african barrick gold annual report  accounts 2011
annual report  
 accounts 2011
a strong 
platform 
 for growth about african barrick gold
a qu al ity afric an  
gold producer 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 with a highquality asset base solid growth 
opportunities and a clear strategy we have the objective of increasing 
our existing production to one million ounces per year by 2014
we aim to achieve this through our focused strategy of
 – driving operating efficiencies to optimise production from our existing asset base
 – growing through near mine expansion and development of advancedstage projects and
 – organic greenfield growth and acquisitions in africa
maintaining our licence to operate through acting responsibly in relation to our people the 
environment and the communities in which we operate is central to achieving our objectives
abg is a uk public company with its headquarters in london we are listed on the main market of 
the london stock exchange under the symbol abg and have a secondary listing on the dar es salaam 
stock exchange 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
go online to find more information 
wwwafricanbarrickgoldcom shareholder 
information
financial 
statements
governance performance overview
1
ann ual report and acco unts 2011
the o verview and performance sections make up the business r eview in accordance with section 417 of the c ompanies a ct 2006
forwardlooking statements
this report includes ‘forwardlooking statements’ that express or imply expectations of  
future events or results f orwardlooking 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 f orwardlooking statements are generally 
identified by the words ‘plans ’ ‘expects ’ ‘anticipates ’ ‘believes ’ ‘intends ’ ‘estimates’  
and other similar expressions
a ll forwardlooking statements involve a number of risks uncertainties and other factors 
a lthough a bg ’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 a bg  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 f actors that could 
cause or contribute to differences between the actual results performance and achievements 
of a bg 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 s outh a frican rand and t anzanian shilling exchange rates  
a bg ’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 a ccordingly 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 d isclosure and t ransparency  
r ules and the l isting r ules or applicable law a bg 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 a bg ’s expectations or reflect events or 
circumstances after the date of this report n o 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 a bg ’s profits or earnings per share for any 
future period will necessarily match or exceed the historical published profits or earnings  
per share of a bg or any other level
h ighlights and an 
introduction to our 
business and the  
way we work
performance  
highlights  2
g roup at a glance 4
c hairman’s  
statement  6
c hief e xecutive  
o fficer’s statement  8
business model 12
o perational 
performance market 
review key performance 
data and a review of our 
sustainable approach
o ur strategy  
and performance  14
key performance 
indicators 24
c hief o perating  
o fficer’s review  26
o perating review  30
e xploration and  
project development 38
f inancial review 42
c orporate  
responsibility 52
r isk management 70
a n explanation  
of our approach  
to corporate governance 
remuneration policies 
and practices and  
the people who 
champion them
board of d irectors  78
s enior management 80
c orporate governance 81
d irectors’ report 94
d irectors’  
responsibilities  
statement 99
r emuneration report 100
r eserves and  
resources 112
d etailed financial 
information for  
the year ended  
31 d ecember 2011
independent  
auditors’ report  
on the consolidated  
financial statements 117
c onsolidated  
financial statements 118
n otes to the  
consolidated  
financial statements 122
independent auditors’ 
report on the c ompany’s 
financial statements 165
parent company  
financial statements 166
n otes to the company 
financial statements 170
useful information  
for owners of  
a bg shares
g lossary of terms  181
basis of preparation  
for the reporting of  
tax data 184
shareholder  
enquiries 185
pg more information within this report
 g o online to find more information wwwafricanbarrickgoldcom 2
www africanbarrickgoldcom
performance highlights
continuing to 
deliver strong finan cials
s ome of the year’s key 
achievements include
ebi tda
1
 up 30 on 2010
r ecord cash margins
1
 of  
us895 per ounce
trebling of proposed final dividend  
to us131 cents per share
a veraged realised gold price
1
  
of us1587 per ounce for 2011
l aunch of abg d evelopment 
maendeleo f und the largest 
community development fund  
of its kind in tanzania
secondary listing on the  
d ar es salaam stock exchange
a successful year for exploration
 – highly successful drilling campaign 
at n yanzaga led to a fourfold 
increase in the inpit mineral 
r esource at the tusker deposit to 
35moz a u indicated and 06moz  
a u inferred 
 – tulawaka mine life extended twice 
now through to the end of 2012
 – initial resource declared at  
g olden r idge
revenue
us’000
us1217915
25 11 10 09 08 07
gold sales
2
oz
699539oz
3 11 10 09 08 07
gross profit
us’000
us513801
33 11 10 09 08 07
ebitda
1
us’000
us544091
30 11 10 09 08 07
operating cash 
flow per share
13
usshare
us122share
44 11 10 09 08 07
earnings 
per share
3
usshare
us670centsshare
26 11 10 09 08 07
total reserves
and resources
moz
315moz
17 11 10 09 08 07
lost time injury 
frequency rate
frequency rate
01
11 10 09 08 07 10
cash cost per 
ounce sold
1
usoz
us692oz
22 11 10 09 08 07 overview performanc e gov ernanc e financial 
sta temen ts
shar eho ld er 
informa tion
3
ann ual r epor t and acco un ts 2011
f inancial highlights
 – r evenue of us1218 million up 25 on 2010
 – ebi tda
1
 of us544 million up 30 on 2010
 – r ecord cash margins
1
 of us895 per ounce an increase of  
33 on 2010
 – n et income of us275 million with an eps of us670 cents  
up 26 on 2010
 – o perational cash flow of us498 million an increase of  
44 on 2010
 – c ash position of us584 million as at 31 d ecember 2011
 – proposed increase in final dividend to us131 cents per share 
making the total dividend for 2011 us163 cents per share  
up 208 on 2010
o perational highlights
 – a ttributable gold sales
2
 for the year of 699539 ounces 
g roup sales
2
 of 724574 ounces a 3 decrease on 2010 
driven by lower production
 – a ttributable gold production
2
 of 688278 ounces  
g roup production
2
 of 713508 ounces 2 below  
2010 production primarily due to the waste stripping 
programme at n orth mara and impact of power 
unreliability at buzwagi
 – increase in full year production at bulyanhulu buzwagi 
and tulawaka with lower production at n orth mara  
due to the planned focus on waste stripping
 – c ash costs
1
 of us692 per ounce an increase of 22  
on 2010 due to a combination of industry cost inflation 
increased diesel usage and higher headcount
1  c ash costs per ounce sold ebi tda  cash margin average realised gold price per ounce sold and operating cash flow per share are nonifr s financial performance measures with  
no standard meaning under ifr s r efer to n onifr s measures on page 50 for the full definitions of each measure
2  production and sold ounces reflect equity ounces which exclude 30 of tulawaka’s production base g roup production and sales consolidate 100 of tulawakas production  
and sales base
3  the 2007–2009 years’ basic earnings per share and operating cash flow per share comparatives were calculated using the 2010 number of average weighted shares as the  
c ompany was not incorporated in the prior years stated and thus had no share capital
improving the protability of our assets
group gold production ebitda
bulyanhulu north mara tulawaka buzwagi
6
196541
166113
73
20
170832
128627
16
40
58871
67973
74
attributable gold production
2
 oz and ebitda
1
 us’000 by mine
256504
42
262034
1 4
www africanbarrickgoldcom
group at a glance
a f o cus on a fr ica
where we operate
c urrently all of abg ’s mining operations are in  
tanzania w e believe that tanzania possesses significant 
mining potential c ritically it has an established legal  
and regulatory framework for mining companies  
and a history of political stability and democratically 
elected governments
a t present we have four gold producing mines all in 
n orthwest tanzania these are bulyanhulu buzwagi 
tulawaka and n orth mara
 headquarters london uk
o ur office in l ondon serves as abg ’s corporate headquarters and is the base for 
ab g ’s executive d irectors and other members of the senior l eadership team 
including the g eneral c ounsel and the head of c orporate d evelopment and 
investor r elations
 regional office dar es salaam t anzania
o ur office in d ar es salaam serves as the primary interface with the government  
in addition to being the logistical base in tanzania which provides incountry 
support to our operations o ther functions located in this office include community 
relations legal and a number of technical services
 regional office johannesburg south africa
o ur johannesburg office is the regional base for administrative finance human 
resources and procurement functions and a number of technical services for  
our operations
producing mines
bulyan hulu buzw agi north mara tula w aka 70
key features
 – production of 262034o z in 2011
 – underground mine with a life of 25 years
 – proven and probable reserves of 10632000o z
 – production of 196541o z in 2011
 – o pen pit mine with a 12 year mine life
 – proven and probable reserves of 2915000o z
 – production of 170832o z in 2011
 – o pen pit mine consisting of three open pits with  
a mine life in excess of ten years
 – proven and probable reserves of 3485000o z
 – production of 58871o z in 2011
 – c ompleted open pit mine with underground  
access ramp
 – proven and probable reserves of 64000o z
key priorities  
for 2011
 – a ccelerate underground production from upper  
east zone
 – c ontinue strong commitment to training with a focus 
on specialised skills
 – c ontinue the development and training of the 
operation’s workforce
 – c ontinue the acceleration of stage two mining
 – c omplete feasibility study for g okona underground
 – c ommission water treatment plant
 – o pen w est pit extension to supplement production
 – evaluate additional opportunities to further extend 
the mine life
progress in 2011
 – c ontinuation of rehabilitation work on the decline to 
the upper east zone
 – c ertification of the first two full crews of tanzanian 
a limak miners
 – initial expansion of mining fleet to improve  
pit scheduling
 – installation of full backup diesel power to provide 
plant stability
 – c ompletion of feasibility study at  
g okona underground
 – c ompletion of construction of water  
treatment plant
 – w est pit extension delivered first ore to the rom 
pad in the fourth quarter
 – mine life extended twice through to the end of 2012
key priorities  
for 2012
 – c omplete the construction of underground 
w orkshop and the shaft dewatering project
 – c omplete the cil expansion project and upper  
east zone feasibility studies
 – c ontinue our commitment to training  
and localisation
 – c omplete the detoxification plant upgrade and  
initial certification process under the international 
c yanide c ode
 – c ontinue the mining fleet expansion
 – maintain nameplate throughput in the mill
 – c omplete the commissioning of water treatment  
plant for the discharge of the environmental 
protection order
 – progress our objectives under the n orth mara 
c oexistence plan
 – d evelop the second access portal to  
the underground
 – increase current mining rates
 – c ontinue to evaluate additional opportunities  
to further extend the mine life
pg more information on page 30 pg more information on page 32 overview performanc e gov ernanc e financial 
sta temen ts
shar eho ld er 
informa tion
5
ann ual r epor t and acco un ts 2011
producing mines
bulyanhulu buzw agi north mara tula w aka 70
key features
 – production of 262034o z in 2011
 – underground mine with a life of 25 years
 – proven and probable reserves of 10632000o z
 – production of 196541o z in 2011
 – o pen pit mine with a 12 year mine life
 – proven and probable reserves of 2915000o z
 – production of 170832o z in 2011
 – o pen pit mine consisting of three open pits with  
a mine life in excess of ten years
 – proven and probable reserves of 3485000o z
 – production of 58871o z in 2011
 – c ompleted open pit mine with underground  
access ramp
 – proven and probable reserves of 64000o z
key priorities  
for 2011
 – a ccelerate underground production from upper  
east zone
 – c ontinue strong commitment to training with a focus 
on specialised skills
 – c ontinue the development and training of the 
operation’s workforce
 – c ontinue the acceleration of stage two mining
 – c omplete feasibility study for g okona underground
 – c ommission water treatment plant
 – o pen w est pit extension to supplement production
 – evaluate additional opportunities to further extend 
the mine life
progress in 2011
 – c ontinuation of rehabilitation work on the decline to 
the upper east zone
 – c ertification of the first two full crews of tanzanian 
a limak miners
 – initial expansion of mining fleet to improve  
pit scheduling
 – installation of full backup diesel power to provide 
plant stability
 – c ompletion of feasibility study at  
g okona underground
 – c ompletion of construction of water  
treatment plant
 – w est pit extension delivered first ore to the rom 
pad in the fourth quarter
 – mine life extended twice through to the end of 2012
key priorities  
for 2012
 – c omplete the construction of underground 
w orkshop and the shaft dewatering project
 – c omplete the cil expansion p roject and upper  
east zone feasibility studies
 – c ontinue our commitment to training  
and localisation
 – c omplete the detoxification plant upgrade and  
initial certification process under the international 
c yanide c ode
 – c ontinue the mining fleet expansion
 – maintain nameplate throughput in the mill
 – c omplete the commissioning of water treatment  
plant for the discharge of the environmental 
protection order
 – progress our objectives under the n orth mara 
c oexistence plan
 – d evelop the second access portal to  
the underground
 – increase current mining rates
 – c ontinue to evaluate additional opportunities  
to further extend the mine life
la ke 
victoria
north mara
t ulawaka bulyanhulu
nyanzaga
golden r idge
buzwagi
t a nza nia
pg more information on page 34 pg more information on page 36 6
www africanbarrickgoldcom
chairman’s statement
committed 
t o e x cellen ce
dear shareholders
o nce again it is a pleasure to present abg ’s annual report w e are pleased to report 
robust financial performance for the year overall notwithstanding certain challenges 
we have faced in our operating environment w e achieved record revenues of 
approximately us1218 million operating cash flows of us498 million and net 
income of us275 million w e ended the year with us584 million of cash on the 
balance sheet and no debt which provides us with significant strategic flexibility to 
pursue our growth ambitions over the coming years o ur financial strength overall 
has enabled the d irectors to recommend a significant step up in the final dividend of 
us131 cents per o rdinary share in addition to the us32 cents per o rdinary share 
that we paid in september w e achieved production of 688278 ounces of gold for the 
year which was marginally below our initial guidance range primarily as a result of 
interruptions to production schedules caused by power outages throughout the year
market outlook
g old was rarely far from the headlines in 2011 reaching a record high of  
us1921 per ounce in september as the global macroeconomic backdrop was  
again characterised by weakness g overnment balance sheets came under scrutiny 
amid increasing concern over the viability of the euro the debt ceiling in the us  
and a slowdown in c hina this uncertainty together with the weakening of the  
us dollar has led to strong demand for gold and we continue to be positive on the 
mediumterm outlook as global growth remains weak and g overnments attempt  
to reinflate their economies
g old’s outperformance has not been matched by the performance of gold equities 
which have instead tended to follow the wider market this decoupling from 
the underlying gold fundamentals is a frustration as we have demonstrated our 
substantial margin leverage to the increase in the gold price a s one of the largest 
gold producers in l ondon with significant growth opportunities we believe we  
will be able to continue to deliver shareholder value as we continue to build on  
our performance over the past 18 months
industry expertise
the a frican gold mining industry is both an exciting and challenging environment 
in which to operate industry and regional knowledge and expertise are critical in 
order to drive performance w e believe that abg is in a unique position as a 
midtier producer with the experience of acquiring financing and building mines  
in tanzania a country new to commercial mining as well as access to the world 
class knowledge and skill base of our supportive majority shareholder barrick
indeed it is the breadth of our experience that has assisted us when addressing issues 
caused by the loss of critical infrastructure and interruptions in core utilities supply 
during the year and in the development of action plans to help address and resolve 
the complex social and economic challenges that have impacted our operations 
particularly at n orth mara o verall and despite the challenges faced this year our 
management team has made a number of significant advancements in addressing a 
range of operational issues and remains committed to developing effective measures 
in order to strengthen our operations
significant value has again  
been added to the business  
in 2011 while navigating a  
series of challenges in our 
operating environment
aaron r egent
n o nex ec utiv e ch airman
2000
2200
2400
2600
2800
3000
11 10 09 08 07 06 05 04 03 02 01 00 99 98 97 96 95 94 93 92 91 90 89
source gfms
industry gold production
metric tonnes overview performanc e gov ernanc e financial 
sta temen ts
shar eho ld er 
informa tion
7
ann ual r epor t and acco un ts 2011
responsible mining
w e recognise the importance of developing our responsible mining practices to  
develop and support sustainability for the benefit of our stakeholder group as a whole  
in particular  we understand and seek to promote the benefits that the mining industry  
can bring to host communities throughout the year we have continued to strengthen  
our existing commitment to corporate social responsibility  through the development  
of additional policies and projects particularly at n orth mara moreover  we were 
delighted to launch the abg d evelopment maendeleo f und during the year  the largest 
community development fund of its kind in t anzania w e are excited by the opportunities 
that this fund presents to broaden our community investment programmes
solid governance and controls
w e have continued to build on the existing strength of our board throughout the 
year with the appointment of a mbassador mwapachu whose experience in 
tanzania and the wider region brings a new dimension to the board and d avid 
hodgson who brings 30 years’ experience across a frica d uring the course of the 
year bobby g odsell decided to step down from the board to pursue other interests 
and more recently james c ross has decided to retire from the board w e thank both 
of them for their contributions to abg and wish them well for the future
w e also completed our first board performance evaluation during the year w e view 
board assessment as critical to the evaluation of overall board effectiveness and 
performance f urther details regarding this process have been provided as part of 
our corporate governance report
w e have continued our focus on effective governance and controls throughout  
the year in order to support our business k ey to this was the development and 
adoption of abg ’s business management f ramework which applies throughout  
our organisation to guide the implementation of our standards in addition  
we have also reviewed our overall corporate governance framework in the  
context of our secondary listing on the d ar es salaam stock exchange
employee development
w e view our people as our greatest asset and are committed to promoting and 
developing the skill set of our workforce for the benefit of our business and industry 
generally w e have continued to invest in our training programmes throughout the  
year and have seen the first fruits of success from the underground training centre at 
bulyanhulu f urther initiatives for employee development are being advanced for 2012
outlook
2012 promises to be an exciting year w e will continue to optimise production from 
our existing asset base and expect to see some of our growth projects move through 
board approval and into the construction phase w e remain positive on the outlook 
for the gold industry and committed to further advancing our position as one of the 
leading a frican gold miners
f inally i would like to thank my fellow board members for their hard work 
dedication and valuable guidance throughout the year and i look forward to 
reporting again on our progress in 12 months’ time
aaron r egent
n o nex ec utiv e ch airman
we understand the benefits  
that responsible mining can  
bring to host communities and 
stakeholder groups 8
www africanbarrickgoldcom
chief executive officer’s statement
co n tinued progress
our core focus for 2011 was  
to continue to strengthen the 
business to be able to withstand 
unforeseen operational challenges 
and to position the company for 
future growth
g reg h awkins
ch ief ex ec utiv e o ffi c er
o ur core focus for 2011 was to continue to strengthen the business to be able to 
withstand unforeseen operational challenges and be positioned for future growth 
o ur operational improvement programmes have begun to bear fruit at all four 
mines with bulyanhulu buzwagi and tulawaka delivering increased production  
in 2011
the importance we place on shareholder returns is demonstrated by the d irectors 
recommending a final dividend of us131 cents per o rdinary share in addition  
to the us32 cents per o rdinary share that we paid in september w ith respect to 
dividend payments in future years the board has approved the following policy 
subject to the capital requirements and cash flows of the c ompany and provided  
that there are distributable reserves available to the c ompany for this purpose it is 
the board’s intention to declare an annual dividend of between 15 and 30 percent  
of profits after tax and minority interests each year it is expected that this will be 
payable in the approximate proportion of one third as an interim dividend and two 
thirds as a final dividend dependent on the performance of the c ompany being in 
line with the board’s expectations
w e have strengthened our commitment to tanzania throughout the year notably 
with the launch of the abg d evelopment maendeleo f und the largest community 
development fund of its kind in tanzania and our secondary listing on the  
d ar es salaam stock exchange the site intrusion at n orth mara in may served to 
highlight the importance of promoting social and economic integration in all local 
communities in which we operate w e are committed to effective dialogue with  
all stakeholders in the mara region in order to create an environment that allows  
for better coexistence and provides for improved law order and safety for all 
concerned w e have made encouraging progress in improving relationships in the 
mara region during the year and have introduced a number of initiatives to promote 
further integration within local communities w e will continue to develop projects 
that support our developing sustainability programme as a part of our approach to 
responsible mining to support our commitments and targets in this regard we have 
recently appointed a senior d irector of environment and c ommunity r elations to 
further enhance and support the existing experience of our specialist teams
a s regards our employees it is deeply regretful that we had one fatality at 
bulyanhulu during the year o ur target for all employees to go home safely  
every day remains our top priority 
operating and financial performance
positive performances at bulyanhulu buzwagi and tulawaka were able to largely 
offset the planned reduction at n orth mara due to the waste stripping programme 
and delivered production of 688278 ounces of gold marginally below our guidance 
for the year at a cash cost of us692 per ounce sold the higher average realised 
gold price helped us to deliver strong financial results achieving record revenues  
of us1218 million generating cash margins of us895 per ounce sold  
operating cash flow of us498 million and ending 2011 with a cash balance of 
us584 million o ur commitment to exploration has continued to bear fruit with  
a fourfold increase in the inpit resource at the tusker deposit at n yanzaga to over 
40moz and in tandem with our wider exploration efforts we have grown our total 
resource base by 17 to over 315moz of which 171moz are in the reserve category
gold price leverage
gold price performance over period – up 80
operating cash ow m – up 378
ebitda m – up 280
cash margin oz – up 213
0
100
200
300
400
500
600
700
800
900
11 10 09 08 overview performanc e gov ernanc e financial 
sta temen ts
shar eho ld er 
informa tion
9
ann ual r epor t and acco un ts 2011
the power situation in tanzania impacted our operations throughout the year 
resulting in an overall reduction in production of approximately 40000 ounces  
in 2011 the impacts of power outages were predominantly felt at buzwagi where 
unreliable power negated the operational turnaround and contributed to the sag 
mill motor failure in may w e have taken steps to address this firstly in july with  
the installation of 5 mw of spinning power and then in d ecember with a further  
16 mw of backup diesel power providing full redundancy to this operation  
w e anticipate that the sporadic interruptions in power supply will continue into 
2012 and we will continue to monitor this during the course of the forthcoming  
year in addition we aim to finalise the installation of full backup power at all  
of our mine sites by the end of q2 2012 which when completed is expected to 
significantly mitigate the effects of future power outages on production levels
addressing costs through optimisation
the rapid increase in the price of gold and the number of new projects coming 
onstream across a frica has introduced considerable inflationary cost pressures  
across our industry in particular competition for skilled labour has intensified which 
has led to increasing levels of wage inflation and significant movements in skilled  
personnel across the mining industry generally both of which must be monitored on  
an ongoing basis in order to assess potential impacts on our business and operations
o ne of our key focuses in 2012 is to further increase our localisation efforts to  
reduce reliance on international labour this should enable us to reduce a significant 
element of our cost base will continue to develop the technical skill sets in the 
tanzanian gold mining industry and will help us to mitigate fluctuations in 
personnel turnover 
w e also continue to invest in continual improvement programmes at each of the 
mines to optimise productivity these include the revamping of the hoisting schedule 
at bulyanhulu further debottlenecking at the n orth mara process plant and the 
redesigned flotation circuit at buzwagi
expanding our existing resources
w e have continued to evaluate a number of organic expansion opportunities 
throughout the year with a view to developing those projects which could  
expand our existing reserves and resources a key element of our strategy for  
the development of our business w e focused much of the budget on n yanzaga  
our key greenfield project on a number of targets at our n orth mara mine and  
on our major brownfield projects
n yanzaga has continued to deliver positive drill results which underpinned the 
significantly upgraded inpit resource announced in january 2012 w e are now 
aiming to move the project towards prefeasibility increasing its potential to  
become our fifth mine in tanzania
a t n orth mara the progression of land acquisitions around the g okona pit has 
meant that we have the potential to increase the open pit reserve ounces by up to 
300k oz through an additional lateral cut back of the open pit although this would 
have the effect of reducing the 2010 underground resource by up to 150k oz f urther 
investigation is required but the potential addition of the lower cost open pit ounces 
is a positive for the overall n orth mara mine while we believe the potential for an 
underground operation remains intact 
cash cost per 
ounce sold
1
usoz
us692oz
22 11 10 09 08 07
attribut able 
gold production
oz
688278oz
2 11 10 09 08 07
o ptimi sin g
 – r edesign of the flotation tanks and the 
installation of oversize pebble ports has 
helped to increase mill recoveries by  
9 to 88 at buzwagi
 – d ebottlenecking at n orth mara has 
improved plant throughput by 7
 – f ull backup power installed at buzwagi  
to mitigate grid power reliability issues
expanding
 – initiation of a feasibility study for the 
expansion of the cil circuit to reprocess  
the tailings at bulyanhulu
 – tulawaka mine life extended through  
to the end of 2012
 – g okona underground feasibility study 
concluded positively
g rowing
 – quadrupled the inpit resource on the 
tusker deposit at n yanzaga to 41moz
 – d eclared initial resource at g olden r idge 10
www africanbarrickgoldcom
chief executive officer’s statement continued
a t bulyanhulu we continue to rehabilitate the decline to the upper east zone and 
plan to initiate a test stope in q3 2012 ahead of seeking board approval for the 
project subject to their approval our expectation remains for initial production 
from the project around the end of 2014 in addition following the announcement 
of the mineral resource contained within our tailings facility at bulyanhulu the 
feasibility study for production from this resource is close to completion 
d uring 2011 we twice extended the mine life at t ulawaka currently to the end of 2012 
the project continues to outperform the original underground feasibility study and 
generates healthy cash flows w e will continue to explore in the upper east zone and 
have recently begun the process of opening the w est pit extension in order to provide 
supplemental mill feed and are confident we can further extend the mine life
elsewhere we are looking at alternative options for the g olden r idge project the 
feasibility work conducted at g olden r idge during 2011 focused on the opportunity 
to truck the ore to buzwagi and whilst generating positive returns the project did 
not pass our internal returns threshold w e are currently analysing alternative ways 
of developing the resource including trucking the ore to bulyanhulu depending on 
the outcome of our approval process for the bulyanhulu cil expansion project
w e also continue to evaluate other opportunities across a frica to supplement our 
organic growth plans and to diversify our asset base o ur balance sheet strength 
provides significant flexibility from which to leverage our operational expertise 
t axation
g iven the prevailing industry backdrop and current level of profitability of the 
mining sector we have proactively engaged with the tanzanian government and 
other stakeholders to ensure we make a contribution commensurate with the 
financial performance of our business to that end we have reached a settlement 
with the tanzanian r evenue a uthority over us126 million of indirect taxes owed 
to us and we paid income tax during the year amounting to us39 million on top  
of the royalties we have always paid and the indirect taxation we bring to the country 
in the form of payroll and other taxes 
w e will continue to work with the relevant authorities in order to consider abg ’s 
overall tax status in tanzania in order to ensure we achieve the optimum longterm 
structure for our c ompany and all of our stakeholders
outlook
o ur focus for 2011 was to continue to build on the foundations of 2010 and to have 
stable and consistent operational delivery w e have made significant progress in  
this respect despite the headwinds we faced primarily from the unreliable power 
situation in tanzania as well as the more generalised industry cost pressures a s a 
result of our continued capital investment and the recruitment of further operational 
expertise we enter 2012 from a position of strength having further enhanced our 
platform for future growth
w e aim to develop the business further in 2012 through the following key objectives
•	 achieving attributable g roup production between 675000–725000 ounces 
•	 maintaining total cash cost of between us790–us860 per ounce sold  
and direct cash operating cost of between us740–us810 per ounce sold 
we have continued to evaluate  
a number of opportunities 
throughout the year for near mine 
expansion a key element of our 
strategy for the development of  
our business overview performanc e gov ernanc e financial 
sta temen ts
shar eho ld er 
informa tion
11
ann ual r epor t and acco un ts 2011
•	 increasing g roup throughput and recoveries 
•	 completing feasibility studies at our brownfield projects 
•	 achieving growth in our overall resource base 
•	 improving further our safety record 
•	 continuing the development of our sustainability practices and 
•	 continuing our focus on opportunities for strategic acquisitions to expand  
our footprint throughout a frica
g iven the mine sequencing at each of our operations together with the forecast 
grade profiles it is our expectation that our production is likely to be split 4555 
between the first and second halves of the year with correspondingly higher  
cash costs in the first half of the year and lower in the second 
a t mine level our expectation is for broadly similar production levels to 2011 at our 
bulyanhulu buzwagi and tulawaka operations with higher production expected at 
n orth mara in the second half of the year with the completion of the waste stripping 
programme and access to higher grade material
d uring 2012 we expect to see additional cost pressures at buzwagi as we will be 
mining close to the reserve grade of 15gt which will necessitate mining and 
processing significantly higher levels of ore in order to maintain production rates
f inally 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
g reg h awkins
ch ief ex ec utiv e o ffi c er
k atrin a 
wh ite  
ge n eral 
c o un sel  
c o mpany 
secr etar y
k evin 
jennings  
cfo 
k o bus v an 
v uuren  
head of 
human 
res o urc es
g reg h awkins  
c eo 
peter sp o r a  
v ic e 
pr esid en t 
exp lora tion
andrew w r ay  
head of 
c o rpora te 
d ev elopm en t  
and inv esto r 
re la tion s
d eo d atus 
m w anyik a  
v ic e 
pr esid en t 
c o rpora te 
a ffair s
ma rco 
zole zzi  
 coo  pg d etails of the executives are on pages 78 and 80 12
www africanbarrickgoldcom
business model
cr eating a high 
performan ce organisation
a t abg we have a ‘best in class’ approach to business for our people our 
communities and the host countries in which we operate o ur business model 
focuses on the creation of a high performance organisation something that is 
fundamental for the realisation of our longterm strategy
high performance organisation
high performance organisation
people  
management
industry 
expertise
quality 
asset base
governance  
risk management
responsible 
mining
licence to operate
strong financial performance
operational excellence overview performanc e gov ernanc e financial 
sta temen ts
shar eho ld er 
informa tion
13
ann ual r epor t and acco un ts 2011
  establishing solid f oun dation s
a t the heart of our business model lie the foundations 
which we believe embody our commitment to excellence 
together these foundations form the base structure for  
the creation of a high performance organisation
industry expertise
w e believe that industry and regional knowledge and expertise are critical 
in order to drive performance a s 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 a frican region held 
between our board members and management team
quality asset base
o ur long life high grade reserve and resource base and the substantial 
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 into a pana frican player within  
our industry
g overnance and risk management
effective governance and controls is crucial for the realisation of  
our business strategy f or 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 and focus our business practices on best 
practice and international standards
r esponsible mining
w e conduct our business in a way that reflects our commitment to 
excellence for the benefit of all stakeholders as a whole w e 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
a n 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 
w e 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
  dev eloping key streng ths
w hen combined the foundations of our organisation 
create our core standards which in turn will create and 
develop key strengths in operational excellence and 
financial performance they also safeguard and help to 
promote our licence to operate a ll of these factors are 
fundamental qualities of a high performance organisation
o perational excellence
w e believe that the alignment of our operational and governance 
standards with international 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
o ur 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 allows us 
to produce strong financial results to support the development of our 
business and for our shareholders
l icence to operate
w e maintain our reputation as a good corporate citizen by mining in a 
responsible manner for the benefit of our people the environment and 
the host countries in which we work in turn this status provides and 
supports our licence to operate in the eyes of all relevant stakeholders 
allowing us to progress our business on the basis of common 
expectations and objectives  14
www africanbarrickgoldcom
our strategy and performance
our f ocus r e mains
strategic priorities
optimise
the existing  
asset base
expand
through near  
mine projects
grow
through greenfield 
opportunities and 
acquisitions in africa
w e aim to increase  
production across our  
existing assets through 
operational improvements
w e pursue organic growth 
opportunities to expand our 
existing resources
w e are committed to growing 
our operations in tanzania 
and transforming our business 
into a truly pana frican player 
within our industry
the main focus of abg’ s strategy is to increase our production levels 
to one million ounces of gold per year by 2014 through three 
strategic priorities
w e aim to deliver our strategy through these three priorities which are all underpinned 
by our philosophy 
responsible mining
maintaining our licence to operate
w e recognise the importance of developing our 
responsible mining practices for the benefit of 
our stakeholder group as a whole w e aim to 
maintain our licence to operate through acting 
responsibly in relation to our people the 
environment and the host countries we work in overview performance governance financial 
sta temen ts
shareholder 
informa tion
15
ann ual re por t and acco un ts 2011
w e aim to deliver on the strategic priorities through continually optimising 
and resequencing our asset base expanding our existing resources 
accessing ore in satellite deposits and pursuing organic development 
opportunities and acquisitions with the goal of increasing metal 
exposure per share 
w e plan to achieve our production targets while maintaining strict cost 
discipline and optimising capital efficiency to create shareholder value 
on an absolute as well as a per share basis
a t abg  we strive to empower and incentivise our employees  
to realise and deliver the full potential of our assets in order to 
enhance shareholder value a bove all else we are committed to  
being a responsible member of the communities where we operate 
and are determined to contribute not only to the national economy  
but also to the socioeconomic development and wellbeing of our 
host communities
tulawaka e xtension
bulyanhulu cil e xpansion
bulyanhulu upper e ast zone
g okona underground
g olden r idge
n yabirama underground
n yanzaga
2011 2012 2013 2014 2015 2016
ma and jv s
o rganic growth
l om production base
brownfield 
satellite
g reenfield 16
www africanbarrickgoldcom
optimising  
     the existing
         asset base
ko bus v an vuuren  
head of h uman  
reso urces
a t bulyanhulu we have recruited a number  
of highly skilled trainers to help develop and 
increase our pool of skilled incountry employees  
their training centre a converted space in  
the minedout 4700 level which serves as 
an underground mining school overview performance governance financial 
sta temen ts
shareholder 
informa tion
17
ann ual re por t and acco un ts 2011
our progress and future priorities
2011 progress
 – increased production at three of our four mines with n orth mara producing in line 
with expectations
 – improvements in productivity at bulyanhulu with an optimised hoisting schedule
 – underground training centre beginning to deliver results with the first two tanzanian 
a limak crews now certified
 – buzwagi operational improvement substantially complete but output hindered by 
power reliability issues
 – substantial completion of the waste stripping programme in the g okona and 
n yabirama pits at n orth mara
 – backup power installed at buzwagi to eliminate power reliability issues
 – mining fleet expansion at buzwagi to optimise the pit scheduling
priori ties for 2012
 – c ontinue to develop the local workforce to reduce reliance on international labour
 – c omplete underground workshop at bulyanhulu to improve maintenance downtime
 – c ompletion of the buzwagi detoxification plant
 – c ompletion of the n orth mara g old plant project to enhance recoveries
buzwagi plant enhancement
r edesign of the flotation tanks and the installation of oversize 
pebble ports has helped to increase mill recoveries by 9 to 88 
and to lift copper production by 17 to 72mlbs
mill recoveries  
up to
88
c o ppe r pr od uc tion  
up to 
72mlbs 18
www africanbarrickgoldcom
a s we progress our development projects our 
commitment to tanzania continues to grow and  
as a result we place the highest importance on 
engagement with the g overnment and other 
national stakeholders to ensure everyone benefits 
from this
deo da tus  
mw an yika  
vi ce pres iden t  
c or pora te  
aff airs
expanding 
through near
mine projects overview performance governance financial 
sta temen ts
shareholder 
informa tion
19
ann ual re por t and acco un ts 2011
our progress and future priorities
2011 progress
 – f easibility study at g okona underground completed
 – bulyanhulu upper e ast zone feasibility study concluded positively with test  
stope to be initiated in order to validate assumptions
 – tulawaka mine life extended through to the end of 2012
 – initiation of a feasibility study for the expansion of the bulyanhulu cil plant  
to reprocess tailings
 – s coping study for n yabirama underground initiated
priori ties for 2012
 – c omplete feasibility study for bulyanhulu cil e xpansion project
 – c omplete the test stope for the bulyanhulu upper e ast zone project
 – f inalise analysis of potential g okona lateral pit extension and resulting resequencing 
of the g okona underground project
 – c ontinue to investigate opportunities to extend the tulawaka mine life beyond 2012
 – progress the n yabirama underground project into a feasibility study
 – r ework the g olden r idge feasibility study
bulyanhulu ci l e xpansion project
abg is investigating the potential to expand the c arbon in l each 
c ircuit to 24mtpa in order to reprocess the tailings at bulyanhulu 
this would allow incremental low cost production whilst 
increasing plant flexibility for future projects
e x p a nd cil to
24mtpa 20
www africanbarrickgoldcom
growing
through greenfield
opportunities
w e have a strong operational platform from  
which to target geographic diversification  
together with the financial flexibility we have  
we are well positioned to take advantage  
of future opportunities
an dre w wra y  
head of cor pora te  
d evelo pmen t  
and inves to r  
rel a tions overview performance governance financial 
sta temen ts
shareholder 
informa tion
21
ann ual re por t and acco un ts 2011
our progress and future priorities
2011 progress
 – updated inpit resource at tusker deposit at n yanzaga in excess of 4moz a u 
consisting of 348moz at 147gt a u indicated and 598k oz at 205gt a u inferred
 – e ncouraging drilling results from the k ilimani deposit at n yanzaga
 – d eclared initial resource at g olden r idge
 – d eclared an indicated resource from bulyanhulu tailings
 – positive drilling results along the g okona corridor
 – c ontinued to assess opportunities within the a frican mining industry
priori ties for 2012
 – c ontinue resource definition drilling at n yanzaga
 – c omplete the drilling programmes at both g okona underground  
and n yabirama underground
 – f ollowup on initial g okona corridor drilling
 – c ontinue to assess potential ma and joint venture opportunities
n yanzaga
abg successfully completed a 65247 metre drilling programme 
on the n yanzaga deposit in 2011 quadrupling the inpit resource 
to 41moz 
to ta l in pit r e so ur ce  
up to
41moz 22
www africanbarrickgoldcom
responsible 
mining
the launch of the abg d evelopment maendeleo 
f und highlights the importance we place on 
community and social development w e view this 
as a key step in the development of our community 
and social strategies which we will use across our 
operations to ensure that our social contributions 
remain both visible and substantial
ka tr ina white 
gener al co unsel 
and com pan y 
secre tar y overview performance governance financial 
sta temen ts
shareholder 
informa tion
23
ann ual re por t and acco un ts 2011
our progress and future priorities
2011 progress
 – l aunch of the abg d evelopment maendeleo f und with an annual budget  
of us10 million to broaden community development initiatives
 – introduction of the n orth mara c oe xistence plan
 – c onstruction of the n orth mara w ater treatment plant
 – f urther development of h ealth  safety controls including c ommunity  
h ealth impact a ssessments
 – d evelopment of h uman r ights policy
priori ties for 2012
 – progress our objectives under the n orth mara c oe xistence plan
 – c omplete the commissioning of the n orth mara w ater treatment plant for the 
discharge of the e po
 – c omplete the permitting process for the creation of further paf waste dumps  
at n orth mara
 – o btain initial certification of buzwagi and recertification of bulyanhulu under the 
international c yanide management c ode 
 – a chieve 10 improvement in both our lost time injury frequency rate and our total 
reportable injury frequency rate
n orth mara w ater treatment plant
building of the treatment plant should allow n orth mara to 
process and ultimately discharge up to 4000m
3
 of clean water  
per day this forms a key part of the longterm water strategy  
to provide clean and sustainable water to all of the communities 
surrounding the mine
c lea n w a te r 
discharge up to
4000m
3 24
www africanbarrickgoldcom
our strategy and performance continued
key per for mance 
indica tors
w e assess the performance of our business against a number of k pis on a continuous basis the use of k pis  
in this way allows us to monitor and measure progress made in realising and implementing our strategy
1

financial operati onal no nfinancial
data
ebitda
2
us’000
us544091
30 11 10 09 08 07
earnings 
per share
3
usshare
us670centsshare
26 11 10 09 08 07
operating cash 
flow per share
23
usshare
us122share
44 11 10 09 08 07
cash cost per 
ounce sold
2
usoz
us692oz
22 11 10 09 08 07
cash cost per 
tonne milled
2
ustonne
us65tonne
18 11 10 09 08 07
total 
shareholder 
return tsr

243
307 11 10
attribut able 
gold production
4
oz
688278oz
2 11 10 09 08 07
total reserves 
and resources 
per share
oz1000 
shares
769oz1000 shares
17 11 10 09 08 07
lost time injury 
frequency rate
frequency rate
01
11 10 09 08 07 10
tot al report able 
injury frequency 
rate
frequency 
rate
12
11 10 09 08 07 14
d efinition full 
definitions for 
n onifrs 
measures are 
provided on  
page 50
e bitda earnings before 
interest taxes depreciation  
and amortisation is the net 
profit or loss for the period 
excluding income tax expense 
finance expense finance  
income and depreciation and 
amortisation including goodwill 
impairment charges
e arnings per share eps  
is calculated as the net  
profit attributable to equity 
shareholders divided by the 
weighted average of the number 
of o rdinary shares in issue 
o perating cash flow per share  
is the cash generated from or 
utilised in operating activities 
divided by the weighted average 
of the number of o rdinary 
shares in issue
c ash cost per ounce sold  
is calculated by dividing the 
aggregate of cash costs by 
attributed gold ounces sold
c ash cost per tonne milled  
is calculated by dividing the 
aggregate of cash costs by 
attributed ore tonnes milled
t otal shareholder return is  
the return on investment a 
shareholder receives over a 
specified time frame and takes 
into consideration the share  
price appreciationdepreciation 
and dividends received 
a ttributable production is the 
aggregate of the g roup ’ s equity 
interest in gold ounces produced 
from its mines
t otal reserves and resources per 
share are calculated as the total  
of proven and probable reserves 
plus measured indicated and 
inferred resources expressed in 
contained ounces divided by the 
total numbers of shares in issue 
using a ratio of 11000
lost time injury frequency  
rate l tifr is calculated as  
the number of lost time injuries 
multiplied by 200000 then 
divided by the total number  
of hours worked at each abg 
operation and in aggregate  
at abg
t otal reportable injury 
frequency rate trifr is 
calculated as the total reportable 
injuries multiplied by 200000 
then divided by the total number 
of hours worked at each abg 
operation and in aggregate  
at abg
performance  
in 2011
e bitda totalled us544091 
million in 2011 an increase  
of 30 on 2010 as a result  
of improved gold prices and  
record revenue 
e arnings per share amounted  
to us670 cents for 2011  
an increase of 26 on 2010  
the increase was driven by  
net profit for the year
o perating cash flow per share 
was us122 a 44 increase  
on 2010 as a result of  
improved revenue 
c ash cost per ounce sold was 
us692 per ounce for 2011  
a 22 increase on 2010 the 
increase was primarily due  
to increased costs incurred  
as a result of industrywide 
inflationary pressures and  
lower production
c ash cost per tonne milled  
was us65 per tonne for 2011 
18 higher than in 2010 
primarily as a result of increased 
direct mining costs and lower 
tonnes milled 
t otal shareholder return  
was 243 for the year 
compared to 64 in 2010 
primarily due to the decrease  
in the abg share price over  
the year 
a ttributable production  
for the year was 688278 ounces 
2 lower than 2010 primarily 
due to the impact of power 
outages in t anzania
t otal reserves and resources  
per share equalled 769o z 
1000 shares an increase of  
17 on 2010 
lost time injury frequency  
rate for the year was 01  
a 10 increase on 2010
t otal reportable injury 
frequency rate was 12 for  
the year a 14 improvement  
on 2010
r elevance e bitda is a valuable indicator 
of abg ’ s ability to generate 
operating cash flow that can  
fund its working capital needs 
service debt obligations and  
fund capital expenditures
e arnings per share serves  
as an indicator of abg ’ s 
profitability and is a primary 
indicator in determining  
share price and value 
o perating cash flow per share 
helps to measure abg ’ s ability to 
generate cash from its business 
c ash cost per ounce sold is  
a key indicator used by abg  
to monitor and manage those 
factors that impact production 
costs on a monthly basis
c ash cost per tonne milled  
is a key indicator used by abg 
management to track cash  
costs against productivity 
t otal shareholder return  
is a key indicator that is used  
to compare the performance  
of abg ’ s shares over time  
against industry peers
a ttributable production 
demonstrates progress towards 
achieving our target of increasing 
production to one million  
ounces per year by 2014
t otal reserves and resources per 
share is a measure of our ability 
to discover and develop new ore 
bodies and to replace and extend 
the life of our operating mines 
lost time injury frequency  
rate focuses on employee and 
contractor injuries in the 
workplace that result in days lost 
from work it is used to measure 
progress towards our health and 
safety goal of ensuring that every 
employee goes home safe and 
healthy every day 
t otal reportable injury 
frequency rate encompasses  
a wider range of injury reporting 
tracking all employee and 
contractor reported workplace 
injuries that require medical 
treatment including lost time 
and restricted duty  it is also used 
to measure progress towards our 
health and safety goal of ensuring 
that every employee goes home 
safe and healthy every day 
l ink to strategy
optimise expandgrow grow optimise optimise grow expandgrow grow responsible 
mining
responsible 
mining
1  h istorically and prior to our initial public offering the operations of the abg g roup 
comprised the tanzanian gold mining business of barrick 
2  c ash costs per ounce sold ebi tda  operating cash flow per share and cash costs  
per tonne milled are nonifrs financial performance measures with no standard 
meaning under ifrs  r efer to n onifrs measures on page 50 for the full  
definitions of each measure overview performance governance financial 
sta temen ts
shareholder 
informa tion
25
ann ual re por t and acco un ts 2011
financial operati on al n on financial
data
ebitda
2
us’000
us544091
30 11 10 09 08 07
earnings 
per share
3
usshare
us670centsshare
26 11 10 09 08 07
operating cash 
flow per share
23
usshare
us122share
44 11 10 09 08 07
cash cost per 
ounce sold
2
usoz
us692oz
22 11 10 09 08 07
cash cost per 
tonne milled
2
ustonne
us65tonne
18 11 10 09 08 07
total 
shareholder 
return tsr

243
307 11 10
attribut able 
gold production
4
oz
688278oz
2 11 10 09 08 07
total reserves 
and resources 
per share
oz1000 
shares
769oz1000 shares
17 11 10 09 08 07
lost time injury 
frequency rate
frequency rate
01
11 10 09 08 07 10
tot al report able 
injury frequency 
rate
frequency 
rate
12
11 10 09 08 07 14
d efinition full 
definitions for 
n onifrs 
measures are 
provided on  
page 50
ebitda earnings before 
interest taxes depreciation  
and amortisation is the net 
profit or loss for the period 
excluding income tax expense 
finance expense finance  
income and depreciation and 
amortisation including goodwill 
impairment charges
e arnings per share eps  
is calculated as the net  
profit attributable to equity 
shareholders divided by the 
weighted average of the number 
of o rdinary shares in issue 
o perating cash flow per share  
is the cash generated from or 
utilised in operating activities 
divided by the weighted average 
of the number of o rdinary 
shares in issue
c ash cost per ounce sold  
is calculated by dividing the 
aggregate of cash costs by 
attributed gold ounces sold
c ash cost per tonne milled  
is calculated by dividing the 
aggregate of cash costs by 
attributed ore tonnes milled
t otal shareholder return is  
the return on investment a 
shareholder receives over a 
specified time frame and takes 
into consideration the share  
price appreciationdepreciation 
and dividends received 
a ttributable production is the 
aggregate of the g roup ’ s equity 
interest in gold ounces produced 
from its mines
t otal reserves and resources per 
share are calculated as the total  
of proven and probable reserves 
plus measured indicated and 
inferred resources expressed in 
contained ounces divided by the 
total numbers of shares in issue 
using a ratio of 11000
lost time injury frequency  
rate l tifr  is calculated as  
the number of lost time injuries 
multiplied by 200000 then 
divided by the total number  
of hours worked at each abg 
operation and in aggregate  
at abg 
t otal reportable injury 
frequency rate trifr  is 
calculated as the total reportable 
injuries multiplied by 200000 
then divided by the total number 
of hours worked at each abg 
operation and in aggregate  
at abg 
performance  
in 2011
ebitda totalled us544091 
million in 2011 an increase  
of 30 on 2010 as a result  
of improved gold prices and  
record revenue 
e arnings per share amounted  
to us670 cents for 2011  
an increase of 26 on 2010  
the increase was driven by  
net profit for the year
o perating cash flow per share 
was us122 a 44 increase  
on 2010 as a result of  
improved revenue 
c ash cost per ounce sold was 
us692 per ounce for 2011  
a 22 increase on 2010 the 
increase was primarily due  
to increased costs incurred  
as a result of industrywide 
inflationary pressures and  
lower production
c ash cost per tonne milled  
was us65 per tonne for 2011 
18 higher than in 2010 
primarily as a result of increased 
direct mining costs and lower 
tonnes milled 
t otal shareholder return  
was 243 for the year 
compared to 64 in 2010 
primarily due to the decrease  
in the abg share price over  
the year 
a ttributable production  
for the year was 688278 ounces 
2 lower than 2010 primarily 
due to the impact of power 
outages in t anzania
t otal reserves and resources  
per share equalled 769o z 
1000 shares an increase of  
17 on 2010 
lost time injury frequency  
rate for the year was 01  
a 10 increase on 2010
t otal reportable injury 
frequency rate was 12 for  
the year a 14 improvement  
on 2010
r elevance ebitda is a valuable indicator 
of abg ’ s ability to generate 
operating cash flow that can  
fund its working capital needs 
service debt obligations and  
fund capital expenditures
e arnings per share serves  
as an indicator of abg ’ s 
profitability and is a primary 
indicator in determining  
share price and value 
o perating cash flow per share 
helps to measure abg ’ s ability to 
generate cash from its business 
c ash cost per ounce sold is  
a key indicator used by abg  
to monitor and manage those 
factors that impact production 
costs on a monthly basis
c ash cost per tonne milled  
is a key indicator used by abg 
management to track cash  
costs against productivity 
t otal shareholder return  
is a key indicator that is used  
to compare the performance  
of abg ’ s shares over time  
against industry peers
a ttributable production 
demonstrates progress towards 
achieving our target of increasing 
production to one million  
ounces per year by 2014
t otal reserves and resources per 
share is a measure of our ability 
to discover and develop new ore 
bodies and to replace and extend 
the life of our operating mines 
lost time injury frequency  
rate focuses on employee and 
contractor injuries in the 
workplace that result in days lost 
from work it is used to measure 
progress towards our health and 
safety goal of ensuring that every 
employee goes home safe and 
healthy every day 
t otal reportable injury 
frequency rate encompasses  
a wider range of injury reporting 
tracking all employee and 
contractor reported workplace 
injuries that require medical 
treatment including lost time 
and restricted duty  it is also used 
to measure progress towards our 
health and safety goal of ensuring 
that every employee goes home 
safe and healthy every day 
l ink to strategy
optimise expandgrow grow optimise optimise grow expandgrow grow responsible 
mining
responsible 
mining
3  the 2007–2009 years’ basic earnings per share and operating cash flow per share 
comparatives were calculated using the 2010 number of average weighted shares as the 
c ompany was not incorporated in the prior years stated and thus had no share capital
4  production reflects equity ounces which exclude 30 of tulawaka’s  
production base 26
www africanbarrickgoldcom
chief operating officer’s review
d r iving pr oc ess and 
per for mance
the underlying performance  
of each of our assets has  
improved over the year with  
three of our four mines achieving 
production increases
marco zo le zzi
c hief op er a ting o ffi cer
the underlying performance of each of our assets has improved over the year with 
three of our four mines achieving production increases h owever the instability  
of power supply created a number of challenges to production through the year 
something that ultimately led to a reduction of approximately 40000 ounces in the 
year against plan a s such whilst we made significant strides in improving each of 
our assets we ended the year with 688278 ounces of production 2 below 2010
o ur cash costs for the year saw a 22 increase over 2010 to us692 per ounce sold 
the increase was primarily due to wide ranging inflationary pressures principally  
on labour due to increased competition across the industry for skilled personnel  
and increased staffing levels energy due to higher oil prices and increased usage 
especially in backup power generation consumables and contract services as well  
as lower than expected capitalised costs and a lower production base c ash costs  
of us65 per tonne milled for the year have increased from the 2010 figure of  
us55 per tonne as a result of the above and a decrease in milled tonnes as a result 
of power related issues and an increased proportion of ore from the underground  
at tulawaka
w e continued to reduce our gold product inventory levels and as a result sold 
699539 gold ounces for the year 2 above production
w e mined 451 million tonnes of ore and waste for the year compared to  
400 million in 2010 the increase was driven primarily by the focus on waste 
stripping at the g okona and n yabirama open pits at n orth mara in order to access 
high grade ore from 2012 and at buzwagi which entered stage 2 of the mine plan
tonnes of ore processed for the year totalled 74 million a 4 decrease on 2010 
levels the change was predominantly driven by reduced throughput at buzwagi  
due to the failure of the sag mill motor frequent power interruptions and enforced 
shutdowns for maintenance
the average grade processed for the year was 33 grams of gold per tonne in line 
with the prior year the increase in grades at tulawaka and buzwagi were offset by 
lower grades from bulyanhulu and n orth mara due to planned mine sequencing
o ur copper production for the year of 149 million pounds represents a 6  
increase on 2010 which reflects improved recoveries at buzwagi due to process  
plant enhancements
bulyanhulu delivered another year of production increases exceeding the prior year 
amount by 2161 ounces mainly driven by increased ore tonnes hoisted and milled 
this was partially offset by a lower processing grade of 85gt 92gt in 2010 mainly 
due to mine sequencing impacting on the mining grade and blockages in the paste 
fill lines limiting access to primary stopes c ash costs per ounce sold increased from 
us539 per ounce sold to us610 driven by the increase in direct mining costs overview performance governance financial 
sta temen ts
shareholder 
informa tion
27
ann ual re por t and acco un ts 2011
k ey operational focus areas
 – d eliver maximum sustainable production and  
cost discipline
 – maintain focus on best leadership management  
and technical practices
 – c omplete the enhancement of site security 
infrastructure and processes
 – build on improvements to health and safety systems 
and processes
 – c ontinue the development of training for workforce 
and local communities 
 – translate strategy into capital allocation  
optimise capital allocation and realise key  
business opportunities
2011 2010
o perating results
tonnes mined thousands of tonnes 45053 40016
o re tonnes mined thousands of tonnes 7013 7970
o re tonnes processed thousands of tonnes 7409 7706
process recovery rate percent 877 861
h ead grade grams per tonne 33 33
a ttributable gold production ounces¹ 688278 700934
a ttributable gold sold ounces¹ 699539 724083
c opper production thousands of pounds 14875 14093
c opper sold thousands of pounds 15069 13370
c ash cost per tonne milled² 65 55
per ounce data usounce
a verage spot gold price³ 1572 1225
a verage realised gold price² 1587 1240
c ash cost² 692 569
a mortisation and other costs
2
184 147
total production costs
2
876 716
c ash margin² 895 671
a verage realised copper price uslb 382 354
1  production and sold ounces reflect equity ounces which exclude 30 of tulawaka’s production base
2  c ash cost per tonne milled average realised gold price per ounce sold cash cost per ounce sold 
amortisation and other costs per ounce cash margin and total production costs per ounce are nonifrs 
financial performance measures with no standard meaning under ifrs  r efer to n onifrs measures  
on page 50 for definitions
3  r eflects the l ondon pm fix price  
a n explanation of mine statistical information is included on page 51
it was deeply regrettable that we suffered an employee fatality at bulyanhulu as a 
result of a rock fall in march w e continue to place great importance on sending 
every employee home safely every day and instigated a thorough investigation  
into the incident to prevent future occurrence a s part of ongoing reviews into 
h ealth and safety reporting during the year we have maintained l ost time injury 
f requency r ate l tifr  as a key performance indicator and have increased 
reporting on our total r eportable injury f requency r ate trifr  such that we will 
report this as an additional key performance indicator going forward together 
these indicators track the number of overall reportable injuries within our operating 
environment f or the reporting period abg ’s aggregate l tifr for the year was 01 
a 10 increase on 2010 w e ended the year with a trifr of 12 a 14 improvement 
on 2010 which is highly encouraging overall a s ever we will continue our focus on 
progressing and achieving further improvements in health and safety in 2012
a s a result of the waste stripping programme in the g okona and n yabirama pits 
n orth mara delivered production in line with management’s expectations but 20 
lower than 2010 d uring the second half of the year tonnes mined were lower than 
planned as a result of paf waste dumping constraints provisional permits have now  28
www africanbarrickgoldcom
chief operating officer’s review continued
been granted and construction of further paf dumps is underway to alleviate the 
constraint c ash cost per ounce sold increased as expected to us810 per ounce 
from us472 per ounce when compared to 2010 as a result of the reduced 
production base and increased direct mining costs
mining operations at n orth mara were overshadowed by events relating to the  
illegal site intrusion in may when approximately 1500 intruders a number of whom 
were armed stormed the ore stockpile in addition to working with the tanzanian 
police force as part of their investigations we have undertaken our own investigation 
into this incident to date preliminary findings from the police work have led to a 
number of arrests of individuals suspected of having been involved in provoking or 
organising the incident as well as other illegal activities in the area w e also continue 
to review and implement a number of measures to address key legacy issues many 
of which predate barrick’s and subsequently abg ’s ownership of the operation in 
order to promote effective dialogue with the surrounding communities and support 
dialogue on wider law and order considerations in the region these enhancements 
to our existing programmes are already delivering tangible improvements and we 
expect to achieve further progress over the course of 2012 
w e continued to liaise with the relevant government departments for the renewal of 
the n orth mara mining licence throughout the year a t present the approval process 
continues to await the formation of a mining a dvisory board for the purposes of 
processing our renewal application and until then we will continue to operate under 
our existing licence in accordance with applicable mining legislation until such 
time as our application can be determined ultimately we expect the licence renewal 
to be on substantially the same terms as our existing licence and for the remainder  
of n orth mara’s mine life
w e have also made significant progress in addressing outstanding issues relating to 
the discharge of the e po at n orth mara and progressing permitting processes for 
purposes of accommodating future mining activities the tanzanian n ational 
e nvironmental c ouncil nemc  has recently confirmed our compliance with all 
requirements under the e po  further to the construction of the water treatment 
plant commissioning of the plant is now underway w e expect to complete this 
process during the first half of 2012 following which we expect the e po to be lifted
f rom a permitting perspective we are currently seeking regulatory approvals for life 
of mine paf waste rock dumps to accommodate future mining activities a process 
we anticipate will be achieved during the second half of 2012 in the interim we have 
obtained a provisional construction permit which allows for dump construction at 
an extension to the existing paf waste rock dumps to provide support for n orth 
mara’s waste stripping schedule in the intervening period
our focus in 2012 will remain  
on achieving operational 
excellence in order to deliver  
stable production levels overview performance governance financial 
sta temen ts
shareholder 
informa tion
29
ann ual re por t and acco un ts 2011
buzwagi’s production for the year was 6 higher than the prior year period 
although was around 35000 ounces below management’s expectation as a result  
of the power reliability issues the lower than expected production for the year was 
primarily driven by the decrease in ore tonnes milled as a result of plant downtime 
due to the sag mill motor failure a direct result of increased power disruptions and 
further power related unplanned maintenance and critical component replacement 
to help mitigate interruptions to power supply we installed 21 mw of backup 
power at buzwagi during the year a lthough the addition of backup power at a cost 
of us193 million will have an ongoing impact on operating costs we continue to 
believe that the benefits of continuous power significantly outweigh the cost w e 
continue to see the positive effects of the operational turnaround at buzwagi due to 
investment in the process plant expansion of the mining fleet optimisation of the 
drill and blast and load and haul stringent security measures and ongoing training 
programmes and are confident that we are well positioned as we enter 2012
tulawaka has continued its good performance with production increasing 40  
year on year mainly driven by the increased underground grade delivered a s the 
stockpiles from the exhausted open pit ran down we began the process of opening 
the w est pit e xtension in the fourth quarter to provide supplemental mill feed to  
the high grade underground ore to enable the mill to run at optimal levels w e  
will continue to explore and where feasible progress opportunities to increase 
production from this operation in 2012
l ooking forward we believe that we are well positioned to deliver on the potential  
of the c ompany’s asset base as we enter 2012 this year our focus will remain  
on achieving operational excellence in order to deliver stable and profitable 
production levels
marco zo le zzi
c hief op er a ting o ffi cer 30
www africanbarrickgoldcom
operating review
bu lyanhu lu 
d e livering on stra tegy
pr ogress agains t o ur 2011 pri ori ties
 – c ontinuation of rehabilitation work on the decline to the upper e ast 
zone test stope area identified
 – c ertification of the first two full crews of tanzanian a limak miners
 – initiation of feasibility study for the bulyanhulu cil e xpansion 
project for the reprocessing of tailings
 – significant increase in ore hoisted and mill throughput
 – implementation of revised corporate standard for ground control 
management plan
2012 pri ori ties
 – c omplete the construction of underground w orkshop and shaft 
dewatering project
 – c omplete the cil e xpansion project feasibility study and upper e ast 
zone test stope
 – c ontinue our commitment to training and localisation
 – o ptimise gold plant performance
 – c ommission c ell 3 of tailings storage facility
ke y mine sta tis tics c o n trib ution to to tal gro up o unces
38
262034oz 141trifr 
169moz
total reserves
and resources
 
l ake 
vict ori a
bulyanhulu
y ear ended 31 d ecember
2011 2010  variance
underground ore tonnes hoisted k t 1048 958 9
o re milled k t 1056 954 11
h ead grade gt 85 92 8
mill recovery  912 922 1
o unces produced o z 262034 259873 1
o unces sold o z 269981 262442 3
c ash cost per ounce sold uso z 610 539 13
c ash cost per tonne milled ust 156 148 5
c opper production k lbs 7675 7958 4
c opper sold k lbs 7716 7896 2
c apital expenditure us’000 95432 80539 18
the statistical information presented includes n onifrs measures  
a n explanation of n onifrs measures is included on page 50 and 51 overview performance governance financial 
sta temen ts
shareholder 
informa tion
31
ann ual re por t and acco un ts 2011
bulyanhulu mine overview
the mine consists of an underground mine a process plant waste rock 
dumps tailings containment water management ponds and associated 
facilities the mine is an underground trackless operation using 
longhole as its principal stoping method with alimak drift and fill  
and conventional cut and fill the other primary mining methods the 
process plant has the capacity to process an average of approximately 
3300 tonnes of ore per day approximately 11 million tonnes per year 
operating 24 hours a day on a 365 day per year basis a s at 31 d ecember 
2011 a total of 2853 individuals were employed at bulyanhulu 
consisting of 2448 g roup employees and 405 contracted personnel
bulyanhulu is a narrowvein gold mine containing gold silver and 
copper mineralisation in sulphides mineralisation of bulyanhulu is 
associated with steeplydipping reefs to date a number of distinct reefs 
have been identified including r eef zero r eef o ne and r eef two 
bulyanhulu’s life of mine is currently estimated to be over 25 years 
based on its proven and probable gold reserves of 10632000 ounces
operating performance
bulyanhulu delivered positive results in 2011 hitting key production 
targets for the year g old production for the year was 262034 ounces 
1 higher than the prior year’s total of 259873 ounces mainly due to  
a 9 increase in ore tonnes hoisted and an 11 improvement in mill 
throughput partially offset by a reduction in head grade 
h ead grade of 85gt was lower than the prior year 92gt as a result  
of mine sequencing which resulted in increased tonnes from lower 
grade zones together with blockages in paste fill lines limiting access  
to primary long hole stopes the lower mined grade together with  
lower recoveries in the cil circuit led to a lower recovery rate of 912 
g old ounces sold for the year were 269981 ounces which was 3 
higher than the production figure and also 3 higher than 2010 the 
increase in sales was due to improved working capital management 
combined with an increase in the production base of 2161 ounces 
c opper production for the year of 77 million pounds was 4 lower 
than that of the same period in 2010 this was mainly due to lower 
recoveries as the result of operational issues experienced in the  
flotation plant
c ash costs for the year of us610 per ounce sold were 13 higher than 
the prior year of us539 inflationary pressures on costs were widely  
felt as a result of the high gold price environment principally in labour 
from both increased staffing levels and increased salaries as a result of 
competition for skilled labour and energy reflective of higher levels of 
mining and milling activity c onsumables and maintenance also saw 
increases due to increased activity levels and inflationary pressure  
while sales related costs were higher due to higher revenue increased 
coproduct revenue driven by increased realised copper prices  
partially offset the increase 
c ash costs per tonne milled increased to us156 in 2011 us148 in 
2010 as a result of the costs outlined above
c apital expenditure for the year of us954 million was 18 higher 
than the prior year of us805 million the key areas of capital 
investments include capitalised underground development expenditure 
us327 million ventilation equipment us44 million business 
optimisation systems us42 million expansion of the power 
generation capacity us40 million workshop construction  
us20 million tailings storage facility expansion us17 million 
shaft dewatering system us13 million expansion of the process 
plant us11 million and various other investments in mine 
equipment included in total capital expenditure is a noncash 
reclamation adjustment which amounted to us133 million
w e suffered one fatality at the mine this year which is deeply 
regrettable d etails of the fatality and the actions that we have taken  
in response to this are provided as part of our health and safety report 
on page 63 32
www africanbarrickgoldcom
operating review
buz w agi 
c on str ained by power
pr ogress agains t o ur 2011 pri ori ties
 – e xpansion of mining fleet to improve pit scheduling
 – installation of full backup diesel power to provide plant stability
 – f urther development and training of workforce
 – installation of oversize pebble ports to improve mill throughput
 – c ompletion of flotation tank automation to improve  
copper recoveries
 – a cceleration of mine plan recovery to improve ore supply  
throughout 2011 and into 2012
2012 pri ori ties
 – c omplete the detoxification plant upgrade and initial certification 
process under the international c yanide c ode
 – c ontinue the mining fleet expansion
 – maintain nameplate throughput in the mill
 – improve mill availability and utilisation
 – improve efficiencies in power supply with the installation  
of capacitors
 – c omplete the k nelson free gold concentrator upgrade
ke y mine sta tis tics c o n trib ution to to tal gro up o unces
29
196541oz 143trifr 
46moz 
total reserves
and resources
 
y ear ended 31 d ecember
2011 2010  variance
tonnes mined k t 21534 18848 14
o re tonnes mined k t 3545 4285 17
o re milled k t 2993 3553 16
h ead grade gt 23 20 15
mill recovery  880 810 9
o unces produced o z 196541 186019 6
o unces sold o z 200518 198221 1
c ash cost per ounce sold uso z 691 685 1
c ash cost per tonne milled ust 46 38 21
c opper production k lbs 7201 6135 17
c opper sold k lbs 7353 5473 34
c apital expenditure us’000 83203 29781 179
the statistical information presented includes n onifrs measures  
a n explanation of n onifrs measures is included on page 50 and 51
l ake 
vict ori a
buzwagi overview performance governance financial 
sta temen ts
shareholder 
informa tion
33
ann ual re por t and acco un ts 2011
buzwagi mine overview
buzwagi consists of an open pit mine oreprocessing facilities a waste  
rock storage facility a tailings storage facility water management and  
other ancillary facilities the mill is designed with a throughput capacity  
of 12000 tonnes of ore per day and the mine is capable of moving 
approximately 44 million tonnes of ore per year a s at 31 d ecember 
2011 a total of 2099 individuals were employed at buzwagi consisting 
of 1004 g roup employees and 1095 contracted personnel
buzwagi is a shearhosted quartzveined deposit hosted in  
porphyritic granite buzwagi’s life of mine is currently estimated  
to be approximately 12 years based on its proven and probable  
gold reserves of 2915000 ounces
operating performance
d espite an increase in production 2011 has been a frustrating year at 
buzwagi as the impact of power disruptions masked the operational 
improvements at the mine g old production increased to 196541 
ounces compared to 186019 ounces in the previous year a direct result 
of higher grades and a step up in recoveries to 88 but mill throughput 
was down by 16 mainly due to the impact of power outages and 
resulting unplanned maintenance and critical component replacement 
the sag mill motor failure in may and power related maintenance and 
critical plant replacements a result of the frequent restarts caused by 
continuing interruptions to electricity supply had a significant impact 
on milling capacity w e estimate these power disruptions and related 
issues led to a loss of production of approximately 35000 ounces for  
the year the installation of 5 mw of spinning power in july had a 
positive impact but it was not until the installation of a further 16 mw 
of backup power at the beginning of d ecember that full redundancy 
was provided for the mill
g old ounces sold increased by 1 to 200518 ounces from  
198221 ounces exceeding production by 2 due to the increased 
production levels
c opper production for the year of 72 million pounds was 17 above 
the prior year’s production this was mainly due to the improvements 
made to the plant increasing recoveries for the current year
c ash costs for the year were us691 per ounce sold compared to 
us685 in 2010 c ash costs have been affected by increased labour 
costs due to inflationary increases and increased headcount specifically 
in the security and mine production areas with increased mining 
activity leading to increased consumable maintenance and energy costs 
e nergy costs were also impacted by the installation of diesel backup 
power and increased mining fleet the increases were partially offset  
by increased capitalised stripping costs due to the waste stripping 
undertaken increased coproduct revenue as a result of increased 
copper production up 17 on 2010 increased realised copper pricing 
and the increased production base 
c ash costs per tonne milled increased to us46 in 2011 from us38  
in 2010 the increase in costs was primarily due to the key factors 
explained above and the impact of the shutdown from the sag mill 
motor failure and power outages and related issues 
d uring 2012 we expect to see additional cost pressures as we will be 
mining close to the reserve grade of the mine of 15gt which will 
necessitate mining and processing significantly higher levels of ore  
in order to maintain production rates
c apital expenditure for the year was us832 million compared  
to us298 million in 2010 c apital investment in 2011 was  
primarily focused on backup power generation us193 million 
capitalised waste stripping us156 million mining equipment 
us137 million security infrastructure us50 million and process 
enhancements us41 million included in total capital expenditure is 
a noncash reclamation adjustment which amounted to us97 million  34
www africanbarrickgoldcom
operating review
no r th ma ra 
laying th e fou nda tion s
pr ogress agains t o ur 2011 pri ori ties
 – c ompletion of feasibility study at g okona underground
 – c ompletion of construction of water treatment plant
 – introduction of the n orth mara c oe xistence plan and establishment 
of s earch for c ommon g round partnership
 – substantial completion of waste stripping programme in the g okona 
and n yabirama pits
 – f urther success in resource definition drilling beneath the g okona 
and n yabirama pits
 – significant progress made on the upgrade of the gold plant circuit  
and detoxification plant
 – progressed critical land acquisitions around the g okona and 
n yabirama pits
2012 pri ori ties
 – c omplete the commissioning of water treatment plant for the 
discharge of the e po
 – f inalise analysis of potential g okona lateral pit extension and 
resulting resequencing of the g okona underground project
 – progress our objectives under the n orth mara c oe xistence plan
 – c omplete licence renewal and permitting process
 – c omplete construction of site safety walls
 – c omplete the upgrades to the gold plant circuit and the  
detoxification plant
 – progress the n yabirama underground project into a feasibility study
ke y mine sta tis tics c o n trib ution to to tal gro up o unces
25
170832oz 051trifr 
51moz
total reserves
and resources
 
y ear ended 31 d ecember
2011 2010  variance
tonnes mined k t 21808 20106 8
o re tonnes mined k t 2254 2624 14
o re milled k t 3070 2860 7
h ead grade gt 21 28 25
mill recovery  806 829 3
o unces produced o z 170832 212947 20
o unces sold o z 170625 218684 22
c ash cost per ounce sold uso z 810 472 72
c ash cost per tonne milled ust 45 36 25
c apital expenditure us’000 123146 91442 35
the statistical information presented includes n onifrs measures  
a n explanation of n onifrs measures is included on page 50 and 51
l ake 
vict ori a
n orth mara overview performance governance financial 
sta temen ts
shareholder 
informa tion
35
ann ual re por t and acco un ts 2011
north mara mine overview
the n orth mara mine consists of three open pit deposits n yabirama 
g okona and n yabigena and development potential at k omarera there 
is also a process plant waste rock dumps a tailings containment pond 
and other associated facilities c urrent capacity of the mill operations is 
approximately 8000 tonnes per day or approximately 3 million tonnes 
per year a s at 31 d ecember 2011 a total of 2329 individuals were 
employed at n orth mara consisting of 1029 g roup employees and 
1300 contracted personnel
the n orth mara gold deposits are situated in the mara musoma 
greenstone belt and there are several types of gold mineralisation 
including shearzonerelated quartz vein and disseminated gold  
n orth mara’s life of mine is estimated to be over ten years based  
on its proven and probable gold reserves of 3485000 ounces
operating performance
the focus for n orth mara in 2011 was a planned and substantial waste 
stripping programme in both the g okona and n yabirama pits in order 
to open up higher grade zones for future years d ue to this a substantial 
portion of mill throughput has come from low grade stockpiles which 
has led to an expected reduction in gold production and an associated 
increase in cash costs per ounce a s a result of the waste stripping the 
total tonnes mined increased by 8 on 2010 and the ore tonnes mined 
decreased by 14 towards the latter part of the year waste stripping 
activities were slowed down due to capacity constraints at the paf waste 
dumps provisional permits have now been granted and construction of 
further paf dumps is underway to alleviate the constraint a s a result 
we expect to complete the bulk of the waste strip programme by mid 
2012 following which we expect to see a substantial improvement in 
head grade
g old production for the year was 170832 ounces down significantly on 
2010 but in line with expectations d ebottlenecking of the mill allowed 
for a 7 increase in throughput which partially offset the expected 
reduction in grade from 28gt in the prior year to 21gt g old ounces 
sold amounted to 170625 ounces for the year in line with production 
and down 22 compared to 2010 reflecting the decline in production 
c ash costs for the year were us810 per ounce sold compared to 
us472 in the prior year period the increase in cost was primarily 
driven by the lower production base higher labour costs due to 
inflationary pressures and an increase in headcount increased energy 
costs as a result of increased backup power usage especially in 
n ovember and d ecember due to the failure of the grid transformer 
resulting in the mine being solely run on diesel power and increased 
contractor services costs c ash costs per tonne milled increased to 
us45 in 2011 from us36 in 2010 mainly as a result of the increased 
cost profile 
c apital expenditure for the year totalled us1231 million 35 higher 
than the us914 million in the prior year k ey capital expenditure 
included capitalised waste stripping mainly relating to the g okona  
and n yabirama pits us264 million expansion of the gold plant 
us213 million capitalised drilling us143 million investment  
in the water treatment plant us84 million tailings storage facility 
expansion us49 million and the upgrade to the crushing circuit 
us21 million included in capital expenditure is a noncash 
reclamation adjustment which amounted to us188 million 
a s reported during the year approximately 1500 intruders many of 
whom were armed stormed the ore stockpile in may this resulted in  
a confrontation between the tanzanian police force and the intruders 
during which a number of intruders and police officers were injured 
police reports state that five intruders were killed w e have made the 
reengagement of the communities surrounding the mine a key 
objective c ore to this is the progression of our c oe xistence plan 
further details on page 57 which aims to solidify community trust  
and credibility by fulfilling all outstanding legacy commitments  
and to develop longerterm sustainability programmes in the region  36
www africanbarrickgoldcom
operating review
tu la w a ka 
c on tinues to ou tper for m
pr ogress agains t o ur 2011 pri ori ties
 – mine life extended twice through to the end of 2012
 – w est pit e xtension delivered first ore to the rom pad in the  
fourth quarter
 – e nhanced site security controls
 – o btained recertification under the international c yanide c ode
2012 pri ori ties
 – d evelop the second access portal to the underground
 – increase current mining rates
 – c ontinue to evaluate additional opportunities to further extend the 
mine life
 – f urther development of surface deposits to ensure sufficient feed  
to run plant at optimal levels
 – c omplete closure plan
c o n trib ution to to tal gro up o unces
9
58871oz 215trifr
193koz
total reserves
and resources
 
