AFRICAN BARRICK GOLD PLC: Prelim Results for the 12 months ended 31 Dec 2013

AFRICAN BARRICK GOLD PLC: Prelim Results for the 12 months ended 31 Dec 2013
12 February 2014 


    Preliminary Results for the 12 months ended 31 December 2013 (Unaudited)
    Based on IFRS and expressed in US Dollars (US$)
    African Barrick Gold plc ("ABG'') reports full year 2013 results

"2013 was a year of significant change within ABG as we undertook a major
Operational Review to ensure the business was set up to deliver increasing
value in a lower gold price environment," said Brad Gordon, Chief Executive
Officer of African Barrick Gold. "We achieved production ahead of guidance and
cash costs 10% below guidance with a US$500 per ounce reduction in our all-in
sustaining cost ("AISC") compared to Q4 2012. As a result of mine planning
changes and lower gold price assumptions we have incurred non-cash impairment
charges at a number of our assets, but we expect positive cash flow generation
at each of our sites going forward. For 2014 we expect increased production of
650,000 to 690,000 ounces of gold at reduced cash costs of US$740 to US$790 per
ounce sold and reduced AISC of US$1,100 to US$1,175 per ounce sold driven by
sustainable cost savings and updated mine plans."
    Full Year Operational 2013 Highlights

Production of 641,931 ounces with full year sales of 649,742 ounces, 3% and 7%
respectively, higher than 2012

Cash costs2 of US$827 per ounce sold, 12% below 2012

All-in sustaining costs2 of US$1,362 per ounce sold, down 14% on 2012

Operational Review delivered US$129 million in cost reductions by the end of
2013

Rescheduled Buzwagi life of mine plan to enable positive cash flow generation

Deferred Gokona Cut 3 at North Mara whilst investigating opportunity to mine
underground

Bulyanhulu CIL Expansion project construction close to completion,
commissioning continuing through Q2 2014

As a result of revised life of mine plans and lower future gold price
assumptions our total reserve base has reduced by 3.9 million ounces to 12.7
million ounces
    Full Year Financial Highlights

Revenue of US$929 million and EBITDA2 of US$240 million

Deferral of Gokona Cut 3 to drive cash flow led to a year-end non-cash
impairment charge of US$96 million at North Mara

Total impairment charges of US$823 million for 2013 leading to a net loss of
US$781 million for the year

Adjusted net earnings2 of US$106 million (US25.9 cents per share)

Cash position of US$282 million as at 31 December 2013

Proposed final dividend of US2.0 cents per share; total dividend for 2013 of
US3.0 cents per share
                                                    Three months ended 31   
                                                        December         


                                                                     
(Unaudited, in US$'000 unless otherwise stated)      2013          20124  
                                                                     
Revenue                                           221,603        275,281  
                                                                     
EBITDA2                                            44,866         75,139  
                                                                     
Adjusted EBITDA2                                   58,460         81,815  
                                                                     
Net (loss)/ earnings                             (97,700)       (34,753)  
                                                                     
Basic (loss)/ earnings per share (EPS) (cents)     (23.8)          (8.5)  
                                                                     
Adjusted net earnings2                             27,891         11,260  
                                                                     
Adjusted net earnings per share (AEPS) (cents)2       6.8            2.7  
                                                                     
Dividend per share (cents)                            2.0           12.3  
                                                                     
Cash and cash equivalents                         282,409        401,348  
                                                                     
Cash generated from operating activities           48,193         96,372  
                                                                     
Operating cash flow per share (cents)2               11.7           23.5  
                                                                     
Capital expenditure5                               91,190        114,876  
                                                                     
Drawdown of long term debt (Borrowings)            32,000              -  
                                                                     
Equity                                          1,927,362      2,778,290  


                                                                         
                                                     Year ended 31 December 


                                                                     
(Unaudited, in US$'000 unless otherwise stated)       2013          20124 
                                                                     
Revenue                                            929,004      1,011,738 
                                                                     
EBITDA2                                            240,407        336,282 
                                                                     
Adjusted EBITDA2                                   275,874        342,958 
                                                                     
Net (loss)/ earnings                             (781,101)         62,780 
                                                                     
Basic (loss)/ earnings per share (EPS) (cents)     (190.4)           15.3 
                                                                     
Adjusted net earnings2                             106,277        108,793 
                                                                     
Adjusted net earnings per share (AEPS) (cents)2       25.9           26.5 
                                                                     
Dividend per share (cents)                             3.0           16.3 
                                                                     
Cash and cash equivalents                          282,409        401,348 
                                                                     
Cash generated from operating activities           187,115        268,733 
                                                                     
Operating cash flow per share (cents)2                45.6           65.5 
                                                                     
Capital expenditure5                               385,069        331,885 
                                                                     
Drawdown of long term debt (Borrowings)            142,000              - 
                                                                     
Equity                                           1,927,362      2,778,290 


                                                                         
    CEO Statement


I joined ABG in August 2013 as I saw a significant opportunity at the company.
From the outside I believed that the company had great assets, talented people
and that Tanzania was a stable place to operate. Since joining, I have immersed
myself in the business and now believe I underestimated how big an opportunity
we have within the company. 
We have a portfolio of exceptional assets, with Bulyanhulu being a truly world
class deposit. North Mara continues to provide positive results and is a high
grade open pit mine with excellent potential to go underground. Buzwagi, which
historically has had a number of challenges, has been rescheduled and will
generate cash flow for us going forward. 
I have also been impressed by the knowledge and experience we have within the
organisation and the pool of skilled labour available in Tanzania. As a result,
during the year we have been able to further increase the proportion of
Tanzanians in our workforce to over 93%. We have also enhanced the leadership
group with additional operational expertise to drive continued operational
efficiencies while increasing our production base. 
I have operated in a number of jurisdictions across the world and believe that
Tanzania compares well to many of them. In this regard, I have enjoyed fruitful
initial dialogues with the Government, something which I will continue to
progress throughout 2014, as I seek to ensure that ABG receives the recognition
and support it requires given our position as the largest investor and private
sector employer in the country. 
Year in Review 
2013 was a year of significant change within ABG as we undertook a major
Operational Review to ensure the business was set up to thrive in a lower gold
price environment. Under the leadership of our now Chief Financial Officer
Andrew Wray, we identified over US$185 million of cost savings across the
business ranging from reductions in capital spend, exploration, corporate
overheads and organisational structures. The Operational Review has been a
great success and we had removed US$129 million of cost from the business by
the end of 2013. This enabled us to deliver a year-on-year reduction in all-in
sustaining costs ("AISC") of 14% to US$1,362, with fourth quarter AISC of
US$1,171 per ounce, representing a 30% reduction on the same period 12 months
ago. Our traditional measure of cash costs reduced by 12% to US$827 per ounce
for the full year, and our exit rate was 19% lower than the previous year at
US$774 per ounce.   
On the production front, 2013 marked a turning point as we saw production
increase year-on-year by 3% to 641,931 ounces, 7% ahead of the top of our
guidance range. If we exclude Tulawaka, which stopped operating early in the
year, our three core mines increased production by 7%, when compared to 2012.
This was driven by strong performances at North Mara and Buzwagi, up 33% and
10% respectively year-on-year, as a result of improved grade at North Mara and
increased throughput at Buzwagi. This more than offset the weaker first half
performance from Bulyanhulu as a result of both labour shortages and equipment
availabilities. 
The dramatic drop in the gold price over the year meant that the stronger
production and cost performance against 2012 did not fully translate into
improved financial performance with our average realised gold price of US$1,379
per ounce being 17% lower than the 2012 average of US$1,668 per ounce. As a
result, revenues from ongoing operations dropped to US$929 million (down 8%),
with EBITDA of US$240 million. Earnings were further impacted by total non-cash
impairment charges of US$1,061 million as a result of the impact of a lower
gold price assumption and significant changes to mine plans, which led to a
loss of 190.4 cents per share. On an adjusted basis, earnings were 25.9 cents
per share. 
Operational Review 
We achieved total Operational Review savings of US$129 million against a target
of over US$100 million by the end of 2013.The delivery on the cost savings is
highlighted by the consistent reduction in our AISC over the year and improved
cash flow generation from our sustaining operations quarter on quarter
supported by delivering a strong production profile throughout the year. We
remain committed and on track to deliver against the US$185 million target set
out earlier in the year, as our guidance reflects. We are simultaneously
intensifying the ongoing review in our core mining areas, which were largely
outside the scope of the Operational Review, and we are confident that this
will deliver further efficiencies and cost savings throughout 2014 and beyond.
Progress against each of the key areas of the Operational Review is detailed
below: 
Capital discipline 
We achieved US$58 million of sustaining capital expenditure savings in 2013
inclusive of land purchases. We continue to assess all future capital
expenditure to identify further opportunities to deploy our capital more
effectively and improve the capital intensity of the business. We have planned
for a further US$10-15 million savings in 2014 in respect of sustaining capital
as reflected in our guidance. 
Corporate overhead cost reductions 
We have made excellent progress simplifying the corporate structure and the
reduction in size of our support offices as confirmed by savings of US$18
million achieved in 2013. Headcount in our corporate offices has already been
reduced by 39%, and this will rise to 52% by the end of 2014, which has driven
lower travel and associated costs. We are in the process of transitioning
specific support functions from our Johannesburg office to Tanzania in order to
achieve improved operational efficiencies and further localisation in our main
country of operation. A further reduction of US$3 million is expected to be
achieved in 2014.   
Exploration 
We achieved a total saving of US$25 million in 2013. We have focused our
exploration programme on potential high return programmes at Bulyanhulu and on
two targets in the North Mara region while we undertook extensive low cost
sampling and anomaly testing in Kenya in order to prepare for future
programmes. In 2014 our main focus areas will be at Bulyanhulu and in Kenya. We
expect 2014 expenditure to be in line with 2013. 


    Operating Cost Reductions

We achieved US$28 million of savings on an annualised, like for like basis.
Major savings to date have been in camp services, consumables and security, as
well as in the reduction of our overall workforce which, excluding Tulawaka,
has reduced by 12%. This includes a 29% reduction of international workers from
411 to 290 employees as part of our efforts to increase localisation in
Tanzania. 2014 will see an increased focus on maintenance and external services
while delivering increased labour savings on the back of our existing
restructuring plans. As a result we expect our savings over 2014 to be in line
with our previous guidance.
    Mine Planning


Key to the improvements made over the year were the decisions we took regarding
mine planning at each of the assets. We have reviewed each of the mine plans in
light of a reduced reserve price of US$1,300 per ounce and re-designed the
plans to ensure that each of the mines are able to generate positive cash
flows. 
At Buzwagi, in June 2013 we re-engineered the life of mine plan to
substantially reduce the amount of waste movement required and optimise the
grade of the mine. This resulted in a reduction of reserve life, together with
a reduction in carrying value to US$253 million as at 31 December 2013, but
which also drives a significant improvement in AISC and has positioned the mine
to deliver positive cash flows for the next five years. 
At North Mara, during the year we made several changes to the life of mine plan
which will substantially reduce the strip ratio, volume of material to be moved
and ultimate footprint of the asset. Part of this was the decision in October
to defer Gokona Cut 3, which contains 628koz of North Mara's reserve base,
while we finalise a feasibility study into the alternative of mining out this
reserve by underground methods. This deferral, together with our final reserve
calculations, has resulted in a year-end non- cash post tax impairment of US$96
million which, together with the mid-year impairment of US$128 million, leaves
North Mara with a carrying value of US$367 million. We are confident that the
outcome of the underground study will be positive, and together with the other
changes made, will ensure strong free cash flow generation together with an
optimised footprint to alleviate some of the social pressures and land access
issues experienced at the mine. 
At Bulyanhulu, we reviewed the mining methods for the future life of mine plan
and believe that greater efficiencies and value will be generated by moving to
a much higher proportion of mechanised mining. Specifically, this involves
changing the predominant stoping method from "cut and fill" to "long hole".
This change, together with the revised gold price assumptions, has resulted in
a reduction in reserve ounces and overall grade whilst improving both the cost
and safety profile of the mine. Notwithstanding the reduction in reserve base,
Bulyanhulu remains a long life, high grade asset, as demonstrated by recently
released exploration results, and we are confident it will deliver an
increasing production profile at lower costs. The priority at Bulyanhulu is to
turn what is undoubtedly a world class deposit into a truly world class mine.
The carrying value of the asset remains at US$1.1 billion. 
Senior Leadership Team Changes 
During 2013 there were a number of changes to the Senior Leadership team at
ABG. I joined as Chief Executive Officer in August and, with my primary focus
to ensure that the mines deliver consistent and improved operational
performance, I took on direct responsibility for operations in September. In
the same month I appointed Andrew Wray as Chief Financial Officer, who prior to
this had been Head of Corporate Development and Investor Relations at ABG and
instrumental in transitioning ABG to a public company. More recently he led the
company-wide Operational Review and with his skills and experience he will add
significant value as CFO at what is a critical time for us as we continue to
focus on cost containment. In December 2013, Michelle Ash joined as Executive
General Manager Planning and Business Improvement from BHP Mitsubishi. Michelle
will utilise her 20 years of experience in the Mining and Manufacturing sectors
to identify and drive business improvement projects across the company. She
will take direct responsibility for leading the next phase of the Operational
Review and co-ordinating integrated business planning across all functions and
sites. Following these changes, I believe we now have the leadership team in
place to drive this company forward. 
Transfer of Tulawaka 
We took the decision to close the Tulawaka mine in early 2013 and as part of
this process we commenced discussions with STAMICO, the Tanzanian State Mining
Corporation, regarding the ultimate use of the site. In November we reached
agreement with STAMICO whereby it would acquire Tulawaka and certain
exploration licenses surrounding the mine for consideration of US$4.5 million
and the grant of a 2% net smelter royalty on future production in excess of
500,000 ounces, capped at US$500,000. In addition, as part of the terms of
sale, STAMICO has agreed to assume the remaining closure fund and all remaining
past and future closure and rehabilitation liabilities for Tulawaka. In
February 2014 the transaction completed resulting in a cash payment of US$11.6
million by ABG to STAMICO, this being equal to the amount of the remaining
closure fund, less transaction consideration payable. 
Taxation 
During 2013 we saw a build up in the indirect tax receivable driven by the
abolition of VAT Relief in Q4 2012 in contravention of our Mineral Development
Agreements. Following positive discussions an escrow arrangement for VAT on
imports was agreed in Q3 2013 to ensure quicker and more regular refunds to us.
We saw the first payments from this account during Q4 2013 as well as an
increase in the level of outstanding refunds, which meant that overall refunds
to us in the quarter totalled US$26.7 million, which exceeded VAT incurred in
the same period by US$3.4 million. In addition, we are continuing discussions
with respect to instigating a similar mechanism for VAT on domestic goods. This
is a key priority for us as are our efforts to recover outstanding amounts
owing to ensure that we do not see further outflows in 2014 while starting to
recover the balance outstanding. As at 31 December 2013, outstanding amounts
stood at US$95.0 million. In addition, the remaining balance subject to the
Memorandum of Settlement in 2011, after discounting adjustments, amounts to
US$64.8 million and will be offset against future corporate taxes. 
Corporate Responsibility 
Maintaining our social licence to operate remains critical to the business, and
we made good progress on this in 2013. At North Mara the impact of the
infrastructure projects for the provision of clean water, medical care, schools
and roads are being felt across the communities and our positive impact is
being recognised both locally and nationally. The Maendeleo Fund continues to
support projects around each of our mines and has been especially active in
2013 in providing support to in excess of 40 projects. Overall we made an
investment of US$15.5 million in corporate responsibility projects during the
year (2012: US$14.4 million). From a safety perspective we saw a reduction of
18% in our total reportable injury frequency rate and zero fatalities, which is
encouraging, but we are determined to continue to reduce injuries to zero and
ensure each of our employees goes home safe and healthy every day. 


    Final dividend for 2013

The Directors are pleased to recommend the payment of a final dividend of US2.0
cents per Ordinary Share for 2013. In accordance with our policy, this
represents two thirds of the total dividend of US3.0 cents for 2013, which we
feel is appropriate in order to maintain the strength of our balance sheet
whilst maintaining the discipline of paying a dividend. Subject to shareholders
approving this recommendation at the AGM on 24 April 2014, the final dividend
will be paid on 23 May 2014 to shareholders on the register on 2 May 2014. The
ex-dividend date is 30 April 2014.
    Outlook


ABG enters 2014 with a single focus - operational delivery. We have a portfolio
of high quality assets and our plan is to deliver a continued and sustainable
reduction in costs together with production growth. Our balance sheet remains
strong and we will continue to take the steps required to ensure we are able to
deliver free cash flow from the operations, which can then be appropriately
applied between exploration, capital projects and returns to shareholders. 
For 2014 we expect to see increased production of between 650,000 and 690,000
ounces of gold. At the mine level, at Bulyanhulu our expectation is for
increased production quarter-on-quarter as we move through the year due to
increased throughput and grade, together with the additional ounces from the
CIL Expansion in the second half of the year. At Buzwagi, production will also
increase due to improved grades as a result of the mine planning changes. North
Mara will see higher throughput, although with the planned head grade returning
to levels close to the reserve grade at the mine we expect to see a
corresponding reduction in production. 
As a result of the Operational Review and further ongoing improvements to the
business we are targeting further reductions to our unit costs and we estimate
the cash cost per ounce for the year, including royalties, will be between
US$740-US$790 per ounce sold, a reduction of up to 10% on 2013. 
For 2014 we have further reduced the sustaining capital budget with sustaining
capital expected to be down up to 20% on 2013 at US$90-US$100 million and
capital development inclusive of deferred stripping down by up to 47% to
US$90-US$100 million. The reduction in capital expenditure, together with
reduced corporate overheads, means that we estimate AISC per ounce for the year
will be between US$1,100-US$1,175 per ounce sold, a reduction of up to 19% on
2013. 
Expansionary capital will consist of US$50 million of remaining spend to
complete construction of the Bulyanhulu CIL Expansion project, which will all
be incurred in the first half of 2014. In addition, as noted above, the
completion of the transfer of Tulawaka to STAMICO in Q1 2014 has resulted in an
upfront one-off payment of US$11.6 million. 
Overall, our key objectives for 2014 are: 
achieving Group production of between 650,000-690,000 ounces 
reducing total cash cost, including royalties, to between US$740-US$790 per
ounce sold 
reducing AISC to between US$1,100-US$1,175 per ounce sold 
reducing total capital expenditure to US$230-US$250 million, comprising
US$90-US$100 million of sustaining capital including land, US$90-US$100 million
of capital development inclusive of deferred stripping and US$50 million of
expansion capital 
reducing total inventory levels 
delivering on and expanding the stated objectives and targets of the
Operational Review 
commissioning the Bulyanhulu CIL Expansion 
completing positive feasibility studies at Gokona Underground and Bulyanhulu
Upper East 
optimising Group throughput and recoveries 
further improving our safety record 
continuing the development of our sustainability practices 
attracting and retaining the best people in Africa 
Finally, I would like to thank all of my colleagues for their commitment,
enthusiasm and hard work throughout what has been a year of considerable
change. I am excited by what I have seen at ABG and believe we have a great
opportunity to make this company a leader in Africa. I would also like to thank
our Board for their support, guidance and commitment through the year and I am
very much looking forward to 2014 and beyond. 


    Brad Gordon, Chief Executive Officer
    Key statistics
                                              Three months ended                   
      


                                          31 December      Year ended 31 
December  
                                                                             
  
(Unaudited)                                    2013     20124         2013      
 20124 
                                                                             
  
Tonnes mined (thousands of tonnes)           11,570    13,942       54,100      
48,301 
                                                                             
  
Ore tonnes mined (thousands of tonnes)        2,151     2,266        7,250      
 7,070 
                                                                             
  
Ore tonnes processed (thousands of tonnes)    1,817     2,067        7,979      
 7,698 
                                                                             
  
Process recovery rate (percent)               88.5%     90.0%        88.5%      
 88.3% 
                                                                             
  
Head grade (grams per tonne)                    3.2       3.0          2.8       
2.9 
                                                                             
  
Attributable gold production (ounces)1      165,374   180,684      641,931     
626,212 
                                                                             
  
Attributable gold sold (ounces)1            168,177   159,585      649,742     
609,252 
                                                                             
  
Copper production (thousands of pounds)       3,548     4,266       11,970      
12,875 
                                                                             
  
Copper sold (thousands of pounds)             3,010     3,239       11,570      
11,523 
                                                                             
  
Cash cost per tonne milled2 (US$)                72        74           67       


    74
                                                                                


  
Per ounce data (US$)                                                             


      
                                                                                
      


 Average spot gold price3                 1,276     1,722        1,411      
 1,669 


                                                                                
      


 Average realised gold price2             1,251     1,700        1,379      
 1,668 


                                                                                
      


 Total cash cost2                           774       958          827       
941 


                                                                                
      


 All-in sustaining cost2                  1,171     1,675        1,362      
 1,585 
                                                                             
  
Average realised copper price (US$/lb)         3.31      3.42         3.24      
  3.57 


                                                                                
      
    Financial results - restated to reflect Tulawaka as a discontinued operation


                                          Three months ended       Year 
ended 31     
                                              31 December            
December        
                                                                             
    
(Unaudited)                                        2013     20124         2013   
20124 
                                                                             
    
(US$'000)                                                                        


        
                                                                                


    
Revenue                                         221,603   275,281      929,004 
1,011,738 
                                                                             
    
Cost of sales                                 (169,770) (198,415)    (713,806) 
(720,036) 
                                                                             
    
Gross profit                                     51,833    76,866      215,198  
 291,702 
                                                                             
    
Corporate administration                        (8,898)  (12,731)     (32,157)  
(47,640) 
                                                                             
    
Exploration and evaluation costs                (5,979)   (9,217)     (16,927)  
(26,752) 
                                                                             
    
Corporate social responsibility expenses        (3,667)   (4,107)     (12,237)  
(13,051) 
                                                                             
    
Impairment charges                            (133,320)         -  (1,044,310)   


       -
                                                                                


    
Other charges                                   (8,995)  (12,527)     (30,424)  
(17,071) 
                                                                             
    
(Loss)/profit before net finance cost         (109,026)    38,284    (920,857)  
 187,188 
                                                                             
    
Finance income                                      598       418        1,670   
2,056 
                                                                             
    
Finance expense                                 (2,462)   (2,516)      (9,552)  
(10,079) 
                                                                             
    
(Loss)/ profit before taxation                (110,890)    36,186    (928,739)  
 179,165 
                                                                             
    
Tax credit/ (expense)                            19,232  (33,231)      187,959  
(78,693) 
                                                                             
    
Net (loss)/ profit from continuing operations  (91,658)     2,955    (740,780)  
 100,472 
                                                                             
    
Discontinued operations:                                                         


        
                                                                                


    
Net loss from discontinued operations           (8,684)  (48,998)     (57,653)  
(48,979) 
                                                                             
    
Net (Loss)/ profit for the period             (100,342)  (46,043)    (798,443)  
  51,493 
                                                                             
    
Attributed to:                                                                   


        
                                                                                


    
 Owners of the parent (net (loss)/ earnings)   (97,700)  (34,753)    (781,101)  
  62,780 
                                                                             
    
- Continuing operations                        (91,658)     2,955    (740,780)  
 100,472 
                                                                             
    
- Discontinued operations                       (6,042)  (37,708)     (40,321)  
(37,692) 
                                                                             
    
 Non-controlling interests                      (2,642)  (11,290)     (17,332)  
(11,287) 
                                                                             
    
- Discontinued operations                       (2,642)  (11,290)     (17,332)  
(11,287) 


                                                                                
        


Reconciliation of Group Financial Performance split by Continuing and
Discontinued Operations 
                                                         Year ended 31 
December 2013       


                                                                                
           
                                                      Continuing  Discontinued  
           


                                                  operations   operations   
  Total     
                                                                             
       
Revenue                                                   929,004       13,514   
942,518  
                                                                             
       
Cost of sales                                           (713,806)     (30,368)  
 (744,174)  
                                                                             
       
Gross profit/(loss)                                       215,198     (16,854)   
198,344  
                                                                             
       
Corporate administration                                 (32,157)      (1,311)  
  (33,468)  
                                                                             
       
Exploration and evaluation costs                         (16,927)            -  
  (16,927)  
                                                                             
       
Corporate social responsibility expenses                 (12,237)      (3,259)  
  (15,496)  
                                                                             
       
Impairment charges                                    (1,044,310)     (16,701) 
(1,061,011)  
                                                                             
       
Other charges                                            (30,424)     (19,442)  
  (49,866)  
                                                                             
       
(Loss)/profit before net finance expense and taxation   (920,857)     (57,567)  
 (978,424)  
                                                                             
       
Finance income                                              1,670           30   


     1,700 
                                                                                


       
Finance expense                                           (9,552)        (116)   
(9,668)  
                                                                             
       
(Loss)/ profit before taxation                          (928,739)     (57,653)  
 (986,392)  
                                                                             
       
Tax credit/ (expense)                                     187,959            -   
187,959  
                                                                             
       
Net (loss)/profit for the year                          (740,780)     (57,653)  
 (798,433)  


                                                                                
           


                                                        Year ended 31 December 
20124    


                                                                                
        
                                                       Continuing Discontinued  
        


                                                   operations  operations   
 Total   
                                                                             
    
Revenue                                                 1,011,738       75,601 
1,087,339 
                                                                             
    
Cost of sales                                           (720,036)     (77,823) 
(797,859) 
                                                                             
    
Gross profit/(loss)                                       291,702      (2,222)  
 289,480 
                                                                             
    
Corporate administration                                 (47,640)      (3,928)  
(51,568) 
                                                                             
    
Exploration and evaluation costs                         (26,752)      (2,208)  
(28,960) 
                                                                             
    
Corporate social responsibility expenses                 (13,051)      (1,394)  
(14,445) 
                                                                             
    
Impairment charges                                              -     (44,536)  
(44,536) 
                                                                             
    
Other charges                                            (17,071)        (600)  
(17,671) 
                                                                             
    
(Loss)/profit before net finance expense and taxation     187,188     (54,888)  
 132,300 
                                                                             
    
Finance income                                              2,056           46   
2,102 
                                                                             
    
Finance expense                                          (10,079)        (226)  
(10,305) 
                                                                             
    
(Loss)/ profit before taxation                            179,165     (55,068)  
 124,097 
                                                                             
    
Tax credit/ (expense)                                    (78,693)        6,089  
(72,604) 
                                                                             
    
Net (loss)/profit for the year                            100,472     (48,979)  
  51,493 


                                                                                
        
    

1 Production and sold ounces reflect equity ounces which exclude 30% of
Tulawaka's production and sales base.

2 Average realised gold price, total cash cost per ounce, all-in sustaining
cost per ounce, cash cost per tonne milled, EBITDA, adjusted EBITDA, adjusted
net earnings, adjusted net earnings per share and operating cash flow per share
are non-IFRS financial performance measures with no standard meaning under
IFRS. Refer to "Non IFRS measures"' on page 28 for definitions.

