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ANG - Anglogold Ashanti Limited - Report for the quarter ended 31 March 2012
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
JSE Sponsor: UBS
Report for the quarter ended 31 March 2012
Group results for the quarter....
- Growth projects worth $1.9bn approved - Cripple Creek, Kibali and Mongbwalu.
- Adjusted headline earnings double year-on-year to $429m, or 111 US cents a
share.
- Profit attributable to equity shareholders more than doubles year-on-year to
$563m.
- EBITDA up 39% year-on-year to $800m compared to 22% average rise in gold
price.
- Quarterly dividend declared of 100 South African cents per share
(approximately 13 US cents per share).
- Total cash costs of $794/oz, better than guidance assisted by weaker local
currencies and expenditure phasing.
- Production down 6% year-on-year to 981,000oz; due to safety stoppages in South
Africa; other regions met plans.
- La Colosa resource increases by a further 48%, or 7.9Moz, to 24.15Moz.
- Significant new resource potential emerging in Colombia, Guinea and Djibouti.
- Agreed to buy Mine Waste Solutions, a gold and uranium business, from First
Uranium Corp. for $335m in cash.
Quarter
ended ended
Mar Dec
2012 2011
US dollar / Imperial
Operating review
Gold
Produced - oz (000) 981 1,114
Price received 1 - $/oz 1,692 1,684
Total cash costs - $/oz 794 762
Total production costs - $/oz 999 1,065
Financial review
Gross profit - $m 717 682
Profit attributable to equity shareholders - $m 563 385
- cents/share 146 100
Headline earnings - $m 551 289
- cents/share 142 75
Adjusted headline earnings 2 - $m 429 295
- cents/share 111 76
Cash flow from operating activities - $m 581 644
Capital expenditure - $m 354 525
Year
ended ended
Mar Dec
2011 2011
US dollar / Imperial
Operating review
Gold
Produced - oz (000) 1,039 4,331
Price received 1 - $/oz 1,391 1,576
Total cash costs - $/oz 706 728
Total production costs - $/oz 893 950
Financial review
Gross profit - $m 498 2,623
Profit attributable to equity shareholders - $m 241 1,552
- cents/share 62 402
Headline earnings - $m 241 1,484
- cents/share 62 384
Adjusted headline earnings 2 - $m 203 1,297
- cents/share 53 336
Cash flow from operating activities - $m 513 2,655
Capital expenditure - $m 249 1,527
Notes:
1. Refer to note B "Non-GAAP disclosure" for the definition.
2. Refer to note A "Non-GAAP disclosure" for the definition.
$ represents US dollar, unless otherwise stated.
Rounding of figures may result in computational discrepancies.
Certain statements made in this communication, other than statements of
historical fact, including, without limitation, those concerning 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 the completion of acquisitions
and dispositions, AngloGold Ashanti`s liquidity and capital resources and
capital expenditure and the outcome and consequence of any potential or pending
litigation or regulatory proceedings or environmental issues, are forward-
looking statements or forecasts regarding AngloGold Ashanti`s operations,
economic performance and financial condition. These forward-looking statements
or forecasts involve known and unknown risks, uncertainties and other factors
that may cause AngloGold Ashanti`s actual results, performance or achievements
to differ materially from the anticipated results, performance or achievements
expressed or implied in these forward-looking statements. Although AngloGold
Ashanti believes that the expectations reflected in such forward-looking
statements and forecasts 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 including environmental approvals and actions,
fluctuations in gold prices and exchange rates, and business and operational
risk management. For a discussion of certain of these and other factors, refer
to AngloGold Ashanti`s annual report for the year ended 31 December 2011, which
was distributed to shareholders on 4 April 2012 and the company`s 2011 annual
report on Form 20-F, which was filed with the Securities and Exchange Commission
in the United States on 23 April 2012. These factors are not necessarily all of
the important factors that could cause AngloGold Ashanti`s actual results to
differ materially from those expressed in any forward-looking statements. Other
unknown or unpredictable factors could also have material adverse effects on
future results. Consequently, stakeholders are cautioned not to place undue
reliance on forward-looking statements. 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, except to the extent required by
applicable law. 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.
This communication may contain certain "Non-GAAP" financial measures. AngloGold
Ashanti utilises certain Non-GAAP performance measures and ratios in managing
its business. Non-GAAP financial measures should be viewed in addition to, and
not as an alternative for, the reported operating results or cash flow from
operations or any other measures of performance prepared in accordance with
IFRS. In addition, the presentation of these measures may not be comparable to
similarly titled measures other companies may use.
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.
Operations at a glance
for the quarter ended 31 March 2012
Production
Year-on-year Qtr on Qtr
oz (000) % Variance 1 % Variance 2
SOUTH AFRICA 306 (24) (23)
Great Noligwa 17 (23) (15)
Kopanang 34 (58) (48)
Moab Khotsong 39 (43) (25)
Mponeng 111 (6) (20)
Savuka 10 (9) (23)
TauTona 54 - (25)
Surface Operations 40 (17) 8
CONTINENTAL AFRICA 382 5 (9)
Ghana
Iduapriem 45 (20) (10)
Obuasi 61 (13) (25)
Guinea
Siguiri - Attr. 85% 56 (14) (10)
Mali
Morila - Attr. 40% 3 22 - (21)
Sadiola - Attr. 41% 3 25 (17) (11)
Yatela - Attr. 40% 3 7 - -
Namibia
Navachab 20 18 5
Tanzania
Geita 146 55 1
Non-controlling interests,
exploration and other
AUSTRALASIA 68 (6) 8
Australia
Sunrise Dam 68 (6) 8
Exploration and other
AMERICAS 225 11 (4)
Argentina
Cerro Vanguardia - Attr. 92.50% 51 13 -
Brazil
AngloGold Ashanti Mineracao 88 5 (3)
Serra Grande - Attr. 50% 16 (6) (24)
United States of America
Cripple Creek & Victor 70 23 (1)
Non-controlling interests,
exploration and other
OTHER
Sub-total 981 (6) (12)
Equity accounted investments
included above
AngloGold Ashanti
Total cash costs
Year-on-year Qtr on Qtr
$/oz % Variance 1 % Variance 2
SOUTH AFRICA 849 33 22
Great Noligwa 1,552 29 21
Kopanang 1,171 99 53
Moab Khotsong 1,044 78 27
Mponeng 586 14 13
Savuka 933 12 15
TauTona 883 3 28
Surface Operations 736 36 3
CONTINENTAL AFRICA 817 - 2
Ghana
Iduapriem 1,028 44 6
Obuasi 1,112 10 24
Guinea
Siguiri - Attr. 85% 921 36 (12)
Mali
Morila - Attr. 40% 3 705 (15) (9)
Sadiola - Attr. 41% 3 971 39 (4)
Yatela - Attr. 40% 3 1,795 29 (6)
Namibia
Navachab 889 (7) (4)
Tanzania
Geita 534 (35) 10
Non-controlling interests,
exploration and other
AUSTRALASIA 1,290 12 (13)
Australia
Sunrise Dam 1,218 12 (12)
Exploration and other
AMERICAS 534 11 (13)
Argentina
Cerro Vanguardia - Attr. 92.50% 273 (37) (53)
Brazil
AngloGold Ashanti Mineracao 586 32 (2)
Serra Grande - Attr. 50% 850 20 36
United States of America
Cripple Creek & Victor 578 17 (10)
Non-controlling interests,
exploration and other
OTHER
Sub-total 794 12 4
Equity accounted investments
included abov
AngloGold Ashanti
Gross profit (loss)
Year-on-year Qtr on Qtr
$m $m Variance 1 $m Variance 2
SOUTH AFRICA 182 (28) (138)
Great Noligwa (5) (3) (8)
Kopanang 9 (31) (38)
Moab Khotsong - (29) (26)
Mponeng 106 19 (39)
Savuka 7 1 (3)
TauTona 28 17 (26)
Surface Operations 38 (2) 3
CONTINENTAL AFRICA 317 155 110
Ghana
Iduapriem 22 (2) 2
Obuasi 26 12 45
Guinea
Siguiri - Attr. 85% 45 - 20
Mali
Morila - Attr. 40% 3 21 10 (2)
Sadiola - Attr. 41% 3 16 (4) (2)
Yatela - Attr. 40% 3 (1) (1) 2
Namibia
Navachab 14 8 5
Tanzania
Geita 170 134 42
Non-controlling interests,
exploration and other 5 (2) (1)
AUSTRALASIA 17 12 26
Australia
Sunrise Dam 22 11 24
Exploration and other (5) - 1
AMERICAS 234 76 48
Argentina
Cerro Vanguardia - Attr. 92.50% 66 34 36
Brazil
AngloGold Ashanti Mineracao 77 11 9
Serra Grande - Attr. 50% 11 5 (3)
United States of America
Cripple Creek & Victor 64 22 4
Non-controlling interests,
exploration and other 15 5 -
OTHER 3 10 (13)
Sub-total 753 224 33
Equity accounted investments
included abov (36) (5) 2
AngloGold Ashanti 717 219 35
1 Variance March 2012 quarter on March 2011 quarter - increase (decrease).
2 Variance March 2012 quarter on December 2011 quarter - increase (decrease).
3 Equity accounted joint ventures.
Rounding of figures may result in computational discrepancies.
Financial and Operating Report
OVERVIEW FOR THE QUARTER
FINANCIAL REVIEW
First quarter adjusted headline earnings (AHE) more than doubled to $429m, or
111 US cents a share, from $203m, or 53 US cents per share in the first quarter
of 2011. Despite lower production year-on-year resulting from safety-related
stoppages in South Africa, earnings benefited from of a higher gold price,
improved operating margins and a $90m net tax credit. (The $131m tax credit
stems from a lower effective tax rate in South Africa, which was partially
offset by a $41m tax charge resulting from an increased effective tax rate in
Ghana.)
Profit attributable to equity shareholders also more than doubled to $563m for
the quarter, compared with $241m in the same period in 2011. Earnings before
interest, tax, depreciation and amortisation (EBITDA) at $800m in the first
quarter of 2012, was 39% higher than the corresponding period a year earlier.
Average gold price rose only 22% over this period.
Strong performances from the key assets within the Continental Africa and
Americas regions, along with the higher gold price and slightly weaker producer
currencies, drove the robust earnings growth and cash flow generation. As
indicated in the announcement of 10 April, the company`s South African mines
faced a challenging quarter given the slow start-up after the Christmas break as
well as disruptions from several safety-related stoppages.
Cash flow generated from operating activities rose to $581m from $513m the
previous year. Free cash flow, after all capital expenditure, finance costs and
tax, but before dividends paid, was $185m. Total capital expenditure was $354m
(including joint ventures) in the first quarter. Annual capital expenditure,
which is forecast at between $2.2bn and $2.3bn for 2012, typically increases
quarterly capital spend each quarter through the year. The strong fundamental
cash flow during the first quarter helped reduce net debt (excluding the
mandatory convertible bond) by 21% to $483m at the end of March, from $610m at
the end of 2011. AngloGold Ashanti expects net debt to increase by year-end,
after taking into account the rising project capital expenditure profile for the
remainder of 2012, as well as cash earmarked for completion of the acquisition`s
of Mine Waste Solutions from First Uranium ($335m).
Maintaining the integrity of AngloGold Ashanti`s balance sheet is a strategic
priority given its direct impact on the company`s cost of capital and the
company`s ability to fund its growth projects. During the quarter, Moody`s
Investors Service upgraded the issuer rating of AngloGold Ashanti`s investment-
grade rated bonds by one level to Baa2, from Baa3. The change is an
acknowledgement of the fundamental operating improvements implemented across
AngloGold Ashanti`s portfolio through the roll-out of Project ONE, as well as
the continued strengthening of its balance sheet.
DIVIDEND
AngloGold Ashanti is focused on improving the cash returns to shareholders
whilst considering cash flow, investment needs and the financial strength of the
business in the context of delivering on its business plan and strategic growth
objectives. The Board has therefore declared a dividend of 100 South African
cents per share (approximately 13 US cents per share) for the first quarter in
line with previous guidance. The Board will continue to keep the level of return
to shareholders under close review and will remain flexible as to the most
effective way to achieve this.
"We expect our robust earnings and cash flow to help us fund our growth to more
than 5.4Moz in the coming years," Chief Executive Officer Mark Cutifani said.
"With self-funded growth, healthy margins and a steady dividend, we think our
stock presents compelling value."
OPERATING RESULTS
Production for the three months to 31 March 2012 was 981,000oz at a total cash
cost of $794/oz. This compares with production of 1.039Moz at $706/oz in the
first quarter of 2011 and guidance of 1.03Moz at total cash costs of between
$820/oz and $835/oz. The first quarter production is traditionally the lowest
for South African gold producers, given the protracted Christmas break for all
mining employees and the slow start-up that follows in January. The first
quarter was also impacted by disruptions from relatively higher levels of safety
stoppages which further curtailed production from the Vaal River operations in
particular. Production was, however, bolstered by another strong performance
from Geita in Tanzania, which continued to reinforce its position as a global
tier-one gold asset and the group`s largest contributor for the period. There
were also good performances at Cripple Creek and Cerro Vanguardia.
SAFETY
Tragically, four fatalities occurred during the quarter in separate incidents at
Moab Khotsong, Mponeng and Savuka in South Africa and at Cerro Vanguardia in
Argentina. These incidents are acutely felt by all in the organisation and
remain the biggest challenge for the business. Key initiatives are under way to
make further improvements to safety to build on the improvements seen in the all
injury frequency rate (AIFR), which stood at 8.17 per million hours worked at
the end of March, the lowest in the company`s history, and a 16% improvement on
last year`s closing rate. All regions showed double-digit percentage
improvements in AIFR, indicating ongoing success in instilling a better safety
culture across AngloGold Ashanti. A safety leadership programme has been
launched to familiarise all leaders with new safety standards and guidelines to
ensure absolute familiarity with safety accountabilities and to further build
leadership skills in the field of safety. At the same time, a larger pool of
incident investigators are being trained across each business unit and a third-
party organisation has been mandated to develop a suite of risk management
training modules for roll-out over the coming six months.
