Wrap Text
ANGLOGOLD ASHANTI LIMITED - REPORT TO SHAREHOLDERS FOR THE QUARTER AND NINE
MONTHS ENDED 30 SEPTEMBER 2004
ANGLOGOLD ASHANTI LIMITED
(formerly: AngloGold Limited)
Registration No. 1944/017354/06
Incorporated in the Republic of South Africa
ISIN: ZAE000043485
Share codes:
JSE: ANG
LSE: AGD
NYSE: AU
ASX: AGG
GSE: AGA
Euronext Paris: VA
Euronext Brussels: ANG BB
Report to shareholders for the quarter and nine months ended 30 September 2004
Group results for the quarter...
* Production for the quarter increased by 9% to 1.628Moz
* Total cash costs rose by 5% to $272/oz, due mainly to continued strengthening
of operating currencies and the effects of inflation
* South African total cash costs increased by only 3% to R60,687/kg, despite a
7% mid-year wage increase
* Average spot gold price rose 2% to $402/oz; received price1 of gold up $7/oz
to $392/oz
* Adjusted headline earnings2 decreased by 16% to $43m due to cost increases
SA rand / Metric
Quarter Quarter
ended ended
Sept June
2004 2004
Unaudited Unaudited
Operating review
Gold
Produced - kg / oz (000) 50,623 46,330
Price received1 - R/kg / $/oz 80,572 81,276
Total cash costs3 - R/kg / $/oz 55,744 55,162
Total production costs3 - R/kg / $/oz 69,582 68,659
Financial review
Operating profit - R / $ million 602 203
Adjusted operating profit4 - R / $ million 631 702
Net profit (loss) - R / $ million 253 (70)
Headline earnings (loss) - R / $ million 274 (22)
Adjusted headline earnings2 - R / $ million 280 322
Capital expenditure3 - R / $ million 1,004 1,012
Earnings (loss) per ordinary
share - cents/share
Basic 96 (28)
Diluted 96 (28)
Headline 104 (9)
Adjusted headline2 106 127
Dividends - cents/share
Nine Nine
months months
ended ended
Sept Sept
2004 2003
Unaudited Unaudited
Operating review
Gold
Produced - kg / oz (000) 135,370 131,457
Price received1 - R/kg / $/oz 82,896 88,852
Total cash costs3 - R/kg / $/oz 55,727 52,206
Total production costs3 - R/kg / $/oz 69,166 63,716
Financial review
Operating profit - R / $ million 1,520 3,607
Adjusted operating profit4 - R / $ million 2,216 3,303
Net profit (loss) - R / $ million 431 1,721
Headline earnings (loss) - R / $ million 538 1,794
Adjusted headline earnings2 - R / $ million 1,001 1,628
Capital expenditure3 - R / $ million 2,583 2,181
Earnings (loss) per ordinary
share - cents/share
Basic 175 773
Diluted 175 769
Headline 218 805
Adjusted headline2 405 731
Dividends - cents/share 170 375
US dollar / Imperial
Quarter Quarter
ended ended
Sept June
2004 2004
Unaudited Unaudited
Operating review
Gold
Produced - kg / oz (000) 1,628 1,490
Price received1 - R/kg / $/oz 392 385
Total cash costs3 - R/kg / $/oz 272 260
Total production costs3 - R/kg / $/oz 340 324
Financial review
Operating profit - R / $ million 97 26
Adjusted operating profit4 - R / $ million 98 108
Net profit (loss) - R / $ million 40 (12)
Headline earnings (loss) - R / $ million 44 (5)
Adjusted headline earnings2 - R / $ million 43 51
Capital expenditure3 - R / $ million 156 153
Earnings (loss) per ordinary
share - cents/share
Basic 15 (5)
Diluted 15 (5)
Headline 17 (2)
Adjusted headline2 16 20
Dividends - cents/share
Nine Nine
months months
ended ended
Sept Sept
2004 2003
Unaudited Unaudited
Operating review
Gold
Produced - kg / oz (000) 4,352 4,226
Price received1 - R/kg / $/oz 393 354
Total cash costs3 - R/kg / $/oz 265 208
Total production costs3 - R/kg / $/oz 328 254
Financial review
Operating profit - R / $ million 230 463
Adjusted operating profit4 - R / $ million 337 422
Net profit (loss) - R / $ million 66 219
Headline earnings (loss) - R / $ million 82 228
Adjusted headline earnings2 - R / $ million 153 207
Capital expenditure3 - R / $ million 393 279
Earnings (loss) per ordinary
share - cents/share
Basic 27 98
Diluted 27 98
Headline 33 102
Adjusted headline2 62 93
Dividends - cents/share 26 51
Notes: 1. Price received including realised non-hedge derivatives.
2. Headline earnings (loss) before unrealised non-hedge derivatives
and fair value gains (losses) on interest rate swaps.
3. 2003 restated to reflect the change in accounting treatment of ore
reserve development expenditure.
4. Operating profit excluding unrealised non-hedge derivatives.
$ represents US dollar, unless otherwise stated.
Operations at a glance
for the quarter ended 30 September 2004
Price received1 Production
% %
$/oz Variance4 oz (000) Variance4
Great Noligwa 410 5 207 6
TauTona 409 5 144 (2)
Sunrise Dam 418 (1) 112 15
AngloGold Ashanti Brazil 370 (6) 64 (2)
Cerro Vanguardia6 380 5 61 30
Kopanang 408 5 119 (2)
Cripple Creek & Victor 325 (1) 90 18
Mponeng 408 5 118 12
Geita5 368 3 148 6
Bibiani 397 2 46 84
Sadiola6 397 1 38 (14)
Serra Grande6 363 (7) 24 4
Iduapriem6 375 (6) 55 104
Yatela6 402 2 24 (4)
Morila6 361 2 37 9
Obuasi 379 (5) 94 32
Navachab 387 (2) 18 13
Freda-Rebecca 447 7 5 25
Tau Lekoa 408 5 70 (14)
Ergo 409 5 53 (10)
Siguiri6 384 - 23 35
Savuka 409 5 43 13
Other 35 13
AngloGold Ashanti 392 2 1,628 9
Cash operating
Total cash costs profit2
% %
$/oz Variance4 $m Variance4
Great Noligwa 233 4 33 10
TauTona 253 10 22 5
Sunrise Dam 231 (9) 19 (17)
AngloGold Ashanti Brazil 130 1 16 (6)
Cerro Vanguardia6 145 (22) 16 60
Kopanang 303 15 12 (8)
Cripple Creek & Victor 218 5 12 (8)
Mponeng 314 (3) 10 67
Geita5 294 30 8 (43)
Bibiani 235 (1) 7 133
Sadiola6 267 15 6 -
Serra Grande6 136 9 6 -
Iduapriem6 252 (18) 5 -
Yatela6 233 (2) 4 -
Morila6 248 4 3 (25)
Obuasi 300 3 3 (25)
Navachab 301 (6) 1 (50)
Freda-Rebecca 394 (12) 1 200
Tau Lekoa 406 28 - (100)
Ergo 391 - (2) -
Siguiri6 504 31 (2) -
Savuka 451 (2) (3) 25
Other 14 (13)
AngloGold Ashanti 272 5 191 2
Adjusted operating
profit3
%
$m Variance4
Great Noligwa 29 12
TauTona 13 -
Sunrise Dam 13 (28)
AngloGold Ashanti Brazil 13 (7)
Cerro Vanguardia6 9 200
Kopanang 9 (10)
Cripple Creek & Victor 2 (50)
Mponeng 3 100
Geita5 - (100)
Bibiani 2 -
Sadiola6 3 (25)
Serra Grande6 5 -
Iduapriem6 2 -
Yatela6 2 (33)
Morila6 - (100)
Obuasi (4) -
Navachab 1 -
Freda-Rebecca - 100
Tau Lekoa (4) (500)
Ergo (2) -
Siguiri6 (1) 50
Savuka (5) 29
Other 8 (11)
AngloGold Ashanti 98 (9)
