bulyanhulu gold mine, tanzania open financial...
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Bulyanhulu Gold Mine, Tanzania Open financial model from OpenOil, July 2015 Summary of documents and sources used TABLE OF CONTENTS
UNITED REPUBLIC OF TANZANIA The Mining Act 1998
Royalties The Income Tax Act 2004
Full Document Income Tax
Finance Laws (Miscellaneous Amendments) Act 1997 Profit/ Loss Computations: Expenditure Deductions
Report of the Presidential Mining Review Committee to Advise the Government on Oversight of the Mining Sector
Periodicity and Depreciation Rules 2001 Abolished Additional Capital Allowance Relief
WORLD BANK Commodity Markets Outlook April 2015 GEM All Commodities Price 1965 2014
BARRICK/ BARRICK GOLD (BG) 2011, Barrick Annual Report
73% Interest (Ownership Proportion) Bulyanhulu Mine 2010, BG Annual Report
Key Mine Statistics, 2009 2010 2006, BG Annual Report
Long Term Debt, 2004 2006 2006 Annual Report 2005, BG Annual Report
Full Report Operational Summary, 2005 Production Operational Summary, 2005 Financial
2004, BG Annual Report Operational Summary, 2004
2003, BG Annual Report Operational Summary, 2003
2002, BG Annual Report Operational and Financial Statistics, 2002
Bulyanhulu financial model, Openoil.net Document Summaries Page 1 of 39
2002 Annual Report 2001, BG Annual Report
2001, First Year of Production Mine Figures Summary
2001, Bulyanhulu Mine Tour Presentation Summary Fiscal Terms
1999, BG Annual Report Acquisition of Sutton Resources Ltd. The Bulyanhulu Project Reserves, Resources and Future Production
ACACIA/ AFRICA BARRICK GOLD (ABG) Acacia, Analyst Site Tour Pack, 2015
Historic Operating Metrics, 2010 2014 Life of Mine (LOM) estimate Reserves and Resources CAPEX Bulyanhulu Five Year Plan
2014, Acacia Annual Report Key Mine Statistics, 2013 2014 Project Financing: Drawdown and Interest Rate Ownership
2012, ABG Annual Report 2012 Annual Report
Voluntary Move to Royalty of 4% Key Mine Statistics, 2011 2012
2010, ABG Annual Report Gold Sales and other Operating KPIs
2010, ABG Prospectus Gold Sales and other Operating KPIs Contested: 15% Additional Capital Allowance (ACA) Balance of Unredeemed ACA as of 2009 Global Offer Statistics Exploration and Evaluation Historical Production and Costs, 2007 2009 Estimated Date for End of Mining/ Processing Royalty of 3% Import Duty Exemption Reserves and Resources No Gold Hedging Policy
SUTTON RESOURCES LTD Sutton Resources Ltd Prospectus 1997
Prospectus Summary Use of Proceeds
USGS
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USGS 2006 Minerals Yearbook Tanzania 2006 Production
JOINT PUBLICATION OF TANZANIA EPISCOPAL CONFERENCE, NATIONAL MUSLIM COUNCIL OF TANZANIA, AND THE CHRISTIAN COUNCIL OF TANZANIA
The 1bn$ Question, How Can Tanzania Stop Losing So Much Tax Revenue Additional Capital Allowance
US FEDERAL RESERVE Inflation Policy
WORKINGS Production
Including, thereby, Annual Listing of Sources for Actual Production (Sales) ASSUMPTIONS
Project Financing Principal Repayment Profile, Assumption 40$m Exploration Cost Year 2000, Assumption
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UNITED REPUBLIC OF TANZANIA
The Mining Act 1998
Royalties Full Document
Page 132, continued directly overleaf:
Page 133. hh
The Income Tax Act 2004
Full Document
Income Tax
Page 131. This remains unchanged from that listed in 2001 as the project’s summary fiscal terms.
