Numis - Full year results; cash flowing (BUY) sp 51 target sp 70p Full year to Dec 2010 results were broadly in line with our numbers, although slightly higher cash operating costs and depreciation charge saw PBT come in at $19.8m versus our expected $25.7m.

We have nudged up our cash cost forecasts which has resulted in a slight drop in our target price to 70p from 75p (current trading 51p).

Nevertheless, we continue to see operations performing well, with strong cash flow during 2011 allowing the company to further reduce debt (potentially to zero by year-end) and fund ongoing drilling.

Q1 production 14koz was good despite seasonal challenges and we see potential for a beat to our estimated 60koz 2011 production at approx $350/oz (up from $320/oz).

We maintain our Buy recommendation and look forward to further news flow in the coming months from the exploration and development programmes. Mining Analyst Andy Davidson +44 (0)20 7260 1232
Felicity Edwards St Brides Media and Finance Ltd Chaucer House 38 Bow Lane London EC4M 9AY Tel: +44 (0) 207 236 1177 Mob: +44 (0) 7748 843871 Fax: +44 (0) 207 236 1188 Email: Web: www.stbridesmedia.co.uk