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ANG
ANANO
ANG - Anglogold Ashanti Limited - Report to shareholders for the quarter and
nine months ended 30 September 2009 - Group results for the quarter
ANGLOGOLD ASHANTI LIMITED
Registration No. 1944/017354/06
Incorporated in the Republic of South Africa
Share codes:
ISIN: ZAE000043485
JSE: ANG
LSE: AGD
NYSE: AU
ASX: AGG
GhSE (Shares): AGA
GhSE (GhDS): AAD
Euronext Paris: VA
Euronext Brussels: ANG
JSE Sponsor: UBS
Report to shareholders for the quarter and nine months ended 30 September 2009
Group results for the quarter
- Adjusted headlines earnings, normalised to exclude hedge buybacks, at $163m.
- Gold production rises 5% to 1.187Moz, following fewer safety interruptions.
- Uranium production rises 10% to 366,000 pounds.
- Total cash costs of $534/oz provide solid operating margin despite sharply
stronger operating currencies.
- Vaal River operations improve following management intervention.
- Geita and Ghana operations continue to deliver on turnaround strategy.
- South America delivers 9% growth in production, limits cost increases,
despite currency strength.
- Major hedge restructuring completed before recent gold price rally; committed
ounces now less than annual production at 4.3Moz.
Events post quarter-end....
- Annual guidance reviewed to 4.55Moz - 4.6Moz to factor in lower South African
production, following shaft incident at TauTona.
- Joint venture formed with De Beers to explore for marine gold deposits.
- Acquisition concluded for the purchase of 35% stake in Moto Gold Project.
Quarter
ended ended
Sep Jun
2009 2009
SA rand / Metric
Operating review
Gold
Produced - kg / oz(000) 36,925 35,050
Price received - R/kg / $/oz 61,095 241,505
Price received excluding hedge
buyback costs - R/kg / $/oz 225,388 241,505
Total cash costs - R/kg / $/oz 133,274 127,956
Total production costs - R/kg / $/oz 166,355 161,909
Financial review
Gross (loss) profit - Rm / $m (8,872) 3,051
Gross (loss) profit adjusted for the
(loss) gain on unrealised non-hedge
derivatives and other commodity
contracts - Rm / $m (4,110) 2,511
Adjusted gross profit excluding hedge
buyback costs - Rm / $m 2,205 2,511
(Loss) profit attributable to equity
shareholders - Rm / $m (8,245) 2,304
Headline (loss) earnings - Rm / $m (8,068) 1,631
Headline (loss) earnings adjusted for
the (loss) gain on unrealised non-hedge
derivatives and other commodity
contracts and fair value adjustments on
convertible bond - Rm / $m (4,757) 1,359
Capital expenditure - Rm / $m 1,842 2,228
(Loss) profit per ordinary share - cents/share
Basic (2,286) 642
Diluted (2,286) 641
Headline (2,237) 455
Headline (loss) earnings adjusted for
the (loss) gain on unrealised non-hedge
derivatives and other commodity
contracts and fair value adjustments on
convertible bond - cents/share (1,319) 379
Nine months
ended ended
Sep Sep
2009 2008
SA rand / Metric
Operating review
Gold
Produced - kg / oz(000) 106,282 115,530
Price received - R/kg / $/oz 185,498 100,660
Price received excluding hedge
buyback costs - R/kg / $/oz 245,364 174,646
Total cash costs - R/kg / $/oz 134,192 111,540
Total production costs - R/kg / $/oz 169,536 142,586
Financial review
Gross (loss) profit - Rm / $m (4,718) (1,248)
Gross (loss) profit adjusted for the
(loss) gain on unrealised non-hedge
derivatives and other commodity
contracts - Rm / $m 1,165 (4,187)
Adjusted gross profit excluding hedge
buyback costs - Rm / $m 7,480 3,831
(Loss) profit attributable to equity
shareholders - Rm / $m (5,940) (4,236)
Headline (loss) earnings - Rm / $m (6,437) (4,891)
Headline (loss) earnings adjusted for
the (loss) gain on unrealised non-hedge
derivatives and other commodity
contracts and fair value adjustments on
convertible bond - Rm / $m (1,917) (7,019)
Capital expenditure - Rm / $m 6,451 6,911
(Loss) profit per ordinary share - cents/share
Basic (1,653) (1,393)
Diluted (1,653) (1,393)
Headline (1,791) (1,609)
Headline (loss) earnings adjusted for
the (loss) gain on unrealised non-hedge
derivatives and other commodity
contracts and fair value adjustments on
convertible bond - cents/share (533) (2,309)
Quarter
ended ended
Sep Jun
2009 2009
US dollar / Imperial
Operating review
Gold
Produced - kg / oz(000) 1,187 1,127
Price received - R/kg / $/oz 261 897
Price received excluding hedge
buyback costs - R/kg / $/oz 906 897
Total cash costs - R/kg / $/oz 534 472
Total production costs - R/kg / $/oz 667 598
Financial review
Gross (loss) profit - Rm / $m (1,116) 387
Gross (loss) profit adjusted for the
(loss) gain on unrealised non-hedge
derivatives and other commodity
contracts - Rm / $m (510) 305
Adjusted gross profit excluding hedge
buyback costs - Rm / $m 287 305
(Loss) profit attributable to equity
shareholders - Rm / $m (1,042) 299
Headline (loss) earnings - Rm / $m (1,018) 215
Headline (loss) earnings adjusted for
the (loss) gain on unrealised non-hedge
derivatives and other commodity
contracts and fair value adjustments on
convertible bond - Rm / $m (596) 167
Capital expenditure - Rm / $m 232 261
(Loss) profit per ordinary share - cents/share
Basic (289) 83
Diluted (289) 83
Headline (282) 60
Headline (loss) earnings adjusted for
the (loss) gain on unrealised non-hedge
derivatives and other commodity
contracts and fair value adjustments on
convertible bond - cents/share (165) 47
Nine months
ended ended
Sep Sep
2009 2008
US dollar / Imperial
Operating review
Gold
Produced - kg / oz(000) 3,417 3,714
Price received - R/kg / $/oz 653 416
Price received excluding hedge
buyback costs - R/kg / $/oz 888 707
Total cash costs - R/kg / $/oz 485 451
Total production costs - R/kg / $/oz 612 576
Financial review
Gross (loss) profit - Rm / $m (618) 204
Gross (loss) profit adjusted for the
(loss) gain on unrealised non-hedge
derivatives and other commodity
contracts - Rm / $m 74 (509)
Adjusted gross profit excluding hedge
buyback costs - Rm / $m 871 501
(Loss) profit attributable to equity
shareholders - Rm / $m (743) (179)
Headline (loss) earnings - Rm / $m (803) (263)
Headline (loss) earnings adjusted for
the (loss) gain on unrealised non-hedge
derivatives and other commodity
contracts and fair value adjustments on
convertible bond - Rm / $m (279) (880)
Capital expenditure - Rm / $m 734 899
(Loss) profit per ordinary share - cents/share
Basic (207) (59)
Diluted (207) (59)
Headline (223) (87)
Headline (loss) earnings adjusted for
the (loss) gain on unrealised non-hedge
derivatives and other commodity
contracts and fair value adjustments on
convertible bond - cents/share (78) (289)
$ represents US dollar, unless otherwise stated.
Rounding of figures may result in computational discrepancies.
Operations at a glance
for the quarter ended 30 September 2009
Production Total cash costs
% %
oz (000) Variance 1 $/oz Variance 1
SOUTHERN AFRICA 483 7 525 18
South Africa
Great Noligwa 42 8 916 29
Kopanang 92 39 442 (1)
Moab Khotsong 62 32 478 10
Tau Lekoa 31 11 797 6
Surface Operations 40 (5) 406 27
Mponeng 125 (11) 375 23
Savuka 1 (92) 9,847 1,342
TauTona 74 21 501 14
Namibia
Navachab 16 23 615 (15)
CONTINENTAL AFRICA 391 1 615 9
Ghana
Iduapriem 52 11 493 (7)
Obuasi 92 (9) 671 14
Guinea
Siguiri - Attributable
85% 79 (1) 500 11
Mali
Morila - Attributable
40% 2 32 (6) 559 9
Sadiola - Attributable
38% 2 32 (9) 532 9
Yatela - Attributable
40% 2 22 (12) 219 (43)
Tanzania
Geita 83 32 883 1
Minorities, exploration
and other
AUSTRALIA 102 9 655 28
Sunrise Dam 102 9 647 29
Exploration and other
SOUTH AMERICA 157 9 349 7
Argentina
Cerro Vanguardia -
Attributable 92.50% 47 (8) 336 (2)
Brazil
AngloGold Ashanti Brasil
Mineracao 90 23 333 16
Serra Grande -
Attributable 50% 20 - 445 9
Minorities, exploration
and other
NORTH AMERICA 54 4 406 12
United States
Cripple Creek & Victor 54 4 394 12
Other
OTHER
Sub-total 1,187 5 534 13
Less equity accounted
investments
AngloGold Ashanti
Adjusted gross profit (loss)
excluding hedge buyback
costs
$m
$m Variance 1
SOUTHERN AFRICA 118 (25)
South Africa
Great Noligwa (7) (6)
Kopanang 27 12
Moab Khotsong 8 3
Tau Lekoa 3 -
Surface Operations 21 (3)
Mponeng 60 (19)
Savuka (11) (11)
TauTona 15 (2)
Namibia
Navachab 3 1
CONTINENTAL AFRICA 82 4
Ghana
Iduapriem 16 1
Obuasi 8 (2)
Guinea
Siguiri - Attributable 85% 26 11
Mali
Morila - Attributable 40% 2 11 (2)
Sadiola - Attributable 38% 2 10 (6)
Yatela - Attributable 40% 2 14 1
Tanzania
Geita (8) -
5 1
Minorities, exploration and other
AUSTRALIA 11 (17)
Sunrise Dam 12 (17)
(1) -
Exploration and other
SOUTH AMERICA 87 20
Argentina
Cerro Vanguardia - Attributable 92.50% 29 11
Brazil
AngloGold Ashanti Brasil Mineracao 41 6
Serra Grande - Attributable 50% 7 -
10 3
Minorities, exploration and other
NORTH AMERICA 21 (2)
United States
Cripple Creek & Victor 22 (2)
Other (1) -
OTHER 2 (6)
Sub-total 321 (26)
Less equity accounted investments (35) 7
AngloGold Ashanti 287 (18)
1 Variance September 2009 quarter on June 2009 quarter - increase (decrease).
2 Equity accounted investments.
Rounding of figures may result in computational discrepancies.
Financial and Operating Report
OVERVIEW FOR THE QUARTER
SAFETY
Safety remained AngloGold Ashanti`s highest priority, with management`s efforts
focused on recovering from a poor performance in the second quarter. Four
miners tragically lost their lives during the quarter in two separate accidents
at Mponeng and one each at TauTona and Great Noligwa. The rigorous
implementation of existing safety protocols and targeted interventions at the
Vaal River operations helped lower the number of fatalities by half. However,
much work still needs to be done to eliminate these accidents altogether. The
12% decline in the lost time injury frequency rate in the first nine months of
this year is an encouraging achievement and testament to our drive toward
continued improvements to safety on our operations.
The strategy of analysing and providing intensive support to teams with the
poorest safety performance on the company`s South African operations is
continuing. In addition to this short-term intervention, AngloGold Ashanti
remains committed to the implementation early next year of its Safety
Transformation blueprint, which is aimed at achieving the next quantum
improvement in safety performance. Sadiola, Yatela, Geita and Navachab reported
no lost-time injuries during the quarter.
Thirty full and eighteen partial production shifts were lost at the company`s
South African mines during the quarter due to safety related stoppages.
Government inspectors and AngloGold Ashanti`s mine managers continue to apply
safety regulations more aggressively than in the past, with a commensurate
impact on gold production. Post quarter-end, AngloGold Ashanti`s management
initiated a stoppage at TauTona to conduct a shaft inspection after a length of
steel fell down a shaft at the mine. A decision was subsequently taken to
suspend all operations at the mine pending a thorough inspection of all
steelwork along the full length of the shaft systems, to prevent a recurrence
of this incident. TauTona could potentially be closed until the end of this
year while this remedial action is completed. The impact of this interruption
will affect full-year production and has resulted in a revision of our annual
guidance.
OPERATING REVIEW
Production rose 5% from the previous quarter to 1.187Moz, broadly in line with
the guidance of 1.2Moz. Total cash costs rose 13% to $534/oz. Given the average
exchange rate of R7.77/$, this is within AngloGold Ashanti`s quarterly guidance
issued in July.
Stronger operating currencies in key regions continued to erode the benefit of
a stronger bullion price. The Brazilian real gained 10% on average against the
US dollar during the quarter compared with a 9% strengthening in both the
Australian dollar and South African rand. This lowered the gold price in those
currencies and pushed dollar-denominated costs higher, placing pressure on
operating margins.
The third quarter also saw winter power tariffs compounded by the introduction
of a 31.3% annual power-price increase in South Africa. Eskom Holdings Limited,
the state-owned utility, has announced that it will petition the National
Energy Regulator to raise prices annually by a further 45% until 2012 to fund
the construction of new power generation capacity. Should Eskom`s request be
granted, pressure will be placed on the cost structure of AngloGold Ashanti`s
South African operations which currently account for 40% of annual production.
