african barrick gold 
annual report  accounts 2012 forwardlooking statements
this report includes ‘forwardlooking statements’ that express or imply expectations of  
future events or results forwardlooking statements are statements that are not historical 
facts these statements include without limitation financial projections and estimates  
and their underlying assumptions statements regarding plans objectives and 
expectations with respect to future production operations costs products and services 
and statements regarding future performance forwardlooking statements are generally 
identified by the words ‘plans ’ ‘expects ’ ‘anticipates ’ ‘believes ’ ‘intends ’ ‘estimates’ and other 
similar expressions
all forwardlooking statements involve a number of risks uncertainties and other factors 
although abg’s management believes that the expectations reflected in such forward
looking statements are reasonable investors are cautioned that forwardlooking information 
and statements are subject to various risks and uncertainties many of which are difficult  
to predict and generally beyond the control of abg that could cause actual results and 
developments to differ materially from those expressed in or implied or projected by the 
forwardlooking information and statements contained in this report factors that could 
cause or contribute to differences between the actual results performance and achievements 
of abg include but are not limited to political economic and business conditions 
industry trends competition commodity prices changes in regulation currency fluctuations 
including the us dollar south african rand and tanzanian shilling exchange rates  
abg’s ability to recover its reserves or develop new reserves including its ability to convert 
its resources into reserves and its mineral potential into resources or reserves and to timely 
and successfully process its mineral reserves risks of trespass theft and vandalism changes 
in its business strategy as well as risks and hazards associated with the business of mineral 
exploration development mining and production accordingly investors should not place 
reliance on forwardlooking statements contained in this report
the forwardlooking statements in this report reflect information available at the time  
of preparing this report subject to the requirements of the disclosure and transparency  
rules and the listing rules or applicable law abg explicitly disclaims any obligation or 
undertaking publicly to release the result of any revisions to any forwardlooking statements 
in this report that may occur due to any change in abg’s expectations or reflect events or 
circumstances after the date of this report no statements made in this report regarding 
expectations of future profits are profit forecasts or estimates and no statements made in  
this report should be interpreted to mean that abg’s profits or earnings per share for any 
future period will necessarily match or exceed the historical published profits or earnings  
per share of abg or any other level
full year highlights
 – attributable gold production of 626212 
ounces and total cash costs of us949  
per ounce sold
 – revenue of us1087 million 
 – continued progress on the bulyanhulu 
cil expansion and upper east expansion 
our  key brownfield projects at bulyanhulu
 – renewal of the north mara special  
mining licences 
 – operational review initiated to drive  
improved returns and free cash flow 
generation from the existing asset base
 – total dividend for 2012 of us163  
cents per share
ebitda of
us331 million
average realised gold 
price of
us1668 
per ounce
net cash balance of
us401 million
final dividend of
us¢123
new country entry into
kenya
total community 
investment of
us144 million 
these highlights include nonifrs performance measures an explanation of nonifrs measures is provided as part of the glossary attributable gold production reflects equity ounces  
which exclude 30 of tulawaka’s production base annual report and accounts 2012 1
shareholder information financial statements overview performance governance
abg is tanzania’s largest gold 
producer and one of the ﬁve largest 
gold producers in africa we have 
four producing mines all located in 
northwest tanzania and several 
exploration projects at various stages 
of development in tanzania and 
kenya with a highquality asset base 
and solid growth opportunities we are 
executing a clear strategy to optimise 
expand and grow our business
abg is a uk public company with its headquarters 
in london we are listed on the main market of 
the london stock exchange under the symbol abg 
and have a secondary listing on the dar es salaam 
stock exchange also under the symbol abg 
historically and prior to our initial public offering 
ipo our operations comprised the tanzanian 
gold mining business of barrick gold corporation 
barrick our majority shareholder
abg reports in us dollars us and in accordance 
with ifrs as adopted by the european union 
unless otherwise stated in this report
the overview and performance sections make up the business review 
in accordance with section 417 of the companies act 2006
overview
an introduction to our business and 
key performance data
group at a glance 2
performance highlights 4
performance
operational and financial review strategic 
review market review sustainability and 
risk reviews
chairman’s statement 6
chief executive officer’s statement  8
operational review  12
strategy and business model 14
strategy case studies  16
operating review  24
exploration and development review 28
financial review 34
corporate responsibility 42
risk management 50
governance
an explanation of our approach to corporate  
governance remuneration policies and practices  
and the people who champion them
board of directors  56
senior management 58
corporate governance 59
directors’ report 70
directors’ responsibilities statement 75
remuneration report 76
reserves and resources 88
financial statements
detailed financial information for the year ended  
31 december 2012
independent auditors’ report on the consolidated  
financial statements 93
consolidated financial statements 94
notes to the consolidated financial statements 98
independent auditors’ report on the parent  
company financial statements 139
parent company financial statements 140
notes to the parent company financial statements 144
shareholder information
useful information for owners of abg shares
glossary of terms  155
shareholder enquiries 160
 more information within this report
 go online to find more information wwwafricanbarrickgoldcom
pg 2 wwwafricanbarrickgoldcom
corporate headquarters  
london uk
our office in london serves as abg’s 
corporate headquarters and is the base 
for abg’s executive directors and other 
members of the senior leadership team 
including the general counsel and the 
head of corporate development and 
investor relations
country office  
dar es salaam t anzania
our office in dar es salaam serves as the 
primary interface with the government 
in addition to being the logistical base in 
t anzania which provides incountry support 
to our operations other functions located 
in this office include community relations 
legal and communications
operations office  
johannesburg south africa
our johannesburg office is the regional 
base for capital projects planning technical 
services and administrative finance human 
resources and procurement functions for 
our operations
where we operate
currently all of abg’ s mining operations are in t anzania w e believe that t anzania 
possesses significant mining potential critically it has an established legal and 
regulatory framework for mining companies and a history of political stability  
and democratically elected governments
group at a glance
a single focus gold in africa
bulyanhulu buzwagi north mara
bulyanhulu is a high grade underground mine 
primarily accessed by a vertical shaft the mine 
is a trackless operation using longhole as its 
principal mining method with alimak 
conventional cut and fill and drift and fill the 
other primary mining methods the process 
plant currently has the capacity to process 
an average of approximately 3300 tonnes of 
ore per day approximately 11 million tonnes 
per year and produces both doré and copper
gold concentrate 
bulyanhulu’ s life of mine is currently estimated 
to be over 25 years based on its proven and 
probable gold reserves of 10564000 ounces
buzwagi is a low grade bulk deposit with a single 
large open pit the mill is designed with a 
throughput capacity of 12000 tonnes per day 
approximately 44 million tonnes per year and 
produces both doré and coppergold concentrate 
buzwagi’s life of mine is currently estimated 
to be over 10 years based on its proven and 
probable gold reserves of 2697000 ounces
north mara is a high grade open pit mine 
consisting of three open pit deposits nyabirama 
gokona and nyabigena the process plant has 
the capacity to process an average of 8000 
tonnes per day or approximately 28 million 
tonnes per year and produces doré 
north mara’ s life of mine is estimated to be over 
10 years based on its proven and probable gold 
reserves of 3012000 ounces
pg
 more information on page 24
pg
 more information on page 25
pg
 more information on page 26 annual report and accounts 2012 3
shareholder information financial statements overview performance governance
tulawaka 70 tanzania exploration kenya exploration
t ulawaka consists of a completed open pit with 
an underground access ramp located at the 
bottom of the pit all capital and operating costs 
associated with the t ulawaka mine and net cash 
generated by the mine are divided on a 7030 
basis between abg and mdn inc the process 
plant started to operate using batch processing 
during 2012 and produces doré
t ulawaka has proven and probable gold reserves 
of 16000 ounces and is expected to close in 2013
abg’s tanzanian exploration programme 
focuses primarily on advancing our organic 
growth projects in and around our existing 
operations as well as advancing important 
regional exploration programmes at north mara 
and nyanzaga our primary greenfield project in 
t anzania core brownfield exploration projects 
include the bulyanhulu cil expansion 
bulyanhulu upper east expansion gokona 
expansion and nyabirama expansion where 
practicable we also explore opportunities to 
develop satellite gold deposits such as golden 
ridge to increase production at our 
existing operations
through various joint venture arrangements 
abg holds an interest in a number of 
exploration licences over a land package in 
excess of 2800km
2
 of the highly prospective 
ndori greenstone belt in west kenya the 
licences contain multiple largescale gold 
anomalies in areas of historic colonial mines 
and prospects sporadic historic and current 
exploration activities have identified a large 
number of targets that justify extensive 
followup abg intends to implement a 
systematic and focused gold exploration 
programme in 2013 and beyond to explore 
these opportunities
pg
 more information on page 27
pg
 more information on page 28
pg
 more information on page 32
tanzania
uganda
lake victoria
kampala
tulawaka
buzwagi
bulyanhulu
golden ridge
nyanzaga
west kenya jv
nairobi
kisumu
arusha
mwanza
kenya
north mara 4 wwwafricanbarrickgoldcom
performance
performance highlights
measuring our performance
optimising
our operating efficiencies to optimise production  
from our existing asset base
expanding
through near mine expansion and 
development of advancedstage projects
cash cost per tonne milled is calculated by 
dividing the aggregate of cash costs by attributed 
ore tonnes milled we use it to track cash costs 
against productivity 
gross profit is calculated by taking our 
revenue and deducting cost of sales it is used 
to help monitor costs associated with gold 
production and gold sales and our ability to 
manage such costs it is also used to calculate 
gross profit margin
ebitda is the net profit or loss for the period 
excluding income tax expense finance expense 
finance income depreciation and amortisation 
and impairment charges of goodwill and other 
longlived assets it is a valuable indicator of our 
ability to generate operating cash flow to fund 
working capital and capital expenditures and to 
service debt obligations 
cash cost per ounce sold is calculated by 
dividing the aggregate of cash costs by attributed 
gold ounces sold it is one of the key indicators 
that we use to monitor and manage those factors 
that impact production costs on a monthly basis 
adjusted net earnings per share is 
calculated by dividing adjusted net earnings 
by the weighted average number of ordinary 
shares in issue it serves as an indicator of our 
profitability and is often used to determine share 
price and value 
attributable gold production is the 
aggregate of the group’ s equity interest in gold 
ounces produced from its mines and one of the 
key measures used to track progress made in 
increasing our production levels 
kpis and relevance to strategy
 ebitda was us331 million a 39 decrease 
on 2011 driven by lower revenue and 
increases in direct mining costs 
 cash cost per ounce sold increased to us949 
per ounce sold 37 higher than 2011 as 
a result of lower production and increased 
direct mining costs
 cash cost per tonne milled increased to 
us75 per tonne a 15 increase on 2011 
due to the same factors as those related to 
the increase in cash cost per ounce sold
 gross profit was us285 million a 45 
decrease on 2011 as a result of lower 
revenue increased direct mining costs 
and increased depreciation
 adjusted net earnings per share amounted 
to us257 cents down from us670 cents 
in 2011
 attributable gold production was 626212 
ounces 9 below 2011 production due to the 
lower grade mined at three of our operations 
when compared to 2011
ebitda
1
us’000
us330869
12 11 10
cash cost per 
ounce sold
1
usoz
us949 oz
12 11 10
cash cost per 
tonne milled
1
ustonne
us75 tonne
12 11 10 09 08
gross profit
us’000
us284630
12 11 10 09 08
adjusted net 
earnings 
per share
1
us¢share
us257 centsshare
12 11 10
attributable 
gold production
2
oz
626212oz
12 11 10 09 08
1  ebitda cash cost per ounce sold cash cost per tonne milled adjusted net earnings per share and operating cash flow per share are nonifrs financial performance measures with no 
standard meaning under ifrs refer to nonifrs measures provided as part of the glossary for the full definitions of each measure
with a highquality asset base and solid growth opportunities we are executing a clear strategy of  annual report and accounts 2012 5
shareholder information financial statements overview performance governance
responsible mining
by maintaining our licence to operate through acting responsibly 
in relation to our people the environment and the communities 
in which we operate is central to achieving our objectives
t otal community investment 
represents the amount of money 
that we invest across our corporate 
social responsibility programmes 
including investments made under 
various mine site and regional 
initiatives specific projects 
sponsored by the abg maendeleo 
fund and investments under 
vbiasvbas it helps us to track 
progress made as regards our 
objective to support socio
economic development in our 
operating environment 
t otal reportable injury  
frequency rate trifr tracks all 
employee and contractor reported 
workplace injuries that require 
medical treatment including lost 
time and restricted duty we use it 
to measure progress towards our 
health and safety goal of ensuring 
that every employee goes home 
safe and healthy every day it is 
calculated as total reportable injuries 
multiplied by 200000 then divided 
by total number of hours worked
operating cash flow per share 
is the cash generated from or 
utilised in operating activities 
divided by the weighted average of 
the number of ordinary shares in 
issue it helps to measure our ability 
to generate cash from our business 
t otal shareholder return is the 
return on investment a shareholder 
receives over a specified time 
frame based on our share price 
appreciationdepreciation and 
dividends received it is used to 
compare our performance against 
industry peers
t otal reserves and  
resources is calculated as the total 
of proven and probable reserves 
plus measured indicated and 
inferred resources expressed in 
contained ounces it measures our 
ability to discover and develop new 
ore bodies and to replace and extend 
the life of our operating mines 
growing
through organic greenfield growth  
and acquisitions in africa
 operating cash flow per share was us629 cents down 48 on 2011 
as a result of decreased revenue 
 total shareholder return in 2012 was 124 due to the decrease in 
our share price over the year
 total reserves and resources increased to 32 million ounces of gold 
an approximate 500 thousand ounce increase on 2011 as a result of 
continued progress across exploration drill programmes 
 total community investment was us144 million approximately 95 
higher than in 2011 as a result of our enhanced community investment 
programme and the introduction of the abg maendeleo fund
 trifr for the year was 083 a 30 improvement on 2011 as a result 
of continuous improvement in our health and safety practices
operating cash 
flow per share
1
us¢share
us629centsshare
12 11 10 09 08
total
shareholder 
return tsr

