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ANG
ANANO
ANG - Anglogold Ashanti - Report to shareholders for the quarter and year ended
31 December 2008 Group results for the quarter....
ANGLOGOLD ASHANTI LIMITED
Registration No. 1944/017354/06
Incorporated in the Republic of South Africa
Share codes:
ISIN: ZAE000043485
JSE: ANG
LSE: AGD
NYSE: AU
ASX: AGG
GhSE (Shares): AGA
GhSE (GhDS): AAD
Euronext Paris: VA
Euronext Brussels: ANG
Report to shareholders
for the quarter and year ended 31 December 2008
Group results for the quarter....
- Gold production at 1.268Moz up on the prior quarter`s performance and ahead
of previous market guidance.
- Obuasi in Ghana delivers second consecutive quarter of production
improvement, up 7% on the previous quarter as turnaround strategy starts to
take effect.
- Uranium production increases 2% to 353,000 pounds.
- Total cash costs at $422/oz for the group, 13% better than previous quarter
and 8% below market guidance with South African operations total cash costs at
$318/oz, down 23%, while Brazil operations were $100/oz lower at $255/oz.
- Adjusted headline loss was $17m, distorted by annual accounting adjustments
which totalled $48m relating to inventory write-downs, current and deferred tax
provisions.
- $1.0bn term facility secured to re-finance convertible bond.
- Transaction announced to sell interest in Boddington for an aggregate maximum
consideration of up to approximately $1.1bn in January 2009.
and the year
- Fatalities reduced by 57%, while a 20% improvement has been achieved on all
accidents.
- Gold production 4.982Moz - in line with market guidance.
- Total cash costs increased by $87/oz to $444/oz, due to lower production and
inflationary pressure, offset partially by weaker local currencies for the
latter part of the year.
- Hedge commitments reduced by 5.29Moz or 47% to 5.99Moz - company now better
positioned to materially participate in higher spot prices going forward.
- Hedge buy-backs results in an adjusted headline loss of $897m, against an
adjusted headline earnings of $278m in 2007.
- Mineral Resource after depletion increased 16% or 33.4Moz to 241.0Moz, while
Ore Reserves after depletion increased 2% to 74.9Moz - prior to Boddington
sale.
- Final dividend declared at 50 South African cents per share or 5 US cents per
share, resulting in a total dividend of 100 South African cents or 11 US cents
per share for the year.
Quarter
ended ended
Dec Sep
2008 2008
SA rand / Metric
Operating review
Gold
Produced - kg / oz
(000) 39,429 39,336
Price received 1 - R/kg /
$/oz 219,329 160,127
Price received normalised for
accelerated settlement of non-hedge
derivatives 1 - R/kg /
$/oz 219,329 160,127
Total cash costs - R/kg /
$/oz 134,813 121,440
Total production costs - R/kg /
$/oz 172,312 152,945
Financial review
Gross profit (loss) - Rm / $m 2,187 851
Gross profit (loss) adjusted for the gain
(loss) on unrealised non-hedge
derivatives and other commodity
contracts 2 - Rm / $m 1,241 184
Adjusted gross profit normalised for
accelerated settlement of non-hedge
derivatives 2 - Rm / $m 1,241 184
(Loss) profit attributable to equity
shareholders - Rm / $m (11,869) (247)
Headline earnings (loss) 3 - Rm / $m 516 (298)
Headline (loss) earnings adjusted for
the gain (loss) on unrealised non-
hedge derivatives and other commodity
contracts and fair value adjustments on
convertible bond 4 - Rm / $m (178) (956)
Capital expenditure - Rm / $m 2,994 2,623
(Loss) profit per ordinary share -
cents/share
Basic (3,335) (71)
Diluted (3,335) (71)
Headline 3 145 (86)
Headline (loss) earnings adjusted for
the gain (loss) on unrealised non-
hedge derivatives and other commodity
contracts and fair value adjustments on
convertible bond 4 -
cents/share (50) (275)
Year
ended ended
Dec Dec
2008 2007
Restated
SA rand / Metric
Operating review
Gold
Produced - kg / oz
(000) 154,958 170,365
Price received 1 - R/kg /
$/oz 130,522 142,107
Price received normalised for
accelerated settlement of non-hedge
derivatives 1 - R/kg /
$/oz 185,887 142,107
Total cash costs - R/kg /
$/oz 117,462 80,490
Total production costs - R/kg /
$/oz 150,149 107,415
Financial review
Gross profit (loss) - Rm / $m 939 (1,309)
Gross profit (loss) adjusted for the gain
(loss) on unrealised non-hedge
derivatives and other commodity
contracts 2 - Rm / $m (2,945) 5,893
Adjusted gross profit normalised for
accelerated settlement of non-hedge
derivatives 2 - Rm / $m 5,072 5,893
(Loss) profit attributable to equity
shareholders - Rm / $m (16,105) (4,269)
Headline earnings (loss) 3 - Rm / $m (4,375) (4,136)
Headline (loss) earnings adjusted for
the gain (loss) on unrealised non-
hedge derivatives and other commodity
contracts and fair value adjustments on
convertible bond 4 - Rm / $m (7,197) 1,971
Capital expenditure - Rm / $m 9,905 7,444
(Loss) profit per ordinary share -
cents/share
Basic (5,077) (1,517)
Diluted (5,077) (1,517)
Headline 3 (1,379) (1,470)
Headline (loss) earnings adjusted for
the gain (loss) on unrealised non-
hedge derivatives and other commodity
contracts and fair value adjustments on
convertible bond 4 - cents/share (2,269) 700
Quarter
ended ended
Dec Sep
2008 2008
US dollar / Imperial
Operating review
Gold
Produced - kg /oz
(000) 1,268 1,265
Price received 1 - R/kg
/ $/oz 687 644
Price received normalised for
accelerated settlement of non-hedge
derivatives 1 - R/kg
/ $/oz 687 644
Total cash costs - R/kg
/ $/oz 422 486
Total production costs - R/kg
/ $/oz 540 612
Financial review
Gross profit (loss) - Rm / $m 390 186
Gross profit (loss) adjusted for the gain
(loss) on unrealised non-hedge
derivatives and other commodity
contracts 2 - Rm / $m 125 28
Adjusted gross profit normalised for
accelerated settlement of non-hedge
derivatives 2 - Rm / $m 125 28
(Loss) profit attributable to equity
shareholders - Rm / $m(1,016) 51
Headline earnings (loss) 3 - Rm / $m 234 44
Headline (loss) earnings adjusted for
the gain (loss) on unrealised non-
hedge derivatives and other commodity
contracts and fair value adjustments on
convertible bond 4 - Rm / $m (17) (119)
Capital expenditure - Rm / $m 302 338
(Loss) profit per ordinary share -
cents/ share
Basic (285) 15
Diluted (285) 15
Headline 3 66 13
Headline (loss) earnings adjusted for
the gain (loss) on unrealised non-
hedge derivatives and other commodity
contracts and fair value adjustments on
convertible bond 4 - cents/share (5) (34)
Year
ended ended
Dec Dec
2008 2007
Restated
US dollar / Imperial
Operating review
Gold
Produced - kg /
oz
(000) 4,982 5,477
Price received 1 - R/kg
/ $/oz 485 629
Price received normalised for
accelerated settlement of non-hedge
derivatives 1 - R/kg
/ $/oz 702 629
Total cash costs - R/kg
/ $/oz 444 357
Total production costs - R/kg
/ $/oz 567 476
Financial review
Gross profit (loss) - Rm /
$m 594 (248)
Gross profit (loss) adjusted for the gain
(loss) on unrealised non-hedge
derivatives and other commodity
contracts 2 - Rm / $m (384) 835
Adjusted gross profit normalised for
accelerated settlement of non-hedge
derivatives 2 - Rm / $m 626 835
(Loss) profit attributable to equity
shareholders - Rm / $m(1,195) (668)
Headline earnings (loss) 3 - Rm / $m (30) (648)
Headline (loss) earnings adjusted for
the gain (loss) on unrealised non-
hedge derivatives and other commodity
contracts and fair value adjustments on
convertible bond 4 - Rm / $m (897) 278
Capital expenditure - Rm / $m 1,201 1,059
(Loss) profit per ordinary share -
cents/share
Basic (377) (237)
Diluted (377) (237)
Headline 3 (9) (230)
Headline (loss) earnings adjusted for
the gain (loss) on unrealised non-
hedge derivatives and other commodity
contracts and fair value adjustments on
convertible bond 4 - cents/share (283) 99
Notes:
1. Refer to note C "Non-GAAP disclosure" for the definition.
2. Refer to note B "Non-GAAP disclosure" for the definition.
3. Refer to note 9 "Notes" for the definition.
4. Refer to note A "Non-GAAP disclosure" 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 2008
Production
%
oz (000) Variance 2
Mponeng 144 (12)
AngloGold Ashanti Mineracao 83 -
Kopanang 91 8
Cripple Creek & Victor 78 24
Moab Khotsong 71 4
Morila 3, 4 47 24
Siguiri 3 81 13
Sunrise Dam 85 (26)
Great Noligwa 63 (2)
TauTona 70 (11)
Serra Grande 3 24 20
Sadiola 3, 4 49 20
Savuka 18 20
Iduapriem 57 14
Yatela 3, 4 16 (11)
Cerro Vanguardia 3 56 30
Tau Lekoa 36 (5)
Navachab 20 18
Obuasi 98 7
Geita 52 (30)
Other 27 8
Sub-total 1,268 -
Less equity accounted investments
AngloGold Ashanti
Total cash costs
%
$/oz Variance 2
Mponeng 222 (23)
AngloGold Ashanti Mineracao 234 (29)
Kopanang 310 (26)
Cripple Creek & Victor 322 -
Moab Khotsong 317 -
Morila 3, 4 385 (17)
Siguiri 3 478 (9)
Sunrise Dam 486 (21)
Great Noligwa 452 (25)
TauTona 325 (27)
Serra Grande 3 260 (20)
Sadiola 3, 4 386 (3)
Savuka 255 (58)
Iduapriem 577 2
Yatela 3, 4 561 (11)
Cerro Vanguardia 3 464 (30)
Tau Lekoa 478 (16)
Navachab 512 (5)
Obuasi 712 5
Geita 921 32
Other
Sub-total 422 (13)
Less equity accounted investments
AngloGold Ashanti
Gross profit (loss) adjusted
for the gain (loss) on
unrealised non-hedge
derivatives and other
commodity contracts 1
%
$m Variance 2
Mponeng 60 20
AngloGold Ashanti Mineracao 27 50
Kopanang 24 200
Cripple Creek & Victor 20 67
Moab Khotsong 12 500
Morila 3, 4 11 120
Siguiri 3 10 67
Sunrise Dam 9 190
Great Noligwa 8 367
TauTona 7 (59)
Serra Grande 3 7 40
Sadiola 3, 4 5 25
Savuka 4 100
Iduapriem 3 400
Yatela 3, 4 3 100
Cerro Vanguardia 3 2 113
Tau Lekoa 2 200
Navachab 2 100
Obuasi (33) (50)
Geita (58) (32)
Other 18 100
Sub-total 143 286
Less equity accounted investments (18) 100
AngloGold Ashanti 125 347
1 Refer to note B "Non-GAAP disclosure" for the definition.
2 Variance December 2008 quarter on September 2008 quarter - increase
(decrease).
3 Attributable.
4 Equity accounted investments.
Rounding of figures may result in computational discrepancies.
Financial and operating review
OVERVIEW FOR THE QUARTER AND YEAR
FOURTH QUARTER
Five employees were fatally injured during the quarter, with four accidents
occurring in the South African region and one at Obuasi in Ghana. This brings
the total number of fatalities to 14 for 2008, against 34 fatal accidents in
2007. This is equivalent to a fatal injury frequency rate (FIFR) of
0.09 per million hours worked for the year, against 0.21 for 2007, representing
a 57% improvement and is the lowest rate that the company has ever recorded.
The LTIFR rate for the year ended 11% lower than that recorded in 2007, while a
20% year-on-year improvement has been achieved on all injuries.
AngloGold Ashanti remains committed to a continuing focus on raising safety
standards and achieved this quarter, its commitment of having all its mining
operations OHSAS 18001 compliant. In addition, its South African metallurgical
plants and the Tropicana exploration project in Australia also achieved
certification.
Gold production for the fourth quarter was marginally higher than market
guidance at 1.27Moz, reflecting improved performance across all assets, with
the exception of Geita. Total cash costs at $422/oz, was 13% lower than the
previous quarter, primarily due to once-off ore stock pile movements not
repeating during the fourth quarter, weaker local currencies and reduced fuel
costs.
The South African operations were 3% lower at 16,185kg, primarily due to lower
production from Mponeng which was constrained by face-length flexibility and
vamping activities. Despite the lower gold production, total cash costs reduced
1% to R101,675/kg following lower summer power tariffs and delivery of cost
saving initiatives. Savuka and Kopanang had solid quarters with gold production
up 18% and 8% respectively, while Moab Khotsong continues to build-up
production flexibility, up 3% for the quarter. The South African operations
continue to provide currency leverage to a weakening Rand, and dollar
denominated total cash costs closed 23% lower at $318/oz, with operational
free-cashflow increasing significantly from $52m to $118m.
Uranium production increased 2% during the quarter to 353,000 pounds, and
629,000 pounds of uranium was on hand and at the converters at year-end. Total
uranium production for the year was 4% higher than the prior year at 1.3m
pounds, notwithstanding the power related production stoppages earlier in the
year. Following the cancelling of some uranium contracts during the year, the
company is poised to achieve greater exposure to spot uranium prices in 2009.
The other African assets also had solid performances. Production from the
Ghanaian operations increased by 9% to 155,000oz, with both Obuasi and
Iduapriem growing production for the second consecutive quarter.
Siguiri in Guinea saw production 13% higher at 81,000oz following improved
plant availability with total cash costs reduced by 9%. The Malian operations
increased production by 15% and reduced total cash costs by 12% to $411/oz.
Production at Navachab in Namibia was 18% higher at 20,000oz and total cash
costs 5% lower at $512/oz. Geita in Tanzania had a difficult quarter, affected
by SAG mill breakdowns, which resulted in production reducing 30% to 52,000oz
and consequently, total cash costs increasing 32%.
The Americas also delivered solid results, with Cerro Vanguardia in Argentina
increasing production by 30% to 56,000oz, consistent with the steps taken in
the prior quarter to rectify plant constraints. Total cash costs consequently
reduced 30% to $464/oz, and operational free cashflow increased to $7m from a
loss in the previous quarter of $10m.
The Brazilian operations saw production 5% higher at 108,000oz, led by Serra
Grande with improved gold production, higher throughput and improved grades.
Total cash costs for Brazil was significantly lower at $255/oz, assisted by the
higher gold production, improved cost management and a weakening local
currency. Operational free- cashflow increased 83% to $42m for the quarter.
Production at CC&V in the USA was 24% higher at 78,000oz, while total cash
costs were flat at $322/oz, with operational free cashflow increasing 47% to
$25m.
The company continued to execute its hedge reduction strategy and further
reduced hedge commitments from 6.30Moz to 5.99Moz at 31 December 2008, while
the net delta hedge position reduced 0.57Moz for the quarter to 5.22Moz. This
brings the total year`s reduction of hedge commitments to 5.29Moz or 47% for
the year, while the net delta reduced by 5.17Moz or 46%. The company is now
better positioned to participate in higher spot prices going forward.
During the quarter the received price of $687/oz was 7% higher than the
previous quarter and 13.6% below the average spot price. This compares
favourably with the previous quarter where the discount to spot was 26%. The
adjusted headline loss was $17m, distorted by annual accounting adjustments
(net of tax) aggregating $48m which included write-downs of Geita stockpiles
($19m) and stores in Continental Africa ($21m) and current and deferred tax
provision ($8m).
During the quarter, the company recorded exceptional asset impairment charges
aggregating $1.25bn (net of tax) in relation to the former Ashanti assets
(comprising Obuasi, Geita and Iduapriem) and certain other investments and
sundry assets. This adjustment which is of a non- cash nature is based on
assumptions relating to market conditions which include the lower gold forward
curve, higher discount rates, higher power tariffs in Ghana and reduced
reserves at Geita. The asset impairment charges are excluded from both headline
and adjusted headline earnings.
On 21 November 2008, AngloGold Ashanti announced the signing of a $1bn term
facility agreement with Standard Chartered Bank to refinance its convertible
bond. The Term Facility is available to be drawn during February 2009 for the
purpose of repaying the $1bn convertible bond due on 27 February 2009. The Term
Facility is for an initial one year period from the date of the first drawdown
in February 2009 but may be extended, if required, at the option of AngloGold
Ashanti until 30 November 2010. The covenant terms of the Term Facility are
similar to those of AngloGold Ashanti`s existing $1.15bn Revolving Credit
Facility, save that the amounts drawn under the Term Facility will bear an
interest margin of 4.25% for the first six months after the first drawdown and
5.25% thereafter.
On 15 December 2008 the company announced the purchase of Sao Bento Gold
Company Limited ("SBG") and its wholly-owned subsidiary, Sao Bento Mineracao
S.A. ("SBMSA") from Eldorado Gold Corporation ("Eldorado") for a consideration
of $70m. The purchase price was settled through the issuance of 2,701,660
AngloGold Ashanti shares. The purchase of SBG and SBMSA gives AngloGold Ashanti
access to the Sao Bento mine, a gold operation located in the immediate
vicinity of AngloGold Ashanti`s proposed Corrego do Sitio mine in Brazil. The
acquisition of the Sao Bento mine provides AngloGold Ashanti with the potential
to double the scale of the proposed Corrego do Sitio mine, which once developed
will significantly enhance AngloGold Ashanti`s Brazilian asset base.
YEAR
The company`s total Mineral Resource before depletion increased by 40.5Moz for
the year. After depletion, this represents an increase of 33.4Moz, from
207.6Moz in 2007 to 241.0Moz in 2008. The largest single resource increase came
at La Colosa in Colombia, where 12.3Moz were delineated by the exploration
team. Significant other additions include 7.9Moz at Mponeng, 3.9Moz at Obuasi
following exploration work below 50 level, 1.6Moz at Boddington, 1.8Moz at
Savuka, 1.4Moz at Iduapriem, 1.2Moz at CC&V following successful exploration
and work completed on the mine life extension project, and 1.2Moz at Sadiola.
