annual report  accounts 2010
african barrick gold annual report  accounts 2010
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
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
morgan stanley  co international plc 
25 cabot square 
canary wharf 
london e14 4qa 
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 electronic communications
at the forthcoming agm abg will seek shareholders’ consent to send 
or 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
under the provisions of the companies act 2006 abg is also 
required to ask you individually for your consent to supply documents 
electronically via abg’s website the relevant documentation relating 
to this consent is contained in the accompanying materials to this 
report entitled important notice – legislation change if you agree to 
abg sending or supplying documents and information via the website 
please submit your email address by visiting wwwinvestorcentrecouk
ecomms if you would prefer to receive documents and information in 
paper form rather than via the website you will need to let us know by 
completing the reverse of the form and returning it to computershare 
at the address detailed above
if we do not receive a response from you within 28 days of the date of 
notice of the agm then you will be taken to have agreed that abg may 
send or supply documents and information to you via its website abg 
will write to you with details of how you can access the information
further details regarding electronic communications can be found in 
the notice accompanying this report 
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 year end 31 december 2010
preliminary results for 2010 16 february 2011
annual general meeting 21 april 2011
quarterly results q1 2011 26 april 2011
payment date for 2010 final dividend 26 may 2011
half year report 2011 july 2011
quarterly results q3 2011 october 2011
quarterly results q4 2011 january 2012
this report has a cover printed on hello silk and text pages printed on 
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shareholder enquiries
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 0870 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 82 and notes 13 and 34 to the financial 
statements shareholders may elect to receive payment of the 2010 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 
26 may 2011 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 26 may 2011
if you wish to receive the 2010 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 
6 may 2011 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 6 may 2011 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
about african barrick gold
go online to find more information
wwwafricanbarrickgoldcom
forwardlooking statements
this report includes ‘forwardlooking statements’ that express or imply expectations 
of future events or results forwardlooking statements are statements that are not 
historical facts these statements include without limitation financial projections 
and estimates and their underlying assumptions statements regarding plans 
objectives and expectations with respect to future production operations costs 
products and services and statements regarding future performance forward
looking statements are generally identified by the words ‘plans ’ ‘expects ’ ‘anticipates ’ 
‘believes ’ ‘intends ’ ‘estimates’ and other similar expressions 
all forwardlooking statements involve a number of risks uncertainties and other 
factors although abg’s management believes that the expectations reflected 
in such forwardlooking statements are reasonable investors are cautioned 
that forwardlooking information and statements are subject to various risks 
and uncertainties many of which are difficult to predict and generally beyond 
the control of abg that could cause actual results and developments to differ 
materially from those expressed in or implied or projected by the forwardlooking 
information and statements contained in this report factors that could cause or 
contribute to differences between the actual results performance and achievements 
of abg include but are not limited to political economic and business conditions 
industry trends competition commodity prices changes in regulation currency 
fluctuations including the us dollar south african rand and tanzanian shilling 
exchange rates abg’s ability to recover its reserves or develop new reserves 
including its ability to convert its resources into reserves and its mineral potential 
into resources or reserves and to timely and successfully process its mineral 
reserves risks of trespass theft and vandalism changes in its business strategy 
as well as risks and hazards associated with the business of mineral exploration 
development mining and production accordingly investors should not place 
reliance on forwardlooking statements contained in this report 
the forwardlooking statements in this report reflect information available at the 
time of preparing this report subject to the requirements of the disclosure and 
transparency rules and the listing rules or applicable law abg explicitly disclaims 
any obligation or undertaking publicly to release the result of any revisions to any 
forwardlooking statements in this report that may occur due to any change in 
abg’s expectations or reflect events or circumstances after the date of this report 
no statements made in this report regarding expectations of future profits are profit 
forecasts or estimates and no statements made in this report should be interpreted 
to mean that abg’s profits or earnings per share for any future period will 
necessarily match or exceed the historical published profits or earnings per share 
of abg or any other level
a quality african 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 north west 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 by
 – 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 w e are listed on the main 
market of the london stock exchange 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 in accordance with ifrs as adopted by the european 
union unless otherwise stated in this report annual report and accounts 2010
1
overview
highlights and an introduction to our business 
and the way we work
performance
operational performance market review 
key performance data and a review of our 
sustainable approach
governance
an explanation of our approach to corporate 
governance remuneration policies and practices 
and the people who champion them
financial statements
detailed financial information for the year 
ended 31 december 2010
shareholder information
useful information for owners of abg shares
find what you’re looking for
additional information within this report is 
referenced with this symbol
pg
 more information within this report
performance highlights  02
group at a glance 04
chairman’s statement  08
chief executive officer’s statement  10
market review 13
our strategy 16
 – optimise case studies 18
 – expand case studies 22
 – grow case studies 26
the way we work 30
key performance indicators 32
chief operating officer’s review 34
operating review  36
 – bulyanhulu 36
 – buzwagi 38
 – north mara 40
 – tulawaka 42
exploration review 44
financial review 48
corporate responsibility 56
risk management 64
board of directors  70
senior management 72
corporate governance report 73
directors’ report 81
directors’ responsibilities statement 86
remuneration report 87
reserves and resources 96
independent auditors’ report on the consolidated financial statements 101
consolidated financial statements 102
notes to the consolidated financial statements 106
parent company financial statements 149
notes to the parent company financial statements 153
glossary of terms  166
mining statistical information 168
shareholder enquiries 169
overview performance governance financial statements shareholder information
the overview and performance sections make up the business review in accordance with  
section 417 of the companies act 2006 2
wwwafricanbarrickgoldcom
some of the year’ s key achievements include 
 – completing our initial public offering and listing on the main market  
of the london stock exchange in march 2010
 – generating strong sales ounces for 2010 up 6 on 2009 due to sales  
of concentrate on hand
 – making encouraging progress on our portfolio of growth projects
 – identifying an initial highgrade underground resource at north mara 
 – strengthening our management team at all levels throughout the year
 – achieving a year end balance sheet with cash in excess of us400 million 
 – putting a us150 million credit facility in place
 – making continued investments in operational efficiency initiatives
performance highlights
the optimisation of our assets begins
ebitda by segment us’000
1
181233
95976
152840
39062
49944

0
group gold production oz
3
259873
186019
212947
700934 
42094
key
 bulyanhulu buzwagi north mara tulawaka other
 including corporate administration and exploration costs annual report and accounts 2010
3
performance governance financial statements shareholder information overview
financial highlights
 – net income of us218 million
 – earnings per share of us532 cents  
up 272 on 2009
 – ebitda
1
 of us419 million up 68 
on 2009 
 – operational cash flow of us345 
million an increase of 78 on 2009 
 – revenue
2
 of us975 million up 37 
on 2009 
 – recommended final dividend of us37 
cents per share and a total dividend of 
us53 cents per share
operational highlights
 – sales for the year reach 724083 ounces 
a 6 increase on 2009
 – full year production
3
 of 700934 ounces 
2 lower than 2009 production
 – cash costs of us569 per ounce
1
 an 
increase of 7 on 2009
 – bulyanhulu and north mara showed 
consistent production and cost 
performance throughout the year
 – measures undertaken at buzwagi 
during the year began to show positive 
effects during the fourth quarter 
 – tulawaka focus successfully shifted 
from closure to mine life extension
a successful year for exploration
 – initial highgrade underground 
resource declared at north mara under 
the gokona and nyabigena pits
 – higher grades at depth with additional 
near surface mineralisation indicated 
at the nyanzaga project
revenue
2
us’000
07 08 09 10
us975021
gold sales 
attributable
3
oz
07 08 09 10
 724083 oz
gross prot
us’000
07 08 09 10
us385982
ebitda
1
us’000
07 08 09 10
us419167 
operating cash ow 
per share
14
usshare
07 08 09 10
us842 centsshare 
earnings per share
4
usshare
07 08 09 10
us532 centsshare
attributable 
production
3
oz
07 08 09 10
700934 oz
t otal reserves 
and resources
moz
07 08 09 10
269 moz
cash cost 
per ounce sold
1
usoz
07 08 09 10
us569oz
1 cash costs per ounce sold ebitda and operating cash flow per share are nonifrs financial performance measures with no standard meaning under ifrs refer to  
“nonifrs measures” on page 54 for the full definitions of each measure
2 based on restated revenue to include sales of coproducts refer to page 48 and note 2a on page 107 as part of the notes to the consolidated financial statements
3 production and sold ounces reflect equity ounces which exclude 30 of tulawaka’s production base
4 the prior years’ basic earnings per share and operating cash flow per share comparatives were calculated using the 2010 number of average weighted shares as the company  
was not incorporated in the prior years stated and thus had no share capital 4
wwwafricanbarrickgoldcom
where we operate
currently all of abg’s mining operations 
are in tanzania we believe that tanzania 
possesses significant mining potential 
critically it has an established legal and 
regulatory framework for mining companies 
and a history of political stability and 
democratically elected governments  
at present we have four gold producing 
mines all in north west tanzania these  
are bulyanhulu buzwagi tulawaka and  
north mara 
group at a glance
a focus on africa
headquarters london uk
our office in london serves as abg’s corporate headquarters and is the base for abg’s executive 
directors and other members of the senior leadership team including the general counsel and 
the head of corporate development and investor relations 
regional office johannesburg south africa
our johannesburg office is the regional base for administrative finance human resources and 
procurement functions and a number of technical services for our operations
regional office dar es salaam t anzania
our office in dar es salaam serves as the primary interface with the government in addition to 
being the logistical base in tanzania which provides incountry support to our operations other 
functions located in this office include community relations and a number of technical services
producing mines
bulyanhulu buzwagi north mara t ulawaka 70
key features
•	 production of 259873 oz in 2010
•	 underground mine with a life of 25 years
•	 proven and probable reserves of 
11026000 oz
key features
•	 production of 186019 oz in 2010
•	 open pit mine with a 13year mine life
•	 proven and probable reserves of 
2892000 oz
key features
•	 production of 212947 oz in 2010
•	 open pit mine consisting of four open pits 
with a tenyear mine life
•	 proven and probable reserves of 
2836000 oz
key features
•	 production of 42094 oz in 2010
•	 completed open pit mine with 
underground access ramp
•	 proven and probable reserves of 67000 oz
key priorities for 2011
•	 accelerate underground production at 
upper east zone
•	 continue strong commitment to training 
with a focus on specialised skills
key priorities for 2011
•	 continue the development and training  
of the operation’s workforce
•	 continue the acceleration of stage  
two mining
key priorities for 2011
•	 complete feasibility study for  
north mara underground
•	 commission water treatment plant
key priorities for 2011
•	 open west pit extension to supplement 
production
•	 evaluate additional opportunities to further 
extend the mine life
pg
 more information on page 36
pg
 more information on page 38
pg
 more information on page 40
pg
 more information on page 42 annual report and accounts 2010
5
performance governance financial statements shareholder information overview
producing mines
bulyanhulu buzwagi north mara t ulawaka 70
key features
•	 production of 259873 oz in 2010
•	 underground mine with a life of 25 years
•	 proven and probable reserves of 
11026000 oz
key features
•	 production of 186019 oz in 2010
•	 open pit mine with a 13year mine life
•	 proven and probable reserves of 
2892000 oz
key features
•	 production of 212947 oz in 2010
•	 open pit mine consisting of four open pits 
with a tenyear mine life
•	 proven and probable reserves of 
2836000 oz
key features
•	 production of 42094 oz in 2010
•	 completed open pit mine with 
underground access ramp
•	 proven and probable reserves of 67000 oz
key priorities for 2011
•	 accelerate underground production at 
upper east zone
•	 continue strong commitment to training 
with a focus on specialised skills
key priorities for 2011
•	 continue the development and training  
of the operation’s workforce
•	 continue the acceleration of stage  
two mining
key priorities for 2011
•	 complete feasibility study for  
north mara underground
•	 commission water treatment plant
key priorities for 2011
•	 open west pit extension to supplement 
production
•	 evaluate additional opportunities to further 
extend the mine life
pg
 more information on page 36
pg
 more information on page 38
pg
 more information on page 40
pg
 more information on page 42
exploration
approach priorities
at abg our strategy is to maintain a mix of 
projects at different stages in the exploration 
and development sequence w e hold one of the 
largest land packages in t anzania over highly 
prospective greenstones and around the major 
goldmining projects in the lake victoria 
greenstone belt w e are in a strong position to 
execute our strategy of increasing reserves and 
resources by focusing on exploration in and 
around our existing operations as well as on 
earlystage exploration programmes
our most recent exploration focus has been 
on realising value around our existing mines 
as well as identifying new opportunities 
in tanzania we believe that we are well 
positioned from our base in tanzania to 
expand our exploration programmes into 
other parts of africa
pg
 more information on page 44
lake victoria
north mara
tulawaka bulyanhulu
nyanzaga
golden ridge
buzwagi
tanzania 6
wwwafricanbarrickgoldcom
2001
10000
15000
20000
25000
30000
300000
400000
500000
600000
700000
800000
2002 2003 2004 2005 2006 2007 2008 2009 2010
group at a glance continued
defining milestones along our journey
over a tenyear period abg has become 
the largest gold producer in tanzania 
growing from no production in 2000 
to 700934 attributable ounces in 2010 
to date we have produced 53 million 
attributable ounces of gold since beginning 
operations in tanzania we are one of 
africa’s five largest gold producers 
future growth –  
where will it come from
greg hawkins ceo explains his priorities
one of my key priorities for 2011 is to 
ensure that we continue to build our 
pipeline of growth opportunities while 
we have a substantial platform of current 
production with a long mine life and 
attractive grade profile we are by no means 
complacent as to the importance of building 
significant events in world gold production
key
 attributable ounces produced
 total reserves  resources ’000
2001
commencement 
of production at 
bulyanhulu  
3 moz reserve
2002
north mara mine 
completed first 
gold poured
2003
placer dome purchases north mara
wholly owned subsidiary pangea 
purchases mineral rights at t ulawaka
2004
tulawaka 
open pit mine 
operations 
started
the bank 
of england 
announces that 
the gold on offer 
approximately 20 
tonnes or 643200 
ounces has been 
allotted in full at a 
price of us28000  
per ounce
us271oz
242000
16317
total mined output 
of gold was the lowest 
since 1997 and the 
first time since 1995 
that annual gold 
production has fallen 
us309oz
356000
15848
in 2003 tanzania reported 
a 20 increase in gold 
exports from us414 million 
to us504 million which 
accounted for more than 62 
of total export revenues
us363oz
314000
15923
supply and 
demand figures 
from the world 
gold council 
show 2004 world 
mine production 
down 44 to 
2478 tonnes
us409oz
350000
17939
average market gold price performance governance financial statements shareholder information
annual report and accounts 2010
7
2001
10000
15000
20000
25000
30000
300000
400000
500000
600000
700000
800000
2002 2003 2004 2005 2006 2007 2008 2009 2010
overview
group at a glance continued
defining milestones along our journey
future growth this is precisely why we have 
more than doubled our exploration budget 
for 2011 to us55 million this investment 
will help to advance our projects at tulawaka 
golden ridge north mara underground 
and bulyanhulu upper east zone which 
between them have the potential to 
substantially boost group production over 
the next 23 years in addition it will fund 
the next group of projects such as the 
nyanzaga project which can provide 
mediumterm growth while also enabling 
earlier stage generative work on our 
significant land package at the same time 
we continue to monitor potential  
acquisition targets and greenfield 
opportunities across africa to further  
expand our existing asset base 
2005
tulawaka 
commercial 
production 
commences
2006
acquisition of placer 
dome by barrick
buzwagi feasibility 
study completed
2007
development and 
construction of 
buzwagi mine 
commences
2008
underground 
mine development 
at tulawaka 
commences
2009
bulyanhulu total production 
reaches 27 moz
buzwagi mine completed 
first gold poured
2010
initial public offering 
of abg group
187 moz reserve and 
resource base at bulyanhulu
south africa’s gold 
production fell 
by 88 to 3427 
tonnes in 2004 the 
lowest since 1931
us444oz
649000
18737
global mine 
production cash costs 
rose by us45ounce 
or 17 yearonyear 
to us317ounce 
the increase in cash 
costs was roughly 
twice the size of those 
experienced in 2004 
and 2005
us603oz
796000
23016
china leads the 
world in gold 
mining output 
having upped its 
production in 2007 
by 12 over 2006 
producing 97 
million ounces
us695oz
605000
26421
the price of gold 
continues to fluctuate 
around the us800 
level its most recent 
low was us77390 
in midaugust its 
alltime high of 
us103080 was 
reached in march
us871oz
545000
26900
world gold 
production rose 
from 2260 tonnes in 
2008 to 2350 tonnes 
in 2009 an increase 
of 39
us972oz
716000
25481
on 9 november 
2010 gold 
closed at a new 
nominal high of 
us143100oz 
in nymex
us1225oz
701000
26870 8
wwwafricanbarrickgoldcom
enabled the directors to recommend a final dividend of us37 cents 
per ordinary share in addition to the interim dividend of us16 cents 
per share that we paid in september
throughout 2010 we have focused on continually improving 
productivity and efficiency at our existing operations while reviewing 
opportunities for new sources of value to enhance growth in this 
way we have sought to underpin the company’s longterm future and 
to deliver on our commitment to realise value for our shareholders 
as we move into 2011 our business strategy will remain to optimise 
expand and grow our ability to deliver on this strategy is based on 
the fundamental strengths described below
highquality asset base
in total over us2 billion has been invested in the current asset 
base of the company and we intend to maintain this commitment 
in the future this underpins the four operating mines our range of 
development projects 269 million ounces of reserves and resources 
and substantial land holdings for exploration
dear shareholders
it is a privilege to present abg’s first annual report as a listed company 
i am delighted to be able to serve as chairman of the new company 
as it establishes its own identity in the public markets abg has come 
to market at a time of unprecedented interest in the gold industry 
against a background of continuing global economic uncertainty 
we have set some challenging objectives for ourselves to grow the 
business over the mediumtolong term and i am convinced that we 
have the management team the asset base and the financial resources 
to deliver on these
our first year has not been without challenges all of which have been 
dealt with decisively by our management team with the full support 
of the board despite these our production for 2010 was still in excess 
of 700000 ounces which enabled us to deliver robust financial results 
for our shareholders our revenues were us975 million we had an 
operating cash flow of us345 million and net income of us218 
million with a net cash balance in excess of us400 million at the end 
of the year this provides us with the significant strategic flexibility we 
need as we look to grow the business in the coming years it has also 
chairman’s statement
a quality gold producer
recommended final dividend per share
us 37cents
our first year has not been without 
challenges all of which have been dealt 
with decisively by our management team 
with the full support of the board 
aaron regent annual report and accounts 2010
9
performance governance financial statements shareholder information overview
abg ethics
our core values are rooted in honesty integrity the highest ethical 
standards and a commitment to corporate responsibility as one of the 
largest foreign investors in tanzania we are determined to contribute 
not only to the national economy but also to the socioeconomic 
development of our host communities leaving a positive legacy 
for future generations we are committed to operating in a socially 
responsible way over the life cycle of our mines we recognise that 
fostering strong and mutually beneficial relationships with our host 
communities is critical if we are to secure a ‘social licence to operate’ 
and realise the social and economic opportunities it presents 
outlook
as we go into 2011 i remain optimistic about the prospects for our 
industry and i believe that abg is well positioned to continue to be one 
of the leading players within the african gold mining industry we must 
apply the lessons learned from the challenges we have already faced and 
overcome to deliver on the potential of our asset base and reward our 
shareholders for their loyalty throughout 2010 
the coming year will not be without its challenges but i am convinced 
that we have the elements in place to achieve our objectives finally 
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 regent chairman
operational expertise
in tanzania we have grown our business from zero production 
to over 700000 ounces through the acquisition development and 
operation of four highquality mines this experience provides a 
significant competitive advantage when assessing growth opportunities 
throughout africa
experienced leadership and management strength 
we are committed to maintaining the highest standards of corporate 
governance our board consists of some of the most respected figures in 
the mining industry it possesses the expertise knowledge experience 
and commitment necessary to help us achieve our business objectives 
collectively the board sets our standards values and strategic aims 
and reviews all material strategic issues financial performance risk 
management and critical business issues
furthermore at the time of our initial public offering and through 
subsequent additions of talent and expertise throughout the year 
we have put in place a management team with substantial industry 
experience – critically one with the capacity both to maximise the value 
of our existing assets and to deliver the growth we have targeted
growth potential
our existing mines offer a number of additional opportunities to 
grow their existing production levels coupled with other greenfield 
potential such as the nyanzaga project and our capability and appetite 
for acquisitions we have a range of growth options for the business
balance sheet
with a production platform successfully generating strong cash flows 
over us400 million of net cash and an unused us150 million credit 
facility we have significant balance sheet strength and the flexibility 
needed both to carry out our organic growth plans and to realistically 
assess acquisition opportunities
our supportive majority shareholder
we have access to industryleading expertise and a strong talent pool to 
augment our own resources through our relationship with our majority 
shareholder barrick we believe that this provides an important source 
of advantage over our competitors
as we go into 2011 i remain optimistic about the prospects for 
our industry and i believe that abg is well positioned to continue 
to be one of the leading players within it 10
wwwafricanbarrickgoldcom
the last 12 months have marked the beginning of a vibrant new chapter 
for our business for me personally and for many colleagues several 
months of preparations culminated in march with the creation of 
abg and our ipo turning what was formerly a regional business unit 
of barrick into a significant independent business today we have a 
mandate to build on our already substantial asset base and strengthen 
our position within the gold mining industry
our key focus over this past year has been to ensure that our assets are 
positioned to generate longterm consistent operating performance 
this has been evident in the achievements at bulyanhulu and north 
mara the mine life extension at tulawaka and our determined 
approach to overcoming the challenges at buzwagi this marks the 
approach abg will continue to take with the business to ensure that it 
can be run consistently and sustainably to manage business risks and 
to apply all of our available resources to deal with any challenges this 
underpins our strategy of building growth on a solid operating base and 
adding value for our shareholders
throughout the year we have maintained our absolute commitment 
to operating in a responsible manner in close cooperation with 
our host communities and to ensuring that we further embed the 
culture of health and safety in all our operations and activities it is 
deeply regrettable that we suffered four fatalities at our bulyanhulu 
mine during the year we must learn from these incidents and from 
the thorough investigations we subsequently carried out to reduce 
the possibility of any recurrence all our financial and operating 
achievements must be judged in the context of our overriding 
corporate goals of ensuring that everyone goes home safe and healthy 
every day and of making a positive contribution to the areas where we 
operate we made substantial progress in these goals in 2010 during 
which our mines all achieved one million work hours without lost time 
injuries this is highly encouraging but we are conscious that we must 
continue to maintain our focus on achieving constant improvement
operating and financial performance
with the positive performances at bulyanhulu and north mara as 
well as the contribution from tulawaka we finished the year with 
production of 700934 ounces of gold at a cash cost of us569 per 
ounce with the positive evolution in gold prices over 2010 we are 
pleased to report a robust operating cash flow of us345 million 
and a yearend net cash position of us401 million we were also 
successful in growing our overall resource base by 35 to 269 million 
ounces of which 63 are classified as reserves however despite these 
achievements the issues faced at buzwagi meant that we did not meet 
all of our 2010 targets as such resolving the issues at buzwagi was a 
top priority for our management team during much of 2010 with the 
objective of ensuring that the mine entered 2011 in a position to deliver 
on expectations 
this work included a number of senior management changes including 
the chief operating officer and the general manager at buzwagi as 
well as significant additional investment in mining and process plant 
equipment security infrastructure personnel hiring and training 
following the discovery of systematic fuel thefts at the site and a 
significant tightening of security measures we are confident that these 
initiatives have helped to put the mine back on a more stable footing
chief executive officer’s statement
a strong financial performance
the last 12 months have marked the 
beginning of a new chapter for our 
business today we have a mandate to 
build on our substantial asset base and 
strengthen our position within the gold 
mining industry
greg hawkins
record operating cash flow
 
us345 
million annual report and accounts 2010
11
performance governance financial statements shareholder information overview
driving efficiency and growth
we implemented a range of plans in 2010 to help drive further 
efficiency and growth in our business and we will continue to invest 
in these in 2011 we aim to reach one million ounces of production per 
year by 2014 representing growth of 40 from 2010 levels we plan 
to achieve this while also delivering costbase efficiencies these are 
fundamental pillars of our focus on creating shareholder value and we 
aim to deliver them by
•	 optimising our existing assets
•	 expanding through organic growth and
•	 growing through acquisitions in africa 
optimising our existing assets 
in order to ensure that our assets remain world class and continue to 
operate at maximum efficiency levels we continue to undertake a range 
of capital investment measures and efficiency programmes against a 
backdrop of cost pressures in the industry we believe that these will 
help us to continue to operate at or below the midpoint of the industry 
cost curve
in 2010 these activities included a significant upgrade of the ventilation 
system at bulyanhulu fleet expansion at buzwagi and t ulawaka and de
bottlenecking at our north mara process plant to increase throughput 
we also significantly streamlined our procurement and supply chain 
functions as well as reorganising our office in dar es salaam in 2011 
we have a capital expenditure budget of us140 million for sustaining 
and development capital us24 million for expansion projects and 
us73 million for waste stripping key capital investment projects 
include the water treatment facility at north mara the addition of 
pebble ports and backup generating capacity at our buzwagi process 
plant additional underground mining equipment for tulawaka and 
continued security investment 
expanding through organic growth
the optimisation projects for all four of our mine sites remain on track 
to deliver substantial and sustainable additional production within 
four years and we have made encouraging progress on these projects 
throughout 2010 
at bulyanhulu we are continuing to dewater and rehabilitate access to 
the upper east zone the feasibility study for this project is progressing 
and we expect to finalise it during the first half of 2011 
at north mara we have been encouraged by the drill results below the 
gokona and nyabigena pits where we released an initial highgrade 
resource of 370000 gold ounces during the fourth quarter of 2010 we 
are targeting expanding this to one million ounces through an intensive 
drill programme in 2011 and the feasibility study for this project is also 
on track to be completed during the first half of 2011 
as announced in our preliminary results we are extending the life of 
our tulawaka mine for the full year 2011 and into the second quarter of 
2012 we will continue our exploration drilling at the site with the aim 
of further increasing the life of mine if successful we anticipate this will 
be based solely on the underground operation through the addition of a 
second portal we expect to provide an update on this later in the year 
senior leadership team
kevin jennings
cfo
marco zolezzi 
coo
deodatus mwanyika
vice president
corporate affairs
peter spora 
vice president exploration
kobus van vuuren
head of human resources
katrina white
general counsel  
company secretary
andrew w ray
head of corporate  
development and  
investor relations
pg details of the executives are on page 72 12
wwwafricanbarrickgoldcom
more recently we were pleased to announce an initial mineral resource 
at our golden ridge project the initial resource consists of an indicated 
mineral resource of 527000 gold ounces with an average grade of 294 
grams of gold per tonne and an inferred mineral resource of 152000 
gold ounces with an average grade of 252 grams of gold per tonne 
we intend to conduct additional exploration work throughout 2011 at 
golden ridge in furtherance of these encouraging results and aim to 
complete the feasibility study for the project by mid 2011
we also made encouraging progress at the greenfield nyanzaga project 
in 2010 following completion of our acquisition of tusker gold 
notably with the discovery of mineralisation closer to surface as well 
as increasing grades at depth we are stepping up the drill programme 
in 2011 with the aim of initiating a scoping study later in the year 
elsewhere the main focus of our generative exploration work was in the 
north mara area along the gokona corridor with some exciting initial 
results that we will follow up on in 2011
in recognition of the critical importance of organic growth to our long
term ambitions we are increasing our total exploration budget in 2011 
to us55 million including us26 million of capitalised expenditure 
this represents a 103 increase on 2010 
in addition to our organic growth plans acquisitions to expand our 
footprint more broadly in africa remain an important part of our 
strategy we have undeniable strengths in this area with substantial 
capital flexibility gained through our cash holdings and credit facility 
a management structure that will enable us to acquire and develop 
businesses in other parts of africa and the operational expertise to add 
value to the assets we acquire w e analysed a number of targets during 
2010 and we continue to actively seek out opportunities 
strengthening our management team
we have continued to strengthen our management team over the 
course of the year employing and promoting individuals with a track 
record of leadership and the skill set and experience to help take our 
business forward 
in september we announced the appointment of marco zolezzi as 
our chief operating officer marco has significant expertise in running 
mines and bringing complex largescale projects through to full 
ramp up he has been of significant value as we continue to focus on 
delivering consistent performance at our operating mines and driving 
forward our organic growth projects 
w e also appointed boyd timler as general manager at buzwagi boyd 
has 28 years of mining experience and has been instrumental in defining 
and implementing the action plan used to address issues at the mine 
in 2010 t owards the end of the year we also appointed basie maree as 
general manager of t ulawaka basie brings substantial experience of the 
industry including a number of years with anglo american and will 
lead t ulawaka forward into a new stage of its development
with these and other appointments i am confident that we now 
have a management team in place with the necessary experience 
energy and enthusiasm to further develop the business and deliver 
on abg’s potential 
chief executive officer’s statement continued
outlook
as i have already mentioned 2010 was a year of significant achievement 
while we also faced a number of challenges that impacted production 
and cash cost targets however with the measures we have taken with 
the investments made and with the additional expertise we have added 
to our team we ended 2010 strongly and enter 2011 with an impressive 
platform on which to build 
we are aiming to develop the business further through the following 
key objectives for 2011
•	 achieving attributable group production between 700000 and 
760000 ounces
•	 maintaining cash cost of between us590 and us650 per ounce 
sold and direct cash operating costs of between us545 and us605 
per ounce sold
•	 increasing group throughput and recoveries
•	 completing feasibility studies at our brownfield projects
•	 achieving growth in our overall resource base
•	 improving further on our safety record and
•	 continuing our focus on opportunities for strategic acquisitions 
to expand our footprint throughout africa
finally i would like to thank all of my colleagues for their commitment 
enthusiasm and hard work throughout what has been an extraordinary 
year in the development of our business i would also like to thank 
our board for their unwavering support their wise counsel and their 
commitment throughout the year 
greg hawkins chief executive officer annual report and accounts 2010
13
performance governance financial statements shareholder information overview
in 2010 the global economic recovery continued 
at a slow and uneven pace while growth in 
emerging economies led by china was generally 
strong growth in the largest developed economies 
including the united states the eurozone and japan 
was muted and held back by fiscal deficits sovereign 
debt concerns and high unemployment global 
monetary conditions remain historically loose and 
the recovery process is expected to continue at a 
sluggish rate with downside risks predicated mainly 
on concerns of sovereign defaults and subsequent 
tightening of credit conditions 
during the year the gold price showed an upward 
trend the us dollar generally declined against 
other global currencies primarily as a result of low 
us dollar interest rates continued allocation by 
investors into riskier assets and concerns about  
the level of us government borrowings and 
deficits gold has historically been inversely 
correlated to the us dollar and that trend 
continued in 2010 with gold prices trading up to 
alltime highs in a number of major currencies
gold
the market price of gold is the most significant factor in determining 
the earnings and cash flowgenerating capacity of abg’s operations 
the price of gold is subject to volatile price movements over short 
periods of time and is affected by numerous industry and macro
economic factors that are beyond our control gold price volatility 
remained high in 2010 with the price ranging from us1045 to 
us1431 per ounce during the year the average market price for the 
year of us1225 per ounce was an alltime high 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 as a result of the global 
easing of monetary policy as well as large fiscal deficits incurred in the 
us and other major developed economies we believe that there is a 
possibility that both inflation and us dollar depreciation could emerge 
in the coming years gold is viewed as a hedge against inflation and has 
historically been inversely correlated to the us dollar therefore higher 
inflation andor depreciation in the us dollar should be positive for the 
price of gold as a result we believe the longterm upward trend in gold 
prices will continue 
throughout 2010 we continued to see increased interest in holding 
gold as an investment this was evidenced by the increased volumes 
held by exchange traded funds etfs and global exchanges as well 
as the worldwide demand for physical gold in forms such as bars 
and coins as investors seek a safe haven against the uncertain global 
economic outlook
we believe that the outlook for global gold mine production will be 
one of declining supply in the years to come while modest increases 
in production have occurred in recent years primarily as a result of 
the increase in gold prices we expect a decline over the long term 
the primary drivers for the global decline are a trend of lowergrade 
production by many producers increasing time requirements and 
impediments in bringing projects – especially largescale projects – 
to the production stage a lack of global exploration success in recent 
years and a scarcity of new promising regions for gold exploration 
and production a decrease in global industry production raises the 
potential for a higher sustainable longterm gold price
gold sales from the official sector under the central bank gold 
agreement cbga also have a significant impact on gold prices 
sales for the year ended september 2010 were less than 2 of the 
fullyear quota of 400 tonnes excluding sales from the international 
monetary fund imf we are now in the second year of the current 
cbga which runs to september 2014 and allows for the sale of up 
to 400 tonnes per year in 2010 the imf completed their previously 
announced sale of 403 tonnes of gold with no future sales anticipated 
at this time net official sector sales have been declining in recent 
years and in fact central banks were net buyers of gold in 2010
the reserve gold holdings of emerging market countries such as the 
bric countries brazil russia india and china are significantly 
lower than the reserve holdings of more developed countries the 
central banks of these developing economies hold a significant 
portion of their reserves in us dollars as they identify a need to 
diversify their portfolio and reduce their exposure to the us dollar we 
believe that gold will be one of the main benefactors in conjunction 
with the belowquota selling of gold under the cbga which is 
expected to continue in the current year of the agreement the net 
purchases of gold by global central banks provide a strong indication 
that gold is viewed as a reserve asset and a defacto currency
market review
the context for our operations 14
wwwafricanbarrickgoldcom
currency exchange rates
a portion of the company’ s costs are incurred in currencies other than  
us dollars the exposure relating to other currencies is approximately 
25 of the company’ s total operating expenditure of which the main 
contributing currencies are the t anzanian shilling and the south african 
rand the company has not entered into any longterm currency hedging 
but it may consider hedging currencies at times when the opportunity 
exists to protect itself against significant currency movements
throughout the year the rand strengthened versus the us dollar 
it traded between r663 and r796 and averaged r732 per us dollar 
its strength was primarily driven by us dollar weakness as well as 
strong precious metals prices and investors purchasing riskier assets
in 2010 the tanzanian shilling weakened versus the us dollar it 
traded between tsh1333 and tsh1525 and averaged tsh1442 per 
us dollar its weakness was due to increased government borrowing 
used to finance the large growth in government debt and a current 
account deficit
market review continued
copper
copper prices generally rose throughout 2010 particularly in the 
second half as london metals exchange lme copper prices traded 
in a wide range of us274 to us442 per pound they averaged 
us342 per pound and closed the year at an alltime high of us442 
per pound copper’s rise to alltime highs occurred mainly as a result 
of factors including strong demand from emerging markets especially 
china decreasing exchange stockpiles and increasing investor interest 
in base metals with strong forwardlooking supplydemand outlooks 
copper prices should continue to be positively influenced by factors like 
demand from asia global economic growth the limited availability of 
scrap metal and production levels of mines and smelters in the future
utilising option collar strategies we have put in place floor protection 
on approximately 60 and 45 of our expected copper production for 
2011 and 2012 respectively at an average floor price of us325 per 
pound and an average ceiling price of us477 per pound
industry gold production
millions of ounces
95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10e
65
70
75
80
85
90
source gfms
ocial sector gold sales
tonnes
05 06 07 08 09 10
source world gold council and gfms
ocial gold holdings
as at 31 december
 of reserves
source world gold council
1 2 3 4 5 6 7 8 9
1 usa
2 germany
3 italy
4 france
5 switzerland
6 india
7 russia
8 china
9 brazil 
average monthly spot copper prices
dollars per pound
2008 2009 2010
15
20
25
30
35
40
45 annual report and accounts 2010
15
performance governance financial statements shareholder information overview
us dollar interest rates 
beginning in 2008 in response to the contraction of global credit 
markets and in an effort to spur economic activity and avoid 
potential deflation the us federal reserve reduced its benchmark 
rate to between 0 and 025 the benchmark was kept at this level 
throughout 2010 we expect that shortterm rates will remain at 
low levels through 2011 and into 2012 with the us federal reserve 
continuing to use monetary policy initiatives in an effort to keep long
term interest rates low we expect such initiatives to be followed by 
incremental increases to shortterm rates once economic conditions 
and credit markets normalise
at present our interestrate exposure mainly relates to interest 
receipts on our cash balances us401 million at the end of the year 
fuel
during 2010 oil prices traded between us63 and us92 per barrel 
they averaged us80 per barrel and closed the year at us91 per barrel 
as the global economy returned to growth
we consume on average approximately 60 million litres of diesel fuel 
annually across all our mines diesel fuel is refined from crude oil 
and is therefore subject to the same price volatility affecting crude oil 
prices volatility in crude prices has a direct and indirect impact on 
our production costs based on current consumption figures at our 
operations we estimate that an increase of us10 per barrel of crude 
oil would result in an approximate increase of us5us6 in cash costs 
per ounce of gold sold although the company has no dieselprice 
hedging positions it may consider hedging its dieselprice exposure to 
protect against adverse cost impacts that come with significant increases 
in diesel prices we will look at opportunities to hedge the exposure in 
the future
south african rand
rand per usd
jan feb mar apr may jun jul aug sep oct nov dec
65
70
75
80
85
t anzanian shilling
shillings per usd
jan feb mar apr may jun jul aug sep oct nov dec
1250
1300
1350
1400
1450
1500
1550
average monthly spot gold prices vs dxy index
2008 2009 2010
average spot price dxy index
550
650
750
850
950
1050
1150
1250
1350
1450
55
60
65
70
75
80
85
90
gold etf holdings
1
as at 31 december
millions of ounces
05 06 07 08 09 10
1  includes the holdings of gbs asx gbs lse newgold jse gld nyse iau amex zkb swiss etfs london xetra dax
 julius baer swx etfs nyse csxmtchsix ubsis usd 16
wwwafricanbarrickgoldcom
at 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 above all else we are committed to being a 
responsible member of the communities where we operate and 
determined to contribute not only to the national economy but  
also to the socioeconomic development and wellbeing of our  
host communities
we aim to achieve this through continually optimising and re
sequencing 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 
we aim 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
our strategy
delivering our full potential
1100
koz
1000
800
600
900
700
2009
short – 
medium term
tulawaka extension
golden ridge
north mara underground
bulyanhulu upper east zone
nyanzaga
2010 2011 2012 2013 2014

lom production base
organic growth
ma and jvs
increasing production to achieve one million ounces by 2014
the main focus of abg’s strategy is to increase our production levels 
to one million ounces of gold per year by 2014 annual report and accounts 2010
17
performance governance financial statements shareholder information overview
strategic priorities
optimise
the existing asset base
expand
through near mine projects
grow
through greenfield opportunities 
and acquisitions in africa
we aim to increase 
production across our existing 
assets through operational 
improvements such as
we pursue organic  
growth opportunities 
to expand our existing 
resources such as
w e are committed to growing 
our operations in t anzania 
and transforming our business 
into a truly panafrican player 
within our industry through
•	 moving to electricity supplied 
by the tanzanian national 
grid and away from inhouse 
power generation
•	 increasing training and 
development of our workforce 
with the introduction of additional 
training facilities such as the 
bulyanhulu underground  
training centre
•	 stabilising operations at buzwagi 
to achieve consistency in costs 
and production
•	 developing underground 
operations at the gokona and 
nyabigena pits following high
grade success at north mara
•	 extending the mine life  
at tulawaka through the 
underground extension in  
the east zone
•	 accelerating production at the 
bulyanhulu upper east zone
•	 more than 50000 metres of 
resource definition and exploration 
drilling across nyanzaga in 2011
•	 prospecting for future growth 
along the gokona corridor 
and at the golden ridge and 
nyanzaga projects
•	 leveraging opportunities  
which exist within the african  
gold mining industry
pg
 more information on pages 18 – 21
pg
 more information on pages 22 – 25
pg
 more information on pages 26 – 29
performance governance financial statements shareholder information
18 wwwafricanbarrickgoldcom annual report and accounts 2010 19
overview
optimise
a move away from inhouse power generation
the north mara gridconnection project
in late october 2006 the north mara 
gold mine entered into a memorandum of 
understanding with the tanzania national 
power utility tanesco to examine the 
feasibility of connecting to the tanesco 
electricity grid until then the mine had  
been supplied by diesel generators the 
project scope involved the installation  
of 88 kilometres of 132kv overhead power 
line from the musoma substation to the 
town of nyamongo the construction 
of a new substation at nyamongo and 
modifications to the musoma and bunda 
substations this also included any voltage 
support compensation required and was 
called the ‘grid connection project’ 
abg and tanesco completed a 
national grid network study to finalise 
the requirements for the voltage support 
compensation to support the network 
a number of static variable compensators 
were relocated and capacitor banks 
upgraded in what was known as the  
‘grid stability project’ 
the final costs were in the order of  
us40 million for the two projects
the project ran from january 2008 to 
september 2009 following commission 
further modifications were made to 
address powerquality and gridstability 
issues these allow essential equipment 
to run on diesel generators until the grid 
power stabilises with around 4mw of the 
12mw on this ‘spinning’ power 
in 2010 the mine benefited significantly 
from the project’s outcome thanks to its 
reduced reliance on more expensive diesel
generated power
the main plant at north mara 
illuminated at night powered with 
electricity from the national grid
us40 m
capital investment
performance governance financial statements shareholder information
22 wwwafricanbarrickgoldcom annual report and accounts 2010 23
overview
north mara underground
abg is currently investigating the 
potential for starting an underground 
mine at north mara to access a resource 
that is currently outside the final planned 
limits of the open pits this would also 
allow for simultaneous underground and 
open pit mining for a period of time which 
would both add to our production profile 
and increase the life of the mine 
initial investigations into possible 
resourceexpansion at gokona have shown 
positive results in december 2010 we 
announced an initial mineral resource 
at the project indicating the potential 
to develop a substantial underground 
operation at the gokona and nyabigena 
deposits with an attractive grade profile 
we are continuing deep drilling in 
order to identify further highgrade 
gold mineralisation with the objective 
of locating an underground resource of 
up to one million ounces we are also 
undertaking studies into suitable mining 
methods potential operating and capital 
costs infrastructure and risk analysis 
assessments to assess the overall feasibility 
for this resource expansion we expect  
to complete this phase of the study in 
mid2011
the initial resource announcement and 
ongoing project reviews confirm the 
encouraging progress abg has made on 
assessing the upside potential of north 
mara it is a testament to our strategy of 
realising the additional potential of our 
existing portfolio of highquality assets
y ou can find further information on  
north mara underground on page 45
drill rigs working on expanding the 
north mara underground resource
expand
realising the potential of our existing assets
1 moz
total targeted underground  
resource
performance governance financial statements shareholder information
28 wwwafricanbarrickgoldcom annual report and accounts 2010 29
overview
nyanzaga
the acquisition of tusker gold in the 
first half of 2010 resulted in abg gaining 
100 control of the nyanzaga project 
which hosts the tusker and kilimani 
gold deposits as well as several other 
exploration targets the nyanzaga project 
covers some 353 square kilometres of 
prospective archaean greenstone geology 
and lies approximately 35 kilometres 
north east of abg’s bulyanhulu gold 
mine previous resource estimates by 
tusker gold and sub sahara resources 
nl reported inferred resources of 
approximately four million ounces for 
tusker and kilimani projects although 
abg has so far only recognised a 
resource of 963000 ounces the 
tusker and kilimani gold deposits and 
the surrounding exploration targets 
together represent an opportunity to add 
significantly to the company’s resource
base with the potential to contribute 
substantially to annual production in the 
medium to long term
the company is presently continuing 
stepout and infill resource drilling on 
the tusker and kilimani deposits along 
with scout exploration drill programmes 
across various geophysical and 
geochemical targets within the project 
in late 2010 our drilling on the tusker 
resource area identified additional near
surface mineralisation on the northern 
end of the resource and new zones of 
broad highergrade mineralisation 
on the southern end of the resource 
these intercepts indicate the potential 
to identify broad highergrade zones 
within the very large tusker gold deposit 
and the current drill programmes are 
specifically aimed at extending these 
newlyidentified zones 
the company plans to drill more than 
50000 metres of resource definition and 
exploration drilling across the nyanzaga 
property in 2011 these drill programmes 
are focused on identifying additional 
gold deposits and satellite ore sources 
that could enhance the economics of any 
operation established on the nyanzaga 
project we also aim to initiate a scoping 
study later in 2011 as we gain a greater 
understanding of the mineralisation in 
this area
view from tusker hill southwest 
across the nyanzaga property
grow
growing our resource base
52000
metres of drilling planned for 2011 18
wwwafricanbarrickgoldcom
optimise
a move away from inhouse
the north mara gridconnection project
in late october 2006 the north mara 
gold mine entered into a memorandum of 
understanding with the tanzania national 
power utility tanesco to examine the 
feasibility of connecting to the tanesco 
electricity grid until then the mine had  
been supplied by diesel generators the 
project scope involved the installation  
of 88 kilometres of 132kv overhead power 
line from the musoma substation to the 
town of nyamongo the construction 
of a new substation at nyamongo and 
modifications to the musoma and bunda 
substations this also included any voltage 
support compensation required and was 
called the ‘grid connection project’ 
abg and tanesco completed a 
national grid network study to finalise 
the requirements for the voltage support 
compensation to support the network 
a number of static variable compensators 
were relocated and capacitor banks 
upgraded in what was known as the  
‘grid stability project’ 
the final costs were in the order of  
us40 million for the two projects
the project ran from january 2008 to 
september 2009 following commission 
further modifications were made to 
address powerquality and gridstability 
issues these allow essential equipment 
to run on diesel generators until the grid 
power stabilises with around 4mw of the 
12mw on this ‘spinning’ power 
in 2010 the mine benefited significantly 
from the project’s outcome thanks to its 
reduced reliance on more expensive diesel
generated power
us40
m
capital investment performance governance financial statements shareholder information
annual report and accounts 2010
19
overview
power generation
the main plant at north mara 
illuminated at night powered with 
electricity from the national grid 20
wwwafricanbarrickgoldcom
the bulyanhulu underground  
training centre
as the bulyanhulu mine makes progress 
towards growing production using the 
conventional cutandfill mining method 
there is an increased need to train large 
numbers of miners abg carried out an 
onsite gap assessment to highlight our 
training needs and to ensure we have 
the capacity to meet the demand to 
meet this challenge the mining team 
has recruited a number of highly skilled 
trainers from one of south africa’s 
leading mine training schools and has 
converted the minedout 4700 level into 
an underground mining school 
the space contains a number of areas to 
hold formal classroom lectures as well as 
practical areas where employees can learn 
basic skills such as pipefitting inspecting 
vehicles and rigging they can then 
progress to more demanding training on 
subjects such as jack legs and winches 
all training can be carried out in a genuine 
underground environment without the 
added pressure of being in a production 
area this makes the training highly 
effective and gives people who are  
new to mining the opportunity to start 
their career by learning in a safe and 
controlled environment
the next phase is to start a lowpriority 
‘production’ heading where students can 
experience actual working conditions 
without the added pressure of a fully 
fledged production environment we 
are also currently carrying out a gap 
assessment on all underground employees 
who will be undergoing training at the 
centre to ensure we have the skills required 
to make the mine a success in the longer 
term we envisage that the centre will also 
provide training for employees from other 
abg underground operations
optimise
creating capacity to meet 
2210
new and existing employees 
trained during 2010 performance governance financial statements shareholder information
annual report and accounts 2010
21
overview
training underway at the bulyanhulu 
underground training centre
our demand 22
wwwafricanbarrickgoldcom
north mara underground
abg is currently investigating the 
potential for starting an underground 
mine at north mara to access a resource 
that is currently outside the final planned 
limits of the open pits this would also 
allow for simultaneous underground and 
open pit mining for a period of time which 
would both add to our production profile 
and increase the life of the mine 
initial investigations into possible resource 
expansion at gokona have shown positive 
results in december 2010 we announced 
an initial mineral resource at the project 
indicating the potential to develop a 
substantial underground operation at the 
gokona and nyabigena deposits with an 
attractive grade profile 
we are continuing deep drilling in 
order to identify further highgrade 
gold mineralisation with the objective 
of locating an underground resource of 
up to one million ounces we are also 
undertaking studies into suitable mining 
methods potential operating and capital 
costs infrastructure and risk analysis 
assessments to assess the overall feasibility 
for this resource expansion we expect  
to complete this phase of the study in 
mid2011
the initial resource announcement and 
ongoing project reviews confirm the 
encouraging progress abg has made on 
assessing the upside potential of north 
mara it is a testament to our strategy of 
realising the additional potential of our 
existing portfolio of highquality assets
y ou can find further information on  
north mara underground on page 45
expand
realising the potential of our
1moz
total targeted underground  
resource performance governance financial statements shareholder information
annual report and accounts 2010
23
overview
drill rigs working on expanding the 
north mara underground resource
existing assets 24
wwwafricanbarrickgoldcom
tulawaka extension
tulawaka commenced open pit operations 
in 2005 with a declared reserve of 546000 
ounces it had produced 808000 ounces 
up until the end of december 2010
in 2009 open pit mining ceased and 
underground mining commenced 
exploiting the deeper extent of the ore 
body while supplementing production 
with surface stockpiles operations 
were due to cease in 2011 however 
underground resource delineation 
drilling has resulted in an initial mine life 
extension into the second quarter of 2012 
we will further explore opportunities 
during 2011 to build on this initial mine 
life extension 
in addition to underground extensions 
drilling programmes have indicated the 
potential to recommence open pit mining 
from the west pit extension something 
which had not been economically viable 
in the past because this would be an 
extension of historic open pit mining no 
additional permitting would be required 
abg is currently examining the overall 
viability of this opportunity
we provide further information on the 
tulawaka extension on page 46
expand
extending our mine life
2012
initial mine life extension performance governance financial statements shareholder information
annual report and accounts 2010
25
overview
from open pit to underground – the 
portal at tulawaka leading to further 
underground mining opportunities 26
wwwafricanbarrickgoldcom
the gokona corridor
a group of 57 prospecting licences 
surround the north mara operation 
encompassing approximately 691 square 
kilometres of highly prospective archaean 
geology abg controls the majority of 
this prospective greenstone belt with 
most licences owned 100 by members 
of the group currently the top priority 
target in the region is the 15 kilometre 
long gokona corridor that straddles the 
gokona and nyabigena gold deposits and 
which is interpreted to extend some five to 
six kilometres to the north west and nine 
to ten kilometres to the south east of the 
open pits other targets in the north mara 
project include the komarera trend four 
kilometres south east of the nyabirama 
open pit and more regionally the dett 
and surubu prospects some 45 kilometres 
west of the north mara operation
abg believes that the north mara 
district particularly the gokona 
corridor is one of the most highly 
prospective exploration areas in its 
current portfolio and that the region 
could eventually add significantly to 
the existing north mara resource base 
the company has plans to expand the 
2010 reverse circulation scout drilling 
programme on the gokona corridor and 
infill reverse circulation and diamond 
core drilling by july 2011 
to date reverse circulation scout drilling 
has identified favourable rock types 
alteration and some gold anomalism in 
limited drilling this is very encouraging 
for what has initially been a broadspaced 
reconnaissance programme drilling in 
2011 will continue to target extensions 
to the existing gokonanyabigena 
mineralised system with the objective 
of locating new highgrade gold deposits 
within trucking distance of the north 
mara plant these programmes will run in 
conjunction with the programme being 
undertaken by north mara mine to add 
and convert resources in the gokona and 
nyabigena underground areas
grow
prospecting for future growth
12000
 metres of drilling planned  
for 2011 performance governance financial statements shareholder information
annual report and accounts 2010
27
overview
a highly prospective area the objective 
is to discover further open pit and 
underground potential 28
wwwafricanbarrickgoldcom
nyanzaga
the acquisition of tusker gold in the 
first half of 2010 resulted in abg gaining 
100 control of the nyanzaga project 
which hosts the tusker and kilimani 
gold deposits as well as several other 
exploration targets the nyanzaga project 
covers some 353 square kilometres of 
prospective archaean greenstone geology 
and lies approximately 35 kilometres 
north east of abg’s bulyanhulu gold 
mine previous resource estimates by 
tusker gold and sub sahara resources 
nl reported inferred resources of 
approximately four million ounces for 
tusker and kilimani projects although 
abg has so far only recognised a 
resource of 963000 ounces the 
tusker and kilimani gold deposits and 
the surrounding exploration targets 
together represent an opportunity to add 
significantly to the company’s resource 
base with the potential to contribute 
substantially to annual production in the 
medium to long term
the company is presently continuing 
stepout and infill resource drilling on 
the tusker and kilimani deposits along 
with scout exploration drill programmes 
across various geophysical and 
geochemical targets within the project 
in late 2010 our drilling on the tusker 
resource area identified additional near
surface mineralisation on the northern 
end of the resource and new zones of 
broad highergrade mineralisation 
on the southern end of the resource 
these intercepts indicate the potential 
to identify broad highergrade zones 
within the very large tusker gold deposit 
and the current drill programmes are 
specifically aimed at extending these 
newlyidentified zones 
the company plans to drill more than 
50000 metres of resource definition and 
exploration drilling across the nyanzaga 
property in 2011 these drill programmes 
are focused on identifying additional 
gold deposits and satellite ore sources 
that could enhance the economics of any 
operation established on the nyanzaga 
project we also aim to initiate a scoping 
study later in 2011 as we gain a greater 
understanding of the mineralisation in 
this area
grow
growing our resource base
52000
metres of drilling planned for 2011 performance governance financial statements shareholder information
annual report and accounts 2010
29
overview
view from tusker hill south west 
across the nyanzaga property 30
wwwafricanbarrickgoldcom
risk management
effective risk management is imperative both to drive the success of 
abg’s strategy and vision and to protect our values for this reason we 
have adopted a comprehensive risk management framework to address 
risk tolerance and control based on international standards applicable 
governance requirements and the ethics that underpin our code of 
conduct all members of the abg group our material operations 
support functions processes and procedures must comply with and 
adhere to our risk management controls and procedures 
pg
 we give further details of our approach to risk management in the  
risk management section of this report on page 64
board effectiveness and strength
abg requires strong and effective leadership to achieve its business 
objectives for this reason all our directors have considerable 
experience in the mining industry sharing a collective spectrum of 
expertise that spans finance and accounting regional operational 
experience geology and engineering
our board is responsible for the overall management of abg and its 
business it sets our standards values and strategic aims and ensures 
that we have the resources in place to meet our objectives supported by 
the senior leadership team the board monitors and reviews material 
strategic issues financial performance risk management and critical 
business issues 
pg
 y ou can find details of each of our directors on pages 7071 and we 
provide details of our governance structure in the corporate governance 
report contained in this report 
the way we work
committed to excellence
organisational structure
e board acts as overall guardian 
of abg’ s business and its strategy  
specic review and oversight 
functions are delegated to 
committees of the board in line 
with applicable governance 
standards and requirements 
daytoday management of the 
business lies with the senior 
leadership t eam who work with 
the general managers of each mine 
to progress operations   
e board
audit
committee
senior leadership
team
general
managers
ehss
committee
nomination
committee
compensation
committee
at the time of our ipo we made commitments to excellence and to establish strong and 
effective leadership we believe this approach makes sound business sense as well as being 
crucial for risk and opportunity management annual report and accounts 2010
31
performance governance financial statements shareholder information overview
strategic shareholder support
before our ipo in march 2010 abg was a wholly owned subsidiary of 
barrick barrick continues to hold approximately 74 of abg’s shares 
making it our majority shareholder as a result of this close relationship 
we continue to benefit from having access to the barrick group for 
a number of support and technical services we also receive strong 
shareholder support for our initiatives while retaining autonomy and 
independence as a public company in the operation of our business 
pg
 further details of our relationship with barrick are on page 76
responsible mining
as one of tanzania’s largest investors we strive to be a responsible 
member of the communities in which we operate and are determined 
to contribute not only to the national economy but also to the socio
economic development of our host communities as such we are 
committed to creating a positive and sustainable legacy in tanzania by 
operating in a socially responsible way over the life cycle of our mines 
and by ensuring that our employees and local communities can share in 
the benefits of our mining activities we have been engaged in a number 
of initiatives that reflect this vision with the local communities around 
our mines these can be broadly broken down into the following 
categories community development stakeholder engagement and 
local procurement and employment 
our values
abg’s conduct is guided by the highest standards of honesty and 
integrity founded on our code of conduct that embodies our 
commitment to conducting our business in accordance with all 
applicable laws rules regulations and the highest ethical standards 
we have also adopted a number of core values which underline our 
vision and commitment to stakeholders
our values
behave like an owner 
we accept accountability for our actions and results we are 
entrepreneurial and look for opportunities to grow our business 
we act with integrity – operating within the letter and spirit of 
the law and abg’s code of conduct 
be a team player 
we work safely at all times we respect our colleagues and 
those we interact with outside our organisation we listen 
to others for understanding and we ask for help we build 
trust and we celebrate our successes we help others improve 
their effectiveness we promote confidence and trust in one 
another’s capabilities 
continually improve 
we are always committed to improvement we build on good 
ideas we learn from our mistakes and we challenge the status 
quo we think outside the box and have a desire to succeed and 
add value to our work 
act with a sense of urgency 
we are decisive take the initiative and make tough decisions 
when necessary we set priorities and act on them 
deliver results 
we have a clear vision of where we are going and of our plan 
to get there we focus our resources to achieve our objectives 
we pay attention to detail and keep our commitments we 
deliver results  32
wwwafricanbarrickgoldcom
financial kpis operational kpis nonfinancial kpi
data
ebitda
2
us’000
07 08 09 10
us419167 
earnings per share
3
usshare
07 08 09 10
us532 centsshare
operating cash ow 
per share
23
usshare
07 08 09 10
us842 centsshare 
cash cost per ounce 
sold
2
usoz
07 08 09 10
us569oz 
cash cost per tonne
milled
2
ustonne
07 08 09 10
us55tonne
 attributable 
production
5
oz
07 08 09 10
700934 oz
t otal reserves and 
resources per share
oz1000 shares
07 08 09 10
655 oz1000 shares
lost time injury 
frequency rate
frequency rate
07 08 09 10
008
data
definition 
full definition 
for nonifrs 
measures are 
provided on 
page 54
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
earnings per share eps 
is calculated as the net 
profit attributable to equity 
shareholders divided by 
the weighted average of the 
number of ordinary shares 
in issue 
operating cash flow per 
share is the cash generated 
from or utilised in operating 
activities divided by the 
weighted average of the 
number of ordinary shares 
in issue
cash cost per ounce sold 
is calculated by dividing the 
aggregate of cash costs by 
attributed gold ounces sold 
cash cost per tonne 
milled is calculated by 
dividing the aggregate  
of these 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 appreciation
depreciation and 
dividends received 
attributable production is 
the aggregate of the group’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 ltifr is measured as 
the number of lost time claims 
per million hours worked
definition
full definition 
for nonifrs 
measures are 
provided on 
page 54
performance  
in 2010
ebitda totalled  
us419 million in 2010  
an increase of 68 on 2009  
as a result of improved  
gold prices increased gold 
ounces sold and record  
coproduct revenue
4
 
