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ANG
ANANO
ANG - Anglogold Ashanti - Report to Shareholders for the Quarter and Six Months
Ended 30 June 2009
ANGLOGOLD ASHANTI LIMITED
Registration No. 1944/017354/06
Incorporated in the Republic of South Africa
Share codes:
JSE: ANG
LSE: AGD
NYSE: AU
ASX: AGG
GhSE (Shares): AGA
GhSE (GhDS): AAD
Euronext Paris: VA
Euronext Brussels: ANG
ISIN: ZAE000043485
Report to shareholders for the quarter and six months ended 30 June 2009
Group results for the quarter
- Adjusted headline earnings increase to a record $167m, or 47 US cents per
share
- Production rises to 1.127Moz at a total cash cost of $472/oz
- Achieved discount to spot gold price of 3%; Received gold price up 5% to
$897/oz
- Balance sheet bolstered by $732.5m convertible bond and receipt of $750m
Boddington proceeds
- Obuasi and Geita continue to deliver on turnaround strategy
- Interim dividend declared of 60 South African cents per share or 7.61 US
cents per ADS
Events post quarter-end...
- Hedge commitments reduced by 1.4Moz to 4.4Moz at the end of July, now less
than one year`s production
- Wage settlement reached with South African trade unions
- Agreement with Randgold Resources to acquire a 50% stake in Moto Goldmines
Limited
Quarter
ended ended
Jun Mar
2009 2009
SA rand / Metric
Operating review
Gold
Produced - kg / oz (000) 35,050 34,306
Price received - R/kg / $/oz 241,505 273,109
Price received normalised for
accelerated settlement of non-
hedge derivatives - R/kg / $/oz 241,505 273,109
Total cash costs - R/kg / $/oz 127,956 141,552
Total production costs - R/kg / $/oz 161,909 180,751
Financial review
Gross profit - Rm / $m 3,051 1,102
Gross profit (loss) adjusted for the
gain (loss) on unrealised non-hedge
derivatives and other commodity
contracts - Rm / $m 2,511 2,764
Adjusted gross profit normalised for
accelerated settlement of non-hedge
derivatives - Rm / $m 2,511 2,764
Profit (loss) attributable to equity
shareholders - Rm / $m 2,304 1
Headline earnings (loss) - Rm / $m 1,631 -
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 1,359 1,482
Capital expenditure - Rm / $m 2,228 2,381
Profit (loss) per ordinary share - cents/share
Basic 642 -
Diluted 641 -
Headline 455 -
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 379 414
Six months
ended ended
Jun Jun
2009 2008
Restated
SA rand / Metric
Operating review
Gold
Produced - kg / oz (000) 69,356 76,194
Price received - R/kg / $/oz 256,862 67,390
Price received normalised for
accelerated settlement of non-
hedge derivatives - R/kg / $/oz 256,862 181,303
Total cash costs - R/kg / $/oz 134,681 106,429
Total production costs - R/kg / $/oz 171,229 137,238
Financial review
Gross profit - Rm / $m 4,153 (2,099)
Gross profit (loss) adjusted for the
gain (loss) on unrealised non-hedge
derivatives and other commodity
contracts - Rm / $m 5,275 (4,371)
Adjusted gross profit normalised for
accelerated settlement of non-hedge
derivatives - Rm / $m 5,275 3,647
Profit (loss) attributable to equity
shareholders - Rm / $m 2,305 (3,988)
Headline earnings (loss) - Rm / $m 1,631 (4,593)
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 2,840 (6,063)
Capital expenditure - Rm / $m 4,608 4,287
Profit (loss) per ordinary share - cents/share
Basic 643 (1,412)
Diluted 641 (1,412)
Headline 455 (1,626)
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 792 (2,146)
Quarter
ended ended
Jun Mar
2009 2009
US dollar / Imperial
Operating review
Gold
Produced - kg / oz (000) 1,127 1,103
Price received - R/kg / $/oz 897 858
Price received normalised for
accelerated settlement of non-
hedge derivatives - R/kg / $/oz 897 858
Total cash costs - R/kg / $/oz 472 445
Total production costs - R/kg / $/oz 598 568
Financial review
Gross profit - Rm / $m 387 111
Gross profit (loss) adjusted for the
gain (loss) on unrealised non-hedge
derivatives and other commodity
contracts - Rm / $m 305 279
Adjusted gross profit normalised for
accelerated settlement of non-hedge
derivatives - Rm / $m 305 279
Profit (loss) attributable to equity
shareholders - Rm / $m 299 -
Headline earnings (loss) - Rm / $m 215 -
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 167 150
Capital expenditure - Rm / $m 261 241
Profit (loss) per ordinary share - cents/share
Basic 83 -
Diluted 83 -
Headline 60 -
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 47 42
Six months
ended ended
Jun Jun
2009 2008
Restated
US dollar / Imperial
Operating review
Gold
Produced - kg / oz (000) 2,230 2,450
Price received - R/kg / $/oz 878 289
Price received normalised for
accelerated settlement of non-
hedge derivatives - R/kg / $/oz 878 736
Total cash costs - R/kg / $/oz 458 433
Total production costs - R/kg / $/oz 583 558
Financial review
Gross profit - Rm / $m 498 18
Gross profit (loss) adjusted for the
gain (loss) on unrealised non-hedge
derivatives and other commodity
contracts - Rm / $m 584 (537)
Adjusted gross profit normalised for
accelerated settlement of non-hedge
derivatives - Rm / $m 584 474
Profit (loss) attributable to equity
shareholders - Rm / $m 299 (229)
Headline earnings (loss) - Rm / $m 215 (307)
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 317 (761)
Capital expenditure - Rm / $m 502 561
Profit (loss) per ordinary share - cents/share
Basic 83 (81)
Diluted 83 (81)
Headline 60 (109)
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 88 (269)
$ represents US dollar, unless otherwise stated.
Rounding of figures may result in computational discrepancies.
Operations at a glance
for the quarter ended 30 June 2009
Production
%
Variance 1
oz (000)
SOUTHERN AFRICA 450 (6)
South Africa
Great Noligwa 39 (9)
Kopanang 66 (14)
Moab Khotsong 47 (28)
Tau Lekoa 28 (10)
Surface Operations 42 (9)
Mponeng 140 9
Savuka 13 (7)
TauTona 61 3
Namibia
Navachab 13 (28)
REST OF AFRICA 386 13
Ghana
Iduapriem 47 27
Obuasi 101 10
Guinea
Siguiri - Attributable 85% 80 -
Mali
Morila - Attributable 40% 2 34 (13)
Sadiola - Attributable 38% 2 35 (3)
Yatela - Attributable 40% 2 25 79
Tanzania
Geita 63 43
Minorities, exploration and other
AUSTRALIA 94 (4)
Sunrise Dam 94 (4)
Exploration and other
SOUTH AMERICA 144 14
Argentina
Cerro Vanguardia - Attributable 92.50% 51 9
Brazil
AngloGold Ashanti Brasil Mineracao 73 7
Serra Grande - Attributable 50% 20 82
Minorities, exploration and other
NORTH AMERICA 52 (7)
United States
Cripple Creek & Victor 52 (7)
Other
OTHER
Sub-total 1,127 2
Less equity accounted investments
AngloGold Ashanti
Total cash costs
%
Variance 1
$/oz
SOUTHERN AFRICA 444 28
South Africa
Great Noligwa 708 21
Kopanang 446 32
Moab Khotsong 434 49
Tau Lekoa 751 27
Surface Operations 320 52
Mponeng 304 25
Savuka 683 51
TauTona 439 14
Namibia
Navachab 722 58
REST OF AFRICA 564 (5)
Ghana
Iduapriem 530 (1)
Obuasi 589 (16)
Guinea
Siguiri - Attributable 85% 451 (8)
Mali
Morila - Attributable 40% 2 511 24
Sadiola - Attributable 38% 2 486 54
Yatela - Attributable 40% 2 386 (29)
Tanzania
Geita 872 (14)
Minorities, exploration and other
AUSTRALIA 512 (14)
Sunrise Dam 503 (12)
Exploration and other
SOUTH AMERICA 325 (7)
Argentina
Cerro Vanguardia - Attributable 92.50% 344 (14)
Brazil
AngloGold Ashanti Brasil Mineracao 287 -
Serra Grande - Attributable 50% 409 (18)
Minorities, exploration and other
NORTH AMERICA 362 4
United States
Cripple Creek & Victor 351 4
Other
OTHER
Sub-total 472 6
Less equity accounted investments
AngloGold Ashanti
Gross profit (loss) adjusted
for the gain (loss) on
unrealised non-hedge
derivatives and other
commodity contracts
$m
Variance 1
$m
SOUTHERN AFRICA 144 (26)
South Africa
Great Noligwa (1) (5)
Kopanang 15 (10)
Moab Khotsong 5 (15)
Tau Lekoa 3 (1)
Surface Operations 24 (3)
Mponeng 79 16
Savuka - (4)
TauTona 17 1
Namibia
Navachab 2 (4)
REST OF AFRICA 78 22
Ghana
Iduapriem 15 5
Obuasi 10 11
Guinea
Siguiri - Attributable 85% 15 (7)
Mali
Morila - Attributable 40% 2 13 (4)
Sadiola - Attributable 38% 2 16 (1)
Yatela - Attributable 40% 2 13 10
Tanzania
Geita (8) 9
Minorities, exploration and other 4 (1)
AUSTRALIA 28 18
Sunrise Dam 29 17
Exploration and other (1) 1
SOUTH AMERICA 67 18
Argentina
Cerro Vanguardia - Attributable 92.50% 18 7
Brazil
AngloGold Ashanti Brasil Mineracao 35 6
Serra Grande - Attributable 50% 7 3
Minorities, exploration and other 7 2
NORTH AMERICA 23 1
United States
Cripple Creek & Victor 24 1
Other (1) -
OTHER 7 (2)
Sub-total 347 31
Less equity accounted investments (42) (5)
AngloGold Ashanti 305 26
1 Variance June 2009 quarter on March 2009 quarter - increase (decrease).
2 Equity accounted investments.
Rounding of figures may result in computational discrepancies.
Financial and operating review
OVERVIEW FOR THE QUARTER
Safety remained the most critical issue for AngloGold Ashanti in the second
quarter, with strong action taken to improve conditions across the company`s
operations, particularly those in the Vaal River Region. During the period,
eight miners tragically lost their lives in accidents at the Moab Khotsong,
Kopanang, Tau Lekoa, Savuka, Navachab and Obuasi mines. The findings of the
Safety Strategic Blueprint have been reviewed by the executive and key areas
for improvement identified. Detailed execution plans are being drafted, with
implementation scheduled for the first quarter of next year. In the interim,
management`s efforts are focused on addressing specific problem areas with
teams that continue to experience high levels of accidents, in order to effect
rapid change in the near term.
The effects of ongoing safety interventions over the past seven quarters,
however, are evidenced in the improvement in Lost Time Injury Frequency Rate,
which was 19% lower during the period at 5.68 per million hours worked. That is
the best performance on record. The all Medical Treatment Frequency Rate
reduced by 8% to 18.84 in the second quarter. Still, there remains important
work to be done in creating an injury free environment for all employees.
The strength of the South African rand, the Brazilian real and the Australian
dollar were dominant market themes during the quarter. The strengthening of
local currencies against the US dollar had an unfavourable effect on costs in
dollar terms. While the dollar-denominated spot price of gold rose by only 2%,
the price in rand terms fell 14%, in Brazilian real terms fell 15% and in
Australian dollars terms was 14% lower.
Second-quarter gold production of 1.127Moz was 2% higher than the previous
period and 1% below initial market guidance of 1.14Moz. Price received for the
quarter was 5% higher than the previous quarter at $897/oz. The company
achieved a 3% discount to the average spot price of $924/oz in line with its
stated objective of achieving a 6% discount to spot for 2009. Total cash costs
of $472/oz was in line with guidance of $465/oz to $485/oz. Adjusted headline
earnings were 12% higher at 47 US cents per share
The overall operating performance across the business was encouraging, with
strong results from South America and signs of improved performance at the
Geita and Obuasi mines being offset by lower output from South Africa`s Vaal
River region, where performance was affected by safety related stoppages.
Southern Africa operations produced 450,000oz during the period at a total cash
cost of $444/oz, compared with 481,000oz at $347/oz in the first quarter.
Uranium output fell 10% to 332,000lbs, the result of lower tonnes mined at Moab
Khotsong, Great Noligwa and Kopanang mines. While dollar-based costs in South
Africa were adversely affected by a 15% strengthening in the average value of
the rand against the US dollar during the period, adjusted gross profit of
$143m underscores the strong earnings and cashflow leverage of these assets at
current gold prices.
The West Wits mines, particularly the flagship Mponeng operation, delivered an
exceptional performance with a 7% increase in gold output and good cost
control, despite carrying once-off maintenance costs associated with the
commissioning of three additional refrigeration plants. The Mponeng plant was
chosen as one of the initial sites for the rollout of AngloGold Ashanti`s
Business Process Framework and is showing encouraging improvements in reduced
process variation, leading to increased plant gold throughput. At the Savuka
mine, as previously disclosed to the market, the sub-shaft and surrounding
infrastructure was damaged after a series of seismic events on 22 May 2009. The
damage assessment carried out indicates that the mine will only be back to full
production within nine months. TauTona on the other hand, had a solid quarter
with gold production increasing by 5%.
The Vaal River division had a challenging second quarter, particularly given
safety-related stoppages which reduced output at Moab Khotsong and Kopanang. In
the Southern Africa region, the Vaal River division had contributed to 88% of
all safety related stoppages. Moab Khotsong lost 13 production days, while
Kopanang lost 16 production days during the period. These stoppages affected
the area mined and hence gold production was down 27% and 15% at Moab Khotsong
and Kopanang respectively. Great Noligwa lost 9 production days due to an
underground fire and cessation of mining during a search for a missing miner.
The focus of management is now clearly being devoted to turning around the Vaal
River operations to get the safety and production momentum back.
The remaining African operations, produced 386,000oz at a total cash cost of
$564/oz, compared with 342,000oz at $591/oz in the previous quarter. Siguiri
had another strong quarter, maintaining output at 80,000oz while total cash
costs declined 8% to $451/oz. Mining was uninterrupted during the period.
However, gold shipments were temporarily halted in June while the company held
talks with government over the provisions made for environmental liabilities.
Mali had a steady quarter with attributable gold output increasing from
89,000oz to 94,000oz quarter-on-quarter.
Obuasi continued its recovery. Production at 101,000oz was 10% higher than that
of the first quarter. This was largely as a result of a 17% improvement in
yield from underground operations due primarily to improved head-grade control
and better recoveries. Decreases in power tariffs and more favourable
contractor rates and other efficiencies across the operation contributed to the
16% or $112/oz drop in total cash costs at Obuasi.