In 2008, AngloGold Ashanti recorded an increase in total ore reserves before
depletion of 7.7Moz. After depletion, this represents a 2.5% increase
year-on-year, from 73.1Moz in 2007 to 74.9Moz in 2008. Significant additions
included 2.8Moz at Mponeng, 1.3Moz at Obuasi due to revised mine design and
schedule, 1.1Moz at Boddington due to successful drilling and at Siguiri
0.6Moz, where the resources were upgraded from inferred to indicated at the
Seguelen NW and Sintroko deposits due to improved mining efficiencies.
Production for 2008 declined 9% to 4.98Moz, but within market guidance. South
African production declined 230,000oz, primarily as a result of the power
shortages experienced in South Africa and safety stoppages. Post the January
2008 power shortage incident, no further constraints were experienced during
the year and the company is now operating at 100% capacity, while utilising 93%
of its original power allocation in South Africa.
Production at Sunrise Dam was 167,000oz lower as anticipated following the
completion of mining the high grade zone in the MegaPit, and production at
Geita was 63,000oz lower following mill breakdowns. Cerro Vanguardia also had a
difficult year with production 50,000oz lower, due to lower feed grades and
problems associated with the agitators in the leach tanks in the first half of
the year. Encouragingly, Ghana posted a 6% increase in production, while the
Brazil operations maintained their solid performance.
Total cash costs for 2008 increased by $87/oz to $444/oz, primarily as a result
of the 9% lower gold production and cost escalation on wages and consumables,
offset partially by weaker local currencies during the latter part of the year.
Combined with the hedge buy-backs during the year, the adjusted headline
earnings reduced from $278m in 2007 to a loss of $897m for 2008.
A dividend of 50 South African cents (5 US cents) per share was declared for
the six months ended 31 December 2008. This represents a similar dividend
payout as per the interim year declaration, resulting in a total dividend for
the year of 100 South African cents (approximately 11 US cents) per share.
Post quarter end, on the 27 January 2009 the company announced the sale of its
33.33% interest in Boddington Mine to Newmont Mining Corporation for an
aggregate consideration of up to approximately $1.1 billion. The transaction
includes a cash payment of $750m upon closing; $240m due on 31 December 2009 in
either cash or shares and quarterly royalty payments to a maximum of $100m
based on a specified cash operating margin being achieved. All capital
expenditure incurred from 1 January 2009 is also to be reimbursed.
Boddington Mine was under development during the course of 2008 and is
scheduled to come into production during the course of 2009. As at the 31
December 2008, Boddington had attributable reserves of 6.7Moz and Mineral
Resources of 11.9Moz.
Production for 2009 is expected to be within a range of 4.9Moz to 5.0Moz, and
total cash costs are anticipated to be between $435/oz and $450/oz, based on
the following exchange rate assumptions: R9.75/$, A$/$0.675, BRL2.25/$ and the
Argentinean peso 3.65/$. Capital expenditure for the year is estimated to be
approximately $840m, and will be managed in line with profitability and
cashflow.
Production for the first quarter of 2009 is estimated to be 1.13Moz at an
average total cash costs of between $440/oz and $450/oz, assuming the following
exchange rates: R9.75/$, A$/$0.66, BRL2.25/$ and Argentinean peso 3.50/$.
Capital expenditure is estimated at $220m.
The table below provides guidance for the year in respect of forecast ounces
and total cash costs for 2009.
Forecast Expected
Production Cash
Ounces Cost
(000)* $/oz**
Great Noligwa 220 460 - 480
Kopanang 400 275 - 295
Tau Lekoa 150 455 - 475
Moab 300 280 - 300
VR Surface 115 360 - 380
TauTona 295 330 - 350
Savuka 65 440 - 460
Mponeng 530 260 - 280
Navachab 70 430 - 450
Morila 130 550 - 570
Yatela 90 440 - 460
Sadiola 130 495 - 515
Siguiri 300 495 - 515
Obuasi 400 620 - 640
Iduapriem 200 540 - 560
Geita 315 800 - 820
Cripple Creek 280 350 - 370
Serra Grande 80 340 - 360
AngloGold Ashanti Brazil 320 280 - 300
Cerro Vanguardia 160 410 - 430
Sunrise Dam 410 530 - 550
Total 4.9 - 5.0 435 - 450
* Attributable production
** Assumes the following exchange rates to the US dollar: R9.75/$,
A$/$0.675, BRL2.25/$ and the Argentinean peso 3.65/$
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.
- Rounding of figures may result in computational discrepancies.
Review of the gold market
The `deleveraging` that started with the collapse of Lehman Brothers continued
into the fourth quarter as financial markets struggled to come to terms with
the extent of the crisis and its global impact.
Continued liquidation took place across all metals and commodities including
gold. Having peaked at $910/oz in early October, the liquidation on the COMEX
over the ensuing month of almost 8Moz took the price down to the lows of the
quarter of $710/oz by early November. It is possible that the extent of this
decline was exacerbated by market participants who took advantage of the ease
with which gold can be used as a short-term funding mechanism.
Despite falling over $200/oz during the quarter, gold outperformed all of the
other metals and oil. The sell off to around $700/oz represented a decline of
just over 30% from the year`s high, whereas on a similar basis, platinum lost
68%, copper 67%, nickel 73% and the oil price plunged 77%.
In November speculative interest returned to gold, partly due to another wave
of US dollar weakness but also on hopes that another cut in production from
OPEC would lift the oil price and that this would in turn support the gold
price.
This rally was sustained through December when commodities in general started
to stage a recovery.
In addition, gold started to benefit from safe haven buying once again as
analysts began to highlight the potential inflationary impact of all of the co-
ordinated global activities of liquidity injections, stimulus packages and
interest rate cuts. During the month of December the gold price rallied 14%,
ending the year at $878/oz.
The gold price averaged $872/oz in 2008, 24% higher than the average for 2007
of $703/oz. The average price during the fourth quarter was $795/oz, marginally
higher than the average price during the fourth quarter of 2007 of $788/oz.
Investment Market
ETF holdings continued to grow during the period under review, against the
general trend in other investment vehicles. This is indicative of the fact that
ETF investors tend not to be driven by short- term price movements or
speculative opportunities but are rather longer-term investors who see gold as
a hedge against inflation or a portfolio diversifier. Total holdings at year
end were some 38Moz. Holdings increased during the quarter by some 3Moz,
including over 600,000oz invested in a new exchange traded fund listed on the
German Stock Exchange.
Producer Hedging
Very little activity took place in this area during the quarter and in
comparison to the volatility experienced in international markets, the
relatively small movements in the global hedge book were not a significant
driver of price or market sentiment.
Physical Demand
The retail sector and particularly the luxury goods market suffered globally as
a result of the credit squeeze and fears of recession. The gold jewellery
market, which accounts for some 70% of physical demand, was affected by this
trend, particularly in the US and in Europe, where jewellery is purchased as an
adornment, rather than as an investment product.
The exception to this trend was China, where jewellery sales continued at
similar level as the comparable period in 2007. However many Chinese exporters
of consumer goods have seen a drop in sales and it is likely that the internal
consumption market for jewellery will suffer as the effects of this decline
filter into the Chinese economy. The first quarter of the year, in particular
the Chinese New Year period in late January, is typically a period of peak
demand, but it is likely that consumption will slow down in March as retailers
restock cautiously.
Investment demand, in the form of bars and coins, has increased dramatically in
China over the recent period and 2008 is likely to show an increase of over
100% year-on-year when official figures are released later in the year. The
reasons for the increase relate to concern over other investment vehicles,
particularly housing and the stock exchange, but also the traditional view of
gold as a hedge against inflation and a safe haven in times of economic
uncertainty.
The US market was hard hit by concerns over the economy and sales were down in
all sectors of the market. In parallel, higher gold prices have driven
retailers to stock alternative jewellery products, using for example gold
plating or gold and silver in combination, in order to maintain price points.
Sales during the fourth quarter, which typically account for around 40% of
jewellery sales annually, were at significantly lower levels, even in
comparison to the lacklustre fourth quarter experienced in 2007. However,
stocks are also at record low levels, and it is possible that there will be
some revival in demand in the early part of 2009 as retailers restock.
Economic uncertainty also affected the Middle Eastern market, particularly in
tourist destinations such as Dubai. The local retail trade in the Gulf Region
declined as well as the tourist sector. As consumer spending slowed and the
impact of stock exchange falls took its toll, spending on discretionary and
luxury goods including jewellery, was affected.
Egyptian demand remained healthy despite high local gold prices (as the
Egyptian Lira weakened against the US dollar). In contrast, demand in Turkey,
where local gold prices also rose significantly but where the effects of the
global economic crisis were more apparent, experienced significant weakness
during the quarter, in both the jewellery as well as the coin sector.
Fabrication demand in Turkey declined (Turkey is a major exporter of gold
jewellery to the US and as such was affected by the downturn in US jewellery
sales).
In India, where jewellery purchases have a quasi- investment characteristic,
the third quarter had shown some revival in jewellery sales, after dampened
demand in the first half of the year, due to the lower and more stable price as
well as expectations of an eventual gold price increase.
In the fourth quarter, however, buying slowed as prices rose once again.
Fabrication demand (jewellery manufactured for export as well as for local
consumption) also showed a slight decrease in comparison to the preceding
period. If the second half of the year is viewed as a whole, however,
fabrication demand still shows a significant increase, in the order of
approximately 50%, over the same period in 2007.
Official Sector Sales
The current Central Bank Gold Agreement (CBGA) entered its fifth and final year
in September 2008.
Central Bank sales in the first quarter of the final year of the agreement
however reached only 50t, against a quota of 500t for the full year, which
seemed unlikely to be met.
Currencies
The Rand, Australian dollar and Brazilian Real all came under pressure from the
deleveraging that occurred across other asset classes. In the case of the Rand
and the Australian dollar, the decline was particularly severe in October, when
they lost 34% and 26% respectively against the US dollar.
Both of these currencies recovered somewhat during the remainder of the quarter
but never regained their initial levels. The Rand closed the quarter at
$/R9.455 which represents a depreciation of 14% over the quarter and the
Australian dollar closed at A$/$0.69, a depreciation of 14%.
The Brazilian Real experienced the same sell off during October as did all
emerging market currencies, however unlike the Rand, it did not stage any form
of sustained recovery through the balance of the quarter. The Real closed at
$/BRL 2.34 which represented a decline over the quarter of 21%.
Exploration
Total exploration expenditure inclusive of expenditure at equity accounted
joint ventures during the fourth quarter of 2008 amounted to $38m ($16m
brownfields, $22m greenfields), compared to $47m ($25m brownfields, $22m
greenfields).
Total exploration spend for the year was $183m ($87m brownfields, $96m
greenfields) compared to $167m ($75m brownfields, $92m greenfields) in 2007.
The company`s total Mineral Resource before depletion increased by 40.5Moz for
the year. After depletion, this represents an increase of 32.5Moz, from
207.6Moz in 2007 to 240.1Moz in 2008. The largest single resource increase came
at La Colosa in Colombia, where 12.3Moz were delineated by the exploration
team. Significant other additions include 7.9Moz at Mponeng, 3.9Moz at Obuasi
following exploration work below 50 level, 1.6Moz at Boddington, 1.8Moz at
Savuka, 1.4Moz at Iduapriem, 1.2Moz at CC&V following successful exploration
and work completed on the mine life extension project, and 1.2Moz at Sadiola.
In 2008, AngloGold Ashanti recorded an increase in total ore reserves before
depletion of 7.7Moz. After depletion, this represents a 2.5% increase year-on-
year, from 73.1Moz in 2007 to 74.9Moz in 2008. Significant additions included
2.8Moz at Mponeng, 1.3Moz at Obuasi due to revised mine design and schedule,
1.1Moz at Boddington due to successful drilling and at Siguiri 0.6Moz, where
the resources were upgraded from inferred to indicated at the Seguelen NW and
Sintroko deposits due to improved mining efficiencies.
BROWNFIELDS EXPLORATION
In South Africa, surface drilling continued in the Project Zaaiplaats area,
with technical issues delaying borehole MZA9 and MMB5 reaching a depth of
3,172m. The Vaal Reef was faulted out by a minor fault at a depth of 3,132m.
Borehole MGR8 has now advanced to a depth of 1,596m and surface drilling in the
Moab North area continued with the long deflection of borehole MCY4
intersecting C Reef at 2,883m. The hole is currently at a depth of 3,003m.
At Iduapriem in Ghana, Mineral Resource conversion drilling at Ajopa was
completed, with an additional 23 Reverse Circulation (RC) (1,828m) holes and 26
Diamond drill holes (DDH) (3,127m) being drilled. At Obuasi, exploration
continued with 3,055m of DDH drilling below 50 level and 524m of DDH Drilling
above 50 Level.
In Argentina at Cerro Vanguardia, the exploration programme continued with
1,742m of recognisance drilling. A further 8,372m of DDH drilling was completed
on accessing the underground mining potential. Geological mapping commenced at
El Volcan in anticipation of geophysical surveys in 2009.
In Australia at Boddington, there were three rigs employed on the Mineral
Resource conversion and near mine exploration diamond drilling program.
During the quarter, approximately 16,569 metres were drilled in 27 holes,
bringing year to date drilling totals to 101,700 metres in 141 holes.
At Sunrise Dam, 5,378m of underground DDH (44 holes) was completed during the
quarter.Drilling continued to target the extensions to the high-grade gold
mineralisation in GQ, Dolly and Cosmo in positions adjacent to the current
development. Additional targeting of the Carey Shear, 1km below the mine
continued to intersect broad gold zones and granite-hosted mineralisation.
In Brazil, at the Corrego do Sitio Sulphide Project, drilling continued with
10,810m being drilled. At the Lamego project a further 7,380m of drilling was
completed, while exploration drilling started at the Nova Lima South project
with 2,032m being drilled on targets defined by IP surveys and surface mapping.
At Serra Grande, exploration was completed at Penquizao and Penquizao east with
3,082m being drilled. A further 4,632m of Mineral Resource definition drilling
was also completed during the quarter.
At Siguiri in Guinea, exploration focused on the final interpretation of the
Sintroko South deposit (situated 8km south of the mine). Diamond drilling to
acquire additional geological information, density data and to validate RC
results were completed, and evaluation of the data resulted in a significant
increase in the Indicated Mineral Resource. Mining will commence in the first
quarter of 2009.
Drilling, based on anomalous soil sampling results on the extensions to the
north, east and west of the main Sintroko deposit, was carried out. Good
results from the north and western extensions, indicating potential new Mineral
Resources close to the main Sintroko deposit, were received.
Also in Guinea, geochemical soil sampling programs were conducted in the
Corridor Block (14km northwest of the mine) and in Block 1 to the north and
north east of current mining operations, east of Setiguia village and south of
the Sintroko Project. Encouraging results were obtained from this sampling in
the northwest, north and northeast of the Kintinian-Setiguia villages. These
will be drill tested in 2009.
At Geita in Tanzania, exploration activities were focused on Star & Comet,
Nyankanga, Area 3 and Nyamalembo projects. RC drilling was completed along the
northern extension of Star and Comet. A total of 5 RC holes (696m) were drilled
during the quarter and further exploration will be planned after completion of
geological interpretation.
DDH drilling was completed at Geita Hill and Nyankanga to test the potential
for gold mineralisation beyond the limit of the open pit; for future
underground mining. A total of 3 holes (1,813m) were drilled during the
quarter.
RC infill and strike extension drilling to test for potential oxide Mineral
Resources commenced in the Area 3 West-Kukuluma Gap. Currently 11 holes
(1,577m) have been completed.
Reconnaissance RC drilling to follow up on grab sample anomalies was completed
at Nyamalembo Hill and current results show significant potential.
The high resolution airborne magnetic survey was completed in November.
At Morila in Mali, a revised geological model including lithological overview,
tectonic setting and magmatism has been put forward. A revised exploration
program proposal is now under consideration.
At Sadiola, Mineral Resource modelling is underway for Sekokoto Main. The Phase
10 diamond core drill programme for metallurgical testing of the deep sulphide
orebody was completed at the end of November.
A Mineral Resource conversion drilling program commenced in the FE3S-FE4 gap.
The program is aimed at oxide mineralisation in the western closure of pushback
3 and sulphide mineralisation in pushback 2. A total of 38 RC holes amounting
to 5,506m were completed.
At Sekokoto SE an infill drilling program of 81 RC holes amounting to 1,562m
was completed. This programme was drilled to verify the continuity of
mineralisation intersected in a 2006 Air Core drilling campaign.
At Yatela, infill drilling was completed at Dinguilou with a total of 6,214m
being drilled. In December drilling started at Niamboulama Hill (1,460m) and
along the gravity low to the South of the pit (210m).
At Navachab in Namibia, two geochemical soil sampling grids over favourable
structural and lithological targets on the farms Okakoara and Okatji (Townlands
EPL 3275) have been established, and sampling is underway.
Drilling during the last quarter of 2008 focused on the Gecko and
Steenbok-Starling targets. 2,200m of RC drilling has been conducted at Gecko
since October 2008. Drilling focused on the down plunge extension of the ore
body as well as infill. At Steenbok-Starling, 1,440m of RC drilling comprising
24 holes was completed. Sampling of the Zebra soil grid was completed in
December and samples were submitted.
In November, Spectrem Air Limited conducted an airborne electromagnetic survey
over the Navachab area, and individual zones for follow up work were
identified. At Anomaly 16, a planned 14,606m of the exploration infill and
advanced grade control holes were completed.
On mine exploration focused on sterilising lateral extensions and closing
information gaps to reduce amount of Inferred Mineral Resource within the
conceptual super pit. Drilling was done in and around the Main Pit with DDH
rigs deployed on relatively deeper holes (2,871m) and RC rigs completing
shallower holes (4,669m).
At Cripple Creek & Victor in the United States, drilling continued in the Main
Cresson area, Schist Island, Squaw Gulch and near the old Victor Pads with a
total of 15,690m being drilled.