Southern African operations produced 483,000oz in the three months ending
September at a total cash cost of $525/oz, compared with 450,000oz at $444/oz
in the previous quarter. Fewer safety stoppages helped increase production from
the Vaal River region. Costs were impacted by the higher electricity prices,
the stronger rand and the introduction of higher labour costs following the
wage settlement reached during the previous quarter. Among the West Wits
operations, Mponeng`s output declined after stoppages related to the two
accidents at the mine, while Savuka`s production was halted as work continued
to repair underground infrastructure damaged by the seismic event that occurred
in May.
Continental Africa`s production was largely unchanged at 391,000oz, while total
cash costs rose 9% to $615/oz. The operational turnaround at Geita continued
under the new management team where production increased by 32%, mainly as a
result of higher grades. Costs at the operation were in line with the planned
increase in fleet maintenance and the initial costs related to the rollout of
AngloGold Ashanti`s business improvement initiatives.
In Ghana, operational improvements continued with Iduapriem registering an 11%
increase in gold production after last quarter`s mill maintenance. Improved
grade management at Obuasi limited the production decline caused by heavy rains
and flooding, to 9%. Lower grades at Sadiola and fewer tons processed at
Yatela, lowered production from Mali, which was in line with mine plans.
The South American operations continued to build on their turnaround success of
the past year. Production rose by 9% to 157,000oz at a total cash cost of
$349/oz. In Argentina, Cerro Vanguardia mitigated the impact of a planned drop
in gold production with higher realised prices for its silver by-product.
Higher tonnes treated and improved grades helped boost output at AngloGold
Ashanti Brasil Mineracao.
In the United States, Cripple Creek & Victor reported a 4% increase in
production due to pad phase timing while total costs rose 12%. In Australia,
production rose by 9% from the previous quarter due to increased tonnage and
yield.
FINANCIAL AND CORPORATE REVIEW
Adjusted headline earnings, excluding the cost of the hedge buybacks concluded
during the quarter, were US$163m, which was broadly in line with last quarter`s
record adjusted headline earnings of $167m. The adjusted headline loss for the
quarter, after taking into account the cost of the hedge buybacks, was $596m,
or 165 US cents per share.
The realised gold price for the quarter was $261/oz, following the
restructuring of the hedge book which was done at a cost of $797m. The realised
price would have been $906/oz, a 6% discount to the average spot price for the
period, were it not for this cost. Management has targeted an average 7%
discount to spot gold prices over the remainder of the life of the hedge book
at a gold price of $950/oz in real terms and assumed production profile of 5Moz
a year.
The accelerated buyback of certain gold derivative positions, along with normal
deliveries into contracts, reduced the total committed ounces in the hedge book
to 4.3Moz at the end of the quarter, from 5.19Moz at the end of June and is
expected to reach 4.1Moz at year end. Thereafter, the hedge book is expected to
diminish by about 800,000oz per year through to 2014, by which time it will be
largely depleted. Following the recent buybacks, the fair value of the entire
hedge book is now included in the financial statements.
During the quarter, AngloGold Ashanti raised equity, to fund its 50% stake in
Moto Goldmines Limited. This share sale was part of the company`s strategy to
pay for a large gold resource with long-term development potential, with
longer-term financing, while maintaining balance-sheet flexibility.
EXPLORATION
Total exploration spending during the quarter was $55m, an increase of 28% over
the previous quarter.
Expenditure increased in Colombia, where activity is gearing up in anticipation
of the conclusion of public appeals related to exploration permits awarded
during the previous quarter. Regional exploration in Canada and Australia, as
well as the initiation of the feasibility study on the Tropicana project also
contributed to the increase in spending. Subsequent to the end of the third
quarter, AngloGold Ashanti concluded an agreement to cooperate with De Beers,
one of the world`s largest marine miners, in the search for gold ore bodies on
the ocean floor.
OUTLOOK
AngloGold Ashanti has revised its annual guidance to 4.55 to 4.6Moz, reflecting
the lower South African production. Full-year 2009 total cash costs are
expected to be between $515/oz and $530/oz assuming an average exchange rate of
between R7.00/$ and R7.50/$ during the fourth quarter. Production in the fourth
quarter is estimated at 1.160Moz at a total cash cost of $590/oz assuming an
exchange rate of R7.50/$.
Fourth quarter adjusted headline earnings could be, as in previous years,
distorted by year-end accounting adjustments (these could include amongst
others, the reassessment of asset useful lives, rehabilitation, current and
deferred tax and inventory provisions).
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 MOVEMENT AND INVESTMENT MARKETS
Gold price data
The third quarter continued the trend of strong gold prices experienced
throughout the year, averaging $959/oz, or 4% higher than the average for the
prior three-month period. Gold traded above the psychological $1,000/oz level
for seven consecutive days and averaged $997/oz for the final month of the
quarter.
Bullion`s fortunes once again closely tracked those of the US dollar, with both
range bound during the period.
This is a typical feature of financial markets during the third quarter due to
the summer holiday period in North America and Europe. However, the general
theme of accumulation of risk assets continued through this quiet period as
global stock markets continued their rally.
During July and August, investment demand as demonstrated by major ETF holdings
saw a net sale of 0.77Moz. The COMEX position was stable at around 21Moz net
long for the same period. This all changed abruptly at the beginning of
September, however, with a $50/oz rally despite little change in the US dollar.
The surge attracted a flurry of speculative investors as the COMEX net long
position leapt to an unprecedented level of 29Moz, eclipsing the previous
record of 27Moz. The subsequent increase to 31Moz helped sustain the period of
successive closes above $1,000/oz.
The quarter concluded with another G20 meeting. The statement from the
Pittsburgh meeting was reassuring as delegates concluded that recovery efforts
of various governments are proving effective and that recovery has taken hold.
The market, however, requires clarity on how governments are planning to
neutralize liquidity provided through various quantitative easing programmes.
Until there is clarity, confidence will remain fragile.
Official sector activity
The third Central Bank Agreement, signed on 7 August, was implemented on 27
September and stipulated a reduced annual sales quota from 500 to 400 tonnes a
year. Analysts are sceptical that the full allotment will be sold given that
1,883 tonnes were sold under the second agreement, which is 117 tonnes less
than the volume sold under the first agreement.
The IMF Executive Board in September approved the sale of 403 tonnes of gold,
which it had initially flagged to the market in the first quarter of this year.
The IMF is not a signatory to the third Central Bank agreement, but has
stressed that the sale will not disrupt the market. It would not be surprising
to see an off-market transaction concluded as part of the process.
Producer hedging
Gold producers were once again actively de-hedging during the quarter. After
AngloGold Ashanti announced its own restructuring programme at the end of July,
Gold Fields unwound the royalty agreement on its Australian operation in early
September. In the same month, Barrick announced its intention to unwind its
project sales hedge book.
Currencies
The Rand continued to strengthen against the US dollar particularly during
September. The strength coincided with the increase in the price of gold and
other commodity producing currencies and heightened optimism of a major
telecommunications deal and the resulting inflow of hard currency to South
Africa. The Rand strengthened on average by 8% against the US dollar over the
quarter, but gave up some of these gains when talks around the mobile phone
deal were abandoned.
The Australian dollar averaged 8% stronger against the dollar over this quarter
on the back of higher gold and commodity prices, but also as a consequence of
the effective manner in which the Australian government is perceived to have
managed its economy throughout the financial crisis. Swift action in cutting
interest rates at the start of the crisis has seen Australia weather the storm
relatively well and the outlook for its economy looks robust.
The Brazilian real has been one of the best performing emerging market
currencies against the US dollar, strengthening 24% since the start of the
year. In the quarter under review, it strengthened 10%.
PHYSICAL DEMAND
Jewellery sales
Almost all of the world`s key markets for physical gold continue to be
depressed by the effects of the global financial crisis. China is the only
major market to buck the trend.
India`s gold market remains under pressure after 20% gains over the past year
in the Rupee-denominated gold price. Between June and September, gold jewellery
consumption fell 22% compared with the same period a year earlier. Spurred by
the financial crisis, urban consumers are entrusting cash to bank deposits,
which are up 32% over 2008 levels. News is somewhat more positive in most rural
areas where gold demand remains relatively stable and in some regions shows
modest growth. Thus far, scrap activity during the third quarter has been
slight as the market appears to be anticipating further gold price increases.
The impact of the global recession on China`s gold market remains milder than
in all other major economies.
Domestic consumption is resilient and the psychological reaction to the crisis
remains markedly more bullish than in other markets. Demand for traditional 24
carat gold jewellery continues to grow year on year, albeit it at a modest
level while offtake of 18 carat gold jewellery remains flat. This shows the
investment case for pure gold jewellery continues to hold sway with the Chinese
consumer.
The US gold jewellery market has continued its quarter-on-quarter decline as
jewellery still leads the list of discretionary spend items to be cut during
the recession. Primary value gold jewellery sales in the first half were down
12% year-on-year. While the rate of decline is decreasing, the second half of
last year was particularly weak as the crisis unfolded in the US. Major players
through the retail value chain continue to close outlets or file for bankruptcy
protection. Closures and forced consolidation may help the jewellery industry
recover more quickly and remain stronger once the recession ends.
The jewellery sector in the Middle East remains under pressure in the third
quarter. Egypt, which had been bucking negative trends in the first half of the
year saw an 8-10% decrease in third-quarter jewellery sales compared with a
particularly strong quarter a year earlier. Matters are worse in the Kingdom of
Saudi Arabia (KSA) with a 25-30% drop in demand in the third quarter. Gold
price volatility caused consumers who tend to time their purchases on their
view of the price, to delay purchases. In the United Arab Emirates, an
anticipated third quarter recovery did not materialise with jewellery tonnage
down 20-23%. With its heavy reliance on tourism and local expatriate
consumption, the UAE continues to bear the full brunt of the financial crisis
in the Middle East. The gold market in Turkey shows a glimmer of hope with
exchange rates stabilizing and the stock market posting gains.
Investment market
The negative data on gold jewellery consumption have been mitigated somewhat by
further good news on investment demand. Global investment activity for gold
remains strong and the market has stayed buoyant despite rising prices. In
India, investment purchases are on the rise in major cities, while in the
Middle East bar and coin sales in the gulf, excluding UAE and KSA, are up 7%.
In Turkey, new-coin minting is up to 11 tonnes in July and August and the third
quarter will show growth quarter on quarter, though levels will not match those
of the same period last year. The US market continues to experience robust
investment demand with bar, coin and ETF demand still rising.
Hedge position
As at 30 September 2009, the net delta hedge position was 3.93Moz or 122t (at
30 June 2009: 4.41Moz or 137t), representing a further reduction of 0.48Moz for
the quarter. The total commitments of the hedge book as at 30 September 2009
was 4.3Moz or 134t, a reduction of 0.89Moz from the position as at 30 June
2009.
The marked-to-market value of all hedge transactions making up the hedge
positions was a negative $1.84bn (negative R13.83bn), decreasing by $0.47bn
(R4.01bn) over the quarter. This value was based on a gold price of $1,006/oz,
exchange rates of R7.51/$ and A$/$0.88 and the prevailing market interest rates
and volatilities at that date.
As at 28 October 2009, the marked-to-market value of the hedge book was a
negative $1.94bn (negative R15bn), based on a gold price of $1,036.80/oz and
exchange rates of R7.73/$ and A$/$0.91 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 theoretical cost of buying all hedge contracts at the
time of valuation, at market prices and rates available at the time.
During the quarter, deals to the value of $797m were accelerated and closed out
in July 2009 which included deals that were designated as normal sale exempted
and previously held off balance sheet. Of these, $580m was cash settled and a
further $217m was also incurred in accelerating the cash settlement of existing
non-hedge derivative contracts. The cash settlement of the former resulted in
the remaining normal sale exempted designated contracts having to be
re-designated as non-hedge derivatives and recorded on the balance sheet at
fair value with changes in fair value accounted for in the income statement.
During July 2009 the impact of the related re-designation of normal sales
exempted contracts after the buyback of $797m on the financial statements is an
increase in non-hedge derivative liabilities of $558m.
The following table indicates the group`s commodity hedge position at 30
September 2009
Year 2009 2010
US DOLLAR GOLD
Forward contracts Amount (oz) 7,963 *(245,142)
US$/oz **($5,228) $753
Put options sold Amount (oz) 150,000 235,860
US$/oz $762 $747
Call options sold Amount (oz) 250,000 1,025,380
US$/oz $888 $602
A DOLLAR GOLD
Forward contracts Amount (oz) 40,000 100,000
A$/oz A$595 A$706
Call options purchased Amount (oz) 40,000 100,000
A$/oz A$694 A$712
*** Total net gold: Delta (oz) (234,658) (701,340)
Committed (oz) (257,963) (780,238)
Year 2011 2012
US DOLLAR GOLD
Forward contracts Amount (oz) 60,000 122,500
US$/oz $227 $418
Put options sold Amount (oz) 148,000 85,500
US$/oz $623 $538
Call options sold Amount (oz) 776,800 811,420
US$/oz $554 $635
A DOLLAR GOLD
Forward contracts Amount (oz)
A$/oz
Call options purchased Amount (oz)
A$/oz
*** Total net gold: Delta (oz) (769,538) (843,700)
Committed (oz) (836,800) (933,920)
Year 2013 2014-2015 Total
US DOLLAR GOLD
Forward
contractsAmount (oz) 119,500 91,500 156,321
US$/oz $477 $510 $370
Put options
sold Amount (oz) 60,500 60,500 740,360
US$/oz $440 $450 $652
Call options
sold mount (oz) 574,120 709,470 4,147,190
US$/oz $601 $606 $617
A DOLLAR GOLD
Forward
contractsAmount (oz) 140,000
A$/oz A$674
Call options
purchased Amount (oz) 140,000
A$/oz A$707
*** Total net
gold: Delta (oz) (642,021) (734,171) (3,925,428)
Committed (oz) (693,620) (800,970) (4,303,511)
* Represents a net long position resulting from both forward sales and
purchases.