There were also promising early signs of a recovery at Geita. New management is
in place and the company continues to see the results of earlier interventions
in improved performance. Tonnage throughput increased after last quarter`s
repairs to the SAG and Ball Mills and higher grades helped the mine achieve a
43% rise in production to 63,000oz. Total cash costs fell 14% to $872/oz. While
there remains much hard work to be done in Tanzania and Ghana, the combined
efforts of both management teams in these countries have assisted in the
long-awaited turnaround of assets that will become substantial contributors in
the future.
The South American region built on impressive gains made in the past quarter
with production up 14% to 144,000oz and total cash cost down 7% to $325/oz. In
Argentina, Cerro Vanguardia`s attributable production rose 9% to 51,000oz,
while total costs dropped 14% to $344/oz. This improvement represents a
remarkable turnaround in the performance of Cerro Vanguardia, with
gold-equivalent production almost doubling while total cash costs have more
than halved in the past year.
The team in Brazil delivered a similarly robust operating performance, with
Brasil Mineracao`s production rising some 7% to 73,000oz while total cash costs
remained unchanged. The successful commissioning of the mill expansion project
at Serra Grande helped to almost double AngloGold Ashanti`s attributable
production from the mine to 20,000oz with an 18% improvement in total cash
costs. The Sao Bento deposit, acquired in December 2008 has produced
encouraging drill results confirming assumptions made when the initial purchase
was made.
In Australia, while Sunrise Dam`s production fell 4% to 94,000oz, total cash
costs improved by 12% to $503/oz. In the United States, Cripple Creek &
Victor`s production declined 7% to 52,000oz, while total costs rose 4% to
$351/oz.
On the exploration front, a joint venture agreement was signed with Laurentian
Goldfields to advance greenfields exploration in specific areas in Quebec,
Ontario and Saskatchewan. A partnership was also formed with Thani Dubai, a
Dubai based explorer, to drill and ultimately develop new deposits in North
Africa and the Middle East. The greenfields team also maintained its activities
in Australia, the Americas, China, Southeast Asia, Sub-Saharan Africa, Russia
and the Democratic Republic of Congo.
Drilling at the La Colosa prospect in Colombia remains suspended pending the
conclusion of a public appeal process. The company is working towards a
positive outcome in this regard and is working closely with the government and
community organisations to ensure the best possible plan for continued
exploration and ultimately the development of La Colosa.
The prefeasibility study on the Tropicana gold project in Australia was
completed during the quarter and a decision was taken by AngloGold Ashanti and
its partner, Independence Group, to proceed with a full bankable study.
Tropicana, which boasts a resource of 5Moz, presents the opportunity to gain a
foothold in an important new gold district, about 300 kilometres from
Kalgoorlie. The bankable study will determine whether to use contractor or
owner mining and whether to opt for gas or diesel power supplied by a third
party. Once developed, the mine is expected to produce an average of between
330,000oz and 410,000oz a year, at a total cash cost of between A$590/oz and
A$710/oz, over a 10-year initial life. There is potential to increase resources
and mine life through additional drilling at the nearby Havana South and other
prospects.
AngloGold Ashanti agreed on 16 July 2009 to invest $244m for a 50% stake in
Moto Goldmines Limited in the Democratic Republic of Congo. The company`s
participation is contingent on a successful bid for Moto Goldmines Limited, the
70% owner of the Moto Gold Project, by Randgold Resources Limited, AngloGold
Ashanti`s long-standing joint venture partner at the Morila mine. Participation
by the company is a strategic move to gain a prudent degree of exposure to one
of the world`s richest gold ore bodies which has an indicative resource of
22Moz and reserves of 5.5Moz. The investment allows the company to leverage the
relationship with Randgold, as well as its combined experience of building and
operating some of the largest gold mining projects in Africa. The project
complements AngloGold Ashanti`s long-term growth plans in Africa and beyond, by
giving the company a presence in another of the world`s most important gold
districts.
During the quarter, the company continued efforts to strengthen the balance
sheet with the issue of the $732.5m convertible bond due in 2014. Demand for
the bonds was robust, allowing AngloGold Ashanti to realise an attractive
coupon of 3.5% and a strike price at a 37.5% premium to the volume-weighted
average price of $34.6272 on 18 May 2009.
AngloGold Ashanti also received $750m from Newmont Mining Corporation, the
first tranche of the consideration for its purchase of the 33.33% stake in the
Boddington project in Australia. Under the terms of the agreement announced in
January, Newmont Mining Corporation also reimbursed the company A$225m for
AngloGold Ashanti`s contribution to capital spend and working capital on the
project this year.
During July 2009, AngloGold Ashanti continued executing on its previously
communicated board approved strategy to reduce its outstanding gold derivatives
position. The strength of the company`s balance sheet and management`s view of
a robust macroeconomic environment for gold, resulted in the accelerated
settlement of certain outstanding gold derivative positions. These accelerated
settlements, together with the normal scheduled delivery for the second
quarter, reduced the total committed ounces to 4.45Moz at 25 July 2009, from
5.84Moz at 31 March 2009, the end of the first quarter. The restructure was
funded from available cash, resulting in a net cash outflow of approximately
$797m, which will be reflected in the company`s financial statements (as a
realised charge to adjusted headline earnings) for the third quarter ending 30
September 2009.
AngloGold Ashanti`s total committed ounces is projected to reduce to 4.1Moz by
31 December 2009, meeting the company`s broader target a year ahead of schedule
and eliminating steeply discounted spot prices in years 2010, 2011 and 2012.
The committed ounces are projected to reduce by approximately 800,000 ounces a
year from 2010 and is currently projected to wind up, save for 29,000oz, by the
end of 2014. The company estimates that it will realise a discount of
approximately 7% to the gold spot price over this period, assuming a US$950/oz
spot price in real terms.
The majority of the ounces affected by the above mentioned restructure were
designated as Normal Purchase Normal Sale Exempted (`NPSE`) contracts, allowing
them to be accounted for off balance sheet. As a consequence, all contracts
that were previously classified as NPSE will be re-designated as non-hedge
derivatives, accounted for at fair value on the balance sheet with adjustments
accounted for through the income statement. Based on the fair values as at 30
June 2009, the income statement impact of this re- designation is estimated to
be approximately US$1.1bn, of which approximately US$0.5bn remains unrealised
as at 25 July 2009. This re-designation will be reflected in the third quarter,
ending 30 September 2009, financial statements. The change in designation of
the hedge contracts will however provide the company with improved flexibility
in actively managing the hedge book going forward.
Following the quarter end, the company successfully concluded its 2009/2010
South African wage negotiations, agreeing to an increase that has a 9.7% impact
on payroll costs for the South African operations in the first year, and 1%
above inflation, with a guaranteed minimum of 7.5%, in the second.
Wage increases are effective from 1 July. The settlement was concluded after a
constructive, three-month interaction with trade unions and resulted in a
settlement AngloGold Ashanti believes is fair to all parties involved.
Given the interruptions to our South African and Tanzanian operations in the
first half and the leach-pad issues at Cripple Creek & Victor in the U.S., the
production target for 2009 has been adjusted to be between 4.7Moz to 4.8Moz, at
an average total cash cost of between $480/oz and $495/oz. This estimate is at
an average rand exchange rate of R8.10/$ for the second half of the year. At
R7.50/$ for the second half of the year the range is likely to be approximately
$15/oz higher and at R8.70/$ the range is likely to be $15/oz lower.
For the third quarter, production is estimated at 1.2Moz at a total cash cost
of approximately $530/oz, at an average exchange rate of R8.10/$ for the
quarter. There is a $22/oz sensitivity for a 60 cents swing in the rand either
way. It is important to note that third-quarter costs have typically been the
highest in any given year due to seasonal factors such as winter power tariffs
in South Africa and wage increases effective from 1 July 2009. The effect is
further compounded this year by the sharp strengthening of local operating
currencies.
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
The average spot price for gold for the second quarter was US$924/oz, 2% higher
than the previous quarter`s average of US$909/oz and almost the same as the
highest quarterly average of US$925/oz recorded in first quarter of last year.
Investment demand, the primary driver of the gold price in the first quarter of
this year, became far less conspicuous as the year wore on. The combined
holdings of the nine major gold exchange-traded funds at the start of the
second quarter stood at around 53Moz and grew just 3% to 54.5Moz by the end of
June. Although this growth was by no means stellar, it is encouraging that
these holdings demonstrated resilience in a volatile price environment.
At the G20 summit in April, global leaders unveiled massive financial packages
to stimulate the sagging global economy. Amongst the initiatives proposed was
the sale of 403t of the IMF`s gold reserves, a surprising move for some
investors that caused prices to suffer. The market is now focused on how the
sale will take place given that it was subsequently ratified by the US Senate.
The likelihood is that the sales will occur under the auspices of the Central
Bank Accord, which may necessitate a third agreement given that the current one
expires in September. Alternatively the IMF`s holding may be disposed of in an
off-market sale to one or more central banks.
The other major consequence of the announcements made by the G20 was of an
appetite for investment risk in global markets. Equity indices, particularly in
the Brazilian, Russian, Indian and Chinese markets, which had sold off heavily
in the earlier flight to cash, attracted huge investor interest. Industrial
(bulk) commodities which had crashed in the fourth quarter of 2008 began to
rebound as China was rumoured to be replenishing its inventories.
Despite the absence of new investment demand for gold as evidenced by the lack
of growth in ETF holdings, speculators on the COMEX and CBOT bought gold as the
US dollar weakened and the "reflation" trade swept oil prices up in its wake
and with it, expectations of inflation. By the middle of May, the combined
speculative position on those exchanges was almost 25Moz, a level not seen
since the third quarter of last year.
The global economic crisis appears far from over despite some earlier optimism.
At the G8 meeting in July a more sobering outlook on the global economy
emerged, suggesting that hopes for a rebound may have been temporary. Also, the
lack of clarity on a viable alternative global reserve currency to the US
dollar continued to underpin the greenback. These factors have weighed heavily
on commodities and the gold price and are likely to continue to do so for the
medium term.
The US dollar felt the adverse effects of renewed risk appetite and weakened to
its lowest level this year of Euro/US$1.4337. The South African rand,
Australian dollar and Brazilian real were once again beneficiaries of some of
this increased risk appetite. The rand was the best performer of these
currencies, strengthening 20% from its opening rate of about US$/R 9.59 to
close the quarter at US$/R 7.71. The outperformance of the rand, relative to
the Australian dollar and real, was helped by announcement of corporate deals
in South Africa`s telecommunications industry. The Australian dollar gained 15%
over the quarter to close at about A$/US$0.81 and the Brazilian real
appreciated 16% to end the quarter at US$/BRL1.96.
Physical demand
Jewellery Sales
Most major markets continue to be affected by the global financial crisis, with
negative first quarter trends continuing, particularly in the United States and
Middle East markets. Demand in China, however, continued to hold firm.
India, the world`s largest gold market, appears to have turned the corner with
an improved second quarter. Indeed, during this period gold jewellery
outperformed most other business sectors. The second quarter is traditionally a
strong one in the country as gold jewellery demand spikes on the auspicious
festival of Akshaya Trithya and the onset of the wedding season. Despite the
financial crisis, year-on-year demand during the festival only dropped from 51t
to 46t. The success of the festival has bolstered gold sentiment and
encouragingly, some retailers are considering expansion again. Recycling was
still high in the second quarter at an estimated 60% of retail sales thus
affecting gold imports into the country. However, since most retailers will not
pay cash for gold, the majority of recycled gold remains in the gold market.
In China, the second quarter is traditionally slower for jewellery sales and
this quarter confirms that trend with a quarter-on-quarter decline. While
year-on-year second quarter jewellery demand is slightly down, this may be seen
as an indicator of Chinese gold market resilience as second quarter 2008 was
particularly strong and predated the full onset of the financial crisis. Demand
for pure gold jewellery is still high, especially in rural markets, with the
investment appeal of pure gold keeping consumption levels robust in the face of
the economic crisis. Many retailers who used to focus on diamond, gem-set and
platinum jewellery are now forced to significantly increase their pure gold
inventories as it`s by far the best performer in the sector.
Eighteen-carat gold sales are flat when compared with the first quarter but
demand for lighter pieces has increased, which is heartening. Activity in the
scrap market has increased year-on-year but is down on the first quarter as the
gold price has been lower. In China, scrap represents an estimated 30% to 40%
of total gold jewellery sales and, as with India, most retailers do not accept
cash in exchange for gold but instead would recycle the metal for jewellery.
In the US, the current economic climate sees consolidation continuing
throughout the value chain. Retail sales on primary value gold products are
down by 14% year-on-year. This negative trend is expected to continue as gold
jewellery demand will take longer to recover from the crisis, as is the case
across the US economy with discretionary spending on more expensive items. Gold
jewellery imports are down over 40% year-on-year with jewellery retailers
reluctant to increase inventories, choosing rather to recycle their own stocks
to bring out new, often lighter, jewellery designs. Consumer participation in
recycling is limited.
In the Middle East, the global financial crisis continues to severely dampen
jewellery demand, with an estimated 15% drop in sales year-on-year. The
traditional gold sales boost that accompanies the summer festival was reduced
with a 60% drop in tourists visiting Dubai. Gold jewellery sales started to
improve in April due to the wedding and holiday seasons stimulating sales.
However, consumers preferred to buy lighter pieces and half sets of jewellery
due to the volatility of the gold price. Despite a negative quarter, there is
positive sentiment for the next quarter with sales anticipated to increase by
at least 10%. The Egyptian market continued to buck regional trends and
remained firm in the second quarter, with a year-on-year increase in trade
demand. The lower gold price in this quarter helped bolster import demand as
well as local sales. Yemen, Sudan, Iraq and Algeria are considered promising
emerging markets for a few major Gulf players looking to expand.
Investment Market
As noted above, while ETF sales did not grow quarter-on-quarter, there was at
least no net decline in holdings despite price volatility. Coin and bar
hoarding in China was down due to uncertainty about the gold price, while in
India demand remained robust for higher net-worth individuals. The Middle East
experienced a 20% drop in coin sales. In the US bar and coin sales data are not
yet available but it is anticipated that while the second quarter may have
lagged the first, it will still have grown compared with a year earlier. In the
second quarter it is probably no longer the case that increases in US gold
investment demand offset the decline in jewellery demand, as was the case in
the first quarter. The prospect of rising inflation is expected to strengthen
gold investment demand in the US going forward.
Hedge position
As at 30 June 2009, AngloGold Ashanti had the following outstanding
forward-pricing commitments against future production. The total ounces
committed on this date was 5.19Moz or 162t (as at 31 March 2009:
5.84Moz or 182t) and the total net delta tonnage of the hedge on this date was
4.41Moz or 137t (at 31 March 2009: 4.86Moz or 151t).
The marked-to-market value of all hedge transactions making up the hedge
positions was a negative $2.31bn (negative R17.84bn) as at 30 June 2009 (at 31
March 2009: negative $2.48bn - negative R23.84bn). The value was based on a
gold price of $929 per ounce, exchange rates of R7.71/$ and A$/$0.8054 and the
prevailing market interest rates and volatilities at the time.
As at 29 July 2009, the marked-to-market value of the hedge book was a negative
$1.45bn (negative R11.45bn), based on a gold price of $935.30/oz and exchange
rates of R7.90/$ and A$/$0.82 and the prevailing market interest rates and
volatilities at the time.