GREENFIELDS
Greenfields exploration activities continued in six countries (Australia,
Colombia, the DRC, China, the Philippines, and Russia) during the fourth
quarter of 2008. A total of 44,264m of diamond drilling (DDH), reverse
circulation (RC), and aircore (AC) drilling was completed during the fourth
quarter of 2008, at existing priority targets and delineating new targets in
Australia, the DRC, Russia and Colombia.
In SE Asia, the grant of the Mapawa title in the Philippines is being awaited
with all requirements completed and submitted to the relevant government
agency. Project generation activities and evaluation of opportunities are
ongoing in a number of other areas in the region.
In the Democratic Republic of Congo, exploration activities over the 7,495km2
Concession 40 licence (AngloGold Ashanti 86.22% and OKIMO 13.78%), were
suspended in November 2008, following the deteriorating security situation
which led to a precautionary withdrawal of most non-essential staff from the
concession. Prior to the withdrawal, a total of 1,253m of diamond drilling was
completed within the high-grade part of the Mongbwalu resource area, bringing
the total metres drilled during 2008 to 8,824m. The best results received were
7.3m @ 5.597g/t from the Mongbwalu resource area, and an intersection of 10.26m
@ 3.395g/t (399.48-409.74m) 4km along strike at the Issuru prospect.
Regional exploration around Bunia West, Petsi, Mont Tsi-Nizi, Camp 3 and Lodjo
areas, included soil sampling, regolith mapping and trenching.
Results from infill soil sampling from the Pesti prospect defined an anomaly,
approximately 450m wide and 300m long, while other regional results received
were generally poor. Interpretation of the regional airborne EM and
aeromagnetic surveys completed in third quarter is underway.
In China, a program of diamond drilling and trenching was completed at the
Jinchanggou project. The work was designed to test the 16km long gold-in-soil
anomaly identified in early 2008. A total of 18 holes were drilled for 4,280
metres, together with a total volume of 548m3 trenching were completed. Despite
intersecting significant intervals of intense alteration and shearing in
drilling, analytical results to date have been disappointing and a review of
the project will be undertaken early in the first quarter 2009.
Greenfields exploration in the America`s region during the quarter was
undertaken primarily in Colombia, whilst opportunities reviews were completed
in other areas. In Colombia, Greenfield`s work was completed by Anglogold
Ashanti and by joint venture partners B2Gold Corp., Mineros S.A.
and Glencore International. AngloGold Ashanti`s component focused upon
reconnaissance exploration to drill target preparation on 39 target areas in
Colombia in addition to on-going preparatory work and La Colosa. B2Gold Corp.
continued drilling at Gramalote and at La Quebradona. Mineros S.A. continued
with exploration work including drilling programs on one target. Glencore
International remained focused on early stage exploration and conducted
airborne geophysical surveys within the JV areas. With respect to Colombian
geological, technical and field teams, a daily average of approximately 633
field employees (including an average of 78 geologist) and contractors were
active in all phases of Colombian exploration during the quarter. Drill
meterage from all Colombian drilling during the fourth quarter, including that
of JV partners, was 9,522 metres, bringing the year to a total of 52,752 metres
completed on four projects. AngloGold Ashanti activities during the year
includes flying in- house airborne magnetometry and radiometric surveys. During
the fourth quarter 1,064 line kilometers were completed, bring the year`s total
to 11,463 line kilometers completed. AngloGold Ashanti has 408 mineral tenement
contracts in Colombia totalling 743,420 ha.
At the La Colosa (100% AGA) Project, drilling
remained suspended throughout the quarter due to environmental permitting
issues. Whilst a resource of 12.3Moz was declared during the year, the La
Colosa mineral system remains open to the north, south and east, and various
additional targets immediately surround the known La Colosa mineralisation.
Four of these targets are drill ready.
At Gramalote (51% B2Gold, 49% AGA, B2 Earning-In), Phase IV (pre-feasibility)
diamond drilling at Gramalote Ridge, and Phase III drilling on various
satellite targets was undertaken with 4,505 metres drilled, totalling 30,131
metres for the year on the global Gramalote project, including drill
investigations at Gramalote Ridge (mostly resource infill work), La Trinidad
(7,019 metres in 20 holes), El Balzal, La Reina, El Topazio and La Malasia.
Drilling was completed on the Gramalote project during December and are being
analyzed.
In the La Quebradona porphyry Au (Cu) district (51% B2Gold, 49% AGA) a total of
4,151 metres were completed on various Au (Cu) porphyry targets during the
quarter, including 1,556 metres at El Chaquiro and 590 metres at El Tenador.
Thus, during 2008, B2Gold has completed 13,686 metres of core drilling on all
targets within the La Quebradona district. Once all results has been returned
for the AGA/ B2Gold JV Quebradona drilling program, AngloGold Ashanti will have
30 days to assimilate information and decide on it`s future level of
participation in the project (complete withdrawal, 49%, 51% or 65% interest).
Tropicana JV (AGA 70%, IGO 30%) Prefeasibility studies on the Tropicana Gold
Project are continuing and completion of the study is scheduled for the second
quarter of 2009.
A new resource estimate for Tropicana and Havana has been completed, while the
emphasis of drilling activities has been to increase the confidence to provide
Measured and Indicated Resources, the total resource has grown by nearly 1Moz
(100% basis). The new estimate, (on a 100% basis) reported at a 0.6 g/t and
0.7g/t cut-off grade for weathered and fresh rock and constrained within a pit
optimisation shell at an assumed long term gold price and A$/$ exchange rate of
$1,000/oz and A$/$0.80 is summarised below.
Tropicana Gold Project
Classification Mt Grade g/t Moz
Measured 19.94 2.38 1.53
Indicated 31.05 2.06 2.06
Inferred 24.27 1.83 1.43
Total 75.26 2.07 5.01
AngloGold Ashanti`s total attributable gold resource is 3.51Moz. A new mining
plan and schedule is being developed to incorporate the increase in the
resource.
The assessment for alternative lower cost power options for the project is
ongoing. The assessment is considering conventional on site diesel and gas
generation, grid reticulation, solar thermal power and number of other
innovative alternatives.
Submittal of formal environmental impact assessment documents is anticipated
during the first half of 2009, with the Western Australian Public Environmental
Review process typically taking approximately 12 months.
In parallel with the pre-feasibility study, exploration in the Tropicana JV has
focussed on high priority exploration targets within trucking distance of the
Tropicana Gold Project.
During the quarter a total of 633 aircore holes were drilled for 29,209 metres
(2,079 holes and 104,782m YTD) and 97 RC holes for 13,752m (144 holes and
19,828m YTD).
RC drilling has returned significant results from Rusty Nail, 5m @ 7.64 g/t Au,
Screaming Lizard 4.0 m @ 2.69 g/t Au and Havana South 10m 3.74 g/t Au, 5m @
22.5 g/t and 10m @ 10.1 g/t Au. The results from Havana South suggest the
potential for extensions to the resource and pit designs in this area.
Aircore drilling has identified anomalous results from Black Dragon (8m @ 0.17
g/t Au), Kamikaze (2m @ 0.57 g/t Au), Tumbleweed (1m @ 1.4 g/t Au) and Havana
South (3m @ 0.76 g/t Au and 4m @ 0.3 g/t Au).
Bronco Plains JV (AGA Earning 50.4%) The Bronco Plains farm-in and joint
venture agreement between the Tropicana JV and Image Resources` covers
approximately 230 square kilometres and abuts the western margin of the
Tropicana JV. Under the agreement, AngloGold Ashanti and Independence Group can
earn a combined 72% in the project by spending $2m. Aircore drilling of
approximately 10 kilometre long gold-in-soil anomaly will commence in 2009,
once regulatory approvals have been obtained.
In Russia, where AngloGold Ashanti operates in joint venture alliance with
Russian miner "OOO Polymetal", exploration and review work was continued during
the quarter.
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 Ore Reserves (the SAMREC 2000 Code). Mineral
Resources are inclusive of the Ore Reserve component unless otherwise stated.
Mineral Resources
The 2008 Mineral Resource increased by 40.5Moz before the subtraction of
depletion. After a depletion of 7.2Moz, the net increase is 33.4Moz to give a
total Mineral Resource of 241.0Moz. Mineral Resources were estimated at a gold
price of $1,000/oz (2007: $700/oz). The increased gold price resulted in
13.3Moz of added Mineral Resource while successful exploration and revised
modelling resulted in a further increase of 27.5Moz. The remaining loss of
0.3Moz is the result of various other reasons.
Moz
December 2007
Mineral Resource 207.6
Reductions
TauTona Transfer to Mponeng (1.9)
Great Noligwa Transfer of SV4 to Moab Khotsong (1.2)
Tau Lekoa Significant structure and facies changes
to the north of Tau Lekoa (1.2)
Other Total of non significant changes (1.4)
Additions
La Colosa Successful Greenfields exploration. 12.3
Mponeng Granting of the WUDL`s licence and
transfers from TauTona 7.9
Moab Khotsong Transfer of SV4 to Moab Khotsong 4.4
Obuasi Exploration below 50 level 3.9
Savuka Improved economic outlook as a result of
an increase in the gold price 1.8
Boddington Growth in Mineral Resources: Successful
near mine exploration drilling and
higher gold price 1.6
Iduapriem Due to increase in Mineral Resource gold
price and remodelling of Block
7&8 1.4
Cripple
Creek & Victor Successful exploration 1.2
Sadiola Increase in resource gold price, increase
in deep sulphides project 1.2
Siguiri Due to increase in Mineral Resource gold
price and increases in the Mineral
Resource at Sintroko and Foulata 1.0
Other Total of non significant changes 2.4
December 2008 Mineral Resource 241.0
Ore Reserves
The 2007 Ore Reserve increased by 7.7Moz before the subtraction of depletion.
After a depletion of 5.9Moz, the net increase is 1.8Moz to give a total Ore
Reserve of 74.9Moz.
A gold price of $720/oz was used for Ore Reserve estimates (2007: $600/oz). The
change in economic assumptions made from 2007 to 2008 resulted in the Ore
Reserve increasing by 2.7Moz while exploration and modelling resulted in an
additional increase of 5.0Moz.
Moz
December 2007 Ore Reserves 73.1
Reductions
TauTona Carbon Leader ground between 123-126 levels was
transferred to Mponeng.
As a change to scattered grid mining, lower value
estimates resulting from increased sampling and drilling
resulted in reductions. These were partially offset by a
higher Mine Call Factor and inclusion of the Carbon Leader
Eastern block. (1.5)
Geita Mineral Resource model changes and the application
of grade factors to mitigate low model confidence;
Cost increases (1.4)
Great Noligwa Transfer of SV4 section to Moab Khotsong (1.3)
Other Total of non significant changes (1.1)
Additions
Mponeng Increased grades, the additional ground from TauTona
123-126 level and improved economics which allowed
for the mining of Block 3&5 2.8
Obuasi The increase is due to a revised mine design and
schedule. 1.3
Boddington The growth in Ore Reserve is due to successful
drilling and a higher gold price 1.1
Siguiri The Seguelen NW and Sintroko deposits were upgraded
from Inferred to Indicated Mineral Resource and the
mining efficiency increased 0.6
Other Total of non significant changes 1.3
December 2008
Ore Reserves 74.9
By-products
A number of by-products are recovered as a result of the processing of gold Ore
Reserves.
These include 0.19Mt of uranium from the South African operations, 0.29Mt of
copper from Australia, 0.44Mt of sulphur from Brazil and 35.7Moz of silver from
Argentina. Details of the by-product Mineral Resources and Ore Reserves are
given in the 2008 Mineral Resource and Ore Reserve Report 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 and as part of the rolling audit programme,
AngloGold Ashanti 2008 Mineral Resources and Ore Reserves for the following
operations were submitted for external audit:
Mponeng
Tau Tona
Vaal River Surface Sources
Iduapriem
Navachab
Sadiola
Yatela
The company has been informed that the audit 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. These individuals are identified in the report entitled, "Mineral
Resource and Ore Reserve 2008 Report". The Competent Persons consent to the
inclusion of Exploration Results, Mineral Resources and Ore Reserves
information in this report, in the form and context in which it appears.
During the past decade, the company has developed and implemented a rigorous
system of internal and external reviews of Exploration Results, Mineral
Resources or Ore Reserves. A documented chain of responsibility exists from the
Competent Persons at the operations to the company`s Mineral Resource and Ore
Reserve Steering Committee. Accordingly, the Chairman of the Mineral Resource
and Ore Reserve Steering Committee, Mr VA Chamberlain, MSc (Mining
Engineering), BSc (Hons) (Geology), MAusIMM, assumes responsibility for the
Mineral Resource and Ore Reserve processes for AngloGold Ashanti and is
satisfied that the Competent Persons have fulfilled their responsibilities.
Notes
A detailed breakdown of the Mineral Resources and Ore Reserves is provided in
the report entitled, "Mineral Resource and Ore Reserve 2008 Report", which will
be available in the annual report section of the AngloGold Ashanti website
(www.AngloGoldAshanti.com) on or about 23 March 2009, 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 (attributable)
Category Tonnes Grade
million g/t
as at 31 December 2008
South Africa Measured 25.56 13.80
Indicated 739.87 3.27
Inferred 56.35 10.47
Total 821.77 4.09
Argentina Measured 11.01 1.73
Indicated 22.00 3.48
Inferred 4.97 4.11
Total 37.99 3.05
Australia Measured 101.25 1.19
Indicated 404.49 0.84
Inferred 154.79 0.89
Total 660.53 0.91
Brazil Measured 11.1 7.01
Indicated 13.46 6.49
Inferred 28.51 6.76
Total 53.07 6.74
Colombia Measured - -
Indicated - -
Inferred 409.77 1.01
Total 409.77 1.01
Democratic Republic of Congo Measured - -
Indicated - -
Inferred 29.25 2.69
Total 29.25 2.69
Ghana Measured 94.21 5.21
Indicated 138.91 2.86
Inferred 100.10 4.25
Total 333.23 3.94
Guinea Measured 33.53 0.63
Indicated 125.22 0.84
Inferred 64.08 0.90
Total 222.82 0.83
Mali Measured 19.40 1.64
Indicated 26.39 2.48
Inferred 11.10 2.30
Total 56.89 2.16
Namibia Measured 13.83 0.74
Indicated 61.94 1.26
Inferred 42.31 1.09
Total 118.08 1.14
Tanzania Measured - -
Indicated 83.84 3.63
Inferred 25.12 3.81
Total 108.97 3.67
United States of America Measured 255.90 0.87
Indicated 183.75 0.73
Inferred 83.61 0.66
Total 523.26 0.79
Total Measured 565.80 2.38
Indicated 1,799.87 2.23
Inferred 1,009.96 2.12
Total 3,375.63 2.22
Contained Contained
Category gold gold
tonnes Moz
as at 31 December 2008
South Africa Measured 352.57 11.34
Indicated 2,416.79 77.70
Inferred 590.06 18.97
Total 3,359.42 108.01
Argentina Measured 19.04 0.61
Indicated 76.49 2.46
Inferred 20.45 0.66
Total 115.98 3.73
Australia Measured 120.77 3.88
Indicated 340.15 10.94
Inferred 138.43 4.45
Total 599.35 19.27
Brazil Measured 77.80 2.50
Indicated 87.36 2.81
Inferred 192.59 6.19
Total 357.75 11.50
Colombia Measured - -
Indicated - -
Inferred 415.45 13.36
Total 415.45 13.36
Democratic Republic of Congo Measured - -
Indicated - -
Inferred 78.53 2.52
Total 78.53 2.52
Ghana Measured 490.68 15.78
Indicated 397.31 12.77
Inferred 425.27 13.67
Total 1,313.26 42.22
Guinea Measured 21.25 0.68
Indicated 105.53 3.39
Inferred 57.85 1.86
Total 184.63 5.94
Mali Measured 31.86 1.02
Indicated 65.32 2.10
Inferred 25.49 0.82
Total 122.68 3.94
Namibia Measured 10.25 0.33
Indicated 78.05 2.51
Inferred 46.25 1.49
Total 134.55 4.33
Tanzania Measured - -
Indicated 304.10 9.78
Inferred 95.77 3.08
Total 399.87 12.86
United States of America Measured 223.31 7.18
Indicated 134.97 4.34
Inferred 55.60 1.79
Total 413.88 13.31
Total Measured 1,347.53 43.32
Indicated 4,006.08 128.80
Inferred 2,141.75 68.86
Total 7,495.36 240.98
Ore Reserves by country (attributable)
Category Tonnes Grade
million g/t
as at 31 December 2008
South Africa Proved 13.72 7.81
Probable 215.10 4.37
Total 228.82 4.58
Argentina Proved 9.99 1.39
Probable 12.29 3.52
Total 22.27 2.56
Australia Proved 67.82 1.10
Probable 214.50 0.90
Total 282.33 0.95
Brazil Proved 7.77 6.44
Probable 7.02 5.82
Total 14.79 6.15
Ghana Proved 56.85 4.24
Probable 36.43 3.82
Total 93.28 4.07
Guinea Proved 56.13 0.56
Probable 67.11 1.04
Total 123.24 0.82
Mali Proved 9.29 1.87
Probable 6.65 2.26
Total 15.94 2.03
Namibia Proved 7.21 0.89
Probable 27.58 1.28
Total 34.78 1.20
Tanzania Proved - -
Probable 54.30 2.93
Total 54.30 2.93
United States Proved 112.57 0.93
Probable 55.70 0.87
Total 168.27 0.91
Total Proved 341.35 1.89
Probable 696.67 2.42
Total 1,038.02 2.24
Contained Contained
Category gold gold
tonnes Moz
as at 31 December 2008
South Africa Proved 107.13 3.44
Probable 939.79 30.21
Total 1,046.92 33.66
Argentina Proved 13.90 0.45
Probable 43.24 1.39
Total 57.13 1.84
Australia Proved 74.54 2.40
Probable 192.57 6.19
Total 267.11 8.59
Brazil Proved 50.06 1.61
Probable 40.87 1.31
Total 90.93 2.92
Ghana Proved 240.89 7.74
Probable 139.10 4.47
Total 379.98 12.22
Guinea Proved 31.48 1.01
Probable 69.64 2.24
Total 101.12 3.25
Mali Proved 17.33 0.56
Probable 15.02 0.48
Total 32.35 1.04
Namibia Proved 6.39 0.21
Probable 35.19 1.13
Total 41.58 1.34
Tanzania Proved - -
Probable 159.06 5.11
Total 159.06 5.11
United States Proved 104.60 3.36
Probable 48.59 1.56
Total 153.19 4.93
Total Proved 646.31 20.78
Probable 1,683.07 54.11
Total 2,329.38 74.89
Hedge position
HEDGE POSITION
As at 31 December 2008, the net delta hedge position was 5.22Moz or 162t (at 30
September 2008: 5.79Moz or 180t), representing a further reduction of 0.57Moz
for the quarter. The total commitments of the hedge book as at 31 December 2008
was 5.99Moz or 187t, a reduction of 0.31Moz from the position as at 30
September 2008.