earnings per share amounted 
to us532 cents for 2010 an 
increase of 272 on 2009 the 
increase was driven by net 
profit for the year
operating cash flow per 
share was us842 cents a 78 
increase on 2009 as a result of 
improved revenue 
cash cost per ounce sold was 
us569 per ounce for 2010 
a 7 increase on 2009 the 
increase was primarily due 
to increased costs incurred 
at buzwagi when compared 
to lowerthanexpected 
production levels at the mine
cash cost per tonne 
milled was us55 
per tonne for 2010 
slightly lower than 2009 
primarily as a result of 
the overall incremental 
increase in tonnes milled 
from open pit operations 
t otal shareholder return  
was 64 for the year this 
measure was driven by the 
change in abg share price 
since the ipo as this is the 
first year of abg’s existence as 
a listed company no prior year 
comparator is shown
attributable production for 
the year was 700934 ounces 
2 lower than 2009 primarily 
due to production challenges 
at buzwagi 
t otal reserves and 
resources per share equalled 
655 oz1000 shares 
lost time injury frequency 
rate indicates that significant 
milestones were achieved 
in 2010 with each of our 
mines hitting one million 
working hours without lost 
time injuries 
performance  
in 2010
relevance 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
earnings per share serves 
as an indicator of abg’s 
profitability and is a primary 
indicator in determining share 
price and value 
operating cash flow per 
share helps to measure abg’s 
ability to generate cash from 
its business 
cash 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
cash 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
attributable 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 helps us to measure the 
effectiveness of our health and 
safety initiatives and controls 
across our operations 
relevance
key performance indicators
measuring our performance
we assess the performance of our business against a number of kpis on a continuous basis 
the use of kpis in this way allows us to monitor and measure progress made in realising 
and implementing our strategy
1
creating a track record
kevin jennings cfo gives a perspective  
on how it will be created
1 historically and prior to our initial public offering the operations of the abg group 
comprised the tanzanian gold mining business of barrick 
2 cash costs per ounce sold ebitda operating cash flow per share and cash costs per tonne 
milled are nonifrs financial performance measures with no standard meaning under 
ifrs refer to “nonifrs measures” on page 54 for the full definitions of each measure overview governance financial statements shareholder information
annual report and accounts 2010
33
financial kpis operational kpis nonfinancial kpi
data
ebitda
2
us’000
07 08 09 10
us419167 
earnings per share
3
usshare
07 08 09 10
us532 centsshare
operating cash ow 
per share
23
usshare
07 08 09 10
us842 centsshare 
cash cost per ounce 
sold
2
usoz
07 08 09 10
us569oz 
cash cost per tonne
milled
2
ustonne
07 08 09 10
us55tonne
 attributable 
production
5
oz
07 08 09 10
700934 oz
t otal reserves and 
resources per share
oz1000 shares
07 08 09 10
655 oz1000 shares
lost time injury 
frequency rate
frequency rate
07 08 09 10
008
data
definition 
full definition 
for nonifrs 
measures are 
provided on 
page 54
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
earnings per share eps 
is calculated as the net 
profit attributable to equity 
shareholders divided by 
the weighted average of the 
number of ordinary shares 
in issue 
operating cash flow per 
share is the cash generated 
from or utilised in operating 
activities divided by the 
weighted average of the 
number of ordinary shares 
in issue
cash cost per ounce sold 
is calculated by dividing the 
aggregate of cash costs by 
attributed gold ounces sold 
cash cost per tonne 
milled is calculated by 
dividing the aggregate  
of these 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 appreciation
depreciation and 
dividends received 
attributable production is 
the aggregate of the group’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 ltifr is measured as 
the number of lost time claims 
per million hours worked
definition
full definition 
for nonifrs 
measures are 
provided on 
page 54
performance  
in 2010
ebitda totalled  
us419 million in 2010  
an increase of 68 on 2009  
as a result of improved  
gold prices increased gold 
ounces sold and record  
coproduct revenue
4
 
earnings per share amounted 
to us532 cents for 2010 an 
increase of 272 on 2009 the 
increase was driven by net 
profit for the year
operating cash flow per 
share was us842 cents a 78 
increase on 2009 as a result of 
improved revenue 
cash cost per ounce sold was 
us569 per ounce for 2010 
a 7 increase on 2009 the 
increase was primarily due 
to increased costs incurred 
at buzwagi when compared 
to lowerthanexpected 
production levels at the mine
cash cost per tonne 
milled was us55 
per tonne for 2010 
slightly lower than 2009 
primarily as a result of 
the overall incremental 
increase in tonnes milled 
from open pit operations 
t otal shareholder return  
was 64 for the year this 
measure was driven by the 
change in abg share price 
since the ipo as this is the 
first year of abg’s existence as 
a listed company no prior year 
comparator is shown
attributable production for 
the year was 700934 ounces 
2 lower than 2009 primarily 
due to production challenges 
at buzwagi 
t otal reserves and 
resources per share equalled 
655 oz1000 shares 
lost time injury frequency 
rate indicates that significant 
milestones were achieved 
in 2010 with each of our 
mines hitting one million 
working hours without lost 
time injuries 
performance  
in 2010
relevance 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
earnings per share serves 
as an indicator of abg’s 
profitability and is a primary 
indicator in determining share 
price and value 
operating cash flow per 
share helps to measure abg’s 
ability to generate cash from 
its business 
cash 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
cash 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
attributable 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 helps us to measure the 
effectiveness of our health and 
safety initiatives and controls 
across our operations 
relevance
performance
we set a range of kpis that seek to ensure close 
alignment of our strategic and operational goals 
with the interests of our shareholders and other 
stakeholders we also include certain indicators that 
are used and understood throughout our industry 
to ensure we can track our operational  
and financial progress against industry peers 
overall our kpis track our ability to increase 
production through operational improvements 
grow margins by managing our costs invest wisely 
with the aim of growing gold resources on a per 
share basis and operate within key safety targets 
and standards our primary goal in using these 
kpis and monitoring the underlying factors which 
affect them is to develop a reliable track record of 
profitable growth and financial performance
64
3 the prior years’ basic earnings per share and operating cash flow per share comparatives 
were calculated using the 2010 number of average weighted shares as the company was 
not incorporated in the prior years stated and thus had no share capital
4 based on restated revenue to include sales of coproducts refer to page 48 and note 2a 
on page 107 as part of the notes to the consolidated financial statements
5 production reflects equity ounces which exclude 30 of tulawaka’s production base
t otal shareholder 
return 
 34
wwwafricanbarrickgoldcom
operationally 2010 has seen unprecedented levels of activity for abg 
for the first time all four of our mines were operational for the full year 
although we faced certain challenges in our operating environment 
that impacted on our overall group production levels nonetheless 
our group production for the year was 700934 ounces 
with respect to our cash costs for the year we saw a 7 increase over 
2009 to us569 per ounce sold the increase was primarily due to lower
thanexpected production levels at buzwagi increased costs incurred 
at the mine and industry cost pressures generally cash costs of us55 
per tonne milled for the year were slightly lower than the 2009 figure of 
us57 per tonne primarily as a result of the overall incremental increase 
in tonnes milled from open pit operations 
abg sold 724083 gold ounces for the year up by 6 on 2009 683687 
ounces despite the decrease in our overall production the increase 
was driven by the sale of concentrate ounces on hand at bulyanhulu and 
buzwagi at the end of 2009 
w e mined 400 million tonnes of ore and waste for the year compared to 
368 million in 2009 the increase was driven primarily by the focus on 
wastestripping at the gokona open pit in order to access highgrade ore 
from 2012
chief operating officer’s review
driving process and performance
operationally 2010 has seen 
unprecedented levels of activity for abg 
for the first time all four of our mines 
were operational for the full year although 
we faced a number of challenges in our 
operating environment that impacted on 
our overall group production levels 
marco zolezzi
 2010 2009  v ariance
operating results  
t onnes mined thousands of tonnes 40016 36781 9
ore tonnes processed thousands 
of tonnes 7706 6546 18
recovery rate percent 861 870 1
average grade grams per tonne 33 39 15
attributable gold production
1
 
ounces 700934 716306 2
attributable gold sold
1
 ounces 724083 683687 6
copper production  
thousands of pounds 7958 6788 17
cash cost per tonne milled
2
 ust 55 57 4
per ounce data usoz  
– average spot gold price
3
1225 972 26
– average realised gold price
2
1240 974 27
– cash cost per ounce sold
2
569 533 7
–  amortisation and costs per 
ounce sold
2
147 128 15
–  total production costs per  
ounce sold 716 661 8
key initiatives and priorities for 2011
•	 deliver maximum sustainable production and cost discipline
•	 maintain focus on best leadership management and 
technical practices
•	 continue the enhancement of site security infrastructure 
and processes
•	 build on improvements to health and safety systems 
and processes
•	 continue the development of training for workforce and 
local communities 
•	 translate strategy into capital allocation optimise capital 
allocation and realise key business opportunities
1  production and sold ounces reflect equity ounces which exclude 30 of tulawaka’s 
production base 
2  cash cost per tonne milled average realised gold price per ounce sold cash cost per 
ounce sold amortisation and other costs per ounce and total production cost per ounce 
are nonifrs financial performance measures with no standard meaning under ifrs 
refer to ‘non ifrs measures’ on page 54 for definitions 
3  reflects the london pm fix price
 the statistical information above includes nonifrs measures an explanation of non
ifrs measures is included on page 54 an explanation of mine statistical information is 
included on page 168 annual report and accounts 2010
35
overview governance financial statements shareholder information performance
t onnes of ore processed for the year totalled 77 million an 18 increase 
on 2009 levels 65 million tonnes the increase was mainly driven by 
increased throughput at north mara and at buzwagi compared to the 
prior period which only reflected eight months’ production at buzwagi 
the average grade for the year was 33 grams of gold per tonne 15 lower 
than the prior year period the decrease was due to three key issues the 
processing of lowgrade stockpiles at buzwagi in the third and fourth 
quarters the lower grade of the transitional ore processed overall at 
buzwagi when compared to the oxide material mined during 2009 and 
the lowgrade stockpiles processed throughout the year at t ulawaka 
our copper production for the year of eight million pounds represents 
a 17 increase on 2009 which only reflected eight months of production 
at buzwagi 
bulyanhulu delivered in line with expectations throughout the year 
however it was deeply regrettable that we suffered three fatalities as a result 
of a rock fall in march as well as a further fatality from a nonmining related 
accident later in the year as greg has noted it is imperative that we learn 
from these incidents and from the thorough investigations we subsequently 
carried out to ensure that there is no recurrence 
north mara delivered production ahead of budget and at a slightly 
lower cash cost per ounce sold when compared to 2009 in addition the 
announcement of a highgrade initial underground resource beneath the 
planned final gokona and nyabigena open pits highlights the potential 
for north mara both to extend its mine life and to add significant ounces 
to abg’ s production base going forward
t ulawaka has continued to outperform its original feasibility study for 
its underground operation with an initial extension of its lifeofmine 
through to the second quarter of 2012 during the year we also invested 
in the infrastructure of the operation particularly its mobile fleet to 
ensure consistency of production and continuing profitability
at buzwagi a number of challenges impacted production and cash 
costs at the mine in the first part of the year the layer of transitional 
ore between the oxide cap and the primary sulphide ore proved to be 
both slightly deeper than expected and of a higher grind index this 
caused a number of equipment failures in the process plant which were 
compounded by a series of unscheduled power outages that negatively 
impacted production in addition during the third quarter we uncovered 
an organised and systematic onsite fuel theft which had a further 
impact on production at the mine investigations indicated that criminal 
fuel theft syndicates had widely infiltrated our mining department in 
response we suspended approximately 60 employees and a number of 
contractors representing over 40 of mining department personnel 
unfortunately the reduction in mining capacity further delayed the 
mining of highergrade ore and the processing of lowgrade stockpiles
w e implemented a series of measures to address these issues during the 
year these included
•	 strengthening the senior management team with boyd timler’ s 
appointment as general manager
•	 bringing forward mining fleet expansion from 2011 to accelerate stage 
two mining
•	 optimising the drillandblast programme in the open pit
•	 hiring and training replacement mining personnel following the  
fuel theft
•	 recommissioning the sulphur plant and optimising the flotation plant
•	 ordering additional pebble ports and backup generating power for 
2011 and
•	 conducting a full site security review and implementing additional 
security measures
overall we are confident that the measures undertaken in 2010 will 
have a positive longterm impact at buzwagi in addition our recent 
announcement of an initial mineral resource at our golden ridge project 
underpins our belief and confidence in the potential of this project to 
become a significant satellite operation to the buzwagi mine in the future
the stability of power supply posed a number of challenges to production 
throughout 2010 we anticipate sporadic interruptions in power 
supply throughout 2011 and will continue to monitor this issue and the 
impact that this may have on our production levels closely throughout 
the forthcoming year so far we have made progress in connecting 
bulyanhulu buzwagi and north mara to the national grid system 
t ulawaka remains exclusively diesel powered currently we maintain 
back up diesel power generating capacity at bulyanhulu and north mara 
in order to mitigate the risks posed by power supply interruptions at 
our largest operations and we expect to install 6mw of backup power at 
buzwagi by mid 2011 from a state perspective tanesco continues to 
expand its transmission network and its generating capacity to meet the 
increasing energy demands of the growing t anzanian economy w e have 
been and will continue to be supportive of this expansion through our 
ongoing relationship with tanesco an overview of our relationship 
with tanesco is provided on pages 18 19 and 83
in addition the recent shortage of rainfall in t anzania has raised the 
possibility that there could be a reduction in the availability of electricity 
generated from hydropower which may impact our operations if as a 
result total electricity supply is insufficient to meet demand w e will 
continue to monitor this development and the impact that it may have 
on our operations 
further details on our initiatives to address power supply and the risks 
that power stoppages shortages and interruption of utilities supply have 
on our operations have been provided on pages 18 19 60 67 and 68
as discussed at the time of our ipo the north mara mda and mining 
licence are due to expire on 7 september 2011 applications to renew 
both of these agreements were submitted in the third quarter of 2010 w e 
expect the renewal of the mda to be on the same terms as the existing 
agreements and for the remainder of north mara’ s life of mine 
looking forward we believe that we are well positioned to deliver on the 
potential of the company’ s asset base as we enter 2011 this year our 
focus will remain on achieving operational excellence in order to deliver 
stable and profitable production levels 
marco zolezzi chief operating officer 36
wwwafricanbarrickgoldcom
mine profile
the bulyanhulu gold mine is located in north west tanzania  
in the kahama district of the shinyanga region approximately  
55 kilometres south of lake victoria and approximately 150 
kilometres south west of the city of mwanza a regional business 
and economic hub the bulyanhulu 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
operating review
bulyanhulu – optimising for growth
progress and priorities 2010 performance
2011 priorities
•	 ensuring safety standards and in particular underground support regimes are 
strictly observed
•	 focus on growth projects to improve the overall ounce profile with the continuance 
of the upper east zone study and other production opportunities
•	 completion of fuel lubricant and workshop facilities and upgrades both on surface 
and underground to improve equipment availabilities
•	 continue our strong commitment to training with a focus on specialised skills
•	 completion of the dewatering project to improve the reliability of the mine 
dewatering systems
2010 progress
•	 solid production for the year laying a good foundation for 2011 
•	 entrenchment of cost control structure in place across the operation
•	 bulk air cooler project and electrical infrastructural upgrade completed during 
the year which will significantly improve mining conditions at depth
•	 surface infrastructure was improved with the completion of a new emergency 
response centre messing facilities and conference area
•	 strong drive on training especially focused on specialised areas such as mechanical 
mining equipment operators
•	 establishment of new underground training facility
key mine statistics
y ear ended 31 december
2010 2009  variance
underground ore tonnes hoisted kt 958 967 1
ore milled kt 954 959 1
head grade gt 92 87 6
mill recovery  922 921 0
ounces produced oz 259873 248991 4
ounces sold oz 262442 255121 3
cash cost per ounce sold usoz 539 651 17
cash cost per tonne milled ust 148 173 14
capital expenditure us’000 80539 59583 35
259873
the statistical information above includes nonifrs measures an explanation of nonifrs measures is included on page 54  
an explanation of mine statistical information is included on page 168
bulyanhulu
37
contribution to total group ounces oz annual report and accounts 2010
37
overview governance financial statements shareholder information performance
cash costs for the year of us539 per ounce sold were 17 lower 
than the prior year of us651 this was primarily a result of our 
improved production base and increased coproduct revenue which 
was driven by increased copper prices other contributing factors 
include improved costmanagement measures with lower consumables 
costs lower maintenance cost due to investments made in new mining 
equipment and a decrease in contracted services costs as a result of 
insourcing alimak mining activities the cost benefits of these measures 
were partially offset with an increase in labour costs due to increased 
headcount and inflationary pressure 
cash costs per tonne milled fell to us148 in 2010 us173 in 2009 
as a result of mining cost reductions and increased copper revenues
capital expenditure for the year of us805 million was 35 higher 
than the prior year of us596 million this was mainly driven by a 
number of investments made in the underground mine and surface 
infrastructure notable investments included the new refrigeration 
plant the shaft dewatering system the underground workshop and 
additional mining equipment
we suffered four fatalities at the mine this year which is deeply 
regrettable details of these fatalities and the actions that we have taken 
in response to this are provided as part of our health and safety report 
on page 61
bulyanhulu mine overview
the bulyanhulu gold mine is located in north west tanzania in the 
kahama district of the shinyanga region approximately 55 kilometres 
south of lake victoria and approximately 150 kilometres south west of 
the city of mwanza a regional business and economic hub site access is 
good with a private airport and local unpaved roads connecting to the 
main highway close to kahama the average annual temperatures range 
between 15° and 35°c average annual rainfall in the region is 953mm 
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 and it is transitioning 
towards narrowvein conventional mining as its principal mining 
method as at 31 december 2010 a total of 2940 individuals were 
employed at bulyanhulu consisting of 2437 group employees and 
503 contracted personnel 
bulyanhulu is a narrowvein gold mine containing gold silver and copper 
mineralisation in sulphides mineralisation of bulyanhulu is associated 
with steeplydipping reefs t o date a number of distinct reefs have been 
identified including reef zero reef one and reef two bulyanhulu’ s 
lifeofmine is currently estimated to be in excess of 25 years based on 
its proven and probable gold reserves of 11026000 ounces 
operating performance
bulyanhulu delivered solid results in 2010 hitting key production 
targets for the year 
gold production for the year was 259873 ounces 4 higher than the 
prior year period’s total of 248991 ounces mainly due to the higher
grade ore mined in 2010 
gold ounces sold for the year were 262442 ounces which was 1 
higher than the production figure and also 3 higher than 2009 the 
difference in sales was due to selling all unsold gold concentrate from 
the previous year bringing the yearend finished gold inventories back 
to normalised levels combined with an increase in the production base 
of 10882 ounces 38
wwwafricanbarrickgoldcom
progress and priorities
operating review continued
buzwagi – overcoming challenges
mine profile
the buzwagi mine is located in north west tanzania in the 
kahama district of the shinyanga region approximately 97 
kilometres from bulyanhulu and six kilometres south east from 
the town of kahama 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
repositioning buzwagi
the focus at buzwagi throughout 2010 has been 
on implementing a detailed action plan with the 
following areas of focus 
process plant 
a review of the process plant highlighted a number 
of measures and ways in which we could maximise 
future performance measures included rebuilding 
the primary crusher concave liners and replacing the 
secondary crusher liners rebuilding the low pressure 
water pumps relining the sag mill shell and 
redesigning the pebble ports recommissioning the 
sulphur plant with a complete process review and 
optimising the flotation plant to increase the copper 
contained in the concentrate investments in these 
measures should help to ensure that the plant meets 
its target levels of throughput and recoveries
mine
the pit scheduling was reassessed and revised 
following changes to equipment availability 
expectations we expanded the mining fleet 
throughout the year in order to have appropriate 
capacity to deal with taskspecific support this 
helped to ensure optimal availability for open pit 
mining operations there has also been a full review 
of the drillandblast programme which has led 
2011 priorities
•	 continue the development and training of workforce
•	 continue the acceleration of stage two mining by additional expansion of the 
mining fleet
•	 upgrade detox circuit for improved mill recoveries and lower soluble copper levels
•	 install backup power generation to reduce the impact of power outages realising 
higher mill availability
•	 automate the flotation circuit to improve copper and gold concentration values
•	 improve sag mill discharge for increased mill throughput
key mine statistics
y ear ended 31 december
2010 2009  variance
tonnes mined kt 18848 19843 5
ore tonnes mined kt 4285 5034 15
ore milled kt 3553 2671 33
head grade gt 20  25 20
mill recovery  810 874 7
ounces produced oz 186019 189031 2
ounces sold oz 198221 153682 29
cash cost per ounce sold usoz 685 422 62
cash cost per tonne milled ust 38 24 58
capital expenditure us’000 29781 109298 73
the statistical information above includes nonifrs measures an explanation of nonifrs measures 
is included on page 54 an explanation of mine statistical information is included on page 168
2010 progress
•	 strengthening the senior management team with appointment of new 
general manager
•	 optimising the drillandblast programme in the open pit
•	 hiring and training replacement personnel following the fuel theft
•	 recommissioning the sulphur plant and optimising the flotation plant
•	 enhancing site security and controls
buzwagi
2010 performance
186019
27
contribution to total group oz annual report and accounts 2010
39
overview governance financial statements shareholder information performance
gold ounces sold during the year amounted to 198221 exceeding 
production by 7 and representing a 29 increase over the previous 
year 153682 the increase in gold ounces sold versus the prior year 
as well as versus 2010 production was due to a combination of the gold 
concentrate and gold in circuit inventories that built up in the process 
throughout 2009 and which were subsequently sold in 2010 
cash costs for the year were us685 per ounce sold compared to 
us422 in 2009 key factors which negatively impacted cash costs 
included i the lowerthanexpected production levels ii higher 
energy costs resulting from the fuel theft and iii higher maintenance 
and contracted services costs incurred in addressing mill downtime 
and processing issues in addition a number of measures were taken to 
enhance security and onsite management in response to the fuel theft 
which resulted in increased labourrelated costs 
cash costs per tonne milled increased to us38 in 2010 us24 
in 2009 the increase in costs was primarily due to the key factors 
explained above and lower monthly average milling throughput due 
to power outages and unplanned breakdowns
capital expenditure for the year was us298 million compared to 
us1093 million in 2009 capital investment in 2009 included project 
development costs of us1012 million whereas capital investment in 
2010 was primarily focused on mining equipment and improving the 
production plant to optimise operations
buzwagi mine overview
the buzwagi mine is located in north west tanzania in the kahama 
district of the shinyanga region approximately 97 kilometres from 
bulyanhulu and six kilometres south east of the town of kahama the 
buzwagi mine is tanzania’s secondlargest mining operation and the 
largest single open pit mine in the country accessibility to buzwagi is 
good with the location of the site immediately beside a paved highway 
and a 1580metre airstrip the site is also 40 kilometres from isaka 
a railway hub with links to the port of dar es salaam located on the 
indian ocean the annual average temperature ranges between 16° 
and 29°c average annual rainfall in the region is 953mm 
the buzwagi mine consists of an open pit mine oreprocessing 
facilities a wasterock storage facility a tailings storage facility water 
management and other ancillary facilities as at 31 december 2010 
a total of 1992 individuals were employed at buzwagi consisting of 
802 group employees and 1190 contracted personnel
buzwagi is a shearhosted quartzveined deposit hosted in 
porphyritic granite buzwagi’s lifeofmine is currently estimated to 
be approximately 13 years based on its proven and probable gold 
reserves of 2892000 ounces 
operating performance
buzwagi’ s gold production for the year was 186019 ounces compared 
to 189031 ounces for the previous year which only reflected 
eight months of production this production level was lower than 
management’s expectations for the year and was primarily due to two 
reasons firstly the longerthanexpected time taken to process the 
lowgrade transitional ore which adversely impacted throughput and 
plant recoveries and secondly the shortterm impact of measures 
taken to address the systematic onsite fuel theft discovered during the 
third quarter to address these production challenges management 
focused efforts on training new mining and maintenance personnel and 
improving plant and equipment availability we also made a number 
of investments in additional mobile mining equipment to help advance 
mining activities and to address delays in the overall production 
timetable in addition to production challenges it was also necessary 
to address mill downtime resulting from unplanned breakdown 
and power outages throughout the year which remain an ongoing 
issue production improved over the second half of november and 
throughout december as the operational measures taken during the 
year began to take effect the grade of 20 gt was 20 lower than the 
previous year’s 25 gt this decrease was primarily due to processing 
a different material blend and lowergrade ore when compared to 2009
to a number of operational improvements aimed 
at increasing blasting effectiveness and reducing 
wall damage we intend to continue the expansion 
of our mining fleet in 2011 so as to continue the 
acceleration of stage two mining in the open pit 
security
we implemented a number of measures to 
maximise site security we have enhanced security 
infrastructure with the installation of additional 
perimeter fencing and surveillance equipment and 
we implemented a number of new security checks 
and procedures we also increased security presence 
both onsite and around the site perimeter and in 
surrounding communities 
we began to see the positive impact of actions 
undertaken in the fourth quarter in terms of 
improved plant availability throughput and 
recoveries overall we believe that buzwagi is 
now better positioned to deliver on its longterm 
objectives and targets as a result of the actions that  
we have undertaken  40
wwwafricanbarrickgoldcom
progress and priorities 2010 performance
operating review continued
north mara – exceeding expectations
2011 priorities
•	 continue to build on engagement with local communities
•	 advance the north mara underground feasibility study
•	 advance the plant upgrade project to focus on enhanced recovery  
and the detox plant
•	 commission water treatment plant
•	 continue to deliver on production and cost targets
mine profile
the north mara gold mine is located in north west tanzania in the 
tarime district of the mara region approximately 100 kilometres 
east of lake victoria and 20 kilometres south of the kenyan border 
current capacity of the mill operations is approximately 8000 
tonnes per day or approximately 29 million tonnes per year
key mine statistics
y ear ended 31 december
2010 2009  variance
tonnes mined
1
 kt 20106 15888 27
ore tonnes mined kt 2624 4933 47
w aste kt 17482 10955 60
ore milled kt 2860 2605 10
head grade gt 28 32 12
mill recovery  829 797 4
ounces produced oz 212947 212358 0
ounces sold oz 218684 209495 4
cash cost per ounce sold usoz 472 508 7
cash cost per tonne milled ust 36 41 12
capital expenditure us’000 91442 46114 98
212947
the statistical information above includes nonifrs measures an explanation of nonifrs measures is included on page 54  
an explanation of mine statistical information is included on page 168
2010 progress
•	 implemented community reengagement strategy including implementation 
of stakeholder grievance mechanisms
•	 consistently met or exceeded production targets and exceeded budgeted 
gold production
•	 commissioned the north mara national power grid connection project
•	 advanced the mine modernisation and upgrade plan as regards infrastructure 
facilities mining equipment and relevant technology
•	 acid rock drainage issues addressed and approved by the tanzanian authorities
north mara
30
contribution to total group oz annual report and accounts 2010
41
overview governance financial statements shareholder information performance
gold ounces sold for the year were 218684 3 higher than the 
production of 212947 ounces and 4 higher than the previous year’s 
ounces sold of 209495 ounces the increase in sales ounces was mainly 
due to the sale of ounces on hand at the end of the previous year
cash costs for the year were us472 per ounce sold compared to 
us508 in the prior year period the decrease was primarily driven by 
lower administrative expenditure cost savings achieved in the energy 
consumables and maintenance areas and the capitalisation of gokona 
stripping costs
cash costs per tonne milled decreased to us36 in 2010 us41 in 
2009 the decrease was primarily due to improved mill productivity 
processing and administrative costs savings 
capital expenditure for the year totalled us914 million 98 higher 
than the us461 million in the prior year key capital expenditure 
driving the increase included capitalised waste stripping mainly relating 
to the gokona stage two push back us498 million and capitalised 
exploration expenditure us81 million to define the gokona deeps 
underground project
north mara mine overview
the north mara gold mine is located in north west tanzania in the 
tarime district of the mara region approximately 100 kilometres east 
of lake victoria and 20 kilometres south of the kenyan border the 
site is accessible by various means including through the national road 
system and an airstrip located seven kilometres from the processing 
plant the annual average temperature ranges between 16° and 29°c 
average annual rainfall for the region is 1300mm 
the north mara mine consists of four open pit deposits nyabirama 
gokona and nyabigena and development potential at komarera  
there are also a process plant waste rock dumps a tailings containment 
pond and other associated facilities as at 31 december 2010 a total 
of 1753 individuals were employed at north mara consisting of 829 
group employees and 924 contracted personnel
the north 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 north 
mara’s lifeofmine is estimated to be approximately ten years based on 
its proven and probable gold reserves of 2836000 ounces
operating performance
north mara performed in line with expectations and showed stable 
production results 
the mine’s gold production for the year was 212947 ounces remaining 
flat when compared to the prior year figure of 212358 ounces where 
lower mine production was offset by strong mill performance the 
decrease in ore tonnes mined was a result of our continued focus on 
stripping at gokona which was offset by increased ore tonnes mined 
from nyabirama the 2010 grade of 28 gt compared negatively to 
the 2009 grade of 32 gt this was the result of processing a higher 
proportion of lowergrade stockpiled ore in the second half of 2010 to 
supplement lower production from the nyabirama and nyabigena open 
pits the processing plant’s throughput of 2860 kt was 10 higher than 
the previous year owing to high mill uptime and a favourable ore blend  42
wwwafricanbarrickgoldcom
progress and priorities 2010 performance
operating review continued
tulawaka – focused on extension
mine profile
the tulawaka gold mine is located in north west tanzania in 
biharamulo district of the kagera region and borders the bukombe 
district of the shinyanga region south west of lake victoria near the 
north west border with rwanda current operating capacity of the 
mill operations is approximately 1320 tonnes per day
2011 priorities
•	 evaluate additional expansion opportunities through underground exploration 
to further extend the life of mine
•	 develop a second access portal to enhance ventilation and ore hauling ability
•	 open west pit extension to supplement production for six months and meet 2011 
production targets
•	 obtain recertification from the international cyanide management institute
key mine statistics
reflected as 70 y ear ended 31 december
2010 2009  variance
underground ore tonnes hoisted kt 103 83 24
ore milled kt 340 312 9
head grade gt 41 70 41
mill recovery  932 941 1
ounces produced oz 42094 65926 36
ounces sold oz 44736 65389 32
cash cost per ounce sold usoz 709 413 72
cash cost per tonne milled ust 93 87 7
capital expenditure us’000 100 15513 7884 97
42094
data to  
be supplied
the statistical information above includes nonifrs measures an explanation of nonifrs measures is included on page 54  
an explanation of mine statistical information is included on page 168
2010 progress
•	 surface and underground exploration continued to deliver exciting results
•	 the appointment of a new management team to reenergise the mine personnel 
•	 initial minelife extension to the second quarter of 2012
•	 site security and controls enhanced to ensure ongoing stability for operations
tulawaka
6
contribution to total group oz annual report and accounts 2010
43
overview governance financial statements shareholder information performance
operating performance
tulawaka has successfully outperformed its original feasibility for 
the underground operation in terms of reserve additions and ounce 
production throughout the year a key focus of the mine’s management 
has been on exploration and definition drilling to extend the mine life 
beyond 2011 we were pleased to announce an initial extension of the 
lifeofmine as part of our preliminary results announcement and will 
continue to focus on further extensions in 2011 
the mine’s attributable gold production for the year was 42094 
ounces compared to the 65926 ounces achieved in 2009 this lower 
gold production level resulted from mining lowergrade ore from 
the underground pit and processing lowergrade material from the 
stockpiles than in 2009
gold ounces sold amounted to 44736 for the year 6 higher than 
production and down 32 compared to 2009 reflecting the decline 
in production
cash costs for the year were us709 per ounce sold compared to 
us413 in the prior year this cost increase was mainly due to the lower 
production base and increased mining costs compared with 2009 
the increased mining costs were driven by higher fuel labour and 
maintenance costs 
cash costs per tonne milled increased to us93 in 2010 us87 in 
2009 primarily as a result of the higher cost of underground mining 
capital expenditure for the year totalled us155 million compared 
to us79 million for the previous year notable investments included 
additional mining equipment us44 million increased exploration 
development us28 million and the support of mine life extension
t ulawaka mine overview
the tulawaka gold mine is located in north west tanzania in the 
biharamulo district of the kagera region it borders the bukombe 
district of the shinyanga region south west of lake victoria near 
the north west border with rwanda the mine is approximately 120 
kilometres west of the bulyanhulu mine and 1000 kilometres from 
dar es salaam the site is accessible through the existing road network 
the main paved highway from the railway line from isaka to burundi 
passes about 20 kilometres to the south of the mine while the old 
dar es salaam to burundi laterite road crosses the property three 
kilometres south of the camp local roads connect the property to the 
geitabiharamulo laterite road the annual average temperature ranges 
between 25° and 40°c the average annual rainfall is in the region 
of 860mm 
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 a processing plant as well as water 
waste disposal and ancillary facilities as at 31 december 2010 a total 
of  13 individuals were employed comprising 426 group employees 
and 287 contracted personnel
pangea minerals limited owns and operates the tulawaka mine 
assets however 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 subsidiary pangea goldfields inc 70 and 
mdn 30 abg’s joint venture partner for the mine further details 
regarding this relationship and the related tulawaka agreement are 
provided on page 83 
the tulawaka mine comprises two ore bodies the east zone and the 
west zone the east zone is the main gold deposit the west zone is 
still being explored tulawaka’s lifeofmine is currently estimated to 
take operation to the second quarter of 2012 based on its proven and 
probable gold reserves of 67000 ounces  44
wwwafricanbarrickgoldcom
exploration review
progress across the portfolio
abg is committed to expanding its gold 
resources reserves and production profile 
through exploration the current platform of 
operating mines benefits from a significant 
resource base that underpins the company’s life
ofmine plans this resource base has been built 
on our exploration efforts where our average 
finding cost is around us15 per ounce
peter spora
2010 highlights
•	 successful drill hole intercepts at the nyanzaga project indicate 
the potential to locate additional resources at the tusker deposit
•	 exploration drilling at tulawaka continued to demonstrate the 
potential to extend the mine life to 2012
•	 announcement of initial underground indicated resource of 
370000 gold ounces at 829 gt beneath the planned final gokona 
and nyabigena open pits
•	 drilling along the gokona corridor to test for additional gold 
deposits has produced encouraging initial results
2011 priorities
•	 continuation of drill programmes at the nyanzaga project  
tusker and kilimani resource areas in combination with  
testing of additional targets on the property
•	 expansion of the tulawaka deeps underground drill programmes 
to further extend the life of mine
•	 progress infill and expansion resource drilling for north mara 
underground project 
•	 testing of regional targets within the wider north mara region for 
new standalone deposits
•	 expansion of near mine exploration drill programmes at bulyanhulu
exploration and project development pipeline
production
target size opportunity
scoping  feasibility studies advanced exploration  
resource development
t arget delineation grassroots programme
mine site satellite
lake 
victoria 
goldfields
africa
wide
1 moz
750 
koz
500 
koz
100 
koz
africawide 
ma
karagwe  
ankolean
kahama
gokona 
corridor
buly reef  
1  2 east
buly reef  
2 west
nyanzaga 
regional
masabi 
extensions
dett
nyakafuru  
jv
kilimani
jomu
tusker
north 
mara ug
buly 
upper east 
zone
komarera
golden 
ridge
tulawaka  
deeps
surubu annual report and accounts 2010
45
overview governance financial statements shareholder information performance
work in a number of countries assessing the potential for projects 
that would add value through both enhancing our growth profile and 
adding strategically important geographic diversification from a 
greenfield perspective in may 2010 we completed the acquisition of 
tusker gold for a consideration of approximately us63 million net 
of cash acquired as a result of this acquisition we now control 100 
of the nyanzaga project which includes the tusker deposit this is one 
of the largest undeveloped gold deposits in tanzania
overall the positive progression of our exploration projects and efforts 
throughout the year by the exploration and technical services teams 
clearly shows abg’s ability to recognise near mine opportunities 
and additional upside opportunities across regional areas this is 
strategically important as it supports both our existing production 
platform and organic growth prospects
organic growth projects
brownfield projects 
the north mara underground extension
this project is focused on developing underground resources beneath 
the gokona and nyabigena open pits the objective is to bring 
underground resources into production as soon as possible with the 
aim of processing highergrade underground ore and displacing some 
of the lowergrade open pit ore in order to increase production levels 
and at the same time extend lifeofmine at north mara
as announced in december 2010 following an earlier scoping study 
we have delineated and validated an initial highgrade underground 
indicated resource of 370000 ounces of gold at 829 gt beneath the 
planned final gokona and nyabigena open pits this indicates that 
there is the potential to develop a substantial underground operation 
at the gokona and nyabigena deposits with an attractive grade profile 
the underground feasibility study to assess the full potential of the 
current resource on the gokonanyabigena project is on schedule for 
its targeted completion in mid2011
abg’ s commitment to exploration continues to grow and for 2011 our 
exploration budget is again being increased following the additional 
expenditure in 2010 for 2011 we are budgeting total exploration 
expenditure both expensed and capitalised of us55 million this 
represents a 103 increase on 2010
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 highergrade satellite deposits and 
•	 to progress regional exploration in order to evaluate new 
opportunities throughout africa particularly through acquisitions
throughout 2010 our exploration and technical services teams 
have principally focused on advancing our organic growth projects 
in and around each of abg’s current tanzanian operations as well as 
advancing important regional exploration programmes at our north 
mara and nyanzaga projects
we are undertaking ongoing feasibility studies at four key projects 
golden ridge north mara underground bulyanhulu upper east 
zone and the tulawaka east zone underground extension all four 
studies have progressed in line with our expectations of particular 
note were the ongoing feasibility studies at golden ridge and 
bulyanhulu’s upper east zone which progressed positively through 
the year so have our efforts on the east zone underground extension 
at tulawaka where we have achieved an initial extension of the life of 
the mine key achievements during the year included the declaration 
of an initial underground resource at north mara although at an 
earlier stage we also reported a number of successes in the continuing 
developments of the drill programmes we have been carrying out at the 
nyanzaga project
during 2010 abg reviewed a number of opportunities for regional 
expansion we are continuing to undertake exploration and evaluation 
drilling on gokona deeps 46
wwwafricanbarrickgoldcom
exploration continued
in addition abg’s exploration group has been completing deep 
diamond drilling in and around the current gokona underground 
resource area this drill programme is aimed at extending and 
validating highergrade mineralised zones assay results for this drilling 
programme have now been received for six holes results from most of 
these holes have better delineated the extent of higher grade shoots and 
the potential extension of the gokona west highgrade shoot at depth 
based on the positive results of the initial resource estimate and the 
exploration drilling programme we are scheduled to begin a significant 
resource drillout programme early in 2011 the resource drillout is 
aimed at expanding the total underground resource to greater than  
one million ounces we will also use these programmes to demonstrate 
and validate the economic viability of the project 
north mara – nyabigena east
gradecontrol activities that we conducted throughout the year 
identified opportunities to extend the nyabigena resource area at the 
eastern end of the existing open pit a reverse circulation drilling 
programme initiated during the first quarter of 2010 produced good 
results highlighting the opportunity to extend mining operations in the 
nyabigena east main zone and significantly close the gap between the 
nyabigena main pit and the nyabigena east mineralisation 
the results of infill programmes conducted during the year have 
led to the upgrade from ‘inferred’ to ‘indicated’ of the resource of 
nyabigena east for which a pit has been outlined as part of the 
nyabigena operations 
north mara – gokona corridor
in addition to the underground targets at north mara we are also 
undertaking significant additional exploration elsewhere around the 
mine particularly along the gokona corridor
the gokona corridor extends approximately six kilometres north west 
of the gokona deposit and approximately ten kilometres south east of 
the nyabigena deposit historically very little effective drilling has been 
completed outside the immediate mine area for this reason during 
2010 we completed a reverse circulation scout drilling programme 
along this corridor to test for additional gold deposits initial results 
are encouraging with several holes intersecting anomalous gold zones 
100ppb au along with zones of alteration and veining to build on 
this progress and accurately assess gold deposit potential we are now 
carrying out a significant programme of multielement geochemistry 
on the drill samples in conjunction with the gold analysis additional 
scout drilling and followup of the 2010 scout drilling will be ongoing 
throughout 2011 
tulawaka east zone underground extension
throughout the year the focus of our near mine expansion programmes 
at tulawaka was on the east zone underground extensions the 
objective of the drilling here is to identify and delineate additional 
highgrade gold reserves and resources below the current east zone 
underground infrastructure with the primary purpose of extending 
the life of the tulawaka mine
our exploration drilling continued to extend the known highgrade 
mineralised shoots below the level 7 resource we had previously 
defined indicating potential to extend the mine life further overall 
our drilling programmes indicate that existing mineralised zones 
continue to at least 150 metres below the floor of tulawaka’s now
completed open pit we expect to continue drill programmes 
throughout 2011 which will aim to extend known highgrade zones 
for a further 100200 metres below currently defined depths 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 
golden ridge
approximately 55 kilometres north of the buzwagi operation the 
golden ridge project represents an important opportunity for abg 
to exploit a highergrade mineralisation deposit as a satellite feed to 
the buzwagi mill findings to date indicate that it has the potential to 
produce between 70000 and 100000 ounces per year from 201314
tulawaka east zone – west pit portal into underground annual report and accounts 2010
47
overview governance financial statements shareholder information performance
we are actively progressing the feasibility study which is scheduled 
for completion by mid2011 in furtherance of our initial resource 
declaration abg’s exploration team completed a programme of infill 
reverse circulation drilling and metallurgical testwork diamond 
drilling during 2010 elements of this programme confirmed the 
width and tenor of mineralisation in the main zone and indicated the 
potential for further exploration drilling to target highergrade areas 
bulyanhulu upper east zone
the bulyanhulu upper east zone is approximately 25 kilometres east 
of the main bulyanhulu shaft and contains approximately one million 
gold ounces at 10 gt within reef 1 and 2 the mineralisation in the 
bulyanhulu upper east zone is included in current reserves but it 
was not scheduled for mining until later in the mine life however 
following review of planning models and previous feasibility studies 
we are now considering accelerating the timetable for mining the upper 
east zone within the overall life of mine this would make use of an 
existing 18kilometre decline to this zone which is being dewatered 
and rehabilitated as well as utilising excess milling capacity in the 
process plant
we started a further feasibility study into the upper east zone area 
during the year we intend to complete this study in the first half of 
2011 allowing us to assess the viability of mining the reserves in the 
zone earlier than anticipated in the current lifeofmine plan 
bulyanhulu reef 1 and 2 west
during the year we completed reverse circulation drilling programmes 
on areas of reef 2 west along with reef 1 and reef 0b targets where 
there has previously been relatively limited exploration drilling 
favourable results from this programme warrant a second phase 
of followup drilling so that we can identify additional near surface 
resources for either open pit or underground mining we are planning 
deeper drill holes targeting extensions of highergrade zones in early 
2011 from the existing underground development at bulyanhulu
greenfield projects
the nyanzaga project 
w e took control of 100 of the nyanzaga project following completion 
of our acquisition of tusker gold in may 2010 since then the focus 
of our exploration activities has remained on further delineating and 
expanding the project’s current resources 
the actions we have taken include an aggressive reverse circulation 
and diamondcore stepout and infill drill programme on the tusker 
and kilimani resource areas additionally these drill programmes 
also commenced testing of geophysical and geochemical targets across 
the nyanzaga project area for largescale gold deposits and additional 
satellite opportunities within 15 kilometres of the tusker resource area 
t usker gold declared an inferred resource of approximately 42 million 
ounces for the nyanzaga project in june 2009 our current drill 
programme aims to confirm and expand this resource base and it has 
shown positive results to date stepout and infill drilling on the southern 
strike extensions of the t usker prospect have identified wide highergrade 
extensions of gold mineralisation in particular recent intercepts indicate 
that mineralisation on the southern extensions of the tusker resource 
area occurs closer to surface than previously modelled and deeper 
intersections indicate the potential for grade quality to increase with depth 
in this area of the system in addition results obtained from the drill 
programme are showing potential to locate additional resources on the 
north end of the t usker resource area 
in 2011 our drilling will continue to focus on extending mineralisation 
on the northern western and southern domains of the t usker deposit 
and given the success of the drill programme to date we will expand 
stepout drilling to allow accelerated followup of identified positive 
intersections infill drilling on the main resource area will commence 
to upgrade the existing mineral inventory and inferred resources 
we aim to initiate a scoping study later in 2011 as we gain a greater 
understanding of the extent of the mineralisation on the tusker and 
kilimani project areas
diamond rig drilling at tusker 48
wwwafricanbarrickgoldcom
financial review
a strong financial year
2010 performance highlights
– revenue up 37 to us975 million
– ebitda of us419 million up 68
– operational cash flow of us345 million up 78
– final recommended dividend of us37 cents per share
for the  
year ended  
31 december 
2010
for the  
year ended  
31 december 
2009  change
revenue
1
 us’000 975021 711182 37
ebitda
2 
us’000 419167 249456 68
cash generated from operating 
activities us’000 345141 193961 78
net profit attributable  
to owners us’000 218103 58577 272
cash cost usounce
2
569 533 7
average realised gold price
2
  