These marked-to-market valuations are in no way predictive of the future value
of the hedge position nor of future impact on the revenue of the company. The
valuation represents the cost of buying all hedge contracts at the time of
valuation, at market prices and rates available at the time.
The following table indicates the group`s commodity hedge position at 30 June
2009
Year 2009 2010
US DOLLAR GOLD
Forward contracts Amount (oz) *(1,100,067) 168,590
**US$/oz $897 ($101)
Put options sold Amount (oz) 450,000 235,860
US$/oz $814 $747
Call options sold Amount (oz) 560,000 1,173,630
US$/oz $793 $572
A DOLLAR GOLD
Forward contracts Amount (oz) *(31,000) 100,000
A$/oz A$925 A$707
Call options purchased Amount (oz) 40,000 100,000
A$/oz A$694 A$712
*** Total net gold: Delta (oz) 848,468 (1,188,743)
Committed (oz) 611,067 (1,342,220)
Year 2011 2012
US DOLLAR GOLD
Forward contracts Amount (oz) 328,250 359,000
**US$/oz $342 $388
Put options sold Amount (oz) 148,000 85,500
US$/oz $623 $538
Call options sold Amount (oz) 1,281,770 811,420
US$/oz $546 $635
A DOLLAR GOLD
Forward contracts Amount (oz)
A$/oz
Call options purchased Amount (oz)
A$/oz
*** Total net gold: Delta (oz) (1,481,476) (1,052,744)
Committed (oz) (1,610,020) (1,170,420)
Year 2013 2014-2015
US DOLLAR GOLD
Forward contracts Amount (oz) 306,000 91,500
**US$/oz $408 $510
Put options sold Amount (oz) 60,500 60,500
US$/oz $440 $450
Call options sold Amount (oz) 574,120 709,470
US$/oz $601 $606
A DOLLAR GOLD
Forward contracts Amount (oz)
A$/oz
Call options purchased Amount (oz)
A$/oz
*** Total net gold: Delta (oz) (814,031) (719,507)
Committed (oz) (880,120) (800,970)
Year Total
US DOLLAR GOLD
Forward contracts Amount (oz) 153,273
**US$/oz ($3,790)
Put options sold Amount (oz) 1,040,360
US$/oz $706
Call options sold Amount (oz) 5,110,410
US$/oz $608
A DOLLAR GOLD
Forward contracts Amount (oz) 69,000
A$/oz A$610
Call options purchased Amount (oz) 140,000
A$/oz A$707
*** Total net gold: Delta (oz) (4,408,033)
Committed (oz) (5,192,683)
* Indicates a net long position resulting from forward purchase contracts.
** The price represents the average weighted price, combining both forward
sales and purchases for the period.
*** The Delta of the hedge position indicated above is the equivalent gold
position that would have the same marked-to-market sensitivity for a small
change in the gold price. This is calculated using the Black-Scholes option
formula with the ruling market prices, interest rates and volatilities as at
30 June 2009.
The following table indicates the group`s currency hedge position at 30 June
2009
Year 2009 2010 2011 2012
RAND DOLLAR (000)
Put options purchased Amount ($) 50,000
US$/R R11.22
Put options sold Amount ($) 50,000
US$/R R9.73
Call options sold Amount ($) 50,000
US$/R R12.94
Year 2013 2014-2015 Total
RAND DOLLAR (000)
Put options purchased Amount ($) 50,000
US$/R R11.22
Put options sold Amount ($) 50,000
US$/R R9.73
Call options sold Amount ($) 50,000
US$/R R12.94
Rounding of figures may result in computational discrepancies.
Group`s currency hedge position at 30 June 2009 (continued)
Year 2009 2010 2011
A DOLLAR (000)
Forward contracts Amount ($) 270,000
A$/US$ A$0.78
Put options purchased Amount ($) 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$0.64
BRAZILIAN REAL (000)
Forward contracts Amount ($) 39,000
US$/BRL BRL 2.07
Year 2012 2013 2014-2015 Total
A DOLLAR (000)
Forward contracts Amount ($) 270,000
A$/US$ A$0.78
Put options purchased Amount ($) 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$0.64
BRAZILIAN REAL (000)
Forward contracts Amount ($) 39,000
US$/BRL BRL 2.07
Fair value of derivative analysis by accounting designation
Normal sale Cash flow
exempted hedge
accounted
US Dollar (millions)
as at 30 June 2009
Commodity option contracts (437) -
Foreign exchange option contracts - -
Forward sale commodity contracts (667) (43)
Forward foreign exchange contracts - -
Interest rate swaps (16) -
Total hedging contracts (1,120) (43)
Option component of convertible bond - -
Warrants on shares - -
Total derivatives (1,120) (43)
Credit risk adjustment (76) (1)
Total derivatives - before credit risk adjustment (1,196) (44)
Non-hedge
accounted Total
US Dollar (millions)
as at 30 June 2009
Commodity option contracts (1,241) (1,678)
Foreign exchange option contracts 10 10
Forward sale commodity contracts 25 (685)
Forward foreign exchange contracts 5 5
Interest rate swaps 18 2
Total hedging contracts (1,183) (2,346)
Option component of convertible bond (158) (158)
Warrants on shares *2 2
Total derivatives (1,339) (2,502)
Credit risk adjustment (170) (247)
Total derivatives - before credit risk adjustment (1,509) (2,749)
* Relates to B2Gold warrants
Post-close-out gold only hedge position report as at 25 July 2009
Year 2009 2010 2011 2012
US DOLLAR GOLD
Forward contracts
Amount (oz) *(27,249) *(198,860) 60,000 122,500
**US$/oz $1,637 $763 $227 $418
Put options sold
Amount (oz) 335,000 235,860 148,000 85,500
US$/oz $799 $747 $623 $538
Call options sold
Amount (oz) 455,000 1,025,380 776,800 811,420
US$/oz $881 $602 $554 $635
A DOLLAR GOLD
Forward contracts
Amount (oz) *(31,000) 100,000
A$/oz A$925 A$707
Call options purchased
Amount (oz) 40,000 100,000
A$/oz A$694 A$712
***Total net gold:
Delta (oz) (184,904) (696,906) (751,334) (824,731)
Committed (oz) (356,751) (826,520) (836,800) (933,920)
Year 2013 2014-2015 Total
US DOLLAR GOLD
Forward contracts Amount (oz) 119,500 91,500 167,391
**US$/oz $477 $510 ($167)
Put options sold Amount (oz) 60,500 60,500 925,360
US$/oz $440 $450 $687
Call options sold Amount (oz) 574,120 709,470 4,352,190
US$/oz $601 $606 $629
A DOLLAR GOLD
Forward contracts Amount (oz) 69,000
A$/oz A$609
Call options purchased Amount (oz) 140,000
A$/oz A$707
***Total net gold: Delta (oz) (632,117) (724,938) (3,814,930)
Committed (oz) (693,620) (800,970) (4,448,581)
* 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 25
July 2009.
Exploration
Total exploration expenditure during the second quarter, inclusive of
expenditure at equity accounted associates, was $43m ($23m brownfields, $20m
greenfields), compared with $31m ($15m brownfields, $16m greenfields) the
previous quarter.
BROWNFIELDS EXPLORATION
In South Africa, surface drilling continued in the Project Zaaiplaats area with
MMB5 continuing to drill deflection 5 which is designed to intersect the Vaal
Reef along the Jersey Fault cut-off. By the end of the quarter, drilling had
advanced from 2,653m to 2,874m. The Denny`s Reef was intersected at 2,859m and
a Vaal Reef intersection is now expected in August 2009. MZA9 continued
drilling a long deflection to the east, and reached a depth of 2,380m. The
first reef intersection is only expected in the fourth quarter. MGR8 advanced
to 3,023m. In the Moab North area, Borehole MCY4 was stopped after obstructions
in the hole could not be cleared. Rehabilitation and a move to MGR6 are
underway. In the West Rand, drilling of UD51 commenced early in June. The hole
is currently at a depth of 2,578m and is expected to intercept the VCR at about
3,900m.
At Obuasi in Ghana, exploration continued with two holes advancing below 50
level. These holes are all targeted at the Obuasi Fissure in the KMS Deeps
area.
In Argentina, at Cerro Vanguardia, the exploration programme continued with
20,036m of Mineral Resource delineation drilling, 8,643m of reconnaissance
drilling and 2,159m drilling for the underground project. For the El Volcan
project initial exploration has started and a detailed airborne magnetometry
survey is planned for the summer.
In Australia, at Sunrise Dam, 10,007m were drilled from 35 diamond drill holes
during the quarter. These aimed to infill and extend surface and underground
lodes within the immediate mine area. The extensions of the high-grade GQ,
Astro and Cosmo lodes were specifically targeted with significant intercepts
being obtained. The extensions of these lodes are likely to result in
significant mineral resource additions and results of their impact will be
forthcoming in the next few months. Additional investigations on the extensions
to high-grade gold mineralisation that lies open below 1km vertical, continues.
Assessment of the potential for further internal cutback opportunities to Mega
Pit are continuing and the outcomes of this work are anticipated during the
next period. The regional drilling at the Wilga project (AGA earning 70% from
Chalice Ltd), located 10km from Sunrise Dam, commenced. During the period,
7,726m were drilled from 180 aircore holes with results pending.
In Brazil, at the Corrego do Si-tio Sulphide Project, drilling continued with
2,770m being drilled from surface and 1,614m drilled from underground. At the
Lamego project, 1,856m of surface drilling was completed. At Serra Grande,
drilling focused on Fiuca and Pequizao, with a total of 5,088m being drilled.
At Siguiri in Guinea, exploration continued to focus on the generation of new
targets with soil sampling of Setiguiya & Sintroko East, target delineation
along the southern extension of Sintroko and selected drilling of the combined
pits. Mapping and modelling of pits and drill hole data has focused on
developing the structural setting and controls for the Siguiri mineralisation.
At Geita in Tanzania, focus for the quarter has been on target delineation,
infill and extensional drilling. Compilation and review of exploration targets
has been completed with 41 targets identified and geological reconnaissance of
EM targets is now underway. At Kalondwa Hill, drilling is nearing completion,
with geological & structural mapping ongoing to assist with developing the
geological understanding and controls. Drill planning for
Matandani-Kukuluma-Area 3 gaps is underway while at Chipaka, RC infill drilling
has been completed. Two diamond drill holes were completed at Star & Comet as
part of Mineral Resource risk amelioration.
At Morila, in Mali, diamond drilling was completed in April 2009 with no
significant intersections. At Sadiola and Yatela, steady progress is being made
with the regional exploration programme with anomalous and ore-grade
intersections being returned from gravity anomalies close to Yatela (e.g. YN,
YG3, YG6), in addition to ore-grade intersections below the previously mined
Alamoutala pit. A recent review of the structural controls of the Sadiola &
Yatela mineralisation, including satellite deposits such as Alamoutala and the
FE group, has highlighted significant potential for deeper drilling in order to
target sulphide mineralisation. Targets based on this interpretation are being
developed and will be incorporated into the current exploration programme.
At Navachab in Namibia, drilling continued with 60 holes, totalling 11,717m
being completed. On-mine exploration focused mainly on the HW vein down plunge
extension project and the NP2 down plunge extension. Regional exploration
focused mainly on the Gecko project with 1,637m being drilled at Gecko central
and 300m being drilled in the Gecko south area. The exploration has now shifted
to infill drilling which is designed to close the gap between Gecko South and
Gecko Central.
At Cripple Creek & Victor in the United States, drilling continues to evaluate
the Squaw Gulch and North Cresson areas with 17,404m being drilled. Drilling
for the High Grade Study was focused along the east wall of the Cresson
deposit. There was very little drilling for the High Grade Study programme as
the drills were utilised in the evaluation of Squaw Gulch. Drilling will resume
during the current quarter.
GREENFIELD EXPLORATION
Greenfield exploration activities were undertaken in eight regions during the
quarter: the Americas, Australia, China, the Democratic Republic of Congo, the
Middle East, North Africa, Russia, Southeast Asia and Sub- Saharan Africa. A
total of 41,798m of DDH, RC and AC drilling was completed at existing priority
targets and used to delineate new targets in Australia.
In Australia the prefeasibility study on the Tropicana Joint Venture Project
was completed during the quarter. Work has continued simultaneously on defining
exploration targets within trucking distance of Tropicana. A total of 841 AC
holes were drilled for 35,763m, 34 RC holes for 4,950m and 13 DDH holes for
1,680m. Auger sampling continued, with 18,762 samples collected across areas
along the Tropicana- Havana trend. RC and diamond drilling was focused around
Tropicana Group mining leases with significant results returned from RC
drilling at Screaming Lizard, including 12m @ 2.46g/t Au and diamond drilling
at Havana South including 9m @ 7.22g/t Au from 259m and 13m @ 5.86g/t Au from
255m. The Havana South holes targeted a zone of interpreted mineralisation
between two bounding faults located outside of the current pit shell.
Significant aircore results include: 4m @ 0.44g/t from 16m at Medusa; 4m @
1.2g/t from 12m and 4m @ 0.27g/t from 20m at Angels Kiss; as well as 4m @
0.68g/t Au from 36m and 7m @ 0.27g/t Au from 48m at Purple Haze. AC drilling
commenced on the 230km2, wholly owned Bronco Plains project located southwest
of the Tropicana JV, with 36 holes for 2,721m completed. Assay results are
outstanding.
In Colombia, Phase I and Phase II greenfield exploration was completed by
AngloGold Ashanti and by its joint venture partners B2Gold Corporation and
Mineros S.A. At the wholly owned La Colosa project, an exploration permit that
allows for the continued drill evaluation of the exploration contract, in a
limited area, was awarded by the Colombian Ministry of Mines and Energy. The
total area under exploration in Colombia at the end of the quarter was
27,874km2.
Work in the rest of the Americas focused on target generation and property
reviews, with good progress made on increasing our footprint in Canada. A joint
venture was signed with Laurentian Goldfields during the quarter to advance
greenfields exploration in Quebec, Ontario and Saskatchewan.
In China, exploration work is ongoing on the Jinchanggou project, while
tenement applications on regional targets and target-generation work is
continuing elsewhere in the country.
In Southeast Asia, project generation activities and evaluation of
opportunities are ongoing in a number of areas.
In Sub-Saharan Africa, project generation work and property appraisal work
continues in West, Central and East Africa. In Gabon an 8,000km2 authorisation
permit over the Ogooue Property was awarded.
No drilling took place in the Democratic Republic of the Congo during the
quarter. Outstanding results for 19 drill holes completed in late 2008 were
received during the quarter. The best intersections received were 12m @ 16.31
g/t Au from 81m, 7m @ 24.47 g/t Au from 69m, 4m @ 10.5 g/t Au from 119m & 9m @
7.6 g/t Au from 88m.
A Strategic Alliance to explore and ultimately develop mining operations in the
Middle East & North Africa was formed between AngloGold Ashanti and Thani
Investments during the second quarter.
