Ernst & Young Mining Eye Q3 2012

Ernst & Young’s Mining Eye index monitors the performance of AIM mining companies on a weekly basis and can be viewed at www.ey.com/uk/miningeye. Movements and analysis of the index are reported in this quarterly publication.

Ernst & Young also produces a similar index for the oil and gas sector, which can be viewed at www.ey.com/uk/oilandgaseye.

To receive copies of the Mining Eye, please contact Olivia Russell on +44 (0)20 7951 5559 or email [email protected]. To receive copies of the Oil and Gas Eye, please contact Rebecca Hanifin on +44 (0)20 7951 6682 or email [email protected].

Area Contact:

Lee DownhamGlobal Mining & Metals Transactions LeaderErnst & Young, UKI+44 (0)207 951 [email protected]

The Mining Eye is written by:

Emily Colborne +44 (0)121 535 2086 [email protected]

Mining EyeQ3 2012

Q3 2012: the funding challenge ► ►TheMiningEyeindexfell3%overQ32012—anencouraginglyflatperformancecomparedwiththedramatic30%fallsinceJanuary2012.StrengtheningmetalspricesandsignsofimprovedgrowthinNorthAmericaandChinaprovidedsomesupport,althoughtheminingsectorcontinuestounderperformthewiderAIMmarket.

► ►However,financingconditionsonequitymarketsremainchallengingforjuniorsminers,withquarterlyequityproceedsraisedbythesectoronAIMattheirlowestsinceQ32004(at£84m).Riskaversionamonginvestorsisbeingmetwithreluctancefromcompaniestofurtherdiluteholdingsofexistingshareholdersatcurrentshareprices.

► ►Q32012sawtheearlysignsofdistressthatbecamewidespreadintheaftermathofthe2008financialcrisis,withasmallbutsymptomaticnumberofcompaniesreportingdistressedassetdisposals,strategicreviewsandlast-resortfinancing.

► ►Butcreativecostandcapitalmanagementissofarhelpingtosustainthemajoritythroughtheseturbulenttimes—cost-cutting,non-coreassetsales,fast-trackedcashgenerationoptions,andtheattractionofstrategic,long-terminvestmentpartners.

Mines & Money 2012TheErnst&YoungMining&Metalsgroup isaproudsponsorofMinesandMoneyLondon.ComeandmeetErnst&Young’sMiningteam on4–5DecemberattheBusinessDesignCentre,Islington,Londontohearaboutourlatestinsightsin the sector.

2 Ernst & Young Mining & Metals MiningEyeQ32012

Mining Eye FTSE AIM All-Share (rebased)

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Chart 1. Mining Eye index and FTSE AIM All-Share index performance over Q3 2012Source:Ernst&Young,ThomsonDatastream

Chart 3. Mining Eye index and FTSE AIM All-Share index performance, last 12 monthsSource:Ernst&Young,ThomsonDatastream

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Chart 2. Mining Eye index and peers over Q3 2012Source:Ernst&Young,ThomsonDatastream

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Chart 4. Mining Eye index and peers, last 12 monthsSource:Ernst&Young,ThomsonDatastream

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Q3 2012 Mining Eye in review

3Ernst & Young Mining & Metals MiningEyeQ32012

1Seepage8fordetailsofothernewadmissionsinQ32012.

Companyinformationsourcedthroughoutfrompubliclyavailablesources,includingcompanywebsitesandregulatoryannouncements.

TheErnst&YoungMiningEyeindexlost3%overQ32012— afallthatcomparesfavourablywiththe28%fallseenoverthefirsthalfoftheyear.Nevertheless,thiswasstillasignificantunderperformanceofthe3%gainbytheAIMAll-Shareindex. Apositiveupwardmovementincommoditypriceshelpedtomitigatetheseverityofthefall,theLMEXindexgaining10% andgold11%.ThemajorsfaredalittlebetterwiththeFTSE Miningindexgainingamodest2%overthequarter.

Theupwardmomentumincommodityprices,whileprovidingsomesupport,hasnotbeenfullyreflectedinequityprices.Thiscontinuingdisconnectisleadingcompaniestoconsiderthemselvessignificantlyundervaluedbythemarket.Themarketvaluesofnearlytwo-thirdsofAIMminersweretradingatover30%belowtheir52-weekhighsattheendofQ32012.

