AFRICAN BARRICK GOLD PLC: Half-year 2014 results

AFRICAN BARRICK GOLD 
25 July 2014 
Results for the 6 months ended 30 June 2014 (Unaudited) 
Based on IFRS and expressed in US Dollars (US$) 
African Barrick Gold plc ("ABG'') reports half year 2014 results 
"We are pleased to report strong results for H1 2014, with increased production
and continued cost discipline enabling the business to return to cash
generation," said Brad Gordon, Chief Executive Officer of African Barrick Gold.
"We have now delivered our seventh successive reduction in quarterly all-in
sustaining costs (AISC) as we continue to drive operational improvements
through the business. During H1 2014 we produced 346,581 ounces of gold, an
improvement of 13% on the same period in 2013, at an AISC of US$1,118 per
ounce, a reduction of 25% on the previous year. During the second quarter, we
delivered the first ounces from the Bulyanhulu CIL Expansion project with
development work on the Bulyanhulu Upper East zone and the Gokona underground
exploration portal progressing to plan. As a result of the strong H1 2014
performance and the incorporation of the expected production from Bulyanhulu
Upper East, we now expect full year gold production to be in excess of 700,000
ounces whilst continuing to target an AISC at the bottom of our guidance range
of US$1,100-1,175 per ounce." 
Operational Highlights 
Q2 gold production of 178,206 ounces, 8% higher than Q2 2013, with gold sales
of 171,563 ounces 
Q2  AISC1,2 of US$1,105 per ounce sold, 21% lower than Q2 2013, with cash
costs1,2 of US$749 per ounce 
H1 gold production of 346,581 ounces with gold sales of 330,947 ounces, 13% and
5% respectively, higher than H1 2013 
H1 AISC1,2 of US$1,118 per ounce sold and cash costs1,2 of US$752, respectively
down 25% and 14% on H1 2013 
First ounces produced from the Bulyanhulu CIL Expansion project, with final
commissioning due to complete in Q3 2014 
Bulyanhulu Upper East and North Mara Underground projects progressing well and
on schedule 
Continued strong results from the West Kenya Exploration Project 
Financial Highlights 
Cash position increased during Q2 2014 by US$16 million to stand at US$270
million as at 30 June 2014 
H1 revenue of US$446 million, 9% below H1 2013, as the impact of a lower
average realised gold price more than offset increased sales volumes 
H1 EBITDA1,3 of US$132 million, 1% higher than H1 2013, due to lower cash costs 
H1 net earnings1,3 of US$41 million (US10.0 cents per share) impacted by a
higher non cash tax charge during Q2 2014 
H1 operational cash flow increased to US$127 million (28% higher than H1 2013) 
H1 capital expenditure of US$115 million, 45% lower than H1 2013 due to revised
mine plans and stringent capital controls 
Interim dividend of US1.4 cents per share declared, based on a new cash flow
based metric 
                                                Three months ended 30 June  
Six months ended 30 June    
                                                                             
                    
  (Unaudited)                                          2014           20132     
2014            20132    
                                                                             
                    
  Gold Production (ounces)                          178,206         164,439  
346,581          307,198    
                                                                             
                    
  Gold Sold (ounces)                                171,563         170,092  
330,947          314,369    
                                                                             
                    
  Cash cost (US$/ounce)1                                749             862     
 752              876    
                                                                             
                    
  AISC (US$/ounce)1                                   1,105           1,404    
1,118            1,483    
                                                                             
                    
  Average realised gold price (US$/ounce)1            1,277           1,366    
1,290            1,480    
                                                                             
                    
  (in US$'000)                                                                   


                        
                                                                                


                    
  Revenue                                           229,222         241,900  
445,509          487,360    
                                                                             
                    
  EBITDA1,3                                          66,959          48,828  
131,621          130,771    
                                                                             
                    
  Net earnings/(loss)3                               18,412       (721,946)   
40,822        (701,230)    
                                                                             
                    
  Basic earnings/(loss) per share (EPS) (cents)3        4.5         (176.0)     
10.0          (171.0)    
                                                                             
                    
  Cash generated from operating activities           76,381          41,691  
127,107           99,017    
                                                                             
                    
  Capital expenditure4                               58,964         103,347  
114,744          209,056    


                                                                                
                        
    1 These are non-IFRS measures. Refer to page 23 for definitions             
                            
                                                                                
                        
    2 2013 comparative amounts have been restated to exclude Tulawaka           
                            
    3 EBITDA and net earnings consist of earnings from both continuing and
      discontinued operations
    4 Excludes non-cash reclamation asset adjustments and includes finance
      lease purchases


Operational Review

Our continued delivery on the cost saving targets set out at the start of the
Operational Review is highlighted by a further reduction in Q2 2014 AISC of 2%
over Q1 2014 and an H1 2014 reduction of 25% over the previous period. Together
with a strong production profile, this enabled ABG to deliver a return to net
cash flow generation during Q2 2014.  We remain committed and on track to
deliver against the US$185 million cost saving target as previously set out and
reflected in our AISC guidance.

Safety
 
During the first half of the year, Bulyanhulu regrettably experienced one
fatality. On 25 March 2014, Emmanuel Mrutu, one of our underground employees
sadly passed away as a result of injuries sustained following a fall-of-ground
incident. We have completed internal and external investigations into this
tragic incident in order to mitigate any future reoccurrence. As a mark of
respect operations ceased for a 24 hour period.

During the second quarter Bulyanhulu experienced a non-operational fatality
which led to two weeks of disrupted operations at the mine. On 20 May 2014, an
underground employee went missing following a night shift. All mining
operations were initially ceased and an intensive search operation was
launched. On 1 June 2014, the body of the deceased was found and investigations
by the Tanzanian authorities have subsequently determined that regrettably the
employee took his own life.

Ensuring the safety of all our employees is paramount, and we have continuously
improved our safety performance at all of our operations over the past few
years. In this regard, we have launched a behavioural safety programme called
WeCare at each of our operations to further enhance our safety processes.

Board Changes

During the six months ended 30 June 2014, David Hodgson stepped down as
Non-Executive Director of the Company. The ABG Board now comprises eleven
Directors, including seven Independent Non-Executive Directors, one Executive
Director and three nominees from Barrick Gold Corporation.

Indirect Taxes

Further progress has been made with respect to the build up of VAT, and the
Company received net refunds of US$18 million during the second quarter,
bringing total net refunds for H1 2014 to approximately US$28 million. We have
also continued discussions with the Tanzanian Government on the establishment
of an appropriate mechanism to safeguard the recoverability of VAT payments
over the long term. In this regard, we have submitted proposals for the
establishment of an escrow account for VAT paid on domestic goods, similar to
that currently used to provide for the refunding of VAT paid on imports and are
awaiting further feedback on this proposal. As at 30 June 2014, the outstanding
amount relating to the total indirect tax receivable, not covered by the 2011
Memorandum of Settlement, stood at US$66 million, roughly US$30 million lower
than 31 December 2013.

Bulyanhulu Upper East

In April 2014 the Board approved the next step in the optimisation of
Bulyanhulu through the acceleration of mining from the Upper East Zone. The
Zone is expected to produce 1.7 million ounces of gold, averaging 60,000 ounces
per annum over a life in excess of 25 years at an AISC of below our target run
rate for Bulyanhulu for year-end 2015 of US$900 per ounce.

Following the Board approval, the mine undertook waste development in the Zone
at a capital cost of US$4.7 million in Q2 2014. As expected, the mine will
commence ore development in Q3 2014 and this is expected to lead to production
from the Upper East Zone of approximately 15,000 ounces of gold in H2 2014,
weighted towards the fourth quarter. ABG continues to expect that the 2014
capital requirements for the project will be approximately US$15 million. All
capital associated with the project to date has been categorised as capitalised
development and is included in the Bulyanhulu and Group AISC figures.

Bulyanhulu Deep West

We have also progressed the accelerated development of the Bulyanhulu Deep West
Zone through a contractor to increase access to higher grade ore from Q4 2014.
During Q2 2014 we incurred underground development capital costs of US$4.8
million for the project and we expect to incur similar costs per quarter for
the remainder of 2014. This will be categorised as capitalised development and
is included in the Bulyanhulu and Group AISC figures.

Bulyanhulu CIL Expansion

During the second quarter, we progressed the commissioning of the new CIL
circuit at Bulyanhulu, which will add over 40,000 ounces per annum once fully
operational, and are nearing completion of the commissioning stage. Towards the
end of June, roughly 6,500 tonnes of rougher tailings were treated and pumped
into the new CIL circuit, resulting in 273 ounces of gold being produced in
circuit. We expect commissioning to be complete in early Q3 2014 with the first
gold pour in August and the ramp up of production to continue throughout the
third quarter. We continue to expect production of 20,000 ounces in 2014 from
the project, and are investigating an option for accelerating the retreatment
of the historic higher grade tailings in preference to the rougher tailings.
    Gokona Underground

The feasibility study into the potential to mine Gokona Cut 3 via an
underground operation progressed well in the second quarter and is on track to
be presented to the Board for approval in Q4 2014. During Q2 2014, ABG made the
final decision on the location of the exploration portal which will provide the
opportunity to develop a better understanding of the ore body, provide initial
access to ore and drilling access to the deeper extensions of the ore body.
Early works towards the construction of the portal are in progress with the
first blast due in August. The total expansionary capital cost of the portal is
expected to be around US$10 million.

Interim dividend

To ensure that our dividend policy is more closely aligned with the cash
generation of the business, the Board of Directors have approved an amendment
to the existing dividend policy such that rather than being based on net
earnings it will now be based on operational cash flow after sustaining capital
and capitalised development but before expansion capital.

The Board believes this metric more appropriately reflects both ABG's and the
wider market's focus on cash flow generation as well as the commitment to
ongoing capital returns to shareholders. The dividend payout ratio of 15%-30%
and the timing of the payment, being 1/3 of the dividend as an interim dividend
and the balance as a final dividend, remain unchanged.

In line with the above change, the Board of Directors is pleased to announce
the approval of an interim dividend for 2014 of US1.4 cents per share, an
increase of 40% when compared to H1 2013.  

The interim dividend will be payable on 22 September 2014 to holders on record
at 29 August 2014. The ex-dividend date will be 27 August 2014. ABG will
declare the interim dividend in US dollars. Unless a shareholder elects to
receive dividends in US dollars, they will be paid in pounds sterling with the
US dollar amount being converted into pounds sterling at the exchange rate
prevailing at the time. The last date for receipt of currency elections will be
2 September 2014. The exchange rate for the conversion of the interim dividend
will be elected on or around 4 September 2014.

Outlook

Over the past six months we have continued to deliver a strong performance from
our operating portfolio, with sustainable cost containment across each of the
mines and production growth led by North Mara. As we move into the second half
of the year we expect the contribution from Bulyanhulu to increase as we begin
to access higher grade areas, and both the CIL Expansion and the Upper East
projects begin to contribute ounces. At North Mara, we expect the head grade to
drop in the second half of the year as the high grade ore from Gokona will be
increasingly blended with lower grade material from Nyabirama. At Buzwagi, we
expect the grade to revert to between 1.5-1.6g/t in the second half, but
anticipate that throughput levels will increase.

Following the approval of the Upper East Project and the Gokona Underground
portal in Q2 2014 we expect capital expenditure for the year to be between
US$255-275 million. Sustaining capital (including land purchases) is expected
to be US$80-90 million, with an acceleration of spending in the second half of
the year versus H1 2014. Capitalised development is expected to total
US$125-135 million as a result of the accelerated development of the Bulyanhulu
Deep West Zone together with the categorisation of the Bulyanhulu Upper East
project as capitalised development. Expansionary capital is expected to amount
to US$50 million which incorporates reduced residual CIL Expansion spend and
the Gokona Underground portal.  

As a result of the strong performance in H1 2014 and the addition of the Upper
East ounces into the 2014 plan, we are revising production guidance upwards for
the year to in excess of 700,000 ounces. We maintain our guidance for cash
costs of US$740 to US$790 per ounce and all-in sustaining costs of US$1,100 to
US$1,175 per ounce sold, and are targeting the bottom of both these ranges.

Key statistics - restated to reflect Tulawaka as a discontinued operation
                                             Three months     Six months ended 
                                             ended 30 June         30 June     


                                                                           
(Unaudited)                                    2014    20133      2014    20133 
                                                                           
Tonnes mined (thousands of tonnes)           10,355   15,141    19,892   29,118 
                                                                           
Ore tonnes mined (thousands of tonnes)        2,115    1,727     3,908    3,378 
                                                                           
Ore tonnes processed (thousands of tonnes)    1,925    2,072     3,770    3,983 
                                                                           
Process recovery rate (percent)               89.8%    88.8%     89.5%    88.9% 
                                                                           
Head grade (grams per tonne)                    3.2      2.7       3.2      2.7 
                                                                           
Gold production (ounces)                    178,206  164,439   346,581  307,198 
                                                                           
Gold sold (ounces)                          171,563  170,092   330,947  314,369 
                                                                           
Copper production (thousands of pounds)       3,454    3,122     6,430    5,584 
                                                                           
Copper sold (thousands of pounds)             2,874    2,756     5,391    6,113 
                                                                           
Cash cost per tonne milled (US$/t)               67       71        66       69 
                                                                           
Per ounce data                                                                  
                                                                            
 Average spot gold price²                 1,288    1,415     1,291    
1,523 


                                                                               
     Average realised gold price1             1,277    1,366     1,290    1,480
                                                                               
     Total cash cost1                           749      862       752      876
                                                                               
     All-in sustaining cost1                  1,105    1,404     1,118    1,483


                                                                           
Average realised copper price (US$/lb)         3.16     3.04      3.07     3.23 
                                                                            
Financial results - restated to reflect Tulawaka as a discontinued operation 
                                                  Three months ended   Six 
months ended 30 
                                                        30 June             
  June         
                                                                             
          
(Unaudited, in US$'000 unless otherwise stated)            2014     20133       
2014     20133 
                                                                             
          
Continuing operations:                                                           


              
                                                                                


          
Revenue                                                 229,222   241,900    
445,509   487,360 
                                                                             
          
Cost of sales                                         (173,333) (203,348)  
(332,474) (386,733) 
                                                                             
          
Gross profit                                             55,889    38,552    
113,035   100,627 
                                                                             
          
Corporate administration                                (7,618)   (9,169)   
(13,975)  (17,583) 
                                                                             
          
Share based payments                                    (1,593)       425    
(4,917)     3,861 
                                                                             
          
Exploration and evaluation costs                        (6,025)   (4,126)   
(10,995)   (7,715) 
                                                                             
          
Corporate social responsibility expenses                (1,811)   (3,077)    
(4,307)   (6,228) 
                                                                             
          
Impairment charges                                            - (910,989)        
- (910,989) 
                                                                             
          
Other charges                                           (6,159)  (12,659)   
(12,782)  (15,597) 
                                                                             
          
Profit/(loss) before net finance expense and taxation    32,683 (901,043)     
66,059 (853,624) 
                                                                             
          
Finance income                                              280       407       
 630       995 
                                                                             
          
Finance expense                                         (2,102)   (2,177)    
(4,504)   (4,696) 
                                                                             
          
Profit/(loss) before taxation                            30,861 (902,813)     
62,185 (857,325) 
                                                                             
          
Tax (expense)/credit                                   (12,047)   198,907   
(22,716)   184,648 
                                                                             
          
Net profit/(loss) from continuing operations             18,814 (703,906)     
39,469 (672,677) 
                                                                             
          
Discontinued operations:                                                         


              
                                                                                


          
Net (loss)/profit from discontinued operations            (402)  (25,722)       
 886  (40,741) 
                                                                             