Group operating results
Quarter ended
Jun Mar Jun
2009 2009 2008
Unaudited
Rand / Metric
OPERATING RESULTS
UNDERGROUND OPERATIONS
Milled
- 000 tonnes / - 000 tons 2,912 3,032 3,030
Yield
-g/t / - oz / t 6.33 6.22 7.08
Gold produced
- kg / - oz (000) 18,424 18,857 21,444
SURFACE AND DUMP RECLAMATION
Treated
- 000 tonnes / - 000 tons 3,345 3,264 2,875
Yield
-g/t / - oz / t 0.49 0.56 0.38
Gold produced
- kg / - oz (000) 1,653 1,824 1,100
OPEN-PIT OPERATIONS
Mined
- 000 tonnes / - 000 tons 43,894 45,352 44,336
Treated
- 000 tonnes / - 000 tons 6,487 5,737 6,164
Stripping ratio
- t (mined total - mined ore) / t mined ore 6.35 5.44 5.33
Yield
-g/t / - oz / t 1.92 1.99 2.25
Gold in ore
- kg / - oz (000) 8,231 7,750 12,411
Gold produced
- kg / - oz (000) 12,430 11,406 13,879
HEAP LEACH OPERATIONS
Mined
- 000 tonnes / - 000 tons 14,489 13,882 14,328
Placed 1
- 000 tonnes / - 000 tons 5,195 5,605 6,168
Stripping ratio
- t (mined total - mined ore) / t mined ore 1.67 1.51 1.45
Yield 2
-g/t / - oz / t 0.71 0.57 0.64
Gold placed 3
- kg / - oz (000) 3,692 3,220 3,929
Gold produced
- kg / - oz (000) 2,543 2,219 2,561
TOTAL
Gold produced
- kg / - oz (000) 35,050 34,306 38,984
Gold sold
- kg / - oz (000) 34,459 32,584 38,704
Price received
- R / kg / - $ / oz - sold 241,505 273,109 (44,303)
Price receiv ed normalised for
accelerated settlement of non-
hedge derivatives
- R / kg
/ - $ / oz - sold 241,505 273,109 178,796
Total cash costs
- R / kg / - $ / oz
- produced 127,956 141,552 108,195
Total production costs
- R / kg / - $ / oz
- produced 161,909 180,751 138,115
PRODUCTIVITY PER EMPLOYEE
Target
-g / - oz 313 293 340
Actual
-g / - oz 289 287 320
CAPITAL EXPENDITURE
- Rm / - $m 2,228 2,381 2,357
Six month
ended
Jun Jun
2009 2008
Unaudited
Rand / Metric
OPERATING RESULTS
UNDERGROUND OPERATIONS
Milled
- 000 tonnes / - 000 tons 5,945 5,931
Yield
-g/t / - oz / t 6.27 7.02
Gold produced
- kg / - oz (000) 37,281 41,608
SURFACE AND DUMP RECLAMATION
Treated
- 000 tonnes / - 000 tons 6,608 5,701
Yield
-g/t / - oz / t 0.53 0.42
Gold produced
- kg / - oz (000) 3,477 2,418
OPEN-PIT OPERATIONS
Mined
- 000 tonnes / - 000 tons 89,246 90,890
Treated
- 000 tonnes / - 000 tons 12,224 12,496
Stripping ratio
- t (mined total - mined ore) / t mined ore 5.86 5.11
Yield
-g/t / - oz / t 1.95 2.17
Gold in ore
- kg / - oz (000) 15,981 24,677
Gold produced
- kg / - oz (000) 23,836 27,118
HEAP LEACH OPERATIONS
Mined
- 000 tonnes / - 000 tons 28,371 27,567
Placed 1
- 000 tonnes / - 000 tons 10,800 11,576
Stripping ratio
- t (mined total - mined ore) / t mined ore 1.59 1.44
Yield 2
-g/t / - oz / t 0.64 0.65
Gold placed 3
- kg / - oz (000) 6,912 7,542
Gold produced
- kg / - oz (000) 4,762 5,050
TOTAL
Gold produced
- kg / - oz (000) 69,356 76,194
Gold sold
- kg / - oz (000) 67,043 75,802
Price received
- R / kg / - $ / oz - sold 256,862 67,390
Price received normalised for
accelerated settlement of non-
hedge derivatives
- R / kg
/ - $ / oz - sold 256,862 181,303
Total cash costs
- R / kg / - $ / oz
- produced 134,681 106,429
Total production costs
- R / kg / - $ / oz
- produced 171,229 137,238
PRODUCTIVITY PER EMPLOYEE
Target
-g / - oz 303 322
Actual
-g / - oz 288 311
CAPITAL EXPENDITURE
- Rm / - $m 4,608 4,287
Quarter ended
Jun Mar Jun
2009 2009 2008
Unaudited
Dollar / Imperial
OPERATING RESULTS
UNDERGROUND OPERATIONS
Milled
- 000 tonnes / - 000 tons 3,210 3,343 3,340
Yield
-g/t / - oz / t 0.185 0.181 0.206
Gold produced
- kg / - oz (000) 592 606 690
SURFACE AND DUMP RECLAMATION
Treated
- 000 tonnes / - 000 tons 3,687 3,598 3,169
Yield
-g/t / - oz / t 0.014 0.016 0.011
Gold produced
- kg / - oz (000) 53 59 35
OPEN-PIT OPERATIONS
Mined
- 000 tonnes / - 000 tons 48,385 49,992 48,872
Treated
- 000 tonnes / - 000 tons 7,151 6,324 6,795
Stripping ratio
- t (mined total - mined ore) / t mined ore 6.35 5.44 5.33
Yield
-g/t / - oz / t 0.056 0.058 0.066
Gold in ore
- kg / - oz (000) 265 249 399
Gold produced
- kg / - oz (000) 400 367 446
HEAP LEACH OPERATIONS
Mined
- 000 tonnes / - 000 tons 15,971 15,302 15,794
Placed 1
- 000 tonnes / - 000 tons 5,727 6,179 6,799
Stripping ratio
- t (mined total - mined ore) / t mined ore 1.67 1.51 1.45
Yield 2
-g/t / - oz / t 0.021 0.017 0.019
Gold placed 3
- kg / - oz (000) 119 104 126
Gold produced
- kg / - oz (000) 82 71 82
TOTAL
Gold produced
- kg / - oz (000) 1,127 1,103 1,253
Gold sold
- kg / - oz (000) 1,108 1,048 1,244
Price received
- R / kg / - $ / oz - sold 897 858 (157)
Price receiv ed normalised for
accelerated settlement of non-
hedge derivatives
- R / kg
/ - $ / oz - sold 897 858 717
Total cash costs
- R / kg / - $ / oz
- produced 472 445 434
Total production costs
- R / kg / - $ / oz
- produced 598 568 554
PRODUCTIVITY PER EMPLOYEE
Target
-g / - oz 10.08 9.42 10.93
Actual
-g / - oz 9.30 9.23 10.27
CAPITAL EXPENDITURE
- Rm / - $m 261 241 304
Six months
ended
Jun Jun
2009 2008
Unaudited
Dollar / Imperial
OPERATING RESULTS
UNDERGROUND OPERATIONS
Milled
- 000 tonnes / - 000 tons 6,553 6,537
Yield
-g/t / - oz / t 0.183 0.205
Gold produced
- kg / - oz (000) 1,199 1,338
SURFACE AND DUMP RECLAMATION
Treated
- 000 tonnes / - 000 tons 7,284 6,284
Yield
-g/t / - oz / t 0.015 0.012
Gold produced
- kg / - oz (000) 112 78
OPEN-PIT OPERATIONS
Mined
- 000 tonnes / - 000 tons 98,377 100,189
Treated
- 000 tonnes / - 000 tons 13,475 13,774
Stripping ratio
- t (mined total - mined ore) / t mined ore 5.86 5.11
Yield
-g/t / - oz / t 0.057 0.063
Gold in ore
- kg / - oz (000) 514 793
Gold produced
- kg / - oz (000) 766 872
HEAP LEACH OPERATIONS
Mined
- 000 tonnes / - 000 tons 31,274 30,387
Placed 1
- 000 tonnes / - 000 tons 11,905 12,760
Stripping ratio
- t (mined total - mined ore) / t mined ore 1.59 1.44
Yield 2
-g/t / - oz / t 0.019 0.019
Gold placed 3
- kg / - oz (000) 222 242
Gold produced
- kg / - oz (000) 153 162
TOTAL
Gold produced
- kg / - oz (000) 2,230 2,450
Gold sold
- kg / - oz (000) 2,155 2,437
Price received
- R / kg / - $ / oz - sold 878 289
Price received normalised for
accelerated settlement of non-
hedge derivatives
- R / kg
/ - $ / oz - sold 878 736
Total cash costs
- R / kg / - $ / oz
- produced 458 433
Total production costs
- R / kg / - $ / oz
- produced 583 558
PRODUCTIVITY PER EMPLOYEE
Target
-g / - oz 9.75 10.34
Actual
-g / - oz 9.27 10.00
CAPITAL EXPENDITURE
- Rm / - $m 502 561
1 Tonnes (tons) placed on to leach pad.
2 Gold placed / tonnes (tons) placed.
3 Gold placed into leach pad inventory.
Rounding of figures may result in computational discrepancies.
Group income statement
Quarter Quarter Quarter
ended ended ended
June March June
2009 2009 2008
SA Rand million Notes Unaudited Unaudited Unaudited
Revenue 2 6,817 6,824 7,950
Gold income 6,481 6,518 7,749
Cost of sales 3 (5,212) (5,621) (4,894)
Gain (loss) on non-hedge
derivatives and other
commodity contracts 4 1,783 205 (1,425)
Gross profit (loss) 3,051 1,102 1,431
Corporate administration
and other expenses (300) (351) (255)
Market development costs (25) (28) (24)
Exploration costs (243) (221) (266)
Other operating expenses 5 (51) (50) (48)
Operating special items 6 739 (60) 273
Operating profit (loss) 3,171 391 1,111
Interest received 92 97 101
Exchange gain (loss) 285 16 (16)
Fair value adjustment on
option component of
convertible bond (123) - 12
Finance costs and unwinding
of obligations (322) (252) (213)
Share of equity accounted
investments` profit (loss) 160 223 (770)
Profit (loss) before
taxation 3,263 476 225
Taxation 7 (915) (384) (471)
Profit (loss) after
taxation from continuing
operations 2,348 92 (246)
Discontinued operations
Profit from discontinued
operations - - 191
Profit (loss) for the period 2,348 92 (55)
Allocated as follows:
Equity shareholders 2,304 1 (176)
Minority interest 44 91 121
2,348 92 (55)
Basic profit (loss) per
ordinary share (cents) 1
Profit (loss) from
continuing operations 642 - (130)
Profit from discontinued
operations - - 68
Profit (loss) 642 - (62)
Diluted profit (loss) per
ordinary share (cents) 2
Profit (loss) from
continuing operations 641 - (130)
Profit from discontinued
operations - - 68
Profit (loss) 641 - (62)
Six months Six months
ended ended
June June
2009 2008
Restated
SA Rand million Unaudited Unaudited
Revenue 13,641 14,813
Gold income 12,999 14,406
Cost of sales (10,833) (9,482)
Gain (loss) on non-hedge derivatives and other
commodity contracts 1,987 (7,024)
Gross profit (loss) 4,153 (2,099)
Corporate administration and other expenses (651) (473)
Market development costs (52) (48)
Exploration costs (465) (534)
Other operating expenses (102) (16)
Operating special items 679 355
Operating profit (loss) 3,562 (2,815)
Interest received 190 181
Exchange gain (loss) 301 (26)
Fair value adjustment on option component of
convertible bond (123) 183
Finance costs and unwinding of obligations (573) (466)
Share of equity accounted investments` profit
(loss) 383 (699)
Profit (loss) before taxation 3,739 (3,642)
Taxation (1,299) (323)
Profit (loss) after taxation from continuing
operations 2,440 (3,965)
Discontinued operations
Profit from discontinued operations - 188
Profit (loss) for the period 2,440 (3,777)
Allocated as follows:
Equity shareholders 2,305 (3,988)
Minority interest 135 211
2,440 (3,777)
Basic profit (loss) per ordinary share (cents) 1
Profit (loss) from continuing operations 643 (1,478)
Profit from discontinued operations - 67
Profit (loss) 643 (1,412)
Diluted profit (loss) per ordinary share (cents) 2
Profit (loss) from continuing operations 641 (1,478)
Profit from discontinued operations - 67
Profit (loss) 641 (1,412)
1 Calculated on the basic weighted average number of ordinary shares.
2 Calculated on the diluted weighted average number of ordinary shares.
Rounding of figures may result in computational discrepancies.
Group income statement
Quarter Quarter Quarter
ended ended ended
June March June
2009 2009 2008
US Dollar million Notes Unaudited Unaudited Unaudited
Revenue 2 814 689 1,023
Gold income 773 658 997
Cost of sales 3 (617) (568) (632)
Gain (loss) on non-hedge
derivatives and other
commodity contracts 4 231 20 (248)
Gross profit 387 111 117
Corporate administration
and other expenses (36) (35) (33)
Market development costs (3) (3) (3)
Exploration costs (29) (22) (34)
Other operating expenses 5 (6) (5) (6)
Operating special items 6 92 (6) 36
Operating profit (loss) 406 39 77
Interest received 11 10 13
Exchange gain (loss) 36 1 (3)
Fair value adjustment on
option component of
convertible bond (15) - 2
Finance costs and unwinding
of obligations (39) (25) (28)
Share of equity accounted
investments` profit (loss) 19 23 (97)
Profit (loss) before
taxation 418 48 (35)
Taxation 7 (113) (39) (61)
Profit (loss) after
taxation from continuing
operations 304 9 (96)
Discontinued operations
Profit from discontinued
operations - - 24
Profit (loss) for the period 304 9 (72)
Allocated as follows:
Equity shareholders 299 - (87)
Minority interest 5 9 15
304 9 (72)
Basic profit (loss) per
ordinary share (cents) 1
Profit (loss) from
continuing operations 83 - (39)
Profit from discontinued
operations - - 9
Profit (loss) 83 - (31)
Diluted profit (loss) per
ordinary share (cents) 2
Profit (loss) from
continuing operations 83 - (39)
Profit from discontinued
operations - - 9
Profit (loss) 83 - (31)
Six months Six months
ended ended
June June
2009 2008
Restated
US Dollar million Unaudited Unaudited
Revenue 1,503 1,929
Gold income 1,431 1,876
Cost of sales (1,185) (1,239)
Gain (loss) on non-hedge derivatives and other
commodity contracts 252 (620)
Gross profit 498 18
Corporate administration and other expenses (71) (62)
Market development costs (6) (6)
Exploration costs (51) (70)
Other operating expenses (11) (2)
Operating special items 86 47
Operating profit (loss) 445 (75)
Interest received 21 24
Exchange gain (loss) 38 (4)
Fair value adjustment on option component of
convertible bond (15) 24
Finance costs and unwinding of obligations (64) (61)
Share of equity accounted investments` profit
(loss) 41 (88)
Profit (loss) before taxation 465 (180)
Taxation (152) (46)
Profit (loss) after taxation from continuing
operations 313 (226)
Discontinued operations
Profit from discontinued operations - 24
Profit (loss) for the period 313 (202)
Allocated as follows:
Equity shareholders 299 (229)
Minority interest 14 27
313 (202)
Basic profit (loss) per ordinary share (cents) 1
Profit (loss) from continuing operations 83 (90)
Profit from discontinued operations - 8
Profit (loss) 83 (81)
Diluted profit (loss) per ordinary share (cents) 2
Profit (loss) from continuing operations 83 (90)
Profit from discontinued operations - 8
Profit (loss) 83 (81)
1 Calculated on the basic weighted average number of ordinary shares.
2 Calculated on the diluted weighted average number of ordinary shares.
Rounding of figures may result in computational discrepancies.