usounce 1240 974 27
basic earnings per share  
us cents 532 143 272
dividend per share us cents
3
53 na –
1  based on restated revenue to include sales of coproducts refer to pages 48 and note 2a 
on page 107 as part of the notes to the consolidated financial statements
2  cash costs per ounce sold average realised gold price per ounce sold and ebitda are 
nonifrs financial performance measures with no standard meaning under ifrs 
refer to ‘nonifrs measures’ on page 54 for the definitions of each measure
3 includes final recommended dividend of us37 cents to be paid in 2011
the purpose of this review is to provide a detailed analysis of the 
abg group’s consolidated 2010 results and the main factors affecting 
financial performance this section should be read in conjunction 
with the financial statements and accompanying notes on pages 
100147 which have been prepared in accordance with international 
financial reporting standards as adopted for use in the european 
union ifrs
the abg group achieved robust financial results over the course of 
the year increased revenue from higher sales volume and increases in 
the average realised gold price for the full year have had a very positive 
impact on group earnings and cash flow overall increased sales and 
average realised gold prices resulted in a yearend cash position of 
approximately us401 million the us150 million undrawn revolving 
credit facility which we finalised during the latter half of the year 
strengthens the company’s financial position and provides us with 
additional financial flexibility going into 2011 cash costs per ounce 
averaged at us569 mainly as a result of additional expenses incurred  
at buzwagi 
revenue
revenue for the year of us9750 million was 37 higher than the prior 
year period of us7112 million after restating 2009 revenue to include 
coproduct revenue as set out below the group generated a yearon
year sales volume increase of 40396 ounces and benefited from higher 
average realised gold prices resulting from global economic conditions 
that drove market gold prices to record levels the increase in sales was 
primarily due to the sale of unsold ounces on hand at the beginning of 
the year in gold concentrate at buzwagi and bulyanhulu the average 
realised gold price was us1240 per ounce in 2010 compared to 
us974 per ounce in 2009
coproduct revenue totalled us537 million for the year this 
represents an increase of 202 from the prior year period us178 
million the rampup of buzwagi production of goldcopper 
the abg group achieved robust financial 
results over the course of the year with 
increased sales and increases in the average 
realised gold price for the full year having  
a positive impact on group earnings and 
cash flow 
kevin jennings annual report and accounts 2010
49
overview governance financial statements shareholder information
to be positively influenced by factors such as demand from asia 
global economic growth the limited availability of scrap metal and 
production levels of mines and smelters in the future
cost of sales
cost of sales was us5890 million for the year ended 31 december 
2010 representing an increase of 21 from the prior year period 
us4870 million after restating 2009 cost of sales to reclassify co
product revenue as noted above the key operational activities that 
impacted cost of sales during the year included the following i the 
transition of buzwagi from a project to a fullyear operation and the 
associated operational challenges it faced in 2010 ii the transition 
of the north mara mine from a threepit operation to focusing on the 
investment in the stage two push back at the gokona open pit and iii 
production stability at bulyanhulu providing the opportunity to focus 
on cost optimisation
during 2009 a significant buildup in lowgrade ore stockpiles at 
north mara and buzwagi and copper concentrate at buzwagi increased 
inventories by us63 million the unsold gold was subsequently 
sold in 2010 
revenuerelated costs such as royalties and thirdparty smelting and 
refining fees increased by us159 million following the rising trend 
in revenue and concentrate volume the increase in the thirdparty 
smelting and refining charges has been impacted by increased metal 
prices and costs attributable to sales of gold and copper concentrate 
at buzwagi when compared to no such sales in 2009 depreciation 
and amortisation was us1095 million for the year this represents 
an increase of 17 from the prior year period us934 million this 
increase is due to the higher capital investment base employed in 2010 
as a result of the commercial completion of buzwagi and the rate of 
depreciation when compared to other older operations
us’000
y ear ended 
31 december 
2010
y ear ended 
31 december 
2009
cost of sales  
direct mining expenses 437420 418294 
change in inventories 9753 62885
direct cash operating costs 427667 355409 
thirdparty smelting and refining fees 20307 13027 
other operating costs – 2330 
royalty expense 31550 22911 
depreciation and amortisation 109515 93350 
total 589039 487027 
the consolidated direct mining expenses totalled us4374 million for 
the year this represents an increase of 5 from the prior year period 
us4183 million the key reasons for the increase can be attributed 
to a fullyear of operating costs at buzwagi compared to eight months 
of operating costs in 2009 and the operational challenges it faced  
concentrate contributed to the increase in copper sales volumes  
the 2010 average realised copper price of us355 per pound compared 
to the prior period realised price of us224 per pound assisted greatly 
in the increase in coproduct revenue for these reasons the group 
has reclassified copper and silver as coproduct revenue to reflect their 
increased significance as a percentage of revenue the table below 
provides a reconciliation between gold and coproduct revenue for 2010 
and the 2009 comparative
us’000 2010 2009
gold revenue as previously stated 921302 693412
plus coproduct revenue 53719 17770
t otal revenue 975021 711182
realised copper price  per pound sold 355 224
commodity prices
gold prices have a significant impact on abg’s operating earnings and 
its ability to generate cash flows in 2010 the price of gold reached an 
alltime high trading in a range of us1045 to us1431 per ounce 
and closing at us1421 per ounce market gold prices averaged 
us1225 per ounce a new annual average record and a us253 per 
ounce improvement on the us972 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 as 
a result of the global easing of monetary policy as well as large fiscal 
deficits incurred in the us and other major developed economies 
there is a possibility that both inflation and us dollar depreciation 
could emerge in the coming years gold is viewed as a hedge against 
inflation and has historically been inversely correlated to the us dollar 
therefore higher inflation andor depreciation in the us dollar should 
be positive for the price of gold 
gold prices also continue to be influenced by negative longterm 
trends in global gold mine production the impact of central bank gold 
purchases and investor interest in owning gold in 2010 gold sales by 
central banks were not significant while investor interest led holdings 
by major global etfs to increase by ten million ounces in the year to 
total 69 million ounces at the end of the period historically gold has 
been viewed as a reliable store of value in times of financial uncertainty 
and inflation and as a de facto global currency investor interest in gold 
as an asset class has increased greatly as a result of this
abg also produces copper as a coproduct that is recognised in 
revenue copper prices rose in 2010 particularly in the second half 
trading in a range of us274 to us442 per pound the average 
price for the year was us342 per pound and closed the year at an 
alltime high of us442 per pound copper’s rise during the period 
resulted from a number of factors including strong demand from 
emerging markets especially china decreasing exchange stockpiles 
and increasing investor interest in base metals with strong forward
looking supplydemand outlooks copper prices should continue 
performance 50
wwwafricanbarrickgoldcom
•	 maintenance costs on a comparable basis were higher primarily 
driven by plant breakdowns and a full year of operation at buzwagi 
in addition tulawaka costs were high due to mining equipment 
failure and its transition to inhouse maintenance 
•	 contractor services consist mainly of maintenance and repair 
contractors ‘marc’ and drillinggeology services at buzwagi and 
north mara marc costs at buzwagi increased due to the increase 
in size and age of the mining fleet and a full year of operation 
•	 general and administrative costs increased modestly compared to 
2009 as a result of additional security costs at buzwagi
•	 capitalised direct mining costs consisted of capitalised operating 
costs to reflect deferred stripping at north mara underground mine 
development at bulyanhulu and to a lesser extent tulawaka 
other operating costs in the previous year related to net realisable value 
writedowns relating to supplies inventory 
cash costs
cash costs for 2010 were us569 per ounce sold a 7 increase over 
2009’ s cash cost per ounce sold us533 the increase can be explained 
by lowerthanexpected production levels at buzwagi combined with 
increased costs incurred in dealing with operating challenges at the 
mine partially offset by improved coproduct sales now classified as 
revenue which we deduct from cash costs as set out on page 54 cash 
costs at buzwagi for the year were us685 per ounce sold compared 
to the previous year’s us422 both north mara and bulyanhulu 
performed in line with expectations from a cash costs perspective 
a lower production base at tulawaka resulted in a 72 increase in 
cash costs per ounce sold at the mine when compared to 2009
the table below provides a reconciliation between cost of sales and cash 
costs to calculate the cash cost per ounce sold
us’000 except ounces and per ounce cost 
y ear ended 
31 december 
2010
y ear ended 
31 december 
2009
total cost of sales 589039 487027
deduct byproduct revenue – –
deduct depreciation and amortisation 109515 93350
deduct coproduct revenue 53719 17770
t otal cash costs 425805 375907
total ounces sold
1
743256 711711
consolidated cash cost per ounce 573 528
equity ounce adjustment
2
4 5
attributable cash cost per ounce 569 533
1 reflects 100 of ounces sold
2 reflects the adjustment for noncontrolling interests at tulawaka
financial review continued
the difference in total direct mining expense for buzwagi was us656 
million yearonyear a detailed breakdown of direct mining expenses 
for the group is shown in the table below 
us’000
y ear ended 
31 december 
2010
y ear ended 
31 december 
2009
direct mining expenses  
labour 139594 126450 
energy and fuel 81381 62764 
consumables 82841 86462 
maintenance 64441 57292 
contracted services 81873 59775 
general administration costs 72272 68704 
capitalised direct mining costs 84982 43153
t otal direct mining expenses 437420 418294
bulyanhulu showed an 8 us129 million improvement in costs 
driven by improved cost management measures lowering consumable 
maintenance and contracted services costs which were partially offset 
by increased labour costs from increased head count and inflationary 
increases in remuneration direct mining costs at north mara remained 
flat versus 2009 and significant resources were focused on increased 
capitalised stripping of the gokona stage two push back tulawaka costs 
increased by 23 us57 million due to the cost of labour energy 
maintenance and administration costs required to mine and process 
ore at a lower grade buzwagi costs increased by 71 due to the cost 
of operating the mine on a full year basis as opposed to eight months 
in 2009 and the costs incurred in addressing production challenges 
experienced during the year in addition the higher energy costs caused 
by the onsite fuel theft and increased cost pressure from additional 
operational initiatives taken to improve performance resulted in higher 
labour maintenance consumables and administration expenditure
individual cost components comprise
•	 labour costs have been impacted by increased head count at buzwagi 
and bulyanhulu and inflationary pressure in remuneration to attract 
and retain personnel 
•	 energy and diesel fuel expenses account for all electricity diesel 
fuel and oillubricant expenditures on a comparable basis buzwagi 
drove costs higher partly due to increased milling activity and the 
consequence of the fuel theft the realised wti crude oil cost per 
barrel the key input of diesel rose from an average of us62 to 
us80 in 2010 contributing to higher energy costs this increase 
in diesel costs was partially offset by north mara converting from 
selfgeneration of electricity to drawing from the national power grid 
which resulted in lower costs and less exposure to global fuel prices 
•	 consumable costs on a comparable basis have remained in line 
with 2009 with bulyanhulu driving cost savings through better cost 
management partly offset by higher costs at buzwagi annual report and accounts 2010
51
overview governance financial statements shareholder information performance
finance expense and income
the finance expense decreased to us18 million for the year compared 
to us61 million in 2009 this decrease was primarily a result of the 
repayment of the external debt facility at north mara during the first 
half of 2009 finance expense for 2010 primarily relates to the interest 
expense associated with discounting of the environmental reclamation 
liabilities as well as the initial fee payable for the us150 million credit 
facility that was completed during november 2010 the initial fees to 
complete the transaction such as the participation fee and related legal 
costs will be amortised over the 24month term of the facility abg will 
incur a monthly commitment fee equal to 40 of the interest margin 
above libor as negotiated in the agreement currently abg has no 
external debt 
finance income relates predominantly to interest charged on  
noncurrent receivables and interest received on cash balances
t axation expense
the taxation expense increased to us865 million for the year 
compared to us844 million in 2009 the 2010 expense consists 
of deferred tax of us862 million and corporate taxes of us03 
million which were incurred in 2010 the higher tax expense relates 
to the increased taxable income for 2010 which was generated mainly 
from north mara and bulyanhulu as a result of improved margins 
from higher gold prices the effective tax rate in 2010 amounted to 
28 compared to 56 in 2009 the 2009 reconciliation includes an 
amount of us369 million relating to an increase in the amount of 
unrecognised tax benefits carried forward
disposals and acquisitions
acquisition of tusker gold
on 27 april 2010 abg through buk holdco limited one of its 
immediate subsidiaries acquired tusker gold by way of a takeover offer 
for a total aggregate purchase price of us74 million tusker gold held 
a 49 interest in the nyanzaga project with the abg group owning 
the remaining 51 abg now owns 100 of the nyanzaga project 
further details on this project are provided in the exploration review 
and further details on the tusker gold acquisition are provided in note 
22 to the financial statements
net profit for the period
as a result of the factors discussed above net profit for the year 
ended 31 december 2010 was us2226 million this represents an 
increase of 237 from the prior year period us660 million the 
key drivers were increased revenue as a result of a continued positive 
gold price environment combined with higher sales ounces this 
was partially offset by increased costs of sales which were primarily 
due to the additional cost base from a full year of production at 
buzwagi increased direct mining expenditure across all sites the 
increased taxation expense and increased exploration and evaluation 
expenditure incurred
corporate administration costs
corporate administration costs totalled us354 million for the 
year ended 31 december 2010 this equated to a 6 decrease from 
the prior year period of us378 million corporate administration 
comprised the expenses associated with maintaining the dar es 
salaam johannesburg and london offices costs include salaries office 
rent consulting legal audit fees and investor relations expenses the 
decrease was predominantly driven by a saving in corporate labour 
costs due to the reorganisation exercise completed during the second 
half of 2009 with the transition from dar es salaam to johannesburg 
this was largely offset by the increased costs to run a publicly listed 
company and costs of a london office which was not fully functional 
until mid 2010 
exploration and evaluation costs
exploration and evaluation costs are incurred to advance the 
exploration at our greenfield projects for 2010 us149 million was 
incurred approximately 68 higher than the us89 million incurred 
in the same period in 2009 key focus for the year was exploration 
and stepout drilling at nyanzaga of us72 million us13 million 
at golden ridge to perform metallurgical sampling and resource 
modelling and us36 million at tulawaka to test satellite open pit 
opportunities the increased expenditure supports the current focus 
on growth projects around existing sites some of which are close to 
entering the feasibility stage 
where it is probable that resources will be converted into reserves the 
expenditure is capitalised during 2010 an amount of us122 million 
of exploration costs was capitalised compared to us28 million in 2009 
other charges
other charges amounted to us260 million for the year 22 up from 
the 2009 amount of us214 million other charges consist mostly of 
oneoff costs including foreign exchange gains and losses previously 
deemed part of corporate administration gains and losses on 
disposals social development costs ipo listing costs asset writedowns 
and provision movements the main contributors to the expense are 
the following i foreign exchange losses of us79 million us107 
million in 2009 from the continued devaluation of the tanzanian 
shilling against the us dollar impairing the tzs denominated assets 
on the balance sheet ii us35 million spent during the year on 
corporate social programmes compared to us10 million in 2009 
iii abg’s entry into zero cost collar contracts as part of a programme 
to protect it against copper market volatilities which resulted in an 
unrealised marktomarket revaluation loss of us37 million at year 
end and iv ipo transaction costs of us26 million 
other costs incurred related to the reversal of a buzwagi fuel levy 
claim associated with the fuel theft of us25 million the net provision 
to account for the discounting impact of indirect tax receivables of 
us68 million us69 million in 2009 and adjustments to existing 
indirect tax provisions which were offset with an insurance claim 
received in respect of a claim settled in relation to an excavator 
destroyed in 2009 52
wwwafricanbarrickgoldcom
cash flow
us ’000
 y ear ended 
31 december 
2010
 y ear ended 
31 december 
2009
cash flow from operating activities 345141 193961
cash used in investing activities 275555 248448
cash provided by financing activities 261978 71042
increase in cash 331564 16555
foreign exchange difference on cash and 
cash equivalents 278 136
opening cash balance 69726 53307
closing cash balance 401012 69726
cash flow from operating activities was us3451 million for the 
year an increase of us1511 million on the prior year us1940 
million the increase primarily related to increased ebitda which 
was partially offset by working capital movements ebitda has 
predominantly been driven by increased revenue due to both price 
and sales volume increases working capital was adversely impacted by 
the outflow associated with the increase in indirect tax receivable and 
prepayments of us488 million a decrease in trade and other payables 
of us285 million investment in ore inventory of us160 million 
and supplies inventory of us96 million which was in part offset 
by a reduction in gold sales receivables and finished gold due to the 
introduction of quarterly counterparty advance settlement and backlog 
concentrate sold during the year 
throughout 2010 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 v at 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 certain provisions 
contained in our existing mdas which guarantee the fiscal stability 
of our operations we are pleased to report that the government has 
adopted legislation to reverse the amendments which should allow for 
the fiscal and tax terms of our mdas to be honoured this represents a 
significant step in supporting the stability of the legal framework for the 
mining industry in tanzania as at 31 december 2010 the discounted 
outstanding amounts due to us were approximately us121 million we 
are in discussions with the authorities to agree terms for the repayment 
of these amounts which is likely to be by way of tax offsets
cash flow used in investing activities equalled us2756 million for 
the year this represents an increase of 11 from the prior year of 
us2485 million the increase includes net cash of us631 million 
used for the acquisition of tusker gold taking into account the cash in 
that business on the purchase date as well as us97 million in settling 
outstanding tusker gold stock options total capital expenditure for 
the year of us2244 million increased slightly from the prior year 
figure of us2233 million key projects include the bulyanhulu 
underground development buzwagi mining equipment and additional 
north mara processing and mining projects north mara deferred strip 
of us511 million as well as us122 million relating to capitalised 
net profit attributable to noncontrolling interest
the net profit attributable to the noncontrolling interest for the 
year ended 31 december 2010 was us45 million this represents 
a decrease of 39 on 2009 us74 million due to lower production 
and increased exploration activity at the tulawaka operation
ebitda
ebitda for the year ended 31 december 2010 increased by 68 to 
us4192 million compared to the prior year period us2495 million 
as a result of improved gold prices along with increased ounces sold 
supported further by record coproduct revenue this was partly offset 
by an increase in direct mining cost base predominantly driven by 
buzwagi as it only reflected eight months’ direct mining costs in the 
prior year period increased direct mining costs across some sites as well 
as increased revenue related costs such as royalties smelting refining 
and transport costs note that ebitda includes the impact of other 
charges totalling us260 million which comprise mostly oneoff type 
expenditure a reconciliation between net profit for the period and 
ebitda is presented below 
us000
for the  
year ended  
31 december 
2010
for the  
year ended  
31 december 
2009
net profit for the period 222606 66017
plus income tax expense 86471 84388
plus depreciation and amortisation 109515 93350
plus finance expense 1777 6062
less finance income 1202 361
ebitda 419167 249456
basic earnings per share
basic earnings per share for the year ended 31 december 2010 were  
us532 cents showing an increase of 272 from the prior year period 
of us143 cents the increase has been driven by net profit for the year 
the prior year basic earnings per share comparative was calculated 
using the 2010 number of average weighted shares as abg was not 
incorporated until january 2010 and thus had no share capital in 2009 
financial review continued annual report and accounts 2010
53
overview governance financial statements shareholder information
debt as at 31 december 2010 was zero and decreased substantially 
from us14 billion for the prior year which all related to intergroup 
borrowings a portion of the debt was repaid through proceeds generated 
from the ipo while a large portion was converted into equity through 
the preipo reorganisation
dividend
an interim dividend of us16 cents per share was paid to shareholders 
on 27 september 2010 the directors recommend the payment of a 
final dividend of us37 cents per share subject to the shareholders 
approving this recommendation at the agm 
financial position
goodwill and intangible assets increased from us1564 million in 
2009 to us2585 million in 2010 the increase related to acquired 
exploration and evaluation properties of us801 million as well as 
goodwill of us220 million relating to the acquisition of tusker
the net book value of property plant and equipment increased from 
us15 billion in 2009 to us16 billion in 2010 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 us1071 million
total indirect tax receivables net of a discount provision applied to 
the noncurrent portion increased from us778 million in 2009 to 
us1212 million in 2010 throughout 2010 abg has been actively 
involved in discussions with the tanzanian government and the 
tanzanian revenue authority to recover the fuel excise levies and 
the v at refunds for its operations which is likely to be by way of 
tax offsets 
the net deferred tax position decreased from a net deferred tax asset 
of us933 million in 2009 to a net deferred tax liability of us149 
million this was driven by the taxable income generated during 
2010 details of the deferred tax assets and liabilities are contained 
within note 20 “deferred tax assets and liabilities” to the 2009 
financial statements
net assets attributable to owners of the parent increased by us19 
billion to us25 billion at 31 december 2010 the increase reflects the 
net proceeds from the ipo including the exercise of the overallotment 
option of us8654 million net of transaction costs the conversion 
of certain related party borrowings into equity as part of the preipo 
reorganisation of us10 billion as well as the current year profit 
attributable to owners of the parent of us2181 million this was offset 
by the payment of a special dividend as part of the ipo reorganisation 
of us2530 million the repayment of intergroup borrowings to other 
members of the barrick group and payment of an interim dividend of 
us66 million to shareholders during 2010
debt decreased from us14 billion in 2009 to zero in 2010 the 2009 
balance all related to related party borrowings from other entities in 
the barrick group us5751 million of the debt was repaid through 
proceeds generated from the ipo while the remaining portion was 
converted into equity through the preipo reorganisation
exploration the us2485 million capital spent in 2009 was primarily 
driven by us1012 million spent on the construction of buzwagi
total cash capital decreased from the prior year and amounted to 
us1964 million for 2010 us2074 million for 2009 and reflects 
adjustments made for noncash reclamation additions
a breakdown of invested capital activities for the year is provided below
us’000
for the  
year ended  
31 december 
2010
for the  
year ended  
31 december 
2009
sustaining capital 133312 95700
expansionary capital 63131 111668
t otal cash capital 196443 207368
tusker acquisition
1
 72805 –
noncurrent asset movement
2
 6307 41080
cash used in investing activities 275555 248448
1 the tusker gold acquisition includes the acquisition of the subsidiary net of cash for 
us631 million and the tusker gold stock options settled for us97 million in total 
2 noncurrent asset movement relates to the investment in the powerline and land 
acquisitions reflected as prepaid operating leases tanzania government receivables 
villlage housing project and other items note that for 2010 the longterm indirect tax 
movement has been reflected as part of working capital in the cash flow from operational 
activities section which amounted to us367 million us265 million was classified in 
2009 in the noncurrent asset movement as part of the cash flow from investing activities 
cash provided by financing activities for the year ended 31 december 
2010 of us2620 million increased 268 from the prior year of 
us710 million the increase primarily relates to abg’s ipo and is 
further supported by the partial exercise of the overallotment option 
in total the ipo and the overallotment option proceeds resulted in 
us865 million after deduction of transaction costs this was in part 
offset by the payment of a special dividend and the repayment of inter
group loans to other members of barrick group as part of the preipo 
reorganisation the inflow in 2009 was predominantly funded by 
barrick to support the construction costs associated with buzwagi and 
repayment of external debt at north mara as well as distributions paid 
to noncontrolling interests at tulawaka an interim dividend of us66 
million was paid during q3 of this year 
at 31 december 2010 abg had cash and cash equivalents of 
us4010 million
credit facility
on 24 november 2010 abg and its wholly owned subsidiary barbco 
one ltd entered into a credit agreement with a syndicate of commercial 
banks 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 abg 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 the term of the 
facility is 24 months and when drawn the spread over libor will 
be 350 basis points no amounts were drawn down on the facility at 
31 december 2010
performance 54
wwwafricanbarrickgoldcom
•	 recognition of deferred income tax assets amounts recorded for 
uncertain tax positions the measurement of income tax expense 
and indirect taxes and
•	 determination of fair value of derivative instruments
going concern statement 
the abg group’ s business activities together with factors likely to affect 
its future development performance and position are set out in the 
overview and performance sections of this report the financial position 
of the abg group its cash flows liquidity position and borrowing 
facilities are described in the preceding paragraphs of this financial 
review in addition notes 28 and 29 to the financial statements include 
the group’ s objectives policies and processes for managing its capital its 
financial risk management objectives details of its financial instruments 
and hedging activities and its exposure to credit risk and liquidity risk
in assessing the abg group’s going concern status the directors have 
taken into account the above factors including the financial position 
of the abg group and in particular its significant cash position the 
current gold and copper price and market expectations for the same 
in the medium term and the abg group’s capital expenditure and 
financing plans 
after making appropriate enquiries the directors consider that abg 
and the abg group as a whole has adequate resources to continue in 
operational existence for the foreseeable future and that it is appropriate 
to adopt the going concern basis in preparing the financial statements
nonifrs measures
abg has identified certain measures in this report that are not 
measures defined under ifrs nonifrs financial measures disclosed 
by management are provided as additional information to investors 
in order to provide them with an alternative method for assessing 
abg’s financial condition and operating results these measures are 
not in accordance with or a substitute for ifrs and may be different 
from or inconsistent with nonifrs financial measures used by other 
companies these measures are explained further below
average realised gold price per ounce sold is a nonifrs financial 
measure which excludes from gold revenue
•	 unrealised gains and losses on non hedge derivative contracts
•	 unrealised mark to market gains and losses on provisional pricing 
from copper and gold sales contracts and
•	 export duties
cash costs per ounce sold is a nonifrs financial measure cash 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 cash 
cost is further adjusted by deducting coproduct revenue this reflects 
a change in the cash cost measurement which follows the decision by 
management to present the sale of copper and silver as coproduct 
revenue and part of total revenue 
financial review continued
liquidity and capital risk management
details of our liquidity and capital risk management are contained 
within note 29 “financial risk management” to the 2010 consolidated 
financial statements 
t reasury management and financial instruments
details of our treasury management are contained within note 
29 “financial risk management” to the 2010 consolidated 
financial statements 
details of our financial instruments are contained within note 
28 “derivative financial instruments” to the 2010 consolidated 
financial statements
post balance sheet events
no events have occurred since the balance sheet date which will have 
a significant impact on future performance
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 
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
areas of judgement and key sources of estimation uncertainty that 
have the most significant effect on the amounts recognised in the 
consolidated financial statements include
•	 estimates of the quantities of proven and probable gold reserves
•	 the capitalisation of waste stripping costs
•	 the capitalisation of exploration and evaluation expenditures
•	 review of goodwill tangible and intangible assets carrying value 
the determination of whether these assets are impaired and the 
measurement of impairment charges or reversals
•	 the estimated fair values of cash generating units for impairment 
tests including estimates of future costs to produce proven and 
probable reserves future commodity prices foreign exchange rates 
and discount rates
•	 the estimated useful lives of tangible and longlived assets and the 
measurement of depreciation expense 
•	 recognition of a provision for environmental rehabilitation and the 
estimation of the rehabilitation costs and timing of expenditure
•	 whether to recognise a liability for loss contingencies and the 
amount of any such provision
•	 whether to recognise a provision for accounts receivable and the 
impact of discounting the noncurrent element overview performance governance financial statements shareholder information
annual report and accounts 2010
55
performance
the presentation of these statistics in this manner allows abg to 
monitor and manage those factors that impact production costs on  
a monthly basis abg calculates cash costs based on its equity interest 
in production from its mines cash costs per ounce sold are calculated 
by dividing the aggregate of these costs by gold ounces sold cash costs 
and cash costs per ounce sold are calculated on a consistent basis for 
the periods presented refer to page 50 as part of the financial review 
section for a reconciliation of cost of sales to cash costs 
ebitda is a nonifrs financial measure abg calculates ebitda 
as net profit or loss for the period excluding
•	 income tax expense
•	 finance expense
•	 finance income
•	 depreciation and amortisation and
•	 goodwill impairment charges
ebitda is intended to provide additional information to investors and 
analysts it does not have any standardised meaning prescribed by ifrs 
and should not be considered in isolation or as a substitute for measures 
of performance prepared in accordance with ifrs ebitda excludes 
the impact of cash costs of financing activities and taxes and the effects 
of changes in operating working capital balances and therefore is not 
necessarily indicative of operating profit or cash flow from operations 
as determined under ifrs other companies may calculate ebitda 
differently refer to page 52 as part of the financial review section for 
a reconciliation of net profit to ebitda 
ebit is a nonifrs financial measure and reflects ebitda adjusted 
for depreciation and amortisation and goodwill impairment charges
amortisation and other cost per ounce sold is a nonifrs financial 
measure amortisation 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 amortisation and other costs per ounce sold is calculated 
by dividing the aggregate of these costs by ounces of gold sold 
amortisation and other cost per ounce sold are calculated on a 
consistent basis for the periods presented
cash cost per tonne milled is a nonifrs financial measure cash 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 cash 
cost is calculated net of coproduct revenue and is measured on a co
product basis abg calculates cash costs based on its equity interest in 
production from its mines cash costs per tonne milled are calculated 
by dividing the aggregate of these costs by total tonnes milled
operating cash flow per share is a nonifrs financial measure and is 
calculated by dividing net cash generated by operating activities by the 
weighted average number of ordinary shares in issue 56
wwwafricanbarrickgoldcom
over the course of 2010 positive developments were evident in all 
of these areas and there has been a marked improvement in the 
relationships between our company and our local stakeholders 
particularly at north mara where a number of legacy issues are being 
proactively addressed 
social management expertise
operating in rural areas of tanzania necessitates dealing with certain 
intrinsic challenges with limited infrastructure and social services in 
place and many members of the communities in which we operate 
faced with the daily challenges of poverty that the country’s mining 
sector is in its relative infancy means that our host communities have 
high expectations of the economic benefits that an individual private
sector organisation can deliver
these challenges demand a strong understanding of the complexities 
of the operating environment in tanzania consequently abg has 
instituted an energetic and committed community relations team of 50 
fulltime employees with expertise in social management during 2010 
community relations staffing levels were increased at three of our four 
mine sites and at north mara internationally recognised consultancies 
continue to support the mine’s community relations and resettlement 
programmes recognising abg’s focus on future expansion during 
2010 the community relations function liaised more closely with our 
exploration and projects personnel to focus on laying the foundations 
for effective community relations at the earliest stage possible 
in addition to the work this team carries out we also enable effective 
social management through 
•	 our senior management team’s extensive experience of operating 
in africa 
•	 a culture where it is the responsibility of every employee to ‘behave 
like an owner’ and act as a positive ambassador for the company in 
our host communities
•	 close collaboration with other disciplines such as environment 
security human resources and health and safety and 
•	 the development of a community relations management system that 
will combine all our existing requirements guidelines and tools into 
a single streamlined approach
we believe that our people are our most valuable asset and our 
objective is to become the employer of choice we respect value and 
support our people and we are firm believers in investing in them to 
improve their skills and increase their job satisfaction w e are committed 
to providing the training and development opportunities they need to 
advance in their careers and deliver on our business objectives 
guided by our corporate vision that ‘everyone goes home safe and 
healthy every day’  safety is our most important consideration we 
believe that workrelated injuries or illnesses are unacceptable and 
have set a zero incidence goal for the company over the past year we 
have implemented various health and safety initiatives to promote the 
achievement of superior safety performance among abg workers by 
providing them with the skills and knowledge to perform their tasks 
in a safe and reliable way
at abg we also strive to meet high environmental standards 
while continuously pursuing new avenues and opportunities for 
improvement we adhere to tanzania’s environmental laws and 
incorporate international best practice into our activities this is all 
part of our commitment to reviewing and incorporating external best 
practice into our own environmental policies and procedures 
community relations
abg is committed to operating in a socially responsible way over the 
entire lifecycle of our mines to ensure that local communities have 
the opportunity to share in the benefits of our activities 
the most important ways in which we do this are by
•	 identifying and mitigating any potential negative impacts of mining
•	 engaging in an open and meaningful manner and respecting 
stakeholders’ priorities and concerns
•	 maximising community members’ opportunities to benefit from 
employment and local procurement and 
•	 developing programmes to assist local communities to pursue their 
own longterm socioeconomic priorities 
corporate responsibility
acting responsibly
working closely with 
communities in tanzania
developing positive community relations is a core 
part of the way abg does business not only as a 
corporate responsibility but as a vital requirement 
for our continued operational success for me 
community relations as a function not only deals 
with how we manage potential social impacts 
that mining creates but also how we enhance 
opportunities and benefits for the communities 
where we live and work 
at abg we believe it is critical to establish mutually beneficial relationships with 
the communities in which we operate maintaining our social licence to operate 
is central to our ethos of responsible mining it will help to ensure a stable 
operating environment for our existing assets and allow our exploration team 
access to prospective ground  overview governance financial statements shareholder information
annual report and accounts 2010
57
externally we continue to develop our community relations practices 
through engaging with key organisations including 
•	 the international council on mining  metals 
•	 the world bank and 
•	 the global business coalition on hivaids t uberculosis and malaria
in 2011 we expect to have the opportunity to improve our performance 
by learning from the findings of a community benefit study conducted 
in 2010 by the tanzanian ministry of energy and minerals and the 
world bank the study assesses the impact of mining operations in 
tanzania and features our mines at bulyanhulu and buzwagi
stakeholder engagement
we 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 
and priorities this process involves identifying stakeholders engaging 
in disclosure and consultation processes and operating appropriate 
and effective feedback mechanisms we give specific consideration to 
inclusivity and gendersensitivity in all our activities
we maintain an ongoing dialogue with individuals community leaders 
government representatives and nongovernmental organisations 
furthermore we have
•	 established a formal grievance procedure which allows local 
stakeholders to have any complaints investigated and resolved
•	 trained and employed local community members to act as village 
liaison officers providing a twoway conduit of information 
and feedback
•	 created liaison centres within the communities around three of our 
mines to ensure that all community members have easy access to 
information about mine activities and
•	 used sports programmes to build local relationships and convey key 
messages on issues such as public health
performance
highlights from 2010 and our targets for 2011
focus achievements in 2010 targets for 2011
employees
improvements made to abg’s management team 
throughout the year and successful secondment 
programme to address personnel capacity issues faced  
at buzwagi
continue development of abg as an employer of choice 
and continue improvement of employee skillsets
health and safety
all of abg’s operations achieved one million working 
hours without lost time injuries in 2010
implementation of an abg health and safety plan  
that will emphasise developing leadership skills in  
line management common ohs standards and 
continued development of tanzanian employees  
in the ohs profession 
environment
improvements in hydro carbon management and 
changes in the type of energy used at our operations have 
resulted in significant energy efficiencies and reduction 
in carbon dioxide emissions
continued improvement in energy efficiency and  
further reduction in carbon dioxide emissions
community relations
the establishment of a formal site grievance mechanism 
this allows us to address concerns raised by stakeholders 
in an appropriate and constructive manner
devote additional resources to community relations 
at exploration and development projects
this calls for effective collaboration and engagement 
with key stakeholders in my role i look at how 
we can form partnerships to deliver sustainable 
community development initiatives to enhance 
health education water and sanitation provision 
tripartite partnerships involve the community 
government authorities and development partners  
in order to bring together the key ingredients 
for success
during 2010 i began leading abg’s workstream 
to conduct health impact assessments around all 
our operations and projects working together with 
the government these studies will help us map out 
the health challenges facing our host communities 
and ensure that we are focusing our public health 
initiatives appropriately
stephen kisakye abg community  
health and development coordinator 58
wwwafricanbarrickgoldcom
at north mara we have assisted local businessmen in forming a 
chamber of commerce and the establishment of a savings and credit co
operative which provides microfinance at bulyanhulu we assisted with 
the formation of the ibuka a local community cooperative whose 
5288 members from 12 villages benefit from the income they generate 
from the labour and business services they provide to the mine
community development
leaving a positive legacy requires a strong understanding of the social 
and economic relationships between our mines and the surrounding 
communities a sustainable legacy also represents a shift from a traditional 
philanthropic approach to strategic social investment partnership 
development and integration with the tanzanian government’s 
development plans
our community relations teams work closely with host communities 
to create and implement integrated development programmes that 
take local priorities concerns and needs into account and focus on 
longterm sustainable development our operations seek to tackle the 
ongoing challenges of poverty illegal activity and inadequate social 
service provision in doing so we liaise closely with local government 
authorities as well as a broad range of development partners 
education
we believe education and economic progress go hand in hand and 
work closely with the tanzanian education authority to support 
the government’s priorities and programmes abg supports the 
development of school infrastructure in host communities and helps 
to facilitate stronger school attendance through the provision of 
educational scholarships 
at bulyanhulu the mine’s scholarship programme enables company 
employees to become actively engaged in assisting the local community 
and is now receiving further support through funds raised by barrick 
employees based in canada at north mara we are working with the 
local government authorities to find a comprehensive solution to 
previous challenges faced by minecommunity educational initiatives 
community health
in addition to its employee health programmes abg continues to be 
recognised for its support of public health initiatives we have built 
strong partnerships with government health authorities and a range of 
nongovernmental organisations in order to combat hiv  malaria and 
tuberculosis and to improve access to health services examples of these 
partnerships include 
•	 hiv awareness programmes condom provision and training 
of peer health educators with engender health and population 
services international
•	 provision of a farm to shidepha a local health ngo to enable 
incomegeneration by persons affected by hivaids
•	 advocacy and awarenesscreation for malaria prevention with 
malaria no more
•	 training in dental services for government clinical officers by 
bridge2aid
•	 surgery for burns and cleft palates by volunteer surgical missions 
australiatanzania and 
social impact identification and mitigation
identifying and mitigating any potential negative impacts of our 
operations is at the heart of our approach to community relations we 
acknowledge that largescale mining operations in rural communities 
can have negative as well as positive implications for local residents  
so our commitment is to strive to minimise any negative impact  
while ensuring that the opportunities our operations present result  
in a positive legacy for our host communities
we believe that the foundation of effective community relations 
involves embedding social impact identification and mitigation in 
our daytoday operations and making these integral elements of the 
way that we operate from the exploration stage right through to mine 
closure some specific examples of this approach include 
•	 comprehensive social impact assessments conducted at the 
feasibility stage and systematically updated during the life of mine
•	 involvement of the community relations function in all risk 
assessments
•	 efforts to avoid or at least minimise involuntary resettlement by 
exploring alternative project designs whilst also addressing legacy 
challenges from previous resettlement programmes
•	 our multifunctional workstream on road safety
•	 collaboration with the exploration team on community engagement 
and influx management and 
•	 alignment with the security team on our approach to illegal mining 
and trespassing and the protection of human rights through the 
voluntary principles see security and human rights
during 2010 we commenced a workstream to conduct health impact 
assessments hia at all abg operations and development projects to 
assess potential impacts on public health and to inform our community 
health programmes 
local employment and procurement
increasing ‘local content’ has been recognised as a key opportunity for 
mining operations to serve as catalysts for local economic development 
and within abg increased focus has been put on local employment 
and local procurement jobs and business opportunities are both key 
benefits that our host communities expect to secure
abg seeks to recruit from our host communities as much as possible 
however the low education levels in some of the rural areas in which 
abg operates makes always hiring locally a challenge as one means of 
addressing this abg has provided funding for a national programme to 
develop the skills required by tanzania’s mining sector the integrated 
mining technical training imtt programme which commenced in 
2008 is a joint project of the tanzanian chamber of minerals  energy 
and the tanzanian government we provide sponsorships to young 
people living near our operations to attend imtt and we offer them 
the possibility of employment at our operations upon the successful 
completion of their programmes 
we attempt to give preference to purchasing goods and services 
locally or regionally we have held information seminars in our host 
communities explaining the breadth of business opportunities available 
as well as the process required to become a supplier to abg 
corporate responsibility continued annual report and accounts 2010
59
overview governance financial statements shareholder information performance
as part of abg’s commitment to development and training we 
encourage and sponsor employees who wish to pursue fulltime 
parttime or online studies at present over 100 students are using our 
employee study assistance programme in universities across the world 
and we have disbursed approximately £130000 on employee study 
assistance we also facilitate payments for membership of professional 
bodies for all employees
our commitment is not confined just to our employees w e also offer a 
variety of career starters’ programmes that enable t anzanian citizens to 
commence their careers in the mining industry  give them an opportunity 
to gain practical experience and offer sponsorships for professional training 
we have memoranda of understanding in place with the university 
of dar es salaam’s college of engineering and technology and with 
muhimbili university of health and allied sciences these allow us 
to provide training opportunities for students in areas close to our 
operations a scholarship programme for lecturers project sponsorships 
and bursaries for the bestperforming students and laboratory 
equipment for the universities hundreds of students have benefited 
from these programmes and sponsorships and we are proud to 
announce that two recipients of our scholarships recently completed 
their masters in metallurgy and mining engineering from the 
laurentian university in canada and are now assistant lecturers at the 
university of dar es salaam in tanzania
while expatriates are often necessary for the design and construction 
phase of a mine’s development when possible we reduce their numbers 
as the mine goes into production it is our goal to employ expatriates 
only when needed 
environment
our environmental policy drives our commitment to responsible 
environmental management and wise environmental stewardship 
w e are in the process of implementing an environmental management 
system at each of our operations to complement our existing 
environmental reporting going forward this system will set the 
standards for our environmental conduct existing environmental 
reporting systems and procedures record all significant environmental 
impacts and incidents and track our corrective measures and 
actions taken across all our sites in addition regular thirdparty 
audits are undertaken to give us an independent assessment of our 
environmental performance
materials
we use ore and process materials such as consumables and reagents to 
extract copper and gold and to produce gold doré key consumables 
used are fuels explosives cyanide nitric acid sodium hydroxide 
lime and grinding media we have processes in place to manage all 
consumables and we actively seek to use best practice in transporting 
and storing consumables and reagents 
•	 training and staffing of government health facilities with the 
touch foundation
our community health initiatives also provide an opportunity for 
us to involve our contractors and suppliers in benefiting our host 
communities for the past three years we have held a fundraising 
dinner in dar es salaam which has to date contributed us200000 
towards volunteer surgical missions australiatanzania for life
changing surgical operations
development and training
as largescale gold mining is a relatively new industry for tanzania 
we initially encountered a dearth of experienced mining professionals to 
meet the company’s requirements in response we have implemented 
a twopronged solution we are providing onthejob training to all 
employees and are working with technical colleges and universities to 
develop educational and training programmes that will produce a new 
wave of tanzanian mining professionals
as abg continues the expansion of our business operations we believe 
it is more important than ever to develop our human capital we are 
proud of our diverse workforce and strive to attract a broad mix of 
employees from both the traditional and nontraditional mining labour 
markets this approach reflects the company’s 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
we want to see our employees reach their full potential so we 
constantly seek to
•	 improve the workplace environment
•	 provide support tools and training for personal development
•	 actively provide opportunities for professional development and 
career advancement and 
•	 provide opportunities for assignments within the barrick group 
our twoyear compass graduate development programme aims to 
provide a structured development programme for new graduates 
developing their talent as a corporate worldwide asset the programme 
which attracts the best candidates from universities in tanzania 
focuses on developing graduate technical and leadership skills 
and blends ‘at the face’ work experiences with technical learning 
objectives in addition to formal training the graduates benefit from 
handson knowledge and experience of areas including courageous 
leadership frontline management continuous improvement 
presentation and communication skills fieldlevel risk assessment 
and incident investigation 
the management development programme and intermediate 
management development programme run by the university of 
cape town aim to equip managers with essential business knowledge 
basic management and leadership skills the supervisory leadership 
development programme helps potential supervisors acquire the 
skills necessary to managing others while the graduate diploma 
in engineering is a course designed to cater for the needs of our 
senior engineers  60
wwwafricanbarrickgoldcom
water
abg’s sites are situated in different climatic regimes buzwagi is in an 
area of low rainfall 700mm per annum while north mara experiences 
high rainfall 1300mm per annum w ater is mainly used for ore 
processing dust suppression and rock blasting we obtain our water 
from both surface and groundwater sources in 2010 abg used 48 
million cubic metres of makeup water at our operations 19 million 
cubic metres were sourced from groundwater and 29 million cubic 
metres from surface water
t otal water used 2010
in litres per tonne of ore processed
bulyanhulu 790
buzwagi 608
north mara 554
tulawaka 100 680
key
biodiversity
abg is involved in efforts to protect manage and reclaim lands we 
manage 15550 hectares of land that we either own or lease including 
surface rights and mineral rights of this land less than 18 has been 
disturbed for mining activities of the disturbed area 71 hectares have 
been reclaimed to agreed postmining uses
our biodiversity standard requires that we neither explore nor 
initiate mining within world heritage sites and that we respect the 
requirements of legally designated protected areas fauna and flora 
surveys are undertaken on an annual basis on all our sites
we remove and stockpile top soil from the areas disturbed by mining 
activities we have closure plans at each operation that aim to minimise 
the area disturbed and to mitigate our impacts leaving behind 
reclaimed lands that will support productive postmining land use 
reclamation occurs throughout the mine life 
energy
we obtain our energy from fossil fuels and purchased electricity 
direct energy produced and consumed within our operational 
boundaries includes fuel to run mobile equipment to produce power 
and heat onsite for the aircraft we operate and for explosives used to 
mine ore the largest consumption represents mobile diesel use and 
electricity generation indirect energy is also produced outside our 
boundaries comprising the power we purchase from tanesco this 
makes up 85 of our total electricity usage at our operations and is 
sourced largely from renewable hydropower 
w e examine opportunities to reduce reliance on diesel power generation 
where possible the north mara grid connection project is a key example 
of this north mara is currently running on an 8020 split with tanesco 
and has realised a 79 reduction in carbon emissions largely as a result of 
this project 
as part of our aim to conserve energy our operations are undertaking 
a large number of efficiency improvements having assessed their energy 
usage and identified areas for making improvements in consumption 
energy prole for operations for 2010
diesel 670
purchased electricity 317
explosives 10
propane petrol 
 other fuels 03
key
corporate responsibility continued
the international cyanide code guides 
best practice for transporting and using 
cyanide it is a voluntary initiative that is 
widely supported by major gold producers 
who maintain a registration with the 
international cyanide management 
institute icmi three of abg’s four sites 
are currently certified against this code and 
submit to regular independent thirdparty 
audits bulyanhulu and tulawaka have 
cyanide detoxification plants north mara 
will install a similar plant during 2011 and 
the buzwagi plant is undergoing upgrades 
to reduce cyanide levels in discharge and 
enable this code certification to be applied 
for by the beginning of 2012
the international cyanide code annual report and accounts 2010
61
overview governance financial statements shareholder information performance
at abg we place a strong emphasis on the training competence 
health and wellness of our employees as part of this we provide 
opportunities for learning as well as reinforcing and monitoring the 
application of learned skills and knowledge on the job
we have made a significant investment in procedures and controls and 
have implemented various health and safety training initiatives as a 
means of giving workers the skills and knowledge they need to perform 
their tasks in a safe and reliable way our commitment to health and 
safety is reflected in the significant safety milestones we achieved in 
2010 with each of our mines achieving one million working hours 
without losttime in injuries in addition abg in total completed the 
fourth quarter of 2010 without a losttime injury 
mine ltifr tifr hours worked
bulyanhulu 014 181 8486643
buzwagi 000 145 4565071
north mara 006 056 6470636
tulawaka 009 183 2183615
abg 008 136 21705965
despite the positive achievements of the past year there were four 
workrelated fatalities at bulyanhulu in 2010 on 16 march 2010 there 
was a rock fall incident at the bulyanhulu mine which resulted in three 
employee fatalities abg suspended mining activities for the rescue 
and recovery mission and also for a period of mourning on 18 march 
2010 mining activities were restored on 19 march 2010 however the 
areas affected by the rock fall remained closed until the completion of 
investigations into this incident a team composed of health and safety 
engineering and geotechnical experts from other barrick operations 
and support staff in toronto thoroughly investigated this incident as 
a result all underground work areas were assessed by a geotechnical 
expert before work was restarted with more extensive geotechnical 
evaluations following the initial assessment ground 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 regular inspections are made to ensure that both the correct 
ground support system is used and installed properly prior to this 
incident the abg group had experienced no employee safetyrelated 
fatalities since 2006
emissions effluents and wastes
w e monitor emissions effluents and wastes generated by our operations 
we track greenhouse gas ghg emissions and are actively working 
to improve our energy efficiencies and identify alternative technologies 
we also consider the management of climate related risks at all stages 
of our mine life cycles continued energy efficiencies and innovative 
energy strategies will serve to minimise ghg emissions of our total 
emissions for 2010 indirect ghg emissions make up 52 of the total 
and direct emissions 48
t otal ghg emissions 
in kilograms per tonne of ore processed
bulyanhulu 107
buzwagi 32
north mara 39
tulawaka 81
key
programmes are in place to manage dust hazardous and non
hazardous nonprocess waste waste rock and tailings the finely
ground material that remains after the crushed and slurried ore passes 
through the process our tailings storage facilities are subject to risk 
assessments and are independently audited on a regular basis in 
addition tailings storage facilities are subject to an annual review to test 
physical and chemical stability at bulyanhulu paste material is placed 
underground to fill the minedout voids on average 40000 to 50000 
tonnes of paste is backfilled into the mine each month this paste can 
contain up to 40 of tailings material thereby reducing the amount 
required to be stored above ground
health and safety
the health and safety of our workforce is a critical component of 
abg’s culture and we have a comprehensive health safety and 
risk management system for our underground and surface mining 
operations we also require all contractors to provide and maintain 
a safe and healthy work environment and ask that they meet as a 
minimum our health and safety standards
bulyanhulu’s community relations 
department is managing a project 
to produce biofuel for use at the 
mine employing 92 members of the 
neighbouring community and sourcing 
materials locally since 2007 121 
hectares have been planted with more 
than 200000 jatropha curcas plants 
by the end of 2016 the plantation will 
have increased to cover 1246 hectares 
containing over 55 million jatropha 
plants within the bulyanhulu lease area 
the first batch of oilbearing seeds is 
expected to be harvested in 2011
the jatropha biofuel project 62
wwwafricanbarrickgoldcom
health risk assessments form a key part of this 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 
recordkeeping and reporting health promotion employee assistance 
programmes mine life cycle planning and community health
we have also implemented hivaids awareness and prevention 
programmes as well as tuberculosis and malaria programmes 
for our employees their families and the local communities at all 
abg’s operating mines all of our mine sites also have clinics that 
provide voluntary counselling and testing for all employees and their 
families they also provide followup care and treatment for hiv
positive employees
security and human rights
we believe that effective security controls standards policies and 
procedures contribute to the safety and protection of our employees 
as well as the communities in which we operate 
operating in some areas of tanzania requires abg as well as the 
tanzanian government and the local communities to deal with law 
and order issues a number of these issues have been related to specific 
events such as instability in areas at the time of elections while others 
are longer term challenges such as events of trespass and vandalism by 
intruders seeking to unlawfully take gold and other property from abg 
operations these challenges vary depending on the location of the 
operation and other circumstances for example the north mara mine 
is located close to the tanzanian border with kenya which attracts a 
number of transients and illegal miners this area has had continuing 
law and order challenges including illegal intruders at the north mara 
mine at buzwagi in 2010 abg uncovered a syndicated theft ring 
involving employees collaborating with external parties to remove fuel 
from the operation abg has implemented and continues to identify 
alternatives to manage these security issues in a manner that places at its 
heart the safety and security of people property and assets
abg employs security staff retains security contractors and engages 
with the government of tanzania and the communities in which we 
operate since 2008 we have also introduced a comprehensive security 
management system with continuous training programmes in place at 
all our operations central to this are the voluntary principles these 
in addition one employee died while using a faulty electric kettle to 
heat water and as a result we implemented a robust inspection regime 
and conducted extensive retraining for our employees on using 
electrical appliances
having recognised that driving incidents account for half of all 
potentially dangerous incidents we have introduced a drive first 
initiative as part of a driving improvement programme to educate 
and help employees improve their driving the initiative has received a 
positive response from employees and has highlighted the importance 
of safe driving at our operations we are also in the process of installing 
advanced technology in our light vehicle and haul truck fleets that 
provides real time incab coaching to our operators so that safe driving 
behaviours are reinforced
we provide two day ‘courageous safety leadership’ training to 
employees and contractors at supervisor level where they are given 
the opportunity to focus on those personal actions and behaviours that 
promote the goal of ‘everyone going home safe and healthy every day’  
building on this training nonsupervisorlevel employees are provided 
with a oneday course and subsequent refresher training to build on the 
skills initially learned in the programme the programmes are designed 
to empower and encourage employees to take the initiative and reward 
them for identifying potential safety risks and speaking up when faced 
with a safety issue
another key initiative involves training employees in the use of 
riskmanagement tools this focuses on identifying new hazards and 
risks that result from changes and improvements to abg’s facilities 
designs and plans from exploration stage to closure it enables our 
people to assess such changes and their consequent impact on people 
environment processes equipment and facilities so allowing them to 
mitigate the challenges involved 
one of the most significant components of our health and safety 
management system is the global health programme which we are 
implementing to ensure compliance with international national and 
local legislation as well as abg’s own policies and standards the health 
programme emphasises health controls through a systematic approach 
to the anticipation identification evaluation control and monitoring of 
health hazards and exposures in the workplace the recent appointment 
of an occupational health manager for abg was made to help 
accelerate the implementation of this system
corporate responsibility continued
w e control our water resources carefully 
at all our operations and believe that 
water should be managed as a community 
resource respecting the rights of other 
water users our sites have conducted 
risk assessments related to water and 
we implement systematic monitoring 
programmes of water supply storage usage 
and discharge in a unique approach at 
buzwagi rainwater is collected by a 73 ha 
plastic lined area and stored in a covered 
1500000 m
3
 water storage pond for use as 
‘makeup’ water in the process much of the 
water we use is recycled through our process 
facilities for example at bulyanhulu up 
to 95 of the mine’ s water requirement is 
recycled through our practice of surificial 
paste technology in our tailings deposition
w ater conservation annual report and accounts 2010
63
overview governance financial statements shareholder information
addition in accordance with the mou the police are specifically 
required to receive human rights training before being assigned 
to the mine sites to our knowledge abg is the first and only 
private company to comprehensively engage with senior tanzanian 
government officials and local law enforcement agencies to encourage 
and support the provision of voluntary principles training to these 
agencies and the adherence to international human rights norms
abg’s private security employees and contractors also all receive 
training and regular refresher courses in the security management 
systems including human rights and use of force training security 
personnel comply with a strict use of force procedure that is compliant 
with the voluntary principles and has been validated by internal and 
external experts and shared with international human rights groups 
as a part of the voluntary principles process in addition security 
personnel are required at all times to comply with all applicable 
policies and procedures of abg including the abg code of conduct 
most importantly we maintain a continuous process of engagement 
with individuals and local community groups based in and around our 
mines in order to create an environment that is safe for our staff and 
the wider community as a whole
despite the challenges and as a result of the above initiatives the 
cooperation between abg and the police in working to develop 
community policing has led to a decrease of crime and violence in the 
general community also significant securityrelated incidents and 
production stoppages as a result of violent incidents at the mine have 
declined over the past two years and the overall security situation in 
the region and at the mines has improved in contrast to the situation 
experienced by some of the region during the 2008 elections the 
security environment during the 2010 elections was generally calm
are a set of guidelines by which companies in the extractive sector can 
maintain the safety and security of their operations within an operating 
framework that ensures respect for human rights and fundamental 
freedoms our majority shareholder barrick is a signatory participant 
and abg’s security management system adheres to this commitment to 
respect people and their rights as laid out in the voluntary principles 
we also continue to invest in security improvements including the 
installation of additional perimeter fencing and walls and cctv 
cameras in certain sensitive areas we also make efforts to educate the 
local community about the inherent safety dangers associated with 
illegal mining and intrusion on to the mine sites and operational areas 
abg supports the tanzanian police community policing unit and 
has assisted in establishing a pilot of community policing in the north 
mara area the community policing initiative was recognised by the us 
department of state in their 2009 human rights report on tanzania 
this programme is reflective of the fact that armed violence and 
criminality impacts not just on abg and its employees and contractors 
but also impacts negatively on the wider community and as such 
a community based solution is desirable 
we have entered into memoranda of understanding mous with the 
tanzanian police force for the provision of police force patrols in the 
general area surrounding the mines for the purpose of maintaining 
law and order the support provided by the mines is limited in scope 
and is conditioned upon police compliance with all relevant laws 
and international enforcement principles including the voluntary 
principles pursuant to the mous the police must follow all relevant 
domestic laws and must operate outside the mine sites except in 
emergencies when they are specifically called to enter the site in 
hivaids poses a significant threat not 
only to our employees but also to the 
communities in which our operations are 
located recent surveys indicate that the 
average prevalence rate for the regions 
in the lake zone of tanzania is 7 with 
some regions showing a prevalence of up 
to 96 these statistics show the need for 
comprehensive programmes to address 
this scourge
abg has made a concerted effort 
to combat hivaids by bolstering 
prevention initiatives and supporting 
care and treatment services to help 
prevent new infections abg has 
partnered with usaid engender health 
a renowned international ngo and 
deloitte  touche under an innovative 
public private partnership called the 
p3p project the objective is to train 
and empower volunteer peer health 
educators to provide information about 
hivaids to their colleagues and the 
broader community these peer educators 
emphasise the benefits of voluntary 
counselling and testing and condom use 
the programme has seen an increase in 
people’s knowledge about hivaids and 
a reduction in risky behaviour that pre
disposes individuals to hiv  abg provides 
condoms to community members
as a member of the global business 
coalition for tuberculosis aids 
and malaria abg has been able 
to join forces with other corporate 
members to define new strategies and 
integration opportunities
“ the hivaids fight is one 
that we can win but only with 
concerted and collaborative 
efforts from all stakeholders ”
stephen kisakye abg community 
health and development coordinator
addressing the challenge of hivaids
performance 64
wwwafricanbarrickgoldcom
committee participation and review 
the audit committee and environmental health safety security 
and csr committee ehss have active involvement in the risk 
management review process 
abg’s audit committee plays a key role in reviewing the effectiveness 
of the abg group’s internal control and financial reporting risk 
management systems as part of its responsibilities it approves the 
annual internal and external audit plan and reviews all material findings 
of the internal and external audit functions 
abg’s ehss committee reviews the effectiveness of the group’s 
environmental management programmes and systems and its health 
and safety systems it also receives reports from management on 
abg’s corporate social responsibility programme including significant 
sustainable development community relations and security policies  
and procedures 
where appropriate each of these committees reports to the board and 
makes recommendations to the board and management on any areas 
within its respective remit where action or improvement is needed 
implementation and application
abg’s management is accountable for the design and implementation 
of risk management processes and their consistent application to ensure 
that risk management compliance is embodied in the culture and 
practices of the abg group and its operations management ensures 
that relevant risk management matters are clearly communicated 
to all employees and ensures that all members of the corporate risk 
management function have unrestricted access to all personnel records 
and property of the group and are entitled to such information and 
explanations as may be required for review purposes 
management in consultation with abg’s risk management function 
is involved in a process of implementing and improving systems and 
procedures to ensure effective mechanisms are in place to identify and 
monitor risks internal and external to the group 
internal audit
abg’s head of risk and internal audit assists abg’s board and 
management in executing their responsibilities this function 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 the head of risk and internal audit is responsible for 
overview
to achieve its vision and strategy and to protect its key values abg 
is committed to establishing the most effective possible management 
of risk for this purpose since our ipo the board has adopted a risk 
management framework that incorporates the key requirements of iso 
310002009 uk corporate governance standards and other generally 
accepted governance principles in addition to abg’s code of conduct 
this framework includes the company’s risk management charter its 
risk management policy and a number of detailed risk management 
procedures all members of the abg group 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 
roles and responsibilities
responsibility for risk management is allocated between key functions 
and tiers of abg’s corporate governance structure to ensure that 
decisions taken that affect risk tolerance and mitigation remain prudent 
and effective 
oversight and review 
the board is responsible for defining abg’s risk appetite and tolerance 
and has overall responsibility for risk management compliance it 
approves all key components of abg’s risk management and internal 
control systems and is ultimately responsible for the effectiveness of 
these systems as part of its risk management function the board or 
its committees 
•	 approves abg’s risk management strategy and policies recommended 
by abg management and abg’s internal audit function
•	 monitors the abg group’s compliance with its risk 
management framework
•	 reviews abg’s significant business risks and internal controls
•	 ensures that appropriate action is taken in controlling 
significant risks
•	 conducts annual strategic risk workshops involving directors and 
abg management and 
•	 ensures that the head of risk and internal audit has the co
operation and support of abg management staff and all other 
relevant stakeholders 
significant risks for the abg group are assessed and reported on and 
the board receives quarterly reports on the status of the internal control 
environment through audit committee reports 
risk management
imperative to our strategy
effective risk management is imperative 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  annual report and accounts 2010
65
overview governance financial statements shareholder information performance
principal risks and uncertainties 
the group faces a variety of risks the occurrence of which could 
adversely affect its performance earnings financial position and 
prospects over the course of the year under review the group made 
material developments in the identification and management of its risk 
profile in order to focus on the most significant risks and events that 
could affect its operations financials and performance 
the following pages set out the principal risks affecting the abg group 
abg has taken a number of steps to mitigate some of these risks and 
will continue to evaluate ways in which it can manage and mitigate risks 
accordingly notwithstanding this due to the very nature of risks no 
assurance can be given that mitigating actions taken or planned will be 
wholly effective 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 these risks whether they materialise 
individually or simultaneously could significantly affect the group’s 
business and financial results in addition abg could also be affected 
by risks relating to the gold mining industry generally and the risks and 
hazards involved in the business of mining metals which are largely 
outside its control
•	 crafting a strategy for the implementation of abg’s risk 
management system
•	 reviewing and monitoring abg’s risk profile 
•	 considering the adequacy of risk treatment plans to address 
significant risks
•	 considering significant internal audit forensic audit and external 
audit findings and
•	 providing training and support in respect of the risk 
management framework 
policies
abg has adopted policies and procedures for the application of risk 
management in addition to those embodied in the risk management 
framework the company has adopted policies for environmental 
health and safety policies and systems charters and supply 
chain management
procedures
procedures have been adopted with the objective of ensuring that risks 
are managed at all appropriate levels of the business using processes 
based on identification analysis evaluation mitigation reporting 
and monitoring 
risk management evaluation process
communication  consultation
establish the
context
identify potential
consequences
risk identication identify causes inherent analysis
communication 
consultation
identify existing
controls
monitor  review risk evaluation risk treatment residual analysis assess the eectiveness
 eciency of
existing controls
an overview of the risk management evaluation process which has been adopted by abg is provided below 66
wwwafricanbarrickgoldcom
risk mitigationcomment potential impact further information
strategic risks
single country risk
all of the abg group’s revenue is derived 
from production at its four facilities in 
tanzania in order to ensure continued 
growth the group needs to identify new 
resources and development opportunities 
through exploration and acquisition targets
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
high a review of exploration activities 
and other growth opportunities is 
set out in the exploration review 
on pages 4447
reserves and resource estimates
the abg group’s stated mineral reserves 
and resources are estimates based on a 
range of assumptions including geological 
metallurgical and technical factors there can 
be no assurance that the anticipated tonnages 
or grades will be achieved
abg management has implemented a 
number of processes to continuously monitor 
and evaluate the current life of the company’s 
mine plans and production targets the abg 
group’s resources and reserves are updated 
annually abg follows ni 43101 of the 
canadian institute of mining metallurgy 
and petroleum when calculating its mineral 
reserves and resources
high details on the abg group’s 
reserves and resources are set out 
on pages 9699
financial risks
commodity prices
the abg group’s financial performance 
is highly dependent upon the price of gold 
and to a lesser extent the price of copper 
and silver the prices of these commodities 
are affected by a number of factors beyond 
abg’s control rapid fluctuations in pricing of 
these commodities will have a corresponding 
impact on abg’s financial position
abg’s strategic objective is to provide 
maximum exposure to the price of gold 
as such a nogoldhedging policy has been 
adopted abg has implemented a number 
of processes to assess its exposure to other 
commodity price fluctuations abg has 
entered into hedging facilities in connection 
with copper price fluctuations and is 
reviewing appropriate hedging facilities to 
assist in the management of exposure to other 
commodities such as diesel
high further information is set out in 
the financial review on page 48 
and the market review on pages 
1315
costs and capital expenditure
abg operates a cyclical business where 
fluctuations in operating cash flow and capital 
expenditure may adversely affect abg’s 
financial position
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 abg has also 
entered into a commercial credit facility 
to provide further support for working 
capital requirements
high further information is set out 
in the financial review on pages 
4854
risk management continued
principal risks and uncertainties continued  overview governance financial statements shareholder information
annual report and accounts 2010
67
performance
risk mitigationcomment potential impact further information
external risks
political legal and regulatory developments
the abg group’s exploration development 
and operational activities are subject to 
extensive laws and regulations governing 
various matters in the jurisdictions in which 
it operates changes to existing law and 
regulations or more stringent application or 
interpretation of current laws and regulations 
by relevant government authorities could 
adversely affect the abg group’s operations 
and development projects in particular as 
abg’s revenue is currently derived exclusively 
from the production 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 group may also be adversely affected 
by changes in global economic conditions 
political andor economic instability in 
tanzania or any of its surrounding countries
the group assesses legal and political risks 
as part of its evaluation of potential projects 
it actively monitors legal and political 
developments in countries in which its 
existing operations are located 
the group actively engages in dialogue with 
the tanzanian government and legal policy 
makers to discuss all key legal and regulatory 
developments applicable to its operations in 
particular developments in connection with 
the tanzanian mining act and applicable 
environmental legislation
high
taxation reviews 
the abg group’s financial condition may be 
adversely affected if it is unsuccessful in its 
current appeals andor its discussions with 
the tanzanian revenue authority regarding 
outstanding tax assessments and unresolved 
tax disputes namely in respect of fuel levies 
v at and certain corporate taxes
the abg group has entered into a series 
of ongoing discussions with the tanzanian 
government with the goal of resolving 
outstanding tax disputes and recovering 
amounts owed
high further information on the status 
of these discussions is provided 
on page 52
utilities supply 
power stoppages fluctuations and disruptions 
in electrical power supply or other utilities 
could adversely affect group operations and 
impact its financial condition in addition 
an increase in power costs would make 
production more costly and alternative power 
sources may not be available 
backup or alternative power generation 
have been implemented at north mara 
bulyanhulu and tulawaka abg is in the 
process of implementing additional power 
backup facilities to maintain critical systems 
at buzwagi
high further information on the status 
of power supply is provided on 
page 35
community relations
a failure to adequately engage or manage 
relations with local communities and 
stakeholders could have a direct impact on 
the abg group’s ability to operate at its 
existing operations
in addition to its existing corporate social 
responsibility programmes the group 
is implementing a number of additional 
initiatives to improve and build on local 
community relations and has increased its 
social management capacity
medium details of the group’s community 
relations activities are set out 
in the corporate responsibility 
section on pages 5659 68
wwwafricanbarrickgoldcom
risk management continued
risk mitigationcomment potential impact further information
operational risks
loss of critical processes
the abg group’s mining processing 
development and exploration activities 
depend on the continuous availability of 
its operational infrastructure in addition 
to reliable utilities and water supplies and 
access to roads any failure or unavailability 
of operational infrastructure for example 
through equipment failure or disruption 
could adversely affect production output 
andor impact exploration and development 
activities deficiencies in core supply chain 
availability could also adversely affect 
group operations
management assesses the critical components 
of abg’s operational infrastructure on a 
continuous basis in addition to external 
resources and when required abg has 
established channels through the support of 
the barrick group network to address critical 
disruptions to its technical services and plant 
equipment supply chain management and 
support are assessed and reviewed against 
business requirements on a regular basis
high risks relating to utility supply 
are summarised above further 
details of abg’s infrastructure 
and processes are summarised on 
pages 1819 35 and 83
environmental hazards and rehabilitation
the abg group’s activities are subject to 
environmental hazards as a result of the 
processes and chemicals used in its extraction 
and production methods the group may 
be liable for losses and costs associated with 
environmental hazards at its operations 
have its licences and permits withdrawn 
or suspended as a result of such hazards 
or may be forced to undertake extensive 
cleanup and remediation action in respect of 
environmental hazards and incidents relating 
to its operations any such action could 
have a material adverse effect on the group’s 
business operations and financial condition
the group has committed itself to the 
application of global standards and 
implementing relevant international council 
on mining and metal practices and the 
international cyanide code standards 
compliance with applicable environmental 
standards is assessed on a continuous basis 
remediation and rehabilitation costs are 
assessed and reviewed annually
high details of the abg group’s 
environmental activities and 
compliance programmes are set 
out in the corporate responsibility 
section on pages 5961
employees and contractors
the abg group’s business significantly 
depends upon its ability to recruit and retain 
qualified personnel in particular members 
of the senior leadership team 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
abg depends on certain key contractors 
interruptions in contracted services could 
result in production slowdowns and
or stoppages
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 work force it is also 
focused on furthering the nationalisation of 
its workforce in tanzania and participates 
in a number of training programmes to help 
develop local industry expertise
assessments of arrangements with key 
contractors are undertaken on a regular basis 
to ensure that contracted services and support 
meet business requirements and expectations
high further detail on employee 
arrangements and related 
initiatives is provided in the 
corporate responsibility section 
on pages 59 and the case study 
on pages 2021
principal risks and uncertainties continued  overview governance financial statements shareholder information
annual report and accounts 2010
69
performance
risk mitigationcomment potential impact further information
operational risks
security trespass and vandalism
abg faces certain risks in dealing with 
trespass theft corruption and vandalism 
at its mines and unauthorised smallscale 
mining in proximity to and on specific areas 
covered by abg’s exploration and mining 
licences the impact of such risks may have 
an adverse effect upon abg’s operations 
and financial condition 
the abg group has taken measures to 
protect its employees mines and production 
facilities from various security and theft risks 
steps include increasing existing security 
personnel the installation of additional 
perimeter fencing surveillance equipment 
and the imposition of additional security 
checks and procedures where appropriate 
the group continues to work in collaboration 
with local law enforcement to address 
securityrelated matters in addition abg 
adheres to the voluntary principles as part of 
its membership of the barrick group
high further information on security 
developments and initiatives 
can be found in the corporate 
responsibility section on  
pages 6263
health and safety infectious diseases
due to the nature of the group’s operations 
a wide range of occupational health diseases 
such as noiseinduced hearing loss and 
lung diseases pose a risk to the group’s 
workforce in addition tropical and infectious 
diseases such as malaria and hivaids 
pose significant health risks to the group’s 
employees due to the epidemic proportions 
that such diseases may have in areas at  
which the group’s operations are located  
the potential liabilities related to such diseases 
and the impact that these diseases may have 
on the group’s workforce may have an adverse 
effect upon the group’s operations and 
financial condition
the group 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 health and 
safety and risk management systems are in 
place onsite at all of abg’s operations 
medium further details of health and 
safety awareness programmes 
are set out in the corporate 
responsibility section on  
pages 6162 70
wwwafricanbarrickgoldcom
3
 kevin jennings age 41 chief financial officer
mr jennings is the chief financial officer of the abg group he was 
previously employed by barrick where he served from august 2009 
as vicepresident of corporate development mr jennings has held a 
variety of senior management positions in the mining industry over 
the last ten years including director business optimisation at xstrata 
plc director strategic business analysis at falconbridge ltd and 
chief financial officer at american racing equipment inc a wholly 
owned subsidiary of falconbridge mr jennings holds a bachelor of 
arts degree in economics from the university of western ontario and 
a bachelor of administrative studies with honours in accounting 
from y ork university he is a chartered accountant
nonexecutive directors
4
  derek pannell age 64 senior independent  
nonexecutive director
mr pannell is an independent nonexecutive director of the abg 
group mr pannell holds several other board appointments including 
agrium inc and is chairman of the board of directors of brookfield 
infrastructure partners lp  mr pannell was formerly president chief 
operating officer and chief executive officer of noranda inc and 
falconbridge ltd mr pannell is a metallurgical engineer with over 40 
years of experience in the mining and metals industry he is former 
chair of the mining association of canada and a board member of 
the international council on mining and metals mr pannell holds 
a bachelor of science degree in engineering from imperial college 
london england and is a professional engineer registered in quebec 
and peru he is also an associate of the royal school of mines and 
a fellow of the canadian academy of engineers
chairman
1
 aaron regent age 45 nonexecutive chairman
mr regent is a nonexecutive director of the abg group he has been 
the president and chief executive officer and a director of barrick 
since 2009 prior to joining barrick mr regent was senior managing 
partner of brookfield asset management and cochief executive 
officer of its infrastructure group mr regent previously served as 
president and chief executive officer of falconbridge ltd mr regent 
holds a bachelor of arts degree from the university of w estern ontario 
and is a chartered accountant
executive directors
2
 greg hawkins age 42 chief executive officer
mr hawkins is the chief executive officer of the abg group he was 
previously employed by barrick where since june 2006 he served as 
chief financial officer of the australia pacific business unit from 
1999 to 2006 mr hawkins served in finance management roles 
for barrick australiaafrica and for homestake mining before its 
acquisition by barrick mr hawkins also previously held roles as the 
finance manager for normandy mining and as an audit manager for 
deloitte he holds a bachelor of commerce degree from the university 
of western australia he is a chartered accountant and a member of 
the australian institute of company directors
board of directors
6 9 5 2 1 annual report and accounts 2010
71
overview performance financial statements shareholder information governance
8
 bobby godsell age 58 independent nonexecutive director
mr godsell is an independent nonexecutive director of the abg 
group he has held numerous senior chair and board positions 
including the former chairmanship of the world gold council 
presidency of the chamber of mines and nonexecutive chairmanship 
of eskom holdings ltd he has over 30 years of experience in the 
mining sector previously serving as director and chief executive 
officer of anglogold ashanti ltd and as a director of anglo american 
plc he holds a bachelor of arts degree from the university of natal 
south africa and a master of arts degree from the university of cape 
town south africa
9
 michael kenyon age 61 independent nonexecutive director
mr kenyon is an independent nonexecutive director of the abg 
group he is executive chairman of the board of directors at detour 
gold corporation chairman of the board of directors at troon 
ventures ltd and has more than 35 years of experience in the mining 
industry he has previously been president and chief executive officer 
at both canico resource corp and sutton resources ltd and a director 
of cumberland resources ltd he is a geologist by training and holds 
a master of science geology degree from the university of alberta 
in canada he was also the recipient of the 2005 developer of the y ear 
award from the prospector and developers association of canada in 
recognition of his accomplishments
5
 james cross age 62 independent nonexecutive director
mr cross is an independent nonexecutive director of the abg 
group he is also a board member of the financial services board of 
south africa deputy chairman of the policy board of south africa 
chairman of the financial markets advisory board and nonexecutive 
chairman of swiss gold dmcc dubai he was formerly senior deputy 
governor of the south african reserve bank chairman of highland 
gold mining ltd and a director of namakwa diamonds ltd and 
mks finance geneva he has a bachelor of commerce degree from 
the university of witwatersrand south africa and is a fellow of the 
institute of bankers of south africa
6
 andre falzon age 56 independent nonexecutive director
mr falzon is an independent nonexecutive director of the abg 
group he is a financial consultant and a director of aurizon mines 
ltd mr falzon is a senior financial executive with over 25 years of 
financial and management experience within the mining industry 
including a period as vice president and controller at barrick between 
1994 and 2006 he holds a bachelor of commerce degree from the 
university of toronto canada and is a certified general accountant 
canada and a chartered accountant canada
7
 stephen galbraith age 39 nonexecutive director
mr galbraith is a nonexecutive director of the abg group he has 
been employed by barrick since august 2000 in treasury and finance 
functions and is currently managing director of barrick international 
barbados corporation mr galbraith previously held the role of audit 
manager for pricewaterhousecoopers he holds a bachelor of arts 
degree in accountancy from strathclyde university is a member of 
the institute of chartered accountants of scotland and is a chartered 
financial analyst charterholder
committee members 
ehss committee 
bobby godsell chair  
derek pannell stephen galbraith
audit committee 
andre falzon chair james cross 
michael kenyon
compensation committee 
michael kenyon chair  
aaron regent andre falzon  
james cross
nomination committee 
derek pannell chair  
stephen galbraith bobby godsell
4 8 7 3 72
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katrina white age 35 general counsel and company secretary
ms white is the general counsel and company secretary of the abg 
group ms white was previously employed by barrick for the last five 
years where she served as regional general counsel and company 
secretary for barrick australia africa subsequently barrick australia 
pacific and as a director of barrick’s subsidiaries in the region since 
2006 prior to joining barrick ms white was employed as a senior 
associate at hunt  humphry in australia ms white has an honours 
degree in law from the university of western australia she is admitted 
to practise as a barrister and solicitor in western australia the high 
court of australia and the federal court of australia 
andrew w ray age 47 head of corporate development and  
investor relations 
mr wray is the head of corporate development and investor relations 
for the abg group he was previously employed by jp morgan 
cazenove where he was a director in the corporate finance team 
mr wray has over 10 years of experience in advising a range of mining 
and other companies in their capitalraising activities and in other 
strategic objectives prior to joining jp morgan mr wray worked for 
the kuwait investment office in london dealing with their portfolio 
of investments in spain mr wray holds a bachelor of arts honours 
degree in modern languages from university college london
kobus van vuuren age 51 head of human resources 
mr van vuuren is the head of human resources of the abg group 
he is responsible for overseeing all human resource activities as well 
as the management of the johannesburg office prior to joining barrick 
mr van vuuren was senior director human resources and services 
at midroc gold ethiopia and occupied various managerial positions 
over the previous 24 years at anglogold and harmony gold he joined 
barrick in 2007 as human resource manager at north mara and 
served in a number of capacities including organisational effectiveness 
manager and mine general 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 
training and development and industrial relations he is a member 
of the society for human resource management shrm
in addition to abg’s executive directors listed on previous page 
senior management includes the following 
marco zolezzi age 55 chief operating officer
mr zolezzi is chief operating officer of the abg group mr zolezzi 
was previously employed as director of technical services for barrick’s 
australia pacific region for the last four years prior to that mr zolezzi 
held a number of senior project roles in the industry including five 
years with newcrest mining where he was general manager at the 
telfer mine taking it from the project stage through to full production 
as well as 13 years with wmc resources in a number of senior 
operational and technical roles in total mr zolezzi has over 30 years 
of experience in complex open pit and underground operations in 
australia and south africa with a variety of operational technical and 
project management roles in addition to diplomas in mining and 
mechanical engineering from witwatersrand institute of technology 
in south africa mr zolezzi holds bachelor degrees in applied science 
mechanical from the new south w ales institute of technology and 
in applied science mining from the western australian institute 
of technology
deodatus mwanyika age 48 vice president corporate affairs
mr mwanyika is the vice president corporate affairs of the abg 
group he was previously employed by barrick which he joined in 
1999 as a legal consultant and where he occupied various managerial 
positions in the last 11 years culminating in his appointment in 2008 as 
executive general manager tanzania mr mwanyika holds a bachelor 
of law degree with honours from the university of dar es salaam and 
a masters in law from the university of cambridge mr mwanyika 
is a member of the tanganyika law society and the east african 
law society
peter spora age 41 vice president exploration
mr spora is the vice president exploration of the abg group he was 
previously employed by barrick where he served as principal geologist 
africa from 2006 to 2008 and exploration manager africa since 2008 
mr spora has over 15 years of experience as a geologist in australia 
and africa he holds a bachelor of applied science in geology degree 
from the university of technology sydney australia he is currently 
the chairman of the exploration committee of the tanzanian 
chamber of minerals and energy and is a member of the society of 
economic geologists
senior management annual report and accounts 2010
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overview performance financial statements shareholder information governance
all abg employees and directors must comply with these policies 
and procedures and with any additional applicable policies 
overall responsibility for the governance of the abg group lies 
with the board which intends wherever possible to comply with the 
main principles of the combined code and the new uk corporate 
governance code which will apply to future reporting years it will 
also review other international standards as appropriate for abg’s 
operations as part of its corporate governance compliance obligations 
the board is required to explain how it applied the main principles of 
the combined code during 2010 the relevant statement of compliance 
and any departures from governance requirements that occurred are 
explained below
board composition
the board reviews its composition and balance on a regular basis 
the board currently comprises a nonexecutive chairman two 
executive directors and six nonexecutive directors of whom five are 
independent for the reporting period the board considers that this 
is the appropriate structure and board balance between executives and 
nonexecutives for abg to achieve its objectives
abg regards all of its nonexecutive directors other than aaron 
regent and stephen galbraith as independent within the meaning 
defined in the combined code the board regards andre falzon as 
independent within the meaning of the combined code although he 
was an employee of the barrick group until 2006 and then provided 
consultancy services to the barrick group until 2008
corporate governance report
fully committed to the highest standards
2010 highlights and performance
as this is abg’s first year as a listed company the board focused 
its attentions in 2010 on developing and confirming measures 
that support its effectiveness and strengthen the company’s 
internal control and risk management systems to this end the 
board and its committees have
•	 undertaken assessments of abg’s key risks mitigation and 
process evaluation
•	 conducted a review of internal systems and controls in line 
with turnbull guidance requirements
•	 commenced the review of requirements for board evaluations 
and succession planning and
•	 progressed the implementation of reporting procedures and 
processes over and above those financial reporting procedures 
implemented as part of the ipo process
good governance is fundamental to 
the success of abg’s business and its 
relationships with key stakeholders 
derek pannell  
senior independent nonexecutive director
abg approach to governance
abg committed to the highest standards of corporate governance 
at the time of its ipo the company adopted a number of procedures 
throughout the course of 2010 to underpin its governance systems 
and structure these measures will remain under review and 
additional processes will continue to be considered and developed to 
ensure that abg’s approach to governance is appropriately aligned 
with its operating environment its performance needs and its 
strategic requirements
abg has adopted a code of conduct as well as a number of other 
policies and procedures including an antibribery and anticorruption 
policy a disclosure and communications policy and a securities 
dealing code to support its governance framework   74
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corporate governance report continued
•	 policies and procedures and
•	 changes to the composition size and structure of the board 
the board delegates certain matters to its committees further details of 
each committee are set out on pages 78 to 80 of this report in addition 
the board has approved a delegation of authority to officers and 
managers of the group for specific matters required for the daytoday 
functioning of the company’s business 
chairman and chief executive officer
in line with best practice the roles of chief executive officer and 
chairman and their related responsibilities are separated accordingly 
the divisions of responsibilities have been set out in writing and agreed 
by the board
abg’s chairman 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 
company’s strategy and overall commercial objectives the chairman 
is responsible for setting the board agenda leading its discussions and 
ensuring effective communication with shareholders the chairman 
promotes the highest standards of integrity probity and corporate 
governance throughout abg particularly at board level 
abg’s chief executive officer is responsible for all executive 
management matters affecting abg and is principally responsible 
for running the company’s business all members of executive 
management report directly to him 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 group affairs are conducted with the 
highest standards of integrity probity and corporate governance 
senior independent director
derek pannell is abg’s senior independent director as part of his 
responsibilities mr pannell is available for discussions with other non
executive directors who may have concerns which they believe have 
not been properly considered by the board as a whole mr pannell is 
available as an alternative point of contact for the executive directors 
if required in addition to the normal channels of the chairman and 
chief executive officer mr pannell is also available to shareholders 
if they have concerns that have not been resolved by contact through 
the normal channels of chairman chief executive officer or other 
executive directors or where such contact is inappropriate 
the senior independent director at least annually and on other 
occasions as deemed appropriate leads a meeting of the non
executive directors without the chairman present to appraise the 
chairman’s performance 
senior leadership t eam
daytoday management of the group’s business and operations is 
delegated to the executive directors and the other senior executives 
who form abg’s senior leadership team this team comprises
•	 chief executive officer
•	 chief financial officer
board composition
executive
nonexecutive
key
board independence
independent
nonindependent
key
board skills
geology
engineering
financial
african operations
key
all of the directors have considerable knowledge and experience in 
the mining industry and bring other relevant experience to the board 
to assist abg in achieving its strategic goals director biographies are 
provided on pages 7071 
leadership structure
role of the board
the board is responsible for the overall management of the 
abg group as well as for setting abg’s strategy and monitoring its 
implementation as part of these requirements the board is required to 
set abg’s standards values and strategic aims it must also ensure that 
the necessary financial and human resources are in place for abg to 
meet its objectives 
the board focuses on strategic issues financial performance risk 
management and critical business issues it has a formal schedule of 
matters that are specifically reserved for its decision including the 
review andor approval of
•	 the extension of the group’s activities into new business or 
geographic business
•	 mergers and acquisitions activity and material capital projects
•	 material capital raising
•	 major changes to the group’s corporate structure
•	 the group’s internal control and risk management systems 
financial reporting and controls
•	 corporate governance systems annual report and accounts 2010
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overview performance financial statements shareholder information governance
in addition to scheduled board meetings all directors have access 
to members of the senior leadership team and to whatever further 
information they need to perform their duties and to satisfy their 
responsibilities abg’s independent nonexecutive directors and 
committee chairmen meet with members of the senior leadership 
team to receive more indepth briefings on board and committee 
matters whenever required or requested 
the chairman and the company secretary review training and 
development needs the induction training and process for new directors 
is under development all existing directors and members of the senior 
leadership t eam participated in induction training which included 
briefings on the responsibilities of directors of a uk listed company prior 
to the ipo during the course of 2010 a number of directors undertook 
operational site visits all directors continue to have free access to visit 
operations outside scheduled board arrangements 
directors may take independent professional advice as necessary at 
abg’s expense in the furtherance of their duties in addition to this 
each board committee is entitled to seek independent professional 
advice at abg’s expense where necessary to assist or guide the 
committee in the performance of its functions 
board meetings and attendance
the board is scheduled to meet at least four times a year and at such 
other times as are necessary to discharge its duties 
the attendance record for each director for 2010 is shown below the 
board met on five occasions during 2010 of which one meeting related 
to specific ipo matters 
prior to the ipo catherine boggs and paul buchanan were appointed 
as nominee directors of abg catherine boggs was appointed on 
14 january 2010 and resigned from the board on 19 january 2010 as 
part of ipo preparations paul buchanan was appointed on 19 january 
2010 and resigned from the board on 15 february 2010 as part of ipo 
preparations of the nominee directors only paul buchanan attended 
a board meeting for the purposes of resignation 
•	 chief operating officer
•	 general counsel
•	 vice president exploration
•	 vice president corporate affairs
•	 head of corporate development and investor relations and
•	 head of human resources
the senior leadership team meets regularly and is responsible for 
monitoring the detailed performance of all aspects of abg’s business 
board effectiveness
decision making
board decisions are predominantly made by achieving a consensus at 
board meetings in exceptional circumstances decisions may be taken 
by the majority of board members questions arising at any meeting 
are determined by a majority of votes in the case of an equality of 
votes abg’s articles of association do not provide the chairman with 
a second or casting vote all directors are required to take decisions 
objectively and in the best interests of the company 
abg’s nonexecutive directors are expected to apply independent 
judgement to contribute to issues of strategy and performance and 
to scrutinise the performance of management 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 
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 group board and 
committee papers are circulated prior to all meetings to allow directors 
to be briefed in advance of discussions all board meetings include a 
quarterly business and financial review to ensure that in addition to 
specific scheduled matters and any other business core operational 
matters are reviewed on a continuous basis 
board meetings audit committee compensation committee nomination committee ehss committee
number 
attended
maximum 
possible
number 
attended
maximum 
possible
number 
attended
maximum 
possible
number 
attended
maximum 
possible
number 
attended
maximum 
possible
aaron regent 5 5 0 na 4 4 1 na 0 na
greg hawkins 5 5 2 na 3 na 1 na 3 na
kevin jennings 5 5 4 na 0 na 0 na 0 na
derek pannell 4 5 0 na 0 na 1 1 2 3
james cross 5 5 4 4 4 4 0 na 0 na
andre falzon 5 5 4 4 4 4 0 na 0 na
stephen galbraith 5 5 0 na 0 na 1 1 3 3
bobby godsell 4 5 0 na 0 na 0 1 2 3
michael kenyon 5 5 4 4 4 4 0 na 0 na
note na indicates where a director is not a member of a committee and thus not obligated to attend meetings 76
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corporate governance report continued
going concern
the board’s statement on going concern is included in the financial 
review on page 54 
relationship with shareholders
dialogue with the investment community
members of the board and senior management met with a number 
of international investors as part of abg’s ipo process since the 
ipo abg has established a headquarters in london and appointed 
a head of corporate development and investor relations to manage 
and develop the company’s investor relations programme the 
head of corporate development and investor relations 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 during the course of 2010 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 group performance and respond to queries 
abg also conducts periodic telephone calls and meetings with the 
investment community to discuss results and participates in mining 
conferences to meet with current and prospective investors 
in addition to its annual and halfyear reports abg publishes quarterly 
reports to the market which provide further information on production 
and financial results and updates on its business and operations 
majority shareholder
abg was a wholly owned subsidiary of barrick prior to its ipo barrick 
continues to hold approximately 74 of abg making it the group’s 
majority shareholder as a result of this relationship abg continues 
to have access to the barrick group for a number of support services 
and receives strategic shareholder support for its initiatives and goals 
abg 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 group 
and that transactions and relationships with the barrick group 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 combined code it has also agreed that it will not 
exercise its voting rights or powers which would cause abg to breach 
any of the key eligibility criteria for its listing 
barrick is entitled to appoint directors 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 nonexecutive directors and the maximum number of non
executive directors that may be appointed while ensuring that the 
composition of the board remains compliant with the combined 
code to the board for so long as barrick holds an interest in 40 
or more of the issued share capital or voting rights of abg
performance evaluation
the majority of the directors were appointed in february 2010 as 
part of the corporate governance preparations for the ipo in view of 
this the board believes that a meaningful evaluation of performance 
can only take place once the new board has had a reasonable amount 
of time to work together an evaluation process will therefore be 
implemented in the first half of 2011 for all of the board members 
including the chairman
retirement and reelection
under abg’s articles of association all directors are subject to 
retirement and reelection by the shareholders at the first annual 
general meeting following their appointment and every three years 
thereafter as such all members of the board will offer themselves for 
reelection at the forthcoming agm having been appointed by the 
board during the year
internal control
the board is responsible for the abg group’ s system of internal control 
and risk management and for reviewing its effectiveness in line with 
this responsibility the board has established ongoing processes and 
systems for identifying evaluating and managing those significant risks 
that the group faces these systems were put in place as part of the ipo 
process and their implementation has been progressed throughout the 
year abg’ s system of internal controls and risk management takes into 
account the recommendations contained in the t urnbull guidance on 
internal systems and controls published by the financial reporting 
council in october 2005 the ‘t urnbull guidance’ the system is 
designed to manage rather than eliminate the risk of failure to achieve 
abg’ s business objectives and can only provide reasonable and not 
absolute assurance against material misstatement or loss
the board principally bases its monitoring of internal controls on its 
review of management reports and assessments and on the quarterly 
reports it receives on the status of abg’s internal control environment 
this is supported by the risk profile reviews that abg’s internal audit 
function carries out to help the board identify and manage the most 
significant risks and events that could affect the company’s operations 
financials and performance where necessary the board is assisted by 
its committees in reviewing internal systems and controls particularly 
the audit committee which is responsible for reviewing the effectiveness 
of the group’s internal control and financial risk management systems 
an overview of abg’s risk management systems and procedures is 
provided on page 64
in compliance with its obligations the board has conducted an annual 
assessment of the effectiveness of the company’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 audit function and members of the 
senior leadership team 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 during 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 annual report and accounts 2010
77
overview performance financial statements shareholder information governance
greg hawkins kevin 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 companies act 2006 requires directors to avoid situations where 
they have or can have a direct or indirect interest that conflicts or 
may possibly conflict with company interests however the act does 
allow directors of public companies to authorise conflicts and potential 
conflicts of interests 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 our ipo 
the monitoring and if appropriate authorisation of any actual or 
potential conflict of interest is an ongoing process directors are 
required to notify the company of any material changes in positions 
or situations that have already been considered and any new situations 
in addition directors are required to declare interests in potential or 
actual transactions and are required to abstain from voting on such 
transactions subject to permitted exceptions if a question arises as 
to whether any interest of a director prevents him or her from voting 
or being counted in a quorum in the context of a potential or actual 
transaction the matter is referred to the chairman whose findings are 
final and conclusive in the context of questions relating to any such 
conflict of the chairman the question may ultimately be decided by 
a resolution of the other directors 
specifically as regards directors appointed by barrick the relationship 
agreement provides that if any transaction or arrangement arises 
directly between a member of the barrick group and a member of the 
abg group and does or could in the opinion of a majority of directors 
excluding any directors appointed by barrick give rise to a conflict 
of interest between abg and any director appointed by barrick any 
such matter must be approved and authorised at a duly convened 
board meeting or in writing by a majority of directors excluding any 
directors appointed by barrick prior to the company taking further 
action in relation to such matter
save for the matters set out above none of the directors has any 
notifiable conflict of interests between their abg duties and their 
private interests or other duties during the reporting period
•	 two nonexecutive directors and one less than the maximum 
number of nonexecutive directors that may be appointed while 
ensuring that the composition of the board remains compliant with 
the combined code for so long as it has an interest in 25 or more 
of the issued share capital or voting rights of abg and
•	 one nonexecutive director and two less than the maximum number 
of nonexecutive directors that may be appointed while ensuring that 
the composition of the board remains compliant with the combined 
code 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 group shall not carry on the exploration of 
gold or silver in africa or acquire whether through an asset purchase 
or the purchase of securities a gold or silver mining business in africa 
which competes with the company 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 
group shall pursue the opportunity unless the company subsequently 
decides not to pursue the opportunity or fails to do so within a 
reasonable period of time
abg 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 london stock exchange and barrick owns or controls in aggregate 
15 or more of its issued share capital or voting rights
agm
abg’s first annual general meeting as a uk listed company will 
be held on 21 april 2011 at 200pm london time the business of 
the meeting will be conducted in accordance with companies act 
2006 requirements and standards promoted by the uk corporate 
governance code the chairman and the chairmen of each of abg’s 
board committees will be available to answer questions put to them 
by shareholders at the meeting the agm notice is included in the 
documentation which has been provided with this report and is also 
available on the company’s website in accordance with best practice 
the notice has been sent to shareholders at least 20 business days prior 
to the date of the meeting 
conflicts of interest
aaron regent and stephen galbraith are nominee directors appointed 
by barrick in line with its rights under the relationship agreement 
these individuals hold a number of crossdirectorships with members 
of the barrick group in particular mr regent is chief executive 
officer of barrick and mr galbraith is managing director of barrick 
international barbados corporation these directorships and 
positions give rise to situations in which these directors could have a 
direct or indirect interest that conflicts or possibly may conflict with 
those of abg 78
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corporate governance report continued
activities
as 2010 represents abg’s first year as a listed company the committee’s 
focus for the year was on the development and progression of internal 
controls and audit procedures suitable for abg’s status key work 
undertaken by the committee included the following
•	 c o ns ider a t io n 	 a n d 	 a p p r o v a l 	 o f 	 t h e 	 i n t ern a l 	 a ud i t 	 p la n the committee 
met regularly with the head of risk and internal audit to review 
and progress the group’s internal audit charter and internal audit 
uk corporate governance compliance
abg corporate governance practices are structured so as to comply 
wherever possible with the requirements of the combined code and 
the new uk corporate governance code for the year under review 
this corporate governance report explains our governance structure on 
the basis of the requirements of both the combined code and the uk 
corporate governance code for listing rule disclosure purposes this 
compliance statement focuses on relevant confirmations in respect of 
the combined code going forward abg will only report against the 
uk corporate governance code this being the version of the code that 
applies to accounting periods beginning on or after 29 june 2010
abg’s shares were admitted to trading on the main market of the 
london stock exchange and to the official list of the united kingdom 
listing authority on 24 march 2010 since abg was listed for only part 
of the year this report explains how abg has applied and complied 
with the main principles of the combined code from the date of its 
listing and throughout the following months of the reporting period 
since its listing abg has also complied with the detailed provisions of 
the combined code save in the following respects
•	 abg’ s chairman mr regent was not independent on appointment 
the directors consider that given mr regent’ s expertise in the industry 
his familiarity with the assets comprised within the abg group and 
his leading role with barrick his presence as chairman is in abg’ s best 
interests even though he was not independent on appointment within 
the meaning of the combined code
•	 the board and chairman’ s evaluation have yet to be undertaken 
as all members of the board were appointed for purposes of the 
ipo in januaryfebruary 2010 the board believes that a meaningful 
evaluation of performance can only take place once the directors have 
had a reasonable amount of time to work together an evaluation 
process will therefore be implemented in the first half of 2011 for all 
of the board members including the chairman
abg’s external auditor has reviewed those parts of this statement which 
it is required to review under the listing rules of the united kingdom 
listing authority 
board committees
the board has established an audit committee a compensation 
committee a nomination committee and an ehss committee
audit committee
meetings and attendance
the committee met four times during the year details of members’ 
attendance can be found on page 75 
the committee has asked the chief financial officer the abg group’s 
financial controller members of the treasury function the head of 
risk and internal audit and the external auditor to attend committee 
meetings on a regular basis during the year the committee held 
individual meetings with abg’s external auditors and the head of 
risk and internal audit without management present abg’s auditors 
and the head of risk and internal audit have direct access to the 
committee chairman
audit committee
andre falzon audit committee chair
members and responsibilities
the audit committee is chaired by andre falzon its other 
members are james cross and michael kenyon all committee 
members are determined to be independent in accordance with uk 
corporate governance requirements mr falzon is a senior financial 
executive with over 25 years of practical financial and management 
experience within the mining industry he is also a member of 
the certified general accountants canada and the institute of 
chartered accountants canada as such the directors consider 
that mr falzon has recent and relevant financial experience for uk 
corporate governance purposes further details of the qualifications 
of each member of the committee are set out in the biographies 
contained on pages 7071
the committee is scheduled to meet at least four times a year and 
has responsibility for among other things
•	 reviewing the group’s financial statements and monitoring  
their integrity
•	 overseeing the group’s relationship with its external auditors
•	 reviewing the effectiveness of the external audit process and 
agreeing the scope of the external auditors’ annual audit 
programme
•	 monitoring the role and effectiveness of the internal audit 
function and approving the appointment and removal of the 
head of internal audit
•	 reviewing the effectiveness of the abg group’s systems of 
internal control and financial reporting risk management
•	 making recommendations to the board regarding the 
arrangements for the appointment and removal of the external 
auditor and the appropriateness of related terms of engagement 
and remuneration and
•	 reviewing the independence and objectivity of the external auditor  annual report and accounts 2010
79
overview performance financial statements shareholder information governance
plan the relevant audit plan and procedures are aimed at addressing 
financial and overall risk management objectives and have been 
prepared in accordance with standards promoted by the institute 
of internal auditors the committee will continue to monitor the 
effectiveness of internal audit plans in accordance with abg’s 
ongoing requirements
•	 c o ns ider a t io n 	 a n d 	 a p p r o v a l 	 o f 	 t h e 	 sc o p e 	 o f 	 e xt ern a l 	 a ud i t 	 a n d 	 r e la t e d	
p r oc es ses  the committee met regularly with abg’s auditors to agree 
the scope of the external audit plan for 2010 overall abg group 
audit fees and the process for approving external audit and tax 
services the committee also approved the nonaudit services to be 
provided by abg’s auditors for the year pricewaterhousecoopers 
llp  whose appointment has been approved by the committee
•	 r ev iew 	 o f 	 e xis t i n g 	 i n t ern a l 	 c o n t r o l 	 p r o c e d u r e s 	 a n d 	 t h e 	 a l lo c a t io n	
o f 	 r e s p o ns i b i l i ty 	 f o r 	 ris k 	 m a n a g em en t 	in conjunction with abg’s 
internal audit and financial control functions the committee 
conducted a number of reviews of abg’s systems and processes to 
progress internal control matters it also conducted a review of the 
allocation of risk management oversight to ensure that responsibility 
for overall risk management and review is appropriately allocated 
between the various components of abg’s governance structure 
the findings of these review procedures are in the process of being 
incorporated into abg’s risk management framework and were 
provided as appropriate for discussion at board level the committee 
has reviewed its terms of reference to reflect its responsibilities in the 
context of the review of internal control systems and financial risk 
management systems
•	 c o ns ider a t io n 	 a n d 	 r ev iew 	 o f 	 t h e 	 fu l ly e a r 	 a n d 	 h a l fy e a r 	 r e s u l ts	
as part of this process the committee met with abg’s auditors to 
discuss and review the treatment and disclosure of matters identified 
during the audit and halfyear review and the recommendations or 
observations made by abg’s auditors 
nonaudit services
the committee monitors and approves the provision of nonaudit 
services by abg’s auditors the provision of nonaudit services is 
generally limited to services that are closely connected to the external 
audit or to projects that require a detailed understanding of the abg 
group details of fees payable for audit and nonaudit services are 
contained on page 128 in note 9 to the financial statements as part 
of the audit assurance process abg’s auditors provide appropriate 
confirmations on independence and objectivity irrespective of any  
nonaudit services they provide
t erms of reference
the audit committee terms of reference are available for inspection 
on abg’s website 
andre falzon audit committee chair
nomination committee
derek pannell nomination committee chair 
the nomination committee is chaired by derek pannell its other 
members are stephen galbraith and bobby godsell the majority 
of the committee members are determined to be independent in 
line with uk corporate governance requirements further details of 
the qualification of each member of the committee are set out in the 
biographies contained on pages 7071
the committee is scheduled to meet at least once a year it plays a 
leading role in reviewing the structure size and composition of the 
board it has responsibility for making recommendations to abg’s 
board on board and committee composition and on the retirement 
and appointment of additional and replacement directors
the committee met once during the year details of members’ 
attendance can be found on page 75 
in 2010 the selection process for board appointments was 
performed as part of the ipo process external recruitment 
consultants were not used for this purpose going forward the 
committee will take the lead in identifying and nominating 
candidates for board appointments to ensure that the composition 
of the board retains an appropriate balance of the skills and 
experience required for abg’s business and operations 
the nomination committee terms of reference are available for 
inspection on abg’s website 
derek pannell nomination committee chair 80
wwwafricanbarrickgoldcom
corporate governance report continued
•	 iden t i f y i n g 	 cs r 	 a n d 	 en v i r o n m en t a l 	 p rio ri t ie s 	throughout the year 
the committee collaborated with abg’s management and csr 
function to review the group’s csr and environmental objectives and 
initiatives in order to confirm priorities for 2011 priorities included
 – enhancing existing community and government dialogue to 
support ongoing stakeholder engagement
 – implementing compliance across all mine sites with the 
international cyanide management code and
 – implementing further safety awareness training and incident
reduction programmes 
•	 n o nfi n a n c ia l 	 ris k 	 r ev iew  	as part of abg’s overall risk management 
review the committee received and reviewed reports on a number of 
nonfinancial risks falling within its remit principally in connection 
with environmental and security matters
•	 dev e lo p i n g 	 cs r 	 a n d 	 e n v i r o n m en t a l 	 p o l ic ie s 	the committee 
commenced a progressive review of csr and environmental policy 
against abg strategy and objectives and
•	 r ev iew i n g 	 se c u ri ty 	 a n d 	 c o rru p t io n 	 c o n t r o ls 	the committee received 
quarterly management reports on security incidents as part of this 
review and reporting process it identified a number of security 
initiatives for 2011 which seek to strengthen and develop existing 
systems and reinforce the security environment in which abg 
operates initiatives include 
 – further enhancement of site security infrastructure
 – increasing investigative and detection capacities and
 – continuing the implementation and reinforcement of adherence to 
the voluntary principles and security systems management
t erms of reference
the ehss committee terms of reference are available for inspection 
on abg’s website 
bobby godsell ehss committee chair
compensation committee
the compensation committee is chaired by michael kenyon its other 
members are james cross andre falzon and aaron regent in line 
with uk corporate governance requirements three members of the 
committee are determined by the board to be independent further 
details of the qualifications of each member of the committee are set 
out in the biographies contained on pages 7071
the committee is scheduled to meet at least once a year and met four 
times during the year details of members’ attendance can be found 
on page 75 
the directors’ remuneration report on pages 8795 contains further 
information on the committee’s role responsibilities and activities 
throughout the course of 2010 
ehss committee
bobby godsell ehss committee chair
members and responsibilities
the ehss committee is chaired by bobby godsell its other 
members are stephen galbraith and derek pannell further details 
of the qualifications of each member of the committee are set out in 
the biographies contained on pages 7071 
the committee is scheduled to meet at least twice a year it is 
responsible for among other things
•	 overseeing the development of strategy and policy on 
environmental csr and security matters
•	 reviewing the effectiveness of the abg group’s environmental 
management programmes and systems 
•	 reviewing the effectiveness of the abg group’s health and safety 
systems and specific incident reports
•	 reviewing the scope of potential environmental liabilities and the 
management processes for managing these liabilities
•	 reviewing management reports on abg’s csr programme
•	 reviewing management reports on security incidents and the 
effectiveness of related controls and
•	 overseeing management in monitoring reviews and evaluating 
emerging csr issues to assess the potential impact on abg’s 
business and operations 
meetings and attendance
the committee met three times during the year details of members’ 
attendance can be found on page 75 
the committee has asked the chief executive officer the chief 
operating officer abg’s general counsel and members of abg’s 
environmental community relations and security teams to attend 
committee meetings on a regular basis 
activities
activities in 2010 focused on identifying key csr and environmental 
initiatives and on reviewing the key challenges and risks faced by abg’s 
operations specifically in the context of fraud corruption and security 
key work undertaken by the committee included
•	 r ev iew i n g 	 t e rms 	 o f 	 r ef er en c e 	the committee reviewed its terms of 
reference and recommended that certain changes be made to reflect 
its responsibility for reviewing security matters and incidents annual report and accounts 2010
81
overview performance financial statements shareholder information
directors’ report
governance
directors
the names and biographies of the directors serving at the date of this 
report are provided on pages 7071 
an overview of directors’ appointments for the duration of the year 
under review is provided below
date of appointment date of termination
aaron regent 15 february 2010 na
greg hawkins 15 february 2010 na
kevin jennings 14 january 2010 na
james cross 15 february 2010 na
andre falzon 15 february 2010 na
stephen galbraith 19 january 2010 na
bobby godsell 15 february 2010 na
michael kenyon 15 february 2010 na
derek pannell 15 february 2010 na
all directors will put themselves forward for reelection at the 
forthcoming agm details of director reelection requirements are 
provided on page 76 
catherine boggs was appointed to the board on 14 january 2010 and 
resigned from the board on 19 january 2010 as part of the preparations 
for abg’s ipo paul buchanan was appointed to the board on 
19 january 2010 he resigned from the board on 15 february 2010 
as part of ipo preparations 
directors’ indemnity insurance
in accordance with abg’s articles of association and to the extent 
permitted by the companies act 2006 abg may indemnify its 
directors out of its own funds to cover liabilities incurred as a result 
of their office the relevant provision contained in the articles can 
be categorised as a ‘qualifying third party indemnity provision’ under 
the companies act 2006 as part of ipo preparations abg adopted 
directors’ and officers’ liability insurance this provides insurance 
cover for any claim brought against directors or officers for wrongful 
acts in connection with their positions the insurance provided does 
not extend to claims arising from fraud or dishonesty and it does not 
provide cover for civil or criminal fines or penalties imposed by law
directors’ interests
details of the interests of directors and their connected persons 
in abg’s shares or in related derivates or financial instruments are 
outlined in the directors’ remuneration report on pages 8795 
principal activities
with 168 million ounces of reserves the abg group is the largest 
gold producer in tanzania and the fifth largest in africa growing 
from no production in 2000 to approximately 701000 attributable 
ounces in 2010 it has four producing mines all located in north west 
tanzania and seven principal exploration projects the abg group has 
substantial gold mining experience and expertise from exploration and 
development through to mine construction and operation 
our four mines are 
•	 bulyanhulu an underground gold mine which began production 
in april 2001 
•	 buzwagi an open pit gold mine which began production in 
may 2009 
•	 north mara an open pit gold mine consisting of three open pit 
deposits which began production in april 2002 and 
•	 tulawaka an open pit gold mine which has transitioned to an 
underground operation it began production in june 2005 
the recent focus of abg’s exploration has been on advancing the 
exploration opportunities around its existing operating mines in order 
to increase the company’s reserves and resources 
further details of abg group’s activities are provided in the overview 
and performance sections of this report details of abg’s registered 
office and business locations are provided on the back cover
business review
the requirements of the business review are contained in the overview 
and performance sections of this report
an overview of the principal risks and uncertainties faced by the 
abg group is provided on pages 6569 
see pages 5663 for information on environmental employee and 
social and community matters 
all of the matters above are incorporated by reference in this 
directors’ report 
abg is incorporated and registered as a public limited company in england 
and w ales its headquarters are in london and it is listed on the main market 
of the london stock exchange under the symbol abg  82
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directors’ report continued
law abg did not obtain any shareholder approval to repurchase any 
of its issued shares during the year under review
details of abg’s issued share capital and any movements during the 
year are included on page 137 in note 23 to the financial statements 
major shareholdings
the following persons as at 1 march 2011 are interested in the following 
percentages of abg’s issued ordinary share capital
name no of shares
percentage  
of issued  
share capital
barrick international barbados corp 179609530 4380
pdg bank limited 37378450 915
pdg sona cayman ltd 86258970 2100
total 303246950 7395
all of these shareholders are members of the barrick group 
relationship with major shareholder
an overview of abg’s relationship with barrick and the relationship 
agreement that has been executed in respect of their ongoing 
relationship is provided on pages 76 and 77 
political and charitable donations
abg does not make political donations during the year under review 
the abg group expended us35 million on social and community 
welfare activities surrounding its operations 
creditor payment policy
it is abg policy to settle all debts with creditors on a timely basis and 
in accordance with terms and conditions agreed in advance with each 
creditor further details on trade creditors are provided on page 138 
in note 25 to the financial statements 
suppliers
it is abg’s policy that subject to compliance with trading terms by the 
supplier payments are made in accordance with terms and conditions 
agreed in advance with the supplier 
as at 31 december 2010 abg had an average of 51 creditor days for 
the abg group compared to 46 in 2009 
policy on derivatives financial instruments and financial 
risk management
abg’s policies on financial risk management derivatives financial 
instruments and information on its exposures to foreign currency 
commodity prices credit equity liquidity and interest rates can be 
found in notes 27 28 and 29 to the financial statements contained  
on pages 139144 of this report 
employee share schemes
details of abg’s employee share plans and longterm incentive plans 
are contained on pages 89 and 90 
employees
information relating to employees is contained on page 126 in note 6 to 
the financial statements and the corporate responsibility section abg 
abides by antidiscrimination legislation in all jurisdictions in which it 
operates these principles are also set out in abg’s code of conduct 
which sets out the framework in which abg expects all staff to operate 
this is supported by antidiscrimination standards and training in 
offices and mine sites which identify the required standards and provide 
mechanisms to raise any concerns with management
dividends
an interim dividend of us16 cents per share was paid to shareholders 
on 27 september 2010 the directors recommend the payment of 
a final dividend of us37 cents per share subject to shareholders’ 
approval of this recommendation at the agm the dividend will be paid 
on 26 may 2011 to shareholders on the register at 3 may 2011 the ex
dividend date is 27 april 2011 
abg will declare the final dividend in us dollars unless a shareholder 
has elected or elects to receive dividends in us dollars dividends will be 
paid in pounds sterling with the us dollar amount being converted into 
pounds sterling at exchange rates prevailing on or around 9 may 2011 
currency elections must be made by return of currency election forms 
by the deadline date of 6 may 2011
annual general meeting
abg’s first agm will be held on 21 april 2011 at the intercontinental 
london park lane at 1 hamilton place park lane london w1j 7qy  
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 www
africanbarrickgoldcom
the right of a shareholder to participate in the business of the agm 
shall include without limitation the right to speak vote on a show of 
hands vote on a poll be represented by a proxy and have access to 
all documents which are required by the companies act 2006 or the 
articles of association to be made available to the meeting
share capital
as at 31 december 2010 abg’s issued share capital comprised 
410085499 ordinary shares of 10 pence each the voting rights of all 
abg shares are identical with each share carrying the right to one vote 
abg holds no ordinary shares in treasury and does not have any class 
of share other than its ordinary shares further details on voting rights 
and rights relating to the transfer of shares are provided below
abg’s articles of association provide the authority for abg to purchase 
its own shares including any redeemable preference shares provided 
that it complies with any applicable requirements contained in the 
companies act 2006 the crest regulations or any other applicable  annual report and accounts 2010
83
overview performance financial statements shareholder information governance
company pgi and mdn inc mdn the tulawaka agreement 
provides that all capital and operating costs associated with the 
tulawaka mine are funded by pgi and mdn on a 7030 basis and 
that pgi is contractually obligated to pay mdn an amount equal 
to 30 of the net cash generated by the tulawaka mine less any 
applicable withholding
•	 mineral development agreements each abg group operating 
mine has a mineral development agreement mda with the 
tanzanian government the material terms and conditions of each 
such mda are substantially similar and include provisions governing 
royalty payments taxes and other charges banking arrangements 
local procurement obligations and import rights the mdas also 
provide for no expropriation or nationalisation rights broadly these 
rights provide that the tanzanian government will not nationalise 
or compulsorily acquire the whole or any part of abg’s interest in 
the applicable special mining licences or any of its property or its 
contractors’ or subcontractors’ property used for the purpose of 
mining operations or in relation to the applicable special mining 
licences without adequate compensation each mda is governed by 
tanzanian law adherence to the terms and conditions of the mdas 
is of significant importance to abg’s business given the agreements 
overall importance to our operations
•	 tanesco relationship the north mara buzwagi and bulyanhulu 
mines rely upon electrical power generated by the state power utility 
company tanesco while north mara and bulyanhulu have 
diesel power generation facilities on site capable of supporting their 
operations buzwagi does not have such selfgeneration capacity 
and there is no readily available alternative power supply to the 
national grid abg has entered into a number of agreements and 
arrangements with tanesco in respect of power supply and 
purchase prices these agreements are reviewed on a regular basis 
as national electricity generation and transmission systems in 
tanzania are limited abg’s ongoing relationship with tanesco 
is of significant importance to its operations and business any 
adverse change or development in this relationship could produce 
a material adverse effect on abg’s operations performance and 
financial condition
all other material contracts and arrangements are summarised above 
under ‘material agreements containing change of control provisions’ 
going concern
the directors’ statement on going concern is contained on page 54 
of this report
corporate governance compliance
the statement on compliance with the combined code for the 
reporting period is contained on page 78 of this report
articles of association
the company’s articles of association may be amended by special 
resolution of the shareholders 
shareholder rights 
the rights and obligations attaching to the ordinary shares contained 
in abg’s articles of association are as follows 
material agreements containing change of control provisions
the directors consider the following as material agreements and 
arrangements for abg’s business and operations which contain 
provisions which alter or terminate on a change of control of abg 
•	 services agreement as part of its ipo preparations abg entered 
into a services agreement with barrick under which barrick provides 
certain services to abg and the other members of the abg group 
for the ongoing operation of the business these services include 
support for information technology technical services security and 
other administrative and corporate functions the services agreement 
provides that the services are to be provided to the abg group 
for an initial period of 12 months and will continue in force unless 
terminated the agreement’s termination events include a basis for 
either party to terminate the agreement with immediate effect in the 
event of specified breaches of the agreement insolvency or analogous 
events or a change of control
•	 relationship agreement see pages 76 and 77 of this report for an 
overview of the relationship agreement 
•	 credit agreement an overview of the credit agreement between 
among others abg and citibank international plc as administrative 
agent is provided on page 53 of this report a change of control of 
abg is a mandatory prepayment event under the credit agreement 
and subject to certain exceptions a termination event 
abg’s mining concessions are held by its operating companies in 
tanzania under applicable law a change of control of the operating 
companies requires the consent of the minister of energy and minerals 
in tanzania 
there are no agreements in place between abg and its directors 
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 option plan and early vesting of awards made 
under abg’s long term incentive plan ‘ltip’ in the event of a 
takeover reconstruction or winding up in such circumstances the 
compensation committee determines whether and to what extent 
options or awards become exercisable by taking into account all 
relevant facts and circumstances including but not limited to 
satisfaction of any applicable performance condition
when determining the vesting of ltip awards or options the 
committee may proportionately reduce the award depending on the 
time which has elapsed between the first day of the performance 
period and the date of change of control alternatively awards may 
be exchanged for new equivalent awards where appropriate
significant relationships
abg’ s relationship with barrick as its majority shareholder is summarised 
on pages 76 and 77 of this report in addition to this relationship 
the directors consider the following contractual relationships and 
arrangements as essential for the conduct of abg’s business
•	 tulawaka agreement although the tulawaka mine is 100 owned 
and operated by pangea minerals limited the economic interest in 
the mine is divided on a 7030 basis following a 1998 contractual joint 
venture agreement between pangea goldfields inc an abg group  84
wwwafricanbarrickgoldcom
directors’ report continued
the directors may retain any dividend or other money payable on 
or in respect of a share on which abg has a lien and may apply the 
same towards satisfaction of the monies payable to abg in respect of 
that share
unless the directors otherwise determine the payment of any dividend 
or other money that would otherwise be payable in respect of shares 
will be withheld and abg shall have no obligation to pay interest on it 
if such shares represent at least 025 of the nominal value of the issued 
share capital of their class and the holder or any other person appearing 
to be interested in those shares has been issued with a section 793 
notice and has failed to supply the information required by such notice 
within 14 days furthermore such a holder shall not be entitled to elect 
to receive shares instead of a dividend
the payment by the board of any unclaimed dividend or other monies 
on or in respect of a share into a separate account shall not constitute 
abg a trustee in respect thereof all dividends unclaimed for a period 
of 12 years after having been declared or become due for payment shall 
be forfeited and shall revert to abg
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
all transfers of shares which are in uncertificated form shall unless the 
crest regulations otherwise provide be effected on a relevant system 
the directors may in their absolute discretion and without giving 
any reason refuse to register any transfer of a share in certificated form 
or renunciation of a renounceable letter of allotment unless
i it is in respect of a share which is fully paid up
ii it is in respect of only one class of shares
iii it is in favour of not more than four joint transferees
iv it is lodged duly stamped if so required at the transfer office
v  it is accompanied by the relevant certificate for the shares to which 
it relates and such other evidence as the directors may reasonably 
require to prove the title of the transferor and the due execution of 
the transfer or if the transfer is executed by some other person on 
his behalf the authority of that person to do so and
vi  in the case of partly paid shares listed on the london stock 
exchange such refusal would prevent dealings in such shares from 
taking place on an open and proper basis
voting 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 companies act 2006 a poll may be demanded by the chairman 
by at least five members who have the right to vote at the meeting by a 
member or members representing not less than onetenth of the total 
voting rights of all the members having the right to vote at the meeting 
or by a member or members holding shares conferring a right to vote 
at the meeting being shares on which an aggregate sum has been paid 
up equal to not less than onetenth of the total sum paid up on all the 
shares conferring that right
unless the directors otherwise determine a shareholder is not entitled 
to vote at a shareholders’ meeting either in person or by proxy or 
to exercise any other right conferred by membership in relation to a 
shareholders’ meeting unless and until all calls or other sums presently 
payable by him in respect of that share with interest and expenses if 
any have been paid to abg or if he or any other person appearing to 
be interested in shares has been issued with a notice pursuant to section 
793 of the companies act 2006 requiring disclosure of interest in 
shares and has failed to provide the required information within 14 
days from the service of the notice
dividend rights
the board may declare and pay dividends on any class of shares 
carrying a fixed dividend expressed to be payable on fixed dates and 
may from time to time pay interim dividends as it thinks fit final 
dividends shall be declared by ordinary shareholder resolution in 
accordance with board recommendations no dividend declared by 
shareholders shall exceed the amount recommended by the board
provided that the board acts in good faith it shall not incur any liability 
to shareholders for any loss that they may suffer by the lawful payment 
of any fixed or interim dividend on any shares ranking after or pari 
passu with those shares
except as otherwise provided by the rights attached to shares all 
dividends shall be apportioned and paid proportionately to the amounts 
paid up on the shares during any portion or portions of the period in 
respect of which the dividend is paid but if any share is issued on terms 
providing that it shall rank for dividend as from a particular date it 
shall rank for dividend accordingly no amount paid up on a share in 
advance of the date on which a call is payable shall be treated as paid up 
on the share
payment of any dividend declared may be satisfied wholly or partly by 
the distribution of specific assets and in particular of paid up shares or 
debentures of abg with shareholder approval annual report and accounts 2010
85
overview performance financial statements shareholder information governance
liability or obligation of abg or of any third party up to a maximum 
amount of two times the aggregate of the abg group’s adjusted total 
equity calculated in accordance with the procedure contained in the 
articles of association borrowings in excess of this amount require 
prior shareholder approval 
new issues of shares
the articles of association provide the directors with a general and 
unconditional authority to allot new shares up to a maximum amount 
of onethird of abg’s issued ordinary share capital for the period 
ending on the date of the forthcoming agm pursuant to this the 
directors are empowered to allot any new equity securities wholly for 
cash pursuant to and within the terms of the allotment authority on a 
nonpreemptive basis if the allotment is made in connection with a 
rights issue or if not up to a maximum aggregate amount that is equal 
to 5 of abg’s issued ordinary share capital the related authority to 
allot shares on a nonpreemptive basis also expires on the date of the 
forthcoming agm these powers were not exercised during the year 
under review 
these powers are capable of renewal by shareholder resolution 
resolutions for a renewal will be put to the shareholders at the 
forthcoming meeting 
appointment and replacement of directors
shareholders may appoint any person who is willing to act as a director 
by ordinary resolution and may remove any director by ordinary 
resolution the board may appoint any person to fill any vacancy or as 
an additional director provided that they are submitted for reelection 
by the shareholders at the agm following their appointment 
each director shall retire at the agm held in the third calendar 
year following his or her election and subsequent reelections non
executive directors shall also retire at each agm following the ninth 
anniversary of the date of their initial election all retiring directors 
shall be eligible for election or reelection unless otherwise determined 
by the board 
specific conditions apply to the vacation of office including cases where 
a director becomes prohibited by law or regulation from holding office 
or is persistently absent from directors’ meetings or if threequarters 
of appointed directors request his or her resignation or in the case of 
mental incapacity or bankruptcy 
barrick’s rights to appoint directors are summarised on page 76
related party transactions
details of related party transactions undertaken during the year are 
contained in note 32 on pages 146147 of the financial statements 
post balance sheet events
particulars of any important events affecting the company or the 
abg group since the year end are contained in note 34 on page 147 
of the financial statements 
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 
abg’s business is managed by the board and the articles of association 
permit the board to exercise all of abg’s powers in this regard these 
powers may be exercised by any meeting of the board at which a 
quorum of two directors is present the power of the board to manage 
the business is subject to any limitations imposed by the companies 
act the articles of association or any directions given by special 
resolution of the shareholders applicable at a relevant time 
the articles contain an express authority for the appointment of 
executive directors and provide the directors with the authority to 
delegate or confer upon such directors any of the powers exercisable by 
them upon such terms and conditions and with such restrictions as they 
see fit the articles contain additional authorities to delegate powers and 
discretions to committees and subcommittees 
borrowing powers
subject to the provisions of the companies act 2006 the crest 
regulations and any other applicable law the directors may exercise all 
the powers of abg to borrow money guarantee indemnify mortgage 
or charge its undertaking property present and future and uncalled 
capital or any part or parts thereof and issue debentures and other 
securities whether outright or as collateral security for any debt  86
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the directors are responsible for keeping adequate accounting records 
that are sufficient to show and explain the company’s transactions and 
disclose with reasonable accuracy at any time the financial position of 
the company and the abg group and enable them to ensure that the 
financial statements and the directors’ remuneration report comply 
with the companies act 2006 and as regards the abg group’s financial 
statements article 4 of the ias regulation they are also responsible for 
safeguarding the assets of the company and the abg group and hence 
for taking reasonable steps for the prevention and detection of fraud 
and other irregularities
the directors are responsible for the maintenance and integrity of 
abg’s website and legislation in the united kingdom governing the 
preparation and dissemination of financial statements may differ from 
legislation in other jurisdictions
responsibility statement required by disclosure and transparency rules
the directors confirm to the best of their knowledge that
•	 the financial statements prepared in accordance with applicable 
accounting standards give a true and fair view of the assets liabilities 
financial position and profit or loss of abg and the undertakings 
included in the consolidation as a whole and
•	 the management report which is incorporated into the directors’ 
report includes a fair review of the development or performance of 
the business and the position of abg and the undertakings included 
in the consolidation as a whole together with a description of the 
principal risks and uncertainties that they face
approval of directors’ report
this report has been approved by the board and signed on its behalf by
katrina white company secretary
audit information
having made the requisite enquiries so far as the directors are aware 
there is no relevant audit information as defined by section 4183 
of the companies act 2006 of which the auditors are unaware and 
each director has taken all steps that he or she ought to have taken as 
a director to make himself aware of any relevant audit information 
and to establish that the auditors are aware of that information 
auditors
abg’s auditors are pricewaterhousecoopers llp pwc a resolution to 
reappoint pwc as auditors will be proposed at the forthcoming agm 
refer to page 101 as part of the financial statements for the independent 
auditors’ report
directors’ responsibilities statement
under applicable uk law the directors are responsible for preparing the 
annual report the directors’ report the remuneration report and the 
financial statements in accordance with applicable law and regulation 
responsibility for financial statements
the companies act 2006 requires the directors to prepare financial 
statements for each financial year under that law the directors have 
prepared the group and parent company financial statements in 
accordance with international financial reporting standards ifrs as 
adopted by the european union under company law the directors must 
not approve the financial statements unless they are satisfied that they 
give a true and fair view of the state of affairs of the abg group and the 
company and of the profit or loss of the abg group for that period 
in preparing these financial statements the directors are required to
•	 select suitable accounting policies and then apply them consistently
•	 make judgements and accounting estimates that are reasonable 
and prudent
•	 state whether applicable ifrs as adopted by the european union 
have been followed subject to any material departures disclosed and 
explained in the financial statements and
•	 prepare the financial statements on the going concern basis unless 
it is inappropriate to presume that the company will continue 
in business
directors’ report continued annual report and accounts 2010
87
overview performance financial statements shareholder information
remuneration report
governance
audit notes
in accordance with section 421 of the companies act 2006 and 
schedule 8 of the large and medium sized companies and groups 
accounts and reports regulations 2008 the ‘regulations’ the 
following sections of the annual report have been audited directors’ 
remuneration directors’ interests in shares under the abg long term 
incentive plan directors’ interests in options under the abg share 
option plan the remaining sections are not subject to audit
dear shareholder
on behalf of the board i am pleased to present the directors’ report 
on remuneration for 2010 for which we will be seeking approval from 
shareholders at our annual general meeting 
the compensation committee is focused on ensuring the remuneration 
policy enables the group to attract retain and motivate the executive 
talent required for the successful delivery of our business strategy
abg listed on the london stock exchange in march 2010 following 
its part demerger from barrick which is listed on the toronto stock 
exchange abx our remuneration arrangements for 2010 were 
largely inherited from barrick 
during 2010 the committee reviewed abg’s remuneration levels with 
reference to the international gold mining companies with which we 
compete for talent and against ftse companies of similar size and 
complexity based on this review the committee approved the following 
salary increases
•	 chief executive officer increase to £450000 125 and
•	 chief financial officer increase to £327000 9
in the coming year the committee is committed to further reviewing 
the company’s remuneration practices to ensure that our executive 
remuneration arrangements continue to be appropriate for our 
particular circumstances and as a uklisted company in this way we 
will ensure that we continue to attract retain and motivate the executive 
talent required to ensure that we deliver longterm shareholder value
michael kenyon  
chairman of the compensation committee 
10 march 2011
compensation committee
the committee’s principal responsibilities are 
•	 setting reviewing and recommending to the board for approval 
the company’s overall remuneration policy and strategy
•	 setting reviewing and approving individual remuneration 
arrangements for the chairman chief executive officer and 
chief financial officer including terms and conditions of 
employment and any changes
•	 setting reviewing and approving individual remuneration 
arrangements for the senior managers including terms and 
conditions of employment and any changes after considering 
the recommendations of the chief executive officer the 
committee in consultation with the chief executive officer shall 
be responsible for determining which employees comprise the 
senior managers
•	 approving the rules and launch of any company share share 
option or cashbased incentive scheme and the grant award 
allocation or issue of shares share options or payments under any 
such scheme
•	 setting reviewing and approving the corporate and individual 
performance goals for the chief executive officer and chief 
financial officer
•	 setting reviewing and approving the corporate and individual 
performance goals for the senior managers based on the 
chief executive officer’s recommendations
•	 assessing the achievement of corporate and individual 
performance goals of the chief executive officer chief financial 
officer and senior managers
•	 reviewing and making recommendations to the board with 
regard to succession planning with respect to the chief executive 
officer and other senior managers
•	 ensuring that all provisions regarding disclosure of remuneration 
including pensions as set out in the uk corporate governance 
code and the listing rules and as required in connection with 
the preparation of the directors’ remuneration report are 
fulfilled and
•	 establishing the selection criteria selecting appointing and 
setting the terms of reference for any remuneration consultants 
who advise the committee and obtaining reliable uptodate 
information about remuneration in other companies 88
wwwafricanbarrickgoldcom
remuneration report continued
•	 the short term incentive sti – is designed to focus executives 
on the business priorities of the financial year and to reinforce the 
individual and company performance ethic
•	 the long term incentive plan ltip – aims to motivate participants 
to maximise total shareholder return tsr as measured against a 
comparator group of international gold mining companies over a 
period of three years and
•	 the stock option plan sop – 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 ltip is appropriate 
as a measure of longterm performance and that the phased vesting 
period over four years for the sop is appropriate to encourage retention
activities in 2010
during 2010 the compensation committee carried out the 
following activities
•	 review of updates on the regulatory legislative and governance 
environment for executive remuneration
•	 review of competitive assessment of the remuneration arrangements 
for the chief executive officer chief financial officer and senior 
managers for 2011
•	 approval of remuneration arrangements for the head of corporate 
development and investor relations the chief operating officer and 
the general counsel and company secretary
•	 review and approval of 2010 individual performance forecast of 2010 
corporate performance results and pay recommendations for the chief 
executive officer chief financial officer and senior managers and
•	 approval of 2011 salary increases sti payouts for 2010 and ltip and 
sop awards for the chief executive officer chief financial officer 
senior leadership team and other senior managers
components of remuneration
the current remuneration package for executive directors comprises 
performancerelated and nonperformancerelated components the 
performancerelated components are the incentive schemes referred to 
above and the nonperformancerelated components are base salary  
taxable benefits and pension entitlements pay and employment conditions 
elsewhere in the group have been taken into account by the committee in 
determining the remuneration packages for executive directors
the proportion of each executive director’ s total remuneration that is 
performancerelated is significant even for target performance for stretch 
performance the proportion of total remuneration that is performance
related is higher as is the total amount of remuneration payable
the average proportion of remuneration including pension that was 
performancerelated in 2010 is illustrated by the following chart in 
estimating the relative importance of those elements of remuneration 
that are and those that are not performancerelated a number of 
assumptions have had to be made about the company’s share price 
growth and tsr relative to the company’ s comparator group over the 
next three years
the full terms of reference of the compensation committee can be 
found on the abg website and copies are available on request
the committee comprises the chairman of the board and three 
independent nonexecutive directors it meets on at least one occasion 
each year and at such other times as the chairman of the committee 
requires the members during the year were
•	 michael kenyon chairman
•	 james cross
•	 andre falzon
•	 aaron regent
each member’s attendance at meetings held during the year is set 
out in the corporate governance report on page 75 the following 
individuals attend meetings by invitation and provide advice to the 
committee to enable it to make informed decisions 
•	 greg hawkins chief executive officer and
•	 kobus van vuuren head of human resources
no director is present when his or her own remuneration is 
being discussed
the committee also meets without management and receives 
information and advice from kepler associates an independent 
executive remuneration consultancy firm appointed by the committee 
in 2010 during 2010 kepler associates provided advice to the 
committee on market trends remuneration benchmarking and other 
remuneration issues kepler associates does not advise the company 
on any other issues
remuneration policy
abg’s fundamental goal is to create value for its shareholders in 
serving this goal the company’s remuneration policy is designed with 
the following objectives in mind
•	 to align the interests of executive directors with the short and long
term interests of shareholders
•	 to link executive remuneration to the performance of the company 
and the individual
•	 to leverage performance through emphasis on variable remuneration 
to reinforce key business imperatives and strategy
•	 to reinforce the key elements of the company’s strategy and align the 
executive team with the strategy and
•	 to remunerate the chief executive officer chief financial officer 
and senior managers at a level and in a manner that ensures that 
abg is capable of attracting motivating and retaining talent
in defining the company’s remuneration policy the compensation 
committee takes into account advice received from external consultants 
and also best practice guidelines set by institutional shareholder bodies 
including the principles and guidelines on executive remuneration 
issued by the association of british insurers abi and the provisions 
of schedule a of the combined code
to implement the policy abg utilises three complementary 
performancerelated incentive schemes for executives annual report and accounts 2010
89
overview performance financial statements shareholder information governance
for the executive directors the performance measures for the 2010 
incentive year were weighted on group measures including safety 
environment security government relations community relations 
human resources compliance production operating costs capital 
reserves projects the ipo investor relations and earnings
in determining the actual incentive payment the committee considers 
these results against the context of the overall performance of the 
business and of the individual the review of the overall performance 
of the business takes into consideration such factors as operational 
performance strategy and business development activities and 
performance against industry peers the review of individual 
performance takes into consideration achievements against the 
individual’s personal performance contract
for the 2010 incentive year taking into account overall business 
and individual performance the committee has awarded the chief 
executive officer and the chief financial officer sti payments of 90 
and 88 of base salary respectively
longterm incentives 
for 2010 to ensure continuity during the first year of listing since abg’ s 
ipo the longterm incentive plans are broadly commensurate with 
those of barrick over the next 12 months the committee will review the 
company’ s longterm incentive offering to ensure that going forward it 
takes into account accepted uk executive remuneration practices
the rules of the ltip and sop each permit a maximum award with a face 
value equal to 200 of salary in each year under normal circumstances 
the committee may exceed this limit in exceptional circumstances the 
award is delivered 50 through the ltip and 50 through the sop for 
the yearend award the target combined award granted during 2010 was 
170 of salary for the chief executive officer and 148 of salary for the 
chief financial officer this includes the post admission grant awards 
long t erm incentive plan ltip
a limited number of senior managers are allocated company shares 
under the ltip  the company’s tsr performance against the market 
capweighted average tsr of a comparator group of companies over a 
threeyear performance period commencing on the date of grant will 
determine what proportion of the allocated shares will be transferred 
into the ownership of the employee there is no retest provision 
in the event of a change of control vesting of shares under the ltip 
is not automatic and would depend upon the extent to which the 
performance conditions had been met at the time
for the 2010 ltip allocations the comparator group comprises 16 
companies the committee considers that this group represents an 
appropriate set of international gold mining companies against which 
abg’s performance could be compared by shareholders
ceo
fixed base salary benets and pension
variable cash and sharebased incentives
key
cfo
composition of remuneration package for executive directors
as a  of total remuneration at target performance
base salaries
executive directors’ salaries are reviewed each year with any changes 
normally taking effect from 1 january this review takes into account 
individual performance and market competitiveness pensionable salary 
is derived from base salary only 
in line with our remuneration policy the committee benchmarks 
executive directors’ salaries against comparator groups which for the 
2010 salary review were international gold mining general mining 
and ftselisted companies of similar size and complexity for 2011 
executive director salaries will be between the lower quartile and 
median for these comparator groups
the committee approved the following 2011 salary increases for 
executive directors
 