Despiteatentativerecoveryinpricestowardstheendofthequarter,financingconditionsonglobalequitymarketsare provingcontinuallychallenging,givinglittlegroundsforanycertaintyovertheshort-termoutlook.Globally,IPOvolumes inthesectorhaveretreatedto2009levels,withaverageproceedsraisedbyjuniorIPOsjustUS$3.3m.OnAIM,therewasonlyoneminingIPO(WishboneGold)inthethirdquarter,takingtheninemonthtotaltojustfourIPOs.1Globalequityproceedsfromsecondaryofferingsofequitybyjuniorminershavefallen41% year-on-year,indicatingtheextentofnegativeinvestorsentimentandtheexpensivefinancingoptionthatequityhasbecome.OnAIM,proceedsfellto£81mby34companiesinQ32012,from£96mby31companiesinQ22012,and£114mby18companiesinthesameperiodayearago.

Thefundingchallengeiscompoundedinanenvironmentofhighandincreasingoperatingcosts,weaknessincertaincommodities,andunforeseenoperationalchallenges,whichcanquicklyanddramaticallyimpactshort-termworkingcapital.Thetighteningavailabilityofequity(andabsenceofavailabledebt)reducesfinancialheadroomandimpactscompanies’abilitytoswiftlyaddressunexpectedcashflowshortfallsorcapitaloutlays.WehaveseenthematerialimpactoftheseconditionsonasmallbutnonethelesssignificantnumberofAIMminersthisquarterintheformofdistressedassetdisposals;high-cost,last-resortfinancing(suchassharesubscriptionagreements);operationsbeingplacedoncareandmaintenance;andstrategicreviews.

FluorminannouncedastrategicreviewofitsflagshipWitkopfluorsparmine,resultingintheminebeingplacedintocareandmaintenanceduetoongoingweaknessinthefluorsparmarket. ThedirectorsofNorseman Gold,whichisdevelopingtheNorsemangoldmineinWesternAustralia,placeditsoperatingsubsidiaryintovoluntaryadministration.Aseriesofoperationalchallengesattheminemeantthatproductionfellshortofexpectations,criticallyimpactingshorttermcashflow.Noventaarrangedarefinancingpackagedescribedasits“onlyrealisticoption”tostaveoffinsolvencyandinordertoproceedwiththedevelopmentofitsprojectsinMozambique.TheinitialproposedunsecuredUS$16mfacilityandlonger-termsecuredfacilityofuptoUS$35mcarried apunitiveannualinterestrateof25%.

Chart 5. Share price movement over Q3 2012 by commodity groupSource:Ernst&Young,ThomsonDatastream

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2ResultsofExtraordinaryGeneralMeeting,KiboMiningregulatorynewsrelease,6September2012.

Mitigating risk and optimizing capitalDespiteconstrainedaccesstocapital,weareseeingajuniorindustryin2012thatissmarter and leaner than it was in 2008–09. Juniorsarerespondingcreativelyandopportunistically,pursuinggrowththroughsuccessfulattractionofalternativefunding;mitigatingriskbybuildinginoptions;andoptimizingcapitalbyfocusinglimitedresourcesoncoreassets.InQ32012, wesawexamplesof:

► ►Non-coreassetdisposals

► ►Alternativerevenuestreams

► ►Synergisticacquisitions

► ►Farm-outagreements

► ►Strategicpartnersandalternativefundingstructures

Non-core asset disposals

Anumberofcompaniesannounced(non-distressed)disposalofnon-coreassetsinordertoraisecashandfocuslimitedresourcesandmanagementattentiononassetscentraltothecorestrategy.

Forexample,Central Asia Metals announcedanagreementtodisposeofitsEreenandHandgaitMongolianassetstoMongolianResourceCorporation,allowingthecompanytofocusonproductionatitsSX-EWKounradcopperplantinKazakhstan

anditscopper-golddrillingcampaigninMongolia.Pan African Resources announcedplanstodisposeofitsManicagoldexplorationprojecttoTerranovaMineralsforapotentialconsiderationof£4mcashandsharesintheenlargedTerranova.ThedisposalwillallowPanAfricantofocusonitscoreoperatingassetsinSouthAfrica,whilemaintainingpotentialupsidebenefitfromManica’sdevelopment,andraisecashfortheconstructionanddevelopmentofitsBramberTailingsRetreatmentproject.