As previously disclosed, AngloGold Ashanti`s operations have been negatively
affected by safety stoppages and the subsequent ramp-up associated with safely
restarting ultra-deep mining areas. In total, the company lost 54 full days and
144 partial days to safety-related stoppages across its South African operations
during the quarter. While overall safety performance has continued on an
improving trajectory over the past four years, AngloGold Ashanti will continue
to co-operate closely with the safety regulator in South Africa at both a
national and regional level to ensure all interventions take place in the most
constructive way possible in an effort to achieve the shared aim of `Zero Harm`
across all mining operations.
OPERATING REVIEW
The South African operations produced 306,000oz at a total cash cost of $849/oz
in the three months through 31 March 2012 compared with 401,000oz at a total
cash cost of $637/oz a year earlier. As mentioned above, the year-on-year
production and cost performance was impacted by Section 54 and safety stoppages
which cut output by 76,000oz, as well as increased power tariffs and higher
wages which were agreed in July of last year. At the West Wits Operations,
Mponeng`s production fell 6% year-on-year to 111,000oz due to the lower volumes
caused by the stoppages and increased seismicity, which were partially offset by
higher yields. Total cash costs rose 14% to $586/oz. At neighbouring TauTona,
output was unchanged from a year earlier at 54,000oz and the rise in total cash
costs was contained at 3% ($883/oz), despite increased seismicity and faulting.
At the Vaal River Operations, which were especially hard-hit by the Section 54
stoppages, Great Noligwa output fell 23% to 17,000oz as a result of the lower
area mined as well as declining yields. Total cash costs rose 29% to $1,552/oz.
Moab Khotsong`s costs almost doubled to $1,044/oz on the back of a 43% drop in
production, with the impact of disruptions exacerbated by challenges improving
face advance. Kopanang experienced a 58% year-on-year decline in production to
34,000oz, while total cash costs almost doubled to $1,171/oz. The Surface
Operations delivered a 17% decline in production to 40,000oz as a result of
lower yields and volumes.
The Continental Africa operations produced 382,000oz at a total cash cost of
$817/oz in the first quarter of 2012, compared with 363,000oz at a total cash
cost of $819/oz reported in the first quarter of 2011. Geita delivered another
strong quarter, despite lower tonnages mined, due to stronger recovered grades
from Nyankanga Cut 6 and improved utilisation of the Star and Comet Cut 2 areas.
Production was 55% higher at 146,000oz and total cash costs declined 35% to
$534/oz compared with the first quarter of 2011. At Obuasi, in Ghana, production
was 13% lower year-on-year at 61,000oz and total cash costs rose 10% to
$1,112/oz. The operation was impacted by frequent power interruptions and
fluctuations, as well as unplanned repairs to the base of the main shaft after a
cage slipped down the shaft from the lower-most loading point. The mine is
operating again at planned rates. Efficiencies from the implementation of
Project ONE helped offset the vast majority of the $101/oz increase in cash
costs due to power and wage increases. At Iduapriem, continued improvements in
plant availability helped offset the planned decline in grade. Production
declined by 20% year-on-year to 45,000oz, and total cash costs were 44% higher
at $1,028/oz, which costs were also impacted by replacement of engineering
stores and increased contracting costs to remove boulders. At Siguiri, in
Guinea, production was 14% lower at 56,000oz, due to planned relining of the
plant and lower yield, partly offset by higher tonnages mined. Total cash costs
increased by 36% to $921/oz due to an increase in fuel price, power and labour
costs. At Morila, in Mali, while production was unchanged at 22,000oz, total
cash costs were 15% lower at $705/oz. At Sadiola, an extended mill shutdown
resulted in a year-on-year decline in production of 17% to 25,000oz, with total
cash costs 39% higher at $971/oz. At Navachab, in Namibia, higher grades from
the base of the pit helped an increase in production to 20,000oz and a 7%
improvement in cash costs to $889/oz.
The Americas operations produced 225,000oz at a total cash cost of $534/oz in
the first quarter of 2012, compared with 203,000oz at a total cash cost of
$480/oz a year earlier. At Corrego do Sitio Mineracao, production was 88,000oz,
the increase being limited to 5%, due to lower fleet availability, continued
geomechanical instability at Cuiaba and a slight delay in the start-up of the
milling circuit at Corrego do Sitio. Total cash costs rose 32% to $586/oz given
general inflationary pressure and a 19% drop in yield. At Serra Grande,
attributable production was marginally lower at 16,000oz and total cash costs
rose 20% to $850/oz. Cerro Vanguardia`s gold production rose 13% to 51,000oz and
total cash costs improved by 37% to $273/oz, the lowest in the group. The mine
benefited from higher silver by-product credits, higher feed grade and
improvements in fuel and lubricant use. At Cripple Creek & Victor, gold
production rose 23% year-on-year to 70,000oz due to the modified leach-pad
stacking plan which brings production forward to the first half of the year.
Total cash cost increased by 17% to $578/oz compared with the first quarter of
2011.
In Australasia, production from Sunrise Dam fell 6% to 68,000oz at a total cash
cost of $1,218/oz, compared with 72,000oz at $1,083/oz a year ago. Good grades
in the open pit and underground are helping the mine recover from a difficult
end to 2011, a year marred by flooding and a pit-wall failure during the first
half of 2011.
PROJECTS
AngloGold Ashanti incurred capital expenditure of $354m (including joint
ventures) during the quarter, of which $162m was spent on growth projects. Of
the growth-related capital, $53m was spent in the Americas, $47m was spent in
Continental Africa, $33m in Australasia and $28m in South Africa.
The board formally approved investment in several projects during the quarter,
creating a clear pathway for the growth in production to between 5.4Moz and
5.6Moz. Final approval was granted for the development of both key projects in
the Democratic Republic of the Congo, Kibali and Mongbwalu. Both projects are
expected to generate significant revenues for the DRC government and create
several thousand direct and indirect jobs for the country`s northeastern region.
Kibali, the joint venture between state-owned Sokimo (10%), AngloGold Ashanti
(45%) and operator Randgold Resources (45%), currently contains a reserve of
10Moz and an indicated and inferred resource of 18.6Moz. Recent drilling
indicates significant upside potential to those figures. The project expected to
require total project capital expenditure of $982m (attributable; including
contingencies and escalation), to fund development of the open pit and
underground mines, as well as associated infrastructure. The shareholders have
continued funding critical path items during the optimisation of the feasibility
study and in the lead-up to this approval in order to ensure no delays to the
project. The capital investment in Kibali`s development will be made between
2012 and 2015, with first gold from the open pit targeted for late 2013.
Development of the twin decline and vertical shaft system will run concurrently
with that of the open pit and the construction of three hydropower stations. The
project is expected to deliver average annual production in the first 10 years
following project ramp-up of around 600,000oz (270,000oz). Good progress was
made during the quarter with the Relocation Action Plan (RAP), which continued
with 717 families from three villages, of the 14 directly impacted by the mine,
resettled. At the end of March, construction of two schools and three places of
worship have been completed, and construction of the Catholic Church complex has
commenced. The earth moving and civil contractor mobilised on site has commenced
the earthworks at the metallurgical plant site and laydown areas, on schedule.
During the period a contractor was also appointed to design and manage
construction of the vertical shaft.
Mongbwalu (AngloGold Ashanti 86.22%), the joint venture with state-owned Sokimo,
is designed as a small-scale beachhead in the extremely prospective Kilo gold
belt, on a concession covering almost 6,000km2. AngloGold Ashanti plans to build
the underground project quickly and then expand the operation rapidly from
internally driven cash flow, allowing economies of scale to be realised. This
approach will limit the company`s initial capital exposure to a new mining
district. This project will require capital investment of $345m, including
contingency and a provision for cost escalation, and is expected to yield an
average of about 130,000oz of gold a year in the first three years of full
production at a total cash cost of $760/oz (nominal). Average output over a 10-
year mine life, assuming no expansion, would be about 105,000oz a year at a an
average total cash cost of $1,054/oz. The first stage of project development
will include construction of infrastructure that will support rapid future up-
scaling as further resources are defined. The early works programme at the site
progressed to schedule during the quarter, with 20% of road construction
completed and long-lead mill and mobile equipment items ordered.
The board has also approved the Mine Life Extension II (MLE2) project at Cripple
Creek & Victor in the US, which is expected to increase production at the mine
by about 50% to more than 400,000oz a year, starting 2017. Cash costs at CC&V
are expected to be around $770/oz at the expanded production rate. MLE2 is
expected to require project capital of $557m (in 2012 terms/real) to be spent
from 2012 to 2017 on construction of an additional leach pad, a mill to process
high-grade ore and a new gold plant. Initial earthworks are under way and the
permitting procedure is at an advanced stage. At Cripple Creek where a further
mine life extension project is envisaged toward the end of the decade, it is
expected that the mine will produce at an annual rate above 400,000oz from about
2017 until at least 2025, with a further decade of production at around
350,000oz a year.
At the Corrego do Sitio Sulphide Project, the plant, complete with its pressure
oxidation circuit was commissioned in mid-January 2012 and is now being
monitored and adjusted. The mine is in its ramp-up phase, with stabilisation
expected in the second half of 2012. At Corrego do Sitio, the `analyse &
improve` phase of Project ONE is in progress in the mining and heavy equipment
and engineering areas, and the plant is now in the stabilisation phase.
The Tropicana Gold Project (AngloGold Ashanti 70% and manager, Independence
Group 30%) remained on schedule to pour first gold during the December 2013
quarter, despite the challenges of the competitive construction sector in
Western Australia where approximately $167 billion of resource projects are
under construction or committed. By quarter end, engineering and drafting was
92% complete and 97% of equipment and materials had been procured. The 220km
long site access road was completed and processing plant earthworks were nearing
completion, ready for plant construction to begin in the June 2012 quarter. The
airstrip has been sealed and CASA approval is expected in the June 2012 quarter,
enabling the site to be serviced by 100 seat jet aircrafts. The Structural &
Mechanical (SMP) and Electrical & Instrumentation contracts are in the final
stages of negotiation. Mining contractor, Macmahon, began assembling heavy
mining equipment in Kalgoorlie ahead of mobilisation to site and a mining start
early in the second half.
Infill drilling of Havana Deeps returned intercepts including: HDD190 25.0m
@3.5g/t Au from 237m depth (incl. 10m at 7.9g/t Au from 251m); HDD 195 25m @
10.8g/t Au from 357m; and HDD197 7m @ 6.5g/t Au from 272m. An intercept of 17m @
2.6g/t Au (incl. 9m @ 4.3g/t Au) in HDD230 indicated potential for an extension
of the Havana Pit to the north.
EXPLORATION
Total exploration expenditure during the first quarter, inclusive of expenditure
at equity accounted joint ventures, was $99m ($32m on brownfield, $33m on
greenfield and $34m on pre-feasibility studies), compared with $71m in the first
quarter of 2011 ($26m on brownfield, $25m on greenfield and $20m on pre-
feasibility studies). The following are highlights from the company`s
exploration activities during the quarter. More detail on AngloGold Ashanti`s
exploration programme can be found at www.anglogoldashanti.com.
In Colombia, there was a significant upward revision in the resource at La
Colosa. A September 2011 cut-off data date was used for the Mineral Resource
estimate as at the end of 2011. The new Resource estimate, completed in January
2012, used drilling information for the remainder of last year. The revised
Mineral Resource estimate was externally audited in February 2012 and now stands
at 24.15Moz, an increase of 48% or 7.88Moz. The revised Mineral Resource is
based on a cut-off of 0.4g/t Au and a gold price of $1,600/oz.
Category Tonnes Grade Contained Gold
(Million) (g/t) Tonnes Moz
Inferred 800.50 0.94 751.20 24.15
During the quarter, 4,015m were drilled at La Colosa for geotechnical and
hydrological studies, with three drills operating for most of the quarter.
Positive assay results continued to return from holes drilled in late 2011 with
Borehole COL166 returning 26m @ 1.90g/t Au from 22m and 352m @ 1.45g/t Au from
52m. The planning for the next round of drill platforms and holes will
incorporate these results. At the Gramalote joint venture project, mapping and
sampling work continued around Gramalote area targets and potential facilities.
A new mineral resource estimate was determined for the Gramalote Central Zone
and Trinidad. Total measured and indicated resources at Gramalote Central at a
0.25g/t Au cut-off, within a $1,600/oz gold optimised Whittle pit consists of
97.1Mt grading 0.81g/t Au for a total of 2.5Moz of gold. The Gramalote Central
and Trinidad inferred Resource is 95.7Mt grading 0.44 g/t Au for a total of
1.36Moz of gold using similar parameters as the measured and indicated resource.
Highlights from the 2011 and 2012 pre-feasibility and exploration work to date
on the Gramalote property include positive metallurgical test results showing in
excess of 90% recovery and encouraging drill results from Gramalote Central and
outside targets indicating the potential for a larger Resource. Exploration
drilling has been carried out on five drill targets located within 4km of the
current Gramalote Central Mineral Resource including Monjas West, Trinidad
South, Monjas East, Limon and Topacio with the aim to add new inferred
Resources. All of these targets have similar geological, alteration and
mineralisation characteristics to Gramalote Central.
Positive gold intersections have been returned in Monjas West located 2km west
southwest along strike of Gramalote Central Resource. A total of 6,281.49m in 17
holes have been drilled at Monjas West with results up to 56.0m at 0.94g/t Au
(including 14.0m at 1.66g/t Au and 12.0m at 1.45g/t Au) in hole MW-05, 20.0m at
1.88g/t Au in hole MW-03, 22.0m at 0.93g/t Au in hole MW-04 and 12.0m at 1.75g/t
Au in hole MW-09.