2011 salary
increase on  
2010 salary
chief executive officer £450000 125
chief financial officer £327000 9
short t erm incentive sti
the group operates a cashbased sti which in 2010 provided an 
incentive opportunity in the range of 0 to 150 of base salary for 
executive directors for 2011 the committee approved the following 
sti opportunities for the executive directors
2011 target 
sti opportunity
2011 maximum 
sti opportunity
chief executive officer 75 150
chief financial officer 75 150
at the start of each incentive year the board will set challenging budget 
and stretch financial performance targets and the committee endorses 
other performance measures notably with respect to health safety 
and environmental indicators shortterm incentives at the higher end 
of the range are payable only for demonstrably superior group and 
individual performance  90
wwwafricanbarrickgoldcom
stock option plan sop
the company may grant options over its shares with the option price 
set at least at the fair market value at the time of the grant grants 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 the committee may also at its discretion impose a 
performance condition on sop grants in 2010 options were granted 
with no performance conditions attached
legacy barrick incentive plans
following the ipo in march 2010 many of our senior managers 
who were previously employees of barrick retained stock options and 
restricted share units under barrick’s remuneration arrangements 
further details of these plans and any holdings are disclosed on page 
94 abg executive directors are no longer eligible for further awards 
under the barrick incentive plans
pensions
executive directors receive contributions of 25 of gross base salary 
into a personal pension scheme of the executive director’s choice  
or a cash supplement of commensurate value it is separately identified 
in the emoluments table on page 92
the group does not operate any defined benefit schemes 
dilution
no options have been exercised in the event of all options and shares 
outstanding as at 31 december 2010 under abg’ s sharebased schemes 
which involve the issue of new shares becoming exercisable the resulting 
issue of shares would represent approximately 030 of the issued share 
capital as at that date 
service contracts
the executive directors’ 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 company the committee considers that a notice period 
of one year is appropriate 
the executive directors’ service contracts provide for compensation 
of 12 months’ salary in the event of early termination 
senior managers below the executive directors
the policy and practice with regard to the remuneration of senior 
employees below the executive directors is entirely consistent with that 
for the executive directors these senior managers all have a significant 
portion of their reward package linked to performance they all qualify 
for annual bonus and ltip and sop awards and their performance 
targets are the same as or cascaded from the targets for the executive 
directors the committee reviews and approves the individual 
remuneration packages for the senior managers in accordance with 
the overriding objectives of our remuneration policy their individual 
performance is reviewed and their base salary increases annual bonus 
payments and ltip and sop awards are subject to approval by the 
committee each year
the companies in the comparator group are as follows
agnicoeagle mines y amana gold
centamin egypt goldfields
eldorado gold anglogold ashanti
harmony gold zijin
iamgold minas buenaventura
petropavlovsk kinross
randgold resources polyus gold
semafo centerra gold
the committee reviews this comparator group from time to time and 
intends to do so before making future allocations under the ltip 
the committee has set the following performance conditions for 
allocations made under the ltip
abg’s tsr  outperformance of comparator 
group weighted mean over three years
 of allocated 
 shares transferred
20 2x target
0 target
125 05x target
below 125 all allocated shares are forfeited
where performance is between the above levels the percentage of 
shares to be transferred is determined on a proportionate basis
these performance conditions are illustrated by the graph below
 