y ear ended 31 d ecember
2011 2010  variance
underground ore tonnes hoisted k t 144 103 40
o pen pit ore tonnes mined k t 22 – 100
o pen pit waste tonnes mined k t 497 – 100
o re milled k t 291 340 14
h ead grade gt 66 41 61
mill recovery  951 932 2
o unces produced o z 58871 42094 40
o unces sold o z 58415 44736 31
c ash cost per ounce sold uso z 727 709 3
c ash cost per tonne milled ust 146 93 57
c apital expenditure us’000 100 31652 15513 104
the statistical information presented includes n onifrs measures  
a n explanation of n onifrs measures is included on page 50 and 51
l ake 
vict ori a
t ulawaka
ke y mine sta tis tics 
70 overview performance governance financial 
sta temen ts
shareholder 
informa tion
37
ann ual re por t and acco un ts 2011
t ulawaka mine overview
the mine consists of a completed open pit mine with an underground 
access ramp located at the bottom of the pit waste rock dumps an ore 
stockpile area and crushing plant as well as a processing plant water 
waste disposal and ancillary facilities c urrent operating capacity  
of the mill operations is approximately 1320 tonnes per day a s at  
31 d ecember 2011 a total of 1043 individuals were employed 
comprising 493 g roup employees and 550 contracted personnel
pangea minerals l imited owns and operates the tulawaka mine assets 
h owever all capital and operating costs associated with the tulawaka 
mine and net cash generated by the mine are divided on a 7030 basis 
between abg ’s subsidiary pangea g oldfields inc 70 and mdn 
30 abg ’s joint venture partner for the mine f urther details 
regarding this relationship and the related tulawaka a greement  
are provided on page 96
the tulawaka mine comprises two ore bodies the e ast zone and the 
w est zone the e ast zone is the main gold deposit the w est zone  
is still being explored tulawaka’s life of mine is currently estimated to 
take this operation to the end of 2012 based on its proven and probable 
gold reserves of 64000 ounces
operating performance
tulawaka continued to outperform expectations both in regards to 
production and cash costs and we have been able to extend the mine 
life twice in 2011 through to the end of 2012 d ue to the further life of 
mine extension the mine’s management team has been able to refocus 
on production and has been able to deliver a 40 uplift in ounces on 
2010 at a comparable cash cost w e continue to invest in exploration 
drilling and hope to be in a position later this year to make a 
commitment to further mine life extensions 
the mine’s attributable gold production for the year was 58871 ounces 
compared to the 42094 ounces achieved in 2010 the increased gold 
production level resulted from an increased proportion of the mill feed 
coming from higher grade ore from the underground and less lower 
grade material from the stockpiles than in 2010 in the fourth quarter 
the w est pit e xtension was progressed in order to provide incremental 
mill feed in place of the existing low grade stockpiles to supplement 
production from the underground operation g old ounces sold were 
broadly in line with production and up 31 on 2010 reflecting the 
increased production 
c ash costs for the year were us727 per ounce sold compared to 
us709 in the prior year this cost increase was mainly due to the 
increase in mining activity which resulted in increased headcount 
maintenance and contracted services as well as higher sales related  
costs driven by higher revenue the cost increases were almost totally 
offset by the increased ounces produced and increased capitalised costs 
associated with deferred stripping and underground development 
c ash costs per tonne milled increased to us146 in 2011 from us93  
in 2010 primarily as a result of the higher cost of underground mining 
and a lower mill throughput due to the higher grind index associated 
with higher head grade 
c apital expenditure for the year totalled us317 million compared  
to us155 million for the previous year e xpenditure was focused on 
increased investment to extend the mine life and includes capitalised 
underground development us65 million security infrastructure 
us37 million drilling costs us28 million capitalised open pit 
stripping costs us25 million and additional mining equipment 
included in capital expenditure is a noncash reclamation adjustment 
which amounted to us110 million 38
www africanbarrickgoldcom
exploration and project development
pr og ress acr oss 
th e por tfolio
d uring 2011 us481 million including capitalised exploration expenditure of 
us178 million was spent on exploration and evaluation activities leading to a  
total resource addition of 35moz for us137 per ounce thereby maintaining our 
solid track record of delivering high quality low cost resource ounces
k ey achievements during the year included the declaration of an updated inpit 
resource in excess of 4moz for the tuskerk ilimani deposit at the n yanzaga project 
indicating this deposit has the potential to become abg ’s fifth standalone operation 
in tanzania w e also declared an initial resource at g olden r idge and further 
extended the mine life at tulawaka through to the end of 2012 with the potential  
for further extensions in addition we are able to declare a resource from the 
bulyanhulu tailings which underpins the cil e xpansion project
w e made positive progress on feasibility studies at three key projects g okona 
underground bulyanhulu upper e ast zone and the tulawaka e ast zone 
underground extension and commenced a new feasibility study looking at 
expanding the cil capacity to reprocess the tailings at bulyanhulu f urther to this 
we initiated scoping studies after successful drilling at n yanzaga and n yabirama 
underground and continue to assess the best method to develop the resource at 
g olden r idge in addition to the major development projects we continued to 
advance regional exploration programmes in tanzania
d uring 2011 abg reviewed further opportunities for regional expansion 
throughout a frica w e are continuing to undertake exploration and evaluation work 
in a number of countries assessing the potential for projects that would be accretive 
to our business through enhancing our growth profile strengthening our project 
pipeline and adding strategically important geographic diversification
o verall the positive progression of our exploration projects and efforts throughout 
the year by the e xploration and technical s ervices teams clearly show abg ’s ability 
exploration and project development pipeline
production
target size o pportunity
scoping  feasibility studies advanced exploration  
resource development
t arget delineation grassroots programme
mine site satellite
l ake 
v ictoria 
g oldfields
a frica
wide
1 moz
750 
k oz
500 
k oz
100 
k oz
a fricawide 
ma
k ahama
g okona 
c orridor
buly r eef  
1  2 e ast
buly r eef  
2 w est
n yanzaga 
r egional
masabi 
e xtensions
d ett
n yakafuru  
jv
n yanzaga
g okona 
g ena ug
buly  
upper e ast 
zone
k omarera
g olden 
r idge
tulawaka  
d eeps
buly  
cil
n yabirana  
ug
one of abg’s key focus areas has 
been to invest in exploration to lay 
the foundations for the company’s 
continued growth 
pe ter spora
v ice presiden t e x pl ora tion overview performance governance financial 
sta temen ts
shareholder 
informa tion
39
ann ual re por t and acco un ts 2011
2011 highlights
 – c ontinued successful drilling intercepts at the n yanzaga 
project have resulted in a significant uplift in the 
previously declared mineral resource estimate for the 
t usker deposit the updated inpit resource is in excess 
of 4moz consisting of 348moz at 147gt a u indicated 
and 598k oz at 205gt a u inferred representing a 
fourfold increase in the previously declared resource  
of 313k oz indicated and 650k oz inferred
 – e xploration drilling at tulawaka continued to 
demonstrate the potential to extend the mine life 
beyond 2012
 – a dvanced exploration and resource development 
drilling around the g okona pit at n orth mara has  
the potential to increase the open pit reserve by 
300k oz with an updated resource for the 
underground due in 2012
 – initial resource declared at g olden r idge
 – a dvanced exploration drilling beneath the planned 
final n yabirama open pit has identified high grade 
zones likely to be amenable to mining
 – identified higher grade zones at the large d ett 
prospect system open below 300m vertical depth
2012 priorities
 – c ontinuation of drill programmes at the n yanzaga 
project on the tusker and k ilimani resource areas  
to target further depth and strike extensions to the 
current resource
 – e xpansion of the tulawaka d eeps underground  
drill programmes to further extend the life of mine
 – c omplete infill and expansion resource drilling for 
both the g okona and n yabirama underground 
projects at n orth mara
 – c ontinued testing of regional targets within the wider 
n orth mara region for new standalone deposits
 – f urther testing of additional targets on the  
n yanzaga property
 – c omplete drill programmes and metallurgical test work 
on k omarera project 4km south west of n yabirama
 – c ontinued testing of d ett project to expand higher grade 
zones and scope out size of the mineralised system
 – surface drilling programmes around bulyanhulu for 
open pit opportunities
to recognise both regional and near mine opportunities this is strategically 
important as it supports our existing production platform organic growth  
prospects and medium to longerterm growth
ab g ’s commitment to exploration continues and for 2012 our exploration budget 
remains strong with budgeted total exploration expenditure both expensed and 
capitalised of us35 million
the core objectives under which these funds will be deployed in our exploration  
and development activities are threefold
•	 to continue to drive our strategy of organic growth through near mine exploration 
and resource expansion
•	 to optimise our existing assets through the identification and delineation of high 
quality standalone and satellite deposits and
•	 to progress regional exploration in order to evaluate new opportunities 
throughout a frica through partnerships and acquisitions
organic growth projects 
brownfield projects
n orth mara – g okona u nderground
this project is focused on developing underground resources beneath the planned 
final g okona and n yabigena open pits the objective is to bring high grade 
underground resources into production in order to provide increased flexibility  
to mining operations as well as extending the life of mine at n orth mara
d eep diamond drilling in and around the current g okona underground resource 
area was completed early in 2011 this drill programme was successful at extending 
known higher grade mineralised zones to at least 600 metres below the currently 
planned final open pit depth based on the positive results of the programme  
ab g commenced a significant resource drillout programme in q2 2011 aimed  
at expanding the total underground resource to greater than one million ounces  
by yearend 2011 we had completed 65 holes for approximately 28174 metres  
of reverse circulation and diamond drilling the infill drill programme is 50 
complete and is expected to be finalised by the end of q2 2012 these additional 
drilling results will also be incorporated during the midyear r esource and r eserve 
evaluation which is expected to increase the overall underground potential 40
www africanbarrickgoldcom
exploration and project development continued
the g okona underground feasibility study was successfully completed 
during q4 2011 and was based on the 2010 yearend resource a t the  
same time during the latter part of 2011 we were able to progress land 
acquisitions around the g okona pit and remove a western side road 
constraint this provides the potential to increase the open pit reserve 
ounces by approximately 300k oz through an additional lateral cut back  
of the open pit subject to waste dumping constraints and permitting  
if implemented this would provide additional near term production in 
excess of that anticipated from the underground project it would however 
have the effect of reducing the underground resource by approximately 
150k oz but the potential addition of the lower cost open pit ounces  
is a positive for the overall n orth mara mine should the extended  
g okona open pit cut back prove the more favourable option then the 
underground project feasibility will need to be recalculated so as to provide 
for a revised portal position the successful 201112 drilling programme 
mining design and infrastructure requirements w hile this will lead to 
some delay in accessing underground production with the evaluation 
likely to be concluded by q4 2012 we remain confident that the project  
will continue to be viable and our production profile would be enhanced 
by both the additional open pit ounces as well as the underground project
n orth mara – n yabirama d eeps
the project is aimed at defining underground ounce potential from  
areas previously not able to be drilled from the open pit or during early 
exploration drilling infill drilling is targeting the addition of at least 
700k oz of material into the n yabirama resource base the current reverse 
circulation and diamond core drilling programme is 80 complete with  
86 holes completed for 30181 metres in 2011 and the remainder of the 
programme is anticipated to be completed during early 2012
r esults from the drilling to date have returned intercepts showing 
multiple zones of higher grade mineralisation including some wider 
zones in excess of 10 metres with grades in excess of 5gt gold w e are 
very encouraged by the progress of this programme to date and expect 
to initiate an underground feasibility study during 2012
n orth mara – g okona c orridor
w e are also undertaking significant additional exploration elsewhere 
around the n orth mara mine particularly along the g okona c orridor 
where historically very little effective drilling has been completed 
outside the immediate mine area
f or this reason during 2011 we completed a reverse circulation scout 
drilling programme along this corridor to test for additional gold 
deposits the scout drilling has been successful at identifying favourable 
rock types and alteration similar to those observed at the g okona and 
n yabigena deposits s everal areas of anomalous gold geochemistry have 
been identified warranting more extensive and deeper drilling in order 
to more fully understand the source of the anomalous gold and test  
for satellite or standalone opportunities in 2012 a programme of 
18500 metres of reverse circulation and diamond core drilling has  
been budgeted to test identified gold anomalies
tulawaka e ast z one u nderground e xtension
w e were able to successfully extend the mine life twice at tulawaka in 
2011 through to the end of 2012 and our ongoing drilling programmes 
are focused on extending this further much of the focus in 2011 was on 
the e ast zone underground extensions where we continued to extend 
the known high grade mineralised shoots below 7l evel down to 
12l evel indicating potential to extend the mine life further d rilling  
to date indicates that existing mineralised zones continue to at least  
180 metres below the floor of tulawaka’s nowcompleted open pit
a second portal into the tulawaka e ast zone underground is 
anticipated to commence in early 2012 to further assist with access sites 
for additional resource expansion drilling and increase production  
from gold ore in this part of the underground w e expect to continue 
drill programmes throughout 2012 which will focus on extensions of 
mineralisation below the eastern end of the final open pit in this way 
we will be able to assess the possible significant expansion of our current 
resource base to add further reserves and extend the mine life through 
an exclusively underground operation
tulawaka surface d eposits
in 2011 we also tested the mojamoja and w est zone prospects which  
lie approximately 4 kilometres northwest of the tulawaka plant and 
ab g is looking at the potential to delineate further open pit resources  
to be trucked to the plant the current infill programme is aimed at 
delineating additional resources between the two previously drilled 
areas and was completed in january 2012
g olden r idge
the g olden r idge project represents an opportunity for abg to exploit 
a satellite gold deposit that is potentially amenable to trucking and 
processing at one of abg ’s current operations f easibility work during 
2011 focused on the opportunity to truck the g olden r idge ore to 
buzwagi and whilst generating positive returns the project did not  
pass our internal returns threshold a s a result we are analysing several 
alternatives for developing the resource at the g olden r idge project 
with initial analysis suggesting that utilising the expanded process  
plant at bulyanhulu could be a viable option the feasibility study  
will be reworked during the course of 2012 to establish the viability  
of these options
d uring 2011 abg ’s exploration team also completed a programme of 
infill reverse circulation drilling and metallurgical test work diamond 
drilling e lements of this programme confirmed the width and tenor of 
mineralisation in the main zone and indicated the potential for further 
exploration drilling to target higher grade areas
bulyanhulu u pper e ast z one
the bulyanhulu upper e ast zone is approximately 25 kilometres east  
of the main bulyanhulu shaft and contains approximately 1moz ounces 
of gold at 10gt a u within r eefs 1 and 2 the mineralisation in the 
bulyanhulu upper e ast zone is included in current reserves but it was  overview performance governance financial 
sta temen ts
shareholder 
informa tion
41
ann ual re por t and acco un ts 2011
not scheduled for mining until later in the mine life a feasibility study 
to bring forward the mining of the area has been positively completed 
with work continuing on the geotechnical and metallurgical drill test 
work a test stope to validate the planned mining method will be 
instigated in q3 2012 if this confirms our expectations board  
approval will be sought for the project
bulyanhulu ci l e xpansion
w e expect to complete the feasibility study shortly for the expansion  
of the cil circuit at bulyanhulu in order to reprocess the tailings at  
the mine w e have undertaken drill testing of the tailings dam through 
2011 a s a result of this we are able to declare an indicated resource  
of 8mt at 123gt for 315k oz from the bulyanhulu tailings which 
underpins the project a s well as delivering increased production  
the expansion of the cil circuit will give increased flexibility to the 
development of the mine as we look to increase the overall production 
profile over the coming years
bulyanhulu r eef 1  2 e ast open pit testing
r everse c irculation drilling was carried out along strike to the east  
on both r eef 1 and r eef 2 structures through 2011 s ome significant 
results were attained on both structures which warrant a continuation 
and escalation of the programme in 2012 the targeting of open pit 
resources complements both the proposed bulyanhulu cil e xpansion 
and the proposed upper e ast mining area successful delineation and 
development of open pits in the r eef 1 and 2 e ast area could provide  
a means of ingress and service supply for planned upper e ast 
underground workings
bulyanhulu u nderground r eef 2 d eep c entral
the target area is immediately down dip of high grade r eef 2 r eserves 
though there were delays in the drilling programme approximately 
80k oz inferred have been added to the resource base this area is within 
700 metres of current mine infrastructure which can be accessed  
within two years giving an opportunity to mine shallower ounces
utilising drill sites located deep on the r eef 1 footwall provides an 
opportunity to drill r eef 2 below 3800 mrl  an area which remains 
essentially untested allowing for a large area of ground to be targeted 
for resource and reserve additions targeted r eef 2 reserves can be 
brought into the life of mine plan sooner than the majority of existing 
r eef 1 reserves the bulk of which lie below 3800 mrl 
bulyanhulu n orthe ast poled ipole ip
a n induced polarisation “ip”r esistivity survey was carried out 
approximately 35 kilometres north of bulyanhulu mine infrastructure 
s even ipr esistivity anomalies were identified the largest of which  
has been selected for drill testing in 2012 this target presents an 
opportunity for a shallow potentially open pitable ore source within  
a short distance of the bulyanhulu process plant should drill testing  
be successful
greenfield projects
n yanzaga project
since acquiring 100 of the n yanzaga project in may 2010 abg  
has undertaken an extensive stepout and infill drilling programme  
at both the tusker and k ilimani deposits with the aim of extending 
mineralisation on the northern western and southern domains of the 
project a total of 91537 metres have been drilled at the project since 
may 2010 representing an investment of us217 million this highly 
successful programme has extended the known gold mineralisation and 
delineated additional resources closer to surface and as a result abg 
was able to release an updated inpit resource in excess of 4moz a u 
consisting of 348moz at 147gt a u indicated and 598k oz at 205gt a u 
inferred this represents a fourfold increase on the previously declared 
resource the drilling has also identified the potential for further higher 
grade resource extensions at depth and as a result we are initiating 
preliminary studies to assess the potential for underground mining
f urther exploration has commenced with the objective of defining  
the resources at depth at tusker a t the same time the scoping study  
for the project continues with the current work programme focusing  
on detailed geotechnical and metallurgical drilling and modelling  
across the potential tusker pit area infrastructure tradeoff studies 
environmental and social baseline studies and licensing for the project 
it is estimated that the scoping study will be completed during q2 2012 
a ssuming positive economics from the current desktop level scoping 
study and approval from the board we aim to initiate a prefeasibility 
study during q2 2012
d ett
the d ett prospect lies in the western part of the maramusoma 
g reenstone belt and is located approximately 65 kilometres north  
east of n orth mara gold mine a ny target in this area would be for  
a standalone operation h istoric surface mapping and shallow  
drilling outlined a large 4 kilometres by 2 kilometres zone of alteration 
associated with intercalated intrusions and sediments and limited 
deeper drilling to 200 metres vertical showed a lowgrade 070gt 
gold mineralised system associated with copper and molybdenum 
mineralisation open in all directions including at depth
in 2011 the e xploration team reviewed the historical data across the 
d ett prospect and drilled three widespaced diamond holes to test the 
potential for higher gold grade structures these holes were drilled to 
approximately 300 vertical metres and all holes showed the gold system 
remained open at depth the drilling to date has confirmed abg ’s 
interpretation of the structural controls to mineralisation and further 
review of the 2011 results will be undertaken in planning for future  
drill programmes aimed at further validating and extending the higher 
grade gold zones and investigating the potential of delineating a large  
in excess of 10 – 15gt a u mineable resource 42
www africanbarrickgoldcom
financial review
continued strong 
performan ce
we achieved strong financial 
results over the course of the year 
increased revenue from stable 
production levels combined with a 
higher average realised gold price 
for the full year have had a very 
positive impact on group earnings 
and cash flow
kevin jennings
c hief f inancial o ffi cer
y ear ended 31 d ecember
2011 2010  change
a ttributable gold production o z
1
688278 700934 2
a ttributable gold sold o z
1
699539 724083 3
c ash cost uso z
2
692 569 22
a verage realised gold price uso z
2
1587 1240 28
r evenue us’000 1217915 975021 25
eb itda us’000
2
544091 419167 30
c ash generated from operating activities 
us’000 498323 345141 44
n et profit attributable to owners 
us’000 274895 218103 26
basic earnings per share e ps cents 670 532 26
d ividend per share cents
3
163 53 208
o perating cash flow per share cents
2
1215 842 44
revenue
us’000
us1217915
25 11 10 09 08 07
ebitda
us’000
us544091
30 11 10 09 08 07
the abg g roup achieved strong financial results over the course of the year with an 
increase of 26 in net earnings and earnings per share r ecord gold prices lifted 
revenue and margins during the year despite marginally lower production levels 
positively impacting g roup net profit attributable to owners and ebi tda  this enabled 
us to fund sustaining and expansionary capital expenditure while generating a further 
us183 million in net cash flow to reach a yearend cash position of us584 million 
c ash margins per ounce improved to us895 in 2011 from us671 per ounce in the 
prior period as we were able to capture most of the increase in the gold price despite 
industrywide cost pressures these cost pressures together with a slightly lower sales 
and production base meant that cash costs per ounce sold in 2011 increased from 
us569 to us692 per ounce sold
the key finance initiatives during the year were
•	 a n amicable resolution of indirect tax recoverability through a future tax offset 
settlement with the tra 
•	 e xtension of the us150 million undrawn revolving credit facility for a further  
24 months with evergreen provisions to maintain financial flexibility going into 2012
•	 r ebalancing of working capital requirements focusing on
•	 shortening the bullion and concentrate sales and receipts cycle resulting from  
a factoring arrangement and also leading to a second consecutive year of sales 
exceeding production
•	 increasing investment in critical spares and supplies to address the long logistics 
chain and lead time challenges emerging in the market
•	 f ocus on input cost management specifically around foreign currency oil and 
coproduct revenue hedging
the following review provides a detailed analysis of our consolidated 2011 results and 
the main factors affecting financial performance it should be read in conjunction with 
the financial statements and accompanying notes on pages 116 to 164 which have been 
prepared in accordance with international f inancial r eporting standards ifr s as 
adopted for use in the european union
1  a ttributable production and sold ounces reflects equity ounces which excludes 30 of tulawaka’s 
production and sales base 
2  c ash costs per ounce sold average realised gold price ebi tda and operating cash flow per share  
are nonifr s financial performance measures with no standard meaning under ifr s r efer to  
n onifr s measures on page 50 for the definitions of each measure 
3 includes final recommended dividend to be paid in 2012 overview performance governance financial 
sta temen ts
sh areholder 
informa tion
43
ann ual re por t and acco un ts 2011
market overview
the key external drivers of our financial results are 
commodity prices exchange rates and the price of 
oil their impact in 2011 and our positioning going 
into 2012 are set out below
commodity prices
g old prices have a significant impact on abg ’s operating earnings 
and its ability to generate cash flows in 2011 the price of gold 
reached an alltime high trading in a range of us1308 to 
us1921 per ounce and closing at us1531 per ounce g old 
prices averaged us1572 per ounce a new annual average record 
and a us347 per ounce improvement on the us1225 per ounce 
average in the prior year period
the market price of gold has been 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 a s 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 g old  
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
g old prices also continue to be influenced by negative longterm 
trends in global gold mine production the impact of central  
bank gold purchases and investor interest in owning gold  
in 2011 central banks purchased an estimated 430 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 77 million ounces at the end of the period h istorically  
gold has been viewed as a reliable store of value in times of  
financial uncertainty and inflation and as a de facto global 
currency investor interest in gold as an asset class has increased 
greatly as a result of this
ab g also produces copper as a coproduct that is recognised as 
part of revenue c opper prices traded in a wide range of us308 to 
us460 per pound and averaged us400 per pound c opper’s fall 
during the second half of 2011 occurred mainly due to uncertainty 
regarding the global economic recovery and slightly softer demand 
from emerging markets especially c hina w e expect copper to 
benefit as the us domestic recovery accelerates and the effects of 
the e uropean financial crisis become clearer c opper prices will 
likely also be boosted by a resurgence of a sian demand and by the 
limited availability of scrap metal and lower production levels of 
mines and smelters
800
1000
1200
1400
1600
1800
2000
68
70
72
74
76
78
80
dec nov oct sep aug jul jun may apr mar feb jan
average monthly spot gold prices vs dxy index
usoz
average spot price dxy index 44
www africanbarrickgoldcom
financial review continued
utilising option collar strategies we have put in place floor protection 
on approximately 74 of our expected copper production for 2012 at 
an average floor price of us334 per pound and an average ceiling 
price of us484 per pound
currency exchange rates
a portion of the c ompany’s costs are incurred in currencies other 
than us dollars the exposure relating to other currencies is 
approximately 25 of the c ompany’s total expenditure of which  
the main contributing currencies are the tanzanian shilling and  
the south a frican rand in 2011 the shilling and the rand declined 
significantly against the us dollar as investors shunned riskier assets 
in favour of us dollar denominated investments
using collar option strategies we have put in place ceiling protection 
on approximately 75 and 13 of our expected rand expenditure  
for 2012 and 2013 respectively at average ceiling prices of r 810 and 
r 910 respectively
f uel
d uring 2011 brent crude oil traded between us94 and us123 per 
barrel and averaged us109 per barrel w e consume approximately 
450 thousand barrels of diesel fuel annually across all our mines 
d iesel fuel is refined from crude oil and is therefore subject to  
the same price volatility affecting crude oil prices v olatility 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 50 and 22 of our expected oil 
exposure for 2012 and 2013 respectively the hedges cap our  
oil exposure at us110 per barrel should oil trade between  
us110 – us130 per barrel and us110 and us135 per barrel  
for 2012 and 2013 respectively should the price of oil fall we will 
participate in the lower price to a floor of us85 and us77 per 
barrel for 2012 and 2013 respectively
60
65
70
75
80
85
90
dec nov oct sep aug jul jun may apr mar feb jan
south african rand
rand per us
1450
1500
1550
1600
1650
1700
1750
dec nov oct sep aug jul jun may apr mar feb jan
tanzanian shilling
shillings per us
90
95
100
105
110
115
120
dec nov oct sep aug jul jun may apr mar feb jan
brent crude
brent per us overview performance governance financial 
sta temen ts
sh areholder 
informa tion
45
ann ual re por t and acco un ts 2011
revenue
r evenue for the year of us12179 million was 25 higher than the 
prior year period of us9750 million the year on year attributable 
gold sales volume decreased by 24544 ounces but revenue benefited 
from the higher average realised gold prices the decrease in sales 
ounces was primarily due to the lower production base as well as  
excess concentrate ounces on hand sold in 2010 the average realised 
gold price was us1587 per ounce in 2011 compared to us1240  
per ounce in 2010 g old revenue amounted to us11500 million 
compared to us9213 million in 2010
c oproduct revenue included in total revenue amounted to  
us679 million for the year and increased by 26 from the prior year 
us537 million the increase in the production of goldcopper 
concentrate at buzwagi contributed to the increase in copper sales 
volumes the increased 2011 average realised copper price of us382 
per pound compared to the prior year of us354 per pound further 
drove coproduct revenue
cost of sales
c ost of sales was us7041 million for the year ended 31 d ecember 
2011 representing an increase of 20 from the prior year period of 
us5890 million the key aspects that impacted cost of sales during  
the year were i the higher inflationary environment that increased  
the cost of both international and national labour the higher cost of 
renewing contractor services and significant increases in commodity 
inputs for key operating consumables ii increased fuel usage driven 
by the higher level of open pit mining which also led to additional 
maintenance hours and mine contractor services and iii continuing 
power disruptions leading to higher maintenance costs as a result of 
plant equipment failure due to wear and increased fuel usage to provide 
self generated backup power
r evenue related costs such as royalties third party smelting and refining 
fees increased by us76 million following the rising trend in metal 
prices and concentrate volume d epreciation and amortisation was 
us1341 million for the year representing an increase of 22 from  
the prior year period us1095 million this increase was driven  
by a higher capital investment base employed and depreciated in 2011 
and increased capital spending during 2011
the change in inventories related predominantly to the higher ore 
stockpile valuation as a result of increased mining costs allocated  
to stockpiles specifically at n orth mara and buzwagi
the table below provides a breakdown of cost of sales
us’000
y ear ended 31 d ecember
2011 2010
c ost of sales
d irect mining expenses 531481 437420 
c hange in inventories 21016 9753
d irect mining costs 510465 427667
third party smelting and refining fees 21400 20308
r oyalty expense 38100 31549
d epreciation and amortisation 134149 109515
total 704114 589039
the consolidated direct mining expenses totalled us5315 million  
for the year this represents an increase of 22 from the prior year 
us4374 million the key reasons for the increase can be attributed  
to an overall increase in the operating cost of operations a detailed 
breakdown of direct mining expenses is shown in the table below
us’000
y ear ended 31 d ecember
2011 2010
direct mining expenses
l abour 168781 139594
e nergy and fuel 105201 81381
c onsumables 93646 82841
maintenance 79491 64441
c ontracted services 99414 81873
g eneral administration costs 71614 72272
c apitalised mining costs 86666 84982
t otal direct mining expenses 531481 437420
individual cost components comprised
•	 l abour costs which were 21 higher than 2010 driven by a 16 
increase in headcount together with increased remuneration levels  
in a competitive market for personnel the increase in headcount was 
driven by additional security and management resources at buzwagi 
the labour intensive nature of conventional mining methods used at 
bulyanhulu and the life of mine extension at tulawaka
•	 e nergy and diesel fuel expenses account for all electricity diesel fuel 
and oillubricant expenditures the 29 increase over the year was 
driven by buzwagi and n orth mara due to higher open pit mining 
activities and the use of diesel spinning and backup generated power 
in order to ensure stable and consistent power supply because of the 
difficulties in sourcing from the national power grid the increased 
mining and milling activity at bulyanhulu and greater underground 
activity and production at tulawaka also increased energy costs   46
www africanbarrickgoldcom
financial review continued
the cost per barrel of brent crude oil the key input of diesel rose 
from an average of us86 in 2010 to us109 in 2011 also 
contributing to higher energy costs
•	 c onsumable costs increased 13 mainly due to the increased mining 
activity resulting in greater explosives and tyre consumption together 
with the overall inflationary increases in consumables
•	 maintenance costs rose 23 primarily driven by plant and heavy 
equipment breakdowns at buzwagi in addition tulawaka costs rose 
due to the overhaul of the existing underground mining equipment  
in line with the extension of its life of mine a t n orth mara and 
bulyanhulu increased mining activities resulted in higher 
maintenance costs the inconsistent power supply caused greater 
wear on plant machinery increasing required plant maintenance  
and critical component replacements specifically at buzwagi and 
bulyanhulu a lso n orth mara’s maintenance costs increased during 
the second half of the year due to the transition from a maintenance 
and repairs contractor marc  to an owner maintenance model
•	 c ontracted services increased 21 mainly as a result of i increased 
drilling activity at n orth mara ii the open pit mining for the w est 
pit extension at tulawaka which commenced towards the latter part 
of the year and iii increased marc costs at buzwagi
•	 g eneral and administrative costs decreased 1 as additional security 
costs at buzwagi were offset by decreased warehousing and logistic 
costs 2010 was adversely affected by stock related adjustments
•	 c apitalised direct mining costs were 2 higher and consisted of 
capitalised operating costs to reflect deferred stripping at n orth mara 
buzwagi and to a lesser extent tulawaka as well as underground mine 
development at bulyanhulu and tulawaka
corporate administration
c orporate administration expenses totalled us505 million for the  
year ended 31 d ecember 2011 this equated to a 43 increase from  
the prior year period of us354 million c orporate administration 
comprised the expenses associated with maintaining the d ar es salaam 
johannesburg and l ondon offices c osts include salaries office rent 
consulting legal audit fees and investor relations expenses the increase 
is mainly due to the increased headcount in order to run an effective 
centralisation model and publicly listed company combined with 
inflationary increases compared to 2010 increased costs from the 
l ondon office which was not fully functional until midyear 2010 
continuous improvement costs of us68 million legal costs driven  
by a number of ongoing cases and the tra settlement and increased 
aviation and travel costs
exploration and evaluation costs
e xploration and evaluation costs are incurred to advance the 
exploration at our greenfield projects f or 2011 us303 million was 
incurred 103 higher than the us149 million spent in 2010 and 
reflective of our increased commitment to exploration the key focus 
areas for the year were exploration and step out drilling at n yanzaga  
of us151 million us22 million at g olden r idge to perform 
metallurgical sampling and resource modelling us45 million along 
the corridor surrounding n orth mara and us03 million at tulawaka 
area to test satellite open pit opportunities
w here it is probable that resources at adjacent reserve areas will be 
converted into reserves the expenditure is capitalised d uring 2011  
an amount of us178 million of exploration costs were capitalised 
compared to us122 million in 2010 c apitalised costs predominantly 
relate to the g okona and n yabirama underground drilling projects at 
n orth mara and tulawaka underground drilling
corporate social responsibility expenses
c orporate social responsibility expenses incurred amounted to  
us74 million for the year compared to the prior year of us35 million 
the increase has been driven by site focused projects and larger 
contributions to general community projects funded from the new abg 
d evelopment maendeleo f und which was set up in september 2011
other charges
o ther charges amounted to us156 million for the year 31 down 
from the 2010 amount of us226 million o ther charges comprise 
mostly of foreign exchange gains and losses gains and losses on 
disposals unrealised gains and losses on derivative contracts asset  
write downs and certain provision movements the main contributors 
to the expense were i foreign exchange losses of us60 million 
us79 million in 2010 from the continued devaluation of the 
tanzanian shilling against the us dollar impairing the tzs 
denominated assets on the balance sheet ii disallowed indirect tax 
claims of us71 million as agreed as part of the memorandum of 
settlement with the tra  iii write downs relating to obsolete 
construction inventory at buzwagi of us16 million iv severance 
costs of us16 million v historical construction supplies related write 
downs of us30 million and vi asset write downs of us13 million 
this was offset by abg ’s entry into zero cost collar contracts as part of a 
programme to protect it against copper market volatility which resulted 
in an unrealised marktomarket revaluation gain of us79 million 
compared to a loss of us37 million in the prior year overview performance governance financial 
sta temen ts
sh areholder 
informa tion
47
ann ual re por t and acco un ts 2011
finance expense and income
the finance expense increased to us87 million for the year compared 
to us18 million in 2010 the key drivers were full year finance 
expenses of us46 million relating to the us150 million revolving 
credit facility agreement closed during the fourth quarter of 2010 
increased accretion expenses relating to the discounting of the 
environmental reclamation liability and interest payable on finance 
leases c urrently abg has no external debt
f inance income relates predominantly to interest charged on  
noncurrent receivables and interest received on time deposits
t axation matters
the taxation expense increased to us1179 million for the year 
compared to us865 million in 2010 the 2011 expense consists  
of deferred tax of us791 million and current corporate taxes of 
us388 million incurred in 2011 the higher tax expense was driven  
by increased profits before tax predominantly due to higher revenue 
c orporate taxes include a prior year adjustment of us287 million 
relating to the corporate tax liability agreed per the memorandum of 
settlement with the tra  this was fully offset by a corresponding 
adjustment to deferred tax income the effective tax rate in 2011 
amounted to 29 compared to 30 in 2010
d uring the year we executed a binding memorandum of settlement 
with the tra to address the treatment of certain outstanding indirect 
tax refunds in respect of fuel levies and value added taxation the terms 
of the memorandum of settlement allow abg to offset income tax 
payable against outstanding refunds for v a t and fuel levies this has 
resulted in tulawaka having a us388 million corporate tax liability  
as at 31 d ecember 2011 which is offset against amounts owed to abg  
leaving a net receivable of us801 million as part of the settlement  
a s part of ongoing arrangements an escrow account has been agreed 
with regular reconciliations in order to prevent future fuel tax  
refunds accruing
net profit for the period
a s a result of the factors discussed above net profit for the year ended 
31 d ecember 2011 was us2848 million this represents an increase  
of 28 from the prior year period us2226 million the key driver 
was increased revenue as a result of record gold prices during the year 
slightly offset by lower sales ounces this was partially offset by increases 
in our cost base as well as increased taxation due to the increased profit 
before tax
key financial performance indicators and reconciliations
cash costs
w ith respect to our cash costs for the year we saw a 22 increase over 
2010 to us692 per ounce sold from us569 per ounce sold r efer to 
the operational overview on page 26 and cost of sales explanations as 
part of the financial review detailing the year on year change
the table below provides a reconciliation between cost of sales and total 
cash cost to calculate the cash cost per ounce sold
us’000 except for ounces sold
y ear ended 31 d ecember
2011 2010
t otal cost of sales 704114 589039
d educt d epreciation and amortisation 134149 109515
d educt c oproduct revenue 67890 53719
t otal cash costs 502075 425805
total ounces sold¹ 724574 743256
c ash cost per ounce sold 693 573
e quity ounce adjustment² 1 4
a ttributable cash cost per ounce sold 692 569
1 r eflects 100 of ounces sold
2 r eflects the adjustment for noncontrolling interests at tulawaka
e bitd a
ebi tda for the year ended 31 d ecember 2011 increased by 30 to 
us5441 million compared to the prior year period us4192 million 
as a result of record gold prices supported further by increased 
coproduct revenue this was partly offset by an increase in the direct 
mining cost base predominantly driven by increased direct mining  
costs across all sites as well as increased revenue related costs such as 
royalties smelting refining and transport costs n ote that ebi tda 
includes the impact of other charges totalling us156 million  
a reconciliation between net profit for the period and ebi tda  
is presented below
y ear ended 31 d ecember 
us’000 2011 2010
n et profit for the period 284777 222606
plus income tax expense 117924 86471
plus depreciation and amortisation 134149 109515
plus finance expense 8725 1777
d educt finance income 1484 1202
e bitda 544091 419167 48
www africanbarrickgoldcom
financial review continued
basic earnings per share
e arnings per share for the year ended 31 d ecember 2011 amounted to 
us670 cents an increase of 26 from the prior year period of us532 
cents the increase was driven by higher net profit for the year there 
was no change in the underlying issued shares
cash flow summary
y ear ended 31 d ecember
us’000 2011 2010
c ash flow from operating activities 498323 345141
c ash used in investing activities 281532 275555
c ashused ingenerated by  
financing activities 32682 261978
increase in cash 184109 331564
f oreign exchange difference on cash 967 278
o pening cash balance 401012 69726
c losing cash balance 584154 401012
cash flow from operating activities was us4983 million for the year  
an increase of us1532 million the increase primarily related to 
increased ebi tda partially offset by the increase in working capital 
the working capital movement related to increased investment in 
supplies inventory of us753 million in order to address the availability 
concerns of critical spares and consumable inventory impacted by long 
lead times an increase in ore inventory of us216 million which was 
primarily driven by higher mining costs offset by an increase in trade 
and other payables of us420 million mainly due to timing differences 
in payments and increased capital and supplies cost and a reduction  
in trade receivables us294 million driven by the factoring 
arrangement and finished gold inventory
cash used in investing activities was us2815 million for the year  
an increase of 2 from the prior year of us2756 million total cash 
capital expenditure for the year of us2732 million increased by 39 
from the prior year figure of us1964 million driven by both increased 
sustaining and expansionary capital expenditure
cash used in financing activities for the year ended 31 d ecember 2011  
of us327 million decreased from the prior year cash generated of 
us2620 million the inflow in 2010 was predominantly funded by 
ab g ’s ipo and was further supported by the partial exercise of the 
overallotment option in total the ipo and the overallotment option 
proceeds resulted in us8653 million after deduction of transaction 
costs this was in part offset by the payment of a special dividend and 
the repayment of intergroup loans to other members of barrick g roup 
as part of the preipo r eorganisation the 2010 final dividend and 
interim 2011 dividend totalled us283 million and were paid during 
the year f inance lease instalments amounted to us22 million and 
distributions to noncontrolling interests amounted to us22 million
a breakdown of total capital and other investing capital activities for the 
year end is provided below
y ear ended 31 d ecember
us’000 2011 2010
sustaining capital 125945 102781 
e xpansionary capital 63273 11485 
c apitalised development
3
83990 82177
t otal cash capital 273208 196443
r ehabilitation asset adjustment 52761 27948 
n oncash sustaining capital
4
19266 –
t otal capital expenditure 345235 224391
o ther investing capital
– tusker acquisition
1
 – 72805
– n oncurrent asset movement
2
 8325 6307
1  the tusker acquisition includes the acquisition of the subsidiary net of cash for  
us631 million and the tusker stock options settled for us97 million in total
2  n oncurrent asset movement relates to the investment in the powerline and land 
acquisitions reflected as prepaid operating leases tanzania tanesco government 
receivables village housing project and other items
3   the prior year segment capital expenditure has been restated to separately reflect 
capitalised development
4  total noncash sustaining capital relates to the capital finance lease at buzwagi for  
the backup power generators
sustaining capital
sustaining capital expenditure includes major projects such as 
investment in the hauling fleet at buzwagi us97 million investment 
in continuous improvement systems relating to n orth mara buzwagi 
and bulyanhulu us69 million expansion of the tailings facility  
and waste dumps at n orth mara us65 million ventilation and 
dewatering systems at bulyanhulu us57 million and workshop 
construction at bulyanhulu us20 million
e xpansionary capital
e xpansionary capital expenditure includes major capital projects such  
as the gold plant expansion project at n orth mara us213 million 
capitalised exploration drilling us178 million the water treatment 
plant project at n orth mara us 84 million t ulawaka extension 
us80 million upper e ast expansion at bulyanhulu us54 million 
and n orth mara crusher circuit enhancements us21 million
capitalised development
c apitalised development capital includes capitalised deferred stripping 
for n orth mara us264 million buzwagi us156 million  
and tulawaka us25 million and bulyanhulu and tulawaka 
underground development capitalised of us327 million and  
us65 million respectively overview performance governance financial 
sta temen ts
sh areholder 
informa tion
49
ann ual re por t and acco un ts 2011
n oncash capital
n oncash capital for the year totalled us720 million consisting of 
backup power finance lease assets of us193 million and reclamation 
adjustments of us528 million compared to us279 million in 2010 
the reclamation adjustments were driven by cost estimate increases for 
security contractor fuel rates contractor equipment rates additional 
disturbance caused by the expansion of the mine sites and due to a 
change in discount rate
o ther investing capital
included in total investing activities for 2010 was the acquisition of 
tusker for us631 million net of cash d uring the year n orth mara 
incurred land purchases totalling us76 million
financial position
abg had yearend cash and cash equivalents of us5842 million 
us4010 million in 2010 the g roup’s cash and cash equivalents are 
with counterparties whom the g roup considers to have an appropriate 
credit rating l ocation of credit risk is determined by physical location 
of the bank branch or counterparty the maximum allowable term  
of maturity for any individual security is 12 months investment 
counterparties must have a credit rating of at least baa2 or better by 
moody’s investor services or bbb by standard and poor’s n o more  
than 25 of the aggregate market value of the investment portfolio is 
maintained in any one country with the exception of the united states 
of a merica united k ingdom and barbados or in any one industry 
group investments are held mainly in united states dollars and cash 
and cash equivalents in other foreign currencies are maintained for 
operational requirements
d ebt remained at zero as in 2010 o n 24 n ovember 2010 the g roup 
concluded negotiations with a syndicate of commercial banks led by 
c itibank for the provision of a revolving credit facility in a maximum 
aggregate amount of us150 million the facility has been provided  
to service the general corporate needs of the g roup and to fund 
potential acquisitions a ll provisions contained in the credit facility 
documentation have been negotiated on normal commercial and 
customary terms for such finance arrangements the term of the facility 
has been extended to 2014 and when drawn the spread over libor  
will be 350 basis points a t 31 d ecember 2011 none of the funds were 
drawn under the facility
g oodwill and intangible assets remained in line with 2010
the net book value of property plant and equipment increased from 
us16 billion in 2010 to us18 billion in 2011 the main capital 
expenditure drivers have been explained in the cash flow used in 
investing activities section above and have been offset by depreciation 
charges of us1341 million
total indirect tax receivables net of a discount provision applied to  
the noncurrent portion decreased from us1212 million in 2010 to 
us853 million in 2011 the decrease was mainly due to the impact  
of the memorandum of settlement agreement where the indirect tax 
receivable was used to offset income tax liabilities of us388 million 
relating to tulawaka
the net deferred tax position increased from a net deferred tax  
liability of us149 million in 2010 to a net deferred tax liability of 
us940 million this was driven by the taxable income generated 
during 2011 and the prior year adjustment relating to the tulawaka 
corporate tax position tax losses carried forward have reduced from 
us4286 million to us3845 million and us65 million of deferred 
tax assets were not recognised as at 31 d ecember 2011
n et assets attributable to owners of the parent increased from  
us25 billion to us28 billion at 31 d ecember 2011 the increase 
reflects the current year profit attributable to owners of the parent of 
us2749 million this was offset by the payment of the final 2010 and 
interim 2011 dividend of us283 million to shareholders during 2011
dividend
a n interim dividend of us32 cents per share was paid to shareholders 
on 26 september 2011 the d irectors recommend the payment of a  
final dividend of us131 cents per share subject to the shareholders 
approving this recommendation at the agm 
significant judgements in applying accounting policies and key 
sources of estimation uncertainty
many of the amounts included in the consolidated financial statements 
require management to make judgements 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 but actual results may differ from the amounts included 
in the consolidated financial information included in this annual report 
information about such judgements and estimation is included in the 
accounting policies andor notes to the consolidated financial 
statements and the key areas are summarised below
a reas of judgement and key sources of estimation uncertainty that  
have the most significant effect on the amounts recognised in the 
consolidated financial statements include
•	 e stimates of the quantities of proven and probable gold reserves
•	 the capitalisation of waste stripping costs
•	 the capitalisation of exploration and evaluation expenditures
•	 r eview of goodwill tangible and intangible assets carrying value  
the determination of whether these assets are impaired and the 
measurement of impairment charges or reversals 50
www africanbarrickgoldcom
financial review continued
•	 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
•	 r ecognition of a provision for environmental rehabilitation and the 
estimation of the rehabilitation costs and timing of expenditure
•	 w hether to recognise a liability for loss contingencies and the amount 
of any such provision
•	 w hether to recognise a provision for accounts receivable and the 
impact of discounting the noncurrent element
•	 r ecognition of deferred income tax assets amounts recorded for 
uncertain tax positions the measurement of income tax expense  
and indirect taxes
•	 d etermination 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
•	 d etermination of fair value of derivative instruments and
•	 d etermination of fair value of stock options and cashsettled share 
based payments
going concern statement
the abg g roup’s business activities together with factors likely to  
affect its future development performance and position are set out in 
the o verview and performance sections of this report the financial 
position of the abg g roup its cash flows liquidity position and 
borrowing facilities are described in the preceding paragraphs of this 
financial review
in assessing the abg g roup’s going concern status the d irectors have 
taken into account the above factors including the financial position  
of the abg g roup 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 g roup’s capital expenditure and 
financing plans a fter making appropriate enquiries the d irectors 
consider that abg and the abg g roup 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
nonifrs measures
abg has identified certain measures in this report that are not measures 
defined under ifr s n onifr s financial measures disclosed by 
management are provided as additional information to investors in 
order to provide them with an alternative method for assessing abg ’s 
financial condition and operating results these measures are not in 
accordance with or a substitute for ifr s and may be different from or 
inconsistent with nonifr s financial measures used by other 
companies these measures are explained further below
a verage realised gold price per ounce sold is a nonifr s financial 
measure which excludes from gold revenue
•	 unrealised gains and losses on nonhedge derivative contracts
•	 unrealised mark to market gains and losses on provisional pricing 
from copper and gold sales contracts and
•	 e xport duties
c ash costs per ounce sold is a nonifr s financial measure c ash costs 
include all costs absorbed into inventory as well as royalties byproduct 
credits and production taxes and exclude capitalised production 
stripping costs inventory purchase accounting adjustments unrealised 
gainslosses from nonhedge currency and commodity contracts 
depreciation and amortisation and social development costs c ash  
cost is calculated net of coproduct revenue
the presentation of these statistics in this manner allows abg to 
monitor and manage those factors that impact production costs on a 
monthly basis abg calculates cash costs based on its equity interest  
in production from its mines c ash costs per ounce sold are calculated 
by dividing the aggregate of these costs by gold ounces sold c ash costs  
and cash costs per ounce sold are calculated on a consistent basis for  
the periods presented r efer to page 47 as part of the financial review 
section for a reconciliation of cost of sales to cash costs
e bitda is a nonifr s financial measure abg calculates ebi tda  
as net profit or loss for the period excluding
•	 income tax expense
•	 f inance expense
•	 f inance income
•	 d epreciation and amortisation and
•	 g oodwill impairment charges
eb itda is intended to provide additional information to investors and 
analysts it does not have any standardised meaning prescribed by ifr s 
and should not be considered in isolation or as a substitute for measures 
of performance prepared in accordance with ifr s ebi tda excludes 
the impact of cash costs of financing activities and taxes and the effects 
of changes in operating working capital balances and therefore is not 
necessarily indicative of operating profit or cash flow from operations  
as determined under ifr s o ther companies may calculate ebi tda 
differently r efer to page 47 as part of the financial review section for  
a reconciliation of net profit to ebi tda 
e bit is a nonifr s financial measure and reflects ebi tda adjusted  
for depreciation and amortisation and goodwill impairment charges overview performance governance financial 
sta temen ts
sh areholder 
informa tion
51
ann ual re por t and acco un ts 2011
a mortisation and other cost per ounce sold is a nonifr s financial 
measure a mortisation and other costs include amortisation and 
depreciation expenses and the inventory purchase accounting 
adjustments at abg ’s producing mines abg calculates amortisation 
and other costs based on its equity interest in production from its mines 
a mortisation and other costs per ounce sold is calculated by dividing 
the aggregate of these costs by ounces of gold sold a mortisation and 
other costs per ounce sold are calculated on a consistent basis for the 
periods presented
c ash cost per tonne milled is a nonifr s financial measure c ash costs 
include all costs absorbed into inventory as well as royalties byproduct 
credits and production taxes and exclude capitalised production 
stripping costs inventory purchase accounting adjustments unrealised 
gainslosses from nonhedge currency and commodity contracts 
depreciation and amortisation and social development costs c ash cost 
is calculated net of coproduct revenue abg calculates cash costs based 
on its equity interest in production from its mines c ash costs per tonne 
milled are calculated by dividing the aggregate of these costs by total 
tonnes milled
c ash margin is a nonifr s financial measure the cash margin is the 
average realised gold price per ounce less the cash cost per ounce sold
o perating cash flow per share is a nonifr s financial measure and  
is calculated by dividing net cash generated by operating activities  
by the weighted average number of o rdinary shares in issue
mining statistical information
the following describes certain line items used in the abg g roup’s 
discussion of key performance indicators
•	 o pen pit material mined – measures in tonnes the total amount  
of open pit ore and waste mined
•	 underground ore tonnes hoisted – measures in tonnes the total 
amount of underground ore mined and hoisted
•	 total tonnes mined includes open pit material plus underground  
ore tonnes hoisted
•	 strip ratio – measures the ratio waste to ore for open pit  
material mined
•	 o re milled – measures in tonnes the amount of ore material 
processed through the mill
•	 h ead grade – measures the metal content of mined ore going  
into a mill for processing
•	 milled recovery – measures the proportion of valuable metal 
physically recovered in the processing of ore it is generally stated  
as a percentage of the metal recovered compared to the total metal 
originally present
•	 total production costs – measures the total cost of production and  
is an aggregate of total cash costs as well as production specific 
depreciation and amortisation
•	 d irect cash operating cost per ounce – measures the total direct cash 
cost attributable to producing an ounce it reflects cash costs adjusted 
to exclude royalties and third party smelting and refining fees on an 
ounce basis  52
www africanbarrickgoldcom
corporate responsibility
r e sponsi ble min ing
r esponsible mining is a key component of our business model and its achievement 
is fundamental to the successful realisation of our strategy
in furtherance of this we have established a broad sustainability programme 
supported by specific commitments as regards governance and ethics employment 
practices environmental practices community relations health and safety security 
standards and human rights
o ur community relations environmental health and safety human resources  
and security functions work closely together to ensure that all key components  
of responsible mining are addressed throughout mining and exploration cycles  
and across all of our operations w e also work with a number of international 
organisations including the international c ouncil on mining  metals and the 
w orld bank to help advance our overall sustainability programme and align  
our practices wherever possible with international standards
o ur sustainability focus is influenced by ongoing operational performance reviews 
and the outcomes of our annual risk assessment review to ensure that we prioritise 
areas that are material to our business and operations and report publicly on these 
accordingly o ver the longer term we aim to develop our reporting in line  
with appropriate elements of the g lobal r eporting initiative gri  guidelines
responsible mining means 
conducting our business in a way 
that reflects our commitment to 
excellence to the benefit of all 
stakeholders as a whole
kevin d’so uza 
seni or direc to r   
envir onmen t and comm uni ty rela tion s
our material areas
responsible 
mining
community
relations
environment
health

safety
employees
governance 
 ethics
security 

human 
rights
– stakeholder engagement
– social impacts
– community development
– resettlement
– business ethics
– code of conduct
– corporate governance
– stakeholder  
 engagement
– training  
 development
– emergency 
 preparedness
– incident 
 reporting
– labour 
 practices
– local 
 employment
– employee 
 development
– talent 
 retention
– conservation  protection
– biodiversity
– climate change
– management of hazardous materials
– occupational health  safety
– emergency preparedness
– community wellbeing
– incident reporting overview performance governance financial 
sta temen ts
sh areholder 
informa tion
53
ann ual re por t and acco un ts 2011
highlights from 2011 and our targets for 2012
f ocus
2011 target 2011 k ey a chievements 2012 targets
community 
relations
•	d evote additional resources to 
community relations at exploration  
and development projects
•	e stablishment of the abg d evelopment 
maendeleo f und
•	e stablishment of additional  
n go partnerships
•	introduction of the n orth mara  
c oe xistence plan
•	progression of social  
incident reporting
•	implementation of c ommunity 
r elations management system
•	progression of the n orth mara 
c oe xistence plan
employees
•	c ontinued development of abg  
as an employer of choice
•	c ontinued improvement of  
employee skillsets
•	n egotiation of union recognition 
agreements at bulyanhulu and tulawaka
•	f irst intake of abg apprenticeships 
completed im tt programme
•	f urther development of employee  
benefit packages
•	d evelopment of collective 
bargaining agreements
•	f urther development  
of abg training and 
development programmes
environment
•	c ontinued improvement in  
energy efficiency
•	f urther reduction in carbon  
dioxide emissions
•	positive progress made towards the 
discharge of the e po at n orth mara
•	o btained tulawaka’s recertification  
under the international c yanide c ode 
•	improved reporting of environmental 
incidents and risks across all abg sites
•	successfully complete the 
commissioning of the n orth 
mara w ater treatment plant  
for the discharge of the e po
•	c omplete the permitting process 
for the creation of additional  
paf waste dumps at n orth mara
•	o btain initial certification of 
buzwagi and recertification  
of bulyanhulu under the 
international c yanide 
management c ode 
health and 
safety
•	implementation of an abg health and 
safety plan to emphasise developing 
leadership skills in line management 
and common oh s standards
•	c ontinued development of tanzanian 
employees in the oh s profession
•	d evelopment of c ritical r isk standards
•	implementation of inthinc
•	improvements in total reportable injury 
frequency rate
•	d evelopment of h ealth impact a ssessments
•	a chieve 10 improvement  
in both our lost time injury 
frequency rate and our total 
reportable injury frequency rate
•	c ontinue the implementation  
of c ritical r isk standards
•	c omplete c ommunity  
h ealth impact a ssessments  
at all operations
security and 
human rights
•	a doption of abg security  
management f ramework
•	c ompletion of security system upgrades  
at buzwagi n orth mara and tulawaka
•	progression of v oluntary principles training 
across security team
•	f urther progression of h uman r ights policy 
and procedures
•	o ngoing v oluntary  
principles training for  
tanzanian police f orce
•	f urther upgrades to the g roup 
security management system
f or 2011 reporting purposes material areas include community relations 
employee and contractor relationships environmental performance health 
and safety and security and human rights a s a matter of good practice we 
also report on governance and business ethics
w e monitor and review a number of performance indicators across all 
material areas throughout the year for purposes of analysing performance 
and setting future targets f urther details on 2011 performance and 2012 
targets in each material area are provided in this report abg’s economic contribution
abg has had a presence in a frica for over 10 years and we continue to contribute to the economic growth of 
communities regions and countries to bring sustainable socioeconomic benefits to the places where we work
corporate responsibility continued
o ur direct economic contribution is made up of the economic value  
we add by paying our employees governments suppliers shareholders 
contractors and communities
o ur true economic contribution is far greater once the greater effect  
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
the basis of preparation for the tax data reported in the context of our 
taxation contribution above is outlined on page 184 of this report as  
part of the g lossary of terms 
the table entitled c ountry a nalysis shows the total of all tax payments 
for each of the main countries where abg has operations or projects 
the distribution of taxes paid by the g roup reflects the geographical 
spread of abg ’s business 
and direct economic contribution of 
1 063m
through taxes and government royalties 
dividends suppliers contractors and 
community payments employee 
wages and salaries
in 2011 abg contributed
186m
of taxes borne and collected 
corporate income t ax
1
royalty – government
indirect t axes v at and fuel levies
1
payroll taxes incl social security
other taxes incl wht  stamp duties 
environmental levies
11
us15m
28
us39m
23
us33m
48
us72m
taxation contribution
e graph below shows the total of tax distributions by type
10
us15m
suppliers contractors and communities
available for reinvestment
t axes and government royalties
employees net of tax
dividends
interest and noncontrolling 
shareholders
direct economic contribution
e graph below shows the distribution of revenues generated by our business in 2011 to 
dierent stakeholder groups
59
15
11
12
21
the majority of our taxes are paid in tanzania followed by south a frica 
a lthough abg ’s headquarters are in l ondon 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 a frica a ll of our operating mines are located in tanzania 
c ountry analysis
a ll amounts are 
in thousands of 
us
taxes 
borne
taxes 
collected subtotal
taxes 
refunded
n et 
payments to 
governments
tanzania 130912 44742 175654 40158 135496
south a frica 1397 6397 7794 700 7094
o ther 1012 1302 2314 616 1698
total 133321 52441 185762 41474 144288
1  d uring the year we settled us388 million in corporate income tax through settling 
outstanding indirect tax refunds in respect of fuel and v a t taxes as agreed with tra  
per the memorandum of settlement
54
www africanbarrickgoldcom abg development maendeleo fund
w e established the abg d evelopment 
maendeleo f und during the year as  
part of our commitment to promoting 
sustainable development w e intend to  
make an ongoing annual contribution of 
us10 million to the fund making it the 
largest community development fund of its 
kind in tanzania the fund will be used to 
support all of our community investment 
programmes and has already provided 
support for a number of important 
community and social projects it is 
administered under the guidance of  
ab g ’s newly established c ommunity 
investment c ommittee
investment criteria
investments made by the abg d evelopment maendeleo f und focus on 
community development health education environment water projects skills  
and training programmes w e also intend to provide support to nongovernmental 
organisations with demonstrated capacity to deliver on community development 
initiatives and other forms of philanthropic initiatives such as donations 
sponsorships and partnerships which fall within the overall focus of our investment 
objectives d ue consideration is also given to funding broader development 
initiatives that support tanzania’s national development strategy
g enerally we will give funding priority to programmes that
•	 are developed from participatory community needs assessment and planning
•	 are aligned with village and d istrict development plans
•	 prioritise mitigation of social impacts and risks
•	 include fulfilment of existing social obligations
•	 leverage abg ’s core business and comparative advantage including in relation  
to infrastructure and existing facilities and services
•	 maximise inclusivity and minimise dependency and
•	 balance visible shortterm projects with longerterm development programmes
the launch of the abg d evelopment maendeleo f und highlights the focus that we 
place on community and social development in tanzania and is an important step in 
the development of our community and social strategies which we use to harness 
synergies across our operations
abg’ s community investment committee 
o ur c ommunity investment c ommittee is responsible for setting community 
support and investment priorities and oversees all community investments  
made by the f und its members include abg ’s v ice president of c orporate  
a ffairs abg ’s c ommunity r elations manager – o perations abg ’s h ead of 
c orporate d evelopment and investor r elations abg ’s pr  c ommunications 
manager and the g eneral c ounsel the committee liaises with abg ’s community 
relations team and other appropriate departments whenever necessary for purposes 
of assessing and monitoring our community support and investment commitments
overview performance governance financial 
sta temen ts
sh areholder 
informa tion
55
ann ual re por t and acco un ts 2011 56
www africanbarrickgoldcom
corporate responsibility continued
community relations
o ur approach
w e believe it is critical to establish mutually beneficial relationships  
with the communities in which we operate and to ensure local 
communities have the opportunity to share in the benefits of  
our activities
ab g ’s strategy is to engage with communities governments and  
other stakeholders to earn their support for our operations and build 
effective community programmes w e have adopted specific policies 
and procedures in order to set community relations standards which 
include a grievance management procedure to ensure dialogues  
with host communities and other local stakeholders are managed  
in a transparent and systematic manner across our operations
a ll members of our community relations team have expertise in  
social management
2011 achievements and 2012 targets
w e have made a number of positive developments in our community 
relations programme throughout the year notably with the 
establishment of the abg d evelopment maendeleo f und
w e have also strengthened g roup procedures and controls with the 
adoption of a specific community relations policy and a g roup wide 
community relations standard which sets our expectations and 
prescribed minimum performance requirements for our community 
relations practices
o ur key area of focus for the year has been the progression of 
meaningful dialogue with local stakeholders and the management  
of trespassing and illegal mining activity at n orth mara following the 
site intrusion in may in this regard a number of positive developments  
have been made throughout the year including the progression of a 
c oe xistence plan between the mine and surrounding communities a s 
part of this we have also established a new partnership with search for 
c ommon g round to progress constructive dialogue around the mine
w e aim to further progress this year’s achievements in 2012 with the 
implementation of the following
•	 e stablishing an abg standard and approach for  
stakeholder engagement
•	 c ommence implementation of community relations management 
system in particular the development of community risk assessments 
and social incident reporting
•	 f urther development of the n orth mara c oe xistence plan
community investment
c orporate social responsibility expenses incurred amounted  
to us74 million for the year compared to the prior year of  
us35 million the increase has been driven by site focused projects 
and larger contributions to general community projects funded  
from the new abg d evelopment maendeleo f und
the launch of this fund greatly enhances the available funding for 
community investment and will be used as the primary source of 
funding for all community development and assistance projects going 
forward the fund has already made significant achievements since its 
inception in september 2011 with funding granted for a number of key 
projects during the year
v illage benefit a greements entered into in the n orth mara region form part 
of overall action items which will be provided for as part of the progression 
of the n orth mara c oe xistence plan f unding for these arrangements will 
be provided under the abg d evelopment maendeleo f und
in addition to abg community assistance programmes abg also 
provides donations to c ane ducate a registered charity launched in  
2010 by abg and barrick employees to provide educational support to 
students in communities located around our buzwagi and bulyanhulu 
mines in 2011 c ane ducate raised us47000 funds which was used  
to support a total of 697 students c ane ducate aims to raise funds to 
support a total of 1300 students for 2012
community engagement
w e are committed to inclusive and transparent community engagement 
in order to build and maintain trust with our host communities and to 
ensure that our activities are informed by their perspectives concerns 
coalition for rural resource research and action networks corra
healt hyout h
implementation of corra d rug  
c ontrol programme in the tarime  
district aimed at defining the  
drivers of drug abuse and delivering  
solutions to abate drug abuse
a snapshot of our 
community support  
and investment 
commitments through  
the abg d evelopment 
maendeleo f und overview performance governance financial 
sta temen ts
sh areholder 
informa tion
57
ann ual re por t and acco un ts 2011
and priorities this process involves identifying stakeholders engaging 
in disclosure and consultation processes and operating appropriate and 
effective feedback mechanisms w e maintain an ongoing dialogue with 
individuals community leaders government representatives and 
nongovernmental organisations w e have trained and employed local 
community members to act as liaison officers at bulyanhulu and n orth 
mara dedicated abg community liaison officers at all abg sites and 
created community liaison centres within the communities around 
bulyanhulu and buzwagi to ensure that all community members have 
easy access to information about mine activities w e are currently 
developing plans for a community liaison centre at n orth mara and will 
review the need for a centre at tulawaka as part of mine closure plans
w e use our community grievance management and resolution procedures 
to manage and respond to community concerns d ay to day management 
of this process is conducted at each of our operations by site based 
members of our community relations team in 2011 535 new matters were 
lodged using our grievance procedures the majority of new concerns were 
lodged in respect of land compensation at n orth mara the majority of 
which related to previous compensation paid for land acquisitions prior to 
our acquisition of the mine the n orth mara c oe xistence plan includes 
the resolution of these issues as part of its objectives
breakdown of griev ances lodged in 2011
bulyanhulu 10
buzwagi 10
north mara 507
tulawaka 8
535
o ver the course of the year we developed a social incident reporting 
pilot scheme for purposes of monitoring emerging social issues in our 
surrounding communities the procedure is aimed at introducing 
proactive management and engagement in potential social issues from 
the outset in order to develop community engagement and dialogue 
the scheme was well received such that we intend to develop it across 
all of our operations in 2012
n orth mara coe xistence plan
throughout the year we have improved community dialogue across the 
mara region developing overall communications with village leadership 
religious leaders local contractors and representatives of local government 
a s part of this we have embarked on the process of creating a 
comprehensive plan with community leaders around the n orth mara  
mine with the objective of achieving a harmonious coexistence with the 
surrounding communities the plan is focused on the following objectives 
solidifying community trust and credibility by fulfilling all outstanding 
legacy commitments enhancing investment programmes in order to 
achieve tangible and equitable benefits to all communities developing 
realistic and sustainable alternative livelihoods in the region and 
promoting proactive communication and engagement with stakeholders 
k ey 2011 achievements under this plan include the following
•	 development of s ocial management plan a ll direct and indirect 
legacy social commitments have been identified verified agreed and 
submitted to the relevant government authorities for approval as part of 
an updated site social management plan smp this will be used to help 
monitor and record progress in implementing all agreed commitments 
and to record progress on the completion of all agreed smp obligations
•	 progression of v illage benefit a greements v ba v bia s  
w e have assessed and quantified all obligations under our existing 
village benefit agreements a s a second stage we have formulated 
v illage benefit implementation a greements vbia s to focus on  
the implementation of vba commitments a s at the end of 2011  
we had signed binding agreements with three of the seven villages 
located in proximity to n orth mara and we are close to the signing  
of agreements with the remaining local villages
•	 a ccess to water w e have implemented a three stage water strategy for 
communities based on interim mediumterm and longterm solutions 
for water supply the first phase interim plan has focused on community 
water supply from locally contracted water bowsers to deliver 90000 
litres on a daily basis at no cost to the community the second medium
term plan involves the creation of new well boreholes 10 of which were 
drilled during the year with the intent to provide at least two wells per 
village the third longterm phase involves the detailed assessment 
design and construction of a potential water distribution system from 
the n orth mara w ater t reatment plant a ll of these plans will be 
progressed throughout 2012
human capital
healt he du cation
support of the roll out  
of a national education 
campaign on the effects 
of f emale g enital 
mutilation fgm 
zanzibar disaster  
fund
philant hrop y 
provision of support to  
families affected by the  
zanzibar ferry disaster  
in september 2011 58
www africanbarrickgoldcom
corporate responsibility continued
•	 improvement to road infrastructure through consultation with 
local authorities and other interested parties we have helped to drive 
improvement to existing road infrastructure in the area a s a result of 
discussions construction has now commenced on the new w estern 
road and upgrading of the g okona e astern bypass roads in addition 
local contractors have been hired to rehabilitate village roads in 
k ewanja n yangoto and k erende abg has also provided funds  
to rehabilitate 45 kilometres of the o ld g erman r oad
•	 progression of other livelihoods w e have progressed our 
relationships with local contractors for road construction 
rehabilitation and maintenance dust suppression and waste 
collection in particular we have worked with a local business to 
create a waste collection scheme focused on the employment of 
women from local villages this scheme is one of the few sources  
of employment for women in the area and is helping to promote  
the independence of women as a result
in addition to progressing existing project areas we aim to develop the 
c oe xistence plan in the following key areas in 2012
•	 a rtisanal and small s cale mining w e are looking at opportunities 
to develop an artisanal and small scale mining project to provide  
both immediate and sustainable benefits to artisanal miners within 
the vicinity of the site o ur objective is to identify a low entry project 
concept with definable resources and obligations to meet all 
stakeholder expectations
•	 r esettlement programme w e are developing a r esettlement a ction 
plan for land acquisition compensation and relocation in accordance 
with international standards for resettlement a s part of this we are 
developing a town plan to secure a land footprint for the remaining 
mine life at n orth mara for all future resettlement programmes in 
the area
employees
o ur approach
w e aim to establish abg as the employer of choice w e respect and 
value each of our employees and observe the fundamental tenets  
of human rights safety and nondiscrimination in the workplace  
w e fairly compensate our employees for their contributions and award 
best performance w e provide meaningful feedback to them and offer 
them professional development and training opportunities to develop 
employee potential w e encourage accountability and employee 
involvement in issues affecting the workplace to help improve safety  
and work conditions as well as our efficiency and our business a s  
an employer we are committed to fair employment practices and a 
workplace in which all employees are treated with dignity and respect 
w e do not tolerate or condone any type of discrimination on the basis  
of race gender national origin religion age sexual orientation politics 
or on the basis of any personal characteristic protected by law 
o ur h ead of h uman r esources is responsible for day to day 
management of our employment practices and employee relations  
h e is part of the senior l eadership team
2011 employee achievements and 2012 targets
o ur key focus this year has been on the progression of relationships 
which promote collective employee dialogue and conducting a review  
of compensation and benefit packages across our operations w e have  
also maintained our focus on employee training and development  
k ey achievements include
•	 e xecution of recognition agreements at bulyanhulu and tulawaka
•	 introduction of enhanced cost of living and housing allowances
•	 a pprentice completion of im tt programmes
o ur focus for 2012 will remain on the progression of labour 
consultation and communication processes namely with the 
development of abg collective bargaining agreements and further 
development of our employee development and training programmes
workforce and turnover
w e employed a total of 5379 employees and 3357 contractors in 2011 
compared to 4815 and 3651 respectively in 2010
o ur turnover rate for 2011 was 17 compared to 185 in 2010 a 
satisfactory achievement given the growing level of demand across the 
mining industry in general for skilled personnel turnover rates at each 
of our operations were largely comparable to 2010 save for the decrease 
at n orth mara and the increase in turnover at tulawaka 
  f urt h e r in f o r m a t i o n 
regarding the abg 
d evelopment maendeleo 
f und and the c ommunity 
investment c ommittee is 
provided on our website 
wwwafricanbarrickgoldcom
comprehensive community based 
rehabilitation hospital in t anzania ccbrt
healt h
f undraising for a maternity  
wing in a hospital that  
provides health services to  
the disadvantaged overview performance governance financial 
sta temen ts
sh areholder 
informa tion
59
ann ual re por t and acco un ts 2011
w e are closely monitoring our ability to recruit and retain qualified 
personnel given the increasing demand for technical skillsets across our 
industry o ur focus is to remain competitive from a compensation and 
development perspective in order to promote employee retention
group wide turnover
bulyanhulu 143
buzwagi 196
north mara 133
tulawaka 276
17
2011
185
2010
w e place a premium on diversity in the work place and this is reflected 
in the makeup of our workforce w hile internationals are often 
necessary for the design and construction phase of a mine’s 
development we actively favour national employment and wherever 
possible we seek to reduce international employment levels over the 
productive life of our mines w e have an ongoing commitment to the 
localisation of our workforce and aim to maintain national employment 
levels at at least 90 of our overall employee base this is largely 
reflected in the overall composition of our g roup workforce in 2011  
and the composition of our workforce at individual operations
localisation of workforce
bulyanhulu 93
buzwagi 87
north mara 84
tulawaka 85
89
2011
90
2010
d evelopment and training
w e ensure that appropriate training and development programmes are 
established and maintained to support and develop our employees in 
accordance with functional and mine site requirements n ew employees 
receive an overview of abg policy through an orientation process within  
a reasonable amount of time following the commencement of their 
employment w e aim to complete an annual review of core c ompany 
policies with all abg employees the structure of our organisation 
encourages sites to transfer employees to valueadded roles when 
appropriate w e also promote wider internal transfers as a means of 
broadening employees’ experience and their value to our organisation
a s of 31 d ecember 2011 56 of our employees had participated in 
technical training courses compared to 50 in 2010 technical training 
covers mining process plant maintenance geology and metallurgy 
training and is based on employee specific roles and site functions
in addition to internal training programmes out of 147 abg sponsored 
apprentices 19 completed the integrated mining technical training 
im tt programme during the year w e have developed the im tt 
programme in collaboration with a nglog old a shanti the tanzanian 
c hamber of minerals and e nergy tcme  and the v ocational 
e ducation and training a uthority d irectorate the programme is a 
vocational scholarship which has been developed to help promote and 
progress technical training for the mining sector in tanzania
in addition to building technical skills we also place great emphasis on 
developing leaders in business d uring the year 84 of our employees 
participated in our supervisory d evelopment programme 12 employees 
enrolled in our intermediate management d evelopment programme and 
five employees enrolled in our management d evelopment programme
the management d evelopment programme and intermediate 
management d evelopment programme are run by the university of c ape 
t own both aim to equip managers with essential business knowledge and 
basic management and leadership skills to further career development 
opportunities the supervisory l eadership d evelopment programme 
helps potential supervisors acquire the skills necessary to manage others
a s regards career development systems we are in the process of developing 
a l earning management system at our operations to support our training 
and development function which will assist all employees in tracking and 
monitoring their respective training and development histories and plans 
the implementation of the system commenced in early 2012 and should 
be operational across all sites by the end of 2012
t anzania breast  
cancer foundation
healt h
sponsorship for a charity  
who are raising funds to  
promote awareness of  
breast cancer
zinduka
healt hedu cation
e stablishment of youth 
clubs in secondary 
schools for malaria 
prevention sensitisation 
and awareness 60
www africanbarrickgoldcom
corporate responsibility continued
e mployee compensation and benefits
w e aim to provide our employees with competitive compensation and 
benefit packages in line with our industry and peer group a s part of 
employee benefit reviews conducted during the year we introduced  
an increase of 7 to cost of living allowances for all national employees 
to help offset the impact of local increases in inflation and volatility  
in the valuation of the tanzanian shilling in the context of global 
currencies w e also harmonised housing allowances for all national 
employees to 15 of base salary
a s part of ongoing benefit reviews we introduced new medical 
insurance plans during the course of the year and are reviewing life 
insurance arrangements for improved alignment with the needs and 
requirements of our employees
w e continuously monitor our benefit schemes to ensure that they 
remain appropriate for employee needs across our employee base
industrial relations
w e respect the rights of employees to freedom of association and collective 
bargaining this includes the right of our employees to join trade unions or 
other labour associations w e work closely with relevant labour groups to 
develop and manage effective labour relations programmes
o verall approximately 48 of our national employees were members  
of unions in 2011 trade union membership of our national workforce 
in 2011 at each of our operations ranged from 62 at tulawaka to 38 
at n orth mara at various points throughout the year we have seen a 
general increase in union membership at our operations particularly  
as a result of membership of the tanzanian mining and c onstruction 
w orkers’ union “tami co ” primarily as a result of the unionisation 
movement which is occurring throughout tanzania w e recognise the 
importance that trade unions play within our stakeholders and we  
are in the process of further developing our labour consultation and 
communication processes initiatives in 2011 included the introduction 
of workers forums capacity building in terms of labour legislation and 
business ethics and regular meetings between management and union 
representatives w e also concluded recognition agreements with 
tami co at bulyanhulu and tulawaka during the year in accordance 
with applicable legal recognition requirements in 2012 we will look to 
develop a collective bargaining agreement at bulyanhulu as part of 
developments in our relationship with employee unions 
d uring the year the c ommission for mediation and a rbitration dismissed 
claims relating to unfair dismissal brought against the bulyanhulu mine  
by former employees who were involved in an illegal labour strike at this 
operation in 2007 this decision is currently under appeal
n o new material industrial relations actions were commenced  
during 2011
union membership
bulyanhulu 57
buzwagi 42
north mara 38
tulawaka 62
48
2010 46
environment
o ur approach
w e conduct our business in accordance with recognised industry standards 
and applicable environmental laws and regulations in furtherance of this 
we have adopted specific environmental standards and incident reporting 
requirements abg ’ s e nvironmental d irector is accountable for day to day 
management of abg ’ s environmental practices and is required to work in 
close collaboration with abg ’ s mine site managers project managers and 
other members of abg ’ s management team to ensure our standards are 
maintained abg ’ s e nvironmental d irector reports directly to abg ’ s 
senior d irector e nvironment and c ommunity r elations
e nergy water greenhouse gases biodiversity and land are the main 
environmental areas affected by our operations w e use a number  
of metrics to measure our environmental impact across these areas  
a s part of overall environmental controls we also monitor our 
management processes for handling and disposing of waste and 
hazardous materials used at our operations
  f urt h e r in f o r m a t i o n 
regarding the abg 
d evelopment maendeleo 
f und and the c ommunity 
investment c ommittee is 
provided on our website 
wwwafricanbarrickgoldcom
nyamongo –  
court house
communit y
building of c ourt h ouse  
and living quarters to  
assist in provision of law  
and order in the mara region overview performance governance financial 
sta temen ts
sh areholder 
informa tion
61
ann ual re por t and acco un ts 2011
2011 environmental achievements and 2012 targets
in 2011 we have seen a general improvement in our overall environmental 
performance primarily as a result of improved environmental controls  
and reporting procedures k ey achievements this year include
•	 the positive progress made towards the discharge of the e po at  
n orth mara
•	 tulawaka’s recertification under the international c yanide 
management c ode international c yanide c ode 
•	 improved use of our environmental management systems 
•	 improved reporting of environmental incidents and risks across  
all abg sites and
•	 positive progress made with permit applications and  
permitting processes 
d uring the year we increased our available resources in order to 
progress the implementation of our environmental management system 
and to promote uniform application of environmental management 
practices across our operations a s part of this process we conducted a 
review of social and legal obligations registers at all of our operations in 
order to develop environmental compliance action plans at each of our 
sites the roll out of these actions plans will continue into 2012
k ey targets for 2012 include the following
•	 successful completion of the commissioning of the n orth mara  
w ater treatment plan required for the discharge of the e po 
•	 completion of the permitting process for the creation of further  
paf waste dumps at n orth mara
•	 completion of buzwagi’s initial certification and bulyanhulu’s 
recertification under the international c yanide c ode
•	 reducing abg ’s overall fresh water usage by 3 and
•	 continuing the implementation of our environmental  
management system
biodiversity and land management
w e manage 15531 hectares of land that we either own or lease 
including surface rights and mineral rights o f this land less than 
166 has been disturbed for mining activities o f the disturbed area 
827 hectares have been reclaimed to agreed postmining uses 
r eclamation occurs throughout the mine life w e revised closure plans 
and related cost estimates for each of our operations over the course of 
2011 these plans have been submitted to the tanzanian regulators for 
review as part of the overall approval processes c onsultation with 
wider stakeholder groups will commence in 2012 as part of our overall 
longterm closure planning process
w e are in the process of developing various processes to assess the 
impact that our operations may have on biodiversity which should 
allow us to report in accordance with gri standards going forward
e nergy use
the largest consumption of energy within our operations is represented 
by diesel use which is used for mobile fleet operations and electricity 
generation on site w e examine opportunities to reduce reliance on 
diesel generated power wherever possible and notably through 
connection to the tane sco power system h owever our ability to 
reduce our reliance on diesel generated power in 2011 was greatly 
hindered by interruptions and stoppages in electricity and power supply 
across tanzania generally w e will continue to monitor this issue closely 
and the overall impact that this may have on our energy consumption 
and energy profile
w e use our fuel management systems to monitor our energy 
consumption e lectricity consumption is measured using power 
metering at each of our operations o verall diesel usage for 2011 
equalled 71 of our total energy profile compared to 68 in 2010 
primarily as a result of the increased use in diesel generated power at 
our mine sites caused by the interruptions to electricity power supply 
throughout the year purchased electricity totalled 28 compared  
to 32 in 2010 again primarily as a result of overall reductions to 
electricity supply across tanzania o ur use of explosives propane  
petrol and other fuels remained largely equivalent to the amounts  
used in 2010
o ver the course of 2011 we implemented a number of energy conservation 
improvements across our organisation to improve overall control and 
management in 2012 we aim to improve our power consumption controls 
at bulyanhulu with the implementation of a plant efficiency programme  
to improve controls in plant energy use a t buzwagi we aim to install 
capacitors to improve overall connections between this operation and the 
aggy classic  
entertainment
spo rtsculture 
support of a sports gala 
in the mara region to 
promote community 
engagement
sungu sungu hospital 
upgrade
healt h
r ehabilitation and 
upgrade of district 
hospital in the  
mara region 62
www africanbarrickgoldcom
corporate responsibility continued
n ational g rid in order to improve the consistency and efficiency of energy 
supply this should improve overall power factors within the operation ’ s 
electricity usage thereby improving energy efficiency
megajoules of energy used per tonne of ore processed
505 457
2011 2010
bulyanhula 780
buzwagi 399
north mara 421
tulawaka 1185
water
w e use water mainly for ore processing dust suppression and rock 
blasting w e obtain our water from both surface and ground water 
sources e ach of our operations face water challenges largely as a result 
of either a surplus or lack of rainfall in the regional areas in which they 
are located issues in water supply can impact our production and 
operations in a variety of ways due to the important role that this  
plays in overall mining and processing procedures
ab g had a total volume of approximately 71 million cubic metres  
of water in circulation during 2011 to maintain this volume for 
production requirements a total of 43 million cubic metres of makeup 
water was imported compared to 51 million cubic metres in 2010 the 
decrease is primarily due to the reduction in tonnes milled at buzwagi 
during the reporting period as well as the use of increased water 
efficiencies at n orth mara o ur water consumption for 2011 is divided 
into 04 million cubic metres sourced from ground water and 33 
million cubic metres from surface water with an additional 06 million 
cubic metres purchased from commercial sources
total w ater used
in litres used per tonne of ore produced
bulyanhulu 844
buzwagi 557
north mara 456
tulawaka 777
568 650
2011 2010
w ater usage at each of our operations is dependent on a variety of factors 
including ore characteristics design of the operation ’ s process plant 
reagent usage which in turn is dependent on the mining technique used 
and differences in overall processing and throughput capacities
w e aim to recycle water as much as possible through our process 
facilities and also seek to improve water consumption by the use of 
other water management processes including rainwater harvesting 
methods which is currently used as a key water management tool at our 
buzwagi operation in this regard of the total amount of water used in 
2011 28 million cubic metres represents recycled water g oing forward 
and over the longer term we aim to reduce overall g roup use of fresh 
water by 3
w e strive to improve efficiencies in our overall water management and 
conservation systems a ll of our operations use programmes to monitor 
water supply storage use and discharge d uring 2011 we improved data 
management systems developed hydrogeological models for three of 
our operations and upgraded water balance predictions at all of our 
operations in 2012 we plan to implement a water conservation standard 
across all of our operations and increase overall water management 
training to further enhance our water conservation procedures
w e have also made significant progress in addressing outstanding issues 
relating to the discharge of the e po at n orth mara the tanzanian 
n ational e nvironmental c ouncil nemc  has recently confirmed  
our compliance with all requirements under the e po  further to the 
construction of the water treatment plant c ommissioning of the  
plant in accordance with tanzanian requirements is now underway  
mwendakulima  
dispensary
healt h
a n initiative to assist with the 
health situation around buzwagi 
particularly hiv aid s  
malaria and child illnesses
chapulwa school repair  
development project
e du cation
to assist with educational  
facilities at local primary  
school where two buildings  
have been condemned overview performance governance financial 
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sh areholder 
informa tion
63
ann ual re por t and acco un ts 2011
w e expect this exercise to be completed during the first half of 2012 
following which we expect the e po to be lifted
g hg emissions
w e recognise that the mining industry is an energy intensive sector  
and the related effects that energy consumption has on greenhouse  
gas ghg  emissions and in turn climate change a s part of energy 
conservation efforts we pay particular attention to the tracking of  
gh g emissions w e also seek to identify ways in which we can improve 
our energy efficiency or use alternative energy sources
o ur total ghg emissions for 2011 equalled 290400 metric tonnes of 
which 92000 metric tonnes represented indirect emissions and 198400 
metric tonnes represented direct emissions a ll of our indirect emissions 
are associated with electrical power supply from the n ational g rid
o verall our ghg emissions in 2011 increased by 54 when compared 
to that of 2010 primarily as a result of our increased mining activity  
and increased reliance on diesel generated power to address electricity 
supply interruptions w e will continue to work with tane sco  the 
tanzanian n ational power utility to progress the provision of stable 
electricity supply in tanzania which should help to reduce our ghg 
emission levels w e will also seek to manage the use of diesel fuel at our 
operations to the extent practicable pending resolution of overall issues 
in power supply w e will look to establish longerterm targets for the 
reduction of ghg emissions in 2012 in the context of overall power 
supply considerations
hazardous materials
w e have adopted a number of processes to mitigate environmental  
risks associated with the use transportation and disposal of hazardous 
materials at our operations particularly cyanide a s regards cyanide 
management our core focus is to comply with the requirements of the 
international c yanide c ode this code encompasses all areas of cyanide 
management and is generally recognised as setting best practice 
standards within the gold mining industry
bulyanhulu and n orth mara were originally certified as compliant 
under the international c yanide c ode in 2009 tulawaka obtained 
original certification in 2008 c ompliance recertification must be 
obtained every three years bulyanhulu and n orth mara are currently 
categorised as being in ‘full’ compliance with the code e ach will 
undergo a recertification process in 2012 tulawaka is categorised  
as being ‘in substantial’ compliance with the international c yanide 
c ode following completion of its recertification in 2011 buzwagi  
has yet to receive its initial compliance certification however the 
application process for its certification is underway a t present 
buzwagi’s compliance certification is subject to the successful 
completion of the upgrade of its detoxification plant w e expect to 
complete the upgrade of this plant in 2012 and we aim to complete 
buzwagi’s certification process in conjunction with this
the storage of tailings may present additional risks to the environment 
property and individuals in the event of a leakage or failure of g roup 
tailings dams a s part of overall environmental risk assessments  
our tailings facilities are subject to specific risk assessments and  
are independently audited on an annual basis a ll of our tailings 
facilities passed the 2011 audit process without material issues
upgrades to the current tailing storage arrangements at bulyanhulu are 
being assessed in the context of the bulyanhulu cil e xpansion project 
e nvironmental assessments and permitting processes to support this 
project were commenced in 2011 and will continue into 2012
f rom a permitting perspective we are currently seeking regulatory 
approvals for additional paf waste rock dumps at n orth mara to 
accommodate future mining activities f or the time being we have 
obtained provisional permits which provide for the construction of 
certain waste rock dumps at an extension to our existing paf dumps 
these dumps will provide support for n orth mara’s waste stripping 
schedule in the interim period
governance and business ethics
the abg business management f ramework sets out the core standards 
and practices for the way we work in addition to this our c ode of 
c onduct embodies our commitment to conducting our business in 
accordance with all applicable laws rules regulations and the highest 
ethical standards w e have also adopted specific policies in the areas of 
bribery corruption and fraud to underline our position on unacceptable 
and illegal actions together with our c ode of c onduct these make  
up abg ’s business e thics policies and are used to safeguard our core 
ethical standards during the day to day performance of our operations 
and business functions w e use specific incident reporting procedures  
to ensure that all alleged or suspected violations of our business ethics 
are reported these include the use of our compliance hotline which  
is available to all employees on a global basis a ll members of senior 
management are also required to complete training on our c ode of 
c onduct and to certify their compliance as part of annual business 
ethics assessments
in 2011 the majority of reports submitted in connection with our c ode 
of c onduct related to employee matters at our operations n one of the 
reports made are expected to have a significant effect on abg 
a n overview of our core corporate governance practices procedures 
and performance for 2011 is provided as part of our corporate 
governance report on page 81
health  safety
o ur approach
the health and safety of our workforce is a critical component of our 
culture w e have a comprehensive health safety and risk management  64
www africanbarrickgoldcom
corporate responsibility continued
system for our underground and surface mining operations w e also 
require all contractors to provide and maintain a safe and healthy work 
environment and ask that they meet at a minimum our health and safety 
standards o ur vision is to ensure that every abg employee and contractor 
goes home safe and healthy every day and we are committed to keeping 
health and safety as a value that drives our overall performance
ab g ’s d irector of h ealth and safety is responsible for day to day 
management of abg ’s health and safety practices and works in close 
collaboration with abg ’s mine site managers project managers and 
other members of abg ’s management team to ensure our standards  
are maintained abg ’s d irector of h ealth  safety reports directly  
to abg ’s c hief o perating o fficer
w ork related injuries and fatalities driving incidents and occupational 
illnesses are key focuses of our health and safety programmes and are 
monitored on an ongoing basis for purposes of evaluating our health 
and safety performance
2011 health and s afety achievements and 2012 targets
o ur h ealth and safety plan was refreshed during the year to focus on 
three core areas staffing visible felt leadership and enhanced critical 
risk standards across all of our operations the critical risk standards 
focus on the promotion of best practice health and safety standards as 
regards ground control hazardous energy isolation working at heights 
cranes and rigging and mobile equipment and driving a total of 15 
c ritical r isk standards will be implemented across abg operations  
by the end of 2013 w e have adopted a new departmental organisation 
structure to support the implementation of this initiative this  
included the creation of an occupational h ealth and safety project 
superintendent at each operation to supervise the implementation  
of the critical risk standards g oing forward we aim to develop the 
critical risk standards so as to include other key operational areas
c apacity building within the h ealth and safety function has been a  
core focus this year and we have seen a number of promotions within 
our existing employee base increasing the overall skill set of our team 
w e view investment in our existing team as essential to our longterm 
health and safety effort
w e have also progressed our health and safety management training with 
the introduction of our ‘v isible f elt l eadership training’ initiative the 
‘v isible f elt l eadership’ programme includes training to understand the 
basic laws of human behaviour organisational dynamics organisational 
culture and how a leader can productively and effectively influence 
employee values beliefs and behaviours to improve health and safety 
performance it teaches leaders how to have highly focused and positive 
interactions with employees in their work areas t o support this training 
targets for minimum interaction have been set for every level of 
management for 2012 onwards a ll targets will be measured and  
assessed as a leading performance indicator for health and safety
2012 v isible f elt l eadership targets 
g eneral managers 2 per week
managers and superintendents 3 per week
1st  2nd line supervisors 2 per shift
safety professionals 5 per week
v isiting senior management every site visit
in addition to the ‘v isible f elt l eadership’  during 2012 we intend to 
continue the focus on c ritical r isk standards building capacity in  
our oh s team and improving our governance regarding the timely 
completion of action items associated with audits and incidents to  
help correct identified deficiencies and prevent recurring incidents 
a nother key area will be continuing to work with our security 
d epartment to reduce the number of injuries sustained in association 
with intruder incidents
incidents in the work place
w e measure progress towards our health and safety goal of ensuring 
that every employee goes home safe and healthy every day by 
monitoring lost time injury frequency rate l tifr  and total reportable 
injury frequency rate trifr  both of these indicators are industry 
standards used to bench mark health and safety performance within the 
mining industry l tifr focuses on employee and contractor injuries  
in the workplace that result in days lost from work whereas the wider 
trifr category tracks all employee and contractor reported workplace 
injuries including lost time restricted duty and those requiring medical 
treatment together these indicators track the number of overall 
reportable injuries within our operating environment f or 2011  
ab g ’s aggregate l tifr was 01 a 10 increase on 2010 h owever  
our trifr was 12 for the year a 14 improvement on 2010
w e aim to achieve 10 improvement in both l tifr and trifr  
in 2012
mine l tifr