124
12 11 10 09 08 10
0
total reserves
and resources
moz
320 moz
12 11 10 09 08
total community 
investment
us’000 
12 11 10
us14440
total reportable 
injury frequency 
rate
frequency rate
083
12 11 10 09 08
12 11 10
2 production reflects equity ounces which exclude 30 of tulawaka’s production base 6 wwwafricanbarrickgoldcom
chairman’s statement
navigating through challenges
dear shareholders
the past year has been a period of change and readjustment for the board 
and abg as a whole while the financial and operating results for the year 
were disappointing the board has approved a number of initiatives which 
should positively influence future performance 
the year’s most notable event was the decision by barrick to seek a 
purchaser for its shareholding in the company this process and the 
associated due diligence diverted a significant amount of board and 
senior management time and also impacted relations with the tanzanian 
government and local communities although the sale process was 
ultimately unsuccessful there were several positive outcomes in particular 
the intense due diligence process and associated learning have been 
incorporated into several initiatives which were underway prior to the 
offer period as part of a major review of the company’s structure and 
costs culminating in the board’s request for management to perform an 
operational review the key objectives of this are to drive improved 
returns from the asset base and enhance the certainty of performance 
delivery in the future 
on the operations front whilst we fell short of production targets for 
the year as a result of challenges faced in our operating environment 
nevertheless we progressed certain key objectives 
throughout the year we increased our focus on upgrading the production 
potential at bulyanhulu with the advancement of the bulyanhulu cil 
expansion project that will add a further 4050 thousand ounces to annual 
production as well as progressing plans for the development of the upper 
east zone which has the potential to add a further 90 thousand ounces of 
production per annum though the poor performance at the end of the year 
associated with the paste backfill system and a loss of qualified personnel 
in the face of proposed pension legislation changes was disappointing we 
are undertaking a number of actions to prevent a repeat of this and to 
progress this world class asset generally 
new projects such as buzwagi typically take some five years to consistently 
reach full nameplate capacity so it was gratifying to see this mine really 
perform in the last quarter of the year after months of suffering regular 
power interruptions and lower recoveries
north mara experienced certain setbacks in its community engagement 
programme during the prolonged offer period but at the end of the year 
and beginning of 2013 with strong support from local authorities the 
situation improved markedly allowing these programmes to regain 
traction in this context abg is developing a multipronged social 
programme to improve the balance between the illegal miners the local 
communities and the operating constraints of the mine in future this 
will be a key factor in determining the success of the mine the creation 
of community wealth and associated stable employment and improved 
local infrastructure
our efforts to add meaningful reserves to tulawaka during the year were 
unsuccessful and as a result of this we have taken the decision to phase out 
this operation in 2013 
lastly from a growth perspective we have continued to make good 
progress across our brownfield exploration programme and made 
significant additions to our greenfield projects through the acquisition 
of aviva mining kenya limited not only does this provide significant 
additions to our exploration pipeline it also provides the opportunity 
to diversify both abg’s geographical and political exposure
derek pannell 
acting chairman of the board annual report and accounts 2012 7
shareholder information financial statements overview performance governance
final dividend for 2012
while our operational and financial performance in 2012 has been lower 
than the previous year we recognise the importance of rewarding ongoing 
support from our shareholder base for this reason the board has 
recommended that the total dividend for 2012 be maintained at the 2011 
level comprising a final dividend of us123 cents per share such that the 
total dividend payable in respect of 2012 is us163 cents per share
board composition
we saw a number of further changes to the board through the year with 
aaron regent and james cross retiring as nonexecutive directors and 
kelvin dushnisky senior executive vice president and rick mccreary 
senior vice president corporate development joining as barrick 
nominee nonexecutive directors midyear 
following the expiry of the offer period to which abg was subject during 
the latter half of the year the company is now in a position to review 
board composition generally in order to build on the strengths and calibre 
of our existing board members in this regard for a variety of personal 
reasons i have after three years with abg decided not to stand for 
reelection as a director at the forthcoming agm and therefore will also 
step down as acting chairman i would like to thank my fellow directors 
and abg management for their support and friendship during my time 
with abg mr dushnisky will succeed me as chairman to lead the board 
and i am confident that he will provide strong leadership going forward
outlook
looking forward to 2013 abg will continue to look to optimise its 
portfolio and drive returns for all stakeholders through the implementation 
of the operational review undoubtedly the year will bring new 
challenges but i am confident that the company will meet any such 
challenges head on finally on behalf of the board i extend my gratitude 
to all of our employees for their hard work and commitment over the past 
12 months
derek pannell 
acting chairman of the board
12 11 10 09 08 07 06 05 04 03 02 01 00 99 98 97 96 95 94 93 92 91 90
source gfms
industry gold production
metric tonnes
2000
2200
2400
2600
2800
3000
attributable gold 
production oz
626212  
revenues usm 
us1087  
total dividend us¢ 
us163 cents   8 wwwafricanbarrickgoldcom
chief executive officer’s statement
focused on improving returns
“cash flow generation and improving returns 
from our assets form a key part of our 
operational review and we will update on our 
progress throughout the course of 2013 we 
have maintained the 2012 dividend at the 2011 
level reflecting our confidence in the business 
and our commitment to shareholder returns ”
capital allocation
usm
0
100
200
300
400
fy2010 fy2011 fy2012
dividend payments acquistion spend exploration spend
0
overall for abg 2012 was a year where we realised good progress in 
several areas but where we did not meet our core production and cost 
targets w e continued to invest in the ongoing stability of the business and 
our licence to operate this was rewarded with increasing consistency 
in the operational performance at buzwagi as the year progressed and 
improvements in the grade profile at north mara where we also received 
confirmation of the renewal of our mining licences and signed the village 
benefit implementation agreements overall our mining rates for the 
year increased we processed 4 more tonnes through our plants and 
we improved the recovery profile of our operations despite the expected 
decrease in grade we also significantly enhanced our early stage 
exploration portfolio with the acquisition of aviva mining kenya 
limited “ amkl ”
our group production for the year was 9 lower than 2011 with the 
grade driven increase at north mara offset by declines of similar levels 
at our other three operations bulyanhulu was impacted by paste fill and 
equipment availability issues together with the loss of skilled employees 
due to proposed government pension law changes buzwagi saw an 
expected reduction in grade to around its reserve grade although it did 
benefit from improved plant performance later in the year and tulawaka 
operated under batch processing following the exhaustion of surface 
stockpiles these lower production levels together with higher energy and 
maintenance expenses resulted in our cash costs for the year reaching 
us949 per ounce sold as we move into 2013 we start from a strong 
platform with a net cash position of us401 million but we nonetheless 
need to strengthen our focus on reducing costs in order to ensure the 
business can deliver attractive levels of free cash flow generation this will 
form a key part of our ongoing operational review 
greg hawkins
chief executive officer annual report and accounts 2012 9
shareholder information financial statements overview performance governance
beyond the day to day operational challenges of our business for a large 
part of the second half of the year we also dealt with several additional 
factors resulting from the discussions between barrick and china national 
gold with respect to barrick’s majority stake in abg these included a 
detailed due diligence process and site visits as well as other factors such 
as dealing with the uncertainty caused among our employees and also the 
communities in which we operate we implemented a range of measures 
to deal with these additional challenges and were largely successful in 
limiting the disruption to our business with the discussions now 
terminated we need to ensure everyone in the business remains focused 
on delivering the significant potential of our asset base
our share price performance in 2012 was set against a backdrop of 
continuing underperformance by gold equities relative to the underlying 
commodity the key focus from investors has centred on the lack of free 
cash flow leverage in the industry to the gold price either through rising 
operational costs or increasing investment in new projects which do 
not meet hurdle return rates in the three years since abg listed as an 
independent company we have been successful in generating substantial 
free cash flow and have maintained the view that capital returns to 
shareholders are of critical importance with the proposed final dividend 
for 2012 we will have returned in excess of us150 million to shareholders 
over that period and have also invested in two early stage projects which 
we believe have the potential to deliver significant longterm value to the 
business nonetheless during 2012 the increases in our operating expenses 
and in the level of capital we invested in our assets meant that the business 
consumed capital which is not sustainable over the longer term as such 
the board of abg has asked management to conduct a full operational 
review of the business with the aim of recalibrating our operations so as to 
drive improved returns from the asset base whilst enhancing the certainty 
of delivery the review commenced in january 2013
more recently kevin jennings our chief financial officer has given 
notice that he intends to leave abg in order to take up a similar role at 
another mining company whilst we are naturally disappointed to see 
kevin leave us we understand his wish to pursue this new opportunity 
and wish him the very best for his new venture
operating performance
at an individual mine level bulyanhulu remained our largest producing 
asset and is set to remain so with the existing mine plan and the growth 
projects being advanced in 2012 production was 10 lower than in 2011 
as we experienced power supply issues earlier in the year which impacted 
on hoisting capacity while later in the year the delivery of ore to surface 
was reduced by a lack of paste fill availability which led to increased reliance 
on lower grade stopes and a shortage of skilled personnel resulting from 
resignations in the face of proposed changes to pension fund legislation in 
tanzania we have several initiatives in place to deal with these shortterm 
factors in order for bulyanhulu to get back to its expected run rate as 
2013 progresses
at north mara it was pleasing to see the expected increase in production 
levels on the prior year as we accessed the higher grade zones in the 
gokona pit in the second half of the year this reduced the reliance on 
lower grade stockpiles to provide feed to the mill and led to increased head 
grade and a 13 increase in production compared to 2011 operations 
saw some impact from an increase in illegal mining activity during the 
second half of the year but this has now subsided and returned to more 
normalised levels production during 2012 was from the gokona and 
nyabigena pits with operations at the nyabirama pit subject to the 
necessary land acquisitions and relocations which are a key focus for mine 
management in 2013
at buzwagi significant progress was made across both mining and 
processing activities during the year production was 16 below the level 
of 2011 a result of the expected 30 decline in grade as the mine operated 
at close to its reserve grade this impact was slightly offset by operational 
improvements with a 33 increase in total tonnes mined which includes 
a 19 increase in ore tonnes and a throughput increase of 24 site 
management are now firmly focused on ensuring these improvements 
are maintained during 2013
at tulawaka the processing plant operated on batch milling due to the 
lack of sufficient ore to run it full time which was a consequence of relying 
on underground material during 2012 as a result throughput was down 
substantially on 2011 with a corresponding fall in production levels we 
have successfully extended the life of this operation consistently in the last 
three years however as a part of the operational review we have taken 
the decision not to further extend the mine life and to phase out the 
operation in 2013 we are currently starting to implement our closure plan 
for the operation and will engage with our employees as we move through 
this process as a result of this and in combination with the downward 
revision of reserves we have incurred a noncash impairment charge at 
the mine of us445 million for 2012
growth projects
we have continued to make very good progress on our growth projects 
over the year we are progressing the construction of the bulyanhulu cil 
expansion project and the board has approved the ordering of certain 
long lead items required for the acceleration of mining at the upper east 
expansion project at bulyanhulu these two projects will add meaningful 
longterm production to our core operating asset 10 wwwafricanbarrickgoldcom
chief executive officer’s statement continued
key challenges 
and mitigants challenges mitigants
power supply
 unreliable grid power optimising use of backup power
 ongoing review of alternative sources for  
power generation
security  trespass  
and vandalism
 incidences of trespass theft corruption  
and vandalism at operations
 upgrading security infrastructure
 development of security personnel
 progressing dialogue on law and order
community relations
 operational and reputational impact of  
legacy issues as a result of prior management  
of relations with local communities
 continue to build on existing community 
relationships
 abg maendeleo fund
 development of social management plans
land acquisition
 impact of land acquisition cost and delays in 
completing such acquisitions on current mining 
activities particularly at north mara
 engagement with local and central government  
to address land speculation
developing commercial 
mining industry
 challenge of developing and retaining  
a skilled workforce
 continuing investment in training and development
 continued progression of programmes for 
workforce localisation
on our greenfield exploration portfolio we continued to increase the size 
of the nyanzaga resource which now has an inpit resource of over 46 
million ounces “moz” of gold “ au” consisting of 375 moz at 142 gt 
au indicated and 085 moz at 181 gt au inferred we are currently 
finalising the prefeasibility study and expect to take a decision on whether 
to progress to a full feasibility study by the middle of the year
we also acquired an interest in over 2800 square kilometres of under 
explored highly prospective licence areas in kenya for an initial 
consideration of us22 million including exploration funding the 
licences add more than 20 existing targets from grassroots through to the 
drill testing stage into the exploration and development pipeline and will 
be the focus for a significant proportion of our exploration budget in 2013
drilling at north mara has continued to highlight the potential for 
underground development at both the gokona and nyabirama pits and 
we are undertaking the technical tradeoff analysis in order to establish 
how best to sequence the underground potential with the existing open pit 
operations in order to maximise the life of mine return from the mine
government relations
notwithstanding the acquisition of amkl in 2012 the majority of our 
assets and our cash flow remain in tanzania during 2012 we continued 
to build on the constructive dialogue we enjoy with the tanzanian 
government as our operations delivered significant benefits and value to 
our host communities the decision to voluntarily move to a royalty rate 
of 4 from 3 was one that abg instigated but it was also recognition of 
the improved level of cooperation we saw from the tanzanian authorities 
as we solved a range of taxation permitting and licensing issues some 
of which dated from several years back
as we move into 2013 there remains much to be done and it is vital we 
enjoy the ongoing support of the government in these areas across our 
asset base the lack of availability of reliable power is a key issue for us and 
one which is receiving attention at the highest levels within the tanzanian 
government and we look forward to the government delivering on its 
initiatives to alleviate this issue at north mara we have seen good 
support over the last few months in relation to improving law and order 
but need to resolve a number of land access issues to ensure we have the 
appropriate footprint for our operations and we look forward to the 
government’ s support in achieving this elsewhere we are encouraging the 
government to help resolve the pension fund issue which has impacted 
our workforce from a taxation perspective we are working closely with 
the appropriate authorities to ensure we minimise the level of working 
capital tied up in indirect tax payments which are recoverable under the 
terms of our mineral development agreements
licence to operate
from an operational perspective abg has a high quality and well 
invested portfolio of assets which positions us strongly for the long term 
however without the accompanying licence to operate and a stable 
working relationship with all stakeholders the quality of our assets could 
be significantly impacted for this reason the achievements we have made 
with the government and with our host communities on issues relating to 
our operating environment are of key importance we have benefited from 
a full year of operation of the abg maendeleo fund which has supported 
a range of projects across our operations throughout the year annual report and accounts 2012 11
shareholder information financial statements overview performance governance
in terms of the individual operations the key challenges are centred on 
north mara and we have made significant progress in 2012 in order to 
secure the longterm future of the mine in addition to the signing of 
vbias with the local communities we have invested 39 of the abg 
maendeleo fund’ s annual expenditure towards new infrastructure around 
north mara including rehabilitating the local health clinic the provision 
of clean water and the launch of a major school desk programme 
w e were also pleased to receive the renewal of the special mining licences 
“smls” at north mara the renewals are on the same terms and 
conditions as the previous licences and are both for a period of 15 years 
the original smls were issued in february 2000 and had expired in 
september 2011 since which time the mine continued to operate on the 
same basis due to the rollover provisions contained in the tanzanian 
mining act
the life of mine footprint continues to be a challenge at north mara 
as land acquisition is increasingly expensive due to the high levels of 
speculation this has led to the ongoing suspension of operations in the 
nyabirama pit we are engaging with local and central government in 
order to find a solution during the year we received waste rock permits 
necessary for the immediate operations of the site and we continue to 
apply for permits to meet ongoing requirements
we continue to work with the relevant authorities to progress the lifting of 
the environmental protection order at north mara in order to be able to 
discharge water nemc the environmental regulator has recently visited 
the operation for a final review and we are now awaiting their approval
outlook
abg enters 2013 with a highquality portfolio of assets and significant 
financial strength as a result of our net cash position of over us400 
million however we did not generate acceptable returns from the 
business in 2012 and with the production level forecast for this year we 
need to implement efficiencies in our operating cost base as well as 
applying capital more selectively to the business following the heavy 
investment made over the past three years these objectives will form the 
key pillars of our operational review together with a detailed assessment 
of our life of mine plans to establish the optimal mining rates as we move 
forward our operating environment has evolved substantially in recent 
years as have our assets and we need to ensure the organisation is 
properly set to maximise returns against this backdrop
at the mine level our expectation is for broadly similar production levels 
to 2012 at our buzwagi and north mara operations with lower production 
at bulyanhulu as we implement our recovery plan at the mine through the 
first half of the year and tulawaka as it comes to the end of its life in the 
second quarter of the year
as a result of our operational review we are targeting reductions to our 
cash cost per ounce as we go through the year while we estimate the cash 
cost per ounce for the year including royalties will be between us925
975 per ounce sold including a reduction of us120 per ounce sold due 
to a change in accounting for waste stripping ifric 20 we anticipate 
the run rate will be below this level by the end of the year 
with us135 million of capital being allocated to expansion projects 
principally at bulyanhulu we have set our sustaining capital budget at 
us100 million including land and we have allocated us210 million to 
capital development inclusive of deferred stripping the adoption of ifric 
20 which recognises eligible production phase deferred waste stripping 
costs as assets on a stagebystage basis as opposed to the previous single 
pit basis will increase our deferred stripping capitalisation by 
approximately us70 million over 2012
overall our key objectives for 2013 are
 achieving attributable group production of between 540000–
600000 ounces
 maintaining total cash cost including royalties of between us925–
us975 per ounce sold
 total capital expenditure of us445 million comprising us100 million 
of sustaining capital us210 million of capital development inclusive 
of deferred stripping and us135 million of expansion capital
 completing the operational review and implementing outcomes from 
the process
 substantially completing construction planned for the bulyanhulu 
cil expansion
 obtaining board approval for the bulyanhulu upper east expansion
 optimising group throughput and recoveries
 achieving growth in our overall resource base
 improving further our safety record
 continuing the development of our sustainability practices and
 continuing our disciplined focus on opportunities for strategic 
acquisitions throughout africa
finally i would like to thank all of my colleagues for their commitment 
enthusiasm and hard work throughout what has been an important year 
in the development of our business i would also like to thank our board 
for their unwavering support their wise counsel and their commitment 
throughout the year
greg hawkins 
chief executive officer 12 wwwafricanbarrickgoldcom
operational review
over the past three years our operating environment has seen significant change which has had an impact both on the production 
levels at our operating mines as well as on our overall cost of production as a result we have commenced a full operational 
review of the business and have identified a number of areas where we can improve both the cost profile as well as the deliverability 
of production t ogether with a reduction in the overall level of capital applied to the business we believe that the current base 
of production can deliver attractive returns which will be enhanced by our portfolio of organic growth projects which will start 
delivering incremental production from next year w e will periodically report on the progress of the operational review throughout 
the year as a part of our results releases 
the specific initiatives which will form th e core of the operational review are 
3 organisational structure
initial results available in 6 months
our production and cost profile have changed significantly and we will 
now ensure that we rightsize the business in order to fit our anticipated 
production levels and new operating paradigm with this in mind a zero 
based review is being undertaken of the entire organisation in order to 
ensure that we have the appropriate staffing levels mix of employees and 
contractors and the optimal combination of international and national 
employees in order to meet our objectives without impacting production 
further to this we will also simplify the corporate structure in order to 
improve the responsiveness of the organisation
4 corporate overhead cost reductions 
initial results available in 3 months
as a part of the review of our organisational structure we are reviewing 
opportunities to reduce our corporate overheads as we align the corporate 
support and service model to match the business model to take forward 
into 2014 aside from labour efficiencies we see key opportunities for 
improved efficiencies within our community health environment 
safety and security function model and in a reduction in travel and 
accommodation expenses
1 operating cost reductions 
initial results available in 6 months
aside from labour our key costs drivers over the past few years have been 
power maintenance and consumable usage whilst the increase in diesel 
usage across the group has been necessary to ensure production outcome 
it has led to increased cost specifically at buzwagi we continue to 
investigate opportunities to reduce the impact of our reliance on the 
electricity grid including shortterm opportunities such as the installation 
of capacitors to reduce dips and voltage swings and longerterm alternative 
energy solutions optimisation of management operating systems and 
supply chain practices are expected to provide further reductions in our 
maintenance and consumable cost levels
2 capital discipline
over us50 million reduction achieved in 2013 
we have maintained a disciplined approach to capital expenditure over 
the past three years but have still invested over us750 million into the 
business in order to optimise our asset base this investment provides 
us with wellinvested modern mines such that we should be able to 
substantially lower our capital budget going forward our 2013 capital 
expenditure guidance indicates an initial reduction of over us50 million 
from 2012 sustaining capital levels we are reassessing all of our future 
capital expenditure to identify further opportunities to cut capital 
expenditure further into 2014 and beyond  financial statements overview performance governance shareholder information
annual report and accounts 2012 13
5 mine planning deliverability
initial results available in 6 months
on a mine site level we are in the early stages of the review process as 
part of this process we are reviewing and optimising the life of mine plans 
at each of the assets to prioritise driving returns and cash flow and are 
seeking to improve both productivity and efficiency at each of the assets 
through improved organisational structure and training 
key focus areas for further asset optimisation are 
 at our flagship asset bulyanhulu we are conducting a number of 
studies to optimise the ore extraction schedule plan for the right 
infrastructure to support the ore extraction and transport and 
importantly make sure we have a clear understanding of the most 
efficient mining method to be deployed for the life of mine whilst we 
have some temporary issues to resolve the mine represents our best 
leverage to generate high return ounces given the scale and quality 
of its resources 
 at north mara as a part of the review we are assessing all options for 
future development of the mine including the potential for underground 
development w e have overcome significant legacy issues and our social 
licence to operate has been regained but as part of this exercise we will 
assess a range of potential mine plans based around the ability to access 
land in order to satisfy the life of mine requirements for the existing three 
open pits in conjunction with the mine development review we will 
continue to work with regional and governmental departments in order 
to build on the actions we have implemented over the course of 2011 and 
2012 to strengthen further our social licence to operate 
 at buzwagi now that we have stabilised mining and processing rates 
we are continuing to review options to improve operating efficiencies 
and thereby the profitability of this operation our key focus in this 
regard is to review ways in which we can reduce buzwagi’s reliance on 
diesel power which results in high operating costs and the reduction 
of required levels of sustaining capital there are clear opportunities 
to improve sustaining capital investment levels given that we are now 
through the bulk of the catch up capital investment required in order 
to stabilise production levels over the past three years
 at tulawaka as a result of our renewed focus on generating returns 
rather than ounces we have decided not to further extend the life of 
the mine beyond 2013 engagement with our employees will be 
undertaken as we embark on this process and we will focus efforts on 
the redeployment of the mine’s skilled workforce to our other assets 
and the progression of closure planning options for divestment will 
also be considered  14 wwwafricanbarrickgoldcom
our business model focuses on the creation of a high performance organisation  
something that is fundamental for the realisation of our longterm strategy
a model to deliver performance
expand
through near mine projects
grow
through greenfield opportunities
optimise
our asset base
people  
management
industry 
expertise
quality 
asset base
governance  
risk management
licence
to operate
responsible mining
strong financial performance
operational excellence
strategy and business model annual report and accounts 2012 15
establishing solid foundations
at the heart of our business model lie the foundations which 
we believe embody our commitment to excellence t ogether 
these foundations form the base structure for the creation of 
a high performance organisation
industry expertise
we believe that industry and regional knowledge and expertise are 
critical in order to drive performance as such we place a premium on 
our existing experience of acquiring financing and building mines in 
t anzania and the collective experience of the mining industry and the 
african region held between our board members and 
management team
quality asset base
our longlife highgrade reserve and resource base and the expansion 
opportunities that are available through near mine projects at our 
existing operations provide us with a solid basis on which to develop 
and grow our business within the african gold mining industry
governance and risk management
effective governance and controls are crucial for the realisation of 
our business strategy for this reason our business management 
framework allocates responsibilities for the monitoring review 
and management of our business and strategy throughout our 
organisational structure ensuring that accountability for performance 
is shared across our governance functions w e use the same approach 
for risk management to ensure that business risks are identified 
mitigated and controlled as appropriate for our operating environment
licence to operate
our business conduct reflects our commitment to excellence for the 
benefit of all stakeholders as a whole we ensure that our community 
relations environmental health and safety human resources and 
security functions work closely together and with the management 
teams at each of our operations to ensure that all key components of 
responsible mining are addressed throughout the exploration and 
mining cycle and across all of our locations
people and management
an organisation is only as good as its people it is for this reason that  
we are committed to promoting and developing the skill set of our 
workforce for the benefit of our business and our industry in general we 
ensure that we fairly compensate our employees for their contributions 
provide meaningful performance feedback to them and offer them 
professional development and training opportunities to develop employee 
potential and reward best performance
developing key strengths
when combined the foundations of our organisation create 
our core standards which in turn create and develop key 
strengths in operational and financial performance they 
also safeguard and help to promote our responsible mining 
practices all of these factors are fundamental qualities of  
a high performance organisation
operational excellence
we believe that the alignment of our operational and governance 
standards with industry and peer group best practice provides us with the 
framework to achieve the highest possible levels of productivity safety and 
efficiency within our operations all being components of operational 
excellence that drives business performance
strong financial performance
our business and operational processes are focused on the achievement 
of targets while maintaining a strict cost discipline optimising capital 
efficiency and maintaining a conservative balance sheet this supports 
the production of strong financial results required for the development 
of our business
responsible mining
by mining in a responsible manner for the benefit of our people the 
environment and the host countries in which we work we are able to 
maintain our reputation as a good corporate citizen in the eyes of all 
relevant stakeholders in turn this allows us to progress our business  
on the basis of common expectations and objectives  abg group progress in 2012
 increased production levels and improvements in the grade profile at 
north mara following the access to higher grade zones in the gokona 
pit in the second half of the year
 improvements in recovery rates at north mara as a result of the positive 
impact of the gold plant upgrade
 continued progress in mining and processing activities at buzwagi 
increasing consistency in the operational performance of this operation 
particularly during the second half of the year
 commencement of operational initiatives at bulyanhulu to address 
paste fill delays lower than planned availability of high grade stopes and 
lower equipment availabilities
abg group priorities for 2013
 finalising and implementing our operational review 
 resolve paste fill plant issues increase availability of higher grade stopes 
and stabilise workforce at bulyanhulu 
 sustain increased level of mining rates and continue to operate at 
nameplate capacity in the process plant at buzwagi
 maintain increased mining rates continue to deliver improved 
recoveries and progress land acquisitions and relocations at north mara 
 harvest high grade pillars progress discussions on closuredivestment 
options for tulawaka 
optimise
the exisiting asset base
16 wwwafricanbarrickgoldcom case study gold plant project at north mara
north mara has been undergoing a substantial optimisation programme 
both in the mining operations and in the process plant improvements in 
our mining fleet and practices have positioned us to be able to efficiently 
move increased volumes of tonnes in 2013 in tandem with this we have 
invested over us25 million into process plant infrastructure in order to 
improve recovery rates something which should increase production and 
help to mitigate cash cost increases 
the gold plant upgrade has involved improving the grinding efficiency of 
the mills and adding oxygen into the circuit to improve the responsiveness 
of ore to cyanide leaching we have converted two tailings thickeners into 
preleach thickeners and have also installed additional leach tanks so that 
ore may be exposed to cyanide for a longer time period as part of 
processing and treatment procedures the increased residence time will 
allow for improved recoveries and a reduction of gold residue in tailings
we expect the project to increase gold recoveries by up to 4 as a result 
of the combined measures in addition to the improved recovery rates  
as a part of the project we installed further cyanide detoxification capacity 
in line with compliance standards under the international cyanide code 
and our commitment to manage our tailings responsibly
  go online to find more information wwwafricanbarrickgoldcom
annual report and accounts 2012 17 18 wwwafricanbarrickgoldcom
abg group progress in 2012
 engineering procurement and construction contract awarded and 
project financing arranged for bulyanhulu cil expansion project
 expansion of the scope of the bulyanhulu upper east expansion 
project to include reef 2 as well as reef 1
 continued progress of drill programmes around the nyabirama 
open pit at north mara 
 gokona underground resource at north mara increased to 
approximately 900 thousand ounces of gold
abg group priorities for 2013
 substantially complete construction of bulyanhulu cil 
expansion project 
 receive board approval to proceed with bulyanhulu upper 
east expansion project and continue exploration drilling to expand 
reef 2 resource
 complete feasibility study for the gokona expansion at north mara
 complete the nyabirama resource update at north mara
expand
through near mine projects annual report and accounts 2012 19
case study bulyanhulu upper east expansion
as part of our drive to expand our assets abg has been examining 
options to increase mining rates at the bulyanhulu mine to bring 
production more into line with the scale of its resource base the 
acceleration of mining from the upper east zone is one of our key 
expansion projects aimed at achieving this 
previously the bulyanhulu upper east expansion project was solely based 
on the 12 million ounces of gold reserves located in reef 1 of the upper 
east zone w e have now completed a positive scoping study to incorporate 
an additional 900 thousand ounces of gold which currently sit in reserves 
in reef 2 of the upper east zone we have ordered certain long lead items 
and are now progressing with further technical studies to explore this 
opportunity if these studies are successful we should be able to progress 
the project so as to commence gold production from the upper east zone 
in late 2014
the incorporation of reef 2 significantly enhances the bulyanhulu upper 
east expansion project which is now expected to produce 90 thousand 
ounces of gold per annum once fully ramped up and will deliver life of 
mine production of 19 million ounces of gold over the next 20 years 
the project is expected to require approximately us100 million of 
preproduction capital to be spent in 2013 and 2014
  go online to find more information wwwafricanbarrickgoldcom grow
abg group progress in 2012
 completion of the west kenya jv project acquisition
 expansion of nyanzaga inpit resource to in excess of 46 million ounces 
of gold and successful completion of scoping study for the project 
 completion of metallurgical drilling programme to update resource 
model at golden ridge 
 progression of exploration drill programme at dett prospect
abg group priorities for 2013
 continue regional grassroots exploration across west kenya jv project
 advance drill testing stage targets around the kakamega dome camp 
of the west kenya jv project
 delineate potential for new discoveries around the lake zone camp of 
the west kenya jv project
 complete the prefeasibility study for the nyanzaga project and continue 
drill programmes to explore underground potential for this project
through greenfield opportunities and acquisitions in africa
20 wwwafricanbarrickgoldcom case study west kenya joint venture project
in late 2012 we acquired the entire issued share capital of aviva mining 
kenya limited “ amkl ” the assets of which include a 51 interest in 
a joint venture with lonmin plc which may be increased to 75 subject to 
satisfaction of certain conditions and a right to earn up to a 75 interest 
in a second joint venture with advance gold corporation together these 
joint venture arrangements provide abg with an interest in a number of 
exploration licences located within the ndori greenstone belt in west 
kenya this acquisition represents our first step in expanding our footprint 
outside of tanzania and is an important addition to the grassroots and 
target delineation segments of our exploration pipeline as we look to 
secure medium to longterm growth and diversification of our asset base
the ndori greenstone belt is a highly prospective area and one of several 
greenstone belts in kenya it has multiple styles and types of gold prospects 
that are comparable to those found in the lake victoria greenstone belts 
in tanzania the licences held under the kenyan joint venture structures 
contain multiple largescale gold anomalies in areas of historic colonial 
mines and prospects and cover a land package in excess of 2800 square 
kilometres sporadic historic and current exploration activities have 
identified a large number of targets that justify followup and we intend to 
implement a systematic and focused gold exploration programme in 2013 
and beyond
in addition to the interests in the exploration licences and properties the 
acquisition of amkl provides abg with a strong kenyan based exploration 
team continuity of project history and knowledge as well as existing local 
and country government and ministry relationships
  go online to find more information wwwafricanbarrickgoldcom
annual report and accounts 2012 21 22 wwwafricanbarrickgoldcom
responsible mining
abg group progress in 2012
 achieving a 30 improvement in our group t otal reportable injury 
frequency rate “trifr ” 
 obtaining bulyanhulu’ s recertification under the international cyanide 
management code 
 execution of village benefit agreements and village benefit implementation 
agreements with north mara local communities 
 improving national employment levels by 2 to 91 of our 
operations’  workforce 
 increasing training on v oluntary principles on security and human rights 
across abg stakeholders
abg group priorities for 2013
 achieving a further 10 improvement in group trifr 
 completing the commissioning of the north mara w ater treatment 
plant for the lifting of the environment protection order and obtaining 
a discharge permit for the site 
 implementation of social management plans at buzwagi and north 
mara and development of a social management plan for bulyanhulu
 achieving a workforce localisation target of 93 across our operations
 progressing dialogue on law and order particularly at north mara 
with our wider stakeholder group
maintaining our licence to operate annual report and accounts 2012 23
case study sungusungu clinic
north mara is located in a remote part of tanzania and as such 
infrastructure in the region is limited in line with our commitment to 
community development throughout the year we have continued to invest 
in upgrading local infrastructure to help improve transportation links and 
access to water education and healthcare one of our core community 
infrastructure projects is the rehabilitation of the sungusungu clinic in 
nyamongo one of the villages located in the vicinity of the north mara 
mine the clinic is the sole source of local medical care outside of the mine 
for those living in the mine’s seven local communities unfortunately the 
clinic is not currently eligible for central government funding due to its 
size so abg’s support is critical
as the first phase of the upgrade abg has invested approximately 
us350000 in the clinic in order to refurbish maternity and paediatric 
wards laundry facilities and basic amenities and to construct an outpatient 
block and further wards in addition to this we are improving access to 
power and water by installing additional water wells and a connection to 
the national electricity grid for the time being we have installed a diesel 
generator and we are trucking clean water from the mine to the clinic to 
provide for key utilities while we complete these elements of the project
in early 2013 we will commence the second phase of the clinic upgrade for 
which we aim to invest a further us200000 in clinic improvements the 
investment will principally be used to further equip the hospital with vital 
diagnostic equipment with the aim of bringing the clinic up to a national 
standard in order for it to receive ongoing government funding and provision 
of healthcare professionals
  go online to find more information wwwafricanbarrickgoldcom operating review
contribution to  
group ounces
38
 
trifr
102
total reserves and 
resources moz
17 45
bulyanhulu
operating performance 
bulyanhulu produced 236183 ounces in 2012 10 lower than in 2011 
as a result of paste fill delays lower than planned availability of high grade 
stopes and lower equipment availabilities resulting in reductions to ore 
tonnes hoisted and head grade mined whilst corrective actions are 
underway progress has been slowed by potential changes to tanzanian 
pension legislation which has led to significant numbers of long serving 
tanzanian employees resigning these included a number of skilled 
underground mining personnel as well as maintenance staff dealing with 
improving mobile equipment availabilities with the end of the offer 
period we are now actively hiring as well as rotating staff from elsewhere 
in our operations in order to minimise further impacts in 2013
head grade of 80 gt was lower than in 2011 85 gt as a result of paste 
fill delays limiting access to the primary long hole stopes leading to 
increased tonnes being mined from lower grade stopes the lower mined 
grade together with lower recoveries in the cil circuit led to a recovery 
rate of 906 
gold ounces sold for the year were 235410 ounces which was broadly 
in line with the production figure but 13 lower than in 2011 
copper production for the year of 61 million pounds was 20 lower than 
in 2011 this was primarily due to mining of lower copper grade areas and 
lower recoveries 
cash costs for the year of us803 per ounce sold were 32 higher than in 
2011 us610 cash costs were negatively impacted by lower production 
levels and the resultant lower coproduct revenue increased maintenance 
costs driven by an increase in unplanned mining and processing related 
breakdowns increased energy costs due to increased tanesco rates and 
consumption and increased ga charges driven by higher camp costs 
and aviation charges this was slightly offset by increased capitalised 
mining expenditure cash cost per tonne milled increased to us187 
in 2012 us156 in 2011 as a result of the costs increase outlined above
capital expenditure for the year of us1176 million was 23 higher 
than in 2011 us954 million mainly driven by expansion capital and 
increased underground development key capital expenditure for 2012 
included capitalised underground development us456 million the 
cil expansion project us261 million and mining equipment 
us106 million 
key mine statistics
y ear ended 31 december
2012 2011
underground ore tonnes hoisted kt 959 1048
ore milled kt 1012 1056
head grade gt 80 85
mill recovery  906 912
ounces produced oz 236183 262034
ounces sold oz 235410 269981
cash cost per ounce sold usoz 803 610
cash cost per tonne milled ust 187 156
copper production klbs 6102 7675
copper sold klbs 5895 7716
capital expenditure us’000 117569 95432
the statistical information presented includes nonifrs measures an explanation of 
nonifrs measures is included as part of the glossary
2013 priorities
 resolve paste fill plant issues 
 increase availability of higher grade stopes 
 stabilise and rebuild national workforce
 progress cil expansion and upper east 
expansion projects
24 wwwafricanbarrickgoldcom contribution to  
group ounces
26
 
trifr
057
total reserves and 
resources moz
344
buzwagi
operating performance 
buzwagi produced 165770 ounces in 2012 16 lower than in 2011 as a 
result of the reversion to mining at reserve grade for a significant part of 
the year with production further impacted by plant operational factors 
leading to decreased processing rates in the first half of the year with the 
installation of diesel backup power and improved plant operational 
availability and efficiencies in the second half of the year 2012 mill 
throughput increased by 24 compared to 2011 in addition there was 
a significant increase in tonnes mined compared to 2011 as a result of a 
larger mobile fleet and improved equipment availability we expect the 
improvement in both mining and milling rates to continue through 2013 
gold ounces sold decreased by 23 to 155322 ounces 200518 ounces in 
2011 falling below production by 6 due to a delay in sales as a result of 
the backended nature of production in the fourth quarter
copper production for the year of 68 million pounds was 6 lower than in 
2011 this was primarily due to the mining of lower copper grades in 2012 
cash costs for the year were us1087 per ounce sold us691 in 2011 
cash costs have been affected by lower production and resultant lower 
coproduct revenue and increased diesel consumption driven by a 
requirement to self generate electricity increased consumable usage 
and contract services costs due to increased maintenance and repair 
contractor “marc” charges were offset by increased capitalised 
stripping costs due to the waste stripping undertaken
cash cost per tonne milled of us45 decreased slightly from 2011 as 
increased throughput was offset by an increase in the direct mining 
cost base 
capital expenditure of us981 million was 18 higher than in 2011 
us832 million primarily due to deferred stripping key capital 
expenditure for 2012 included capitalised deferred stripping us311 
million mine fleet investments us198 million and investments in 
the process plant’s detoxification process us172 million included in 
capital expenditure is a noncash reclamation adjustment which amounted 
to us105 million
key mine statistics
y ear ended 31 december
2012 2011
tonnes mined kt 28563 21534
ore tonnes mined kt 4223 3545
ore milled kt 3715 2993
head grade gt 16 23
mill recovery  873 880
ounces produced oz 165770 196541
ounces sold oz 155322 200518
cash cost per ounce sold usoz 1087 691
cash cost per tonne milled ust 45 46
copper production klbs 6773 7201
copper sold klbs 5628 7353
capital expenditure us’000 98054 83203
the statistical information presented includes nonifrs measures an explanation of 
nonifrs measures is included as part of the glossary
2013 priorities
 continue to operate at nameplate 
capacity in the process plant 
 sustain increased level of mining rates
 optimise the power mix for the mine
 minimise additional capital investment
annual report and accounts 2012 25
shareholder information financial statements overview performance governance contribution to  
group ounces
31
 
trifr
071
total reserves and 
resources moz
555
operating performance 
north mara produced 193231 ounces in 2012 an increase of 13 on 
2011 as a result of improved grade and recoveries partially offset by 
ore milled being 9 lower than in 2011 as throughput was negatively 
impacted by unplanned maintenance in the second quarter of 2012 gold 
ounces sold amounted to 186600 ounces for the year 9 higher than in 
2011 due to the increase in production but trailing production by 3 due 
to the backended nature of production in the fourth quarter of the year
head grade of 25 gt improved by 19 on 2011 as a result of increased ore 
tonnes mined and mine grade during the second half of the year leading to 
a reduction in mill feed from the lower grade stockpiles recoveries of 854 
increased 6 on 2011 primarily as a result of the positive impact from the 
completed gold plant upgrade 
we focused on the continuation of the substantial waste stripping 
programme in both the gokona and nyabirama pits throughout the year 
in order to open up higher grade zones for future years mining in the 
gokona pit was adversely impacted by delays in the issuing of paf waste 
dumping permits during the first half of the year and delays in relocating 
villagers surrounding the nyabirama pit led to the suspension of mining 
in the pit from the second quarter as a result total tonnes mined of 184 
million tonnes were 16 lower than in 2011 ore tonnes mined amounted 
to 17 million tonnes a reduction of 24 on 2011 23 million tonnes 
cash costs for the year were us965 per ounce sold compared to us810 
in 2011 direct mining costs were in line with 2011 with increases in 
labour ga and maintenance offset by lower contracted services charges 
due to the move from a marc to an owner maintenance model however 
lower than planned capitalised mining and negative inventory valuation 
changes drove an increase in overall cash costs cash cost per tonne milled 
increased to us65 in 2012 us45 in 2011 mainly as a result of the 
decrease in throughput capital expenditure for the year of us911 
million was 26 lower than in 2011 us1231 million due to lower 
expansion capital key capital expenditure for 2012 included capitalised 
deferred stripping us257 million mine equipment us105 million 
infrastructure investment us145 million and capitalised exploration 
drilling costs us52 million included in capital expenditure is a 
noncash reclamation adjustment which amounted to us75 million
the special mining licences for north mara were renewed during the 
fourth quarter on the existing terms for a 15 year period this renewal 
supports our longterm planning and will assist in unlocking value from 
the asset base 
the life of mine footprint continues to be a challenge at north mara due 
to increases in land acquisition costs driven by high levels of speculation 
this has led to the ongoing suspension of operations in the nyabirama pit 
we are engaging with local and central government in order to find a 
solution during the year we received paf waste dump permits necessary 
for the immediate operations of the site and we continue to apply for 
permits to meet ongoing requirements
we continue to work with the relevant authorities to progress the lifting of 
the environmental protection order at north mara in order to be able to 
discharge water nemc the environmental regulator has recently visited 
the operation for a final review and we are now awaiting their approval
north mara
operating review continued
key mine statistics
y ear ended 31 december
2012 2011
tonnes mined kt 18391 21808
ore tonnes mined kt 1711 2254
ore milled kt 2786 3070
head grade gt 25 21
mill recovery  854 806
ounces produced oz 193231 170832
ounces sold oz 186600 170625
cash cost per ounce sold usoz 965 810
cash cost per tonne milled ust 65 45
capital expenditure us’000 91096 123146
the statistical information presented includes nonifrs measures an explanation of 
nonifrs measures is included as part of the glossary
2013 priorities
 maintain increased mining rates 
 continue to deliver improved recoveries
 progress land acquisitions and relocations
 finalise lifting of environmental  
protection order
 continue to improve social licence  
to operate
26 wwwafricanbarrickgoldcom contribution to  
group ounces
5
 