3 Reflect the London PM fix price.

4 Restated for the impact of capitalised stripping due to the adoption of IFRIC
20 and the reclassification of Tulawaka as a discontinued operation.

5 Excludes non-cash reclamation asset adjustments and includes finance lease
purchases. 


For further information, please visit our website: www.africanbarrickgold.com,
or contact: 


    African Barrick Gold plc +44 (0) 207 129 7150
                                             
    Brad Gordon, Chief Executive Officer

Andrew Wray, Chief Financial Officer

Giles Blackham, Investor Relations Manager
    Bell Pottinger +44 (0) 207 861 3232
                                   
    Daniel Thöle
    About ABG


ABG is Tanzania's largest gold producer and one of the largest gold producers
in Africa. We have three producing mines, all located in Northwest Tanzania,
and several exploration projects at various stages of development in Tanzania
and Kenya. We have a high-quality asset base, solid growth opportunities and a
clear strategy of optimising, expanding and growing our business. 
Maintaining our licence to operate through acting responsibly in relation to
our people, the environment and the communities in which we operate is central
to achieving our objectives. 
ABG is a UK public company with its headquarters in London. We are listed on
the Main Market of the London Stock Exchange under the symbol ABG and have a
secondary listing on the Dar es Salaam Stock Exchange. Historically, and prior
to our initial public offering (IPO), our operations comprised the Tanzanian
gold mining business of Barrick Gold Corporation, our majority shareholder. ABG
reports in US dollars in accordance with IFRS as adopted by the European Union,
unless otherwise stated in this report. 
Conference call 
A conference call will be held for analysts and investors on 12 February 2014
at Noon London time. 
The access details for the conference call are as follows: 
Participant dial in: +44 (0) 203 003 2666 / +1 646 843 4608 
Password: ABG 
A recording of the conference call will be made available at 
www.africanbarrickgold.com after the call. 
FORWARD- LOOKING STATEMENTS 
This report includes "forward-looking statements" that express or imply
expectations of future events or results. Forward-looking statements are
statements that are not historical facts. These statements include, without
limitation, financial projections and estimates and their underlying
assumptions, statements regarding plans, objectives and expectations with
respect to future production, operations, costs, projects, and statements
regarding future performance. Forward-looking statements are generally
identified by the words "plans," "expects," "anticipates," "believes,"
"intends," "estimates" and other similar expressions. 
All forward-looking statements involve a number of risks, uncertainties and
other factors, many of which are beyond the control of ABG, which could cause
actual results and developments to differ materially from those expressed in,
or implied by, the forward-looking statements contained in this report. Factors
that could cause or contribute to differences between the actual results,
performance and achievements of ABG include, but are not limited to, changes or
developments in political, economic or business conditions or national or local
legislation or regulation in countries in which ABG conducts - or may in the
future conduct - business, industry trends, competition, fluctuations in the
spot and forward price of gold or certain other commodity prices (such as
copper and diesel), currency fluctuations (including the US dollar, South
African rand, Kenyan shilling and Tanzanian shilling exchange rates), ABG's
ability to successfully integrate acquisitions, ABG's ability to recover its
reserves or develop new reserves, including its ability to convert its
resources into reserves and its mineral potential into resources or reserves,
and to process its mineral reserves successfully and in a timely manner, ABG's
ability to complete land acquisitions required to support its mining
activities, operational or technical difficulties which may occur in the
context of mining activities, delays and technical challenges associated with
the completion of projects, risk of trespass, theft and vandalism, changes in
ABG's  business strategy including,  ABG's further  implementation of the
Operational Review, as well as risks and hazards associated with the business
of mineral exploration, development, mining and production and risks and
factors affecting the gold mining industry in general. Although ABG's
management believes that the expectations reflected in such forward-looking
statements are reasonable, ABG cannot give assurances that such statements will
prove to be correct. Accordingly, investors should not place reliance on
forward-looking statements contained in this report. Any forward-looking
statements in this report only reflect information available at the time of
preparation. Subject to the requirements of the Disclosure and Transparency
Rules and the Listing Rules or applicable law, ABG explicitly disclaims any
obligation or undertaking publicly to update or revise any forward-looking
statements in this report, whether as a result of new information, future
events or otherwise. Nothing in this report should be construed as a profit
forecast or estimate and no statement made should be interpreted to mean that
ABG's profits or earnings per share for any future period will necessarily
match or exceed the historical published profits or earnings per share of ABG. 


    AFRICAN BARRICK GOLD

LSE: ABG
    TABLE OF CONTENTS
                                                                               


                                                                           
2013 Operating Overview                                                    10   


                                                                               
                                                                               


                                                                           
Exploration and Development Review                                         14   


                                                                               
                                                                               


                                                                           
Financial Review                                                           17   


                                                                               
                                                                               


                                                                           
Non-IFRS measures                                                          28   


                                                                               
                                                                               


                                                                           
Risk Review                                                                30   


                                                                               
                                                                               


                                                                           
Directors                                                                  31   


                                                                               
                                                                               


                                                                           
Condensed financial information:                                                


                                                                               
                                                                               


                                                                           
- Consolidated Income Statement and Consolidated Statement of              32/ 
Comprehensive Income                                                       33   


                                                                               
                                                                               


                                                                           
- Consolidated Balance Sheet                                               34   


                                                                               
                                                                               


                                                                           
- Consolidated Statement of Changes in Equity                              35   


                                                                               
                                                                               


                                                                           
- Consolidated Statement of Cash Flows                                     36   


                                                                               
                                                                               


                                                                           
- Notes to the condensed financial information                             37   


                                                                               
                                                                               


                                                                           
Reserves and Resources                                                     55   


                                                                               
                                                                               
                                                                               
    2013 Operating Overview


We made excellent progress across our assets in 2013, delivering total
production of 641,931 ounces, a year-on-year increase of 3% and 7% ahead of
guidance as well as reducing cash costs by 12% against 2012, 10% below the
bottom of our guidance range. 
Production at North Mara of 256,732 ounces was 33% higher than that of the
prior year. Head grade and mill recovery were positively impacted by an
increase both in ore tonnes mined and in grade, predominantly driven by mining
from the Gokona pit due to a change in the mine plan incorporating positive
grade reconciliations. 
At Bulyanhulu, gold production of 198,286 ounces was 16% lower than the prior
year mainly due to lower tonnes mined as a result of reduced equipment
availability and staff shortages in the first half of the year. This was
further impacted by a 3% decrease in grade due to paste fill delays in H1 2013
impacting on the availability of high grade stopes. This has since been
addressed and paste filling has recovered to expected levels. 
At Buzwagi, gold production for the full year of 181,984 ounces was 10% higher
than the prior year driven by increased throughput as a result of improved
plant reliability as it operated at nameplate capacity during 2013. The impact
of the revised mine plan was evident in the second half of the year as we saw a
significant reduction in total tonnes mined. 
At Tulawaka, we produced 4,929 ounces on an attributable basis with production
ceasing in the first half of the year as a result of our decision to close the
mine. In June 2013 we commenced closure of the site before agreeing its
transfer to STAMICO, the Tanzanian state mining company in November 2013. This
transfer has subsequently been completed during February 2014. 
Total tonnes mined amounted to 54.1 million tonnes, an increase of 12% from
48.3 million in 2012. This was predominantly H1 weighted prior to the impact of
the changes to the Buzwagi and North Mara mine plans which reduced material
movement. Ore tonnes mined from open pits amounted to 6.4 million tonnes
compared to 6.0 million in 2012. Increased ore tonnes from North Mara due to
positive reserve model reconciliations were partially offset by a reduction of
tonnes mined at Buzwagi. Underground tonnes hoisted were negatively impacted by
operational issues at Bulyanhulu and amounted to 0.9 million tonnes compared to
1.0 million tonnes in 2012. 
Ore tonnes processed amounted to 7.9 million tonnes, an improvement of 4% from
2012 driven by increased throughput at Buzwagi due to process plant
improvements. 
Head grade for the year of 2.8 grams per tonne (g/t) was 3% lower than 2.9 g/t
in 2012. This was due to a reduction in grade at Bulyanhulu due to limited
availability of high grade stopes, an increased proportion of group throughput
coming from Buzwagi, our lowest grade mine, partially offset by an increase of
40% in the grade at North Mara. 
Our cash costs for the year were 12% lower than 2012, and amounted to US$827
per ounce sold. The decrease was primarily due to: 
increased capitalised mining expenditure at Buzwagi and North Mara (US$73/oz); 
reduced labour costs driven by a reduction in expat labour (US$26/oz); and 
the impact of the increased production base  (US$14/oz). 
This was partially offset by increased contracted services, maintenance and
consumable usage as a result of increased activity at each of the mines. 
Our all-in sustaining cost for the year was 14% lower than 2012, and amounted
to US$1,362 per ounce sold. The decrease was predominantly due to the lower
cash costs as explained above together with lower sustaining capital and
corporate costs. 
Cash costs of US$67 per tonne milled for the year have reduced by 9% on 2012
(US$74 per tonne), primarily as a result of the above factors. 
Gold sales amounted to 649,742 ounces, 1% ahead of production due to the sales
of ounces held over from 2012. 
Our copper production for the year of 12.0 million pounds was 7% lower than
2012 (12.9 million pounds), which reflected the lower production base at
Bulyanhulu but which was partially offset by higher production at Buzwagi. 
We made further improvements in the Group Total Reportable Injury Frequency
Rate ("TRIFR") which reduced by 18% to 0.68. We suffered zero fatalities in the
year. 


    Bulyanhulu
    Key statistics
                                                    Three months  
                                                      ended 31    
                                                      December    


                                                              
(Unaudited)                                          2013    2012  
                                                              
Underground ore tonnes hoisted            Kt          222     214  
                                                              
Ore milled                                Kt          229     230  
                                                              
Head grade                                g/t         7.9     7.2  
                                                              
Mill recovery                             %         91.2%   89.8%  
                                                              
Ounces produced                           oz       53,186  47,684  
                                                              
Ounces sold                               oz       56,735  46,306  
                                                              
Cash cost per ounce sold                  US$/oz      776     971  
                                                              
AISC per ounce sold                       US$/oz    1,118   1,596  
                                                              
Cash cost per tonne milled                US$/t       193     196  
                                                              
Copper production                         Klbs      1,348   1,206  
                                                              
Copper sold                               Klbs      1,304   1,293  
                                                              
Breakdown of Capital expenditure                                   
                                                              
 - Sustaining capital                    US$('000)  4,333  10,936  
                                                              
 - Capitalised development               US$('000) 10,750  12,235  
                                                              
 - Expansionary capital                  US$('000) 41,581  30,185  


                                                                  
                                                   56,664  53,356 


                                                              
- Non-cash reclamation asset adjustments US$('000)    (5) (2,950)  
                                                              
Capital expenditure                      US$('000) 56,659  50,406  


                                                                  
                                                        Year ended 31  
                                                        December    


                                                                
(Unaudited)                                             2013    2012 
                                                                
Underground ore tonnes hoisted            Kt             872     959 
                                                                
Ore milled                                Kt             871   1,012 
                                                                
Head grade                                g/t            7.8     8.0 
                                                                
Mill recovery                             %            90.9%   90.6% 
                                                                
Ounces produced                           oz         198,286 236,183 
                                                                
Ounces sold                               oz         195,304 235,410 
                                                                
Cash cost per ounce sold                  US$/oz         890     803 
                                                                
AISC per ounce sold                       US$/oz       1,344   1,245 
                                                                
Cash cost per tonne milled                US$/t          200     187 
                                                                
Copper production                         Klbs         4,855   6,102 
                                                                
Copper sold                               Klbs         4,508   5,895 
                                                                
Breakdown of Capital expenditure                                     
                                                                
 - Sustaining capital                    US$('000)    25,193  35,193 
                                                                
 - Capitalised development               US$('000)    45,428  45,605 
                                                                
 - Expansionary capital                  US$('000)   114,912  36,814 


                                                                    
                                                     185,533 117,612


                                                                
- Non-cash reclamation asset adjustments US$('000)  (10,044)    (43) 
                                                                
Capital expenditure                      US$('000)   175,489 117,569 


                                                                    
    
    Operating performance


For the full year 2013, gold production of 198,286 ounces at Bulyanhulu was 16%
lower than the prior year mainly due to lower tonnes mined as a result of
reduced equipment availability and staff shortages noted in the first half of
the year. This was further impacted by a 3% decrease in grade due to paste fill
delays in H1 2013 impacting on the availability of high grade stopes. This has
since been addressed and paste filling has recovered to expected levels. Gold
ounces sold for the year of 195,304 ounces were 17% below that of the prior
year primarily due to the lower production base. 
For the full year, copper production of 4.9 million pounds was 20% lower than
the prior year's production of 6.1 million due to the reduced throughput and
grade profile. 
Cash costs for the year of US$890 per ounce sold were 11% higher than the prior
year of US$803. Cash costs were negatively impacted by lower production levels
and the resultant lower co-product revenue. This was partially offset by lower
maintenance, consumable usage and labour costs and lower sales related costs
due to lower sales volumes and a lower realised gold price. Cash costs per
tonne milled increased to US$200 in 2013 (US$187 in 2012) as a result of the
lower throughput and costs outlined above. 
AISC per ounce sold for the year of US$1,344 was 8% higher than 2012 of
US$1,245. This was driven by the higher cash cost base, and increased capital
expenditures per ounce as a result of reduced production, which more than
offset the 28% reduction in sustaining capital expenditure. 
Capital expenditure for the year, excluding reclamation asset adjustments, of
US$185.5 million was 58% higher than the prior year of US$117.6 million mainly
driven by the expansionary capital spend on the CIL expansion project (US$104.9
million) and investment in equipment (US$5.2 million) and capitalised
evaluation costs (US$2.3 million) relating to the Upper East project. Key
capital expenditure also included capitalised underground development (US$45.4
million), mining equipment related to critical underground equipment (US$10.2
million) and investments in tailings and infrastructure (US$10.7 million).
Total capital expenditure of US$175.5 million was positively impacted by a
negative non-cash reclamation adjustment of US$10.0 million, due to the
increase in risk-free interest rates. 
The CIL Expansion project, which is expected to add approximately 40,000 ounces
of gold per annum for the first six years of operation, remains on track for
completion at the end of Q1 2014 with commissioning continuing through Q2 2014.
There is approximately US$50 million of remaining capital expenditure to be
incurred in 2014. In addition, there are approximately US$15 million of
payments to be made in H1 2014 which were accrued during 2013. In addition, the
revised feasibility study for the Upper East Zone will be completed shortly and
presented to the Board. 
Following the changes to the mine plan as a result of moving to a higher
proportion of mechanised mining and a revised gold price assumption the
underground reserves base at Bulyanhulu now stands at 9.0 million ounces at a
grade of 9.5 grams per tonne, with another 0.3 million ounces at a grade of
1.23 grams per tonne attributable to surface tailings. 


    Buzwagi
    Key statistics


                                    Three months ended 31        Year ended 
31     


                                              December                 December 
      
                                                                                


  
(Unaudited)                                    2013       20121        2013     
 20121 
                                                                             
  
Tonnes mined                Kt                7,244       7,906      32,177     
28,563 
                                                                             
  
Ore tonnes mined            Kt                1,250       1,325       3,753     
 4,233 
                                                                             
  
Ore milled                  Kt                  945       1,062       4,400     
 3,715 
                                                                             
  
Head grade                  g/t                 1.9         2.1         1.5      
1.6 
                                                                             
  
Mill recovery               %                 88.8%       90.9%       88.2%     
 87.3% 
                                                                             
  
Ounces produced             oz               51,830      64,829     181,984    
165,770 
                                                                             
  
Ounces sold                 oz               50,382      51,264     187,348    
155,322 
                                                                             
  
Cash cost per ounce sold    US$/oz              941         853         945     
 1,066 
                                                                             
  
AISC per ounce sold         US$/oz            1,300       1,539       1,506     
 1,798 
                                                                             
  
Cash cost per tonne milled  US$/t                50          41          40      


    45
                                                                                


  
Copper production           Klbs              2,200       3,059       7,115     
 6,773 
                                                                             
  
Copper sold                 Klbs              1,706       1,945       7,062     
 5,628 
                                                                             
  
Breakdown of Capital Expenditure                                                 


      
                                                                                


  
 - Sustaining capital       US$('000)         4,309      19,893      31,589     
56,441 
                                                                             
  
 - Capitalised development  US$('000)        10,812      10,492      60,136     
39,455 
                                                                             
  
 - Expansionary capital     US$('000)             -          62           -      


    62
                                                                                
      


                                         15,121      30,447      91,725     
95,958 
                                                                             
  
 - Non-cash reclamation                                                          
  
asset adjustments           US$('000)       (2,318)       7,498     (9,230)     
10,494 
                                                                             
  
Capital expenditure         US$('000)        12,803      37,945      82,495    
106,452 
                                                                             
   
1 Restated for the impact of capitalised stripping due to the adoption of IFRIC
20. 
Operating performance 
Gold production for the full year of 181,984 ounces was 10% higher than the
prior year driven by increased throughput as a result of improved plant
reliability as it operated at nameplate capacity during 2013. Gold sold for the
year amounted to 187,348 ounces, 21% above that of the prior year period due to
the increased production base and the sale of concentrate on hand from Q4 2012. 
For the full year, copper production of 7.1 million pounds was 5% higher than
in 2012 driven by the increased throughput, slightly offset by lower copper
grades. 
Cash costs for the year of US$945 per ounce sold were 11% lower than the prior
year of US$1,066. Cash costs were positively impacted by increased production
levels and resultant co-product revenue, lower labour costs, due to a
significant reduction in the international workforce and increased capitalised
stripping costs in H1 2013. This was partially offset by higher consumables,
energy and fuel costs and contracted services due to the increased mining
activity and throughput in H1 2013, and higher cost overheads as a result of
warehouse related costs driven by inventory drawdowns. Cash costs per tonne
milled decreased to US$40 in 2013 (US$45 in 2012) as a result of the costs
outlined above. 
AISC per ounce sold for the year of US$1,506 was 16% lower than 2012 of
US$1,798. This was driven by the lower cash cost base, lower sustaining capital
expenditure and lower corporate administration costs, partly offset by higher
capitalised development costs. 
Capital expenditure for the year, before reclamation asset adjustments, of
US$91.7 million was 4% lower than the prior year of US$95.9 million, with
increased capitalised stripping in H1 2013 more than offset by lower sustaining
capital expenditure over the year. The significant change to the mine plan
reduced the levels of waste movement and therefore capitalised stripping in H2
2013. Key capital expenditure included capitalised stripping costs (US$60.1
million), investments in tailings and infrastructure (US$15.7 million) and
mining equipment driven by component change outs (US$13.9 million). Total
capital expenditure of US$82.5 million was positively impacted by a negative
non-cash reclamation adjustment of US$9.2 million, due to the increase in
risk-free interest rates combined with a reduction in closure costs estimates. 
Following the changes to the mine plan made in July 2013 at Buzwagi, the
reserve base of the asset now stands at 1.1 million ounces at a grade of 1.45
grams per tonne. 


    North Mara
    Key statistics


                                    Three months ended 31       Year ended 
31     


                                               December                December 
     
                                                                                


 
(Unaudited)                                    2013       20121        2013     
20121 
                                                                             
 
Tonnes mined                 Kt               4,104       5,788      21,027    
18,391 
                                                                             
 
Ore tonnes mined             Kt                 678         694       2,601     
1,711 
                                                                             
 
Ore milled                   Kt                 643         740       2,643     
2,786 
                                                                             
 
Head grade                   g/t                3.4         3.0         3.5     
  2.5 
                                                                             
 
Mill recovery                %                86.0%       88.7%       86.8%     
85.4% 
                                                                             
 
Ounces produced              oz              60,358      63,236     256,732   
193,231 
                                                                             
 
Ounces sold                  oz              61,050      56,800     260,945   
186,600 
                                                                             
 
Cash cost per ounce sold     US$/oz             636         949         659     
  953 
                                                                             
 
AISC per ounce sold          US$/oz           1,075       1,671       1,227     
1,693 
                                                                             
 
Cash cost per tonne milled   US$/t               60          73          65      
64 
                                                                             
 
Breakdown of Capital Expenditure                                                 


     
                                                                                


 
 - Sustaining capital        US$('000)        3,562      17,176      38,386    
47,759 
                                                                             
 
 - Capitalised development   US$('000)       13,651       3,955      65,594    
28,139 
                                                                             
 
 - Expansionary capital      US$('000)          445       5,534         949    
10,091 


                                                                                
     


                                         17,658      26,665     104,929    
85,989 
                                                                             
 
 - Non-cash reclamation                                                          
 
asset adjustments            US$('000)      (4,506)       5,805    (11,271)     
7,540 
                                                                             
 
Capital Expenditure          US$('000)       13,152      32,470      93,658    
93,529 
                                                                             


     