1 Price received includes realised non-hedge derivatives.
2 Adjusted operating profit plus amortisation of mining assets less non-cash
revenues.
3 Operating profit excluding unrealised non-hedge derivatives.
4 Variance September 2004 quarter on June 2004 quarter - increase (decrease).
5 Attributable 100% from May 2004.
6 Attributable.
Review of the gold market
After the price correction of the second quarter, the period under review saw
the gold price consolidate, and then resume the upward trend of the past three
years. The market closed at the high for the quarter of $418/oz, $25/oz higher
than the price at the close of the second quarter. The average spot price for
the quarter of $402/oz was up by $8/oz on the average price for the previous
quarter. The trading range of $34/oz showed a reduction in volatility in the
price after the range of $59/oz in the second quarter. See graph 1 "Gold/US$
Spot Price : 2004".
GOLD
Following the second quarter fall in the gold price on the back of fears of a
credit squeeze in China and a hard landing for the Chinese economy, and the
associated sell-off in commodities that accompanied this fear, the gold price
has regained most of its strength during the third quarter.
Since the end of the quarter, the price has come close to the high of $430/oz
seen in the first quarter of this year. Whilst the gold price continues to be
most responsive to movements in the US dollar exchange rate against the euro,
the price has also shown some independence during the quarter, rising firmly
even when there has been little movement in the currency markets. This would
seem to reflect increased investor interest in gold as part of a broader move
of investment money towards hard assets. This pattern has been evident in other
markets during this period. This does not necessarily signal a disconnect from
the US dollar or the US economy and gold is likely to benefit from dollar
weakness in the future. It is rather that the gold market seems to have found
supplementary reasons for appealing to investors, to the benefit of the price
today.
Once again, the vehicle for interest in gold was primarily the New York
Commodities Exchange (Comex), and the movement in the dollar gold spot price
reflects increasing interest in gold on the exchange during the quarter. The
net open position at the end of September reached over 19Moz, and has remained
since then at almost 20Moz net long. This figure is very close to the all-time
high net position on the Comex of 22.6Moz net long in the first week of April
2004, and the gold price has tracked this interest closely. News from the US
economy in particular, and the direction of the US dollar during the balance of
this quarter, will be important factors in the behaviour of investors towards
gold on Comex going forward.
See graph 2 "NY Comex : Nett Open Interest and Gold Price : 2004".
PHYSICAL DEMAND
The physical market for gold remains relatively quiet and the market is
dependent on investment demand to clear the supply/demand balance.
Nevertheless, there has been encouraging news from some areas of a year-on-year
recovery in gold offtake. Demand for gold for jewellery in Turkey was
particularly strong in the first half of 2004, although it should be borne in
mind that an important part of this growth arises from Turkey winning market
share from Italy, the developed world"s largest gold jewellery manufacturer.
The market in mainland China also reported positive growth due entirely to a
new category of modern 18ct gold jewellery introduced by the World Gold Council
to that market. With the end of the monsoon season and the commencement of the
auspicious period for marriages in India, there has been some recovery in
offtake in the Indian market in spite of the higher US dollar spot prices.
CURRENCIES
Since early 2004, the US dollar has recovered from its weakest position in the
current cycle of $1.30 to the euro. For much of this year, the dollar has
traded sideways in a range of $1.18-$1.24 to the euro. However, most
commentators see this sideways movement as temporary and forecast an inevitable
further decline of the US currency against both the euro and the yen.
Market forecasts project the dollar between $1.30 and $1.40 against the euro
and between Y100 and Y105 by the end of 2005. Even the exceptions to these
forecasts see the dollar only in a sideways channel, trading between $1.15 and
$1.20, rather than any measurable strengthening of the US currency. In
structural terms, there are economic circumstances - particularly in the shape
of rising deficits in the US economy - which would seem to make it likely that
the US dollar should weaken further, and possibly substantially. In previous
economic cycles, budget and current account deficits in the US have made
recession almost inevitable in order to bring economic fundamentals back into
balance. However, with the other major economies (Japan and Europe) showing
lower growth rates and more serious economic structural problems, and with the
significant role played in global trade flows today by China, it is not yet
certain that recession is quite as inevitable.
See graph 3 "US$/Euro Exchange Rate : 2001- 2004
A period of weakness in the South African currency during the quarter was
followed by an unexpected rate cut of 50 basis points by the South African
Reserve Bank, which caused the market to pause briefly.
However, for the rest of the quarter, the rand performed robustly.
The average exchange rate for the quarter of R6.37 to the US dollar is the
strongest average exchange rate for a quarter since the final quarter of 1999.
The rand shows no sign of weakness in the current market circumstances. In many
ways, the strength of the currency over the past two years is justified on
sound economic terms - the South African economy today is well managed with a
low budget deficit, an effective fiscal regime and declining inflation. There
is probably more good news to come (for example, in regard to further country
risk ratings), which will bolster the currency further in the short term.
HEDGING
As at 30 September 2004, the net delta hedge position of AngloGold Ashanti was
12.71Moz or 395.3t, valued at the spot price of gold on that date of
$418.80/oz. This net delta position reflects a slight increase of some
212,000oz or 6.6t in the net size of the combined AngloGold Ashanti hedge
compared with the end of the previous quarter.
This increase is due entirely to the increase in the delta volume of short call
options in the hedge value at a gold price $25/oz higher than the price at
which the hedge was valued on 30 June 2004.
Outright forward contracts declined quarter-on- quarter by some 340,000oz, or
10.5t. The marked-to-market value of the position as at 30 September 2004 was
negative $1,139m, again reflecting the sharply higher dollar price against
which the hedge was valued in comparison with the previous valuation at 30 June
2004. The company continues to manage its hedge positions actively, and to
reduce overall levels of pricing commitments in respect of future production of
gold.
Hedge position
As at 30 September 2004, 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 12.71Moz or 395.3t (at 30
June 2004: 12.5Moz or 388.9t).