The marked-to-market value of all hedge transactions making up the hedge
positions was a negative $2.68bn (negative R25.36bn), decreasing by $0.29bn
(R0.80bn increase) over the quarter. The marked-to-market value after the
credit risk adjustment of all hedge transactions making up the hedge positions
was a negative $2.46bn (negative R23.25bn). This value was based on a gold
price of $872.15/oz, exchange rates of R9.455/$ and A$/$0.6947 and the
prevailing market interest rates and volatilities at that date.
The company`s received price for the fourth quarter was $687/oz, 13.6% below
the average spot price for the same period.
During the course of 2008, the hedge book has been reduced by 5.17Moz on a
delta basis and the committed ounces have reduced by 5.29Moz.
As at 6 February 2009, the marked-to-market value before the credit risk
adjustment of the hedge position was a negative $2.94bn (negative R28.97bn),
based on a gold price of $913.50/oz and exchange rates of R9.840/$ and
A$/$0.6528 and the prevailing market interest rates and volatilities.
These marked-to-market valuations are in no way predictive of the future value
of the hedge position, nor of future impact on the revenue of the company. The
valuation represents the theoretical cost of closing all hedge contracts at the
time of valuation, using prevailing market prices and rates.
The following table indicates the group`s commodity hedge position at 31
December 2008.
Year 2009 2010 2011
DOLLAR GOLD
Forward contracts Amount (kg) *(5,960) 8,354 11,765
US$/oz $1,199 $204 $383
Put options sold Amount (kg) 4,043 4,226 3,048
US$/oz $671 $708 $533
Call options sold Amount (kg) 14,805 33,394 38,312
US$/oz $442 $537 $530
RAND GOLD
Forward contracts Amount (kg) *(1,866)
Rand per kg R157,213
A DOLLAR GOLD
Forward contracts Amount (kg) 280 3,110
A$ per oz A$852 A$652
Call options
purchased Amount (kg) 1,244 3,110
A$ per oz A$694 A$712
Delta (kg) (4,501) (36,523) (44,466)
** Total net gold:
Delta (oz) (144,720) (1,174,250) (1,429,620)
Year 2012 2013 2014-2016
DOLLAR GOLD
Forward contracts Amount (kg) 11,944 9,518 2,845
US$/oz $404 $408 $510
Put options sold Amount (kg) 1,882 1,882 1,882
US$/oz $430 $440 $450
Call options sold Amount (kg) 24,461 17,857 22,067
US$/oz $622 $601 $606
RAND GOLD
Forward contracts Amount (kg)
Rand per kg
A DOLLAR GOLD
Forward contracts Amount (kg)
A$ per oz
Call options
purchased Amount (kg)
A$ per oz
Delta (kg) (31,629) (24,106) (20,998)
** Total net gold:
Delta (oz) (1,016,910) (775,040) (675,070)
Year Total
DOLLAR GOLD
Forward contracts Amount (kg) 38,466
US$/oz $467
Put options sold Amount (kg) 16,963
US$/oz $579
Call options sold Amount (kg) 150,896
US$/oz $557
RAND GOLD
Forward contracts Amount (kg) * (1,866)
Rand per kg R157,213
A DOLLAR GOLD
Forward contracts Amount (kg) 3,390
A$ per oz A$669
Call options purchased Amount (kg) 4,354
A$ per oz A$707
Delta (kg) (162,223)
** Total net gold:
Delta (oz) (5,215,610)
* Indicates a net long position resulting from forward purchase contracts.
** The Delta of the hedge position indicated above is the equivalent gold
position that would have the same marked-to-market sensitivity for a small
change in the gold price. This is calculated using the Black-Scholes option
formula with the ruling market prices, interest rates and volatilities as at 31
December 2008.
Rounding of figures may result in computational discrepancies.
The following table indicates the group`s currency hedge position at 31
December 2008
Year 2008 2009 2010
RAND DOLLAR (000)
Put options purchased Amount ($) 30,000
US$/R R11.56
Put options sold Amount ($) 50,000
US$/R R9.52
Call options sold Amount ($) 50,000
US$/R R11.61
A DOLLAR (000)
Forward contracts Amount ($) 450,000
A$/US$ $0.65
Put options purchased Amount ($) 10,000
A$/US$ $0.69
Put options sold Amount ($) 10,000
A$/US$ $0.76
Call options sold Amount ($) 10,000
A$/US$ $0.64
BRAZILIAN REAL (000)
Forward contracts Amount ($) 62,340
US$/BRL BRL 1.86
Year 2011 2012 2013-2016 Total
RAND DOLLAR (000)
Put options purchased Amount ($) 30,000
US$/R R11.56
Put options sold Amount ($) 50,000
US$/R R9.52
Call options sold Amount ($) 50,000
US$/R R11.61
A DOLLAR (000)
Forward contracts Amount ($) 450,000
A$/US$ $0.65
Put options purchased Amount ($) 10,000
A$/US$ $0.69
Put options sold Amount ($) 10,000
A$/US$ $0.76
Call options sold Amount ($) 10,000
A$/US$ $0.64
BRAZILIAN REAL (000)
Forward contracts Amount ($) 62,340
US$/BRL BRL 1.86
Fair value of derivative analysis by accounting designation as at 31 December
2008
Normal sale Cash flow
exempted hedge
accounted
US Dollar (millions)
Commodity option contracts (534) -
Foreign exchange option contracts - -
Forward sale commodity contracts (748) (146)
Forward foreign exchange contracts - (1)
Interest rate swaps (24) -
Total derivatives (1,306) (147)
(68) (2)
Credit risk adjustment
Total derivatives - before credit risk adjustment (1,374) (149)
Non-hedge
accounted
Total
US Dollar (millions)
Commodity option contracts (1,255) (1,789)
Foreign exchange option contracts 1 1
Forward sale commodity contracts 178 (716)
Forward foreign exchange contracts 16 15
Interest rate swaps 15 (9)
Total derivatives (1,045) (2,498)
(157) (227)
Credit risk adjustment
Total derivatives - before credit risk adjustment (1,202) (2,725)
Rounding of figures may result in computational discrepancies.
Statement of recognised income and expense
Year Year
ended ended
December December
2008 2007
Restated
SA Rand million Unaudited Unaudited
Actuarial loss on pension and post-retirement
benefits (364) (99)
Net loss on cash flow hedges removed from equity
and reported in gold sales 1,782 1,421
Net loss on cash flow hedges (721) (1,173)
Hedge ineffectiveness 64 69
Realised losses on capital hedges (18) -
(Loss) gain on available-for-sale financial assets (83) 8
Deferred taxation on items above (119) 36
Translation 8,634 (169)
Net income recognised directly in equity 9,175 93
Loss for the year (15,782) (4,047)
Total recognised expense for the year (6,607) (3,954)
Attributable to:
Equity shareholders (7,093) (4,169)
Minority interest 486 215
(6,607) (3,954)
US Dollar million
Actuarial loss on pension and post-retirement
benefits (44) (14)
Net loss on cash flow hedges removed from equity
and reported in gold sales 216 202
Net loss on cash flow hedges (87) (168)
Hedge ineffectiveness 8 10
Realised losses on capital hedges (2) -
(Loss) gain on available-for-sale financial assets (10) 1
Deferred taxation on items above (12) 5
Translation 645 6
Net income recognised directly in equity 714 42
Loss for the year (1,155) (636)
Total recognised expense for the year (441) (594)
Attributable to:
Equity shareholders (477) (627)
Minority interest 36 33
(441) (594)
Rounding of figures may result in computational discrepancies.
Group operating results
Quarter ended
Dec Sep Dec
2008 2008 2007
Unaudited
Rand / Metric
OPERATING RESULTS
UNDERGROUND OPERATION
Milled - 000 tonnes / - 000 tons 3,227 3,178 3,236
Yield -g/t / - oz / t 6.72 6.84 6.96
Gold produced - kg / - oz (000) 21,679 21,737 22,505
SURFACE AND DUMP RECLAMATION
Treated - 000 tonnes / - 000 tons 3,092 3,078 2,987
Yield -g/t / - oz / t 0.44 0.40 0.45
Gold produced - kg / - oz (000) 1,362 1,229 1,339
OPEN-PIT OPERATION
Mined - 000 tonnes / - 000 tons 40,332 44,777 47,549
Treated - 000 tonnes / - 000 tons 6,575 6,318 6,455
Stripping ratio - t
(mined total - mined ore)
/ t mined ore 4.65 6.24 4.62
Yield -g/t / - oz / t 2.01 2.15 2.33
Gold in ore - kg / - oz (000) 18,394 4,089 13,711
Gold produced - kg / - oz (000) 13,240 13,573 15,047
HEAP LEACH OPERATION
Mined - 000 tonnes / - 000 tons 13,712 13,475 14,965
Placed 1 - 000 tonnes / - 000 tons 5,861 6,026 5,852
Stripping ratio - t
(mined total - mined ore)
/ t mined ore 1.47 1.38 1.61
Yield 2 -g/t / - oz / t 0.61 0.56 0.70
Gold placed 3 - kg / - oz (000) 3,577 3,376 4,115
Gold produced - kg / - oz (000) 3,148 2,797 3,665
TOTAL
Gold produced - kg / - oz (000) 39,429 39,336 42,556
Gold sold - kg / - oz (000) 39,249 40,902 42,278
Price received
- R / kg / - $ / oz - sold 219,329 160,127 149,312
Price received normalised for
accelerated settlement of non-
hedge derivatives
- R / kg / - $ / oz - sold 219,329 160,127 149,312
Total cash costs
- R / kg / - $ / oz - produced 134,813 121,440 87,744
Total production costs
- R / kg / - $ / oz - produced 172,312 152,945 122,344
PRODUCTIVITY PER EMPLOYEE
Target -g / - oz 342 346 404
Actual -g / - oz 295 321 342
CAPITAL EXPENDITURE - Rm / - $m 2,994 2,623 2,315
Year
ended
Dec Dec
2008 2007
Unaudited
Rand / Metric
OPERATING RESULTS
UNDERGROUND OPERATION
Milled - 000 tonnes / - 000 tons 12,335 13,112
Yield -g/t / - oz / t 6.89 6.99
Gold produced - kg / - oz (000) 85,025 91,684
SURFACE AND DUMP RECLAMATION
Treated - 000 tonnes / - 000 tons 11,870 12,429
Yield -g/t / - oz / t 0.42 0.49
Gold produced - kg / - oz (000) 5,009 6,142
OPEN-PIT OPERATION
Mined - 000 tonnes / - 000 tons 175,999 172,487
Treated - 000 tonnes / - 000 tons 25,388 25,312
Stripping ratio - t
(mined total - mined ore)
/ t mined ore 5.24 4.48
Yield -g/t / - oz / t 2.12 2.34
Gold in ore - kg / - oz (000) 47,160 55,463
Gold produced - kg / - oz (000) 53,930 59,227
HEAP LEACH OPERATION
Mined - 000 tonnes / - 000 tons 54,754 59,720
Placed 1 - 000 tonnes / - 000 tons 23,462 22,341
Stripping ratio - t
(mined total - mined ore)
/ t mined ore 1.43 1.77
Yield 2 -g/t / - oz / t 0.62 0.73
Gold placed 3 - kg / - oz (000) 14,496 16,242
Gold produced - kg / - oz (000) 10,994 13,312
TOTAL
Gold produced - kg / - oz (000) 154,958 170,365
Gold sold - kg / - oz (000) 155,954 170,265
Price received
- R / kg / - $ / oz - sold 130,522 142,107
Price received normalised for
accelerated settlement of non-
hedge derivatives
- R / kg / - $ / oz - sold 185,887 142,107
Total cash costs
- R / kg / - $ / oz - produced 117,462 80,490
Total production costs
- R / kg / - $ / oz - produced 150,149 107,415
PRODUCTIVITY PER EMPLOYEE
Target -g / - oz 333 396
Actual -g / - oz 309 349
CAPITAL EXPENDITURE - Rm / - $m 9,905 7,444
Quarter ended
Dec Sep Dec
2008 2008 2007
Unaudited
Dollar / Imperial
OPERATING RESULTS
UNDERGROUND OPERATION
Milled - 000 tonnes / - 000 tons 3,557 3,503 3,567
Yield -g/t / - oz / t 0.196 0.200 0.203
Gold produced - kg / - oz (000) 697 699 723
SURFACE AND DUMP RECLAMATION
Treated - 000 tonnes / - 000 tons 3,408 3,393 3,293
Yield -g/t / - oz / t 0.013 0.012 0.013
Gold produced - kg / - oz (000) 44 40 43
OPEN-PIT OPERATION
Mined - 000 tonnes / - 000 tons 44,458 49,358 52,414
Treated - 000 tonnes / - 000 tons 7,248 6,964 7,115
Stripping ratio - t
(mined total - mined ore)
/ t mined ore 4.65 6.24 4.62
Yield -g/t / - oz / t 0.059 0.063 0.068
Gold in ore - kg / - oz (000) 591 131 441
Gold produced - kg / - oz (000) 426 436 484
HEAP LEACH OPERATION
Mined - 000 tonnes / - 000 tons 15,115 14,854 16,496
Placed 1 - 000 tonnes / - 000 tons 6,460 6,642 6,450
Stripping ratio - t
(mined total - mined ore)
/ t mined ore 1.47 1.38 1.61
Yield 2 -g/t / - oz / t 0.018 0.016 0.021
Gold placed 3 - kg / - oz (000) 115 109 132
Gold produced - kg / - oz (000) 101 90 118
TOTAL
Gold produced - kg / - oz (000) 1,268 1,265 1,368
Gold sold - kg / - oz (000) 1,262 1,315 1,359
Price received
- R / kg / - $ / oz - sold 687 644 687
Price received normalised for
accelerated settlement of non-
hedge derivatives
- R / kg / - $ / oz - sold 687 644 687
Total cash costs
- R / kg / - $ / oz - produced 422 486 404
Total production costs
- R / kg / - $ / oz - produced 540 612 563
PRODUCTIVITY PER EMPLOYEE
Target -g / - oz 11.00 11.12 12.99
Actual -g / - oz 9.48 10.32 10.99
CAPITAL EXPENDITURE - Rm / - $m 302 338 339
Year
ended
Dec Dec
2008 2007
Unaudited
Dollar / Imperial
OPERATING RESULTS
UNDERGROUND OPERATION
Milled - 000 tonnes / - 000 tons 13,597 14,454
Yield -g/t / - oz / t 0.201 0.204
Gold produced - kg / - oz (000) 2,734 2,948
SURFACE AND DUMP RECLAMATION
Treated - 000 tonnes / - 000 tons 13,085 13,701
Yield -g/t / - oz / t 0.012 0.014
Gold produced - kg / - oz (000) 161 197
OPEN-PIT OPERATION
Mined - 000 tonnes / - 000 tons 194,006 190,134
Treated - 000 tonnes / - 000 tons 27,985 27,901
Stripping ratio - t
(mined total - mined ore)
/ t mined ore 5.24 4.48
Yield -g/t / - oz / t 0.062 0.068
Gold in ore - kg / - oz (000) 1,516 1,783
Gold produced - kg / - oz (000) 1,734 1,904
HEAP LEACH OPERATION
Mined - 000 tonnes / - 000 tons 60,356 65,830
Placed 1 - 000 tonnes / - 000 tons 25,863 24,627
Stripping ratio - t
(mined total - mined ore)
/ t mined ore 1.43 1.77
Yield 2 -g/t / - oz / t 0.018 0.021
Gold placed 3 - kg / - oz (000) 466 522
Gold produced - kg / - oz (000) 353 428
TOTAL
Gold produced - kg / - oz (000) 4,982 5,477
Gold sold - kg / - oz (000) 5,014 5,474
Price received
- R / kg / - $ / oz - sold 485 629
Price received normalised for
accelerated settlement of non-
hedge derivatives
- R / kg / - $ / oz - sold 702 629
Total cash costs
- R / kg / - $ / oz - produced 444 357
Total production costs
- R / kg / - $ / oz - produced 567 476
PRODUCTIVITY PER EMPLOYEE
Target -g / - oz 10.70 12.74
Actual -g / - oz 9.94 11.23
CAPITAL EXPENDITURE - Rm / - $m 1,201 1,059
1 Tonnes (tons) placed on to leach pad.
2 Gold placed / tonnes (tons) placed.
3 Gold placed into leach pad inventory.
Rounding of figures may result in computational discrepancies.