target
3 year tsr
0
50
100
comparator
average
 125
comparator
average
comparator
average
 20
150
200
ltip performance conditions
 of allocated shares transferred
remuneration report continued annual report and accounts 2010
91
overview performance financial statements shareholder information governance
 
historical tsr performance
growth in the value of a hypothetical £100 holding from ipo to 31 december 2010
18 march 2010 31 december 2010 30 june 2010
80
90
100
110
120
african barrick gold ftse100
source kepler associates 
the following section of this report provides details of the 
remuneration service contracts or letters of appointment and share 
interests of all the directors for the year ended 31 december 2010
nonexecutive directors
the board aims to recruit nonexecutive directors of a high calibre 
with broad commercial international or other relevant experience 
nonexecutive directors are appointed by the board on the 
recommendation of the nomination committee their appointment 
is for an initial term of three years until 1 february 2013 subject to 
election by shareholders at the first agm following their appointment 
upon the recommendation of the nomination committee they are 
reappointed for a second term of three years subject to reelection by 
shareholders there is a threemonth notice period and no provision 
for termination payments 
the terms of engagement of the nonexecutive directors are set out 
in a letter of appointment
the basic annual fee paid to nonexecutive directors is £50000 
per annum additional fees of £10000 are also payable for acting as 
senior independent director or as chairman of the audit committee 
compensation committee or ehss committee fees are reviewed on 
a regular basis taking into account time commitment competition 
for high quality nonexecutive directors and market conditions a 
review is underway of the current level and components of the non
executive directors’ compensation and it is likely that the level will 
increase in 2011
nonexecutive directors are not eligible to participate in any of the 
company’s share schemes incentive schemes or pension schemes
chairman
aaron regent was appointed as chairman with effect from 
1 february 2010 in line with the nonexecutive directors mr regent’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 regent 
receives no fee
performance graph
the graph below shows abg’s tsr performance for the period from 
the ipo date to 31 december 2010 calculated in accordance with the 
regulations against the performance of the ftse 100 
the ftse 100 was chosen because this is a recognised broad 
equity market index of which the company was a member for the 
reporting period 92
wwwafricanbarrickgoldcom
this part of the remuneration report has been audited by abg’s external auditors
audited directors’ remuneration
individual remuneration for the year to 31 december 2010
salaryfees pension taxable benefits 
a
bonus total
2010 
£
2010 
£
2010 
£
2010 
£
2010 
£
aaron regent – – – – –
greg hawkins 346301 86575 70696 270000 773572 
kevin jennings 232603 58151 55816 197000 543570 
james cross 50000 – 50000 
andre falzon 60000 – – 60000 
stephen galbraith – – – –
bobby godsell 60000 – – 60000 
michael kenyon 60000 – – 60000 
derek pannell 60000 – – 60000 
a includes car allowance relocation expenses and private medicalhealth insurance
no earnings are disclosed for 2009 as abg listed in march 2010 catherine boggs and paul buchanan did not receive any remuneration from the 
company in respect of their positions as directors details of these appointments are provided on page 75
directors’ service contracts
executive directors
details of the service contracts of the executive directors who served during the year are set out below
contract date unexpired term notice period
greg hawkins 23 mar 2010 indefinite 12 months
kevin jennings 23 mar 2010 indefinite 12 months
the executive directors’ service contracts provide for compensation of 12 months’ salary in the event of early termination  
no payment is made on a change of control
chairman and nonexecutive directors
details of the service contracts of the nonexecutive directors who served during the year are set out below
contract  
commencement date
expiry of  
current term
aaron regent 01 feb 2010 01 feb 2013
james cross 01 feb 2010 01 feb 2013
andre falzon 01 feb 2010 01 feb 2013
stephen galbraith 01 feb 2010 01 feb 2013
bobby godsell 01 feb 2010 01 feb 2013
michael kenyon 01 feb 2010 01 feb 2013
derek pannell 01 feb 2010 01 feb 2013
the nonexecutive directors’ letters of appointment do not contain any provision for compensation in the event of early termination of their 
appointment they do not have periods of notice catherine boggs and paul buchanan did not enter into any service contracts in respect of their 
positions as directors nor did they receive letters of appointment details of these appointments are provided on page 75
remuneration report continued overview performance financial statements shareholder information
annual report and accounts 2010
93
audited directors’ interests in shares under the abg long t erm incentive plan 
award date
shares over 
which awards 
held as at  
1 jan 2010
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  
31 dec 2010
greg hawkins
25 nov 2010 0 39901 £512 25 nov 2013 25 nov 2013 39901
kevin jennings
25 nov 2010 0 22305 £512 25 nov 2013 25 nov 2013 22305
no awards have vested or lapsed during the year as such no information is listed as regards such matters in the table above  
neither catherine boggs nor paul buchanan were granted awards under abg’s stock option plan or ltip 
audited directors’ interests in options under the abg share option plan
award date
shares over 
which awards 
held as at  
1 jan 2010
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
final  
vesting date
shares over 
which awards 
held as at  
31 dec 10
greg hawkins      
27 apr 2010 0 125000 £568 0 na 26 apr 2017 27 apr 2011 27 apr 2014 125000
25 nov 2010 0 142501 £512 0 na 24 nov 2017 25 nov 2011 25 nov 2014 142501
kevin jennings      
27 apr 2010 0 100000 £568 0 na 26 apr 2017 27 apr 2011 27 apr 2014 100000
25 nov 2010 0 79659 £512 0 na 24 nov 2017 25 nov 2011 25 nov 2014 79659
neither catherine boggs nor paul buchanan were granted awards under abg’s stock option plan or ltip 
share price information
the midmarket price for the company’s ordinary shares at 31 december 2010 was £611 the range during the year was £503 to £670
directors’ interests in options under the barrick share option plan
award date
shares over 
which awards 
held as at  
1 jan 2010
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
final  
vesting date
shares over 
which awards 
held as at  
31 dec 10
aaron regent
06 feb 2009 500000 – us3857 na – 05 feb 2016 06 feb 2010 6 feb 2013 500000
08 dec 2009 231791 – us4244 na – 07 dec 2016 08 dec 2010 08 dec 2013 231791
07 dec 2010 0 154267 us5483 na – 06 dec 2017 07 dec 2011 07 dec 2014 154267
stephen galbraith       
07 dec 2004 1250 – us2380 1250 us4738 06 dec 2011 07 dec 2005 07 dec 2008 0
30 jul 2008 10000 – us4258 na – 29 jul 2015 30 jul 2009 30 jul 2012 10000
07 dec 2010 0 5000 us5483 na – 06 dec 2017 07 dec 2011 07 dec 2014 5000
greg hawkins 
07 dec 2004 2500 – us2380 na – 06 dec 2011 07 dec 2005 07 dec 2008 2500 
kevin jennings 
08 dec 2009 28287 – us4244 7072 us5438 07 dec 2016 08 dec 2010 08 dec 2013 21215 
governance 94
wwwafricanbarrickgoldcom
remuneration report continued
barrick stock options
grants 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 north america
directors’ interests in barrick restricted share unit plan prsu and rsu
award date
incentive 
plan
shares over 
which awards 
held as at  
1 jan 2010
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 rate at 
date of vesting
lapsed 
during the 
year
shares over 
which awards 
held as at 
31 dec 2010
aaron regent
06 feb 2009 rsus 104842 – us3857 na 06 aug 2011 – – – 105858
08 dec 2009 rsus 33609 – c4463 na 08 jun 2012 – – – 33934
07 dec 2010 rsus – 21598 c5525 na 07 jun 2013 – – – 21598
08 dec 2009 prsus 33609 – c4463 08 dec 2012 08 dec 2012 – – – 33934
07 dec 2010 prsus – 21598 c5525 07 dec 2013 07 dec 2013 – – – 21598
stephen galbraith      
09 dec 2008 rsus 4452 – us2725 na 09 jun 2011 – – – 4495
08 dec 2009 rsus 2379 – c4463 na 08 jun 2012 – – – 2402
07 dec 2010 rsus – 1786 c5525 na 07 jun 2013 – – – 1786
greg hawkins
04 dec 2007 rsus 4380 – us4108 na 04 dec 2010 4422 usd5271 –
30 jul 2008 rsus 1591 – us4258 na 30 jul 2011 – – – 1614
09 dec 2008 rsus 2771 – us2725 – 09 jun 2011 – – na 2797
08 dec 2009 rsus 4534 – c4463 – 08 jun 2012 – – na 4577
kevin jennings
08 dec 2009 rsus 2403 – c4463 – 08 jun 2012 – – na 2426
barrick restricted share units rsus
rsus were granted in lieu of actual shares each rsu has a value equal to one barrick common share rsus granted prior to 2008 vest and are paid 
out in cash on the third anniversary of the grant date rsus granted after december 2008 vest and are paid out in cash 30 months after the date of 
grant pursuant to the rsu plan at vesting each rsu will have a value equal to the then current average closing market price in canadian dollars of 
one barrick common share on each day during the last five trading days prior to the vesting date additional rsus are credited to reflect dividends 
paid on barrick common shares and are subject to the same vesting provisions as the underlying rsus that were actually granted
barrick performance restricted share units prsus
the number of target prsus granted equalled the number of rsus granted 25 of the total longterm incentive award prsus vest based on the 
achievement of goals over a threeyear performance period 
additional prsus are credited to reflect dividends paid on barrick common shares during the performance period prsus resulting from dividend 
equivalent credits are subject to the same vesting provisions as the underlying prsus that were actually granted overview performance financial statements shareholder information
annual report and accounts 2010
95
governance
performance for prsu 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 those with market capitalisations greater than us3 billion as at 30 september 2010 the comparator group are listed below 
agnicoeagle mines ltd anglogold ashanti ltd
eldorado gold corp
a
goldcorp inc
gold fields ltd harmony gold mining co ltd
iamgold corp
a
kinross gold corporation
lihir gold limited
b
newcrest mining ltd
a
newmont mining corp randgold resources ltd
a
y amana gold inc
a these companies were added to the gold mining peers in 2010 based on the compensation consultant’s assessment of the peer group
b lihir gold is not included in the performance peer group subsequent to its acquisition by newcrest mining in may 2010
the vesting schedule for prsus is the same as that for the abg ltip  as detailed on page 89
directors’ interest in abg ordinary shares or derivatives or financial instruments relating to such shares
as at  
31 dec 2010
aaron regent na
greg hawkins na
kevin jennings na
james cross na
andre falzon na
stephen galbraith na
bobby godsell na
michael kenyon na
derek pannell na
there have been no changes in the interests of current directors listed in the table above between 31 december 2010 and 10 march 2011
external appointments
none of the executive directors currently holds an appointment as a nonexecutive of another company
by order of the board
michael kenyon
chairman of the compensation committee  
10 march 2011
registered office
6 st james’s place 
london 
sw1a 1np 
united kingdom reserves and resources 
 
mineral reserves and mineral resources estimates contained in this 
report have been calculated as at 31 december 2010 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 robert 
van der westhuizen corporate mine planning manager 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 us100000 per ounce a silver price of 
us1600 per ounce and a copper price of us200 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 us120000 per 
ounce a silver price of us1900 per ounce and a copper price of 
us250 per pound resources have been estimated using varying cut
off grades depending on the type of mine or project its maturity and 
ore types at each property reserve estimates are dynamic and are 
influenced by changing economic conditions technical issues 
environmental regulations and any other relevant new information 
and therefore these can vary from year to year resource estimates 
can also change and tend to be influenced mostly by new information 
pertaining to the understanding of the deposit and secondly the 
conversion to ore reserves in addition estimates of inferred mineral 
resources may not form the basis of an economic analysis and it 
cannot be assumed that all or any part of an inferred mineral resource 
will ever be upgraded to a higher category therefore investors are 
cautioned not to assume that all or any part of an inferred mineral 
resource exists that it can be economically or legally mined or that 
it will ever be upgraded to a higher category likewise investors are 
cautioned not to assume that all or any part of measured or indicated 
mineral resources will ever be upgraded to mineral reserves 
tulawaka mineral reserves and resources are stated as abg’s 70 
attributable portion  
the nyanzaga mineral reserves and mineral resources estimates 
contained in this report are based on the inferred resource declaration 
made by tusker gold limited in june 2009 which was calculated in 
accordance with the australasian code for reporting of exploration 
results mineral resources and ore reserves 2004 edition 
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
96
wwwafricanbarrickgoldcom  
 
mine gold reserves  resources 
      2010      2009   
mine  classification  tonnes 000’s  grade au gt  ounces 000’s  tonnes 000’s  grade au gt  ounces 000’s 
bulyanhulu  proven and probable   29342  11687  11026    25066    12806  10320 
  mineral resource   11062  8096  2879    10297    10829  3585 
  inferred   8814  11804  3345    6679    14712  3159 
buzwagi  proven and probable   55582  1619  2892    65873    1606  3401 
  mineral resource   18079  0971  564    18664    1154  692 
  inferred   6284  1215  246    6692    1245  268 
north mara  proven and probable   27623  3194  2836    28944    3169  2949 
  mineral resource   18638  3059  1833    7992    3351  861 
  inferred   1859  1893  113    1312    2822  119 
tulawaka 70  proven and probable   320  6527  67    368    7913  94 
  mineral resource   518  5405  90    174    5785  32 
  inferred   94  4976  15    06    17837  03 
total  proven and probable   112867  4636  16821    120251    4336  16764 
  mineral resource   48297  3456  5367    37127    4332  5170 
  inferred   17052  6783  3719    14684    7512  3547 
               
exploration property gold reserves  resources 
mine  classification  tonnes 000’s  grade au gt  ounces 000’s  tonnes 000’s  grade au gt  ounces 000’s 
nyanzaga  proven and probable  – – –   –    –  – 
  mineral resource   2781  3500  313    1377    3614  160 
  inferred   7690  2630  650    3978    2596  332 
               
contained copper reported within gold reserves  resources           
mine  classification  tonnes 000’s  grade cu gt  pounds 000’s  tonnes 000’s  grade cu gt  pounds 000’s 
bulyanhulu  proven and probable   29342  0662  428346    25066    0696  384597 
  mineral resource   11062  0541  131887    10297    0664  150620 
  inferred   8738  0745  143550    6619    0879  128288 
buzwagi  proven and probable   51569  0125  141687    65873    0116  169071 
  mineral resource   18079  0082  32828    18664    0097  39783 
  inferred   6284  0080  11019    6692    0086  12757 
total  proven and probable   80911  0320  570033    90939    0276  553668 
  mineral resource   29140  0256  164715    28961    0298  190403 
  inferred   15023  0467  154569    13311    0481  141045 
               
contained silver reported within gold reserves  resources             
mine  classification  tonnes 000’s  grade ag gt  ounces 000’s  tonnes 000’s  grade ag gt  ounces 000’s 
bulyanhulu  proven and probable   29342  9340  8812    25066    9863  7949 
  mineral resource   11062  7251  2579    10297    9238  3058 
  inferred   8738  10273  2886    6619    12014  2557 
2010 detailed proven and probable reserves 
mine gold reserves 
mine  classification  tonnes  grade au gt  contained au oz 
bulyanhulu  proven   1197565    11052  425527 
  probable   28144863    11714  10600087 
  total pp   29342427    11687  11025615 
buzwagi  proven   4204245    1121  151575 
  probable   51377447    1659  2740674 
  total pp   55581692    1619  2892249 
 
overview performance financial statements shareholder information
annual report and accounts 2010
97
governance reserves and resources continued 
 
2010 detailed proven and probable reserves continued 
mine gold reserves continued 
mine  classification  tonnes  grade au gt  contained au oz 
north mara  proven   8530496   2618   718085 
  probable   19092203   3451   2118286 
  total pp   27622699   3194   2836371 
tulawaka 70  proven   199919   4254   27343 
  probable   120336   10302   39858 
  total pp   320256   6527   67201 
total mine gold reserves  proven   14132225   2911   1322530 
  probable   98734848   4882   15498906 
  total pp   112867073   4636   16821436 
      
contained copper reported within gold reserves       
mine  classification  tonnes  grade cu   contained cu lbs 
bulyanhulu  proven   1197565   0413   10915583 
  probable   28144863   0673   417430593 
  total   29342427   0662   428346176 
buzwagi  proven   191188   0122   516299 
  probable   51377447   0125   141170708 
  total   51568634   0125   141687007 
total copper reported within gold reserves  proven   1388752   0373   11431882 
  probable   79522309   0319   558601302 
  total    80911061   0320   570033183 
      
contained silver reported within gold reserves      
mine  classification  tonnes  grade ag gt  contained ag oz 
bulyanhulu  proven   1197565   7719   297216 
  probable   28144863   9409   8514380 
  total pp   29342427   9340   8811596 
2010 detailed measured and indicated resource 
mine gold resource measured and indicated exclusive of reserves 
mine  classification  tonnes  grade au gt  contained au oz 
bulyanhulu  measured  –   –   – 
  indicated   11061822   8096   2879256 
  total mi   11061822   8096   2879256 
buzwagi  measured   74329   1276   3049 
  indicated   18004326   0970   561365 
  total mi   18078655   0971   564414 
north mara  measured   2522712   2430   197061 
  indicated   16115749   3158   1636288 
  total mi   18638460   3059   1833349 
tulawaka 70  measured  –  –  – 
  indicated   518393   5405   90080 
  total mi   518393   5405   90080 
total mine resource mi  measured   2597040   2397   200110 
  indicated   45700290   3517   5166988 
  total mi   48297331   3456   5367098 
 
98
wwwafricanbarrickgoldcom  
2010 detailed measured and indicated resource continued 
contained copper reported within gold resources 
mine  classification  tonnes  grade cu gt  contained cu lbs 
bulyanhulu  measured   –    –  – 
  indicated   11061822    0541  131887152 
  total mi   11061822    0541  131887152 
buzwagi  measured   74329    0107  174528 
  indicated   18004326    0082  32653609 
  total mi   18078655    0082  32828137 
total copper reported within gold resources  measured   74329    0107  174528 
  indicated   29066148    0257  164540761 
  total mi   29140477    0256  164715289 
      
contained silver reported within gold resource      
mine  classification  tonnes  grade ag gt  contained ag oz 
bulyanhulu  measured   –    –  – 
  indicated   11061822    7251  2578615 
  total mi   11061822    7251  2578615 
      
2010 detailed mine inferred resource 
mine gold inferred resource       
mine  classification  tonnes  grade au gt  contained au oz 
bulyanhulu  inferred   8814392    11804  3345173 
buzwagi  inferred   6284159    1215  245554 
north mara  inferred   1859378    1893  113149 
tulawaka 70  inferred   93859    4976  15016 
total mine inferred resource  total inferred   17051787    6783  3718893 
      
contained copper reported within inferred gold resources    
mine  classification  tonnes  grade cu gt  contained cu lbs 
bulyanhulu  inferred   8738492    0745  143549747 
buzwagi  inferred   6284159    0080  11019052 
total copper reported within gold resources  inferred   15022651    0467  154568799 
      
contained silver reported within inferred gold resource    
mine  classification  tonnes  grade au gt  contained au oz 
bulyanhulu  inferred   8738492    10273  2886196 
detailed exploration property resource 
exploration property resource mi 
mine  classification  tonnes  grade au gt  contained au oz 
nyanzaga  measured  –    –  – 
  indicated   2781000    350  313000 
  total mi   2781000    350  313000 
      
exploration property resource inferred      
mine  classification  tonnes  grade au gt  contained au oz 
nyanzaga  inferred   7689500    2630  650000 
  total inferred   7689500    2630  650000
 
overview performance financial statements shareholder information
annual report and accounts 2010
99
governance financial statements
detailed financial information for the year ended 31 december 2010
independent auditors’ report on the  
consolidated financial statements 101
consolidated financial statements
consolidated income statement 102
consolidated statement of comprehensive income 102
consolidated balance sheet 103
consolidated statement of changes in equity 104
consolidated cash flow statement 105
notes to the consolidated financial statements
general information 106
significant accounting policies 107
segment reporting 123
revenue 125
cost of sales 125
employee benefits 126
exploration and evaluation 126
other charges 127
auditors’ remuneration 128
finance income and finance expense 128
tax expense 129
earnings per share 130
dividend 130
cash flow – other items 130
inventories 131
trade and other current assets 132
cash and cash equivalents 132
property plant and equipment 133
 
goodwill and intangible assets 134
deferred tax assets and liabilities 135
other assets 136
business combination 136
share capital 137
stockbased compensation 138
trade and other payables 138
provisions 139
financial assets and liabilities 139
derivative financial instruments 140
financial risk management 140
operating lease arrangements 144
commitments and contingencies 144
related party balances and transactions 146
mineral licences 147
post balance sheet events 147
independent auditors’ report on the  
parent company financial statements 148
parent company financial statements
parent company income statement 149
parent company statement of comprehensive income 149
parent company balance sheet 150
parent company statement of changes in equity 151
parent company cash flow statement 152
notes to the parent company financial statements 153
100
wwwafricanbarrickgoldcom 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 2010 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 86 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 
opinion on financial statements  
in our opinion the group financial statements  
• give a true and fair view of the state of the group’s affairs as at  
31 december 2010 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 54 in relation to 
going concern  
• the part of the corporate governance report relating to the 
company’s compliance with the nine provisions of the june 2008 
combined 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 2010 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 
10 march 2011 
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 
 
overview performance governance financial statements shareholder information
annual report and accounts 2010
101 consolidated income statement 
 
in thousands of united states dollars 
 
notes 
 for the year ended 
31 december 
2010 
 for the year ended 
31 december 
2009 
revenue note 2a  4  975021 711182 
cost of sales note 2a  5  589039 487027
gross profit     385982 224155 
corporate administration note 2a    35436 37759
exploration and evaluation costs  7  14861 8871
other charges note 2a  8  26033 21419
profit before net finance expense and taxation     309652 156106 
        
finance income  10  1202 361 
finance expense  10  1777 6062
      575 5701
profit before taxation     309077 150405 
tax expense  11  86471 84388
net profit for the period     222606 66017 
profit attributable to       
– noncontrolling interests     4503 7440 
– owners of the parent net earnings     218103 58577 
    
earnings per share    
– basic earnings per share cents   12  532 143 
– diluted earnings per share cents  12  532 143 
 
 
consolidated statement of comprehensive income 
 
in thousands of united states dollars   
for the year ended 
31 december 
2010  
for the year ended 
31 december 
2009 
net profit for the period  222606 66017 
other comprehensive income for the period   –  – 
total comprehensive income for the period  222606 66017 
attributed to   
– noncontrolling interests  4503  7440 
– owners of the parent   218103 58577
the accompanying notes on pages 106 to 147 are an integral part of these consolidated financial statements 
 
102
wwwafricanbarrickgoldcom consolidated income statement 
 
in thousands of united states dollars 
 
notes 
 for the year ended 
31 december 
2010 
 for the year ended 
31 december 
2009 
revenue note 2a  4  975021 711182 
cost of sales note 2a  5  589039 487027
gross profit     385982 224155 
corporate administration note 2a    35436 37759
exploration and evaluation costs  7  14861 8871
other charges note 2a  8  26033 21419
profit before net finance expense and taxation     309652 156106 
        
finance income  10  1202 361 
finance expense  10  1777 6062
      575 5701
profit before taxation     309077 150405 
tax expense  11  86471 84388
net profit for the period     222606 66017 
profit attributable to       
– noncontrolling interests     4503 7440 
– owners of the parent net earnings     218103 58577 
    
earnings per share    
– basic earnings per share cents   12  532 143 
– diluted earnings per share cents  12  532 143 
 
 
consolidated statement of comprehensive income 
 
in thousands of united states dollars   
for the year ended 
31 december 
2010  
for the year ended 
31 december 
2009 
net profit for the period  222606 66017 
other comprehensive income for the period   –  – 
total comprehensive income for the period  222606 66017 
attributed to   
– noncontrolling interests  4503  7440 
– owners of the parent   218103 58577
the accompanying notes on pages 106 to 147 are an integral part of these consolidated financial statements 
 
consolidated balance sheet 
 
 
in thousands of united states dollars  notes  
as at 
31 december 
2010  
as at 
31 december 
2009 
assets     
noncurrent assets     
goodwill and intangible assets  19  258513  156397 
property plant and equipment   18  1615118  1498072 
deferred tax assets  20  121269 181188 
noncurrent portion of inventory  15  69122 –
other assets note 2a  21  104458 61286
    2168480  1896943 
current assets     
inventories  15  227974 278650 
trade and other receivables  16  59214 61598 
other current assets   16  70428 58311 
cash and cash equivalents  17  401012 69726 
     758628 468285 
total assets     2927108 2365228 
 
equity and liabilities     
share capital and share premium  23  929199 –
other reserves    1584125 636922
total owners’ equity    2513324  636922 
noncontrolling interests    29761  20493 
total equity     2543085  657415 
 
noncurrent liabilities     
deferred tax liabilities  20  136185  87893 
derivative financial instruments  28  1754  –
provisions  26  108944  83565 
other noncurrent liabilities note 2a    7483 4748
     254366  176206 
 
current liabilities     
trade and other payables  25  119961  148192 
derivative financial instruments  28  1904  –
provisions  26  4000  –
other current liabilities    3792  –
borrowings from related parties  32  –  1383415 
      129657 1531607 
total liabilities     384023 1707813 
total equity and liabilities     2927108  2365228
the accompanying notes on pages 106 to 147 are an integral part of these consolidated financial statements 
the consolidated financial statements on pages 102 to 147 were approved by the board of directors of african barrick gold plc on 10 march 2011 
and signed on their behalf by 
greg hawkins 
chief executive officer 
overview performance governance financial statements shareholder information
annual report and accounts 2010
103 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 2009    –   – 633749 – 55407 578342   25257 603599 
profit for the period and other 
comprehensive income  
  
