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ANG
ANANO
ANG - Anglogold Ashanti Limited - Group results for the quarter ended 31 March
2009
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 ended 31 March 2009
Group results for the quarter....
- Continued progress on safety, with lowest-ever number of Lost Time Injuries,
while maintaining an improved fatality rate.
- Production of 1.103Moz, in line with updated guidance.
- Total cash costs of $445/oz, in line with original guidance.
- Gold spot-price up 14%; received price up 25% quarter-on-quarter.
- Hedge book commitments reduced by further 154,000oz, with 6% discount to
average spot price received.
- Adjusted headline earnings of $150m, up significantly from prior-quarter $17m
loss.
- Further portfolio optimisation through sale of Boddington mine to Newmont
Mining Corp. and Tau Lekoa mine to Simmer & Jack Mines Limited.
- Anglo American Plc sale of remaining stake to Paulson & Company removes
overhang.
Quarter
ended ended
Mar Dec
2009 2008
SA rand / Metric
Operating review
Gold
Produced - kg / oz (000) 34,306 39,429
Price received - R/kg / $/oz 273,109 219,329
Price received normalised for
accelerated settlement of
non-hedge derivatives - R/kg / $/oz 273,109 219,329
Total cash costs - R/kg / $/oz 141,552 134,813
Total production costs - R/kg / $/oz 180,751 172,312
Financial review
Gross profit (loss) - Rm / $m 1,102 2,187
Gross profit (loss) adjusted for
the gain (loss) on unrealised
non-hedge derivatives and other
commodity contracts - Rm / $m 2,764 1,241
Adjusted gross profit normalised
for accelerated settlement of
non-hedge derivatives - Rm / $m 2,764 1,241
Profit (loss) attributable to
equity shareholders - Rm / $m 1 (11,869)
Headline earnings (loss) - Rm / $m - 516
Headline earnings(loss) adjusted
for the gain (loss) on unrealised
non-hedge derivatives and other
commodity contracts and fair value
adjustments on convertible bond - Rm / $m 1,482 (178)
Capital expenditure - Rm / $m 2,381 2,994
(Loss) profit per ordinary share - cents/share
Basic - (3,335)
Diluted - (3,335)
Headline - 145
Headline earnings (loss) adjusted
for the gain (loss) on unrealised
non- hedge derivatives and other
commodity contracts and fair value
adjustments on convertible bond - cents/share 414 (50)
Year
ended ended
Mar Dec
2008 2008
Restated
SA rand / Metric
Operating review
Gold
Produced - kg / oz (000 37,210 154,958
Price received - R/kg / $/oz 183,945 130,522
Price received normalised for
accelerated settlement of
non-hedge derivatives - R/kg / $/oz 183,945 185,887
Total cash costs - R/kg / $/oz 104,461 117,462
Total production costs - R/kg / $/oz 136,200 150,149
Financial review
Gross profit (loss) - Rm / $m (3,530) 939
Gross profit (loss) adjusted for
the gain (loss) on unrealised
non-hedge derivatives and other
commodity contracts - Rm / $m 1,911 (2,945)
Adjusted gross profit normalised for
accelerated settlement of
non-hedge derivatives - Rm / $m 1,911 5,072
Profit (loss) attributable to
equity shareholders - Rm / $m (3,812) (16,105)
Headline earnings (loss) - Rm / $m (3,880) (4,375)
Headline earnings(loss) adjusted for
the gain (loss) on unrealised non-
hedge derivatives and other
commodity contracts and fair value
adjustments on convertible bond - Rm / $m 813 (7,197)
Capital expenditure - Rm / $m 1,930 9,905
(Loss) profit per ordinary share - cents/share
Basic (1,351) (5,077)
Diluted (1,351) (5,077)
Headline (1,376) (1,379)
Headline earnings (loss) adjusted
for the gain (loss) on unrealised
non-hedge derivatives and other
commodity contracts and fair value
adjustments on convertible bond - cents/share 288 (2,269)
Quarter
ended ended
Mar Dec
2009 2008
US dollar / Imperial
Operating review
Gold
Produced - kg / oz (000) 1,103 1,268
Price received - R/kg / $/oz 858 687
Price received normalised for
accelerated settlement of non-hedge
derivatives - R/kg / $/oz 858 687
Total cash costs - R/kg / $/oz 445 422
Total production costs - R/kg / $/oz 568 540
Financial review
Gross profit (loss) - Rm / $m 111 390
Gross profit (loss) adjusted for the
gain (loss) on unrealised non-hedge
derivatives and other commodity
contracts - Rm / $m 279 125
Adjusted gross profit normalised for
accelerated settlement of non-hedge
derivatives - Rm / $m 279 125
Profit (loss) attributable to equity
shareholders - Rm / $m - (1,016)
Headline earnings (loss) - Rm / $m - 234
Headline earnings(loss) adjusted for
the gain (loss) on unrealised non-
hedge derivatives and other
commodity contracts and fair value
adjustments on convertible bond - Rm / $m 150 (17)
Capital expenditure - Rm / $m 241 302
(Loss) profit per ordinary share - cents/share
Basic - (285)
Diluted - (285)
Headline - 66
Headline earnings (loss) adjusted for
the gain (loss) on unrealised non-
hedge derivatives and other
commodity contracts and fair value
adjustments on convertible bond - cents/share 42 (5)
Year
ended ended
Mar Dec
2008 2008
Restated
US dollar / Imperial
Operating review
Gold
Produced - kg / oz (000) 1,196 4,982
Price received - R/kg / $/oz 755 485
Price received normalised for
accelerated settlement of non-hedge
derivatives - R/kg / $/oz 755 702
Total cash costs - R/kg / $/oz 430 444
Total production costs - R/kg / $/oz 561 567
Financial review
Gross profit (loss) - Rm / $m (99) 594
Gross profit (loss) adjusted for the
gain (loss) on unrealised non-hedge
derivatives and other commodity
contracts - Rm / $m 250 (384)
Adjusted gross profit normalised for
accelerated settlement of non-hedge
derivatives - Rm / $m 250 626
Profit (loss) attributable to equity
shareholders - Rm / $m (142) (1,195)
Headline earnings (loss) - Rm / $m (151) (30)
Headline earnings(loss) adjusted for
the gain (loss) on unrealised non-
hedge derivatives and other
commodity contracts and fair value
adjustments on convertible bond - Rm / $m 105 (897)
Capital expenditure - Rm / $m 257 1,201
(Loss) profit per ordinary share - cents/share
Basic (50) (377)
Diluted (50) (377)
Headline (54) (9)
Headline earnings (loss) adjusted for
the gain (loss) on unrealised non-
hedge derivatives and other
commodity contracts and fair value
adjustments on convertible bond - cents/share 37 (283)
$ represents US dollar, unless otherwise stated.
Rounding of figures may result in computational discrepancies.
Operations at a glance
for the quarter ended 31 March 2009
Production Total cash costs
% %
oz (000) Variance 1 $/oz Variance 1
Mponeng 128 (11) 244 10
AngloGold Ashanti Mineracao 68 (18) 288 23
Kopanang 77 (15) 338 9
Cripple Creek & Victor 56 (28) 336 4
Siguiri 2 80 (1) 492 3
Moab Khotsong 65 (8) 292 (8)
Morila 2,3 39 (17) 413 7
Sadiola 2,3 36 (27) 315 (18)
TauTona 59 (16) 385 18
Sunrise Dam 98 15 574 18
Cerro Vanguardia 2 47 (16) 400 (14)
Iduapriem 37 (35) 535 (7)
Navachab 18 (10) 457 (11)
Great Noligwa 43 (32) 587 30
Serra Grande 2 11 (54) 499 92
Tau Lekoa 31 (14) 593 24
Savuka 14 (22) 452 77
Yatela 2,3 14 (13) 547 (2)
Obuasi 92 (6) 701 (2)
Geita 44 (15) 1,018 11
Other 46 70
Sub-total 1,103 (13) 445 5
Less equity accounted
investments
AngloGold Ashanti
Gross profit (loss)
adjusted for the gain
(loss) on unrealised non-
hedge derivatives and
other commodity
contracts
$m
$m Variance 1
Mponeng 63 3
AngloGold Ashanti Mineracao 29 2
Kopanang 25 1
Cripple Creek & Victor 23 3
Siguiri 2 22 12
Moab Khotsong 20 8
Morila 2,3 17 6
Sadiola 2,3 17 12
TauTona 16 9
Sunrise Dam 12 3
Cerro Vanguardia 2 11 9
Iduapriem 10 7
Navachab 6 4
Great Noligwa 4 (4)
Serra Grande 2 4 (3)
Tau Lekoa 4 2
Savuka 4 -
Yatela 2,3 3 -
Obuasi (1) 32
Geita (17) 41
Other 43 26
Sub-total 316 173
Less equity accounted investments (37) (19)
AngloGold Ashanti 279 154
1 Variance March 2009 quarter on December 2008 quarter - increase (decrease).
2 Attributable.
3 Equity accounted joint ventures.
Rounding of figures may result in computational discrepancies.
Financial and operating review
OVERVIEW FOR THE QUARTER
AngloGold Ashanti`s "Safety is Our First Value" campaign has now run for just
over 18 months delivered a substantial impact across the business. While safety
gains were recorded at many of the South African operations during the first
quarter, two employees tragically lost their lives in separate accidents at the
Moab Khotsong and Tau Lekoa mines. The company recorded a Fatal Injury
Frequency Rate (FIFR) of 0.05 per million hours worked, a 58% improvement on
the FIFR of 0.12 in the fourth quarter. The Lost Time Injury Frequency Rate
(LTIFR) of 7.05 during the second quarter, compared with 6.98 in the three
months ending December. Leadership across AngloGold Ashanti remains fully
committed to continuing to improve safety performance to deliver a workplace
free of accidents.
First-quarter gold production of 1.1Moz was 2.4% lower than the initial
guidance of 1.13Moz, but in line with revised guidance issued on 2 April, 2009.
The general operating performance across the business was solid and the
operating issues in South Africa and Tanzania that caused revision of
first-quarter guidance in April have now been resolved.
Southern Africa operations produced 481,000oz at a total cash cost of $347/oz,
compared with 540,000oz at $325/oz in the previous quarter. Uranium output was
5% higher at 369,000lbs. Management`s decision to suspend some underground
operations in South Africa to further improve safety contributed to the
reduction, as did the slower-than-anticipated resumption of work after the
December break. The Vaal River division was further impacted by inventory
lock-up in the plant at Kopanang and the intersection of unidentified
geological structures at Moab Khotsong, while maintenance at Mponeng and a
five-day drillers` strike at Savuka led to lower output from the West Wits
operations. The strike at Savuka related to a disagreement on payments to
drillers and this issue has since been resolved.
The Africa region produced 342,000oz at a total cash cost of $591/oz, compared
with 401,000oz at $586/oz in the previous quarter. Planned reductions in volume
at Yatela and Sadiola as well as a plant breakdown at Geita contributed to
lower production. Strong performances were delivered by Siguiri which benefited
from grade improvements and Obuasi which is successfully meeting its turnaround
objectives.
The South America region produced to its plan of 126,000oz at $348/oz, compared
with 164,000oz at $327/oz in the previous quarter, while Cripple Creek & Victor
in North America had production of 56,000oz at $336/oz versus 78,000oz at
$322/oz in the previous period. AngloGold Ashanti`s Australian operation
produced 98,000oz at A$865/oz ($574/oz), as compared with 85,000oz at A$721/oz
($486/oz) in the previous quarter as Sunrise Dam drew down higher-grade ore
from stockpiles. The Australian operations are performing ahead of planned
targets.
AngloGold Ashanti`s total cash costs rose 5% to $445/oz, in-line with initial
guidance of $440/oz to $450/oz. While the increase was anticipated, it was due
mainly to the lower volumes across most of the company`s mines, partly offset
by lower fuel costs.
The company continued to deliver into hedge commitments, part of its strategy
to reduce its overall position and increase exposure to spot gold-prices. The
net delta of the hedge book reduced by 360,000oz, or 7%, to 4.86Moz with total
commitments of 5.84Moz, reflecting a decline of 154,000oz, or 3% at 31 March
2009. The overall reduction in the hedge position was due to deliveries made
into maturing contracts.
We continue to deliver on our strategic restructuring objectives with the sale
by Anglo American Plc of its remaining stake in the company, thereby removing
the overhang in the market that was perceived by many as an impediment to
optimum share-price performance. Paulson & Co., a US-based investment fund,
purchased Anglo American`s 39.9m shares at $32 each, resulting in a total
consideration of $1.28bn. AngloGold Ashanti management held constructive
dialogue with Paulson & Co. representatives following the purchase and is
encouraged by their support for the company`s ongoing operational and strategic
plans.
Further progress on the strategic restructuring was delivered through the
continuing optimisation of its portfolio of assets, AngloGold Ashanti announced
on 28 January 2009 the sale of its 33.33% stake in the Boddington mine to
Newmont Mining Corporation for up to approximately $1.1bn, comprising $750m in
cash upon closing the deal; $240m in cash or Newmont shares due on 31 December
2009, and up to $100m in quarterly royalty payments based on specific cash
operating margins. Capital expenditure incurred from 1 January 2009 is to be
reimbursed following closure of the sale which is expected by about 30 June
2009.