The marked-to-market value of all hedge transactions making up the hedge
positions was a negative $1.139bn (negative R7.346bn) as at 30 September 2004
(as at 30 June 2004: $927.1m or R5.71bn). This value at 30 September 2004 was
based on a gold price of $418.80/oz, exchange rates of R/$6.45 and A$/$0.7258
and the prevailing market interest rates and volatilities at that date.
As at 27 October 2004, the marked-to-market value of the hedge book was a
negative $1.192bn (negative R7.42bn), based on a gold price of $425.50/oz and
exchange rates of R/$6.2275 and A$/$0.7452 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 2004 2005 2006 2007
DOLLAR GOLD
Forward contracts Amount (kg) 18,558 51,150 39,918 38,519
$ per oz $323 $329 $341 $343
Put options
purchased Amount (kg) 2,264 3,381 5,481 1,455
$ per oz $391 $347 $355 $292
*Delta (kg) 750 496 871 50
Put options sold Amount (kg) 6,532 2,799 4,354
$ per oz $369 $345 $339
*Delta (kg) 746 181 432
Call options
purchased Amount (kg) 6,551 8,947 1,538 2,003
$ per oz $350 $339 $370 $361
*Delta (kg) 6,518 8,395 1,243 1,671
Call options sold Amount (kg) 10,556 38,075 22,208 20,647
$ per oz $370 $383 $351 $346
*Delta (kg) 9,328 32,634 18,948 18,046
Year 2008 2009-2013 Total
DOLLAR GOLD
Forward contracts Amount (kg) 28,256 62,779 239,180
$ per oz $360 $370 $347
Put options purchased Amount (kg) 12,581
$ per oz $352
*Delta (kg) 2,167
Put options sold Amount (kg) 13,685
$ per oz $355
*Delta (kg) 1,359
Call options purchased Amount (kg) 19,039
$ per oz $348
*Delta (kg) 17,827
Call options sold Amount (kg) 22,096 46,833 160,415
$ per oz $358 $375 $367
*Delta (kg) 18,807 39,590 137,353
Year 2004 2005 2006 2007
RAND GOLD
Forward
contracts Amount (kg)
Rand per kg
Put options
purchased Amount (kg) 933 1,875
Rand per kg R80,538 R93,602
*Delta (kg) 11 550
Put options
sold Amount (kg) 5,443 1,400
Rand per kg R84,801 R88,414
*Delta (kg) 1,466 365
Call options
purchased Amount (kg) 933
Rand per kg R79,251
*Delta (kg) 933
Call options
sold Amount (kg) 4,747 5,735 6,119 746
Rand per kg R91,727 R129,890 R118,721 R173,119
*Delta (kg) 3,580 1,093 1,900 81
Year 2008 2009-2013 Total
RAND GOLD
Forward contracts Amount (kg) 933 933
Rand per kg R116,335 R116,335
Put options purchased Amount (kg) 2,808
Rand per kg R89,261
*Delta (kg) 561
Put options sold Amount (kg) 6,843
Rand per kg R85,540
*Delta (kg) 1,831
Call options purchased Amount (kg) 933
Rand per kg R79,251
*Delta (kg) 933
Call options sold Amount (kg) 2,986 8,958 29,291
Rand per kg R187,586 R216,522 R154,850
*Delta (kg) 360 1,854 8,868
Year 2004 2005 2006 2007
A DOLLAR
GOLD
Forward
contracts Amount (kg) 5,494 4,199 9,331 8,398
A$ per oz A$578 A$599 A$671 A$648
Put
options
purchased Amount (kg) 1,244
A$ per oz A$585
*Delta (kg) 517
Put
options
sold Amount (kg) 1,400 1,244
A$ per oz A$574 A$553
*Delta (kg) 481 253
Call
options
purchased Amount (kg) 3,110 6,221 3,732
A$ per oz A$724 A$673 A$668
*Delta (kg) 289 2,776 1,998
Call
options
sold Amount (kg) 1,400 1,244
A$ per oz A$581 A$602
*Delta (kg) 557 573
Total net Delta (kg) 28,134 81,544 66,702 61,425
gold:
Delta (oz) 904,532 2,621,689 2,144,528 1,974,868
Year 2008 2009-2013 Total
A DOLLAR GOLD
Forward contracts Amount (kg) 3,110 6,501 37,033
A$ per oz A$665 A$678 A$645
Put options purchased Amount (kg) 1,244
A$ per oz A$585
*Delta (kg) 517
Put options sold Amount (kg) 2,644
A$ per oz A$564
*Delta (kg) 734
Call options purchased Amount (kg) 3,110 4,354 20,527
A$ per oz A$680 A$707 A$688
*Delta (kg) 1,902 2,867 9,832
Call options sold Amount (kg) 2,644
A$ per oz A$591
*Delta (kg) 1,130
Total net gold: Delta (kg) 48,631 108,790 395,227
Delta (oz) 1,563,532 3,497,663 12,706,812
The following table indicates the group"s currency hedge position at 30
September 2004
Year 2004 2005 2006 2007
RAND DOLLAR (000)
Forward contracts Amount ($)
Rand per $
Put options purchased Amount ($)
Rand per $
*Delta ($)
Put options sold Amount ($)
Rand per $
*Delta ($)
Call options purchased Amount ($)
Rand per $
*Delta ($)
Call options sold Amount ($) 50,000
Rand per $ R6.54
*Delta ($) 17,597
Year 2008 2009-2013 Total
RAND DOLLAR (000)
Forward contracts Amount ($)
Rand per $
Put options purchased Amount ($)
Rand per $
*Delta ($)
Put options sold Amount ($)
Rand per $
*Delta ($)
Call options purchased Amount ($)
Rand per $
*Delta ($)
Call options sold Amount ($) 50,000
Rand per $ R6.54
*Delta ($) 17,597
Year 2004 2005 2006 2007
A DOLLAR (000)
Forward contracts Amount ($) 55,237
$ per A$ A$0.59
Put options purchased Amount ($)
$ per A$
*Delta ($)
Put options sold Amount ($)
$ per A$
*Delta ($)
Call options purchased Amount ($)
$ per A$
*Delta ($)
Call options sold Amount ($)
$ per A$
*Delta ($)
Year 2008 2009-2013 Total
A DOLLAR (000)
Forward contracts Amount ($) 55,237
$ per A$ A$0.59
Put options purchased Amount ($)
$ per A$
*Delta ($)
Put options sold Amount ($)
$ per A$
*Delta ($)
Call options purchased Amount ($)
$ per A$
*Delta ($)
Call options sold Amount ($)
$ per A$
*Delta ($)
Year 2004 2005 2006 2007
BRAZILIAN REAL
(000)
Forward contracts Amount ($)
$ per BRL
Put options purchased Amount ($) 3,300 600
$ per BRL BRL3.13 BRL3.38
*Delta ($) 3,139 503
Put options sold Amount ($) 2,550 600
$ per BRL BRL2.79 BRL3.21
*Delta ($) 506 415
Call options purchased Amount ($)
$ per BRL
*Delta ($)
Call options sold Amount ($) 3,300 600
$ per BRL BRL3.23 BRL3.55
*Delta ($) 90 43
Year 2008 2009-2013 Total
BRAZILIAN REAL
(000)
Forward contracts Amount ($)
$ per BRL
Put options purchased Amount ($) 3,900
$ per BRL BRL3.17
*Delta ($) 3,642
Put options sold Amount ($) 3,150
$ per BRL BRL2.87
*Delta ($) 921
Call options purchased Amount ($)
$ per BRL
*Delta ($)
Call options sold Amount ($) 3,900
$ per BRL BRL3.28
*Delta ($) 133
Year 2004 2005 2006 2007
DOLLAR SILVER
Forward contracts Amount (kg)
$ per oz
Put options purchased Amount (kg) 7,776 31,104 31,104
$ per oz $7.00 $7.00 $7.00
*Delta (kg) 3,781 13,977 12,731
Put options sold Amount (kg) 7,776 31,104 31,104
$ per oz $6.06 $6.06 $6.06
*Delta (kg) 1,466 7,962 8,608
Call options purchased Amount (kg)
$ per oz
*Delta (kg)
Call options sold Amount (kg) 7,776 31,104 31,104
$ per oz $8.00 $8.00 $8.00
*Delta (kg) 1,758 11,172 14,229
Year 2008 2009-2013 Total
DOLLAR SILVER
Forward contracts Amount (kg)
$ per oz
Put options purchased Amount (kg) 69,984
$ per oz $7.00
*Delta (kg) 30,489
Put options sold Amount (kg) 69,984
$ per oz $6.06
*Delta (kg) 18,036
Call options purchased Amount (kg)
$ per oz
*Delta (kg)
Call options sold Amount (kg) 69,984
$ per oz $8.00
*Delta (kg) 27,159
* The Delta position indicated above reflects the nominal amount of the
option multiplied by the mathematical probability of the option being
exercised. This is calculated using the Black-Scholes option formula with
the ruling market prices, interest rates and volatilities as at 30
September 2004.