1 Restated for the impact of capitalised stripping due to the adoption of IFRIC
20.
    Operating performance


Production for the full year of 256,732 ounces was 33% higher than that of the
prior year. Head grade and mill recovery were positively impacted by an
increase in ore tonnes mined and grade, predominantly driven by mining from the
Gokona pit due to a change in the mine plan. 
Gold ounces sold for the full year of 260,945 ounces were 2% higher than
production due to the sale of ounces on hand from Q4 2012, and 40% higher than
that of 2012 due to the increased production base.   
Cash costs for the year of US$659 per ounce sold were 31% lower than the prior
year of US$953. Cash costs were positively impacted by increased production
levels and increased capitalised stripping costs. This was partially offset by
higher contracted services and maintenance costs due to planned equipment and
plant maintenance. Cash costs per tonne milled for the year were in line with
2012 at US$65 (US$64 in 2012). 
AISC per ounce sold for the year of US$1,227 was 28% lower than 2012 of
US$1,693 due to the reasons outlined above combined with a reduction in capital
expenditure per ounce due to the increased production base. 
Capital expenditure for the year, before reclamation asset adjustments, of
US$104.9 million was 22% higher than the prior year of US$86.0 million, due to
increased capitalised development offset by lower sustaining capital
expenditure and lower expansionary expenditure (2012 included capitalised
drilling costs related to Gokona and Nyabirama underground projects). The
deferral of Cut 3 at Gokona in Q4 2013 led to a reduction in tonnes moved and
an associated reduction in capitalised development for the fourth quarter. Key
capital expenditure included capitalised stripping costs (US$65.6 million),
investments in tailings and infrastructure (US$14.7 million) and investment in
mining equipment driven by component change outs (US$13.6 million). Total
capital expenditure of US$93.7 million was positively impacted by a negative
non-cash reclamation adjustment of US$11.3 million, due to the increase in
risk-free interest rates. 
We have completed all the conditions required for the lifting of the
Environmental Protection Order at North Mara and have received a formal
discharge permit from the Lake Victoria Water Board. The removal of the EPO
allows ABG to discharge clean water once it has been treated in the water
treatment plant at the mine. 
Following the changes to the mine plan made in July 2013 at North Mara, the
reserve base of the asset now stands at 2.2 million ounces at a grade of 3.17
grams per tonne. 
Exploration and Development Review 
Overall, 2013 was a successful year of execution and delivery across our
greenfield and brownfield exploration projects. During the year, US$16.9
million of exploration activities were expensed, with a further amount of
US$4.0 million relating to exploration and evaluation activities being
capitalised. Key highlights include the successful drilling results from
brownfield exploration projects at Bulyanhulu from both surface and underground
drilling and from greenfield exploration programmes at our Kenyan joint venture
properties in western Kenya. 
At the Bulyanhulu mine, during the year we commenced surface and underground
brownfield exploration drilling programmes.  Surface drilling is targeting
resource extensions of the Bulyanhulu system between 400 metres and 1.2
kilometres west of the mine, while underground drilling is targeting resource
expansion of the East Zone on the Reef 2 system. By year end the drilling
programmes on the targets at Bulyanhulu had already delivered positive results
from both surface and underground drill holes.  The focus for 2014 will be to
complete the surface and underground drill programmes according to plan and
budget by Q3 2014 and assess the success of the programmes and any requirement
for further drilling. 
In Kenya, throughout the year we have continued extensive regional mapping,
soil sampling and reconnaissance Aircore geochemical drilling across our two
joint venture projects, the Advance Gold JV Properties and the West Kenya JV
Properties. These programmes will continue into 2014 and seek to identify and
advance the best targets within our large land package, so as to be positioned
to commence drill testing in 2015.  Soil sampling to date has delineated and
expanded more than 50 existing and new kilometer-scale gold-in-soil anomalies.
On the Advance Gold JV Properties we have completed drilling of Aircore holes
with over 20% of the holes assayed to date returning anomalous gold intercepts
of greater than 0.1 g/t gold. 
Additionally, in recognition of the increasing maturity of some of our
exploration properties, reduced exploration budgets, and regulatory
requirements we have embarked on a process of rationalising our exploration
portfolio in both Tanzania and Kenya.  During 2013, we reduced our land
holdings in Tanzania from 2,534sq km to 1,808 sq km, and handed over management
of several joint ventures to our partners. In Kenya, we expect to reduce our
current land holding on completion of the current regional soil sampling
programmes. We believe that through this process we will continue to focus on
the best projects within our portfolio, while at the same time free up
exploration funds to diversify our portfolio outside our current operating
areas. 
Brownfield Exploration 
In 2013, near-mine brownfield exploration successfully identified extensions to
known resources. The brownfield exploration programme was entirely focused on
the Bulyanhulu ore body where initial surface and underground diamond core
drilling has returned excellent results from step-out resource drilling on both
Reef 1 and Reef 2 mineralised systems.  
Bulyanhulu Deeps West 
In Q4 2013, we commenced drilling of three deep diamond core holes west of the
Bulyanhulu mine, targeting the extension of Reef 1 gold mineralisation. The
ongoing programme is comprised of approximately 20,000 metres of diamond core
from three parent holes with up to 25 daughter holes utilising directional
wedging and navigational drilling. The holes are predominantly testing the
extensions of the Reef 1 structure from 400 metres to 1,200 metres west of the
current Bulyanhulu resource where historic drilling has shown indications of
further gold mineralisation.  The drilling is targeting a potential new
economic zone and plunge extensions of the Main Zone of Reef 1 at depths of
between 1km and 2.5km vertical.  As at year end 2013, a total of 4,652 metres
of diamond core had been drilled from the surface holes. Two rigs are involved
in this surface drilling program, which will continue well into 2014. 
Encouragingly, the results from the first two holes to intersect Reef 1,
located approximately 400m west of the current resource area, both returned
significant intersections including: 
BGMDD0054W1: 1.64m @ 11.7g/t Au from 1,434m incl. 0.68m @ 23.8g/t Au from
1,435m 
BGMDD0054W2: 4.00m @ 8.42g/t from 1,637m incl. 1.0m @ 24.3g/t Au from 1,638m 
Additionally, these surface holes also intersected the Reef 2 structure, which
consists of multiple narrow reefs, and BGMDD0054W2 returned several significant
intersections including: 
BGMDD0054W2:  1.95m @ 26.58g/t Au from 1,033m incl. 0.57m @ 48.2g/t Au from
1,033m 
BGMDD0054W2:  1.45m @ 12.39g/t Au from 1,070m 
These holes are potentially significant in demonstrating that reserve grade
gold mineralisation and average reef widths continue west of the mine which
would open the potential for a significant expansion of the footprint of
Bulyanhulu on both Reef 1 and Reef 2. The drilling programme will continue
through 2014 and will comprise a further 15,000 metres of diamond core drilling
from the three planned drill sites. This programme will form an important part
of our assessment of how to most effectively develop the mine over the long
term. 
Bulyanhulu East Deeps Underground Drilling - Reef 2 
The East Deeps drilling programme is targeting down dip mineralisation of the
Bulyanhulu Reef 2 system which is outside the current resource model. The
programme is being drilled from several underground drill platforms and is
aimed at adding high grade gold resources on the East Zone. Drilling commenced
in Q3 2013 with a total of 2,725 metres of diamond core completed from two
holes by year end, and with the results received from one hole returning the
following significant intersections: 
UX4700-407: 1.28m @ 76.7g/t Au from 1,203m including 0.71m @ 108g/t Au from
1,204m 
Whilst the ultimate target was Reef 2 mineralisation, due to the location of
the drill pad, the hole also intersected Reef 1, returning 0.50m @ 62.8g/t Au
from 134.7m. The Reef 2 significant intersection has proved continuity at depth
of the mineralisation with high grade. Should this be confirmed by further
results, this has the potential to add significantly to the mine resource and
increase the life of mine. An additional 3 holes are targeted for completion
during early 2014 at which time the programme will be reviewed before more
drilling is undertaken. 
Greenfield Exploration 
Throughout 2013, we have continued our focus on identifying new greenfields
exploration opportunities to complement our existing exploration portfolio.
Collectively, the greenfield exploration programmes we have undertaken have
further strengthened our portfolio of exploration projects, with the potential
for new discoveries in the short to medium term.  At the same time we continue
to look throughout Africa for opportunities to further enhance and diversify
our exploration portfolio through low cost joint ventures or option
agreements.. 
In Tanzania, during the year, we continued to intersect wide zones of low grade
gold mineralisation, including several zones of higher grade mineralisation (>
2g/t Au) at the Ochuna prospect (formerly the Dett prospect) west of the North
Mara mine, and scout drilling at the Tagota prospect northwest of the North
Mara mine also intersected significant gold mineralisation. 
We have made good progress on our Kenyan joint venture projects (Advance Gold
JV and West Kenya JV) throughout the year with more than 50 gold-in-soil
anomalies generated from an extensive soil sampling programme.  In addition,
initial Aircore drilling across several gold-in-soil anomalies on the Advance
Gold JV properties has returned significant gold mineralisation, requiring
infill and follow-up drilling.  In 2014, we will continue our focus on
advancing the best early stage prospects and targets on the Kenyan joint
venture properties ready for drill testing. 


    Tanzania
    Ochuna
                                 

Ochuna is a large gold system hosted in granitic and sedimentary rocks located
approximately 45 kilometres west of the North Mara gold mine. Historic drilling
programmes intersected very wide zones of low grade mineralization (0.6-0.9g/t
gold) extending from the surface to depths greater than 300 metres. The 2013
drilling programmes targeted higher-grade zones within this anomalous gold
system. Two phases of drilling were completed during the year, with 17 reverse
circulation and diamond core holes completed for 3,280 metres. Broad zones of >
1g/t Au, including discrete, structurally controlled, higher grade zones (>1.5g
/t gold), were intersected by this drilling including:
    DTD0014 - 95m @ 1.08g/t Au from 67m,  including 41m @ 1.52g/t Au from 68m

DTD0017 - 85m @ 1.44g/t Au from 140m,  including 56m @ 1.67g/t Au from 144m

DTD0018 - 73m @ 1.84g/t Au from 181m,  including 43m @ 2.46g/t Au from 198m

DTD0019 - 111m @ 1.16g/t Au from 72m,  including 36m @ 1.51g/t Au from 94m

DTD0020 - 134m @ 1.00g/t Au from 111m,  including 26m @ 2.21g/t Au from 159m

DTD0025 - 78m @ 1.60g/t Au from 163m, including 48m @ 2.29g/t Au from 193m

DTRCD0142 - 52m @ 1.05g/t Au from 174m, including 23m @ 1.45g/t Au from 203m

DTRCD0143 - 45m @ 1.25g/t Au from 244m, including 18m @ 1.71g/t Au from 244m


Geology and mineralisation models were being updated at year end in order to
complete a preliminary global resource estimate and decide on future targeting
and drilling. 
In addition to positive drill results for 2013, preliminary metallurgical test
work was carried out by ALS Ammtec in Perth and returned encouraging results.
 Two composite samples obtained from purpose drilled HQ diamond core holes,
DTDM0021 and DTDM0022, were submitted to ALS Ammtec for gravity/leach test
work. All samples were of primary (not oxidised) mineralisation.  Leach tests
were carried out in bottle with roll agitation, and were carried out on -150,
-106, -75 and -53µm (micron) grinds.  As expected, the -75µm grind produced
optimal results including: 
Sample #1 returned a calculated head grade of 2.47g/t Au, gravity recovery of
58.2% Au, 24hr NaCN leach of 93.5% Au and tail grade of 0.16g/t Au 
Sample #2 returned a calculated head grade of 1.35g/t Au, gravity recovery
24.9% Au, 24hrs NaCN leach of 88.8% Au and tail grade of 0.16g/t Au. 
Recovery for Samples 1 and 2 after two hours were 87.4% Au and 81.2% Au
respectively, indicating that the bulk of the leachable gold is liberated very
quickly. Additionally, further test work included heap leach test work on low
grade material, however this work showed that the low grade (<1g/t Au) Ochuna
mineralisation is not amenable to heap leach processes. 
Tagota 
At the Tagota Project, approximately 35km northwest of the Gokona open pit,
initial scout drilling has returned positive drill results targeting gold
mineralisation in basement rocks beneath a varying thickness of younger
volcanic cover rocks (phonolite). Given the "blind" nature of this target
beneath up to 40 metres of cover rocks, this outcome is extremely encouraging.  
The drill programme consisted of eight reverse circulation (RC) drill holes,
and two diamond core drill holes were completed for a total of 1,477 metres.
The target is a large circular magnetic feature interpreted to be a 2.5km x
2.5km intrusive complex with artisanal mines around the exposed outer
perimeter, and thought to be a similar setting to the Ochuna gold system. 
Drilling encountered the interpreted geology, being predominantly an altered
felsic-to-intermediate intrusion (syenite) with disseminated sulphides and
interpreted stock-work style quartz veining. Gold mineralisation was
intersected in four holes close to the interpreted centre of the intrusion
adjacent to an interpreted northeast trending lineament in geophysical data,
with results including: 
TGRC0006: 63m @ 1.01g/t Au from 44m 
TGRC0007: 34m @ 1.08g/t Au from 81m 
TGRCD0009: 49m @ 0.89g/t Au from 92m including 10m @ 1.48g/t Au from 109m 
TGRCD0010: 9m @ 1.03g/t Au from 80m, including 3m @ 2.25g/t Au from 85m 
Given the limited number of holes, the very broad spaced nature of the
drilling, and the fact beneath 10-60 metres of phonolite cover was being
targeted, these results are very encouraging. Completion of several follow-up
diamond core holes adjacent to the current intersections is planned, to
investigate the potential for higher grade extensions to the mineralisation
identified to date. 
Kenya 
West Kenya Joint Venture Projects 
Exploration activities in Kenya during 2013 focused on grassroots target
generation with mapping, soil sampling, rock chip sampling and Aircore drilling
throughout the Kakamega and Lake Zone gold camps. Key highlights include the
delineation of more than 50 gold-in-soil anomalies and the confirmation of
significant gold mineralisation in Aircore drill holes which were testing some
of the gold-in-soil anomalies. Advanced drilling on several historic prospects
intersected mineralisation but confirmed they were not of an economic size and
grade targeted by ABG.       
A total of 15,656 soil samples were collected in 2013 focussing on prospective
lithologies and structures. Broad (400 metre and 800 metre) spaced grids were
undertaken with over 50 (≥ 40ppb) gold-in-soil anomalies now identified. 
Follow
up Aircore drill testing of selected soil anomalies in Kakamega Dome Gold Camp
on broad spacing (400 metre and 800 metre) commenced in the second half of 2013
with a total of 325 holes completed for 12,494 metres. Results received during
2013 included 68 significant intercepts (≥0.1 g/t Au) from composite
sampling.Notable intersections included: 
KDAC0074 3m @ 2.46 g/t Au from 5m. 
KDAC0125 3m @ 3.35 g/t Au from 29m 
KDAC0152 6m @ 30.9 g/t Au from 29m 
KDAC0161 3.5m @ 4.20 g/t Au from 47m 
During the first half of 2014 we will continue to focus on the completion of
the regional soil sampling and first-pass Aircore drilling programmes, and with
the integration of ongoing geological mapping, litho-geochemistry and ground
geophysical surveys we plan to develop priority targets for drill testing. The
highest potential targets that evolve from this process will be selected for
drill testing using reverse circulation and diamond core drilling. 
Financial Review 
The positive impact of the Operational Review and the challenging gold price
environment in 2013 is reflected in the ABG Group's financial results for the
year which are also restated to exclude Tulawaka as it is now a discontinued
operation: 
Revenue of US$929.0 million was US$82.7 million lower than 2012 driven by a 17%
decrease in the average realised gold price to US$1,377 per ounce sold
(US$1,669 per ounce sold in the prior year period), which more than offset an
increase of 66,265 ounces (11%) in sales volumes. 
Cash costs decreased to US$827 per ounce sold from US$941 in 2012, driven by
higher production, lower labour costs and higher capitalised development costs.
This was driven by the Operational Review process. 
All-in sustaining costs decreased to US$1,362 per ounce sold from US$1,585 in
2012 due to lower cash costs, sustaining capital expenditures, corporate
administration costs and partially offset by increased capitalised development
costs. 
EBITDA decreased by 29% to US$240.4 million, driven by lower revenue and
increase in other charges, partly offset by lower direct mining costs,
corporate administration costs and exploration costs. 
Adjusted net earnings of US$106.3 million, were 2% lower than 2012. Adjusted
earnings per share, mainly excluding a US$1,061.0 million non-cash impairment
adjustment, Operational Review costs and Tulawaka non-operational costs,
amounted to US25.9 cents, down from US26.5 cents in 2012. 
Operational cash flow of US$187.1 million was 30% lower than 2012, mainly due
to lower EBITDA and increased working capital investment, including the impact
of VAT relief abolishment in Q4 2012. 
The following review provides a detailed analysis of our consolidated 2013
results and the main factors affecting financial performance. It should be read
in conjunction with the condensed  financial information and accompanying notes
on pages 32 to 54, which have been prepared in accordance with International
Financial Reporting Standards as adopted for use in the European Union (IFRS).
Prior year comparative financial information has been restated for the impact
of capitalised stripping due to the adoption of IFRIC 20, 'Stripping costs in
the production phase of a surface mine' and the classification of Tulawaka as a
discontinued operation. Refer to note 5 of the consolidated financial
information for further details. 
Market overview 
Our financial results are impacted by external drivers in the form of commodity
prices, exchange rates and the cost of energy. Their impact in 2013 and our
positioning going into 2014 are set out below.     
The market price of gold has a significant impact on ABG's operating earnings
and its ability to generate cash flows. Gold price volatility was elevated
during 2013 with gold declining from a high of US$1,694 per ounce on 2nd
January to a low of US$1,192 per ounce on 28th June and closing the year at
US$1,205. Market gold prices averaged US$1,411 per ounce in 2013, a 15% decline
from the prior year average of US$1,669. 
The price of gold has been influenced by low interest rates worldwide,
investment demand and the monetary policies implemented by major world central
banks, in particular the United States. Significant Exchange traded fund
("ETF") outflows were the key directional driver in 2013 with circa 28Moz sold
out of ETFs, representing around 30% of annual mine supply. This was in part
met by strong physical demand in Asia with jewellery demand in China
contributing to one third of the world market. Gold is still viewed as a
portfolio diversifier by central banks, which now hold approximately 11% of
global bullion reserves. 
As the US economy improved during 2013, bond yields climbed, equities performed
well and the dollar appreciated which together with short-termspeculation on
how the US Federal Reserve will adjust its monetary policy, caused gold prices
to be extremely volatile during 2013. This culminated in the decision of the US
Federal Reserve to taper its bond purchase programme by US$10 billion per month
from January 2014.     


    We continued our policy of no gold hedging during 2013. 
    Copper


ABG also produces copper as a co-product which is recognised as a part of
revenue. Copper traded between US$3.01 and US$3.74 per pound in 2013. The
average market copper price for 2013 was US$3.32 compared with US$3.61 per
pound in 2012. Key external drivers of the copper prices include consumption by
China, the world's largest consumer, the US growth outlook, existing stock
levels and supply growth which is expected to peak in 2014. 
During 2013 we utilised a forward strategy whereby 75% of our estimated copper
production was hedged at an average of US$3.72 per pound, resulting in a
realised gain of US$3.3 million for the year. Utilising option collar
strategies, we have put in place floor protection on 75% of our expected copper
production for 2014 at an average floor price of US$3.12 per pound and an
average ceiling price of US$3.41 per pound. 
Fuel 
Brent Crude oil traded between US$98 and US$119 per barrel and averaged US$109
per barrel (2012: US$112 per barrel). We consumed approximately 610,000 barrels
of diesel in 2013 (2012: 625,000). Diesel fuel is refined from crude oil and is
therefore subject to the same price volatility affecting crude oil prices and
has a significant impact on our production costs. Crude oil has been impacted
by political instability which has resulted in supply outages most notably in
Iran and Northern Africa which was in part offset by increased US production
and OPEC's ability to balance supply through Saudi Arabia. Our overall oil
exposure is heavily impacted by grid power reliability across all three
operations and mining activity at our open pit mines. During 2013 we utilised
an option collar strategy to hedge 75% of our estimated diesel consumption at
an average floor price of US$89 per barrel and average capped price of US$109
per barrel. In 2014 we have continued this strategy and put in place protection
on approximately 33% of our expected 2014 consumption with an average floor and
capped price of US$88 and US$105 per barrel respectively. 
Currency Exchange rates 
A portion of ABG's expenditure is incurred in currencies other than US dollars.
The exposure relating to other currencies is approximately 28% of the company's
total expenditure, of which the main contributing currencies are the Tanzanian
shilling and the South African rand. In 2013, the rand declined significantly
against the US dollar as the US dollar strengthened, domestic factors persisted
and investors shunned riskier rand-denominated assets. The Tanzanian shilling
remained relatively unchanged as the Bank of Tanzania imposed exchange controls
throughout the year. 
We have put in place floor protection on approximately 75% and 20% of our
expected rand operating expenditures for 2014 and 2015 respectively, with
average floors of ZAR9.60 and ZAR10.43. In light of potential rand weakness we
have average ceilings of ZAR11.03 and ZAR12.80 for 2014 and 2015 respectively.
Hedges in relation to the Bulyanhulu CIL Expansion project for 2014 have an
average floor protection of ZAR8.90 and ceiling protection of ZAR9.80. These
hedges are in place until April 2014. 


    Financial performance
    Discontinued operation - Tulawaka


On 15 November 2013, ABG announced that an agreement was reached with STAMICO,
the Tanzanian State Mining Corporation, whereby STAMICO will acquire the
Tulawaka Gold Mine ("Tulawaka") and certain exploration licenses surrounding
Tulawaka for a consideration of US$4.5 million and the grant of a 2% net
smelter royalty on future production in excess of 500,000 ounces, capped at
US$500,000. As part of the agreement, STAMICO will take ownership and
management of the rehabilitation fund established as part of the closure plan
for the mine, in return for the assumption of all remaining past and future
closure and rehabilitation liabilities for Tulawaka, and will indemnify the
other parties to the agreement in relation to these liabilities. This resulted
in a cash payment by ABG to STAMICO of the balance of the rehabilitation fund,
less the transaction consideration on completion. Tulawaka is 100% owned by the
Tulawaka Joint Venture, in which ABG holds a 70% economic interest through a
wholly owned subsidiary, with MDN Inc holding the remaining 30% of the Joint
Venture. Production at Tulawaka ceased in Q2 2013. The transaction completed on
4 February 2014, resulting in a cash payment of US$11.6 million to STAMICO. 
The financial results of Tulawaka have been presented as discontinued
operations in the consolidated financial statements. The comparative results in
the consolidated income statement have been presented as if Tulawaka had been
discontinued from the start of the comparative period, effectively excluding
the net result relating to Tulawaka from individual income statement lines and
aggregating it in one line called "Loss from discontinued operation". The
assets and liabilities that are to be sold to STAMICO have been presented as
held for sale. Below is a reconciliation showing Group financial performance on
a line by line basis. 
                                                         Year ended 31 
December 2013       


                                                                                
           
                                                      Continuing  Discontinued  
           


                                                  operations   operations   
  Total     
                                                                             
       
Revenue                                                   929,004       13,514   
942,518  
                                                                             
       
Cost of sales                                           (713,806)     (30,368)  
 (744,174)  
                                                                             
       
Gross profit/(loss)                                       215,198     (16,854)   
198,344  
                                                                             
       
Corporate administration                                 (32,157)      (1,311)  
  (33,468)  
                                                                             
       
Exploration and evaluation costs                         (16,927)            -  
  (16,927)  
                                                                             
       
Corporate social responsibility expenses                 (12,237)      (3,259)  
  (15,496)  
                                                                             
       
Impairment charges                                    (1,044,310)     (16,701) 
(1,061,011)  
                                                                             
       
Other charges                                            (30,424)     (19,442)  
  (49,866)  
                                                                             
       
(Loss)/profit before net finance expense and taxation   (920,857)     (57,567)  
 (978,424)  
                                                                             
       
Finance income                                              1,670           30   


     1,700 
                                                                                


       
Finance expense                                           (9,552)        (116)   
(9,668)  
                                                                             
       
(Loss)/ profit before taxation                          (928,739)     (57,653)  
 (986,392)  
                                                                             
       
Tax credit/ (expense)                                     187,959            -   
187,959  
                                                                             
       
Net (loss)/ profit for the year                         (740,780)     (57,653)  
 (798,433)  


                                                                                
           


                                                        Year ended 31 December 
20121    


                                                                                
        
                                                       Continuing Discontinued  
        


                                                   operations  operations   
 Total   
                                                                             
    
Revenue                                                 1,011,738       75,601 
1,087,339 
                                                                             
    
Cost of sales                                           (720,036)     (77,823) 
(797,859) 
                                                                             
    
Gross profit/(loss)                                       291,702      (2,222)  
 289,480 
                                                                             
    
Corporate administration                                 (47,640)      (3,928)  
(51,568) 
                                                                             
    
Exploration and evaluation costs                         (26,752)      (2,208)  
(28,960) 
                                                                             
    
Corporate social responsibility expenses                 (13,051)      (1,394)  
(14,445) 
                                                                             
    
Impairment charges                                              -     (44,536)  
(44,536) 
                                                                             
    
Other charges                                            (17,071)        (600)  
(17,671) 
                                                                             
    
(Loss)/profit before net finance expense and taxation     187,188     (54,888)  
 132,300 
                                                                             
    
Finance income                                              2,056           46   
2,102 
                                                                             
    
Finance expense                                          (10,079)        (226)  
(10,305) 
                                                                             
    
(Loss)/ profit before taxation                            179,165     (55,068)  
 124,097 
                                                                             
    
Tax credit/ (expense)                                    (78,693)        6,089  
(72,604) 
                                                                             
    
Net (loss)/ profit for the year                           100,472     (48,979)  
  51,493 
                                                                             


        

1 Restated for the impact of capitalised stripping due to the adoption of IFRIC
20 and the classification of Tulawaka as a discontinued operation.
    The financial performance below is stated for continuing operations.
    Revenue


Revenue for the year of US$929.0 million was 8% lower than the prior year
period of US$1,011.7 million. Year-on-year realised gold prices decreased by
18% to US$1,377 per ounce sold from US$1,669 in 2012, which more than offset
the higher sales volumes of 66,265 ounces. The increase in sales ounces was
primarily due to the higher production base and sale of opening stock on hand
from 2012. 
Included in total revenue was co-product revenue of US$43.0 million for the
year, which decreased by 10% from the prior year (US$48.0 million) due to the
lower copper prices as similar volumes were sold than in 2012 . The 2013
average realised copper price of US$3.24 per pound compared unfavourably to the
prior year of US$3.57 per pound, and was driven by global market factors
regarding supply and demand. 
Cost of sales 
Cost of sales was US$713.8 million for the year ended 31 December 2013,
representing a decrease of 1% on the prior year period (US$720.0 million). The
key aspects impacting the cost of sales during the year were: 


    Lower direct mining costs as a result of:

  Increased capitalised development costs as Buzwagi and North Mara focused on
the removal of waste in    order to access higher grade zones in the first half
of the year;

Lower labour costs due to the impact of the Operational Review;

Lower shared services costs back charges, lower travel costs and lower camp
costs all as a result of savings materialised through the Operational Review;

This was partially offset by:

Increased warehouse related costs driven by inventory drawdown, mainly at
Buzwagi, and increased inventory obsolescence provisions at North Mara and
Bulyanhulu; and

Increased contracted services costs at North Mara due to the increased mining
activity, and at Buzwagi due to increased mining activity in H1 2013; and

Lower third party smelting and refining fees at Bulyanhulu due to the lower
concentrate production in combination with lower negotiated costs, partly
offset by an increase in concentrate production at Buzwagi.
    The table below provides a breakdown of cost of sales:
                                        Three months   


