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ANG
ANANO
ANG - Anglogold Ashanti Limited - Results for the fourth quarter and year ended
31 december 2007
ANGLOGOLD ASHANTI LIMITED
Registration No. 1944/017354/06
Incorporated in the Republic of South Africa
Share codes: ANG
ISIN: ZAE000043485
JSE: ANG
LSE: AGD
NYSE: AU
ASX: AGG
GhSE (Shares): AGA
GhSE (GhDS): AAD
Euronext Paris: VA
Euronext Brussels: ANG
ANGLOGOLD ASHANTI RESULTS FOR THE FOURTH QUARTER AND YEAR ENDED 31 DECEMBER 2007
- Gold production decreases 5% to 1.37Moz, following safety interventions in
South Africa and operational difficulties at Geita.
- Total cash costs at $404/oz, primarily as a result of lower production, local
currency appreciation, and the purchase of uranium to meet contractual
obligations.
- Adjusted headline earnings similar to previous quarter at $82m, before year-
end adjustments amounting to $64m. Including year - end accounting adjustments,
adjusted headline earnings at $18m.
....and for the year
- Gold production declines 3% to 5.48Moz.
- Total cash costs increased by 16% to $357/oz, due to lower production,
stronger local currencies and inflationary pressure.
- Adjusted headline earnings for the year at $278m.
- Mineral Resource increases by 34.1Moz, before depletion for the year, with
6.95Moz (attributable) from Greenfields discoveries.
Ore Reserves increases 13Moz, before depletion to 73.1Moz.
- Final dividend declared at 53 South African cents per share or 7 US cents per
share, resulting in total dividend of 143 South African cents or 20 US cents
per share for the year.
Quarter
ended ended
Dec Sept
2007 2007
SA rand / Metric
Operating review
Gold
Produced - kg / oz (000) 42,556 44,611
Price received - R/kg / $/oz 149,312 141,400
Total cash costs - R/kg / $/oz 87,744 81,186
Total production costs - R/kg / $/oz 122,344 107,239
Financial review
Gross (loss) profit - Rm / $m (2,354) (879)
Gross profit adjusted for the loss
on unrealised
non- hedge derivatives and other
commodity contracts - Rm / $ m 1,309 1,761
Loss attributable to equity
shareholders - Rm / $m (3,199) (2,003)
Headline loss 1 - Rm / $m (3,095) (1,972)
Headline earnings adjusted for the
loss on unrealised non- hedge
derivatives , other commodity
contracts and fair value adjustments
on convertible bond - Rm / $m 117 575
Capital expenditure - Rm / $ m 2,315 1,733
Loss per ordinary share - cents/share
Basic (1,136) (712)
Diluted (1,136) (712)
Headline 1 (1,099) (701)
Headline earnings adjusted for the loss on
unrealised non- hedge derivatives and other
commodity contracts and fair value adjustments
on convertible bond - cents/share 42 204
Dividends - cents/share 53
Year
ended ended
Dec Dec
2007 2006
SA rand / Metric
Operating review
Gold
Produced - kg / oz (000) 170,365 175,253
Price received - R/kg / $/oz 142,107 126,038
Total cash costs - R/kg / $/oz 80,490 67,133
Total production costs - R/kg / $/oz 107,415 90,345
Financial review
Gross (loss) profit - Rm / $m (524) 2,700
Gross profit adjusted for the loss
on unrealised
non- hedge derivatives and other
commodity contracts - Rm / $ m 6,590 7,207
Loss attributable to equity
shareholders - Rm / $m (4,269) (587)
Headline loss 1 - Rm / $m (4,136) (850)
Headline earnings adjusted for the
loss on unrealised non- hedge
derivatives , other commodity
contracts and fair value adjustments
on convertible bond - Rm / $m 1,971 2,777
Capital expenditure - Rm / $ m 7,444 5,533
Loss per ordinary share - cents/share
Basic (1,516) (215)
Diluted (1,516) (215)
Headline 1 (1,470) (312)
Headline earnings adjusted for the loss on
unrealised non- hedge derivatives and other
commodity contracts and fair value adjustments
on convertible bond - cents/share 700 1,018
Dividends - cents/share 143 450
Quarter
ended ended
Dec Sept
2007 2007
US dollar / Imperial
Operating review
Gold
Produced - kg / oz (000) 1,368 1,434
Price received - R/kg / $/oz 687 621
Total cash costs - R/kg / $/oz 404 357
Total production costs - R/kg / $/oz 563 471
Financial review
Gross (loss) profit - Rm / $m (355) (159)
Gross profit adjusted for the loss
on unrealised
non- hedge derivatives and other
commodity contracts - Rm / $m 195 249
Loss attributable to equity
shareholders - Rm / $m (482) (316)
Headline loss 1 - Rm / $m (466) (312)
Headline earnings adjusted for the
loss on unrealised non- hedge
derivatives , other commodity
contracts and fair value adjustments
on convertible bond - Rm / $m 18 81
Capital expenditure - Rm / $m 339 245
Loss per ordinary share - cents/share
Basic (171) (112)
Diluted (171) (112)
Headline 1 (165) (111)
Headline earnings adjusted for the loss on
unrealised non- hedge derivatives and other
commodity contracts and fair value adjustments
on convertible bond - cents/share 6 29
Dividends - cents/share 7
Year
ended ended
Dec Dec
2007 2006
US dollar / Imperial
Operating review
Gold
Produced - kg / oz (000) 5,477 5,635
Price received - R/kg / $/oz 629 577
Total cash costs - R/kg / $/oz 357 308
Total production costs - R/kg / $/oz 476 414
Financial review
Gross (loss) profit - Rm / $m (136) 443
Gross profit adjusted for the loss
on unrealised
non- hedge derivatives and other
commodity contracts - Rm / $m 935 1,058
Loss attributable to equity
shareholders - Rm / $m (668) (44)
Headline loss 1 - Rm / $m (648) (82)
Headline earnings adjusted for the
loss on unrealised non- hedge
derivatives , other commodity
contracts and fair value adjustments
on convertible bond - Rm / $m 278 411
Capital expenditure - Rm / $m 1,059 817
Loss per ordinary share - cents/share
Basic (237) (16)
Diluted (237) (16)
Headline 1 (230) (30)
Headline earnings adjusted for the loss on
unrealised non- hedge derivatives and other
commodity contracts and fair value adjustments
on convertible bond - cents/share 99 151
Dividends - cents/share 20 62
Notes: 1. Refer to note 8 of Notes for the definition.
$ represents US dollar, unless otherwise stated.
Rounding of figures may result in computational discrepancies.
Operations at a glance
for the quarter ended 31 December 2007
Production Total cash costs
% %
oz (000) Variance 1 $/oz Variance 1
Mponeng 136 (12) 304 20
Sunrise Dam 150 (2) 348 25
AngloGold Ashanti Mineracao 91 5 251 14
Kopanang 104 (11) 329 8
Cripple Creek & Victor J.V. 89 48 277 (10)
TauTona 97 (17) 357 12
Morila 2 52 - 351 15
Great Noligwa 116 (2) 543 37
Cerro Vanguardia 2 51 2 310 7
Siguiri 2 83 36 439 (15)
Serra Grande 2 21 (9) 292 9
Sadiola 2 40 14 419 5
Tau Lekoa 40 (7) 516 7
Iduapriem 2 45 (13) 414 15
Savuka 17 (15) 422 4
Navachab 20 (5) 527 22
Yatela 2 22 (27) 547 43
Moab Khotsong 23 35 693 -
Geita 58 (47) 722 80
Obuasi 84 - 489 (5)
Other 30 -
AngloGold Ashanti 1,368 (5) 404 13
Gross profit (loss)
adjusted for the loss
Cash gross profit on unrealised non-
(loss) hedge derivatives
and other
commodity
contracts
% %
$m Variance 1 $m Variance 1
Mponeng 52 (12) 39 (15)
Sunrise Dam 47 (11) 34 (17)
AngloGold Ashanti Mineracao 37 19 26 24
Kopanang 36 (3) 27 (4)
Cripple Creek & Victor J.V. 36 50 28 87
TauTona 32 (11) 12 (43)
Morila 2 20 54 16 78
Great Noligwa 16 ( 41) 5 (67)
Cerro Vanguardia 2 14 (13) 8 (20)
Siguiri 2 14 100 4 500
Serra Grande 2 9 13 7 17
Sadiola 2 8 14 7 17
Tau Lekoa 7 17 1 -
Iduapriem 2 5 (64) 2 (78)
Savuka 5 25 4 100
Navachab 4 - 3 50
Yatela 2 2 (71) 1 (83)
Moab Khotsong (6) (500) (22) (214)
Geita (8) (131) (16) (223)
Obuasi (12) (300) (23) (229)
Other 41 141 33 136
AngloGold Ashanti 358 (11) 195 (22)
1 Variance December 2007 quarter on September 2007 quarter - increase
(decrease).
2 Attributable.
Rounding of figures may result in computational discrepancies.
Financial and operating review
OVERVIEW FOR THE QUARTER AND YEAR
FOURTH QUARTER
On 8 November 2007 the company launched its "Safety is our first value"
campaign in South Africa, in collaboration with trade unions and government
representatives. Combined with the launch, safety interventions were undertaken
at each operation to re-emphasize the company`s safety principles and
standards, with the key focus on leadership behaviours and improving compliance
to operating standards at the shop floor.
Prior to the launch on 8 November 200 7, eight employees lost their lives at
the South African operations during the quarter, with one fatality at Obuasi in
Ghana. Following the launch, there were no fatalities for the remaining 53 days
of the quarter and year. The South African operations reduced their fatal
injury rate by 17% year -on-year, while there was an increase in the fatality
rate at operations outside of South Africa.
AngloGold Ashanti remains committed to a continuing focus on raising safety
standards , and there is a commitment to use OHSAS 18001 and OHSAS 18002 as the
templates for the safety management framework. At the end of the year, half of
the operations were certified OHSAS 18001 compliant, with the balance on
schedule for certification during 2008.
Gold production for the quarter was 5% lower at 1.37Moz, mainly as a result of
the safety interventions in South Africa and operational difficulties at Geita.
Total cash costs at $404/oz, was 13% higher than the previous quarter, which
was impacted by lower production, appreciation of local currencies, and the
purchase of uranium to meet contractual obligations.
Adjusted headline earnings for the quarter were $18m, compared with $81m in the
third quarter. Adjusted headline earnings were adversely distorted by annual
accounting adjustments which totalled $64m and included adjustments on
rehabilitation, inventory, and current and deferred tax provisions. This was
further exacerbated by stronger local operating currencies, higher exploration
expenditure and lower production, specifically in South Africa, Ghana and
Tanzania.
In South Africa, gold production dropped 9% to 17,503kg, following safety
interventions, stoppages and the one-day NUM strike. Total cash costs increased
14% to R87,949/kg on the back of lower production and adverse by-products
contribution, following the decision to take advantage of weaker uranium prices
in October 2007 when 300,000 pounds of uranium were purchased. Excluding the
purchase of additional uranium, total cash costs increased 4% quarter-on-
quarter.
The other African assets had a mixed quarter, with significant operational
improvements from Siguiri and Sadiola, which posted increased gold production
of 36% and 14% respectively. Morila and Obuasi were on par with the previous
quarter. Iduapriem was affected by power outages, with gold production
declining 13%, while Yatela and Navachab declined 27% and 5% respectively.
Geita was adversely affected by discharge pump failures and the treatment of
hard ore, resulting in gold production being 47% lower.
The international operations remained steady during the quarter, with Cerro
Vanguardia and AngloGold Ashanti Brasil Mineracao improving their gold
production by 2% and 5% respectively, while Sunrise Dam was marginally lower,
as the operation continued to mine the higher grade area. Gold production at
CC&V improved 48% quarter- on-quarter, as delays from improved leach pad
stacking depths were rectified. Consequently, total cash costs at CC&V reduced
by 10% and adjusted gross profit improved 87% to $28m for the quarter.
During the quarter, following a review process, a regional operating structure
was established with Robbie Lazare (Africa), Ron Largent (Americas) and Graham
Ehm (Australasia) appointed as Executive Vice Presidents accountable for their
respective operating regions, reporting directly to the CEO. This restructuring
is designed to further strengthen the focus on delivering improved operational
performance and safety improvement.
Two teams have also been established in the Africa region, with Johan Viljoen
appointed Regional Head for Southern Africa, and Christian Rampa Luhembwe
appointed Regional Head for West Africa. Following the disappointing recent
performance from Geita, Richard Le Seur has been appointed as the new Managing
Director at Geita, reporting directly to Robbie Lazare.
YEAR
The company`s total Mineral Resource before depletion increased by 34.1Moz for
the year. After depletion, this represents an increase of 26. 0Moz, from
181.6Moz in 2006 to 207.6Moz in 2007, of which 6.95Moz (attributable) were
delineated by AngloGold Ashanti`s greenfields exploration teams for the year,
at three key prospects, namely Tropicana (Western Australia), Mongbwalu (DRC)
and Gramalote (Colombia). Significant other additions include 17.1Moz at
Mponeng and 4.7Moz at CC&V, both due to improved economics and revised
methodologies.
In 2007, AngloGold Ashanti recorded an increase in total ore reserves before
depletion of 13.0Moz. After depletion, this represents a 9% increase
year-on-year, from 66.9Moz in 2006 to 73.1Moz in 2007. Significant additions
included 3.8Moz at Moab Khotsong, due to the inclusion of Project Zaaiplaats, a
deepening of Moab Khotsong to access deeper Vaal Reef blocks to the South West
of the current mine, and 3.4Moz at Mponeng, due to the inclusion of the Carbon
Leader Reef project below 120 Level.
Production for 2007 declined by 3% or 158,000oz against the previous year, with
Great Noligwa and TauTona showing production declines of 132,000oz and
65,000oz respectively, affected by mining redesign following safety concerns at
TauTona and by lower grades at Great Noligwa, as mining moves into the lower
grade SV3 area. Both Sunrise Dam in Australia and Siguiri in Guinea achieved
record production levels of 600,000oz and 280,000oz (attributable),
respectively, for the year.
Total cash costs increased by 16% to $357/oz, due to lower production, stronger
local currencies , higher by -product losses (uranium purchases), higher
royalty payments (higher gold price), increased maintenance activities and
inflationary pressure. Combined with a higher spend on exploration activities
year- on-year to the value of $59m, adjusted headline earnings reduced from
$411m in 2006 to $278m.
A dividend of 53 South African cents (7 US cents) per share was declared for
the six months ended 31 December 200 7. This represents a similar dividend
payout level to adjusted headline earnings, as per the interim year
declaration, resulting in a total dividend for the year of 143 South African
cents (20 US cents) per share.
On 1 4 January 2008, AngloGold Ashanti agreed to acquire 100% of Golden Cycle
Gold Corporation (GCGC), for an aggregate consideration of approximately $149m.
GCGC, which is listed and trades on the NYSE Arca Exchange, is a Colorado
-based holding company with its primary investment being its joint venture
interest in CC&V and which is majority owned by AngloGold Ashanti. The
successful completion of the acquisition, will allow AngloGold Ashanti to
consolidate 100% interest in CC&V. Under the terms of the CC&V joint venture
agreement, AngloGold Ashanti was entitled to 100% of the net proceeds from the
CC&V mine until GCGC has repaid its initial loans.
On 24 January 2008, AngloGold Ashanti entered into agreements to sell its
royalty interests in El Chanate (Sonaro, Mexico) and Marigold (Nevada, USA) to
Royal Gold for $13.75m. The transaction is subject to due diligence and is
expected to be completed by the end of the first quarter.
On 25 January 2008, the South African national power supplier, Eskom,
communicated that it could not guarantee power supply to the local operations.
Precautionary steps were immediately taken for the safety of all employees,
with no employees transported underground to carry-out mining activities,
together with the cessation of milling activities. Following extensive
discussions with Eskom and government, a power supply of 90% has been offered,
although at the time of writing, this was still to be attained, which means
that first quarter 2008 production from South African operations has been
severely disrupted. The company is still reviewing a scenario in which only 90%
of power is available to its South African operations.
Equally important is Eskom`s ability to maintain a continuous power supply, at
a 90% level, given that since 25 January 2008, the company has experienced
daily fluctuations in available power which in turn has further disrupted the
attempt to return to normal production levels and milling rates.
Since 2004, Eskom and AngloGold Ashanti have been working to improve energy
efficiencies and reduce consumption, with both organisations committing funds
and resources to the programme. These combined efforts have achieved a 17%
improvement in energy efficiencies by the Company during this period.
Subject to the power stability and availability at the 90% level, the
production for the 2008 year is expected to be within the range of 4.8Moz to
5.0Moz. Total cash costs are anticipated to be between $425/oz and $435/oz ,
based on the following exchange rate assumptions: R7. 35/$, A$/$0.88, BRL1.81/$
and Argentinean peso 3.10/$. Capital expenditure for the year is estimated to
be $1,259m, and will be managed in line with profitability and cash flow.
Production for the first quarter of 2008, based on 90% stabilising power supply
and associated operating recovery , is estimated to be 1.10Moz at an average
total cash cost of $46 7/oz , as suming the following exchange rates: R 7.35/$
, A$/$0. 89, BRL1.8 1/$ and Argentinean peso 3. 10/$. Capital expenditure
is estimated at $328m.
The table below provides guidance for the year in respect of forecast ounces,
total cash costs and capital expenditure, taking into consideration the impact
of a 90% power supply in South Africa, as well as the current operational
constraints at Geita.
