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ANGLOGOLD ASHANTI LIMITED - REPORT TO SHAREHOLDERS FOR THE QUARTER AND SIX
MONTHS ENDED 30 JUNE 2005
ANGLOGOLD ASHANTI LIMITED
Registration No. 1944/017354/06
Incorporated in the Republic of South Africa
Share codes:
ISIN: ZAE000043485
JSE: ANG
LSE: AGD
NYSE: AU
ASX: AGG
GSE (Shares): AGA
GSE (GhDS): AADA
Euronext Paris: VA
Euronext Brussels: ANG
Report to shareholders
for the quarter and six months ended 30 June 2005
Group results ...
- Gold production steady at 1.569Moz.
- Strong financial performance, including $74m increase in profit
attributable to equity shareholders to $96m.
- Headline earnings adjusted for the effect of unrealised non-hedge
derivatives up 19% to $92m.
- Total cash costs down 2% to $278/oz, with South African total cash
costs 3% lower at R60,287/kg as a result of cost
cutting initiatives.
- Interim dividend of R1.70 ($0.25)/share declared.
Quarter Six months
ended ended ended ended
Jun Mar Jun Jun
2005 2005 2005 2004
Restated
SA rand / Metric
Operating review
Gold
Produced
- kg / oz (000) 48,792 48,808 97,600 80,972
Price received(1)
- R/kg / $/oz 87,314 82,152 84,739 84,152
Total cash costs
- R/kg / $/oz 57,351 54,778 56,064 54,456
Total production costs
- R/kg / $/oz 74,728 70,639 72,683 67,924
Financial review
Gross profit
- R / $ million 931 255 1,186 971
Gross profit adjusted
for the effect of
unrealised non-
hedge derivatives(2)
- R / $ million 765 676 1,441 1,593
Profit attributable
to equity
shareholders
- R / $ million 566 50 616 425
Headline earnings
- R / $ million 665 102 767 563
Headline earnings
adjusted for the
effect of unrealised
non-hedge
derivatives(3)
- R / $ million 604 464 1,069 956
Capital expenditure
- R / $ million 1,068 864 1,932 1,579
Earnings per
ordinary share
- cents/share
Basic 214 19 233 178
Diluted 214 19 232 171
Headline 251 39 290 236
Headline earnings
adjusted for the
effect of unrealised
non-hedge
derivatives(3)
- cents/share 228 175 404 401
Dividends
- cents/share 170 170
Quarter Six months
ended ended ended ended
Jun Mar Jun Jun
2005 2005 2005 2004
Restated
US dollar / Imperial
Operating review
Gold
Produced
- kg / oz (000) 1,569 1,569 3,138 2,603
Price received(1)
- R/kg / $/oz 422 424 423 393
Total cash costs
- R/kg / $/oz 278 284 281 254
Total production costs
- R/kg / $/oz 363 366 364 317
Financial review
Gross profit
- R / $ million 154 57 211 142
Gross profit adjusted
for the effect of
unrealised non-
hedge derivatives(2)
- R / $ million 117 112 230 240
Profit attributable
to equity
shareholders
- R / $ million 96 22 118 64
Headline earnings
- R / $ million 112 31 143 85
Headline earnings
adjusted for the
effect of unrealised
non-hedge
derivatives(3)
- R / $ million 92 77 169 147
Capital expenditure
- R / $ million 167 144 311 237
Earnings per
ordinary share
- cents/share
Basic 36 8 45 27
Diluted 36 8 45 26
Headline 42 12 54 36
Headline earnings
adjusted for the
effect of unrealised
non-hedge
derivatives(3)
- cents/share 35 29 64 62
Dividends
- cents/share 25 26
Notes: 1. Price received includes realised non-hedge derivatives.
2. Refer to note 5 of notes for the definition.
3. Refer to note 4 of notes for the definition.
$ represents US dollar, unless otherwise stated.
Rounding of figures may result in computational discrepancies.
Operations at a glance
for the quarter ended 30 June 2005
Price received(1) Production
% %
$/oz Variance(4) oz (000) Variance(4)
Sunrise Dam 483 14 131 -
Great Noligwa 433 (2) 174 (3)
TauTona 439 - 120 (8)
Mponeng 442 - 128 11
Kopanang 437 - 118 (2)
Morila (5) 429 1 67 -
AngloGold Ashanti
Mineracao 417 - 61 7
Siguiri (5) 426 (5) 80 86
Cripple Creek & Victor 359 (12) 71 (12)
Cerro Vanguardia (5) 381 (1) 51 (11)
Sadiola (5) 427 (3) 43 13
Serra Grande (5) 415 - 24 -
Obuasi 424 (5) 102 11
Iduapriem (5) 422 (5) 40 (13)
Geita 351 (6) 165 (14)
Tau Lekoa 438 (2) 68 5
Yatela (5) 428 - 23 -
Bibiani 426 (1) 30 (9)
Navachab 427 (1) 18 (5)
Savuka 441 (1) 33 3
Other 21 (4)
AngloGold Ashanti 422 - 1,569 -
Total cash costs Cash gross profit
(loss)(2)
% %
$/oz Variance(4) $m Variance(4)
Sunrise Dam 246 (12) 30 36
Great Noligwa 270 (3) 25 (4)
TauTona 243 (11) 23 10
Mponeng 278 (16) 21 62
Kopanang 283 (8) 17 21
Morila (5) 173 - 16 (6)
AngloGold Ashanti
Mineracao 161 10 15 (6)
Siguiri (5) 212 (46) 14 250
Cripple Creek & Victor 227 3 12 (25)
Cerro Vanguardia (5) 171 21 12 (20)
Sadiola (5) 256 (10) 7 17
Serra Grande (5) 153 4 7 -
Obuasi 324 (10) 5 (29)
Iduapriem (5) 339 18 4 (20)
Geita 331 55 3 (88)
Tau Lekoa 400 (7) 3 200
Yatela (5) 299 7 3 (25)
Bibiani 296 2 3 (40)
Navachab 362 (12) - (100)
Savuka 461 (17) (1) 67
Other 16 100
AngloGold Ashanti 278 (2) 235 2
Gross profit (loss)
adjusted for the
effect of
unrealised
non-hedge
derivatives(3)
%
$m Variance(4)
Sunrise Dam 21 62
Great Noligwa 21 5
TauTona 9 -
Mponeng 11 267
Kopanang 13 44
Morila (5) 11 (8)
AngloGold Ashanti
Mineracao 11 (15)
Siguiri (5) 9 350
Cripple Creek & Victor 2 (71)
Cerro Vanguardia (5) 7 (30)
Sadiola (5) 4 100
Serra Grande (5) 6 -
Obuasi (5) (400)
Iduapriem (5) 2 -
Geita (9) (190)
Tau Lekoa (2) 60
Yatela (5) 1 (50)
Bibiani (1) -
Navachab (1) -
Savuka (3) 40
Other 10 233
AngloGold Ashanti 117 4
(1) Price received includes realised non-hedge derivatives.
(2) Gross profit (loss) adjusted for the effect of unrealised
non-hedge derivatives plus amortisation of tangible and
intangible assets, less non-cash revenues.
(3) Refer to note 5 of notes for the definition.
(4) Variance June 2005 quarter on March 2005 quarter - increase (decrease).
(5) Attributable.
Rounding of figures may result in computational discrepancies.
Financial and operating review
OVERVIEW OF THE QUARTER
The June quarter has produced a good financial performance, with steady
operational results, in line with those of last quarter. Headline earnings
adjusted for the effect of unrealised non-hedge derivatives increased 19% to
$92m, of which $35m relates to the net positive effect of a statutory tax rate
reduction in Ghana to 25% for three years (and 28% thereafter).Profit
attributable to equity shareholders was $74m higher than that of the prior
quarter, due to the statutory tax rate reductions and as a result of unrealised
non-hedge derivative gains in the second quarter, compared with losses in the
first quarter of the year.
A combination of factors had led to a 4% increase in gross profit adjusted for
the effect of unrealised non- hedge derivatives of $117m. The weakening of the
rand contributed $16m to profitability, while savings arising from improved
efficiencies were partly offset by lower grades and inflationary increases,
with the sustained strength of the oil price continuing to have a negative
impact on open-pit operations.
As noted, production was consistent quarter-on- quarter, due to solid
performances from the Brazilian, Malian and Australian assets and to
significantly improved performances at several other operations, including
Siguiri in Guinea, which posted a 37,000oz production increase following the
first full quarter of operation of the newly commissioned carbon-in-pulp
plant.Obuasi in Ghana also continued on its course of operational improvement,
with production up 11% to 102,000oz and total cash costs down 10% to $324/oz.
An 11% production improvement at Mponeng helped to offset production declines
at several other South African operations, including TauTona and Great Noligwa.
After several excellent quarters, production at Geita in Tanzania decreased 14%
to 165,000oz and total cash costs climbed 55% to $331/oz, as a result of both
lower grades mined and reduced mining contractor efficiencies as the operation
starts the transition to owner-mining.
In Australia, the Sunrise Dam mine enjoyed another record production quarter of
131,000oz, equal to that of the first quarter, with total cash costs improving
11% to A$320/oz ($246/oz).
At the AngloGold Ashanti Mineracao operation in Brazil, gold production
increased 7% to 61,000oz, with total cash costs climbing 10% to $161/oz,
largely as a consequence of the 7% appreciation of the Brazilian real over the
quarter.The Cerro Vanguardia mine in Argentina saw lower tonnage and feed
grade, as planned in the production programme, with total cash costs 21% higher
at $171/oz, mainly due to retroactive January 2005 wage increases paid out
during the second quarter.
Turning to costs, globally increasing mining contractor rates, the strong oil
price and the generally higher price of consumables continue to require that
cost containment remains a key management focus across the group. The stringent
cost savings programmes noted last quarter are beginning to take effect and the
South African region in particular made strides over the quarter in achieving
its cost cutting targets, with local total cash costs at R60,287/kg
constituting a 3% improvement quarter-on- quarter.
Looking ahead, production for the third quarter is estimated to be 1.551Moz at
a total cash cost of $279/oz, assuming the following exchange rates to the US
dollar: R6.60; A$0.76; BRL2.4 and Argentinean peso 2.80.Capital expenditure for
the quarter is estimated at $277m and will be managed in line with
profitability.
After serving more than 30 years with AngloGold Ashanti and the Anglo American
and De Beers companies, CFO Jonathan Best will retire at the end of July 2005.
He is succeeded by Srinivasan Venkatakrishnan, currently deputy CFO, whose
professional history includes a senior position with Deloitte and Touche in
London, as well as the role of Finance Director of Ashanti from 2000, during
which period he led the financial restructuring of the company.
During the quarter under review, the company also indicated that Dr Sam Jonah
will move to a non-executive role on the Board of Directors.AngloGold Ashanti"s
two Chief Operating Officers, Neville Nicolau (Africa) and Roberto Carvalho
Silva (International) will now report directly to CEO Bobby Godsell.