On 14 February 2009, the company announced an agreement to sell its Tau Lekoa
mine and the adjacent Goedgenoeg and Weltevreden properties to Simmer & Jack
Mines Ltd. Tau Lekoa is a mature, high-cost asset, distant from the company`s
other Vaal River mines where future consolidation synergies are planned.
The sale is for R600m, less up to R150m in un-hedged free cashflow generated by
the mine during 2009, as well as a 3% quarterly royalty revenue on 1.5Moz of
gold, payable when gold trades above R180,000/kg.
The sale is expected to close early 2010.
Exploration expenditure of $31m declined 18% from the previous quarter
reflecting continuous reprioritisation and management of the greenfields
exploration strategy. Greenfields exploration activities were undertaken in
Australia, Colombia, China, the Philippines, Russia and the DRC. Prefeasibility
work on the Tropicana project in Australia remains on schedule for completion
in the second half of 2009. In Colombia, drilling at La Colosa remained
suspended during the quarter pending the award of environmental permits.
Subsequent to the end of the quarter, Colombia`s Ministry of Environment,
Housing and Development indicated it will issue a permit allowing AngloGold
Ashanti to resume exploration on a portion of the La Colosa concession. A
legally binding decision within the government`s administrative process is
being awaited in this regard.
The award of permits will be a significant step forward and allow for
resumption of exploration and other activities related to the project`s
prefeasibility study. Throughout the process, close cooperation will be
undertaken with local communities and non-governmental organizations to
demonstrate that the development of a mine will be undertaken in an
environmentally and socially responsible manner and will have significant
economic benefits for the region.
Internal estimates indicate expenditure of about $200 million over the next
three to four years to increase knowledge of one of the most significant gold
discoveries of the past decade and the first significant gold porphyry
discovery in the Colombian Andes. An investment of that magnitude will create
roughly 700 direct jobs and about three times that number in indirect
employment opportunities.
Adjusted headline earnings were $150m, or US42 cents/share, up from a loss of
$17m, or US5 cents/share in the previous quarter. The turnaround shows
AngloGold Ashanti`s improving leverage to higher spot gold prices with the
reduced hedge commitments, lower amortisation and inventory adjustments. This
result was further underpinned by the solid cost performance, delivered in
spite of the slightly lower production result.
Production for the second quarter of 2009 is expected to be 1.140Moz because of
the number of public holidays in South Africa during the second quarter. Total
cash costs during the quarter are estimated at $465/oz at R9.25/$; A$/$0.66;
BRL2.25/$ and Argentinean peso 3.65/$, at R8.50/$ and A$/$0.73 with the same
BRL and Argentinean peso to the dollar the total cash cost is likely to be
around $485/oz.
The company remains on track to meet its production guidance for the year of
between 4.9Moz to 5.0Moz. The annual total cash cost guidance was $435/oz to
$450/oz and this was based on R9.75/$, A$/$0.68, BRL2.25/$ and Argentinean peso
3.65/$. However, with the strengthening of local currencies and in particular
the South African rand, total cash costs are likely to be in the range of
$450/oz to $460/oz at R9.25/$ and $460/oz to $475/oz at R8.50/$. Capital
expenditure excluding Boddington remains forecast at $840m in 2009 and
management expects to achieve a discount of 6% to the average spot gold price
for the year.
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
Gold price movements and investment markets
Gold continued to benefit from the global financial crisis and in the first
quarter of 2009, recorded the second- highest spot price ever, sustaining the
strong trend which started midway through the fourth quarter of 2008.
The average price during the period under review was $909/oz, a 14% increase on
the $795/oz average price in the final quarter of 2008.
This performance occurred within a period of relative US-dollar strength.
Traditionally, the relationship between the US dollar and the gold price has
been inversely correlated. This dislocation of the gold price and US dollar is
an indication of growing risk aversion among investors and a flight to
US-dollar assets, primarily cash and US Treasuries.
At the same time, the continued efforts of monetary authorities to restart
lending by adding substantial liquidity into the banking system has raised
concerns among analysts and investors, not simply over the inflationary effects
of such actions but also over certain sovereign credit-ratings. The
vulnerability of nations, even those in Western Europe, was evidenced by the
rating downgrades to Spain and Greece during the quarter.
These concerns were the primary driver of the gold price through the first
three months of the year. Exchange Traded Funds (ETFs) in general and the
US-listed SPDR Fund in particular, were beneficiaries of this investment
climate. The nine major gold ETFs collectively grew almost 40% to 53Moz from
the beginning of the year to the end of March, 2009. This outstripped the 37%
growth in existing ETFs over the whole of 2008 and brings ETF holdings to a
significant level in comparison to major Central Bank Holdings.
Central Bank and ETF Gold Holdings
Central Bank Gold Holdings by Country Moz
US 253
Germany 106
IMF 100
France 78
Italy 76
ETF* 53
Switzerland 32
* Combined holdings of nine major ETFs as at end March 2009
Source: WGC
1 tonne = 32 150oz
The speculative community was also invested in gold as evidenced by movements
on the COMEX and CBOT exchanges. This long positioning did not reach the
proportions that were seen earlier in 2008 but under the circumstances remained
robust, reaching a high of 22Moz net long.
It is expected that if the US dollar were to weaken, the traditional inverse
correlation of the dollar and the gold price would reassert itself. This would
almost certainly be true if the US dollar were to decline on fears of rising
inflation and general currency debasement globally.
Producer hedging
Although no analysis has been published yet, the rate of producer de-hedging is
not expected to have been very different from that of the previous quarter.
Physical demand
Jewellery Sales
As expected, the global financial crisis has affected the retail sector
significantly, dampening purchases of gold jewellery as a luxury item in most
countries, particularly in the US, India and the Middle East.
Despite this general trend, demand for gold purchases in China, now the
second-largest single market for gold jewellery, remained stable. The relative
buoyancy of the market was assisted by the advent of the Chinese New Year
during the quarter, which is traditionally a peak period for gold-jewellery
purchases. Demand then slowed towards the middle of March, in line with normal
seasonal trends.
The US jewellery market has been badly affected by the global financial crisis.
Although first-quarter retail- sales figures are typically low following the
Christmas period, the current spending crunch along with the historically high
price of gold, has made gold-jewellery purchases difficult for lower-end
consumers. Retailers, including mass-market companies like WalMart, have
responded by cutting back on stock levels of gold jewellery. Current market
conditions are leading to consolidation throughout the value chain.
Financial instability also impacted negatively on the Middle East market, with
local retail trades and the tourist sector affected. The second quarter may,
however, bring some recovery as it is usually the heaviest spending season in
the Middle East with the traditional wedding season typically accounting for
some 60% of annual gold jewellery demand.
The Egyptian market, which performed strongly in 2008, saw a decrease in demand
due to more difficult economic conditions. In Turkey, where the lira has
depreciated by 30% against the US dollar since the financial crisis began, the
local gold price has increased and consumption declined. The US market
typically accounts for a large proportion of gold-jewellery exports from Turkey
and the country`s export trade was therefore significantly affected. Both the
Egyptian and the Gulf markets reported high levels of scrap sales during the
quarter, a result of more difficult economic circumstances, a flight to cash
and rising gold prices.
India, which accounts for approximately 30% of global jewellery consumption,
experienced a slow start to 2009. The increase in gold prices, along with an
increasingly conservative attitude towards spending, dampened demand in the
sector. Some recovery may, however, take place during the second quarter,
particularly in the rural areas, in response to the harvest and the traditional
gold buying festival of Akshaya Tritia.
As would be expected under the current financial circumstances, the Indian
market also saw the increased use of scrap gold in the fabrication of new gold
jewellery, as consumers preferred to use existing metal to modernize their
jewellery rather than make new purchases. The market also trended towards the
sale of lighter-weight products which consume less gold and can be retailed at
lower price points.
Investment Market
As noted previously, investment demand in ETFs was significant during the first
quarter of the year, with total holdings once again reaching record levels.
Underlying sentiment relating to the gold market and the role of gold as a
safe-haven asset contributed to good demand for investment products, where cash
was available. In India, for example, a recently launched scheme to retail gold
medallions through post offices has been quite successful.
Despite the weakness of the retail market for gold jewellery in the US, demand
for gold bars and coins remained strong, while supply shortages became more
serious with the US Mint apparently unwilling to invest in new production
capacity.
Central Bank Sales
Sales under the Central Bank Gold Agreement remain far below the available
quotas. Post quarter-end, the G20 summit communique signalled a strong
intention to sell IMF gold in order to provide concessional and flexible
finance for the poorest countries over the next 2-3 years. As noted in previous
reports to shareholders, gold sales by the IMF would still require
congressional approval and are expected to take place in the framework of the
Central Bank Agreement.
Exploration
Total exploration expenditure during the first quarter, inclusive of
expenditure at equity accounted joint ventures, was $31m ($15m brownfields,
$16m greenfields), compared with $38m ($16m brownfields, $22m greenfields) the
previous quarter.
BROWNFIELDS EXPLORATION
In South Africa, surface drilling continued in the Project Zaaiplaats area,
with MMB5 intersecting the Jersey Fault at 3,276.83m. A deflection to the Vaal
Reef was started at 2,600m. MZA9 is currently re-drilling from 1,654.7m after
in-hole complications. The first reef intersection is only expected in the
fourth quarter. MGR8 advanced 1,123m to 2,718.83m.
In the Moab North area, Borehole MCY4 did not progress during the quarter due
to in-hole problems.
In the West Rand, a new rig and crew were established on the old UD51 site.
Rigging is underway and drilling is expected to commence by the end of April.
The hole will be drilled vertically to intersect prospective VCR at about 3,900
metres.
At Iduapriem in Ghana, drilling at Ajopa was completed and no further field
activities were conducted. Assay results are expected early in the next
quarter, after which Mineral Resource modelling will commence. At Obuasi,
exploration continued with three holes advancing below 50 level.
In Argentina, at Cerro Vanguardia, the exploration programme continued with
4,095.1m of Mineral Resource delineation drilling and 3,151m of reconnaissance
drilling. The environmental approval was obtained for the El Volcan project
area and initial exploration started.
In Australia, at Boddington, three rigs were employed on the BGM Mineral
Resource conversion and near- mine exploration diamond-drilling programme.
During the quarter, approximately 17,818m were drilled in 29 holes.
At Sunrise Dam, exploration focussed on infill drilling within the existing
Mega Pit and continued extension of the underground Mineral-Resources. The
drilling within the Mega Pit will confirm whether the potential exists for an
internal cutback, which becomes economically viable at higher gold prices.
During the period, 46 diamond drill holes were drilled for 9,604.8m. The in-pit
drilling has confirmed that the mineralisation beneath the Sunrise shear and
Midway shear zones continues up-dip and may provide the opportunity for an
internal cutback on the eastern side of the Mega Pit. Further underground
drilling has identified extensions to the high-grade Cosmo, Astro and GQ lodes.
Additional mineralisation around the Dolly lode has also been delineated.
In addition, exploration for satellite pits in the surrounding district
continued at the Golden Delicious and Wilga (Chalice 100%; AGA Earning 75%)
prospects.
In Brazil, at the Corrego do Si-tio Sulphide Project, drilling continued with
6,700.1m being drilled from surface and 1,662.2m drilled from underground. At
the Lamego project, 5,152.3m of surface drilling and 2,331.7m underground
drilling was completed.
At Siguiri in Guinea, exploration focused on the in-fill drilling within the
combined pits preliminary models.
Targets drill tested were adjacent to and between the Bidini, Sanu-Tinti,
Sorofe, Tubani, Kalamagna and Kami pits, where a combined 267 RC holes
(34,051m) were drilled.
Diamond drilling has commenced to investigate the fresh rock potential below
Kosise Pit, where the oxides have been mined out and at Bidini, where mining
has been completed in the main pit. Extension drilling to the Sintroko Project,
based on anomalous soil-sampling and previous drilling, was done to the north,
east and west of the main deposit, (17,620m Air Core, 189 holes). The drilling
has indicated possible extensions to the north and west of the Sintroko
deposit. All results are expected to be available for interpretation during the
second quarter.
Geochemical soil sampling continued in Block 1 to the north and north east of
current mining operations and east of the Sintroko Project. Cumulative results
have not identified any new anomalies at this stage. Drill plans are in place
to investigate geochemical anomalies to the north and northwest of the
Seguelen deposit identified from sampling in 2008.
At Geita in Tanzania, exploration continued at Star and Comet where four
diamond and four RC holes were drilled in order to increase confidence in the
mineral resource. Assay results indicate consistent gold mineralisation.
Aircore results for Matandani NW proved to be disappointing and at Nyamalembo,
data interpretation is ongoing. Infill drilling at Kalondwa Hill was completed
and 1,892m was drilled. Geological interpretation is ongoing as assay results
are awaited.
At Morila, in Mali, work continued on refining the deposit-emplacement model,
with the reduced intrusion- related gold system (RIRGS) favoured. Drilling
below Pit4N and Pit 4S intersected ore-grade mineralisation within predicted
zones. However, extensive granodiorite occurrences have downgraded the
potential for significant ore tonnages. Drilling is ongoing.
At Sadiola and Yatela, exploration activity focused on drilling of three areas.
At KE17, a gravity-low adjacent to the escarpment and to the southeast of
Yatela, a program commenced that is aimed at verifying the continuity of the
mineralisation intersected during the last round of drilling and to determine
mineralisation plunge under the escarpment. Fifteen holes were completed and an
assessment will be made in the next quarter regarding further follow-up
drilling. At YG1, a gravity-low target located to the southwest of Yatela pit,
was tested with 9 holes. Results are pending. At YG2, another gravity-low
target located to the south of Yatela pit and east of YG1, 12 holes were
drilled. Results are pending, although field evidence suggests no further work
will be required.
