Annual Report and Accounts 2012
Investing In
Growth Company Overview
1
Amara Mining plc Annual Report & Accounts 2012
Our Strategy
To transition into a mid-tier
producer through the exploration
and development of our key
assets, underpinned by our
operating cashflow and strong
management team.
About Amara Mining plc
Amara Mining plc (“Amara” or “the Company”)
is a gold developer-producer with assets in
West Africa. The Company generates
significant cash flow through its Kalsaka gold
mine (“Kalsaka”) in Burkina Faso, where the
production profile has been enhanced by the
acquisition in May 2012 of the neighbouring
Sega Gold Project (“Sega”) from Orezone Gold
Corporation (“Orezone”). 
Amara is focused on its objective of becoming
a mid-tier producer through the development
of its Baomahun Gold Project (“Baomahun”) in
Sierra Leone and its Yaoure Gold Project
(“Yaoure”) in Côte d’Ivoire. These projects form
the Company’s near and medium term growth
and will transform Amara into a more
sustainable business. In September 2012
Amara announced a long-term strategic
partnership with Samsung C&T Corporation
(“Samsung”), which begun with an initial
US$20 million facility to strengthen the
Company’s financial position as it develops
Sega and continues its aggressive exploration
campaign. Looking ahead, Samsung offers a
framework for a cornerstone financing in
Baomahun or other development
opportunities, capable of satisfying a significant
portion of the total Baomahun financing needs.
With the management and operational teams’
experience of bringing new mines into
production and a development pipeline
diversified across three countries, Amara is
well-positioned for growth.
The Company changed its name from Cluff
Gold plc on 01 October 2012. It is a UK public
company with its headquarters in London.
Amara is listed on the London Stock
Exchange’s AIM market (AMA) and on the
Toronto Stock Exchange (AMZ). For the
purposes of this document, references to acts,
omissions, operations, results, plans and
intentions of Amara Mining plc shall, as the
context may require, include references to acts,
omissions, operations, results, plans and
intentions of Cluff Gold plc.
Visit our website to find out more information at
www.amaramining.com  Highlights
> Significant investment in our portfolio of assets and 
our team in 2012
> Long-term strategic partnership announced with Samsung,
substantially de-risking the Baomahun project
> Acquisition of Sega project to extend Kalsaka’s mine life
and ensure Amara retains its producer status
> Further strengthening of Amara team at all levels, including
appointment of John McGloin as Executive Chairman 
> Kalsaka gold mine continues to operate profitably
with production of 53,544 ounces
> Strong safety performance – six million man-hours worked 
at Kalsaka to January 2013 with no lost time injury
> Resource update delivered for Baomahun and feasibility
study expected in Q2 2013
> Initial 1.7Moz Inferred resource update delivered for
Yaoure and further resource update expected in H2 2013
> Group EBITDA of US$24.0 million, underpinning Amara’s
growth plans
> Robust financial position with US$36.2 million of cash 
and liquid assets at year end
Company Overview
01
Amara Mining plc Annual Report & Accounts 2012
Our Highlights
Company Overview Business Review Governance Financial Statements
Company Overview
01
01 Our Highlights
02 A Diversified Growth Pipeline
04 The Right People and a 
Strong Partner
06 Respecting our Stakeholders
08 Investing in our Future
10 Chairman’s Statement
12 Chief Executive’s Statement
14 A Year in Review
Financial Statements
48
48 Independent Auditor’s Report
49 Consolidated Statement of
Comprehensive Income
50 Consolidated Statement of 
Financial Position
51 Company Statement of Financial
Position
52 Consolidated Statement of 
Changes in Equity
53 Company Statement of 
Changes in Equity
54 Consolidated Statement of 
Cash Flows
55 Company Statement of Cash Flows
56 Summary of Significant 
Accounting Policies
62 Notes to the Consolidated 
Financial Statements
76 Company Information
IBC References
Governance
34
34 Board of Directors
36 Senior Management
38 Directors’ Report
40 Corporate Governance
42 Prinicipal Risks and Uncertanties
44 Remuneration Report
46 Non-Executive Director Interview
47 Statement of Directors’
Responsibilities
Business Review
16
16 Burkina Faso, Kalsaka/Sega
20 Sierra Leone, Baomahun
24 Côte d’Ivoire, Yaoure,
26 Financial Review
28 Corporate Social Responsibility Company Overview
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Amara Mining plc Annual Report & Accounts 2012
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Sierra Leone
Freetown
Baomahun
Senegal
Gambia
Guinea
L
Guinea-
Bissau
Amara has a portfolio of assets diversified
geographically and at different stages of the
growth pipeline. We recognise the risks inherent
in gold mining and thus have embarked on the
most low risk approach possible to protect 
our shareholders. 
Growth Underpinned 
by Cash Flow
The Kalsaka/Sega mine in Burkina Faso is our
cash engine, the Baomahun gold project in
Sierra Leone provides our near term growth,
the Yaoure gold project in Côte d’Ivoire offers
medium term growth and our exploration
licences in eastern Burkina Faso provide our
longer term, ‘blue sky’ potential.
50% Increase in
Mineral Resources
Following an extensive drilling campaign at
Yaoure in 2011/2012, Amara delivered a 50%
increase in its Group resources in Q1 2013.
Yaoure now has 0.3Moz Indicated resources
and 1.7Moz Inferred resources. This resource 
is derived from just 40% of the total volume
drilled and a further resource update is
expected in H2 2013.
Birimian Greenstone Belt
Archean Greenstone Belt
Group Mineral Resources
Project Category Contained Ounces (koz)
Kalsaka
1
Measured & Indicated 269
Inferred 178
Sega
2
Indicated 450
Inferred 147
Baomahun
3
Indicated 2,242
Inferred 535
Yaoure
4
Indicated 340
Inferred 1,700
1. For a full breakdown of Kalsaka’s reserves and resources, see page 17
2. For a full breakdown of Sega’s resources, see page 17
3. For a full breakdown of Baomahun’s resources, see page 21
4. For a full breakdown of Yaoure’s resources, see page 25 Company Overview
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Amara Mining plc Annual Report & Accounts 2012
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Abidjan
Yaoure
Côte d’Ivoire
Ouagadougou
Kalsaka/Sega
Burkina Faso
Ghana
Togo
Benin
Mali
Liberia
Niger
A Diversified
Growth Pipeline 
Company Overview Business Review Governance Financial Statements Company Overview
04
Amara Mining plc Annual Report & Accounts 2012
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The Right 
People and a
Strong Partner Company Overview
05
Amara Mining plc Annual Report & Accounts 2012
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We believe that people are the most important
part of any business. With John McGloin’s
appointment as Executive Chairman on 28 May
2012, the executive management team’s skillset
was enhanced. The Board and management are
supported by highly experienced operational
teams across our assets.
A Strategic Alliance
On 12 September 2012, we announced a
strategic long-term partnership with Samsung.
The initial US$20 million debt facility, which
does not require recourse to expensive
hedging or royalty financing, will allow Amara
to deliver our growth plans while maximising
returns to shareholders. This partnership
provides a framework for the provision of a
significant proportion of Baomahun’s capex
and other development opportunities and the
delivery of this new form of financing is
testament to the management’s ability to 
think innovatively to benefit shareholders.
Enhancing our Team
John McGloin's background in geology and
the capital markets, Peter Spivey’s experience
in building and operating African mines and
Pete Gardner’s corporate finance knowledge
gives Amara a unique advantage. In 2012
Amara strengthened its operational, exploration
and corporate teams with people whose
previous experience in African gold mining
includes companies such as Randgold
Resources, Teranga Gold Corporation,
Centamin plc, AngloGold Ashanti and 
Gold Fields.
Company Overview Business Review Governance Financial Statements Company Overview
06
Amara Mining plc Annual Report & Accounts 2012
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Amara understands that maintaining our social
licence to operate is central to our culture of
responsible mining and exploration. We are
committed to working with the highest level of
respect for the communities and environments in
which we operate, along with our employees,
while pursuing value for our shareholders. 
Creating a Legacy
We have had a presence in West Africa for
over eight years and we are proud to
contribute to the economic growth of
communities, regions and countries to bring
sustainable socio-economic benefits to the
places where we work. 
US$14.7m Paid in T axes
During the year we paid US$14.7 million in tax
and royalties to the Burkina Faso Government,
plus the indirect taxation we bring to all our
host countries in the form of payroll and other
taxes. We will continue to work with the
relevant authorities in order to ensure we
achieve the optimum long-term structure for
our company and all of our stakeholders
across our host countries. Company Overview
07
Amara Mining plc Annual Report & Accounts 2012
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Respecting our
Stakeholders
Company Overview Business Review Governance Financial Statements Company Overview
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Amara Mining plc Annual Report & Accounts 2012
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Investing
in our Future Company Overview
09
Amara Mining plc Annual Report & Accounts 2012
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In 2012 we invested US$61.5 million across our
portfolio of assets in order to secure our future
growth. We are now well-positioned to deliver
key targets in the months and years to come and
to generate value for our shareholders.
Maintaining a
Sustainable Business
Significant investment was required at this
pivotal stage of Amara’s growth, but we remain
focused on maintaining a sustainable business
model. In 2013 we expect the level of
investment to reduce across our assets as they
enter a more evaluative phase and more cash
will be conserved.
Group EBITDA of
US$24.0m
Unlike our exploration-only peers, Amara’s
growth projects are underpinned by robust
cashflow from our operating mine, Kalsaka. 
In 2012 Amara delivered revenues of 
US$91.3 million from gold production of
53,544 ounces. Due to our unhedged position,
we continued to benefit from the rising gold
price environment and achieved EBITDA of
US$24.0 million. Through the acquisition of the
neighbouring Sega project, production will
continue in Burkina Faso until mid-2015 and
encouraging exploration results are expected
to extend this mine life further. Our producer
status differentiates us from other junior mining
companies and provides a more flexible
business model.
Company Overview Business Review Governance Financial Statements We expect to reap the benefits of this investment by delivering
growth in a robust, sustainable way throughout 2013. This
investment has lowered the risk profile and bolstered the potential
returns from Amara’s pipeline of projects.
We closed the year with US$36.2 million in cash and liquid assets and 
no hedging, including the US$20 million debt facility from our long-term
partner Samsung, which provides us with significant strategic flexibility 
to grow our Company. Although production at Kalsaka was slightly lower
than anticipated at the start of the year (53,544 ounces), the integration
of the Sega project with Kalsaka in mid-2013 is expected to deliver
production growth and to continue to provide us with a robust cash
engine to develop our business in the years ahead.
At our growth assets we completed the resource upgrade at Baomahun
in November 2012 and our feasibility study remains on track for release
in Q2 2013. At Yaoure our exploration programme has defined the
footprint of a large-scale sulphide resource and the on-going infill drilling
programme is expected to further define the recently announced
resource later this year.
Market Outlook
Gold continued to dominate the headlines in 2012, although it did not
reach the record levels experienced in September 2011. The global
macroeconomic backdrop continued to be characterised by weakness,
with the global easing of monetary policy, as well as large fiscal deficits,
pointing to inflation and a depreciating US dollar in the long term. These
conditions have lead to strong demand for gold, which is viewed as a
hedge against inflation and has historically been inversely correlated to
the US dollar. We continue to be positive on the long-term demand
fundamentals for the precious metal as global growth remains subdued
and Governments continue to attempt to revive their economies through
inflation and monetary easing.
Gold’s outperformance in recent years has mirrored to some extent the
rise in other commodities and thus an increase in input costs for the
sector. The result of this has been that margins have been contained, or
in some cases eroded, and the increase in the price of gold has not been
matched by the performance of gold equities. As an industry we have
failed to adequately convey this to investors and governments. This has
led to dissatisfaction from investors regarding returns and concern from
governments that they are not reaping the rewards for their country of a
thriving mining industry. It is our intention as we grow into a mid-tier
producer to show total production costs in addition to the cash costs
commonly quoted by our peers, to provide a greater level of
transparency for investors and governments alike.
It is worth noting that at current levels, our operation provides us 
with solid cash flow to continue growing our resource base through
exploration and allows us the breathing space to position ourselves for
growth. In addition we have established a strong strategic relationship
with Samsung, as we look to de-risk Amara financially and move
towards the next stage of development at Baomahun. We believe that
this is important in light of the current investment sentiment that has put
pressure on mining equities globally and in particular the smaller gold
mining equities with the current sideways trajectory of the gold price,
along with a move away from risk.
Financing Strategies
Given Amara’s ability to generate cash from its existing operations, 
we have no need to raise finance to continue our exploration strategy.
We only reach a financing decision at the point at which we move the
Baomahun development forward. In fact, if were we to stop our
discretionary exploration spend, the Company’s cash balance would
grow, albeit at the expense of Amara’s optionality. 
One of the questions we are asked frequently is how we are planning to
fund the construction of Baomahun given the current challenging market
conditions. Our partnership with Samsung has been significant in de-
risking the project, and I was delighted when Amara’s partnership with
Samsung was recognised at the Mining Journal Outstanding
Achievement Awards in December 2012 as the winner of the
Development Funding Award. However, we are aware that it is important
not to over-leverage ourselves and it is likely that we will need to finance
a portion of the estimated US$200 million capital investment through
other instruments. The market expectation of this event has continued to
weigh on our share price this year.
Fortunately, we are in a position of flexibility and have been exploring
options to minimise long-term equity dilution. In addition to equity we
have a number of options. Unlike Kalsaka/Sega and Yaoure, which are
subject to a 10% free carry for the host government, we own 100% of
Baomahun. Selling a small portion of the project equity to a third party or
bringing in a joint venture partner for the project could form the basis of a
sustainable and non-dilutive financing strategy, with our Yaoure project
continuing to provide a strong growth pipeline. We appointed debt
advisors in H1 2012 to evaluate strategic options, without the need for
gold hedging, and although our alliance with Samsung has been an
important step forwards, they remain focused on this goal.
Investing In Our People
Our ethos at Amara is that a company is only as good as its people. In
2012 we continued to strengthen the management team both in London
and West Africa.
In January 2012 we appointed Richard Quarmby as Group Project
Manager. Prior to joining Amara, Richard worked for Randgold
Resources, where he was instrumental in developing the Morila and
Loulo greenfield projects in Mali into highly successful gold mines. A year
later in January 2013 we were pleased to welcome Bruce van Brunt to
our team as Group Manager of Technical Services and Business
Development. Bruce has more than 30 years’ experience in mine
development and evaluation, most recently with Teranga Gold Corp at its
Sabodala mine in Senegal. Bruce is based in West Africa and will be
working alongside Richard and Peter Spivey to manage the smooth
transition of Baomahun from exploration to construction. He will also be
focused on the integration of Kalsaka and Sega to ensure production
continues uninterrupted.
Company Overview
10
Amara Mining plc Annual Report & Accounts 2012
Chairman’s Statement
John McGloin
Executive Chairman
It is a pleasure to present my first Annual
Report as Executive Chairman and also the
first Annual Report for the newly named
Amara Mining plc. 2012 was a year of
significant investment for our Company
across our assets and our people as we
reached a number of key milestones and
strengthened our team at all levels.  We have also consolidated our exploration team, further strengthening
our technical capabilities. At the end of 2011 Peter Brown joined Amara
as Group Exploration Manager and during the past year he has
appointed Ludie Henning, Hamish Maclaren and Paul Nuttall to manage
the Kalsaka/Sega, Baomahun and Yaoure projects respectively. Between
them, Ludie, Hamish and Paul have over 75 years’ of African exploration
experience, including previous roles with AngloGold Ashanti and 
Gold Fields.
In addition to upgrading our operational expertise, we also expanded our
corporate team. In order to further advance our commitment to promoting
and developing the skillset of our employees, we appointed a Group
Human Resources Manager in June 2012. Gina Scorteanu’s experience
of working in West Africa and her guidance in terms of best practice are
helping to ensure that our people, our Company and our host countries
reap the benefits of a more highly trained workforce. Further initiatives for
employee development will be introduced during 2013.
One of my roles when I joined Amara was to enhance our ability to
communicate with our shareholders and the financial markets in London
and North America. As part of this process, we appointed Katharine
Sutton as Head of Investor Relations in July 2012. She has introduced 
a greater degree of structure to all of our investor activities and in 2013
we will be looking to expand our investor footprint in Europe and Asia, 
as well as in our traditional markets.
Board Changes In Line with Amara’s Growth
As I reported in the 2011 Annual Report in my role as Chairman Elect, in
early 2012 I initiated a thorough review of the Board, its structure and
effectiveness. The Company is at a crucial time in its development and in
order to economically exploit our asset base and to take advantage of
the opportunities that may arise, the skills of our leadership team must
be aligned to this growth path.
It was with pleasure that in May 2012 we welcomed Hennie Faul as a
Non-Executive Director, whose global experience as Group Head of
Mining for Anglo American plc and track record in the African mining
industry adds strong technical expertise to our team. More recently in
March 2013, the Right Honourable Peter Hain MP also joined our Board.
Peter will focus on the corporate social responsibility, community relations
and environmental aspects of our business together with broader African
political relations. He brings valuable experience in African politics,
including three years as Minister of State at the Foreign Office.
I would again like to thank Algy Cluff for his vision in building the
Company, particularly in gathering assets and nurturing a team of people
who are poised to take Amara to the next stage of its development. Algy
resigned as Non-Executive Chairman in May 2012 to pursue an alternate
natural resources venture and I wish him well for the future. Later in the
year, Ronald Winston, Bobby Danchin and Nicholas Berry chose to step-
down as Non-Executive Directors as part of the review. I thank them all
for their good counsel during the Company’s formative years. Today the
Board comprises three Executive Directors and four Non-Executive
Directors, a more appropriate number for a company of Amara’s size.
In Partnership with West Africa
We are committed to working with the highest level of respect for the
communities and environments in which we operate, while pursuing value
for our shareholders. Peter Hain’s appointment to our Board is testament
to this commitment. In particular, Amara has continued to support
initiatives focused on three key areas: education (particularly of women),
healthcare and agriculture. Throughout the year we have continued to
strengthen our existing commitment to corporate social responsibility
across our assets in Burkina Faso, Sierra Leone and Côte d’Ivoire and our
country managers regularly meet with our stakeholders to ensure that our
financial support generates the maximum possible impact.
The Year Ahead
The change of our Company’s name from Cluff Gold to Amara Mining
symbolises the beginning of our transition into a mid-tier gold producer
and 2013 promises to be an exciting year. In 2012 we invested in our
growth and in 2013 we expect to unlock the value as a result of it. 
The transformation of our company from a small-scale junior producer 
to a larger, more sustainable business will continue, as we deliver the
Feasibility Study for Baomahun, integrate the Sega deposit with our
Kalsaka mine, and continue to grow our resources at Yaoure.
We have strengthened our team to deliver a viable economic project at
Baomahun. The work that has been conducted over the last year leaves
me in no doubt that we have a significant high grade gold deposit with a
lower grade halo that will be developed into Sierra Leone’s first open pit
gold mine. There is, I believe, a robust opportunity to extend the mine life
beyond the open pit by targeting thick high grade zones at depth. These
have been identified by wide spaced drilling and are currently
categorised as Inferred resources, not suitable for a Feasibility Study. 
Our intention is to continue exploration as we develop the mine and have
a better understanding of the geology and rock mechanics. This is a low
risk approach and will offer additional upside to our Feasibility Study,
which is on track for delivery in June.
As a geologist by background, I am particularly excited by the
exploration results we have received since the start of 2012 from Yaoure,
and I expect to see this project becoming an increasingly important part
of our portfolio of assets. Extensive drilling was done at the project
during 2012 to identify the footprint of the mineralisation and the
potential quantum of the project before closing down the spacing to
define a resource. While the deposit remains open to the northwest, 
the final phase of drilling last year has allowed us to announce the initial
resource of 0.3 million Indicated ounces (8.0Mt at 1.31g/t) and 1.7 million
Inferred ounces (34.6Mt at 1.52g/t). This Mineral Resource is drawn from
40% of the defined mineralised system. Further drilling in 2013 will allow
us to further define this and to better understand the continuity of the
high grade zones within the system. Very little value is currently attributed
to Yaoure by the market, creating an opportunity for a re-rating of our
stock as we continue to deliver results. I believe that, while of moderate
grade, Yaoure will ultimately be one of the largest gold deposits in Côte
d’Ivoire. Amara remains positive on the outlook for the gold industry and
committed to advancing our position as a responsible and profitable
West African gold producer. 
Finally, I would like to thank my fellow Board members for their hard
work, dedication and valuable guidance throughout the year. It has been
a particular pleasure working alongside my fellow Executive Directors,
Peter Spivey and Pete Gardner, and I am confident that together we can
realise the potential of our assets.
My first year at the helm of Amara has been everything I hoped for and
more. Despite challenging market conditions our Company is now well-
positioned to deliver its next phase of growth. I look forward to updating
you over the course of 2013 as we continue along our path to becoming
a mid-tier producer.
John McGloin
Executive Chairman
26 March 2013
Company Overview
11
Amara Mining plc Annual Report & Accounts 2012
Company Overview Business Review Governance Financial Statements I believe that as we currently stand, Amara offers investors the lowest risk
exposure to growth in the gold industry in West Africa. This has required
significant investment and in 2013 we will start to see the results, as well
as maintaining our focus on a sustainable business model that offers
benefits to all stakeholders; investors, governments and local people.
We are geographically diversified, with assets in three countries across
West Africa. I have lived in the region for seven years and while I believe 
it is one of the best areas in the world to be operating, our strategy is to
ensure we are not overly exposed to any one jurisdiction. We are also
diversified in terms of our growth pipeline, with assets at all stages of
exploration, development and production. Through operating cashflow
from our operation in Burkina Faso we are able to support our exploration
programmes across our assets, which will in turn form our future growth.
In 2013 we will further develop our portfolio approach as our Mineral
Resources at Yaoure grow alongside Kalsaka/Sega and Baomahun.
Amara’s core focus for 2012 was to achieve a number of key milestones
across our asset base in order to deliver on our growth potential in the
short, medium and long term. The Company we are today is very
different from the one I reported on a year ago, with changes to our
leadership, projects, financial outlook and even our name. We have made
good progress along our path of evolution and growth. I strongly believe
we have never been better positioned to deliver on the value of our
assets, which is testament to the hard work of our Board, corporate
team and operational workforce.
Operating and Financial Performance 
The Kalsaka gold mine continued to operate profitably in 2012 despite
the challenges inherent in a mine approaching the end of its life. 
It produced 53,544 ounces of gold at a cash cost (excluding royalties) 
of US$961 per ounce, generating strong EBITDA of US$35.2 million.
The average head grade processed at Kalsaka in 2012 was 15% lower
than in 2011, which contributed to the 25% reduction in gold produced.
Despite this, Amara maintained good control of its operating costs which
increased by 17% in the year, in-line with the falling grade and less than
the fall in total production. As a result, we achieved a healthy pre-tax
cash margin at Kalsaka of US$703 per ounce sold.
Importantly, we continued to build on our strong safety record during the
year, in line with our commitment to ensuring international best practice
for health and safety across all areas of our business. We achieved five
million man-hours worked without a lost time injury at Kalsaka in July
2012 and six million man-hours in January 2013. I’d like to thank all of
our operational team at Kalsaka for their commitment to reaching this
milestone as our goal continues to be for every employee to go home
safe at the end of every shift.
Development and Growth Projects
We invested a record amount in exploration in 2012, with the US$34
million of expenditure signifying a 11-fold increase on our investment
level from three years ago (2009: US$3.0 million). Exploration is the
lifeblood of a mining company and a key element of Amara’s strategy is
to continue to use operating cashflow from Kalsaka/Sega to support our
exploration campaign and thus our future growth. Amara is committed to
maintaining a sustainable business model and in 2013 the total
exploration budget is US$20 million, a significant reduction on 2012, as
our assets enter a more evaluative period. In 2013 Amara will ensure its
investments in exploration and infrastructure more closely align to the
cash in flow from operations.
Company Overview
12
Amara Mining plc Annual Report & Accounts 2012
Chief Executive’s Statement
I began building and operating mines in
Africa 13 years ago and I am very familiar
with the challenges of our industry. As a
result, my priority as Chief Executive over
the past 12 months has been to lower the
risk while maximising the growth potential
of our assets.
We aim to develop the business further in 2013 through 
the following key objectives:
> Achieve production of 50,000-60,000 ounces at Kalsaka/Sega 
in 2013 while maintaining rigorous control on cash costs
> Further progress the development of Baomahun through the
delivery of the Feasibility Study in H1 2013 and the start of
construction in Q4 2013
> Increase our reserves and resources across our assets
> Continue to build on our industry-leading safety record
> Strengthen our relationships with our host countries
> Continue to attract high quality individuals to enhance the Amara
team and help us transform into a mid-tier producer
2012 Achievements
> Amara successfully refocused on a low risk, portfolio approach
> Cashflow generation maintained through Sega acquisition -
production expected to increase in 2013 as a result of higher
grade Sega material
> Board, corporate team and operation team enhanced – right
people in place to take Amara to mid-tier producer status
> Continued to work closely with all stakeholders including host
countries’ governments and local communities
> Industry leading safety record maintained
Peter Spivey
Chief Executive Officer Our exploration team’s primary focus in 2012 was Yaoure, with 29,988
metres drilled in 2012 to advance our exploration of the sulphide
potential at this project. The recently announced Mineral Resource
update from this drilling has significantly increased Amara’s resource
base, with the opportunity for further growth in 2013. In the coming year
we expect to fully realise the value of our investment in 2012 as we
demonstrate the potential scale of the project through the delivery of a
Preliminary Economic Assessment (“PEA”).
Strong progress was made at Baomahun with the delivery of a Mineral
Resource update in November 2012 and I have been delighted by the
subsequent results from our project development team. The on-going
optimisation and scheduling work on the project will soon culminate in
the issuing of a Mineral Reserve statement as the basis of our feasibility
study, which remains on track for completion in Q2 2013.
Following initial promising exploration from the Mamoudouya project in
western Mali, the results from the 2012 drilling campaign were not
significant enough to warrant further investment, so we have chosen to
divest our interest in this project and focus our efforts on exploration
opportunities in our three core countries. We have grassroots exploration
assets in eastern Burkina Faso and we are assessing other early stage
opportunities in Sierra Leone and Côte d’Ivoire in order to maintain our
pipeline of projects in the long term.
