The Koffiefontein mine in South Africa

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Consolidated Statement of Cashflows

US$ million Notes 2011 2010
Profit before taxation for the year from continuing operations   64.4 69.0
Depreciation of property, plant and equipment – exploration   0.1 0.1
Depreciation of property, plant and equipment – mining   22.2 11.6
Depreciation of property, plant and equipment – other   0.1 0.2
Amortisation of intangible assets   1.0
Reversal of impairment   (11.7)
Impairment   5.2
Profit on sale of Kono project   (0.8)
Loss/(profit) on sale of property, plant and equipment   0.3 (3.7)
Recycling of foreign exchange differences on exploration projects   (12.3)
Release of fair value uplift on sales of inventory acquired through second 50% acquisition of CIHL   26.4
Fair value uplift on acquisition of additional 50% of CIHL   (31.0)
(Increase)/decrease in provisions   1.4 (2.1)
Finance income   (7.7) (7.8)
Finance expense   11.5 12.6
Share based payment provision   1.9 0.9
Payments for share options cancelled   (0.8)
Foreign exchange gain 10 (18.9) (5.1)
Operating profit before working capital changes   68.0 59.0
Increase in trade and other receivables   (24.8) (0.3)
Increase in trade and other payables   12.5 4.6
Increase in inventories   (3.5) (11.2)
Cash generated from operations   52.2 52.1
Finance expense   (1.2) (1.6)
Taxation paid   (0.4) (1.7)
Net cash generated from operating activities   50.6 48.8
Cashflows from financing activities      
Proceeds from sale of property, plant and equipment   0.1 3.9
Cash acquired with acquisition of subsidiary   0.4
Acquisition of assets at Kimberley Underground net of cash   0.3 (2.0)
Acquisition of assets at Kimberley Underground pre-acquisition   (16.6)
Acquisition of 4% interest in Koffiefontein 3 (0.8)
Finance income   2.2 0.4
Acquisition of property, plant and equipment   (105.2) (33.4)
Loans advanced to BEE partners   (8.7)
Transfer to restricted cash deposits   (218.3) (5.3)
Net cash utilised in investing activities   (330.4) (52.6)
Cashflows from financing activities      
Proceeds from the issuance of share capital   339.1 120.1
Payment of share placing costs   (17.6) (6.6)
Increase in non-current borrowings   75.6
Repayment of non-current borrowings   (15.0) (43.8)
Repayment of current borrowings   (32.3) (48.0)
Net cash generated from financing activities   349.8 21.7
Net increase in cash and cash equivalents   70.0 17.9
Cash and cash equivalents at beginning of the year   24.8 6.7
Effect of exchange rate fluctuations on cash held   2.1 0.2
Cash and cash equivalents at end of the year   96.9 24.8

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