Group income statement
Quarter Quarter
ended ended
September June
2004 2004
SA Rand million Notes Unaudited Unaudited
Gold income 4,171 3,705
Cost of sales 2 (3,651) (3,091)
520 614
Non-hedge derivatives 82 (411)
Operating profit 602 203
Corporate administration and other
expenses (84) (105)
Market development costs (30) (22)
Exploration costs (75) (72)
Interest receivable 63 72
Other net income (expenses) 13 (35)
Finance costs (129) (112)
Fair value gains (losses) on interest
rate swaps 24 (15)
Profit (loss) before exceptional items 384 (86)
Amortisation of goodwill (48) (54)
Impairment of mining assets (8) -
Profit on disposal of assets and
subsidiaries 36 7
Profit (loss) on ordinary activities
before taxation 364 (133)
Taxation 3 (72) 87
Profit (loss) on ordinary activities
after taxation 292 (46)
Minority interest (39) (24)
253 (70)
Net profit (loss)
Adjusted operating profit
The operating profit has been adjusted by
the
following to arrive at adjusted operating
profit:
Operating profit 602 203
Unrealised non-hedge derivatives 29 499
Adjusted operating profit 631 702
Headline earnings
The net profit has been adjusted by the
following to
arrive at headline earnings:
Net profit (loss) 253 (70)
Amortisation of goodwill 48 54
Impairment of mining assets 8 -
Profit on disposal of assets and
subsidiaries (36) (7)
Current and deferred taxation on
exceptional items 3 1 1
Headline earnings (loss) 274 (22)
Unrealised non-hedge derivatives and fair
value
gains (losses) on interest rate swaps 5 514
Deferred tax on unrealised non-hedge
derivatives and fair
3 1 (170)
value gains (losses) on interest rate
swaps
Adjusted headline earnings 280 322
Earnings (loss) per ordinary share (cents)
- Basic 96 (28)
- Diluted 96 (28)
- Headline 104 (9)
- Adjusted headline 106 127
Dividends
- Rm
- cents per share
Quarter Nine months Nine months
ended ended ended
September September September
2003 2004 2003
SA Rand million Unaudited Unaudited Unaudited
Gold income 3,735 11,173 11,580
Cost of sales (2,821) (9,323) (8,638)
914 1,850 2,942
Non-hedge derivatives 390 (330) 665
Operating profit 1,304 1,520 3,607
Corporate administration and
other expenses (46) (265) (213)
Market development costs (29) (78) (94)
Exploration costs (68) (206) (215)
Interest receivable 56 219 191
Other net income (expenses) (31) (32) (130)
Finance costs (77) (385) (217)
Fair value gains (losses) on
interest rate swaps 7 (10) 7
Profit (loss) before exceptional
items 1,116 763 2,936
Amortisation of goodwill (54) (153) (168)
Impairment of mining assets (252) (8) (347)
Profit on disposal of assets and
subsidiaries 280 63 336
Profit (loss) on ordinary
activities before taxation 1,090 665 2,757
Taxation (334) (133) (938)
Profit (loss) on ordinary
activities after taxation 756 532 1,819
Minority interest (27) (101) (98)
729 431 1,721
Net profit (loss)
Adjusted operating profit
The operating profit has been
adjusted by the
following to arrive at adjusted
operating profit:
Operating profit 1,304 1,520 3,607
Unrealised non-hedge derivatives (300) 696 (304)
Adjusted operating profit 1,004 2,216 3,303
Headline earnings
The net profit has been adjusted
by the following to
arrive at headline earnings:
Net profit (loss) 729 431 1,721
Amortisation of goodwill 54 153 168
Impairment of mining assets 252 8 347
Profit on disposal of assets and
subsidiaries (280) (63) (336)
Current and deferred taxation on
exceptional items (81) 9 (106)
Headline earnings (loss) 674 538 1,794
Unrealised non-hedge derivatives
and fair value
gains (losses) on interest rate
swaps (307) 706 (311)
Deferred tax on unrealised
non-hedge derivatives and
130 (243) 145
value gains (losses) on interest
rate swaps
Adjusted headline earnings 497 1,001 1,628
Earnings (loss) per ordinary
share (cents)
- Basic 327 175 773
- Diluted 326 175 769
- Headline 303 218 805
- Adjusted headline 223 405 731
Dividends
- Rm 453 837
- cents per share 170 375
The results have been prepared in accordance with International Financial
Reporting Standards (IFRS).