–   – – – 58577 58577   7440 66017 
contributed surplus additions    –  – 3 – – 3   – 3 
distributions paid to  
noncontrolling interests  
  
–   – – – – –   12204 12204
balance at 31 december 2009    –  – 633752 – 3170 636922   20493 657415 
issuance of shares to bgc   23  1991   1989138 1991129 – – –  – –
capital reduction  23  –   1989138 1989138 – – –  – –
bonus issue to bgc  23  43805   – 43805 – – –  – –
profit for the period and total 
comprehensive income  
  
–   – – – 218103 218103   4503 222606 
special dividends    –   – 258680 – – 258680  – 258680
conversion to contributed  
surplus   
  
–   – 1039498 – – 1039498   – 1039498 
share issuance   23  16301   921035 – – – 937336   – 937336 
transaction costs  23  –  53933 – – – 53933  – 53933
interim dividend   13  –   – – – 6562 6562  – 6562
stock options     –   – – 640 – 640   – 640 
distributions from  
noncontrolling interests   
 
–   – – – – –   4765 4765 
balance at 31 december 2010    62097   867102 1368774 640 214711 2513324   29761 2543085 
the accompanying notes on pages 106 to 147 are an integral part of these consolidated financial statements 
 
104
wwwafricanbarrickgoldcom 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 2009    –   – 633749 – 55407 578342   25257 603599 
profit for the period and other 
comprehensive income  
  
–   – – – 58577 58577   7440 66017 
contributed surplus additions    –  – 3 – – 3   – 3 
distributions paid to  
noncontrolling interests  
  
–   – – – – –   12204 12204
balance at 31 december 2009    –  – 633752 – 3170 636922   20493 657415 
issuance of shares to bgc   23  1991   1989138 1991129 – – –  – –
capital reduction  23  –   1989138 1989138 – – –  – –
bonus issue to bgc  23  43805   – 43805 – – –  – –
profit for the period and total 
comprehensive income  
  
–   – – – 218103 218103   4503 222606 
special dividends    –   – 258680 – – 258680  – 258680
conversion to contributed  
surplus   
  
–   – 1039498 – – 1039498   – 1039498 
share issuance   23  16301   921035 – – – 937336   – 937336 
transaction costs  23  –  53933 – – – 53933  – 53933
interim dividend   13  –   – – – 6562 6562  – 6562
stock options     –   – – 640 – 640   – 640 
distributions from  
noncontrolling interests   
 
–   – – – – –   4765 4765 
balance at 31 december 2010    62097   867102 1368774 640 214711 2513324   29761 2543085 
the accompanying notes on pages 106 to 147 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 
2010 
for the year ended 
31 december 
2009 
cash flows from operating activities       
net profit for the period     222606 66017 
adjustments for       
taxation     86471 84388 
depreciation and amortisation     107072 106969 
finance items     575 5701 
loss on disposal of property plant and equipment     90 1204 
working capital adjustments  14  84248 81227
other  14  11785 15441 
cash generated from operations before interest and tax     344351 198493 
finance income   10  1202 361 
finance expenses  10  412 4893
net cash generated by operating activities     345141 193961 
        
cash flows from investing activities       
purchase of property plant and equipment  18  224391 223268
investments in other assets     2592 8994
acquisition of subsidiary net of cash acquired     63109 – 
other investing activities  14  14537 16186
net cash used in investing activities     275555 248448
    
cash flows from financing activities       
repayment of external debt    – 112500
repaymentreceipt of related party debt funding  32  575100 195743 
share issuance – ipo net of transaction costs     865366 – 
increase in contributed surplus     231255 3 
special dividend     252981 – 
interim dividend     6562 – 
distributions to noncontrolling interest holders     – 12204
net cash provided by financing activities     261978 71042 
        
net increase in cash and equivalents     331564 16555 
net foreign exchange difference     278 136
cash and cash equivalents at 1 january     69726 53307 
cash and cash equivalents at 31 december    401012 69726
the accompanying notes on pages 106 to 147 are an integral part of these consolidated financial statements
overview performance governance financial statements shareholder information
annual report and accounts 2010
105 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 12 march 
2010 under the companies act 2006 it is registered in england and wales with registered number 7123187 
on 24 march 2010 the company’s shares were admitted to the official list of the united kingdom listing authority “ukla” and to trading 
on the main market of the london stock exchange hereafter referred to as the initial public offering “ipo” the address of its registered 
office is 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 
in preparation for the ipo bgc conducted a reorganisation which was completed on 22 february 2010 whereby the companies comprising 
the african regional business unit of bgc were reorganised under the company the “preipo reorganisation” as such prior to 
22 february 2010 the company did not control all of the entities collectively the “group” it acquired pursuant to the preipo reorganisation 
the consolidated financial statements for the year ended 31 december 2010 were approved for issue by the board of directors of the company 
on 10 march 2011  
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 tanzania 
the principal activities of the subsidiaries and joint ventures included in the consolidated financial statements are as follows 
company  principal activity  country of incorporation  
equity interest  
at 31 december  
 2010  
equity interest 
at 31 december 
2009 
african barrick gold plc  holding company  uk  100  –
buk holdco ltd  holding company  uk  100  –
1816962 ontario inc  holding company  canada  100  –
barbco one ltd  group finance company  barbados  100  –
bapl holding ltd  holding company  mauritius  100  –
cayco tz ltd  holding company  cayman islands  100  –
barrick exploration africa ltd “beal”  exploration  tanzania  100  100
matinje exploration ltd  exploration  tanzania  75  75
itobo exploration ltd  exploration  tanzania  75  75
mkumi exploration ltd   exploration  tanzania  80  80
sekenke exploration ltd  exploration  tanzania  20  20
nyanzaga exploration ltd  exploration  tanzania  100  51
barrick tanzanian holdings ltd  exploration  cayman islands  100  100
barisun exploration ltd   exploration  tanzania  75  75
safari exploration ltd   exploration  tanzania  75  75
prime gold exploration ltd  exploration  tanzania  75  75
kasubuya gold exploration ltd  exploration  tanzania  60  60
kmcl holdings ltd  exploration  cayman islands  100  100
bulyanhulu gold mine ltd   operating gold mine   tanzania  100  100
north mara gold mine ltd   operating gold mine  tanzania  100  100
pangea goldfields inc   holding company  canada  100  100
pangea minerals ltd  operating gold mine  tanzania  100  100
1051694 ontario inc  holding company  canada  100  100
barrick africa proprietary ltd   shared services  south africa  100  100
east africa gold mines ltd   holding company  australia  100  100
106
wwwafricanbarrickgoldcom 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 12 march 
2010 under the companies act 2006 it is registered in england and wales with registered number 7123187 
on 24 march 2010 the company’s shares were admitted to the official list of the united kingdom listing authority “ukla” and to trading 
on the main market of the london stock exchange hereafter referred to as the initial public offering “ipo” the address of its registered 
office is 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 
in preparation for the ipo bgc conducted a reorganisation which was completed on 22 february 2010 whereby the companies comprising 
the african regional business unit of bgc were reorganised under the company the “preipo reorganisation” as such prior to 
22 february 2010 the company did not control all of the entities collectively the “group” it acquired pursuant to the preipo reorganisation 
the consolidated financial statements for the year ended 31 december 2010 were approved for issue by the board of directors of the company 
on 10 march 2011  
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 tanzania 
the principal activities of the subsidiaries and joint ventures included in the consolidated financial statements are as follows 
company  principal activity  country of incorporation  
equity interest  
at 31 december  
 2010  
equity interest 
at 31 december 
2009 
african barrick gold plc  holding company  uk  100  –
buk holdco ltd  holding company  uk  100  –
1816962 ontario inc  holding company  canada  100  –
barbco one ltd  group finance company  barbados  100  –
bapl holding ltd  holding company  mauritius  100  –
cayco tz ltd  holding company  cayman islands  100  –
barrick exploration africa ltd “beal”  exploration  tanzania  100  100
matinje exploration ltd  exploration  tanzania  75  75
itobo exploration ltd  exploration  tanzania  75  75
mkumi exploration ltd   exploration  tanzania  80  80
sekenke exploration ltd  exploration  tanzania  20  20
nyanzaga exploration ltd  exploration  tanzania  100  51
barrick tanzanian holdings ltd  exploration  cayman islands  100  100
barisun exploration ltd   exploration  tanzania  75  75
safari exploration ltd   exploration  tanzania  75  75
prime gold exploration ltd  exploration  tanzania  75  75
kasubuya gold exploration ltd  exploration  tanzania  60  60
kmcl holdings ltd  exploration  cayman islands  100  100
bulyanhulu gold mine ltd   operating gold mine   tanzania  100  100
north mara gold mine ltd   operating gold mine  tanzania  100  100
pangea goldfields inc   holding company  canada  100  100
pangea minerals ltd  operating gold mine  tanzania  100  100
1051694 ontario inc  holding company  canada  100  100
barrick africa proprietary ltd   shared services  south africa  100  100
east africa gold mines ltd   holding company  australia  100  100
 
 
 
company  principal activity  country of incorporation  
equity interest 
at 31 december 
company
 2010 
equity interest 
at 31 december 
company 
2009 
tusker gold ltd  holding company  australia  100 –
indago autan proprietary ltd  holding company  australia  100 –
idg aurum holdings ltd  holding company  tanzania  100 –
kdg kitongo tanzania ltd  dormant company  tanzania  100 –
vulcan resources tanzania ltd  dormant company  tanzania  100 –
aptian resources tanzania ltd  dormant company  tanzania  100 –
subsahara resources tanzania ltd  exploration  tanzania  100 –
kahama project joint venture  exploration  tanzania  51 –
nyakafuru project joint venture  exploration  tanzania  51 –
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 of 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 years ended 
31 december 2009 and 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 2009  
the consolidated financial statements have been prepared under the historical cost convention basis as modified by the revaluation of financial 
assets and financial liabilities including derivative instruments at fair value through profit or loss  
the consolidated financial statements are presented in us dollars us and all values are rounded to the nearest thousand us’000 except 
when otherwise indicated  
where a change in the presentational format between the prospectus and the consolidated financial statements has been made during the 
period comparative figures have been restated accordingly the following presentational changes were made during the current year 
• revenue from the sale of copper and silver is treated as coproduct revenue and included in total revenue in line with a management 
decision to record it as coproduct revenue coproduct revenue increased by 202 yearonyear this is different from the prospectus 
where it was treated as byproduct revenue as a credit to cost of sales the change was a result of increased revenue from copper following 
the commencement of copper concentrate sales at buzwagi refer to notes 2k 3 4 and 5 
• assets relating to restrictive share unit liabilities of us75 million have been reclassified and offset against the liability this is different from 
the prospectus where the asset was shown separately as part of noncurrent assets as this amount has an immaterial impact on the opening 
position no opening balance sheet is presented refer to notes 2w 3 and 21 
• gains and losses on the translation of foreign currency transactions are deemed to be part of other charges this is different from the 
prospectus where it was classified as part of corporate administration refer to note 3 
• gains and losses on the translation of foreign currency transactions are deemed to be part of operating cash flows this is different from the 
prospectus where it was classified as part of working capital refer to note 14 
• the group’s forecasts and projections taking account of reasonably possible changes in trading performance show that the group should be 
able to operate within the level of its current financing 
• after making enquiries the directors have a reasonable expectation that the group has adequate resources to continue in operat ional existence 
for the foreseeable future the group therefore continues to adap t the going concern basis in preparing its consolidated financial statements 
overview performance governance financial statements shareholder information
annual report and accounts 2010
107 notes to the consolidated financial statements continued 
 
2 significant accounting policies continued 
b new and amended standards adopted by the group 
the following new standards and amendments to standards are applicable and were adopted by the group for the first time for the financial 
year beginning 1 january 2010 
• ifrs 3 revised “business combinations” and consequential amendments to ias 27 revised “consolidated and separate financial 
statements” ias 28 “investments in associates” and ias 31 “interest in joint ventures” are effective prospectively to business combinations 
for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after 1 july 2009 
the revised standard continues to apply the acquisition method to business combinations but with some significant changes compared 
with ifrs 3 for example all payments to purchase a business are recorded at fair value at the acquisition date with contingent payments 
classified as debt subsequently remeasured through the income statement there is a choice on an acquisitionbyacquisition basis to 
measure the noncontrolling interest in the acquiree either at fair value or at the noncontrolling interest in the acquiree either at fair value 
or at the noncontrolling interest’s proportionate share of the acquiree’s net assets all acquisitionrelated costs are expensed 
the revised standard was applied to the acquisition of the controlling interest in tusker gold ltd on 27 april 2010 acquisitionrelated costs 
of us387294 have been recognised in the consolidated income statement which previously would have been included in the consideration 
for the business combination see note 22 for further details of the business combination that occurred in 2010 
ias 27 revised requires the effects of all transactions with noncontrolling interest to be recorded in equity if there is no change in control 
and these transactions will no longer result in goodwill or gains and losses the standard also specifies the accounting when control is lost 
any remaining interest in the entity is remeasured to fair value and a gain or loss is recognised in profit or loss ias 27 revised did not 
have a material impact on the group earnings or equity in the current period  
• ias 36 amendment “impairment of assets” effective 1 january 2010 the amendment clarifies that the largest cashgenerating unit 
or group of units to which goodwill should be allocated for the purposes of impairment testing is an operating segment as defined by 
paragraph 5 of ifrs 8 “operating segments” that is before the aggregation of segments with similar economic characteristics ias 36 
amendment has had no impact on the current period as no impairment was identified when testing goodwill impairment at an operating 
segment level 
• ifrs 2 amendments “group cashsettled sharebased payment transactions” effective from 1 january 2010 in addition to incorporating 
ifric 8 “scope of ifrs 2” and ifric 11 “ifrs 2 group and treasury share transactions” the amendments expand on the guidance in 
ifric 11 to address the classification of group arrangements that were not covered by that interpretation the application of the standard 
did not have a material effect on the group 
c new and amended standards and interpretations mandatory for the first time for the financial year beginning 
1 january 2010 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 periods 
beginning on or after 1 january 2010 or later periods but are currently not relevant to the group 
• ifric 17 “distribution of noncash assets to owners” effective on or after 1 july 2009 the interpretation was published in november 2008 
this interpretation provides guidance on accounting for arrangements whereby an entity distributes noncash assets to shareholders either as 
a distribution of reserves or as dividends ifrs 5 has also been amended to require that assets are classified as held for distribution only when 
they are amended to require that assets are classified as held for distribution only when they are available for distribution in their present 
condition and the distribution is highly probable 
• ifric 18 “transfers of assets from customers” effective for transfer of assets received on or after 1 july 2009 this interpretation clarifies the 
requirements of ifrss for agreements in which an entity receives from a customer an item of property plant and equipment that the entity 
must then use either to connect the customer to a network or to provide the customer with ongoing access to a supply of goods or services 
such as a supply of electricity gas or water in some cases the entity receives cash from a customer that must be used only to acquire or 
construct the item of property plant and equipment in order to connect the customer to a network or provide the customer with ongoing 
access to a supply of goods or services or to do both 
 
108
wwwafricanbarrickgoldcom notes to the consolidated financial statements continued 
 
2 significant accounting policies continued 
b new and amended standards adopted by the group 
the following new standards and amendments to standards are applicable and were adopted by the group for the first time for the financial 
year beginning 1 january 2010 
• ifrs 3 revised “business combinations” and consequential amendments to ias 27 revised “consolidated and separate financial 
statements” ias 28 “investments in associates” and ias 31 “interest in joint ventures” are effective prospectively to business combinations 
for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after 1 july 2009 
the revised standard continues to apply the acquisition method to business combinations but with some significant changes compared 
with ifrs 3 for example all payments to purchase a business are recorded at fair value at the acquisition date with contingent payments 
classified as debt subsequently remeasured through the income statement there is a choice on an acquisitionbyacquisition basis to 
measure the noncontrolling interest in the acquiree either at fair value or at the noncontrolling interest in the acquiree either at fair value 
or at the noncontrolling interest’s proportionate share of the acquiree’s net assets all acquisitionrelated costs are expensed 
the revised standard was applied to the acquisition of the controlling interest in tusker gold ltd on 27 april 2010 acquisitionrelated costs 
of us387294 have been recognised in the consolidated income statement which previously would have been included in the consideration 
for the business combination see note 22 for further details of the business combination that occurred in 2010 
ias 27 revised requires the effects of all transactions with noncontrolling interest to be recorded in equity if there is no change in control 
and these transactions will no longer result in goodwill or gains and losses the standard also specifies the accounting when control is lost 
any remaining interest in the entity is remeasured to fair value and a gain or loss is recognised in profit or loss ias 27 revised did not 
have a material impact on the group earnings or equity in the current period  
• ias 36 amendment “impairment of assets” effective 1 january 2010 the amendment clarifies that the largest cashgenerating unit 
or group of units to which goodwill should be allocated for the purposes of impairment testing is an operating segment as defined by 
paragraph 5 of ifrs 8 “operating segments” that is before the aggregation of segments with similar economic characteristics ias 36 
amendment has had no impact on the current period as no impairment was identified when testing goodwill impairment at an operating 
segment level 
• ifrs 2 amendments “group cashsettled sharebased payment transactions” effective from 1 january 2010 in addition to incorporating 
ifric 8 “scope of ifrs 2” and ifric 11 “ifrs 2 group and treasury share transactions” the amendments expand on the guidance in 
ifric 11 to address the classification of group arrangements that were not covered by that interpretation the application of the standard 
did not have a material effect on the group 
c new and amended standards and interpretations mandatory for the first time for the financial year beginning 
1 january 2010 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 periods 
beginning on or after 1 january 2010 or later periods but are currently not relevant to the group 
• ifric 17 “distribution of noncash assets to owners” effective on or after 1 july 2009 the interpretation was published in november 2008 
this interpretation provides guidance on accounting for arrangements whereby an entity distributes noncash assets to shareholders either as 
a distribution of reserves or as dividends ifrs 5 has also been amended to require that assets are classified as held for distribution only when 
they are amended to require that assets are classified as held for distribution only when they are available for distribution in their present 
condition and the distribution is highly probable 
• ifric 18 “transfers of assets from customers” effective for transfer of assets received on or after 1 july 2009 this interpretation clarifies the 
requirements of ifrss for agreements in which an entity receives from a customer an item of property plant and equipment that the entity 
must then use either to connect the customer to a network or to provide the customer with ongoing access to a supply of goods or services 
such as a supply of electricity gas or water in some cases the entity receives cash from a customer that must be used only to acquire or 
construct the item of property plant and equipment in order to connect the customer to a network or provide the customer with ongoing 
access to a supply of goods or services or to do both 
 
 
 
• ifric 9 “reassessment of embedded derivatives” and ias 39 “financial instruments recognition and measurement” effective 1 july 2009 
this amendment to ifric 9 requires an entity to assess whether an embedded derivative should be separated from a host contract when 
the entity reclassifies a hybrid financial asset out of the “fair value through profit or loss” category this assessment is to be made based on 
circumstances that existed on the later of the date the entity first became a party to the contract and the date of any contract amendments 
that significantly change the cash flows of the contract if the entity is unable to make this assessment the hybrid instrument must remain 
classified as at fair value through profit or loss in its entirety 
• ifric 16 “hedges of a net investment in a foreign operation” effective 1 july 2009 this amendment states that in a hedge of a net 
investment in a foreign operation qualifying hedging instruments may be held by any entity or entities within the group including the 
foreign operation itself as long as the designation documentation and effectiveness requirements of ias 39 that relate to a net investment 
hedge are satisfied in particular the group should clearly document its hedging strategy because of the possibility of different designations 
at different levels of the group 
• ias 38 amendment “intangible assets” effective 1 january 2010 the amendment clarifies guidance in measuring the fair value of an 
intangible asset acquired in a business combination and permits the grouping of intangible assets as a single asset if each asset has a similar 
useful economic life 
• ias 1 amendment “presentation of financial statements” the amendment clarifies that the potential settlement of a liability by the issue 
of equity is not relevant to its classification as current or noncurrent by amending the definition of current liability the amendment permits 
a liability to be classified as noncurrent provided that the entity has an unconditional right to defer settlement by transfer of cash or other 
assets for at least 12 months after the accounting period notwithstanding the fact that the entity could be required by the counterparty to 
settle in shares at any time 
• ifrs 5 amendment “noncurrent assets held for sale and discontinued operations” the amendment clarifies that ifrs 5 specifies the 
disclosures required in respect of noncurrent assets or disposal groups classified as held for sale or discontinued operations it also clarifies 
that the general requirements of ias 1 still apply in particular paragraph 15 to achieve a fair presentation and paragraph 125 sources of 
estimation uncertainty of ias 1 
d new standards amendments and interpretations issued but not effective for the financial year beginning 1 january 
2010 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 
• ifrs 9 “financial instruments” issued in november 2009 this standard is the first step in the process to replace ias 39 “financial 
instruments recognition and measurement” ifrs 9 introduces new requirements for classifying and measuring financial assets t he standard 
is not applicable until 1 january 2013 but is available for early adoption however the standard has not yet been endorsed by the eu  
the group 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 
• ias 24 revised “related party disclosures” issued in november 2009 it supersedes ias 24 “related party disclosures” issued in 2003 ias 
24 revised is mandatory for periods beginning on or after 1 january 2011 earlier application in whole or in part is permitted the revised 
standard clarifies and simplifies the definition of a related party and removes the requirement for governmentrelated entities to disclose 
details of all transactions with the government and other governmentrelated entities the group will apply the revised standard from 
1 january 2011 it is not expected to have any impact on the group’s or the parent entity’s financial statements 
• ias 32 amendment “classification of rights issues” issued in october 2009 the amendment applies to annual periods beginning on or after 
1 february 2010 earlier application is permitted the amendment addresses the accounting for rights issues that are denominated in a currency 
other than the functional currency of the issuer provided certain conditions are met such rights issues are now classified as equity regardless of 
the currency in which the exercise price is denominated previously these issues had to be accounted for as derivative liabili ties the amendment 
applies retrospectively in accordance with ias 8 “accounting policies changes in accounting estimates and errors” the group has not issued 
any rights issues 
 
overview performance governance financial statements shareholder information
annual report and accounts 2010
109 notes to the consolidated financial statements continued 
 
2 significant accounting policies continued  
d new standards amendments and interpretations issued but not effective for the financial year beginning 1 january 
2010 and not early adopted continued 
• ifric 19 “extinguishing financial liabilities with equity instruments” effective 1 july 2010 the interpretation clarifies the accounting by 
an entity when the terms of a financial liability are renegotiated and result in the entity issuing equity instruments to a creditor of the entity 
to extinguish all or part of the financial liability debt for equity swap it requires a gain or loss to be recognised in profit or loss which is 
measured as the difference between the carrying amount of the financial liability and the fair value of the equity instruments issued if the fair 
value of the equity instruments issued cannot be reliably measured the equity instruments should be measured to reflect the fair value of the 
financial liability extinguished the group will apply the interpretation from 1 january 2011 it is not expected to have any impact on the 
group’s or the parent entity’s financial statements 
• ifric 14 amendments “prepayments of a minimum funding requirement” the amendments correct an unintended consequence of  
ifric 14 “ias 19 the limit on a defined benefit asset minimum funding requirements and their interaction” without the amendments 
entities are not permitted to recognise as an asset some voluntary prepayments for minimum funding contributions this was not intended 
when ifric 14 was issued and the amendments correct this the amendments are effective for annual periods beginning 1 january 2011 
earlier application is permitted the amendments should be applied retrospectively to the earliest comparative period presented it is not 
expected to have any impact on the group’s or the 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 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 statements the life of mine plans are 
central to a number of key estimates and are approved by the board of directors annually 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 
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 
• 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 26 
• whether to recognise a liability for loss contingencies and the amount of any such provision – notes 2v 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 fair value of derivative instruments – note 28 and 
• determination of fair value of stock options – note 24 
110
wwwafricanbarrickgoldcom notes to the consolidated financial statements continued 
 
2 significant accounting policies continued  
d new standards amendments and interpretations issued but not effective for the financial year beginning 1 january 
2010 and not early adopted continued 
• ifric 19 “extinguishing financial liabilities with equity instruments” effective 1 july 2010 the interpretation clarifies the accounting by 
an entity when the terms of a financial liability are renegotiated and result in the entity issuing equity instruments to a creditor of the entity 
to extinguish all or part of the financial liability debt for equity swap it requires a gain or loss to be recognised in profit or loss which is 
measured as the difference between the carrying amount of the financial liability and the fair value of the equity instruments issued if the fair 
value of the equity instruments issued cannot be reliably measured the equity instruments should be measured to reflect the fair value of the 
financial liability extinguished the group will apply the interpretation from 1 january 2011 it is not expected to have any impact on the 
group’s or the parent entity’s financial statements 
• ifric 14 amendments “prepayments of a minimum funding requirement” the amendments correct an unintended consequence of  
ifric 14 “ias 19 the limit on a defined benefit asset minimum funding requirements and their interaction” without the amendments 
entities are not permitted to recognise as an asset some voluntary prepayments for minimum funding contributions this was not intended 
when ifric 14 was issued and the amendments correct this the amendments are effective for annual periods beginning 1 january 2011 
earlier application is permitted the amendments should be applied retrospectively to the earliest comparative period presented it is not 
expected to have any impact on the group’s or the 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 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 statements the life of mine plans are 
central to a number of key estimates and are approved by the board of directors annually 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 
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 
• 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 26 
• whether to recognise a liability for loss contingencies and the amount of any such provision – notes 2v 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 fair value of derivative instruments – note 28 and 
• determination of fair value of stock options – note 24 
 
 
f basis of consolidation 
the consolidated financial statements set out the group’s financial position as at 31 december 2010 and 2009 and operating results and cash 
flows for the years then ended the consolidated financial statements of the group incorporate the financial statements of the company and 
companies controlled by the company its subsidiaries 
subsidiaries are entities over which the company has the power directly or indirectly 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 parties 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 non
controlling interests are presented as “invested capital attributable to noncontrolling interests” in the consolidated balance sheet and “net 
profit attributable 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 finalised 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 difference 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 “shillings” south 
african rands “rands” uk pound sterling “pounds” and australian dollars the group has liabilities that are primarily denominated in 
us dollars the us dollar is the company’s and its main subsidiaries’ 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 monetary 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 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 
2010  
average  
year ended  
31 december 
2010  
as at 
31 december 
2009  
average 
year ended 
31 december 
2009 
south african rand us  zar  666 731   738  833 
tanzanian shilling us  tzs  1484 1447   1335 1326 
australian dollars us  aud  098  092   090 079 
uk pound us  gbp   065  065   062  064 
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 disclosure for mineral projects” requirements reports 
to support these estimates are prepared each year proven and pr obable 2p reserves and for certain mines other mineral resou rces 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 
overview performance governance financial statements shareholder information
annual report and accounts 2010
111 notes to the consolidated financial statements continued 
 
2 significant accounting policies continued 
i determination of ore reserves continued 
in assessing the life of a mine for accounting purposes mineral 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 commodities 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 during the development 
stage of a mine or pit in order to provide initial access to the ore body referred to as preproduction stripping are capitalised as mine 
development costs and amortised over the ore reserves of the mine or pit using the units of production method 
stripping costs incurred during the production stage referred to as production stripping are accounted for according to the benefit received by 
the group production stripping costs that benefit the current period are considered costs of current production and represent a component of 
inventory cost which is charged to cost of sales when the related inventory is sold production stripping costs that generate a future economic 
benefit to the group are capitalised as mine development costs and amortised over the ore reserves to be mined in the future on a units of 
production basis similar to the accounting treatment of preproduction stripping costs and included as a component of inventory cost as the 
applicable ore reserves are extracted production stripping costs incurred related to the further development of the mine or pit which 
generally requires a phase of unusually high waste removal activity that is similar to preproduction stripping are considered to generate a 
future economic benefit to the group such production 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 that is the mine or pit is more valuable after the 
waste material has been removed as access to future mineral reserves becomes less costly iii increases the productive capacity or extends the 
productive life of the mine or pit such production phase stripping costs are capitalised as mine development costs  
for periods where production stripping activity generates a future economic benefit the planned life of mine or pit wastetoore tonnes ratio 
the “strip ratio” is considered along with other functions such as the length and intensity of the stripping campaign to determine the amount 
of production stripping costs incurred related to current production versus the amount that relates to the future economic benefit  
where a mine operates several open pits that are regarded as separate operations for the purpose of mine planning stripping costs are 
accounted for separately by reference to the ore reserves from each separate pit ie the initial stripping of the second and subsequent pits 
is considered to be preproduction stripping if however the pits are highly integrated for the purpose of mine planning the second and 
subsequent pits are regarded as extensions of the first pit in accounting for stripping costs in such cases the initial stripping of the second 
and subsequent pits is considered to be production stripping relating to the combined operation 
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 sale 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 
historically all doré sales were made to barrick international banking corporation “bibc” a related party from may 2010 onwards gold 
doré was sold directly to third parties 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 
112
wwwafricanbarrickgoldcom notes to the consolidated financial statements continued 
 
2 significant accounting policies continued 
i determination of ore reserves continued 
in assessing the life of a mine for accounting purposes mineral 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 commodities 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 during the development 
stage of a mine or pit in order to provide initial access to the ore body referred to as preproduction stripping are capitalised as mine 
development costs and amortised over the ore reserves of the mine or pit using the units of production method 
stripping costs incurred during the production stage referred to as production stripping are accounted for according to the benefit received by 
the group production stripping costs that benefit the current period are considered costs of current production and represent a component of 
inventory cost which is charged to cost of sales when the related inventory is sold production stripping costs that generate a future economic 
benefit to the group are capitalised as mine development costs and amortised over the ore reserves to be mined in the future on a units of 
production basis similar to the accounting treatment of preproduction stripping costs and included as a component of inventory cost as the 
applicable ore reserves are extracted production stripping costs incurred related to the further development of the mine or pit which 
generally requires a phase of unusually high waste removal activity that is similar to preproduction stripping are considered to generate a 
future economic benefit to the group such production 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 that is the mine or pit is more valuable after the 
waste material has been removed as access to future mineral reserves becomes less costly iii increases the productive capacity or extends the 
productive life of the mine or pit such production phase stripping costs are capitalised as mine development costs  
for periods where production stripping activity generates a future economic benefit the planned life of mine or pit wastetoore tonnes ratio 
the “strip ratio” is considered along with other functions such as the length and intensity of the stripping campaign to determine the amount 
of production stripping costs incurred related to current production versus the amount that relates to the future economic benefit  
where a mine operates several open pits that are regarded as separate operations for the purpose of mine planning stripping costs are 
accounted for separately by reference to the ore reserves from each separate pit ie the initial stripping of the second and subsequent pits 
is considered to be preproduction stripping if however the pits are highly integrated for the purpose of mine planning the second and 
subsequent pits are regarded as extensions of the first pit in accounting for stripping costs in such cases the initial stripping of the second 
and subsequent pits is considered to be production stripping relating to the combined operation 
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 sale 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 
historically all doré sales were made to barrick international banking corporation “bibc” a related party from may 2010 onwards gold 
doré was sold directly to third parties 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 
 
 
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 time of shipment which is also when risks and rewards pass to the smelting companies using 
forward 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 accounts 
receivable the embedded derivative is recorded at fair value each period until final settlement occurs with changes in fair value classified as 
provisional price adjustments and included as a component of revenue coproduct revenues from the sale of byproducts such as copper and 
silver contained in the concentrate are recognised in revenue 
coproducts 
revenue from the sale of coproducts such as copper and silver contained in concentrates are recognised in revenue as detailed in note 2a 
in the prospectus coproduct revenue was treated as a byproduct and credited to cost of sales as a result of coproduct revenue becoming 
increasingly significant to the group reflected in the 202 yearonyear increase primarily as a result of buzwagi commencing its production 
of copper and increases in copper prices copper sales have been reclassified as coproduct 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 thirdparty 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 this is different to the prospectus in which 
the sale of copper byproducts was credited against cost of sales as noted in notes 2a and 2k 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 incurred 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 converting 
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 already 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 criteria 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 the deposit 
and the net cash flows expected to be generated from its development costs incurred at brownfield 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 for the 
purposes of extending an existing mineral deposit that is classified within proven and probable reserves and is already being mined or 
developed are also capitalised as mine development costs  
overview performance governance financial statements shareholder information
annual report and accounts 2010
113 notes to the consolidated financial statements continued 
 
2 significant accounting policies continued 
m exploration and evaluation continued 
evaluation expenditures 
evaluation expenditures arise from a detailed assessment of deposits or other projects that have been identified as having economic 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 preparation of 
scoping prefeasibility and final feasibility studies 
evaluation expenditures incurred at greenfield sites are expensed as incurred evaluation expenditures incurred at brownfield sites 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 classified 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 demonstrated under the same criteria 
described above for exploration and evaluation expenditures  
n earnings per share 
basic earnings per share is computed by dividing 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 for 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 represents 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 maintenance 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 together with the cost of inventory produced in a period  
114
wwwafricanbarrickgoldcom notes to the consolidated financial statements continued 
 
2 significant accounting policies continued 
m exploration and evaluation continued 
evaluation expenditures 
evaluation expenditures arise from a detailed assessment of deposits or other projects that have been identified as having economic 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 preparation of 
scoping prefeasibility and final feasibility studies 
evaluation expenditures incurred at greenfield sites are expensed as incurred evaluation expenditures incurred at brownfield sites 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 classified 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 demonstrated under the same criteria 
described above for exploration and evaluation expenditures  
n earnings per share 
basic earnings per share is computed by dividing 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 for 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 represents 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 maintenance 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 together 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 estimated 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 stockpiling the ore and include direct labour costs materia ls and contractor 
expenses which are directly attributable to the extraction of ore including an alloca tion of stripping costs attributable to current period production 
an allocation of capitalised stripping costs an allocation of mine site overhead costs and depreciation of mining properties and property plant and 
equipment used in the extraction of ore 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 
provisions are recorded to reduce ore stockpiles in process and finished goods inventory to net realisable value where the 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 calcul ated 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 cost 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 stripping 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 life of an asset are capitalised costs incurred that do not extend the productive 
capacity or useful economic life of an asset are considered 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 substance 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 leasing 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 payment is allocated 
between the liability and finance costs using the effective interest method whereby a constant rate of interest expense is recognised 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 the lease term  
all other leases are classified as operating leases operating lease payments are recognised as an expense in the income statement on a straight
line basis over the lease term  
overview performance governance financial statements shareholder information
annual report and accounts 2010
115 notes to the consolidated financial statements continued 
 
2 significant accounting policies continued 
p property plant and equipment continued 
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 transferred 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 development 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 the 
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 over its useful life or over the remaining life of the mine if shorter on a straight line 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 are available for their intended use in 
applying the units of production method depreciation is normally calculated using the quantity of gold copper 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 confidence 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 discrete sections include capitalised underground development costs 
or production stripping costs incurred for the purposes of providing access to specific ore blocks or areas of the mine and which 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 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 estimate 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 the 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 of 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 the 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  
116
wwwafricanbarrickgoldcom notes to the consolidated financial statements continued 
 
2 significant accounting policies continued 
p property plant and equipment continued 
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 transferred 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 development 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 the 
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 over its useful life or over the remaining life of the mine if shorter on a straight line 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 are available for their intended use in 
applying the units of production method depreciation is normally calculated using the quantity of gold copper 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 confidence 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 discrete sections include capitalised underground development costs 
or production stripping costs incurred for the purposes of providing access to specific ore blocks or areas of the mine and which 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 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 estimate 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 the 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 of 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 the 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 impairment 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 there is any indication that the carrying amount may not be recoverable  
an impairment loss recognised in prior years for nonfinancial assets other than goodwill shall be reversed if and only if there 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 
the recoverable amount of an asset is assessed by reference to the higher of value in use “viu” being the net present value “npv” of future 
cash flows expected to be generated by the asset and fair value less costs to sell “fvlcs” impairment assessments are conducted 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 the group may obtain in a sale transaction on an arm’s length basis there is 
no active market for the group’s cgus consequently fvlcs is derived using discounted cash flow techniques 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 selling 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 derived from estimates of projected future revenues future cash costs of 
production and capital expenditures contained in the life of mine “lom” plan for each cgu which are 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 research 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 wastetoore 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 there is a high 
degree of confidence in their economic extraction this is consistent with the approach that a market participant would utilise in preparing 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 curves 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 incurred 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 significant 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 current spot price the forward pricing curve and longterm oil price 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 
historical country risk premiums and average credit default swap spreads for the period 
overview performance governance financial statements shareholder information
annual report and accounts 2010
117 notes to the consolidated financial statements continued 
 
2 significant accounting policies continued 
s impairment of noncurrent assets continued 
in determining fvlcs a market multiple is applied to the npv of each cgu gold companies typically trade at a market capitalisation 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 the determination of the fvlcs of a cgu consider the npv multiples observed on 
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 with a remaining economic life of five years or less an npv multiple 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 when 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  
noncontrolling interests 
u 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 
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 the 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 rehabilitation activity expected to occur progressively over the life of 
the operation and at the time of closure in connection with disturbances at the reporting date estimated costs included in the determination of 
the provision reflect the risks and probabilities of alternative estimates of cash flow s required to settle the obligation at each particular operation 
routine operating costs that may impact the ultimate closure and rehabilitation activities such as waste material handling conducted as an 
integral part of a mining or production process are not included in the provision costs arising from unforeseen circumstances such as the 
contamination caused by unplanned discharges are recognised as an expense and liability when the event occurs that gives rise to an obligation 
and reliable estimates of the required rehabilitation 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 asset 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 periods 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 discount 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 deducted from the related asset and depreciated prospectively over the asset’s 
useful life 
118
wwwafricanbarrickgoldcom notes to the consolidated financial statements continued 
 
2 significant accounting policies continued 
s impairment of noncurrent assets continued 
in determining fvlcs a market multiple is applied to the npv of each cgu gold companies typically trade at a market capitalisation 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 the determination of the fvlcs of a cgu consider the npv multiples observed on 
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 with a remaining economic life of five years or less an npv multiple 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 when 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  
noncontrolling interests 
u 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 
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 the 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 rehabilitation activity expected to occur progressively over the life of 
the operation and at the time of closure in connection with disturbances at the reporting date estimated costs included in the determination of 
the provision reflect the risks and probabilities of alternative estimates of cash flow s required to settle the obligation at each particular operation 
routine operating costs that may impact the ultimate closure and rehabilitation activities such as waste material handling conducted as an 
integral part of a mining or production process are not included in the provision costs arising from unforeseen circumstances such as the 
contamination caused by unplanned discharges are recognised as an expense and liability when the event occurs that gives rise to an obligation 
and reliable estimates of the required rehabilitation 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 asset 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 periods 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 discount 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 deducted 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 requirements 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 where a reduction in the provision is greater than the remaining net 
book value of the related assets in which case the value is redu ced to nil and the remaining adjustment is recognised in the i ncome statement 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 of 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”  
sharebased payments 
issue of stock options 
stock options can be granted under either the company ltip or the stock option plan the company receives services from employees as 
consideration for equity instruments options of the group the fair value of the employee services received in exchange for 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 targets 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 
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 exercise where 
shares are issued the proceeds received net of any directly attributable transaction costs are credited to share capital nominal value 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 grant 
date fair value is recognised over the vesting period as an increase to investment in subsidiary undertakings with a corresponding credit 
to equity  
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 dividends 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 recognised on a straight
line basis over the vesting period with a corresponding charge to the compensation expense at the grant date the fair value o f the awards is 
determined from the market value of the shares at the date of aw ard and adjusted for any market based vesting conditions attach ed to the award 
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 corresp onding 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 forfei ture 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  
overview performance governance financial statements shareholder information
annual report and accounts 2010
119 notes to the consolidated financial statements continued 
 
2 significant accounting policies continued 
w employee benefits continued 
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 these 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 compensation expense  
defined contribution plan 
the group’s tanzanian employees are members of either the national social security fund “nssf” or of the parastatal pension fund 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 employee 
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 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 statement cash and cash equivalents consist of cash and cash equivalents 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 are 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 discounted 
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 when 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 and if so 
the nature of the item being hedged 
120
wwwafricanbarrickgoldcom notes to the consolidated financial statements continued 
 
2 significant accounting policies continued 
w employee benefits continued 
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 these 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 compensation expense  
defined contribution plan 
the group’s tanzanian employees are members of either the national social security fund “nssf” or of the parastatal pension fund 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 employee 
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 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 statement cash and cash equivalents consist of cash and cash equivalents 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 are 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 discounted 
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 when 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 and if so 
the nature of the item being hedged 
 
 
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 clearly 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 amortised 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 drawdown 
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 pre
payment 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 rate 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 effective 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 
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 
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 enacted 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 
differences 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 recognition of goodwill or of an asset or liability in a transaction 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 temporary 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 deductible 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 temporary differences arises from the initial recognition of an asset or liability in a 
transaction that is not a business combination and at the time of the transaction affects neit her the accounting profit nor t axable 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  
overview performance governance financial statements shareholder information
annual report and accounts 2010
121 notes to the consolidated financial statements continued 
 
2 significant accounting policies continued 
z taxes continued 
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 tax 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 equity 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 periods 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 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 year end 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 smelter 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 thirdparty smelting refining and transportation costs  
the buzwagi mine is also subject to a net profits interest “npi” arrangement and a production sharing arrangement held by separate third 
parties the npi is calculated as a percentage of profits realised from the buzwagi mine after all capital exploration and development 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 the 
production sharing arrangement commences after 2 million ounces of gold have been produced as at 31 december 2010 375050 ounces have 
been produced after this level of production us1 per ounce produced is payable based on a gold price of us300 per ounce and the amount 
must be increased pro rata to reflect current gold prices  
the north mara mine is also subject to a land royalty land tenements “lt” based on the net revenue derived from the open pit 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 30npi
 the npi is calculated as a percentage of profits realised from the buzwagi mine after all capital exploration and development 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 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 
 
122
wwwafricanbarrickgoldcom notes to the consolidated financial statements continued 
 
2 significant accounting policies continued 
z taxes continued 
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 tax 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 equity 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 periods 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 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 year end 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 smelter 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 thirdparty smelting refining and transportation costs  
the buzwagi mine is also subject to a net profits interest “npi” arrangement and a production sharing arrangement held by separate third 
parties the npi is calculated as a percentage of profits realised from the buzwagi mine after all capital exploration and development 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 the 
production sharing arrangement commences after 2 million ounces of gold have been produced as at 31 december 2010 375050 ounces have 
been produced after this level of production us1 per ounce produced is payable based on a gold price of us300 per ounce and the amount 
must be increased pro rata to reflect current gold prices  
the north mara mine is also subject to a land royalty land tenements “lt” based on the net revenue derived from the open pit 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 30npi
 the npi is calculated as a percentage of profits realised from the buzwagi mine after all capital exploration and development 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 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 
 
 
 
3 segment reporting 
the group has only one primary product produced in a single geographic location being gold produced in tanzania in addition the group 
produces copper and silver as a coproduct reportable operating segments are based on the internal reports provided to the chief operating 
decision maker “codm” to evaluate segment performance decide how to allocate resources and make other operating decisions after 
applying the aggregation criteria and quantitative thresholds contained in ifrs 8 the group’s reportable operating segments were determined 
to be north mara gold mine tulawaka gold mine bulyanhulu gold mine buzwagi gold mine and a separate corporate and exploration 
segment which primarily 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 and receivables capital expenditures comprise additions to 
property plant and equipment segment liabilities are not reported since they are not considered by the codm as material to segment 
performance the group has also included segment cash operating costs  
segment information for the reportable operating segments of the group for the years ended 31 december 2010 and 31 december 2009 is set 
out below 
  for the year ended 31 december 2010 
in thousands of united states dollars  north mara  tulawaka  bulyanhulu  buzwagi  other  total 
gold revenue  268762 78499 327847 246194   – 921302 
coproduct revenue  804 148 31977 20790   – 53719 
total segment revenue
1
  269566 78647 359824 266984   – 975021 
segment cash operating cost
2
  103983 45450 173491 156600   50297 529821 
other charges
3
  12743 5865 5100 14408   353 26033 
ebitda
4 5
  152840 39062 181233 95976   49944 419167 
depreciation and amortisation  28018 10622 28386 39087   3402 109515 
ebit
4
   124822 28440 152847 56889   53346 309652 
total segment finance income         1202 
total segment finance expense        1777
profit before tax         309077 
income tax expense         86471
net profit for the period         222606 
 
capital expenditure 
         
sustaining  26217 9748 71387 18844   7116 133312 
expansionary  59043 2758 357 973   – 63131 
rehabilitation asset adjustment  6182 3007 8795 9964   – 27948 
total capital expenditure  91442 15513 80539 29781   7116 224391 
           
cash costs          
segmental cash operating cost
2
  103983 45450 173491 156600   – 479524 
deduct coproduct revenue  804 148 31977 20790  – 53719
total cash costs   103179 45302 141514 135810   – 425805 
sold ounces
6
  218684 63909 262442 198221   – 743256 
cash cost per ounce sold4  472 709 539 685   – 573 
equity ounce adjustment
7
     4
attributable cash cost per ounce sold4         569
overview performance governance financial statements shareholder information
annual report and accounts 2010
123 notes to the consolidated financial statements continued 
 
3 segment reporting continued 
  for the year ended 31 december 2009 
in thousands of united states dollars  north mara  tulawaka  bulyanhulu  buzwagi  other  total 
gold revenue  204760 90446 244513 153693   – 693412 
coproduct revenue  753 160 16669 188   – 17770 
total segment revenue
1
  205513 90606 261182 153881   – 711182 
segment cash operating cost
2
  107174 38757 182665 65081   46630 440307 
other charges
3
  9511 1988 19976 2581   12637 21419 
ebitda
4 5
  88828 49861 58541 86219   33993 249456 
depreciation and amortisation  25890 20935 26894 16991   2640 93350 
ebit
4
   62938 28926 31647 69228   36633 156106 
total segment finance income         361 
total segment finance expense        6062
profit before tax         150405 
income tax expense         84388
net profit for the period         66017 
 
capital expenditure 
         
sustaining  28012 2546 56694 8059  389 95700 
expansionary  17876 3655 2286 87851   – 111668 
rehabilitation asset adjustment  226 1683 603 13388   – 15900 
total capital expenditure  46114 7884 59583 109298   389 223268 
           
cash costs          
segmental cash operating cost
2
  107174 38757 182665 65081    393677 
deduct coproduct revenue  753 160 16669 188  17770
total cash costs   106421 38597 165996 64893    375907 
sold ounces
6
  209495 93413 255121 153682    711711 
cash cost per ounce sold4  508 413 651 422    528 
equity ounce adjustment
7
    5
attributable cash cost per ounce sold4    533
1 revenue includes the incidental revenue derived from the sale of coproducts previously coproduct revenue was regarded as byproducts and included in cost of sales 2009 figures 
have been restated 
2 the chief decision maker reviews cash operating costs for the four operating mine sites separately from corporate administration costs and exploration costs consequently the 
group has reported these costs in this manner 
3 foreign exchange gains and losses were included in cash operating costs as per the prospectus in the analysis above they have been reclassified to other charges 
4 these are nonifrs financial performance measures with no standard meaning under ifrs refer to ‘non ifrs measures’ on page 54 for definitions 
5 indirect corporate administration costs previously oncharged to the sites have been excluded from the individual site’s ebitda and included in other for 2010 and 2009  
6 reflects 100 of ounces sold 
7 reflects the adjustment for noncontrolling interests at tulawaka 
in thousands of united states dollars  
as at 
31 december 
2010  
as at 
31 december 
2009 
segment assets     
north mara  603739 528667
tulawaka  104003 93612
bulyanhulu  1109740 1026668
buzwagi  724467 664383
other
8 9
  385159 51898
total segment assets  2927108 2365228
8 during the current year assets to the value of us102 million were acquired from the purchase of tusker net cash proceeds of us269 million were received from the ipo 
9 assets relating to restrictive share unit liabilities of us75 million have been reclassified and offset against the liability this is different to the prospectus where the asset was shown 
separately as part of noncurrent assets as this amount has an immaterial impact on the opening position no opening balance sheet is presented 
124
wwwafricanbarrickgoldcom notes to the consolidated financial statements continued 
 
3 segment reporting continued 
  for the year ended 31 december 2009 
in thousands of united states dollars  north mara  tulawaka  bulyanhulu  buzwagi  other  total 
gold revenue  204760 90446 244513 153693   – 693412 
coproduct revenue  753 160 16669 188   – 17770 
total segment revenue
1
  205513 90606 261182 153881   – 711182 
segment cash operating cost
2
  107174 38757 182665 65081   46630 440307 
other charges
3
  9511 1988 19976 2581   12637 21419 
ebitda
4 5
  88828 49861 58541 86219   33993 249456 
depreciation and amortisation  25890 20935 26894 16991   2640 93350 
ebit
4
   62938 28926 31647 69228   36633 156106 
total segment finance income         361 
total segment finance expense        6062
profit before tax         150405 
income tax expense         84388
net profit for the period         66017 
 
capital expenditure 
         
sustaining  28012 2546 56694 8059  389 95700 
expansionary  17876 3655 2286 87851   – 111668 
rehabilitation asset adjustment  226 1683 603 13388   – 15900 
total capital expenditure  46114 7884 59583 109298   389 223268 
           
cash costs          
segmental cash operating cost
2
  107174 38757 182665 65081    393677 
deduct coproduct revenue  753 160 16669 188  17770
total cash costs   106421 38597 165996 64893    375907 
sold ounces
6
  209495 93413 255121 153682    711711 
cash cost per ounce sold4  508 413 651 422    528 
equity ounce adjustment
7
    5
attributable cash cost per ounce sold4    533
1 revenue includes the incidental revenue derived from the sale of coproducts previously coproduct revenue was regarded as byproducts and included in cost of sales 2009 figures 
have been restated 
2 the chief decision maker reviews cash operating costs for the four operating mine sites separately from corporate administration costs and exploration costs consequently the 
group has reported these costs in this manner 
3 foreign exchange gains and losses were included in cash operating costs as per the prospectus in the analysis above they have been reclassified to other charges 
4 these are nonifrs financial performance measures with no standard meaning under ifrs refer to ‘non ifrs measures’ on page 54 for definitions 
5 indirect corporate administration costs previously oncharged to the sites have been excluded from the individual site’s ebitda and included in other for 2010 and 2009  
6 reflects 100 of ounces sold 
7 reflects the adjustment for noncontrolling interests at tulawaka 
in thousands of united states dollars  
as at 
31 december 
2010  
as at 
31 december 
2009 
segment assets     
north mara  603739 528667
tulawaka  104003 93612
bulyanhulu  1109740 1026668
buzwagi  724467 664383
other
8 9
  385159 51898
total segment assets  2927108 2365228
8 during the current year assets to the value of us102 million were acquired from the purchase of tusker net cash proceeds of us269 million were received from the ipo 
9 assets relating to restrictive share unit liabilities of us75 million have been reclassified and offset against the liability this is different to the prospectus where the asset was shown 
separately as part of noncurrent assets as this amount has an immaterial impact on the opening position no opening balance sheet is presented 
 
 
4 revenue 
in thousands of united states dollars  
for the year ended 
31 december 
2010  
for the year ended 
31 december 
2009 
gold doré sales   576839 540617 
gold concentrate sales
1
  344463 152795 
copper concentrate sales
2
  47279 14531 
silver sales
2
  6440 3239 
total  975021 711182 
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 us32 million for the year ended 31 december 2010 2009 us12 million  
2 revenue from the sale of coproducts such as copper and silver contained in concentrates is recognised in revenue as detailed in note 2a per the prospectus coproduct revenue 
was treated as a byproduct and credited to cost of sales management’s decision to make this change was a result of coproduct revenue becoming increasingly significant to the 
group increasing 202 yearonyear primarily as a result of buzwagi commencing its production of copper but also due to an increases in copper prices copper sales have been 
reclassified to revenue where they are disclosed as a coproduct 
in thousands of united states dollars  
for the year ended 
31 december 
2010  
for the year ended 
31 december 
2009 
revenue by location of customer
3
    
europe  
switzerland  576839 540617 
germany  32491 3914 
asia  
china  298676 118896 
japan  67015 47755 
total revenue  975021 711182 
3 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 2010 are revenues of approximately us567 million 2009 us104 million which arose 
from sales to two of the group’s largest customers during the year ended 31 december 2009 as well as the first quarter of 2010 all gold doré 
sales were made to bibc a related party refer to note 32 2010 us185 million 2009 us540 million no other customers individually 
account for more than 10 of the group’s revenues 
5 cost of sales 
in thousands of united states dollars  
for the year ended 
31 december 
2010  
for the year ended 
31 december 
2009 
direct mining costs
1
  447974  370766 
depreciation
2
  109515  93350 
royalty expense  31550  22911 
total
3
  589039  487027 
1 direct mining costs includes charges to reduce the cost of inventory to net realisable value as follows us nil for the year ended 31 december 2010 2009 us23 million  
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 financial statements shareholder information
annual report and accounts 2010
125 notes to the consolidated financial statements continued 
 