                                      ended 31     
(US$'000)                                 December      
                                                   
(Unaudited)                               2013   20121  
                                                   
Cost of Sales                                           
                                                   
Direct mining costs                    126,826 138,251  
                                                   
Third party smelting and refining fees   5,160   4,437  
                                                   
Royalty expense                          9,396  12,695  
                                                   
Depreciation and amortisation           28,388  43,032  
                                                   
Total                                  169,770 198,415  


                                                       
                                                          


                                     Year ended 31 
(US$'000)                                  December     
                                                   
(Unaudited)                                2013   20121 
                                                   
Cost of Sales                                           
                                                   
Direct mining costs                     508,166 521,338 
                                                   
Third party smelting and refining fees   16,790  18,005 
                                                   
Royalty expense                          40,871  41,078 
                                                   
Depreciation and amortisation           147,979 139,615 
                                                   
Total                                   713,806 720,036 


                                                       

1 Restated for the impact of capitalised stripping due to the adoption of IFRIC
20 and the classification of Tulawaka as a discontinued operation.
    A detailed breakdown of direct mining expenses is shown in the table below:
                                                                                


 
(US$'000)                    Three months ended 31 December   Year ended 31 
December  
                                                                             
 
(Unaudited)                            2013            20121         2013       
20121 
                                                                             
 
Direct mining costs                                                              


     
                                                                                


 
Labour                               36,757           41,042      152,870     
158,658 
                                                                             
 
Energy and fuel                      30,565           35,930      133,797     
129,992 
                                                                             
 
Consumables                          24,612           26,187      104,188     
101,151 
                                                                             
 
Maintenance                          21,970           22,436       90,926      
89,120 
                                                                             
 
Contracted services                  24,723           22,545       96,957      
83,134 
                                                                             
 
General administration costs         27,842           20,609       92,902      
77,947 
                                                                             
 
Capitalised mining costs           (39,643)         (30,498)    (163,474)   
(118,664) 
                                                                             
 
Total direct mining costs           126,826          138,251      508,166     
521,338 
                                                                             
  
1 Restated for the impact of capitalised stripping due to the adoption of IFRIC
20 and the classification of Tulawaka as a discontinued operation. 
Direct mining costs of US$508.2 million were 3% lower than 2012 of US$521.3
million. Individual cost components comprised: 
Labour costs were 4% lower in 2013, mainly as a result of the lower headcount,
specifically international employees, at Buzwagi driven by localisation efforts
and the impact of the Operational Review, and lower overtime costs at
Bulyanhulu driven by labour optimisation. 
Energy and fuel expenses increased by 3% from 2012, driven primarily by
increased mining activity at North Mara and Buzwagi and increased throughput at
Buzwagi. 
Consumables costs increased by 3% primarily due to increased reagents and
chemicals consumption as a result of higher throughput at Buzwagi, and mining
consumables costs at North Mara driven by the increased mining activity, partly
offset by lower consumables usage as a result of the lower development activity
at Bulyanhulu and lower unit costs negotiated. 
Maintenance costs increased by 2% primarily driven by increased mining activity
at North Mara partly offset by lower development activity at Bulyanhulu. 
Contracted services increased by 17%, mainly driven by increased MARC charges
at North Mara, as a result of the increased mining activity, and increased MARC
costs at Buzwagi due to the increased mining activity in H1 2013. A saving was,
however, achieved in H2 2013 at Buzwagi due to the reduced mine plan and the
renegotiated maintenance rates associated with MARC contracts. 
General administration costs increased by 19%, mainly at Buzwagi driven mainly
by freight costs associated with inventory consumed and at North Mara and
Bulyanhulu due to the aging of supplies resulting in an increase in the stock
obsolescence provision. This was partially offset by lower shared services cost
back charges, lower travel and aviation costs and lower camp costs driven by
savings materialised from the Operational Review. 
Capitalised direct mining costs, which consists of capitalised development
costs and the change in inventory charge, is made up as follows: 
                                                                                
                            
(US$'000)                                Three months ended 31 December          
Year ended 31 December        
                                                                             
                            
(Unaudited)                                              2013        20121       


    2013                   2012
                                                                                


                            
Capitalised direct mining costs                                                  


                                
                                                                                


                            
Capitalised development costs                        (35,254)     (27,751)     
(173,245)               (116,994) 
                                                                             
                            
(Investment in)/ drawdown of inventory                (4,389)      (2,747)       
9,771                 (1,670) 
                                                                             
                            
Total capitalised direct mining costs                (39,643)     (30,498)     
(163,474)               (118,664) 
                                                                             


                                

1 Restated for the impact of capitalised stripping due to the adoption of IFRIC
20 and the classification of Tulawaka as a discontinued operation..

Capitalised development costs were 48% higher than 2012, as North Mara, and
Buzwagi  focused on the removal of waste in order to access higher grade zones
in the first part of the year. This was partly offset by lower waste stripping
at Buzwagi in the second half of the year as a result of the implementation of
the reduced mine plan; this resulted in a reduction in the strip ratio. The
drawdown in inventory was US$11.4 million higher than in 2012 due to the lower
average cost valuation as a result of lower direct mining costs in 2013, and
the drawdown of ore and gold in circuit ounces at Buzwagi due to the higher
throughput in H1 2013.
    Corporate administration costs


Corporate administration expenses totalled US$32.2 million for the year ended
31 December 2013. This equated to a 33% decrease from the prior year period of
US$47.6 million. The decrease is predominantly due to the impact of the
Operational Review which led to corporate offices and lower share based payment
expenses given the overall lower share price performance as shown in the table
below. 
                           Three months ended 31 December  Year ended 31 
December 
                                                                             
 
(US$'000)                               2013            20121          2013     
20121 
                                                                             
 
(Unaudited)                                                                      


     
                                                                                


 
Corporate administration costs         8,178           10,669        33,705    
44,514 
                                                                             
 
Stock based compensation                 625            1,860       (1,813)     
2,359 
                                                                             
 
World Gold Council fees                   95              202           265     
  767 
                                                                             
 
Total corporate administration         8,898           12,731        32,157    
47,640 
                                                                             


     

1 Restated for the classification of Tulawaka as a discontinued operation.
    Exploration and evaluation costs


For 2013, US$16.9 million was incurred, 37% lower than the US$26.8 million
spent in 2012. The decrease reflects an overall reduction in exploration spend
and a focus on key projects. The key focus areas for the year were exploration
programmes at the West Kenya Joint Venture project (US$4.4 million), drilling
at North Mara focusing on the Ochuna projects (US$2.7 million), drilling at
Bulyanhulu deep central reefs 1 and 2 (US$3.0 million), Nyanzaga (US$0.8
million) and project feasibility study costs (US$1.3 million). In addition,
exploration and evaluation costs of US$4.0 million have been capitalised in
2013 (2012: US$13.7 million). 
Corporate social responsibility expenses 
Corporate social responsibility expenses costs incurred amounted to US$12.2
million for the year compared to the prior year of US$13.1 million. During the
year we have seen increased investment in site focused projects specifically
related to Village Benefit Implementation Agreements ("VBIAs") at North Mara
and larger contributions to general community projects funded from the ABG
Maendeleo Fund. Of the total spend for 2013, US$8.6 million was spent on ABG
Maendeleo Fund projects (US$3.6 million in 2012) and US$4.3 million was spent
on VBIA's at North Mara (US$3.5 million in 2012). Included in the loss from
discontinued operations is US$3.3 million relating to Tulawaka, mainly as a
result of ABG Maendeleo Fund projects (US$1.4 million in 2012). This was
incurred through the construction of dams and water facilities, school
facilities and roads. In total, corporate social responsibility expenses amount
to US$15.5 million (2012: US$14.4 million), of which US$11.3 million (2012:
US$3.6 million) relates to ABG Maendeleo Fund projects. 
Other charges 
Other charges amounted to US$30.4 million for the year, 78% higher than 2012
(US$17.1 million). The main contributors to the charge were: (i) costs relating
to the Operational Review, including external services and retrenchment costs
of US$13.3 million; (ii) residual expenses incurred as a part of the CNG offer
process totalling US$3.2 million, the bulk of which were incurred in H1 2013;  
(iii) disallowed indirect tax claims and other indirect tax related expenses of
US$1.5 million as part of the continued reconciliation process with the TRA and
retrospective legislation changes; (v) ABG's entry into zero cost collar
contracts as part of a programme to protect it against copper, silver, rand and
fuel cost market volatility and, due to the fact that these do not qualify for
hedge accounting, resulted in a combined mark-to-market revaluation loss of
US$7.2 million, mainly due to the devaluation of the Rand; (vi) legal costs of
US$3.1 million; and (vii) discounting adjustments of long term indirect taxes
of US$1.4 million. The impact of the hedge loss above was partially offset by
cost savings on certain Rand denominated cost elements due to the weakening of
the Rand. Included in the loss from discontinued operations are other charges
of US$19.4 million relating mainly to non-operational costs of US$15.1 million
and retrenchment costs of US$3.0 million, both relating to Tulawaka. Refer to
note 10 of the consolidated financial statements. 
Finance expense and income 
Finance expense of US$9.6 million was 5% lower than 2012 (US$10.1 million) due
to lower volumes of discounted concentrate shipments. The key drivers were
US$3.1 million (US$3.0 million in 2012) relating to the servicing of the US$150
million undrawn revolving credit facility, and accretion expenses relating to
the discounting of the environmental reclamation liability (US$4.5 million).
Other costs include bank charges and interest on finance leases. Interest costs
relating to the project financing on the CIL Expansion project are capitalised
to the cost of the asset due to the facility being directly attributable to the
asset. During 2013 US$2.4 million of borrowing costs have been capitalised to
the project. 
Finance income relates predominantly to interest charged on non-current
receivables and interest received on money market funds. Refer to note 11 of
the consolidated financial statements for details. 
Impairment charges 
As a result of the substantial decrease in the gold price during 2013, the gold
price used to calculate the carrying value of our assets as well as the
reserves and resources estimations was reduced to US$1,300 per ounce sold. In
addition, we also made changes to the mine plans at each of our assets,
resulting in reduced mine lives at both Buzwagi and North Mara. This required
us to review each of our cash generating units (CGUs) for any impairment
trigger and to reassess the operating performance of each CGU in order to
ensure optimised returns and cash flows in the lower gold price environment.
Each of the operating mines and the exploration business are classified as
separate CGUs. The impairment review resulted in a post tax impairment to the
long-lived assets at Buzwagi of US$529.7 million and supplies inventory of
US$13.0 million (2012: no impairment charge) and at North Mara in a post-tax
impairment to goodwill of US$21.0 million, long lived assets of US$193.4
million and supplies of US$10.0 million (2012: no impairment charge). In
addition, the goodwill and acquired exploration potential intangible asset that
arose on the acquisition of Tusker Gold Ltd, and subsequent investment in the
asset, has been impaired by US$22.0 million and US$24.6 million respectively. 
On a gross basis, and before taking into account the impact of deferred tax,
the total impairment charge amounted to US$690.5 million at Buzwagi, US$307.3
million at North Mara and US$46.6 million relating to Nyanzaga. Refer to note 8
of the consolidated financial statements for details. 
Taxation matters 
The taxation credit increased to US$188.0 million for the year, compared to a
charge of US$78.7 million in 2012. The 2013 credit consists predominantly of
deferred tax. The increased tax credit was driven by the tax impact of US$238.0
million relating to impairment charges as discussed above. This was partially
offset by net deferred tax charges of US$50.0 million. The effective tax rate
in 2013 amounted to 20% compared to 44% in 2012. The decrease is mainly driven
by temporary differences (including tax losses) of US$84.9 million for which no
deferred income tax assets were recognised, primarily relating to Buzwagi, ABG
Exploration Ltd and ABG Plc stand alone assessed losses. 
Net earnings from continuing operations 
As a result of the factors discussed above, the net loss from continuing
operations for the year  was US$740.8 million, against the prior year period
profit of US$100.5 million. Decreased revenue and increased impairment and
other charges as explained above contributed to the variance. This was offset
by lower corporate administration and exploration and evaluation costs.
Adjusted earnings, after excluding impairment and other one-off type charges,
amounted to US$106.3 million, in line with the prior year period. The net loss
from discontinued operations amounted to US$57.7 million (US$17.3 million
relating to non-controlling interests) for the year ended 31 December 2013,
against the prior year net loss of US$49.0 million (US$11.3 million relating to
non-controlling interests). This resulted in a total net loss for the Group of
US$781.1 million (US$62.8 million profit in 2012). 
Loss per share 
The loss per share for the year ended 31 December 2013 from continuing
operations amounted to US180.6 cents, a decrease of US205.1 cents from the
prior year period earnings of US24.5 cents. The decrease was driven by an
increased net loss with no change in the underlying issued shares. Adjusted net
earnings of US25.9 cents per share, after excluding impairment and other
one-off type charges, was 2% lower than the prior year period. 
Key financial performance indicators and reconciliations 
Cash costs 
With respect to cash costs per ounce sold in the year ended 31 December 2013,
there was a 12% decrease from the comparable period in 2012 from US$941 per
ounce sold to US$827 per ounce sold. Refer to the operating overview on page10
and cost of sales explanations as part of the financial review detailing the
year-on-year change. 
The table below provides a reconciliation between cost of sales and total cash
cost to calculate the cash cost per ounce sold. 
                                                   Three months        Year 
ended 31   
(US$'000)                                            ended 31 December       
December       
                                                                             
       
(Unaudited)                                              2013    20121       
2013     20121 
                                                                             
       
Total cost of sales                                   169,770  198,415    
713,806   720,036 
                                                                             
       
Deduct: depreciation and amortisation                (28,388) (43,032)  
(147,979) (139,615) 
                                                                             
       
Deduct: co-product revenue                           (11,181) (12,801)   
(43,014)  (47,888) 
                                                                             
       
Total cash cost                                       130,201  142,582    
522,813   532,533 
                                                                             
       
Total ounces sold2                                    168,167  154,370    
643,597   577,332 
                                                                             
       
Cash cost per ounce                                       774      924        
812       922 
                                                                             
       
Additional contribution from discontinued operations        -       34         
15        19 
                                                                             
       
Attributable cash cost per ounce3                         774      958        
827       941 


                                                                                
           


1 Restated for the impact of capitalised stripping due to the adoption of IFRIC
20 and the classification of Tulawaka as a discontinued operation. 
2  Reflects 100% of ounces sold from continuing operations. 
3 Cash cost per ounce is a non-IFRS financial performance measure with no
standard meaning under IFRS. Refer to "Non IFRS measures"' on page 28 for
definitions. 
Refer to note 6 to the consolidated financial information for a reconciliation
to all-in sustaining costs per ounce sold. 
EBITDA 
EBITDA for the year ended 31 December 2013 decreased by 29% to US$240.4 million
compared to the prior year period of US$336.3 million as a result of the lower
revenue base and increased other charges. A reconciliation between net profit
for the period and EBITDA is presented below: 
                                 Three months ended 31                       
 
(US$'000)                                  December           Year ended 31 
December  
                                                                             
 
(Unaudited)                                2013       20121        2013         
20121 
                                                                             
 
Net(loss)/ profit for the period      (100,342)    (46,043)   (798,433)        
51,493 
                                                                             
 
Plus income tax (credit)/ expense      (19,232)      27,146   (187,959)        
72,604 
                                                                             
 
Plus depreciation and amortisation       29,258      47,676     157,820       
159,446 
                                                                             
 
Plus: Impairment charges/write-offs     133,320      44,223   1,061,011        
44,536 
                                                                             
 
Plus finance expense                      2,476       2,565       9,668        
10,305 
                                                                             
 
Less finance income                       (614)       (428)     (1,700)       
(2,102) 
                                                                             
 
EBITDA2                                  44,866      75,139     240,407       
336,282 


                                                                                
     


1 Restated for the impact of capitalised stripping due to the adoption of IFRIC
20. 
2 EBITDA is a non-IFRS financial performance measures with no standard meaning
under IFRS. Refer to "Non IFRS measures"' on page 28 for definitions. 
Adjusted net earnings 
In 2013 ABG has calculated adjusted net earnings by excluding one-off costs or
credits relating to non-routine transactions from net profit attributed to
owners of the parent. 
Adjusted net earnings and adjusted earnings per share have been calculated by
excluding the following: 
(US$'000)                            Three months ended 31 December  
                                                                  
  (Unaudited)                                           2013    20121  
                                                                  
  Net (loss)/ earnings                              (97,700) (34,753)  
                                                                  
  Adjusted for:                                                        
                                                                  
  Impairment charges                                 133,320   44,536  
                                                                  
  Operational review charges                           6,132        -  
                                                                  
  Tulawaka non-operational costs, including                           
  de-recognition of deferred tax                       9,469        -  
                                                                  
  CNG related costs                                      614    6,676  
                                                                  
  Discounting of indirect taxes                            -    4,185  
                                                                  
  Prior year Bulyanhulu tax positions recognised           -    8,855  
                                                                  
  Tax impact of the above                           (23,944) (18,239)  
                                                                  
  Adjusted net earnings                               27,891   11,260  


                                                                      
     (US$'000)                                             Year ended 31 December  
      
                                                                                


  
  (Unaudited)                                                            2013   
 20121 
                                                                             
  
  Net (loss)/ earnings                                              (781,101)   
62,780 
                                                                             
  
  Adjusted for:                                                                  


      
                                                                                


  
  Impairment charges                                                1,061,011   
44,536 
                                                                             
  
  Operational review charges                                           13,251    


     -
                                                                                


  
  Tulawaka non-operational costs, including                                      
  
  de-recognition of deferred tax                                       35,418    


     -
                                                                                


  
  CNG related costs                                                     4,145   
 6,676 
                                                                             
  
  Discounting of indirect taxes                                         1,375   
 4,185 
                                                                             
  
  Prior year Bulyanhulu tax positions recognised                            -   
 8,855 
                                                                             
  
  Tax impact of the above                                           (227,822) 
(18,239) 
                                                                             
  
  Adjusted net earnings                                               106,277  
108,793 


                                                                                
      


1 Restated for the impact of capitalised stripping due to the adoption of IFRIC
20. 
2 Adjusted net earnings is a non-IFRS financial performance measures with no
standard meaning under IFRS. Refer to "Non IFRS measures"' on page 28 for
definitions. 
Adjusted net earnings per share for the Group for the full year 2013 amounted
to US25.9 cents compared to US26.5 cents in 2012. 
Financial position 
ABG had year-end cash and cash equivalents of US$282.4 million (US$401.3
million in 2012). The Group's cash and cash equivalents are with counterparties
whom the Group considers to have an appropriate credit rating. Location of
credit risk is determined by physical location of the bank branch or
counterparty. Investments are held mainly in United States dollars and cash and
cash equivalents in other foreign currencies are maintained for operational
requirements. 
In January 2013 we concluded negotiations with a group of commercial banks
(Standard Bank, Standard Chartered, and ABSA) for the provision of an export
credit backed term loan facility ("Facility") for an amount of US$142 million.
The Facility has been put in place to fund a substantial portion of the
construction costs of the new Bulyanhulu CIL Expansion project ("Project"). 
The Facility is collateralised by the Project, has a term of seven years and,
the spread over Libor is 250 basis points. The Facility is repayable in equal
instalments over the term of the Facility after a two year repayment holiday
period. The interest rate has been fixed at an effective rate of 3.6% through
the use of an interest rate swap. The interest charged on the facility is
capitalised to the project until the project has been successfully
commissioned. The full value of the Facility has been drawn as at year end. Net
cash amounted to US$140.4 million, after deducting the CIL finance facility. 
The above compliments the existing undrawn revolving credit facility of US$150
million which runs until November 2016. 
Goodwill and intangible assets decreased by US$67.6 million from December 2012
due to impairment charges relating to Nyanzaga and North Mara. 
The net book value of property, plant and equipment decreased from US$2.0
billion in December 2012 to US$1.3 billion in December 2013. The main capital
expenditure drivers have been explained in the cash flow used in the investing
activities section below, and have been offset by depreciation charges of
US$141.2 million and pre-tax impairment charges of US$906.8 million at Buzwagi,
North Mara and Tulawaka. Refer to notes 8 and 14 to the consolidated financial
statements for detail. 
Total indirect tax receivables, net of a discount provision applied to the
non-current portion, increased from US$98.8 million at 31 December 2012 to
US$159.8 million at 31 December 2013. The increase was mainly due to the impact
of VAT relief abolishment in Q4 2012 resulting in a build-up of indirect tax
receivables of about US$61.0million (after offsetting refunds of US$32.4
million). The net deferred tax position decreased from a liability of US$172.7
million as at 31 December 2012 to an asset of US$14.9 million. This was mainly
driven by the reduction in deferred tax liabilities as a result of the
impairments at North Mara, Buzwagi and Tusker/Nyanzaga which decreased the net
asset base. The tax effect on the tax losses carried forward is an increase
from US$319.5 million as at 31 December 2012 to US$355.8 million. US$84.9
million of deferred tax assets were not recognised as at 31 December 2013 of
which US$59.4 million relates to Buzwagi as a result of the change in the life
of mine plan  which reduced taxable income. 
Net assets attributable to owners of the parent decreased from US$2.8 billion
in December 2012 to US$1.9 billion in December 2013. The decrease reflects the
current year loss attributable to owners of the parent of US$781.1 million and
the payment of the final 2012 and 2013 interim dividends of US$54.5 million to
shareholders during 2013. 


