CONSOLIDATED STATEMENT OF CASH FLOWS
For the year ended 31 December 2010
2010 2009
US$000 US$000
CASH FLOWS FROM/(USED IN) OPERATING ACTIVITIES
Operating profit/(loss) for the year 450 (34,415)
Depreciation 19,858 7,385
Impairment of mineral properties - 21,914
(Decrease)/increase in trade and other payables (856) 3,545
Increase in other receivables (1,698) (7,132)
Decrease/(increase) in inventories 2,994 (3,108)
Increase in provisions 1,481 248
Share option charge 888 742
Exploration costs written off 7 621
Loss/(profit) on disposal of property, plant &
equipment 5 (7)
Exchange loss 315 1,391
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NET CASH FLOWS FROM/(USED IN) OPERATING
ACTIVITIES 23,444 (8,816)
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CASH FLOWS USED IN INVESTING ACTIVITIES
Interest receivable 46 23
Interest payable (1,775) (1,035)
Purchase of property, plant and equipment (6,317) (2,290)
Purchase of intangible assets (5,718) (2,920)
Proceeds from sale of property, plant and
equipment - 15
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NET CASH FLOWS USED IN INVESTING ACTIVITIES (13,764) (6,207)
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CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from the issue of share capital 15,564 13,931
Issue costs paid (6) (962)
Repayment of borrowings (6,000) -
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NET CASH FLOWS FROM FINANCING ACTIVITIES 9,558 12,969
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NET INCREASE/(DECREASE) IN CASH AND CASH
EQUIVALENTS 19,238 (2,054)
Cash and cash equivalents at start of period 2,273 4,416
Exchange losses on cash and cash equivalents (604) (89)
---------------------------
CASH AND CASH EQUIVALENTS AT END OF YEAR 20,907 2,273
---------------------------
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CASH AND CASH EQUIVALENTS COMPRISE
---------------------------
Cash at bank 20,907 2,273
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NOTES TO THE PRELIMINARY ANNOUNCEMENT
For the year ended 31 December 2010
1 Financial statements
The financial information set out above does not constitute the company's statutory accounts for the years
ended 31 December 2010 or 31 December 2009. Statutory accounts for 31 December 2009 have been delivered to the
Registrar of Companies and those for 31 December 2010 will be delivered in due course. The auditors have
reported on those accounts; their report was unqualified and did not contain statements under section 498 (2)
or (3) of the Companies Act 2006.
2 Basis of preparation and accounting policies
Whilst, the financial information included in this preliminary announcement has been presented in accordance
with International Financial Reporting Standards as adopted by the EU (IFRS), this announcement in itself does
not constitute full compliance with IFRS. Details of the accounting policies are those set out in the annual
report for the year ended 31 December 2009. These accounting policies have remained unchanged for the financial
year ended 31 December 2010 except for those new standards issued and adopted in the year.
3 Dividends
The directors do not recommend the payment of a dividend (2009: nil).
4 Segment reporting
Operating segments have been identified on the basis of internal reports about components of the Group that are
regularly reviewed by the Group's chief operating decision maker. The Group's chief operating decision maker is
considered by management to be the board of directors. The operating segments included in internal reports are
determined on the basis of their significance to the Group. In particular, operating mines are reported as
separate segments together with exploration projects that have significant capitalised expenditure. An analysis
of the Group's business segments is set out below.
All other
Kalsaka Angovia Baomahun segments Total
US$000 US$000 US$000 US$000 US$000
Year ended 31
December 2010
External revenue -
sale of gold 90,643 24,208 - - 114,851
Direct costs of
production (53,850) (20,984) - - (74,834)
Other operating and
administrative
costs (7,687) (4,100) - (5,604) (17,391)
--------------------------------------------------
Segmental result -
EBITDA 29,106 (876) - (5,604) 22,626
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Total assets 49,008 25,636 44,552 14,394 133,590
Capital expenditure 2,642 3,608 6,179 27 12,456
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All other
Kalsaka Angovia Baomahun segments Total
US$000 US$000 US$000 US$000 US$000
Year ended 31
December 2009
External revenue -
sale of gold 54,107 22,823 - - 76,930
Direct costs of
production (38,155) (21,006) - - (59,161)
Other operating and
administrative
costs (5,162) (3,752) - (4,594) (13,508)
--------------------------------------------------
Segmental result -
EBITDA 10,790 (1,935) - (4,594) 4,261
--------------------------------------------------
--------------------------------------------------
Total assets 56,956 27,066 38,732 2,031 124,785
Capital expenditure 5,700 1,844 3,353 34 10,931
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In 2010 the Group had one customer (2009: one).
The segmental result reported represents earnings before interest, tax, depreciation and amortisation (EBITDA)
and excludes share option charges, which is the measure of segmental profit regularly reported to the board of
directors. The accounting policies of the reporting segments are different from the Group's accounting policies
as follows:
SEDAR FOR FURTHER INFORMATION PLEASE CONTACT: Cluff Gold plc J.G. Cluff Chairman +44 (0) 20 7340 9790