trifr

h ours worked
bulyanhulu 007 141 9104033 
buzwagi 007 143 5466739 
n orth mara 008 051 7388907 
tulawaka 020 215 2981029 
e xploration 039 118 1016520 
ab g c orporate o ffices 0 0 657774
ab g 010 120 26615002 
  l tifr is calculated as the number of lost time injuries multiplied by 200000 then divided 
by the total number of hours worked at each abg operation and in aggregate at abg  
  trifr is calculated as the number of total reportable injuries multiplied by 200000 then 
divided by the total number of hours worked at each abg operation and in aggregate  
at abg   overview performance governance financial 
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sh areholder 
informa tion
65
ann ual re por t and acco un ts 2011
r egrettably we suffered one work related fatality as a result of a rock fall 
incident at bulyanhulu mining activities were immediately suspended to 
allow the mine rescue team to commence the rescue and recovery mission 
but unfortunately rescue attempts were unsuccessful g eotechnical experts 
thoroughly investigated this incident g round support systems were also 
reviewed and assessed to ensure they provide a safe working environment 
and employees were retrained in the installation of these systems r egular 
inspections are made to ensure that the correct ground support system is 
both used and installed properly
a s part of health and safety training initiatives members of abg ’s mine 
rescue teams participated in the barrick g lobal mine r escue summit 
during the year e vents included surface and underground mine rescue 
procedures fire fighting first aid team and equipment function as well 
as technical skills such as high angle rope rescue in turn participating 
employees have held followup training sessions with wider abg team 
members to further enhance our emergency training programmes
d riving safety programmes
t o support existing safety initiatives 2011 saw the roll out of inthinc 
technology across our mobile equipment and light fleet vehicles inthinc is 
an electronic incab coaching device that monitors and measures real time 
seat belt use speeding and aggressive driving behaviours this significant 
investment in leading edge technology represents our belief that the 
application of technology as an engineering control can have a favourable 
impact on behaviour for improvements in health and safety performance
in 2012 we will look to further enhance our driving safety initiatives in 
three ways f irstly we intend to participate in a barrick global driving 
safety study group focused on defining ways to reduce driving related 
incidents secondly we will continue the process of refreshing 
improving and implementing our d riving c ritical r isk standard in 
collaboration with these initiatives we will also continue to work with 
our local communities and government to improve awareness traffic 
controls and safe driving behaviours which benefit wider stakeholders 
within our operating environment
o ccupational health and illnesses
h ealth risk assessments form a key part of our health and safety 
management system and we are continuously seeking to identify 
hazards to evaluate exposure potential to control and manage health 
risks and to monitor healthrelated incidents the operational aspects 
of the programme comprise health surveillance training and 
competence medical care and management record keeping and 
reporting health promotion employee assistance programmes  
mine life cycle planning and community health
prior to 2011 abg did not have a robust system for the diagnosis and 
documentation of occupational illness d uring the year we developed  
a procedure to guide the process of diagnosis notification and 
investigation of occupational illnesses g oing forward we expect to 
collect comprehensive data of such illnesses which should allow us to 
monitor progress in this area w e are in the process of implementing 
ab g health standards which are designed to prevent industrial 
illnesses these standards will address illnesses such as occupational 
respiratory disease noise exposures musculoskeletal risks ergonomics 
and fatigue the development of abg health standards will progress 
throughout 2012 in addition all abg operations will be required to 
review their health risk assessments in 2012 and subsequently update 
their monitoring and surveillance programmes as part of overall plans 
to progress our procedures for the mitigation of work related illnesses
a s part of wider employee health programmes we have also 
implemented hiv aid s awareness and prevention programmes as 
well as tuberculosis and malaria programmes for our employees and 
their families and the local communities at all abg ’s operating mines 
these programmes are conducted through mine site clinics which also 
provide voluntary counselling and testing for all employees and their 
families and followup care and treatment for hiv positive employees
community health impact a ssessments hia s
hi a s are a combination of procedures methods and tools that 
systematically judge the potential and sometimes unintended effects  
of a project on the health of a population and the distribution of those 
effects within the population they generate information on the 
potential negative health impacts of mining to help identify mitigation 
measures and further accentuate positive impacts in a sustainable and 
replicable manner they are recognised as an essential part of overall 
community impact assessments by the w orld bank and a number of 
multilateral and bilateral donors and d evelopment ngo s
ab g commenced a work stream of hia s in 2009 at all operations and 
development projects to assess potential impacts on public health for 
purposes of formulating community health programmes w e have retained 
an internationally renowned h ealth c onsultancy f irm to help drive this 
process the objective is to create c ommunity h ealth management plans 
chm ps for each of our sites a t present initial studies have been 
completed at buzwagi and t ulawaka which should allow for the creation 
of chm ps in the first quarter of 2012 the process for production of hia s 
at n orth mara and bulyanhulu will commence in 2012 and run 
throughout the year
implementation of hia s    
mine status target
bulyanhulu o utstanding c ommencement 2012
buzwagi o ngoing c ompletion 2012
n orth mara o utstanding c ommencement 2012
tulawaka o ngoing c ompletion 2012 66
www africanbarrickgoldcom
corporate responsibility continued
security and human rights
o ur approach
w e believe that effective security controls standards policies and 
procedures contribute to the safety and protection of our employees  
assets and reputation as well as the communities in which we operate 
c entral to this are the v oluntary principles on security and h uman 
r ights the “v oluntary principles” o ur majority shareholder barrick 
is a signatory participant to the v oluntary principles and abg is 
committed to alignment with the v oluntary principles a bove all  
else we respect the human rights of all individuals impacted by our 
operations and we do not tolerate any violations of human rights 
committed by our employees affiliates or any third party acting  
on our behalf
o ur security practices are governed by our security management 
f ramework this includes our security c ode of c onduct security 
policy security management system security standard for compliance 
with the v oluntary principles and a number of guidelines for security 
processes and procedures incident reporting and investigations this 
framework applies to all of our operations and must be adhered to by  
all abg employees the implementation and enforcement of our 
security f ramework requires the involvement and cooperative efforts 
of a wide range of abg employees including operations security legal 
community environmental and human resources staff o ur d irector of 
security oversees day to day management of our security function and 
reports directly to our c hief o perating o fficer
a s part of our commitment to the protection of human rights we  
have a h uman r ights policy which defines our commitment to human 
rights and provides guidance to all abg employees and third party 
service providers of their responsibilities in this regard w e also 
maintain specific reporting and investigation procedures for all 
suspected human rights violations w e expect all abg employees to 
conduct themselves with the highest ethical standards and to respect  
the rights of all individuals be they fellow abg employees or members 
of local communities
2011 achievements and 2012 priorities
w e made a number of achievements in the overall progression of  
our security management programme during the year notably in 
connection with our overall action plan to help progress law and  
order in the n orth mara region
k ey achievements include the enhancement of the abg security 
management f ramework the establishment of our partnership with 
search for c ommon g round enhancements to the n orth mara security 
systems adoption of a formal abg h uman r ights policy initiation of 
our updated human rights training programme and increased training 
of security personnel
k ey targets for 2012 include implementation of further improvements 
to security controls and systems namely in the form of the completion 
of safety walls enhanced security technology for monitoring and 
surveillance further developing training and understanding of the 
v oluntary principles within our local communities and at regional and 
national level and further development of security standards in line with 
best practice in particular we are participating in the development of a 
national working group to promote the use of the v oluntary principles 
in tanzania in collaboration with search for c ommon g round k ey 
participants include representatives of the tanzanian government  
the tanzanian minister for minerals and e nergy members of the 
international community such as us and c anadian representatives  
and other ngo s
s ecurity systems and training
w e employ security staff retain security contractors and engage with 
the g overnment of tanzania in connection with matters relating to law 
and order in the localities in which we operate a s part of our security 
management f ramework all security site personnel must participate  
in security training at induction level and on a regular basis w e also 
assist with the provision of training on the v oluntary principles to the 
members of the tanzanian policing unit that are assigned to provide 
security in the areas surrounding our operations
in 2011 we also assisted our ngo partner search for c ommon g round 
with the provision of training on the v oluntary principles to members 
of the police force w e will continue to support the training of further 
members of the police force in this way in 2012 o verall our objective  
is to ensure all members of the police working in the vicinity of our 
operations receive training on the v oluntary principles
a s of 31 d ecember 2011 our security personnel including contractors 
totalled 1012 in 2011 we provided security training including training  
on h uman r ights and the v oluntary principles to 1823 individuals
w e conduct security risk assessments as part of overall security control 
reviews at our operations w e have concluded security risk assessments 
at all of our operations during the year and are in the process of 
implementing recommendations
the n orth mara mine has advanced numerous initiatives to improve and 
enhance security arrangements during the year k ey achievements include
•	 c ompletion of a review of the mine’s security perimeter to identify 
improvements c onstruction is now underway on a new 14 kilometre  
safety wall to prevent illegal miners from accessing hazardous areas 
c onstruction is expected to be completed by q3 2012
•	 installation of g ps tracking functionality to security radios allowing  
for better oversight and coordination of security personnel at the mine
•	 installation of additional cc tv cameras in sensitive areas at the 
mine n ew camera equipment has also been ordered to support  
the upgraded safety wall overview performance governance financial 
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67
ann ual re por t and acco un ts 2011
•	 r ecruitment and deployment of additional female security officers  
for strategic deployment on the mine site where potential for sexual 
harassment exists
•	 f urther development of mandatory human rights training to 
encompass sexual assault issues a ll abg security personnel  
have participated in updated training
•	 upgrading procedures for escalation of allegations of human  
rights violations
•	 d istribution in nearby communities of new materials and 
information to improve understanding of the inherent dangers 
associated with illegal mining and intrusions on the mine site  
this builds on previous public education campaigns
in addition abg and the tanzanian ministry of h ome a ffairs have 
completed a review of existing security arrangements with police in  
the n orth mara area the review recommended that abg continue to 
operate under an existing memorandum of understanding with police 
while security upgrades are underway o nce new perimeter fencing and 
other enhanced security features are complete both parties will review 
progress with the intention of shifting resources to community policing 
activities and capacity building for local law enforcement
human r ights initiatives
d uring the year and unrelated to the site intrusion in may we learned 
of disturbing allegations of sexual assaults by police and mine security 
around the n orth mara mine a fter conducting preliminary inquiries 
ab g launched a full investigation and urged tanzanian police to do  
the same to date abg investigators have conducted more than 200 
interviews and have provided relevant information to police police 
investigations remain ongoing
w e are unwavering in our commitment to respect human rights at all  
of our operations and we have a zerotolerance approach to human 
rights violations in addition to our existing c ode of c onduct and 
procedures which provide for human rights training as part of our 
commitment to the v oluntary principles during the year we have 
adopted a specific human rights policy based on international best 
practices in furtherance of this we are implementing an updated 
human rights compliance programme progress is underway in 
numerous areas including
•	 n ew procedures for reporting and investigating allegations of human 
rights violations
•	 h uman rights training for employees relevant contractors and  
other stakeholders
•	 n ew procedures related to employee hiring and due diligence 
requirements for certain employees and third party suppliers
•	 h uman rights assessments to be conducted by third party experts  
at all operations and projects encompassing leading human rights 
indicators including sexual violence
o ur activities in 2012 will focus on the continued development of human 
rights training and compliance programmes across our operations
s earch for common g round
w e have established a partnership with an internationally recognised 
n go  search for c ommon g round to facilitate conflict resolutions  
and to help strengthen trust and improve collaboration at all abg 
operations and in the local communities a ctive in 27 countries search 
for c ommon g round uses a multifaceted approach working with  
local partners to find culturally appropriate ways to deal with conflicts 
constructively to understand differences and act on commonalities 
r epresentatives from search for c ommon g round are undertaking  
the following activities around abg ’s mine sites
•	 providing training on the v oluntary principles on security and 
h uman r ights to tanzanian police
•	 implementing conflict reduction resolution and negotiation training 
programmes for community members including leaders traditional 
authorities elders youth and women
•	 c reating and distributing culturallyappropriate educational materials 
to inform community members about the v oluntary principles on 
security and h uman r ights un  guidelines on the use of force by 
law enforcement officials sexual harassment community policing 
and universal human rights 
•	 a ssisting abg in reviewing its external grievance mechanism to  
deal with community concerns for use in connection with historical 
grievances as well as present and future concerns
•	 f acilitating negotiation processes between abg and the communities 
on a range of issues of concern such as resettlement
•	 d esigning alternative sources of economic development to help  
reduce poverty in the area and as a result reduce the number  
of mine intruders
•	 e valuating an appropriate remedy programme for victims of sexual 
assault aligned with international human rights norms
•	 d eveloping a proposal for specific initiatives to help address violence 
against women in the mara region
•	 o rganising sporting events with mixed teams comprised of 
community representatives police mine employees and district 
government officials with the objective of developing collaborative 
community spirit
in 2011 search for c ommon g round provided training on human 
rights and conflict resolution to 508 members of the tanzanian police 
f orce w e will continue to support search for c ommon g round in  
the progression of these activities and its promotion of the v oluntary 
principles across tanzania as we move into 2012  68
www africanbarrickgoldcom
planning  construction
public disclosure  consultation through stakeholder engagement  
we aim to maintain transparency and consistency to help build and 
maintain credibility trust and broad community support w e focus on 
providing a timely and meaningful exchange of reliable and appropriate 
information that works towards a balance of interests with our diverse 
range of stakeholders
permitting we keep abreast of tanzanian regulatory requirements  
in order to apply for formal permits for our activities in a timely and 
transparent manner 
land acquisition  resettlement we are mindful of the prevailing 
traditional customs for gaining access to land land allocation land  
use and compensation in rural tanzania w e aim to avoid or minimise 
the economic or physical displacement of communities w hen 
resettlement is necessary we seek to align with international standards 
to minimise the impact on the affected individuals households and 
communities o ur internal governance structures help to ensure that 
evaluations negotiations compensation relocation and subsequent 
monitoring are all undertaken in a systematic sensitive and transparent 
manner giving due consideration to more vulnerable social groups
influx management population growth and project induced  
inmigration has become a significant challenge for the mining  
industry throughout a frica w e plan for influx through our proactive 
engagement with government and our own strategic and fully integrated 
approaches especially with respect to local hiring employee housing 
resettlement and our social investment interventions
corporate responsibility continued
o perating sustaina bili t y 
a cr oss t he m ine life cycl e
exploration  feasibility
informed consultation we follow an approach that demonstrates 
sensitivity patience and commitment to help build relationships that  
are based on trust and mutual understanding f rom the very beginning 
we strive to engage in a culturally appropriate manner that respects 
traditional protocols to help establish and maintain support for  
our activities
a ccess to land we work with our local stakeholders to understand 
individual and communal land use and both constitutional and 
customary land rights w e focus on conducting access negotiations  
in a courteous and transparent manner to gain ongoing acceptance  
and local approval
baseline studies before we begin our operations we seek to capture 
accurate quantitative and factual qualitative information using 
internationally accepted mapping and participatory methodologies  
w e seek to gain a thorough understanding of the complexities  
and subtleties of the locality in which we wish to operate to help  
us proactively manage our activities in a responsible and  
sustainable manner
impact assessment we recognise that our presence can affect local 
conditions in a myriad of ways to help us understand this effect we 
follow international good practice and conduct a variety of assessments 
that help to ensure we properly identify and fully assess the potential 
impact risks and opportunities that our proposed activities may have 
on host communities
management planning we develop methodical plans to help mitigate 
the impacts of our activities to help us drive towards true sustainable 
development our planning continuously seeks to identify and address 
the key risks challenges and opportunities that our presence may bring  overview performance governance financial 
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informa tion
69
ann ual re por t and acco un ts 2011
operations
n atural resource management we have focused initiatives at  
various stages of development and implementation for cyanide 
management and certification and reducing ghg and other  
emissions w here possible we aim to improve our renewable energy 
use water conservation and biodiversity management
local content employment  procurement we are aware of the 
significant potential economic effect of local hiring and purchasing  
w e therefore focus on using the comparative advantage of our business 
to create inclusive procedures for local employment and maximising 
commercial opportunities for local suppliers through business linkages 
w e appreciate that effective localisation will add significant value  
to tanzania our local communities and our c ompany and work  
on a variety of programmes to develop local skills provide our local 
employees with opportunities to advance in the c ompany and meet 
both our ongoing and future workforce needs
s ocial investment our presence always raises expectations that we will 
assist communities in meeting their basic needs o ur social investment 
in tanzania always seeks to encourage equality local ownership active 
partnerships and sustainability with the objective of avoiding the 
creation of dependency 
management systems we govern all our sustainability interventions 
through management systems that define performance requirements for 
all core functions o ur systems and tools help us to promote consistency 
across our operations manage our risks opportunities and relationships 
and satisfy our legal obligations and voluntary commitments
a ssurance and reporting we endeavour to monitor evaluate and 
report on the effectiveness of our actions and the outcomes through 
both external independent assessments and internal performance 
audits w e are keen to share our achievements and discuss our 
challenges with our stakeholders and shareholders 
closure
integrated closure planning we are developing processes to support 
closure planning which we will develop throughout the life of our 
mines w e aim to provide for continual stakeholder engagement and 
will seek independent advice where necessary in order to develop  
our understanding and knowledge of the various risks impacts and 
associated mitigation strategies required for effective closure planning 
o ur approach aspires to leave a lasting positive legacy in tanzania by 
working with our stakeholders to prepare for our eventual departure 
and the closure of our operations
disclosure  consultation the responsible closure of our operations 
will necessitate the active participation of a range of affected and 
interested stakeholders including g overnment to define mutually 
agreed closure criteria and thereafter plan and implement actions  
that will underpin successful closure
r eclamation  r ehabilitation wherever practical we try to focus on 
progressive reclamation during the operational mine life f or all our 
operations we aim to develop competent decommissioning reclamation 
and rehabilitation plans that detail the technical remediation solutions 
to provide for the biophysical integrity and chemical stability of our  
closed operations
c ustodial transfer  relinquishment throughout the closure process 
we aim to adopt participatory methodologies to promote broad internal 
and external stakeholder acceptance minimise grievances and to 
provide for tenure relinquishment and eventual transfer to the 
tanzanian government
longterm monitoring we will codefine the closure goals and 
benchmarks with our stakeholders w e will endeavour to use qualitative 
and quantitative monitoring metrics that have external and internal 
focuses and that are relevant to different target groups 70
www africanbarrickgoldcom
risk management
committed to effe ct ive 
risk management
the realisation of abg ’s strategy depends on its 
ability to take calculated risks in a manner that  
does not jeopardise the direct interests of abg ’s 
stakeholders f or this reason we use a number of 
processes and procedures to progress and manage our 
corporate strategy assets capital projects and people
overview
these processes are reviewed and developed on a continuous basis  
to support our initiatives and corporate goals o ur risk management 
framework incorporates the key requirements of iso 310002009  
uk corporate governance standards and other generally accepted 
governance principles this framework includes the c ompany’s risk 
management charter its risk management policy and a number of 
detailed risk management procedures a ll members of the abg g roup 
its material operations its service organisations its support functions 
and its processes and projects must comply with and adhere to the 
requirements of this risk management framework
management of risk across the business
w e believe that effective risk management requires collective responsibility 
and engagement across our organisation f or this reason in addition to 
making risk management a board level responsibility members of abg ’ s 
senior l eadership t eam functional department heads and incountry 
senior management are accountable for identifying mitigating and 
managing risk in accordance with the responsibilities of their function and 
role abg ’ s internal a udit function also plays a critical role in advising  
and producing guidance on riskrelated matters it assists management in 
conducting risk studies reviewing risk profiles interpreting risk data and 
integrating risk management in business processes
risk management processes
r isk management and identification forms part of our overall 
performance and operational reviews throughout the year o ur annual 
business plan and budget process are agreed in conjunction with risks 
that may affect delivery of operational and financial targets and project 
development quarterly business reviews which include a component  
of risk management and mitigating actions at appropriate stages of  
the business cycle are conducted by the senior l eadership team  
and reviewed by the board and its committees updates on key risks 
also form part of monthly business reporting on operational and 
financial performance
ab g management conducts a number of risk reviews throughout the 
year in preparation for the board’s annual internal controls and risk 
management assessment in 2011 management’s risk review activities 
focused on the following
•	 g roup level risk workshops with members of senior management  
to consider overall strategic risks the occurrence of which could 
affect our longterm objectives
•	 o perational risk workshops focused on operational specific risks and 
uncertainties which could affect life of mine or wider business plans
•	 f unctional risk workshops with various centralised departments 
including financial reporting and planning treasury tax technical 
services supply chain and human resources
r esidual risks are identified based on the effectiveness of existing 
controls and mitigating action plans prepared for all high impact  
areas w hen compiled all risk assessments are assessed by the senior 
l eadership team in the first instance where relevant the a udit and 
eh ss committees and ultimately form the basis of a detailed board 
review f urther details as regards the board’s risk management review 
for the year is provided on page 86
risk management process
monitoring 
 
review
communications 
 
consultations 
establish the context
risk assessment
risk identication
risk analysis
risk evaluation
risk treatment overview performance governance financial 
sta temen ts
sh areholder 
informa tion
71
ann ual re por t and acco un ts 2011
risk management across the business
board 
ultimately responsible for eectiveness of internal control systems
audit committee 
plays a key role in reviewing eectiveness
denes 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 eectiveness 
of internal control 
systems
reviews eectiveness 
of nancial reporting 
risk management 
systems
approves the annual 
internal and external 
audit plan
reviews all material 
ndings of the internal 
and external audit 
functions
a critical role in advising 
and producing guidance 
on riskrelated 
matters
assists management 
in conducting risk 
studies
reviews risk 
proles
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 eectiveness of abg’s 
environmental management programmes 
and systems security systems health and safety systems 
and social performance 72
www africanbarrickgoldcom
risk management continued
2011 risk management developments and assessments
w e have further progressed our risk management tools and internal 
controls processes throughout the year in particular additional 
procedures have been developed to support our annual risk assessment 
which provide for ongoing risk reviews within quarterly reporting 
structures monthly operating reviews and overall mine management 
reporting w e have also taken a number of steps to further mitigate  
our principal risks and will continue to evaluate ways in which we  
may manage and mitigate these risks on an ongoing basis
in particular we have made the following improvements to our  
internal controls and risk mitigation processes as part of our overall 
assessments of the operational challenges faced at buzwagi and  
n orth mara this year
•	 procedure for management of critical supplies and assets f urther 
management plans have been developed to identify and address 
critical assets and supplies in order to minimise the potential 
operational impacts of interruptions or losses of critical supplies 
assets andor infrastructure w e have performed a full review of 
critical parts and spares at our buzwagi operation following the sag 
mill motor failure in may 2011 c ritical spares identification is an 
ongoing process and will continue across our operations in 2012
•	 s ecurity reviews w e have completed security risk assessments at 
buzwagi tulawaka and n orth mara and are in the process of 
implementing a risk assessment at bulyanhulu w e have also made  
a number of improvements to our overall security function and 
systems following the n orth mara site intrusion f urther information 
regarding relevant actions is provided as part of our security review 
on page 66
o ver the course of 2011 we have made a number of developments in 
the identification and management of our risk profile in order to focus 
on the most significant risks and events that could affect our operations 
financials and performance w hile the overall makeup of our principal 
risks has not significantly changed from 2010 certain risk profiles have 
increased as a result of developments in our operating environment and 
continuing uncertainties and trends within the wider global economy 
andor the mining industry w here appropriate risk ratings have also 
been reviewed as a result of the further implementation of controls  
and other mitigating factors o verall abg ’s risk and rating as regards 
exposure to fluctuations in commodity pricing has remained the same 
despite the continuing movements and fluctuations in the average 
realised gold price given the overall strength of our balance sheet 
positive cash flows and the processes that we have adopted to 
continuously assess our exposure to rapid gold price movements  
d ue to overall industry cost pressures and increased cash costs at our 
operations primarily relating to increases in labour energy and capital 
equipment costs we have decided to increase the risk rating applicable 
to increases in our operating costs and capital expenditure going 
forward f urther information regarding cash costs and operational  
cash flow is provided as part of our finance review w e will continue  
to monitor operating costs vigorously at all of our operations and  
across our industry in general in connection with this and as a result  
of competition for qualified personnel across the mining industry 
generally we will also continue to monitor our ability to recruit and 
retain qualified personnel this will also require continual progression 
of training and development and employee and industrial relations 
programmes across our operations 
w ith its significant reliance on hydro power generation the tanzanian 
power network has been under particular strain throughout 2011  
as a result of unusually low rainfall levels and the impact of ongoing 
drought conditions in the e ast a frican region leading to regular power 
outages this has been exacerbated by maintenance work on the 
transmission network as well as on gas pipelines feeding the network 
the majority of the impact to abg has been experienced at buzwagi  
as a result of its reliance on grid power in response to this situation  
we invested in a first phase of 5 mw of backup power installed in july 
followed by a second phase of 16 mw  which was commissioned in 
d ecember and which now provides full backup power for the site  
a t our other mines tulawaka draws its power entirely from diesel 
generators n orth mara has full diesel backup and at bulyanhulu  
we have around 85 backup coverage which will move to 100  
by the end of q2 2012 
power supply overview performance governance financial 
sta temen ts
sh areholder 
informa tion
73
ann ual re por t and acco un ts 2011
w e have made good progress in increasing power generation capacities 
at our operations to help mitigate the effects of stoppages and 
interruptions therefore although we have experienced intermittent 
issues in utilities supply throughout the year as a result of ongoing 
power supply issues throughout tanzania our risk rating as regards 
interruptions in key utilities supplies remains unchanged w e will 
continue to monitor overall factors that could impact our production 
and cost estimates given the overriding importance placed on  
achieving production and cost estimates for our investor base in 
connection with this further enhancements to life of mine planning  
will remain a management priority in 2012 in a wider operational 
context whilst the operating environment within tanzania and across 
a frica generally continues to evolve we have continued to maintain a 
good working relationship with the tanzanian government and legal 
policy makers d uring 2011 we have achieved a number of positive 
outcomes as regards our commitments to tanzania notably through  
the agreement reached with the tra to address the treatment of certain 
outstanding indirect tax refunds and our secondary listing on the  
d ar es salaam stock e xchange therefore our outlook for political  
and legal risks and taxation reviews remains unchanged
r isks relating to security trespass and vandalism are inherent to our 
operations due to the industry and geographical locations in which  
we operate throughout the year we have continued to strengthen our 
security systems and further strategically assess our security action 
plans notably as part of overall reviews and investigations into the 
n orth mara site intrusion such that our overall assessment of security 
risks remains unchanged 
w e have also made a number of important steps to progress 
relationships with local communities and to support our licence  
to operate notably with the creation of the abg d evelopment 
maendeleo f und and the progression of a number of community 
projects h owever the overall achievements of our community  
relations programmes must also be viewed in the context of stability 
and therefore the security incident at n orth mara a s a result of this  
we have decided to increase the overall impact rating allocated to 
community relations risks to high however we do not envisage any 
change in the likelihood of further community related incidents 
occurring over the longer term
the following pages set out the principal risks affecting the abg g roup 
in addition there may be additional risks unknown to abg and other 
risks which are currently believed to be immaterial could turn out to be 
material to the g roup these risks whether they materialise individually 
or simultaneously could significantly affect the g roup’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 l astly 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 a dditional discussions of certain trends and 
uncertainties that may affect our operations are provided as part of  
our operating review
a s we go into 2012 we will benefit from our investment in  
additional backup generating capacity w e are also encouraged  
by the commitment from the tanzanian government and the national 
utility provider tane sco to add to the installed generating capacity 
as well as to improve maintenance of the existing infrastructure in  
the country 74
www africanbarrickgoldcom
principal risks and uncertainties
r isk k ey management responsibility mitigationcomment progress made in 2011
potential 
impact
c hange 
from 2010 f urther information
st ra tegic risks
single co un tr y ri sk
a ll of the abg g roup’s revenue is derived from production at its four facilities in tanzania in order to ensure continued growth the g roup  
needs to identify new resources and development opportunities through exploration and acquisition targets
v ice president of e xploration and 
h ead of c orporate d evelopment  
and investor r elations
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
•	 c ontinuing evaluation of corporate 
development opportunities across  
the region
high
–
    a review of exploration activities is  
set out in the e xploration review on 
pages 38 to 41
r e ser ve s and re so urce e stima te s
the abg g roup’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
c hief o perating o fficer and v ice 
president e xploration
abg management has implemented a number of processes to 
continuously monitor and evaluate the current life of the c ompany’s  
mine plans and production targets the abg g roup’s resources and 
reserves are updated annually abg follows ni 43101 of the c anadian 
institute of mining metallurgy and petroleum when calculating its 
mineral reserves and resources
•	 creation of reserves and resources 
committee to support senior l eadership 
team and board
•	 improvement of management processes 
for the monitoring of production targets 
and longterm life of mine planning 
high
–
    d etails of the abg g roup’s reserves 
and resources are set out on  
pages 112 to 115
d etails of abg ’s management 
committees are provided on page 83 
f inancia l ris ks
c o mmodi ty pri ce s
the abg g roup’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 r apid fluctuations in pricing of these commodities  
will have a corresponding impact on abg ’s financial position
c hief f inancial o fficer and  
g roup treasurer
abg ’s strategic objective is to provide maximum exposure to the price  
of gold a s 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
•	 e ntry into hedging facilities for copper 
silver and diesel
high
–
    f urther information is set out in the 
financial review on pages 42 to 51
c o sts and ca pital ex pend iture
ab g 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 
c hief f inancial o fficer and  
g roup treasurer
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 
•	 e ntry into receivables financing 
arrangements to assist with operational 
cash flow and reduce credit risk
•	 e xtended term of existing revolving 
credit facility 
•	 e ntry into arrangements in order to 
hedge south a frican rand exposure
high f urther information is set out in the 
financial review on pages 42 to 51
e x terna l ris ks
poli tical legal and reg ula to r y d evelo pmen ts
the abg g roup’s exploration development and operational activities are subject to extensive laws and regulations governing various matters in  
the jurisdictions in which it operates c hanges 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 g roup’s operations and development projects in particular as  
ab g ’s revenue is currently derived exclusively from the production of 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 g roup may also be adversely affected by changes in global economic conditions political andor economic instability in tanzania or any  
of its surrounding countries
v ice president of c orporate a ffairs 
and g eneral c ounsel
the g roup 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 g roup 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 a ct and 
applicable environmental legislation
•	 f urther development and improvement 
of g overnment r elations strategy
•	 progression of g overnment dialogue  
on material issues such as taxation
high
–
    f urther information is set out in  
n ote 31 to the consolidated financial 
statements on page 161
taxa tion review s
the abg g roup’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 d evelopment a greements
ab g ’s financial condition may also be adversely affected if it is unsuccessful in its current appeals andor discussions with the tra regarding 
outstanding tax assessments and unresolved tax disputes
c hief f inancial o fficer and  
g roup treasurer
the abg g roup 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
•	 e ntry into memorandum of settlement 
with the tra for the treatment of 
certain outstanding indirect tax refunds 
in respect of fuel levies and value  
added taxation
high
–
    f urther information on the status  
of these discussions is provided on 
page 47
utili tie s suppl y
power stoppages fluctuations and disruptions in electrical power supply or other utilities could adversely affect g roup 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 
c hief e xecutive o fficer  
c hief o perating o fficer  
and g eneral managers
c apacity of backup or alternative power generation at all of our 
operations has been increased to maintain critical systems
•	 c ontinuing upgrades to backup power 
at operations
•	 implementation of backup and 
spinning power at buzwagi to maintain 
critical systems
high
–
    f urther information on the status of 
power supply and buzwagi initiatives  
is provided on page 72  overview performance governance financial 
sta temen ts
sh areholder 
informa tion
75
ann ual re por t and acco un ts 2011
r isk k ey management responsibility mitigationcomment progress made in 2011
potential 
impact
c hange 
from 2010 f urther information
stra tegic risks
single co untr y ris k
a ll of the abg g roup’s revenue is derived from production at its four facilities in tanzania in order to ensure continued growth the g roup  
needs to identify new resources and development opportunities through exploration and acquisition targets
v ice president of e xploration and 
h ead of c orporate d evelopment  
and investor r elations
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
•	 c ontinuing evaluation of corporate 
development opportunities across  
the region
h igh
–
    a review of exploration activities is  
set out in the e xploration review on 
pages 38 to 41
res erves and reso urce estima tes
the abg g roup’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
c hief o perating officer and v ice 
president e xploration
abg management has implemented a number of processes to 
continuously monitor and evaluate the current life of the c ompany’s  
mine plans and production targets the abg g roup’s resources and 
reserves are updated annually abg follows ni 43101 of the c anadian 
institute of mining metallurgy and petroleum when calculating its 
mineral reserves and resources
•	 c reation of reserves and resources 
committee to support senior l eadership 
team and board
•	 improvement of management processes 
for the monitoring of production targets 
and longterm life of mine planning 
h igh
–
    d etails of the abg g roup’s reserves 
and resources are set out on  
pages 112 to 115
d etails of abg ’s management 
committees are provided on page 83 
financial risks
c ommodity prices
the abg g roup’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 r apid fluctuations in pricing of these commodities  
will have a corresponding impact on abg ’s financial position
c hief financial o fficer and  
g roup treasurer
abg ’s strategic objective is to provide maximum exposure to the price  
of gold a s 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
•	 e ntry into hedging facilities for copper 
silver and diesel
h igh
–
    f urther information is set out in the 
f inancial review on pages 42 to 51
c osts and cap ital exp enditure
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 
c hief financial o fficer and  
g roup treasurer
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 
•	 e ntry into receivables financing 
arrangements to assist with operational 
cash flow and reduce credit risk
•	 e xtended term of existing revolving 
credit facility 
•	 e ntry into arrangements in order to 
hedge south a frican rand exposure
h igh f urther information is set out in the 
f inancial review on pages 42 to 51
ex ternal risks
political legal and regula tor y develo pments
the abg g roup’s exploration development and operational activities are subject to extensive laws and regulations governing various matters in  
the jurisdictions in which it operates c hanges 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 g roup’s operations and development projects in particular as  
abg ’s revenue is currently derived exclusively from the production of 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 g roup may also be adversely affected by changes in global economic conditions political andor economic instability in tanzania or any  
of its surrounding countries
v ice president of c orporate a ffairs 
and g eneral c ounsel
the g roup 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 g roup 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 a ct and 
applicable environmental legislation
•	 f urther development and improvement 
of g overnment r elations strategy
•	 progression of g overnment dialogue  
on material issues such as taxation
h igh
–
    f urther information is set out in  
n ote 31 to the consolidated financial 
statements on page 161
taxa tion review s
the abg g roup’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 d evelopment a greements
abg ’s financial condition may also be adversely affected if it is unsuccessful in its current appeals andor discussions with the tra regarding 
outstanding tax assessments and unresolved tax disputes
c hief financial o fficer and  
g roup treasurer
the abg g roup 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
•	 e ntry into memorandum of settlement 
with the tra for the treatment of 
certain outstanding indirect tax refunds 
in respect of fuel levies and value  
added taxation
h igh
–
    f urther information on the status  
of these discussions is provided on 
page 47
utilities suppl y
power stoppages fluctuations and disruptions in electrical power supply or other utilities could adversely affect g roup 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 
c hief e xecutive officer  
c hief o perating officer  
and g eneral managers
c apacity of backup or alternative power generation at all of our 
operations has been increased to maintain critical systems
•	 c ontinuing upgrades to backup power 
at operations
•	 implementation of backup and 
spinning power at buzwagi to maintain 
critical systems
h igh
–
    f urther information on the status of 
power supply and buzwagi initiatives  
is provided on page 72  76
www africanbarrickgoldcom
principal risks and uncertainties continued
r isk k ey management responsibility mitigationcomment progress made in 2011
potential 
impact
c hange 
from 2010 f urther information
c o mm uni ty rel a tion s
a failure to adequately engage or manage relations with local communities and stakeholders could have a direct impact on the abg g roup’s  
ability to operate at its existing operations
c hief o perating o fficer  
g eneral c ounsel  
v ice president c orporate a ffairs 
senior d irector for e nvironment  
and c ommunity r elations
in addition to existing corporate social responsibility programmes  
the g roup 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
•	 creation of the abg d evelopment 
maendeleo f und
•	 partnership established with search  
for c ommon g round
•	 a ppointment of senior d irector for 
e nvironment and c ommunity r elations
high –
   
d etails of the g roup’s community 
relations activities are set out in the 
corporate responsibility section on 
pages 56 to 58
o pera tiona l ris ks
v ari a tion s to pr od uc tion and co st e stima te s
the abg g roup’ 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 c osts 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 f ailure to achieve production or cost estimates or material increases 
in costs could have an adverse impact on the abg g roup’ s future business cash flows profitability results of operations and financial condition
c hief e xecutive o fficer c hief 
f inancial o fficer c hief o perating 
o fficer and g eneral managers
abg ’s management has implemented a number of processes to 
continuously monitor and evaluate abg ’s production and cost  
estimates and targets
•	 improvement of management  
processes for the monitoring of 
production targets and longterm  
life of mine planning
high
–
   
l o ss o f cri tical pr oce sse s
the abg g roup’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 a ny failure or unavailability of operational infrastructure  
for example through equipment failure or disruption could adversely affect production output andor impact exploration and development 
activities d eficiencies in core supply chain availability could also adversely affect g roup operations
c hief o perating o fficer  
and g eneral managers
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 g roup 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
•	 d evelopment of additional critical 
spares review programmes
•	 c ompletion of critical spares review  
at buzwagi
high
–
    f urther discussion regarding critical 
spares reviews and loss of critical 
processes during the year are provided 
at page 72
e nvironmen tal ha zard s and rehabili ta tion
the abg g roup’s activities are subject to environmental hazards as a result of the processes and chemicals used in its extraction and production 
methods the g roup 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 a ny such action could have a material adverse effect on the g roup’s business 
operations and financial condition
c hief o perating o fficer senior 
d irector for e nvironment and 
c ommunity r elations d irector of 
e nvironment and g eneral managers
the g roup has committed itself to the application of global standards  
and implementing relevant international c ouncil on mining and  
metal practices and the international c yanide c ode standards 
c ompliance with applicable environmental standards is assessed  
on a continuous basis r emediation and rehabilitation costs are  
assessed and reviewed annually
•	 c yanide c ode c ertification progressed 
for all abg sites
•	 improvement in use of environmental 
management systems
•	 c ontinuing development of actions  
for discharge of epo at n orth mara
high
–
    d etails of the abg g roup’s 
environmental activities and 
compliance programmes are set  
out in the corporate responsibility 
section on pages 60 to 63 
e mpl o yee con trac to r and ind ustrial rela tion s
the abg g roup’ s business significantly depends upon its ability to recruit and retain qualified personnel in particular members of the senior 
l eadership 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 g roup’ 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 g roup’ 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
h ead of h uman r esources 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 a ssessments of employee and key contractor 
relationships are undertaken on a regular basis to ensure that the relevant 
support balances business requirements and wider expectations
•	 d evelopment of employee  
benefit packages
•	 c ontinued progression of programmes 
for workforce localisation
•	 progression of industrial  
relations programme
high f urther details on employee 
arrangements and related  
initiatives are provided in the 
corporate responsibility section  
on pages 58 to 60
sec uri ty  tre spa ss and v andali sm
ab g 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
c hief o perating o fficer g eneral 
c ounsel and d irector of security
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 w here appropriate the g roup continues to work 
in collaboration with local law enforcement to address securityrelated 
matters in addition abg adheres to the v oluntary principles as part  
of its membership of the barrick g roup
•	 upgrades of security infrastructure at 
buzwagi n orth mara and tulawaka
•	 increased training of security  
personnel across all operations
high
–
    f urther information on security 
developments and initiatives can be 
found in the corporate responsibility 
section on pages 66 and 67
h eal th and safe ty  infec tio us d isea se s
d ue to the nature of the g roup’s operations a wide range of occupational health diseases such as noiseinduced hearing loss and lung diseases  
pose a risk to the g roup’s workforce in addition tropical and infectious diseases such as malaria and hiv aid s pose significant health risks  
to the g roup’s employees due to the epidemic proportions that such diseases may have in areas at which the g roup’s operations are located  
the potential liabilities related to such diseases and the impact that these diseases may have on the g roup’s workforce may have an adverse  
effect upon the g roup’s operations and financial condition
c hief o perating o fficer and  
d irector of h ealth  safety
the g roup has implemented a number of malaria and tuberculosis 
programmes and hivaids awareness and prevention programmes  
for its employees their families and the local communities surrounding 
its operations it also provides occupational health services to its 
employees at its mine clinics and it continues to improve preventative 
hygiene initiatives h ealth and safety and risk management systems  
are in place onsite at all of abg ’s operations 
•	 progression of h ealth impact 
a ssessments at buzwagi and  
n orth mara
•	 d evelopment of abg health standards
medium
–
    f urther details of health and  
safety awareness programmes  
and initiatives are set out in the 
corporate responsibility section  
on pages 64 and 65 overview performance governance financial 
sta temen ts
sh areholder 
informa tion
77
ann ual re por t and acco un ts 2011
r isk k ey management responsibility mitigationcomment progress made in 2011
potential 
impact
c hange 
from 2010 f urther information
c ommunity rela tions
a failure to adequately engage or manage relations with local communities and stakeholders could have a direct impact on the abg g roup’s  
ability to operate at its existing operations
c hief o perating officer  
g eneral c ounsel  
v ice president c orporate a ffairs 
senior d irector for e nvironment  
and c ommunity r elations
in addition to existing corporate social responsibility programmes  
the g roup 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
•	 c reation of the abg d evelopment 
maendeleo f und
•	 partnership established with search  
for c ommon g round
•	 a ppointment of senior d irector for 
e nvironment and c ommunity r elations
h igh –
   
d etails of the g roup’s community 
relations activities are set out in the 
corporate responsibility section on 
pages 56 to 58
o pera tional risks
v aria tions to p rod uction and cost estima tes
the abg g roup’ 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 c osts 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 f ailure to achieve production or cost estimates or material increases 
in costs could have an adverse impact on the abg g roup’ s future business cash flows profitability results of operations and financial condition
c hief e xecutive officer c hief 
financial o fficer c hief o perating 
officer and g eneral managers
abg ’s management has implemented a number of processes to 
continuously monitor and evaluate abg ’s production and cost  
estimates and targets
•	 improvement of management  
processes for the monitoring of 
production targets and longterm  
life of mine planning
h igh
–
   
l oss of critical p rocess es
the abg g roup’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 a ny failure or unavailability of operational infrastructure  
for example through equipment failure or disruption could adversely affect production output andor impact exploration and development 
activities d eficiencies in core supply chain availability could also adversely affect g roup operations
c hief o perating officer  
and g eneral managers
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 g roup 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
•	 d evelopment of additional critical 
spares review programmes
•	 c ompletion of critical spares review  
at buzwagi
h igh
–
    f urther discussion regarding critical 
spares reviews and loss of critical 
processes during the year are provided 
at page 72
environment al haz ards and rehabilit a tion
the abg g roup’s activities are subject to environmental hazards as a result of the processes and chemicals used in its extraction and production 
methods the g roup 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 a ny such action could have a material adverse effect on the g roup’s business 
operations and financial condition
c hief o perating officer senior 
d irector for e nvironment and 
c ommunity r elations d irector of 
e nvironment and g eneral managers
the g roup has committed itself to the application of global standards  
and implementing relevant international c ouncil on mining and  
metal practices and the international c yanide c ode standards 
c ompliance with applicable environmental standards is assessed  
on a continuous basis r emediation and rehabilitation costs are  
assessed and reviewed annually
•	 c yanide c ode c ertification progressed 
for all abg sites
•	 improvement in use of environmental 
management systems
•	 c ontinuing development of actions  
for discharge of e po at n orth mara
h igh
–
    d etails of the abg g roup’s 
environmental activities and 
compliance programmes are set  
out in the corporate responsibility 
section on pages 60 to 63 
emp lo yee contract or and ind ustrial rela tions
the abg g roup’ s business significantly depends upon its ability to recruit and retain qualified personnel in particular members of the senior 
l eadership 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 g roup’ 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 g roup’ s business results of operations and financial condition 
in addition to employees abg depends on certain key contractors i nterruptions in contracted services could result in production slowdowns  
andor stoppages
h ead of h uman r esources 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 a ssessments of employee and key contractor 
relationships are undertaken on a regular basis to ensure that the relevant 
support balances business requirements and wider expectations
•	 d evelopment of employee  
benefit packages
•	 c ontinued progression of programmes 
for workforce localisation
•	 progression of industrial  
relations programme
h igh f urther details on employee 
arrangements and related  
initiatives are provided in the 
corporate responsibility section  
on pages 58 to 60
security  tresp a ss and v andalis m
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
c hief o perating officer g eneral 
c ounsel and d irector of security
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 w here appropriate the g roup continues to work 
in collaboration with local law enforcement to address securityrelated 
matters in addition abg adheres to the v oluntary principles as part  
of its membership of the barrick g roup
•	 upgrades of security infrastructure at 
buzwagi n orth mara and tulawaka
•	 increased training of security  
personnel across all operations
h igh
–
    f urther information on security 
developments and initiatives can be 
found in the corporate responsibility 
section on pages 66 and 67
heal th and safe ty  infectio us dis ea ses
d ue to the nature of the g roup’s operations a wide range of occupational health diseases such as noiseinduced hearing loss and lung diseases  
pose a risk to the g roup’s workforce in addition tropical and infectious diseases such as malaria and hivaids pose significant health risks  
to the g roup’s employees due to the epidemic proportions that such diseases may have in areas at which the g roup’s operations are located  
the potential liabilities related to such diseases and the impact that these diseases may have on the g roup’s workforce may have an adverse  
effect upon the g roup’s operations and financial condition
c hief o perating officer and  
d irector of h ealth  safety
the g roup has implemented a number of malaria and tuberculosis 
programmes and hiv aid s awareness and prevention programmes  
for its employees their families and the local communities surrounding 
its operations it also provides occupational health services to its 
employees at its mine clinics and it continues to improve preventative 
hygiene initiatives h ealth and safety and risk management systems  
are in place onsite at all of abg ’s operations 
•	 progression of h ealth impact 
a ssessments at buzwagi and  
n orth mara
•	 d evelopment of abg health standards
medium
–
    f urther details of health and  
safety awareness programmes  
and initiatives are set out in the 
corporate responsibility section  
on pages 64 and 65 78
www africanbarrickgoldcom
board of directors
quality leadership
1  aaron regent age 46 nonexecutive chairman
appointment f ebruary 2010
skills and experience mr r egent has held a number of senior 
management positions within the mining industry he has been the 
president and c hief executive o fficer and a d irector of barrick since 
2009 prior to joining barrick mr r egent was senior managing partner 
of brookfield a sset management and c oc hief executive o fficer of its 
infrastructure g roup mr r egent previously served as president and 
c hief executive o fficer of f alconbridge l td mr r egent holds a  
bachelor of a rts d egree from the university of w estern o ntario  
and is a c hartered a ccountant
executive directors
2  greg hawkins age 43 chief executive officer
appointment f ebruary 2010
skills and experience prior to joining abg  mr hawkins was 
previously employed by barrick where since june 2006 he served as 
c hief f inancial o fficer of the a ustralia pacific business unit f rom 1999 
to 2006 mr hawkins served in finance management roles for barrick 
a ustraliaa frica and for homestake mining before its acquisition by 
barrick mr hawkins also previously held roles as the f inance manager 
for n ormandy mining and as an a udit manager for d eloitte he holds  
a bachelor of c ommerce d egree from the university of w estern 
a ustralia he is a c hartered a ccountant and a member of the a ustralian 
institute of c ompany d irectors
3  kevin jennings age 42 chief financial officer
appointment january 2010
skills and experience mr jennings was previously employed by  
barrick where he served from a ugust 2009 as vice president of 
c orporate d evelopment mr jennings has held a variety of senior 
management positions in the mining industry over the last 13 years 
including d irector business o ptimisation at xstrata plc d irector 
strategic business a nalysis at f alconbridge l td and c hief f inancial 
o fficer at a merican r acing equipment inc a wholly owned subsidiary  
of f alconbridge mr jennings holds a bachelor of a rts d egree in 
economics from the university of w estern o ntario and a bachelor  
of a dministrative studies with honours in a ccounting from y ork 
university he is a c hartered a ccountant
nonexecutive directors
4  derek pannell age 65  
senior independent nonexecutive director
appointment f ebruary 2010
skills and experience mr pannell is a metallurgical engineer with over 
40 years of experience in the mining and metals industry he is former 
c hair of the mining a ssociation of c anada and a board member of the 
international c ouncil on mining and metals he holds several other 
1
3
8
10 9
2
4
6
ehss committee
d avid hodgson c hair d erek pannell 
stephen g albraith a mbassador mwapachu
audit committee
a ndre f alzon c hair james c ross 
michael k enyon
compensation committee
michael k enyon c hair a aron r egent 
james c ross a ndre f alzon
nomination committee
d erek pannell c hair a aron r egent 
a mbassador mwapachu
7
5
board committee membership as at 31 december 2011 o ver view performanc e gov ernance financial 
st at ement s
shar eho ld er 
information
79
ann ual r eport and acco unt s 2011
board appointments including a grium inc and is c hairman of the 
board of d irectors of brookfield infrastructure partners l p  mr pannell 
was formerly president c hief o perating o fficer and c hief executive 
o fficer of n oranda inc and f alconbridge l td mr pannell holds a 
bachelor of science d egree in engineering from imperial c ollege 
l ondon england and is a professional engineer registered in quebec 
and peru he is also an a ssociate of the r oyal school of mines and  
a f ellow of the c anadian a cademy of engineers
5  ambassador juma v mwapachu age 69  
independent nonexecutive director
appointment july 2011
skills and experience a mbassador mwapachu has held a number of 
senior positions in both the public and private sector of t anzania and 
was appointed as t anzania’s a mbassador to f rance from 2002 to 2006 
he was the founding secretary g eneral of the c hamber of c ommerce 
industry and a griculture served as c hairman of the c onfederation  
of t anzania industries between 1996 and 2000 and c hairman of the 
east a frican business c ouncil from 1999 to 2000 he has also served  
on a number of presidential c ommissions that consolidated t anzania’s 
market economy and was a member of the team that crafted t anzania’s 
d evelopment vision 2025 he has played a leading role in the regional 
integration of east a frica holding the position of secretary g eneral  
of the east a frican c ommunity prior to his appointment to the board 
a mbassador mwapachu holds a bachelor of l aw d egree with honours 
from the university of d ar es salaam a post graduate d egree in 
international l aw from the indian a cademy and a d octorate of 
l iterature honoris c ausa from the university of d ar es salaam 
6  andre falzon age 57 independent nonexecutive director
appointment f ebruary 2010
skills and experience mr f alzon 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 c ontroller  
at barrick between 1994 and 2006 he is a financial consultant and a 
d irector of a urizon mines l td he holds a bachelor of c ommerce 
d egree from the university of t oronto c anada and is a c ertified 
g eneral a ccountant c anada and a c hartered a ccountant c anada
7  david hodgson age 64 independent nonexecutive director
appointment o ctober 2011
skills and experience prior to joining abg  mr hodgson was 
employed by the a nglo a merican and d e beers group of companies  
for over 30 years and from n ovember 2001 through to his retirement  
in a pril 2005 he served as the c hief o perating o fficer of a nglogold 
a shanti he has also held a number of previous nonexecutive public 
company directorships at moto g old mines l imited uranium  
o ne inc and g oliath g old mining l imited mr hodgson is currently a 
nonexecutive director of a uryx g old c orporation mr hodgson holds  
a bsc in c ivil engineering from the university of w itwatersrand in 
johannesburg south a frica a bsc mining honours from the r oyal 
school of mines in l ondon and b c omm majors in economics and 
business economics from uni sa in south a frica he also attended  
an a dvanced management program at harvard university in the usa 
8  james cross age 63 independent nonexecutive director

appointment f ebruary 2010
skills and experience mr c ross has held a number of senior positions 
across the financial and mining sectors he is also a board member  
of the f inancial services board of south a frica d eputy c hairman of 
the policy board of south a frica c hairman of the f inancial markets 
a dvisory board and n onexecutive c hairman of swiss g old dmcc 
d ubai he was formerly senior d eputy g overnor of the south a frican 
r eserve bank c hairman of highland g old mining l td and a d irector 
of n amakwa d iamonds l td and mk s f inance g eneva he has a 
bachelor of c ommerce d egree from the university of w itwatersrand 
south a frica and is a f ellow of the institute of bankers of south a frica
9  michael kenyon age 62 independent nonexecutive director
appointment f ebruary 2010
skills and experience mr k enyon has more than 35 years of  
experience in the mining industry and is a geologist by training  
he is executive c hairman of the board of d irectors at d etour g old 
c orporation and c hairman of the board of d irectors at t roon  
ventures l td he has previously been president and c hief executive 
o fficer at both c anico r esource c orp and sutton r esources l td and  
a d irector of c umberland r esources l td he holds a master of science 
g eology d egree from the university of a lberta in c anada he was 
also the recipient of the 2005 d eveloper of the y ear award from the 
prospector and d evelopers a ssociation of c anada in recognition of  
his accomplishments
10  stephen galbraith age 40 nonexecutive director
appointment january 2010
skills and experience mr g albraith has been employed by  
barrick since a ugust 2000 in treasury and finance functions and  
is currently managing d irector of barrick international barbados 
c orporation he previously held the role of a udit manager for 
pricewaterhousec oopers he holds a bachelor of a rts d egree in 
a ccountancy from strathclyde university is a member of the institute 
of c hartered a ccountants of scotland and is a c hartered f inancial 
a nalyst c harterholder 

james c ross retired from the board at the beginning of march 2012 80
www africanbarrickgoldcom
senior management
comm itted to hig h 
perf o rman ce
in addition to abg ’s executive d irectors listed on previous page senior management includes the following 
marco zolezzi age 56 chief operating officer
skills and experience mr zolezzi was previously employed as d irector 
of t echnical services for barrick’s a ustralia pacific r egion prior to that 
mr zolezzi held a number of senior project roles in the industry 
including five years with n ewcrest mining where he was g eneral 
manager at the t elfer mine taking it from the project stage through to 
full production as well as 13 years with wmc r esources 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 a ustralia and south a frica with a variety of operational technical 
and project management roles in addition to d iplomas in mining and 
mechanical engineering from w itwatersrand institute of t echnology  
in south a frica mr zolezzi holds bachelor d egrees in a pplied science 
mechanical from the n ew south w ales institute of t echnology and  
in a pplied science mining from the w estern a ustralian institute  
of t echnology
deodatus mwanyika age 49 v ice president corporate affairs
skills and experience mr mwanyika was previously employed by 
barrick which he joined in 1999 as a l egal c onsultant and where  
he occupied various managerial positions over the last 11 years 
culminating in his appointment in 2008 as executive g eneral manager 
t anzania mr mwanyika holds a bachelor of l aw d egree with honours 
from the university of d ar es salaam and a masters in l aw from the 
university of c ambridge mr mwanyika is a member of the t anganyika 
l aw society and the east a frican l aw society
peter spora age 42 v ice president exploration
skills and experience mr spora was previously employed by barrick 
where he served as principal g eologist a frica from 2006 to 2008 and 
exploration manager a frica from 2008 to 2010 mr spora has over  
17 years of experience as a geologist in a ustralia and a frica he holds  
a bachelor of a pplied science in g eology d egree from the university  
of t echnology sydney a ustralia he is a member of the a ustralian 
institute of mining and metallurgy a usimm  a member of the 
t anzanian c hamber of minerals and energy and is a member of  
the society of economic g eologists
katrina white age 36 general counsel and company secretary
skills and experience ms w hite was previously employed by barrick 
where she served as r egional g eneral c ounsel and c ompany secretary 
for barrick a ustralia a frica subsequently barrick a ustralia pacific  
from 2005 to 2010 prior to joining barrick ms w hite was employed  
as a senior associate at hunt  humphry in a ustralia ms w hite has an 
honours d egree in l aw from the university of w estern a ustralia she  
is admitted to practise as a barrister and solicitor in w estern a ustralia 
the high c ourt of a ustralia and the f ederal c ourt of a ustralia 
andrew w ray age 48  
head of corporate development and investor relations 
skills and experience mr w ray was previously employed by jp morgan 
c azenove where he was a d irector in the c orporate f inance team  
mr w ray has over 13 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 w ray worked for  
the k uwait investment o ffice in l ondon dealing with their portfolio  
of investments in spain mr w ray holds a bachelor of a rts honours 
d egree in modern l anguages from university c ollege l ondon
kobus van v uuren age 52 head of human resources 
skills and experience prior to joining barrick mr van vuuren was 
senior d irector human r esources and services at midroc g old 
ethiopia and occupied various managerial positions over the previous 
24 years at a nglog old and harmony g old he joined barrick in 2007  
as human r esources manager at n orth mara and served in a number 
of capacities including o rganisational effectiveness manager and  
mine g eneral manager before being promoted to his current position 
in 2009 mr van vuuren is a diplomat of the institute of personnel 
management and has several qualifications in hr  t raining and 
d evelopment and industrial r elations he is a member of the  
society for human r esource management shrm  o ver view performanc e gov ernance financial 
st at ement s
shar eho ld er 
information
81
ann ual r eport and acco unt s 2011
corporate governance
ef f ectiv e g ov ern an ce
2011 g overnance highlights 
and key activities
 – strengthening board composition with  
new appointments
 – c ompletion of a review of all abg g roup policies 
 – d evelopment of abg business  
management f ramework
 – c ompletion of board and c ommittee  
performance evaluations
 – r eview of abg g roup strategy and risk profile
 – f urther development of risk management processes
effective governance is 
fundamental to the success of 
abg’s business it is a cornerstone 
of the way we operate and work  
in all areas of our business
derek p annell
senior ind epend ent n o ne xec uti ve d ir ector
dear shareholder
o ur commitment to excellence must be supported by effective and strong 
governance principles f or this reason the board places a premium on establishing 
and maintaining appropriate governance procedures and controls throughout our 
organisation tailored to support our business model and progress our longterm 
strategic objectives
d uring the year we conducted our first board and committee evaluations in line 
with applicable corporate governance standards the outcomes of which are outlined 
in this report f urthermore we have continued to strengthen the board’s spectrum 
of expertise with the appointment of a mbassador mwapachu and d avid hodgson  
as independent n onexecutive d irectors w e are delighted to welcome individuals 
of their calibre to our board and believe that they will be valuable resources for our 
c ompany and business bobby g odsell stepped down from the board in july of this 
year to pursue other interests more recently james c ross has also decided to retire 
from the board w e thank both bobby and james for their contributions to abg  
and we wish them well for the future
throughout the year the board has focused on further strengthening our governance 
practices and controls to support our existing governance framework in particular 
we have developed abg ’s business management f ramework which applies 
throughout our organisation to guide the correct implementation of our standards 
w e have also conducted a review of all corporate policies and standards in light of 
recent corporate governance developments notably the introduction of the uk 
bribery a ct and in the context of our recent secondary listing on the d ar es salaam 
stock exchange
f urthermore we have continued to build our risk management processes and 
internal controls assessments throughout the year and achieved satisfactory 
conclusion of our overall annual risk management and internal controls assessment 82
www africanbarrickgoldcom
corporate governance continued
structure of abg standards
v alues  code 
of conduct
business 
management 
framework
group policies 
procedures 
 standards
departments 
mine site rules 
 requirements
group policy 
guidelines
mandatory
mandatory
compliance 
requirement
mandatory
mandatory                      dictated in 
accordance with stated 
functional and mine 
site requirements
for use in 
understanding and 
implementing 
compliance obligations
abg’s business management framework has been 
developed to form an integral part of our global compliance 
programme for the conduct of our business setting out the 
key corporate policies procedures standards and practices 
that apply to the abg group as a whole e framework is 
further supported by departmental and mine site standards 
and requirements tailored to specic functional require
ments and operational needs  overall our business 
management framework denes the way we manage the 
economic social political environmental and governance 
practices for our operations it also helps to safeguard the 
satisfaction of our continuing regulatory obligations under 
our stock exchange listings
all members of the abg group our material operations 
support functions and every abg director ocer 
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 specic obligations 
also extend to abg contractors other associated parties and 
members of abg supply chains
responsibilities across our business management framework
o ur organisational structure is founded on the basis of sound business 
practice and in accordance with applicable corporate governance 
standards a ccordingly responsibilities are allocated between our board 
its committees our senior l eadership t eam and other members of 
senior management to ensure that our business operates as it should  
on a day to day basis
board composition
board balance
a s at 31 d ecember 2011 the board comprised a n onexecutive 
c hairman two executive d irectors and seven n onexecutive  
d irectors of whom six are independent f or the reporting period  
the board considers this to be the appropriate structure and board 
balance between executives and nonexecutives for abg to achieve  
its objectives
ab g regards all of its n onexecutive d irectors other than a aron r egent 
and stephen g albraith as independent within the meaning defined in 
the uk c orporate g overnance c ode the board regards a ndre f alzon 
as independent within the meaning of the uk c orporate g overnance 
c ode although he was an employee of the barrick g roup until 2006 and 
then provided consultancy services to the barrick g roup until 2008
board composition
as at 31 december 2011
executive
nonexecutive
board independence
as at 31 december 2011
independent
nonindependent
skills and experience
a ll of the d irectors 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 d irector biographies  
are provided on pages 78 and 79 the appointment of a mbassador 
mwapachu and d avid hodgson as independent n onexecutive 
d irectors during 2011 enhances the skill set and collective experience  
of our board in terms of regional affairs and the a frican gold  
mining industry o ver view performanc e gov ernance financial 
st at ement s
shar eho ld er 
information
83
ann ual r eport and acco unt s 2011
responsibilities across our business management framework
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 t eam 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
– nancial performance
– risk management
board committees
specic review and oversight functions
the
compensation
committee 
the ehss
committee 
 – 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
and
resources
committee
  