Operational forecast for 2008
Operation Forecast Expected Forecast Capital
Production Cash Cost Expenditure
Ounces (000) US$/oz* US$m**
South Africa 1,800 - 1,900 395 - 415 383
Argentina 200 - 205 310 - 320 22
Australia 400 - 420 595 - 605 411
Brazil 400 - 415 290 - 300 113
Ghana 580 - 620 420 - 430 172
Guinea 260 - 270 475 - 485 16
Mali 400 - 420 410 - 420 8
Namibia 75 - 80 520 - 530 34
Tanzania 330 - 340 595 - 605 64
North America 290 - 300 310 - 320 28
Other 8
AngloGold Ashanti 4,800 - 5,000 425 - 435 1,259
* Assumes the following exchange assumptions to the US dollar: R7.35/$, A$/$0.
88, BRL1.81/$ and Argentinean peso3.10/$.
** Capital expenditure is managed in line with earnings and cash flow, and may
fluctuate accordingly.
Notes:
- All references to price received includes realised non- hedge derivatives.
- In the case of joint venture and operations with minority holdings, all
production and financial results are attributable to AngloGold Ashanti.
- Adjusted gross profit is gross profit (loss) adjusted to exclude unrealised
non-hedge derivatives and other commodity contracts.
- Adjusted headline earnings is headline earnings before unrealised non- hedge
derivatives and other commodity contracts, fair value adjustments on the option
component of the convertible bond and deferred tax thereon.
- Rounding of figures may result in computational discrepancies.
Review of the gold market
Gold exhibited exceptional trading strength in the fourth quarter, with dollar
prices reaching a high of $845/oz in early November, on the back of US credit
concerns and fears that the US economy may stagnate or enter a recession. The
first two months of the quarter were also characterised by highly volatile US
dollar gold prices , with gold trading in a range of $728/oz to $841/oz.
The average US dollar gold price for the quarter was $78 8/oz, 16% higher than
the previous quarter`s average price of $680/oz. The rand gold price saw
record highs of some R187,000/kg and averaged R171,334/kg for the quarter, some
10% higher than the previous quarter`s average of R15 5,005/kg.
JEWELLERY DEMAND
Having performed well in the first half of the year, jewellery demand suffered
from price volatility exhibited in the fourth quarter, particularly in
traditional markets such as the Middle East and India.
Gold jewellery demand in the Gulf countries was particularly affected by this
period of price volatility, as local currencies are linked to the dollar and so
the full effect of US dollar gold price volatility was felt by local consumers
. This came at a time of inflationary concerns and escalating rents, which
dampened gold purchases considerably, and it is likely that the region`s
consumption will show a reduction in tonnage terms for the fourth quarter,
compared to the same period in 2006.
Both the Egyptian and Turkish markets performed well, owing to increased
economic stability as well as good consumption from the tourist sector.
These markets were also protected against the worst impact of US dollar price
volatility, as local currencies performed strongly against the dollar.
In India, demand was adversely impacted by price volatility and the lack of
seasonal buying opportunities during the fourth quarter. However, over the
year as a whole, consumption is expected to show an increase, due to record
demand levels in tonnage and value terms achieved in the first half of the
year.
Chinese consumption remained steady despite high and volatile prices. While
there was good demand for 18 carat gold jewellery at the top end of the US
market, middle and mass market retailers were negatively impacted by a general
downturn in retail sales.
Looking forward to 2008, a major concern is that retailers, particularly those
in price sensitive markets, will only re-stock slowly, amidst concerns that
gold prices may continue to show the volatility exhibited in the first part of
the fourth quarter. In China, manufacturers have reported orders at only one
third of typical levels for this time of year. High absolute price levels will
also act as a constraint on demand, as manufacturers will have access to
reduced levels of gold working inventory finance.
CENTRAL BANK SALES
The second Central Bank Gold Agreement entered its third period in September
2007. Sales occurring to date in this new period of the agreement are estimated
to be approximately 135t , and have taken place without any disruption to the
market.
INVESTMENT MARKET
The fourth quarter was an active period in the investment sector. On the
exchanges, the average net long position during the quarter of some 24Moz.
Investment in Exchange Traded Funds (ETFs) continued the strong performance
exhibited in the third quarter into the period under review.
Total holdings at year end stood at close to 28Moz, with a total value of over
$23bn, of which some $17bn is held in the US -listed ETF, StreetTracks.
INDUSTRIAL DEMAND
The industrial sector accounts for 12% of physical demand, of which the
electronics industry accounts for some 70% of demand, and continues to show
growth over the previous period.
PRODUCER HEDGING
Producer de- hedging slowed in the fourth quarter
from the exceptional levels of previous quarters ,
particularly the first half of the year. No new gold
hedges of any significant proportions were
reported during the quarter.
CURRENCIES
The US dollar continued its sharp depreciation against the Euro and reached a
new low of Euro/US$1.49 in late November. This was as a consequence of the
ongoing credit crisis and the perceived need for further interest rate cuts in
order to stimulate the economy. US dollar woes were further exacerbated by a
rising oil price, which was continuing to trade through its own record highs of
around US$90/bbl and peaked at US$ 96/bbl.
In South Africa, expectations of higher interest rates saw the Rand strengthen
during the first month of the quarter. Sentiment was further buoyed as the
single largest foreign investment in a South African company was announced,
when the Investment and Commercial Bank of China announced their intention to
purchase a 20% stake in Standard Bank South Africa. Risk aversion in
international markets once again caused a reversal of the Rand`s fortunes in
November, however this was not sustained and the Rand closed the quarter
unchanged.
The Australian dollar and Brazilian Real both strengthened marginally over the
quarter, gaining 1% and 3% respectively.
Hedge position
As at 31 December 2007, the total net delta tonnage of the hedge was 10. 39Moz
or 323t (at 30 September 2007: 10.58Moz or 329t). The reduction in the hedge
book from deliveries and maturing contracts was mostly offset by an increase in
the hedge delta due to the higher gold price.
The marked-to-market value of all hedge transactions making up the hedge
positions was a negative $4. 27bn (negative R29. 10bn), of which $2.4bn
(R16.2bn) is on balance sheet as at 31 December 2007 (at 30 September 2007:
negative $3.52bn or R24.17bn).
This value was based on a gold price of $836.30/oz, exchange rates of R6.84/$
and A$/$0. 88 and the prevailing market interest rates and volatilities at that
date. The increase in the negative marked-to-market value was primarily due to
the higher spot gold price.
For the quarter, the company`s received price of $687/oz, was 13% lower than
the average spot price of $788/oz for 2008, the gap in the received and spot
prices is likely to be between 18% to 20% going forward, provided that gold
trades in a price range of $700/oz and $900/oz.
As at 6 February 2008, the marked-to-market value of the hedge book was a
negative $4.69bn (negative R36.02bn), based on a gold price of $887.10/oz and
exchange rates of R 69/$ and 7. A$/$0.89 and the prevailing market interest
rates and volatilities at the time.
These marked-to-market valuations are not predictive of the future value of the
hedge position, nor of future impact on the revenue of the company. The
valuation represents the cost of buying all hedge contracts at the time of
valuation, at market prices and rates available at the time.
Year 2008 2009 2010
DOLLAR GOLD
Forward
contracts Amount (kg) 22,817 21,738 14,462
US$/oz $314 $316 $347
Restructure
Longs Amount (kg) *11,304
US$/oz $647
Put options soldAmount (kg) 25,962 3,748 1,882
US$/oz $682 $530 $410
Call options
purchased Amount (kg) 9,813
US$/oz $427
Call options
sold Amount (kg) 58 ,570 4 5 ,950 36 ,804
US$/oz $ 521 $4 98 $4 92
RAND GOLD
Forward
contracts Amount (kg) 933
Rand per kg R116,335
Call options
sold Amount (kg) 2,986 2,986
Rand per kg R202,054 R216,522
A DOLLAR GOLD
Forward
contracts Amount (kg) 16 ,018 3 ,390 3, 110
A$ per oz A $ 848 A$ 64 4 A$ 685
Put options
sold Amount (kg) 7 ,465
A$ per oz A$ 882
Call options
purchased Amount (kg) 3, 110 1 ,244 3 ,110
A$ per oz A$ 680 A$ 694 A$ 712
Call options
sold Amount (kg) 5 ,599
A$ per oz A $ 954
Delta (kg) (69,805) (70,154) (51,200)
** Total
net gold:
Delta (oz) (2,244,280) (2,255,500) (1,646,116)
Year 2011 2012
DOLLAR GOLD
Forward contracts Amount (kg) 12,931 11,944
US$/oz $397 $404
Restructure Longs Amount (kg)
US$/oz
Put options sold Amount (kg) 1,882 1 ,882
US$/oz $420 $4 30
Call options purchased Amount (kg)
US$/oz
Call options sold Amount (kg) 3 9 ,385 24 ,460
US$/oz $ 517 $ 622
RAND GOLD
Forward contracts Amount (kg)
Rand per kg
Call options sold Amount (kg) 2,986
Rand per kg R230,990
A DOLLAR GOLD
Forward contracts Amount (kg)
A$ per oz
Put options sold Amount (kg)
A$ per oz
Call options purchased Amount (kg)
A$ per oz
Call options sold Amount (kg)
A$ per oz
Delta (kg) (51,137) (33 ,123)
** Total net gold:
Delta (oz) (1,644,090) (1,064,928)
Year 2013-2015 Total
DOLLAR GOLD
Forward contracts Amount (kg) 12 ,364 96,256
US$/oz $432 $357
Restructure Longs Amount (kg) *11,304
US$/oz $647
Put options sold Amount (kg) 3 ,764 39 ,1 20
US$/oz $445 $ 607
Call options purchased Amount (kg) 9,813
US$/oz $427
Call options sold Amount (kg) 39 ,924 2 45,093
US$/oz $ 604 $ 535
RAND GOLD
Forward contracts Amount (kg) 9 33
Rand per kg R116,335
Call options sold Amount (kg) 8,958
Rand per kg R216,522
A DOLLAR GOLD
Forward contracts Amount (kg) 22 ,51 8
A$ per oz A$ 795
Put options sold Amount (kg) 7 ,46 5
A$ per oz A$ 882
Call options purchased Amount (kg) 7 ,46 4
A$ per oz A$ 696
Call options sold Amount (kg) 5 ,599
A$ per oz A$ 954
Delta (kg) (47 ,702) (323,121)
** Total net gold:
Delta (oz) (1,533,653) (10,388,567)
* Indicates a long position resulting from forward purchase contracts. The
group enters into forward purchase contracts as part of its strategy to
actively manage and reduce the size of the hedge book.
** The Delta of the hedge position indicated above is the equivalent gold
position that would have the same marked-to -market sensitivity for a small
change in the gold price. This is calculated using the Black-Scholes option
formula with the ruling market prices, interest rates and volatilities as at 3
1 December 2007.
Rounding of figures may result in computational discrepancies.
Year 2008 2009 2010 20 11
DOLLAR SILVER
Put options purchased Amount (kg) 43,545
$ per oz $7.66
Put options sold Amount (kg) 43,545
$ per oz $6.19
Call options sold Amount (kg) 43,545
$ per oz $8.64
Year 2012 2013-2015 Total
DOLLAR SILVER
Put options purchased Amount (kg) 43,545
$ per oz $7.66
Put options sold Amount (kg) 43,545
$ per oz $6.19
Call options sold Amount (kg) 43,545
$ per oz $8.64
The following table indicates the group`s currency hedge position at 31
December 2007
Year 2008 2009 2010 2011
RAND DOLLAR (000)
Forward contracts Amount ($) 35,000
US$/R R6.94
Put options purchased Amount ($) 120,000
US$/R R6.98
Put options sold Amount ($) 120,000
US$/R R6.65
Call options sold Amount ($) 135,000
US$/R R7.35
A DOLLAR (000)
Forward contracts Amount ($) 190,000
A$/US$ $ 0.84
Put options purchased Amount ($) 140,000
A$/US$ $ 0.83
Put options sold Amount ($) 140,000
A$/US$ $ 0.87
Call options sold Amount ($) 140,000
A$/US$ $ 0.81
BRAZILIAN REAL (000)
Forward contracts Amount ($) 31,000
US$/BRL BRL 1.99
Put options purchased Amount ($) 24,000
US$/BRL BRL 1.87
Call options sold Amount ($) 68,000
US$/BRL BRL 1.92
Year 2012 2013-2015 Total
RAND DOLLAR (000)
Forward contracts Amount ($) 35,000
US$/R R6.94
Put options purchased Amount ($) 120,000
US$/R R6.98
Put options sold Amount ($) 120,000
US$/R R6.65
Call options sold Amount ($) 135,000
US$/R R7.35
A DOLLAR (000)
Forward contracts Amount ($) 190,000
A$/US$ $ 0.84
Put options purchased Amount ($) 140,000
A$/US$ $ 0.83
Put options sold Amount ($) 140,000
A$/US$ $ 0.87
Call options sold Amount ($) 140,000
A$/US$ $ 0.81
BRAZILIAN REAL (000)
Forward contracts Amount ($) 31,000
US$/BRL BRL 1.99
Put options purchased Amount ($) 24,000
US$/BRL BRL 1.87
Call options sold Amount ($) 68,000
US$/BRL BRL 1.92
Derivative analysis by accounting designation as at 3 1 December 2007
Cash flow
Normal sale hedge
exempted accounted
(US Dollars (millions)
Commodity option contracts (675) -
Foreign exchange option contracts - -
Forward sale commodity contracts (1,230) (336)
Forward foreign exchange contracts - 4
Interest rate swaps (26) -
Total hedging contracts (1,931) (3 32)
Option component of convertible bonds - -
Total derivatives (1,931) (3 32)
Non-hedge
accounted Total
(US Dollars (millions)
Commodity option contracts (2 ,030) (2,705)
Foreign exchange option contracts (6) (6)
Forward sale commodity contracts (50) (1,616)
Forward foreign exchange contracts 7 11
Interest rate swaps 34 8
Total hedging contracts (2,045) (4,308)
Option component of convertible bonds (25) (25)
Total derivatives (2,070) (4,333)
Rounding of figures may result in computational discrepancies.
Exploration
Total exploration expenditure increased to $48m ($22m brownfields, $26m
greenfields) during the fourth quarter of 2007, compared to $46m ($21m
brownfields, $25m greenfields) in the previous quarter. This brings the total
spend on exploration activities for the year to $167m ($75m brownfields;
$92m greenfields), the highest spend recorded in the company`s history ,
against a spend in 2006 of $103m ($52m brownfields; $51m greenfields).
In 2007, AngloGold Ashanti recorded an increase in total ore reserves before
depletion of 13.0Moz. After depletion, this represents a 9% increase year- on
-year, from 66.9Moz in 2006 to 73.1Moz in 2007. Significant additions included
3.8Moz at Moab Khotsong due to the inclusion of Project Zaaiplaats, the
deepening of Moab Khotsong to access deeper Vaal Reef blocks to the South West
of the current mine, and 3.4Moz at Mponeng, due to inclusion of the Carbon
Leader Reef project below 120 Level.
The company`s total Mineral Resource before depletion increased by 34. 1 Moz
for the year. After depletion, this represents an increase of 26. 0Moz, from
181.6Moz in 2006 to 207.6Moz in 2007, with 6.95Moz (attributable) delineated by
AngloGold Ashanti`s greenfields exploration teams, at three key prospects,
namely Tropicana (Western Australia), Mongbwalu (DRC) and Gramalote (Colombia).
Other additions include 17.1Moz at Mponeng, and 4.7 Moz at CC&V, both due to
improved economics and revised methodologies.
BROWNFIELDS EXPLORATION
In South Africa , surface drilling continued in the Project Zaaiplaats area,
with borehole MZA9, a long deflection to the east in progress, and drilling at
borehole MMB5 continued.
Surface drilling in the Moab North area has been re-started after the
structural interpretation was updated. Borehole MCY4 has been re-opened and a
deflection to the east is in progress and borehole MCY5 advanced 1,606m during
the quarter.
At Tau Lekoa, borehole G54 was started during the quarter and intersected
poorly developed Venterdorp Contact Reef at 1,097m and deflection drilling
continues.
At Iduapriem in Ghana , resource conversion (RC) drilling at Blocks 7 and 8 was
completed in November 2007. An additional 19 holes were drilled during the
quarter, in an effort to convert inferred mineral resources to indicated miner
al resources . Modelling has commenced.
In Australia, at Boddington mine, three rigs were employed on resource
conversion and near mine extension exploration diamond drilling. During the
quarter, approximately 16,263m of drilling from 17 holes was completed, and
for the year, a total of 121,212m from 151 holes was drilled.
In Brazil, at Corrego do Sitio Sulphide Project, drilling continued at
Laranjeira and Carvoaria ore bodies (Paraiso). At the Lamego project, surface
and underground exploration of the Carruagem and Arco da Velha zones is
progressing. At Cuiaba Mine, the narrow- vein subsidiary orebodies, notably
Balancao, were explored with the objective to obtain additional ore and
enhance mining flexibility.
At Siguiri in Guinea, exploration activities focused on 25m by 25m of infill
RC drilling at Kintinian (situated 4km north of the plant), and 50m by 50m of
infill RC drilling at Sintroko South (situated 8km south of the mine).
Reconnaissance aircore drilling commenced on the coincident AEM and geochemical
anomalies at Kouremale in Block 4, close to the Malian border, and in Block 3
at Kolita and Kounkoun. These targets are located approximately 70km and 35km,
respectively north east of the current infrastructure.
At Geita in Tanzania, exploration activities continued to be concentrated in
five areas , namely, Matandani Pit; Area 3; Nyakabale-Prospect 30; the Lone
Cone -Nyankanga Gap and the Nyankanga foot wall. Infill drilling was also
started at the Star and Comet projects.