trifr
138
total reserves and 
resources koz
175
operating performance 
tulawaka’s attributable gold production for the year was 31028 ounces 
compared to 58871 ounces in 2011 the decreased gold production 
level resulted from lower mined grade from underground stopes and 
the application of batch milling in order to drive plant efficiencies gold 
ounces sold were broadly in line with production 
cash costs for the year were us1269 per ounce sold compared 
to us727 in 2011 this cost increase was mainly due to the lower 
production base and the impact of lower capitalised mining these were 
slightly offset by lower sales related costs due to lower sales ounces
cash cost per tonne milled increased to us219 in 2012 us146 in  
2011 primarily as a result of a lower mill throughput due to the batch 
milling campaign 
capital expenditure for the year of us246 million was 22 lower than 
in 2011 us317 million key capital expenditure for 2012 included 
capitalised exploration drilling and underground development costs 
us102 million relating to mine life extension evaluations and 
infrastructure investments into the tailings storage facility security and 
accommodation us42 million which will form part of the closure 
plan included in capital expenditure is a noncash reclamation adjustment 
which amounted to us13 million
following the decision to phase out this operation in 2013 and in 
combination with the downward revision of reserves we have recognised 
a noncash impairment charge of us445 million in respect of tulawaka 
given the current mine plan and limited mine life this is a result of the 
mine life net carrying value exceeding the recoverable amount by us410 
million and the impairment of capitalised exploration costs relating to the 
mojamoja project of us35 million
tulawaka
key mine statistics 70
y ear ended 31 december
2012 2011
underground ore tonnes hoisted kt 124 144
open pit ore tonnes mined kt 43 22
open pit waste tonnes mined kt 222 497
ore milled kt 185 291
head grade gt 55 66
mill recovery  955 951
ounces produced oz 31028 58871
ounces sold oz 31920 58415
cash cost per ounce sold usoz 1269 727
cash cost per tonne milled ust 219 146
capital expenditure us’000 100 24588 31652
the statistical information presented includes nonifrs measures an explanation of 
nonifrs measures is included as part of the glossary
2013 priorities
 harvest high grade pillars and close
divest operation
 implement closure plan in conjunction 
with the tanzanian government
 redeploy employees within our 
other operations 
annual report and accounts 2012 27
shareholder information financial statements overview performance governance exploration and development review
at bulyanhulu board approval was granted for the cil expansion project 
the project has progressed well with site works now underway project 
commissioning is targeted for early 2014 additionally the bulyanhulu 
upper east expansion project has now been expanded in scope to include 
both of reef 1 and reef 2 and has the potential to add an average of 90 
thousand ounces of gold per year to production over the life of mine
greenfield exploration
greenfield exploration is a key value driver and when successful it enables 
the business to generate future production ounces at competitive cost 
therefore significant focus in 2012 has been placed on identifying new 
greenfield exploration opportunities throughout africa to strengthen our 
exploration portfolio collectively the greenfield exploration programmes 
we have undertaken have further strengthened our portfolio of exploration 
projects with the potential to add significantly to our production profile 
over the medium term
we have made good progress at our nyanzaga project throughout the 
year as noted above elsewhere in tanzania during the year wide zones 
of lower grade mineralisation have been intersected at the dett prospect 
45 kilometres west of the north mara mine current drilling is targeting 
higher grade zones within this mineralised system in order to further 
explore its potential 
resource growth
total gold reserves and resources moz
2010
2011
2012
exploration
and evaluation 
costs usm
456
481
271
0 30 35 25 20 15 10 5
bulyanhulu buzwagi north mara tulawaka nyanzaga golden ridge
progressing growth opportunities
overview of 2012 activities 
during 2012 us290 million of exploration and evaluation activities were 
expensed with a further us166 million of capitalised exploration and 
evaluation activities taking place key highlights include the addition of 
significant resource ounces at nyanzaga successful drilling results from 
brownfield exploration programmes at north mara and the acquisition 
of the west kenya jv project 
in early 2012 we announced an increase of over 3 million ounces of 
indicated and inferred inpit resources at nyanzaga and in april following 
further successful drilling of the kilimani zone we added approximately 
500 thousand ounces of gold to this resource the project subsequently 
returned a positive scoping study and has been moved into a prefeasibility 
study exploration drilling in 2013 at nyanzaga will continue to target the 
extensions of high grade zones intersected by deep drilling
at the north mara mine brownfield exploration drilling programmes 
were completed below the gokona and nyabirama open pits targeting 
significant resource expansions with the aim of expanding the current 
open pits andor developing underground resources both programmes 
achieved their aims with a tradeoff analysis being completed to 
determine how we proceed with scheduling and mining the expanded 
resources at gokona and a scoping study now underway at nyabirama 
overall 2012 was a successful year of execution and delivery for both the exploration and projects teams 
across our greenfield and brownfield exploration and development projects
ongoing projects
greenfield
 nyanzaga
 dett
 west kenya jv
brownfield
 bulyanhulu
 – upper east expansion
 –  buly reef extensions  
east  west
 north mara
 – gokona expansion
 –  nyabirama expansion
28 wwwafricanbarrickgoldcom in addition initial exploration programmes conducted on the west kenya 
jv project following completion of our acquisition of amkl have already 
started to yield positive results at several prospects within the 2800 square 
kilometre land package in 2013 we will continue our focus on advancing 
grassroots and other early stage prospects on this project to drill ready 
status at the same time we will continue to advance opportunities at drill 
testing and advanced exploration stages of the exploration pipeline toward 
tangible resource projects 
brownfield exploration
in 2012 near mine brownfield exploration successfully identified 
extensions to known resources the main focus was gokona and nyabirama 
depth extensions at north mara where drilling returned excellent results 
from infill and stepout resource drilling at gokona we intersected 
significant high grade mineralisation up to 300 metres below the current 
final open pit depth further supporting the opportunity for a significant 
high grade underground resource 
at bulyanhulu we undertook a small programme of infill drilling around 
the planned reef 2 upper east underground the drilling was successful at 
delineating extensions to known high grade shoots around the margins of 
the existing resource as well as confirming grade continuity within 
reserve areas further drilling is scheduled for 2013 to expand the reef 2 
resource in deeper areas of the mine to enhance future planning and life 
of mine scheduling 
in 2013 there will be a significant focus on realising resource expansions 
around our bulyanhulu and north mara operations
exploration pipeline
production
8
1
2
6
2
26
10
7
1
grassroots programme
t arget delineation
drill t esting
advanced exploration 
 resource development
scoping  feasibility studies
t a nza nia  
5969 km
2

kenya  
2833 km
2

annual report and accounts 2012 29
shareholder information financial statements overview performance governance core growth projects
exploration and development review continued
growth project progress in 2012 priorities for 2013
bulyanhulu cil expansion
this project will expand the current cil circuit at bulyanhulu to 24 million metric tonnes 
per annum in order to retreat historic tailings and increase production by approximately 
40 thousand ounces of gold per annum for the first six years of operation the project 
has been progressing according to plan with commissioning on track for early 2014 
in conjunction with this we have now submitted the environmental and social impact 
assessment to the tanzanian government as required for the extension of the existing 
tailings storage facility at bulyanhulu
 detailed engineering design  
85 complete
 epc contract awarded to 
mdm engineering to 
manage the project
 project financing arranged 
for the provision of an 
export credit facility for 
us142 million
 completion of 
engineering design
 receipt of approvals for 
the life of mine tailing 
storage facility
 substantial completion 
of construction ahead of 
commissioning in early 2014
bulyanhulu upper east expansion
this project was previously solely based on the 12 million ounces of gold reserves located 
in reef 1 of the upper east zone we have now completed a positive scoping study to 
incorporate the 900 thousand ounces of gold which currently sit in reserves in reef 2 
we are progressing prefeasibility and feasibility work on reef 2 with the aim of 
completing a combined feasibility study for both reefs production from the upper east 
zone is targeted to commence in late 2014 and is expected to average in excess of 90 
thousand ounces of gold per annum over the life of mine
 expansion of the scope of 
the project to include reef 2 
as well as reef 1
 development of test 
stope and completion 
of rehabilitation of 
main decline 
 board approval to order 
certain long lead items
 complete the development 
of a test stope and successful 
completion of trial mining
 receipt of board approval 
to proceed with project 
execution
 continue exploration drilling 
to expand reef 2 resource
gokona expansion north mara
drilling programmes in 2012 targeted extensions to the gokona mineralised system 
at depths below the current planned open pit the aim of the drill programmes was to 
expand the potential underground resource in order to complete a detailed feasibility 
study drilling has been successful in demonstrating that high grade mineralisation 
extends to significant depths below the gokona pit and studies are currently underway 
to determine the optimal way of integrating the underground and surface resources 
in order to maximise the life of mine return at north mara 
 significant exploration 
intersections demonstrating 
good grade continuity 
 gokona underground 
resource increased to 
approximately 900 
thousand ounces
 complete feasibility study
golden ridge
golden ridge is a satellite deposit approximately 35km from bulyanhulu during 2012 
we completed a metallurgical drilling programme and incorporated the findings into our 
existing model we continue to examine the opportunity to use bulyanhulu as a potential 
processing facility and this will progress on completion of the technical review process 
currently being conducted at bulyanhulu as a part of the operational review 
 completion of metallurgical 
drilling programme to update 
resource model
 initiation of study into toll 
milling ore at bulyanhulu
 completion of study into 
incorporating golden ridge 
into the bulyanhulu life 
of mine
nyabirama expansion north mara
brownfields exploration drilling around the nyabirama open pit during 2012 has targeted 
opportunities for open pit expansions and underground extensions drill results during 
2012 demonstrated that gold mineralisation continues to significant depths below current 
and future open pit depths and that further drilling is warranted to assess the size potential 
of the nyabirama system the results from the 2012 drilling have been incorporated into 
a scoping study that is expected to be completed in early 2013 
 exploration drilling 
intersected extensions to 
current resources indicating 
the system is robust at depth
 complete the nyabirama 
resource update
 complete scoping study 
on pit expansion and 
underground potential
nyanzaga
following a highly successful drilling programme we were able to increase the size of the 
inpit resource at nyanzaga by more than 35 million ounces and it now stands in excess 
of 46 million ounces of gold we have successfully completed the scoping study for the 
project and have now moved into the prefeasibility stage where we will examine different 
options for developing the inpit resource in order to ensure an appropriate mix of 
upfront capital and future cash flows we will examine a range of options for the size of 
the process plant up to 8 million metric tonnes per annum
 expansion of inpit 
resource to in excess of 
46 million ounces
 positive exploration results 
showing higher grade zones 
both at surface and depth
 project moved from 
scoping into prefeasibility 
study stage
 successful completion of the 
prefeasibility study in the 
first half of 2013
 optimisation of the capital 
and operating costs if moved 
into a feasibility study
 drilling of deep 
exploration holes to target 
underground potential
30 wwwafricanbarrickgoldcom tanzania
kenya
uganda
lake victoria
kampala
tulawaka
buzwagi
bulyanhulu
golden ridge
nyanzaga
mwanza
west kenya jv
kisumu
north mara
key
 mine location feasibility study
 scopingprefeasibility study brownfield
 project execution greenfield
annual report and accounts 2012 31
shareholder information financial statements overview performance governance entry into kenya
exploration and development review continued
w est kenya joint v enture project 
in october 2012 we announced the acquisition of amkl from aviva 
corporation through the acquisition of amkl abg now owns a 51 
interest with the potential to move to 75 in a joint venture with lonmin 
plc and amkl ’s right to earn up to a 75 interest in a second joint 
venture with advance gold corporation the acquisition of the interests 
provides an opportunity for abg to enter an underexplored region with 
multiple styles and types of gold prospects in a country with solid transport 
infrastructure and synergies with tanzania 
the licence areas which have only seen limited previous exploration 
contain multiple largescale gold anomalies and cover five contiguous 
licences over a land package in excess of 2800 square kilometres of the 
highly prospective ndori greenstone belt in kenya which forms part of 
the tanzanian archaean craton the ndori greenstone belt has all the 
geological characteristics of the highly productive greenstone belts of the 
abitibi region of canada and the eastern goldfields of western australia 
colonial and artisanal mining and prospecting has identified in excess 
of 130 prospects and targets across the licensed properties sporadic 
historic and current exploration activities have identified a large number 
of targets that justify extensive followup and abg intends to implement 
a systematic and focused gold exploration programme these targets 
represent a significant addition to the grassroots and target delineation 
segments of our exploration pipeline
during 2013 we will focus on advancing our knowledge of the ndori 
greenstone belt geology and structure through regional programmes 
including drill testing of the more advanced stage targets the initial aim 
2012 progress


 2013 priorities

 tanzania
kenya
uganda
lake victoria
32 wwwafricanbarrickgoldcom for 2013 is to drill up to 50000 metres of aircore reverse circulation and 
diamond drill core and to collect more than 15000 auger and soil samples 
throughout the properties
generally we expect to see the west kenya jv project develop over 
the coming year through an expansive programme of early stage 
reconnaissance work and later stage drill testing with the aim of 
identifying several projects to move into resource definition drilling
to take this forward we have divided the licensed properties into two 
largescale gold camps the kakamega dome camp in the east and the 
lake zone camp to the west in order to focus our exploration activities 
and teams to ensure we are advancing the best targets
kakamega dome camp 
the kakamega dome camp has over 70 known gold occurrences from 
historic exploration and prospecting activities 
exploration over the past ten years has focused on soil sampling ground 
geophysics and drilling the majority of recent exploration activity 
undertaken prior to abg’s acquisition of amkl was focused on the 
bumbo vms cuznagau deposit in the south of the camp and at the 
bushiangala and kimingini prospects on the south side of the interpreted 
kakamega dome
reconnaissance aircore drilling in 2013 will focus on the liranda 
lineament on the south side of the kakamega dome which is a feature 
observed in airborne magnetic surveys and is coincident with a 1520 
kilometre roughly eastwest corridor of gold in soil anomalies this 
programme will be aimed at delineating targets for deeper drill testing 
drilling to date has revealed excellent results indicating that the 
systems remain open at depth and that strike extensions can be expected 
additional deeper drilling will be undertaken at bushiangala and kimigini 
to further explore this opportunity 
lake zone camp 
the lake zone camp has over 60 gold occurrences from historic 
exploration and prospecting activities exploration over the past ten years 
has included soil sampling ground and airborne geophysical surveys and 
limited shallow percussion drilling 
activities in the lake zone camp during 2012 focused on core drilling of 
several projects to investigate the style and controls on gold mineralisation 
at several prospects at one such prospect known as ramula results from 
drill programmes have been positive and we have already intersected 
significant gold mineralisation in diamond drill core when testing a 600 
by 400 metre gold in soil anomaly with some associated artisanal mining 
activity drilling on the project will be accelerated in early 2013 and a 
second rig will be brought in to test greater depths
ongoing exploration programmes in the lake zone camp will focus 
on developing a number of drill ready targets while at the same time 
completing extensive regional programmes to generate new targets for 
prospecting activities
kitson
abimbo
nairobi hill
masumbi
ramula
bushiangala
rosterman
kakamega dome camp
lake zone camp
kimingini
bumbo
sl213  siaya
sl123  ndori
key
  major reactivatedsyn 
tectonic extensional faults
 anticline
 syncline
 late faults
  artisanalcolonial 
workings
 prospects
annual report and accounts 2012 33
shareholder information financial statements overview performance governance financial review
increasing focus on cost control
“operational challenges were reflected in our 
financial results for the year ”
kevin jennings
chief financial officer
overview of 2012 financial performance
overall challenges to operating performance negatively impacted 
the group’s financial results for the year
 revenue of us10873 million was 11 lower than in 2011
 cash costs increased to us949 per ounce sold us692 in 2011
 ebitda decreased by 39 to us3309 million
 adjusted net earnings decreased by 62 to us1055 million
 adjusted earnings per share amounted to us257 cents down from 
us670 cents in 2011 and
 operational cash flow of us2579 million was 48 lower than 2011
notwithstanding our financial performance we have maintained a strong 
financial position with a net cash balance of us401 million at year end 
and we have maintained the full year dividend at the same level as 2011 
in line with the operational review the 2013 key finance initiatives 
will be
 conducting a cost and organisational structure review to align 
our current cost profile with the scale of the business
 continuing our focus on working capital optimisation and
 continuing our focus on capital prioritisation and optimisation
the following review provides a detailed analysis of our consolidated 
financial results and the main factors affecting financial performance in 
2012 it should be read in conjunction with the consolidated financial 
statements and accompanying notes to the consolidated financial 
statements which have been prepared in accordance with international 
financial reporting standards as adopted for use in the european 
union “ifrs”
y ear ended 31 december
2012 2011
attributable gold production oz
1
626212 688278
attributable gold sold oz
1
609252 699539
cash cost per ounce sold usoz
2
949 692
average realised gold price usoz
2
1668 1587
revenue us’000 1087339 1217915
ebitda us’000
2
330869 545448
cash generated from operating activities 
us’000 257903 498323
net earnings us’000 59471 274895
net earnings per share us cents 145 670
adjusted net earnings us’000
2
105484 274895
adjusted net earnings per share us cents 257 670
dividend per share us cents
3
163 163
operating cash flow per share us cents
2
629 1215
1  attributable production and sold ounces reflects equity ounces which excludes 30 of 
tulawaka’s production and sales base 
2  cash cost per ounce sold cash margin average realised gold price ebitda operating 
cash flow per share adjusted net earnings per share and adjusted net earnings are 
nonifrs financial performance measures with no standard meaning under ifrs refer 
to nonifrs measures provided as part of the glossary for the definitions of each measure 
3 includes final recommended dividend to be paid in 2013
34 wwwafricanbarrickgoldcom spot gold prices vs dxy index
1500
1550
1600
1650
1700
1750
1800
76
77
78
79
80
81
82
83
84
dec nov oct sep aug jul jun may apr mar feb jan
monthly average spot price usoz dxy index
financial performance
revenue for the year of us10873 million was 11 lower than in 2011 
us12179 million due to decreases in our production levels and gold sales 
y ear on year group gold sales volume decreased by 131 while gold revenue 
benefited from higher average realised gold prices the decrease in gold sales 
was primarily due to the lower production base and the backended nature of 
production in december 2012 which deferred sales into 2013 the average 
realised gold price was us1668 per ounce in 2012 compared to us1587 
per ounce in 2011 coproduct revenue amounted to us480 million for 
2012 a 29 decrease on 2011 us679 million due to lower sales volumes 
and prices the decrease in the production of goldcopper concentrate at 
bulyanhulu and buzwagi resulted in the decrease in copper sales volumes 
the 2012 average realised copper price of us357 per pound compared 
unfavourably to 2011 us382 per pound and was driven by global market 
factors regarding supply and demand
revenue
us’000
us1087 339
12 11 10
ebitda
2
us’000
us330869
12 11 10
cash margins
2
usoz
us719oz
12 11 10
a de facto global currency investor interest in gold as an asset class has 
increased greatly as a result of this
abg also produces copper as a coproduct which is recognised as part of 
revenue copper prices traded in a wide range of us329 to us393 per 
pound and averaged us361 per pound compared to us400 per pound 
in 2011 copper’s fall during the second half of 2012 occurred mainly due 
to uncertainty regarding the global economic recovery and softer demand 
from emerging markets especially china we expect copper to benefit as 
the us domestic recovery accelerates and the effects of the european 
financial crisis become clearer copper prices will likely also be boosted 
by a resurgence of asian demand and by the limited availability of scrap 
metal and lower production levels of mines and smelters
we will continue to monitor prices and take advantage of opportunities 
to hedge the copper price at acceptable price levels
market overview
the key external drivers of our financial results are 
commodity prices exchange rates and the price of oil their 
impact in 2012 and our positioning going into 2013 are set 
out below
commodity prices
gold prices have a significant impact on abg’s operating earnings 
and its ability to generate cash flows in 2012 the price of gold traded 
in a range of us1540 to us1790 per ounce and closed at 
us1675 per ounce gold prices averaged us1669 per ounce in 
2012 a new record average and a us97 per ounce improvement on 
the us1572 per ounce average in the prior year period 
the market price of gold has been positively influenced by low us 
dollar interest rates sovereign debt concerns investment demand 
and the monetary policies put in place by the world’s most prominent 
central banks as a result of the global easing of monetary policy as 
well as large fiscal deficits incurred in the us and other major 
developed economies there is a possibility that both inflation and us 
dollar depreciation could emerge in the coming years gold is viewed 
as a hedge against inflation and has historically been inversely 
correlated to the us dollar therefore higher inflation andor 
depreciation in the us dollar should be positive for the price of gold 
gold prices also continue to be influenced by the impact of central 
bank gold purchases and investor interest in owning gold in 2012 
central banks purchased an estimated 536 metric tonnes of gold and 
investor interest led holdings by major global exchange traded funds to 
increase by 10 million ounces in the year to total 89 million ounces at 
the end of the period historically gold has been viewed as a reliable 
store of value in times of financial uncertainty and inflation and as  
annual report and accounts 2012 35
shareholder information financial statements overview performance governance financial review continued
market review continued
fuel 
during 2012 brent crude oil traded between us126 and 
us89 per barrel and averaged us112 per barrel we 
consume approximately 625 thousand barrels of diesel 
fuel annually across all our mines diesel fuel is refined 
from crude oil and is therefore subject to the same price 
volatility affecting crude oil prices volatility in crude 
prices has a significant direct and indirect impact on our 
production costs 
using threeway option strategies we have put in place 
ceiling protection on approximately 40 of our expected 
oil exposure for 2013 the hedges cap our oil exposure at 
us110 per barrel should oil trade between us110 and 
us135 per barrel should the price of oil fall we will 
participate in the lower price to a floor of us85 per barrel
currency exchange rates
a portion of the company’ s costs are incurred in currencies 
other than us dollars the exposure relating to other 
currencies is approximately 28 of the company’ s total 
expenditure of which the main contributing currencies are 
the t anzanian shilling and the south african rand in 2012 
the rand declined significantly against the us dollar as 
investors shunned riskier randdenominated assets in 
favour of alternative investments
using collar option strategies we have put in place floor 
protection on approximately 74 of our expected rand 
operating expenditures for 2013 at average floor prices 
of zar831 
we have also used collar option strategies to put in place 
floor protection on approximately 84 of our expected 
randdenominated capital expenses relating to the 
bulyanhulu cil expansion project for 2013 and 2014 at 
average floor prices of zar870 and zar890 respectively 
we participate in rand weakness up to average ceilings of 
zar959 and zar980 for 2013 and 2014 respectively
brent crude
us per barrel
0
20
40
60
80
100
120
140
dec nov oct sep aug jul jun may apr mar feb jan
source bloomberg monthly average
tanzanian shilling
shillings per us
1560
1565
1570
1575
1580
1585
1590
1595
1600
1605
dec nov oct sep aug jul jun may apr mar feb jan
source bloomberg monthly average
south african rand
rand per us
68
70
72
74
76
78
80
82
84
86
88
90
dec nov oct sep aug jul jun may apr mar feb jan
source bloomberg monthly average
36 wwwafricanbarrickgoldcom cost of sales equalled us8027 million for the year a 14 increase on 
2011 us7041 million primarily as a result of increases in direct mining 
costs and increased depreciation due to the increased asset base employed 
and depreciated and increased capital expenditure during the year the 
table below provides a breakdown of cost of sales
y ear ended 31 december
us’000 2012 2011
cost of sales
direct mining costs 581483 510465
third party smelting and refining fees 18574 21400
royalty expense 43769 38100
depreciation and amortisation 158883 134149
total 802709 704114
overall direct mining costs increased by 14 during 2012 when compared 
to 2011 the key factors for this increase include labour costs of us1779 
million an increase of 5 on 2011 due to increases in inflation and 
employee headcount at buzwagi and north mara energy and fuel expenses 
of us1382 million an increase of 31 on 2011 primarily due to increased 
reliance on diesel generated power at buzwagi consumables costs of 
us1058 million a 13 increase on 2011 as a result of increased mining 
and processing activities and a change in processing mix at buzwagi due to 
the mining of lower grade material maintenance costs of us984 million 
a 24 increase on 2011 primarily due to north mara’ s transition from a 
marc to an owner maintenance model general administrative costs of 
us910 million which after allowing for certain cost reallocations equalled 
a 9 increase on 2011 primarily driven by increases in camp and security 
costs and capitalised direct mining costs of us1195 million an 11 
increase on 2011 due to increased deferred stripping costs at buzwagi and 
higher capitalised development costs at bulyanhulu
corporate administration costs totalled us516 million for the year a 5 
increase on 2011 us491 million primarily due to inflationary increases 
which drove labour costs higher and increased share based payment 
expenses as a result of our share price performance 
exploration and evaluation costs equalled us290 million for the year 
a 5 decrease on 2011 us303 million key expenses included 
exploration drilling at nyanzaga us56 million drilling along the north 
mara corridor us47 million metallurgical sampling and modelling at 
golden ridge us16 million and the nyanzaga scoping study us13 
million an additional us11 million of exploration costs were incurred 
following the amkl acquisition exploration funding provided to amkl 
prior to completion of the acquisition of us13 million has been treated 
as part of the acquisition cost 
corporate social responsibility expenses amounted to us144 million 
for the year approximately 95 higher than in 2011 us74 million 
the increase was driven by vbia project costs at north mara and larger 
contributions to general community projects funded by the abg 
maendeleo fund 
other charges amounted to us177 million for the year 13 higher than 
in 2011 us156 million the main contributors to this increase were 
i expenses incurred as a part of the cng offer process including adviser 
fees and workforce retention accruals totalling us67 million ii 
disallowed indirect tax claims of us30 million us71 million in 2011 
relating to ongoing discussions with the tra on outstanding refunds and 
retrospective legislation changes iii legal costs of us17 million 
iv abg’s entry into zero cost collar contracts as part of hedging 
arrangements to address copper silver rand and fuel cost volatility 
resulting in a combined marktomarket revaluation loss of us17 
million us79 million gain in 2011 v discounting adjustments of 
longterm indirect taxes of us42 million and vi foreign exchange 
gains of us43 million us60 million loss in 2011 arising mainly 
from the devaluation of the zar against the us dollar refer to note 8 
to the consolidated financial statements for further detail
finance expenses of us103 million remained in line with 2011 key 
financing expenses included us30 million for the servicing of our 
us150 million undrawn revolving credit facility us46 million in 
2011 and increased accretion expenses relating to the discounting of the 
environmental reclamation liability us40 million other costs include 
bank charges and interest paid on the factoring of concentrate receivables 
and finance leases at year end abg had no external debt finance 
income earned during the year related predominantly to interest charged 
on noncurrent receivables and interest received on time deposits refer 
to note 10 to the consolidated financial statements for further detail
impairment charges of us445 million us nil in 2011 were recorded 
against tulawaka as a result of the annual impairment review of goodwill 
and other longlived assets when comparing the recoverable amount to 
the net carrying value of tulawaka a review of tulawaka’s mine plan 
resulted in the downward revision of reserves from the high grade crown 
pillars due to geotechnical and recovery concerns as a result the net 
carrying value exceeded the recoverable amount by us410 million 
also included in the impairment charge is the writedown of capitalised 
exploration costs of us35 million relating to the unlikelihood of mining 
the mojamoja project near tulawaka refer to notes 18 and 19 to the 
consolidated financial statements for details
t axation expense decreased to us711 million for the year compared to 
us1179 million in 2011 the 2012 expense consists predominantly of 
deferred tax the lower tax expense was driven by lower profits before tax 
the effective tax rate in 2012 amounted to 60 compared to 29 in 2011 
the increase was mainly driven by tax losses of us237 million for which 
no deferred income tax assets were recognised in respect of tulawaka 
abg exploration ltd and abg plc stand alone assessed losses and a 
charge of us89 million relating to disallowed tax deductions from the 
results of a tax assessment completed by the tra on bulyanhulu historical 
tax returns this was further adversely impacted by a goodwill impairment 
charge that is not tax deductible refer to note 11 of the consolidated 
financial statements for details
net earnings were us595 million for the year as a result of decreased 
revenue increases in our cost base and the tulawaka impairment charge 
this represents a decrease of 78 from 2011 earnings levels us2749 
million net earnings per share for the year amounted to us145 cents 
a decrease of 78 from 2011 us670 cents as a result of the decrease 
in net earnings 
adjusted net earnings per share for the year amounted to us257 cents 
compared to us670 cents in 2011 for 2012 we have calculated adjusted 
net earnings by excluding one off costs or credits relating to nonroutine 
transactions from net profit attributed to owners of the parent further 
details regarding the calculation of adjusted net earnings and adjusted 
net earnings per share are provided as part of the nonifrs measures 
definitions provided as part of the glossary
annual report and accounts 2012 37
shareholder information financial statements overview performance governance financial review continued
financial position
at year end abg had cash and cash equivalents of us4013 million 
us5842 million in 2011 the group’s cash and cash equivalents are 
with counterparties whom the group considers to have an appropriate 
credit rating location of credit risk is determined by physical location of 
the bank branch or counterparty investments are held mainly in united 
states dollars and cash and cash equivalents in other foreign currencies 
are maintained for operational requirements
during the year we progressed the negotiation of project financing for 
the bulyanhulu cil expansion “project” with a commercial banking 
syndicate standard bank standard chartered and absa for the 
provision of a us142 million export credit backed term loan facility 
“facility” and concluded this exercise in january 2013 the facility has 
been put in place to fund a substantial portion of the project construction 
costs is secured upon the project and has a term of seven years when 
drawn the spread over libor will be 250 basis points the facility is 
repayable in equal instalments over its term after a twoyear repayment 
holiday period this financing complements our existing revolving credit 
facility of us150 million which runs until 2014 and remains undrawn 
at year end debt remained at zero 
goodwill and intangible assets increased by us197 million from 2011 
primarily as a result of the acquisition of intangible assets and goodwill 
from our acquisition of amkl this increase has been partially offset by 
the tulawaka impairment charge refer to note 19 to the consolidated 
financial statements for further detail 
direct mining cost breakdown
usm
150
100
50
0
50
100
150
200
contracted
services
general
administration
costs
capitalised
mining
consumables
energyfuel
costs
maintenance
labour
2011
2012
cash cost reconciliation
usoz
750
700
800
850
900
950
650
production
inventory valuation
movement
direct mining
costs
coproduct
revenue
cash cost 2012
cash cost 2011
sales related costs
key financial highlights
the net book value of group property plant and equipment increased 
from us182 billion in 2011 to us196 billion in 2012 the main capital 
expenditure drivers have been explained in the section entitled cash flow 
used in investing activities below and have been offset by depreciation 
charges of us1649 million and impairment charges of us307 million 
at tulawaka refer to notes 18 and 19 to the consolidated financial 
statements for further detail
total indirect tax receivables net of a discount provision applied to the 
noncurrent portion increased from us853 million in 2011 to us988 
million in 2012 the increase was mainly due to the impact of v at relief 
abolishment in the last quarter of 2012 offset by us45 million in refunds 
received by abg during the year the net deferred tax position increased 
from a net deferred tax liability of us940 million in 2011 to a net 
deferred tax liability of us1712 million this was driven by taxable 
income generated during 2012 and the prior year adjustment relating to 
bulyanhulu’s corporate tax position us89 million tax losses carried 
forward have reduced from us3845 million in 2011 to us3210 million 
in 2012 us889 million of deferred tax assets were not recognised as at 
31 december 2012
net assets attributable to owners of the parent decreased from us276 
billion in 2011 to us275 billion in 2012 the decrease reflects the current 
year profit attributable to owners of the parent of us595 million which 
was offset by the aggregate amount of the final 2011 and interim 2012 
dividends us701 million paid to shareholders during 2012
38 wwwafricanbarrickgoldcom ebitda reconciliation
usm
300
400
500
600
200
gold price
gold volume
coproduct
revenue
ebitda 2012
ebitda 2011
direct mining cost
other
 corporate social
responsibility
expenses
cashflow reconciliation – 2011 vs 2012    
usm  
100
150
50
0
100
50
150
200
200
investment in
other assets
dividends
other financing
acquisition of
subsidiaries
working capital
other operational
capital expenditure
net cashflow 2012
ebitda
net cashflow 2011
cash flow generation 
y ear ended 31 december
us’000 2012 2011
cash flow from operating activities 257903 498323
cash used in investing activities 360655 281532
cash used in financing activities 79439 32682
decreaseincrease in cash 182191 184109
foreign exchange difference on cash 615 967
opening cash balance 584154 401012
closing cash balance 401348 584154
cash flow from operating activities was us2579 million for the year a 
decrease of us2404 million from 2011 the decrease primarily related to 
decreased ebitda combined with an outflow associated with working 
capital us803 million working capital movements primarily related 
to increased investment in critical spares for major fleet overhauls at 
buzwagi and north mara and the impact of long lead times on 
consumable inventory levels us425 million an increase in trade 
receivables us144 million mainly due to the timing of shipments at 
year end an increase in gold inventory on hand us166 million mainly 
due to sales delays and increased ore valuation and an increase in other 
current assets us213 million mainly driven by high v at receivables 
owed by the tanzanian government 
cash flow used in investing activities was us3607 million for the year 
total cash capital expenditure for the year was us3127 million a 14 
increase on 2011 us2732 million driven by both increased sustaining 
and capitalised development expenditure slightly offset by lower 
expansionary capital expenditure
a breakdown of total capital and other investing capital activities for the 
year is provided below 
y ear ended 31 december
us’000 2012 2011
sustaining capital 153160 125945
expansionary capital 49889 63273
capitalised development 109626 83990
total cash capital 312675 273208
noncash rehabilitation asset adjustment 19242 52761
noncash sustaining capital
3
8378 19266
total capital expenditure 340295 345235
other investing capital
 – amkl acquisition
1
22039 –
 – noncurrent asset movement
2
25941 8325
1  amkl acquisition relates to the acquisition of the subsidiary net of cash for us220 
million inclusive of exploration funding us13 million
2  noncurrent asset movements relates to the investment in land acquisitions reflected as 
prepaid operating leases tanzanian government receivables and the settlement of a 
historical exploration acquisition liability at buzwagi of us66 million
3  total noncash sustaining relates to the capital finance lease at buzwagi for drill rigs in 
2012 and the backup power generators in 2011 and also includes capital accruals excluded 
from cash sustaining capital
annual report and accounts 2012 39
shareholder information financial statements overview performance governance financial review continued
cash cost per 
ounce sold
1
usoz
us949 oz
adjusted net 
earnings 
per share
1
us¢share
12 11 10
operating cash 
flow per share
1
us¢share
us629centsshare us257 centsshare
12 11 10 12 11 10
ebitda by mine site
1
us’000
 2012 2011
bulyanhulu 204348  256504
buzwagi 86155 166113
north mara 117576 128627 
tulawaka 15614 67973
other 92824 73769
330869
sustaining capital expenditure included the renewal of mine equipment 
across our three main operations us500 million investment in 
underground camp and building infrastructure at bulyanhulu us61 
million north mara us145 million and tulawaka us12 million 
process plant and tailings storage facility expansion expenditure at 
buzwagi us38 million bulyanhulu us172 million north mara 
us25 million and tulawaka us30 million and costs relating to 
the north mara gold plant upgrade us41 million
expansionary capital expenditure consisted of the bulyanhulu cil 
expansion us261 million and capitalised exploration and evaluation 
costs of us166 million capitalised exploration and evaluation costs 
predominantly relate to the bulyanhulu upper east zone resource definition 
drilling us52 million gokona and nyabirama underground drilling 
projects at north mara us53 million nyanzaga prefeasibility costs 
us32 million and tulawaka underground drilling us29 million
capitalised development capital includes capitalised deferred stripping 
at north mara us257 million and buzwagi us311 million and 
bulyanhulu and tulawaka capitalised underground development of 
us456 million and us73 million respectively
noncash capital for the year totalled us276 million and consisted 
mainly of reclamation asset adjustments us192 million and the impact 
of sustaining capital accruals us68 million reclamation adjustments 
were driven by increased contractor equipment rates additional disturbance 
caused by the expansion of mine sites and a change in discount rate 
other investing capital included the acquisition cost of amkl us220 
million net of cash and inclusive of us13 million exploration funding 
during the year north mara incurred land purchases totalling us259 
million which was slightly offset by cash proceeds on the sale of assets 
us46 million we have also settled the historical exploration 
acquisition liability of us66 million at buzwagi
cash used in financing activities was us794 million for the year an 
increase on 2011 us327 million the outflow primarily relates to the 
payment of the 2011 final and 2012 interim dividends finance lease 
liabilities amounted to us57 million an increase of us35 million on 
2011 as a result of payments required for a full year of financing leasing 
mdn contribution payments in respect of tulawaka for 2012 amounted 
to us36 million 
final dividend of us123 cents per share has been recommended by 
the directors for 2012 subject to the shareholders approving this 
recommendation at the agm an interim dividend of us40 cents per 
share was paid to shareholders on 24 september 2012
significant judgements in applying accounting policies and key sources of 
estimation uncertainty many of the amounts included in the consolidated 
financial statements require management to make judgements andor 
estimates these judgements and estimates are continuously evaluated and 
are based on management’s experience and best knowledge of the relevant 
facts and circumstances nevertheless actual results may differ information 
about such judgements and estimation is included in the accounting 
policies andor notes to the consolidated financial statements key areas of 
judgement and key sources of estimation uncertainty that have the most 
significant effect on the amounts recognised in the consolidated financial 
statements include
1  cash cost per ounce sold ebitda adjusted net earnings per share and operating cash 
flow per share are nonifrs financial performance measures with no standard meaning 
under ifrs refer to nonifrs measures provided as part of the glossary for the full 
definitions of each measure
key financial highlights
40 wwwafricanbarrickgoldcom net working capital breakdown
usm
0
100
200
100
200
300
700
600
500
400
300
150
100
50
200
250
300
500
450
400
350
0
2010 2011 2012
gold inventory
receivables
net working capital position rhs
supplies inventory
indirect taxes
other
payables
related party payables
capex by mine site 
usm
60
40
20
80
100
120
140
0
2012
bulyanhulu buzwagi north mara tulawaka
2011 2012 2011 2012 2011 2012 2011
sustaining reclamation asset expansion capitalised development
 estimates of the quantities of proven and probable gold reserves
 the capitalisation of production stripping costs
 the capitalisation of exploration and evaluation expenditures
 review of goodwill tangible and intangible assets carrying value 
the determination of whether these assets are impaired and the 
measurement of impairment charges or reversals
 the estimated fair values of cash generating units for impairment 
tests including estimates of future costs to produce proven and 
probable reserves future commodity prices foreign exchange rates 
and discount rates
 the estimated useful lives of tangible and longlived assets and the 
measurement of depreciation expense
 property plant and equipment held under finance leases 
 recognition of a provision for environmental rehabilitation and the 
estimation of the rehabilitation costs and timing of expenditure
 whether to recognise a liability for loss contingencies and the amount 
of any such provision
 whether to recognise a provision for accounts receivable and the 
impact of discounting the noncurrent element
 recognition of deferred income tax assets amounts recorded for 
uncertain tax positions the measurement of income tax expense and 
indirect taxes
 determination of the cost incurred in the productive process of ore 
stockpiles gold in process gold dorébullion and concentrate as well as 
the associated net realisable value and the split between the longterm 
and shortterm portions
 determination of fair value of derivative instruments and
 determination of fair value of stock options and cashsettled share 
based payments
going concern statement the abg group’s business activities together 
with factors likely to affect its future development performance and 
position are set out in the operational and financial review sections of this 
report the financial position of the abg group its cash flows liquidity 
position and borrowing facilities are described in the preceding 
paragraphs of this financial review 
in assessing the abg group’s going concern status the directors have 
taken into account the above factors including the financial position of the 
abg group and in particular its significant cash position the current gold 
and copper price and market expectations for the same in the medium 
term and the abg group’s capital expenditure and financing plans after 
making appropriate enquiries the directors consider that abg and the 
abg group as a whole has adequate resources to continue in operational 
existence for the foreseeable future and that it is appropriate to adopt the 
going concern basis in preparing the financial statements
kevin jennings 
chief financial officer
annual report and accounts 2012 41
shareholder information financial statements overview performance governance corporate responsibility
responsible mining
we progressed our environmental compliance programme throughout the 
year primarily as a result of continued progress in the implementation of 
group environmental management systems enhancements made to the 
processes and procedures used to monitor environmental impacts at our 
operations and further improvements made to permitting processes 
there are no new material adverse developments in the context of business 
governance and ethics for 2012 the majority of reports submitted in 
connection with our business ethics incident reporting procedures during 
the year related to employee matters at our operations none of the reports 
submitted are expected to have a significant effect on abg 
core health and safety activities for the year focused on the continual 
progression of improvements in our group total reportable injury 
frequency rate which at 083 for the year is a 30 improvement on 2011 
further implementation of critical risk standards abg health standards 
and key health and safety governance initiatives namely our visible felt 
leadership and courageous leadership training programmes however 
despite progress made in these areas regretfully we suffered two fatalities 
during the year 
we continued to progress enhancements to our security function and 
compliance with our human rights commitments throughout the year 
key achievements include the further enhancements of security 
infrastructure across our operations and increased participation in 
safety security and human rights training programmes involving 
participants from the abg security function the tanzanian police force 
and local communities 
further details on 2012 performance and 2013 targets for each material 
component of our sustainability programme are provided below
“responsible mining means conducting our 
business in a way that reflects our commitment 
to excellence to the benefit of all stakeholders 
as a whole ”
overview of 2012 activities 
responsible mining has remained a key objective for our business in 2012 
in this regard we have made a number of developments within our 
sustainability programme resulting in the achievement of a positive level 
of overall performance across this programme the material components 
of our sustainability programme for 2012 remained the same as those 
identified in 2011 these being community relations employees 
environment governance and ethics health and safety and security 
and human rights 
in the context of community relations efforts for the year focused on the 
progression of community stakeholder engagement procedures further 
implementation of abg social incident reporting procedures the 
continued implementation of the north mara coexistence plan the 
development of social management plans to support our operations and 
further enhancements to our community relations management system 
we have made a number of positive developments throughout the year 
in our employee recruitment retention training and development 
programmes we have also been successful in the progression of employee 
localisation targets whilst making improvements in abg group turnover 
rates overall 
our material areas
responsible 
mining
community
relations
environment
health