    Cash flow generation and capital management
    Cash flow - continuing and discontinued operations
                                                     For the three                 
           


                                             months ended 31        For the 
year ended  
                                                 December              31 
December      
                                                                             
       
(US$'000)                                                                        


           
                                                                                


       
(Unaudited)                                         2013     20121    2013 
20121            
                                                                             
       
Cash flow from operating activities               48,193    96,372      187,115 
  268,733   
                                                                             
       
Cash used in investing activities               (84,865) (144,655)    (386,850) 
(371,485)   
                                                                             
       
Cash provided by/(used in) financing activities   30,487   (2,611)       82,322 
 (79,439)   
                                                                             
       
Decrease in cash                                 (6,185)  (50,894)    (117,413) 
(182,191)   
                                                                             
       
Foreign exchange difference on cash                 (69)     (205)      (1,526)  


    (615)  
                                                                                


       
Opening cash balance                             288,663   452,447      401,348 
  584,154   
                                                                             
       
Closing cash balance                             282,409   401,348      282,409 
  401,348   
                                                                             
        
1 Restated for the impact of capitalised stripping due to the adoption of IFRIC
20. 
Cash flow from operating activities was US$187.1 million for the year, a
decrease of US$81.6 million, when compared to the prior year (2012: US$ 268,733
million). The decrease primarily related to decreased EBITDA combined with an
outflow associated with working capital of US$41.2 million. The working capital
movement related to an increase in other current assets of US$34.5 million
mainly driven by high VAT receivables owed from the Tanzanian government and a
decrease in trade payables of US$32.1 million due to the lower overall cost
base and the payment of Tulawaka related payables.  This was offset by a
decrease in gold inventory on hand of US$23.7 million, excluding the non-cash
impairment, mainly due to the lower average cost valuation as a result of lower
direct mining costs; a decrease in trade receivables of US$20.0 million mainly
due to the lower gold price and the timing of concentrate shipments; and a
drawdown on supplies US$10.8 million driven by the inventory optimisation
process. 
Cash flow used in investing activities was US$386.9 million for the year. Total
cash capital expenditure for the year of US$373.1 million increased by 15% from
the prior year (2012: US$323.5 million), driven by both increased expansion
capital expenditure related to the Bulyanhulu CIL Expansion project and
increased capitalised development expenditure, slightly offset by lower
sustaining capital expenditure. 
A breakdown of total capital and other investing capital activities for the
year ended is provided below: 
(US$'000)                                            For the year ended 31 
December   
                                                                             
 
(Unaudited)                                                      2013           
20124 
                                                                             
 
Sustaining capital                                             84,474         
153,158 
                                                                             
 
Expansionary capital                                          117,469          
49,889 
                                                                             
 
Capitalised development                                       171,158         
120,458 
                                                                             
 
Total cash capital                                            373,101         
323,505 
                                                                             
 
Non-cash rehabilitation asset adjustment                     (30,740)          
19,242 
                                                                             
 
Non-cash sustaining capital3                                   11,967           
8,380 
                                                                             
 
Total capital expenditure                                     354,328         
351,127 
                                                                             
 
Other investing capital                                                          


     
                                                                                


 
- AMKL acquisition1                                                 -          
22,039 
                                                                             
 
- Non-current asset movement2                                  13,749          
25,941 


                                                                                
     


1 The AMKL acquisition relates to the acquisition of the subsidiary, net of
cash for US$22.0 million (inclusive of exploration funding US$1.3 million).  
2 Non-current asset movements relates to the investment in the land
acquisitions reflected as prepaid operating leases and Tanzania government
receivables. 
3 Total non-cash sustaining capital relates to the capital finance leases at
Buzwagi for drill rigs and also includes capital accruals excluded from cash
sustaining capital. 
4 Restated for the impact of capitalised stripping due to the adoption of IFRIC
20. 
 Sustaining capital 
Sustaining capital expenditure included the investment in mine equipment of
US$37.7 million, which mainly related to component change outs at North Mara
and Buzwagi, critical underground equipment at Bulyanhulu, and investment in
tailings and infrastructure at Bulyanhulu (US$10.7 million), North Mara
(US$14.7 million) and Buzwagi (US$15.7 million). 
Expansionary capital 
Expansionary capital expenditure consisted of the Bulyanhulu CIL Expansion
project of (US$104.9 million), investment in equipment (US$5.2 million) and
capitalised exploration and evaluation costs (US$4.2 million) mainly relating
to the Bulyanhulu. 
Capitalised development 
Capitalised development capital includes capitalised stripping for North Mara
(US$65.6 million) and Buzwagi (US$60.1 million) and Bulyanhulu capitalised
underground development of US$45.4 million. 
Non-cash capital 
Non-cash capital for the year was a credit of US$18.8 million and consisted of
negative reclamation asset adjustments (US$30.7 million), offset by the
year-on-year increase in capital accruals (US$10.0 million) and capital finance
leases related to drill rigs at Buzwagi (US$1.9 million). The reclamation
adjustments were driven by lower US risk free rates driving lower discount
rates, and lower closure cost estimates, and was slightly offset by additional
disturbance as a result of mining activity during the year. 
Other investing capital 
During the year North Mara incurred land purchases totalling US$15.5 million
and Bulyanhulu incurred land purchases of US$1.0 million. This was offset by a
reduction in other long term assets of US$2.8 million. 
Cash flow from financing activities for the year ended 31 December 2013 was
US$82.3 million, an increase of US$161.7 million on the prior year (US$79.4
million outflow). The inflow primarily relates to the drawdown on the
Bulyanhulu CIL Expansion project debt facility of US$142.0 million, offset by
the payment of the 2012 final and 2013 interim dividends of US$54.5 million and
finance lease payments of US$5.1 million. 
Dividend 
An interim dividend of US1.0 cents per share was paid to shareholders on 23
September 2013. The Directors recommend the payment of a final dividend of
US2.0 cents per share, subject to the shareholders approving this
recommendation at the AGM. 
Significant judgements in applying accounting policies and key sources of
estimation uncertainty 
Many of the amounts included in the consolidated financial statements require
management to make judgements and/or estimates. These judgements and estimates
are continuously evaluated and are based on management's experience and best
knowledge of the relevant facts and circumstances, but actual results may
differ from the amounts included in the consolidated financial information
included in this release. Information about such judgements and estimation is
included in the accounting policies and/or notes to the consolidated financial
statements, and the key areas are summarised below. 
Areas of judgement and key sources of estimation uncertainty that have the most
significant effect on the amounts recognised in the consolidated financial
statements include: 


    Estimates of the quantities of proven and probable gold reserves;

The capitalisation of production stripping costs;

The capitalisation of exploration and evaluation expenditures;

Review of goodwill, tangible and intangible assets' carrying value, the
determination of whether these assets are impaired and the measurement of
impairment charges or reversals;

The estimated fair values of cash generating units for impairment tests,
including estimates of future costs to produce proven and probable reserves,
future commodity prices, foreign exchange rates and discount rates;

The estimated useful lives of tangible and long-lived assets and the
measurement of depreciation expense;

Property, plant and equipment held under finance leases;

Recognition of a provision for environmental rehabilitation and the estimation
of the rehabilitation costs and timing of expenditure;

Whether to recognise a liability for loss contingencies and the amount of any
such provision;

Whether to recognise a provision for accounts receivable and the impact of
discounting the non-current element;

Recognition of deferred income tax assets, amounts recorded for uncertain tax
positions, the measurement of income tax expense and indirect taxes;

Determination of the cost incurred in the productive process of ore stockpiles,
gold in process, gold doré/bullion and concentrate, as well as the associated
net realisable value and the split between the long term and short term
portions;

Determination of fair value of derivative instruments; and

Determination of fair value of stock options and cash-settled share based
payments.
    Going concern statement


The ABG Group's business activities, together with factors likely to affect its
future development, performance and position are set out in the operational and
financial review sections of this report. The financial position of the ABG
Group, its cash flows, liquidity position and borrowing facilities are
described in the preceding paragraphs of this financial review. 
At 31 December 2013, the Group had cash and cash equivalents of US$282.4
million with a further US$150 million available under the undrawn revolving
credit facility which has been further extended until November 2016. Total
borrowings at the end of the year amounted to US$142 million, of which the
first repayment is only repayable from 2015. 
Included in other receivables are amounts due to the Group relating to indirect
taxes of US$95.0 million which are expected to be received within 12 months,
but these will be offset to an extent by new claims submitted for input taxes
incurred during 2014. The refunds remain dependent on processing and payments
of refunds by the Government of Tanzania. 
We expect that the above, in combination with the expected operational cash
flow generated during the year, will be sufficient to cover the capital
requirements and other commitments for the foreseeable future. 
In assessing the ABG Group's going concern status the Directors have taken into
account the above factors, including the financial position of the ABG Group
and in particular its significant cash position, the current gold and copper
price and market expectations for the same in the medium term, and the ABG
Group's capital expenditure and financing plans. After making appropriate
enquiries, the Directors consider that ABG and the ABG Group as a whole has
adequate resources to continue in operational existence for the foreseeable
future and that it is appropriate to adopt the going concern basis in preparing
the financial statements. 
Non-IFRS Measures 
ABG has identified certain measures in this report that are not measures
defined under IFRS. Non-IFRS financial measures disclosed by management are
provided as additional information to investors in order to provide them with
an alternative method for assessing ABG's financial condition and operating
results. These measures are not in accordance with, or a substitute for, IFRS,
and may be different from or inconsistent with non-IFRS financial measures used
by other companies. These measures are explained further below. 
Average realised gold price per ounce sold is a non-IFRS financial measure
which excludes from gold revenue: 
Unrealised mark-to-market gains and losses on provisional pricing from copper
and gold sales contracts; and 
Export duties. 
Cash costs per ounce sold is a non-IFRS financial measure. Cash costs include
all costs absorbed into inventory, as well as royalties, and production taxes,
and exclude capitalised production stripping costs, inventory purchase
accounting adjustments, unrealised gains/losses from non-hedge currency and
commodity contracts, depreciation and amortisation and corporate social
responsibility charges. Cash cost is calculated net of co-product revenue.
Refer to page 19 for a reconciliation to cost of sales. 
The presentation of these statistics in this manner allows ABG to monitor and
manage those factors that impact production costs on a monthly basis. ABG
calculates cash costs based on its equity interest in production from its
mines. Cash costs per ounce sold are calculated by dividing the aggregate of
these costs by gold ounces sold. Cash costs and cash costs per ounce sold are
calculated on a consistent basis for the periods presented. 
All-in sustaining cost (AISC) is a non-IFRS financial measure. The measure is
in accordance with the World Gold Council's guidance issued in June 2013. It is
calculated by taking cash costs per ounce sold and adding corporate
administration costs, reclamation and remediation costs for operating mines,
corporate social responsibility expenses, mine exploration and study costs,
capitalised stripping and underground development costs and sustaining capital
expenditure. This is then divided by the total ounces sold. A reconciliation
between cash cost per ounce sold and AISC is presented below: 
(Unaudited)                   Three months ended 31 December 2013       Three 
months ended 31 December 2012    


                                                                                
                              
                                                          ABG Group             
                    ABG Group 
                                                           ongoing              


                 ongoing  
(US$/oz sold)               Bulyanhulu North Mara Buzwagi operations  
Bulyanhulu North Mara Buzwagi operations 
                                                                             
                          
Cash cost per ounce sold           776        636     941        774         
971        949     853        924 
                                                                             
                          
Corporate administration            68         41      46         53          
84         53      53         82 
                                                                             
                          
Rehabilitation                       4         24       8         12          
13         48      26         30 
                                                                             
                          
Mine exploration                     2          8       1          4          
20         58       7         30 
                                                                             
                          
CSR expenses                         2         46       4         22           
7         48       6         27 
                                                                             
                          
Capitalised development            189        224     215        209         
264         75     205        175 
                                                                             
                          
Sustaining capital                  77         96      85         89         
237        440     389        354 
                                                                             
                          
Total continuing operations      1,118      1,075   1,300      1,163       
1,596      1,671   1,539      1,622 
                                                                             
                          
Discontinued operations                                            8             


                            53
                                                                                


                          
Total                                                          1,171             


                         1,675
                                                                                
                              


(Unaudited)                       Year ended 31 December 2013               
Year ended 31 December 2012        


                                                                                
                              
                                                          ABG Group             
                    ABG Group 
                                                           ongoing              


                 ongoing  
(US$/oz sold)               Bulyanhulu North Mara Buzwagi operations  
Bulyanhulu North Mara Buzwagi operations 
                                                                             
                          
Cash cost per ounce sold           890        659     945        812         
803        953   1,066        922 
                                                                             
                          
Corporate administration            72         38      51         50          
75         78      78         83 
                                                                             
                          
Rehabilitation                       7         29      15         18          
10         48      23         26 
                                                                             
                          
Mine exploration                     3         12       2          6           
9         31       6         16 
                                                                             
                          
CSR expenses                         6         31       4         19           
5         39       8         23 
                                                                             
                          
Capitalised development            233        251     321        266         
194        151     254        196 
                                                                             
                          
Sustaining capital                 133        207     168        175         
149        393     363        296 
                                                                             
                          
Total continuing operations      1,344      1,227   1,506      1,346       
1,245      1,693   1,798      1,561 
                                                                             
                          
Discontinued operations                                           16             


                            24
                                                                                


                          
Total                                                          1,362             


                         1,585
                                                                                
                              


AISC is intended to provide additional information on the total sustaining cost
for each ounce sold, taking into account expenditure incurred in addition to
direct mining costs, depreciation and selling costs. 
EBITDA is a non-IFRS financial measure. ABG calculates EBITDA as net profit or
loss for the period excluding: 
Income tax expense; 
Finance expense; 
Finance income; 
Depreciation and amortisation; 
Impairment charges of goodwill and other long-lived assets; and 
Discontinued operations. 
EBITDA is intended to provide additional information to investors and analysts.
It does not have any standardised meaning prescribed by IFRS and should not be
considered in isolation or as a substitute for measures of performance prepared
in accordance with IFRS. EBITDA excludes the impact of cash costs of financing
activities and taxes, and the effects of changes in operating working capital
balances, and therefore is not necessarily indicative of operating profit or
cash flow from operations as determined under IFRS. Other companies may
calculate EBITDA differently. 
Adjusted EBITDA is a non-IFRS financial measure. It is calculated by excluding
one-off costs or credits relating to non-routine transactions from EBITDA. It
excludes other credits and charges that, individually or in aggregate, if of a
similar type, are of a nature or size that requires explanation in order to
provide additional insight into the underlying business performance. 
EBIT is a non-IFRS financial measure and reflects EBITDA adjusted for
depreciation and amortisation and goodwill impairment charges. 
Adjusted net earnings is a non-IFRS financial measure. It is calculated by
excluding one-off costs or credits relating to non-routine transactions from
net profit attributed to owners of the parent. It includes other credit and
charges that, individually or in aggregate, if of a similar type, are of a
nature or size that requires explanation in order to provide additional insight
into the underlying business performance. Refer to page 23 for a reconciliation
to net earnings. 
Adjusted net earnings per share is a non-IFRS financial measure and is
calculated by dividing adjusted net earnings by the weighted average number of
Ordinary Shares in issue. 
Cash cost per tonne milled is a non-IFRS financial measure. Cash costs include
all costs absorbed into inventory, as well as royalties and production taxes,
and exclude capitalised production stripping costs, inventory purchase
accounting adjustments, unrealised gains/losses from non-hedge currency and
commodity contracts, depreciation and amortisation and corporate social
responsibility charges. Cash cost is calculated net of co-product revenue. ABG
calculates cash costs based on its equity interest in production from its
mines. Cash costs per tonne milled are calculated by dividing the aggregate of
these costs by total tonnes milled. 
Cash margin is a non-IFRS financial measure. The cash cost margin is the
average realised gold price per ounce less the cash cost per ounce sold. 
Operating cash flow per share is a non-IFRS financial measure and is calculated
by dividing Net cash generated by operating activities by the weighted average
number of Ordinary Shares in issue. 
Mining statistical information 
The following describes certain line items used in the ABG Group's discussion
of key performance indicators: 
Open pit material mined - measures in tonnes the total amount of open pit ore
and waste mined. 
Underground ore tonnes hoisted - measures in tonnes the total amount of
underground ore mined and hoisted. 
Total tonnes mined includes open pit material plus underground ore tonnes
hoisted. 
Strip ratio - measures the ratio of waste–to–ore for open pit material 
mined. 
Ore milled - measures in tonnes the amount of ore material processed through
the mill. 
Head grade - measures the metal content of mined ore going into a mill for
processing. 
Milled recovery - measures the proportion of valuable metal physically
recovered in the processing of ore. It is generally stated as a percentage of
the metal recovered compared to the total metal originally present. 
Total production costs - measures the total cost of production and is an
aggregate of total cash costs as well as production specific depreciation and
amortisation. 
Risk Review 
We have made a number of further developments in the identification and
management of our risk profile throughout 2013.  While the overall makeup of
our principal risks has not significantly changed from 2012, there have been
changes in certain risk profiles as a result of developments in our operating
environment and continuing uncertainties and trends within the wider global
economy and/or the mining industry. Where appropriate, risk ratings have been
reviewed against risk management controls and other mitigating factors. Our
principal risks fall within four broad categories: strategic risks, financial
risks, external risks and operational risks and can be further summarised as
follows: 
Single country risk: whilst ABG's focus remains on our current operations
within Tanzania, we continue to assess potential growth opportunities in other
territories to enhance our existing portfolio and strengthen the business
through geographic diversification in order to mitigate the effects that
significant in-country developments could have on our operations and business. 
Reserves and resources estimates: ABG's reserves and resources statements are
estimates based on a range of assumptions, including geological, metallurgical
and technical factors, such that no assurances can be given that anticipated
tonnages or grades will be achieved. We seek to manage the varying nature of
estimates through our life of mine planning procedures, periodic reviews of
such estimates and by ensuring that our reserves and resources estimates are
calculated and reported in accordance with the requirements of NI 43-101 of the
Canadian Institute of Mining and Metallurgy and Petroleum.  
Commodity prices: ABG's financial performance is highly dependent on the price
of gold and, to a lesser extent, the price of copper and silver. Fluctuations
in the pricing of these commodities, which are largely attributable to factors
beyond ABG's control, may have a corresponding impact on ABG's financial
position, particularly in the context of rapid pricing fluctuations. We seek to
mitigate the impact of such pricing fluctuations via hedging arrangements for
certain operating cost exposures (copper, silver and diesel) and through
continuous monitoring of our exposure to commodity price fluctuations as part
of financial and treasury planning and controls procedures.   
Costs and capital expenditure: continued industry cost pressures, particularly
as regards labour, capital equipment and energy costs affect ABG's ability to
manage operating costs and capital expenditure. We seek to manage factors which
could impact costs and capital expenditure levels through the ongoing
implementation of cost controls, particularly in the context of our Operational
Review, and by maintaining a conservative balance sheet and strict cash flow
planning processes to mitigate liquidity risks. 
Political, legal and regulatory developments: ABG's ability to conduct its
business is dependent on stable and consistent interpretation and application
of laws and regulations applicable to mining activities, particularly in
Tanzania. Changes to existing laws and regulations, a more stringent
application or interpretation of regulations or inconsistencies and
irregularities in regulatory interpretation by relevant government authorities
could adversely affect the progression of ABG's operations and development
projects. For this reason, we actively monitor legal and regulatory
developments in countries in which we have operational or development interests
and we maintain open channels of dialogue with government and legal policy
makers in our host countries, particularly in Tanzania. 
Taxation reviews: ABG's financial position could be adversely affected if
revisions to royalty or corporate tax regimes were introduced in Tanzania that
go beyond the fiscal stability agreements contained in our Mineral Development
Agreements. In addition, ABG has a number of ongoing discussions with the
Tanzanian Revenue Authority and Ministry of Finance as regards certain
outstanding tax assessments and unresolved tax disputes, particularly in the
context of VAT relief. ABG's financial condition continues to be impacted as a
result of the ongoing nature of these discussions and may be further adversely
affected if we do not achieve a successful resolution to these discussions. To
date, we have negotiated and agreed a memorandum of understanding for the
treatment of certain outstanding indirect tax refunds in respect of fuel levies
and VAT and, more recently, we have agreed to the use of an escrow arrangement
in order to safeguard the recoverability VAT payments on imports. 
Utilities supply: power stoppages, fluctuations and disruptions in electrical
power supply or other utilities impact our ability to operate continuously and
can also result in increased costs, particularly as regards power supply costs,
due to the need to use alternative power sources in order to mitigate the
impact of electricity shortages. We have made a number of investments in power
generation capabilities, such that we have capacity for the self generation of
power to maintain critical systems across sites and we seek to employ practices
to alternative power use that provide for cost saving efficiencies whenever
possible. 
Community relations: a failure to adequately engage or manage relations with
local communities and stakeholders affects our social licence to operate and
can have a direct and negative impact on our ability to operate.  For this
reason we look to progress a range of community relations initiatives, notably
through the investments made by the ABG Maendeleo Fund, in order to foster
relationships with our local communities. 
Land acquisition: the progression of mining activities at certain ABG
operations is dependent upon ABG's ability to complete land acquisitions to
support life of mine plans successfully and in a timely manner. Increases in
the cost of such land acquisitions and/or delays in completing such activities
could have a material adverse effect on operating conditions, particularly at
North Mara.  We seek to address issues relating to land acquisition in
collaboration with the Tanzanian Government and monitor land footprint
requirements as part of life of mine planning activities. 
Loss of critical processes: failures or unavailability of operational
infrastructure, for example as a result of equipment failure or disruption or
deficiencies in core supply chain availability, could adversely affect
production output and/or impact exploration and development activities. For
this reason, part of the Operational Review has examined opportunities to
enhance existing supply chain management practices in the context of improving
overall management of inventory levels. 
Environmental hazards and rehabilitation: ABG's operations are subject to
environmental hazards as a result of the processes and chemicals used in its
extraction and production methods. ABG may be liable for losses and costs
associated with environmental hazards at its operations, have its licences and
permits withdrawn or suspended as a result of such hazards, or may be forced to
undertake extensive clean-up and remediation action. We use a number of
environmental management systems and controls across the business to provide
for appropriate environmental practices, including the adoption of specific
environmental management plans for each of our operations and the use of
environmental and social impact assessments for potential projects. We also
monitor our activities against key international standards, such as the
International Cyanide Code.  
Employer, contractor and industrial relations: ABG's business depends on our
ability to attract and retain skilled employees and to maintain good relations
generally with its employees and employee representative groups, such as trade
unions. A loss in skilled employees and/or a breakdown in employee relations
could result in a decrease in production levels and/or increased costs and/or
general disruptions to operations. As part of ongoing employer commitments, ABG
looks for opportunities to expand its existing vocational training programmes
and is committed to furthering the nationalisation of its workforce in order to
strengthen and build capacity within the Tanzanian mining industry. 
Security, trespass and vandalism: ABG faces certain risks in dealing with fraud
and corruption and wider security-related matters relating to trespass, theft
and vandalism and unauthorised small-scale mining in proximity to its
operations and on specific areas covered by ABG's exploration and mining
licences, all of which may have an adverse effect upon ABG's operations and
financial condition.  As part of strategic reviews we are looking to enhance
and progress our security management procedures for improved alignment with
operational requirements. Where appropriate, we also work in collaboration with
local law enforcement to address security-related threats and concerns. 
Organisational restructuring: ABG's organisational restructuring (including the
transfer of certain support functions from South Africa to Tanzania) and
related transitional periods may negatively impact the delivery of key
operational support services and could also result in deteriorations in certain
financial and operational controls. To mitigate this, we are establishing
specific change management procedures for use in implementing the restructuring
and will also maintain our current management structures for financial
reporting, treasury, planning and internal audit, these being key elements of
our internal controls and risk management framework.  


    
    Directors


The Directors serving on the Board during the year will be listed in ABG's
annual report. A list of current Directors is maintained on ABG's website:
www.africanbarrickgold.com 
Condensed Financial Information 
Consolidated income statement 
                                                                           For 
the    For the year 
                                                                     year 
ended           ended
(Unaudited)                                                             31 
December     31 December 
                                                                             
               
(in thousands of United States dollars, except per share amounts) Notes        
2013 2012 (Restated) 
                                                                             
               
CONTINUING OPERATIONS                                                            


                   
                                                                                


               
Revenue                                                             7       
929,004       1,011,738 
                                                                             
               
Cost of sales                                                             
(713,806)       (720,036) 
                                                                             
               
Gross profit                                                                
215,198         291,702 
                                                                             
               
Corporate administration                                                   
(32,157)        (47,640) 
                                                                             
               
Exploration and evaluation costs                                    9      
(16,927)        (26,752) 
                                                                             
               
Corporate social responsibility expenses                                   
(12,237)        (13,051) 
                                                                             
               
Impairment charges                                                  8   
(1,044,310)               - 
                                                                             
               
Other charges                                                      10      
(30,424)        (17,071) 
                                                                             
               
(Loss)/profit before net finance expense and taxation                     
(920,857)         187,188 
                                                                             
               
Finance income                                                     11         
1,670           2,056 
                                                                             
               
Finance expense                                                    11       
(9,552)        (10,079) 
                                                                             
               
(Loss)/profit before taxation                                             
(928,739)         179,165 
                                                                             
               
Tax credit/(expense)                                               12       
187,959        (78,693) 
                                                                             
               
Net (loss)/profit from continuing operations                              
(740,780)         100,472 


                                                                                
                   
                                                                                
                   
                                                                                


               
DISCONTINUED OPERATIONS                                                          


                   
                                                                                


               
Net loss from discontinued operations                               5      
(57,653)        (48,979) 


                                                                                
                   
                                                                                
                   
                                                                                


               
Net (loss)/profit for the year                                            
(798,433)          51,493 


                                                                                
                   
                                                                                
                   
                                                                                


               
Net (loss)/profit attributable to:                                               


                   
                                                                                


               
 Owners of the parent (net (loss)/ earnings)                                     


                   
                                                                                


               
- Continuing operations                                                   
(740,780)         100,472 
                                                                             
               
- Discontinued operations                                                  
(40,321)        (37,692) 
                                                                             
               
 Non-controlling interests                                                       


                   
                                                                                


               
- Discontinued operations                                                  
(17,332)        (11,287) 


                                                                                
                   
                                                                                
                   
                                                                                
                   
    (Loss)/earnings per share:                                                      
    
                                                                                



 - Basic and dilutive (loss)/earnings per share (cents) from                     

continuing operations                                               13      
(180.6)            24.5 
                                                                             

 - Basic  and dilutive (loss)/earnings per share (cents) from                    

discontinued operations                                             13        
(9.8)           (9.2) 


                                                                                
    
    

The notes on pages 37 to 54 are an integral part of this financial information.
    Consolidated statement of comprehensive income
                                                                      For the      
     


                                                                  year    
For the 
                                                                 ended year 
ended 
                                                                    31       
31
(Unaudited)                                                       December   
December 


                                                                                
     


                                                                            
 2012
(in thousands of United States dollars)                               2013 
(Restated) 
                                                                             
 
Net (loss)/profit for the year                                   (798,433)     
51,493 
                                                                             
 
Other comprehensive income:                                                      


     
                                                                                


 
Items that may be subsequently reclassified to profit or loss:                   


     
                                                                                


 
Changes in fair value of cash flow hedges                            1,570      
  363 
                                                                             
 
Total comprehensive (loss)/income for the year                   (796,863)     
51,856 
                                                                             
 
Attributed to:                                                                   


     
                                                                                


 
 - Owners of the parent                                          (779,531)     
63,143 
                                                                             
 
 - Non-controlling interests                                      (17,332)   
(11,287) 


                                                                                
     
    

The notes on pages 37 to 54 are an integral part of this financial information.
    Consolidated balance sheet
                                                                       As at       
         
                                                                       31       


As at
(Unaudited)                                                      December     
31 December 
                                                                             
     
(in thousands of United States dollars)                   Notes      2013 2012 
(Restated) 
                                                                             
     
ASSETS                                                                           


         
                                                                                


     
Non-current assets                                                               


         
                                                                                


     
Goodwill and intangible assets                             15     211,190       
  278,221 
                                                                             
     
Property, plant and equipment                              14   1,280,671       
1,975,040 
                                                                             
     
Deferred tax assets                                        16      50,787        


    2,399
                                                                                


     
Non-current portion of inventory                                   72,689       
  115,553 
                                                                             
     
Derivative financial instruments                                    3,253        


      467
                                                                                


     
Other assets                                                      137,191       
  137,565 


                                                                                
         


                                                            1,755,781       
2,509,245 
                                                                             
     
Current assets                                                                   


         
                                                                                


     
Inventories                                                       253,676       
  332,232 
                                                                             
     
Trade and other receivables                                17      24,210        
44,227 
                                                                             
     
Derivative financial instruments                                    1,366        


    2,207
                                                                                


     
Other current assets                                       17     113,945        
44,314 
                                                                             