Group statement of comprehensive income
Quarter Quarter Quarter
ended ended ended
June March June
2009 2009 2008
SA Rand million Unaudited Unaudited Unaudited
Profit (loss) for the period 2,348 92 (55)
Exchange differences on translation
of foreign operations (2,401) 176 (526)
Net loss on cash flow hedges reported
in gold sales 322 530 523
Net gain (loss) on cash flow hedges 321 (171) 64
Hedge ineffectiveness on cash flow hedges 7 36 (15)
Realised gains (losses) on hedges of
capital items 36 (15) -
Deferred taxation thereon (176) (91) (156)
510 289 416
Net (loss) gain on available for sale
financial assets (47) 83 6
Release on disposal of available for
sale financial assets - - (6)
Deferred taxation thereon (1) (3) (1)
(48) 80 (1)
Actuarial loss recognised - - -
Deferred taxation thereon - - -
- - -
Other comprehensive (expense) income
for the period net of tax (1,939) 545 (111)
Total comprehensive income (expense)
for the period net of tax 409 637 (166)
Allocated as follows:
Equity shareholders 361 540 (293)
Minority interest 48 97 127
409 637 (166)
Six months Six months
ended ended
June June
2009 2008
Restated
SA Rand million Unaudited Unaudited
Profit (loss) for the period 2,440 (3,777)
Exchange differences on translation of foreign
operations (2,225) 4,173
Net loss on cash flow hedges reported in gold sales 852 1,017
Net gain (loss) on cash flow hedges 150 (763)
Hedge ineffectiveness on cash flow hedges 43 (2)
Realised gains (losses) on hedges of capital items 21 -
Deferred taxation thereon (267) (64)
799 188
Net (loss) gain on available for sale financial
assets 36 (67)
Release on disposal of available for sale
financial assets - (6)
Deferred taxation thereon (4) 16
32 (57)
Actuarial loss recognised - -
Deferred taxation thereon - (3)
- (3)
Other comprehensive (expense) income for the
period net of tax (1,394) 4,301
Total comprehensive income (expense) for the
period net of tax 1,046 524
Allocated as follows:
Equity shareholders 901 306
Minority interest 145 218
1,046 524
Rounding of figures may result in computational discrepancies.
Group statement of comprehensive income
Quarter Quarter Quarter
ended ended ended
June March June
2009 2009 2008
Restated Restated
US Dollar million Unaudited Unaudited Unaudited
Profit (loss) for the period 304 9 (72)
Exchange differences on translation
of foreign operations 290 (16) 72
Net loss on cash flow hedges reported
in gold sales 39 54 67
Net gain (loss) on cash flow hedges 33 (17) 10
Hedge ineffectiveness on cash flow hedges 2 3 (2)
Realised gains (losses) on hedges of
capital items 4 (2) -
Deferred taxation thereon (24) (9) (20)
54 29 55
Net (loss) gain on available for sale
financial assets (4) 8 -
Release on disposal of available for
sale financial assets - - (1)
Deferred taxation thereon - - -
(4) 8 (1)
Actuarial loss recognised - - -
Deferred taxation thereon - - -
- - -
Other comprehensive income (expense)
for the period net of tax 340 21 126
Total comprehensive income (expense)
for the period net of tax 644 30 54
Allocated as follows:
Equity shareholders 639 20 38
Minority interest 5 10 16
644 30 54
Six months Six months
ended ended
June June
2009 2008
Restated
US Dollar million Unaudited Unaudited
Profit (loss) for the period 313 (202)
Exchange differences on translation of foreign
operations 274 (76)
Net loss on cash flow hedges reported in gold sales 93 133
Net gain (loss) on cash flow hedges 16 (100)
Hedge ineffectiveness on cash flow hedges 5 -
Realised gains (losses) on hedges of capital items 2 -
Deferred taxation thereon (33) (8)
83 25
Net (loss) gain on available for sale financial assets 4 (9)
Release on disposal of available for sale
financial assets - (1)
Deferred taxation thereon - 2
4 (8)
Actuarial loss recognised - -
Deferred taxation thereon - -
- -
Other comprehensive income (expense) for the
period net of tax 361 (59)
Total comprehensive income (expense) for the
period net of tax 674 (261)
Allocated as follows:
Equity shareholders 659 (289)
Minority interest 15 28
674 (261)
Rounding of figures may result in computational discrepancies.
Group statement of financial position
As at As at
June March
2009 2009
SA Rand million Note Unaudited Unaudited
ASSETS
Non-current assets
Tangible assets 37,111 41,404
Intangible assets 1,264 1,408
Investments in associates and equity
accounted joint ventures 1,805 2,897
Other investments 820 704
Inventories 2,432 2,884
Trade and other receivables 696 716
Derivatives 15 -
Deferred taxation 390 477
Other non-current assets 31 36
44,564 50,525
Current assets
Inventories 5,212 5,877
Trade and other receivables 3,534 1,827
Derivatives 3,551 4,744
Current portion of other non-current assets 2 2
Cash restricted for use 487 443
Cash and cash equivalents 17,768 5,874
30,554 18,767
Non-current assets held for sale 669 9,104
31,223 27,871
TOTAL ASSETS 75,787 78,396
EQUITY AND LIABILITIES
Share capital and premium 10 37,547 37,513
Retained earnings and other reserves (13,570) (13,995)
Minority interests 792 893
Total equity 24,768 24,411
Non-current liabilities
Borrowings 12,857 9,147
Environmental rehabilitation and other
provisions 3,492 3,934
Provision for pension and post-retirement
benefits 1,279 1,299
Trade, other payables and deferred income 111 115
Derivatives 1,215 -
Deferred taxation 6,032 6,153
24,986 20,648
Current liabilities
Current portion of borrowings 7,846 9,745
Trade, other payables and deferred income 4,014 4,683
Derivatives 13,011 17,376
Taxation 1,098 803
25,969 32,607
Non-current liabilities held for sale 64 731
26,033 33,338
Total liabilities 51,019 53,986
TOTAL EQUITY AND LIABILITIES 75,787 78,396
Net asset value - cents per share 6,916 6,818
As at As at
December June
2008 2008
SA Rand million Unaudited Unaudited
ASSETS
Non-current assets
Tangible assets 41,081 53,040
Intangible assets 1,403 3,491
Investments in associates and equity accounted
joint ventures 2,814 2,447
Other investments 625 633
Inventories 2,710 2,445
Trade and other receivables 585 584
Derivatives - -
Deferred taxation 475 533
Other non-current assets 32 281
49,725 63,454
Current assets
Inventories 5,663 5,206
Trade and other receivables 2,076 1,847
Derivatives 5,386 4,810
Current portion of other non-current assets 2 2
Cash restricted for use 415 547
Cash and cash equivalents 5,438 3,661
18,980 16,072
Non-current assets held for sale 7,497 10
26,477 16,082
TOTAL ASSETS 76,202 79,536
EQUITY AND LIABILITIES
Share capital and premium 37,336 22,495
Retained earnings and other reserves (14,380) (5,931)
Minority interests 790 637
Total equity 23,746 17,200
Non-current liabilities
Borrowings 8,224 7,361
Environmental rehabilitation and other provisions 3,860 3,853
Provision for pension and post-retirement benefits 1,293 1,247
Trade, other payables and deferred income 99 68
Derivatives 235 350
Deferred taxation 5,838 7,925
19,549 20,804
Current liabilities
Current portion of borrowings 10,046 10,093
Trade, other payables and deferred income 4,946 12,437
Derivatives 16,426 18,126
Taxation 1,033 876
32,451 41,532
Non-current liabilities held for sale 456 -
32,907 41,532
Total liabilities 52,456 62,336
TOTAL EQUITY AND LIABILITIES 76,202 79,536
Net asset value - cents per share 6,643 6,101
Rounding of figures may result in computational discrepancies.
Group statement of financial position
As at As at
June March
2009 2009
Restated
US Dollar million Note Unaudited Unaudited
ASSETS
Non-current assets
Tangible assets 4,813 4,320
Intangible assets 164 147
Investments in associates and equity
accounted joint ventures 234 302
Other investments 106 73
Inventories 315 301
Trade and other receivables 90 75
Derivatives 2 -
Deferred taxation 51 50
Other non-current assets 4 4
5,780 5,271
Current assets
Inventories 676 613
Trade and other receivables 458 190
Derivatives 461 495
Current portion of other non-current assets - -
Cash restricted for use 63 46
Cash and cash equivalents 2,305 613
3,963 1,957
Non-current assets held for sale 87 950
4,050 2,907
TOTAL ASSETS 9,830 8,178
EQUITY AND LIABILITIES
Share capital and premium 10 5,508 5,503
Retained earnings and other reserves (2,398) (3,049)
Minority interests 103 93
Total equity 3,212 2,547
Non-current liabilities
Borrowings 1,668 954
Environmental rehabilitation and other
provisions 453 410
Provision for pension and post-retirement
benefits 166 135
Trade, other payables and deferred income 14 12
Derivatives 158 -
Deferred taxation 782 642
3,241 2,153
Current liabilities
Current portion of borrowings 1,018 1,017
Trade, other payables and deferred income 521 489
Derivatives 1,687 1,813
Taxation 142 84
3,368 3,402
Non-current liabilities held for sale 8 76
3,376 3,478
Total liabilities 6,617 5,631
TOTAL EQUITY AND LIABILITIES 9,830 8,178
Net asset value - cents per share 897 711
As at As at
December June
2008 2008
Restated Restated
US Dollar million Unaudited Unaudited
ASSETS
Non-current assets
Tangible assets 4,345 6,771
Intangible assets 148 446
Investments in associates and equity accounted
joint ventures 298 313
Other investments 66 81
Inventories 287 312
Trade and other receivables 62 75
Derivatives - -
Deferred taxation 50 68
Other non-current assets 3 36
5,259 8,101
Current assets
Inventories 599 665
Trade and other receivables 220 236
Derivatives 570 614
Current portion of other non-current assets - -
Cash restricted for use 44 70
Cash and cash equivalents 575 467
2,008 2,051
Non-current assets held for sale 793 1
2,801 2,052
TOTAL ASSETS 8,060 10,153
EQUITY AND LIABILITIES
Share capital and premium 5,485 3,624
Retained earnings and other reserves (3,057) (1,509)
Minority interests 83 81
Total equity 2,511 2,196
Non-current liabilities
Borrowings 870 940
Environmental rehabilitation and other provisions 408 492
Provision for pension and post-retirement benefits 137 159
Trade, other payables and deferred income 11 9
Derivatives 25 45
Deferred taxation 617 1,012
2,068 2,656
Current liabilities
Current portion of borrowings 1,063 1,288
Trade, other payables and deferred income 524 1,588
Derivatives 1,737 2,314
Taxation 109 112
3,433 5,301
Non-current liabilities held for sale 48 -
3,481 5,301
Total liabilities 5,549 7,957
TOTAL EQUITY AND LIABILITIES 8,060 10,153
Net asset value - cents per share 702 779
Rounding of figures may result in computational discrepancies.
Group statement of cashflows
Quarter Quarter Quarter
ended ended ended
June March June
2009 2009 2008
SA Rand million Unaudited Unaudited Unaudited
Cash flows from operating activities
Receipts from customers 6,928 6,404 7,991
Payments to suppliers and employees (5,135) (3,726) (7,352)
Cash generated from operations 1,793 2,678 639
Cash utilised by discontinued
operations - - (16)
Dividend received from equity
accounted investments 421 173 342
Taxation paid (340) (423) (430)
Cash utilised for hedge book
settlements - - (749)
Net cash inflow (outflow) from
operating activities 1,874 2,427 (215)
Cash flows from investing activities
Capital expenditure (2,189) (2,387) (2,348)
Proceeds from disposal of tangible
assets 7,156 17 21
Proceeds from disposal of assets of
discontinued operations - - 77
Other investments acquired (33) (160) (78)
Associates acquired (9) - -
Proceeds on disposal of associate - - 396
Associates` loans repaid 3 1 -
Proceeds from disposal of investments 60 165 105
Decrease (increase) in cash
restricted for use 10 (104) (119)
Interest received 88 98 99
Loans advanced (1) - -
Repayment of loans advanced 1 1 1
Net cash inflow (outflow) from
investing activities 5,086 (2,370) (1,846)
Cash flows from financing activities
Proceeds from issue of share capital 15 114 21
Share issue expenses (6) (4) -
Proceeds from borrowings 7,092 10,938 1,903
Repayment of borrowings (1,003) (10,135) (33)
Finance costs paid (245) (410) (30)
Advanced proceeds from rights offer - - 6
Dividends paid - (178) (49)
Net cash inflow from financing
activities 5,853 325 1,818
Net increase (decrease) in cash and
cash equivalents 12,813 382 (243)
Translation (919) 54 56
Cash and cash equivalents at
beginning of period 5,874 5,438 3,848
Cash and cash equivalents at end of
period 17,768 5,874 3,661
Cash generated from operations
Profit (loss) before taxation 3,263 476 225
Adjusted for:
Movement on non-hedge derivatives and
other commodity contracts (525) 1,621 (244)
Amortisation of tangible assets 1,095 1,261 1,102
Finance costs and unwinding of
obligations 322 252 213
Environmental, rehabilitation and
other expenditure (27) 16 (27)
Operating special items (733) 60 (273)
Amortisation of intangible assets 4 6 4
Deferred stripping (263) (313) 36
Fair value adjustment on option
components of convertible bond 123 - (12)
Interest receivable (92) (97) (101)
Share of equity accounted
investments` (profit) loss (160) (223) 770
Other non-cash movements (285) 84 134
Movements in working capital (928) (464) (1,189)
1,793 2,678 639
Movements in working capital
Decrease (increase) in inventories 1,153 (440) (677)
Decrease (increase) in trade and
other receivables 131 (337) (126)
(Decrease) increase in trade and
other payables (2,212) 313 (386)
(928) (464) (1,189)
Six months Six months
ended ended
June June
2009 2008
Restated
SA Rand million Unaudited Unaudited
Cash flows from operating activities
Receipts from customers 13,332 14,527
Payments to suppliers and employees (8,861) (12,025)
Cash generated from operations 4,471 2,502
Cash utilised by discontinued operations - (16)
Dividend received from equity accounted
investments 594 342
Taxation paid (764) (749)
Cash utilised for hedge book settlements - (774)
Net cash inflow (outflow) from operating
activities 4,301 1,305
Cash flows from investing activities
Capital expenditure (4,576) (4,265)
Proceeds from disposal of tangible assets 7,173 243
Proceeds from disposal of assets of discontinued
operations - 78
Other investments acquired (193) (344)
Associates acquired (9) -
Proceeds on disposal of associate - 396
Associates` loans repaid 3 31
Proceeds from disposal of investments 225 312
Decrease (increase) in cash restricted for use (94) (168)
Interest received 186 185
Loans advanced (1) (3)
Repayment of loans advanced 1 -
Net cash inflow (outflow) from investing
activities 2,716 (3,536)
Cash flows from financing activities
Proceeds from issue of share capital 130 86
Share issue expenses (11) -
Proceeds from borrowings 18,030 3,107
Repayment of borrowings (11,138) (187)
Finance costs paid (655) (280)
Advanced proceeds from rights offer - 6
Dividends paid (178) (202)
Net cash inflow from financing activities 6,178 2,531
Net increase (decrease) in cash and cash
equivalents 13,195 300
Translation (865) 115
Cash and cash equivalents at beginning of period 5,438 3,246
Cash and cash equivalents at end of period 17,768 3,661
Cash generated from operations
Profit (loss) before taxation 3,739 (3,642)
Adjusted for:
Movement on non-hedge derivatives and other
commodity contracts 1,095 5,036
Amortisation of tangible assets 2,356 2,122
Finance costs and unwinding of obligations 573 466
Environmental, rehabilitation and other
expenditure (11) 58
Operating special items (672) (355)
Amortisation of intangible assets 10 8
Deferred stripping (575) (154)
Fair value adjustment on option components of
convertible bond 123 (183)
Interest receivable (190) (181)
Share of equity accounted investments` (profit)
loss (383) 699
Other non-cash movements (202) 116
Movements in working capital (1,393) (1,489)
4,471 2,502
Movements in working capital
Decrease (increase) in inventories 713 (2,117)
Decrease (increase) in trade and other receivables (206) (512)
(Decrease) increase in trade and other payables (1,899) 1,140
(1,393) (1,489)
Rounding of figures may result in computational discrepancies.