Exploration
Total exploration expenditure during the second quarter amounted to $19m ($12m
expensed and $7m capitalised), versus $15m in the previous quarter. Of the
$19m, $9m ($2m expensed, $7m capitalised) was spent on brownfields exploration
activities at existing mines, while the remaining $10m funded greenfields
exploration in Tanzania, Alaska, China, Mongolia, Colombia, Peru, Russia and
the DRC.
Brownfields
In Ghana at Obuasi, site establishment is in progress for the first two of six
surface diamond holes of the Obuasi Ultra Deeps project. These are planned to
intersect the Obuasi Fissure 3,400m below surface and are expected to be
completed by January 2007.
At Sadiola in Mali, the contract for the pre-feasibility study of the Deep
Sulphides project will be awarded in the third quarter. Testing of the sulphide
potential below the oxide mineralisation at the FE3, FE3 South and FE4
satellite pits over the second quarter did not yield economic intercepts.
At Morila, the third drilling phase has been completed on the underground
Samacline target located 500m west of the current pit at a depth of 400m below
surface. A preliminary scoping study investigating the underground mining
potential of this target is in progress.
At Siguiri in Guinea, drilling results remain encouraging on both the oxide and
sulphide extensions of the existing pits. Reconnaissance drilling on a
previously delineated 2km soil geochemical anomaly at Foulata, which is
situated 45km west of the plant, has delineated a potential oxide Mineral
Resource.
In Tanzania at Geita, diamond drilling of the Geita Hill North East Extension
zone continues to intersect mineralisation down dip and along strike. Drilling
of the Geita Hill footwall zone is underway to confirm potential additional
mineralisation outside the current pit limits.
In Brazil, drilling at various sites at Corrego do Sitio continues to define
sulphide mineralisation below existing oxide Mineral Resources and a
pre-feasibility study and trial mining is planned to commence in 2006.
At Crixas, down-plunge drill testing of the Forquilha Sul and Mina I-West
ore-bodies intersected sub-economic mineralisation, effectively closing off
known ore shoots at depth. Exploration continues to look for further orebodies
down plunge.
In Australia, AngloGold Ashanti has divested its interests in selected
tenements north of Sunrise Dam Gold Mine to Crescent Gold Limited.
Greenfields
In the DRC, drilling re-commenced in mid-April at Adidi and preliminary results
confirm historical grade and tonnage estimates (1.2Moz at 9.9g/t). Preliminary
drilling was also carried out on two additional targets derived from mapping
and geochemical sampling during the first quarter.
In Alaska, results from the initial drilling programme on the Lost Mine South
project in the Pogo area delineated a near-surface, broad, shallow dipping gold
zone with grades in the 1-2g/t range; follow-up drilling is planned for the
third quarter. Two additional high grade targets are planned to be drill tested
in Alaska during the summer.
In South America, greenfields exploration is focussed in Colombia. Diamond
drilling has commenced at the San Carlos project in the Bolivar department and
AngloGold Ashanti is planning to drilltest a further three prospects in
Colombia in the second half of 2005.
Review of the gold market
Whilst the quarter saw a wide range of $30/oz in the spot gold price, and some
interesting changes in investor interest in buying gold, the most significant
moves during this period occurred in the currency markets.
The $/euro exchange rate broke down decisively from the euro strength displayed
in late 2004 and early 2005. Having tested $1.35/EUR twice during the first
quarter of the year, the European currency retreated by almost 10% against the
dollar, and closed the quarter at $1.21/EUR. The weakness of the euro and
resurgence of the US dollar contributed to a shift also in the local currency
and the rand weakened against the US dollar by 8% during this quarter. At its
weakest point of R6.96/$1, the South African currency had lost some 19% against
the US dollar since the rate of R5.65/$1 at which the rand opened in 2005. The
average $/euro exchange rate for the quarter of $1.26/EUR reflected the US
currency being 4% stronger than in the first quarter of 2005. The South African
currency weakened against the US dollar on average by 7% quarter on quarter.
Gold
The statistics of the gold spot price in US dollars reveal little of the
changes in the gold market during the period under review. The average spot
price for the quarter of $427/oz was unchanged from the average price of gold
for the first quarter of 2005. The high of $444/oz was within two dollars of
the high for the first quarter, and the low of $413/oz was similarly close to
the first quarter.
However, the behaviour of the gold price was remarkable for its divergence from
movements in the value of the US dollar during this quarter. See Graph 1 : Euro
/ US$ Exchange Rate & US$ Gold Spot Price: January 2004 - July 2005 Indexed.
The distinctive feature of the gold price rally of the past four years has been
the extent to which the gold price has risen in proportion to the weakening of
the US dollar against the euro, and fallen back when the US dollar has
strengthened against the euro. During this quarter however, as the US dollar
strengthened against the euro, the US dollar spot price of gold actually
finished June some 2% firmer on the quarter. As a direct consequence of the
stronger $/weaker euro, and a stronger spot gold price, the euro price of gold
rose by 12% during this quarter to a high of EUR368/oz.
In effect, traders on the New York Comex elected to remain long gold as the US
currency strengthened. There appeared to be no single justification for this
change of trading strategy on Comex. One important element was that of short
covering on the Comex. Certain investors had gone significantly short gold
early in the quarter when US dollar strength first emerged, taking Comex to a
net long position of only 5.6Moz, the lowest net long position since mid-2003.
When this short move attracted no further selling interest, the market saw
sustained short covering in June notwithstanding the strong US dollar. This
reaction on Comex took the net long gold position on the exchange back up to
almost 18Moz net long at the end of June. In effect, investors were buying US
dollars and buying gold during the same period. See Graph 2 : New York Comex
Gold Net Open Position vs IMM US$ Net Open Position 2001 - 2005.
The correction in the spot gold market was still under-way at the end of the
quarter, when the gold price closed at $434/oz. After the end of the quarter,
the price fell as low as $421/oz, although it has since recovered slightly to
trade at around $425/oz.
The sustained investor interest in gold during this quarter does not
necessarily reflect a complete break between gold price movement and changes in
the value of the US dollar. It is very likely that gold will again respond
positively to renewed US dollar weakness in the future, but off a higher base.
The events of this quarter confirm the fact that the New York Comex remains the
primary market place for investor and speculator activity in gold, and for the
spot pricing of the metal. See Graph 3 : New York Comex Net Open Interest
Position and Gold Price: January 2004-July 2005.
The combination of a strong spot gold price and a weaker rand during the
quarter produced sharply higher rand gold prices and some relief for local gold
producers. From a low of R81,500/kg during the quarter, the local price reached
almost R96,500/kg, while the average of R87,800/kg for the quarter was
R5,000/kg or 6% higher than the average price for the first quarter. During
July, however, a degree of recovery in the rand has taken the local gold price
back below R90,000/kg.
Physical Demand
Physical offtake of gold continued to improve during the first quarter of 2005,
following the healthy performance of demand in 2004.Consumption of gold in
jewellery in the first quarter increased by 17% year-on-year, largely on the
back of growth in Indian demand. Gold jewellery offtake in the developed
markets of the USA, Europe and Japan remained flat to down.Net bullion supply
on the market increased by 23%, driven particularly by higher official sales of
254t during the first quarter and significantly reduced de-hedging by gold
producers, and the market remained effectively in balance.
However, gold offtake in the second quarter suffered from the combination of
higher gold prices in local currencies (on the back of the stronger US dollar)
and seasonally low demand for jewellery.Offtake in India has fallen
particularly during this quarter due to these two factors. Nevertheless, the
major physical gold markets seem to have adjusted to higher gold prices in
general, and demand would be expected to increase again should gold weaken from
the higher spot price levels at which it traded at the end of the second
quarter.
Official Sector
The official sector contributed to better sentiment towards gold during this
quarter with the announcement by the G8 of a debt relief programme for heavily
indebted poor countries which would not be funded by the revaluation or sale of
the gold reserves of the IMF, as had been proposed in recent months. Although
most commentators had expressed doubt that the proposal by UK"s Gordon Brown,
for the funding of debt relief by the sale of IMF gold reserves would succeed,
the announcement removed a residual uncertainty that new sales might cap the
gold market for a time.
The high level of official gold sales during the early months of 2005 has led
to less official selling since then, and assisted the physical market in the
second quarter, when physical demand has fallen.
Currencies
At the end of June, the US dollar had gained 11% against the euro since the
beginning of 2005, most of this during the second quarter of the year.
During July, the US dollar gained further to reach a high of $1.186/EUR, a level
last seen in mid-2004.
During the four years of correction in the US currency against the euro since
2001, the market has seen several US dollar rallies led by economic good news
from the USA, where cyclical strength in the US economy has outweighed the
structural problems in that economy. However, during the second quarter of
2005, the cyclical advantages of sound economic growth and rising interest
rates in the USA were complemented by recognition of major negative factors in
European economies, and the fact that these weaknesses were fundamentally at
odds with a stronger euro. Sentiment towards the euro was also damaged by
political uncertainties raised by the referenda in France and Holland in June,
in which voters rejected the new European Constitution.
The US dollar was the direct beneficiary of the market"s concern about the
European currency, and market fears about the US trade and fiscal deficits
receded during the period under review.
Whilst the dollar has moved largely on good news in the US economy and bad news
in Europe, the stronger US currency has now broken through the technical trend
lines of the correction of the past four years. This technical break has
occurred in respect of the exchange rate both against the euro and against a
trade-weighted currency index.It will be interesting to see what this means for
the US currency during the rest of this year, particularly if cyclically
favourable circumstances in the US should weaken. Market commentary is divided
between institutions that now see a stronger dollar by the end of 2005, and
those who still expect dollar weakness to resume, albeit with more modest
year-end targets.
Whilst South Africa suffered no particular negative economic shift during this
quarter, the local currency lost ground sharply against the US dollar. This
move was driven by the stronger dollar, but also by some public recognition by
leading monetary and political figures of the harm done to sectors of the South
African economy by a strong local currency.
Whilst the further movement of the dollar against the euro will obviously
influence rand exchange rates, the market seems more persuaded now of the
likelihood of a weaker rand going forward.
Hedging
As at 30 June 2005, the net delta hedge position of AngloGold Ashanti was
10.32Moz or 321t valued at the spot gold price at the end of the quarter of
$434.50/oz. This net delta position reflects a decrease of some 400,000oz or
12.5t in the net size of the AngloGold Ashanti hedge compared with the position
at the end of the previous quarter. The net reduction reflects the maturing of
price contracts during the past quarter.
The marked-to-market value of the hedge position as at 30 June 2005 was
negative $1,032m, little changed from the negative value of $1,066m recorded at
the end of March 2005. However, this value of $1,032m was calculated off a
closing spot price $7/oz higher than the closing price at the end of March at
which the previous valuation was calculated. The marked-to-market value of the
hedge at 27 July 2005 at a spot price of $422.80/oz was negative $925.620m. The
price received by the company for the quarter under review was $422/oz,
compared with an average spot price for the period of $427/oz. The company
continues to manage its hedged positions actively, and to reduce overall levels
of pricing commitments in respect of future gold production by the company.
Hedge position
As at 30 June 2005, the group had outstanding the following forward-pricing
commitments against future production. The total net delta tonnage of the hedge
of the company on this date was 10.32Moz or 321t (at 31 March 2005: 10.72Moz or
334t).