safety
employees
governance 
 ethics
security

human 
rights
community relations
 stakeholder engagement
 social impacts
 community development
 resettlement
employees
 labour practices
 local employment
 employment development
 talent retention
environment
 conservation and protection
 biodiversity
 climate change
 management of 
hazardous materials
health  safety
 operational health  safety
 emergency preparedness
 community wellbeing 
 incident reporting
security  human rights
 stakeholder engagement
 training  development
 emergency preparedness
 incident reporting
governance  ethics
 business ethics
 code of conduct
 corporate governance
42 wwwafricanbarrickgoldcom abg’s economic contribution
direct economic contribution
direct economic contribution is made up of the economic value we add by 
paying our employees governments suppliers shareholders contractors 
and communities however our true economic contribution is far greater 
once the greater effects of our presence is considered these include the 
indirect effects of people spending their wages governments distributing 
tax and royalty revenues and neighbouring communities using the 
infrastructure developed for our operations 
we contribute to the economic growth of our host communities regions and countries 
in a number of ways to assist the progression of sustainable socioeconomic development 
direct economic contribution

40
20
0
20
40
60
80
100
employees
net of tax
available for
reinvestment
suppliers
contractors and
communities
dividends
interest and
noncontrolling
shareholders
taxes and
government
royalties
2011
2012
t axation contribution
the table below shows the total of all tax payments for each of the main 
countries where we have operations or projects the distribution of taxes 
paid by the group reflects the geographical spread of our business the 
majority of our taxes are paid in tanzania this being the location of our 
operating mines followed by south africa although abg’s headquarters 
are in london only a small proportion of our operations are located in 
the uk a large proportion of our administrative finance and technical 
support functions are located in south africa please refer to the 
government relations discussion provided as part of the chief executive 
officer’s statement for information regarding developments affecting 
royalty payments during the year 
us’000 taxes borne
taxes 
collected subtotal
taxes 
refunded 
net 
payments to 
governments 
tanzania 99658 54991 154649 4500 150149
south africa 1541 5712 7253 1146 6107
other 1656 2381 4037 868 3169
total 102855630841659396514159425
2011 net tax contribution
usm
corporate income tax 39
royalty – government 33
indirect taxes vat and fuel levies 15
payroll taxes inc social security 72
other taxes inc wht stamp duties
environmental levies 15
144
2012 net tax contribution
usm
corporate income tax 0
royalty – government 40
indirect taxes vat and fuel levies 17
payroll taxes inc social security 75
other taxes inc wht stamp duties
environmental levies 27
159
abg’s total direct economic contribution was us1073 million in 2012 us1063 million in 2011
of this our net taxation contribution was us159 million us144 million in 2011
annual report and accounts 2012 43
shareholder information financial statements overview performance governance progress made under the  
abg maendeleo fund
education
supporting projects that increase access to 
education is a primary objective of the abg 
maendeleo fund our core projects focus on 
increasing educational infrastructure through 
the building and renovation of schools 
providing core supplies such as books and 
equipment and providing scholarships and 
training opportunities for students and 
members of the teaching profession 
key projects 
supported in 2012
10
key projects 
supported in 2012
16
key projects 
supported in 2012
11
amount invested  
in 2012
us06million
amount invested  
in 2012
us15million
amount invested  
in 2012
us15million
community development 
we support community economic development 
through training and employment initiatives 
and local trading arrangements we use local 
suppliers and businesses wherever possible 
for our operations and support training 
programmes that aim to enhance skill sets 
within communities 
healthcare 
we support access to healthcare through 
investment in a wide range of projects including 
projects that build and strengthen local healthcare 
infrastructure projects that increase healthcare 
capacities through training and development the 
sponsorship of international surgical missions 
and by supporting a range of initiatives aimed 
at helping to combat core infectious diseases 
namely malaria hivaids and tuberculosis
we established the abg maendeleo fund in 2011 as part of 
our commitment to promoting sustainable development in 
tanzania abg aims to commit us10 million per year to 
the fund making it the largest community development fund 
of its kind in tanzania we use the fund to support all of our 
community investment programmes funding priority is 
given to investments that support community development 
and capacity building access to health education and water 
and environment projects within communities surrounding 
our operations 
since its inception in 2011 the abg maendeleo fund has approved 
funding for projects amounting to approximately us74 million of this 
amount us36 million was invested in projects during 2012 we invested 
us14 million for projects supporting north mara local communities 
us05 million for projects supporting buzwagi local communities 
us01 million in projects that support bulyanhulu local communities 
and us03 million for projects supporting communities in the vicinity 
of tulawaka we also invested us13 million in projects sponsored at 
a corporate level the majority of commitments relate to projects that 
support community development and access to healthcare and education
in addition to local initiatives during the year we commenced sponsorship 
of a regional programme to fund the provision of additional school desks 
and other equipment to schools the project entitled “ a desk for every 
child”  aims at increasing school capacities to ultimately increase 
opportunities for access to education in abg local communities 
ultimately we aim to contribute 5000 new school desks to this project 
go online to find all the projects wwwafricanbarrickgoldcom
corporate responsibility continued
44 wwwafricanbarrickgoldcom community relations
the development of social management plans which will 
act as the principal tool for the management of social 
performance across all abg operations going forward was 
a core focus for 2012 during the year we agreed the form of 
social management plan for use at north mara and buzwagi 
both of which will be implemented in 2013 the social 
management plan for bulyanhulu will be developed in 2013 
relevant components of a social management plan for 
tulawaka will be included in the closure plan for this mine 
given the current status of its mine life 
we continued to progress objectives under the north mara 
coexistence plan throughout the year the execution of 
village benefit agreements and village benefit implementation 
agreements with all seven villages surrounding the mine 
during the first half of the year represented a significant step 
in the agreement and identification of key social legacy issues 
with these communities the initial investment under these 
agreements was estimated at us85 million over the first 
three years and we estimate that it could take a further three 
years to fully implement them with a similar financial 
commitment over the second threeyear period the form of 
investment in each of the villages differs but includes the 
development of school infrastructure improvements in 
access to water supply the upgrading of the sungusungu 
clinic so that it may qualify for ongoing government hospital 
funding rehabilitation of village offices and improvements to 
road and electricity supply infrastructure in addition to this 
we have also committed approximately 51 of abg’s total 
community investment for 2012 to projects in north mara’s 
surrounding areas the remaining components of the north 
mara coexistence plan have been combined with the north 
mara social management plan and will be taken forward as 
part of this plan 
groupwide community investments in 2012 amounted to 
approximately us144 million almost a 95 increase on 
2011 approved community investment projects principally 
focus on access to education healthcare water and the 
development of local infrastructure 
we continued our support for caneducate in 2012 which 
raised total funds of approximately cad127000 these 
funds will be used to support approximately 1461 students in 
local communities around bulyanhulu buzwagi and following 
extension of the programme during the year north mara as 
well as an orphanage in dar es salaam 
as part of our plans to enhance our social incident reporting 
practices we developed new procedures for social and 
security risk assessments during the year these procedures 
will be used to help to identify potential incidents which 
pose significant social and security risks to our operating 
environment procedures are now at implementation stage 
and we aim to complete this across all operations by the 
end of 2013 
a total of 443 new grievances were lodged under the abg 
community grievance management and resolution procedure 
in 2012 the majority of new grievances continue to relate to 
historic land compensation matters at north mara 
progress in 2012
 execution of village benefit agreements and 
village benefit implementation agreements 
with local communities at north mara
 development of social management plans  
for buzwagi and north mara
 development of social and security  
risk assessments
priorities for 2013
 implementation of social management plans 
at buzwagi and north mara
 development of a social management plan  
for bulyanhulu 
 further progression of social incident 
reporting grievance and risk identification
breakdown of new 
grievances lodged
total number 
 
