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ANGLO AMERICAN SA FINANCE LTD - Financial Statements

Release Date: 27/09/2012 15:15
Code(s): AA03 AA05 AA02 AA04     PDF:  
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Financial Statements

ANGLO AMERICAN SA FINANCE LIMITED
(Incorporated in the Republic of South Africa)




Company Registration number 2003/015144/06




Interim Report

For the six months ended 30 June 2012




A member of the Anglo American plc group
                                                Anglo American SA Finance Limited

Contents



Company information                                                      2
Directors? approval of the interim report                                3
Balance sheet                                                            4
Income statement                                                         5
Statement of comprehensive income                                        5
Statement of changes in equity                                           5
Cash flow statement                                                      6
Notes to the financial statements                                      7 – 14




                                            1
                                                                        Anglo American SA Finance Limited
Company information


Directors

S. Mayet
G.G. Gomwe
N.J. Mason-Gordon
N.B. Mbazima                                        Resigned 31 August 2012
C. Goosen
J.G. Williams
K.T. Kweyama                                        Appointed 1 September 2012




Company secretary

Anglo Operations Limited




Administrative and technical advisers and secretaries

Anglo Operations Limited
Physical address:                                   Postal address:
44 Main Street                                      P.O. Box 61587
Johannesburg                                        Marshalltown
2001                                                2107




Registered office

44 Main Street
Johannesburg
2001




Preparation of Interim Report

The Interim Report was prepared under the supervision of Saleh Mayet CA (SA).




                                                         2
                                                                       Anglo American SA Finance Limited
Directors’ approval of the interim report
For the six months ended 30 June 2012

The interim financial statements were approved by the Board of Directors on 21 September 2012 and are signed on its
behalf by:




                                           S. Mayet                                            G.G. Gomwe
                                             Director                                               Director




JOHANNESBURG
21 September 2012




                                                        3
                                                                      Anglo American SA Finance Limited
Balance sheet
at 30 June 2012

                                                   6 months ended         6 months ended      Year ended
Rand                                        Note          30.06.12              30.06.11        31.12.11

Deferred tax asset                           2           28 720 526           39 648 252      49 192 780

External loans                               3          906 708 401        1 538 780 366    1 501 946 953

Loans to group companies                     4      12 819 833 824         8 782 835 810    9 302 354 675

Other financial assets (derivatives)        15          237 609 583          126 878 253     187 141 279

Total non-current assets                            13 992 872 334        10 488 142 681   11 040 635 687

Trade and other receivables                              34 526 115           86 100 123      71 711 699

Loans to group companies                     4       7 895 259 440         5 812 934 416    5 009 697 222

Amounts due by group companies                          262 883 837          227 595 044     238 012 181

Other financial assets (derivatives)        15           98 069 070           46 149 822     107 113 685

Cash and cash equivalents                           15 155 563 302        23 538 940 176   21 129 355 112

Total current assets                                23 446 301 764        29 711 719 581   26 555 889 899
Total assets                                        37 439 174 098        40 199 862 262   37 596 525 586

Short term borrowings                        5                  -            170 000 000     170 000 000

Trade and other payables                                125 586 901           83 713 781      64 340 670

Current tax liability                                    57 963 881           12 439 583      14 083 149

Deposits from group companies                6      28 824 885 832        33 477 880 326   30 601 096 112

Amounts due to group companies                            9 311 211           21 435 886      24 081 376

Other financial liabilities (derivatives)   15           98 069 070           46 149 822     107 113 685

Total current liabilities                           29 115 816 895        33 811 619 398   30 980 714 992
Long term borrowings                         5       7 937 006 001         5 884 725 452    5 922 786 142
Total non-current liabilities                        7 937 006 001         5 884 725 452    5 922 786 142
Total liabilities                                   37 052 822 896        39 696 344 850   36 903 501 134
Net assets                                              386 351 202          503 517 412     693 024 452


Equity

Share capital and share premium              7       2 910 000 000           210 000 000     210 000 000