The marked-to-market value of all hedge transactions making up the hedge
positions was a negative $1.032bn (negative R6.94bn) as at 30 June 2005 (as at
31 March 2005: $1.066bn or R6.62bn). This value at 30 June 2005 was based on a
gold price of $434.50/oz, exchange rates of R/$6.7240 and A$/$0.7560 and the
prevailing market interest rates and volatilities at that date.
As at 27 July 2005, the marked-to-market value of the hedge book was a negative
$925.620m (negative R6.192bn), based on a gold price of $422.80/oz and exchange
rates of R/$6.69 and A$/$0.7546 and the prevailing market interest rates and
volatilities at the time.
These marked-to-market valuations are not predictive of the future value of the
hedge position, nor of future impact on the revenue of the company. The
valuation represents the cost of buying all hedge contracts at the time of
valuation, at market prices and rates available at the time.
Year 2005 2006 2007
DOLLAR GOLD
Forward contracts Amount (kg) 11,511 16,654 32,993
US$/oz $310 $316 $344
Put options purchased Amount (kg) 4,408 8,592 1,455
US$/oz $333 $345 $292
Put options sold Amount (kg) 5,132 4,354
US$/oz $411 $339
Call options purchased Amount (kg) 11,860 11,211 6,357
US$/oz $329 $333 $344
Call options sold Amount (kg) 18,607 31,224 27,560
US$/oz $360 $381 $374
RAND GOLD
Forward contracts Amount (kg) * 1,218 2,449
Rand per kg R109,988 R97,520
Put options purchased Amount (kg) 1,875
Rand per kg R93,602
Put options sold Amount (kg) 7,620 1,400
Rand per kg R91,907 R88,414
Call options purchased Amount (kg)
Rand per kg
Call options sold Amount (kg) 9,889 4,517 311
Rand per kg R93,515 R102,447 R108,123
A DOLLAR GOLD
Forward contracts Amount (kg) * 1,885 1,555 8,398
A$ per oz A$615 A$762 A$650
Put options purchased Amount (kg)
A$ per oz
Put options sold Amount (kg)
A$ per oz
Call options purchased Amount (kg) 3,110 6,221 3,732
A$ per oz A$724 A$673 A$668
Call options sold Amount (kg)
A$ per oz
** Total net gold: Delta (kg) 14,198 32,959 59,879
Delta (oz) 456,476 1,059,655 1,925,152
Year 2008 2009
DOLLAR GOLD
Forward contracts Amount (kg) 30,076 26,288
US$/oz $365 $380
Put options purchased Amount (kg)
US$/oz
Put options sold Amount (kg) 855 1,882
US$/oz $390 $400
Call options purchased Amount (kg)
US$/oz
Call options sold Amount (kg) 27,516 26,211
US$/oz $380 $407
RAND GOLD
Forward contracts Amount (kg) 933
Rand per kg R116,335
Put options purchased Amount (kg)
Rand per kg
Put options sold Amount (kg)
Rand per kg
Call options purchased Amount (kg)
Rand per kg
Call options sold Amount (kg) 2,986
Rand per kg R202,054
A DOLLAR GOLD
Forward contracts Amount (kg) 3,110 3,390
A$ per oz A$678 A$665
Put options purchased Amount (kg)
A$ per oz
Put options sold Amount (kg)
A$ per oz
Call options purchased Amount (kg) 3,110 1,244
A$ per oz A$680 A$694
Call options sold Amount (kg)
A$ per oz
** Total net gold: Delta (kg) 54,809 50,663
Delta (oz) 1,762,148 1,628,851
Year 2010-2014 Total
DOLLAR GOLD
Forward contracts Amount (kg) 53,566 171,088
US$/oz $402 $366
Put options purchased Amount (kg) 14,455
US$/oz $336
Put options sold Amount (kg) 9,409 21,632
US$/oz $430 $403
Call options purchased Amount (kg) 29,428
US$/oz $334
Call options sold Amount (kg) 76,048 207,166
US$/oz $468 $413
RAND GOLD
Forward contracts Amount (kg) 2,164
Rand per kg R160,520
Put options purchased Amount (kg) 1,875
Rand per kg R93,602
Put options sold Amount (kg) 9,020
Rand per kg R91,365
Call options purchased Amount (kg)
Rand per kg
Call options sold Amount (kg) 5,972 23,675
Rand per kg R223,756 R141,953
A DOLLAR GOLD
Forward contracts Amount (kg) 3,110 17,678
A$ per oz A$689 A$744
Put options purchased Amount (kg)
A$ per oz
Put options sold Amount (kg)
A$ per oz
Call options purchased Amount (kg) 3,110 20,527
A$ per oz A$712 A$688
Call options sold Amount (kg)
A$ per oz
** Total net gold: Delta (kg) 108,569 321,077
Delta (oz) 3,490,569 10,322,850
* Long position.
** The Delta of the hedge position indicated above is the equivalent gold
position that would have the same marked-to-market sensitivity for a small
change in the gold price. This is calculated using the Black-Scholes
option formula with the ruling market prices, interest rates and
volatilities as at 30 June 2005.
Rounding of figures may result in computational discrepancies.
Year 2005 2006 2007
DOLLAR SILVER
Forward contracts Amount (kg)
$ per oz
Put options purchased Amount (kg) 21,772 43,545 43,545
$ per oz $7.11 $7.11 $7.40
Put options sold Amount (kg) 21,772 43,545 43,545
$ per oz $6.02 $6.02 $5.93
Call options purchased Amount (kg)
$ per oz
Call options sold Amount (kg) 21,772 43,545 43,545
$ per oz $8.11 $8.11 $8.40
Year 2008 2009 2010-2014
DOLLAR SILVER
Forward contracts Amount (kg)
$ per oz
Put options purchased Amount (kg) 24,883
$ per oz $7.40
Put options sold Amount (kg) 24,883
$ per oz $5.75
Call options purchased Amount (kg)
$ per oz
Call options sold Amount (kg) 24,883
$ per oz $8.00
Year Total
DOLLAR SILVER
Forward contracts Amount (kg)
$ per oz
Put options purchased Amount (kg) 133,745
$ per oz $7.26
Put options sold Amount (kg) 133,745
$ per oz $5.94
Call options purchased Amount (kg)
$ per oz
Call options sold Amount (kg) 133,745
$ per oz $8.19
The following table indicates the group"s currency hedge position at 30 June
2005
Year 2005 2006 2007
RAND DOLLAR (000)
Forward contracts Amount($) 7,488
US$/R R6.34
Put options purchased Amount($) 60,000
US$/R R6.97
Put options sold Amount($) 60,000
US$/R R6.69
Call options purchased Amount($)
US$/R
Call options sold Amount($) 115,000
US$/R R7.13
A DOLLAR (000)
Forward contracts Amount($) 15,970 39,222
A$/US$ A$0.61 A$0.75
Put options purchased Amount($)
A$/US$
Put options sold Amount($)
A$/US$
Call options purchased Amount($)
A$/US$
Call options sold Amount($) 50,000 20,000
A$/US$ A$0.75 A$0.74
BRAZILIAN REAL (000)
Forward contracts Amount($) 12,000 24,000 4,000
US$/BRL BRL2.94 BRL3.18 BRL3.31
Put options purchased Amount($)
US$/BRL
Put options sold Amount($)
US$/BRL
Call options purchased Amount($)
US$/BRL
Call options sold Amount($) 10,000 20,000
US$/BRL BRL3.03 BRL3.29
Year 2008 2009 2010-2014 Total
RAND DOLLAR (000)
Forward contracts Amount($) 7,488
US$/R R6.34
Put options purchased Amount($) 60,000
US$/R R6.97
Put options sold Amount($) 60,000
US$/R R6.69
Call options purchased Amount($)
US$/R
Call options sold Amount($) 115,000
US$/R R7.13
A DOLLAR (000)
Forward contracts Amount($) 55,192
A$/US$ A$0.70
Put options purchased Amount($)
A$/US$
Put options sold Amount($)
A$/US$
Call options purchased Amount($)
A$/US$
Call options sold Amount($) 70,000
A$/US$ A$0.75
BRAZILIAN REAL (000)
Forward contracts Amount($) 40,000
US$/BRL BRL3.12
Put options purchased Amount($)
US$/BRL
Put options sold Amount($)
US$/BRL
Call options purchased Amount($)
US$/BRL
Call options sold Amount($) 30,000
US$/BRL BRL3.20
Rounding of figures may result in computational discrepancies.
Group income statement
Quarter Quarter
ended ended
June March
2005 2005
SA Rand million Notes Unaudited Unaudited
Revenue 4,563 4,016
Gold income 4,404 3,858
Cost of sales 2 (3,620) (3,415)
Non-hedge derivatives 147 (188)
Gross Profit 931 255
Corporate administration
and other expenses (103) (99)
Market development costs (21) (21)
Exploration costs (78) (60)
Amortisation of
intangible assets - -
Impairment of
tangible assets (45) -
Other operating expenses (38) (23)
Other operating income 8 4
Operating profit (loss) 654 56
Interest receivable 39 54
Other net (expense) income (4) 7
(Loss) profit on disposal
of assets and subsidiaries - (1)
Finance costs and unwinding
of decommissioning
and restoration obligations (159) (148)
Fair value adjustment on option
component of convertible bond 79 115
Fair value gains (losses)
on interest rate swaps 11 (16)
Share of associates profit (loss) 2 1
Profit before taxation 621 68
Taxation 3 62 59
Profit after taxation 683 127
Discontinued operations 7 (69) (51)
614 76
Allocated as follows
Equity Shareholders 566 50
Minority interest 48 26
614 76
Basic earnings per
ordinary share (cents)
Profit from continuing operations 1 240 38
Loss from discontinued operations 1 (26) (19)
Profit 214 19
Diluted earnings per ordinary share
(cents)
Profit from continuing operations 2 240 38
Loss from discontinued operations 2 (26) (19)
Profit 214 19
Dividends 3
- Rm
- cents per share
Quarter Six months Six months
ended ended ended
June June June
2004 2005 2004
Restated Restated
SA Rand million Unaudited Unaudited Unaudited
Revenue 3,754 8,579 7,095
Gold income 3,559 8,261 6,693
Cost of sales (2,925) (7,036) (5,338)
Non-hedge derivatives (379) (40) (384)
Gross Profit 255 1,186 971
Corporate administration
and other expenses (105) (201) (181)
Market development costs (22) (42) (48)
Exploration costs (72) (138) (131)
Amortisation of
intangible assets (54) - (106)
Impairment of
tangible assets - (45) -
Other operating expenses (22) (63) (27)
Other operating income - 12 -
Operating profit (loss) (21) 709 478
Interest receivable 80 93 172
Other net (expense) income (7) 4 (8)
(Loss) profit on disposal
of assets and subsidiaries 7 (1) 27
Finance costs and unwinding
of decommissioning
and restoration obligations (124) (308) (282)
Fair value adjustment on option
component of convertible bond 397 194 248
Fair value gains (losses)
on interest rate swaps (15) (5) (33)
Share of associates profit (loss) (2) 3 (1)
Profit before taxation 316 689 602
Taxation 87 121 (64)
Profit after taxation 403 810 538
Discontinued operations (52) (121) (52)
351 690 486
Allocated as follows
Equity Shareholders 326 616 425
Minority interest 25 74 61
351 690 486
Basic earnings per
ordinary share (cents)
Profit from continuing operations 1 149 278 200
Loss from discontinued operations 1 (21) (46) (22)
Profit 129 233 178
Diluted earnings per ordinary share
(cents)
Profit from continuing operations 2 141 278 192
Loss from discontinued operations 2 (19) (46) (21)
Profit 121 232 171
Dividends 3
- Rm 450 449
- cents per share 170 170
1 Calculated on the basic weighted average number of ordinary shares.
2 Calculated on the diluted weighted average number of ordinary shares.
3 Dividends are translated at actual rates on date of payment.
The current period is only indicative.