Addressing Costs
Containing our cash costs is a key focus for Amara. The continued
strength in fuel prices and other consumables, together with the number
of new projects coming on-stream in Africa, have introduced
considerable cost pressures across our industry. We have particularly
seen this in Burkina Faso, where the price of fuel has increased over
27% from US$1.21 per litre at the start of 2012 to US$1.54 per litre when
we published the results of the PEA for Sega in October. Fortunately, we
are well positioned to absorb this higher cost as our heap leach plant
only requires 1MW of power and the stripping ratio at Kalsaka fell 25%
to 4.97 in 2012. Savings realised in key consumables, such as cement,
also assisted with our overall cost control. Once material from Sega
begins to be processed in mid-2013 we expect our cash costs to reduce
further, despite additional costs associated with trucking, due to the
higher grade material available.
Managing energy costs is on the agenda of every mining company. 
At Amara we are actively addressing the need to decouple our gold
production from the rising long-term oil price. In parts of West Africa
there is a strong opportunity for hydro-electric power (“HEP”) and both of
our growth projects in Sierra Leone and Côte d’Ivoire are located close to
bodies of water that have existing or the potential for low cost HEP .
Using HEP to provide the majority of Baomahun’s power needs is
expected to reduce our cash costs materially, exposing our shareholders
to a rising gold price without seeing margins eroded by escalating fuel
costs. However, we anticipate the Feasibility Study being based on a
heavy fuel oil scenario, demonstrating that even without the benefits of
HEP Baomahun is still highly economic.
In Côte d’Ivoire, our Yaoure exploration project is located 5km from Lake
Kossou, the third largest body of water in West Africa, with a 150MW HEP
facility already in operation and an announced expansion to the country’s
power generation. The implication for Amara is that there is a surplus of
cheap power and electrical reticulation on our doorstep, which will
significantly reduce the capital and operating cost requirements for our
Yaoure project, thereby lowering the economic hurdle for development.
West African Politics
Living in West Africa with my family, I have a thorough understanding of
the need for a company to maintain its social licence to operate. Amara
has an outstanding country manager in each of its three main host
countries and I have been very pleased with the progress they have
made over the past year in engaging with our host governments, regional
authorities and local communities.
Given the prevailing industry backdrop and current level of profitability of
the mining sector we have proactively engaged with the Burkina Faso,
Sierra Leone and Côte d’Ivoire Governments and other stakeholders to
ensure we make a contribution commensurate with the financial
performance of our business. During the year we paid a total of 
US$14.7 million in tax in Burkina Faso including corporate tax, royalties
and indirect taxation. We have also contributed directly to Côte d’Ivoire
and Sierra Leone in respect of indirect taxes paid despite our operations
not yet generating revenue. We will continue to work with the relevant
authorities in order to ensure we achieve the optimum long-term structure
for our company and all of our stakeholders across our host countries.
We have also continued to contribute to community initiatives, and it was
particularly rewarding for me to be involved with a ceremony to present the
keys to two schools in Sierra Leone to the communities near Baomahun.
Outlook
Amara’s aim for 2012 was to progress the development of our growth
assets, while ensuring production continues in Burkina Faso in order to
maintain our cashflow. Both of our growth assets are capable of
sustaining over 100,000 ounces of annual gold production and the
development of these kinds of projects, rather than smaller heap leach
operations, is the key to realising our goal of becoming a mid-tier
producer in the near term.
John McGloin’s appointment has been pivotal to our company, with his
experience as a resource geologist complementing my skills as a mine
developer and the financial skills of Pete Gardner, our Finance Director.
As a result of our continued investment across our assets and our
people at all levels we enter 2013 in good shape, having further
positioned our company for growth.
Finally, I would like to thank all of my colleagues for their enthusiasm,
hard work and commitment throughout what has been a key year in the
growth of our company. I would also like to thank the Board for their
good counsel and support and I now feel strongly that we have the right
team in place to transform Amara into a mid-tier producer. 2013 will be
another important year for our company and we have the people, assets
and robust balance sheet to deliver on our potential.
Peter Spivey
Chief Executive Officer
26 March 2013
Company Overview
13
Amara Mining plc Annual Report & Accounts 2012
Company Overview Business Review Governance Financial Statements Initial Yaoure drilling results
Encouraging results gave confidence
that existing sulphide resources at
Yaoure could be significantly upgraded.
Yaoure became a key component of
Amara’s portfolio of assets with 
US$14 million budgeted for an
aggressive exploration campaign
during the year.
Agricultural project begins its
second year
Amara continued to support Planting
Promise, an agricultural project in
Sierra Leone that teaches farming skills
to local people and uses part of the
agricultural profits to invest in
education initiatives.
Completion of offering 
of US$36.1 million
Amara raised US$36.1 million in order
to bring Sega into production,
accelerate the exploration programme
at Yaoure and strengthen our balance
sheet.
Promoting female education
Amara continued to support a project
to teach women in Burkina Faso how
to raise livestock, with veterinary
trainers and animal food provided.
Five million man hours without injury
In July 2012, the Kalsaka Gold Mine
achieved in excess of five million man
hours without injury, making it an
industry leader in safety practices in
West Africa.
Company Overview
14
Amara Mining plc Annual Report & Accounts 2012
A Year in Review
2012 was a year of investment for Amara
across our assets and our people. We saw
change at all levels, with new leadership
and significant milestones reached across
its asset base, taking Amara further along
its path to becoming a mid-tier producer. In
addition, we continued to support local
community initiatives, particularly focusing
on education, health and agriculture.
January March May
Q2 Q3 Q1
July
Appointment of John McGloin as
Executive Chairman
John’s background in geology and
knowledge of the capital markets
positioned Amara well for the next
stage of its growth, as we develop the
Baomahun and Yaoure projects. Results of Sega PEA
The PEA demonstrated that Sega is a
robust project with a strong internal
rate of return (IRR) of 48%.
Classrooms built in Burkina Faso
The construction of four classrooms for
a school in Kalsaka was completed
and they were immediately brought
into use for local children.
Change of name to 
Amara Mining plc
Cluff Gold plc announced its
rebranding to Amara Mining plc to
mark the beginning of the Company’s
transition into a mid-tier producer.
Further Yaoure drilling results
Results from Yaoure continue to
confirm the potential for a large scale,
moderate grade orebody underlying
the previously mined oxide resources
at Yaoure. The Company begins to
target an Inferred resource update of
one million ounces.
Anti-malaria campaign
Employees at all of our three main
projects were given treated mosquito
nets to combat particularly high levels
of malaria during 2012’s wet season.
Rehabilitation of roads 
in Côte d’Ivoire
Amara completed the rehabilitation of
over 30km of roads near its Yaoure
mine, connecting villages to larger
towns and cities so local people can
sell their crops and provide a source of
income for their families.
Announcement of alliance 
with Samsung
Amara entered a long-term strategic
partnership with Samsung C&T
Corporation. The alliance is the first of
its kind in the mining sector and
demonstrates the management’s ability
to think innovatively to benefit
shareholders.
Company Overview
15
Amara Mining plc Annual Report & Accounts 2012
2013 and beyond...
Amara expects to reach further significant milestones in 2013
including the delivery of the feasibility study for Baomahun. 
The resource update for Yaoure was announced in Q1 2013 and
the trucking of material at Sega is expected to commence in 
Q3 2013. Amara will also continue to be a strong partner to its
stakeholders at local, regional and national level in the countries
in which it operates.
Q4
August September October December
Yaoure potential continues 
to be confirmed
Further holes were reported, bringing
the total reported to 90. The remaining
16 were reported in February 2013 and
all were mineralised, suggesting the
extent of the deposit had not yet been
defined. Following the success of this
drilling campaign, in-fill drilling was
planned for 2013.
Presents for local children
1,000 children in the villages of
Baomahun, Kortuhun and Mongeri in
Sierra Leone were given gifts.
Company Overview Business Review Governance Financial Statements Business Review
16
Amara Mining plc Annual Report & Accounts 2012
Review of Operations
Burkina Faso
The results of the
Preliminary Economic
Assessment for Sega,
which were announced
on 16 October 2012,
confirm the potential
viability of mining oxide
and transitional material
at Sega, located 20km
north of Kalsaka.
2012 Kalsaka EBITDA
$35.2m
2012 production
53, 544oz
Kalsaka/Sega / Burkina Faso
Ouagadougou
Kalsaka/Sega
Burkina Faso Amara’s cash generating asset, the Kalsaka gold mine, continued to
operate profitably in 2012 despite challenging conditions. The mine
produced 53,544 ounces of fine gold and generated US$35.2 million in
EBITDA to support the Company’s exploration activities and general and
administrative costs (G&A), underlining Amara’s strategy of using its
cashflow to fund the development of its growth assets.
Production was impacted by an unusually heavy rainy season in Burkina
Faso, which negatively impacted production in H2 2012. While grades
were forecast to fall at Kalsaka compared to 2011, the average reported
headgrade for 2012 was 1.23g/t, 15% lower than achieved in 2011
(1.45g/t). This was greater than originally anticipated due to the heavy
rainfall causing pit-wall failures and restricting access to high grade
material in the K-zone 1 pit. Consequently, Kalsaka’s operational team
focused on opening lower grade pits, originally scheduled for mining in
H1 2013, in order for production to continue. The lower production was
also impacted by a temporary fall in recovery from the heap during 
Q4 2012 caused by a loss of water pressure in the reticulation circuit.
Increased pumping capacity is being installed during H1 2013 that will
allow all of the gold to eventually be recovered, which is expected to
provide a boost to production in Q2 and Q3 2013.
In an industry-wide environment of cost pressures, Amara maintained
rigorous control of its cash costs, despite the 25% reduction in
production on 2011. The 15% reduction in head grade was offset by a
25% tightening of the strip ratio as the existing Kalsaka pits approached
the end of their minelife, ensuring that the cost per ounce of contained
gold mined rose only 5% in the year. Processing costs rose in part due
to higher staff costs and increased maintenance costs, which off-set
savings in cement realised with a change of supplier. Administration
costs per ounce rose by only 15% despite the 25% fall in production,
reflecting an absolute saving in the costs of running the Kalsaka mine.
A new jaw crusher has been installed and commissioned at Kalsaka,
which will allow the higher grade oversize and transitional ore on the
Kalsaka licence to be processed during H1 2013 and help Amara
achieve its production targets. 
Sega
Maintaining cashflow in Burkina Faso until production is scheduled to
commence at Baomahun in 2015 is a key priority for Amara. 
The Company is committed to upholding its cash generative status,
which lends flexibility to its development plans as it continues to grow its
portfolio of assets. Accordingly, on 24 May 2012 Amara announced the
completion of its acquisition of the Sega Gold Project from 
Orezone Gold Corporation.
The results of the ‘Preliminary Economic Assessment of the Sega Project
in Burkina Faso’ dated 30 November 2012, confirm the potential viability
of mining oxide and transitional material at Sega, located 20km north of
Kalsaka, and transporting it to Amara’s existing heap leach operation at
Kalsaka for processing. It will provide an immediate mine life extension to
Kalsaka to ensure that production continues until H2 2015 as well as
cost benefits derived from the higher grade material at Sega.
The PEA demonstrates that Sega has solid metrics, with a post-tax NPV
of US$49.5 million using a gold price of US$1,500 per ounce and a
discount rate of 10%. Including the initial acquisition costs, this delivers 
a strong internal rate of return of 48%. The upfront capital expenditure
required for the project is limited at US$9.5 million, as the material from
Sega will be trucked to Kalsaka and processed in the existing plant.
Combined with the good existing infrastructure in place, this reduces the
permitting hurdle and diminishes the timeline to production.
Based on the Mineral Resources delineated at Sega to date (450,366
Indicated ounces (8.3Mt at 1.7g/t) and 147,344 Inferred ounces (2.9Mt at
1.6g/t)), the mine plan delivers contained gold of 162,825 ounces over
the 21 month initial mine life and a cash cost per ounce produced,
excluding royalties, of US$821 per ounce. 
The PEA confirmed that Amara will have access to material at Sega 
that is of a higher grade than the remaining reserves at Kalsaka. The
weighted average resource grade of the oxide and transitional material 
at Sega is similar to the Kalsaka reserves. However, the Company’s
geological model shows that the grade of the material processed from 
Production statistics
2012 2011 Change
Ore mined (kt) 1,625 1,899 (14%)
Waste mined (kt) 8,073 12,671 (36%)
Total tonnage mined (kt) 9,698 14,570 (33%)
Strip ratio (w:o) 4.97 6.67 (25%)
Ore processed (kt) 1,558 1,646 (5%)
Average ore head grade (g/t) 1.23 1.45 (15%)
Gold production (oz) 53,544 71,505 (25%)
Cash costs excl. royalties (US$/oz prod) 961 823 17%
Cash costs excl. royalties (US$/oz sold) 964 823 17%
Average realised gold price (US$/oz sold) 1,667 1,569 6%
Pre-tax cash margin (US$/oz sold) 703 746 (6%)
EBITDA (US$m) 35.2 51.9 (32%)
Mineral Reserve and Resource estimate for Kalsaka 
as of 31 December 2012
T onnes Grade Content
Resources at 0.5g/t cut-off (Mt) (g/t) (ounces)
Oxide and Transitional
Measured 0.8 1.3 35,000 
Indicated 4.8 1.1 163,000 
Measured and Indicated 5.6 1.1 198,000 
Inferred 1.6 1.0 54,000 
Sulphide
Measured 0.2 1.4 9,000
Indicated 1.3 1.5 62,000
Measured and Indicated 1.5 1.5 71,000
Inferred 2.8 1.4 124,000
Reserves at 0.5g/t cut-off and US$950/oz gold price
Oxide, Transitional and Stockpile
Proven 0.2 1.5 11,000
Probable 0.6 1.3 27,000
Proven & Probable 0.9 1.4 38,000
Mineral Resource estimate for Sega 
as of 11 January 2010
Tonnes Grade Contained Au
Indicated (‘000t) (g/t) (Ounces)
Ox-LAT Contact 17 1.52 829
Oxide 3,279 1.67 175,630
Transitional 1,594 1.58 81,113
Total Oxide and Transitional 4,890 1.64 257,572
Sulphide 3,399 1.76 192,794
Total Indicated 8,289 1.69 450,366
Tonnes Grade Contained Au
Inferred (‘000t) (g/t) (Ounces)
Ox-LAT Contact 9 1.75 505
Oxide 740 1.50 35,764
Transitional 422 1.47 19,989
Total Oxide and Transitional 1,171 1.49 56,258
Sulphide 1,737 1.63 91,086
Total Inferred 2,908 1.58 147,344
Business Review
17
Amara Mining plc Annual Report & Accounts 2012
Review of Operations
Burkina Faso
Company Overview Business Review Governance Financial Statements Sega will be higher than that at Kalsaka due to the high grade core of 
the mineralisation, which can be selectively mined, reducing cash costs.
The following mined tonnages were estimated to be contained in the
engineered open pit design:
Tonnes of gold bearing material: 2.5Mt
Head grade: 2.0g/t
Ounces: 162,825 contained gold
Tonnes of waste: 17.3Mt
Strip ratio: 6.8:1
Following the general elections in Burkina Faso in December 2012 and
the resultant change of government, the environmental permit for Sega 
is now likely to be received in Q2 2013, slightly later than expected. It is
anticipated that the mining licence will be received shortly afterwards and
we expect that the trucking of material from Sega will commence in mid-
2013. In the event of a delay in the integration of the Sega deposit,
additional ore sources which have been defined at Kalsaka will be
processed. This ore is lower grade than the remaining Kalsaka reserves,
which is the reason for the range of the production guidance of 50-
60,000 ounces for 2013. In the event that this lower grade material is
processed, cash costs for the full year are expected to be similar to 2012.
A full inventory of the key elements now complete at Sega and the work
that is ongoing is as follows:
Item Status
Completed
Acquisition of Sega from Orezone Completed - May 2012
in May 2012 including financing 
of US$10m capex
Preliminary Economic Assessment 
(PEA) Completed - October 2012
On-going
Resettlement Action Plan RAP submitted to Burkina Faso
(“RAP”) process government and public
consultationgovernment and public
consultation expected to begin in
March 2013 with first phase of RAP
implementation beginning
immediately after issue of
environmental permit
Construction of haul road Construction of haul road on Kalsaka
licence has commenced.
Environmental Notice for construction
of road on Sega licence is expected
in April 2013
Environmental permit Environmental Impact Assessment
submitted to government in
December 2012. Permit expected 
to be received in mid Q2 2013
Mining licence PEA submitted to the government 
in December 2012. Mining licence
expected to be received in late 
Q2 2013 after receipt of
environmental permit
Additional crushing circuit and Equipment has been ordered and is
associated infrastructure installed currently en route. Installation cannot
at Sega proceed until environmental permit 
is issued
Post-Receipt of Mining Licence
Mobile mining fleet moved to Sega Early Q3 2013
Trucking of material commences 
from Sega Q3 2013
Sega ounces realised in 
production results Q3 2013
Business Review
18
Amara Mining plc Annual Report & Accounts 2012
Review of Operations
Burkina Faso
Capital expenditure for Sega
$9.5m
Touli resource update
Q2 2013
2012 Exploration Expenditure
$4.0m
Sega mine plan
1 62, 825oz
Kalsaka/Sega / Burkina Faso
Pit Shell
Oxide-Transition
Sulphide
Grades (g/t Au)
0 - 0.35
0.35 - 0.49
0.49 - 0.7
0.7 - 1.5
1.5 - 2.5
2.5+
Sega: High grade mineralised core Exploration
Exploration at the Kalsaka-Sega complex to increase the oxide mine life
is a primary focus for Amara, with US$7.6 million invested in exploration
across the two licence areas in 2012.
At Kalsaka, work focused on areas east of the existing K-zone pits along
the K-zone shear structure at the Zoungwa and Z-R prospects, which
have delivered additional resources for Kalsaka’s 2013 mine plan. Further
near-mine targets are under active evaluation which will ensure flexibility
in the handover to the processing of material from Sega.
In 2012, Amara completed 21,980 metres of RC drilling and 22,544
metres of RAB drilling on the 313km2 Sega licence area. This followed
the 10,000 metre RC drilling programme conducted by Orezone in Q1
2012 prior to the project’s acquisition by Amara. Drilling results received
to date give confidence that there is further upside potential to Sega’s
current resources. This upside potential adds further confidence that
production will continue at the Kalsaka/Sega complex beyond 2015.
Orezone’s drilling campaign covered 11 targets with the most significant
intercepts recorded were at the Touli, Sampella, Bangasilla and KNW
prospects. The Touli prospect and the KNW prospects are in the centre
of the mining licence close to the crushing plant. The Sampella target is
located in the north-east of the Sega licence area at the north-east end
of a regional fold, which appears to control mineralisation. Bangasilla lies
to the west of Sampella. Amara conducted further drilling at each of
these prospects and significant intercepts include:
• 26m at 3.05g/t from 8m at Touli
• 18m at 3.49g/t from 18m at Touli
• 11m at 2.89 g/t from 25m at KNW
• 5m at 3.48g/t from 96m at Sampella
• 4m at 2.07g/t from 99m at Bangasilla
A significant intercept has a minimum width of 2m, a minimum grade 
of 0.4 g/t and a maximum internal dilution interval of 2m. In 2013 drilling
has focused on the Touli prospect and a Mineral Resource estimate is
expected in Q2 2013.
2013 Production Outlook
Amara expects to continue to generate robust cashflow in 2013 and full
year production guidance from Kalsaka/Sega is 50,000-60,000 ounces. 
It is anticipated that gold production will be weighted towards H2 2013
due to the higher grade material that will be processed from Sega. The
cashflow generated from Kalsaka/Sega differentiates Amara from its
exploration-only peers and supports its corporate overheads and on-
going exploration programme. The higher grade material coming on
stream in H2 2013, combined with the Company’s larger ownership of
Sega (90% compared to 78% at Kalsaka), is expected to ensure that
Amara continues to generate robust earnings in 2013 and beyond.
Business Review
19
Amara Mining plc Annual Report & Accounts 2012
Review of Operations
Burkina Faso
Company Overview Business Review Governance Financial Statements Business Review
20
Amara Mining plc Annual Report & Accounts 2012
Review of Operations
Sierra Leone
Sierra Leone
Freetown
Baomahun
Feasibility Study expected
Q2 2013
Resource Update delivered
Q4 2012
Baomahun / Sierra Leone
Amara successfully
moved to a more solid
financial footing through
an innovative deal with
Samsung. The
relationship is expected
to result in the financing
of a significant portion of
Baomahun's capital
expenditure. Amara’s strategy for Baomahun remains focused on the near-term
production opportunity whilst continuing to explore and demonstrate the
long term resource potential for the area. The Baomahun project is
approaching completion of the feasibility stage, with Indicated Mineral
Resources of 2.24Moz (38.4Mt at 1.82g/t) and Inferred Mineral
Resources of 0.54Moz (6.6Mt at 2.52g/t). The Feasibility Study is
expected in Q2 2013, with the project anticipated to commence
construction in Q4 2013 and the first gold pour in H2 2015.
2012 saw a number of transformational events for Baomahun, namely:
• The signing of a strategic alliance with Samsung, which removes 
a significant degree of uncertainty surrounding the financing of 
the project
• The Mineral Resource update following the re-analysis of the
structural controls on the gold mineralisation in the formation 
of the deposit
• The receipt of a new exploration licence in March 2012, Makong
South, which is contiguously north of the existing Victoria exploration
and Baomahun mining licences
Samsung Partnership
In 2012 Amara successfully moved to a more solid financial footing
through an innovative funding deal with Samsung. The partnership will
give Samsung access to a reliable supply of gold bullion, underpinned by
Amara’s strong operational and management team, whilst Amara will
benefit from Samsung’s financial support. The relationship is expected to
result in the financing of a significant proportion of Baomahun’s capital
expenditure, subject to the outcome of the Feasibility Study, together with
an ongoing commitment to jointly assess other opportunities in the region.
The alliance commenced with an initial US$20 million debt facility, which
does not require recourse to expensive hedging or royalty financing. 
It will be used to strengthen the Company’s balance sheet and ensure
Amara remains well funded during the development of Sega and to
continue the ongoing exploration and development work across its asset
portfolio. It maximises returns to Amara’s shareholders and ensures they
are exposed to the upside of an appreciating gold price. The key terms
of the initial US$20 million facility, which was drawn down on 24 October
2012, are as follows:
• Initial term of 22 months, repayable evenly over the final 12 months
from the Sega asset’s cash flow
• Interest payable of 2.5% above US LIBOR
• Amara to sell 1,929 ounces of fine gold per month to Samsung at a
2.25% discount to the London Gold AM/PM LBMA dollar gold fixing
price on the day prior to delivery. There are no hedging requirements
as the price of gold is not fixed in advance in any way under the facility
• Facility secured by a charge over the shares of Amara’s subsidiary
company, Amara Mining (Burkina) Limited, which holds the
Company’s interest in the Kalsaka/ Sega project
The total cost of the facility was estimated at 10% per annum based on the
gold price at execution. Amara’s management remains committed to
expansion while minimising dilution to investors and the delivery of this new
form of financing is testament to its ability to think innovatively to benefit
shareholders. In recognition of this, Amara received the Development
Funding Award at the Mining Journal Outstanding Achievement Awards 
at the Mines & Money conference in December 2012.
Mineral Resource Update
During 2012 the Feasibility Study for Baomahun reached an advanced
stage, with most of the key elements complete. On 19 November 2012,
Amara announced the resource update for the project and the
‘Baomahun Resource Update 43-101 Technical Report’ dated 3 January
2013 was released shortly afterwards. Following an internal review,
Amara commenced a re-analysis of the structural controls on the gold
mineralisation in the formation of Baomahun led by Dr Leslie Wright, an
expert in structural geology with previous knowledge of the licence area.
The work involved the re-logging of core samples in conjunction with
additional structural mapping of the deposit. It confirmed the close
relationship of gold mineralisation with various structural domains and
mylonitised shear zones. This thorough understanding of the structural
controls is vital not only for resource modelling, but also to understand
the potential for additional resources defined in the project area.
The new geological model was prepared with an improved
understanding of the geometry of the resource and grade interpolation
was completed using a local indicator kriging method. This is a more
sophisticated method of mapping the grades into the block model than
the ordinary kriging methodology previously employed, which can have 
a tendency to smooth the grade distribution. It also deals with the high
grade values present in the Baomahun deposit by limiting their sphere 
of influence relative to the lower grade material and allows for a better
definition of high grade shoots. This new model will allow a more realistic
resource schedule and optimised open pit to be prepared for the
Baomahun feasibility study. 
The updated Mineral Resource is largely unchanged from the previous
resource in terms of quantity of ounces, with Indicated resources of
2.24Moz (38.4Mt at 1.82g/t) and Inferred resources of 0.54Moz 
(6.6Mt at 2.52g/t).
Whilst the overall grade of the Mineral Resource is lower than previously
estimated (due to the lower cut-off grade: now 0.5g/t, previously 1g/t),
the high grade core of the mineralisation has been retained with
Indicated Mineral Resources of 1.92Moz (23.0Mt at 2.60g/t) and Inferred
Mineral Resources of 0.52Moz (5.0Mt at 3.25g/t) using the 1g/t cut-off
grade. In addition, a significant number of additional tonnes of material
previously regarded as waste have been interpolated as part of the
updated resource to produce a lower grade ore domain between and
surrounding the previously defined high grade domains. This will have 
a beneficial impact on the eventual strip ratio.
Mineral Resource estimate for Baomahun
1
as of 19 November 2012
T onnes Grade Gold
(Mt) (g/t) (Moz)
Open Pit Indicated 34.9 1.62 1.82
Inferred 3.4 1.15 0.12
Underground Indicated 3.5 3.80 0.43
Inferred 3.2 3.95 0.41
T otal Indicated 38.4 1.82 2.24
Inferred 6.6 2.52 0.54
1. Using a 0.5g/t cut-off within a US$1,600/oz open pit shell and a
2.0g/t cut-off for resources suitable for underground mining
Business Review
21
Amara Mining plc Annual Report & Accounts 2012
Review of Operations
Sierra Leone
Company Overview Business Review Governance Financial Statements Feasibility Study
Work on the Baomahun Feasibility Study is well advanced and is
expected to be completed in Q2. Amara was awarded its environmental
permit for Baomahun in April 2012, which completed the permitting
process for the project. Metallurgical testwork has demonstrated that
Baomahun is a straightforward orebody with good recoveries of over
93% from a conventional CIL plant and no significant impediments to
mine development. The bond work index of the ore is 15.6kWh/t and
does not present an issue for the operation. 