Group income statement
Quarter Quarter
ended ended
December September
2008 2008
SA Rand million Notes Unaudited Unaudited
Revenue 2 8,771 7,205
Gold income 8,517 6,851
Cost of sales 3 (6,928) (6,148)
Gain (loss) on non-hedge derivatives and
other commodity contracts 4 598 148
Gross profit (loss) 2,187 851
Corporate administration and other
expenses (363) (255)
Market development costs (41) (25)
Exploration costs (298) (205)
Other operating income (expenses) 5 61 (73)
Operating special items 6 (15,855) 121
Operating (loss) profit (14,309) 415
Dividend received from other investments - -
Interest received 108 248
Exchange gain (loss) 8 51
Fair value adjustment on option component
of convertible bond 2 -
Finance costs and unwinding of obligations (225) (235)
Share of associates` and equity accounted
joint ventures (loss) profit (381) (98)
(Loss) profit before taxation (14,797) 381
Taxation 7 2,978 (577)
Loss after taxation from continuing
operations (11,819) (196)
Discontinued operations
Profit from discontinued operations 8 4 6
Loss for the period (11,815) (190)
Allocated as follows:
Equity shareholders (11,869) (247)
Minority interest 54 57
(11,815) (190)
Basic loss per ordinary share (cents) 1
Loss from continuing operations (3,336) (73)
Profit from discontinued operations 1 2
Loss (3,335) (71)
Diluted loss per ordinary share (cents) 2
Loss from continuing operations 3 (3,336) (73)
Profit from discontinued operations 3 1 2
Loss 3 (3,335) (71)
Dividends 4
- Rm
- cents per Ordinary share
- cents per E Ordinary share
Quarter Year Year
ended ended ended
December December December
2007 2008 2007
Restated Restated
SA Rand million Unaudited Unaudited Unaudited
Revenue 5,472 30,790 21,876
Gold income 5,249 29,774 21,101
Cost of sales (4,943) (22,558) (17,241)
Gain (loss) on non-hedge derivatives
and other commodity contracts (2,927) (6,277) (5,169)
Gross profit (loss) (2,621) 939 (1,309)
Corporate administration and other
expenses (211) (1,090) (894)
Market development costs (40) (113) (115)
Exploration costs (232) (1,037) (824)
Other operating income (expenses) 22 (29) (134)
Operating special items (233) (15,379) (84)
Operating (loss) profit (3,315) (16,709) (3,360)
Dividend received from other
investments - - 16
Interest received 87 536 302
Exchange gain (loss) 19 33 (6)
Fair value adjustment on option
component of convertible bond 115 185 333
Finance costs and unwinding of
obligations (227) (926) (845)
Share of associates` and equity
accounted joint ventures (loss)
profit 132 (1,177) 240
(Loss) profit before taxation (3,189) (18,058) (3,320)
Taxation (4) 2,078 (734)
Loss after taxation from continuing
operations (3,193) (15,980) (4,054)
Discontinued operations
Profit from discontinued operations 41 198 7
Loss for the period (3,152) (15,782) (4,047)
Allocated as follows:
Equity shareholders (3,199) (16,105) (4,269)
Minority interest 47 323 222
(3,152) (15,782) (4,047)
Basic loss per ordinary share (cents)
1
Loss from continuing operations (1,150) (5,140) (1,519)
Profit from discontinued operations 15 63 3
Loss (1,136) (5,077) (1,516)
Diluted loss per ordinary share
(cents) 2
Loss from continuing operations 3 (1,150) (5,140) (1,519)
Profit from discontinued operations 3 15 63 3
Loss 3 (1,136) (5,077) (1,516)
Dividends 4
- Rm 324 919
- cents per Ordinary share 103 330
- cents per E Ordinary share 52 165
1 Calculated on the basic weighted average number of ordinary shares.
2 The impact of the diluted loss per share is anti-dilutive and therefore
equal to the basic loss per share.
3 Calculated on the diluted weighted average number of ordinary shares.
4 Represents the dividend declared per ordinary share.
Rounding of figures may result in computational discrepancies.
Group income statement
Quarter Quarter Quarter
ended ended ended
December September December
2008 2008 2007
Restated
US Dollar million Notes Unaudited Unaudited Unaudited
Revenue 2 884 930 810
Gold income 858 885 777
Cost of sales 3 (698) (790) (731)
Gain (loss) on non-hedge
derivatives and other
commodity contracts 4 230 92 (441)
Gross profit (loss) 390 186 (395)
Corporate administration
and other expenses (37) (33) (31)
Market development costs (4) (3) (6)
Exploration costs (30) (26) (35)
Other operating income
(expenses) 5 6 (9) 3
Operating special items 6 (1,600) 16 (34)
Operating (loss) profit (1,275) 130 (498)
Dividend received from
other investments - - -
Interest received 11 32 13
Exchange gain (loss) 1 6 3
Fair value adjustment on
option component of
convertible bond - - 17
Finance costs and unwinding
of obligations (23) (30) (34)
Share of associates` and
equity accounted joint
ventures (loss) profit (39) (12) 20
(Loss) profit before
taxation (1,324) 126 (479)
Taxation 7 313 (69) (1)
(Loss) profit after
taxation from continuing
operations (1,011) 57 (481)
Discontinued operations
Profit from discontinued
operations 8 - 1 6
(Loss) profit for the period (1,011) 58 (475)
Allocated as follows:
Equity shareholders (1,016) 51 (482)
Minority interest 5 7 7
(1,011) 58 (475)
Basic (loss) earnings per
ordinary share (cents) 1
(Loss) profit from
continuing operations (285) 15 (173)
Profit from discontinued
operations - - 2
(Loss) profit (285) 15 (171)
Diluted (loss) earnings per
ordinary share (cents) 2
(Loss) profit from
continuing operations 3 (285) 15 (173)
Profit from discontinued
operations 3 - - 2
(Loss) profit 3 (285) 15 (171)
Dividends 4
- $m
- cents per Ordinary share
- cents per E Ordinary share
Year Year
ended ended
December December
2008 2007
Restated
US Dollar million Unaudited Unaudited
Revenue 3,743 3,113
Gold income 3,619 3,002
Cost of sales (2,728) (2,458)
Gain (loss) on non-hedge derivatives and other
commodity contracts (297) (792)
Gross profit (loss) 594 (248)
Corporate administration and other expenses (131) (128)
Market development costs (13) (16)
Exploration costs (126) (117)
Other operating income (expenses) (6) (20)
Operating special items (1,538) (13)
Operating (loss) profit (1,220) (542)
Dividend received from other investments - 2
Interest received 66 43
Exchange gain (loss) 4 (1)
Fair value adjustment on option component of
convertible bond 25 47
Finance costs and unwinding of obligations (114) (120)
Share of associates` and equity accounted joint
ventures (loss) profit (138) 35
(Loss) profit before taxation (1,377) (536)
Taxation 197 (101)
(Loss) profit after taxation from continuing
operations (1,180) (637)
Discontinued operations
Profit from discontinued operations 25 1
(Loss) profit for the period (1,155) (636)
Allocated as follows:
Equity shareholders (1,195) (668)
Minority interest 40 32
(1,155) (636)
Basic (loss) earnings per ordinary share (cents) 1
(Loss) profit from continuing operations (385) (237)
Profit from discontinued operations 8 -
(Loss) profit (377) (237)
Diluted (loss) earnings per ordinary share (cents) 2
(Loss) profit from continuing operations 3 (385) (237)
Profit from discontinued operations 3 8 -
(Loss) profit 3 (377) (237)
Dividends 4
- $m 41 125
- cents per Ordinary share 13 45
- cents per E Ordinary share 7 22
1 Calculated on the basic weighted average number of ordinary shares.
2 The impact of the diluted earnings (loss) per share is anti-dilutive
and therefore equal to the basic earnings (loss) per share.
3 Calculated on the diluted weighted average number of ordinary shares.
4 Represents the dividend declared per ordinary share. Dividends are
translated at actual rates on date of payment.
Rounding of figures may result in computational discrepancies.
Group balance sheet
As at As at As at
December September December
2008 2008 2007
Restated
SA Rand million Notes Unaudited Unaudited Unaudited
ASSETS
Non-current assets
Tangible assets 41,081 55,085 45,095
Intangible assets 1,403 3,287 2,859
Investments in associates
and equity accounted joint
ventures 2,814 2,846 2,183
Other investments 625 663 699
Inventories 2,710 2,389 1,807
Trade and other receivables 585 531 387
Deferred taxation 475 111 430
Other non-current assets 32 88 278
49,725 65,000 53,738
Current assets
Inventories 5,663 5,342 3,753
Trade and other receivables 2,076 2,076 1,384
Derivatives 5,386 3,851 3,516
Current portion of other
non-current assets 2 2 2
Cash restricted for use 415 499 264
Cash and cash equivalents 5,438 4,585 3,246
18,980 16,355 12,165
Non-current assets held for
sale 7,497 10 210
26,477 16,365 12,375
TOTAL ASSETS 76,202 81,365 66,113
EQUITY AND LIABILITIES
Share capital and premium 11 37,336 36,525 22,371
Retained earnings and other
reserves 12 (14,380) (6,579) (6,167)
Shareholders` equity 22,956 29,946 16,204
Minority interests 12 790 655 429
Total equity 23,746 30,601 16,633
Non-current liabilities
Borrowings 13 8,224 6,865 10,416
Environmental
rehabilitation and other
provisions 3,860 3,805 3,176
Provision for pension and
post-retirement benefits 1,293 1,257 1,208
Trade, other payables and
deferred income 99 72 79
Derivatives 14 235 313 1,110
Deferred taxation 5,838 8,170 7,100
19,549 20,483 23,089
Current liabilities
Current portion of
borrowings 13 10,046 8,581 2,173
Trade, other payables and
deferred income 4,946 4,857 4,318
Derivatives 14 16,426 15,998 18,763
Taxation 1,033 846 1,137
32,451 30,282 26,391
Non-current liabilities
held for sale 456 - -
32,907 30,282 26,391
Total liabilities 52,456 50,764 49,480
TOTAL EQUITY AND LIABILITIES 76,202 81,365 66,113
Net asset value - cents per
share 6,643 8,628 5,907
Rounding of figures may result in computational discrepancies.
Group balance sheet
As at As at As at
December September December
2008 2008 2007
Restated
US Dollar million Notes Unaudited Unaudited Unaudited
ASSETS
Non-current assets
Tangible assets 4,345 6,663 6,621
Intangible assets 148 398 420
Investments in associates
and equity accounted joint
ventures 298 344 321
Other investments 66 80 103
Inventories 287 289 265
Trade and other receivables 62 64 57
Deferred taxation 50 13 63
Other non-current assets 3 11 41
5,259 7,863 7,891
Current assets
Inventories 599 646 551
Trade and other receivables 220 251 203
Derivatives 570 466 516
Current portion of other
non-current assets - - -
Cash restricted for use 44 60 39
Cash and cash equivalents 575 555 477
2,008 1,978 1,786
Non-current assets held for
sale 793 1 31
2,801 1,979 1,817
TOTAL ASSETS 8,060 9,842 9,708
EQUITY AND LIABILITIES
Share capital and premium 11 3,949 4,418 3,285
Retained earnings and other
reserves 12 (1,521) (796) (906)
Shareholders` equity 2,428 3,622 2,379
Minority interests 12 83 79 63
Total equity 2,511 3,702 2,442
Non-current liabilities
Borrowings 13 870 830 1,529
Environmental
rehabilitation and other
provisions 408 460 467
Provision for pension and
post-retirement benefits 137 152 177
Trade, other payables and
deferred income 11 9 12
Derivatives 14 25 38 163
Deferred taxation 617 988 1,042
2,068 2,478 3,390
Current liabilities
Current portion of
borrowings 13 1,063 1,038 319
Trade, other payables and
deferred income 524 587 635
Derivatives 14 1,737 1,935 2,755
Taxation 109 102 167
3,433 3,663 3,876
Non-current liabilities
held for sale 48 - -
3,481 3,663 3,876
Total liabilities 5,549 6,140 7,266
TOTAL EQUITY AND LIABILITIES 8,060 9,842 9,708
Net asset value - cents per
share 702 1,044 867
Rounding of figures may result in computational discrepancies.
Group cash flow statement
Quarter Quarter Quarter
ended ended ended
December September December
2008 2008 2007
Restated Restated
SA Rand million Unaudited Unaudited Unaudited
Cash flows from operating activities
Receipts from customers 8,772 6,818 5,376
Payments to suppliers and employees (6,210) (6,193) (3,744)
Cash generated from operations 2,562 625 1,632
Cash (utilised) generated by
discontinued operations (4) 9 10
Cash utilised for hedge book
settlements (10) (7,755) -
Dividend received from equity
accounted investments 257 141 107
Taxation paid (127) (129) (568)
Net cash inflow (outflow) from
operating activities 2,678 (7,108) 1,181
Cash flows from investing activities
Capital expenditure (2,964) (2,615) (2,259)
Acquisition of assets - - 3
Proceeds from disposal of tangible
assets 33 25 24
Proceeds from disposal of assets of
discontinued operations - 1 -
Other investments acquired (197) (228) (207)
Associate loans, acquisitions and
disposals - (44) -
Proceeds from disposal of investments 203 214 69
Dividend received from other
investments - - -
Decrease (increase) in cash
restricted for use 94 24 37
Interest received 98 256 72
Net loans repaid 1 1 -
Net cash outflow from investing
activities (2,733) (2,366) (2,261)
Cash flows from financing activities
Proceeds from issue of share capital 12 13,494 88
Share issue expenses (11) (410) -
Proceeds from borrowings 1,622 2,305 4,205
Repayment of borrowings (477) (4,402) (3,194)
Finance costs paid (266) (242) (34)
Advanced proceeds from rights offer - (6) -
Dividends paid - (254) (17)
Net cash inflow from financing
activities 879 10,486 1,048
Net increase (decrease) in cash and
cash equivalents 824 1,011 (31)
Translation 29 (87) (10)
Cash and cash equivalents at
beginning of period 4,585 3,661 3,287
Net cash and cash equivalents at end
of period 5,438 4,585 3,246
Cash generated from operations
(Loss) profit before taxation (14,797) 381 (3,189)
Adjusted for:
Movement on non-hedge derivatives and
other commodity contracts (1,046) (821) 3,645
Amortisation of tangible assets 1,387 1,111 1,063
Finance costs and unwinding of
obligations 225 235 227
Environmental, rehabilitation and
other expenditure (75) 54 252
Operating special items 15,855 (121) 233
Amortisation of intangible assets 9 4 3
Deferred stripping (140) (124) (84)
Fair value adjustment on option
components of convertible bond (2) - (115)
Interest receivable (108) (248) (87)
Other non-cash movements 747 393 66
Movements in working capital 507 (238) (250)
2,562 625 1,632
Movements in working capital
Increase in inventories (1,162) (310) (429)
Decrease (increase) in trade and
other receivables 135 (241) (141)
Increase (decrease) in trade and
other payables 1,533 312 321
507 (238) (250)
Year Year
ended ended
December December
2008 2007
Restated
SA Rand million Unaudited Unaudited
Cash flows from operating activities
Receipts from customers 30,117 21,595
Payments to suppliers and employees (24,429) (14,676)
Cash generated from operations 5,688 6,919
Cash (utilised) generated by discontinued operations (11) (14)
Cash utilised for hedge book settlements (8,514) -
Dividend received from equity accounted investments 739 444
Taxation paid (1,029) (1,264)
Net cash inflow (outflow) from operating activities (3,127) 6,085
Cash flows from investing activities
Capital expenditure (9,846) (7,138)
Acquisition of assets - (284)
Proceeds from disposal of tangible assets 301 197
Proceeds from disposal of assets of discontinued
operations 79 9
Other investments acquired (769) (190)
Associate loans, acquisitions and disposals 377 1
Proceeds from disposal of investments 729 174
Dividend received from other investments - 16
Decrease (increase) in cash restricted for use (49) (177)
Interest received 538 247
Net loans repaid - 3
Net cash outflow from investing activities (8,640) (7,142)
Cash flows from financing activities
Proceeds from issue of share capital 13,592 247
Share issue expenses (421) (4)
Proceeds from borrowings 7,034 5,918
Repayment of borrowings (5,066) (3,652)
Finance costs paid (788) (502)
Advanced proceeds from rights offer - -
Dividends paid (455) (1,050)
Net cash inflow from financing activities 13,896 957
Net increase (decrease) in cash and cash equivalents 2,129 (100)
Translation 63 49
Cash and cash equivalents at beginning of period 3,246 3,297
Net cash and cash equivalents at end of period 5,438 3,246
Cash generated from operations
(Loss) profit before taxation (18,058) (3,320)
Adjusted for:
Movement on non-hedge derivatives and other
commodity contracts 3,169 7,112
Amortisation of tangible assets 4,620 3,980
Finance costs and unwinding of obligations 926 845
Environmental, rehabilitation and other expenditure 38 266
Operating special items 15,379 84
Amortisation of intangible assets 21 14
Deferred stripping (418) (489)
Fair value adjustment on option components of
convertible bond (185) (333)
Interest receivable (536) (302)
Other non-cash movements 1,953 141
Movements in working capital (1,221) (1,079)
5,688 6,919
Movements in working capital
Increase in inventories (3,588) (1,410)
Decrease (increase) in trade and other receivables (618) (404)
Increase (decrease) in trade and other payables 2,985 (735)
(1,221) (1,079)
Rounding of figures may result in computational discrepancies.