Alternative revenue streams

Sometookadvantageofopportunitiestogenerateinterimcashflowfromsupplementaryassetstofundtheadvancementofcoreassetstowardproduction.Jubilee Platinum, which holds a51%interestinpowergenerationcompany,PowerAlt,receivedapprovalfromtheNationalEnergyRegulatorofSouthAfricatosellsurpluselectricitytoathirdparty,adealexpectedtoincreaseearningspotentialandprofitability.

Synergistic acquisitions

Wesawexamplesofcompaniesinvestingforsustainable,synergisticandnear-termgrowththroughsmall-scaleacquisitions.

Kibo MiningannouncedthereversetakeoverofMzuriEnergyandMaybornResourceInvestments,whichholdcoalanduraniumexplorationprojectsinTanzania

tocomplementKibo’sexistingactivitiesinTanzania.Kibobelievesitwillbenefitfromeconomiesofscaleandthe“optimization ofoperationalcapacityontheground”2.

CoalcompanyAltona EnergycompleteditsacquisitionofadvancedexplorationlicencesinChina—describedas“transformational”,withthepotentialfornear-term,sustainablecashflow.Targetingproductionin2013,Altonasaidtheacquiredassetswouldmitigatetheneedtoraiseadditionalequityasitcontinuesthelonger-termdevelopmentofitscoal-to-liquidArckaringaproject.ThecompanyalsocitedthebenefitofaccesstoChinesedemand,raisingthepossibilityofaHongKongcross-listing.

Farm-out agreements

Farm-outsinvolvetheassignment ofaninterestinmineralprojectstoa third-party.Itprovidesthe“farmor”withtheoptionofmaintaininginterestandownershipwhilereducingoperatingrisksandcosts—potentiallyenablingthecompanytooverseethedevelopmentofaprojectthatitwouldnototherwisehavethecashtodevelop.African Consolidated Resources(ACR)announcedthatGalileoResourceswouldbefarmingintoitsrareearthsjointventure,theNkombwaHillRareEarthproject,innorth-eastZambia.ACRwelcomedGalileo’stechnicalrareearthsexpertiseandmanagementtrackrecordatfasttrackingexplorationprojects.Jubilee Platinumenteredintoanagreementfor

5 Ernst & Young Mining & Metals Mining Eye Q3 2012

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OutlookTheoutlookforequitymarketsremainsuncertainandunpredictable,withtheapparentdisconnectbetweenassetpricesandcommodityvaluationsshowinglittlesignofabatement.Asaresult,expectthatmanyshareholderswillcontinuetoviewequityasanexpensiveanddilutiveoptionoflastresortatcurrentvaluations.Forthoseinapositionofchoice,alternativefunding,particularlydebt,islikelytobesought,potentiallyfromnon-traditionalsources,untilequitymarketconditionsconsistentlyshowimprovement.

Themajorproducersarerespondingtothechangingindustryconditionswithashiftinpriorities:from“growthforgrowth’ssake”toafocusoncostcontrol,creditqualityanddisciplinedgrowththatoptimizesshort-termreturnstoshareholders.Thisisshapingmergersandacquisitionsactivityin2012.Ourexpectationisthatoneoftheconsequenceswillbeafocuson“lower-risk”,strategicminorityfootholdacquisitionsandthatthismayopenupfurther,long-termfundingoptionstothejuniorsector.Wealsoexpecttoseeacontinuedflowofcapital(bothdebtandequity)fromAsianandMiddleEasterninvestors,andalsopotentiallyprivatecapital,intoadvancedexplorationprojects.Competitionforsuchlong-terminvestmentwillbeintense.

Earlystagejuniorsarefacedwithfeweroptionsandweexpecttoseecompaniesraisingcapitalwherevertheycan—atsomerisk tofinancialflexibilityandcontroloverprojects.Costcontainmentandtheallocationofmanagementandfinancialresourcestowardscoreprojectsmustremainthepriority.Thesearechallengingtimes,withclearimplicationsforthelonger-termexplorationpipeline.