  
 
executive
investment
committee
 
the
nomination
committee 
 
the audit
committee
the
disclosure
panel
 
community
investment
committee
 
supported by senior
leadership team 84
www africanbarrickgoldcom
corporate governance continued
board skills
as at 31 december 2011
geology
engineering
financial
african operations
regional aairs
diversity
ab g strives to attract a broad mix of individuals from both the traditional 
and nontraditional mining labour markets this approach reflects our 
philosophy of equal opportunity and rests on the belief that a diverse 
workgroup gives a competitive advantage to our business and allows  
us to create a unique company culture in the context of board 
appointments the board and the n ominations committee regularly  
review the structure skills and composition of the board and will consider 
the recommendations of the d avies r eport as part of overall board 
appointment requirements and composition considerations to ensure  
that the composition of abg ’ s board remains appropriate for our business 
g enerally it is abg ’ s policy to hire the best candidates for all positions at 
all levels and we review all candidates accordingly irrespective of gender
board changes
a s previously noted we made two additions to the board during the 
reporting period with the appointment of a mbassador mwapachu  
and d avid hodgson as additional independent n onexecutive 
d irectors in addition to these appointments bobby g odsell stepped 
down from the board in july 2011 and james c ross has recently  
decided to retire from the board 
retirement and reelection
under abg ’s articles of association the d irectors may appoint 
additional members to join the board during the year d irectors 
appointed in this way must offer themselves for reelection at the  
first a nnual g eneral meeting following their appointment 
ab g ’s articles of association require all d irectors to retire and offer 
themselves for reelection by the shareholders at the first a nnual 
g eneral meeting following their appointment and every three years 
thereafter save for a mbassador mwapachu and d avid hodgson all 
existing abg d irectors were last elected to their positions at the 2011 
a gm  in light of the new provisions of the uk c orporate g overnance 
c ode abg intends to submit all d irectors for annual reelection with 
effect from the 2012 agm and therefore all board members will offer 
themselves for reelection at the forthcoming agm  the board 
determines that all of these d irectors are eligible for reelection
board leadership
chairman and chief executive o fficer
in line with best practice the roles of c hief executive o fficer and 
c hairman and their related responsibilities are separated the divisions 
of responsibilities have been set out in writing and agreed by the board
ab g ’s c hairman is principally responsible for the leadership of the 
board he is responsible for ensuring that the board plays a full  
and constructive part in the development and determination of the 
c ompany’s strategy and overall commercial objectives the c hairman  
is responsible for setting the board agenda leading its discussions and 
ensuring effective communication with shareholders the c hairman 
promotes the highest standards of integrity probity and corporate 
governance throughout abg  particularly at board level
ab g ’s c hief executive o fficer is responsible for all executive 
management matters affecting abg and is principally responsible  
for running the c ompany’s business a ll members of executive 
management report directly to him he is responsible for proposing  
and developing abg ’s strategy and overall commercial objectives and 
for implementing the decisions of the board and its committees he is 
also required to ensure that abg g roup affairs are conducted with the 
highest standards of integrity probity and corporate governance
senior independent director
ab g ’s senior independent d irector sid  is available for discussions 
with other n onexecutive d irectors who may have concerns which  
they believe have not been properly considered by the board as a  
whole he also acts as an alternative point of contact for the executive 
d irectors if required in addition to the normal channels of the 
c hairman and c hief executive o fficer a key responsibility of the sid  
is to ensure he is available to shareholders if they have concerns that 
have not been resolved by contact through the normal channels of 
c hairman c hief executive o fficer or other executive d irectors  
or where such contact is inappropriate
a t least annually and on other occasions as deemed appropriate our 
senior independent d irector leads a meeting of the n onexecutive 
d irectors without the c hairman present to appraise the  
c hairman’s performance o ver view performanc e gov ernance financial 
st at ement s
shar eho ld er 
information
85
ann ual r eport and acco unt s 2011
board meetings a udit committee c ompensation committee n omination committee ehss committee
n umber 
attended
maximum 
possible
n umber 
attended
maximum 
possible
n umber 
attended
maximum 
possible
n umber 
attended
maximum 
possible
n umber 
attended
maximum 
possible
a aron r egent 5 5 0 n a 5 5 1 2 0 n a
g reg hawkins 5 5 4 n a 5 n a 2 n a 4 n a
k evin jennings 5 5 6 n a 0 n a 0 n a 0 n a
d erek pannell 5 5 0 n a 1 n a 2 2 4 4
james c ross 5 5 6 6 5 5 0 n a 0 n a
a ndre f alzon 5 5 6 6 4 5 0 n a 0 n a
stephen g albraith 5 5 0 n a 0 n a 2 2 4 4
bobby g odsell

3 5 0 n a 0 n a 1 2 3 4
michael k enyon 5 5 6 6 5 5 0 n a 0 n a
a mbassador juma v  mwapachu

1 5 0 n a 0 n a 1 2 2 4
d avid hodgson

2 5 1 n a 0 n a 0 n a 1 4
 d irectors appointed midyear
 d irector resigned midyear
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 
ab g ’s articles of association do not provide the c hairman with a second 
or casting vote a ll d irectors are required to take decisions objectively 
and in the best interests of the c ompany
ab g ’s n onexecutive d irectors are expected to apply independent 
judgement to contribute to issues of strategy and performance and to 
scrutinise the performance of management in addition the committees 
of the board play an active role in reviewing management’s performance 
and achievement of abg objectives on the basis of responsibilities 
falling within the remit of each committee
the board is scheduled to meet at least four times a year and at such 
other times as are necessary to discharge its duties d uring the year  
the board decided to hold at least one scheduled meeting per year  
in t anzania to provide senior managers from across the business with 
an opportunity to present to the board and meet board members 
informally this also provides the board with an opportunity to  
further develop its relationships across the abg workforce
d uring 2011 the board met on five occasions in addition members  
of the board also participated in a formal strategy review with members 
of senior management outside scheduled board meetings in 
johannesburg the attendance record for scheduled board and 
committee meetings for each d irector for 2011 is shown below
both a mbassador mwapachu and d avid hodgson were appointed  
in the third quarter of 2011 a s such their attendance at board and 
committee meetings speaks as of their date of appointment bobby 
g odsell stood down from the board in july 2011 and therefore he was 
not eligible to attend meetings scheduled in the second half of 2011
board briefings and development
the board receives monthly management reports and quarterly reports 
outlining all material operational financial and strategic developments 
these ensure that members remain properly briefed on the performance 
and financial position of the abg g roup board and committee papers 
are circulated prior to all meetings to allow d irectors to be briefed in 
advance of discussions a ll 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 d irectors have access  
to members of the senior l eadership t eam and to whatever further 
information they need to perform their duties and to satisfy their 
responsibilities abg ’ s independent n onexecutive d irectors and 
committee chairmen meet with members of the senior l eadership t eam to 
receive more indepth briefings on board and committee matters whenever 
required or requested in addition all d irectors continue to have free access 
to visit operations outside scheduled board arrangements a ll d irectors 
appointed as of yearend undertook operational site visits in 2011 86
www africanbarrickgoldcom
corporate governance continued
o ur senior independent d irector and the c ompany secretary review 
training and development needs on an ongoing basis and ensure that 
new members receive an appropriate induction to the c ompany and 
our business t raining standards and requirements also form part of 
board evaluation criteria f or the year under review the board noted 
that it was generally satisfied with the level of training and development 
provided in addition as part of agreed actions from evaluations 
conducted the c ompany will look to conduct further training and 
reviews on uk c orporate g overnance practices generally and 
developments in market remuneration practices and trends
d irectors may take independent professional advice as necessary at 
ab g ’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
board performance and evaluation
summary of board’s work in 2011
the board considered all relevant matters within its remit for the 
reporting period but focused in particular on the following items
•	 strategy management
•	 o perational and financial performance reviews with a particular 
focus on production performance and targets
•	 d evelopment of the abg d evelopment maendeleo f und 
•	 c orporate policy and compliance review
•	 g rowth opportunities and exploration project reviews
•	 board evaluation
in addition in light of the challenges faced at n orth mara and buzwagi 
the board in collaboration with its committees conducted specific 
reviews of g roup security systems and environment programmes for 
stakeholder engagement management and control of critical supplies 
and progression and development of optimisation plans
board evaluation
d uring the reporting period the board conducted its first performance 
evaluation process under the guidance of the c ompany secretary 
the evaluation was carried out by way of anonymous questionnaires 
that were collated by the c ompany secretary and then reviewed and 
discussed a s the evaluation was the first conducted since abg ’s initial 
public offering the questionnaire focused on a range of topics including 
the following 
•	 establishment and role
•	 c omposition appointments skills experience and training
•	 a ttendance at meetings contribution internal relationships
•	 l eadership
•	 strategic aims and objectives
•	 r isk management
•	 procedures and internal controls
•	 c ommunication with shareholders and others 
a report on the outcome of the overall performance evaluation was 
provided to the board for discussion and review purposes
each committee followed a similar process under the leadership of the 
committee chairman
in addition to the board and committee evaluations the senior 
independent d irector led a review of the c hairman’s performance  
in line with uk c orporate g overnance requirements which took  
into account the views of all independent n onexecutive d irectors
o verall the results of these evaluations found that the board and its 
committees are operating effectively that the individual d irectors’ 
performances continue to be effective that each individual has 
committed sufficient time for the discharge of their duties f urther 
details as regards the evaluation process in particular the assessment 
conducted and key areas agreed for further action and improvement  
are set out in the diagram on page 87
internal control
the board is responsible for the abg g roup’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 g roup faces abg ’s system of internal controls and risk 
management takes into account the recommendations contained in the 
t urnbull g uidance on internal systems and c ontrols published by the 
f inancial r eporting c ouncil in o ctober 2005 the ‘t urnbull g uidance’ 
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 a udit 
function carries out to help the board identify and manage the most 
significant risks and events that could affect the c ompany’s operations 
financials and performance w here necessary the board is assisted by 
its committees in reviewing internal systems and controls particularly 
the a udit committee which is responsible for reviewing the effectiveness 
of the g roup’s internal control and financial risk management systems 
a n 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 o ver view performanc e gov ernance financial 
st at ement s
shar eho ld er 
information
87
ann ual r eport and acco unt s 2011
performance evaluation process
 discussion with comp any secretary
each director specically discussed his evaluation feedback with the 
company secretary for purposes of discussing individual performance 
and future development needs
 assessment for the committees 
e evaluation results were used to produce a performance report which was
used as a basis for discussion and debate and to agree key performance targets
and actions for 2012
 assessment for the board
overall board evaluation results were used to produce a performance report
which was presented to the board
e board evaluation was used as a basis for discussion and debate and to
agree key performance targets and actions for 2012  
 key performance targets and actions for 2012
– assessment of terms of reference eectiveness of members’ skills 
experience and qualications
– key performance targets and actions for 2012 individually set by 
each committee as detailed in each committee report
key performance targets and actions for 2012
– development of succession planning
– further development of orientation and training processes
– further enhancement of risk management procedures
– progression of stakeholder engagement
– further development of strategy
board ev aluation 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
committee ev aluation focus 
 roles and responsibilities
 composition appointments
 skills experience and training
 attendance contribution
 internal relationships
 leadership
 procedures and 
 internal controls
in 2011 the board conducted its rst performance evaluation process under the guidance of the company secretary by way of anonymous questionnaires 
as the evaluation was the rst conducted since abg’s initial public oering the questionnaire focused on a range of key topics including the following 88
www africanbarrickgoldcom
corporate governance continued
in compliance with its obligations the board has conducted an annual 
assessment of the effectiveness of the c ompany’s risk management and 
internal control systems this review has covered all material controls 
including financial operational and compliance controls in conjunction 
with abg ’s internal a udit f unction and members of the senior 
l eadership t eam the board has conducted a specific assessment  
of internal controls for the purposes of this report this assessment 
considered all significant aspects of internal control arising during the 
period covered by this report d uring the course of its review of the 
system of internal control the board did not identify or hear of any 
failings or weaknesses which it determined to be material therefore  
a confirmation of any necessary actions undertaken is not required
relationship with shareholders
dialogue with the investment community
the head of c orporate d evelopment and investor r elations is primarily 
responsible for maintaining abg ’s ongoing relations with the investor 
and shareholder community acting as the primary point of contact  
for members of this community d uring the course of 2011 abg 
conducted a number of international investor meetings and analyst 
presentations abg intends to meet with investors and analysts at least 
twice a year to discuss g roup 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 d uring the reporting 
period abg added to its investor relations team with the appointment 
of an investor r elations manager in l ondon increasing its capacity in 
this regard
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
majority shareholder
ab g 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 g roup’s majority shareholder a s a result of this 
relationship abg continues to have access to the barrick g roup for a 
number of support services and receives strategic shareholder support 
for its initiatives and goals abg and barrick executed a number of 
agreements and arrangements as part of the ipo process to ensure  
that their ongoing relationship was appropriately structured including  
a relationship agreement the principal purpose of the relationship 
agreement is to ensure that abg is capable of carrying on its business 
independently of the barrick g roup and that transactions and 
relationships with the barrick g roup are conducted at arm’s length  
and on normal commercial terms
under the terms of the relationship agreement barrick has agreed to 
exercise its powers so far as possible to ensure that abg is managed in 
accordance with the uk c orporate g overnance c ode it has also agreed 
that it will not exercise its voting rights or powers that would cause abg 
to breach any of the key eligibility criteria for its listing on the main 
market of the l ondon stock exchange
barrick is entitled to appoint d irectors to the board in line with a 
sliding scale that depends on barrick’s percentage shareholding 
pursuant to the sliding scale barrick is entitled to appoint the higher of
•	 three n onexecutive d irectors and the maximum number of 
n onexecutive d irectors that may be appointed while ensuring  
that the composition of the board remains compliant with the uk 
c orporate g overnance c ode for so long as barrick holds an interest 
in 40 or more of the issued share capital or voting rights of abg 
•	 two n onexecutive d irectors and one less than the maximum 
number of n onexecutive d irectors that may be appointed while 
ensuring that the composition of the board remains compliant  
with the uk c orporate g overnance c ode for so long as it has an 
interest in 25 or more of the issued share capital or voting rights  
of abg  and
•	 one n onexecutive d irector and two less than the maximum number 
of n onexecutive d irectors that may be appointed while ensuring 
that the composition of the board remains compliant with the uk 
c orporate g overnance c ode for so long as it has an interest in 15 
or more in abg 
in addition subject to certain exceptions and only for so long as barrick 
holds 30 or more of the issued share capital or voting rights of abg  
barrick has undertaken that it shall not and shall procure that other 
members of the barrick g roup shall not carry on the exploration of 
gold or silver in a frica or acquire whether through an asset purchase  
or the purchase of securities a gold or silver mining business in a frica 
that competes with the c ompany unless barrick has first notified abg 
in writing of such opportunity if abg indicates that it wishes  
to pursue such opportunity within 15 business days of receiving the 
notification then neither barrick nor any other member of the barrick 
g roup shall pursue the opportunity unless the c ompany subsequently 
decides not to pursue the opportunity or fails to do so within a 
reasonable period of time
ab g has given a reciprocal noncompete commitment to barrick  
in this regard
the relationship agreement will continue for so long as abg is listed on 
the l ondon stock exchange and barrick owns or controls in aggregate 
15 or more of its issued share capital or voting rights o ver view performanc e gov ernance financial 
st at ement s
shar eho ld er 
information
89
ann ual r eport and acco unt s 2011
agm
abg ’s 2012 agm will be held on 19 a pril 2012 at 200pm uk t ime 
the business of the meeting will be conducted in accordance with 
c ompanies a ct 2006 requirements and standards promoted by the uk 
c orporate g overnance c ode the c hairman and the chairmen of each 
of abg ’s board committees will be available to answer questions put to 
them by shareholders at the meeting the agm n otice is included in 
the documentation that has been provided with this report and is also 
available on the c ompany’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
a aron r egent and stephen g albraith are nominee d irectors appointed 
by barrick in line with its rights under the relationship agreement these 
individuals hold a number of crossdirectorships with members of the 
barrick g roup in particular mr r egent is c hief executive o fficer of 
barrick and mr g albraith is managing d irector of barrick international 
barbados c orporation these directorships and positions give rise  
to situations in which these d irectors could have a direct or indirect 
interest that conflicts or possibly may conflict with those of abg 
g reg hawkins k evin jennings and other members of senior 
management hold interests under barrick’s restricted stock unit plan 
which are not deemed to be material interests and will ultimately be 
replaced by interests under abg ’s share plans
the c ompanies a ct 2006 requires d irectors to avoid situations where 
they have or can have a direct or indirect interest that conflicts or  
may possibly conflict with c ompany interests however the a ct does 
allow d irectors 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 
prior to the reporting period
the monitoring and if appropriate authorisation of any actual or 
potential conflict of interest is an ongoing process d irectors are 
required to notify the c ompany of any material changes in positions  
or situations that have already been considered and any new situations 
in addition d irectors 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 d irector 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 c hairman whose findings  
are final and conclusive in the context of questions relating to any  
such conflict of the c hairman the question may ultimately be decided 
by a resolution of the other d irectors
specifically as regards d irectors appointed by barrick the relationship 
agreement provides that if any transaction or arrangement arises 
directly between a member of the barrick g roup and a member of  
the abg g roup and does or could in the opinion of a majority of 
d irectors excluding any d irectors appointed by barrick give rise  
to a conflict of interest between abg and any d irector appointed by 
barrick any such matter must be approved and authorised at a duly 
convened board meeting or in writing by a majority of d irectors 
excluding any d irectors appointed by barrick prior to the  
c ompany 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 in addition as part of training and 
development the board participated in an updated training session  
for the management of conflicts of interest save for the matters set out 
above no other conflicts of interest were disclosed to the board during 
the reporting period
corporate governance compliance
abg corporate governance practices are structured so as to comply 
wherever possible with the requirements of the uk c orporate 
g overnance c ode f or the year under review as a uk company with  
a premium listing on the main market of the l ondon stock exchange 
ab g is required to make certain statements regarding the way it  
is governed as required by the uk c orporate g overnance c ode 
a ccordingly this report explains how abg has applied and complied 
with the main principles of the uk c orporate g overnance c ode  
during 2011
it is the board’s view that abg has complied with the main principles  
of the uk c orporate g overnance c ode and its detailed provisions  
save that abg ’s c hairman mr r egent was not independent on 
appointment the d irectors consider that given mr r egent’s  
expertise in the industry his familiarity with the assets comprised 
within the abg g roup and his leading role with barrick his presence  
as c hairman is in abg ’s best interests even though he was not 
independent on appointment within the meaning of the uk c orporate 
g overnance c ode
ab g ’s external auditor has reviewed those parts of this statement which 
it is required to review under the l isting r ules of the united k ingdom 
l isting a uthority
in addition to compliance with the uk c orporate g overnance c ode  
as part of commitments given in connection with abg ’s secondary 
listing on the d ar es salaam stock exchange the board has undertaken 
to comply with the c orporate g overnance g uidelines issued by the 
t anzanian c apital markets and securities a uthority 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 c orporate g overnance c ode prevail 90
www africanbarrickgoldcom
corporate governance continued
audit committee report
i am the chair of the committee and have over 25 years of practical 
financial and management experience within the mining industry  
i am also a member of the c ertified g eneral a ccountants c anada 
and the institute of c hartered a ccountants c anada t ogether this 
provides me with the relevant financial experience required for my 
position under applicable governance standards f or the reporting 
period james c ross and michael k enyon comprise the other 
committee members a ll of us are determined to be independent  
in accordance with uk corporate governance standards under the 
terms of reference we are required to meet at least four times a year 
the c hief executive o fficer c hief f inancial o fficer the abg  
g roup f inancial c ontroller members of the t reasury function  
the head of r isk and internal a udit and the external auditors also 
attend committee meetings on a regular basis w e also hold 
individual meetings with abg ’s external auditors and the head of 
r isk and internal a udit without management present to discuss 
matters within our remit of responsibilities
o ur key responsibilities include oversight of financial reporting  
and internal controls over financial reporting overseeing the  
g roup’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 g roup’s  
systems of internal control and financial reporting risk management
f urther details regarding the committee and its terms of reference 
are available for inspection on abg ’s website
activities in 2011
w e met six times during the year four times in l ondon once in 
johannesburg and once in d ar es salaam members’ individual 
attendance is provided on page 85 the committee’s key 
achievements this year focused on the following
•	 a ssessment of the c ommittee’s terms of reference the 
effectiveness of the c ommittee and the skills experience  
and qualifications of its members 
•	 r eviewed the performance of the c ompany’s auditors made 
recommendations to the board on the appointment and  
compensation of the external auditors and reviewed and  
approved the auditors’ terms of engagement
•	 d eveloped and implemented a policy for review and approval  
of nonaudit fees and the provision of nonaudit services by  
the external auditor
•	 r eviewed the external audit plan and scope of work and the 
findings arising from all audit work performed by external audit 
including reviewing the auditors’ view on the c ompany’s internal 
control environment and fraud risk management
•	 r eviewed and made recommendations to the board in respect  
of annual financial statements quarterly and interim financial 
statements and related releases 
•	 r eviewed key accounting policies and developments in financial 
reporting regulatory and other changes
•	 r eviewing and monitoring the internal audit plan together with 
internal audit reports findings and monitoring of action plans 
•	 met directly with the cfo ’s and head of internal a udit’s  
direct reports and reviewed finance group structures  
succession planning and compensation and remuneration  
for these employees
•	 r eviewed enterprise risk registers tax disputes and litigation  
legal and regulatory compliance and the policies procedures  
and whistle blowing arrangements in place in relation to the  
c ode of c onduct fraud and bribery 
•	 r eviewing specific areas of focus – inventory movement critical 
spares and finance and supply chain it systems upgrades
•	 r eviewed and approved or recommended for approval to the 
board the f inancial management policy expanded financial 
delegation matrix and procedures
•	 r eviewed the integrity of processes and obtained certifications  
in relation to the public disclosure of information and the 
c ompany’s external website
•	 r eview of senior management and d irectors’ expenses
•	 r eviewed tax hedge and deferred stripping accounting 
•	 r eview of taxation matters
plans for 2012
l ooking to 2012 we aim to continue the development of certain  
key elements of our work plan and have introduced two new 
activities for the following year
continuing activities
•	 a ssess the committee’s terms of reference the effectiveness of  
the committee and the skills experience and qualifications  
of its members
andre fal zon
a udit committ ee c hair o ver view performanc e gov ernance financial 
st at ement s
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91
ann ual r eport and acco unt s 2011
nomination committee report
i act as chairman of the committee a aron r egent as of 29 n ovember 
2011 and a mbassador mwapachu comprise the other committee 
members for the reporting period until 29 n ovember 2011 stephen 
g albraith formed part of the committee and we thank him for his 
contribution to its work it has been determined that the majority  
of the members are independent in line with uk corporate  
governance requirements
w e play a leading role in reviewing the structure size and 
composition of the board and in reviewing prospective new  
board appointments w e have primary responsibility for making 
recommendations to the board on its composition and the 
composition of board committees generally w e also manage 
recommendations for the retirement and replacement of d irectors 
under the terms of reference we are required to meet at least  
once a year
f urther details regarding the committee and its terms of reference 
are available for inspection on abg ’s website
activities in 2011
w e met twice during the year members’ individual attendance  
is provided on page 85 the committee’s key achievements this  
year were
•	 a review of the board’s structure size and composition in the 
context of the c ompany’s position and strategy and development 
of a board skills matrix w e also reviewed the current board 
against that matrix to identify opportunities to strengthen  
the board 
•	 r ecommendations for board appointments and the 
reappointment of d irectors in accordance with the board 
assessment and skills matrix
•	 the identification and recruitment of two new d irectors with 
recognised expertise in areas important to the development  
of abg and the abg board
•	 r ecommendations for appointments to ehss chair and 
committee membership
•	 r eview the performance of the c ompany’s auditors and make 
recommendations to the board on the appointment and 
compensation of the external auditors and review and approve  
the auditor’s terms of engagement
•	 r eview and approve nonaudit fees
•	 r eview the external audit plan and scope of work and the 
findings arising from all audit work performed by external audit 
including reviewing the auditors’ view on the c ompany’s internal 
control environment and fraud risk management
•	 r eview and make recommendations to the board in respect  
of annual financial statements quarterly and interim financial 
statements and related releases 
•	 r eview key accounting policies and developments in financial 
reporting regulatory and other changes
•	 r eview and monitor the internal audit plan together with 
internal audit reports findings and monitoring of action plans 
•	 meet with direct reports to the cfo and head of internal a udit 
and review finance group structures succession planning and 
compensation and remuneration for these employees
•	 r eview enterprise risk registers tax disputes and litigation  
legal and regulatory compliance and the policies procedures  
and whistle blowing arrangements in place in relation to the  
c ode of c onduct fraud and bribery 
n ew activities
•	 r eview deployment of key finance and supply chain  
systems upgrades
•	 r eview implementation of key information system upgrades  
that impact the financial reporting system
derek p annell
n o mination committ ee c hair 92
www africanbarrickgoldcom
corporate governance continued
ehss committee report
i joined the c ompany during the year and succeeded bobby g odsell 
as chair of the committee as a result of my years of experience within 
the operating environment of the a frican mining industry stephen 
g albraith d erek pannell and as of a ugust 2011 a mbassador 
mwapachu make up the other members for the reporting period 
under the terms of reference we are required to meet at least twice  
a year the c hief executive o fficer c hief o perating o fficer 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
o ur key responsibilities include oversight of abg ’s development  
of strategy and policy on environmental occupational health and 
safety corporate social responsibility c sr  and security matters 
reviewing the effectiveness of g roup environmental health and 
safety and security management programmes systems and controls 
and generally overseeing management’s monitoring and evaluation 
of emerging c sr issues to assess the potential impact on abg ’s 
business and operations
f urther details regarding the committee and its terms of reference 
are available for inspection on abg ’s website
activities in 2011
w e met four times during the year members’ individual attendance 
is provided on page 85 a ll members of the committee have also 
spent a number of days on various occasions visiting the c ompany’s 
operations in t anzania the committee’s key achievements this year 
focused on the following
•	 a ssessment of the committee’s terms of reference the 
effectiveness of the committee and the skills experience  
and qualifications of members of the committee
•	 r eview and revision of terms of reference to include responsibility 
for security and c sr 
•	 o versight of ehss and c sr strategy performance metrics 
trends and incident reports
•	 increasing measurement of key metrics internally and against 
external benchmarks
•	 preparation of letters of appointment for new d irectors setting 
out the c ompany’s expectations of d irectors
•	 r eview of the performance of the committee its constitution and 
the terms of reference and inclusion of these recommendations  
in the committee’s objectives for 2012 
•	 r eview and development of material relevant to the committee’s 
mandate for inclusion in public reports and documents
•	 r eview of key regulatory and other developments including the 
d avies r eport and making recommendations to the board in 
relation to developments
•	 identified focus and methodology for identification of a talent 
pool for future appointments
plans for 2012
in 2012 we aim to continue the development of certain key actions 
within the remit of our responsibilities and have introduced 
additional new actions to support our work plan 
continuing activities
•	 a further review of the board’s structure size and composition 
and if necessary adjustment of the board skills matrix and 
succession pool methodology 
•	 r eview the performance of the committee its constitution and 
the terms of reference and develop any necessary action plans 
•	 r ecommend board appointments and reappointment of 
d irectors in accordance with the board assessment and  
skills matrix
•	 r ecommend appointments to c hair and committee membership 
as required
•	 prepare letters of appointment for new d irectors setting out the 
c ompany’s expectations of d irectors 
•	 r eview and develop material relevant to the committee’s mandate 
for inclusion in public reports and documents
•	 r eview key regulatory and other developments in relation to  
the committee’s mandate and make recommendations to the 
board as appropriate
n ew activities
•	 d evelop a list of potential d irectors in accordance with the 
priorities identified by the skills matrix including a thrust  
to increase diversity on the board
•	 d evelop formal succession plan for d irectors 
•	 r eview senior management succession planning and make 
appropriate recommendations to the board
•	 f urther develop the orientation process for new d irectors
dav id hodgson
ehss committ ee c hair o ver view performanc e gov ernance financial 
st at ement s
shar eho ld er 
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93
ann ual r eport and acco unt s 2011
•	 in relation to the areas the subject of the committee’s mandate 
review internal audit and incident investigation processes  
results and action plans including the implementation of  
these action plans
•	 r eviewed and developed material relevant to the committee’s 
mandate for inclusion in public reports and documents 
•	 r eviewed key regulatory and other developments relevant to  
the committee’s mandate and made recommendations to the 
board in relation to developments
•	 monitoring of permitting and implementation of the 
environmental management system upgrade
•	 r eview of c yanide c ode certification and compliance and 
recommendations to the board to upgrade the buzwagi 
detoxification plant 
•	 r eview of closure plan processes and rehabilitation costs and 
monitoring of environmental rehabilitation bond requests
•	 d evelopment and deployment of abg f ive c ritical standards  
for o hs
•	 r eview of land compensation processes and provisions
•	 d evelopment of abg d evelopment maendeleo f und to  
support community investment
•	 r eviewed government relations and engagement and public 
relations initiatives
•	 o versight of the n orth mara c oexistence plan
•	 r eviewing compliance with voluntary principles on security  
and human r ights
•	 provide strategic direction on illegal mining strategies 
•	 d eveloping framework for committee meetings to focus  
on key issues
•	 a doption of abg human r ights policy
plans for 2012
 in 2012 we aim to continue the development of certain key 
activities and have introduced new elements to our workplan in 
accordance with areas falling within our remit of responsibilities 
continuing activities
•	 a ssessment of the committee’s terms of reference the 
effectiveness of the committee and the skills experience  
and qualifications of members of the committee
•	 r eview and revision of terms of reference to include  
responsibility for security and c sr 
•	 o versight of ehss and c sr strategy performance metrics 
trends and incident reports
•	 increasing measurement of key metrics internally and against 
external benchmarks
•	 in relation to the areas the subject of the committee’s mandate 
review internal audit and incident investigation processes  
results and action plans including the implementation of  
these action plans
•	 r eview and develop material relevant to the committee’s mandate 
for inclusion in public reports and documents
•	 r eview key regulatory and other developments relevant to the 
committee’s mandate and make recommendations to the board  
in relation to developments
•	 monitoring of permitting and implementation of the 
environmental management system upgrade
•	 r eview of c yanide c ode certification and compliance and 
recommendations to the board to upgrade the buzwagi 
detoxification plant 
•	 r eview of closure plan processes and rehabilitation costs and 
monitoring of environmental rehabilitation bond requests 
•	 r eview of land compensation processes and provisions
•	 r eview of government relations and engagement and public 
relations initiatives
•	 o versight of the n orth mara c oexistence plan 
•	 r eview of compliance with voluntary principles on security  
and human r ights and abg human r ights policy
•	 provide strategic direction on illegal mining strategies 
n ew activities
•	 r eview of c ommunity r elations policy and standards
•	 f ormalisation of committee work plan
•	 exercising formal mandate of supervision of the abg 
d evelopment maendeleo f und 
•	 c onduct a review of retention and succession plans and 
remuneration strategies for key staff in ehss and  
c sr functions 94
www africanbarrickgoldcom
directors’ report
abg is incorporated and registered as a public limited 
company in england and w ales its headquarters are 
in l ondon and it is listed on the main market of the 
l ondon stock exchange and the d ar es salaam stock 
exchange under the symbol abg 
principal activities
the abg g roup is the largest gold producer in t anzania and the fifth 
largest in a frica growing from no production in 2000 to 688278 
attributable ounces in 2011 it has four producing mines all located  
in n orthwest t anzania and several exploration projects at various  
stages of development the abg g roup has substantial gold mining 
experience and expertise from exploration and development through  
to mine construction and operation
o ur four mines are
•	 bulyanhulu an underground gold mine which began production  
in a pril 2001
•	 buzwagi an open pit gold mine which began production in  
may 2009
•	 n orth mara an open pit gold mine consisting of three open pit 
deposits which began production in a pril 2002 and
•	 t ulawaka an open pit gold mine which has transitioned to an 
underground operation it began production in june 2005
f urther details of abg g roup’s activities are provided in the o verview 
and performance sections of this report d etails 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  
o verview and performance sections of this report
a n overview of the principal risks and uncertainties faced by the  
ab g g roup 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
a ll of the matters above are incorporated by reference in this  
d irectors’ report
directors
the names and biographies of the d irectors serving as at  
31 d ecember 2011 are provided on pages 78 and 79
a n overview of d irectors’ appointments for the duration of the year 
under review is provided below
d ate of appointment d ate of termination
a aron r egent 15 f ebruary 2010 n a
g reg hawkins 15 f ebruary 2010 n a
k evin jennings 14 january 2010 n a
james c ross 15 f ebruary 2010 march 2012
a ndre f alzon 15 f ebruary 2010 n a
stephen g albraith 19 january 2010 n a
d avid hodgson 20 o ctober 2011 n a
a mbassador juma v  mwapachu 14 july 2011 n a
michael k enyon 15 f ebruary 2010 n a
d erek pannell 15 f ebruary 2010 n a
w ith the exception of james c ross all d irectors will put themselves 
forward for reelection at the forthcoming agm  d etails of d irector 
reelection requirements are provided on page 84
bobby g odsell was appointed to the board on 15 f ebruary 2010 and 
resigned from the board on 11 a ugust 2011 to pursue other interests
directors’ indemnity insurance
in accordance with abg ’ s articles of association and to the extent permitted 
by the c ompanies a ct 2006 abg may indemnify its d irectors out of its 
own funds to cover liabilities incurred as a result of their office the relevant 
provision contained in the a rticles can be categorised as a ‘ qualifying third 
party indemnity provision ’ under the c ompanies a ct 2006 abg has 
adopted d irectors’ and o fficers’ liability insurance this provides insurance 
cover for any claim brought against d irectors 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
d etails of the interests of d irectors and their connected persons in 
ab g ’s shares or in related derivates or financial instruments are  
outlined in the d irectors’ r emuneration r eport on page 111
employee share schemes
d etails of abg ’s employee share plans and longterm incentive plans  
are contained on pages 104 and 105
employees
information relating to employees is contained on page 141 in  
n ote 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 
ab g ’s business management f ramework and c ode of c onduct which 
set out the framework in which abg expects all staff to operate this   o ver view performanc e gov ernance financial 
st at ement s
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95
ann ual r eport and acco unt s 2011
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
dividends
a n interim dividend of us32 cents per share was paid to shareholders 
on 26 september 2011 the d irectors recommend the payment of a final 
dividend of us131 cents per share subject to shareholders’ approval  
of this recommendation at the agm  the dividend will be paid on  
25 may 2012 to shareholders on the register at 4 may 2012 the 
exdividend date is 2 may 2012
ab g will declare the final dividend in us dollars unless a shareholder 
has elected or elects to receive dividends in us dollars dividends will be 
paid in pounds sterling with the us dollar amount being converted into 
pounds sterling at exchange rates prevailing on or around 9 may 2012 
c urrency elections must be made by return of currency election forms 
by the deadline date of 8 may 2012
annual general meeting
abg ’ s agm will be held on 19 a pril 2012 at 200pm uk t ime 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 c ompanies a ct 2006 or  
the articles of association to be made available to the meeting
share capital
a s at 31 d ecember 2011 abg ’s issued share capital comprised 
410085499 o rdinary shares of 10 pence each the voting rights of all 
ab g shares are identical with each share carrying the right to one vote 
ab g holds no o rdinary shares in t reasury and does not have any class 
of share other than its o rdinary shares f urther details on voting rights 
and rights relating to the transfer of shares are provided below
ab g ’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 
c ompanies a ct 2006 the cr est regulations or any other applicable 
law a s part of resolutions passed at the 2011 agm  abg obtained 
shareholder approval to make market purchases of up to 41008550 of 
its o rdinary shares equivalent to 10 percent of the issued share capital 
at the time of approval the authority was granted subject to stated 
upper and lower limits in accordance with l isting r ule requirements 
and expires at the forthcoming agm  the authority was not exercised 
during the year under review a n equivalent shareholder resolution will 
be sought as a matter of ordinary business at the forthcoming agm  
d etails of abg ’s issued share capital and any movements during  
the year are included on page 150 in n ote 22 to the consolidated 
financial statements
major shareholdings
the following persons as at 1 march 2012 are interested in the following 
percentages of abg ’s issued ordinary share capital
n ame
n umber  
of shares
percentage  
of issued  
share capital
barrick international barbados c orp 179609530 4380
pd g bank l imited 37378450 911
pd g sona c ayman l td 86258970 2103
total 303246950 7394
a ll of these shareholders are members of the barrick g roup
relationship with major shareholder
a n 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 88
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 page 56 
and as part of our finance 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 f urther details on trade creditors are provided on page 152  
in n ote 24 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
a s at 31 d ecember 2011 abg had an average of 58 creditor days for  
the abg g roup compared to 51 in 2010
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 n otes 27 28 and 29 to the consolidated financial statements 
contained on pages 153 to 160 of this report 96
www africanbarrickgoldcom
directors’ report continued
material agreements containing change of control provisions
the d irectors 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 g roup 
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 are to be provided to the abg g roup 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 88 of this report for an overview 
of the r elationship a greement
•	 credit agreement an overview of the credit agreement between 
among others abg and c itibank international plc as administrative 
agent is provided on page 49 of this report and page 184 n ote 27 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
ab g ’ s mining concessions are held by its operating companies in t anzania 
under applicable law a change of control of the operating companies 
requires the consent of the minister of energy and minerals in t anzania
there are no agreements in place between abg and its d irectors  
or employees which provide for compensation for loss of office or 
employment resulting from a change of control of abg 
special provisions also allow the early exercise of awards made  
under abg ’s stock o ption plan and early vesting of awards made  
under abg ’s l ongt erm incentive plan ‘l ti p’ in the event of a 
takeover reconstruction or winding up in such circumstances the 
c ompensation 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
w hen determining the vesting of lti p awards or options the 
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 a lternatively 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 88 of this report in addition to this relationship 
the d irectors consider the following contractual relationships and 
arrangements as essential for the conduct of abg ’s business
•	 tulawaka agreement although the t ulawaka mine is 100 owned 
and operated by pangea minerals l imited the economic interest in 
the mine is divided on a 7030 basis following a 1998 contractual joint 
venture agreement between pangea g oldfields inc an abg g roup 
company pgi  and mdn inc mdn  the t ulawaka a greement 
provides that all capital and operating costs associated with the 
t ulawaka 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 t ulawaka mine less any 
applicable withholding
•	 mineral development agreements each abg g roup operating mine 
has a mineral development agreement mda  with the t anzanian 
government the material terms and conditions of each such mda 
are substantially similar and include provisions governing royalty 
payments taxes and other charges banking arrangements local 
procurement obligations and import rights the mda s also provide 
for no expropriation or nationalisation rights broadly these rights 
provide that the t anzanian 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 
t anzanian law a dherence to the terms and conditions of the mda s 
is of significant importance to abg ’s business given the agreements’ 
overall importance to our operations
•	 tanesco relationship the n orth mara buzwagi and bulyanhulu 
mines rely upon electrical power generated by the state power utility 
company tan esco  abg has entered into a number of agreements 
and arrangements with tan esco in respect of power supply and 
purchase prices these agreements are reviewed on a regular basis  
a s national electricity generation and transmission systems in 
t anzania are limited abg ’s ongoing relationship with tan esco  
is of significant importance to its operations and business a ny 
adverse change or development in this relationship could produce  
a material adverse effect on abg ’s operations performance and 
financial condition
a ll other material contracts and arrangements are summarised above 
under ‘material agreements containing change of control provisions’ 
going concern
the d irectors’ statement on going concern is contained on page 50  
of this report
corporate governance compliance
the statement on compliance with the uk c orporate g overnance c ode 
for the reporting period is contained on page 89 of this report o ver view performanc e gov ernance financial 
st at ement s
shar eho ld er 
information
97
ann ual r eport and acco unt s 2011
articles of association
the c ompany’s articles of association may be amended by special 
resolution of the shareholders
shareholder rights
the rights and obligations attaching to the o rdinary 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
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 
c ompanies a ct 2006 a poll may be demanded by the c hairman 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 d irectors 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 c ompanies a ct 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 f inal 
dividends shall be declared by ordinary shareholder resolution in 
accordance with board recommendations n o 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 n o 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 d irectors 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 d irectors 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 f urthermore 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 
ab g a trustee in respect thereof a ll 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 
transfer 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
a ll transfers of shares which are in uncertificated form shall unless the 
cr est regulations otherwise provide be effected on a relevant system
the d irectors 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 98
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directors’ report continued
v  it is accompanied by the relevant certificate for the shares to which 
it relates and such other evidence as the d irectors 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 l ondon 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
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
ab g ’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 d irectors is present the power of the board to manage 
the business is subject to any limitations imposed by the c ompanies 
a ct 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 d irectors and provide the d irectors with the authority to 
delegate or confer upon such d irectors 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 c ompanies a ct 2006 the cr est 
regulations and any other applicable law the d irectors 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 g roup’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
n ew issues of shares
subject to the provisions of the c ompanies a ct 2006 the cr est 
regulations and every other enactment for the time being in force 
relating to the d irectors’ authority to allot shares andor the 
disapplication of preemption rights and to any resolution of the 
c ompany in general meeting regarding the same the d irectors 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
ab g ’s shareholders passed the following resolutions relating to the 
allotment and preemption right disapplications at the 2011 agm 
i  the d irectors 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 percent 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 five percent 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  o ver view performanc e gov ernance financial 
st at ement s
shar eho ld er 
information
99
ann ual r eport and acco unt s 2011
appointment and replacement of directors
shareholders may appoint any person who is willing to act as a d irector 
by ordinary resolution and may remove any d irector by ordinary 
resolution the board may appoint any person to fill any vacancy or as 
an additional d irector 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 d irector becomes prohibited by law or regulation from holding office 
or is persistently absent from d irectors’ meetings or if threequarters  
of appointed d irectors request his or her resignation or in the case of 
mental incapacity or bankruptcy
barrick’s rights to appoint d irectors are summarised on page 88
related party transactions
d etails of related party transactions undertaken during the year are 
contained in n ote 32 on page 162 of the consolidated financial statements
post balance sheet events
particulars of any important events affecting the c ompany or the abg 
g roup since the yearend are contained in n ote 35 on page 164 of the 
consolidated financial statements
audit information
having made the requisite enquiries so far as the d irectors are aware 
there is no relevant audit information as defined by section 4183  
of the c ompanies a ct 2006 of which the auditors are unaware and  
each d irector has taken all steps that he or she ought to have taken  
as a d irector 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 pricewaterhousec oopers ll p pwc  a resolution  
to reappoint pwc as auditors will be proposed at the forthcoming agm  
r efer to page 117 as part of the consolidated financial statements for the 
independent a uditors’ report
directors’ responsibilities statement
under applicable uk law the d irectors are responsible for preparing the 
a nnual r eport the d irectors’ r eport the r emuneration r eport and the 
financial statements in accordance with applicable law and regulation
responsibility for financial statements
the c ompanies a ct 2006 requires the d irectors to prepare financial 
statements for each financial year under that law the d irectors have 
prepared the g roup and parent company financial statements in 
accordance with international f inancial r eporting standards ifr s  
as adopted by the european union under company law the d irectors 
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 g roup and 
the c ompany and of the profit or loss of the abg g roup for that period 
in preparing these financial statements the d irectors 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 ifr s 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 c ompany will continue in business
the d irectors are responsible for keeping adequate accounting records that 
are sufficient to show and explain the c ompany’ s transactions and disclose 
with reasonable accuracy at any time the financial position of the c ompany 
and the abg g roup and enable them to ensure that the financial statements 
and the d irectors’ r emuneration r eport comply with the c ompanies a ct 
2006 and as regards the abg g roup ’ s financial statements a rticle 4 of the 
ia s r egulation they are also responsible for safeguarding the assets of the 
c ompany and the abg g roup and hence for taking reasonable steps for the 
prevention and detection of fraud and other irregularities
the d irectors are responsible for the maintenance and integrity of 
ab g ’s website and legislation in the united k ingdom governing the 
preparation and dissemination of financial statements may differ  
from legislation in other jurisdictions
responsibility statement required by disclosure and  
transparency rules
the d irectors 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 d irectors’ 
r eport 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
c o mpan y secr et ar y 100
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remuneration report
the committee is keen to ensure 
that we continue to attract retain 
and motivate the executive talent 
required to ensure that we deliver 
longterm shareholder value
michael k eny on
ch airman of t he c o mpen sation committ ee
7 marc h 2012
dear shareholder
o n behalf of the board i am pleased to present the d irectors’ report on 
remuneration for 2011 for which we will be seeking approval from shareholders  
at our a nnual g eneral meeting
2011 has been a strong year for abg financially with noticeable improvements in 
our operations and exciting progress in our exploration activities these could not  
be achieved without the combined effort of our senior l eadership t eam and our 
employees abg ’s c ompensation committee strives to ensure that our remuneration 
philosophy serves shareholder interests and closely reflects the g roup’s business 
strategy whilst also being mindful of the external focus on executive remuneration 
including the revised principles of remuneration issued by the a ssociation  
of british insurers and the consultations undertaken by the d epartment of  
business innovation and skills on ‘executive r emuneration’ and ‘the future  
of narrative reporting’ 
r eward in the global mining sector is highly competitive abg ’s remuneration 
policy seeks to retain and motivate our high performing team and to attract new 
talent the committee’s expectation is that a significant portion of abg ’s executive 
d irector remuneration is based on variable pay components to provide alignment 
with shareholder expectations g iven the longterm nature of our business our 
executive d irector remuneration packages are weighted toward longterm incentives 
with time horizons of three years and which payout only if share price growth  
is strong
a s highlighted in last year’s report the committee is aware that some features of  
the abg senior executive remuneration package whilst broadly consistent with 
typical practice in the global mining sector may not be common amongst largecap 
uk listed companies however we seek to ensure that abg ’s remuneration package 
is consistent with those companies operating in similar business sectors and in 
similar geographic locations to attract retain and motivate the specific executive 
talent required for the successful delivery of our business strategy
d uring 2011 the committee reviewed prospective changes to abg ’s remuneration 
policy for improved alignment with uk remuneration practice a fter considerable 
discussion the committee concluded that such changes would only reduce the 
competitiveness of the abg remuneration package relative to those offered by  
many of our sector peers and at barrick our majority shareholder c onsequently  
the committee intends to retain much of abg ’s remuneration structure in its  
current form in 2012 but will continue to review the structure to ensure it remains 
appropriate in the context of our specific circumstances f urthermore the 
committee intends to seek shareholder approval at the 2012 agm to amend the 
c ompany’s lti p rules the proposed amendments i provide for clawback in 
relation to awards granted to executive d irectors and ii seek to give greater 
flexibility in setting vesting periods and the extent to which performance conditions 
apply for awards granted to other employees f urther details of these amendments 
are set out on page 104 and have been provided with the agm n otice o ver view performanc e gov ernance financial 
st at ement s
shar eho ld er 
information
101
ann ual r eport and acco unt s 2011
summary of executive director remuneration policy and structure
c omponent o bjective d etails
base salary t o 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
a ny adjustments effective 1 january
benchmarked against international gold mining general mining  
and ft selisted 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 c ompany as a whole
shortt erm incentive t o align annual reward with annual 
performance ie reinforce the delivery  
of key shortterm operational objectives
a nnual opportunity of up to 150 of salary 75 of salary at target 
performance
based on performance against a balanced scorecard of g roup targets 
and individual objectives together with the committee’s view of the 
overall performance of the business
l ongt erm incentive t o provide strong alignment with 
shareholders’ longterm interests ie reward 
good longterm decisions which help deliver 
outperformance absolute share price 
growth and which support the retention  
of critical executives
a longterm incentive plan ltip
a nnual opportunity of awards of restricted stock units of up to  
200 of salary
r sus vest based on abg ’s threeyear t sr outperformance of 
international gold mining sector peers
b share option plan sop
a nnual opportunity of awards of options of up to 200 of salary
o ptions vest annually over four years in equal tranches
pension t o help provide for an appropriate 
retirement benefit
executive d irectors receive contributions of 25 of base salary into a 
personal pension scheme of the executive d irector’s choice or a cash 
supplement of commensurate value
audit notes
in accordance with section 421 of the c ompanies a ct 2006 and 
schedule 8 of the l arge and medium sized c ompanies and g roups 
a ccounts and r eports r egulations 2008 the ‘r egulations’ the 
following sections of the a nnual r eport have been audited d irectors’ 
r emuneration d irectors’ interests in shares under the abg l ongt erm 
incentive plan d irectors’ interests in options under the abg share 
o ption 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 c ompany’s overall remuneration policy and strategy
•	 setting reviewing and approving individual remuneration 
arrangements for the c hief executive o fficer and  
c hief f inancial o fficer
•	 setting reviewing and approving individual remuneration 
arrangements for the senior management team after considering  
the recommendations of the c hief executive o fficer
•	 approving the rules and launch of any c ompany 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 c hief executive o fficer and c hief  
f inancial o fficer
•	 setting reviewing and approving the corporate and individual 
performance goals for the senior management team based on the 
c hief executive o fficer’s recommendations
•	 assessing the achievement of corporate and individual performance 
goals of the c hief executive o fficer c hief f inancial o fficer and 
senior managers
•	 reviewing and making recommendations to the board with regard  
to succession planning with respect to the c hief executive o fficer  
and other members of senior management 102
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remuneration report continued
•	 ensuring that all provisions regarding disclosure of remuneration 
including pensions as set out in the uk c orporate g overnance  
c ode and the l isting r ules and as required in connection with the 
preparation of the d irectors’ 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 ft se companies
the full terms of reference of the c ompensation committee can be 
found on the abg website and copies are available on request d uring 
the year the committee comprised the c hairman of the board and  
three independent n onexecutive d irectors the members were
•	 michael k enyon c hairman
•	 james c ross
•	 a ndre f alzon
•	 a aron r egent
each member’ s attendance at meetings held during the year is set out in the 
c orporate g overnance r eport on page 85 james c ross has recently retired 
from the committee as a result of his departure from the board the 
following individuals attended meetings by invitation during the year and 
provided advice to the committee to enable it to make informed decisions
•	 g reg hawkins c hief executive o fficer and
•	 k obus van vuuren head of human r esources
n o d irector is present when his or her own remuneration is  
being discussed
the committee also meets without management and receives 
information and advice from k epler a ssociates an independent 
executive remuneration consultancy firm appointed by the committee 
in 2010 d uring 2011 k epler a ssociates provided advice to the 
committee on its review of remuneration market trends remuneration 
benchmarking and remuneration issues in general k epler a ssociates 
does not advise the c ompany on any other issues the committee  
also received legal advice from t ravers smith ll p during the year  
on specific matters relating to incentive awards
remuneration policy
abg ’s fundamental goal is to create value for its shareholders in serving 
this goal the c ompany’s remuneration policy is designed with the 
following objectives in mind
•	 to align the interests of executive d irectors with the short and 
longterm interests of shareholders
•	 to link executive remuneration to the performance of the c ompany 
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 c ompany’s strategy and align the 
senior l eadership t eam with the strategy and
•	 to remunerate the c hief executive o fficer c hief f inancial o fficer and 
senior l eadership t eam at a level and in a manner that ensures that 
ab g is capable of attracting motivating and retaining talent
in defining the c ompany’s remuneration policy the c ompensation 
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 a ssociation of british insurers abi  and the provisions  
of the uk c orporate g overnance c ode
t o implement the policy abg utilises three complementary 
performancerelated incentive schemes for the senior l eadership t eam
•	 the shortt erm incentive sti  – is designed to focus executives  
on the business priorities of the financial year and to reinforce  
the individual and c ompany performance ethic
•	 the l ongt erm incentive plan lti p – aims to motivate participants 
to maximise total shareholder return t sr  as measured against a 
comparator group of international gold mining companies over a 
period of three years and
•	 the stock o ption plan so p – aims to drive shareholder value over 
the long term and encourage retention
the three schemes complement each other and enable the measurement 
and reward of both short and longterm performance the committee 
considers that the threeyear vesting period for the lti p is appropriate 
as a measure of longterm performance and that the phased vesting 
period over four years for the so p is appropriate to encourage retention
activities in 2011
the c ompensation committee met five times during the year d etails of 
members’ attendance at meetings is provided on page 85 d uring 2011 
the committee carried out a number of activities including
•	 review of updates on the regulatory legislative and governance 
environment for executive remuneration
•	 review of the remuneration arrangements and market positioning of 
pay for the c hief executive o fficer c hief f inancial o fficer and senior 
l eadership t eam
•	 review and approval of 2011 individual performance forecast of 2011 
corporate performance results and pay recommendations for the 
c hief executive o fficer c hief f inancial o fficer and other members  
of the senior l eadership t eam and
•	 approval of 2012 salary increases sti payouts for 2011 and lti p and 
so p awards for the c hief executive o fficer c hief f inancial o fficer 
senior l eadership t eam and other senior functions and
•	 reviewed the changes to the abg package which would be required 
to ensure consistency with uk remuneration practice o ver view performanc e gov ernance financial 
st at ement s
shar eho ld er 
information
103
ann ual r eport and acco unt s 2011
components of remuneration
the current remuneration package for executive d irectors 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 g roup have been taken into 
account by the committee in determining the remuneration packages 
for executive d irectors
the proportion of each executive d irector’s total remuneration that  
is performancerelated is significant even for target performance  
f or stretch performance the proportion of total remuneration  
that is performancerelated is higher as is the total amount of 
remuneration payable
the average proportion of remuneration including pension that was 
performancerelated in 2011 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 c ompany’s share price 
growth and t sr  relative to the c ompany’s comparator group  
over the next three years
composition of remuneration package for executive directors
ceo cfo
fixed base salary 
benets and pension
v ariable cash and 
sharebased incentives
stretch
target target
stretch
as a  of total remuneration at target and 
stretch performance
base salaries
executive d irectors’ 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 d irectors’ salaries against comparator groups which for  
the 2011 salary review were international gold mining general mining 
and ft selisted companies of similar size and complexity f or 2012 
executive d irector salaries are between lower quartile and median  
for these comparator groups
the committee approved the following 2012 salary increases for 
executive d irectors
2012 salary increase on 2011 salary
c hief executive o fficer £475000 56
c hief f inancial o fficer £359700 10
the committee recognises that the salary increases for the executive 
d irectors in 2012 are likely to be outside the typical salary increase  
at other uk listed companies but considers the increases necessary  
to help ensure abg executive d irectors are paid fairly relative to  
other executives at similarsized companies in the global mining  
sector particularly given the recent intense competition for talent  
in this market
shortt erm incentive sti
the g roup operates a cashbased sti  which in 2011 provided for an 
annual bonus opportunity in the range of 0 to 150 of base salary for 
executive d irectors f or 2012 the committee has approved the following 
sti opportunities for the executive d irectors
2012 target  
bonus opportunity
2012 maximum  
bonus opportunity
c hief executive o fficer 75 150
c hief f inancial o fficer 75 150
a wards under the sti are earned based on g roup and individual 
performance f or the executive d irectors the g roup performance 
measures for the 2011 incentive year were based on four categories 
financial operations growth and c sr capturing safety environment 
security government relations and community relations f or 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 contract 
the following table illustrates the g roup measures used to determine 
the achievement of the sti in 2011 n ote the exact targets themselves 
are not disclosed for reasons of commercial sensitivity but performance  
in relation to threshold target and stretch levels are detailed below 104
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remuneration report continued
a chievement
c ategory o verall weight measure
below  
threshold
between threshold 
and target a t target
between target  
and stretch
a t or  
above stretch
f inancial 20 earnings •
c ashflow •
t sr vs peers •
n et a sset v alueshare •
o perations 20 production •
c osts •
g rowth 25 exploration  corp dev •
r eserve replacement •
o rganic projects •
c sr 35 c ommunityenvironment •
health  safety •
in 2011 the g roup scorecard assessment reflected a mixed year where the 
financial results exceeded expectations but targets set for production and 
cost performance were not met g rowth was strong across exploration  
and reserves but the timing of certain organic projects did not meet 
expectations in the c sr areas performance has been mixed w hile the 
c ompany had considerable success in often challenging environments on 
government and community relations environmental targets were not 
fully achieved w hilst the total reportable injury frequency rate improved 
overall safety performance was marked with a fatality at bulyanhulu f or 
the 2011 incentive year taking into account overall business and individual 
performance the committee has awarded the c hief executive o fficer and 
the c hief f inancial o fficer sti payments of 75 of base salary respectively
the committee will continue to monitor trends and developments in 
corporate governance and market practice to ensure the bonus structure 
remains appropriate
longterm incentives
the c ompany operates two share schemes in which the executive 
d irectors and other senior executives are eligible to participate the 
l ongt erm incentive plan lti p and the share o ption plan so p  
the committee recognises that some of the features of the lti p and 
so p  which are based on the same structure of longterm incentive 
awards granted by barrick are not fully consistent with general uk 
market practice d uring 2011 the committee reviewed the changes  
to the lti p and so p  which would be required to ensure consistency 
with uk remuneration practice a fter considerable discussion the 
committee has concluded that such changes would only reduce the 
competitiveness of the plans relative to the incentives offered by many  
of our global sector peers and at barrick c onsequently the committee 
intends that the lti p and so p awards continue in their current form  
to help ensure the remuneration packages are competitive in light of the 
recent intense global pressure on remuneration in the mining sector 
subject in the case of the lti p to the following amendments
•	 allowing for the clawback of awards or their proceeds made to 
executive d irectors under the lti p  in the exceptional circumstances 
of individual misconduct or financial misstatementmisreporting and
•	 allowing the committee to grant awards to participants who are not 
executive d irectors either awithout a performance condition or 
b subject to a performance condition which is measured over a 
performance period of less than three years
the committee considers that the amendment relating to clawback of 
executive d irectors’ awards is required in order to more closely reflect 
developing trends in executive remuneration arrangements as well as 
the recommendations made in the uk c orporate g overnance c ode 
and the abi g uidelines on executive r emuneration a n equivalent 
clawback provision applicable to shortterm incentives is also included 
in executive d irectors’ service contracts
the remaining amendments are intended to give greater flexibility in 
administering awards to employees other than executive d irectors the 
committee will continue to review the structure of the plans to ensure 
they remain appropriate in the context of our particular circumstances
the rules of the lti p and so p 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 the fair value of the combined lti pso p award granted during 
2011 was c150 of base salary for the c hief executive o fficer and the  
c hief f inancial o fficer respectively the committee made these awards 
on the basis that both the lti p and so p should be looked at in overall 
terms of i incentivisation and ii retention
longt erm incentive plan ltip
under the lti p  awards of conditional shares options or restricted stock 
units r sus may be granted t o date only r sus have been granted 
under the lti p  o ver view performanc e gov ernance financial 
st at ement s
shar eho ld er 
information
105
ann ual r eport and acco unt s 2011
the executive d irectors and the other members of our senior 
l eadership t eam are eligible to receive annual awards under the lti p  
a wards vest on the c ompany’s t sr performance share price and 
dividends against the market capweighted average t sr of a 
comparator group of companies over a threeyear performance  
period commencing on the date of grant there is no retest provision 
the c ommittee considers that t sr is an appropriate performance 
measure for the lti p because it captures objectively the shareholder 
return delivered over the long term and is less sensitive to shortterm 
changes in the gold price than many alternative measures commonly 
used in longterm incentives
in the event of a change of control vesting of awards under the lti p is 
not automatic and would depend upon the extent to which performance 
conditions had been met at the time
f or the 2011 lti p allocations the comparator group comprises 16 
companies the committee considers that this group represents an 
appropriate set of international gold mining companies against which 
ab g ’s performance could be compared by shareholders the companies 
in the comparator group are as follows
a gnicoeagle mines l td y amana g old inc
c entamin plc g old f ields l td
eldorado g old c orp a nglog old a shanti l td
harmony g old mining c o l td zijin mining g roup c o l td
iamgold c orp buenaventura mining c ompany

petropavlovsk pl c k inross g old c orporation
r andgold r esources l td polyus g old international l imited
semafo inc c enterra g old inc
 t ranslation of company name into english
the committee reviews this comparator group from time to time and 
intends to do so before making future allocations under the lti p 
the committee has set the following performance conditions for 
allocations made under the lti p
abg ’s t sr  outperformance  
of comparator group weighted  
mean over three years
 of allocated
 shares transferred
20 2x target
0 t arget
125 05x target
below 125 a ll allocated shares are forfeited
w here performance is between the above levels the percentage of 
shares to be transferred is determined on a proportionate basis
this performance condition can be illustrated as follows 
0
50
100
150
200
comparator
average 125
comparator
average
comparator
average 20
ltip performance conditions
 of allocated shares transferred
3year tsr
 
in 2011 the executive d irectors were granted r sus with a fair value of 
100 of salary which would vest in full for a 20 t sr outperformance 
the target award 75 of salary would vest if the c ompany’s t sr is in 
line with the comparator index
the committee recognises that permitting partial vesting for t sr 
performance below median is not consistent with market practice at 
uk listed companies however the c ommittee believes the current 
vesting schedule is appropriate in light of the limited free float in the 
c ompany’s shares given the majority shareholding and as a result  
the likely volatility of the c ompany’s t sr relative to that of its peers
stock option plan sop
the executive d irectors and the other members of our senior 
l eadership t eam are eligible to receive annual awards under the so p  
the c ompany may grant options over its shares with the option price 
set at least at the fair market value at the time of the grant g rants vest in 
equal parts over four years and expire seven years from the date of grant 
a fouryear vesting period is intended to aid in the retention of key 
talent and is in line with the approach used by barrick the committee 
may also at its discretion impose a performance condition on so p 
grants in 2011 the executive d irectors were granted options with no 
performance conditions attached with a fair value of 50 of salary 
legacy barrick incentive plans
f ollowing the ipo in march 2010 many members of our senior 
l eadership t eam who were previously employees of barrick retained 
stock options and restricted share units under barrick’s remuneration 
arrangements f urther details of these plans and any holdings of 
d irectors are disclosed on page 109 abg executive d irectors are no 
longer eligible for further awards under the barrick incentive plans 106
www africanbarrickgoldcom
remuneration report continued
pensions
executive d irectors receive contributions of 25 equal to gross base 
salary into a personal pension scheme of the executive d irector’s choice 
or a cash supplement of commensurate value it is separately identified 
in the emoluments table on page 107 the g roup does not operate any 
defined benefit schemes
dilution
since the c ompany’ s ipo in march 2010 no options have been exercised 
in the event of all options and shares outstanding as at 31 d ecember 2011 
under abg ’ s sharebased schemes which could be satisfied by the issue  
of new shares becoming exercisable the resulting issue of shares would 
represent approximately 05 of the issued share capital as at that date  
a s an alternative to satisfying the relevant awards by issuing new shares 
the c ompany may enter into arrangements with the a frican barrick g old 
employee benefit t rust to satisfy awards using market purchase shares
service contracts
the executive d irectors’ service contracts including arrangements for 
early termination are carefully considered by the committee and are 
designed to recruit retain and motivate directors of the quality required 
to manage the c ompany the committee considers that appointments of 
indefinite term and with a notice period of one year to be appropriate
the executive d irectors’ service contracts provide for compensation  
of 12 months’ salary in the event of early termination
senior leadership t eam excluding executive directors
the policy and practice with regard to the remuneration of senior 
employees below the executive d irectors is broadly consistent with that  
for the executive d irectors these individuals all have a significant portion 
of their reward package linked to performance they all qualify for annual 
bonus and lti p and so p awards and their performance targets are the 
same as or cascaded from the targets for the executive d irectors in 
addition awards of timevesting r sus are granted to members of the 
senior l eadership t eam to help ensure their retention the committee 
reviews and approves the individual remuneration packages for each 
member of the senior l eadership t eam in accordance with the overriding 
objectives of our remuneration policy their individual performance is 
reviewed and their base salary increases annual bonus payments and  
l ti p and so p awards are subject to approval by the committee each year
nonexecutive directors
the board aims to recruit n onexecutive d irectors of a high calibre 
with broad commercial international and other experience relevant  
to mining operations n onexecutive d irectors are appointed by the 
board on the recommendation of the n omination committee their 
appointment is for an initial term of three years subject to election by 
shareholders at each agm in accordance with the requirements of the 
new uk c orporate g overnance c ode upon the recommendation of 
the n omination committee they are reappointed for a second term  
of three years again subject to annual reelection by shareholders 
the terms of engagement of the n onexecutive d irectors are set out in  
a letter of appointment these letters do not contain any provision for 
compensation for early termination of office nor do they contain any 
notice periods 
the basic annual fee paid to n onexecutive d irectors for 2011 is 
£60000 per annum a dditional fees of £15000 are also payable for 
acting as senior independent d irector and £10000 for acting as 
c hairman of the a udit committee c ompensation committee or ehss 
committee respectively f ees are reviewed on a regular basis taking into 
account time commitment competition for high quality n onexecutive 
d irectors and market conditions f ollowing a review of market practice 
the c ompany has decided to increase the basic annual fee for 2012 to 
£65000 per annum n o change will be made to the current level of 
additional fees payable for acting as senior independent d irector or any 
board committee chairperson 
n onexecutive d irectors are not entitled to participate under the 
c ompany’ s shortterm or longterm incentive plans or pension schemes  
a t the forthcoming agm the board will seek shareholder approval to 
establish an arrangement whereby the c ompany’ s n onexecutive d irectors 
may elect to waive some or all of their annual fees in return for a deferred 
right to a cash payment which would be payable only after they cease  
to hold office with the c ompany  broadly  the cash payment would be 
calculated by reference to the fair market value of the c ompany’ s shares 
this proposal seeks to address certain practices and trends of n orth 
a merican mining companies that have adopted nonexecutive director 
plans which allow for participants to waive all or part of their annual fee in 
return for a right to a deferred cash payment g iven the global marketplace 
in which the c ompany operates the board believes that the fee 
arrangement currently offered to the c ompany’ s n onexecutive d irectors 
should provide additional flexibility for the settlement of annual fees in 
order to ensure that the c ompany is able to attract and retain the highest 
calibre of candidates for nonexecutive positions and to support and 
maintain the c ompany’ s competitiveness against its n orth a merican peers 
in addition the board believes that the fact that the amount of any cash 
payment under an award would be subject to fluctuations in the c ompany’ s 
share price directly aligns participants’ interests with shareholders’ interests 
if adopted only the c ompany’ s independent n onexecutive d irectors 
would be eligible to participate under the plan given that barrick  
nominee d irectors are not entitled to receive any fees in respect of their 
appointment f urther information regarding the proposed shareholder 
resolution and terms of the plan have been provided with the agm n otice
chairman
a aron r egent was appointed as c hairman with effect from 1 f ebruary 
2010 in line with the n onexecutive d irectors mr r egent’ s appointment 
is for a threeyear term and there is no notice period and no provision for 
payment in the event of early termination mr r egent receives no fee o ver view performanc e gov ernance financial 
st at ement s
shar eho ld er 
information
107
ann ual r eport and acco unt s 2011
performance graphs
the following graphs show i abg ’s t sr performance for the period from the ipo to 31 d ecember 2011 calculated in accordance with  
the regulations against the ft se 350 and abg ’s lti p comparator group and ii abg ’s t sr performance calculated in accordance with the 
regulations against the ft se 350 and abg ’s lti p comparator group during the reporting period the ft se 350 was chosen because this is  
a recognised broad equity market index of which abg was a member for the reporting period
70
80
90
100
110
120
130
31 december 2011 31 december 2010 18 march 2010
african barrick gold ftse 350 2011 ltip comparator group
v alue of £100 invested at ipo
historical tsr performance
growth in the value of a hypothetical £100 holding from ipo to 31 december 2011
the following section of this report provides details of the remuneration service contracts or letters of appointment and share interests of all the 
d irectors for the year ended 31 d ecember 2011
this part of the r emuneration report has been audited by abg ’s external auditors
audited directors’ remuneration
individual remuneration for the year to 31 d ecember 2011 2010 salaries quoted reflect the ten month period from march 2010 to 31 d ecember 2010 
in light of the timing of the c ompany’ s ipo  
  salaryfees   pension
 
t axable benefits
a
  bonus   t otal
2011 
£
2010 
£
2011 
£
2010 
£
2011 
£
2010 
£
2011 
£
2010 
£
2011 
£
2010 
£
a aron r egent – – – – – – – – – –
g reg hawkins 450000 346301 112500 86575 35543 70696 337500 270000 935543 773572
k evin jennings 327000 232603 81750 58151 35544 55816 245520 197000 689814 543570
james c ross 60000 50000 – – – – – – 60000 50000
a ndre f alzon 70000 60000 – – – – – – 70000 60000
stephen g albraith – – – – – – – – – –
d avid hodgson 13886 – – – – – – – 13886 –
a mbassador juma
v  mwapachu 26087 – – – – – – – 26087 –
michael k enyon 70000 60000 – – – – – – 70000 60000
d erek pannell 75000 60000 – – – – – – 75000 60000
former directors
bobby g odsell 42989 60000 – – – – – – 42989 60000
a includes car allowance and private medical health insurance
50
60
70
80
90
100
110
31 december 2011 31 december 2010
african barrick gold ftse 350 2011 ltip comparator group
v alue of £100 invested at ipo
historical tsr performance
growth in the value of a hypothetical £100 holding from 31 december 2010 to 31 december 2011 108
www africanbarrickgoldcom
108
www africanbarrickgoldcom
remuneration report continued
directors’ service contracts
executive directors
d etails of the service contracts of the executive d irectors who served during the year are set out below
  c ontract date   unexpired term   n otice period
g reg hawkins 23mar10 indefinite 12 months
k evin jennings 23mar10 indefinite 12 months
the executive d irectors’ service contracts provide for compensation of 12 months’ salary in the event of early termination n o payment is made on a 
change of control
chairman and n onexecutive directors
d etails of the service contracts of the n onexecutive d irectors who served during the year are set out below
 
c ontract  
commencement 
date  
expiry of  
current term
a aron r egent 01f eb10 01f eb13
james c ross 01f eb10 01f eb13
a ndre f alzon 01f eb10 01f eb13
stephen g albraith 01f eb10 01f eb13
d avid hodgson 20o ct11 19o ct14
a mbassador juma v  mwapachu 14jul11 13jul14
michael k enyon 01f eb10 01f eb13
d erek pannell 01f eb10 01f eb13
bobby g odsell 01f eb10 01f eb13
bobby g odsell ceased to be a d irector of the c ompany on 11 a ugust 2011 and james c ross has recently retired from the board d etails of all 
appointments are provided on page 94
audited directors’ interests in shares under the abg longt erm incentive plan
a ward date  
shares over 
which awards  
held as at  
01jan11  
shares over 
which awards 
granted  
during the  
year  
market price 
at date of 
award  
end of 
performance 
period   vesting date  
shares over 
which awards  
held as at 
31d ec11
g reg hawkins
25n ov10 39901 – £512 25n ov13 25n ov13 40219
30n ov11 – 90543 £497 30n ov14 30n ov14 90543
k evin jennings
25n ov10 22305 – £512 25n ov13 25n ov13 22482
30n ov11 – 65795 £497 30n ov14 30n ov14 65795
additional rsus are credited to reflect dividends paid on abg ordinary shares and are subject to the same vesting provisions as the underlying rsus that were 
actually granted o ver view performanc e gov ernance financial 
st at ement s
shar eho ld er 
information
109
ann ual r eport and acco unt s 2011
o ver view performanc e gov ernance financial 
st at ement s
shar eho ld er 
information
109
ann ual r eport and acco unt s 2011
audited directors’ interests in options under the abg share option plan
a ward date  
shares over 
which awards  
held as at  
01jan11  
shares over 
which awards  
granted  
during the  
year   exercise price  
exercised 
lapsed 
during the 
year  
market price  
at date of 
exercise   expiry date  
earliest  
vesting date  
f inal  
vesting date  
shares over 
which awards  
held as at 
31d ec11
g reg hawkins
27a pr10 125000 – £568 – n a 26a pr17 27a pr11 27a pr14 125000
25n ov10 142501 – £512 – n a 24n ov17 25n ov11 25n ov14 142501
29n ov11 – 135202 £497 – n a 29n ov18 29n ov12 29n ov15 135202
k evin jennings
27a pr10 100000 – £568 – n a 26a pr17 27a pr11 27a pr14 100000
25n ov10 79659 – £512 – n a 24n ov17 25n ov11 25n ov14 79659
29n ov11 – 98247 £497 – n a 29n ov18 29n ov12 29n ov15 98247
share price information
the midmarket price for the c ompany’s o rdinary shares at 31 d ecember 2011 was £459 the range during the year was £617 to £394
directors’ interests in options under the barrick share option plan
a ward date  
shares over 
which awards 
held as at 
01jan11  
shares over 
which awards 
granted 
during the 
year   exercise price  
exercised 
lapsed 
during the 
year  
market price  
at dare of  
exercise   expiry date  
earliest  
vesting date  
f inal  
vesting date  
shares over 
which awards 
held as at 
31d ec11
a aron r egent
06f eb09 500000 – us3857 n a n a 05f eb16 06f eb10 06f eb13 500000
08d ec09 231791 – us4244 n a n a 07d ec16 08d ec10 08d ec13 231791
07d ec10 154267 – us5483 n a n a 06d ec17 07d ec11 07d ec14 154267
stephen g albraith
30jul08 10000 – us4258 2500 us5550 29jul15 30jul09 30jul12 7500
07d ec10 5000 – us5483 n a n a 06d ec17 07d ec11 07d ec14 5000
g reg hawkins
07d ec04 2500 – us2380 2500 us5310 06d ec11 07d ec05 07d ec08 –
k evin jennings
08d ec09 21215 – us4244 n a n a 07d ec16 08d ec10 08d ec13 21215
barrick stock options
g rants vest in equal parts over four years and expire seven years from the date of grant subject to continued employment commensurate with 
competitive practice in n orth a merica 110
www africanbarrickgoldcom
110
www africanbarrickgoldcom
remuneration report continued
directors’ interests in barrick restricted share unit plan prsu and rsu
a ward date
incentive 
plan
shares over 
which 
awards held 
as at 
01jan11
shares over 
which 
awards 
granted 
during the 
year
market price  
at date of  
award
end of 
performance 
period vesting date
vested 
during the 
year
market price  
at date of 
vesting
l apsed 
during the 
year
shares over 
which 
awards held 
as at 
31d ec11
a aron r egent 
06f eb09 r sus 105858 – us3857 n a 06a ug11 106402 us4670 n a –
08d ec09 r sus 33934 – c 4463 n a 08jun12 – n a n a 34300
07d ec10 r sus 21598 – c 5525 n a 07jun13 – n a n a 21830
08d ec09 pr sus 33934 – c 4463 08d ec12 08d ec12 – n a n a 34300
07d ec10 pr sus 21598 – c 5525 07d ec13 07d ec13 – n a n a 21830
stephen g albraith 
09d ec08 r sus 4495 – us2725 n a 09jun11 4518 us4543 n a –
08d ec09 r sus 2402 – c 4463 n a 08jun12 – n a n a 2427
07d ec10 r sus 1786 – c 5525 n a 07jun13 – n a n a 1805
09d ec11 r sus – 2957 c 5082 n a 09jun14 – n a n a 2957
g reg hawkins 
30jul08 r sus 1614 – us4258 n a 30jul11 1623 us4852 n a –
09d ec08 r sus 2797 – us2725 n a 09jun11 2812 us4543 n a –
08d ec09 r sus 4577 – c 4463 n a 08jun12 – n a n a 4627
k evin jennings 
08d ec09 r sus 2426 – c 4463 n a 08jun12 – n a n a 2452
barrick restricted share units rsus
r sus were granted in lieu of actual shares each r su has a value equal to one barrick common share r sus granted prior to 2008 vest and are paid 
out in cash on the third anniversary of the grant date r sus granted after d ecember 2008 vest and are paid out in cash 30 months after the date of 
grant pursuant to the r su plan at vesting each r su will have a value equal to the then current average closing market price in c anadian dollars of 
one barrick common share on each day during the last five trading days prior to the vesting date a dditional r sus are credited to reflect dividends 
paid on barrick common shares and are subject to the same vesting provisions as the underlying r sus that were actually granted o ver view performanc e gov ernance financial 
st at ement s
shar eho ld er 
information
111
ann ual r eport and acco unt s 2011
barrick performance restricted share units prsus
the number of target pr sus granted equalled the number of r sus 
granted 25 of the total longterm incentive award pr sus vest based 
on the achievement of goals over a threeyear performance period
a dditional pr sus are credited to reflect dividends paid on barrick 
c ommon shares during the performance period pr sus resulting from 
dividend equivalent credits are subject to the same vesting provisions  
as the underlying pr sus that were actually granted
performance for pr su grants will be based on barrick’ s total shareholder 
return share price appreciation plus reinvested dividends over the three 
year period beginning the date of the grant and ending on the third 
anniversary compared to the total shareholder return performance  
for gold mining peers the comparator group is as follows
a gnicoeagle mines l td a nglog old a shanti l td
eldorado g old c orp g oldcorp inc
g old f ields l td harmony g old mining c o l td
iamgold c orp k inross g old c orporation
l ihir g old l imited n ewcrest mining l td
n ewmont mining c orp r andgold r esources l td
y amana g old inc
directors’ interest in abg ordinary shares or derivatives or 
financial instruments relating to such shares
a s at
31d ec11
a s at
01jan11
a aron r egent n a n a
g reg hawkins n a n a
k evin jennings 44000 n a
james c ross 20000 n a
a ndre f alzon 9000 n a
stephen g albraith n a n a
d avid hodgson n a n a
a mbassador juma v  mwapachu n a n a
michael k enyon n a n a
d erek pannell 15000 n a
bobby g odsell did not acquire any interests in abg shares whilst 
appointed as a d irector
f ollowing yearend d avid hodgson acquired 13000 of abg o rdinary 
shares and d erek pannell acquired a further 5000 shares taking his 
aggregate interest in abg shares to 20000 there have been no other 
changes in d irectors’ shareholdings between 31 d ecember 2011 and  
7 march 2012
external appointments
n one of the executive d irectors currently holds an appointment  
as a nonexecutive of another ft se 350 company
by order of the board
michael k eny on
ch airman of t he c o mpen sation c o mmitt ee
7 marc h 2012
r egistered office 
6 st james’s place 
l ondon 
sw 1a 1n p 
united k ingdom 112
www africanbarrickgoldcom
reserves and resources 
 