At Navachab in Namibia, exploration at Gecko continues. Three diamond holes
totalling 561m were drilled and are aimed at improving the understanding of the
structural setting. The Gecko Mineral Resource model was completed and has been
handed over to the mine-planning team. Exploration around the Main pit focused
on expanding the Mineral Resource base by extending Indicated and Inferred
mineralisation limits on NP2 FW and MDM/US HW sheeted-vein sets to the north. A
total of 3,364m of diamond drilling was completed in the quarter. One infill
and ten down-plunge holes at a total of 2,507m were drilled in the NP2 FW-vein
target and a total of 857m were drilled in the MDM/US HW vein target. Assays
are awaited.
At Cripple Creek & Victor in the United States, drilling continues to evaluate
the Squaw Gulch and North Cresson areas. Encouraging intercepts are under
review. Drilling for the High Grade Study was focused along the east wall of
the Cresson deposit. Data is accumulating from the current drill program and
will be used to predict the grades and tonnages of high-grade zones that will
be encountered during surface mining operations.
GREENFIELDS EXPLORATION
Greenfields exploration activities were undertaken in Australia, the Americas,
China, SE Asia, Sub-Saharan Africa, Russia and the DRC during the first quarter
of 2009. A total of 42,161m of reverse circulation (RC) and aircore drilling
(AC) was completed at existing priority targets and used to delineate new
targets in Australia.
In Australia, on the Tropicana Joint Venture, (AngloGold Ashanti 70%,
Independence Group 30%) prefeasibility studies on the Tropicana Gold Project
are continuing and completion of the study is scheduled for the second quarter
of 2009. Technical studies for the project are substantially completed with
financial analysis to define the optimal project to be evaluated during
feasibility study.
Draft environmental impact assessment documents have been submitted and are
currently under review by relevant government agencies. It is anticipated
public review of the proposed project will occur mid-year.
Approvals for the project should be obtained by the second quarter 2010,
providing there are no substantive public appeals or delays through the
environmental assessment process.
In parallel with the prefeasibility study, exploration in the Tropicana Joint
Venture (JV) has focussed on exploration targets within trucking distance of
the Tropicana Gold Project.
During the quarter, a total of 916 AC holes were drilled for 34,242 metres and
50 RC holes for 7,919 metres. Auger sampling continued across areas adjacent to
the Tropicana-Havana deposit and nearly 8,000km of aeromagnetic survey was
flown.
Best results for the quarter came from RC drilling intercepts at Havana South
including 15m @ 3.1g/t Au from 126m, 10m @ 4.14g/t Au from 130m and 13m @
2.34g/t Au from 73m. These results follow up significant results from 2008, and
confirm mineralisation outside of previous pit shells and should extend the
current resource.
Significant AC drilling results were returned from Stromboli including 4m @
0.39g/t Au from 12m.
The Viking project which is approximately 8,300 square-kilometre in size, is
located southwest of the Tropicana JV, possibly within the same geological
setting that hosts the Tropicana deposit.
Systematic surface geochemical-sampling commenced with 3,300 samples collected.
Additional and follow-up sampling is scheduled in the second quarter.
In Colombia, Phase I and Phase II Greenfield exploration was completed by
AngloGold Ashanti and by joint venture partners B2Gold and Mineros S.A. No
drilling was undertaken by AngloGold Ashanti or its JV partners during the
quarter. In-house airborne magnetic and radiometric surveys were flown during
the quarter for 1,472.53 line kilometres over the La Colosa north, Gramalote
and Cisneros prospects. The total area under exploration in Colombia at the end
of the quarter was 30,298 square kilometres.
At Gramalote (51% B2Gold, 49% AngloGold Ashanti), B2Gold published a NC43-101
compliant resource estimate for the Gramalote Ridge sector of the project in
January, 2009 (refer Table 1 below).
TABLE 1: B2GOLD`S UPDATED GRAMALOTE RIDGE RESOURCES ESTIMATE, QUARTER 1 : 2009
Whittle Pit Optimisation Gold g/t Tonnes
Au Price Assumption cut-off grade (x1,000)
US$800 0.5 63,630
US$800 0.3 86,069
US$1,000 0.5 74,375
US$1,000 0.3 101,948
Contained Metal
Whittle Pit Optimisation Gold Grade Gold Troy Ounces
Au Price Assumption (g/t Au)
(x1,000)
US$800 1.01 2,074
US$800 0.85 2,360
US$1,000 1.00 2,387
US$1,000 0.84 2,738
At the La Quebradona porphyry copper-gold district (49% B2Gold, 51% AngloGold
Ashanti), AngloGold Ashanti has exercised its option to control 51% of the
project.
Generative Greenfield exploration programmes are ongoing in Colombia
predominantly utilising stream sediment geochemistry.
In the remainder of the Americas, AngloGold Ashanti continued to compile and
review geology, mineral potential and third-party opportunities, primarily in
Brazil and Canada. Prospective belts have been identified and ranked, with
continued focus on the merging of available technical and non-technical
datasets over the top-seven belts to further refine targets, priorities and
their potential availability for Greenfield exploration programmes.
In China, progress on the Jinchanggou project was reviewed. As a result, a
recommendation has been made to the board of the Gansu Longxing Minerals
Company to discontinue exploration on the project. Alternative business
outcomes for the project/joint venture are currently being considered.
In Southeast Asia, the grant of the Mapawa title in the Philippines has
proceeded to the Secretary of Mines for final ratification. Project-generation
activities and evaluation of opportunities are ongoing in a number of other
areas in the region.
In Russia the dissolution of the incorporated joint venture with Polymetal is
in progress, focused on selling the two exploration and four mining licences
held by JV companies. A new, unincorporated alliance with Polymetal has
commenced, aimed at the joint identification and development of more advanced
opportunities anywhere in Russia and potentially in the former CIS. AngloGold
Ashanti considers Russia to be of strategic future importance and would like to
develop a profitable operation with their local partner, in order to create a
platform for future growth.
In Sub-Saharan Africa, work during the first quarter concentrated on project
generation and specific project reviews in Central and Western Africa.
In the Democratic Republic of the Congo, no drilling took place during the
quarter. A high priority is to improve the interpretation of the mylonite zone
and associated wireframes of the Mongbwalu geological model.
Assay results were received from drilling completed at Adidi South late last
year. The best intersection received was 6m @ 4.75g/t Au from 151m. A review of
all regional exploration data at the Bunia West, Petsi, Mont Tsi, Camp 3 and
Lodjo prospects was instigated during the quarter.
Hedge position
As at 31 March 2009, the net delta hedge position was 4.86Moz or 151t (at 31
December 2008: 5.22Moz or 162t), representing a further reduction of 0.36Moz
for the quarter. The total commitments of the hedge book as at 31 March 2009
was 5.84Moz or 182t, a reduction of 0.15Moz from the position as at 31 December
2008.
The marked-to-market value of all hedge transactions making up the hedge
positions was a negative $2.48bn (negative R23.84bn), increasing by $0.02bn
(R0.59bn) over the quarter. This value was based on a gold price of $919.80/oz,
exchange rates of R9.59/$ and A$/$0.69 and the prevailing market interest rates
and volatilities at that date.
The company`s received price for the first quarter was $858/oz, 6% below the
average spot price for the same period.
As at 13 May 2009, the marked-to-market value of the hedge book was a negative
$2.64bn (negative R22.13bn), based on a gold price of $925.80/oz and exchange
rates of R8.37/$ and A$/$0.77 and the prevailing market interest rates and
volatilities at the time.
These marked-to-market valuations are in no way predictive of the future value
of the hedge position, nor of the future impact on the revenue of the company.
The valuation represents the theoretical cost of closing all hedge contracts at
the time of valuation, at market prices and rates available at that time.
The following table indicates the group`s commodity hedge position at 31 March
2009
Year 2009 2010 2011
DOLLAR GOLD
Forward
contracts Amount (oz) *(439,874) 218,590 378,250
**US$/oz $1,037 $86 $383
Put options
sold Amount (oz) 460,000 185,860 98,000
US$/oz $818 $733 $533
Call options
sold Amount (oz) 588,000 1,123,630 1,231,770
US$/oz $730 $555 $530
RAND GOLD
Forward
contracts Amount (oz) *(60,000)
Rand/oz R9,540
A DOLLAR GOLD
Forward
contracts Amount (oz) *(8,554) 100,000
A$/oz A$1,617 A$652
Call options
purchased Amount (oz) 40,000 100,000
A$/oz A$694 A$712
Delta (oz) 258,640 (1,170,960) (1,458,850)
*** Total net
gold:
Committed (oz) (39,572) (1,342,220) (1,610,020)
Year 2012 2013
DOLLAR GOLD
Forward contracts Amount (oz) 359,000 306,000
**US$/oz $388 $408
Put options sold Amount (oz) 85,500 60,500
US$/oz $538 $440
Call options sold Amount (oz) 811,420 574,120
US$/oz $635 $601
RAND GOLD
Forward contracts Amount (oz)
Rand/oz
A DOLLAR GOLD
Forward contracts Amount (oz)
A$/oz
Call options purchased Amount (oz)
A$/oz
Delta (oz) (1,015,650) (784,960)
*** Total net gold:
Committed (oz) (1,170,420) (880,120)
Year 2014-2015 Total
DOLLAR GOLD
Forward contracts Amount (oz) 91,500 913,466
**US$/oz $510 $20
Put options sold Amount (oz) 60,500 950,360
US$/oz $450 $699
Call options sold Amount (oz) 709,470 5,038,410
US$/oz $606 $595
RAND GOLD
Forward contracts Amount (oz) *(60,000)
Rand/oz R9,540
A DOLLAR GOLD
Forward contracts Amount (oz) 91,446
A$/oz A$562
Call options purchased Amount (oz) 140,000
A$/oz A$707
Delta (oz) (685,830) (4,857,610)
*** Total net gold:
Committed (oz) (800,970) (5,843,322)
* Indicates a net long position resulting from forward purchase contracts.
** The price represents the average weighted price, combining both forward
sales and purchases for the period.
*** The Delta of the hedge position indicated above is the equivalent gold
position that would have the same marked-to-market sensitivity for a small
change in the gold price. This is calculated using the Black-Scholes option
formula with the ruling market prices, interest rates and volatilities as at 31
March 2009.
Rounding of figures may result in computational discrepancies.
The following table indicates the group`s currency hedge position at 31 March
2009
Year 2009 2010 2011 2012
RAND DOLLAR (000)
Put options purchased Amount ($) 50,000
US$/R R11.22
Put options sold Amount ($) 60,000
US$/R R9.78
Call options sold Amount ($) 60,000
US$/R R12.57
A DOLLAR (000)
Forward contracts Amount ($) 450,000
A$/US$ A$0.65
Put options purchased Amount ($) 10,000
A$/US$ A$0.69
Put options sold Amount ($) 10,000
A$/US$ A$0.76
Call options sold Amount ($) 10,000
A$/US$ A$0.64
BRAZILIAN REAL (000)
Forward contracts Amount ($) 59,390
US$/BRL BRL 2.06
Year 2013 2014-2015 Total
RAND DOLLAR (000)
Put options purchased Amount ($) 50,000
US$/R R11.22
Put options sold Amount ($) 60,000
US$/R R9.78
Call options sold Amount ($) 60,000
US$/R R12.57
A DOLLAR (000)
Forward contracts Amount ($) 450,000
A$/US$ A$0.65
Put options purchased Amount ($) 10,000
A$/US$ A$0.69
Put options sold Amount ($) 10,000
A$/US$ A$0.76
Call options sold Amount ($) 10,000
A$/US$ A$0.64
BRAZILIAN REAL (000)
Forward contracts Amount ($) 59,390
US$/BRL BRL 2.06
Fair value of derivative analysis by accounting designation as at 31 March 2009
Cash flow
Normal sale hedge
exempted accounted
US Dollar (millions)
Commodity option contracts (461) -
Foreign exchange option contracts - -
Forward sale commodity contracts (717) (106)
Forward foreign exchange contracts - -
Interest rate swaps (26) -
Total derivatives (1,204) (106)
Credit risk adjustment (105) (1)
Total derivatives - before credit risk adjustment (1,309) (107)
Non-hedge
accounted Total
US Dollar (millions)
Commodity option contracts (1,315) (1,776)
Foreign exchange option contracts 3 3
Forward sale commodity contracts 61 (762)
Forward foreign exchange contracts 20 20
Interest rate swaps 19 (7)
Total derivatives (1,212) (2,522)
Credit risk adjustment (244) (350)
Total derivatives - before credit risk adjustment (1,456) (2,872)
Rounding of figures may result in computational discrepancies.
Development
for the quarter ended 31 March 2009
Development values represent actual results of sampling, no allowances having
been made for adjustments necessary in estimating ore reserves.
