Wrap Text
ANG - Anglogold Ashanti Limited - Report to shareholders for the quarter and
year ended 31 December 2009
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
GhSE (Shares): AGA
GhSE (GhDS): AAD
Euronext Paris: VA
Euronext Brussels: ANG
JSE Sponsor: UBS
Report to shareholders for the quarter and year ended 31 December 2009
Group results for the quarter.
- Record adjusted headline earnings of $228m, or 62 US cents per share
- Production of 1.182Moz, 2% better than guidance
- TauTona back in production after successful inspection and repair
- Received gold price, excluding hedge buy-back costs, increased by 14% in US
dollar terms, discount of 6.4% to spot achieved
- Improvement on all benchmark safety indicators
- Geita and Obuasi continue turnaround
- Hedge commitments fall to 3.9Moz
.... and the year
- Gold production of 4.6Moz, at the top end of guidance
- Total cash costs of $514/oz, better than guidance
- Net debt falls to $868m, creating further financial flexibility
- Project One management intervention gaining traction across portfolio
- Uranium production of 1.44Mlbs exceeds guidance by 3%
- Hedge restructuring cuts commitments by 2.0Moz to less than one year`s
production
- Safety stoppages impact South African production
- Tropicana project in Australia progresses to a bankable feasibility study
- Final dividend of 70 South African cents per share (approximately 9.10 US
cents per share), declared, resulting in a total dividend of 130 South African
cents per share (approximately 16.75 US cents per share) for the 2009 year
Quarter
ended ended
Dec Sep
2009 2009
SA rand / Metric
Operating review
Gold
Produced - kg / oz (000) 36,767 36,925
Price received - R/kg / $/oz 247,985 61,095
Price received excluding hedge
buy-back costs - R/kg / $/oz 247,985 225,388
Total cash costs - R/kg / $/oz 143,596 133,274
Total production costs - R/kg / $/oz 178,379 166,355
Financial review
Adjusted gross profit (loss) - Rm / $m 2,521 (4,110)
Adjusted gross profit excluding
hedge
buy-back costs - Rm / $m 2,521 2,205
Profit (loss) attributable to
equity
shareholders - Rm / $m 3,179 (8,245)
- cents/share 867 (2,286)
Adjusted headline earnings (loss) - Rm / $m 1,706 (4,757)
- cents/share 466 (1,319)
Adjusted headline earnings (loss)
excluding hedge buy-back costs - Rm / $m 1,706 1,249
- cents/share 466 346
Cash flow from operating activities
excluding hedge buy-back costs - Rm / $m 3,610 2,185
Capital expenditure - Rm / $m 2,275 1,842
Year
ended ended
Dec Dec
2009 2008
SA rand / Metric
Operating review
Gold
Produced - kg / oz (000) 143,049 154,958
Price received - R/kg / $/oz 201,805 130,522
Price received excluding hedge
buy-back costs - R/kg / $/oz 246,048 185,887
Total cash costs - R/kg / $/oz 136,595 117,462
Total production costs - R/kg / $/oz 171,795 150,149
Financial review
Adjusted gross profit (loss) - Rm / $m 3,686 (2,945)
Adjusted gross profit excluding
hedge
buy-back costs - Rm / $m 10,001 5,072
Profit (loss) attributable to
equity
shareholders - Rm / $m (2,762) (16,105)
- cents/share (765) (5,077)
Adjusted headline earnings (loss) - Rm / $m (211) (7,197)
- cents/share (58) (2,269)
Adjusted headline earnings (loss)
excluding hedge buy-back costs - Rm / $m 5,795 69
- cents/share 1,604 22
Cash flow from operating activities
excluding hedge buy-back costs - Rm / $m 10,096 5,387
Capital expenditure - Rm / $m 8,726 9,905
Quarter
ended ended
Dec Sep
2009 2009
US dollar / Imperial
Operating review
Gold
Produced - kg / oz (000) 1,182 1,187
Price received - R/kg / $/oz 1,029 261
Price received excluding hedge
buy-back costs - R/kg / $/oz 1,029 906
Total cash costs - R/kg / $/oz 598 534
Total production costs - R/kg / $/oz 743 667
Financial review
Adjusted gross profit (loss) - Rm / $m 337 (510)
Adjusted gross profit
excluding hedge
buy-back costs - Rm / $m 337 287
Profit (loss) attributable to
equity
shareholders - Rm / $m 424 (1,042)
- cents/share 116 (289)
Adjusted headline earnings
(loss) - Rm / $m 228 (596)
- cents/share 62 (165)
Adjusted headline earnings
(loss)
excluding hedge buy-back costs - Rm / $m 228 162
- cents/share 62 45
Cash flow from operating
activities
excluding hedge buy-back costs - Rm / $m 465 336
Capital expenditure - Rm / $m 293 232
Year
ended ended
Dec Dec
2009 2008
US dollar / Imperial
Operating review
Gold
Produced - kg / oz (000) 4,599 4,982
Price received - R/kg / $/oz 751 485
Price received excluding hedge
buy-back costs - R/kg / $/oz 925 702
Total cash costs - R/kg / $/oz 514 444
Total production costs - R/kg / $/oz 646 567
Financial review
Adjusted gross profit (loss) - Rm / $m 412 (384)
Adjusted gross profit
excluding hedge
buy-back costs - Rm / $m 1,208 626
Profit (loss) attributable to
equity
shareholders - Rm / $m (320) (1,195)
- cents/share (89) (377)
Adjusted headline earnings
(loss) - Rm / $m (50) (897)
- cents/share (14) (283)
Adjusted headline earnings
(loss)
excluding hedge buy-back costs - Rm / $m 708 19
- cents/share 196 6
Cash flow from operating
activities
excluding hedge buy-back costs - Rm / $m 1,299 584
Capital expenditure - Rm / $m 1,027 1,201
$ represents US dollar, unless otherwise stated.
Rounding of figures may result in computational discrepancies.
Operations at a glance
for the quarter ended 31 December 2009
Production
%
oz (000) Variance 1
SOUTHERN AFRICA
South Africa 448 (7)
Great Noligwa 34 (19)
Kopanang 102 11
Moab Khotsong 73 18
Tau Lekoa 34 10
Surface Operations 36 (10)
Mponeng 127 2
Savuka 2 100
TauTona 25 (66)
Namibia
Navachab 17 6
CONTINENTAL AFRICA
Ghana 401 3
Iduapriem 54 4
Obuasi 97 5
Guinea
Siguiri - Attributable 85% 77 (3)
Mali
Morila - Attributable 40% 2 31 (3)
Sadiola - Attributable 41% 2,3 32 -
Yatela - Attributable 40% 2 28 27
Tanzania
Geita 81 (2)
Non-controlling interests, exploration and other
AUSTRALASIA
Australia 107 5
Sunrise Dam 107 5
Exploration and other
SOUTH AMERICA
Argentina 170 8
Cerro Vanguardia - Attributable 92.50% 47 -
Brazil
AngloGold Ashanti Brasil Mineracao 97 8
Serra Grande - Attributable 50% 27 35
Non-controlling interests, exploration and other
NORTH AMERICA
United States of America 56 4
Cripple Creek & Victor 56 4
Other
OTHER
Sub-total 1,182 -
Less equity accounted investments
AngloGold Ashanti
Total cash costs
%
$/oz Variance 1
SOUTHERN AFRICA
South Africa 575 10
Great Noligwa 1,014 11
Kopanang 400 (10)
Moab Khotsong 489 2
Tau Lekoa 732 (8)
Surface Operations 459 13
Mponeng 397 6
Savuka 4,062 (59)
TauTona 1,443 188
Namibia
Navachab 730 19
CONTINENTAL AFRICA
Ghana 665 8
Iduapriem 515 4
Obuasi 567 (15)
Guinea
Siguiri - Attributable 85% 636 27
Mali
Morila - Attributable 40% 2 656 17
Sadiola - Attributable 41% 2,3 640 20
Yatela - Attributable 40% 2 382 74
Tanzania
Geita 1,055 19
Non-controlling interests, exploration and other
AUSTRALASIA
Australia 863 32
Sunrise Dam 836 29
Exploration and other
SOUTH AMERICA
Argentina 386 11
Cerro Vanguardia - Attributable 92.50% 339 1
Brazil
AngloGold Ashanti Brasil Mineracao 419 26
Serra Grande - Attributable 50% 337 (24)
Non-controlling interests, exploration and other
NORTH AMERICA
United States of America 424 4
Cripple Creek & Victor 420 7
Other
OTHER
Sub-total 598 12
Less equity accounted investments
AngloGold Ashanti
Adjusted gross profit (loss)
excluding hedge buy-back
costs
$m
$m Variance 1
SOUTHERN AFRICA
South Africa 123 5
Great Noligwa (8) (1)
Kopanang 46 19
Moab Khotsong 13 5
Tau Lekoa 10 7
Surface Operations 19 (2)
Mponeng 70 10
Savuka (8) 3
TauTona (25) (40)
Namibia
Navachab 5 2
CONTINENTAL AFRICA
Ghana 118 36
Iduapriem 26 10
Obuasi 26 18
Guinea
Siguiri - Attributable 85% 30 4
Mali
Morila - Attributable 40% 2 13 2
Sadiola - Attributable 41% 2,3 12 2
Yatela - Attributable 40% 2 17 3
Tanzania
Geita (13) (5)
Non-controlling interests, exploration and other 6 1
AUSTRALASIA
Australia 8 (3)
Sunrise Dam 11 (1)
Exploration and other (3) (2)
SOUTH AMERICA
Argentina 93 6
Cerro Vanguardia - Attributable 92.50% 19 (10)
Brazil
AngloGold Ashanti Brasil Mineracao 46 5
Serra Grande - Attributable 50% 14 7
Non-controlling interests, exploration and other 14 4
NORTH AMERICA
United States of America 27 6
Cripple Creek & Victor 28 6
Other (1) -
OTHER 11 9
Sub-total 380 59
Less equity accounted investments (43) (8)
AngloGold Ashanti 337 50
1 Variance December 2009 quarter on September 2009 quarter - increase
(decrease).
2 Equity accounted joint ventures.
3. Effective 29 December 2009, AngloGold Ashanti increased its interest in
Sadiola from 38% to 41%.
Rounding of figures may result in computational discrepancies.
Financial and Operating Report
OVERVIEW FOR THE QUARTER
SAFETY
AngloGold Ashanti`s focus on improving safety standards over the long -term
yielded encouraging results during the quarter with a 7% improvement in the
overall lost time injury rate. Moab Kho tsong operated without a fatality for 1
million shifts, an overwhelmingly positive result for the South African
operating teams.
Safety stoppages - both those enforced by the state mine inspector and
implemented by AngloGold Ashanti`s management - remained a key theme during the
three-month period, with 69 shifts lost at the South African operations. This
figure includes 40 shifts lost at TauTona, which remained closed for much of
the fourth quarter for a thorough inspection of the entire shaft infrastruct
ure. The review yielded no material deficiencies in the underground steelwork
and the mine was successfully reopened in January.
Tragically, one miner was fatally injured at Mponeng, in South Africa and
another died in a trucking accident at Siguiri, in Guinea. These incidents
underscore the importance of implementing the company`s Safety Transformation
Blueprint in 2009, a comprehensive strategy for the next step change in
AngloGold Ashanti`s overall safety performance that will take the company
toward its goal of eliminating lost time injuries.
OPERATING REVIEW
Production was broadly in line with the previous quarter at 1.18Moz, which was
better than the guidance of 1.16Moz. The slightly lower output
quarter-on-quarter reflects the management enforced stoppage at TauTona,
remedial work underway at Savuka for part of the year and continued safety
related stoppages.
Total cash costs rose 12% to $598/oz, some 1% above market guidance due mainly
to accounting for deferred stripping charges and a stronger -than-anticipated
exchange rate. Sustained strength in local operating currencies in Brazil,
Australia and South Africa continued to erode the benefit of a higher dollar
gold price. The Australian dollar was the best performer of this group, gaining
9% over the period, while the Brazilian real rose 7% and the rand 4%.
Southern African operations produced 448,000oz in the three months ended
December at a total cash cost of $575/oz, compared to 483,000oz at $525/oz in
the previous quarter. TauTona`s stoppage was the chief contributor to lower
production from the West Wits operations as the number of shifts lost to
safety-related interruptions more than doubled. Great Noligwa`s production also
declined sharply as the mine`s operations were scaled back in preparation for
management interventions designed to address the steep escalation in operating
costs that took place during 2009. Grade improvements contributed towards
increased production and lower costs at Kopanang and Tau Lekoa.
Continental Africa`s production improved to 401,000oz in the three months end
ed December at a total cash cost of $665/oz, from 391,000oz at $615/oz in the
previous quarter. Production improved at three of the seven operations and was
unchanged at Sadiola. Obuasi`s operating performance continued to improve
during the quarter, as a result of continued focus on grade control. The
company received an insurance settlement covering the previous quarter`s
underground flooding. At Geita where operational improvements are underway as
part of the company`s business improvement initiatives , volumes mined
increased by 14%. Total cash costs, however, were distorted by stripping
charges during the quarter.
In Australasia, Sunrise Dam`s production rose to 107,000oz at a total cash cost
of $836/oz, from 102,000oz at $647/oz in the prior quarter. Total cash costs
have been inflated by deferred waste stripping charges during the quarter.
In North America, Cripple Creek & Victor`s (CC&V) production rose to 56,000oz
at a total cash cost of $420/oz for the three months to December, from 54,000oz
at $394/oz in the previous quarter. The operation has stabilised under its new
leadership, and is now well position ed for recovery during 2010.
South America`s production improved to 170,000oz at a total cash cost of
$386/oz in the three months ended December, from 157,000oz at $349/oz.
AngloGold Brasil Mineracao delivered an especially strong performance, boosting
output from the Cuiaba and Lamego operations which helped offset the impact on
costs of the continued strengthening of the Brazilian real. Cerro Vanguardia
held its production and costs steady over the quarter, making it the most
efficient operation in the group.
FINANCIAL AND CORPORATE REVIEW
Adjusted headline earnings for the quarter rose to a record $228m, from a loss
of $596m in the prior quarter, when significant restructuring of the hedge book
was undertaken. The previous quarter`s profit, excluding the hedge buy-back
costs, was $162m.
The average realised gold price for the quarter was $1,029/oz, representing a
6.4% discount to the average spot price of $1,100/oz. Delivery into hedge
contracts continued at a slightly quicker pace than anticipated, with overall
hedge commitments at the end of 2009 of 3.9Moz. This is significantly less than
a year`s production and is consistent with the stated intention of increasing
AngloGold Ashanti`s exposure to the spot gold price.
Profit attributable to equity shareholders was $424m for the quarter, compared
to a loss of $1.04bn during the prior period. Two key components of this change
were the partial reversal of asset impairments at Geita, Obuasi and Iduapriem
after taking into account the higher gold price and revised mining plans across
the operations, as well as the loss in the prior quarter relating to the hedge
buy-back and the normal sale exempted contracts brought on to the balance
sheet.
EXPLORATION
Total exploration spend during the quarter was $ 71m, an increase of 30% over
the previous quarter. Extensive greenfields exploration work was undertaken in
Western Australia, throughout the tenement package near the Tropicana Gold
Project. While the approval process for recommencement of drilling at La
Colosa continued with regional government officials, exploration drilling and
regional reconnaiss ance work got underway on alternative project sites in the
country. Exploration drilling also resumed during November at the Mongbwalu
resource in the Democratic Republic of the Congo, while additional mapping was
done southwest of the site.
ANNUAL REVIEW
Adjusted headline earnings, normalised to exclude the $758m after tax cost of
restructuring the hedge book in the third quarter, was $708m for the year. The
company reported an adjusted headline loss of $50m, when taking the hedge
restructuring cost into account. A dividend of 70 South African cents
(approximately 9.10 US cents per share) was declared for the six months ended
31 December 2009, an increase of 17% from the previous declaration, taking the
total dividend for the year to R1.30 (approximately 16.75 US cents) per share,
representing a 30% increase over the 2008 dividend.
The statement of financial position was significantly strengthened during the
year with the raising of a $732.5m convertible bond in May, the proceeds from
which were used to repay debt and an issue of new shares for $278m, net of
issue expenses, in cash in September, to fund the initial purchase of a 35%
stake in the Kibali gold project (formerly Moto gold project). AngloGold
Ashanti`s stake was later increased to 45%, with Randgold Resources controlling
another 45% and the Government of the Democratic Republic of the Congo holding
10%. Net debt at 31 December 2009 was $868m, some $415m lower than the net debt
position as at 31 December 2008.
Production in 2009 declined 8% to 4.60Moz, in line with revised guidance.
Southern Africa`s production declined by 14% to 1.86Moz, reflecting the
increased number of safety-related stoppages resulting from more stringent
policing of safety regulations as well as the proactive approach by the
company`s managers to averting accidents. Production during the year from
Continental Africa fell by 3% to 1.52Moz as improvements at Geita and Obuasi
offset declines from Sadiola and Morila. In South America, production jumped by
6% to 598,000oz, with a strong turnaround from Argentina, the chief
contributor. CC&V in North America. suffered from below-par recoveries from the
leach pad, resulting in a 16% drop in production to 218,000oz.
Total cash costs were better than forecast, rising 16% to $514/oz. T he
strengthening of the local operating currencies against the dollar during the
course of the year was a dominant theme for operations in South Africa,
Australia and Brazil, increasing dollar-denominated operating costs in those
regions. Rising power prices were also a key factor in South Africa, where
management continued to focus its efforts on reducing electricity consumption
in order to mitigate higher tariffs. Robbie Lazare, formerly the executive vice
president of human resources and a previous head of AngloGold Ashanti`s
Africa`s underground operations, has been appointed to lead a task team that
will optimise the production and cost profile of the South African mines.
AngloGold Ashanti`s overall safety performance in 2009 showed improvements in
the benchmark Lost Time Injury Frequency Rate (LTIFR), which was 10% better
than the previous year at 6.57 per million hours worked. Tragically, 16 fatal
accidents were reported during the year. That compared to 34 in 2007 and 14 in
2008, when the "Safety is Our First Value" initiative was first introduced.