Rounding of figures may result in computational discrepancies.
Group income statement
Quarter Quarter
ended ended
June March
2005 2005
US Dollar million Notes Unaudited Unaudited
Revenue 708 668
Gold income 684 642
Cost of sales 2 (565) (568)
Non-hedge derivatives 35 (17)
Gross Profit 154 57
Corporate administration
and other expenses (16) (16)
Market development costs (3) (4)
Exploration costs (12) (10)
Amortisation of intangible assets - -
Impairment of tangible assets (7) -
Other operating expenses (6) (4)
Other operating income 1 1
Operating profit (loss) 111 24
Interest receivable 6 9
Other net (expense) income (1) 1
Profit on disposal of
assets and subsidiaries - -
Finance costs and
unwinding of decommissioning
and restoration obligations (25) (24)
Fair value adjustment on option
component of convertible bond 13 19
Fair value gains (losses)
on interest rate swaps 2 (3)
Share of associates profit (loss) - -
Profit before taxation 107 26
Taxation 3 9 9
Profit after taxation 116 35
Discontinued operations 7 (12) (9)
103 26
Allocated as follows
Equity Shareholders 96 22
Minority interest 7 4
103 26
Basic earnings per
ordinary share (cents)
Profit from continuing
operations 1 41 12
Loss from discontinued
operations 1 (5) (3)
Profit 36 8
Diluted earnings per
ordinary share (cents)
Profit from continuing operations 2 41 12
Loss from discontinued operations 2 (5) (3)
Profit 36 8
Dividends 3
- $m
- cents per share
Quarter Six months Six months
ended ended ended
June June June
2004 2005 2004
Restated Restated
US Dollar million Unaudited Unaudited Unaudited
Revenue 570 1,377 1,065
Gold income 541 1,326 1,005
Cost of sales (445) (1,133) (801)
Non-hedge derivatives (62) 18 (62)
Gross Profit 34 211 142
Corporate administration
and other expenses (16) (32) (27)
Market development costs (3) (7) (7)
Exploration costs (11) (22) (20)
Amortisation of intangible assets (8) - (16)
Impairment of tangible assets - (7) -
Other operating expenses (3) (10) (4)
Other operating income - 2 -
Operating profit (loss) (7) 135 68
Interest receivable 12 15 26
Other net (expense) income (1) - (2)
Profit on disposal of
assets and subsidiaries - - 4
Finance costs and
unwinding of decommissioning
and restoration obligations (19) (50) (42)
Fair value adjustment on option
component of convertible bond 61 32 38
Fair value gains (losses)
on interest rate swaps (2) (1) (5)
Share of associates profit (loss) - - -
Profit before taxation 44 132 87
Taxation 15 18 (7)
Profit after taxation 58 150 80
Discontinued operations (8) (21) (8)
50 130 72
Allocated as follows
Equity Shareholders 48 118 64
Minority interest 2 12 8
50 130 72
Basic earnings per
ordinary share (cents)
Profit from continuing
operations 1 22 52 30
Loss from discontinued
operations 1 (3) (8) (3)
Profit 19 45 27
Diluted earnings per
ordinary share (cents)
Profit from continuing operations 2 21 52 29
Loss from discontinued operations 2 (3) (8) (3)
Profit 18 45 26
Dividends 3
- $m 66 68
- cents per share 25 26
1 Calculated on the basic weighted average number of ordinary shares.
2 Calculated on the diluted weighted average number of ordinary shares.
3 Dividends are translated at actual rates on date of payment.
The current period is only indicative.
Rounding of figures may result in computational discrepancies.
Group balance sheet
As at As at
June March
2005 2005
SA Rand million Notes Unaudited Unaudited
ASSETS
Non-current assets
Tangible assets 37,528 35,634
Intangible assets 2,727 2,569
Investments in associates 254 43
Investment properties 60 51
Other investments 550 190
Inventories 789 677
Derivatives 403 458
Deferred taxation 215 -
Other non-current assets 170 524
42,696 40,146
Current assets
Inventories 2,619 2,365
Trade and other receivables 2,025 1,726
Derivatives 3,053 3,512
Current portion of other
non-current assets 5 5
Cash and cash equivalents 1,835 1,744
9,537 9,352
Non-current assets held for sale 100 -
9,637 9,352
TOTAL ASSETS 52,333 49,498
EQUITY AND LIABILITIES
Equity
Ordinary share capital and premium 9 19,006 18,995
Retained earnings and other reserves 10 1,410 (193)
Shareholders" equity 20,416 18,802
Minority interests 11 401 367
20,817 19,169
Non-current liabilities
Borrowings 10,500 9,934
Provisions 2,729 2,548
Derivatives 2,130 2,191
Deferred taxation 8,231 7,885
23,590 22,558
Current liabilities
Trade and other payables 2,919 2,580
Current portion of borrowings 1,141 889
Derivatives 3,551 3,948
Taxation 315 354
7,926 7,771
Total liabilities 31,516 30,329
TOTAL EQUITY AND LIABILITIES 52,333 49,498
Net asset value - cents per share 7,715 7,108
As at As at
June December
2004 2004
Restated Restated
SA Rand million Unaudited Audited
ASSETS
Non-current assets
Tangible assets 34,079 33,195
Intangible assets 2,524 2,347
Investments in associates 43 43
Investment properties 42 44
Other investments 91 179
Inventories 140 124
Derivatives 832 1,055
Deferred taxation - -
Other non-current assets 351 487
38,102 37,474
Current assets
Inventories 2,371 2,363
Trade and other receivables 1,873 1,747
Derivatives 1,904 2,767
Current portion of other
non-current assets 385 5
Cash and cash equivalents 3,458 1,758
9,991 8,640
Non-current assets held for sale - -
9,991 8,640
TOTAL ASSETS 48,093 46,114
EQUITY AND LIABILITIES
Equity
Ordinary share capital and premium 18,980 18,987
Retained earnings and other reserves 70 (1,200)
Shareholders" equity 19,050 17,787
Minority interests 350 327
19,400 18,114
Non-current liabilities
Borrowings 8,088 7,262
Provisions 2,117 2,339
Derivatives 2,393 3,032
Deferred taxation 8,211 7,542
20,809 20,175
Current liabilities
Trade and other payables 2,940 2,650
Current portion of borrowings 2,125 1,800
Derivatives 2,662 3,007
Taxation 157 368
7,884 7,825
Total liabilities 28,693 28,000
TOTAL EQUITY AND LIABILITIES 48,093 46,114
Net asset value - cents per share 7,205 6,726
1 Calculated on the basic weighted average number of ordinary shares.
2 Calculated on the diluted weighted average number of ordinary shares.
3 Dividends are translated at actual rates on date of payment.
The current period is only indicative.
Rounding of figures may result in computational discrepancies.
Group balance sheet
As at As at
June March
2005 2005
US Dollar million Notes Unaudited Unaudited
ASSETS
Non-current assets
Tangible assets 5,615 5,727
Intangible assets 408 413
Investments in associates 38 7
Investment properties 9 8
Other investments 82 31
Inventories 118 109
Derivatives 60 74
Deferred taxation 32 -
Other non-current assets 26 84
Current assets 6,388 6,453
Inventories 392 380
Trade and other receivables 303 277
Derivatives 457 564
Current portion of other non-current
assets 1 1
Cash and cash equivalents 275 280
1,427 1,502
Non-current assets held for sale 15 -
1,442 1,502
TOTAL ASSETS 7,830 7,955
EQUITY AND LIABILITIES
Equity
Ordinary share capital and premium 9 2,843 3,053
Retained earnings and other reserves 10 211 (31)
Shareholders" equity 3,054 3,022
Minority interests 11 60 59
3,114 3,081
Non-current liabilities
Borrowings 1,571 1,597
Provisions 408 409
Derivatives 319 352
Deferred taxation 1,231 1,267
3,529 3,625
Current liabilities
Trade and other payables 437 415
Current portion of borrowings 171 143
Derivatives 531 634
Taxation 47 57
1,186 1,249
Total liabilities 4,715 4,874
TOTAL EQUITY AND LIABILITIES 7,830 7,955
Net asset value - cents per share 1,154 1,142
As at As at
June December
2004 2004
Restated Restated
US Dollar million Unaudited Audited
ASSETS
Non-current assets
Tangible assets 5,473 5,880
Intangible assets 405 416
Investments in associates 7 8
Investment properties 7 8
Other investments 14 32
Inventories 22 22
Derivatives 134 187
Deferred taxation - -
Other non-current assets 56 86
Current assets 6,118 6,639
Inventories 381 419
Trade and other receivables 301 309
Derivatives 306 490
Current portion of other non-current assets 62 1
Cash and cash equivalents 555 312
1,604 1,531
Non-current assets held for sale - -
1,604 1,531
TOTAL ASSETS 7,723 8,170
EQUITY AND LIABILITIES
Equity
Ordinary share capital and premium 3,048 3,364
Retained earnings and other reserves 12 (213)
Shareholders" equity 3,060 3,151
Minority interests 56 58
3,116 3,209
Non-current liabilities
Borrowings 1,299 1,286
Provisions 340 415
Derivatives 384 537
Deferred taxation 1,319 1,336
3,342 3,574
Current liabilities
Trade and other payables 471 470
Current portion of borrowings 341 319
Derivatives 428 533
Taxation 25 65
1,265 1,387
Total liabilities 4,607 4,961
TOTAL EQUITY AND LIABILITIES 7,723 8,170
Net asset value - cents per share 1,157 1,191
Rounding of figures may result in computational discrepancies.