Statistics are shown in metric units
Advanced
metres Sampled Ave. channel
(total) metres width (cm)
SOUTHERN AFRICA - VAAL RIVER
Great Noligw a Mine
Vaal reef 838 94 93.6
Kopanang Mine
Vaal reef 6,163 658 26.0
Tau Lekoa Mine
Ventersdorp Contact reef 1,949 208 80.2
Moab Khotsong Mine
Vaal reef 4,589 382 139.6
SOUTHERN AFRICA - WEST WITS
Tau Tona Mine
Ventersdorp Contact reef 117 - -
Carbon Leader reef 2,385 94 13.9
Savuka Mine
Carbon Leader reef 642 - -
Mponeng Mine
Ventersdorp Contact reef 3,533 504 57.8
AUSTRALIA
Sunrise Dam 739 739 -
SOUTH AMERICA
AngloGold Ashanti Mineracao
Mina de Cuiaba 1,373 368 -
Corrego do Sitio 1,060 357 -
Lamego 1,004 130 -
Serra Grande
Mina III 828 222 -
Mina Nova 646 - -
REST OF AFRICA
Obuasi 6,161 2,121 *470
Sampled
gold
Ave. g/t Ave. cm.g/t
SOUTHERN AFRICA - VAAL RIVER
Great Noligw a Mine
Vaal reef 7.75 725
Kopanang Mine
Vaal reef 102.50 2,665
Tau Lekoa Mine
Ventersdorp Contact reef 15.80 1,267
Moab Khotsong Mine
Vaal reef 18.09 2,526
SOUTHERN AFRICA - WEST WITS
Tau Tona Mine
Ventersdorp Contact reef - -
Carbon Leader reef 150.29 2,089
Savuka Mine
Carbon Leader reef - -
Mponeng Mine
Ventersdorp Contact reef 39.43 2,279
AUSTRALIA
Sunrise Dam 2.51 -
SOUTH AMERICA
AngloGold Ashanti Mineracao
Mina de Cuiaba 4.79 -
Corrego do Sitio 3.39 -
Lamego 2.13 -
Serra Grande
Mina III 5.63 -
Mina Nova - -
REST OF AFRICA
Obuasi 7.25 3,408
uranium
Ave. kg/t Ave. cm.kg/t
SOUTHERN AFRICA - VAAL RIVER
Great Noligw a Mine
Vaal reef 0.68 63.26
Kopanang Mine
Vaal reef 3.87 102.95
Tau Lekoa Mine
Ventersdorp Contact reef - -
Moab Khotsong Mine
Vaal reef 0.84 126.66
SOUTHERN AFRICA - WEST WITS
Tau Tona Mine
Ventersdorp Contact reef - -
Carbon Leader reef 2.35 32.37
Savuka Mine
Carbon Leader reef - -
Mponeng Mine
Ventersdorp Contact reef - -
AUSTRALIA
Sunrise Dam - -
SOUTH AMERICA
AngloGold Ashanti Mineracao
Mina de Cuiaba - -
Corrego do Sitio - -
Lamego - -
Serra Grande
Mina III - -
Mina Nova - -
REST OF AFRICA
Obuasi - -
Statistics are shown in imperial units
Advanced
feet Sampled Ave. channel
(total) feet width (inches)
SOUTHERN AFRICA - VAAL RIVER
Great Noligw a Mine
Vaal reef 2,749 308 36.9
Kopanang Mine
Vaal reef 20,221 2,159 10.2
Tau Lekoa Mine
Ventersdorp Contact reef 6,394 682 31.6
Moab Khotsong Mine
Vaal reef 15,057 1,253 55.0
SOUTHERN AFRICA - WEST WITS
Tau Tona Mine
Ventersdorp Contact reef 382 - -
Carbon Leader reef 7,825 308 5.5
Savuka Mine
Carbon Leader reef 2,107 - -
Mponeng Mine
Ventersdorp Contact reef 11,590 1,654 22.8
AUSTRALIA
Sunrise Dam 2,425 2,425 -
SOUTH AMERICA
AngloGold Ashanti Mineracao
Mina de Cuiaba 4,504 1,207 -
Corrego do Sitio 3,476 1,172 -
Lamego 3,295 427 -
Serra Grande
Mina III 2,717 728 -
Mina Nova 2,119 - -
REST OF AFRICA
Obuasi 20,212 6,957 *185
Sampled
gold
Ave. oz/t Ave. ft.oz/t
SOUTHERN AFRICA - VAAL RIVER
Great Noligw a Mine
Vaal reef 0.23 0.69
Kopanang Mine
Vaal reef 2.99 2.55
Tau Lekoa Mine
Ventersdorp Contact reef 0.46 1.21
Moab Khotsong Mine
Vaal reef 0.53 2.42
SOUTHERN AFRICA - WEST WITS
Tau Tona Mine
Ventersdorp Contact reef - -
Carbon Leader reef 4.38 2.00
Savuka Mine
Carbon Leader reef - -
Mponeng Mine
Ventersdorp Contact reef 1.15 2.18
AUSTRALIA
Sunrise Dam 0.07 -
SOUTH AMERICA
AngloGold Ashanti Mineracao
Mina de Cuiaba 0.14 -
Corrego do Sitio 0.10 -
Lamego 0.06 -
Serra Grande
Mina III 0.16 -
Mina Nova - -
REST OF AFRICA
Obuasi 0.21 3.26
uranium
Ave. lb/t Ave. ft.lb/t
SOUTHERN AFRICA - VAAL RIVER
Great Noligw a Mine
Vaal reef 1.36 4.18
Kopanang Mine
Vaal reef 7.74 6.60
Tau Lekoa Mine
Ventersdorp Contact reef - -
Moab Khotsong Mine
Vaal reef 1.68 7.69
SOUTHERN AFRICA - WEST WITS
Tau Tona Mine
Ventersdorp Contact reef - -
Carbon Leader reef 4.70 2.14
Savuka Mine
Carbon Leader reef - -
Mponeng Mine
Ventersdorp Contact reef - -
AUSTRALIA
Sunrise Dam - -
SOUTH AMERICA
AngloGold Ashanti Mineracao
Mina de Cuiaba - -
Corrego do Sitio - -
Lamego - -
Serra Grande
Mina III - -
Mina Nova - -
REST OF AFRICA
Obuasi - -
* Average ore body width.
Group operating results
Quarter ended
Mar Dec
2009 2008
Unaudited
Rand / Metric
OPERATING RESULTS
UNDERGROUND OPERATION
Milled
- 000 tonnes / - 000 tons 3,032 3,227
Yield
-g/t / - oz / t 6.22 6.72
Gold produced
- kg / - oz (000) 18,857 21,679
SURFACE AND DUMP RECLAMATION
Treated
- 000 tonnes / - 000 tons 3,264 3,092
Yield
-g/t / - oz / t 0.56 0.44
Gold produced
- kg / - oz (000) 1,824 1,362
OPEN-PIT OPERATION
Mined
- 000 tonnes / - 000 tons 45,352 40,332
Treated
- 000 tonnes / - 000 tons 5,737 6,575
Stripping ratio
- t (mined total - mined ore) / t mined ore 5.44 4.65
Yield
-g/t / - oz / t 1.99 2.01
Gold in ore
- kg / - oz (000) 7,750 18,394
Gold produced
- kg / - oz (000) 11,406 13,240
HEAP LEACH OPERATION
Mined
- 000 tonnes / - 000 tons 13,882 13,712
Placed 1
- 000 tonnes / - 000 tons 5,605 5,861
Stripping ratio
- t (mined total - mined ore) / t mined ore 1.51 1.47
Yield 2
-g/t / - oz / t 0.57 0.61
Gold placed 3
- kg / - oz (000) 3,220 3,577
Gold produced
- kg / - oz (000) 2,219 3,148
TOTAL
Gold produced
- kg / - oz (000) 34,306 39,429
Gold sold
- kg / - oz (000) 32,584 39,249
Price received
- R / kg / - $ / oz - sold 273,109 219,329
Price received normalised for
accelerated settlement of non-
hedge derivatives
- R / kg / - $ / oz - sold 273,109 219,329
Total cash costs
- R / kg / - $ / oz - produced 141,552 134,813
Total production costs
- R / kg / - $ / oz - produced 180,751 172,312
PRODUCTIVITY PER EMPLOYEE
Target
-g / - oz 293 342
Actual
-g / - oz 287 295
CAPITAL EXPENDITURE
- Rm / - $m 2,381 2,994
Year
ended
Mar Dec
2008 2008
Unaudited
Rand / Metric
OPERATING RESULTS
UNDERGROUND OPERATION
Milled
- 000 tonnes / - 000 tons 2,901 12,335
Yield
-g/t / - oz / t 6.95 6.89
Gold produced
- kg / - oz (000) 20,164 85,025
SURFACE AND DUMP RECLAMATION
Treated
- 000 tonnes / - 000 tons 2,826 11,870
Yield
-g/t / - oz / t 0.47 0.42
Gold produced
- kg / - oz (000) 1,318 5,009
OPEN-PIT OPERATION
Mined
- 000 tonnes / - 000 tons 46,554 175,999
Treated
- 000 tonnes / - 000 tons 6,331 25,388
Stripping ratio
- t (mined total - mined ore) / t mined ore 4.91 5.24
Yield
-g/t / - oz / t 2.09 2.12
Gold in ore
- kg / - oz (000) 12,266 47,160
Gold produced
- kg / - oz (000) 13,240 53,930
HEAP LEACH OPERATION
Mined
- 000 tonnes / - 000 tons 13,239 54,754
Placed 1
- 000 tonnes / - 000 tons 5,408 23,462
Stripping ratio
- t (mined total - mined ore) / t mined ore 1.43 1.43
Yield 2
-g/t / - oz / t 0.67 0.62
Gold placed 3
- kg / - oz (000) 3,613 14,496
Gold produced
- kg / - oz (000) 2,488 10,994
TOTAL
Gold produced
- kg / - oz (000) 37,210 154,958
Gold sold
- kg / - oz (000) 37,098 155,954
Price received
- R / kg / - $ / oz - sold 183,945 130,522
Price received normalised for
accelerated settlement of non-
hedge derivatives
- R / kg / - $ / oz - sold 183,945 185,887
Total cash costs
- R / kg / - $ / oz - produced 104,461 117,462
Total production costs
- R / kg / - $ / oz - produced 136,200 150,149
PRODUCTIVITY PER EMPLOYEE
Target
-g / - oz 303 333
Actual
-g / - oz 302 309
CAPITAL EXPENDITURE
- Rm / - $m 1,930 9,905
Quarter ended
Mar Dec
2009 2008
Unaudited
Dollar / Imperial
OPERATING RESULTS
UNDERGROUND OPERATION
Milled
- 000 tonnes / - 000 tons 3,343 3,557
Yield
-g/t / - oz / t 0.181 0.196
Gold produced
- kg / - oz (000) 606 697
SURFACE AND DUMP RECLAMATION
Treated
- 000 tonnes / - 000 tons 3,598 3,408
Yield
-g/t / - oz / t 0.016 0.013
Gold produced
- kg / - oz (000) 59 44
OPEN-PIT OPERATION
Mined
- 000 tonnes / - 000 tons 49,992 44,458
Treated
- 000 tonnes / - 000 tons 6,324 7,248
Stripping ratio
- t (mined total - mined ore) / t mined ore 5.44 4.65
Yield
-g/t / - oz / t 0.058 0.059
Gold in ore
- kg / - oz (000) 249 591
Gold produced
- kg / - oz (000) 367 426
HEAP LEACH OPERATION
Mined
- 000 tonnes / - 000 tons 15,302 15,115
Placed 1
- 000 tonnes / - 000 tons 6,179 6,460
Stripping ratio
- t (mined total - mined ore) / t mined ore 1.51 1.47
Yield 2
-g/t / - oz / t 0.017 0.018
Gold placed 3
- kg / - oz (000) 104 115
Gold produced
- kg / - oz (000) 71 101
TOTAL
Gold produced
- kg / - oz (000) 1,103 1,268
Gold sold
- kg / - oz (000) 1,048 1,262
Price received
- R / kg / - $ / oz - sold 858 687
Price received normalised for
accelerated settlement of non-
hedge derivatives
- R / kg / - $ / oz - sold 858 687
Total cash costs
- R / kg / - $ / oz - produced 445 422
Total production costs
- R / kg / - $ / oz - produced 568 540
PRODUCTIVITY PER EMPLOYEE
Target
-g / - oz 9.42 11.00
Actual
-g / - oz 9.23 9.48
CAPITAL EXPENDITURE
- Rm / - $m 241 302
Year
ended
Mar Dec
2008 2008
Unaudited
Dollar / Imperial
OPERATING RESULTS
UNDERGROUND OPERATION
Milled
- 000 tonnes / - 000 tons 3,197 13,597
Yield
-g/t / - oz / t 0.203 0.201
Gold produced
- kg / - oz (000) 648 2,734
SURFACE AND DUMP RECLAMATION
Treated
- 000 tonnes / - 000 tons 3,115 13,085
Yield
-g/t / - oz / t 0.014 0.012
Gold produced
- kg / - oz (000) 42 161
OPEN-PIT OPERATION
Mined
- 000 tonnes / - 000 tons 51,317 194,006
Treated
- 000 tonnes / - 000 tons 6,979 27,985
Stripping ratio
- t (mined total - mined ore) / t mined ore 4.91 5.24
Yield
-g/t / - oz / t 0.061 0.062
Gold in ore
- kg / - oz (000) 394 1,516
Gold produced
- kg / - oz (000) 426 1,734
HEAP LEACH OPERATION
Mined
- 000 tonnes / - 000 tons 14,593 60,356
Placed 1
- 000 tonnes / - 000 tons 5,962 25,863
Stripping ratio
- t (mined total - mined ore) / t mined ore 1.43 1.43
Yield 2
-g/t / - oz / t 0.019 0.018
Gold placed 3
- kg / - oz (000) 116 466
Gold produced
- kg / - oz (000) 80 353
TOTAL
Gold produced
- kg / - oz (000) 1,196 4,982
Gold sold
- kg / - oz (000) 1,193 5,014
Price received
- R / kg / - $ / oz - sold 755 485
Price received normalised for
accelerated settlement of non-
hedge derivatives
- R / kg / - $ / oz - sold 755 702
Total cash costs
- R / kg / - $ / oz - produced 430 444
Total production costs
- R / kg / - $ / oz - produced 561 567
PRODUCTIVITY PER EMPLOYEE
Target
-g / - oz 9.75 10.70
Actual
-g / - oz 9.72 9.94
CAPITAL EXPENDITURE
- Rm / - $m 257 1,201
1 Tonnes (tons) placed on to leach pad.
2 Gold placed / tonnes (tons) placed.
3 Gold placed into leach pad inv entory.
Rounding of figures may result in computational discrepancies.