** Represents a net short position and net short US Dollars resulting from both
forward sales and purchases for the period.
*** The Delta of the hedge position indicated above is the equivalent gold
position that would have the same marked-to-market sensitivity for a small
change in the gold price. This is calculated using the Black-Scholes option
formula with the ruling market prices, interest rates and volatilities as at 30
September 2009.
Rounding of figures may result in computational discrepancies.
The following table indicates the group`s currency hedge position at 30
September 2009
Year 2009 2010 2011 2012
RAND DOLLAR (000)
Put options purchased Amount ($) 40,000
US$/R R11.35
Put options sold Amount ($) 40,000
US$/R R9.59
Call options sold Amount ($) 40,000
US$/R R12.94
A DOLLAR (000)
Forward contracts Amount ($) 20,000
A$/US$ A$0.64
BRAZILIAN REAL (000)
Forward contracts Amount ($) 19,500
US$/BRL BRL 2.07
Year 2013 2014-2015 Total
RAND DOLLAR (000)
Put options purchased Amount ($) 40,000
US$/R R11.35
Put options sold Amount ($) 40,000
US$/R R9.59
Call options sold Amount ($) 40,000
US$/R R12.94
A DOLLAR (000)
Forward contracts Amount ($) 20,000
A$/US$ A$0.64
BRAZILIAN REAL (000)
Forward contracts Amount ($) 19,500
US$/BRL BRL 2.07
Fair value of derivative analysis by accounting designation at 30 September
2009
Figures in millions Cash flow hedge Non-hedge Total
accounted accounted
US Dollar
Commodity option contracts - (1,613) (1,613)
Foreign exchange option contracts - 9 9
Forward sale commodity contracts (47) (213) (260)
Forward foreign exchange contracts - 11 11
Interest rate swaps - (17) (17)
Total hedging contracts (47) (1,823) (1,870)
Option component of convertible
bond - (166) (166)
Total derivatives (47) (1,989) (2,036)
Credit risk adjustment - (145) (145)
Total derivatives - before credit
risk adjustment (47) (2,134) (2,181)
Rounding of figures may result in computational discrepancies.
Exploration
Total exploration expenditure during the third quarter, inclusive of
expenditure at equity accounted joint ventures, was $55m ($24m brownfields,
$31m greenfields), compared with $43m ($23m brownfields, $20m greenfields) the
previous quarter.
GREENFIELD EXPLORATION
Greenfield exploration was undertaken in Australia, the Americas, China,
Southeast Asia, Sub-Saharan Africa, Russia, the DRC and the Middle East & North
Africa. A total of 56,970 metres of diamond, reverse circulation (RC) and
aircore (AC) drilling was completed at existing priority targets and was used
to delineate new targets in Australia and Canada.
In Australia, on the Tropicana Joint Venture, (AngloGold Ashanti 70%,
Independence Group 30%) the commencement of the feasibility study was approved
by the partners in July.
RC and diamond drilling was focused around the Tropicana-Havana resource area.
Significant results were returned from RC drilling on the near surface, western
edge of the project including 23m @ 4.1g/t Au from 62m and 19m @ 11.6g/t Au
from 39m. These results are consistent with previous drilling in the area and
improve the confidence in the resource estimate.
At Havana South, drilling identified extensions to the existing resource with
intercepts including 16m @ 5.57g/t from 204m, 22m @ 12.5g/t Au from 176m and
13m @ 5.86g/t Au from 255m. Drilling in this area has now been completed with a
resource estimate in progress.
To the east of Havana, a single diamond drill hole, 450m down-plunge from the
resource, intersected 21m @ 2.67g/t Au from 535m. This hole demonstrates the
continuation of the mineralisation down dip. Further drilling will be required
to define the continuity of higher-grade mineralized shoots that may be
amenable to underground mining.
The Public Environmental Review (PER) environmental impact assessment document
was released to the public on 28 September for an eight-week review period. The
project team has an active stakeholder engagement approach to address areas of
potential public concern.
During the quarter: 925 AC holes were drilled for 36,035m; 140 RC holes for
15,547m; and 22 diamond holes for 3,161m. Auger sampling continued with 9,360
samples collected across areas along the Tropicana-Havana trend.
Surface geochemical sampling and an airborne magnetic-radiometric survey over
the 10,600km2 Viking project, located southwest of the Tropicana JV, commenced
in September.
AngloGold Ashanti completed the purchase of the interests and rights of Anglo
American Exploration Australia in the 830km2 Saxby JV with Falcon Minerals
Limited in northwest Queensland. Gravity and airborne magnetic- radiometric
surveying were completed and infill SQUID electromagnetic surveying commenced
in the September quarter.
In Colombia, Phase I and Phase II Greenfield exploration was completed by
AngloGold Ashanti and by joint venture partners B2Gold Corporation, Mineros
S.A. and Glencore International. No drilling was undertaken by AngloGold
Ashanti or its JV partners during the quarter. At the wholly owned La Colosa
project, drill preparation work is in progress and further resource and
step-out drilling, as part of ongoing pre-feasibility study, will commence in
2010.
A total of 2,843 surface samples were collected during the quarter over the
Colombian tenements. The total area under exploration in Colombia at the end of
the quarter was 24,862km2.
Work in the remainder of the Americas focused on target-generation
opportunities, reviews and the negotiation of potential strategic alliances and
joint ventures in Brazil, the US and Canada. An exploration alliance was signed
with Horizonte Minerals for exploration in specific areas of Brazil. In Canada,
two diamond holes were drilled at the Kinskuch Lake Project near Stewart B.C.
In north-eastern Canada, the company entered into a joint venture agreement
with Commander Resources. Under the agreement, AngloGold Ashanti can earn a 51%
participating interest in Commander`s Baffin Island Gold Project by funding
$20m in exploration expenditures and by completing a $1.2m private placement in
the shares of Commander. Exploration in areas covered under the terms of the
Laurentian Goldfields joint venture was undertaken with a number of areas
identified for Phase 1 follow-up.
In China, a limited trenching programme at the Jinchanggou Project in Gansu was
completed to confirm the strike extent of a new zone of gold mineralisation. An
infill soil programme across the Jinchanggou tenements was designed to identify
similar high-grade zones and is scheduled to start in mid October.
In Southeast Asia, project generation activities and evaluation of
opportunities are ongoing in a number of areas in the region, where specific
opportunities are under negotiation.
In Russia, AngloGold Ashanti and Polymetal are in the process of divesting a
number of properties held by the jointly owned Zoloto Taigi JV Company.
In Sub-Saharan Africa, project generation work has identified a number of
specific exploration opportunities that are currently under negotiation. In the
Democratic Republic of the Congo, all drill holes from the Mongbwalu resource
have been re-logged and the resource re-modelled in preparation for a
pre-feasibility study based on an underground mining scenario. Infill drilling
will commence early in the fourth quarter.
In the Middle East & North Africa, the strategic alliance between AngloGold
Ashanti and Thani Investments has continued to generate exploration targets
over specific regions of the highly prospective Arabian Nubian Shield.
BROWNFIELDS EXPLORATION
In South Africa, surface drilling continued in the Project Zaaiplaats area.
MMB5 is continuing to drill deflection 5, which is designed to intersect the
Vaal Reef along the Jersey Fault cut-off. Progress was slowed in weak rock
formations, but by the end of the quarter drilling had advanced from 2,874m to
3,295m.
MZA9 continued drilling a long deflection but technical issues have hampered
progress and the first reef intersection is only expected in December 2009. A
long deflection has commenced from MGR6 and the hole is currently at a depth of
1,856m. The Vaal Reef is expected to be intersected in May 2010. Progress on
MGR8 was also slow due to weak rock formations. The hole is currently at 3,071m
and a reef intersection is anticipated in November 2009.
At Obuasi in Ghana, exploration drilling below 50L has been halted due to
flooding. Pumping is underway and drilling is scheduled to recommence in
November 2009. Drilling above 50L was delayed due to poor ventilation and the
year to date drilling programme is behind budget.
In Argentina, at Cerro Vanguardia, the exploration programme was completed in
September. Mineral Resource models were completed for the Cuncuna and VerA3nica
veins, whilst geological work continues in the Volcan area. Aeromagnetic data
will be collected in November.
In Australia, at Sunrise Dam, drilling continued to infill and extend both
surface and underground lodes. An RC drill programme to test the SSZ crown
pillar below the North Wall Cut Back has commenced. This will fill gaps within
the resource block model and provide additional and immediate high-grade
opportunities to advance the mining of the open pit area. Drilling to test the
down-plunge extensions of the Cosmo lode has commenced and the zone, where the
Cosmo and Astro structures interact, is being re-evaluated. Opportunities have
also been identified for open-pittable satellite targets, which will remain the
focus of exploration, together with the known underground targets.
In Brazil, at the Corrego do Sitio Sulphide Project, drilling continued with
6,531m being drilled from surface, 5,109m drilled from underground and 1,371m
of underground development. At the Lamego project, 5,531m of surface drilling
and 1,135m of underground development were completed. At Serra Grande drilling
focused on the Fiuca and Pequizao targets and a total of 8,673m were drilled
during the quarter. During October drilling with the Devidrill system will
start. The system operates from a single location and is expected to save
drilling meters and reduce the environmental damage by restricting drill site
clearance.
At Siguiri in Guinea, infill drilling was focused at Sintroko South Extension,
Kami and Kosise. Aircore drilling at Sintroko North and Tubani was done to
assess the potential between the Tubani and Bidini pits. Drilling of fresh rock
targets resumed from the bottom of the northern section of the Bidini pit.
At Geita in Tanzania, exploration activities focused on three activities:
Ground Geophysical Surveys, core re- logging programme of the Central Thrust
Ramp ore zones and the infill drilling programme for Nyankanga Cut 7 and Geita
Hill. Approval for GGM Special Mining License (SML) enlargement was received
from the Ministry of Energy and Minerals (MEM) on the 24th of September 2009,
whereby Katoma, Nyamonge East, Katoma East and Geita Hill PL`s are included in
GGM SML 45/99, for an addition of 196km2. Also, approval of time extension for
Geita West, Kukuluma and Nyankumbu Prospective Licences was granted by the MEM.
This approval grants Geita 18 additional months to complete exploration works
and bring potential targets to pre-feasibility level, as defined by Tanzania
Mine Act.
At the FE4 pit at Sadiola in Mali, the mineralisation has been extended along
strike between the pits and appears to be controlled by NE trending structures.
Geological modeling is currently being undertaken. An airborne magnetic survey
was completed in September. Preliminary images from this detailed geophysical
survey have already identified several previously unidentified structural
trends. It is expected that detailed investigation will identify priority
targets.
At Yatela, approval has been given to allow 27,000m of drilling at the Yatela
Main Pit, Yatela Extensions and Alamoutala projects. This programme will meet
the expectations of the initial drill programme as well as delineate further
areas to allow AMS to continue mining post December 2009. At Alamoutala, 4,710m
of RC drilling was completed in September. A total of 7,000m of drilling is
planned and will be completed by the end of October.
At Navachab in Namibia, off mine exploration drilling was carried out in the
Gecko valley, whilst on mine exploration drilling was conducted in the NP2 FW
vein extension and North Pit 2 plunge extension areas.
At Cripple Creek & Victor in the United States, resource extension drilling
continued during the quarter.
Studies continue to quantify the potential high grade Mineral Resource.
Metallurgical testing of high grade material is underway and further
metallurgical test drilling has been planned.