12 11 10
bulyanhulu 21
buzwagi 23
north mara 396
tulawaka 3
443
total community 
investment
usm 
12 11 10
bulyanhulu us12
buzwagi us12
north mara us73
tulawaka us13
corporate us34
us144
case study abg social management plans
social management plans or smps as they are commonly referred to are 
site specific framework plans that identify execution strategies for all social 
commitments identified and agreed for implementation as part of abg’s 
community investment and development commitments the formulation of 
smps seeks to ensure that social obligations assumed by each abg operation 
are identified and agreed in a transparent manner to appropriately balance 
commitments and the requirements of our operating environment smps are 
developed by each site in collaboration with a wide range of stakeholders 
including local communities and government departments in order to ensure 
that plans are objectively formulated once agreed smp implementation 
is monitored against specified key performance indicators and project 
implementation timetables compliance with smps is also evaluated as  
part of a social monitoring process conducted by government bodies
annual report and accounts 2012 45
shareholder information financial statements overview performance governance corporate responsibility continued
employees
turnover rates for our operations stabilised in 2012 at 14 
an improvement of 3 on 2011 turnover levels and a notable 
achievement given the continued competition for qualified 
personnel across the mining industry generally during the 
latter half of the year we experienced a spike in resignations 
notably at bulyanhulu as a result of potential changes to 
tanzanian pension legislation we will continue to monitor 
developments in this area in 2013 we have continued to 
progress our commitment to the localisation of our 
workforce with national employment levels amounting to 
91 of our operations’ workforce in 2012 a 2 improvement 
on 2011 
we have further progressed training and development 
programmes throughout the year increasing front line 
supervisor participation in our supervisory development 
programme and high potential individuals’ participation in 
our management development programme overall 59 of 
group employees participated in technical training courses 
during the year compared to 56 in 2011 
we employed 30 graduates from the integrated mining 
technical training “imtt” programme in 2012 this being 
a vocational training programme developed by abg in 
conjunction with other stakeholders within the tanzanian 
commercial mining industry in order to support and 
progress technical training for the mining sector abg 
currently sponsors 126 participants in the imtt programme 
and reviews employment opportunities for programme 
graduates each year
the industrial relations climate has been stable across our 
operations and we ended 2012 without any new material 
industrial relations actions being commenced at any of our 
operations overall approximately 41 of our national 
employees held union membership at year end compared to 
48 in 2011 we continue to foster good relationships with 
the tanzanian mining and construction workers’ union 
“tamico” at all of our operations and we are further 
progressing employee consultation initiatives as part of our 
employee communications practices 
progress in 2012
 the establishment of the abg talent council to review 
succession planning and employee development requirements
 progression of abg capacity building initiatives to support 
employee localisation targets particularly at senior level
 improved employee consultation practices including the 
establishment of workplace communication forums
priorities for 2013
 achieving a localisation target of 93 across our operations 
 stabilising turnover of high potential individuals at 5 across 
our operations
 making further enhancements to employee and industrial 
relations engagement processes
case study  
supporting professional development
abg operates a professional development 
education programme which provides 
sponsorship to individuals for professional 
studies richard ojendo construction manager 
at buzwagi mine participated in this 
programme receiving sponsorship for an msc 
in construction project management from 
heriotw att university edinburgh he 
graduated with a master’s degree in november 
2012 the master’s programme focused on 
international best practice as regards the 
management of construction projects helping 
richard to further develop his knowledge and 
skills in this area skills that will now be 
employed in the performance of his 
responsibilities at abg
group wide 
turnover
percentage within 
operations 
12 11 10
bulyanhulu 12
buzwagi 15
north mara 13
tulawaka 24
14
91
localisation of 
workforce
percentage of national 
workforce 
12 11 10
bulyanhulu 94
buzwagi 91
north mara 86
tulawaka 87
union membership
percentage of national 
workforce 
12 11 10
bulyanhulu 46
buzwagi 31
north mara 34
tulawaka 54
41
46 wwwafricanbarrickgoldcom environment
we continued to enhance the abg group’s environmental 
and permitting management systems throughout the year in 
order to improve alignment with operational objectives 
ghg emissions for the year equalled 359458 metric tonnes 
of which 71010 metric tonnes represented indirect emissions 
and 288448 metric tonnes represented direct emissions 
overall this is a 24 increase on ghg emissions from 2011 
the increase is primarily due to increased self generation of 
power at each of our sites notably at buzwagi and increases 
in the size of mobile fleet across our operations we continue 
to review feasible options to improve ghg emission levels in 
the context of the reliability of grid power supply in addition 
we are in the process of reviewing appropriate targets in the 
context of the new mandatory ghg emission reporting 
requirements that will be introduced in 2013 for uk listed 
companies and will provide an update on this in due course 
our ability to progress efficiencies in energy use and 
conservation initiatives continues to be impacted by ongoing 
interruptions to electricity supply in tanzania in 2012 we 
used 592 megajoules of energy per tonne of ore processed 
a 17 increase on 2011 levels our energy profile for the year 
comprised 82 diesel use 17 electricity use with our use of 
explosives propane petrol and other fuels remaining largely 
equivalent to 2011 key energy conservation projects 
implemented in 2012 included the installation of a plant 
efficiency programme at bulyanhulu 
in 2012 we used 74 million cubic metres of water across our 
operations of which 43 million cubic metres represents fresh 
water overall our use of fresh water remained in line with 
2011 43 cubic meters in 2011 in addition we improved 
efficiencies in water use generally in 2012 using 550 litres of 
water per tonne of ore milled a decrease of 3 on 2011 levels 
568 litres of water per tonne milled 
we continued to progress our hazardous materials 
management practices throughout the year with the 
development of nonmineral waste management plans for all 
of our operations these plans will advise sites on actions 
required in order to comply with tanzanian legislation and 
satisfy good waste management practices in addition 
bulyanhulu obtained full recertification under the 
international cyanide management code in line with key 
priorities set for the year we have also continued to progress 
buzwagi’s initial certification under this code in conjunction 
with the ongoing commissioning of the buzwagi detoxification 
plant we now aim to complete this certification process in 
the first half of 2013
we are continuing to work with the relevant authorities to 
progress the lifting of the environmental protection order 
“epo” at north mara in order to be able to discharge water 
nemc the tanzanian environmental regulator has recently 
visited the operation for a final review and we are now 
awaiting their approval
energy used per 
tonne of ore 
processed
megajoules
12 11 10
bulyanhulu 797
buzwagi 542
north mara 507
tulawaka 1412
592
total water used
in litres used per tonne 
of ore produced
12 11 10
bulyanhulu 973
buzwagi 479
north mara 459
tulawaka 896
550
progress in 2012 
 obtaining bulyanhulu’s recertification under the international cyanide 
management code 
 improving water usage efficiencies by 3
 completion of closure plan for tulawaka
priorities for 2013
 obtaining initial certification of buzwagi under the international cyanide 
management code
 completing the commissioning of the north mara w ater treatment plant 
for the lifting of the epo and obtaining a discharge permit for the site
 completing the implementation of all nonmining waste management plans
case study environmental rehabilitation
the gonzara area is a natural wetland area in 
the vicinity of the north mara mine this area 
was adversely affected by soil contamination 
in 2009 as a result of acid rock drainage and 
discharge from seepage containment ponds 
which occurred after trespassers entered the 
mine premises vandalised and in some cases 
stole the plastic pond liners designed to prevent 
such seepage occurring abg rectified this by 
excavating and replacing the contaminated soils 
lime dosing the wetland area installing 
defensive trenches and sumps to cut off any 
further acid drainage or seepage and concluding 
a revegetation exercise of the affected areas the 
results of this exercise were monitored from 
2009 to 2012 and showed ongoing restoration 
of vegetation the return of native wildlife to 
the area and ultimately the restoration of a 
functioning ecosystem
annual report and accounts 2012 47
shareholder information financial statements overview performance governance health and safety
we achieved an abg groupwide total reportable injury 
frequency rate “trifr” of 083 for 2012 a 30 improvement 
on 2011 far exceeding the 10 improvement target set for 
the year we will look to further progress this in 2013 and aim 
to improve 2012 achievements by an additional 10 as part 
of our review of health and safety metrics we have decided to 
focus solely on trifr going forward given that this captures 
all injuries in the workplace and thus a wider range of 
incidents than those captured by monitoring lost time injury 
frequency rates alone despite improvements made overall 
in abg group trifr we regretfully suffered two fatalities 
across our operations in 2012 the first involved a contractor 
employee at buzwagi who was involved in a vehicle related 
incident the second involved an abg employee at tulawaka 
who was involved in a mobile equipment accident both of 
these incidents have been investigated and the necessary 
corrective action taken 
we continued to develop and implement critical risk 
standards throughout the year focused on the promotion 
of health and safety best practice across specific mining 
processes and procedures for 2012 we developed five new 
critical risk standards in the following areas vehicles and 
driving confined space entry hazardous energy isolation 
working at heights and ground control the ground 
control standard was fully implemented during the year in 
2013 we will look to complete the implementation of the 
remaining standards and will look to develop additional 
standards for contractor safety management cranes and 
lifting and critical infrastructure maintenance 
we continued to develop abg health standards throughout 
the year which are designed to prevent industrial illness 
across our operations in 2012 we developed health standards 
for the treatment of silicosis cyanide poisoning and 
anaphylaxis all of which are currently under implementation 
in 2013 we will look to complete implementation of these 
standards and develop additional standards for the treatment 
of noise induced hearing loss and respiratory protection 
we also continued to progress community health impact 
assessments which assess the potential impact of our 
operations on public health throughout the year ultimately 
this process aims to create community health management 
plans for all of our operations in 2012 we completed 
consultation processes for the creation of a community health 
management plan for buzwagi and we are in the process of 
finalising plans for north mara and tulawaka we will look 
to complete these processes in 2013 community health 
impact assessments for bulyanhulu are scheduled to 
commence in 2014 
corporate responsibility continued
progress in 2012 
 achieving a 30 improvement in abg 
group trifr
 developing five critical risk standards to 
support mining processes and procedures
 developing three health standards to combat 
occupational illness in the workplace
 creating a community health management 
plan for buzwagi
priorities for 2013
 achieving a further 10 improvement in  
abg group trifr
 completing the implementation of our existing 
five critical risk standards and developing three 
new critical risk standards
 developing two new health standards to combat 
occupational illness in the workplace
 completing the creation of community health 
management plans for north mara and t ulawaka
case study visible felt leadership and courageous leadership
the visible felt leadership and courageous leadership programmes are the 
primary training tools used throughout our organisation to promote health and 
safety practices programme objectives focus on ways in which leaders within 
our organisation can improve interactions with employees in the workplace 
in order to promote and teach abg’s vision and values to help drive health 
and safety performance in 2012 we set minimum targets for management 
interaction across the workforce in order to promote the standards set by these 
programmes all of which were largely exceeded 
total reportable
injury frequency 
rate
frequency rate
12 11 10
bulyanhulu 102
buzwagi 057
north mara 071
tulawaka 138
083
48 wwwafricanbarrickgoldcom security and human rights
we made a number of enhancements to security and safety infrastructure 
across our operations during the year further improving our operating 
environment at north mara we completed the installation of the safety 
wall at the nyabirama pit and upgrades to gold plant security mechanisms 
and security personnel accommodation at bulyanhulu we commenced 
security compliance reviews against our gold security standard and 
completed the installation of new security premises for security personnel 
at buzwagi we commenced the installation of additional surveillance 
equipment something which will continue into 2013 and completed the 
installation of crisis control centres we also installed additional 
surveillance equipment at tulawaka 
we continued to progress training as regards our security practices and 
expectations for individual performance of security related duties 
throughout the year overall we assisted with the training of approximately 
6367 individuals on the voluntary principles on security and human 
rights 6569 individuals on use of force practices and 5927 individuals on 
the detection and prevention of sexual harassment participants in abg 
training programmes included members of the tanzanian policing unit 
assigned to provide security to our operations abg security employees 
and contractors and community watchmen 
from a governance perspective we saw a noticeable improvement across 
a number of areas relevant to operational security risk assessments and 
audits including compliance with our gold security standards the 
voluntary principles on security and human rights use of force 
protocols investigations and use of personal protective equipment 
during the year we decided to report security related total reportable 
injury frequency rate as a subsection of overall total reportable injury 
frequency rate as part of increased focus on the monitoring of security 
incidents impacting our operations for the year the security related total 
reportable injury frequency rate was 016 in this regard the majority of 
security incidents continue to occur at north mara we experienced a 
spike in illegal mining activity and related incidents of trespass during the 
year particularly at north mara in the latter half of the year however this 
has now returned to normalised levels
in the context of human rights in addition to voluntary principles 
training we continued to progress the roll out of our human rights policy 
and compliance programme notably with the further implementation 
of reporting and investigations procedures for suspected human 
rights violations 
in conjunction with abg training initiatives search for common ground 
“sfcg” continued to progress its human rights training and conflict 
resolution programme building on progress made in 2011 during the 
year sfcg held 95 training sessions with communities surrounding abg 
mine sites involving 1428 community members overall in order to 
progress understanding of the voluntary principles on security and 
human rights in addition to this sfcg held 60 youth conflict 
management sessions in which 1868 community members participated 
55 sessions focused on conflict management as it affects women in which 
1570 individuals participated and 76 participatory theatre productions 
a number of football tournaments aimed at relationship building across 
abg’s stakeholder base were also held all of these initiatives aim to 
progress discussion communication and understandings as regards the 
effect of conflict and conflict related issues within communities 
in 2013 we will continue to develop our security and safety training and 
systems in addition we aim to progress wider stakeholder engagement on 
the development of enhanced law and order frameworks for our operating 
environment in particular with regional and national tanzanian 
authorities and law enforcement bodies
progress in 2012
 completing enhancements to security systems across all 
abg operations
 increasing training on the voluntary principles on security 
and human rights across abg stakeholders
 progressing implementation of our human rights 
compliance programme
priorities for 2013
 maintaining training levels on the voluntary principles on 
security and human rights
 progressing dialogue on law and order particularly at north mara 
with our wider stakeholder group
case study w orking towards effective conflict management
in 2011 we established a partnership with search for common ground 
an internationally recognised ngo in the field of conflict resolution to 
help strengthen trust and improve collaboration between abg operations 
and local communities in the context of conflict management particularly 
at north mara the ultimate objective of our partnership is to find 
culturally appropriate ways to constructively deal with conflicts in order to 
mitigate conflict escalation sfcg use a number of methods of community 
engagement in order to progress understanding of conflict resolutions in 
addition to general community training programmes sfcg’s activities 
include youth conflict training management sessions aimed at younger 
members of communities which focus on the dangers of illegal mining 
and mine site intrusions and training sessions specifically for women 
focused on identifying pertinent issues such as harassment and other 
unacceptable actions against women other engagement tools include 
the creation and distribution of educational materials such as comics to 
discuss topics including the voluntary principles on security and human 
rights un guidelines on use of force by law enforcement officials 
universal human rights and sexual harassment sfcg also uses theatre 
productions in order to highlight conflict scenarios in context and 
sporting activities such as football tournaments involving players from 
local communities the authorities and members of the abg workforce 
which aim to build relations and teamwork
annual report and accounts 2012 49
shareholder information financial statements overview performance governance risk management across the business
board
ultimately responsible for effectiveness of internal control systems
audit committee 
plays a key role in reviewing effectiveness
defines abg’s risk 
appetite and tolerance
has overall responsibility 
for risk management compliance  
approves all key components 
of risk management and internal 
control systems
reviews effectiveness of internal control systems
reviews all material findings of the internal 
and external audit functions
approves the annual internal and external audit plan
reviews effectiveness of financial reporting risk 
management systems
a critical role in advising 
and producing guidance 
on riskrelated matters
assists management 
in conducting risk studies
reviews risk 
profiles
interpretation 
of risk data
senior leadership team
accountable for the design and implementation of risk management processes and 
the consistent application of risk management systems
general managers and functional heads
ensure risk management compliance is embodied in abg’s culture practices and operations
internal audit function 
assists the board and management in executing their responsibilities
ehss committee 
responsible for environmental security 
health  safety systems
reviews the effectiveness of abg’s environmental management 
programmes and systems security systems health and 
safety systems and social performance
risk management
effective risk management requires collective responsibility and engagement across our organisation for this reason our risk 
management practices are structured across our governance framework to ensure that the board certain board committees 
the senior leadership t eam general managers and functional heads are accountable for identifying mitigating and managing 
risk in accordance with the responsibilities of their function and their role within our organisation 
committed to effective risk management
50 wwwafricanbarrickgoldcom risk management 
the successful delivery of abg’s strategy depends on our ability to tolerate 
and manage risks appropriately in a manner that does not jeopardise the 
interests of our stakeholders 
for this reason we conduct risk assessments throughout the year as part 
of business performance and operational reviews including
 quarterly business reviews
 group level risk workshops to consider overall strategic risks to 
the business
 operational risk workshops focused on specific operational risks 
in the context of each of our operations
 functional risk workshops to assess key matters which could affect 
underlying support functions such as treasury tax and technical 
services required for our longterm business plans
 monthly operational and financial performance reporting
our annual business plan and budgeting process incorporate risks 
identified through the above reviews residual risks are then identified 
based on the effectiveness of existing controls and mitigating action plans 
prepared for all high impact areas when compiled all risk assessments 
are assessed by the senior leadership team in the first instance the audit 
and ehss committees where relevant and ultimately form the basis of 
a detailed board review further details as regards the outcome of the 
board’s internal control and risk management review for the year is 
provided on page 63
2012 risk review 
generally the overall makeup of our principal risks has not significantly 
changed from 2011 however during the year there have been changes 
in certain risk profiles as a result of developments in our operating 
environment and continuing uncertainties and trends within the wider 
global economy andor the mining industry where appropriate risk 
ratings have been reviewed against risk management controls and other 
mitigating factors in this regard we have removed risks relating to health 
and infectious diseases from the 2012 principal risks table given that our 
controls in these areas continue to mitigate potential impacts of such risks 
to an acceptable level in addition 
 increases in operating costs and capital expenditure due to continued 
industry cost pressures and increased cash costs at our operations risks 
relating to increases in capital expenditure as well as increases in 
operating costs principally labour capital equipment and energy costs 
remain high however as a result of the ongoing implementation of cost 
controls and the intended cost control plans contained within the 
ongoing operational review our overall risk rating for these areas 
remains unchanged 
 power supply we have continued to invest in power generation 
capabilities throughout the year to help mitigate the effects of stoppages 
and interruptions therefore although we have continued to experience 
issues in electricity supply during the year as a result of ongoing supply 
issues throughout tanzania our risk rating as regards interruptions in 
key utilities remains unchanged
 recruitment and retention of qualified personnel as a result of 
continued competition for qualified personnel across the mining 
industry and the uncertainty created within our workforce as a result 
of barrick’s discussions with china national gold we have decided to 
maintain a high risk rating for the retention and recruitment of our 
skilled workforce in addition further developments affecting pension 
practices in tanzania could produce further adverse effects on the 
retention of certain longterm employees
 political legal and regulatory developments we achieved a number 
of positive outcomes as regards our operating framework in tanzania 
namely our adoption of an additional voluntary 1 royalty going 
forward the renewal of our special mining licences at north mara and 
the grant of certain paf permits to support this operation however 
our ability to progress our government relations strategy over the latter 
half of the year was impeded and in certain instances negatively 
impacted by the prolonged offer period to which abg was subject 
we have now resumed efforts in this area such that our risk outlook for 
political and regulatory developments currently remains unchanged
 risks relating to security trespass and vandalism we have continued 
to strengthen our security systems throughout the year and refine our 
security plans although we experienced a spike in illegal mining 
activity and related incidents of trespass during the latter half of the 
year particularly at north mara this has now returned to normalised 
levels such that our outlook on security risks remains largely unchanged 
 taxation during the year a revised finance act was introduced in 
tanzania that is inconsistent with previous agreements reached between 
us and the tanzanian authorities on the treatment of v at relief we 
continue to progress discussions on these inconsistencies in order to 
achieve a resolution in line with what we had previously agreed under 
a memorandum of settlement with the tanzanian revenue authority 
for the treatment of certain outstanding indirect tax refunds in respect 
of fuel levies and value added tax abg’s financial condition may be 
adversely affected if we do not achieve a successful resolution to 
these discussions
we have also noted the following as additional risks to the 2012 principal 
risks table following certain strategic and operational developments and
or continuing developments in the mining industry 
 land acquisitions due to the potential ramifications of increases in the 
cost of land acquisitions to support the expansion and continuation of 
our current mining activities and the potential impacts that delays in 
completing such acquisitions may have on our operations particularly 
at north mara we have decided to introduce land acquisitions as a 
standalone principal risk
 changes affecting the majority shareholding although discussions 
between barrick and china national gold did not ultimately result in 
any transaction affecting abg shares we are mindful of the impact 
that uncertainty created in the context of any change in the majority 
ownership structure could have on abg and its operations and the 
need to flag this risk to our wider stakeholder base
the following table sets out the principal risks affecting the abg group in 
more detail in addition to those risks stated there may be additional risks 
unknown to abg and other risks currently believed to be immaterial that 
could turn out to be material to the group these risks whether they 
materialise individually or simultaneously could significantly affect the 
group’s business and financial results in addition abg could also be 
affected by risks relating to the gold mining industry generally and the 
risks and hazards involved in the business of mining metals which are 
largely outside its control lastly due to the very nature of risks mitigating 
factors stated should not be viewed as assurances that actions taken or 
planned will be wholly effective additional discussions of certain trends 
and uncertainties that may affect our operations are provided as part of 
our operating review
annual report and accounts 2012 51
shareholder information financial statements overview performance governance risk key management responsibility 
strategic risks
single country risk
all of the abg group’s revenue is derived from production at its four facilities in tanzania in order to ensure continued growth the 
group needs to identify new resources and development opportunities through exploration and acquisition targets
vice president exploration and  
head of corporate development  
and investor relations
reserves and resources estimates
the abg group’s 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
chief operating officer and 
vice president exploration
changes affecting the majority shareholding
members of the barrick group hold approximately 74 of the issued share capital of abg making barrick the majority shareholder of 
the abg group as a result of this shareholding barrick is able to exercise significant influence over all matters requiring shareholder 
approval including the election of directors the approval of corporate transactions the issuance of ordinary shares and other equity 
securities and the payment of dividends furthermore the concentration of ownership may i delay or deter a change of control of the 
abg group ii deprive shareholders of an opportunity to receive a premium for their shares as part of a sale of the abg group and iii 
affect the market price and liquidity of the shares of abg
chief executive officer
financial risks
commodity prices
the abg group’s financial performance is highly dependent upon the price of gold and to a lesser extent the price of copper and silver  
the prices of these commodities are affected by a number of factors beyond abg’s control rapid fluctuations in pricing of these 
commodities will have a corresponding impact on abg’s financial position
chief financial officer and  
vice president finance
costs and capital expenditure
abg operates a cyclical business where fluctuations in operating cash flow and capital expenditure may adversely affect abg’s financial 
position in addition industry cost pressures notably as regards labour capital equipment and energy may affect abg’s cash flow and 
capital expenditure
chief financial officer and  
vice president finance
external risks
political legal and regulatory developments
the abg group’s exploration development and operational activities are subject to extensive laws and regulations governing various 
matters in the jurisdictions in which it operates changes to existing law and regulations or more stringent application or interpretation 
of current laws and regulations by relevant government authorities could adversely affect the abg group’s operations and development 
projects in particular as abg’s revenue is currently derived exclusively from the production from its facilities in tanzania its business 
operations and financial condition may be adversely affected by legal and regulatory changes and developments in tanzania or if existing 
mineral development agreements are not honoured by the tanzanian government
the group may also be adversely affected by changes in global economic conditions political andor economic instability in tanzania or 
any of its surrounding countries
vice president corporate affairs 
and general counsel
t axation reviews
the abg group’s financial condition may be adversely affected in the event of the introduction of revised royalty or corporate tax 
regimes in tanzania that go beyond agreements reached and contained in abg’s mineral development agreements
abg’s financial condition may also be adversely affected if it is unsuccessful in its current appeals andor discussions with the tra and
or the ministry of finance regarding outstanding tax assessments and unresolved tax disputes particularly as regards the application of 
v at relief to the group’s operations
chief financial officer and  
vice president finance
risk management continued
52 wwwafricanbarrickgoldcom mitigationcomment progress made in 2012
potential 
impact
change  
from 2011 further information
abg assesses a wide range of potential growth opportunities to build  
on its existing portfolio including external acquisition and development 
opportunities outside tanzania to maximise growth potential
 continuing evaluation of corporate 
development opportunities across  
the region
 completion of acquisition of aviva mining 
kenya limited
high a review of exploration activities 
is set out in the exploration review 
on pages 28 to 33
abg management has implemented a number of processes to 
continuously monitor and evaluate the company’s life of mine plans 
and production targets the abg group’s resources and reserves are 
updated annually abg follows ni 43101 of the canadian institute of 
mining metallurgy and petroleum when calculating its mineral reserves 
and resources
 reserves and resources committee in 
place to support senior leadership team 
and board
 commencement of operational review 
including review of management processes 
for the monitoring of production targets 
and longterm life of mine planning
high details of the abg group’s 
reserves and resources are set out 
on pages 88 to 91
details of abg’s management 
committees are provided on  
page 61 
as part of arrangements entered into prior to abg’s ipo abg entered 
into agreements with barrick for the management of relationships 
between the abg group and the barrick group key to this is the 
relationship agreement the principal purpose of which is to ensure that 
abg is capable of carrying on its business independently of the barrick 
group and that transactions and relationships with the barrick group 
are conducted at arm’s length and on normal commercial terms
 establishment of temporary transaction 
committee of the board in connection with 
the offer period applied to the company in 
connection with barrick’s discussions with 
china national gold
high further details as regards 
discussions relating to the majority 
shareholding are provided as part of 
the chairman and chief executive 
officer’s statements details 
regarding the relationship agreement 
are provided within the corporate 
governance report on page 63
abg’s strategic objective is to provide maximum exposure to the price  
of gold as such a nogoldhedging policy has been adopted abg  
has implemented a number of processes to assess its exposure to other 
commodity price fluctuations abg has also entered into hedging 
facilities in connection with copper silver and diesel price fluctuations 
and is reviewing appropriate hedging facilities to assist in the 
management of exposure to other commodities
 entry into hedging facilities for copper 
silver and diesel
high further information is set out 
in the market overview provided 
as part of the financial review on 
pages 35 to 36
abg management continuously monitors operational costs and capital 
expenditure it holds a conservative balance sheet and has a rigorous  
cash flow planning process to mitigate liquidity risks it also has a 
commercial credit facility to support general working capital purposes 
which remains undrawn
 availability of revolving credit facility 
for working capital purposes
 arrangements in place to hedge south 
african rand exposure
 completed project financing for 
bulyanhulu cil expansion project
high further information is set out in 
the financial review generally and 
as part of the chief executive 
officer’s statement
the group assesses legal and political risks as part of its evaluation of 
potential projects it actively monitors legal and political developments  
in countries in which its existing operations are located
the group actively engages in dialogue with the tanzanian  
government and legal policy makers to discuss all key legal and  
regulatory developments applicable to its operations in particular 
developments in connection with the tanzanian mining act and 
applicable environmental legislation
 renewal of special mining licences 
at north mara
 grant of certain waste rock permits 
at north mara
 grant of all government approvals for 
bulyanhulu cil expansion project
high further information is provided 
on page 10
the abg group has entered into a series of ongoing discussions with  
the tanzanian government with the goal of resolving outstanding tax 
disputes and recovering amounts owed and continues to review taxation 
matters generally on an ongoing basis
 movement to additional voluntary 1 
royalty rate
 memorandum of understanding executed 
for the treatment of certain outstanding 
indirect tax refunds in respect of fuel levies 
and v at
high further information is provided as 
part of the financial review
annual report and accounts 2012 53
shareholder information financial statements overview performance governance risk key management responsibility 
external risks continued
utilities supply
power stoppages fluctuations and disruptions in electrical power supply or other utilities could adversely affect group operations and 
impact its financial condition in addition an increase in power costs would make production more costly and alternative power sources 
may not be available 
chief executive officer  
chief operating officer  
and general managers
community relations
a failure to adequately engage or manage relations with local communities and stakeholders could have a direct impact on the abg 
group’s ability to operate at its existing operations
chief operating officer  
general counsel  
vice president corporate affairs  
senior director for environment  
and community relations
land acquisitions
progression of the abg group’s mining activities is in certain instances dependent upon the ability of the group to complete additional 
land acquisitions required to support current mine plans increases in the cost of land acquisitions required to support the expansion and 
continuation of our current mining activities andor delays in completing such acquisitions could have a material adverse effect on 
operating conditions particularly at north mara
chief executive officer chief operating 
officer vice president corporate affairs 
and general counsel
operational risks
v ariations to production and cost estimates
the abg group’s actual production and costs may vary from estimates of future production cash costs and capital costs for a variety 
of reasons including actual ore mined varying from estimates of grade tonnage dilution and metallurgical and other characteristics 
shortterm operating factors relating to ore reserves revisions to mine plans risks and hazards associated with mining natural 
phenomena and unexpected labour shortages or strikes costs of production may also be affected by a variety of factors including 
changing wastetoore ratios ore grade metallurgy labour costs the cost of commodities general inflationary pressures and currency 
exchange rates failure to achieve production or cost estimates could have an adverse impact on the abg group’s future business 
cash flows profitability results of operations and financial condition
chief executive officer chief financial 
officer chief operating officer and 
general managers
loss of critical processes
the abg group’s mining processing development and exploration activities depend on the continuous availability of its operational  
infrastructure in addition to reliable utilities and water supplies and access to roads any failure or unavailability of operational 
infrastructure for example through equipment failure or disruption could adversely affect production output andor impact exploration 
and development activities deficiencies in core supply chain availability could also adversely affect group operations
chief operating officer  
and general managers
environmental hazards and rehabilitation
the abg group’s activities are subject to environmental hazards as a result of the processes and chemicals used in its extraction and 
production methods the group may be liable for losses and costs associated with environmental hazards at its operations have its 
licences and permits withdrawn or suspended as a result of such hazards or may be forced to undertake extensive cleanup and 
remediation action in respect of environmental hazards and incidents relating to its operations any such action could have a material 
adverse effect on the group’s business operations and financial condition
chief operating officer senior director 
for environment and community 
relations and general managers
employee contractor and industrial relations
the abg group’ s business significantly depends upon its ability to recruit and retain qualified personnel in particular members o f the 
senior leadership t eam and its skilled team of engineers and geologists the loss of skilled workers and a failure to recruit and train 
equivalent replacements may negatively impact on abg’ s operations and production the abg group’ s business also depends on good 
relations generally with its employees and employee representative groups such as trade unions a breakdown in these relations could 
result in a decrease in production levels andor increased costs which in turn could have a material adverse effect on the group’ s business 
results of operations and financial condition 
in addition to employees abg depends on certain key contractors interruptions in contracted services could result in production 
slowdowns andor stoppages
vice president 
organisational effectiveness
security  trespass and vandalism
abg faces certain risks in dealing with trespass theft corruption and vandalism at its mines and unauthorised smallscale mining in 
proximity to and on specific areas covered by abg’s exploration and mining licences the impact of such risks may have an adverse effect 
upon abg’s operations and financial condition
chief operating officer general 
counsel and director of security
risk management continued
54 wwwafricanbarrickgoldcom mitigationcomment progress made in 2012
potential 
impact
change  
from 2011 further information
capacity of backup or alternative power generation at all of our 
operations has been increased to maintain critical systems
 continuing upgrades to backup power  
at operations
 ongoing review of alternate power supplies
high further information on the status 
of power supply is provided as 
part of the chief executive 
officer’s statement and the 
operating review 
in addition to existing corporate social responsibility programmes  
the group is implementing a number of initiatives to improve and  
build on local community relations and continues to assess and where 
necessary increase its social management team’s capacity generally
 development of social management plans 
for buzwagi and north mara
 progression of funding initiatives under 
the abg maendeleo fund
high details of the group’s community 
relations activities and community 
investments are set out in the 
corporate responsibility section
the abg group assesses land acquisition requirements as part of its 
review of life of mine planning and reviews conducted as part of 
regulatory and legal matters
 establishment of land acquisition 
working group
high a discussion of land acquisition 
requirements in the context 
of north mara is provided as 
part of the chief executive 
officer’s statement
abg’s management has implemented a number of processes to 
continuously monitor and evaluate abg’s production and cost  
estimates and targets
 commencement of operational review 
including a review of management  
processes for the monitoring of production 
targets and longterm life of mine planning
high further discussion regarding 
production and cost estimates 
and the objectives of the 
operational review is provided 
as part of the chief executive 
officer’s statement
management assesses the critical components of abg’ s operational 
infrastructure on a continuous basis in addition to external resources 
and when required abg has established channels through the support of 
the barrick group network to address critical disruptions to its technical 
services and plant equipment supply chain management and support are 
assessed and reviewed against business requirements on a regular basis
 further upgrades to inventory management 
procedures and critical spares procedures
high further discussion regarding 
inventory movements during the 
year are provided as part of the 
financial and operating reviews
the group has committed itself to the application of global standards  
and implementing relevant international council on mining and  
metal practices and the international cyanide code standards 
compliance with applicable environmental standards is assessed  
on a continuous basis remediation and rehabilitation costs are  
assessed and reviewed annually
 bulyanhulu recertification under the 
international cyanide code
 development of nonmineral waste 
management plans
 continuing development of actions  
for discharge of epo at north mara
high details of the abg group’s 
environmental activities and 
compliance programmes are 
set out in the corporate 
responsibility section 
abg regularly assesses its staff recruitment and retention policies to  
assist with labour stability and maintains appropriate investment in 
training and development to safeguard the skills of its workforce it is  
also focused on furthering the nationalisation of its workforce in 
tanzania and participates in a number of training programmes to 
help develop local industry expertise assessments of employee and 
key contractor relationships are undertaken on a regular basis to 
ensure that the relevant support balances business requirements and 
wider expectations
 continued progression of programmes for 
workforce localisation
 further progression of industrial relation 
and employee consultation initiatives
high further details on employment 
practices and related  
initiatives are provided in the 
corporate responsibility section
measures have been taken to protect employees mines and production 
facilities from various security and theft risks steps include increasing 
existing security personnel the installation of additional perimeter 
fencing surveillance equipment and the imposition of additional 
security checks and procedures where appropriate the group 
continues to work in collaboration with local law enforcement to address 
securityrelated matters in addition abg adheres to the voluntary 
principles as part of its membership of the barrick group
 further upgrades to security infrastructure
 increased training of security  
personnel across all operations
 progression of initiatives launched by 
search for common ground
high further information on security 
developments and initiatives 
can be found in the corporate 
responsibility section
annual report and accounts 2012 55
shareholder information financial statements overview performance governance 56 wwwafricanbarrickgoldcom
board of directors
director biographies
1 derek pannell age 66  
acting chairman of the board
skill and experience for the reporting period 
mr pannell was acting chairman of the board 
mr pannell is a metallurgical engineer with over 
40 years of experience in the mining and metals 
industry he is former chair of the mining 
association of canada and a board member of 
the international council on mining and metals 
he holds several other board appointments 
including agrium inc and is chairman of the 
board of directors of brookfield infrastructure 
partners lp  mr pannell was formerly president 
chief operating officer and chief executive 
officer of noranda inc and falconbridge ltd 
mr pannell holds a bachelor of science degree 
in engineering from imperial college london 
england and is a professional engineer 
registered in quebec and peru he is also an 
associate of the royal school of mines and a 
fellow of the canadian academy of engineers
executive directors
2 greg hawkins age 44 
chief executive officer
skill and experience mr hawkins is the chief 
executive officer of the abg group he was 
previously employed by barrick where since 
june 2006 he served as chief financial officer 
of the australia pacific business unit from 
1999 to 2006 mr hawkins served in finance 
management roles for barrick australiaafrica 
and for homestake mining before its acquisition 
by barrick mr hawkins also previously held 
roles as the finance manager for normandy 
mining and as an audit manager for deloitte 
he holds a bachelor of commerce degree from 
the university of western australia he is a 
chartered accountant and a member of the 
australian institute of company directors
3 kevin jennings age 43 
chief financial officer
skill and experience for the reporting period 
mr jennings was the chief financial officer of 
the abg group he was previously employed by 
barrick where he served from august 2009 as 
vicepresident of corporate development mr 
jennings has held a variety of senior 
management positions in the mining industry 
over the last 14 years including director 
business optimisation at xstrata plc director 
strategic business analysis at falconbridge ltd 
1
3
5
7
9
2
4
6
10
8 annual report and accounts 2012 57
shareholder information financial statements performance overview governance
and chief financial officer at american racing 
equipment inc a wholly owned subsidiary of 
falconbridge mr jennings holds a bachelor of 
arts degree in economics from the university 
of western ontario and a bachelor of 
administrative studies with honours in 
accounting from y ork university he is a 
chartered accountant
nonexecutive directors
4 andre falzon age 58 
independent nonexecutive director
skill and experience mr falzon is an 
independent nonexecutive director of the 
abg group he is a senior financial executive 
with over 25 years of financial and management 
experience within the mining industry 
including a period as vice president and 
controller at barrick between 1994 and 2006 
he is a director of aurizon mines ltd he holds 
a bachelor of commerce degree from the 
university of toronto canada and is a cga 
canada and a cpa ca canada
5 ambassador juma v  mwapachu age 70 
independent nonexecutive director
skill and experience ambassador mwapachu is 
an independent nonexecutive director of the 
abg group ambassador mwapachu has held 
a number of senior positions in both the public 
and private sector of tanzania and was 
appointed as tanzania’s ambassador to france 
from 2002 to 2006 he was the founding 
secretary general of the chamber of 
commerce industry and agriculture and has 
served as chairman of the confederation of 
tanzania industries and chairman of the east 
african business council he has played a 
leading role in the regional integration of east 
africa holding the position of secretary general 
of the east african community prior to his 
appointment to the board and currently holds 
the position of global president of the society 
for international development ambassador 
mwapachu holds a bachelor of laws degree 
with honours from the university of east 
africa a post graduate degree in international 
law from the indian academy doctorates in 
literature honoris causa from the university 
of dar es salaam and political sciences 
honoris causa from the national university 
of rwanda
6 david hodgson age 65 
independent nonexecutive director
skill and experience mr hodgson is an 
independent nonexecutive director of the 
abg group he was previously employed by 
the anglo american and de beers group of 
companies for over 30 years and from 
november 2001 through to his retirement in 
april 2005 he served as the chief operating 
officer of anglogold ashanti he has also held 
a number of previous nonexecutive public 
company directorships at auryx gold mines 
moto gold mines limited uranium one inc 
and goliath gold mining limited mr hodgson 
is currently a nonexecutive director of montero 
mining a rare earth company mr hodgson 
holds a bsc in civil engineering from the 
university of witwatersrand in johannesburg 
south africa a bsc mining honours from the 
royal school of mines in london and b comm 
majors in economics and business economics 
from unisa in south africa he also attended 
an advanced management program at harvard 
university in the usa
7 michael kenyon age 63 
independent nonexecutive director
skill and experience mr kenyon is an 
independent nonexecutive director of the 
abg group mr kenyon has more than 35 years 
of experience in the mining industry and is a 
geologist by training he is executive chairman 
of the board of directors at detour gold 
corporation and chairman of the board of 
directors at troon ventures ltd he has 
previously been president and chief executive 
officer at both canico resource corp and 
sutton resources ltd and a director of 
cumberland resources ltd he holds a master 
of science geology degree from the university 
of alberta in canada he was also the recipient 
of the 2005 developer of the y ear award from 
the prospector and developers association of 
canada in recognition of his accomplishments
8 stephen galbraith age 41 
nonexecutive director
skill and experience mr galbraith is a 
nonexecutive director of the abg group 
he has been employed by barrick since august 
2000 in treasury and finance functions and 
is currently managing director of barrick 
international barbados corporation mr 
galbraith previously held the role of audit 
manager for pricewaterhousecoopers he 
holds a bachelor of arts degree in accountancy 
from strathclyde university is a member of 
the institute of chartered accountants of 
scotland and is a chartered financial analyst 
charter holder
9 rick mccreary  age 50 
nonexecutive director
skill and experience mr mccreary is a 
nonexecutive director of the abg group and 
senior vice president corporate development 
of barrick he joined barrick in april 2011 and 
has overall responsibility for barrick’s global 
corporate development activities including 
corporate development evaluations and 
special projects prior to joining barrick mr 
mccreary worked in mining investment 
banking for over 14 years culminating as head 
of cibc world markets’ global mining 
investment banking group prior to his career in 
mining investment banking he worked in the 
norandafalconbridge organisation for 8 years 
in various areas including metals marketing 
geophysics geological engineering and 
technology development mr mccreary holds 
an mba in finance and strategy from mcgill 
university and a msc and bscenghons in 
geological engineering from queen’ s university
10 kelvin dushnisky  age 49 
nonexecutive director
skill and experience mr dushnisky is a 
nonexecutive director of the abg group and 
senior executive vice president of barrick mr 
dushnisky joined the legal department of 
barrick in april 2002 and presently has global 
responsibility for the government relations 
permitting and approvals corporate 
responsibility investor relations and 
communications functions prior to joining 
barrick mr dushnisky was a managing 
director at altara securities inc and has also 
served as vice president of sutton resources 
limited and vice chair general counsel and 
a founding director of eurozinc mining 
corporation he has served on the boards of 
directors of a number of publicly listed 
companies and trade associations mr 
dushnisky holds a bsc hon degree from 
the university of manitoba and msc and jd 
degrees from the university of british columbia 58 wwwafricanbarrickgoldcom
senior management
senior management biographies
marco zolezzi age 57  
chief operating officer
skill and experience mr zolezzi was previously 
employed as director of technical services for 
barrick’s australia pacific region prior to that 
mr zolezzi held a number of senior project roles 
in the industry including five years with newcrest 
mining where he was general manager at the 
telfer mine taking it from the project stage 
through to full production as well as 13 years 
with wmc resources in a number of senior 
operational and technical roles in total mr 
zolezzi has over 30 years of experience in 
complex open pit and underground operations 
in australia and south africa with a variety of 
operational technical and project management 
roles in addition to diplomas in mining and 
mechanical engineering from witwatersrand 
institute of technology in south africa mr 
zolezzi holds bachelor degrees in applied 
science mechanical from the new south w ales 
institute of technology and in applied science 
mining from the western australian institute 
of technology
deodatus mwanyika age 50  
vice president corporate affairs
skill and experience mr mwanyika was 
previously employed by barrick which he 
joined in 1999 as a legal consultant and where 
he occupied various managerial positions over 
the last 12 years culminating in his appointment 
in 2008 as executive general manager 
tanzania mr mwanyika holds a bachelor of 
law degree with honours from the university 
of dar es salaam and a masters in law from the 
university of cambridge mr mwanyika is a 
member of the t anganyika law society and the 
east african law society
peter spora age 43  
vice president exploration
skill and experience mr spora was previously 
employed by barrick where he served as 
principal geologist africa from 2006 to 2008 
and exploration manager africa from 2008 to 
2010 mr spora has over 18 years of experience 
as a geologist in australia and africa he holds 
a bachelor of applied science in geology 
degree from the university of technology 
sydney australia he is a member of the 
australian institute of mining and metallurgy 
ausimm a member of the tanzanian 
chamber of minerals and energy a member of 
the kenyan chamber of mines and is a member 
of the society of economic geologists
katrina white age 37  
general counsel and company secretary
skill and experience ms white was previously 
employed by barrick where she served as 
regional general counsel and company 
secretary for barrick australia africa 
subsequently barrick australia pacific from 
2005 to 2010 prior to joining barrick ms white 
was employed as a senior associate at hunt  
humphry in australia ms white has an 
honours degree in law from the university of 
western australia she is admitted to practice 
as a barrister and solicitor in western australia 
the high court of australia and the federal 
court of australia 
andrew w ray  age 49  
head of corporate development 
and investor relations 
skill and experience mr wray was previously 
employed by jp morgan cazenove where he 
was a director in the corporate finance team 
mr wray has over 14 years of experience in 
advising a range of mining and other companies 
in their capitalraising activities and in other 
strategic objectives prior to joining jp morgan 
mr wray worked for the kuwait investment 
office in london dealing with their portfolio of 
investments in spain mr wray holds a bachelor 
of arts honours degree in modern languages 
from university college london
peter geleta age 49  
vice president organisational 
effectiveness 
skill and experience mr geleta has extensive 
experience on the african continent having 
worked across a number of african countries 
in various operational and corporate roles he 
joined barrick in 2007 holding a number of 
roles across the organisation including 
organisational effectiveness director for 
barrick africa human resources director for 
the australia pacific region and general 
manager for barrick’s cowal gold mine in new 
south w ales before joining barrick mr geleta 
worked for anglogold ashanti for 25 years 
where he held a number of roles including head 
of human resources and sustainability for 
anglogold ashanti’s africa operations and 
general manager of the navachab mine in 
namibia mr geleta holds an executive mba 
qualification from the university of cape town
in addition to abg’s executive directors listed on the previous page 
the senior leadership t eam includes the following  annual report and accounts 2012 59
shareholder information financial statements performance overview governance
corporate governance
effective governance
dear shareholders
as previously noted 2012 has been a challenging year for abg the latter 
half of which being impacted by the prolonged offer period applicable to 
the company as a result of discussions between china national gold and 
barrick whilst this predominantly impacted the workload of management 
it also required a refocusing of board and certain committee activities 
notably the transaction committee of which i formed part although the 
sale process was ultimately unsuccessful there were several positive 
outcomes in particular the intense due diligence process and associated 
learning have been incorporated into several initiatives which were 
underway prior to the offer period as part of a major review of the 
company’s structure and costs culminating in the board’s request for 
management to perform an operational review the key objectives of 
this are to drive improved returns from the asset base and enhance the 
certainty of performance delivery in the future 
in addition to this throughout the year we have continued to refine our 
governance and controls processes and achieved a satisfactory conclusion 
to our overall annual risk management and internal controls assessment 
we also completed a performance and effectiveness evaluation for the 
reporting period in order to satisfy requirements for annual performance 
evaluation under the uk corporate governance code 
“ a commitment to progressing effective leadership 
and controls for our business environment ”
derek pannell 
acting chairman of the board
during the year mr dushnisky and mr mccreary were appointed to the 
board following the departures of mr cross and mr regent both of whom 
we thank for their guidance and support in the development of abg as a 
public company following the expiry of the offer period abg is in a 
position to review options for additional director appointments to build 
on the strengths and calibre of our existing board members in this regard 
it should be noted that neither i nor mr jennings will seek reelection 
at the forthcoming agm mr dushnisky will succeed me as chairman 
of board
looking forward in 2013 the board will seek to build upon the progress 
made in abg’s governance and controls environment notably through 
the implementation of further measures and procedures to address the 
salient aspects of ongoing operational and strategic reviews in connection 
with this the board has recently decided to form a technical committee 
the principal purpose of which will be to supervise and review abg’s 
planning and capital allocation procedures the procedures underpinning 
abg’s reserves and resources committee and abg’s exploration 
programmes the board under the guidance of mr dushnisky will 
also review additional requirements introduced by the new edition of 
the uk corporate governance code which will apply to the 2013 
reporting process
2012 key activities
 formation of transaction committee to oversee matters relating to 
any potential offer for the company by china national gold 
 review of key requirements and measures for the maintenance of 
ordinary business throughout a prolonged offer period
 review of core retention requirements for abg personnel during 
a prolonged offer period
 commencement of strategy and risk profile reviews as part of the 
operational review 
 further review of requirements for risk management and operational 
processes to support business objectives 
 annual performance evaluation and effectiveness review  60 wwwafricanbarrickgoldcom
board composition
board balance
as at 31 december 2012 the board comprised a nonexecutive acting 
chairman two executive directors and seven nonexecutive directors 
of whom four were independent 
skills and experience
the majority of our directors have considerable knowledge and experience 
of the mining industry and bring other relevant experience to the board 
to assist abg in achieving its strategic goals director biographies are 
provided on pages 56 and 57 an overview of the composition of board 
skills is provided opposite we review board composition regularly to 
ensure the range and breadth of skills provided as a result of director 
appointments remains appropriate for our business 
diversity
abg strives to attract a broad mix of individuals from both the traditional 
and nontraditional mining labour markets in order to create a diverse 
workgroup and maintain a unique company culture generally it is abg’s 
policy to hire the best candidates for all positions at all levels irrespective 
of gender we assess all candidates or positions in this context including 
candidates for board appointments
board changes during 2012
as previously noted mr dushnisky and mr mccreary were appointed 
during the year following mr regent’s departure in june 2012 in addition 
mr cross stepped down from his position as a director in march 2012 
corporate governance continued
abg business management framework
values  code 
of conduct
business 
management 
framework
group policies 
procedures 
 standards
departments 
mine site rules 
 requirements
group policy 
guidelines
mandatory
mandatory
abg
compliance 
requirement
mandatory
for use in understanding 
and implementing 
compliance obligations
mandatory
dictated in accordance 
with stated functional and 
mine site requirements
board skills
as at 31 december 2012
 