IndianPacificResourcestoearnuptoa90%interestinallcommoditiesexceptPGMs,LME-tradedmetalsandchromeonJubilee’sAmbodilafatenementareainMadagascar.TheagreementwillgiveJubileepotentialexposuretoironorewithnoinitialfundingonitspart.

Strategic partners and alternative funding structures

Strategicinvestors,particularlyprivatewealthintheformofChinesestate-ownedenterprisesandJapanesetradinghouses,continuetotakeinterestinthejuniorresourcessectorintheirquestforsecurityofsupply.Lessinfluencedbyshort-termmarketsentiment,suchinvestorscan

proveinvaluablecornerstoneinvestorsthroughouttheprojectdevelopment cycle—butinvariablywithtermsandconditions attached.

Amara Mining(previouslyCluffGold)announcedtheformationofastrategicalliancewithSamsungC&TCorp,commencingwithaUS$20munhedgedofftakedebtfacility.Amarahasoneproducingmine,theKalsakagoldmineinBurkinaFaso,andanumberofdevelopmentstageassets.ThepartnershipwillseeSamsunggainaccesstogoldbullionsupplyinreturnforprovisionoffinancialsupporttoAmara—particularforthedevelopmentoftheBaomahunprojectinSierraLeone.

Hummingbird Resources announced that itisindiscussionswiththeInternationalFinanceCorpoverapossibleUS$5mstrategicequityinvestment.Thecompany’sCEOdescribedthepossibleinvestmentasasignificantendorsementoftheviabilityofitsDugbe1ironoreprojectinLiberia,aswellasadoor-openertopotentialfuturedebtfinancing.


Winners in Q3 2012

► Condor Goldsawthelargestincreaseinitssharepricethisquarter,gaining208%followingaseriesofpositivedrillingresourcesatits100%-ownedLaIndiagoldprojectinNicaragua.InSeptember,thecompanyannouncedanupgradedmineralresourceof16.2mtat4.6g/tfor2,375,000ozgold,including5.3mtat4.4g/tfor751,000ozgoldintheIndicatedcategory (toCIM3standards).Subsequenttoquarter-end,Condorannouncedthestrategicacquisitionoftheadjacent LaMojarraconcessionwhichthecompanybelievestheLaIndiaresourcemayextendinto.

► Sunrise Resources’sharepricegained112%overthethirdquarter.Theearly-stageexplorationcompanyhasstarteddrillingonitsCuediamondandDerryginaghbariteprojects,inAustraliaandIreland,respectively.Theresultsofthedrillinghadyettobeconfirmedatquarter-end,butinvestorsappearedtowelcomethecompany’s

renewedstrategicfocus,followingitsdecisiontoabandonitsoptionontheLongLakegoldpropertyinCanada.

► Botswana Diamonds announced the recoveryoffirstdiamondsfromitssamplingprojectinCameroon.While ofindustrialquality,thegemsconfirmthediamondiferouspotentialofthedeposit.Nextstepsforthecompanyaretoundertakebulksamplingtoidentifygradepertonneandvaluepercarat,alongsideascopingstudytoexploretheproject’sfeasibility.ThecompanyisalsoprogressingexplorationonitsOrapaprospectinBotswana.Itssharepricegained56%overQ32012.

► Amongthelarger-capcompanies, Sirius Mineralsgained45%withaseriesofpositivedrillingupdatesonitsYorkPotashprojectintheUK.ThisfollowstheannouncementofitsmaidenresourceinJune,inwhichthecompanyreported“theworld’slargestandhighestgraderesource”

ofpolyhalite,amulti-productpotashore.Drillingisnowunderwaytofurtherdelineate the resource in order to securefinancingfortheproject,whilethecompanyalsolaunchestheplanningapplicationprocess.

► African Consolidated Resources announcedasignificantupgrade toitsresourceestimateatitsPickstone-PeerlessgoldprojectinZimbabwe. Thecompanyreportedanincrease to36.63mtcontaining3.2mouncesofgoldatagradeof2.7g/tgold,ofwhichover50%isintheMeasuredandIndicatedcategory(JORC-compliant).AfricanConsolidatedResourcesisinitiatingabankablefeasibilitystudy,targetingproductionofover100,000ouncesperyear—whichthecompanysays would be more than double the outputofZimbabwe’sexistinglargestmine.ACR’ssharepriceclosedthequarterup17%.