Group income statement
Quarter Quarter
ended ended
September June
2004 2004
US Dollar million Notes Unaudited Unaudited
Gold income 653 563
Cost of sales 2 (572) (470)
81 93
Non-hedge derivatives 16 (67)
Operating profit 97 26
Corporate administration and other
expenses (13) (16)
Market development costs (5) (3)
Exploration costs (12) (11)
Interest receivable 10 11
Other net income (expenses) 2 (5)
Finance costs (20) (17)
Fair value gains (losses) on interest
rate swaps 3 (2)
Profit (loss) before exceptional items 62 (17)
Amortisation of goodwill (7) (8)
Impairment of mining assets (1) -
Profit on disposal of assets and
subsidiaries 5 -
Profit (loss) on ordinary activities
before taxation 59 (25)
Taxation 3 (13) 15
Profit (loss) on ordinary activities
after taxation 46 (10)
Minority interest (6) (2)
Net profit (loss) 40 (12)
Adjusted operating profit
The operating profit has been adjusted by
the following to
arrive at adjusted operating profit:
Operating profit 97 26
Unrealised non-hedge derivatives 1 82
Adjusted operating profit 98 108
Headline earnings
The net profit has been adjusted by the
following to arrive
at headline earnings:
Net profit (loss) 40 (12)
Amortisation of goodwill 7 8
Impairment of mining assets 1 -
Profit on disposal of assets and
subsidiaries (5) -
Current and deferred taxation on
exceptional items 3 1 (1)
Headline earnings (loss) 44 (5)
Unrealised non-hedge derivatives and fair
value gains
(losses) on interest rate swaps (2) 84
Deferred tax on unrealised non-hedge
derivatives and fair value
3 1 (28)
gains (losses) on interest rate swaps
Adjusted headline earnings 43 51
Earnings (loss) per ordinary share (cents)
- Basic 15 (5)
- Diluted 15 (5)
- Headline 17 (2)
- Adjusted headline 16 20
Dividends
- $m
- cents per share
Quarter Nine months Nine months
ended ended ended
September September September
2003 2004 2003
US Dollar million Unaudited Unaudited Unaudited
Gold income 505 1,704 1,482
Cost of sales (381) (1,423) (1,107)
124 281 375
Non-hedge derivatives 52 (51) 88
Operating profit 176 230 463
Corporate administration and
other expenses (6) (40) (27)
Market development costs (4) (12) (12)
Exploration costs (9) (31) (28)
Interest receivable 8 33 24
Other net income (expenses) (4) (5) (17)
Finance costs (11) (58) (28)
Fair value gains (losses) on
interest rate swaps 1 (1) 1
Profit (loss) before exceptional
items 151 116 376
Amortisation of goodwill (7) (23) (21)
Impairment of mining assets (35) (1) (47)
Profit on disposal of assets and
subsidiaries 38 9 45
Profit (loss) on ordinary
activities before taxation 147 101 353
Taxation (46) (19) (122)
Profit (loss) on ordinary
activities after taxation 101 82 231
Minority interest (4) (16) (12)
Net profit (loss) 97 66 219
Adjusted operating profit
The operating profit has been
adjusted by the following to
arrive at adjusted operating
profit:
Operating profit 176 230 463
Unrealised non-hedge derivatives (40) 107 (41)
Adjusted operating profit 136 337 422
Headline earnings
The net profit has been adjusted
by the following to arrive
at headline earnings:
Net profit (loss) 97 66 219
Amortisation of goodwill 7 23 21
Impairment of mining assets 35 1 47
Profit on disposal of assets and
subsidiaries (38) (9) (45)
Current and deferred taxation on
exceptional items (11) 1 (14)
Headline earnings (loss) 90 82 228
Unrealised non-hedge derivatives
and fair value gains
(losses) on interest rate swaps (41) 108 (42)
Deferred tax on unrealised
non-hedge derivatives and fair
value
18 (37) 21
gains (losses) on interest rate
swaps
Adjusted headline earnings 67 153 207
Earnings (loss) per ordinary
share (cents)
- Basic 44 27 98
- Diluted 43 27 98
- Headline 40 33 102
- Adjusted headline 30 62 93
Dividends
- $m 68 113
- cents per share 26 51
The results have been prepared in accordance with International Financial
Reporting Standards (IFRS).
Dividends are translated at actual rates on date of payment.
Group balance sheet
As at As at As at As at
September June December September
2004 2004 2003 2003
SA Rand million Unaudited Unaudited Audited Unaudited
ASSETS
Non-current assets
Tangible assets 35,450 34,079 18,427 17,711
Intangible assets 2,636 2,524 2,749 2,735
Investments in associates 42 43 47 151
Other investments 239 133 86 193
Inventories (1) 142 137 47 14
Other non-current assets 493 520 1,011 844
Derivatives 796 832 630 563
39,798 38,268 22,997 22,211
Current assets
Inventories 2,531 2,374 2,003 1,767
Trade and other
receivables 1,790 1,873 1,461 1,316
Cash and cash equivalents 2,846 3,458 3,367 3,765
Current portion of other
non-current assets 390 385 59 62
Derivatives 1,984 1,904 2,515 2,762
9,541 9,994 9,405 9,672
TOTAL ASSETS 49,339 48,262 32,402 31,883
EQUITY AND LIABILITIES
Equity 20,178 19,782 11,222 11,056
Non-current liabilities
Borrowings 8,360 8,088 5,383 5,758
Provisions 2,162 2,117 1,832 1,744
Deferred taxation 8,463 8,268 3,986 4,011
Derivatives 2,854 2,123 2,194 1,647
21,839 20,596 13,395 13,160
Current liabilities
Current portion of
borrowings 2,078 2,125 2,340 2,264
Trade and other payables 2,841 2,940 2,339 2,049
Taxation 130 157 164 267
Derivatives 2,273 2,662 2,942 3,087
7,322 7,884 7,785 7,667
TOTAL EQUITY AND
LIABILITIES 49,339 48,262 32,402 31,883
The results have been prepared in accordance with International Financial
Reporting Standards (IFRS).
(1)Relates to heap leach operations.
Group balance sheet
As at As at As at As at
September June December September
2004 2004 2003 2003
US Dollar million Unaudited Unaudited Audited Unaudited
ASSETS
Non-current assets
Tangible assets 5,474 5,473 2,764 2,552
Intangible assets 407 405 412 394
Investments in associates 7 7 7 22
Other investments 37 21 13 28
Inventories (1) 22 22 7 2
Other non-current assets 76 83 153 121
Derivatives 123 134 94 81
6,146 6,145 3,450 3,200
Current assets
Inventories 391 381 300 255
Trade and other
receivables 276 301 219 189
Cash and cash equivalents 440 555 505 542
Current portion of other
non-current assets 60 62 9 9
Derivatives 306 306 377 398
1,473 1,605 1,410 1,393
TOTAL ASSETS 7,619 7,750 4,860 4,593
EQUITY AND LIABILITIES
Equity 3,116 3,177 1,684 1,593
Non-current liabilities
Borrowings 1,291 1,299 807 830
Provisions 334 340 275 251
Deferred taxation 1,307 1,328 598 578
Derivatives 440 341 329 237
3,372 3,308 2,009 1,896
Current liabilities
Current portion of
borrowings 321 341 351 326
Trade and other payables 439 471 350 295
Taxation 20 25 25 39
Derivatives 351 428 441 445
1,131 1,265 1,167 1,104
TOTAL EQUITY AND
LIABILITIES 7,619 7,750 4,860 4,593
The results have been prepared in accordance with International Financial
Reporting Standards (IFRS).