At Morila in Mali , a programme of four diamond drill holes was completed
during the quarter. These boreholes were targeted at extensions of the
mineralisation in prospective areas.
Pitting was initiated at Sokela, to the South West of the mine and two trenches
were dug in the Domba area to the North of the mine, in order to extract
samples for further evaluation.
At Sadiola, a fence line of three diamond holes were drilled inside the FE4
main pit. The objectives of this programme was to establish the potential of
sulphide mineralisation in the hard rock. The fence line of 22 diamond holes b
etween FE3-pit 3 and FE4 was completed and borehole SDFE3S - 022 was concluded,
as well as additional resource delineation drilling at Tambali South.
At Yatela, the final assay results for the "Deep Sulphide" drilling were
received and the results proved to be disappointing. Infill drilling at the
North West Extension to the Yatela deposit was started with 2,985m being
drilled from 66 boreholes.
At Navachab in Namibia, drilling continued in the Upper Schist to the north-
west of the main pit, and drilling on the west ramp of the main pit area was
completed, with further drilling planned for 2008. The drilling programme to
test vertical mineralisation along the Upper Schist-MDM contact in the main pit
area continued, while positive results were received from the drilling at Gecko
South and North. Drill access roads for additional drilling in the Gecko Far
North and for Anomaly 16 are currently being developed.
At Cripple Creek & Victor in the United States, exploration and development
drilling continued on the north side of the district near Schist Island and
Control Point.
GREENFIELDS EXPLORATION
Greenfields exploration activities continued in seven countries (Australia,
Colombia, the DRC, China, Laos, the Philippines, and Russia) during the fourth
quarter of 2007. A total of 378,014m of diamond drilling (DDH), reverse
circulation (RC), and aircore (AC) drilling was completed during the year, and
drill testing at existing priority targets and delineating new targets in
Australia, the DRC, Colombia, and China was undertaken.
A total of 6.95Moz attributable (9. 1 Moz on a 100% basis) of JORC -standard
Inferred and Indicated Resources were delineated by AngloGold Ashanti`s
greenfields exploration teams for the year ended December 2007 at three key
prospects globally, namely Tropicana (Western Australia), Mongbwalu (DRC) and
Gramalote (Colombia). This figure exceeds the market guidance of 6Moz given for
the discovery of new gold resources by greenfields exploration by the end of
2007. In addition, a significant drill programme and conceptual study is
concurrently being undertaken at AngloGold Ashanti`s 100% owned La Colosa
project in Colombia, with an additional Inferred Resources expected to be
announced for La Colosa during the first quarter of 2008.
In Australia, drilling continued at the Tropicana JV Project (AngloGold
Ashanti 70%, Independence Group 30%) during the fourth quarter and the
Pre-Feasibility Study (PFS) Resource Model was completed. An initial open
pit resource (Inferred and Indicated) of 62.8Mt @ 2.01g/t (using a 0.6g/t
cut-off) for 4.05Moz (100%basis) was announced on 3 December 2007. This
resource was calculated using the assay data from nearly 141,000m of diamond
and RC drilling, at drill hole spacings of a minimum of 50m by 50m. The
Tropicana PFS will focus on the economics of the open -pit mining of gold
mineralisation currently identified over a four kilometre strike length
at Tropicana -Havana, and will include additional mining, metallurgical,
and environmental studies. Reconnaissance exploration is continuing, in
parallel, throughout the remainder of the Tropicana JV tenement holding,
particularly in the Beachcomber sector.
Regional exploration and target generation activities continued in Colombia
during the fourth quarter, with DDH undertaken on five prospects. A conceptual
economic study was also completed on the bulk-tonnage Gramalote prospect
(Antioquia Department), where an Inferred Resource (100% basis) of 57. 8Mt @
1.14g/t (using a 0.5g/t cut-off), for a total of 2.12Moz has been delineated.
The Inferred Resource for Gramalote was calculated using the assay data derived
from the 13,060m of diamond drilling (in 43 drill holes), including adit
sampling completed to date. Ownership of the Gramalote project is currently 75%
AngloGold Ashanti, 25% B2Gold Corporation, however, a non-binding memorandum
of understanding has been signed with B2Gold in which B2Gold will have the
option to earn-in to a 51% interest in the Gramalote project in return for
taking the project through to Feasibility.
Resource delineation drilling continued during the fourth quarter at AngloGold
Ashanti`s 100% owned La Colosa porphyry gold prospect (Tolima Department). To
date, approximately 12,000m of diamond drilling (from 42 drill holes) has been
completed at La Colosa. Additional drilling and conceptual studies are both
being undertaken at La Colosa, with an Inferred Resource expected to be
announced by end of February 2008. AngloGold Ashanti and JV partners have also
completed first-pass diamond drilling on three other projects during the
quarter, with follow-up drilling expected to be undertaken on one of these
prospects during the first quarter of 2008.
Exploration activities undertaken in Concession 40 (DRC) included the infill
drilling of the main mineralised mylonite zones at Mongbwalu, together with the
initial evaluation of priority targets regionally. A conceptual economic study
for the Mongbwalu deposit was also completed during the quarter, and confirmed
an initial open pittable Inferred Resource of 33Mt @ 2.68g/t (using a 0.5g/t
cut -off) for 2.93Moz (2.52Moz attributable to AngloGold Ashanti) at Mongbwalu.
The initial resource area lies within a polygon that covers both the Adidi
sector and the Socumoto sector (which is located about 1km to the south-east of
the past- producing Adidi mine). The conceptual study utilised the assay data
from the 88,000m of DDH and RC drilling that has been completed at Mongbwalu by
AngloGold Ashanti between mid-2005 and November 2007.
In Russia, all efforts were focused on finalising the formation of the
Polymetal/AngloGold Ashanti Strategic Alliance. The registration of Zoloto
Taigi, the Russian management company, is expected to be completed during the
first quarter of 2008. Management of exploration activities in the four initial
project areas (Bogunay, Anenskoye, and Veduga in the Krasnoyarsk region, and
Aprelskovskoye in the Chita region) was gradually assumed by the Joint Venture
team in late 2007. The JV was also successful in acquiring the 390km 2
Sovremenie Prospect (Krasno yarsk Region) at auction.
In China , a short (1,053m) DDH programme was completed on the Yili-Yunlong CJV
prospect in Xinjiang Province (northwestern China). The primary objective of
the drill programme was to test the vertical continuity of outcropping
gold-copper mineralisation, however, drilling only succeeded in intersecting
weakly anomalous mineralisation at depth. At Red Valley (Qinghai), assay
results from the 3,300m DDH programme were also reviewed and confirmed the
presence of only low-grade gold mineralisation within the principal targets. As
a result, AngloGold Ashanti elected to withdraw from earning into the CJV.
Registration of the Pingwu CJV (Sichuan province) is proceeding according to
schedule, with systematic exploration expected to commence on the property in
the first quarter of 2008.
In the Philippines, the final tenement grant for Mapawa is still awaited from
the Manila Central Mines and Geosciences Bureau. Work continued on finalizing
the Mapawa and Outer Siana JV Agreements with Red 5 Limited.
In Laos, the Strategic Exploration Alliance between AngloGold Ashanti and
Oxiana Ltd expired on 13 December 2007 and has not been extended by mutual
agreement.
Mineral Resource and Ore Reserve
Mineral Resources and Ore Reserves are reported in accordance with the minimum
standard described by the Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves (The JORC Code, 2004 Edition), and
also conform to the standards set out in the South African Code for the
Reporting of Mineral Resources and Mineral Reserves (the SAMREC 2000 Code).
Mineral Resources are inclusive of the Ore Reserve component unless otherwise
stated.
Mineral Resources
The 2007 Mineral Resource increased by 34.1Moz before the subtraction of
depletion. After a depletion of 8. 1Moz , the net increase is 26. 0Moz to give
a total Mineral Resource of 207.6Moz . Mineral Resources were estimated at a
gold price of $700/oz in contrast to the $650/oz used in 2006. The increased
gold price resulted in 17.5Moz of added Mineral Resource while successful
exploration and revised modelling resulted in a further increase of 14.2Moz.
The remaining change of 2.5 Moz is the result of various other reasons.
Moz
December 2006 Mineral Resources 181.6
Reductions
Geita Increase in cost (1.6 )Moz and revision
to estimation methodology (0.6 )Moz (2.3)
TauTona Transfer of the Shaft Pillar Mineral
Resource to Mponeng (2.3)
Great Noligwa Transfer of the Shaft Pillar Mineral
Resource to Moab Khotsong (1.8)
Kopanang Decrease in grade as a result of the
modelling of new sampling and drilling
information (1.6)
Sadiola Increase in costs (0.6 )Moz and
revisions to methodology (0.1 )Moz (1.0)
Other Total of non significant changes (2.3)
Additions
Gramalote Successful Greenfields exploration 1.6
Moab Khotsong Transfers in from Great Noligwa and
improved economics 2.3
Mongbwalu Successful Greenfields exploration 2.5
Tropicana Successful Greenfields exploration 2.8
Obuasi Exploration below 50 level (1.3 )Moz
and completion of additional Mineral
Resource modelling above 50 level 4.0
Cripple Creek & Victor Primarily revisions to the methodology
with contribution from improved
economics and exploration 4.7
Mponeng Improvement in economics increased the
Ventersdorp Contact Reef Mineral
Resource to the West, the Carbon Leader
down to 4300mbd was included
on the back of a scoping study, material
was transferred in from TauTona
and revised modelling of the Carbon
Leader Reef 17.1
Other Total of non significant changes 2.3
December 2007 Mineral Resources 207.6
Ore Reserves
The 2007 Ore Reserve increased by 13.0Moz before the subtraction of depletion.
After a depletion of 6.8Moz , the net increase is 6.2Moz to give a total Ore
Reserve of 73.1Moz
A gold price of $600/oz was used for Ore Reserve estimates in contrast to the
$550/oz used in 200 6. The change in economic assumptions made from 200 6 to
2007 resulted in the Ore Reserve increasing by 6. 3Moz while exploration and
modelling resulted in an additional increase of 6. 7 Moz.
Moz
December 2006 Ore Reserves 66.9
Reductions
Geita Introduction of reconciliation factors
into planning ((0.8 )Moz), Flattening of
slopes (0.5 )Moz, modelling revisions (2.0)
(0.2)Moz and costs (0.1 )Moz
Sadiola Removal of Deep Sulphide project,
hard sulphide stockpiles and marginal
stockpiles primarily due to
economic factors (1.3)
Kopanang Drop in face value of 9% due to the
modelling of new drilling and sampling
information (0.5)
Other Total of non significant changes (1.7)
Additions
Iduapriem Purchase of an additional 15% of the
operation from the Ghanaian 0.2
Government and the IFC, to bring the
ownership to 100%
Savuka Improved economic factors increased the
Life of Mine by 8 years to 2017 0.5
Navachab Improved economics have brought in an
additional push back to the west
of the main pit 0.8
Siguiri Two new deposits (Kintinian and the
spent heap) were proved up by drilling 0.8
Cripple Creek & Victor Inclusion of the life extension project 1.0
Boddington The upgrade of inferred Mineral Resource
within the pit shell by drilling 1.0
Mponeng The inclusion of the Carbon Leader
Reef Project below 120 level 3.4
Moab Khotsong The inclusion of Project Zaaiplaats - a
deepening of Moab Khotsong to
access deeper Vaal Reef blocks to the
South West of the current mine 3.8
Other Total of non significant changes 0.3
December 2007 Ore Reserves 73.1
By-products
A number of by -products are recovered as a result of the processing of gold
Ore Reserves.
These include 19.5 thousand tonnes of uranium from the South African
operations, 0.23 million tonnes of copper from Australia, 0.47 million tonnes
of sulphur from Brazil and 31.0Moz of silver from Argentina.
Details of the by-product Mineral Resources and Ore Reserves are given in the
supplementary statistics document which is available on the corporate website,
www.AngloGoldAshanti.com.
External audit of Mineral Resource and Ore Reserve statements
During the course of the year, the AngloGold Ashanti 2006 Mineral Resources and
Ore Reserves for the following operations were submitted for external audit:
Mponeng
Geita
Obuasi
Morila
Sadiola
Yatela
Cuiaba
Cripple Creek & Victor
The company has been informed that the audit identified no material
shortcomings in the process by which AngloGold Ashanti`s Ore Reserves and
Mineral Resources were evaluated.
During 2007, it was resolved to audit Mineral Resources and Ore Reserves prior
to publication. As a result the 2007 Mineral Resources and Ore Reserves for the
following operations were audited late in 2007:
Sunrise Dam
Cerro Vanguardia
Great Noligwa
Kopanang
Project Zaaiplaats (Moab deepening project)
The company has been informed that these audits identified no material
shortcomings in the process by which AngloGold Ashanti`s Mineral Resources and
Ore Reserves were evaluated. It is the company`s intention to continue this
process so that its operations will be audited every three years on average.
Competent persons
The information in this report that relates to Exploration Results, Mineral
Resources or Ore Reserves is based on information compiled by the competent
persons listed below. They are either members of the Australian Institute of
Mining and Metallurgy (AusIMM) or recognised overseas professional
organisations. They are all full-time employees of the company.
The competent person for AngloGold Ashanti Exploration Results is:
E Roth, PhD (Economic Geology), BSc (Hons) (Geology), MAusIMM, 17 years
experience.
Competent persons for AngloGold Ashanti`s Mineral Resources are:
VA Chamberlain, MSc (Mining Engineering), BSc (Hons) (Geology), MAusIMM, 22
years experience. MF O`Brien, MSc (Mining Economics), BSc (Hons) (Geology), Dip
Data, Pr.Sci.Nat., MAusIMM, 28 years experience.
Competent persons for AngloGold Ashanti`s Ore Reserves are:
CE Brechtel, MSc (Mining Engineering), MAusIMM, 32 years experience. D L
Worrall, ACSM, MAusIMM, 27 years experience. J van Zyl Visser, MSc (Mining
Engineering), BSc (Mineral Resource Management), PLATO, 2 years 1 experience.
The competent persons ` consent to the inclusion of Exploration Results,
Mineral Resources and Ore Reserves information in this report, in the form and
context in which it appears.
Notes
A detailed breakdown of the Mineral Resources and Ore Reserves is provided in
the report entitled, "Supplementary Information: Mineral Resources and Ore
Reserves ", which is available in the annual report section of the AngloGold
Ashanti website (www.AngloGoldAshanti.com) and may be downloaded as a PDF file
using Adobe Acrobat Reader. This information is also available on request from
the AngloGold Ashanti offices at the addresses given at the back of this
report.