Group income statement
Quarter Quarter
ended ended
March December
2009 2008
SA Rand million Notes Unaudited Unaudited
Revenue 2 6,824 8,771
Gold income 6,518 8,517
Cost of sales 3 (5,621) (6,928)
Gain (loss) on non-hedge derivatives and
other commodity contracts 4 205 598
Gross profit (loss) 1,102 2,187
Corporate administration and other
expenses (351) (363)
Market development costs (28) (41)
Exploration costs (221) (298)
Other operating (expenses) income 5 (50) 61
Operating special items 6 (60) (15,855)
Operating profit (loss) 391 (14,309)
Interest received 97 108
Exchange gain (loss) 16 8
Fair value adjustment on option component
of convertible bond - 2
Finance costs and unwinding of obligations (252) (225)
Share of equity accounted investments`
profit (loss) 223 (381)
Profit (loss) before taxation 476 (14,797)
Taxation 7 (384) 2,978
Profit (loss) after taxation from
continuing operations 92 (11,819)
Discontinued operations
Profit (loss) from discontinued operations - 4
Profit (loss) for the period 92 (11,815)
Allocated as follows:
Equity shareholders 1 (11,869)
Minority interest 91 54
92 (11,815)
Basic (1) and diluted (2) loss per
ordinary share (cents)
Loss from continuing operations - (3,336)
Profit (loss) from discontinued operations - 1
Loss - (3,335)
Quarter Year
ended ended
March December
2008 2008
Restated
SA Rand million Unaudited Audited
Revenue 6,864 30,790
Gold income 6,657 29,774
Cost of sales (4,588) (22,558)
Gain (loss) on non-hedge derivatives and other
commodity contracts (5,599) (6,277)
Gross profit (loss) (3,530) 939
Corporate administration and other expenses (217) (1,090)
Market development costs (24) (113)
Exploration costs (268) (1,037)
Other operating (expenses) income 32 (29)
Operating special items 82 (15,379)
Operating profit (loss) (3,925) (16,709)
Interest received 80 536
Exchange gain (loss) (10) 33
Fair value adjustment on option component of
convertible bond 170 185
Finance costs and unwinding of obligations (253) (926)
Share of equity accounted investments` profit (loss) 72 (1,177)
Profit (loss) before taxation (3,867) (18,058)
Taxation 148 2,079
Profit (loss) after taxation from continuing
operations (3,719) (15,979)
Discontinued operations
Profit (loss) from discontinued operations (3) 198
Profit (loss) for the period (3,722) (15,781)
Allocated as follows:
Equity shareholders (3,812) (16,105)
Minority interest 90 324
(3,722) (15,781)
Basic (1) and diluted (2) loss per ordinary share
(cents)
Loss from continuing operations (1,350) (5,140)
Profit (loss) from discontinued operations (1) 63
Loss (1,351) (5,077)
(1) Calculated on the basic weighted average number of ordinary shares.
(2) Calculated on the diluted weighted average number of ordinary shares. The
impact of the diluted loss per share is anti-dilutive and therefore equal to
the basic loss per share.
Rounding of figures may result in computational discrepancies.
Group income statement
Quarter Quarter
ended ended
March December
2009 2008
US Dollar million Notes Unaudited Unaudited
Revenue 2 689 884
Gold income 658 858
Cost of sales 3 (568) (698)
Gain (loss) on non-hedge derivatives and
other commodity contracts 4 20 230
Gross profit (loss) 111 390
Corporate administration and other
expenses (35) (37)
Market development costs (3) (4)
Exploration costs (22) (30)
Other operating (expenses) income 5 (5) 6
Operating special items 6 (6) (1,600)
Operating profit (loss) 39 (1,275)
Interest received 10 11
Exchange gain (loss) 1 1
Fair value adjustment on option component
of convertible bond - -
Finance costs and unwinding of obligations (25) (23)
Share of equity accounted investments`
profit (loss) 23 (39)
Profit (loss) before taxation 48 (1,324)
Taxation 7 (39) 313
Profit (loss) after taxation from
continuing operations 9 (1,011)
Discontinued operations
Profit from discontinued operations - -
Profit (loss) for the period 9 (1,011)
Allocated as follows:
Equity shareholders - (1,016)
Minority interest 9 5
9 (1,011)
Basic (1) and diluted (2) loss per
ordinary share (cents)
Loss from continuing operations - (285)
Profit from discontinued operations - -
Loss - (285)
Quarter Year
ended ended
March December
2008 2008
Restated
US Dollar million Unaudited Audited
Revenue 906 3,743
Gold income 879 3,619
Cost of sales (607) (2,728)
Gain (loss) on non-hedge derivatives and other
commodity contracts (372) (297)
Gross profit (loss) (99) 594
Corporate administration and other expenses (29) (131)
Market development costs (3) (13)
Exploration costs (36) (126)
Other operating (expenses) income 4 (6)
Operating special items 11 (1,538)
Operating profit (loss) (152) (1,220)
Interest received 11 66
Exchange gain (loss) (1) 4
Fair value adjustment on option component of
convertible bond 23 25
Finance costs and unwinding of obligations (33) (114)
Share of equity accounted investments` profit (loss) 9 (138)
Profit (loss) before taxation (144) (1,377)
Taxation 14 197
Profit (loss) after taxation from continuing
operations (130) (1,180)
Discontinued operations
Profit from discontinued operations - 25
Profit (loss) for the period (131) (1,155)
Allocated as follows:
Equity shareholders (142) (1,195)
Minority interest 11 40
(131) (1,155)
Basic (1) and diluted (2) loss per ordinary share
(cents)
Loss from continuing operations (50) (385)
Profit from discontinued operations - 8
Loss (50) (377)
(1) Calculated on the basic weighted average number of ordinary shares.
(2) Calculated on the diluted weighted average number of ordinary shares. The
impact of the diluted loss per share is anti-dilutive and therefore equal to
the basic loss per share.
Rounding of figures may result in computational discrepancies.
Statement of comprehensive income
Quarter Quarter
ended ended
March December
2009 2008
SA Rand million Unaudited Unaudited
Profit (loss) for the period 92 (11,815)
Exchange differences on translation of foreign
operations 174 4,115
Net loss on cash flow hedges removed from equity
and reported in gold sales 530 369
Net loss on cash flow hedges (171) (99)
Hedge ineffectiveness 36 67
Realised losses on hedges of capital items (15) (18)
Deferred taxation thereon (91) (58)
289 261
Net gain (loss) on available for sale financial
assets 83 7
Release on available for sale financial assets - (1)
Deferred taxation thereon (3) (11)
80 (5)
Actuarial loss recognised - (171)
Deferred taxation thereon - 58
- (113)
Other comprehensive income for the period net of tax 543 4,258
Total comprehensive income (expense) for the period
net of tax 635 (7,557)
Allocated as follows:
Equity shareholders 538 (7,602)
Minority interest 97 45
635 (7,557)
Quarter Year
ended ended
March December
2008 2008
Restated
SA Rand million Unaudited Audited
Profit (loss) for the period (3,722) (15,781)
Exchange differences on translation of foreign
operations 4,697 8,725
Net loss on cash flow hedges removed from equity
and reported in gold sales 494 1,782
Net loss on cash flow hedges (827) (721)
Hedge ineffectiveness 13 64
Realised losses on hedges of capital items - (18)
Deferred taxation thereon 92 (254)
(228) 853
Net gain (loss) on available for sale financial
assets (73) (74)
Release on available for sale financial assets - (9)
Deferred taxation thereon 17 12
(56) (71)
Actuarial loss recognised - (364)
Deferred taxation thereon (3) 124
(3) (240)
Other comprehensive income for the period net of tax 4,410 9,267
Total comprehensive income (expense) for the period
net of tax 688 (6,514)
Allocated as follows:
Equity shareholders 597 (6,860)
Minority interest 91 346
688 (6,514)
Rounding of figures may result in computational discrepancies.
Statement of comprehensive income
Quarter Quarter
ended ended
March December
2009 2008
US Dollar million Unaudited Unaudited
Profit (loss) for the period 9 (1,011)
Exchange differences on translation of foreign
operations 38 279
Net loss on cash flow hedges removed from equity
and reported in gold sales 54 32
Net loss on cash flow hedges (17) (6)
Hedge ineffectiveness 3 8
Realised losses on hedges of capital items (2) (2)
Deferred taxation thereon (9) (4)
29 28
Net gain (loss) on available for sale financial
assets 8 2
Release on available for sale financial assets - -
Deferred taxation thereon - (1)
8 1
Actuarial loss recognised - (19)
Deferred taxation thereon - 6
- (13)
Other comprehensive income for the period net of tax 75 295
Total comprehensive income (expense) for the period
net of tax 84 (716)
Allocated as follows:
Equity shareholders 74 (720)
Minority interest 10 4
84 (716)
Quarter Year
ended ended
March December
2008 2008
Restated
US Dollar million Unaudited Audited
Profit (loss) for the period (131) (1,155)
Exchange differences on translation of foreign
operations 372 649
Net loss on cash flow hedges removed from equity
and reported in gold sales 66 216
Net loss on cash flow hedges (110) (87)
Hedge ineffectiveness 2 8
Realised losses on hedges of capital items - (2)
Deferred taxation thereon 12 (28)
(30) 107
Net gain (loss) on available for sale financial
assets (9) (9)
Release on available for sale financial assets - (1)
Deferred taxation thereon 2 1
(7) (9)
Actuarial loss recognised - (44)
Deferred taxation thereon - 15
- (29)
Other comprehensive income for the period net of tax 335 718
Total comprehensive income (expense) for the period
net of tax 204 (437)
Allocated as follows:
Equity shareholders 193 (480)
Minority interest 11 43
204 (437)
Rounding of figures may result in computational discrepancies.
Group statement of financial
position
As at As at As at
March December March
2009 2008 2008
Restated
SA Rand million Note Unaudited Audited Unaudited
ASSETS
Non-current assets
Tangible assets 41,404 41,081 52,569
Intangible assets 1,408 1,403 3,494
Investments in associates and
equity accounted joint
ventures 2,897 2,814 2,742
Other investments 704 625 661
Inventories 2,884 2,710 2,361
Trade and other receivables 716 585 489
Deferred taxation 477 475 495
Other non-current assets 36 32 281
50,525 49,725 63,092
Current assets
Inventories 5,877 5,663 4,612
Trade and other receivables 1,827 2,076 1,729
Derivatives 4,744 5,386 3,966
Current portion of other
non-current assets 2 2 2
Cash restricted for use 443 415 423
Cash and cash equivalents 5,874 5,438 3,848
18,767 18,980 14,580
Non-current assets held for
sale 9,104 7,497 131
27,871 26,477 14,711
TOTAL ASSETS 78,396 76,202 77,803
EQUITY AND LIABILITIES
Share capital and premium 10 37,513 37,336 22,448
Retained earnings and other
reserves (13,995) (14,380) (5,787)
Minority interests 893 790 576
Total equity 24,411 23,746 17,237
Non-current liabilities
Borrowings 9,147 8,224 5,700
Environmental rehabilitation
and other provisions 3,934 3,860 3,691
Provision for pension and
post-retirement benefits 1,299 1,293 1,244
Trade, other payables and
deferred income 115 99 89
Derivatives - 235 874
Deferred taxation 6,153 5,838 7,336
20,648 19,549 18,934
Current liabilities
Current portion of borrowings 9,745 10,046 9,974
Trade, other payables and
deferred income 4,683 4,946 4,953
Derivatives 17,376 16,426 25,188
Taxation 803 1,033 1,346
32,607 32,451 41,461
Non-current liabilities held
for sale 731 456 171
33,338 32,907 41,632
Total liabilities 53,986 52,456 60,566
TOTAL EQUITY AND LIABILITIES 78,396 76,202 77,803
Net asset value - cents per
share 6,818 6,643 6,116
Rounding of figures may result in computational discrepancies.