Greenfield exploration in Colombia comprised mapping/sampling and drilling at
the Santa Rita target in the Rio Dulce block, and at the Quebradona project,
respectively. Drilling at the Nuevo Chaquiro target at Quebradona continues to
delineate porphyry style mineralisation. Drillhole CHA-019 yielded copper
mineralisation comprising quartz, chalcopyrite, bornite, magnetite veinlets and
disseminated molybdenite. An additional 20,000m of deep drilling (>1,000 m) is
being considered for the second half of 2012. An IP-magnetic ground geophysics
survey was underway at Quebradona, with preparations for a similar survey
scheduled for April 2012 at the Santa Rita target. Social work continues at the
Santa Ana and Cerro Gordo prospects, and environmental studies continue at
Montecristo prospect. A new ownership split has been agreed upon in the Guamoco
Joint Venture (JV), whereby both AngloGold Ashanti Colombia and Mineros each
have 50% ownership.
In Sub-Saharan Africa, generative exploration programmes were carried out in the
DRC, Guinea and Gabon.
In Guinea, exploration work continued with a focus on Resource definition and
delineation in Block 2 and reconnaissance and resource delineation in Block 3.
An extensive geochemical soil programme of 530 samples was completed over Block
2 at nominal 200m X 50m grid spacing. Encouraging geochemical anomalies were
reported from Didi and Manguity (Block 2), Kounkoun North and Kolita (Block3),
Doko and Kouremale (Block4). These areas are known as having historical and
recent artisanal mining activities. Mapping and ground truthing will continue
next quarter in order to decide on the follow-up programme.
Resources delineation and definition drilling progressed at Saraya with 9,000m
of drilling completed (136m AC; 5,070m RC; 3,794m DD), whilst reconnaissance
drilling at Saraya South resulted in 3,797m of RC being completed. Assay`s
received for drill programmes completed during the quarter returned peak results
of 16m@3.21g/t Au (SARC385) and 7.7m@3.78g/t Au (SARCDD023).
Reconnaissance and delineation drilling continued at Kounkoun (Block3),
with13,307m AC and 226.8m DD completed during the quarter. Assay results
returned to date show very encouraging intersections including, but not limited
to; 27m@1.19g/t Au (KKAC257), 36m@1.16g/t Au (KKA305), 68m@1.13g/t Au (KKA196)
and 42m@1.7g/t Au (KKAC239).
A reconnaissance aircore drill programme was completed at Doko (Block4) for
6,676m, targeting geochemical anomalies dispersed coincidently with a NNW-SSE
trending geophysical lineament. Assays returned to date show encouraging
intersections within the oxide zone of drillhole DKAC007; 9m@1.02g/t Au,
12m@1.78g/t Au (incl. 9m@2.20g/t Au).
Greenfields exploration in the Middle East & North Africa region is being
undertaken by Thani Ashanti; a 50:50 Strategic Alliance between AngloGold
Ashanti and Thani Investments. Exploration during the fourth quarter involved
diamond drilling at the Hutite and Anbat prospects, located on the Hodine
licence in Egypt. At Hutite, 3,486m of diamond drilling was completed, mainly
from the Central Domain and results were received from ten holes. Best results
include: 4m @ 18.28 g/t Au from 168m, 15m @ 5.28 g/t Au from 182m and 10.7m @
2.66 g/t Au from 200m in HUD034.
These intersections probably represent a continuous zone of mineralisation that
has been cut by a dolerite between 172 to 183m. From HUD036, intersections of
16m @ 3.2 g/t Au from 72m and 2m @ 17.16 g/t Au from 105m confirm the depth
extension of mineralisation beneath HUD004. From HUD032, significant
intersections include: 2m @ 5.78 g/t Au from 59m; 2m @ 4.24 g/t Au from 80m; and
1m @ 58.98 g/t Au from 86m. The mineralisation in the Central Domain is defined
over 1km of strike and down to 200m below surface. These encouraging results
have supported the decision to complete more aggressive drilling down to 900m
below surface to test the depth potential of the deposit.
Drilling of 3,498m was completed at the Anbat prospect, located 45km South-West
of Hutite. The drilling continued to test the veined granodiorite and also the
altered felsic porphyry on the eastern and South-East contact. The Au results
from the granodiorite are generally 1-3m @ 1-3g/t Au, although there are
occasional higher grade intersections (e.g. 1m @ 14.7g/t Au in AND007). However,
the results from the porphyry are more encouraging. Assay results have only been
received from one hole in the porphyry. This hole returned 9m @ 2.57g/t Au from
27m and 35m @ 1.01g/t Au from 40m. Drilling is now focused on understanding the
geometry and continuity of mineralisation in the porphyry.
Work completed at the Afar JV with Stratex International plc in Ethiopia and
Djibouti has involved helicopter reconnaissance and rock-chip sampling in
Djibouti and preparations for an aeromagnetic and radiometric survey at Megenta
(Ethiopia). The reconnaissance exploration in Djibouti has discovered the
Pandora vein. The vein system is within a 5km long structure with veins up to
2.5m wide. Best results from 43 channel-chip samples across main zone include
9.81, 9.97, 9.99, 10.05, 13.85, and 25.9 g/t Au. In addition, detailed sampling
of Hercules rhyolite domes at Asal returned 24m @ 0.68g/t Au and 1.8m @ 6.64g/t
Au confirming low to moderate disseminated gold mineralisation. Follow-up
drilling at both Pandora and Hercules is planned for the third quarter of 2012.
In Australia, the Tropicana JV (AngloGold Ashanti 70%, Independence Group 30%),
continued regional aircore drilling activities with 12,068m drilled. Results
received from diamond drilling conducted during late 2011 at the Voodoo Child
Prospect, located 45km north-east of the Tropicana Gold Mine, included a best
result of 12.4m @ 5.61g/t Au from 109m. Geological interpretation is in progress
to evaluate the potential for down plunge continuity to this mineralisation.
OUTLOOK
Gold production for the second quarter of 2012 is estimated at 1.04Moz. Total
cash costs are estimated at between $840-$845/oz at an average exchange rate of
R7.70/$, BRL1.73/$, A$0.97/$ and ARS4.40/$ and fuel at $125/barrel.
No change to gold production guidance for 2012 which is estimated at 4.3Moz to
4.4Moz on the back of a stronger second-half year. Total cash costs in 2012 are
estimated at between $780-$805/oz at an average exchange rate of R7.40/$,
BRL1.70/$, A$1.01/$ and ARS4.43/$ and fuel at $110/barrel.
As mentioned in the fourth quarter earnings release on 15 February 2012, the
situation remains that both estimates could see some downside risk in the light
of safety related and other unforeseen factors.
AngloGold Ashanti may not be able to reach the goals or meet the expectations
set out in this report. Refer to the disclaimer on the front page of this
report.
Group income statement
Quarter Quarter
ended ended
March December
2012 2011
US Dollar million Notes Reviewed Unaudited
Revenue 2 1,794 1,859
Gold income 1,706 1,779
Cost of sales 3 (989) (1,097)
Gain (loss) on non-hedge derivatives and other
commodity contracts - -
Gross profit 717 682
Corporate administration, marketing and other
expenses (67) (77)
Exploration costs (75) (83)
Other operating (expense) income 4 (8) 4
Special items 5 17 146
Operating profit 584 672
Interest received 12 23
Exchange (loss) gain (2) (10)
Fair value adjustment on option component of
convertible bonds 43 (15)
Finance costs and unwinding of obligations 6 (49) (48)
Fair value adjustment on mandatory convertible
bonds 79 9
Share of equity accounted investments` profit 22 17
Profit before taxation 689 648
Taxation 7 (111) (246)
Profit for the period 578 402
Allocated as follows:
Equity shareholders 563 385
Non-controlling interests 15 17
578 402
Basic earnings per ordinary share (cents) 1 146 100
Diluted earnings per ordinary share (cents) 2 110 95
Quarter Year
ended ended
March December
2011 2011
US Dollar million Unaudited Audited
Revenue 1,489 6,925
Gold income 1,422 6,570
Cost of sales (926) (3,946)
Gain (loss) on non-hedge derivatives and other
commodity contracts 2 (1)
Gross profit 498 2,623
Corporate administration, marketing and other
expenses (66) (278)
Exploration costs (57) (279)
Other operating (expense) income (13) (27)
Special items 1 163
Operating profit 363 2,202
Interest received 8 52
Exchange (loss) gain - 2
Fair value adjustment on option component of
convertible bonds 15 84
Finance costs and unwinding of obligations (49) (196)
Fair value adjustment on mandatory convertible
bonds 22 104
Share of equity accounted investments` profit 12 73
Profit before taxation 371 2,321
Taxation (123) (723)
Profit for the period 248 1,598
Allocated as follows:
Equity shareholders 241 1,552
Non-controlling interests 7 46
248 1,598
Basic earnings per ordinary share (cents) 1 62 402
Diluted earnings per ordinary share (cents) 2 54 346
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.
The reviewed financial statements for the quarter ended 31 March 2012 have been
prepared by the corporate accounting staff of AngloGold Ashanti Limited headed
by Mr John Edwin Staples, the Group`s Chief Accounting Officer. This process was
supervised by Mr Srinivasan Venkatakrishnan, the Group`s Chief Financial
Officer. The financial statements for the quarter ended 31 March 2012 were
reviewed, but not audited, by the Group`s statutory auditors, Ernst & Young Inc.
A copy of their unmodified review report is available for inspection at the
company`s head office.
Group statement of comprehensive income
Quarter Quarter Quarter Year
ended ended ended ended
March December March December
2012 2011 2011 2011
US Dollar million Reviewed Unaudited Unaudited Audited
Profit for the period 578 402 248 1,598
Exchange differences on
translation of foreign
operations 95 47 (48) (365)
Share of equity-accounted
investments` other
comprehensive loss - - - (1)
Net gain (loss) on
available-for-sale financial
assets 1 (10) (2) (81)
Release on disposal and
impairment of
available-for-sale financial
assets 1 3 - 22
Deferred taxation thereon - 3 - (8)
2 (4) (2) (67)
Actuarial loss recognised - (39) - (39)
Deferred taxation thereon (9) 14 - 14
(9) (25) - (25)
Other comprehensive income (loss)
for the period net of tax 88 18 (50) (458)
Total comprehensive income
for the period net of tax 666 420 198 1,140
Allocated as follows:
Equity shareholders 651 403 191 1,094
Non-controlling interests 15 17 7 46
666 420 198 1,140
Rounding of figures may result in computational discrepancies.
Group statement of financial position
As at As at As at
March December March
2012 2011 2011
US Dollar million Note Reviewed Audited Unaudited
ASSETS
Non-current assets
Tangible assets 6,763 6,525 6,132
Intangible assets 228 210 196
Investments in associates and
equity accounted joint ventures 765 702 641
Other investments 196 186 248
Inventories 421 410 363
Trade and other receivables 80 76 162
Deferred taxation 55 79 13
Cash restricted for use 24 23 19
Other non-current assets 10 9 10
8,542 8,220 7,784
Current assets
Inventories 1,083 1,064 899
Trade and other receivables 409 350 277
Derivatives - - 3
Current portion of other
non-current assets - - 4
Cash restricted for use 54 35 18
Cash and cash equivalents 1,216 1,112 619
2,762 2,561 1,820
Non-current assets held for sale 2 21 2
2,764 2,582 1,822
TOTAL ASSETS 11,306 10,802 9,606
EQUITY AND LIABILITIES
Share capital and premium 10 6,695 6,689 6,637
Retained earnings and other
reserves (1,103) (1,660) (2,483)
Shareholders` equity 5,592 5,029 4,154
Non-controlling interests 154 137 129
Total equity 5,746 5,166 4,283
Non-current liabilities
Borrowings 2,382 2,456 2,511
Environmental rehabilitation and
other provisions 796 782 595
Provision for pension and
post-retirement benefits 206 195 187
Trade, other payables and
deferred income 14 14 16
Derivatives 50 93 162
Deferred taxation 1,132 1,158 950
4,580 4,698 4,421
Current liabilities
Current portion of borrowings 53 32 46
Trade, other payables and
deferred income 720 751 687
Taxation 207 155 169
980 938 902
Total liabilities 5,560 5,636 5,323
TOTAL EQUITY AND LIABILITIES 11,306 10,802 9,606
Group statement of cash flows
Quarter Quarter Quarter Year
ended ended ended ended
March December March December
2012 2011 2011 2011
US Dollar million Reviewed Unaudited Unaudited Audited
Cash flow s from operating
activities
Receipts from customers 1,758 1,828 1,451 6,796
Payments to suppliers and
employees (1,085) (1,009) (950) (3,873)
Cash generated from
operations 673 819 501 2,923
Dividends received from
equity accounted investments 20 34 30 111
Taxation refund - 2 22 98
Taxation paid (112) (211) (40) (477)
Net cash inflow from
operating activities 581 644 513 2,655
Cash flow s from investing
activities
Capital expenditure (312) (455) (234) (1,393)
Interest capitalised and paid (2) - - -
Expenditure on intangible
assets (7) (10) - (16)
Proceeds from disposal of
tangible assets 1 7 2 19
Other investments acquired (39) (12) (31) (147)
Proceeds from disposal of
investments 36 12 15 91
Investment in associates and
equity accounted joint
ventures (45) (34) (24) (115)
Proceeds from disposal of
equity accounted joint venture 20 - - -
Loans advanced to associates
and equity accounted joint
ventures (15) (12) - (25)
Proceeds from disposal of
subsidiary - - 9 9
Cash in subsidiary disposed - - (11) (11)
(Increase) decrease in cash
restricted for use (18) 3 5 (19)
Interest received 10 10 8 39
Repayment of loans advanced - 1 - 4
Net cash outflow from
investing activities (371) (490) (261) (1,564)
Cash flow s from financing
activities
Proceeds from issue of share
capital - 6 1 10
Share issue expenses - - - (1)
Proceeds from borrowings - 3 - 109
Repayment of borrowings (4) (9) (152) (268)
Finance costs paid (15) (55) (18) (144)
Revolving credit facility
transaction costs (8) - - -
Dividends paid (101) (66) (43) (169)
Net cash outflow from
financing activities (128) (121) (212) (463)
Net increase in cash and
cash equivalents 82 33 40 628
Translation 22 4 (7) (102)
Cash and cash equivalents at
beginning of period 1,112 1,075 586 586
Cash and cash equivalents at
end of period 1,216 1,112 619 1,112
Cash generated from
operations
Profit before taxation 689 648 371 2,321
Adjusted for:
Movement on non-hedge
derivatives and other
commodity contracts - - (2) 1
Amortisation of tangible
assets 190 203 185 768
Finance costs and unwinding
of obligations 49 48 49 196
Environmental,
rehabilitation and other
expenditure (5) 142 - 171
Special items 2 (137) 7 (93)
Amortisation of intangible
assets 1 1 1 2
Deferred stripping (7) (7) 20 19
Fair value adjustment on
option component of
convertible bonds (43) 15 (15) (84)
Fair value adjustment on
mandatory convertible bonds (79) (9) (22) (104)
Interest received (12) (23) (8) (52)
Share of equity accounted
investments` profit (22) (17) (12) (73)
Other non-cash movements 22 4 7 21
Movements in working capital (112) (49) (80) (170)
673 819 501 2,923
Movements in w orking capital
Increase in inventories (30) (112) (17) (236)
(Increase) decrease in trade
and other receivables (54) 8 (66) -
(Decrease) increase in trade
and other payables (28) 55 3 66
(112) (49) (80) (170)
Rounding of figures may result in computational discrepancies.