Mineral Resources by country
Metric Contained
Tonnes Grade gold Tons
million g/t tonnes million
as at 31 December 2007
South Africa Measured 28.0 13.98 391.9 30.6
Indicated 747.1 3.01 2,251.1 823.5
Inferred 37.7 10.92 411.8 41.6
Total 812.8 3.76 3,054.8 896.0
Argentina Measured 11.1 1.71 18.9 12.2
Indicated 21.1 3.73 78.8 23.3
Inferred 2.9 3.85 11.2 3.2
Total 35.1 3.10 108.8 38.7
Australia Measured 86.1 1.01 87.1 94.9
Indicated 315.9 0.87 273.4 348.3
Inferred 153.4 0.93 143.2 169.1
Total 555.5 0.91 503.7 612.3
Brazil Measured 12.5 7.48 93.1 13.7
Indicated 13.2 6.32 83.3 14.5
Inferred 27.4 6.98 191.3 30.2
Total 53.0 6.94 367.7 58.4
Colombia Measured 0.0 0.0 0.0
Indicated 0.0 0.0 0.0
Inferred 43.4 1.14 49.5 47.8
Total 43.4 1.14 49.5 47.8
Democratic
Republic of Measured 0.0 0.0 0.0
Congo Indicated 0.0 0.0 0.0
Inferred 29.2 2.68 78.5 32.2
Total 29.2 2.68 78.5 32.2
Ghana Measured 95.3 5.18 493.7 105.0
Indicated 82.4 3.91 322.4 90.8
Inferred 45.3 7.34 332.6 49.9
Total 222.9 5.15 1,148.7 245.7
Guinea Measured 38.7 0.72 27.7 42.7
Indicated 92.7 0.78 72.5 102.1
Inferred 58.1 0.92 53.6 64.1
Total 189.5 0.81 153.8 208.9
Mali Measured 16.5 1.66 27.4 18.2
Indicated 16.2 3.09 50.0 17.8
Inferred 6.1 2.36 14.3 6.7
Total 38.8 2.37 91.7 42.7
Namibia Measured 11.7 0.79 9.2 12.8
Indicated 59.3 1.31 77.5 65.3
Inferred 45.2 1.12 50.9 49.9
Total 116.2 1.18 137.6 128.1
Tanzania Measured 6.3 1.20 7.6 7.0
Indicated 84.4 3.72 314.1 93.1
Inferred 18.6 3.54 65.8 20.5
Total 109.3 3.5 4 387.4 120.5
Imperial Contained
Grade gold
oz/t million oz
as at 31 December 2007
South Africa Measured 0.408 12.601
Indicated 0.088 72.373
Inferred 0.319 13.239
Total 0.110 98.214
Argentina Measured 0.050 0.607
Indicated 0.109 2.533
Inferred 0.112 0.359
Total 0.090 3.499
Australia Measured 0.030 2.801
Indicated 0.025 8.789
Inferred 0.027 4.605
Total 0.026 16.194
Brazil Measured 0.218 2.993
Indicated 0.184 2.679
Inferred 0.204 6.150
Total 0.202 11.823
Colombia Measured 0.000
Indicated 0.000
Inferred 0.033 1.591
Total 0.033 1.591
Democratic Republic of Measured 0.000
Congo Indicated 0.000
Inferred 0.078 2.523
Total 0.078 2.523
Ghana Measured 0.151 15.872
Indicated 0.114 10.366
Inferred 0.214 10.693
Total 0.150 36.930
Guinea Measured 0.021 0.891
Indicated 0.023 2.330
Inferred 0.027 1.724
Total 0.024 4.945
Mali Measured 0.048 0.882
Indicated 0.090 1.607
Inferred 0.069 0.461
Total 0.069 2.950
Namibia Measured 0.023 0.297
Indicated 0.038 2.490
Inferred 0.033 1.636
Total 0.035 4.423
Tanzania Measured 0.035 0.243
Indicated 0.109 10.097
Inferred 0.103 2.114
Total 0.103 12.454
Metric Contained
Tonnes Grade gold Tons
million g/t tonnes million
as at 31 December 2007
United States of
America Measured 250.1 0.81 203.3 275.7
Indicated 173.5 0.73 126.1 191.2
Inferred 70.6 0.65 45.9 77.8
Total 494.1 0.76 375.4 544.7
Total Measured 556.3 2.44 1,360.0 613.2
Indicated 1,605.7 2.27 3,649.0 1,770.0
Inferred 537.9 2.69 1,448.6 592.9
Total 2,699.9 2.39 6,457.5 2,976.1
Imperial Contained
Grade gold
oz/t million oz
as at 31 December 2007
United States of America Measured 0.024 6.537
Indicated 0.021 4.054
Inferred 0.019 1.477
Total 0.022 12.068
Total Measured 0.071 43.724
Indicated 0.066 117.319
Inferred 0.079 46.573
Total 0.070 207.615
Ore Reserves by country (attributable)
Metric Contained
Tonnes Grade gold Tons
million g/t tonnes million
as at 31 December 2007
South Africa Proved 21.5 7.58 162.8 23.7
Probable 216.4 4.12 891.2 238.6
Total 237.9 4.43 1,054.0 262.3
Argentina Proved 1.0 6.08 6.3 1.2
Probable 7.9 6.58 52.1 8.7
Total 9.0 6.52 58.4 9.9
Australia Proved 68.6 1.14 78.5 75.7
Probable 164.8 0.88 144.7 181.7
Total 233.4 0.96 223.2 257.3
Brazil Proved 8.9 6.75 60.1 9.8
Probable 4.9 5.99 29.1 5.4
Total 13.8 6.48 89.3 15.2
Ghana Proved 68.8 2.96 203.7 75.8
Probable 28.3 4.62 130.5 31.2
Total 97.0 3.44 334.3 107.0
Guinea Proved 21.3 0.59 12.6 23.5
Probable 89.6 0.77 69.2 98.7
Total 110.9 0.74 81.8 122.2
Mali Proved 9.0 2.18 19.7 10.0
Probable 7.1 2.57 18.3 7.9
Total 16.2 2.35 38.1 17.8
Namibia Proved 5.8 1.00 5.8 6.4
Probable 27.3 1.46 39.9 30.1
Total 33.1 1.38 45.6 36.5
Tanzania Proved 5.6 1.01 5.7 6.2
Probable 62.4 3.14 195.9 68.7
Total 68.0 2.96 201.6 74.9
United States of
America Proved 107.9 0.96 103.8 118.9
Probable 47.6 0.92 44.0 52.5
Total 155.5 0.95 147.8 171.4
Total Proved 318.5 2.07 659.1 351.0
Probable 656.3 2.46 1,614.9 723.4
Total 974.7 2.33 2,274.0 1,074.4
Imperial Contained
Grade gold
oz/t million oz
as at 31 December 2007
South Africa Proved 0.221 5.233
Probable 0.120 28.652
Total 0.129 33.886
Argentina Proved 0.177 0.204
Probable 0.192 1.674
Total 0.190 1.879
Australia Proved 0.033 2.524
Probable 0.026 4.653
Total 0.028 7.176
Brazil Proved 0.197 1.934
Probable 0.175 0.937
Total 0.189 2.870
Ghana Proved 0.086 6.550
Probable 0.135 4.197
Total 0.100 10.747
Guinea Proved 0.017 0.405
Probable 0.023 2.225
Total 0.022 2.629
Mali Proved 0.064 0.634
Probable 0.075 0.590
Total 0.069 1.224
Namibia Proved 0.029 0.186
Probable 0.043 1.281
Total 0.040 1.467
Tanzania Proved 0.030 0.183
Probable 0.092 6.298
Total 0.086 6.481
United States of America Proved 0.028 3.339
Probable 0.027 1.414
Total 0.028 4.753
Total Proved 0.060 21.191
Probable 0.072 51.921
Total 0.068 73.112
Group operating results
Quarter ended
Dec Sep
2007 2007
Unaudited
Rand / Metric
OPERATING RESULTS 1
UNDERGROUND OPERATION
Milled - 000 tonnes / - 000 tons 3,236 3,384
Yield -g/t / - oz / t 6.96 7.11
Gold produced - kg / - oz (000) 22,505 24,066
SURFACE AND DUMP
RECLAMATION
Treated - 000 tonnes / - 000 tons 2,987 2,976
Yield -g/t / - oz / t 0.45 0.48
Gold produced - kg / - oz (000) 1,339 1,429
OPEN-PIT OPERATION
Mined - 000 tonnes / - 000 tons 47,549 41,999
Treated - 000 tonnes / - 000 tons 6,455 6,456
Stripping ratio - t (mined total
- mined ore) / t mined ore 4.62 4.20
Yield -g/t / - oz / t 2.33 2.49
Gold in ore - kg / - oz (000) 13,711 15,059
Gold produced - kg / - oz (000) 15,047 16,064
HEAP LEACH OPERATION
Mined - 000 tonnes / - 000 tons 14,965 14,807
Placed 2 - 000 tonnes / - 000 tons 5,852 5,636
Stripping ratio - t (mined total
- mined ore) / t mined ore 1.61 1.53
Yield 3 -g/t / - oz / t 0.70 0.66
Gold placed 4 - kg / - oz (000) 4,115 3,706
Gold produced - kg / - oz (000) 3,665 3,052
TOTAL
Gold produced - kg / - oz (000) 42,556 44,611
Gold sold - kg / - oz (000) 42,278 45,768
Price received - R / kg / - $ / oz - sold149,312 141,400
Total cash costs - R / kg / - $ / oz -
produced 87,744 81,186
Total production
costs - R / kg / - $ / oz -
produced 122,344 107,239
PRODUCTIVITY PER
EMPLOYEE
Target -g / - oz 404 409
Actual -g / - oz 342 361
CAPITAL EXPENDITURE - Rm / - $m 2,315 1,733
Year ended
Dec Dec
2006 2007
Unaudited
Rand / Metric
OPERATING RESULTS 1
UNDERGROUND OPERATION
Milled - 000 tonnes / - 000 tons 3,296 13,112
Yield -g/t / - oz / t 7.47 6.99
Gold produced - kg / - oz (000) 24,611 91,684
SURFACE AND DUMP
RECLAMATION
Treated - 000 tonnes / - 000 tons 3,029 12,429
Yield -g/t / - oz / t 0.52 0.49
Gold produced - kg / - oz (000) 1,569 6,142
OPEN-PIT OPERATION
Mined - 000 tonnes / - 000 tons 44,614 172,487
Treated - 000 tonnes / - 000 tons 7,242 25,312
Stripping ratio - t (mined total
- mined ore) / t mined ore 4.51 4.48
Yield -g/t / - oz / t 2.13 2.34
Gold in ore - kg / - oz (000) 9,240 55,463
Gold produced - kg / - oz (000) 15,451 59,227
HEAP LEACH OPERATION
Mined - 000 tonnes / - 000 tons 15,534 59,720
Placed 2 - 000 tonnes / - 000 tons 5,888 22,341
Stripping ratio - t (mined total
- mined ore) / t mined ore 1.84 1.77
Yield 3 -g/t / - oz / t 0.73 0.73
Gold placed 4 - kg / - oz (000) 4,295 16,242
Gold produced - kg / - oz (000) 4,066 13,312
TOTAL
Gold produced - kg / - oz (000) 45,697 170,365
Gold sold - kg / - oz (000) 45,866 170,265
Price received - R / kg / - $ / oz
- sold1 35,628 142,107
Total cash costs - R / kg / - $ / oz
- produced 72,422 80,490
Total production
costs - R / kg / - $ / oz
- produced 98,145 107,415
PRODUCTIVITY PER
EMPLOYEE
Target -g / - oz 438 396
Actual -g / - oz 372 349
CAPITAL EXPENDITURE - Rm / - $m 1,861 7,444
Dec
2006
Unaudited
Rand / Metric
OPERATING RESULTS 1
UNDERGROUND OPERATION
Milled - 000 tonnes / - 000 tons 13,489
Yield -g/t / - oz / t 7.20
Gold produced - kg / - oz (000) 97,112
SURFACE AND DUMP
RECLAMATION
Treated - 000 tonnes / - 000 tons 12,414
Yield -g/t / - oz / t 0.50
Gold produced - kg / - oz (000) 6,246
OPEN-PIT OPERATION
Mined - 000 tonnes / - 000 tons 173,178
Treated - 000 tonnes / - 000 tons 26,739
Stripping ratio - t (mined total
- mined ore) / t mined ore 4.82
Yield -g/t / - oz / t 2.14
Gold in ore - kg / - oz (000) 39,983
Gold produced - kg / - oz (000) 57,334
HEAP LEACH OPERATION
Mined - 000 tonnes / - 000 tons 63,519
Placed 2 - 000 tonnes / - 000 tons 23,329
Stripping ratio - t (mined total
- mined ore) / t mined ore 1.83
Yield 3 -g/t / - oz / t 0.78
Gold placed 4 - kg / - oz (000) 18,162
Gold produced - kg / - oz (000) 14,561
TOTAL
Gold produced - kg / - oz (000) 175,253
Gold sold - kg / - oz (000) 173,639
Price received - R / kg / - $ / oz - sold 126,038
Total cash costs - R / kg / - $ / oz - produced 67,133
Total production
costs - R / kg / - $ / oz - produced 90,345
PRODUCTIVITY PER
EMPLOYEE
Target -g / - oz 412
Actual -g / - oz 358
CAPITAL EXPENDITURE - Rm / - $m 5,533
Quarter ended
Dec Sep
Unaudited
Dollar / Imperial
2007 2007
OPERATING RESULTS 1
UNDERGROUND OPERATION
Milled - 000 tonnes / - 000 tons 3,567 3,730
Yield -g/t / - oz / t 0.203 0.207
Gold produced - kg / - oz (000) 723 774
SURFACE AND DUMP
RECLAMATION
Treated - 000 tonnes / - 000 tons 3,293 3,280
Yield -g/t / - oz / t 0.013 0.014
Gold produced - kg / - oz (000) 43 46
OPEN-PIT OPERATION
Mined - 000 tonnes / - 000 tons 52,414 46,296
Treated - 000 tonnes / - 000 tons 7,115 7,116
Stripping ratio - t (mined total
- mined ore) / t mined ore 4.62 4.20
Yield -g/t / - oz / t 0.068 0.073
Gold in ore - kg / - oz (000) 441 484
Gold produced - kg / - oz (000) 484 516
HEAP LEACH OPERATION
Mined - 000 tonnes / - 000 tons 16,496 16,322
Placed 2 - 000 tonnes / - 000 tons 6,450 6,213
Stripping ratio - t (mined total
- mined ore) / t mined ore 1.61 1.53
Yield 3 -g/t / - oz / t 0.021 0.019
Gold placed 4 - kg / - oz (000) 132 119
Gold produced - kg / - oz (000) 118 98
TOTAL
Gold produced - kg / - oz (000) 1,368 1,434
Gold sold - kg / - oz (000) 1,359 1,471
Price received - R / kg / - $ / oz - sold 687 621
Total cash costs - R / kg / - $ / oz -
produced 404 357
Total production
costs - R / kg / - $ / oz
- produced 563 471
PRODUCTIVITY PER
EMPLOYEE
Target -g / - oz 12.99 13.16
Actual -g / - oz 10.99 11.62
CAPITAL EXPENDITURE - Rm / - $m 339 245
Year ended
Dec Dec
2006 2007
Unaudited
Dollar / Imperial
OPERATING RESULTS 1
UNDERGROUND OPERATION
Milled - 000 tonnes / - 000 tons 3,633 14,454
Yield -g/t / - oz / t 0.218 0.204
Gold produced - kg / - oz (000) 791 2,948
SURFACE AND DUMP
RECLAMATION
Treated - 000 tonnes / - 000 tons 3,339 13,701
Yield -g/t / - oz / t 0.015 0.014
Gold produced - kg / - oz (000) 50 197
OPEN-PIT OPERATION
Mined - 000 tonnes / - 000 tons 49,179 190,134
Treated - 000 tonnes / - 000 tons 7,983 27,901
Stripping ratio - t (mined total
- mined ore) / t mined ore 4.51 4.48
Yield -g/t / - oz / t 0.062 0.068
Gold in ore - kg / - oz (000) 297 1,783
Gold produced - kg / - oz (000) 497 1,904
HEAP LEACH OPERATION
Mined - 000 tonnes / - 000 tons 17,124 65,830
Placed 2 - 000 tonnes / - 000 tons 6,490 24,627
Stripping ratio - t (mined total
- mined ore) / t mined ore 1.84 1.77
Yield 3 -g/t / - oz / t 0.021 0.021
Gold placed 4 - kg / - oz (000) 138 522
Gold produced - kg / - oz (000) 131 428
TOTAL
Gold produced - kg / - oz (000) 1,469 5,477
Gold sold - kg / - oz (000) 1,475 5,474
Price received - R / kg / - $ / oz - sold 578 629
Total cash costs - R / kg / - $ / oz -
produced 309 357
Total production
costs - R / kg / - $ / oz -
produced 419 476
PRODUCTIVITY PER
EMPLOYEE
Target -g / - oz 14.07 12.74
Actual -g / - oz 11.97 11.23
CAPITAL EXPENDITURE - Rm / - $m 260 1,059
Dec
2006
Unaudited
Dollar / Imperial
OPERATING RESULTS 1
UNDERGROUND OPERATION
Milled - 000 tonnes / - 000 tons 14,870
Yield -g/t / - oz / t 0.210
Gold produced - kg / - oz (000) 3,123
SURFACE AND DUMP
RECLAMATION
Treated - 000 tonnes / - 000 tons 13,684
Yield -g/t / - oz / t 0.015
Gold produced - kg / - oz (000) 201
OPEN-PIT OPERATION
Mined - 000 tonnes / - 000 tons 190,897
Treated - 000 tonnes / - 000 tons 29,475
Stripping ratio - t (mined total
- mined ore) / t mined ore 4.82
Yield -g/t / - oz / t 0.063
Gold in ore - kg / - oz (000) 1,285
Gold produced - kg / - oz (000) 1,843
HEAP LEACH OPERATION
Mined - 000 tonnes / - 000 tons 70,018
Placed 2 - 000 tonnes / - 000 tons 25,716
Stripping ratio - t (mined total
- mined ore) / t mined ore 1.83
Yield 3 -g/t / - oz / t 0.024
Gold placed 4 - kg / - oz (000) 584
Gold produced - kg / - oz (000) 468
TOTAL
Gold produced - kg / - oz (000) 5,635
Gold sold - kg / - oz (000) 5,583
Price received - R / kg / - $ / oz - sold 577
Total cash costs - R / kg / - $ / oz - produced 308
Total production
costs - R / kg / - $ / oz - produced 414
PRODUCTIVITY PER
EMPLOYEE
Target -g / - oz 13.25
Actual -g / - oz 11.49
CAPITAL EXPENDITURE - Rm / - $m 817
1 Effective 1 September 2007, the minority shareholdings of the International
Finance Corporation (10%) and Government of Ghana (5%) were acquired and
Iduapriem is now fully owned by AngloGold Ashanti.
2 Tonnes (Tons) placed on to leach pad.
3 Gold placed / tonnes (tons) placed.
4 Gold placed into leach pad inventory.
Rounding of figures may result in computational discrepancies.