     
Cash and cash equivalents                                         282,409       
  401,348 


                                                                                
         


                                                              675,606       
  824,328 
                                                                             
     
Assets of disposal group classified as held for sale                  596        


       - 
                                                                                


     
Total assets                                                    2,431,983       
3,333,573 
                                                                             
     
EQUITY AND LIABILITIES                                                           


         
                                                                                


     
Share capital and share premium                                   929,199       
  929,199 
                                                                             
     
Other reserves                                                    992,915       
1,826,511 
                                                                             
     
Total owners' equity                                            1,922,114       
2,755,710 
                                                                             
     
Non-controlling interests                                           5,248        
22,580 
                                                                             
     
Total equity                                                    1,927,362       
2,778,290 


                                                                                
         
                                                                                
         
                                                                                


     
Non-current liabilities                                                          


         
                                                                                


     
Borrowings                                                 18     142,000        


        -
                                                                                


     
Deferred tax liabilities                                   16      35,862       
  175,115 
                                                                             
     
Derivative financial instruments                                    1,207        


      294
                                                                                


     
Provisions                                                 19     132,237       
  180,548 
                                                                             
     
Other non-current liabilities                                      10,101        
21,064 


                                                                                
         


                                                              321,407       
  377,021 
                                                                             
     
Current liabilities                                                              


         
                                                                                


     
Trade and other payables                                          147,896       
  169,904 
                                                                             
     
Derivative financial instruments                                    5,074        


      429
                                                                                


     
Provisions                                                 19       1,028        


    1,040
                                                                                


     
Other current liabilities                                          12,456        


    6,889
                                                                                
         


                                                              166,454       
  178,262 
                                                                             
     
Liabilities of disposal group classified as held for sale          16,760        


       - 
                                                                                


     
Total liabilities                                                 504,621       
  555,283 


                                                                                
         
                                                                                
         
                                                                                


     
Total equity and liabilities                                    2,431,983       
3,333,573 


                                                                                
         
    
    The notes on pages 37 to 54 are an integral part of this financial information.
    Consolidated statement of changes in equity
                                                                                
                Cash flow


                                                     Share   Share 
Contributed surplus        hedging
  (Unaudited)                                    Notes capital premium      
/Other reserve        reserve 
                                                                             
                     
  (in thousands of United States dollars)                                        


                         
                                                                                


                     
  Balance at 1 January 2012                             62,097 867,102          
 1,368,713              - 
                                                                             
                     
  Total comprehensive income/(loss) for the year     4       -       -           


         -            363
                                                                                


                     
  Dividends to equity holders of the Company                 -       -           


         -              -
                                                                                


                     
  Stock option grants                                        -       -           


         -              -
                                                                                


                     
  Distributions to non-controlling interests                 -       -           


         -              -
                                                                                


                     
  Balance at 31 December 2012                           62,097 867,102          
 1,368,713            363 
                                                                             
                     
  Total comprehensive income/(loss) for the year             -       -           


         -          1,570
                                                                                


                     
  Dividends to equity holders of the Company                 -       -           


         -              -
                                                                                


                     
  Stock option grants                                        -       -           


         -              -
                                                                                


                     
  Balance at 31 December 2013                           62,097 867,102          
 1,368,713          1,933 


                                                                                
                         
    Consolidated statement of changes in equity


                                                Stock Retained earnings     
Total     Total non-           
                                               option    / (Accumulated   
owners'    controlling     Total
  (Unaudited)                                     reserve           losses)    
equity      interests    equity 
                                                                             
                          
  (in thousands of United States dollars)                                        


                              
                                                                                


                          
  Balance at 1 January 2012                         2,041           461,278 
2,761,231         37,473 2,798,704 
                                                                             
                          
  Total comprehensive income/(loss) for the year        -            62,780    
63,143       (11,287)    51,856 
                                                                             
                          
  Dividends to equity holders of the Company            -          (70,125)  
(70,125)              -  (70,125) 
                                                                             
                          
  Stock option grants                               1,461                 -     
1,461              -     1,461 
                                                                             
                          
  Distributions to non-controlling interests            -                 -      


    -        (3,606)   (3,606)
                                                                                


                          
  Balance at 31 December 2012                       3,502           453,933 
2,755,710         22,580 2,778,290 
                                                                             
                          
  Total comprehensive income/(loss) for the year        -         (781,101) 
(779,531)       (17,332) (796,863) 
                                                                             
                          
  Dividends to equity holders of the Company            -          (54,541)  
(54,541)              -  (54,541) 
                                                                             
                          
  Stock option grants                                 476                 -     
  476              -       476 
                                                                             
                          
  Balance at 31 December 2013                       3,978         (381,709) 
1,922,114          5,248 1,927,362 


                                                                                
                              
    The notes on pages 37 to 54 are an integral part of this financial information.
    Consolidated cash flow statement


                                                            For the    For the 
year 
                                                      year ended           
ended
(Unaudited)                                              31 December     31 
December 
                                                                             

(in thousands of United States dollars)                         2013 2012 
(Restated) 
                                                                             

Cash flows from operating activities                                             


    
                                                                                



Net (loss)/profit for the year                             (798,433)          
51,493 
                                                                             

Adjustments for:                                                                 


    
                                                                                



  Tax (credit)/ expense                                    (187,959)          
72,604 
                                                                             

  Depreciation and amortisation                              141,159         
168,228 
                                                                             

  Finance items                                                7,968           
8,203 
                                                                             

  Impairment charges                                       1,061,011          
44,536 
                                                                             

  Profit on disposal of property, plant and equipment          (175)           
(616) 
                                                                             

Working capital adjustments                                 (41,165)        
(74,070) 
                                                                             

Other non-cash items                                           8,181           
3,088 
                                                                             

Cash generated from operations before interest and tax       190,587         
273,466 
                                                                             

Finance income                                                 1,700           
2,102 
                                                                             

Finance expenses                                             (5,172)         
(6,284) 
                                                                             

Income tax paid                                                    -           
(551) 
                                                                             

Net cash generated by operating activities                   187,115         
268,733 


                                                                                
    
                                                                                
    
                                                                                



Cash flows from investing activities                                             


    
                                                                                



Purchase of property, plant and equipment                  (373,101)       
(323,505) 
                                                                             

Investments in other assets                                  (8,289)        
(24,473) 
                                                                             

Acquisition of subsidiary, net of cash acquired                (588)        
(22,039) 
                                                                             

Other investing activities                                   (4,872)         
(1,468) 
                                                                             

Net cash used in investing activities                      (386,850)       
(371,485) 


                                                                                
    
                                                                                
    
                                                                                



Cash flows from financing activities                                             


    
                                                                                



Loans received                                               142,000             
- 
                                                                             

Dividends paid                                              (54,541)        
(70,125) 
                                                                             

Distributions to non-controlling interest holders                  -         
(3,606) 
                                                                             

Finance lease instalments                                    (5,137)         
(5,708) 
                                                                             

Net cash generated by/(used in) financing activities          82,322        
(79,439) 


                                                                                
    
                                                                                
    
                                                                                



Net decrease in cash and cash equivalents                  (117,413)       
(182,191) 
                                                                             

Net foreign exchange difference                              (1,526)           
(615) 
                                                                             

Cash and cash equivalents at 1 January                       401,348         
584,154 
                                                                             

Cash and cash equivalents at 31 December                     282,409         
401,348 


                                                                                
    
    

The notes on pages 37 to 54 are an integral part of this financial information.
    Notes to the condensed financial information
    General Information


African Barrick Gold plc (the "Company", "ABG" or collectively with its
subsidiaries the "Group") was incorporated on 12 January 2010 and re-registered
as a public limited company on 12 March 2010 under the Companies Act 2006. It
is registered in England and Wales with registered number 7123187. 
On 24 March 2010 the Company's shares were admitted to the Official List of the
United Kingdom Listing Authority ("UKLA") and to trading on the Main Market of
the London Stock Exchange, hereafter referred to as the Initial Public Offering
("IPO"). The address of its registered office is No.1 Cavendish Place, London,
W1G 0QF. 
Barrick Gold Corporation ("BGC") currently owns approximately 73.9% of the
shares of the Company and is the ultimate parent and controlling party of the
Group. The financial statements of BGC can be obtained from www.barrick.com. 
The condensed consolidated financial information for the year ended 31 December
2013 was approved for issue by the Board of Directors of the Company on 11
February 2014. The condensed consolidated financial information does not
comprise statutory accounts within the meaning of section 434 of the Companies
Act 2006. The condensed consolidated financial information is unaudited. 
The Group's primary business is the mining, processing and sale of gold. The
Group has three operating mines located in Tanzania. The Group also has a
portfolio of exploration projects located in Kenya. 
Basis of Preparation of the condensed financial information 
The financial information set out above does not constitute the Group's
statutory accounts for the year ended 31 December 2013, but is derived from the
Group's full financial accounts, which are in the process of being audited. The
Group's full financial accounts will be prepared under International Financial
Reporting Standards as adopted by the European Union. The financial statements
are prepared on a going concern basis. 
The condensed consolidated financial information has been prepared under the
historical cost convention basis, as modified by the revaluation of financial
assets and financial liabilities (including derivative instruments) at fair
value through profit and loss. The financial statements are presented in US
dollars (US$) and all monetary results are rounded to the nearest thousand
dollars (US) except when otherwise indicated. 
Where a change in the presentational format between the prior year and current
year condensed consolidated financial information has been made during the
period, comparative figures have been restated accordingly. The following
presentational changes were made during the current year: 
Application of IFRIC 20 "Stripping costs in the production phase of a surface
mine". Refer to note 4 for a discussion of the change in accounting policy. 
Presentation of the results of discontinued operations due to the agreement to
transfer Tulawaka mine to STAMICO, the Tanzanian State Mining Corporation.
Refer to note 5 for a discussion of the transaction. 
Accounting Policies 
Accounting policies have remained consistent with the prior year except for the
adoption of new standards. 
New and amended standards adopted by the Group 
The following new standards and amendments to standards are applicable and were
adopted by the Group for the first time for the financial year beginning 1
January 2013. 
IAS 1, 'Financial statement presentation' regarding other comprehensive income.
The main change resulting from these amendments is a requirement for entities
to group items presented in 'other comprehensive income' (OCI) on the basis of
whether they are potentially subsequently reclassifiable to profit or loss.
Refer to the statement of comprehensive income for disclosure of the required
classification. 
The accounting policy for stripping costs has been updated to reflect the
impact of IFRIC 20, 'Stripping costs in the production phase of a surface
mine'. Refer to note 4 for details on the change in accounting policy. 
IFRS 13, 'Fair value measurement', aims to improve consistency and reduce
complexity by providing a precise definition of fair value and a single source
of fair value measurement and disclosure requirements for use across IFRSs. 
Annual improvements 2011 - effective for periods beginning on or after 1
January 2013. 
Amendment to IFRS 7, Financial instruments: Disclosures' - effective for
periods beginning on or after 1 January 2013. 
Amendment to IAS 12, 'Income tax' - effective for periods beginning on or after
1 January 2013. 
New and amended standards, and interpretations not yet adopted 
The following standards and amendments to existing standards have been
published and are mandatory for the Group's accounting periods beginning on or
after 1 January 2013 or later periods, but are currently not relevant to the
Group: 
IFRS 9, 'Financial instruments', addresses the classification, measurement and
recognition of financial assets and financial liabilities. IFRS 9 was issued in
November 2009 and October 2010 and replaces the parts of IAS 39 that relate to
the classification and measurement of financial instruments. IFRS 9 requires
financial assets to be classified into two measurement categories: those
measured at fair value and those measured at amortised cost. The determination
is made at initial recognition. The classification depends on the entity's
business model for managing its financial instruments and the contractual cash
flow characteristics of the instrument. For financial liabilities, the standard
retains most of the IAS 39 requirements. The main change is that in cases where
the fair value option is taken for financial liabilities, the comprehensive
income rather than the income statement is affected, unless this creates an
accounting mismatch. The impact of IFRS 9 is not expected to be material to the
Group. IFRS 9 is not yet endorsed by the European Union. The effective date is
after 1 January 2015. 
IFRIC 21, 'Levies', sets out the accounting for an obligation to pay a levy
that is not income tax. The interpretation addresses the obligating event that
gives rise to pay a levy and when a liability should be recognised. The impact
is not expected to be material to the group. IFRIC 21 is not yet endorsed by
the European Union. 
IFRS 10, 'Consolidated financial statements' builds on existing principles by
identifying the concept of control as the determining factor in whether an
entity should be included within the consolidated financial statements of the
parent company. The standard provides additional guidance to assist in the
determination of control where this is difficult to assess. The standard is not
mandatory for the Group until 1 January 2014, and the impact is not expected to
be material. 
IFRS 11, 'Joint arrangements' focuses on rights and obligations of the parties
to the arrangement rather than its legal form. Proportional consolidation of
joint arrangements is no longer permitted. The standard is not mandatory for
the Group until 1 January 2014 and is not expected to have an impact on the
Group. 
IFRS 12, 'Disclosures of interests in other entities' includes the disclosure
requirements for all forms of interests in other entities including joint
arrangements, associates, structured entities and other off-balance sheet
vehicles. The standard is not mandatory for the Group until 1 January 2014. The
standard is expected to impact the Group with regards disclosure of
restrictions on its ability to access assets. 
Change in Accounting Policy 
During October 2011, the International Accounting Standards Board issued IFRIC
20, "Stripping costs in the production phase of a surface mine". The
interpretation applies to waste removal costs incurred in surface mining
activity during the production phase of a mine and addresses the recognition of
production stripping costs as an asset, initial measurement of the stripping
activity asset and the subsequent measurement of the stripping activity asset. 
The stripping cost accounting policy has been changed to align with the
requirements of IFRIC 20. Stripping costs are now capitalised if the stripping
activity provides economic benefit to an identifiable component of the ore
body. Depreciation of capitalised costs for the components is calculated over
the reserves of the ore body that have been made accessible through the
stripping activity. The previous accounting policies required accounting for
stripping costs by reference to ore reserves from each separate pit, where the
revised policy requires accounting for each identifiable component of the ore
body. 
IFRIC 20 is applicable for annual periods beginning on or after 1 January 2013.
The application of IFRIC 20 resulted in the restatement of 2012 results. The
impact on the Consolidated Income Statement, Consolidated Statement of
Financial Position and Consolidated Statements of Cash Flows for the year ended
31 December 2012 is set out below: 
(in thousands of United States dollars)        Restated1 Previously reported 
Variance 
                                                                             
 
Consolidated Income Statement                                                    


     
                                                                                


 
Net adjustments:                                                                 


     
                                                                                


 
Direct mining costs                              576,070             581,483  
(5,413) 
                                                                             
 
Depreciation and amortisation2                   159,446             158,883    
  563 
                                                                             
 
Tax expense                                       72,604              71,063    
1,541 
                                                                             
 
Total                                            808,120             811,429  
(3,309) 
                                                                             
 
Consolidated Balance Sheet                                                       


     
                                                                                


 
Net adjustments:                                                                 


     
                                                                                


 
Mineral properties and mine development costs    819,063             807,947   
11,116 
                                                                             
 
Inventory                                        447,785             454,051  
(6,266) 
                                                                             
 
Deferred tax liabilities                         175,114             173,574    
1,540 
                                                                             
 
Consolidated Cash Flow Statement                                                 


     
                                                                                


 
Cash flows provided by operating activities      268,733             257,903   
10,830 
                                                                             
 
Cash flows used in investing activities        (371,485)           (360,655) 
(10,830) 


                                                                                
     
    1 Represents values for the total Group including discontinued operations.

2 Depreciation and amortisation includes the depreciation component of the cost
of inventory sold.
    Discontinued Operations and disposal group assets and liabilities held for sale


On 15 November 2013 ABG announced that an agreement was reached with STAMICO,
the Tanzanian State Mining Corporation, whereby STAMICO will acquire the
Tulawaka Gold Mine ("Tulawaka") and certain exploration licenses surrounding
Tulawaka for consideration of US$4.5 million and the grant of a 2% net smelter
royalty on future production in excess of 500,000 ounces, capped at US$500,000. 
As part of the agreement, STAMICO will take ownership and management of the
rehabilitation fund established as part of the closure plan for the mine, in
return for the assumption of all remaining past and future closure and
rehabilitation liabilities for Tulawaka, and will indemnify the other parties
to the agreement in relation to these liabilities. This has resulted in a cash
payment of US$11.6 million in February 2014 by ABG to STAMICO for the balance
of the rehabilitation fund, less the transaction consideration. 
Tulawaka is 100% owned by the Tulawaka Joint Venture, in which ABG holds a 70%
economic interest through a wholly owned subsidiary, with MDN Inc holding the
remaining 30% of the Joint Venture. Production at Tulawaka ceased in Q2 2013. 
The financial results of Tulawaka have been presented as discontinued
operations in the condensed consolidated financial statements. The comparative
results in the condensed consolidated income statement have been presented as
if Tulawaka had been discontinued from the start of the comparative period. The
assets and liabilities that are to be sold to STAMICO have been presented as
held for sale. 
Below is a summary of the results of Tulawaka for the year ended 31 December: 
(in thousands of United States dollars)                             2013        
2012 
                                                                             

Results of discontinued operations                                               


    
                                                                                



Revenue                                                           13,514      
75,601 
                                                                             

Cost of sales                                                   (30,368)    
(77,823) 
                                                                             

Gross loss                                                      (16,854)     
(2,222) 
                                                                             

Corporate administration                                         (1,311)     
(3,928) 
                                                                             

Exploration and evaluation costs                                      -      
(2,208) 
                                                                             

Corporate social responsibility expenses1                        (3,259)     
(1,394) 
                                                                             

Impairment charges                                              (16,701)    
(44,536) 
                                                                             

Other charges2                                                  (19,442)       
(600) 
                                                                             

Loss before net finance expense and taxation                    (57,567)    
(54,888) 
                                                                             

Finance income                                                        30        
  46 
                                                                             

Finance expense                                                    (116)       
(226) 
                                                                             

Loss before taxation                                            (57,653)    
(55,068) 
                                                                             

Tax credit                                                             -       
6,089 
                                                                             

Net loss for the year                                           (57,653)    
(48,979) 


                                                                                
    


Below is a summary of cash flows from discontinued operations for year ended 31
December: 
(in thousands of United States dollars)                            2013         
2012 
                                                                             

Operating cash flows                                           (31,811)        
5,104 
                                                                             

Investing cash flows                                            (8,702)     
(22,400) 
                                                                             

Financing cash flows                                                  -          
- 
                                                                             

Total cash flows                                               (40,513)     
(17,296) 


                                                                                
    
    

1 Corporate social responsibility expenses relate to projects supported from
the ABG Maendeleo Fund.

2  Included in other charges are non-operational costs incurred since the
cessation of operations of US$18.1 million.


Below is a summary of Tulawaka's assets and liabilities at 31 December
classified as disposal group held for sale: 
(in thousands of United States dollars)                               2013 
                                                                      
Property, plant and equipment                                          239 
                                                                      
Inventories                                                            357 
                                                                      
Disposal group assets held for sale                                    596 
                                                                      
Provisions                                                          16,760 
                                                                      
Disposal group liabilities held for sale                            16,760 
                                                                      
Net assets and liabilities of disposal group held for sale        (16,164) 


                                                                          
    Segment Reporting


The Group has only one primary product produced in a single geographic
location, being gold produced in Tanzania. In addition the Group produces
copper and silver as a co-product. Reportable operating segments are based on
the internal reports provided to the Chief Operating Decision Maker ("CODM") to
evaluate segment performance, decide how to allocate resources and make other
operating decisions. After applying the aggregation criteria and quantitative
thresholds contained in IFRS 8, the Group's reportable operating segments were
determined to be: North Mara gold mine; Bulyanhulu gold mine; Buzwagi gold
mine; a separate Corporate and Exploration segment, which primarily consists of
costs related to other charges and corporate social responsibility expenses, as
well as discontinued operations (Tulawaka gold mine). 
Segment results and carrying values include items directly attributable to the
segment as well as those that can be allocated on a reasonable basis. Segment
carrying values are disclosed and calculated as shareholders equity after
adding back debt and intercompany liabilities, and subtracting cash and
intercompany assets. Capital expenditures comprise of additions to property,
plant and equipment. The Group has also included segment cash costs and all-in
sustaining cost per ounce sold. 
Segment information for the reportable operating segments of the Group for the
periods ended 31 December 2013 and 31 December 2012 is set out below. 
                                                               For the year 
ended 31 December 2013                      


                                                                                
                                        
                                                North                           


 Continuing Discontinued            
(in thousands of United States dollars)          Mara Bulyanhulu   Buzwagi    
Other  operations  operations7       Total 
                                                                             
                                    
Gold revenue                                  364,574    262,539   258,879      
  -     885,992       13,483     899,475 
                                                                             
                                    
Co-product revenue                                819     16,882    25,311      
  -      43,012           31      43,043 
                                                                             
                                    
Total segment revenue                         365,393    279,421   284,190      
  -     929,004       13,514     942,518 
                                                                             
                                    
Segment cash operating cost1                (172,894)  (190,647) (202,286)      
  -   (565,827)     (20,527)   (586,354) 
                                                                             
                                    
Corporate administration and exploration     (13,026)   (14,661)  (20,976)    
(421)    (49,084)      (1,311)    (50,395) 
                                                                             
                                    
Other charges and corporate social                                               
                                    
responsibility expenses                      (11,961)    (5,827)   (4,730) 
(20,143)    (42,661)     (22,701)    (65,362) 
                                                                             
                                    
EBITDA2                                       167,512     68,286    56,198 
(20,564)     271,432     (31,025)     240,407 
                                                                             
                                    
Impairment charges                          (307,259)          - (690,478) 
(46,573) (1,044,310)     (16,701) (1,061,011) 
                                                                             
                                    
Depreciation and amortisation8               (68,565)   (35,867)  (39,906)  
(3,641)   (147,979)      (9,841)   (157,820) 
                                                                             
                                    
EBIT2                                       (208,312)     32,419 (674,186) 
(70,778)   (920,857)     (57,567)   (978,424) 
                                                                             
                                    
Finance income                                    327        662       406      
275       1,670           30       1,700 
                                                                             
                                    
Finance expense                               (2,501)    (1,482)   (2,446)  
(3,123)     (9,552)        (116)     (9,668) 
                                                                             
                                    
Loss before taxation                        (210,486)     31,599 (676,226) 
(73,626)   (928,739)     (57,653)   (986,392) 
                                                                             
                                    
Tax credit                                     44,283   (13,977)   146,990   
10,663     187,959            -     187,959 
                                                                             
                                    
Net loss for the year                       (166,203)     17,622 (529,236) 
(62,963)   (740,780)     (57,653)   (798,433) 


                                                                                
                                        
                                                                                
                                        
                                                                                


                                    
Capital expenditure:                                                             


                                        
                                                                                


                                    
Sustaining                                     38,386     25,193    31,589      
690      95,858          583      96,441 
                                                                             
                                    
Expansionary                                      949    114,912         -    
1,608     117,469            -     117,469 
                                                                             
                                    
Capitalised development                        65,594     45,428    60,136       


        171,158            -     171,158
                                                                                


                                    
Reclamation asset reduction                  (11,271)   (10,044)   (9,230)      
  -    (30,545)        (195)    (30,740) 
                                                                             
                                    
Total capital expenditure                      93,658    175,489    82,495    
2,298     353,940          388     354,328 


                                                                                
                                        
                                                                                
                                        
                                                                                


                                    
Segmental cash operating cost                 172,894    190,647   202,286      
  -     565,827       20,527     586,354 
                                                                             
                                    
Deduct: co-product revenue                      (819)   (16,882)  (25,311)      
  -    (43,012)         (31)    (43,043) 
                                                                             
                                    
Total cash costs                              172,075    173,765   176,975      
  -     522,815       20,496     543,311 
                                                                             
                                    
Sold ounces3                                  260,945    195,304   187,348      
  -     643,597        8,778     652,375 
                                                                             
                                    
Cash cost per ounce sold2                         659        890       945      
  -         812        2,335         833 
                                                                             
                                    
Attributable to outside interests4                                               


                                     (6)
                                                                                


                                    
Total attributable cash cost per ounce                                           
                                    
sold2                                                                            


                                     827
                                                                                
                                        
                                                                                
                                        
                                                                                


                                    
Cash costs per ounce sold2                        659        890       945      
  -         812        2,335         833 
                                                                             
                                    
Corporate administration charges                   38         72        51      
(2)          50          149          51 
                                                                             
                                    
Rehabilitation - accretion and depreciation        29          7        15      
  -          18           86          19 
                                                                             
                                    
Mine site exploration costs                        12          3         2      
  -           6            6           6 
                                                                             
                                    
Corporate social responsibility expenses           31          6         4      
  3          19          371          24 
                                                                             
                                    
Capitalised stripping/ UG development             251        233       321      
  -         266            -         262 
                                                                             
                                    
Sustaining capital expenditure                    207        133       168      
  1         175           66         173 
                                                                             
                                    
Attributable to outside interests4                                               


                                     (6)
                                                                                


                                    
All-in sustaining cost per ounce sold2          1,227      1,344     1,506      
  2       1,346        3,013       1,362 


                                                                                
                                        
                                                                                
                                        
                                                                                