Work for the Feasibility Study is focused on the following:
• Finalising the optimised open pit to define the open pittable reserves
• Optimising the scheduling of the mine to allow the high grade core
to be processed in the early years of production in the currently
envisaged 2Mtpa plant to produce a robust payback
• Finalising the engineering designs and re-validating the capital 
and operating cost estimates
In addition, a number of potential enhancements are being considered 
as follows:
• Evaluating a coarser grind to increase plant throughput and allow
lower grade material to be processed earlier in the mine life without
reducing gold production or pay-back whilst reducing the working
capital requirements for low grade stock-piles
• Crystallising the longer term opportunity for hydro-electric power to
provide a low cost production environment de-coupled from the long
term oil price
The Mineral Resource update also highlighted the significant potential
that lies at depth below the currently envisaged open pit. High grade
shoots are seen to improve with depth and structural work undertaken
suggests that these structures coalesce and could extend to a depth of
at least a kilometre. Amara’s intention is to also investigate the depth
potential of the deposit to evaluate the opportunity to maintain the
production rate once lower grade material is being fed from stockpiles by
blending higher grade ore from underground sources. This will not form
part of the initial Feasibility Study, but will be carried out to the level of a
PEA under the guidance of consultants.
The Company invested US$18.5 million at the project during 2012, 
with US$10.9 million spent on exploration, US$2.1 million spent on the
Feasibility Study and the balance spent on early infrastructure
developments. This infrastructure work included an upgrade to the
existing exploration camp, which will accommodate the construction
team when work begins in Q4 2013, together with an upgrade of the
17km site access road from Mongeri to Baomahun. Exploration
expenditure is expected to reduce in 2013 as Amara focuses on regional
target generation, across all three licences, rather than resource drilling.
Following delivery of the Feasibility Study in Q2 2013 and, subject to
suitable financing, construction is planned to commence at the start of
the dry season in November 2013 with an 18 month construction period.
The first gold pour is targeted for H2 2015 with steady state production
anticipated in 2016.
Business Review
22
Amara Mining plc Annual Report & Accounts 2012
Review of Operations
Sierra Leone
2012 Infrastructure Expenditure
$5.5m
Inferred resources
0.54Moz
Indicated resources
2.24Moz
2012 Exploration Expenditure
$10.9m
Baomahun / Sierra Leone
Drill results in the target area
300m to 900m north of the
resource area have confirmed
the presence of gold A full inventory of the key elements now complete at Baomahun and the
work that is on-going is as follows:
Item Status
Completed
Permitting Environmental Permit received April
2012 – all permits now in place
Infrastructure plans Completed
Detailed engineering design Completed (to Feasibility level)
Resource update Completed – November 2012
Camp upgrade from exploration Interim upgrade completed to
to development enhance camp’s accommodation
capability in advance of full
commencement of construction
Upgrade of road from Baomahun Completed – by-pass road for
to Mongeri Baomahun village to site to be
upgraded at start of 2013 dry season
Ongoing
Mining Engineering
Pit slope optimisation Expected to be completed early Q2
2013. Confirmatory surveys to be
performed in H2 2013 to further
support selection of pit slopes
Detailed pit design Expected to be completed in Q2 2013
Mine schedule Expected to be completed in Q2 2013
Mine capex and opex Expected to be completed in Q2 2013
Infrastructure Design
Water management Expected to be completed 
early Q2 2013
Geotechnical analysis for plant Completed except for some areas
site, waste dump and TSF requiring interpretation in early Q2 2013
Final waste dumps and Expected to be completed by
TSF design mid Q2 2013
Resettlement Action Plan report First draft is complete. Addendum
required to cover some reshuffling of
sites within the project footprint –
expected in H2 2013
Metallurgical Process Plant and 
Related Infrastructure
Metallurgical testwork Testwork to Feasibility level
completed demonstrating gold
recovery in sulphide ore to be 92% at
75μm grind size. Further testwork
campaign underway to investigate
the effect of coarser grind on
recovery allowing increased
throughput – expected to be
completed by end May 2013
Final plant design Expected to be completed by 
mid Q2 2013
Economic Evaluation
Completion of cost estimates Contractor to commence a re-
validation exercise for input into the
Feasibility Study. Expected to
completed in Q2 2013
Compilation of financial models/ Expected to be completed by
cost modelling late Q2 2013
Mineral Reserve Expected to be announced in
April/May 2013
Fiscal Stability Agreement Expected to be delivered in Q2 2013
Feasibility Study Expected to be completed by 
end Q2 2013
Hydro-electric power
Amara has been exploring alternative power options for Baomahun 
in order to de-couple the cost base from the long term oil price.
Management believes that there is significant potential for the
introduction of hydro-electric power within 40km of the mine. With the
majority of the processing costs of a modern CIL plant associated with
power, the availability of HEP could substantially reduce cash costs
compared to a heavy fuel oil (“HFO”) power plant.
In 2011 a Feasibility Study for a 24MW run of river HEP plant was
completed by Knight Piesold in Vancouver. It is estimated that
Baomahun’s continual draw power requirements are approximately
12MW, but due to the impact of the dry season, when the river flow is
reduced, it is expected that HEP would be able to provide approximately
72% of Baomahun’s annual power requirement. Discussions are on-
going with the Sierra Leone government and third party financiers to
establish an independent power producer structure to fully fund the
construction of the HEP plant, with a long term off-take agreement
available for Baomahun. 
The resulting power costs, estimated at between US$0.08/kWh and
US$0.10/kWh, would represent a significant reduction compared to the
current cost of HFO power generation estimated US$0.23/kWh. Amara
would not need to provide equity or debt to finance construction. With a
similar construction period to the mine, it is envisaged that low cost HEP
could be available early in the mine life. However, as the HEP plant has
not yet been constructed, the Feasibility Study will use a HFO scenario
to demonstrate that Baomahun’s economics are strong without the
additional cost benefits of HEP . 
Long term exploration potential along strike
Amara believes that there is significant long term exploration potential
outside the currently defined Mineral Resource area at Baomahun.
Exploration is currently focused on a number of new targets identified
within the Makong South licence, located approximately 15km north of
the existing resource area, together with new target generation along the
entire belt. Sampling of the extensive artisanal workings and new
trenches at Makong South has returned encouraging results, which has
led to the implementation of a more aggressive trenching campaign.
2,300m of trenching has been completed and a further 8,200m is
planned in 2013. Once all the assay data has been returned, this will be
followed up with an initial drilling programme after the cessation of the
wet season in Q4 2013 to enable Amara to obtain a better understanding
of the controls on the mineralisation. The main target consists of a series
of artisanal workings extending in a NNW-SSE direction for 1.9km.
Business Review
23
Amara Mining plc Annual Report & Accounts 2012
Review of Operations
Sierra Leone
Company Overview Business Review Governance Financial Statements Business Review
24
Amara Mining plc Annual Report & Accounts 2012
Review of Operations
Côte d’Ivoire
Abidjan
Yaoure
Côte d’Ivoire
Discovery cost per ounce
$8.0
2012 Exploration Expenditure
$14.0m
Yaoure / Côte d’Ivoire
In addition to Yaoure's
geology, its close
proximity to existing
infrastructure, including
an abundant water
source and a nearby
hydroelectric dam, makes
it one of the best located
gold projects in 
West Africa. Company Overview Business Review Governance Financial Statements
Yaoure is Amara’s medium-term growth asset. 2012 was a year of
significant investment in exploration at the project, which was warranted
by encouraging drill results that continued to underline the potential for a
large scale, moderate grade, sulphide deposit underlying the previously
mined oxide resources.
In Q1 2013, Amara delivered a Mineral Resource update of 0.3 million
Indicated ounces (8.0Mt at 1.31g/t) and 1.7 million Inferred ounces
(34.6Mt at 1.52g/t), representing a significant increase on its previous
Mineral Resources of 0.2 million Measured and Indicated ounces (4.9Mt
at 1.6g/t). This Mineral Resource update is contained within 40% of the
total mineralised volume drilled to date and represents an average
discovery cost of approximately US$8/oz.
Yaoure Strategy
Whilst sulphide mineralisation had been identified earlier in the project’s
life and formed part of Yaoure’s resource base, the Company’s previous
target was to bring an oxide operation into production rapidly, ignoring
the significant sulphide potential. With the oxide operation put on ‘care
and maintenance’ in 2011 following political instability in Côte d’Ivoire
and with the appointment of a Group Exploration Manager, Peter Brown,
in August 2011, Amara refocused its efforts on the project’s sulphide
potential.
Twenty three holes (1,967 metres) were drilled in 2011 and a further 83
holes (29,988 metres) were drilled in 2012. The drilling covered an area
with an across-strike width of 1.1km over both the historic open pits
(Yaoure Central and CMA) and an along strike length of 1.5km. The drill
fence lines have an average space of approximately 160m by 160m,
designed to delineate a large opportunity at Yaoure. The central portion
of the drilling has a higher density and the resource update announced in
Q1 2013 relates to this central area, which covers approximately 40% of
the total mineralised volume drilled.
The Yaoure ore body is a mesothermal, quartz-carbonate vein-style gold
deposit. The mineralisation is controlled by a thick zone of shearing
(imbricate thrusting from the east), resulting in multiple zones of
alteration, quartz veining and gold mineralisation. It is expected that the
thinner, higher grade sub-vertical cross-cutting veins with frequent visible
gold will enhance the overall grade of the orebody, although they were
not the primary target of the drilling programme.
Amara’s exploration expenditure in 2012 was US$34 million of which
US$14 million was spent at Yaoure, reflecting management’s faith that
the project will become an important part of Amara’s portfolio. In addition
to the favourable geology, Yaoure’s close proximity to existing
infrastructure, including an abundant water source and a nearby
hydroelectric dam capable of supplying low cost power, makes it one 
of the best located gold projects in West Africa.
Mineral Resource Update and Further Exploration
Mineral Resource estimate
1
as of 25 March 2013
Indicated Inferred
Cut-Off T onnes Grade Content T onnes Grade Content
g/t Au (Kt) (g/t) (Koz) (Kt) (g/t) (Koz)
0.5 13,580 1.04 450 59,000 1.15 2,200
0.8 8,020 1.31 340 34,600 1.52 1,700
1.0 5,650 1.49 270 24,700 1.78 1,400
1. Using a US$1,500/oz open pit shell and a 0.8g/t cut-off
A total of 31,955 metres were drilled at Yaoure in late 2011 and 2012.
Outside of the areas where an Indicated and Inferred resource has been
defined, drilling has outlined an along-strike and down-dip exploration
target of 2 to 3 million ounces of gold contained within 50Mt to 60Mt of
mineralisation grading 1.3g/t to 1.5g/t. The potential tonnages and grade
are conceptual in nature and are based on drill results that defined the
approximate length, thickness, depth and grade of the deposit. There
has been insufficient exploration to date to define this additional potential
as a Canadian Institute of Mining and Metallurgy and Petroleum -
compliant resource currently and the Company cautions that there is a
risk that further exploration will not result in the delineation of a resource.
A significant portion of the exploration target relates to the continuation
of the higher grade CMA zone, which is expected to increase the overall
grade of the mineralisation if further drill results confirm the continuity
and grade of this mineralisation. 
Following the delineation of this Mineral Resource at Yaoure, Amara has
commenced in-fill diamond drilling at the project to reduce the drill
spacing. This campaign is focused on promoting the mineralisation lying
outside the currently defined Inferred Mineral Resource envelope, which
covers 40% of the total mineralised volume drilled. The Company
expects to announce an updated Mineral Resource in H2 2013.
Future Potential
Alongside the 2011/12 drilling campaign, Amara conducted a
metallurgical testwork programme at Yaoure to understand the leaching
kinetics of the mineralised material. This reported a recovery rate through
a traditional CIL circuit of 94%, confirming the non-refractory nature of
the gold mineralisation. Phase two metallurgical testwork is expected to
be completed by the end of May 2013, which is designed to identify the
optimal processing route. This will include comminution testwork
together with an analysis of the amenability of the ore to heavy medium
separation, gravity and flotation.
In addition, Amara intends to begin assessing the economic potential 
of the updated Mineral Resource through a PEA that is expected to be
completed in Q4 2013. The shallow dipping nature of the Yaoure
mineralisation is expected to have a beneficial impact on the eventual
stripping ratio, whilst Yaoure’s location presents a number of advantages
that will enhance the prospects for a CIL plant to be developed at site.
These include excellent existing infrastructure, such as close proximity 
to the Kossou Barrage which offers the potential for lower operating and
capital costs through the utilisation of hydro-electric power, and an
abundant water supply. In addition, Yaoure benefits from an existing
mining licence and environmental permits, which is expected to reduce
the timeline from exploration to development.
Business Review
25
Amara Mining plc Annual Report & Accounts 2012
Review of Operations
Côte d’Ivoire % Income statement
Group revenue dropped by US$30 million (25%) to US$91.3 million,
compared to US$121.7 million in 2011 due to a 30% fall in production 
in the year from Kalsaka and Yaoure. The average realised gold price
increased by 7% to US$1,667/oz ensuring that the fall in revenue was
restricted. A US$12.7 million reduction in cash operating costs off-set the
revenue loss, resulting in an EBITDA reduction of US$19.6 million to
US$24.0 million. The Group reported a profit before taxation of 
US$8.5 million and a tax charge in Burkina Faso of US$6.1 million. 
This resulted in a profit after taxation of US$2.4 million, which after
accounting for minority interests represents a small loss per share
attributable to equity shareholders.
An exceptional impairment charge of US$4.4 million was recognised in
2012 representing US$1.9 million in Mali and US$2.5 million in Burkina
Faso. The Group’s policy is to capitalise exploration costs pending
determination of the feasibility of a project. In Mali, drilling of the
encouraging geochemical anomaly at Mamoudouya did not generate
results sufficient to warrant further investment and the Group has written
off all costs associated with Mali and closed the regional office. In
Burkina, a wide exploration campaign has been conducted on the
Kalsaka permit since 2010 which did result in a number of additional
areas suitable for mining. Costs directly associated with these areas were
transferred to mining assets in 2012 with the remaining costs written-off.
Excluding the exceptional exploration write-off, the adjusted profit before
tax totals US$12.9 million whilst the earnings per share represents a
small profit of 2.56 US cents attributable to equity shareholders.
Kalsaka
At Kalsaka, production fell by 25% to 53,544oz due to a 15% fall in
average grade combined with a 5% fall in stacking rates and a temporary
increase in recoverable gold in the heap due to low water pressures in the
processing circuit during Q4. Kalsaka’s revenue fell by US$24.8 million,
whilst the EBITDA reduction was limited to US$16.7 million due to a
reduction in operating costs reflecting a lower strip ratio, savings in the
total administrative costs, and a tight control of all costs in the year.
Cash costs at Kalsaka totalled US$961/oz in 2012, a 17% increase
compared to US$823/oz in 2011 which primarily reflects the lower grade
of material processed. On a cash basis, the operating margin at Kalsaka
fell 6% to US$703/oz gold sold, generating EBITDA totalling 
US$35.2 million in the year.
Cash costs are only part of the total cost of producing gold, with
significant up-front and sustaining capital expenditure, taxation and
turnover royalties payable in addition to cash costs. The use of “all in”
costs to explain the returns generated from gold miners to both investors
and government is important, and as Amara transitions to a mid-tier
producer it aims to ensure that its calculation of “all-in” costs are
standardised and given equal prominence to cash costs in its reporting.
At this time Amara’s “all in” costs for Kalsaka have been calculated to
include capital expenditure, royalties and corporate taxes. No corporate
overheads have been attributed due to the nature of the Group’s
activities, which are dominated by development assets. In addition, no
amount has been included in respect of exploration in the year as this will
be recorded against “all in” costs once the defined resources are mined
and processed. On this basis, total “all in” costs for Kalsaka in 2012 were
US$1,327/oz compared to US$1,181/oz in 2011, producing an after tax
margin of US$342/oz in 2012 compared to US$405/oz in 2011.
In total, US$14.7 million of taxation was paid to the Burkina government
in 2012 (2011: US$16.6 million) covering all forms of taxation. 
Financial Highlights
US$’000 2012 2011 2010
Revenue 91,320 121,684 115,804
Gross profit 32,424 46,978 21,628
EBITDA 23,980 43,544 22,626
Exceptional items 
(impairment of exploration costs) (4,374) - (519)
Profit/(loss) before taxation 8,527 25,376 (976)
Basic EPS (cents per share) (0.22) 9.40 (4.92)
Adjusted EPS excl. exceptional items 
(cents per share) 2.56 9.40 (4.50)
Cash generated from/(used in) 
operating activities 23,540 41,104 23,444
Net cash inflow/(outflow) 2,905 7,998 18,634
Total cash 31,810 28,905 20,907
Total assets 201,032 140,698 122,001
Total liabilities (43,712) (28,535) (24,995)
Business Review
26
Amara Mining plc Annual Report & Accounts 2012
Financial Review
Pete Gardner
Finance Director
Despite operational challenges at Kalsaka,
2012 has been a robust financial year with
strong cash in-flows from operations and
the income statement showing a small
profit after tax including exceptional items. The 2009-2011 tax inspection applied a 500% penalty on approximately
US$0.3 million of misapplied withholding tax primarily relating to 2009, the
penalty on which is being contested but has been provided for in full. 
In addition, a further US$6.8 million of taxation including penalties has
been claimed by the Burkinabe tax authorities. This amount is being
contested and has not been provided on the basis that the Directors
consider the majority of the claim to be factually incorrect and not binding.
This is disclosed in the financial statements as a contingent liability.
Yaoure
At Yaoure, the old Angovia heap leach operation was discontinued in
2012, with production of 1,381oz in the year compared to 6,470oz in
2011. The decision to cease operations at Yaoure and focus efforts on
exploration has been supported by the substantial increase in resources
recently announced. As a result of the decision to discontinue heap leach
activities, revenue at Yaoure fell US$7.6 million, costs fell by US$6.2 million
and EBITDA losses increased by US$1.4 million compared to 2011.
During the year provisions against VAT recoverable in Côte d’Ivoire
totalling US$1.5 million have been reversed following amounts received
in Yaoure Mining SA and acknowledgment of repayment due for Cluff
Gold (WA) Côte d’Ivoire SARL.
An on-going dispute with the previous mining contractor at the Yaoure
project has not yet been resolved, and a contingent liability is noted in
the accounts. The terms of the underlying contract clearly state that the
rates set out therein apply regardless of the difficulty of performing the
works and accordingly the Directors have provided for a settlement of
US$1 million out of a total claim of US$22.9 million.
Cash flow and liquidity
A summary of the movement of cash and debt is set out below:
US$ million Cash Debt Net Cash
At 1 January 2012 28.9 - 28.9
Net cash generated by operating activities 23.5 - 23.5
Burkina Faso corporation tax paid (9.0) - (9.0)
Dividend to Kalsaka minority shareholders (4.1) - (4.1)
Exploration expenditure* (36.0) - (36.0)
Property, plant and equipment 
(excluding Sega) (9.3) - (9.3)
Acquisition of Sega from Orezone (16.2) - (16.2)
Equity fundraise (net of issue costs) 34.6 - 34.6
Samsung debt facility (net of issue costs) 19.4 (20.0) (0.6)
At 31 December 2012 31.8 (20.0) 11.8
Bullion held at 31 December 2012 4.4 - 4.4
Total cash and liquid assets 36.2 (20.0) 16.2
*exploration and Feasibility Study expenditure
In 2012 Amara invested heavily in its assets: acquiring the Sega property
from Orezone for US$16.2 million, investing in infrastructure and
equipment totalling US$8.3 million and investing in exploration and
Feasibility Studies totalling US$36.0 million. A further analysis of this
investment in the year is set out below.
This level of investment is 140% higher than in 2011 and represents a 12
fold increase compared to 2009. Amara chose to invest significantly in its
assets in 2012 in order to create flexibility within its portfolio. However, this
level of investment outstrips the cash generative capacity of the Group
and, accordingly, additional finance was raised in 2012 in the form of both
debt and equity. In 2013 Amara will ensure its investments in exploration
and infrastructure more closely align to the cash inflow from operations. 
In addition to the acquisition of Sega, which will not recur in 2013, it is
expected that exploration expenditure at all assets will reduce in 2013 and
further infrastructure development will only be undertaken at Baomahun
once suitable financing for the project development has been raised.
Details of the US$61.5 million investment programme in 2012 
is set out below:
US$ million Baomahun Yaoure Kalsaka Sega Mali London T otal
Exploration 10.9 13.9 4.0 3.6 1.5 - 33.9
Feasibility studies 2.1----- 2.1
Infrastructure 5.5----- 5.5
Sustaining capex - 0.3 3.3 - - 0.2 3.8
Asset acquisition - - - 16.2 1.5 - 16.2
18.5 14.2 7.3 19.8 1.5 0.2 61.5
This investment has delivered Mineral Resource updates at Baomahun 
in Q4 2012 and at Yaoure in Q1 2013, furthered the Feasibility Study at
Baomahun and prepared the site infrastructure for the upcoming
construction phase and extended the mine life at Kalsaka/Sega by an
initial two years with further exploration targets identified for the future.
Pete Gardner
Finance Director
26 March 2013
The 2012 corporate tax charge in Burkina totalled US$6.1 million, an effective tax charge of approximately 30% on the pre-tax profit recorded in
country under the principals of IFRS. The high effective tax rate, compared to the 17.5% headline rate for mining companies in Burkina Faso, 
is due to a number of issues:
Issue Amount (US$m) % of profit before tax Details
2009 – 2011 0.8 4 A recent tax inspection found that withholding tax was not accounted 
for correctly on certain invoices. The gross value of the underlying
invoices have been disallowed for corporation tax purposes and a further
penalty applied such that a US$0.8 million corporation tax liability has
been claimed.
Depreciation rates 0.6 3 Capital allowances in Burkina Faso are lower than depreciation on a unit
of production basis and no deferred tax asset can be recognised.
Disallowed expenses 0.2 1 Includes expenses disallowed for tax in country and other short-term 
timing differences.
Dividend withholding tax 0.9 4 Dividend withholding tax is considered a tax on profit rather than 
an operating cost.
Business Review
27
Amara Mining plc Annual Report & Accounts 2012
Company Overview Business Review Governance Financial Statements Our goal is to achieve a socially responsible business that balances
economic prosperity with environmental stewardship and ethical business
practice. T aking this approach allows Amara to ensure that a positive and
sustainable legacy is left beyond the lives of our mining operations.
Our Approach
Amara has had a presence in West Africa for over eight years and we are
proud to contribute to the economic growth of communities, regions and
countries to bring sustainable socio-economic benefits to the places
where we work. Our corporate social responsibility (“CSR”) programme
has four key pillars, which are as follows:
• The safety and wellbeing of our employees
• The development of our employees
• Environmental responsibility
• Stakeholder relations at local, regional and national levels 
We understand that maintaining our social licence to operate is central 
to our culture of responsible mining and exploration.
During the year we paid US$14.7 million in tax and royalties to the
Burkina Faso Government, plus the indirect taxation we bring to all our
host countries in the form of payroll and other taxes. We will continue to
work with the relevant authorities in order to ensure we achieve the
optimum long-term structure for our company and all of our stakeholders
across our host countries.
Health and Safety
Amara is committed to the highest standards of safety at each of its
operations. A comprehensive safety system is in place at the
Kalsaka/Sega mine, in accordance with OHSAS 18001: 2007, and a
safety performance indicator been incorporated within the bonus
scheme at Kalsaka to reinforce the importance of safe working practices
to all staff. 
It is our philosophy that safety is the responsibility of each individual,
focusing on the need for each employee to practise a high level of safety in
the workplace. All employees are required to undertake safety training prior
to commencing work, with on-going safety training conducted throughout.
At Kalsaka, we are proud to report that in January 2013 we achieved six
million man-hours without a lost time injury (five million hours was
achieved in July 2012). This significant achievement is the result of our
employees and contractors taking personal ownership for their safety and
the safety of their colleagues. It demonstrates the benefits reaped through
Amara’s disciplined approach to implementing strict safety standards.
Development of our Employees
Contributing to Economic Advancement
Amara believes that the most important part of any company is its
people. Our activities provide direct and indirect employment, training
and work experience to many West Africans, as well as creating an
immediate revenue stream for the local economies, regions and
Governments. At the end of 2012, more than 95% of Amara’s employees
at its operations were West African. When construction starts at the
Baomahun gold project in Sierra Leone (expected in H2 2015) the
number of employees and contractors is anticipated to increase
significantly. Amara is committed to providing new employment
opportunities and assisting the economic development of Burkina Faso,
Sierra Leone and Côte d’Ivoire. 
Training and Development
The training and development of our teams across our assets, in our
offices in West Africa and in our head office in London is an on-going
programme.
One example of this is an employee in Burkina Faso who was sponsored
to attend the University of Ouagadougou to pursue a Masters’ degree in
Occupational Health, Safety and Environment. Two other employees
were sponsored to attend the School of Mines in Ghana to obtain
certificates in the fundamentals of metallurgy. They now work as 
process plant supervisors at the Kalsaka gold mine.
Environmental Responsibility
Amara is dedicated to minimising the environmental impact of our
operations to the reasonable practical level. We educate our employees
in sustainable business practices and we conduct our business in
accordance with recognised industry standards and applicable
environmental laws and regulations.
Energy, water, greenhouse gases, biodiversity and land are the main
environmental areas affected by our operations. We use a number of
metrics to measure our environmental impact across these areas. As part
of overall environmental controls, we also monitor our management
processes for handling and disposing of waste and hazardous materials
used at our operations.
We assess our environmental performance through several tools
including visual inspection, auditing, data collection, inventories,
measurements and systematic observations. We use the results to
implement corrective measures and as inspiration for ways we can
improve our performance in the future.
In 2012, we are proud to report that we did not have any significant
environmental incidents.
Materials
Amara uses ore and process materials such as consumables and
reagents to extract gold and produce gold doré at our Kalsaka/Sega
mine. All chemical solutions used in the process plant at Kalsaka are
recycled through the barren solution pond closed circuit heap leach
spray system. Key consumables used are diesel fuel, explosives,
lubricants and oils, cement, sodium cyanide, sodium hydroxide and
hydrochloric acid. At the Baomahun and Yaoure gold projects we use
diesel fuel, lubricants and oils in order to operate the drilling rigs.
Our environmental management systems include processes to manage
all consumables and as a minimum, we import, transport, store, use and
dispose of residues of such material according to local regulations.