mineral reserves and mineral resources estimates contained in this 
report have been calculated as at 31 december 2011 in accordance  
with national instrument 43101 as required by canadian securities 
regulatory authorities unless otherwise stated canadian institute of 
mining metallurgy and petroleum cim definitions were followed  
for mineral reserves and resources calculations have been reviewed 
verified including estimation methodology sampling analytical and 
test data and compiled by abg personnel under the supervision of 
abg qualified persons nic schoeman director of technical services 
richard adofo corporate manager geology and tisa chama 
corporate manager mine planning however the figures stated are 
estimates and no assurances can be given that the indicated quantities 
of metal will be produced 
mineral reserves have been calculated using an assumed longterm 
average gold price of us120000 per ounce a silver price of  
us2200 per ounce and a copper price of us275 per pound reserve 
calculations incorporate current andor expected mine plans and cost 
levels at each property mineral resources have been calculated using  
an assumed longterm average gold price of us140000 per ounce  
a silver price of us2800 per ounce and a copper price of us325 per 
pound resources have been estimated using varying cutoff grades 
depending on the type of mine or project its maturity and ore types  
at each property reserve estimates are dynamic and are influenced  
by changing economic conditions technical issues environmental 
regulations and any other relevant new information and therefore  
these can vary from year to year resource estimates can also change 
and tend to be influenced mostly by new information pertaining  
to the understanding of the deposit and secondly the conversion to ore 
reserves in addition estimates of inferred mineral resources may not 
form the basis of an economic analysis and it cannot be assumed that  
all or any part of an inferred mineral resource will ever be upgraded  
to a higher category therefore investors are cautioned not to assume 
that all or any part of an inferred mineral resource exists that it can  
be economically or legally mined or that it will ever be upgraded  
to a higher category likewise investors are cautioned not to assume 
that all or any part of measured or indicated mineral resources will  
ever be upgraded to mineral reserves 
tulawaka mineral reserves and resources are stated as abg’s 70 
attributable portion  
definitions 
a mineral resource is a concentration or occurrence of diamonds 
natural solid inorganic material or natural solid fossilised organic 
material including base and precious metals coal and industrial 
minerals in or on the earth’s crust in such form and quantity and  
of such a grade or quality that it has reasonable prospects for economic 
extraction the location quantity grade geological characteristics and 
continuity of a mineral resource are known estimated or interpreted 
from specific geological evidence and knowledge mineral resources are 
subdivided in order of increasing geological confidence into inferred 
indicated and measured categories 
an inferred mineral resource is that part of a mineral resource for 
which quantity and grade or quality can be estimated on the basis  
of geological evidence and limited sampling and reasonably assumed 
but not verified geological and grade continuity the estimate is based 
on limited information and sampling gathered through appropriate 
techniques from locations such as outcrops trenches pits workings 
and drill holes 
an indicated mineral resource is that part of a mineral resource  
for which quantity grade or quality densities shape and physical 
characteristics can be estimated with a level of confidence sufficient  
to allow the appropriate application of technical and economic 
parameters to support mine planning and evaluation of the economic 
viability of the deposit the estimate is based on detailed and reliable 
exploration and testing information gathered through appropriate 
techniques from locations such as outcrops trenches pits workings 
and drill holes that are spaced closely enough for geological and grade 
continuity to be reasonably assumed 
a measured mineral resource is that part of a mineral resource  
for which quantity grade or quality densities shape and physical 
characteristics are so well established that they can be estimated with 
confidence sufficient to allow the appropriate application of technical 
and economic parameters to support production planning and 
evaluation of the economic viability of the deposit the estimate  
is based on detailed and reliable exploration sampling and testing 
information gathered through appropriate techniques from locations 
such as outcrops trenches pits workings and drill holes that are  
spaced closely enough to confirm both geological and grade continuity 
mineral resources which are not mineral reserves do not have 
demonstrated economic viability 
a mineral reserve is the economically mineable part of a measured  
or indicated mineral resource demonstrated by at least a preliminary 
feasibility study this study must include adequate information  
on mining processing metallurgical economic and other relevant 
factors that demonstrate at the time of reporting that economic 
extraction can be justified a mineral reserve includes diluting  
materials and allowances for losses that may occur when the material  
is mined mineral reserves are subdivided in order of increasing 
confidence into probable mineral reserves and proven mineral reserves  
a probable mineral reserve is the economically mineable part of an 
indicated and in some circumstances a measured mineral resource 
demonstrated by at least a preliminary feasibility study this study  
must include adequate information on mining processing 
metallurgical economic and other relevant factors that demonstrate  
at the time of reporting that economic extraction can be justified 
a proven mineral reserve is the economically mineable part of a 
measured mineral resource demonstrated by at least a preliminary 
feasibility study this study must include adequate information on 
mining processing metallurgical economic and other relevant factors 
that demonstrate at the time of reporting that economic extraction  
is justified  overview performance governance financial 
statements
shareholder 
information
113
ann ual report and acco unts 2011
reserves and resources 
 
mineral reserves and mineral resources estimates contained in this 
report have been calculated as at 31 december 2011 in accordance  
with national instrument 43101 as required by canadian securities 
regulatory authorities unless otherwise stated canadian institute of 
mining metallurgy and petroleum cim definitions were followed  
for mineral reserves and resources calculations have been reviewed 
verified including estimation methodology sampling analytical and 
test data and compiled by abg personnel under the supervision of 
abg qualified persons nic schoeman director of technical services 
richard adofo corporate manager geology and tisa chama 
corporate manager mine planning however the figures stated are 
estimates and no assurances can be given that the indicated quantities 
of metal will be produced 
mineral reserves have been calculated using an assumed longterm 
average gold price of us120000 per ounce a silver price of  
us2200 per ounce and a copper price of us275 per pound reserve 
calculations incorporate current andor expected mine plans and cost 
levels at each property mineral resources have been calculated using  
an assumed longterm average gold price of us140000 per ounce  
a silver price of us2800 per ounce and a copper price of us325 per 
pound resources have been estimated using varying cutoff grades 
depending on the type of mine or project its maturity and ore types  
at each property reserve estimates are dynamic and are influenced  
by changing economic conditions technical issues environmental 
regulations and any other relevant new information and therefore  
these can vary from year to year resource estimates can also change 
and tend to be influenced mostly by new information pertaining  
to the understanding of the deposit and secondly the conversion to ore 
reserves in addition estimates of inferred mineral resources may not 
form the basis of an economic analysis and it cannot be assumed that  
all or any part of an inferred mineral resource will ever be upgraded  
to a higher category therefore investors are cautioned not to assume 
that all or any part of an inferred mineral resource exists that it can  
be economically or legally mined or that it will ever be upgraded  
to a higher category likewise investors are cautioned not to assume 
that all or any part of measured or indicated mineral resources will  
ever be upgraded to mineral reserves 
tulawaka mineral reserves and resources are stated as abg’s 70 
attributable portion  
definitions 
a mineral resource is a concentration or occurrence of diamonds 
natural solid inorganic material or natural solid fossilised organic 
material including base and precious metals coal and industrial 
minerals in or on the earth’s crust in such form and quantity and  
of such a grade or quality that it has reasonable prospects for economic 
extraction the location quantity grade geological characteristics and 
continuity of a mineral resource are known estimated or interpreted 
from specific geological evidence and knowledge mineral resources are 
subdivided in order of increasing geological confidence into inferred 
indicated and measured categories 
an inferred mineral resource is that part of a mineral resource for 
which quantity and grade or quality can be estimated on the basis  
of geological evidence and limited sampling and reasonably assumed 
but not verified geological and grade continuity the estimate is based 
on limited information and sampling gathered through appropriate 
techniques from locations such as outcrops trenches pits workings 
and drill holes 
an indicated mineral resource is that part of a mineral resource  
for which quantity grade or quality densities shape and physical 
characteristics can be estimated with a level of confidence sufficient  
to allow the appropriate application of technical and economic 
parameters to support mine planning and evaluation of the economic 
viability of the deposit the estimate is based on detailed and reliable 
exploration and testing information gathered through appropriate 
techniques from locations such as outcrops trenches pits workings 
and drill holes that are spaced closely enough for geological and grade 
continuity to be reasonably assumed 
a measured mineral resource is that part of a mineral resource  
for which quantity grade or quality densities shape and physical 
characteristics are so well established that they can be estimated with 
confidence sufficient to allow the appropriate application of technical 
and economic parameters to support production planning and 
evaluation of the economic viability of the deposit the estimate  
is based on detailed and reliable exploration sampling and testing 
information gathered through appropriate techniques from locations 
such as outcrops trenches pits workings and drill holes that are  
spaced closely enough to confirm both geological and grade continuity 
mineral resources which are not mineral reserves do not have 
demonstrated economic viability 
a mineral reserve is the economically mineable part of a measured  
or indicated mineral resource demonstrated by at least a preliminary 
feasibility study this study must include adequate information  
on mining processing metallurgical economic and other relevant 
factors that demonstrate at the time of reporting that economic 
extraction can be justified a mineral reserve includes diluting  
materials and allowances for losses that may occur when the material  
is mined mineral reserves are subdivided in order of increasing 
confidence into probable mineral reserves and proven mineral reserves  
a probable mineral reserve is the economically mineable part of an 
indicated and in some circumstances a measured mineral resource 
demonstrated by at least a preliminary feasibility study this study  
must include adequate information on mining processing 
metallurgical economic and other relevant factors that demonstrate  
at the time of reporting that economic extraction can be justified 
a proven mineral reserve is the economically mineable part of a 
measured mineral resource demonstrated by at least a preliminary 
feasibility study this study must include adequate information on 
mining processing metallurgical economic and other relevant factors 
that demonstrate at the time of reporting that economic extraction  
is justified 
 
mine gold reserves and resources 
         2011          2010    
mine   classification tonnes 000’s grade au gt ounce 000’s   tonnes 000’s   grade au gt  ounce 000’s 
bulyanhulu   proven and probable 28189 11731 10632   29342   11687 11026
    mineral resource 17766 5283 3018   11062   8096 2879
    inferred 8318 12003 3210   8814   11804 3345
buzwagi   proven and probable 61424 1476 2915   55582   1619 2892
    mineral resource 35490 1124 1282   18079   0971 564
    inferred 10299 1156 383   6284   1215 246
north mara   proven and probable 35596 3045 3485   27623   3194 2836
    mineral resource 15990 2800 1440   18638   3059 1833
    inferred 1558 2557 128   1859   1893 113
tulawaka 70   proven and probable 166 12018 64   320   6527 67
    mineral resource 613 5458 108   518   5405 90
    inferred 116 5723 21   939   4976 15
total   proven and probable 125375 4241 17095   112867   4636 16821
    mineral resource 69859 2603 5847   48297   3456 5367
    inferred 20292 5736 3742   17052   6783 3719
              
exploration property gold reserves and resources 
mine   classification tonnes 000’s grade au gt ounce 000’s   tonnes 000’s   grade au gt  ounce 000’s 
nyanzaga   proven and probable – – –   –   – –
    mineral resource 73884 1465 3481   2781   3500 313
    inferred 9061 2054 598   7690   2630 650
golden ridge  proven and probable – – –  –  – –
  mineral resource 7417 2837 677  –  – –
  inferred 1221 2371 93  –  – –
total exploration  proven and probable – – –  –  – –
  mineral resource 81301 1591 4157  2781  3501 313
  inferred 10282 2092 691  7690  2629 650
total abg  proven and probable 125375 4241 17095  112867  4636 16821
  mineral resource 151160 2059 10005  51078  3459 5680
  inferred 30574 4511 4434  24741  5492 4369
              
contained copper reported within gold reserves and resources
mine   classification tonnes 000’s grade cu   pounds 000’s   tonnes 000’s   grade cu   pounds 000’s 
bulyanhulu   proven and probable 28189 0669 415958   29342   0662 428346
    mineral resource 17766 0315 123550   11062   0541 131887
    inferred 8318 0717 131535   8738   0745 143550
buzwagi   proven and probable 61424 0114 154082   51569   0125 141687
    mineral resource 35490 0099 77090   18079   0082 32828
    inferred 10299 0089 20119   6284   0080 11019
total   proven and probable 89613 0289 570040   80911   0320 570033
    mineral resource 53256 0171 200640   29140   0256 164715
    inferred 18617 0369 151654   15023   0467 154569
              
contained silver reported within gold reserves and resources
mine   classification tonnes 000’s grade ag gt  ounce 000’s   tonnes 000’s   grade ag gt  ounce 000’s 
bulyanhulu   proven and probable 28189 9385 8506   29342   9340 8812
    mineral resource 17766 4332 2474   11062   7251 2579
    inferred 8318 9859 2637   8738   10273 2886
  114
www africanbarrickgoldcom
reserves and resources continued 
 
mine gold reserves 
mine   classification   tonnes   grade au gt  contained au oz 
bulyanhulu   proven 1229684 10789  426557
    probable 26959226 11774  10205349
    total pp 28188910 11731  10631905
buzwagi   proven 4958253 1098  174985
    probable 56466043 1509  2739844
    total pp 61424296 1476  2914829
north mara   proven 11498697 2787  1030355
    probable 24097170 3168  2454215
    total pp 35595867 3045  3484570
tulawaka 70   proven 44035 3958  5604
    probable 121681 14934  58426
    total pp 165716 12018  64030
total mine gold reserves   proven 17730669 2873  1637501
    probable 107644119 4467  15457833
    total pp 125374789 4241  17095334
         
contained copper reported within gold reserves         
mine   classification   tonnes   grade cu    contained culbs 
bulyanhulu   proven 1229684 0372   10079916
    probable 26959226 0683   405878571
    total 28188910 0669   415958486
buzwagi   proven 4958253 0069   7509867
    probable 56466043 0118   146571979
    total 61424296 0114   154081846
total copper reported within gold reserves   proven 6187937 0129   17589783
    probable 83425268 0300   552450549
     total 89613206 0289   570040332
        
contained silver reported within gold reserves       
mine   classification   tonnes   grade ag gt   contained ag oz 
bulyanhulu   proven 1229684 7092   280366
    probable 26959226 9490   8225333
    total pp 28188910 9385   8505699
        
mine gold resource measured and indicated exclusive of reserves   
mine  classification   tonnes   grade au gt   contained au oz 
bulyanhulu  measured – –   –
   indicated 17765891 5283   3017771
   total mi 17765891 5283   3017771
buzwagi  measured 135125 1383   6008
   indicated 35355056 1123   1276168
   total mi 35490181 1124   1282176
north mara  measured 2727486 2101   184202
   indicated 13262160 2944   1255435
   total mi 15989647 2800   1439638
tulawaka 70  measured – –   –
   indicated 613493 5458   107654
   total mi 613493 5458   107654
  overview performance governance financial 
statements
shareholder 
information
115
ann ual report and acco unts 2011
reserves and resources continued 
 
mine gold reserves 
mine   classification   tonnes   grade au gt  contained au oz 
bulyanhulu   proven 1229684 10789  426557
    probable 26959226 11774  10205349
    total pp 28188910 11731  10631905
buzwagi   proven 4958253 1098  174985
    probable 56466043 1509  2739844
    total pp 61424296 1476  2914829
north mara   proven 11498697 2787  1030355
    probable 24097170 3168  2454215
    total pp 35595867 3045  3484570
tulawaka 70   proven 44035 3958  5604
    probable 121681 14934  58426
    total pp 165716 12018  64030
total mine gold reserves   proven 17730669 2873  1637501
    probable 107644119 4467  15457833
    total pp 125374789 4241  17095334
         
contained copper reported within gold reserves         
mine   classification   tonnes   grade cu    contained culbs 
bulyanhulu   proven 1229684 0372   10079916
    probable 26959226 0683   405878571
    total 28188910 0669   415958486
buzwagi   proven 4958253 0069   7509867
    probable 56466043 0118   146571979
    total 61424296 0114   154081846
total copper reported within gold reserves   proven 6187937 0129   17589783
    probable 83425268 0300   552450549
     total 89613206 0289   570040332
        
contained silver reported within gold reserves       
mine   classification   tonnes   grade ag gt   contained ag oz 
bulyanhulu   proven 1229684 7092   280366
    probable 26959226 9490   8225333
    total pp 28188910 9385   8505699
        
mine gold resource measured and indicated exclusive of reserves   
mine  classification   tonnes   grade au gt   contained au oz 
bulyanhulu  measured – –   –
   indicated 17765891 5283   3017771
   total mi 17765891 5283   3017771
buzwagi  measured 135125 1383   6008
   indicated 35355056 1123   1276168
   total mi 35490181 1124   1282176
north mara  measured 2727486 2101   184202
   indicated 13262160 2944   1255435
   total mi 15989647 2800   1439638
tulawaka 70  measured – –   –
   indicated 613493 5458   107654
   total mi 613493 5458   107654
 
 
 
mine gold resource measured and indicated exclusive of reserves continued
mine  classification   tonnes   grade au gt   contained au oz 
total mine resource mi measured 2862611   2067 190210
  indicated 66996601   2626 5657029
  total mi 69859212   2603 5847239
      
contained copper reported within gold resources     
mine  classification   tonnes   grade cu    contained culbs 
bulyanhulu measured –  – –
  indicated 17765891  0315 123549858
  total mi 17765891  0315 123549858
buzwagi measured 135125  0103 307802
  indicated 35355056  0099 76782345
  total mi 35490181  0099 77090147
total copper reported within gold resources measured 135125  0103 307802
  indicated 53120947  0171 200332202
  total mi 53256072  0171 200640005
    
contained silver reported within gold resource   
mine  classification  tonnes  grade ag gt  contained ag oz 
bulyanhulu measured –  – –
  indicated 17765891  4332 2474388
  total mi 17765891  4332 2474388
    
mine gold inferred resource    
mine  classification  tonnes  grade au gt  contained au oz 
bulyanhulu inferred 8318258  12003 3210067
buzwagi inferred 10299241  1156 382757
north mara inferred 1557870  2557 128077
tulawaka 70 inferred 116446  5723 21426
total mine inferred resource total inferred 20291814  5736 3742327
    
contained copper reported within inferred gold resources
mine  classification  tonnes  grade cu   contained culbs 
bulyanhulu inferred 8318258  0717 131535037
buzwagi inferred 10299241  0089 20119417
total copper reported within gold resources total inferred 18617498  0369 151654455
    
contained silver reported within inferred gold resource
mine  classification  tonnes  grade ag gt  contained ag oz 
bulyanhulu inferred 8318258  9859 2636713
  116
www africanbarrickgoldcom
financial statements
independent auditors’ report on the consolidated  
financial statements  117
c onsolidated financial statements 118
c onsolidated income statement 118
c onsolidated statement of comprehensive income 118
c onsolidated balance sheet 119
c onsolidated statement of changes in equity 120
c onsolidated cash flow statement 121
n otes to the consolidated financial statements 122
g eneral information 122
significant accounting policies 123
s egment reporting 138
r evenue 140
c ost of sales 140
e mployee benefits 141
e xploration and evaluation 141
o ther charges 142
a uditors’ remuneration 142
f inance income and finance expense 143
t ax expense 143
e arnings per share 144
d ividend 144
c ash flow – other items 144
inventories 145
t rade and other current assets 146
c ash and cash equivalents 146
property plant and equipment 147
g oodwill and intangible assets 148
d eferred tax assets and liabilities 149
o ther assets 150
share capital and share premium 150
stock based compensation 150
t rade and other payables 152
provisions 152
o ther liabilities 153
f inancial assets and liabilities 153
d erivative financial instruments 154
f inancial risk management 156
o perating lease arrangements 160
c ommitments and contingencies 161
r elated party balances and transactions 162
prospecting licences 163
business combination 164
post balance sheet events 164
detailed financial information for the year ended 31 december 2011
independent auditors’ report on the parent  
company financial statements 165
parent company financial statements 166
parent company income statement 166
parent company statement of comprehensive income 166
parent company balance sheet 167
parent company statement of changes in equity 168
parent company cash flow statement 169
n otes to the parent company financial statements 170 overview performance governance f inanc ial 
s tatements
shareholder 
information
117
ann ual report and acco unts 2011
independent auditors’ report to the members of  
african barrick gold plc 
 
we have audited the group financial statements of african barrick  
gold plc for the year ended 31 december 2011 which comprise  
the consolidated income statement consolidated statement of 
comprehensive income consolidated balance sheet consolidated 
statement of changes in equity consolidated cash flow statement  
and the related notes the financial reporting framework that has  
been applied in their preparation is applicable law and international 
financial reporting standards ifrss as adopted by the  
european union  
respective responsibilities of directors and auditors  
as explained more fully in the directors’ responsibilities statement  
set out on page 99 the directors are responsible for the preparation  
of the group financial statements and for being satisfied that they  
give a true and fair view our responsibility is to audit and express  
an opinion on the group financial statements in accordance with 
applicable law and international standards on auditing uk and 
ireland those standards require us to comply with the auditing 
practices board’s ethical standards for auditors  
this report including the opinions has been prepared for and only  
for the company’s members as a body in accordance with chapter 3  
of part 16 of the companies act 2006 and for no other purpose  
we do not in giving these opinions accept or assume responsibility  
for any other purpose or to any other person to whom this report is 
shown or into whose hands it may come save where expressly agreed 
by our prior consent in writing 
scope of the audit of the financial statements  
an audit involves obtaining evidence about the amounts and 
disclosures in the financial statements sufficient to give reasonable 
assurance that the financial statements are free from material 
misstatement whether caused by fraud or error this includes an 
assessment of whether the accounting policies are appropriate to  
the group’s circumstances and have been consistently applied and 
adequately disclosed the reasonableness of significant accounting 
estimates made by the directors and the overall presentation of  
the financial statements in addition we read all the financial and  
nonfinancial information in the annual report to identify material 
inconsistencies with the audited financial statements if we become 
aware of any apparent material misstatements or inconsistencies we 
consider the implications for our report 
opinion on financial statements  
in our opinion the group financial statements  
• give a true and fair view of the st ate of the group’s affairs as at  
31 december 2011 and of its profit and cash flows for the year  
then ended  
• have been properly prepared in accordance with ifrss as adopted  
by the european union and  
• have been prepared in accordance with the requirements of the 
companies act 2006 and article 4 of the las regulation  
opinion on other matter prescribed by the companies  
act 2006  
in our opinion the information given in the directors’ report for the 
financial year for which the group financial statements are prepared  
is consistent with the group financial statements 
matters on which we are required to report by exception  
we have nothing to report in respect of the following  
under the companies act 2006 we are required to report to you if  
in our opinion  
• certain disclosures of directors’ remuneration specified by law  
are not made or  
• we have not received all the information and explanations we  
require for our audit or 
• a corporate governance statement has not been prepared by  
the parent company 
under the listing rules we are required to review  
• the directors’ statement set out on page 96 in relation to 
going concern  
• the part of the corporate governance report relating to  
the company’s compliance with the nine provisions of the  
“uk corporate governance code” specified for our review and  
• certain elements of the report to shareholders by the board  
on directors’ remuneration 
other matter  
we have reported separately on the company financial statements  
of african barrick gold plc for the year ended 31 december 2011  
and on the information in the remuneration report that is described  
as having been audited  
 
jason burkitt 
senior statutory auditor 
for and on behalf of pricewaterhousecoopers llp 
chartered accountants and statutory auditors 
london 
7 march 2012 
notes 
a the maintenance and integrity of the african barrick gold plc website is the  
responsibility of the directors the work carried out by the auditors does not involve 
consideration of these matters and accordingly the auditors accept no responsibility  
for any changes that may have occurred to the financial statements since they were 
initially presented on the website 
b legislation in the united kingdom governing the preparation and dissemination 
of financial statements may differ from legislation in other jurisdictions  118
www africanbarrickgoldcom
consolidated income statement 
 
 
in thousands of united states dollars  notes  
for the year ended 
31 december 
2011  
for the year ended 
31 december 
2010 
revenue  4  1217915 975021 
cost of sales note 2a 5  704114 589039
gross profit    513801 385982 
corporate administration   50505 35436
exploration and evaluation costs 7  30339 14861
corporate social responsibility expenses note 2a  7376 3467
other charges note 2a 8  15639 22566
profit before net finance expense and taxation    409942 309652 
     
finance income 10  1484 1202 
finance expense 10  8725 1777
     7241 575
profit before taxation    402701 309077 
tax expense 11  117924 86471
net profit for the period    284777 222606 
net profit attributable to    
– noncontrolling interests    9882 4503 
– owners of the parent    274895 218103 
   
earnings per share   
– basic earnings per share cents  12  670 532 
– diluted earnings per share cents 12  670 532 
consolidated statement of comprehensive income 
in thousands of united states dollars   
for the year ended 
 31 december 
2011  
for the year ended 
31 december 
2010 
net profit for the period  284777 222606
other comprehensive income for the period   – –
total comprehensive income for the period  284777 222606
attributed to  
– noncontrolling interests  9882 4503 
– owners of the parent   274895 218103
the notes on pages 122 to 164 are an integral part of these consolidated financial statements 
  overview performance governance f inanc ial 
s tatements
shareholder 
information
119
ann ual report and acco unts 2011
consolidated income statement 
 
 
in thousands of united states dollars  notes  
for the year ended 
31 december 
2011  
for the year ended 
31 december 
2010 
revenue  4  1217915 975021 
cost of sales note 2a 5  704114 589039
gross profit    513801 385982 
corporate administration   50505 35436
exploration and evaluation costs 7  30339 14861
corporate social responsibility expenses note 2a  7376 3467
other charges note 2a 8  15639 22566
profit before net finance expense and taxation    409942 309652 
     
finance income 10  1484 1202 
finance expense 10  8725 1777
     7241 575
profit before taxation    402701 309077 
tax expense 11  117924 86471
net profit for the period    284777 222606 
net profit attributable to    
– noncontrolling interests    9882 4503 
– owners of the parent    274895 218103 
   
earnings per share   
– basic earnings per share cents  12  670 532 
– diluted earnings per share cents 12  670 532 
consolidated statement of comprehensive income 
in thousands of united states dollars   
for the year ended 
 31 december 
2011  
for the year ended 
31 december 
2010 
net profit for the period  284777 222606
other comprehensive income for the period   – –
total comprehensive income for the period  284777 222606
attributed to  
– noncontrolling interests  9882 4503 
– owners of the parent   274895 218103
the notes on pages 122 to 164 are an integral part of these consolidated financial statements 
 
consolidated balance sheet 
 
 
in thousands of united states dollars notes  
as at 
31 december 
2011 
as at 
31 december 
2010 
assets   
noncurrent assets   
goodwill and intangible assets 19  258513 258513 
property plant and equipment  18  1823247 1615118 
deferred tax assets 20  55529 121269
noncurrent portion of inventory 15  78022 69122
derivative financial instruments 28  213 –
other assets 21  110658 104458
   2326182 2168480
current assets   
inventories 15  316947 227974
trade and other receivables 16  29858 59214
derivative financial instruments 28  4050 –
other current assets  16  33271 70428
cash and cash equivalents 17  584154 401012
    968280 758628
total assets    3294462 2927108
equity and liabilities   
share capital and share premium 22  929199 929199
other reserves   1832032 1584125
total owners’ equity   2761231 2513324
noncontrolling interests   37473 29761
total equity    2798704 2543085
noncurrent liabilities   
deferred tax liabilities 20  149544 136185
derivative financial instruments 28  56 1754 
provisions 25  157582 108944 
other noncurrent liabilities 26  18988 7483
    326170 254366
current liabilities   
trade and other payables 24  161916 119961 
derivative financial instruments 28  58 1904 
provisions 25  1034 4000 
other current liabilities 26  6580 3792 
     169588 129657
total liabilities    495758 384023
total equity and liabilities    3294462 2927108
the notes on pages 122 to 164 are an integral part of these consolidated financial statements 
the consolidated financial statements on pages 118 to 164 were authorised for issue by the board of directors on 7 march 2012 and were signed  
on its behalf 
 
greg hawkins 
chief executive officer  120
www africanbarrickgoldcom
consolidated statement of changes in equity 
 
 
in thousands of united states dollars  notes  share capital  share premium  
contributed 
surplusother 
reserve  
stock option 
reserve  
retained 
earnings  
total owners’ 
equity  
total 
non controlling 
interests  total equity 
balance at 1 january 2010    –  – 633752 – 3170 636922  20493 657415
issuance of shares to bgc     1991  1989138 1991129 – – –  – –
capital reduction    –  1989138 1989138 – – –  – –
bonus issue to bgc    43805  – 43805 – – –  – –
total comprehensive income 
for the period    –  – – – 218103 218103  4503 222606
special dividends    –  – 258680 – – 258680  – 258680
conversion to contributed  
surplus     –  – 1039498 – – 1039498  – 1039498
share issuance     16301  921035 – – – 937336  – 937336
transaction costs    –  53933 – – – 53933  – 53933
interim dividend    –  – – – 6562 6562  – 6562
stock option grants    –  – – 640 – 640  – 640
distributions from  
noncontrolling interests    –  – – – – –  4765 4765
balance at 31 december 2010    62097   867102 1368774 640 214711 2513324   29761 2543085 
total comprehensive income 
for the period    –  – – – 274895 274895  9882 284777
conversion to contributed  
surplus     –  – 61 – – 61  – 61
dividends to equity holders of 
the company  13  –  – – – 28328 28328  – 28328
stock option grants    –  – – 1401 – 1401  – 1401
distributions to  
noncontrolling interests    –  – – – – –  2170 2170
balance at 31 december 2011    62097  867102 1368713 2041 461278 2761231  37473 2798704
the notes on pages 122 to 164 are an integral part of these consolidated financial statements 
  overview performance governance f inanc ial 
s tatements
shareholder 
information
121
ann ual report and acco unts 2011
consolidated statement of changes in equity 
 
 
in thousands of united states dollars  notes  share capital  share premium  
contributed 
surplusother 
reserve  
stock option 
reserve  
retained 
earnings  
total owners’ 
equity  
total 
non controlling 
interests  total equity 
balance at 1 january 2010    –  – 633752 – 3170 636922  20493 657415
issuance of shares to bgc     1991  1989138 1991129 – – –  – –
capital reduction    –  1989138 1989138 – – –  – –
bonus issue to bgc    43805  – 43805 – – –  – –
total comprehensive income 
for the period    –  – – – 218103 218103  4503 222606
special dividends    –  – 258680 – – 258680  – 258680
conversion to contributed  
surplus     –  – 1039498 – – 1039498  – 1039498
share issuance     16301  921035 – – – 937336  – 937336
transaction costs    –  53933 – – – 53933  – 53933
interim dividend    –  – – – 6562 6562  – 6562
stock option grants    –  – – 640 – 640  – 640
distributions from  
noncontrolling interests    –  – – – – –  4765 4765
balance at 31 december 2010    62097   867102 1368774 640 214711 2513324   29761 2543085 
total comprehensive income 
for the period    –  – – – 274895 274895  9882 284777
conversion to contributed  
surplus     –  – 61 – – 61  – 61
dividends to equity holders of 
the company  13  –  – – – 28328 28328  – 28328
stock option grants    –  – – 1401 – 1401  – 1401
distributions to  
noncontrolling interests    –  – – – – –  2170 2170
balance at 31 december 2011    62097  867102 1368713 2041 461278 2761231  37473 2798704
the notes on pages 122 to 164 are an integral part of these consolidated financial statements 
 
consolidated cash flow statement 
 
 
in thousands of united states dollars notes  
for the year ended 
31 december 
2011 
for the year ended 
31 december 
2010 
cash flows from operating activities    
net profit for the period    284777 222606 
adjustments for    
taxation 11   117924 86471 
depreciation and amortisation 18   135683 107072 
finance items    7241 575 
loss on disposal of property plant and equipment 8   179 90 
working capital adjustments 14  42880 84248
other noncash items 14  704 11785 
cash generated from operations before interest and tax   502220 344351 
finance income  10  1484 1202 
finance expenses 10  5381 412
income tax paid 11  – –
net cash generated by operating activities    498323 345141 
     
cash flows from investing activities    
purchase of property plant and equipment note 2a   273207 196443
investments in other assets    8645 2592
acquisition of subsidiary net of cash acquired    – 63109
other investing activities note 2a 14  320 13411
net cash used in investing activities    281532 275555
   
cash flows from financing activities    
repayment of related party debt funding 32  – 575100
share issuance – ipo net of transaction costs    – 865366 
increase in contributed surplus    – 231255 
special dividend    – 252981
dividends paid  13  28328 6562
distributions to noncontrolling interest holders    2170 –
finance lease instalments    2184 –
net cash used ingenerated by financing activities    32682 261978 
     
net increase in cash and cash equivalents    184109 331564 
net foreign exchange difference    967 278
cash and cash equivalents at 1 january    401012 69726 
cash and cash equivalents at 31 december   584154 401012
the notes on pages 122 to 164 are an integral part of these consolidated financial statements 122
www africanbarrickgoldcom
notes to the consolidated financial statements 
 
1 general information 
african barrick gold plc the “company” was incorporated on 12 january 2010 and reregistered as a public limited company on 1 2 march 2010 
under the companies act 2006 it is registered in england and wales with registered number 7123187 
on 24 march 2010 the company’s shares were admitted to the official list of the united kingdom listing authority “ukla” and t o trading  
on the main market of the london stock exchange hereafter referred to as the initial public offering “ipo” the address of i ts registered office  
is 6 st james’s place london sw1a 1np united kingdom 
barrick gold corporation “bgc” currently owns approximately 739 of the shares of the company and is the ultimate parent and controlling 
party of the group 
in preparation for the ipo bgc conducted a reorganisation which was completed on 22 february 2010 whereby the companies comp rising the 
african regional business unit of bgc were reorganised under the company the “preipo reorganisation” as such prior to 22 f ebruary 2010 
the company did not control all of the entities collectively th e “group” it acquired pursuant to the preipo reorganisation 
the consolidated financial statements for the year ended 31 dece mber 2011 were approved for issue by the board of directors of the company  
on 7 march 2012  
the principal activities of the subsidiaries and joint ventures included in the consolidated financial statements are as follows 
company  principal activity  country of incorporation  relationship  
equity interest 
at 31 december 
 2011  
equity interest 
at 31 december 
2010 
african barrick gold plc  holding company uk   100 100
buk holdco ltd  holding company uk subsidiary 100 100
1816962 ontario inc  holding company canada subsidiary 100 100
barbco one ltd  group finance company barbados subsidiary 100 100
bapl holding ltd  holding company mauritius subsidiary 100 100
cayco tz ltd  holding company cayman islands subsidiary 100 100
barrick exploration africa ltd “beal”  exploration tanzania subsidiary 100 100
matinje exploration ltd  exploration tanzania subsidiary 75 75
itobo exploration ltd  exploration tanzania subsidiary 75 75
mkumi exploration ltd   exploration tanzania subsidiary 80 80
sekenke exploration ltd  exploration tanzania associate 20 20
nyanzaga exploration ltd  exploration tanzania subsidiary 100 100
barrick tanzanian holdings ltd  exploration cayman islands subsidiary 100 100
barisun exploration ltd   exploration tanzania subsidiary 75 75
safari exploration ltd   exploration tanzania subsidiary 75 75
prime gold exploration ltd  exploration tanzania subsidiary 75 75
kasubuya gold exploration ltd  exploration tanzania subsidiary 60 60
kmcl holdings ltd  exploration cayman islands subsidiary 100 100
bulyanhulu gold mine ltd   operating gold mine tanzania subsidiary 100 100
north mara gold mine ltd   operating gold mine tanzania subsidiary 100 100
pangea goldfields inc   holding company canada subsidiary 100 100
pangea minerals ltd  operating gold mine tanzania subsidiary 100 100
1051694 ontario inc  holding company canada subsidiary 100 100
barrick africa proprietary ltd   shared services south africa subsidiary 100 100
east africa gold mines ltd  holding company australia subsidiary 100 100
tusker gold ltd  holding company australia subsidiary 100 100
indago autan proprietary ltd

  holding company australia subsidiary 100 100
idg aurum holdings ltd

  holding company tanzania subsidiary 100 100
idg aurum tanzania ltd

  holding company tanzania subsidiary 100 100
idg kitongo tanzania ltd

  dormant company tanzania subsidiary 100 100
vulcan resources tanzania ltd

  dormant company tanzania subsidiary 100 100
 
   overview performance governance f inanc ial 
s tatements
shareholder 
information
123
ann ual report and acco unts 2011
notes to the consolidated financial statements 
 
1 general information 
african barrick gold plc the “company” was incorporated on 12 january 2010 and reregistered as a public limited company on 1 2 march 2010 
under the companies act 2006 it is registered in england and wales with registered number 7123187 
on 24 march 2010 the company’s shares were admitted to the official list of the united kingdom listing authority “ukla” and t o trading  
on the main market of the london stock exchange hereafter referred to as the initial public offering “ipo” the address of i ts registered office  
is 6 st james’s place london sw1a 1np united kingdom 
barrick gold corporation “bgc” currently owns approximately 739 of the shares of the company and is the ultimate parent and controlling 
party of the group 
in preparation for the ipo bgc conducted a reorganisation which was completed on 22 february 2010 whereby the companies comp rising the 
african regional business unit of bgc were reorganised under the company the “preipo reorganisation” as such prior to 22 f ebruary 2010 
the company did not control all of the entities collectively th e “group” it acquired pursuant to the preipo reorganisation 
the consolidated financial statements for the year ended 31 dece mber 2011 were approved for issue by the board of directors of the company  
on 7 march 2012  
the principal activities of the subsidiaries and joint ventures included in the consolidated financial statements are as follows 
company  principal activity  country of incorporation  relationship  
equity interest 
at 31 december 
 2011  
equity interest 
at 31 december 
2010 
african barrick gold plc  holding company uk   100 100
buk holdco ltd  holding company uk subsidiary 100 100
1816962 ontario inc  holding company canada subsidiary 100 100
barbco one ltd  group finance company barbados subsidiary 100 100
bapl holding ltd  holding company mauritius subsidiary 100 100
cayco tz ltd  holding company cayman islands subsidiary 100 100
barrick exploration africa ltd “beal”  exploration tanzania subsidiary 100 100
matinje exploration ltd  exploration tanzania subsidiary 75 75
itobo exploration ltd  exploration tanzania subsidiary 75 75
mkumi exploration ltd   exploration tanzania subsidiary 80 80
sekenke exploration ltd  exploration tanzania associate 20 20
nyanzaga exploration ltd  exploration tanzania subsidiary 100 100
barrick tanzanian holdings ltd  exploration cayman islands subsidiary 100 100
barisun exploration ltd   exploration tanzania subsidiary 75 75
safari exploration ltd   exploration tanzania subsidiary 75 75
prime gold exploration ltd  exploration tanzania subsidiary 75 75
kasubuya gold exploration ltd  exploration tanzania subsidiary 60 60
kmcl holdings ltd  exploration cayman islands subsidiary 100 100
bulyanhulu gold mine ltd   operating gold mine tanzania subsidiary 100 100
north mara gold mine ltd   operating gold mine tanzania subsidiary 100 100
pangea goldfields inc   holding company canada subsidiary 100 100
pangea minerals ltd  operating gold mine tanzania subsidiary 100 100
1051694 ontario inc  holding company canada subsidiary 100 100
barrick africa proprietary ltd   shared services south africa subsidiary 100 100
east africa gold mines ltd  holding company australia subsidiary 100 100
tusker gold ltd  holding company australia subsidiary 100 100
indago autan proprietary ltd

  holding company australia subsidiary 100 100
idg aurum holdings ltd

  holding company tanzania subsidiary 100 100
idg aurum tanzania ltd

  holding company tanzania subsidiary 100 100
idg kitongo tanzania ltd

  dormant company tanzania subsidiary 100 100
vulcan resources tanzania ltd

  dormant company tanzania subsidiary 100 100
 
  
 
 
 
company  principal activity country of incorporation relationship  
equity interest 
at 31 december 
2011 
equity interest 
at 31 december 
2010 
aptian resources tanzania ltd

  dormant company tanzania subsidiary  100 100
subsahara resources tanzania ltd

  exploration tanzania subsidiary  100 100
kahama project joint venture  exploration tanzania joint venture  49 49
nyakafuru project joint venture  exploration tanzania joint venture  51 51
 june yearend 
there are no restrictions on the ability of subsidiaries to transfer funds to the parent in the form of cash dividends or to re pay loans or advances  
the joint ventures included in the table above are currently immaterial to the group 
2 significant accounting policies 
the principal accounting policies applied in the preparation of these consolidated financial statements are set out below these policies have been 
consistently applied to all the years presented unless otherwise stated 
a basis of preparation 
the group’s consolidated financial statements have been prepared in accordance with international financial reporting standards as adopted by 
the european union ifrs international financial reporting interpretations committee ifric interpretation and those parts o f the companies 
act 2006 applicable to companies reporting under ifrs 
the company became the holding company for the group pursuant to the preipo reorganisation completed on 22 february 2010 as d etailed in 
note 1 as this was a reorganisation of businesses under common control the consolidated financial statements for the year ended 31 december 
2010 have been prepared on a basis that combines the results and assets and liabilities of each of the companies constituting the group the pooling 
of interest method of accounting 
for the periods prior to the preipo reorganisation consolidated financial statements were not prepared for the group the accompanying 
consolidated financial statements present the results of the company and its subsidiaries as if the group had been in existence throughout the 
period presented and as if the preipo reorganisation had occurred as at 1 january 2010 
the consolidated financial statements have been prepared under the historical cost convention basis as modified by the revalua tion of financial 
assets and financial liabilities including derivative instruments at fair value through profit or loss  
the consolidated financial statements are presented in united states dollars us and all values are rounded to the nearest thousand us’000 
except when otherwise indicated  
the group’s primary business is the mining processing and sale of gold the group has four operating mines located in tanzania  the group  
also has a portfolio of exploration projects located across africa 
where a change in the presentational format between the prior year and current year financial statements has been made during the period 
comparative figures have been restated accordingly the following presentational changes were made during the current year 
• corporate social responsibility expenses previously included in other charges have been separately disclosed on the face on the consolidated 
income statement 
• the movement in the rehabilitation liability previously included in the investing cash flows of the cash flow statement has bee n reclassified  
the movement and the corresponding increase in property plant and equipment has been excluded from the cash flow statement due to  
the fact that it is a noncash movement the nature of the change is reclassification and does not affect the net cash used in investing activities 
• financial liabilities previously excluded current liabilities and are now presented including both noncurrent and current liab ilities note 27 
• payroll accruals and accrued bonuses previously included in accrued expenses have been reclassified to payrollrelated payables  note 24 
• the segment capital expenditure has been expanded in the current year and restated in the prior year to include expenditure on capitalised 
development as a separate category note 3 
• direct mining costs included in cost of sales have been restated to split this cost between third party smelting costs and othe r direct mining costs 
note 5 
the preparation of financial statements in conformity with ifrs requires the use of certain critical accounting estimates it also requires 
management to exercise its judgement in the process of applying the group’s accounting policies the areas involving a higher degree of judgement 
or complexity or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in note 2e 
   124
www africanbarrickgoldcom
notes to the consolidated financial statements continued  
 
2 significant accounting policies continued 
b new and amended standards adopted by the group 
there are no new ifrss or ifric interpretations that are effective for the first time for the financial year beginning on or after 1 january 2011 that 
would be expected to have a material impact on the group 
c new and amended standards and interpretations mandatory for the first time for the financial year beginning 1 january 2011 but not 
currently relevant to the group although they may affect the accounting for future transactions and events  
the following standards and amendments to existing standards have been published and are mandatory for the group’s accounting p eriods 
beginning on or after 1 january 2011 or later period s but are currently not relevant to the group 
• amendment to ias 32 “financial instruments presentation – classi fication of rights issues” the standard was amended to allow rights  
options or warrants to acquire a fixed number of the entity’s own equity instruments for a fixed amount of any currency to be c lassified  
as equity instruments provided the entity offers the rights options or warrants pro rata to all of its existing owners of the same class of its  
own nonderivative equity instruments 
• ifric 19 “extinguishing financial liabilities with equity instruments” this interpretation clarifies the requirements of ifrs s when an entity 
renegotiates the terms of a financial liability with its creditor and the creditor agrees to accept the entity’s shares or other equity instruments  
to settle the financial liability fully or partially 
• amendment to ifrs 1 “firsttime adoption of ifrs – limited exemption from comparative ifrs 7 disclosures for firsttime adopters”  
provides the same relief to firsttime adopters as was given to current users of ifrss upon adoption of the amendments to ifrs 7  
also clarifies the transition provisions of the amendments to ifrs 7 
• ias 24 “related party disclosures” revised 2009 amends the definition of a related party and modifies certain relatedparty disclosure 
requirements for governmentrelated entities 
• amendment to ifric 14 “ias 19 – the limit on a defined benefit asset minimum funding requirements and their interaction” the amendment 
removes unintended consequences arising from the treatment of prepayments where there is a minimum funding requirement results in  
prepayments of contributions in certain circumstances being recognised as an asset rather than an expense 
d new standards amendments and interpretations issued but not effective for the financial year beginning 1 january 2011 and not  
early adopted 
the group’s and parent entity’s assessment of the impact of these new standards and interpretations is set out below 
• ifric 20 “stripping costs in the production phase of a surface mine” this interpretation addr esses the following issues recognition of 
production stripping costs as an asset initial measurement of the stripping activity asset and subsequent measurement of the stripping activity 
asset this interpretation considers when and how to account fo r the benefit arising from the stripping activity as well as how to measure these 
benefits both initially and subsequently the interpretation is effective from 1 january 2013 the group is yet to assess the full impact of ifric 20 
• amendments to ifrs 7 “financial instruments disclosures” on derecognition this amendment will promote transparency in the re porting of 
transfer transactions and improve users’ understanding of the risk exposures relating to transfers of financial assets and the effect of those risks on 
an entity’s financial position particularly those involving securitisation of financial assets the standard is applicable for financial periods starting 
1 july 2011 but is available for early adoption subject to eu endorsement it is not expected to have a material impact on the group’s or parent 
entity’s financial statements 
• amendment to ifrs 1 “first time adoption” on fixed dates and hyperinflation these amendments include two changes to ifrs 1 “firsttime 
adoption of ifrs” the first replaces references to a fixed date of 1 january 2004 with “the date of transition to ifrss” thus eliminating the need 
for entities adopting ifrss for the first time to restate dereco gnition transactions that occurred before the date of transition to ifrss the second 
amendment provides guidance on how an entity should resume presen ting financial statements in accordance with ifrss after a period when the 
entity was unable to comply with ifrss because its functional currency was subject to severe hyperinflation the amendment is a pplicable from  
1 july 2011 but is not expected to have any impact on the group’s or the parent entity’s financial statements 
• amendment to ias 12 “income taxes” on deferred tax ias 12 “income taxes” currently requires an entity to measure the deferred tax  
relating to an asset depending on whether the entity expects to recover the carrying amount of the asset through use or sale i t can be difficult  
and subjective to assess whether recovery will be through use or through sale when the asset is measured using the fair value m odel in ias 40 
“investment property” this amendment therefore introduces an exception to the existing principle for the measurement of deferr ed tax assets  
or liabilities arising on investment property measured at fair value as a result of the amendments sic 21 “income taxes – recovery of revalued 
nondepreciable assets” will no longer apply to investment properties carried at fair value the amendments also incorporate into ias 12 the 
remaining guidance previously contained in sic 21 which is withdrawn the amendment is effective from 1 january 2012 but is not expected  
to have any impact on the group’s or the parent entity’s financial statements 
   overview performance governance f inanc ial 
s tatements
shareholder 
information
125
ann ual report and acco unts 2011
notes to the consolidated financial statements continued  
 
2 significant accounting policies continued 
b new and amended standards adopted by the group 
there are no new ifrss or ifric interpretations that are effective for the first time for the financial year beginning on or after 1 january 2011 that 
would be expected to have a material impact on the group 
c new and amended standards and interpretations mandatory for the first time for the financial year beginning 1 january 2011 but not 
currently relevant to the group although they may affect the accounting for future transactions and events  
the following standards and amendments to existing standards have been published and are mandatory for the group’s accounting p eriods 
beginning on or after 1 january 2011 or later period s but are currently not relevant to the group 
• amendment to ias 32 “financial instruments presentation – classi fication of rights issues” the standard was amended to allow rights  
options or warrants to acquire a fixed number of the entity’s own equity instruments for a fixed amount of any currency to be c lassified  
as equity instruments provided the entity offers the rights options or warrants pro rata to all of its existing owners of the same class of its  
own nonderivative equity instruments 
• ifric 19 “extinguishing financial liabilities with equity instruments” this interpretation clarifies the requirements of ifrs s when an entity 
renegotiates the terms of a financial liability with its creditor and the creditor agrees to accept the entity’s shares or other equity instruments  
to settle the financial liability fully or partially 
• amendment to ifrs 1 “firsttime adoption of ifrs – limited exemption from comparative ifrs 7 disclosures for firsttime adopters”  
provides the same relief to firsttime adopters as was given to current users of ifrss upon adoption of the amendments to ifrs 7  
also clarifies the transition provisions of the amendments to ifrs 7 
• ias 24 “related party disclosures” revised 2009 amends the definition of a related party and modifies certain relatedparty disclosure 
requirements for governmentrelated entities 
• amendment to ifric 14 “ias 19 – the limit on a defined benefit asset minimum funding requirements and their interaction” the amendment 
removes unintended consequences arising from the treatment of prepayments where there is a minimum funding requirement results in  
prepayments of contributions in certain circumstances being recognised as an asset rather than an expense 
d new standards amendments and interpretations issued but not effective for the financial year beginning 1 january 2011 and not  
early adopted 
the group’s and parent entity’s assessment of the impact of these new standards and interpretations is set out below 
• ifric 20 “stripping costs in the production phase of a surface mine” this interpretation addr esses the following issues recognition of 
production stripping costs as an asset initial measurement of the stripping activity asset and subsequent measurement of the stripping activity 
asset this interpretation considers when and how to account fo r the benefit arising from the stripping activity as well as how to measure these 
benefits both initially and subsequently the interpretation is effective from 1 january 2013 the group is yet to assess the full impact of ifric 20 
• amendments to ifrs 7 “financial instruments disclosures” on derecognition this amendment will promote transparency in the re porting of 
transfer transactions and improve users’ understanding of the risk exposures relating to transfers of financial assets and the effect of those risks on 
an entity’s financial position particularly those involving securitisation of financial assets the standard is applicable for financial periods starting 
1 july 2011 but is available for early adoption subject to eu endorsement it is not expected to have a material impact on the group’s or parent 
entity’s financial statements 
• amendment to ifrs 1 “first time adoption” on fixed dates and hyperinflation these amendments include two changes to ifrs 1 “firsttime 
adoption of ifrs” the first replaces references to a fixed date of 1 january 2004 with “the date of transition to ifrss” thus eliminating the need 
for entities adopting ifrss for the first time to restate dereco gnition transactions that occurred before the date of transition to ifrss the second 
amendment provides guidance on how an entity should resume presen ting financial statements in accordance with ifrss after a period when the 
entity was unable to comply with ifrss because its functional currency was subject to severe hyperinflation the amendment is a pplicable from  
1 july 2011 but is not expected to have any impact on the group’s or the parent entity’s financial statements 
• amendment to ias 12 “income taxes” on deferred tax ias 12 “income taxes” currently requires an entity to measure the deferred tax  
relating to an asset depending on whether the entity expects to recover the carrying amount of the asset through use or sale i t can be difficult  
and subjective to assess whether recovery will be through use or through sale when the asset is measured using the fair value m odel in ias 40 
“investment property” this amendment therefore introduces an exception to the existing principle for the measurement of deferr ed tax assets  
or liabilities arising on investment property measured at fair value as a result of the amendments sic 21 “income taxes – recovery of revalued 
nondepreciable assets” will no longer apply to investment properties carried at fair value the amendments also incorporate into ias 12 the 
remaining guidance previously contained in sic 21 which is withdrawn the amendment is effective from 1 january 2012 but is not expected  
to have any impact on the group’s or the parent entity’s financial statements 
  
 
 
• amendment to ias 1 “financial statement presentation” regarding other comprehensive income the main change resulting from thi s amendment 
is a requirement for entities to group items presented in “other comprehensive income” oci on the basis of whether they are potentially 
reclassifiable to profit or loss subsequently reclassification adjustments the amendments do not address which items are presented in oci  
the amendment is effective from 1 july 2012 it is not expected to have a material impact on the group’s or parent entity’s fin ancial statements 
• amendment to ias 19 “employee benefits” these amendments eliminate the corridor approach and calculate finance costs on a net  
funding basis the amendment is effective from 1 january 2013 it is not expected to have a material impact on the group’s or p arent entity’s 
financial statements 
• ifrs 9 “financial instruments” ifrs 9 is the first standard i ssued as part of a wider project to replace ias 39 ifrs 9 retai ns but simplifies the 
mixed measurement model and establishes two primary measurement categories for financial assets amortised cost and fair value the basis of 
classification depends on the entity’s business model and the contractual cash flow characteristics of the financial asset the guidance in ias 39  
on impairment of financial assets and hedge accounting continues to apply the standard is effective from 1 january 2013 the g roup is yet to 
assess ifrs 9’s full impact however initial indications are that the adoption of ifrs 9 will not have a significant impact on the group’s operating 
results or financial position 
• ifrs 10 “consolidated financial statements” the objective of if rs 10 is to establish principles for the presentation and preparation of 
consolidated financial statements when an entity controls one or more other entities an entity that controls one or more other entities  
to present consolidated financial statements defines the principle of control and establishes controls as the basis for conso lidations sets out  
how to apply the principle of control to identify whether an investor controls an investee and therefore must consolidate the i nvestee and sets  
out the accounting requirements for the preparation of consolidated financial statements the standard is effective from 1 janu ary 2013 the 
standard will be applicable to the group but is not expected to have a material impact on the group’s or parent entity’s financial statements 
• ifrs 11 “joint arrangements” ifrs 11 is a more realistic reflection of joint arrangements focusing on the rights and obligati ons of the 
arrangement rather than its legal form there are two types of joint arrangement joint operations and joint ventures joint operations arise  
where a joint operator has rights to the assets and obligations relating to the arrangement and hence accounts for its interest in assets liabilities 
revenue and expenses joint ventures arise where the joint operator has rights to the net assets of the arrangement and hence equity accounts  
for its interest proportional consolidation of joint ventures is no longer allowed the standard is effective from 1 january 2 013 it is not  
expected to have a material impact on the group’s or parent entity’s financial statements 
• ifrs 12 “disclosures of interests in other entities” ifrs 12 includes the disclosure requirements for all forms of interests in other entities 
including joint arrangements associates special purpose vehicles and other off balance sheet vehicles the amendment is effec tive from  
1 january 2013 it is not expected to have a material impact on the group’s or parent entity’s financial statements 
• ifrs 13 “fair value measurement” ifrs 13 aims to improve consistency and reduce complexity by providing a precise definition of fair value 
and a single source of fair value measurement and disclosure requirements for use across ifrss the requirements which are largely aligned 
between ifrss and us gaap do not extend the use of fair value accounting but provide guidance on how it sh ould be applied where its use  
is already required or permitted by other standards within ifrs s or us gaap the amendment is effective from 1 january 2013 th e group  
is yet to assess ifrs 13’s full impact however initial indications are that the adoption of ifrs 13 will not have a significan t impact on the  
group’s operating results or financial position 
• ias 27 revised 2011 “separate financial statements” ias 27 revised 2011 includes the provisions on separate financial sta tements that are left 
after the control provisions of ias 27 have been included in the new ifrs 10 the am endment is effective from 1 january 2013 but is not expected 
to have any impact on the group’s or the parent entity’s financial statements 
• ias 28 revised 2011 “associates and joint ventures” ias 28 revised 2011 includes the requirements for joint ventures as well as associates  
to be equity accounted following the issue of ifrs 11 the amendment is effective from 1 january 2013 it is not expected to ha ve a material 
impact on the group’s or parent entity’s financial statements  
e significant judgements in applying accounting policies and key sources of estimation uncertainty 
many of the amounts included in the consolidated financial sta tements 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 but actual results may differ from the amount s included in the consolidated financial statements the life of mine plans are 
central to a number of key estimates and are approved by the bo ard of directors annually information about such judgements and estimations  
are included in the accounting policies andor notes to the co nsolidated financial statements and the key areas are summarised below 
areas of judgement and key sources of estimation uncertainty that have the most significant effect on the amounts recognised in the consolidated 
financial statements include 
• estimates of the quantities of proven and probable gold reserves – note 2i 
• the capitalisation of production stripping costs – note 2j 
• the capitalisation of exploration and evaluation expenditures – notes 2m and 7 
• 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 – notes 2p 2q 2r 2s 18 and 19   126
www africanbarrickgoldcom
notes to the consolidated financial statements continued  
 
2 significant accounting policies continued 
• 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 – notes 2s and 19 
• the estimated useful lives of tangible and longlived assets and the measurement of depreciation expense – notes 2p and 18 
• property plant and equipment held under finance leases – notes 2p and 18 
• recognition of a provision for environmental rehabilitation and the estimation of the rehabilitation costs and timing of expenditure –  
notes 2v and 25 
• whether to recognise a liability for loss contingencies and the amount of any such provision – notes 2v 25 and 31 
• whether to recognise a provision for accounts receivable – notes 2x 16 and 21 
• recognition of deferred income tax assets amounts recorded for uncertain tax positions the measurement of income tax expense and indirect 
taxes – notes 2z 11 and 20 
• determination of the cost incurred in the productive process of ore stockpiles gold in process gold dorébullion and concentr ate as well as  
the associated net realisable value and the split between the longterm and shortterm portions – note 15 
• determination of fair value of derivative instruments – note 28 and 
• determination of fair value of stock options and cashsettled share based payments – note 23 
f basis of consolidation 
the consolidated financial statements set out the group’s financial position as at 31 december 2011 and 2010 and operating res ults and cash flows 
for the years then ended the consolidated financial statements of the group incorporate the financial statements of the compan y and companies 
controlled by the company its subsidiaries 
subsidiaries are entities over which the company has the control directly or indirect ly to govern the financial and operating policies in order 
to obtain benefits from their activities control is presumed to exist where the company has more than one half of the voting r ights unless it can 
be demonstrated that ownership does not constitute control control does not exist where other pa rties hold veto rights over significant operating 
and financial decisions in assessing control potential voting rights that are currently exercisable or convertible as well as other contractual 
arrangements that enable the company to exercise control are taken into account the consolidated financial statements include all of the assets 
liabilities revenues expenses and cash flows of the company and its subsidiaries after eliminating intercompany transactions as noted above 
accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group subsidiaries 
are included in the consolidated financial statements from the date on which control passed to the group and have been excluded from the date on 
which control transferred out of the group for partlyowned subsidiaries the net assets and net earnings attributable to noncontrolling interests 
are presented as “equity attributable to noncontrolling interests” in the consolidated balance sheet and “net profit attributa ble to noncontrolling 
interests” in the consolidated income statement respectively  
g business combinations 
on acquiring a business the acquisition method of accounting is used whereby the purchase consideration is allocated to the identifiable net  
assets on the basis of fair value at the date of acquisition provisional fair values allocated at a reporting date are finalis ed within 12 months of the 
acquisition date acquisition costs are expensed  
when purchase consideration is contingent on future events the initial cost of the acquisition recorded includes an estimate of the fair value  
of the contingent amounts expected to be payable in the future the cost of the acquisition is adjusted when revised estimates are made  
with corresponding adjustments made to goodwill 
when the cost of acquisition exceeds the fair values of the identifiable net assets the differen ce is treated as purchased goodwill which is reviewed 
for impairment annually or when there is an indication of impairment if the fair value attributable to the group’s share of the identifiable net assets 
exceeds the cost of acquisition the difference is recognised in the income statement 
h foreign currency translation 
the group’s transactions are denominated in a number of different currencies primarily us dollars tanzanian shillings “shill ings” south 
african rands “rands” uk pounds sterling “pounds” and australian dollars the group has liabilities that are primarily de nominated  
in us dollars the us dollar is the company’s and its main subs idiaries’ functional currency as well as the group’s presentation currency 
transactions in currencies other than the us dollar are translated at the exchange rates as at the date of transaction monetar y assets and liabilities 
denominated in currencies other than the us dollar are translated to us dollars at yearend exchange rates all differences that arise are recorded  
in the income statement nonmonetary assets measured at historical cost in a currency other than us dollars are translated usi ng the exchange 
rates at the date of the initial transactions where nonmonetary assets are measured at fair value in a currency other than us dollars they are 
translated into us dollars using the exchange rates on the date when the fair value was determined  
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ann ual report and acco unts 2011
notes to the consolidated financial statements continued  
 
2 significant accounting policies continued 
• 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 – notes 2s and 19 
• the estimated useful lives of tangible and longlived assets and the measurement of depreciation expense – notes 2p and 18 
• property plant and equipment held under finance leases – notes 2p and 18 
• recognition of a provision for environmental rehabilitation and the estimation of the rehabilitation costs and timing of expenditure –  
notes 2v and 25 
• whether to recognise a liability for loss contingencies and the amount of any such provision – notes 2v 25 and 31 
• whether to recognise a provision for accounts receivable – notes 2x 16 and 21 
• recognition of deferred income tax assets amounts recorded for uncertain tax positions the measurement of income tax expense and indirect 
taxes – notes 2z 11 and 20 
• determination of the cost incurred in the productive process of ore stockpiles gold in process gold dorébullion and concentr ate as well as  
the associated net realisable value and the split between the longterm and shortterm portions – note 15 
• determination of fair value of derivative instruments – note 28 and 
• determination of fair value of stock options and cashsettled share based payments – note 23 
f basis of consolidation 
the consolidated financial statements set out the group’s financial position as at 31 december 2011 and 2010 and operating res ults and cash flows 
for the years then ended the consolidated financial statements of the group incorporate the financial statements of the compan y and companies 
controlled by the company its subsidiaries 
subsidiaries are entities over which the company has the control directly or indirect ly to govern the financial and operating policies in order 
to obtain benefits from their activities control is presumed to exist where the company has more than one half of the voting r ights unless it can 
be demonstrated that ownership does not constitute control control does not exist where other pa rties hold veto rights over significant operating 
and financial decisions in assessing control potential voting rights that are currently exercisable or convertible as well as other contractual 
arrangements that enable the company to exercise control are taken into account the consolidated financial statements include all of the assets 
liabilities revenues expenses and cash flows of the company and its subsidiaries after eliminating intercompany transactions as noted above 
accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group subsidiaries 
are included in the consolidated financial statements from the date on which control passed to the group and have been excluded from the date on 
which control transferred out of the group for partlyowned subsidiaries the net assets and net earnings attributable to noncontrolling interests 
are presented as “equity attributable to noncontrolling interests” in the consolidated balance sheet and “net profit attributa ble to noncontrolling 
interests” in the consolidated income statement respectively  
g business combinations 
on acquiring a business the acquisition method of accounting is used whereby the purchase consideration is allocated to the identifiable net  
assets on the basis of fair value at the date of acquisition provisional fair values allocated at a reporting date are finalis ed within 12 months of the 
acquisition date acquisition costs are expensed  
when purchase consideration is contingent on future events the initial cost of the acquisition recorded includes an estimate of the fair value  
of the contingent amounts expected to be payable in the future the cost of the acquisition is adjusted when revised estimates are made  
with corresponding adjustments made to goodwill 
when the cost of acquisition exceeds the fair values of the identifiable net assets the differen ce is treated as purchased goodwill which is reviewed 
for impairment annually or when there is an indication of impairment if the fair value attributable to the group’s share of the identifiable net assets 
exceeds the cost of acquisition the difference is recognised in the income statement 
h foreign currency translation 
the group’s transactions are denominated in a number of different currencies primarily us dollars tanzanian shillings “shill ings” south 
african rands “rands” uk pounds sterling “pounds” and australian dollars the group has liabilities that are primarily de nominated  
in us dollars the us dollar is the company’s and its main subs idiaries’ functional currency as well as the group’s presentation currency 
transactions in currencies other than the us dollar are translated at the exchange rates as at the date of transaction monetar y assets and liabilities 
denominated in currencies other than the us dollar are translated to us dollars at yearend exchange rates all differences that arise are recorded  
in the income statement nonmonetary assets measured at historical cost in a currency other than us dollars are translated usi ng the exchange 
rates at the date of the initial transactions where nonmonetary assets are measured at fair value in a currency other than us dollars they are 
translated into us dollars using the exchange rates on the date when the fair value was determined  
  
 
 
the following exchange rates to the us dollar have been applied 
  
as at 
31 december 
2011  
average  
year ended  
31 december 
2011  
as at 
31 december 
2010  
average 
year ended 
31 december 
2010 
south african rand us  zar 808 723  666 731 
tanzanian shilling us  tzs 1582 1558  1484 1447 
australian dollars us  aud 098 097  098 092 
uk pound us  gbp 064 062  065 065 
i determination of ore reserves 
the group estimates its ore reserves and mineral resources based on information compiled by competent persons as defined in accordance with 
the canadian securities administrators’ national instrument 43101 “standards of di sclosure for mineral projects” requirements reports to 
support these estimates are prepared each year proven and probable 2p reserves and for certain mines other mineral resources determined in 
this way are used in the calculation of depreciation amortisation and impairment charges the assessment of life of mine stripping ratios and for 
forecasting the timing of the payments related to the environmental rehabilitation provision 
in assessing the life of a mine for accounting purposes minera l resources are only taken into account where there is a high degree of confidence  
of economic extraction  
there are numerous uncertainties inherent in estimating ore reserves and assumptions that are valid at the time of estimation may change 
significantly when new information becomes available changes in the forecast prices of commodit ies exchange rates production costs or  
recovery rates may change the economic status of reserves and may ultimately result in the reserves being revised 
j stripping costs 
in open pit mining operations it is necessary to remove over burden and other waste materials to access ore from which minerals can be extracted 
economically the process of mining overburden and waste materials is referred to as stripping stripping costs incurred in order to provide initial 
access to the ore body referred to as preproduction stri pping are capitalised as open pit mine development costs 
stripping costs incurred during the production stage of a pit are accounted for as costs of the inventory produced during the p eriod that the 
stripping costs were incurred unless these costs provide a future economic benefit production phase stripping costs generate a future economic 
benefit when the related stripping activity i provides access to ore to be mined in the future ii increases the fair value of the mine or pit  
as access to future mineral reserves becomes less costly iii increases the productive capacity or extends the productive life of the mine or pit  
for production phase stripping costs that generate a future economic benefit the current period stripping costs are capitalised as open pit mine 
development costs 
capitalised open pit mine development costs are depreciated on a units of production basis whereby the denominator is the estim ated  
ounces of gold in the associated open pit in proven and probable reserves and the portion of resources considered probable of b eing extracted  
economically capitalised open pit mine development costs are de preciated once the open pit has entered production and the futu re economic  
benefit is being derived 
k revenue recognition 
revenue is recognised when persuasive evidence exists that all of the following criteria are met 
• the significant risks and rewards of ownership of the product have been transferred to the buyer 
• neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold  
has been retained 
• the amount of revenue can be measured reliably  
• it is probable that the economic benefits associated with the sa le will flow to the group and 
• the costs incurred or to be incurred in respect of the sale can be measured reliably 
gold doré sales 
gold doré is unrefined gold bullion bars usually consisting of 90 gold that is refined to pure gold bullion prior to sale to our customers revenue 
from gold doré sales is recognised either at the time of sale to a third party or in relation to quarter end settlements at the time of shipment should 
the group have received confirmation of sale to the third party the sales price is based on the gold spot price at the time of sale 
   128
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notes to the consolidated financial statements continued  
 
2 significant accounting policies continued 
concentrate sales 
concentrate is a processing product containing the valuable ore mineral gold copper and silver from which most of the waste mi neral has been 
eliminated that undergoes a smelting process to convert it into gold bullion copper and silver concentrate under the terms of concentrate sales 
contracts with independent smelting companies gold copper and silver in concentrate is sold at trailing monthly average spot prices based on 
contract quotational periods 
revenue is recorded net of selling costs at the shipped on boar d date which is also when risks and rewards pass to the smelting companies using 
market prices on the expected date that final sales prices will be fixed variations between the price recorded at the shipment date and the actual 
final price set under the smelting contracts are caused by changes in market prices and result in an embedded derivative in ac counts receivable  
the embedded derivative is recorded at fair value each period until final settlement occurs with changes in fair value classif ied as provisional price 
adjustments and included as a component of revenue coproduct revenues from the sale of other products such as copper and silver contained  
in the concentrate are recognised in revenue 
coproducts 
revenue from the sale of coproducts such as copper and si lver contained in concentrates are recognised in revenue  
l cost of sales 
cost of sales consists of direct mining costs which include personnel costs general and administrative costs energy costs principally diesel fuel and 
electricity maintenance and repair costs operating supplies external services third party smelting refining and transport fees and depreciation 
related to sales as well as production taxes and royalty expenses for the period cost of sales is based on average costing for contained or recoverable 
ounces sold as well as production taxes and royalty expense for the period all costs are net of any impairment to reduce inventory to its net 
realisable value 
m exploration and evaluation  
exploration expenditures 
exploration expenditures relate to the initial search for mineral deposits with economic potential as well as expenditures incu rred for the purposes 
of obtaining more information about existing mineral deposits exploration expenditures typically comprise costs that are directly attributable to  
• researching and analysing existing exploration data  
• conducting geological studies  
• exploratory drilling and sampling for the purposes of obtaining core samples and the related metallurgical assay of these cores  and 
• drilling to determine the volume and grade of deposits in an area known to contain mineral resources or for the purposes of con verting  
mineral resources into proven and probable reserves 
exploration expenditures incurred at greenfield sites sites where the group does not have any mineral deposits that are alread y being mined 
or developed are expensed as incurred exploration expenditures incurred at brownfield sites sites that are adjacent to a mineral deposit that 
is classified within proven and probable reserves and are already being mined or developed are capitalised if the following cr iteria are met 
• the drilling is being done in an inferred or measured and indicated resource and  
• there is an existing proven and probable reserve that is contiguous or adjacent to where the drilling is being done and  
• it is probable that the resource will be converted to a proven and probable reserve  
the assessment of probability is based on the following factors results from previous drill programmes results from a geological study results  
from a mine scoping study confirming economic viability of the resource and preliminary estimates of the volume and grade of t he deposit  
and the net cash flows expected to be generated from its development costs incurred at brownfie ld sites that meet the above criteria are capitalised 
as a component of property plant and equipment “mine development costs” pursuant to ias 16 “property plant and equipment” all other 
drilling and related exploration costs incurred at these sites are expensed as mine site exploration exploration expenditures incurred for the 
purposes of determining additional information on a mineral deposit that is classified within proven and probable reserves or f or the purposes  
of extending an existing mineral deposit that is classified within proven and probable reserves and is already being mined or d eveloped are also 
capitalised as mine development costs  
evaluation expenditures 
evaluation expenditures arise from a detailed assessment of deposits or other projects that have been identified as having econ omic potential 
in order to determine their technical feasibility and commercial viability they typically include costs directly attributable to 
• detailed engineering studies 
• examination and testing of extraction methods and metallurgicaltreatment processes 
• surveying transportation and infrastructure requirements  
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129
ann ual report and acco unts 2011
notes to the consolidated financial statements continued  
 
2 significant accounting policies continued 
concentrate sales 
concentrate is a processing product containing the valuable ore mineral gold copper and silver from which most of the waste mi neral has been 
eliminated that undergoes a smelting process to convert it into gold bullion copper and silver concentrate under the terms of concentrate sales 
contracts with independent smelting companies gold copper and silver in concentrate is sold at trailing monthly average spot prices based on 
contract quotational periods 
revenue is recorded net of selling costs at the shipped on boar d date which is also when risks and rewards pass to the smelting companies using 
market prices on the expected date that final sales prices will be fixed variations between the price recorded at the shipment date and the actual 
final price set under the smelting contracts are caused by changes in market prices and result in an embedded derivative in ac counts receivable  
the embedded derivative is recorded at fair value each period until final settlement occurs with changes in fair value classif ied as provisional price 
adjustments and included as a component of revenue coproduct revenues from the sale of other products such as copper and silver contained  
in the concentrate are recognised in revenue 
coproducts 
revenue from the sale of coproducts such as copper and si lver contained in concentrates are recognised in revenue  
l cost of sales 
cost of sales consists of direct mining costs which include personnel costs general and administrative costs energy costs principally diesel fuel and 
electricity maintenance and repair costs operating supplies external services third party smelting refining and transport fees and depreciation 
related to sales as well as production taxes and royalty expenses for the period cost of sales is based on average costing for contained or recoverable 
ounces sold as well as production taxes and royalty expense for the period all costs are net of any impairment to reduce inventory to its net 
realisable value 
m exploration and evaluation  
exploration expenditures 
exploration expenditures relate to the initial search for mineral deposits with economic potential as well as expenditures incu rred for the purposes 
of obtaining more information about existing mineral deposits exploration expenditures typically comprise costs that are directly attributable to  
• researching and analysing existing exploration data  
• conducting geological studies  
• exploratory drilling and sampling for the purposes of obtaining core samples and the related metallurgical assay of these cores  and 
• drilling to determine the volume and grade of deposits in an area known to contain mineral resources or for the purposes of con verting  
mineral resources into proven and probable reserves 
exploration expenditures incurred at greenfield sites sites where the group does not have any mineral deposits that are alread y being mined 
or developed are expensed as incurred exploration expenditures incurred at brownfield sites sites that are adjacent to a mineral deposit that 
is classified within proven and probable reserves and are already being mined or developed are capitalised if the following cr iteria are met 
• the drilling is being done in an inferred or measured and indicated resource and  
• there is an existing proven and probable reserve that is contiguous or adjacent to where the drilling is being done and  
• it is probable that the resource will be converted to a proven and probable reserve  
the assessment of probability is based on the following factors results from previous drill programmes results from a geological study results  
from a mine scoping study confirming economic viability of the resource and preliminary estimates of the volume and grade of t he deposit  
and the net cash flows expected to be generated from its development costs incurred at brownfie ld sites that meet the above criteria are capitalised 
as a component of property plant and equipment “mine development costs” pursuant to ias 16 “property plant and equipment” all other 
drilling and related exploration costs incurred at these sites are expensed as mine site exploration exploration expenditures incurred for the 
purposes of determining additional information on a mineral deposit that is classified within proven and probable reserves or f or the purposes  
of extending an existing mineral deposit that is classified within proven and probable reserves and is already being mined or d eveloped are also 
capitalised as mine development costs  
evaluation expenditures 
evaluation expenditures arise from a detailed assessment of deposits or other projects that have been identified as having econ omic potential 
in order to determine their technical feasibility and commercial viability they typically include costs directly attributable to 
• detailed engineering studies 
• examination and testing of extraction methods and metallurgicaltreatment processes 
• surveying transportation and infrastructure requirements  
  