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Finance Laws (Miscellaneous Amendments) Act 1997 Full Document
Profit/ Loss Computations: Expenditure Deductions
Page 7.
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Additional Capital Allowance (ACA)
Page 7. ACA Allowance Base
Page 7.
Page 8.
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Report of the Presidential Mining Review Committee to Advise the Government on Oversight of the Mining Sector 15% Additional Capital Allowance (ACA) Full Report
Page 7.
Periodicity and Depreciation Rules
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Page 103.
2001 Abolished Additional Capital Allowance Relief
Page 103.
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WORLD BANK
Commodity Markets Outlook- April 2015 Full Document
Page 40 (near top and bottom of page shown, same table). Above is source for future prices forecast
GEM All Commodities Price 1965 2014 Data
(data redisplayed from .xsl worksheets).
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BARRICK/ BARRICK GOLD (BG)
2011, Barrick Annual Report
73% Interest (Ownership Proportion) - Bulyanhulu Mine 2011 Annual Report
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2010, BG Annual Report
Key Mine Statistics, 2009 - 2010 Full Report
Page 38.
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2006, BG Annual Report
Long Term Debt, 2004 - 2006 2006 Annual Report
Page 137
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2005, BG Annual Report
Full Report
Operational Summary, 2005 - Production
Pages 28 (left of divide) and 29 (right of divide).
Operational Summary, 2005 - Financial Continuation of above table (showing rows further down).
Pages 28 (left columns) and 29 (right columns).
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2004, BG Annual Report
Operational Summary, 2004 Full Report
Pages 2425 (collage)
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2003, BG Annual Report
Operational Summary, 2003 Full Report
Pages 2021 (collage)
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2002, BG Annual Report
Operational and Financial Statistics, 2002 2002 Annual Report
Page 33
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2001, BG Annual Report
2001, First Year of Production Full Report Key facts: on time startup, April 2001; gold recovery rates rose from 82% ,initially, to 86%, in December; production totalled 241,575 ounces of gold at a total cash costs of $197 per ounce; and proven and probable reserves increased for the third year in a row, rising 20 percent to 12 million ounces. Key facts collated from Page 38.
Mine Figures Summary
Page 38
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2001, Bulyanhulu Mine Tour Presentation
Summary Fiscal Terms Presentation
Page 2 (continuing directly overleaf to the below). NB: “KCML” is the acronym for “Kahama Mining Corporation Limited”, i.e. Barrick’s subsidiary.
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Page 3.
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1999, BG Annual Report
Acquisition of Sutton Resources Ltd. Full Document
Page 62.
The Bulyanhulu Project - Reserves, Resources and Future Production
Page 30.
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ACACIA/ AFRICA BARRICK GOLD (ABG)
Acacia, Analyst Site Tour Pack, 2015 Analyst Document
Historic Operating Metrics, 2010 - 2014
Page 16.
Life of Mine (LOM) estimate
Page 16. Hence, last year of production would be 2015 + 34 years minus 1 year (i.e. current year at time of the report and estimate of LOM).
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Reserves and Resources
Page 14.
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CAPEX
Page 37.
Bulyanhulu Five Year Plan
Page 36
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2014, Acacia Annual Report
Key Mine Statistics, 2013 - 2014 2014 Annual Report
Page 26.
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Project Financing: Drawdown and Interest Rate
Page 41
Ownership
Page 108.
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2012, ABG Annual Report 2012 Annual Report
Voluntary Move to Royalty of 4%
Page 13. NB: as per the ABG Annual Report 2010, the Royalty was previously 3%.
Key Mine Statistics, 2011 - 2012
Page 26.
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2010, ABG Annual Report
Gold Sales and other Operating KPIs Full Report
Page 38.
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2010, ABG Prospectus Full Report
Gold Sales and other Operating KPIs
Page 134.
