Wrap Text
Report for the quarter and six months ended 30 June 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
Report
for the quarter and six months ended 30 June 2012
Group results for the quarter...
- Gold production of 1.07Moz beats guidance on strong performances from Continental Africa and Americas.
- Total cash costs of $801/oz, better than guidance due to improved production and weaker local currencies.
- Adjusted headline earnings of $253m, or 65 US cents a share.
- Quarterly dividend declared of 100 South African cents per share (approximately 12 US cents per share).
- Capital projects remain on budget and on schedule; Tropicana first gold is expected at the end of next year.
- Completed acquisition of residual 50% stake in Serra Grande in Brazil ($220m).
For the first half...
- Record EBITDA of $1.47bn achieved in seasonally weaker first half.
- Adjusted headline earnings up 25% to $682m.
Post quarter end...
- Successful refinancing removes concentration of debt maturities and introduces longer tenor to balance sheet.
- Revolving Credit Facility of $1bn refinanced at competitive rates and maturity extended from 2014 to 2017.
- New $750m 10-year, investment-grade rated bond issued at a competitive coupon, issue significantly oversubscribed.
- Completed acquisition of Mine Waste Solutions ($335m) for additional gold and uranium production.
Quarter Six months
ended ended ended ended ended
Jun Mar Jun Jun Jun
2012 2012 2011 2012 2011
US dollar / Imperial
Operating review
Gold
Produced - oz (000) 1,073 981 1,086 2,054 2,124
Price received 1 - $/oz 1,607 1,692 1,510 1,650 1,451
Total cash costs - $/oz 801 794 705 798 705
Total production costs - $/oz 1,002 999 916 1,000 905
Financial review
Gross profit - $m 633 717 627 1,350 1,125
Profit attributable to equity shareholders - $m 287 563 470 850 711
- cents/share 74 146 122 220 184
Headline earnings - $m 307 551 477 858 718
- cents/share 79 142 124 222 186
Adjusted headline earnings 2 - $m 253 429 342 682 544
- cents/share 65 111 89 176 141
Cash flow from operating activities - $m 462 581 635 1,044 1,148
Capital expenditure - $m 451 354 346 806 594
Notes: 1. Refer to note B "Non-GAAP disclosure" for the definition. $ represents US dollar, unless otherwise stated.
2. Refer to note A "Non-GAAP disclosure" for the definition. 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 Ashantis operations,
individually or in the aggregate, including the achievement of project milestones, the completion and commencement of commercial operations of certain of AngloGold
Ashantis exploration and production projects and the completion of acquisitions and dispositions, AngloGold Ashantis 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 Ashantis 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 Ashantis 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 the companys 2011 annual report on Form 20-F, which was filed with the Securities and Exchange Commission
in the United States on 23 April 2012 and the prospectus supplement to the companys prospectus dated 17 July 2012 that was filed with the Securities and Exchange
Commission on 25 July 2012. These factors are not necessarily all of the important factors that could cause AngloGold Ashantis 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 todays 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 30 June 2012
Production Total cash costs Gross profit (loss)
Year-on-year Qtr on Qtr Year-on-year Qtr on Qtr Year-on-year Qtr on Qtr
oz (000) % Variance 1 % Variance 2 $/oz % Variance 1 % Variance 2 $m $m Variance 1 $m Variance 2
SOUTH AFRICA 362 (16) 18 779 13 (8) 205 (59) 23
Great Noligwa 24 (11) 41 1,124 5 (28) 6 - 11
Kopanang 56 (33) 65 866 27 (26) 28 (20) 19
Moab Khotsong 54 (28) 38 909 37 (13) 12 (25) 12
Mponeng 120 (6) 8 588 4 - 96 (6) (10)
Savuka 12 - 20 885 1 (5) 7 - -
TauTona 52 (13) (4) 890 5 1 19 (2) (9)
Surface Operations 44 (8) 10 682 16 (7) 37 (6) (1)
CONTINENTAL AFRICA 407 8 7 827 17 1 244 (1) (73)
Ghana
Iduapriem 47 7 4 1,006 13 (2) 21 3 (1)
Obuasi 83 - 36 952 30 (14) 34 (15) 8
Guinea
Siguiri - Attr. 85% 67 2 20 726 (9) (21) 46 3 1
Mali
Morila - Attr. 40% 3 22 (12) - 866 5 23 15 (1) (6)
Sadiola - Attr. 41% 3 22 (33) (12) 1,183 72 22 9 (16) (7)
Yatela - Attr. 40% 3 6 - (14) 2,333 82 30 (5) (6) (4)
Namibia
Navachab 21 50 5 831 (31) (7) 13 11 (1)
Tanzania
Geita 140 31 (4) 631 43 18 106 23 (64)
Non-controlling interests,
5 (3) -
exploration and other
AUSTRALASIA 71 16 4 1,187 (26) (8) 25 35 8
Australia
Sunrise Dam 71 16 4 1,105 (27) (9) 31 36 9
Exploration and other (6) (1) (1)
AMERICAS 233 8 4 671 38 26 163 14 (71)
Argentina
Cerro Vanguardia - Attr. 92.50% 56 17 10 657 149 141 41 (7) (25)
Brazil
AngloGold Ashanti Mineração 97 15 10 692 40 18 54 7 (23)
Serra Grande - Attr. 50% 15 7 (6) 859 (2) 1 8 11 (3)
United States of America
Cripple Creek & Victor 64 (9) (9) 599 10 4 51 (8) (13)
Non-controlling interests,
10 12 (5)
exploration and other
OTHER 15 (6) 12
Sub-total 1,073 (1) 9 801 14 1 652 (16) (101)
Equity accounted investments included above (19) 22 17
AngloGold Ashanti 633 6 (84)
1 Variance June 2012 quarter on June 2011 quarter - increase (decrease). 3 Equity accounted joint ventures.
2 Variance June 2012 quarter on March 2012 quarter - increase (decrease).
Rounding of figures may result in computational discrepancies.
Financial and Operating Report
OVERVIEW FOR THE QUARTER
FINANCIAL AND CORPORATE REVIEW
Second quarter adjusted headline earnings (AHE) were $253m, or 65 US cents per share in the three months to
30 June, compared with $342m, or 89 US cents per share in the second quarter of 2011. The impact of 6% higher year-
on-year gold prices was offset by higher cash costs and marginally lower production compared with the same period a
year earlier. The second quarter of 2011 also included the sale of the Ayanfuri royalty. Also, expenditure on exploration,
corporate and capacity building costs for the quarter were higher year-on-year, in line with guidance. The tax rate also
increased during the period given that the second quarter of 2011 benefited from unutilised tax losses, while the second
quarter of 2012 was impacted by withholding taxes and translation effects on deferred tax balances in Brazil.
AHE declined by 41% from the previous quarter due principally to exploration and other expenditures which increased,
though in line with annual guidance provided in February of this year. In addition, this level of adjusted headline earnings
reflects a lower average gold price received during the quarter when compared to the previous quarter, lower uranium
and silver by-product credits, higher gold inventory levels that were sold only subsequent to the end of the quarter due to
the timing of gold shipments and a non-recurring one-time deferred tax credit that was included in the first quarter.
Net profit attributable to equity shareholders for the second quarter of 2012 amounted to $287m compared to AHE of
$253m, mainly due to fair value gains on the convertible bonds. For the half-year, net profit attributable to equity
shareholders was $850m.
Cash flow generated from operating activities was $462m during the second quarter, while total capital expenditure was
$451m(1), taking the year-to-date capital expenditure to $806m. As indicated in the press release issued on 10 May, net
debt(2) increased from $483m to $879m at the end of June following the completion of the acquisition of Kinross 50%
interest in Serra Grande for $220m and higher capital expenditure quarter-on-quarter. The Serra Grande transaction was
successfully closed on 28 June 2012 and the Mine Waste Solutions transaction was completed on 20 July 2012, after the
quarter end. 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 utilised ($335m) for the acquisition of Mine Waste
Solutions in July 2012.
Maintaining the integrity of AngloGold Ashantis balance sheet and investment credit grade ratings remains a strategic
priority, especially given its direct impact on the companys cost of capital and ability to fund organic growth projects.
After the end of the quarter, at the end of July, the $1bn, four-year revolving credit facility (RCF), due to mature in 2014,
was replaced with a new, five-year facility for the same amount, which comes due in 2017. In addition, a $750m, 10-year
bond issue was successfully completed days later, against a challenging macroeconomic backdrop, at a competitive
coupon of 5.125% and an effective yield of 5.203%. This is lower than the 5.375% coupon on the existing $700m,
10-year notes which mature in 2020. These transactions together provide longer-term maturity to the debt profile. The
proceeds from the bond will meet the groups cash and capital investment needs, leaving the new RCF principally as a
standby credit facility. This strategy should reduce significantly the potential refinancing risk in 2014, when the $732.5m
convertible bond matures.
DIVIDEND
The Board has declared a dividend of 100 South African cents per share (approximately 12 US cents per share) for the
second quarter in line with previous guidance.
OPERATING RESULTS
Production for the three months to 30 June 2012 was 1.073Moz at a total cash cost of $801/oz, better than guidance for
the quarter of 1.04Moz at a total cash cost of between $840/oz - $845/oz. This compares with production of 1.086Moz at
a total cash cost of $705/oz for the second quarter of 2011. The operating result was supported by strong operating
performances from the groups Continental Africa region, particularly from Geita and Siguiri, and the Americas region
where Brazil and Argentina were the standout performers.
SAFETY
Tragically, five fatalities were reported during the period: one at Great Noligwa, two at TauTona in South Africa; one at
Mongbwalu in the DRC; and one at Obuasi in Ghana. These incidents remain a great concern to us and all efforts
continue towards improving safety throughout the organisation. Risk management training continues across the
organisation alongside implementation of incident risk protocols, the on-going rollout of the Safety Standards Framework
and implementation of Project ONE; these programmes together aim to realise further improvements to the groups
safety performance. Those efforts continue to be reflected in the broader safety performance, where the All Injury
Frequency Rate (AIFR) the broadest measure of safety performance was 8.39 per million hours worked for the year
to date, a 14% improvement on the 9.76 at the end of 2011. Production losses and associated interruptions due to safety
stoppages at the South African operations improved compared with the previous quarter.
(1) including equity-accounted joint ventures; (2)excluding mandatory convertible bond
OPERATING REVIEW
The South African operations produced 362,000oz at a total cash cost of $779/oz in the three months to 30 June 2012
compared with 431,000oz at a total cash cost of $688/oz a year earlier. The year-on-year performance was impacted by
power-tariff increases in South Africa, increased seismic activity in the West Wits area, geological constraints and lower
yields, inflationary pressures and continued safety related stoppages through the quarter, albeit at a lower rate than the
previous three months. This remains a risk to production levels going forward.
At the West Wits Operations, Mponengs production fell 6% year-on-year to 120,000oz due to lower volumes impacted
by increased seismicity and developments to improve in-stope safety. Total cash costs rose 4% to $588/oz year-on-year.
At neighbouring TauTona, output decreased from a year earlier to 52,000oz, following a 7-day safety-related stoppage
imposed by the State Mine Inspector and also disruptions due to increased seismicity in the West Wits region. Total cash
costs increased by 5% to $890/oz.
The Vaal River Operations were also impacted by safety-related stoppages along with face-length constraints. Great
Noligwas output fell 11% year-on-year to 24,000oz as a result of the lower area mined and declining yields, whilst total
cash costs climbed by 5% to $1,124/oz. Gold production at Moab Khotsong fell by 28% from a year earlier to 54,000oz
with a resulting 37% rise in total cash cost to $909/oz. Kopanang, adversely affected by similar mining flexibility issues
and geological constraints, experienced a 33% year-on-year decline in production to 56,000oz while total cash costs rose
by 27% to $866/oz.
Surface Operations experienced an 8% decline in production to 44,000oz as a result of lower yields. Total cash costs
increased by 16% to $682/oz due to increased expenditure related to dust-control improvement measures and
inflationary pressure on reagents and fuel.
The Continental Africa operations produced 407,000oz at a total cash cost of $827/oz in the second quarter of 2012,
compared with 377,000oz at a total cash cost of $705/oz reported in the second quarter of 2011.