Group income statement
Quarter Quarter
ended ended
December September
2007 2007
SA Rand million Notes Unaudited Unaudited
Revenue 2 6,428 6,613
Gold income 5,784 6,383
Cost of sales 3 (5,215) (4,924)
(Loss) profit on non-hedge derivatives
and other commodity contracts (2,923) (2,338)
Gross (loss) profit (2,354) (879)
Corporate administration and other
expenses (209) (252)
Market development costs (40) (26)
Exploration costs (241) (219)
Other operating income (expenses) 4 22 (65)
Operating special items 5 (288) 48
Operating (loss) profit (3,110) (1,393)
Dividend received from other investments - 16
Interest received 89 89
Exchange gain (loss) 23 (6)
Fair value adjustment on option component
of convertible bond 115 (140)
Finance costs and unwinding of obligations (231) (230)
Share of associates` (loss) profit (6) (104)
(Loss) profit before taxation (3,120) (1,768)
Taxation 6 (73) (161)
(Loss) profit after taxation from
continuing operations (3,193) (1,928)
Discontinued operations
Profit (loss) for the period from
discontinued operations 7 41 (24)
(Loss) profit for the period (3,152) (1,952)
Allocated as follows:
Equity shareholders (3,199) (2,003)
Minority interest 47 51
(3,152) (1,952)
Basic 1 and diluted 2 (loss) earnings per
ordinary share (cents)
(Loss) profit from continuing operations (1,151) (703)
Profit (loss) from discontinued operations 15 (9)
(Loss) profit (1,136) (712)
Dividends 3
- Rm
- cents per Ordinary share
- cents per E Ordinary share
Quarter Year Year
ended ended ended
December December December
2006 2007 2006
SA Rand million Unaudited Unaudited Audited
Revenue 5,975 24,383 21,104
Gold income 5,634 23,052 20,137
Cost of sales (4,477) (18,495) (15,482)
(Loss) profit on non-hedge derivatives
and other commodity contracts 482 (5,081) (1,955)
Gross (loss) profit 1,639 (524) 2,700
Corporate administration and other
expenses (174) (885) (567)
Market development costs (32) (115) (108)
Exploration costs (116) (839) (417)
Other operating income (expenses) (26) (134) (129)
Operating special items (98) (139) (130)
Operating (loss) profit 1,193 (2,636) 1,349
Dividend received from other
investments - 16 -
Interest received 69 312 218
Exchange gain (loss) (11) 4 (17)
Fair value adjustment on option
component of convertible bond (210) 333 137
Finance costs and unwinding of
obligations (246) (880) (822)
Share of associates` (loss) profit 2 (164) (6)
(Loss) profit before taxation 797 (3,015) 859
Taxation (676) (1,039) (1,232)
(Loss) profit after taxation from
continuing operations 120 (4,054) (373)
Discontinued operations
Profit (loss) for the period from
discontinued operations (1) 7 (12)
(Loss) profit for the period 119 (4,047) (385)
Allocated as follows:
Equity shareholders 69 (4,269) (587)
Minority interest 50 222 202
119 (4,047) (385)
Basic 1 and diluted 2 (loss) earnings
per ordinary share (cents)
(Loss) profit from continuing
operations 25 (1,519) (211)
Profit (loss) from discontinued
operations - 3 (4)
(Loss) profit 25 (1,516) (215)
Dividends 3
- Rm 399 1,246
- cents per Ordinary share 143 450
- cents per E Ordinary share 72 120
1 Calculated on the basic weighted average number of ordinary shares.
2 Calculated on the diluted weighted average number of ordinary shares. The
impact of the diluted earnings per share is anti-dilutive and therefore equal
to the basic earnings per share.
3 The current period is only indicative.
Rounding of figures may result in computational discrepancies.
Group income statement
Quarter Quarter
ended ended
December September
2007 2007
US Dollar million Notes Unaudited Unaudited
Revenue 2 951 934
Gold income 856 902
Cost of sales 3 (771) (696)
Loss on non-hedge derivatives and other
commodity contracts (440) (365)
Gross (loss) profit (355) (159)
Corporate administration and other
expenses (31) (36)
Market development costs (6) (4)
Exploration costs (36) (31)
Other operating income (expenses) 4 3 (9)
Operating special items 5 (42) 7
Operating (loss) profit (467) (232)
Dividend received from other investments - 2
Interest received 13 13
Exchange gain (loss) 3 (1)
Fair value adjustment on option component
of convertible bond 17 (20)
Finance costs and unwinding of obligations (34) (32)
Share of associates` loss (1) (14)
(Loss) profit before taxation (469) (284)
Taxation 6 (11) (21)
Loss after taxation from continuing
operations (481) (306)
Discontinued operations
Profit (loss) for the period from
discontinued operations 7 6 (3)
Loss for the period (475) (309)
Allocated as follows:
Equity shareholders (482) (316)
Minority interest 7 7
(475) (309)
Basic 1 and diluted 2 (loss) earnings per
ordinary share (cents)
Loss from continuing operations (173) (111)
Profit (loss) from discontinued operations 2 (1)
Loss (171) (112)
Dividends 3
- $m
- cents per Ordinary share
- cents per E Ordinary share
Quarter Year Year
ended ended ended
December December December
2006 2007 2006
US Dollar million Unaudited Unaudited Audited
Revenue 818 3,472 3,106
Gold income 770 3,280 2,964
Cost of sales (612) (2,636) (2,282)
Loss on non-hedge derivatives and
other commodity contracts (25) (780) (239)
Gross (loss) profit 133 (136) 443
Corporate administration and other
expenses (24) (126) (84)
Market development costs (4) (16) (16)
Exploration costs (16) (120) (61)
Other operating income (expenses) (4) (20) (18)
Operating special items (14) (21) (18)
Operating (loss) profit 71 (439) 246
Dividend received from other
investments - 2 -
Interest received 10 45 32
Exchange gain (loss) (2) 1 (2)
Fair value adjustment on option
component of convertible bond (28) 47 16
Finance costs and unwinding of
obligations (34) (125) (123)
Share of associates` loss - (23) (1)
(Loss) profit before taxation 17 (492) 168
Taxation (82) (145) (180)
Loss after taxation from continuing
operations (65) (637) (12)
Discontinued operations
Profit (loss) for the period from
discontinued operations - 1 (2)
Loss for the period (65) (636) (14)
Allocated as follows:
Equity shareholders (72) (668) (44)
Minority interest 7 32 30
(65) (636) (14)
Basic 1 and diluted 2 (loss) earnings
per ordinary share (cents)
Loss from continuing operations (26) (237) (15)
Profit (loss) from discontinued
operations - - (1)
Loss (26) (237) (16)
Dividends 3
- $m 54 171
- cents per Ordinary share 20 62
- cents per E Ordinary share 10 16
1 Calculated on the basic weighted average number of ordinary shares.
2 Calculated on the diluted weighted average number of ordinary shares. The
impact of the diluted earnings per share is anti-dilutive and therefore equal
to the basic earnings per share.
3 Dividends are translated at actual rates on date of payment. The current
period is only indicative.
Rounding of figures may result in computational discrepancies.
Group balance sheet
As at As at As at
December September December
2007 2007 2006
SA Rand million Notes Unaudited Unaudited Audited
ASSETS
Non-current assets
Tangible assets 45,783 44,838 42,382
Intangible assets 2,996 3,036 2,909
Investments in associates 140 141 300
Other investments 795 839 884
Inventories 2,217 2,275 2,006
Trade and other receivables 566 477 405
Derivatives - - 45
Deferred taxation 543 499 432
Other non-current assets 278 300 313
53,318 52,406 49,676
Current assets
Inventories 4,603 4,156 3,424
Trade and other receivables 1,587 1,521 1,300
Derivatives 3,516 4,078 4,546
Current portion of other
non-current assets 2 5 5
Cash restricted for use 264 294 75
Cash and cash equivalents 3,381 3,447 3,467
13,353 13,500 12,817
Non-current assets held for sale 210 201 123
13,563 13,701 12,940
TOTAL ASSETS 66,881 66,107 62,616
EQUITY AND LIABILITIES
Share capital and premium 10 22,371 22,265 22,083
Retained earnings and other
reserves 11 (6,167) (2,791) (1,188)
Shareholders` equity 16,204 19,473 20,895
Minority interests 12 429 401 436
Total equity 16,633 19,874 21,331
Non-current liabilities
Borrowings 10,441 7,415 9,963
Environmental rehabilitation
and other provisions 3,361 3,003 2,785
Provision for pension and
post-retirement benefits 1,208 1,207 1,181
Trade, other payables and
deferred income 79 39 150
Derivatives 1,110 1,321 1,984
Deferred taxation 7,159 7,478 7,722
23,358 20,462 23,785
Current liabilities
Current portion of borrowings 2,309 4,358 413
Trade, other payables and
deferred income 4,549 4,466 3,701
Derivatives 18,763 15,421 12,152
Taxation 1,269 1,525 1,234
26,890 25,770 17,500
Total liabilities 50,248 46,232 41,285
TOTAL EQUITY AND LIABILITIES 66,881 66,107 62,616
Net asset value - cents per
share 5,907 7,073 7,607
Rounding of figures may result in computational discrepancies.
Group balance sheet
As at As at As at
December September December
2007 2007 2006
US Dollar million Notes Unaudited Unaudited Audited
ASSETS
Non-current assets
Tangible assets 6,722 6,527 6,054
Intangible assets 440 442 415
Investments in associates 21 21 43
Other investments 117 122 126
Inventories 325 331 287
Trade and other receivables 83 69 58
Derivatives - - 6
Deferred taxation 80 73 62
Other non-current assets 41 44 44
7,829 7,629 7,095
Current assets
Inventories 676 605 489
Trade and other receivables 233 222 185
Derivatives 516 594 649
Current portion of other
non-current assets - 1 1
Cash restricted for use 39 42 11
Cash and cash equivalents 496 502 495
1,960 1,965 1,830
Non-current assets held for sale 31 29 18
1,991 1,994 1,848
TOTAL ASSETS 9,820 9,623 8,943
EQUITY AND LIABILITIES
Share capital and premium 10 3,285 3,241 3,154
Retained earnings and other
reserves 11 (906) (406) (169)
Shareholders` equity 2,379 2,835 2,985
Minority interests 12 63 58 62
Total equity 2,442 2,893 3,047
Non-current liabilities
Borrowings 1,533 1,079 1,423
Environmental rehabilitation
and other provisions 494 437 398
Provision for pension and
post-retirement benefits 177 176 169
Trade, other payables and
deferred income 12 6 21
Derivatives 163 192 283
Deferred taxation 1,051 1,088 1,103
3,430 2,978 3,397
Current liabilities
Current portion of borrowings 339 634 59
Trade, other payables and
deferred income 668 651 528
Derivatives 2,755 2,245 1,736
Taxation 186 222 176
3,948 3,752 2,499
Total liabilities 7,378 6,730 5,896
TOTAL EQUITY AND LIABILITIES 9,820 9,623 8,943
Net asset value - cents per
share 867 1,030 1,087
Rounding of figures may result in computational discrepancies.
Group cash flow statement
Quarter Quarter Quarter
ended ended ended
December September December
2007 2007 2006
SA Rand million Unaudited Unaudited Unaudited
Cash flows from operating activities
Receipts from customers 6,302 6,498 5,906
Payments to suppliers and employees (4,382) (4,277) (3,289)
Cash generated from operations 1,920 2,221 2,617
Cash generated (utilised) by
discontinued operations 10 (6) 7
Dividends received from associates 1 - -
Taxation paid (664) (123) (553)
Net cash inflow from operating
activities 1,268 2,092 2,071
Cash flows from investing activities
Capital expenditure (2,284) (1,733) (1,861)
Acquisition of assets 3 - -
Proceeds from disposal of tangible
assets 24 65 322
Proceeds from disposal of assets of
discontinued operations - 1 23
Other investments acquired (207) (7) (47)
Associate loans and acquisitions - - 4
Proceeds from disposal of investments 69 137 2
Dividend received from other
investments - 16 -
Decrease (increase) in cash
restricted for use 37 (126) (29)
Interest received 74 77 55
Loans advanced - - (5)
Repayment of loans advanced - 1 2
Net cash outflow from investing
activities (2,284) (1,570) (1,533)
Cash flows from financing activities
Proceeds from issue of share capital 88 19 7
Share issue expenses - - -
Proceeds from borrowings 3,828 864 619
Repayment of borrowings (2,907) (208) (321)
Finance costs (25) (241) (82)
Dividends paid (17) (277) (55)
Net cash inflow (outflow) from
financing activities 967 158 168
Net (decrease) increase in cash and
cash equivalents (49) 680 706
Translation (17) (24) (109)
Cash and cash equivalents at
beginning of period 3,447 2,792 2,871
Net cash and cash equivalents at end
of period 3,381 3,447 3,467
Cash generated from operations
(Loss) profit before taxation (3,120) (1,768) 797
Adjusted for:
Movement on non-hedge derivatives and
other commodity contracts 3,719 2,725 304
Amortisation of tangible assets 1,103 1,082 1,215
Finance costs and unwinding of
obligations 231 230 246
Deferred stripping (73) (128) (34)
Interest receivable (89) (89) (69)
Operating special items 288 (48) 98
Amortisation of intangible assets 3 3 4
Fair value adjustment on option
components of convertible bond (115) 140 210
Environmental, rehabilitation and
other expenditure 271 44 (133)
Other non-cash movements 90 132 99
Movements in working capital (388) (103) (120)
1,920 2,221 2,617
Movements in working capital
(Increase) decrease in inventories (453) (215) 166
(Increase) decrease in trade and
other receivables (260) (32) 181
Increase (decrease) in trade and
other payables 326 144 (467)
(388) (103) (120)
Year Year
ended ended
December December
2007 2006
SA Rand million Unaudited Audited
Cash flows from operating activities
Receipts from customers 24,059 21,237
Payments to suppliers and employees (16,144) (12,438)
Cash generated from operations 7,915 8,799
Cash generated (utilised) by discontinued operations (14) (6)
Dividends received from associates 1 -
Taxation paid (1,664) (968)
Net cash inflow from operating activities 6,238 7,825
Cash flows from investing activities
Capital expenditure (7,198) (5,533)
Acquisition of assets (284) -
Proceeds from disposal of tangible assets 197 393
Proceeds from disposal of assets of discontinued
operations 9 63
Other investments acquired (190) (471)
Associate loans and acquisitions 1 (63)
Proceeds from disposal of investments 174 449
Dividend received from other investments 16 -
Decrease (increase) in cash restricted for use (177) (19)
Interest received 260 173
Loans advanced (7) (5)
Repayment of loans advanced 10 38
Net cash outflow from investing activities (7,189) (4,975)
Cash flows from financing activities
Proceeds from issue of share capital 247 3,068
Share issue expenses (4) (32)
Proceeds from borrowings 5,619 1,525
Repayment of borrowings (3,440) (3,957)
Finance costs (511) (586)
Dividends paid (1,050) (913)
Net cash inflow (outflow) from financing activities 861 (895)
Net (decrease) increase in cash and cash equivalents (90) 1,955
Translation 4 184
Cash and cash equivalents at beginning of period 3,467 1,328
Net cash and cash equivalents at end of period 3,381 3,467
Cash generated from operations
(Loss) profit before taxation (3,015) 859
Adjusted for:
Movement on non-hedge derivatives and other
commodity contracts 7,232 4,590
Amortisation of tangible assets 4,143 4,059
Finance costs and unwinding of obligations 880 822
Deferred stripping (431) (528)
Interest receivable (312) (218)
Operating special items 139 161
Amortisation of intangible assets 14 13
Fair value adjustment on option components of
convertible bond (333) (137)
Environmental, rehabilitation and other expenditure 287 (160)
Other non-cash movements 549 213
Movements in working capital (1,238) (875)
7,915 8,799
Movements in working capital
(Increase) decrease in inventories (1,489) (1,852)
(Increase) decrease in trade and other receivables (501) (27)
Increase (decrease) in trade and other payables 752 1,004
(1,238) (875)
Rounding of figures may result in computational discrepancies.
Group cash flow statement
Quarter Quarter Quarter
ended ended ended
December September December
2007 2007 2006
US Dollar million Unaudited Unaudited Unaudited
Cash flows from operating activities
Receipts from customers 937 918 804
Payments to suppliers and employees (655) (605) (450)
Cash generated from operations 282 313 354
Cash generated (utilised) by
discontinued operations 2 (1) 1
Dividends received from associates - - -
Taxation paid (96) (18) (80)
Net cash inflow from operating
activities 188 295 275
Cash flows from investing activities
Capital expenditure (334) (245) (260)
Acquisition of assets - - -
Proceeds from disposal of tangible
assets 4 9 46
Proceeds from disposal of assets of
discontinued operations - - 3
Other investments acquired (30) (1) (8)
Associate loans and acquisitions - - 1
Proceeds from disposal of investments 10 19 -
Dividend received from other
investments - 2 -
Decrease (increase) in cash
restricted for use 5 (18) (5)
Interest received 11 11 7
Loans advanced - - (1)
Repayment of loans advanced - - -
Net cash outflow from investing
activities (334) (222) (216)
Cash flows from financing activities
Proceeds from issue of share capital 12 3 1
Share issue expenses - - -
Proceeds from borrowings 548 122 86
Repayment of borrowings (415) (29) (29)
Finance costs (4) (34) (10)
Dividends paid (2) (38) (8)
Net cash inflow (outflow) from
financing activities 139 23 40
Net (decrease) increase in cash and
cash equivalents (7) 95 99
Translation 1 9 26
Cash and cash equivalents at
beginning of period 502 398 370
Net cash and cash equivalents at end
of period 496 502 495
Cash generated from operations
(Loss) profit before taxation (469) (284) 17
Adjusted for:
Movement on non-hedge derivatives and
other commodity contracts 558 420 134
Amortisation of tangible assets 164 153 167
Finance costs and unwinding of
obligations 34 32 34
Deferred stripping (11) (19) (12)
Interest receivable (13) (13) (10)
Operating special items 42 (7) 14
Amortisation of intangible assets - - -
Fair value adjustment on option
components of convertible bond (17) 20 28
Environmental, rehabilitation and
other expenditure 40 6 (18)
Other non-cash movements 13 19 14
Movements in working capital (59) (14) (14)
282 313 354
Movements in working capital
Increase in inventories (75) (50) (55)
(Increase) decrease in trade and
other receivables (40) (9) 1
Increase in trade and other payables 56 46 40
(59) (14) (14)
Year Year
ended ended
December December
2007 2006
US Dollar million Unaudited Audited
Cash flows from operating activities
Receipts from customers 3,424 3,134
Payments to suppliers and employees (2,303) (1,853)
Cash generated from operations 1,121 1,281
Cash generated (utilised) by discontinued operations (2) (1)
Dividends received from associates - -
Taxation paid (237) (143)
Net cash inflow from operating activities 882 1,137
Cash flows from investing activities
Capital expenditure (1,024) (817)
Acquisition of assets (40) -
Proceeds from disposal of tangible assets 29 57
Proceeds from disposal of assets of discontinued
operations 1 9
Other investments acquired (27) (71)
Associate loans and acquisitions - (9)
Proceeds from disposal of investments 25 66
Dividend received from other investments 2 -
Decrease (increase) in cash restricted for use (25) (3)
Interest received 37 25
Loans advanced (1) (1)
Repayment of loans advanced 1 6
Net cash outflow from investing activities (1,022) (738)
Cash flows from financing activities
Proceeds from issue of share capital 34 512
Share issue expenses - (5)
Proceeds from borrowings 800 226
Repayment of borrowings (490) (623)
Finance costs (73) (88)
Dividends paid (144) (132)
Net cash inflow (outflow) from financing activities 127 (110)
Net (decrease) increase in cash and cash equivalents (13) 289
Translation 14 (3)
Cash and cash equivalents at beginning of period 495 209
Net cash and cash equivalents at end of period 496 495
Cash generated from operations
(Loss) profit before taxation (492) 168
Adjusted for:
Movement on non-hedge derivatives and other
commodity contracts 1,088 627
Amortisation of tangible assets 590 597
Finance costs and unwinding of obligations 125 123
Deferred stripping (63) (75)
Interest receivable (45) (32)
Operating special items 21 22
Amortisation of intangible assets 2 2
Fair value adjustment on option components of
convertible bond (47) (16)
Environmental, rehabilitation and other expenditure 42 (22)
Other non-cash movements 79 27
Movements in working capital (179) (140)
1,121 1,281
Movements in working capital
Increase in inventories (240) (211)
(Increase) decrease in trade and other receivables (79) 19
Increase in trade and other payables 140 52
(179) (140)
Rounding of figures may result in computational discrepancies.