                                    
Segment carrying value6                       367,326  1,116,142   253,344   
81,005   1,817,817       10,489   1,828,306 


                                                                                
                                        


                                                        For the year ended 31 
December 2012 (restated)               


                                                                                
                                     
                                                North                           


Continuing Discontinued          
(in thousands of United States dollars)          Mara Bulyanhulu   Buzwagi    
Other operations  operations7     Total 
                                                                             
                                 
Gold revenue                                  310,549    393,347   259,954      
  -    963,850       75,458 1,039,308 
                                                                             
                                 
Co-product revenue                                549     24,311    23,028      
  -     47,888          143    48,031 
                                                                             
                                 
Total segment revenue                         311,098    417,658   282,982      
  -  1,011,738       75,601 1,087,339 
                                                                             
                                 
Segment cash operating cost1,5              (178,419)  (213,350) (188,652)      
  -  (580,421)     (57,992) (638,413) 
                                                                             
                                 
Corporate administration and exploration     (20,276)   (19,848)  (33,906)    
(361)   (74,391)      (6,136)  (80,527) 
                                                                             
                                 
Other charges and corporate social                                               
                                 
responsibility expenses                      (12,920)         40   (4,944) 
(12,299)   (30,123)      (1,994)  (32,117) 
                                                                             
                                 
EBITDA2                                        99,483    184,500    55,480 
(12,660)    326,803        9,479   336,282 
                                                                             
                                 
Impairment charges                                  -          -         -      
  -          -     (44,536)  (44,536) 
                                                                             
                                 
Depreciation and amortisation5,8             (55,272)   (33,064)  (47,636)  
(3,643)  (139,615)     (19,831) (159,446) 
                                                                             
                                 
EBIT2                                          44,211    151,436     7,844 
(16,303)    187,188     (54,888)   132,300 
                                                                             
                                 
Finance income                                    415        684       457      
500      2,056           46     2,102 
                                                                             
                                 
Finance expense                               (2,036)    (2,304)   (2,558)  
(3,181)   (10,079)        (226)  (10,305) 
                                                                             
                                 
Profit/(loss) before taxation                  42,590    149,816     5,743 
(18,984)    179,165     (55,068)   124,097 
                                                                             
                                 
Tax (credit)/ expense5                       (17,977)   (54,591)   (9,429)    
3,304   (78,693)        6,089  (72,604) 
                                                                             
                                 
Net profit/(loss) for the year                 24,613     95,225   (3,686) 
(15,680)    100,472     (48,979)    51,493 


                                                                                
                                     
                                                                                
                                     
                                                                                


                                 
Capital expenditure:                                                             


                                     
                                                                                


                                 
Sustaining                                     47,759     35,193    56,441    
8,988    148,381       13,157   161,538 
                                                                             
                                 
Expansionary                                   10,091     36,814        62      
  -     46,967        2,922    49,889 
                                                                             
                                 
Capitalised development5                       28,139     45,605    39,456      
  -    113,200        7,258   120,458 
                                                                             
                                 
Reclamation asset addition/(reduction)          7,540       (43)    10,494      
  -     17,991        1,251    19,242 
                                                                             
                                 
Total capital expenditure                      93,529    117,569   106,453    
8,988    326,539       24,588   351,127 


                                                                                
                                     
                                                                                
                                     
                                                                                


                                 
Segmental cash operating cost                 178,419    213,350   188,652      
  -    580,421       57,992   638,413 
                                                                             
                                 
Deduct: co-product revenue                      (549)   (24,311)  (23,028)      
  -   (47,888)        (143)  (48,031) 
                                                                             
                                 
Total cash costs                              177,870    189,039   165,624      
  -    532,533       57,849   590,382 
                                                                             
                                 
Sold ounces3                                  186,600    235,410   155,322      
  -    577,332       45,600   622,932 
                                                                             
                                 
Cash cost per ounce sold2                         953        803     1,066      
  -        922        1,269       948 
                                                                             
                                 
Attributable to outside interests4                                               


                                  (7)
                                                                                


                                 
Total attributable cash cost per ounce                                           
                                 
sold2                                                                            


                                  941
                                                                                
                                     
                                                                                
                                     
                                                                                


                                 
Cash costs per ounce sold2                        953        803     1,066      
  -        922        1,269       948 
                                                                             
                                 
Corporate administration charges                   78         75        78      
  6         83           86        85 
                                                                             
                                 
Rehabilitation - accretion and depreciation        48         10        23      
  -         26          134        34 
                                                                             
                                 
Mine site exploration costs                        31          9         6      
  -         16           48        18 
                                                                             
                                 
Corporate social responsibility expenses           39          5         8      
  6         23           31        24 
                                                                             
                                 
Capitalised stripping/ UG development             151        194       254      
  -        196          159       198 
                                                                             
                                 
Sustaining capital expenditure                    393        149       363      
 10        295          289       302 
                                                                             
                                 
Attributable to outside interests4                                               


                                 (24)
                                                                                


                                 
All-in sustaining cost per ounce sold2          1,693      1,245     1,798      
 22      1,561        2,016     1,585 


                                                                                
                                     
                                                                                
                                     
                                                                                


                                 
Segment carrying value6                       573,980    978,045   721,296  
119,086  2,392,407       11,043 2,403,450 


                                                                                
                                     


1   The CODM reviews cash operating costs for the four operating mine sites
separately from corporate administration costs and exploration costs.
Consequently, the Group has reported these costs in this manner. 
2   These are non-IFRS financial performance measures with no standard meaning
under IFRS. Refer to 'Non IFRS measures' on page 28 for definitions. 
3   Reflects 100% of ounces sold. 
4   Reflects the adjustment for non-controlling interest at Tulawaka. 
5    2012 Restated due to the adoption of IFRIC 20. 
6    Segment carrying values are calculated as shareholders equity after adding
back debt and intercompany liabilities, and subtracting cash and intercompany
assets and include outside shareholders' interests. 
7    Represents Tulawaka, which has been discontinued. 
8    Depreciation and amortisation includes the depreciation component of the
cost of inventory sold. 
Revenue 
                                       For the year ended 31      For the year 
ended 31 
                                                 December                   
December 
                                                                             
    
(in thousands of United States                           2013                    
    
dollars)                                                                2012 
(Restated)3 
                                                                             
    
Gold doré sales                                       659,760                  
  634,363 
                                                                             
    
Gold concentrate sales¹                               226,231                  
  329,487 
                                                                             
    
Copper concentrate sales¹                              37,539                   
41,123 
                                                                             
    
Silver sales                                            5,474                    
6,765 
                                                                             
    
Total                                                 929,004                  
1,011,738 


                                                                                
        


Concentrate sales includes provisional price adjustments to the accounts
receivable balance due to changes in market gold, silver and copper prices
prior to final settlement as follows: US$12.2 million for the year ended 31
December 2013 (US$3.7 million for the year ended 31 December 2012). 
                                       For the year ended 31    For the 
year ended 31
(in thousands of United States dollars)                 December                
 December 
                                                                             
     
Revenue by Location of Customer2                            2013         2012 
(Restated)3 
                                                                             
     
Europe                                                                           


         
                                                                                


     
Switzerland                                              257,914                
  492,460 
                                                                             
     
Germany                                                   73,126                
  114,471 
                                                                             
     
Asia                                                                             


         
                                                                                


     
India                                                    403,956                
  143,796 
                                                                             
     
China                                                    117,099                
  162,140 
                                                                             
     
Japan                                                     76,909                 
98,871 
                                                                             
     
Total revenue                                            929,004                
1,011,738 


                                                                                
         


Revenue by location of customer is determined based on the country to which the
gold is delivered. 
2012 Restated due to the classification of Tulawaka as a discontinued
operation. Refer to note 5 for a discussion. 
Included in revenues for the year ended 31 December 2013 are revenues of
approximately US$681 million (2012: US$856 million) which arose from sales to
four of the Group's largest customers. No other customers individually account
for more than 10% of the Group's revenues. 
Impairment charges 
In accordance with IAS 36 "Impairment of assets" and IAS 38 "Intangible Assets"
a review for impairment of goodwill is undertaken annually, or at any time an
indicator of impairment is considered to exist, and in accordance with IAS 16
"Property, plant and equipment" a review for impairment of long-lived assets is
undertaken at any time an indicator of impairment is considered to exist. The
prevailing gold price fell significantly during the second quarter of 2013 due
to macro-economic factors, mainly as a result of positive economic news from
the United States of America. This forced a review of the gold price outlook
used for long term planning and reserve estimation. Management expect weak
investment demand to drive continued volatility and hold gold prices to an
average of US$1,300 per ounce, a price we consider a market participant would
use to calculate the carrying value of our assets. Given the impact of the
lower gold price outlook and the impact on the reserves, LOM plans and margins
of the operating mines, operating performance was reassessed in order to ensure
optimised returns and cash flows for each cash generating unit. Cash generating
units are determined on the same basis as operating segments. Refer to note 6
for further details. 
At Bulyanhulu, goodwill and property, plant and equipment was reviewed for
impairment due to a reduction in total reserves. The impairment review did not
indicate a need for impairment because the recoverable amount was calculated as
higher than the carrying values. 
As reported in the consolidated financial statements for the year ended 31
December 2012, Buzwagi's cost structure combined with the grade profile made it
most susceptible to changes in the gold price. At Buzwagi, in June 2013 the
mine plan was re-engineered to substantially reduce the amount of waste
movement required and optimise the grade of the mine. This resulted in a
reduction of reserve life, but drove a significant improvement in all-in
sustaining cost and set the mine up to deliver positive cash flows for the next
five years. As a result of the changes we recorded a mid year post-tax
impairment to the long-lived assets at Buzwagi of US$677.5 million and supplies
inventory of US$13.0 million (2012: no impairment charge). 
At North Mara, several changes were made to the plan during the year which will
substantially reduce the strip ratio, volume of material to be moved and
ultimate footprint of the asset. In June 2013, the mine plan was re-engineered
to remove uneconomic ounces from Nyabirama Stage 5 and Gokona Stage 4 and to
improve the overall return from the mine. Further to this, in October it was
decided to defer Gokona Cut 3, which contains 628koz of North Mara's reserve
base, whilst an underground feasibility study into the alternative of mining
out this reserve is finalised. ABG is confident that the outcome of the
underground study will be positive and together with the other changes made
will ensure strong free cash flow generation for North Mara together with an
optimised footprint to alleviate some of the other pressures encountered at the
mine. The reserve base has also been adjusted in line with the lower gold price
assumption at 31 December 2013. The impact of the deferral of Gokona Stage 3
combined with the updated reserve estimates resulted in a year end post tax
impairment of US$96.3 million in addition to the mid year post-tax impairment
to goodwill of US$21.0 million and long-lived assets of US$152.9 million (2012:
no impairment charge). 
At Tulawaka, a review of the supplies balance on hand at the end of June 2013
prompted a supplies inventory impairment of US$16.7 million. 
At 30 June 2013, the recoverable amount for Nyanzaga was calculated on a fair
value less cost to dispose basis, using a comparable enterprise value for
companies holding similar assets to arrive at a value per ounce. Given the
volatility in the market and the lack of comparable transactions in the current
gold price environment, the value of this exploration asset is highly
judgemental. Due to the valuation being below the carrying value, we recorded
mid year impairments relating to the goodwill and acquired exploration
potential intangible asset that arose on the acquisition of Tusker Gold Ltd of
US$22.0 million and subsequent investment in the asset of US$24.6 million. 
The review compared the recoverable amount of assets for the cash generating
units ("CGU") to the carrying value of the CGU's including goodwill. The
recoverable amount of an asset is assessed by reference to the higher of value
in use ("VIU"), being the net present value ("NPV") of future cash flows
expected to be generated by the asset, and fair value less costs to dispose
("FVLCD"). The FVLCD of a CGU is based on an estimate of the amount that the
Group may obtain in a sale transaction on an arm's length basis. There is no
active market for the Group's CGUs. Consequently, FVLCD is derived using
discounted cash flow techniques (NPV of expected future cash flows of a CGU),
which incorporate market participant assumptions. Cost to dispose is based on
management's best estimates of future selling costs at the time of calculating
FVLCD. Costs attributable to the disposal of a CGU are not considered
significant. The expected future cash flows utilised in the NPV model are
derived from estimates of projected future revenues, future cash costs of
production and capital expenditures contained in the LOM plan for each CGU. The
Group's LOM plans reflect proven and probable reserves and are based on
detailed research, analysis and modeling to optimise the internal rate of
return for each CGU. 
The discount rate applied to calculate the present value is based upon the real
weighted average cost of capital applicable to the CGU. The discount rate
reflects equity risk premiums over the risk-free rate, the impact of the
remaining economic life of the CGU and the risks associated with the relevant
cash flows based on the country in which the CGU is located. These risk
adjustments are based on observed equity risk premiums, historical country risk
premiums and average credit default swap spreads for the period. 
The VIU of a CGU is generally lower than its FVLCD, due primarily to the fact
that the optimisation of the mine plans has been taken into account when
determining its FVLCD. Consequently, the recoverable amount of a CGU for
impairment testing purposes is determined based on its FVLCD. 
The key economic assumptions used in the reviews at 30 June and 31 December
2013 were: 
                                             For the year ended 31 For the 
year ended 31 
                                                       December             
 December 


                                                                                
         
                                                               2013             
     2012
                                                                                


     
Gold price per ounce (applied to all periods)              US$1,300             
 US$1,700 
                                                                             
     
South African Rand (US$:ZAR)                                   9.50              


     8.00
                                                                                


     
Tanzanian Shilling (US$:TZS)                                  1,300              


    1,600
                                                                                


     
Long-term oil price per barrel                               US$120              
US$110 
                                                                             
     
Discount rate                                                    5%           
4.16%-5.66% 
                                                                             
     
NPV multiples                                                  1.00             
0.90-1.30 


                                                                                
         
    

On a gross basis, and before taking into account the impact of deferred tax,
the total impairment charge for 2013 amounted to US$690.5 million at Buzwagi,
US$307.3 million at North Mara, US$46.6 million relating to Nyanzaga and
US$16.7 million at Tulawaka.


                                            For the year ended 31  For the 
year ended 31 
                                                      December              
 December 
                                                                             
     
(in thousands of United States dollars)                       2013               


     2012
                                                                                


     
Buzwagi                                                    690,478               


        -
                                                                                


     
North Mara                                                 307,258               


        -
                                                                                


     
Tulawaka1                                                   16,701               
44,536 
                                                                             
     
Tusker/Nyanzaga                                             46,573               


        -
                                                                                


     
Gross impairment charge                                  1,061,010               
44,536 
                                                                             
     
Comprising:                                                                      


         
                                                                                


     
Impairment of goodwill                                      43,069               
13,805 
                                                                             
     
Impairment of intangible assets                             24,550               


        -
                                                                                


     
Impairment of property, plant and equipment                906,822               
30,731 
                                                                             
     
Impairment of non-current inventory                         47,830               


        -
                                                                                


     
Impairment of supplies inventory                            38,739               


        -
                                                                                


     
Gross impairment charge                                  1,061,010               
44,536 
                                                                             
     
Deferred income tax                                      (238,008)               


        -
                                                                                


     
Impairment charge, net of tax                              823,002               
44,536 
                                                                             
      
1 Included in the loss from discontinued operations 
For purposes of testing for impairment of non-current assets, a reasonably
possible change in the key assumptions used to estimate the recoverable amount
for CGU's could result in an additional impairment charge. The carrying value
of the net assets relating to North Mara are most sensitive to changes in key
assumptions in respect of gold price and a US$100 per ounce decrease in
isolation, would lead to an additional impairment at North Mara of US$99.0
million. At the same time, a similar decrease would not result in an impairment
at Buzwagi. However, should the gold price decline further, the mine plans
would again be reassessed in order to optimise returns and cash flows. 
Exploration and Evaluation costs 
The following represents a summary of exploration and evaluation expenditures
incurred at each mine site and significant exploration targets (if applicable). 
                                     For the year ended 31       For the 
year ended 31 
                                                  December                  
  December 
                                                                             
      
(in thousands of United States                                                   
      
dollars)                                                  2013            2012 
(Restated)2 
                                                                             
      
Expensed during the year:                                                        


          
                                                                                


      
North Mara                                               3,099                   


     5,814
                                                                                


      
Buzwagi                                                    366                   


       967
                                                                                


      
Bulyanhulu                                                 656                   


     2,215
                                                                                


      
Other1                                                  12,806                   


    17,756
                                                                                


      
Total expensed                                          16,927                   


    26,752
                                                                                


      
Capitalised during the year:                                                     


          
                                                                                


      
North Mara                                                 410                   


     5,259
                                                                                


      
Bulyanhulu                                               1,945                   


     5,191
                                                                                


      
Nyanzaga                                                 1,608                   


     3,241
                                                                                


      
Total capitalised                                        3,963                   


    13,691
                                                                                


      
Total                                                   20,890                   


    40,443
                                                                                
          


1 - Included in "other" are the exploration activities conducted through ABG
Exploration Africa Limited and ABG Exploration Kenya Limited. All primary
greenfield exploration and evaluation activities are conducted in this Company. 
2 - 2012 Restated due to the classification of Tulawaka as a discontinued
operation. Refer to note 5 for a discussion. Previously, total exploration and
evaluation for 2012 amounted to U$45.5 million. 
Other Charges 
                                                        For the year     
For the year 


                                                                   ended        
    ended


                                                         31 December      
31 December 
                                                                             
     
(in thousands of United States dollars)                             2013 2012 
(Restated)3 
                                                                             
     
Other expenses                                                                   


         
                                                                                


     
 Operational Review costs (including restructuring cost)          13,305         


        -
                                                                                


     
 Discounting of indirect tax receivables                           1,375         


    4,185
                                                                                


     
 Unrealised non-hedge derivative losses                            7,203         


    1,719
                                                                                


     
 Bad debt expense                                                  1,369         


       65
                                                                                


     
 Disallowed indirect taxes                                         1,463         


    2,952
                                                                                


     
 Legal costs                                                       3,138         


    1,655
                                                                                


     
 CNG related costs (residual)                                      3,246         


    6,378
                                                                                


     
 Government levies and charges                                     2,387         


        -
                                                                                


     
 Other                                                             3,617         


    4,547
                                                                                


     
 Total                                                            37,103         
21,501 


                                                                                
         
                                                                                
         
                                                                                


     
Other income                                                                     


         
                                                                                


     
 Profit on disposal of property, plant and equipment                (99)         


    (660)
                                                                                


     
 Foreign exchange gains                                          (3,622)        
  (3,770) 
                                                                             
     
 Insurance theft claim                                           (2,958)         


        -
                                                                                


     
 Total                                                           (6,679)        
  (4,430) 


                                                                                
         
                                                                                
         
                                                                                


     
Total other charges                                               30,424         
17,071 


                                                                                
         
    Finance, Income and Expenses
    Finance income


                                             For the year ended    For the 
year ended 
                                                    31 December           
31 December 
                                                                             
     
(in thousands of United States dollars)                        2013      2012 
(Restated)3 
                                                                             
     
Interest on time deposits                                       937              


    1,185
                                                                                


     
Other                                                           733              


      871
                                                                                


     
Total                                                         1,670              


    2,056
                                                                                
         
    Finance expense


                                             For the year ended    For the 
year ended 
                                                    31 December           
31 December 
                                                                             
     
(in thousands of United States dollars)                        2013      2012 
(Restated)3 
                                                                             
     
Unwinding of discount1                                        4,468              


    3,949
                                                                                


     
Revolving credit facility charges2                            3,050              


    3,014
                                                                                


     
Interest on CIL facility                                      2,413              


        -
                                                                                


     
Interest on finance leases                                      658              


      841
                                                                                


     
Bank charges                                                    756              


    1,062
                                                                                


     
Other                                                           620              


    1,213
                                                                                
         


                                                         11,965              
10,079 
                                                                             
     
Capitalised during the year                                 (2,413)              


        -
                                                                                


     
Total                                                         9,552              
10,079 


                                                                                
         


The unwinding of discount is calculated on the environmental rehabilitation
provision. 
Included in credit facility charges are the amortisation of the fees related to
the revolving credit facility as well as the monthly interest and facility
fees. 
2012 Restated due to the classification of Tulawaka as a discontinued
operation. Refer to note 5 for a discussion. 


    Tax (Credit)/ Expense
    


                                                For the year ended  For the 
year ended 
                                                       31 December         
31 December 
                                                                             
      
(in thousands of United States dollars)                           2013    2012 
(Restated)1 
                                                                             
      
Current tax:                                                                     


          
                                                                                


      
Current tax on profits for the year                                  -           


         -
                                                                                


      
Adjustments in respect of prior years                               40           


       120
                                                                                


      
Total current tax                                                   40           


       120
                                                                                


      
Deferred tax:                                                                    


          
                                                                                


      
Origination and reversal of temporary differences            (187,999)           


    78,573
                                                                                


      
Total deferred tax                                           (187,999)           


    78,573
                                                                                


      
Income tax expense                                           (187,959)           


    78,693
                                                                                
          


1 - 2012 Restated due to the application of IFRIC 20. Refer to note 4 for a
discussion of the change in accounting policy. 


    

The tax on the Group's profit before tax differs from the theoretical amount
that would arise using the weighted average tax rate applicable to the profits
of the consolidated entities as follows:
                                                                     For the       
          


                                                                 year     
For the year 
                                                             ended 31       
  ended 31 
                                                             December       
  December 
                                                                             
      
(in thousands of United States dollars)                              2013 2012 
(Restated)1 
                                                                             
      
(Loss)/profit before tax                                        (928,739)        
179,165 
                                                                             
      
Tax calculated at domestic tax rates applicable to profits in                    
      
the respective countries                                        (292,917)        


    55,025
                                                                                


      
Tax effects of:                                                                  


          
                                                                                


      
(Non-taxable income) / Expenses not deductible for tax purposes    13,111        


     1,333
                                                                                


      
Tax losses for which no deferred income tax asset was                            
      
recognised                                                         84,904        


    18,831
                                                                                


      
Prior year adjustments                                              5,572        


     6,691
                                                                                


      
Effect of tax rates in foreign jurisdictions                        1,371        
(3,187) 
                                                                             
      
Tax charge                                                      (187,959)        


    78,693
                                                                                
          


1 - 2012 Restated due to the application of IFRIC 20. Refer to note 4 for a
discussion of the change in accounting policy. 
Tax periods remain open to review by the Tanzanian Revenue Authority (TRA) in
respect of income taxes for five years following the date of the filing of the
corporate tax return, during which time the authorities have the right to raise
additional tax assessments including penalties and interest. Under certain
circumstances the reviews may cover longer periods. Because a number of tax
periods remain open to review by tax authorities, there is a risk that
transactions that have not been challenged in the past by the authorities may
be challenged by them in the future, and this may result in the raising of
additional tax assessments plus penalties and interest. 
(Loss)/ Earnings Per Share (EPS) 
Basic EPS is calculated by dividing the net profit for the year attributable to
owners of the Company by the weighted average number of Ordinary Shares in
issue during the year. 
Diluted earnings per share is calculated by adjusting the weighted average
number of Ordinary Shares outstanding to assume conversion of all dilutive
potential Ordinary Shares. The Company has dilutive potential Ordinary Shares
in the form of stock options. The weighted average number of shares is adjusted
for the number of shares granted assuming the exercise of stock options. 
At 31 December 2013 and 31 December 2012, earnings per share have been
calculated as follows: 


                                                                                   
      For the     For the year


                                                                             
year ended            ended 
                                                                            
  31 December      31 December 
                                                                             
                          
(in thousands of United States dollars except per share amounts)                 


         2013 2012 (Restated)1
                                                                                


                          
(Loss)/earnings                                                                  


                              
                                                                                


                          
Net (loss)/profit from continuing operations attributable to owners of the       
                          
parent                                                                           


    (740,780)          100,472
                                                                                


                          
Net (loss)/profit from discontinued operations attributable to owners of the     
                          
parent                                                                           


     (40,321)         (37,692)
                                                                                
                              
                                                                                
                              
                                                                                


                          
Weighted average number of Ordinary Shares in issue                             
  410,085,499      410,085,499 
                                                                             
                          
Adjusted for dilutive effect of stock options                                    


            -                -
                                                                                


                          
Weighted average number of Ordinary Shares for diluted earnings per share       
  410,085,499      410,085,499 


                                                                                
                              
                                                                                
                              
                                                                                


                          
(Loss)/earnings per share                                                        


                              
                                                                                


                          
Basic and dilutive (loss)/earnings per share from continuing operations (cents)  


      (180.6)             24.5
                                                                                


                          
Basic and dilutive (loss)/earnings per share from discontinued operations        
                          
(cents)                                                                          


        (9.8)            (9.2)
                                                                                
                              


1 - 2012 Restated due to the application of IFRIC 20. Refer to note 4 for a
discussion of the change in accounting policy. 