3CanadianInstituteofMining,MetallurgyandPetroleum(CIM)StandardsonMineralResourcesandMineralReserves.

Chart 6. Mining Eye index and FTSE AIM All Share index since 2004Source:Ernst&Young,ThomsonDatastream


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Fallers in Q3 2012


► Ironveld sufferedadisappointingperformancefollowingitsplacingandreadmissiontoAIMinAugust,witha65%fallovertheperiod.Thecompany,previouslyMercuryRecyclingGroup,acquiredtheSouthAfricanironoreassetsofSylvaniaPlatinumandintendstomineTi-magnetiteoreasfeedstockforitsownpigironplant.Thecompanyhasretaineditslamprecyclingbusinesses,whichsufferedlossesinthefirsthalfoftheyear.

► Coal of Africa’ssharepricesuffered asignificantfalloverthequarter(59%),againstabackdropofaweakthermalcoalmarket.Thecompanyclosedthequarterwithamarketvalueofjust£116m,from£246mayearago,astheglobalthermalcoalpricefell31%overthesameperiod.Strikeactionatthecompany’sSouthAfrican

Mooiplaatscolliery,andthewithdrawalofBEEpartnerExxaroCoalProprietaryfromitsrighttoa30%participationintheMakhadocoalproject,negativelyimpactedsharepriceperformance.Postquarter-end,aproposedstrategicpartnershipwith,andUS$100mequityinvestmentby,HaohuaEnergyInternational(HongKong)helpedsharestoabriefrecovery.

► Galantas Goldlost46%overthethirdquarter,despitepositiveresultsfrom apreliminaryeconomicassessmentonitsOmaghgoldpropertyinNorthernIreland.Problemsregardingplanningconsenthaveledthecompanytoannounceareductioninitsworkforce.

► DisputeswithhostgovernmentsaffectedbothCopperDevelopmentCorpandRichlandResourcesinthe

quarter.Copper Development Corp remainssubjecttoanongoingdisputewiththePhilippinesGovernmentovertheBasayexplorationpermit,causingsharestofall45%overQ32012.Richland Resources’ sharepricealsolost45%,followingreportsofongoingillegalminingactivitiesatitsTanzaniangemstoneproperties,andthelikelynegativeimpactofthisonthecompany’sinterimfinancialresults.Thecompany’ssharesweretemporarilysuspendedinearlyOctober,followingaclaimforretrospectiveroyaltiesfromtheTanzanianGovernmentandaprovisionalbanongemstoneexports.Richlanddisputestheclaim,andexportrightswerereinstatedonaninterimbasis,pendingare-auditofthefinancialrecords.

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Chart 7. Mining Eye index, gold, copper and LME Index over Q3 2012Source:Ernst&Young,ThomsonDatastream

Ins and outs of the AIM mining universe


FivecompaniesjoinedAIMthisquarter,onethroughIPO,andtherestviaintroductionsandmarkettransfers.ThesizeofourAIMuniverseofminingandmining-relatedcompaniesstands170strongattheendofQ32012.Thetotalvalueoftheuniversewas£8.6batquarter-end,representingaslightincrease(2%)inquarter-on-quartervalue.

Admissions

► Wishbone Goldwasthequarter’sonlyIPO,raising£0.5minaJulylistingonAIM.Thecompany,whichhastwogoldconcessionsinAustralia,isheadedbyex-SiriusMineralsCEORichardPouldenandaimstoconsolidate“viable”goldprojectstobecomeaglobally-diversifiedpreciousmetalscompany.

► ►IronveldwasadmittedtoAIMinAugust,followingthereversetakeoverofironoreassetsinSouthAfricabyAIM-listedMercuryRecyclingGroup.Ironveldownsavertically-integratedpigironprojectinSouthAfrica’sBushveldcomplex,targetingminingof2.4mtonsmagnetiteperannumtofeeda1,000,000tpapigironplant,withpotentialforvanadiumandtitaniumby-products.

► Black Mountain ResourcesjoinedAIMviaanintroduction,raisingnonewfunds.Thecompany,whichhasaprimarylistingontheAustralianSecuritiesExchange,isexploringforsilverintheUS,withfirstproductiontargetedforQ42012.BlackMountainundertookthesecondarylistingonAIMin order to broaden its international investorbase.