Contested: 15% Additional Capital Allowance (ACA) The below items show: the basis for ACA; the relinquishment of ACA compounding from 1st January 2007; and the fact that “BGML (Bulyanhulu Gold Mine Limited) and NMGL(North Mara Gold Mine Limited) disagree with the TRA (Tanzania Revenue Authority) over the method and timing of the calculation” (page 25), i.e. including whether ACA should be calculated on a compound basis or not. The quote at page 255, confirms that ABG considers that, even if the “TRA’s position should prevail” against its own, then only the ability of ACA to “shelter future taxable income” after 21st December 2009 would be impacted, not before.
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Page 25.
Page 69. NB: MDA = Mining Development Agreement.
Page 254, and continued overleaf below:
Page 255.
Balance of Unredeemed ACA as of 2009
Page 25 and continued overleaf:
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Page 26. The relevant figure is that for BGML, i.e. $431m.
Global Offer Statistics
Page 40. CAPEX
Page 176.
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Exploration and Evaluation
Page 177.
Historical Production and Costs, 2007 - 2009
Page 323.
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Estimated Date for End of Mining/ Processing
Page 288.
Royalty of 3%
Page 68. NB: the level of project Royalty payment increased in 2012 to 4% on a “voluntary” basis.
Import Duty Exemption The “company and its contractors shall be entitled to import, without restriction, all items required for the design, construction, installation and operation of the applicable mine.” Page 69.
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Reserves and Resources
Page 56.
No Gold Hedging Policy
Page 68.
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SUTTON RESOURCES LTD
Sutton Resources Ltd Prospectus 1997 Full Document
Prospectus Summary
Use of Proceeds
Page 38. Link to relevant assumption.
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USGS
USGS 2006 Minerals Yearbook Tanzania
2006 Production Full Document
Page 2. NB 1kg = 31.1034 troy ounces. Hence, 10,300kg = 320,365 troy ounces.
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JOINT PUBLICATION OF TANZANIA EPISCOPAL CONFERENCE, NATIONAL MUSLIM COUNCIL OF TANZANIA, AND THE CHRISTIAN COUNCIL OF TANZANIA
The 1bn$ Question, How Can Tanzania Stop Losing So Much Tax Revenue
Additional Capital Allowance Full Report
Page 37.
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US FEDERAL RESERVE
Inflation Policy
Website source: see Documentation Index showing Remote URLs
Since the Contract is denominated in USD$ the model takes into account the above USD
inflation, and for simplicity we exclude the inflation of the Tanzanian Shilling. Further to note
that all costs are inflated over the model’s time period.
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WORKINGS
Production
Including, thereby, Annual Listing of Sources for Actual Production (Sales) Summed sales (where available) or production (otherwise) for each year since first production in 2001: 242,000 ounces of production recorded. Subsequent years as follows (rounded to the nearest 1,000), totaling c.3.8m ounces:
356,000 ounces of production (2002); 314,000 ounces of production (2003); 350,000 ounces of production (2004); 311,000 ounces of production (2005); 320,365 ounces of production (2006); 281,188 ounces of production (2007); 205,144 ounces of production (2008); 255,121 ounces of production (2009); 262,442 ounces of production (2010); 269,981 ounces of production (2011); 235,410 ounces of production (2012); 195,304 ounces of production (2013); and 215,740 ounces of production (2014).
ASSUMPTIONS
Project Financing Principal Repayment Profile, Assumption Repayments relate to drawdown of funds referenced above. Profile: 6 years of principal repayments, 2014 2019 inclusive, repaying full sum of project financing (including accrued interest), with 20% of the total repayment falling in each of the four years 2015 and 2018 and 10% falling in each of the first and end years of this profile, i.e. 2014 and 2019.
40$m Exploration Cost Year 2000, Assumption Sutton Resources Ltd Prospectus 1997 shows $7.9 exploration for “Phase 1” exploration, and this extrapolated to a total of $40m for the years prior to the Barrick Gold takeover of the project in 1999, and included as an exploration cost in the following year (2000) as an assumption.
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