Accumulated profit                                  (2 523 648 798)          293 517 412     483 024 452

Equity attributable to equity
                                                        386 351 202          503 517 412     693 024 452
shareholder of the Company




                                                    4
                                                                         Anglo American SA Finance Limited
Income statement
for the six months ended 30 June 2012

                                                    6 months ended          6 months ended         Year ended
Rand                                      Note             30.06.12               30.06.11           31.12.11

Interest income                            8          1 475 763 231           1 442 335 387     2 979 259 243

Commitment fee income                                        735 259              7 224 884        14 142 478

Interest expense                           9         (1 152 208 068)          (1 101 447 122)   (2 341 047 343)

Commitment and guarantee fees
                                                          (35 846 474)          (32 393 048)      (65 797 795)
expense

Net interest income                                     288 443 948             315 720 101       586 556 583

Currency loss                                                  (6 541)               (30 592)        (545 138)

Impairment of intercompany loan            4         (3 213 116 418)                       -                 -

Fair value hedge adjustment                                4 904 586              2 601 506         4 006 278

Corporate activity costs                                   (6 615 372)            (6 038 906)     (13 258 712)

(Loss) \ profit before taxation           10         (2 926 389 797)            312 252 109       576 759 011

Income tax expense                        11              (80 283 453)          (86 420 472)     (161 420 334)

(Loss) \ profit for the period                       (3 006 673 250)            225 831 637       415 338 677



Statement of comprehensive income
for the six months ended 30 June 2012
                                                    6 months ended          6 months ended         Year ended
Rand
                                                           30.06.12               30.06.11           31.12.11

(Loss) \ profit for the year                         (3 006 673 250)            225 831 637       415 338 677


Total comprehensive income for the year              (3 006 673 250)            225 831 637       415 338 677



Statement of changes in equity
for the six months ended 30 June 2012

Rand                                Share capital    Share premium        Accumulated profit             Total
Balance at 1 January 2011                  10 100       209 989 900             467 686 175       677 686 175

Profit for the period                                                           225 831 637       225 831 637

Dividends paid                                                                 (400 000 000)     (400 000 000)

Balance at 30 June 2011                    10 100       209 989 900             293 517 412       503 517 412

Profit for the period                                                           189 507 040       189 507 040

Balance at 31 December 2011                10 100       209 989 900             483 024 452       693 024 452

Loss for the period                                                           (3 006 673 250)   (3 006 673 250)

Issue of share capital                     10 000     2 699 990 000                             2 700 000 000

Balance at 30 June 2012                    20 100     2 909 979 900           (2 523 648 798)     386 351 202




                                                      5
                                                                      Anglo American SA Finance Limited
Cash flow statement
for the six months ended 30 June 2012

                                                 6 months ended          6 months ended        Year ended
Rand                                      Note          30.06.12               30.06.11          31.12.11
Cash flows from operating activities

Cash inflow \ (outflow) from operations                56 705 227           (54 427 103)       (93 118 757)
                                          12

Income tax paid                           13           (15 930 467)         (65 958 710)     (148 859 534)

Net cash inflow \ (outflow) used in
                                                       40 774 760          (120 385 813)      (241 978 291)
operating activities


Cash flows from investing activities

Interest received                                  1 450 891 574          1 447 517 143      2 974 023 863

Decrease in external loans                           595 238 552             37 171 848        74 005 261
(Increase) \ decrease in loans to group
                                                  (9 616 164 326)            80 840 539       364 044 322
companies

Net cash (outflow) \ inflow from
                                                  (7 570 034 200)         1 565 529 530      3 412 073 446
investing activities



Cash flows from financing activities

Interest paid                                     (1 188 085 216)         (1 107 208 565)   (2 364 853 754)

Dividends paid to shareholders                                   -         (400 000 400)      (400 000 400)