► ►Namakwa DiamondslistedonAIMfollowingthecancellationofitslistingonLondon’sOfficialList(theMainMarket)duetoitsinabilitytomeetfree-floatrequirements.NamakwahasdiamondoperationsinLesotho,SouthAfricaandNamibia.Thecompany’smarketvalueatquarter-endwas£38m.

► ►Praetorian Resources,aninvestmentcompanyfocusedontheresourcessector,alsolistedonAIM,raising£20m.CurrentcoreinvestmentsincludeA-CapResources,Ampella

Changes to the Mining Eye indexInthisedition’squarterlyindexreview,therewerejusttwoindexconstituentchanges.EMEDMiningreplacedBellzoneMining,followingarelativelystrongsharepriceperformancebyEMEDasitadvancestowardsproductionatitsflagshipRioTintoCoppermine.BellzoneMiningdroppedjustoutsidetheindexfollowingthedisappointingperformanceofitssharepriceoverthequarter.

Mining,Ausgold,AustralasianResources,GalileoResourcesandSovereignMinesofAfrica.

Readmissions

► ►Kibo MiningwasreadmittedtoAIMfollowingthereversetakeoversofMzuriEnergyandMaybornResourceInvestments,addingcoalanduraniumexplorationassetstothecompany’sexistingTanzanianportfolio.

► Touchstone Gold was readmitted toAIMfollowingitsre-domiciliationfromtheBritishVirginIslandstotheProvinceofOntario,Canada.

Chart 9. AIM mining admissions and delistings since 2006Source:Ernst&YounganalysisofAIMmarketstatistics;includesplacings,introductionsandreadmissions;excludestransferstoandfromtheMainMarket

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Chart 8. Value of AIM mining universe and as % of all AIM, 2004–2012Source:Ernst&YounganalysisofAIMmarketstatistics;marketvaluesasatquarter-end

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Fundraising in Q3 2012


Withjust£4mraisedfromnewequityissuesinQ32012,and£81mfrom34follow onissues,totalproceedsraisedbytheAIM-listedminingsectorfelltotheirlowestquarterlyamountsinceQ32004.Thisequatedtoaquarter-on-quarterfallof12%,andyear-on-yearfallof37%.TheslowdowninIPOsandequityfinancingwasreflectedacrossthemarket,withAIMtotalproceedssufferingaquarterlyfallof22%.Miningsectorfundraisingaccountedfor15%oftotalproceedsraisedacrossthemarket (Q22012:13%).Thelargestissuesareoutlined below:

► ►Nautilus Mineralsraised£21mviaaprivateplacementthatincludedparticipationbyexistingshareholders

MBHoldings(throughMawaridOffshoreMining),MetalloinvestandAngloAmerican.Theproceedswillbeusedtocontinuebuildingthecompany’sSeafloorProductionSystemasitawaitsresolutionofitsdisputewiththePapuaNewGuineanGovernment.Followingtheplacement,MetalloinvestmaintaineditsholdinginNautilusat21%,AngloAmericanheld11.1%andMawaridincreasedto16.9%.

► ►Coal of Africaraisedatotalof£28.9mviatheissueofshareswithinstitutionalinvestors,atadiscountof1.96%tothereferenceprice.Theboardnotedthesupportofitsshareholders,particularlyinlightofthechallengingmarket

conditions in the world coal market. UseofproceedsincludesdevelopmentattheVelecollieryandpart-payment ofacquisitioncostsforChapudi.

► ►Baobab Resourcesraised£4mthroughanequitysubscriptionagreementwithRedbirdInvestments.RedbirdisaninvestmentvehicleoftheAfricanMineralsExploration&DevelopmentSICARSCAfund,arecentlylaunchedLuxembourg-basedfundthatisactivelyinvestinginbrownfieldmineralprojects,predominantlyinAfrica.Proceedswillbeusedforcompletionofthepre-feasibilitystudyontheTeteironoreprojectandongoingworkingcapital.