Geita delivered another strong quarter with production 31% higher at 140,000oz mainly driven by higher tonnage
throughput and also improved grades. The operation continues to show encouraging trends and remains on track to
replace its SAG mill toward the end of this year, or early in 2013. In Ghana, Obuasi delivered flat year-on-year production
of 83,000oz at 30% higher cash costs of $952/oz. Grades at this operation remain lower than anticipated and
development rates are below plan. Negotiations to improve the development contractors performance are ongoing.
At Iduapriem, increased tonnage throughput due to improved plant availability resulted in a 7% increase in year-on-year
production of 47,000oz. Total cash costs increased by 13% to $1,006/oz over the same period a year earlier, due to
higher equipment maintenance costs. At Siguiri, in Guinea, production was 2% higher year-on-year at 67,000oz and total
cash costs were 9% lower supported by continued improvements to tonnage throughput. At Morila, in Mali, production
declined 12% to 22,000oz, while total cash costs increased 5% to $866/oz. At Sadiola, production declined 33% to
22,000oz and total cash costs increased 72% to $1,183/oz primarily due to declining grades, harder ore and longer
haulage distances. In Namibia, Navachab reported a 50% increase in production to 21,000oz, with total cash costs
improving by 31% to $831/oz year-on-year. The operation also showed improving trends in tonnage throughput given
that it treated softer ore during the quarter.
The Americas region produced 233,000oz of gold at a total cash cost of $671/oz in the second quarter of 2012,
compared with 216,000oz at a total cash cost of $487/oz a year earlier.
At AngloGold Ashanti Brasil Mineração, production was 15% higher than the previous year at 97,000oz with higher
production from Cuiabá circuit and the contribution from the Córrego do Sítio project which continues to ramp-up, albeit
at a slightly slower pace than anticipated. Production is expected to stabilise in the second half of the year. Total cash
costs rose by 40% to $692/oz as a result of higher maintenance expense, lower by-product credits, lock-up of gold in
process and ore stockpile movements. At Serra Grande, attributable production was 7% higher while total cash costs
were lower at $859/oz, compared to $881/oz in the second quarter of 2011. In Argentina, at Cerro Vanguardia,
attributable gold production at 56,000oz was 17% higher than the same period last year due to an increase in treated
tons according to the production plan. Total cash costs at the operation was 149% higher than last year at $657/oz
principally reflecting lower silver by-product credits, as a result of both lower silver prices and lower silver sales, in
addition to wage increases. At Cripple Creek & Victor gold production was 64,000oz, which was 9% lower than the same
quarter last year due to fewer recoverable ounces placed on the leach pad in the first quarter which resulted in fewer
ounces available in fresh ore for recovery in the second quarter. Total cash costs increased by 10% to $599/oz due to
higher cost ounces placed on the pad.
In Australasia, production from Sunrise Dam rose 16% year-on-year to 71,000oz with total cash costs of $1,105/oz
compared to $1,516/oz a year ago. The operation has recovered substantially from flooding and a pit-wall failure which
severely impacted performance in 2011.
PROJECTS
AngloGold Ashanti incurred capital expenditure of $451m (including equity-accounted joint ventures) during the quarter,
of which $193m was spent on growth projects. Of the growth related capital $37m was spent in the Americas, $81m was
spent in Continental Africa, $43m in Australasia and $32m in South Africa.
In the Democratic Republic of the Congo, the board formally approved investment in several projects during last quarter,
creating a clear pathway for growth in the groups production. Both key projects in the DRC, Kibali and Mongbwalu, were
approved for development. Both projects are expected to generate significant revenues for the DRC government and
create several thousand direct and indirect jobs for the countrys north-eastern 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 with recent
drilling indicating good upside potential. The project is expected to require attributable 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 capital investment will be made between 2012 and 2015, with first gold
from the open pit targeted for late next year. 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. Open pit mining has started on
site while at the same time, decline development for the underground mine has commenced with a boxcut to open up the
tunnel portals. Terracing for the metallurgical plant, earthworks for the first of four hydropower stations and infrastructure
construction are all progressing well. Thirteen excavators and 53 trucks had excavated more than 500,000m³ of soil by
the end of June and more than 100,000m3 of fill. Manufacturing of the mills and hydro turbines is 85% complete and
more than 1,000 tonnes of structural steel and platework is en route to site. The project currently employs some 3,500
people, of whom 700 are housed on site. The resettlement programme is also on schedule, with 774 families already
relocated to the new model village of Kokiza. This settlement will ultimately accommodate 3,800 families and will also
include civic infrastructure comprising schools, clinics, shops and churches.
Mongbwalu (AngloGold Ashanti 86.22%), the joint venture with state-owned Sokimo, is designed as a small-scale
beachhead in the prospective Kilo gold belt, on a concession covering almost 6,000km2. AngloGold Ashanti plans to
build the underground project and then expand the operation from internally driven cash flow, allowing economies of
scale to be realised. This approach will limit the companys 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 an estimated total cash
cost of $760/oz (nominal). During this quarter, the early works programme continued. The road upgrade is progressing
well, despite a shortage of good-quality aggregate, and plant and earthworks equipment items are scheduled for delivery.
Work on upgrading the exploration camp was undertaken; relocation of the artisanal miners continued and fencing of the
exclusion zone was completed. The first phase of the Budana hydroelectric power plant refurbishment was completed
with the successful commissioning of the plant, which has improved the reliability and quantity of power available.
The Tropicana Gold Project (AngloGold Ashanti 70% and manager, Independence Group 30%) remains on budget and
schedule to pour first gold during the fourth quarter of next year, with the project development progressing past the
halfway mark. Engineering and drafting is now complete and the equipment and materials have been procured. Mining
contractor MacMahon has mobilised on site and mining has commenced. Engineering, Procurement, and Construction
Management (EPCM) procurement is substantially complete and 87% of the EPCM-controlled packages have been
awarded. The tailings and electrical and instrumentation contract-award processed are well advanced. Notably, the
power station contract has also been awarded, locking in committed costs. The focus now shifts to contract execution
and construction. The 220km access road and airstrip have been completed. The village is substantially completed and
process plant concrete & CIL tankage commenced. The mining contractor is mobilised and has commenced clearing and
stripping.
At the Corrégo do Sítio Sulphide Project the pressure oxidation circuit reached full production in June and the milling
circuit reached nominal production rate at the end of June with stabilisation expected by early August. Mine ramp-up is
ongoing, expected to reach full capacity by the end of the year.
Technology update
An important strategic initiative for the group is to create a new, automated mining method based on existing rock-cutting
technology. The first stage of this initiative has been underway for the past two years and has made substantial
headway. The most notable recent milestone was the completion on 24 May, 2012, of a pilot hole of 244mm width bored
between reef drives from 97 Level at the TauTona mine in South Africa. On 29 June, the hole was widened to a diameter
of 1,050mm. Over the next three months, the team plans to complete another 6 holes at the 97 Level site, while
continuing to improve the speed and accuracy of the process and introducing a recently developed high-strength backfill.
The ultimate aim of this work is to develop safer, more productive mining methods by reducing the need for drilling and
blasting with wide application in all types of ore bodies.
EXPLORATION
Total exploration expenditure during the second quarter, inclusive of expenditure at equity accounted joint ventures, was
$118m ($43m on brownfield, $38m on greenfield and $37m on pre-feasibility studies), compared with $82m in the
second quarter of 2011 ($32m on brownfield, $27m on greenfield, and $23m on pre-feasibility studies). The following are
highlights from the companys exploration activities during the quarter. More detail on AngloGold Ashantis exploration
programme can be found at www.anglogoldashanti.com. An updated Reserve and Resources Statement will be
published with our full-year financial report at the end of the financial year.
Greenfield exploration activities were undertaken in six regions (Australia, Americas, Pacific, Sub-Saharan Africa and the
Middle East & North Africa) during second quarter of 2012. A total of 109,387 metres of diamond, RC and aircore drilling
was completed at existing priority targets and used to delineate new targets in Australia, Colombia, Guinea, Egypt, the
Solomon Islands and the DRC.
In Australia, at Tropicana, drilling continued at Havana Deeps with a total of 1,128m of RC and 16,613m of diamond
drilling completed in 38 holes. Drilling will conclude at this Project in the third quarter. A revised Mineral Resource will
be finalised by the end of the year and will form the basis of a further pre-feasibility study into a possible mine extension.
At Sunrise Dam, exploration drilling at Vogue and below current workings continued to expand the mineralised system.
Vogue results include 121m @2.54g/t, 107m @ 2.63g/t, 24m @ 20.5g/t and 14.8m @8.15g/t.
During the second quarter, brownfield and greenfield exploration in the Americas continued in Colombia, Brazil and
North America. At AngloGold Ashanti Brasil Mineração in Brazil, brownfields drilling activities continued at several
targets in and around the production centers at Cuiaba Lamego and CDS and at the Pari exploration project. At Serra
Grande, the fast track exploration programme continued to evaluate the regional potential. AngloGold Ashanti entered
into a joint venture with Graben Resources in the Juruena Belt.
In Colombia at Gramalote, the drilling in the quarter continued for pre-feasibility infrastructure and geotechnical projects
with additional work to test satellite targets around the proposed Gramalote Central pit area. Mapping and sampling
work continued around the Gramalote project district targets.
At La Colosa, drilling continued for geotechnical and hydrological studies. Four drills were operating during the quarter.
Positive assay results continued to return from holes drilled in the first quarter of 2012. From the center of the main
intrusion COL187 returned an intercept of 223.6m @ 1.73g/t from a depth of 126m. Drilling to the west of the deposit
showed up economic gold, copper and molybdenum grades which will be followed up. The planning for the next round of
drill platforms and holes was completed and submitted for permitting.
In Sub-Saharan Africa, generative exploration programmes were carried out in the DRC, Guinea and Tanzania.
In Guinea, exploration work focussed on resource delineation at the Saraya orebody located in Block 2, while along the
Kounkoun trend in Block 3 and infill and resource delineation drilling was undertaken. Soil sampling continued in Block 4,
with drill testing planned to commence after the wet season in the fourth quarter.
At Saraya, Saraya South and Didi (Block 2), 15,144m of drilling was completed, comprising of 13,612m aircore, 1,302m
RC and 230m of diamond core. Drilling continues to delineate high-grade results with peak values returned during the
quarter including; 34m @ 1.52g/t from 158m in SARCDD013, 14m @ 3.05g/t from 15m, 16m @ 1.03g/t from 83m and
24m @1.04g/t from 142m in SARC342, 19m @ 4.01g/t from 85m in SARC345 and 17m @ 1.57g/t from 214m, 15m @
4.16g/t and 21m @ 2.14g/t from 281m in SARCDD013.
At Kounkoun Central and Kounkoun South (Block 3), a total of 13,803m was drilled following up previously delineated
ore zones, and comprises 4,762m aircore, 8,114m RC and 207m of diamond core. Best results include, but not limited
to: 16m @ 3.38g/t from 97m in KKAC311, 28m @ 1.69g/t from 122 including 7m @ 3.6g/t in KKAC510, 36m @ 2.12g/t
from 40m and 38m @ 1.24g/t from 88m in KKAC516, 40m @ 2.47g/t from 2m including 15m @ 3.17g/t KKRC056 and
26m @ 2.26g/t from 137m including 10m @ 3.7g/t in KKRC060.
At Siguiri, a total of 42,523m of drilling was completed. A total of 24,916m of RC infill drilling focused on upgrading oxide
Mineral Resources around Kozan, Eureka East, Kossise, Soloni and Kalamagna. The infill drilling at Kozan and Eureka
East returned some very good intersections, confirming the continuous and robust nature of these orebodies.
In Tanzania, a 1,500m diamond drilling programme has commenced at the Mkurumu Project, in Joint Venture with the
Mafulira Village Mining Company. The drilling follows airborne geophysical surveying, sampling and geological mapping,
and is expected to be completed in early August. A further 1,500m of diamond drill testing of priority targets at the
Lusahunga Project, is scheduled to commence in mid-August. The Lusahunga licences (150km west of Geita Gold Mine)
are the subject of a Heads of Agreement concluded with Oryx Mining and Exploration Ltd during 2010.