geology   
engineering  
financial   
african and regional affairs  
board composition
as at 31 december 2012
 
 
executive    
nonexecutive   
board independence
as at 31 december 2012
 
nonindependent   
independent 
abg’s business management framework forms an integral 
part of our global compliance programme it sets out the key 
corporate policies procedures standards and practices that 
apply to the abg group and its business for the management 
of economic social political environmental legal and 
governance factors affecting our operations
all members of the abg group our material operations 
support functions and every abg director officer employee 
and all other members of abg personnel are required to 
comply with the abg business management framework and 
all other guidance and standards that apply to their respective 
roles and positions specific obligations also extend to abg 
contractors other associated parties and members of abg 
supply chains annual report and accounts 2012 61
shareholder information financial statements performance overview governance
board
responsible for the overall management of our organisation and our business
senior leadership team
day to day management of our business and operations and responsibility for monitoring detailed 
performance of all aspects of our business 
 
management committees
further support the board and senior leadership team
general managers and functional heads
work with the senior leadership team to manage our operations and business and to progress business goals
 
sets standards values policies 
and strategic aims
ensures we have the resources in 
place to meet our objectives
monitors and reviews
– material strategic issues
– financial performance
– risk management
board committees
specific review and oversight functions
 
–  reviews and monitors
 financial statements
–  oversees relationships 
 with external auditors
– oversees external 
 audit process
–  reviews internal 
 audit plans  
 
 
 
–  oversees the development
 of strategy and policy on
 environmental csr and 
 security matters
–  reviews effectiveness of
 environmental csr and 
 security management 
 programmes and systems    
 
 
– sets reviews and 
 recommends overall 
 compensation 
 policy and strategy
–  reviews and 
 approves compensation 
 arrangements for 
 executive directors 
 and senior management    
 
 
– makes recommendations
 to the board on its
 composition and that 
 of its committees   
reserves  resources
committee
executive investment
committee
 
audit
committee
compensation
committee 
ehss
committee
nomination
committee
transaction
committee
the disclosure
panel
 
community investment
committee
 
supported by senior leadership team
– reviewed and monitored  
 matters in the context  
 of any potential transaction  
 relating to abg shares  
 as a result of barrick   
 discussions with 
 china national gold  
responsibilities across our governance framework
abg’s corporate governance structure is founded on the basis of sound business practice and in accordance with applicable 
corporate governance standards accordingly responsibilities are allocated between our board its committees our senior 
leadership t eam and other members of senior management to ensure that our business operates as it should on a day to day basis 62 wwwafricanbarrickgoldcom
retirement and reelection
directors appointed by the board since the 2012 agm are required to 
offer themselves for reelection by the shareholders at the 2013 agm 
under the company’s articles of association and we are mindful of 
requirements for annual reelection under the uk corporate governance 
code with the exception of mr pannell and mr jennings all directors 
will offer themselves for reelection at the forthcoming agm the board 
determines that all of these directors are eligible for reelection
board leadership
chairman and chief executive officer
in line with best practice the roles of chief executive officer and 
chairman and their related responsibilities are separated the divisions 
of responsibilities have been set out in writing and agreed by the board
abg’s chairman and any acting chairman is principally responsible for 
the leadership of the board and ensuring that the board plays a full and 
constructive part in the development and determination of the company’s 
strategy and overall commercial objectives 
abg’s chief executive officer is primarily responsible for all executive 
management matters affecting abg and is principally responsible for 
running the company’s business all members of executive management 
report directly to him 
senior independent director
as noted below the position of senior independent director “sid” 
remained vacant during the latter part of the year as a result of the 
prolonged offer period we will look to recruit for this position in 2013 
board effectiveness
board meetings and attendance
board decisions are predominantly made by achieving a consensus at 
board meetings in exceptional circumstances decisions may be taken 
by the majority of board members questions arising at any meeting are 
determined by a majority of votes in the case of an equality of votes 
abg’s articles of association do not provide the chairman with a second 
corporate governance continued
or casting vote all directors are required to take decisions objectively 
and in the best interests of the company
as part of their duties as directors abg’s nonexecutive directors are 
expected to apply independent judgement to contribute to issues of 
strategy and performance and to scrutinise the performance of 
management
the board is scheduled to meet at least four times a year and at such other 
times as are necessary to discharge its duties the board met a total of eight 
times in 2012 five meetings were held in person at the company’ s london 
offices three meetings were held by teleconference details of individual 
attendance are provided below meetings included a formal strategy review 
with senior management going forward the board aims to schedule 
meetings to allow for at least one scheduled meeting per year to be held in 
t anzania so as to provide the board with an opportunity to further develop 
its relationship with senior managers and the wider abg workforce
board briefings and development
the board receives monthly management reports and quarterly reports 
outlining all material operational financial and strategic developments 
these ensure that board members remain properly briefed on the 
performance and financial position of the abg group board and 
committee papers are circulated prior to all meetings to allow directors 
to be briefed in advance of discussions all board meetings include a 
quarterly business and financial review to ensure that in addition to 
specific scheduled matters and any other business core operational 
matters are reviewed on a continuous basis
in addition to scheduled board meetings all directors have access 
to members of the senior leadership team and to whatever further 
information they need to perform their duties and to satisfy their 
responsibilities abg’s independent nonexecutive directors and 
committee chairmen meet with members of the senior leadership team 
to receive more indepth briefings on board and committee matters 
whenever required or requested in addition all directors continue to have 
free access to visit operations outside scheduled board arrangements 
board and committee attendance
board 
meetings
audit 
committee
compensation 
committee
nomination 
committee
ehss 
committee
transaction 
committee
number 
attended
maximum 
possible
number 
attended
maximum 
possible
number 
attended
maximum 
possible
number 
attended
maximum 
possible
number 
attended
maximum 
possible
number 
attended
maximum 
possible
aaron regent 280 na26110 na 0 na
greg hawkins 8 8 5 na 5 na 1 na 5 na 13 13
kevin jennings 8 8 5 na 0 na 0 na 0 na 13 13
derek pannell 8 8552 na 1155 13 13
andre falzon 8855660 na 0 na 0 na
stephen galbraith 8 8 3 na 1 na 0 na 5 na 0 na
michael kenyon 7845560 na 0 na 13 13
ambassador juma v  mwapachu 7 8 0 na 0 na11550 na
david hodgson 8 8 0 na 4 6 0 na 5 5 12 13
kelvin dushnisky 480 na2600030 na
richard mccreary 4 8 0 na 0 na 0 na 0 na 0 na
 directors appointed midyear  director resigned midyear annual report and accounts 2012 63
shareholder information financial statements performance overview governance
board training and development needs are reviewed on an ongoing basis 
ordinarily training standards and requirements form part of board 
evaluation criteria 
directors may take independent professional advice as necessary at abg’s 
expense in the furtherance of their duties in addition to this each board 
committee is entitled to seek independent professional advice at abg’s 
expense where necessary to assist or guide the committee in the 
performance of its functions
summary of the board’ s work in 2012
the board focused on the following areas in 2012
 strategy management
 operational and financial performance reviews
 corporate policy and compliance review
 growth opportunities and exploration project reviews
as part of the corporate policy and compliance reviews the board in 
collaboration with its committees commenced a review of specific 
compliance standards in order to progress standards that provide for 
improved alignment with the company’s operating environment and risk 
appetite this work will continue into 2013 in addition as part of strategy 
and growth reviews the board commenced a further evaluation process 
of all of the company’s growth projects to ensure prioritisation of projects 
that will drive profitable returns and production levels again reviews in 
this area will continue into 2013 as part of ongoing operational and 
strategy reviews succession planning which was previously affected by 
the prolonged offer period will also be progressed further in 2013 
findings from the 2012 annual performance review will help us to further 
refine board targets for 2013 
internal control
the board is responsible for the abg group’s system of internal control 
and risk management and for reviewing its effectiveness in line with this 
responsibility the board has established ongoing processes and systems 
for identifying evaluating and managing those significant risks that the 
group faces abg’s system of internal controls and risk management takes 
into account the recommendations contained in the turnbull guidance 
on internal systems and controls published by the financial reporting 
council in october 2005 the “turnbull guidance” the system is 
designed to manage rather than eliminate the risk of failure to achieve 
abg’s business objectives and can only provide reasonable and not 
absolute assurance against material misstatement or loss
the board principally bases its monitoring of internal controls on its review 
of management reports and assessments and on the quarterly reports it 
receives on the status of abg’s internal control environment this is 
supported by the risk profile reviews that abg’s internal audit function 
carries out to help the board identify and manage the most significant risks 
and events that could affect the company’s operations financials and 
performance where necessary the board is assisted by its committees in 
reviewing internal systems and controls particularly the audit committee 
which is responsible for reviewing the effectiveness of the group’s internal 
control and financial risk management systems an overview of the 
governance structure used for abg’s approach to risk management and 
the processes and procedures used in the context of risk management is 
provided as part of the risk management section of this report
in compliance with its obligations the board conducted an annual 
assessment of the effectiveness of the company’s risk management and 
internal control systems for the reporting period the review covered 
all material controls including financial operational and compliance 
controls in conjunction with abg’s internal audit function and members 
of the senior leadership team the board conducted a specific assessment 
of internal controls which considered all significant aspects of internal 
control for the reporting period during the course of its review of the 
system of internal control the board did not identify or hear of any 
failings or weaknesses that it determined to be material therefore a 
confirmation of any necessary actions undertaken is not required
relationship with shareholders
dialogue with the investment community
abg has a designated investor relations team which acts as the primary 
point of contact with the investment community and is responsible for 
maintaining abg’s ongoing relations with investors and shareholders 
generally abg aims to meet with investors and analysts at least twice 
a year to discuss group performance and respond to queries abg also 
conducts periodic telephone calls and meetings with the investment 
community to discuss results and participates in mining conferences to 
meet with current and prospective investors in addition to its annual and 
halfyear reports abg publishes quarterly reports to the market which 
provide further information on production and financial results and 
updates on its business and operations
abg’s investor relations programme was impacted by certain regulatory 
restrictions imposed as a result of a prolonged offer period during the 
second half of 2012 
majority shareholder
abg was a wholly owned subsidiary of barrick prior to its ipo in march 
2010 barrick continues to hold approximately 74 of abg making it the 
group’s majority shareholder as a result of this abg continues to have 
access to the barrick group for a number of support services and receives 
strategic shareholder support for its initiatives and goals abg’ s relationship 
with barrick is governed by the terms of a relationship agreement the 
principal purpose of which is to ensure that abg is capable of carrying on 
its business independently of the barrick group and that transactions and 
relationships with the barrick group are conducted at arm’s length and on 
normal commercial terms the relationship agreement will continue for so 
long as abg is listed on the london stock exchange and barrick owns or 
controls at least 15 of abg’s issued share capital or voting rights 64 wwwafricanbarrickgoldcom
corporate governance continued
 discussion with company secretary
each director specifically discussed his evaluation feedback with the 
company secretary for purposes of discussing individual performance 
and future development needs
 
assessment for the committees 
the evaluation results were used to produce a performance report for 
discussion and debate in order to agree work plans and actions for 2013
 