          
Net profit/(loss) for the period                         18,412 (729,628)     
40,355 (713,418) 
                                                                             
          
Attributed to:                                                                   


              
                                                                                


          
 Owners of the parent (net earnings)                     18,412 (721,946)     
40,822 (701,230) 
                                                                             
          
- Continuing operations                                  18,814 (703,906)     
39,469 (672,677) 
                                                                             
          
- Discontinued operations                                 (402)  (18,040)      
1,353  (28,553) 
                                                                             
          
 Non-controlling interests                                    -   (7,682)      
(467)  (12,188) 
                                                                             
          
- Discontinued operations                                     -   (7,682)      
(467)  (12,188) 
                                                                             
          
1 These are non-IFRS financial performance measures with no standard meaning
under IFRS. Refer to "Non IFRS measures"' on page 23 for definitions. 
2 Reflect the London PM fix price. 
3 Restated for the reclassification of Tulawaka as a discontinued operation. 
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. Barrick Gold Corporation
is 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 25 July 2014 at
11:30am London time. 
The access details for the conference call are as follows: 
Participant dial in:                +44 (0) 203 003 2666 / +1 866 966 5335 


                Password:                             ABG

A recording of the conference call will be made available at 
www.africanbarrickgold.com/investors/financial-reports/2014.aspx 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,  the ongoing implementation of operational
reviews, 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                                                               
      


                                                                           
Interim Operating Review                                                   7    
Exploration Review                                                         12   
                                                                           
Financial Review                                                           14   
                                                                           
Going Concern Statement                                                    22   
                                                                           
Non-IFRS measures                                                          23   
                                                                          
Risk Review                                                                25   
                                                                           
Directors' Responsibility Statement                                        25   
                                                                           
Auditor's Review Report                                                    26   
                                                                           
Condensed Interim Financial Information:                                        
                                                                           
- Consolidated Income Statement and Consolidated Statement of              27/ 
Comprehensive Income                                                       28   
                                                                          
- Consolidated Balance Sheet                                               29   
                                                                             
- Consolidated Statement of Changes in Equity                              30   
                                                                           
- Consolidated Statement of Cash Flows                                     31   
                                                                           
- Notes to the Consolidated Interim Financial Information                  32   


        

Interim Operating Review

Half Year Review

For the first half of 2014 revenue amounted to US$445.5 million, 9% lower than
the same period in 2013. Production of 346,581 ounces drove a 5% increase in
sales volumes (16,578 ounces) but this was more than offset by a 13% decrease
in the average realised gold price of US$1,290 per ounce, down from US$1,480 in
H1 2013. EBITDA increased by 1% to US$131.6 million in H1 2014 despite the
lower revenue, mainly due to a US$30.2 million reduction in direct mining
costs, reflected in the 25% reduction of AISC to US$1,118 per ounce.

Operationally, North Mara continued to mine high grade material from the Gokona
pit which drove H1 2014 production of 138,816 ounces, up 8% on the prior year
period, and AISC down by 29% to US$936 per ounce sold. Bulyanhulu saw a 9%
increase in head grade and a marginal increase in throughput which drove up H1
2014 production by 13% to 105,420 ounces and AISC down by 21% to US$1,249 per
ounce sold. Buzwagi saw a 34% reduction in total tonnes mined over the first
half of the year against H1 2013 which helped to reduce AISC by 29% to US$1,169
per ounce sold. Production increased to 102,344 ounces as a result of higher
grade material milled which more than offset the reduction in throughput.

As a result of operational and working capital improvements, cash generated
from operating activities in H1 2014 increased by 28% over the prior year
period to US$127.1 million, in spite of the reduction in the average realised
sales price. Over the first six months of the year this was US$4.5 million
lower than EBITDA, but in Q2 2014 the Company generated positive net cash flows
of US$15.5 million.

Our cash balance as at 30 June 2014 amounted to US$269.6 million.

Capital expenditure for the six months ended 30 June 2014 amounted to US$114.7
million compared to US$209.1 million in H1 2013. Capital expenditure primarily
comprised capitalised development expenditure (US$69.0 million), including
US$4.7 million related to waste development from the Bulyanhulu Upper East
project and US$4.8 million related to the Bulyanhulu Deep West project,
investment in the Bulyanhulu CIL Expansion project (US$24.9 million),
investments in tailings and infrastructure (US$9.6 million) and component and
equipment costs (US$6.7 million).

Second Quarter Review

The second quarter delivered positive results, with total production of 178,206
ounces, an increase of 8% on Q2 2013. Sales ounces amounted to 171,563, 4%
lower than production due to the timing of concentrate production at the end of
the quarter. Copper production for the quarter of 3.5 million pounds was 11%
higher than in Q2 2013 (3.1 million pounds), due to higher copper grades,
mainly at Buzwagi.

North Mara continued its strong performance during the quarter with a 10% year
on year increase in production due to improved throughput rates as a result of
improved mill utilisation rates. The improved throughput rate was marginally
offset by a 3% decrease in head grade.

At Bulyanhulu, production of 50,241 ounces was 9% down on Q2 2013 due to lower
throughput as a result of ore shortages given the disruption of mining
operations for two weeks in May 2014 following a non-operational fatality.
Lower throughput was offset by a 6% increase in head grade as a result of
higher mined grade given improved availability of high grade stopes.

At Buzwagi, gold production for the quarter of 57,787 ounces was 26% higher
than in Q2 2013 driven by a 36% increase in head grade. Throughput rates were
negatively impacted by lower mill availability primarily as a result of the
re-lining of both the SAG and Ball mills during the quarter, while ore mined
was 67% higher in Q2 2013 year due to previously communicated changes in the
mine plan which reduced the amount of waste material removed when compared to
Q2 2013.

Total tonnes mined during the quarter amounted to 10.4 million tonnes, a
decrease of 32% on Q2 2013. Ore tonnes mined from open pits amounted to 1.9
million tonnes compared to 1.5 million in Q2 2013, driven by the increased
focus on mining ore at Buzwagi due to the change in the mine plan, partially
offset by a reduction of tonnes mined at North Mara due to mine sequencing.

Ore tonnes processed amounted to 1.9 million tonnes, a decrease of 7% on Q2
2013 primarily driven by reduced throughput at Buzwagi and at Bulyanhulu as
discussed above.

Head grade for the quarter of 3.2 grams per tonne (g/t) was 19% higher than in
Q2 2013 (2.7 g/t). This was due to a higher mined grade at Buzwagi as mining
focused on the main ore zone as per the revised mine plan, and an improvement
in grade at Bulyanhulu due to improved access to higher grade stopes.

Our cash costs for the quarter were 13% lower than in Q2 2013, and amounted to
US$749 per ounce sold. The decrease was primarily due to:

the impact of the increased production base (US$160/oz);

the impact of the Operational Review (US$77/oz) on direct mining costs through:

a reduction in the international workforce (29% down compared to the same
period in 2013);

lower G&A costs driven by lower freight costs and aviation charges at
Bulyanhulu and North Mara;

increased supplier discounts; and

lower consumables costs driven by lower reagents and grinding media costs at
North Mara and lower tyres and grinding media costs at Buzwagi.

This was partially offset by lower capitalised development costs at Buzwagi and
North Mara as a result of the revised mine plan driving a lower strip ratio
(US$122/oz).

All-in sustaining cost of US$1,105 per ounce sold for the quarter was 21% lower
than Q2 2013, predominantly due to lower cash costs as explained above,
combined with lower sustaining capital expenditure and capitalised development.

Capital expenditure for the quarter amounted to US$59.0 million compared to
US$103.3 million in Q2 2013. Capital expenditure mainly consisted of
capitalised development expenditure (US$35.8 million), including US$4.7 million
related to waste development from the Bulyanhulu Upper East project and US$4.8
million relating to the Bulyanhulu Deep West project, investment in the
Bulyanhulu CIL Expansion project (US$10.1 million), investments in tailings and
infrastructure (US$7.2 million) and component costs (US$3.8 million).

Mine Site Review

Bulyanhulu

Key statistics
                                             Three months     Six months ended 
                                             ended 30 June         30 June     


                                                                           
(Unaudited)                                    2014     2013      2014     2013 
                                                                           
Underground ore tonnes hoisted   Kt             217      246       428      418 
                                                                           
Ore milled                       Kt             205      243       425      414 
                                                                           
Head grade                       g/t            8.3      7.8       8.4      7.7 
                                                                           
Mill recovery                    %            91.5%    90.7%     91.6%    91.0% 
                                                                           
Ounces produced                  oz         50,241*   54,938  105,420*   92,974 
                                                                           
Ounces sold                      oz          52,044   54,386   101,165   87,802 
                                                                           
Cash cost per tonne milled       US$/t          233      210       206      219 
                                                                           
Cash cost per ounce sold         US$/oz         919      936       867    1,033 
                                                                           
AISC per ounce sold              US$/oz       1,348    1,375     1,249    1,581 
                                                                           
Copper production                Klbs         1,135    1,382     2,431    2,238 
                                                                           
Copper sold                      Klbs         1,153    1,167     2,347    2,035 
                                                                           
Breakdown of Capital Expenditure                                                
                                                                           
 - Sustaining capital            US$('000)    2,334    7,953     4,482   15,546 
                                                                           
 - Capitalised development       US$('000)   17,158   11,822    28,414   24,102 
                                                                           
 - Expansionary capital          US$('000)   10,972   29,678    25,831   52,421 
                                                                           
Capital expenditure                          30,464   49,453    58,727   92,069 
                                                                           
 - Non-cash reclamation asset                                                  
adjustments                      US$('000)    3,056  (6,843)     8,721  (9,208) 
                                                                           
Total capital expenditure        US$('000)   33,520   42,610    67,448   82,861 
* Includes 273 ounces of gold in circuit at the CIL Expansion Plant 
Operating performance 
Gold production of 50,241 ounces for the quarter was 9% lower than in Q2 2013,
in spite of the 6% increase in grade driven by an increase in the availability
of high grade stopes. Tonnes hoisted and throughput were both impacted by the
disruption of mining operations for approximately two weeks in May as a result
of the search for a missing underground employee who was subsequently found
deceased as a result of a non-operational incident. Gold ounces sold of 52,044
ounces were 4% below that in Q2 2013 primarily due to the lower production
base, but exceeded production for the quarter due to the sale of concentrate
ounces on hand at the end of Q1 2014.   
Copper production of 1.1 million pounds for the quarter was 18% lower than in
Q2 2013 due to lower throughput. 
Cash costs for the quarter of US$919 per ounce sold were 2% lower than the
prior year of US$936, although they increased over Q1 2014 as a result of the
lower production base and an increase in operating expenses to support the ramp
up of production in the second half of the year. Against the prior year period,
cash costs were positively impacted by lower general and administration costs
primarily driven by lower freight costs, aviation charges, corporate charges
and consumable costs. 
AISC per ounce sold for the quarter of US$1,348 was 2% lower than in Q2 2013
(US$1,375), but higher than Q1 2014 as a result of lower production, higher
cash costs and higher capitalised development costs as explained below. 
During the quarter, we progressed the commissioning of the new CIL circuit at
Bulyanhulu and are nearing the completion of the commissioning stage. In late
June, roughly 6,500 tonnes of rougher tails were treated and pumped into the
new CIL circuit, resulting in 273 ounces of gold being produced in circuit. We
expect commissioning of this project to be complete early in Q3 with the first
gold pour in August. The ramp up of production will continue throughout the
third quarter. We continue to expect production of 20,000 ounces in 2014 from
the project, and are investigating an option for accelerating the retreatment
of the historic higher grade tailings in preference to the rougher tailings. 
We undertook waste development in the Upper East Zone for a capital cost of
US$4.7 million in Q2 2014 and will commence ore development as expected in Q3
2014. As a result, we expect production from the Upper East Zone of
approximately 15,000 ounces of gold in H2 2014, weighted towards the fourth
quarter. In addition, we have progressed the development of the Deep West Zone
through a contractor to accelerate access to higher grade ore from Q4 2014, and
have incurred underground development capital costs of US$4.8 million during
the quarter. ABG expects that the combined capital requirements the Upper East
Zone and Deep West Zone for 2014 will be approximately US$30 million. This is
categorised as capitalised development and is included in the Bulyanhulu and
Group AISC figures. 
Capital expenditure for the quarter of US$30.5 million was 38% lower than in Q2
2013 of US$49.5 million. Capital expenditure consisted mainly of capitalised
underground development costs (US$17.2 million, inclusive of US$4.7 million of
Upper East and US$4.8 million of Deep West spend) and expansionary capital
investment relating to the CIL circuit (US$10.1 million). 
Buzwagi 
Key statistics 


                                             Three months     Six months ended 
                                             ended 30 June         30 June     


                                                                           
(Unaudited)                                   2014      2013     2014      2013 
                                                                           
Tonnes mined                     Kt          5,803     8,475   11,346    17,305 
                                                                           
Ore tonnes mined                 Kt          1,333       800    2,354     1,501 
                                                                           
Ore milled                       Kt          1,010     1,197    1,980     2,290 
                                                                           
Head grade                       g/t           1.9       1.4      1.8       1.3 
                                                                           
Mill recovery                    %           91.9%     87.3%    90.3%     88.2% 
                                                                           
Ounces produced                  oz         57,787    45,726  102,344    85,746 
                                                                           
Ounces sold                      oz         49,479    44,556   92,442    96,367 
                                                                           
Cash cost per tonne milled       US$/t          41        39       41        39 
                                                                           
Cash cost per ounce sold         US$/oz        837     1,054      879       918 
                                                                           
AISC per ounce sold              US$/oz      1,078     1,632    1,169     1,643 
                                                                           
Copper production                Klbs        2,318     1,740    3,999     3,346 
                                                                           
Copper sold                      Klbs        1,721     1,589    3,044     4,078 
                                                                           
Breakdown of Capital Expenditure                                                
                                                                           
 - Sustaining capital            US$('000)   3,915     4,512    5,776    20,657 
                                                                           
 - Capitalised development       US$('000)   5,525    17,426   15,157    41,338 
                                                                           
Capital expenditure                          9,440    21,938   20,933    61,995 
                                                                           
 - Non-cash reclamation asset                                                  
adjustments                      US$('000)     174   (5,770)      839   (6,809) 
                                                                           
Total capital expenditure        US$('000)   9,614    16,168   21,772    55,186 
Operating performance 
Gold production for the quarter of 57,787 ounces was 26% higher than in Q2
2013, driven by increased head grade as a result of the re-engineered mine plan
as communicated in 2013. Gold sold for the quarter amounted to 49,479 ounces,
11% above that of Q2 2013 due to the increased production base, but lagging
production as a result of the availability and timing of copper concentrate
shipments. We anticipate that the majority of the unsold ounces at the end of
June will be shipped during Q3 2014 with the remainder sold in Q4 2014. 
Tonnes milled during the quarter were 16% lower than in Q2 2013 due to lower
mill availability as a result of the re-lining of both the SAG and Ball mills
in May, coupled with the limiting of daily throughput to manage a defective SAG
mill gearbox ahead of a change out in early Q3. The management of the SAG mill
gearbox meant that the process plant ran on 100% diesel power to ensure
consistent power supply from May, although this has now reverted back to the
normal power mix. 
Total tonnes mined for the quarter of 5.8 million tonnes were 32% lower than in
Q2 2013 due to changes in the mine plan compared to 2013 due to the focus on
the removal of less waste and mining of higher grade areas. 
Copper production of 2.3 million pounds for the quarter was 33% higher than in
Q2 2013 driven by the increased copper grades and concentrate production. 
Cash costs for the quarter of US$837 per ounce sold were 21% lower than in Q2
2013 (US$1,054). Cash costs were positively impacted by increased production
levels and resultant co-product revenue, together with savings driven by the
Operational Review in contracted services (lower rates) and labour costs (58%
reduction in the international workforce). This was partially offset by lower
capitalised development costs, increased power costs to run the process plant
on self generated power, and increased maintenance costs due to increased
maintenance activity. 
AISC per ounce sold for the quarter of US$1,078 was 34% lower than in Q2 2013
(US$1,632). This was driven by the lower cash cost base and lower sustaining
capital and capitalised development expenditure. 
Capital expenditure for the quarter of US$9.4 million was 57% lower than in Q2
2013 (US$21.9 million). The significant change to the mine plan reduced the
levels of waste movement thereby reducing capitalised stripping costs. Key
capital expenditure for the quarter included capitalised stripping costs
(US$5.5 million), investments in tailings and infrastructure (US$2.1 million)
and component change out costs (US$1.2 million). 
North Mara 
Key statistics 