At Geita, exploration focused on Mineral Resource infill drilling programmes at Geita Hill West, Nyankanga Block 1,
Nyankanga Block 2, Nyankanga Cut 7_8, Ridge 8, and the Star & Comet_Ridge 8 gap, as well as pre-resource drilling of
refractory ore in the Matandani area. A total of 30,710m of RC and core were drilled. Assay results returned to date show
encouraging intersections including 34.12m @ 4.68g/t Au (GHDD0312) from 29.2m at Geita Hill West and 11.66m @
14.59g/t Au from 21m (R8RC0121) which supports the concept of a shallow high grade connection between the Star &
Comet and Ridge 8 deposits.
In the Democratic Republic of the Congo, assays from completed holes to the west of KCD at Kibali were received
during the quarter and suggest the possibility of a further mineralised system underneath the 9,000 lodes. The potential
of this system will be explored via further drilling.
Within a 10km radius of the main Sessenge KCD deposit, there are a number of satellite deposits which are
considered to have significant potential. Drilling commenced at three of these high priority satellite deposits. Assay
results from drilling at the Mengu Hill area, ~7km NW of the KCD-Sessenge deposit, were received and best
intersections include (MDD040) 74.7m @ 3.78g/t Au from 0m and (MDD042) 67m @ 5.93g/t Au from 0m. Drilling at
Pakaka was designed to test the continuation of the Pakaka Pamao Bakangwe Aval mineralisation down plunge. The
programme involves scout drilling of 4 diamond holes (1,620m) over a 1.5km strike length. Best intersections for the
reconnaissance holes included (PDD145) 29m @ 3.2g/t from 394m.
The historical high grade Gorumbwa Mine is located immediately to the north of the Sessenge pit and to the west of the
main KCD corridor. A first phase of diamond drilling designed to upgrade the Mineral Resource is nearing completion
and consisted of four diamond holes for a total of 1,770m and two twin holes (600m).
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. Here exploration activities during the quarter
included diamond drilling at Hutite, Anbat and Kab Alabyad (Egypt), channel-chip sampling at Pandora (Djibouti) and
stream sediment sampling at Kerkasha and Akordat North (Eritrea).
At Hutite, 5,022m of diamond drilling was completed from the Central Domain and results were received from nine holes.
The best results include: 7m @ 7.1 g/t Au from 72m and 7m @ 20.9 g/t Au from 82m in HUD042, 4m @ 4.2 g/t Au from
152m in HUD047, 3m @ 11.9g/t Au from 207 in HUD048 and 2m @ 17.2 g/t Au from 105m in HUD035. The
mineralisation in the Central Domain is defined over 1km of strike and down to 200m below surface. Deep drilling to a
depth of 900m below surface will commence in the third quarter of 2012.
A total of 1,086m of diamond drilling was completed at the Anbat prospect, located 45km SW of Hutite. The drilling
continued to test the veined granodiorite and also the altered felsic porphyry on the contact of the granodiorite and
sedimentary rocks. Further encouraging results were received from the felsic porphyry and include: 3m @ 22.3g/t Au
from 118m in AND019 and 3m @ 21.6g/t Au from 178m in AND020 and 45m @ 1.74 g/t Au from 43m in AND021. The
results confirm that the porphyry is the main target at Anbat and 3D modelling of the porphyry will be completed before
any further drilling takes place.
Work completed at the non-managed Afar JV with Stratex International plc in Ethiopia and Djibouti has involved follow-
up, systematic channel-chip sampling at Pandora (Djibouti) and preparations for an aeromagnetic and radiometric survey
at Megenta (Ethiopia). The channel-chip sampling was completed perpendicular to the main Pandora vein at 25m
intervals along the strike of the 1.7km long Pandora vein, with best results including, but not limited to, 11.1m @ 5.09g/t,
9.4m @ 3.37g/t, 17.9m @ 2.07g/t, 13.9m @ 5.35g/t and 5.3m @ 6.05g/t. Follow-up drilling at both Pandora and the
nearby Hercules project is planned for the third quarter of 2012.
MANAGEMENT CHANGES
In recognition of the importance of the opportunity that has presented itself in Colombia, the company has decided to
create a focused, executive management accountability to advance our investment in that country. Charles Carter,
formerly the Executive Vice President of Business Strategy, assumes accountability for AngloGold Ashanti's Colombian
business. In this new role he will work closely with Tony O'Neill's greenfields exploration team and Ron Largent's
America's projects and production team, both of whom will continue to support the successful development of our
business in Colombia. This appointment recognises that developing a new sustainable gold business that benefits the
state, regional and local communities in Colombia, remains an important objective for AngloGold Ashanti. Colombia will
continue to form part of the broader Americas region that is reviewed as a single unit by the chief operating decision
maker.
In his previous corporate strategy, business planning and risk management work, Charles will be succeeded in the
corporate team by Mike McFarlane, one of the founding members of the company's Technology Innovation Consortium,
which is researching and developing the means to safely automate mining in the South Africa Region's ultra-deep mines.
Mike, who held senior operating and management positions at Canadas Inco, including technical roles on the worlds
deepest and most productive base metals mines in Sudbury, will continue to remain closely involved in the ongoing
technology innovation work in the South Africa Region.
Following an extensive search, David Noko fills the post of Executive Vice President: Social and Sustainable
Development which was left vacant last year following Thero Setiloanes departure. This is an important appointment that
complements a strong executive team and gives us a new dimension of technical and managerial skill in a key area of
the business. David, a mining engineer who holds an MBA from Harriot-Watt University, is a former CEO and managing
director of De Beers Consolidated Mines and most recently held the position of Deputy Chairman on the Board of
Director's of Harmony Gold Mining Limited. In his new executive role at AngloGold Ashanti, he assumes corporate
accountability for social and sustainable development, global security, infrastructure and development strategies, human
rights and public affairs.
OUTLOOK
Gold production for the third quarter of 2012 is estimated at between 1.07Moz and 1.1Moz. Total cash costs are
estimated at between $835-$865/oz at an average exchange rate of R8.15/$, BRL1.85/$, A$1.00/$ and ARS4.60/$ and
fuel at $100/barrel.
No change to gold production guidance for 2012 which is estimated at 4.3Moz to 4.4Moz with total cash costs in 2012
estimated at between $780-$805/oz at an average exchange rate of R8.00/$, BRL1.86/$, A$1.02/$ and ARS4.52/$ and
fuel at $108/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 stoppages 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 Quarter Six months Six months
ended ended ended ended ended
June March June June June
2012 2012 2011 2012 2011
US Dollar million Notes Reviewed Reviewed Reviewed Reviewed Reviewed
Revenue 2 1,684 1,794 1,704 3,478 3,193
Gold income 1,619 1,706 1,576 3,325 2,998
Cost of sales 3 (986) (989) (947) (1,975) (1,873)
Loss on non-hedge derivatives and other
commodity contracts - - (2) - -
Gross profit 633 717 627 1,350 1,125
Corporate administration, marketing and other
expenses (69) (67) (66) (135) (132)
Exploration costs (87) (75) (63) (163) (120)
Other operating expenses 4 (29) (8) (8) (37) (21)
Special items 5 8 17 29 25 30
Operating profit 456 584 519 1,040 882
Interest received 9 12 11 21 19
Exchange gain (loss) 8 (2) (6) 6 (5)
Fair value adjustment on option component of
convertible bonds 24 43 73 67 88
Finance costs and unwinding of obligations 6 (49) (49) (50) (98) (99)
Fair value adjustment on mandatory convertible
bonds 29 79 64 108 87
Share of equity-accounted investments' (loss)
profit (6) 22 21 16 32
Profit before taxation 471 689 632 1,160 1,004
Taxation 7 (186) (111) (149) (297) (273)
Profit for the period 285 578 483 863 731
Allocated as follows:
Equity shareholders 287 563 470 850 711
Non-controlling interests (2) 15 13 13 20
285 578 483 863 731
Basic earnings per ordinary share (cents) 1 74 146 122 220 184
Diluted earnings per ordinary share (cents) 2 61 110 85 171 138
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 and six months ended 30 June 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
Mark Cutifani, the Group's Chief Executive Officer and Mr Srinivasan Venkatakrishnan, the Group's Chief Financial Officer. The financial
statements for the quarter ended 30 June 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 Six months Six months
ended ended ended ended ended
June March June June June
2012 2012 2011 2012 2011
US Dollar million Reviewed Reviewed Reviewed Reviewed Reviewed
Profit for the period 285 578 483 863 731
Exchange differences on translation of foreign
operations (128) 95 25 (33) (23)
Share of equity-accounted investments' other
comprehensive loss - - (1) - (1)
Net (loss) gain on available-for-sale financial
assets (12) 1 (27) (11) (29)
Release on disposal and impairment of
available-for-sale financial assets - 1 2 1 2
Deferred taxation thereon 5 - - 5 -
(7) 2 (25) (5) (27)
Deferred taxation rate change on actuarial losses - (9) - (9) -
Other comprehensive (loss) income
for the period net of tax (135) 88 (1) (47) (51)
Total comprehensive income
for the period net of tax 150 666 482 816 680
Allocated as follows:
Equity shareholders 152 651 469 803 660
Non-controlling interests (2) 15 13 13 20
150 666 482 816 680
Rounding of figures may result in computational discrepancies.
Group statement of financial position
As at As at As at As at
June March December June
2012 2012 2011 2011
US Dollar million Note Reviewed Reviewed Audited Reviewed
ASSETS
Non-current assets
Tangible assets 6,789 6,763 6,525 6,271
Intangible assets 243 228 210 201
Investments in associates and equity-accounted joint ventures 835 765 702 661
Other investments 178 196 186 226
Inventories 454 421 410 419
Trade and other receivables 81 80 76 157
Deferred taxation 61 55 79 21
Cash restricted for use 24 24 23 25
Other non-current assets 9 10 9 10
8,674 8,542 8,220 7,991
Current assets
Inventories 1,138 1,083 1,064 934
Trade and other receivables 460 409 350 286
Current portion of other non-current assets - - - 3
Cash restricted for use 32 54 35 31
Cash and cash equivalents 987 1,216 1,112 839
2,617 2,762 2,561 2,093
Non-current assets held for sale 2 2 21 2
2,619 2,764 2,582 2,095
TOTAL ASSETS 11,293 11,306 10,802 10,086
EQUITY AND LIABILITIES
Share capital and premium 10 6,711 6,695 6,689 6,648
Retained earnings and other reserves (1,135) (1,103) (1,660) (2,000)
Shareholders' equity 5,576 5,592 5,029 4,648
Non-controlling interests 61 154 137 137
Total equity 5,637 5,746 5,166 4,785
Non-current liabilities
Borrowings 2,492 2,382 2,456 2,451
Environmental rehabilitation and other provisions 795 796 782 637
Provision for pension and post-retirement benefits 217 206 195 189
Trade, other payables and deferred income 14 14 14 20
Derivatives 26 50 93 88
Deferred taxation 1,149 1,132 1,158 1,050
4,693 4,580 4,698 4,435
Current liabilities
Current portion of borrowings 32 53 32 30
Trade, other payables and deferred income 732 720 751 703
Taxation 199 207 155 133
963 980 938 866
Total liabilities 5,656 5,560 5,636 5,301
TOTAL EQUITY AND LIABILITIES 11,293 11,306 10,802 10,086
Rounding of figures may result in computational discrepancies.