assessment for the board
board evaluation results were used to produce a performance report 
for presentation to the board for purposes of discussion and debate 
in order to agree work plans and actions for 2013  
 key performance targets and actions for 2013
–  assessment of terms of reference effectiveness of members’ skills 
 experience and qualifications
– work plans and actions for 2013 individually set by each committee
key performance targets and actions for 2013
– development of succession planning
– further enhancement of risk management procedures
– progression of strategic and operational review
– review of requirements for abg’s compliance and
 governance environment
committee evaluation focus 
 roles and responsibilities
 composition appointments
 skills experience and training
 attendance contribution
 internal relationships
 leadership
 procedures and 
 internal controls
board evaluation focus 
 establishment and role
 compensation appointments
    skills experience and training
 attendance at meetings
    contribution internal 
 relationships
 leadership
 strategic aims and objectives
 risk management
 procedures and internal controls
 communication with
    shareholders and others
performance evaluation
the annual performance evaluation of the board and its committees was conducted under the guidance of the company secretary 
 by way of anonymous questionnaires the questionnaire focused on a range of key topics the findings of which will be used to help 
 formulate key targets and actions for 2013 annual report and accounts 2012 65
shareholder information financial statements performance overview governance
the relationship agreement provides barrick with certain director 
appointment rights in line with a sliding scale structured as follows
barrick percentage shareholding barrick director appointment rights
40 or more the higher of three nonexecutive 
directors and the maximum that may 
be appointed under the uk corporate 
governance code
25 up to 40 the higher of two nonexecutive 
directors and one less than the 
maximum number of nonexecutive 
directors that may be appointed under 
the uk corporate governance code 
15 up to 25 the higher of one nonexecutive 
director and two less than the 
maximum number of non
executive directors
in addition to director appointment rights and subject to certain 
exceptions as part of the terms of the relationship agreement barrick 
has undertaken that members of the barrick group will not carry on the 
exploration of gold or silver in africa or acquire whether through an asset 
purchase or the purchase of securities a gold or silver mining business in 
africa that competes with abg without first giving abg the option to 
exercise certain rights of first refusal for so long as barrick holds 30 or 
more of the issued share capital or voting rights of abg abg has given 
a reciprocal noncompete commitment to barrick in this regard
agm
abg’ s 2013 agm will be held on 18 april 2013 at 200pm uk time the 
business of the meeting will be conducted in accordance with companies 
act 2006 requirements and standards promoted by the uk corporate 
governance code the chairman and the chairmen of the audit 
compensation and nomination committees will be available to answer 
questions put to them by shareholders at the meeting the agm notice 
is included in the documentation that has been provided with this report 
and is also available on the company’s website in accordance with best 
practice the notice has been sent to shareholders at least 20 business days 
prior to the date of the meeting
conflicts of interest
mr dushnisky mr galbraith and mr mccreary are nominee directors 
appointed by barrick these individuals hold a number of cross
directorships with members of the barrick group which give rise to 
situations in which these directors could have a direct or indirect interest 
that conflicts or possibly may conflict with those of abg in addition as 
a result of their employment within the barrick group these individuals 
also hold interests under barrick’s restricted stock unit plan and other 
employee incentive plans 
mr hawkins mr jennings and certain other members of abg’s senior 
management hold interests under barrick’s restricted stock unit plan 
these interests were acquired prior to joining abg as part of previous 
employment within the barrick group and are not deemed to be 
material interests 
the companies act 2006 requires directors to avoid situations where 
they have or can have a direct or indirect interest that conflicts or may 
possibly conflict with company interests however the act does allow 
directors of public companies to authorise conflicts and potential conflicts 
of interest where a company’s articles of association contain a provision 
to that effect abg’s articles of association contain such provision and a 
procedure for this in accordance with this procedure the conflicts outlined 
above were declared and authorised by the board 
the monitoring and if appropriate authorisation of any actual or potential 
conflict of interest is an ongoing process directors are required to notify 
the company of any material changes in positions or situations that have 
already been considered and any new situations in addition directors are 
required to declare interests in potential or actual transactions and are 
required to abstain from voting on such transactions subject to permitted 
exceptions if a question arises as to whether any interest of a director 
prevents him or her from voting or being counted in a quorum in the 
context of a potential or actual transaction the matter is referred to the 
chairman whose findings are final and conclusive in the context of 
questions relating to any such conflict of the chairman the question may 
ultimately be decided by a resolution of the other directors
specifically as regards nominee directors appointed by barrick the 
relationship agreement provides that if any transaction or arrangement 
arises directly between a member of the barrick group and a member 
of the abg group and does or could in the opinion of a majority of 
directors excluding any directors appointed by barrick give rise to 
a conflict of interest between abg and any director appointed by barrick 
any such matter must be approved and authorised at a duly convened 
board meeting or in writing by a majority of directors excluding any 
directors appointed by barrick prior to the company taking further 
action in relation to such matter 
the board reviews conflicts of interest on a periodic basis and maintains 
a record of all declared conflicts during the offer period applicable to the 
company in the latter half of 2012 the board specifically reviewed the 
rules applicable to conflicts of interest taking advice where necessary from 
external counsel in the context of the discussions between china national 
gold and barrick and barrick nominee directors’ participation in 
board meetings 
save for the matters set out above no other conflicts of interest were 
disclosed to the board during the reporting period 66 wwwafricanbarrickgoldcom
corporate governance continued
corporate governance compliance
for the year under review as a uk company with a premium listing on 
the main market of the london stock exchange abg is required to make 
certain statements regarding the way it is governed as required by the uk 
corporate governance code accordingly this report explains how abg 
has applied and complied with the main principles of the uk corporate 
governance code during 2012
generally abg seeks to apply the provisions of the uk corporate 
governance code wherever possible however during the reporting 
period the structure of the board and its committees was impacted by the 
departure of mr cross and mr regent and more fundamentally by the 
imposition of the offer period and related restrictions as a result of the 
discussions between china national gold and barrick something which 
ultimately restricted the company from recruiting additional independent 
nonexecutive directors in particular
 balance of board appointments during the second half of the year 
less than half of the board excluding the chairman was comprised 
of independent nonexecutive directors we are currently exploring 
opportunities to appoint additional independent nonexecutive 
directors to address this
 status of chairman for the first half of the year the position of 
chairman was held by mr regent former president and chief 
executive officer of barrick though not determined to be independent 
on appointment for uk corporate governance purposes mr regent’s 
appointment was deemed to be in the best interests of the company 
given his industry expertise and his familiarity with the company’s 
assets following his departure mr pannell was appointed as acting 
chairman of the company satisfying initial independence 
requirements under the uk corporate governance code 
 appointment of senior independent director mr pannell’s assumption of 
the role of acting chairman required him to step down from the position 
of senior independent director recruitment for an appropriate 
replacement was impacted by the prolonged offer period we are in the 
process of reviewing opportunities to appoint a replacement to this role 
 audit committee composition mr pannell was appointed to the 
committee to replace mr cross in the first half of 2012 following which 
he assumed the position of acting chairman of the board though uk 
corporate governance standards discourage the appointment of the 
chairman as a member of audit committees of ftse 350 companies 
the board felt it appropriate to maintain mr pannell’s audit committee 
appointment in order to safeguard adequate representation and 
participation in audit committee matters throughout the latter half 
of the year 
 nomination committee composition the majority of members of the 
nomination committee may not strictly be viewed as independent 
for uk corporate governance standards in light of mr pannell’s status 
as acting chairman nevertheless the board believed mr pannell’s 
continued committee appointment to be in the best interests of the 
company given the importance of his role in the context of succession 
planning again overall composition of the nomination committee will 
be reviewed as part of wider board and committee composition reviews 
to be conducted in 2013 
in addition to reviewing the specific matters listed above and as previously 
indicated overall composition of the board and its committees will be 
reviewed in 2013 as part of governance reviews to ensure that the 
appropriate balance of responsibilities and skill sets is maintained 
furthermore the board and its committees will review the requirements 
of the new edition of the uk corporate governance code which applies 
to all reporting periods from october 2012 onwards as part of its activities 
for 2013
abg’s external auditor has reviewed those parts of this statement which 
it is required to review under the listing rules of the united kingdom 
listing authority
in addition to compliance with the uk corporate governance code as 
part of commitments given in connection with abg’s secondary listing 
on the dar es salaam stock exchange the board has undertaken to 
comply with the corporate governance guidelines issued by the 
tanzanian capital markets and securities authority to the extent that 
these requirements are equivalent to applicable uk corporate governance 
standards in the case of any conflict between the two the requirements 
of the uk corporate governance code prevail annual report and accounts 2012 67
shareholder information financial statements performance overview governance
audit committee
andre falzon audit committee chair
i am the chair of the committee and have over 25 years of financial 
and management experience within the mining industry i am a cga 
canada and cpa ca canada together this provides me with the 
relevant financial experience required for my position under applicable 
governance standards michael kenyon and derek pannell comprise the 
other committee members james cross stepped down from the 
committee following his resignation from the board under the terms of 
reference we are required to meet at least four times a year the chief 
executive officer chief financial officer the abg group financial 
controller members of the treasury function the head of risk and 
internal audit and the external auditors also attend committee meetings 
on a regular basis we also hold individual meetings with abg’s external 
auditors and the head of risk and internal audit without management 
present to discuss matters within our remit of responsibilities
our committees
key responsibilities
our key responsibilities include oversight of financial reporting and 
internal controls over financial reporting overseeing the group’s 
relationship with its external auditors and abg’ s internal audit function 
overseeing the external and internal audit processes generally and 
reviewing the effectiveness of the abg group’s systems of internal 
control and financial reporting risk management
  further details regarding the committee and its terms of reference 
are available for inspection on abg’s website
activities in 2012 and plans for 2013
w e met five times during the year members’ individual attendance is provided 
on page 62 the committee ’ s key activities focused on the following
 reviewing our terms of reference effectiveness and the skills 
experience and qualification of committee members in the context of 
committee composition reviews
 reviewing the external auditor terms of engagement plans and scope of 
work compensation and the findings arising from all external audit work
 reviewing abg’s periodic financial reporting 
 reviewing key accounting policies and developments in the financial 
reporting and regulatory environment
 reviewing the internal audit plan together with internal audit reports 
findings and monitoring related action plans 
 reviewing succession planning compensation and remuneration for  
all direct reports to the cfo and the head of internal audit
 reviewing enterprise risk registers tax disputes and other litigation
 reviewing whistle blowing arrangements to support reporting 
requirements under abg’s code of conduct and antifraud and 
anticorruption policies 
 identifying and reviewing specific focus areas including nonifrs 
measurements segment accounting and disclosure impairment testing 
and deferred stripping accounting matters 
all of the above areas will be further progressed in 2013 these being  
the priority areas identified within the wider remit of the committee’s 
responsibilities in addition to this we will continue to review the 
requirements of the new editions of the uk corporate governance code 
and the revised frc guidance on audit committees specifically in the 
context of enhanced public reporting requirements for audit committees 
and matters relevant to the appointment and review of external auditors 68 wwwafricanbarrickgoldcom
ehss committee
david hodgson ehss committee chair
i act as chairman of the committee as a result of my years of experience 
within the operating environment of the african mining industry derek 
pannell ambassador mwapachu and kelvin dushnisky comprise the 
other members of the committee stephen galbraith stepped down from 
the committee during the reporting period under the terms of reference 
we are required to meet at least twice a year the chief executive officer 
chief operating officer and members of senior management within our 
security environmental and community relations teams also attend 
committee meetings on a regular basis to discuss matters within our remit 
of responsibilities
key responsibilities
our key responsibilities focus on the oversight and review of abg 
activities that are of core importance to abg’s social licence to operate 
and responsible mining practices these include abg’s strategy and 
policy on environmental occupational health and safety corporate social 
responsibility csr and security matters reviewing the effectiveness of 
group environmental health and safety and security “ehss” systems 
and controls and generally overseeing management’s monitoring and 
evaluation of emerging csr issues to assess the potential impact on abg’s 
business and operations
  further details regarding the committee and its terms of reference 
are available for inspection on abg’s website
corporate governance continued
activities in 2012 and plans for 2013
we met five times during the year members’ individual attendance 
is provided on page 62 the committee’s key activities focused on 
the following
 reviewing our terms of reference effectiveness and the skills 
experience and qualification of committee members in the context 
of committee composition reviews
 reviewing ehss and csr strategy and priorities performance 
metrics trends and incident reports
 reviewing key risks in abg’s operating environment as regards ehss 
and csr
 reviewing abg management systems and processes as regards ehss 
and csr 
 reviewing key regulatory and other developments relevant to the 
ehss and csr operating environment
 identifying and reviewing specific focus areas including abg’s 
permitting management systems environmental management system 
security systems procedures and controls illegal mining strategies 
government and public relations strategies and closure planning
 reviewing and monitoring the status of occupational health and safety 
targets and systems
 further refining the framework for the committee’s review of areas 
of focus 
all of the above areas will be further progressed in 2013 these being 
the priority areas identified within the wider remit of the committee’s 
responsibilities  annual report and accounts 2012 69
shareholder information financial statements performance overview governance
nomination committee transaction committee
derek pannell nomination committee chair
i act as chairman of the committee kelvin dushnisky and ambassador 
mwapachu comprise the other committee members mr dushnisky having 
replaced mr regent following his departure from the board 
michael kenyon t ransaction committee chair
the committee was formed during the latter half of the year to oversee 
matters relating to any potential transaction that could have resulted from 
the discussions between china national gold and barrick i acted as 
chairman of the committee with david hodgson and derek pannell 
comprising the other members of the committee 
activities in 2012 and plans for 2013
we met 13 times during the year members’ individual attendance is 
provided on page 62 our remit of responsibilities and key activities focused 
on the following
 determining the terms of engagement for the professional advisers 
appointed to act for abg in the context of any potential transaction
 taking advice from our professional advisers as regards the duties and 
responsibilities of the company and the board in the context of it being 
a potential target for uk takeover rule purposes 
 overseeing and supporting management in the conduct of due 
diligence exercises and other matters relating to barrick’s discussions 
with china national gold 
 assisting management in the evaluation and referral to the board 
of matters affecting the ordinary course of business as a result of the 
imposition of the offer period 
 providing regular and timely updates to the board on the status of any 
potential transaction developments and requirements imposed during 
the offer period
the committee has now been dissolved following termination of the offer 
period and will be replaced by the newly constituted technical committee
key responsibilities
we play a leading role in reviewing the structure size and composition of 
the board and in reviewing prospective new board appointments we have 
primary responsibility for making recommendations to the board on its 
composition and the composition of board committees generally we also 
manage recommendations for the retirement and replacement of 
directors under the terms of reference we are required to meet at least 
once a year
  further details regarding the committee and its terms of reference 
are available for inspection on abg’s website
activities in 2012 and plans for 2013
w e met once during the year members’ individual attendance is provided on 
page 62 the committee’ s key activities were impacted in the latter half of the 
year as a result of the uncertainty surrounding the requirements for board 
succession and composition planning as a result of the prolonged offer period 
during the year we focused on the following key areas within our remit of 
responsibilities all of which will be further progressed in 2013 
 reviewing the board’s structure size and composition in the context 
of the company’s position and strategy
 developing recommendations for board appointments and the 
reappointment of directors in accordance with the board assessment 
and skills matrix
 identifying candidates for board appointments 
 reviewing the performance of the committee its composition and 
terms of reference
 reviewing key regulatory and other developments relevant to the 
committee’s role and responsibilities
 developing formal succession planning procedures for directors 
and senior management 70 wwwafricanbarrickgoldcom
abg is incorporated and registered as a public limited company 
in england and w ales its headquarters are in london and it is 
listed on the main market of the london stock exchange and 
the dar es salaam stock exchange under the symbol abg
principal activities
abg is tanzania’s largest gold producer and one of the five largest gold 
producers in africa we have four producing mines all located in 
northwest tanzania and several exploration projects at various stages of 
development w e have a high quality asset base solid growth opportunities 
and a clear strategy to optimise expand and grow our business
our four mines are
 bulyanhulu an underground gold mine which began production in 
april 2001
 buzwagi an open pit gold mine which began production in may 2009
 north mara an open pit gold mine consisting of three open pit deposits 
which began production in april 2002 and
 tulawaka an open pit gold mine which has transitioned to an 
underground operation it began production in june 2005 and is 
scheduled to close in 2013 
further details of abg group’s activities are provided in the overview and 
performance sections of this report details of abg’s registered office and 
business locations are provided on the back cover
business review
the requirements of the business review are contained in the overview 
and performance sections of this report
an overview of the principal risks and uncertainties faced by the abg 
group is provided as part of the risk management section of this report
see the corporate responsibility section for information on 
environmental employee social and community matters
all of the matters above are incorporated by reference in this 
directors’ report
directors
the names and biographies of the directors serving as at 31 december 
2012 are provided on pages 56 and 57
an overview of directors’ appointments for the duration of the year under 
review is provided below
date of appointment date of termination
aaron regent 15 february 2010 6 june 2012
greg hawkins 15 february 2010 na
kevin jennings 12 january 2010 na
james cross 15 february 2010 8 march 2012
andre falzon 15 february 2010 na
stephen galbraith 19 january 2010 na
david hodgson 19 october 2011 na
ambassador juma v  mwapachu 14 july 2011 na
michael kenyon 15 february 2010 na
derek pannell 15 february 2010 na
rick mccreary 19 july 2012 na
kelvin dushnisky 6 june 2012 na
save for mr pannell and mr jennings all directors appointed as at year 
end will put themselves forward for reelection at the forthcoming agm 
details of director reelection requirements are provided on page 62
directors’ indemnity insurance
in accordance with abg’s articles of association and to the extent 
permitted by the companies act 2006 abg may indemnify its directors 
out of its own funds to cover liabilities incurred as a result of their office 
the relevant provision contained in the articles can be categorised as a 
“qualifying third party indemnity provision” under the companies act 
2006 abg has adopted directors’ and officers’ liability insurance this 
provides insurance cover for any claim brought against directors or 
officers for wrongful acts in connection with their positions the insurance 
provided does not extend to claims arising from fraud or dishonesty and 
it does not provide cover for civil or criminal fines or penalties imposed 
by law
directors’ interests
details of the interests of directors and their connected persons in abg’s 
shares or in related derivatives or financial instruments are outlined in the 
directors’ remuneration report
employee share schemes
details of abg’s employee share plans and longterm incentive plans are 
contained on pages 80 and 81
employees
information relating to employees is contained on page 115 in note 6 to 
the consolidated financial statements and the corporate responsibility 
section abg abides by antidiscrimination legislation in all jurisdictions 
in which it operates these principles are also set out in abg’s business 
management framework and code of conduct which set out the 
framework in which abg expects all staff to operate this is supported by 
antidiscrimination standards and training in offices and mine sites which 
identify the required standards and provide mechanisms to raise any 
concerns with management
directors’ report annual report and accounts 2012 71
shareholder information financial statements performance overview governance
dividends
an interim dividend of us40 cents per share was paid to shareholders 
on 24 september 2012 the directors recommend the payment of a final 
dividend of us123 cents per ordinary share this represents a total 
dividend of us163 cents for 2012 subject to the shareholders approving 
this recommendation at the agm the final dividend will be paid on 24 
may 2013 to shareholders on the register at 3 may 2013 the exdividend 
date is 1 may 2013 abg will declare the final dividend in us dollars 
unless a shareholder has elected or elects to receive dividends in us 
dollars dividends will be paid in pounds sterling with the us dollar 
amount being converted into pounds sterling at exchange rates prevailing 
on or around 8 may 2013 currency elections must be made by return of 
currency election forms the deadline for the return of currency election 
forms is 7 may 2013
annual general meeting
abg’s agm will be held on 18 april 2013 at 200pm uk time the 
notice of agm and all accompanying details of business to be conducted 
there are included in a separate document accompanying this report they 
are also available on abg’s website wwwafricanbarrickgoldcom
the right of a shareholder to participate in the business of the agm shall 
include without limitation the right to speak vote on a show of hands 
vote on a poll be represented by a proxy and have access to all documents 
which are required by the companies act 2006 or the articles of 
association will be made available to the meeting
share capital
as at 31 december 2012 abg’s issued share capital comprised 
410085499 ordinary shares of 10 pence each the voting rights of all 
abg shares are identical with each share carrying the right to one vote 
abg holds no ordinary shares in treasury and does not have any class of 
share other than its ordinary shares further details on voting rights and 
rights relating to the transfer of shares are provided below
abg’s articles of association provide the authority for abg to purchase its 
own shares including any redeemable preference shares provided that it 
complies with any applicable requirements contained in the companies 
act 2006 the crest regulations or any other applicable law as part of 
resolutions passed at the 2013 agm abg obtained shareholder approval 
to make market purchases of up to 41008550 of its ordinary shares 
equivalent to 10 of the issued share capital at the time of approval the 
authority was granted subject to stated upper and lower limits in accordance 
with listing rule requirements and expires at the forthcoming agm the 
authority was not exercised during the year under review an equivalent 
shareholder resolution will be sought as a matter of ordinary business at 
the forthcoming agm 
details of abg’s issued share capital and any movements during the year 
are included on page 126 in note 23 to the consolidated financial statements
major shareholdings
the following persons as at 1 march 2013 are interested in the following 
percentages of abg’s issued ordinary share capital
name
number of 
shares
percentage of 
issued share 
capital
barrick international barbados corp 179609530 4380
pdg bank limited 37378450 911
pdg sona cayman ltd 86258970 2103
t otal 303246950 7394
all of these shareholders are members of the barrick group
relationship with major shareholder
an overview of abg’s relationship with barrick and the relationship 
agreement that has been executed in respect of their ongoing relationship 
is provided on page 63
political and charitable donations
abg does not make political donations information as regards abg’s 
social and community contributions for the year is provided on pages 44 
and 45 and as part of our financal review
creditor payment policy
it is abg policy to settle all debts with creditors on a timely basis and 
in accordance with terms and conditions agreed in advance with each 
creditor further details on trade creditors are provided on page 128 
in note 25 to the consolidated financial statements
suppliers
it is abg’s policy that subject to compliance with trading terms by the 
supplier payments are made in accordance with terms and conditions 
agreed in advance with the supplier
as at 31 december 2012 the abg group had an average of 59 creditor 
days compared to 58 in 2011
policy on derivatives financial instruments and financial  
risk management
abg’s policies on financial risk management derivatives financial 
instruments and information on its exposures to foreign currency 
commodity prices credit equity liquidity and interest rates can be found 
in notes 2 25 and 29 to the consolidated financial statements contained 
on pages 98 to 138 of this report 72 wwwafricanbarrickgoldcom
material agreements containing change of control provisions
the directors consider the following as material agreements and 
arrangements for abg’s business and operations which contain provisions 
which alter or terminate on a change of control of abg
 services agreement as part of its ipo preparations abg entered into 
a services agreement with barrick under which barrick provides certain 
services to abg and the other members of the abg group for the 
ongoing operation of the business these services include support for 
information technology technical services security and other 
administrative and corporate functions the services agreement 
provides that the services were to be provided to the abg group for an 
initial period of 12 months and will continue in force unless terminated 
the agreement’s termination events include a basis for either party to 
terminate the agreement with immediate effect in the event of specified 
breaches of the agreement insolvency or analogous events or a change 
of control
 relationship agreement see page 63 of this report for an overview of 
the relationship agreement
 credit agreement an overview of the credit agreement between among 
others abg and citibank international plc as administrative agent is 
provided on page 130 note 28 to the consolidated financial statements 
a change of control of abg is a mandatory prepayment event under the 
credit agreement and subject to certain exceptions a termination event
abg’s mining concessions are held by its operating companies in 
tanzania under applicable law a change of control of the operating 
companies requires the consent of the minister of energy and minerals 
in tanzania
an overview of the provisions contained in executive director service 
agreements as regards change of control is provided with the directors’ 
remuneration report special provisions also allow the early exercise of 
awards made under abg’s stock option plan and early vesting of awards 
made under abg’s longterm incentive plan ‘ltip’ in the event of 
a takeover reconstruction or winding up in such circumstances the 
compensation committee determines whether and to what extent options 
or awards become exercisable by taking into account all relevant facts and 
circumstances including but not limited to satisfaction of any applicable 
performance condition
when determining the vesting of ltip awards or options the 
compensation committee may proportionately reduce the award 
depending on the time which has elapsed between the first day of the 
performance period and the date of change of control alternatively 
awards may be exchanged for new equivalent awards where appropriate
significant relationships
abg’s relationship with barrick as its majority shareholder is summarised 
on page 63 of this report in addition to this relationship the directors 
consider the following contractual relationships and arrangements as 
essential for the conduct of abg’s business
 tulawaka agreement although the tulawaka mine is 100 owned and 
operated by pangea minerals limited the economic interest in the mine 
is divided on a 7030 basis following a 1998 contractual joint venture 
agreement between pangea goldfields inc an abg group company 
pgi and mdn inc mdn the tulawaka agreement provides that 
all capital and operating costs associated with the tulawaka mine are 
funded by pgi and mdn on a 7030 basis and that pgi is contractually 
obligated to pay mdn an amount equal to 30 of the net cash 
generated by the tulawaka mine less any applicable withholding
 mineral development agreements each abg group operating mine 
has a mineral development agreement mda with the tanzanian 
government the material terms and conditions of each mda 
are substantially similar and include provisions governing royalty 
payments taxes and other charges banking arrangements local 
procurement obligations and import rights the mdas also provide 
for no expropriation or nationalisation rights broadly these rights 
provide that the tanzanian government will not nationalise or 
compulsorily acquire the whole or any part of abg’s interest in 
the applicable special mining licences or any of its property or its 
contractors’ or subcontractors’ property used for the purpose of 
mining operations or in relation to the applicable special mining 
licences without adequate compensation each mda is governed by 
tanzanian law adherence to the terms and conditions of the mdas 
is of significant importance to abg’s business given the agreements’ 
overall importance to our operations
 tanesco relationship the north mara buzwagi and bulyanhulu 
mines rely upon electrical power generated by the state power utility 
company tanesco abg has entered into a number of agreements 
and arrangements with tanesco in respect of power supply and 
purchase prices these agreements are reviewed on a regular basis 
as national electricity generation and transmission systems in 
tanzania are limited abg’s ongoing relationship with tanesco 
is of significant importance to its operations and business any 
adverse change or development in this relationship could produce 
a material adverse effect on abg’s operations performance and 
financial condition
all other material contracts and arrangements are summarised above 
under “material agreements containing change of control provisions” 
going concern
the directors’ statement on going concern is contained on page 41 
of this report
corporate governance compliance
the statement on compliance with the uk corporate governance code 
for the reporting period is contained on page 66 of this report 
articles of association
the company’s articles of association may be amended by special 
resolution of the shareholders
shareholder rights
the rights and obligations attaching to the ordinary shares contained 
in abg’s articles of association are as follows
v oting rights
subject to any special rights or voting restrictions contained in the articles 
of association for any class of share at any general meeting every member 
who is present in person or by proxy shall on a show of hands have one 
vote and every member present in person or by proxy shall on a poll have 
one vote for each share of which he or she is the holder
directors’ report continued annual report and accounts 2012 73
shareholder information financial statements performance overview governance
a resolution put to a vote of the meeting shall be decided on a show of 
hands unless a poll is duly demanded subject to the provisions of the 
companies act 2006 a poll may be demanded by the chairman by at 
least five members who have the right to vote at the meeting by a member 
or members representing not less than onetenth of the total voting rights 
of all the members having the right to vote at the meeting or by a member 
or members holding shares conferring a right to vote at the meeting being 
shares on which an aggregate sum has been paid up equal to not less than 
onetenth of the total sum paid up on all the shares conferring that right
unless the directors otherwise determine a shareholder is not entitled to 
vote at a shareholders’ meeting either in person or by proxy or to exercise 
any other right conferred by membership in relation to a shareholders’ 
meeting unless and until all calls or other sums presently payable by him 
in respect of that share with interest and expenses if any have been paid 
to abg or if he or any other person appearing to be interested in shares 
has been issued with a notice pursuant to section 793 of the companies 
act 2006 requiring disclosure of interest in shares and has failed to 
provide the required information within 14 days from the service of 
the notice
dividend rights
the board may declare and pay dividends on any class of shares carrying 
a fixed dividend expressed to be payable on fixed dates and may from time 
to time pay interim dividends as it thinks fit final dividends shall be 
declared by ordinary shareholder resolution in accordance with board 
recommendations no dividend declared by shareholders shall exceed the 
amount recommended by the board
provided that the board acts in good faith it shall not incur any liability to 
shareholders for any loss that they may suffer by the lawful payment of any 
fixed or interim dividend on any shares ranking after or pari passu with 
those shares
except as otherwise provided by the rights attached to shares all dividends 
shall be apportioned and paid proportionately to the amounts paid up on 
the shares during any portion or portions of the period in respect of which 
the dividend is paid but if any share is issued on terms providing that it 
shall rank for dividend as from a particular date it shall rank for dividend 
accordingly no amount paid up on a share in advance of the date on which 
a call is payable shall be treated as paid up on the share
payment of any dividend declared may be satisfied wholly or partly by 
the distribution of specific assets and in particular of paid up shares or 
debentures of abg with shareholder approval
the directors may retain any dividend or other money payable on or 
in respect of a share on which abg has a lien and may apply the same 
towards satisfaction of the monies payable to abg in respect of that share
unless the directors otherwise determine the payment of any dividend or 
other money that would otherwise be payable in respect of shares will be 
withheld and abg shall have no obligation to pay interest on it if such 
shares represent at least 025 of the nominal value of the issued share 
capital of their class and the holder or any other person appearing to be 
interested in those shares has been issued with a section 793 notice and 
has failed to supply the information required by such notice within 14 
days furthermore such a holder shall not be entitled to elect to receive 
shares instead of a dividend
the payment by the board of any unclaimed dividend or other monies on 
or in respect of a share into a separate account shall not constitute abg a 
trustee in respect thereof all dividends unclaimed for a period of 12 years 
after having been declared or become due for payment shall be forfeited 
and shall revert to abg
t ransfer of shares
subject to any applicable restrictions each member may transfer all or 
any of his or her shares which are in certificated form by instrument of 
transfer in writing in any usual form or in any other form acceptable to the 
board and may be under hand only such instrument shall be executed by 
or on behalf of the transferor and in the case of a transfer of a share which 
is not fully paid up by or on behalf of the transferee the transferor shall 
be deemed to remain the holder of such share until the name of the 
transferee is entered in the register in respect of it
all transfers of shares which are in uncertificated form shall unless the 
crest regulations otherwise provide be effected on a relevant system
the directors may in their absolute discretion and without giving any 
reason refuse to register any transfer of a share in certificated form or 
renunciation of a renounceable letter of allotment unless
i it is in respect of a share which is fully paid up
ii it is in respect of only one class of shares
iii it is in favour of not more than four joint transferees
iv it is lodged duly stamped if so required at the transfer office
v it is accompanied by the relevant certificate for the shares to which 
it relates and such other evidence as the directors may reasonably 
require to prove the title of the transferor and the due execution of 
the transfer or if the transfer is executed by some other person on his 
behalf the authority of that person to do so and
vi in the case of partly paid shares listed on the london stock exchange 
such refusal would prevent dealings in such shares from taking place 
on an open and proper basis
unless the board otherwise determines a transfer of shares will not be 
registered if the transferor or any other person appearing to be interested 
in the transferor’s shares has been issued with section 793 shares in 
respect of shares representing at least 025 of their class and the relevant 
information has not been supplied within 14 days this restriction on 
transfer will not automatically apply if the member is not personally in 
default as regards supplying the information required and the proposed 
transfer is only part of the member’s holding provided that certain 
requirements are satisfied at the time of presenting the transfer 
for registration
division of abg assets on a winding up
if abg is wound up the liquidator may with the sanction of a shareholder 
special resolution divide the whole or any part of abg’s assets between 
shareholders in such circumstances the liquidator may value any assets 
and determine how the division shall be carried out as between the 
shareholders or different classes of shareholder subject to certain 
requirements the liquidator may also vest any part of the assets in trustees 
on such trusts for the benefit of the shareholders but no shareholder shall 
be compelled to accept any assets on which there is a liability 74 wwwafricanbarrickgoldcom
v ariation of rights
if at any time the share capital of abg is divided into shares of different 
classes rights attached to a class may only be varied in such manner if 
any as may be provided by prescribed rights or in the absence of any such 
provision either with the consent in writing of the holders of not less than 
threequarters in nominal value of the issued shares of the class or with the 
sanction of a special resolution passed at a separate general meeting of the 
holders of shares of the class duly convened and held
powers of directors
managing the business
abg’s business is managed by the board and the articles of association 
permit the board to exercise all of abg’s powers in this regard these 
powers may be exercised by any meeting of the board at which a quorum 
of two directors is present the power of the board to manage the business 
is subject to any limitations imposed by the companies act the articles of 
association or any directions given by special resolution of the 
shareholders applicable at a relevant time
the articles contain an express authority for the appointment of executive 
directors and provide the directors with the authority to delegate or 
confer upon such directors any of the powers exercisable by them upon 
such terms and conditions and with such restrictions as they see fit the 
articles contain additional authorities to delegate powers and discretions 
to committees and subcommittees
borrowing powers
subject to the provisions of the companies act 2006 the crest 
regulations and any other applicable law the directors may exercise all 
the powers of abg to borrow money guarantee indemnify mortgage or 
charge its undertaking property present and future and uncalled capital 
or any part or parts thereof and issue debentures and other securities 
whether outright or as collateral security for any debt liability or obligation 
of abg or of any third party up to a maximum amount of two times the 
aggregate of the abg group’s adjusted total equity calculated in 
accordance with the procedure contained in the articles of association 
borrowings in excess of this amount require prior shareholder approval
new issues of shares
subject to the provisions of the companies act 2006 the crest 
regulations and every other enactment for the time being in force relating 
to the directors’ authority to allot shares andor the disapplication of 
preemption rights and to any resolution of the company in general 
meeting regarding the same the directors may allot with or without 
conferring a right of renunciation grant options over or otherwise 
dispose of them to such persons at such times and on such terms as they 
think proper
abg’s shareholders passed the following resolutions relating to the 
allotment and preemption right disapplications at the 2012 agm
i the directors have been granted an authority to allot new shares and 
to grant rights to subscribe for or convert any security into shares up 
to a nominal value of £13532821 which was equivalent to 
approximately 33 of the total issued ordinary share capital of abg 
at the time of passing the resolution exclusive of treasury shares
ii preemption rights were disapplied over new shares allotted for 
cash pursuant to the authority granted at i above but only a in 
connection with a preemptive offer or rights issue or b otherwise 
up to a nominal value of £2050427 equivalent to approximately 
5 of the total issued ordinary share capital of abg at the time of 
passing the resolution
these authorities have not been exercised during the reporting period and 
will expire on the date of the forthcoming agm equivalent resolutions 
for a renewal of these authorities will be put to the shareholders at the 
forthcoming agm
appointment and replacement of directors
shareholders may appoint any person who is willing to act as a director by 
ordinary resolution and may remove any director by ordinary resolution 
the board may appoint any person to fill any vacancy or as an additional 
director provided that they are submitted for reelection by the 
shareholders at the agm following their appointment
specific conditions apply to the vacation of office including cases where 
a director becomes prohibited by law or regulation from holding office 
or is persistently absent from directors’ meetings or if threequarters of 
appointed directors request his or her resignation or in the case of mental 
incapacity or bankruptcy
barrick’s rights to appoint directors are summarised on page 65
related party transactions
details of related party transactions undertaken during the year are 
contained in note 32 on page 136 of the consolidated financial statements
post balance sheet events
particulars of any important events affecting the company or the abg 
group since the yearend are contained in note 34 on page 138 of the 
consolidated financial statements
audit information
having made the requisite enquiries so far as the directors are aware 
there is no relevant audit information as defined by section 4183 of the 
companies act 2006 of which the auditors are unaware and each director 
has taken all steps that he or she ought to have taken as a director to make 
himself aware of any relevant audit information and to establish that the 
auditors are aware of that information
auditors
abg’s auditors are pricewaterhousecoopers llp pwc a resolution to 
reappoint pwc as auditors will be proposed at the forthcoming agm 
refer to page 93 as part of the consolidated financial statements for the 
independent auditors’ report
directors’ report continued annual report and accounts 2012 75
shareholder information financial statements performance overview governance
under applicable uk law the directors are responsible for preparing the 
annual report the directors’ report the remuneration report and the 
financial statements in accordance with applicable law and regulation
responsibility for financial statements
the companies act 2006 requires the directors to prepare financial 
statements for each financial year under that law the directors have 
prepared the group and parent company financial statements in 
accordance with international financial reporting standards ifrs as 
adopted by the european union 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 abg group and 
the company and of the profit or loss of the abg group for that period 
in preparing these financial statements the directors are required to
 select suitable accounting policies and then apply them consistently
 make judgements and accounting estimates that are reasonable 
and prudent
 state whether applicable ifrs as adopted by the european union have 
been followed subject to any material departures disclosed and 
explained in the financial statements and
 prepare the financial statements on the going concern basis unless it is 
inappropriate to presume that the company will continue in business
the directors are responsible for keeping adequate accounting records 
that are sufficient to show and explain the company’s transactions and 
disclose with reasonable accuracy at any time the financial position of 
the company and the abg group and enable them to ensure that the 
financial statements and the directors’ remuneration report comply 
with the companies act 2006 and as regards the abg group’s financial 
statements article 4 of the ias regulation they are also responsible for 
safeguarding the assets of the company and the abg 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 
company’s website and legislation in the united kingdom governing the 
preparation and dissemination of financial statements may differ from 
legislation in other jurisdictions
responsibility statement required by disclosure and t ransparency rules
the directors confirm to the best of their knowledge that
 the financial statements prepared in accordance with applicable 
accounting standards give a true and fair view of the assets liabilities 
financial position and profit or loss of abg and the undertakings 
included in the consolidation as a whole and
 the management report which is incorporated into the directors’ 
report includes a fair review of the development or performance of the 
business and the position of abg and the undertakings included in the 
consolidation as a whole together with a description of the principal 
risks and uncertainties that they face
approval of directors’ report
this report has been approved by the board and signed on its behalf by
katrina white 
company secretary
directors’ responsibilities statement 76 wwwafricanbarrickgoldcom
remuneration report
continued development of  
our compensation practices 
dear shareholders
overall 2012 has been an unusual year for abg notably as a result of 
a number of key developments in our operating environment and the 
impact of discussions between china national gold and barrick both of 
which required a refocusing of committee activities in particular much 
of the committee’s work in the latter half of 2012 focused on ensuring we 
had appropriate retention and compensation arrangements in place in 
order to maintain workforce levels to provide for business continuation 
during a prolonged period of uncertainty as we emerge from this the 
committee will resume its focus on developing our compensation practices 
in line with our strategic business objectives in order to support longterm 
growth and returns 
generally compensation practices throughout the global mining sector 
have remained highly competitive throughout the year it is important that 
we ensure our approach to compensation and incentives remains broadly 
competitive within this sector in order to attract and retain the talent 
required to drive our business in conjunction with this we are mindful of 
the evolving trends and practices applicable to compensation generally 
in 2012 the committee decided to replace awards under the company’s 
share option plan with awards of commensurate fair value under the 
longterm incentive plan “ltip” ltip awards will continue to be 
subject to the total shareholder return “tsr” performance condition 
established for this plan in addition the committee has approved the 
introduction of executive director shareholding guidelines pursuant 
to which executive directors will be required to establish a minimum 
shareholding in the company equal to two times base salary over a period 
of 5 years the committee will continue to review developments in 
remuneration in order to ensure appropriate alignment between the 
interests of executives and shareholders in the context of compensation 
and performance 
more generally ongoing regulatory developments in the context of 
executive compensation and content requirements for the directors’ 
remuneration report have remained a key focus for the committee in 
2012 we continue to monitor the proposals and await the ultimate 
outcome of requirements under the enterprise and regulatory reform 
bill and the effects that this will have on future reporting periods and 
the formulation of the company’s remuneration policy going forward
“maintaining compensation arrangements 
to support business continuity and retention 
of talent ” 
michael kenyon 
chairman of the compensation committee
7 march 2013  annual report and accounts 2012 77
shareholder information financial statements performance overview governance
summary of executive director remuneration policy and structure
component objective details
base salary to provide appropriately competitive level of 
base salary with due regard to the size and nature 
of the responsibilities of each role as well as an 
individual executive’s experience
any adjustments effective 1 january
benchmarked against international gold mining general mining 
and ftselisted companies of similar size and complexity
the committee also takes into account corporate and individual 
performance and experience general market conditions and salary 
increases applied within the company as a whole
shortterm incentive to align annual reward with annual performance 
ie reinforce the delivery of key shortterm 
operational objectives
annual opportunity of up to 150 of salary with 75 of salary 
payable for target performance
based on performance against a balanced scorecard of group targets 
and individual objectives together with the committee’s view of the 
overall performance of the business
longterm incentive to provide strong alignment with shareholders’ 
longterm interests ie reward good longterm 
decisions that help deliver outperformance 
absolute share price growth and support the 
retention of critical executives
a longterm incentive plan “ltip”
annual award of restricted stock units “rsus” up to 200 of salary
rsus vest based on abg’s threeyear tsr outperformance of 
international gold mining sector peers 
b share option plan “sop”
annual award of options up to 200 of salary
options vest annually over four years in equal tranches based on 
continued employment
pension to help provide for an appropriate 
retirement benefit
executive directors receive contributions of 25 of base salary into 
a personal pension scheme of the executive director’s choice or a 
cash supplement of commensurate value
audit notes
in accordance with section 421 of the companies act 2006 and schedule 
8 of the large and medium sized companies and groups accounts and 
reports regulations 2008 the “regulations” the following sections 
of the annual report have been audited directors’ remuneration 
directors’ interests in shares under the abg longterm incentive plan 
directors’ interests in options under the abg share option plan 
nonexecutive directors’ interests in units under the abg deferred 
share unit plan the remaining sections are not subject to audit
compensation committee
the committee’s principal responsibilities are
 setting reviewing and recommending to the board for approval 
the company’s overall remuneration policy and strategy
 setting reviewing and approving individual remuneration 
arrangements for the chief executive officer and chief 
financial officer
 setting reviewing and approving individual remuneration 
arrangements for the senior management team after considering 
the recommendations of the chief executive officer
 approving the rules and launch of any company share share option 
or cashbased incentive scheme and the grant award allocation or issue 
of shares share options or payments under any such scheme
 setting reviewing and approving the corporate and individual 
performance goals for the chief executive officer and chief 
financial officer
 setting reviewing and approving the corporate and individual 
performance goals for the senior management team based on the 
chief executive officer’s recommendations
 assessing the achievement of corporate and individual performance 
goals of the chief executive officer chief financial officer and 
senior managers
 ensuring that all provisions regarding disclosure of remuneration 
including pensions as set out in the uk corporate governance code 
and the listing rules and as required in connection with the preparation 
of the directors’ remuneration report are fulfilled and
 establishing selection criteria for the selection appointment and the 
terms of reference for any remuneration consultants who advise the 
committee and obtaining reliable uptodate information about 
remuneration in other peer group and ftse companies 78 wwwafricanbarrickgoldcom
remuneration report continued
the full terms of reference of the compensation committee can be 
found on the abg website and copies are available on request as of 
31 december 2012 the committee comprised the following
 michael kenyon chairman
 andre falzon
 david hodgson
 kelvin dushnisky
mr dushnisky was appointed midyear following mr regent’s departure 
from the committee and mr hodgson was appointed to the committee 
to fill independent nonexecutive director vacancies the following 
individuals attended meetings by invitation during the year and provided 
advice to the committee to enable it to make informed decisions
 greg hawkins chief executive officer
 peter geleta vice president organisational effectiveness and
 kobus van vuuren head of human resources
no director is present when his or her own remuneration is 
being determined
the committee also meets without management and receives information 
and advice from kepler associates an independent executive remuneration 
consultancy firm during 2012 kepler associates provided advice to the 
committee on its review of market trends remuneration benchmarking 
and remuneration issues in general kepler associates does not advise 
the company on any other issues kepler associates is a member of the 
remuneration consultants group and adheres to its code of conduct 
the committee also received legal advice from shearman  sterling llp 
during the year on specific matters relating to restrictions placed on the 
use of the company’s longterm incentive schemes during the offer period 
and the adoption of the executive director retention arrangements during 
the offer period
remuneration policy
the company’s remuneration policy is designed with the following 
objectives in mind
 to align the interests of executive directors with the short and 
longterm interests of shareholders
 to link executive remuneration to the performance of the company 
and the individual
 to leverage performance through emphasis on variable remuneration 
to reinforce key business imperatives and strategy
 to reinforce the key elements of the company’s strategy and align the 
senior leadership team with the strategy and
 to remunerate the chief executive officer chief financial officer and 
senior leadership team at a level and in a manner that ensures that 
abg is capable of attracting motivating and retaining talent
in defining the company’s remuneration policy the compensation 
committee takes into account advice received from external consultants 
and also best practice guidelines set by institutional shareholder bodies 
including the principles and guidelines on executive remuneration issued 
by the association of british insurers abi and the provisions of the uk 
corporate governance code in 2013 the committee will continue its 
review of remuneration disclosure against the requirements of the 
enterprise and regulatory reform bill and the company’s remuneration 
policy which based on the current proposals will be subject to a binding 
shareholder vote at the 2014 agm
to implement the policy abg has the option of using three performance
related incentive schemes for the senior leadership team
 the shortterm incentive – is designed to focus executives on the 
business priorities of the financial year and to reinforce the individual 
and company performance ethic
 the longterm incentive plan – aims to motivate participants to 
maximise total shareholder return as measured against a comparator 
group of international gold mining companies over a period of three 
years and
 the stock option plan – aims to drive shareholder value over the long 
term and encourage retention
the committee considers that the threeyear vesting period for the ltip is 
appropriate as a measure of longterm performance in addition historically 
the phased vesting period over four years for the sop was viewed as 
appropriate to encourage retention in this regard it should be noted that 
the committee has decided not to grant any awards under the sop for 
2012 or any future periods 
activities in 2012
the compensation committee met six times during the year details of 
members’ attendance at meetings are provided on page 62 as noted 
above the focus of the committee activities in 2012 was impacted by the 
prolonged offer period imposed on the company as a result of discussions 
between china national gold and barrick which required consideration 
of appropriate employee and management retention plans during a period 
of ongoing uncertainty as a result principal committee activities focused 
on the following 
 reviewing and adopting appropriate retention packages for company 
employees and management
 reviewing the company’s redundancy policies
 review and approval of 2012 individual performance and pay 
recommendations for the chief executive officer chief financial 
officer and other members of the senior leadership team and
 approval of 2013 salary increases for the chief executive officer chief 
financial officer senior leadership team and other senior functions 
ongoing reviews of compensation arrangements and market positioning 
of pay for the chief executive officer chief financial officer and senior 
leadership team will continue into 2013 in conjunction with the 
outcomes and considerations relevant to the operational review  annual report and accounts 2012 79
shareholder information financial statements performance overview governance
components of remuneration
the current remuneration package for executive directors comprises 
performancerelated and nonperformancerelated components the 
performancerelated components are the incentive schemes referred to 
above and the nonperformancerelated components are base salary 
taxable benefits and pension entitlements pay and employment conditions 
elsewhere in the group have been taken into account by the committee 
in determining the remuneration packages for executive directors this 
includes the committee regularly reviewing information provided by the 
human resources function
the proportion of each executive director’s total remuneration that is 
performancerelated is significant even for target performance for stretch 
performance the proportion of total remuneration that is performance
related is higher as is the total amount of remuneration payable
the average proportion of remuneration including pension that was 
performancerelated in 2012 is illustrated by the following chart in 
estimating the relative importance of those elements of remuneration that 
are and those that are not performancerelated a number of assumptions 
have had to be made about the company’s share price growth and tsr 
relative to the company’s comparator group over the next three years 
composition of remuneration package for executive directors
as a  of total remuneration at target
and stretch performance
cfo ceo
 
