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ANG
ANANO
ANG - Anglogold Ashanti Limited - Report to shareholders for the quarter and
year ended 31 December 2010
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 year ended 31 December 2010
Group results for the quarter....
- Adjusted headline earnings, excluding accelerated hedge buy-back costs,
$294m.
- Hedge book eliminated, giving full exposure to gold price from 7 October.
- Net debt of $1.3bn, better than pro-forma guidance due to robust cash
generation.
- Production of 1.148Moz at a total cash cost of $672/oz; both improved on
guidance.
- Strong performances from West Wits, Cerro Vanguardia and Siguiri.
- Australasia region delivers strong performance of 102,000oz, with significant
cost improvement.
- Uranium production of 374,000lbs.
- Tropicana project approved for development after successful feasibility
study.
- Strong safety performance in fourth quarter with no fatal accidents.
For the year....
- Adjusted headline earnings, excluding accelerated hedge buy-back costs,
$787m.
- Production of 4.52Moz at a total cash cost of $638/oz; within exchange-rate
adjusted guidance.
- Uranium production of 1.46Mlbs on continued strong grade and recovery
performance.
- Geita, Cripple Creek and South Africa turnarounds successfully executed.
- Final dividend of 80 South African cents per share (approximately 11 US cents
per share), declared, resulting in a
- total dividend of 145 South African cents per share (approximately 20 US cents
per share) for the 2010 year.
Quarter
ended ended
Dec Sep
2010 2010
SA rand / Metric
Operating review
Gold
Produced - kg / oz (000) 35,703 36,129
Price received - R/kg / $/oz 99,671 (47,750)
Price received excluding hedge
buy-back costs - R/kg / $/oz 303,454 267,707
Total cash costs - R/kg / $/oz 148,474 151,007
Total production costs - R/kg / $/oz 201,465 187,695
Financial review
Adjusted gross (loss) profit - Rm / $m (3,718) (8,670)
Adjusted gross profit excluding hedge
buy-back costs - Rm / $m 3,598 2,969
Profit (loss) attributable to equity
shareholders - Rm / $m 404 443
- cents/share 105 120
Adjusted headline loss - Rm / $m (5,263) (8,389)
- cents/share (1,368) (2,277)
Adjusted headline earnings excluding
hedge buy-back costs - Rm / $m 2,026 2,184
- cents/share 527 593
Cash flow from operating activities
excluding hedge buy-back costs - Rm / $m 5,076 3,238
Capital expenditure - Rm / $m 2,572 1,855
Year
ended ended
Dec Dec
2010 2009
SA rand / Metric
Operating review
Gold
Produced - kg / oz (000) 140,418 143,049
Price received - R/kg / $/oz 135,862 201,805
Price received excluding hedge
buy-back costs - R/kg / $/oz 271,018 246,048
Total cash costs - R/kg / $/oz 149,577 136,595
Total production costs - R/kg / $/oz 190,889 171,795
Financial review
Adjusted gross (loss) profit - Rm / $m (8,027) 3,686
Adjusted gross profit excluding hedge
buy-back costs - Rm / $m 10,927 10,001
Profit (loss) attributable to equity
shareholders - Rm / $m 637 (2,762)
- cents/share 171 (765)
Adjusted headline loss - Rm / $m (12,210) (211)
- cents/share (3,283) (58)
Adjusted headline earnings excluding
hedge buy-back costs - Rm / $m 5,652 5,795
- cents/share 1,520 1,604
Cash flow from operating activities
excluding hedge buy-back costs - Rm / $m 12,603 10,096
Capital expenditure - Rm / $m 7,413 8,726
Quarter
ended ended
Dec Sep
2010 2010
US dollar / Imperial
Operating review
Gold
Produced - kg / oz (000) 1,148 1,162
Price received - R/kg / $/oz 452 (239)
Price received excluding hedge
buy-back costs - R/kg / $/oz 1,372 1,141
Total cash costs - R/kg / $/oz 672 643
Total production costs - R/kg / $/oz 912 800
Financial review
Adjusted gross (loss) profit - Rm / $m (540) (1,229)
Adjusted gross profit excluding hedge
buy-back costs - Rm / $m 522 408
Profit (loss) attributable to equity
shareholders - Rm / $m 56 51
- cents/share 15 14
Adjusted headline loss - Rm / $m (764) (1,184)
- cents/share (199) (321)
Adjusted headline earnings excluding
hedge buy-back costs - Rm / $m 294 303
- cents/share 76 82
Cash flow from operating activities
excluding hedge buy-back costs - Rm / $m 679 424
Capital expenditure - Rm / $m 365 253
Year
ended ended
Dec Dec
2010 2009
US dollar / Imperial
Operating review
Gold
Produced - kg / oz (000) 4,515 4,599
Price received - R/kg / $/oz 561 751
Price received excluding hedge
buy-back costs - R/kg / $/oz 1,159 925
Total cash costs - R/kg / $/oz 638 514
Total production costs - R/kg / $/oz 816 646
Financial review
Adjusted gross (loss) profit - Rm / $m (1,191) 412
Adjusted gross profit excluding hedge
buy-back costs - Rm / $m 1,507 1,209
Profit (loss) attributable to equity
shareholders - Rm / $m 76 (320)
- cents/share 20 (89)
Adjusted headline loss - Rm / $m (1,758) (50)
- cents/share (473) (14)
Adjusted headline earnings excluding
hedge buy-back costs - Rm / $m 787 708
- cents/share 212 196
Cash flow from operating activities
excluding hedge buy-back costs - Rm / $m 1,669 1,299
Capital expenditure - Rm / $m 1,015 1,027
$ represents US dollar, unless otherwise stated.