This encouraging improvement in safety was demonstrated by Great Noligwa`s
achievement, during the third quarter, of 2 million fatality free shifts. This
is the first time Great Noligwa has reached this milestone in its 40-year
history. AngloGold Ashanti remains committed to achieving zero fatalities.
The year was characterised by the progress made in the turnaround of key
assets, though there remains much to do to realise the full potential of the
portfoli o. Initial implementation of AngloGold Ashanti`s business improvement
programme yielded encouraging results at Geita, the Mponeng plant, Sunrise Dam,
Siguiri and AngloGold Ashanti Brasil Mineracao. This programme is the technical
component of Project One, the overarching strategy which will marry the
company`s technical and planning capabilities with a more scientific and
accountability-based approach to human resources management. The complexity of
this programme is evidenced by its $35m budgeted cost and the 130-member,
multi-disciplinary support team required for its implementation across the
organisation. The potential value release, already demonstrated at the pilot
sites, is many times that figure.
In 2010, the business improvement programme will be r olled out to an
additional 12 sites, including: Mponeng and Kopanang underground mines; the
Iduapriem plant; Obuasi mine and plant; Cerro Vanguardia and Serra Grande mine
and plants; the CC&V mine; TauTona and Moab Khotsong underground mines;
Navachab mine and plant; Great Noligwa uranium plant; and the Kopanang plant.
AngloGold Ashanti concluded the sale of Boddington during 2009 which resulted
in the transfer of about 6.7Moz of Ore Reserves to Newmont Mining Corporation.
After accounting for the Bodding ton sale, AngloGold Ashanti recorded a 5%
increase in Ore Reserves from 68.2Moz to 71.4Moz. AngloGold Ashanti`s share of
the Kibali Ore Reserves, acquired with the purchase of a 45% share in Kibali
gold project during the year, increased to 4.2Moz from the 2.48Moz attributable
share in the initial study conducted by the previous owner.
Mineral Resources declined by 1% to 229.1Moz after the transfer of 11.9Moz for
the Boddington sale. The Kibali gold project added 8.9Moz to the overall
Mineral Resource, offset by a 7.8Moz reduction at Obuasi due to a change in the
underground model and a reassessment of surface sources, as well as a 3.2Moz
drop at the Vaal River Surface Operations due to the lower uranium price.
OUTLOOK
First quarter production is expected to be 1.07Moz at a total cash cost of
approximately $660/oz. This assumes an oil price of $75/barrel and average
exchange rates of R 7.70/$, BRL1.70/$, A$/$0.93 and Argentinean peso 3.90/$.
AngloGold Ashanti`s annual production guidance for 2010 is 4.5Moz to 4.7Moz.
This reflects the sale of Tau Lekoa, cautious assumptions regarding the
frequency of safety related stoppages in South Africa, and from CC&V as the
grade stabilises in 2010 which affected recoveries from the leach pad in 2009.
Capital expenditure for 2010 is estimated at US$1.0bn to US$1.1bn.
ONE-YEAR FORECAST - 2010
For the year ended 31 December
Forecast Expected
production total cash
000 oz cost
(1)
$/oz
(2)(3)
South Africa 1,722 - 1,800 553 - 571
Namibia 96 - 100 600 - 628
Ghana 593 - 619 562 - 588
Guinea 295 - 308 527 - 552
Mali 265 - 277 663 - 695
Tanzania 339 - 354 833 - 872
Australia 381 - 398 901 - 943
Argentina 176 - 184 411 - 430
Brazil 419 - 437 424 - 444
United States of America 214 - 223 480 - 503
AngloGold Ashanti 4,500 - 4,700 590 - 615
(1) Based on the following assumptions: R7.70/$, A$/$0.93, BRL1.70/$ and
Argentinean peso 3.90/$; oil at $75 per barrel. The year on year increase in
total cash costs is due to the unwinding of previously incurred deferred
stripping charges, implementation of royalties in South Africa, higher power
tariffs, escalation and stronger local operating currencies.
(2) In South Africa, production assumes stable power supply from Eskom and 38
South African cents/Kwh. An increase in power tariffs of 35% has been
considered.
(3) Excludes Tau Lekoa
(4) AngloGold Ashanti anticipates a discount to the spot gold price of 8% to
10% based on a gold price of $950/oz to $1,250/oz
OTHER ILLUSTRATIVE ESTIMATES - 2010
For the year ended 31 December
$m
Depreciation and amortisation 700
Corporate costs, marketing and business improvement 210
Expensed exploration and pre-feasibilities 216
Interest and finance charges 120
Review of the Gold Market
1. GOLD PRICE MOVEMENT AND INVESTMENT MARKETS
1.1. Gold price data
After breaching the psychologically significant $1,000/oz level for a brief
period in the third quarter, the gold price traded comfortably above this mark
for the entire fourth quarter during which it averaged $1,100/oz. This
represented a 15% increase on the previous quarter. The price appreciated 26%
from its opening levels of $872/oz at the beginning of 2009 to close the year
at $1,102/oz.
It was at the beginning of November that the rally was most pronounced, spurred
by the Reserve Bank of India`s purchase of 200t of bullion from the
International Monetary Fund`s sales quota. The purchase surprised the market as
India had not been viewed as a likely buyer and it proved the catalyst that
drove the price to new heights.
The peak of $1,226/oz in early December corresponded with record combined
investment holdings of 56.6Moz held by exchange traded funds and a record
speculative long position on the COMEX division of the New York Mercantile
Exchange and the Chicago Board of Trade of almost 33Moz.
This rally did not, however, coincide with record lows in the dollar, as one
might have expected. Instead, the dollar traded in a tight range between $1.47
and $1.51/Euro, helping propel gold to a record Euro812/oz.
This upward march in prices took place against a backdrop of continued economic
uncertainty. In December, fears over the creditworthiness of certain European
member states resurfaced while Dubai flirted with default. This boosted the
relative strength of the dollar, which gained another fillip from positive jobs
data in the United States. The US dollar ended the quarter at $1.429 /Euro, a
6% gain from its lows of the quarter. Gold meanwhile closed 10% off its
quarterly high at $1,102/oz.
1.2. Official Sector
The central banks of Sri Lanka and Mauritius joined India in adding to their
gold reserves during the quarter. The Mauritian central bank bought 2t from the
IMF, while Sri Lanka said it had bought 10t of gold as part of an ongoing
initiative to increase its reserves. Since the renewal of the Central Bank Gold
Agreement in September, there have been only two tonnes of disposals from
member signatories in the first quarter of this third agreement.
1.3. Producer de-hedging
Barrick Gold Corp eliminated the last of their hedge commitments during the
fourth quarter following their announcement in August of their intention to do
so. The completion of the hedge close-out which was announced on 1 December,
required the purchase of about 5Moz.
1.4. Currencies
Emerging markets were the beneficiaries of strong metals and commodity prices
and remained the focus of investors eager to earn yield.
The South African rand continued its strengthening trend during the fourth
quarter , shaking off a short-lived bout of weakness between late October and
early November where it slipped by 10% against the dollar. The rand soon
recouped these losses and averaged R7.47/$ during the fourth quarter, a further
4% appreciation on the previous quarter. The rand gained 21% against the dollar
during the year.
The Brazilian real also continued its appreciation against the greenback.
Lawmakers in Brazil were sufficiently concerned about the effects of the
stronger currency to levy a tax on foreign purchases of domestic stocks and
securities. This did little to deter speculative inflows as the real gained an
average 7% from the previous quarter. The currency gained 25% over the year.
The Australian dollar rose to a peak of A$/$0.94, reflecting the healthy state
of the economy. The Reserve Bank of Australia started tightening monetary
policy, hiking rates 0.25% each month during the fourth quarter. The currency
averaged A$/$0.91 for the fourth quarter, almost 10% stronger than its third
quarter average. The A$ appreciated 28% over the course of 2009 against its US
counterpart.
2. PHYSICAL DEM AND
2.1. Jewellery Sales
While the negative trend of the first nine months continued in most major
markets during the fourth quarter, there were some areas of growth around the
festive season.
The crucial Indian market remained under pressure in the fourth quarter
although there was some good news. Gold imports during the period exceeded
those of the same quarter a year earlier. India`s gold jewellery trade
benefitted from a relatively good Diwali, which is a traditional gifting
occasion. Disposable income increased during the period after bonuses were paid
across the massive Indian public sector. The strong Diwali sales are all the
more heartening considering a difficult 2009 monsoon season, which depressed
sales. The Rupee gold price remains very high at over INR17,500/oz, which
continues to dampen demand. Consumers appear to have accepted the new, much
higher, price floor but many are making only essential wedding purchases until
the economy stabilises. Jewellers are following the trend prevalent among
producers of fast moving consumer goods of decreasing the weight of product
rather than raising prices.
China continues to outperform other key jewellery markets. Still, sales in the
fourth quarter were flat or slightly better than the same period in 2008.
Consumers continue to prefer the investment appeal of pure gold jewellery. In
covering the financial crisis, the Chinese media repeatedly featured stories on
the gold price and consumers continue to take note, with `smart` shoppers
limiting their jewellery purchases to pure gold.
The market in the United States finally experienced much-needed good news as
fourth quarter jewellery sales beat expectations with a 7% year-on- year
increase. Interestingly, the improvement in jewellery sales over the holiday
season exceeded that of the luxury sector, another major laggard during the
recession.
The global economic recession continued to harm the Middle Eastern jewellery
market. Egypt`s jewellery sales slumped by as much as 32% year-on-year and the
United Arab Emirates fell 30%. The crucial UAE tourist industry, which has been
depressed throughout the year, showed a welcome improvement this quarter. This
helped jewellery s ales and left retailers more bullish about 2010, with many
increasing inventories for the first time in months. In Saudi Arabia,
fourth-quarter sales were depressed on the back of continued pressure on
consumers resulting from the recession and also a weak er than normal Hajj
period. Gold jewellery demand fell by approximately 35% year-on-year.
2.2. Investment Market
Interestingly, at the end of 2009 gold investment demand exceeded gold
jewellery demand for the first time since the gold price reached a record price
of $850/oz in 1980.
In India, the fourth quarter saw strong coin sales continue the trend
established in the first three quarters of the year. Gold-based mutual funds
also saw increased deposits. For many Indian consumers, who already hold
substantial gold assets, there is no clear investment case for adding gold to
their portfolios at the current high price. India is unique in this regard as
it has a far bigger existing gold supply, held by a bigger pool of people, than
any other gold market.
The US market continued its rally with the case for gold investment gaining
traction with both retail investors and institutions. The fourth quarter saw
healthy demand for bars, coins and Exchange Traded Funds (ETFs). The GLD ETF
represents approximately $66bn of direct investment in the gold market. There
is now also talk of significant bar purchases by some of the larger buyers
which are opting for bullion rather than paying the storage and management fees
charged by the ETF issuers.
China`s retail gold investment outpaced jewellery demand with a 10%
year-on-year gain in the fourth quarter. The traditional Chinese gold jewellery
market is 24 carat, therefore jewellery demand - which includes an investment
motivation - still exceeds gold investment dem and by a factor of four to one.
Gold investment demand in the Middle East remains the most moribund of all
major regional markets. In the United Arab Emirates, the decline in coin and
bar hoarding mirrors the decline in jewellery demand, with a 30% slump. Many
jewellers and key retail invest ors did not stock bars or coins due to price
volatility and low margins. In Egypt, bar and coin demand was poor, at an
estimated 250kg during the quarter, while bullion imports were low. Scrap
supply slowed despite the high gold price as traders were wary of price
volatility.
Hedge position
As at 31 December 2009, the net delta hedge position was 3.49Moz or 10 8t (at
30 September 2009: 3.93Moz or 122t), representing a further reduction of 0.4
4Moz for the quarter. The total commitments of the hedge book as at 31 December
2009 was 3.9Moz or 121t, a reduction of 0.4Moz from the position as at 30
September 2009.
The marked-to-market value of all hedge transactions making up the hedge
positions was a negative $2. 18bn (negative R16.18bn), increasing by $0.34bn
(R2.35bn) over the quarter. This value was based on a gold price of $1
,101.95/oz, exchange rates of R7.4350/$ and A$/$0.8967 and the prevailing
market interest rates and volatilities at that date.
As at 16 February 2010, the marked-to-market value of the hedge book was a
negative $2.11bn (negative R16.21bn), based on a gold price of $1,112.45/oz and
exchange rates of R7.6910/$ and A$/$0.8952 and the prevailing market interest
rates and volatilities at the time.
These marked-to-market valuations are in no way predictive of the future value
of the hedge position, nor of future impact on the revenue of the company. The
valuation represents the theoretical cost of buying all hedge contracts at the
time of valuation, at market prices and rates available at the time.
The following table indicates the group`s commodity hedge position at 31
December 2009
Year 2010 2011 2012
US DOLLAR/GOLD
Forward contracts Amount (oz) *(435,142) 60,000 122,500
US$/oz *$909 $227 $418
Put options sold Amount (oz) 475,860 148,000 85,500
US$/oz $929 $623 $538
Call options sold Amount (oz) 1,065,380 776,800 811,420
US$/oz $619 $554 $635
RAND/GOLD
Forward contracts Amount (oz) **(40,000)
ZAR/oz R7,223
Put options sold Amount (oz) 40,000
ZAR/oz R7,475
Call options sold Amount (oz) 40,000
ZAR/oz R8,175
A DOLLAR/GOLD
Forward contracts Amount (oz) 100,000
A$/ oz A$646
Call options
purchased Amount (oz) 100,000
A$/ oz A$712
*** Total net
gold: Delta (oz) (436,666) (789,849) (863,406)
Committed (oz) (630,238) (836,800) (933,920)
Year 2013 2014
US DOLLAR/GOLD
Forward contracts Amount (oz) 119,500 91,500
US$/oz $477 $510
Put options sold Amount (oz) 60,500 60,500
US$/oz $440 $450
Call options sold Amount (oz) 574,120 680,470
US$/oz $601 $604
RAND/GOLD
Forward contracts Amount (oz)
ZAR/oz
Put options sold Amount (oz)
ZAR/oz
Call options sold Amount (oz)
ZAR/oz
A DOLLAR/GOLD
Forward contracts Amount (oz)
A$/ oz
Call options purchased Amount (oz)
A$/ oz
*** Total net gold: Delta (oz) (651,962) (719,638)
Committed (oz) (693,620) (771,970)
Year 2015 Total
US DOLLAR/GOLD
Forward contracts Amount (oz) *(41,642)
US$/oz *$5,457
Put options sold Amount (oz) 830,360
US$/oz $764
Call options sold Amount (oz) 29,000 3,937,190
US$/oz $670 $605
RAND/GOLD
Forward contracts Amount (oz) **(40,000)
ZAR/oz R7,223
Put options sold Amount (oz) 40,000
ZAR/oz R7,475
Call options sold Amount (oz) 40,000
ZAR/oz R8,175
A DOLLAR/GOLD
Forward contracts Amount (oz) 100,000
A$/ oz A$646
Call options purchased Amount (oz) 100,000
A$/ oz A$712
*** Total net gold: Delta (oz) (26,258) (3,487,779)
Committed (oz) (29,000) (3,895,548)
* Represents a net long position and net short US Dollars resulting from both
forward sales and purchases for the period.
** Represents a net long position resulting from both forward sales and
purchases.
*** 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 31
December 2009.
Fair value of derivative analysis by accounting designation at
31 December 2009
Cash flow hedge Non-hedge Total
Figures in millions accounted accounted
US Dollar
Commodity option contracts - (1,987) (1,987)
Forward sale commodity contracts (37) (158) (195)
Interest rate swaps - (13) (13)
Total hedging contracts (37) (2,158) (2,195)
Embedded derivatives - (1) (1)
Warrants on shares - 5 5
Option component of convertible bond - (175) (175)
Total derivatives (37) (2,329) (2,366)
-
Credit risk adjustment (150) (150)
Total derivatives - before credit
risk adjustment (37) (2,479) (2,516)
Rounding of figures may result in computational discrepancies.
Exploration
Total exploration expenditure during the fourth quarter, inclusive of
expenditure at equity accounted joint ventures, was $71m ($29m brownfields,
$25m greenfields, $17m studies), compared with $55m ($22m brownfields, $29m
greenfields, $4m studies) in the previous quarter.
BROWNFIELDS EXPLORATION
In South Africa, surface drilling continued in the Project Zaaiplaats area.
MMB5 deflection 5, intersect the Jersey Fault. Deflection 7 is now being
drilled to intersect the Vaal Reef. MZA9 continued drilling a long deflection
but technical issues resulted in deflection 19 being stopped. Deflection 23 is
now being drilled and the first reef intersection is now expected in May 2010.
The long deflection from MGR6 continued drilling and the hole is currently at a
depth of 2,397m. The Vaal Reef is expected to be intersected in July 2010.
Progress on MGR8 was slow due to weak rock formations. The hole is currently at
3 ,020m and a reef intersection is anticipated in February 2010.
In the Western Ultra Deep Levels area, UD51 intersect a partly artesian
fracture system and this has significantly reduced the advance. The hole is
currently at a depth of 2 ,796m and a Ventersdorp Contact reef intersection is
expected in June 2010.
At Obuasi in Ghana, no drilling was undertaken on 50 Level due to flooding.
Once dewatering is complete rehabilitation of the planned drill sites will be
required prior to the recommencement of drilling operations.
In Argentina, Mineral Resource definition drilling continued on the Osvaldo
Diez, El Trio and Laguna Veins.
Underground definition drilling continued at Osvaldo Diez.
Sampling, mapping and geological recognisance continued in the Volcan Area and
the aeromagnetic survey of the sector started with some interesting structural
trends identified. The survey was delayed by an unfortunate helicopter incident
which damaged the probe.
In Australia, at Sunrise Dam, drilling continued to infill and extend both
surface and underground lodes. Underground targets included GQ, Cosmo, Dolly
and extensions to all these bodies. Surface targets included the paleochannel,
Golden Delicious, Neville and the north ramp. Opportunities have also been
identified for other open pittable satellite targets and drilling has started
at Wilga.