Group statement of financial position
As at As at As at
March December March
2009 2008 2008
Restated
US Dollar million Note Unaudited Audited Unaudited
ASSETS
Non-current assets
Tangible assets 4,320 4,345 6,495
Intangible assets 147 148 432
Investments in associates and
equity accounted joint
ventures 302 298 339
Other investments 73 66 82
Inventories 301 287 292
Trade and other receivables 75 62 60
Deferred taxation 50 50 61
Other non-current assets 4 3 35
5,271 5,259 7,796
Current assets
Inventories 613 599 570
Trade and other receivables 190 220 214
Derivatives 495 570 490
Current portion of other
non-current assets - - -
Cash restricted for use 46 44 52
Cash and cash equivalents 613 575 475
1,957 2,008 1,801
Non-current assets held for
sale 950 793 16
2,907 2,801 1,817
TOTAL ASSETS 8,178 8,060 9,613
EQUITY AND LIABILITIES
Share capital and premium 10 3,914 3,949 2,773
Retained earnings and other
reserves (1,460) (1,521) (715)
Minority interests 93 83 71
Total equity 2,547 2,511 2,129
Non-current liabilities
Borrowings 954 870 704
Environmental rehabilitation
and other provisions 410 408 456
Provision for pension and
post-retirement benefits 135 137 154
Trade, other payables and
deferred income 12 11 11
Derivatives - 25 108
Deferred taxation 642 617 906
2,153 2,068 2,339
Current liabilities
Current portion of borrowings 1,017 1,063 1,232
Trade, other payables and
deferred income 489 524 612
Derivatives 1,813 1,737 3,112
Taxation 84 109 167
3,402 3,433 5,123
Non-current liabilities held
for sale 76 48 21
3,478 3,481 5,144
Total liabilities 5,631 5,549 7,482
TOTAL EQUITY AND LIABILITIES 8,178 8,060 9,613
Net asset value - cents per
share 711 702 755
Rounding of figures may result in computational discrepancies.
Group statement of cashflows
Quarter Quarter
ended ended
March December
2009 2008
SA Rand million Unaudited Unaudited
Cash flows from operating activities
Receipts from customers 6,404 8,772
Payments to suppliers and employees (3,726) (6,210)
Cash generated from operations 2,678 2,562
Cash utilised by discontinued operations - (4)
Dividend received from equity accounted investments 173 257
Taxation paid (423) (127)
Cash utilised for hedge book settlements - (10)
Net cash inflow (outflow) from operating activities 2,427 2,678
Cash flows from investing activities
Capital expenditure (2,387) (2,964)
Proceeds from disposal of tangible assets 17 33
Proceeds from disposal of assets of discontinued
operations - -
Other investments acquired (160) (197)
Proceeds on disposal of associate - -
Associates` loans advanced - -
Associates` loans repaid 1 -
Proceeds from disposal of investments 165 203
(Increase) decrease in cash restricted for use (104) 94
Interest received 98 98
Loans advanced - -
Repayment of loans advanced 1 1
Net cash outflow from investing activities (2,370) (2,733)
Cash flows from financing activities
Proceeds from issue of share capital 114 12
Share issue expenses (4) (11)
Proceeds from borrowings 10,938 1,622
Repayment of borrowings (10,135) (477)
Finance costs paid (410) (266)
Dividends paid (178) -
Net cash inflow from financing activities 325 879
Net increase in cash and cash equivalents 382 824
Translation 54 29
Cash and cash equivalents at beginning of period 5,438 4,585
Net cash and cash equivalents at end of period 5,874 5,438
Cash generated from operations
Profit (loss) before taxation 476 (14,797)
Adjusted for:
Movement on non-hedge derivatives and other
commodity contracts 1,621 (1,046)
Amortisation of tangible assets 1,261 1,387
Finance costs and unwinding of obligations 252 225
Environmental, rehabilitation and other expenditure 20 (72)
Operating special items 60 15,855
Amortisation of intangible assets 6 9
Deferred stripping (313) (140)
Fair value adjustment on option components of
convertible bond - (2)
Interest receivable (97) (108)
Share of equity accounted investments` (profit) loss (223) 381
Other non-cash movements 80 363
Movements in working capital (464) 507
2,678 2,562
Movements in working capital
Increase in inventories (440) (1,162)
(Increase) decrease in trade and other receivables (337) 135
Increase in trade and other payables 313 1,533
(464) 507
Quarter Year
ended ended
March December
2008 2008
Restated
SA Rand million Unaudited Audited
Cash flows from operating activities
Receipts from customers 6,536 30,117
Payments to suppliers and employees (4,674) (24,429)
Cash generated from operations 1,863 5,688
Cash utilised by discontinued operations (1) (11)
Dividend received from equity accounted investments - 739
Taxation paid (343) (1,029)
Cash utilised for hedge book settlements - (8,514)
Net cash inflow (outflow) from operating activities 1,519 (3,127)
Cash flows from investing activities
Capital expenditure (1,918) (9,846)
Proceeds from disposal of tangible assets 222 301
Proceeds from disposal of assets of discontinued
operations - 79
Other investments acquired (266) (769)
Proceeds on disposal of associate - 382
Associates` loans advanced - (38)
Associates` loans repaid 30 33
Proceeds from disposal of investments 207 729
(Increase) decrease in cash restricted for use (48) (49)
Interest received 86 538
Loans advanced (3) (3)
Repayment of loans advanced 1 3
Net cash outflow from investing activities (1,689) (8,640)
Cash flows from financing activities
Proceeds from issue of share capital 65 13,592
Share issue expenses - (421)
Proceeds from borrowings 1,204 7,034
Repayment of borrowings (154) (5,066)
Finance costs paid (250) (788)
Dividends paid (152) (455)
Net cash inflow from financing activities 713 13,896
Net increase in cash and cash equivalents 543 2,129
Translation 58 63
Cash and cash equivalents at beginning of period 3,246 3,246
Net cash and cash equivalents at end of period 3,848 5,438
Cash generated from operations
Profit (loss) before taxation (3,867) (18,058)
Adjusted for:
Movement on non-hedge derivatives and other
commodity contracts 5,280 3,169
Amortisation of tangible assets 1,020 4,620
Finance costs and unwinding of obligations 253 926
Environmental, rehabilitation and other expenditure 87 38
Operating special items (82) 15,379
Amortisation of intangible assets 4 21
Deferred stripping (190) (418)
Fair value adjustment on option components of
convertible bond (170) (185)
Interest receivable (80) (536)
Share of equity accounted investments` (profit) loss (72) 1,177
Other non-cash movements (20) 776
Movements in working capital (300) (1,221)
1,863 5,688
Movements in working capital
Increase in inventories (1,439) (3,588)
(Increase) decrease in trade and other receivables (386) (618)
Increase in trade and other payables 1,525 2,985
(300) (1,221)
Rounding of figures may result in computational discrepancies.
Group statement of cashflows
Quarter Quarter
ended ended
March December
2009 2008
US Dollar million Unaudited Unaudited
Cash flows from operating activities
Receipts from customers 646 892
Payments to suppliers and employees (378) (681)
Cash generated from operations 268 210
Cash utilised by discontinued operations - -
Dividend received from equity accounted investments 18 20
Taxation paid (43) (7)
Cash utilised for hedge book settlements - (1)
Net cash inflow (outflow) from operating activities 243 221
Cash flows from investing activities
Capital expenditure (241) (298)
Proceeds from disposal of tangible assets 2 3
Proceeds from disposal of assets of discontinued
operations - -
Other investments acquired (16) (19)
Proceeds on disposal of associate - (3)
Associates` loans advanced - -
Associates` loans repaid - -
Proceeds from disposal of investments 17 20
(Increase) decrease in cash restricted for use (10) 14
Interest received 10 10
Loans advanced - -
Repayment of loans advanced - -
Net cash outflow from investing activities (239) (274)
Cash flows from financing activities
Proceeds from issue of share capital 12 1
Share issue expenses - -
Proceeds from borrowings 1,105 149
Repayment of borrowings (1,024) (17)
Finance costs paid (41) (25)
Dividends paid (18) -
Net cash inflow from financing activities 33 108
Net increase in cash and cash equivalents 37 55
Translation 1 (35)
Cash and cash equivalents at beginning of period 575 555
Net cash and cash equivalents at end of period 613 575
Cash generated from operations
Profit (loss) before taxation 48 (1,324)
Adjusted for:
Movement on non-hedge derivatives and other
commodity contracts 164 (276)
Amortisation of tangible assets 127 140
Finance costs and unwinding of obligations 25 23
Environmental, rehabilitation and other expenditure 2 (8)
Operating special items 6 1,600
Amortisation of intangible assets 1 1
Deferred stripping (32) (14)
Fair value adjustment on option components of
convertible bond - -
Interest receivable (10) (11)
Share of equity accounted investments` (profit) loss (23) 39
Other non-cash movements 8 36
Movements in working capital (49) 5
268 210
Movements in working capital
Increase in inventories (34) (1)
(Increase) decrease in trade and other receivables (32) 47
Increase (decrease) in trade and other payables 17 (40)
(49) 5
Quarter Year
ended ended
March December
2008 2008
Restated
US Dollar million Unaudited Audited
Cash flows from operating activities
Receipts from customers 871 3,672
Payments to suppliers and employees (656) (3,040)
Cash generated from operations 215 632
Cash utilised by discontinued operations - (1)
Dividend received from equity accounted investments - 78
Taxation paid (46) (125)
Cash utilised for hedge book settlements - (1,113)
Net cash inflow (outflow) from operating activities 169 (529)
Cash flows from investing activities
Capital expenditure (256) (1,194)
Proceeds from disposal of tangible assets 30 39
Proceeds from disposal of assets of discontinued
operations - 10
Other investments acquired (35) (93)
Proceeds on disposal of associate - 48
Associates` loans advanced - (4)
Associates` loans repaid 4 4
Proceeds from disposal of investments 28 88
(Increase) decrease in cash restricted for use (6) (6)
Interest received 11 67
Loans advanced - -
Repayment of loans advanced - -
Net cash outflow from investing activities (225) (1,041)
Cash flows from financing activities
Proceeds from issue of share capital 9 1,722
Share issue expenses - (54)
Proceeds from borrowings 160 853
Repayment of borrowings (20) (614)
Finance costs paid (33) (93)
Dividends paid (19) (58)
Net cash inflow from financing activities 96 1,756
Net increase in cash and cash equivalents 40 186
Translation (42) (88)
Cash and cash equivalents at beginning of period 477 477
Net cash and cash equivalents at end of period 475 575
Cash generated from operations
Profit (loss) before taxation (144) (1,377)
Adjusted for:
Movement on non-hedge derivatives and other
commodity contracts 328 (88)
Amortisation of tangible assets 136 560
Finance costs and unwinding of obligations 33 114
Environmental, rehabilitation and other expenditure 12 6
Operating special items (11) 1,538
Amortisation of intangible assets - 2
Deferred stripping (23) (51)
Fair value adjustment on option components of
convertible bond (23) (25)
Interest receivable (11) (66)
Share of equity accounted investments` (profit) loss (9) 138
Other non-cash movements (2) 87
Movements in working capital (70) (206)
215 632
Movements in working capital
Increase in inventories (48) (151)
(Increase) decrease in trade and other receivables (16) (9)
Increase (decrease) in trade and other payables (6) (46)
(70) (206)
Rounding of figures may result in computational discrepancies.
Group statement of changes in equity
Cash
Share Other flow
Capital & capital Retained hedge
SA Rand million Premium reserves earnings reserve
Balance at December 2007 22,371 701 (5,524) (1,633)
(Loss) profit for the year (3,812)
Comprehensive (expense)
income (229)
Total comprehensive
(expense) income - - (3,812) (229)
Shares issued 77
Share-based payment for
share awards 73
Dividends paid (148)
Dividends of subsidiaries
Transfers to foreign
currency translation
reserve (12)
Translation - 3 (146)
Balance at March 2008 22,448 777 (9,496) (2,008)
Balance at December 2008 37,336 809 (22,879) (1,008)
Profit for the year 1
Comprehensive income 283
Total comprehensive income - - 1 283
Shares issued 177
Share-based payment for
share awards 39
Dividends paid (178)
Translation - (4) (7)
Balance at March 2009 37,513 844 (23,056) (732)
US Dollar million
Balance at December 2007 3,285 103 (1,020) (240)
(Loss) profit for the year (142)
Comprehensive (expense)
income (30)
Total comprehensive
(expense) income - - (142) (30)
Shares issued 9
Share-based payment for
share awards 10
Dividends paid (18)
Dividends of subsidiaries
Transfers to foreign
currency translation
reserve (2)
Translation (521) (17) 22
Balance at March 2008 2,773 96 (1,182) (248)
Balance at December 2008 3,949 86 (2,368) (107)
Profit for the year -
Comprehensive income 28
Total comprehensive income - - - 28
Shares issued 17
Share-based payment for
share awards 4
Dividends paid (18)
Translation (52) (3) 3
Balance at March 2009 3,914 87 (2,386) (76)
Available Foreign
for Actuarial currency
sale (losses) translation
SA Rand million reserve gains reserve
Balance at December 2007 59 (108) 338
(Loss) profit for the year
Comprehensive (expense) income (56) (3) 4,697
Total comprehensive (expense) income (56) (3) 4,697
Shares issued
Share-based payment for share awards
Dividends paid
Dividends of subsidiaries
Transfers to foreign currency
translation reserve 12
Translation 1
Balance at March 2008 4 (111) 5,047
Balance at December 2008 (18) (347) 9,063
Profit for the year
Comprehensive income 80 - 174
Total comprehensive income 80 - 174
Shares issued
Share-based payment for share awards
Dividends paid
Translation (3) -
Balance at March 2009 59 (347) 9,237
US Dollar million
Balance at December 2007 9 (16) 258
(Loss) profit for the year
Comprehensive (expense) income (7) - 372
Total comprehensive (expense) income (7) - 372
Shares issued
Share-based payment for share awards
Dividends paid
Dividends of subsidiaries
Transfers to foreign currency
translation reserve 2
Translation (2) 3
Balance at March 2008 - (13) 632
Balance at December 2008 (2) (37) 907
Profit for the year
Comprehensive income 8 - 38
Total comprehensive income 8 - 38
Shares issued
Share-based payment for share awards
Dividends paid
Translation - 1
Balance at March 2009 6 (36) 945
Minority Total
SA Rand million Total interests equity
Balance at December 2007 16,204 429 16,633
(Loss) profit for the year (3,812) 90 (3,722)
Comprehensive (expense) income 4,409 1 4,410
Total comprehensive (expense) income 597 91 688
Shares issued 77 77
Share-based payment for share awards 73 73
Dividends paid (148) (148)
Dividends of subsidiaries - (4) (4)
Transfers to foreign currency translation
reserve - -
Translation (142) 60 (82)
Balance at March 2008 16,661 576 17,237
Balance at December 2008 22,956 790 23,746
Profit for the year 1 91 92
Comprehensive income 537 6 543
Total comprehensive income 538 97 635
Shares issued 177 177
Share-based payment for share awards 39 39
Dividends paid (178) (178)
Translation (14) 6 (8)
Balance at March 2009 23,518 893 24,411
US Dollar million
Balance at December 2007 2,379 63 2,442
(Loss) profit for the year (142) 11 (131)
Comprehensive (expense) income 335 - 335
Total comprehensive (expense) income 193 11 204
Shares issued 9 9
Share-based payment for share awards 10 10
Dividends paid (18) (18)
Dividends of subsidiaries - (1) (1)
Transfers to foreign currency translation
reserve - -
Translation (515) (2) (517)
Balance at March 2008 2,058 71 2,129
Balance at December 2008 2,428 83 2,511
Profit for the year - 9 9
Comprehensive income 74 1 75
Total comprehensive income 74 10 84
Shares issued 17 17
Share-based payment for share awards 4 4
Dividends paid (18) (18)
Translation (51) (51)
Balance at March 2009 2,454 93 2,547
Rounding of figures may result in computational discrepancies.