Group statement of cashflows
Quarter Quarter Quarter
ended ended ended
June March June
2009 2009 2008
US Dollar million Unaudited Unaudited Unaudited
Cash flows from operating activities
Receipts from customers 811 646 1,026
Payments to suppliers and employees (575) (378) (937)
Cash generated from operations 236 268 89
Cash utilised by discontinued
operations - - (2)
Dividend received from equity
accounted investments 59 18 43
Taxation paid (40) (43) (56)
Cash utilised for hedge book
settlements - - (94)
Net cash inflow (outflow) from
operating activities 255 243 (20)
Cash flows from investing activities
Capital expenditure (257) (241) (303)
Proceeds from disposal of tangible
assets 893 2 3
Proceeds from disposal of assets of
discontinued operations - - 10
Other investments acquired (5) (16) (10)
Associates acquired (1) - -
Proceeds on disposal of associate - - 50
Associates` loans repaid - - -
Proceeds from disposal of investments 8 17 13
Decrease (increase) in cash
restricted for use 1 (10) (16)
Interest received 11 10 13
Loans advanced - - -
Repayment of loans advanced - - -
Net cash inflow (outflow) from
investing activities 650 (239) (241)
Cash flows from financing activities
Proceeds from issue of share capital 3 12 3
Share issue expenses (1) - -
Proceeds from borrowings 856 1,105 247
Repayment of borrowings (111) (1,024) (4)
Finance costs paid (31) (41) (3)
Advanced proceeds from rights offer - - 1
Dividends paid - (18) (6)
Net cash inflow from financing
activities 716 33 236
Net increase (decrease) in cash and
cash equivalents 1,621 37 (25)
Translation 71 1 16
Cash and cash equivalents at
beginning of period 613 575 475
Cash and cash equivalents at end of
period 2,305 613 467
Cash generated from operations
Profit (loss) before taxation 418 48 (35)
Adjusted for:
Movement on non-hedge derivatives and
other commodity contracts (81) 164 37
Amortisation of tangible assets 130 127 142
Finance costs and unwinding of
obligations 39 25 28
Environmental, rehabilitation and
other expenditure (3) 2 (3)
Operating special items (92) 6 (36)
Amortisation of intangible assets 1 1 -
Deferred stripping (31) (32) 3
Fair value adjustment on option
components of convertible bond 15 - (2)
Interest receivable (11) (10) (13)
Share of equity accounted
investments` (profit) loss (19) (23) 97
Other non-cash movements (36) 8 17
Movements in working capital (94) (49) (146)
236 268 89
Movements in working capital
Increase in inventories (74) (34) (115)
Increase in trade and other
receivables (44) (32) (23)
Increase (decrease) in trade and
other payables 24 17 (8)
(94) (49) (146)
Six months Six months
ended ended
June June
2009 2008
Restated
US Dollar million Unaudited Unaudited
Cash flows from operating activities
Receipts from customers 1,457 1,897
Payments to suppliers and employees (953) (1,593)
Cash generated from operations 504 304
Cash utilised by discontinued operations - (2)
Dividend received from equity accounted
investments 77 44
Taxation paid (83) (101)
Cash utilised for hedge book settlements - (94)
Net cash inflow (outflow) from operating
activities 498 151
Cash flows from investing activities
Capital expenditure (499) (558)
Proceeds from disposal of tangible assets 895 32
Proceeds from disposal of assets of discontinued
operations - 10
Other investments acquired (21) (45)
Associates acquired (1) -
Proceeds on disposal of associate - 50
Associates` loans repaid - 4
Proceeds from disposal of investments 25 41
Decrease (increase) in cash restricted for use (9) (23)
Interest received 20 23
Loans advanced - -
Repayment of loans advanced - -
Net cash inflow (outflow) from investing
activities 411 (466)
Cash flows from financing activities
Proceeds from issue of share capital 14 11
Share issue expenses (1) -
Proceeds from borrowings 1,961 407
Repayment of borrowings (1,135) (25)
Finance costs paid (72) (37)
Advanced proceeds from rights offer - 1
Dividends paid (18) (25)
Net cash inflow from financing activities 749 332
Net increase (decrease) in cash and cash
equivalents 1,658 16
Translation 72 (26)
Cash and cash equivalents at beginning of period 575 477
Cash and cash equivalents at end of period 2,305 467
Cash generated from operations
Profit (loss) before taxation 465 (180)
Adjusted for:
Movement on non-hedge derivatives and other
commodity contracts 84 365
Amortisation of tangible assets 258 278
Finance costs and unwinding of obligations 64 61
Environmental, rehabilitation and other
expenditure (1) 7
Operating special items (85) (47)
Amortisation of intangible assets 1 1
Deferred stripping (62) (20)
Fair value adjustment on option components of
convertible bond 15 (24)
Interest receivable (21) (24)
Share of equity accounted investments` (profit)
loss (41) 88
Other non-cash movements (28) 15
Movements in working capital (144) (217)
504 304
Movements in working capital
Increase in inventories (108) (164)
Increase in trade and other receivables (76) (39)
Increase (decrease) in trade and other payables 41 (14)
(144) (217)
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 -
restated 22,371 714 (5,524) (1,634)
(Loss) profit for the period (3,988)
Comprehensive income
(expense) 181
Total comprehensive
(expense) income - - (3,988) 181
Shares issued 124
Share-based payment for
share awards 186
Dividends paid (148)
Dividends of subsidiaries
Transfers to other reserves 12 (12)
Translation (3) (107)
Balance at June 2008 -
restated 22,495 909 (9,672) (1,560)
Balance at December 2008 -
restated 37,336 799 (22,879) (1,008)
Profit for the period 2,305
Comprehensive income
(expense) 789
Total comprehensive income
(expense) - - 2,305 789
Shares issued 211
Share-based payment for
share awards 70
Dividends paid (178)
Translation (11) 20
Balance at June 2009 37,547 858 (20,752) (199)
US Dollar million
Balance at December 2007 -
restated 3,608 105 (1,020) (240)
(Loss) profit for the period (229)
Comprehensive income
(expense) 24
Total comprehensive
(expense) income - - (229) 24
Shares issued 16
Share-based payment for
share awards 24
Dividends paid (18)
Dividends of subsidiaries
Transfers to other reserves 2 (2)
Translation (15) 17
Balance at June 2008 -
restated 3,624 116 (1,269) (199)
Balance at December 2008 -
restated 5,485 85 (2,368) (107)
Profit for the period 299
Comprehensive income 82
Total comprehensive income - - 299 82
Shares issued 23
Share-based payment for
share awards 8
Dividends paid (18)
Translation 18 (1)
Balance at June 2009 5,508 111 (2,087) (26)
Available Foreign
for Actuarial currency
sale (losses) translation
SA Rand million reserve gains reserve
Balance at December 2007 - restated 59 (108) 326
(Loss) profit for the period
Comprehensive income (expense) (57) (3) 4,173
Total comprehensive (expense) income (57) (3) 4,173
Shares issued
Share-based payment for share awards
Dividends paid
Dividends of subsidiaries
Transfers to other reserves
Translation (1) 2
Balance at June 2008 - restated 1 (109) 4,499
Balance at December 2008 - restated (18) (347) 9,073
Profit for the period
Comprehensive income (expense) 32 (2,225)
Total comprehensive income (expense) 32 - (2,225)
Shares issued
Share-based payment for share awards
Dividends paid
Translation 5 2
Balance at June 2009 19 (345) 6,848
US Dollar million
Balance at December 2007 - restated 9 (16) (67)
(Loss) profit for the period
Comprehensive income (expense) (8) (76)
Total comprehensive (expense) income (8) - (76)
Shares issued
Share-based payment for share awards
Dividends paid
Dividends of subsidiaries
Transfers to other reserves
Translation (1) 2
Balance at June 2008 - restated - (14) (143)
Balance at December 2008 - restated (2) (37) (628)
Profit for the period
Comprehensive income 4 274
Total comprehensive income 4 - 274
Shares issued
Share-based payment for share awards
Dividends paid
Translation - (8)
Balance at June 2009 2 (45) (354)
Minority Total
SA Rand million Total interests equity
Balance at December 2007 - restated 16,204 429 16,633
(Loss) profit for the period (3,988) 211 (3,777)
Comprehensive income (expense) 4,294 7 4,301
Total comprehensive (expense) income 306 218 524
Shares issued 124 124
Share-based payment for share awards 186 186
Dividends paid (148) (148)
Dividends of subsidiaries - (53) (53)
Transfers to other reserves - -
Translation (109) 43 (66)
Balance at June 2008 - restated 16,563 637 17,200
Balance at December 2008 - restated 22,956 790 23,746
Profit for the period 2,305 135 2,440
Comprehensive income (expense) (1,404) 10 (1,394)
Total comprehensive income (expense) 901 145 1,046
Shares issued 211 211
Share-based payment for share awards 70 70
Dividends paid (178) (178)
Translation 16 (143) (127)
Balance at June 2009 23,976 792 24,768
US Dollar million
Balance at December 2007 - restated 2,379 63 2,442
(Loss) profit for the period (229) 27 (202)
Comprehensive income (expense) (60) 1 (59)
Total comprehensive (expense) income (289) 28 (261)
Shares issued 16 16
Share-based payment for share awards 24 24
Dividends paid (18) (18)
Dividends of subsidiaries - (7) (7)
Transfers to other reserves - -
Translation 3 (3) -
Balance at June 2008 - restated 2,115 81 2,196
Balance at December 2008 - restated 2,428 83 2,511
Profit for the period 299 14 313
Comprehensive income 360 1 361
Total comprehensive income 659 15 674
Shares issued 23 23
Share-based payment for share awards 8 8
Dividends paid (18) (18)
Translation 9 5 14
Balance at June 2009 3,109 103 3,212
Rounding of figures may result in computational discrepancies.
Notes
for the quarter and six months ended 30 June 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 and six months ended 30 June 2009.
2. Revenue
Quarter ended Six months ended
Jun Mar Jun Jun Jun
2009 2009 2008 2009 2008
Restated
Unaudited Unaudited Unaudited Unaudited Unaudited
SA Rand million
Gold
income 6,481 6,518 7,749 12,999 14,406
By-products
(note 3) 244 208 100 452 226
Interest
received 92 97 101 190 181
6,817 6,824 7,950 13,641 14,813
Quarter ended Six months ended
Jun Mar Jun Jun Jun
2009 2009 2008 2009 2008
Restated
Unaudited Unaudited Unaudited Unaudited Unaudited
US Dollar million
Gold
income 773 658 997 1,431 1,876
By-products
(note 3) 30 21 13 51 29
Interest
received 11 10 13 21 24
814 689 1,023 1,503 1,929
3. Cost of sales
Quarter ended
Jun Mar Jun
2009 2009 2008
Unaudited Unaudited Unaudited
SA Rand million
Cash operating costs (4,280) (4,628) (3,864)
By-products revenue (note 2) 244 208 100
By-products cash operating costs (105) (96) (86)
(4,141) (4,516) (3,850)
Other cash costs (182) (207) (156)
Total cash costs (4,323) (4,723) (4,006)
Retrenchment costs (40) (14) (15)
Rehabilitation and other non-cash
costs (32) (59) (16)
Production costs (4,395) (4,796) (4,037)
Amortisation of tangible assets (1,095) (1,261) (1,102)
Amortisation of intangible assets (4) (6) (4)
Total production costs (5,495) (6,063) (5,143)
Inventory change 282 442 249
(5,212) (5,621) (4,894)
Six months ended
Jun Jun
2009 2008
Restated
Unaudited Unaudited
SA Rand million
Cash operating costs (8,909) (7,376)
By-products revenue (note 2) 452 226
By-products cash operating costs (201) (164)
(8,658) (7,314)
Other cash costs (389) (361)
Total cash costs (9,046) (7,675)
Retrenchment costs (55) (42)
Rehabilitation and other non-cash
costs (91) (119)
Production costs (9,192) (7,836)
Amortisation of tangible assets (2,356) (2,122)
Amortisation of intangible assets (10) (8)
Total production costs (11,558) (9,966)
Inventory change 725 484
(10,833) (9,482)
Quarter ended
Jun Mar Jun
2009 2009 2008
Unaudited Unaudited Unaudited
US Dollar million
Cash operating costs (507) (467) (498)
By-products revenue (note 2) 30 21 13
By-products cash operating costs (13) (10) (11)
(490) (456) (496)
Other cash costs (22) (21) (21)
Total cash costs (512) (477) (517)
Retrenchment costs (5) (1) (2)
Rehabilitation and other non-cash
costs (4) (6) (2)
Production costs (521) (484) (521)
Amortisation of tangible assets (130) (127) (142)
Amortisation of intangible assets (1) (1) -
Total production costs (652) (612) (663)
Inventory change 34 44 31
(617) (568) (632)
Six months ended
Jun Jun
2009 2008
Restated
Unaudited Unaudited
US Dollar million
Cash operating costs (976) (962)
By-products revenue (note 2) 51 29
By-products cash operating costs (22) (22)
(947) (955)
Other cash costs (42) (47)
Total cash costs (989) (1,003)
Retrenchment costs (6) (5)
Rehabilitation and other non-cash
costs (10) (15)
Production costs (1,005) (1,023)
Amortisation of tangible assets (258) (278)
Amortisation of intangible assets (1) (1)
Total production costs (1,264) (1,302)
Inventory change 79 63
(1,185) (1,239)
Rounding of figures may result in computational discrepancies.