Increase \ (decrease) in long term
borrowings                                         2 035 326 844            (71 433 557)      (182 682 410)
Increase \ decrease) in short term
borrowings                                          (170 000 000)                      -      170 000 000
Proceeds from issue of share capital               2 700 000 000                       -                 -
(Increase) \ decrease in net financial
assets (derivatives)                                   (45 563 718)          70 132 183        11 273 937

(Decrease) \ increase in deposits from
group companies                                   (1 776 210 280)         8 861 303 462      5 984 519 248
Net cash inflow from financing
                                                   1 555 467 630          7 352 793 123      3 218 256 621
activities

Net (decrease) \ increase in cash and
                                                  (5 973 791 810)         8 797 936 840      6 388 351 776
cash equivalents

Cash and cash equivalents at start of
                                                  21 129 355 112         14 741 003 336     14 741 003 336
period

Cash and cash equivalents at end of
                                                  15 155 563 302         23 538 940 176     21 129 355 112
period




                                                   6
                                                                              Anglo American SA Finance Limited
Notes to the financial statements
30 June 2012


1.   Accounting policies
     These interim financial statements („the interim financial statements?) are for the six months ended 30 June 2012 and
     have been prepared in accordance with IFRS including International Accounting Standard (IAS) 34, Interim Financial
     Reporting. The interim financial statements have been prepared under the historical cost convention as modified by the
     revaluation of certain financial instruments .

2.   Deferred tax asset
                                                       6 months ended            6 months ended           Year ended
     Rand                                                     30.06.12                 30.06.11             31.12.11
     At 1 January                                              49 192 780            55 012 890           55 012 890
     Charge to income statement                                (20 472 254)          (15 364 638)          (5 820 110)
     At 30 June                                                28 720 526            39 648 252           49 192 780

     Deferred taxation comprises the following:

     Rand                                                        30.06.12                  30.06.11         31.12.11
     Fair value adjustment                                     17 088 399            29 535 397           23 742 069
     Derivatives                                               12 554 119            10 962 382           26 207 226
     Other temporary differences                                 (921 992)                 (849 527)        (756 515)
                                                               28 720 526            39 648 252           49 192 780


     The current expectation regarding the maturity of the deferred taxation balance is:

                                                        6 months ended           6 months ended           Year ended
     Rand                                                      30.06.12                30.06.11             31.12.11
     Recoverable within 12 months                              13 830 998             9 451 036           25 212 218
     Recoverable after 12 months                               14 889 528            30 197 216           23 980 562
                                                               28 720 526            39 648 252           49 192 780


3.   External loans
                                                        6 months ended           6 months ended           Year ended
     Rand                                                      30.06.12                30.06.11             31.12.11
     Main Street 333 Proprietary Limited                    873 991 914             895 404 421          897 899 057
     Exxaro Resources Limited                                            -          613 920 150          572 992 140
     Pamodzi Coal Proprietary Limited                          32 716 487            29 455 795           31 055 756
     At 30 June                                             906 708 401           1 538 780 366        1 501 946 953


     The loans are unsecured and bear interest based on variable market benchmark rates. The interest is calculated
     monthly and is payable according to the specific terms of the loans. The loan to Main Street 333 Proprietary Limited is
     repayable by the end of 2013. The loan to Pamodzi Coal Proprietary Limited has no fixed terms of repayment and is
     secured by shares in Anglo American Inyosi Coal Proprietary Limited.




                                                           7
                                                                           Anglo American SA Finance Limited
Notes to the financial statements (continued)
30 June 2012

4.   Loans to group companies
                                                       6 months ended             6 months ended             Year ended
     Rand                                                     30.06.12                  30.06.11               31.12.11
     Long-term


     Fellow subsidiary companies


     Anglo Platinum Management Services
     Proprietary Limited                                  6 100 000 000                         -                     -
     Scaw South Africa Proprietary Limited                4 419 973 192             3 353 604 266         3 634 592 840

     Anglo American Inyosi Coal Proprietary
     Limited                                              5 512 977 050             5 429 231 544         5 667 761 835