    Property, Plant and Equipment
                                                        Mineral                 
        
                                                     properties                 
        
                                                       and mine Assets under    


    
For the year ended 31 December 2013       Plant and development construction     
    
(in thousands of United States dollars)   equipment       costs            ¹    


    Total
                                                                                


    
At 1 January 2013, net of accumulated                                            
    
depreciation                                945,118     819,063      210,859   
1,975,040 
                                                                             
    
Additions                                         -           -      354,328    
 354,328 
                                                                             
    
Disposals/write-downs                         (477)           -            -     
(477) 
                                                                             
    
Impairments2                              (582,669)   (287,276)     (36,877)   
(906,822) 
                                                                             
    
Depreciation                               (84,350)    (56,809)            -   
(141,159) 
                                                                             
    
Transfers between categories                 18,677     121,427    (140,104)     


       -
                                                                                


    
Reclassification to disposal group                                               
    
assets held for sale                              -       (239)            -     
(239) 
                                                                             
    
At 31 December 2013                         296,299     596,166      388,206   
1,280,671 


                                                                                
        
                                                                                
        
                                                                                


    
At 1 January 2013                                                                


        
                                                                                


    
Cost                                      1,475,374   1,250,088      210,859   
2,936,321 
                                                                             
    
Accumulated depreciation                  (530,256)   (431,025)            -   
(961,281) 
                                                                             
    
Net carrying amount                         945,118     819,063      210,859   
1,975,040 


                                                                                
        
                                                                                
        
                                                                                


    
At 31 December 2013                                                              


        
                                                                                


    
Cost                                      1,397,456   1,315,918      425,083   
3,138,457 
                                                                             
    
Accumulated depreciation and impairment (1,101,157)   (719,752)     (36,877) 
(1,857,786) 
                                                                             
    
Net carrying amount                         296,299     596,166      388,206   
1,280,671 


                                                                                
        
    
                                                          Mineral               
        
                                                   properties and               


    
For the year ended 31 December 2012                          mine Assets under   
    
(Restated)                              Plant and     development construction   
    
(in thousands of United States dollars) equipment           costs            ¹  


    Total
                                                                                


    
At 1 January 2012, net of accumulated                                            
    
depreciation                              894,869         765,519      162,859 
1,823,247 
                                                                             
    
Additions                                       -               -      351,127  
 351,127 
                                                                             
    
Disposals/write-downs                     (4,028)               -            -  
 (4,028) 
                                                                             
    
Impairments2                             (16,714)        (14,017)            -  
(30,731) 
                                                                             
    
Depreciation                             (99,359)        (65,216)            - 
(164,575) 
                                                                             
    
Transfers between categories              170,350         132,777    (303,127)   


       -
                                                                                


    
At 31 December 2012                       945,118         819,063      210,859 
1,975,040 


                                                                                
        
                                                                                
        
                                                                                


    
At 1 January 2012                                                                


        
                                                                                


    
Cost                                    1,316,602       1,117,311      162,859 
2,596,772 
                                                                             
    
Accumulated depreciation                (421,733)       (351,792)            - 
(773,525) 
                                                                             
    
Net carrying amount                       894,869         765,519      162,859 
1,823,247 


                                                                                
        
                                                                                
        
                                                                                


    
At 31 December 2012                                                              


        
                                                                                


    
Cost                                    1,475,374       1,250,088      210,859 
2,936,321 
                                                                             
    
Accumulated depreciation and impairment (530,256)       (431,025)            - 
(961,281) 
                                                                             
    
Net carrying amount                       945,118         819,063      210,859 
1,975,040 
                                                                             


        

1 Assets under construction represents (a) sustaining capital expenditures
incurred constructing property, plant and equipment related to operating mines
and advance deposits made towards the purchase of property, plant and
equipment; and (b) expansionary expenditure allocated to a project on a
business combination or asset acquisition, and the subsequent costs incurred to
develop the mine. Once these assets are ready for their intended use, the
balance is transferred to plant and equipment and/or mineral properties and
mine development costs.

2 The impairment relates to long lived assets at Buzwagi, North Mara and
Tulawaka. Refer to note 8 for further details.
    Leases


Property, plant and equipment includes assets relating to the design and
construction costs of power transmission lines and related infrastructure. At
completion, ownership was transferred to TANESCO in exchange for amortised
repayment in the form of reduced electricity supply charges. No future lease
payment obligations are payable under these finance leases. 
Property, plant and equipment also includes emergency back-up generators leased
at the Buzwagi mine under a three-year lease agreement, with an option to
purchase the equipment at the end of the lease term, and spinning power
generators leased under a one-year lease agreement, with an option to extend
the lease for 36 months and an option to purchase the equipment at the end of
the lease term. These leases have been classified as finance leases. 
Property, plant and equipment also includes five drill rigs purchased under
short-term finance leases. 
The following amounts were included in property, plant and equipment where the
Group is a lessee under a finance lease: 


                                                                       As at       
    As at


                                                          31 December     
31 December 
                                                                             
     
 (in thousands of United States dollars)                             2013        


     2012
                                                                                


     
 Cost - capitalised finance leases                                 70,764        
68,846 
                                                                             
     
 Accumulated depreciation                                        (16,430)       
 (14,603) 
                                                                             
     
 Net carrying amount                                               54,334        
54,243 


                                                                                
         
    Goodwill and Intangible Assets
    For the year ended 31 December 2013                    Acquired exploration and 


     
(in thousands of United States dollars)      Goodwill     evaluation properties  


    Total
                                                                                


     
At 1 January, net of accumulated impairment   170,831                   107,390 
  278,221 
                                                                             
     
Additions1                                        136                       452  


      588
                                                                                


     
Impairment2                                  (43,069)                  (24,550) 
 (67,619) 
                                                                             
     
At 31 December 2013                           127,898                    83,292 
  211,190 


                                                                                
         
                                                                                
         
                                                                                


     
At 31 December 2013                                                              


         
                                                                                


     
Cost                                          401,250                   107,842 
  509,092 
                                                                             
     
Accumulated impairment                      (273,352)                  (24,550) 
(297,902) 
                                                                             
     
Net carrying amount                           127,898                    83,292 
  211,190 


                                                                                
         
    For the year ended 31 December 2012                    Acquired exploration and 


     
(in thousands of United States dollars)      Goodwill     evaluation properties  


    Total
                                                                                


     
At 1 January, net of accumulated impairment   178,420                    80,093 
  258,513 
                                                                             
     
Additions                                       6,216                    27,297  
33,513 
                                                                             
     
Impairment                                   (13,805)                         - 
 (13,805) 
                                                                             
     
At 31 December 2012                           170,831                   107,390 
  278,221 


                                                                                
         
                                                                                
         
                                                                                


     
At 31 December 2012                                                              


         
                                                                                


     
Cost                                          401,114                   107,390 
  508,504 
                                                                             
     
Accumulated impairment                      (230,283)                         - 
(230,283) 
                                                                             
     
Net carrying amount                           170,831                   107,390 
  278,221 


                                                                                
         


1 Additions to acquired exploration and evaluation properties and goodwill
relate to additional costs related to the final valuation of the acquisition of
African Barrick Gold Exploration (Kenya) Ltd. 
2 The annual impairment review resulted in an impairment of US$21 million to
goodwill in North Mara and US$22 million and US$24.6 million to goodwill and
acquired exploration and evaluation properties in Tusker/Nyanzaga respectively
(2012: US$13.8 million impairment to goodwill in Tulawaka). The key assumptions
to which the calculation of fair value less costs to dispose for all CGUs are
most sensitive are described in note 8. Refer to note 8 for further details. 


    Goodwill and accumulated impairment losses by operating segments:
    For the year ended 31                                                           


   
December 2013                                                                    
   
(in thousands of United                                                          
   
States dollars)         North Mara Bulyanhulu Discontinued operation    Other   
  Total 
                                                                             
   
At 1 January 2013           21,046    121,546                      -   28,239   
170,831 
                                                                             
   
Impairments               (21,046)          -                      - (22,023)  
(43,069) 
                                                                             
   
Additions                        -          -                      -      136    


    136
                                                                                


   
At 31 December 2013              -    121,546                      -    6,352   
127,898 
                                                                             
   
Cost                       237,524    121,546                 13,805   28,375   
401,250 
                                                                             
   
Accumulated impairments  (237,524)          -               (13,805) (22,023) 
(273,352) 


                                                                                
       
    For the year ended 31                                                           


 
December 2012                                                                    
 
(in thousands of United                                                          
 
States dollars)         North Mara Bulyanhulu Discontinued operation  Other     
Total 
                                                                             
 
At 1 January 2012           21,046    121,546                 13,805 22,023   
178,420 
                                                                             
 
Additions                        -          -                      -  6,216     
6,216 
                                                                             
 
Impairments                      -          -               (13,805)      -  
(13,805) 
                                                                             
 
At 31 December 2012         21,046    121,546                      - 28,239   
170,831 
                                                                             
 
Cost                       237,524    121,546                 13,805 28,239   
401,114 
                                                                             
 
Accumulated impairments  (216,478)          -               (13,805)      - 
(230,283) 


                                                                                
     
    Deferred Tax Assets and Liabilities
    Unrecognised deferred tax assets
    Deferred tax assets have not been recognised in respect of the following items:
    
                                                                     As at      
      As at


                                                           31 December      
31 December 
                                                                             
       
 (in thousands of United States dollars)                              2013       


       2012
                                                                                


       
Tax losses                                                         254,711       


    335,677
                                                                                


       
Total                                                              254,711       


    335,677
                                                                                
           


The above tax losses, which translate into deferred tax assets of approximately
US$85 million (2012: US$98 million), have not been recognised in respect of
these items due to uncertainties regarding availability of tax losses, or there
being uncertainty regarding future taxable income against which these assets
can be utilised. 


    Recognised deferred tax assets and liabilities
    Deferred tax assets and liabilities are attributable to the following:
    Balance sheet classifications
    Balance sheet classification           Assets       Liabilities        Net     
         
                                                                                


     
 (in thousands of United States        2013      2012    2013    2012      2013  
 2012
dollars)                                                                         


         
                                                                                


     
Property, plant and equipment1            -         - 297,421 500,331   297,421 
  500,331 
                                                                             
     
Provisions                         (11,756)  (11,244)       -       -  (11,756) 
 (11,244) 
                                                                             
     
Interest deferrals                 (22,960)  (19,494)     286     562  (22,674) 
 (18,932) 
                                                                             
     
Tusker acquisition                        -         -   7,340  17,313     7,340  
17,313 
                                                                             
     
Aviva acquisition                         -         -   4,565   6,216     4,565  


    6,216
                                                                                


     
Tax loss carry-forwards           (289,821) (320,968)       -       - (289,821) 
(320,968) 
                                                                             
     
Net deferred tax (assets)/                                                       
     
liabilities                       (324,537) (351,706) 309,612 524,422  (14,925) 
  172,716 


                                                                                
         
    Legal entities
    Legal entities                                 Assets        Liabilities  Net  
         
                                                                                


     
 (in thousands of United States dollars)     2013    2012   2013    2012     
2013    2012 
                                                                             
     
North Mara Gold Mine Ltd1                       -       - 10,098  54,381   
10,098  54,381 
                                                                             
     
Bulyanhulu Gold Mine Ltd                        -   (383) 13,594       -   
13,594   (383) 
                                                                             
     
Pangea Minerals Ltd1                     (48,066)       -      -  98,925 
(48,066)  98,924 
                                                                             
     
Other                                     (2,721) (2,016) 12,170  21,809    
9,449  19,794 
                                                                             
     
Net deferred tax (assets)/liabilities    (50,787) (2,399) 35,862 175,115 
(14,925) 172,716 


                                                                                
         


1 - 2012 Restated due to the application of IFRIC 20. Refer to note 4 for a
discussion of the change in accounting policy. 
Uncertainties regarding availability of tax losses in respect of enquiries
raised and additional tax assessments issued by the TRA, have been measured
using the single best estimate of likely outcome approach resulting in the
recognition of substantially all the related deferred tax assets and
liabilities. Alternative acceptable measurement policies (e.g. on a weighted
average expected outcome basis) could result in a change to deferred tax assets
and liabilities being recognised, and the deferred tax charge in the income
statement. 
No deferred tax has been recognised in respect of temporary differences
associated with investments in subsidiaries where the Group is in a position to
control the timing of the reversal of the temporary differences, and it is
probable that such differences will not reverse in the foreseeable future. The
aggregate amount of temporary differences associated with such investments in
subsidiaries is represented by the contribution of those investments to the
Group's retained earnings and amounted to US$327 million (2012: US$134
million). 


    Trade Receivables and other Current Assets
    
                                                                        As at   
           As at
                                                                  31 December   
     31 December
                                                                                


            
(in thousands of United States dollars)                                  2013    


            2012
                                                                                


            
Trade and other receivables:                                                     


                
                                                                                


            
Amounts due from doré and concentrate sales                            16,204   


           33,103
                                                                                


            
Other receivables¹                                                     10,102   


           12,079
                                                                                


            
Due from related parties                                                   37    


             393
                                                                                


            
Less: Provision for doubtful debt on other receivables                (2,133)    


         (1,348)
                                                                                


            
Total trade receivables                                                24,210    


          44,227
                                                                                
                


1 Other receivables relates to employee and supplier backcharge-related
receivables. 
Trade receivables other than concentrate receivables are non-interest bearing
and are generally on 30-90 day terms. Concentrate receivables are generally on
60-120 day terms depending on the terms per contract. Trade receivables are
amounts due from customers in the ordinary course of business. If collection is
expected in one year or less, they are classified as current assets; if not,
they are presented as non-current assets. The carrying value of trade
receivables recorded in the financial statements represents the maximum
exposure to credit risk. The Group does not hold any collateral as security. 
Trade receivables are recognised initially at fair value and subsequently
measured at amortised cost using the effective interest method, less any
provisions for impairment. A provision for impairment of trade receivables is
established when there is objective evidence that the Group will not be able to
collect all amounts due according to the original terms of the receivables. 


                                                                          As at    
    As at


                                                             31 December  
31 December 
                                                                             
     
(in thousands of United States dollars)                                 2013     


     2012
                                                                                


     
Indirect taxes receivable2                                           159,824     
98,678 
                                                                             
     
Other receivables and advance payments³                               18,912    


    18,291
                                                                                
         


                                                                 178,736    
  116,969 
                                                                             
     
Less: Indirect taxes receivable classified as non-current           (64,791)    
 (72,655) 
                                                                             
     
Other current assets                                                 113,945     
44,314 


                                                                                
         


2 To reflect the time value of money the long-term portion of this receivable
has been discounted at a rate of 5% (2012: 5%). 
3 Other receivables and advance payments relate to prepayments for insurance
and income taxes offset against outstanding refunds for VAT and fuel levies and
current amounts receivable from the NSSF of US$7.0 million (2012: US$6.4
million). 
Borrowings 
At the beginning of the year a US$142 million facility was put in place to fund
the bulk of the costs of the construction of one of ABG's key growth projects,
the Bulyanhulu CIL Expansion project ("Project"). The Facility is
collateralised by the Project, has a term of seven years with a spread over
Libor of 250 basis points. The interest rate has been fixed at 3.6% through the
use of an interest rate swap. The 7 year Facility is repayable in equal
instalments over the term of the Facility, after a two year repayments holiday
period. The full facility of $142 million was drawn at the end of the year.
Interest accrued to the value of $0.7 million was included in accounts payable
at year end. Interest incurred on the borrowings as well as hedging losses on
the interest rate swap have been capitalised as an asset. 
Provisions 
                                          Rehabilitation¹        Other²      
  Total     
                                                                             
     
(in thousands of United States dollars)     2013    2012    2013    2012     
2013    2012 
                                                                             
     
At 1 January                             180,548 157,582   1,040   1,034  
181,588 158,616 
                                                                             
     
Change in estimate                      (30,740)  19,242     524       6 
(30,216)  19,248 
                                                                             
     
Utilised during the year                 (5,843)   (297)       -       -  
(5,843)   (297) 
                                                                             
     
Unwinding of discount                      4,496   4,021       -       -    
4,496   4,021 
                                                                             
     
Reclassification to disposal group                                               
     
liabilities held for sale               (16,760)               -         
(16,760)       - 
                                                                             
     
At 31 December                           131,701 180,548   1,564   1,040  
133,265 181,588 
                                                                             
     
Current portion                                -       - (1,028) (1,040)  
(1,028) (1,040) 
                                                                             
     
Non-current portion                      131,701 180,548     536       -  
132,237 180,548 


                                                                                
         


1 Rehabilitation provisions relate to the decommissioning costs expected to be
incurred for the operating mines. This expenditure arises at different times
over the LOM for the different mine sites and is expected to be utilised in
terms of cash outflows between years 2014 and 2050 and beyond, varying from
mine site to mine site. 
2 Other provisions relate to provisions for legal and tax-related liabilities
where the outcome is not yet certain but it is expected that it will lead to a
probable outflow of economic benefits in future. 
Rehabilitation obligations arise from the acquisition, development,
construction and normal operation of mining property, plant and equipment, due
to government controls and regulations that protect the environment on the
closure and reclamation of mining properties. The major parts of the carrying
amount of the obligation relate to tailings and heap leach pad closure/
rehabilitation; demolition of buildings/mine facilities; ongoing water
treatment; and ongoing care and maintenance of closed mines. The fair values of
rehabilitation provisions are measured by discounting the expected cash flows
using a discount factor that reflects the credit-adjusted risk-free rate of
interest. ABG prepares estimates of the timing and amount of expected cash
flows when an obligation is incurred and updates expected cash flows to reflect
changes in facts and circumstances. The principal factors that can cause
expected cash flows to change are: the construction of new processing
facilities; changes in the quantities of material in reserves and a
corresponding change in the LOM plan; changing ore characteristics that impact
required environmental protection measures and related costs; changes in water
quality that impact the extent of water treatment required; and changes in laws
and regulations governing the protection of the environment. 
Each year ABG assesses cost estimates and other assumptions used in the
valuation of the rehabilitation provision at each mineral property to reflect
events, changes in circumstances and new information available. Changes in
these cost estimates and assumptions are recorded as an adjustment to the
carrying amount of the corresponding asset. Rehabilitation provisions are
adjusted to reflect the passage of time (accretion) calculated by applying the
discount factor implicit in the initial fair-value measurement to the
beginning-of-period carrying amount of the provision. Settlement gains/losses
will be recorded in other (income) expense. 
Other environmental remediation costs that are not rehabilitation provisions
are expensed as incurred. 
Commitments and Contingencies 
The Group is subject to various laws and regulations which, if not observed,
could give rise to penalties.  As at 31 December 2013, the Group has the
following commitments and/ or contingencies 
            
Legal contingencies 
As at 31 December 2013, the Group was a defendant in approximately 333
lawsuits. The plaintiffs are claiming damages and interest thereon for the loss
caused by the Group due to one or more of the following: unlawful eviction,
termination of services, wrongful termination of contracts of service,
non-payment for services, defamation, negligence by act or omission in failing
to provide a safe working environment, unpaid overtime and public holiday
compensation. 
The total amounts claimed from lawsuits in which specific monetary damages are
sought amounted to US$142.8 million. The Group's Legal Counsel is defending the
Group's current position, and the outcome of the lawsuits cannot presently be
determined. However, in the opinion of the Directors and Group's Legal Counsel,
no material liabilities are expected to materialise from these lawsuits.
Consequently no provision has been set aside against the claims in the books of
account. 
Included in the total amounts claimed is an appeal by the TRA intended for a
tax assessment of US$21.3 million in respect of the acquisition of Tusker Gold
Limited. The case was awarded in favour of ABG however the TRA has served a
notice of appeal. The calculated tax assessment is based on the sales price of
the Nyanzaga property of US$71 million multiplied by the tax rate of 30%.
Management is of the opinion that the assessment is invalid due to the fact
that the acquisition was for Tusker Gold Limited, a company incorporated in
Australia. The shareholding of the Tanzanian related entities did not change
and the Tusker Gold Limited group structure remains the same as prior to the
acquisition. 
Also included in the total amounts claimed are TRA claims to the value of $41.3
million for withholding tax on historic offshore dividend payments paid by ABG
plc to its shareholders. In addition to the claim, there are six other
withholding tax claims which have not been quantified. These claims are made on
the basis that ABG is resident in Tanzania for tax purposes. Management are of
the opinion that the claims do not have substance and that it will be
successfully defended. 
Tax-related contingencies 
i.  On 26 October 2009 the TRA issued a demand notice against the Group for an
amount relating to withholding tax on technical services provided to Bulyanhulu
Gold Mine Ltd. The claim amounts to US$5.4 million. Management is of the
opinion that the Group complied with all of the withholding tax requirements,
and that there will be no amount payable, therefore no provision has been
raised. 
ii. The TRA has issued a number of tax assessments to the Group relating to
past taxation years from 2002 onwards. The Group believes that these
assessments are incorrect and has filed objections to each of them. The Group
is attempting to resolve these matters by means of discussions with the TRA or
through the Tanzanian Appeals process. During the year under review the Board
ruled in favour of BGML in relation to 7 of 10 issues raised by the TRA in
final assessments for 2000 - 2006 years under review. The TRA filed a notice of
intention to appeal against the ruling of the Board, while ABG has filed a
counter appeal in respect of BGML to the Appeals Tribunal for all 3 items that
were lost. The positions that were ruled against BGML were sufficiently
provided for in prior year results and management is of the opinion that open
issues will not result in any material liabilities to the Group. 
Exploration and development agreements - Mining Licences 
Pursuant to agreements with the Government of the United Republic of Tanzania,
the Group was issued special mining licences for Bulyanhulu, Buzwagi, North
Mara and Tulawaka mines and mining licences for building materials at
Bulyanhulu and Buzwagi Mines. The agreement requires the Group to pay to the
government of Tanzania annual rents of US$5,000 per annum per square kilometre
for as long as the Group holds the special mining licences and US$2,000 per
annum per square kilometre for so long as the Group holds the mining licences
for building materials. The total commitment for 2014 for the remaining special
mining licences and mining licences for building materials amount to US$0.65
million (2012: US$0.8 million). Subsequent to year-end, the transferral of the
Tulawaka Special Mining License to STAMICO was approved. 
Purchase commitments 
At 31 December 2013, the Group had purchase obligations for supplies and
consumables of approximately US$48 million (2012: US$65 million). 
Capital commitments 
In addition to entering into various operational commitments in the normal
course of business, the Group entered into contracts for capital expenditure of
approximately US$6 million in 2013 (2012: US$51 million). 
Post Balance Sheet Events 
A final dividend of US2.0 cents per share has been proposed, which will result
in a total dividend of US2.0 cents per share for 2013. The final dividend is to
be proposed at the Annual General Meeting on 24 April 2014. These financial
statements do not reflect this dividend payable. 
ABG will declare the final dividend in US dollars. Unless a shareholder has
elected or elects to receive dividends in US dollars, dividends will be paid in
pounds sterling with the US dollar amount being converted into pounds sterling
at exchange rates prevailing on or around 9 May 2014. Currency elections must
be made by return of currency election forms. The deadline for the return of
currency election forms is 6 May 2014. 
Reserves and Resources 
Mineral reserves and mineral resources estimates contained in this report have
been calculated as at 31 December 2013 in accordance with National Instrument
43-101 as required by Canadian securities regulatory authorities, unless
otherwise stated. Canadian Institute of Mining, Metallurgy and Petroleum (CIM)
definitions were followed for mineral reserves and resources. Calculations have
been reviewed, verified (including estimation methodology, sampling, analytical
and test data) and compiled by ABG personnel under the supervision of ABG
Qualified Persons: Nic Schoeman, General Manager Technical Services, Ray
Swanson, Mineral Resource Manager, and Samuel Eshun, Chief Mine Planning
Engineer. However, the figures stated are estimates and no assurances can be
given that the indicated quantities of metal will be produced. In addition,
totals stated may not add up due to rounding. 
Mineral reserves have been calculated using an assumed long-term average gold
price of US$1,300.00 per ounce, a silver price of US$21.00 per ounce and a
copper price of US$3.00 per pound. Reserve calculations incorporate current and
/or expected mine plans and cost levels at each property. 
Mineral resources at ABG mines have been calculated using an assumed long-term
average gold price of US$1,500.00 per ounce, a silver price of US$24.00 per
ounce and a copper price of US$3.50 per pound. 
Resources have been estimated using varying cut-off grades, depending on the
type of mine or project, its maturity and ore types at each property. Reserve
estimates are dynamic and are influenced by changing economic conditions,
technical issues, environmental regulations and any other relevant new
information and therefore these can vary from year to year. Resource estimates
can also change and tend to be influenced mostly by new information pertaining
to the understanding of the deposit and secondly the conversion to ore
reserves. In addition, estimates of inferred mineral resources may not form the
basis of an economic analysis and it cannot be assumed that all or any part of
an inferred mineral resource will ever be upgraded to a higher category.
Therefore, investors are cautioned not to assume that all or any part of an
inferred mineral resource exists, that it can be economically or legally mined,
or that it will ever be upgraded to a higher category. Likewise, investors are
cautioned not to assume that all or any part of measured or indicated mineral
resources will ever be upgraded to mineral reserves. Tulawaka mineral reserves
and resources are stated as ABG's 70% attributable portion. 
See www.africanbarrickgold.com for 
Mine Gold Reserves & Resources 
Contained Copper Reported within Gold Reserves & Resources 
Contained Silver Reported within Gold Reserves & Resources 
Mine Gold Reserves, 
Mine Resources (Measured & Indicated, exclusive of Reserves) 
END 
-0- Feb/12/2014 07:00 GMT
 
 
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