4. Gain (loss) on non-hedge derivatives and other commodity contracts
Quarter ended
Jun Mar Jun
2009 2009 2008
Unaudited Unaudited Unaudited
SA Rand million
Gain (loss) on realised non-hedge
derivatives 1,243 1,867 (1,119)
Realised loss on other commodity
contracts - - (253)
Loss on accelerated settlement of
non-hedge derivatives - - (7,765)
Gain (loss) on unrealised non-hedge
derivatives 540 (1,662) 7,673
Unrealised gain on other commodity
physical borrowings - - 22
Provision reversed for gain on future
deliveries of other commodities - - 18
1,783 205 (1,425)
Six months ended
Jun Jun
2009 2008
Restated
Unaudited Unaudited
SA Rand million
Gain (loss) on realised non-hedge
derivatives 3,109 (1,278)
Realised loss on other commodity
contracts - (253)
Loss on accelerated settlement of
non-hedge derivatives - (7,765)
Gain (loss) on unrealised non-hedge
derivatives (1,122) 2,210
Unrealised gain on other commodity
physical borrowings - 25
Provision reversed for gain on future
deliveries of other commodities - 37
1,987 (7,024)
Quarter ended
Jun Mar Jun
2009 2009 2008
Unaudited Unaudited Unaudited
US Dollar million
Gain (loss) on realised non-hedge
derivatives 149 189 (142)
Realised loss on other commodity
contracts - - (32)
Loss on accelerated settlement of
non-hedge derivatives - - (979)
Gain (loss) on unrealised non-hedge
derivatives 82 (168) 899
Unrealised gain on other commodity
physical borrowings - - 3
Provision reversed for gain on future
deliveries of other commodities - - 2
231 20 (248)
Six months ended
Jun Jun
2009 2008
Restated
Unaudited Unaudited
US Dollar million
Gain (loss) on realised non-hedge
derivatives 338 (164)
Realised loss on other commodity
contracts - (32)
Loss on accelerated settlement of
non-hedge derivatives - (979)
Gain (loss) on unrealised non-hedge
derivatives (86) 547
Unrealised gain on other commodity
physical borrowings - 3
Provision reversed for gain on future
deliveries of other commodities - 5
252 (620)
5. Other operating expenses
Quarter ended
Jun Mar Jun
2009 2009 2008
Unaudited Unaudited Unaudited
SA Rand million
Pension and medical defined benefit
provisions (24) (24) (24)
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 (24) (26) (27)
Miscellaneous (3) - 3
(51) (50) (48)
Six months ended
Jun Jun
2009 2008
Restated
Unaudited Unaudited
SA Rand million
Pension and medical defined benefit
provisions (48) (48)
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 (51) 33
Miscellaneous (3) (1)
(102) (16)
Quarter ended
Jun Mar Jun
2009 2009 2008
Unaudited Unaudited Unaudited
US Dollar million
Pension and medical defined benefit
provisions (3) (2) (3)
Claims filed by former employees in
respect of loss of employment,
work-related accident injuries and
diseases, governmental fiscal
claims and costs of old tailings
operations (3) (3) (3)
Miscellaneous - - -
(6) (5) (6)
Six months ended
Jun Jun
2009 2008
Restated
Unaudited Unaudited
US Dollar million
Pension and medical defined benefit
provisions (5) (6)
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 (6) 5
Miscellaneous - (1)
(11) (2)
6. Operating special items
Quarter ended
Jun Mar Jun
2009 2009 2008
Unaudited Unaudited Unaudited
SA Rand million
Reimbursement (under provision) of
indirect tax expenses 12 (3) 49
Siguiri royalty payment calculation
dispute with the Guinean
Administration - - -
ESOP and BEE costs resulting
from rights offer - - (76)
Impairment of tangible assets (note 8) - - (1)
Loss on consignment stock (116) - -
Provision for bad debt - Pamodzi Gold (3) (63) -
Profit on disposal and abandonment
of land, mineral rights, tangible
assets and exploration properties
(note 8) (1) 839 6 272
Insurance claim recovery (note 8) 7 - -
Profit on disposal of investment in
associate (note 8) - - 29
739 (60) 273
Six months ended
Jun Jun
2009 2008
Restated
Unaudited Unaudited
SA Rand million
Reimbursement (under provision) of
indirect tax expenses 9 76
Siguiri royalty payment calculation
dispute with the Guinean
Administration - (27)
ESOP and BEE costs resulting
from rights offer - (76)
Impairment of tangible assets (note 8) - (3)
Loss on consignment stock (116) -
Provision for bad debt - Pamodzi Gold (66) -
Profit on disposal and abandonment
of land, mineral rights, tangible
assets and exploration properties
(note 8) (1) 844 356
Insurance claim recovery (note 8) 7 -
Profit on disposal of investment in
associate (note 8) - 29
679 355
Quarter ended
Jun Mar Jun
2009 2009 2008
Unaudited Unaudited Unaudited
US Dollar million
Reimbursement (under provision) of
indirect tax expenses 2 - 6
Siguiri royalty payment calculation
dispute with the Guinean
Administration - - -
ESOP and BEE costs resulting
from rights offer - - (10)
Impairment of tangible assets (note 8) - - -
Loss on consignment stock (15) - -
Provision for bad debt - Pamodzi Gold - (6) -
Profit on disposal and abandonment
of land, mineral rights, tangible
assets and exploration properties
(note 8) (1) 105 1 35
Insurance claim recovery (note 8) 1 - -
Profit on disposal of investment in
associate (note 8) - - 4
92 (6) 36
Six months ended
Jun Jun
2009 2008
Restated
Unaudited Unaudited
US Dollar million
Reimbursement (under provision) of
indirect tax expenses 1 10
Siguiri royalty payment calculation
dispute with the Guinean
Administration - (4)
ESOP and BEE costs resulting
from rights offer - (10)
Impairment of tangible assets (note 8) - -
Loss on consignment stock (15) -
Provision for bad debt - Pamodzi Gold (6) -
Profit on disposal and abandonment
of land, mineral rights, tangible
assets and exploration properties
(note 8) (1) 105 46
Insurance claim recovery (note 8) 1 -
Profit on disposal of investment in
associate (note 8) - 4
86 47
(1) AngloGold Ashanti concluded the sale of its indirect 33.3% joint venture
interest in the Boddington Gold Mine in Western Australia to Newmont Mining
Corporation resulting in a profit on disposal of $107m (R859m).
Rounding of figures may result in computational discrepancies.
7. Taxation
Quarter ended
Jun Mar Jun
2009 2009 2008
Unaudited Unaudited Unaudited
SA Rand million
South African taxation
Mining tax (108) - 252
Non-mining tax (126) (30) (5)
Under provision prior year (13) (16) (28)
Deferred taxation:
Temporary differences 12 (322) 890
Unrealised non-hedge derivatives
and other commodity contracts (238) 168 (1,458)
Change in statutory tax rate - - -
(473) (200) (349)
Foreign taxation
Normal taxation (1) (379) (137) (158)
(Under) over provision prior year (3) (11) -
Deferred taxation:
Temporary differences (155) (48) 121
Unrealised non-hedge derivatives
and other commodity contracts 94 13 (85)
(442) (183) (122)
Total taxation (915) (384) (471)
Six months ended
Jun Jun
2009 2008
Restated
Unaudited Unaudited
SA Rand million
South African taxation
Mining tax (108) -
Non-mining tax (156) (46)
Under provision prior year (29) (51)
Deferred taxation:
Temporary differences (310) 859
Unrealised non-hedge derivatives
and other commodity contracts (71) (746)
Change in statutory tax rate - 69
(673) 86
Foreign taxation
Normal taxation (1) (516) (336)
(Under) over provision prior year (14) 36
Deferred taxation:
Temporary differences (203) (17)
Unrealised non-hedge derivatives
and other commodity contracts 106 (92)
(626) (409)
Total taxation (1,299) (323)
Quarter ended
Jun Mar Jun
2009 2009 2008
Unaudited Unaudited Unaudited
US Dollar million
South African taxation
Mining tax (13) - 31
Non-mining tax (15) (3) (1)
Under provision prior year (2) (2) (4)
Deferred taxation:
Temporary differences 2 (33) 112
Unrealised non-hedge derivatives
and other commodity contracts (30) 17 (183)
Change in statutory tax rate - - -
(58) (20) (44)
Foreign taxation
Normal taxation (1) (46) (14) (21)
(Under) over provision prior year - (1) -
Deferred taxation:
Temporary differences (21) (5) 15
Unrealised non-hedge derivatives
and other commodity contracts 12 1 (11)
(55) (18) (16)
Total taxation (113) (39) (61)
Six months ended
Jun Jun
2009 2008
Restated
Unaudited Unaudited
US Dollar million
South African taxation
Mining tax (13) (1)
Non-mining tax (18) (7)
Under provision prior year (3) (6)
Deferred taxation:
Temporary differences (30) 108
Unrealised non-hedge derivatives
and other commodity contracts (13) (95)
Change in statutory tax rate - 9
(78) 8
Foreign taxation
Normal taxation (1) (59) (45)
(Under) over provision prior year (1) 5
Deferred taxation:
Temporary differences (26) (3)
Unrealised non-hedge derivatives
and other commodity contracts 13 (12)
(74) (54)
Total taxation (152) (46)
(1) Includes taxation of $25m (R200m) relating to the sale of its indirect
33.3% joint venture interest in the Boddington Gold Mine in Western Australia
to Newmont Mining Corporation.
8. Headline earnings (loss)
Quarter ended
Jun Mar Jun
2009 2009 2008
Unaudited Unaudited Unaudited
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 2,304 1 (176)
Impairment of tangible assets
(note 6) - - 1
Profit on disposal and abandonment
of land, mineral rights, tangible
assets and exploration properties
(note 6) (839) (6) (272)
Insurance claim recovery (note 6) (7) - -
Profit on disposal of investment in
associate (note 6) - - (29)
Profit on disposal of discontinued assets - - (217)
Impairment of investment in
associates 3 1 13
Loss (profit) on disposal of assets
in associate - - (23)
Taxation on items above - current
portion 201 4 3
Taxation on items above - deferred
portion (32) (1) (7)
Discontinued operations taxation on
items above - - (6)
Headline earnings (loss) 1,631 - (713)
Cents per share (1)
Headline earnings (loss) 455 - (252)
Six months ended
Jun Jun
2009 2008
Restated
Unaudited Unaudited
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 2,305 (3,988)
Impairment of tangible assets (note 6) - 3
Profit on disposal and abandonment
of land, mineral rights, tangible
assets and exploration properties (note 6) (844) (356)
Insurance claim recovery (note 6) (7) -
Profit on disposal of investment in
associate (note 6) - (29)
Profit on disposal of discontinued assets - (217)
Impairment of investment in associates 5 14
Loss (profit) on disposal of assets in associate - (23)
Taxation on items above - current portion 205 5
Taxation on items above - deferred portion (32) 4
Discontinued operations taxation on items above - (6)
Headline earnings (loss) 1,631 (4,593)
Cents per share (1)
Headline earnings (loss) 455 (1,626)
Quarter ended
Jun Mar Jun
2009 2009 2008
Unaudited Unaudited Unaudited
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 299 - (87)
Impairment of tangible assets
(note 6) - - -
Profit on disposal and abandonment
of land, mineral rights, tangible
assets and exploration properties
(note 6) (105) (1) (35)
Insurance claim recovery (note 6) (1) - -
Profit on disposal of investment in
associate (note 6) - - (4)
Profit on disposal of discontinued
assets - - (27)
Impairment of investment in associates - - 2
Loss (profit) on disposal of assets
in associate - - (3)
Taxation on items above - current
portion 26 1 -
Taxation on items above - deferred
portion (4) - (1)
Discontinued operations taxation on
items above - - (1)
Headline earnings (loss) 215 - (156)
Cents per share (1)
Headline earnings (loss) 60 - (55)
Six months ended
Jun Jun
2009 2008
Restated
Unaudited Unaudited
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 299 (229)
Impairment of tangible assets (note 6) - -
Profit on disposal and abandonment
of land, mineral rights, tangible
assets and exploration properties (note 6) (105) (46)
Insurance claim recovery (note 6) (1) -
Profit on disposal of investment in
associate (note 6) - (4)
Profit on disposal of discontinued assets - (27)
Impairment of investment in associates 1 2
Loss (profit) on disposal of assets in associate - (3)
Taxation on items above - current portion 25 1
Taxation on items above - deferred portion (4) -
Discontinued operations taxation on items above - (1)
Headline earnings (loss) 215 (307)
Cents per share (1)
Headline earnings (loss) 60 (109)
(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
Jun Mar Jun
2009 2009 2008
Unaudited Unaudited Unaudited
Authorised number of shares:
Ordinary shares of 25 SA cents
each 600,000,000 400,000,000 400,000,000
E ordinary shares of 25 SA
cents each 4,280,000 4,280,000 4,280,000
A redeemable preference shares
of 50 SA cents each 2,000,000 2,000,000 2,000,000
B redeemable preference shares
of 1 SA cent each 5,000,000 5,000,000 5,000,000
Issued and fully paid number of shares:
Ordinary shares in issue 354,241,602 354,135,912 277,894,808
E ordinary shares in issue 3,879,290 3,927,894 4,042,865
Total ordinary shares: 358,120,892 358,063,806 281,937,673
A redeemable preference shares 2,000,000 2,000,000 2,000,000
B redeemable preference shares 778,896 778,896 778,896
In calculating the diluted
number of ordinary shares
outstanding for the period, the
following were taken into
consideration:
Ordinary shares 354,198,056 353,635,884 277,825,711
E ordinary shares 3,896,280 3,940,464 4,064,751
Fully vested options 551,521 805,303 607,752
Weighted average number of
shares 358,645,857 358,381,651 282,498,214
Dilutive potential of share
options 897,098 - -
Diluted number of ordinary
shares (1) 359,542,955 358,381,651 282,498,214
Six months ended
Jun Jun
2009 2008
Unaudited Unaudited
Authorised number of shares:
Ordinary shares of 25 SA cents each 600,000,000 400,000,000
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 354,241,602 277,894,808
E ordinary shares in issue 3,879,290 4,042,865
Total ordinary shares: 358,120,892 281,937,673
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 353,918,523 277,742,234
E ordinary shares 3,918,250 4,093,776
Fully vested options 670,465 630,553
Weighted average number of shares 358,507,238 282,466,563
Dilutive potential of share options 907,306 -
Diluted number of ordinary shares (1) 359,414,544 282,466,563
(1) The basic and diluted number of ordinary shares is the same for the March
2009 quarter, June 2008 quarter and six months ended June 2008 as the effects
of shares for performance related options are anti-dilutive.