                                             Three months     Six months ended 
                                             ended 30 June         30 June     


                                                                           
(Unaudited)                                   2014      2013     2014      2013 
                                                                           
Tonnes mined                     Kt          4,335     6,420    8,118    11,395 
                                                                           
Ore tonnes mined                 Kt            566       681    1,126     1,458 
                                                                           
Ore milled                       Kt            710       634    1,365     1,280 
                                                                           
Head grade                       g/t           3.5       3.6      3.6       3.6 
                                                                           
Mill recovery                    %           86.9%     87.0%    87.3%     87.1% 
                                                                           
Ounces produced                  oz         70,177    63,774  138,816   128,478 
                                                                           
Ounces sold                      oz         70,040    71,150  137,340   130,200 
                                                                           
Cash cost per tonne milled       US$/t          55        77       59        75 
                                                                           
Cash cost per ounce sold         US$/oz        561       684      584       739 
                                                                           
AISC per ounce sold              US$/oz        893     1,266      936     1,313 
                                                                           
Breakdown of Capital Expenditure                                                
                                                                           
 - Sustaining capital            US$('000)   4,557     9,183    8,088    23,962 
                                                                           
 - Capitalised development       US$('000)  13,125    22,271   25,392    28,917 
                                                                           
 - Expansionary capital          US$('000)     978       376      978       504 
                                                                           
Capital expenditure                         18,660    31,830   34,458    53,383 
                                                                           
 - Non-cash reclamation asset                                                  
adjustments                      US$('000)   1,382   (4,442)    5,358   (5,950) 
                                                                           
Total capital expenditure        US$('000)  20,042    27,388   39,816    47,433 
                                                                            
Operating performance 
Production for the quarter of 70,177 ounces was 10% higher than in Q2 2013
despite the marginally lower head grade as throughput rates exceeded the prior
year period by 12%. The higher milled tonnes were due to improved mill
efficiency. Gold ounces sold for the quarter of 70,040 ounces were in line with
production. 
Cash costs for the quarter of US$561 per ounce sold were 18% lower than in Q2
2013 (US$684). Cash costs were positively impacted by increased production
levels, together with a 36% reduction in the international workforce and lower
maintenance costs, both a result of initiatives driven by the Operational
Review. This was partially offset by lower capitalised mining costs and higher
contracted services costs given increased drilling rates and activity. 
AISC per ounce sold for the quarter of US$893 was 29% lower than in Q2 2013
(US$1,266) due to the reasons outlined above, combined with lower sustaining
capital and capitalised development expenditure in combination with the
increased production base. 
During the second half of the year, North Mara is expected to mill an increased
number of ore tonnes sourced from the lower grade Nyabirama pit rather than
from the Gokona pit. As a result head grades for the full year are expected to
revert towards the reserve grade of the mine. 
The feasibility study into the potential to mine Gokona Cut 3 via an
underground operation continued to progress well during the quarter and is on
track to be presented to the Board for approval in Q4 2014. During Q2, ABG made
the final decision on the location of the exploration portal which will provide
the opportunity to develop a better understanding of the ore body, initial
access to ore and drilling access to the deeper extensions of the ore body.
Early works towards the construction of the portal are in progress with the
first blast due in August.  The total expansionary capital cost of the portal
is expected to be around US$10 million. 
Capital expenditure for the quarter of US$18.7 million was 41% lower than in Q2
2013 (US$31.8 million), due to lower capitalised development and lower
sustaining capital expenditure, slightly offset by increased expansionary
expenditure. Key capital expenditure included capitalised stripping costs
(US$13.1 million), investments in tailings and infrastructure (US$1.8 million)
and component costs (US$2.1 million). Expansion capital of US$1.0 million
relates to exploration drilling costs relating to the Gokona Underground
feasibility study. 
Exploration Review 
Exploration during H1 2014 continued to focus on the Tanzanian near-mine and
in-mine brownfield programmes and the West Kenya Joint Venture Greenfield
programmes. Exploration expenditure for the first half of the year was
approximately US$10.6 million and the full year forecast budget remains US$16.0
million. The 2014 exploration programmes have been weighted toward H1 2014,
with large diamond core programmes from surface and underground platforms at
Bulyanhulu, and extensive soil sampling, ground geophysics and Aircore drilling
programmes across the West Kenya Joint Venture.  
In H2 2014, we expect to complete surface drilling on Bulyanhulu Deep West and
Aircore drilling in Kenya. We will assess the results of H1 2014 programmes and
design follow-up programmes to test positive results.  The next phase of
underground drilling at Bulyanhulu, which is targeting the deep western
extension of Reef 2, commenced in early July. 
Bulyanhulu Deep West Surface Drilling 
Throughout H1 2014, we have continued a programme of deep diamond drilling West
of the Bulyanhulu mine, targeting extensions of the Reef 1 and Reef 2 vein
series. The holes are designed to test the extensions of the Reef 1 structure
from 400 metres to 1,200 metres west of the current Bulyanhulu resource where
historic drilling had shown indications of further gold mineralisation.
Additionally, holes will also intersect the Reef 2 vein series, and provide an
indication of whether the Reef 2 system is mineralised up to 2 kilometres west
of currently delineated underground resources. 
During H1 2014, a total of 7,503 metres of diamond core has been drilled from
the surface holes. The Reef 1 and Reef 2 system has been intersected in several
holes during H1 2014, with better results being returned from Reef 2 in this
part of the Bulyanhulu mineralised system. Encouraging results from the
programme to date include the following significant intersections: 
BGMDD0054: 2.0m @10.7g/t Au from 1,174m - Reef 2 series 
BGMDD0054: 0.5m @ 37.9g/t Au from 1,335m - Reef 2 series 
BGMDD0054: 0.5m @ 29.6g/t Au from 1,390m - Reef 2 series 
BGMDD0054W1: 1.29m @ 11.7g/t Au from 1,435m - Reef 1 
BGMDD0054W2: 1.02m @ 24.2g/t Au from 1,034m - Reef 2 series 
BGMDD0054W2: 4.50m @ 8.05g/t Au from 1,640m, includes 1.0m @ 23.8g/t Au - Reef 
1 
BGMDD0054W3: 1.1m @ 5.35g/t Au from 1,363m - Reef 2 series 
BGMDD0054W3: 1.20m @ 11.5g/t Au from 1,367m - Reef 2 series 
BGMDD0055W1: 0.6m @ 18.8g/t Au from 613m - Reef 2 series 
BGMDD0055W2: 0.80m @ 16.2g/t Au from 944m - Reef 2 series 
BGMDD0055W3: 0.79m @ 7.00g/t Au from 1,059m - Reef 1 
BGMDD0056W1: 0.50m @ 94.6g/t Au from 805m - Reef 2 series 
The results from these holes are potentially significant in demonstrating that
gold mineralisation, particularly on the Reef 2 vein system continues West of
the mine, which would open the potential for an expansion of the footprint of
Bulyanhulu on Reef 2. The drilling programme is expected to be completed during
H2 2014 with a single rig drilling a further 2,500 metres of diamond core
drilling. This programme will form an important part of our assessment of how
to most effectively develop the Bulyanhulu mine over the long term. 
Bulyanhulu East Deeps Underground Drilling - Reef 2 
The East Deeps drilling programme targeted down dip mineralisation of the
Bulyanhulu Reef 2 system which is outside the current resource model. The
programme was drilled from several underground drill platforms and was aimed at
adding high grade gold resources on the East Zone. Drilling was completed
during H1 2014 with a total of 3,058 metres of diamond core completed from
three holes, bringing the total for the programme to five holes at 5,598
metres.  The results received were all from the Reef 2 series and included the
following encouraging intersections: 
UX4700-405: 1.0m @ 19.0g/t Au 
UX4700-407: 1.3m @ 76.7g/t Au 
UX4700-408: 1.75m @ 13.6g/t Au 
UX4700-410: 0.5m @ 18.4g/t Au 
These intersections continue to prove continuity at depth of the mineralisation
with high grade. This has the potential to add to the mine resource in this
area, with the high grade shoot remaining open at depth. This stage of the
programme has been completed and the results will be incorporated into the end
of year resource calculations. Further drilling programmes are planned in this
area and will be completed as part of a larger Reef 2 underground resource
expansion programme being undertaken by the mine over the next few years. 
West Kenya Joint Venture Projects 
Aircore drilling testing existing gold-in-soil anomalies along the Liranda
Corridor on the south side of the Kakamega Dome continued throughout H1 2014,
with a total of 830 holes completed for 32,215 metres. The Aircore programme
has been very successful, with 247 holes of the 992 holes completed since the
programme commenced in 2013 returning anomalous results (>0.1g/t Au), of which
87 holes intersecting zones of >0.50g/t Au including better results during H1
2014 of: 
KDAC0312: 3m @ 15.2 g/t Au from 41m and 9m @ 1.71 g/t Au from 62m 
KDAC0361: 39.5m @ 0.81 g/t Au from 9m, including 6m @ 2.26 g/t Au 
KDAC0376: 9m @ 2.57 g/t Au from 57m 
KDAC0617: 6m @ 7.7 g/t Au incl. 3m @ 13.7 g/t Au 
KDAC0832: 12m @ 2.77 g/t Au incl. 3m @ 9.11 g/t Au 
KDAC0841: 15m @ 1.94 g/t Au and 6m @ 4.35 g/t Au 
KDAC0858: 6m @ 22.3 g/t Au incl. 3m @ 44 g/t Au 
KDAC0860: 27m @ 1.31 g/t Au  incl. 15m @ 2.16g/t Au  
KDAC0877: 12m @ 12.6g/t Au incl. 3m @ 46.3 g/t Au 
The gold mineralisation has been intersected in a variety of rock types along
the Liranda Corridor, which indicates opportunities to test for different types
and styles of gold deposits in this area.  The majority of gold mineralisation
intersected to date has been within weathered (oxidised) bedrock, often
associated with quartz veining, but not always the case. 
The Aircore results to date are very encouraging given the current line spacing
of the Aircore traverses varies between 200 metres and 800 metres and the
average depth of drilling to date is relatively shallow at approximately 50
metres. Step-out and infill traverses are being undertaken as part of the
current phase of the programme before targets will be ranked for testing by
more advanced reverse circulation and diamond drilling. 
In tandem with the Aircore drilling we are undertaking gradient and pole-dipole
IP and Resistivity across selected gold-in-soil anomalies throughout the Lake
Zone Camp in the central and western areas of the project. A total of 147 line
kilometres of surveys have now been completed. Ten targets showing distinct
resistivity and/or chargeability zones coincident with the gold-in-soil
anomalies have been delineated and will be considered as priority targets for
future drilling programmes. 
Financial Review 
The positive impact of the Operational Review and the challenging gold price
environment in 2014 is reflected in the ABG Group's financial results for the
six months ended 30 June 2014 which also present Tulawaka as a discontinued
operation: 
Revenue of US$445.5 million was US$41.9 million lower than H1 2013 driven by a
13% decrease in the average realised gold price to US$1,290 per ounce sold
(US$1,480 per ounce sold in the prior year period), which more than offset an
increase of 16,578 ounces (5%) in sales volumes. 
Cash costs decreased to US$752 per ounce sold from US$876 in H1 2013, driven by
higher production, lower labour costs and contracted services. 
All-in sustaining costs decreased to US$1,118 per ounce sold from US$1,483 in
H1 2013 due to lower cash costs, sustaining capital expenditures and
capitalised development costs. 
EBITDA increased by 1% to US$131.6 million, mainly driven by lower direct
mining costs achieved from the implementation of the Operational Review
initiatives. 
Operational cash flow of US$127.1 million was 28% higher than H1 2013, mainly
due to reduced operating costs and decreased working capital investment. 
The following review provides a detailed analysis of our consolidated results
for the six months ended 30 June 2014 and the main factors affecting financial
performance. It should be read in conjunction with the consolidated interim
financial information and accompanying notes on pages 27 to 44, which have been
prepared in accordance with International Financial Reporting Standards as
adopted for use in the European Union (IFRS). 
Discontinued operation - Tulawaka 
On 15 November 2013, ABG announced that an agreement was reached with STAMICO,
the Tanzanian State Mining Corporation, whereby STAMICO acquired 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$0.5 million. As
part of the agreement, STAMICO took 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 indemnified 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 was 100% owned by the
Tulawaka Joint Venture, in which ABG held a 70% economic interest through a
wholly owned subsidiary, and MDN Inc held 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 interim financial information. The comparative
results in the consolidated interim 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 "Net profit/(loss)
from discontinued operations". Below is a reconciliation showing Group
financial performance on a line by line basis. 
                                       Six months ended 30 June 2014      
Six months ended 30 June 2013   
                                                                             
                         
(US$'000)                                                                        
                          
                                     Continuing Discontinued            
Continuing Discontinued          
(Unaudited)                              operations   operations     Total  
operations   operations     Total 
                                                                             
                         
Revenue                                     445,509            -   445,509     
487,360       12,392   499,752 
                                                                             
                         
Cost of sales                             (332,474)            - (332,474)   
(386,733)     (28,151) (414,884) 
                                                                             
                         
Gross profit                                113,035            -   113,035     
100,627     (15,759)    84,868 
                                                                             
                         
Corporate administration                   (13,975)            -  (13,975)    
(17,583)      (1,301)  (18,884) 
                                                                             
                         
Share based payments                        (4,917)            -   (4,917)      
 3,861          114     3,975 
                                                                             
                         
Exploration and evaluation costs           (10,995)            -  (10,995)     
(7,715)          161   (7,554) 
                                                                             
                         
Corporate social responsibility expenses    (4,307)         (92)   (4,399)     
(6,228)        (690)   (6,918) 
                                                                             
                         
Impairment charges                                -            -         -   
(910,989)     (16,701) (927,690) 
                                                                             
                         
Other charges                              (12,782)          958  (11,824)    
(15,597)      (6,496)  (22,093) 
                                                                             
                         
Profit/(loss) before net finance expense                                         
                         
and taxation                                 66,059          866    66,925   
(853,624)     (40,672) (894,296) 
                                                                             
                         
Finance income                                  630           36       666       
995           10     1,005 
                                                                             
                         
Finance expense                             (4,504)         (16)   (4,520)     
(4,696)         (79)   (4,775) 
                                                                             
                         
Profit/(loss) before taxation                62,185          886    63,071   
(857,325)     (40,741) (898,066) 
                                                                             
                         
Tax (expense)/credit                       (22,716)            -  (22,716)     
184,648            -   184,648 
                                                                             
                         
Net profit/(loss) for the period             39,469          886    40,355   
(672,677)     (40,741) (713,418) 
                                                                             