Business Review
28
Amara Mining plc Annual Report & Accounts 2012
Corporate Social Responsibility Statement Business Review
29
Amara Mining plc Annual Report & Accounts 2012
Amara is committed to working with the
highest level of respect for the communities
and environments in which we operate,
along with our employees, while pursuing
value for our shareholders.
Company Overview Business Review Governance Financial Statements
Man-hours worked without a
lost-time injury
6m
Environmental incidents
0
Percentage of employees
who are West African
>95%
Burkina Faso tax and
royalties paid in 2012
$14. 7m Business Review
30
Amara Mining plc Annual Report & Accounts 2012
Corporate Social Responsibility Statement
Women in Burkina Faso
taught literacy skills
65
Scholarships awarded in
Sierra Leone
8
Tonnes of maize donated to
Kalsaka village
10
Schools built in Burkina Faso
and Sierra Leone
2 Water
The following water sources are used at each of our operations:
• Kalsaka/Sega (producing mine) in Burkina Faso – water is supplied
via a 20km pipeline from the nearby Kanazoe dam
• Baomahun (development project) in Sierra Leone – potential sources
include a river catchment storage dam, river catchment and artesian
water from underground aquifers
• Yaoure (advanced exploration project) in Mali – water is sourced from
the Kossou Barrage, the third largest body of water in West Africa,
which is 5km from site
Water is very important to a mining operation and is mainly used for ore
processing, dust suppression and rock blasting. Amara used approximately
471,207 cubic metres of water in 2012 at its Kalsaka/Sega mine,
representing a 15% decrease on 2011. In 2011 Burkina Faso experienced
the lowest levels of rainfall for the past five years, whereas the 2012 wet
season was unusually heavy. Amara took advantage of this opportunity to
reuse water by harvesting rainwater for use in its mining activities, thereby
reducing the amount of water drawn from the Kanazoe dam.
We actively pursue water conservation opportunities and through an
internal recycling technique, we optimise the use of water.
Energy
In the near term, we are committed to reducing our dependency on fossil
fuels, which has the duel advantage of benefiting the environment and
decoupling our gold production from the rising long term oil price and
thus growing our margins. The opportunity for hydro-electric power
(“HEP”) exists at both of our growth projects, which has the potential to
reduce harmful emissions and lower our costs from 30-35 cents/kWh
(which we are currently paying at Kalsaka/Sega) to approximately 5-10
cents/kWh.
A 150MW HEP facility already exists 5km from Yaoure at the Kossou
Barrage and when the Angovia oxide mine was in production, we were
paying 5 cents/kWh. This would offer low operating costs and an
environmentally friendly form of energy. At Baomahun, Amara has
commissioned a feasibility study for a run-of-river HEP facility 40km from
the project. Due to the seasonality of the rainfall in Sierra Leone it would
provide 72% of the mine’s power, with the remainder from heavy fuel oil.
Although the feasibility study is being prepared on a heavy fuel oil
scenario, the construction period for the HEP facility is 18 months, similar
to the construction period for the mine, potentially offering low cost,
green energy from early in Baomahun’s minelife.
Currently Amara obtains its energy to power the Kalsaka/Sega mine from
diesel fuel oil. Direct energy produced and consumed at Kalsaka/Sega
includes fuel to run mobile equipment, to produce power and heat onsite
and for explosives used to mine ore. In 2012, Amara consumed 74
million litres of diesel at Kalsaka/Sega, which represents a 4% decrease
on 2011. Kalsaka/Sega is a heap leach operation and the plant itself
requires only a 1MW of energy to power it, significantly less than a
carbon-in-leach plant. The fuel needed to power the mining fleet at
Kalsaka/Sega represents the largest consumption of diesel fuel oil.
Emissions, effluents and wastes
We monitor emissions, effluents and waste generated by our operations.
Programmes are in place to manage dust (TSP , soluble and insoluble
particles), hazardous and non-hazardous non-process waste, waste rock
and tailings. We segregate, recycle and reuse our waste to the maximum
practical level. Material that cannot be recycled is disposed of in a
manner that is environmentally sound. We maintain an inventory of all
types of waste through the waste register book, their quantities and the
method of management and disposal as part of our waste management
programme.
Biodiversity
Protecting the wildlife unique to the areas in which we operate through
minimising the negative impact of our operations is of high importance 
to Amara. Biodiversity conservation principles are applied to all of our
activities and they were integrated into the project design at
Kalsaka/Sega from the outset. Similar principles will be applied to our
projects in Sierra Leone and Côte d’Ivoire. During 2012, there were no
incidents involving wildlife. 
Stakeholder Relations
Amara takes a long term view in matters relating to local communities
and our stakeholders at both regional and national level. We want to
ensure a sustainable legacy continues beyond the lives of our operations
and we have appointed country managers in each of our host countries
to ensure our support is given to the most beneficial initiatives. 
We recognise that we have a responsibility to enhance the communities
in which we operate and we see maintaining our social licence as a 
key priority.
The Company’s CSR mandate states that our community initiatives
across West Africa have three key focuses:
• Education
• Healthcare
• Agriculture
Burkina Faso
Education and support for local women continued to be key focuses 
for Amara in 2012, accounting for nearly 60% of our annual community
expenditure in Burkina Faso. 
We built four classrooms for the high school in Kalsaka village and they
are now used by more than 200 students from the local area. At the
primary school level, Amara built a school in nearby Ouilao and two
houses for teachers. This is the first purpose-built school in the village
and it is expected to improve the quality of education received by the
local children. Previously they were educated in a house that was not
able to withstand heavy rains, meaning that during the wet season they
could not attend lessons.
The advancement of women is at the heart of Amara’s efforts in Burkina
Faso and in 2012 we maintained our support for a literacy programme
for women across multiple villages. 65 women were taught to read and
write in the local language, Moore, improving their potential to work and
earn money for their families. In addition, Amara continued to fund a
programme for women to be trained in farming techniques. In 2012, 35
women learnt how to run sheep and goat fattening businesses, which is
one of the main ways local people can generate income in the region. 
To help the women to apply the knowledge they’ve learnt, we provided
two sheep at the end of the course to each participant.
Amara also contributed US$20,000 (10 million CFA) to support the efforts
of young people from local communities who have chosen to become
cattle farmers and stop artisanal mining activities. This project has a dual
impact as it prevents young people from working in dangerous
conditions and provides them with seed money to create income for the
local economy. We also donated 10 tonnes of maize to Kalsaka village in
order to combat the grain shortage experienced during 2012, which was
received positively by local authorities.
Business Review
31
Amara Mining plc Annual Report & Accounts 2012
Corporate Social Responsibility Statement
Company Overview Business Review Governance Financial Statements In line with Amara’s stated CSR aims, health was the other focus for our
initiatives. Amara funded research on HIV/AIDs and STDs by the
University of Ouagadougou. This is the first study funded by a mining
company in Burkina Faso and it symbolises our commitment to
upholding the health of our employees and local people. The results of
the study will be used by Burkina Faso’s Department of Occupational
Health and Safety and also by Kalsaka’s healthcare team. Amara was
also the proud sponsor of an annual campaign to raise awareness of
HIV/AIDs in Kalsaka village, which has received strong support from local
and regional bodies.
Sierra Leone
In Sierra Leone in 2012, Amara’s community initiatives continued to focus
on benefiting future generations through education and agricultural
programmes. A school was built in Kortunhun village and three additional
classrooms were built for the school in Baomahun village. The scholarship
programme, which commenced in 2011, was continued in 2012 with 125
students in the Bo District receiving secondary school scholarships. 
A university scholarship was also awarded, along with seven
scholarships for Sierra Leonean students to pursue their Master of
Mining Engineering degrees in Ghana. These students were selected by
a panel comprising of representatives from the Office of the Chief of
Staff, the Ministry of Education, the Ministry of Mineral Resources, the
Parliament as well as a representative from Amara. It is anticipated that
Amara will employ these students in Sierra Leone upon their graduation.
By creating a newly skilled generation of Sierra Leoneans, Amara is
creating a workforce to fuel the country’s growing economy and build 
a legacy of mining knowledge and work experience.
Amara also continued to support agricultural programmes in 2012
through the introduction of our Eco-Livelihood Project, which gives local
people tools and seeds to plant crops. In addition, the Planting Promise
programme entered its second year. Planting Promise is a community
agricultural project dedicated to the development of education, whereby
the farms owned by the organisation employ local families who grow and
harvest crops. This income is then used to fund the construction and
maintenance of local schools, giving families the chance to work towards
their own futures.
Healthcare was another priority for Amara in Sierra Leone as the
unusually heavy rainy season led to particularly high levels of malaria in
2012. In order to protect its employees, Amara issued treated mosquito
nets to all staff across its operations. We also contributed to local health
efforts by erecting a temporary shelter in Baomahun village for cholera
patients and supplied anti-cholera medication. To mark World AIDS Day,
we supported an awareness campaign and distributed condoms.
Côte d’Ivoire
In early 2011 Côte d’Ivoire experienced a political crisis and during the
period of instability that followed, Amara’s planned community initiatives
were put on hold. As peace was gradually restored and exploration
activity at Yaoure accelerated, Amara began to resume its plans 
during 2012.
As a result of the political crisis, the state of the country’s roads and
other infrastructure worsened due to the lack of government investment
and maintenance. Therefore, Amara dedicated its 2012 CSR programme
to rehabilitating roads and building schools and housing.
Amara rehabilitated over 30km of local roads, which had been rendered
inaccessible, thereby providing access for local people to larger towns
and cities where they can sell their crops and earn an income for their
families. This also allowed a wider range of services to be provided to 
the villages, fostering higher standards of living for local people, and
rendering Angovia village a regional hub.
We also built three classrooms for a local school and three houses for
primary school teachers. These new facilities will improve the working
and living conditions for the teachers and allow access to education for 
a greater number of local children.
Amara’s country manager in Côte d’Ivoire continued to meet with local
people, regional authorities and the government throughout the crisis
period and regular meetings have continued during 2012 as Yaoure’s
focus changed from oxide production to sulphide exploration.
Business Review
32
Amara Mining plc Annual Report & Accounts 2012
Corporate Social Responsibility Statement Business Review
33
Amara Mining plc Annual Report & Accounts 2012
Corporate Social Responsibility Statement
Company Overview Business Review Governance Financial Statements
Decrease in water used at
Kalsaka compared to 2011
15%
Funding for cattle farming in
Burkina Faso
$20,000
Classrooms built for a school
in Côte d’Ivoire
3
Road rehabilitated 
in Côte d’Ivoire
30km Executive Directors
Governance
34
Amara Mining plc Annual Report & Accounts 2012
Board of Directors
John McGloin
Executive Chairman (age 48)
John McGloin joined Amara on 03 April 2012 as an Executive Director. 
A geologist and graduate of Camborne School of Mines, he worked for
many years in Africa within the mining industry before moving into
consultancy. John joined Arbuthnot Banking Group following 4 years at
Evolution Securities as their mining analyst. Over the years, he has acted
for many mining companies including African Platinum, Randgold
Resources, Avocet Mining, European Goldfields and Titanium Resources
Group. John's most recent position was Head of Mining at Collins
Stewart which he held from July 2010 to the time he joined 
Amara Mining.
Peter Spivey
Chief Executive Officer (age 54)
Peter Spivey joined Amara in January 2010 and was appointed to the
Board in June 2010. He is an experienced mine developer and operator
with nearly 30 years’ experience. Prior to joining Amara Mining, he was
the Chief Operating Officer of Mineral Deposits Limited, where he was
responsible for developing the Sabodala Gold Mine. Prior to Mineral
Deposits Limited, Peter was responsible for Placer Dome’s North Mara
Project in Tanzania, where he was responsible for the late-staged
development and commissioning of the project. Having held a number of
other senior positions in Tanzania, Senegal, Indonesia and Australia since
1998, he has had extensive experience in these regions. Peter is based
in West Africa, where he splits his time between the Company’s 
three projects.
Pete Gardner
Finance Director (age 40)
Pete Gardner joined Amara on 01 October 2009. Previously Chief
Finance Officer for Alexander Mining plc and Corporate Finance
Manager at PKF (UK) LLP , he is a qualified Chartered Accountant with a
breadth of experience in financial management and corporate finance in
the natural resources sector. Since joining Amara, Pete has implemented
a number of improvements to the financial reporting systems and
procedures. Based in the London office, he travels to West Africa 
when required.
John McGloin
Executive Chairman 
Pete Gardner
Finance Director
Peter Spivey
Chief Executive Officer Governance
35
Amara Mining plc Annual Report & Accounts 2012
Non-Executive Directors
Geoff Stanley
Non-Executive Director (age 55)
A Fellow of the AusIMM and SEG, Geoff Stanley joined Amara in
October 2008. He has 26 years of international experience in the
minerals industry. He has worked in exploration in Australia and as a 
gold analyst with a number of securities firms before moving to New York
where he worked for S.G. Warburg J.B. Were Ltd and BMO Capital
Markets. Geoff is a Director of Crescent Gold Limited, Riverfield Capital
Limited, Indo Gold Limited and Bannerman Resources Limited.
Hendrik Faul
Non-Executive Director (age 50)
Hendrik Faul joined Amara in May 2012. As the current Group Head of
Mining at Anglo American, Hendrik brings over 20 years of experience in
surface and underground mining, processing, logistics and marketing,
both in Africa and across the world. He has previously held several senior
roles in the mining industry, including having served as Chief Executive
Officer for Anglo American’s zinc operations and General Manager for the
Lisheen Mine in the Republic of Ireland, during which time he also served
on the boards of various non-listed Anglo American subsidiaries in South
Africa, Namibia, and Ireland. Hendrik is a Non-Executive Director of
Palabora Mining Company, and holds a Bachelor of Mining Engineering
from the University of Pretoria and a South African Mine Manager's
Certificate for metalliferous mines. He is an Associate Member of the
South African Institute of Mining and Metallurgy, and is registered with 
the South African Council for Project and Construction Management
Professionals as a professional construction project manager.
Peter Cowley
Non-Executive Director (age 65)
Peter Cowley joined Amara in January 2008. He is a geologist with 40
years of international experience in the minerals industry and has been
involved in the discovery and development of a number of gold mines in
Africa. Peter is also President and CEO of Loncor Resources Inc and a
Director of Banro Corporation and was previously Managing Director of
Ashanti Exploration Limited and Group Technical Director of Cluff
Resources plc. He holds M.Sc and M.B.A. degrees and is a Fellow 
of I.M.M.M.
Peter Hain
Non-Executive Director (age 63)
The Right Honourable Peter Hain MP joined Amara in March 2013. 
He brings over 22 years of international experience to the Company,
including a great depth of expertise and understanding of Africa and
African politics through his role as Minister of State at the Foreign Office
from 1999 to 2002. During his time at the Foreign Office, when he was
responsible for African affairs, Mr Hain worked closely with the Sierra
Leone government and was involved in a number of key initiatives and
negotiations to bring stability to the country and facilitate a strong
working relationship with the UK. Peter began his political career in 1991
when he was elected as the Labour MP for the Neath constituency in
South Wales, a traditional mining area. He was a member of the Labour
government between 1997-2008 and 2009-2010, serving in the
Department of Trade and Industry, as Minister for Energy (including
Mining) and the Wales Office, as well as the Foreign Office. He held the
posts of Secretary of State for Wales, Leader of the Commons, Northern
Ireland Secretary and Secretary of State for the Department of Work and
Pensions, before leaving the Labour frontbench in 2012.
Company Overview Business Review Governance Financial Statements
Geoff Stanley
Non-Executive Director
Peter Hain
Non-Executive Director
Peter Cowley
Non-Executive Director
Hendrik Faul
Non-Executive Director Governance
36
Amara Mining plc Annual Report & Accounts 2012
Senior Management Team
Corporate Team
Catherine Apthorpe
Commercial Manager & Company Secretary
Catherine joined Amara in July 2009. Previously Senior Solicitor in the
Corporate Department of Maclay Murray & Spens, LLP , Catherine acted
for a number of advisers, investment banks and companies in the natural
resources sector (including Amara). She qualified as a solicitor in 2004
and holds a BA (Hons) in Anthropology from the University of Durham.
Catherine completed both the Post Graduate Diploma in Law and Legal
Practice Course at the College of Law, Guildford. Her role at Amara
incorporates in-house legal counsel across the Group, all general
commercial matters and company secretarial matters. 
Martin Page
Head of Finance
Martin joined Amara in May 2011. He is a qualified Chartered Accounted
with over 10 years of post-qualification experience. Martin qualified with
a mid-tier firm and spent much of his early career in practice, working in
audit and assurance for Baker Tilly, before moving to a consultancy firm
focused on mining and oil and gas. He is responsible for over-seeing
statutory reporting, fiscal planning and management accounts, managing
both the team in London and the local accounting teams based at the
Group’s operations and reporting directly to the Executive Directors.
Based in London, he travels regularly to West Africa. 
Katharine Sutton
Head of Investor Relations
Katharine joined Amara in July 2012. Previously, she was Head of
Investor Relations at Centamin plc, the Egyptian-focused FTSE 250 gold
producer, where she established the Company’s Investor Relations
function. Prior to that she was an Account Manager at Buchanan for
three years, where she advised a number of FTSE 250 and AIM 100
mining companies on all aspects of financial communications including
M&A, crisis management, IPO and financing. Miss Sutton began her
career as a broadcast journalist at the BBC and she holds a BA(Hons) 
in English Literature from the University of York.
Operational Team
Bruce van Brunt
Group Manager Technical Services and Business Development 
Bruce joined the Company in January 2013. Previously, he was the
Business Development Manager at Teranga Gold Corp and served as a
Member of the Board of Directors for Sabodala Gold Operations. Bruce
has more than 30 years’ experience in mine development and evaluation
in Africa, North and South America and Australia. His experience is
principally in precious metals. He holds a BA in geology from University
of Colorado (1983) and a MSc in mining engineering from University of
Nevada-Reno (1991). He is based in West Africa.
Richard Quarmby
Group Project Manager
Richard was appointed as the Group Project Manager for Amara in
January 2012. He has extensive experience in engineering and mining,
having graduated in 1985 with a degree in Chemical Engineering. Prior to
joining Amara, Richard worked for Randgold Resources, where he was
instrumental in developing the Morila and Loulo greenfield projects in
Mali into highly successful gold mines. He also worked for AXMIN
Limited, where he was responsible for delivering both scoping studies
and feasibility studies. He gained a further MBA qualification in 2005.
Reynolds Anim
General Mine Manager, Kalsaka/Sega Gold Mine
Reynolds is a qualified Metallurgical Engineer with over 25 years’
experience. In April 2007, he joined Amara as Project Metallurgist and
was instrumental in the construction and commissioning of the Angovia
Gold Mine and was subsequently appointed as the Mine Manager.
Reynolds was transferred to the Kalsaka Gold Mine in August 2010 and
he will lead the transition to processing material from Sega in 2013.
Reynolds started his career as a metallurgist with Southern Cross Mining
and has since worked for a number of mining companies including
Ranger Minerals, Cluff Mining and Ashanti Goldfields.  Exploration Team
Peter Brown
Group Exploration Manager
Peter joined Amara in August 2011. Previously, he was the Chief
Geologist at NunaMinerals and served as a Member of the Executive
Board. Peter has more than 25 years’ experience in minerals exploration
and evaluation in Africa, South America, the Middle East and China. His
experience is primarily exploration and evaluation for precious and basic
metals in Archean and proterozoic areas. He holds a BSc in geology from
Dundee University (1972) and a PhD from Southampton University (1988).
He is based in West Africa.
Cisse Amadou
Project Generation Manager
Cisse is a geologist with 20 years of international experience in the
minerals industry. He has been involved in the discovery and development
of a number of gold deposits in West Africa, including Libiri in Niger and
Y ouga in Burkina Faso. Cisse held senior exploration positions in several
companies, including Ashanti Goldfields, Anglogold and Orezone, prior to
joining Amara in July 2008.
Ludie Henning
Kalsaka/Sega Exploration Manager 
Ludie joined Amara in October 2012. He is an experienced mine and
exploration geologist with nearly 26 years of experience in gold and
copper deposits. Prior to joining Amara Mining, he worked in different
geological roles for a series of junior, mid-tier and multi-national mining
companies. These include AngloGold-Ashanti (South Africa, Mali and
Argentina) and Freeport-McMoRan (USA). He also held senior positions
in copper exploration projects in Namibia and Turkey. 
Paul Nuttall
Yaoure Exploration Manager
Paul joined Amara in February 2012 and is an economic geologist with
diverse experience in a wide range of commodities. Prior to joining
Amara Mining he was Geology Manager for Erin Mineral Resources in
Senegal, working on both greenfield and brownfield exploration projects.
Paul has worked on the African continent for more than 25 years in the
exploration and mining of minerals. He is currently based in Kossou, 
Côte d’Ivoire.
Hamish Maclaren
Baomahun Exploration Manager
Hamish joined the company in November 2012. Previously he was Chief
Geologist for Ascension Resources Corporation in Liberia and he has
worked as a Chief Geologist since 2007, with over 25 years’ experience
in mineral exploration. Hamish has worked in South Africa, Namibia,
Ghana, Tanzania, Liberia and Sierra Leone and his experience is primarily
in hydrothermal gold, focusing on the structural controls of this
mineralisation, especially in greenstone belts. He holds a BSc. Honours
degree from the University of KwaZulu-Natal at Pietermaritzburg, South
Africa (1979) and a Masters’ degree from the University of Cape Town,
South Africa (1984).
Country Managers
Alusine Jalloh
Country Manager, Sierra Leone
Alusine joined Amara in August 2010. Prior to this, he had a 20 year
career with Sierra Rutile Mining Company, of which his last appointment
was as the Corporate and Public Liaison Manager. Alusine previously
served as the Sierra Leone Minister of Labour, Energy and Power Supply
in 1996, as well as the Deputy General Manager of West African Holdings
before he joined the United Nations in 2001. Alusine is currently on the
boards of the Sierra Leone Extractive Industries Transparency Initiative
(SL EITI), Sierra Leone Chamber of Mines (formative) and Business
Coalition Against AIDS. 
Moussa Serifou
Country Manager, Côte d'Ivoire 
Moussa joined Amara in October 2011. Prior to this, he held several
management positions at Shell Oil Products Africa. He was also the
General Manager of Cimsahel Energie in Senegal and has held several
management positions at ABB (a leading electrical equipment
manufacturer) including Deputy General Manager for Senegal, Mail,
Guinea and Mauritania. Moussa has a Master’s Degree in Management
(with Honours) from ESSEC Paris, a leading French business school. He
also has an Electronic Engineering Degree (with Honours) from INPHB, 
a prestigious Cote d'Ivoire school. 
Djeneba Nana
Country Manager, Burkina Faso 
Djeneba joined Amara in 1999. A qualified administrator with a Degree 
in Business Administration, she has 18 years' experience in finance and
administration, five of which were spent working for Siemens in Germany.
Djeneba was previously the Administration Manager for Cluff Mining
Burkina before being appointed as Country Manager. Currently, she is
Deputy General Manager of Kalsaka Mining SA. She is also in charge 
of the communication to the Board of the Chamber of Mines and is
Chairperson of the Legislative Committee of the Chamber of Mines 
of Burkina Faso. 
Governance
37
Amara Mining plc Annual Report & Accounts 2012
Senior Management Team
continued
Company Overview Business Review Governance Financial Statements Principal Activities 
Amara is a gold mining and exploration company with assets in 
West Africa. Further information is included in the Chairman’s Statement,
Chief Executive’s Statement, Business Review and Financial Review.
On 01 October 2012 the Company changed its name from Cluff Gold plc
to Amara Mining plc.
Business Review and Future Developments
The Business Review is presented on pages 16 to 33 of this Annual
Report. The Business Review contains certain forward-looking
statements, particularly concerning the anticipated production at the
Kalsaka Gold Mine, the development plans at the Baomahun Gold
Project, exploration results at the Yaoure Gold Project as well as
increases in resources anticipated at the Company’s various projects.
These statements have been made by the Directors in good faith based
on the information available at the time of the approval of the 
Annual Report. 
By their nature, such forward-looking statements involve risks and
uncertainties because they relate to events and depend on
circumstances that will or may occur in the future. Actual results may
differ from those expressed in such statements depending on a variety of
factors such as, inter alia, increased costs, possible variations in mineral
resources, grades or recovery rates, disruption of supplies, failure of
equipment or processes to operate as anticipated, a weaker gold market
and changes in exchange rates.
Key Performance Indicators
The Group’s key performance indicators are monitored on a monthly
basis (and more frequently as required) and reported to the Board of
Directors. They focus on production statistics, resource and reserve
updates and exploration expenditure. These are set out in the 
Business Review.
Results and Dividends
The Group made a consolidated profit after taxation for the year of
US$2.4m (2011: US$17.2 million). The Directors do not recommend 
the payment of a dividend (2011: nil).
Share Capital and Share Options
Details of the share capital of the Company are set out in note 13 to 
the financial statements. Details of share options outstanding at 31
December 2012, together with options granted during the year are 
set out in note 20 to the financial statements.
Directors
The Directors of the Company who held office during the year 
are as follows:
J McGloin (appointed 3 April 2012)
P Spivey
P Gardner
P Cowley
H Faul (appointed 1 May 2012)
G Stanley
N Berry (resigned 30 September 2012)
JG Cluff (resigned 28 May 2012)
R Danchin (resigned 30 September 2012)
T Wadeson (resigned 28 May 2012)
R Winston (resigned 30 September 2012)
On 06 March 2013 Mr P Hain was appointed to the Board as a non-
executive Director.
In compliance with the Company’s articles of association, Mr P Hain will
retire by rotation at the Company’s annual general meeting to be held on
05 June 2013 and, being eligible, will offer himself for re-election. 
During the year, directors’ and officers’ liability insurance was maintained
for the Directors and other officers of the Company as permitted by the
Companies Act 2006.
Details of Director's interests in the share capital of the Company and
outstanding share options are given in the Remuneration Report on
pages 44 to 45.
Substantial Shareholdings
As at 28 February 2013, the Company was aware of the following
holdings of 3 per cent or more in the Company’s issued share capital:
Name Shareholding %
1
Ingalls and Snyder 16,979,355 10.1
J P Morgan Asset Management 14,935,678 8.9
BlackRock Investment Management (UK) 13,344,697 7.9
Libra Advisors LLP 13,324,960 7.9
Mr R Winston 12,440,010 7.4
Orezone Gold Corporation 11,000,000 6.6
Macquarie Bank 8,047,210 4.8
1
Based on 168,113,466 shares issued and outstanding 
as at 28 February 2013.