                                                         16 032 950 242             8 782 835 810         9 302 354 675

     Impairment against loan to Scaw South
     Africa Proprietary Limited                          (3 213 116 418)                          -                     -
                                                         12 819 833 824             8 782 835 810         9 302 354 675

     Short-term

     Fellow subsidiary companies

     Anglo Platinum Management Services
     Proprietary Limited                                  2 500 000 000             5 800 131 000         4 996 524 000
     Anglo Operations Limited – Coal Division             5 380 482 316                         -                     -
     Other companies                                         14 777 124                12 803 416            13 173 222
                                                          7 895 259 440             5 812 934 416         5 009 697 222
                                                         20 715 093 264           14 595 770 226         14 312 051 897


     The long term loan to Anglo Platinum Management Services Proprietary Limited is unsecured and bears interest
     at a variable rate based on JIBAR. Interest is calculated monthly and payable according to the terms of the
     drawing. The loan has been provided under a facility maturing in 2015. The short term loan is unsecured and
     bears interest at a market related interest rate. The loan has been provided under an uncommitted facility. Interest
     is calculated monthly and payable according to the terms of the drawing.

     The loan to Scaw South Africa Proprietary Limited is unsecured and bears interest at a variable rate based on
     JIBAR. Interest is calculated monthly and payable on a six monthly basis. The loan is repayable in 2017.

     The loan to Anglo American Inyosi Coal Proprietary Limited is unsecured and bears interest at a market rate
     based on JIBAR. The interest is calculated monthly and payable on a six month basis. The loan has been
     provided under a project financing facility maturing in 2018.

     The loans to fellow subsidiary companies are unsecured and bear interest at a variable rate based on the
     weighted average rate of the Company?s external borrowings. The interest is calculated and payable monthly. The
     loans have no fixed repayment terms but will become repayable should the committed and uncommitted facilities
     become repayable (refer note 5).

     Detailed risk profiles of the above companies are disclosed in their individual financial statement. Other than the
     impairment of the loan to Scaw South Africa Proprietary Limited, the Directors are of the opinion that there is no
     reason to doubt the recoverability of these loans since there are no impairment indicators.




                                                           8
                                                                              Anglo American SA Finance Limited
Notes to the financial statements (continued)
30 June 2012


5.   External borrowings
                                                               6 months ended      6 months ended     Year ended
     Rand                                                             30.06.12           30.06.11       31.12.11
     Long-term
     Floating rate notes with a weighted average
     maturity of 4.5 years (30 June 2011: 4.7 years, 31
     December 2011: 4.2 years). Interest is payable at
     a weighted average rate of 3 month JIBAR plus
     1.16% (30 June 2011: 0.5%, 31 December 2011:
     0.5%).                                                         798 629 915       199 494 329     199 651 423
     Fixed rate bonds with a weighted average maturity
     of 5.1 years (30 June 2011: 3.9 years, 31
     December 2011: 3.4 years). Interest is payable
     semi annually at a weighted average rate of 9.48%
     (30 June 2011: 9.77%, 31 December 2011:
     9.77%).                                                       2 514 678 054      997 471 646   1 056 283 874
     Term loan maturing in 2013 at an effective interest
     rate of 9.44% per annum.                                      3 023 698 032    3 087 759 477   3 066 850 845
     Bank loans drawn under long term committed
     facilities of R8.7 billion (30 June 2011: R8.7 billion,
     31 December 2011: R8.7 billion) with interest
     payable at a weighted average rate of JIBAR plus
     1.41% (30 June 2011: 1.44%, 31 December 2011:
     1.44%) per annum for the relative interest period.            1 600 000 000    1 600 000 000   1 600 000 000


                                                                   7 937 006 001    5 884 725 452   5 922 786 142
     Short-term
     Bank loans drawn under short term committed
     facilities of R9.8 billion (30 June 2011: 10.0 billion,
     31 December 2011: R10.0 billion) with interest
     payable at a weighted average rate of JIBAR plus
     0.70% (30 June 2011: 0.82%, 31 December 2011:
     0.79%) per annum for the relative interest period.                        -      170 000 000     170 000 000