Statement of recognised income and expense
Year Year
ended ended
December December
2007 2006
SA Rand million Unaudited Audited
Actuarial (loss) gain on pension and post-retirement
benefits (99) 283
Acquisition of minority interest (172) -
Net loss on cash flow hedges removed from equity and
reported in gold sales 1,484 1,274
Net loss on cash flow hedges (1,173) (1,604)
Hedge ineffectiveness 6 -
Gain on available-for-sale financial assets 37 78
Deferred taxation on items above 36 50
Net exchange translation differences (198) 2,292
Net (loss) income recognised directly in equity (79) 2,373
Loss for the year (4,047) (385)
Total recognised (expense) income for the year (4,126) 1,988
Attributable to:
Equity shareholders (4,250) 1,755
Minority interest 124 233
(4,126) 1,988
US Dollar million
Actuarial (loss) gain on pension and post-retirement
benefits (14) 42
Acquisition of minority interest (25) -
Net loss on cash flow hedges removed from equity and
reported in gold sales 210 217
Net loss on cash flow hedges (168) (229)
Hedge ineffectiveness 1 -
Gain on available-for-sale financial assets 6 12
Deferred taxation on items above 5 8
Net exchange translation differences 2 281
Net income recognised directly in equity 17 331
Loss for the year (636) (14)
Total recognised (expense) income for the year (619) 317
Attributable to:
Equity shareholders (639) 289
Minority interest 20 28
(619) 317
Rounding of figures may result in computational discrepancies.
Notes
for the quarter and year ended 3 1 December 2007
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. The group`s accounting policies
used in the preparation of these financial statements are consistent with those
used in the annual financial statements for the year ended 31 December 2006 and
revised International Financial Reporting Standards (IFRS) which are effective
1 January 2007, where applicable.
The financial statements of AngloGold Ashanti Limited have been prepared in
compliance with IAS34, JSE Listings Requirements and in the manner required by
the South African Companies Act, 1973 for the preparation of financial
information of the group for the quarter and year ended 3 1 December 2007.
2. Revenue
Quarter ended Year ended
Dec Sept Dec Dec Dec
2007 2007 2006 2007 2006
Unaudited Unaudited Unaudited Unaudited Audited
SA Rand million
Gold income 5,784 6,383 5,634 23,052 20,137
By-products (note 3) 555 125 272 1,003 749
Dividend received from
other investments - 16 - 16 -
Interest received 89 89 69 312 218
6,428 6,613 5,975 24,383 21,104
Quarter ended Year ended
Dec Sept Dec Dec Dec
2007 2007 2006 2007 2006
Unaudited Unaudited Unaudited Unaudited Audited
US Dollar million
Gold income 856 902 770 3,280 2,964
By-products (note 3) 82 18 38 145 110
Dividend received from
other investments - 2 - 2 -
Interest received 13 13 10 45 32
951 934 818 3,472 3,106
3. Cost of sales
Quarter ended
Dec Sept Dec
2007 2007 2006
Unaudited Unaudited Unaudited
SA Rand million
Cash operating costs (4,056) (3,684) (3,403)
By-products (note 2) 555 125 272
(3,501) (3,559) (3,131)
Other cash costs (187) (176) (172)
Total cash costs (3,688) (3,735) (3,303)
Retrenchment costs (88) (27) (114)
Rehabilitation and
other non-cash costs (321) (85) 122
Production costs (4,097) (3,847) (3,295)
Amortisation of
tangible assets (1,103) (1,082) (1,215)
Amortisation of
intangible assets (3) (3) (4)
Total production costs (5, 203) (4,933) (4,514)
Inventory change (12) 9 37
(5, 215) (4,924) (4,477)
Year ended
Dec Dec
2007 2006
Unaudited Audited
SA Rand million
Cash operating costs (14,257) (11,994)
By-products (note 2) 1,003 749
(13,254) (11,245)
Other cash costs (705) (594)
Total cash costs (13,959) (11,839)
Retrenchment costs (131) (152)
Rehabilitation and
other non-cash costs (445) 35
Production costs (14, 535) (11,956)
Amortisation of
tangible assets (4,143) (4,059)
Amortisation of
intangible assets (14) (13)
Total production costs (18,692) (16,028)
Inventory change 197 546
(18,495) (15,482)
Quarter ended
Dec Sept Dec
2007 2007 2006
Unaudited Unaudited Unaudited
US Dollar million
Cash operating costs (600) (521) (466)
By-products (note 2) 82 18 38
(518) (503) (428)
Other cash costs (27) (25) (24)
Total cash costs (545) (528) (452)
Retrenchment costs (13) (4) (16)
Rehabilitation and
other non-cash costs (47) (12) 17
Production costs (605) (544) (451)
Amortisation of
tangible assets (164) (153) (167)
Amortisation of
intangible assets - - -
Total production costs (769) (697) (618)
Inventory change (2) 1 6
(771) (696) (612)
Year ended
Dec Dec
2007 2006
Unaudited Audited
US Dollar million
Cash operating costs (2,033) (1,770)
By-products (note 2) 145 110
(1,888) (1,660)
Other cash costs (100) (86)
Total cash costs (1,988) (1,746)
Retrenchment costs (19) (22)
Rehabilitation and
other non-cash costs (65) 3
Production costs (2,072) (1,765)
Amortisation of
tangible assets (590) (597)
Amortisation of
intangible assets (2) (2)
Total production costs (2,664) (2,364)
Inventory change 28 82
(2,636) (2,282)
Rounding of figures may result in computational discrepancies.
4. Other operating expenses
Quarter ended Year ended
Dec Sept Dec Dec Dec
2007 2007 2006 2007 2006
Unaudited Unaudited Unaudited Unaudited Audited
SA Rand million
Pension and medical defined
benefit provisions 52 (25) 1 (23) (57)
Claims filed by former
employees in respect of
loss of employment, work-
related accident injuries
and diseases, govern-
mental fiscal claims and
costs of old tailings
operations (30) (40) (30) (97) (67)
Miscellaneous - - 3 (14) (5)
22 (65) (26) (134) (129)
Quarter ended Year ended
Dec Sept Dec Dec Dec
2007 2007 2006 2007 2006
Unaudited Unaudited Unaudited Unaudited Audited
US Dollar million
Pension and medical defined
benefit provisions 7 (4) - (3) (8)
Claims filed by former
employees in respect of
loss of employment, work-
related accident injuries
and diseases, govern-
mental fiscal claims and
costs of old tailings
operations (4) (5) (4) (15) (9)
Miscellaneous - - - (2) (1)
3 (9) (4) (20) (18)
5. Operating special items
Quarter ended Year ended
Dec Sept Dec Dec Dec
2007 2007 2006 2007 2006
Unaudited Unaudited Unaudited Unaudited Audited
SA Rand million
Indirect tax expenses (177) - (118) (184) (202)
Performance related option
expense - - (129) - (129)
Cost of E-shares issued to
Izingwe Holdings (Pty) Ltd,
a Black Economic
Empowerment company - - (131) - (131)
Impairment of tangible
assets (note 8) (5) - (41) (6) (44)
Impairment of goodwill
(note 8) (7) - - (7) -
Recovery of loan (note 8) - - - - 36
Recovery of exploration
costs previously expensed 6 - - 29 -
Siguiri royalty payment
calculation dispute with the
Guinean Administration (27) - - (27) -
(Loss) profit on disposal and
abandonment of assets
(note 8) (78) 48 321 56 340
(288) 48 (98) (139) (130)
Quarter ended Year ended
Dec Sept Dec Dec Dec
2007 2007 2006 2007 2006
Unaudited Unaudited Unaudited Unaudited Audited
US Dollar million
Indirect tax expenses (26) - (16) (26) (28)
Performance related option
expense - - (19) - (19)
Cost of E-shares issued to
Izingwe Holdings (Pty) Ltd,
a Black Economic
Empowerment company - - (19) - (19)
Impairment of tangible
assets (note 8) (1) - (6) (1) (6)
Impairment of goodwill
(note 8) (1) - - (1) -
Recovery of loan (note 8) - - - - 5
Recovery of exploration
costs previously expensed 1 - - 4 -
Siguiri royalty payment
calculation dispute with the
Guinean Administration (4) - - (4) -
(Loss) profit on disposal and
abandonment of assets
(note 8) (12) 7 46 7 49
(42) 7 (14) (21) (18)
Rounding of figures may result in computational discrepancies.
6. Taxation
Quarter ended Year ended
Dec Sept Dec Dec Dec
2007 2007 2006 2007 2006
Unaudited Unaudited Unaudited Unaudited Audited
SA Rand million
Current tax
Normal taxation (390) (443) (261) (1,608) (1,370)
Disposal of tangible
assets (note 8) (9) (9) (2) (40) (13)
(Under) over provision
prior year (6) 18 (49) (32) (49)
(405) (434) (312) (1,680) (1,432)
Deferred taxation
Temporary differences (36) 10 (73) 7 (215)
Unrealised non-hedge
derivatives and other
commodity contracts 336 233 37 673 742
Disposal of tangible
assets (note 8) (2) 31 (57) 18 (56)
Change in estimated
deferred tax rate 34 - (271) (57) (271)
332 274 (365) 641 200
Total taxation (73) (161) (676) (1,039) (1,232)
Quarter ended Year ended
Dec Sept Dec Dec Dec
2007 2007 2006 2007 2006
Unaudited Unaudited Unaudited Unaudited Audited
US Dollar million
Current tax
Normal taxation (58) (63) (37) (229) (201)
Disposal of tangible
assets (note 8) (1) (1) - (6) (2)
(Under) over provision
prior year (1) 3 (7) (4) (7)
(60) (61) (44) (239) (210)
Deferred taxation
Temporary differences (6) 2 (7) 1 (30)
Unrealised non-hedge
derivatives and other
commodity contracts 50 34 15 98 106
Disposal of tangible
assets (note 8) - 4 (8) 3 (8)
Change in estimated
deferred tax rate 5 - (38) (8) (38)
49 40 (38) 94 30
Total taxation (11) (21) (82) (145) (180)
7. Discontinued operations
The Ergo surface dump reclamation, which forms part of the South African
operations, has been discontinued as the operation has reached the end of its
useful life. The results of Ergo are presented below:
Quarter ended Year ended
Dec Sept Dec Dec Dec
2007 2007 2006 2007 2006
Unaudited Unaudited Unaudited Unaudited Audited
SA Rand million
Gold income - 1 6 5 26
Cost of sales 31 (6) (19) 15 (39)
Gross profit (loss) 31 (5) (13) 20 (13)
Other income 10 - - 10 -
Taxation (1) (19) 12 (23) 1
Net profit (loss) attributable
to discontinued operations 41 (24) (1) 7 (12)
Quarter ended Year ended
Dec Sept Dec Dec Dec
2007 2007 2006 2007 2006
Unaudited Unaudited Unaudited Unaudited Audited
US Dollar million
Gold income - - 1 1 4
Cost of sales 5 (1) (3) 2 (6)
Gross profit (loss) 5 (1) (2) 3 (2)
Other income 2 - - 2 -
Taxation - (3) 2 (4) -
Net profit (loss) attributable
to discontinued operations 6 (3) - 1 (2)
Rounding of figures may result in computational discrepancies.
8. Headline loss
Quarter ended Year ended
Dec Sept Dec Dec Dec
2007 2007 2006 2007 2006
Unaudited Unaudited Unaudited Unaudited Audited
SA Rand million
The loss attributable
to equity shareholders
has been adjusted by the
following to arrive at
headline loss:
(Loss) profit
attributable to
equity shareholders (3,199) (2,003) 69 (4,269) (587)
Impairment of tangible
assets (note 5) 5 - 41 6 44
Impairment of goodwill
(note 5) 7 - - 7 -
Loss (profit) on
disposal of
assets (note 5) 78 (48) (321) (56) (376)
Impairment of
investment in
associate 3 101 - 154 -
Taxation on items
above -
current portion (note 6) 9 9 2 40 13
Taxation on items
above -
deferred portion (note 6) 2 (31) 57 (18) 56
Headline loss (3,095) (1,972) (151) (4, 136) (850)
Cents per share (1)
Headline loss (1,099) (701) (55) (1,470) (312)
Quarter ended Year ended
Dec Sept Dec Dec Dec
2007 2007 2006 2007 2006
Unaudited Unaudited Unaudited Unaudited Audited
US Dollar million
The loss attributable
to equity shareholders has
been adjusted by the
following to arrive at
headline loss:
(Loss) profit attributable to
equity shareholders (482) (316) (72) (668) (44)
Impairment of tangible
assets (note 5) 1 - 6 1 6
Impairment of goodwill
(note 5) 1 - - 1 -
Loss (profit) on disposal of
assets (note 5) 12 (7) (46) (7) (54)
Impairment of investment in
associate - 14 - 22 -
Taxation on items above -
current portion (note 6) 1 1 - 6 2
Taxation on items above -
deferred portion (note 6) - (4) 8 (3) 8
Headline loss (466) (312) (103) (648) (82)
Cents per share (1)
Headline loss (165) (111) (37) (230) (30)
(1) Calculated on the basic weighted average number of ordinary shares.
9. Shares
Quarter ended
Dec Sept Dec
2007 2007 2006
Unaudited Unaudited Unaudited
Authorised:
Ordinary shares of 25 SA
cents each 400,000,000 400,000,000 400,000,000
E ordinary shares of 25 SA
cents each 4,280,000 4,280,000 4,280,000
A redeemable preference
shares of 50 SA cents each 2,000,000 2,000,000 2,000,000
B redeemable preference
shares of 1 SA cent each 5,000,000 5,000,000 5,000,000
Issued and fully paid:
Ordinary shares in issue 277,457,471 276,919,836 276,236,153
E ordinary shares in issue 4, 140, 230 4,077,860 4,185,770
Total ordinary shares: 281, 597, 701 280,997,696 280,421,923
A redeemable preference shares 2,000,000 2,000,000 2,000,000
B redeemable preference shares 778,896 778,896 778,896
In calculating the diluted
number of ordinary shares
outstanding for
the year, the following were
taken into consideration:
Ordinary shares 277,119,778 276,853,218 275,598,456
E ordinary shares 4,080,713 4,093,133 773,762
Fully vested options 457,601 455,473 304,280
Weighted average number of
shares 281,658,092 281,401,824 276,676,498
Dilutive potential of share
options - - -
Diluted number of ordinary
shares (1) 281,658,092 281,401,824 276,676,498
Year ended
Dec Dec
2007 2006
Unaudited Audited
Authorised:
Ordinary shares of 25 SA cents each 400,000,000 400,000,000
E ordinary shares of 25 SA cents each 4,280,000 4,280,000
A redeemable preference shares of 50 SA cents
each 2,000,000 2,000,000
B redeemable preference shares of 1 SA cent
each 5,000,000 5,000,000
Issued and fully paid:
Ordinary shares in issue 277,457,471 276,236,153
E ordinary shares in issue 4, 140, 230 4,185,770
Total ordinary shares: 281, 597, 701 280,421,923
A redeemable preference shares 2,000,000 2,000,000
B redeemable preference shares 778,896 778,896
In calculating the diluted number of ordinary
shares outstanding for
the year, the following were taken into
consideration:
Ordinary shares 276,805,309 272,214,937
E ordinary shares 4,117,815 194,954
Fully vested options 533,904 398,326
Weighted average number of shares 281,457,028 272,808,217
Dilutive potential of share options - -
Diluted number of ordinary shares (1) 281,457,028 272,808,217
(1) The basic and diluted number of ordinary shares are the same for December
2006 quarter and the year 2006 as the effects of shares for performance related
options are anti-dilutive.
Rounding of figures may result in computational discrepancies.