Governance
38
Amara Mining plc Annual Report & Accounts 2012
Directors’ Report
The Directors present their report and the
audited financial statements for the year
ended 31 December 2012. Creditor Payment Policy
It is the Group;s policy to settle all amounts due to creditors in
accordance with agreed terms and conditions, provided that all trading
terms and conditions have been complied with. The Group's average
creditor payment period at 31 December 2012 was 28 days (2011: 30
days). The Company's average creditor payment period at 
31 December 2012 was 9 days (2011: 16 days).
Financial Instruments
The Group’s exposure to financial risks and its policies in relation to 
the use of financial instruments are explained in note 18 to the 
financial statements.
Donations
During the year the Group made charitable donations in the UK totalling
US$7,696 (2011: US$17,123). Further work carried out under the
Group's corporate social responsibility programme is detailed in the
Corporate Social Responsibility Statement on pages 28 to 33.
Post-Balance Sheet Events
There have been no reportable post-balance sheet events.
Health and Safety
The Group remains committed to the highest standards of health and
safety. Details are provided in the Corporate Social Responsibility
Statement on pages 28 to 33.
Corporate Governance
A report on corporate governance is provided on pages 34 to 36.
Going Concern
After reviewing the Group's operations, financial position and short 
and long term cash flow forecasts, the Directors have a reasonable
expectation that the Group has adequate resources to continue in
operational existence and meet its financial obligations as they fall 
due for the foreseeable future. 
Included in the short and long term cash flow forecasts is income and
expenditure relating to the Sega Gold Project in Burkina Faso, a project
that has yet to be granted a mining licence by the government. 
The Directors are satisfied that whilst there is a risk that the licence may
not be granted, that outcome is considered unlikely and accordingly the
cash flows should be included. However, in the event of the licence not
being granted in a timely manner, or not at all, the Directors are also
satisfied that there is sufficient discretionary expenditure in the forecasts
that could be reduced in order for the Group to meet its financial
obligations as they fall due. Accordingly, the Directors continue to adopt
the going concern basis in the preparation of these financial statements. 
Provision of Information to Auditor
In the case of each of the Directors who are Directors of the Company 
at the date when this report is approved:
• So far as they are individually aware, there is no relevant audit
information which the Company’s auditor is unaware of; and
• They have taken all the steps that they ought to have taken as 
a Director to make themselves aware of any relevant audit
information and to establish that the Company’s auditor is aware 
of that information.
Auditor
The auditors, PKF (UK) LLP , have announced they are merging their
business into BDO LLP . A resolution to appoint BDO LLP will be
proposed at the forthcoming AGM.
Governance
39
Amara Mining plc Annual Report & Accounts 2012
Directors’ Report
Company Overview Business Review Governance Financial Statements The Board acknowledges the importance of the guidelines set out in the
UK Corporate Governance Code and the Quoted Companies Alliance
(QCA) published Corporate Governance Guidelines and complies with
these so far as is appropriate having regard to the size and nature of 
the Company.
The Company has in place appropriate guidance, training and
implementation of procedures to ensure compliance with the 
UK Bribery Act.
Board of Directors and Independence
The Company supports the concept of an effective board leading and
controlling the Company. The Board is responsible for approving
Company policy and strategy. It holds regular board meetings and is
supplied with appropriate and timely information in order to discharge its
duties. Briefing papers are distributed to all Directors in advance of board
meetings and all Directors have access to the advice and services of the
Company Secretary, who is responsible for ensuring that Board
procedures are followed and that applicable rules and regulations are
complied with. The articles of association provide that any Director who
was not appointed or re-appointed at one of the preceding two annual
general meetings will be subject to re-election.
The Board currently comprises seven Directors, three of whom are
executive and hold the key operational positions. The four remaining
non-executives bring a breadth of experience and knowledge to assist
and advise the executive Board members. 
The UK Corporate Governance Code requires that small companies
should have at least two independent non-executive Directors. 
The Board considers all non-executive Directors to be independent.
The Chairman of the Board is J McGloin following his appointment 
on 28 May 2012. 
Board Meetings and Sub-Committees
The full Board met on eight occasions during the period, the attendance
record of the Directors at the full board and other committees during their
period of appointment is shown below:
Full Audit Remuneration
board committee committee
Attendance/
Total meetings during appointment
J McGloin 5/5 n/a n/a
P Spivey 8/8 n/a n/a
P Gardner 8/8 n/a n/a
P Cowley 7/8 3/3 2/2
H Faul 4/4 2/2 n/a
G Stanley 8/8 3/3 2/2
J G Cluff 4/4 n/a n/a
N Berry 4/6 -/2 1/2
R Danchin 5/6 n/a n/a
T Wadeson 2/3 n/a n/a
R Winston 2/6 n/a n/a
The Nomination committee met once during the year.
Following the restructuring of the Board during the year, the Chairman
implemented changes to all Board sub-committees including a full
review of their mandates. The Board has now established appropriately
constituted Audit, Remuneration, Nomination, Health, Safety and
Environment and Technical Committees with formally 
designated responsibilities.
In addition, sub-Board committees have been convened including the
Executive Committee which includes the Group Head of Projects and
Group Head of Exploration and a Corporate Social Responsibility
Committee to be headed by P Hain.
Audit Committee
The Audit Committee is chaired by G Stanley, the other members being
H Faul and P Cowley. The Audit Committee may examine any matters
relating to the financial affairs of the Group and the Group’s audits. 
This includes reviews of the annual financial statements and
announcements, internal control procedures, accounting procedures,
accounting policies, the appointment, independence, objectivity, terms of
reference and fees of the external auditor and other related functions as
the Board may require. The external auditor has direct access to the
members of the Audit Committee, without the presence of the executive
Directors, for independent discussions.
Governance
40
Amara Mining plc Annual Report & Accounts 2012
Directors’ Report
Corporate Governance Remuneration Committee
The Remuneration Committee is chaired by P Cowley, the other
members being H Faul and G Stanley. It determines the terms and
conditions of employment and annual remuneration of the executive
Directors. It takes into consideration external data and comparative third
party remuneration and has access to professional advice outside the
Company. The key policy objectives of the Remuneration Committee in
respect of the Company’s executive Directors and other senior
executives are: (a) to ensure that individuals are fairly rewarded for their
personal contribution to the Company’s overall performance, and (b) to
ensure that due regard is given to the interests of the Company’s
shareholders and to the financial and commercial health of the Company.
Remuneration of executive Directors comprises basic salary,
discretionary bonuses, participation in the Company’s share option
schemes or other equity based remuneration schemes, pension plan
contributions and other benefits. The Company’s remuneration policy
with regard to options and other equity based remuneration schemes is
to maintain an amount of not more than 10 per cent of the issued share
capital in options or other equity incentives for the Company’s
management and employees, which may include the issue of new
options or other equity incentives in line with any new share issues. 
Nominations Committee
The Nominations Committee, which leads the process for Board
appointments and makes recommendations to the Board, is chaired by 
J McGloin, the other members being P Cowley and G Stanley. 
Health, Safety and Environment Committee
The Health, Safety and Environment Committee, which is responsible for
ensuring that the Board responsibly covers these areas, is chaired by 
P Spivey, the other members being P Cowley and H Faul. 
Technical Committee
The Technical Committee is responsible for providing assurance to the
Board as to the operational performance and operating risks of the
Company, with particular regard to those areas where technical
understanding is required. It is chaired by H Faul, the other members
being P Cowley and G Stanley. 
The Company takes all reasonable steps to ensure that the Directors and
relevant employees comply with the provisions of the AIM rules and the
TSX rules relating to dealings in its securities.
Service Contracts
The Chairman, Chief Executive Officer and Finance Director are on
permanent employment contracts with notice periods of one year, one
year and six months respectively. Non-executive Directors have formal
letters of appointment setting out their duties and are three year service
contracts terminable at one month's notice.
Relations with Shareholders
The Company fully values the views of its shareholders and is committed
to maintaining the highest standards of disclosure ensuring that all
investors and potential investors have the same access to high quality,
relevant information in an accessible and timely manner to assist them in
making informed decisions. 
Members of the Board attempt to regularly meet with investors, brokers
and other institutions to inform them of short and long term objectives of
the Group. The AGM also enables both institutional and private investors
to communicate with the Board and are encouraged to ask questions.
The Company operates and updates its website www.amaramining.com
regularly, uploading recent investor presentations, resource information
and financial reports in a timely manner. The Company is assisted in its
public relations strategy by Pelham Bell Pottinger.
Internal Control
The Board is responsible for establishing and maintaining a sound
system of internal control to safeguard shareholders' investment and the
Company's assets. These internal controls are designed to provide
reasonable assurance to users and stakeholders regarding the reliability
of the Group financial statements. Inherent limitations in control systems
mean that only reasonable, and not absolute, assurance can be provided
against material misstatement or loss.
Taking account of the size and nature of the Group, the Board has
implemented processes for identifying and evaluating the key
operational, financial and compliance risks facing the Group. Under the
direction of the Chairman, Chief Executive Officer and Finance Director,
and with guidance from the non-executive Directors, this process
continues to evolve as the Group grows in size. Where weaknesses are
identified appropriate amendments are made to the control systems.
Corporate Social Responsibility
A review of the Group’s corporate and social responsibility values,
objectives and actions is set out in the Corporate Social Responsibility
Statement on pages 28 to 33.
Governance
41
Amara Mining plc Annual Report & Accounts 2012
Directors’ Report
Corporate Governance
Company Overview Business Review Governance Financial Statements Risk
Operational Risks
Risk
Exploration and
development risks
Risk
Reliability of mineral
resources and mineral
reserves
Risk
Contractual risk
Risk
Exposure to gold price
Comment
Mining operations generally involve a high degree of
risk. Unexpected events could result in damage to the
Company’s property or otherwise give rise to financial
liability which could affect the ability of the Company
to continue to operate profitably.
A violation of health and safety laws or regulations
could have a material adverse effect on the
Company’s business due to a requirement to
implement new compliance measures, shut down all
or a portion of a mine, or the loss of the right to mine.
Mining operations have inherent risks and liabilities
associated with environmental laws and regulations,
which are constantly evolving. There may be
unforeseen environmental issues under existing or
updated legislation which could expose the Company
to additional liabilities and have a material adverse
effect on the Company’s operations.
Comment
The success of the Company is dependent on the
discovery and/or acquisition of mineral reserves and
mineral resources and the successful development of
mines therefrom. Significant risk exists within
technical, legal and financial aspects of the
development of mines, which may have an adverse
effect on the Company’s business.
Comment
The Companys stated mineral reserves and resources
are estimates based on a range of assumptions,
including geological, metallurgical and technical
factors; there can be no assurance that the anticipated
tonnages or grades will be achieved.
Comment
The Company has several contractual relations that
could potentially end in dispute and legal settlement
given their complexity - such examples being the
dispute with the mining contractor as disclosed in 
note 22.
Comment
The Group is exposed to commodity price risk as
detailed in note 18 to the financial statements. In
addition, reserve calculations and life-of-mine plans
using significantly lower gold prices could result in
material write downs of the Company’s investments in
mining properties.
Mitigation
The Board has implemented a number of processes
and discussion forums to enable management to
monitor the operational performance of the
Company's production and exploration performance. 
Health and safety and the environment are key
considerations for the Board who have made it a
priority to ensure that good practices are at the core of
the Company's culture. The operational Directors are
regularly reported to on any health and safety
concerns by the mine and country managers to
ensure that the codes of the Company are being
implemented correctly to ensure the safety of the
employees, local communities and the environment.
Mitigation
The Board ensures that there is a regular dialogue with
the Head of Exploration and his team, together with
reviewing the reporting data to focus resources and
expenditure upon key exploration and development
targets.
Mitigation
Amara’s mineral resources and mineral reserves are
prepared either by in-house staff or by third party
consultants who have considerable experience and
are certified by appropriate bodies. Amara’s resources
are presented in accordance with NI 43-101 and the
Canadian Institute of Mining, Metallurgy and 
Petroleum Standards.
A note of the risks associated with ore reserve estimates
is set out within the Critical Accounting Estimates and
Judgements within the accounting policies.
Mitigation
The Company employs the use of contract and
industry experts to ensure that any contract entered
into does not leave the Company exposed to a
potentially onerous outcome.
Mitigation
Amara’s objective is to provide maximum exposure to
the price of gold for its investors. As such, a policy of
not hedging gold has been adopted. The Company
retains its focus on keeping operating costs as low as
possible.
Governance
42
Amara Mining plc Annual Report & Accounts 2012
Directors’ Report
Principal Risks and Uncertainties Risk
Exposure to Cost
Pressures
Risk
Financing risks
Risk
Political risks
Risk
Community Risks
Comment
Amara is exposed, both directly and indirectly, to the
purchase price of diesel, cement and reagents used in
gold production. Amara is also subject to increases in
the market prices for services and equipment (e.g.
mining contractors, drilling, tyres, vehicles, etc.).
Comment
The Company requires substantial funds for
exploration and development of mineral properties.
The Company may also incur major unanticipated
liabilities or expenses. The Company’s access to
capital is largely determined by its ability to compete
for investor support for its projects. There can be no
assurance that the Company will be able to obtain the
necessary financing in a timely manner on acceptable
terms to complete its investment strategy.
Comment
The Company’s activities are subject to various laws
and regulations governing the mining industry.
Although all activities are currently carried out in
material compliance with all applicable rules and
regulations, no assurance can be given that new rules
and regulations will not be enacted or that existing
rules and regulations will not be applied in a manner
which could limit or curtail the Company’s current
activities and development plans and have a material
adverse impact on the Company’s financial position. 
The Company’s activities are focused on West Africa
and the success of the Company will be influenced by
associated legal and political risks. Countries in the
region have experienced political instability and
economic uncertainty in the past. Government policy
in the countries in which the Company operates can
be unpredictable, and the institutions of government
and market economy may be unstable and subject to
rapid change, which may result in a material adverse
effect on the Company’s operations.
The renewal of exploration and exploitation licences is
an area of risk given the countries in which the
Company operates. Whilst the Company has in place
legal titles (and the right to renewal) on the assets in its
portfolio, there remains a risk to the Company that
changes within regimes could put the ownership of
these assets at risk.
The Company is also at risk of taxation reviews that
may change the laws and regulations of the countries
in which it operates or the application thereof; such a
review has taken place recently in Burkina Faso as
disclosed in note 22.
Comment
A failure to adequately engage or manage relations
with local communities and stakeholders could have a
direct impact on the Company’s ability to operate at its
projects.
Mitigation
The Company seeks to minimise its usage of input
materials. Amara seeks to negotiate the best possible
rates for all services and products it receives, taking
into account not only price, but service quality 
and reliability.
Mitigation
The Board regularly review the levels of discretionary
spending on capital items and exploration expenditure
to ensure that there is sufficient headroom should
unexpected liabilities arise or cash flow is reduced
through a decline in the gold price. This includes
regularly updating working capital models, reviewing
actual costs against budget and assessing potential
impacts on future funding requirements and
performance targets.
Mitigation
The Company currently has in place political risk
insurance covering expropriating acts and contingent
currency inconvertibility or exchange transfer embargo
with respect to the Yaoure, Kalsaka and Baomahun
properties.
The Company actively engages the governments and
policy makers to discuss all regulatory developments
applicable to the Company, in particular in relation to
taxation and the mining codes. The Company
continues to have a series of discussions with the
government to resolve outstanding disputes.
Mitigation
In addition to its existing corporate social responsibility
programmes, the Group is implementing a number of
additional initiatives to improve and build on local
community relations, and has increased its social
management capacity.
Governance
43
Amara Mining plc Annual Report & Accounts 2012
Directors’ Report
Principal Risks and Uncertainties
Company Overview Business Review Governance Financial Statements Remuneration policy
The Company’s policy is to ensure that the members of the Board are fairly remunerated with regard to responsibilities undertaken and with reference
to comparable pay levels in the UK and in the mining industry. In addition, the Company has a flexible approach to the awarding of discretionary cash
bonuses and share options to ensure that it is able to attract, motivate and retain Directors (and senior management) of the calibre necessary to ensure
that the Company meets its objectives.
The awarding of salary increases, bonuses and share options to Board members is reviewed and confirmed by the Remuneration Committee following
guidance from the Chairman and Chief Executive Officer.
Total Remuneration of Directors Serving in the Year:
Benefit Aggregate Share based
2012 US$000 Salary Bonus in kind emoluments Pension payment Loss of office Total
J McGloin 
1
268 41 - 309 24 88 - 421
P Spivey 319 174 156 649 30 68 - 747
P Gardner 278 189 3 470 25 74 - 569
P Cowley 66-- 66--- 66
H Faul 
2
41-- 41--- 41
G Stanley 61 - - 61--- 61
Current Directors 1,033 404 159 1,596 79 230 - 1,905
N Berry 
3
40-- 40-- 40 80
JG Cluff 
4
152 240 28 420 15 132 407 974
R Danchin 
3
34-- 34-- 40 74
T Wadeson 
5
20-- 20--- 20
R Winston 
3
36-- 36--- 36
T otal 1,315 644 187 2,146 94 362 487 3,089
Benefit Aggregate Share based
2011 US$000 Salary Bonus in kind emoluments Pension payment Loss of office Tota1
JG Cluff 
4
447 964 29 1,440 45 177 - 1,662
P Spivey 311 40 128 479 26 67 - 572
P Gardner 231 34 3 268 23 83 - 374
N Berry 47 - - 47 - 12 - 59
D Chikohora 
6
14 - 2 16 - 50 - 66
P Cowley 51 - - 51 - 16 - 67
R Danchin 41 - - 41 - 12 - 53
G Stanley 42 - - 42 - 11 - 53
T Wadeson 43 - - 43 - 12 - 55
R Winston 41 - - 41 - 11 - 52
T otal 1,268 1,038 162 2,468 94 451 - 3,013
1
appointed 03 April 2012
2
appointed 01 May 2012
3
resigned 30 September 2012
4
2011 bonus payment made on becoming non-executive Chairman in 2011, 2012 bonus and severance made on resignation on 28 May 2012
5
resigned 28 May 2012
6
resigned 24 February 2011
Governance
44
Amara Mining plc Annual Report & Accounts 2012
Directors’ Report
Remuneration Report Directors’ Shareholdings
The Directors and their beneficial interests in the shares of the Company were as follows:
Ordinary shares of 1p each
At 31 December 2012 At 31 December 2011
J McGloin (appointed 03 April 2012) --
P Spivey 50,000 50,000
P Gardner 41,180 41,180
P Cowley 41,618 33,775
H Faul (appointed 01 May 2012) 7,843 -
G Stanley 29,899 22,056
On 07 January 2013 J McGloin acquired 33,672 and P Gardner acquired a further 27,109 ordinary shares of 1p each. On 28 March 2013 J McGloin
acquired a further 48,494 ordinary shares of 1p each.
As at 31 December 2012 the following Directors held options to subscribe for ordinary shares in the Company: 
Number of Number of
share options share options
Name 31 December 2011 31 December 2010 Exercise price Exercise period
J McGloin 1,680,480 - 62.75p 6 July 2015 - 5 July 2022
P Spivey 300,000 300,000 63.50p 1 January 2013 - 31 December 2020
200,000 200,000 71.75p 5 July 2013 - 4 July 2020
P Gardner 150,000 150,000 69.00p 1 October 2012 - 30 September 2019
350,000 350,000 71.75p 5 July 2013 - 4 July 2020
P Cowley 100,000 100,000 83.00p 5 June 2011 - 4 June 2018
G Stanley 100,000 100,000 28.50p 3 October 2011 - 2 October 2018
On 10 January 2013 J McGloin was granted a further 319,520 options at an exercise price of 59.25p, vesting on 10 January 2016 and expiring on 
9 January 2023. Under the same terms P Spivey and P Gardner were granted a further 1,250,000 share options each. All options granted were under
the unapproved share option scheme. 
Annual General Meeting (“AGM”)
The notice convening the Company’s AGM, to be held on 05 June 2013, is included with the Annual Report. Full details of the resolutions proposed 
at that meeting may be found in the explanatory notes at the end of the notice. The Board unanimously recommends shareholders to vote in favour 
of the resolutions proposed.
By order of the Board
J McGloin
Chairman
26 March 2013
Governance
45
Amara Mining plc Annual Report & Accounts 2012
Directors’ Report
Remuneration Report
Company Overview Business Review Governance Financial Statements Q:
Why did you decide to join Amara?
A:
My reasons were two-fold: firstly, I think Amara has a strong growth
profile and a great team of people, and secondly, Amara offered diversity
to my career. As a small cap, Amara’s business model and style of
operating is quite different to the major resources companies. 
The management’s demonstrated exploration and operating experience
in West Africa will be valuable for me and Anglo American, as will the
experience of financing a company that is largely driven by the market’s
sentiment towards gold rather than supply and demand.
Q:
What skills do you bring to the Amara Board?
A:
I bring over 20 years of experience in surface and underground mining,
processing, logistics and marketing, both in Africa and worldwide. I am
used to working to world class, best practise standards and I can share
these processes and systems with the Amara Board. I bring strong
technical expertise to assist the team as we bring Sega, Baomahun 
and Yaoure into production. 
Q:
What do you see as your role in the Company?
A:
Before I joined Amara, the Board mainly consisted of people with
expertise in geology and the financial markets: I am the only Non-
Executive Director who is a mining engineer. I see my role as not only to
assist on technical matters but also to challenge the Company on good
governance, both from a technical angle and a safety and sustainable
development perspective. This reinforces Amara’s stated intention of
becoming a mid-tier gold producer through operating in a responsible
way to all stakeholders, while safeguarding our shareholders’ interests. 
In addition, to build and operate mines requires the right talent with the
appropriate expertise. I believe I can assist Amara in attracting the right
people through my extensive network of industry contacts.
Q:
Amara’s Board has changed significantly in the last year, with Algy
Cluff, Ronald Winston, Nicholas Berry and Bobby Danchin stepping
down and John McGloin becoming Executive Chairman. Why do
you think these changes were made?
A:
Amara is moving fairly rapidly from being an explorer/developer to a mid-
tier producer. I believe that the Board had to change to reflect this. First it
was slimmed down, to be appropriate for a company of Amara’s size,
and then strengthened by adding further technical expertise and African
political experience.
Q:
How do you think Amara is positioned to become a mid-tier
producer?
A:
We have a solid financial position and a strong portfolio of assets at
Kalsaka/Sega, Yaoure and Baomahun to continue production and to
develop into successful mines. The Board is now also well-positioned,
with a diverse and complimentary skillset, to guide and support the
operational teams, delivering value for our shareholders. 
Governance
46
Amara Mining plc Annual Report & Accounts 2012
Interview
Hendrik Faul, 
Non-Executive Director
Hendrik Faul, Group Head of Mining for
Anglo American plc, talks about why he
joined Amara, what skills he brings to the
Board and how he sees the Company
growing into a mid-tier producer.
“The Board is now well-positioned,
with a diverse and complimentary
skillset, to guide and support the
operational teams, delivering value
for our shareholders.”
Hendrik Faul
Non-Executive Director The Directors are responsible for preparing the Directors’ report and the financial statements in accordance 
with applicable law and regulations. 
Company law requires the Directors to prepare financial statements for each financial year. Under that law the Directors have, as required by the 
AIM Rules of the London Stock Exchange, elected to prepare the Group financial statements in accordance with International Financial Reporting
Standards as adopted by the European Union and have also elected to prepare the parent company financial statements in accordance with those
standards. Under company law the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of
the state of affairs of the Company and the Group and of the profit or loss of the Group for that period. 
In preparing these financial statements the Directors are required to:
• select suitable accounting policies and then apply them consistently;
• make judgments and accounting estimates that are reasonable and prudent;
• state whether the financial statements have been prepared in accordance with IFRSs as adopted by the European Union; and
• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company and the Group
will continue in business.
The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company’s transactions to disclose
with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the
Companies Act 2006. They are also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for
the prevention and detection of fraud and other irregularities. 
The Directors are responsible for the maintenance and integrity of the corporate and financial information included on the Company’s website.
Legislation in the United Kingdom governing the preparation and dissemination of the financial statements and other information included in annual
reports may differ from legislation in other jurisdictions.
Governance
47
Amara Mining plc Annual Report & Accounts 2012
Statement of 
Directors’ Responsibilities
Company Overview Business Review Governance Financial Statements Financial Statements
48
Amara Mining plc Annual Report & Accounts 2012
Independent Auditor’s Report
to the members of Amara Mining plc
We have audited the financial statements of Amara Mining Plc for the
year ended 31 December 2012 which comprise the Consolidated
Statement of Comprehensive Income, the Consolidated and Company
Statements of Financial Position, the Consolidated and Company
Statements of Changes in Equity, the Consolidated and Company
Statements of Cash Flows and the related notes. The financial reporting
framework that has been applied in their preparation is applicable law
and International Financial Reporting Standards (IFRSs) as adopted by
the European Union and, as regards the parent company financial
statements, as applied in accordance with the provisions of the
Companies Act 2006. 
This report is made solely to the Company's members, as a body, in
accordance with Chapter 3 of Part 16 of the Companies Act 2006. 
Our audit work has been undertaken so that we might state to the
Company's members those matters we are required to state to them in
an auditor's report and for no other purpose. To the fullest extent
permitted by law, we do not accept or assume responsibility to anyone
other than the Company and the Company's members as a body, for 
our audit work, for this report, or for the opinions we have formed.
Respective responsibilities of directors and auditor
As explained more fully in the directors’ responsibilities statement, the
directors are responsible for the preparation of the financial statements
and for being satisfied that they give a true and fair view. 
Our responsibility is to audit and express an opinion on the financial
statements in accordance with applicable law and International
Standards on Auditing (UK and Ireland). Those standards require us 
to comply with the Auditing Practices Board's Ethical Standards 
for Auditors.
Scope of the audit of the financial statements
An audit involves obtaining evidence about the amounts and disclosures
in the financial statements sufficient to give reasonable assurance that
the financial statements are free from material misstatement, whether
caused by fraud or error. This includes an assessment of: whether the
accounting policies are appropriate to the Group’s and the parent
company’s circumstances and have been consistently applied and
adequately disclosed; the reasonableness of significant accounting
estimates made by the Directors; and the overall presentation of the
financial statements. In addition, we read all the financial and non-
financial information in the annual report to identify material
inconsistencies with the audited financial statements. If we become
aware of any apparent material misstatements or inconsistencies we
consider the implications for our report.