(1)Relates to heap leach operations.
Group cash flow statement
Quarter Quarter Quarter
ended ended ended
September June September
2004 2004 2003
SA Rand million Unaudited Unaudited Unaudited
Cash flows from operating activities
Cash generated from operations 1,367 781 1,043
Interest received 53 61 46
Environmental and other expenditure (38) (13) (41)
Dividends received from associates - - -
Finance costs (189) (78) (67)
Taxation paid (32) (56) (51)
Net cash inflow from operating
activities 1,161 695 930
Cash flows from investing activities
Capital expenditure (1,004) (1,012) (661)
Proceeds from disposal of mining
assets 14 9 5
Investments acquired (98) (2) -
Proceeds from disposal of investments - - 351
(Acquisition) disposal of subsidiary (235) (802) -
Net loans advanced 50 74 12
Net cash outflow from investing
activities (1,273) (1,733) (293)
Cash flows from financing activities
Proceeds from issue of share capital 4 1 21
Share issue expenses - (1) (1)
Proceeds from borrowings 173 60 2,182
Repayment of borrowings (257) (1,379) (366)
Dividends paid (453) (59) (882)
Net cash (outflow) inflow from
financing activities (533) (1,378) 954
Net (decrease) increase in cash and
cash equivalents (645) (2,416) 1,591
Translation 33 6 (156)
Opening cash and cash equivalents 3,458 5,868 2,330
Closing cash and cash equivalents 2,846 3,458 3,765
Cash generated from operations
Profit (loss) on ordinary activities
before taxation 364 (133) 1,090
Adjusted for:
Non-cash movements (43) (28) 4
Movement on non-hedge derivatives 45 425 (337)
Amortisation of mining assets 660 600 391
Deferred stripping costs (15) (40) (104)
Interest receivable (63) (72) (56)
Finance costs 129 112 77
Amortisation of goodwill 48 54 54
Impairment of mining assets 8 - 252
Profit on disposal of assets and
subsidiaries (36) (7) (280)
Movement in working capital 270 (130) (48)
1,367 781 1,043
Movement in working capital
(Increase) decrease in inventories (162) (157) (1)
Decrease (increase) in trade and
other receivables 273 (168) 207
Increase (decrease) in trade and
other payables 159 195 (254)
270 (130) (48)
Nine months Nine months
ended ended
September September
2004 2003
SA Rand million Unaudited Unaudited
Cash flows from operating activities
Cash generated from operations 2,698 3,626
Interest received 186 161
Environmental and other expenditure (68) (125)
Dividends received from associates - 9
Finance costs (442) (211)
Taxation paid (193) (677)
Net cash inflow from operating activities 2,181 2,783
Cash flows from investing activities
Capital expenditure (2,583) (1,687)
Proceeds from disposal of mining assets 49 18
Investments acquired (101) (3)
Proceeds from disposal of investments - 351
(Acquisition) disposal of subsidiary (1,037) 8
Net loans advanced 126 12
Net cash outflow from investing activities (3,546) (1,301)
Cash flows from financing activities
Proceeds from issue of share capital 16 41
Share issue expenses (1) (2)
Proceeds from borrowings 6,970 2,330
Repayment of borrowings (4,828) (780)
Dividends paid (1,270) (2,442)
Net cash (outflow) inflow from financing
activities 887 (853)
Net (decrease) increase in cash and cash
equivalents (478) 629
Translation (43) (408)
Opening cash and cash equivalents 3,367 3,544
Closing cash and cash equivalents 2,846 3,765
Cash generated from operations
Profit (loss) on ordinary activities before
taxation 665 2,757
Adjusted for:
Non-cash movements (25) 133
Movement on non-hedge derivatives 659 (351)
Amortisation of mining assets 1,706 1,284
Deferred stripping costs (129) (235)
Interest receivable (219) (191)
Finance costs 385 217
Amortisation of goodwill 153 168
Impairment of mining assets 8 347
Profit on disposal of assets and subsidiaries (63) (336)
Movement in working capital (442) (167)
2,698 3,626
Movement in working capital
(Increase) decrease in inventories (123) 54
Decrease (increase) in trade and other
receivables 48 192
Increase (decrease) in trade and other payables (367) (413)
(442) (167)
The results have been prepared in accordance with International Financial
Reporting Standards (IFRS).
Group cash flow statement
Quarter Quarter Quarter
ended ended ended
September June September
2004 2004 2003
US Dollar million Unaudited Unaudited Unaudited
Cash flows from operating activities
Cash generated from operations 196 101 145
Interest received 8 9 6
Environmental and other expenditure (5) (2) (5)
Dividends received from associates - - -
Finance costs (29) (12) (9)
Taxation paid (5) (9) (11)
Net cash inflow from operating
activities 165 87 126
Cash flows from investing activities
Capital expenditure (156) (153) (88)
Proceeds from disposal of mining
assets 2 1 1
Investments acquired (15) - -
Proceeds from disposal of investments - - 45
(Acquisition) disposal of subsidiary (39) (126) -
Net loans advanced 8 11 1
Net cash outflow from investing
activities (200) (267) (41)
Cash flows from financing activities
Proceeds from issue of share capital 1 - 3
Share issue expenses - - -
Proceeds from borrowings 42 22 296
Repayment of borrowings (51) (213) (48)
Dividends paid (68) (9) (119)
Net cash (outflow) inflow from
financing activities (76) (200) 132
Net (decrease) increase in cash and
cash equivalents (111) (380) 217
Translation (4) 1 14
Opening cash and cash equivalents 555 934 311
Closing cash and cash equivalents 440 555 542
Cash generated from operations
Profit (loss) on ordinary activities
before taxation 59 (25) 147
Adjusted for:
Non-cash movements (9) (3) (1)
Movement on non-hedge derivatives 5 70 (45)
Amortisation of mining assets 104 91 53
Deferred stripping costs (2) (6) (14)
Interest receivable (10) (11) (8)
Finance costs 20 17 11
Amortisation of goodwill 7 8 7
Impairment of mining assets 1 - 35
Profit on disposal of assets and
subsidiaries (5) - (38)
Movement in working capital 26 (40) (2)
196 101 145
Movement in working capital
(Increase) in inventories (13) (29) (19)
Decrease (increase) in trade and
other receivables 53 (29) 14
(Decrease) increase in trade and
other payables (14) 18 3
26 (40) (2)
Nine months Nine months
ended ended
September September
2004 2003
US Dollar million Unaudited Unaudited
Cash flows from operating activities
Cash generated from operations 417 457
Interest received 28 20
Environmental and other expenditure (10) (15)
Dividends received from associates - 1
Finance costs (67) (27)
Taxation paid (29) (83)
Net cash inflow from operating activities 339 353
Cash flows from investing activities
Capital expenditure (393) (216)
Proceeds from disposal of mining assets 7 3
Investments acquired (15) -
Proceeds from disposal of investments - 45
(Acquisition) disposal of subsidiary (165) 1
Net loans advanced 19 1
Net cash outflow from investing activities (547) (166)
Cash flows from financing activities
Proceeds from issue of share capital 3 6
Share issue expenses - -
Proceeds from borrowings 1,061 314
Repayment of borrowings (736) (100)
Dividends paid (190) (309)
Net cash (outflow) inflow from financing
activities 138 (89)
Net (decrease) increase in cash and cash
equivalents (70) 98
Translation 5 31
Opening cash and cash equivalents 505 413
Closing cash and cash equivalents 440 542
Cash generated from operations
Profit (loss) on ordinary activities before
taxation 101 353
Adjusted for:
Non-cash movements (6) 16
Movement on non-hedge derivatives 102 (47)
Amortisation of mining assets 261 164
Deferred stripping costs (19) (30)
Interest receivable (33) (24)
Finance costs 58 28
Amortisation of goodwill 23 21
Impairment of mining assets 1 47
Profit on disposal of assets and subsidiaries (9) (45)
Movement in working capital (62) (26)
417 457
Movement in working capital
(Increase) in inventories (29) (43)
Decrease (increase) in trade and other
receivables 1 (25)
(Decrease) increase in trade and other payables (34) 42
(62) (26)
The results have been prepared in accordance with International Financial
Reporting Standards (IFRS).