Group statement of changes in equity
Equity holders of the parent
Share Cash
capital Other flow
and capital Retained hedge
US Dollar million premium reserves earnings reserve
Balance at 31 December 2010 6,627 194 (2,750) (2)
Profit for the period 241
Other comprehensive loss
Total comprehensive income (loss) - - 241 -
Shares issued 10
Share-based payment for share
awards net of exercised 5
Dividends paid (43)
Translation (5) 5
Balance at 31 March 2011 6,637 194 (2,547) (2)
Balance at 31 December 2011 6,689 171 (1,300) (2)
Profit for the period 563
Other comprehensive income (loss)
Total comprehensive income (loss) - - 563 -
Shares issued 6
Share-based payment for share awards
net of exercised 9
Dividends paid (101)
Translation 7 (7)
Balance at 31 March 2012 6,695 187 (845) (2)
Available Foreign
for Actuarial currency
sale (losses) translation
US Dollar million reserve gains reserve
Balance at 31 December 2010 86 (62) (104)
Profit for the period
Other comprehensive loss (2) (48)
Total comprehensive income (loss) (2) - (48)
Shares issued
Share-based payment for share awards
net of exercised
Dividends paid
Translation 1 1
Balance at 31 March 2011 85 (61) (152)
Balance at 31 December 2011 18 (78) (469)
Profit for the period
Other comprehensive income (loss) 2 (9) 95
Total comprehensive income (loss) 2 (9) 95
Shares issued
Share-based payment for share awards
net of exercised
Dividends paid
Translation 1 (3)
Balance at 31 March 2012 21 (90) (374)
Non-
controlling Total
US Dollar million Total interests equity
Balance at 31 December 2010 3,989 124 4,113
Profit for the period 241 7 248
Other comprehensive loss (50) (50)
Total comprehensive income (loss) 191 7 198
Shares issued 10 10
Share-based payment for share awards
net of exercised 5 5
Dividends paid (43) (43)
Translation 2 (2) -
Balance at 31 March 2011 4,154 129 4,283
Balance at 31 December 2011 5,029 137 5,166
Profit for the period 563 15 578
Other comprehensive income (loss) 88 88
Total comprehensive income (loss) 651 15 666
Shares issued 6 6
Share-based payment for share awards
net of exercised 9 9
Dividends paid (101) (101)
Translation (2) 2 -
Balance at 31 March 2012 5,592 154 5,746
Rounding of figures may result in computational discrepancies.
Segmental reporting
for the quarter ended 31 March 2012
AngloGold Ashanti`s operating segments are being reported based on the financial
information provided to the Chief Executive Officer and the Executive Management
team, collectively identified as the Chief Operating Decision Maker ("CODM").
Individual members of the Executive Management team are responsible for
geographic regions of the business.
Quarter ended Year ended
Mar Dec Mar Dec
2012 2011 2011 2011
Reviewed Unaudited Unaudited Audited
US Dollar million
Gold income
South Africa 524 672 560 2,560
Continental Africa 723 722 545 2,530
Australasia 115 103 97 385
Americas 432 392 303 1,487
1,793 1,889 1,505 6,962
Equity accounted investments
included above (87) (110) (82) (392)
1,706 1,779 1,422 6,570
Gross profit (loss)
South Africa 182 320 210 1,083
Continental Africa 317 207 163 938
Australasia 17 (9) 5 (13)
Americas 234 186 158 744
Corporate and other 3 16 (7) 28
753 720 529 2,780
Equity accounted investments
included above (36) (38) (31) (157)
717 682 498 2,623
Capital expenditure
South Africa 106 181 95 532
Continental Africa 122 152 62 420
Australasia 42 40 11 102
Americas 81 147 79 456
Corporate and other 3 5 2 17
354 525 249 1,527
Equity accounted investments
included above (35) (31) (15) (88)
319 494 234 1,439
Quarter ended Year ended
Mar Dec Mar Dec
2012 2011 2011 2011
Reviewed Unaudited Unaudited Audited
oz (000)
Gold production
South Africa 306 398 401 1,624
Continental Africa 382 419 363 1,570
Australasia 68 63 72 246
Americas 225 234 203 891
981 1,114 1,039 4,331
As at As at As at
Mar Dec Mar
2012 2011 2011
Reviewed Audited Unaudited
US Dollar million
Total assets
South Africa 2,301 2,148 2,406
Continental Africa 4,504 4,288 3,864
Australasia 753 736 591
Americas 2,612 2,501 2,166
Corporate and other 1,136 1,129 579
11,306 10,802 9,606
Rounding of figures may result in computational discrepancies.
Notes
for the quarter ended 31 March 2012
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
presentation currency detailed 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 2011 and
revised International Financial Reporting Standards (IFRS) which are effective 1
January 2012, where applicable. The effect of the revised and amended accounting
standards applicable to this period are not considered to have a material impact
on the financial statements of the group.
The financial statements of AngloGold Ashanti Limited have been prepared in
compliance with IAS 34, JSE Listings Requirements and in the manner required by
the South African Companies Act, 2008 for the preparation of financial
information of the group for the quarter ended 31 March 2012.
2. Revenue
Quarter ended Year ended
Mar Dec Mar Dec
2012 2011 2011 2011
Reviewed Unaudited Unaudited Audited
US Dollar million
Gold income 1,706 1,779 1,422 6,570
By-products (note 3) 61 49 51 224
Royalties received (note 5) 16 8 8 79
Interest received 12 23 8 52
1,794 1,859 1,489 6,925
3. Cost of sales
Quarter ended Year ended
Mar Dec Mar Dec
2012 2011 2011 2011
Reviewed Unaudited Unaudited Audited
US Dollar million
Cash operating costs (764) (788) (730) (3,029)
By-products revenue (note 2) 61 49 51 224
(703) (739) (679) (2,805)
Royalties (48) (51) (40) (193)
Other cash costs (8) (6) (7) (30)
Total cash costs (759) (796) (726) (3,028)
Retrenchment costs (3) (4) (4) (15)
Rehabilitation and other
non-cash costs (9) (157) (10) (229)
Production costs (771) (957) (740) (3,272)
Amortisation of tangible
assets (190) (203) (185) (768)
Amortisation of intangible
assets (1) (1) (1) (2)
Total production costs (962) (1,161) (925) (4,042)
Inventory change (27) 64 (1) 96
(989) (1,097) (926) (3,946)
4. Other operating (expense) income
Quarter ended Year ended
Mar Dec Mar Dec
2012 2011 2011 2011
Reviewed Unaudited Unaudited Audited
US Dollar million
Pension and medical defined
benefit provisions (5) 8 (4) (6)
Claims filed by former
employees in respect of loss
of employment, work-related
accident injuries and
diseases, governmental fiscal
claims and care
and maintenance of old
tailings operations (2) (4) (9) (21)
Miscellaneous (1) - - -
(8) 4 (13) (27)
Rounding of figures may result in computational discrepancies.
5. Special items
Quarter ended Year ended
Mar Dec Mar Dec
2012 2011 2011 2011
Reviewed Unaudited Unaudited Audited
US Dollar million
Net reversal (impairment) of
tangible assets (note 8) - 134 (1) 120
Impairment of investments
(note 8) (1) (3) - (21)
Impairment reversal of
intangible assets (note 8) 10 - - -
Reversal (impairment) of
other receivables - 2 (1) 1
Net loss on disposal and
derecognition of land,
mineral rights, tangible
assets and exploration
properties (note 8) (2) (5) (2) (8)
Black Economic Empowerment
transaction
modification costs for
Izingwe (Pty) Ltd - - - (7)
Royalties received (note 2) (1) 16 8 8 79
Insurance claim recovery on
capital items (note 8) - 3 - 3
Indirect tax expenses and
legal claims (6) 7 (5) (6)
Profit on disposal of
subsidiary ISS International
Limited (note 8) - - 2 2
17 146 1 163
(1) The December 2011 year includes the sale of the Ayanfuri royalty to Franco
Nevada Corporation for a pre-taxation amount of $35m.
6. Finance costs and unwinding of obligations
Quarter ended Year ended
Mar Dec Mar Dec
2012 2011 2011 2011
Reviewed Unaudited Unaudited Audited
US Dollar million
Finance costs (34) (34) (36) (141)
Unwinding of obligations,
accretion of convertible
bonds and other discounts (15) (14) (13) (55)
(49) (48) (49) (196)
7. Taxation
Quarter ended Year ended
Mar Dec Mar Dec
2012 2011 2011 2011
Reviewed Unaudited Unaudited Audited
US Dollar million
South African taxation
Mining tax (26) (71) - (113)
Non-mining tax - (7) (1) (12)
(Under) over prior year
provision (1) 2 (1) (4)
Deferred taxation
Temporary differences (12) (42) (58) (222)
Change in estimated deferred
tax rate - (9) - (9)
Change in statutory tax rate 131 - - -
93 (128) (60) (360)
Foreign taxation
Normal taxation (129) (64) (52) (275)
Over (under) prior year
provision 1 4 - (3)
Deferred taxation
Temporary differences (34) (57) (11) (85)
Change in estimated deferred
tax rate (41) - - -
(203) (118) (63) (363)
(111) (246) (123) (723)
Rounding of figures may result in computational discrepancies.
8. Headline earnings
Quarter ended Year ended
Mar Dec Mar Dec
2012 2011 2011 2011
Reviewed Unaudited Unaudited Audited
US Dollar million
The profit attributable to
equity shareholders has
been adjusted by the
following to arrive at
headline earnings:
Profit attributable to equity
shareholders 563 385 241 1,552
Net (reversal) impairment of
tangible assets (note 5) - (134) 1 (120)
Impairment reversal of
intangible assets (note 5) (10) - - -
Net loss on disposal and
derecognition of land,
mineral rights, tangible
assets and exploration
properties (note 5) 2 5 2 8
Impairment of investments
(note 5) 1 3 - 21
Profit on disposal of
subsidiary ISS International
Limited (note 5) - - (2) (2)
Insurance claim recovery on
capital items (note 5) - (3) - (3)
Impairment reversal of
investment in associates and
joint ventures (2) (6) - (4)
Special items of associate (3) - - -
Taxation on items above -
current portion - - - 1
Taxation on items above -
deferred portion - 38 (1) 31
551 289 241 1,484
Headline earnings per
ordinary share (cents) (1) 142 75 62 384
Diluted headline earnings per
ordinary share (cents) (2) 107 71 54 330
(1) Calculated on the basic weighted average number of ordinary shares.
(2) Calculated on the diluted weighted average number of ordinary shares.
9. Number of shares
Quarter ended
Mar Dec
2012 2011
Reviewed Unaudited
Authorised number of shares:
Ordinary shares of 25 SA cents each 600,000,000 600,000,000
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 382,399,018 382,242,343
E ordinary shares in issue 2,563,772 2,582,962
Total ordinary shares: 384,962,790 384,825,305
A redeemable preference shares 2,000,000 2,000,000
B redeemable preference shares 778,896 778,896
In calculating the basic and diluted number of
ordinary shares outstanding for the period,
the following were taken into consideration:
Ordinary shares 382,305,903 382,059,365
E ordinary shares 2,569,675 2,937,664
Fully vested options 1,970,339 1,121,745
Weighted average number of shares 386,845,917 386,118,774
Dilutive potential of share options 970,868 1,517,152
Dilutive potential of convertible bonds (1) 33,524,615 18,140,000
Diluted number of ordinary shares 421,341,400 405,775,926
Year ended
Mar Dec
2011 2011
Unaudited Audited
Authorised number of shares:
Ordinary shares of 25 SA cents each 600,000,000 600,000,000
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 381,403,955 382,242,343
E ordinary shares in issue 2,774,290 2,582,962
Total ordinary shares: 384,178,245 384,825,305
A redeemable preference shares 2,000,000 2,000,000
B redeemable preference shares 778,896 778,896
In calculating the basic and diluted number of
ordinary shares outstanding for the period, the
following were taken into consideration:
Ordinary shares 381,272,542 381,621,687
E ordinary shares 2,782,784 2,950,804
Fully vested options 1,587,017 1,389,122
Weighted average number of shares 385,642,343 385,961,613
Dilutive potential of share options 834,453 1,572,015
Dilutive potential of convertible bonds (1) 33,524,615 33,524,615
Diluted number of ordinary shares 420,001,411 421,058,243
(1) The dilutive effect of the convertible bonds are not the same for the
quarter and the year ended December 2011 as the effect of the 3.5% convertible
bond is anti-dilutive for the December 2011 quarter.