In Brazil, at the Corrego do Sitio Sulphide Project, drilling continued with
3,975m being drilled from surface, 8,299m drilled from underground and 1,047m
of underground development. At the Lamego project, 2,721m of surface drilling
and 1,137m of underground developm ent were completed. For Cuiaba, 4,278m of
drilling was completed. At Serra Grande drilling focused on the Cajuerio,
PequizAGBPo and Palmeiras targets . During the quarter drilling with the
Devidrill
system was successfully tested.
At Kibali in the Democratic Republic of the Congo, a review of the structural
and lithological controls on mineralisation was completed over the KCD deposit.
Drilling also concentrated on investigating the possible linking of the KCD
deposit with Gorumbwa at depth.
Work focused on:
- resource drilling (44 holes completed, 8,484m);
- core review of selected KCD holes (60 holes) and geological modelling;
- surface mapping of the KCD - Gorungwa areas;
- the completion of two diamond drill holes (1,556m) in the KCD - Gorumbwa gap;
- on-going soil geochemistry over the block 1, west of KCD, 4 new anomalies
identified;
- sampling of the old Durba mill (251 samples); and
- first pass geological aeromagnetic interpretation.
At Mongbwalu, a programme of diamond drilling commenced during the fourth
quarter, with six PQ sized holes being completed to enable sample collection
for metallurgical test work. In addition the first of ten diamond drill holes
was completed as part of the geotechnical sampling programme. A further 1,230m
of geotechnical drilling is planned to be completed early in the first quarter
of 2010. This will be followed by an RC and diamond drilling infill drilling
programme to allow the upgrading of the current Inferred Mineral Resource to
Indicated status in support of the small scale mine feasibility study.
At Siguiri in Guinea, work was completed on the Sintroko South Extension, the
Combined Pits area, Komatigiuya and Sintroko. The Komatigiuya target represents
a significant new discovery. Work continues in the Tubani area with infill
drilling between the marginal ore stockpile and pit.
IP Geophysical equipment arrived on site and a test self -potential (SP) survey
over Sintroko South was completed. Results are promising with IP anomalies
co-incident with known mineralisation. Future surveys will include Tubani and
the rest of the Sintroko area.
At Geita in Tanzania, IP geophysical surveys were carried out on Area 3 but
have been put on hold until January 2010 in order to support the core re-boxing
and re-logging programmes and the gyro-survey teams working on the NY7 infill
drilling programme.
The original Central Thrust Ramp geological modeling programme has been
redesigned to focus on the Nyankanga deposit. At the end of the quarter a total
of 45,848m have been relogged and modeling is ongoing.
The infill drilling programme at Nyankanga Cut 7 was completed in December. A
total of 16,727m was drilled. Logging and sampling should be completed in
January 2010.
At Yatela in Mali, drilling continued with the aim of extending the life of the
Yatela and Alamoutala open pits. Results to date have been encouraging and
remodeling of the ore bodies, which is ongoing, is expected to increase the
mine life. A further 7,500m of drilling has been approved to extend this work
in 2010.
The Sadiola Deeps infill drilling commenced in December with two diamond drill
holes (582m) and three RC holes (560m) being completed. Further drilling was
also undertaken to infill the FE3/FE4 pit gap , and all holes have been sampled
and submitted for assay, results are awaited.
Due to the seasonal weather conditions , the ground gravity survey was
suspended and will recommence in January 2010. A high resolution aeromagnetic
and radiometric survey was completed over the Sadiola and Yatela mining lease
areas.
At Navachab in Namibia, the on mine exploration drilling programme concentrated
on the North Pit 2 Footwall vein extensions. Off mine drilling was conducted on
both the Klipspringer and Steenbok/Starling targets. Assay results from these
programmes are awaited. A gradient IP survey was completed over the Anomaly 16
prospect. The results indicate the potential for significant sulphide
mineralisation and several drill targets were recommended.
At Cripple Creek & Victor in the United States of America, resource extension
drilling continued during the quarter. Drilling and studies continue to
quantify the potential of the high grade Mineral Resource.
Metallurgical testing of high grade material is underway and further
metallurgical test drilling has been planned.
ANGLOGOLD ASHANTI / DE BEERS JOINT VENTURE
During the quarter, a memorandum of understanding was signed with Seafield
Resources and drilling off the west coast of South Island, New Zealand
(Seafield Venture) is planned to start this quarter.
GREENFIELDS EXPLORATION
Greenfield exploration activities were undertaken in Australia, the Americas,
China, Southeast Asia, Sub- Saharan Africa, Russia, the Democratic Republic of
the Congo and the Middle East & North Africa. A total of 36,802m of diamond, RC
and AC drilling was completed at existing priority targets and used to
delineate new targets in Australia, Colombia and Canada.
Work continued on the feasibility study for the Tropicana Gold Project in
Australia while environmental approvals required for open pit mining were
sought. Exploration continued throughout the tenement package while targets
close to the proposed gold operation were prioritized. AngloGold Ashanti owns
70% of the project and Independence Group owns the rest.
Drilling about 550m northeast of the proposed Tropicana pit returned results of
7m @ 2.1g/t gold from 141m and 14m @ 3.49g/t gold from 176m. Significantly,
these intersections from the same hole may represent the faulted northern
continuation of the Tropicana ore body. Encouraging results were also obtained
to the south of the proposed Havana pit at the Havana South zone and Crouching
Tiger prospects. In Havana South, significant intersections included 13m @
2.37g/t gold from 317m and 21m @ 2.50g/t gold from 202m. RC drilling at
Crouching Tiger intersected 8m @ 2.83g/t gold from 134m.
In more regional exploration, significant aircore results were returned from
Black Dragon, 30km from the Tropicana - Havana resource, including 4m @ 0.6g/t
gold from 40m. At Tumbleweed, 10km north of Tropicana, aircore drilling
returned 8m @ 0.81g/t gold from 56m. These results confirm the anomalous zones
identified by previous significant aircore intersections and extend the
potential size of the targets. At Voodoo Child, 50km north of Tropicana,
aircore drilling intersected 17m @ 2.25g/t gold from 3m. Infill aircore
drilling and follow-up reverse circulation drilling are planned for these
prospects in 2010.
The Viking project, which spans about 11,000 square kilometres and includes
6,200 square kilometres of granted exploration licences, is southwest of the
joint venture area and within the Albany-Fraser foreland tectonic setting that
hosts the Tropicana deposit. Surface geochemical sampling continued throughout
the quarter and an airborne m agnetic-radiometric survey was completed.
Greenfields exploration in the Americas was active in Colombia, Brazil, and
Canada. In Colombia, 688.6 m of Phase III drilling at one project with the rest
of the work focused on regional reconnaissance and follow -up exploration. In
Brazil, the exploration team initiated various reconnaissance programmes in
unexplored areas. In Canada, projects in the Laurentian and Commander Resources
JV`s were advanced to drill stage.
In China, a soil sampling programme across the Jinchanggou tenements, designed
to identify similar high- grade zones to those delineated in this year `s
trenching programme, was completed. Soil sampling ended in early December,
final results were obtained later that month and analysis of the results is
ongoing. The three new applications in the Junggar Belt of NE China are pending
approval from the Provincial Department of Land and Resources.
In Southeast Asia, project-generation activities and specific evaluations
continued in a number of areas across the region. In the Solomon Islands two
joint venture agreements were signed with XDM Resources under which AngloGold
Ashanti can earn a 51% participating interest in two separate projects, by
spending US$10m in total. A further 19% interest in each are a can be earned by
the successful completion of a bankable feasibility study. AngloGold Ashanti
has agreed to complete a C$3.3m initial private placement in XDM Resources and
may also exercise a further C$3.98m. Field mapping, auger soil sampling, rock
chip sampling and petrological studies have commenced.
In Sub-Saharan Africa, AngloGold Ashanti and Canada`s Dome Ventures Corp
entered into a joint venture agreement over Domes` 100% owned Mevang and Ndjole
licences in Gabon, covering a combined 4,000 square kilometers. AngloGold also
staked the "Ogooue" prospect covering 8, 295 square kilometers of similar
geology and concluded a transaction for the Mimongo and Koumaneyoung licences.
Collectively, this area is referred to as the "Gabon Gold Project" and to tals
approximately 16,501 square kilometers.
In the Democratic Republic of the Congo, negotiations continued with the
Government to secure concession licenses and are expected to be concluded in
early 2010. Drilling recommenced in November and a total of 1,108m in 10 holes
was completed for metallurgical test work at the Mongbwalu Resource area, while
field mapping continued along strike from the deposit. Mapping was completed at
Mosaba Hill, southwest of Mongbwalu and Kopatele, southwest of Nzebi.
In the Middle East & North Africa, the strategic alliance between AngloGold
Ashanti and Thani Investments has identified several promising projects in the
Arabian Nubian Shield.
Mineral Resource and Ore Reserve
Mineral Resource and Ore Reserve are reported in accordance with the minimum
standards described by the Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves (JORC Code, 2004 Edition), and also
conform to the standards set out in the South African Code for the Reporting of
Mineral Resources and Mineral Reserves (SAMREC 2000 Code). Mineral Resources
are inclusive of the Ore Reserve component unless otherwise stated.
MINERAL RESOURCES
When the 2008 Mineral Resource is restated to exclude the sale of Boddington
(11.9Moz) and the purchase of Kibali (10.1Moz) the Mineral Resource is reduced
from 241.0Moz to 239.2Moz. The total Mineral Resources decreased from 239.2Moz
in 2008 to 226.7Moz in December 2009. A year-on-year decrease of 6.3Moz (3%)
occurred before the subtraction of depletion and a decrease of 12.5Moz (5%)
after the subtraction of depletion.
It should be noted that the changes in economic assumptions from 2008 to 2009
resulted in the Mineral Resource decreasing by 2.8Moz whilst exploration and
modelling resulted in an increase of 3.5Moz. The remaining loss of 6.9Moz
resulted from various other reasons. Depletions from the Mineral Resource for
2009 totalled 6.2Moz.
Moz
Mineral Resources as at
31 December 2008 241.0
Sale of Boddington (11.9)
Acquisition of Kibali 10.1
Restated 2008 Mineral Resources 239.2
Reductions
Obuasi Predominantly due to changes in
the underground resource models (7.8)
and a re-assessment of the surface
resources. This reduction does
not impact on the Ore Reserve
Vaal River Surface Reductions due to lower uranium price (3.2)
(VRGO)
Geita Predominantly due to depletion, model
updates and increase in costs (1.4)
Kibali Conversion of Inferred to Indicated Mineral
Resource resulted in (1.2)
losses
West Wits Surface Reductions due to lower uranium price (1.2)
Other Total of non-significant changes (4.0)
Additions
Moab Khotsong Gains due to exploration resulting in an
increase in confidence and 2.2
grades
Other Total of non-significant changes 4.1
Mineral Resources as at
31 December 2009 226.7
(Mineral resources have been calculated at a gold price of US$1,025/oz (2008:
US$1,000/oz).
Rounding of figures may result in computational discrepencies.
ORE RESERVES
W hen the 2008 Ore Reserve is restated to exclude the sale of Boddington
(6.7Moz) and the purchase of Kibali (2.5Moz), the 2008 Ore Reserve is reduced
from 74.9Moz to 70.7 Moz. Using the restated figure , the total AngloGold
Ashanti Ore Reserves increased from 70.7Moz in 2008 to 71.4Moz in December
2009. A year-on-year increase of 6.0Moz (8%) occurred before the subtraction of
5.2Moz for depletion, resulting in an increase of 0.8Moz (1%) after the
subtraction of depletion.
It should be noted that the changes in the economic assumptions from 2008 to
2009 resulted in the Ore Reserve increasing 3.2Moz while exploration and
modelling resulted in a further increase of 2.7Moz.
Moz
Ore Reserves as at 31 December 2008 74.9
Sale of Boddington (6.7)
Acquisition of Kibali 2.5
Restated 2008 Ore Reserves 70.7
Reductions
Great Noligwa Northern portion of mine was removed from
plan to ensure (1.0)
profitability
Kopanang Reduction due to mine design changes plus
slightly lower MCF, also (0.7)
changes in geological structure, facies
and evaluation model
Cripple Creek & Victor Adjustment due to heap leach
reconciliation issues (0.6)
Other Total of non-significant changes (2.3)
Additions
Tropicana First Ore Reserve reported for
Tropicana - based on Enhanced 2.3
Feasibility Study and Owner Mining
Kibali New acquisition (2.5Moz) and underground
Ore Reserve additions 1.7
(1.7Moz)
Sadiola Deep Sulphides Ore Reserve included and
ownership increased
from 38% to 41% 1.0
Other Total of non-significant changes 0.4
Ore Reserves as at 31 December 2009 71.4
(Ore reserves have been calculated using a gold price of US$800/oz (2008:
US$720/oz).
Rounding of figures may result in computational discrepancies..
BY-PRODUCTS
Several by-products are recovered as a result of the processing of gold Ore
Reserves. These include 17,000t of uranium oxide from the South African
operations, 409 ,000t of sulphur from Brazil and 34.9Moz of silver from
Argentina. Details of by-product Mineral Resources and Ore Reserves are given
in the Mineral Resource and Ore Reserve Report 2009, which will be available on
or about 26 March 2010 either on the corporate website,
www.AngloGoldAshanti.com, or on request from the contacts detailed at t he end
of this report.
EXTERNAL AUDIT OF MINERAL RESOURCE
During the course of the year and as part of the rolling audit program me,
AngloGold Ashanti`s 2009 Mineral Resources at the following operations were
submitted for external audit by the Australia n based company Quantitative
Group (QG):
- Carbon Leader at Mponeng, TauTona and Savuka mines;
- Navachab - Main Pit;
- Geita - Nyankanga;
- Obuasi - KMS Deep;
- Siguiri - Project Area 1;
- Sadiola - Deep Sulphide;
- Sunrise Dam - Underground; and
- Brasil Mineracao - Cuiaba.
The company has been informed that the audit identified no material
shortcomings in the process by which AngloGold Ashanti`s Mineral Resources were
evaluated. It is the company`s intention to continue this process so that each
of its operations will be audited every three years on average.
COMPETENT PERSONS
The information in this report that relates to Exploration Results, Mineral
Resources and Ore Reserves is based on information compiled by the Competent
Persons. These individuals are identified in the report. The Competent Persons
consent to the inclusion of Exploration Results, Mineral Resources and Ore
Reserves information in this report, in the form and context in which it
appears.
During the past decade, the company has developed and implemented a rigorous
system of internal and external reviews of exploration results, Mineral
Resources and Ore Reserves. A documented chain of responsibility exists from
the Competent Persons at the operations to the company`s Mineral Resource and
Ore Reserve Steering Committee. Accordingly, the Chairman of the Mineral
Resource and Ore Reserve Steering Committee, VA Chamberlain, MSc (Mining
Engineering), BSc (Hons) (Geology), MAusIMM, assumes responsibility for the
Mineral Resource and Ore Reserve processes for AngloGold Ashanti and is
satisfied that the Competent Persons have fulfilled their responsibilities.
MINERAL RESOURCES BY COUNTRY (ATTRIBUTABLE)
Category Tonnes Grade
million g/t
as at 31 December 2009
South Africa Measured 30.37 14.18
Indicated 300.55 7.59
Inferred 42.24 13.51
Total 373.16 8.80
Namibia Measured 17.24 0.78
Indicated 66.84 1.24
Inferred 18.53 1.07
Total 102.60 1.13
Democratic Republic of the Congo Measured 0.00 -
Indicated 59.17 3.29
Inferred 31.82 4.61
Total 90.99 3.76
Ghana Measured 80.21 4.98
Indicated 72.39 3.86
Inferred 98.44 3.88
Total 251.04 4.23
Guinea Measured 36.58 0.68
Indicated 130.15 0.85
Inferred 78.22 0.89
Total 244.95 0.84
Mali Measured 18.34 1.46
Indicated 37.23 1.82
Inferred 20.89 1.77
Total 76.46 1.72
Tanzania Measured 0.00 -
Indicated 87.70 3.46
Inferred 13.03 4.04
Total 100.73 3.54
Australia Measured 34.10 1.87
Indicated 38.83 2.88
Inferred 15.34 3.01
Total 88.26 2.51
United States of America Measured 280.80 0.82
Indicated 194.55 0.73
Inferred 73.12 0.73
Total 548.46 0.78
Argentina Measured 12.00 1.78
Indicated 22.70 3.38
Inferred 6.16 3.71
Total 40.85 2.96
Brazil Measured 11.24 6.49
Indicated 15.16 6.02
Inferred 30.53 6.76
Total 56.93 6.51
Colombia Measured 0.00 -
Indicated 15.16 0.93
Inferred 402.51 1.00
Total 417.67 0.99
Total Measured 520.88 2.47
Indicated 1,040.43 3.61
Inferred 830.81 2.42
Total 2,392.12 2.95
Contained Contained
Category gold gold
tonnes Moz
as at 31 December 2009
South Africa Measured 430.77 13.85
Indicated 2,281.63 73.36
Inferred 570.45 18.34
Total 3,282.85 105.55
Namibia Measured 13.46 0.43
Indicated 82.57 2.65
Inferred 19.92 0.64
Total 115.95 3.73
Democratic Republic of the Congo Measured 0.00 0.00
Indicated 194.93 6.27
Inferred 146.79 4.72
Total 341.72 10.99
Ghana Measured 399.77 12.85
Indicated 279.66 8.99
Inferred 382.02 12.28
Total 1,061.45 34.13
Guinea Measured 24.73 0.80
Indicated 110.34 3.55
Inferred 69.85 2.25
Total 204.92 6.59
Mali Measured 26.86 0.86
Indicated 67.80 2.18
Inferred 36.94 1.19
Total 131.59 4.23
Tanzania Measured 0.00 0.00
Indicated 303.46 9.76
Inferred 52.63 1.69
Total 356.10 11.45
Australia Measured 63.60 2.04
Indicated 111.97 3.60
Inferred 46.13 1.48
Total 221.69 7.13
United States of America Measured 231.03 7.43
Indicated 142.71 4.59
Inferred 53.58 1.72
Total 427.31 13.74
Argentina Measured 21.37 0.69
Indicated 76.62 2.46
Inferred 22.82 0.73
Total 120.81 3.88
Brazil Measured 72.93 2.34
Indicated 91.28 2.93
Inferred 206.35 6.63
Total 370.56 11.91
Colombia Measured 0.00 0.00
Indicated 14.18 0.46
Inferred 401.40 12.91
Total 415.57 13.36
Total Measured 1,284.51 41.30
Indicated 3,757.14 120.79
Inferred 2,008.87 64.59
Total 7,050.53 226.68
Rounding of figures may result in computational discrepencies.