 
 
• permitting activities and 
• detailed economic evaluations to determine whether development of the reserves is commercially justified including the prepara tion of scoping 
prefeasibility and final feasibility studies 
evaluation expenditures incurred at greenfield sites are expensed as incurred evaluation expenditures incurred at brownfield s ites are expensed  
as incurred unless it can be demonstrated that the related evaluation expenditures will generate a future economic benefit  
evaluation expenditures incurred at operating minesdevelopment projects are capitalised as a component of property plant and equipment 
“mining properties and development costs” respectively  
acquired exploration and evaluation properties 
exploration and evaluation stage properties acquired either as an acquisition of individual assets or as part of a business combination are  
capitalised as an intangible asset “acquired exploration and evaluation properties” exploration and evaluation stage properties represent  
interests in properties that do not have mineralised material cl assified within proven and probable reserves the value of such properties is  
primarily driven by the nature and amount of mineralised material contained in such properties including value attributable to the rights to  
explore or develop i a property containing mineralised material classified as a measured indicated or inferred resource or ii a prospective 
greenfield property with significant exploration potential exploration and evaluation expenditures incurred on such properties subsequent to  
their acquisition are expensed as incurred until the technical and commercial viability of developing the property has been dem onstrated under  
the same criteria described above for exploration and evaluation expenditures  
n earnings per share 
basic earnings per share is computed by dividing net profit for the period attributable to the owners of the company by the weighted average 
number of ordinary shares outstanding for the period diluted earnings per share reflect the potential dilution that could occur if additional 
ordinary shares are assumed to be issued under securities that entitle their holders to obtain ordinary shares in the future f or stock options  
the number of additional shares for inclusion in diluted earnings per share calculations is determined using the treasury stock method under  
this method stock options whose exercise price is less than the average market price of our ordinary shares are assumed to be exercised and  
the proceeds are used to repurchase ordinary shares at the average market price for the period the incremental number of ordinary shares  
issued under stock options and repurchased from proceeds is included in the calculation of diluted earnings per share 
o inventory 
material extracted from the group’s mines is classified as either ore or waste ore represents material that at the time of extraction is expected  
to be processed into a saleable form and sold at a profit waste represents material that is required to be removed to access ore bodies ore is 
recorded as an asset that is classified within inventory as material is extracted from the open pit or underground mine ore is accumulated in 
stockpiles that are subsequently processed into gold in a saleable form under a mine plan that takes into consideration optimal scheduling of 
production of our reserves present plant capacity and the market price of gold and copper work in process inventory represen ts gold copper  
and silver in the processing circuit that has not completed the production process and is not yet in a saleable form finished goods inventory 
represents gold in saleable form that has not yet been shipped mine operating supplies represent commodities and other raw materials consumed  
in the production process as well as spare parts and other main tenance supplies that are not classified as capital items inventories are valued  
at the lower of cost and net realisable value with cost being determined on a weighted average cost basis average costs are calculated by reference  
to the cost of inventory at the beginning of the period to gether with the cost of inventory produced in a period  
gold copper and silver ore contained in stockpiles is measured by estimating the number of tonnes added and removed from the s tockpile  
and the associated estimate of gold contained therein based on assay data and applying estimat ed metallurgical recovery rates based on the 
expected processing method stockpile ore tonnages are verified by periodic surveys costs are allocated to ore stockpiles based on quantities  
of material stockpiled using current mining costs incurred up to the point of stockp iling the ore and include direct labour costs materials and 
contractor expenses which are directly attributable to the extrac tion of ore including an allocation of stripping costs attrib utable to current  
period production an allocation of mine site overhead costs and depreciation of mining prop erties and property plant and equipment used  
in the extraction of ore reduced by an allocation of capitalised stripping costs as ore is processed costs are removed based on recoverable 
quantities of gold and the stockpile’s average cost per unit ore that is not expected to be processed in the 12 months following the balance  
sheet date is classified as noncurrent  
costs capitalised in process and finished goods inventory include the cost of stockpiles processed the cost of commodities and raw materials 
consumed in the production process direct labour repair and maintenance costs energy costs depreciation of property plant and equipment  
used in the production process and an allocation of mine site overhead costs costs are removed from finished goods inventory and recorded 
in cost of sales based on the average cost per ounce of gold copper and silver sold in the period 
cost of mine operating supplies is the purchase cost including allocated freight costs where applicable 
   130
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notes to the consolidated financial statements continued  
 
2 significant accounting policies continued 
provisions are recorded to reduce ore stockpiles work in process and finished goods inventory to net realisable value where th e net realisable  
value of the inventory is lower than its cost at each balance sheet date net realisable value is determined with reference to relevant market prices  
less applicable variable selling expenses provisions recorded also reflect an estimate of the remaining costs of completion to bring the inventory  
into its saleable form provisions are recorded to reduce mine operating supplies to net realisable value which is generally c alculated by reference  
to its salvage or scrap value when it is determined that the supplies are slow moving andor obsolete provisions are reversed to reflect subsequent 
recoveries in net realisable value where the inventory is still on hand at the balance sheet date  
p property plant and equipment 
mineral properties and mine development costs 
mineral properties and mine development costs are stated at co st less accumulated depreciation and applicable accumulated impairment losses  
the acquisition cost of a mineral property is the estimated fair value of proven and probable reserves and measured indicated and inferred resources 
acquired as a result of a business combination or asset acquisition capitalised mine development costs include preproduction stripping costs 
production stripping costs that result in a future economic benefit refer to note 2j for capitalisation criteria for strippin g costs costs incurred to 
access reserves at underground mining operations and exploration and evaluation expenditures that result in a probable future economic benefit 
refer to note 2m for capitalisation criteria for exploration and evaluation expenditures  
development costs incurred at underground mines to build new shafts drifts and ramps that provide physical access to the underground ore are 
capitalised as incurred these costs can be incurred throughout the life of the underground mine  
plant and equipment 
plant and equipment is recorded at cost less accumulated depreciation and applicable impairment losses cost includes all expe nditures incurred 
to prepare an asset for its intended use including the purchase price brokers’ commissions and installation costs including architectural design 
and engineering fees legal fees survey costs site preparation costs freight charges transportation insurance costs and du ties 
costs that extend the productive capacity or useful economic li fe of an asset are capitalised costs incurred that do not extend the productive 
capacity or useful economic life of an asset are cons idered repairs and maintenance and expensed as incurred  
the group enters into leasing arrangements and arrangements that are in substance leasing arrangements the determination of whether  
an arrangement is or contains a lease is based on the substanc e of the arrangement at inception date including whether the fulfilment of the 
arrangement is dependent on the use of a specific asset or assets or whether the arrangement conveys a right to use the asset a reassessment  
after inception is only made in specific circumstances leasin g arrangements that transfer substantially all the risks and rewards of ownership  
of the asset to the group are classified as finance leases  
finance leases are recorded as an asset with a corresponding liability at an amount equal to the lower of the fair value of the leased property and 
the present value at the beginning of the lease term of the minimum lease payments over the term of the lease each lease payme nt is allocated 
between the liability and finance costs using the effective interest method whereby a constant rate of interest expense is rec ognised on the  
balance of the liability outstanding the interest element of the lease is charged to the income statement as a finance expense  the property  
plant and equipment assets acquired under finance leases are depreciated over the shorter of the useful life of the asset and t he lease term  
all other leases are classified as operating leases operating lease payments are recognised as an expense in the income statement on a straightline 
basis over the lease term  
assets under construction 
assets in the course of construction at both our development projects and operating mines are capitalised in the “assets under construction” 
account the cost of property plant and equipment comprises its purchase price and any costs directly attributable to bringing it into working 
condition for its intended use at which point it is transferre d to property plant and equipment and depreciation commences development projects 
are recorded at cost less applicable accumulated impairment losses development projects represent interests in properties that contain proven  
and probable reserves and where development activities are ongoing the cost of develo pment projects is composed of the estimated fair value  
of development stage assets acquired as a result of a business combination or an asset acquisition and costs associated with t he construction of 
tangible assets such as processing plants permanent housing facilities and other tangible infrastructure associated with the project assets under 
construction also contains deposits on long lead items assets under construction are not depreciated  
depreciation  
property plant and equipment is depreciated net of residual value over its useful life or over the remaining life of the mine if shorter on a  
straightline basis for mineral properties and mine development costs the economic benefits of the assets are consumed in a pattern which is 
linked to the production level such assets are depreciated on a unit of production basis depreciation commences when assets a re available for their 
intended use in applying the units of production method depreciation is normally calculated using the quantity of gold coppe r and silver extracted 
from the mine or pit in the period as a percentage of the total quantity of material expected to be extracted in current and future periods based on 
estimates of recoverable proven and probable reserves and for some mines mineral resources such nonreserve material may be included in the  overview performance governance f inanc ial 
s tatements
shareholder 
information
131
ann ual report and acco unts 2011
notes to the consolidated financial statements continued  
 
2 significant accounting policies continued 
provisions are recorded to reduce ore stockpiles work in process and finished goods inventory to net realisable value where th e net realisable  
value of the inventory is lower than its cost at each balance sheet date net realisable value is determined with reference to relevant market prices  
less applicable variable selling expenses provisions recorded also reflect an estimate of the remaining costs of completion to bring the inventory  
into its saleable form provisions are recorded to reduce mine operating supplies to net realisable value which is generally c alculated by reference  
to its salvage or scrap value when it is determined that the supplies are slow moving andor obsolete provisions are reversed to reflect subsequent 
recoveries in net realisable value where the inventory is still on hand at the balance sheet date  
p property plant and equipment 
mineral properties and mine development costs 
mineral properties and mine development costs are stated at co st less accumulated depreciation and applicable accumulated impairment losses  
the acquisition cost of a mineral property is the estimated fair value of proven and probable reserves and measured indicated and inferred resources 
acquired as a result of a business combination or asset acquisition capitalised mine development costs include preproduction stripping costs 
production stripping costs that result in a future economic benefit refer to note 2j for capitalisation criteria for strippin g costs costs incurred to 
access reserves at underground mining operations and exploration and evaluation expenditures that result in a probable future economic benefit 
refer to note 2m for capitalisation criteria for exploration and evaluation expenditures  
development costs incurred at underground mines to build new shafts drifts and ramps that provide physical access to the underground ore are 
capitalised as incurred these costs can be incurred throughout the life of the underground mine  
plant and equipment 
plant and equipment is recorded at cost less accumulated depreciation and applicable impairment losses cost includes all expe nditures incurred 
to prepare an asset for its intended use including the purchase price brokers’ commissions and installation costs including architectural design 
and engineering fees legal fees survey costs site preparation costs freight charges transportation insurance costs and du ties 
costs that extend the productive capacity or useful economic li fe of an asset are capitalised costs incurred that do not extend the productive 
capacity or useful economic life of an asset are cons idered repairs and maintenance and expensed as incurred  
the group enters into leasing arrangements and arrangements that are in substance leasing arrangements the determination of whether  
an arrangement is or contains a lease is based on the substanc e of the arrangement at inception date including whether the fulfilment of the 
arrangement is dependent on the use of a specific asset or assets or whether the arrangement conveys a right to use the asset a reassessment  
after inception is only made in specific circumstances leasin g arrangements that transfer substantially all the risks and rewards of ownership  
of the asset to the group are classified as finance leases  
finance leases are recorded as an asset with a corresponding liability at an amount equal to the lower of the fair value of the leased property and 
the present value at the beginning of the lease term of the minimum lease payments over the term of the lease each lease payme nt is allocated 
between the liability and finance costs using the effective interest method whereby a constant rate of interest expense is rec ognised on the  
balance of the liability outstanding the interest element of the lease is charged to the income statement as a finance expense  the property  
plant and equipment assets acquired under finance leases are depreciated over the shorter of the useful life of the asset and t he lease term  
all other leases are classified as operating leases operating lease payments are recognised as an expense in the income statement on a straightline 
basis over the lease term  
assets under construction 
assets in the course of construction at both our development projects and operating mines are capitalised in the “assets under construction” 
account the cost of property plant and equipment comprises its purchase price and any costs directly attributable to bringing it into working 
condition for its intended use at which point it is transferre d to property plant and equipment and depreciation commences development projects 
are recorded at cost less applicable accumulated impairment losses development projects represent interests in properties that contain proven  
and probable reserves and where development activities are ongoing the cost of develo pment projects is composed of the estimated fair value  
of development stage assets acquired as a result of a business combination or an asset acquisition and costs associated with t he construction of 
tangible assets such as processing plants permanent housing facilities and other tangible infrastructure associated with the project assets under 
construction also contains deposits on long lead items assets under construction are not depreciated  
depreciation  
property plant and equipment is depreciated net of residual value over its useful life or over the remaining life of the mine if shorter on a  
straightline basis for mineral properties and mine development costs the economic benefits of the assets are consumed in a pattern which is 
linked to the production level such assets are depreciated on a unit of production basis depreciation commences when assets a re available for their 
intended use in applying the units of production method depreciation is normally calculated using the quantity of gold coppe r and silver extracted 
from the mine or pit in the period as a percentage of the total quantity of material expected to be extracted in current and future periods based on 
estimates of recoverable proven and probable reserves and for some mines mineral resources such nonreserve material may be included in the 
 
 
depreciation calculations where there is a high degree of confide nce in its economic extraction and the production of the nonreserve material  
is reflected in the life of mine plan  
development costs that relate to a discrete section of an ore body and which only provide benefit over the life of those reserves are depreciated  
over the recoverable proven and probable reserves of that discrete section discr ete sections include capitalised underground development costs  
or production stripping costs incurred for the purposes of provi ding access to specific ore blocks or areas of the mine and whi ch only provide an 
economic benefit over the period of mining that ore block or area development costs incurred which benefit the entire ore body are depreciated 
over the recoverable proven and probable reserves of the entire ore body  
the expected depreciation rates of the major categories of assets are as follows 
mineral properties and mine development costs  uop

plant and equipment 4–25
underground mobile equipment  143–20
light vehicles and other mobile equipment 333–50
furniture computer and office equipment  333–50
 uop indicates assets which are depreciated on the basis of units of production “uop” in this case ounces of gold copper and silver produced in a period divided by the total recoverable 
reserves and resources of gold copper and silver expected to be mined based on the current life of mine plans 
each asset’s estimated residual value and useful life are reviewed and adjusted if appropriate on an annual basis the estima te of residual value  
and useful life is based on the physical condition and life limitations of buildings plant and equipment and the present asses sment of economically 
recoverable reserves of the mine for the mining property and development cost asset changes to the estimated residual values or useful lives are 
accounted for prospectively 
q goodwill  
goodwill represents the excess of the cost of acquisition over th e fair value of the identifiable assets liabilities and contingent liabilities acquired at 
the date of acquisition goodwill is initially determined based on provisional fair values fair values are finalised within 12 months of the acquisition 
date for nonwhollyowned subsidiaries noncontrolling interests are initially recorded based on the minorities’ proportion o f the fair values for 
the assets and liabilities recognised at acquisition  
goodwill that is acquired through business combinations is allocated to cash generating units “cgus” or groups of cgus that are expected to 
benefit from the synergies of the business combination each of th e group’s cgus that has an allocation of goodwill is also an operating segment  
as defined by ifrs 8 consequently goodwill is tested for impairment at the individual cgu level 
goodwill is not amortised rather it is tested annually for impairment in accordance with accounting policy note 2s goodwill impairments are  
not reversible  
r intangible assets 
intangible assets acquired by way of an asset acquisition or busi ness combination are recognised if the asset is separable or arises from contractual  
or legal rights and the fair value can be measured reliably on initial recognition on acquisition of a mineral property in the exploration stage we 
prepare an estimate of the fair value attributable to the explor ation potential including mineral resources if any of that p roperty the fair value of 
the exploration potential is recorded as an intangible asset acquired exploration potential as at the date of acquisition when an exploration stage 
property moves into development any acquired exploration intangible asset balance attributable to that property is transferred to nondepreciable 
mining interests within property plant and equipment 
impairment testing and the reversal of impairments are conducted in accordance with accounting policy note 2s 
s impairment of noncurrent assets  
goodwill is reviewed for impairment annually or at any time during the year if an indicator of im pairment is considered to exist  
we review and test the carrying amounts of intangible assets when events or changes in circumstances suggest that the carrying amount may  
not be recoverable 
property plant and equipment is reviewed for impairment if ther e is any indication that the carrying amount may not be recover able  
an impairment loss recognised in prior years for nonfinancial assets other than goodwill shall be reversed if and only if th ere has been a change  
in the estimates used to determine the asset’s recoverable amount since the last impairment loss was recognised this reversal is recognised in  
the consolidated statement of income and is limited to the carrying amount that would have been determined net of any depreciation had no 
impairment been recognised in prior years after such a reversal any depreciation charge is adjusted prospectively 
   132
www africanbarrickgoldcom
notes to the consolidated financial statements continued  
 
2 significant accounting policies continued 
the recoverable amount of an asset is assessed by reference to the higher of value in use “viu” being the net present value  “npv” of future  
cash flows expected to be generated by the asset and fair valu e less costs to sell “fvlcs” impairment assessments are condu cted at the level  
of cgus which is the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets each operating mine 
and development project represents a cgu for impairment testing purposes an impairment loss is recognised for any excess of carrying amount  
of a cgu over its recoverable amount  
the fvlcs of a cgu is based on an estimate of the amount that th e group may obtain in a sale transaction on an arm’s length bas is there is no 
active market for the group’s cgus consequently fvlcs is derived using discounted cash flow techn iques npv of expected future cash flows  
of a cgu which incorporate market participant assumptions cost to sell is based on management’s best estimates of future sel ling costs at the 
time of calculating fvlcs costs attributable to the sale of a cgu are not considered significant 
the expected future cash flows utilised in the npv model are deri ved from estimates of projected future revenues future cash c osts of production 
and capital expenditures contained in the life of mine “lom” plan for each cgu which are generally updated in the fourth quarter of each  
fiscal year the group’s lom plans reflect proven and probable reserves and convertible resources and are based on detailed res earch analysis  
and modelling to optimise the internal rate of return for each cgu as such these plans consider the optimal level of investment overall 
production levels and sequence of extraction taking into account all relevant characteristics of the ore body including waste toore tonnes ore 
grades haul distances chemical and metallurgical properties impacting process recoveries and capacities of available extraction haulage and 
processing equipment  
projected future revenues reflect the forecasted future production levels at each cgu as detailed in the lom plans included in these forecasts  
is the production of mineral resources that do not currently qualify for inclusion in proven and probable ore reserves where th ere is a high degree  
of confidence in their economic extraction this is consistent with the approach that a market participant would utilise in pre paring a forecast  
of expected production levels projected future revenues also reflect the group’s estimate of longterm gold prices which is determined based  
on current prices an analysis of the expected total production costs of producers and forward pricing c urves and forecasts of expected longterm 
prices prepared by research analysts these estimates often differ from current price levels but this methodology is consistent with how a market 
participant would assess longterm gold prices  
the estimates of future cash costs of production and capital expenditures are derived from the lom plans for each cgu costs in curred in 
currencies other than the us dollar are translated to us dollars using expected longterm exchange rates based on the relevant forward pricing  
curve for that currency oil prices are a si gnificant component both directly and indirectly of the expected cash costs of production estimates for 
longterm oil prices used in the lom plans are based on the curre nt spot price the forward pricing curve and longterm oil pri ce forecasts prepared 
by analysts 
the discount rate applied to present value is based upon the real weighted average cost of capital applicable to the cgu the discount rate reflects 
equity risk premiums over the riskfree rate the impact of the remaining economic life of the cgu and the risks associated with the relevant cash 
flows based on the country in which the cgu is located these risk adjustments are based on observed equity risk premiums hist orical country risk 
premiums and average credit default swap spreads for the period 
in determining fvlcs a market multiple is applied to the npv of each cgu gold companies typically trade at a market capitalis ation that is  
based on a multiple of their underlying npv consequently a market participant would generally apply an npv multiple when estimating the  
fair value of a gold property the npv multiples utilised in th e determination of the fvlcs of a cgu consider the npv multiples observed in 
comparable companies these observed multiples are primarily derived from research analyst reports and take into consideration the following  
i estimate of underlying npv prepared by the analyst ii estimate of target market capitalisation prepared by the analyst ii i market capitalisation 
on the date of the analyst report and iv market capitalisation on the date of the impairment test the npv multiple applied also takes into 
consideration the remaining economic life of the cgu for cgus wi th a remaining economic life of five years or less an npv mul tiple on the  
lower end of the observed multiple range is utilised for other cgus the median observed npv multiple is utilised 
the viu of a cgu is generally lower than its fvlcs due primaril y to the application of a market multiple to the underlying npv of a cgu when 
determining its fvlcs consequently the recoverable amount of a cgu for impairment testing purposes is determined based on its fvlcs  
t contributed surplus 
the company did not exist until 12 january 2010 and did not become the parent company for the group until 22 february 2010 whe n the transfer  
of the members of the group pursuant to the preipo reorganisation was completed contributed surplus represents the difference between the 
cumulative investment in the entities and businesses which form part of the consolidated african barrick gold plc group and non controlling interests 
u share capital 
ordinary shares are classified as equity incremental costs directly attributable to the issue of new shares or options are sho wn in equity as 
a deduction from the proceeds  overview performance governance f inanc ial 
s tatements
shareholder 
information
133
ann ual report and acco unts 2011
notes to the consolidated financial statements continued  
 
2 significant accounting policies continued 
the recoverable amount of an asset is assessed by reference to the higher of value in use “viu” being the net present value  “npv” of future  
cash flows expected to be generated by the asset and fair valu e less costs to sell “fvlcs” impairment assessments are condu cted at the level  
of cgus which is the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets each operating mine 
and development project represents a cgu for impairment testing purposes an impairment loss is recognised for any excess of carrying amount  
of a cgu over its recoverable amount  
the fvlcs of a cgu is based on an estimate of the amount that th e group may obtain in a sale transaction on an arm’s length bas is there is no 
active market for the group’s cgus consequently fvlcs is derived using discounted cash flow techn iques npv of expected future cash flows  
of a cgu which incorporate market participant assumptions cost to sell is based on management’s best estimates of future sel ling costs at the 
time of calculating fvlcs costs attributable to the sale of a cgu are not considered significant 
the expected future cash flows utilised in the npv model are deri ved from estimates of projected future revenues future cash c osts of production 
and capital expenditures contained in the life of mine “lom” plan for each cgu which are generally updated in the fourth quarter of each  
fiscal year the group’s lom plans reflect proven and probable reserves and convertible resources and are based on detailed res earch analysis  
and modelling to optimise the internal rate of return for each cgu as such these plans consider the optimal level of investment overall 
production levels and sequence of extraction taking into account all relevant characteristics of the ore body including waste toore tonnes ore 
grades haul distances chemical and metallurgical properties impacting process recoveries and capacities of available extraction haulage and 
processing equipment  
projected future revenues reflect the forecasted future production levels at each cgu as detailed in the lom plans included in these forecasts  
is the production of mineral resources that do not currently qualify for inclusion in proven and probable ore reserves where th ere is a high degree  
of confidence in their economic extraction this is consistent with the approach that a market participant would utilise in pre paring a forecast  
of expected production levels projected future revenues also reflect the group’s estimate of longterm gold prices which is determined based  
on current prices an analysis of the expected total production costs of producers and forward pricing c urves and forecasts of expected longterm 
prices prepared by research analysts these estimates often differ from current price levels but this methodology is consistent with how a market 
participant would assess longterm gold prices  
the estimates of future cash costs of production and capital expenditures are derived from the lom plans for each cgu costs in curred in 
currencies other than the us dollar are translated to us dollars using expected longterm exchange rates based on the relevant forward pricing  
curve for that currency oil prices are a si gnificant component both directly and indirectly of the expected cash costs of production estimates for 
longterm oil prices used in the lom plans are based on the curre nt spot price the forward pricing curve and longterm oil pri ce forecasts prepared 
by analysts 
the discount rate applied to present value is based upon the real weighted average cost of capital applicable to the cgu the discount rate reflects 
equity risk premiums over the riskfree rate the impact of the remaining economic life of the cgu and the risks associated with the relevant cash 
flows based on the country in which the cgu is located these risk adjustments are based on observed equity risk premiums hist orical country risk 
premiums and average credit default swap spreads for the period 
in determining fvlcs a market multiple is applied to the npv of each cgu gold companies typically trade at a market capitalis ation that is  
based on a multiple of their underlying npv consequently a market participant would generally apply an npv multiple when estimating the  
fair value of a gold property the npv multiples utilised in th e determination of the fvlcs of a cgu consider the npv multiples observed in 
comparable companies these observed multiples are primarily derived from research analyst reports and take into consideration the following  
i estimate of underlying npv prepared by the analyst ii estimate of target market capitalisation prepared by the analyst ii i market capitalisation 
on the date of the analyst report and iv market capitalisation on the date of the impairment test the npv multiple applied also takes into 
consideration the remaining economic life of the cgu for cgus wi th a remaining economic life of five years or less an npv mul tiple on the  
lower end of the observed multiple range is utilised for other cgus the median observed npv multiple is utilised 
the viu of a cgu is generally lower than its fvlcs due primaril y to the application of a market multiple to the underlying npv of a cgu when 
determining its fvlcs consequently the recoverable amount of a cgu for impairment testing purposes is determined based on its fvlcs  
t contributed surplus 
the company did not exist until 12 january 2010 and did not become the parent company for the group until 22 february 2010 whe n the transfer  
of the members of the group pursuant to the preipo reorganisation was completed contributed surplus represents the difference between the 
cumulative investment in the entities and businesses which form part of the consolidated african barrick gold plc group and non controlling interests 
u share capital 
ordinary shares are classified as equity incremental costs directly attributable to the issue of new shares or options are sho wn in equity as 
a deduction from the proceeds 
 
 
v provisions 
provisions are recognised when the group has a present obligation legal or constructive  as a result of a past event it is probable that an outflow  
of resources will be required to settle the obligation and a reliable estimate can be made of th e amount of the obligation if the effect of the time  
value of money is material provisions are determined by discounting the expected future cash flows at a pretax rate that reflects current market 
assessments of the time value of money and where appropriate the risks specific to the liability where discounting is used the increase in the 
provision due to the passage of time is recognised as a finance cost 
rehabilitation costs 
the mining extraction and processing activities of the group normally give rise to obligations for environmental rehabilitation rehabilitation 
works can include facility decommissioning and dismantling removal or treatment of waste materials and site and land rehabilitation the extent 
of work required and the associated costs are dependent on the requirements of relevant authorities and the group’s environmental policies 
provisions for the cost of each rehabilitation programme are recognised at the time that environmental disturbance occurs when the extent of disturbance 
increases over the life of an operation the provision is increased accordingly the major parts of the carrying amount of provisions relate to tailings 
pond closurerehabilitation demolition of buildingsmine facilities ongoing water treatment and ongoing care and maintenance of closed mines  
costs included in the provision encompass all closure and rehabili tation activity expected to occur progressively over the life of the operation and at the 
time of closure in connection with disturban ces at the reporting date estimated costs included in the determination of the provision reflect the risks and 
probabilities of alternative estimates of cash flows required to settle the obligation at each particular operation routine op erating costs that may impact 
the ultimate closure and rehabilitation activities such as waste material handling conducted as an integral part of a mining o r production process are 
not included in the provision costs arisin g from unforeseen circumstances such as the contamination caused by unplanned disch arges are recognised 
as an expense and liability when the event occurs that gives rise to an obligation and reliable estimates of the required rehab ilitation costs can be made 
the timing of the actual rehabilitation expenditure is dependent upon a number of factors such as the life and nature of the as set the operating 
licence conditions and the environment in which the mine operates expenditure may occur before and after closure and can continue for an 
extended period of time depending on rehabilitation requirements the majority of the expenditure is expected to be paid over p eriods of up  
to 30 years with some payments into perpetuity rehabilitation provisions are measured at the expected value of future cash flows discounted to 
their present value using a current marketbased estimate of the real riskfree pretax discount rates the unwinding of the d iscount is included  
in finance expense and results in an increase in the amount of the provision provisions are updated each reporting period for the effect of a change 
in the discount rate and the change in estimate is added or dedu cted from the related asset and depreciated prospectively over the asset’s useful life 
significant judgements and estimates are involved in forming expectations of future activities and the amount and timing of the associated cash 
flows those expectations are formed based on existing environmental and regulatory re quirements or if more stringent group environmental 
policies which give rise to a constructive obligation 
when provisions for closure and rehabilitation are initially recognised the corresponding cost is capitalised as an asset representing part of the  
cost of acquiring the future economic benefits of the operation the capitalised cost of closure and rehabilitation activities is recognised in property 
plant and equipment and depreciated accordingly  
it is possible that management’s estimates of provisions could change as a result of changes in regulations the extent of rehabilitation required and 
the means of reclamation or cost estimates rehabilitation provisions are adjusted as a result of changes in estimates those adjustments are accounted 
for as a change in the corresponding value of the related asset except wher e a reduction in the provision is greater than the remaining net book value 
of the related assets in which case the va lue is reduced to nil and the remaining adjustment is recognised in the income state ment in the case of closed 
sites changes to estimated costs are recognised immediately in the income statement changes to the capitalised cost result in an adjustment to future 
depreciation and finance expense on an annual basis the group reviews for changes in cost estimates discount rates or life o f operations  
w employee benefits 
the group operates an equitysettled sharebased compensation plan the “stock option plan” a longterm incentive plan the “ltip” and 
a legacy restricted share unit plan the “legacy rsu plan”  
stockbased compensation 
issue of stock options 
stock options can be granted under either the company ltip or the stock option plan the company receives services from employe es  
as consideration for equity instruments options of the group the fair value of the employee services received in exchange fo r the grant  
of the options is recognised as an expense the total amount to be expensed is determined by reference to the fair value of the options granted 
• including any market performance conditions  
• excluding the impact of any service and nonmarket performance vesting conditions for example profitability sales growth tar gets and 
remaining an employee of the entity over a specified time period and  
• excluding the impact of any nonvesting conditions for example the requirement for employees to save  134
www africanbarrickgoldcom
notes to the consolidated financial statements continued  
 
2 significant accounting policies continued 
nonmarket vesting conditions are included in assumptions about th e number of options that are expected to vest the total expe nse is recognised 
over the vesting period which is the period over which all of the specified vesting conditions are to be satisfied at the end of each reporting period 
the company revises its estimates of the number of options that are expected to vest based on the nonmarket vesting conditions it recognises the 
impact of the revision to original estimates if any in the income statement with a corresponding adjustment to equity 
when the options are exercised the company may issue new shares or procure the transfer of existing shares to satisfy the exer cise where shares 
are issued the proceeds received net of any directly attributabl e transaction costs are credited to share capital nominal val ue and share premium 
when the options are exercised the grant by the company of options over its equity instruments to the employees of subsidiary undertakings  
in the group is treated as a capital contribution the fair value of employee services received measured by reference to the g rant date fair value  
is recognised over the vesting period as an increase to investment in subsidiary undertakings with a corresponding credit to e quity  
ltip 
the company has a cashsettled restricted share unit rsu plan for select employees under the terms of the rsu plan selected employees are 
granted rsus where each rsu has a value equal to one ordinary share of the company rsus vest over a twoandahalf or threeye ar period and  
are settled in cash additional rsus are credited to reflect divid ends paid on ordinary shares of the company during the vesting period with a 
corresponding charge to the compensation expense a liability for rsus is measured at fair value on the grant date and is recog nised on a straightline 
basis over the vesting period with a corresponding charge to the compensation expense at the grant date the fair value of the awards is determined 
from the market value of the shares at the date of award and adjusted for any market based vesting conditions attached to the a ward eg relative total 
shareholder return “tsr” performance changes in the fair value of the rsu liability due to changes in the price of ordinary shares of the company 
are recorded each period with a corresponding charge to the compensation expense compensation expenses recognised for rsus incorporate an 
estimate for expected forfeiture rates the expected forfeiture is estimated based on historical forfeiture rates of the group preipo and expectations of 
future forfeiture rates adjustments to compensation expense are recognised in periods where the actual forfeiture rate differs from the expected rate  
legacy rsu plan 
historically the barrick group has maintained a restricted share unit “rsu” plan for select employees who now work for the group this  
plan operates in an incidental manner to the company rsu plan th ese existing legacy restricted share units will continue to be administered  
and accounted for based on the movement of the fair value of the barrick ordinary share for recording of liabilities and compen sation expense  
defined contribution plan 
the group’s tanzanian employees are members of either the national social security fund “nssf” or of the parastatal pension f und ppf 
which are defined contribution plans a defined contribution plan is a plan under which the group pays fixed contributions into a separate entity 
the group has no legal or constructive obligation to pay further contribution if the fund does not hold sufficient assets to pay all employees the 
benefits relating to the employee service in the current and prior periods the group and employees both contribute 10 of the employees’ gross 
salaries to the schemes the contributions are charged to the income statement when they are due 
termination benefits 
termination benefits are payable when employment is terminated by the group before the normal retirement date or whenever an e mployee 
accepts voluntary redundancy in exchange for these benefits the group recognises termination benefits when it is demonstrably committed  
to either terminating the employment of current employees according to a detailed formal plan without possibility of withdrawal or providing 
termination benefits as a result of an offer made to encourage voluntary redundancy benefits falling due more than 12 months after the balance 
sheet date are discounted to their present value 
bonus plans 
the group recognises a liability and an expense for bonuses where it is contractually obliged or where there is a past practice that has created  
a constructive obligation 
other entitlements 
the estimated monetary liability for employees’ accrued annual leave entitlement at the balance sheet date is recognised as an expense accrual 
x financial instruments 
cash and cash equivalents 
cash and cash equivalents are carried in the balance sheet at fa ir value for the purposes of the balance sheet cash and cash equivalents include  
cash and money market funds for the purposes of the cash flow statement cash and cash equivalents consist of cash and cash e quivalents as 
defined above 
loans and receivables 
loans and receivables are nonderivative financial assets with fixed or determinable payments that are not quoted in an active market do not qualify 
as trading assets and have not been designated as either fair value through profit and loss or available for sale these are initially recognised at fair 
value and are subsequently stated at amortised cost using the effective interest method they ar e included in current assets except for maturities  overview performance governance f inanc ial 
s tatements
shareholder 
information
135
ann ual report and acco unts 2011
notes to the consolidated financial statements continued  
 
2 significant accounting policies continued 
nonmarket vesting conditions are included in assumptions about th e number of options that are expected to vest the total expe nse is recognised 
over the vesting period which is the period over which all of the specified vesting conditions are to be satisfied at the end of each reporting period 
the company revises its estimates of the number of options that are expected to vest based on the nonmarket vesting conditions it recognises the 
impact of the revision to original estimates if any in the income statement with a corresponding adjustment to equity 
when the options are exercised the company may issue new shares or procure the transfer of existing shares to satisfy the exer cise where shares 
are issued the proceeds received net of any directly attributabl e transaction costs are credited to share capital nominal val ue and share premium 
when the options are exercised the grant by the company of options over its equity instruments to the employees of subsidiary undertakings  
in the group is treated as a capital contribution the fair value of employee services received measured by reference to the g rant date fair value  
is recognised over the vesting period as an increase to investment in subsidiary undertakings with a corresponding credit to e quity  
ltip 
the company has a cashsettled restricted share unit rsu plan for select employees under the terms of the rsu plan selected employees are 
granted rsus where each rsu has a value equal to one ordinary share of the company rsus vest over a twoandahalf or threeye ar period and  
are settled in cash additional rsus are credited to reflect divid ends paid on ordinary shares of the company during the vesting period with a 
corresponding charge to the compensation expense a liability for rsus is measured at fair value on the grant date and is recog nised on a straightline 
basis over the vesting period with a corresponding charge to the compensation expense at the grant date the fair value of the awards is determined 
from the market value of the shares at the date of award and adjusted for any market based vesting conditions attached to the a ward eg relative total 
shareholder return “tsr” performance changes in the fair value of the rsu liability due to changes in the price of ordinary shares of the company 
are recorded each period with a corresponding charge to the compensation expense compensation expenses recognised for rsus incorporate an 
estimate for expected forfeiture rates the expected forfeiture is estimated based on historical forfeiture rates of the group preipo and expectations of 
future forfeiture rates adjustments to compensation expense are recognised in periods where the actual forfeiture rate differs from the expected rate  
legacy rsu plan 
historically the barrick group has maintained a restricted share unit “rsu” plan for select employees who now work for the group this  
plan operates in an incidental manner to the company rsu plan th ese existing legacy restricted share units will continue to be administered  
and accounted for based on the movement of the fair value of the barrick ordinary share for recording of liabilities and compen sation expense  
defined contribution plan 
the group’s tanzanian employees are members of either the national social security fund “nssf” or of the parastatal pension f und ppf 
which are defined contribution plans a defined contribution plan is a plan under which the group pays fixed contributions into a separate entity 
the group has no legal or constructive obligation to pay further contribution if the fund does not hold sufficient assets to pay all employees the 
benefits relating to the employee service in the current and prior periods the group and employees both contribute 10 of the employees’ gross 
salaries to the schemes the contributions are charged to the income statement when they are due 
termination benefits 
termination benefits are payable when employment is terminated by the group before the normal retirement date or whenever an e mployee 
accepts voluntary redundancy in exchange for these benefits the group recognises termination benefits when it is demonstrably committed  
to either terminating the employment of current employees according to a detailed formal plan without possibility of withdrawal or providing 
termination benefits as a result of an offer made to encourage voluntary redundancy benefits falling due more than 12 months after the balance 
sheet date are discounted to their present value 
bonus plans 
the group recognises a liability and an expense for bonuses where it is contractually obliged or where there is a past practice that has created  
a constructive obligation 
other entitlements 
the estimated monetary liability for employees’ accrued annual leave entitlement at the balance sheet date is recognised as an expense accrual 
x financial instruments 
cash and cash equivalents 
cash and cash equivalents are carried in the balance sheet at fa ir value for the purposes of the balance sheet cash and cash equivalents include  
cash and money market funds for the purposes of the cash flow statement cash and cash equivalents consist of cash and cash e quivalents as 
defined above 
loans and receivables 
loans and receivables are nonderivative financial assets with fixed or determinable payments that are not quoted in an active market do not qualify 
as trading assets and have not been designated as either fair value through profit and loss or available for sale these are initially recognised at fair 
value and are subsequently stated at amortised cost using the effective interest method they ar e included in current assets except for maturities 
 
 
greater than 12 months after the balance sheet date these are classified as noncurrent assets where the receivables are disc ounted and held at their 
net present value 
loans and receivables comprise trade and other receivables other assets and cash and cash equivalents at the balance sheet date  
a provision for impairment of trade receivables is established wh en there is objective evidence that the group will not be able to collect all amounts 
due according to the original terms of receivables the amount of the provision is the difference between the carrying amount and the expected cash 
flows discounted at the effective interest rate the carrying amount of the asset is reduced through use of an allowance account the amount of the 
provision is recognised in the income statement 
derivatives 
derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently remeasured at their fair value 
the method of recognising the resulting gain or loss depends on whether the derivative is designated as a hedging instrument a nd if so the nature 
of the item being hedged the group designates certain derivatives as either 
a hedges of the fair value of recognised assets or liabilities or a firm commitment fair value hedge 
b hedges of the incomecost of a highly probable forecast transaction or commitment cash flow hedge or 
c hedges of a net investment in a foreign operation net investment hedge 
the group documents at inception of the transaction the relationship between hedging instruments and hedged items as well as its risk 
management objectives and strategy for undertaking various hedging transactions the group also documents its assessment both at hedge 
inception and on an ongoing basis of whether the derivatives that are used in hedging transactions are highly effective in off setting changes  
in fair values or cash flows of hedged items 
the fair values of various derivative instruments used for hedging purposes are disclosed in note 28 movements in the hedging reserve are  
shown in other comprehensive income the full fair value of a hedging derivative is classified as a noncurrent asset or liability when the remaining 
maturity of the hedged item is more than 12 months and as a current asset or liability when the remaining maturity of the hedg ed item is less than 
12 months trading derivatives are classified as a current asset or liability 
a fair value hedge 
changes in the fair value of derivatives that are designated and qualify as fair value hedges are recorded in the income statem ent together with any 
changes in the fair value of the hedged asset or liability that are attributable to the hedged risk the gain or loss relating to the effective portion is 
recognised in the income statement within “finance costs” the gain or loss relating to the ineffective portion is recognised i n the income statement 
within “other gainslosses – net” changes in the fair value of the hedge attributable to interest rate risk are recognised in the income statement 
within “finance costs” 
if the hedge no longer meets the criteria for hedge accounting the adjustment to th e carrying amount of a hedged item for which the effective 
interest method is used is amortised to profit or loss over the period to maturity 
b cash flow hedge 
the effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is recogn ised in other 
comprehensive income the gain or loss relating to the ineffectiv e portion is recognised immediately in the income statement within  
“other gainslosses – net” 
amounts accumulated in equity are reclassified to profit or loss in the periods when the hedged item affects profit or loss for example when the 
forecast sale that is hedged takes place the gain or loss relating to the effective portion is recognised in the income state ment however when  
the forecast transaction that is hedged results in the recognition of a nonfinancial asset for example inventory or fixed as sets the gains and  
losses previously deferred in equity are transferred from equity and included in the initial measurement of the cost of the ass et the deferred 
amounts are ultimately recognised in cost of goods sold in the case of inventory or in depreciation in the case of fixed assets  
when a hedging instrument expires or is sold or when a hedge no longer meets the criteria for hedge accounting any cumulative gain or loss 
existing in equity at that time remains in equity and is recogn ised when the forecast transaction is ultimately recognised in the income statement 
when a forecast transaction is no longer expected to occur the cumulative gain or loss that was reported in equity is immediately transferred  
to the income statement within “other gainslosses – net” 
c net investment hedge 
hedges of net investments in foreign operations are accounted for similarly to cash flow hedges 
any gain or loss on the hedging instrument relating to the effective portion of the hedge is recognised in other comprehensive income  
the gain or loss relating to the ineffective po rtion is recognised in the income statement 
gains and losses accumulated in equity are included in the income statement when the foreign operation is partially disposed of or sold  136
www africanbarrickgoldcom
notes to the consolidated financial statements continued  
 
2 significant accounting policies continued 
embedded derivatives 
contracts are assessed for the existence of embedded derivatives at the date that the group first becomes party to the contract  with reassessment 
only if there is a change to the contract that significantly modifies the cash flows embedded derivatives which are not clearl y and closely related  
to the underlying asset liability or transaction are separated and accounted for as standalone derivatives  
financial liabilities 
borrowings are recognised initially at fair value net of transaction costs incurred borrowings are subsequently carried at am ortised cost any 
difference between the proceeds net of transaction costs and the redemption value is recognised in the income statement over the period of the 
borrowings using the effective interest method fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the 
extent that it is probable that some or all of the facility will be drawn down in this case the fee is deferred until the dra wdown occurs to the extent 
there is no evidence that it is probable that some or all of the facility will be drawn down the fee is capitalised as a prep ayment for liquidity services 
and amortised over the period of the facility to which it relates borrowings are classified as current liabilities unless the group has an unconditional 
right to defer settlement of the liability for at least 12 months after the balance sheet date 
y finance income and finance expense 
interest income is recognised on a timeproportion basis using the effective interest method when a receivable is impaired the group reduces the 
carrying amount to its recoverable amount being the estimated future cash flow discounted at the original effective interest r ate of the instrument 
and continues unwinding the discount as interest income 
interest is recognised as a borrowing cost on a time proportion basis using the effe ctive interest method borrowing costs that relate directly to  
the construction of property plant and equipment during the time that it is required to complete and prepare the asset for its intended use are 
capitalised as part of the cost of the asset  
z taxes 
the tax expense for the period comprises current and deferred tax tax is recognised in the income statement except to the extent that it relates  
to items recognised in other comprehensive income or directly in equity in this case the tax is also recognised in other comprehensive income  
or directly in equity respectively 
current income tax 
current income tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered from or paid to the 
taxation authorities management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is 
subject to interpretation it establishes provisions where appropriate on the basis of amounts expected to be paid to the tax a uthorities the tax rates 
and tax laws used to compute the amount are those that are enacted or substantively enacted by the balance sheet date 
deferred income tax 
deferred income tax is provided using the liability method on temporary differences at the balance sheet date between the tax bases of assets and 
liabilities and their carrying amounts for financial reporting purposes deferred income tax is determined using tax rates enac ted or substantively 
enacted at the balance sheet date and are expected to apply when the related deferred income tax liability is settled deferred income tax assets are 
recognised only to the extent that it is probable that future taxable profits will be available against which the temporary dif ferences can be utilised 
deferred income tax liabilities are recognised for all taxable temporary differences except 
• where the deferred income tax liability arises from the initial re cognition of goodwill or of an asset or liability in a transa ction that is not 
a business combination and at the time of transaction affects neither the accounting profit nor taxable profitloss and 
• in respect of taxable temporary differences associated with investments in subsidiaries where the timing of the reversal of the temporary 
differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future 
deferred income tax assets are recognised for all deductible tempo rary differences carry forward of unused tax credits and unused tax losses  
to the extent that it is probable that taxable profit will be available against which the deduct ible temporary differences and the carry forward  
of unused tax credits and unused tax losses can be utilised except 
• where the deferred income tax asset relating to deductible temp orary differences arises from the initial recognition of an asse t or liability in a 
transaction that is not a business combination and at the time of the transaction affects neither the accounting profit nor taxable profit or loss and  
• in respect of deductible temporary differences associated with investments in subsidiaries deferred income tax assets are recognised only to the 
extent that it is probable that the temporary differences will reverse in the foreseeable future and taxable profit will be available against which the 
temporary differences can be utilised  
the carrying amount of deferred income tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that 
sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be utilised   overview performance governance f inanc ial 
s tatements
shareholder 
information
137
ann ual report and acco unts 2011
notes to the consolidated financial statements continued  
 
2 significant accounting policies continued 
embedded derivatives 
contracts are assessed for the existence of embedded derivatives at the date that the group first becomes party to the contract  with reassessment 
only if there is a change to the contract that significantly modifies the cash flows embedded derivatives which are not clearl y and closely related  
to the underlying asset liability or transaction are separated and accounted for as standalone derivatives  
financial liabilities 
borrowings are recognised initially at fair value net of transaction costs incurred borrowings are subsequently carried at am ortised cost any 
difference between the proceeds net of transaction costs and the redemption value is recognised in the income statement over the period of the 
borrowings using the effective interest method fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the 
extent that it is probable that some or all of the facility will be drawn down in this case the fee is deferred until the dra wdown occurs to the extent 
there is no evidence that it is probable that some or all of the facility will be drawn down the fee is capitalised as a prep ayment for liquidity services 
and amortised over the period of the facility to which it relates borrowings are classified as current liabilities unless the group has an unconditional 
right to defer settlement of the liability for at least 12 months after the balance sheet date 
y finance income and finance expense 
interest income is recognised on a timeproportion basis using the effective interest method when a receivable is impaired the group reduces the 
carrying amount to its recoverable amount being the estimated future cash flow discounted at the original effective interest r ate of the instrument 
and continues unwinding the discount as interest income 
interest is recognised as a borrowing cost on a time proportion basis using the effe ctive interest method borrowing costs that relate directly to  
the construction of property plant and equipment during the time that it is required to complete and prepare the asset for its intended use are 
capitalised as part of the cost of the asset  
z taxes 
the tax expense for the period comprises current and deferred tax tax is recognised in the income statement except to the extent that it relates  
to items recognised in other comprehensive income or directly in equity in this case the tax is also recognised in other comprehensive income  
or directly in equity respectively 
current income tax 
current income tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered from or paid to the 
taxation authorities management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is 
subject to interpretation it establishes provisions where appropriate on the basis of amounts expected to be paid to the tax a uthorities the tax rates 
and tax laws used to compute the amount are those that are enacted or substantively enacted by the balance sheet date 
deferred income tax 
deferred income tax is provided using the liability method on temporary differences at the balance sheet date between the tax bases of assets and 
liabilities and their carrying amounts for financial reporting purposes deferred income tax is determined using tax rates enac ted or substantively 
enacted at the balance sheet date and are expected to apply when the related deferred income tax liability is settled deferred income tax assets are 
recognised only to the extent that it is probable that future taxable profits will be available against which the temporary dif ferences can be utilised 
deferred income tax liabilities are recognised for all taxable temporary differences except 
• where the deferred income tax liability arises from the initial re cognition of goodwill or of an asset or liability in a transa ction that is not 
a business combination and at the time of transaction affects neither the accounting profit nor taxable profitloss and 
• in respect of taxable temporary differences associated with investments in subsidiaries where the timing of the reversal of the temporary 
differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future 
deferred income tax assets are recognised for all deductible tempo rary differences carry forward of unused tax credits and unused tax losses  
to the extent that it is probable that taxable profit will be available against which the deduct ible temporary differences and the carry forward  
of unused tax credits and unused tax losses can be utilised except 
• where the deferred income tax asset relating to deductible temp orary differences arises from the initial recognition of an asse t or liability in a 
transaction that is not a business combination and at the time of the transaction affects neither the accounting profit nor taxable profit or loss and  
• in respect of deductible temporary differences associated with investments in subsidiaries deferred income tax assets are recognised only to the 
extent that it is probable that the temporary differences will reverse in the foreseeable future and taxable profit will be available against which the 
temporary differences can be utilised  
the carrying amount of deferred income tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that 
sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be utilised  
 
 
unrecognised deferred income tax assets are reassessed at each balance sheet date and are recognised to the extent that it has become probable that 
future taxable profit will allow the deferred tax asset to be recovered 
deferred income tax assets and liabilities are measured at the ta x rates that are expected to apply to the year when the asset is realised or the liability 
is settled based on tax rates and tax laws that have been enacted or substantively enacted at the balance sheet date 
uncertainties regarding availability of tax losses in respect of enquiries raised and additional tax assessments issued have been measured using the 
single best estimate of likely outcome approach 
deferred income tax relating to items recognised directly in equi ty is recognised in equity and not in the income statement 
deferred income tax assets and deferred income tax liabilities are offset if a legally enforceable right exists to set off current income tax assets  
against current income tax liabilities and the deferred income taxes relate to the same taxable entity and the same taxation authority 
indirect tax 
indirect tax assets and liabilities for the current and prior pe riods are measured at the amount expected to be recovered from or paid to the  
taxation authorities management periodically evaluates positions taken in indirect tax returns with respect to situations in w hich applicable tax 
regulation is subject to interpretation it establishes provisions or receivables where appropriate on the basis of amounts expected to be paid to  
or received from the tax authorities the tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted by 
the balance sheet date if the receivable is expected to be received in more than 12 months from yearend the receivable is discounted and held at  
its present value amounts expected to be payable or receivable in more than 12 months are classified as noncurrent assets or liabilities in the 
balance sheet as appropriate 
aa royalties 
royalty arrangements based on mineral production are in place at each operating mine the primary type of royalty is a net smel ter return  
“nsr” royalty under this type of royalty the group pays the holder an amount calculated as the royalty percentage multiplied by the value  
of gold production at market gold prices less third party smelting refining and transportation costs  
the north mara mine is also subject to a land royalty land tenements “lt” based on the net revenue derived from the open pi t mines 
royalty expense is recorded when revenue from the sale of gold copper and silver production is recognised 
the following percentages apply 
bulyanhulu  3 nsr
tulawaka  3 nsr
north mara – nyabirama and nyabigena pits  3 nsr 1 lt
north mara – gokona pit  3 nsr 11 lt
buzwagi  3 nsr 30 npi

 the npi is calculated as a percentage of profits realised from the buzwagi mine after all capital exploration and developmen t costs and interest incurred in relation to the buzwagi mine have 
been recouped and all operating costs relating to the buzwagi mine have been paid no amount is currently payable 
bb leases 
leases in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases payments 
made under operating leases net of any incentives received from the lessor are charged to the income statement on a straight line basis over the 
period of the lease 
the group leases certain property plant and equipment leases of property plant and equipment where the group has substantially all the risks 
and rewards of ownership are classified as finance leases fina nce leases are capitalised at the lease’s commencement at the lower of the fair value  
of the leased property and the present value of the minimum lease payments 
each lease payment is allocated between the liability and finance charges the corresponding rental obligations net of finance charges are included 
in other liabilities the interest element of the finance cost is charged to the income statement over the lease period so as t o produce a constant 
periodic rate of interest on the remaining balance of the liability for each period the property plant and equipment acquired under finance leases  
is depreciated over the shorter of the useful life of the asset and the lease term 
cc dividend distribution 
dividend distribution to the company’s shareholders is recognised as a liability in the consolidated financial statements in the period in which the 
dividends are approved by the company’s shareholders 
   138
www africanbarrickgoldcom
notes to the consolidated financial statements continued  
 
3 segment reporting 
the group has only one primary product produced in a single geographic location being gold produced in tanzania in addition t he group 
produces copper and silver as a coproduct reportable operating segments are based on the internal reports provided to the chief operating 
decision maker “codm” to evaluate segment performance decide ho w to allocate resources and make other operating decisions after applying 
the aggregation criteria and quantitative thresholds contained in ifrs 8 the group’s reportable operating segments were determ ined to be  
north mara gold mine tulawaka gold mine bulyanhulu gold mine buzwagi gold mine and a separate corporate and exploration seg ment  
which primarily consists of costs related to corporate administration and exploration and evaluation activities “other”  
segment results and assets include items directly attributable to the segment as well as those that can be allocated on a reasonable basis segment 
assets consist primarily of property plant and equipment inventories other assets and receivables capital expenditures comprise additions to 
property plant and equipment segment liabilities are not reported since they are not considered by the codm as material to se gment 
performance the group has also included segment cash costs  
segment information for the reportable operating segments of the group for the years ended 31 december 2011 and 31 december 201 0 is set  
out below 
  for the year ended 31 december 2011 
in thousands of united states dollars except references to ounces  north mara  tulawaka  bulyanhulu  buzwagi  other  total 
gold revenue  272026 131435 429528 317036  – 1150025
coproduct revenue  917 316 35509 31148  – 67890
total segment revenue  272943 131751 465037 348184  – 1217915
segment cash operating cost
1
  139204 60952 200072 169737  80844 650809
other charges and corporate social  
responsibility expenses  5112 2826 8461 12334  5718 23015
ebitda
2
  128627 67973 256504 166113  75126 544091
depreciation and amortisation  34724 17251 32320 46029  3825 134149
ebit
2
  93903 50722 224184 120084  78951 409942
total segment finance income    1484
total segment finance expense    8725
profit before taxation    402701
tax expense    117924
net profit for the period    284777
    
capital expenditure    
sustaining  30567 3101 42749 56992  11802 145211
expansionary  47381 8346 6626 920  – 63273
capitalised development
5
  26407 9252 32748 15583  – 83990
rehabilitation asset addition  18791 10953 13309 9708  – 52761
total capital expenditure  123146 31652 95432 83203  11802 345235
     
cash costs    
segmental cash operating cost
1
  139204 60952 200072 169737  – 569965
deduct coproduct revenue  917 316 35509 31148  – 67890
total cash costs   138287 60636 164563 138589  – 502075
sold ounces
3
  170625 83450 269981 200518  – 724574
cash cost per ounce sold
2
  810 727 610 691  – 693
equity ounce adjustment
4
    1
attributable cash cost per ounce sold
2
    692
 
   overview performance governance f inanc ial 
s tatements
shareholder 
information
139
ann ual report and acco unts 2011
notes to the consolidated financial statements continued  
 
3 segment reporting 
the group has only one primary product produced in a single geographic location being gold produced in tanzania in addition t he group 
produces copper and silver as a coproduct reportable operating segments are based on the internal reports provided to the chief operating 
decision maker “codm” to evaluate segment performance decide ho w to allocate resources and make other operating decisions after applying 
the aggregation criteria and quantitative thresholds contained in ifrs 8 the group’s reportable operating segments were determ ined to be  
north mara gold mine tulawaka gold mine bulyanhulu gold mine buzwagi gold mine and a separate corporate and exploration seg ment  
which primarily consists of costs related to corporate administration and exploration and evaluation activities “other”  
segment results and assets include items directly attributable to the segment as well as those that can be allocated on a reasonable basis segment 
assets consist primarily of property plant and equipment inventories other assets and receivables capital expenditures comprise additions to 
property plant and equipment segment liabilities are not reported since they are not considered by the codm as material to se gment 
performance the group has also included segment cash costs  
segment information for the reportable operating segments of the group for the years ended 31 december 2011 and 31 december 201 0 is set  
out below 
  for the year ended 31 december 2011 
in thousands of united states dollars except references to ounces  north mara  tulawaka  bulyanhulu  buzwagi  other  total 
gold revenue  272026 131435 429528 317036  – 1150025
coproduct revenue  917 316 35509 31148  – 67890
total segment revenue  272943 131751 465037 348184  – 1217915
segment cash operating cost
1
  139204 60952 200072 169737  80844 650809
other charges and corporate social  
responsibility expenses  5112 2826 8461 12334  5718 23015
ebitda
2
  128627 67973 256504 166113  75126 544091
depreciation and amortisation  34724 17251 32320 46029  3825 134149
ebit
2
  93903 50722 224184 120084  78951 409942
total segment finance income    1484
total segment finance expense    8725
profit before taxation    402701
tax expense    117924
net profit for the period    284777
    
capital expenditure    
sustaining  30567 3101 42749 56992  11802 145211
expansionary  47381 8346 6626 920  – 63273
capitalised development
5
  26407 9252 32748 15583  – 83990
rehabilitation asset addition  18791 10953 13309 9708  – 52761
total capital expenditure  123146 31652 95432 83203  11802 345235
     
cash costs    
segmental cash operating cost
1
  139204 60952 200072 169737  – 569965
deduct coproduct revenue  917 316 35509 31148  – 67890
total cash costs   138287 60636 164563 138589  – 502075
sold ounces
3
  170625 83450 269981 200518  – 724574
cash cost per ounce sold
2
  810 727 610 691  – 693
equity ounce adjustment
4
    1
attributable cash cost per ounce sold
2
    692
 
  
 
 
 
  for the year ended 31 december 2010 
in thousands of united states dollars except references to ounces  north mara  tulawaka  bulyanhulu  buzwagi  other  total 
gold revenue  268762 78499 327847 246194   – 921302 
coproduct revenue  804 148 31977 20790   – 53719 
total segment revenue  269566 78647 359824 266984   – 975021 
segment cash operating cost
1
  103983 45450 173491 156600  50297 529821
other charges and corporate social  
responsibility expenses  12743 5865 5100 14408  353 26033
ebitda
2
  152840 39062 181233 95976   49944 419167 
depreciation and amortisation  28018 10622 28386 39087  3402 109515
ebit
2
  124822 28440 152847 56889   53346 309652 
total segment finance income     1202 
total segment finance expense     1777
profit before taxation     309077 
tax expense     86471
net profit for the period     222606 
    
capital expenditure     
sustaining  26217 5320 45284 18844   7116 102781
expansionary  8066 2758 357 304   – 11485
capitalised development
5
  50977 4428 26103 669  – 82177
rehabilitation asset addition  6182 3007 8795 9964   – 27948 
total capital expenditure  91442 15513 80539 29781   7116 224391 
      
cash costs     
segmental cash operating cost
1
  103983 45450 173491 156600   – 479524
deduct coproduct revenue  804 148 31977 20790  – 53719
total cash costs   103179 45302 141514 135810   – 425805
sold ounces
3
  218684 63909 262442 198221   – 743256 
cash cost per ounce sold
2
  472 709 539 685   – 573 
equity ounce adjustment
4
    4
attributable cash cost per ounce sold
2
     569
1 the chief operating decision maker reviews cash operating costs for the four operatin g mine sites separately from corporate administration costs and exploration costs consequently the 
group has reported these costs in this manner 
2 these are nonifrs financial performance measures with no standard meaning under ifrs refer to “non ifrs measures” on page 50 for definitions 
3 reflects 100 of ounces sold 
4 reflects the adjustment for noncontrolling interests at tulawaka 
5 the prior year segment capital expenditure has been restated to separately reflect capitalised development 
in thousands of united states dollars  
as at 
31 december 
2011 
as at 
31 december 
2010 
segment assets  
north mara  727552 603739
tulawaka  131193 104003
bulyanhulu  1128992 1109740
buzwagi  830790 724467
other  475935 385159
total segment assets  3294462 2927108 140
www africanbarrickgoldcom
notes to the consolidated financial statements continued  
 
4 revenue 
in thousands of united states dollars  
for the year ended 
31 december 
2011 
for the year ended 
31 december 
2010 
gold doré sales   699843 576839 
gold concentrate sales
1
  450182 344463
copper concentrate sales
1
  57529 47279
silver sales  10361 6440 
total  1217915 975021 
1 gold and copper concentrate sales includes provisional price adjustments to the accounts receivable balance due to changes in market gold and copper prices prior to final settlement as 
follows us55 million for the year ended 31 december 2011 2010 us32 million  
 in thousands of united states dollars  
for the year ended 
31 december 
2011 
for the year ended 
31 december 
2010 
revenue by location of customer
2
  
europe  
switzerland  702563 576839
germany  88054 32491 
asia  
china  290469 298676
japan  136829 67015 
total revenue  1217915 975021 
2 revenue by location of customer is determined based on the country to which the gold is delivered 
included in revenues for the year ended 31 december 2011 are revenues of approximately us1130 million 2010 us656 million which  
arose from sales to four of the group’s largest customers no ot her customers individually account for more than 10 of the gro up’s revenues 
during the first quarter of 2010 all gold doré sales were made to bibc a related party 2010 us185 million refer to note 3 2 
5 cost of sales 
in thousands of united states dollars  
for the year ended 
31 december 
2011 
for the year ended 
31 december 
2010 
direct mining costs
1
  510465 427667
third party smelting costs  21400 20308
depreciation
2
  134149 109515 
royalty expense  38100 31549
total
3
  704114 589039 
1 direct mining costs have been restated in the prior year to separately reflect the costs related to third party smelting 
2 depreciation includes the depreciation component relating to the cost of inventory sold  
3 cost of sales less depreciation equals cash operating costs  
  overview performance governance f inanc ial 
s tatements
shareholder 
information
141
ann ual report and acco unts 2011
notes to the consolidated financial statements continued  
 
4 revenue 
in thousands of united states dollars  
for the year ended 
31 december 
2011 
for the year ended 
31 december 
2010 
gold doré sales   699843 576839 
gold concentrate sales
1
  450182 344463
copper concentrate sales
1
  57529 47279
silver sales  10361 6440 
total  1217915 975021 
1 gold and copper concentrate sales includes provisional price adjustments to the accounts receivable balance due to changes in market gold and copper prices prior to final settlement as 
follows us55 million for the year ended 31 december 2011 2010 us32 million  
 in thousands of united states dollars  
for the year ended 
31 december 
2011 
for the year ended 
31 december 
2010 
revenue by location of customer
2
  
europe  
switzerland  702563 576839
germany  88054 32491 
asia  
china  290469 298676
japan  136829 67015 
total revenue  1217915 975021 
2 revenue by location of customer is determined based on the country to which the gold is delivered 
included in revenues for the year ended 31 december 2011 are revenues of approximately us1130 million 2010 us656 million which  
arose from sales to four of the group’s largest customers no ot her customers individually account for more than 10 of the gro up’s revenues 
during the first quarter of 2010 all gold doré sales were made to bibc a related party 2010 us185 million refer to note 3 2 
5 cost of sales 
in thousands of united states dollars  
for the year ended 
31 december 
2011 
for the year ended 
31 december 
2010 
direct mining costs
1
  510465 427667
third party smelting costs  21400 20308
depreciation
2
  134149 109515 
royalty expense  38100 31549
total
3
  704114 589039 
1 direct mining costs have been restated in the prior year to separately reflect the costs related to third party smelting 
2 depreciation includes the depreciation component relating to the cost of inventory sold  
3 cost of sales less depreciation equals cash operating costs  
 
 
 
6 employee benefits 
in thousands of united states dollars  
for the year ended 
31 december 
2011 
for the year ended 
31 december 
2010 
wages and salaries  154710 113221 
other employee benefits
1
  67496 51193
stockbased compensation charge
2
  1735 3756
total  223941 168170
1 other employee benefits include bonuses leave pay medical expenses severance costs and other benefits 
2 further details of the group’s stock options and other stockbased compensation plans are provided in note 23 
average number of employees 
  
for the year ended 
31 december 
2011 
for the year ended 
31 december 
2010 
operations  4879 4351
administration  303 226
total average headcount  5182 4577
7 exploration and evaluation 
the following represents a summary of exploration and evaluation expenditures incurred at each mine site and significant exploration targets  
if applicable 
in thousands of united states dollars  
for the year ended 
31 december 
2011 
for the year ended 
31 december 
2010 
expensed during the year  
north mara  4543 –
buzwagi  934 –
tulawaka  531 2343 
bulyanhulu  1250 419 
other
1
  23081 12099 
total expensed  30339 14861 
capitalised during the year  
north mara  14329 8065 
buzwagi  314 973 
tulawaka  2880 2758 
bulyanhulu  231 357 
total capitalised  17754 12153
total  48093 27014
1 included in “other” are the exploration activities conducted through barrick exploration africa ltd all primary greenfield e xploration and evaluation activities are conducted in 
this company  
  142
www africanbarrickgoldcom
notes to the consolidated financial statements continued  
 
8 other charges 
in thousands of united states dollars  
for the year ended 
31 december 
2011 
for the year ended 
31 december 
2010 
other expenses  
loss on disposal of property plant and equipment   179 90
discounting of indirect tax receivables   – 6808
severance payments   1646 –
foreign exchange losses net  6001 7863
unrealised nonhedge derivative losses   – 3658
construction and consumable inventory writedown   4684 –
bad debt expense  1098 –
asset writedowns  1252 –
transaction cost associated with listing   – 2575
insurance  – 1840
buzwagi fuel claim provision   – 2539
disallowed indirect taxes  7123 –
other   1696 3577
total
1
  23679 28950
 
other income  
insurance proceeds  – 4535
unrealised nonhedge derivative gains  7901 –
other   139 1849
total   8040 6384
 
total other charges  15639 22566
1 corporate social responsibility expenses previously included in other charges have been disclosed separately on the face of the consolidated income statement 
9 auditors’ remuneration 
during the year the group including its subsidiaries obtained the following services from the company’s auditors 
in thousands of united states dollars  
for the year ended 
31 december 
2011 
for the year ended 
31 december 
2010 
audit fees  
fees payable for the audit of the parent co mpany and consolidated financial statements 464 384
fees payable to the company’s auditor and its associates for other services 
audit of the company’s subsidiaries pursuant to legislation 518 547
other services pursuant to legislation  309 295
tax services  157 202
other services in connection with the capital raising
1
  – 1314
other services in connection with the tanzanian dual listing 30 –
other services  61 –
total  1539 2742
1 the majority of capital raising costs paid were capitalised against share premium 
   overview performance governance f inanc ial 
s tatements
shareholder 
information
143
ann ual report and acco unts 2011
notes to the consolidated financial statements continued  
 
8 other charges 
in thousands of united states dollars  
for the year ended 
31 december 
2011 
for the year ended 
31 december 
2010 
other expenses  
loss on disposal of property plant and equipment   179 90
discounting of indirect tax receivables   – 6808
severance payments   1646 –
foreign exchange losses net  6001 7863
unrealised nonhedge derivative losses   – 3658
construction and consumable inventory writedown   4684 –
bad debt expense  1098 –
asset writedowns  1252 –
transaction cost associated with listing   – 2575
insurance  – 1840
buzwagi fuel claim provision   – 2539
disallowed indirect taxes  7123 –
other   1696 3577
total
1
  23679 28950
 
other income  
insurance proceeds  – 4535
unrealised nonhedge derivative gains  7901 –
other   139 1849
total   8040 6384
 
total other charges  15639 22566
1 corporate social responsibility expenses previously included in other charges have been disclosed separately on the face of the consolidated income statement 
9 auditors’ remuneration 
during the year the group including its subsidiaries obtained the following services from the company’s auditors 
in thousands of united states dollars  
for the year ended 
31 december 
2011 
for the year ended 
31 december 
2010 
audit fees  
fees payable for the audit of the parent co mpany and consolidated financial statements 464 384
fees payable to the company’s auditor and its associates for other services 
audit of the company’s subsidiaries pursuant to legislation 518 547
other services pursuant to legislation  309 295
tax services  157 202
other services in connection with the capital raising
1
  – 1314
other services in connection with the tanzanian dual listing 30 –
other services  61 –
total  1539 2742
1 the majority of capital raising costs paid were capitalised against share premium 
  
 
 
10  finance income and finance expense 
a finance income 
in thousands of united states dollars  
for the year ended 
31 december 
2011 
for the year ended 
31 december 
2010 
interest on time deposits  1030 720 
other  454 482 
total  1484 1202 
b finance expense 
in thousands of united states dollars  
for the year ended 
31 december 
2011 
for the year ended 
31 december 
2010 
unwinding of discount
1
  3344 1365 
interest on bank overdraft  199 202 
revolving credit facility charges
2
  4570 209
other  612 1 
total
3
  8725 1777 
1 the unwinding of discount is calculated on the enviro nmental rehabilitation provision presented in note 25 
2 included in credit facility charges are the amortisation of the fees related to the revolving credit facility as well as the monthly interest and facility fees refer to note 27 
3 for cash flow purposes unwinding of discount is excluded from the finance expense movement  
11 tax expense 
in thousands of united states dollars  
for the year ended 
31 december 
2011 
for the year ended 
31 december 
2010 
current tax  
current tax on profits for the year  10162 291
adjustments in respect of prior years
1
  28663 –
total current tax  38825 291
deferred tax  
origination and reversal of temporary differences  79099 86180
total deferred tax  79099 86180
income tax expense  117924 86471
1 during the year a binding memorandum of settlement with the tanzanian revenue authority tra was executed to address the treatment of certain outstanding indirect tax refunds  
in respect of fuel levies and value added taxation the terms of the memorandum of settlement allow the group to offset income tax payable against outstanding refunds for vat and  
fuel levies as a result of these changes pml which is the ta xpaying entity holding tulawaka and buzwagi has agreed to treat both mines as separate tax entities and in the absence of the 
capital expenditure deduction in buzwagi the tulawaka mine has prior year taxable profits which can be immediately paid by off setting against the indirect tax receivable balance owing 
 to the group this resulted in a corporate tax charge for prior years of us287 million which was of fset by a corresponding deferred tax inc ome adjustment of us287 million 
the tax on the group’s profit before tax differs from the theoretical amount that would arise using the weighted average tax rate applicable to the 
profits of the consolidated entities as follows 
in thousands of united states dollars  
for the year ended 
31 december 
2011 
for the year ended 
31 december 
2010 
profit before taxation  402701 309077
tax calculated at domestic tax rates applicable to profits in the respective countries 114199 88186
tax effects of  
nontaxable income  1219 2908
tax losses for which no deferred income tax asset was recognised 7302 4347
prior year adjustments  2391 2201
effect of tax rates in foreign jurisdictions  33 63
other  – 890
tax charge  117924 86471
the tax rate in tanzania is 30 and in so uth africa 28 for both years presented  
   144
www africanbarrickgoldcom
notes to the consolidated financial statements continued  
 
11 tax expense continued 
tax periods remain open to review by the tanzanian revenue authority “tra” in respect of income taxes for five years followin g the date  
of the filing of the corporate tax return during which time the authorities have the right to raise additional tax assessments including penalties  
and interest under certain circumstances the reviews may cover longer periods because a number of tax periods remain open to review by tax 
authorities there is a risk that transactions that have not been challenged in the past by the authorities may be challenged b y them in the future  
and this may result in the raising of additional tax assessments plus penalties and interest  
12 earnings per share 
basic earnings per share “eps” is calculated by dividing the net profit for the period attributable to owners of the company by the weighted 
average number of ordinary shares in issue during the period 
diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares outstanding to assume conversion of all 
dilutive potential ordinary shares the company has dilutive potential ordinary shares in the form of stock options the weight ed average  
number of shares is adjusted for the number of shares granted assuming the exercise of stock options 
at 31 december 2011 and 31 december 2010 earnings per share have been calculated as follows  
in thousands of united states dollars  
for the year ended 
31 december 
2011 
for the year ended 
31 december 
2010 
earnings  
net profit from continuing operations attributable to owners of the parent 274895 218103
 
weighted average number of ordinary shares in issue  410085499 410085499 
adjusted for dilutive effect of  
– stock options  10606 18482
weighted average number of ordinary shares for diluted earnings per share 410096105 410103981
 
earnings per share  
basic earnings per share from continuing operations cents  670 532
dilutive earnings per share from continuing operations cents 670 532
13 dividends 
the final dividend declared in respect of the year ended 31 december 2010 of us152 million us37 cents per share and the 20 11 interim 
dividend of us131 million us32 cents per share 2010 us66 million us16 cents per share were paid during 2011 and re cognised in  
the financial statements refer to note 35 for details of the final dividend declared subsequent to yearend 
14 cash flow – other items 
a operating cash flows – other items 
adjustments for working capital items 
in thousands of united states dollars  
for the year ended 
31 december 
2011 
for the year ended 
31 december 
2010 
trade receivables  29356 2384 
inventories
1
  97873 18446
other current assets
2
  7238 48802
other liabilities
3
  3924 6527 
trade and other payables
4
  41833 28513
working capital adjustments relating to tusker acquisition  – 3734
other working capital items
5
  5034 6336 
total  42880 84248
1 the inventory adjustment includes the movement in curr ent as well as the noncurrent portion of inventory  
2 in september 2011 a memorandum of settlement was agreed with the tanzanian government regarding the indirect tax receivable the settlement agreement allows for the offset of income 
taxes payable from the indirect taxes receivable the reduction of us357 million in the indirect taxes receivable includes an offset of income taxes payable by tulawaka us339 million 
3 the other liabilities adjustment includes the movement in both other current and other noncurrent liabilities  
4 the trade and other payables adjustment excludes statutory liabilities in the form of income tax payable  
5 other working capital items include exchange losses associated with working capital as well as onceoff working capital adjustments relating to minority interest and funding  
intercompany settlements   overview performance governance f inanc ial 
s tatements
shareholder 
information
145
ann ual report and acco unts 2011
notes to the consolidated financial statements continued  
 