Rounding of figures may result in computational discrepancies.
10. Share capital and premium
As At
Mar Dec Mar
2012 2011 2011
Reviewed Audited Unaudited
US Dollar million
Balance at beginning of period 6,782 6,734 6,734
Ordinary shares issued 6 57 9
E ordinary shares issued and cancelled - (9) (1)
Sub-total 6,788 6,782 6,742
Redeemable preference shares held within
the group (53) (53) (53)
Ordinary shares held within the group (17) (17) (21)
E ordinary shares held within the group (23) (23) (31)
Balance at end of period 6,695 6,689 6,637
11. Exchange rates
Mar Dec Mar
2012 2011 2011
Unaudited Unaudited Unaudited
ZAR/USD average for the year to date 7.74 7.26 6.99
ZAR/USD average for the quarter 7.74 8.09 6.99
ZAR/USD closing 7.63 8.04 6.77
AUD/USD average for the year to date 0.95 0.97 0.99
AUD/USD average for the quarter 0.95 0.99 0.99
AUD/USD closing 0.96 0.97 0.97
BRL/USD average for the year to date 1.77 1.68 1.67
BRL/USD average for the quarter 1.77 1.80 1.67
BRL/USD closing 1.83 1.87 1.63
ARS/USD average for the year to date 4.34 4.13 4.01
ARS/USD average for the quarter 4.34 4.25 4.01
ARS/USD closing 4.38 4.30 4.05
12. Capital commitments
Mar Dec Mar
2012 2011 2011
Reviewed Audited Unaudited
US Dollar million
Orders placed and outstanding on capital
contracts at the prevailing rate of
exchange (1) 370 202 274
(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 other
risks. Distributions from operations may be subject to foreign investment,
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 finance arrangements contain financial covenants
and other similar undertakings. To the extent that external borrowings are
required, the group`s 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 sufficient measures are in place to ensure that these facilities can be
refinanced.
13. Contingencies
AngloGold Ashanti`s material contingent liabilities and assets at 31 March are
detailed below:
Contingencies and guarantees
Mar Mar
2012 2011
Reviewed Unaudited
US Dollar Millions
Contingent liabilities
Groundwater pollution (1) - -
Deep groundwater pollution - South Africa (2) - -
Sales tax on gold deliveries - Brazil (3) 91 95
Other tax disputes - Brazil (4) 57 39
Indirect taxes - Ghana (5) 14 11
Tax disputes - Tanzania (6) - -
ODMWA litigation (7) - -
Contingent assets
Royalty - Boddington Gold Mine (8) - -
Royalty - Tau Lekoa Gold Mine (9) - -
Financial Guarantees
Oro Group (Pty) Limited (10) 13 15
175 160
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 - AngloGold Ashanti has identified groundwater
contamination plumes at certain of its operations, which have occurred primarily
as a result of seepage from mine residue stockpiles. Numerous scientific,
technical and legal studies have been undertaken to assist in determining the
magnitude of the contamination and to find sustainable remediation solutions.
The group 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 improvements 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. Subject to the completion of trials and the
technology being a proven remediation technique, no reliable estimate can be
made for the obligation.
(2) Deep groundwater pollution - The company 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. Due to the interconnected nature of mining operations, any proposed
solution needs to be a combined one supported by all the mines located in these
gold fields. As a result the Department of Mineral Resources and affected mining
companies are now involved in the development of a "Regional Mine Closure
Strategy". In view of the limitation of current information for the accurate
estimation of a liability, no reliable estimate can be made for the obligation.
(3) Sales tax on gold deliveries - In 2006, Mineracao Serra Grande S.A. (MSG),
received two tax assessments from the State of Goias related to payments of
state sales taxes at the rate of 12% on gold deliveries for export from one
Brazilian state to another during the period from February 2004 to the end of
May 2006. AngloGold Ashanti Corrego do Sitio Mineracao S.A. manages the
operation and its attributable share of the first assessment is approximately
$56m (2011: $59m). The company`s attributable share of the second assessment is
approximately $35m (2011: $36m). 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. In July 2011, the administrative council`s second
chamber ruled in favour of MSG and fully cancelled the tax liability related to
the second period. The State of Goias has appealed to the full board of the
State of Goias tax administrative council. In November 2011, the administrative
council`s second chamber approved the suspension of proceedings and the
remittance of the matter to the Department of Supervision of Foreign Trade
(COMEX) for review and verification. 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 $10m
(2011: $10m). In addition, in November 2007, the Departamento Nacional de
Producao Mineral (DNPM), a Brazilian federal mining authority, issued a tax
assessment against AngloGold Ashanti Brazil Mineracao (AABM) in the amount of
$38m (2011: $23m) relating to the calculation and payment by AABM of the
financial contribution on mining exploitation (CFEM) in the period from 1991 to
2006. AngloGold Ashanti Limited subsidiaries in Brazil are involved in various
other 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 $9m (2011: $6m).
(5) Indirect taxes - AngloGold Ashanti (Ghana) Limited received a tax assessment
for $14m (2011: $11m) during September 2009 in respect of 2006, 2007 and 2008
tax years, 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) Geita Gold Mine Limited (GGML) and Samax Resources Limited (Tanzania branch)
received a letter from the Tanzania Revenue Authority (TRA) dated 15 March 2012.
The TRA advised that it intends to issue assessments/demands in relation to a
number of tax matters. The company intends to defend the assessments and
demands. As no assessments/demands have been received to date, no value can be
attributed to the contingent liability.
(7) Occupational Diseases in Mines and Works Act, 1973 (ODMWA) litigation - The
case of Mr Thembekile Mankayi was heard in the High Court of South Africa in
June 2008, and an appeal heard in the Supreme Court of Appeal in 2010. In both
instances judgement was awarded in favour of AngloGold Ashanti Limited on the
basis that an employer is indemnified against such a claim for damages by virtue
of the provisions of section 35 of the Compensation for Occupational Injuries
and Diseases Act, 1993 (COIDA). A further appeal that was lodged by Mr Mankayi
was heard in the Constitutional Court in 2010. Judgement in the Constitutional
Court was handed down on 3 March 2011. The Constitutional Court held that
section 35 of COIDA does not indemnify the employer against such claims.
Mr Mankayi passed away subsequent to the hearing in the Supreme Court of Appeal.
Following the Constitutional Court judgement, Mr Mankayi`s executor may proceed
with his case in the High Court. This will comprise, amongst others, providing
evidence showing that Mr Mankayi contracted silicosis as a result of negligent
conduct on the part of AngloGold Ashanti Limited.
The company will defend the case and any subsequent claims on their merits.
Should other individuals or groups lodge similar claims, these too will be
defended by the company and adjudicated by the Courts on their merits. In view
of the limitation of current information for the accurate estimation of a
possible liability, no reliable estimate can be made of this possible
obligation.
(8) Royalty - 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
commenced on 1 July 2010 and is capped at a total amount of $100m, of which $45m
(2011: $10m) have been received to date. Royalties of $11m (2011: $6m) were
received during the quarter.
(9) Royalty - As a result of the sale of the interest in the Tau Lekoa Gold Mine
during 2010, the group is entitled to receive a royalty on the production of a
total of 1.5Moz by the Tau Lekoa Gold Mine and in the event that the average
monthly rand price of gold exceeds R180,000/kg (subject to an inflation
adjustment). Where the average monthly rand price of gold does not exceed
R180,000/kg (subject to an inflation adjustment), the ounces produced in that
quarter do not count towards the total 1.5Moz upon which the royalty is payable.
The royalty will be determined at 3% of the net revenue (being gross revenue
less State royalties) generated by the Tau Lekoa assets. Royalties on 219,005oz
produced have been received to date. Royalties of $1m (2011: $1m) were received
during the quarter.
(10) Provision of surety - The company has provided sureties in favour of a
lender on a gold loan facility with its affiliate Oro Group (Pty) Limited and
one of its subsidiaries to a maximum value of $13m (2011: $15m). The suretyship
agreements have a termination notice period of 90 days.
14. Borrowings
AngloGold Ashanti`s borrowings are interest bearing.
15. Change in presentation currency
Effective 1 January 2012, the group changed the presentation currency of its
results from reporting in US Dollars and South African Rands to reporting only
in US Dollars. Management has concluded that the change in presentation currency
will result in more reliable and relevant information than the current position
of reporting in two currencies. Management considered the following factors: the
majority of AngloGold Ashanti`s operating mines use US Dollars as their
functional currency; the majority of AngloGold Ashanti`s annual production and
reserves are derived from non-South African Rand denominated countries; the
majority of AngloGold Ashanti shareholders are not domiciled in a South African
Rand denominated country; management prepare investor presentations and analysis
in US Dollars only; and the management accounts, except for South Africa which
is reported in dual currency, are reported to the Chief Operating Decision Maker
in US Dollars. The change in presentation currency has no effect on comparative
information.
16. Announcements
On 8 February 2012, the transaction to dispose of the AngloGold Ashanti-
Polymetal Strategic Alliance consisting of AngloGold Ashanti-Polymetal Strategic
Alliance Management Company Holdings Limited, Amikan Holdings Limited, AS APK
Holdings Limited, Imitzoloto Holdings Limited and Yeniseiskaya Holdings Limited
to Polyholding Limited was completed. The consideration received for the
disposal was $20m.
On 2 March 2012, AngloGold Ashanti agreed to acquire First Uranium (Proprietary)
Limited (South Africa) ("FUSA"), a wholly-owned subsidiary of Toronto-based
First Uranium Corporation ("FIUC") and the owner of Mine Waste Solutions
("MWS"), a recently commissioned tailings retreatment operation located in South
Africa`s Vaal River region and in the immediate proximity of AngloGold Ashanti`s
own tailings facilities, for a cash consideration of $335 million. The
transaction will be funded from cash reserves and debt facilities, which is
subject to various conditions and approvals.
On 15 March 2012, AngloGold Ashanti acknowledged that Moody`s Investors Service
upgraded the issuer rating of AngloGold Ashanti Limited to Baa2 from Baa3, in
recognition of significant improvements in the company`s balance sheet position
and operational performance.
17. Dividend
Final Dividend No. 112 of 200 South African cents or 15.183066 UK pence or
45.100 cedis per ordinary share was paid to registered shareholders on 16 March
2012, while a dividend of 24.86 Australian cents per CHESS Depositary Interest
(CDI) was paid on the same day. On 19 March 2012, holders of Ghanaian Depositary
Shares (GhDS) were paid 0.451 cedis per GhDS. Each CDI represents one-fifth of
an ordinary share, and 100 GhDSs represents one ordinary share. A dividend of
26.4006 US cents per American Depositary Share (ADS) was paid to holders of
American Depositary Receipts (ADRs) on 26 March 2012. Each ADS represents one
ordinary share.
Final Dividend No. E12 of 100 South African cents was paid to holders of E
ordinary shares on 16 March 2012, being those employees participating in the
Bokamoso ESOP and Izingwe Holdings (Proprietary) Limited.
The directors declared Q1 Dividend No. 113 of 100 South African cents per
ordinary share for the quarter ended 31 March 2012. In compliance with the
requirements of Strate, given the company`s primary listing on the JSE, 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.
2012
Currency conversion date for UK pounds, Australian dollars
and Ghanaian cedis Thursday, 24 May
Last date to trade ordinary shares cum dividend Friday, 25 May
Last date to register transfers of certificated securities
cum dividend Friday, 25 May
Ordinary shares trade ex-dividend Monday, 28 May
Record date Friday, 1 June
Payment date Friday, 8 June
On the payment date, dividends due to holders of certificated securities on the
South African and United Kingdom share registers will be electronically
transferred to shareholders` bank accounts. Given the increasing incidences of
fraud with respect to cheque payments, the company has ceased the payment of
dividends by way of cheque. Shareholders are requested to notify the relevant
share registrars with banking details to enable future dividends to be paid via
electronic funds transfer. Refer to the back cover for share registrar details.
Dividends in respect of dematerialised shareholdings will be credited to
shareholders` accounts with the relevant CSDP or broker.
To comply with further requirements of Strate, between Monday, 28 May 2012 and
Friday, 1 June 2012, 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.
2012
Ex dividend on New York Stock Exchange Wednesday, 30 May
Record date Friday, 1 June
Approximate date for currency conversion Friday, 8 June
Approximate payment date of dividend Monday, 18 June
Assuming an exchange rate of R7.8009/$, the dividend payable per ADS is
equivalent to 13 US cents. 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.
2012
Last date to trade and to register GhDSs cum dividend Friday, 25 May
GhDSs trade ex-dividend Monday, 28 May
Record date Friday, 1 June
Approximate payment date of dividend Monday, 11 June
Assuming an exchange rate of R1/Cents (USD)0.23897, the dividend payable per
share is equivalent to 0.2390 cedis. 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 8%.
In addition, directors declared Interim Dividend No. E13 of 50 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, 8 June 2012.
Withholding tax: Shareholders are reminded that a 15% withholding tax on
dividends and other distributions to shareholders became effective on 1 April
2012. This withholding tax, which was announced by the South African Government
on 21 February 2007, replaces the Secondary Tax on Companies. The company`s
share registrars have communicated the process to all shareholders. If you have
not had any correspondence, please contact the company secretary on
companysecretary@anglogoldashanti.com.
By order of the Board
T T MBOWENI M CUTIFANI
Chairman Chief Executive Officer
8 May 2012
Non-GAAP disclosure
From time to time AngloGold Ashanti Limited may publicly disclose certain "Non-
GAAP" financial measures in the course of its financial presentations, earnings
releases, earnings conference calls and otherwise.
The group uses certain Non-GAAP performance measures and ratios in managing the
business and may provide users of this financial information with additional
meaningful comparisons between current results and results in prior operating
periods. Non-GAAP financial measures should be viewed in addition to, and not as
an alternative to, the reported operating results or any other measure of
performance prepared in accordance with IFRS. In addition, the presentation of
these measures may not be comparable to similarly titled measures that other
companies use.