                                                                               -      170 000 000     170 000 000
                                                                   7 937 006 001    6 054 725 452   6 092 786 141
     Committed facilities
     The maturity and interest rate profiles for drawings
     under facilities are as follows:
     Long-term committed facilities
     Weighted average maturity                                         1.7 years        2.7 years       2.2 years
     Weighted average interest rate per annum                             8.45%            8.43%           8.43%
     Short-term committed facilities
     Weighted average maturity                                                 -        0.7 years       0.2 years
     Weighted average interest rate per annum                                  -           8.08%           8.08%




                                                               9
                                                                          Anglo American SA Finance Limited
Notes to the financial statements (continued)
30 June 2012

5.   External borrowings (continued)
     Facilities

     The above facilities have been arranged with a number of financial institutions. The use of these facilities may
     give rise to interest rate risk due to changes in the market rates.

     Commitment fees

     Commitment fees are payable to financial institutions based on the undrawn amount on committed facilities. The
     commitment fees are due and payable annually in November of each year.

     Guarantees

     Anglo American plc (“AA plc”) has guaranteed the Company?s due and punctual observance and performance of
     all the terms, conditions and covenants under the Company?s Domestic Medium Term Note programme (“the
     programme”) and certain facilities with external parties.

     In consideration for this guarantee, AA plc charges the Company a guarantee fee which amounts to 0.30% of the
     average value issued by the Company under the programme for each quarter of a calendar year (or any part
     thereof).

     Anglo American South Africa Limited (“AASA”) has guaranteed the Company?s due and punctual observance and
     performance of all the terms, conditions and covenants under various facilities/loan agreements with external
     parties.

     In consideration for this guarantee, AASA charges the Company a guarantee fee which amounts to 0.25% of the
     average value of the amounts advanced to the Company and owing by the Company under such agreement for
     each quarter of a calendar year (or any part thereof).

     The guarantee fees are due and payable to AASA and AA plc quarterly.


6.   Deposits from group companies
                                                      6 months ended          6 months ended             Year ended
     Rand                                                    30.06.12               30.06.11               31.12.11
     Holding company
     Anglo American South Africa Limited                19 872 618 551        26 807 540 922         24 754 898 993


     Fellow subsidiary companies
     Term deposits                                            9 155 546           504 621 703         2 009 683 089

     Call deposits                                       8 943 111 735          6 165 717 701         3 836 514 030
                                                         8 952 267 281          6 670 339 404         5 846 197 119
                                                        28 824 885 832        33 477 880 326         30 601 096 112


     At 30 June 2012 the rate of interest paid on these deposits ranged between 5.30% and 5.72%
     (30 June 2011: 4.90% and 5.90%; 31 December 2011: 5.15% and 6.20%) per annum.




                                                         10
                                                                            Anglo American SA Finance Limited
Notes to the financial statements (continued)
30 June 2012


7.   Share capital and share premium
                       Number of                             Number of                      Number of
                          shares                  Rand          shares              Rand       shares           Rand
                         30.06.12              30.06.12       30.06.11           30.06.11    31.12.11        31.12.11

     Authorised:

     Shares of R1
     each                   50 000                  50 000        50 000          50 000       50 000          50 000

     Issued:

     Shares of R1
     each                   20 100                  20 100        10 100          10 100       10 100          10 100
     Share
     premium                     -       2 909 979 900                 -   209 989 900                -   209 989 900
                                         2 910 000 000                     210 000 000                    210 000 000



     The remaining unissued shares are under the control of the directors until the forthcoming annual general
     meeting.