Group cash flow statement
Quarter Quarter Quarter
ended ended ended
June March June
2005 2005 2004
Restated
SA Rand million Unaudited Unaudited Unaudited
Cash flows from operating
activities
Cash generated from operations 1,191 825 787
Cash utilised by discontinued
operations (62) (51) (6)
Environmental, rehabilitation
and other expenditure (16) (12) (13)
Taxation paid (34) (61) (56)
Net cash inflow from operating
activities 1,078 701 712
Cash flows from investing
activities
Capital expenditure (1,068) (864) (1,012)
Proceeds from disposal of
tangible assets - - 9
Investments acquired (89) - (2)
Acquisition of subsidiary net
of cash - - (802)
Net loans (advanced) repaid (29) (1) 74
Utilised in hedge restructure - (415) -
Net cash outflow from
investing activities (1,186) (1,280) (1,733)
Cash flows from financing
activities
Proceeds from issue of share
capital 10 8 1
Share issue expenses - - (1)
Proceeds from borrowings 545 2,568 60
Repayment of borrowings (407) (1,488) (1,379)
Interest received 27 45 61
Finance costs (68) (221) (78)
Dividends paid (31) (488) (59)
Net cash inflow (outflow) from
financing activities 77 424 (1,395)
Net (decrease) increase in
cash and cash equivalents (31) (155) (2,416)
Translation 123 141 6
Opening cash and cash
equivalents 1,744 1,758 5,868
Closing cash and cash
equivalents 1,835 1,744 3,458
Cash generated from operations
Profit before taxation 621 68 316
Adjusted for:
Non-cash movements 126 (32) (39)
Movement on non-hedge
derivatives (185) 427 386
Deferred stripping costs 17 8 (40)
Amortisation of tangible assets 787 732 600
Amortisation of intangible
assets 3 3 54
Impairment of tangible assets 45 - -
Interest receivable (39) (54) (81)
Loss (profit) on disposal of
assets and subsidiaries - 1 (7)
Finance costs and unwinding of
decommissioning and
restoration obligations 159 148 124
Fair value adjustment on
option component of
convertible bond (79) (115) (397)
Movement in working capital (267) (361) (130)
1,191 825 787
Movement in working capital
(Increase) decrease in
inventories (339) (567) (157)
Increase in trade and other
receivables (268) - (168)
Increase (decrease) in trade
and other payables 340 206 195
(267) (361) (130)
Six months Six months
ended ended
June June
2005 2004
Restated
SA Rand million Unaudited Unaudited
Cash flows from operating activities
Cash generated from operations 2,016 1,323
Cash utilised by discontinued operations (113) 7
Environmental, rehabilitation and other
expenditure (29) (30)
Taxation paid (95) (161)
Net cash inflow from operating activities 1,779 1,139
Cash flows from investing activities
Capital expenditure (1,932) (1,579)
Proceeds from disposal of tangible assets - 35
Investments acquired (89) (2)
Acquisition of subsidiary net of cash - (802)
Net loans (advanced) repaid (31) 76
Utilised in hedge restructure (415) -
Net cash outflow from investing activities (2,466) (2,272)
Cash flows from financing activities
Proceeds from issue of share capital 18 12
Share issue expenses - (1)
Proceeds from borrowings 3,113 6,797
Repayment of borrowings (1,895) (4,571)
Interest received 72 133
Finance costs (288) (253)
Dividends paid (519) (817)
Net cash inflow (outflow) from financing
activities 501 1,300
Net (decrease) increase in cash and cash
equivalents (186) 167
Translation 264 (76)
Opening cash and cash equivalents 1,758 3,367
Closing cash and cash equivalents 1,835 3,458
Cash generated from operations
Profit before taxation 689 602
Adjusted for:
Non-cash movements 95 (8)
Movement on non-hedge derivatives 242 568
Deferred stripping costs 25 (114)
Amortisation of tangible assets 1,519 1,046
Amortisation of intangible assets 6 106
Impairment of tangible assets 45 -
Interest receivable (93) (172)
Loss (profit) on disposal of assets and
subsidiaries 1 (27)
Finance costs and unwinding of
decommissioning and
restoration obligations 308 282
Fair value adjustment on option component of
convertible (194) (248)
Movement in working capital (628) (712)
2,016 1,323
Movement in working capital
(Increase) decrease in inventories (906) 39
Increase in trade and other receivables (267) (225)
Increase (decrease) in trade and other
payables 546 (526)
(628) (712)
Rounding of figures may result in computational discrepancies
Group cash flow statement
Quarter Quarter Quarter
ended ended ended
June March June
2005 2005 2004
Restated
US Dollar million Unaudited Unaudited Unaudited
Cash flows from operating
activities
Cash generated from operations 193 136 102
Cash utilised by discontinued
operations (11) (8) (1)
Environmental, rehabilitation
and other expenditure (3) (2) (2)
Taxation paid (5) (10) (9)
Net cash inflow from operating
activities 175 116 90
Cash flows from investing
activities
Capital expenditure (167) (144) (153)
Proceeds from disposal of
tangible assets - - 1
Investments acquired (15) - -
Acquisition of subsidiary net
of cash - - (126)
Net loans (advanced) repaid (5) - 11
Utilised in hedge restructure - (69) -
Net cash outflow from investing
activities (186) (213) (267)
Cash flows from financing
activities
Proceeds from issue of share
capital 2 1 -
Share issue expenses - - -
Proceeds from borrowings 43 458 22
Repayment of borrowings (27) (278) (213)
Interest received 4 7 9
Finance costs (10) (37) (12)
Dividends paid (5) (82) (9)
Net cash inflow (outflow) from
financing activities 7 69 (203)
Net (decrease) increase in cash
and cash equivalents (4) (28) (380)
Translation (2) (4) 1
Opening cash and cash
equivalents 280 312 934
Closing cash and cash
equivalents 275 280 555
Cash generated from operations
Profit before taxation 107 26 44
Adjusted for:
Non-cash movements 20 (5) (5)
Movement on non-hedge
derivatives (38) 57 64
Deferred stripping costs 2 1 (6)
Amortisation of tangible assets 123 122 91
Amortisation of intangible
assets - - 8
Impairment of tangible assets 7 - -
Interest receivable (6) (9) (12)
Profit on disposal of assets
and subsidiaries - - -
Finance costs and unwinding of
decommissioning and
restoration obligations 25 24 19
Fair value adjustment on option
component of convertible bond (13) (19) (61)
Movement in working capital (33) (61) (40)
193 136 102
Movement in working capital
Increase in inventories (17) (50) (29)
(Increase) decrease in trade
and other receivables (20) 29 (29)
Increase (decrease) in trade
and other payables 4 (40) 18
(33) (61) (40)
Six months Six months
ended ended
June June
2005 2004
Restated
US Dollar million Unaudited Unaudited
Cash flows from operating activities
Cash generated from operations 329 220
Cash utilised by discontinued operations (19) 1
Environmental, rehabilitation and other
expenditure (5) (5)
Taxation paid (15) (24)
Net cash inflow from operating activities 290 192
Cash flows from investing activities
Capital expenditure (311) (237)
Proceeds from disposal of tangible assets - 5
Investments acquired (15) -
Acquisition of subsidiary net of cash - (126)
Net loans (advanced) repaid (5) 11
Utilised in hedge restructure (69) -
Net cash outflow from investing activities (399) (347)
Cash flows from financing activities
Proceeds from issue of share capital 3 2
Share issue expenses - -
Proceeds from borrowings 501 1,019
Repayment of borrowings (305) (685)
Interest received 12 20
Finance costs (47) (38)
Dividends paid (87) (122)
Net cash inflow (outflow) from financing
activities 77 196
Net (decrease) increase in cash and cash
equivalents (32) 41
Translation (5) 9
Opening cash and cash equivalents 312 505
Closing cash and cash equivalents 275 555
Cash generated from operations
Profit before taxation 132 87
Adjusted for:
Non-cash movements 15 2
Movement on non-hedge derivatives 18 90
Deferred stripping costs 4 (17)
Amortisation of tangible assets 244 157
Amortisation of intangible assets 1 16
Impairment of tangible assets 7 -
Interest receivable (15) (26)
Profit on disposal of assets and subsidiaries - (4)
Finance costs and unwinding of
decommissioning and
restoration obligations 50 42
Fair value adjustment on option component of
convertible (32) (39)
Movement in working capital (94) (88)
329 220
Movement in working capital
Increase in inventories (67) (16)
(Increase) decrease in trade and other
receivables 9 (52)
Increase (decrease) in trade and other
payables (36) (20)
(94) (88)
Rounding of figures may result in computational discrepancies
Statement of recognised income and expense
for the six months ended 30 June 2005
Six months Six months
ended ended
June June
2005 2004
Unaudited Unaudited
SA Rand million
Actuarial gains on defined benefit retirement
plans 42 -
Net (gain) loss on cash flow hedges removed from
equity and reported in income (91) 446
Net (loss) gain on cash flow hedges (116) 645
Net (loss) gain on available for sale financial
assets (2) 5
Deferred taxation on items above 182 (279)
Net exchange translation differences (159) 91
Net (expense) income recognised directly in equity (144) 908
Profit for the period 690 486
Total recognised income and expense for the period 546 1,394
Attributable to:
Equity shareholders 429 1,329
Minority interest 117 65
546 1,394
US Dollar million
Actuarial gains on defined benefit retirement
plans 7 -
Net (gain) loss on cash flow hedges removed from
equity and reported in income (11) 78
Net (loss) gain on cash flow hedges (17) 104
Net (loss) gain on available for sale financial
assets (2) 1
Deferred taxation on items above 26 (41)
Net exchange translation differences (4) (13)
Net (expense) income recognised directly in equity (1) 129
Profit for the period 130 72
Total recognised income and expense for the period 129 201
Attributable to:
Equity shareholders 120 187
Minority interest 9 14
129 201
Rounding of figures may result in computational discrepancies.
Notes
for the quarter and six months ended 30 June 2005
1. Basis of preparation
The financial statements have been prepared in accordance with the historic
cost convention except for certain financial instruments which are stated at
fair value. The group"s accounting policies used in the preparation of these
financial statements are consistent with those used in the annual financial
statements for the year ended 31 December 2004 except for the new and revised
International Financial Reporting Standards (IFRS) statements which are
effective 1 January 2005, where applicable.
The option to account for actuarial gains and losses through equity reserves
under IAS19 revised has been adopted. The financial effects of the adoption on
prior periods are disclosed in Note 13.
The financial statements of AngloGold Ashanti have been prepared in compliance
with IAS34, in compliance with the JSE Listings Requirements and in the manner
required by the South African Companies Act, 1973 for the preparation of
financial information of the group for the quarter and six months ended 30 June
2005.
Where the preparation or classification of an item has been amended,
comparative information has been reclassified to ensure comparability with the
current period. The amendments have been made to provide the users of the
financial statements with additional information. Refer to Note 7, discontinued
operations, Note 13, financial effects of IAS19 revised and Note 19,
convertible bonds.