ORE RESERVES BY COUNTRY (ATTRIBUTABLE)
Contained Contained
Category Tonnes Grade gold gold
million g/t tonnes Moz
as at 31
December 2009
South Africa Proved 8.80 8.13 71.60 2.30
Probable 213.96 4.16 890.80 28.64
Total 222.76 4.32 962.40 30.94
Namibia Proved 9.85 0.93 9.12 0.29
Probable 32.40 1.28 41.42 1.33
Total 42.25 1.20 50.55 1.63
Democratic
Republic of the
Congo Proved 0.00 - 0.00 0.00
Probable 28.71 4.48 128.65 4.14
Total 28.71 4.48 128.65 4.14
Ghana Proved 40.29 3.36 135.34 4.35
Probable 51.31 4.66 239.31 7.69
Total 91.60 4.09 374.65 12.05
Guinea Proved 30.83 0.64 19.59 0.63
Probable 87.85 0.86 75.99 2.44
Total 118.67 0.81 95.58 3.07
Mali Proved 9.24 1.99 18.35 0.59
Probable 18.96 2.02 38.32 1.23
Total 28.21 2.01 56.67 1.82
Tanzania Proved 0.00 - 0.00 0.00
Probable 47.36 3.33 157.57 5.07
Total 47.36 3.33 157.57 5.07
Australia Proved 23.63 2.24 53.00 1.70
Probable 25.72 2.82 72.63 2.34
Total 49.35 2.55 125.63 4.04
United States of
America Proved 99.82 0.92 92.29 2.97
Probable 46.40 0.89 41.17 1.32
Total 146.22 0.91 133.47 4.29
Argentina Proved 10.76 1.37 14.78 0.48
Probable 9.64 4.53 43.66 1.40
Total 20.40 2.86 58.44 1.88
Brazil Proved 6.67 5.90 39.37 1.27
Probable 7.30 5.37 39.21 1.26
Total 13.97 5.63 78.58 2.53
Total Proved 239.89 1.89 453.45 14.58
Probable 569.61 3.11 1,768.73 56.87
Total 809.50 2.75 2,222.19 71.44
Rounding of figures may result in computational discrepencies.
MINERAL RESOURCES BY COUNTRY (ATTRIBUTABLE) EXCLUSIVE OF ORE RESERVES
Contained Contained
Category Tonnes Grade gold gold
million g/t tonnes Moz
as at 31
December 2009
South Africa Measured 22.89 14.34 328.17 10.55
Indicated 100.15 11.48 1,149.86 36.97
Inferred 21.11 15.73 332.07 10.68
Total 144.15 12.56 1,810.10 58.20
Namibia Measured 7.39 0.59 4.34 0.14
Indicated 34.43 1.19 40.99 1.32
Inferred 18.53 1.07 19.92 0.64
Total 60.35 1.08 65.24 2.10
Democratic
Republic of
the Congo Measured 0.00 - 0.00 0.00
Indicated 30.46 2.18 66.28 2.13
Inferred 31.82 4.61 146.79 4.72
Total 62.28 3.42 213.07 6.85
Ghana Measured 27.08 5.05 136.86 4.40
Indicated 34.89 3.99 139.29 4.48
Inferred 53.62 3.86 206.88 6.65
Total 115.58 4.18 483.02 15.53
Guinea Measured 3.75 0.78 2.93 0.09
Indicated 45.56 0.86 39.30 1.26
Inferred 78.22 0.89 69.85 2.25
Total 127.52 0.88 112.07 3.60
Mali Measured 4.86 0.79 3.85 0.12
Indicated 20.27 1.58 32.05 1.03
Inferred 20.89 1.77 36.94 1.19
Total 46.02 1.58 72.84 2.34
Tanzania Measured 0.00 - 0.00 0.00
Indicated 43.22 3.21 138.72 4.46
Inferred 13.03 4.04 52.63 1.69
Total 56.24 3.40 191.35 6.15
Australia Measured 1.70 1.36 2.32 0.07
Indicated 13.11 3.00 39.34 1.26
Inferred 15.34 3.01 46.13 1.48
Total 30.15 2.91 87.79 2.82
United States
of America Measured 180.98 0.77 138.73 4.46
Indicated 148.15 0.69 101.53 3.26
Inferred 68.65 0.74 50.77 1.63
Total 397.78 0.73 291.04 9.36
Argentina Measured 2.29 3.08 7.06 0.23
Indicated 16.04 2.17 34.80 1.12
Inferred 6.16 3.71 22.82 0.73
Total 24.49 2.64 64.68 2.08
Brazil Measured 4.31 6.41 27.63 0.89
Indicated 8.20 5.77 47.29 1.52
Inferred 29.45 6.81 200.66 6.45
Total 41.96 6.57 275.57 8.86
Colombia Measured 0.00 - 0.00 0.00
Indicated 15.16 0.93 14.18 0.46
Inferred 402.51 1.00 401.40 12.91
Total 417.67 0.99 415.57 13.36
Total Measured 255.24 2.55 651.88 20.66
Indicated 509.64 3.62 1,843.61 59.27
Inferred 759.32 2.09 1,586.84 51.02
Total 1,524.20 2.68 4,082.34 131.25
Rounding of figures may result in computational discrepencies.
Group operating results
Quarter ended
Dec Sep Dec
2009 2009 2008
Unaudited
Rand / Metric
OPERATING RESULTS
UNDERGROUND OPERATIONS
Milled
- 000 tonnes / - 000 tons 2,910 3,090 3,227
Yield
-g/t / - oz / t 6.68 6.41 6.72
Gold produced
- kg / - oz (000) 19,435 19,816 21,679
SURFACE AND DUMP RECLAMATION
Treated
- 000 tonnes / - 000 tons 3,068 3,102 3,092
Yield
-g/t / - oz / t 0.48 0.49 0.44
Gold produced
- kg / - oz (000) 1,476 1,527 1,362
OPEN-PIT OPERATIONS
Mined
- 000 tonnes / - 000 tons 40,346 37,408 40,332
Treated
- 000 tonnes / - 000 tons 6,645 6,713 6,575
Stripping ratio
- t (mined total - mined ore) / t mined
ore 4.71 6.08 4.65
Yield
-g/t / - oz / t 1.98 1.95 2.01
Gold in ore
- kg / - oz (000) 10,348 8,604 18,394
Gold produced
- kg / - oz (000) 13,128 13,077 13,240
HEAP LEACH OPERATIONS
Mined
- 000 tonnes / - 000 tons 14,480 14,605 13,712
Placed 1
- 000 tonnes / - 000 tons 4,678 4,409 5,861
Stripping ratio
- t (mined total - mined ore) / t mined
ore 2.23 2.52 1.47
Yield 2
-g/t / - oz / t 0.72 0.60 0.61
Gold placed 3
- kg / - oz (000) 3,380 2,667 3,577
Gold produced
- kg / - oz (000) 2,728 2,505 3,148
TOTAL
Gold produced
- kg / - oz (000) 36,767 36,925 39,429
Gold sold
- kg / - oz (000) 37,359 38,435 39,249
Price receiv ed
- R / kg / - $ / oz - sold 247,985 61,095 219,329
Price receiv ed excluding
hedge buy-back costs
- R / kg / - $ / oz - sold 247,985 225,388 219,329
Total cash costs
- R / kg / - $ / oz - produced 143,596 133,274 134,813
Total production costs
- R / kg / - $ / oz - produced 178,379 166,355 172,312
PRODUCTIVITY PER EMPLOYEE
Target
-g / - oz 333 328 342
Actual
-g / - oz 292 301 295
CAPITAL EXPENDITURE
- Rm / - $m 2,275 1,842 2,994
Year
ended
Dec Dec
2009 2008
Rand / Metric
OPERATING RESULTS
UNDERGROUND OPERATIONS
Milled
- 000 tonnes / - 000 tons 11,944 12,335
Yield
-g/t / - oz / t 6.41 6.89
Gold produced
- kg / - oz (000) 76,532 85,025
SURFACE AND DUMP RECLAMATION
Treated
- 000 tonnes / - 000 tons 12,779 11,870
Yield
-g/t / - oz / t 0.51 0.42
Gold produced
- kg / - oz (000) 6,481 5,009
OPEN-PIT OPERATIONS
Mined
- 000 tonnes / - 000 tons 167,000 175,999
Treated
- 000 tonnes / - 000 tons 25,582 25,388
Stripping ratio
- t (mined total - mined ore) / t mined ore 5.58 5.24
Yield
-g/t / - oz / t 1.96 2.12
Gold in ore
- kg / - oz (000) 34,934 47,160
Gold produced
- kg / - oz (000) 50,041 53,930
HEAP LEACH OPERATIONS
Mined
- 000 tonnes / - 000 tons 57,456 54,754
Placed 1
- 000 tonnes / - 000 tons 19,887 23,462
Stripping ratio
- t (mined total - mined ore) / t mined ore 1.94 1.43
Yield 2
-g/t / - oz / t 0.65 0.62
Gold placed 3
- kg / - oz (000) 12,958 14,496
Gold produced
- kg / - oz (000) 9,995 10,994
TOTAL
Gold produced
- kg / - oz (000) 143,049 154,958
Gold sold
- kg / - oz (000) 142,837 155,954
Price received
- R / kg / - $ / oz - sold 201,805 130,522
Price received excluding
hedge buy-back costs
- R / kg / - $ / oz - sold 246,048 185,887
Total cash costs
- R / kg / - $ / oz - produced 136,595 117,462
Total production costs
- R / kg / - $ / oz - produced 171,795 150,149
PRODUCTIVITY PER EMPLOYEE
Target
-g / - oz 317 333
Actual
-g / - oz 292 309
CAPITAL EXPENDITURE
- Rm / - $m 8,726 9,905
Quarter ended
Dec Sep Dec
2009 2009 2008
Unaudited
Dollar / Imperial
OPERATING RESULTS
UNDERGROUND OPERATIONS
Milled
- 000 tonnes / - 000 tons 3,207 3,406 3,557
Yield
-g/t / - oz / t 0.195 0.187 0.196
Gold produced
- kg / - oz (000) 625 637 697
SURFACE AND DUMP RECLAMATION
Treated
- 000 tonnes / - 000 tons 3,382 3,419 3,408
Yield
-g/t / - oz / t 0.014 0.014 0.013
Gold produced
- kg / - oz (000) 47 49 44
OPEN-PIT OPERATIONS
Mined
- 000 tonnes / - 000 tons 44,474 41,235 44,458
Treated
- 000 tonnes / - 000 tons 7,325 7,400 7,248
Stripping ratio
- t (mined total - mined ore) / t mined ore 4.71 6.08 4.65
Yield
-g/t / - oz / t 0.058 0.057 0.059
Gold in ore
- kg / - oz (000) 333 277 591
Gold produced
- kg / - oz (000) 422 420 426
HEAP LEACH OPERATIONS
Mined
- 000 tonnes / - 000 tons 15,961 16,099 15,115
Placed 1
- 000 tonnes / - 000 tons 5,156 4,860 6,460
Stripping ratio
- t (mined total - mined ore) / t mined ore 2.23 2.52 1.47
Yield 2
-g/t / - oz / t 0.021 0.018 0.018
Gold placed 3
- kg / - oz (000) 109 86 115
Gold produced
- kg / - oz (000) 88 81 101
TOTAL
Gold produced
- kg / - oz (000) 1,182 1,187 1,268
Gold sold
- kg / - oz (000) 1,201 1,236 1,262
Price received
- R / kg / - $ / oz - sold 1,029 261 687
Price received excluding
hedge buy-back costs
- R / kg / - $ / oz - sold 1,029 906 687
Total cash costs
- R / kg / - $ / oz - produced 598 534 422
Total production costs
- R / kg / - $ / oz - produced 743 667 540
PRODUCTIVITY PER EMPLOYEE
Target
-g / - oz 10.72 10.56 11.00
Actual
-g / - oz 9.40 9.68 9.48
CAPITAL EXPENDITURE
- Rm / - $m 293 232 302
Year
ended
Dec Dec
2009 2008
Dollar / Imperial
OPERATING RESULTS
UNDERGROUND OPERATIONS
Milled
- 000 tonnes / - 000 tons 13,166 13,597
Yield
-g/t / - oz / t 0.187 0.201
Gold produced
- kg / - oz (000) 2,461 2,734
SURFACE AND DUMP RECLAMATION
Treated
- 000 tonnes / - 000 tons 14,086 13,085
Yield
-g/t / - oz / t 0.015 0.012
Gold produced
- kg / - oz (000) 208 161
OPEN-PIT OPERATIONS
Mined
- 000 tonnes / - 000 tons 184,086 194,006
Treated
- 000 tonnes / - 000 tons 28,199 27,985
Stripping ratio
- t (mined total - mined ore) / t mined ore 5.58 5.24
Yield
-g/t / - oz / t 0.057 0.062
Gold in ore
- kg / - oz (000) 1,123 1,516
Gold produced
- kg / - oz (000) 1,609 1,734
HEAP LEACH OPERATIONS
Mined
- 000 tonnes / - 000 tons 63,334 60,356
Placed 1
- 000 tonnes / - 000 tons 21,922 25,863
Stripping ratio
- t (mined total - mined ore) / t mined ore 1.94 1.43
Yield 2
-g/t / - oz / t 0.019 0.018
Gold placed 3
- kg / - oz (000) 417 466
Gold produced
- kg / - oz (000) 321 353
TOTAL
Gold produced
- kg / - oz (000) 4,599 4,982
Gold sold
- kg / - oz (000) 4,592 5,014
Price received
- R / kg / - $ / oz - sold 751 485
Price received excluding
hedge buy-back costs
- R / kg / - $ / oz - sold 925 702
Total cash costs
- R / kg / - $ / oz - produced 514 444
Total production costs
- R / kg / - $ / oz - produced 646 567
PRODUCTIVITY PER EMPLOYEE
Target
-g / - oz 10.20 10.70
Actual
-g / - oz 9.40 9.94
CAPITAL EXPENDITURE
- Rm / - $m 1,027 1,201
1 Tonnes (tons) placed on to leach pad.
2 Gold placed / tonnes (tons) placed.
3 Gold placed into leach pad inventory.
Rounding of figures may result in computational discrepancies.
Group income statement
Quarter Quarter
ended ended
December September
2009 2009
SA Rand million Notes Unaudited Unaudited
Revenue 2 9,514 8,806
Gold income 9,234 8,512
Cost of sales 3 (6,219) (6,168)
(Loss) gain on non-hedge derivatives and
other commodity contracts 4 (2,706) (11,216)
Gross profit (loss) 309 (8,872)
Corporate administration and other
expenses (359) (264)
Market development costs (10) (24)
Exploration costs (442) (311)
Other operating income (expenses) 5 58 (36)
Operating special items 6 4,761 (231)
Operating profit (loss) 4,317 (9,738)
Interest received 133 121
Exchange gain 527 25
Fair value adjustment on option component
of convertible bond (66) (60)
Finance costs and unwinding of obligations (268) (305)
Share of equity accounted investments`
profit (loss) 227 175
Profit (loss) before taxation 4,870 (9,782)
Taxation 7 (1,522) 1,650
Profit (loss) after taxation from
continuing operations 3,348 (8,132)
Discontinued operations
Profit from discontinued operations - -
Profit (loss) for the period 3,348 (8,132)
Allocated as follows:
Equity shareholders 3,179 (8,245)
Non-controlling interests 169 113
3,348 (8,132)
Basic profit (loss) per ordinary share
(cents) 1
Profit (loss) from continuing operations 867 (2,286)
Profit from discontinued operations - -
Profit (loss) 867 (2,286)
Diluted profit (loss) per ordinary share
(cents) 2
Profit (loss) from continuing operations 865 (2,286)
Profit from discontinued operations - -
Profit (loss) 865 (2,286)
Quarter Year Year
ended ended ended
December December December
2008 2009 2008
SA Rand million Unaudited Unaudited Audited
Revenue 8,771 31,961 30,790
Gold income 8,517 30,745 29,774
Cost of sales (6,928) (23,220) (22,558)
(Loss) gain on non-hedge derivatives
and other commodity contracts 598 (11,934) (6,277)
Gross profit (loss) 2,187 (4,409) 939
Corporate administration and other
expenses (363) (1,275) (1,090)
Market development costs (41) (87) (113)
Exploration costs (298) (1,217) (1,037)
Other operating income (expenses) 61 (80) (29)
Operating special items (15,855) 5,209 (15,379)
Operating profit (loss) (14,309) (1,859) (16,709)
Interest received 108 444 536
Exchange gain 8 852 33
Fair value adjustment on option
component of convertible bond 2 (249) 185
Finance costs and unwinding of
obligations (225) (1,146) (926)
Share of equity accounted investments`
profit (loss) (381) 785 (1,177)
Profit (loss) before taxation (14,797) (1,173) (18,058)
Taxation 2,978 (1,172) 2,079
Profit (loss) after taxation from
continuing operations (11,819) (2,345) (15,979)
Discontinued operations
Profit from discontinued operations 4 - 198
Profit (loss) for the period (11,815) (2,345) (15,781)
Allocated as follows:
Equity shareholders (11,869) (2,762) (16,105)
Non-controlling interests 54 417 324
(11,815) (2,345) (15,781)
Basic profit (loss) per ordinary share
(cents) 1
Profit (loss) from continuing
operations (3,336) (765) (5,140)
Profit from discontinued operations 1 - 63
Profit (loss) (3,335) (765) (5,077)
Diluted profit (loss) per ordinary
share (cents) 2
Profit (loss) from continuing
operations (3,336) (765) (5,140)
Profit from discontinued operations 1 - 63
Profit (loss) (3,335) (765) (5,077)
1 Calculated on the basic weighted average number of ordinary shares.
2 Calculated on the diluted weighted average number of ordinary shares.
Rounding of figures may result in computational discrepancies.