Group statement of cash flows
Quarter Quarter Quarter Six months Six months
ended ended ended ended ended
June March June June June
2012 2012 2011 2012 2011
US Dollar million Reviewed Reviewed Reviewed Reviewed Reviewed
Cash flows from operating activities
Receipts from customers 1,691 1,758 1,641 3,449 3,092
Payments to suppliers and employees (1,106) (1,085) (926) (2,190) (1,876)
Cash generated from operations 585 673 715 1,259 1,216
Dividends received from equity-accounted joint ventures 20 20 14 40 44
Taxation refund - - 73 - 95
Taxation paid (143) (112) (167) (255) (207)
Net cash inflow from operating activities 462 581 635 1,044 1,148
Cash flows from investing activities
Capital expenditure (374) (312) (323) (686) (556)
Interest capitalised and paid (2) (2) - (4) -
Expenditure on intangible assets (20) (7) - (28) -
Proceeds from disposal of tangible assets 1 1 7 2 8
Other investments acquired (23) (39) (31) (62) (62)
Proceeds from disposal of investments 19 36 27 55 42
Investment in associates and equity-accounted joint ventures (66) (45) (25) (111) (49)
Proceeds from disposal of equity-accounted joint venture - 20 - 20 -
Loans advanced to associates and equity-accounted joint ventures (48) (15) (2) (63) (2)
Loans repaid by associates and equity-accounted joint ventures 1 - - 1 -
Dividends received from associate 1 - - 1 -
Proceeds from disposal of subsidiary - - - - 9
Cash in subsidiary disposed - - - - (11)
Decrease (increase) in cash restricted for use 20 (18) (18) 2 (13)
Interest received 8 10 10 18 18
Repayment of loans advanced - - 1 - 1
Net cash outflow from investing activities (483) (371) (354) (855) (615)
Cash flows from financing activities
Proceeds from issue of share capital - - - 1 1
Proceeds from borrowings 150 - 6 150 6
Repayment of borrowings (4) (4) (3) (8) (155)
Finance costs paid (57) (15) (57) (72) (75)
Acquisition of non-controlling interest (220) - - (220) -
Revolving credit facility transaction costs - (8) - (8) -
Dividends paid (61) (101) (11) (163) (54)
Net cash outflow from financing activities (192) (128) (65) (320) (277)
Net (decrease) increase in cash and cash equivalents (213) 82 216 (131) 256
Translation (16) 22 4 6 (3)
Cash and cash equivalents at beginning of period 1,216 1,112 619 1,112 586
Cash and cash equivalents at end of period 987 1,216 839 987 839
Cash generated from operations
Profit before taxation 471 689 632 1,160 1,004
Adjusted for:
Movement on non-hedge derivatives and other commodity contracts - - 2 - -
Amortisation of tangible assets 195 190 188 386 373
Finance costs and unwinding of obligations 49 49 50 98 99
Environmental, rehabilitation and other expenditure 5 (5) 35 - 35
Special items 2 2 14 3 21
Amortisation of intangible assets 1 1 1 2 1
Deferred stripping 2 (7) 6 (5) 26
Fair value adjustment on option component of convertible bonds (24) (43) (73) (67) (88)
Fair value adjustment on mandatory convertible bonds (29) (79) (64) (108) (87)
Interest received (9) (12) (11) (21) (19)
Share of equity-accounted investments' loss (profit) 6 (22) (21) (16) (32)
Other non-cash movements 27 22 14 50 22
Movements in working capital (111) (112) (58) (223) (139)
585 673 715 1,259 1,216
Movements in working capital
Increase in inventories (92) (30) (92) (122) (109)
Increase in trade and other receivables (37) (54) (15) (91) (81)
Increase (decrease) in trade and other payables 18 (28) 49 (10) 51
(111) (112) (58) (223) (139)
Rounding of figures may result in computational discrepancies.
Group statement of changes in equity
Equity holders of the parent
Share Cash Available Foreign
capital Other flow for Actuarial currency Non-
and capital Retained hedge sale (losses) translation controlling Total
US Dollar million premium reserves earnings reserve reserve gains reserve Total interests equity
Balance at 31 December 2010 6,627 194 (2,750) (2) 86 (62) (104) 3,989 124 4,113
Profit for the period 711 711 20 731
Other comprehensive loss (1) (27) (23) (51) (51)
Total comprehensive (loss) income - (1) 711 - (27) - (23) 660 20 680
Shares issued 21 21 21
Share-based payment for share awards
net of exercised 19 19 19
Dividends paid (43) (43) (43)
Dividends of subsidiaries - (5) (5)
Translation (4) 5 1 2 (2) -
Balance at 30 June 2011 6,648 208 (2,077) (2) 59 (61) (127) 4,648 137 4,785
Balance at 31 December 2011 6,689 171 (1,300) (2) 18 (78) (469) 5,029 137 5,166
Profit for the period 850 850 13 863
Other comprehensive loss (5) (9) (33) (47) (47)
Total comprehensive income (loss) - - 850 - (5) (9) (33) 803 13 816
Shares issued 22 22 22
Share-based payment for share awards
net of exercised 12 12 12
Acquisition of non-controlling interest (144) (144) (71) (215)
Dividends paid (147) (147) (147)
Dividends of subsidiaries - (17) (17)
Translation (3) 2 2 1 (1) -
Balance at 30 June 2012 6,711 180 (739) (2) 13 (85) (502) 5,576 61 5,637
Rounding of figures may result in computational discrepancies.
Segmental reporting
for the quarter and six months ended 30 June 2012
AngloGold Ashantis 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 Six months ended
Jun Mar Jun Jun Jun
2012 2012 2011 2012 2011
Reviewed Reviewed Reviewed Reviewed Reviewed
US Dollar million
Gold income
South Africa 539 524 654 1,063 1,214
Continental Africa 653 723 578 1,376 1,123
Australasia 117 115 93 232 189
Americas 390 432 344 822 647
1,700 1,793 1,669 3,493 3,173
Equity-accounted investments included above (81) (87) (93) (168) (175)
1,619 1,706 1,576 3,325 2,998
Gross profit (loss)
South Africa 205 182 264 387 474
Continental Africa 244 317 245 561 407
Australasia 25 17 (10) 42 (5)
Americas 163 234 149 397 306
Corporate and other 15 3 21 18 14
652 753 668 1,405 1,196
Equity-accounted investments included above (19) (36) (41) (55) (71)
633 717 627 1,350 1,125
Capital expenditure
South Africa 130 106 116 236 211
Continental Africa 180 122 105 302 167
Australasia 52 42 19 94 30
Americas 75 81 105 156 183
Corporate and other 14 3 1 18 3
451 354 346 806 594
Equity-accounted investments included above (54) (35) (23) (89) (38)
397 320 323 717 556
Quarter ended Six months ended
Jun Mar Jun Jun Jun
2012 2012 2011 2012 2011
Reviewed Reviewed Reviewed Reviewed Reviewed
oz (000)
Gold production
South Africa 362 306 431 668 832
Continental Africa 407 382 377 789 740
Australasia 71 68 61 139 133
Americas 233 225 216 458 419
1,073 981 1,086 2,054 2,124
As at As at As at As at
Jun Mar Dec Jun
2012 2012 2011 2011
Reviewed Reviewed Audited Reviewed
US Dollar million
Total assets
South Africa 2,234 2,301 2,148 2,373
Continental Africa 4,685 4,504 4,288 3,998
Australasia 803 753 736 568
Americas 2,652 2,612 2,501 2,252
Corporate and other 919 1,136 1,129 895
11,293 11,306 10,802 10,086
Rounding of figures may result in computational discrepancies.
Notes
for the quarter and six months ended 30 June 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 groups 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 and six month ended 30 June 2012.
2. Revenue
Quarter ended Six months ended
Jun Mar Jun Jun Jun
2012 2012 2011 2012 2011
Reviewed Reviewed Reviewed Reviewed Reviewed
US Dollar million
Gold income 1,619 1,706 1,576 3,325 2,998
By-products (note 3) 43 61 67 104 118
Royalties received (note 5) 12 16 50 28 58
Interest received 9 12 11 21 19
1,684 1,794 1,704 3,478 3,193
3. Cost of sales
Quarter ended Six months ended
Jun Mar Jun Jun Jun
2012 2012 2011 2012 2011
Reviewed Reviewed Reviewed Reviewed Reviewed
US Dollar million
Cash operating costs 815 764 733 1,580 1,464
By-products revenue (note 2) (43) (61) (67) (104) (118)
772 703 666 1,476 1,346
Royalties 44 48 47 93 87
Other cash costs 8 8 7 15 14
Total cash costs 825 759 721 1,583 1,447
Retrenchment costs 3 3 3 6 7
Rehabilitation and other non-cash costs 25 9 52 34 61
Production costs 853 771 775 1,623 1,515
Amortisation of tangible assets 195 190 188 386 373
Amortisation of intangible assets 1 1 1 2 1
Total production costs 1,049 962 964 2,011 1,889
Inventory change (63) 27 (17) (36) (16)
986 989 947 1,975 1,873
4. Other operating expenses
Quarter ended Six months ended
Jun Mar Jun Jun Jun
2012 2012 2011 2012 2011
Reviewed Reviewed Reviewed Reviewed Reviewed
US Dollar million
Pension and medical defined benefit provisions 26 5 4 31 8
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 2 4 4 13
Miscellaneous 1 1 - 2 -
29 8 8 37 21
Rounding of figures may result in computational discrepancies.
5. Special items
Quarter ended Six months ended
Jun Mar Jun Jun Jun
2012 2012 2011 2012 2011
Reviewed Reviewed Reviewed Reviewed Reviewed
US Dollar million
Indirect tax expenses and legal claims - (6) (5) (6) (10)
Impairment of tangible assets (note 8) (1) - (10) (1) (11)
Impairment reversal of intangible assets (note 8) - 10 - 10 -
Black Economic Empowerment transaction
modification costs for Izingwe (Pty) Ltd - - (7) - (7)
Impairment of other receivables - - - - (1)
(1)
Royalties received (note 2) 12 16 50 28 58
Net (loss) profit on disposal and derecognition of
land, mineral rights, tangible assets and
exploration properties (note 8) (3) (2) 3 (5) 1
Impairment of investments (note 8) - (1) (2) (1) (2)
Profit on disposal of subsidiary ISS International
Limited (note 8) - - - - 2
8 17 29 25 30
(1) The June 2011 quarter 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 Six months ended
Jun Mar Jun Jun Jun
2012 2012 2011 2012 2011
Reviewed Reviewed Reviewed Reviewed Reviewed
US Dollar million
Finance costs 36 34 37 70 72
Unwinding of obligations, accretion of convertible
bonds and other discounts 13 15 14 28 27
49 49 50 98 99
7. Taxation
Quarter ended Six months ended
Jun Mar Jun Jun Jun
2012 2012 2011 2012 2011
Reviewed Reviewed Reviewed Reviewed Reviewed
US Dollar million
South African taxation
Mining tax 31 26 - 57 -
Non-mining tax 4 - 4 5 5
Under prior year provision 1 1 7 1 8
Deferred taxation
Temporary differences 7 12 69 18 127
Change in statutory tax rate - (131) - (131) -
43 (93) 80 (49) 140
Foreign taxation
Normal taxation 94 129 52 223 104
Under (over) prior year provision 6 (1) - 5 -
Deferred taxation
Temporary differences 43 34 17 77 29
Change in statutory tax rate - 41 - 41 -
143 203 69 346 133
186 111 149 297 273
Rounding of figures may result in computational discrepancies.
8. Headline earnings
Quarter ended Six months ended
Jun Mar Jun Jun Jun
2012 2012 2011 2012 2011
Reviewed Reviewed Reviewed Reviewed Reviewed
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 287 563 470 850 711
Impairment of tangible assets (note 5) 1 - 10 1 11
Impairment reversal of intangible assets (note 5) - (10) - (10) -
Net loss (profit) on disposal and derecognition of
land, mineral rights, tangible assets and
exploration properties (note 5) 3 2 (3) 5 (1)
Impairment of investments (note 5) - 1 2 1 2
Profit on disposal of subsidiary ISS International
Limited (note 5) - - - - (2)
Net impairment (reversal) of investment in associates
and joint ventures 14 (2) 2 12 2
Special items of associates - (3) - (3) -
Taxation on items above - current portion - - 1 - 1
Taxation on items above - deferred portion 1 - (5) 1 (6)
307 551 477 858 718
Headline earnings per ordinary share (cents) (1) 79 142 124 222 186
Diluted headline earnings per ordinary share (cents) (2) 66 107 86 173 140
(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 Six months ended
Jun Mar Jun Jun Jun
2012 2012 2011 2012 2011
Reviewed Reviewed Reviewed Reviewed Reviewed
Authorised number of shares:
Ordinary shares of 25 SA cents each 600,000,000 600,000,000 600,000,000 600,000,000 600,000,000
E ordinary shares of 25 SA cents each 4,280,000 4,280,000 4,280,000 4,280,000 4,280,000
A redeemable preference shares of 50 SA cents
each 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000
B redeemable preference shares of 1 SA cent each 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000
Issued and fully paid number of shares:
Ordinary shares in issue 382,812,185 382,399,018 381,573,111 382,812,185 381,573,111
E ordinary shares in issue 2,513,952 2,563,772 3,444,060 2,513,952 3,444,060
Total ordinary shares: 385,326,137 384,962,790 385,017,171 385,326,137 385,017,171
A redeemable preference shares 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000
B redeemable preference shares 778,896 778,896 778,896 778,896 778,896
In calculating the basic and diluted number of ordinary shares outstanding for the period, the following were taken into consideration:
Ordinary shares 382,507,333 382,305,903 381,480,773 382,504,246 381,377,232
E ordinary shares 2,550,514 2,569,675 2,665,595 2,560,095 2,723,866
Fully vested options 1,799,218 1,970,339 1,435,811 1,734,133 1,517,717
Weighted average number of shares 386,857,065 386,845,917 385,582,179 386,798,474 385,618,815
Dilutive potential of share options 1,353,761 970,868 1,109,716 1,335,926 1,125,147
Dilutive potential of convertible bonds 33,524,615 33,524,615 33,524,615 33,524,615 33,524,615
Diluted number of ordinary shares 421,735,441 421,341,400 420,216,510 421,659,015 420,268,577
10. Share capital and premium
As At
Jun Mar Dec Jun
2012 2012 2011 2011
Reviewed R eviewed Audited Reviewed
US Dollar million
Balance at beginning of period 6,782 6,782 6,734 6,734
Ordinary shares issued 22 6 57 22
E ordinary shares issued and cancelled (1) - (9) (2)
Sub-total 6,803 6,788 6,782 6,754
Redeemable preference shares held within the group (53) (53) (53) (53)
Ordinary shares held within the group (17) (17) (17) (23)
E ordinary shares held within the group (22) (23) (23) (30)
Balance at end of period 6,711 6,695 6,689 6,648
Rounding of figures may result in computational discrepancies.