Opinion on financial statements
In our opinion:
• the financial statements give a true and fair view of the state of the
Group’s and the parent company’s affairs as at 31 December 2012
and of the Group’s profit for the year then ended;
• the Group financial statements have been properly prepared in
accordance with IFRSs as adopted by the European Union;
• the parent company financial statements have been properly
prepared in accordance with IFRSs as adopted by the European
Union as applied in accordance with the provisions of the
Companies Act 2006; and
• the financial statements have been prepared in accordance with 
the requirements of the Companies Act 2006.
Opinion on other matter prescribed by the Companies Act 2006
In our opinion the information given in the Directors’ report for the
financial year for which the financial statements are prepared is
consistent with the financial statements. 
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where 
the Companies Act 2006 requires us to report to you if, in our opinion:
• adequate accounting records have not been kept by the parent
company, or returns adequate for our audit have not been received
from branches not visited by us; or
• the parent company financial statements are not in agreement 
with the accounting records and returns; or
• certain disclosures of Directors’ remuneration specified by law 
are not made; or
• we have not received all the information and explanations 
we require for our audit.
Jason Homewood (Senior statutory auditor)
for and on behalf of PKF (UK) LLP
Statutory auditor
London, UK
26 March 2013  2012 2011
Notes US$000 US$000
Continuing operations
Revenue 91,320 121,684
Cost of sales (58,896) (74,706)
Gross profit 32,424 46,978
General and administrative expenses (9,599) (8,937)
Other operating costs (9,635) (12,543)
Impairment of deferred exploration and evaluation costs 8 (4,374) -
Operating profit 2 8,816 25,498
Finance income 4 208 124
Finance costs 5 (497) (246)
Profit before taxation 8,527 25,376
Income tax 6 (6,080) (8,164)
Profit and total comprehensive income for the year 2,447 17,212
Attributable to:
Equity shareholders of the parent company (351) 12,389
Non-controlling interests 14 2,798 4,823
Profit and total comprehensive income for the year 2,447 17,212
(Loss)/earnings per share
Basic (cents per share) 7 (0.22) 9.40
Diluted (cents per share) 7 (0.22) 9.25
Financial Statements
49
Amara Mining plc Annual Report & Accounts 2012
Consolidated Statement of Comprehensive Income
for the year ended 31 December 2012
Company Overview Business Review Governance Financial Statements 2012 2011
Notes US$000 US$000
Assets
Non-Current Assets
Intangible assets 8 120,113 68,027
Property, plant and equipment 9 24,382 17,453
Other receivables 11 - 1,452
Total non-current assets 144,495 86,932
Current Assets
Inventories 12 18,618 18,275
Other receivables 11 6,109 6,586
Cash and cash equivalents 31,810 28,905
Total current assets 56,537 53,766
Total assets 201,032 140,698
Capital and reserves
Share capital 13 2,951 2,375
Share premium 13 163,241 117,823
Merger reserve 13 15,107 15,107
Share option reserve 13 3,932 3,316
Currency translation reserve 13 987 987
Accumulated losses (31,067) (30,886)
Total equity attributable to the parent 14 155,151 108,722
Non-controlling interests 2,169 3,441
Total equity 157,320 112,163
Non-current liabilities
Provisions 15 9,298 8,578
Deferred tax liability 6 94 305
Borrowings 17 9,828 -
Total non-current liabilities 19,220 8,883
Current liabilities
Trade and other payables 16 12,548 14,705
Corporation tax 2,196 4,947
Borrowings 17 9,748 -
Total current liabilities 24,492 19,652
Total liabilities 43,712 28,535
Total equity and liabilities 201,032 140,698
The financial statements were approved and authorised for issue by the Board of Directors on 26 March 2013 and were signed on its behalf by:
P Gardner
Director
Company number: 4822520
Financial Statements
50
Amara Mining plc Annual Report & Accounts 2012
Consolidated Statement of Financial Position
as at 31 December 2012 2012 2011
Notes US$000 US$000
Assets
Non-Current Assets
Property, plant and equipment 9 220 76
Investments in subsidiaries 10 10,327 10,323
Other receivables 11 107,633 48,546
Total non-current assets 118,180 58,945
Current Assets
Other receivables 11 8,006 8,969
Cash and cash equivalents 26,238 10,674
Total current assets 34,244 19,643
Total assets 152,424 78,588
Capital and reserves
Share capital 13 2,951 2,375
Share premium 13 163,241 117,823
Merger reserve 13 12,607 12,607
Share option reserve 13 3,932 3,316
Currency translation reserve 13 (16,591) (16,591)
Accumulated losses (34,017) (41,450)
Total equity 132,123 78,080
Non-current liabilities
Borrowings 17 9,828 -
Total non-current liabilities 9,828 -
Current liabilities
Trade and other payables 16 725 508
Borrowings 17 9,748 -
Total current liabilities 10,473 508
Total liabilities 20,301 508
Total equity and liabilities 152,424 78,588
The financial statements were approved and authorised for issue by the Board of Directors on 26 March 2013 and were signed on its behalf by:
P Gardner
Director
Company number: 4822520
Financial Statements
51
Amara Mining plc Annual Report & Accounts 2012
Company Statement of Financial Position
as at 31 December 2012
Company Overview Business Review Governance Financial Statements Financial Statements
52
Amara Mining plc Annual Report & Accounts 2012
Consolidated Statement of Changes in Equity
for the year ended 31 December 2012
Attributable to equity shareholders of the parent
Share Currency Non-
Share Share Merger option translation Accumulated controlling T otal
capital premium reserve reserve reserve losses Sub-total interests equity
US$000 US$000 US$000 US$000 US$000 US$000 US$000 US$000 US$000
Balance at 1 January 2011 2,365 117,410 15,107 2,556 987 (43,431) 94,994 2,012 97,006
Profit for the year -----12,38912,389 4,82317,212
Total comprehensive income 
for the year -----12,38912,389 4,82317,212
Issue of ordinary share capital 10 413 ---- 423 - 423
Dividend ------- (3,394) (3,394)
Share option charge - - - 916 - - 916 - 916
Reserve transfer on exercise or 
lapse of share options - - - (156) - 156 - - -
Balance at 31 December 2011 2,375 117,823 15,107 3,316 987 (30,886) 108,722 3,441 112,163
(Loss)/profit for the year ----- (351) (351) 2,798 2,447
Total comprehensive income 
for the year ----- (351) (351) 2,798 2,447
Issue of ordinary share capital 576 47,768 ----48,344 -48,344
Share issue costs - (2,350) ---- (2,350) - (2,350)
Dividend ------- (4,070) (4,070)
Share option charge - - - 786 - - 786 - 786
Reserve transfer on exercise or 
lapse of share options - - - (170) - 170 - - -
Balance at 31 December 2012 2,951 163,241 15,107 3,932 987 (31,067) 155,151 2,169 157,320 Share Cumulative
Share Share Merger option translation Accumulated Total
capital premium reserve reserve reserve losses equity
US$000 US$000 US$000 US$000 US$000 US$000 US$000
Balance at 1 January 2011 2,365 117,410 12,607 2,556 (16,591) (49,270) 69,077
Profit for the year - - - - - 7,664 7,664
Total comprehensive income 
for the year - - - - - 7,664 7,664
Issue of ordinary share capital 10 413 - - - - 423
Share issue costs - - - - - - -
Share option charge - - - 916 - - 916
Reserve transfer on exercise or 
lapse of share options - - - (156) - 156 -
Balance at 31 December 2011 2,375 117,823 12,607 3,316 (16,591) (41,450) 78,080
Profit for the year - - - - - 7,263 7,263
Total comprehensive income 
for the year - - - - - 7,263 7,263
Issue of ordinary share capital 576 47,768 - - - - 48,344
Share issue costs - (2,350) - - - - (2,350)
Share option charge - - - 786 - - 786
Reserve transfer on exercise or 
lapse of share options - - - (170) - 170 -
Balance at 31 December 2012 2,951 163,241 12,607 3,932 (16,591) (34,017) 132,123
Financial Statements
53
Amara Mining plc Annual Report & Accounts 2012
Company Statement of Changes in Equity
for the year ended 31 December 2012
Company Overview Business Review Governance Financial Statements 2012 2011
US$000 US$000
Cash flows from operating activities
Operating profit for the year 8,816 25,498
Depreciation and amortisation 9,825 14,966
Decrease in other receivables 1,515 3,925
Decrease in trade and other payables (1,462) (2,295)
Increase in inventories (1,098) (4,444)
Increase in provisions 720 2,519
Share option charge 786 916
Impairment of deferred exploration and evaluation costs 4,374 -
Loss on disposal of property, plant & equipment 64 19
Net cash flows from operating activities 23,540 41,104
Income taxes paid (9,042) (5,235)
Cash flows used in investing activities
Interest receivable 208 124
Interest payable (328) (24)
Purchase of property, plant and equipment (10,488) (3,598)
Purchase of intangible assets - deferred exploration (35,968) (21,180)
Purchase of intangible assets - mining rights (14,959) -
Net cash flows used in investing activities (61,535) (24,678)
Cash flows from/(used in) financing activities
Proceeds from the issue of share capital 36,955 423
Issue costs paid (2,350) -
Dividend (4,070) (3,394)
Proceeds from borrowings 20,000 -
Issue cost of borrowings (466) -
Net cash flows from/(used in) financing activities 50,069 (2,971)
Net increase in cash and cash equivalents 3,032 8,220
Cash and cash equivalents at start of period 28,905 20,907
Exchange loss on cash and cash equivalents (127) (222)
Cash and cash equivalents at end of year 31,810 28,905
Cash and cash equivalents compromise
Cash at bank 31,810 28,905
Financial Statements
54
Amara Mining plc Annual Report & Accounts 2012
Consolidated Statement of Cash Flows
for the year ended 31 December 2012 2012 2011
US$000 US$000
Cash flows from operating activities
Operating loss for the year (8,968) (4,257)
Depreciation 88 64
(Increase)/decrease in trade and other receivables (91) 95
Increase/(decrease) in trade and other payables 215 (421)
Share option charge 786 916
Impairment of amounts due from subsidiaries 1,941 -
Net cash flows from operating activities (6,029) (3,603)
Cash flows used in investing activities
Interest receivable 63 86
Interest paid (106) (6)
Purchase of property, plant and equipment (232) (45)
Purchase of investments (4) -
Dividend received 12,000 11,294
Amounts remitted from subsidiary undertakings 19,870 10,500
Amounts remitted to subsidiary undertakings (64,261) (21,888)
Net cash flows used in investing activities (32,670) (59)
Cash flows from financing activities
Proceeds from the issue of share capital 36,955 423
Issue costs paid (2,350) -
Proceeds from borrowings 20,000 -
Issue cost of borrowings (466) -
Net cash flows from financing activities 54,139 423
Net increase/(decrease) in cash and cash equivalents 15,440 (3,239)
Cash and cash equivalents at start of period 10,674 14,036
Exchange gain/(loss) on cash and cash equivalents 124 (123)
Cash and cash equivalents at end of year 26,238 10,674
Cash and cash equivalents compromise
Cash at bank 26,238 10,674
Financial Statements
55
Amara Mining plc Annual Report & Accounts 2012
Company Statement of Cash Flows
for the year ended 31 December 2012
Company Overview Business Review Governance Financial Statements Financial Statements
56
Amara Mining plc Annual Report & Accounts 2012
Summary of Significant Accounting Policies
for the year ended 31 December 2012
The principal accounting policies applied in the preparation of these financial statements are set out below. 
These policies have been applied consistently to all the years presented, unless otherwise stated.
Basis of preparation
The consolidated financial statements have been prepared on the historical cost basis in accordance with applicable International Financial Reporting
Standards as adopted by the European Union and with those parts of the UK Companies Act 2006 applicable to companies reporting under IFRS as
adopted by the European Union.
The preparation of financial statements in conformity with IFRS requires management to make judgements, estimates and assumptions that affect the
application of policies and reported amounts in the financial statements. The areas involving a higher degree of judgement or complexity, or areas
where assumptions or estimates are significant to the financial statements are disclosed in the accounting policies below. 
The financial information is presented in US Dollars. Following a review of the primary economic environment in which each Group entity operates, on
1 January 2011 the US Dollar was adopted as the functional currency for Amara Mining plc (the “Company”) Amara Mining (Sierra Leone) Limited and
Cluff Gold (SL) Limited leading to all material entities in the Group using the US Dollar as their functional currency. Consequently, there are no
exchange differences on the translation of subsidiaries and the currency translation reserve will remain frozen as at the 31 December 2010 balance.
On 1 October 2012 the Company changed its name from Cluff Gold plc to Amara Mining plc. In addition, certain subsidiaries changed their names 
as disclosed in note 10.
The Group has chosen to present its financial statements in US Dollars as it is the currency most-relevant to our investors given the nature of the
Group’s activities.
A separate statement of comprehensive income for the parent company has not been presented as permitted by section 408 of the Companies Act
2006. The parent company made a profit of US$7,263,000 (2011: US$7,664,000). 
Nature of business and going concern
The Company is a public limited company incorporated and domiciled in England. The address of the registered office is 4th Floor, 
29-30 Cornhill, London, EC3V 3NF .
The Group is involved in the acquisition, exploration, development and operation of gold mines and deposits in West Africa. 
The Directors regularly review cashflow forecasts to determine whether the Group has sufficient cash reserves to meet future working capital
requirements, progress its exploration projects and take advantage of business opportunities that may arise. The Group manages its treasury function
to ensure that cash is primarily held in politically stable countries. This minimises the risk of political events preventing the Group from continuing to
make payments required for the Group's operations to continue.
Further information regarding the Group's financing arrangements are set out in note 17 and 18 to the financial statements.
The Group’s cashflows from mining operations continue to be cash generative and based on this performance and the forecast cash flows, the
Directors are satisfied that the Group has sufficient cash resources to continue its operations and meet its commitments for the foreseeable future.
Included in the short and long term cash flow forecasts is income and expenditure relating to the Sega Gold Project in Burkina Faso, a project that has
yet to be granted a mining licence by the government. The Directors are satisfied that whilst there is a risk that the licence may not be granted, that
outcome is considered unlikely and accordingly the cash flows should be included. However, in the event of the licence not being granted in a timely
manner, or not at all, the Directors are also satisfied that there is sufficient discretionary expenditure in the forecasts that could be reduced, in order for
the Group to meet its financial obligations as they fall due.
Accordingly the Directors have concluded that it is appropriate for the financial statements to be prepared on a going concern basis.
Adoption of standards effective in 2012
No material changes to accounting policies arose as a result of new standards applied by the Group from 1 January 2012.
Issued IFRS that are not yet effective
Any standards and interpretations that have been issued but are not yet effective, and that are available for early application, have not been applied by
the Group in these financial statements. Application of these Standards and Interpretations was not deemed to be relevant to the financial statements
of the Group except for:
IFRIC 20, “Stripping costs in the production phase of a surface mine”. This interpretation addresses the following issues: recognition of production
stripping costs as an asset; initial measurement of the stripping activity asset; and subsequent measurement of the stripping activity asset. 
This interpretation considers when and how to account for the benefit arising from the stripping activity, as well as how to measure these benefits both
initially and subsequently. The interpretation is effective from 1 January 2013. An initial assessment suggests that the impact of IFRIC 20 is unlikely to
be significant. Financial Statements
57
Amara Mining plc Annual Report & Accounts 2012
Summary of Significant Accounting Policies
for the year ended 31 December 2012
Basis of consolidation
The consolidated financial statements incorporate the financial statements of the Company and enterprises controlled by the Company (its
subsidiaries) made up to 31 December each year. The excess of cost of acquisition over the fair values of the Group’s share of identifiable net assets
acquired is recognised as goodwill. Any excess of the fair value of assets acquired over the cost of acquisition is recognised directly in profit or loss. 
The purchase method of accounting is used to account for the acquisition of subsidiaries by the Group. The cost of an acquisition is measured as the
fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange. Identifiable assets acquired and
liabilities and contingent liabilities assumed in a business combination are initially measured at fair value at acquisition date.
The results of subsidiaries acquired or disposed of during the year are included in the consolidated statement of comprehensive income from the
effective date of acquisition or up to the effective date of disposal, as appropriate.
Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used 
by other members of the Group.
All intra-group transactions, balances, and unrealised gains on transactions between Group companies are eliminated on consolidation. Unrealised
losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Non-controlling interests in subsidiaries are presented separately from the equity attributable to equity owners of the parent company. Non-controlling
shareholders’ interest may initially be measured either at fair value or at the non-controlling interests’ proportionate share of the fair value of the
acquiree’s identifiable net assets. The choice of measurement basis is made on each acquisition individually.
Subsequent to acquisition, the carrying amount of non-controlling interests is the amount of those interests at initial recognition plus the non-
controlling interests’ share of subsequent changes in equity. Total comprehensive income is attributed to non-controlling interests even if this results 
in the non-controlling interests having a deficit balance.
Foreign currencies
Foreign currency transactions and balances
Transactions in currencies other than the functional currency of the appropriate Group company are translated at the rates of exchange prevailing 
on the dates of the transactions. At the date of each statement of financial position, monetary assets and liabilities that are denominated in foreign
currencies are translated to the functional currency at the rates prevailing on the relevant date. Gains and losses arising on translation are included 
in profit or loss for the year.
Translation of foreign operations
On 1 January 2011 the US Dollar was adopted as the functional currency for all material entities in the Group. Consequently, there are no exchange
differences on the translation of subsidiaries and the currency translation reserve will remain frozen as at the 31 December 2010 balance.
Intangible assets
Deferred exploration and evaluation costs
All costs incurred prior to obtaining the legal right to undertake exploration and evaluation activities on a project are written off as incurred.
All costs associated with mineral exploration and investments are capitalised on a project by project basis, pending determination of the feasibility 
of the project. Costs incurred include appropriate technical and administrative expenses. If an exploration project is successful, the related costs will
be transferred to mining assets and amortised over the estimated life of the mineral reserves (as reported in accordance with Canadian National
Instrument 43-101) on a unit of production basis. Where a project is relinquished, abandoned, or is considered to be of no further commercial value 
to the Group, the related costs are written off. 
The recoverability of deferred exploration costs is dependent upon the discovery of economically recoverable ore reserves, the ability of the Group to
obtain necessary financing to complete the development of the ore reserves and future profitable production or proceeds from the disposal thereof.
Mining and exploration licences
The mining licences were originally measured at the fair value of the shares issued to non-controlling interests in return for the legal rights conferred by
the mining licences, based on the net present value of cash flows expected to arise from the related mining operations. Mining licences are amortised
over the estimated life of the mineral reserves on a unit of production basis, or the life of the licence, whichever is shorter.
The exploration rights relate to the fair value of shares issued in 2008 for the acquisition of 40% of the Baomahun project and to the acquisition of the
Sega Gold Project as disclosed in notes 8 and 23. On development of these projects the costs will be transferred to mining assets and amortised over
the estimated life of the mineral reserves on a unit of production basis.
Company Overview Business Review Governance Financial Statements Financial Statements
58
Amara Mining plc Annual Report & Accounts 2012
Summary of Significant Accounting Policies
for the year ended 31 December 2012
Property, plant and equipment
Mining and development costs
Mining and development costs include appropriate deferred exploration and evaluation costs transferred on development of an exploration property.
Before reclassification, such costs are assessed for impairment, with any impairment loss recognised in profit or loss for the year.
All subsequent development costs are capitalised, including all costs incurred during the commissioning of the project that are directly related to that
operation. Any revenues generated during this period are treated as a contribution against those costs and credited against mining and development
costs. At the end of the commissioning phase, when the mine is capable of substantially operating in the manner intended by management,
capitalisation ceases and the mining assets are amortised over the estimated life of the mineral reserves on a unit of production basis. Future forecast
capital expenditure is included in the unit of production depreciation calculation.
Property, plant and equipment
All property, plant and equipment assets are stated at cost less accumulated depreciation
Depreciation is provided to write off the cost, less residual value, using the straight-line method over their estimated useful life of the assets as follows:
• Office equipment, fixtures and fittings 33%
• Computers 33%
• Motor vehicles 33%
Residual values, remaining useful lives and depreciation methods are reviewed annually and adjusted if appropriate.
Gains or losses on disposal are included in profit or loss for the year.
Stripping costs
Stripping costs incurred in order to provide initial access to the ore body are capitalised as mine development costs.
Stripping costs incurred during the production stage of a pit are accounted for as and expense to the income statement during the period that the
stripping costs were incurred, unless these costs provide a future economic benefit. Production phase stripping costs generate a future economic
benefit when the related stripping activity: (i) provides access to ore to be mined in a future period; (ii) increases the fair value of the mine as access 
to future mineral reserves becomes less costly; (iii) increases the productive capacity or extends the productive life of the mine.
Impairment of property, plant and equipment and intangible assets
At each balance sheet date, the Group reviews the carrying amounts of its property, plant and equipment and intangible assets to determine whether
there is any indication that those assets have suffered impairment. Where the asset does not generate cash flows that are independent from other
assets, the Group assesses the cash-generating unit to which the asset belongs for impairment.
Impairment reviews for deferred exploration and evaluation costs are carried out on a project by project basis, with each project representing 
a potential single cash generating unit. An impairment review is undertaken when indicators of impairment arise and typically when one of the 
following circumstances applies:
i. unexpected geological occurrences that render the resource uneconomic; 
ii. title to the asset is compromised; 
iii. variations in metal prices that render the project uneconomic; and 
iv. variations in the currency of operation.
If any indication of impairment exists, the recoverable amount of the asset is estimated, being the higher of fair value less costs to sell and value in use.
In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market
assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted. 
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset 
(or cash generating unit) is reduced to its recoverable amount. Such impairment losses are recognised in profit or loss for the year.
Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of 
its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no
impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised in profit or loss 
for the year. 
Inventories
Inventories comprise gold produced, gold in process, ore stockpiles, consumables and spares and are stated at the lower of cost and net realisable
value. The cost of gold produced, gold in process and ore stockpiles is calculated on a first in first out basis and includes all costs directly incurred 
up to the relevant point of the process such as mining costs and processing costs, but exclude other operating costs such as general mine or
administration costs. Net realisable value is determined with reference to current market prices. Financial Statements
59
Amara Mining plc Annual Report & Accounts 2012
Summary of Significant Accounting Policies
for the year ended 31 December 2012
Financial instruments
Financial assets and financial liabilities are recognised on the Company's and Group’s balance sheet when the Company and Group has become a
party to the contractual provisions of the instrument and are initially measured at fair value, except for financial assets at fair value through profit or
loss, which are initially measured at fair value, excluding transaction costs.
Other receivables
Other receivables do not carry any interest and are stated at their nominal value as reduced by appropriate provisions for irrecoverable amounts. 
Amounts due from subsidiaries are recorded at amortised cost, less provision for impairment.
Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with banks, and other short term highly liquid investments with original
maturities of three months or less.
Investments
Investments in subsidiaries are recorded at cost less provisions for impairment.
Financial liabilities and equity
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument
is any contract that evidences a residual interest in the assets of the Group after deducting all of its liabilities.
Financial liabilities include bank loans and overdrafts which are recognised initially at fair value less attributable transaction costs. Subsequent to initial
recognition, interest-bearing borrowings are stated at amortised cost with any difference between cost and redemption value being recognised in the
statement of comprehensive income over the period of the borrowings on an effective interest basis.
Trade payables
Trade payables are stated at amortised cost using the effective interest method.
Equity instruments
Equity instruments issued by the Company are recorded at the proceeds received, net of direct issue costs. Where equity instruments are issued 
as part of an acquisition they are recorded at their fair value on the date of acquisition.
Borrowings
Interest-bearing borrowings are stated at amortised cost using the effective interest method. The effective interest method is a method of calculating
the amortised cost of a financial liability and of allocating interest expense over the relevant period.
Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalised as part of the cost 
of that asset. Other borrowing costs are expensed in the period in which they are incurred.
Financial assets and liabilities at fair value through profit and loss
Financial assets and liabilities at fair value through profit and loss comprise derivative financial instruments. Subsequent to initial recognition financial
assets at fair value through profit and loss are stated at fair value. Movements in fair values are recognised in profit or loss, unless they relate to
derivatives designated and effective as hedging instruments, in which event, the timing of the recognition in profit or loss depends on the nature of 
the hedging relationship. The Group does not currently have any such hedging instruments.
Provisions
Provisions are recognised when the Group has a present obligation as a result of a past event which it is probable will result in an outflow of economic
benefits that can be reliably estimated.
Provisions for decommissioning and site restoration costs
An obligation to incur decommissioning and site rehabilitation costs occurs when environmental disturbance is caused by the development or on-
going production of a mining property. Costs are estimated on the basis of a formal closure plan and are subject to regular formal review.
Such costs arising from the installation of plant and other site preparation work, discounted to their net present value, are provided and capitalised
within mining and development costs at the start of each project, as soon as the obligation to incur such costs arises. These decommissioning costs
are charged against profits over the life of the mine, through depreciation of the asset and unwinding or amortisation of the discount on the provision.
Depreciation is included in operating costs while the unwinding of the discount is included as financing costs. Changes in the measurement of a
liability relating to the decommissioning of plant or other site preparation work are added to, or deducted from, the cost of the related asset in the
current period. 
The costs for restoration of site damage created on an on-going basis during production are provided for at their net present values and charged
against operating profits as extraction progresses. Changes in the measurement of a liability relating to site damage created during production are
charged against operating profit.
Company Overview Business Review Governance Financial Statements Financial Statements
60
Amara Mining plc Annual Report & Accounts 2012
Summary of Significant Accounting Policies
for the year ended 31 December 2012
Share-based payments
The fair value of equity settled share based payments are measured at grant date using the Black-Scholes model. The fair value is expensed on a
straight-line basis over the vesting period, based on the Group’s estimate of shares that will eventually vest. Details of the inputs to the model are given
in note 19.
Revenue recognition
The Group enters into contracts for the sale of gold. Revenue arising from gold sales under these contracts is recognised when the price is
determinable, the product has been delivered in accordance with the terms of the contract, the significant risks and rewards of ownership have been
transferred to the customer and collection of the sales price is reasonably assured.
Leasing
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. 