Group operating results
Quarter ended
Sep Jun Sep
2009 2009 2008
Unaudited
Rand / Metric
OPERATING RESULTS
UNDERGROUND OPERATIONS
Milled - 000 tonnes / - 000 tons 3,090 2,912 3,178
Yield -g/t / - oz / t 6.41 6.33 6.84
Gold produced - kg / - oz (000) 19,816 18,424 21,737
SURFACE AND DUMP RECLAMATION
Treated - 000 tonnes / - 000 tons 3,102 3,345 3,078
Yield -g/t / - oz / t 0.49 0.49 0.40
Gold produced - kg / - oz (000) 1,527 1,653 1,229
OPEN-PIT OPERATIONS
Mined - 000 tonnes / - 000 tons 37,408 43,894 44,777
Treated - 000 tonnes / - 000 tons 6,713 6,487 6,318
Stripping ratio - t
(mined total - mined ore) / t mined ore 6.08 6.35 6.24
Yield -g/t / - oz / t 1.95 1.92 2.15
Gold in ore - kg / - oz (000) 8,604 8,231 4,089
Gold produced - kg / - oz (000) 13,077 12,430 13,573
HEAP LEACH OPERATIONS
Mined - 000 tonnes / - 000 tons 14,605 14,489 13,475
Placed 1 - 000 tonnes / - 000 tons 4,409 5,195 6,026
Stripping ratio - t
mined total - mined ore) / t mined ore 2.52 1.67 1.38
Yield 2 -g/t / - oz / t 0.60 0.71 0.56
Gold placed 3 - kg / - oz (000) 2,667 3,692 3,376
Gold produced - kg / - oz (000) 2,505 2,543 2,797
TOTAL
Gold produced - kg / - oz (000) 36,925 35,050 39,336
Gold sold - kg / - oz (000) 38,435 34,459 40,902
Price received - R / kg / - $ /
oz - sold 61,095 241,505 160,127
Price received normalised for
accelerated settlement of non-
hedge derivatives - R / kg / - $
/ oz - sold 225,388 241,505 160,127 245,364
Total cash costs - R / kg / - $ /
oz - produced 133,274 127,956 121,440 134,192
Total production costs - R / kg
/ - $ / oz - produced 166,355 161,909 152,945
PRODUCTIVITY PER EMPLOYEE
Target -g / - oz 328 313 346
Actual -g / - oz 301 289 321
CAPITAL EXPENDITURE - Rm / - $m 1,842 2,228 2,623
Nine months
ended
Sep Sep Sep
2009 2008 2009
Unaudited
Rand / Metric
OPERATING RESULTS
UNDERGROUND OPERATIONS
Milled - 000 tonnes / - 000 tons 9,035 9,108 3,406
Yield -g/t / - oz / t 6.32 6.95 0.187
Gold produced - kg / - oz (000) 57,097 63,346 637
SURFACE AND DUMP RECLAMATION
Treated - 000 tonnes / - 000 tons 9,710 8,779 3,419
Yield -g/t / - oz / t 0.52 0.42 0.014
Gold produced - kg / - oz (000) 5,005 3,647 49
OPEN-PIT OPERATIONS
Mined - 000 tonnes / - 000 tons 126,654 135,667 41,235
Treated - 000 tonnes / - 000 tons 18,937 18,813 7,400
Stripping ratio - t
(mined total - mined ore) / t mined ore 5.92 5.44 6.08
Yield -g/t / - oz / t 1.95 2.16 0.057
Gold in ore - kg / - oz (000) 24,586 28,766 277
Gold produced - kg / - oz (000) 36,913 40,691 420
HEAP LEACH OPERATIONS
Mined - 000 tonnes / - 000 tons 42,976 41,042 16,099
Placed 1 - 000 tonnes / - 000 tons 15,209 17,602 4,860
Stripping ratio - t
mined total - mined ore) / t mined ore 1.85 1.42 2.52
Yield 2 -g/t / - oz / t 0.63 0.62 0.018
Gold placed 3 - kg / - oz (000) 9,579 10,918 86
Gold produced - kg / - oz (000) 7,267 7,846 81
TOTAL
Gold produced - kg / - oz (000) 106,282 115,530 1,187
Gold sold - kg / - oz (000) 105,478 116,704 1,236
Price received - R / kg / - $ /
oz - sold 185,498 100,660 261
Price received normalised for
accelerated settlement of non-
hedge derivatives - R / kg / - $
/ oz - sold 225,388 174,646 906
Total cash costs - R / kg / - $ /
oz - produced 133,274 111,540 534
Total production costs - R / kg
/ - $ / oz - produced 169,536 142,586 667
PRODUCTIVITY PER EMPLOYEE
Target -g / - oz 312 330 10.56
Actual -g / - oz 293 314 9.68
CAPITAL EXPENDITURE - Rm / - $m 6,451 6,911 232
Nine months
Quarter ended ended
Jun Sep Sep Sep
2009 2008 2009 2008
Unaudited
Dollar / Imperial
OPERATING RESULTS
UNDERGROUND OPERATIONS
Milled - 000 tonnes / - 000 tons 3,210 3,503 9,959 10,040
Yield -g/t / - oz / t 0.185 0.200 0.184 0.203
Gold produced - kg / - oz (000) 592 699 1,836 2,037
SURFACE AND DUMP RECLAMATION
Treated - 000 tonnes / - 000 tons 3,687 3,393 10,703 9,677
Yield -g/t / - oz / t 0.014 0.012 0.015 0.012
Gold produced - kg / - oz (000) 53 40 161 117
OPEN-PIT OPERATIONS
Mined - 000 tonnes / - 000 tons 48,385 49,358 139,612 149,547
Treated - 000 tonnes / - 000 tons 7,151 6,964 20,874 20,738
Stripping ratio - t
(mined total - mined ore)
/ t mined ore 6.35 6.24 5.92 5.44
Yield -g/t / - oz / t 0.056 0.063 0.057 0.063
Gold in ore - kg / - oz (000) 265 131 790 925
Gold produced - kg / - oz (000) 400 436 1,187 1,308
HEAP LEACH OPERATIONS
Mined - 000 tonnes / - 000 tons 15,971 14,854 47,373 45,241
Placed 1 - 000 tonnes / - 000 tons 5,727 6,642 16,766 19,402
Stripping ratio - t
(mined total - mined ore)
/ t mined ore 1.67 1.38 1.85 1.42
Yield 2 -g/t / - oz / t 0.021 0.016 0.018 0.018
Gold placed 3 - kg / - oz (000) 119 109 308 351
Gold produced - kg / - oz (000) 82 90 233 252
TOTAL
Gold produced - kg / - oz (000) 1,127 1,265 3,417 3,714
Gold sold - kg / - oz (000) 1,108 1,315 3,391 3,752
Price received - R / kg
/ - $ / oz - sold 897 644 653 416
Price received normalised for
accelerated settlement of non-
hedge derivatives - R / kg
/ - $ / oz - sold 897 644 888 707
Total cash costs - R / kg
/ - $ / oz - produced 472 486 485 451
Total production costs - R
/ kg / - $ / oz - produced 598 612 612 576
PRODUCTIVITY PER EMPLOYEE
Target -g / - oz 10.08 11.12 10.02 10.60
Actual -g / - oz 9.30 10.32 9.41 10.10
CAPITAL EXPENDITURE - Rm / - $m 261 338 734 899
1 Tonnes (tons) placed on to leach pad.
2 Gold placed / tonnes (tons) placed.
3 Gold placed into leach pad inventory.
Rounding of figures may result in computational discrepancies.
Group income statement
Quarter Quarter
ended ended
September June
2009 2009
SA Rand million Notes Unaudited Unaudited
Revenue 2 8,806 6,817
Gold income 8,512 6,481
Cost of sales 3 (6,168) (5,212)
(Loss) gain on non-hedge derivatives and
other commodity contracts 4 (11,216) 1,783
Gross (loss) profit (8,872) 3,051
Corporate administration and other
expenses (264) (300)
Market development costs (24) (25)
Exploration costs (311) (243)
Other operating expenses 5 (36) (51)
Operating special items 6 (231) 739
Operating (loss) profit (9,738) 3,171
Interest received 121 92
Exchange gain 25 285
Fair value adjustment on option component
of convertible bond (60) (123)
Finance costs and unwinding of obligations (305) (322)
Share of equity accounted investments`
profit (loss) 175 160
(Loss) profit before taxation (9,782) 3,263
Taxation 7 1,650 (915)
(Loss) profit after taxation from
continuing operations (8,132) 2,348
Discontinued operations
Profit from discontinued operations - -
(Loss) profit for the period (8,132) 2,348
Allocated as follows:
Equity shareholders (8,245) 2,304
Minority interest 113 44
(8,132) 2,348
Basic (loss) profit per ordinary share
(cents) 1
(Loss) profit from continuing operations (2,286) 642
Profit from discontinued operations - -
(Loss) profit (2,286) 642
Diluted (loss) profit per ordinary share
(cents) 2
(Loss) profit from continuing operations (2,286) 641
Profit from discontinued operations - -
(Loss) profit (2,286) 641
Quarter Nine months Nine months
ended ended ended
September September September
2008 2009 2008
SA Rand million Unaudited Unaudited Unaudited
Revenue 7,205 22,447 22,019
Gold income 6,851 21,511 21,258
Cost of sales (6,148) (17,001) (15,630)
(Loss) gain on non-hedge
derivatives and other commodity
contracts 148 (9,228) (6,875)
Gross (loss) profit 851 (4,718) (1,248)
Corporate administration and
other expenses (255) (916) (727)
Market development costs (25) (77) (73)
Exploration costs (205) (776) (739)
Other operating expenses (73) (137) (89)
Operating special items 121 448 476
Operating (loss) profit 415 (6,176) (2,400)
Interest received 248 311 429
Exchange gain 51 326 25
Fair value adjustment on option
component of convertible bond - (183) 183
Finance costs and unwinding of
obligations (235) (879) (701)
Share of equity accounted
investments` profit (loss) (98) 558 (796)
(Loss) profit before taxation 381 (6,043) (3,261)
Taxation (577) 351 (900)
(Loss) profit after taxation from
continuing operations (196) (5,692) (4,161)
Discontinued operations
Profit from discontinued operations 6 - 194
(Loss) profit for the period (190) (5,692) (3,968)
Allocated as follows:
Equity shareholders (247) (5,940) (4,236)
Minority interest 57 248 268
(190) (5,692) (3,968)
Basic (loss) profit per ordinary
share (cents) 1
(Loss) profit from continuing
operations (73) (1,653) (1,457)
Profit from discontinued operations 2 - 64
(Loss) profit (71) (1,653) (1,393)
Diluted (loss) profit per
ordinary share (cents) 2
(Loss) profit from continuing
operations (73) (1,653) (1,457)
Profit from discontinued operations 2 - 64
(Loss) profit (71) (1,653) (1,393)
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
ended ended
September June
2009 2009
US Dollar million Notes Unaudited Unaudited
Revenue 2 1,140 814
Gold income 1,101 773
Cost of sales 3 (796) (617)
(Loss) gain on non-hedge derivatives and
other commodity contracts 4 (1,421) 231
Gross (loss) profit (1,116) 387
Corporate administration and other
expenses (34) (36)
Market development costs (3) (3)
Exploration costs (40) (29)
Other operating expenses 5 (5) (6)
Operating special items 6 (31) 92
Operating (loss) profit (1,229) 406
Interest received 16 11
Exchange gain 3 36
Fair value adjustment on option component
of convertible bond (9) (15)
Finance costs and unwinding of obligations (39) (39)
Share of equity accounted investments`
profit (loss) 22 19
(Loss) profit before taxation (1,236) 418
Taxation 7 209 (113)
(Loss) profit after taxation from
continuing operations (1,027) 304
Discontinued operations
Profit from discontinued operations - -
(Loss) profit for the period (1,027) 304
Allocated as follows:
Equity shareholders (1,042) 299
Minority interest 15 5
(1,027) 304
Basic (loss) profit per ordinary share
(cents) 1
(Loss) profit from continuing operations (289) 83
Profit from discontinued operations - -
(Loss) profit (289) 83
Diluted (loss) profit per ordinary share
(cents) 2
(Loss) profit from continuing operations (289) 83
Profit from discontinued operations - -
(Loss) profit (289) 83
Quarter Nine months Nine months
ended ended ended
September September September
2008 2009 2008
US Dollar million Unaudited Unaudited Unaudited
Revenue 930 2,642 2,859
Gold income 885 2,533 2,761
Cost of sales (790) (1,981) (2,029)
(Loss) gain on non-hedge
derivatives and other commodity
contracts 92 (1,170) (528)
Gross (loss) profit 186 (618) 204
Corporate administration and
other expenses (33) (105) (94)
Market development costs (3) (9) (9)
Exploration costs (26) (91) (96)
Other operating expenses (9) (16) (11)
Operating special items 16 55 62
Operating (loss) profit 130 (784) 55
Interest received 32 36 56
Exchange gain 6 40 3
Fair value adjustment on option
component of convertible bond - (24) 24
Finance costs and unwinding of
obligations (30) (103) (91)
Share of equity accounted
investments` profit (loss) (12) 64 (100)
(Loss) profit before taxation 126 (771) (53)
Taxation (69) 57 (115)
(Loss) profit after taxation from
continuing operations 57 (714) (169)
Discontinued operations
Profit from discontinued
operations 1 - 24
(Loss) profit for the period 58 (714) (144)
Allocated as follows:
Equity shareholders 51 (743) (179)
Minority interest 7 29 35
58 (714) (144)
Basic (loss) profit per ordinary
share (cents) 1
(Loss) profit from continuing
operations 15 (207) (67)
Profit from discontinued
operations - - 8
(Loss) profit 15 (207) (59)
Diluted (loss) profit per
ordinary share (cents) 2
(Loss) profit from continuing
operations 15 (207) (67)
Profit from discontinued
operations - - 8
(Loss) profit 15 (207) (59)
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
September June September
2009 2009 2008
SA Rand million Unaudited Unaudited Unaudited
(Loss) profit for the period (8,132) 2,348 (190)
Exchange differences on translation
of foreign operations 336 (2,401) 424
Net loss on cash flow hedges reported
in gold sales 122 322 396
Net (loss) gain on cash flow hedges (142) 321 141
Hedge ineffectiveness on cash flow
hedges (18) 7 (1)
Realised (losses) gains on hedges of
capital items (35) 36 -
Deferred taxation thereon 17 (176) (132)
(56) 510 404
Net gain (loss) on available for sale
financial assets 100 (47) (14)
Release on disposal of available for
sale financial assets - - (2)
Deferred taxation thereon (4) (1) 7
96 (48) (9)
Actuarial loss recognised - - (193)
Deferred taxation thereon - - 69
- - (124)
Other comprehensive income (expense)
for the period net of tax 376 (1,939) 695
Total comprehensive (expense) income
for the period net of tax (7,756) 409 505
Allocated as follows:
Equity shareholders (7,869) 361 424
Minority interest 113 48 81
(7,756) 409 505
Nine months Nine months
ended ended
September September
2009 2008
SA Rand million Unaudited Unaudited
(Loss) profit for the period (5,692) (3,968)
Exchange differences on translation of foreign
operations (1,889) 4,597
Net loss on cash flow hedges reported in gold
sales 974 1,413
Net (loss) gain on cash flow hedges 8 (622)
Hedge ineffectiveness on cash flow hedges 25 (3)
Realised (losses) gains on hedges of capital
items (14) -
Deferred taxation thereon (250) (196)
743 592
Net gain (loss) on available for sale financial
assets 136 (81)
Release on disposal of available for sale
financial assets - (8)
Deferred taxation thereon (8) 23
128 (66)
Actuarial loss recognised - (193)
Deferred taxation thereon - 66
- (127)
Other comprehensive income (expense) for the
period net of tax (1,018) 4,996
Total comprehensive (expense) income for the
period net of tax (6,710) 1,028
Allocated as follows:
Equity shareholders (6,968) 729
Minority interest 258 299
(6,710) 1,028
Rounding of figures may result in computational discrepancies.