11 tax expense continued 
tax periods remain open to review by the tanzanian revenue authority “tra” in respect of income taxes for five years followin g the date  
of the filing of the corporate tax return during which time the authorities have the right to raise additional tax assessments including penalties  
and interest under certain circumstances the reviews may cover longer periods because a number of tax periods remain open to review by tax 
authorities there is a risk that transactions that have not been challenged in the past by the authorities may be challenged b y them in the future  
and this may result in the raising of additional tax assessments plus penalties and interest  
12 earnings per share 
basic earnings per share “eps” is calculated by dividing the net profit for the period attributable to owners of the company by the weighted 
average number of ordinary shares in issue during the period 
diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares outstanding to assume conversion of all 
dilutive potential ordinary shares the company has dilutive potential ordinary shares in the form of stock options the weight ed average  
number of shares is adjusted for the number of shares granted assuming the exercise of stock options 
at 31 december 2011 and 31 december 2010 earnings per share have been calculated as follows  
in thousands of united states dollars  
for the year ended 
31 december 
2011 
for the year ended 
31 december 
2010 
earnings  
net profit from continuing operations attributable to owners of the parent 274895 218103
 
weighted average number of ordinary shares in issue  410085499 410085499 
adjusted for dilutive effect of  
– stock options  10606 18482
weighted average number of ordinary shares for diluted earnings per share 410096105 410103981
 
earnings per share  
basic earnings per share from continuing operations cents  670 532
dilutive earnings per share from continuing operations cents 670 532
13 dividends 
the final dividend declared in respect of the year ended 31 december 2010 of us152 million us37 cents per share and the 20 11 interim 
dividend of us131 million us32 cents per share 2010 us66 million us16 cents per share were paid during 2011 and re cognised in  
the financial statements refer to note 35 for details of the final dividend declared subsequent to yearend 
14 cash flow – other items 
a operating cash flows – other items 
adjustments for working capital items 
in thousands of united states dollars  
for the year ended 
31 december 
2011 
for the year ended 
31 december 
2010 
trade receivables  29356 2384 
inventories
1
  97873 18446
other current assets
2
  7238 48802
other liabilities
3
  3924 6527 
trade and other payables
4
  41833 28513
working capital adjustments relating to tusker acquisition  – 3734
other working capital items
5
  5034 6336 
total  42880 84248
1 the inventory adjustment includes the movement in curr ent as well as the noncurrent portion of inventory  
2 in september 2011 a memorandum of settlement was agreed with the tanzanian government regarding the indirect tax receivable the settlement agreement allows for the offset of income 
taxes payable from the indirect taxes receivable the reduction of us357 million in the indirect taxes receivable includes an offset of income taxes payable by tulawaka us339 million 
3 the other liabilities adjustment includes the movement in both other current and other noncurrent liabilities  
4 the trade and other payables adjustment excludes statutory liabilities in the form of income tax payable  
5 other working capital items include exchange losses associated with working capital as well as onceoff working capital adjustments relating to minority interest and funding  
intercompany settlements  
 
 
other noncash items 
in thousands of united states dollars  
for the year ended 
31 december 
2011 
for the year ended 
31 december 
2010 
adjustments for noncash income statement items  
foreign exchange losses  5034 7585 
provision added  – 67
unrealised gainloss on nonhedge derivatives  7901 3658 
stock option expense  1401 640 
other noncash items  205 443
exchange loss on revaluation of cash balances  967 278 
total  704 11785
b investing cash flows – other items 
in thousands of united states dollars  
for the year ended 
31 december 
2011 
for the year ended 
31 december 
2010 
proceeds on sale of property plant and equipment  1602 183
other longterm receivables  2103 4033
village housing receivable  145 135
tusker options movement  – 9696
settlement of provisions  3530 –
total
6
  320 13411
6 the movement in the rehabilitation liability previously included in the investing cash flows has been restated the movement and the corresponding increase in property plant and 
equipment have been excluded from the cash flow statement due to the fact that it is a noncash movement 
15 inventories 
in thousands of united states dollars  
as at 
31 december 
2011 
as at 
31 december 
2010 
raw materials  
ore in stockpiles  56052 34412 
mine operating supplies  215733 140411 
work in process  30397 36568 
finished products  
gold dorébullion  9912 5936 
gold copper and silver concentrate  4853 10647 
total current portion of inventory  316947 227974 
noncurrent ore in stockpiles
1
  78022 69122 
total  394969 297096 
1 during 2011 us78 million 2010 us691 million of ore at buzw agi and north mara was classifi ed as longterm following management’s assessment that these stockpiles will be processed 
after 2012 
the cost of inventories recognised as an expense and included in cost of sales amounted to us1527 million 2010 us1320 million 
   146
www africanbarrickgoldcom
notes to the consolidated financial statements continued  
 
16 trade and other current assets 
in thousands of united states dollars  
as at 
31 december 
2011 
as at 
31 december 
2010 
trade and other receivables  
amounts due from doré and concentrate sales
1
  21053 46491 
other receivables
2
  9157 11621 
due from related parties note 32  354 2131 
less provision for doubtful debt on other receivables  706 1029
total  29858 59214 
1 an agreement was concluded with a financial institution which gives the group the option to factor certain concentrate receiv ables in order to reduce the group’s exposure to price risk 
credit risk and to reduce the group’s investment in trade receivables under this agreement concentrate receivables are advanc ed by the institution in exchange for a discount fee of  
200 basis points per annum for the discount period the institution has no recourse against the group for changes in pricing from the time it was advanced at 31 december 2011 
receivables to the value of us366 million 2010 nil were advanced under this agreement 
2 other receivables relates to employee and supplier backchargerelated receivables 
trade receivables other than concentrate receivables are noninterest bearing and are generally on 3090 day terms concentrate receivables are 
generally on 60120 day terms depending on the terms per contract  trade receivables are amounts due from customers in the ordi nary course  
of business if collection is expected in one year or less they are classified as current assets  if not they are presented as noncurrent assets  
the carrying value of trade receivables recorded in the financial statements represents the maximum exposure to credit risk the group does  
not hold any collateral as security 
trade receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method less any 
provisions for impairment a provision for impairment of trade receivables is established when there is objective evidence that the group will  
not be able to collect all amounts due accordin g to the original terms of the receivables 
 in thousands of united states dollars  
as at 
31 december 
2011 
as at 
31 december 
2010 
other current assets  
current portion of indirect tax receivables
3
  22370 58048 
other debtors and advance payments
4
  10593 12055 
insurance receivable  308 325 
total  33271 70428 
3 the total indirect tax receivable is us853 million of which us630 million is included in noncurrent assets this receivable is due from the tanzanian revenue authority and it is 
anticipated to be offset against future corporation income tax payments to reflect the time value of money the longterm porti on of this receivable has been discounted at a rate of 5  
2010 57 in september 2011 a memorandum of settlement was agreed with the tanzanian government regarding the indirect tax receivable the settlement agreement allows the  
offset of taxes payable and payable in future from the indirect taxes receivable the reduction of us359 million in the indir ect taxes receivable includes an offset of taxes payable by 
tulawaka of us339 million 
4 other debtors and advance payments relate primarily to prepayments for insurance and income taxes offset against outstanding refunds for vat and fuel levies 
17 cash and cash equivalents 
in thousands of united states dollars  
as at 
31 december 
2011 
as at 
31 december 
2010 
cash at bank and on hand  252988 389158
money market funds  331166 11854 
total  584154 401012 
 
   overview performance governance f inanc ial 
s tatements
shareholder 
information
147
ann ual report and acco unts 2011
notes to the consolidated financial statements continued  
 
16 trade and other current assets 
in thousands of united states dollars  
as at 
31 december 
2011 
as at 
31 december 
2010 
trade and other receivables  
amounts due from doré and concentrate sales
1
  21053 46491 
other receivables
2
  9157 11621 
due from related parties note 32  354 2131 
less provision for doubtful debt on other receivables  706 1029
total  29858 59214 
1 an agreement was concluded with a financial institution which gives the group the option to factor certain concentrate receiv ables in order to reduce the group’s exposure to price risk 
credit risk and to reduce the group’s investment in trade receivables under this agreement concentrate receivables are advanc ed by the institution in exchange for a discount fee of  
200 basis points per annum for the discount period the institution has no recourse against the group for changes in pricing from the time it was advanced at 31 december 2011 
receivables to the value of us366 million 2010 nil were advanced under this agreement 
2 other receivables relates to employee and supplier backchargerelated receivables 
trade receivables other than concentrate receivables are noninterest bearing and are generally on 3090 day terms concentrate receivables are 
generally on 60120 day terms depending on the terms per contract  trade receivables are amounts due from customers in the ordi nary course  
of business if collection is expected in one year or less they are classified as current assets  if not they are presented as noncurrent assets  
the carrying value of trade receivables recorded in the financial statements represents the maximum exposure to credit risk the group does  
not hold any collateral as security 
trade receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method less any 
provisions for impairment a provision for impairment of trade receivables is established when there is objective evidence that the group will  
not be able to collect all amounts due accordin g to the original terms of the receivables 
 in thousands of united states dollars  
as at 
31 december 
2011 
as at 
31 december 
2010 
other current assets  
current portion of indirect tax receivables
3
  22370 58048 
other debtors and advance payments
4
  10593 12055 
insurance receivable  308 325 
total  33271 70428 
3 the total indirect tax receivable is us853 million of which us630 million is included in noncurrent assets this receivable is due from the tanzanian revenue authority and it is 
anticipated to be offset against future corporation income tax payments to reflect the time value of money the longterm porti on of this receivable has been discounted at a rate of 5  
2010 57 in september 2011 a memorandum of settlement was agreed with the tanzanian government regarding the indirect tax receivable the settlement agreement allows the  
offset of taxes payable and payable in future from the indirect taxes receivable the reduction of us359 million in the indir ect taxes receivable includes an offset of taxes payable by 
tulawaka of us339 million 
4 other debtors and advance payments relate primarily to prepayments for insurance and income taxes offset against outstanding refunds for vat and fuel levies 
17 cash and cash equivalents 
in thousands of united states dollars  
as at 
31 december 
2011 
as at 
31 december 
2010 
cash at bank and on hand  252988 389158
money market funds  331166 11854 
total  584154 401012 
 
  
 
 
18 property plant and equipment 
for the year ended 31 december 2011 
in thousands of united states dollars  
 plant and 
equipment  
 mineral properties 
and mine 
development costs   
 assets under 
construction
1
  total 
at 1 january 2011 net of accumulated depreciation 796999 693834  124285 1615118
additions – –  345235 345235
disposalswritedowns 1423 –  – 1423
depreciation 95336 40347  – 135683
transfers between categories 194629 112032  306661 –
at 31 december 2011 894869 765519  162859 1823247
 
at 1 january 2011   
cost 1125072 1005279  124285 2254636
accumulated depreciation 328073 311445  – 639518
net carrying amount 796999 693834  124285 1615118
 
at 31 december 2011   
cost 1316602 1117311  162859 2596772
accumulated depreciation 421733 351792  – 773525
net carrying amount 894869 765519  162859 1823247
 
 
for the year ended 31 december 2010 
in thousands of united states dollars  
 plant and 
equipment  
 mineral properties 
and mine 
development costs   
 assets under 
construction
1
  total 
at 1 january 2010 net of accumulated depreciation 784122 625030   88920 1498072 
additions – –  224391 224391 
disposalswritedowns 273 –  – 273
depreciation 45839 61233  – 107072
transfers between categories 58989 130037   189026 –
at 31 december 2010 796999 693834   124285 1615118 
 
at 1 january 2010    
cost 1067766 875242   88920 2031928 
accumulated depreciation 283644 250212  – 533856
net carrying amount 784122 625030   88920 1498072 
 
at 31 december 2010 net of accumulated depreciation   
cost 1125072 1005279   124285 2254636 
accumulated depreciation 328073 311445  – 639518
net carrying amount 796999 693834   124285 1615118 
1 assets under construction represents a sustaining capital expenditures incurred constructing tangible fixed assets related to operating mines and advance deposits made towards the 
purchase of tangible fixed assets and b expansionary expenditure allocated to a project on a business combination or asset a cquisition and the subsequent costs incurred to develop  
the mine once these assets are ready for their intended use the balance is transferred to plant and equipment andor mineral properties and mine development costs 
leases 
property plant and equipment includes assets relating to the de sign and construction costs of power transmission lines and rel ated infrastructure 
at completion ownership was transferred to tanesco in exchange for amortised repayment in the form of reduced electricity supply charges  
no future lease payment obligations are payable under these finance leases  
property plant and equipment also includes emergency backup generators leased at buzwagi mine under a three year lease agreem ent  
with an option to purchase the equipment at the end of the lease term the lease has been classified as a finance lease 
property plant and equipment further includes spinning power generators leased at bu zwagi mine under a one year lease agreement  
with an option to extend the lease for 36 months and an option to purchase the equipment at the end of the lease term the leas e has  
been classified as a finance lease 
   148
www africanbarrickgoldcom
notes to the consolidated financial statements continued  
 
18 property plant and equipment continued 
the following amounts were included in property plant and equipment where the group is a lessee under a finance lease 
in thousands of united states dollars  
as at 
31 december 
2011 
as at 
31 december 
2010 
cost – capitalised finance leases   67223 46822 
accumulated depreciation   7582 4203
net carrying amount   59641 42619 
19 goodwill and intangible assets 
for the year ended 31 december 2011  
in thousands of united states dollars goodwill  
acquired 
exploration 
and evaluation 
properties  total 
opening net book amount
1
 178420  80093 258513
additions –  – –
closing net book value 178420  80093 258513
 
at 31 december 2011    
cost  394898  80093 474991
accumulated impairment 216478  – 216478
net book amount 178420  80093 258513
 
for the year ended 31 december 2010  
in thousands of united states dollars goodwill  
acquired 
exploration 
and evaluation 
properties  total 
opening net book amount 156397   – 156397 
additions 22023  80093 102116
closing net book value 178420   80093 258513 
 
at 31 december 2010    
cost  394898   80093 474991 
accumulated impairment 216478  – 216478
net book amount 178420   80093 258513 
1 the group’s opening goodwill arose from preipo acquisitions by barrick gold corporation and african barrick gold acquisition of tusker gold ltd on 27 april 2010 the goodwill 
allocated to the group has been presented as if the group acquired this business as of the acquisition date 
goodwill and accumulated impairment losses by operating segments 
in thousands of united states dollars   north mara  bulyanhulu  tulawaka  other  total 
at 1 january 2010 21046 121546 13805   – 156397 
additions – – –  22023 22023
at 1 january 2011 21046 121546 13805  22023 178420
at 31 december 2011 21046 121546 13805  22023 178420
cost  237524 121546 13805  22023 394898
accumulated impairments 216478 – –  – 216478
   overview performance governance f inanc ial 
s tatements
shareholder 
information
149
ann ual report and acco unts 2011
notes to the consolidated financial statements continued  
 
18 property plant and equipment continued 
the following amounts were included in property plant and equipment where the group is a lessee under a finance lease 
in thousands of united states dollars  
as at 
31 december 
2011 
as at 
31 december 
2010 
cost – capitalised finance leases   67223 46822 
accumulated depreciation   7582 4203
net carrying amount   59641 42619 
19 goodwill and intangible assets 
for the year ended 31 december 2011  
in thousands of united states dollars goodwill  
acquired 
exploration 
and evaluation 
properties  total 
opening net book amount
1
 178420  80093 258513
additions –  – –
closing net book value 178420  80093 258513
 
at 31 december 2011    
cost  394898  80093 474991
accumulated impairment 216478  – 216478
net book amount 178420  80093 258513
 
for the year ended 31 december 2010  
in thousands of united states dollars goodwill  
acquired 
exploration 
and evaluation 
properties  total 
opening net book amount 156397   – 156397 
additions 22023  80093 102116
closing net book value 178420   80093 258513 
 
at 31 december 2010    
cost  394898   80093 474991 
accumulated impairment 216478  – 216478
net book amount 178420   80093 258513 
1 the group’s opening goodwill arose from preipo acquisitions by barrick gold corporation and african barrick gold acquisition of tusker gold ltd on 27 april 2010 the goodwill 
allocated to the group has been presented as if the group acquired this business as of the acquisition date 
goodwill and accumulated impairment losses by operating segments 
in thousands of united states dollars   north mara  bulyanhulu  tulawaka  other  total 
at 1 january 2010 21046 121546 13805   – 156397 
additions – – –  22023 22023
at 1 january 2011 21046 121546 13805  22023 178420
at 31 december 2011 21046 121546 13805  22023 178420
cost  237524 121546 13805  22023 394898
accumulated impairments 216478 – –  – 216478
  
 
 
in accordance with ias 38 “intangible assets” a review for impairment of goodwill was undertaken the review compared the recoverable amount 
for goodwill for each cash generating unit cgu to the carrying value of the cgu including goodwill the key economic assumptions used in this 
review were 
  
for the year ended 
31 december 
2011 
for the year ended 
31 december 
2010 
longterm gold price per ounce
2
  1600 1150
south african rand uszar
3
  700 800
tanzanian shilling ustzs  1600 1400
longterm oil price per barrel  90 75
discount rates  502–596 712–867
npv multiples  100–140 120–180
2 shortterm gold price of us1600 per ounce used for 2012 and 2013 cash flow forecast 
3 shortterm exchange rate of 700 used for 2012 and 2013 cash flow forecast 
4 no reasonable changes in assumptions would result in an impairment to goodwill 
20 deferred tax assets and liabilities 
unrecognised deferred tax assets 
deferred tax assets have not been recognised in respect of the following items 
in thousands of united states dollars  
as at 
31 december 
2011 
as at 
31 december 
2010 
tax losses  218455 195693
total  218455 195693
the above tax losses which translate into deferred tax assets of approximately us65 million 2010 us59 million have not bee n recognised in 
respect of these items due to uncertainties regarding availability of tax losses or there being uncertainty regarding future t axable income against 
which these assets can be utilised 
recognised deferred tax assets and liabilities 
deferred tax assets and liabilities are attributable to the following 
  assets  liabilities  net 
balance sheet classifications 
in thousands of united states dollars   2011  2010  2011  2010  2011  2010 
property plant and equipment  – – 475834 441758   475834 441758
provisions  6342 12994 – –  6342 12994
interest deferrals  12999 7213 – –   12999 7213
tusker acquisition  – – 22023 22023   22023 22023
tax loss carryforwards  384501 428658 – –   384501 428658
net deferred tax assetsliabilities  403842 448865 497857 463781   94015 14916
 
 
  assets   liabilities   net  
legal entities  
in thousands of united states dollars   2011  2010  2011  2010  2011  2010 
north mara gold mine limited  – – 36404 13865   36404 13865
bulyanhulu gold mine limited  54974 121116 – –   54974 121116
pangea minerals limited  – – 95828 100297   95828 100297
other  555 153 17312 22023   16757 21870
net deferred tax assetsliabilities  55529 121269 149544 136185   94015 14916
uncertainties regarding availability of tax losses in respect of enquiries raised and additional tax assessments issued by the tra have been 
measured using the single best estimate of likely outcome approa ch resulting in the recognition of substantially all the relate d deferred tax assets  
and liabilities alternative acceptable measurement policies eg on a weighted average expected outcome basis could result i n a change to deferred 
tax assets and liabilities being recognised and the deferred tax charge in the income statement 
   150
www africanbarrickgoldcom
notes to the consolidated financial statements continued  
 
20 deferred tax assets and liabilities continued 
no deferred tax has been recognised in respect of temporary differences associated with investments in subsidiaries where the group is in a position 
to control the timing of the reversal of the temporary differences and it is probable that such differences will not reverse in the foreseeable future 
the aggregate amount of temporary differences associated with such investments in subsidiaries is represented by the contributi on of those 
investments to the group’s retained earnings and amounted to us141 million 2010 us62 million 
21 other assets 
in thousands of united states dollars  
as at 
31 december 
2011 
as at 
31 december 
2010 
amounts due from government
1
  28211 24844 
operating lease prepayments – tanesco powerlines  2643 4210 
prepayments – acquisition of rights over leasehold land
2
  14289 7444 
noncurrent portion of indirect tax receivable
3
  62976 63174
village housing  320 465 
deferred finance charges  2219 3813
other  – 508
total  110658 104458
1 included in this amount are amounts rece ivable from the tanzanian social security fund of us120 million 2010 us81 milli on as well as amounts due from tanesco of 
us123 million 2010 us153 million 
2 prepayment made to the landowners in respect of acquisition of the rights over the use of leasehold land 
3 the noncurrent portion of the indirect tax receivables has been discounted to its current value using an effective interest rate of 5 2010 57 this resulted in a discounting  
charge of usnil 2010 us68 million to the income statement refer note 8 
22 share capital and share premium 
  number  £’000  
share capital 
us’000  
share premium 
us’000 
at 12 january 2010 1–  ––
issuance of ordinary shares to bgc  303246949 30325  45796 –
issuance of shares on ipo 101082317 10108  15415 870950
issuance of overallotment shares 5756232 576  886 50085
transaction costs – –  – 53933
at 31 december 2010 410085499 41009  62097 867102
at 31 december 2011 410085499 41009  62097 867102
the nominal value of each ordinary share is 10 pence no share movements have taken place in the current year  
23 stockbased compensation 
stock options 
stock options are granted to executive directors and to selected employees the exercise price of the granted options is determined by the 
compensation committee before the grant of an option provided that this price cannot be less than the average of the middlemar ket quotation  
of such shares as derived from the london stock exchange dail y official list for the three dealing days immediately preceding the date of  
grant options outstanding at the end of the year expire in 2017 and 2018 297865 of the optio ns granted were exercisable at 31 december 2011  
the vesting period of the options is four years with an exercise period of three years 
movements in the number of options outstanding and their related weighted average exercise prices are reflected in pence as follows 
for the year ended 31 december  
average exercise 
price in pence 
per share
2011  
options  
2011  
average exercise 
price in pence 
per share 
2010  
options 
2010 
at 1 january 536 1221459  – –
granted 497 511669  539 1326459
forfeited 568 22500  568 105000
at 31 december 524 1710628  536 1221459
 
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151
ann ual report and acco unts 2011
notes to the consolidated financial statements continued  
 
20 deferred tax assets and liabilities continued 
no deferred tax has been recognised in respect of temporary differences associated with investments in subsidiaries where the group is in a position 
to control the timing of the reversal of the temporary differences and it is probable that such differences will not reverse in the foreseeable future 
the aggregate amount of temporary differences associated with such investments in subsidiaries is represented by the contributi on of those 
investments to the group’s retained earnings and amounted to us141 million 2010 us62 million 
21 other assets 
in thousands of united states dollars  
as at 
31 december 
2011 
as at 
31 december 
2010 
amounts due from government
1
  28211 24844 
operating lease prepayments – tanesco powerlines  2643 4210 
prepayments – acquisition of rights over leasehold land
2
  14289 7444 
noncurrent portion of indirect tax receivable
3
  62976 63174
village housing  320 465 
deferred finance charges  2219 3813
other  – 508
total  110658 104458
1 included in this amount are amounts rece ivable from the tanzanian social security fund of us120 million 2010 us81 milli on as well as amounts due from tanesco of 
us123 million 2010 us153 million 
2 prepayment made to the landowners in respect of acquisition of the rights over the use of leasehold land 
3 the noncurrent portion of the indirect tax receivables has been discounted to its current value using an effective interest rate of 5 2010 57 this resulted in a discounting  
charge of usnil 2010 us68 million to the income statement refer note 8 
22 share capital and share premium 
  number  £’000  
share capital 
us’000  
share premium 
us’000 
at 12 january 2010 1–  ––
issuance of ordinary shares to bgc  303246949 30325  45796 –
issuance of shares on ipo 101082317 10108  15415 870950
issuance of overallotment shares 5756232 576  886 50085
transaction costs – –  – 53933
at 31 december 2010 410085499 41009  62097 867102
at 31 december 2011 410085499 41009  62097 867102
the nominal value of each ordinary share is 10 pence no share movements have taken place in the current year  
23 stockbased compensation 
stock options 
stock options are granted to executive directors and to selected employees the exercise price of the granted options is determined by the 
compensation committee before the grant of an option provided that this price cannot be less than the average of the middlemar ket quotation  
of such shares as derived from the london stock exchange dail y official list for the three dealing days immediately preceding the date of  
grant options outstanding at the end of the year expire in 2017 and 2018 297865 of the optio ns granted were exercisable at 31 december 2011  
the vesting period of the options is four years with an exercise period of three years 
movements in the number of options outstanding and their related weighted average exercise prices are reflected in pence as follows 
for the year ended 31 december  
average exercise 
price in pence 
per share
2011  
options  
2011  
average exercise 
price in pence 
per share 
2010  
options 
2010 
at 1 january 536 1221459  – –
granted 497 511669  539 1326459
forfeited 568 22500  568 105000
at 31 december 524 1710628  536 1221459
 
  
 
 
a summary of the awards of the group’s equitysettled st ock options at 31 december 2011 is presented below 
awards made in 2010  number  
weighted average 
exercise price in 
pence per share  
weighted average 
remaining 
contractual life  
weighted average 
fair value in pence 
per share 
27 april 600000 568  53 217
29 july 60000 543  56 207
25 november 666459 512  59 143
awards made in 2011   
29 november 511669 497  69 166
the fair value of each award on the day of grant was estimated using a lattice valuation approach the expected future volatili ty has been 
determined by reference to the historical volatility the key assumptions used in the valuation are noted in the following table 
awards made in 2011 
 riskfree 
interest rate 
  
expected volatility 
  
dividend yield  
  
suboptimal 
exercise multiple 
times  
option lifetime 
years 
29 november 146 425 080  16 7
restricted share units 
included in other noncurrent liabilities are rsus with a fair value of us35 million as at 31 december 2011 2010 us77 million 
  
number of 
rsus  
fair value 
us’000 
at 1 january 2010   339679 4687
settled for cash  52032 2743
forfeited  11796 622
granted  293186 110
credits for dividends  – –
change in value  – 6262
at 31 december 2010  569037 7694
settled for cash  93223 4259
forfeited  1121 5
granted  410415 109
credits for dividends  2894 54
change in value  – 116
at 31 december 2011  888002 3477
this table shows both legacy rsu and rsu plans the units granted during the year were solely as part of the rsu plan based on the abg shares 
performance restricted share units 
included in other noncurrent liabilities are prsus with a fair value of us402 thousand as at 31 december 2011 2010 us109 thousand 
  
number of 
prsus  
fair value 
us’000 
at 1 january 2010   – –
granted  144612 109
at 31 december 2010  144612 109
granted  389366 112
credits for dividends  929 2
change in value  – 179
at 31 december 2011  534907 402
 
   152
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notes to the consolidated financial statements continued  
 
24 trade and other payables 
in thousands of united states dollars  
as at 
31 december 
2011 
as at 
31 december 
2010 
trade payables  55790 23133
accrued expenses
1
  71357 53599
payrollrelated payables
1
  19854 29695
contract retentions  1056 1503 
royalty payable  9438 8482 
income tax payable  431 309
trade payables to related parties note 32  3990 3240
total  161916 119961
1 the prior year balance has been restated to transfer payroll and bonus accruals to payrollrelated payables 
trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from sup pliers trade payables 
are classified as current liabilities if payment is due within one year or less if not they are presented as noncurrent liabilities trade payables are 
recognised initially at fair value and subsequently measured at amortised cost using the effective interest method 
terms and conditions of the above payables liabilities 
• trade payables are noninterest bearing and are normally settled on 30day of statement terms 
• accruals and other payables are noninterest bearing and have an average term of 3060 days 
25 provisions 
  rehabilitation1  other2  total 
in thousands of united states dollars  2011  2010  2011  2010  2011  2010 
at 1 january  101477 72164 11467 11400   112944 83564
change in estimate  52761 27948 2904 67   49857 28015
utilised during the year  – – 7529 –  7529 –
unwinding of discount  3344 1365 – –  3344 1365
at 31 december  157582 101477 1034 11467   158616 112944 
current portion  – – 1034 4000  1034 4000
noncurrent portion  157582 101477 – 7467   157582 108944 
1 rehabilitation provisions relate to the decommissioning costs expected to be incurred for the operating mines this expenditure arises at different times over the life of mine for the different 
mine sites and is expected to be utilised in terms of cash outflows between years 2013 and 2034 and beyond varying from mine site to mine site  
2 other provisions relate to provisions for legal and taxrelated liabilities where the outcome is not yet certain but it is expected that it will lead to a probable outflow of economic benefits  
in future  
rehabilitation obligations arise from the acquisition development construction and normal operation of mining property plant and equipment 
due to government controls and regulations that protect the envi ronment on the closure and reclamation of mining properties the major parts  
of the carrying amount of the obligation relate to tailings and heap leach pad closurerehabilitation demolition of buildings mine facilities ongoing 
water treatment and ongoing care and maintenance of closed mines the fair values of rehabilitation provisions are measured by discounting the 
expected cash flows using a discount factor that reflects the creditadjusted riskfree rate of interest we prepare estimates of the timing and amount 
of expected cash flows when an obligation is incurred we update expected cash flows to reflect changes in facts and circumstan ces the principal 
factors that can cause expected cash flows to change are the co nstruction of new processing facilities changes in the quantities of material in 
reserves and a corresponding change in the life of mine plan changing ore characteristics that impact required environmental protection measures 
and related costs changes in water quality that impact the exten t of water treatment required and changes in laws and regulat ions governing the 
protection of the environment 
each period we assess cost estimates and other assumptions used in the valuation of the rehabilitation provision at each of our mineral properties  
to reflect events changes in circumstances and new information available changes in these cost estimates and assumptions are recorded as an 
adjustment to the carrying amount of the corresponding asset rehabilitation provisions are adjusted to reflect the passage of time accretion 
calculated by applying the discount factor implicit in the initial fairvalue measurement to the beginningofperiod carrying amount of the 
provision settlement gainslosses will be recorded in other income expense 
other environmental remediation costs that are not rehabilitation provisions are expensed as incurred 
   overview performance governance f inanc ial 
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shareholder 
information
153
ann ual report and acco unts 2011
notes to the consolidated financial statements continued  
 
24 trade and other payables 
in thousands of united states dollars  
as at 
31 december 
2011 
as at 
31 december 
2010 
trade payables  55790 23133
accrued expenses
1
  71357 53599
payrollrelated payables
1
  19854 29695
contract retentions  1056 1503 
royalty payable  9438 8482 
income tax payable  431 309
trade payables to related parties note 32  3990 3240
total  161916 119961
1 the prior year balance has been restated to transfer payroll and bonus accruals to payrollrelated payables 
trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from sup pliers trade payables 
are classified as current liabilities if payment is due within one year or less if not they are presented as noncurrent liabilities trade payables are 
recognised initially at fair value and subsequently measured at amortised cost using the effective interest method 
terms and conditions of the above payables liabilities 
• trade payables are noninterest bearing and are normally settled on 30day of statement terms 
• accruals and other payables are noninterest bearing and have an average term of 3060 days 
25 provisions 
  rehabilitation1  other2  total 
in thousands of united states dollars  2011  2010  2011  2010  2011  2010 
at 1 january  101477 72164 11467 11400   112944 83564
change in estimate  52761 27948 2904 67   49857 28015
utilised during the year  – – 7529 –  7529 –
unwinding of discount  3344 1365 – –  3344 1365
at 31 december  157582 101477 1034 11467   158616 112944 
current portion  – – 1034 4000  1034 4000
noncurrent portion  157582 101477 – 7467   157582 108944 
1 rehabilitation provisions relate to the decommissioning costs expected to be incurred for the operating mines this expenditure arises at different times over the life of mine for the different 
mine sites and is expected to be utilised in terms of cash outflows between years 2013 and 2034 and beyond varying from mine site to mine site  
2 other provisions relate to provisions for legal and taxrelated liabilities where the outcome is not yet certain but it is ex pected that it will lead to a probable outflow of economic benefits  
in future  
rehabilitation obligations arise from the acquisition development construction and normal operation of mining property plant and equipment 
due to government controls and regulations that protect the envi ronment on the closure and reclamation of mining properties the major parts  
of the carrying amount of the obligation relate to tailings and heap leach pad closurerehabilitation demolition of buildings mine facilities ongoing 
water treatment and ongoing care and maintenance of closed mines the fair values of rehabilitation provisions are measured by discounting the 
expected cash flows using a discount factor that reflects the creditadjusted riskfree rate of interest we prepare estimates of the timing and amount 
of expected cash flows when an obligation is incurred we update expected cash flows to reflect changes in facts and circumstan ces the principal 
factors that can cause expected cash flows to change are the co nstruction of new processing facilities changes in the quantities of material in 
reserves and a corresponding change in the life of mine plan changing ore characteristics that impact required environmental protection measures 
and related costs changes in water quality that impact the exten t of water treatment required and changes in laws and regulat ions governing the 
protection of the environment 
each period we assess cost estimates and other assumptions used in the valuation of the rehabilitation provision at each of our mineral properties  
to reflect events changes in circumstances and new information available changes in these cost estimates and assumptions are recorded as an 
adjustment to the carrying amount of the corresponding asset rehabilitation provisions are adjusted to reflect the passage of time accretion 
calculated by applying the discount factor implicit in the initial fairvalue measurement to the beginningofperiod carrying amount of the 
provision settlement gainslosses will be recorded in other income expense 
other environmental remediation costs that are not rehabilitation provisions are expensed as incurred 
  
 
 
26 other liabilities 
in thousands of united states dollars  
as at 
31 december 
2011 
as at 
31 december 
2010 
finance lease liabilities  18217 –
employee benefit rsu liability  3879 7803
other  3472 3472
total  25568 11275
current portion  6580 3792
noncurrent portion  18988 7483
finance lease liabilities are capitalised at an effective interest rate of 5 per annum the lease terms are three and four yea rs with purchase options 
at the end of the term instalments are payable weekly lease liab ilities are effectively secured as the rights to the leased asset revert to the lessor in 
the event of default 
in thousands of united states dollars  
as at 
31 december 
2011 
as at 
31 december 
2010 
gross finance lease liabilities – minimum lease payments 
– no later than 1 year  4711 –
– between 1 and 3 years  13113 –
– between 3 and 5 years  2380 –
  20204 –
future finance charges on finance leases  1987 –
present value of finance lease liabilities  18217 –
  
 
 in thousands of united states dollars  
as at 
31 december 
2011 
as at 
31 december 
2010 
present value of finance lease liabilities  
– no later than 1 year  3862 –
– between 1 and 3 years  12028 –
– between 3 and 5 years  2327 –
present value of finance lease liabilities  18217 –
27 financial assets and liabilities 
a financial assets 
  carrying value  fair value 
in thousands of united states dollars  2011  2010  2011  2010 
cash and cash equivalents 584154 401012   584154 401012 
trade and other receivables 29858 59214   29858 59214 
derivative financial instruments 4263 –  4263 –
total other assets 143929 174886   143929 174886
total financial assets 762204 635112   762204 635112
less current financial assets   
cash and cash equivalents 584154 401012  584154 401012 
trade and other receivables 29858 59214  29858 59214 
derivative financial instruments 4050 –  4050 –
other current assets  33271 70428  33271 70428 
total other noncurrent financial assets 110871 104458   110871 104458
the fair value of financial assets excluding other assets equal their carrying amount as the impact of discounting is not significant included in 
other assets are indirect tax receivables from the tanzanian revenue authority which have been discounted to their present val ue refer to  
note 16 and note 21 
   154
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notes to the consolidated financial statements continued  
 
27 financial assets and liabilities continued 
b financial liabilities 
  carrying value  fair value 
in thousands of united states dollars  2011  2010  2011  2010 
derivative financial instruments 114 3658   114 3658 
trade and other payables 161916 119961  161916 119916
other liabilities
1
 25568 11275   25568 11275
total  187598 134894   187598 134894
less current financial liabilities    
derivative financial instruments 58 1904  58 1904
trade and other payables 161916 119961  161916 119961
other current liabilities
1
 6580 3792  6580 3792
total noncurrent portion of financial liabilities 19044 9237   19044 9237
1 the prior year other liabilities has been restated to include both current and noncurrent liabilities 
other liabilities relate to cash settled share based plans and thei r valuation is based on unadjusted quoted prices in active m arkets for identical 
financial instruments also included in other liabilities are the finance lease liabilities and their valuation is based on obs ervable market data 
derivative financial instruments are valued based upon inputs that are observable for the financial instruments which includes quoted prices for 
similar instruments or identical instruments in markets which are not considered to be active or either directly or indirectly based on observable 
markets data  
revolving credit facility 
on 24 november 2010 the group concluded negotiations with a syndicate of commercial banks led by citibank for the provision of a revolving 
credit facility in a maximum aggregate amount of us150 million the facility has been provided to service the general corporate needs of the 
group and to fund potential acquisitions all provisions contained in the credit facility documentation have been negotiated on normal commercial 
and customary terms for such finance arrangements during 2011 the term of the facility was extended to 2014 and when drawn th e spread over 
libor will be 350 basis points at 31 december 2011 none of th e funds were drawn under the facility the shares of all significant subsidiaries have 
been pledged as security for the loan costs associated with the revolving credit facility have been included in finance expenses refer to note 10 
28 derivative financial instruments 
the group’s derivatives as at 31 december 2011 and 31 december 2010 are summarised below 
summary of derivatives as at 31 december 2011 
in thousands of united states dollars 
 assets liabilities   
net 
fair value  current  noncurrent current  noncurrent 
 
commodity contracts designated as cash flow hedges 384 – –  – 384
commodity contracts not designated as hedges 3109 148 –  21 3236
currency contracts not designated as hedges 557 65 58  35 529
total 4050 213 58  56 4149
 
summary of derivatives as at 31 december 2010 
in thousands of united states dollars 
 assets  liabilities   
net 
fair value  current  noncurrent  current  noncurrent 
 
commodity contracts designated as cash flow hedges – – –  – –
commodity contracts not designated as hedges – – 1904  1754 3658
total – – 1904  1754 3658
 
   overview performance governance f inanc ial 
s tatements
shareholder 
information
155
ann ual report and acco unts 2011
notes to the consolidated financial statements continued  
 
27 financial assets and liabilities continued 
b financial liabilities 
  carrying value  fair value 
in thousands of united states dollars  2011  2010  2011  2010 
derivative financial instruments 114 3658   114 3658 
trade and other payables 161916 119961  161916 119916
other liabilities
1
 25568 11275   25568 11275
total  187598 134894   187598 134894
less current financial liabilities    
derivative financial instruments 58 1904  58 1904
trade and other payables 161916 119961  161916 119961
other current liabilities
1
 6580 3792  6580 3792
total noncurrent portion of financial liabilities 19044 9237   19044 9237
1 the prior year other liabilities has been restated to include both current and noncurrent liabilities 
other liabilities relate to cash settled share based plans and thei r valuation is based on unadjusted quoted prices in active m arkets for identical 
financial instruments also included in other liabilities are the finance lease liabilities and their valuation is based on obs ervable market data 
derivative financial instruments are valued based upon inputs that are observable for the financial instruments which includes quoted prices for 
similar instruments or identical instruments in markets which are not considered to be active or either directly or indirectly based on observable 
markets data  
revolving credit facility 
on 24 november 2010 the group concluded negotiations with a syndicate of commercial banks led by citibank for the provision of a revolving 
credit facility in a maximum aggregate amount of us150 million the facility has been provided to service the general corporate needs of the 
group and to fund potential acquisitions all provisions contained in the credit facility documentation have been negotiated on normal commercial 
and customary terms for such finance arrangements during 2011 the term of the facility was extended to 2014 and when drawn th e spread over 
libor will be 350 basis points at 31 december 2011 none of th e funds were drawn under the facility the shares of all significant subsidiaries have 
been pledged as security for the loan costs associated with the revolving credit facility have been included in finance expenses refer to note 10 
28 derivative financial instruments 
the group’s derivatives as at 31 december 2011 and 31 december 2010 are summarised below 
summary of derivatives as at 31 december 2011 
in thousands of united states dollars 
 assets liabilities   
net 
fair value  current  noncurrent current  noncurrent 
 
commodity contracts designated as cash flow hedges 384 – –  – 384
commodity contracts not designated as hedges 3109 148 –  21 3236
currency contracts not designated as hedges 557 65 58  35 529
total 4050 213 58  56 4149
 
summary of derivatives as at 31 december 2010 
in thousands of united states dollars 
 assets  liabilities   
net 
fair value  current  noncurrent  current  noncurrent 
 
commodity contracts designated as cash flow hedges – – –  – –
commodity contracts not designated as hedges – – 1904  1754 3658
total – – 1904  1754 3658
 
  
 
 
 
 net fair value 
derivative financial instruments designated as cash flow hedges 
in thousands of united states dollars 
 2011  2010 
 asset  liability  asset  liability 
fuel option contracts 384 –  – –
total fair value 384 –  – –
less than 1 year 384 –  – –
between 1 and 3 years – –  – –
total fair value 384 –  – –
commodity contracts 
during the year the group added 220 thousand barrels of brent oil net purchase options for calendar year 2012 the designated contracts act as  
a hedge against variability in market prices in a predefined range on the cost of future fuel purchases over the next year at 31 december 2011  
the group had 220 thousand barrels of brent crude oil net purchase options outstanding each contract consists of sold put options bought call 
options and sold call options with average strike prices of us8450 per barrel us110 per barrel and us130 per barrel respec tively 
hedged items are identified as the first stated quantity of forecasted consumption purchased in a future month hedge effective ness is assessed  
using linear regression utilising the concept of the hypothetical derivative method 
the effective portion of changes in intrinsic value of the commodity contracts is recorded in other comprehensive income until the forecasted 
expenditure impacts earnings 
 net fair value 
derivative financial instruments not designated as hedges 
in thousands of united states dollars 
 2011  2010 
 asset  liability  asset  liability 
copper collar contracts 2569 –  – 3658
silver collar contracts 688 –  – –
fuel option contracts – 21  – –
currency collar contracts 622 93  – –
total fair value 3879 114  – 3658
less than 1 year 3666 58  – 1904
between 1 and 3 years 213 56  – 1754
total fair value 3879 114  – 3658
commodity contracts 
during 2011 the group entered into zero cost collars to manage the impact of copper and silver price fluctuations and option contracts to manage 
the impact of fuel price fluctuations the group does not use such derivative instruments for speculative trading purposes 
these transactions are economic hedges and do not qualify for hedge accounting treatment for the positions changes in the fai r value of these 
options are recorded as a component of other incomeexpense in the income statem ent at 31 december 2011 the group had 10582 thousand 
pounds of copper collar contracts outstanding containing purchased put and sold call options with average strike prices of us3 34 per pound  
and us484 per pound respectively 2010 21826 thousand pounds of collar contracts outstanding containing purchased put and c all options  
with an average strike price of us325 per pound and us477 per pound respectively these contracts mature in 2012 
 at 31 december 2011 the group had 216 thousand ounces of silver collar contracts outstanding containing purchased put and sol d call options 
with average strike prices of us28 per ounce and us49 per ounce respectively these contracts mature in 2012 and 2013 respect ively 
in addition the group had 90 thousand barrels of brent oil opti on contracts for calendar year 2013 these option contracts did not meet the 
requirements for hedge accounting however they still economically hedge fuel expenses these contracts have the same structure as the existing  
cash flow hedges for 2012 and have strike prices of us77 us110 and us135 
   156
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notes to the consolidated financial statements continued  
 
28 derivative financial instruments continued 
currency contracts 
during the year currency contracts totalling us63 million of us dollarsouth african rand contracts were entered into to hedge forecasted  
south african rand denominated expenditure the transactions are economic hedges and do not qualify for hedge accounting treatment  
changes in the fair value of these options are recorded as a component of other income expense in the income statement the outstanding contracts 
hedge the variability of the us dollar amount of those expenditures caused by change s in currency exchange rates in a predefined range over the 
next two years these contracts consist of purchased put options and sold call options with average strike prices of r810 and r910 respectively  
the contracts mature in 2012 and 2013 
gainslosses on derivative financial instruments 
in thousands of united states dollars 
 amount of gain recognised in oci  gainloss recognised in income 
 2011  2010  2011  2010 
gains on cash flow hedges   
fuel option contracts – –  384 –
gainslosses on derivative financial instruments not designated as hedges  
copper collar contracts – –  6321 3658
silver collar contracts – –  688 –
fuel option contracts – –  21 –
currency collar contracts – –  529 –
total gainloss – –  7901 3658
29 financial risk management 
the group has exposure to the following risks through its commercial and financial operations 
a market risk including commodity price foreign currency and interest rate risks 
b credit risk and 
c liquidity risk 
this note presents information about the group’s exposure to each of the above risks and the group’s objectives policies and processes for assessing 
and managing risk further quantitative disclosures are included thro ughout the financial statements 
the board of directors has overall responsibility for the establishment and oversight of the group’s risk management framework  
the group’s risk management policies are established to identify and analyse the risks faced by the group to set appropriate risk limits and 
controls and to monitor risks and adherence to limits risk management policies and systems are reviewed regularly to reflect changes in market 
conditions and the group’s activities the group through its training and management standards and procedures aims to maintai n a disciplined 
and constructive control environment in which all employees understand their roles and obligations 
the board of directors has responsibility for overseeing how man agement monitors compliance with the group’s risk management policies  
and procedures and reviews the adequacy of the risk management framework in relation to the risks faced by the group the audit committee  
is assisted in its oversight role by internal audit which undertakes both regular and ad hoc reviews of risk management control s and procedures  
the results of which are reported to the audit committee 
a market risk including commodity price foreign currency and interest rate risks 
market risk is the risk that changes in market factors such as commodity prices foreign exchan ge rates or interest rates will affect the group’s 
income or the value of its financial instruments 
gold price  
the market price of gold is one of the most significant factors in determining the profitability of the group’s operations the price of gold is  
subject to volatile price movements over short periods of time especially in the current market environment and is affected b y numerous industry 
and macroeconomic factors that are beyond the group’s control in 2011 the price ranged from us1308 to us1921 per ounce an d closed  
at us1531 per ounce gold prices averaged us1572 a us347 per ounce improvement on the us1225 per ounce average in the prior year  
the group’s policy is to sell gold at prevailing market prices 
   overview performance governance f inanc ial 
s tatements
shareholder 
information
157
ann ual report and acco unts 2011
notes to the consolidated financial statements continued  
 
28 derivative financial instruments continued 
currency contracts 
during the year currency contracts totalling us63 million of us dollarsouth african rand contracts were entered into to hedge forecasted  
south african rand denominated expenditure the transactions are economic hedges and do not qualify for hedge accounting treatment  
changes in the fair value of these options are recorded as a component of other income expense in the income statement the outstanding contracts 
hedge the variability of the us dollar amount of those expenditures caused by change s in currency exchange rates in a predefined range over the 
next two years these contracts consist of purchased put options and sold call options with average strike prices of r810 and r910 respectively  
the contracts mature in 2012 and 2013 
gainslosses on derivative financial instruments 
in thousands of united states dollars 
 amount of gain recognised in oci  gainloss recognised in income 
 2011  2010  2011  2010 
gains on cash flow hedges   
fuel option contracts – –  384 –
gainslosses on derivative financial instruments not designated as hedges  
copper collar contracts – –  6321 3658
silver collar contracts – –  688 –
fuel option contracts – –  21 –
currency collar contracts – –  529 –
total gainloss – –  7901 3658
29 financial risk management 
the group has exposure to the following risks through its commercial and financial operations 
a market risk including commodity price foreign currency and interest rate risks 
b credit risk and 
c liquidity risk 
this note presents information about the group’s exposure to each of the above risks and the group’s objectives policies and processes for assessing 
and managing risk further quantitative disclosures are included thro ughout the financial statements 
the board of directors has overall responsibility for the establishment and oversight of the group’s risk management framework  
the group’s risk management policies are established to identify and analyse the risks faced by the group to set appropriate risk limits and 
controls and to monitor risks and adherence to limits risk management policies and systems are reviewed regularly to reflect changes in market 
conditions and the group’s activities the group through its training and management standards and procedures aims to maintai n a disciplined 
and constructive control environment in which all employees understand their roles and obligations 
the board of directors has responsibility for overseeing how man agement monitors compliance with the group’s risk management policies  
and procedures and reviews the adequacy of the risk management framework in relation to the risks faced by the group the audit committee  
is assisted in its oversight role by internal audit which undertakes both regular and ad hoc reviews of risk management control s and procedures  
the results of which are reported to the audit committee 
a market risk including commodity price foreign currency and interest rate risks 
market risk is the risk that changes in market factors such as commodity prices foreign exchan ge rates or interest rates will affect the group’s 
income or the value of its financial instruments 
gold price  
the market price of gold is one of the most significant factors in determining the profitability of the group’s operations the price of gold is  
subject to volatile price movements over short periods of time especially in the current market environment and is affected b y numerous industry 
and macroeconomic factors that are beyond the group’s control in 2011 the price ranged from us1308 to us1921 per ounce an d closed  
at us1531 per ounce gold prices averaged us1572 a us347 per ounce improvement on the us1225 per ounce average in the prior year  
the group’s policy is to sell gold at prevailing market prices 
  
 
 
the table below summarises the impact of changes in the market price of gold the impact is expressed in terms of the resulting change in the 
group’s profit after tax for the year or where applicable the change in equity the sensitivities are based on the assumption that the market price 
changes by 10 with all other variables held constant the impact of a similar change in copper and silver is not material to the group’s profit  
after tax 
gainloss associated with 10 increasedecrease from yearend price 
in thousands of united states dollars  
effect on 
profit after tax 
for the year ended 
31 december
2011  
effect on 
profit after tax 
for the year ended 
31 december
2010 
gold  78087 62556
copper price  
during 2010 and 2011 the group entered into zero cost collars to manage the impact of copper price fluctuations see note 28 for additional details  
in 2011 the price ranged from us308 to us460 per pound with an average market price of us400 per pound 2010 us342 pe r pound and 
closing at us343 per pound 
silver price  
during 2011 the group entered into collar contracts to manage silver price fluctuations see note 28 for additional details in 2011 the price  
ranged from us2616 to us4870 per ounce with an average market price of us3512 per pound 
oil price 
diesel fuel is refined from crude oil and is therefore subject to the same price volatility affecting crude oil prices during 2011 oil prices traded 
between us92 and us127 per barrel with an average market price of us111 per barrel to manage the impact of oil price fluctu ations  
brent oil option contracts were entered into during the year see note 28 for additional details 
the table below summarises the impact of changes in the market prices of crude oil the impact is expressed in terms of the resulting change  
in the group’s profit after tax for the year ended 31 december 2011 the sensitivities are based on the assumption that the mar ket price changes  
by us10 per barrel with all other variables held constant the effect on profit after tax before hedging is calculated based on actual consumption 
for the year and does not address the indirect impact of a change in the oil price on other costs 
gainloss associated with us10 decreaseincrease from yearend price 
in thousands of united states dollars  
effect on 
profit after tax 
for the year ended 
31 december
2011  
effect on 
profit after tax 
for the year ended 
31 december
2010 
oil  3098 2372
risks relating to the use of derivatives 
by using derivatives in addition to credit risk we are affected by market risk market risk is the risk that the fair value o f a derivative might be 
adversely affected by a change in commodity prices interest rates or currency exchange rates and that this in turn affects o ur financial condition 
we manage market risk by establishing and monitoring parameters that limit the types and degree of market risk that may be unde rtaken  
foreign currency risk 
the group’s transactions are denominated in a number of different currencies primarily us dollars shillings and rands the group has liabilities 
that are primarily denominated in us dollars the us dollar is the company’s and its subsidiaries ’ functional currency as well as the group’s 
presentation currency therefore transactions in currencies other than the us dollar give rise to foreign currency translation risk the group’s 
primary exposure to this risk arises from direct mining corporate administration exploration and evaluation and capital costs that are transacted  
in shillings and rands respectively consequently fluctuations in the us dollar shillingrand exchange rates increase the volatility of cost of sales 
corporate administration costs and overall net profits which are reported in us dollars the vast majority of expenditure is denominated and  
settled in us dollars consequently the effect of foreign exchange fluctuations on the group’s reported direct mining corporate administration 
exploration and evaluation and capital costs is not significant  
the exchange rates at the end of each financial year are detailed in note 2h 
historically the relationship between the gold price and the value of the shilling an d rand has provided a natural hedge against fluctuations in  
the exchange rate of these currencies against the us dollar ge nerally a strengthening of the shillingrand corresponds with an increase in the  
us dollar gold price which results in an increase in reported us dollar revenues  
   158
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notes to the consolidated financial statements continued  
 
29 financial risk management continued 
during the year randus dollar collar contracts were undertaken to hedge rand denominated expenditures during the year curre ncy contracts 
totalling us63 million of ussouth african rand have been designated against forecasted nonus denominated expenditure the outstanding 
contracts hedge the variability of the us dollar amount of those expenditures caused by changes in currency exchange rates over the next year  
refer to note 28 for more information 
the group does have significant financial assets denominated in a currency other than us dollar these financial assets are as follow 
in thousands of united states dollars  
as at 
31 december
2011  
as at 
31 december
2010 
indirect tax receivables denominated in tanzanian shillings 85347 121222
total  85347 121222
the following sensitivity analyses give the estimated effect of a reasonably possible change in the full year closing us dollar exchange rate on the 
value of the financial assets 
increasedecrease associated with 10 change of the us dollar as at 31 december 
in thousands of united states dollars  
effect on 
profit after tax 
for the year ended 
31 december
2011  
effect on 
profit after tax 
for the year ended 
31 december
2010 
increasedecrease associated with 10 change of the us dolla r 
us dollar strengthens by 10 to the tanzanian shilling  
increase in total indirect tax receivables  9483 13469
us dollar weakens by 10 to the tanzanian shillin g  
decrease in total indirect tax receivables  7759 11020
interest rate risk 
interest rate risk refers to the risk that the value of a financial instrument or cash flows associated with the instrument wil l fluctuate due to changes 
in market interest rates borrowings issued at variable rates expose the group to cash flow interest rate risk borrowings issued at fixed rates expose 
the group to fair value interest rate risk the group is also ex posed to interest rate risk on its cash and cash equivalents 
at present available funds are held with financial institutions at variable rates and primarily denominated in us dollars interest income is not 
materially affected by changes in shortterm interest rates the amount of interest expense recorded in the group’s consolidated income statement 
is not materially impacted by changes in shortterm interest rates due to the group’s low levels of interestbearing debt at present the revolving 
credit facility’s spread over libor will be 350 basis points on amounts drawn group debt levels are impacted by the amount of operating cash flow 
generated by its operating mines as well as capital expenditure requirements related to existing operations and development projects the group 
currently has no interest rate hedging in place as the interest income is not materially affected by changes in shortterm interest rates 
b credit risk 
credit risk is the risk that a third party might fail to fulfil its performance obligations under the terms of a financial inst rument for cash and cash 
equivalents and trade and other receivables credit risk represents the carrying amount on the balance sheet net of any overdr aft positions 
credit risk arises from cash and cash equivalents and deposits with banks as well as trade and other receivables the group’s financial assets  
are with counterparties whom the group considers have an appropriate credit rating location of credit risk is determined by physical location 
of the bank branch customer or counterparty the maximum allowable term of maturity for any individual security is 12 months investment 
counterparties must have a credit rating of at least baa2 or better by moody’s investor services or bbb by standard and poor’s no more than  
25 of the aggregate market value of the investment portfolio is maintained in any one country with the exception of the united states of america 
united kingdom and barbados or in any one industry group investments are held mainly in united states dollars and cash and ca sh equivalents  
in other foreign currencies are maintained for operational requirements 
with respect to other receivables the most significant debtor is the tanzanian revenue authority throughout the year abg has been actively 
involved in discussions with the tanzanian government and the tanzanian revenue authority to resolve the status of fuel excise levies and vat 
refunds for its operations these issues have been outstanding for some time and were further complicated by amendments made to certain tax  
laws which were passed in 2009 the amendments conflicted with ce rtain provisions contained in the group’s existing mineral development 
agreements “mdas” which guarantee the fiscal stability of its operations the government has adopted legislation to reverse t he amendments  overview performance governance f inanc ial 
s tatements
shareholder 
information
159
ann ual report and acco unts 2011
notes to the consolidated financial statements continued  
 
29 financial risk management continued 
during the year randus dollar collar contracts were undertaken to hedge rand denominated expenditures during the year curre ncy contracts 
totalling us63 million of ussouth african rand have been designated against forecasted nonus denominated expenditure the outstanding 
contracts hedge the variability of the us dollar amount of those expenditures caused by changes in currency exchange rates over the next year  
refer to note 28 for more information 
the group does have significant financial assets denominated in a currency other than us dollar these financial assets are as follow 
in thousands of united states dollars  
as at 
31 december
2011  
as at 
31 december
2010 
indirect tax receivables denominated in tanzanian shillings 85347 121222
total  85347 121222
the following sensitivity analyses give the estimated effect of a reasonably possible change in the full year closing us dollar exchange rate on the 
value of the financial assets 
increasedecrease associated with 10 change of the us dollar as at 31 december 
in thousands of united states dollars  
effect on 
profit after tax 
for the year ended 
31 december
2011  
effect on 
profit after tax 
for the year ended 
31 december
2010 
increasedecrease associated with 10 change of the us dolla r 
us dollar strengthens by 10 to the tanzanian shilling  
increase in total indirect tax receivables  9483 13469
us dollar weakens by 10 to the tanzanian shillin g  
decrease in total indirect tax receivables  7759 11020
interest rate risk 
interest rate risk refers to the risk that the value of a financial instrument or cash flows associated with the instrument wil l fluctuate due to changes 
in market interest rates borrowings issued at variable rates expose the group to cash flow interest rate risk borrowings issued at fixed rates expose 
the group to fair value interest rate risk the group is also ex posed to interest rate risk on its cash and cash equivalents 
at present available funds are held with financial institutions at variable rates and primarily denominated in us dollars interest income is not 
materially affected by changes in shortterm interest rates the amount of interest expense recorded in the group’s consolidated income statement 
is not materially impacted by changes in shortterm interest rates due to the group’s low levels of interestbearing debt at present the revolving 
credit facility’s spread over libor will be 350 basis points on amounts drawn group debt levels are impacted by the amount of operating cash flow 
generated by its operating mines as well as capital expenditure requirements related to existing operations and development projects the group 
currently has no interest rate hedging in place as the interest income is not materially affected by changes in shortterm interest rates 
b credit risk 
credit risk is the risk that a third party might fail to fulfil its performance obligations under the terms of a financial inst rument for cash and cash 
equivalents and trade and other receivables credit risk represents the carrying amount on the balance sheet net of any overdr aft positions 
credit risk arises from cash and cash equivalents and deposits with banks as well as trade and other receivables the group’s financial assets  
are with counterparties whom the group considers have an appropriate credit rating location of credit risk is determined by physical location 
of the bank branch customer or counterparty the maximum allowable term of maturity for any individual security is 12 months investment 
counterparties must have a credit rating of at least baa2 or better by moody’s investor services or bbb by standard and poor’s no more than  
25 of the aggregate market value of the investment portfolio is maintained in any one country with the exception of the united states of america 
united kingdom and barbados or in any one industry group investments are held mainly in united states dollars and cash and ca sh equivalents  
in other foreign currencies are maintained for operational requirements 
with respect to other receivables the most significant debtor is the tanzanian revenue authority throughout the year abg has been actively 
involved in discussions with the tanzanian government and the tanzanian revenue authority to resolve the status of fuel excise levies and vat 
refunds for its operations these issues have been outstanding for some time and were further complicated by amendments made to certain tax  
laws which were passed in 2009 the amendments conflicted with ce rtain provisions contained in the group’s existing mineral development 
agreements “mdas” which guarantee the fiscal stability of its operations the government has adopted legislation to reverse t he amendments 
 
 
which should allow for the fiscal and tax terms of our mdas to be honoured as at 31 december 2011 the discounted outstanding amounts due  
to the group were approximately us853 million during the third quarter the group si gned a memorandum of settlement with the tanzanian 
revenue authority tra to address the treatment of certain outsta nding indirect tax refunds in respect of fuel levies and valu e added taxation  
the terms of the memorandum of settlement allow abg to offset income tax payable against outstanding refunds for vat and fuel l evies as  
it becomes payable as a result of these changes tulawaka and buzwagi will effectively be treated as two separate entities for tax purposes  
with effect from 2007 further detail is included in notes 16 21 and 31b 
group policies are aimed at minimising losses as a result of a counterparty’s failure to honour its obligations individual exposures are monitored 
with trade customers subject to credit limits to ensure that th e group’s exposure to bad debts is not significant the group’s exposure to credit risk 
is influenced mainly by the individual characteristics of each counterparty the group’s financia l assets are with counterparties who the group 
considers have an appropriate credit rating during the year re ceivables to the value of us366 million were advanced by a financial institution 
under a factoring agreement this agreement reduces the risk of default of receivables further detail is included in note 16 
maximum exposure to credit risk at each reporting date is the carrying value of each class of financial assets in note 27 the group does not hold 
collateral as security for any trade receivables the group does not grade the credit quality of receivables  
c liquidity risk 
liquidity risk is the risk of loss from not having access to suff icient funds to meet both expected and unexpected cash demands  the group manages 
its exposure to liquidity risk by ensuring that its operating and strategic liquidity levels are well above minimum internal requirements prudent 
liquidity risk management includes maintaining sufficient cash balances and the availability of funding from an adequate amoun t of committed 
credit facilities at the end of both 2011 and 2010 the group was in a positive net cash position as disclosed in note 17 det ails of the undrawn 
revolving credit facility are given in note 27 
in the ordinary course of business the group receives cash procee ds from its operations and is required to fund working capita l and capital 
expenditure requirements the cash is managed to ensure surplus funds are invested to maximise returns while ensuring that capi tal is safeguarded 
to the maximum extent possible by investing only with financial institutions with a strong credit rating insignificant uncommitted overdraft 
facilities are maintained with several banking counterparties to meet the group’s normal funding requirements the group’s prim ary source  
of liquidity is operating cash flow and over the past two years the group has generated an average of about us516 million per year the principal 
risk factor affecting operating cash flow is market gold prices and production  
the principal uses of liquidity are sustaining capital expenditures at existing operating mines construction activities at development projects  
and interest payments sustaining capital expenditures have averaged about us124 million per year over the past two years  
the following table outlines the expected maturity of the group’ s significant financial assets into relevant maturity groupings based on the 
remaining period from the balance sheet date to the contractual maturity date as the amounts disclosed in the table are the co ntractual 
undiscounted cash flows these balances may not agree with the amounts disclosed in the balance sheet 
for the year ended 31 december 2011  
in thousands of united states dollars 
 
less than 
1 year  
1 to 3 
years  
3 to 5  
years  
over 5 
years  total 
cash and cash equivalents 584154 – –  – 584154
accounts receivable 29858 – –  – 29858
derivative assets 4050 213 –  – 4263
other receivables 33271 80326 30332  – 143929
total 651333 80539 30532  – 762204
 
 
for the year ended 31 december 2010  
in thousands of united states dollars 
 
less than 
1 year  
1 to 3 
years  
3 to 5  
years  
over 5 
years  total 
cash and cash equivalents 401012 – –   – 401012 
accounts receivable 59214 – –  – 59214
other receivables 70428 104458 –  – 174886
total 530654 104458 –   – 635112
 
   160
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notes to the consolidated financial statements continued  
 
29 financial risk management continued 
the following table outlines the expected maturity of the group’ s significant financial liabilities into relevant maturity groupings based on  
the remaining period from the balance sheet date to the contractual maturity date as the amounts disclosed in the table are the contractual 
undiscounted cash flows these balances may not agree with the amounts disclosed in the balance sheet 
for the year ended 31 december 2011  
in thousands of united states dollars 
 
less than 
1 year  
1 to 3 
years  
3 to 5  
years  
over 5 
years  total 
derivative liabilities 58 56 –  – 114
other liabilities 6580 13188 5800  – 25568
trade and other payables
1
 161485 – –  – 161485
total 168123 13244 5800  – 187167
 
for the year ended 31 december 2010  
in thousands of united states dollars 
 
less than 
1 year  
1 to 3 
years  
3 to 5  
years  
over 5 
years  total 
derivative liabilities 1904 1754 –  – 3658
other liabilities 3792 4011 3472  – 11275 
trade and other payables 119652 – –  – 119652
total 125348 5765 3472  – 134585
1 trade and other payables exclude statutory liabilities in the form of income tax payable  
management considers that the group has adequate current assets and forecast cash flow from operations to manage liquidity risks arising from 
settlement of current liabilities and noncurrent liabilities 
capital risk management 
the primary objective of the group’s capital management is to ensure that it maintains a strong balance sheet and low gearing ratio to support its 
business and provides financial flexibility in order to maximise shareholder value in order to ensure a strong balance sheet a nd low gearing ratio 
management thoroughly evaluates the impact of all material proj ects and potential acquisitions these transactions are approved by the senior 
leadership team before submission to the board for ultimate approval where applicable  
30 operating lease arrangements 
in thousands of united states dollars 
 
for the year ended 
31 december 
2011 
 
for the year ended 
31 december 
2010 
minimum lease payments under operating leases recognised in income for the period 1736 556 
total  1736 556 
at the balance sheet date the group had outstanding commitments for future minimum lease payments under noncancellable operat ing leases 
which fall due as follows 
in thousands of united states dollars 
 
as at 
31 december 
2011 
 
as at 
31 december 
2010 
within one year  1442 984 
in the second to fifth years inclusive  3701 2459 
after five years  1188 1718 
total  6331 5161 
operating lease payments relate mainly to rental of of fice space by regional business units of the group 
   overview performance governance f inanc ial 
s tatements
shareholder 
information
161
ann ual report and acco unts 2011
notes to the consolidated financial statements continued  
 
29 financial risk management continued 
the following table outlines the expected maturity of the group’ s significant financial liabilities into relevant maturity groupings based on  
the remaining period from the balance sheet date to the contractual maturity date as the amounts disclosed in the table are the contractual 
undiscounted cash flows these balances may not agree with the amounts disclosed in the balance sheet 
for the year ended 31 december 2011  
in thousands of united states dollars 
 
less than 
1 year  
1 to 3 
years  
3 to 5  
years  
over 5 
years  total 
derivative liabilities 58 56 –  – 114
other liabilities 6580 13188 5800  – 25568
trade and other payables
1
 161485 – –  – 161485
total 168123 13244 5800  – 187167
 
for the year ended 31 december 2010  
in thousands of united states dollars 
 
less than 
1 year  
1 to 3 
years  
3 to 5  
years  
over 5 
years  total 
derivative liabilities 1904 1754 –  – 3658
other liabilities 3792 4011 3472  – 11275 
trade and other payables 119652 – –  – 119652
total 125348 5765 3472  – 134585
1 trade and other payables exclude statutory liabilities in the form of income tax payable  
management considers that the group has adequate current assets and forecast cash flow from operations to manage liquidity risks arising from 
settlement of current liabilities and noncurrent liabilities 
capital risk management 
the primary objective of the group’s capital management is to ensure that it maintains a strong balance sheet and low gearing ratio to support its 
business and provides financial flexibility in order to maximise shareholder value in order to ensure a strong balance sheet a nd low gearing ratio 
management thoroughly evaluates the impact of all material proj ects and potential acquisitions these transactions are approved by the senior 
leadership team before submission to the board for ultimate approval where applicable  
30 operating lease arrangements 
in thousands of united states dollars 
 
for the year ended 
31 december 
2011 
 
for the year ended 
31 december 
2010 
minimum lease payments under operating leases recognised in income for the period 1736 556 
total  1736 556 
at the balance sheet date the group had outstanding commitments for future minimum lease payments under noncancellable operat ing leases 
which fall due as follows 
in thousands of united states dollars 
 
as at 
31 december 
2011 
 
as at 
31 december 
2010 
within one year  1442 984 
in the second to fifth years inclusive  3701 2459 
after five years  1188 1718 
total  6331 5161 
operating lease payments relate mainly to rental of of fice space by regional business units of the group 
  
 
 
31 commitments and contingencies 
the group is subject to various laws and regulations which if not observed could give rise to penalties as at 31 december 2011 the group has  
the following commitments andor contingencies 
a legal contingencies 
as at 31 december 2011 the group was a defendant in approximately 212 lawsuits the plaintiffs are claiming damages and intere st thereon for  
the loss caused by the group due to one or more of the follow ing unlawful eviction termination of services wrongful termination of contracts of 
service nonpayment for services defamation negligence by act or omission in failing to provide a safe working environment unpaid overtime  
and public holidays compensation  
the total amounts claimed from lawsuits in which specific moneta ry damages are sought amounted to us47 million the group’s legal counsel  
is defending the group’s current position and the outcome of the lawsuits cannot presently be determined however in the opinion of the 
directors and group’s legal counsel no material liabilities are ex pected to materialise from these lawsuits consequently no provision has been  
set aside against the claims in the books of account 
included in the total amounts claimed of us47 million is a notice received from the tax investigations department informing ab g that the tra 
intend to raise a tax assessment of us213 million in respect of the acquisition of tusker the calculated tax assessment is based on the sales price  
of the nyanzaga property of us71 million multiplied by the tax rate of 30 management is of the opinion that the assessment i s invalid due to the 
fact that the acquisition was for tusker gold limited a company incorporated in aust ralia the share holding of the tanzanian related entities did 
not change and the tusker gold limited group structure remains the same as prior to the acquisition  
also included in the total amounts claimed of us47 million is a claim of us28 million against north mara gold mine being com pensation for 
uncaused improvements disturbance and accommodation allowance rich gold land current value interest and costs management are of the 
opinion that the defence is likely to succeed 
b taxrelated contingencies 
i on 26 october 2009 the tra issued a demand notice against the group for an amount relating to withholding tax on technical services  
provided to bulyanhulu gold mine ltd the claim amounts to us54 million management is of the opinion that the group complied  
with all of the withholding tax requirements and that there will be no amount payable therefore no provision has been raised 
ii the tra has issued a number of tax assessments to the group relating to past taxation years from 2002 onwards the group be lieves that  
these assessments are incorrect and has filed objections to each of them the group is attempting to resolve these matters by m eans of 
discussions with the tra management is of the opinion that this will not result in any material liabilities to the group 
c exploration and development agreement 
pursuant to agreements with the government of the united republ ic of tanzania the group was issued mining licences for bulyanhulu  
buzwagi north mara and tulawaka mines the agreement requires the group to pay to the government of tanzania annual rents of  
us2000 per annum per square kilometre for as long as the group holds the mining licences the total commitment for 2012 based on  
mineral licences held as at 31 december 2011 is us08 million 2011 us03 million 
d purchase commitments 
at 31 december 2011 the group had purchase obligations for supplies and consumables of approximately us31 million 2010 us6 4 million 
e capital commitments 
in addition to entering into various operational commitments in the normal course of business the group entered into the following commitments 
for construction activities for capital projects 
in thousands of united states dollars  
as at 
31 december 
2011 
as at 
31 december 
2010 
contracted capital expenditure  32085 29323 
total  32085 29323 
 
   162
www africanbarrickgoldcom
notes to the consolidated financial statements continued  
 
31 commitments and contingencies continued 
f insurance 
insurance coverage is purchased for certain insurable losses subject to varying deductibles at the group’s mineral properties including losses  
such as property damage and business interruption the group records losses relating to insurable events as they occur proceed s receivable from 
insurance coverage are recorded at such time as receipt is virtually certain and the amount receivable is fixed or determinable  the following table 
sets out the effect of the insurance claims 
in thousands of united states dollars 
 
for the year ended 
31 december 
2011 
 
for the year ended 
31 december 
2010 
cost of sales  – 2100
other income  – 4535
total  – 6635
32 related party balances and transactions 
the group had the following related party balances and transactions during the years ended 31 december 2011 and 31 december 2010  
related parties are those entities owned or controlled by bgc which is the ultimate controlling party of the group 
transactions with related parties are as follows 
a transactions 
in thousands of united states dollars 
 
for the year ended 
31 december 
2011 
 
for the year ended 
31 december 
2010 
bibc – gold sale doré  – 185233
provision of goods and services  507 2443
purchase of goods and services  8426 8864
special dividend payment  – 258680
dividend payments  20924 4852
total  28843 84720
provision and purchase of goods and services tofrom related pa rties are on normal commercial terms and conditions provision of services  
relates to cost incurred by the group and recharged to related pa rties purchase of goods and services relates to cost incurred by related parties  
and recharged to the group services purchased relate mainly to insurance and software licences goods purchased relate mainly to consumables 
and capital equipment 
b balances due from related parties 
in thousands of united states dollars  
as at 
31 december 
2011 
as at 
31 december 
2010 
due from fellow subsidiaries 
placer dome exploration  247 247
placer dome technical services  37 37
barrick platinum pty ltd  – 1696 
other  70 151
total  354 2131 
the receivables are unsecured in nature and bear no interest there are no provisions held against receivables from bgc  
   overview performance governance f inanc ial 
s tatements
shareholder 
information
163
ann ual report and acco unts 2011
notes to the consolidated financial statements continued  
 
31 commitments and contingencies continued 
f insurance 
insurance coverage is purchased for certain insurable losses subject to varying deductibles at the group’s mineral properties including losses  
such as property damage and business interruption the group records losses relating to insurable events as they occur proceed s receivable from 
insurance coverage are recorded at such time as receipt is virtually certain and the amount receivable is fixed or determinable  the following table 
sets out the effect of the insurance claims 
in thousands of united states dollars 
 
for the year ended 
31 december 
2011 
 
for the year ended 
31 december 
2010 
cost of sales  – 2100
other income  – 4535
total  – 6635
32 related party balances and transactions 
the group had the following related party balances and transactions during the years ended 31 december 2011 and 31 december 2010  
related parties are those entities owned or controlled by bgc which is the ultimate controlling party of the group 
transactions with related parties are as follows 
a transactions 
in thousands of united states dollars 
 
for the year ended 
31 december 
2011 
 
for the year ended 
31 december 
2010 
bibc – gold sale doré  – 185233
provision of goods and services  507 2443
purchase of goods and services  8426 8864
special dividend payment  – 258680
dividend payments  20924 4852
total  28843 84720
provision and purchase of goods and services tofrom related pa rties are on normal commercial terms and conditions provision of services  
relates to cost incurred by the group and recharged to related pa rties purchase of goods and services relates to cost incurred by related parties  
and recharged to the group services purchased relate mainly to insurance and software licences goods purchased relate mainly to consumables 
and capital equipment 
b balances due from related parties 
in thousands of united states dollars  
as at 
31 december 
2011 
as at 
31 december 
2010 
due from fellow subsidiaries 
placer dome exploration  247 247
placer dome technical services  37 37
barrick platinum pty ltd  – 1696 
other  70 151
total  354 2131 
the receivables are unsecured in nature and bear no interest there are no provisions held against receivables from bgc  
  
 
 
c balances due to related parties 
in thousands of united states dollars  
as at 
31 december 
2011 
as at 
31 december 
2010 
due to holding company  
barrick gold corporation  3638 2608
due to fellow subsidiaries  
bibc  3 54
barrick gold australia ltd  – 317 
barrick gold north america  203 –
other  146 261
total  3990 3240
the payables to barrick arise mainly from purchase transactions noted above the payables are unsecured and bear no interest  
d remuneration of key management personnel 
key management personnel include the members of the board of di rectors and the senior leadership team who receive remuneration 
compensation for key management personnel including directors was as follows 
in thousands of united states dollars 
 
for the year ended 
31 december 
2011 
 
for the year ended 
31 december 
2010 
shortterm employee benefits  10647 6001
postemployment benefits  1103 486
other longterm benefits  – –
stockbased compensation  2114 728
total  13864 7215
33 prospecting licences 
the group holds exploration mineral rights in the united republic of tanzania these rights are held in the form of prospecting licences issued  
by the ministry of energy and minerals and are held either dire ctly by the group or indirectly pursuant to third party agreemen ts the licences held 
by the group as at 31 december 2011 are summarised in the following table the total commitment to exploration expenditure on t hese licences for 
2012 is us24 million 
mineral licence concessions  
number of 
concessions  
approximate 
km2
held by north mara gold mine limited  10 7284
held by pangea minerals limited  88 206929
held by barrick africa exploration limited   119 156998
held by vulcan resources tanzania  13 19160
held by subsahara resources tz limited  13 11100
held by nyanzaga exploration limited  2 3297
prospecting licences – indirectly held
1
  71 112372
total  316 517140
1 via exploration joint venture with third parties 
   164
www africanbarrickgoldcom
notes to the consolidated financial statements continued  
 
34 business combination 
on 27 april 2010 the company through buk holdco ltd one of its immediate subsidiaries purchased 100 of the issued share capital of  
tusker gold ltd “tusker” by way of a takeover offer for an aggregate net consideration of approximately us74 million tusker is an australian 
based exploration company with a focus on gold tusker was listed on the australian stock exchange but was delisted from the ex change as part  
of the acquisition all of tusker’s assets are located in tanzania and consist of a significant gold resource base and addition al exploration ground 
details of net assets acquired and goodwill are as follows 
in thousands of united states dollars 2010 
purchase consideration 74232
fair value of net assets acquired 52209
goodwill on acquisition 22023
the goodwill arose after the application of ias 12 “income taxes” and is attributable principally to expanding growth opportunities in tanzania  
there has been no change to the provisional fair value during the year 
35 post balance sheet events 
dividend 
a dividend in respect of the year ended 31 december 2011 of us131 cents per share amounting to a final dividend of us163 cen ts per share  
for 2011 is to be proposed at the annual general meeting on 19 april 2012 these financial statemen ts do not reflect this dividend payable 
  overview performance governance f inanc ial 
s tatements
shareholder 
information
165
ann ual report and acco unts 2011
notes to the consolidated financial statements continued  
 