Group income statement
Quarter Quarter
ended ended
December September
2009 2009
US Dollar million Notes Unaudited Unaudited
Revenue 2 1,273 1,140
Gold income 1,236 1,101
Cost of sales 3 (833) (796)
(Loss) gain on non-hedge derivatives and
other commodity contracts 4 (363) (1,421)
Gross profit (loss) 40 (1,116)
Corporate administration and other
expenses (48) (34)
Market development costs (1) (3)
Exploration costs (59) (40)
Other operating income (expenses) 5 8 (5)
Operating special items 6 636 (31)
Operating profit (loss) 576 (1,229)
Interest received 18 16
Exchange gain 71 3
Fair value adjustment on option component
of convertible bond (9) (9)
Finance costs and unwinding of obligations (36) (39)
Share of equity accounted investments`
profit (loss) 30 22
Profit (loss) before taxation 650 (1,236)
Taxation 7 (204) 209
Profit (loss) after taxation from
continuing operations 446 (1,027)
Discontinued operations
Profit from discontinued operations - -
Profit (loss) for the period 446 (1,027)
Allocated as follows:
Equity shareholders 424 (1,042)
Non-controlling interests 22 15
446 (1,027)
Basic profit (loss) per ordinary share
(cents) 1
Profit (loss) from continuing operations 116 (289)
Profit from discontinued operations - -
Profit (loss) 116 (289)
Diluted profit (loss) per ordinary share
(cents) 2
Profit (loss) from continuing operations 115 (289)
Profit from discontinued operations - -
Profit (loss) 115 (289)
Quarter Year Year
ended ended ended
December December December
2008 2009 2008
US Dollar million Unaudited Unaudited Audited
Revenue 884 3,916 3,743
Gold income 858 3,768 3,619
Cost of sales (698) (2,813) (2,728)
(Loss) gain on non-hedge derivatives
and other commodity contracts 230 (1,533) (297)
Gross profit (loss) 390 (578) 594
Corporate administration and other
expenses (37) (154) (131)
Market development costs (4) (10) (13)
Exploration costs (30) (150) (126)
Other operating income (expenses) 6 (8) (6)
Operating special items (1,600) 691 (1,538)
Operating profit (loss) (1,275) (209) (1,220)
Interest received 11 54 66
Exchange gain 1 112 4
Fair value adjustment on option
component of convertible bond - (33) 25
Finance costs and unwinding of obligations (23) (139) (114)
Share of equity accounted investments`
profit (loss) (39) 94 (138)
Profit (loss) before taxation (1,324) (121) (1,377)
Taxation 313 (147) 197
Profit (loss) after taxation from
continuing operations (1,011) (268) (1,180)
Discontinued operations
Profit from discontinued operations - - 25
Profit (loss) for the period (1,011) (268) (1,155)
Allocated as follows:
Equity shareholders (1,016) (320) (1,195)
Non-controlling interests 5 52 40
(1,011) (268) (1,155)
Basic profit (loss) per ordinary share
(cents) 1
Profit (loss) from continuing
operations (285) (89) (385)
Profit from discontinued operations - - 8
Profit (loss) (285) (89) (377)
Diluted profit (loss) per ordinary
share (cents) 2
Profit (loss) from continuing
operations (285) (89) (385)
Profit from discontinued operations - - 8
Profit (loss) (285) (89) (377)
1 Calculated on the basic weighted average number of ordinary shares.
2 Calculated on the diluted weighted average number of ordinary shares.
Rounding of figures may result in computational discrepancies.
Group statement of comprehensive income
Quarter Quarter Quarter
ended ended ended
December September December
2009 2009 2008
SA Rand million Unaudited Unaudited Unaudited
Profit (loss) for the period 3,348 (8,132) (11,815)
Exchange differences on translation
of foreign operations (576) 336 4,150
Net loss on cash flow hedges (140) (142) (99)
Net loss on cash flow hedges removed
from equity and reported in gold
income 181 122 369
Hedge ineffectiveness on cash flow
hedges 15 (18) 67
Realised gains (losses) on hedges of
capital items 2 (35) (18)
Deferred taxation thereon (13) 17 (58)
45 (56) 261
Net gain (loss) on available for sale
financial assets 346 100 7
Release on disposal of available for
sale financial assets - - (1)
Deferred taxation thereon (5) (4) (12)
341 96 (6)
Actuarial gain (loss) recognised 88 - (171)
Deferred taxation thereon (28) - 58
60 - (113)
Other comprehensive (expense) income
for the period net of tax (130) 376 4,292
Total comprehensive income (expense)
for the period net of tax 3,218 (7,756) (7,523)
Allocated as follows:
Equity shareholders 3,050 (7,869) (7,570)
Non-controlling interests 168 113 47
3,218 (7,756) (7,523)
Year Year
ended ended
December December
2009 2008
SA Rand million Unaudited Audited
Profit (loss) for the period (2,345) (15,781)
Exchange differences on translation of foreign
operations (2,465) 8,747
Net loss on cash flow hedges (132) (721)
Net loss on cash flow hedges removed from equity and
reported in gold income 1,155 1,782
Hedge ineffectiveness on cash flow hedges 40 64
Realised gains (losses) on hedges of capital items (12) (18)
Deferred taxation thereon (263) (254)
788 853
Net gain (loss) on available for sale financial assets 482 (74)
Release on disposal of available for sale financial assets - (9)
Deferred taxation thereon (13) 11
469 (72)
Actuarial gain (loss) recognised 88 (364)
Deferred taxation thereon (28) 124
60 (240)
Other comprehensive (expense) income for the period
net of tax (1,148) 9,288
Total comprehensive income (expense) for the period
net of tax (3,493) (6,493)
Allocated as follows:
Equity shareholders (3,919) (6,839)
Non-controlling interests 426 346
(3,493) (6,493)
Rounding of figures may result in computational discrepancies.
Group statement of comprehensive income
Quarter Quarter Quarter
ended ended ended
December September December
2009 2009 2008
US Dollar million Unaudited Unaudited Unaudited
Profit (loss) for the period 446 (1,027) (1,011)
Exchange differences on translation
of foreign operations (50) 76 (267)
Net loss on cash flow hedges (17) (15) (6)
Net loss on cash flow hedges removed
from equity and reported in gold income 26 19 32
Hedge ineffectiveness on cash flow hedges 2 (2) 8
Realised gains (losses) on hedges of
capital items 1 (4) (2)
Deferred taxation thereon (3) 1 (4)
9 (1) 28
Net gain (loss) on available for sale
financial assets 41 12 2
Release on disposal of available for
sale financial assets - - -
Deferred taxation thereon (1) (1) (1)
40 11 1
Actuarial gain (loss) recognised 10 - (19)
Deferred taxation thereon (3) - 6
7 - (13)
Other comprehensive income (expense)
for the period net of tax 6 86 (251)
Total comprehensive income (expense)
for the period net of tax 452 (941) (1,262)
Allocated as follows:
Equity shareholders 429 (956) (1,266)
Non-controlling interests 23 15 4
452 (941) (1,262)
Year Year
ended ended
December December
2009 2008
Restated
US Dollar million Unaudited Unaudited
Profit (loss) for the period (268) (1,155)
Exchange differences on translation of foreign
operations 300 (561)
Net loss on cash flow hedges (16) (87)
Net loss on cash flow hedges removed from equity
and reported in gold income 138 216
Hedge ineffectiveness on cash flow hedges 5 8
Realised gains (losses) on hedges of capital items (1) (2)
Deferred taxation thereon (35) (28)
91 107
Net gain (loss) on available for sale financial assets 57 (9)
Release on disposal of available for sale financial assets - (1)
Deferred taxation thereon (2) 1
55 (9)
Actuarial gain (loss) recognised 10 (44)
Deferred taxation thereon (3) 15
7 (29)
Other comprehensive income (expense) for the period
net of tax 453 (492)
Total comprehensive income (expense) for the period
net of tax 185 (1,647)
Allocated as follows:
Equity shareholders 132 (1,690)
Non-controlling interests 53 43
185 (1,647)
Rounding of figures may result in computational discrepancies.
Group statement of financial position
As at As at As at
December September December
2009 2009 2008
SA Rand million Note Unaudited Unaudited Audited
ASSETS
Non-current assets
Tangible assets 43,263 37,416 41,081
Intangible assets 1,316 1,315 1,403
Investments in associates and
equity accounted joint
ventures 4,758 1,890 2,814
Other investments 1,302 961 625
Inventories 2,508 2,550 2,710
Trade and other receivables 788 766 585
Derivatives 40 - -
Deferred taxation 451 487 475
Other non-current assets 63 30 32
54,489 45,415 49,725
Current assets
Inventories 5,102 4,997 5,663
Trade and other receivables 1,419 3,586 2,076
Derivatives 2,450 2,900 5,386
Current portion of other
non-current assets 3 2 2
Cash restricted for use 481 501 415
Cash and cash equivalents 8,176 8,328 5,438
17,631 20,314 18,980
Non-current assets held for
sale 650 642 7,497
18,281 20,956 26,477
TOTAL ASSETS 72,770 66,371 76,202
EQUITY AND LIABILITIES
Share capital and premium 10 39,834 39,759 37,336
Retained earnings and other
reserves (18,276) (21,601) (14,380)
Non-controlling interests 966 848 790
Total equity 22,524 19,006 23,746
Non-current liabilities
Borrowings 4,862 12,512 8,224
Environmental rehabilitation
and other provisions 3,351 3,530 3,860
Provision for pension and
post-retirement benefits 1,179 1,280 1,293
Trade, other payables and
deferred income 108 107 99
Derivatives 1,310 1,249 235
Deferred taxation 5,599 4,272 5,838
16,409 22,950 19,549
Current liabilities
Current portion of borrowings 9,493 1,867 10,046
Trade, other payables and
deferred income 4,332 4,449 4,946
Derivatives 18,770 16,954 16,426
Taxation 1,186 1,079 1,033
33,781 24,349 32,451
Non-current liabilities held
for sale 56 66 456
33,837 24,415 32,907
Total liabilities 50,246 47,365 52,456
TOTAL EQUITY AND LIABILITIES 72,770 66,371 76,202
Net asset value - cents per
share 6,153 5,195 6,643
Rounding of figures may result in computational discrepancies.
Group statement of financial position
As at As at As at
December September December
2009 2009 2008
Restated
US Dollar million Note Unaudited Unaudited Unaudited
ASSETS
Non-current assets
Tangible assets 5,819 4,980 4,345
Intangible assets 177 175 148
Investments in associates
and equity accounted joint
ventures 640 252 298
Other investments 175 128 66
Inventories 337 339 287
Trade and other receivables 106 102 62
Derivatives 5 - -
Deferred taxation 61 65 50
Other non-current assets 8 4 3
7,328 6,045 5,259
Current assets
Inventories 686 665 599
Trade and other receivables 191 477 220
Derivatives 330 386 570
Current portion of other
non-current assets - - -
Cash restricted for use 65 67 44
Cash and cash equivalents 1,100 1,108 575
2,372 2,703 2,008
Non-current assets held for sale 87 85 793
2,459 2,788 2,801
TOTAL ASSETS 9,787 8,833 8,060
EQUITY AND LIABILITIES
Share capital and premium 10 5,805 5,794 5,485
Retained earnings and other
reserves (2,905) (3,378) (3,057)
Non-controlling interests 130 113 83
Total equity 3,030 2,529 2,511
Non-current liabilities
Borrowings 654 1,665 870
Environmental rehabilitation
and other provisions 451 470 408
Provision for pension and
post-retirement benefits 159 170 137
Trade, other payables and
deferred income 14 14 11
Derivatives 176 166 25
Deferred taxation 753 569 617
2,207 3,054 2,068
Current liabilities
Current portion of borrowings 1,277 249 1,063
Trade, other payables and
deferred income 582 592 524
Derivatives 2,525 2,256 1,737
Taxation 159 144 109
4,543 3,241 3,433
Non-current liabilities held for sale 7 9 48
4,550 3,250 3,481
Total liabilities 6,757 6,304 5,549
TOTAL EQUITY AND LIABILITIES 9,787 8,833 8,060
Net asset value - cents per
share 828 691 702
Rounding of figures may result in computational discrepancies.
Group statement of cashflows
Quarter Quarter Quarter
ended ended ended
December September December
2009 2009 2008
SA Rand million Unaudited Unaudited Unaudited
Cash flows from operating activities
Receipts from customers 9,596 8,545 8,772
Payments to suppliers and employees (5,889) (6,147) (6,210)
Cash generated from operations 3,707 2,398 2,562
Cash utilised by discontinued
operations - - (4)
Dividends received from equity
accounted investments 136 21 257
Taxation paid (233) (234) (127)
Cash utilised for hedge buy-back costs - (6,315) (10)
Net cash inflow (outflow) from
operating activities 3,610 (4,130) 2,678
Cash flows from investing activities
Capital expenditure (2,243) (1,836) (2,964)
Proceeds from disposal of tangible
assets 1,814 43 33
Proceeds from disposal of assets of
discontinued operations - - -
Other investments acquired (229) (328) (197)
Acquisition of associates and equity
accounted joint ventures (2,638) - 3
Proceeds on disposal of associate - - (1)
Associates` loans advanced (17) - (3)
Associates` loans repaid - - 1
Proceeds from disposal of investments 196 258 203
Decrease (increase) in cash
restricted for use 19 (16) 94
Interest received 129 129 98
Loans advanced - - -
Repayment of loans advanced 2 1 1
Net cash outflow from investing
activities (2,967) (1,749) (2,733)
Cash flows from financing activities
Proceeds from issue of share capital 39 2,215 12
Share issue expenses (39) (34) (11)
Proceeds from borrowings 162 6,709 1,622
Repayment of borrowings (57) (12,957) (477)
Finance costs paid (180) (110) (266)
Dividends paid (43) (253) -
Net cash (outflow) inflow from
financing activities (118) (4,430) 879
Net increase (decrease) in cash and
cash equivalents 525 (10,309) 824
Translation (677) 869 29
Cash and cash equivalents at
beginning of period 8,328 17,768 4,585
Cash and cash equivalents at end of
period 8,176 8,328 5,438
Cash generated from operations
Profit (loss) before taxation 4,870 (9,782) (14,797)
Adjusted for:
Movement on non-hedge derivatives and
other commodity contracts 2,281 11,041 (1,046)
Amortisation of tangible assets 1,152 1,107 1,387
Finance costs and unwinding of
obligations 268 305 225
Environmental, rehabilitation and
other expenditure (70) 33 (72)
Operating special items (4,708) 231 15,855
Amortisation of intangible assets 4 4 9
Deferred stripping 205 (96) (140)
Fair value adjustment on option
component of convertible bonds 66 60 (2)
Interest received (133) (121) (108)
Share of equity accounted
investments` (profit) loss (227) (175) 381
Other non-cash movements (675) 23 363
Movements in working capital 674 (232) 507
3,707 2,398 2,562
Movements in working capital
(Increase) decrease in inventories (183) 104 (1,162)
Decrease (increase) in trade and
other receivables 438 (125) 135
Increase (decrease) in trade and
other payables 419 (211) 1,533
674 (232) 507
Year Year
ended ended
December December
2009 2008
SA Rand million Unaudited Audited
Cash flows from operating activities
Receipts from customers 31,473 30,117
Payments to suppliers and employees (20,896) (24,429)
Cash generated from operations 10,577 5,688
Cash utilised by discontinued operations - (11)
Dividends received from equity accounted investments 751 739
Taxation paid (1,232) (1,029)
Cash utilised for hedge buy-back costs (6,315) (8,514)
Net cash inflow (outflow) from operating activities 3,781 (3,127)
Cash flows from investing activities
Capital expenditure (8,656) (9,846)
Proceeds from disposal of tangible assets 9,029 301
Proceeds from disposal of assets of discontinued
operations - 79
Other investments acquired (750) (769)
Acquisition of associates and equity accounted joint
ventures (2,646) -
Proceeds on disposal of associate - 382
Associates` loans advanced (17) (38)
Associates` loans repaid 3 33
Proceeds from disposal of investments 680 729
Decrease (increase) in cash restricted for use (91) (49)
Interest received 445 538
Loans advanced (1) (3)
Repayment of loans advanced 4 3
Net cash outflow from investing activities (2,000) (8,640)
Cash flows from financing activities
Proceeds from issue of share capital 2,384 13,592
Share issue expenses (84) (421)
Proceeds from borrowings 24,901 7,034
Repayment of borrowings (24,152) (5,066)
Finance costs paid (946) (788)
Dividends paid (474) (455)
Net cash (outflow) inflow from financing activities 1,629 13,896
Net increase (decrease) in cash and cash equivalents 3,410 2,129
Translation (672) 63
Cash and cash equivalents at beginning of period 5,438 3,246
Cash and cash equivalents at end of period 8,176 5,438
Cash generated from operations
Profit (loss) before taxation (1,173) (18,058)
Adjusted for:
Movement on non-hedge derivatives and other
commodity contract 14,417 3,169
Amortisation of tangible assets 4,615 4,620
Finance costs and unwinding of obligations 1,146 926
Environmental, rehabilitation and other expenditure (47) 38
Operating special items (5,148) 15,379
Amortisation of intangible assets 18 21
Deferred stripping (467) (418)
Fair value adjustment on option component of
convertible bonds 249 (185)
Interest received (444) (536)
Share of equity accounted investments` (profit) loss (785) 1,177
Other non-cash movements (853) 776
Movements in working capital (951) (1,221)
10,577 5,688
Movements in working capital
(Increase) decrease in inventories 634 (3,588)
Decrease (increase) in trade and other receivables 106 (618)
Increase (decrease) in trade and other payables (1,691) 2,985
(951) (1,221)
Rounding of figures may result in computational discrepancies.