                          
The financial performance below is stated for continuing operations. 
Revenue 
Revenue for H1 2014 of US$445.5 million was 9% lower than in H1 2013 (US$487.4
million). Year-on-year realised gold prices decreased by 13% to US$1,290 per
ounce sold from US$1,480 in H1 2013, which more than offset the increase in
sales volumes of 16,578 ounces. The increase in sales ounces was primarily due
to the higher production base. 
Included in total revenue was co-product revenue of US$18.7 million for H1
2014, which decreased by 17% from the prior year period (US$22.7 million) due
to the lower copper sales volumes and a lower realised copper price. The H1
2014 average realised copper price of US$3.07 per pound compared unfavourably
to that of H1 2013 (US$3.23 per pound), and was driven by global market factors
regarding supply and demand. 
Cost of sales 
Cost of sales was US$332.5 million for H1 2014, representing a decrease of 14%
on the prior year period (US$386.7 million). The key aspects impacting the cost
of sales for the reporting period were lower direct mining costs as a result of
Operational Review savings across labour, consumables and freight, a change in
inventory credit driven by the investment in ore inventory and build up of
ounces on hand and lower depreciation and amortisation charges driven by the
lower capital base employed. 
The table below provides a breakdown of cost of sales: 
                                   Three months ended   Six months ended 30
(US$'000)                                    30 June               June         
                                                                           
(Unaudited)                                 2014      2013       2014      2013 
                                                                           
Cost of Sales                                                                   
                                                                           
Direct mining costs                      122,841   141,623    238,087   268,238 
                                                                           
Third party smelting and refining fees     5,783     3,611      9,916     7,997 
                                                                           
Royalty expense                           10,011    10,845     19,775    21,831 
                                                                           
Depreciation and amortisation             34,698    47,269     64,696    88,667 
                                                                           
Total                                    173,333   203,348    332,474   386,733 
                                                                            
A detailed breakdown of direct mining expenses is shown in the table below: 
                           Three months ended 30      Six months ended 30  
(US$'000)                              June                      June           
                                                                           
(Unaudited)                          2014         2013         2014        2013 
                                                                           
Direct mining costs                                                             
                                                                           
Labour                             32,976       39,040       67,973      80,440 
                                                                           
Energy and fuel                    33,926       35,932       66,345      70,228 
                                                                           
Consumables                        24,850       28,148       48,723      54,796 
                                                                           
Maintenance                        24,907       23,142       47,923      47,741 
                                                                           
Contracted services                23,549       23,583       42,300      50,030 
                                                                           
General administration costs       19,522       24,103       39,591      45,808 
                                                                           
Capitalised mining costs         (36,889)     (32,325)     (74,768)    (80,805) 
                                                                           
Total direct mining costs         122,841      141,623      238,087     268,238 
                                                                            
Direct mining costs of US$238.1 million for H1 2014 were 11% lower than H1 2013
(US$268.2 million). Individual cost components comprised: 
A 15% reduction in labour costs, mainly as a result of the lower headcount at
all operating sites, specifically a 29% reduction in group international
employees, driven by localisation efforts and the impact of the Operational
Review. 
A 6% reduction in energy and fuel expenses, driven primarily by lower diesel
usage at North Mara as a result of reduced mining activity, and at Buzwagi as a
result of reduced mining and processing activity. 
An 11% decrease in consumable costs, primarily due to supplier price
negotiations, increased mine site efficiencies and lower mining activity. 
Maintenance costs of US$47.9 million were in line with prior year costs of
US$47.7 million. 
A 15% decrease in contracted services, mainly driven by lower mining activity
at Buzwagi, and the renegotiated maintenance rates associated with maintenance
and repair contracts ("MARC") contracts at Buzwagi and North Mara. 
A 14% decrease in general administration costs, mainly at Bulyanhulu and North
Mara driven by lower freight costs associated with inventory consumed, a
decrease in the stock obsolescence provision and lower aviation charter costs
driven by the Operational Review. 
Capitalised direct mining costs, consisting of capitalised development costs
and the change in inventory charge, is comprised as follows: 
                                    Three months ended 30                    
             
(US$'000)                                        June                Six months 
ended 30 June     
                                                                             
             
(Unaudited)                                2014            2013      2014        


             2013
                                                                                


             
Capitalised direct mining costs                                                  


                 
                                                                                


             
Capitalised development costs          (30,649)        (52,298)  (64,095)        


         (95,775)
                                                                                


             
(Investment in)/ drawdown of inventory  (6,240)          19,973  (10,673)        


           14,970
                                                                                


             
Total capitalised direct mining costs  (36,889)        (32,325)  (74,768)        


         (80,805)
                                                                                
                 

Capitalised development costs were 33% lower than H1 2013, driven by increased
focus on mining ore at Buzwagi due to the revised mine plan. The investment in
inventory was US$25.6 million higher than in H1 2013 due to a build up of ore
inventory at Buzwagi due to lower throughput rates combined with increased gold
inventory on hand driven by the timing of production compared to sales. This
was slightly offset by a drawdown of ore stockpiles at North Mara as a result
of the improved throughput rate and plant performance.

Corporate administration costs

Corporate administration expenses totalled US$18.9 million for H1 2014. A
US$3.6 million decrease in general corporate administration costs due to the
impact of the Operational Review was more than offset by an increase of US$8.8
million in share based payment expenses given the stronger share price
performance. This resulted in a 38% increase on H1 2013 (US$13.7 million) as
shown in the table below.
                                 Three months ended 30     Six months ended 30  
                                         June                      June         
                                                                                

(US$'000)                              2014         2013        2014        
2013
                                                                                

(Unaudited)                                                                     
                                                                                

Corporate administration              7,618        9,169      13,975      
17,583
                                                                                

Share based payments                  1,593        (425)       4,917     
(3,861)
                                                                                

Total corporate administration        9,211        8,744      18,892      
13,722
                                                                                


Exploration and evaluation costs

Exploration and evaluation costs of US$11.0 million were incurred in H1 2014,
43% higher than the US$7.7 million spent in H1 2013. The key focus areas for H1
2014 were drilling at Bulyanhulu deep central reefs 1 and 2 (US$5.5 million),
and exploration programmes at the West Kenya Joint Venture project amounting to
US$3.3 million. The Bulyanhulu underground programme has been completed in H1
2014 and the second half of the year should see decreased field activity across
all projects.

Corporate social responsibility expenses

Corporate social responsibility costs incurred amounted to US$4.3 million for
the six months compared to the prior year of US$6.2 million. The main projects
for H1 2014 related to Village Benefit Implementation Agreements ("VBIAs") at
North Mara and contributions to general community projects funded from the ABG
Maendeleo Fund.

Other charges

Other charges amounted to US$12.8 million, 18% lower than H1 2013 (US$15.6
million). The main contributors were: (i) non-cash foreign exchange losses
mainly related to the indirect tax receivables due to the weakening of the
Tanzanian shilling (US$7.8 million), (ii) Operational Review costs, including
external services and retrenchment costs of US$5.3 million, (iii) legal costs
of US$1.9 million, and (iv) 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. The entry into these arrangements resulted in a combined
mark-to-market revaluation gain of US$2.7 million, due to the fact that these
arrangements do not qualify for hedge accounting. Refer to note 7 of the
consolidated interim financial information for further details.

Finance expense and income

Finance expense of US$4.5 million for H1 2014 was 4% lower than H1 2013 (US$4.7
million). The key drivers were US$1.2 million (US$1.5 million in 2013) 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$2.5 million). Other costs include bank charges and interest on
finance leases. Interest costs relating to the project financing on the CIL
Bulyanhulu Expansion project are capitalised to the cost of the asset due to
the facility being directly attributable to the asset. For the six months ended
30 June 2014 US$2.0 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 8 of the
consolidated interim financial information for details.

Taxation matters

The taxation charge was US$22.7 million for H1 2014, compared to a credit of
US$184.6 million in H1 2013. The tax charge was made up solely of deferred tax
charges and reflects the impact of the profitability on a year-to-date basis.
The effective tax rate in H1 2014 amounted to 36.5% compared to 21.5% in H1
2013. The increase is mainly driven by the increase in taxable income, and
temporary higher tax losses for corporate and exploration entities in Q2 2014
for which deferred tax assets are not recognised. This is expected to normalise
in H2 2014.

Net earnings from continuing operations

As a result of the factors discussed above, net profit from continuing
operations for H1 2014 was US$39.5 million, against the prior year period loss
of US$672.7 million. Lower impairment charges, costs of sales, and other
charges contributed to the variance. This was offset by the higher tax charge
and lower revenue.

Earnings per share

The earnings per share for H1 2014 amounted to US10.0 cents, an increase of
US181.0 cents from the prior year period loss of US171.0 cents. The increase
was driven by an increased net profit with no change in the underlying issued
shares. Earnings per share from continuing operations amounted to US9.6 cents.

Key financial performance indicators and reconciliations

Cash costs

Cash cost per ounce sold in H1 2014 (US$752 per ounce sold) decreased by 14%
when compared to H1 2013 (US$876 per ounce). Refer to the operating overview on
page 7 and cost of sales explanations as part of the financial review for the
details on 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 ended   Six months ended 30
(US$'000)                                   30 June                June         
                                                                           
(Unaudited)                                2014       2013       2014      2013 
                                                                           
Total cost of sales                     173,333    203,348    332,474   386,733 
                                                                           
Deduct: depreciation and amortisation  (34,698)   (47,269)   (64,696)  (88,667) 
                                                                           
Deduct: Co-product revenue             (10,098)    (9,544)   (18,744)  (22,670) 
                                                                           
Total cash cost                         128,537    146,535    249,034   275,396 
                                                                           
Total ounces sold                       171,563    170,092    330,947   314,369 
                                                                           
Cash cost per ounce                         749        862        752       876 
                                                                           
Discontinued operations                       -         17          -        27 
                                                                           
Attributable cash cost per ounce            749        879        752       903 
                                                                            
Refer to note 6 to the consolidated interim financial information for a
reconciliation to all-in sustaining cost per ounce sold. 
EBITDA 
EBITDA for H1 2014 increased by 1% to US$131.6 million when compared to H1 2013
(US$130.8 million) as a result of the lower cost of sales and other charges,
partly offset by lower revenue and higher corporate administration costs. A
reconciliation between net profit for the period and EBITDA is presented below: 
                                  Three months ended 30   Six months ended 30 
(US$'000)                                  June                    June         
                                                                           
(Unaudited)                            2014         2013      2014         2013 
                                                                           
Net profit/ (loss) for the period    18,412    (729,628)    40,355    (713,418) 
                                                                           
Plus income tax expense              12,047    (198,907)    22,716    (184,648) 
                                                                           
Plus depreciation and amortisation   34,698       47,865    64,696       97,377 
                                                                           
Plus impairment charges/write-offs        -      927,690         -      927,690 
                                                                           
Plus finance expense                  2,106        2,218     4,520        4,775 
                                                                           
Less finance income                   (304)        (410)     (666)      (1,005) 
                                                                           
EBITDA                               66,959       48,828   131,621      130,771 


                                                                               


Financial position

ABG had cash and cash equivalents on hand of US$269.6 million as at 30 June
2014 (US$320.9 million as at 30 June 2013). 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.

During 2013, a US$142 million facility was put in place to fund the bulk of the
costs of the construction of one of our key growth projects, the Bulyanhulu CIL
Expansion project ("Project"). The Facility is collateralised by the Project,
and has a term of seven years with a spread over Libor of 250 basis points. The
seven year 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 3.6% through the use of an interest rate swap. The full facility of
US$142 million was drawn in 2013.

The above compliments the existing undrawn revolving credit facility of US$150
million which runs until November 2016.

The net book value of property, plant and equipment increased from US$1.28
billion in December 2013 to US$1.35 billion in June 2014. 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$64.7 million. Refer to notes 6 and 12 to the consolidated interim financial
information for further details.

Total indirect tax receivables, net of a discount provision applied to the
non-current portion, decreased from US$159.8 million as at 31 December 2013 to
US$126.6 million as at 30 June 2014. The decrease was mainly due to refunds of
US$65.8 million received during H1 2014, which was offset by a net increase in
current VAT receivables of approximately US$37 million. The net deferred tax
position decreased from an asset of US$14.9 million as at 31 December 2013 to a
liability of US$7.8 million. This was mainly driven by the reduction in
deferred tax assets as a result of the company making taxable income.

Net assets attributable to owners of the parent increased from US$1.93 billion
in December 2013 to US$1.96 billion in June 2014. The increase reflects the
current year profit attributable to owners of the parent of US$40.8 million and
the payment of the final 2013 dividend of US$8.2 million to shareholders during
H1 2014.


Cash flow generation and capital management

Cash flow - continuing and discontinued operations
                                                  For the three                 
        


                                             months ended 30       For six 
months   
(US$'000)                                              June             ended 
30 June    
                                                                             
    
(Unaudited)                                         2014      2013        2014   


    2013
                                                                                


    
Cash generated from operating activities          76,381    41,691     127,107  
  99,017 
                                                                             
    
Cash used in investing activities               (50,541) (102,943)   (128,074) 
(208,822) 
                                                                             
    
Cash (used in)/provided by financing activities (10,249)  (20,263)    (11,085)  
  27,588 
                                                                             
    
Increase/(decrease) in cash                       15,591  (81,515)    (12,052)  
(82,217) 
                                                                             
    
Foreign exchange difference on cash                 (89)       868       (761)   
1,742 
                                                                             
    
Opening cash balance                             254,094   401,520     282,409  
 401,348 
                                                                             
    
Closing cash balance                             269,596   320,873     269,596  
 320,873 
                                                                             
     
Cash flow from operating activities was US$127.1 million for H1 2014, an
increase of US$28.1 million, when compared to H1 2013 (US$99.0 million). The
increase primarily relates increased EBITDA, slightly offset by an investment
in working capital. The working capital investment of US$3.8 million related
mainly to a decrease in trade payables of US$16.4 million due to the timing of
payments combined with an investment in gold inventory of US$14.6 million. This
was offset by VAT refunds of US$28.2 million received from the Tanzanian
Government. 
Cash flow used in investing activities was US$128.1 million for H1 2014, a
decrease of 39% when compared to H1 2013 (US$208.8 million), driven by lower
sustaining capital expenditure across all sites, lower expansion capital
expenditure mainly related to the Bulyanhulu CIL Expansion project and lower
capitalised development expenditure at Buzwagi and North Mara. 
A breakdown of total capital and other investing capital activities for the six
months ended 30 June is provided below: 
(US$'000)                                         For six months ended 30 June 
                                                                          
(Unaudited)                                               2014            2013 
                                                                          
Sustaining capital                                      20,724          58,987 
                                                                          
Expansionary capital                                    26,809          53,866 
                                                                          
Capitalised development                                 68,963          94,357 
                                                                          
Total cash capital                                     116,496         207,210 
                                                                          
Non-cash rehabilitation asset adjustment                14,918        (22,128) 
                                                                          
Non-cash sustaining capital1                           (1,752)           1,846 
                                                                          
Total capital expenditure                              129,662         186,928 
                                                                          
Other investing capital                                                        
                                                                          
- Non-current asset movement2                             (55)           1,612 
                                                                          
-Cash flow related to the sale of Tulawaka              11,633               - 
                                                                           
1 Total non-cash sustaining capital relates to the impact of capital accruals
excluded from cash sustaining capital. 
2 Non-current asset movements relates to the investment in the land
acquisitions reflected as prepaid operating leases and Tanzania government
receivables. 


    Sustaining capital

Sustaining capital expenditure included the investment in mine equipment of
US$6.7 million, mainly relating to component change outs at North Mara and
Buzwagi and investment in tailings and infrastructure at North Mara (US$3.4
million), Bulyanhulu (US$3.2 million), and Buzwagi (US$3.0 million).

Expansionary capital

Expansionary capital expenditure consisted mainly of the Bulyanhulu CIL
Expansion project (US$24.9 million).