11. Exchange rates
Jun Mar Dec Jun
2012 2012 2011 2011
Unaudited Unaudited Unaudited Unaudited
ZAR/USD average for the year to date 7.93 7.74 7.26 6.89
ZAR/USD average for the quarter 8.12 7.74 8.09 6.78
ZAR/USD closing 8.16 7.63 8.04 6.74
AUD/USD average for the year to date 0.97 0.95 0.97 0.97
AUD/USD average for the quarter 0.99 0.95 0.99 0.94
AUD/USD closing 0.98 0.96 0.97 0.93
BRL/USD average for the year to date 1.86 1.77 1.68 1.63
BRL/USD average for the quarter 1.96 1.77 1.80 1.60
BRL/USD closing 2.02 1.83 1.87 1.56
ARS/USD average for the year to date 4.39 4.34 4.13 4.04
ARS/USD average for the quarter 4.44 4.34 4.25 4.08
ARS/USD closing 4.53 4.38 4.30 4.11
12. Capital commitments
Jun Mar Dec Jun
2012 2012 2011 2011
Reviewed Reviewed Audited Reviewed
US Dollar million
Orders placed and outstanding on capital contracts at
the prevailing rate of exchange (1) 491 370 202 403
(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 groups covenant performance indicates that existing financing
facilities will be available to meet the above commitments. To the extent that any of the financing facilities mature in
the near future, the group believes that sufficient measures are in place to ensure that these facilities can be
refinanced.
13. Contingencies
AngloGold Ashantis material contingent liabilities and assets at 30 June are detailed below:
Contingencies and guarantees
Jun Jun
2012 2011
Reviewed Reviewed
US Dollar Millions
Contingent liabilities
Groundwater pollution (1) - -
Deep groundwater pollution (2) - -
Indirect taxes Ghana (3) 18 12
ODMWA litigation (4) - -
Other tax disputes AngloGold Ashanti Brasil Mineração Ltda (5) 32 31
Sales tax on gold deliveries Mineração Serra Grande S.A. (6) 170 102
Other tax disputes Mineração Serra Grande S.A. (7) 18 11
Contingent assets
Indemnity Kinross Gold Corporation (8) (96) -
Royalty Boddington Gold Mine (9) - -
Royalty Tau Lekoa Gold Mine (10) - -
Financial Guarantees
Oro Group (Pty) Limited (11) 12 15
154 171
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. 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. 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, in South Africa, 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) Indirect taxes AngloGold Ashanti (Ghana) Limited received a tax assessment for $18m (2011: $12m) 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.
(4) 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 Mankayis 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.
(5) Other tax disputes - In November 2007, the Departamento Nacional de Produção Mineral (DNPM), a Brazilian
federal mining authority, issued a tax assessment against AngloGold Ashanti Brazil Mineração (AABM) in the
amount of $20m (2011: $24m) 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 Limiteds 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
$12m (2011: $7m).
(6) Sales tax on gold deliveries In 2006, Mineração Serra Grande S.A. (MSG), received two tax assessments from
the State of Goiás 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. The first and second
assessments are approximately $105m (2011: attributable share $63m) and $65m (2011: attributable share $39m)
respectively. In November 2006, the administrative councils second chamber ruled in favour of MSG and fully
cancelled the tax liability related to the first period. In July 2011, the administrative councils second chamber ruled
in favour of MSG and fully cancelled the tax liability related to the second period. The State of Goiás has appealed
to the full board of the State of Goiás tax administrative council. In November 2011 (first case) and June 2012
(second case), the administrative councils full board 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 first
case was already returned to the COMEX and the second case was sent in June 2012. The company believes
both assessments are in violation of federal legislation on sales taxes.
(7) Other tax disputes - 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 companys appeal against the assessment. The company
is now appealing the dismissal of the case. The assessment is approximately $18m (2011: attributable
share $11m).
(8) Indemnity - As part of the acquisition by AngloGold Ashanti of the remaining 50% interest in MSG during June
2012, Kinross Gold Corporation (Kinross) has provided an indemnity to a maximum amount of BRL255m ($126m
at 30 June 2012 exchange rates) against the specific exposures discussed in items 6 and 7 including a further
$2m in item 5 above which amounts to $96m at 30 June 2012.
(9) 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 $56m (2011: $17m) have been received to date. Royalties
of $11m (2011: $7m) were received during the quarter.
(10) 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 246,096oz produced have been received to date. Royalties of $1m
(2011: $1m) were received during the quarter.
(11) 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 $12m (2011: $15m). The
suretyship agreements have a termination notice period of 90 days.
14. Borrowings
AngloGold Ashantis 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 17 May 2012, AngloGold Ashanti announced the appointment of Mr Michael James Kirkwood to its board of
directors, with effect from 1 June 2012.
On 29 May 2012, AngloGold Ashanti, which holds, through a subsidiary, a 50% interest in the Serra Grande
("Crixás") mine in Brazil, agreed to acquire the remaining 50% stake in the mine from Kinross Gold Corporation for
$220 million in cash. The transaction was funded from existing cash reserves and debt facilities which closed on
28 June 2012.
17. Subsequent events
On 20 July 2012, AngloGold Ashanti acquired First Uranium (Pty) Ltd, the owner of Mine Waste Solutions in South
Africa, for a cash consideration of $335 million. Mine Waste Solutions is a recently commissioned tailings
retreatment operation located in South Africas Vaal River region and in the immediate proximity of AngloGold
Ashantis own tailings facilities. In connection with the acquisition, AngloGold Ashanti agreed to guarantee the
existing delivery of obligations of a wholly owned subsidiary of Mine Waste Solutions to sell to an existing customer
at a pre-agreed price, 25% of the gold produced at a gold recovery plant located in northwest South Africa, subject
to a cap of 312,500oz over the life of the contract. The acquisition is expected to provide additional uranium and
gold production. It will result in significant synergies, facilitate long-term rehabilitation of the area and secure long-
term employment opportunities in South Africa. Due to the proximity of the reporting date and the acquisition date,
the purchase price allocation has not been completed and will be completed during the third quarter of 2012.
On 20 July 2012, AngloGold Ashanti signed a new US$1bn, five-year unsecured revolving credit facility (RCF)
maturing in July 2017 with a banking syndicate. This replaces the existing four-year, US$1bn unsecured RCF
maturing in April 2014.
On 25 July 2012, AngloGold Ashanti Limited (the "Company") announced the pricing of an offering of $750m
aggregate principal amount of 5.125% notes due 2022. The notes, which will be issued by AngloGold Ashanti
Holdings plc, a wholly owned subsidiary of the Company, at an issue price of 99.398%. The Company estimates
that the net proceeds from the offering will be approximately $738m, after deducting discounts and estimated
expenses. They are unsecured and fully and unconditionally guaranteed by the Company. The transaction closed
on 30 July 2012.
18. Dividend
The salient details Dividend No. 113 for the quarter ended 31 March 2012 paid by AngloGold Ashanti Limited
(Registration Number 1944/017354/06) is shown below:
Rate of Gross Withholding Net dividend Date of
Exchange dividend tax at 15% paid Payment
declared 2012
South African cents per ordinary share - 100 15 85 8 June
UK pence per ordinary share R13.09217/£1 7.6382 1.1457 6.4925 8 June
Australian cents per CHESS Depositary Interest (CDI) R1/A$0.12260 2.452 0.368 2.084 8 June
Ghana cedi per ordinary share R1/¢0.2229 0.22290 0.033 0.18947 8 June
Ghana cedi per Ghanaian Depositary Share (GhDS) R1/¢0.2229 0.002229 0.00033 0.0018947 11 June
US cents per American Depositary Share (ADS) R8.470455/$1 11.8057 1.7709 10.0348 18 June
Each CDI represents one-fifth of an ordinary share, and 100 GhDSs represents one ordinary share. Each ADS
represents one ordinary share.
Quarter ended 31 March 2012 Dividend No. E13 of 50 South African cents (gross), or 42.5 South African cents
(net) was paid to holders of E ordinary shares on 8 June 2012, being those employees participating in the
Bokamoso ESOP and 50 South African cents (gross) was paid to Izingwe Holdings (Proprietary) Limited on the
same day.
The directors of AngloGold Ashanti Limited (Registration Number 1944/017354/06) declared Dividend No. 114 for
the quarter ended 30 June 2012 as detailed below. In terms of the withholding tax on dividends which became
effective on 1 April 2012, the following additional information is disclosed:
Dividends have been declared out of total reserves
Rate of dividend declared per ordinary share in South African cents (gross) 100
Dividends tax rate applicable to shareholders liable to pay the dividend tax 15%
STC credits utilised in South African cents Nil
Rate in South African cents (net) where dividend tax at 15% is payable 85
The ordinary and E ordinary shares in issue of AngloGold Ashanti Limited at the date of
declaration is 385,338,207
AngloGold Ashanti Limiteds tax reference number 9640006608
In compliance with the requirements of Strate, given the companys 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, 23 August
Last date to trade ordinary shares cum dividend Friday, 24 August
Last date to register transfers of certificated securities cum dividend Friday, 24 August
Ordinary shares trade ex-dividend Monday, 27 August
Record date Friday, 31 August
Payment date Friday, 14 September
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, 27 August and Friday, 31 August 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, 29 August
Record date Friday, 31 August
Approximate date for currency conversion Friday, 14 September
Approximate payment date of dividend Monday, 24 September
Assuming an exchange rate of R8.2883/$, the gross dividend payable per ADS, which is subject to a 15% South
African withholding tax, is equivalent to 12 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, 24 August
GhDSs trade ex-dividend Monday, 27 August
Record date Friday, 31 August
Approximate payment date of dividend Monday, 17 September
Assuming an exchange rate of R1/¢0.23572, the gross dividend payable per share, which is subject to a 15% South
African withholding tax, is equivalent to 0.2357 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, the directors declared Dividend No. E14 for the quarter ended 30 June 2012, of 50 South African cents
per E ordinary share, payable to employees participating in the Bokamoso ESOP, which dividend is subject to a
15% withholding tax, and 50 South African cents per E ordinary share payable to Izingwe Holdings (Proprietary)
Limited. These dividends will be paid on Friday, 14 September.
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 companys 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
3 August 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 Six months ended
Jun Mar Jun Jun Jun
2012 2012 2011 2012 2011
Unaudited Unaudited Unaudited Unaudited Unaudited
US Dollar million
Headline earnings (note 8) 307 551 477 858 718
Loss on unrealised non-hedge derivatives and other
commodity contracts - - 2 - -
Fair value adjustment on option component of convertible bonds (24) (43) (73) (67) (88)
Fair value adjustment on mandatory convertible bonds (29) (79) (64) (108) (87)
Adjusted headline earnings 253 429 342 682 544
Adjusted headline earnings per ordinary share (cents) (1) 65 111 89 176 141
(1) Calculated on the basic weighted average number of ordinary shares.