Rounding of figures may result in computational discrepancies.
Operations at a glance
for the quarter ended 31 December 2010
Production
oz (000) % Variance 2
SOUTH AFRICA 476 -
Great Noligwa 34 (6)
Kopanang 78 (1)
Moab Khotsong 76 (8)
Tau Lekoa - (100)
Mponeng 143 4
Savuka 11 38
TauTona 81 14
Surface Operations 52 (2)
CONTINENTAL AFRICA 374 -
Ghana
Iduapriem 58 2
Obuasi 66 (12)
Guinea
Siguiri - Attributable 85% 71 15
Mali
Morila - Attributable 40% 3 24 4
Sadiola - Attributable 41% 3 29 (3)
Yatela - Attributable 40% 3 9 (10)
Namibia
Navachab 28 22
Tanzania
Geita 90 (3)
Non-controlling interests, exploration
and other
AUSTRALASIA 102 10
Australia
Sunrise Dam 102 10
Exploration and other
AMERICAS 196 (10)
Argentina
Cerro Vanguardia - Attributable 92.50% 50 4
Brazil
AngloGold Ashanti Brasil Mineracao 85 (9)
Serra Grande - Attributable 50% 19 (5)
United States of America
Cripple Creek & Victor 42 (25)
Non-controlling interests, exploration
and other
OTHER
Sub-total 1,148 (1)
Equity accounted investments included above
AngloGold Ashanti
Total cash costs
$/oz % Variance 2
SOUTH AFRICA 616 4
Great Noligwa 915 7
Kopanang 658 (1)
Moab Khotsong 669 22
Tau Lekoa - (100)
Mponeng 485 2
Savuka 885 16
TauTona 645 (12)
Surface Operations 536 28
CONTINENTAL AFRICA 790 9
Ghana
Iduapriem 746 30
Obuasi 949 14
Guinea
Siguiri - Attributable 85% 687 (2)
Mali
Morila - Attributable 40% 3 760 (4)
Sadiola - Attributable 41% 3 783 26
Yatela - Attributable 40% 3 1,386 4
Namibia
Navachab 748 -
Tanzania
Geita 749 6
Non-controlling interests, exploration
and other
AUSTRALASIA 894 (16)
Australia
Sunrise Dam 860 (19)
Exploration and other
AMERICAS 465 7
Argentina
Cerro Vanguardia - Attributable 92.50% 357 (5)
Brazil
AngloGold Ashanti Brasil Mineracao 460 11
Serra Grande - Attributable 50% 509 9
United States of America
Cripple Creek & Victor 558 13
Non-controlling interests, exploration
and other
OTHER
Sub-total 672 5
Equity accounted investments included above
AngloGold Ashanti
Adjusted
gross profit (loss) excluding
hedge buy-back costs 1
$m $m Variance 2
SOUTH AFRICA 239 50
Great Noligwa 6 3
Kopanang 33 11
Moab Khotsong 16 (7)
Tau Lekoa - (1)
Mponeng 106 22
Savuka 4 2
TauTona 33 19
Surface Operations 42 4
CONTINENTAL AFRICA 141 32
Ghana
Iduapriem 25 3
Obuasi 10 6
Guinea
Siguiri - Attributable 85% 44 19
Mali
Morila - Attributable 40% 3 14 5
Sadiola - Attributable 41% 3 15 (1)
Yatela - Attributable 40% 3 (3) (1)
Namibia
Navachab 17 10
Tanzania
Geita 26 1
Non-controlling interests, exploration
and other (5) (9)
AUSTRALASIA 41 46
Australia
Sunrise Dam 44 49
Exploration and other (4) (4)
AMERICAS 125 (9)
Argentina
Cerro Vanguardia - Attributable 92.50% 39 13
Brazil
AngloGold Ashanti Brasil Mineracao 32 (23)
Serra Grande - Attributable 50% 13 3
United States of America
Cripple Creek & Victor 27 (2)
Non-controlling interests, exploration
and other 14 -
OTHER 2 (2)
Sub-total 548 117
Equity accounted investments included above (26) (3)
AngloGold Ashanti 522 114
1 Refer to note B "Non-GAAP disclosure" for the definition.
2 Variance December 2010 quarter on Septem ber 2010 quarter - increase
(decrease).