Capitalised development

Capitalised development capital includes capitalised stripping for North Mara
(US$25.4 million) and Buzwagi (US$15.2 million) and Bulyanhulu capitalised
underground development of US$28.4 million.

Non-cash capital

Non-cash capital was US$13.2 million and consisted of reclamation asset
adjustments (US$14.9 million) and the six months increase in capital accruals
(US$1.8 million). The reclamation adjustments were driven by lower US risk free
rates driving lower discount rates.

Other investing capital

The sale of Tulawaka to STAMICO resulted in a cash payment of the balance of
the rehabilitation fund, less the transaction consideration on completion, and
amounted to US$11.6 million. During H1 2014 North Mara incurred land purchases
totalling US$5.3 million.

Cash flow used in financing activities for the six months ended 30 June 2014
was US$11.1 million, a decrease of US$38.7 million on H1 2014 (US$27.6 million
inflow). The outflow primarily relates to payment of the final 2013 dividend of
US$8.2 million and finance lease payments of US$2.9 million.

Dividend

The final dividend for 2013 of US2.0 cents per share was paid to shareholders
during May 2014. The Board of Directors have approved an interim dividend for
2014 of US1.4 cents per share, payable to shareholders in September 2014.

Significant judgements in applying accounting policies and key sources of
estimation uncertainty

Many of the amounts included in the consolidated interim 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 interim
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 interim
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 30 June 2014, the Group had cash and cash equivalents of US$269.6 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$66.0 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 consolidated interim 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 cost 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 15 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. Cash cost
per ounce sold is calculated by dividing the aggregate of these costs by gold
ounces sold. Cash costs and cash cost 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 cost 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 30 June 2014      Three months 
ended 30 June 2013  
                                                                                
                    
                                                     ABG Group                  
          ABG Group 


                                   North          ongoing               
North          ongoing  
(US$/oz sold)               Bulyanhulu Mara  Buzwagi operations  Bulyanhulu 
Mara  Buzwagi operations 
                                                                             
                
Cash cost per ounce sold           919   561     837        749         936   
684   1,054        862 
                                                                             
                
Corporate administration            40    36      39         45          61    
35      57         54 
                                                                             
                
Share based payments                 2     -     (4)          9           -   
(1)       -        (3) 
                                                                             
                
Rehabilitation                       8    19       6         12           7    
31      24         21 
                                                                             
                
Mine exploration                     2     2       1          2           3    
16       2          8 
                                                                             
                
CSR expenses                         2    12       9         11           5    
26       3         18 
                                                                             
                
Capitalised development            330   187     112        209         217   
313     391        303 
                                                                             
                
Sustaining capital                  45    76      78         68         146   
162     101        141 
                                                                             
                
Total continuing operations      1,348   893   1,078      1,105       1,375 
1,266   1,632      1,404 
                                                                             
                
Discontinued operations                                       0                  


                  12
                                                                                


                
Total                                                     1,105                  


               1,416
                                                                                
                    


(Unaudited)                    Six months ended 30 June 2014        Six months 
ended 30 June 2013    


                                                                                
                    
                                                     ABG Group                  
          ABG Group 


                                   North          ongoing               
North          ongoing  
(US$/oz sold)               Bulyanhulu Mara  Buzwagi operations  Bulyanhulu 
Mara  Buzwagi operations 
                                                                             
                
Cash cost per ounce sold           867   584     879        752       1,033   
739     918        876 
                                                                             
                
Corporate administration            41    34      38         42          81    
40      55         56 
                                                                             
                
Share based payments                 2     1       4         15         (1)   
(1)     (1)       (12) 
                                                                             
                
Rehabilitation                       7    19       7         12           8    
34      21         23 
                                                                             
                
Mine exploration                     2     1       1          2           4    
16       3          8 
                                                                             
                
CSR expenses                         4    15      14         13           5    
29       4         20 
                                                                             
                
Capitalised development            281   185     164        208         274   
222     429        300 
                                                                             
                
Sustaining capital                  45    97      62         74         177   
234     214        212 
                                                                             
                
Total continuing operations      1,249   936   1,169      1,118       1,581 
1,313   1,643      1,483 
                                                                             
                
Discontinued operations                                       0                  


                  24
                                                                                


                
Total                                                     1,118                  


               1,507
                                                                                
                    

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.

Cash cost per tonne milled is a non-IFRS financial measure. Cash costs include
all costs absorbed into inventory, as well as royalties, by-product credits,
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. Cash costs per tonne milled are calculated by dividing the
aggregate of these costs by total tonnes milled.

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.

EBIT is a non-IFRS financial measure and reflects EBITDA adjusted for
depreciation and amortisation and goodwill impairment charges.

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.

Risk Review

We have made a number of further developments in the identification and
management of our risk profile over the course of H1 2014 and where
appropriate, risk ratings have been reviewed against risk management controls
and other mitigating factors. Our principal risks continue to fall within four
broad categories: strategic risks, financial risks, external risks and
operational risks  and, while the overall makeup of our principal risks has not
significantly changed from that published in the 2013 Annual Report, there have
been changes in certain risk profiles as a result of developments in our
operating environment, in particular enhancements made to operating and
planning practices, and continuing uncertainties and trends within the wider
global economy and/or the mining industry.  This has resulted in the following
risks being removed from those risks previously viewed as principal risks to
ABG and its operations: (i) costs and capital expenditure; (ii) utilities
supply; (iii) land acquisitions; and (iv) loss of critical processes. Further
details of these risks are provided in the 2013 Annual Report.  In conjunction
with this, we believe it appropriate to add a new risk as a principal risk for
the remainder of 2014, this being safety risks relating to mining operations.
This is due to the fact that, despite the significant health, safety and risk
management systems that ABG has in place for its underground and surface mining
operations, mining and in particular underground mining is subject to a number
of hazards and risks in the workplace, such as fall of ground relating to
underlying geotechnical risks, potential fires and mobile equipment incidents,
such that safety incidents in the workplace may unfortunately occur.

As a result of the review outlined above, for the remainder of 2014 we view our
principal risks as relating to the following:

Single country risk

Reserves and resources estimates

Commodity prices

Political, legal and regulatory developments

Taxation reviews

Community relations

Environmental hazards and rehabilitation

Employer, contractor and industrial relations

Security, trespass and vandalism

Organisational restructuring

Safety risks relating to mining operations

Further detail as regards the nature of the new safety risks relating to mining
operations is provided above. Further detail as regards all other principal
risks outlined above is provided as part of the 2013 Annual Report.

Directors' Responsibility Statement

The Directors confirm that, to the best of their knowledge, the consolidated
interim financial information has been prepared in accordance with IAS 34 as
adopted by the European Union. The interim management report includes a fair
review of the information required by Disclosure and Transparency Rule 4.2.7R
and Disclosure and Transparency Rule 4.2.8R, namely:

an indication of important events that have occurred during the first six
months of the financial year and their impact on the consolidated interim
financial information, and a description of the principal risks and
uncertainties for the remaining six months of the financial year; and

material related-party transactions in the first six months of the financial
year and any material changes in the related party transactions described in
the last Annual Report.

The Directors of African Barrick Gold plc are listed in the African Barrick
Gold plc Annual Report for 31 December 2013. A list of current Directors is
maintained on the African Barrick Gold plc website: www.africanbarrickgold.com.

On behalf of the Board

Brad Gordon, Chief Executive Officer Kelvin Dushnisky, Chairman
                                                               
    Auditor's Review Report

Independent review report to African Barrick Gold plc


Report on the condensed consolidated interim financial statements

Our conclusion

We have reviewed the consolidated interim financial information, defined below,
in the interim financial statements of African Barrick Gold Plc for the six
months ended 30 June 2014. Based on our review, nothing has come to our
attention that causes us to believe that the condensed consolidated interim
financial information are not prepared, in all material respects, in accordance
with International Accounting Standard 34 as adopted by the European Union and
the Disclosure and Transparency Rules of the United Kingdom's Financial Conduct
Authority.

This conclusion is to be read in the context of what we say in the remainder of
this report.

What we have reviewed

The condensed consolidated interim financial information, which are prepared by
African Barrick Gold plc, comprise:

the consolidated balance sheet as at 30 June 2014;

the consolidated income statement and statement of comprehensive income for the
period then ended;

the consolidated statement of cash flows for the period then ended;

the consolidated statement of changes in equity for the period then ended; and

the explanatory notes to the condensed consolidated interim financial
information.

As disclosed in note 2, the financial reporting framework that has been applied
in the preparation of the full annual financial statements of the group is
applicable law and International Financial Reporting Standards (IFRSs) as
adopted by the European Union.

The condensed consolidated interim financial information included in the
half-yearly financial report have been prepared in accordance with
International Accounting Standard 34, 'Interim Financial Reporting', as adopted
by the European Union and the Disclosure and Transparency Rules of the United
Kingdom's Financial Conduct Authority.

What a review of condensed consolidated financial information involves

We conducted our review in accordance with International Standard on Review
Engagements (UK and Ireland) 2410, 'Review of Interim Financial Information
Performed by the Independent Auditor of the Entity' issued by the Auditing
Practices Board for use in the United Kingdom. A review of interim financial
information consists of making enquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other review
procedures.

A review is substantially less in scope than an audit conducted in accordance
with International Standards on Auditing (UK and Ireland) and, consequently,
does not enable us to obtain assurance that we would become aware of all
significant matters that might be identified in an audit. Accordingly, we do
not express an audit opinion.

We have read the other information contained in the half-yearly financial
report and considered whether it contains any apparent misstatements or
material inconsistencies with the information in the condensed consolidated
interim financial information.

Responsibilities for the condensed consolidated interim financial information
and the review

Our responsibilities and those of the directors

The half-yearly financial report, including the condensed consolidated interim
financial information, is the responsibility of, and has been approved by, the
directors. The directors are responsible for preparing the half-yearly
financial report in accordance with the Disclosure and Transparency Rules of
the United Kingdom's Financial Conduct Authority.

Our responsibility is to express to the company a conclusion on the condensed
consolidated interim financial information in the half-yearly financial report
based on our review. This report, including the conclusion, has been prepared
for and only for the company for the purpose of complying with the Disclosure
and Transparency Rules of the Financial Conduct Authority and for no other
purpose. We do not, in giving this conclusion, accept or assume responsibility
for any other purpose or to any other person to whom this report is shown or
into whose hands it may come save where expressly agreed by our prior consent
in writing.

PricewaterhouseCoopers LLP
Chartered Accountants, London
24 July 2014

Notes:

The maintenance and integrity of the African Barrick Gold Plc website is the
responsibility of the directors; the work carried out by the auditors does not
involve consideration of these matters and, accordingly, the auditors accept no
responsibility for any changes that may have occurred to the financial
statements since they were initially presented on the website.

Legislation in the United Kingdom governing the preparation and dissemination
of financial statements may differ from legislation in other jurisdictions.
    INTERIM FINANCIAL STATEMENTS

Consolidated Income Statement
                                                                                
        For the  


                                                        For the six months 
ended  year ended  


                                                                     30 June    
      31 December
                                                                                
                 


                                                        (Unaudited)  
(Unaudited)   (Audited)  
                                                                             
             
(US$'000)                                             Notes        2014 2013 
Restated        2013 
                                                                             
             
CONTINUING OPERATIONS                                                            


                 
                                                                                


             
Revenue                                                         445,509       
487,360     929,004 
                                                                             
             
Cost of sales                                                 (332,474)     
(386,733)   (713,806) 
                                                                             
             
Gross profit                                                    113,035       
100,627     215,198 
                                                                             
             
Corporate administration                                       (18,892)      
(13,722)    (32,157) 
                                                                             
             
Exploration and evaluation costs                               (10,995)       
(7,715)    (16,927) 
                                                                             
             
Corporate social responsibility expenses                        (4,307)       
(6,228)    (12,237) 
                                                                             
             
Impairment charges                                                    -     
(910,989) (1,044,310) 
                                                                             
             
Other charges                                           7      (12,782)      
(15,597)    (30,424) 
                                                                             
             
Profit/(loss) before net finance expense and taxation            66,059     
(853,624)   (920,857) 
                                                                             
             
Finance income                                          8           630         
  995       1,670 
                                                                             
             
Finance expense                                         8       (4,504)       
(4,696)     (9,552) 
                                                                             
             
Profit/(loss) before taxation                                    62,185     
(857,325)   (928,739) 
                                                                             
             
Tax (expense)/credit                                    9      (22,716)       
184,648     187,959 
                                                                             
             
Net profit/(loss) from continuing operations                     39,469     
(672,677)   (740,780) 


                                                                                
                 
                                                                                
                 
                                                                                


             
DISCONTINUED OPERATIONS                                                          


                 
                                                                                


             
Net profit/(loss) from discontinued operations          5           886      
(40,741)    (57,653) 


                                                                                
                 
                                                                                
                 
                                                                                


             
Net profit/(loss) for the period                                 40,355     
(713,418)   (798,433) 


                                                                                
                 
                                                                                
                 
                                                                                


             
Net Profit/(Loss) attributable to:                                               


                 
                                                                                


             
 Owners of the parent (net earnings/(loss))                     40,822     
(701,230)   (781,101)  
                                                                             
             
- Continuing operations                                          39,469     
(672,677)   (740,780) 
                                                                             
             
- Discontinued operations                                         1,353      
(28,553)    (40,321) 
                                                                             
             
 Non-controlling interests                                                       


                 
                                                                                


             
- Discontinued operations                                         (467)      
(12,188)    (17,332) 


                                                                                
                 
                                                                                
                 
                                                                                


             
Earnings/ (loss) per share:                                       10.0       
(171.0)     (190.4)  
                                                                             
             
 - Basic and diluted earnings/(loss) per share                                   
             
(cents) from continuing operations                     10           9.6       
(164.0)     (180.6) 
                                                                             
             
 - Basic and diluted earnings/(loss) per share                                   
             
(cents) from discontinued operations                   10           0.4         
(7.0)       (9.8) 


                                                                                
                 
    The notes on pages 32-44 form an integral part of this financial information.
    Consolidated Statement of Comprehensive Income
                                                                                
          For the 
                                                                                
           year   


                                                               For the six 
months    ended 31  
                                                                  ended 30 
June      December  


                                                                                
                  


                                                             (Unaudited) 
(Unaudited) (Audited) 
                                                                             
              
(US$'000)                                                               2014     


    2013      2013
                                                                                


              
Net profit/(loss) for the period                                      40,355   
(713,418) (798,433) 
                                                                             
              
Other comprehensive income:                                                      


                  
                                                                                


              
Items that may be subsequently reclassified to profit or loss:                   


                  
                                                                                


              
Changes in fair value of cash flow hedges                            (1,037)     


     560     1,570
                                                                                


              
Total comprehensive income/ (loss) for the period                     39,318   
(712,858) (796,863) 
                                                                             
              
Attributed to:                                                                   


                  
                                                                                


              
 - Owners of the parent                                               39,785   
(700,670) (779,531) 
                                                                             
              
 - Non-controlling interests                                           (467)    
(12,188)  (17,332) 


                                                                                
                  
    The notes on pages 32-44 form an integral part of this financial information.
    Consolidated Balance Sheet
                                                                  As at         
           As at                   As at
                                                                30 June         
         30 June             31 December
                                                            (Unaudited)         


 (Unaudited)               (Audited)
(US$'000)                                             Notes        2014          


            2013                    2013
                                                                                
                                            ASSETS                              
                                                                                
                                                                                


                                                
Non-current assets         
                      
Goodwill and intangible assets                                  211,190          
     211,190                 211,190 
                            
Property, plant and equipment                          12     1,345,587          
   1,288,114               1,280,671 
                    