2. Cost of sales
Quarter ended Six months ended
Jun Mar Jun Jun
2005 2005 2005 2004
Restated
Unaudited Unaudited Unaudited Unaudited
SA Rand million
Cash operating costs 2,744 2,650 5,395 4,279
Other cash costs 92 100 192 137
Total cash costs 2,836 2,750 5,587 4,416
Retrenchment costs 31 14 46 30
Rehabilitation & other
non-cash costs 49 45 94 57
Production costs 2,916 2,809 5,727 4,503
Amortisation of
tangible assets 787 732 1,519 1,046
Amortisation of
intangible assets 3 3 6 -
Total production costs 3,706 3,544 7,252 5,549
Inventory change (86) (129) (216) (211)
3,620 3,415 7,036 5,338
Quarter ended Six months ended
Jun Mar Jun Jun
2005 2005 2005 2004
Restated
Unaudited Unaudited Unaudited Unaudited
US Dollar million
Cash operating costs 428 441 870 642
Other cash costs 14 17 31 21
Total cash costs 443 458 901 663
Retrenchment costs 5 2 7 5
Rehabilitation & other
non-cash costs 8 7 15 9
Production costs 456 467 923 677
Amortisation of
tangible assets 123 122 244 157
Amortisation of
intangible assets - - 1 -
Total production costs 578 590 1,168 833
Inventory change (14) (21) (35) (33)
565 568 1,133 801
3. Taxation
Quarter ended Six months ended
Jun Mar Jun Jun
2005 2005 2005 2004
Restated
Unaudited Unaudited Unaudited Unaudited
SA Rand million
Current taxation 11 (38) (27) (134)
Deferred taxation (158) (34) (191) (159)
Deferred taxation on
change in tax rate 314 72 386 -
Deferred taxation on
unrealised non-
hedge derivatives (105) 59 (47) 229
62 59 121 (64)
Quarter ended Six months ended
Jun Mar Jun Jun
2005 2005 2005 2004
Restated
Unaudited Unaudited Unaudited Unaudited
US Dollar million
Current taxation 1 (6) (5) (20)
Deferred taxation (22) (6) (28) (24)
Deferred taxation on
change in tax rate 47 12 59 -
Deferred taxation on
unrealised non-
hedge derivatives (16) 9 (7) 37
9 9 18 (7)
Rounding of figures may result in computational discrepancies
4. Headline earnings and headline earnings adjusted for the effect
of unrealised non-hedge derivatives
Quarter ended Six months ended
Jun Mar Jun Jun
2005 2005 2005 2004
Restated
Unaudited Unaudited Unaudited Unaudited
SA Rand million
Profit attributable to
equity shareholders
has been adjusted by
the following to
arrive at headline
earnings:
Profit attributable to
equity shareholders 566 50 616 425
Amortisation of
intangible assets - - - 106
Impairment of tangible
assets 45 - 45 -
Loss (profit) on
disposal of assets and
subsidiaries - 1 1 (27)
Taxation on items above (15) - (15) 7
Net loss from
discontinued operations
(note 7) 69 51 121 52
Headline earnings 665 102 767 563
Unrealised non-hedge
derivatives (166) 421 255 622
Deferred taxation on
unrealised non-
hedge derivatives (note 3) 105 (59) 47 (229)
Headline earnings
adjusted for the
effect of unrealised
non-hedge
derivatives (2) 604 464 1,069 956
Cents per share (1)
Headline earnings 251 39 290 236
Headline earnings
adjusted for the
effect of unrealised
non-hedge
derivatives 228 175 404 401
Quarter ended Six months ended
Jun Mar Jun Jun
2005 2005 2005 2004
Restated
Unaudited Unaudited Unaudited Unaudited
US Dollar million
Profit attributable to
equity shareholders
has been adjusted by
the following to
arrive at headline
earnings:
Profit attributable to
equity shareholders 96 22 118 64
Amortisation of
intangible assets - - - 16
Impairment of tangible
assets 7 - 7 -
Loss (profit) on
disposal of assets and
subsidiaries - - - (4)
Taxation on items above (2) - (2) 1
Net loss from
discontinued operations
(note 7) 12 9 21 8
Headline earnings 112 31 143 85
Unrealised non-hedge
derivatives (37) 55 19 98
Deferred taxation on
unrealised non-
hedge derivatives (note 3) 16 (9) 7 (37)
Headline earnings
adjusted for the
effect of unrealised
non-hedge
derivatives (2) 92 77 169 147
Cents per share (1)
Headline earnings 42 12 54 36
Headline earnings
adjusted for the
effect of unrealised
non-hedge
derivatives 35 29 64 62
(1) Calculated on the basic weighted average number of ordinary shares.
(2) Non-hedge derivatives in the income statement comprise the change in fair
value of all non-hedge derivatives as follows:
- Open positions: The change in fair value from the previous reporting date
or date of recognition (if later) through to the current reporting date;
and
- Settled positions: The change in fair value from the previous reporting
date or date of recognition (if later) through to the date of settlement.
Headline earnings adjusted for the effect of unrealised non-hedge derivatives,
is intended to illustrate earnings after adjusting for:
- The unrealised fair value change in contracts that are still open at the
reporting date, as well as, the unwinding of the historic marked-to-market
value of the positions settled in the period; and
- Investment in hedge restructure transaction: During the hedge restructure of
the quarter ended 31 December 2004 and the quarter ended 31 March 2005, $83m
and $69m in cash was injected into the hedge book in these quarters to
increase the value of long- dated contracts. The entire investment in
short-dated derivatives (certain of which have now matured) and investment
in long-dated derivatives (all of which have not yet matured), for the
purposes of the adjustment to earnings, will only be taken into account when
the realised portion of long-dated non-hedge derivatives are settled, and
not when the short-term contracts are settled.
5. Gross profit and gross profit adjusted for the effect of unrealised
non-hedge derivatives
Quarter ended Six months ended
Jun Mar Jun Jun
2005 2005 2005 2004
Restated
Unaudited Unaudited Unaudited Unaudited
SA Rand million
Reconciliation of gross
profit to gross
profit adjusted for the
effect of
unrealised non-hedge
derivatives:
Gross profit 931 255 1,186 971
Unrealised non-hedge
derivatives (166) 421 255 622
Gross profit adjusted
for the effect of
unrealised non-hedge
derivatives (1) 765 676 1,441 1,593
Quarter ended Six months ended
Jun Mar Jun Jun
2005 2005 2005 2004
Restated
Unaudited Unaudited Unaudited Unaudited
US Dollar million
Reconciliation of gross
profit to gross
profit adjusted for the
effect of
unrealised non-hedge
derivatives:
Gross profit 154 57 211 142
Unrealised non-hedge
derivatives (37) 55 19 98
Gross profit adjusted
for the effect of
unrealised non-hedge
derivatives (1) 117 112 230 240
(1) Non-hedge derivatives in the income statement comprise the change in fair
value of all non-hedge derivatives as follows:
- Open positions: The change in fair value from the previous reporting date
or date of recognition (if later) through to the current reporting date;
and
- Settled positions: The change in fair value from the previous reporting
date or date of recognition (if later) through to the date of settlement.
Gross profit adjusted for the effect of unrealised non-hedge derivatives, is
intended to illustrate earnings after adjusting for:
- The unrealised fair value change in contracts that are still open at the
reporting date, as well as, the unwinding of the historic marked-to-market
value of the positions settled in the period; and
- Investment in hedge restructure transaction: During the hedge restructure
of the quarter ended 31 December 2004 and the quarter ended 31 March 2005,
$83m and $69m in cash was injected into the hedge book in these quarters to
increase the value of long- dated contracts. The entire investment in
short-dated derivatives (certain of which have now matured) and investment
in long-dated derivatives (all of which have not yet matured), for the
purposes of the adjustment to earnings, will only be taken into account
when the realised portion of long-dated non-hedge derivatives are settled,
and not when the short-term contracts are settled.
Rounding of figures may result in computational discrepancies
6. Capital commitments
Jun Mar Jun Dec
2005 2005 2004 2004
SA Rand million
Orders placed and outstanding on capital
contracts at the prevailing rate of
exchange 1,312 1,108 885 835
Jun Mar Jun Dec
2005 2005 2004 2004
US Dollar million
Orders placed and outstanding on capital
contracts at the prevailing rate of
exchange 196 178 142 148
7. Discontinued operations
The Ergo surface dump reclamation, which forms part of the South African
operations has been discontinued as the operation has reached the end of its
useful life. The results of Ergo for the period are presented below:
Quarter ended Six months ended
Jun Mar Jun Jun
2005 2005 2005 2004
Restated
Unaudited Unaudited Unaudited Unaudited
SA Rand million
Gold income 10 85 95 309
Retrenchment,
rehabilitation and
other costs (261) (136) (398) (334)
Non-hedge derivatives - - - (28)
Gross loss (251) (51) (303) (53)
Impairment loss reversed 115 - 115 -
Loss before taxation
from discontinued
operations (136) (51) (188) (53)
Deferred taxation 67 - 67 1
Net loss attributable
to discontinued
operations (69) (51) (121) (52)
Quarter ended Six months ended
Jun Mar Jun Jun
2005 2005 2005 2004
Restated
Unaudited Unaudited Unaudited Unaudited
US Dollar million
Gold income 2 14 16 46
Retrenchment,
rehabilitation and
other costs (41) (23) (64) (50)
Non-hedge derivatives - - - (4)
Gross loss (39) (9) (48) (8)
Impairment loss reversed 17 - 17 -
Loss before taxation
from discontinued
operations (22) (9) (31) (8)
Deferred taxation 10 - 10 -
Net loss attributable
to discontinued
operations (12) (9) (21) (8)
8. Shares
Quarter ended
Jun Mar Jun
2005 2005 2004
Authorised shares:
Ordinary shares of 25 SA cents
each 400,000,000 400,000,000 400,000,000
A redeemable preference shares
of 50 SA cents each 2,000,000 2,000,000 2,000,000
B redeemable preference shares
of 1 SA cent each 5,000,000 5,000,000 5,000,000
Issued shares:
Ordinary shares of 25 SA cents
each 264,611,494 264,527,794 264,403,394
A redeemable preference shares 2,000,000 2,000,000 2,000,000
B redeemable preference shares 778,896 778,896 778,896
Weighted average number of
ordinary shares for the period
Basic ordinary shares 264,556,116 264,488,624 253,046,275
Diluted number of ordinary
shares 265,101,415 265,024,329 268,430,890
Six months ended
Jun Jun
2005 2004
Authorised shares:
Ordinary shares of 25 SA cents
each 400,000,000 400,000,000
A redeemable preference shares
of 50 SA cents each 2,000,000 2,000,000
B redeemable preference shares
of 1 SA cent each 5,000,000 5,000,000
Issued shares:
Ordinary shares of 25 SA cents
each 264,611,494 264,403,394
A redeemable preference shares 2,000,000 2,000,000
B redeemable preference shares 778,896 778,896
Weighted average number of
ordinary shares for the period
Basic ordinary shares 264,522,557 238,129,583
Diluted number of ordinary
shares 265,069,987 248,695,939
During the quarter, 83,700 ordinary shares were allotted in terms of the
AngloGold Share Incentive Scheme. All the preference shares are held by a
wholly-owned subsidiary company.