Notes
for the quarter ended 31 March 2009
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 in note 15, the group`s accounting policies used in the
preparation of these financial statements are consistent with those used in the
annual financial statements for the year ended 31 December 2008 and revised
International Financial Reporting Standards (IFRS) which are effective 1
January 2009, where applicable, with the only significant changes arising from
IAS1 (revised) - "Presentation of Financial Statements" and IFRS8 "Operating
Segments". As a result of the revision of IAS1, a Statement of Comprehensive
Income, which discloses non owner changes in equity, and a Statement of Changes
in Equity are presented. The effects of the adoption of IFRS8 are disclosed in
Segmental Reporting.
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 ended 31 March 2009.
2. Revenue
Quarter ended Year ended
Mar Dec Mar Dec
2009 2008 2008 2008
Restated
Unaudited Unaudited Unaudited Audited
SA Rand million
Gold income 6,518 8,517 6,657 29,774
By-products (note 3) 208 147 127 480
Interest received 97 108 80 536
6,824 8,771 6,864 30,790
Quarter ended Year ended
Mar Dec Mar Dec
2009 2008 2008 2008
Restated
Unaudited Unaudited Unaudited Audited
US Dollar million
Gold income 658 858 879 3,619
By-products (note 3) 21 15 16 58
Interest received 10 11 11 66
689 884 906 3,743
3. Cost of sales
Quarter ended Year ended
Mar Dec Mar Dec
2009 2008 2008 2008
Restated
Unaudited Unaudited Unaudited Audited
SA Rand million
Cash operating costs (4,628) (4,948) (3,513) (16,865)
By-products revenue
(note 2) 208 147 127 480
By-products cash
operating costs (96) (65) (78) (286)
(4,516) (4,866) (3,464) (16,671)
Other cash costs (207) (196) (205) (734)
Total cash costs (4,723) (5,062) (3,669) (17,405)
Retrenchment costs (14) (16) (26) (72)
Rehabilitation and other
non-cash costs (59) 2 (103) (218)
Production costs (4,796) (5,076) (3,799) (17,695)
Amortisation of tangible
assets (1,261) (1,387) (1,020) (4,620)
Amortisation of
intangible assets (6) (9) (4) (21)
Total production costs (6,063) (6,472) (4,823) (22,336)
Inventory change 442 (456) 235 (222)
(5,621) (6,928) (4,588) (22,558)
Quarter ended Year ended
Mar Dec Mar Dec
2009 2008 2008 2008
Restated
Unaudited Unaudited Unaudited Audited
US Dollar million
Cash operating costs (467) (498) (465) (2,045)
By-products revenue (note 2) 21 15 16 58
By-products cash
operating costs (10) (7) (10) (36)
(456) (490) (459) (2,023)
Other cash costs (21) (20) (27) (90)
Total cash costs (477) (510) (486) (2,113)
Retrenchment costs (1) (2) (3) (9)
Rehabilitation and other
non-cash costs (6) - (13) (28)
Production costs (484) (511) (503) (2,150)
Amortisation of tangible
assets (127) (140) (136) (560)
Amortisation of
intangible assets (1) (1) - (2)
Total production costs (612) (652) (639) (2,712)
Inventory change 44 (47) 32 (16)
(568) (698) (607) (2,728)
Rounding of figures may result in computational discrepancies.
4. Gain (loss) on non-hedge derivatives and other commodity contracts
Quarter ended Year ended
Mar Dec Mar Dec
2009 2008 2008 2008
Restated
Unaudited Unaudited Unaudited Audited
SA Rand million
Gain (loss) on realised
non-hedge derivatives 1,867 (348) (158) (1,275)
Realised loss on other
commodity contracts - - - (253)
Loss on accelerated
settlement of non-hedge
derivatives - - - (8,634)
(Loss) gain on unrealised
non-hedge derivatives (1,662) 898 (5,464) 3,774
Unrealised gain on other
commodity physical
borrowings - 48 3 74
Provision reversed for
gain on future deliveries
of other commodities - - 19 37
205 598 (5,599) (6,277)
Quarter ended Year ended
Mar Dec Mar Dec
2009 2008 2008 2008
Restated
Unaudited Unaudited Unaudited Audited
US Dollar million
Gain (loss) on realised
non-hedge
derivatives 189 (35) (22) (155)
Realised loss on other
commodity contracts - - - (32)
Loss on accelerated
settlement of non-hedge
derivatives - - - (1,088)
(Loss) gain on unrealised
non-hedge
derivatives (168) 260 (353) 965
Unrealised gain on other
commodity physical
borrowings - 5 1 8
Provision reversed for
gain on future deliveries
of other commodities - - 3 5
20 230 (372) (297)
5. Other operating (expenses) income
Quarter ended Year ended
Mar Dec Mar Dec
2009 2008 2008 2008
Restated
Unaudited Unaudited Unaudited Audited
SA Rand million
Pension and medical
defined benefit
provisions (24) 80 (24) 8
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 (26) (20) 60 (37)
Miscellaneous - 1 (4) -
(50) 61 32 (29)
Quarter ended Year ended
Mar Dec Mar Dec
2009 2008 2008 2008
Restated
Unaudited Unaudited Unaudited Audited
US Dollar million
Pension and medical
defined benefit
provisions (2) 8 (3) (2)
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 (3) (2) 8 (4)
Miscellaneous - - (1) -
(5) 6 4 (6)
6. Operating special items
Quarter ended Year ended
Mar Dec Mar Dec
2009 2008 2008 2008
Restated
Unaudited Unaudited Unaudited Audited
SA Rand million
(Under provision)
reimbursement of
indirect tax expenses (3) 148 - 198
Siguiri royalty payment
calculation dispute
with the Guinean
Administration - (26) - (26)
ESOP and BEE costs
resulting from rights offer - - - (76)
Contractor termination
costs at Iduapriem - (10) - (10)
Impairment net of
reversals of tangible
assets (note 8) - (14,786) (3) (14,792)
Impairment of goodwill (note 8) - (1,080) - (1,080)
Recovery of exploration costs - - - 35
Provision for bad debt -
Pamodzi Gold (63) - - -
Profit (loss) on disposal
and abandonment of land,
mineral rights, tangible
assets and exploration
properties (note 8) 6 (55) 85 381
Impairment of investments
(note 8) - (42) - (42)
(Loss) profit on disposal
of investment in Nufcor
International Limited (note 8) - (4) - 14
Nufcor Uranium Trust
contributions by other
members (note 8) - - - 19
(60) (15,855) 82 (15,379)
Quarter ended Year ended
Mar Dec Mar Dec
2009 2008 2008 2008
Restated
Unaudited Unaudited Unaudited Audited
US Dollar million
(Under provision)
reimbursement of indirect
tax expenses - 15 - 22
Siguiri royalty payment
calculation dispute
with the Guinean
Administration - (3) - (3)
ESOP and BEE costs
resulting from rights offer - - - (9)
Contractor termination
costs at Iduapriem - (1) - (1)
Impairment net of
reversals of tangible assets
(note 8) - (1,492) - (1,493)
Impairment of goodwill (note 8) - (109) - (109)
Recovery of exploration costs - - - 4
Provision for bad debt -
Pamodzi Gold (6) - - -
Profit (loss) on disposal
and abandonment of
land, mineral rights,
tangible assets and
exploration properties (note 8) 1 (4) 11 52
Impairment of investments
(note 8) - (6) - (6)
(Loss) profit on disposal
of investment in
Nufcor International
Limited (note 8) - - - 2
Nufcor Uranium Trust
contributions by other
members (note 8) - - - 3
(6) (1,600) 11 (1,538)
Rounding of figures may result in computational discrepancies.
7. Taxation
Quarter ended Year ended
Mar Dec Mar Dec
2009 2008 2008 2008
Restated
Unaudited Unaudited Unaudited Audited
SA Rand million
South African taxation
Mining tax - - (252) -
Non-mining tax (30) (18) (41) (85)
(Under) over provision
prior year (16) 18 (22) (42)
Deferred taxation
Temporary differences (322) (446) (31) 161
Unrealised non-hedge
derivatives and other
commodity contracts 168 (98) 712 (841)
Change in estimated
deferred tax rate - (62) - (62)
Change in statutory tax rate - 1 70 70
(200) (605) 434 (799)
Foreign taxation
Normal taxation (137) (231) (178) (651)
(Under) over provision
prior year (11) - 36 41
Deferred taxation
Temporary differences (48) 3,970 (138) 3,747
Unrealised non-hedge
derivatives and other
commodity contracts 13 (155) (6) (259)
(183) 3,583 (287) 2,878
Total taxation (384) 2,978 148 2,079
Quarter ended Year ended
Mar Dec Mar Dec
2009 2008 2008 2008
Restated
Unaudited Unaudited Unaudited Audited
US Dollar million
South African taxation
Mining tax - - (32) -
Non-mining tax (3) (2) (6) (12)
(Under) over provision
prior year (2) 2 (3) (6)
Deferred taxation
Temporary differences (33) (45) (3) 30
Unrealised non-hedge
derivatives and other
commodity contracts 17 1 88 (89)
Change in estimated
deferred tax rate - (6) - (6)
Change in statutory tax rate - - 9 9
(20) (50) 52 (74)
Foreign taxation
Normal taxation (14) (24) (24) (79)
(Under) over provision
prior year (1) - 5 5
Deferred taxation
Temporary differences (5) 401 (18) 372
Unrealised non-hedge
derivatives and other
commodity contracts 1 (15) (1) (27)
(18) 363 (38) 271
Total taxation (39) 313 14 197
8. Headline earnings (loss)
Quarter ended Year ended
Mar Dec Mar Dec
2009 2008 2008 2008
Restated
Unaudited Unaudited Unaudited Audited
SA Rand million
The profit (loss)
attributable to equity
shareholders
has been adjusted by the
following to arrive at
headline earnings (loss):
Profit (loss)
attributable to equity
shareholders 1 (11,869) (3,812) (16,105)
Impairment net of
reversals of tangible
assets (note 6) - 14,786 3 14,792
Impairment of goodwill (note 6) - 1,080 - 1,080
Profit on disposal and
abandonment of assets (note 6) (6) 55 (85) (400)
Impairment of
investments (note 6) - 42 - 42
Loss (profit) on
disposal of investment
in associate (note 6) - 4 - (14)
Profit on disposal of
discontinued assets - - - (218)
Impairment of investment
in associates - 347 1 389
Loss (profit) on
disposal of assets in associate 1 - - (30)
Taxation on items above
- current portion 4 3 2 10
Taxation on items above
- deferred portion (1) (3,933) 11 (3,915)
Discontinued operations
taxation on items above - - - (6)
Headline earnings (loss) - 516 (3,880) (4,375)
Cents per share (1)
Headline earnings (loss) - 145 (1,376) (1,379)
Quarter ended Year ended
Mar Dec Mar Dec
2008 2008 2008 2008
Restated
Unaudited Unaudited Unaudited Audited
US Dollar million
The profit (loss)
attributable to equity
shareholders has been
adjusted by the following
to arrive at headline
earnings (loss):
Profit (loss)
attributable to equity
shareholders - (1,016) (142) (1,195)
Impairment net of
reversals of tangible
assets (note 6) - 1,492 - 1,493
Impairment of goodwill (note 6) - 109 - 109
Profit on disposal and
abandonment of assets (note 6) (1) 4 (11) (55)
Impairment of investments
(note 6) - 6 - 6
Loss (profit) on disposal
of investment in
associate (note 6) - - - (2)
Profit on disposal of
discontinued assets - - - (27)
Impairment of investment
in associates - 35 - 39
Loss (profit) on disposal
of assets in associate - - - (3)
Taxation on items above -
current portion 1 - - 1
Taxation on items above -
deferred portion - (397) 1 (395)
Discontinued operations
taxation on items above - - - (1)
Headline earnings (loss) - 234 (151) (30)
Cents per share (1)
Headline earnings (loss) - 66 (54) (9)
(1) Calculated on the basic weighted average number of ordinary shares.