B Price received
Quarter ended Six months ended
Jun Mar Jun Jun Jun
2012 2012 2011 2012 2011
Unaudited Unaudited Unaudited Unaudited Unaudited
US Dollar million / Imperial
Gold income (note 2) 1,619 1,706 1,576 3,325 2,998
Adjusted for non-controlling interests (45) (52) (42) (97) (81)
1,574 1,654 1,534 3,228 2,917
Associates and equity accounted joint ventures' share of gold
income including realised non-hedge derivatives 81 88 94 169 176
Attributable gold income including realised non-hedge
derivatives 1,655 1,742 1,628 3,397 3,093
Attributable gold sold - oz (000) 1,030 1,029 1,078 2,059 2,132
Revenue price per unit - $/oz 1,607 1,692 1,510 1,650 1,451
Quarter ended Six months ended
Jun Mar Jun Jun Jun
2012 2012 2011 2012 2011
Unaudited Unaudited Unaudited Unaudited Unaudited
US Dollar million / Imperial
C Total costs
Total cash costs (note 3) 825 759 721 1,583 1,447
Adjusted for non-controlling interests and non-gold producing companies (23) (31) (7) (54) (50)
Associates' and equity accounted joint ventures' share of total cash costs 58 52 51 110 101
Total cash costs adjusted for non-controlling interests
and non-gold producing companies 860 780 765 1,639 1,498
Retrenchment costs (note 3) 3 3 3 6 7
Rehabilitation and other non-cash costs (note 3) 25 9 52 34 61
Amortisation of tangible assets (note 3) 195 190 188 386 373
Amortisation of intangible assets (note 3) 1 1 1 2 1
Adjusted for non-controlling interests and non-gold producing companies (11) (5) (16) (16) (22)
Associates and equity accounted joint ventures' share of production costs 2 2 2 4 4
Total production costs adjusted for non-controlling
interests and non-gold producing companies 1,075 980 995 2,055 1,922
Gold produced - oz (000) 1,073 981 1,086 2,054 2,124
Total cash cost per unit - $/oz 801 794 705 798 705
Total production cost per unit - $/oz 1,002 999 916 1,000 905
Rounding of figures may result in computational discrepancies.
Quarter ended Six months ended
Jun Mar Jun Jun Jun
2012 2012 2011 2012 2011
Unaudited Unaudited Unaudited Unaudited Unaudited
US Dollar million
D EBITDA
Operating profit 456 584 519 1,040 882
Amortisation of tangible assets (note 3) 195 190 188 386 373
Amortisation of intangible assets (note 3) 1 1 1 2 1
Impairment of tangible assets (note 5) 1 - 10 1 11
Impairment reversal of intangible assets (note 5) - (10) - (10) -
Loss on unrealised non-hedge derivatives and other commodity contracts - - 2 - -
Share of associates' EBITDA 12 32 39 43 65
Impairment of investments (note 5) - 1 2 1 2
Net loss (profit) on disposal and derecognition of assets (note 5) 3 2 (3) 5 (1)
Profit on disposal of ISS International Limited (note 5) - - - - (2)
668 800 758 1,468 1,331
E Interest cover
EBITDA (note D) 668 800 758 1,468 1,331
Finance costs (note 6) 36 34 37 70 72
Capitalised finance costs 2 2 - 4 -
38 36 37 74 72
Interest cover - times 18 22 20 20 18
As at As at As at As at
Jun Mar Dec Jun
2012 2012 2011 2011
Unaudited Unaudited Unaudited Unaudited
US Dollar million
F Net asset value - cents per share
Total equity 5,637 5,746 5,166 4,785
Mandatory convertible bonds 647 678 760 782
6,284 6,424 5,926 5,567
Number of ordinary shares in issue - million (note 9) 385 385 385 385
Net asset value - cents per share 1,631 1,669 1,540 1,446
Total equity 5,637 5,746 5,166 4,785
Mandatory convertible bonds 647 678 760 782
Intangible assets (243) (228) (210) (201)
6,041 6,196 5,716 5,366
Number of ordinary shares in issue - million (note 9) 385 385 385 385
Net tangible asset value - cents per share 1,568 1,610 1,485 1,394
G Net debt
Borrowings - long-term portion 1,847 1,705 1,698 1,670
Borrowings - short-term portion 30 51 30 28
Total borrowings (1) 1,877 1,756 1,728 1,698
Corporate office lease (33) (35) (33) (38)
Unamortised portion of the convertible and rated bonds 78 56 85 101
Cash restricted for use (56) (78) (58) (56)
Cash and cash equivalents (987) (1,216) (1,112) (839)
Net debt excluding mandatory convertible bonds 879 483 610 866
(1) Borrowings exclude the mandatory convertible bonds (note F).
Rounding of figures may result in computational discrepancies.
IMPERIAL OPERATING RESULTS Continental
South Africa Australasia Americas Total group
QUARTER ENDED JUNE 2012 Africa
UNDERGROUND OPERATION
Area mined - 000 ft2 2,474 - - - 2,474
Mined - 000 tons 1,646 427 351 599 3,022
Milled / Treated - 000 tons 1,432 509 240 707 2,888
Yield - oz/t 0.222 0.163 0.086 0.161 0.185
- g/t 7.61 5.58 2.94 5.51 6.35
Gold produced - oz (000) 318 83 21 114 535
SURFACE AND DUMP RECLAMATION
Milled / Treated - 000 tons 3,318 - - - 3,318
Yield - oz/t 0.013 - - - 0.013
- g/t 0.46 - - - 0.46
Gold produced - oz (000) 44 - - - 44
OPEN-PIT OPERATION
Volume mined - 000 bcy - 19,759 732 - 20,490
Mined - 000 tons - 38,972 1,750 6,356 47,078
Treated - 000 tons - 6,853 687 262 7,802
Stripping ratio - ratio - 4.19 2.29 22.25 4.66
Yield - oz/t - 0.047 0.073 0.174 0.053
- g/t - 1.59 2.52 5.96 1.82
Gold produced - oz (000) - 319 50 46 415
HEAP LEACH OPERATION
Mined - 000 tons - 2,405 - 18,249 20,654
Placed - 000 tons - 278 - 6,061 6,339
Stripping ratio - ratio - 20.19 - 1.97 2.30
Yield - oz/t - 0.021 - 0.013 0.013
- g/t - 0.72 - 0.44 0.45
Gold placed - oz (000) - 6 - 78 83
Gold produced - oz (000) - 6 - 73 79
PRODUCTIVITY PER EMPLOYEE
Actual - oz 5.04 11.89 46.64 18.86 8.95
TOTAL
Subsidiaries' gold produced - oz (000) 362 358 71 233 1,024
Joint ventures' gold produced - oz (000) - 49 - - 49
Attributable gold produced - oz (000) 362 407 71 233 1,073
Minority gold produced - oz (000) - 12 - 20 32
Subsidiaries' gold sold - oz (000) 336 345 73 225 980
Joint ventures' gold sold - oz (000) - 50 - - 50
Attributable gold sold - oz (000) 336 395 73 225 1,030
Minority gold sold - oz (000) - 11 - 20 31
Spot price - $/oz 1,611 1,611 1,611 1,611 1,611
Price received - $/oz sold 1,604 1,606 1,608 1,611 1,607
Total cash costs - $/oz produced 779 827 1,187 671 801
Total production costs - $/oz produced 998 987 1,286 941 1,002
Rounding of figures may result in computational discrepancies.
Less equity
FINANCIAL RESULTS Continental Corporate
South Africa Australasia Americas Sub-total accounted Total group
QUARTER ENDED JUNE 2012 $'m Africa and other
investments
Gold income 539 653 117 390 - 1,700 (81) 1,619
Cash costs (304) (347) (84) (209) 18 (926) 58 (868)
By-products revenue 22 2 - 21 - 44 - 43
Total cash costs (282) (346) (84) (189) 18 (883) 58 (825)
Retrenchment costs (2) (1) - (1) - (3) - (3)
Rehabilitation and other non-cash costs (3) (8) - (14) - (25) - (25)
Amortisation of assets (74) (58) (7) (56) (3) (198) 2 (196)
Total production costs (361) (412) (91) (260) 15 (1,109) 61 (1,049)
Inventory change 27 3 (1) 33 - 62 1 63
Cost of sales (334) (409) (92) (227) 15 (1,048) 62 (986)
Gross profit (loss) 205 244 25 163 15 652 (19) 633
Corporate and other costs (3) (2) (1) (10) (82) (97) - (98)
Exploration (1) (19) (21) (40) (7) (89) 1 (87)
Intercompany transactions - (19) (3) (1) 23 - - -
Special items (1) (3) 11 2 - 8 - 8
Operating profit (loss) 200 199 11 114 (51) 474 (18) 456
Net finance (costs) income, unwinding of
(1) (2) - 1 16 13 - 13
obligations and fair value adjustments
Exchange gain (loss) - 2 - 3 4 9 (1) 8
Share of equity accounted investments profit - - - (5) (17) (22) 16 (6)
Profit (loss) before taxation 199 199 11 112 (48) 474 (3) 471
Taxation (43) (77) (4) (64) (1) (189) 3 (186)
Profit (loss) for the period 156 123 7 48 (49) 285 - 285
Equity shareholders 156 137 7 43 (56) 287 - 287
Non-controlling interests - (15) - 6 6 (2) - (2)
Operating profit (loss) 200 199 11 114 (51) 474 (18) 456
Intercompany transactions - 19 3 1 (23) - - -
Special items 2 1 - 1 - 4 - 4
Share of associates' EBIT - - - (5) (3) (9) 18 9
EBIT 203 220 15 110 (77) 469 - 469
Amortisation of assets 74 58 7 56 3 198 (2) 196
Share of associates' amortisation - - - - - - 2 2
EBITDA 276 278 22 166 (74) 668 - 668
Profit (loss) attributable to equity shareholders 156 137 7 43 (56) 287 - 287
Special items 2 1 - 1 - 4 - 4
Share of associates' special items - - - - 13 13 - 13
Taxation on items above (1) 3 - - - 2 - 2
Headline earnings (loss) 157 141 7 43 (42) 307 - 307
Fair value adjustment on option component
- - - - (24) (24) - (24)
of convertible bonds
Fair value adjustment on mandatory
- - - - (29) (29) - (29)
convertible bonds
Adjusted headline earnings (loss) 157 141 7 43 (95) 253 - 253
Ore reserve development capital 62 12 4 17 - 95 - 95
Stay-in-business capital 35 87 5 22 14 163 (2) 162
Project capital 32 81 43 37 - 193 (53) 141
Total capital expenditure 130 180 52 75 14 451 (54) 397
Less interest capitalised (2)
Less expenditures on intangible assets (20)
Capital expenditure per statement of cash flows 374
Rounding of figures may result in computational discrepancies.