10. Ordinary s hare capital and premium
As at
Dec Sept Dec
2007 2007 2006
Unaudited Unaudited Unaudited
SA Rand million
Balance at beginning of period 23,045 23,045 19,362
Ordinary shares issued 283 170 3, 330
E ordinary shares (cancelled)
issued (6) (14) 353
Translation - - -
Sub-total 23, 322 23,201 23,045
Redeemable preference shares
held within the
group (312) (312) (312)
Ordinary shares held within
the group (292) (285) (297)
E ordinary shares held within
the group (347) (339) (353)
Balance at end of period 22, 371 22, 265 22, 083
As at
Dec Sept Dec
2007 2007 2006
Unaudited Unaudited Unaudited
US Dollar million
Balance at beginning of period 3,292 3,292 3,055
Ordinary shares issued 40 22 550
E ordinary shares (cancelled)
issued (1) (1) 50
Translation 94 63 (363)
Sub-total 3, 425 3,376 3,292
Redeemable preference shares
held within the
group (46) (45) (45)
Ordinary shares held within
the group (43) (41) (43)
E ordinary shares held within
the group (51) (49) (50)
Balance at end of period 3, 285 3, 241 3, 154
11. Retained earnings and other reserves
Foreign
Non - currency
Retained distributable translation
earnings reserves reserve
SA Rand million
Balance at December 2005 1,115 138 (1,910)
Actuarial gains recognised
Deferred taxation thereon
Loss attributable to equity
shareholders (587)
Dividends (742)
Net loss on cash flow hedges
removed from
equity and reported in gold sales
Net loss on cash flow hedges
Deferred taxation on cash flow
hedges
Gain on available-for -sale
financial assets
Deferred taxation on
available-for -sale financial
assets
Share-based payment for share
awards and BEE
transaction
Translation 2,346
Balance at December 2006 (214) 138 436
Actuarial loss recognised
Deferred taxation thereon
Loss attributable to equity
shareholders (4,269)
Dividends (919)
Acquisition of minority interest (81)
Transfers to foreign currency
translation reserve (41) 41
Net loss on cash flow hedges
removed from equity
and reported in gold sales
Net loss on cash flow hedges
Hedge ineffectiveness
Deferred taxation on cash flow
hedges and hedge
ineffectiveness
Gain on available-for -sale
financial assets
Deferred taxation on
available-for -sale financial
assets
Share-based payment for share
awards and BEE
transaction
Translation (139)
Balance at December 2007 (5, 524) 138 338
Other
Actuarial comprehen -
gains sive
(losses) income Total
SA Rand million
Balance at December 2005 (227) (1,655) (2,539)
Actuarial gains recognised 283 283
Deferred taxation thereon (102) (102)
Loss attributable to equity
shareholders (587)
Dividends (742)
Net loss on cash flow hedges removed
from equity and reported in gold sales 1,264 1,264
Net loss on cash flow hedges (1,592) (1,592)
Deferred taxation on cash flow hedges 167 167
Gain on available-for -sale
financial assets 78 78
Deferred taxation on available-for
-sale financial
assets (15) (15)
Share-based payment for share awards
and BEE
transaction 338 338
Translation 1 (88) 2,259
Balance at December 2006 (45) (1,503) (1,188)
Actuarial loss recognised (99) (99)
Deferred taxation thereon 36 36
Loss attributable to equity
shareholders (4,269)
Dividends (919)
Acquisition of minority interest (81)
Transfers to foreign currency
translation reserve -
Net loss on cash flow hedges removed
from equity
and reported in gold sales 1,470 1,470
Net loss on cash flow hedges (1,161) (1,161)
Hedge ineffectiveness 6 6
Deferred taxation on cash flow
hedges and hedge
ineffectiveness (1) (1)
Gain on available-for -sale
financial assets 37 37
Deferred taxation on available-for
-sale financial
assets 1 1
Share-based payment for share awards
and BEE
transaction 190 190
Translation (50) (189)
Balance at December 2007 (108) (1,011) (6, 167)
Rounding of figures may result in computational discrepancies.
11. Retained earnings and other reserves cont.
Foreign
Non - currency
Retained distributable translation
earnings reserves reserve
US Dollar million
Balance at December 2005 (58) 22 (66)
Actuarial gains recognised
Deferred taxation thereon
Loss attributable to equity
shareholders (44)
Dividends (107)
Net loss on cash flow hedges
removed from
equity and reported in gold sales
Net loss on cash flow hedges
Deferred taxation on cash flow
hedges
Gain on available-for -sale
financial assets
Deferred taxation on
available-for -sale financial
assets
Share-based payment for share
awards and BEE
transaction
Translation (2) 307
Balance at December 2006 (209) 20 241
Actuarial loss recognised
Deferred taxation thereon
Loss attributable to equity
shareholders (668)
Dividends (125)
Acquisition of minority interest (12)
Transfers to foreign currency
translation reserve (6) 6
Net loss on cash flow hedges
removed
from equity and reported in gold
sales
Net loss on cash flow hedges
Hedge ineffectiveness
Deferred taxation on cash flow
hedges and hedge
ineffectiveness
Gain on available-for -sale
financial assets
Deferred taxation on
available-for -sale financial
assets
Share-based payment for share
awards and BEE
transaction
Translation 11
Balance at December 2007 (1,020) 20 258
Other
Actuarial Comprehen -
gains sive
(losses) income Total
US Dollar million
Balance at December 2005 (36) (261) (399)
Actuarial gains recognised 42 42
Deferred taxation thereon (15) (15)
Loss attributable to equity shareholders (44)
Dividends (107)
Net loss on cash flow hedges removed
from
equity and reported in gold sales 215 215
Net loss on cash flow hedges (227) (227)
Deferred taxation on cash flow hedges 25 25
Gain on available-for -sale financial
assets 12 12
Deferred taxation on available-for
-sale financial
assets (2) (2)
Share-based payment for share awards
and BEE
transaction 48 48
Translation 3 (25) 283
Balance at December 2006 (6) (215) (169)
Actuarial loss recognised (14) (14)
Deferred taxation thereon 5 5
Loss attributable to equity shareholders (668)
Dividends (125)
Acquisition of minority interest (12)
Transfers to foreign currency
translation reserve -
Net loss on cash flow hedges removed
from equity and reported in gold sales 209 209
Net loss on cash flow hedges (166) (166)
Hedge ineffectiveness 1 1
Deferred taxation on cash flow hedges
and hedge
ineffectiveness - -
Gain on available-for -sale financial
assets 6 6
Deferred taxation on available-for
-sale financial
assets - -
Share-based payment for share awards
and BEE
transaction 27 27
Translation (1) (10) -
Balance at December 2007 (16) (148) (906)
12. Minority interests
As at
Dec Sept Dec
2007 2007 2006
Unaudited Unaudited Audited
SA Rand million
Balance at beginning of year 436 436 374
Profit for the period 222 175 202
Dividends paid (131) (114) (171)
Acquisition of minority
interest (1) (95) (95) -
Other balance sheet movements 4 4 -
Net loss on cash flow hedges
removed from
equity and reported in gold
sales 14 10 10
Net loss on cash flow hedges (12) (7) (12)
Translation (9) (8) 33
Balance at end of period 429 401 436
As at
Dec Sept Dec
2007 2007 2006
Unaudited Unaudited Audited
U S Dollar million
Balance at beginning of year 62 62 59
Profit for the period 32 25 30
Dividends paid (19) (16) (25)
Acquisition of minority
interest (1) (13) (13) -
Other balance sheet movements - - -
Net loss on cash flow hedges
removed from
equity and reported in gold
sales 1 1 2
Net loss on cash flow hedges (2) (1) (2)
Translation 2 - (2)
Balance at end of period 63 58 62
(1) With effect 1 September 2007, AngloGold Ashanti acquired the remaining 15%
minorities of Iduapriem.
Rounding of figures may result in computational discrepancies .
13. Exchange rates
Dec Sept Dec
2007 2007 2006
Unaudited Unaudited Audited
Rand/US dollar average for the
year to date 7.03 7.12 6.77
Rand/US dollar average for the quarter 6.76 7.08 7.31
Rand/US dollar closing 6.81 6.87 7.00
Rand/Australian dollar average for the
year to date 5.89 5.85 5.10
Rand/Australian dollar average
for the quarter 6.00 6.00 5.63
Rand/Australian dollar closing 5.98 6.04 5.53
BRL/US dollar average for the
year to date 1.95 2.00 2.18
BRL/US dollar average for the quarter 1.78 1.92 2.15
BRL/US dollar closing 1.78 1.85 2.14
14. Capital commitments
Dec Sept Dec
2007 2007 2006
Unaudited Unaudited Audited
SA Rand million
Orders placed and outstanding
on capital contracts
at the prevailing rate of
exchange 2,968 4,406 2,475
Dec Sept Dec
2007 2007 2006
Unaudited Unaudited Audited
US Dollar million
Orders placed and outstanding
on capital contracts
at the prevailing rate of
exchange 436 641 354
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 and
exchange control laws and regulations and the quantity of foreign exchange
available in offshore countries. In addition distributions from joint ventures
are subject to the relevant board approval.
The credit facilities and other financing arrangements contain financial
covenants and other similar undertakings. To the extent that external
borrowings are required, the groups covenant performance indicates that
existing financing facilities will be available to meet the above commitments.
To the extent that any of the financing facilities mature in the near future,
the group believes that these facilities can be refinanced on similar terms to
those currently in place.
15. Contingent liabilities
AngloGold Ashanti`s material contingent liabilities at 31 December 2007 are
detailed below:
Groundwater pollution - South Africa - AngloGold Ashanti has identified a
number of groundwater pollution sites at its current operations in South
Africa, and has investigated a number of different technologies and
methodologies that could possibly be used to remediate the pollution plumes.
The viability of the suggested remediation techniques in the local geological
formation in South Africa is however unknown. No sites have been remediated and
present research and development work is focused on several pilot projects to
find a solution that will in fact yield satisfactory results in South African
conditions. Subject to the technology being developed as a remediation
technique, no reliable estimate can be made for the obligation.
Provision of surety - South Africa - AngloGold Ashanti has provided sureties in
favour of a lender on a gold loan facility with its affiliate Oro Africa (Pty)
Ltd and one of its subsidiaries to a maximum value of R100m ($15m). The
suretyship agreements have a termination notice period of 90 days.
Sales tax on gold deliveries - Brazil - Mineracao Serra Grande S.A.(MSG), the
operator of the Crixas mine in Brazil, has received two tax assessments from
the State of Goias related to payments of sales taxes on gold deliveries for
export, one for the period between February 2004 and June 2005 and the other
for the period between July 2005 and May 2006. The tax authorities maintain
that whenever a taxpayer export gold mined in the state of Goias, through a
branch located in a different Brazilian State, it must obtain an authorisation
from the Goias State Treasury by means of a Special Regime Agreement (Termo de
Acordo re Regime Especial - TARE). The Serra Grande operation is co -owned with
Kinross Gold Corporation. AngloGold Ashanti Brasil Mineracao Ltda. manages
the operation and its attributable share of the first assessment is
approximately $39m. Although MSG requested the TARE in early 2004, the TARE,
which authorized the remittance of gold to the company`s branch in Minas Gerais
specifically for export purposes, was only granted and executed in May 2006.
In November 2006 the administrative council`s second chamber ruled in favour of
Serra Grande and fully cancelled the tax liability related to the first period.
The State of Goias has appealed to the full board of the State of Goias tax
administrative council. The second assessment was issued by the State of
Goias in October 2006 on the same grounds as the first one, and the
attributable share of the assessment is approximately $24m. The company
believes both assessments are in violation of Federal legislation on sales
taxes.
VAT Disputes - Brazil - MSG received a tax assessment in October 2003 from the
State of Minas Gerais related to sales taxes on gold allegedly returned from
the branch in Minas Gerais to the company head office in the State of Goias.
The tax administrators rejected the company`s appeal against the assessment.
The company is now dismissing the case at the judicial sphere. The company`s
attributable share of the assessment is approximately $8m.
Tax Disputes - Brazil - Morro Velho and AngloGold Ashanti Brasil Mineracao
are involved in disputes with tax authorities. These disputes involve eleven
federal tax assessments including income tax, social contributions and annual
property tax based on ownership of properties outside of urban perimeters
(ITR). The amount involved is approximately $8m.
16. Concentration of risk
There is a concentration of risk in respect of reimbursable value added tax
and fuel duties from the Malian government:
Reimbursable value added tax due from the Malian government amounts to an
attributable $42m at 31 December 2007 (30 September 2007: attributable $37m).
The last audited value added tax return was for the period ended 31 March 2007
and at the balance sheet date an attributable $25m was still outstanding and
$17m is still subject to audit. The accounting processes for the unaudited
amount are in accordance with the processes advised by the Malian government in
terms of the previous audits.
Reimbursable fuel duties from the Malian government amounts to an
attributable $7m at 31 December 2007 (30 September 2007: attributable $8m).
Fuel duty refund claims are required to be submitted before 31 January of the
following year and are subject to authorisation by firstly the Department of
Mining an d secondly the Custom and Excise authorities. The Customs and Excise
authorities have approved an attributable $2m, which is still outstanding,
whilst an attributable $5m is still subject to authorisation. The accounting
processes for the unauthorised amount are in accordance with the processes
advised by the Malian government in terms of the previous authorisations. As
from February 2006 all fuel duties have been exonerated.
The government of Mali is a shareholder in all the Malian entities. Management
is in negotiations with the Government of Mali to agree a protocol for the
repayment of the outstanding amounts. The outstanding amounts have been
discounted to their present value at a rate of 6.5 %.
There is a concentration of risk in respect of reimbursable value added tax and
fuel duties from the Tanzanian government:
Reimbursable value added tax due from the Tanzanian government amounts to
$16m at 31 December 2007 (30 September 2007: $18m). The last audited value
added tax return was for the period ended 30 June 2007 and at the balance sheet
date $14m was still outstanding and $2m is still subject to audit. The
accounting processes for the unaudited amount are in accordance with the
processes advised by the Tanzanian government in terms of the previous audits.
The outstanding amounts have been discounted to their present value at a rate
of 7.8%.
Reimbursable fuel duties from the Tanzanian government amounts to $37m at 31
December 2007 (30 September 2007: $30m). Fuel duty claims are required to be
submitted after consumption of the related fuel and are subject to
authorisation by the Customs and Excise authorities. Claims for refund of fuel
duties amounting to $21m have been lodged with the Customs and Excise
authorities, which are still outstanding, whilst claims for refund of $ 16m
have not yet been submitted. The accounting processes for the unauthorised
amount are in accordance with the processes advised by the Tanzanian government
in terms of the previous authorisations. The outstanding amounts have been
discounted to their present value at a rate of 7.8%.
17. Attributable interest
Although AngloGold Ashanti holds a 66.7% interest in Cripple Creek & Victor
Gold Mining Company Limited, it is currently entitled to receive 100% of the
cash flows from the operation until the loan, extended to the joint venture by
AngloGold Ashanti USA Inc., is repaid.
18. Borrowings
AngloGold Ashanti`s borrowings are interest bearing.
19. Announcements
On 12 November 2007, it was announced that due to further operational
management restructure, Neville Nicolau resigned from the board to pursue other
opportunities with immediate effect.
On 12 December 2007, AngloGold Ashanti announced the successful closing of a
US$1.15 bn syndicated revolving loan facility. The new 3-year facility will be
used to refinance an existing US$700m revolving credit facility, an AUD200m
facility and for general corporate purposes.
On 14 January 2008, AngloGold Ashanti announced that it had agreed to acquire
100% of Golden Cycle Gold Corporation (GCGC) through a merger transaction in
which GCGC`s shareholders will receive 29 AngloGold Ashanti ADRs for every 100
shares of GCGC common stock held. GCGC currently holds a 33% shareholding in
Cripple Creek & Victor while AngloGold Ashanti hold the remaining 67%. The
merger transaction will result in Cripple Creek & Victor being a wholly-owned
AngloGold Ashanti operation. The transaction is subject to a number of
regulatory and statutory approvals, including approval by GCGC shareholders.
The transaction, at the date of announcement was valued at approximately
US$149m.
On 18 January 2008, AngloGold Ashanti provided operation guidance to its fourth
quarter 2007 results, in which it was stated that its South African and Geita
operations had experienced production difficulties resulting in the group`s
production for the quarter to be of the region of 1,368,000 ounces.
Following the announcement made on 25 January 2008, in which AngloGold Ashanti
advised that Eskom (the South African electricity supply body) would be
interrupting power supplies to the company`s South African operations,
AngloGold Ashanti halted mining and gold recovery at these operations.
Subsequently, AngloGold Ashanti announced on 29 January 2008, that it had begun
the process to restart production at its South African operations following a
meeting with Eskom and industrial electricity consumers at which, Eskom had
agreed to provide AngloGold Ashanti with 90% of its electricity demand prior to
the shut down so as to return the operations to normal production.
20. Dividend
The directors have today declared Final Dividend No. 103 of 53 (Final Dividend
No. 101: 240) South African cents per ordinary share for the year ended 31
December 2007. In compliance with the requirements of STRATE, given the
company`s primary listing on the JSE Limited, the salient dates for payment of
the dividend are as follows:
To holders of ordinary shares and to holders of CHESS Depositary Interests
(CDIs) Each CDI represents one-fifth of an ordinary share.
2008
Currency conversion date for UK pounds, Australian
dollars and Ghanaian cedis Thursday, 21 February
Last date to trade ordinary shares cum dividend Friday, 22 February
Last date to register transfers of certificated
securities cum dividend Friday, 22 February
Ordinary shares trade ex dividend Monday, 25 February
Record date Friday, 29 February
Payment date Friday, 7 March
On the payment date, dividends due to holders of certificated securities on the
South African share register will either be electronically transferred to
shareholders` bank accounts or, in the absence of suitable mandates, dividend
cheques will be posted to such shareholders.