34 business combination 
on 27 april 2010 the company through buk holdco ltd one of its immediate subsidiaries purchased 100 of the issued share capital of  
tusker gold ltd “tusker” by way of a takeover offer for an aggregate net consideration of approximately us74 million tusker is an australian 
based exploration company with a focus on gold tusker was listed on the australian stock exchange but was delisted from the ex change as part  
of the acquisition all of tusker’s assets are located in tanzania and consist of a significant gold resource base and addition al exploration ground 
details of net assets acquired and goodwill are as follows 
in thousands of united states dollars 2010 
purchase consideration 74232
fair value of net assets acquired 52209
goodwill on acquisition 22023
the goodwill arose after the application of ias 12 “income taxes” and is attributable principally to expanding growth opportunities in tanzania  
there has been no change to the provisional fair value during the year 
35 post balance sheet events 
dividend 
a dividend in respect of the year ended 31 december 2011 of us131 cents per share amounting to a final dividend of us163 cen ts per share  
for 2011 is to be proposed at the annual general meeting on 19 april 2012 these financial statemen ts do not reflect this dividend payable 
 
independent auditors’ report to the members of 
african barrick gold plc 
 
we have audited the parent company financial statements of 
african barrick gold plc for the year ended 31 december 2011 which 
comprise the parent company income statement parent company 
statement of comprehensive income parent company balance sheet 
parent company statement of changes in equity parent company 
cash flow statement and the related notes the financial reporting 
framework that has been applied in their preparation is applicable law 
and international financial reporting standards ifrss as adopted  
by the european union  
respective responsibilities of directors and auditors  
as explained more fully in the directors’ responsibilities statement  
set out on page 99 the directors are responsible for the preparation  
of the parent company financial statements and for being satisfied  
that they give a true and fair view our responsibility is to audit and 
express an opinion on the parent company financial statements in 
accordance with applicable law and international standards on 
auditing uk and ireland those standards require us to comply  
with the auditing practices board’s ethical standards for auditors  
this report including the opinions has been prepared for and only  
for the company’s members as a body in accordance with chapter 3  
of part 16 of the companies act 2006 and for no other purpose  
we do not in giving these opinions accept or assume responsibility  
for any other purpose or to any other person to whom this report is 
shown or into whose hands it may come save where expressly agreed  
by our prior consent in writing 
scope of the audit of the financial statements  
an audit involves obtaining evidence about the amounts and  
disclosures in the financial statements sufficient to give reasonable 
assurance that the financial statements are free from material 
misstatement whether caused by fraud or error this includes an 
assessment of whether the accounting policies are appropriate to the 
parent company’s circumstances and have been consistently applied  
and adequately disclosed the reasonableness of significant accounting 
estimates made by the directors and the overall presentation of  
the financial statements in addition we read all the financial and  
nonfinancial information in the annual report to identify material 
inconsistencies with the audited financial statements if we become 
aware of any apparent material misstatements or inconsistencies we 
consider the implications for our report 
opinion on financial statements  
in our opinion the parent company financial statements  
• give a true and fair view of the state of the company’s affairs as  
at 31 december 2011 and of its loss and cash flows for the year  
then ended  
• have been properly prepared in accordance with ifrss as adopted  
by the european union and  
• have been prepared in accordance with the requirements of the 
companies act 2006  
opinion on other matters prescribed by the companies  
act 2006  
in our opinion  
• the part of the remuneration report to be audited has been properly 
prepared in accordance with the companies act 2006 and 
• the information given in the directors’ report for the financial year 
for which the parent company financial statements are prepared  
is consistent with the parent company financial statements 
matters on which we are required to report by exception  
we have nothing to report in respect of the following matters where  
the companies act 2006 requires us to report to you if in our opinion  
• adequate accounting records have not been kept by the parent 
company or returns adequate for our audit have not been received 
from branches not visited by us or  
• the parent company financial statements and the part of the 
remuneration report to be audited are not in agreement with  
the accounting records and returns or  
• certain disclosures of directors’ remuneration specified by law  
are not made or  
• we have not received all the information and explanations we  
require for our audit 
other matter  
we have reported separately on the group financial statements of 
african barrick gold plc for the year ended 31 december 2011  
 
jason burkitt 
senior statutory auditor 
for and on behalf of pricewaterhousecoopers llp 
chartered accountants and statutory auditors 
london 
7 march 2012 
notes 
a the maintenance and integrity of the african barrick gold plc website is the 
responsibility of the directors the work carried out by the auditors does not involve 
consideration of these matters and accordingly the auditors accept no responsibility for 
any changes that may have occurred to the financial statements since they were initially 
presented on the website 
b legislation in the united kingdom governing the preparation and dissemination  
of financial statements may differ from legislation in other jurisdictions 
  166
www africanbarrickgoldcom
parent company income statement 
 
 
in thousands of united states dollars 
 
notes  
for the 
year ended 
31 december 
2011 
for the 
period since 
incorporation ended 
31 december 
2010 
corporate administration 3  18996 5888
other incomecharges    177 2294
finance income  4  193 338
loss before taxation    18626 7844
income tax 5  – –
net loss for the period    18626 7844
parent company statement of comprehensive income 
in thousands of united states dollars  
for the 
year ended 
31 december 
2011 
for the 
period since 
incorporation ended 
31 december 
2010 
net loss for the period  18626 7844
other comprehensive income for the period  – –
total comprehensive loss for the period  18626 7844
the notes on pages 170 to 180 are an integral part of these financial statements 
  overview performance governance f inanc ial 
s tatements
shareholder 
information
167
ann ual report and acco unts 2011
parent company income statement 
 
 
in thousands of united states dollars 
 
notes  
for the 
year ended 
31 december 
2011 
for the 
period since 
incorporation ended 
31 december 
2010 
corporate administration 3  18996 5888
other incomecharges    177 2294
finance income  4  193 338
loss before taxation    18626 7844
income tax 5  – –
net loss for the period    18626 7844
parent company statement of comprehensive income 
in thousands of united states dollars  
for the 
year ended 
31 december 
2011 
for the 
period since 
incorporation ended 
31 december 
2010 
net loss for the period  18626 7844
other comprehensive income for the period  – –
total comprehensive loss for the period  18626 7844
the notes on pages 170 to 180 are an integral part of these financial statements 
 
parent company balance sheet 
 
 
in thousands of united states dollars  notes  
as at 
31 december 
2011 
as at 
31 december 
2010 
assets    
noncurrent assets    
property plant and equipment   7  370 425
investment in subsidiaries  8  1324568 1324568
noncurrent receivables  18  772680 772680
      2097618 2097673
current assets    
other receivables   9  663 1024
cash and cash equivalents  10  145870 187491
     146533 188515
total assets     2244151 2286188
 
equity and liabilities    
share capital and share premium  11  929199 929199
other reserves    1309391 1355008
total equity     2238590 2284207
    
noncurrent liabilities    
other noncurrent liabilities    1197 327
      1197 327
 
current liabilities    
other current liabilities   14  4364 1654
      4364 1654
total liabilities     5561 1981
total equity and liabilities     2244151 2286188
the notes on pages 170 to 180 are an integral part of these financial statements  
the financial statements on pages 166 to 180 were authorised for issue by the board of directors on 7 march 2012 and were signe d on its behalf 
 
greg hawkins 
chief executive officer 
  168
www africanbarrickgoldcom
parent company statement of changes in equity 
 
  
in thousands of united states dollars  notes  share capital  share premium  
contributed 
surplusother 
reserves  stock option reserve  r etained earnings   total equity 
balance at 12 january 2010    – – – –  – –
issuance of shares to bgc  11  1991 1989138 1991129 –  – –
capital reduction  11  – 1989138 1989138 –  – –
bonus issue to bgc  11  43805 – 43805 –  – –
net loss for the period    – – – –  7844 7844
special dividends    – – 258680 –  – 258680
conversion to contributed surplus    – – 1673250 –  – 1673250
share issuance  11  16301 921035 – –  – 937336
transaction costs   11  – 53933 – –  – 53933
interim dividend    – – – –  6562 6562
stock options     – – – 640  – 640
balance at 31 december 2010    62097 867102 1368774 640  14406 2284207
net loss for the period    – – – –  18626 18626
dividends to shareholders  13  – – – –  28328 28328
stock options     – – – 1337  – 1337
balance at 31 december 2011    62097 867102 1368774 1977  61360 2238590
the notes on pages 170 to 180 are an integral part of these financial statements  
  overview performance governance f inanc ial 
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shareholder 
information
169
ann ual report and acco unts 2011
parent company statement of changes in equity 
 
  
in thousands of united states dollars  notes  share capital  share premium  
contributed 
surplusother 
reserves  stock option reserve  retained earnings   total equity 
balance at 12 january 2010    – – – –  – –
issuance of shares to bgc  11  1991 1989138 1991129 –  – –
capital reduction  11  – 1989138 1989138 –  – –
bonus issue to bgc  11  43805 – 43805 –  – –
net loss for the period    – – – –  7844 7844
special dividends    – – 258680 –  – 258680
conversion to contributed surplus    – – 1673250 –  – 1673250
share issuance  11  16301 921035 – –  – 937336
transaction costs   11  – 53933 – –  – 53933
interim dividend    – – – –  6562 6562
stock options     – – – 640  – 640
balance at 31 december 2010    62097 867102 1368774 640  14406 2284207
net loss for the period    – – – –  18626 18626
dividends to shareholders  13  – – – –  28328 28328
stock options     – – – 1337  – 1337
balance at 31 december 2011    62097 867102 1368774 1977  61360 2238590
the notes on pages 170 to 180 are an integral part of these financial statements  
 
parent company cash flow statement 
 
 
in thousands of united states dollars  notes  
for the 
year ended 
31 december 
2011  
for the 
period since 
incorporation ended 
31 december 
2010 
cash flows from operating activities    
net loss for the period    18626 7844
adjustments for    
depreciation and amortisation  7  134 41
finance items  4  193 338
working capital adjustments   6  3941 957
other   6  1248 694
cash used by operations before interest and tax    13496 6490
finance income     193 338
net cash used by operating activities     13303 6152
 
cash flows from investing activities    
purchase of property plant and equipment   7  79 466
net cash used in investing activities     79 466
    
cash flows from financing activities    
related party debt funding     – 772680
share issuance – ipo net of transaction costs    – 865366
increase in contributed surplus    – 361031
special dividend    – 252981
dividends paid  13  28328 6562
net cash used ingenerated by financing activities     28328 194174
    
net decreaseincrease in cash and equivalents     41710 187556
net foreign exchange difference    89 65
cash and cash equivalents at 12 january    187491 –
cash and cash equivalents at 31 december     145870 187491
the notes on pages 170 to 180 are an integral part of these financial statements  
  170
www africanbarrickgoldcom
notes to the company financial statements 
 
1 corporate information 
african barrick gold plc the “company” was incorporated on 12 january 2010 and reregistered as a public limited company on 1 2 march 2010 
under the companies act 2006 it is registered in england and wales with registered number 7123187 
on 24 march 2010 the company’s shares were admitted to the official list of the united kingdom listing authority “ukla” and t o trading on 
the main market of the london stock exchange hereafter referred to as the initial public offering “ipo” the address of its registered office is  
6 st james’s place london sw1a 1np united kingdom 
barrick gold corporation “bgc” currently owns approximately 739 of the shares of the company and is the ultimate controlling party of  
the group 
the financial statements for the year ended 31 december 2011 were approved for issue by the board of directors of the company o n 7 march 2012  
the primary activity of the company is as holding comp any for the african barrick gold group of companies 
2 significant accounting policies 
the principal accounting policies applied in the preparation of these financial statements are set out below  
a basis of preparation 
the company’s financial statements have been prepared in accordance with international financial reporting standards as adopted by the 
european union ifrss ifric interpretations and those parts of the companies act 2006 applicable to companies reporting under ifrs 
the financial statements of the company have been prepared on a historical cost basis  
the companys forecasts and projections taking account of reasonably possible changes in trading performance show that the co mpany should  
be able to operate within the level of its current financing 
after making enquiries the directors have a reasonable expectation that the company has adequate resources to continue in oper ational existence 
for the foreseeable future the company therefore adopts the going concern basis in preparing its financial statements 
the financial statements are presented in us dollars us and all values are rounded to the nearest thousand us’000 except when otherwise indicated  
the basis of preparation and accounting policies used in preparing the financial statements are set out below 
b new and amended standards adopted by the company 
there are no new ifrss or ifric interpretations that are effective for the first time for the financial year beginning on or after 1 january 2011 that 
would be expected to have a material impact on the company 
c new and amended standards and interpretations mandatory for the first time for the financial year beginning 1 january 2011 but not 
currently relevant to the company although they may affect the accounting for future transactions and events  
the following standards and amendments to existing standards have been published and are mandatory for the company’s accounting periods 
beginning on or after 1 january 2011 or later period s but are currently not relevant to the company 
• amendment to ias 32 “financial instruments presentation – classi fication of rights issues” the standard was amended to allow rights  
options or warrants to acquire a fixed number of the entity’s own equity instruments for a fixed amount of any currency to be c lassified  
as equity instruments provided the entity offers the rights options or warrants pro rata to all of its existing owners of the same class of its  
own nonderivative equity instruments 
• ifric 19 “extinguishing financial liabilities with equity instruments” this interpretation clarifies the requirements of ifrs s when an entity 
renegotiates the terms of a financial liability with its creditor and the creditor agrees to accept the entity’s shares or other equity instruments  
to settle the financial liability fully or partially 
• amendment to ifrs 1 “firsttime adoption of ifrs – limited exemption from comparative ifrs 7 disclosures for firsttime adopters”  
provides the same relief to firsttime adopters as was given to current users of ifrss upon adoption of the amendments to ifrs 7  
also clarifies the transition provisions of the amendments to ifrs 7 
• ias 24 “related party disclosures” revised 2009 amends the definition of a related party and modifies certain relatedparty disclosure 
requirements for governmentrelated entities 
• amendment to ifric 14 “ias 19 – the limit on defined benefit assets minimum funding requirements and their interaction” the amendment 
removes unintended consequences arising from the treatment of prepayments where there is a minimum funding requirement results in  
prepayments of contributions in certain circumstances being recognised as an asset rather than an expense  overview performance governance f inanc ial 
s tatements
shareholder 
information
171
ann ual report and acco unts 2011
notes to the company financial statements 
 
1 corporate information 
african barrick gold plc the “company” was incorporated on 12 january 2010 and reregistered as a public limited company on 1 2 march 2010 
under the companies act 2006 it is registered in england and wales with registered number 7123187 
on 24 march 2010 the company’s shares were admitted to the official list of the united kingdom listing authority “ukla” and t o trading on 
the main market of the london stock exchange hereafter referred to as the initial public offering “ipo” the address of its registered office is  
6 st james’s place london sw1a 1np united kingdom 
barrick gold corporation “bgc” currently owns approximately 739 of the shares of the company and is the ultimate controlling party of  
the group 
the financial statements for the year ended 31 december 2011 were approved for issue by the board of directors of the company o n 7 march 2012  
the primary activity of the company is as holding comp any for the african barrick gold group of companies 
2 significant accounting policies 
the principal accounting policies applied in the preparation of these financial statements are set out below  
a basis of preparation 
the company’s financial statements have been prepared in accordance with international financial reporting standards as adopted by the 
european union ifrss ifric interpretations and those parts of the companies act 2006 applicable to companies reporting under ifrs 
the financial statements of the company have been prepared on a historical cost basis  
the companys forecasts and projections taking account of reasonably possible changes in trading performance show that the co mpany should  
be able to operate within the level of its current financing 
after making enquiries the directors have a reasonable expectation that the company has adequate resources to continue in oper ational existence 
for the foreseeable future the company therefore adopts the going concern basis in preparing its financial statements 
the financial statements are presented in us dollars us and all values are rounded to the nearest thousand us’000 except when otherwise indicated  
the basis of preparation and accounting policies used in preparing the financial statements are set out below 
b new and amended standards adopted by the company 
there are no new ifrss or ifric interpretations that are effective for the first time for the financial year beginning on or after 1 january 2011 that 
would be expected to have a material impact on the company 
c new and amended standards and interpretations mandatory for the first time for the financial year beginning 1 january 2011 but not 
currently relevant to the company although they may affect the accounting for future transactions and events  
the following standards and amendments to existing standards have been published and are mandatory for the company’s accounting periods 
beginning on or after 1 january 2011 or later period s but are currently not relevant to the company 
• amendment to ias 32 “financial instruments presentation – classi fication of rights issues” the standard was amended to allow rights  
options or warrants to acquire a fixed number of the entity’s own equity instruments for a fixed amount of any currency to be c lassified  
as equity instruments provided the entity offers the rights options or warrants pro rata to all of its existing owners of the same class of its  
own nonderivative equity instruments 
• ifric 19 “extinguishing financial liabilities with equity instruments” this interpretation clarifies the requirements of ifrs s when an entity 
renegotiates the terms of a financial liability with its creditor and the creditor agrees to accept the entity’s shares or other equity instruments  
to settle the financial liability fully or partially 
• amendment to ifrs 1 “firsttime adoption of ifrs – limited exemption from comparative ifrs 7 disclosures for firsttime adopters”  
provides the same relief to firsttime adopters as was given to current users of ifrss upon adoption of the amendments to ifrs 7  
also clarifies the transition provisions of the amendments to ifrs 7 
• ias 24 “related party disclosures” revised 2009 amends the definition of a related party and modifies certain relatedparty disclosure 
requirements for governmentrelated entities 
• amendment to ifric 14 “ias 19 – the limit on defined benefit assets minimum funding requirements and their interaction” the amendment 
removes unintended consequences arising from the treatment of prepayments where there is a minimum funding requirement results in  
prepayments of contributions in certain circumstances being recognised as an asset rather than an expense 
 
 
d new standards amendments and interpretations issued but not effective for the financial year beginning 1 january 2011 and not  
early adopted 
the company’s assessment of the impact of these new standards and interpretations is set out below 
• ifric 20 “stripping costs in the production phase of a surface mine” this interpretation addr esses the following issues recognition of 
production stripping costs as an asset initial measurement of the stripping activity asset and subsequent measurement of the stripping activity 
asset this interpretation considers when and how to account fo r the benefit arising from the stripping activity as well as how to measure these 
benefits both initially and subsequently the interpretation is effective from 1 january 2013 the group is yet to assess the full impact of ifric 20 
• amendments to ifrs 7 “financial instrument s disclosures” on derecognition this am endment will promote transparency in the reporting of 
transfer transactions and improve users’ understanding of the risk exposures relating to transfers of financial assets and the effect of those risks on an 
entity’s financial position particularly those involving securiti sation of financial assets the standard is not applicable un til 1 july 2011 but is available 
for early adoption subject to eu endorsement it is not expected to have a material impact on the group’s or parent entity’s fi nancial statements 
• amendment to ifrs 1 “first time adoption” on fixed dates and hyperinflation these amendments include two changes to ifrs 1 “firsttime 
adoption of ifrs” the first replaces references to a fixed date of 1 january 2004 with “the date of transition to ifrss” thus eliminating the need 
for entities adopting ifrss for the first time to restate dereco gnition transactions that occurred before the date of transition to ifrss the second 
amendment provides guidance on how an entity should resume presen ting financial statements in accordance with ifrss after a period when the 
entity was unable to comply with ifrss because its functional currency was subject to severe hyperinflation the amendment is a pplicable from  
1 july 2011 but is not expected to have any impact on the group’s or the parent entity’s financial statements 
• amendment to ias 12 “income taxes” on deferred tax ias 12 “income taxes” currently requires an entity to measure the deferred tax relating 
to an asset depending on whether the entity expects to recover the carrying amount of the asset through use or sale it can be difficult and 
subjective to assess whether recovery will be through use or through sale when the asset is me asured using the fair value model in ias 40 
“investment property” this amendment therefore introduces an exception to the existing principle for the measurement of deferr ed tax assets  
or liabilities arising on investment property measured at fair value as a result of the amendments sic 21 “income taxes – recovery of revalued 
nondepreciable assets” will no longer apply to investment properties carried at fair value the amendments also incorporate into ias 12 the 
remaining guidance previously contained in sic 21 which is withdrawn the amendment is effective from 1 january 2012 but is not expected  
to have any impact on the group’s or the parent entity’s financial statements 
• amendment to ias 1 “financial statement presentation” regarding other comprehensive income the main change resulting from the se 
amendments is a requirement for entities to group items presented in “other comprehensive income” oci on the basis of whether they are 
potentially reclassifiable to profit or lo ss subsequently reclassification adjustments the amendments do not address which i tems are presented in 
oci the amendment is effective from 1 july 2012 it is not expected to have a material impact on the group’s or parent entity’s financial statements 
• amendment to ias 19 “employee benefits” these amendments elimin ate the corridor approach and ca lculate finance costs on a net funding basis 
the amendment is effective from 1 january 2013 it is not expected to have a material impact on the group’s or parent entity’s financial statements 
• ifrs 9 “financial instruments” ifrs 9 is the first standard i ssued as part of a wider project to replace ias 39 ifrs 9 retai ns but simplifies the 
mixed measurement model and establishes two primary measurement categories for financial assets amortised cost and fair value the basis of 
classification depends on the entity’s business model and the contractual cash flow characteristics of the financial asset the guidance in ias 39  
on impairment of financial assets and hedge accounting continues to apply the standard is effective from 1 january 2013 the g roup is yet  
to assess ifrs 9’s full impact however initial indications are that the adoption of ifrs 9 will not have a significant impact on the group’s 
operating results or financial position 
• ifrs 10 “consolidated financial statements” the objective of if rs 10 is to establish principles for the presentation and preparation of 
consolidated financial statements when an entity controls one or more other entities an entity that controls one or more other entities to  
present consolidated financial statements defines the principle of control and establishes controls as the basis for consolid ation sets out how  
to apply the principle of control to identify whether an investor controls an investee and therefore must consolidate the investee and sets out the 
accounting requirements for the preparation of consolidated financial statements the standard is effective from 1 january 2013 the standard 
will be applicable to the group but is not expected to have a material impact on the group’s or parent entity’s financial state ments 
• ifrs 11 “joint arrangements” ifrs 11 is a more realistic reflection of joint arrangements focusing on the rights and obligati ons of the 
arrangement rather than its legal form there are two types of joint arrangement joint operations and joint ventures joint operations arise  
where a joint operator has rights to the assets and obligations relating to the arrangement and hence accounts for its interest in assets liabilities 
revenue and expenses joint ventures arise where the joint operator has rights to the net assets of the arrangement and hence equity accounts for 
its interest proportional consolidation of joint ventures is no longer allowed the standard is effective from 1 january 2013 it is not expected to 
have a material impact on the group’s or parent entity’s financial statements 
• ifrs 12 “disclosures of interests in other entities” ifrs 12 includes the disclosure requirements for all forms of interests in other entities 
including joint arrangements associates special purpose vehicles and other off balance sheet vehicles the amendment is effec tive from  
1 january 2013 it is not expected to have a material impact on the group’s or parent entity’s financial statements 
   172
www africanbarrickgoldcom
notes to the company financial statements continued 
 
2 significant accounting policies continued 
• ifrs 13 “fair value measurement” ifrs 13 aims to improve consistency and reduce complexity by providing a precise definition of fair value 
and a single source of fair value measurement and disclosure requirements for use across ifrss the requirements which are largely aligned 
between ifrss and us gaap do not extend the use of fair value accounting but provide guidance on how it sh ould be applied where its use is 
already required or permitted by other standards within ifrss or us gaap the amendment is effective from 1 january 2013 the g roup is  
yet to assess ifrs 9’s full impact however initial indications ar e that the adoption of ifrs 9 will not have a significant impact on the group’s 
operating results or financial position 
• ias 27 revised 2011 “separate financial statements” ias 27 revised 2011 includes the provisions on separate financial sta tements that are left 
after the control provisions of ias 27 have been included in the new ifrs 10 the am endment is effective from 1 january 2013 but is not expected 
to have any impact on the group’s or the parent entity’s financial statements 
• ias 28 revised 2011 “associates and joint ventures” ias 28 revised 2011 includes the requirements for joint ventures as well as associates  
to be equity accounted following the issue of ifrs 11 the amendment is effective from 1 january 2013 it is not expected to ha ve a material 
impact on the group’s or parent entity’s financial statements  
e significant judgements in applying accounting policies and key sources of estimation uncertainty 
many of the amounts included in the parent company 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 but actual results may differ from the amounts included in the parent company financial statements information about such 
judgements and estimation is included in the accounting policies andor notes to the financial statements and the key areas are summarised below 
areas of judgement and key sources of estimation uncertainty that have the most significant effect on the amounts recognised in the parent 
company financial statements include 
• whether to recognise a provision for accounts receivable – notes 2i and 9  
• recognition of deferred income tax assets amounts recorded for uncertain tax positions the measurement of income tax expense and indirect 
taxes – notes 2k and 5 and 
• review of property plant and equipment and investments in subsidiaries the determination of whether these assets are impaired and the 
measurement of impairment charges or reversals – note 2g 7 and 8 
f foreign currency translation 
the company’s transactions are denominated in a number of different currencies primarily us dollars and uk pounds sterling t he company 
has liabilities that are primarily denominated in us dollars the us dollar is the company’s functional currency as well as th e company’s 
presentation currency transactions in currencies other than the us dollar are translated at the exchange rates as at the date of transaction 
monetary assets and liabilities denominated in currencies other than the us dollar are translated to us dollars at yearend exc hange rates  
all differences that arise are recorded in the income statement nonmonetary assets measured at historical cost in a currency other than  
us dollars are translated using the exchange rates at the date of the initial transactions where nonmonetary assets are measured at fair value  
in a currency other than us dollars they are translated into us dollars using the exchange rates on the date when the fair value was determined  
the following exchange rates to the us dollar have been applied 
 
as at 
31 december 
2011 
average  
year ended  
31 december  
2011  
as at 
31 december 
2010  
average 
year ended 
31 december 
2010 
uk pound us  gbp 064 062  065 065
g investment in subsidiaries 
subsidiaries are entities over which the company has the power directly or indirectly to govern the financial and operating p olicies in order to 
obtain benefits from their activities control is presumed to ex ist where the company has more than one half of the voting rights unless it can be 
demonstrated that ownership does not constitute control control does not exist where other parties hold veto rights over signi ficant operating  
and financial decisions in assessing control potential voting rights that are currently exercisable or convertible as well as other contractual 
arrangements that enable the company to exercise control are taken into account 
at each reporting date an assessment is made to determine whether there are any indicators of impairment where an indicator o f impairment 
exists a formal estimate of the recoverable amount of the invest ment in subsidiary is made which is considered to be the high er of the fair value less 
costs to sell and the value in use fair value is determined as th e amount that would be obtained from the sale of the investment in an arm’s length 
transaction between knowledgeable and willing parties if the carrying amount of an investment exceeds the recoverable amount a provision is 
recorded in the income statement to reflect the investment at the recoverable amount 
   overview performance governance f inanc ial 
s tatements
shareholder 
information
173
ann ual report and acco unts 2011
notes to the company financial statements continued 
 
2 significant accounting policies continued 
• ifrs 13 “fair value measurement” ifrs 13 aims to improve consistency and reduce complexity by providing a precise definition of fair value 
and a single source of fair value measurement and disclosure requirements for use across ifrss the requirements which are largely aligned 
between ifrss and us gaap do not extend the use of fair value accounting but provide guidance on how it sh ould be applied where its use is 
already required or permitted by other standards within ifrss or us gaap the amendment is effective from 1 january 2013 the g roup is  
yet to assess ifrs 9’s full impact however initial indications ar e that the adoption of ifrs 9 will not have a significant impact on the group’s 
operating results or financial position 
• ias 27 revised 2011 “separate financial statements” ias 27 revised 2011 includes the provisions on separate financial sta tements that are left 
after the control provisions of ias 27 have been included in the new ifrs 10 the am endment is effective from 1 january 2013 but is not expected 
to have any impact on the group’s or the parent entity’s financial statements 
• ias 28 revised 2011 “associates and joint ventures” ias 28 revised 2011 includes the requirements for joint ventures as well as associates  
to be equity accounted following the issue of ifrs 11 the amendment is effective from 1 january 2013 it is not expected to ha ve a material 
impact on the group’s or parent entity’s financial statements  
e significant judgements in applying accounting policies and key sources of estimation uncertainty 
many of the amounts included in the parent company 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 but actual results may differ from the amounts included in the parent company financial statements information about such 
judgements and estimation is included in the accounting policies andor notes to the financial statements and the key areas are summarised below 
areas of judgement and key sources of estimation uncertainty that have the most significant effect on the amounts recognised in the parent 
company financial statements include 
• whether to recognise a provision for accounts receivable – notes 2i and 9  
• recognition of deferred income tax assets amounts recorded for uncertain tax positions the measurement of income tax expense and indirect 
taxes – notes 2k and 5 and 
• review of property plant and equipment and investments in subsidiaries the determination of whether these assets are impaired and the 
measurement of impairment charges or reversals – note 2g 7 and 8 
f foreign currency translation 
the company’s transactions are denominated in a number of different currencies primarily us dollars and uk pounds sterling t he company 
has liabilities that are primarily denominated in us dollars the us dollar is the company’s functional currency as well as th e company’s 
presentation currency transactions in currencies other than the us dollar are translated at the exchange rates as at the date of transaction 
monetary assets and liabilities denominated in currencies other than the us dollar are translated to us dollars at yearend exc hange rates  
all differences that arise are recorded in the income statement nonmonetary assets measured at historical cost in a currency other than  
us dollars are translated using the exchange rates at the date of the initial transactions where nonmonetary assets are measured at fair value  
in a currency other than us dollars they are translated into us dollars using the exchange rates on the date when the fair value was determined  
the following exchange rates to the us dollar have been applied 
 
as at 
31 december 
2011 
average  
year ended  
31 december  
2011  
as at 
31 december 
2010  
average 
year ended 
31 december 
2010 
uk pound us  gbp 064 062  065 065
g investment in subsidiaries 
subsidiaries are entities over which the company has the power directly or indirectly to govern the financial and operating p olicies in order to 
obtain benefits from their activities control is presumed to ex ist where the company has more than one half of the voting rights unless it can be 
demonstrated that ownership does not constitute control control does not exist where other parties hold veto rights over signi ficant operating  
and financial decisions in assessing control potential voting rights that are currently exercisable or convertible as well as other contractual 
arrangements that enable the company to exercise control are taken into account 
at each reporting date an assessment is made to determine whether there are any indicators of impairment where an indicator o f impairment 
exists a formal estimate of the recoverable amount of the invest ment in subsidiary is made which is considered to be the high er of the fair value less 
costs to sell and the value in use fair value is determined as th e amount that would be obtained from the sale of the investment in an arm’s length 
transaction between knowledgeable and willing parties if the carrying amount of an investment exceeds the recoverable amount a provision is 
recorded in the income statement to reflect the investment at the recoverable amount 
  
 
 
where an impairment charge has previously been recognised an assessment is made at the end of each reporting period whether there is any 
indication that the impairment loss may no longer exist or may have decreased if any such indication exists an estimate of th e recoverable amount 
is made an impairment loss is reversed to the income statemen t to the extent that the increased carrying value of the investme nt in subsidiary does 
not exceed the original carrying value 
h share capital 
ordinary shares are classified as equity incremental costs directly attributable to the issue of new shares or options are shown in equity as a 
deduction from the proceeds 
i financial instruments 
cash and cash equivalents 
cash and cash equivalents are carried in the balance sheet at fair value for the purposes of the balance sheet cash and cash equivalents include cash  
and money market funds for the purposes of the cash flow statemen t cash and cash equivalents consist of cash and cash equival ents as defined above 
loans and receivables 
loans and receivables are nonderivative financial assets with fixed or determinable payments that are not quoted in an active market do not qualify 
as trading assets and have not been designated as either fair value through profit and loss or available for sale these are initially recognised at fair 
value and are subsequently stated at amortised cost using the effective interest method they ar e included in current assets except for maturities 
greater than 12 months after the balance sheet date which are classified as noncurrent assets 
loans and receivables comprise other receivables and cash and cash equivalents at the balance sheet date  
a provision for impairment of trade receivables is established wh en there is objective evidence that the company will not be ab le to collect all 
amounts due according to the original terms of receivables the carrying amount of the asset is reduced through use of an allowance account  
the amount of the provision is recognised in the income statement 
financial liabilities 
other payables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method  
j finance income and finance expense 
interest income is recognised on a timeproportion basis using the effective interest method when a receivable is impaired the company  
reduces the carrying amount to its recoverable amount being the es timated future cash flow discounted at the original effective interest rate  
of the instrument and continues unwinding the discount as interest income 
k taxes 
the tax expense for the period comprises current and deferred tax tax is recognised in the income statement except to the extent that it relates  
to items recognised in other comprehensive income or directly in equity in this case the tax is also recognised in other comprehensive income  
or directly in equity respectively 
current income tax 
current income tax assets and liabilities for the current period are measured at the amount expected to be recovered from or pa id to the taxation 
authorities management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject 
to interpretation it establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities the tax rates and  
tax laws used to compute the amount are those that are en acted or substantively enacted by the balance sheet date 
deferred income tax 
unrecognised deferred income tax assets are reassessed at each balance sheet date and are recognised to the extent that it has become probable that 
future taxable profit will allow the deferred tax asset to be recovered 
indirect tax 
indirect tax assets and liabilities for the current and prior pe riods are measured at the amount expected to be recovered from or paid to the taxation 
authorities management periodically evaluates positions taken in indirect tax returns with respect to situations in which appl icable tax regulation  
is subject to interpretation it establishes provisions or receivables where appropriate on the basis of amounts expected to be paid to or received  
from the tax authorities the tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted by the balance 
sheet date if the receivable is expected to be received in more than 12 months from yearend the receivable is discounted and held at its present 
value amounts expected to be payable or receivable in more than 12 months are classified as no ncurrent assets or liabilities in the balance sheet  
as appropriate 
   174
www africanbarrickgoldcom
notes to the company financial statements continued 
 
2 significant accounting policies continued 
l dividend distribution 
dividend distribution to the company’s shareholders is recognised as a liability in the company’s financial statements in the period in which the 
dividends are approved by the company’s shareholders 
3 corporate administration 
included in corporate administration costs are the following 
in thousands of united states dollars  
for the 
year ended 
31 december 
2011 
for the 
period since 
incorporation ended 
31 december 
2010 
salaries  3941 2257
other employee benefits  1767 256
stockbased compensation  2739 544
directors’ fees  580 455
professional and consultancy fees  4298 913
foreign exchange lossgain  103 85
travel and administration  4248 699
depreciation  134 41
audit fees
1
  464 384
other  928 254
   18996 5888
1 audit fees relating to the audit of the company for the years ended 31 december 2 011 and 2010 amounted to us50 thousand the difference relates to audit fees incurred for the audit of 
other group companies  
details of directors’ remuneration can be found in the remunera tion report on pages 100 to 111 details of the auditors’ remuneration can be 
found in note 9 of the group financial statements 
average number of employees 
  
for the 
year ended 
31 december 
2011 
for the 
period since 
incorporation ended 
31 december 
2010 
administration  6 5
total average headcount  6 5
4  finance income 
in thousands of united states dollars  
for the 
year ended 
31 december 
2011 
for the 
period since 
incorporation ended 
31 december 
2010 
interest on time deposits  193 338
total  193 338
5 income tax 
in thousands of united states dollars  
for the 
year ended 
31 december 
2011 
for the 
period since 
incorporation ended 
31 december 
2010 
corporation taxes  – –
total   – –
   overview performance governance f inanc ial 
s tatements
shareholder 
information
175
ann ual report and acco unts 2011
notes to the company financial statements continued 
 
2 significant accounting policies continued 
l dividend distribution 
dividend distribution to the company’s shareholders is recognised as a liability in the company’s financial statements in the period in which the 
dividends are approved by the company’s shareholders 
3 corporate administration 
included in corporate administration costs are the following 
in thousands of united states dollars  
for the 
year ended 
31 december 
2011 
for the 
period since 
incorporation ended 
31 december 
2010 
salaries  3941 2257
other employee benefits  1767 256
stockbased compensation  2739 544
directors’ fees  580 455
professional and consultancy fees  4298 913
foreign exchange lossgain  103 85
travel and administration  4248 699
depreciation  134 41
audit fees
1
  464 384
other  928 254
   18996 5888
1 audit fees relating to the audit of the company for the years ended 31 december 2 011 and 2010 amounted to us50 thousand the difference relates to audit fees incurred for the audit of 
other group companies  
details of directors’ remuneration can be found in the remunera tion report on pages 100 to 111 details of the auditors’ remuneration can be 
found in note 9 of the group financial statements 
average number of employees 
  
for the 
year ended 
31 december 
2011 
for the 
period since 
incorporation ended 
31 december 
2010 
administration  6 5
total average headcount  6 5
4  finance income 
in thousands of united states dollars  
for the 
year ended 
31 december 
2011 
for the 
period since 
incorporation ended 
31 december 
2010 
interest on time deposits  193 338
total  193 338
5 income tax 
in thousands of united states dollars  
for the 
year ended 
31 december 
2011 
for the 
period since 
incorporation ended 
31 december 
2010 
corporation taxes  – –
total   – –
  
 
 
the statutory income tax rate in the united kingdom is 28 for 2011 the tax on the company’s profit before tax differs from the theoretical 
amount that would arise using the statutory tax rate as follows 
in thousands of united states dollars  
for the 
year ended 
31 december 
2011 
for the 
period since 
incorporation ended 
31 december 
2010 
loss before tax  18626 7844
tax calculated at statutory tax rates   5215 2196
tax effects of  
expenses not deductible for tax purposes  – 561
tax losses for which no deferred income tax asset was recognised 5215 1635
tax charge  – –
deferred tax assets have not been recognised in respect of the tax losses amounting to us23 million as at 31 december 2011 20 10 us61 million 
as there is not sufficient certainty over future profits 
6 cash flow – other items 
a operating cash flows – other items 
in thousands of united states dollars  
for the 
year ended 
31 december 
2011 
for the 
period since 
incorporation ended 
31 december 
2010 
adjustments for noncash income statement items   
foreign exchange lossesgains  192 150
exchange loss on revaluation of cash balances  89 –
other expenses  1351 544
total  1248 694
adjustments for working capital items  
in thousands of united states dollars  
for the 
year ended 
31 december 
2011 
for the 
period since 
incorporation ended 
31 december 
2010 
other receivables  361 1024
other current liabilities  2710 1654
other noncurrent liabilities  870 327
total  3941 957
7  property plant and equipment 
for the year ended 31 december 2011 
in thousands of united states dollars  
 furniture and 
equipment   total 
at 1 january 2011 net of accumulated depreciation  425 425
additions  79 79
depreciation  134 134
at 31 december 2011  370 370
 
at 1 january 2011  
cost  466 466
accumulated depreciation  41 41
net carrying amount  425 425
 
at 31 december 2011  
cost  545 545
accumulated depreciation  175 175
net carrying amount  370 370
   176
www africanbarrickgoldcom
notes to the company financial statements continued 
 
7  property plant and equipment continued 
for the year ended 31 december 2010 
in thousands of united states dollars  
furniture and 
equipment   total 
at 12 january 2010 net of accumulated depreciation  – –
additions  466 466
depreciation  41 41
at 31 december 2010  425 425
 
at 12 january 2010  
cost  – –
accumulated depreciation  – –
net carrying amount  – –
  
at 31 december 2010 net of accumulated depreciation  
cost  466 466
accumulated depreciation  41 41
net carrying amount  425 425
8 investment in subsidiaries 
in thousands of united states dollars  
for the 
year ended 
31 december 
2011 
for the 
period since 
incorporation ended 
31 december 
2010 
opening balance  1324568 –
additions  – 1324568
closing balance  1324568 1324568
the subsidiaries in which investments are held as at 31 december 2011 are as follows 
company  principal activity  country of incorporation  
equity interest
2011 
buk holdco ltd  holding company uk 100
1816962 ontario inc  holding company canada 100
9 other receivables 
in thousands of united states dollars  
as at 
31 december 
2011 
as at 
31 december 
2010 
indirect tax receivables  129 295
advance payments  177 117
other receivables  103 11
due from related parties note 18  254 601
total  663 1024
at 31 december 2011 no other receivables were either past due or impaired in determining the recoverability of a receivable the company 
performs a risk analysis 
10 cash and cash equivalents 
in thousands of united states dollars  
as at 
31 december 
2011 
as at 
31 december 
2010 
cash at bank and on hand  2007 175637
money market funds  143863 11854
total  145870 187491
shortterm deposits are made for varying periods of between one day and three months depending on the immediate cash requireme nts of the 
company and earn interest at the respective shortterm deposit rates  
   overview performance governance f inanc ial 
s tatements
shareholder 
information
177
ann ual report and acco unts 2011
notes to the company financial statements continued 
 
7  property plant and equipment continued 
for the year ended 31 december 2010 
in thousands of united states dollars  
furniture and 
equipment   total 
at 12 january 2010 net of accumulated depreciation  – –
additions  466 466
depreciation  41 41
at 31 december 2010  425 425
 
at 12 january 2010  
cost  – –
accumulated depreciation  – –
net carrying amount  – –
  
at 31 december 2010 net of accumulated depreciation  
cost  466 466
accumulated depreciation  41 41
net carrying amount  425 425
8 investment in subsidiaries 
in thousands of united states dollars  
for the 
year ended 
31 december 
2011 
for the 
period since 
incorporation ended 
31 december 
2010 
opening balance  1324568 –
additions  – 1324568
closing balance  1324568 1324568
the subsidiaries in which investments are held as at 31 december 2011 are as follows 
company  principal activity  country of incorporation  
equity interest
2011 
buk holdco ltd  holding company uk 100
1816962 ontario inc  holding company canada 100
9 other receivables 
in thousands of united states dollars  
as at 
31 december 
2011 
as at 
31 december 
2010 
indirect tax receivables  129 295
advance payments  177 117
other receivables  103 11
due from related parties note 18  254 601
total  663 1024
at 31 december 2011 no other receivables were either past due or impaired in determining the recoverability of a receivable the company 
performs a risk analysis 
10 cash and cash equivalents 
in thousands of united states dollars  
as at 
31 december 
2011 
as at 
31 december 
2010 
cash at bank and on hand  2007 175637
money market funds  143863 11854
total  145870 187491
shortterm deposits are made for varying periods of between one day and three months depending on the immediate cash requireme nts of the 
company and earn interest at the respective shortterm deposit rates  
  
 
 
11 share capital 
  number  
share capital  
£’000  
share capital 
us’000  
share premium
us’000 
at 12 january 2010 1–  ––
issuance of ordinary shares at 10 pence each 303246949 30325  45796 –
issuance of shares on ipo 101082317 10108  15415 870950
issuance of overallotment shares 5756232 576  886 50085
transaction costs – –  – 53933
at 31 december 2010 410085499 41009  62097 867102
at 31 december 2011 410085499 41009  62097 867102
12 stockbased compensation 
stock options are granted to executive directors and to selected employees the exercise price of the granted options is determined by the 
remuneration committee before the grant of an option provided that this price cannot be less than the average of the middlemar ket quotation  
of such shares as derived from the london stock exchange dail y official list for the three dealing days immediately preceding the date of grant 
all options outstanding at the end of the year expire in 2017 and 2018 1690 19 of the options granted were exercisable at 31 d ecember 2011  
the vesting period of the options is four years with an exercise period of three years 
movements in the number of options outstanding and their related weighted average exercise prices in pence are as follows 
for the period ended 31 december
average exercise 
price in pence 
per share
2011  
options  
2011  
average exercise 
price in pence 
per share
2010  
options 
2010 
at 1 january 532 676075  – –
granted 497 266931  532 676075
at 31 december 522 943006  532 676075
the weighted average fair value of the options granted during the current year usin g the lattice valuation approach was determined as 166 pence per 
option the significant inputs into the model were weighted average share and exercise price of 497 pence at the grant date volatility range of 40 to 
45 dividend yield of 08 an expected option life of seven years annual riskfree interest rate of 146 and suboptimal exercise multiple of 16x 
13 dividends paid 
the final dividend declared in respect of the year ended 31 december 2010 of us152 million us37 cents per share and the 20 11 interim 
dividend of us131 million us32 cents per share were paid during 2011 and recognised in the financial statements refer to note 19 for  
details of the final dividend declared subsequent to yearend 
14 other current liabilities 
in thousands of united states dollars  
as at 
31 december 
2011 
as at 
31 december 
2010 
trade and other payables  1647 576
accrued expenses and taxes  156 –
payables to related parties note 18 2561 1078
total  4364 1654
15 financial assets and liabilities 
a financial assets 
in thousands of united states dollars  
carrying value
2011  
fair value 
2011  
carrying value
2010  
fair value
2010 
cash and cash equivalents 145870 145870  187491 187491
other receivables 663 663  1024 1024
noncurrent receivables
1
 772680 772680  772680 772680
total financial assets 919213 919213  961195 961195
less current financial assets   
cash and cash equivalents 145870 145870  187491 187491
other receivables 663 663  1024 1024
total noncurrent portion of receivables 772680 772680  772680 772680
1 related party loans are interestfree and have no fixed repayment terms   178
www africanbarrickgoldcom
notes to the company financial statements continued 
 
15 financial assets and liabilities continued 
the fair value of financial assets equal their carrying amount as they were repayable on demand  
b financial liabilities 
revolving credit facility 
on 24 november 2010 the group concluded negotiations with a syndicate of commercial banks led by citibank for the provision of a revolving 
credit facility in a maximum aggregate amount of us150 million the facility has been provided to service the general corporate needs of the 
group and to fund potential acquisitions all provisions contained in the credit facility documentation have been negotiated on normal commercial 
and customary terms for such finance arrangements during 2011 the term of the facility has been extended to 2014 and when dra wn the spread 
over libor will be 350 basis points at 31 december 2011 none of the funds were drawn under th e facility the shares of all significant subsidiaries 
have been pledged as security for the loan 
16 financial risk management 
the company has exposure to the following risks through its commercial and financial operations 
a credit risk and 
b liquidity risk 
this note presents information about the company’s exposure to each of the ab ove risks and the company’s objectives policies and processes for 
assessing and managing risk further quantitative disclosures are included throughout the financial statements 
the board of directors has overall responsibility for the establishment and oversight of the company’s risk management framewor k  
the company’s risk management policies are established to identify and analyse the risks faced by the company to set appropria te risk limits and 
controls and to monitor risks and adherence to limits risk management policies and systems are reviewed regularly to reflect changes in market 
conditions and the company’s activities the company through its training and management standards and procedures aims to maintain a 
disciplined and constructive control environment in which all employees understand their roles and obligations 
a credit risk 
credit risk is the risk that a third party might fail to fulfil its performance obligations under the terms of a financial inst rument for cash and cash 
equivalents and other receivables credit risk represents the carrying amount on the balance sheet 
credit risk arises from loans to two subsidiaries receivables cash and cash equivalents and deposits with banks the company ’s financial assets are 
with counterparties whom the company considers to have an appropriate credit rating location of credit risk is determined by p hysical location  
of the bank branch customer or counterparty the maximum allowable term of maturity for any individual security is 12 months investment 
counterparties must have a credit rating of at least baa2 or better by moody’s investor services or bbb by standard and poor’s no more than 25 
of the aggregate market value of the investment portfolio is maintained in any one country with the exception of the united st ates of america 
united kingdom and barbados or in any one industry group investments are held mainly in united states dollars and cash and ca sh equivalents  
in other foreign currencies are maintained for operational requirements 
company policies are aimed at minimising losses as a result of a counterparty’s failure to honour its obligations the company’ s exposure to credit 
risk is influenced mainly by the individual characteristics of each counterparty the company’s financial assets are with counterparties whom the 
company considers to have an appropriate credit rating  
maximum exposure to credit risk at each reporting date is the carrying value of each class of financial assets in note 15 the company does not  
hold collateral as security for any receivables the company does not grade the credit quality of receivables  
b liquidity risk 
liquidity risk is the risk that the company will not be able to meet its financial obligations as they fall due the company monitors its risk of 
a shortage of funds using projected cash flows and by monitoring the maturity of both its financial assets and liabilities 
the following table outlines the expected maturity of the company’s significant financial liabilities into relevant maturity gr oupings based on  
the remaining period from the balance sheet date to the contractual maturity date as the amounts disclosed in the table are the contractual 
undiscounted cash flows these balances may not agree with the amounts disclosed in the balance sheet 
   overview performance governance f inanc ial 
s tatements
shareholder 
information
179
ann ual report and acco unts 2011
notes to the company financial statements continued 
 
15 financial assets and liabilities continued 
the fair value of financial assets equal their carrying amount as they were repayable on demand  
b financial liabilities 
revolving credit facility 
on 24 november 2010 the group concluded negotiations with a syndicate of commercial banks led by citibank for the provision of a revolving 
credit facility in a maximum aggregate amount of us150 million the facility has been provided to service the general corporate needs of the 
group and to fund potential acquisitions all provisions contained in the credit facility documentation have been negotiated on normal commercial 
and customary terms for such finance arrangements during 2011 the term of the facility has been extended to 2014 and when dra wn the spread 
over libor will be 350 basis points at 31 december 2011 none of the funds were drawn under th e facility the shares of all significant subsidiaries 
have been pledged as security for the loan 
16 financial risk management 
the company has exposure to the following risks through its commercial and financial operations 
a credit risk and 
b liquidity risk 
this note presents information about the company’s exposure to each of the ab ove risks and the company’s objectives policies and processes for 
assessing and managing risk further quantitative disclosures are included throughout the financial statements 
the board of directors has overall responsibility for the establishment and oversight of the company’s risk management framewor k  
the company’s risk management policies are established to identify and analyse the risks faced by the company to set appropria te risk limits and 
controls and to monitor risks and adherence to limits risk management policies and systems are reviewed regularly to reflect changes in market 
conditions and the company’s activities the company through its training and management standards and procedures aims to maintain a 
disciplined and constructive control environment in which all employees understand their roles and obligations 
a credit risk 
credit risk is the risk that a third party might fail to fulfil its performance obligations under the terms of a financial inst rument for cash and cash 
equivalents and other receivables credit risk represents the carrying amount on the balance sheet 
credit risk arises from loans to two subsidiaries receivables cash and cash equivalents and deposits with banks the company ’s financial assets are 
with counterparties whom the company considers to have an appropriate credit rating location of credit risk is determined by p hysical location  
of the bank branch customer or counterparty the maximum allowable term of maturity for any individual security is 12 months investment 
counterparties must have a credit rating of at least baa2 or better by moody’s investor services or bbb by standard and poor’s no more than 25 
of the aggregate market value of the investment portfolio is maintained in any one country with the exception of the united st ates of america 
united kingdom and barbados or in any one industry group investments are held mainly in united states dollars and cash and ca sh equivalents  
in other foreign currencies are maintained for operational requirements 
company policies are aimed at minimising losses as a result of a counterparty’s failure to honour its obligations the company’ s exposure to credit 
risk is influenced mainly by the individual characteristics of each counterparty the company’s financial assets are with counterparties whom the 
company considers to have an appropriate credit rating  
maximum exposure to credit risk at each reporting date is the carrying value of each class of financial assets in note 15 the company does not  
hold collateral as security for any receivables the company does not grade the credit quality of receivables  
b liquidity risk 
liquidity risk is the risk that the company will not be able to meet its financial obligations as they fall due the company monitors its risk of 
a shortage of funds using projected cash flows and by monitoring the maturity of both its financial assets and liabilities 
the following table outlines the expected maturity of the company’s significant financial liabilities into relevant maturity gr oupings based on  
the remaining period from the balance sheet date to the contractual maturity date as the amounts disclosed in the table are the contractual 
undiscounted cash flows these balances may not agree with the amounts disclosed in the balance sheet 
  
 
 
 
for the period ended 31 december 2011  
in thousands of united states dollars less than 1 year  1 to 3 years  3 to 5 years  over 5 years  total 
other noncurrent liabilities – 1197 –  – 1197
other current liabilities 4364 – –  – 4364
total 4364 1197 –  – 5561
          
for the period ended 31 december 2010 
in thousands of united states dollars less than 1 year  1 to 3 years  3 to 5 years  over 5 years  total 
other noncurrent liabilities – 327 –  – 327
other current liabilities 1654 – –  – 1654
total 1654 327 –  – 1981
management considers that the company has adequate current assets and forecast cash flow from operations to manage liquidity ri sks arising from 
settlement of current liabilities and noncurrent liabilities 
capital risk management 
the primary objective of the company’s capital management is to ensure that it maintains a strong balance sheet and low gearing ratio to support 
its business and provide financial flexibility in order to maximise shareholder value in order to ensure a strong balance sheet and low gearing ratio 
management thoroughly evaluates all material projects and potential acquisitions and approves them at its executive committee b efore submission 
to the board for ultimate approval where applicable  
17 operating lease arrangements 
in thousands of united states dollars  
for the 
year ended 
31 december 
2011 
for the 
period since 
incorporation ended 
31 december 
2010 
minimum lease payments under operating leases recognised in income for the period 264 131
total  264 131
at the balance sheet date the company had outstanding commitments for future minimu m lease payments under noncancellable operating leases 
which fall due as follows 
in thousands of united states dollars  
as at
31 december 
2011 
as at
31 december 
2010 
within one year  264 262
in the second to fifth years inclusive  1056 787
after five years  1188 1443
total  2508 2492
18 related party balances and transactions 
the company had the following related party balances and transactions during the year ended 31 december 2011 related parties a re those entities 
owned or controlled by barrick which is the ultimate controlling party of the company 
transactions with related parties are as follows 
a transactions 
in thousands of united states dollars  
for the 
year ended 
31 december 
2011 
for the 
period since 
incorporation ended 
31 december 
2010 
management fees  1503 797
provision of goods and services   663 460
purchase of goods and services  6224 1734
special dividend payment  – 258680
interim dividend payment  20924 4852
total  24982 264009
 
   180
www africanbarrickgoldcom
notes to the company financial statements continued 
 
18 related party balances and transactions continued 
management fees relate to an allocation of cost incurred based on time spent by management for the benefit of the related party  a 5 markup  
is applied to these costs provision and purchase of goods and services tofrom related parties are on normal commercial terms and conditions 
provision of services relates to costs incurred by the company an d recharged to related parties with no markup purchase of go ods and services 
relates to costs incurred by related parties and recharged to the company with no markup services purchased relate mainly to insurance  
software licences and professional services 
b balances due from related parties 
in thousands of united states dollars  
as at 
31 december 
2011 
as at 
31 december 
2010 
due from subsidiaries 
bulyanhulu gold mine ltd  36 92
pangea minerals ltd  140 146
north mara gold mine ltd  36 151
barrick africa pty ltd  – 141
barbco one ltd  28 67
other  14 4
total  254 601
the receivables from related parties arise mainly from the provis ion of goods and services the receivables are unsecured in na ture and bear no 
interest there are no provisions held against receivables from related parties  
c balances due to related parties 
in thousands of united states dollars  
as at 
31 december 
2011 
as at 
31 december 
2010 
due to holding company 
barrick gold corporation  191 1027
due to fellow subsidiaries  
barrick gold australia ltd  – 36
barrick africa pty ltd  2356
barrick gold of north america inc  14 15
total  2561 1078
the payables to barrick arise mainly from purchase transactions noted above the payables are unsecured and bear no interest  
d balances due from related parties funding in nature 
in thousands of united states dollars  
as at 
31 december 
2011 
as at 
31 december 
2010 
buk subsidiary  772680 772680
total  772680 772680
related party borrowings relate to amounts due from buk holdco ltd these amounts are interest free and have no fixed repayment terms but are 
treated as longterm loans as there is no intention to recall the loan within 12 months  
19 post balance sheet events 
dividend 
a dividend in respect of the year ended 31 december 2011 of us131 cents per share amounting to a final dividend of us163 cen ts per share for 
2011 is to be proposed at the annual general meeting on 19 april 2012 these financial statements do not reflect this dividend payable  overview performance governance financial 
statements
shareholder 
information
181
ann ual report an d acco unts 2011
glossary of terms
the following definitions and terms are used throughout this report in addition specific terms and definitions relating to mineral reserves and 
resources can be found on page 112
abg or the 
company
a frican barrick g old plc a company 
incorporated under the c ompanies a ct 2006 
and registered in e ngland and w ales with 
registered number 7123187
abg group 
or the group
the c ompany and its subsidiary undertakings
agm annual general meeting
amortisation 
and other cost 
per ounce sold 
has the meaning given to it on page 51
articles the articles of association of the c ompany
assay a chemical test performed on a sample of  
ores or minerals to determine the amount  
of valuable metals contained
au gold
average head 
grade
average ore grade fed into the mill
average 
realised gold 
price per  
ounce sold
has the meaning given to it on page 50
barrick barrick g old c orporation a company existing 
under the laws of the province of o ntario c anada
barrick group barrick and its subsidiary undertakings
board the board of directors of a bg
cash cost per 
ounce sold
has the meaning given to it on page 50
cash cost per 
tonne milled
has the meaning given to it on page 51
cil carbon in leach a method of recovering gold and 
silver in which a slurry of goldsilver bearing ore 
carbon and cyanide are mixed together the 
cyanide dissolves the gold which is subsequently 
absorbed by the activated carbon whose base is 
usually ground coconut shells
cim the c anadian institute of mining metallurgy  
and petroleum
code of 
conduct
a bg ’s c ode of business c onduct and e thics
companies act 
2006
the c ompanies a ct 2006 of e ngland and w ales 
as amended
concentrate a fine powdery product of the milling process 
containing a high percentage of valuable metal
contained 
ounces
represents total ounces in a mineral reserve before 
reduction to account for ounces not able to be 
recovered by the applicable metallurgical process
coproduct a secondary metal or mineral product recovered 
in the milling process such as copper and silver
crest the computerised settlement system operated by 
e uroclear uk  ireland l imited to facilitate the 
transfer of title to shares in uncertificated form
crushing breaking of ore from the size delivered from the 
mine into smaller and more uniform fragments 
to be then fed to grinding mills or to a leach pad
csr corporate social responsibility
cu copper
cutoff grade the minimum metal grade at which material  
can be economically mined and processed  
used in the calculation of ore reserves
development work carried out for the purpose of opening up 
a mineral deposit in an underground mine this 
includes shaft sinking crosscutting drifting  
and raising in an open pit mine development 
includes the removal of overburden
directors the directors of a bg for the reporting period 
details of whom are set out on pages 78 and 79 
of this report
disclosure and 
transparency 
rules
the disclosure and transparency rules made by 
the fsa under part vi of fsma
dollar or us 
or 
united states dollars
doré doré bullion is an impure alloy of gold and silver 
and is generally the final product of mining and 
processing the doré bullion will be transported 
to be refined to high purity metal
drift a horizontal underground opening that follows 
along the length of a vein or rock formation  
as opposed to a crosscut which crosses the  
rock formation 182
www african barri c kgo l dc om
glossary of terms continued
driftandfill a method of underground mining used for 
flatlying mineralisation or where ground 
conditions are less competent
drilling core drilling with a hollow bit with a diamond 
cutting rim to produce a cylindrical core  
that is used for geological study and assays 
used in mineral exploration
drilling infill any method of drilling intervals between 
existing holes used to provide greater geological 
detail and to help establish reserve estimates
drilling 
reverse 
circulation
drilling method that uses a rotating cutting  
bit within a doublewalled drill pipe and 
produces rock chips rather than core a ir or 
water is circulated down to the bit between  
the inner and outer wall of the drill pipe  
the chips are forced to the surface through  
the centre of the drill pipe and are collected 
examined and assayed
ebitda has the meaning given to it on page 50
epo e nvironmental protection o rder
executive 
directors
the executive directors of the c ompany  
g reg hawkins and kevin jennings
exploration prospecting sampling mapping diamond 
drilling and other work involved in searching 
for ore
financial 
services 
authority  
or fsa
the f inancial s ervices a uthority of the  
united kingdom
flotation a milling process in which valuable mineral 
particles are induced to become attached to 
bubbles and float as others sink
fsma the uk f inancial s ervices and markets a ct 2000 
as amended
grade the amount of metal in each tonne of ore 
expressed as troy ounces per tonne or grams  
per tonne for precious metals and as a 
percentage for most other metals
gt grams per metric tonne
ias international a ccounting standards
ifrs international f inancial r eporting standards  
as adopted for use in the e uropean union
ipo a bg ’s initial public offering on the main 
market of the l ondon stock e xchange
iso international standards o rganisation
koz thousand ounces
kpis key performance indicators
kt thousand metric tonnes
leach pad a large impermeable foundation or pad used  
as a base for ore during heap leaching the pad 
prevents the leach solution from escaping out  
of the circuit
libor the british bankers’ a ssociation interest 
s ettlement r ate for the relevant currency and 
period displayed on the appropriate page of  
the r euters’ screen
listing rules the rules relating to admission to the o fficial 
l ist made in accordance with section 73a 2  
of fsma
london stock 
exchange or 
lse
l ondon stock e xchange plc
lti lost time injury meaning an occupational injury 
or illness that results in days away from work
ltifr lost time injury frequency rate the 
measurement of which is outlined on page 25
majority 
shareholder
barrick
mda a mineral development agreement
mdn mdn inc a company existing under the laws 
of the province of québec 
mill a plant in which ore is treated and metals are 
recovered or prepared for smelting also a 
revolving drum used for the grinding of ores  
in preparation for treatment
moz million ounces
mt million metric tonnes
naf dump n on a cid f orming waste dump
ngos nongovernmental organisations
ni 43101 c anadian n ational instrument 43101 overview performance governance financial 
statements
shareholder 
information
183
ann ual report an d acco unts 2011
nonexecutive 
directors
the n one xecutive directors of the c ompany 
being as at yearend a aron r egent james c ross 
a ndre f alzon stephen g albraith david 
hodgson michael kenyon a mbassador 
mwapachu and derek pannell
official list the o fficial l ist of the f inancial  
s ervices a uthority
open pit a mine where the minerals are mined entirely 
from the surface
operational 
cash flow  
per share
has the meaning given to it on page 51
ordinary 
shares
o rdinary shares of 10 pence each in the capital 
of the c ompany
ore rock generally containing metallic or  
nonmetallic minerals which can be  
mined and processed at a profit
ore body a sufficiently large amount of ore that can be 
mined economically
over burden is the material that lies above the area of 
economic interest such as soil and ancillary 
material that is removed during surface mining
oxide ore mineralised rock in which some of the original 
minerals have been oxidised o xidation tends  
to make the ore more amenable to cyanide 
solutions so that minute particles of gold will  
be readily dissolved
oz troy ounce 311035g
p af dump potential a cid f orming waste dump
pgi pangea g oldfields inc a c anadian subsidiary  
of a bg
preipo 
reorganisation
the reorganisation of the companies comprising 
the a bg g roup into a separate corporate  
group prior to the ipo
reclamation the process by which lands disturbed as a result 
of mining activity are modified to support 
beneficial land use r eclamation activity may 
include the removal of buildings equipment 
machinery and other physical remnants of 
mining closure of tailings storage facilities 
leach pads and other mine features and 
contouring covering and revegetation of  
waste rock and other disturbed areas
recovery rate a term used in process metallurgy to indicate 
the proportion of valuable material physically 
recovered in the processing of ore it is generally 
stated as a percentage of the material recovered 
compared to the total material originally present
refining the final stage of metal production in which 
impurities are removed from the molten metal
relationship 
agreement
the relationship agreement between barrick  
and a bg
rom runofmine a term used loosely to describe ore 
of average grade
sag mill motor semiautogenous grinding mill motor
services 
agreement
the services agreement between barrick  
and a bg 
senior 
leadership 
t eam or senior 
management
those members of the a bg g roup’s 
management team details of whom  
are set out on page 80
shaft a vertical or inclined excavation in rock for  
the purpose of providing access to an ore body 
usually equipped with a hoist at the top which 
lowers and raises a conveyance for handling 
workers and materials
shareholders holders of o rdinary shares
spot or  
spot price
the purchase price of a commodity at the 
current price normally this is at a discount  
to the longterm contract price
stripping removal of overburden or waste rock overlying  
an ore body in preparation for mining by open  
pit methods
tailings the material that remains after all economically 
and technically recoverable precious  
metals have been removed from the ore  
during processing
tailings storage 
facility
a natural or manmade confined area suitable 
for depositing the material that remains after 
the treatment of ore
tanesco t anzanian e lectric supply c ompany l imited
tra t anzanian r evenue a uthority
trifr total reportable injury frequency rate the 
measurement of which is outlined on page 25 184
www african barri c kgo l dc om
glossary of terms continued
tulawaka 
agreement
the joint venture agreement dated 15 s eptember 
1998 as amended from time to time between 
pgi and mdn
tusker gold t usker g old l imited a company incorporated 
under the laws of w estern a ustralia
tzs t anzanian shilling
uk corporate 
governance 
code
the uk c orporate g overnance c ode dated  
june 2010 issued by the uk f inancial  
r eporting c ouncil 
united 
kingdom or uk
the united kingdom of g reat britain and 
n orthern ireland
united states  
or us
the united states of a merica its territories  
and possessions any state of the united states  
of a merica and the district of c olumbia
vat valueadded tax
voluntary 
principles
means the v oluntary principles on s ecurity  
and human r ights
basis of preparation for the reporting of tax data
this basis of preparation supports the reporting of tax data contained  
on page 54 of this report g enerally the references to “t ax” in this  
context means any amount of money required to be paid to or repaid 
by a government
in overview the key information presented as regards t ax is as follows 
t axes borne – these are taxes that the a bg g roup is obliged to pay to a 
government on its own behalf or taxes that it is obliged to pay to a third 
party and that cancannot be recovered from a government the main 
taxes that we have included in this category are
government royalties – these comprise payments made to governments 
in the form of royalties t ypically these tend to become payable and  
are paid in the year to which they relate these taxes form part of our 
operating costs 
corporate income tax – this comprises any tax on the business  
calculated on the basis of its profits income or capital gains t ypically 
these taxes would be reflected in corporate income tax returns made  
to governments 
customs duties – these comprise all customsexciseimport and  
export duties t ypically these taxes tend to become payable and are  
paid to governments at the point where goods are imported and 
exported from territories these taxes form part of our operating  
and capital incurred costs
employer payroll taxes – these comprise payroll and employer taxes 
payable as a result of a company’s capacity as an employer t ypically 
these taxes would be reflected in payroll tax returns made to 
governments and tend to be payable and are paid on a regular basis 
often monthly throughout the year shortly after the submission  
of the return these taxes form part of our operating costs 
environmental taxes – these comprise rea levies or other payments  
to governments relating to environmental policy t ypically these taxes 
tend to be payable on an annual basis these taxes are also included in 
our operating costs 
indirect taxes – this comprises v at and other fuel levies that arise on 
the purchase of goods and services and are paid to third parties to be 
refunded by governments t ypically these taxes would form part of a 
sales tax return made to governments r efunds received are included  
in the taxes refunded category 
stamp duty – this comprises taxes that arise on transfers of assets or 
capital t ypically these taxes would be reflected in stamp duty returns 
made to governments and tend to become payable and are paid  
to governments shortly after capital or assets are transferred 
t axes collected – these are taxes that a company is obliged to collect 
from others and pay to government the main taxes that we have 
included in this category are
employee payroll taxes – these comprise payroll and employee taxes 
withheld from employee remuneration and paid to governments  
ie taxes collected by a bg and remitted to governments on behalf of 
employees under arrangements such as pa ye schemes t ypically these 
taxes would be reflected in payroll tax returns made to governments  
and tend to be payable and are paid on a regular basis often monthly 
throughout the year shortly after submission of the return 
withholding taxes collected from suppliers – these comprise taxes that 
are required to be withheld in advance on payments made to suppliers 
t ypically these taxes would be reflected in income tax returns made  
to governments and tend to be payable and are paid on a regular  
basis often monthly throughout the year shortly after the submission 
of the return 
t axes refunded – these are taxes that are refunded by governments  
to a bg  these mostly comprise the following
indirect taxes mainly vat and fuel levies – t ypically indirect taxes  
would tend to become repayable and are repaid by governments 
regularly often quarterly throughout the year shortly after the 
submission of relevant sales tax returns a lso included are other  
refunds received shareholder enquiries
all enquiries concerning shareholdings including notification of  
change of address or dividend payments should be made to abg’s 
registrars computershare investor services plc whose contact  
details are as follows
computershare investor services plc 
the pavilions 
bridgwater road 
bristol 
bs99 6zz
helpline number 44 0 870 707 1895
computershare online enquiry service
computershare provides a range of services through its online  
portal investor centre which can be accessed free of charge at  
wwwinvestorcentrecouk this service enables shareholders to check 
details of their shareholdings or dividends download forms to notify 
changes in personal details and access other relevant information
payment of dividends
details of dividends proposed in relation to the year are contained  
in the directors’ report on page 95 shareholders may elect to receive 
payment of the 2011 final dividend and any future dividend in pounds 
sterling directly to a bank or building society account payments of 
amounts in us dollars shall be made by cheque and sent by post to 
shareholders registered addresses on 25 may 2012 any shareholders 
who elect to receive a dividend in pounds sterling but who do not 
provide a direct credit mandate will receive their dividend by cheque 
which will be sent to shareholders registered addresses on 25 may 2012
if you wish to receive the 2011 final dividend and any future dividend  
by direct credit and have not already made a payment election please 
request a dividend mandate form from the shareholder helpline and 
return it to computershare at the address above by no later than  
8 may 2012 alternatively direct credit mandate instructions can be 
updated online at wwwinvestorcentrecouk
currency election forms can be returned using the prepaid envelope 
provided with the materials accompanying this report elections made 
after 8 may 2012 will be applied to subsequent dividends only
should you have any queries relating to the payment of  
dividends please call computershare’s shareholder helpline  
on 44 0 870 707 1895
electronic communications
abg has obtained shareholders’ consent to send and supply documents 
and information to shareholders in electronic form and via abg’s 
website in accordance with provisions contained in abg’s articles  
of association
increased use of electronic communications will deliver additional 
savings to abg in terms of administration printing and postage costs 
as well as speeding up the provision of information to shareholders  
the reduced use of paper will also have environmental benefits
shareholder security
shareholders should be cautious of any unsolicited financial advice 
offers to buy shares at a discount or any other unsolicited advice 
regarding investment matters more detailed information can be 
provided at wwwmoneymadeclearfsagovuk
financial calendar
financial yearend 31 december 2011
preliminary results for 2011 16 february 2012
annual general meeting 19 april 2012
quarterly results q1 2012 19 april 2012
payment date for 2011 final dividend 25 may 2012
half year report 2012 july 2012
quarterly results q3 2012 october 2012
quarterly results q4 2012 january 2013
this report has a cover printed on hello silk and text pages printed on 
soporset premium offset paper the paper has been independently 
certified according to the rules of the forest stewardship council™ 
fsc all pulps used are mix elemental chlorine free ecf and  
totally chlorine free tcf the inks used are all vegetable oil based
printed at pureprint group limited iso14001 fsc certified and 
carbonneutral®
consultancy design and production by black sun plc  
wwwblacksunplccom african barrick gold annual report  accounts 2011
contact details
abg offices
registered office 
african barrick gold plc  
6 st james’s place 
london sw1a 1np 
united kingdom
registered number 7123187
business address 
5th floor 
no 1 cavendish place 
london w1g 0qf 
united kingdom 
johannesburg office 
2nd floor 
bedford square offices suite 
bedford gardens 
bedfordview 
2007 
south africa
dar es salaam office 
plot 1736 hamza aziz road  
msasani peninsula  
p o box 1081 dar es salaam  
tanzania
contacts
abg investor relations 
andrew wray head of corporate 
development and investor relations  
phone 44 0 207 129 7150 
email awrayafricanbarrickgoldcom
giles blackham  
investor relations manager 
phone 44 0 207 129 7150 
email gblackhamafricanbarrickgoldcom
abg registrars 
computershare investor services plc  
the pavilions 
bridgwater road 
bristol bs99 6zz 
united kingdom
abg corporate brokers 
jp  morgan securities ltd  
125 london w all 
london ec2y 5aj 
united kingdom
rbc capital markets 
thames court 
one queenhithe 
london ec4v 4de 
united kingdom
auditors
pricewaterhousecoopers llp 
1 embankment place 
london wc2n 6rh 
united kingdom
legal advisers
shearman  sterling llp 
broadgate west 
9 appold street 
london ec2a 2ap 
united kingdom
additional information
additional information regarding  
abg can be found on the website 
wwwafricanbarrickgoldcom


Summary:
 2
www africanbarrickgoldcom
performance highlights
continuing to 
deliver strong finan cials
s ome of the year’s key 
achievements include
ebi tda
1
 up 30 on 2010
r ecord cash margins
1
 of  
us895 per ounce
trebling of proposed final dividend  
to us131 cents per share
a veraged realised gold price
1
  
of us1587 per ounce for 2011
l aunch of abg d evelopment 
maendeleo f und the largest 
community development fund  
of its kind in tanzania
secondary listing on the  
d ar es salaam stock exchange
a successful year for exploration
 – highly successful drilling campaign 
at n yanzaga led to a fourfold 
increase in the inpit mineral 
r esource at the tusker deposit to 
35moz a u indicated and 06moz  
a u inferred 
 – tulawaka mine life extended twice 
now through to the end of 2012
 – initial resource declared at  
g olden r idge
revenue
us’000
us1217915
25 11 10 09 08 07
gold sales
2
oz
699539oz
3 11 10 09 08 07
gross profit
us’000
us513801
33 11 10 09 08 07
ebitda
1
us’000
us544091
30 11 10 09 08 07
operating cash 
flow per share
13
usshare
us122share
44 11 10 09 08 07
earnings 
per share
3
usshare
us670centsshare
26 11 10 09 08 07
total reserves
and resources
moz
315moz
17 11 10 09 08 07
lost time injury 
frequency rate
frequency rate
01
11 10 09 08 07 10
cash cost per 
ounce sold
1
usoz
us692oz
22 11 10 09 08 07 overview performanc e gov ernanc e financial 
sta temen ts
shar eho ld er 
informa tion
3
ann ual r epor t and acco un ts 2011
f inancial highlights
 – r evenue of us1218 million up 25 on 2010
 – ebi tda
1
 of us544 million up 30 on 2010
 – r ecord cash margins
1
 of us895 per ounce an increase of  
33 on 2010
 – n et income of us275 million with an eps of us670 cents  
up 26 on 2010
 – o perational cash flow of us498 million an increase of  
44 on 2010
 – c ash position of us584 million as at 31 d ecember 2011
 – proposed increase in final dividend to us131 cents per share 
making the total dividend for 2011 us163 cents per share  
up 208 on 2010
o perational highlights
 – a ttributable gold sales
2
 for the year of 699539 ounces 
g roup sales
2
 of 724574 ounces a 3 decrease on 2010 
driven by lower production
 – a ttributable gold production
2
 of 688278 ounces  
g roup production
2
 of 713508 ounces 2 below  
2010 production primarily due to the waste stripping 
programme at n orth mara and impact of power 
unreliability at buzwagi
 – increase in full year production at bulyanhulu buzwagi 
and tulawaka with lower production at n orth mara  
due to the planned focus on waste stripping
 – c ash costs
1
 of us692 per ounce an increase of 22  
on 2010 due to a combination of industry cost inflation 
increased diesel usage and higher headcount
1  c ash costs per ounce sold ebi tda  cash margin average realised gold price per ounce sold and operating cash flow per share are nonifr s financial performance measures with  
no standard meaning under ifr s r efer to n onifr s measures on page 50 for the full definitions of each measure
2  production and sold ounces reflect equity ounces which exclude 30 of tulawaka’s production base g roup production and sales consolidate 100 of tulawakas production  
and sales base
3  the 2007–2009 years’ basic earnings per share and operating cash flow per share comparatives were calculated using the 2010 number of average weighted shares as the  
c ompany was not incorporated in the prior years stated and thus had no share capital
improving the protability of our assets
group gold production ebitda
bulyanhulu north mara tulawaka buzwagi
6
196541
166113
73
20
170832
128627
16
40
58871
67973
74
attributable gold production
2
 oz and ebitda
1
 us’000 by mine
256504
42
262034
1