Deferred tax assets                                              45,046          
      49,510                  50,787 
                   
Non-current portion of inventory                                 81,561          
      71,123                  72,689 
                  
Derivative financial instruments                       13         1,823          
       2,645                   3,253 
                 
Other assets                                                    132,892          


         130,251                 137,191
                    
                                                              1,818,099         
       1,752,833               1,755,781


                 
Current assets        
                                                                             
                                        
Inventories                                                     253,264          
     282,471                 253,676 
               
Trade and other receivables                                      24,321          
      37,193                  24,210 
                      
Derivative financial instruments                       13         1,009          
       4,936                   1,366 
                         
Other current assets                                             87,270          
      96,354                 113,945 
                     
Cash and cash equivalents                                       269,596          


         320,873                 282,409
                         
                                                                635,460         
         741,827                 675,606


                      
Assets of disposal group classified as held for sale                  -          
           -                     596 
                               
Total assets                                                  2,453,559          
   2,494,660               2,431,983 
                     
EQUITY AND LIABILITIES        
Share capital and share premium                                 929,199          
     929,199                 929,199 
                   
Other reserves                                                1,024,816          
   1,075,515                 992,915 
                   
Total owners' equity                                          1,954,015          
   2,004,714               1,922,114 
                     
Non-controlling interests                                         4,781          
      10,392                   5,248 
                    
Total equity                                                  1,958,796          


       2,015,106               1,927,362

Non-current liabilities                                                         
                                        


                     
Borrowings                                             14       142,000          
      80,000                 142,000 
                 
Deferred tax liabilities                                         52,841          
      37,686                  35,862 
                 
Derivative financial instruments                       13           203          
       1,566                   1,207 
Provisions                                                      149,075          


         147,843                 132,237

Other non-current liabilities                                    13,824         
          17,656                  10,101
                                                                357,943         
         284,751                 321,407

Current liabilities                                                             
                                        

Trade and other payables                                        123,920         
         171,547                 147,896

Derivative financial instruments                       13         1,869         
           8,514                   5,074

Provisions                                                          991         
          10,610                   1,028

Other current liabilities                                        10,040         
           4,132                  12,456
                                                                136,820         
         194,803                 166,454

Liabilities of disposal group classified as held for sale             -         
               -                  16,760

Total liabilities                                               494,763         
         479,554                 504,621
                                                                                
                                                                                
                                                                                


    
Total equity and liabilities                                  2,453,559          
   2,494,660               2,431,983 
The notes on pages 32-44 form an integral part of this financial information. 
Consolidated Statement of Changes in Equity 
                                                                   
Contributed    Cash         
                                                                      
surplus/    flow   Stock 
                                                     Share   Share       
Other hedging  option 
                                             Notes capital premium     
reserve reserve reserve 
                                                                             
              
(US$'000)                                                                        


                  
                                                                                


              
Balance at 31 December 2012 (Audited)                   62,097 867,102   
1,368,713     363   3,502 
                                                                             
              
Total comprehensive income/(loss)                            -       -          
 -     560       - 
                                                                             
              
Dividends to equity holders of the Company                   -       -          
 -       -       - 
                                                                             
              
Stock option grants and valuation adjustments                -       -          
 -       -     114 
                                                                             
              
Balance at 30 June 2013 (Unaudited)                     62,097 867,102   
1,368,713     923   3,616 
                                                                             
              
Total comprehensive income/(loss) for the period             -       -          
 -   1,010       - 
                                                                             
              
Dividends to equity holders of the Company                   -       -          
 -       -       - 
                                                                             
              
Stock option grants and valuation adjustments                -       -          
 -       -     362 
                                                                             
              
Balance at 31 December 2013 (Audited)                   62,097 867,102   
1,368,713   1,933   3,978 
                                                                             
              
Total comprehensive (loss)/income for the period             -       -          
 - (1,037)       - 
                                                                             
              
Dividends to equity holders of the Company          12       -       -          
 -       -       - 
                                                                             
              
Stock option grants and valuation adjustments                -       -          
 -       -     318 
                                                                             
              
Balance at 30 June 2014 (Unaudited)                     62,097 867,102   
1,368,713     896   4,296 


                                                                                
                  
                                                              Retained             
                   


                                                      earnings/     Total  
Total non-           
                                                   (Accumulated   owners' 
controlling     Total 
                                             Notes      losses)    equity   
interests    equity 
                                                                             
               
(US$'000)                                                                        


                   
                                                                                


               
Balance at 31 December 2012 (Audited)                       453,934 2,755,711    
22,580 2,778,291 
                                                                             
               
Total comprehensive income/(loss)                         (701,230) (700,670)   
 (12,188) (712,858) 
                                                                             
               
Dividends to equity holders of the Company                 (50,441)  (50,441)    


        -  (50,441)
                                                                                


               
Stock option grants and valuation adjustments                     -       114    


        -       114
                                                                                


               
Balance at 30 June 2013 (Unaudited)                       (297,737) 2,004,714    
10,392 2,015,106 
                                                                             
               
Total comprehensive income/(loss) for the period           (79,871)  (78,861)   
  (5,144)  (84,005) 
                                                                             
               
Dividends to equity holders of the Company                  (4,101)   (4,101)    


        -   (4,101)
                                                                                


               
Stock option grants and valuation adjustments                     -       362    


        -       362
                                                                                


               
Balance at 31 December 2013 (Audited)                     (381,709) 1,922,114    


    5,248 1,927,362
                                                                                


               
Total comprehensive (loss)/income for the period             40,822    39,785    


    (467)    39,318
                                                                                


               
Dividends to equity holders of the Company          12      (8,202)   (8,202)    


        -   (8,202)
                                                                                


               
Stock option grants and valuation adjustments                     -       318    


        -       318
                                                                                


               
Balance at 30 June 2014 (Unaudited)                       (349,089) 1,954,015    


    4,781 1,958,796
                                                                                
                   
    The notes on pages 32-44 form an integral part of this financial information.
    Consolidated Statement of Cash Flows
                                                                                   
       For the
                                                                                
          year


                                                           For the six 
months     ended 31 


                                                                  ended 30 June 
      December
                                                                                
              


                                                         (Unaudited) 
(Unaudited) (Audited) 
                                                                             
          
(US$'000)                                              Notes        2014        
2013      2013 
                                                                             
          
Cash flows from operating activities                                             


              
                                                                                


          
Net profit/(loss) for the period                                  40,355   
(713,418) (798,433) 
                                                                             
          
Adjustments for:                                                                 


              
                                                                                


          
  Tax expense/(credit)                                   9        22,716   
(184,648) (187,959) 
                                                                             
          
  Depreciation and amortisation                                   64,746      
90,101   141,159 
                                                                             
          
  Finance items                                                    3,855       
3,770     7,968 
                                                                             
          
  Impairment charges                                                   -     
927,690 1,061,011 
                                                                             
          
  Profit on disposal of property, plant and equipment            (4,113)        
(86)     (175) 
                                                                             
          
Working capital adjustments                                      (3,785)    
(25,856)  (41,165) 
                                                                             
          
Other non-cash items                                               4,730       
3,067     8,181 
                                                                             
          
Cash generated from operations before interest and tax           128,504     
100,620   190,587 
                                                                             
          
Finance income                                                       666       
1,005     1,700 
                                                                             
          
Finance expenses                                                 (2,063)     
(2,608)   (5,172) 
                                                                             
          
Income tax paid                                                        -         
-         - 
                                                                             
          
Net cash generated by operating activities                       127,107      
99,017   187,115 


                                                                                
              
                                                                                
              
                                                                                


          
Cash flows from investing activities                                             


              
                                                                                


          
Purchase of property, plant and equipment                      (116,496)   
(207,210) (373,101) 
                                                                             
          
Investments in other assets                                         (83)     
(2,032)   (8,289) 
                                                                             
          
Cash flow related to the sale of Tulawaka                5      (11,633)         
-         - 
                                                                             
          
Acquisition of subsidiary, net of cash acquired                        -         
-     (588) 
                                                                             
          
Other investing activities                                           138        
 420   (4,872) 
                                                                             
          
Net cash used in investing activities                          (128,074)   
(208,822) (386,850) 


                                                                                
              
                                                                                
              
                                                                                


          
Cash flows from financing activities                                             


              
                                                                                


          
Loans received                                          14             -      
80,000   142,000 
                                                                             
          
Dividends paid                                          11       (8,202)    
(50,441)  (54,541) 
                                                                             
          
Finance lease instalments                                        (2,883)     
(1,971)   (5,137) 
                                                                             
          
Net cash (used in)/generated by financing activities            (11,085)      
27,588    82,322 


                                                                                
              
                                                                                
              
                                                                                


          
Net decrease in cash and cash equivalents                       (12,052)    
(82,217) (117,413) 
                                                                             
          
Net foreign exchange difference                                    (761)       
1,742   (1,526) 
                                                                             
          
Cash and cash equivalents at 1 January                           282,409     
401,348   401,348 
                                                                             
          
Cash and cash equivalents at period end                          269,596     
320,873   282,409 


                                                                                
              


The notes on pages 32-44 form an integral part of this financial information. 
Notes to the Consolidated Interim Financial Information 
GENERAL INFORMATION 
African Barrick Gold plc (the "Company") is a public limited company, which is
listed on the London Stock Exchange and incorporated and domiciled in the UK.
It is registered in England and Wales with registered number 7123187. The
address of its registered office is 5th Floor, No.1 Cavendish Place, W1G 0QF,
United Kingdom. 
Barrick Gold Corporation currently owns 63.9 percent of the shares of the
Company and is the ultimate controlling party of the Group. 
This condensed consolidated interim financial information for the six months
ended 30 June 2014 were approved for issue by the Board of Directors of the
company on 24 July 2014. The condensed consolidated interim financial
information does not comprise statutory accounts within the meaning of section
434 of the Companies Act 2006. Statutory accounts for the year ended 31
December 2013 were approved by the Board of Directors on 11 March 2014 and
delivered to the Registrar of Companies. The report of the auditors' on those
accounts was unqualified, did not contain an emphasis of matter paragraph and
did not contain any statement under section 498 of the Companies Act 2006. The
condensed consolidated interim financial information has been reviewed, not
audited. 
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 across Tanzania and Kenya.  
BASIS OF PREPARATION OF the condensed annual financial statements 
The condensed consolidated interim financial information for the six months
ended 30 June 2014 has been prepared in accordance with the Disclosure and
Transparency Rules of the Financial Conduct Authority and with IAS 34, 'Interim
Financial Reporting' as adopted by the European Union. The condensed
consolidated interim financial information should be read in conjunction with
the annual financial statements for the year ended 31 December 2013, which have
been prepared in accordance with IFRS as adopted by the European Union. 
The condensed consolidated interim financial information has been prepared
under the historical cost basis, as modified by the revaluation of financial
assets and financial liabilities (including derivative instruments) at fair
value through profit or loss. 
The financial information is presented in US dollars (US$) and all monetary
results are rounded to the nearest thousand (US$'000) except when otherwise
indicated. 
Where a change in the presentational format between the prior period and the
current period financial information has been made during the period,
comparative figures have been restated accordingly. The following
presentational changes were made during the current period: 
Presentation of the results of discontinued operations due to the sale of
Tulawaka mine to STAMICO, the Tanzanian State Mining Corporation. Refer to note
5 for a discussion of the transaction. 
The group's activities expose it to a variety of financial risks: market risk
(including currency risk, fair value interest rate risk, cash flow interest
rate risk and price risk), credit risk and liquidity risk. The condensed
interim financial statements do not include all financial risk management
information and disclosures required in the annual financial statements; they
should be read in conjunction with the group's annual financial statements as
at 31 December 2013. There have been no changes in the risk management
department or in any risk management policies since the year end. 
The impact of the seasonality on operations is not considered as significant on
the condensed consolidated interim financial information. 
After making enquiries, the Directors have a reasonable expectation that the
Group has adequate resources to continue in operational existence for the
foreseeable future. The Group therefore continues to adopt the going concern
basis in preparing the consolidated interim financial information. Refer page
22 for the Going Concern statement. 
ACCOUNTING POLICIES 
The accounting policies adopted are consistent with those used in the African
Barrick Gold plc annual financial statements for the year ended 31 December
2013 except as described below. 
Taxes on income in the interim periods are accrued using the tax rate that
would be applicable to expected total annual earnings. 
IFRS 10, 'Consolidated financial statements', IFRS 11, 'Joint arrangements' and
IFRS 12 'Disclosures of interests in other entities'. The adoption of these
standards has had no effect on the financial statements for earlier periods and
on the interim financial statements for the period ended 30 June 2014 and is
not expected to have a significant effect on the results for the financial year
ending 31 December 2014. 
IFRIC 21 'Levies'. IFRIC 21 addresses the accounting for a liability to pay a
levy if that liability is within the scope of IAS 37 'Provisions'. The
interpretation addresses what the obligating event is that gives rise to pay a
levy, and when should a liability be recognised. The group is not currently
subject to significant levies. The adoption of the interpretation has had no
significant effect on the financial statements for earlier periods and on the
interim financial statements for the period ended 30 June 2014. The group does
not expect IFRIC 21 to have a significant effect on the results for the
financial year ending 31 December 2014. 
There are no other new standards, interpretations or amendments to standards
issued and effective for the period which materially impacted on the Group. 
The following exchange rates to the US dollar have been applied: 
                                                                          
Average  
                                 Average            Average                
year    
                         As at  six months  As at  six months    As at     
ended   
                          30      ended      30      ended        31        
31     
                         June    30 June    June    30 June    December  
December  
                         2014      2014     2013      2013       2013      
2013    
                                                                             
  
South African Rand (US$:ZAR) 10.62    10.70     9.88      9.20       10.50     
9.63    
                                                                             
  
Tanzanian Shilling (US$:TZS) 1,650    1,628     1,603    1,590       1,590     
1,598   
                                                                             
  
Australian Dollars (US$:AUD) 1.06      1.09     1.08      0.99       1.12      
1.03    
                                                                             
  
UK Pound (US$:GBP)           0.58      0.60     0.66      0.65       0.60      
0.64    
  
ESTIMATES 
The preparation of interim financial statements requires management to make
judgements, estimates and assumptions that affect the application of accounting
policies and the reported amounts of assets and liabilities, income and
expense. Actual results may differ from these estimates. 
In preparing these condensed consolidated interim financial statements, the
significant judgements made by management in applying the Group's accounting
policies and the key sources of estimation uncertainty were the same as those
that applied to the consolidated financial statements for the year ended 31
December 2013, with the exception of changes in estimates that are required in
determining the provision for income taxes (see note 3). 
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 would acquire the
Tulawaka Gold Mine ("Tulawaka") and certain exploration licences 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$0.5
million. 
On 4 February 2014, ABG announced the completion of the sale. STAMICO has taken
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 has
indemnified the other parties to the agreement in relation to these
liabilities. The transfer was completed with a net cash payment of US$11.6
million by ABG to STAMICO for the balance of the rehabilitation fund, less the
transaction consideration. This resulted in a net gain on sale of assets of
US$4.1 million. After non operational costs incurred in the six months to 30
June 2014 and other closing adjustments, this resulted in a total cash outflow
year to date of US$14.4 million. 
The financial results of Tulawaka have been presented as discontinued
operations in the consolidated interim financial information. The comparative
results in the consolidated interim income statement have been presented as if
Tulawaka had been discontinued from the start of the comparative period. 
Below is a summary of the results of Tulawaka for the six months ended 30 June
2014 and 30 June 2013, and year ended 31 December 2013: 
                                                                           
For the  
                                                                            
year    
                                                                            
ended   


                                                                                
       


                                                    For the six months      
 31     
                                                       ended 30 June      
December  