Group cash flow statement
Quarter Quarter Quarter
ended ended ended
December September December
2008 2008 2007
Restated Restated
US Dollar million Unaudited Unaudited Unaudited
Cash flows from operating activities
Receipts from customers 892 884 795
Payments to suppliers and employees (681) (765) (554)
Cash generated from operations 210 119 241
Cash generated (utilised) by
discontinued operations - 1 2
Cash utilised for hedge book
settlements (1) (1,018) -
Dividend received from equity
accounted investments 20 15 16
Taxation paid (7) (16) (82)
Net cash inflow (outflow) from
operating activities 221 (899) 176
Cash flows from investing activities
Capital expenditure (298) (337) (330)
Acquisition of assets - - -
Proceeds from disposal of tangible
assets 3 3 4
Proceeds from disposal of assets of
discontinued operations - - -
Other investments acquired (19) (29) (30)
Associate loans, acquisitions and
disposals (3) (1) -
Proceeds from disposal of investments 20 28 10
Dividend received from other
investments - - -
Decrease (increase) in cash
restricted for use 14 3 5
Interest received 10 33 11
Net loans advanced - - -
Net cash outflow from investing
activities (274) (300) (330)
Cash flows from financing activities
Proceeds from issue of share capital 1 1,710 12
Share issue expenses - (54) -
Proceeds from borrowings 149 298 602
Repayment of borrowings (17) (573) (455)
Finance costs paid (25) (31) (6)
Advanced proceeds from rights offer - (1) -
Dividends paid - (33) (2)
Net cash inflow from financing
activities 108 1,317 150
Net increase (decrease) in cash and
cash equivalents 55 117 (4)
Translation (35) (30) 2
Cash and cash equivalents at
beginning of period 555 467 478
Net cash and cash equivalents at end
of period 575 555 477
Cash generated from operations
(Loss) profit before taxation (1,324) 126 (479)
Adjusted for:
Movement on non-hedge derivatives and
other commodity contracts (276) (178) 547
Amortisation of tangible assets 140 143 157
Finance costs and unwinding of
obligations 23 30 34
Environmental, rehabilitation and
other expenditure (8) 7 37
Operating special items 1,600 (16) 34
Amortisation of intangible assets 1 - -
Deferred stripping (14) (16) (13)
Fair value adjustment on option
components of convertible bond - - (17)
Interest receivable (11) (32) (13)
Other non-cash movements 75 49 (9)
Movements in working capital 5 5 (38)
210 119 241
Movements in working capital
(Increase) decrease in inventories (1) 14 (70)
Decrease (increase) in trade and
other receivables 47 (17) (23)
(Decrease) increase in trade and
other payables (40) 7 55
5 5 (38)
Year Year
ended ended
December December
2008 2007
Restated
US Dollar million Unaudited Unaudited
Cash flows from operating activities
Receipts from customers 3,672 3,071
Payments to suppliers and employees (3,040) (2,088)
Cash generated from operations 632 983
Cash generated (utilised) by discontinued operations (1) (2)
Cash utilised for hedge book settlements (1,113) -
Dividend received from equity accounted investments 78 65
Taxation paid (125) (180)
Net cash inflow (outflow) from operating activities (529) 866
Cash flows from investing activities
Capital expenditure (1,194) (1,015)
Acquisition of assets - (40)
Proceeds from disposal of tangible assets 39 29
Proceeds from disposal of assets of discontinued
operations 10 1
Other investments acquired (93) (27)
Associate loans, acquisitions and disposals 48 -
Proceeds from disposal of investments 88 25
Dividend received from other investments - 2
Decrease (increase) in cash restricted for use (6) (25)
Interest received 67 35
Net loans advanced - -
Net cash outflow from investing activities (1,041) (1,015)
Cash flows from financing activities
Proceeds from issue of share capital 1,722 34
Share issue expenses (54) -
Proceeds from borrowings 853 843
Repayment of borrowings (614) (520)
Finance costs paid (93) (72)
Advanced proceeds from rights offer - -
Dividends paid (58) (144)
Net cash inflow from financing activities 1,756 141
Net increase (decrease) in cash and cash equivalents 186 (8)
Translation (88) 14
Cash and cash equivalents at beginning of period 477 471
Net cash and cash equivalents at end of period 575 477
Cash generated from operations
(Loss) profit before taxation (1,377) (536)
Adjusted for:
Movement on non-hedge derivatives and other
commodity contracts (88) 1,071
Amortisation of tangible assets 560 567
Finance costs and unwinding of obligations 114 120
Environmental, rehabilitation and other expenditure 6 39
Operating special items 1,538 13
Amortisation of intangible assets 2 2
Deferred stripping (51) (72)
Fair value adjustment on option components of
convertible bond (25) (47)
Interest receivable (66) (43)
Other non-cash movements 225 21
Movements in working capital (206) (152)
632 983
Movements in working capital
(Increase) decrease in inventories (151) (224)
Decrease (increase) in trade and other receivables (9) (64)
(Decrease) increase in trade and other payables (46) 136
(206) (152)
Rounding of figures may result in computational discrepancies.
Notes
for the quarter and year ended 31 December 2008
1. Basis of preparation
The financial statements in this quarterly report have been prepared in
accordance with the historic cost convention except for certain financial
instruments which are stated at fair value. Except for the change in accounting
policy described below and detailed in note 20, 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 2007 and
revised International Financial Reporting Standards (IFRS) which are effective
1 January 2008, where applicable.
The group changed its accounting policy regarding accounting for incorporated
joint ventures to provide more relevant financial data as returns from these
investments are limited to dividends which is more representative of the income
flows. Incorporated joint ventures were previously accounted for under the
proportionate consolidation method. Comparative figures have been restated to
conform to the changes in accounting policy.
The financial statements of AngloGold Ashanti Limited have been prepared in
compliance with IAS34, JSE Listings Requirements and in the manner required by
the South African Companies Act, 1973 for the preparation of financial
information of the group for the quarter and year ended 31 December 2008.
2. Revenue
Quarter ended
Dec Sep Dec
2008 2008 2007
Restated
Unaudited Unaudited Unaudited
SA Rand million
Gold income 8,517 6,851 5,249
By-products (note 3) 147 106 136
Dividend received from other
investments - - -
Interest received 108 248 87
8,771 7,205 5,472
Year ended
Dec Dec
2008 2007
Restated
Unaudited Unaudited
SA Rand million
Gold income 29,774 21,101
By-products (note 3) 480 457
Dividend received from other
investments - 16
Interest received 536 302
30,790 21,876
Quarter ended
Dec Sep Dec
2008 2008 2007
Restated
Unaudited Unaudited Unaudited
US Dollar million
Gold income 858 885 777
By-products (note 3) 15 14 20
Dividend received from other
investments - - -
Interest received 11 32 13
884 930 810
Year ended
Dec Dec
2008 2007
Restated
Unaudited Unaudited
US Dollar million
Gold income 3,619 3,002
By-products (note 3) 58 66
Dividend received from other
investments - 2
Interest received 66 43
3,743 3,11
3. Cost of sales
Quarter ended
Dec Sep Dec
2008 2008 2007
Restated
Unaudited Unaudited Unaudited
SA Rand million
Cash operating costs (4,948) (4,540) (3,234)
By-products revenue (note 2) 147 106 136
By-products cash operating costs (65) (57) (228)
(4,866) (4,491) (3,326)
Other cash costs (196) (177) (143)
Total cash costs (5,062) (4,668) (3,469)
Retrenchment costs (16) (14) (88)
Rehabilitation and other non-cash
costs 2 (102) (302)
Production costs (5,076) (4,784) (3,859)
Amortisation of tangible assets (1,387) (1,111) (1,063)
Amortisation of intangible assets (9) (4) (3)
Total production costs (6,472) (5,899) (4,925)
Inventory change (456) (249) (18)
(6,928) (6,148) (4,943)
Year ended
Dec Dec
2008 2007
Restated
Unaudited Unaudited
SA Rand million SA Rand million
Cash operating costs (16,865) (12,379)
By-products revenue (note 2) 480 457
By-products cash operating costs (286) (420)
(16,671) (12,342)
Other cash costs (734) (547)
Total cash costs (17,405) (12,889)
Retrenchment costs (72) (131)
Rehabilitation and other non-cash
costs (218) (422)
Production costs (17,695) (13,442)
Amortisation of tangible assets (4,620) (3,980)
Amortisation of intangible assets (21) (14)
Total production costs (22,336) (17,436)
Inventory change (222) 195
(22,558) (17,241)
Quarter ended
Dec Sep Dec
2008 2008 2007
Restated
Unaudited Unaudited Unaudited
US Dollar million
Cash operating costs (498) (584) (478)
By-products revenue (note 2) 15 14 20
By-products cash operating costs (7) (8) (34)
(490) (578) (492)
Other cash costs (20) (23) (21)
Total cash costs (510) (601) (513)
Retrenchment costs (2) (2) (13)
Rehabilitation and other non-cash
costs - (13) (44)
Production costs (511) (616) (570)
Amortisation of tangible assets (140) (143) (158)
Amortisation of intangible assets (1) - -
Total production costs (652) (759) (728)
Inventory change (47) (32) (3)
(698) (790) (731)
Year ended
Dec Dec
2008 2007
Restated
Unaudited Unaudited
US Dollar million
Cash operating costs (2,045) (1,764)
By-products revenue (note 2) 58 66
By-products cash operating costs (36) (60)
(2,023) (1,758)
Other cash costs (90) (78)
Total cash costs (2,113) (1,836)
Retrenchment costs (9) (19)
Rehabilitation and other non-cash
costs (28) (61)
Production costs (2,150) (1,916)
Amortisation of tangible assets (560) (567)
Amortisation of intangible assets (2) (2)
Total production costs (2,712) (2,485)
Inventory change (16) 27
(2,728) (2,458)
Rounding of figures may result in computational discrepancies.
4. Gain (loss) on non-hedge derivatives and other commodity contracts
Quarter ended
Dec Sep Dec
2008 2008 2007
Restated
Unaudited Unaudited Unaudited
SA Rand million
(Loss) gain on realised non-hedge
derivatives (348) (519) 740
Realised loss on other commodity
contracts - - -
Loss on accelerated settlement of non-
hedge derivatives - - -
Gain (loss) on unrealised non-hedge
derivatives 898 666 (3,829)
Unrealised gain (loss) on other
commodity physical borrowings 48 1 (4)
Provision reversed (accrued) for gain
(loss) on future deliveries of other
commodities - - 167
598 148 (2,927)
Year ended
Dec Dec
2008 2007
Restated
Unaudited Unaudited
SA Rand million
(Loss) gain on realised non-hedge
derivatives (2,145) 2,033
Realised loss on other commodity
contracts (253) -
Loss on accelerated settlement of non-
hedge derivatives (7,764) -
Gain (loss) on unrealised non-hedge
derivatives 3,774 (7,305)
Unrealised gain (loss) on other
commodity physical borrowings 74 23
Provision reversed (accrued) for gain
(loss) on future deliveries of other
commodities 37 80
(6,277) (5,169)
Quarter ended
Dec Sep Dec
2008 2008 2007
Restated
Unaudited Unaudited Unaudited
US Dollar million
(Loss) gain on realised non-hedge
derivatives (35) (66) 110
Realised loss on other commodity
contracts - - -
Loss on accelerated settlement of non-
hedge derivatives - - -
Gain (loss) on unrealised non-hedge
derivatives 260 158 (575)
Unrealised gain (loss) on other
commodity physical borrowings 5 - (1)
Provision reversed (accrued) for gain
(loss) on future deliveries of other
commodities - - 25
230 92 (441)
Year ended
Dec Dec
2008 2007
Restated
Unaudited Unaudited
US Dollar million
(Loss) gain on realised non-hedge
derivatives (264) 291
Realised loss on other commodity
contracts (32) -
Loss on accelerated settlement of non-
hedge derivatives (979) -
Gain (loss) on unrealised non-hedge
derivatives 965 (1,099)
Unrealised gain (loss) on other
commodity physical borrowings 8 3
Provision reversed (accrued) for gain
(loss) on future deliveries of other
commodities 5 13
(297) (792)
5. Other operating income (expenses)
Quarter ended
Dec Sep Dec
2008 2008 2007
Restated
Unaudited Unaudited Unaudited
SA Rand million
Pension and medical defined benefit
provisions 80 (24) 52
Claims filed by former employees in
respect of loss of employment,
work-related accident injuries and
diseases, governmental fiscal
claims and costs of old tailings
operations (20) (49) (30)
Miscellaneous 1 - -
61 (73) 22
Year ended
Dec Dec
2008 2007
Restated
Unaudited Unaudited
SA Rand million
Pension and medical defined benefit
provisions 8 (23)
Claims filed by former employees in
respect of loss of employment,
work-related accident injuries and
diseases, governmental fiscal
claims and costs of old tailings
operations (37) (97)
Miscellaneous - (14)
(29) (134)
US Dollar million
Quarter ended
Dec Sep Dec
2008 2008 2007
Restated
Unaudited Unaudited Unaudited
US Dollar million
Pension and medical defined benefit
provisions 8 (3) 7
Claims filed by former employees in
respect of loss of employment,
work-related accident injuries and
diseases, governmental fiscal
claims and costs of old tailings
operations (2) (6) (4)
Miscellaneous - - -
6 (9) 3
Year ended
Dec Dec
2008 2007
Restated
Unaudited Unaudited
US Dollar million
Pension and medical defined benefit
provisions (2) (3)
Claims filed by former employees in
respect of loss of employment,
work-related accident injuries and
diseases, governmental fiscal
claims and costs of old tailings
operations (4) (15)
Miscellaneous - (2)
(6) (20)
6. Operating special items
Quarter ended
Dec Sep Dec
2008 2008 2007
Restated
Unaudited Unaudited Unaudited
SA Rand million
Reimbursement (under provision) of
indirect tax expenses 148 1 (102)
Siguiri royalty payment calculation
dispute with the Guinean
Administration (26) - (27)
ESOP and BEE costs resulting from
rights offer - - -
Contractor termination costs at
Iduapriem (10) - -
Impairment net of reversals of
tangible
assets (note 9) (14,786) (3) (5)
Impairment of goodwill (note 9) (1,080) - -
Recovery of exploration costs - 34 (20)
(Loss) profit on disposal and
abandonment of land, mineral
rights, tangible assets and
(55) 82 (55)
exploration properties (note 9)
Impairment of investments (note 9) (42) - -
(Loss) profit on disposal of
investment
in Nufcor International Limited
(note 9) (4) (12) -
Nufcor Uranium trust contributions by
other members (note 9) - 19 -
Buildings located at Siguiri destroyed
by fire (note 9) - - (23)
(15,855) 121 (233)
Year ended
Dec Dec
2008 2007
Restated
Unaudited Unaudited
SA Rand million
Reimbursement (under provision) of
indirect tax expenses 198 (136)
Siguiri royalty payment calculation
dispute with the Guinean
Administration (26) (27)
ESOP and BEE costs resulting from
rights offer (76) -
Contractor termination costs at
Iduapriem (10) -
Impairment net of reversals of tangible
assets (note 9) (14,792) (6)
Impairment of goodwill (note 9) (1,080) -
Recovery of exploration costs 35 29
(Loss) profit on disposal and
abandonment of land, mineral
rights, tangible assets and
381 79
exploration properties (note 9)
Impairment of investments (note 9) (42) -
(Loss) profit on disposal of investment
in Nufcor International Limited
(note 9) 14 -
Nufcor Uranium trust contributions by
other members (note 9) 19 -
Buildings located at Siguiri destroyed
by fire (note 9) - (23)
(15,379) (84)
Quarter ended
Dec Sep Dec
2008 2008 2007
Restated
Unaudited Unaudited Unaudited
US Dollar million
Reimbursement (under provision) of
indirect tax expenses 15 - (14)
Siguiri royalty payment calculation
dispute with the Guinean
Administration (3) - (4)
ESOP and BEE costs resulting from
rights offer - - -
Contractor termination costs at
Iduapriem (1) - -
Impairment net of reversals of
tangible
assets (note 9) (1,492) - (1)
Impairment of goodwill (note 9) (109) - -
Recovery of exploration costs - 4 (3)
(Loss) profit on disposal and
abandonment of land, mineral
rights, tangible assets and
(4) 11 (9)
exploration properties (note 9)
Impairment of investments (note 9) (6) - -
(Loss) profit on disposal of
investment
in Nufcor International Limited
(note 9) - (2) -
Nufcor Uranium trust contributions by
other members (note 9) - 3 -
Buildings located at Siguiri destroyed
by fire (note 9) - - (3)
(1,600) 16 (34)
Year ended
Dec Dec
2008 2007
Restated
Unaudited Unaudited
US Dollar million
Reimbursement (under provision) of
indirect tax expenses 22 (19)
Siguiri royalty payment calculation
dispute with the Guinean
Administration (3) (4)
ESOP and BEE costs resulting from
rights offer (10) -
Contractor termination costs at
Iduapriem (1) -
Impairment net of reversals of tangible
assets (note 9) (1,493) (1)
Impairment of goodwill (note 9) (109) -
Recovery of exploration costs 5 4
(Loss) profit on disposal and
abandonment of land, mineral
rights, tangible assets and
52 10
exploration properties (note 9)
Impairment of investments (note 9) (6) -
(Loss) profit on disposal of investment
in Nufcor International Limited
(note 9) 2 -
Nufcor Uranium trust contributions by
other members (note 9) 3 -
Buildings located at Siguiri destroyed
by fire (note 9) - (3)
(1,538) (13)
Rounding of figures may result in computational discrepancies.
7. Taxation
Quarter ended
Dec Sep Dec
2008 2008 2007
Restated
Unaudited Unaudited Unaudited
SA Rand million
Current tax
Normal taxation (44) (103) (293)
Disposal of tangible assets (note 9) (3) (2) (9)
Over (under) provision prior year 18 (4) -
(29) (109) (302)
Deferred taxation
Temporary differences (610) (446) (71)
Unrealised non-hedge derivatives and
other commodity contracts (254) (9) 337
Disposal and impairment of tangible
3,933 (13) (2)
assets (note 9)
Change in estimated deferred tax rate (62) - 34
Change in statutory tax rate 1 - -
3,008 (468) 298
Total taxation 2,978 (577) (4)
Year ended
Dec Dec
2008 2007
Restated
Unaudited Unaudited
SA Rand million
Current tax
Normal taxation (524) (1,269)
Disposal of tangible assets (note 9) (10) (40)
Over (under) provision prior year (1) (22)
(535) (1,331)
Deferred taxation
Temporary differences (210) (45)
Unrealised non-hedge derivatives and
other commodity contracts (1,219) 681
Disposal and impairment of tangible
3,915 18
assets (note 9)
Change in estimated deferred tax rate (62) (57)
Change in statutory tax rate 190 -
2,614 597
Total taxation 2,078 (734)
Quarter ended
Dec Sep
2008 2008
Unaudited Unaudited
US Dollar million
Current tax
Normal taxation (4) (15)
Disposal of tangible assets (note 9) - -
Over (under) provision prior year 1 -
(3) (15)
Deferred taxation
Temporary differences (61) (57)
Unrealised non-hedge derivatives and
other commodity contracts (14) 4
Disposal and impairment of tangible
397 (2)
assets (note 9)
Change in estimated deferred tax rate (6) -
Change in statutory tax rate - -
316 (55)
Total taxation 313 (69)
Year ended
Dec Dec Dec
2007 2008 2007
Restated Restated
Unaudited Unaudited Unaudited
US Dollar million
Current tax
Normal taxation (44) (71) (181)
Disposal of tangible assets (note 9) (1) (1) (6)
Over (under) provision prior year - - (2)
(45) (72) (189)
Deferred taxation
Temporary differences (11) (13) (7)
Unrealised non-hedge derivatives and
other commodity contracts 50 (132) 100
Disposal and impairment of tangible
- 395 3
assets (note 9)
Change in estimated deferred tax rate 5 (6) (8)
Change in statutory tax rate - 25 -
44 269 88
Total taxation (1) 197 (101)
8. Discontinued Operations
The Ergo surface dump reclamation, which forms part of the South Africa
operations, has been discontinued as the operation has reached the end of its
useful life. The results of Ergo are presented below:
Quarter ended
Dec Sep Dec
2008 2008 2007
Restated
Unaudited Unaudited Unaudited
SA Rand million
Gold income - - -
Cost of sales 4 (4) 31
Gross profit (loss) 4 (4) 31
Other (expenses) income (4) 8 10
Profit (loss) before taxation - 4 41
Normal taxation 4 1 -
Deferred tax - - (1)
Net profit (loss) after tax 4 5 40
Profit on disposal of assets (note 9) - 1 -
Deferred tax on disposal of assets
(note 9) - - -
Profit from discontinued operations 4 6 41
Year ended
Dec Dec
2008 2007
Restated
Unaudited Unaudited
SA Rand million
Gold income - 5
Cost of sales (17) 15
Gross profit (loss) (17) 20
Other (expenses) income 9 10
Profit (loss) before taxation (8) 30
Normal taxation (17) (2)
Deferred tax (1) (21)
Net profit (loss) after tax (26) 7
Profit on disposal of assets (note 9) 218 -
Deferred tax on disposal of assets
(note 9) 6 -
Profit from discontinued operations 198 7
Quarter ended
Dec Sep Dec
2008 2008 2007
Restated
Unaudited Unaudited Unaudited
US Dollar million
Gold income - - -
Cost of sales - (1) 5
Gross profit (loss) - (1) 5
Other (expenses) income - 1 2
Profit (loss) before taxation - 1 6
Normal taxation - - -
Deferred tax - - -
Net profit (loss) after tax - 1 6
Profit on disposal of assets (note 9) - - -
Deferred tax on disposal of assets
(note 9) - - -
Profit from discontinued operations - 1 6
Year ended
Dec Dec
2008 2007
Restated
Unaudited Unaudited
US Dollar million
Gold income - 1
Cost of sales (2) 2
Gross profit (loss) (2) 3
Other (expenses) income 1 2
Profit (loss) before taxation (1) 5
Normal taxation (2) -
Deferred tax - (4)
Net profit (loss) after tax (3) 1
Profit on disposal of assets (note 9) 27 -
Deferred tax on disposal of assets
(note 9) 1 -
Profit from discontinued operations 25 1
The Ergo reclamation surface operation, which formed part of the South African
operations and was included under South Africa for segmental reporting, reached
the end of its useful life on 1 February 2005 and mining operations ceased on
31 March 2005. The site restoration activities continued after the mining
operation was discontinued.