A Adjusted headline earnings
Quarter ended Year ended
Mar Dec Mar Dec
2012 2011 2011 2011
Unaudited Unaudited Unaudited Unaudited
US Dollar million
Headline earnings (note 8) 551 289 241 1,484
(Gain) loss on unrealised
non-hedge derivatives and
other commodity contracts - - (2) 1
Fair value adjustment on
option component of
convertible bonds (43) 15 (15) (84)
Fair value adjustment on
mandatory convertible bonds (79) (9) (22) (104)
Adjusted headline earnings 429 295 203 1,297
Adjusted headline earnings
per ordinary share (cents)(1) 111 76 53 336
(1) Calculated on the basic weighted average number of ordinary shares.
B Price received
Quarter ended Year ended
Mar Dec Mar Dec
2012 2011 2011 2011
Unaudited Unaudited Unaudited Unaudited
US Dollar million / Imperial
Gold income (note 2) 1,706 1,779 1,422 6,570
Adjusted for
non-controlling interests (52) (47) (39) (177)
1,654 1,732 1,383 6,393
Associates and equity
accounted joint ventures`
share of gold
income including realised
non-hedge derivatives 88 110 82 392
Attributable gold income
including realised
non-hedge derivatives 1,742 1,842 1,465 6,785
Attributable gold
sold - oz(000) 1,029 1,094 1,054 4,305
Revenue price per unit -
$/oz 1,692 1,684 1,391 1,576
Quarter ended Year ended
Mar Dec Mar Dec
2012 2011 2011 2011
Unaudited Unaudited Unaudited Unaudited
US Dollar million / Imperial
C Total costs
Total cash costs (note 3) 759 796 726 3,028
Adjusted for
non-controlling interests
and non-gold producing
companies (31) (13) (43) (99)
Associates` and equity
accounted joint ventures`
share of total cash costs 52 64 50 221
Total cash costs adjusted
for non-controlling
interests and non-gold
producing companies 780 847 733 3,150
Retrenchment costs (note 3) 3 4 4 15
Rehabilitation and other
non-cash costs (note 3) 9 157 10 229
Amortisation of tangible
assets (note 3) 190 203 185 768
Amortisation of intangible
assets (note 3) 1 1 1 2
Adjusted for
non-controlling interests
and non-gold producing
companies (5) (34) (8) (64)
Associates and equity
accounted joint ventures`
share of production costs 2 6 2 12
Total production costs
adjusted for
non-controlling
interests and non-gold
producing companies 980 1,184 927 4,112
Gold produced - oz (000) 981 1,112 1,039 4,329
Total cash cost per unit -
$/oz 794 762 706 728
Total production cost per
unit - $/oz 999 1,065 893 950
Rounding of figures may result in computational discrepancies.
Quarter ended Year ended
Mar Dec Mar Dec
2012 2011 2011 2011
Unaudited Unaudited Unaudited Unaudited
US Dollar million
D EBITDA
Operating profit 584 672 363 2,202
Amortisation of tangible
assets (note 3) 190 203 185 768
Amortisation of intangible
assets (note 3) 1 1 1 2
Net (reversal) impairment
of tangible assets (note 5) - (134) 1 (120)
Impairment reversal of
intangible assets (note 5) (10) - - -
(Gain) loss on unrealised
non-hedge derivatives and
other commodity contracts - - (2) 1
Share of associates` EBITDA 32 33 26 137
Impairment of investments
(note 5) 1 3 - 21
Net loss on disposal and
derecognition of assets
(note 5) 2 5 2 8
Profit on disposal of ISS
International Limited
(note 5) - - (2) (2)
Insurance claim recovery
of capital items (note 5) - (3) - (3)
800 780 574 3,014
E Interest cover
EBITDA (note D) 800 780 574 3,014
Finance costs (note 6) 34 34 36 141
Capitalised finance costs 2 2 - 3
36 36 36 144
Interest cover - times 22 22 16 21
As at As at As at
Mar Dec Mar
2012 2011 2011
Unaudited Unaudited Unaudited
US Dollar million
F Net asset value - cents per share
Total equity 5,746 5,166 4,283
Mandatory convertible bonds 678 760 849
6,424 5,926 5,132
Number of ordinary shares in issue -
million (note 9) 385 385 384
Net asset value - cents per share 1,669 1,540 1,336
Total equity 5,746 5,166 4,283
Mandatory convertible bonds 678 760 849
Intangible assets (228) (210) (196)
6,196 5,716 4,936
Number of ordinary shares in issue -
million (note 9) 385 385 384
Net tangible asset value - cents per
share 1,610 1,485 1,285
G Net debt
Borrowings - long-term portion 1,705 1,698 1,664
Borrowings - short-term portion 51 30 44
Total borrowings (1) 1,756 1,728 1,708
Corporate office lease (35) (33) (38)
Unamortised portion of the convertible
and rated bonds 56 85 88
Cash restricted for use (78) (58) (37)
Cash and cash equivalents (1,216) (1,112) (619)
Net debt excluding mandatory convertible
bonds 483 610 1,102
(1) Borrowings exclude the mandatory convertible bonds (note F).
Rounding of figures may result in computational discrepancies.
IMPERIAL
OPERATING
RESULTS Continental
South Africa Africa Australasia
QUARTER ENDED MARCH 2012
UNDERGROUND OPERATION
Area mined
- 000 ft2 1,760 - -
Mined - 000 tons 1,218 458 267
Milled /
Treated - 000 tons 1,096 489 278
Yield - oz/t 0.243 0.123 0.100
- g/t 8.33 4.23 3.42
Gold produced - oz (000) 266 60 28
SURFACE AND
DUMP
RECLAMATION
Milled /
Treated - 000 tons 3,142 253 -
Yield - oz/t 0.013 0.004 -
- g/t 0.44 0.14 -
Gold produced - oz (000) 40 1 -
OPEN-PIT
OPERATION
Volume mined - 000 bcy - 19,131 959
Mined - 000 tons - 38,186 2,293
Treated - 000 tons - 6,461 715
Stripping
ratio - ratio - 5.39 2.98
Yield - oz/t - 0.049 0.056
- g/t - 1.67 1.93
Gold produced - oz (000) - 314 40
HEAP LEACH
OPERATION
Mined - 000 tons - 2,397 -
Placed - 000 tons - 271 -
Stripping
ratio - ratio - 16.73 -
Yield - oz/t - 0.023 -
- g/t - 0.79 -
Gold placed - oz (000) - 6 -
Gold produced - oz (000) - 7 -
PRODUCTIVITY
PER EMPLOYEE
Actual - oz 4.38 11.03 43.01
TOTAL
Subsidiaries`
gold produced - oz (000) 306 328 68
Joint
ventures`
gold produced - oz (000) - 54 -
Attributable
gold produced - oz (000) 306 382 68
Minority gold
produced - oz (000) - 10 -
Subsidiaries`
gold sold - oz (000) 306 367 68
Joint
ventures`
gold sold - oz (000) - 51 -
Attributable
gold sold - oz (000) 306 418 68
Minority gold
sold - oz (000) - 11 -
Spot price - $/oz 1,691 1,691 1,691
Price received- $/oz sold 1,712 1,686 1,691
Total cash
costs - $/oz produced 849 817 1,290
Total
production
costs - $/oz produced 1,113 979 1,412
IMPERIAL OPERATING RESULTS
Americas Total group
QUARTER ENDED MARCH 2012
UNDERGROUND OPERATION
Area mined
- 000 ft2 - 1,760
Mined - 000 tons 583 2,526
Milled / Treated - 000 tons 655 2,519
Yield - oz/t 0.165 0.184
- g/t 5.67 6.30
Gold produced - oz (000) 108 463
SURFACE AND DUMP RECLAMATION
Milled / Treated - 000 tons - 3,395
Yield - oz/t - 0.012
- g/t - 0.41
Gold produced - oz (000) - 41
OPEN-PIT OPERATION
Volume mined - 000 bcy - 20,090
Mined - 000 tons 6,107 46,586
Treated - 000 tons 230 7,406
Stripping ratio - ratio 22.75 5.84
Yield - oz/t 0.187 0.054
- g/t 6.42 1.84
Gold produced - oz (000) 43 397
HEAP LEACH OPERATION
Mined - 000 tons 17,741 20,139
Placed - 000 tons 5,722 5,993
Stripping ratio - ratio 2.28 2.63
Yield - oz/t 0.011 0.012
- g/t 0.39 0.41
Gold placed - oz (000) 65 71
Gold produced - oz (000) 74 81
PRODUCTIVITY PER EMPLOYEE
Actual - oz 18.81 8.27
TOTAL
Subsidiaries` gold produced - oz (000) 225 927
Joint ventures` gold produced - oz (000) - 54
Attributable gold produced - oz (000) 225 981
Minority gold produced - oz (000) 20 30
Subsidiaries` gold sold - oz (000) 237 978
Joint ventures` gold sold - oz (000) - 51
Attributable gold sold - oz (000) 237 1,029
Minority gold sold - oz (000) 22 33
Spot price - $/oz 1,691 1,691
Price received - $/oz sold 1,678 1,692
Total cash costs - $/oz produced 534 794
Total production costs - $/oz produced 748 999
Rounding of figures may result in computational discrepancies.
FINANCIAL RESULTS
South Africa Continental Australasia Americas
QUARTER ENDED MARCH Africa
2012 $`m
Gold income 524 723 115 432
Cash costs (278) (323) (88) (189)
By-products revenue 18 2 - 41
Total cash costs (260) (321) (88) (148)
Retrenchment costs (2) - - (1)
Rehabilitation and
other non-cash costs (2) (7) - (1)
Amortisation of assets (77) (56) (8) (50)
Total production costs (340) (384) (96) (199)
Inventory change (2) (22) (2) 1
Cost of sales (342) (406) (98) (198)
Gross profit (loss) 182 317 17 234
Corporate and other costs (3) (3) - (8)
Exploration (1) (23) (18) (25)
Intercompany transactions - (17) (3) -
Special items - 6 14 -
Operating profit (loss) 179 280 10 200
Net finance (costs)
income, unwinding of
obligations and fair
value adjustments (2) (1) 1 (1)
Exchange gain (loss) - 2 - (2)
Share of equity accounted
investments profit - - - (4)
Profit (loss) before
taxation 177 281 11 193
Taxation 90 (140) (5) (70)
Profit (loss) for
the period 267 141 7 123
Equity shareholders 267 136 7 113
Non-controlling interests - 5 - 10
Operating profit (loss) 179 280 10 200
Intercompany transactions - 17 3 -
Special items 1 (10) - -
Share of associates`
EBIT - - - (4)
EBIT 180 288 13 197
Amortisation of assets 77 56 8 50
Share of associates`
amortisation - - - -
EBITDA 257 344 22 246
Profit (loss)
attributable to
equity shareholders 267 136 7 113
Special items 1 (10) - -
Share of associates`
special items - - - -
Taxation on items above - - - -
Headline earnings (loss) 268 126 7 113
Fair value adjustment on
option component
of convertible bonds - - - -
Fair value adjustment on
mandatory convertible bonds - - - -
Adjusted headline
earnings (loss) 268 126 7 113
Ore reserve
development capital 58 12 5 15
Stay-in-business capital 19 63 4 13
Project capital 28 47 33 53
Total capital expenditure 106 122 42 81
Corporate Sub-total Less equity Total group
accounted
QUARTER ENDED MARCH and other investments
2012 $`m
Gold income - 1,793 (88) 1,706
Cash costs 6 (871) 52 (819)
By-products revenue - 61 - 61
Total cash costs 6 (811) 52 (759)
Retrenchment costs - (3) - (3)
Rehabilitation and
other non-cash costs - (10) - (9)
Amortisation of assets (2) (193) 2 (191)
Total production costs 3 (1,016) 54 (962)
Inventory change - (24) (3) (27)
Cost of sales 3 (1,040) 51 (989)
Gross profit (loss) 3 753 (36) 717
Corporate and other costs (61) (76) - (75)
Exploration (10) (76) 1 (75)
Intercompany
transactions 21 - - -
Special items (3) 17 - 17
Operating profit (loss) (50) 618 (35) 584
Net finance (costs)
income, unwinding of
obligations and fair
value adjustments 87 85 - 85
Exchange gain (loss) (2) (2) 1 (2)
Share of equity
accounted investments
profit 4 - 22 22
Profit (loss) before taxation 39 701 (12) 689
Taxation 2 (123) 12 (111)
Profit (loss) for the period 41 578 - 578
Equity shareholders 40 563 - 563
Non-controlling interests - 15 - 15
Operating profit (loss) (50) 618 (35) 584
Intercompany transactions (21) - - -
Special items 1 (7) - (7)
Share of associates`
EBIT (1) (4) 35 30
EBIT (71) 607 - 607
Amortisation of assets 2 193 (2) 191
Share of associates`
amortisation - - 2 2
EBITDA (69) 800 - 800
Profit (loss)
attributable to equity
shareholders 40 563 - 563
Special items 1 (7) - (7)
Share of associates`
special items (5) (5) - (5)
Taxation on items above - - - -
Headline earnings (loss) 37 551 - 551
Fair value adjustment
on option component
of convertible bonds (43) (43) - (43)
Fair value adjustment
on mandatory
convertible bonds (79) (79) - (79)
Adjusted headline
earnings (loss) (85) 429 - 429
Ore reserve
development capital - 90 - 90
Stay-in-business capital 3 102 (2) 100
Project capital - 162 (32) 130
Total capital expenditure 3 354 (35) 319
Rounding of figures may result in computational discrepancies.