                                                                                
       


                                                  (Unaudited) (Unaudited) 
(Audited) 
                                                                             
   
(US$'000)                                                    2014        2013    
2013 
                                                                             
   
Results of discontinued operations                                               


       
                                                                                


   
Revenue                                                         -      12,392   
 13,514 
                                                                             
   
Cost of sales                                                   -    (28,151)  
(30,368) 
                                                                             
   
Gross loss                                                      -    (15,759)  
(16,854) 
                                                                             
   
Corporate administration                                        -     (1,187)   
(1,311) 
                                                                             
   
Exploration and evaluation costs                               -          161    


      -
                                                                                


   
Corporate social responsibility expenses1                    (92)       (690)   
(3,259) 
                                                                             
   
Impairment charges                                              -    (16,701)  
(16,701) 
                                                                             
   
Other charges2                                                958     (6,496)  
(19,442) 
                                                                             
   
Profit/(loss) before net finance expense and taxation         866    (40,672)  
(57,567) 
                                                                             
   
Finance income                                                 36          10    


     30
                                                                                


   
Finance expense                                              (16)        (79)   
  (116) 
                                                                             
   
Profit/(loss) before taxation                                 886    (40,741)  
(57,653) 
                                                                             
   
Tax expense                                                     -           -    


      -
                                                                                


   
Net profit/(loss) for the period                              886    (40,741)  
(57,653) 
1 Corporate social responsibility expenses relate to projects supported from
the ABG Maendeleo Fund. 
2 Other charges consist of non-operational costs incurred since the cessation
of operations. 
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; Tulawaka gold mine; Bulyanhulu gold
mine; Buzwagi gold mine; and a separate Corporate and Exploration segment,
which primarily consist of costs related to corporate administration and
exploration and evaluation activities ("Other"). 
Segment results and assets include items directly attributable to the segment
as well as those that can be allocated on a reasonable basis. Segment assets
consist primarily of property, plant and equipment, inventories, other assets
and receivables. Capital expenditures comprise additions to property, plant and
equipment. Segment liabilities are not reported since they are not considered
by the CODM as material to segment performance. The Group has also included
segment cash costs. 
Segment information for the reportable operating segments of the Group for the
six months ended 30 June 2014 and 30 June 2013, and year ended 31 December 2013
is set out below. 
                                                            For the six months 
ended 30 June 2014                  
                                                                             
                               
(Unaudited)                                    North                            
  Continuing Discontinued          
(US$'000)                                       Mara Bulyanhulu  Buzwagi    
Other operations  operations6     Total 
                                                                             
                               
Gold revenue                                 176,669    130,319  119,777        
-    426,765            -   426,765 
                                                                             
                               
Co-product revenue                               280      8,426   10,038        
-     18,744            -    18,744 
                                                                             
                               
Total segment revenue                        176,949    138,745  129,815        
-    445,509            -   445,509 
                                                                             
                               
Segment cash operating cost1                (80,427)   (96,092) (91,259)        
-  (267,778)            - (267,778) 
                                                                             
                               
Corporate administration and exploration     (5,005)    (4,605)  (4,008) 
(16,269)   (29,887)            -  (29,887) 
                                                                             
                               
Other charges and corporate social                                               
                               
responsibility expenses                      (6,196)    (4,519)  (6,596)      
222   (17,089)          866  (16,223) 
                                                                             
                               
EBITDA2                                       85,321     33,529   27,952 
(16,047)    130,755          866   131,621 
                                                                             
                               
Impairment charges                                                               


           -            -         -
                                                                                


                               
Depreciation and amortisation7              (35,724)   (20,063)  (7,470)  
(1,439)   (64,696)            -  (64,696) 
                                                                             
                               
EBIT2                                         49,597     13,466   20,482 
(17,486)     66,059          866    66,925 
                                                                             
                               
Finance income                                   136         72      195      
226        630           36       666 
                                                                             
                               
Finance expense                              (1,263)      (766)  (1,230)  
(1,246)    (4,504)         (16)   (4,520) 
                                                                             
                               
Profit before taxation                        48,471     12,772   19,447 
(18,506)     62,185          886    63,071 
                                                                             
                               
Tax expense                                 (14,783)    (3,507)  (5,835)    
1,408   (22,716)            -  (22,716) 
                                                                             
                               
Net profit for the period                     33,689      9,265   13,612 
(17,097)     39,469          886    40,355 


                                                                                
                                   
                                                                                
                                   
                                                                                


                               
Capital expenditure:                                                             


                                   
                                                                                


                               
Sustaining                                     8,088      4,482    5,776      
626     18,972            -    18,972 
                                                                             
                               
Expansionary                                     978     25,831        -        
-     26,809            -    26,809 
                                                                             
                               
Capitalised development                       25,392     28,414   15,157         


      68,963            -    68,963
                                                                                


                               
Reclamation asset addition                     5,358      8,721      839        
-     14,918            -    14,918 
                                                                             
                               
Total capital expenditure                     39,816     67,448   21,772      
626    129,662            -   129,662 


                                                                                
                                   
                                                                                
                                   
                                                                                


                               
Segmental cash operating cost                 80,427     96,092   91,259        
-    267,778            -   267,778 
                                                                             
                               
Deduct: co-product revenue                     (280)    (8,426) (10,038)        
-   (18,744)            -  (18,744) 
                                                                             
                               
Total cash costs                              80,147     87,666   81,221        
-    249,034            -   249,034 
                                                                             
                               
Sold ounces3                                 137,340    101,165   92,442        
-    330,947            -   330,947 
                                                                             
                               
Cash cost per ounce sold2                        584        867      879         


         752            -       752
                                                                                


                               
Attributable to outside interests4                                               


                                  -
                                                                                


                               
Attributable cash cost per ounce sold2                                           


                                752
                                                                                
                                   
                                                                                
                                   
                                                                                


                               
Cash cost per ounce sold2                        584        867      879         


         752            -       752
                                                                                


                               
Corporate administration charges                  35         43       42         


          57            -        57
                                                                                


                               
Rehabilitation - accretion and depreciation       19          7        7         


          12            -        12
                                                                                


                               
Mine site exploration costs                        1          2        1         


           2            -         2
                                                                                


                               
Corporate social responsibility expenses          15          4       14         


          13            -        13
                                                                                


                               
Capitalised stripping/ UG development            185        281      164         


         208            -       208
                                                                                


                               
Sustaining capital expenditure8                   97         45       62         


          74            -        74
                                                                                


                               
Attributable to outside interests4                                               


                                  -
                                                                                


                               
All-in sustaining cost per ounce sold2           936      1,249    1,169         


       1,118            -     1,118
                                                                                
                                   
                                                                                
                                   
                                                                                


                               
Segment carrying value5                      344,975  1,158,894  257,522   
92,844  1,854,235            - 1,854,235 


                                                                                
                                   
                                                                                   
                                     
                                                                                
                                     


                                                    For the six months 
ended 30 June 2013 (Restated)              
                                                                             
                                 
(Unaudited)                                 North                                
Continuing Discontinued          
(US$'000)                                   Mara      Bulyanhulu Buzwagi   
Other    operations  operations6 Total     
                                                                             
                                 
Gold revenue                                  194,992    127,244   142,454      
  -    464,690       12,365   477,055 
                                                                             
                                 
Co-product revenue                                365      7,704    14,601      
  -     22,670           27    22,697 
                                                                             
                                 
Total segment revenue                         195,357    134,948   157,055      
  -    487,360       12,392   499,752 
                                                                             
                                 
Segment cash operating cost1                 (96,538)   (98,425) (103,103)       


     (298,066)     (19,441) (317,507)
                                                                                


                                 
Corporate administration and exploration      (7,141)    (7,439)  (16,468)    
9,611   (21,437)      (1,026)  (22,463) 
                                                                             
                                 
Other charges and corporate social                                               
                                 
responsibility expenses                       (6,729)    (3,355)   (3,814)  
(7,927)   (21,825)      (7,186)  (29,011) 
                                                                             
                                 
EBITDA2                                        84,949     25,729    33,670    
1,684    146,032     (15,261)   130,771 
                                                                             
                                 
Impairment charges                          (173,938)          - (690,478) 
(46,573)  (910,989)     (16,701) (927,690) 
                                                                             
                                 
Depreciation and amortisation7               (40,859)   (16,645)  (29,332)  
(1,831)   (88,667)      (8,710)  (97,377) 
                                                                             
                                 
EBIT2                                       (129,848)      9,084 (686,140) 
(46,720)  (853,624)     (40,672) (894,296) 
                                                                             
                                 
Finance income                                    170        581       221      
 24        995           10     1,005 
                                                                             
                                 
Finance expense                               (1,196)      (783)   (1,168)  
(1,549)    (4,696)         (79)   (4,775) 
                                                                             
                                 
Loss before taxation                        (130,874)      8,882 (687,088) 
(48,245)  (857,325)     (40,741) (898,066) 
                                                                             
                                 
Tax expense                                    33,278    (2,892)   146,754    
7,507    184,648            -   184,648 
                                                                             
                                 
Net loss for the period                      (97,595)      5,990 (540,334) 
(40,738)  (672,677)     (40,741) (713,418) 


                                                                                
                                     
                                                                                
                                     
                                                                                


                                 
Capital expenditure:                                                             


                                     
                                                                                


                                 
Sustaining                                     23,962     15,546    20,657      
 85     60,250          583    60,833 
                                                                             
                                 
Expansionary                                      504     52,421         -      
941     53,866            -    53,866 
                                                                             
                                 
Capitalised development                        28,917     24,102    41,338      
  -     94,357            -    94,357 
                                                                             
                                 
Reclamation asset reduction                   (5,950)    (9,208)   (6,809)      
  -   (21,967)        (161)  (22,128) 
                                                                             
                                 
Total capital expenditure                      47,433     82,861    55,186    
1,026    186,506          422   186,928 


                                                                                
                                     
                                                                                
                                     
                                                                                


                                 
Segmental cash operating cost                  96,538     98,425   103,103      
  -    298,066       19,441   317,507 
                                                                             
                                 
Deduct: co-product revenue                      (365)    (7,704)  (14,601)      
  -   (22,670)         (27)  (22,697) 
                                                                             
                                 
Total cash costs                               96,173     90,721    88,502      
  -    275,396       19,414   294,810 
                                                                             
                                 
Sold ounces3                                  130,200     87,802    96,367      
  -    314,369        7,950   322,319 
                                                                             
                                 
Cash cost per ounce sold2                         739      1,033       918      
  -        876        2,442       915 
                                                                             
                                 
Attributable to outside interests4                                               


                                 (12)
                                                                                


                                 
Attributable cash cost per ounce sold2                                           


                                  903
                                                                                
                                     
                                                                                
                                     
                                                                                


                                 
Cash cost per ounce sold2                         739      1,033       918       


           876        2,442       915
                                                                                


                                 
Corporate administration charges                   39         80        54       


            44          149        46
                                                                                


                                 
Rehabilitation - accretion and depreciation        34          8        21       


            23           77        24
                                                                                


                                 
Mine site exploration costs                        16          4         3       


             8         (20)         8
                                                                                


                                 
Corporate social responsibility expenses           29          5         4       


            20           87        21
                                                                                


                                 
Capitalised stripping/ UG development             222        274       429       


           300            -       293
                                                                                


                                 
Sustaining capital expenditure8                   234        177       214       


           212           73       209
                                                                                


                                 
Attributable to outside interests4                                               


                                  (9)
                                                                                


                                 
All-in sustaining cost per ounce sold2          1,313      1,581     1,643       


         1,483        2,808     1,507
                                                                                
                                     
                                                                                
                                     
                                                                                


                                 
Segment carrying value5                       456,914  1,052,184   209,064   
79,653  1,797,815            - 1,797,815 


                                                                                
                                     


                                                                For the year 
ended 31 December 2013                     
                                                                             
                                    
(Audited)                                                                        


                                        
                                                North                           


 Continuing Discontinued            
(US$'000)                                        Mara Bulyanhulu   Buzwagi    
Other  operations  operations6       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 amortisation7               (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)
                                                                                


                                    
Attributable cash cost per ounce sold2                                           


                                     827
                                                                                
                                        
                                                                                
                                        
                                                                                


                                    
Cash cost per ounce sold2                         659        890       945       


            812        2,335         833
                                                                                


                                    
Corporate administration charges                   38         72        51       


             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       


             19          371          24
                                                                                


                                    
Capitalised stripping/ UG development             251        233       321       


            266            -         262
                                                                                


                                    
Sustaining capital expenditure8                   207        133       168       


            175           66         173
                                                                                


                                    
Attributable to outside interests4                                               


                                     (6)
                                                                                


                                    
All-in sustaining cost per ounce sold2          1,227      1,344     1,506       


          1,346        3,013       1,362
                                                                                
                                        
                                                                                
                                        
                                                                                


                                    
Segment carrying value5                       367,326  1,116,142   253,344   
81,005   1,817,817       10,489   1,828,306 


                                                                                
                                        
                                                                               

1  The CODM reviews cash operating costs for the three 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 23 for definitions.

3  Reflects 100% of ounces sold.

4  Reflects the adjustment for non-controlling interests at Tulawaka.

5  Segment carrying values are calculated as shareholders equity after adding
back debt and intercompany liabilities, and subtracting cash and intercompany
assets and include outside shareholder's interest.

6  Represents Tulawaka which has been discontinued.

7  Depreciation and amortisation includes the depreciation component of the
cost of inventory sold.

8  Sustaining capital expenditure for the purposes of all-in sustaining cost
per ounce sold includes land purchases which are classified as long term
prepayments in the balance sheet.


OTHER CHARGES


                                                                             
For the  


                                                                                
    year   
                                                                                
    ended  


                                                    For the six months 
ended     31     
                                                            30 June         
  December  


                                                                                
           


                                                   (Unaudited)    
(Unaudited) (Audited) 
                                                                             
       
(US$'000)                                                     2014 2013 
Restated1      2013 
                                                                             
       
Other expenses                                                                   


           
                                                                                


       
Operational Review costs (including retrenchment cost)       5,317          
1,629    13,305 
                                                                             
       
Foreign exchange losses (net)                                7,794             
40         - 
                                                                             
       
Non-hedge derivative losses (net)                                -          
4,807     7,203 
                                                                             
       
Government levies and charges                                  527              
-     2,387 
                                                                             
       
Bad debt expense                                                 -          
1,159     1,369 
                                                                             
       
Disallowed indirect taxes                                      401          
3,784     1,463 
                                                                             
       
Legal costs                                                  1,931          
1,018     3,138 
                                                                             
       
CNG related costs (residual)                                     -          
2,374     3,246 
                                                                             
       
Discounting of indirect tax receivables                          -          
1,375     1,375 
                                                                             
       
Other                                                            -              
-     3,617 
                                                                             
       
Total                                                       15,970         
16,186    37,103 


                                                                                
           
                                                                                
           
                                                                                


       
Other income                                                                     


           
                                                                                


       
Profit on disposal of property, plant and equipment           (45)           
(86)      (99) 
                                                                             
       
Insurance theft claim                                            -              
-   (2,958) 
                                                                             
       
Construction and consumable inventory gains                      -          
(111)         - 
                                                                             
       
Non-hedge derivative gains (net)                           (2,748)              
-         - 
                                                                             
       
Foreign exchange gains (net)                                     -              
-   (3,622) 
                                                                             
       
Other                                                        (395)          
(392)         - 
                                                                             
       
Total                                                      (3,188)          
(589)   (6,679) 


                                                                                
           
                                                                                
           
                                                                                


       
Total other charges                                         12,782         
15,597    30,424 
1  Restated due to the classification of Tulawaka as a discontinued operation.
Refer to note 5. 
FINANCE INCOME AND FINANCE EXPENSE 
Finance income 
                                For the six months ended       For the year 
ended   
                                        30 June                   31 
December       


                                                                                
       


                               (Unaudited)       (Unaudited)              
(Audited) 
                                                                             
   
(US$'000)                                 2014    2013 Restated3                 
2013 
                                                                             
   
Interest on time deposits                  382               753                 


    937
                                                                                


   
Other                                      248               242                 


    733
                                                                                


   
Total                                      630               995                
  1,670 


                                                                                
       
    Finance expense


                                                                             
For the  


                                                                                
    year   
                                                                                
    ended  


                                                    For the six months 
ended     31     
                                                            30 June         
  December  


                                                                                
           


                                                   (Unaudited)    
(Unaudited) (Audited) 
                                                                             
       
(US$'000)                                                     2014 2013 
Restated3      2013 
                                                                             
       
Unwinding of discount1                                       2,457          
2,145     4,468 
                                                                             
       
Revolving credit facility charges2                           1,194          
1,510     3,050 
                                                                             
       
Interest on CIL facility                                     1,972            
757     2,413 
                                                                             
       
Interest on finance lease liability                            164            
333       658 
                                                                             
       
Bank charges                                                   313            
396       756 
                                                                             
       
Other                                                          376            
312       620 


                                                                                
           


                                                         6,476          
5,453    11,965 
                                                                             
       
Capitalised during the year - interest on CIL facility     (1,972)          
(757)   (2,413) 
                                                                             
       
Total                                                        4,504          
4,696     9,552 
1  The unwinding of discount is calculated on the environmental rehabilitation
provision. 
2  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. 
3  Restated due to the classification of Tulawaka as a discontinued operation.
Refer to Note 5. 