Group statement of comprehensive income
Quarter Quarter Quarter
ended ended ended
September June September
2009 2009 2008
US Dollar million Unaudited Unaudited Unaudited
(Loss) profit for the period (1,027) 304 58
Exchange differences on translation
of foreign operations 76 290 (218)
Net loss on cash flow hedges reported
in gold sales 19 39 51
Net (loss) gain on cash flow hedges (15) 33 19
Hedge ineffectiveness on cash flow
hedges (2) 2 -
Realised (losses) gains on hedges of
capital items (4) 4 -
Deferred taxation thereon 1 (24) (16)
(1) 54 54
Net gain (loss) on available for sale
financial assets 12 (4) (2)
Release on disposal of available for
sale financial assets - - -
Deferred taxation thereon (1) - -
11 (4) (2)
Actuarial loss recognised - - (25)
Deferred taxation thereon - - 9
- - (16)
Other comprehensive income (expense)
for the period net of tax 86 340 (182)
Total comprehensive (expense) income
for the period net of tax (941) 644 (124)
Allocated as follows:
Equity shareholders (956) 639 (135)
Minority interest 15 5 11
(941) 644 (124)
Nine months Nine months
ended ended
September September
2009 2008
US Dollar million Unaudited Unaudited
(Loss) profit for the period (714) (144)
Exchange differences on translation of foreign
operations 350 (294)
Net loss on cash flow hedges reported in gold
sales 112 184
Net (loss) gain on cash flow hedges 1 (81)
Hedge ineffectiveness on cash flow hedges 3 -
Realised (losses) gains on hedges of capital
items (2) -
Deferred taxation thereon (32) (24)
82 79
Net gain (loss) on available for sale financial
assets 16 (11)
Release on disposal of available for sale
financial assets - (1)
Deferred taxation thereon (1) 2
15 (10)
Actuarial loss recognised - (25)
Deferred taxation thereon - 9
- (16)
Other comprehensive income (expense) for the
period net of tax 447 (241)
Total comprehensive (expense) income for the
period net of tax (267) (385)
Allocated as follows:
Equity shareholders (297) (424)
Minority interest 30 39
(267) (385)
Rounding of figures may result in computational discrepancies.
Group statement of financial position
As at As at
September June
2009 2009
SA Rand million Note Unaudited Unaudited
ASSETS
Non-current assets
Tangible assets 37,416 37,111
Intangible assets 1,315 1,264
Investments in associates and equity
accounted joint ventures 1,890 1,805
Other investments 961 820
Inventories 2,550 2,432
Trade and other receivables 766 696
Derivatives - 15
Deferred taxation 487 390
Other non-current assets 30 31
45,415 44,564
Current assets
Inventories 4,997 5,212
Trade and other receivables 3,586 3,534
Derivatives 2,900 3,551
Current portion of other non-current assets 2 2
Cash restricted for use 501 487
Cash and cash equivalents 8,328 17,768
20,314 30,554
Non-current assets held for sale 642 669
20,956 31,223
TOTAL ASSETS 66,371 75,787
EQUITY AND LIABILITIES
Share capital and premium 10 39,759 37,547
Retained earnings and other reserves (21,601) (13,570)
Minority interests 848 792
Total equity 19,006 24,768
Non-current liabilities
Borrowings 12,512 12,857
Environmental rehabilitation and other
provisions 3,530 3,492
Provision for pension and post-retirement
benefits 1,280 1,279
Trade, other payables and deferred income 107 111
Derivatives 1,249 1,215
Deferred taxation 4,272 6,032
22,950 24,986
Current liabilities
Current portion of borrowings 1,867 7,846
Trade, other payables and deferred income 4,449 4,014
Derivatives 16,954 13,011
Taxation 1,079 1,098
24,349 25,969
Non-current liabilities held for sale 66 64
24,415 26,033
Total liabilities 47,365 51,019
TOTAL EQUITY AND LIABILITIES 66,371 75,787
Net asset value - cents per share 5,195 6,916
As at As at
December September
2008 2008
SA Rand million Unaudited Unaudited
ASSETS
Non-current assets
Tangible assets 41,081 55,085
Intangible assets 1,403 3,287
Investments in associates and equity accounted
joint ventures 2,814 2,846
Other investments 625 663
Inventories 2,710 2,389
Trade and other receivables 585 531
Derivatives - -
Deferred taxation 475 111
Other non-current assets 32 88
49,725 65,000
Current assets
Inventories 5,663 5,342
Trade and other receivables 2,076 2,076
Derivatives 5,386 3,851
Current portion of other non-current assets 2 2
Cash restricted for use 415 499
Cash and cash equivalents 5,438 4,585
18,980 16,355
Non-current assets held for sale 7,497 10
26,477 16,365
TOTAL ASSETS 76,202 81,365
EQUITY AND LIABILITIES
Share capital and premium 37,336 36,525
Retained earnings and other reserves (14,380) (6,579)
Minority interests 790 655
Total equity 23,746 30,601
Non-current liabilities
Borrowings 8,224 6,865
Environmental rehabilitation and other provisions 3,860 3,805
Provision for pension and post-retirement benefits 1,293 1,257
Trade, other payables and deferred income 99 72
Derivatives 235 313
Deferred taxation 5,838 8,170
19,549 20,483
Current liabilities
Current portion of borrowings 10,046 8,581
Trade, other payables and deferred income 4,946 4,857
Derivatives 16,426 15,998
Taxation 1,033 846
32,451 30,282
Non-current liabilities held for sale 456 -
32,907 30,282
Total liabilities 52,456 50,764
TOTAL EQUITY AND LIABILITIES 76,202 81,365
Net asset value - cents per share 6,643 8,628
Rounding of figures may result in computational discrepancies.
Group statement of financial position
As at As at
September June
2009 2009
US Dollar million Note Unaudited Unaudited
ASSETS
Non-current assets
Tangible assets 4,980 4,813
Intangible assets 175 164
Investments in associates and equity
accounted joint ventures 252 234
Other investments 128 106
Inventories 339 315
Trade and other receivables 102 90
Derivatives - 2
Deferred taxation 65 51
Other non-current assets 4 4
6,045 5,780
Current assets
Inventories 665 676
Trade and other receivables 477 458
Derivatives 386 461
Current portion of other non-current assets - -
Cash restricted for use 67 63
Cash and cash equivalents 1,108 2,305
2,703 3,963
Non-current assets held for sale 85 87
2,788 4,050
TOTAL ASSETS 8,833 9,830
EQUITY AND LIABILITIES
Share capital and premium 10 5,794 5,508
Retained earnings and other reserves (3,378) (2,398)
Minority interests 113 103
Total equity 2,529 3,212
Non-current liabilities
Borrowings 1,665 1,668
Environmental rehabilitation and other
provisions 470 453
Provision for pension and post-retirement
benefits 170 166
Trade, other payables and deferred income 14 14
Derivatives 166 158
Deferred taxation 569 782
3,054 3,241
Current liabilities
Current portion of borrowings 249 1,018
Trade, other payables and deferred income 592 521
Derivatives 2,256 1,687
Taxation 144 142
3,241 3,368
Non-current liabilities held for sale 9 8
3,250 3,376
Total liabilities 6,304 6,617
TOTAL EQUITY AND LIABILITIES 8,833 9,830
Net asset value - cents per share 691 897
As at As at
December September
2008 2008
Restated
US Dollar million Unaudited Unaudited
ASSETS
Non-current assets
Tangible assets 4,345 6,663
Intangible assets 148 398
Investments in associates and equity accounted
joint ventures 298 344
Other investments 66 80
Inventories 287 289
Trade and other receivables 62 64
Derivatives - -
Deferred taxation 50 13
Other non-current assets 3 11
5,259 7,863
Current assets
Inventories 599 646
Trade and other receivables 220 251
Derivatives 570 466
Current portion of other non-current assets - -
Cash restricted for use 44 60
Cash and cash equivalents 575 555
2,008 1,978
Non-current assets held for sale 793 1
2,801 1,979
TOTAL ASSETS 8,060 9,842
EQUITY AND LIABILITIES
Share capital and premium 5,485 5,403
Retained earnings and other reserves (3,057) (1,781)
Minority interests 83 79
Total equity 2,511 3,702
Non-current liabilities
Borrowings 870 830
Environmental rehabilitation and other provisions 408 460
Provision for pension and post-retirement benefits 137 152
Trade, other payables and deferred income 11 9
Derivatives 25 38
Deferred taxation 617 988
2,068 2,478
Current liabilities
Current portion of borrowings 1,063 1,038
Trade, other payables and deferred income 524 587
Derivatives 1,737 1,935
Taxation 109 102
3,433 3,663
Non-current liabilities held for sale 48 -
3,481 3,663
Total liabilities 5,549 6,140
TOTAL EQUITY AND LIABILITIES 8,060 9,842
Net asset value - cents per share 702 1,044
Rounding of figures may result in computational discrepancies.
Group statement of cashflows
Quarter Quarter Quarter
ended ended ended
September June September
2009 2009 2008
SA Rand million Unaudited Unaudited Unaudited
Cash flows from operating activities
Receipts from customers 8,545 6,928 6,818
Payments to suppliers and employees (6,147) (5,135) (6,193)
Cash generated from operations 2,398 1,793 625
Cash generated (utilised) by
discontinued operations - - 9
Dividend received from equity
accounted investments 21 421 141
Taxation paid (234) (340) (129)
Cash utilised for hedge buyback costs (6,315) - (7,755)
Net cash (outflow) inflow from
operating activities (4,130) 1,874 (7,108)
Cash flows from investing activities
Capital expenditure (1,836) (2,189) (2,615)
Proceeds from disposal of tangible
assets 43 7,156 25
Proceeds from disposal of assets of
discontinued operations - - 1
Other investments acquired (328) (33) (228)
Associates acquired - (9) (3)
Proceeds on disposal of associate - - (13)
Associates` loans advanced - - (36)
Associates` loans repaid - 3 2
Proceeds from disposal of investments 258 60 214
(Increase) decrease in cash
restricted for use (16) 10 24
Interest received 129 88 256
Loans advanced - (1) -
Repayment of loans advanced 1 1 1
Net cash (outflow) inflow from
investing activities (1,749) 5,086 (2,372)
Cash flows from financing activities
Proceeds from issue of share capital 2,215 15 13,494
Share issue expenses (34) (6) (410)
Proceeds from borrowings 6,709 7,092 2,305
Repayment of borrowings (12,957) (1,003) (4,402)
Finance costs paid (110) (245) (242)
Advanced proceeds from rights offer - - (6)
Dividends paid (253) - (254)
Net cash (outflow) inflow from
financing activities (4,430) 5,853 10,486
Net (decrease) increase in cash and
cash equivalents (10,309) 12,813 1,005
Translation 869 (919) (81)
Cash and cash equivalents at
beginning of period 17,768 5,874 3,661
Cash and cash equivalents at end of
period 8,328 17,768 4,585
Cash generated from operations
(Loss) profit before taxation (9,782) 3,263 381
Adjusted for:
Movement on non-hedge derivatives and
other commodity contracts 11,041 (525) (821)
Amortisation of tangible assets 1,107 1,095 1,111
Finance costs and unwinding of
obligations 305 322 235
Environmental, rehabilitation and
other expenditure 33 (27) 54
Operating special items 231 (733) (121)
Amortisation of intangible assets 4 4 4
Deferred stripping (96) (263) (124)
Fair value adjustment on option
components of convertible bond 60 123 -
Interest receivable (121) (92) (248)
Share of equity accounted
investments` (profit) loss (175) (160) 98
Other non-cash movements 23 (285) 295
Movements in working capital (232) (928) (238)
2,398 1,793 625
Movements in working capital
Decrease (increase) in inventories 104 1,153 (310)
(Increase) decrease in trade and
other receivables (125) 131 (241)
(Decrease) increase in trade and
other payables (211) (2,212) 312
(232) (928) (238)
Nine months Nine months
ended ended
September September
2009 2008
SA Rand million Unaudited Unaudited
Cash flows from operating activities
Receipts from customers 21,877 21,345
Payments to suppliers and employees (15,008) (18,218)
Cash generated from operations 6,869 3,127
Cash generated (utilised) by discontinued
operations - (7)
Dividend received from equity accounted
investments 615 483
Taxation paid (998) (902)
Cash utilised for hedge buyback costs (6,315) (8,504)
Net cash (outflow) inflow from operating
activities 171 (5,804)
Cash flows from investing activities
Capital expenditure (6,413) (6,881)
Proceeds from disposal of tangible assets 7,216 268
Proceeds from disposal of assets of
discontinued operations - 79
Other investments acquired (521) (572)
Associates acquired (9) (3)
Proceeds on disposal of associate - 383
Associates` loans advanced - (35)
Associates` loans repaid 3 32
Proceeds from disposal of investments 484 526
(Increase) decrease in cash restricted for use (110) (144)
Interest received 316 440
Loans advanced (1) (3)
Repayment of loans advanced 2 2
Net cash (outflow) inflow from investing
activities 967 (5,907)
Cash flows from financing activities
Proceeds from issue of share capital 2,345 13,580
Share issue expenses (45) (410)
Proceeds from borrowings 24,739 5,412
Repayment of borrowings (24,095) (4,589)
Finance costs paid (766) (522)
Advanced proceeds from rights offer - -
Dividends paid (431) (455)
Net cash (outflow) inflow from financing
activities 1,747 13,016
Net (decrease) increase in cash and cash
equivalents 2,885 1,306
Translation 5 33
Cash and cash equivalents at beginning of period 5,438 3,246
Cash and cash equivalents at end of period 8,328 4,585
Cash generated from operations
(Loss) profit before taxation (6,043) (3,261)
Adjusted for:
Movement on non-hedge derivatives and other
commodity contracts 12,136 4,215
Amortisation of tangible assets 3,463 3,233
Finance costs and unwinding of obligations 879 701
Environmental, rehabilitation and other
expenditure 22 113
Operating special items (441) (476)
Amortisation of intangible assets 14 11
Deferred stripping (671) (278)
Fair value adjustment on option components of
convertible bond 183 (183)
Interest receivable (311) (429)
Share of equity accounted investments` (profit)
loss (558) 796
Other non-cash movements (179) 412
Movements in working capital (1,625) (1,727)
6,869 3,127
Movements in working capital
Decrease (increase) in inventories 817 (2,427)
(Increase) decrease in trade and other
receivables (332) (753)
(Decrease) increase in trade and other payables (2,110) 1,452
(1,625) (1,727)
Rounding of figures may result in computational discrepancies.