On 8 June 2007, AngloGold Ashanti sold the remaining assets of Ergo, the
surface reclamation operation east of Johannesburg, to a consortium of Mintails
South Africa (Pty) Limited / DRD South African operations (Pty) Limited. The
Competition Commissioner approved the transaction on 5 May 2008 without
conditions. One of the main resolutive conditions which is still outstanding,
is the approval by the Minister of the cession of the mining rights from
AngloGold Ashanti to ERGO Mining (Pty) Limited currently owned by Mintails
South Africa (Pty) Limited and DRD South African Operations (Pty) Limited.
The environmental rehabilitation liability remains with AngloGold Ashanti until
all the resolutive sale conditions have been met.
Rounding of figures may result in computational discrepancies.
9. Headline earnings (loss)
Quarter ended
Dec Sep Dec
2008 2008 2007
Restated
Unaudited Unaudited Unaudited
SA Rand million
The (loss) profit attributable to
equity shareholders has been adjusted by
the following to arrive at headline
earnings (loss):
(Loss) profit attributable to equity
shareholders (11,869) (247) (3,199)
Impairment net of reversals of
tangible
assets (note 6) 14,786 3 5
Impairment of goodwill (note 6) 1,080 - -
Impairment of investments (note 6) 42 - -
Profit on disposal and abandonment of
assets (note 6) 55 (101) 78
Loss (profit) on disposal of
investment in
associate (note 6) 4 12 -
Profit on disposal of discontinued
assets
(note 8) - (1) -
Impairment of investment in associate 347 21 10
Profit on disposal of assets in
associate - - -
Taxation on items above - current
portion
(note 7) 3 2 9
Taxation on items above - deferred
portion
(note 7) (3,933) 13 2
Discontinued operations taxation on
items
above (note 8) - - -
Headline earnings (loss) 516 (298) (3,095)
Cents per share (1)
Headline earnings (loss) 145 (86) (1,099)
Year ended
Dec Dec
2008 2007
Restated
Unaudited Unaudited
SA Rand million
The (loss) profit attributable to equity
shareholders has been adjusted by
the following to arrive at headline
earnings (loss):
(Loss) profit attributable to equity
shareholders (16,105) (4,269)
Impairment net of reversals of tangible
assets (note 6) 14,792 6
Impairment of goodwill (note 6) 1,080 -
Impairment of investments (note 6) 42 -
Profit on disposal and abandonment of
assets (note 6) (400) (56)
Loss (profit) on disposal of investment in
associate (note 6) (14) -
Profit on disposal of discontinued assets
(note 8) (218) -
Impairment of investment in associate 389 161
Profit on disposal of assets in associate (30) -
Taxation on items above - current portion
(note 7) 10 40
Taxation on items above - deferred portion
(note 7) (3,915) (18)
Discontinued operations taxation on items
above (note 8) (6) -
Headline earnings (loss) (4,375) (4,136)
Cents per share (1)
Headline earnings (loss) (1,379) (1,470)
Quarter ended
Dec Sep Dec
2008 2008 2007
Restated
Unaudited Unaudited Unaudited
The (loss) profit attributable to US Dollar million
equity shareholders has been adjusted by
the following to arrive at headline
earnings (loss):
(Loss) profit attributable to equity
shareholders (1,016) 51 (482)
Impairment net of reversals of
tangible assets (note 6) 1,492 - 1
Impairment of goodwill (note 6) 109 - -
Impairment of investments (note 6) 6 - -
Profit on disposal and abandonment of
assets (note 6) 4 (14) 12
Loss (profit) on disposal of
investment in
associate (note 6) - 2 -
Profit on disposal of discontinued
assets (note 8) - - -
Impairment of investment in associate 35 3 1
Profit on disposal of assets in
associate - - -
Taxation on items above - current
portion (note 7) - - 1
Taxation on items above - deferred
portion (note 7) (397) 2 -
Discontinued operations taxation on
items above (note 8) - - -
Headline earnings (loss) 234 44 (466)
Cents per share (1)
Headline earnings (loss) 66 13 (165)
Year ended
Dec Dec
2008 2007
Restated
Unaudited Unaudited
US Dollar million
The (loss) profit attributable to equity
shareholders has been adjusted by
the following to arrive at headline
earnings (loss):
(Loss) profit attributable to equity shareholders (1,195) (668)
Impairment net of reversals of tangible
assets (note 6) 1,493 1
Impairment of goodwill (note 6) 109 -
Impairment of investments (note 6) 6 -
Profit on disposal and abandonment of assets (note 6) (55) (7)
Loss (profit) on disposal of investment in
associate (note 6) (2) -
Profit on disposal of discontinued assets (note 8) (27) -
Impairment of investment in associate 39 23
Profit on disposal of assets in associate (3) -
Taxation on items above - current portion (note 7) 1 6
Taxation on items above - deferred portion (note 7) (395) (3)
Discontinued operations taxation on items
above (note 8) (1) -
Headline earnings (loss) (30) (648)
Cents per share (1)
Headline earnings (loss) (9) (230)
(1) Calculated on the basic weighted average number of ordinary shares.
10. Shares
Quarter ended
Dec Sep Dec
2008 2008 2007
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 353,483,410 350,677,750 277,457,471
E ordinary shares in issue 3,966,941 4,002,887 4,140,230
Total ordinary shares: 357,450,351 354,680,637 281,597,701
A redeemable preference shares 2,000,000 2,000,000 2,000,000
B redeemable preference shares 778,896 778,896 778,896
In calculating the diluted
number of ordinary shares
outstanding for the period, the
following were
taken into consideration:
Ordinary shares 351,517,689 342,692,446 277,119,778
E ordinary shares 3,980,034 4,018,901 4,080,713
Fully vested options 440,430 405,584 457,601
Weighted average number of
shares 355,938,153 347,116,931 281,658,092
Dilutive potential of share
options - 786,816 -
Diluted number of ordinary
shares (1) 355,938,153 347,903,747 281,658,092
Year ended
Dec Dec
2008 2007
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 353,483,410 277,457,471
E ordinary shares in issue 3,966,941 4,140,230
Total ordinary shares: 357,450,351 281,597,701
A redeemable preference shares 2,000,000 2,000,000
B redeemable preference shares 778,896 778,896
In calculating the diluted number of ordinary
shares
outstanding for the period, the following were
taken into consideration:
Ordinary shares 312,610,124 276,805,309
E ordinary shares 4,046,364 4,117,815
Fully vested options 547,460 531,983
Weighted average number of shares 317,203,948 281,455,107
Dilutive potential of share options - -
Diluted number of ordinary shares (1) 317,203,948 281,455,107
(1) The basic and diluted number of ordinary shares is the same for the
December 2008 quarter, December 2007 quarter, year ended December 2008 and year
ended December 2007 as the effects of shares for performance related options
are anti-dilutive.
Rounding of figures may result in computational discrepancies.
11. Share capital and premium
As at
Dec Sep Dec
2008 2008 2007
Restated
Unaudited Unaudited Unaudited
SA Rand million
Balance at beginning of period 23,322 23,322 23,045
Ordinary shares issued 14,946 14,140 283
E ordinary shares cancelled (22) (17) (6)
Translation - - -
Sub-total 38,246 37,445 23,322
Redeemable preference shares
held within the group (312) (312) (312)
Ordinary shares held within the
group (273) (278) (292)
E ordinary shares held within
group (325) (330) (347)
Balance at end of period 37,336 36,525 22,371
As at
Dec Sep Dec
2008 2008 2007
Restated (1) Restated
Unaudited Unaudited Unaudited
US Dollar million
Balance at beginning of period 3,425 3,425 3,292
Ordinary shares issued 1,875 1,794 40
E ordinary shares cancelled (2) (2) (1)
Translation (1,253) (687) 94
Sub-total 4,045 4,530 3,425
Redeemable preference shares
held within the group (33) (38) (46)
Ordinary shares held within
the group (29) (34) (43)
E ordinary shares held within
group (34) (40) (51)
Balance at end of period 3,949 4,418 3,285
(1) The September 2008 quarter has been restated to reflect the shares issued
for Golden Cycle Corporation and the rights issue at the rate prevailing on the
transaction date.
12. Retained earnings and other reserves
Foreign
Non- currency
Retained distributable translation
SA Rand million earnings reserves reserve
Balance at December 2006 (214) 138 436
Actuarial loss recognised
Net loss on cash flow hedges
removed from
equity and reported in gold sales
Net loss on cash flow hedges
Hedge ineffectiveness
Gain on available-for-sale
financial assets
Share-based payment for share
awards
Deferred taxation on items above
(Loss) profit for the year (4,269)
Dividends (919)
Acquisition of minority interest
(1) (81)
Transfers to foreign currency
translation reserve (41) 41
Translation (139)
Balance at December 2007 (5,524) 138 338
Actuarial losses recognised
Net loss on cash flow hedges
removed from
equity and reported in gold sales
Net loss on cash flow hedges
Hedge ineffectiveness
Realised losses on capital hedges
Loss on available-for-sale
financial assets
Release on disposal of
available-for-sale
financial assets
Share-based payment for share
awards
Deferred taxation on items above
(Loss) profit for the year (16,105)
Dividends (324)
Acquisition of minority interest
(1) (914)
Transfers to foreign currency
translation reserve (12) 12
Translation 8,713
Balance at December 2008 (22,879) 138 9,063
Other
Actuarial compre-
(losses) hensive
SA Rand million gains income
Balance at December 2006 (45) (1,503)
Actuarial loss recognised (99)
Net loss on cash flow hedges removed from
equity and reported in gold sales 1,407
Net loss on cash flow hedges (1,161)
Hedge ineffectiveness 69
Gain on available-for-sale financial assets 8
Share-based payment for share awards 190
Deferred taxation on items above 36 -
(Loss) profit for the year
Dividends
Acquisition of minority interest (1)
Transfers to foreign currency translation reserve
Translation - (21)
Balance at December 2007 (108) (1,011)
Actuarial losses recognised (364)
Net loss on cash flow hedges removed from
equity and reported in gold sales 1,758
Net loss on cash flow hedges (719)
Hedge ineffectiveness 64
Realised losses on capital hedges (18)
Loss on available-for-sale financial assets (74)
Release on disposal of available-for-sale
financial assets (9)
Share-based payment for share awards 118
Deferred taxation on items above 124 (243)
(Loss) profit for the year
Dividends
Acquisition of minority interest (1)
Transfers to foreign currency translation reserve
Translation 1 (221)
Balance at December 2008 (347) (355)
Retained
earnings
and other Minority
SA Rand million reserves interests Total
Balance at December 2006 (1,188) 436 (752)
Actuarial loss recognised (99) (99)
Net loss on cash flow hedges removed
from
equity and reported in gold sales 1,407 14 1,421
Net loss on cash flow hedges (1,161) (12) (1,173)
Hedge ineffectiveness 69 69
Gain on available-for-sale financial
assets 8 8
Share-based payment for share awards 190 190
Deferred taxation on items above 36 36
(Loss) profit for the year (4,269) 222 (4,047)
Dividends (919) (131) (1,050)
Acquisition of minority interest (1) (81) (91) (172)
Transfers to foreign currency
translation reserve - -
Translation (160) (9) (169)
Balance at December 2007 (6,167) 429 (5,738)
Actuarial losses recognised (364) (364)
Net loss on cash flow hedges removed
from
equity and reported in gold sales 1,758 24 1,782
Net loss on cash flow hedges (719) (2) (721)
Hedge ineffectiveness 64 64
Realised losses on capital hedges (18) (18)
Loss on available-for-sale financial
assets (74) (74)
Release on disposal of
available-for-sale
financial assets (9) (9)
Share-based payment for share awards 118 118
Deferred taxation on items above (119) (119)
(Loss) profit for the year (16,105) 323 (15,783)
Dividends (324) (131) (455)
Acquisition of minority interest (1) (914) 6 (908)
Transfers to foreign currency
translation reserve - -
Translation 8,493 142 8,634
Balance at December 2008 (14,380) 790 (13,590)
Rounding of figures may result in computational discrepancies.
12. Retained earnings and other reserves
Foreign
Non- currency
Retained distributable translation
US Dollar million earnings reserves reserve
Balance at December 2006 (209) 20 241
Actuarial loss recognised
Net loss on cash flow hedges
removed from equity and reported
in gold sales
Net loss on cash flow hedges
Hedge ineffectiveness
Gain on available-for-sale
financial assets
Share-based payment for share
awards
Deferred taxation on items above
(Loss) profit for the year (668)
Dividends (125)
Acquisition of minority
interest (1) (12)
Transfers to foreign currency
translation reserve (6) 6
Translation - 11
Balance at December 2007 (1,020) 20 258
Actuarial losses recognised
Net loss on cash flow hedges
removed from
equity and reported in gold sales
Net loss on cash flow hedges
Hedge ineffectiveness
Realised losses on capital hedges
Loss on available-for-sale
financial assets
Release on disposal of
available-for-sale
financial assets
Share-based payment for share awards
Deferred taxation on items above
(Loss) profit for the year (1,195)
Dividends (41)
Acquisition of minority
interest (1) (111)
Transfers to foreign currency
translation reserve (1) 1
Translation (5) 648
Balance at December 2008 (2,368) 15 907
Other
Actuarial compre-
(losses) hensive
US Dollar million gains income
Balance at December 2006 (6) (215)
Actuarial loss recognised (14)
Net loss on cash flow hedges removed from
equity and reported in gold sales 200
Net loss on cash flow hedges (166)
Hedge ineffectiveness 10
Gain on available-for-sale financial assets 1
Share-based payment for share awards 27
Deferred taxation on items above 5 -
(Loss) profit for the year
Dividends
Acquisition of minority interest (1)
Transfers to foreign currency translation reserve
Translation (1) (5)
Balance at December 2007 (16) (148)
Actuarial losses recognised (44)
Net loss on cash flow hedges removed from
equity and reported in gold sales 213
Net loss on cash flow hedges (87)
Hedge ineffectiveness 8
Realised losses on capital hedges (2)
Loss on available-for-sale financial assets (9)
Release on disposal of available-for-sale
financial assets (1)
Share-based payment for share awards 14
Deferred taxation on items above 15 (27)
(Loss) profit for the year
Dividends
Acquisition of minority interest (1)
Transfers to foreign currency translation reserve
Translation 8 1
Balance at December 2008 (37) (38)
Retained
earnings
and other Minority
US Dollar million reserves interests Total
Balance at December 2006 (169) 62 (107)
Actuarial loss recognised (14) (14)
Net loss on cash flow hedges removed
from equity and reported in gold sales 200 2 202
Net loss on cash flow hedges (166) (2) (168)
Hedge ineffectiveness 10 10
Gain on available-for-sale financial assets 1 1
Share-based payment for share awards 27 27
Deferred taxation on items above 5 5
(Loss) profit for the year (668) 32 (636)
Dividends (125) (19) (144)
Acquisition of minority interest (1) (12) (13) (25)
Transfers to foreign currency
translation reserve - -
Translation 5 1 6
Balance at December 2007 (906) 63 (843)
Actuarial losses recognised (44) (44)
Net loss on cash flow hedges removed
from equity and reported in gold sales 213 3 216
Net loss on cash flow hedges (87) - (87)
Hedge ineffectiveness 8 8
Realised losses on capital hedges (2) (2)
Loss on available-for-sale financial assets (9) (9)
Release on disposal of
available-for-sale
financial assets (1) (1)
Share-based payment for share awards 14 14
Deferred taxation on items above (12) (12)
(Loss) profit for the year (1,195) 40 (1,155)
Dividends (41) (17) (58)
Acquisition of minority interest (1) (111) 1 (110)
Transfers to foreign currency
translation reserve - -
Translation 652 (7) 645
Balance at December 2008 (1,521) 83 (1,438)
(1) With effect from 1 July 2008, AngloGold Ashanti acquired the remaining 33%
shareholding in Cripple Creek and Victor Gold Mining Company from Golden Cycle
Gold Corporation. Effective 1 September 2008, AngloGold Ashanti acquired a 70%
interest in the Gansu Joint Venture and on 1 September 2007, AngloGold Ashanti
acquired the remaining effective 15% minorities of Iduapriem.