8.   Interest income
                                                             6 months ended        6 months ended           Year ended
     Rand                                                           30.06.12             30.06.11             31.12.11
     Fellow subsidiary companies                                  881 627 702         792 520 326         1 608 047 182

     Interest and other income                                    594 135 529         649 815 061         1 371 212 061
                                                               1 475 763 231        1 442 335 387         2 979 259 243


9.   Interest expense
                                                             6 months ended        6 months ended           Year ended
     Rand                                                           30.06.12             30.06.11             31.12.11

     Committed facilities                                          69 767 190           73 606 082         148 486 765

     Bonds                                                        101 993 457           54 638 869         109 762 919

     Term loan                                                    138 638 981          139 796 805         279 940 501
     Net settlement on debt related interest rate
     swaps                                                        (58 146 457)         (51 171 943)        (101 931 838)
                                                                  252 253 171         216 869 813          436 258 347

     Holding company                                              628 938 840         568 330 410         1 278 685 288

     Fellow subsidiary companies                                  271 016 057         316 246 899          626 103 708
                                                                  899 954 897         884 577 309         1 904 788 996
                                                               1 152 208 068         1 101 447 122        2 341 047 343




                                                             11
                                                                               Anglo American SA Finance Limited
Notes to the financial statements (continued)
30 June 2012


10.    Profit before taxation

       The following items have been included in arriving at profit before taxation:
                                                         6 months ended           6 months ended       Year ended
       Rand                                                     30.06.12                30.06.11         31.12.11
       Auditors? remuneration

       - Audit fees current year                                   313 586                 45 600         616 911

       - Other services                                                   -                      -        147 060

       Fees for services
       - Administration fee to Anglo Operations
         Limited                                                  4 572 860             4 596 383       9 218 445
       Fair value on interest rate derivative

       - Fair value on interest rate swap                     (43 478 545)             69 147 782       9 324 046

       - Fair value on hedged interest rate risk                 38 573 959            (71 749 288)    (13 330 324)

       Foreign exchange forward contracts

       - Fair value through profit or loss                           1 118              1 510 057         545 138
       - Net foreign exchange loss                                   (7 659)            (1 540 649)                  -



11.   Income tax expense
                                                         6 months ended           6 months ended       Year ended
      Rand                                                      30.06.12                30.06.11         31.12.11

      South African normal taxation
      Current taxation                                        (59 811 199)             (71 055 834)   (155 600 224)
      Deferred taxation (note 2)                              (20 472 254)             (15 364 638)     (5 820 110)
      Total income tax charge                                 (80 283 453)             (86 420 472)   (161 420 334)


      Tax rate reconciliation
                                                         6 months ended           6 months ended       Year ended
      Percentage                                                30.06.12                30.06.11         31.12.11



      South African tax at normal rate                               28.00                  28.00           28.00
      Prior year tax adjustment                                        0.03                  (0.32)              -
      Effective tax rate                                             28.03                  27.68           28.00




                                                            12
                                                                            Anglo American SA Finance Limited
Notes to the financial statements (continued)
30 June 2012


12.   Reconciliation of profit before tax to cash outflow from operations
                                                      6 months ended           6 months ended            Year ended
      Rand                                                   30.06.12                30.06.11              31.12.11
      (Loss) \ profit before taxation                   (2 926 389 797)           312 252 109           576 759 011

      Interest income                                   (1 475 763 231)         (1 442 335 388)       (2 979 259 243)

      Interest expense                                   1 173 315 053          1 120 877 904         2 381 168 574

      Currency loss                                               6 541                30 592                545 138

      Amortisation of fair value adjustment                (21 106 985)           (19 430 782)           (40 121 240)

      Fair value hedge adjustment                             (4 904 586)           (2 601 506)           (4 006 278)
      Decrease \ (increase) in operating
                                                              37 185 584          (44 919 318)           (30 530 894)
      receivables
      Increase in operating payables                          61 246 230           21 699 286              2 326 175

      Impairment of intercompany loan                    3 213 116 418                       -                      -

      Cash inflow \ (outflow) from operations                 56 705 227          (54 427 103)           (93 118 757)


13.   Income tax paid
                                                      6 months ended           6 months ended            Year ended
      Rand                                                   30.06.12                30.06.11              31.12.11
      Balance at start of period                           (14 083 149)             (7 342 459)           (7 342 459)

      Income tax charge (Note 11)                          (59 811 199)           (71 055 834)         (155 600 224)

      Balance at end of period                                57 963 881           12 439 583            14 083 149

                                                           (15 930 467)           (65 958 710)         (148 859 534)


14.   Related party transactions
      The Company enters into various financial transactions with group companies. These transactions are in the
      ordinary course of business and are conducted on an arms-length basis.