IMPERIAL OPERATING RESULTS Continental
South Africa Australasia Americas Total group
QUARTER ENDED MARCH 2012 Africa
UNDERGROUND OPERATION
Area mined - 000 ft2 1,760 - - - 1,760
Mined - 000 tons 1,218 458 267 583 2,526
Milled / Treated - 000 tons 1,096 489 278 655 2,519
Yield - oz/t 0.243 0.123 0.100 0.165 0.184
- g/t 8.33 4.23 3.42 5.67 6.30
Gold produced - oz (000) 266 60 28 108 463
SURFACE AND DUMP RECLAMATION
Milled / Treated - 000 tons 3,142 253 - - 3,395
Yield - oz/t 0.013 0.004 - - 0.012
- g/t 0.44 0.14 - - 0.41
Gold produced - oz (000) 40 1 - - 41
OPEN-PIT OPERATION
Volume mined - 000 bcy - 19,131 959 - 20,090
Mined - 000 tons - 38,186 2,293 6,107 46,586
Treated - 000 tons - 6,461 715 230 7,406
Stripping ratio - ratio - 5.39 2.98 22.75 5.84
Yield - oz/t - 0.049 0.056 0.187 0.054
- g/t - 1.67 1.93 6.42 1.84
Gold produced - oz (000) - 314 40 43 397
HEAP LEACH OPERATION
Mined - 000 tons - 2,397 - 17,741 20,139
Placed - 000 tons - 271 - 5,722 5,993
Stripping ratio - ratio - 16.73 - 2.28 2.63
Yield - oz/t - 0.023 - 0.011 0.012
- g/t - 0.79 - 0.39 0.41
Gold placed - oz (000) - 6 - 65 71
Gold produced - oz (000) - 7 - 74 81
PRODUCTIVITY PER EMPLOYEE
Actual - oz 4.38 11.03 43.01 18.81 8.27
TOTAL
Subsidiaries' gold produced - oz (000) 306 328 68 225 927
Joint ventures' gold produced - oz (000) - 54 - - 54
Attributable gold produced - oz (000) 306 382 68 225 981
Minority gold produced - oz (000) - 10 - 20 30
Subsidiaries' gold sold - oz (000) 306 367 68 237 978
Joint ventures' gold sold - oz (000) - 51 - - 51
Attributable gold sold - oz (000) 306 418 68 237 1,029
Minority gold sold - oz (000) - 11 - 22 33
Spot price - $/oz 1,691 1,691 1,691 1,691 1,691
Price received - $/oz sold 1,712 1,686 1,691 1,678 1,692
Total cash costs - $/oz produced 849 817 1,290 534 794
Total production costs - $/oz produced 1,113 979 1,412 748 999
Rounding of figures may result in computational discrepancies.
Less equity
FINANCIAL RESULTS Continental Corporate
South Africa Australasia Americas Sub-total accounted Total group
QUARTER ENDED MARCH 2012 $'m Africa and other
investments
Gold income 524 723 115 432 - 1,793 (88) 1,706
Cash costs (278) (323) (88) (189) 6 (871) 52 (819)
By-products revenue 18 2 - 41 - 61 - 61
Total cash costs (260) (321) (88) (148) 6 (811) 52 (759)
Retrenchment costs (2) - - (1) - (3) - (3)
Rehabilitation and other non-cash costs (2) (7) - (1) - (10) - (9)
Amortisation of assets (77) (56) (8) (50) (2) (193) 2 (191)
Total production costs (340) (384) (96) (199) 3 (1,016) 54 (962)
Inventory change (2) (22) (2) 1 - (24) (3) (27)
Cost of sales (342) (406) (98) (198) 3 (1,040) 51 (989)
Gross profit (loss) 182 317 17 234 3 753 (36) 717
Corporate and other costs (3) (3) - (8) (61) (76) - (75)
Exploration (1) (23) (18) (25) (10) (76) 1 (75)
Intercompany transactions - (17) (3) - 21 - - -
Special items - 6 14 - (3) 17 - 17
Operating profit (loss) 179 280 10 200 (50) 618 (35) 584
Net finance (costs) income, unwinding of
(2) (1) 1 (1) 87 85 - 85
obligations and fair value adjustments
Exchange (loss) gain - 2 - (2) (2) (2) 1 (2)
Share of equity accounted investments profit - - - (4) 4 - 22 22
Profit (loss) before taxation 177 281 11 193 39 701 (12) 689
Taxation 90 (140) (5) (70) 2 (123) 12 (111)
Profit (loss) for the period 267 141 7 123 41 578 - 578
Equity shareholders 267 136 7 113 40 563 - 563
Non-controlling interests - 5 - 10 - 15 - 15
Operating profit (loss) 179 280 10 200 (50) 618 (35) 584
Intercompany transactions - 17 3 - (21) - - -
Special items 1 (10) - - 1 (7) - (7)
Share of associates' EBIT - - - (4) (1) (4) 35 30
EBIT 180 288 13 197 (71) 607 - 607
Amortisation of assets 77 56 8 50 2 193 (2) 191
Share of associates' amortisation - - - - - - 2 2
EBITDA 257 344 22 246 (69) 800 - 800
Profit (loss) attributable to equity shareholders 267 136 7 113 40 563 - 563
Special items 1 (10) - - 1 (7) - (7)
Share of associates' special items - - - - (5) (5) - (5)
Taxation on items above - - - - - - - -
Headline earnings (loss) 268 126 7 113 37 551 - 551
Fair value adjustment on option component of
- - - - (43) (43) - (43)
convertible bonds
Fair value loss on mandatory convertible
- - - - (79) (79) - (79)
bonds
Adjusted headline earnings (loss)
268 126 7 113 (85) 429 - 429
Ore reserve development capital 58 12 5 15 - 90 - 90
Stay-in-business capital 19 63 4 13 3 102 (2) 100
Project capital 28 47 33 53 - 162 (32) 130
Total capital expenditure 106 122 42 81 3 354 (35) 320
Less interest capitalised (2)
Less expenditures on intangible assets (7)
Capital expenditure per statement of cash flows 312
Rounding of figures may result in computational discrepancies.
IMPERIAL OPERATING RESULTS Continental
South Africa Australasia Americas Total group
QUARTER ENDED JUNE 2011 Africa
UNDERGROUND OPERATION
Area mined - 000 ft2 2,962 - - - 2,962
Mined - 000 tons 1,834 486 261 571 3,152
Milled / Treated - 000 tons 1,651 541 243 550 2,983
Yield - oz/t 0.233 0.151 0.092 0.181 0.197
- g/t 7.97 5.19 3.15 6.20 6.75
Gold produced - oz (000) 384 82 22 99 587
SURFACE AND DUMP RECLAMATION
Milled / Treated - 000 tons 3,089 - - - 3,089
Yield - oz/t 0.015 - - - 0.016
- g/t 0.53 - - - 0.54
Gold produced - oz (000) 48 1 - - 49
OPEN-PIT OPERATION
Volume mined - 000 bcy - 18,444 172 - 18,616
Mined - 000 tons - 36,920 395 7,611 44,926
Treated - 000 tons - 5,872 736 260 6,867
Stripping ratio - ratio - 4.63 7.57 23.32 5.49
Yield - oz/t - 0.049 0.052 0.167 0.054
- g/t - 1.68 1.79 5.74 1.85
Gold produced - oz (000) - 288 38 43 370
HEAP LEACH OPERATION
Mined - 000 tons - 1,925 - 17,947 19,872
Placed - 000 tons - 317 - 5,980 6,298
Stripping ratio - ratio - 6.31 - 2.07 2.25
Yield - oz/t - 0.032 - 0.011 0.012
- g/t - 1.10 - 0.39 0.42
Gold placed - oz (000) - 10 - 68 78
Gold produced - oz (000) - 6 - 74 80
PRODUCTIVITY PER EMPLOYEE
Actual - oz 6.21 11.01 40.57 20.73 9.39
TOTAL
Subsidiaries' gold produced - oz (000) 431 313 61 216 1,022
Joint ventures' gold produced - oz (000) - 64 - - 64
Attributable gold produced - oz (000) 431 377 61 216 1,086
Minority gold produced - oz (000) - 12 - 18 30
Subsidiaries' gold sold - oz (000) 431 310 62 213 1,016
Joint ventures' gold sold - oz (000) - 62 - - 62
Attributable gold sold - oz (000) 431 372 62 213 1,078
Minority gold sold - oz (000) - 12 - 19 30
Spot price - $/oz 1,496 1,496 1,496 1,496 1,496
Price received - $/oz sold 1,516 1,506 1,498 1,507 1,510
Total cash costs - $/oz produced 688 705 1,595 487 705
Total production costs - $/oz produced 905 861 1,745 794 916
Rounding of figures may result in computational discrepancies.
Less equity
FINANCIAL RESULTS Continental Corporate
South Africa Australasia Americas Sub-total accounted Total group
QUARTER ENDED JUNE 2011 $'m Africa and other
investments
Gold income received 654 578 93 344 - 1,669 (94) 1,576
Cash costs (330) (277) (97) (160) 25 (839) 51 (788)
By-products revenue 33 2 - 32 1 68 - 67
Total cash costs (297) (275) (97) (129) 26 (772) 51 (721)
Retrenchment costs (2) - - (1) - (3) - (3)
Rehabilitation and other non-cash costs (2) (8) (1) (41) - (52) - (52)
Amortisation of assets (89) (52) (8) (38) (4) (191) 2 (189)
Total production costs (390) (335) (106) (208) 21 (1,017) 53 (964)
Inventory change - 1 3 15 - 18 (1) 17
Cost of sales (390) (334) (103) (193) 21 (999) 52 (947)
Unrealised non-hedge derivatives and other
- - - (3) - (2) - (2)
commodity contracts
Gross profit (loss) 264 245 (10) 149 21 668 (41) 627
Corporate and other costs (3) (4) - (10) (57) (74) - (74)
Exploration - (13) (12) (30) (10) (64) 1 (63)
Intercompany transactions - (11) - (1) 12 - - -
Special items (7) 30 16 1 (11) 29 - 29
Operating profit (loss) 253 246 (6) 109 (44) 559 (40) 519
Net finance (costs) income, unwinding of
(1) (2) - (1) 101 97 - 98
obligations and fair value adjustments
Exchange gain (loss) - (4) - (2) (1) (6) 1 (6)
Share of equity accounted investments profit - - - (3) (3) (5) 26 21
Profit (loss) before taxation 252 241 (6) 104 54 645 (13) 632
Taxation (79) (71) 1 (12) (2) (162) 13 (149)
Profit (loss) for the period 174 171 (5) 92 52 483 - 483
Equity shareholders 174 166 (5) 92 43 470 - 470
Non-controlling interests - 4 - - 9 13 - 13
Operating profit (loss) 253 246 (6) 109 (44) 559 (40) 519
Unrealised non-hedge derivatives and other
- - - 3 - 2 - 2
commodity contracts
Intercompany transactions - 11 - 1 (12) - - -
Special items 8 1 (3) (1) 4 9 - 9
Share of associates' EBIT - - - (3) - (3) 40 37
EBIT 261 258 (9) 109 (52) 567 - 567
Amortisation of assets 89 52 8 38 4 191 (2) 189
Share of associates' amortisation - - - - - - 2 2
EBITDA 350 310 (1) 147 (48) 758 - 758
Profit (loss) attributable to equity shareholders 174 166 (5) 92 43 470 - 470
Special items 8 1 (3) (1) 4 9 - 9
Share of associates' special items - - - - 2 2 - 2
Taxation on items above (5) - 1 - - (4) - (4)
Headline earnings (loss) 177 167 (7) 91 50 477 - 477
Unrealised non-hedge derivatives and other
- - - 3 - 2 - 2
commodity contracts
Fair value adjustment on option component
- - - - (73) (73) - (73)
of convertible bonds
Fair value loss on mandatory convertible
- - - - (64) (64) - (64)
bonds
Adjusted headline earnings (loss) 177 167 (7) 93 (88) 342 - 342
Ore reserve development capital 68 12 1 17 - 98 - 98
Stay-in-business capital 29 63 2 27 1 122 (1) 121
Project capital 19 30 16 61 - 126 (22) 104
Total capital expenditure 116 105 19 105 1 346 (23) 323
Less interest capitalised -
Less expenditures on intangible assets -
Capital expenditure per statement of cash flows 323
Rounding of figures may result in computational discrepancies.