Statement of changes in equity
Attributable equity holders of the group
Ordinary Equity Non -
share portion of distribu-
capital and convertible table
premium bond reserves
SA Rand million
Balance at December 2002 9,607 - 138
Movements on other comprehensive
income
Net profit
Dividends paid
Ordinary shares issued 39
Translation
Balance at September 2003 9,646 - 138
Balance at December 2003 9,668 - 138
Movements on other comprehensive
income
Net profit
Dividends paid
Ordinary shares issued 9,316
Issue of convertible bond 533
At acquisition
Translation
Balance at September 2004 18,984 533 138
Attributable equity holders of the group
Other
Foreign compre-
currency hensive Retained
translation income earnings
SA Rand million
Balance at December 2002 360 (1,583) 3,853
Movements on other comprehensive
income (55)
Net profit 1,721
Dividends paid (2,337)
Ordinary shares issued
Translation (1,138) 193
Balance at September 2003 (778) (1,445) 3,237
Balance at December 2003 (755) (2,031) 3,848
Movements on other comprehensive
income 605
Net profit 431
Dividends paid (1,201)
Ordinary shares issued
Issue of convertible bond
At acquisition
Translation (811) 40
Balance at September 2004 (1,566) (1,386) 3,078
Attributable equity holders of the group
Minority
Total interest Equity
SA Rand million
Balance at December 2002 12,375 347 12,722
Movements on other comprehensive
income (55) (55)
Net profit 1,721 98 1,819
Dividends paid (2,337) (105) (2,442)
Ordinary shares issued 39 39
Translation (945) (82) (1,027)
Balance at September 2003 10,798 258 11,056
Balance at December 2003 10,868 354 11,222
Movements on other comprehensive
income 605 605
Net profit 431 101 532
Dividends paid (1,201) (69) (1,270)
Ordinary shares issued 9,316 9,316
Issue of convertible bond 533 533
At acquisition - 22 22
Translation (771) (11) (782)
Balance at September 2004 19,781 397 20,178
Ordinary Equity Non -
share portion of distribu-
capital and convertible table
premium bond reserves
US Dollar million
Balance at December 2002 1,120 - 16
Movements on other comprehensive
income
Net profit
Dividends paid
Ordinary shares issued 5
Translation 265 4
Balance at September 2003 1,390 - 20
Balance at December 2003 1,450 - 21
Movements on other comprehensive
income
Net profit
Dividends paid
Ordinary shares issued 1,369
Issue of convertible bond 82
At acquisition
Translation 113 -
Balance at September 2004 2,932 82 21
Attributable equity holders of the group
Other
Foreign compre-
currency hensive Retained
translation income earnings
US Dollar million
Balance at December 2002 43 (185) 449
Movements on other comprehensive
income (8)
Net profit 219
Dividends paid (296)
Ordinary shares issued
Translation (155) (15) 94
Balance at September 2003 (112) (208) 466
Balance at December 2003 (113) (304) 577
Movements on other comprehensive
income 92
Net profit 66
Dividends paid (180)
Ordinary shares issued
Issue of convertible bond
At acquisition
Translation (128) (2) 12
Balance at September 2004 (241) (214) 475
Attributable equity holders of the group
Minority
Total interest Equity
US Dollar million
Balance at December 2002 1,443 40 1,483
Movements on other comprehensive
income (8) (8)
Net profit 219 12 231
Dividends paid (296) (13) (309)
Ordinary shares issued 5 5
Translation 193 (2) 191
Balance at September 2003 1,556 37 1,593
Balance at December 2003 1,631 53 1,684
Movements on other comprehensive
income 92 92
Net profit 66 16 82
Dividends paid (180) (10) (190)
Ordinary shares issued 1,369 1,369
Issue of convertible bond 82 82
At acquisition - 3 3
Translation (4) (1) (5)
Balance at September 2004 3,055 61 3,116
The results have been prepared in accordance with International Financial
Reporting Standards (IFRS).
Notes
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 2003.
The interim group financial statements of AngloGold Ashanti Limited have been
prepared in accordance with International Financial Reporting Standards
(IAS34), South African Statements of Generally Accepted Accounting Practices
(AC127), in compliance with the JSE Securities Exchange South Africa 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 nine months ended 30
September 2004.
Where the presentation or classification of an item has been amended,
comparative amounts have 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.