Group statement of cashflows
Quarter Quarter Quarter
ended ended ended
September June September
2009 2009 2008
US Dollar million Unaudited Unaudited Unaudited
Cash flows from operating activities
Receipts from customers 1,104 811 884
Payments to suppliers and employees (741) (575) (765)
Cash generated from operations 363 236 119
Cash generated (utilised) by
discontinued operations - - 1
Dividend received from equity
accounted investments 5 59 15
Taxation paid (32) (40) (16)
Cash utilised for hedge buyback costs (797) - (1,018)
Net cash (outflow) inflow from
operating activities (461) 255 (899)
Cash flows from investing activities
Capital expenditure (239) (257) (337)
Proceeds from disposal of tangible
assets 5 893 3
Proceeds from disposal of assets of
discontinued operations - - -
Other investments acquired (39) (5) (29)
Associates acquired - (1) 1
Proceeds on disposal of associate - - -
Associates` loans advanced - - (5)
Associates` loans repaid - - -
Proceeds from disposal of investments 31 8 28
(Increase) decrease in cash
restricted for use (2) 1 3
Interest received 17 11 33
Loans advanced - - -
Repayment of loans advanced - - -
Net cash (outflow) inflow from
investing activities (227) 650 (303)
Cash flows from financing activities
Proceeds from issue of share capital 287 3 1,710
Share issue expenses (5) (1) (54)
Proceeds from borrowings 784 856 298
Repayment of borrowings (1,573) (111) (573)
Finance costs paid (16) (31) (31)
Advanced proceeds from rights offer - - (1)
Dividends paid (32) - (33)
Net cash (outflow) inflow from
financing activities (555) 716 1,317
Net (decrease) increase in cash and
cash equivalents (1,243) 1,621 114
Translation 46 71 (27)
Cash and cash equivalents at
beginning of period 2,305 613 467
Cash and cash equivalents at end of
period 1,108 2,305 555
Cash generated from operations
(Loss) profit before taxation (1,236) 418 126
Adjusted for:
Movement on non-hedge derivatives and
other commodity contracts 1,398 (81) (178)
Amortisation of tangible assets 143 130 143
Finance costs and unwinding of
obligations 39 39 30
Environmental, rehabilitation and
other expenditure 5 (3) 7
Operating special items 31 (92) (16)
Amortisation of intangible assets 1 1 -
Deferred stripping (13) (31) (16)
Fair value adjustment on option
components of convertible bond 9 15 -
Interest receivable (16) (11) (32)
Share of equity accounted
investments` (profit) loss (22) (19) 12
Other non-cash movements 3 (36) 37
Movements in working capital 21 (94) 5
363 236 119
Movements in working capital
(Increase) decrease in inventories (12) (74) 14
Increase in trade and other
receivables (25) (44) (17)
Increase (decrease) in trade and
other payables 58 24 7
21 (94) 5
Nine months Nine months
ended ended
September September
2009 2008
Restated
US Dollar million Unaudited Unaudited
Cash flows from operating activities
Receipts from customers 2,561 2,781
Payments to suppliers and employees (1,694) (2,359)
Cash generated from operations 867 422
Cash generated (utilised) by discontinued
operations - (1)
Dividend received from equity accounted
investments 82 58
Taxation paid (115) (117)
Cash utilised for hedge buyback costs (797) (1,112)
Net cash (outflow) inflow from operating
activities 37 (750)
Cash flows from investing activities
Capital expenditure (737) (895)
Proceeds from disposal of tangible assets 900 35
Proceeds from disposal of assets of
discontinued operations - 10
Other investments acquired (60) (74)
Associates acquired (1) 1
Proceeds on disposal of associate - 50
Associates` loans advanced - (4)
Associates` loans repaid - 4
Proceeds from disposal of investments 56 68
(Increase) decrease in cash restricted for use (11) (19)
Interest received 37 57
Loans advanced - -
Repayment of loans advanced - -
Net cash (outflow) inflow from investing
activities 184 (768)
Cash flows from financing activities
Proceeds from issue of share capital 301 1,722
Share issue expenses (6) (54)
Proceeds from borrowings 2,745 704
Repayment of borrowings (2,708) (597)
Finance costs paid (88) (68)
Advanced proceeds from rights offer - -
Dividends paid (50) (58)
Net cash (outflow) inflow from financing
activities 194 1,649
Net (decrease) increase in cash and cash
equivalents 415 131
Translation 118 (54)
Cash and cash equivalents at beginning of period 575 477
Cash and cash equivalents at end of period 1,108 555
Cash generated from operations
(Loss) profit before taxation (771) (53)
Adjusted for:
Movement on non-hedge derivatives and other
commodity contracts 1,481 187
Amortisation of tangible assets 400 420
Finance costs and unwinding of obligations 103 91
Environmental, rehabilitation and other
expenditure 3 14
Operating special items (54) (62)
Amortisation of intangible assets 2 1
Deferred stripping (75) (36)
Fair value adjustment on option components of
convertible bond 24 (24)
Interest receivable (36) (56)
Share of equity accounted investments`
(profit) loss (64) 100
Other non-cash movements (24) 51
Movements in working capital (122) (211)
867 422
Movements in working capital
(Increase) decrease in inventories (120) (150)
Increase in trade and other receivables (100) (56)
Increase (decrease) in trade and other payables 98 (6)
(122) (211)
Rounding of figures may result in computational discrepancies.
Group statement of changes in equity
Cash
Share Other flow
capital & capital Retained hedge
SA Rand million premium reserves earnings reserve
Balance at December 2007 22,371 714 (5,524) (1,634)
(Loss) profit for the period (4,236)
Comprehensive income
(expense) 561
Total comprehensive
(expense) income - - (4,236) 561
Shares issued 14,154
Share-based payment for
share awards 161
Dividends paid (324)
Dividends of subsidiaries
Transfers to other reserves 12 (12)
Acquisition of minority
interest (853)
Translation (5) (122)
Balance at September 2008 36,525 882 (10,949) (1,195)
Balance at December 2008 37,336 799 (22,879) (1,008)
(Loss) profit for the period (5,940)
Comprehensive income
(expense) 733
Total comprehensive
(expense) income - - (5,940) 733
Shares issued 2,423
Share-based payment for
share awards 120
Dividends paid (392)
Dividends of subsidiaries
Translation (23) 43
Balance at September 2009 39,759 896 (29,211) (232)
US Dollar million
Balance at December 2007 3,608 105 (1,020) (240)
(Loss) profit for the period (179)
Comprehensive income
(expense) 75
Total comprehensive
(expense) income - - (179) 75
Shares issued 1,795
Share-based payment for
share awards 21
Dividends paid (41)
Dividends of subsidiaries
Transfers to other reserves 1 (1)
Acquisition of minority
interest (111)
Translation (20) 20
Balance at September 2008 -
restated 5,403 107 (1,352) (145)
Balance at December 2008 5,485 85 (2,368) (107)
(Loss) profit for the period (743)
Comprehensive income 81
Total comprehensive
(expense) income - - (743) 81
Shares issued 309
Share-based payment for
share awards 14
Dividends paid (45)
Dividends of subsidiaries
Translation 20 (5)
Balance at September 2009 5,794 119 (3,156) (31)
Available Foreign
for Actuarial currency
sale (losses) translation
SA Rand million reserve gains reserve
Balance at December 2007 59 (108) 326
(Loss) profit for the period
Comprehensive income (expense) (66) (127) 4,597
Total comprehensive (expense) income (66) (127) 4,597
Shares issued
Share-based payment for share awards
Dividends paid
Dividends of subsidiaries
Transfers to other reserves
Acquisition of minority interest
Translation 2
Balance at September 2008 (7) (233) 4,923
Balance at December 2008 (18) (347) 9,073
(Loss) profit for the period
Comprehensive income (expense) 128 (1,889)
Total comprehensive (expense) income 128 - (1,889)
Shares issued
Share-based payment for share awards
Dividends paid
Dividends of subsidiaries
Translation (3) 2
Balance at September 2009 107 (345) 7,184
US Dollar million
Balance at December 2007 9 (16) (67)
(Loss) profit for the period
Comprehensive income (expense) (10) (16) (294)
Total comprehensive (expense) income (10) (16) (294)
Shares issued
Share-based payment for share awards
Dividends paid
Dividends of subsidiaries
Transfers to other reserves
Acquisition of minority interest
Translation 4
Balance at September 2008 - restated (1) (28) (361)
Balance at December 2008 (2) (37) (628)
(Loss) profit for the period
Comprehensive income 15 350
Total comprehensive (expense) income 15 - 350
Shares issued
Share-based payment for share awards
Dividends paid
Dividends of subsidiaries
Translation 1 (9)
Balance at September 2009 14 (46) (278)
Minority Total
SA Rand million Total interests equity
Balance at December 2007 16,204 429 16,633
(Loss) profit for the period (4,236) 268 (3,968)
Comprehensive income (expense) 4,965 31 4,996
Total comprehensive (expense) income 729 299 1,028
Shares issued 14,154 14,154
Share-based payment for share awards 161 161
Dividends paid (324) (324)
Dividends of subsidiaries - (131) (131)
Transfers to other reserves - -
Acquisition of minority interest (853) 6 (847)
Translation (125) 52 (73)
Balance at September 2008 29,946 655 30,601
Balance at December 2008 22,956 790 23,746
(Loss) profit for the period (5,940) 248 (5,692)
Comprehensive income (expense) (1,028) 10 (1,018)
Total comprehensive (expense) income (6,968) 258 (6,710)
Shares issued 2,423 2,423
Share-based payment for share awards 120 120
Dividends paid (392) (392)
Dividends of subsidiaries - (43) (43)
Translation 19 (157) (138)
Balance at September 2009 18,158 848 19,006
US Dollar million
Balance at December 2007 2,379 63 2,442
(Loss) profit for the period (179) 35 (144)
Comprehensive income (expense) (245) 4 (241)
Total comprehensive (expense) income (424) 39 (385)
Shares issued 1,795 1,795
Share-based payment for share awards 21 21
Dividends paid (41) (41)
Dividends of subsidiaries - (17) (17)
Transfers to other reserves - -
Acquisition of minority interest (111) 1 (110)
Translation 4 (7) (3)
Balance at September 2008 - restated 3,623 79 3,702
Balance at December 2008 2,428 83 2,511
(Loss) profit for the period (743) 29 (714)
Comprehensive income 446 1 447
Total comprehensive (expense) income (297) 30 (267)
Shares issued 309 309
Share-based payment for share awards 14 14
Dividends paid (45) (45)
Dividends of subsidiaries - (5) (5)
Translation 7 5 12
Balance at September 2009 2,416 113 2,529
Rounding of figures may result in computational discrepancies.
Notes for the quarter and nine months ended 30 September 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 nine months ended 30 September
2009.