    TAX (CREDIT)/EXPENSE
                                                                                   
              For the year  


                                                              For the six 
months ended        ended      
                                                                       30 
June             31 December   


                                                                                
                            


                                                              (Unaudited)   
 (Unaudited)       (Audited) 
                                                                             
                        
(US$'000)                                                                2014 
2013 Restated1            2013 
                                                                             
                        
Current tax:                                                                     


                            
                                                                                


                        
Current tax on profits for the period                                       -    


          28               -
                                                                                


                        
Adjustments in respect of prior years                                       -    


           -              40
                                                                                


                        
Total current tax                                                           -    


          28            40  
                                                                                


                        
Deferred tax:                                                                    


                            
                                                                                


                        
Origination and reversal of temporary differences                      22,716    
(184,676)       (187,999) 
                                                                             
                        
Total deferred tax                                                     22,716    
(184,676)       (187,999) 
                                                                             
                        
Income tax expense/(credit)                                            22,716    
(184,648)       (187,959) 
                                                                             
                        
1 Restated due to the classification of Tulawaka as a discontinued operation.    
                        
Refer to note 5.                                                                 


                            
                                                                                


                        
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 follow:                                          


                            
                                                                                
                            
                                                                                
                            
                                                                                
                            
                                                                                
              For the year  


                                                              For the six 
months ended       ended       
                                                                      30 
June             31 December    


                                                                                
                            


                                                             (Unaudited)    
(Unaudited)        (Audited) 
                                                                             
                        
(US$'000)                                                               2014  
2013 Restated             2013 
                                                                             
                        
Tax on profit/(loss) calculated at the Tanzanian tax rate of 30%      18,655    
  (269,420)        (292,917) 
                                                                             
                        
Tax effects of:                                                                  


                            
                                                                                


                        
Prior year adjustments                                                     -     


          -            5,572
                                                                                


                        
Other non-deductible expenses                                            254     


         93           13,111
                                                                                


                        
Effect of tax rates in foreign jurisdictions                           (426)     


    (1,754)            1,371
                                                                                


                        
Deferred tax assets not recognised                                     4,233     


     73,540           84,904
                                                                                


                        
Income tax payable                                                         -     


       (28)                -
                                                                                


                        
Impairment of goodwill                                                     -     


     12,921                -
                                                                                


                        
Tax charge/(credit)                                                   22,716    
  (184,648)        (187,959) 
The tax rate in Tanzania is 30% (2013: 30%) and in South Africa 28% (2013:       
   
28%).                                                                            


       
                                                                                


    
Tax periods remain open to review by the Tanzania Revenue Authority ("TRA") in
respect of income taxes for 5 years following the date of the filling 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. The Group has
previously accounted for an adjustment to unrecognised tax benefits in respect
of tax losses to reflect uncertainty regarding recoverability of certain tax
losses. The Group makes no further provision in respect of such potential tax
assessments. 
Earnings/ (LOSS) per share 
Basic earnings/ (loss) per share ("EPS") is calculated by dividing the net
profit/ (loss) for the period attributable to owners of the Company by the
weighted average number of Ordinary Shares in issue during the period. 
Diluted earnings/ (loss) 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 30 June 2014, 30 June 2013 and 31 December 2013, (loss)/earnings per share
have been calculated as follows: 


                                                                                
                          For the  


                                                                  For the 
six months ended          year ended 
                                                                            
 30 June                31 December 
                                                                    
(Unaudited)    (Unaudited)      (Audited)                                    
(US$'000)                                                                    
2014      2013 Restated1 2013 Restated                      
Earnings/(loss)                                                                  
                                                       
Net profit/(loss) from continuing operations attributable to
owners of the parent                                                       
39,469           (672,677)   (740,780) 
                                                                             
                                                       
Net profit/(loss) from discontinued operations attributable                      


                                           to owners of the parent              
                                      1,353             (28,553)    (40,321)
                                                                                
                                                                                
                                                                                


                                  
Weighted average number of Ordinary Shares in issue                   
410,085,499         410,085,499  410,085,499 
                                                                             
                                                       
Adjusted for dilutive effect of stock options                             
194,163                   -            - 
                                                                             
                                                       
Weighted average number of Ordinary Shares for diluted                
410,279,662         410,085,499  410,085,499
earnings per share                               
                                                                             
                                                       
Earnings/(loss) per share                                                    
10.0              171.0        (190.4) 
                                                                             
                                                       
Basic and dilutive earnings/(loss) per share from                             
9.6             (164.0)       (180.6)
continuing operations (cents)                          
Basic and dilutive earnings/(loss) per share from                              
discontinued operations (cents)                                               
0.4               (7.0)         (9.8) 
1 Restated due to the classification of Tulawaka as a discontinued operation.    
   
Refer to note 5.                                                                 


       
                                                                                
       

11.  DIVIDENDS

The final dividend declared in respect of the year ended 31 December 2013 of
US$8.2 million (US2.0 cents per share) was paid during 2014.

12. Property plant and equipment
                                                      Mineral                   
        
                                                    properties     Assets       


    
For the six months ended 30 June 2014                and mine      under         
    
(Unaudited)                              Plant and  development construction     
    
(US$'000)                                equipment     costs         ¹         
 Total    
                                                                             
    
At 1 January 2014, net of accumulated                                            
    
depreciation                                296,299     596,166      388,206   
1,280,671 
                                                                             
    
Additions                                         -           -      129,662    
 129,662 
                                                                             
    
Depreciation                               (28,941)    (35,805)            -    
(64,746) 
                                                                             
    
Transfers between categories                 44,126      62,477    (106,603)     


       -
                                                                                


    
At 30 June 20142                            311,484     622,838      411,265   
1,345,587 


                                                                                
        
                                                                                
        
                                                                                


    
At 1 January 2014                                                                


        
                                                                                


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


                                                                                
        
                                                                                
        
                                                                                


    
At 30 June 2014                                                                  


        
                                                                                


    
Cost                                      1,441,472   1,378,395      448,142   
3,268,009 
                                                                             
    
Accumulated depreciation and impairment (1,129,988)   (755,557)     (36,877) 
(1,922,422) 
                                                                             
    
Net carrying amount                         311,484     622,838      411,265   
1,345,587 


                                                                                
        


For the six months                            Mineral       Assets            
ended 30 June 2013                     properties and        under            
(Unaudited)               Plant and  mine development construction            
(US$'000)                 equipment             costs            ¹       Total 


                                                                              
                                                                              


                                                                          
At 1 January 2013, net                                                        
of accumulated                                                                
depreciation and                                                              
impairment                  945,118           819,063      210,859   1,975,040 
                                                                          
Additions                         -                 -      186,928     186,928 
                                                                          
Impairments               (510,650)         (235,975)     (36,876)   (783,501) 
                                                                          
Depreciation               (54,907)          (35,446)            -    (90,353) 
                                                                          
Transfers between                                                             
categories                   74,457           104,360    (178,817)           - 
                                                                          
At 30 June 2013             454,018           652,002      182,094   1,288,114 


                                                                              
                                                                              


                                                                          
At 1 January 2013                                                              
                                                                          
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 


                                                                              
                                                                              


                                                                          
At 30 June 2013                                                                
                                                                          
Cost                      1,549,580         1,354,447      218,970   3,122,997 
                                                                          
Accumulated                                                                   
depreciation and                                                              
impairment              (1,095,562)         (702,445)     (36,876) (1,834,883) 
                                                                          
Net carrying amount         454,018           652,002      182,094   1,288,114 


                                                                              
                                                                         Mineral   
                        


                                                                properties   
Assets                
                                                                 and mine    
under                
(Audited)                                                Plant and  development 
construction            
(US$'000)                                                equipment     costs     


     ¹          Total   
                                                                                


                    
For the year ended 31 December 2013                                              


                        
                                                                                


                    
At 1 January 2013, net of accumulated depreciation and                           
                    
impairment                                                  945,118     819,063  


     210,859   1,975,040
                                                                                


                    
Additions                                                         -           -  


     354,328     354,328
                                                                                


                    
Disposals/write-downs                                         (477)           -  


           -       (477)
                                                                                


                    
Impairments                                               (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 and impairment                   (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
                                                                                


                    
Assets under construction represents (a) sustaining capital expenditures
incurred constructing tangible fixed assets related to operating mines and
advance deposits made towards the purchase of tangible fixed assets; 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. 
The gain on disposal of assets reflected in the income statement relates to the
assets disposed of in the sale of Tulawaka which were transferred to assets
held for sale in the year ended 31 December 2013. 
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 and spinning
power generators leased at Buzwagi mine under a three year lease agreement,
with an option to purchase the equipment at the end of the lease term. The
lease has been classified as a finance lease. 
Property, plant and equipment further includes drill rigs leased at Buzwagi
mine under a one year rent to own lease agreement. The lease has been
classified as a finance lease. 
The following amounts were included in property, plant and equipment where the
Group is a lessee under a finance lease: 
                                        For the six months ended   For the 
year ended  
                                             30 June               31 
December      


                                                                                
       


                                     (Unaudited)   (Unaudited)            
(Audited) 
                                                                             
   
(US$'000)                                       2014          2013               
2013 
                                                                             
   
 Cost - capitalised finance leases            70,764        68,846              
 70,764 
                                                                             
   
 Accumulated depreciation                   (16,836)      (17,065)             
(16,430) 
                                                                             
   
 Net carrying amount                          53,928        51,781              
 54,334 

13. Derivative financial instruments 
The table below analyses financial instruments carried at fair value, by
valuation method. The Group has derivative financial instruments in the form of
economic and cash flow hedging contracts which are all defined as level two
instruments as they are valued using inputs other than quoted prices that are
observable for the assets or liabilities. The following tables present the
group's assets and liabilities that are measured at fair value at 30 June 2014,
30 June 2013 and 31 December 2013. 
                                                         Assets         
Liabilities           


                                                                                
                 
                                                                                


          Net
(Unaudited)                                                                      
         fair
(US$'000)                                           Current Non-current Current 
Non-current value 
                                                                             
             
For the six months ended 30 June 2014                                            


                 
                                                                                


             
Interest contracts: Designated as cash flow hedges        -       1,823   1,204  


          -   619
                                                                                


             
Currency contracts: Not designated as hedges             66           -     665  


        203 (802)
                                                                                


             
Commodity contracts: Not designated as hedges           943           -       -  


          -   943
                                                                                


             
Total                                                 1,009       1,823   1,869  


        203   760
                                                                                
                 
    


                                                         Assets         
Liabilities             


                                                                                
                   
                                                                                


            Net
(Unaudited)                                                                      
           fair
(US$'000)                                           Current Non-current Current 
Non-current   value 
                                                                             
               
For the six months ended 30 June 2013                                            


                   
                                                                                


               
Currency contracts: Designated as cash flow hedges        -           -   1,652  


          - (1,652)
                                                                                


               
Interest contracts: Designated as cash flow hedges        -       2,645     903  


          -   1,742
                                                                                


               
Currency contracts: Not designated as hedges          1,148           -   5,848  


      1,542 (6,242)
                                                                                


               
Commodity contracts: Not designated as hedges         3,788           -     111  


         24   3,653
                                                                                


               
Total                                                 4,936       2,645   8,514  


      1,566 (2,499)
                                                                                
                   


                                                            Assets         
Liabilities             


                                                                                
                   
                                                                                


            Net
(Audited)                                                                        
           fair
(US$'000)                                           Current Non-current Current 
Non-current   value 
                                                                             
               
For the year ended 31 December 2013                                              


                   
                                                                                


               
Currency contracts: Designated as cash flow hedges        -           -       -  


        353   (353)
                                                                                


               
Interest contracts: Designated as cash flow hedges        -       3,191   1,168  


        449   1,574
                                                                                


               
Currency contracts: Not designated as hedges            158           3   3,666  


        387 (3,892)
                                                                                


               
Commodity contracts: Not designated as hedges         1,208          59     240  


         18   1,009
                                                                                


               
Total                                                 1,366       3,253   5,074  


      1,207 (1,662)
                                                                                
                   
    BORROWINGS

During 2013, a US$142 million facility was put in place to fund the bulk of the
costs of the construction of one of our key growth projects, the Bulyanhulu CIL
Expansion project ("Project"). The facility is collateralised by the Project,
and has a term of seven years with a spread over Libor of 250 basis points. The
seven year 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 3.6% through the use of an interest rate swap. The full facility of
US$142 million was drawn in 2013. Interest incurred on the borrowings has been
capitalised to the asset (US$2.0 million).

COMMITMENTS AND CONTINGENCIES

The Group is subject to various laws and regulations which, if not observed,
could give rise to penalties. As at 30 June 2014, the Group has the following
commitments and/or contingencies:

a)            Legal contingencies

As at 30 June 2014, the Group was a defendant in approximately 316 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, unpaid overtime and public
holiday compensation.

The total amounts claimed from lawsuits in which specific monetary damages are
sought amounted to US$163.6 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 is TRA claims to the value of
US$41.25 million for withholding tax on historic offshore dividend payments
paid by ABG 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 they will be
successfully defended.

b)            Tax-related contingencies

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 seven of ten issues raised by the TRA in final
assessments for the 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 Bulyanhulu to the Appeals Tribunal for all three
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.

 RELATED PARTY BALANCES AND TRANSACTIONS

The Group has related party relationships with entities owned or controlled by
Barrick Gold Corporation, which is the ultimate controlling party of the Group.

The Company and its subsidiaries, in the ordinary course of business, enter
into various sales, purchase and service transactions and other professional
services arrangements with others in the Barrick Group. These transactions are
under terms that are on normal commercial terms and conditions. These
transactions are not considered to be significant.

At 30 June 2014 the Group had no loans of a funding nature due to or from
related parties (30 June 2013: zero; 31 December 2013: zero).

subsequent events

The Board of the Company has approved an interim dividend of US1.4 cents per
share for this financial year to be paid on 22 September 2014 to shareholders
on the register on 29 August 2014.
    END

-0- Jul/25/2014 06:00 GMT


 
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