13. Borrowings
On 20 November, 2008, AngloGold Ashanti Holdings plc, a wholly-owned subsidiary
of AngloGold Ashanti Limited, entered into a $1 billion syndicated term loan
facility agreement (the "2008 Term Facility"). The 2008 Term Facility is
available to be drawn during February 2009 to redeem the $1 billion convertible
bond due 27 February 2009 issued by AngloGold Ashanti Holdings plc upon its
maturity, in full and for general corporate purposes.
The 2008 Term Facility is for an initial one year period from the date of first
drawdown and is extendible, if required, at the option of AngloGold Ashanti
Holdings plc until 30 November 2010. The amounts drawn under the 2008 Term
Facility will bear an interest margin over the lenders` cost of funds (subject
to a cap of 1.75 times applicable LIBOR) of 4.25% until six months after the
date of first drawdown and 5.25% thereafter. Interest is payable quarterly.
AngloGold Ashanti Limited, AngloGold Ashanti USA Incorporated and AngloGold
Ashanti Australia Limited have each guaranteed all payments and other
obligations of AngloGold Ashanti Holdings plc under the 2008 Term Facility.
AngloGold Ashanti`s interest expense will increase substantially as a result of
the higher interest rates and fees associated with the 2008 Term Facility.
These fees will be amortized over the expected term of the 2008 Term Facility.
Rounding of figures may result in computational discrepancies.
Based on an assumed cost of funds of 100 basis points and assuming that the
Term Facility is fully drawn, the effective borrowing cost (including fees and
applicable margin) on the Term Facility is estimated at approximately 10% per
annum. The actual interest expense in 2009, will depend upon the amount
actually drawn under the 2008 Term Facility, the lenders` actual costs of funds
and prevailing LIBOR rates and will be partially mitigated by the application
of the proceeds from the Boddington transaction that was announced in January
2009.
Amounts outstanding under the 2008 Term Facility may be prepaid at any time
prior to the maturity date. AngloGold Ashanti intends to refinance the 2008
Term Facility through one or more of the following: the proceeds of asset sales
(which may include the sale of significant assets), long-term debt financing
and/or the issuance of an equity linked instrument. The nature and timing of
the refinancing of the 2008 Term Facility will depend upon market conditions.
14. Derivatives
The reduction of non-hedge derivatives (fair valued on the balance sheet)
during 2008 is as a result of the accelerated hedge close outs implemented
during the year and the implementation of FAS157.
15. Exchange rates
Dec Sep Dec
2008 2008 2007
Unaudited Unaudited Unaudited
ZAR/USD average for the year to date 8.25 7.69 7.03
ZAR/USD average for the quarter 9.92 7.77 6.76
ZAR/USD closing 9.46 8.27 6.81
ZAR/AUD average for the year to date 6.93 7.02 5.89
ZAR/AUD average for the quarter 6.67 6.86 6.00
ZAR/AUD closing 6.57 6.66 5.98
BRL/USD average for the year to date 1.84 1.69 1.95
BRL/USD average for the quarter 2.28 1.67 1.78
BRL/USD closing 2.34 1.93 1.78
ARS/USD average for the year to date 3.16 3.11 3.12
ARS/USD average for the quarter 3.33 3.04 3.15
ARS/USD closing 3.45 3.12 3.15
16. Capital commitments
Dec Sep Dec
2008 2008 2007
Unaudited Unaudited Audited
SA Rand million
Orders placed and outstanding on
capital contracts at
the prevailing
rate of exchange (1) 1,414 2,292 2,968
Dec Sep Dec
2008 2008 2007
Unaudited Unaudited Audited
US Dollar million
Orders placed and outstanding
on capital contracts at
the prevailing
rate of exchange (1) 162 277 436
(1) Includes capital commitments relating to equity accounted joint ventures.
Liquidity and capital resources:
To service the above capital commitments and other operational requirements,
the group is dependent on existing cash resources , cash generated from
operations and borrowing facilities.
Cash generated from operations is subject to operational, market and other
risks. Distributions from operations may be subject to foreign investment 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.
Rounding of figures may result in computational discrepancies.
17. Contingent liabilities
AngloGold Ashanti`s material contingent liabilities at 31 December 2008 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.
Deep groundwater pollution - South Africa - AngloGold Ashanti has identified a
flooding and future pollution risk posed by deep groundwater, due to the
interconnected nature of operations in the West Wits and Vaal River operations.
AGA is involved in Task Teams and other structures to find long term
sustainable solutions for this risk, together with industry partners and
government. There is too little foundation for the accurate estimate of a
liability and thus no reliable estimate can be made for the obligation.
Soil and Sediment Pollution - South Africa - AngloGold Ashanti identified
offsite pollution impacts in the West Wits Area. This can be attributable to a
long period of gold and uranium mining activity by a number of mining
companies, as well as millennia of weathering of natural reef outcrops in the
catchment areas. Investigations are underway to confirm, quantify and, if
necessary, address these impacts. It is however too early in the process to
make an estimate of the liability.
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 ($11m). 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 exports 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 MSG operation is co-owned with Kinross
Gold Corporation. AngloGold Ashanti Brasil Mineracao Ltda. manages the
operation and its attributable share of the first assessment is approximately
$34m Although MSG requested the TARE in early 2004, the TARE, which authorised
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
MSG and fully cancelled the tax liability related to the first period. The
State of Goias has appealed to the full board of the State of Goias tax
administrative council. The second assessment was issued by the State of Goias
in October 2006 on the same grounds as the first one, and the attributable
share of the assessment is approximately $21m. 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 discussing the case at the judicial sphere. The company`s
attributable share of the assessment is approximately $6m.
Tax Disputes - Brazil - Morro Velho, AngloGold Ashanti Brasil Mineracao and
Mineracao Serra Grande are involved in disputes with tax authorities. These
disputes involve 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 $12m.
18. 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 amount to an
attributable $27m at 31 December 2008 (30 September 2008: attributable $42m).
The last audited value added tax return was for the period ended 30 June 2008
and at the balance sheet date an attributable $20m was audited and $7m 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 $5m at 31 December 2008 (30 September 2008: attributable $7m).
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 and secondly the Custom and Excise authorities. An attributable $5m is
still subject to authorisation by the authorities. 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 due to Sadiola and Yatela. These amounts
outstanding at Sadiola and Yatela have been discounted at 18% based on the
provisions of the proposed protocol. The amounts outstanding at Morila have
been discounted to their present value at a rate of 6.0%.
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 2008 (30 September 2008: $16m). The last audited value
added tax return was for the period ended 30 November 2008 and at the balance
sheet date was $16m. 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 30
December 2008 (30 September 2008: $42m). 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 $16m have been audited and lodged with the Customs and
Excise authorities, whilst claims for refund of $21m have not yet been lodged.
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%.
19. Announcements
On 30 September 2008 AngloGold Ashanti announced that following the publication
the unaudited results for the quarter and six months ended 30 June 2008, it
reassessed the accounting estimate for income taxes, for the effects and impact
of the accelerated non-hedge derivative settlements in accordance with IAS34 -
Interim Financial Reporting. Following this reassessment, the income tax
expense was reduced by R641 million (US$81m) for the period. This was as a
result of IAS34 requiring that the income tax expense for interim reporting
purposes to be calculated by applying to an interim period`s pre-tax income,
the estimated average annual effective income tax rate that would be applicable
to the expected total annual earnings. It should be noted that the
overprovision would have been reversed by financial year- end and therefore
would not have had any effect on the full year`s income tax expense and
earnings.
Nevertheless, in compliance with IAS34, AngloGold Ashanti decided to revise its
results for the quarter and six months ended 30 June 2008.
It is anticipated that the audit report for the year ended on 31 December 2008
will include a reference to the above.
On 17 October 2008, AngloGold Ashanti announced that it had been notified of an
unsolicited below- market "mini-tender offer" by TRC Capital Corporation of
Toronto, Canada to purchase up to approximately 4,000,000 American depositary
shares ("ADSs") of AngloGold Ashanti Limited (each of which represents one
ordinary share), representing approximately 1.14% of AngloGold Ashanti`s
outstanding share capital, at a price of US$18.00 per ADS. AngloGold Ashanti
cautions shareholders that this offer represented a 2.65% discount to the
US$18.49 closing price of ADSs on the New York Stock Exchange on 15 October,
2008, the day prior to the date of the offer and a 2.39% discount to the
US$18.44 closing price of ADSs on 16 October, 2008.
On 21 November 2008, AngloGold Ashanti Limited announced that it had entered
into a US$1 billion term loan facility agreement (the "Term Facility") with
Standard Chartered Bank to refinance its convertible bond.
The Term Facility would be drawn during February 2009 for the purpose of
repaying the US$1 billion convertible bond due on 27 February 2009 issued by
AngloGold Ashanti Holdings plc and guaranteed by AngloGold Ashanti. The Term
Facility is for an initial one year period from the date of the first drawdown
in February 2009 and the Term Facility is extendable, if required, at the
option of AngloGold Ashanti until 30 November 2010.
The terms and covenants of the Term Facility are similar to those of AngloGold
Ashanti`s existing US$1.15 billion Revolving Credit Facility, save that the
amounts drawn under the Term Facility will bear an interest margin of 4.25% for
the first six months after the first drawdown and 5.25% thereafter.
On 15 December 2008, further to its announcement of 31 July 2008, AngloGold
Ashanti announced that it had completed the purchase of Sao Bento Gold Company
Limited ("SBG") and its wholly-owned subsidiary, Sao Bento Mineracao S.A.
("SBMSA") from Eldorado Gold Corporation ("Eldorado") for a consideration of
US$70 million. The purchase price was settled through the issuance of 2,701,660
AngloGold Ashanti shares.
The purchase of SBG and SBMSA gives AngloGold Ashanti access to the Sao Bento
mine, a gold operation located in the immediate vicinity of AngloGold Ashanti`s
proposed Corrego do Sitio mine, located in the municipality of Santa Bento,
Iron Quadrangle region of Minas Gerais State, Brazil. The acquisition of the
Sao Bento mine provides AngloGold Ashanti with the potential to double the
scale of the proposed Corrego do Sitio mine, which once developed will
significantly enhance AngloGold Ashanti`s Brazilian asset base.
On 23 January 2009, AngloGold Ashanti Australia Ltd announced that Mineral
Resource increase for the Tropicana Gold Project in Western Australia. The
Tropicana Gold Project, located 330 kilometres east north-east of Kalgoorlie,
is part of the Tropicana Joint Venture, which is 70% owned by AngloGold Ashanti
Australia (the manager) and 30% by Independence Group NL. The Measured,
Indicated and Inferred Mineral Resource for the project is now 75.3 million
tonnes grading 2.07 grams/tonne for 5.01 million ounces of gold. This
represents an increase of approximately 1 million ounces from the first Mineral
Resource estimate released for the project in December 2007, and the new
estimate is predominantly in the Measured and Indicated category, providing a
higher level of confidence. AngloGold Ashanti Australia`s share of the upgraded
resource is 3.51 Moz.
On 28 January 2009, AngloGold Ashanti Limited announced that it had agreed to
sell its indirect 33.33% joint venture interest in the Boddington Gold Mine in
Western Australia to Newmont Mining Corporation for an aggregate consideration
of up to US$1.1 billion (the "Transaction").
The Transaction is consistent with AngloGold Ashanti`s strategy of focusing on
its core, controlled asset portfolio and realising value from any minority,
non-managed interests as and when appropriate. It will also immediately
strengthen the Company`s balance sheet, result in lower financing costs due to
early repayment of the recently announced US$1.0 billion bridge facility and
create additional flexibility to participate in further investment and growth
opportunities.
20. Dividend
The directors have today declared Final Dividend No. 105 of 50 (Final Dividend
No. 103: 53) South African cents per ordinary share for the year ended 31
December 2008. 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.
2009
Currency conversion date for UK pounds, Australian
dollars and Ghanaian cedis Thursday, 26 February
Last date to trade ordinary shares cum dividend Friday, 27 February
Last date to register transfers of certificated
securities cum dividend Friday, 27 February
Ordinary shares trade ex dividend Monday, 2 March
Record date Friday, 6 March
Payment date Friday, 13 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, 2 March 2009 and Friday, 6
March 2009, 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.
2009
Ex dividend on New York Stock Exchange Wednesday, 4 March
Record date Friday, 6 March
Approximate date for currency conversion Friday, 13 March
Approximate payment date of dividend Monday, 23 March
Assuming an exchange rate of R9.84/$1, the dividend payable on ADS is
equivalent to 5.1 US cents.
This compares with the final dividend of 6.6 US cents per ADS paid on 17 March
2008. 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.
2009
Last date to trade and to register GhDSs cum dividend Friday, 27 February
GhDSs trade ex dividend Monday, 2 March
Record date Thursday, 5 March
Approximate payment date of dividend Monday, 16 March
Assuming an exchange rate of R1/?0.1341, the dividend payable per GhDS is
equivalent to 0.067 cedis.
This compares with the final dividend of 0.065 cedis per Ghanaian Depositary
Share (GhDS) payable on 10 March 2009. However, the actual rate of payment will
depend on the exchange rate on the date for currency conversion. In Ghana, the
authorities have determined that dividends payable to residents on the Ghana
share register be subject to a final withholding tax at a rate of 10%, similar
to the rate applicable to dividend payments made by resident companies which is
currently at 10%.
In addition, directors declared Dividend No. E5 of 25 South African cents per E
ordinary share, payable to employees participating in the Bokamoso ESOP and
Izingwe Holdings (Proprietary) Limited. These dividends will be paid on Friday,
13 March 2009.
By order of the Board
R P EDEY M CUTIFANI
Chairman Chief Executive Officer
6 February 2009
Shareholders` notice board
Diary:
Financial year-end 31 December
Annual financial statements posting on or about 23 March 2009
Annual general meeting 11:00 SA time 14 May 2009
Quarterly reports released:
Quarter ended 31 March 2009 15 May 2009
Quarter ended 30 June 2009 31 July 2009
Quarter ended 30 September 2009 2 November 2009
Quarter ended 31 December 2009 *11 February 2010
Dividends / Declared Last date to trade Payment date to
Dividend Number ordinary shares shareholders
cum dividend
Interim - No. 104 30 July 2008 15 August 2008 29 August 2008
Final - No. 105 6 February 2009 27 February 2009 13 March 2009
Interim - No. 106 29 July 2009 14 August 2008* 28 August 2008*
Dividends / Payment date to ADS
Dividend Number holders
Interim - No. 104 8 September 2008
Final - No. 105 23 March 2009*
Interim - No. 106 7 September 2008*
* 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
ANGLOGOLD ASHANTI LIMITED
Registration No. 1944/017354/06
Incorporated in the Republic of South Africa
Share codes:
ISIN: ZAE000043485
JSE: ANG
LSE: AGD
NYSE: AU
ASX: AGG
GhSE (Shares): AGA
GhSE (GhDS): AAD
Euronext Paris: VA
Euronext Brussels: ANG
JSE Sponsor: UBS
Auditors: Ernst & Young Inc
Offices
Registered and Corporate
76 Jeppe Street
Newtown 2001
(PO Box 62117, Marshalltown 2107)
South Africa
Telephone: +27 11 637 6000
Fax: +27 11 637 6624
Australia
Level 13, St Martins Tower
44 St George`s Terrace
Perth, WA 6000
(PO Box Z5046, Perth WA 6831)
Australia
Telephone: +61 8 9425 4602
Fax: +61 8 9425 4662
Ghana
Gold House
Patrice Lumumba Road
(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
J H Mensah
W A Nairn
Prof W L Nkuhlu
S M Pityana
* British # American ##Ghanaian
Australian
Officers
Company Secretary: Ms L Eatwell
Contacts
Himesh Persotam
Telephone: +27 11 637 6647
Fax: +27 11 637 6400
E-mail: hpersotam@AngloGoldAshanti.com
Renee Beyers
Telephone: +27 11 637 6302
Fax: +27 11 637 6400
E-mail: rbeyers@AngloGoldAshanti.com
General E-mail enquiries
investors@AngloGoldAshanti.com
AngloGold Ashanti website
http://www.AngloGoldAshanti.com
Share Registrars
South Africa
Computershare Investor Services (Pty)
Limited
Ground Floor, 70 Marshall Street
Johannesburg 2001
(PO Box 61051, Marshalltown 2107)
South Africa
Telephone: 0861 100 950 (in SA)
Fax: +27 11 688 5218
web.queries@computershare.co.za
United Kingdom
Computershare Investor Services PLC
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 BuyDIRECT SM
BoNY maintains a direct share purchase
and dividend reinvestment plan for
ANGLOGOLD ASHANTI.
Telephone: +1-888-BNY-ADRS
PRINTED BY INCE (PTY) LIMITED
Certain statements contained in this document, including, without limitation,
those concerning AngloGold Ashanti`s strategy to reduce its gold hedging
position including the extent and effect of the hedge reduction, the economic
outlook for the gold mining industry, expectations regarding gold prices,
production, cash costs and other operating results, growth prospects and
outlook of AngloGold Ashanti`s operations, individually or in the aggregate,
including the completion and commencement of commercial operations of certain
of AngloGold Ashanti`s exploration and production projects and completion of
acquisitions and dispositions, AngloGold Ashanti`s liquidity and capital
resources and expenditure, including its intentions and ability to refinance
its $1 billion convertible bond, and the outcome and consequences of any
pending litigation proceedings, contain certain forward- looking statements
regarding AngloGold Ashanti`s operations, economic performance and financial
condition. Although AngloGold Ashanti 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 and
exchange rates, and business and operational risk management. For a discussion
of such factors, refer to AngloGold Ashanti`s annual report on Form 20-F for
the year ended 31 December 2007 dated 19 May 2008, which was filed with the
Securities and Exchange Commission (SEC) on 19 May 2008. 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
this document 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.
Date: 09/02/2009 07:55:01 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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