2. Revenue
Quarter ended Nine months ended
Sep Jun Sep Sep Sep
2009 2009 2008 2009 2008
Unaudited Unaudited Unaudited Unaudited Unaudited
SA Rand million
Gold
income 8,512 6,481 6,851 21,511 21,258
By-products
(note 3) 173 244 106 625 332
Interest
received 121 92 248 311 429
8,806 6,817 7,205 22,447 22,019
Quarter ended Nine months ended
Sep Jun Sep Sep Sep
2009 2009 2008 2009 2008
Unaudited Unaudited Unaudited Unaudited Unaudited
US Dollar million
Gold
income 1,101 773 885 2,533 2,761
By-products
(note 3) 23 30 14 73 43
Interest
received 16 11 32 36 56
1,140 814 930 2,642 2,859
3. Cost of sales
Quarter ended Nine months ended
Sep Jun Sep Sep Sep
2009 2009 2008 2009 2008
Unaudited Unaudited Unaudited Unaudited Unaudited
SA Rand million
Cash operating
costs (4,719) (4,280) (4,540) (13,628) (11,916)
By-products
revenue
(note 2) 173 244 106 625 332
By-products
cash operating
costs (74) (105) (57) (275) (221)
(4,620) (4,141) (4,491) (13,278) (11,805)
Other
cash
costs (222) (182) (177) (611) (538)
Total
cash costs (4,842) (4,323) (4,668) (13,888) (12,343)
Retrenchment
costs (17) (40) (14) (71) (56)
Rehabilitation
and other
non-cash
costs (96) (32) (102) (187) (221)
Production
costs (4,955) (4,395) (4,784) (14,147) (12,620)
Amortisation
of tangible
assets (1,107) (1,095) (1,111) (3,463) (3,233)
Amortisation of
intangible
assets (4) (4) (4) (14) (11)
Total
production
costs (6,066) (5,495) (5,899) (17,624) (15,864)
Inventory
change (102) 282 (249) 622 234
(6,168) (5,212) (6,148) (17,001) (15,630)
Quarter ended Nine months ended
Sep Jun Sep Sep Sep
2009 2009 2008 2009 2008
Unaudited Unaudited Unaudited Unaudited Unaudited
US Dollar million
Cash
operating
costs (608) (507) (584) (1,583) (1,548)
By-products
revenue
(note 2) 23 30 14 73 43
By-products cash
operating
costs (10) (13) (8) (32) (29)
(595) (490) (578) (1,542) (1,534)
Other
cash costs (29) (22) (23) (71) (70)
Total cash
costs (624) (512) (601) (1,613) (1,604)
Retrenchment
costs (2) (5) (2) (8) (7)
Rehabilitation
and other
non-cash
costs (12) (4) (13) (22) (28)
Production
costs (638) (521) (616) (1,643) (1,639)
Amortisation
of tangible
assets (143) (130) (143) (400) (420)
Amortisation
of intangible
assets (1) (1) - (2) (1)
Total
production
costs (781) (652) (759) (2,045) (2,060)
Inventory
change (14) 34 (32) 65 31
(796) (617) (790) (1,981) (2,029)
Rounding of figures may result in computational discrepancies.
4. (Loss) gain on non-hedge derivatives and other commodity contracts
Quarter ended
Sep Jun Sep
2009 2009 2008
Unaudited Unaudited Unaudited
SA Rand million
(Loss) gain on realised non-hedge
derivatives (139) 1,243 (519)
Realised loss on other commodity
contracts - - -
Loss on hedge buyback costs (6,315) - -
(Loss) gain on unrealised non-hedge
derivatives (4,762) 540 666
Unrealised gain on other commodity
physical borrowings - - 1
Provision reversed for gain on future
deliveries of other commodities - - -
(11,216) 1,783 148
Nine months ended
Sep Sep
2009 2008
Unaudited Unaudited
SA Rand million
(Loss) gain on realised non-hedge
derivatives 2,970 (1,797)
Realised loss on other commodity
contracts - (253)
Loss on hedge buyback costs (6,315) (7,765)
(Loss) gain on unrealised non-hedge
derivatives (5,883) 2,876
Unrealised gain on other commodity
physical borrowings - 26
Provision reversed for gain on future
deliveries of other commodities - 37
(9,228) (6,875)
Quarter ended
Sep Jun Sep
2009 2009 2008
Unaudited Unaudited Unaudited
US Dollar million
(Loss) gain on realised non-hedge
derivatives (19) 149 (66)
Realised loss on other commodity
contracts - - -
Loss on hedge buyback costs (797) - -
(Loss) gain on unrealised non-hedge
derivatives (606) 82 158
Unrealised gain on other commodity
physical borrowings - - -
Provision reversed for gain on future
deliveries of other commodities - - -
(1,421) 231 92
Nine months ended
Sep Sep
2009 2008
Unaudited Unaudited
US Dollar million
(Loss) gain on realised non-hedge
derivatives 319 (230)
Realised loss on other commodity
contracts - (32)
Loss on hedge buyback costs (797) (979)
(Loss) gain on unrealised non-hedge
derivatives (692) 705
Unrealised gain on other commodity
physical borrowings - 3
Provision reversed for gain on future
deliveries of other commodities - 5
(1,170) (528)
5. Other operating expenses
Quarter ended
Sep Jun Sep
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 (11) (24) (49)
Miscellaneous (1) (3) -
(36) (51) (73)
Nine months ended
Sep Sep
2009 2008
Unaudited Unaudited
SA Rand million
Pension and medical defined benefit
provisions (73) (72)
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 (62) (17)
Miscellaneous (2) -
(137) (89)
Quarter ended
Sep Jun Sep
2009 2009 2008
Unaudited Unaudited Unaudited
US Dollar million
Pension and medical defined benefit
provisions (3) (3) (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 (2) (3) (6)
Miscellaneous - - -
(5) (6) (9)
Nine months ended
Sep Sep
2009 2008
Unaudited Unaudited
US Dollar million
Pension and medical defined benefit
provisions (9) (9)
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 (7) (2)
Miscellaneous - -
(16) (11)
6. Operating special items
Quarter ended
Sep Jun Sep
2009 2009 2008
Unaudited Unaudited Unaudited
SA Rand million
Reimbursement of indirect tax expenses 11 12 1
Siguiri royalty payment calculation
dispute with the Guinean
Administration - - -
ESOP and BEE costs resulting from
rights offer - - -
Impairment of tangible assets (note 8) (94) - (3)
Recovery of loan - - 34
Recovery (loss) on consignment stock 7 (116) -
Provision for bad debt - Pamodzi Gold - (3) -
(Loss) profit on disposal and
abandonment of land, mineral rights,
tangible assets and exploration
properties (note 8) (156) 839 82
Insurance claim recovery (note 8) - 7 -
(Loss) profit on disposal of investment
in associate (note 8) - - (12)
Nufcor Uranium Trust contributions by
other members (note 8) - - 19
(231) 739 121
Nine months ended
Sep Sep
2009 2008
Unaudited Unaudited
SA Rand million
Reimbursement of indirect tax expenses 21 77
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) (94) (7)
Recovery of loan - 34
Recovery (loss) on consignment stock (109) -
Provision for bad debt - Pamodzi Gold (65) -
(Loss) profit on disposal and
abandonment of land, mineral rights,
tangible assets and exploration
properties (note 8) 689 457
Insurance claim recovery (note 8) 7 -
(Loss) profit on disposal of investment
in associate (note 8) - 18
Nufcor Uranium Trust contributions by
other members (note 8) - -
448 476
Quarter ended
Sep Jun Sep
2009 2009 2008
Unaudited Unaudited Unaudited
US Dollar million
Reimbursement of indirect tax expenses 1 2 -
Siguiri royalty payment calculation
dispute with the Guinean
Administration - - -
ESOP and BEE costs resulting from
rights offer - - -
Impairment of tangible assets (note 8) (13) - -
Recovery of loan - - 4
Recovery (loss) on consignment stock 1 (15) -
Provision for bad debt - Pamodzi Gold - - -
(Loss) profit on disposal and
abandonment of land, mineral rights,
tangible assets and exploration
properties (note 8) (21) 105 11
Insurance claim recovery (note 8) - 1 -
(Loss) profit on disposal of investment
in associate (note 8) - - (2)
Nufcor Uranium Trust contributions by
other members (note 8) - - 3
(31) 92 16
Nine months ended
Sep Sep
2009 2008
Unaudited Unaudited
US Dollar million
Reimbursement of indirect tax
expenses 3 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) (13) (1)
Recovery of loan - 4
Recovery (loss) on consignment stock (14) -
Provision for bad debt - Pamodzi Gold (6) -
(Loss) profit on disposal and
abandonment of land, mineral rights,
tangible assets and exploration
properties (note 8) 84 60
Insurance claim recovery (note 8) 1 -
(Loss) profit on disposal of investment
in associate (note 8) - 2
Nufcor Uranium Trust contributions by
other members (note 8) - -
55 62
Rounding of figures may result in computational discrepancies.
7. Taxation
Quarter ended
Sep Jun Sep
2009 2009 2008
Unaudited Unaudited Unaudited
SA Rand million
South African taxation
Mining tax 14 (108) -
Non-mining tax 77 (126) (21)
Under provision prior year (12) (13) (10)
Deferred taxation:
Temporary differences (44) 12 (252)
Unrealised non-hedge
derivatives and other
commodity contracts 1,317 (238) 4
Change in statutory tax rate - - -
Foreign taxation 1,353 (473) (279)
Normal taxation (262) (379) (84)
(Under) over provision prior year (27) (3) 5
Deferred taxation:
Temporary differences 393 (155) (207)
Unrealised non-hedge derivatives
and other commodity contracts 193 94 (12)
297 (442) (298)
1,650 (915) (577)
Nine months ended
Sep Sep
2009 2008
Unaudited Unaudited
SA Rand million
South African taxation
Mining tax (93) -
Non-mining tax (79) (67)
Under provision prior year (40) (61)
Deferred taxation:
Temporary differences (355) 607
Unrealised non-hedge
derivatives and other
commodity contracts 1,247 (742)
Change in statutory tax rate - 69
Foreign taxation 680 (193)
Normal taxation (777) (420)
(Under) over provision prior year (41) 41
Deferred taxation:
Temporary differences 190 (224)
Unrealised non-hedge derivatives
and other commodity contracts 299 (104)
(329) (707)
351 (900)
Quarter ended
Sep Jun Sep
2009 2009 2008
Unaudited Unaudited Unaudited
US Dollar million
South African taxation
Mining tax 2 (13) -
Non-mining tax 10 (15) (3)
Under provision prior year (2) (2) (1)
Deferred taxation:
Temporary differences (6) 2 (33)
Unrealised non-hedge
derivatives and other
commodity contracts 167 (30) 5
Change in statutory tax rate - - -
Foreign taxation 171 (58) (32)
Normal taxation (34) (46) (11)
(Under) over provision prior year (4) - 1
Deferred taxation:
Temporary differences 51 (21) (26)
Unrealised non-hedge derivatives
and other commodity contracts 24 12 (1)
38 (55) (37)
209 (113) (69)
Nine months ended
Sep Sep
2009 2008
Unaudited Unaudited
US Dollar million
South African taxation
Mining tax (11) (1)
Non-mining tax (9) (10)
Under provision prior year (5) (8)
Deferred taxation:
Temporary differences (36) 75
Unrealised non-hedge
derivatives and other
commodity contracts 154 (90)
Change in statutory tax rate - 9
Foreign taxation 93 (24)
Normal taxation (93) (56)
(Under) over provision prior year (5) 6
Deferred taxation:
Temporary differences 25 (29)
Unrealised non-hedge derivatives
and other commodity contracts 38 (13)
(36) (92)
57 (115)
8. Headline (loss) earnings
Quarter ended
Sep Jun Sep
2009 2009 2008
Unaudited Unaudited Unaudited
SA Rand million
The (loss) profit attributable to
equity shareholders has been adjusted
by the following to arrive at
headline (loss) earnings:
(Loss) profit attributable to equity
shareholders (8,245) 2,304 (247)
Impairment of tangible assets (note 6) 94 - 3
Loss (profit) on disposal and
abandonment of land, mineral
rights, tangible assets and
exploration properties (note 6) 156 (839) (82)
Nufcor Uranium Trust contributions
by other members (note 6) - - (19)
Insurance claim recovery (note 6) - (7) -
Loss (profit) on disposal of
investment in associate (note 6) - - 12
Profit on disposal of discontinued assets - - (1)
Impairment of investment in associates (2) 3 21
Profit on disposal of assets in associate - - -
Taxation on items above - current portion (48) 201 2
Taxation on items above - deferred
portion (22) (32) 13
Discontinued operations taxation on
items above - - -
Cents per share (1) (8,068) 1,631 (298)
Headline (loss) earnings (2,237) 455 (86)
Nine months ended
Sep Sep
2009 2008
Unaudited Unaudited
SA Rand million
The (loss) profit attributable to equity
shareholders has been adjusted
by the following to arrive at
headline (loss) earnings:
(Loss) profit attributable to equity shareholders (5,940) (4,236)
Impairment of tangible assets (note 6) 94 7
Loss (profit) on disposal and
abandonment of land, mineral
rights, tangible assets and
exploration properties (note 6) (689) (457)
Nufcor Uranium Trust contributions
by other members (note 6) - -
Insurance claim recovery (note 6) (7) -
Loss (profit) on disposal of
investment in associate (note 6) - (18)
Profit on disposal of discontinued assets - (218)
Impairment of investment in associates 3 35
Profit on disposal of assets in associate - (23)
Taxation on items above - current portion 156 7
Taxation on items above - deferred portion (54) 17
Discontinued operations taxation on items above - (6)
Cents per share (1) (6,437) (4,891)
Headline (loss) earnings (1,791) (1,609)
Quarter ended
Sep Jun Sep
2009 2009 2008
Unaudited Unaudited Unaudited
US Dollar million
The (loss) profit attributable to
equity shareholders has been adjusted
by the following to arrive at
headline (loss) earnings:
(Loss) profit attributable to equity
shareholders (1,042) 299 51
Impairment of tangible assets (note 6) 13 - -
Loss (profit) on disposal and
abandonment of land, mineral
rights, tangible assets and
exploration properties (note 6) 21 (105) (11)
Nufcor Uranium Trust contributions
by other members (note 6) - - (3)
Insurance claim recovery (note 6) - (1) -
Loss (profit) on disposal of
investment in associate (note 6) - - 2
Profit on disposal of discontinued assets - - -
Impairment of investment in associates - - 3
Profit on disposal of assets in associate - - -
Taxation on items above - current portion (6) 26 -
Taxation on items above - deferred portion (3) (4) 2
Discontinued operations taxation on
items above - - -
Cents per share (1) (1,018) 215 44
Headline (loss) earnings (282) 60 13
Nine months ended
Sep Sep
2009 2008
Unaudited Unaudited
US Dollar million
The (loss) profit attributable to equity
shareholders has been adjusted
by the following to arrive at
headline (loss) earnings:
(Loss) profit attributable to equity shareholders (743) (179)
Impairment of tangible assets (note 6) 13 1
Loss (profit) on disposal and
abandonment of land, mineral
rights, tangible assets and
exploration properties (note 6) (84) (60)
Nufcor Uranium Trust contributions
by other members (note 6) - -
Insurance claim recovery (note 6) (1) -
Loss (profit) on disposal of
investment in associate (note 6) - (2)
Profit on disposal of discontinued assets - (27)
Impairment of investment in associates - 4
Profit on disposal of assets in associate - (3)
Taxation on items above - current portion 19 1
Taxation on items above - deferred portion (7) 2
Discontinued operations taxation on
items above - (1)
Cents per share (1) (803) (263)
Headline (loss) earnings (223) (87)
(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
Sep Jun Sep
2009 2009 2008
Unaudited Unaudited Unaudited
Authorised number of shares:
Ordinary shares of 25 SA cents
each 600,000,000 600,000,000 400,000,000
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 362,003,085 354,241,602 350,677,750
E ordinary shares in issue 3,832,568 3,879,290 4,002,887
Total ordinary shares: 365,835,653 358,120,892 354,680,637
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 356,194,586 354,198,056 342,692,446
E ordinary shares 3,848,172 3,896,280 4,018,901
Fully vested options 622,613 551,521 405,584
Weighted average number of
shares 360,665,371 358,645,857 347,116,931
Dilutive potential of share
options - 897,098 786,816
Diluted number of ordinary
shares (1) 360,665,371 359,542,955 347,903,747
Nine months ended
Sep Sep
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 362,003,085 350,677,750
E ordinary shares in issue 3,832,568 4,002,887
Total ordinary shares: 365,835,653 354,680,637
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 354,685,548 299,550,334
E ordinary shares 3,894,634 4,068,636
Fully vested options 774,457 418,312
Weighted average number of shares 359,354,639 304,037,282
Dilutive potential of share options - -
Diluted number of ordinary shares (1) 359,354,639 304,037,282
(1) The basic and diluted number of ordinary shares is the same for the quarter
ended September 2009, nine months ended September 2009 and nine months ended
September 2008 as the effects of shares for performance related options are
anti-dilutive.