Group statement of cashflows
Quarter Quarter Quarter
ended ended ended
December September December
2009 2009 2008
US Dollar million Unaudited Unaudited Unaudited
Cash flows from operating activities
Receipts from customers 1,283 1,104 892
Payments to suppliers and employees (805) (741) (681)
Cash generated from operations 478 363 210
Cash utilised by discontinued operations - - -
Dividends received from equity
accounted investments 19 5 20
Taxation paid (32) (32) (7)
Cash utilised for hedge buy-back costs - (797) (1)
Net cash inflow (outflow) from
operating activities 465 (461) 221
Cash flows from investing activities
Capital expenditure (281) (239) (298)
Proceeds from disposal of tangible
assets 242 5 3
Proceeds from disposal of assets of
discontinued operations - - -
Other investments acquired (29) (39) (19)
Acquisition of associates and equity
accounted joint ventures (353) - (1)
Proceeds on disposal of associate - - (2)
Associates` loans advanced (2) - -
Associates` loans repaid - - -
Proceeds from disposal of investments 25 31 20
Decrease (increase) in cash
restricted for use 2 (2) 14
Interest received 17 17 10
Loans advanced - - -
Repayment of loans advanced - - -
Net cash outflow from investing
activities (379) (227) (274)
Cash flows from financing activities
Proceeds from issue of share capital 5 287 1
Share issue expenses (5) (5) -
Proceeds from borrowings 29 784 149
Repayment of borrowings (22) (1,573) (17)
Finance costs paid (23) (16) (25)
Dividends paid (6) (32) -
Net cash (outflow) inflow from
financing activities (22) (555) 108
Net increase (decrease) in cash and
cash equivalents 64 (1,243) 55
Translation (72) 46 (35)
Cash and cash equivalents at
beginning of period 1,108 2,305 555
Cash and cash equivalents at end of
period 1,100 1,108 575
Cash generated from operations
Profit (loss) before taxation 650 (1,236) (1,324)
Adjusted for:
Movement on non-hedge derivatives and
other commodity contracts 306 1,398 (276)
Amortisation of tangible assets 154 143 140
Finance costs and unwinding of
obligations 36 39 23
Environmental, rehabilitation and
other expenditure (9) 5 (8)
Operating special items (629) 31 1,600
Amortisation of intangible assets - 1 1
Deferred stripping 27 (13) (14)
Fair value adjustment on option
component of convertible bonds 9 9 -
Interest received (18) (16) (11)
Share of equity accounted
investments` (profit) loss (30) (22) 39
Other non-cash movements (90) 3 36
Movements in working capital 72 21 5
478 363 210
Movements in working capital
Increase in inventories (35) (12) (1)
Decrease (increase) in trade and
other receivables 55 (25) 47
Increase (decrease) in trade and
other payables 52 58 (40)
72 21 5
Year Year
ended ended
December December
2009 2008
US Dollar million Unaudited Audited
Cash flows from operating activities
Receipts from customers 3,845 3,672
Payments to suppliers and employees (2,500) (3,040)
Cash generated from operations 1,345 632
Cash utilised by discontinued operations - (1)
Dividends received from equity accounted investments 101 78
Taxation paid (147) (125)
Cash utilised for hedge buy-back costs (797) (1,113)
Net cash inflow (outflow) from operating activities 502 (529)
Cash flows from investing activities
Capital expenditure (1,019) (1,194)
Proceeds from disposal of tangible assets 1,142 39
Proceeds from disposal of assets of discontinued
operations - 10
Other investments acquired (89) (93)
Acquisition of associates and equity accounted joint
ventures (354) -
Proceeds on disposal of associate - 48
Associates` loans advanced (2) (4)
Associates` loans repaid - 4
Proceeds from disposal of investments 81 88
Decrease (increase) in cash restricted for use (10) (6)
Interest received 55 67
Loans advanced - -
Repayment of loans advanced 1 -
Net cash outflow from investing activities (195) (1,041)
Cash flows from financing activities
Proceeds from issue of share capital 306 1,722
Share issue expenses (11) (54)
Proceeds from borrowings 2,774 853
Repayment of borrowings (2,731) (614)
Finance costs paid (111) (93)
Dividends paid (56) (58)
Net cash (outflow) inflow from financing activities 171 1,756
Net increase (decrease) in cash and cash equivalents 478 186
Translation 47 (88)
Cash and cash equivalents at beginning of period 575 477
Cash and cash equivalents at end of period 1,100 575
Cash generated from operations
Profit (loss) before taxation (121) (1,377)
Adjusted for:
Movement on non-hedge derivatives and other
commodity contracts 1,787 (88)
Amortisation of tangible assets 555 560
Finance costs and unwinding of obligations 139 114
Environmental, rehabilitation and other expenditure (6) 6
Operating special items (683) 1,538
Amortisation of intangible assets 2 2
Deferred stripping (48) (51)
Fair value adjustment on option component of
convertible bonds 33 (25)
Interest received (54) (66)
Share of equity accounted investments` (profit) loss (94) 138
Other non-cash movements (115) 87
Movements in working capital (50) (206)
1,345 632
Movements in working capital
Increase in inventories (155) (151)
Decrease (increase) in trade and other receivables (45) (9)
Increase (decrease) in trade and other payables 150 (46)
(50) (206)
Rounding of figures may result in computational discrepancies.
Group statement of changes in equity
Cash
Share Other flow
capital & capital Retained hedge
SA Rand million premium reserves earnings reserve
Balance at December 2007 22,371 714 (5,524) (1,634)
(Loss) profit for the year (16,105)
Comprehensive income (expense) 831
Total comprehensive
(expense) income - - (16,105) 831
Shares issued 14,965
Share-based payment for
share awards 118
Dividends paid (324)
Dividends of subsidiaries
Acquisition of
non-controlling interests (914)
Transfers to other reserves 12 (12)
Translation (45) (205)
Balance at December 2008 37,336 799 (22,879) (1,008)
(Loss) profit for the year (2,762)
Comprehensive income (expense) 779
Total comprehensive
(expense) income - - (2,762) 779
Shares issued 2,498
Share-based payment for
share awards 122
Dividends paid (392)
Dividends of subsidiaries
Equity transaction of joint
venture 306
Translation (33) 55
Balance at December 2009 39,834 1,194 (26,033) (174)
US Dollar million
Balance at December 2007 -
restated 3,608 105 (1,020) (240)
(Loss) profit for the year (1,195)
Comprehensive income
(expense) 104
Total comprehensive - - (1,195) 104
(expense) income
Shares issued 1,877
Share-based payment for
share awards 14
Dividends paid (41)
Dividends of subsidiaries
Acquisition of
non-controlling interests (111)
Transfers to other reserves 1 (1)
Translation (35) 29
Balance at December 2008 -
restated 5,485 85 (2,368) (107)
(Loss) profit for the year (320)
Comprehensive income 90
Total comprehensive
(expense) income - - (320) 90
Shares issued 320
Share-based payment for
share awards 15
Dividends paid (45)
Dividends of subsidiaries
Equity transaction of joint venture 37
Translation 24 (6)
Balance at December 2009 5,805 161 (2,733) (23)
Available Foreign
for Actuarial currency
sale (losses) translation
SA Rand million reserve gains reserve Total
Balance at December 2007 59 (108) 326 16,204
(Loss) profit for the year (16,105)
Comprehensive income
(expense) (72) (240) 8,747 9,266
Total comprehensive
(expense) income (72) (240) 8,747 (6,839)
Shares issued 14,965
Share-based payment
for share awards 118
Dividends paid (324)
Dividends of
subsidiaries -
Acquisition of
non-controlling
interests (914)
Transfers to other
reserves -
Translation (5) 1 (254)
Balance at December
2008 (18) (347) 9,073 22,956
(Loss) profit for the year (2,762)
Comprehensive income
(expense) 469 60 (2,465) (1,157)
Total comprehensive
(expense) income 469 60 (2,465) (3,919)
Shares issued 2,498
Share-based payment
for share awards 122
Dividends paid (392)
Dividends of
subsidiaries -
Equity transaction of
joint venture 306
Translation (37) 2 (13)
Balance at December 2009 414 (285) 6,608 21,558
US Dollar million
Balance at December
2007 - restated 9 (16) (67) 2,379
(Loss) profit for the year (1,195)
Comprehensive income
(expense) (9) (29) (561) (495)
Total comprehensive
(expense) income (9) (29) (561) (1,690)
Shares issued 1,877
Share-based payment
for share awards 14
Dividends paid (41)
Dividends of
subsidiaries -
Acquisition of
non-controlling
interests (111)
Transfers to other
reserves -
Translation (2) 8 -
Balance at December
2008 - restated (2) (37) (628) 2,428
(Loss) profit for the year (320)
Comprehensive income 55 7 300 452
Total comprehensive
(expense) income 55 7 30 0 132
Shares issued 320
Share-based payment
for share awards 15
Dividends paid (45)
Dividends of
subsidiaries -
Equity transaction of
joint venture 37
Translation 3 (8) 13
Balance at December 2009 56 (38) (328) 2,900
Non-
controlling Total
SA Rand million interests equity
Balance at December 2007 429 16,633
(Loss) profit for the year 324 (15,781)
Comprehensive income (expense) 22 9,288
Total comprehensive (expense) income 346 (6,493)
Shares issued 14,965
Share-based payment for share awards 118
Dividends paid (324)
Dividends of subsidiaries (131) (131)
Acquisition of non-controlling interests 6 (908)
Transfers to other reserves -
Translation 140 (114)
Balance at December 2008 790 23,746
(Loss) profit for the year 417 (2,345)
Comprehensive income (expense) 9 (1,148)
Total comprehensive (expense) income 426 (3,493)
Shares issued 2,498
Share-based payment for share awards 122
Dividends paid (392)
Dividends of subsidiaries (83) (83)
Equity transaction of joint venture 306
Translation (167) (180)
Balance at December 2009 966 22,524
US Dollar million
Balance at December 2007 - restated 63 2,442
(Loss) profit for the year 40 (1,155)
Comprehensive income (expense) 3 (492)
Total comprehensive (expense) income 43 (1,647)
Shares issued 1,877
Share-based payment for share awards 14
Dividends paid (41)
Dividends of subsidiaries (17) (17)
Acquisition of non-controlling interests 1 (110)
Transfers to other reserves -
Translation (7) (7)
Balance at December 2008 - restated 83 2,511
(Loss) profit for the year 52 (268)
Comprehensive income 1 453
Total comprehensive (expense) income 53 185
Shares issued 320
Share-based payment for share awards 15
Dividends paid (45)
Dividends of subsidiaries (11) (11)
Equity transaction of joint venture 37
Translation 5 18
Balance at December 2009 130 3,030
Rounding of figures may result in computational discrepancies.
Notes
for the quarter and year ended 31 December 2009
1. Basis of preparation
The financial statements in this quarterly report have been prepared in
accordance with the historic cost convention except for certain financial
instruments which are stated at fair value. Except for the change in accounting
policy described in note 15, 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 2008 and revised
International Financial Reporting Standards (IFRS) which are effective 1
January 2009, where applicable, with the only significant changes arising from
IAS1 (revised) - "Presentation of Financial Statements" and IFRS8 "Operating
Segments". As a result of the revision of IAS1, a Statement of comprehensive
income, which discloses non owner changes in equity, and a statement of changes
in equity are presented. The effects of the adoption of IFRS8 are disclosed in
Segmental reporting.
The financial statements of AngloGold Ashanti Limited have been prepared in
compliance with IAS34, 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 year ended 31 December 2009.
2. Revenue
Quarter ended Year ended
Dec Sep Dec Dec Dec
2009 2009 2008 2009 2008
Unaudited Unaudited Unaudited Unaudited Audited
SA Rand million
Gold income 9,234 8,512 8,517 30,745 29,774
By-products
(note 3) 147 173 147 772 480
Interest
received 133 121 108 444 536
9,514 8,806 8,771 31,961 30,790
Quarter ended Year ended
Dec Sep Dec Dec Dec
2009 2009 2008 2009 2008
Unaudited Unaudited Unaudited Unaudited Audited
US Dollar million
Gold income 1,236 1,101 858 3,768 3,619
By-products
(note 3) 20 23 15 94 58
Interest
received 18 16 11 54 66
1,273 1,140 884 3,916 3,743
3. Cost of sales
Quarter ended
Dec Sep Dec
2009 2009 2008
Unaudited Unaudited Unaudited
A Rand million
Cash operating costs (4,865) (4,719) (4,948)
By-products revenue (note 2) 147 173 147
By-products cash operating costs (77) (74) (65)
(4,795) (4,620) (4,866)
Other cash costs (222) (222) (196)
Total cash costs (5,017) (4,842) (5,062)
Retrenchment costs (39) (17) (16)
Rehabilitation and other non-cash
costs 5 (96) 2
Production costs (5,050) (4,955) (5,076)
Amortisation of tangible assets (1,152) (1,107) (1,387)
Amortisation of intangible assets (4) (4) (9)
Total production costs (6,206) (6,066) (6,472)
Inventory change (13) (102) (456)
(6,219) (6,168) (6,928)
Year ended
Dec Dec
2009 2008
Unaudited Audited
A Rand million
Cash operating costs (18,493) (16,865)
By-products revenue (note 2) 772 480
By-products cash operating costs (351) (286)
(18,072) (16,671)
Other cash costs (833) (734)
Total cash costs (18,905) (17,405)
Retrenchment costs (110) (72)
Rehabilitation and other non-cash
costs (182) (218)
Production costs (19,197) (17,695)
Amortisation of tangible assets (4,615) (4,620)
Amortisation of intangible assets (18) (21)
Total production costs (23,830) (22,336)
Inventory change 610 (222)
(23,220) (22,558)
Quarter ended
Dec Sep Dec
2009 2009 2008
Unaudited Unaudited Unaudited
US Dollar million
Cash operating costs (652) (608) (498)
By-products revenue (note 2) 20 23 15
By-products cash operating costs (10) (10) (7)
(642) (595) (490)
Other cash costs (30) (29) (20)
Total cash costs (671) (624) (510)
Retrenchment costs (5) (2) (2)
Rehabilitation and other non-cash
costs 1 (12) -
Production costs (676) (638) (511)
Amortisation of tangible assets (154) (143) (140
Amortisation of intangible assets - (1) (1)
Total production costs (830) (781) (652)
Inventory change (2) (14) (47)
(833) (796) (698)
Year ended
Dec Dec
2009 2008
Unaudited Audited
US Dollar million
Cash operating costs (2,234) (2,045)
By-products revenue (note 2) 94 58
By-products cash operating costs (43) (36)
(2,183) (2,023)
Other cash costs (100) (90)
Total cash costs (2,283) (2,113)
Retrenchment costs (14) (9)
Rehabilitation and other non-cash
costs (22) (28)
Production costs (2,319) (2,150)
Amortisation of tangible assets (555) (560)
Amortisation of intangible assets (2) (2)
Total production costs (2,876) (2,712)
Inventory change 63 (16)
(2,813) (2,728)
Rounding of figures may result in computational discrepancies.