All other leases are classified as operating leases. Rentals payable under operating leases are charged to profit or loss on a straight-line basis over the
term of the relevant lease. Benefits received and receivable as an incentive to enter into an operating lease are also spread on a straight line basis over
the lease term.
T axation
The tax expense for the period comprises current and deferred tax. Tax is recognised in the income statement, except to the extent that it relates to
items recognised in other comprehensive income or directly in equity. In this case the tax is also recognised in other comprehensive income or directly
in equity, respectively.
Deferred tax is provided using the liability method on temporary differences at the balance sheet date between the tax bases of assets and liabilities
and their carrying amounts for financial reporting purposes. Deferred tax is determined using tax rates enacted or substantively enacted at the balance
sheet date and are expected to apply when the related deferred tax liability is settled. Deferred tax assets are recognised only to the extent that it is
probable that future taxable profits will be available against which the temporary differences can be utilised.
Deferred tax liabilities are recognised for all taxable temporary differences, except in respect of taxable temporary differences associated with
investments in subsidiaries where the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary
differences will not reverse in the foreseeable future.
Unrecognised deferred tax assets are reassessed at each balance sheet date and are recognised to the extent that it has become probable that future
taxable profit will allow the deferred tax asset to be recovered.
Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set off current income tax assets against current income
tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority.
Critical accounting estimates and judgements
Some of the accounting policies require the application of significant judgment by management in selecting the appropriate assumptions for
calculating financial estimates.
By their nature, these judgments are subject to an inherent degree of uncertainty. Estimates and judgements are continually evaluated and are 
based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. 
The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within 
the next financial year are discussed below.
Provisions for decommissioning and site restoration costs
Management uses its judgement and experience to provide for and (in the case of capitalised decommissioning costs) amortise the estimated costs
for decommissioning and site rehabilitation over the life of the mine. The ultimate cost of decommissioning and site rehabilitation is uncertain and cost
estimates can vary in response to many factors including changes to relevant legal requirements, the emergence of new restoration techniques or
experience at other mine sites. The expected timing and extent of expenditure can also change, for example in response to changes in ore reserves 
or processing levels. As a result, there could be significant adjustments to the provisions established which could affect future financial results.
Ore reserves estimates
The Group reports its estimated ore reserves in accordance with Canadian National Instrument 43-101. Mining assets are amortised over the
estimated life of the mineral reserves on a unit of production basis. There are numerous uncertainties inherent in estimating ore reserves, and
assumptions that were valid at the time of estimation may change when new information becomes available. These include assumptions as to grade
estimates and cut-off grades, recovery rates, commodity prices, exchange rates, production costs, capital costs, processing and reclamation costs
and discount rates. The actual volume of ore extracted and any changes in these assumptions could affect prospective depreciation rates and carrying
values of property, plant and equipment and intangible assets. Financial Statements
61
Amara Mining plc Annual Report & Accounts 2012
Summary of Significant Accounting Policies
for the year ended 31 December 2012
Impairment
In undertaking an impairment review for the operating mines or advanced exploration projects a technical economic model is prepared which includes
full details of the mining schedule, head grade, recoverability, strip ratios of waste to ore, consumables used and operating costs. From this information
the amount of gold production is calculated and revenues estimated. Operating costs, including royalties and refining charges are then entered and a
monthly cash flow is produced, which is used to calculate the net present value of the pre-tax free cash flow from the operation. This net present value
is then compared to the carrying value of the operation on the balance sheet and an assessment is made regarding impairment. 
Should any of the key parameters differ from the assumptions contained within the technical economic model, such as tonnes of ore mined, grade of
ore mined, recovery profile or gold price, the net present value will be affected either positively or negatively. If the impact is negative, an impairment
charge may be required that has not been recognised in these financial statements.
In some cases using a technical economic model to provide a value in use calculation is not appropriate or possible. In these situations impairment
reviews are carried out by reference to fair value less cost to sell. This is achieved by reference to a review of the economic value per ounce of resource
against comparable transactions and the market value of other gold companies to assess if the fair value less cost to sell supports the carrying value.
Valuation of mining licences 
The valuation of mining licences included in these financial statements reflect the shares issued to non-controlling interests in exchange for the
licences. The valuation was based on the net present values expected to arise from the related mining assets. These cash flows are subject to
numerous uncertainties which may affect the valuation of the licences. 
Inventories
Valuations of gold in stockpiles and gold in process require estimations of the amount of gold contained in, and recovery rates from, the various work
in progress gold circuits. These estimations are based on analysis of samples and prior experience. Judgement is also required regarding the timing of
utilisation of stockpiles and the gold price to be applied in calculating net realisable value.
Indirect taxes receivable
Given the uncertainties relating to the fiscal regimes, the Group has had to apply judgement in determining the value and timing of amounts that will 
be recovered with respect to indirect taxes owing to the Group in Burkina Faso and Côte d’Ivoire. The amounts reflected in the financial statements are
the Directors’ best estimate of the recovery of these amounts.
Commissioning of operations
Prior to a mine being considered substantially complete and ready for its intended use, direct operating costs net of associated revenue relating to the
mine are capitalised within mine development cost. Management consider a number of criteria to determine when this point is reached, including the
ability of the mine to recover and process ore on a sustainable basis at grades consistent with the ongoing mine plan and, as a result, sustain the
ongoing production of gold.
Tax assessment
The fiscal regimes under which the Group operates are often complex and are subject to changes which may be over and above the fiscal stability
agreements the Group has in place. The operating companies in Burkina Faso, Côte d’Ivoire and Sierra Leone have regular detailed and stringent tax
assessments that can give rise to additional liabilities as a result of errors made or corrections and changes to taxation law.
Following completion of a tax assessment, management carries out rigorous reviews of the findings of the assessment in conjunction with local and
international advisers to conclude on the veracity and quantum of any findings. Based on these reviews an initial provision may be made should it be
considered that such liabilities (or assets) meet the recognition criteria of a provision. 
Litigation and contractual disputes
As noted in the principal risks section the Group has several contractual relations that could potentially end in dispute and legal settlement given their
complexity. In the event of a dispute arising the Group employs internal and external contract experts to provide an assessment of the quantum of any
likely settlement and whether a provision is required.
Company Overview Business Review Governance Financial Statements 1 Segmental reporting
Operating segments have been identified on the basis of internal reports about components of the Group that are regularly reviewed by the Group’s
chief operating decision maker. The Group’s chief operating decision maker is considered by management to be the Board of Directors. The operating
segments included in internal reports are determined on the basis of their significance to the Group. In particular, operating mines are reported as
separate segments together with exploration projects that have significant capitalised expenditure. An analysis of the Group’s business segments is
set out below.
All other
Kalsaka Yaoure Baomahun segments T otal
US$000 US$000 US$000 US$000 US$000
Year ended 31 December 2012
External revenue – sale of gold 89,370 2,289 - - 91,659
Direct costs of production (46,428) (3,149) - - (49,577)
Other operating and administrative costs (7,729) (2,514) - (7,859) (18,102)
Segmental result - EBITDA 35,213 (3,374) - (7,859) 23,980
Total assets 74,654 35,015 78,977 26,754 215,400
Capital expenditure 38,592 14,221 18,518 1,799 73,130
All other
Kalsaka Yaoure Baomahun segments T otal
US$000 US$000 US$000 US$000 US$000
Year ended 31 December 2011
External revenue – sale of gold 114,209 9,878 - - 124,087
Direct costs of production (53,349) (8,473) - - (61,822)
Other operating and administrative costs (8,995) (3,356) - (6,370) (18,721)
Segmental result - EBITDA 51,865 (1,951) - (6,370) 43,544
Total assets 53,368 27,508 61,815 11,350 154,041
Capital expenditure 6,814 1,970 16,349 469 25,602
In 2012 the Group had two customers (2011: one).
2012 2011
% %
Customer A 85 100
Customer B 15 -
The segmental result reported represents earnings before interest, tax, depreciation and amortisation (EBITDA) and excludes share option charges,
which is the measure of segmental profit regularly reported to the board of Directors. The accounting policies of the reporting segments are different
from the Group’s accounting policies as follows:
• Pre-commissioning income and expenditure at operating mines is not capitalised in the segmental results.
• Income is accrued for gold bullion on hand at the period end in segmental results and, accordingly, no stock is recognised for this item.
• The depreciation charge against segmental assets is based on a different total asset cost compared to the statutory accounts due, to the fact that
income and expenditure is not capitalised during the commissioning period. In addition, the total asset cost is depreciated from the commencement
of mining operations.
A reconciliation of segmental revenue to the statutory financial statements is as follows:
2012 2011
US$000 US$000
Revenue for reportable segments 91,659 124,087
Change in accrued revenue for gold bullion stock at year-end (339) (2,403)
Revenue for statutory accounts 91,320 121,684
Financial Statements
62
Amara Mining plc Annual Report & Accounts 2012
Notes to the Consolidated Financial Statements
for the year ended 31 December 2012 A reconciliation of EBITDA to profit before taxation is as follows:
2012 2011
US$000 US$000
EBITDA for reportable segments 23,980 43,544
Depreciation and amortisation (9,825) (14,966)
Share based payments (786) (916)
Net interest (payable)/received (162) 100
Loss on disposal of fixed assets (64) (19)
Change in accrued revenue for gold bullion stock at year-end 115 (1,433)
Impairment of deferred exploration and evaluation costs (4,374) -
Exchange rate variance (40) (742)
Provision for Burkinabe tax audit (925) -
VAT provision released/(provided) net of direct fees in year 608 (192)
Profit before taxation 8,527 25,376
A reconciliation of segmental assets to the statutory financial statements is as follows:
2012 2011
US$000 US$000
Total assets for reportable segments 216,350 154,041
EBITDA capitalised during commissioning phase of mining operations 5,962 5,962
Differences in depreciation and amortisation 749 1,176
Impairment of non-current assets (21,914) (21,914)
Accrued revenue for gold bullion stock at year-end (115) 1,433
Total assets 201,032 140,698
Geographic information
Burkina Faso Côte d’Ivoire Sierra Leone UK Other Total
US$000 US$000 US$000 US$000 US$000 US$000
Year ended 31 December 2012
Revenue 89,031 2,289--- 91,320
Non-current assets 42,513 23,727 78,032 220 3 144,495
Year ended 31 December 2011
Revenue 111,806 9,878--- 121,684
Non-current assets 14,947 11,470 60,097 76 342 86,932
2 Operating profit
The operating profit is stated after charging/(crediting):
2012 2011
US$000 US$000
Depreciation of property, plant and equipment 9,109 12,947
Amortisation of intangible assets 716 2,019
Share option charges 786 916
Impairment of deferred exploration and evaluation costs 4,374 -
Provision for Burkinabe tax audit 925 -
VAT provision released (1,505) (1,874)
Exchange differences 40 742
In addition, US$608,000 (2011: US$310,000) of depreciation relating to property plant and equipment has been capitalised within deferred exploration
and evaluation costs and US$756,000 (2011: US$1,063,000) of depreciation has been released from inventories.
The exploration costs written off relate to projects which the Board consider to be of no further commercial value to the Group.
Financial Statements
63
Amara Mining plc Annual Report & Accounts 2012
Notes to the Consolidated Financial Statements
for the year ended 31 December 2012
Company Overview Business Review Governance Financial Statements 2 Operating profit (continued)
Auditor’s Remuneration
Amounts payable to PKF (UK) LLP and their associates in respect of both audit and non-audit services:
2012 2011
US$000 US$000
Fees payable to the Company’s auditor for the audit of the Company’s annual accounts 100 98
Fees payable to the Company’s auditor and its associates in respect of:
- The auditing of accounts of associates of the Company pursuant to legislation 
(including that of countries and territories outside the United Kingdom) 160 129
- Other assurance services supplied pursuant to such legislation 22 39
- Other services relating to taxation 47 112
329 378
The Board reviews the nature and extent of non-audit services to ensure that auditor’s independence is maintained.
3 Directors’ and employee remuneration and staff numbers
The average monthly number of employees (including Directors) for the year for each of the Group’s principal divisions was as follows:
2012 2011
Group Group
Operations 494 509
Administration 137 134
631 643
The aggregate remuneration of these persons, including the costs of all Directors, was as follows:
2012 2011
Group Group
US$000 US$000
Wages and salaries 14,525 12,718
Social security costs 1,392 915
Share based payment 786 916
16,703 14,549
Emoluments paid to Directors 2012 2011
Group Group
US$000 US$000
Aggregate emoluments 2,146 2,468
Contributions to pension schemes 94 94
Share based payment 362 451
Compensation for loss of office 487 -
3,089 3,013
The number of Directors to whom retirement benefits accrued during the year is 4 (2011: 3).
The highest paid Director received aggregate emoluments totalling US$974,000 (2011: US$1,440,000).
4 Finance income
2012 2011
US$000 US$000
Interest on bank deposits 208 124
208 124
5 Finance costs
2012 2011
US$000 US$000
Interest payable 370 24
Loss on foreign exchange 127 222
497 246
Financial Statements
64
Amara Mining plc Annual Report & Accounts 2012
Notes to the Consolidated Financial Statements
for the year ended 31 December 2012 6 Income tax
2012 2011
US$000 US$000
Tax charge
Current tax 6,291 7,166
Deferred tax charge - foreign (211) 998
6,080 8,164
Domestic income tax is calculated at 24.5% (2011: 26.5 %) of the estimated assessable profit or loss for the year. Taxation for other jurisdictions is
calculated at the rates prevailing in the respective jurisdictions.
The charge for the year can be reconciled to the profit per the statement of comprehensive income as follows:
2012 2011
US$000 US$000
Profit before tax 8,527 25,376
Tax at the domestic income tax rate of 24.5% (2011: 26.5%) 2,089 6,725
Expenses not allowable for tax 889 673
Effect of lower rate overseas (1,417) (2,733)
Share based payments: increase in deferred tax asset not recognised (19) (6)
Depreciation in advance of capital allowances not recognised 688 800
Income tax provision for Burkinabe tax audit 775 -
Withholding tax on overseas dividends 902 753
Tax losses not recognised 1,180 837
Other permanent differences 993 1,115
Tax charge 6,080 8,164
The tax rate in Burkina Faso was 17.5%, Côte d’Ivoire was 25% and Sierra Leone 30% for both periods.
2012 2011
US$000 US$000
Deferred Tax Asset - Not Recognised
Unrecognised temporary differences (gross)
Relating to carried forward tax losses 50,017 45,199
Relating to potential tax deductions in respect of share based payments 208 574
Other timing differences 10,462 8,910
Other deferred tax assets have not been recognised in the financial statements because of the uncertainty as to the incidence and timing of future
taxable income against which the asset may be recovered.
2012 2011
US$000 US$000
Deferred tax liability
Other timing differences 94 305
Deferred tax liabilities recognised in the financial statements are in respect of the Group’s Kalsaka gold mine in Burkina Faso. They represent timing
differences between the local tax bases and accounting policies and those present in the Group financial statements under IFRS. The main differences
being income recognition and depreciation in advance of taxable benefits.
At 31 December 2012 the subsidiary operating the Kalsaka gold mine in Burkina Faso had distributable reserves totalling $14.7m (2011: $17.2m). In
the event of a dividend distribution income tax totalling US$0.7m would be payable. No provision has been made for this amount as Amara Mining plc
has control over the timing of any distribution and no payment is likely in the foreseeable future.
7 Earnings/(loss) per share
The calculation of the basic and diluted (loss)/earnings per share is based on the following data:
2012 2011
US$000 US$000
(Loss)/profit for the purposes of (loss)/earnings per share (net (loss)/profit 
for the year attributable to equity holders of the parent) (351) 12,389
Number of shares
Weighted average number of ordinary shares for the year (‘000’s) 158,065 131,765
Effect of share options in issue -
1
2,193
Weighted average for the purposes of diluted earnings/(loss) per share (‘000’s) 158,065 133,958
1
Due to the loss incurred in 2012 the effect of the share options in issue (totalling 10,000,980) 
is anti-dilutive and consequently not included in the calculation of diluted loss per share. 
Financial Statements
65
Amara Mining plc Annual Report & Accounts 2012
Notes to the Consolidated Financial Statements
for the year ended 31 December 2012
Company Overview Business Review Governance Financial Statements 8 Intangible assets
Deferred
exploration & 
Exploration & evaluation 
mining rights costs Total
Group US$000 US$000 US$000
Cost
At 1 January 2011 30,223 22,242 52,465
Additions - 21,695 21,695
At 31 December 2011 30,223 43,937 74,160
Additions 26,325 35,709 62,034
Impairment - (4,374) (4,374)
Transfer to property, plant and equipment - (4,858) (4,858)
At 31 December 2012 56,548 70,414 126,962
Amortisation
At 1 January 2011 4,114 - 4,114
Charge for the year 2,019 - 2,019
At 31 December 2011 6,133 - 6,133
Charge for the year 716 - 716
At 31 December 2012 6,849 - 6,849
Net book value
At 31 December 2012 49,699 70,414 120,113
At 31 December 2011 24,090 43,937 68,027
At 1 January 2011 26,109 22,242 48,351
Included above is an amount of US$72.5 million in relation to the Baomahun Gold Project. A further US$5.7m is included within Property Plant and
Equipment in Note 9 relating to the Baomahun Gold Project. These amounts are recoverable through the exploitation or sale of the project. In order to
recover this amount through exploitation significant additional funds would be required to construct an operating mine. Financing risk is discussed in
the Principal Risks and Uncertainties on page 42 and 43.
The addition to Exploration and Mining Rights in the year relates to the acquisition of the Sega Gold Project in Burkina Faso, comprising two
exploration permits hosting a defined gold resource. This amount is recoverable through the exploitation of the project, subject to the granting of a
mining permit which is expected in mid 2013. Further information on the acquisition is provided in note 23. Political risk, including licensing risk, is
discussed in the Principal Risks and Uncertainties on page 42 and 43.
Financial Statements
66
Amara Mining plc Annual Report & Accounts 2012
Notes to the Consolidated Financial Statements
for the year ended 31 December 2012 9 Property, plant and equipment
Mining,
development Motor
& associated vehicles, office,
Assets in the property, plant equipment
course of & equipment fixtures &
construction cost computers T otal
Group US$000 US$000 US$000 US$000
Cost
At 1 January 2011 - 70,604 4,698 75,302
Additions - 2,526 1,381 3,907
Transfer - 161 (161) -
Disposals - (24) - (24) 
At 31 December 2011 - 73,267 5,918 79,185
Additions 4,543 4,895 1,658 11,096
Transfer - 4,858 - 4,858
Disposals - - (223) (223)
At 31 December 2012 4,543 83,020 7,353 94,916
Depreciation
At 1 January 2011 - 44,439 2,978 47,417
Charge for the year - 13,074 1,246 14,320
Transfer - 133 (133) -
Disposals -(5) -(5)
At 31 December 2011 - 57,641 4,091 61,732
Charge for the year - 7,719 1,242 8,961
Disposals - - (159) (159)
At 31 December 2012 - 65,360 5,174 70,534
Net Book Value
At 31 December 2012 4,543 17,660 2,179 24,382
At 31 December 2011 - 15,626 1,827 17,453
At 1 January 2011 - 26,165 1,720 27,885
Mining,
development Motor
& associated vehicles, office
property, plant equipment,
& equipment fixtures &
costs computers T otal
Company US$000 US$000 US$000
Cost
At 1 January 2011 119 77 196
Additions -4646
At 31 December 2011 119 123 242
Additions - 232 232
At 31 December 2012 119 355 474
Depreciation
At 1 January 2011 43 59 102
Charge for the year 39 25 64
At 31 December 2011 82 84 166
Charge for the year 37 51 88
At 31 December 2012 119 135 254
Net book value
At 31 December 2012 - 220 220
At 31 December 2011 37 39 76
At 1 January 2011 76 18 94
Financial Statements
67
Amara Mining plc Annual Report & Accounts 2012
Notes to the Consolidated Financial Statements
for the year ended 31 December 2012
Company Overview Business Review Governance Financial Statements 10 Investments and subsidiaries
Subsidiary
Undertakings
Company US$000
Cost brought forward at 1 January 2011 and 1 January 2012 10,323
Addition 4
At 31 December 2012 10,327
Subsidiary undertakings and other related companies held at the year-end were as follows:
Country of Principal Amara Mining plc’s
Subsidiary undertaking incorporation activity effective interest
2012 2011
Amara Mining (Sierra Leone) Limited* United Kingdom Head office 100% 100%
Amara Mining (Burkina) Limited* United Kingdom Exploration 100% 100%
Amara Mining (Cote d’Ivoire) Limited* United Kingdom Exploration 100% 100%
Amara Mining (Mali) Limited* United Kingdom Exploration 100% 100%
Amara Mining Services Limited* United Kingdom Dormant 100% -
Cluff Gold (SL) Limited** Sierra Leone Exploration 100% 100%
Cluff Gold Sega SARL Burkina Faso Exploration 100% -
Cluff Gold (WA) Côte d’Ivoire SARL** Côte d’Ivoire Exploration 100% 100%
Cluff Mining Burkina SARL** Burkina Faso Exploration 100% 100%
Kalsaka Mining SA** Burkina Faso Mining 78% 78%
Karbasso Joint Venture SARL** Mali Dormant 90% 90%
Baomahun Gold Limited** Sierra Leone Exploration 100% 100%
Yaoure Mining SA** Côte d’Ivoire Mining 90% 90%
Winston Mining Limited BVI Dormant 100% 100%
* Names changed in the year
** Companies owned indirectly.
11 Other receivables
2012 2011 2012 2011
US$000 US$000 US$000 US$000
Group Group Company Company
Non-current assets
Taxation debtor - 1,452 - -
Amounts due from subsidiaries - - 107,633 48,546
Total non-current assets - 1,452 107,633 48,546
Current assets
Prepayments and accrued income 916 1,157 73 87
Taxation debtor 3,676 3,889 155 31
Other debtors 1,517 1,540 - 17
Amounts due from subsidiaries - - 7,778 8,834
Total current assets 6,109 6,586 8,006 8,969
The taxation debtor relates to indirect taxes recoverable in the UK and West Africa and has been allocated between amounts due within less than 
one year and more than one year on the basis of the Directors’ expectations of when these amounts will be received. Further information relating to
the recovery of these amounts is set out in note 18. Amounts receivable from subsidiary companies have been allocated between amounts due within
less than one year and more than one year on the basis of the Directors’ expectations of when these loans will be repaid from operating cashflow. 
Details of the terms of these receivables are included in note 21.
12 Inventories
2012 2011 2012 2011
US$000 US$000 US$000 US$000
Group Group Company Company
Consumable stores 2,784 2,358 - -
Ore stockpiles 5,539 6,544 - -
Gold in process 7,814 7,347 - -
Gold bullion 2,481 2,026 - -
18,618 18,275 - -
Following the commissioning of a crusher circuit at Kalsaka, Burkina Faso, a provision totalling US$1,993,000 made in 2010 in respect of oversize
stockpile ore was reversed in 2011.
Financial Statements
68
Amara Mining plc Annual Report & Accounts 2012
Notes to the Consolidated Financial Statements
for the year ended 31 December 2012 13 Share capital and reserves
2012 2011
Share capital US$000 US$000
Authorised
200,000,000 Ordinary shares of 1p each 3,080 3,080
Issued and Fully Paid
168,113,466 Ordinary shares of 1p each (2011: 131,897,937) 2,951 2,375
Shares issued
During 2012, 36,215,529 ordinary shares were issued as follows:
On 8th March 2012, 150,000 ordinary share of 1p were issued at 74p in respect of the exercise of options.
On 22nd March 2012, by way of placing, 25,000,000 ordinary shares of 1p were issued at 92p.
On 24th March 2012, 11,000,000 ordinary shares of 1p were issued at 65.75p in respect of the acquisition of the Sega Gold project in Burkina Faso.
On 23rd November 2012 42,000 ordinary shares of 1p were issued at 50p in the respect of the exercise of options.
On 21st December 2012, the Company issued 23,529 new ordinary shares of 1p being 7,843 new ordinary shares of 1p each to the following non-
executive Directors: H Faul, P Cowley and G Stanley at a value of 63.75p each in accordance with their letters of appointment.
During 2011, 628,606 ordinary shares were issued as follows: 
On 1 January 2011 182,565 ordinary shares of 1p were issued at 40p, on 17 March 2011 365,130 ordinary shares of 1p were issued at 40p, on 8 April 2011
25,000 ordinary shares of 1p were issued at 34p and on 4 August 10,000 ordinary shares of 1p were issued at 51p; all in respect of the exercise of share options.
On 21 December 2011, the Company issued 45,911 new ordinary shares of 1p being 7,155 new ordinary shares of 1p each to the following non-
executive Directors: N Berry, R Danchin, T Wadeson, P Cowley, R Winston and G Stanley, and 2,981 new ordinary shares of 1p each to J G Cluff at 
a value of 69.88p each in accordance with their letters of appointment.
During 2012 the Company has complied with the Companies Act requirements regarding the maintenance of capital.
Share premium
The share premium account represents the excess cash received on the issue of new shares for a premium on the nominal value. Only those costs
specifically associated with those share issues are debited to the account.
Merger reserve
The acquisition by the Company of Cluff Gold (UK) Limited in November 2004 was accounted for in accordance with the merger accounting principles
set out in UK Financial Reporting Standard 6 and the Companies Act 1985, which continue under the Companies Act 2006, whereby the consolidated
financial statements were presented as if the business previously carried out through Cluff Gold (UK) Limited had always been owned and controlled
by the Company. The transitional requirements of IFRS1 allowed prospective application of IFRS3 for all business combinations subsequent to the
transition date (1 January 2006). Accordingly this acquisition was not re-stated in accordance with that standard. 
During 2008 the Company acquired Winston Mining Limited. The Company has claimed merger relief in respect of this acquisition and accordingly 
the premium arising on the issue of shares has been credited to the merger reserve.
Translation reserve
The translation reserve comprises all foreign exchange differences arising from the translation of the financial statements of operations that do not 
have a US Dollars functional currency. Exchange differences arising are classified as equity and transferred to the Group’s translation reserve. 
Such translation differences are recognised in profit or loss in the period in which the operation is disposed of. 
On 1 January 2011 the US Dollar was adopted as the functional currency for all entities in the Group. Consequently, there are no exchange differences
on the translation of subsidiaries and the currency translation reserve will remain frozen as at the 31 December 2010 balance. A translation reserve
exists in respect of the parent company because prior to 1 January 2011 the functional currency adopted was Sterling and the presentational currency
was US Dollar. The translation reserve of the parent company will also remain frozen at the 31 December 2010 balance.