10. Share capital and premium
As at
Jun Mar
2009 2009
Unaudited Unaudited
SA Rand million
Balance at beginning of period 38,248 38,248
Ordinary shares issued 202 173
E ordinary shares cancelled (11) (5)
Sub-total 38,439 38,416
Redeemable preference shares
held within the group (313) (313)
Ordinary shares held within the group (264) (270)
E ordinary shares held within group (315) (321)
Balance at end of period 37,547 37,513
As at
Dec Jun
2008 2008
Unaudited Unaudited
SA Rand million
Balance at beginning of period 23,324 23,324
Ordinary shares issued 14,946 113
E ordinary shares cancelled (22) (12)
Sub-total 38,248 23,425
Redeemable preference shares
held within the group (313) (313)
Ordinary shares held within the group (273) (281)
E ordinary shares held within group (326) (335)
Balance at end of period 37,336 22,495
As at
Jun Mar
2009 2009
Restated
Unaudited Unaudited
US Dollar million
Balance at beginning of period 5,625 5,625
Ordinary shares issued 22 17
E ordinary shares cancelled (1) (1)
Sub-total 5,645 5,642
Redeemable preference shares
held within the group (53) (53)
Ordinary shares held within the group (38) (39)
E ordinary shares held within group (46) (47)
Balance at end of period 5,508 5,503
As at
Dec Jun
2008 2008
Restated Restated
Unaudited Unaudited
US Dollar million
Balance at beginning of period 3,752 3,752
Ordinary shares issued 1,875 15
E ordinary shares cancelled (3) (2)
Sub-total 5,625 3,765
Redeemable preference shares
held within the group (53) (53)
Ordinary shares held within the group (40) (40)
E ordinary shares held within group (47) (48)
Balance at end of period 5,485 3,624
11. Exchange rates
Jun Mar Dec Jun
2009 2009 2008 2008
Unaudited Unaudited Unaudited Unaudited
ZAR/USD average for the
year to date 9.18 9.90 8.25 7.64
ZAR/USD average for the
quarter 8.40 9.90 9.92 7.76
ZAR/USD closing 7.71 9.59 9.46 7.83
ZAR/AUD average for the
year to date 6.49 6.58 6.93 7.08
ZAR/AUD average for the
quarter 6.42 6.58 6.67 7.32
ZAR/AUD closing 6.21 6.60 6.57 7.54
BRL/USD average for the
year to date 2.20 2.31 1.84 1.70
BRL/USD average for the
quarter 2.07 2.31 2.28 1.65
BRL/USD closing 1.96 2.33 2.34 1.59
ARS/USD average for the
year to date 3.63 3.54 3.16 3.14
ARS/USD average for the
quarter 3.73 3.54 3.33 3.12
ARS/USD closing 3.80 3.71 3.45 3.03
Rounding of figures may result in computational discrepancies.
12. Capital commitments
Jun Mar Dec Jun
2009 2009 2008 2008
Unaudited Unaudited Unaudited Unaudited
SA Rand million
Orders placed and
outstanding on capital
contracts at the
prevailing rate of
exchange (1) 1,333 1,721 775 2,709
Jun Mar Dec Jun
2009 2009 2008 2008
Unaudited Unaudited Unaudited Unaudited
US Dollar million
Orders placed and
outstanding on capital
contracts at the
prevailing rate of
exchange (1) 173 180 82 346
(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 30 June 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 OroAfrica (Pty)
Ltd and one of its subsidiaries to a maximum value of R100m ($13m) (31 March
2009: R100m, $10m). The suretyship agreements have a termination notice period
of 90 days.
Rehabilitation obligation - Australia - With effect from 26 June 2009 the sales
agreement for the 33.3% Boddington joint venture (BJV) to Newmont Mining
Corporation (Newmont) was effective. The BJV operated tenements have
rehabilitation obligations and such obligations will cease when the tenements
titles are legally transferred to Newmont, as the sole owner of the BJV,
fulfils the rehabilitation obligation for the AngloGold Ashanti registered
tenements. Newmont has unconditionally and irrecoverably guaranteed the due and
punctual performance of the rehabilitation obligations and agreed to indemnify
AngloGold Ashanti for any claims or liabilities that may arise from the
AngloGold Ashanti registered tenements.
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 Goiais 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 Goiais, through a branch located in a different Brazilian State, it must
obtain an authorisation from the GoiaisState 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 $41m (31 March 2009: attributable $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 Goiais has appealed to the full board of the State of Goiai stax
administrative council. The second assessment was issued by the State of Goiais
in October 2006 on the same grounds as the first one, and the attributable
share of the assessment is approximately $25m (31 March 2009:
attributable $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 Goiais.
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 $8m (31 March 2009:
attributable $6m).
Tax Disputes - Brazil - Morro Velho, AngloGold Ashanti Brasil Mineracao,
Mineracao Serra Grande and Sao 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 $16m (31 March 2009: attributable $14m).
14. Concentration of risk
The previously reported concentration of risk relating to the reimbursable
value added tax and fuel duties due by the Government of Mali was addressed by
the protocol entered with the Government of Mali in March 2009 by the
management of Sadiola and Yatela. The protocol provides for the repayment of
the outstanding amounts audited to the end of June 2008. Management at Morila
continues to apply the provisions of the article in the establishment
convention which allows for the offset of taxes due against taxes payable.
At the end of June 2009 a total attributable amount of $16m (31 March 2009:
attributable $29m) was outstanding ($3m at Sadiola, $11m at Yatela and $2m at
Morila). Subsequent to the quarter end an attributable amount of $9m was
refunded to Yatela.
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
$17m at 30 June 2009 (31 March 2009: $16m). The last audited value added tax
return was for the period ended 31 May 2009 and at the balance sheet date was
$16m. The outstanding amounts at Geita have been discounted to their present
value at a rate of 7.8%.
- Reimbursable fuel duties from the Tanzanian government amounts to $44m at 30
June 2009 (31 March 2009: $39m). 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
$41m have been audited and lodged with the Customs and Excise authorities,
whilst claims for refund of $3m have not yet been lodged. The outstanding
amounts have been discounted to their present value at a rate of 7.8%.
15. Change in accounting 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.
In terms of IAS 21 "The Effects of Changes in Foreign Exchange Rates", the
group has previously presented equity at the closing rate of exchange. During
the current year the group changed its accounting policy to account for equity
using historical rates of exchange. Management`s judgement is that the change
in accounting policy will provide more relevant and reliable information when
the group is compared to its gold mining peers, as they report their equity at
historical rates of exchange. The effects of the change in accounting policy
have been calculated retrospectively and are as follows as at 31 December 2008
and 2007:
2008 2007
Share capital and premium - US Dollar million
Previously at closing rate 3,425 3,292
Restated at historical rate 3,752 3,713
Impact on translation 327 421
16. Borrowings
AngloGold Ashanti`s borrowing are interest bearing.
17. Post balance sheet events
During July 2009, AngloGold Ashanti continued executing on its previously
communicated board approved strategy to reduce its outstanding gold derivatives
position. The strength of the Company`s balance sheet and management`s view of
a robust macroeconomic environment for gold, resulted in the accelerated
settlement of certain outstanding gold derivative positions. These accelerated
settlements, together with the normal scheduled delivery for the second
quarter, reduced the total committed ounces to 4.45Moz at 25 July 2009, from
5.84Moz at 31 March 2009, the end of the first quarter. The restructure was
funded from available cashflows, resulting in a net cash outflow of
approximately $797m, which will be reflected in the Company`s financial
statements for the third quarter ending 30 September 2009.
The majority of the ounces affected by the abovementioned restructure were
designated as Normal Purchase Normal Sale Exempted (`NPSE`) contracts, allowing
them to be accounted for off balance sheet. As a consequence, International
Accounting Standard (`IAS`) 39 `Financial Instruments: Recognition and
measurement`, now require all of the contracts that were previously classified
as NPSE to be re-designated as non-hedge derivatives, accounted for at fair
value on the balance sheet with adjustments accounted for through the income
statement. Based on the fair values as at 30 June 2009, the income statement
impact of this re-designation is estimated to be approximately $1.1bn, of which
approximately $0.5bn remains unrealised as at 25 July 2009. The effects of this
re-designation will be reflected in the third quarter, ending 30 September
2009, financial statements.
18. Announcements
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 held on 15 May 2009, while Prof L W Nkuhlu resigned from
the board on 5 May 2009, following the filing with the SEC of its 2008 annual
report on Form 20-F.
On 18 May 2009, AngloGold Ashanti launched an offering of convertible bonds
issued by its wholly-owned subsidiary, AngloGold Ashanti Holdings Finance plc,
unconditionally and irrevocably guaranteed by AngloGold Ashanti Limited. The
net proceeds of the offering will be used to refinance AngloGold Ashanti`s debt
facilities and for general corporate purposes.
On 25 May 2009, AngloGold Ashanti announced that Professor Wiseman Nkuhlu would
re-join the board of AngloGold Ashanti, and was appointed chairman of the audit
and corporate governance committee, with effect from 1 June 2009.
On 25 May 2009, AngloGold Ashanti gave notice of the seismic events at its
Savuka mine in South Africa. A further announcement was made on 10 June 2009 in
which it was reported that the sub-shaft barrel below 100 level had been
damaged, together with shaft installations on 101 and 102 levels resulting in
only a low volume of production from the main shaft area for the remainder of
the second quarter.
On 10 June 2009, AngloGold Ashanti Limited and Thani Dubai Mining Limited
announced the formation of a strategic alliance to explore, develop and operate
mines across the Middle East and parts of North Africa. Each company will have
a 50 percent interest in the alliance which will explore for gold, precious and
base metals.
On 26 June 2009, AngloGold Ashanti announced that the sale of its 33.33 percent
interest in Boddington Gold Mine to Newmont Mining Corporation had been
completed. In terms of the agreement, as announced on 27 January 2009,
AngloGold Ashanti received payment of $750 million in cash. A further $240
million will be settled on 31 December 2009 by way of cash, or Newmont shares
or a combination of cash and shares. All refunds and reimbursements between the
Company and Newmont have been settled.
On 14 July 2009, AngloGold Ashanti announced that it had resumed the export of
gold from its Siguiri mine in Guinea. The Government of Guinea had placed a
temporary embargo on the export of gold for a month, which was lifted at the
end of June 2009. The company has agreed the advanced payment of $10 million to
the Government of the company`s future environmental rehabilitation
obligations, subject to an undertaking from the Government that the funds be
used solely for the environmental rehabilitation of the Siguiri Mine and that
the payment be offset against the balance of the company`s future environmental
liabilities.
On 16 July 2009 AngloGold Ashanti announced that it had entered into a series
of agreements with Randgold Resources Limited, which, upon the successful
closing of Randgold Resources` proposed acquisition of 100% of the issued share
capital and outstanding options and warrants of Moto Goldmines Limited, will
result in AngloGold Ashanti acquiring an indirect 50% interest in Moto for
approximately $244 million in cash plus a 50% share in certain other
transaction related liabilities and expenses. This was followed by a further
announcement on 27 July 2009 in which AngloGold Ashanti noted that Randgold had
entered into an irrevocable commitment to implement the proposed transaction.
The Moto board had determined that the proposed Randgold transaction
constituted a "superior proposal" to that made by Red Back Mining Inc on 1 June
2009 and amended effective 26 June 2009.
19. Dividend
The directors have today declared an Interim Dividend No. 106 of 60 (Interim
Dividend No. 104: 50) South African cents per ordinary share for the six months
ended 30 June 2009. In compliance with the requirements of Strate, given the
company`s primary listing on the JSE Limited, the salient dates for payment of
the dividend are as follows:
To holders of ordinary shares and to holders of CHESS Depositary Interests
(CDIs)
Each CDI represents one-fifth of an ordinary share.
2009
Currency conversion date for UK pounds, Australian
dollars and Ghanaian cedis Thursday, 13 August
Last date to trade ordinary shares cum dividend Friday, 14 August
Last date to register transfers of certificated
securities cum dividend Friday, 14 August
Ordinary shares trade ex dividend Monday, 17 August
Record date Friday, 21 August
Payment date Friday, 28 August
On the payment date, dividends due to holders of certificated securities on the
South African share register will either be electronically transferred to
shareholders` bank accounts or, in the absence of suitable mandates, dividend
cheques will be posted to such shareholders.
Dividends in respect of dematerialised shareholdings will be credited to
shareholders` accounts with the relevant CSDP or broker.
To comply with the further requirements of Strate, between Monday, 17 August
2009 and Friday, 21 August 2009, both days inclusive, no transfers between the
South African, United Kingdom, Australian and Ghana share registers will be
permitted and no ordinary shares pertaining to the South African share register
may be dematerialised or rematerialised.
To holders of American Depositary Shares
Each American Depositary Share (ADS) represents one ordinary share.
2009
Ex dividend on New York Stock Exchange Wednesday, 19 August
Record date Friday, 21 August
Approximate date for currency conversion Friday, 28 August
Approximate payment date of dividend Tuesday 8 September
Assuming an exchange rate of R7.8850/$, the dividend payable per ADS is
equivalent to 7.61 US cents. This compares with the final dividend of 4.99 US
cents per ADS paid on 23 March 2009. However the actual rate of payment will
depend on the exchange rate on the date for currency conversion.
To holders of Ghanaian Depositary Shares (GhDSs)
100 GhDSs represent one ordinary share.
2009
Last date to trade and to register GhDSs cum dividend Friday, 14 August
GhDSs trade ex dividend Monday, 17 August
Record date Friday, 21 August
Approximate payment date of dividend Monday, 31 August
Assuming an exchange rate of R1/Cents (USD)0.1890, the dividend payable per GhDS
is
equivalent to 0.1134 cedis. This compares with the final dividend of 0.06565
cedis per Ghanaian Depositary Share (GhDS) paid on 16 March 2009.
However, the actual rate of payment will depend on the exchange rate on the
date for currency conversion. In Ghana, the authorities have determined that
dividends payable to residents on the Ghana share register be subject to a
final withholding tax at a rate of 10%, similar to the rate applicable to
dividend payments made by resident companies which is currently at 10%.
In addition, directors declared Dividend No. E6 of 30 South African cents per E
ordinary share, payable to employees participating in the Bokamoso ESOP and
Izingwe Holdings (Proprietary) Limited. These dividends will be paid on Friday,
28 August 2009.
20. 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
29 July 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 * (Chief Financial Officer)
Non-Executive
R P Edey * (Chairman)
Dr T J Motlatsi (Deputy Chairman)
F B Arisman #
W A Nairn ##
Prof W L Nkuhlu ##
S M Pityana ##
* British # American
Australian ## South African
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: +1-212-836-4303
Mobile: +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
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: 31/07/2009 08:05:03 Produced by the JSE SENS Department.
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JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or
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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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