6 employee benefits 
in thousands of united states dollars  
for the year ended 
31 december 
2010  
for the year ended 
31 december 
2009 
wages and salaries  113221 106352 
other employee benefits
1
  51193 27035 
sharebased payments charge
2
  3756 40 
total  168170 133427 
1 other employee benefits include bonuses leave pay pensions medical expenses and other benefits 
2 further details of the group’s stock options and other share based payment plans are given in note 24 
details of directors’ remuneration can be found in the remuneration report on pages 87 to 95 
average number of employees 
in thousands  
for the year ended 
31 december 
2010  
for the year ended 
31 december 
2009 
operations  4351  3993 
administration  226  186 
total average headcount  4577  4179 
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 
2010  
for the year ended 
31 december 
2009 
expensed during the year    
north mara  – 1402 
buzwagi  – 3023 
tulawaka  2343 2242 
bulyanhulu  419 –
other
1
  12099 2204 
total expensed  14861 8871 
capitalised during the year    
north mara  8065 950 
buzwagi  973 – 
tulawaka  2758 1641 
bulyanhulu  357 170 
total capitalised  12153 2761 
total  27014 11632 
1 included in “other” are the exploration activities conducted through barrick exploration africa ltd all primary greenfield exploration and evaluation activities are conducted in 
this company  
 
126
wwwafricanbarrickgoldcom notes to the consolidated financial statements continued 
 
6 employee benefits 
in thousands of united states dollars  
for the year ended 
31 december 
2010  
for the year ended 
31 december 
2009 
wages and salaries  113221 106352 
other employee benefits
1
  51193 27035 
sharebased payments charge
2
  3756 40 
total  168170 133427 
1 other employee benefits include bonuses leave pay pensions medical expenses and other benefits 
2 further details of the group’s stock options and other share based payment plans are given in note 24 
details of directors’ remuneration can be found in the remuneration report on pages 87 to 95 
average number of employees 
in thousands  
for the year ended 
31 december 
2010  
for the year ended 
31 december 
2009 
operations  4351  3993 
administration  226  186 
total average headcount  4577  4179 
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 
2010  
for the year ended 
31 december 
2009 
expensed during the year    
north mara  – 1402 
buzwagi  – 3023 
tulawaka  2343 2242 
bulyanhulu  419 –
other
1
  12099 2204 
total expensed  14861 8871 
capitalised during the year    
north mara  8065 950 
buzwagi  973 – 
tulawaka  2758 1641 
bulyanhulu  357 170 
total capitalised  12153 2761 
total  27014 11632 
1 included in “other” are the exploration activities conducted through barrick exploration africa ltd all primary greenfield exploration and evaluation activities are conducted in 
this company  
 
 
8 other charges 
in thousands of united states dollars  
for the year ended 
31 december 
2010  
for the year ended 
31 december 
2009 
other expenses    
loss on disposal of property plant and equipment   90 1204
discounting of indirect tax receivables   6808 6903
environmental cleanup   – 878
severance payments   – 969
foreign exchange losses net
1
  7863 10705
unrealised nonhedge derivative losses   3658 –
asset writedown   – 143
transaction cost associated with listing   2575 –
social development cost   3467 1026
insurance
2
  1840 –
buzwagi fuel claim
3
   2539 –
other   3577 861
total   32417 22689
 
other income  
insurance proceeds  4535 – 
other
4
   1849 1270
total   6384 1270
 
total other charges  26033 21419 
1 gains and losses on the translation of foreign currency translations are deemed to be part of other charges this has been reclassified since the prospectus where it was classified as 
part of corporate administration 
2 preipo insurance costs were borne by the parent company bgc and not recharged 
3 fuel duty receivable previously recognised has been derecognised following the buzwagi fuel theft incident  
4 other income represents the gain recognised following the waiving of payables balances owed to related parties  
foreign exchange differences on working capital items 
during the year the group experienced the following foreign exchange difference relating to working capital items 
in thousands of united states dollars  
for the year ended 
31 december 
2010  
for the year ended 
31 december 
2009 
loss on foreign exchange differences relating to working capital items  10698  10893 
overview performance governance financial statements shareholder information
annual report and accounts 2010
127 notes to the consolidated financial statements continued 
 
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 
2010  
for the year ended 
31 december 
2009 
audit fees    
fees payable for the audit of the parent company and consolidated financial statements  384 –
fees payable to the company’s auditor and its associates for other services   
audit of the company’s subsidiaries pursuant to legislation  547 484 
other services pursuant to legislation  133 46
tax services  202 249 
other services in connection with the capital raising
1
  1314 4630 
other services  162 –
total  2742 5409 
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 
2010  
for the year ended 
31 december 
2009 
interest on time deposits  720 361 
other  482 – 
total  1202 361 
b finance expense 
in thousands of united states dollars  
for the year ended 
31 december 
2010  
for the year ended 
31 december 
2009 
unwinding of discount note 26  1365 1169 
interest on bank overdraft and external debt  202 4893 
other
1
  210 – 
total
2
  1777 6062 
1 included in “other” finance expense is the amortisation of the fee relating to the revolving credit facility  
2 for cash flow purposes unwinding of discount is excluded from the finance expense movement  
 
128
wwwafricanbarrickgoldcom notes to the consolidated financial statements continued 
 
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 
2010  
for the year ended 
31 december 
2009 
audit fees    
fees payable for the audit of the parent company and consolidated financial statements  384 –
fees payable to the company’s auditor and its associates for other services   
audit of the company’s subsidiaries pursuant to legislation  547 484 
other services pursuant to legislation  133 46
tax services  202 249 
other services in connection with the capital raising
1
  1314 4630 
other services  162 –
total  2742 5409 
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 
2010  
for the year ended 
31 december 
2009 
interest on time deposits  720 361 
other  482 – 
total  1202 361 
b finance expense 
in thousands of united states dollars  
for the year ended 
31 december 
2010  
for the year ended 
31 december 
2009 
unwinding of discount note 26  1365 1169 
interest on bank overdraft and external debt  202 4893 
other
1
  210 – 
total
2
  1777 6062 
1 included in “other” finance expense is the amortisation of the fee relating to the revolving credit facility  
2 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 
2010  
for the year ended 
31 december 
2009 
current tax    
current tax on profits for the period  291 – 
adjustments in respect of prior years  – –
total current tax  291 –
deferred tax note 20    
origination and reversal of temporary differences  86180 84388 
total deferred tax  86180 84388 
income tax expense  86471 84388 
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 
2010  
for the year ended 
31 december 
2009 
profit before tax  309077 150405 
tax calculated at domestic tax rates applicable to profits in the respective countries  88186 45130 
tax effects of    
nontaxable incomeexpenses not deductible for tax purposes  2908 3995 
tax losses for which no deferred income tax asset was recognised  4347 2883
prior year adjustments  2201 1681 
adjustment to unrecognised tax benefits carried forward
1
  – 36892
effect of tax rates in foreign jurisdictions  63 2
other  890 425
tax charge  86471 84388 
1 the 2009 reconciliation includes an amount of us369 million relating to an increase in the amount of unrecognised tax benefits carried forward the adjustment reflects 
uncertainty regarding recoverability of certain tax losses and gives rise to an increased deferred tax charge the group anticipates that the amount of unrecognised tax benefits 
may change within 12 months of the reporting date through a potential settlement with tax authorities which may result in an adjustment to available tax losses 
the tax rate in tanzania is 30 and in south africa 28 for both years presented  
tax periods remain open to review by the tanzanian revenue authority “tra” in respect of income taxes for five years following the date 
of the filing of the corporate tax return during which time the authorities have the right to raise additional tax assessments including penalties 
and interest under certain circumstances the reviews may cover longer periods because a number of tax periods remain open to review by tax 
authorities there is a risk that transactions that have not been challenged in the past by the authorities may be challenged by them in the future 
and this may result in the raising of additional tax assessments plus penalties and interest the 2009 reconciliation includes an amount of 
us369 million relating to an increase in the amount of unrecognised tax benefits carried forward the adjustment reflects uncertainty 
regarding recoverability of certain tax losses and gives rise to an increased deferred tax charge the group anticipates that the amount of 
unrecognised tax benefits may change within 12 months of the reporting date through a potential settlement with tax authorities which may 
result in an adjustment to available tax losses with the exception of the adjustment made in 2009 in respect of unrecognised tax benefits the 
group has made no further provision in respect of such tax assessments refer to note 31 
overview performance governance financial statements shareholder information
annual report and accounts 2010
129 notes to the consolidated financial statements continued 
 
12 earnings per share 
basic earnings per share “eps” is calculated by dividing profit for the period attributable to owners of the company by the weighted average 
number of ordinary shares in issue during the period 
for the purpose of calculating eps the share capital for the company in the period prior to the preipo reorganisation on 22 february 2010 is 
calculated as if this reorganisation was completed as at 1 january 2009 
diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares outstanding to assume conversion of all 
dilutive potential ordinary shares the company has dilutive potential ordinary shares in the form of stock options the weighted average 
number of shares is adjusted for the number of shares granted assuming the exercise of stock options 
at 31 december 2010 and 31 december 2009 earnings per share have been calculated as follows  
in thousands of united states dollars  
for the year ended 
31 december 
2010  
for the year ended 
31 december 
2009 
earnings    
profit from continuing operations attributable to owners of the parent  218103 58577 
 
weighted average number of ordinary shares in issue
1
  410085499 410085499 
adjusted for dilutive effect of    
– stock options  18482 –
weighted average number of ordinary shares for diluted earnings per share  410103981 410085499 
 
earnings per share    
basic earnings per share from continuing operations  532 143 
dilutive earnings per share from continuing operations  532 143
1 the prior year basic earnings per share comparative was calculated using the 2010 number of average weighted shares as the company had not been formed in the prior year and had 
no share capital 
13 dividends 
an interim dividend of us66 million us16 cents per share was paid during 2010 and recognised in the financial statements refer to 
note 34 for details of the final dividend declared subsequent to year end 
14 cash flow – other items 
a operating cash flows – other items 
in thousands of united states dollars  
for the year ended 
31 december 
2010  
for the year ended 
31 december 
2009 
adjustments for noncash income statement items    
foreign exchange losses  7585 10569 
provision added  67 4600 
unrealised loss on derivative copper options  3658 – 
stock option expense  640 – 
other noncash items  443 136 
exchange loss on revaluation of cash balances  278 136 
total  11785 15441 
 
130
wwwafricanbarrickgoldcom notes to the consolidated financial statements continued 
 
12 earnings per share 
basic earnings per share “eps” is calculated by dividing profit for the period attributable to owners of the company by the weighted average 
number of ordinary shares in issue during the period 
for the purpose of calculating eps the share capital for the company in the period prior to the preipo reorganisation on 22 february 2010 is 
calculated as if this reorganisation was completed as at 1 january 2009 
diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares outstanding to assume conversion of all 
dilutive potential ordinary shares the company has dilutive potential ordinary shares in the form of stock options the weighted average 
number of shares is adjusted for the number of shares granted assuming the exercise of stock options 
at 31 december 2010 and 31 december 2009 earnings per share have been calculated as follows  
in thousands of united states dollars  
for the year ended 
31 december 
2010  
for the year ended 
31 december 
2009 
earnings    
profit from continuing operations attributable to owners of the parent  218103 58577 
 
weighted average number of ordinary shares in issue
1
  410085499 410085499 
adjusted for dilutive effect of    
– stock options  18482 –
weighted average number of ordinary shares for diluted earnings per share  410103981 410085499 
 
earnings per share    
basic earnings per share from continuing operations  532 143 
dilutive earnings per share from continuing operations  532 143
1 the prior year basic earnings per share comparative was calculated using the 2010 number of average weighted shares as the company had not been formed in the prior year and had 
no share capital 
13 dividends 
an interim dividend of us66 million us16 cents per share was paid during 2010 and recognised in the financial statements refer to 
note 34 for details of the final dividend declared subsequent to year end 
14 cash flow – other items 
a operating cash flows – other items 
in thousands of united states dollars  
for the year ended 
31 december 
2010  
for the year ended 
31 december 
2009 
adjustments for noncash income statement items    
foreign exchange losses  7585 10569 
provision added  67 4600 
unrealised loss on derivative copper options  3658 – 
stock option expense  640 – 
other noncash items  443 136 
exchange loss on revaluation of cash balances  278 136 
total  11785 15441 
 
 
 
adjustments for working capital items  
in thousands of united states dollars 
 
for the year ended 
31 december 
2010 
 
for the year ended 
31 december 
2009 
trade receivables  2384 16822
inventories
1
  18446 91619
other current assets  48802 2757
other liabilities
2
  6527 7055
trade and other payables
3
  28513 33621 
working capital adjustments relating to tusker acquisition note 22  3734 – 
other working capital items
4
  6336 10705
total  84248 81227
1 the inventory adjustment includes both the movement in inventories as well as the noncurrent portion of inventory  
2 the other liabilities adjustment includes both the movement in current and noncurrent liabilities  
3 the trade and other payables adjustment excludes statutory liabilities in the form of income tax payable  
4 other working capital items includes exchange losses associated with working capital as well as one off type working capital adjustments relating to minority interest and 
intercompany settlements  
b investing cash flows – other items 
in thousands of united states dollars  
for the year ended 
31 december 
2010  
for the year ended 
31 december 
2009 
proceeds on sale of property plant and equipment  183 138 
other longterm receivables
5
  4033 31806
village housing receivable  135 419
tusker options movement  9696 – 
movement in rehabilitation liability  27948 15901 
total  14537 16186
5 noncurrent asset movement relates to the investment in the powerline and land acquisitions reflected as prepaid operating leases tanzania government receivables village housing 
project and other items note that for 2010 the longterm indirect tax movement has been reflected as part of working capital in the cash flow from operational activities section 
which amounted to us367 million us265 million was classified in 2009 in the noncurrent asset movement as part of the cash flow from investing activities  
15 inventories 
in thousands of united states dollars  
as at 
31 december 
2010  
as at 
31 december 
2009 
raw materials    
ore in stockpiles  34412 87514 
mine operating supplies  140411 130771 
work in process  36568 38883 
finished products    
gold dorébullion  5936 5969 
gold copper and silver concentrate  10647 15513 
total current portion of inventory  227974 278650 
noncurrent ore in stockpiles
1
  69122 – 
total  297096 278650 
1 during 2010 us691 million of ore at buzwagi and north mara was classified as long term following management’s assessment that these stockpiles will be processed after 2011 
overview performance governance financial statements shareholder information
annual report and accounts 2010
131 notes to the consolidated financial statements continued 
 
16 trade and other current assets 
in thousands of united states dollars  
as at 
31 december 
2010  
as at 
31 december 
2009 
trade receivables    
amounts due from doré and concentrate sales  46491 16219 
other receivables
1
  11621 9662 
due from related parties note 32  2131 37518 
less provision for doubtful debt on other receivables  1029 1801
total  59214 61598 
1 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 ordinary course 
of business if collection is expected in one year or less they are classified as current assets if not they are presented as 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 according to the original terms of the receivables 
in thousands of united states dollars  
as at 
31 december 
2010  
as at 
31 december 
2009 
other current assets    
current portion of indirect tax receivables
2
  58048 51339 
other debtors and advance payments
3
  12055 6142 
insurance receivable  325 830 
total  70428 58311 
2 the total indirect tax receivable is us1212 million of which us632 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 tax payments to reflect the time value of money the longterm portion of this receivable has been discounted at a rate of 57 
3 other debtors and advance payments relates to prepayments for insurance 
17 cash and cash equivalents 
in thousands of united states dollars  
as at 
31 december 
2010  
as at 
31 december 
2009 
cash at bank and on hand  389158 69726 
money market funds  11854 – 
total  401012 69726 
 
132
wwwafricanbarrickgoldcom notes to the consolidated financial statements continued 
 
16 trade and other current assets 
in thousands of united states dollars  
as at 
31 december 
2010  
as at 
31 december 
2009 
trade receivables    
amounts due from doré and concentrate sales  46491 16219 
other receivables
1
  11621 9662 
due from related parties note 32  2131 37518 
less provision for doubtful debt on other receivables  1029 1801
total  59214 61598 
1 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 ordinary course 
of business if collection is expected in one year or less they are classified as current assets if not they are presented as 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 according to the original terms of the receivables 
in thousands of united states dollars  
as at 
31 december 
2010  
as at 
31 december 
2009 
other current assets    
current portion of indirect tax receivables
2
  58048 51339 
other debtors and advance payments
3
  12055 6142 
insurance receivable  325 830 
total  70428 58311 
2 the total indirect tax receivable is us1212 million of which us632 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 tax payments to reflect the time value of money the longterm portion of this receivable has been discounted at a rate of 57 
3 other debtors and advance payments relates to prepayments for insurance 
17 cash and cash equivalents 
in thousands of united states dollars  
as at 
31 december 
2010  
as at 
31 december 
2009 
cash at bank and on hand  389158 69726 
money market funds  11854 – 
total  401012 69726 
 
 
 
18 property plant and equipment 
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        
cost  1125072 1005279   124285 2254636 
accumulated depreciation  328073 311445  – 639518
net carrying amount  796999 693834   124285 1615118 
 
 
for the year ended 31 december 2009 
in thousands of united states dollars  
 plant and 
equipment  
 mineral 
properties and 
mine development 
costs   
 assets under 
construction
1
   total 
at 1 january 2009 net of accumulated depreciation  365067 587642   430406 1383115 
additions  – –   223268 223268 
disposalswritedowns  1342 –   – 1342
depreciation  72297 34672  – 106969
transfers between categories  492694 72060   564754 – 
at 31 december 2009  784122 625030   88920 1498072 
 
at 1 january 2009        
cost  578457 803182   430406 1812045 
accumulated depreciation  213390 215540  – 428930
net carrying amount  365067 587642   430406 1383115 
 
at 31 december 2009 net of accumulated depreciation       
cost  1067766 875242   88920 2031928 
accumulated depreciation  283644 250212  – 533856
net carrying amount  784122 625030   88920 1498072 
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 acquisition and the subsequent costs incurred to develop 
the mine once these assets are ready for their intended use the balance is transferred to plant and equipment andor mineral properties and mine development costs 
property plant and equipment includes assets relating to the design and construction costs of power transmission lines and related 
infrastructure at completion ownership was transferred to tanesco in exchange for amortised repayment in the form of reduced e lectricity 
supply charges no future lease payment obligations are payable under these finance leases 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 
2010  
as at 
31 december 
2009 
cost – capitalised finance leases   46822 46822 
accumulated depreciation   4203 773
net carrying amount   42619 46049 
overview performance governance financial statements shareholder information
annual report and accounts 2010
133 notes to the consolidated financial statements continued 
 
19 goodwill and intangible assets 
for the year ended 31 december 2010  
in thousands of united states dollars  goodwill  
acquired 
exploration 
and evaluation 
properties  total 
opening net book amount
1
  156397   – 156397 
additions
2
  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 
 
for the year ended 31 december 2009  
in thousands of united states dollars  goodwill  
mineral 
properties  total 
opening net book amount  156397   – 156397 
closing net book value  156397   – 156397 
 
at 31 december 2009       
cost   372875   – 372875 
accumulated impairment  216478  – 216478
net book amount  156397   – 156397 
1 the group’s opening goodwill arose from the acquisition of a subsidiary of placer dome inc on 19 january 2006 the “acquisition date” by barrick gold corporation the goodwill 
allocated to the group has been presented as if the group acquired this business as of the acquisition date 
2 additions to acquired exploration properties and goodwill relate to the acquisition of tusker gold ltd and are provisional pending receipt of the final valuation refer to note 22 for 
further details 
goodwill and accumulated impairment losses by operating segments 
in thousands of united states dollars   north mara  bulyanhulu  tulawaka  other  total 
at 1 january 2009  21046 121546 13805   – 156397 
at 1 january 2010  21046 121546 13805   – 156397 
additions
3
  – – –  22023 22023 
at 31 december 2010  21046 121546 13805   22023 178420 
cost   237524 121546 13805   22023 394898 
accumulated impairments  216478 – –  – 216478
3 goodwill amounting to us22 million arose on the group’s acquisition of tusker gold ltd on 27 april 2010 refer to note 22 for further details 
in accordance with ias 38 “intangible assets” a review for impairment of goodwill is 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  
2010  
for the year ended 
31 december 
2009 
longterm gold price per ounce  1150
4
   950
south african rand uszar  800
5
  900
tanzanian shilling ustzs  1400  1320
longterm oil price per barrel  75  75 
discount rates  712867  8791037
npv multiples  120180  190200
4 shortterm gold price of 1250 per ounce used for 2011 and 2012 cash flow forecast 
5 shortterm exchange rate of 750 used for 2011 and 2012 cash flow forecast 
134
wwwafricanbarrickgoldcom notes to the consolidated financial statements continued 
 
19 goodwill and intangible assets 
for the year ended 31 december 2010  
in thousands of united states dollars  goodwill  
acquired 
exploration 
and evaluation 
properties  total 
opening net book amount
1
  156397   – 156397 
additions
2
  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 
 
for the year ended 31 december 2009  
in thousands of united states dollars  goodwill  
mineral 
properties  total 
opening net book amount  156397   – 156397 
closing net book value  156397   – 156397 
 
at 31 december 2009       
cost   372875   – 372875 
accumulated impairment  216478  – 216478
net book amount  156397   – 156397 
1 the group’s opening goodwill arose from the acquisition of a subsidiary of placer dome inc on 19 january 2006 the “acquisition date” by barrick gold corporation the goodwill 
allocated to the group has been presented as if the group acquired this business as of the acquisition date 
2 additions to acquired exploration properties and goodwill relate to the acquisition of tusker gold ltd and are provisional pending receipt of the final valuation refer to note 22 for 
further details 
goodwill and accumulated impairment losses by operating segments 
in thousands of united states dollars   north mara  bulyanhulu  tulawaka  other  total 
at 1 january 2009  21046 121546 13805   – 156397 
at 1 january 2010  21046 121546 13805   – 156397 
additions
3
  – – –  22023 22023 
at 31 december 2010  21046 121546 13805   22023 178420 
cost   237524 121546 13805   22023 394898 
accumulated impairments  216478 – –  – 216478
3 goodwill amounting to us22 million arose on the group’s acquisition of tusker gold ltd on 27 april 2010 refer to note 22 for further details 
in accordance with ias 38 “intangible assets” a review for impairment of goodwill is 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  
2010  
for the year ended 
31 december 
2009 
longterm gold price per ounce  1150
4
   950
south african rand uszar  800
5
  900
tanzanian shilling ustzs  1400  1320
longterm oil price per barrel  75  75 
discount rates  712867  8791037
npv multiples  120180  190200
4 shortterm gold price of 1250 per ounce used for 2011 and 2012 cash flow forecast 
5 shortterm exchange rate of 750 used for 2011 and 2012 cash flow forecast 
 
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 
2010  
as at 
31 december 
2009 
tax losses  195693 179968 
total  195693 179968 
deferred tax assets have not been recognised in respect of these items due to uncertainties regarding availability of tax losses or there being 
uncertainty regarding future taxable income against which these assets can be utilised 
recognised deferred tax assets and liabilities 
deferred tax assets and liabilities are attributable to the following 
  assets  liabilities  net 
balance sheet classifications 
in thousands of united states dollars   2010  2009  2010  2009  2010  2009 
property plant and equipment  – – 441758 410293   441758 410293 
provisions  12994 7124 – –  12994 7124
interest deferrals  7213 16175 – –  7213 16175
tusker acquisition  – – 22023 –  22023 – 
tax loss carryforwards  428658 480289 – –  428658 480289
net deferred tax assetsliabilities  448865 503588 463781 410293   14916 93295
 
 
  assets   liabilities   net  
legal entities  
in thousands of united states dollars   2010  2009  2010  2009  2010  2009 
north mara gold mine limited  – 21520 13865 –   13865 21520
bulyanhulu gold mine limited  121116 159668 – –   121116 159668
pangea minerals limited  – – 100297 87410   100297 87410 
other  153 – 22023 483   21870 483 
net deferred tax assetsliabilities  121269 181188 136185 87893   14916 93295
uncertainties regarding availability of tax losses in respect of enquiries raised and additional tax assessments issued by the tra have been 
measured using the single best estimate of likely outcome approach resulting in the recognition of substantially all the related deferred tax assets 
and liabilities alternative acceptable measurement policies eg on a weighted average expected outcome basis could result in a change to 
deferred tax assets and liabilities being recognised and the deferred tax charge in the income statement 
overview performance governance financial statements shareholder information
annual report and accounts 2010
135 notes to the consolidated financial statements continued 
 
21 other assets 
in thousands of united states dollars  
as at 
31 december 
2010  
as at 
31 december 
2009 
amounts due from government
1
  24844 23098 
operating lease prepayments – tanesco powerlines  4210 3876 
prepayments – acquisition of rights over leasehold land
2
  7444 6933 
noncurrent portion of indirect tax receivable
3
  63174 26489 
village housing  465 600 
other
4
  4321 290
total  104458 61286 
1 included in this amount are amounts receivable from the tanzanian social security fund of us81 million 2009 us67 million as well as amounts due from tanesco for 
us153 million 2009 us164 million 
2 prepayment made to the villagers 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 57 2009 719 this resulted in a discounting 
charge of us68 million 2009 us69 million to the income statement refer note 8 
4 assets relating to restrictive share unit liabilities of us75 million have been reclassified and offset against the liability this is different to the prospectus where the asset was shown 
separately as part of noncurrent assets as this amount has an immaterial impact on the opening position no opening balance sheet is presented 
22 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 
exchange as part of the acquisition all of tusker’s assets are located in tanzania and consist of a significant gold resource base and additional 
exploration ground 
details of the purchase consideration the net assets acquired and goodwill are as follows 
in thousands of united states dollars  2010 
– purchase consideration  74232 
– foreign gain on cash settlement recognised in other charges  3109
total purchase consideration  71123 
the assets and liabilities as of 27 april 2010 recognised as a result of the acquisition are as follows 
in thousands of united states dollars  fair value  
acquiree’s 
carrying amount 
cash and cash equivalents  8014 8014 
property plant and equipment  115 115 
exploration and evaluation assets  79533 5740 
receivables   314 314 
deferred taxation liability  22023 – 
payables  4048 884
stock options  9696 9696
fair value of net assets  52209 3603 
goodwill  22023  
total purchase consideration  74232  
purchase consideration   74232 
foreign gain on cash settlement recognised in other charges   3109
cash and cash equivalent in subsidiary acquired   8014
net cash outflow on acquisition   63109 
the goodwill arose after the application of ias 12 “income taxes” and is attributable principally to expanding growth opportunities in 
tanzania none of the goodwill is expected to be deductible for tax purposes the fair value of the acquired identifiable intangible assets 
goodwill and deferred tax liability is provisional pending receipt of the final valuations for those assets 
136
wwwafricanbarrickgoldcom notes to the consolidated financial statements continued 
 
21 other assets 
in thousands of united states dollars  
as at 
31 december 
2010  
as at 
31 december 
2009 
amounts due from government
1
  24844 23098 
operating lease prepayments – tanesco powerlines  4210 3876 
prepayments – acquisition of rights over leasehold land
2
  7444 6933 
noncurrent portion of indirect tax receivable
3
  63174 26489 
village housing  465 600 
other
4
  4321 290
total  104458 61286 
1 included in this amount are amounts receivable from the tanzanian social security fund of us81 million 2009 us67 million as well as amounts due from tanesco for 
us153 million 2009 us164 million 
2 prepayment made to the villagers 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 57 2009 719 this resulted in a discounting 
charge of us68 million 2009 us69 million to the income statement refer note 8 
4 assets relating to restrictive share unit liabilities of us75 million have been reclassified and offset against the liability this is different to the prospectus where the asset was shown 
separately as part of noncurrent assets as this amount has an immaterial impact on the opening position no opening balance sheet is presented 
22 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 
exchange as part of the acquisition all of tusker’s assets are located in tanzania and consist of a significant gold resource base and additional 
exploration ground 
details of the purchase consideration the net assets acquired and goodwill are as follows 
in thousands of united states dollars  2010 
– purchase consideration  74232 
– foreign gain on cash settlement recognised in other charges  3109
total purchase consideration  71123 
the assets and liabilities as of 27 april 2010 recognised as a result of the acquisition are as follows 
in thousands of united states dollars  fair value  
acquiree’s 
carrying amount 
cash and cash equivalents  8014 8014 
property plant and equipment  115 115 
exploration and evaluation assets  79533 5740 
receivables   314 314 
deferred taxation liability  22023 – 
payables  4048 884
stock options  9696 9696
fair value of net assets  52209 3603 
goodwill  22023  
total purchase consideration  74232  
purchase consideration   74232 
foreign gain on cash settlement recognised in other charges   3109
cash and cash equivalent in subsidiary acquired   8014
net cash outflow on acquisition   63109 
the goodwill arose after the application of ias 12 “income taxes” and is attributable principally to expanding growth opportunities in 
tanzania none of the goodwill is expected to be deductible for tax purposes the fair value of the acquired identifiable intangible assets 
goodwill and deferred tax liability is provisional pending receipt of the final valuations for those assets 
 
 
included in payables is the fair value of a contingent liability of us35 million this relates to a us46 million payment required to be made 
to the vendor on commencement of commercial production at nyanzaga the assessed possibility that nyanzaga has the potential to reach 
commercial production within four years is 75 
acquisition costs incurred relating to the tusker acquisition amounted to us04 million and were all expensed as incurred 
cancellation of options  
a total of 12450000 stock options were held by tusker directors and employees at the time of the acquisition the holders of all options 
irrevocably agreed to cancel their options in exchange for a consideration of us81 million which formed part of the consideration  
on 31 december 2009 tusker announced that it had appointed argonaut securities ltd to provide assistance with any future capital raisings 
based on the terms of the arrangement argonaut will be remunerated for its services by tusker agreeing to issue argonaut with two million 
options with an exercise price of us30 cents two million options with an exercise price of us50 cents and a further four million options with 
an exercise price of us80 cents the argonaut agreement was cancelled in exchange for payment of an amount of us16 million  
expenses  
the acquired business contributed expenses of us765822 to the group for the period from 30 april 2010 to 31 december 2010 if the acquisition 
had occurred on 1 january 2010 consolidated loss for the year ended 31 december 2010 would have been us27 million these amounts have 
been calculated using the group’s accounting policies 
23 share capital 
  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 
incorporation of company and preipo reorganisation  
the company was incorporated and registered in england and wales on 12 january 2010 as a private limited company with a share capital of 
one ordinary share of £1  
on 19 february 2010 the company entered into a share exchange agreement pursuant to which it acquired the entire issued share capital of 
buk holdco ltd an intermediate holding company of members of the group from members of barrick gold corporation’s group in return 
for issuing 943464 ordinary shares of £1 each at a premium of £999 per share  
on 22 february 2010 the company entered into a share exchange agreement pursuant to which it acquired the entire issued share capital of 
1816962 ontario inc from bgc an intermediate holding company of members of the group in return for issuing 375000 ordinary shares of 
£1 each at a premium of £999 per share  
the company subsequently entered into a reduction of capital eliminating share premium of us1989138 to create distributable reserves 
and restructured its share capital so as to reduce the nominal value of each of its ordinary shares to 10 pence following the share capital 
restructuring the company made a bonus issue of shares to its then existing shareholders in preparation for the ipo resulting in a total of 
303246950 ordinary shares being in issue prior to the ipo  
reregistration of the company as a public company  
on 12 march 2010 the company reregistered as a public limited company  
issuance of shares on ipo  
on 24 march 2010 the company successfully completed its ipo a total number of 101082317 shares with a par value of 10 pence each were 
issued at a price of 575 pence per share for a total of £581223322 us886365567 net of underwriter fees on 15 april 2010 the company 
issued a further 5756232 ordinary shares at a price of 575 pence per share for a total of £33098334 us52275508 pursuant to the exercise 
of the overallotment option granted in connection with the ipo total costs related to the issuance of new shares taken against share premium 
amounted to us539 million 
overview performance governance financial statements shareholder information
annual report and accounts 2010
137 notes to the consolidated financial statements continued 
 
24 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 middlemarket quotation 
of such shares as derived from the london stock exchange daily 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 none of the options granted were exercisable at 31 december 2010 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
2010  
options  
2010  
average exercise 
price in pence 
per share 
2009  
options 
2009 
at 1 january  – –  – –
granted  539 1326459  – –
forfeited  568 105000  – –
at 31 december  536 1211459  – –
the weighted average fair value of the options granted during the current year using the lattice valuation approach was determined as 180 
pence per option the significant inputs into the model were weighted average share and exercise price of 539 pence at the grant date volatility 
range of 32 to 50 dividend yield of 057 an expected option life of seven years annual riskfree interest rate of 283 and suboptimal 
exercise multiple of 15x 
cashsettled restricted share units are granted to executive directors and to selected employees further disclosures over these plans are not 
provided as the related charge and liabilities are not material to the group  
25 trade and other payables 
in thousands of united states dollars  
as at 
31 december 
2010  
as at 
31 december 
2009 
trade payables  23133 17105 
accrued expenses  72889 96120 
payrollrelated payables  10405 6116 
contract retentions  1503 2488 
royalty payable  8482 9023 
income tax payable  309 18 
trade payables to related parties note 32  3240 17322 
total  119961 148192 
trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers 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 30–60 days 
138
wwwafricanbarrickgoldcom notes to the consolidated financial statements continued 
 
24 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 middlemarket quotation 
of such shares as derived from the london stock exchange daily 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 none of the options granted were exercisable at 31 december 2010 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
2010  
options  
2010  
average exercise 
price in pence 
per share 
2009  
options 
2009 
at 1 january  – –  – –
granted  539 1326459  – –
forfeited  568 105000  – –
at 31 december  536 1211459  – –
the weighted average fair value of the options granted during the current year using the lattice valuation approach was determined as 180 
pence per option the significant inputs into the model were weighted average share and exercise price of 539 pence at the grant date volatility 
range of 32 to 50 dividend yield of 057 an expected option life of seven years annual riskfree interest rate of 283 and suboptimal 
exercise multiple of 15x 
cashsettled restricted share units are granted to executive directors and to selected employees further disclosures over these plans are not 
provided as the related charge and liabilities are not material to the group  
25 trade and other payables 
in thousands of united states dollars  
as at 
31 december 
2010  
as at 
31 december 
2009 
trade payables  23133 17105 
accrued expenses  72889 96120 
payrollrelated payables  10405 6116 
contract retentions  1503 2488 
royalty payable  8482 9023 
income tax payable  309 18 
trade payables to related parties note 32  3240 17322 
total  119961 148192 
trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers 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 30–60 days 
 
 
26 provisions 
  rehabilitation1  other2  total 
in thousands of united states dollars  2010  2009  2010  2009  2010  2009 
at 1 january  72164 55095 11400 6800   83564 61896 
additions  27948 15900 67 4600   28015 20500 
unwinding of discount  1365 1169 – –  1365 1169 
at 31 december  101477 72164 11467 11400   112944 83565 
current portion  – – 4000 –  4000 –
noncurrent portion  101477 72164 7467 11400   108944 83565 
1 rehabilitation provisions relate to the decommissioning costs ex pected 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 2014 and 2034 and beyond varying f rom 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  
27 financial assets and liabilities 
a financial assets 
  carrying value  fair value 
in thousands of united states dollars  2010  2009  2010  2009 
cash and cash equivalents  401012 69726   401012 69726 
accounts receivable  59214 61598   59214 61598 
total other assets
1
  174886 119597   174886 119597
total financial assets  635112 250921   635112 250921 
less current financial assets      
cash and cash equivalents  401012 69726  401012 69726 
accounts receivable  59214 61598  59214 61598 
other current assets note 16  70428 58311  70428 58311 
total other noncurrent financial assets note 21  104458 61286   104458 61286 
1 assets relating to restrictive share unit liabilities of us75 million have been reclassified and offset against the liability this is different to the prospectus where the asset was shown 
separately as part of noncurrent assets as this amount has an immaterial impact on the opening position no opening balance sheet is presented 
the fair value of financial assets excluding other assets equal their carrying amount as the impact of discounting is not sig nificant included in other 
assets are indirect tax receivables from the tanzanian revenue authority which have been discounted to their present value refer to note 16 and 
note 21 
b financial liabilities 
  carrying value  fair value 
in thousands of united states dollars  2010  2009  2010  2009 
derivative financial instruments  3658 –  3658 –
related party debt  – 1383415   – 1383415 
other liabilities
2
  7483 4748   7483 4748 
total   11141 1388163   11141 1388163
less current financial liabilities        
derivative financial instruments  1904 –  1904 –
less current portion of related party debt
3
  – 1383415  – 1383415
total noncurrent portion of net borrowings  9237 4748   9237 4748
2 assets relating to restrictive share unit liabilities of us75 million have been reclassified and offset against the liability this is different to the prospectus where the asset was shown 
separately as part of noncurrent assets as this amount has an immaterial impact on the opening position no opening balance sheet is presented 
3 related party debt was repaid during the current financial year by cash amounting to us575 million and converting us1039 m illion to contributed surplus 
the fair value of the current portion of borrowings held in 2009 excluding other liabilities was equal to their carrying amou nt as they were 
repayable on demand other liabilities relate to equity settled stock option plans and their valuation is based on unadjusted quoted prices in 
active markets for identical financial instruments 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  
overview performance governance financial statements shareholder information
annual report and accounts 2010
139 notes to the consolidated financial statements continued 
 
27 financial assets and liabilities continued 
b financial liabilities continued 
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 the term of the facility is 24 months and when drawn the spread over libor will be 350 basis 
points at 31 december 2010 none of the funds were drawn under the facility while a commitment fee of 14 was payable the shares of all 
significant subsidiaries have been pledged as security for the loan 
28 derivative financial instruments 
during 2010 the group entered into zero cost collars to manage copper price fluctuations in the price of copper 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 fair value of these 
copper options are recorded as a component of other incomeexpense in the income statement at 31 december 2010 the group had 21826 
thousand pounds of collar contracts outstanding containing purchased put and call options with an average strike price of us325 per pound 
and us477 per pound respectively the group did not have any derivative financial instruments in 2009 
in thousands of united states dollars  realised losses  
unrealised losses 
resulting from 
markedtomarket 
adjustments  total net loss  
total balance 
sheet impact of 
markedtomarket 
adjustments 
commodity derivatives        
copper collar  – 3658   3658 3658 
total  – 3658   3658 3658 
 
in thousands of united states dollars  
for the year ended 
31 december 
2010  
for the year ended 
31 december 
2009 
analysed between    
current liabilities  1904 – 
noncurrent liabilities  1754 – 
total  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 quantitave disclosures are included throughout 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 maintain 
a disciplined and constructive control environment in which all employees understand their roles and obligations 
the board of directors has responsibility for overseeing how management 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 controls and 
procedures the results of which are reported to the audit committee 
140
wwwafricanbarrickgoldcom notes to the consolidated financial statements continued 
 
27 financial assets and liabilities continued 
b financial liabilities continued 
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 the term of the facility is 24 months and when drawn the spread over libor will be 350 basis 
points at 31 december 2010 none of the funds were drawn under the facility while a commitment fee of 14 was payable the shares of all 
significant subsidiaries have been pledged as security for the loan 
28 derivative financial instruments 
during 2010 the group entered into zero cost collars to manage copper price fluctuations in the price of copper 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 fair value of these 
copper options are recorded as a component of other incomeexpense in the income statement at 31 december 2010 the group had 21826 
thousand pounds of collar contracts outstanding containing purchased put and call options with an average strike price of us325 per pound 
and us477 per pound respectively the group did not have any derivative financial instruments in 2009 
in thousands of united states dollars  realised losses  
unrealised losses 
resulting from 
markedtomarket 
adjustments  total net loss  
total balance 
sheet impact of 
markedtomarket 
adjustments 
commodity derivatives        
copper collar  – 3658   3658 3658 
total  – 3658   3658 3658 
 
in thousands of united states dollars  
for the year ended 
31 december 
2010  
for the year ended 
31 december 
2009 
analysed between    
current liabilities  1904 – 
noncurrent liabilities  1754 – 
total  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 quantitave disclosures are included throughout 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 maintain 
a disciplined and constructive control environment in which all employees understand their roles and obligations 
the board of directors has responsibility for overseeing how management 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 controls 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 exchange 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 by numerous 
industry and macroeconomic factors that are beyond the group’s control in 2010 the price ranged from us1058 to us1431 per ounce 
with an average market price of us1225 per ounce 2009 us972 per ounce the group’s policy is to sell gold at prevailing market prices 
copper price  
during 2010 the group entered into zero cost collars to manage copper price fluctuations see note 28 for additional details in 2010 the price 
ranged from us276 to us444 per pound with an average market price of us342 per pound 2009 us322 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 2010 oil prices traded 
between us63 and us92 per barrel with an average market price of us80 per barrel the group currently has no oil price hedging in place 
but may consider opportunities to hedge against oil price exposure in the future 
the table below summarises the impact of changes in the market price on 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 silver and diesel prices is not material to 
the group’s profit after tax 
gain associated with 10 increase from year end price 
in thousands of united states dollars  
effect on 
profit after tax 
for the year ended 
31 december
2010  
effect on 
profit after tax 
for the year ended 
31 december
2009 
gold  62556 46235 
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 mine operating costs and corporate administration 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 earnings which are reported in us dollars the vast majority of all direct mining costs and 
corporate administration costs are denominated and settled in us dollars consequently the effect of foreign exchange fluctuations on the 
group’s reported direct mining and corporate administration costs is not significant  
the exchange rates at the end of each financial year are detailed in note 2 h 
under normal market conditions the group does not generally believe that active currency hedging of transactions would provide longterm 
benefits to shareholders historically the relationship between the gold price and the value of the shilling and rand provide a natural hedge 
against fluctuations in the exchange rate of these currencies against the us dollar generally a strengthening of the shillingrand which would 
cause an increase in reported us dollar operating costs corresponds with an increase in the us dollar gold price which results in an increase in 
reported us dollar revenues this natural protection significantly reduces the need for using derivatives or other forms of synthetic hedging 
however the group reviews its exposure on a regular basis and reserves the right to enter into foreign currency hedges should the 
circumstances warrant any such currency protection measures deemed appropriate by management are subject to approval by the board 
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
2010  
as at 
31 december
2009 
indirect tax receivables  121222  84731 
total  121222 84731 
overview performance governance financial statements shareholder information
annual report and accounts 2010
141 notes to the consolidated financial statements continued 
 
29 financial risk management continued 
a market risk including commodity price foreign currency and interest rate risks continued 
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
2010  
effect on 
profit after tax 
for the year ended 
31 december
2009 
increasedecrease associated with 10 change of the us dollar     
us dollar strengthens by 10 to the tanzanian shilling     
increase in total indirect tax receivables  13469 9330 
us dollar weakens by 10 to the tanzanian shilling    
decrease in total indirect tax receivables  11020 7634
interest rate risk 
interest rate risk refers to the risk that the value of a financial instrument or cash flows associated with the instruments will 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 exposed 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 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  
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 instrument for cash and 
cash equivalents and trade and other receivables credit risk represents the carrying amount on the balance sheet net of any overdraft 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 cash 
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 2010 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 certain 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 
the amendments which should allow for the fiscal and tax terms of our mdas to be honoured as at 31 december 2010 the discounted 
outstanding amounts due to the group were approximately us121 million the group is in discussions with the authorities to agree terms 
for the repayment of these amounts which is likely to be by way of tax offsets further detail is included in notes 16 21 and 31 b 
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 the 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 financial assets are with 
counterparties whom the group considers 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 27 the group does not 
hold collateral as security for any trade receivables the group does not grade the credit quality of receivables  
142
wwwafricanbarrickgoldcom notes to the consolidated financial statements continued 
 
29 financial risk management continued 
a market risk including commodity price foreign currency and interest rate risks continued 
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
2010  
effect on 
profit after tax 
for the year ended 
31 december
2009 
increasedecrease associated with 10 change of the us dollar     
us dollar strengthens by 10 to the tanzanian shilling     
increase in total indirect tax receivables  13469 9330 
us dollar weakens by 10 to the tanzanian shilling    
decrease in total indirect tax receivables  11020 7634
interest rate risk 
interest rate risk refers to the risk that the value of a financial instrument or cash flows associated with the instruments will 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 exposed 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 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  
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 instrument for cash and 
cash equivalents and trade and other receivables credit risk represents the carrying amount on the balance sheet net of any overdraft 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 cash 
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 2010 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 certain 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 
the amendments which should allow for the fiscal and tax terms of our mdas to be honoured as at 31 december 2010 the discounted 
outstanding amounts due to the group were approximately us121 million the group is in discussions with the authorities to agree terms 
for the repayment of these amounts which is likely to be by way of tax offsets further detail is included in notes 16 21 and 31 b 
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 the 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 financial assets are with 
counterparties whom the group considers 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 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 sufficient 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 int ernal requirements 
prudent liquidity risk management includes maintaining sufficient cash balances and the availability of funding from an adequate amount of 
committed credit facilities at the end of both 2010 and 2009 the group was in a positive net cash position as disclosed in note 17 details of 
the undrawn revolving credit facility are given in note 27 
in the ordinary course of business the group receives cash proceeds from its operations and is required to fund working capital and capital 
expenditure requirements the cash is managed to ensure surplus funds are invested to maximise returns while ensuring that capital 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 primary 
source of liquidity is operating cash flow and over the past two years the group has generated an average of about us2696 million per year 
the principal risk factor affecting operating cash flow is market gold prices  
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 us1145 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 contractual 
undiscounted cash flows these balances may not agree with the amounts disclosed in the balance sheet 
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 
 
 
for the year ended 31 december 2009  
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  69726 – –   – 69726 
accounts receivable  61598 – –   – 61598 
other receivables
2
  58311 61286 –   – 119597 
total  189635 61286 –  – 250921 
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 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
1
  119652 – –  – 119652
total  125348 5765 3472   – 134585 
 
for the year ended 31 december 2009  
in thousands of united states dollars 
 
less than 
1 year  
1 to 3 
years  
3 to 5  
years  
over 5 
years  total 
related party debt  1383415 – –   – 1383415 
other liabilities
2
  3364 1384 –   – 4748 
trade and other payables  148192 – –  – 148192
total  1534971 1384 –   – 1536355 
1 trade and other payables exclude statutory liabilities in the form of income tax payable  
2 assets relating to restrictive share unit liabilities of us75 million have been reclassified and offset against the liability this is different to the prospectus where the asset was shown 
separately as part of noncurrent assets as this amount has an immaterial impact on the opening position no opening balance sheet is presented 
overview performance governance financial statements shareholder information
annual report and accounts 2010
143 notes to the consolidated financial statements continued 
 
29 financial risk management continued 
c liquidity risk continued 
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 and low gearing 
ratio management thoroughly evaluates all material projects and potential acquisitions and is approved by the senior leadership team before 
submission to the board for ultimate approval where applicable  
at 31 december the gearing ratio was as follows 
in thousands of united states dollars 
 
as at 
31 december 
2010 
 
as at
31 december 
2009 
total borrowings including related party debt  – 1531607 
less cash and cash equivalents  401012 69726
net surplusdebt  401012 1461881 
total equity  2543085 657415 
total capital  2142073  2119296 
gearing ratio
3
  na 222 
3 the gearing ratio is calculated by dividing the net surplusdebt by total equity 
30 operating lease arrangements 
in thousands of united states dollars 
 
for the year ended 
31 december 
2010 
 
for the year ended 
31 december 
2009 
minimum lease payments under operating leases recognised in income for the period  556  –
total  556  – 
at the balance sheet date the group had outstanding commitments for future minimum lease payments under noncancellable operating 
leases which fall due as follows 
in thousands of united states dollars 
 
as at 
31 december 
2010 
 
as at 
31 december 
2009 
within one year  984  –
in the second to fifth years inclusive  2459  –
after five years  1718  –
total  5161  –
operating lease payments relate mainly to rental of office 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 2010 the group has 
the following commitments andor contingencies 
a legal contingencies 
as at 31 december 2010 the group was a defendant in approximately 240 lawsuits the plaintiffs are claiming damages and interest thereon for 
the loss caused by the group due to one or more of the following unlawful eviction termination of services wrongful termination of contracts 
of service 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 monetary damages are sought amounted to us44 million the group’s legal 
counsel is defending the group’s current position and the outcome of the lawsuits cannot presently be determined however in the opinion of 
the directors and group’s legal counsel no material liabilities are expected to materialise from these lawsuits consequently no provision has 
been set aside against the claims in the books of account 
144
wwwafricanbarrickgoldcom notes to the consolidated financial statements continued 
 
29 financial risk management continued 
c liquidity risk continued 
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 and low gearing 
ratio management thoroughly evaluates all material projects and potential acquisitions and is approved by the senior leadership team before 
submission to the board for ultimate approval where applicable  
at 31 december the gearing ratio was as follows 
in thousands of united states dollars 
 
as at 
31 december 
2010 
 
as at
31 december 
2009 
total borrowings including related party debt  – 1531607 
less cash and cash equivalents  401012 69726
net surplusdebt  401012 1461881 
total equity  2543085 657415 
total capital  2142073  2119296 
gearing ratio
3
  na 222 
3 the gearing ratio is calculated by dividing the net surplusdebt by total equity 
30 operating lease arrangements 
in thousands of united states dollars 
 
for the year ended 
31 december 
2010 
 
for the year ended 
31 december 
2009 
minimum lease payments under operating leases recognised in income for the period  556  –
total  556  – 
at the balance sheet date the group had outstanding commitments for future minimum lease payments under noncancellable operating 
leases which fall due as follows 
in thousands of united states dollars 
 
as at 
31 december 
2010 
 
as at 
31 december 
2009 
within one year  984  –
in the second to fifth years inclusive  2459  –
after five years  1718  –
total  5161  –
operating lease payments relate mainly to rental of office 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 2010 the group has 
the following commitments andor contingencies 
a legal contingencies 
as at 31 december 2010 the group was a defendant in approximately 240 lawsuits the plaintiffs are claiming damages and interest thereon for 
the loss caused by the group due to one or more of the following unlawful eviction termination of services wrongful termination of contracts 
of service 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 monetary damages are sought amounted to us44 million the group’s legal 
counsel is defending the group’s current position and the outcome of the lawsuits cannot presently be determined however in the opinion of 
the directors and group’s legal counsel no material liabilities are expected to materialise from these lawsuits consequently no provision has 
been set aside against the claims in the books of account 
 
 
included in the total amounts claimed of us44 million is a lawsuit instituted against north mara gold mine ltd and genkuru village in which 
the plaintiffs claim us29 million the case is based on a claim resulting from alleged illegal action by east africa gold mine ltd north mara’s 
predecessors entering the area where the plaintiffs allege they had claim of right the area in question was given by genuru village to the mine 
to conduct mining activities and a licence to that effect was issued compensation to occupiers of land was handed over to the government for 
distribution subsequent to year end this claim was struck out by the court of appeal of tanzania 
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 believes 
that these assessments are incorrect and has filed objections to each of them the group is attempting to resolve these matters by 
means of discussions with the tra management is of the opinion that this will not result in any material liabilities to the group 
c exploration and development agreement 
pursuant to an agreement with the government of the united repu blic of tanzania entered into in 1996 the group was issued a m ining licence 
for the nyabigena nyabirama and gokona concessions in the nyamongo region north mara in tanzania the agreement requires the group 
to pay to the government of tanzania annual rents of us1500 per annum per square kilometer for as long as the group holds the mining 
licence the total commitment for 2010 based on mineral licences held as at 31 december 2009 is us017 million 
d purchase commitments 
at 31 december 2010 the group had purchase obligations for supplies and consumables of approximately us64 million 2009 us5 6 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 
2010 
 
as at 
31 december 
2009 
contracted capital expenditure  29323  29460 
total  29323  29460 
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 proceeds 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 
2010 
 
for the year ended 
31 december 
2009 
cost of sales  2100 –
other income  4535 –
total  6635 –
overview performance governance financial statements shareholder information
annual report and accounts 2010
145 notes to the consolidated financial statements continued 
 
32 related party balances and transactions 
the group had the following related party balances and transactions during the years ended 31 december 2010 and 31 december 2009 
related parties are those entities owned or controlled by barrick gold corporation 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 
2010 
 
for the year ended 
31 december 
2009 
bibc – gold sale doré  185233  540617 
provision of goods and services  2443  497 
purchase of goods and services  8864 9132
special dividend payment  258680 – 
interim dividend payments  4852 – 
total  84720 531982 
provision and purchase of goods and services tofrom related parties are on normal co mmercial terms and conditions provision o f services relates to 
cost incurred by the group and recharged to related parties purchase of goods and serv ices relates to cost incurred by related parties and recharged to 
the group services purchased relate mainly to insurance and so ftware licences goods purchased relate mainly to consumables an d capital equipment 
b balances due from related parties 
 
 
as at 
31 december 
2010 
 
as at 
31 december 
2009 
bibc gold sales receivable  –  26218 
barrick platinum pty ltd  1696  5474 
pangea fenn gibb  –  4999 
other  435  827 
total  2131  37518 
receivables from barrick platinum are for services rendered the gold receivable related to sales of doré to bibc and were payable within one 
week after sale to bibc the receivables are unsecured in nature and bear no interest  there are no provisions held against rec eivables from barrick  
c balances due to related parties 
in thousands of united states dollars 
 
as at 
31 december 
2010 
 
as at 
31 december 
2009 
bibc   54  – 
barrick gold corporation  2608  12465 
barrick gold australia ltd  317  – 
other  261  4857 
total  3240  17322 
the payables to barrick arise mainly from purchase transactions noted above and are due 30 days after the date of purchase the payables are 
unsecured and bear no interest for the year ending 31 december 2009 corporate overheads including but not limited to technical service 
costs have not been allocated to the group following the ipo these charges were incurred by the group  
d balances due to related parties funding in nature 
in thousands of united states dollars 
 
as at 
31 december 
2010 
 
as at 
31 december 
2009 
barrick international bank incorporation “bibc”  –  1383415 
total  –  1383415 
related party borrowings related to amounts due to bibc and pdg bank which were repaid during the current financial year in the form 
of cash of us575 million and conversion to contributed surplus of us1039 million these amounts were interestfree and had no fixed 
repayment terms  
146
wwwafricanbarrickgoldcom notes to the consolidated financial statements continued 
 