Dividends in respect of dematerialised shareholdings will be credited to
shareholders` accounts with the relevant CSDP or broker.
To comply with the further requirements of STRATE, between Monday, 25 February
2008 and Friday, 29 February 2008, 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.
2008
Ex dividend on New York Stock Exchange Wednesday, 27 February
Record date Friday, 29 February
Approximate date for currency conversion Friday, 7 March
Approximate payment date of dividend Monday, 17 March
Assuming an exchange rate of R7.4805 /$1, the dividend payable on an ADS is
equivalent to 7 US cents. This compares with the final dividend of 32.384 US
cents per ADS paid on 26 March 2007 . 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.
2008
Last date to trade and to register GhDSs cum dividend Friday, 22 February
GhDSs trade ex dividend Monday, 25 February
Record date Friday, 29 February
Approximate payment date of dividend Monday, 10 March
Assuming an exchange rate of R7.6723/Cents (USD) the dividend payable per GhDS
is
equivalent to 0.0006908 cedis. This compares with the final dividend of
0.00304121 cedis per GhDS paid on 19 March 2007. However, the actual rate of
payment will depend on the exchange rate on the date for currency conversion.
In Ghana, the authorities have determined that dividends payable to residents
on the Ghana share register be subject to a final withholding tax at a rate of
10%, similar to the rate applicable to dividend payments made by resident
companies which is currently at 10%.
In addition, directors have today declared Dividend No. E3 of 26.50 South
African cents per E ordinary share, payable to employees participating in the
Bokamoso ESOP and Izingwe Holdings (Proprietary) Limited . These dividends are
payable on 7 March 2008.
21. Detailed report
This report contains a summary of the results of AngloGold Ashanti`s
operations. A detailed report appears on the internet and is obtainable in
printed format from the investor relations contacts, whose details, along with
the website address, appear at the end of this report.
By order of the Board
R P EDEY M CUTIFANI
Chairman Chief Executive Officer
6 February 2008
Segmental reporting
for the quarter and year ended 31 December 2007
Based on risks and returns the directors consider that the primary reporting
format is by business segment. The directors consider that there is only one
business segment being mining, extraction and production of gold. Therefore the
disclosures for the primary segment have already been given in the abbreviated
financial statements. The secondary reporting format is by geographical
analysis by origin.
Quarter Quarter Quarter Year Year
ended ended ended ended ended
Dec Sept Dec Dec Dec
2007 2007 2006 200 2006
Unaudited Unaudited Unaudited Unaudited Audited
SA Rand million
Gold income
South Africa 2,292 2,805 2,390 9,843 9,151
Argentina 198 273 175 988 841
Australia 684 715 623 2,437 1,851
Brazil 495 546 465 2,001 1,558
Ghana 601 648 453 2,365 1,781
Guinea 492 307 331 1,483 960
Mali 535 469 574 1,951 2,146
Namibia 96 87 80 364 336
Tanzania 111 347 257 807 857
USA 280 185 286 813 656
5,784 6,383 5,634 23,052 20,137
Gross profit (loss)
adjusted for
the loss on unrealised
non-hedge
derivatives and other
commodity
contracts
South Africa 502 802 872 2,845 3,746
Argentina 58 77 (12) 338 245
Australia 228 288 308 960 934
Brazil 277 232 329 987 946
Ghana (150) 26 (108) 25 (186)
Guinea 44 1 (19) 101 19
Mali 165 150 287 646 986
Namibia 19 16 32 90 148
Tanzania (110) 94 (2) 52 (19)
USA 190 109 167 518 167
Other 86 (34) 105 28 221
1,309 1,761 1,959 6,590 7,207
Cash gross profit (loss) 1
South Africa 1,023 1,261 1,382 4,628 5,366
Argentina 98 118 63 513 465
Australia 319 378 391 1,308 1,179
Brazil 372 323 399 1,308 1,136
Ghana (56) 153 28 485 396
Guinea 117 59 79 352 282
Mali 206 192 364 809 1,274
Namibia 30 26 43 131 192
Tanzania (53) 185 78 358 246
USA 247 168 226 742 432
Other 113 (16) 105 116 268
2,416 2,847 3,158 10,750 11,236
Quarter Quarter Quarter Year Year
ended ended ended ended ended
Dec Sept Dec Dec Dec
2007 2007 2006 2007 2006
Unaudited Unaudited Unaudited Unaudited Audited
US Dollar million
Gold income
South Africa 339 397 326 1,399 1,347
Argentina 30 38 24 140 125
Australia 101 101 86 348 271
Brazil 73 78 63 285 228
Ghana 89 92 62 337 263
Guinea 73 43 46 211 141
Mali 79 66 78 278 317
Namibia 14 12 11 52 50
Tanzania 16 49 35 114 127
USA 41 26 39 116 95
856 902 770 3,280 2,964
Gross profit (loss) adjusted for
the loss on unrealised non-hedge
derivatives and other commodity
contracts
South Africa 74 113 118 403 549
Argentina 9 11 (2) 48 37
Australia 34 41 43 137 137
Brazil 41 33 45 141 138
Ghana (22) 4 (15) 3 (26)
Guinea 7 - (2) 14 4
Mali 24 21 39 92 146
Namibia 3 2 4 13 22
Tanzania (16) 13 - 6 (2)
USA 28 15 23 74 23
Other 13 (4) 16 4 30
195 249 269 935 1,058
Cash gross profit (loss) 1
South Africa 151 178 188 657 788
Argentina 15 17 9 73 69
Australia 47 53 54 186 173
Brazil 55 46 55 186 165
Ghana (8) 22 4 68 60
Guinea 17 8 11 50 42
Mali 30 27 50 115 188
Namibia 4 4 6 19 28
Tanzania (8) 26 11 50 37
USA 36 24 31 106 62
Other 19 (3) 15 17 40
358 402 434 1,527 1,652
1 Gross profit (loss) adjusted for the loss on unrealised non-hedge derivatives
and other commodity contracts plus amortisation of tangible and intangible
assets, less non-cash revenues. Refer to note F of "Non-GAAP disclosure" for
the computation.
Rounding of figures may result in computational discrepancies.
Segmental reporting (continued)
Quarter Quarter Quarter Year Year
ended ended ended ended ended
Dec Sept Dec Dec Dec
2007 2007 2006 2007 2006
Unaudited Unaudited Unaudited Unaudited Audited
kg
Gold production
South Africa 17,503 19,218 20,019 72,429 79,427
Argentina 1,597 1,569 1,346 6,338 6,683
Australia 4,673 4,766 4,746 18,675 14,450
Brazil 3,480 3,401 2,904 12,689 10,551
Ghana 3,998 4,217 4,411 16,388 18,399
Guinea 2,567 1,886 2,406 8,715 7,948
Mali 3,536 3,649 4,110 13,703 16,700
Namibia 624 638 617 2,496 2,690
Tanzania 1,801 3,401 2,478 10,166 9,588
USA 2,778 1,866 2,661 8,766 8,817
42,556 44,611 45,697 170,365 175,253
Quarter Quarter Quarter Year Year
ended ended ended ended ended
Dec Sept Dec Dec Dec
2007 2007 2006 2007 2006
Unaudited Unaudited Unaudited Unaudited Audited
oz (000)
Gold production
South Africa 563 618 644 2,328 2,554
Argentina 51 50 43 204 215
Australia 150 153 153 600 465
Brazil 112 109 93 408 339
Ghana 129 136 142 527 592
Guinea 83 61 77 280 256
Mali 114 117 132 441 537
Namibia 20 21 20 80 86
Tanzania 58 109 80 327 308
USA 89 60 86 282 283
1,368 1,434 1,469 5,477 5,635
Quarter Quarter Quarter Year Year
ended ended ended ended ended
Dec Sept Dec Dec Dec
2007 2007 2006 2007 2006
Unaudited Unaudited Unaudited Unaudited Audited
SA Rand million
Capital expenditure
South Africa 881 642 695 2,535 2,116
Argentina 49 37 45 141 129
Australia 651 439 295 1,975 584
Brazil 204 258 333 995 1,258
Ghana 260 152 236 836 656
Guinea 38 56 27 146 110
Mali 26 10 22 61 44
Namibia 24 10 18 43 33
Tanzania 78 50 119 187 452
USA 33 54 29 161 89
Other 71 25 41 364 62
2,315 1,733 1,861 7,444 5,533
Quarter Quarter Quarter Year Year
ended ended ended ended ended
Dec Sept Dec Dec Dec
2007 2007 2006 2007 2006
Unaudited Unaudited Unaudited Unaudited Audited
US Dollar million
Capital expenditure
South Africa 128 91 97 361 313
Argentina 7 5 6 20 19
Australia 95 62 42 281 86
Brazil 30 37 45 142 186
Ghana 38 22 33 119 97
Guinea 6 8 4 21 16
Mali 4 1 3 9 6
Namibia 3 1 3 6 5
Tanzania 11 7 16 27 67
USA 5 8 4 23 13
Other 12 3 6 50 9
339 245 260 1,059 817
As at As at As at
Dec Sept Dec
2007 2007 2006
Unaudited Unaudited Audited
SA Rand million
Total assets
South Africa 15,616 15,590 15,392
Argentina 1,659 1,647 1,876
Australia 8,705 8,238 6,447
Brazil 4,826 4,568 3,961
Ghana 13,301 13,031 12,456
Guinea 2,127 2,005 1,974
Mali 2,399 2,299 2,350
Namibia 536 513 424
Tanzania 9,654 9,633 9,642
USA 3,608 3,593 3,566
Other 4,450 4,990 4,528
66,881 66,107 62,616
As at As at As at
Dec Sept Dec
2007 2007 2006
Unaudited Unaudited Audited
US Dollar million
Total assets
South Africa 2,293 2,269 2,199
Argentina 244 240 268
Australia 1,278 1,199 921
Brazil 709 665 566
Ghana 1,953 1,897 1,779
Guinea 312 292 282
Mali 352 335 336
Namibia 79 75 61
Tanzania 1,418 1,402 1,377
USA 530 523 509
Other 652 725 645
9,820 9,623 8,943
Rounding of figures may result in computational discrepancies.
Shareholders` notice board
Diary:
Financial year-end 31 December
Annual financial statements posting on or about 19 March 2008
Annual general meeting 11:00 SA time 2 May 2008
Quarterly reports released:
Quarter ended 31 March 2008 2 May 2008
Quarter ended 30 June 2008 31 July 2008
Quarter ended 30 September 2008 30 October 2008
Quarter ended 31 December 200 8 *2 February 2009
Dividends / Declared Last date to trade
Dividend Number ordinary shares
cum dividend
Final - No. 103 6 February 2008 22 February 2008
Interim - No. 104 30 July 2008* 15 August 200 8*
Final - No. 105 4 February 2009* 20 February 2009*
Dividends / Payment date to Payment date to ADS
Dividend Number shareholders holders
Final - No. 103 7 March 2008 17 March 2008
Interim - No. 104 29 August 200 8* 8 September 2008*
Final - No. 105 6 March 2009* 16 March 2009*
* Approximate dates.
Dividend policy: Dividends are proposed by, and approved by the board of
directors of AngloGold Ashanti , based on the interim and year-end financial
statements. Dividends are recognised when declared by the board of directors of
AngloGold Ashanti. AngloGold Ashanti expects to continue to pay dividends,
although there can be no assurance that dividends will be paid in the future or
as to the particular amounts that will be paid from year to year. The payments
of future dividends will depend upon the Board`s ongoing assessment of
AngloGold Ashanti`s earnings, after providing for long term growth and
cash/debt resources, the amount of reserves available for dividend using going
concern assessment and restrictions placed by the conditions of the convertible
bond and other factors.
Annual general meeting: Shareholders on the South African register who have
dematerialised their shares in the company (other than those shareholders whose
shareholding is recorded in their own name in the sub-register maintained by
their CSDP) and who wish to attend the annual general meeting in person, will
need to request their CSDP or broker to provide them with the necessary
authority in terms of the custody agreement entered into between them and the
CSDP or broker.
Change of details: Shareholders are reminded that the onus is on them to keep
the company, through its nominated share registrars, apprised of any change in
their postal address and personal particulars. Similarly, where shareholders
receive dividend payments electronically (EFT), they should ensure that the
banking details which the share registrars and/or CSDPs have on file are
correct.
Administrative information
ANGLO GOLD ASHANTI LIMITED
Registration No. 1944/017354/06
Incorporated in the Republic of South Africa
Share codes:
ISIN: ZAE000043485
JSE: ANG
LSE: AGD
NYSE: AU
ASX: AGG
GhSE (Shares): AGA
GhSE (GhDS): AAD
Euronext Paris: VA
Euronext Brussels: ANG
JSE Sponsor: UBS
Auditors: Ernst & Young Inc
Offices
Registered and Corporate
76 Jeppe Street
Newtown 2001
(PO Box 62117, Marshalltown 2107)
South Africa
Telephone: +27 11 637 6000
Fax: +27 11 637 6624
Australia
Level 13, St Martins Tower
44 St George`s Terrace
Perth, WA 6000
(PO Box Z5046, Perth WA 6831)
Australia
Telephone: +61 8 9425 4602
Fax: +61 8 9425 4662
Ghana
Gold House
Patrice Lumumba Road
(P O Box 2665)
Accra
Ghana
Telephone: +233 21 772190
Fax: +233 21 778155
United Kingdom Secretaries
St James`s Corporate Services Limited
6 St James`s Place
London SW1A 1NP
England
Telephone: +44 20 7499 3916
Fax: +44 20 7491 1989
E- mail: jane.kirton@corpserv.co.uk
Directors
Executive
M Cutifani
(Chief Executive Officer)
S Venkatakrishnan *
Non-Executive
R P Edey * (Chairman)
Dr T J Motlatsi (Deputy Chairman)
F B Arisman #
R E Bannerman ?
Mrs E le R Bradley
J H Mensah ?
W A Nairn
Prof W L Nkuhlu
S M Pityana
S R Thompson *
* British # American ? Ghanaian
Australian
Officers
Managing Secretary: Ms Y Z Simelane
Company Secretary: Ms L Eatwell
Contacts
Charles Carter
Telephone: +27 11 637 6385
Fax: +27 11 637 6400
E- mail: cecarter@AngloGoldAshanti.com
Himesh Persotam
Telephone: +27 11 637 6647
Fax: +27 11 637 6400
E- mail:
hpersotam@AngloGoldAshanti.com
General E-mail enquiries
investors@AngloGoldAshanti.com
AngloGold Ashanti website
http://www.AngloGoldAshanti.com
Share Registrars
South Africa
Computershare Investor Services 2004
(Pty) Limited
Ground Floor, 70 Marshall Street
Johannesburg 2001
(PO Box 61051, Marshalltown 2107)
South Africa
Telephone: 0861 100 950 ( in SA)
Fax: +27 11 688 5218
web.queries@computershare.co.za
United Kingdom
Computershare Investor Services PLC
P O Box 82
The Pavilions
Bridgwater Road
Bristol BS99 7NH
England
Telephone: +44 870 889 3177
Fax: +44 870 703 6119
Australia
Computershare Investor Services Pty
Limited
Level 2, 45 St George`s Terrace
Perth, WA 6000
(GPO Box D182 Perth, WA 6840)
Australia
Telephone: +61 8 9323 2000
Telephone: 1300 55 7010 (in Australia)
Fax: +61 8 9323 2033
Ghana
NTHC Limited
Martco House
Off Kwame Nkrumah Avenue
POBox K1A 9563 Airport
Accra
Ghana
Telephone: +233 21 238492- 3
Fax: +233 21 229975
ADR Depositary
The Bank of New York ("BoNY")
Investor Services , P O Box 11258
Church Street Station
New York, NY 10286- 1258
United States of America
Telephone: +1 888 269 2377 (Toll free
in USA) or +9 610 382 7836 outside
USA)
E- mail: shareowners@bankofny.com
Website: http://www.stockbny.com
Global BuyDIRECTSM
BoNY maintains a direct share purchase
and dividend reinvestment plan for
ANGLOGOLD A SHANTI .
Telephone: +1-888-BNY-ADRS
PRINTED BY INCE (PTY) LIMITED
Certain statements contained in this document, including, without limitation,
those concerning the economic outlook for the gold mining industry,
expectations regarding gold prices and production, the completion and
commencement of commercial operations of certain of AngloGold Ashanti`s
exploration and production projects, and its liquidity and capital resources
and expenditure, contain certain forward- looking statements regarding
AngloGold Ashanti`s operations, economic performance and financial condition.
Although AngloGold Ashanti believes that the expectations reflected in such
forward- looking statements are reasonable, no assurance can be given that such
expectations will prove to have been correct. Accordingly, results could differ
materially from those set out in the forward- looking statements as a result
of, among other factors, changes in economic and market conditions, success of
business and operating initiatives, changes in the regulatory environment and
other government actions, fluctuations in gold prices an d exchange rates, and
business and operational risk management. AngloGold Ashanti undertakes no
obligation to update publicly or release any revisions to these forward-
looking statements to reflect events or circumstances after the date of the
annual report on Form 20- F or to reflect the occurrence of unanticipated
events. All subsequent written or oral forward- looking statements attributable
to AngloGold Ashanti or any person acting on its behalf are qualified by the
cautionary statements herein. For a discussion on such risk factors, refer to
AngloGold Ashanti`s annual report on Form 20- F for the year ended 31 December
2006 dated 06 July 2007 , which was filed with the Securities and Exchange
Commission (SEC) on 09 July 2007.
Date: 07/02/2008 08:09:46 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,
information disseminated through SENS.
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