4. (Loss) gain on non-hedge derivatives and other commodity contracts
Quarter ended
Dec Sep Dec
2009 2009 2008
Unaudited Unaudited Unaudited
SA Rand million
(Loss) gain on realised non-hedge
derivatives (494) (139) (348)
Realised loss on other commodity
contracts - - -
Loss on hedge buy-back costs - (6,315) -
(Loss) gain on unrealised non-hedge
derivatives (2,212) (4,762) 898
Unrealised gain on other commodity
physical borrowings - - 48
Provision reversed for gain on future
deliveries of other commodities - - -
(2,706) (11,216) 598
Year ended
Dec Dec
2009 2008
Unaudited Audited
SA Rand million
(Loss) gain on realised non-hedge
derivatives 2,476 (1,275)
Realised loss on other commodity
contracts - (253)
Loss on hedge buy-back costs (6,315) (8,634)
(Loss) gain on unrealised non-hedge
derivatives (8,095) 3,774
Unrealised gain on other commodity
physical borrowings - 74
Provision reversed for gain on future
deliveries of other commodities - 37
(11,934) (6,277)
Quarter ended
Dec Sep Dec
2009 2009 2008
Unaudited Unaudited Unaudited
US Dollar million
(Loss) gain on realised non-hedge
derivatives (66) (19) (35)
Realised loss on other commodity
contracts - - -
Loss on hedge buy-back costs - (797) -
(Loss) gain on unrealised non-hedge
derivatives (297) (606) 260
Unrealised gain on other commodity
physical borrowings - - 5
Provision reversed for gain on future
deliveries of other commodities - - -
(363) (1,421) 230
Year ended
Dec Dec
2009 2008
Unaudited Audited
US Dollar million
(Loss) gain on realised non-hedge
derivatives 254 (155)
Realised loss on other commodity
contracts - (32)
Loss on hedge buy-back costs (797) (1,088)
(Loss) gain on unrealised non-hedge
derivatives (990) 965
Unrealised gain on other commodity
physical borrowings - 8
Provision reversed for gain on future
deliveries of other commodities - 5
(1,533) (297)
5. Other operating income (expenses)
Quarter ended
Dec Sep Dec
2009 2009 2008
Unaudited Unaudited Unaudited
SA Rand million
Pension and medical defined benefit
provisions 29 (24) 80
Claims filed by former employees in
respect of loss of employment, work-
related accident injuries and
diseases, governmental fiscal claims
and costs of old tailings operations 31 (11) (20)
Miscellaneous (2) (1) 1
58 (36) 61
Year ended
Dec Dec
2009 2008
Unaudited Audited
SA Rand million
Pension and medical defined benefit
provisions (44) 8
Claims filed by former employees in
respect of loss of employment, work-
related accident injuries and
diseases, governmental fiscal claims
and costs of old tailings operations (31) (37)
Miscellaneous (5) -
(80) (29)
Quarter ended
Dec Sep Dec
2009 2009 2008
Unaudited Unaudited Unaudited
US Dollar million
Pension and medical defined benefit
provisions 4 (3) 8
Claims filed by former employees in
respect of loss of employment, work-
related accident injuries and
diseases, governmental fiscal claims
and costs of old tailings operations 4 (2) (2)
Miscellaneous - - -
8 (5) 6
Year ended
Dec Dec
2009 2008
Unaudited Audited
US Dollar million
Pension and medical defined benefit
provisions (5) (2)
Claims filed by former employees in
respect of loss of employment, work-
related accident injuries and
diseases, governmental fiscal claims
and costs of old tailings operations (3) (4)
Miscellaneous - -
(8) (6)
6. Operating special items
Quarter ended
Dec Sep Dec
2009 2009 2008
Unaudited Unaudited Unaudited
SA Rand million
Indirect tax (expenses) reimbursement (240) 11 148
Siguiri royalty payment calculation
dispute with the Guinean
Administration - - (26)
ESOP costs resulting from rights offer - - -
Contractor termination costs at Iduapriem - - (10)
Net reversals/(impairments) of tangible
assets (note 8) 5,209 (94) (14,786)
Impairment of goodwill (note 8) - - (1,080)
Recovery of exploration costs - - -
Recovery (loss) on consignment stock 14 7 -
Provision for bad debt - Pamodzi Gold - - -
Insurance claim recovery 54 - -
Net (loss) profit on disposal and
abandonment of land, mineral rights,
tangible assets and exploration
properties (note 8) (275) (156) (55)
Nufcor Uranium Trust contributions by
other members (note 8) - - -
Impairment of investments (note 8) - - (42)
(Loss) profit on disposal of investment
in Nufcor International Limited (note 8) - - (4)
4,761 (231) (15,855)
Year ended
Dec Dec
2009 2008
Unaudited Audited
SA Rand million
Indirect tax (expenses) reimbursement (219) 198
Siguiri royalty payment calculation
dispute with the Guinean
Administration - (26)
ESOP costs resulting from rights offer - (76)
Contractor termination costs at Iduapriem - (10)
Net reversals/(impairments) of tangible
assets (note 8) 5,115 (14,792)
Impairment of goodwill (note 8) - (1,080)
Recovery of exploration costs - 35
Recovery (loss) on consignment stock (95) -
Provision for bad debt - Pamodzi Gold (66) -
Insurance claim recovery 54 -
Net (loss) profit on disposal and
abandonment of land, mineral rights,
tangible assets and exploration
properties (note 8) 420 381
Nufcor Uranium Trust contributions by
other members (note 8) - 19
Impairment of investments (note 8) - (42)
(Loss) profit on disposal of investment
in Nufcor International Limited (note 8) - 14
5,209 (15,379)
Quarter ended
Dec Sep Dec
2009 2009 2008
Unaudited Unaudited Unaudited
US Dollar million
Indirect tax (expenses) reimbursement (32) 1 15
Siguiri royalty payment calculation
dispute with the Guinean
Administration - - (3)
ESOP costs resulting from rights offer - - -
Contractor termination costs at Iduapriem - - (1)
Net reversals/(impairments) of tangible
assets (note 8) 696 (13) (1,492)
Impairment of goodwill (note 8) - - (109)
Recovery of exploration costs - - -
Recovery (loss) on consignment stock 2 1 -
Provision for bad debt - Pamodzi Gold - - -
Insurance claim recovery 7 - -
Net (loss) profit on disposal and
abandonment of land, mineral rights,
tangible assets and exploration
properties (note 8) (37) (21) (4)
Nufcor Uranium Trust contributions by
other members (note 8) - - -
Impairment of investments (note 8) - - (6)
(Loss) profit on disposal of investment
in Nufcor International Limited (note 8) - - -
636 (31) (1,600)
Year ended
Dec Dec
2009 2008
Unaudited Audited
US Dollar million
Indirect tax (expenses) reimbursement (29) 22
Siguiri royalty payment calculation
dispute with the Guinean
Administration - (3)
ESOP costs resulting from rights offer - (9)
Contractor termination costs at Iduapriem - (1)
Net reversals/(impairments) of tangible assets (note 8) 683 (1,493)
Impairment of goodwill (note 8) - (109)
Recovery of exploration costs - 4
Recovery (loss) on consignment stock (12) -
Provision for bad debt - Pamodzi Gold (7) -
Insurance claim recovery 7 -
Net (loss) profit on disposal and
abandonment of land, mineral rights,
tangible assets and exploration
properties (note 8) 49 52
Nufcor Uranium Trust contributions by
other members (note 8) - 3
Impairment of investments (note 8) - (6)
(Loss) profit on disposal of investment
in Nufcor International Limited (note 8) - 2
691 (1,538)
Rounding of figures may result in computational discrepancies.
7. Taxation
Quarter ended
Dec Sep Dec
2009 2009 2008
Unaudited Unaudited Unaudited
SA Rand million
South African taxation
Mining tax (60) 14 -
Non-mining tax (10) 77 (18)
Over (under) provision prior year 7 (12) 18
Deferred taxation:
Temporary differences (180) (44) (446)
Unrealised non-hedge
derivatives and other
commodity contracts 204 1,317 (98)
Change in estimated deferred tax rate 156 - (62)
Change in statutory tax rate - - 1
118 1,353 (605)
Foreign taxation
Normal taxation (335) (262) (231)
Over (under) provision prior year 90 (27) -
Deferred taxation:
Temporary differences (1,410) 393 3,970
Unrealised non-hedge derivatives
and other commodity contracts 15 193 (155)
(1,640) 297 3,583
(1,522) 1,650 2,978
Year ended
Dec Dec
2009 2008
Unaudited Audited
SA Rand million
South African taxation
Mining tax (153) -
Non-mining tax (89) (85)
Over (under) provision prior year (33) (42)
Deferred taxation:
Temporary differences (535) 161
Unrealised non-hedge
derivatives and other
commodity contracts 1,451 (841)
Change in estimated deferred tax
rate 156 (62)
Change in statutory tax rate - 70
797 (799)
Foreign taxation
Normal taxation (1,113) (651)
Over (under) provision prior year 50 41
Deferred taxation:
Temporary differences (1,220) 3,747
Unrealised non-hedge derivatives
and other commodity contracts 314 (259)
(1,969) 2,878
(1,172) 2,079
Quarter ended
Dec Sep Dec
2009 2009 2008
Unaudited Unaudited Unaudited
US Dollar million
South African taxation
Mining tax (8) 2 -
Non-mining tax (1) 10 (2)
Over (under) provision prior year 1 (2) 2
Deferred taxation:
Temporary differences (24) (6) (45)
Unrealised non-hedge
derivatives and other
commodity contracts 27 167 1
Change in estimated deferred tax rate 21 - (6)
Change in statutory tax rate - - -
16 171 (50)
Foreign taxation
Normal taxation (45) (34) (24)
Over (under) provision prior year 12 (4) -
Deferred taxation:
Temporary differences (188) 51 401
Unrealised non-hedge derivatives
and other commodity contracts 2 24 (15)
(219) 38 363
(204) 209 313
Year ended
Dec Dec
2009 2008
Unaudited Audited
US Dollar million
South African taxation
Mining tax (19) -
Non-mining tax (10) (12)
Over (under) provision prior year (4) (6)
Deferred taxation:
Temporary differences (61) 30
Unrealised non-hedge
derivatives and other
commodity contracts 181 (89)
Change in estimated deferred tax rate 21 (6)
Change in statutory tax rate - 9
108 (74)
Foreign taxation
Normal taxation (138) (79)
Over (under) provision prior year 7 5
Deferred taxation:
Temporary differences (164) 372
Unrealised non-hedge derivatives
and other commodity contracts 40 (27)
(255) 271
(147) 197
8. Headline (loss) earnings
Quarter ended
Dec Sep Dec
2009 2009 2008
Unaudited Unaudited Unaudited
SA Rand million
The profit (loss) attributable to equity
shareholders has been adjusted
by the following to arrive at
headline (loss) earnings:
Profit (loss) attributable to equity
shareholders 3,179 (8,245) (11,869)
Net (reversals)/impairments of
tangible assets (note 6) (5,209) 94 14,786
Impairment of goodwill (note 6) - - 1,080
Net loss (profit) on disposal and
abandonment of land, mineral
rights, tangible assets and
exploration properties (note 6) 275 156 55
Impairment of investments (note 6) - - 42
Nufcor Uranium Trust contributions
by other members (note 6) - - -
Loss (profit) on disposal of
investment in Nufcor International
Limited (note 6) - - 4
Profit on disposal of discontinued assets - - -
Impairment and operating special
item of investment in associates 1 (2) 347
Profit on disposal of assets in associate - - -
Taxation on items above - current portion (12) (48) 3
Taxation on items above - deferred
portion 1,414 (22) (3,933)
Discontinued operations taxation on
items above - - -
(353) (8,068) 516
Cents per share (1)
Headline (loss) earnings (96) (2,237) 145
Year ended
Dec Dec
2009 2008
Unaudited Audited
SA Rand million
The profit (loss) attributable to equity
shareholders has been adjusted
by the following to arrive at
headline (loss) earnings:
Profit (loss) attributable to equity shareholders (2,762) (16,105)
Net (reversals)/impairments of
tangible assets (note 6) (5,115) 14,792
Impairment of goodwill (note 6) - 1,080
Net loss (profit) on disposal and
abandonment of land, mineral
rights, tangible assets and
exploration properties (note 6) (420) (381)
Impairment of investments (note 6) - 42
Nufcor Uranium Trust contributions
by other members (note 6) - (19)
Loss (profit) on disposal of
investment in Nufcor International Limited (note 6) - (14)
Profit on disposal of discontinued assets - (218)
Impairment and operating special
item of investment in associates 2 389
Profit on disposal of assets in associate - (30)
Taxation on items above - current portion 145 10
Taxation on items above - deferred portion 1,360 (3,915)
Discontinued operations taxation on items above - (6)
(6,790) (4,375)
Cents per share (1)
Headline (loss) earnings (1,880) (1,379)
Quarter ended
Dec Sep Dec
2009 2009 2008
Unaudited Unaudited Unaudited
US Dollar million
The profit (loss) attributable to equity
shareholders has been adjusted
by the following to arrive at
headline (loss) earnings:
Profit (loss) attributable to equity
shareholders 424 (1,042) (1,016)
Net (reversals)/impairments of
tangible assets (note 6) (696) 13 1,492
Impairment of goodwill (note 6) - - 109
Net loss (profit) on disposal and
abandonment of land, mineral
rights, tangible assets and
exploration properties (note 6) 37 21 4
Impairment of investments (note 6) - - 6
Nufcor Uranium Trust contributions
by other members (note 6) - - -
Loss (profit) on disposal of
investment in Nufcor International
Limited (note 6) - - -
Profit on disposal of discontinued assets - - -
Impairment and operating special
item of investment in associates - - 35
Profit on disposal of assets in associate - - -
Taxation on items above - current portion (2) (6) -
Taxation on items above - deferred portion 189 (3) (397)
Discontinued operations taxation on
items above - - -
(48) (1,018) 234
Cents per share (1)
Headline (loss) earnings (13) (282) 66
Year ended
Dec Dec
2009 2008
Unaudited Audited
US Dollar million
The profit (loss) attributable to equity
shareholders has been adjusted
by the following to arrive at
headline (loss) earnings:
Profit (loss) attributable to equity shareholders (320) (1,195)
Net (reversals)/impairments of
tangible assets (note 6) (683) 1,493
Impairment of goodwill (note 6) - 109
Net loss (profit) on disposal and
abandonment of land, mineral
rights, tangible assets and
exploration properties (note 6) (49) (52)
Impairment of investments (note 6) - 6
Nufcor Uranium Trust contributions
by other members (note 6) - (3)
Loss (profit) on disposal of
investment in Nufcor International
Limited (note 6) - (2)
Profit on disposal of discontinued assets - (27)
Impairment and operating special
item of investment in associates - 39
Profit on disposal of assets in associate - (3)
Taxation on items above - current portion 18 1
Taxation on items above - deferred portion 182 (395)
Discontinued operations taxation on items above - (1)
(852) (30)
Cents per share (1)
Headline (loss) earnings (236) (9)
(1) Calculated on the basic weighted average number of ordinary shares.
Rounding of figures may result in computational discrepancies.
9. Number of shares
Quarter ended
Dec Sep Dec
2009 2009 2008
Unaudited Unaudited Unaudited
Authorised number of shares:
Ordinary shares of 25 SA
cents each 600,000,000 600,000,000 400,000,000
E ordinary shares of 25 SA
cents each 4,280,000 4,280,000 4,280,000
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 and fully paid number
of shares:
Ordinary shares in issue 362,240,669 362,003,085 353,483,410
E ordinary shares in issue 3,794,998 3,832,568 3,966,941
Total ordinary shares: 366,035,667 365,835,653 357,450,351
A redeemable preference shares 2,000,000 2,000,000 2,000,000
B redeemable preference shares 778,896 778,896 778,896
In calculating the diluted
number of ordinary shares
outstanding for the
period, the following were
taken into consideration:
Ordinary shares 362,137,200 356,194,586 351,517,689
E ordinary shares 3,809,476 3,848,172 3,980,034
Fully vested options 539,666 622,613 440,430
Weighted average number of
shares 366,486,342 360,665,371 355,938,153
Dilutive potential of share
options 1,205,730 - -
Diluted number of ordinary
shares (1) 367,692,072 360,665,371 355,938,153
Year ended
Dec Dec
2009 2008
Unaudited Audited
Authorised number of shares:
Ordinary shares of 25 SA cents each 600,000,000 400,000,000
E ordinary shares of 25 SA cents each 4,280,000 4,280,000
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 and fully paid number of shares:
Ordinary shares in issue 362,240,669 353,483,410
E ordinary shares in issue 3,794,998 3,966,941
Total ordinary shares: 366,035,667 357,450,351
A redeemable preference shares 2,000,000 2,000,000
B redeemable preference shares 778,896 778,896
In calculating the diluted number of ordinary
shares outstanding for the
period, the following were taken into
consideration:
Ordinary shares 356,563,773 312,610,124
E ordinary shares 3,873,169 4,046,364
Fully vested options 791,353 547,460
Weighted average number of shares 361,228,295 317,203,948
Dilutive potential of share options - -
Diluted number of ordinary shares (1) 361,228,295 317,203,948
(1) The basic and diluted number of ordinary shares is the same for the
September 2009 quarter, December 2008 quarter and years ended December 2009 and
December 2008 as the effects of shares for performance related options are anti
-dilutive.
10. Share capital and premium
As at
Dec Sep Dec
2009 2009 2008
Unaudited Unaudited Unaudited
SA Rand million
Balance at beginning of period 38,246 38,246 23,322
Ordinary shares issued 2,438 2,409 14,946
E ordinary shares cancelled (22) (17) (22)
Sub-total 40,662 40,638 38,246
Redeemable preference shares
held within the group (313) (313) (313)
Ordinary shares held within
the group (212) (258) (272)
E ordinary shares held within
group (303) (308) (325)
Balance at end of period 39,834 39,759 37,336
As at
Dec Sep Dec (1)
2009 2009 2008
Unaudited Unaudited Unaudited
US Dollar million
Balance at beginning of period 5,625 5,625 3,752
Ordinary shares issued 312 308 1,875
E ordinary shares cancelled (2) (2) (3)
Sub-total 5,935 5,931 5,625
Redeemable preference shares
held within the group (53) (53) (53)
Ordinary shares held within
the group (32) (38) (39)
E ordinary shares held within
group (45) (45) (47)
Balance at end of period 5,805 5,794 5,485
(1) During 2009, the group changed its accounting policy to account for equity
using historical rates of exchange. The effect of the change has been
calculated retrospectively.
11. Exchange rates
Dec Sep Dec
2009 2009 2008
Unaudited Unaudited Unaudited
ZAR/USD average for the year to date 8.39 8.70 8.25
ZAR/USD average for the quarter 7.47 7.77 9.92
ZAR/USD closing 7.44 7.51 9.46
ZAR/AUD average for the year to date 6.56 6.48 6.93
ZAR/AUD average for the quarter 6.80 6.47 6.67
ZAR/AUD closing 6.67 6.62 6.57
BRL/USD average for the year to date 2.00 2.08 1.84
BRL/USD average for the quarter 1.74 1.87 2.28
BRL/USD closing 1.75 1.77 2.34
ARS/USD average for the year to date 3.73 3.70 3.16
ARS/USD average for the quarter 3.81 3.83 3.33
ARS/USD closing 3.80 3.84 3.45
Rounding of figures may result in computational discrepancies.
12. Capital commitments
Dec Sep Dec
2009 2009 2008
Unaudited Unaudited Unaudited
SA Rand million
Orders placed and outstanding on capital
contracts at the prevailing rate of
exchange (1) 976 1,096 775
Dec Sep Dec
2009 2009 2008
Unaudited Unaudited Unaudited
US Dollar million
Orders placed and outstanding on capital
contracts at the prevailing rate of
exchange (1) 131 146 82
(1) Includes capital commitments relating to equity accounted joint ventures.
Liquidity and capital resources
To service the above capital commitments and other operational requirements,
the group is dependent on existing cash resources, cash generated from
operations and borrowing facilities.
Cash generated from operations is subject to operational, market and othe r
risks. Distributions from operations may be subject to foreign investment and
exchange control laws and regulations and the quantity of foreign exchange
available in offshore countries. In addition , distributions from joint
ventures are subject to the relevant board approval.
The credit facilities and other financing arrangements contain financial
covenants and other similar undertakings.
To the extent that external borrowings are required, the groups covenant
performance indicates that existing financing facilities will be available to
meet the above commitments. To the extent that any of the financing facilities
mature in the near future, the group believes that these facilities can be
refinanced.