9. Ordinary share capital and premium
As at As at
Jun Jun Jun Jun
2005 2004 2005 2004
Unaudited Unaudited Unaudited Unaudited
SA Rand million US Dollar million
Balance at December 18,987 9,668 3,364 1,450
Ordinary shares
issued 19 9,312 3 1,368
Translation - - (524) 230
Balance at June 19,006 18,980 2,843 3,048
Rounding of figures may result in computational discrepancies
10. Retained earnings and other reserves
Retained Non- Foreign
earnings distributable currency
reserves translation
reserve
SA Rand million
Balance at December 2003 as
previously reported 3,848 138 (755)
Change in accounting policy for
defined benefit retirement plans - - -
As restated 3,848 138 (755)
Net loss on cash flow hedges
removed from equity
and reported in income - - -
Net gain on cash flow hedges - - -
Deferred taxation on cash flow
hedges - - -
Net gain on available for sale
financial assets - - -
Exchange translation differences - - (1,583)
Profit attributable to equity
shareholders 425 - -
Dividends paid (748) - -
Balance at June 2004 (restated) 3,525 138 (2,338)
Balance at December 2004
(restated) 3,379 138 (3,552)
Change in accounting policy for
defined benefit retirement plans - - -
As restated 3,379 138 (3,552)
Actuarial gain on defined
benefit retirement plans - - -
Deferred taxation on defined
benefit retirement plans - - -
Net gain on cash flow hedges
removed from equity
and reported in income - - -
Net loss on cash flow hedges - - -
Deferred taxation on cash flow
hedges - - -
Net loss on available for sale
financial assets - - -
Exchange translation differences - - 2,656
Profit attributable to equity
shareholders 616 - -
Dividends paid (476) - -
Balance at June 2005 3,519 138 (896)
US Dollar million (1)
Balance at December 2003 as
previously reported 356 21 108
Change in accounting policy for
defined benefit retirement plans - - -
As restated 356 21 108
Net loss on cash flow hedges
removed from equity and reported in
income - - -
Net gain on cash flow hedges - - -
Deferred taxation on cash flow
hedges - - -
Net gain on available for sale
financial assets - - -
Exchange translation differences - 1 (225)
Profit attributable to equity
shareholders 64 - -
Dividends paid (111) - -
Balance at June 2004 (restated) 309 22 (117)
Balance at December 2004
(restated) 286 24 (317)
Change in accounting policy for
defined
benefit retirement plans - - -
As restated 286 24 (317)
Actuarial gain on defined
benefit retirement plans - - -
Deferred taxation on defined
benefit retirement plans - - -
Net gain on cash flow hedges
removed from
equity and reported in income - - -
Net loss on cash flow hedges - - -
Deferred taxation on cash flow
hedges - - -
Net loss on available for sale
financial assets - - -
Exchange translation differences - (3) 385
Profit attributable to equity
shareholders 118 - -
Dividends paid (80) - -
Balance at June 2005 324 21 68
Other
Comprehen-
sive
income Total
SA Rand million
Balance at December 2003 as previously reported (2,047) 1,184
Change in accounting policy for defined
benefit retirement plans (112) (112)
As restated (2,159) 1,072
Net loss on cash flow hedges removed from equity
and reported in income 444 444
Net gain on cash flow hedges 642 642
Deferred taxation on cash flow hedges (279) (279)
Net gain on available for sale financial assets 5 5
Exchange translation differences 92 (1,491)
Profit attributable to equity shareholders - 425
Dividends paid - (748)
Balance at June 2004 (restated) (1,255) 70
Balance at December 2004 (restated) (1,040) (1,075)
Change in accounting policy for defined
benefit retirement plans (125) (125)
As restated (1,165) (1,200)
Actuarial gain on defined benefit retirement plans 42 42
Deferred taxation on defined benefit retirement plans (14) (14)
Net gain on cash flow hedges removed from equity
and reported in income (93) (93)
Net loss on cash flow hedges (116) (116)
Deferred taxation on cash flow hedges 196 196
Net loss on available for sale financial assets (2) (2)
Exchange translation differences (199) 2,455
Profit attributable to equity shareholders - 616
Dividends paid - (476)
Balance at June 2005 (1,351) 1,410
US Dollar million (1)
Balance at December 2003 as previously
reported (307) 178
Change in accounting policy for defined
benefit retirement plans (18) (18)
As restated (325) 160
Net loss on cash flow hedges removed
from equity and reported in income 78 78
Net gain on cash flow hedges 103 103
Deferred taxation on cash flow hedges (41) (41)
Net gain on available for sale financial assets 1 1
Exchange translation differences (18) (242)
Profit attributable to equity shareholders - 64
Dividends paid - (111)
Balance at June 2004 (restated) (202) 12
Balance at December 2004 (restated) (184) (191)
Change in accounting policy for defined
benefit retirement plans (22) (22)
As restated (206) (213)
Actuarial gain on defined benefit retirement plans 7 7
Deferred taxation on defined benefit retirement plans (2) (2)
Net gain on cash flow hedges removed from
equity and reported in income (11) (11)
Net loss on cash flow hedges (17) (17)
Deferred taxation on cash flow hedges 28 28
Net loss on available for sale financial assets (2) (2)
Exchange translation differences 1 383
Profit attributable to equity shareholders - 118
Dividends paid - (80)
Balance at June 2005 (202) 211
(1) The 2004 opening balances and comparative amounts have been restated
in terms of IAS21 revised.
Rounding of figures may result in computational discrepancies
11. Minority interests
As at As at As at As at
Jun Jun Jun Jun
2005 2004 2005 2004
Unaudited Unaudited Unaudited Unaudited
SA Rand million US Dollar million
Balance at December 327 354 58 53
Attributable profit 74 61 12 8
Dividends paid (43) (69) (7) (11)
Net loss on cash flow hedges
removed from equity and
reported in income 2 2 - -
Net loss on cash flow hedges - 3 - 1
Exchange translation
differences 41 (1) (3) 5
Balance at June 401 350 60 56
12. Exchange rates
Jun Mar Jun Dec
2005 2005 2004 2004
Rand/US dollar average for the period 6.21 6.01 6.67 6.44
Rand/US dollar average for the quarter 6.41 6.01 6.59 6.05
Rand/US dollar closing 6.68 6.22 6.23 5.65
Rand/Australian dollar average for the
period 4.80 4.67 4.94 4.82
Rand/Australian dollar average for the
quarter 4.93 4.67 4.70 4.58
Rand/Australian dollar closing 5.06 4.81 4.33 4.42
13. Financial effects of IAS19 revised
The cumulative effect of accounting for actuarial gains and losses through
equity reserves for the previous reported periods are as follows:
SA Rand million
As at As at As at
Mar Jun Dec
2005 2004 2004
Unaudited Unaudited Audited
Non-current assets
Other non-current assets
As previously reported 637 520 601
Actuarial gain related to the
pension plan asset
recognised directly in equity (113) (169) (114)
Translation - - -
As restated 524 351 487
Non-current liabilities
Provisions
As previously reported 2,473 2,117 2,265
Actuarial gain related to the
post retirement
medical liability recognised
directly in equity 74 - 74
Translation 1 - -
As restated 2,548 2,117 2,339
Non-current liabilities
Deferred taxation
As previously reported 7,948 8,268 7,605
Actuarial gain related to the
retirement plans
recognised directly in equity (63) (57) (63)
Translation - - -
As restated 7,885 8,211 7,542
US Dollar million
As at As at As at
March June Dec
2005 2004 2004
Unaudited Unaudited Audited
Non-current assets
Other non-current assets
As previously reported 102 83 106
Actuarial gain related to the
pension plan asset
recognised directly in equity (20) (25) (16)
Translation 2 (2) (4)
As restated 84 56 86
Non-current liabilities
Provisions
As previously reported 397 340 402
Actuarial gain related to the
post retirement
medical liability recognised
directly in equity 13 - 11
Translation (1) - 2
As restated 409 340 415
Non-current liabilities
Deferred taxation
As previously reported 1,277 1,328 1,347
Actuarial gain related to the
retirement plans
recognised directly in equity (11) (9) (9)
Translation 1 - (2)
As restated 1,267 1,319 1,336
The financial effects of the IAS19 revised option for the current quarter
relating to the pension plan asset and the post-retirement medical liability as
well as the effects on the equity reserves for the current and the prior
periods are disclosed in the Statement of recognised income and expense.
Rounding if figures may result in computational discrepancies
14. Contingent liabilities
AngloGold Ashanti acts as ultimate guarantor in respect of sureties provided to
bankers and other parties by its subsidiaries in respect of certain loans and
commitments. At 30 June 2005, the aggregate contingent liability is
approximately $88m. Discussions are continuing in respect of the class action
being brought against the former Ashanti Goldfields and it is anticipated that
the final outcome of this claim will have no material effect on the company.
15. Attributable interest
Although AngloGold Ashanti holds a 66.7% interest in Cripple Creek & Victor
Gold Mining Company Limited, it is currently entitled to receive 100% of the
cash flows from the operation until the loan, extended to the joint venture by
AngloGold Ashanti USA Inc., is repaid.
16. Announcements
16.1 On 15 April 2005, the South African Department of Water Affairs and
Forestry issued a directive ordering three mining groups, DRDGold, Harmony
and AngloGold Ashanti to share equally the costs of pumping water at some
shafts of DRDGold"s North West operations in South Africa. This follows an
interdict application made by AngloGold Ashanti in response to DRDGold"s
threat to cease funding the pumping of water at these shafts, after placing
Buffelsfontein, its subsidiary that operated the North West operations, into
liquidation on 22 March 2005. The aggregate monthly cost of pumping is
estimated at R8m ($1m).
16.2 On 28 April 2005, the company announced that agreement had been reached
with Trans-Siberian Gold plc (TSG) on revised terms for the second
subscription of shares in TSG, and a revised subscription price of GBP1.30 per
share, compared to GBP1.494 per share agreed between the parties on 30 June
2004. The revised terms of the subscription were approved by TSG shareholders
on 27 May 2005 and AngloGold Ashanti"s 17.5 percent equity interest in TSG
increased to 29.9 percent on 31 May 2005, the date on which the second
subscription was completed.
16.3 On 29 April 2005, AngloGold Ashanti announced the conditional sale of
exploration assets in the Laverton area in Australia, comprising the Sickle
royalty of $30 per ounce, the Child Harold prospect, various 100 percent
AngloGold Ashanti Australia-owned interests including the Lord Byron and Fish
projects as well as its interests in the Jubilee, Black Swan and Jasper Hills
Joint Ventures to Crescent Gold Limited, for a total consideration of A$4m
($3m). A$0.3m ($0.2m) was payable on the execution of a binding sale and
purchase agreement, A$1m ($0.8m) is payable in Crescent Gold shares and A$3m
($2m) is payable in cash, on or before 15 December 2006.
16.4 On 17 March 2005, it was announced that with effect from 1 May 2005, Mr
R Carvalho Silva and Mr N F Nicolau would be appointed executive directors to
the board of AngloGold Ashanti. At the same time, Mr J G Best indicated that
he would be retiring from the board and that Mr S Venkatakrishnan would be
appointed to the board with effect from 1 August 2005.
16.5 On 21 June 2005, Dr S E Jonah indicated that he wished to move to a
non-executive role on the board of AngloGold Ashanti, with effect from 31
July 2005. He will retain the title of President.
16.6 On 19 July 2005, Aflease Gold and Uranium Resources Limited (Aflease)
announced that it had purchased from AngloGold Ashanti, its Weltevreden mine
in an all script deal valued at R75m ($11m). On finalisation of the
transaction AngloGold Ashanti will hold in excess of 5% of Aflease shares.