IMPERIAL OPERATING RESULTS Continental
South Africa Australasia Americas Total group
SIX MONTHS ENDED JUNE 2012 Africa
UNDERGROUND OPERATION
Area mined - 000 ft2 4,234 - - - 4,234
Mined - 000 tons 2,864 886 617 1,182 5,548
Milled / Treated - 000 tons 2,528 999 518 1,362 5,406
Yield - oz/t 0.231 0.143 0.093 0.163 0.185
Gold produced - oz (000) 584 143 48 222 997
SURFACE AND DUMP RECLAMATION
Milled / Treated - 000 tons 6,460 253 - - 6,713
Yield - oz/t 0.013 0.004 - - 0.013
Gold produced - oz (000) 84 1 - - 85
OPEN-PIT OPERATION
Volume mined - 000 bcy - 38,889 1,691 - 40,580
Mined - 000 tons - 77,158 4,044 12,462 93,664
Treated - 000 tons - 13,315 1,401 493 15,209
Stripping ratio - ratio - 4.72 2.65 22.49 5.19
Yield - oz/t - 0.048 0.065 0.180 0.053
Gold produced - oz (000) - 633 91 89 812
HEAP LEACH OPERATION
Mined - 000 tons - 4,802 - 35,990 40,793
Placed - 000 tons - 549 - 11,783 12,332
Stripping ratio - ratio - 18.31 - 2.12 2.46
Yield - oz/t - 0.022 - 0.012 0.013
Gold placed - oz (000) - 12 - 143 155
Gold produced - oz (000) - 12 - 147 160
PRODUCTIVITY PER EMPLOYEE
Actual - oz 4.71 11.46 44.79 18.84 8.61
TOTAL
Subsidiaries' gold produced - oz (000) 668 686 139 458 1,951
Joint ventures' gold produced - oz (000) - 103 - - 103
Attributable gold produced - oz (000) 668 789 139 458 2,054
Minority gold produced - oz (000) - 22 - 40 61
Subsidiaries' gold sold - oz (000) 642 711 141 462 1,957
Joint ventures' gold sold - oz (000) - 102 - - 102
Attributable gold sold - oz (000) 642 813 141 462 2,059
Minority gold sold - oz (000) - 22 - 42 63
Spot price - $/oz 1,651 1,651 1,651 1,651 1,651
Price received - $/oz sold 1,656 1,647 1,648 1,645 1,650
Total cash costs - $/oz produced 811 822 1,237 604 798
Total production costs - $/oz produced 1,050 983 1,348 846 1,000
Rounding of figures may result in computational discrepancies.
Less equity
FINANCIAL RESULTS - Continental Corporate
South Africa Australasia Americas Sub-total accounted Total group
SIX MONTHS ENDED JUNE 2012 $'m Africa and other
investments
Gold income 1,063 1,376 232 822 - 3,493 (168) 3,325
Cash costs (581) (670) (172) (398) 24 (1,798) 110 (1,687)
By-products revenue 40 3 - 61 - 104 - 104
Total cash costs (542) (666) (172) (337) 23 (1,693) 110 (1,583)
Retrenchment costs (4) (1) - (2) - (6) - (6)
Rehabilitation and other non-cash costs (5) (14) - (15) - (35) - (34)
Amortisation of assets (151) (115) (15) (106) (5) (392) 4 (388)
Total production costs (702) (796) (187) (459) 18 (2,126) 115 (2,011)
Inventory change 25 (19) (3) 34 - 38 (2) 36
Cost of sales (676) (815) (190) (425) 18 (2,088) 113 (1,975)
Gross profit (loss) 387 561 42 397 18 1,405 (55) 1,350
Corporate and other costs (5) (5) (1) (19) (143) (173) - (173)
Exploration (2) (42) (38) (65) (17) (165) 2 (163)
Intercompany transactions - (37) (6) (1) 44 - - -
Special items (1) 3 25 2 (3) 25 - 25
Operating profit (loss) 379 479 22 313 (101) 1,092 (53) 1,040
Net finance (costs) income, unwinding of
(3) (3) 1 (1) 103 98 - 98
obligations and fair value adjustments
Exchange (loss) gain - 4 - 1 1 6 - 6
Share of equity accounted investments profit - - - (9) (13) (22) 37 16
Profit (loss) before taxation 376 480 23 305 (9) 1,175 (15) 1,160
Taxation 47 (217) (9) (134) 1 (312) 15 (297)
Profit (loss) for the period 423 263 14 171 (8) 863 - 863
Equity shareholders 423 273 14 155 (15) 850 - 850
Non-controlling interests - (10) - 16 7 13 - 13
Operating profit (loss) 379 479 22 313 (101) 1,092 (53) 1,040
Intercompany transactions - 37 6 1 (44) - - -
Special items 4 (9) - 1 1 (3) - (3)
Share of associates' EBIT - - - (9) (4) (13) 53 40
EBIT 383 507 28 306 (148) 1,076 - 1,076
Amortisation of assets 151 115 15 106 5 392 (4) 387
Share of associates' amortisation - - - - - - 4 4
EBITDA 533 622 43 412 (143) 1,468 - 1,468
Profit (loss) attributable to equity shareholders 423 273 14 155 (15) 850 - 850
Special items 4 (9) - 1 1 (3) - (3)
Share of associates' special items - - - - 9 9 - 9
Taxation on items above (1) 3 - - - 1 - 1
Headline earnings (loss) 425 267 14 156 (5) 858 - 858
Fair value adjustment on option component
- - - - (67) (67) - (67)
of convertible bonds
Fair value loss on mandatory convertible
- - - - (108) (108) - (108)
bonds
Adjusted headline earnings (loss)
425 267 14 156 (181) 682 - 682
Ore reserve development capital 120 24 9 32 - 185 - 185
Stay-in-business capital 55 150 9 35 18 266 (4) 262
Project capital 60 128 77 90 - 355 (85) 270
Total capital expenditure 236 302 94 156 18 806 (89) 717
Less interest capitalised (4)
Less expenditures on intangible assets (28)
Capital expenditure per statement of cash flows 686
Rounding of figures may result in computational discrepancies.
IMPERIAL OPERATING RESULTS Continental
South Africa Australasia Americas Total group
SIX MONTHS ENDED JUNE 2011 Africa
UNDERGROUND OPERATION
Area mined - 000 ft2 5,660 - - - 5,660
Mined - 000 tons 3,552 977 488 1,085 6,102
Milled / Treated - 000 tons 3,183 1,084 508 1,089 5,864
Yield - oz/t 0.231 0.139 0.124 0.187 0.197
- g/t 7.93 4.78 4.27 6.40 6.75
Gold produced - oz (000) 737 151 63 203 1,154
SURFACE AND DUMP RECLAMATION
Milled / Treated - 000 tons 6,049 - - - 6,049
Yield - oz/t 0.016 - - - 0.016
- g/t 0.54 - - - 0.55
Gold produced - oz (000) 95 2 - - 98
OPEN-PIT OPERATION
Volume mined - 000 bcy - 34,896 1,617 - 36,514
Mined - 000 tons - 69,621 3,785 14,844 88,250
Treated - 000 tons - 12,052 1,382 504 13,937
Stripping ratio - ratio - 4.05 6.26 23.85 4.92
Yield - oz/t - 0.048 0.050 0.162 0.052
- g/t - 1.63 1.73 5.56 1.78
Gold produced - oz (000) - 573 70 82 725
HEAP LEACH OPERATION
Mined - 000 tons - 3,565 - 35,228 38,793
Placed - 000 tons - 621 - 11,729 12,350
Stripping ratio - ratio - 6.23 - 2.07 2.24
Yield - oz/t - 0.030 - 0.011 0.012
- g/t - 1.04 - 0.39 0.42
Gold placed - oz (000) - 19 - 132 151
Gold produced - oz (000) - 14 - 134 148
PRODUCTIVITY PER EMPLOYEE
Actual - oz 6.01 10.92 40.57 20.40 9.23
TOTAL
Subsidiaries' gold produced - oz (000) 832 617 133 419 2,001
Joint ventures' gold produced - oz (000) - 123 - - 123
Attributable gold produced - oz (000) 832 740 133 419 2,124
Minority gold produced - oz (000) - 23 - 38 62
Subsidiaries' gold sold - oz (000) 832 632 132 415 2,011
Joint ventures' gold sold - oz (000) - 121 - - 121
Attributable gold sold - oz (000) 832 753 132 415 2,132
Minority gold sold - oz (000) - 24 - 37 61
Spot price - $/oz 1,441 1,441 1,441 1,441 1,441
Price received - $/oz sold 1,458 1,446 1,439 1,448 1,451
Total cash costs - $/oz produced 663 761 1,355 484 705
Total production costs - $/oz produced 889 912 1,505 725 905
Rounding of figures may result in computational discrepancies.
Less equity
FINANCIAL RESULTS - Continental Corporate
South Africa Australasia Americas Sub-total accounted Total group
SIX MONTHS ENDED JUNE 2011 $'m Africa and other
investments
Gold income received 1,214 1,123 189 647 - 3,173 (176) 2,998
Cash costs (612) (584) (181) (310) 20 (1,666) 101 (1,565)
By-products revenue 60 3 1 54 1 119 - 118
Total cash costs (552) (580) (180) (256) 21 (1,548) 101 (1,447)
Retrenchment costs (5) - - (2) - (7) - (7)
Rehabilitation and other non-cash costs (4) (16) (1) (41) - (62) - (61)
Amortisation of assets (178) (98) (19) (77) (6) (379) 4 (374)
Total production costs (739) (694) (200) (377) 14 (1,995) 106 (1,889)
Inventory change (1) (23) 6 36 - 18 (2) 16
Cost of sales (740) (717) (194) (340) 14 (1,976) 104 (1,873)
Unrealised non-hedge derivatives and other
- - - (1) - - - -
commodity contracts
Gross profit (loss) 474 407 (5) 306 14 1,196 (71) 1,125
Corporate and other costs (5) (7) (2) (24) (115) (153) - (153)
Exploration - (33) (23) (49) (18) (122) 2 (120)
Intercompany transactions - (23) - (1) 24 - - -
Special items (8) 23 23 1 (10) 30 - 30
Operating profit (loss) 460 367 (6) 234 (103) 952 (70) 882
Net finance (costs) income, unwinding of
(2) (3) - (1) 100 94 1 95
obligations and fair value adjustments
Exchange gain (loss) - (7) - (1) - (8) 3 (5)
Share of equity accounted investments
- - - (7) (5) (12) 44 32
profit (loss)
Profit (loss) before taxation 458 357 (6) 225 (9) 1,026 (22) 1,004
Taxation (133) (113) - (41) (8) (295) 22 (273)
Profit (loss) for the period 325 245 (6) 184 (17) 731 - 731
Equity shareholders 325 235 (6) 179 (21) 711 - 711
Non-controlling interests - 10 - 5 5 20 - 20
Operating profit (loss) 460 367 (6) 234 (103) 952 (70) 882
Unrealised non-hedge derivatives and other
- - - 1 - - - -
commodity contracts
Intercompany transactions - 23 - 1 (24) - - -
Special items 9 2 (3) (1) 3 9 - 9
associates
Share of associates' EBIT - - - (7) (3) (9) 70 61
EBIT 469 392 (9) 228 (127) 953 - 953
Amortisation of assets 178 98 19 77 6 379 (4) 374
Share of associates' amortisation - - - - - - 4 4
EBITDA 648 490 10 305 (121) 1,331 - 1,331
Profit (loss) attributable to equity shareholders 325 235 (6) 179 (21) 711 - 711
Special items 9 2 (3) (1) 3 9 - 9
Share of associates' special items - - - - 2 2 - 2
Taxation on items above (5) - 1 - - (5) - (5)
Headline earnings (loss) 328 237 (8) 178 (17) 718 - 718
Unrealised non-hedge derivatives and
- - - 1 - - - -
other commodity contracts
Fair value adjustment on option component
- - - - (88) (88) - (88)
of convertible bond
Adjusted headline earnings (loss)
328 237 (8) 178 (191) 544 - 544
Ore reserve development capital 133 24 5 31 - 193 - 193
Stay-in-business capital 43 95 4 42 3 187 (2) 185
Project capital 35 47 21 111 - 215 (36) 179
Total capital expenditure 211 167 30 183 3 594 (38) 556
Less interest capitalised -
Less expenditures on intangible assets -
Capital expenditure per statement of cash flows 556
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 (South Africa) (Pty) Ltd
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 ^
M J Kirkwood*
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: +1 212 858 7701
Mobile: +1 646 338 4337
E-mail: sbailey@AngloGoldAshanti.com
Sabrina Brockman
Telephone: +1 212 858 7702
Mobile: +1 646 379 2555
E-mail: sbrockman@AngloGoldAshantiNA.com
General E-mail enquiries
investors@AngloGoldAshanti.com
AngloGold Ashanti website
http://www.AngloGoldAshanti.com
Company secretarial E-mail
Companysecretary@AngloGoldAshanti.com
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.com\shareowner
Global BuyDIRECTSM
BoNY maintains a direct share purchase
and dividend reinvestment plan for
ANGLOGOLD ASHANTI.
Telephone: +1-888-BNY-ADRS
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.
PUBLISHED BY ANGLOGOLD ASHANTI
Date: 06/08/2012 07:55:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
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