13. Contingencies
AngloGold Ashanti`s material contingent liabilities and assets at 31 December
2009 are detailed below:
Contingencies and Guarantees (millions) SA rand US dollar
Contingent liabilities
Groundwater pollution - South Africa (1) - -
Deep groundwater pollution - South Africa (2) - -
Sales tax on gold deliveries - Brazil (3) 560 76
Other tax disputes - Brazil (4) 191 25
Withholding taxes - Ghana (5) 67 9
Contingent assets
Royalty - Boddington Gold Mine (6) - -
Insurance claim - Savuka Gold Mine (7) - -
Financial guarantees
Oro Group (Pty) Ltd (8) 100 13
918 123
AngloGold Ashanti is subject to contingencies pursuant to environmental laws
and regulations that may in future require the group to take corrective action
as follows:
(1) Groundwater pollution - South Africa - AngloGold Ashanti has identified
groundwater contamination plumes at its Vaal River and West Wits operations,
which have occurred primarily as a result of seepage from mine residue
stockpiles. Numerous scientific, technical and legal studies have been
undertaken since 2002 to assist in determining the magnitude of the
contamination and to find sustainable remediation solutions. The company has
instituted processes to reduce future potential seepage and it has been
demonstrated that Monitored Natural Attenuation (MNA) by the existing
environment will contribute to improvement in some instances. Furthermore,
literature reviews, field trials and base line modelling techniques suggest,
but are not yet proven, that the use of phyto-technologies can address the soil
and groundwater contamination at all South African operations. Subject to the
completion of trials and the technology being a proven remediation technique,
no reliable estimate can be made for the obligation at this time.
(2) Deep groundwater pollution - South Africa - AngloGold Ashanti has
identified a flooding and future pollution risk posed by deep groundwater in
the Klerksdorp and Far West Rand gold fields. Various studies have been
undertaken by AngloGold Ashanti since 1999. However, due to the interconnected
nature of mining operations, any proposed solution needs to be a combined one
that is supported by all the mines located in these gold fields.
Toward this the Department of Mineral Resources and affected mining companies
are now involved in the development of a "Regional Mine Closure Strategy".
Nevertheless, in view of the limitation of current information for the accurate
estimation of a liability, no reliable estimate can be made for the obligation
at this time.
(3) Sales tax on gold deliveries - Brazil - Mineracao Serra Grande S.A. (MSG),
received two tax assessments from the State of Goias related to payments of
sales taxes on gold deliveries for export. The MSG operation is co- owned with
Kinross Gold Corporation. AngloGold Ashanti Brasil Mineracao Ltda. manages the
operation and its attributable share of the first assessment is approximately
$47m. In November 2006 the administrative council`s second chamber ruled in
favour of MSG and fully cancelled the tax liability related to the first
period. The State of Goias has appealed to the full board of the State of Goias
tax administrative council. The second assessment was issued by the State of
Goias in October 2006 on the same grounds as the first one, and the
attributable share of the assessment is approximately $29m. The company
believes both assessments are in violation of Federal legislation on sales
taxes.
(4) MSG received a tax assessment in October 2003 from the State of Minas
Gerais related to sales taxes on gold. The tax administrators rejected the
company`s appeal against the assessment. The company is now appealing the
dismissal of the case. The company`s attributable share of the assessment is
approximately $8m.
AngloGold subsidiaries in Brazil are involved in various disputes with tax
authorities. These disputes involve federal tax assessments including income
tax, royalties, social contributions and annual property tax. The amount
involved is approximately $17m.
(5) Withholding Taxes - Ghana - AngloGold Ashanti (Ghana) Limited received a
tax assessment for $9m during September 2009 following an audit by the tax
authorities related to indirect taxes on various items. Management is of the
opinion that the indirect taxes are not payable and the company has lodged an
objection.
(6) As a result of the sale of the interest in the Boddington Gold Mine joint
venture during 2009, the group is entitled to receive a royalty on any gold
recovered or produced by the Boddington Gold Mine, where the gold price is in
excess of Boddington Gold Mine`s cash cost plus $600/oz. The royalty commences
on 1 July 2010 and is capped at a total amount of $100m, R744m.
(7) On 22 May 2009 an insurable event occurred at Savuka Gold Mine. The amounts
due from the insurers are subject to a formula based on lost production,
average gold price and average exchange rates subject to various excesses and
the production and the preparation of supportable data. The insurable amount is
not yet determinable, but management expects that it is likely to exceed $40m,
R297m and will be received during the first half of 2010.
(8) Provision of surety - South Africa - AngloGold Ashanti has provided
sureties in favour of a lender on a gold loan facility with its affiliate Oro
Group (Pty) Ltd and one of its subsidiaries to a maximum value of $13m, R100m.
The suretyship agreements have a termination notice period of 90 days.
14. Concentration of risk
There is a concentration of risk in respect of reimbursable value added tax and
fuel duties from the Tanzanian government:
Reimbursable value added tax due from the Tanzanian government amounts to $36m
at 31 December 2009 (30 September 2009: $25m). The last audited value added tax
return was for the period ended 31 October 2009 and at the reporting date the
audited amount was $28m. The outstanding amounts at Geita have been discounted
to their present value at a rate of 7.82%.
Reimbursable fuel duties from the Tanzanian government amounts to $48m at 31
December 2009 (30 September 2009: $48m). Fuel duty claims are required to be
submitted after consumption of the related fuel and are subject to
authorisation by the Customs and Excise authorities. Claims for refund of fuel
duties amounting to $44m have been lodged with the Customs and Excise
authorities, whilst claims for refund of $4m have not yet been lodged.
The outstanding amounts have been discounted to their present value at a rate
of 7.82%.
15. Change in accounting policy
In terms of IAS 21 "The Effects of Changes in Foreign Exchange Rates", the
group h as previously presented equity at the closing rate of exchange. During
the current year the group changed its accounting policy to account for equity
using historical rates of exchange. Management`s judgement is that the change
in accounting policy will provide more relevant and reliable information when
the group is compared to its gold mining peers, as they report their equity at
historical rates of exchange.
The effects of the change in accounting policy have been calculated
retrospectively and are as follows as at 31 December 2008 and 2007:
2008 2007
Share capital and premium - US Dollar million
Previously at closing rate 3,425 3,292
Restated at historical rate 3,752 3,713
Impact on translation 327 421
16. Borrowings
AngloGold Ashanti`s borrowings are interest bearing.
17. Announcements
On 25 November 2009, AngloGold Ashanti announced that the finalisation of the
sale of the Tau Lekoa mine together with the adjacent Weltevreden, Jonkerskraal
and Goedgenoeg project areas to Simmer and Jack Mines Limited, as announced on
17 February 2009, which was anticipated to close at the earliest on 1 January
2010 may be delayed. All suspensive conditions to the sale have been fulfilled
except for the approval of the Department of Mineral Resources (DMR) of the
transfer of the applicable mining rights. The approval is expected to occur
during 2010 and the duration of the interim period provided for in the sale
agreement will therefore be extended.
On 22 December 2009, AngloGold Ashanti reported the completion of the further
acquisition as announced on 2 November 2009 that, together with Randgold
Resources Limited ("Randgold`), they ha d jointly entered into an agreement
with L`Office des Mines d`Or de Kilo -Moto ("OKIMO") to purchase two-thirds of
OKIMO`s 30% stake in the Kibali gold project (formerly the Moto gold project)
for $113.6m (AngloGold Ashanti acquiring an effective additional 10% interest
for $56.8m). This follows an announcement on 15 October 2009 that, together
with Randgold, it had completed the acquisition of Moto Goldmines Limited, the
gold exploration and development company which held a 70% interest in the
project. OKIMO is a Congolese parastatal entity. Following completion of the
transaction, Randgold and AngloGold Ashanti together hold a 90% interest in
the project, and OKIMO hold s the remaining 10% stake, maintaining the
continued vested interest of the Government of the Democratic Republic of the
Congo (the "DRC") in the Kibali gold project.
On 29 December 2009, AngloGold Ashanti Limited announced that in terms of its
pre-emptive rights, it together with IAMGOLD Corporation had closed a
transaction with the International Finance Corporation ("IFC") for the purchase
of the IFC`s 6% stake in Societe d`Exploitation des Mines d`or de Sadiola
("SEMOS"), which owns the Sadiola Gold Mine for a total upfront consideration
of $24m (AngloGold Ashanti $12m) to be followed by contingent payments during
2010, 2011 and 2012 not exceeding in total $3m (AngloGold Ashanti $1.5m). This
transaction has resulted in AngloGold Ashanti and IAMGOLD each increasing their
respective interest in Sadiola from 38% to 41%. In addition, AngloGold Ashanti
and IAMGOLD have extended an offer to the Republic of Mali to take up its
proportionate entitlement of 19.15% of the 6% sale interest, by acquiring an
equal 0.574% interest in SEMOS from each of them on terms proportionately
identical to those set out above, on or before 31 March 2010.
18. Dividend
The directors declared Final Dividend No. 107 of 70 (Final Dividend No. 105:
50) South African cents per ordinary share for the year ended 31 December 2009.
In compliance with the requirements of Strate, given the company`s primary
listing on the JSE Limited, 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
2010
Currency conversion date for UK pounds, Australian
dollars and Ghanaian cedis Thursday, 4 March
Last date to trade ordinary shares cum dividend Friday, 5 March
Last date to register transfers of certificated
securities cum dividend Friday, 5 March
Ordinary shares trade ex dividend Monday, 8 March
Record date Friday, 12 March
Payment date Friday, 19 March
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, 8 March 2010
and Friday, 12 March 2010, 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.
2010
Ex dividend on New York Stock Exchange Wednesday, 10 March
Record date Friday, 12 March
Approximate date for currency conversion Friday, 19 March
Approximate payment date of dividend Monday, 29 March
Assuming an exchange rate of R7.69/$, the dividend payable per ADS is
equivalent to 9.10 US cents. This compares with the final dividend of 4.99 US
cents per ADS paid on 23 March 2009. 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.
2010
Last date to trade and to register GhDSs cum dividend Friday, 5 March
GhDSs trade ex dividend Monday, 8 March
Record date Friday, 12 March
Approximate payment date of dividend Monday, 22 March
Assuming an exchange rate of R1/Cents (USD)0.1863, the dividend payable per GhDS
is
equivalent to 0.1304 cedis. This compares with the final dividend of 0.06565
cedis per Ghanaian Depositary Share (GhDS) paid on 16 March 2009.
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%.
In addition, directors declared Dividend No. E7 of 35 South African cents per E
ordinary share, payable to employees participating in the Bokamoso ESOP and
Izingwe Holdings (Proprietary) Limited. These dividends will be paid on Friday,
19 March 2010.
19. 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 M CUTIFANI
Chairman Chief Executive Officer
16 February 2010
Shareholders` notice board
Diary:
Financial year-end 31 December
Annual financial statements posting on or about 26 March 2010
Annual general meeting 11:00 SA time 7 May 2010
Quarterly reports released:
Quarter ended 31 March 2010 7 May 2010
Quarter ended 30 June 2010 12 August 2010
Quarter ended 30 September 2010 11 November 2010
Quarter ended 31 December 2010 *10 February 2011
Dividends / Declared Last date to trade
Dividend Number ordinary shares
cum dividend
Interim - No. 106 29 July 2009 14 August 2009
Final - No. 107 16 February 2010 5 March 2010
Interim- No. 108 *10 August 2010 *27 August 2010
Dividends / Payment date to Payment date to ADS
Dividend Number shareholders holders
Interim - No. 106 28 August 2009 8 September 2009
Final - No. 107 19 March 2010 29 March 2010
Interim- No. 108 *10 September 2010 *20 September 2010
* Proposed dates.
Dividend policy: Dividends are proposed by, and approved by the board of
directors of AngloGold Ashanti , based on the interim and year-end financial
statements. Dividends are recognised when declared by the board of directors of
AngloGold Ashanti. AngloGold Ashanti expects to continue to pay dividends,
although there can be no assurance that dividends will be paid in the future or
as to the particular amounts that will be paid from year to year. The payments
of future dividends will depend upon the Board`s ongoing assessment of
AngloGold Ashanti`s earnings, after providing for long-term growth and
cash/debt resources, the amount of reserves available for dividend using going
concern assessment and restrictions placed by the conditions of the convertible
bond and other factors.
Withholding tax: On 21 February 2007, the South African Government announced a
proposal to replace Secondary Tax on Companies with a 10% withholding tax on
dividends and other distributions payable to shareholders. This proposal is
expected to be implemented in 2010. Although this may reduce the tax payable
by the South African operations of the group thereby increasing distributable
earnings, the withholding tax will generally reduce the amount of dividends or
other distributions received by AngloGold Ashanti shareholders.
Annual general meeting: Shareholders on the South African register who have
dematerialised their shares in the company (other than those shareholders whose
shareholding is recorded in their own name in the sub -register maintained by
their CSDP) and who wish to attend the annual general meeting in person, will
need to request their CSDP or broker to provide them with the necessary
authority in terms of the custody agreement entered into between them and the
CSDP or broker.
Voting rights: The articles of association provide that every member present at
a meeting in person or, in the case of a body corporate, represented, is
entitled to one vote only on a show of hands. Upon a poll, members present or
any duly appointed proxy shall have one vote for every share held. There are no
limitations on the right of non -South African shareholders to hold or exercise
voting rights attaching to any shares of the company. CDI holders are not
entitled to vote in person at meetings, but may vote by way of proxy. Options
granted in terms of share incentive schemes do not carry a right to vote.
Change of details: Shareholders are reminded that the onus is on them to keep
the company , through its nominated share registrars, apprised of any change in
their postal address and personal particulars. Similarly, where shareholders
receive dividend payments electronically (EFT), they should ensure that the
banking details which the share registrars and/or CSDPs have on file are
correct.
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
GhSE (Shares): AGA
GhSE (GhDS): AAD
Euronext Paris: VA
Euronext Brussels: ANG
JSE Sponsor: UBS
Auditors: Ernst & Young Inc
Offices
Registered and Corporate
76 Jeppe Street
Newtown 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 4602
Fax: +61 8 9425 4662
Ghana
Gold House
Patrice Lumumba Road
(PO 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
E-mail: jane.kirton@corpserv.co.uk
Directors
Executive
M Cutifani
(Chief Executive Officer)
S Venkatakrishnan * (Chief Financial
Officer)
Non-Executive
R P Edey * (Chairman)
Dr T J Motlatsi (Deputy Chairman)
F B Arisman #
W A Nairn
Prof W L Nkuhlu
S M Pityana
* British # American
Australian South African
Officers
Company Secretary: Ms L Eatwell
Investor Relations Contacts
South Africa
Sicelo Ntuli
Telephone: +27 11 637 6339
Fax: +27 11 637 6400
E-mail: sntuli@AngloGoldAshanti.com
United States
Stewart Bailey
Telephone: +1-212-836-4303
Mobile: +1-646-717-3978
E-mail: sbailey@AngloGoldAshanti.com
General E-mail enquiries
investors@AngloGoldAshanti.com
AngloGold Ashanti website
http://www.AngloGoldAshanti.com
Company secretarial E-mail
Companysecretary@AngoGoldAshanti.com
AngloGold Ashanti posts information that is important to investors on the main
page of its website at www.anglogoldashanti.com and under the "Investors" tab
on the main page. This information is updated regularly. Investors should visit
this website to obtain important information about AngloGold Ashanti.
Share Registrars
South Africa
Computershare Investor Services (Pty)
Limited
Ground Floor, 70 Marshall Street
Johannesburg 2001
(PO Box 61051, Marshalltown 2107)
South Africa
Telephone: 0861 100 950 (in SA)
Fax: +27 11 688 5218
web.queries@computershare.co.za
United Kingdom
Computershare Investor Services PLC
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 2949 (in Australia)
Fax: +61 8 9323 2033
Ghana
NTHC Limited
Martco House
Off Kwame Nkrumah Avenue
PO Box K1A 9563 Airport
Accra
Ghana
Telephone: +233 21 229664
Fax: +233 21 229975
ADR Depositary
The Bank of New York Mellon ("BoNY")
BNY Shareowner Services
PO Box 358016
Pittsburgh, PA 15252-8016
United States of America
Telephone: +1 800 522 6645 (Toll free
in USA) or +1 201 680 6578 (outside
USA)
E-mail: shrrelations@mellon.com
Website:
www.bnymellon.com.comshareowner
Global BuyDIRECTSM
BoNY maintains a direct share purchase
and dividend reinvestment plan for
ANGLOGOLD ASHANTI.
Telephone: +1-888-BNY-ADRS
Certain statements made in this communication, including, without limitation,
those concerning AngloGold Ashanti`s strategy t o reduce its gold hedging
position including the extent and effects of the reduction, the economic
outlook for the gold mining industry, expectations regarding gold prices,
production, cash costs and other operating results, growth prospects and
outlook of AngloGold Ashanti`s operations, individually or in the aggregate,
including the completion and commencement of commercial operations of certain
of AngloGold Ashanti`s exploration and production projects and completion of
acquisitions and dispositions, AngloGold Ashanti`s liquidity and capital
resources, and expenditure and the outcome and consequences of any pending
litigation proceedings, contain certain forward -looking statements regarding
AngloGold Ashanti`s operations, economic performance and financial condition.
Although AngloGold Ashanti believest hat 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 of such factors,
refer to AngloGold Ashanti`s annual report for the y ear ended 31 December
2008, which was distributed to shareholders on 27 March 2009 and the company`s
annual report on Form 20-F, filed with the Securities and Exchange Commission
in the United States on May 5, 2009 and amended on May 6, 2009. AngloGold
Ashanti undertakes no obligation to update publicly or release any revisions to
these forward-looking statements to reflect events or circumstances after
today`s date 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. AngloGold Ashanti posts information that is
important to investors on the main page of its website at
www.anglgoldashanti.com and under the "Investors" tab on the main page. This
information is updated regularly. Investors should visit this website to obtain
important information about AngloGold Ashanti.
PUBLISHED BY ANGLOGOLD ASHANTI
PRINTED BY INCE (PTY) LIMITED
Date: 17/02/2010 07:58:02 Supplied by www.sharenet.co.za
Produced by the JSE SENS Department.
The SENS service is an information dissemination service administered by the
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or
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completeness of the information published on SENS. The JSE, their officers,
employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature,
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