Chart 10. Quarterly trend of funds raised on AIM — mining and all sectorsSource:Ernst&YounganalysisofAIMmarketstatistics

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Q1

2012

Q2

2012

Q3

2012

AIM

total fund raised GB£mA

IM fu

nds

rais

ed G

B£m

1WhereAIMistheprimarymarketoflistingforthecompany’sfirstpublicissueofshares(doesnotincludesecondarylistings). 2Includesintroductions,secondarylistings,transfersandreadmissions(moneyraisingandnon-moneyraising). 3Fundsraisedfromfollowonissuesofshares.

Fundraising on AIM, 2006–2012 Source:Ernst&YounganalysisofAIMmarketstatistics

Table 1. Fundraising on AIM, 2006–2012

Mining AIMMining as % of all AIM

New issues Further issues3 Total issues New issues Further

issuesTotal

issuesTotal

proceedsNo.ofIPOs1

No.ofothernew issues2

Proceeds£m No.ofmoneyraisingissues

Proceeds£m Proceeds£m Proceeds£m Proceeds£m Proceeds£m %

Q3 2012 1 5 4 34 81 84 243 317 560 15%

Q22012 0 0 0 31 96 96 155 559 714 13%

Q12012 3 2 22 44 228 251 51 870 921 27%

Q42011 0 1 0 34 154 154 77 759 836 18%

Q32011 4 4 20 18 114 134 271 414 685 20%

Q22011 4 1 26 48 266 292 182 954 1,136 26%

Q12011 0 4 1 46 634 635 77 1,564 1,641 39%

Q42010 7 2 153 60 845 998 541 2,532 3,073 32%

Q32010 1 5 43 38 57 100 291 854 1,144 9%

Q22010 4 2 88 47 622 710 145 1,404 1,549 46%

Q12010 1 2 7 32 189 196 242 694 936 21%

2011 8 10 47 146 1,169 1,215 608 3,690 4,298 28%

2010 10 14 291 180 1,714 2,005 1,219 5,484 6,703 30%

2009 0 4 1 195 1,029 1,030 741 4,696 5,436 19%

2008 3 4 77 148 1,003 1,080 1,079 3,215 4,294 25%

2007 9 16 148 185 2,302 2,450 6,829 9,610 16,439 15%

2006 28 31 618 123 1,081 1,699 9,909 5,734 15,643 11%


Index constituents selected at start of each quarter Source:Ernst&Young;ThomsonDatastream

Q22012 MV(£m) Q32012 MV(£m) Q42012 MV(£m)

AfricanMinerals 1,825 AfricanMinerals 1,047 AfricanMinerals 984

KalahariMinerals 651 KirklandLakeGold 488 KirklandLakeGold 509

KirklandLakeGold 626 HighlandGoldMining 344 SierraRutile 391

HighlandGoldMining 430 SierraRutile 326 HighlandGoldMining 376

CoALofAfrica 407 ArchipelagoResources 293 ArchipelagoResources 345

LondonMining 390 LondonMining 270 SiriusMinerals 301

ArchipelagoResources 372 CoALofAfrica 250 PanAfricanResources 261

NautilusMinerals 330 PanAfricanResources 224 PatagoniaGold 234

ZanagaIronOre 322 SiriusMinerals 217 LondonMining 204

SierraRutile 296 PatagoniaGold 195 WestAfricanMinerals 158

PatagoniaGold 290 WestAfricanMinerals 190 ZanagaIronOre 146

SiriusMinerals 280 ZanagaIronOre 166 AmaraMining 134

PanAfricanResources 246 BellzoneMining 129 NautilusMinerals 121

BellzoneMining 237 NautilusMinerals 126 Gemfields 120

EasternPlatinum 231 EasternPlatinum 125 CoALofAfrica 117

Metminco 173 Gemfields 122 EasternPlatinum 108

Petmin 156 Petmin 121 EMEDMining 108

CluffGold 132 Metminco 120 KrysoResources 105

Gemfields 121 CluffGold 113 Petmin 98

FrontierMining 111 KrysoResources 102 Metminco 95

Top20marketvalue£m 7,626 Top20marketvalue£m 4,968 Top20marketvalue£m 4,914

Totaluniversemarketvalue£m 12,401 Totaluniversemarketvalue£m 8,533 Totaluniversemarketvalue£m 8,695

Top20represent(%) 61% Top20represent(%) 58% Top20represent(%) 57%


Shadingrepresentsindexentrants

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