Rounding of figures may result in computational discrepancies.
9. Number of shares
Quarter ended
Mar Dec
2009 2008
Unaudited Unaudited
Authorised number of shares:
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 number of shares:
Ordinary shares in issue 354,135,912 353,483,410
E ordinary shares in issue 3,927,894 3,966,941
Total ordinary number of shares: 358,063,806 357,450,351
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 353,635,884 351,517,689
E ordinary shares 3,940,464 3,980,034
Fully vested options 805,303 440,430
Weighted average number of shares 358,381,651 355,938,153
Dilutive potential of share options - -
Diluted number of ordinary shares (1) 358,381,651 355,938,153
Year ended
Mar Dec
2008 2008
Unaudited Audited
Authorised number of shares:
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 number of shares:
Ordinary shares in issue 277,745,007 353,483,410
E ordinary shares in issue 4,104,635 3,966,941
Total ordinary number of shares: 281,849,642 357,450,351
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 277,658,759 312,610,124
E ordinary shares 4,122,800 4,046,364
Fully vested options 280,789 547,460
Weighted average number of shares 282,062,348 317,203,948
Dilutive potential of share options - -
Diluted number of ordinary shares (1) 282,062,348 317,203,948
(1) The basic and diluted number of ordinary shares are the same as the effects
of shares for performance related options are anti-dilutive.
10. Share capital and premium
As at
Mar Dec Mar
2009 2008 2008
Restated
Unaudited Audited Unaudited
SA Rand million
Balance at beginning of period 38,246 23,322 23,322
Ordinary shares issued 174 14,946 73
E ordinary shares cancelled (4) (22) (5)
Translation - - -
Sub-total 38,416 38,246 23,391
Redeemable preference shares
held within the group (312) (312) (312)
Ordinary shares held within the
group (270) (273) (288)
E ordinary shares held within
group (321) (325) (343)
Balance at end of period 37,513 37,336 22,448
As at
Mar Dec Mar
2009 2008 2008
Restated
Unaudited Audited Unaudited
US Dollar million
Balance at beginning of period 4,045 3,425 3,425
Ordinary shares issued 18 1,875 10
E ordinary shares cancelled (1) (2) (1)
Translation (54) (1,253) (544)
Sub-total 4,008 4,045 2,890
Redeemable preference shares
held within the group (33) (33) (39)
Ordinary shares held within
the group (28) (29) (36)
E ordinary shares held within
group (33) (34) (42)
Balance at end of period 3,914 3,949 2,773
11. Exchange rates
Mar Dec Mar
2009 2008 2008
Unaudited Unaudited Unaudited
ZAR/USD average for the year to date 9.90 8.25 7.52
ZAR/USD average for the quarter 9.90 9.92 7.52
ZAR/USD closing 9.59 9.46 8.09
ZAR/AUD average for the year to date 6.58 6.93 6.84
ZAR/AUD average for the quarter 6.58 6.67 6.84
ZAR/AUD closing 6.60 6.57 7.40
BRL/USD average for the year to date 2.31 1.84 1.74
BRL/USD average for the quarter 2.31 2.28 1.74
BRL/USD closing 2.33 2.34 1.74
ARS/USD average for the year to date 3.54 3.16 3.15
ARS/USD average for the quarter 3.54 3.33 3.15
ARS/USD closing 3.71 3.45 3.17
Rounding of figures may result in computational discrepancies.
12. Capital commitments
Mar Dec Mar
2009 2008 2008
Unaudited Audited Unaudited
SA Rand million
Orders placed and outstanding
on capital contracts at the
prevailing rate of exchange (1) 1,721 775 3,697
Mar Dec Mar
2009 2008 2008
Unaudited Audited Unaudited
US Dollar million
Orders placed and outstanding
on capital contracts at the
prevailing rate of exchange (1) 180 82 457
(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.
13. Contingent liabilities
AngloGold Ashanti`s material contingent liabilities at 31 March 2009 are
detailed below:
Groundwater pollution - South Africa - AngloGold Ashanti has identified a
number of groundwater pollution sites at its operations in South Africa and has
investigated a number of different technologies and methodologies that could
possibly be used to remediate the pollution plumes. Numerous scientific,
technical and legal reports have been produced and remediation of the polluted
soil and groundwater is the subject of continued research. Subject to the
technology being developed as a proven 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
in South Africa. The Company is involved in task teams and other structures to
find long-term sustainable solutions for this risk, together with industry
partners and government. As there is too little information for the accurate
estimate of a liability, 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, resulting from 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 being conducted but no reliable estimate can be made for the
obligation.
Provision of surety - South Africa - AngloGold Ashanti has provided sureties in
favour of a lender on a gold loan facility with its affiliate Oro Africa (Pty)
Ltd and one of its subsidiaries to a maximum value of R100m ($10m). 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, including one assessment 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 $35m. 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 appealing the dismissal of the case. The company`s
attributable share of the assessment is approximately $6m.
Tax Disputes - Brazil - Morro Velho, AngloGold Ashanti Brasil Mineracao,
Mineracao Serra Grande and Sio Bento Mineracao are involved in disputes with
tax authorities. These disputes involve federal tax assessments including
income tax, royalties, social contributions and annual property tax based on
ownership of properties outside of urban perimeters (ITR). The amount involved
is approximately $14m.
14. Concentration of risk
There is a concentration of risk in respect of reimbursable value added tax and
fuel duties from the Malian government:
Reimbursable value added tax due from the Malian government amounts to an
attributable $25m at 31 March 2009 (31 December 2008: attributable $27m). The
last audited value added tax return was for the period ended 30 June 2008 and
at the balance sheet date an attributable $22m was audited and $3m is still
subject to audit.
Reimbursable fuel duties from the Malian government amounts to an
attributable $4m at 31 March 2009 (31 December 2008: attributable $5m). 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 $4m is
still subject to authorisation by the authorities. With effect from February
2006 fuel duties are no longer payable to the Malian government.
The government of Mali is a shareholder in all the Malian entities. Management
of Sadiola and Yatela have entered into a protocol with the Government of Mali
that provides for the repayment of the outstanding audited amounts due to
Sadiola and Yatela. The amounts outstanding at Sadiola and Yatela have been
discounted at 18% based on the provisions of the protocol. The amounts
outstanding at Morila have been discounted to their present value at a rate of
6.0%.
Post quarter-end Sadiola received an amount of attributable $11m from the
Malian government.
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 March 2009 (31 December 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 outstanding amounts at Morila have been discounted to their
present value at a rate of 7.8%.
Reimbursable fuel duties from the Tanzanian government amounts to $39m at 31
March 2009 (31 December 2008: $37m). 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 $33m have been audited and lodged with the Customs and
Excise authorities, whilst claims for refund of $6m have not yet been lodged.
The outstanding amounts have been discounted to their present value at a rate
of 7.8%.
15. Change in account policy
Effective 1 January 2008, the group changed its accounting policy for the
accounting of jointly controlled entities. In terms of IAS31 "Interests in
Joint Ventures" the group previously proportionately consolidated jointly
controlled entities. During 2008 the group decided to change its accounting
policy to account for these entities using the equity method, the alternative
treatment permitted by IFRS. Management has concluded that the change in
accounting policy will result in more reliable and relevant information and is
in accordance with international trends in accounting. Comparative information
is this report has been restated in order to reflect the adoption of the
revised accounting policy for the accounting of jointly controlled entities.
16. Announcements
On 28 January 2009, AngloGold Ashanti announced that it had agreed to sell to
Newmont Mining Corporation, its 33.33% joint venture interest in the Boddington
Gold Mine for an aggregate consideration of up to approximately $1.1 billion,
subject to the fulfilment of certain conditions.
On 17 February 2009, AngloGold Ashanti entered into an agreement with Simmer
and Jack Mines Limited, to sell its Tau Lekoa Mine and the adjacent project
areas. The effective date of the sale will occur on the later of 1 January 2010
or the first day in the calendar month following the fulfilment of all
conditions precedent.
On 9 April 2009, AngloGold Ashanti announced changes to its board. Mr R E
Bannerman and Mr J H Mensah are to retire from the board at the close of the
annual general meeting to be held on 15 May 2009, while Prof W L Nkuhlu
resigned from the board on 5 May 2009, following the filing with the United
States Securities and Exchange Commission of its 2008 annual report on Form
20-F.
17. Dividend
Final Dividend No. 105 of 50 South African cents of approximately 3.518 UK
pence or approximately 6.565 cedis per share was paid to registered
shareholders on 13 March 2009, while a dividend of 1.546 Australian cents per
CHESS Depositary Interest (CDI) was paid on the same day. On 16 March 2009, a
dividend of 0.06565 cedis per Ghanaian Depositary Share (GhDS) was paid to
holders thereof. Each CDI represents one-fifth of an ordinary share, and 100
GhDSs represents one ordinary share. A dividend was paid to holders of American
Depositary Receipts (ADRs) on 23 March 2009 at a rate of 4.99990 US cents per
American Depositary share (ADS). Each ADS represents one ordinary share.
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 were paid on 13 March
2009.
18. Detailed report
This report contains a summary of the results of AngloGold Ashanti`s
operations. A detailed report appears on the internet and is obtainable in
printed format from the investor relations contacts, whose details, along with
the website address, appear at the end of this report.
By order of the Board
R P EDEY M CUTIFANI
Chairman Chief Executive Officer
13 May 2009
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
(PO 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 (1)
J H Mensah (1)
W A Nairn
Prof W L Nkuhlu
S M Pityana
* British # American ## Ghanaian
Australian
(1) Retires from the board on 15 May 2009
Officers
Company Secretary: Ms L Eatwell
Investor Relations Contacts
South Africa
Sicelo Ntuli
Telephone: +27 11 637 6339
Fax: +27 11 637 6400
E-mail: sntuli@AngloGoldAshanti.com
United States
Stewart Bailey
Telephone: +1 646 717-3978
E-mail: sbailey@AngloGoldAshanti.com
General E-mail enquiries
investors@AngloGoldAshanti.com
AngloGold Ashanti website
http://www.AngloGoldAshanti.com
Company secretarial E-mail
Companysecretary@AngoGoldAshanti.com
AngloGold Ashanti posts information that is important to investors on the main
page of its website at www.anglogoldashanti.com and under the "Investors" tab
on the main page. This information is updated regularly.
Investors should visit this website to obtain important information about
AngloGold Ashanti.
Share Registrars
South Africa
Computershare Investor Services (Pty)
Limited
Ground Floor, 70 Marshall Street
Johannesburg 2001
(PO Box 61051, Marshalltown 2107)
South Africa
Telephone: 0861 100 950 (in SA)
Fax: +27 11 688 5218
web.queries@computershare.co.za
United Kingdom
Computershare Investor Services PLC
PO Box 82
The Pavilions
Bridgwater Road
Bristol BS99 7NH
England
Telephone: +44 870 702 0000
Fax: +44 870 703 6119
Australia
Computershare Investor Services Pty
Limited
Level 2, 45 St George`s Terrace
Perth, WA 6000
(GPO Box D182 Perth, WA 6840)
Australia
Telephone: +61 8 9323 2000
Telephone: 1300 55 2949 (in Australia)
Fax: +61 8 9323 2033
Ghana
NTHC Limited
Martco House
Off Kwame Nkrumah Avenue
PO Box K1A 9563 Airport
Accra
Ghana
Telephone: +233 21 229664
Fax: +233 21 229975
ADR Depositary
The Bank of New York Mellon ("BoNY")
BNY Shareowner Services
PO Box 358016
Pittsburgh, PA 15252-8016
United States of America
Telephone: +1 800 522 6645 (Toll free
in USA) or +1 201 680 6578 (outside
USA)
E-mail: shrrelations@mellon.com
Website:
www.bnymellon.com.com\shareowner
Global 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 made in this communication, including, without limitation,
those concerning AngloGold Ashanti`s strategy to reduce its gold hedging
position including the extent and effects of the 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 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 for the year ended 31 December 2008,
which was distributed to shareholders on 27 March 2009 and the company`s annual
report on Form 20-F, filed with the Securities and Exchange Commission in the
United States on May 5, 2009 and amended on May 6, 2009. AngloGold Ashanti
undertakes no obligation to update publicly or release any revisions to these
forward-looking statements to reflect events or circumstances after today`s
date or to reflect the occurrence of unanticipated events. 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. AngloGold Ashanti posts information that is important to investors on
the main page of its website at www.anglgoldashanti.com and under the
"Investors" tab on the main page. This information is updated regularly.
Investors should visit this website to obtain important information about
AngloGold Ashanti.
Date: 15/05/2009 07:58:24 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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