2. Cost of sales
Quarter ended Nine months ended
Sept June Sept Sept
2004 2004 2004 2003
Unaudited Unaudited Unaudited Unaudited
SA Rand million
Cash operating costs 2,762 2,492 7,349 7,202
Other cash costs 97 80 236 193
Total cash costs 2,859 2,572 7,585 7,395
Retrenchment costs 12 7 44 13
Rehabilitation & other
non-cash costs 50 43 134 65
Production costs 2,921 2,622 7,763 7,473
Amortisation of mining
assets 660 600 1,706 1,284
Total production costs 3,581 3,222 9,469 8,757
Inventory change 70 (131) (146) (119)
3,651 3,091 9,323 8,638
Quarter ended Nine months ended
Sept June Sept Sept
2004 2004 2004 2003
Unaudited Unaudited Unaudited Unaudited
US Dollar million
Cash operating costs 434 378 1,122 923
Other cash costs 15 13 36 25
Total cash costs 449 391 1,158 948
Retrenchment costs 2 1 7 2
Rehabilitation & other
non-cash costs 7 7 19 8
Production costs 458 399 1,184 958
Amortisation of mining
assets 104 91 261 164
Total production costs 562 490 1,445 1,122
Inventory change 10 (20) (22) (15)
572 470 1,423 1,107
3. Taxation
Quarter ended Nine months ended
Sept June Sept Sept
2004 2004 2004 2003
Unaudited Unaudited Unaudited Unaudited
SA Rand million
Normal taxation (19) 49 108 489
Deferred taxation 89 33 259 410
Deferred tax on
unrealised non-hedge
derivatives and fair
value gains
(losses) on interest
rate swaps 1 (170) (243) 145
Taxation on exceptional
items 1 1 9 (106)
72 (87) 133 938
Quarter ended Nine months ended
Sept June Sept Sept
2004 2004 2004 2003
Unaudited Unaudited Unaudited Unaudited
US Dollar million
Normal taxation (3) 8 16 61
Deferred taxation 14 6 39 54
Deferred tax on
unrealised non-hedge
derivatives and fair
value gains
(losses) on interest
rate swaps 1 (28) (37) 21
Taxation on exceptional
items 1 (1) 1 (14)
13 (15) 19 122
4. Capital commitments
Sept June Dec Sept
2004 2004 2003 2003
SA Rand million
Orders placed and outstanding
on capital contracts at the
prevailing rate of exchange 1,005 885 650 864
Sept June Dec Sept
2004 2004 2003 2003
US Dollar million
Orders placed and outstanding
on capital contracts at the
prevailing rate of exchange 155 142 150 118
5. Shares
Quarter ended
Sept 2004 June 2004 Sept 2003
Authorised share capital:
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 778,896 778,896 778,896
Issued share capital:
Ordinary shares 264,439,294 264,403,394 222,946,842
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 264,412,359 253,046,275 222,772,159
Diluted number of ordinary
shares 279,796,974 268,430,890 223,817,500
Nine months ended
Sept 2004 Sept 2003
Authorised share capital:
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 778,896 778,896
Issued share capital:
Ordinary shares 264,439,294 222,946,842
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 246,954,457 222,772,159
Diluted number of ordinary
shares 259,138,623 223,817,500
During the quarter, 35,900 ordinary shares were allotted in terms of the
AngloGold Share Incentive Scheme. All the preference shares are held by a
wholly-owned subsidiary company.
6. Exchange rates
Sept 2004 June 2004 Dec 2003 Sept 2003
Rand/US dollar average
for the year to date 6.57 6.67 7.55 7.82
Rand/US dollar average
for the quarter 6.37 6.59 6.74 7.40
Rand/US dollar closing 6.48 6.23 6.67 6.94
Rand/Australian dollar
average for the year to
date 4.80 4.94 4.90 4.94
Rand/Australian dollar
average for the quarter 4.52 4.70 4.82 4.88
Rand/Australian dollar
closing 4.69 4.33 5.02 4.73
7. 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 USA Inc., is repaid.
8. Announcements
8.1 On 5 August 2004, AngloGold Ashanti announced the sale of its Union Reefs
assets to the Burnside Joint Venture, comprising subsidiaries of Northern
Gold NL (50%) and Harmony Gold Mining Company Limited (50%), for a total
consideration of A$4m. The Burnside Joint Venture is responsible for all
future obligations associated with the assets, including remaining site
rehabilitation and reclamation.
8.2 The government of Guinea advised AngloGold Ashanti on 25 August 2004 that
the embargo on the export of gold bullion from that country by AngloGold
Ashanti had been lifted.
8.3 In a joint announcement on 10 September 2004, AngloGold Ashanti confirmed
its agreement to sell its entire interest in Ashanti Goldfields Zimbabwe
Limited to Mwana Africa Holdings (Pty) Limited for a cash consideration of
$2.255m. The sole operating asset of Ashanti Goldfields Zimbabwe Limited is
the Freda-Rebecca Gold Mine.
8.4 On 11 October 2004 AngloGold Ashanti announced that it had signed an
agreement with Philippines explorer Red 5 Limited to subscribe for a 12.3%
stake in the expanded issued capital of Red 5 for a cash consideration of
A$5.5m. This placement will be used to fund the exploration activities
along strike from current mineral resources at the Siana Project, and to
test the nearby porphyry gold-copper targets in the Surigao region of the
Republic of the Philippines.
9. Dividend
Interim dividend No. 96 of 170 South African cents or 14.9591 UK pence or
2,484.82 cedis per share was paid to registered shareholders on 27 August 2004,
while a dividend of 7.7486 Australian cents per CHESS Depositary Interest (CDI)
was paid on the same day. On 30 August 2004, a dividend of 24.8482 cedis per
Ghanaian Depositary Share (GhDS) was paid to holders thereof. Each CDI
represents one-fifth of an ordinary share, and 100 GhDSs represents one
ordinary share. A dividend was paid to holders of American Depositary Receipts
(ADRs) on 7 September 2004 at a rate of 25.62 US cents per American Depositary
Share (ADS). Each ADS represents one ordinary share.
10. The group financial statements for the quarter and nine months ended 30
September 2004 were authorised for issue in accordance with a resolution of
the directors passed on 27 October 2004. AngloGold Ashanti is a limited
liability company incorporated in the Republic of South Africa.
11. 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 October 2004
Administrative information
ANGLOGOLD ASHANTI LIMITED
(formerly: AngloGold Limited)
Registration No. 1944/017354/06
Incorporated in the Republic of South
Africa
ISIN: ZAE000043485
Share codes:
JSE: ANG
LSE: AGD
NYSE: AU
ASX: AGG
GSE: AGA
Euronext Paris: VA
Euronext Brussels: ANG BB
JSE Sponsor: UBS
Auditors: Ernst & Young
Contacts
South Africa
Steve Lenahan
Telephone: +27 11 637 6248
Fax: +27 11 637 6400
E-mail:
slenahan@AngloGoldAshanti.com
Michael Clements
Telephone: +27 11 637 6647
Fax: +27 11 637 6400
E-mail:
mclements@AngloGoldAshanti.com
United States of America
Charles Carter
Telephone: (800) 417 9255 (toll free in
USA and Canada) or +1 212 750 7999
Fax: +1 212 750 5626
E-mail:
cecarter@AngloGoldAshanti.com
Australia
Andrea Maxey
Telephone: +61 8 9425 4604
Fax: +61 8 9425 4662
E-mail:
amaxey@AngloGoldAshanti.com.au
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
D L Hodgson
Dr S E Jonah KBE **
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 775947
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)
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 0001
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
POBox K1A 9563 Airport
Accra
Ghana
Telephone: +233 21 238492-3
Fax: +233 21 229975
ADR Depositary
The Bank of New York ("BoNY")
101 Barclay Street
22nd Floor
New York, NY 10286
United States of America
Telephone: +1 888 269 2377
Fax: +1 212 571 3050/3052
Global BuyDIRECTSM
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. For a discussion on such risk
factors, refer to AngloGold"s annual report on Form 20-F for the year ended 31
December 2003, which was filed with the Securities and Exchange Commission
(SEC) on 19 March 2004.
Date: 29/10/2004 07:51:22 AM Supplied by www.sharenet.co.za
Produced by the JSE SENS Department
Sharenet Sites 