10. Share capital and premium
As at
Sep Jun Dec Sep
2009 2009 2008 2008
Unaudited Unaudited Unaudited Unaudited
SA Rand million
Balance at beginning of
period 38,248 38,248 23,324 23,324
Ordinary shares issued 2,409 202 14,946 14,139
E ordinary shares
cancelled (17) (11) (22) (17)
Sub-total 40,640 38,439 38,248 37,446
Redeemable preference
shares held within the
group (313) (313) (313) (313)
Ordinary shares held
within the group (259) (264) (273) (278)
E ordinary shares held
within group (309) (315) (326) (330)
Balance at end of period 39,759 37,547 37,336 36,525
As at
Sep Jun Dec Sep
2009 2009 2008 2008
Restated (1)
Unaudited Unaudited Unaudited Unaudited
US Dollar million
Balance at beginning
of period 5,625 5,625 3,752 3,752
Ordinary shares
issued 308 22 1,875 1,794
E ordinary shares
cancelled (2) (1) (3) (2)
Sub-total 5,931 5,645 5,625 5,543
Redeemable
preference shares
held within the
group (53) (53) (53) (53)
Ordinary shares held
within the group (38) (38) (40) (40)
E ordinary shares
held within group (45) (46) (47) (47)
Balance at end of
period 5,794 5,508 5,485 5,403
(1) During 2009, the group changed its accounting policy to account for equity
using historical rates of exchange. The effect of the change has been
calculated retrospectively.
11. Exchange rates
Sep Jun
2009 2009
Unaudited Unaudited
ZAR/USD average for the year to date 8.70 9.18
ZAR/USD average for the quarter 7.77 8.40
ZAR/USD closing 7.51 7.71
ZAR/AUD average for the year to date 6.48 6.49
ZAR/AUD average for the quarter 6.47 6.42
ZAR/AUD closing 6.62 6.21
BRL/USD average for the year to date 2.08 2.20
BRL/USD average for the quarter 1.87 2.07
BRL/USD closing 1.77 1.96
ARS/USD average for the year to date 3.70 3.63
ARS/USD average for the quarter 3.83 3.73
ARS/USD closing 3.84 3.80
Dec Sep
2008 2008
Unaudited Unaudited
ZAR/USD average for the year to date 8.25 7.69
ZAR/USD average for the quarter 9.92 7.77
ZAR/USD closing 9.46 8.27
ZAR/AUD average for the year to date 6.93 7.02
ZAR/AUD average for the quarter 6.67 6.86
ZAR/AUD closing 6.57 6.66
BRL/USD average for the year to date 1.84 1.69
BRL/USD average for the quarter 2.28 1.67
BRL/USD closing 2.34 1.93
ARS/USD average for the year to date 3.16 3.11
ARS/USD average for the quarter 3.33 3.04
ARS/USD closing 3.45 3.12
Rounding of figures may result in computational discrepancies.
12. Capital commitments
Sep Jun Dec Sep
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) 1,096 1,333 775 2,292
Sep Jun Dec Sep
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) 146 173 82 277
(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 September 2009 are
detailed below:
Guarantees and contingencies (millions) SA rand US dollar
Contingent liabilities
Groundwater pollution - South Africa (1) - -
Deep groundwater pollution - South Africa (2) - -
Sales tax on gold deliveries - Brazil (3) 624 83
Other tax disputes - Brazil (4) 128 17
Withholding taxes - Ghana (5) 49 6
Financial Guarantees
Oro Group (Pty) Ltd (6) 100 13
901 119
AngloGold Ashanti is subject to contingencies pursuant to environmental laws
and regulations that may in future require the Group to take corrective action
as follows:
(1) Groundwater pollution - South Africa - AngloGold Ashanti has identified
groundwater contamination plumes at its Vaal River and West Wits operations,
which have occurred primarily as a result of seepage from mine residue
stockpiles. Numerous scientific, technical and legal studies have been
undertaken since 2002 to assist in determining the magnitude of the
contamination and to find sustainable remediation solutions. The company has
instituted processes to reduce future potential seepage and it has been
demonstrated that Monitored Natural Attenuation (MNA) by the existing
environment will contribute to improvement in some instances. Furthermore,
literature reviews, field trials and base line modelling techniques suggest,
but are not yet proven, that the use of phyto-technologies can address the soil
and groundwater contamination at all South African operations. Subject to the
completion of trials and the technology being a proven remediation technique,
no reliable estimate can be made for the obligation at this time.
(2) Deep groundwater pollution - South Africa - AngloGold Ashanti has
identified a flooding and future pollution risk posed by deep groundwater in
the Klerksdorp and Far West Rand gold fields. Various studies have been
undertaken by AngloGold Ashanti since 1999. However, due to the interconnected
nature of mining operations, any proposed solution needs to be a combined one
that is supported by all the mines located in these gold fields.
Toward this the Department of Mineral Resources and affected mining companies
are now involved in the development of a "Regional Mine Closure Strategy".
Nevertheless, in view of the limitation of current information for the accurate
estimation of a liability, no reliable estimate can be made for the obligation
at this time.
(3) Sales tax on gold deliveries - Brazil - Mineracao Serra Grande S.A. (MSG),
received two tax assessments from the State of Goias related to payments of
sales taxes on gold deliveries for export. 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
$46m. In November 2006 the administrative council`s second chamber ruled in
favour of MSG and fully cancelled the tax liability related to the first
period. The State of Goias has appealed to the full board of the State of Goias
tax administrative council. The second assessment was issued by the State of
Goias in October 2006 on the same grounds as the first one, and the
attributable share of the assessment is approximately $28m. The company
believes both assessments are in violation of Federal legislation on sales
taxes.
MSG received a tax assessment in October 2003 from the State of Minas Gerais
related to sales taxes on gold. 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
$9m.
(4) AngloGold subsidiaries in Brazil are involved in various disputes with tax
authorities. These disputes involve federal tax assessments including income
tax, royalties, social contributions and annual property tax. The amount
involved is approximately $17m.
(5) Withholding Taxes - Ghana - AngloGold Ashanti (Ghana) Limited received a
tax assessment for $6m during September 2009 following an audit by the tax
authorities related to indirect taxes on various items. Management is of the
opinion that the indirect taxes are not payable and the company has lodged an
objection.
(6) Provision of surety - South Africa - AngloGold Ashanti has provided
sureties in favour of a lender on a gold loan facility with its affiliate Oro
Africa (Pty) Ltd and one of its subsidiaries to a maximum value of R100m
($13m). The suretyship agreements have a termination notice period of 90 days.
14. Concentration of risk
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
$25m at 30 September 2009 (30 June 2009: $17m). The last audited value added
tax return was for the period ended 31 August 2009 and at the balance sheet
date was $21m. 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 $48m at 30
September 2009 (30 June 2009: $44m). 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 $43m have been lodged with the Customs and Excise
authorities, whilst claims for refund of $5m 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
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 borrowings are interest bearing.
17. Post balance sheet events
After close of business on 15 October 2009, South African time, the Canadian
Courts in British Columbia, approved the scheme of arrangement wherein Moto
Goldmines Limited became a wholly owned subsidiary of a joint venture between
AngloGold Ashanti Limited and Randgold Resources Limited. When any remaining
conditions precedent have been fulfilled, AngloGold Ashanti will equity account
the results of the joint venture.
18. Announcements
On 31 August 2009, AngloGold Ashanti announced the launch of an equity offering
to fund its proposed 50% acquisition of Moto Goldmines Limited. This was
followed by an announcement on 1 September 2009 detailing the placing of
7,624,162 AngloGold Ashanti ordinary shares at an issue price of $37.25 per
American Depositary Share (ADR)) (or R288.32 per ordinary share) which price
represented an approximate 3% discount to the closing price of an AngloGold
Ashanti ADR on the NYSE on 31 August 2009. The offering closed on 8 September
2009 and total proceeds of some $284 million was received.
On 5 October 2009, AngloGold Ashanti Limited and the De Beers Group of
Companies announced the formation of a joint venture to explore for, and
ultimately mine, gold and other minerals and metals, excluding diamonds, on
marine deposits located in, or adjacent to, the area between the high water
mark and the edge of the continental shelf on a worldwide basis.
Pursuant to its announcement of 5 August 2009, AngloGold Ashanti Limited
announced on 15 October 2009 that it had acquired a 50% interest in Moto
Goldmines Limited in a back-to-back joint venture agreement entered into with
Randgold Resources Limited following the acquisition by Randgold of the entire
issued share capital of Moto.
19. Dividend
Interim Dividend No. 106 of 60 South African cents of approximately 4.54 UK
pence or approximately 0.10956 cedis per share was paid to registered
shareholders on 28 August 2009, while a dividend of 1.7916 Australian cents per
CHESS Depositary Interest (CDI) was paid on the same day. On 31 August 2009, a
dividend of 0.0010956 cedis per Ghanaian Depositary Share (GhDS) was paid to
holders thereof. Each CDI represents one-fifth of an ordinary share, and 100
GhDSs represents one ordinary share. A dividend was paid to holders of American
Depositary Receipts (ADRs) on 8 September 2009 at a rate of 7.6553 US cents per
American Depositary Share (ADS). Each ADS represents one ordinary share.
In addition, directors declared interim 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 were paid on
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
30 October 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
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: 02/11/2009 07:55:01 Produced by the JSE SENS Department.
The SENS service is an information dissemination service administered by the
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or
implicitly, represent, warrant or in any way guarantee the truth, accuracy or
completeness of the information published on SENS. The JSE, their officers,
employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature,
howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
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