      Loans to group companies are disclosed in note 4 and deposits from group companies are disclosed in note 6.

      A guarantee fee, amounting to R3 914 199 (30 June 2011: R4 027 870; 31 December 2011: R8 122 500) was
      due to Anglo American South Africa Limited in respect of the period under review (refer note 5). As at 30 June
      2012 an amount of R2 025 062 (30 June 2011: R2 025 062; 31 December 2011: R2 047 315) was still
      outstanding and is included in “Amounts due to group companies” on the balance sheet.

      A guarantee fee amounting to R5 875 623 (30 June 2011: R4 413 823; 31 December 2011: R9 103 933) was
      due to Anglo American plc in respect of the period under review (refer note 5). As at 30 June 2012 an amount
      of R3 590 138 (30 June 2011: R2 593 398; 31 December 2011: R2 245 808) was still outstanding and is included
      in “Trade and other payables” on the balance sheet.

      Interest received from group companies is disclosed in note 8. Interest paid to group companies is disclosed in
      note 9. Administration fees paid to a group company is disclosed in note 10.

      A commitment fee amounting to R735 259 (30 June 2011: R6 945 432; 31 December 2011: R13 863 026) was
      receivable from Anglo Platinum Management Services (Pty) Limited in respect of the period under review
      30 June 2012. As at 30 June 2012 an amount of R4 335 (30 June 2011: R1 620 444; 31 December 2011:
      R8 538 038) was still outstanding and is included in “Trade and other receivables” on the balance sheet.




                                                         13
                                                                            Anglo American SA Finance Limited
Notes to the financial statements (continued)
30 June 2012


15.   Derivatives and other financial instruments

       15(a) Fair value of financial assets and liabilities


       The estimated fair value of financial instruments approximates their carrying value.
       Derivatives instruments as at 30 June 2012:
                                                                    Estimated           Estimated                   Net
                                                                     fair value          fair value            carrying
        Rand                                                              asset            liability              value
        Derivatives to manage foreign exchange risks               98 069 070          98 069 070                      -
        Derivatives to manage interest rate risk                  237 609 583                      -        237 609 583
                                                                  335 678 653          98 069 070           237 609 583


       Derivatives instruments as at 30 June 2011:
                                                                     Estimated          Estimated                    Net
                                                                      fair value         fair value             carrying
        Rand                                                               asset            liability             value
        Derivatives to manage foreign exchange risks               46 149 822          46 149 822                      -
        Derivatives to manage interest rate risk                  126 878 253                      -        126 878 253
                                                                  173 028 075          46 149 822           126 878 253


       Derivatives instruments as at 31 December 2011:
                                                                     Estimated          Estimated                    Net
                                                                      fair value         fair value             carrying
        Rand                                                               asset            liability             value
        Derivatives to manage foreign exchange risks              107 113 685         107 113 685                          -
        Derivatives to manage interest rate risk                  187 141 279                      -         18 141 279
                                                                  294 254 964         107 113 685           187 141 279

       The fair value of the derivative instruments is determined by reference to market prices where available, otherwise
       pricing or valuation models are applied to current market information to estimate their value.

       15(b) Undrawn borrowing commitments
       The Company had the following undrawn committed borrowing facilities at:
        Rand
                                                                      30.06.12            30.06.11             31.12.11
        Expiry date
        In one year or less                                    11 282 000 000       9 782 000 000         9 782 000 000
        Between one and two years                               1 818 000 000       1 500 000 000         1 500 000 000
        In more than two years                                  3 800 000 000       5 618 000 000         5 618 000 000
                                                               16 900 000 000      16 900 000 000       16 900 000 000




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