fixed base salary benefits and pension  
variable cash and sharebased incentives
stretch stretch
target target
base salaries
executive directors’ salaries are reviewed each year with any changes 
normally taking effect from 1 january this review takes into account 
individual performance and market competitiveness pensionable salary 
is derived from base salary only
in line with our remuneration policy the committee benchmarks 
executive directors’ salaries against comparator groups which for the 
2012 salary review were international gold mining general mining and 
ftselisted companies of similar size and complexity in 2012 the 
committee noted the chief executive officer’s salary was between lower 
quartile and median and the chief financial officer’s salary was between 
median and upper quartile
the committee approved the following 2013 salary increases for 
executive directors
2011 salary 2012 salary 2013 salary
increase on 
2012 salary
chief executive officer £450000 £475000 £490000 316
chief financial officer £327000 £359700 £370500 3
the salary increases for 2013 are between lower quartile and median for 
the company’s comparator groups the average salary increase across the 
rest of the group was 65
shortt erm incentive sti
the group operates a cashbased sti which in 2012 provided for an 
annual bonus opportunity in the range of 0 to 150 of base salary for 
executive directors for 2013 the committee has approved the following 
sti opportunities for the executive directors this being equal to that 
for 2012
2013 target bonus 
opportunity
2013 maximum 
bonus opportunity
chief executive officer 75 150
chief financial officer 75 150
awards under the sti are earned based on group and individual 
performance for the executive directors the group performance 
measures for the 2012 incentive year were based on five categories 
financial operations growth and csr capturing safety environment 
security government relations and community relations and personnel 
for each of the categories the committee sets stretching targets for specific 
performance measures the review of individual performance takes into 
consideration achievements against the individual’s personal performance 
in 2012 the group scorecard assessment reflected a mixed year targets 
for production cost cash flow and earnings performance were not met 
however growth was strong across exploration notably with our entry 
into kenya and we continued to make good progress with capital projects 
in the csr areas although we continued to make good progress in key 
areas namely in the context of community relations environmental 
security and government relations overall safety performance was marked 
with two fatalities for the 2012 incentive year taking into account overall 
business and individual performance the committee has awarded the 
chief executive officer an sti payment of approximately 64 of base 
salary and the chief financial officer an sti payment of approximately 
71 of base salary these payments reflect not only the fair analysis of 
achievements when considering group performance measures but also 
the additional requirements placed on management as a result of the 
prolonged offer period applicable to the company in the second half of 
2012 entitlement to the sti may be forfeit if the individual is on notice 
at the time of payment 
the committee will continue to monitor trends and developments in 
corporate governance and market practice to ensure the bonus structure 
remains appropriate 80 wwwafricanbarrickgoldcom
remuneration report continued
longterm incentives
the company operates two share schemes in which the executive 
directors other members of senior management and high potential 
individuals within the organisation are eligible to participate the ltip and 
the sop  the committee recognises that some of the features of the ltip 
and sop  which are based on the same structure of longterm incentive 
awards granted by barrick are not fully consistent with general uk market 
practice therefore we adopted the following key amendments to the ltip 
in 2012 in order to reach an appropriate compromise between uk market 
requirements for such awards and the need to ensure the competitiveness 
of the abg ltip relative to the incentives offered by many of our global 
sector peers
 mechanics for the clawback of ltip awards or their proceeds made 
to executive directors in the exceptional circumstances of individual 
misconduct or financial misstatementmisreporting and
 mechanics that allow the committee to grant awards to participants who 
are not executive directors either a without a performance condition 
or b subject to a performance condition which is measured over a 
performance period of less than three years
the rules of the ltip and sop each permit a maximum award with a 
value equal to 200 of salary in each year under normal circumstances 
the committee may exceed this limit in exceptional circumstances the 
committee generally intends for awards to be delivered on a “fair value” 
basis as a result of regulatory restrictions applicable to the company as 
a result of the offer period no awards were made under the sop or ltip 
in 2012 following year end and subsequent to the lifting of offer period 
related restrictions the committee granted ltip awards in respect of 2012 
equivalent to c150 of base salary for the chief executive officer and the 
chief financial officer respectively the committee made these awards 
on the basis that both the ltip should be looked at in overall terms of  
i incentivisation and ii retention no awards have been made in respect 
of 2012 under the sop  
longt erm incentive plan ltip
under the ltip  awards of conditional shares options or restricted stock 
units rsus may be granted to date only rsus have been granted under 
the ltip 
the executive directors and the other members of our senior leadership 
team are eligible to receive annual awards under the ltip  awards vest on 
the company’s tsr performance share price and dividends against the 
market capweighted average tsr of a comparator group of companies 
over a threeyear performance period commencing on the date of grant 
there is no retest provision the committee considers that tsr is an 
appropriate performance measure for the ltip because it captures the 
shareholder return delivered over the long term objectively and is less 
sensitive to shortterm changes in the gold price than many alternative 
measures commonly used
achievement
category overall weight measure
below  
threshold
between threshold 
and target at target
between target  
and stretch
at or  
above stretch
financial 20 earnings 

Summary:
 8 wwwafricanbarrickgoldcom
chief executive officer’s statement
focused on improving returns
“cash flow generation and improving returns 
from our assets form a key part of our 
operational review and we will update on our 
progress throughout the course of 2013 we 
have maintained the 2012 dividend at the 2011 
level reflecting our confidence in the business 
and our commitment to shareholder returns ”
capital allocation
usm
0
100
200
300
400
fy2010 fy2011 fy2012
dividend payments acquistion spend exploration spend
0
overall for abg 2012 was a year where we realised good progress in 
several areas but where we did not meet our core production and cost 
targets w e continued to invest in the ongoing stability of the business and 
our licence to operate this was rewarded with increasing consistency 
in the operational performance at buzwagi as the year progressed and 
improvements in the grade profile at north mara where we also received 
confirmation of the renewal of our mining licences and signed the village 
benefit implementation agreements overall our mining rates for the 
year increased we processed 4 more tonnes through our plants and 
we improved the recovery profile of our operations despite the expected 
decrease in grade we also significantly enhanced our early stage 
exploration portfolio with the acquisition of aviva mining kenya 
limited “ amkl ”
our group production for the year was 9 lower than 2011 with the 
grade driven increase at north mara offset by declines of similar levels 
at our other three operations bulyanhulu was impacted by paste fill and 
equipment availability issues together with the loss of skilled employees 
due to proposed government pension law changes buzwagi saw an 
expected reduction in grade to around its reserve grade although it did 
benefit from improved plant performance later in the year and tulawaka 
operated under batch processing following the exhaustion of surface 
stockpiles these lower production levels together with higher energy and 
maintenance expenses resulted in our cash costs for the year reaching 
us949 per ounce sold as we move into 2013 we start from a strong 
platform with a net cash position of us401 million but we nonetheless 
need to strengthen our focus on reducing costs in order to ensure the 
business can deliver attractive levels of free cash flow generation this will 
form a key part of our ongoing operational review 
greg hawkins
chief executive officer annual report and accounts 2012 9
shareholder information financial statements overview performance governance
beyond the day to day operational challenges of our business for a large 
part of the second half of the year we also dealt with several additional 
factors resulting from the discussions between barrick and china national 
gold with respect to barrick’s majority stake in abg these included a 
detailed due diligence process and site visits as well as other factors such 
as dealing with the uncertainty caused among our employees and also the 
communities in which we operate we implemented a range of measures 
to deal with these additional challenges and were largely successful in 
limiting the disruption to our business with the discussions now 
terminated we need to ensure everyone in the business remains focused 
on delivering the significant potential of our asset base
our share price performance in 2012 was set against a backdrop of 
continuing underperformance by gold equities relative to the underlying 
commodity the key focus from investors has centred on the lack of free 
cash flow leverage in the industry to the gold price either through rising 
operational costs or increasing investment in new projects which do 
not meet hurdle return rates in the three years since abg listed as an 
independent company we have been successful in generating substantial 
free cash flow and have maintained the view that capital returns to 
shareholders are of critical importance with the proposed final dividend 
for 2012 we will have returned in excess of us150 million to shareholders 
over that period and have also invested in two early stage projects which 
we believe have the potential to deliver significant longterm value to the 
business nonetheless during 2012 the increases in our operating expenses 
and in the level of capital we invested in our assets meant that the business 
consumed capital which is not sustainable over the longer term as such 
the board of abg has asked management to conduct a full operational 
review of the business with the aim of recalibrating our operations so as to 
drive improved returns from the asset base whilst enhancing the certainty 
of delivery the review commenced in january 2013
more recently kevin jennings our chief financial officer has given 
notice that he intends to leave abg in order to take up a similar role at 
another mining company whilst we are naturally disappointed to see 
kevin leave us we understand his wish to pursue this new opportunity 
and wish him the very best for his new venture
operating performance
at an individual mine level bulyanhulu remained our largest producing 
asset and is set to remain so with the existing mine plan and the growth 
projects being advanced in 2012 production was 10 lower than in 2011 
as we experienced power supply issues earlier in the year which impacted 
on hoisting capacity while later in the year the delivery of ore to surface 
was reduced by a lack of paste fill availability which led to increased reliance 
on lower grade stopes and a shortage of skilled personnel resulting from 
resignations in the face of proposed changes to pension fund legislation in 
tanzania we have several initiatives in place to deal with these shortterm 
factors in order for bulyanhulu to get back to its expected run rate as 
2013 progresses
at north mara it was pleasing to see the expected increase in production 
levels on the prior year as we accessed the higher grade zones in the 
gokona pit in the second half of the year this reduced the reliance on 
lower grade stockpiles to provide feed to the mill and led to increased head 
grade and a 13 increase in production compared to 2011 operations 
saw some impact from an increase in illegal mining activity during the 
second half of the year but this has now subsided and returned to more 
normalised levels production during 2012 was from the gokona and 
nyabigena pits with operations at the nyabirama pit subject to the 
necessary land acquisitions and relocations which are a key focus for mine 
management in 2013
at buzwagi significant progress was made across both mining and 
processing activities during the year production was 16 below the level 
of 2011 a result of the expected 30 decline in grade as the mine operated 
at close to its reserve grade this impact was slightly offset by operational 
improvements with a 33 increase in total tonnes mined which includes 
a 19 increase in ore tonnes and a throughput increase of 24 site 
management are now firmly focused on ensuring these improvements 
are maintained during 2013
at tulawaka the processing plant operated on batch milling due to the 
lack of sufficient ore to run it full time which was a consequence of relying 
on underground material during 2012 as a result throughput was down 
substantially on 2011 with a corresponding fall in production levels we 
have successfully extended the life of this operation consistently in the last 
three years however as a part of the operational review we have taken 
the decision not to further extend the mine life and to phase out the 
operation in 2013 we are currently starting to implement our closure plan 
for the operation and will engage with our employees as we move through 
this process as a result of this and in combination with the downward 
revision of reserves we have incurred a noncash impairment charge at 
the mine of us445 million for 2012
growth projects
we have continued to make very good progress on our growth projects 
over the year we are progressing the construction of the bulyanhulu cil 
expansion project and the board has approved the ordering of certain 
long lead items required for the acceleration of mining at the upper east 
expansion project at bulyanhulu these two projects will add meaningful 
longterm production to our core operating asset 10 wwwafricanbarrickgoldcom
chief executive officer’s statement continued
key challenges 
and mitigants challenges mitigants
power supply
 unreliable grid power optimising use of backup power
 ongoing review of alternative sources for  
power generation
security  trespass  
and vandalism
 incidences of trespass theft corruption  
and vandalism at operations
 upgrading security infrastructure
 development of security personnel
 progressing dialogue on law and order
community relations
 operational and reputational impact of  
legacy issues as a result of prior management  
of relations with local communities
 continue to build on existing community 
relationships
 abg maendeleo fund
 development of social management plans
land acquisition
 impact of land acquisition cost and delays in 
completing such acquisitions on current mining 
activities particularly at north mara
 engagement with local and central government  
to address land speculation
developing commercial 
mining industry
 challenge of developing and retaining  
a skilled workforce
 continuing investment in training and development
 continued progression of programmes for 
workforce localisation
on our greenfield exploration portfolio we continued to increase the size 
of the nyanzaga resource which now has an inpit resource of over 46 
million ounces “moz” of gold “ au” consisting of 375 moz at 142 gt 
au indicated and 085 moz at 181 gt au inferred we are currently 
finalising the prefeasibility study and expect to take a decision on whether 
to progress to a full feasibility study by the middle of the year
we also acquired an interest in over 2800 square kilometres of under 
explored highly prospective licence areas in kenya for an initial 
consideration of us22 million including exploration funding the 
licences add more than 20 existing targets from grassroots through to the 
drill testing stage into the exploration and development pipeline and will 
be the focus for a significant proportion of our exploration budget in 2013
drilling at north mara has continued to highlight the potential for 
underground development at both the gokona and nyabirama pits and 
we are undertaking the technical tradeoff analysis in order to establish 
how best to sequence the underground potential with the existing open pit 
operations in order to maximise the life of mine return from the mine
government relations
notwithstanding the acquisition of amkl in 2012 the majority of our 
assets and our cash flow remain in tanzania during 2012 we continued 
to build on the constructive dialogue we enjoy with the tanzanian 
government as our operations delivered significant benefits and value to 
our host communities the decision to voluntarily move to a royalty rate 
of 4 from 3 was one that abg instigated but it was also recognition of 
the improved level of cooperation we saw from the tanzanian authorities 
as we solved a range of taxation permitting and licensing issues some 
of which dated from several years back
as we move into 2013 there remains much to be done and it is vital we 
enjoy the ongoing support of the government in these areas across our 
asset base the lack of availability of reliable power is a key issue for us and 
one which is receiving attention at the highest levels within the tanzanian 
government and we look forward to the government delivering on its 
initiatives to alleviate this issue at north mara we have seen good 
support over the last few months in relation to improving law and order 
but need to resolve a number of land access issues to ensure we have the 
appropriate footprint for our operations and we look forward to the 
government’ s support in achieving this elsewhere we are encouraging the 
government to help resolve the pension fund issue which has impacted 
our workforce from a taxation perspective we are working closely with 
the appropriate authorities to ensure we minimise the level of working 
capital tied up in indirect tax payments which are recoverable under the 
terms of our mineral development agreements
licence to operate
from an operational perspective abg has a high quality and well 
invested portfolio of assets which positions us strongly for the long term 
however without the accompanying licence to operate and a stable 
working relationship with all stakeholders the quality of our assets could 
be significantly impacted for this reason the achievements we have made 
with the government and with our host communities on issues relating to 
our operating environment are of key importance we have benefited from 
a full year of operation of the abg maendeleo fund which has supported 
a range of projects across our operations throughout the year annual report and accounts 2012 11
shareholder information financial statements overview performance governance
in terms of the individual operations the key challenges are centred on 
north mara and we have made significant progress in 2012 in order to 
secure the longterm future of the mine in addition to the signing of 
vbias with the local communities we have invested 39 of the abg 
maendeleo fund’ s annual expenditure towards new infrastructure around 
north mara including rehabilitating the local health clinic the provision 
of clean water and the launch of a major school desk programme 
w e were also pleased to receive the renewal of the special mining licences 
“smls” at north mara the renewals are on the same terms and 
conditions as the previous licences and are both for a period of 15 years 
the original smls were issued in february 2000 and had expired in 
september 2011 since which time the mine continued to operate on the 
same basis due to the rollover provisions contained in the tanzanian 
mining act
the life of mine footprint continues to be a challenge at north mara 
as land acquisition is increasingly expensive due to the high levels of 
speculation this has led to the ongoing suspension of operations in the 
nyabirama pit we are engaging with local and central government in 
order to find a solution during the year we received waste rock permits 
necessary for the immediate operations of the site and we continue to 
apply for permits to meet ongoing requirements
we continue to work with the relevant authorities to progress the lifting of 
the environmental protection order at north mara in order to be able to 
discharge water nemc the environmental regulator has recently visited 
the operation for a final review and we are now awaiting their approval
outlook
abg enters 2013 with a highquality portfolio of assets and significant 
financial strength as a result of our net cash position of over us400 
million however we did not generate acceptable returns from the 
business in 2012 and with the production level forecast for this year we 
need to implement efficiencies in our operating cost base as well as 
applying capital more selectively to the business following the heavy 
investment made over the past three years these objectives will form the 
key pillars of our operational review together with a detailed assessment 
of our life of mine plans to establish the optimal mining rates as we move 
forward our operating environment has evolved substantially in recent 
years as have our assets and we need to ensure the organisation is 
properly set to maximise returns against this backdrop
at the mine level our expectation is for broadly similar production levels 
to 2012 at our buzwagi and north mara operations with lower production 
at bulyanhulu as we implement our recovery plan at the mine through the 
first half of the year and tulawaka as it comes to the end of its life in the 
second quarter of the year
as a result of our operational review we are targeting reductions to our 
cash cost per ounce as we go through the year while we estimate the cash 
cost per ounce for the year including royalties will be between us925
975 per ounce sold including a reduction of us120 per ounce sold due 
to a change in accounting for waste stripping ifric 20 we anticipate 
the run rate will be below this level by the end of the year 
with us135 million of capital being allocated to expansion projects 
principally at bulyanhulu we have set our sustaining capital budget at 
us100 million including land and we have allocated us210 million to 
capital development inclusive of deferred stripping the adoption of ifric 
20 which recognises eligible production phase deferred waste stripping 
costs as assets on a stagebystage basis as opposed to the previous single 
pit basis will increase our deferred stripping capitalisation by 
approximately us70 million over 2012
overall our key objectives for 2013 are
 achieving attributable group production of between 540000–
600000 ounces
 maintaining total cash cost including royalties of between us925–
us975 per ounce sold
 total capital expenditure of us445 million comprising us100 million 
of sustaining capital us210 million of capital development inclusive 
of deferred stripping and us135 million of expansion capital
 completing the operational review and implementing outcomes from 
the process
 substantially completing construction planned for the bulyanhulu 
cil expansion
 obtaining board approval for the bulyanhulu upper east expansion
 optimising group throughput and recoveries
 achieving growth in our overall resource base
 improving further our safety record
 continuing the development of our sustainability practices and
 continuing our disciplined focus on opportunities for strategic 
acquisitions throughout africa
finally i would like to thank all of my colleagues for their commitment 
enthusiasm and hard work throughout what has been an important year 
in the development of our business i would also like to thank our board 
for their unwavering support their wise counsel and their commitment 
throughout the year
greg hawkins 
chief executive officer