32 related party balances and transactions 
the group had the following related party balances and transactions during the years ended 31 december 2010 and 31 december 2009 
related parties are those entities owned or controlled by barrick gold corporation 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 
2010 
 
for the year ended 
31 december 
2009 
bibc – gold sale doré  185233  540617 
provision of goods and services  2443  497 
purchase of goods and services  8864 9132
special dividend payment  258680 – 
interim dividend payments  4852 – 
total  84720 531982 
provision and purchase of goods and services tofrom related parties are on normal co mmercial terms and conditions provision o f services relates to 
cost incurred by the group and recharged to related parties purchase of goods and serv ices relates to cost incurred by related parties and recharged to 
the group services purchased relate mainly to insurance and so ftware licences goods purchased relate mainly to consumables an d capital equipment 
b balances due from related parties 
 
 
as at 
31 december 
2010 
 
as at 
31 december 
2009 
bibc gold sales receivable  –  26218 
barrick platinum pty ltd  1696  5474 
pangea fenn gibb  –  4999 
other  435  827 
total  2131  37518 
receivables from barrick platinum are for services rendered the gold receivable related to sales of doré to bibc and were payable within one 
week after sale to bibc the receivables are unsecured in nature and bear no interest  there are no provisions held against rec eivables from barrick  
c balances due to related parties 
in thousands of united states dollars 
 
as at 
31 december 
2010 
 
as at 
31 december 
2009 
bibc   54  – 
barrick gold corporation  2608  12465 
barrick gold australia ltd  317  – 
other  261  4857 
total  3240  17322 
the payables to barrick arise mainly from purchase transactions noted above and are due 30 days after the date of purchase the payables are 
unsecured and bear no interest for the year ending 31 december 2009 corporate overheads including but not limited to technical service 
costs have not been allocated to the group following the ipo these charges were incurred by the group  
d balances due to related parties funding in nature 
in thousands of united states dollars 
 
as at 
31 december 
2010 
 
as at 
31 december 
2009 
barrick international bank incorporation “bibc”  –  1383415 
total  –  1383415 
related party borrowings related to amounts due to bibc and pdg bank which were repaid during the current financial year in the form 
of cash of us575 million and conversion to contributed surplus of us1039 million these amounts were interestfree and had no fixed 
repayment terms  
 
 
e remuneration of key management personnel 
key management personnel include the members of the board of directors and the senior leadership team who receive remuneration as the 
group was only formed during february 2010 the board of directors was not in place for the entire period and no remuneration was paid to 
key personnel by the group during the 2009 financial year compensation for key management personnel including directors was as follows 
in thousands of united states dollars  
for the year ended 
31 december 
2010 
salaries and shortterm employee benefits  6001 
postemployment benefits  486 
sharebased payments  728 
total  7215 
33 mineral licences 
the group holds exploration concessions in the united republic of tanzania these concessions are held in the form of either reconnaissance 
licences or prospecting licences issued by the ministry of energy and minerals and are held either directly by the group or indirectly in 
exploration joint venture agreements with third parties the concessions held by the group as at 31 december 2010 are summarised in the 
following table 
mineral licence concessions 
 
number of 
concessions 
 approximate 
km2 
held by north mara gold mine limited  23 12908
held by pangea minerals limited  76 192011
held by barrick africa exploration limited   95 123150
held by vulcan resources tanzania  12 20758
held by subsahara resources tz limited  13 12116
held by nyanzaga exploration limited  1 829
prospecting licences – indirectly held
1
  83 99402
total  303 461174
1 via exploration joint venture with third parties 
34 post balance sheet events 
dividend 
a dividend in respect of the year ended 31 december 2010 of us37 cents per share amounting to a final dividend of us53 cents per share for 
2010 is to be proposed at the annual general meeting on 21 april 2011 these financial statements do not reflect this dividend payable 
overview performance governance financial statements shareholder information
annual report and accounts 2010
147 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 2010 
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 86 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 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 
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 2010 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 matter 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 2010  
 
jason burkitt senior statutory auditor 
for and on behalf of pricewaterhousecoopers llp 
chartered accountants and statutory auditors 
london 
10 march 2011 
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 
 
148
wwwafricanbarrickgoldcom 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 2010 
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 86 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 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 
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 2010 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 matter 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 2010  
 
jason burkitt senior statutory auditor 
for and on behalf of pricewaterhousecoopers llp 
chartered accountants and statutory auditors 
london 
10 march 2011 
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 
 
parent company income statement 
 
 
in thousands of united states dollars  notes  
for the 
period since 
incorporation 
ended 
31 december 
2010 
corporate administration  3 5888
other charges   2294
finance income   4 338 
loss before taxation   7844
income tax  5 – 
net loss for the period   7844
 
 
 
parent company statement of comprehensive income 
in thousands of united states dollars  
for the 
period since 
incorporation 
ended 
31 december 
2010 
loss for the period  7844
other comprehensive income for the period  –
total comprehensive loss for the period  7844
the accompanying notes on pages 153 to 165 are an integral part of these financial statements 
 
overview performance governance financial statements shareholder information
annual report and accounts 2010
149 parent company balance sheet 
 
in thousands of united states dollars  notes  
as at 
31 december 
2010 
assets  
noncurrent assets  
property plant and equipment   7 425 
investment in subsidiaries  8 1324568 
noncurrent receivables  18 772680 
    2097673 
current assets  
other receivables   9 1024 
cash and cash equivalents  10 187491 
   188515 
total assets   2286188 
 
equity and liabilities  
share capital and share premium  11 929199 
other reserves  1355008 
total equity   2284207 
  
noncurrent liabilities  
other noncurrent liabilities  327 
    327 
 
current liabilities  
other current liabilities   14 1654 
    1654 
total liabilities   1981 
 
total equity and liabilities   2286188
the accompanying notes on pages 153 to 165 are an integral part of these financial statements  
the financial statements on pages 149 to 165 were approved by the board of directors of african barrick gold plc on 10 march 2011 and 
signed on their behalf by 
greg hawkins 
chief executive officer 
 
150
wwwafricanbarrickgoldcom parent company balance sheet 
 
in thousands of united states dollars  notes  
as at 
31 december 
2010 
assets  
noncurrent assets  
property plant and equipment   7 425 
investment in subsidiaries  8 1324568 
noncurrent receivables  18 772680 
    2097673 
current assets  
other receivables   9 1024 
cash and cash equivalents  10 187491 
   188515 
total assets   2286188 
 
equity and liabilities  
share capital and share premium  11 929199 
other reserves  1355008 
total equity   2284207 
  
noncurrent liabilities  
other noncurrent liabilities  327 
    327 
 
current liabilities  
other current liabilities   14 1654 
    1654 
total liabilities   1981 
 
total equity and liabilities   2286188
the accompanying notes on pages 153 to 165 are an integral part of these financial statements  
the financial statements on pages 149 to 165 were approved by the board of directors of african barrick gold plc on 10 march 2011 and 
signed on their behalf by 
greg hawkins 
chief executive officer 
 
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 –  – –
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  13  – – – –  6562 6562
stock options     – – – 640   – 640 
balance at 31 december 2010    62097 867102 1368774 640   14406 2284207
the accompanying notes on pages 153 to 165 are an integral part of these financial statements  
overview performance governance financial statements shareholder information
annual report and accounts 2010
151 parent company cash flow statement 
 
in thousands of united states dollars  notes  
for the 
period since 
incorporation 
ended 
31 december 
2010 
cash flows from operating activities   
net loss for the period   7844
adjustments for   
depreciation and amortisation   41 
finance items   338
working capital adjustments   6 957 
other   6 694 
cash used by operations before interest and tax   6490
finance income    338 
net cash used by operating activities    6152
 
cash flows from investing activities   
purchase of property plant and equipment    466
net cash used in investing activities    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
interim dividend   6562
net cash provided by financing activities    194174 
   
net increase in cash and equivalents    187556 
net foreign exchange difference   65
cash and cash equivalents at 12 january   – 
cash and cash equivalents at 31 december    187491
the accompanying notes on pages 153 to 165 are an integral part of these financial statements  
152
wwwafricanbarrickgoldcom parent company cash flow statement 
 
in thousands of united states dollars  notes  
for the 
period since 
incorporation 
ended 
31 december 
2010 
cash flows from operating activities   
net loss for the period   7844
adjustments for   
depreciation and amortisation   41 
finance items   338
working capital adjustments   6 957 
other   6 694 
cash used by operations before interest and tax   6490
finance income    338 
net cash used by operating activities    6152
 
cash flows from investing activities   
purchase of property plant and equipment    466
net cash used in investing activities    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
interim dividend   6562
net cash provided by financing activities    194174 
   
net increase in cash and equivalents    187556 
net foreign exchange difference   65
cash and cash equivalents at 12 january   – 
cash and cash equivalents at 31 december    187491
the accompanying notes on pages 153 to 165 are an integral part of these financial statements  
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 12 march 
2010 under the companies act 2006 it is registered in england and wales with registered number 7123187 
on 24 march 2010 the company’s shares were admitted to the official list of the united kingdom listing authority “ukla” and to trading 
on the main market of the london stock exchange hereafter referred to as the initial public offering “ipo” the address of its registered 
office is 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 
in preparation for the ipo bgc conducted a reorganisation which was completed on 22 february 2010 whereby the companies comprising 
the african regional business unit of bgc were reorganised under the company the “preipo reorganisation” as such prior to 
22 february 2010 the company did not control all of the entities it acquired pursuant to the preipo reorganisation 
the financial statements for the year ended 31 december 2010 were approved for issue by the board of directors of the company on 
10 march 2011  
the primary activity of the company is as holding company 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 as the company was only incorporated on 12 january 
2010 no comparative information exists  
the companys forecasts and projections taking account of reasonably possible changes in trading performance show that the company 
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 
the following new standards and amendments to standards are applicable and were adopted by the company for the first time for the financial 
year beginning 12 january 2010 
• ias 36 amendment “impairment of assets” effective 1 january 2010 the amendment clarifies that the largest cashgenerating unit 
or group of units to which goodwill should be allocated for the purposes of impairment testing is an operating segment as defined by 
paragraph 5 of ifrs 8 “operating segments” that is before the aggregation of segments with similar economic characteristics ias 36 
amendment has had no impact on the current period as no impairment was identified when testing goodwill impairment at an operating 
segment level 
• ifrs 2 amendments “group cashsettled sharebased payment transactions” effective 1 january 2010 in addition to incorporating ifric 
8 “scope of ifrs 2” and ifric 11 “ifrs 2 group and treasury share transactions” the amendments expand on the guidance in ifric 11 
to address the classification of group arrangements that were not covered by that interpretation the application of the standard did not have 
a material effect on the group 
overview performance governance financial statements shareholder information
annual report and accounts 2010
153 notes to the company financial statements continued 
 
2 significant accounting policies continued  
c new and amended standards and interpretations mandatory for the first time for the financial year beginning 
12 january 2010 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 12 january 2010 or later periods but are currently not relevant to the company 
• ifric 17 “distribution of noncash assets to owners” effective on or after 1 july 2009 the interpretation was published in november 2008 
this interpretation provides guidance on accounting for arrangements whereby an entity distributes noncash assets to shareholders either as 
a distribution of reserves or as dividends ifrs 5 has also been amended to require that assets are classified as held for distribution only when 
they are amended to require that assets are classified as held for distribution only when they are available for distribution in their present 
condition and the distribution is highly probable 
• ifric 18 “transfers of assets from customers” effective for transfer of assets received on or after 1 july 2009 this interpretation clarifies the 
requirements of ifrss for agreements in which an entity receives from a customer an item of property plant and equipment that the entity 
must then use either to connect the customer to a network or to provide the customer with ongoing access to a supply of goods or services 
such as a supply of electricity gas or water in some cases the entity receives cash from a customer that must be used only to acquire or 
construct the item of property plant and equipment in order to connect the customer to a network or provide the customer with ongoing 
access to a supply of goods or services or to do both 
• ifric 9 “reassessment of embedded derivatives” and ias 39 “financial instruments recognition and measurement” effective 1 july 2009 
this amendment to ifric 9 requires an entity to assess whether an embedded derivative should be separated from a host contract when the 
entity reclassifies a hybrid financial asset out of the “fair value through profit or loss” category this assessment is to be made based on 
circumstances that existed on the later of the date the entity first became a party to the contract and the date of any contract amendments 
that significantly change the cash flows of the contract if the entity is unable to make this assessment the hybrid instrument must remain 
classified as at fair value through profit or loss in its entirety 
• ifric 16 “hedges of a net investment in a foreign operation” effective 1 july 2009 this amendment states that in a hedge of a net 
investment in a foreign operation qualifying hedging instruments may be held by any entity or entities within the group including the 
foreign operation itself as long as the designation documentation and effectiveness requirements of ias 39 that relate to a net investment 
hedge are satisfied in particular the company should clearly document its hedging strategy because of the possibility of different 
designations at different levels of the company  
• ias 38 amendment “intangible assets” effective 1 january 2010 the amendment clarifies guidance in measuring the fair value of an 
intangible asset acquired in a business combination and permits the grouping of intangible assets as a single asset if each asset has a similar 
useful economic life 
• ias 1 amendment “presentation of financial statements” the amendment clarifies that the potential settlement of a liability by the issue 
of equity is not relevant to its classification as current or noncurrent by amending the definition of current liability the amendment permits 
a liability to be classified as noncurrent provided that the entity has an unconditional right to defer settlement by transfer of cash or other 
assets for at least 12 months after the accounting period notwithstanding the fact that the entity could be required by the counterparty to 
settle in shares at any time 
• ifrs 3 revised “business combinations” and consequential amendments to ias 27 revised “consolidated and separate financial 
statements” ias 28 “investments in associates” and ias 31 “interest in joint ventures” are effective prospectively to business combinations 
for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after 1 july 2009 
the revised standard continues to apply the acquisition method to business combinations but with some significant changes compared 
with ifrs 3 for example all payments to purchase a business are recorded at fair value at the acquisition date with contingent payments 
classified as debt subsequently remeasured through the income statement there is a choice on an acquisitionby acquisition basis to 
measure the noncontrolling interest in the acquiree either at fair value or at the noncontrolling interest in the acquiree either at fair value 
or at the noncontrolling interest’s proportionate share of the acquiree’s net assets all acquisitionrelated costs are expensed 
 
154
wwwafricanbarrickgoldcom notes to the company financial statements continued 
 
2 significant accounting policies continued  
c new and amended standards and interpretations mandatory for the first time for the financial year beginning 
12 january 2010 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 12 january 2010 or later periods but are currently not relevant to the company 
• ifric 17 “distribution of noncash assets to owners” effective on or after 1 july 2009 the interpretation was published in november 2008 
this interpretation provides guidance on accounting for arrangements whereby an entity distributes noncash assets to shareholders either as 
a distribution of reserves or as dividends ifrs 5 has also been amended to require that assets are classified as held for distribution only when 
they are amended to require that assets are classified as held for distribution only when they are available for distribution in their present 
condition and the distribution is highly probable 
• ifric 18 “transfers of assets from customers” effective for transfer of assets received on or after 1 july 2009 this interpretation clarifies the 
requirements of ifrss for agreements in which an entity receives from a customer an item of property plant and equipment that the entity 
must then use either to connect the customer to a network or to provide the customer with ongoing access to a supply of goods or services 
such as a supply of electricity gas or water in some cases the entity receives cash from a customer that must be used only to acquire or 
construct the item of property plant and equipment in order to connect the customer to a network or provide the customer with ongoing 
access to a supply of goods or services or to do both 
• ifric 9 “reassessment of embedded derivatives” and ias 39 “financial instruments recognition and measurement” effective 1 july 2009 
this amendment to ifric 9 requires an entity to assess whether an embedded derivative should be separated from a host contract when the 
entity reclassifies a hybrid financial asset out of the “fair value through profit or loss” category this assessment is to be made based on 
circumstances that existed on the later of the date the entity first became a party to the contract and the date of any contract amendments 
that significantly change the cash flows of the contract if the entity is unable to make this assessment the hybrid instrument must remain 
classified as at fair value through profit or loss in its entirety 
• ifric 16 “hedges of a net investment in a foreign operation” effective 1 july 2009 this amendment states that in a hedge of a net 
investment in a foreign operation qualifying hedging instruments may be held by any entity or entities within the group including the 
foreign operation itself as long as the designation documentation and effectiveness requirements of ias 39 that relate to a net investment 
hedge are satisfied in particular the company should clearly document its hedging strategy because of the possibility of different 
designations at different levels of the company  
• ias 38 amendment “intangible assets” effective 1 january 2010 the amendment clarifies guidance in measuring the fair value of an 
intangible asset acquired in a business combination and permits the grouping of intangible assets as a single asset if each asset has a similar 
useful economic life 
• ias 1 amendment “presentation of financial statements” the amendment clarifies that the potential settlement of a liability by the issue 
of equity is not relevant to its classification as current or noncurrent by amending the definition of current liability the amendment permits 
a liability to be classified as noncurrent provided that the entity has an unconditional right to defer settlement by transfer of cash or other 
assets for at least 12 months after the accounting period notwithstanding the fact that the entity could be required by the counterparty to 
settle in shares at any time 
• ifrs 3 revised “business combinations” and consequential amendments to ias 27 revised “consolidated and separate financial 
statements” ias 28 “investments in associates” and ias 31 “interest in joint ventures” are effective prospectively to business combinations 
for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after 1 july 2009 
the revised standard continues to apply the acquisition method to business combinations but with some significant changes compared 
with ifrs 3 for example all payments to purchase a business are recorded at fair value at the acquisition date with contingent payments 
classified as debt subsequently remeasured through the income statement there is a choice on an acquisitionby acquisition basis to 
measure the noncontrolling interest in the acquiree either at fair value or at the noncontrolling interest in the acquiree either at fair value 
or at the noncontrolling interest’s proportionate share of the acquiree’s net assets all acquisitionrelated costs are expensed 
 
 
 
 
ias 27 revised requires the effects of all transactions with noncontrolling interest to be recorded in equity if there is no change in control 
and these transactions will no longer result in goodwill or gains and losses the standard also specifies the accounting when control is lost 
any remaining interest in the entity is remeasured to fair value and a gain or loss is recognised in profit or loss  
• ifrs 5 amendment “noncurrent assets held for sale and discontinued operations” the amendment clarifies that ifrs 5 specifies the 
disclosures required in respect of noncurrent assets or disposal groups classified as held for sale or discontinued operations it also clarifies 
that the general requirements of ias 1 still apply in particular paragraph 15 to achieve a fair presentation and paragraph 125 sources of 
estimation uncertainty of ias 1 
d new standards amendments and interpretations issued but not effective for the financial year beginning 12 january 
2010 and not early adopted 
the company’s assessment of the impact of these new standards and interpretations is set out below 
• ifrs 9 “financial instruments” issued in november 2009 this standard is the first step in the process to replace ias 39 “financial 
instruments recognition and measurement” ifrs 9 introduces new requirements for classifying and measuring financial assets the 
standard is not applicable until 1 january 2013 but is available for early adoption however the standard has not yet been endorsed by the 
eu the company 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 company’s operating results or financial position 
• ias 24 revised “related party disclosures” issued in november 2009 it supersedes ias 24 “related party disclosures” issued in 2003 ias 
24 revised is mandatory for periods beginning on or after 1 january 2011 earlier application in whole or in part is permitted however the 
standard has not yet been endorsed by the eu the revised standard clarifies and simplifies the definition of a related party and removes the 
requirement for governmentrelated entities to disclose details of all transactions with the government and other governmentrelated entities 
the company will apply the revised standard from 1 january 2011 it is not expected to have any impact on the company or the parent 
entity’s financial statements 
• ias 32 amendment “classification of rights issues” issued in october 2009 the amendment applies to annual periods beginning on or 
after 1 february 2010 earlier application is permitted the amendment addresses the accounting for rights issues that are denominated in a 
currency other than the functional currency of the issuer provided certain conditions are met such rights issues are now classified as equity 
regardless of the currency in which the exercise price is denominated previously these issues had to be accounted for as derivative liabilities 
the amendment applies retrospectively in accordance with ias 8 “accounting policies changes in accounting estimates and errors” the 
company has not issued any rights issues 
• ifric 19 “extinguishing financial liabilities with equity instruments” effective 1 july 2010 the interpretation clarifies the accounting by an 
entity when the terms of a financial liability are renegotiated and result in the entity issuing equity instruments to a creditor of the entity to 
extinguish all or part of the financial liability debt for equity swap it requires a gain or loss to be recognised in profit or loss which is 
measured as the difference between the carrying amount of the financial liability and the fair value of the equity instruments issued if the fair 
value of the equity instruments issued cannot be reliably measured the equity instruments should be measured to reflect the fair value of the 
financial liability extinguished the company will apply the interpretation from 1 january 2011 it is not expected to have any impact on the 
company or the parent entity’s financial statements 
• ifric 14 amendment “prepayments of a minimum funding requirement” the amendments correct an unintended consequence of ifric 14 
“ias 19 the limit on a defined benefit asset minimum funding requirements and their interaction” without the amendments entities are 
not permitted to recognise as an asset some voluntary prepayments for minimum funding contributions this was not intended when ifric 14 
was issued and the amendments correct this the amendments are effective for annual periods beginning 1 january 2011 earlier application 
is permitted the amendments should be applied retrospectively to the earliest comparative period presented it is not expected to have any 
impact on the company or the parent entity’s financial statements  
overview performance governance financial statements shareholder information
annual report and accounts 2010
155 notes to the company financial statements continued 
 
2 significant accounting policies continued  
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 and 
• 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 
f foreign currency translation 
the company’s transactions are denominated in a number of different currencies primarily us dollars and uk pound sterling the company 
has liabilities that are primarily denominated in us dollars the us dollar is the company’s functional currency as well as the 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 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 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  
2010  
average 
year ended 
31 december 
2010  
uk pound us  gbp  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 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 rights 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 
at each reporting date an assessment is made to determine whether there are any indicators of impairment where an indicator of impairment 
exists a formal estimate of the recoverable amount of the investment in subsidiary is made which is considered to be the higher of the fair value 
less costs to sell and the value in use fair value is determined as the 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 a mount 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 the recoverable 
amount is made an impairment loss is reversed to the income statement to the extent that the increased carrying value of the investment 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 
156
wwwafricanbarrickgoldcom notes to the company financial statements continued 
 
2 significant accounting policies continued  
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 and 
• 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 
f foreign currency translation 
the company’s transactions are denominated in a number of different currencies primarily us dollars and uk pound sterling the company 
has liabilities that are primarily denominated in us dollars the us dollar is the company’s functional currency as well as the 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 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 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  
2010  
average 
year ended 
31 december 
2010  
uk pound us  gbp  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 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 rights 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 
at each reporting date an assessment is made to determine whether there are any indicators of impairment where an indicator of impairment 
exists a formal estimate of the recoverable amount of the investment in subsidiary is made which is considered to be the higher of the fair value 
less costs to sell and the value in use fair value is determined as the 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 a mount 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 the recoverable 
amount is made an impairment loss is reversed to the income statement to the extent that the increased carrying value of the investment 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 statement cash and cash equivalents consist of cash and cash equivalents 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 are 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 when there is objective evidence that the company will not be able 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 estimated 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 enacted 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 periods 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 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 year end 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 
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 
overview performance governance financial statements shareholder information
annual report and accounts 2010
157 notes to the company financial statements continued 
 
3 corporate administration 
included in corporate administration costs are the following 
in thousands of united states dollars  
for the 
period since 
incorporation 
ended 
31 december 
2010 
salaries  2257 
other employee benefits  256 
sharebased payments  544 
directors’ fee  455 
professional and consultancy fees  913 
foreign exchange loss  85 
travel and administration  699 
depreciation  41 
other  638 
   5888 
details of director’s remuneration can be found in the remuneration report on pages 87 to 95 details of the auditors’ remuneration can be 
found in note 9 of the group financial statements 
average number of employees 
  
for the period 
since 
incorporation 
ended 
31 december 
2010 
administration  5 
total average headcount  5 
4  finance income 
 in thousands of united states dollars  
for the 
period since 
incorporation 
ended 
31 december 
2010 
interest on time deposits  338 
total  338 
158
wwwafricanbarrickgoldcom notes to the company financial statements continued 
 
3 corporate administration 
included in corporate administration costs are the following 
in thousands of united states dollars  
for the 
period since 
incorporation 
ended 
31 december 
2010 
salaries  2257 
other employee benefits  256 
sharebased payments  544 
directors’ fee  455 
professional and consultancy fees  913 
foreign exchange loss  85 
travel and administration  699 
depreciation  41 
other  638 
   5888 
details of director’s remuneration can be found in the remuneration report on pages 87 to 95 details of the auditors’ remuneration can be 
found in note 9 of the group financial statements 
average number of employees 
  
for the period 
since 
incorporation 
ended 
31 december 
2010 
administration  5 
total average headcount  5 
4  finance income 
 in thousands of united states dollars  
for the 
period since 
incorporation 
ended 
31 december 
2010 
interest on time deposits  338 
total  338 
 
 
5 tax expense 
in thousands of united states dollars  
for the 
period since 
incorporation 
ended 
31 december 
2010 
corporation taxes  – 
total   – 
the statutory income tax rate in the united kingdom is 28 for 2010 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 
period since 
incorporation 
ended 
31 december 
2010 
loss before tax  7844
tax calculated at statutory tax rates   2196 
tax effects of   
expenses not deductible for tax purposes  561 
tax losses for which no deferred income tax asset was recognised  1635
tax charge  0
deferred tax assets have not been recognised in respect of the tax losses amounting to us61 million as at 31 december 2010 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 
period since 
incorporation 
ended 
31 december 
2010 
adjustments for noncash income statement items   
foreign exchange losses  150 
other expenses  544 
total  694 
adjustments for working capital items  
in thousands of united states dollars  
for the 
period ended 
31 december 
2010 
other receivables  1024
other payables  1654 
other liabilities  327 
total  957 
overview performance governance financial statements shareholder information
annual report and accounts 2010
159 notes to the company financial statements continued 
 
7  property plant and equipment 
property plant and equipment is composed of us466000 of computer equipment and office furniture all acquired during the current year 
the depreciation charge for the year is us41000 
8 investment in subsidiaries 
in thousands of united states dollars  
for the 
period since 
incorporation 
ended 
31 december 
2010 
opening balance  – 
additions  1324568 
closing balance  1324568 
the subsidiaries in which investments are held as at 31 december 2010 are as follows 
company  principal activity  country of incorporation  
equity interest
2010 
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 
2010
indirect tax receivables  295 
advance payments  117 
other receivables  11 
due from related parties note 18  601 
total  1024 
at 31 december 2010 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 
2010
cash at bank and on hand  175637 
money market funds  11854 
total  187491 
shortterm deposits are made for varying periods of between one day and three months depending on the immediate cash requirements of the 
company and earn interest at the respective shortterm deposit rates 
160
wwwafricanbarrickgoldcom notes to the company financial statements continued 
 
7  property plant and equipment 
property plant and equipment is composed of us466000 of computer equipment and office furniture all acquired during the current year 
the depreciation charge for the year is us41000 
8 investment in subsidiaries 
in thousands of united states dollars  
for the 
period since 
incorporation 
ended 
31 december 
2010 
opening balance  – 
additions  1324568 
closing balance  1324568 
the subsidiaries in which investments are held as at 31 december 2010 are as follows 
company  principal activity  country of incorporation  
equity interest
2010 
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 
2010
indirect tax receivables  295 
advance payments  117 
other receivables  11 
due from related parties note 18  601 
total  1024 
at 31 december 2010 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 
2010
cash at bank and on hand  175637 
money market funds  11854 
total  187491 
shortterm deposits are made for varying periods of between one day and three months depending on the immediate cash requirements 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 
incorporation of company and preipo reorganisation  
the company was incorporated and registered in england and wales on 12 january 2010 as a private limited company with a share capital of 
one ordinary share of £1  
on 19 february 2010 the company entered into a share exchange agreement pursuant to which it acquired the entire issued share capital of 
buk holdco ltd from members of bgc in return for issuing 943464 ordinary shares of £1 each at a premium of £999 per share  
on 22 february 2010 the company entered into a share exchange agreement pursuant to which it acquired the entire issued share capital of 
1816962 ontario inc from bgc in return for issuing 375000 ordinary shares of £1 each at a premium of £999 per share  
the company subsequently entered into a reduction of capital eliminating share premium of us1989138 to create distributable reserves 
and restructured its share capital so as to reduce the nominal value of each of its ordinary shares to 10 pence following the share capital 
restructuring the company made a bonus issue of shares to its then existing shareholders in preparation for the ipo resulting in a total of 
303246950 ordinary shares being in issue prior to the ipo  
reregistration of the company as a public company  
on 12 march 2010 the company reregistered as a public limited company  
issuance of shares on ipo  
on 24 march 2010 the company successfully completed its ipo a total number of 101082317 shares with a par value of 10 pence each were 
issued at a price of 575 pence per share for a total of £581223322 us886365567 net of underwriter fees on 15 april 2010 the company 
issued a further 5756232 ordinary shares at a price of 575 pence per share for a total of £33098334 us52275508 pursuant to the exercise 
of the overallotment option granted in connection with the ipo total costs related to the issuance of new shares taken against share premium 
amounted to us539 million 
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 middlemarket quotation 
of such shares as derived from the london stock exchange daily 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 none of the options granted was exercisable at 31 december 2010 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
2010  
options 
2010 
at 12 january  – –
granted  532 676075
at 31 december  532 676075
the weighted average fair value of the options granted during the current year using the lattice valuation approach was determined as 171 
pence per option the significant inputs into the model were weighted average share and exercise price of 532 pence at the grant date volatility 
range of 32 to 50 dividend yield of 07 an expected option life of seven years annual riskfree interest rate of 268 and suboptimal 
exercise multiple of 15x 
overview performance governance financial statements shareholder information
annual report and accounts 2010
161 notes to the company financial statements continued 
 
 
13 dividends paid 
an interim dividend of us66 million us16 cents per share was paid during 2010 refer to note 19 for details of the final dividend declared 
subsequent to year end 
14 other current payables 
in thousands of united states dollars  
as at 
31 december 
2010
payables  576 
payables to related parties note 18  1078 
total  1654 
15 financial assets and liabilities 
a financial assets 
in thousands of united states dollars  
carrying value
2010  
fair value
2010 
cash and cash equivalents  187491 187491 
other receivables  729 1024 
noncurrent receivables
1
  772680 772680 
total financial assets  960900 961195 
less current financial assets    
cash and cash equivalents  187491 187491
other receivables  729 1024
total noncurrent portion of receivables  772680 772680 
1 related party loans are interestfree and have no fixed repayment terms  
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 african barrick gold plc and its whollyowned subsidiary barbco one ltd 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 the term of the 
facility is 24 months and when drawn the spread over libor will be 350 basis points the shares of all significant subsidiaries have been pledged as 
security for the loan at 31 december 2010 none of the funds were drawn under the facility while a commitment fee of 14 was payable 
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 above 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 framework  
the company’s risk management policies are established to identify and analyse the risks faced by the company 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 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 
162
wwwafricanbarrickgoldcom notes to the company financial statements continued 
 
 
13 dividends paid 
an interim dividend of us66 million us16 cents per share was paid during 2010 refer to note 19 for details of the final dividend declared 
subsequent to year end 
14 other current payables 
in thousands of united states dollars  
as at 
31 december 
2010
payables  576 
payables to related parties note 18  1078 
total  1654 
15 financial assets and liabilities 
a financial assets 
in thousands of united states dollars  
carrying value
2010  
fair value
2010 
cash and cash equivalents  187491 187491 
other receivables  729 1024 
noncurrent receivables
1
  772680 772680 
total financial assets  960900 961195 
less current financial assets    
cash and cash equivalents  187491 187491
other receivables  729 1024
total noncurrent portion of receivables  772680 772680 
1 related party loans are interestfree and have no fixed repayment terms  
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 african barrick gold plc and its whollyowned subsidiary barbco one ltd 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 the term of the 
facility is 24 months and when drawn the spread over libor will be 350 basis points the shares of all significant subsidiaries have been pledged as 
security for the loan at 31 december 2010 none of the funds were drawn under the facility while a commitment fee of 14 was payable 
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 above 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 framework  
the company’s risk management policies are established to identify and analyse the risks faced by the company 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 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 instrument 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 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 cash 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 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 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 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 risks 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 
before submission to the board for ultimate approval where applicable  
at 31 december the gearing ratio was as follows 
in thousands of united states dollars 
 
as at 
31 december 
2010 
total borrowings including related party debt  –
less cash and cash equivalents  187491 
net debtsurplus 187491 
total equity 2284207
total capital  2096716 
gearing ratio  na 
overview performance governance financial statements shareholder information
annual report and accounts 2010
163 notes to the company financial statements continued 
 
17 operating lease arrangements 
in thousands of united states dollars  
for the 
period since 
incorporation 
ended 
31 december 
2010 
minimum lease payments under operating leases recognised in income for the period  131 
total  131 
at the balance sheet date the company had outstanding commitments for future minimum lease payments under noncancellable operating 
leases which fall due as follows 
in thousands of united states dollars  
as at
31 december 
2010 
within one year  262 
in the second to fifth years inclusive  787
after five years  1443 
total  2492 
18 related party balances and transactions 
the company had the following related party balances and transactions during the year ended 31 december 2010 related parties are 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 
period since 
incorporation 
ended 
31 december 
2010 
management fee  797 
provision of goods and services   460
purchase of goods and services  1734
special dividend payment  258680
interim dividend payment  4852
 264009
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 cost incurred by the company and recharged to related parties with no markup purchase of goods and services 
relates to cost incurred by related parties and recharged to the company with no markup services purchased relate mainly to insurance 
software licences and professional services 
total
164
wwwafricanbarrickgoldcom notes to the company financial statements continued 
 
17 operating lease arrangements 
in thousands of united states dollars  
for the 
period since 
incorporation 
ended 
31 december 
2010 
minimum lease payments under operating leases recognised in income for the period  131 
total  131 
at the balance sheet date the company had outstanding commitments for future minimum lease payments under noncancellable operating 
leases which fall due as follows 
in thousands of united states dollars  
as at
31 december 
2010 
within one year  262 
in the second to fifth years inclusive  787
after five years  1443 
total  2492 
18 related party balances and transactions 
the company had the following related party balances and transactions during the year ended 31 december 2010 related parties are 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 
period since 
incorporation 
ended 
31 december 
2010 
management fee  797 
provision of goods and services   460
purchase of goods and services  1734
special dividend payment  258680
interim dividend payment  4852
 264009
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 cost incurred by the company and recharged to related parties with no markup purchase of goods and services 
relates to cost incurred by related parties and recharged to the company with no markup services purchased relate mainly to insurance 
software licences and professional services 
total
 
 
b balances due from related parties 
in thousands of united states dollars  
as at 
31 december 
2010 
bulyanhulu gold mine ltd  92 
pangea minerals ltd  146 
north mara gold mine ltd  151 
barrick africa pty ltd  141 
barbco one ltd  67 
other  4 
total  601 
the receivables from related parties arise mainly from the provision of goods and services the receivables are unsecured in nature 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 
2010 
barrick gold corporation  1027 
barrick gold australia ltd  36 
barrick gold of north america inc  15 
total  1078 
the payables to barrick arise mainly from purchase transactions noted above and are due 30 days after the date of purchase 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 
2010 
buk  772680 
total  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 2010 of us37 cents per share amounting to a final dividend of us53 cents per share for 
2010 is to be proposed at the annual general meeting on 21 april 2011 these financial statements do not reflect this dividend payable 
overview performance governance financial statements shareholder information
annual report and accounts 2010
165 166
wwwafricanbarrickgoldcom
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 96
abg or the 
company
african barrick gold plc a company 
incorporated under the companies act 2006 and 
registered in england and w ales with registered 
number 7123187
abg group 
or the group
the company and its subsidiary undertakings
agm annual general meeting
amortisation and 
other cost per 
ounce sold 
has the meaning given to it on page 55
articles the articles of association of the company
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 54
barrick barrick gold corporation a company existing 
under the laws of the province of ontario canada
barrick group barrick and its subsidiary undertakings
board the board of directors of abg
byproduct a secondary metal or mineral product recovered 
in the milling process such as copper and silver
cash cost per 
ounce sold
has the meaning given to it on page 54
cash cost per 
tonne milled
has the meaning given to it on page 55
cim the canadian institute of mining metallurgy 
and petroleum
code of conduct abg’s code of business conduct and ethics
combined code the combined code on corporate governance 
dated june 2008 issued by the uk financial 
reporting council
companies act 
2006
the companies act 2006 of england 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
crest the computerised settlement system operated by 
euroclear uk  ireland limited 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 abg details of whom are set out 
on pages 70 and 71 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
driftandfill a method of underground mining used for flat
lying 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 annual report and accounts 2010
167
overview performance governance financial statements shareholder information
drilling  
reverse circulation
drilling method that uses a rotating cutting bit 
within a doublewalled drill pipe and produces 
rock chips rather than core air 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 55
executive directors the executive directors of the company greg 
hawkins and kevin jennings
exploration prospecting sampling mapping diamond drilling 
and other work involved in searching for ore
financial services 
authority or fsa
the financial services authority 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 financial services and markets act 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 grammes per metric tonne
ias international accounting standards
ifrs international financial reporting standards as 
adopted for use in the european union
ipo abg’s initial public offering on the main market 
of the london stock exchange
iso international standards organisation
koz thousand ounces
kpis key performance indicators
kt thousand metric tonnes
libor the british bankers’ association interest 
settlement rate for the relevant currency and 
period displayed on the appropriate page of the 
reuters’ screen
listing rules the rules relating to admission to the official list 
made in accordance with section 73a2 of fsma
london stock 
exchange or lse
london stock exchange plc
lti lost time injury meaning an occupational injury 
or illness that results in days away from work
ltifr loss time injury frequency rate ltifr is 
measured as the number of losttime claims per 
million hours worked
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
ngos nongovernmental organisations
ni 43101 canadian national instrument 43101
nonexecutive 
directors
the nonexecutive directors of the company 
being aaron regent james cross andre falzon 
stephen galbraith bobby godsell michael 
kenyon and derek pannell
official list the official list of the financial 
services authority
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 55
ordinary shares ordinary shares of £010 each in the capital of 
the company
ore rock generally containing metallic or non
metallic minerals which can be mined and 
processed at a profit
ore body a sufficiently large amount of ore that can be 
mined economically
oxide ore mineralised rock in which some of the original 
minerals have been oxidised oxidation tends 
to make the ore more amenable to cyanide 
solutions so that minute particles of gold will be 
readily dissolved
oz troy ounce 311035g
pgi pangea goldfields inc a canadian subsidiary 
of abg
preipo 
reorganisation
the reorganisation of the companies comprising 
the abg group into a separate corporate group 
and the acquisition by the company of the 
companies comprising the abg group 168
wwwafricanbarrickgoldcom
reclamation the process by which lands disturbed as a result of 
mining activity are modified to support beneficial 
land use reclamation 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 re
vegetation 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 abg
services 
agreement
the services agreement between barrick and abg 
senior leadership 
t eam or senior 
management
those members of the abg group’s management 
team details of whom are set out on page 11
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 ordinary shares
spot or spot price the purchase price of a commodity at the current 
price normally this is at a discount to the long
term 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 tanzanian electric supply company limited
tulawaka 
agreement
the joint venture agreement dated 15 september 
1998 as amended from time to time between 
pgi and mdn
tusker gold tusker gold limited a company incorporated 
under the laws of western australia
tzs tanzanian shilling
uk corporate 
governance code
the uk corporate governance code dated 
june 2010 issued by the uk financial 
reporting council 
united kingdom 
or uk
the united kingdom of great britain and 
northern ireland
united states or us the united states of america its territories and 
possessions any state of the united states of 
america and the district of columbia
vat valueadded tax
voluntary 
principles
means the voluntary principles on security and 
human rights
mining statistical information 
the following describes certain line items used in the abg group’s 
discussion of performance indicators
open pit material 
mined 
measures in tonnes the total amount of open pit 
ore and waste mined
underground ore 
tonnes hoisted 
measures in tonnes the total amount of 
underground ore mined and hoisted
t otal tonnes mined include open pit material plus underground ore 
tonnes hoisted
strip ratio measures the ratio of waste to ore for open pit 
material mined
ore milled measures in tonnes the amount of ore material 
processed through the mill
head grade measures the metal content of mined ore going 
into a mill for processing
milled recovery measures the proportion of valuable metal 
physically recovered in the processing of ore  
it is generally stated as a percentage of the  
metal recovered compared to the total metal 
originally present
t otal production 
costs
measures the total cost of production and is 
an aggregate of cash costs as well as production 
specific depreciation and amortisation
direct 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
glossary of terms continued electronic communications
at the forthcoming agm abg will seek shareholders’ consent to send 
or 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
under the provisions of the companies act 2006 abg is also 
required to ask you individually for your consent to supply documents 
electronically via abg’s website the relevant documentation relating 
to this consent is contained in the accompanying materials to this 
report entitled important notice – legislation change if you agree to 
abg sending or supplying documents and information via the website 
please submit your email address by visiting wwwinvestorcentrecouk
ecomms if you would prefer to receive documents and information in 
paper form rather than via the website you will need to let us know by 
completing the reverse of the form and returning it to computershare 
at the address detailed above
if we do not receive a response from you within 28 days of the date of 
notice of the agm then you will be taken to have agreed that abg may 
send or supply documents and information to you via its website abg 
will write to you with details of how you can access the information
further details regarding electronic communications can be found in 
the notice accompanying this report 
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 year end 31 december 2010
preliminary results for 2010 16 february 2011
annual general meeting 21 april 2011
quarterly results q1 2011 26 april 2011
payment date for 2010 final dividend 26 may 2011
half year report 2011 july 2011
quarterly results q3 2011 october 2011
quarterly results q4 2011 january 2012
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 st ives w esterham press ltd iso14001 fsc certified and 
carbonneutral®
consultancy design and production by black sun plc  
wwwblacksunplccom
shareholder enquiries
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 0870 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 82 and notes 13 and 34 to the financial 
statements shareholders may elect to receive payment of the 2010 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 
26 may 2011 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 26 may 2011
if you wish to receive the 2010 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 
6 may 2011 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 6 may 2011 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
about african barrick gold
go online to find more information
wwwafricanbarrickgoldcom
forwardlooking statements
this report includes ‘forwardlooking statements’ that express or imply expectations 
of future events or results forwardlooking statements are statements that are not 
historical facts these statements include without limitation financial projections 
and estimates and their underlying assumptions statements regarding plans 
objectives and expectations with respect to future production operations costs 
products and services and statements regarding future performance forward
looking statements are generally identified by the words ‘plans ’ ‘expects ’ ‘anticipates ’ 
‘believes ’ ‘intends ’ ‘estimates’ and other similar expressions 
all forwardlooking statements involve a number of risks uncertainties and other 
factors although abg’s management believes that the expectations reflected 
in such forwardlooking statements are reasonable investors are cautioned 
that forwardlooking information and statements are subject to various risks 
and uncertainties many of which are difficult to predict and generally beyond 
the control of abg that could cause actual results and developments to differ 
materially from those expressed in or implied or projected by the forwardlooking 
information and statements contained in this report factors that could cause or 
contribute to differences between the actual results performance and achievements 
of abg include but are not limited to political economic and business conditions 
industry trends competition commodity prices changes in regulation currency 
fluctuations including the us dollar south african rand and tanzanian shilling 
exchange rates abg’s ability to recover its reserves or develop new reserves 
including its ability to convert its resources into reserves and its mineral potential 
into resources or reserves and to timely and successfully process its mineral 
reserves risks of trespass theft and vandalism changes in its business strategy 
as well as risks and hazards associated with the business of mineral exploration 
development mining and production accordingly investors should not place 
reliance on forwardlooking statements contained in this report 
the forwardlooking statements in this report reflect information available at the 
time of preparing this report subject to the requirements of the disclosure and 
transparency rules and the listing rules or applicable law abg explicitly disclaims 
any obligation or undertaking publicly to release the result of any revisions to any 
forwardlooking statements in this report that may occur due to any change in 
abg’s expectations or reflect events or circumstances after the date of this report 
no statements made in this report regarding expectations of future profits are profit 
forecasts or estimates and no statements made in this report should be interpreted 
to mean that abg’s profits or earnings per share for any future period will 
necessarily match or exceed the historical published profits or earnings per share 
of abg or any other level
a quality african 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 north west 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 by
 – 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 w e are listed on the main 
market of the london stock exchange 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 in accordance with ifrs as adopted by the european 
union unless otherwise stated in this report annual report  accounts 2010
african barrick gold annual report  accounts 2010
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
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
morgan stanley  co international plc 
25 cabot square 
canary wharf 
london e14 4qa 
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:
 10
wwwafricanbarrickgoldcom
the last 12 months have marked the beginning of a vibrant new chapter 
for our business for me personally and for many colleagues several 
months of preparations culminated in march with the creation of 
abg and our ipo turning what was formerly a regional business unit 
of barrick into a significant independent business today we have a 
mandate to build on our already substantial asset base and strengthen 
our position within the gold mining industry
our key focus over this past year has been to ensure that our assets are 
positioned to generate longterm consistent operating performance 
this has been evident in the achievements at bulyanhulu and north 
mara the mine life extension at tulawaka and our determined 
approach to overcoming the challenges at buzwagi this marks the 
approach abg will continue to take with the business to ensure that it 
can be run consistently and sustainably to manage business risks and 
to apply all of our available resources to deal with any challenges this 
underpins our strategy of building growth on a solid operating base and 
adding value for our shareholders
throughout the year we have maintained our absolute commitment 
to operating in a responsible manner in close cooperation with 
our host communities and to ensuring that we further embed the 
culture of health and safety in all our operations and activities it is 
deeply regrettable that we suffered four fatalities at our bulyanhulu 
mine during the year we must learn from these incidents and from 
the thorough investigations we subsequently carried out to reduce 
the possibility of any recurrence all our financial and operating 
achievements must be judged in the context of our overriding 
corporate goals of ensuring that everyone goes home safe and healthy 
every day and of making a positive contribution to the areas where we 
operate we made substantial progress in these goals in 2010 during 
which our mines all achieved one million work hours without lost time 
injuries this is highly encouraging but we are conscious that we must 
continue to maintain our focus on achieving constant improvement
operating and financial performance
with the positive performances at bulyanhulu and north mara as 
well as the contribution from tulawaka we finished the year with 
production of 700934 ounces of gold at a cash cost of us569 per 
ounce with the positive evolution in gold prices over 2010 we are 
pleased to report a robust operating cash flow of us345 million 
and a yearend net cash position of us401 million we were also 
successful in growing our overall resource base by 35 to 269 million 
ounces of which 63 are classified as reserves however despite these 
achievements the issues faced at buzwagi meant that we did not meet 
all of our 2010 targets as such resolving the issues at buzwagi was a 
top priority for our management team during much of 2010 with the 
objective of ensuring that the mine entered 2011 in a position to deliver 
on expectations 
this work included a number of senior management changes including 
the chief operating officer and the general manager at buzwagi as 
well as significant additional investment in mining and process plant 
equipment security infrastructure personnel hiring and training 
following the discovery of systematic fuel thefts at the site and a 
significant tightening of security measures we are confident that these 
initiatives have helped to put the mine back on a more stable footing
chief executive officer’s statement
a strong financial performance
the last 12 months have marked the 
beginning of a new chapter for our 
business today we have a mandate to 
build on our substantial asset base and 
strengthen our position within the gold 
mining industry
greg hawkins
record operating cash flow
 
us345 
million annual report and accounts 2010
11
performance governance financial statements shareholder information overview
driving efficiency and growth
we implemented a range of plans in 2010 to help drive further 
efficiency and growth in our business and we will continue to invest 
in these in 2011 we aim to reach one million ounces of production per 
year by 2014 representing growth of 40 from 2010 levels we plan 
to achieve this while also delivering costbase efficiencies these are 
fundamental pillars of our focus on creating shareholder value and we 
aim to deliver them by
•	 optimising our existing assets
•	 expanding through organic growth and
•	 growing through acquisitions in africa 
optimising our existing assets 
in order to ensure that our assets remain world class and continue to 
operate at maximum efficiency levels we continue to undertake a range 
of capital investment measures and efficiency programmes against a 
backdrop of cost pressures in the industry we believe that these will 
help us to continue to operate at or below the midpoint of the industry 
cost curve
in 2010 these activities included a significant upgrade of the ventilation 
system at bulyanhulu fleet expansion at buzwagi and t ulawaka and de
bottlenecking at our north mara process plant to increase throughput 
we also significantly streamlined our procurement and supply chain 
functions as well as reorganising our office in dar es salaam in 2011 
we have a capital expenditure budget of us140 million for sustaining 
and development capital us24 million for expansion projects and 
us73 million for waste stripping key capital investment projects 
include the water treatment facility at north mara the addition of 
pebble ports and backup generating capacity at our buzwagi process 
plant additional underground mining equipment for tulawaka and 
continued security investment 
expanding through organic growth
the optimisation projects for all four of our mine sites remain on track 
to deliver substantial and sustainable additional production within 
four years and we have made encouraging progress on these projects 
throughout 2010 
at bulyanhulu we are continuing to dewater and rehabilitate access to 
the upper east zone the feasibility study for this project is progressing 
and we expect to finalise it during the first half of 2011 
at north mara we have been encouraged by the drill results below the 
gokona and nyabigena pits where we released an initial highgrade 
resource of 370000 gold ounces during the fourth quarter of 2010 we 
are targeting expanding this to one million ounces through an intensive 
drill programme in 2011 and the feasibility study for this project is also 
on track to be completed during the first half of 2011 
as announced in our preliminary results we are extending the life of 
our tulawaka mine for the full year 2011 and into the second quarter of 
2012 we will continue our exploration drilling at the site with the aim 
of further increasing the life of mine if successful we anticipate this will 
be based solely on the underground operation through the addition of a 
second portal we expect to provide an update on this later in the year 
senior leadership team
kevin jennings
cfo
marco zolezzi 
coo
deodatus mwanyika
vice president
corporate affairs
peter spora 
vice president exploration
kobus van vuuren
head of human resources
katrina white
general counsel  
company secretary
andrew w ray
head of corporate  
development and  
investor relations
pg details of the executives are on page 72 12
wwwafricanbarrickgoldcom
more recently we were pleased to announce an initial mineral resource 
at our golden ridge project the initial resource consists of an indicated 
mineral resource of 527000 gold ounces with an average grade of 294 
grams of gold per tonne and an inferred mineral resource of 152000 
gold ounces with an average grade of 252 grams of gold per tonne 
we intend to conduct additional exploration work throughout 2011 at 
golden ridge in furtherance of these encouraging results and aim to 
complete the feasibility study for the project by mid 2011
we also made encouraging progress at the greenfield nyanzaga project 
in 2010 following completion of our acquisition of tusker gold 
notably with the discovery of mineralisation closer to surface as well 
as increasing grades at depth we are stepping up the drill programme 
in 2011 with the aim of initiating a scoping study later in the year 
elsewhere the main focus of our generative exploration work was in the 
north mara area along the gokona corridor with some exciting initial 
results that we will follow up on in 2011
in recognition of the critical importance of organic growth to our long
term ambitions we are increasing our total exploration budget in 2011 
to us55 million including us26 million of capitalised expenditure 
this represents a 103 increase on 2010 
in addition to our organic growth plans acquisitions to expand our 
footprint more broadly in africa remain an important part of our 
strategy we have undeniable strengths in this area with substantial 
capital flexibility gained through our cash holdings and credit facility 
a management structure that will enable us to acquire and develop 
businesses in other parts of africa and the operational expertise to add 
value to the assets we acquire w e analysed a number of targets during 
2010 and we continue to actively seek out opportunities 
strengthening our management team
we have continued to strengthen our management team over the 
course of the year employing and promoting individuals with a track 
record of leadership and the skill set and experience to help take our 
business forward 
in september we announced the appointment of marco zolezzi as 
our chief operating officer marco has significant expertise in running 
mines and bringing complex largescale projects through to full 
ramp up he has been of significant value as we continue to focus on 
delivering consistent performance at our operating mines and driving 
forward our organic growth projects 
w e also appointed boyd timler as general manager at buzwagi boyd 
has 28 years of mining experience and has been instrumental in defining 
and implementing the action plan used to address issues at the mine 
in 2010 t owards the end of the year we also appointed basie maree as 
general manager of t ulawaka basie brings substantial experience of the 
industry including a number of years with anglo american and will 
lead t ulawaka forward into a new stage of its development
with these and other appointments i am confident that we now 
have a management team in place with the necessary experience 
energy and enthusiasm to further develop the business and deliver 
on abg’s potential 
chief executive officer’s statement continued
outlook
as i have already mentioned 2010 was a year of significant achievement 
while we also faced a number of challenges that impacted production 
and cash cost targets however with the measures we have taken with 
the investments made and with the additional expertise we have added 
to our team we ended 2010 strongly and enter 2011 with an impressive 
platform on which to build 
we are aiming to develop the business further through the following 
key objectives for 2011
•	 achieving attributable group production between 700000 and 
760000 ounces
•	 maintaining cash cost of between us590 and us650 per ounce 
sold and direct cash operating costs of between us545 and us605 
per ounce sold
•	 increasing group throughput and recoveries
•	 completing feasibility studies at our brownfield projects
•	 achieving growth in our overall resource base
•	 improving further on our safety record and
•	 continuing our focus on opportunities for strategic acquisitions 
to expand our footprint throughout africa
finally i would like to thank all of my colleagues for their commitment 
enthusiasm and hard work throughout what has been an extraordinary 
year in the development of our business i would also like to thank 
our board for their unwavering support their wise counsel and their 
commitment throughout the year 
greg hawkins chief executive officer