16.7 On 27 July 2005, the board approved the appointment of Mr Rene Medori,
as a non-executive director with effect from 1 August 2005, in place of Mr
Tony Lea, who retires from the board with effect from 31 July 2005. Mr Medori
has nominated Mr Peter Whitcutt as his alternate.
16.8 On 27 July 2005 AngloGold Ashanti reached an agreement with the
Government of Guinea to amend the Convention de Base (stability agreement)
and resolve all outstanding disputes for a sum of $7m. In addition, the
company has agreed as part of this settlement to meet historical and
follow-up fees and costs of a consultant that the Government retained to
advise and assist it in its negotiations and resolution of the dispute. In
consideration of the above settlement, the Government has irrevocably
confirmed its waiver and abandonment of all claims and disputes of any nature
whatsoever against the AngloGold Ashanti group of companies.
17. Dividend
The directors have today declared Interim Dividend No. 98 of 170 (Interim
Dividend No. 96: 170) South African cents per ordinary share for the six months
ended 30 June 2005. In compliance with the requirements of STRATE, given the
company"s primary listing on the JSE Limited (formerly JSE Securities Exchange
South Africa), the salient dates for payment of the dividend are as follows:
To holders of ordinary shares and to holders of
CHESS Depositary Interests (CDIs)
Each CDI represents one-fifth of an ordinary share.
2005
Currency conversion date for UK pounds,
Australian dollars and Ghanaian cedis Thursday, 4 August
Last date to trade ordinary shares cum dividend Friday, 12 August
Last date to register transfers of certificated
securities cum dividend Friday, 12 August
Ordinary shares trade ex dividend Monday, 15 August
Record date Friday, 19 August
Payment date Friday, 26 August
On the payment date, dividends due to holders of certificated securities on the
South African share register will either be electronically transferred to
shareholders" bank accounts or, in the absence of suitable mandates, dividend
cheques will be posted to such shareholders.
Dividends in respect of dematerialised shareholdings will be credited to
shareholders" accounts with the relevant CSDP or broker.
To comply with the further requirements of STRATE, between Monday, 15 August
2005 and Friday, 19 August 2005, both days inclusive, no transfers between the
South African, United Kingdom, Australian and Ghana share registers will be
permitted and no ordinary shares pertaining to the South African share register
may be dematerialised or rematerialised.
To holders of American Depositary Shares
Each American Depositary Share (ADS) represents one ordinary share.
2005
Ex dividend on New York Stock Exchange Wednesday, 17 August
Record date Friday, 19 August
Approximate date for currency conversion Friday, 26 August
Approximate payment date of dividend Monday, 5 September
Assuming an exchange rate of R6.69/$1, the dividend payable on an ADS is
equivalent to 25.41 US cents. This compares with the interim dividend of 25.62
US cents per ADS paid on 7 September 2004. However, the actual rate of payment
will depend on the exchange rate on the date for currency conversion.
To holders of Ghanaian Depositary Shares (GhDSs)
100 GhDSs represent one ordinary share.
2005
Last date to trade and to register GhDSs cum dividend Friday, 12 August
GhDSs trade ex dividend Monday, 15 August
Record date Friday, 19 August
Approximate payment date of dividend Monday, 29 August
Assuming an exchange rate of R1/Cents (USD)1,349 the dividend payable per GhDS
is
equivalent to 22.93 cedis. This compares with the interim dividend of 24.848
cedis per GhDS paid on 30 August 2004. However, the actual rate of payment will
depend on the exchange rate on the date for currency conversion. In Ghana, the
authorities have determined that dividends payable to residents on the Ghana
share register be subject to a final withholding tax at a rate of 10%, similar
to the rate applicable to dividend payments made by resident companies which is
currently at 10%.
18. Group financial statements
The group financial statements for the quarter and six months ended 30 June
2005 were authorised for issue in accordance with a resolution of the directors
passed on 27 July 2005. AngloGold Ashanti is a limited liability company
incorporated in the Republic of South Africa.
19. Convertible bonds
The group changed its accounting policy for convertible bonds during the first
quarter of 2005. Previously, convertible bonds were accounted for as compound
financial instruments, part equity and part liability. The equity component was
not re-measured for changes in fair value.
Convertible bonds are now accounted for entirely as a liability, with the
option component disclosed as a derivative liability, carried at fair value.
Changes in such fair value are recorded in the income statement.
This change was made in response to additional guidance becoming available on
the interpretation of International Financial Reporting Standards. This change
is applied retrospectively and comparative figures have been restated.
The impact on comparative figures is as follows:
Quarter to 30 June 2004:
Profit attributable to equity shareholders increased by $61m;
Option component previously disclosed as equity ($82m) is removed from
shareholders equity, and replaced by a derivative liability of $43m.
Six months ended 30 June 2004:
Profit attributable to equity shareholders increased by $39m;
Option component previously disclosed as equity ($82m) is removed from
shareholders equity, and replaced by a derivative liability of $43m.
20. Borrowings
AngloGold Ashanti"s borrowings are interest bearing.
21. Detailed report
This report contains a summary of the results of AngloGold Ashanti"s
operations. A detailed report appears on the Internet and is obtainable in
printed format from the investor relations contacts, whose details, along with
the website address, appear at the end of this report.
By order of the Board
R P EDEY R M GODSELL
Chairman Chief Executive Officer
27 July 2005
Administrative information
ANGLOGOLD ASHANTI LIMITED
Registration No. 1944/017354/06
Incorporated in the Republic of South Africa
Share codes:
ISIN: ZAE000043485
JSE: ANG
LSE: AGD
NYSE: AU
ASX: AGG
GSE (Shares): AGA
GSE (GhDS): AADA
Euronext Paris: VA
Euronext Brussels: ANG
JSE Sponsor: UBS
Auditors: Ernst & Young
Contacts
South Africa
Charles Carter
Telephone: +27 11 637 6385
Fax: +27 11 637 6400
E-mail: cecarter@AngloGoldAshanti.com
Michael Clements
Telephone: +27 11 637 6647
Fax: +27 11 637 6400
E-mail: mclements@AngloGoldAshanti.com
Clement Mamathuba
Telephone: +27 11 637 6223
Fax: +27 11 637 6400
E-mail: cmamathuba@AngloGoldAshanti.com
United States of America
Andrea Maxey
Telephone: (800) 417 9255 (toll free in
USA and Canada) or +1 212 750 7999
Fax: +1 212 750 5626
E-mail: amaxey@AngloGoldAshanti.com
General E-mail enquiries
investors@AngloGoldAshanti.com
AngloGold Ashanti website
http://www.AngloGoldAshanti.com
Directors
Executive
R M Godsell (Chief Executive Officer)
J G Best
R Carvalho Silva
Dr S E Jonah KBE**
N F Nicolau
K H Williams
Non-Executive
R P Edey * (Chairman)
Dr T J Motlatsi (Deputy Chairman)
F B Arisman #
Mrs E le R Bradley
C B Brayshaw
A W Lea (Alternate: P G Whitcutt)
W A Nairn (Alternate: A H Calver *)
S R Thompson *
A J Trahar
P L Zim (Alternate: D D Barber)
* British # American **Ghanaian
Offices
Registered and Corporate
Managing Secretary: Ms Y Z Simelane
Company Secretary: C R Bull
11 Diagonal Street
Johannesburg 2001
(PO Box 62117, Marshalltown 2107)
South Africa
Telephone: +27 11 637 6000
Fax: +27 11 637 6624
Australia
Level 13, St Martins Tower
44 St George"s Terrace
Perth, WA 6000
(PO Box Z5046, Perth WA 6831)
Australia
Telephone: +61 8 9425 4604
Fax: +61 8 9425 4662
Ghana
Gold House
Patrice Lumumba Road
(P O Box 2665)
Accra
Ghana
Telephone: +233 21 772190
Fax: +233 21 778155
United Kingdom Secretaries
St James"s Corporate Services Limited
6 St James"s Place
London SW1A 1NP
England
Telephone: +44 20 7499 3916
Fax: +44 20 7491 1989
Share Registrars
South Africa
Computershare Investor Services 2004
(Pty) Limited
Ground Floor, 70 Marshall Street
Johannesburg 2001
(PO Box 61051, Marshalltown 2107)
South Africa
Telephone: 0861 100 724 (in SA)
Fax: +27 11 688 5222
web.queries@computershare.co.za
United Kingdom
Computershare Investor Services PLC
P O Box 82
The Pavilions
Bridgwater Road
Bristol BS99 7NH
England
Telephone: +44 870 702 0000
Fax: +44 870 703 6119
Australia
Computershare Investor Services Pty Limited
Level 2, 45 St George"s Terrace
Perth, WA 6000
(GPO Box D182 Perth, WA 6840)
Australia
Telephone: +61 8 9323 2000
Telephone: 1300 55 7010 (in Australia)
Fax: +61 8 9323 2033
Ghana
NTHC Limited
Martco House
Off Kwame Nkrumah Avenue
P O Box K1A 9563 Airport
Accra
Ghana
Telephone: +233 21 238492-3
Fax: +233 21 229975
ADR Depositary
The Bank of New York ("BoNY")
Investor Services, P O Box 11258
Church Street Station
New York, NY 10286-1258
United States of America
Telephone: +1 888 269 2377 (Toll free
in USA) or +9 610 382 7836 outside USA)
E-mail: shareowners@bankofny.com
Website: http://www.stockbny.com
Global BuyDIRECT SM
BoNY maintains a direct share purchase
and dividend reinvestment plan for
ANGLOGOLD ASHANTI.
Telephone: +1-888-BNY-ADRS
Certain statements contained in this document, including, without limitation,
those concerning the economic outlook for the gold mining industry,
expectations regarding gold prices and production, the completion and
commencement of commercial operations of certain of AngloGold Ashanti"s
exploration and production projects, and its liquidity and capital resources
and expenditure, contain certain forward-looking statements regarding AngloGold
Ashanti"s operations, economic performance and financial condition. Although
AngloGold Ashanti believes that the expectations reflected in such
forward-looking statements are reasonable, no assurance can be given that such
expectations will prove to have been correct. Accordingly, results could differ
materially from those set out in the forward-looking statements as a result of,
among other factors, changes in economic and market conditions, success of
business and operating initiatives, changes in the regulatory environment and
other government actions, fluctuations in gold prices and exchange rates, and
business and operational risk management. AngloGold Ashanti undertakes no
obligation to update publicly or release any revisions to these forward-looking
statements to reflect events or circumstances after the date of the annual
report on Form 20-F or to reflect the occurrence of unanticipated events. All
subsequent written or oral forward-looking statements attributable to AngloGold
Ashanti or any person acting on its behalf are qualified by the cautionary
statements herein. For a discussion on such risk factors, refer to AngloGold
Ashanti"s annual report on Form 20-F for the year ended 31 December 2004, which
was filed with the Securities and Exchange Commission (SEC) on 14July 2005.
Date: 28/07/2005 08:13:41 AM Supplied by www.sharenet.co.za
Produced by the JSE SENS Department
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