Share option reserve
The share option reserve includes an expense based on the fair value of share options issued and remaining in issue at 31 December 2012.
Financial Statements
69
Amara Mining plc Annual Report & Accounts 2012
Notes to the Consolidated Financial Statements
for the year ended 31 December 2012
Company Overview Business Review Governance Financial Statements 14 Non-controlling interests
The Group has three subsidiaries with minority shareholders: Kalsaka Mining SA, in which the Group owns a 78% effective interest; Yaouré Mining SA,
in which the Group owns a 90% effective interest; and Karbasso Joint Venture SARL, in which the Group owns a 90% effective interest. 
15 Provisions
Decommissioning, mine closure 
and site restoration provision
Group US$000
At 1 January 2011 6,059
Provision in year 2,519
At 31 December 2011 8,578
Provision in year 720
At 31 December 2012 9,298
Decommissioning, mine closure and site restoration costs are estimated based on a formal closure plan and are subject to regular reviews. 
The provision does not allow for additional obligations expected from future developments. These provisions are expected to be utilised at the 
end of each mines life, which is also subject to regular review. 
The timing of the utilisation of the provision is subjective and dependent upon a number of factors around the closure of the mines. Based on current
estimations the provision is expected to be utilised within two to five years. The discount factor applied does not result in a material difference and
consequently has not been included.
16 Trade and other payables
2012 2011 2012 2011
US$000 US$000 US$000 US$000
Group Group Company Company
Trade creditors 2,213 2,972 136 186
Other creditors 1,705 3,082 103 104
Accruals and deferred income 8,630 8,651 486 218
12,548 14,705 725 508
17 Borrowings
2012 2011 2012 2011
US$000 US$000 US$000 US$000
Group Group Company Company
Non-current borrowing 10,000 - 10,000 -
Current portion of borrowings 10,000 - 10,000 -
Facility fees (424) - (424) -
19,576 - 19,576 -
The loan was drawn in September 2012 and is secured by way of a mortgage over the shares of Amara Mining (Burkina) Limited (formerly Cluff Mining
(West Africa) Limited).
The loan is repayable in equal monthly instalments from July 2013 until completion of the repayments in June 2014. There have been no defaults or
breaches of interest payment terms during the period.
Facility fees have been prepaid and are being amortised over the life of the loan.
The loan bears interest at 2.5% plus three months US Dollar LIBOR, which represents a floating interest rate risk to the Group, and is payable monthly. 
In addition, the loan agreement provides for the lender to be delivered 1,929 ounces of gold each month for the period of the loan at a discount of
2.25% to the London Bullion Market Association PM fix on the monthly price fixing date. This notional interest charge is subject to commodity price
risk and is considered to be an embedded derivative as its economic characteristics are not closely related to those of the host contract. However, the
fair value of the embedded derivative has been calculated by management and is considered immaterial and consequently is not shown separately
from the host contract.
Financial Statements
70
Amara Mining plc Annual Report & Accounts 2012
Notes to the Consolidated Financial Statements
for the year ended 31 December 2012 18 Financial instruments and risk management
Categorisation and fair value of financial instruments
The Group’s financial assets comprise cash and cash equivalents and trade and other receivables. In addition the Company’s financial assets include
amounts due from subsidiaries. All of the Group’s and Company’s financial assets are classified as loans and receivables. The Group’s and Company’s
financial liabilities comprise trade and other payables and borrowings. All of the Group’s and Company’s financial liabilities are measured at amortised
cost. The taxation debtors as described in note 11 are not financial instruments as defined by IAS 32. These amounts have been included within the
below disclosures in respect of foreign exchange and credit risk as the Directors believe that the exposure of the Group to these financial risks in
respect of these assets is significant.
It is the Directors’ opinion that the carrying value of all of the Group’s and Company’s financial assets and financial liabilities approximates their fair value.
Financial risk management
The Group’s operations expose it to a number of financial risks. A risk management programme has been established to protect the Group against 
the potential adverse effects of these financial risks. There has been no significant change in these financial risks in the year other than in relation to
interest rate risk as a result of the new borrowing facility.
The principal financial risks relate to foreign currency risk, commodity price risk, liquidity risk, interest rate risk and credit risk.
a) Foreign currency risk
Foreign currency risk refers to the risk that the value of a financial commitment or recognised asset or liability will fluctuate due to changes in foreign
currency rates. The Group is exposed to foreign currency risk due to the following:
(i) Transactional exposure relating to operating costs and capital expenditure incurred in currencies other than US dollars, the functional currency
of operations.
(ii) Translation exposures relating to monetary assets and liabilities, including cash and short-term investment balances, held in currencies other
than US Dollars.
The table below shows the currency profile of cash and cash equivalents:
2012 2011 2012 2011
Group Group Company Company
US$000 US$000 US$000 US$000
US Dollars 24,732 19,330 24,578 7,750
Sterling 1,474 2,544 1,294 2,475
West African CFA franc 5,133 5,946 - -
Canadian Dollars - 447 2 448
Other 471 638 364 1
31,810 28,905 26,238 10,674
The Group also enters into transactions denominated in currencies other than US dollars. The Group’s exposure to foreign currency arises where 
a company holds monetary assets and liabilities in a currency other than US dollars. 
The following table shows the currency profile of the net monetary assets and liabilities of the Group:
US Dollars Total
2012 US$000 US$000
Currency of monetary items
Sterling 294 294
US Dollars (2,190) (2,190)
West African CFA Franc 5,041 5,041
Canadian Dollars 22
Other 357 357
Total 3,504 3,504
US Dollars Total
2011 US$000 US$000
Currency of monetary items
Sterling 2,768 2,768
US Dollars 15,779 15,779
West African CFA Franc (2,590) (2,590)
Canadian Dollars 447 447
Other 580 580
T otal 16,984 16,984
Financial Statements
71
Amara Mining plc Annual Report & Accounts 2012
Notes to the Consolidated Financial Statements
for the year ended 31 December 2012
Company Overview Business Review Governance Financial Statements 18 Financial instruments and risk management (continued)
The table below shows the impact of changes in exchange rates on the financial position of the Group due to monetary assets and liabilities
denominated in Sterling and West African CFA Francs:
Profit & Loss Equity
2012 2011 2012 2011
US$000 US$000 US$000 US$000
If there was a 20% weakening in the US Dollar/ Sterling exchange 
rate with all other variables held constant - increase/(decrease) (738) 568 (86) (137)
If there was a 20% strengthening in the US Dollar/ Sterling exchange 
rate with all other variables held constant - increase/(decrease) 886 (682) 103 164
If there was a 20% weakening in the US Dollar/ West African CFA Franc 
exchange rate with all other variables held constant - increase/(decrease) - - (92) (462)
If there was a 20% strengthening in the US Dollar/ West African CFA Franc 
exchange rate with all other variables held constant - increase/(decrease) - - 111 554
A 20% change represents management’s assessment of the reasonable possible exposure given the current level of exchange rates and the volatility
observed both on a historical basis and market expectations for future movement.
In general, the Group does not enter into derivatives to manage these currency risks. Details of the impact on foreign exchange movement in the year
are shown in notes 2 and 5. The Board frequently reviews the policy on currency translation risk in order to minimise translation exposure.
The Directors do not consider the Company to be at significant risk from currency fluctuations due to the low level of assets and liabilities held in
currencies other than the functional currency.
b) Commodity price risk
The Group is exposed to commodity price risk as its revenues are derived from contracts with its physical off-take partners at prices determined by
reference to the market price of gold at the delivery date. The Group is also exposed to fluctuations in the price of consumables, such as fuel, cement
and cyanide. The Group does not currently hold any gold future positions as a hedge against gold price volatility, or other derivatives as a hedge
against other commodity price fluctuations. The Board regularly reviews this matter. The Group occasionally makes forward sales on gold poured - this
risk is not deemed to be material as the sales are only at most a week in advance.
c) Liquidity risk
Management regularly review cash flow forecasts to determine whether the Group has sufficient cash reserves to meet future working capital
requirements and to take advantage of business opportunities. 
The table below sets out the maturity profile of financial liabilities as at 31 December 2012:
2012 2011 2012 2011
Group Group Company Company
US$000 US$000 US$000 US$%000
Due in less than one month 8,010 10,227 257 269
Due between one and three months 4,538 4,478 468 239
Borrowings due < 1 year 10,000 - 10,000 -
Borrowings due > 1 year 10,000 - 10,000 -
32,548 14,705 20,725 508
d) Credit risk
The Group is exposed to credit risk in respect of indirect taxes owing to the Group in West Africa, including indirect taxes recoverable of US$2,460,000
(2011: US$2,279,000) in Burkina Faso and US$1,352,000 (2011: US$4,725,000) in Côte d’Ivoire. Due to the slow moving nature of these amounts the
Directors have included an impairment provision against the taxation debtor in accordance with their best estimate of the recovery of these amounts
totalling US$310,000 (2011: US$227,000) in Burkina Faso and US$ nil (2011: US$1,505,000) in Côte d’Ivoire.
Recovery of indirect taxes in Côte d’Ivoire has significantly improved following the change of government in 2011 and the majority of the taxation
receivable has now been recovered. The remaining unprovided balance has been treated as due within one year.
The Group and the Company are also exposed to credit risk on their cash and cash equivalents and trade and other receivables, the total of which
represents the maximum exposure to credit risk. 
The Company is exposed to credit risk in respect of the loans recoverable from other Group companies. Details of these loans, the repayment terms
thereof, and amounts provided against these at 31 December 2012 are set out in note 21.
Financial Statements
72
Amara Mining plc Annual Report & Accounts 2012
Notes to the Consolidated Financial Statements
for the year ended 31 December 2012 e) Interest rate risk
Interest rate risk is the risk that the value of a financial instrument or cash flows associated with the instrument will fluctuate due to changes in 
market interest rates. Interest rate risk arises from interest bearing financial assets and liabilities that are used by the Company. Interest bearing assets
comprise trade receivables and cash and cash equivalents which are considered to be short-term liquid assets. Interest rate risk arises primarily from
borrowings issued at floating interest rates which exposes the Group to cash flow interest rate risk. It is the Group’s policy to settle trade payables
within the credit terms allowed and the Group does not therefore incur interest on overdue balances. 
No sensitivity analysis has been disclosed as management does not consider any reasonably possible fluctuation in interest rates to be sufficiently
material to disclose.
f) Capital management
The Group’s capital management objectives are to ensure the Group’s ability to continue as a going concern and provide access to adequate funding
for its exploration and development projects, so that it can provide adequate returns for shareholders and benefits for other stakeholders.
The Group monitors capital on the basis of the debt:equity ratio, based on external debt divided by total equity, and on its ability to service its debt.
The Group manages the capital structure and makes adjustments in the light of changes in economic conditions and risk characteristics of the
underlying assets. In order to maintain or adjust the capital structure the Group may issue new shares, draw down debt, or sell assets to reduce debt.
The Group will only commit to drawing down debt if forecast cashflows are deemed to be sufficient to service that debt and other financial obligations.
Debt:equity ratio 
2012 2011
US$000 US$000
Borrowings 19,576 -
Total equity 157,320 112,163
Debt:equity ratio 0.12 0.00
19 Commitments
Future commitments for the Group under non-cancellable operating leases are as follows:
Land and buildings
2012 2011
US$000 US$000
Payable in less than one year 214 149
Payable between one and two years 137 113
Payable between two and five years 273 48
624 310
Operating lease payments represent rentals payable by the Group for certain of its office properties. Leases are negotiated for an average term of three
years at fixed rental rates.
20 Share based payment
The Group operates a share option plan under which employees, consultants and advisers have been granted options to subscribe for ordinary
shares. All options are share settled. The number and weighted average exercise price of share options are as follows:
2012 2011
Weighted Weighted 
average average
Number exercise Number exercise 
of options price (p) of options price (p)
Outstanding at 1 January 7,705,000 68.6 7,813,260 66.2
Granted during the year 2,667,980 65.1 540,000 85.8
Exercised during the year (192,000) 69.0 (582,695) 40.0
Expired/cancelled during the year (180,000) 43.8 (65,565) -
Outstanding at 31 December 10,000,980 67.9 7,705,000 68.6
Exercisable at 31 December 3,943,000 65.4 3,055,000 68.3
The options outstanding at 31 December 2012 had a weighted average remaining contractual life of 7.1 years (2011: 6.5 years). For options exercised
in 2012, the weighted average share price at the date of exercise was 57.8p (2011: 103.9p).
Financial Statements
73
Amara Mining plc Annual Report & Accounts 2012
Notes to the Consolidated Financial Statements
for the year ended 31 December 2012
Company Overview Business Review Governance Financial Statements 20 Share based payment (continued)
The fair value of services received in return for share options granted is measured by reference to the fair value of the share options granted. 
This estimate is based on a Black-Scholes model which is considered most appropriate considering the effects of the vesting conditions, expected
exercise period and the payment of dividends by the Company. The inputs into the Black-Scholes model for options granted in the year were 
as follows:
2012 2011
Weighted average share price 65.6p 88.8p
Weighted average exercise price 65.1p 85.8p
Expected volatility 0.43 0.48
Expected life 3.5 3.5
Risk free rate 1% 1%
Expected dividends - -
Fair value per option 21.2p 31.7p
Expected volatility was determined by calculating the historical volatility of the Group’s share price over the previous year. The expected life used 
in the model has been adjusted, based on management’s best estimate, for the effects of non-transferability, exercise restrictions, and behavioural
considerations.
The total number of options over ordinary shares outstanding at 31 December 2012 was as follows:
Weighted
average
exercise
Exercise period Number price (p)
Exercisable until 2014 675,000 49.8
Exercisable until 2016 770,000 74.2
Exercisable until 2018 1,230,000 77.5
Exercisable until 2019 1,148,000 54.0
Exercisable until 2020 120,000 81.4
Exercisable at period end 3,943,000 65.4
Exercisable between 2013 and 2020 2,860,000 70.9
Exercisable between 2014 and 2021 530,000 85.5
Exercisable between 2015 and 2022 2,667,980 65.1
Total options 10,000,980 67.9
21 Related party transactions
The Group’s investments in subsidiaries have been disclosed in note 10. Transactions between the Company and its subsidiaries during the year are
disclosed below.
2012 2011
US$000 US$000
Interest receivable 2,910 669
Management charges receivable 1,781 1,936
Amounts owed by subsidiaries at year end 115,411 57,380
The amounts outstanding are unsecured and will be settled in cash. No guarantees have been given or received. Loans for which repayment
schedules have been determined are measured at amortised cost using the effective interest rate method. The Directors believe that all the unprovided
amounts receivable from Group companies are recoverable.
The repayment terms and interest rates for the amounts receivable from subsidiaries at the year-end are set out below:
2012 2011
Interest rate Repayment terms US$000 US$000
US LIBOR plus 2% Repayable in quarterly instalments - 39,977
US LIBOR plus 4% Overdue from quarterly instalments above - 11,590
GBP LIBOR plus 2% Repayable only once construction commences on applicable project - 2,636
US LIBOR plus 10% Repayable in quarterly instalments 38,243 -
Non-interest bearing loans Repayable only once construction commences on applicable project 112,390 36,447
150,633 90,650
Less: provision for irrecoverable amount
1
(35,222) (33,270)
115,411 57,380
1
Included within amounts receivable from subsidiary undertakings is US$53.9 million (2011:US$42.7 million) in respect of the Yaoure Gold Mine.
The performance of the mine was below budget since the commencement of operations and in 2008 a provision of US$30.7m was recognised.
The loan has been restructured to not be interest bearing following the placing of the mine on care and maintenance.
Financial Statements
74
Amara Mining plc Annual Report & Accounts 2012
Notes to the Consolidated Financial Statements
for the year ended 31 December 2012 21 Related party transactions (continued)
An amount of US$2.6 million has been provided in respect of Cluff Mining Burkina SARL, an exploration company situated in Burkina Faso. 
Following the decision to close operations in Mali a provision totalling US$1.9m was made in full against amounts due to the parent company.
Remuneration of key management personnel
Compensation for key management personnel is as follows:
2012 2011
US$000 US$000
Short term employee benefits (including NI contributions) 4,128 3,832
Post employment benefits 164 120
Share based payments 563 626
Termination benefits 487 -
5,342 4,578
During 2012 consultancy fees totalling US$180,000 were paid to J G Cluff, the former chairman, following his resignation as a director. These fees
were paid primarily to ensure continuity in the Company’s relations with West African Governments.
22 Contingent liabilities
a) Contract dispute
In February 2011 the Company received a proposal for additional costs sustained by the mining contractor at the Yaoure Mine totalling US$9.2m. An
updated claim was made in June 2011 totalling a further US$5.4m. A further claim for additional charges and interest was made in December 2012
taking the total claim to US$22.9m. Whilst the situation remains unresolved, the Company has received external advice that confirms that the current
provision of US$1.0m (included in accruals) is, in the opinion of the Directors, the maximum payable under the terms of the contract.
The terms of the contract clearly state that the rates set out therein shall apply regardless of the difficulty in performing the works under the contract,
such that the majority of the additional costs claimed cannot be recovered under the contract. 
b) Burkina Faso taxation claim
In November 2012, Kalsaka Mining SA (the subsidiary operating the Kalsaka mine in Burkina Faso), together with most international mining company’s
in Burkina Faso, were subject to detailed taxation audits for the years 2009, 2010 and 2011. Subsequently, the Burkinabe tax authorities made a claim
totalling US$9.5m for unpaid indirect and direct taxes. Following initial correspondence the claim was reduced to US$8.5m in February 2013.
Whilst the Company acknowledges that part of the claim is legitimate, the Directors consider the majority of the claim to be factually incorrect and not
binding under the tax and mining code of Burkina Faso. Consequently, the Directors believe a maximum settlement of US$1.7m will be made,
dependent upon negotiations. This amount has been provided. 
23 Asset acquisition
On 23 May 2012 the Company completed the acquisition of the Sega Gold Project in Burkina Faso from Orezone Gold Corporation. Consideration
totalled US$27.7m and was settled as follows:
Consideration
US$000
Cash consideration 15,551
11,000,000 ordinary share 1p at a premium of 64.75p 11,366
Acquisition fees 743
27,660
Consideration was allocated as follows:
Assets
US$000
Exploration and mining rights 26,325
Property, plant and equipment 1,335
27,660
Financial Statements
75
Amara Mining plc Annual Report & Accounts 2012
Notes to the Consolidated Financial Statements
for the year ended 31 December 2012
Company Overview Business Review Governance Financial Statements Financial Statements
76
Amara Mining plc Annual Report & Accounts 2012
Company Information
Company Secretary
Catherine Apthorpe
Registered office and head office
29-30 Cornhill, 
London, EC3V 3NF
Company Number
4822520
Principal Bankers
Barclays Bank plc
UK Banking, 1 Churchill Place, 
London, E14 5HP
Standard Bank plc
20 Gresham Street, 
London, EC2V 7JE
Nominated Adviser and Broker
Canaccord Genuity Limited
88 Wood Street, 
London, EC2V 7QT
Auditor
BDO LLP
Farringdon Place, 20 Farringdon Road, 
London, EC1M 3AP
Registrars
Capita Registrars
The Registry, 34 Beckenham Road, Beckenham, 
Kent, BR3 4TU
PR Advisers
Pelham Bell Pottinger
6th Floor, Holborn Gate, 330 High Holborn, 
London, WC1V 7QD
Legal Advisers
United Kingdom:
K&L Gates
One New Change, 
London, EC4M 9AF
Canada:
Fasken Martineau
333 Bay Street, Suite 2400 
Bay Adelaide Centre, Box 20
Toronto, ON M5H 2T6  Financial Statements
77
Amara Mining plc Annual Report & Accounts 2012
References
Peter Brown is a “Qualified Person” within the definition of National Instrument 
43-101 and has reviewed, verified and approved the information contained within
this annual report, including the sampling, analytical and test data underlying 
the information contained herein. Dr Brown (MIMMM) is the Group 
Exploration Manager.
This report includes certain “forward-looking information” within the meaning of
applicable Canadian securities legislation. All statements other than statements of
historical fact included in this report, including, without limitation, the positioning of
the Company for future success, statements regarding the exploration, drilling
results and potential future production at Yaoure, Kalsaka and Baomahun, the
assumptions and proposed operating parameters used in the feasibility study and
the timing of the feasibility study for Baomahun, and future capital plans and
objectives of Amara, are forward-looking information that involve various risks and
uncertainties. There can be no assurance that such statements will prove to be
accurate and actual results and future events could differ materially from those
anticipated in such statements. Important factors that could cause actual results to
differ materially from Amara’s expectations include, among others, risks related to
international operations, the actual results of current exploration and drilling
activities, changes in project parameters as plans continue to be refined as well as
future price of gold. Although Amara has attempted to identify important factors that
could cause actual results to differ materially, there may be other factors that cause
results not to be as anticipated, estimated or intended. There can be no assurance
that such statements will prove to be accurate as actual results and future events
could differ materially from those anticipated in such statements. Accordingly,
readers should not place undue reliance on forward-looking statements. Amara
does not undertake to update any forward-looking statements that are included
herein, except in accordance with applicable securities laws. 
Amara Mining plc is a “Designated Foreign Issuer” in accordance with National
Instrument 71-102 – Continuous Disclosure and Other Exemptions Relating to
Foreign Issuers (“NI 71-102”) in Canada, subject to the foreign regulatory
requirements of a foreign regulatory authority, namely, the AIM market of the
London Stock Exchange.
Resource and reserve data may not compute exactly due to rounding.
Kalsaka/Sega
Detailed geology, descriptions of the various exploration prospects at Kalsaka, and
other exploration information can be found in the Company’s NI43-101 report
“Technical Review of Kalsaka Gold Mine, Burkina Faso”, as prepared by SRK
Consulting, dated October 2008 and available on SEDAR.
Resource estimation has been subsequently updated for production changes.
Detailed geology, descriptions of the various exploration prospects at Sega, and
other exploration information can be found in the Company’s NI43-101 report
“Preliminary Economic Assessment of the Sega Project, Burkina Faso”, as prepared
by Richard Quarmby (Group Project Manager), dated 30 November 2012 and
available on SEDAR. A technical report titled “Technical Report on the Mineral
Resource of the Sega Gold Project” and dated January 18, 2010, was previously
prepared by Orezone Gold Corporation and filed in SEDAR.
The RC drilling programme at Kalsaka/Sega was undertaken by an independent
drilling contractor. All the drill holes collar positions were pegged using a total
station theodolite and re-surveyed after drilling. The drill collars after survey were
checked by onsite geologist. Each 1.0m RC chipping passing through a cyclone is
collected in a plastic bag and reduced in a multistage splitter to get a split of
between 2kg and 4kg. Sampling was done under the supervision of the site
geologist. Duplicate samples were collected at every 10th sample point and one
blank inserted at every 20th point. Samples were submitted to the in-house
laboratory, dried, crushed and pulverised to 85-90% passing 106ìm and analysed
by bulk leach extractable gold assays for twelve hours.
The RAB drilling programme at Kalsaka/Sega was undertaken by an independent
drilling contractor. All the drill holes collar positions were pegged using a Garmin
GPS unit and re-surveyed after drilling. The drill collars after survey were checked
by onsite geologist. Each 1.0m RAB chipping passing through a cyclone is
collected in a plastic bag and 2m-composites are reduced in a multistage splitter to
get a split of between 2kg and 4kg. Sampling was done under the supervision of
the site geologist. Duplicate samples were collected at every 20th sample point and
one blank inserted at every 20th point. Samples were submitted to the in-house
laboratory, dried, crushed and pulverised to 85-90% passing 106ìm and analysed
by bulk leach extractable gold assays for twelve hours.
RAB and RC check assays were also submitted to external commercial laboratories
in Burkina Faso as part of the Company’s quality control procedures.
Baomahun
Detailed geology and other exploration information can be found in the Company’s
report “Technical Review, Mineral Resource Estimate for the Baomahun Gold
Exploration Project, Sierra Leone” dated 03 January 2013, made available on the
Company’s website and on SEDAR. 
Drill intersections were calculated using a minimum width of 2m, and a cut-off of
0.5g/t and up to two metres of internal waste.. The true thickness of the
mineralisation may vary from 40% to 100% of the intersected widths. Drill cores 
for assaying were taken at a maximum of one metre intervals and were cut with a
diamond saw. One half of the core was placed in sealed bags and sent to the
Company's sample preparation facility at Baomahun, Sierra Leone. The core
samples were then crushed to minus 4mm and split, with 1.0kg of sample
pulverised down to 95% passing 106 microns. Approximately 120 grams of the
pulverised sample were then shipped to the SGS Laboratories (which are
independent of the Company) in Tarkwa, Ghana, where the samples were analysed
for gold by fire assay using a 50g charge. As part of the Company's QA/QC
procedures, internationally recognised standards, blanks and duplicate samples
were inserted into the sample batches.
Yaoure
Detailed geology and other exploration information can be found in the Company’s
NI43-101 report “Technical Review of Angovia Gold Mine, Mount Yaoure, Côte
d’Ivoire” as prepared by SRK Consulting, dated October 2008 and available on
SEDAR. Amara announced a Mineral Resource update for Yaoure on 25 March
2013 and the Company intends to file a NI 43-101 technical report within 45 days 
of this date.
Resource estimation has been subsequently updated for production and
exploration changes. The diamond drilling programme at Yaoure was undertaken by
two independent drilling contractors. Drill cores for assaying were taken at a
maximum of two metre intervals, typically one metre, and were cut with a diamond
saw with one-half of the core placed in sealed bags. The core samples were sent
mainly to the Intertek sample preparation facility in Yamoussoukro, Côte d’Ivoire,
prior to fire assay, mainly at Intertek Minerals Ltd in Accra, Ghana, and also to the
SGS sample preparation facility in Yamoussoukro prior to fire assay at the SGS
laboratory in Tarkwa, Ghana). In addition, two batches of samples (two holes) were
sent to Bureau Veritas in Abidjan, Côte d’Ivoire, for sample preparation and fire
assay. The core samples were crushed down to minus 2 mm, with half the sample
then being pulverised down to 85% passing 75 microns, prior to analysis for gold
by fire assay using a 50 g sample. As part of the Company's QA/QC procedures,
internationally recognised standards, duplicates and blanks were inserted. Check
assays were carried out at ALS Geochemistry in Johannesburg, South Africa. The
laboratories used are independent of the Company.
Company Overview Business Review Governance Financial Statements
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