IMPERIAL OPERATING RESULTS
South Africa Continental Australasia
QUARTER ENDED
DECEMBER 2011 Africa
UNDERGROUND OPERATION
Area mined - 000 ft2 2,672 - -
Mined - 000 tons 1,714 528 354
Milled /
Treated - 000 tons 1,537 548 393
Yield - oz/t 0.235 0.146 0.129
- g/t 8.05 5.01 4.44
Gold produced - oz (000) 361 80 51
SURFACE AND
DUMP
RECLAMATION
Milled /
Treated - 000 tons 3,028 32 -
Yield - oz/t 0.012 0.031 -
- g/t 0.42 1.06 -
Gold produced - oz (000) 37 1 -
OPEN-PIT
OPERATION
Volume mined - 000 bcy - 18,147 904
Mined - 000 tons - 35,528 1,609
Treated - 000 tons - 6,748 616
Stripping
ratio - ratio - 5.98 4.91
Yield - oz/t - 0.049 0.020
- g/t - 1.68 0.69
Gold produced - oz (000) - 330 12
HEAP LEACH
OPERATION
Mined - 000 tons - 2,348 -
Placed - 000 tons - 335 -
Stripping
ratio - ratio - 10.86 -
Yield - oz/t - 0.030 -
- g/t - 1.04 -
Gold placed - oz (000) - 10 -
Gold produced - oz (000) - 7 -
PRODUCTIVITY
PER EMPLOYEE
Actual - oz 5.71 12.00 42.52
TOTAL
Subsidiaries`
gold produced - oz (000) 398 356 63
Joint
ventures`
gold produced - oz (000) - 63 -
Attributable
gold produced - oz (000) 398 419 63
Minority gold
produced - oz (000) - 11 -
Subsidiaries`
gold sold - oz (000) 398 353 62
Joint
ventures`
gold sold - oz (000) - 66 -
Attributable
gold sold - oz (000) 398 419 62
Minority gold
sold - oz (000) - 11 -
Spot price - $/oz 1,683 1,683 1,683
Price received- $/oz sold 1,689 1,680 1,673
Total cash
costs - $/oz produced 696 799 1,478
Total
production
costs - $/oz produced 884 1,220 1,771
IMPERIAL OPERATING RESULTS
Americas Total group
QUARTER ENDED DECEMBER 2011
UNDERGROUND OPERATION
Area mined - 000 ft2 - 2,672
Mined - 000 tons 567 3,162
Milled / Treated - 000 tons 573 3,051
Yield - oz/t 0.195 0.198
- g/t 6.68 6.78
Gold produced - oz (000) 112 603
SURFACE AND DUMP RECLAMATION
Milled / Treated - 000 tons - 3,060
Yield - oz/t - 0.012
- g/t - 0.42
Gold produced - oz (000) - 38
OPEN-PIT OPERATION
Volume mined - 000 bcy - 19,052
Mined - 000 tons 7,295 44,431
Treated - 000 tons 267 7,631
Stripping ratio - ratio 23.00 6.84
Yield - oz/t 0.167 0.051
- g/t 5.72 1.74
Gold produced - oz (000) 45 387
HEAP LEACH OPERATION
Mined - 000 tons 16,509 18,857
Placed - 000 tons 5,055 5,389
Stripping ratio - ratio 2.51 2.84
Yield - oz/t 0.013 0.014
- g/t 0.44 0.47
Gold placed - oz (000) 65 75
Gold produced - oz (000) 76 84
PRODUCTIVITY PER EMPLOYEE
Actual - oz 20.09 9.46
TOTAL
Subsidiaries` gold produced - oz (000) 234 1,051
Joint ventures` gold produced - oz (000) - 63
Attributable gold produced - oz (000) 234 1,114
Minority gold produced - oz (000) 25 36
Subsidiaries` gold sold - oz (000) 217 1,030
Joint ventures` gold sold - oz (000) - 66
Attributable gold sold - oz (000) 217 1,096
Minority gold sold - oz (000) 21 32
Spot price - $/oz 1,683 1,683
Price received - $/oz sold 1,686 1,684
Total cash costs - $/oz produced 612 762
Total production costs - $/oz produced 895 1,065
Rounding of figures may result in computational discrepancies.
FINANCIAL RESULTS Continental
South Africa Africa Australasia Americas
QUARTER ENDED
DECEMBER 2011 $`m
Gold income 672 723 103 392
Cash costs (299) (349) (94) (185)
By-products revenue 22 3 - 23
Total cash costs (277) (346) (94) (161)
Retrenchment costs (2) (2) - (1)
Rehabilitation and
other non-cash costs 2 (110) (4) (48)
Amortisation of assets (75) (67) (15) (47)
Total production costs (351) (525) (112) (258)
Inv entory change - 9 - 52
Cost of sales (351) (516) (112) (205)
Gross profit (loss) 320 207 (9) 186
Corporate and other costs (3) (2) (1) (10)
Exploration (1) (18) (17) (31)
Intercompany transactions - (17) (3) -
Special items (8) 148 6 1
Operating profit (loss) 308 317 (24) 146
Net finance (costs)
income, unwinding of
obligations and fair
value adjustments (1) 7 3 (2)
Exchange (loss) gain - (7) - (4)
Share of equity accounted
investments profit - (11) - (6)
Profit (loss) before
taxation 307 306 (21) 134
Taxation (122) (107) 5 (29)
Profit (loss) for
the period 185 199 (16) 106
Equity shareholders 185 197 (16) 95
Non-controlling interests - 2 - 10
Operating profit (loss) 308 317 (24) 146
Intercompany transactions - 17 3 -
Special items 9 (138) 1 (2)
Share of associates`
EBIT - - - (6)
EBIT 318 196 (20) 138
Amortisation of assets 75 67 15 47
Share of associates`
amortisation - - - -
EBITDA 393 263 (5) 186
Profit (loss) attributable
to equity shareholders 185 197 (16) 95
Special items 9 (138) 1 (2)
Share of associates`
special items - 11 - -
Taxation on items above (4) 41 - 1
Headline earnings (loss) 191 111 (16) 94
Fair value adjustment on
option component of
convertible bonds - - - -
Fair value loss on
mandatory convertible bonds - - - -
Adjusted headline
earnings (loss) 191 111 (16) 94
Ore reserve
development capital 58 12 4 17
Stay-in-business capital 74 108 9 59
Project capital 49 32 27 71
Total capital expenditure 181 152 40 147
FINANCIAL RESULTS Corporate Less equity
Sub-total accounted Total group
QUARTER ENDED DECEMBER and other investments
2011 $`m
Gold income - 1,889 (110) 1,779
Cash costs 17 (909) 64 (845)
By-products revenue 1 49 - 49
Total cash costs 18 (860) 64 (796)
Retrenchment costs - (4) - (4)
Rehabilitation and
other non-cash costs - (161) 4 (157)
Amortisation of assets (2) (206) 2 (204)
Total production costs 15 (1,231) 70 (1,161)
Inv entory change - 62 2 64
Cost of sales 15 (1,169) 72 (1,097)
Gross profit (loss) 16 720 (38) 682
Corporate and other costs (57) (72) - (73)
Exploration (16) (84) 1 (83)
Intercompany
transactions 21 - - -
Special items (2) 146 - 146
Operating profit (loss) (39) 709 (37) 672
Net finance (costs)
income, unwinding of
obligations and fair
value adjustments (41) (34) 3 (31)
Exchange (loss) gain - (11) 2 (10)
Share of equity
accounted investments profit 15 (2) 18 17
Profit (loss) before
taxation (64) 662 (14) 648
Taxation (7) (259) 14 (246)
Profit (loss) for the
period (71) 402 - 402
Equity shareholders (77) 385 - 385
Non-controlling
interests 5 17 - 17
Operating profit (loss) (39) 709 (37) 672
Intercompany transactions (21) - - -
Special items 2 (128) - (128)
Share of associates`
EBIT (1) (7) 37 30
EBIT (58) 574 - 574
Amortisation of assets 2 206 (2) 204
Share of associates`
amortisation - - 2 2
EBITDA (56) 780 - 780
Profit (loss)
attributable to equity
shareholders (77) 385 - 385
Special items 2 (128) - (128)
Share of associates`
special items (17) (6) - (6)
Taxation on items above - 38 - 38
Headline earnings
(loss) (91) 289 - 289
Fair value adjustment
on option component of
convertible bonds 15 15 - 15
Fair value loss on
mandatory convertible
bonds (9) (9) - (9)
Adjusted headline
earnings (loss) (85) 295 - 295
Ore reserve
development capital - 92 - 92
Stay-in-business capital 4 254 (7) 247
Project capital - 179 (24) 155
Total capital expenditure 5 525 (31) 494
Rounding of figures may result in computational discrepancies.
IMPERIAL OPERATING
RESULTS Continental
South Africa Africa Australasia
QUARTER ENDED
MARCH 2011
UNDERGROUND OPERATION
Area mined - 000 ft2 2,698 - -
Mined - 000 tons 1,718 491 226
Milled /
Treated - 000 tons 1,533 544 265
Yield - oz/t 0.230 0.127 0.154
- g/t 7.89 4.37 5.29
Gold produced - oz (000) 353 69 41
SURFACE AND
DUMP RECLAMATION
Milled /
Treated - 000 tons 2,960 - -
Yield - oz/t 0.016 - -
- g/t 0.56 - -
Gold produced - oz (000) 48 1 -
OPEN-PIT
OPERATION
Volume mined - 000 bcy - 16,452 1,446
Mined - 000 tons - 32,702 3,390
Treated - 000 tons - 6,180 646
Stripping
ratio - ratio - 3.52 6.13
Yield - oz/t - 0.046 0.048
- g/t - 1.58 1.66
Gold produced - oz (000) - 285 31
HEAP LEACH
OPERATION
Mined - 000 tons - 1,640 -
Placed - 000 tons - 304 -
Stripping
ratio - ratio - 6.14 -
Yield - oz/t - 0.029 -
- g/t - 0.99 -
Gold placed - oz (000) - 9 -
Gold produced - oz (000) - 7 -
PRODUCTIVITY
PER EMPLOYEE
Actual - oz 5.80 10.84 40.58
TOTAL
Subsidiaries`
gold produced - oz (000) 401 303 72
Joint
ventures`
gold produced - oz (000) - 60 -
Attributable
gold produced - oz (000) 401 363 72
Minority gold
produced - oz (000) - 11 -
Subsidiaries`
gold sold - oz (000) 401 322 70
Joint
ventures`
gold sold - oz (000) - 59 -
Attributable
gold sold - oz (000) 401 381 70
Minority gold
sold - oz (000) - 12 -
Spot price - $/oz 1,387 1,387 1,387
Price received- $/oz sold 1,397 1,388 1,387
Total cash
costs - $/oz produced 637 819 1,153
Total
production
costs - $/oz produced 871 965 1,304
IMPERIAL OPERATING RESULTS
Americas Total group
QUARTER ENDED MARCH 2011
UNDERGROUND OPERATION
Area mined - 000 ft2 - 2,698
Mined - 000 tons 514 2,949
Milled / Treated - 000 tons 539 2,880
Yield - oz/t 0.193 0.197
- g/t 6.60 6.75
Gold produced - oz (000) 104 567
SURFACE AND DUMP RECLAMATION
Milled / Treated - 000 tons - 2,960
Yield - oz/t - 0.017
- g/t - 0.57
Gold produced - oz (000) - 49
OPEN-PIT OPERATION
Volume mined - 000 bcy - 17,898
Mined - 000 tons 7,233 43,324
Treated - 000 tons 244 7,070
Stripping ratio - ratio 24.42 4.42
Yield - oz/t 0.157 0.050
- g/t 5.37 1.72
Gold produced - oz (000) 38 355
HEAP LEACH OPERATION
Mined - 000 tons 17,280 18,921
Placed - 000 tons 5,748 6,052
Stripping ratio - ratio 2.08 2.24
Yield - oz/t 0.011 0.012
- g/t 0.38 0.41
Gold placed - oz (000) 64 73
Gold produced - oz (000) 61 68
PRODUCTIVITY PER EMPLOYEE
Actual - oz 20.06 9.07
TOTAL
Subsidiaries` gold produced - oz (000) 203 979
Joint ventures` gold produced - oz (000) - 60
Attributable gold produced - oz (000) 203 1,039
Minority gold produced - oz (000) 20 32
Subsidiaries` gold sold - oz (000) 203 995
Joint ventures` gold sold - oz (000) - 59
Attributable gold sold - oz (000) 203 1,054
Minority gold sold - oz (000) 19 31
Spot price - $/oz 1,387 1,387
Price received - $/oz sold 1,386 1,391
Total cash costs - $/oz produced 480 706
Total production costs - $/oz produced 651 893
Rounding of figures may result in computational discrepancies.
FINANCIAL RESULTS Continental
South Africa Africa Australasia Americas
QUARTER ENDED MARCH
2011 $`m
Gold income received 560 545 97 303
Cash costs (282) (307) (83) (150)
By-products revenue 27 2 - 22
Total cash costs (255) (305) (83) (128)
Retrenchment costs (3) - - (1)
Rehabilitation and
other non-cash costs (2) (8) - (1)
Amortisation of assets (89) (46) (11) (39)
Total production costs (349) (359) (94) (169)
Inventory change - (24) 3 21
Cost of sales (349) (383) (91) (147)
Unrealised non-hedge
derivatives and other
commodity contracts - - - 2
Gross profit (loss) 210 163 5 158
Corporate and other costs (2) (3) (2) (14)
Exploration - (20) (11) (19)
Intercompany transactions - (12) - -
Special items (1) (6) 7 -
Operating profit (loss) 207 121 - 124
Net finance (costs)
income, unwinding of
obligations and fair
value adjustments (1) (2) 1 -
Exchange gain (loss) - (3) - 1
Share of equity accounted
investments profit - - - (4)
Profit (loss) before
taxation 206 116 1 121
Taxation (55) (42) (2) (29)
Profit (loss) for the period 151 74 (1) 92
Equity shareholders 151 69 (1) 87
Non-controlling interests - 5 - 5
Operating profit (loss) 207 121 - 124
Unrealised non-hedge
derivatives and other
commodity contracts - - - (2)
Intercompany transactions
Intercompany transactions - 12 - -
Special items 1 1 - -
Share of associates`
EBIT - - - (4)
EBIT 209 134 - 119
Amortisation of assets 89 46 11 39
Share of associates`
amortisation - - - -
EBITDA 298 180 11 158
Profit (loss) attributable
to equity shareholders 151 69 (1) 87
Special items 1 1 - -
Share of associates`
special items - - - -
Taxation on items above (1) - - -
Headline earnings (loss) 152 70 (1) 87
Unrealised non-hedge
derivatives and other
commodity contracts - - - (2)
Fair value adjustment on
option component
of convertible bonds - - - -
Fair value loss on
mandatory convertible bonds - - - -
Adjusted headline
earnings (loss) 152 70 (1) 85
Ore reserve
development capital 65 12 4 15
Stay-in-business capital 14 32 2 15
Project capital 17 18 5 49
Total capital expenditure 95 62 11 79
FINANCIAL RESULTS Corporate Less equity
Sub-total accounted Total group
QUARTER ENDED MARCH
2011 $`m and other investments
Gold income received - 1,505 (82) 1,422
Cash costs (5) (827) 50 (777)
By-products revenue - 51 - 51
Total cash costs (5) (776) 50 (726)
Retrenchment costs - (4) - (4)
Rehabilitation and
other non-cash costs - (10) - (10)
Amortisation of assets (2) (188) 2 (186)
Total production costs (7) (977) 52 (925)
Inventory change - - (1) (1)
Cost of sales (7) (977) 52 (926)
Unrealised non-hedge
derivatives and other
commodity contracts - 2 - 2
Gross profit (loss) (7) 529 (31) 498
Corporate and other costs (58) (79) - (79)
Exploration (8) (58) 1 (57)
Intercompany
transactions 12 - - -
Special items 1 1 - 1
Operating profit (loss) (59) 393 (30) 363
Net finance (costs)
income, unwinding of
obligations and fair
value adjustments (2) (4) - (4)
Exchange gain (loss) - (2) 2 -
Share of equity
accounted investments
profit (2) (6) 18 12
Profit (loss) before
taxation (63) 381 (10) 371
Taxation (6) (133) 10 (123)
Profit (loss) for the
period (68) 248 - 248
Equity shareholders (64) 241 - 241
Non-controlling
interests (4) 6 - 7
Operating profit (loss) (59) 393 (30) 363
Unrealised non-hedge
derivatives and other
commodity contracts - (2) - (2)
Intercompany transactions
Intercompany
transactions (12) - - -
Special items (2) 1 - 1
Share of associates`
EBIT (2) (6) 30 24
EBIT (75) 386 - 386
Amortisation of assets 2 188 (2) 186
Share of associates`
amortisation - - 2 2
EBITDA (73) 574 - 574
Profit (loss)
attributable to equity
shareholders (64) 241 - 241
Special items (2) 1 - 1
Share of associates`
special items - - - -
Taxation on items above - (1) - (1)
Headline earnings (loss) (66) 241 - 241
Unrealised non-hedge
derivatives and other
commodity contracts - (2) - (2)
Fair value adjustment
on option component
of convertible bonds (15) (15) - (15)
Fair value loss on
mandatory convertible
bonds (22) (22) - (22)
Adjusted headline
earnings (loss) (103) 203 - 203
Ore reserve
development capital - 95 - 95
Stay-in-business capital 2 65 (1) 64
Project capital - 89 (14) 75
Total capital expenditure 2 249 (15) 234
Rounding of figures may result in computational discrepancies.
IMPERIAL
OPERATING
RESULTS Continental
South Africa Africa Australasia
YEAR ENDED
DECEMBER 2011
UNDERGROUND
OPERATION
Area mined - 000 ft2 10,958 - -
Mined - 000 tons 6,957 2,031 1,154
Milled /
Treated - 000 tons 6,295 2,179 1,195
Yield - oz/t 0.232 0.141 0.111
- g/t 7.95 4.82 3.80
Gold produced - oz (000) 1,459 306 132
SURFACE AND
DUMP
RECLAMATION
Milled /
Treated - 000 tons 11,802 32 -
Yield - oz/t 0.014 0.193 -
- g/t 0.48 6.62 -
Gold produced - oz (000) 164 6 -
OPEN-PIT
OPERATION
Volume mined - 000 bcy - 70,026 2,747
Mined - 000 tons - 139,690 5,633
Treated - 000 tons - 25,483 2,722
Stripping
ratio - ratio - 4.76 6.04
Yield - oz/t - 0.048 0.042
- g/t - 1.65 1.43
Gold produced - oz (000) - 1,228 114
HEAP LEACH
OPERATION
Mined - 000 tons - 7,492 -
Placed - 000 tons - 1,244 -
Stripping
ratio - ratio - 7.84 -
Yield - oz/t - 0.030 -
- g/t - 1.04 -
Gold placed - oz (000) - 38 -
Gold produced - oz (000) - 29 -
PRODUCTIVITY
PER EMPLOYEE
Actual - oz 5.85 11.41 38.93
TOTAL
Subsidiaries`
gold produced - oz (000) 1,624 1,321 246
Joint
ventures`
gold produced - oz (000) - 249 -
Attributable
gold produced - oz (000) 1,624 1,570 246
Minority gold
produced - oz (000) - 44 -
Subsidiaries`
gold sold - oz (000) 1,623 1,309 248
Joint
ventures`
gold sold - oz (000) - 249 -
Attributable
gold sold - oz (000) 1,623 1,558 248
Minority gold
sold - oz (000) - 46 -
Spot price - $/oz 1,572 1,572 1,572
Price received- $/oz sold 1,578 1,578 1,551
Total cash
costs - $/oz produced 694 765 1,431
Total
production
costs - $/oz produced 910 987 1,622
IMPERIAL OPERATING RESULTS
Americas Total group
YEAR ENDED DECEMBER 2011
UNDERGROUND OPERATION
Area mined - 000 ft2 - 10,958
Mined - 000 tons 2,208 12,350
Milled / Treated - 000 tons 2,278 11,947
Yield - oz/t 0.191 0.195
- g/t 6.54 6.69
Gold produced - oz (000) 436 2,334
SURFACE AND DUMP RECLAMATION
Milled / Treated - 000 tons - 11,834
Yield - oz/t - 0.014
- g/t - 0.49
Gold produced - oz (000) - 171
OPEN-PIT OPERATION
Volume mined - 000 bcy - 72,773
Mined - 000 tons 29,597 174,921
Treated - 000 tons 1,025 29,231
Stripping ratio - ratio 23.34 5.66
Yield - oz/t 0.167 0.052
- g/t 5.72 1.77
Gold produced - oz (000) 171 1,513
HEAP LEACH OPERATION
Mined - 000 tons 70,868 78,360
Placed - 000 tons 22,704 23,948
Stripping ratio - ratio 2.25 2.46
Yield - oz/t 0.012 0.013
- g/t 0.41 0.44
Gold placed - oz (000) 270 308
Gold produced - oz (000) 284 313
PRODUCTIVITY PER EMPLOYEE
Actual - oz 20.70 9.32
TOTAL
Subsidiaries` gold produced - oz (000) 891 4,082
Joint ventures` gold produced - oz (000) - 249
Attributable gold produced - oz (000) 891 4,331
Minority gold produced - oz (000) 83 127
Subsidiaries` gold sold - oz (000) 878 4,058
Joint ventures` gold sold - oz (000) - 249
Attributable gold sold - oz (000) 878 4,307
Minority gold sold - oz (000) 79 125
Spot price - $/oz 1,572 1,572
Price received - $/oz sold 1,576 1,576
Total cash costs - $/oz produced 528 728
Total production costs - $/oz produced 765 950
Rounding of figures may result in computational discrepancies.
FINANCIAL RESULTS - YEAR
ENDED DECEMBER 2011 $`m
South Africa Continental Australasia Americas
Africa
Gold income received 2,561 2,530 385 1,487
Cash costs (1,232) (1,247) (353) (678)
By-products revenue 105 8 1 109
Total cash costs (1,127) (1,239) (352) (569)
Retrenchment costs (9) (3) - (3)
Rehabilitation and
other non-cash costs (4) (131) (5) (94)
Amortisation of assets (338) (219) (42) (169)
Total production costs (1,477) (1,592) (399) (835)
Inv entory change - - 1 94
Cost of sales (1,477) (1,592) (399) (741)
Unrealised non-hedge
derivatives and other
commodity contracts - - - (2)
Gross profit (loss) 1,083 938 (13) 744
Corporate and other costs (11) (9) (3) (43)
Exploration (2) (69) (55) (112)
Intercompany transactions - (51) (4) (2)
Special items (20) 709 41 4
Operating profit (loss) 1,051 1,518 (35) 590
Net finance (costs)
income, unwinding of
obligations and fair
value adjustments (5) 6 5 (5)
Exchange gain (loss) - (15) - 8
Share of equity
accounted investments
profit (loss) - (11) - (20)
Profit (loss) before
taxation 1,046 1,498 (31) 573
Taxation (352) (321) 6 (97)
Profit (loss) for the period 694 1,177 (25) 476
Equity shareholders 694 1,161 (25) 454
Non-controlling interests - 15 - 22
Operating profit (loss) 1,051 1,518 (35) 590
Unrealised non-hedge
derivatives and other
commodity contracts - - - 2
commodity contracts
Intercompany transactions - 51 4 2
Special items 23 (677) (3) (3)
Share of associates`
EBIT - - - (20)
EBIT 1,074 892 (34) 570
Amortisation of assets 338 219 42 169
Share of associates`
amortisation - - - -
EBITDA 1,412 1,111 9 739
Profit (loss)
attributable to
equity shareholders 694 1,161 (25) 454
Special items 23 (677) (3) (3)
Share of associates`
special items - 11 - -
Taxation on items above (11) 41 1 1
Headline earnings (loss) 706 536 (27) 451
Unrealised non-hedge
derivatives and
other commodity contracts - - - 2
Fair value adjustment on
option component
of convertible bond - - - -
Fair value loss on
mandatory convertible bond - - - -
Adjusted headline
earnings (loss) 706 535 (27) 453
Ore reserve
development capital 262 49 14 65
Stay-in-business
capital 160 270 15 140
Project capital 110 101 73 250
Total capital
expenditure 532 420 102 456
FINANCIAL RESULTS -
YEAR
ENDED DECEMBER 2011 $`m Less equity
Corporate Sub-total accounted Total group
and other investments
Gold income received - 6,962 (392) 6,570
Cash costs 37 (3,473) 222 (3,252)
By-products revenue 2 225 (1) 224
Total cash costs 39 (3,248) 221 (3,028)
Retrenchment costs - (15) - (15)
Rehabilitation and
other non-cash costs - (233) 5 (229)
Amortisation of assets (11) (779) 9 (770)
Total production costs 27 (4,276) 234 (4,042)
Inv entory change - 95 - 96
Cost of sales 27 (4,181) 234 (3,946)
Unrealised non-hedge
derivatives and other
commodity contracts - (1) - (1)
Gross profit (loss) 28 2,780 (157) 2,623
Corporate and other costs (238) (304) (1) (305)
Exploration (45) (284) 5 (279)
Intercompany
transactions 58 - - -
Special items (570) 163 - 163
Operating profit (loss) (768) 2,355 (153) 2,202
Net finance (costs)
income, unwinding of
obligations and fair
value adjustments 42 43 1 44
Exchange gain (loss) 5 (3) 5 2
Share of equity
accounted investments
profit (loss) 8 (23) 96 73
Profit (loss) before
taxation (713) 2,373 (51) 2,321
Taxation (11) (775) 51 (723)
Profit (loss) for the
period (724) 1,598 - 1,598
Equity shareholders (732) 1,552 - 1,552
Non-controlling
interests 9 46 - 46
Operating profit (loss) (768) 2,355 (153) 2,202
Unrealised non-hedge
derivatives and other
commodity contracts - 1 - 1
commodity contracts
Intercompany
transactions (58) - - -
Special items 564 (96) - (96)
Share of associates`
EBIT (6) (26) 153 127
EBIT (268) 2,234 - 2,234
Amortisation of assets 11 779 (9) 770
Share of associates`
amortisation - - 9 9
EBITDA (257) 3,014 - 3,014
Profit (loss)
attributable to equity
shareholders (732) 1,552 - 1,552
Special items 564 (96) - (96)
Share of associates`
special items (14) (4) - (4)
Taxation on items above - 32 - 32
Headline earnings (loss) (183) 1,484 - 1,484
Unrealised non-hedge
derivatives and
other commodity contracts - 1 - 1
Fair value adjustment
on option component
of convertible bond (84) (84) - (84)
Fair value loss on
mandatory convertible bond (104) (104) - (104)
Adjusted headline
earnings (loss) (371) 1,297 - 1,297
Ore reserve
development capital - 390 - 390
Stay-in-business capital 17 603 (11) 592
Project capital - 534 (78) 456
Total capital
expenditure 17 1,527 (88) 1,439
Rounding of figures may result in computational discrepancies.
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
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: +233 303 772190
Fax: +233 303 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
T T Mboweni (Chairman)
F B Arisman #
R Gasant
Ms N P January-Bardill
W A Nairn
Prof L W Nkuhlu
F Ohene-Kena +
S M Pityana
R J Ruston
* British # American
Australian South African
+ Ghanaian Indian
Officers
Company Secretary: Ms L Eatwell
Investor Relations Contacts
South Africa
Michael Bedford
Telephone: +27 11 637 6273
Mobile: +27 82 374 8820
E-mail: mbedford@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@AngloGoldAshanti.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 BS13 8AE
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: +233 302 229664
Fax: +233 302 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
PUBLISHED BY ANGLOGOLD ASHANTI
PRINTED BY INCE (PTY) LIMITED
Date: 10/05/2012 07:50:00 Supplied by www.sharenet.co.za
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