3 Equity accounted joint ventures.
Rounding of figures may result in computational discrepancies.
Financial and Operating Report
OVERVIEW FOR THE QUARTER
FINANCIAL AND CORPORATE REVIEW
As previously announced, AngloGold Ashanti eliminated its hedge book on 7
October 2010, ending the contractual sale of a portion of its production at
discounts to market prices. The company now has full exposure to the price of
gold, which increases its potential for cash-flow generation and earnings. Of
the $2.64bn spent to undertake this final restructuring of the hedge book, which
straddled September and October, $1.58bn was spent in the third quarter and the
remaining $1.06bn in October of the fourth quarter.
Turning to the balance sheet, strong cash generation during the quarter and the
year left the company with a net debt level (excluding the mandatory convertible
bonds) of $1.3bn, better than guidance of $1.7bn given on 11 November. Debt
maturities are well spread and range from three to 30 years.
Adjusted headline earnings, excluding the hedge buy-back and related costs, were
$294m, or 76 US cents a share, compared with $303m, or 82 US cents the previous
quarter. The result is especially significant, given that the third quarter
earnings were boosted by a once-off tax credit of $82m. The company generated
cash flow from operations, excluding hedge buy back costs, of $679m.
After taking account of the hedge buy back costs, the company posted an adjusted
headline loss of $764m for the quarter and a profit attributable to ordinary
shareholders of $56m.
OPERATING RESULTS
Production and total cash costs for the three months to 31 December were both
within the guidance set by the company. Production over the period was 1.148Moz,
following the sale of the Tau Lekoa mine, compared to 1.162Moz the previous
quarter. Total cash costs rose 5% to $672/oz, during a quarter again
characterized by significant appreciation in the Brazilian real, the Australian
dollar and the South African rand. Strong production performances were delivered
by several key operations, including the West Wits mines in South Africa,
Sunrise Dam in Australia, Siguiri in Guinea, Navachab in Namibia and Cerro
Vanguardia in Argentina. Uranium production was 374,000lbs, compared to
389,000lbs in the third quarter.
Guidance for the fourth quarter was 1.14Moz at a total cash cost of $675/oz,
assuming an average exchange rate of R6.75/$ and $640/oz assuming a weaker rand
at R7.25/$. This compares to an average realised exchange rate of R6.88/$ over
the quarter.
SAFETY
AngloGold Ashanti delivered a fatality free performance for only the second time
in the company`s history. This demonstrates not only the strides made in
changing working practices and attitudes toward safety by every member in the
organisation, but also the possibility to work safely at depth. This achievement
provides powerful motivation to redouble efforts to eliminate injuries from the
workplace. The all-injury frequency rate ended the year at 11.5 per million
hours worked - an improvement of 11% on the level of 2009. AngloGold is in the
process of implementing a new procedure for accident investigation and incident
management, as well as an electronic Workplace Management Reporting System
(WMRS) across all operations to improve incident analysis. This will create a
platform from which specific initiatives can be developed to drive further
improvements in safety.
OPERATING REVIEW
The South Africa operations produced 476,000oz at a total cash cost of $616/oz
in the fourth quarter of 2010, compared with 478,000oz at a total cash cost of
$594/oz the previous quarter. The performance was driven by another strong set
of results from the core operations, with rand-denominated costs improving by 2%
from the previous quarter as management continued to focus on improving safety
and productivity. The success of the business improvement interventions made in
the region are evident in overall productivity figures for AngloGold Ashanti`s
South African mines, which are 14% higher in the fourth quarter, compared with
the same period in 2009. At the West Wits operations, Mponeng, the company`s
largest mine, output increased by 4% to 143,000oz due to increased tonnages
resulting from fewer safety related stoppages and improved tramming
efficiencies. The neighbouring TauTona mine delivered a 14% rise in production
to 81,000oz, driven by improved grade from higher face values, together with
increased flexibility across its high grade areas. At the Vaal River operations,
production from Moab Khotsong declined by 8% to 76,000oz due to grade challenges
arising from ore dilution and the overall mining mix. Costs rose 22% to $669/oz.
Following a successful effort in returning Great Noligwa to profitability,
production declined 6% to 34,000oz because of an increase in off-reef mining
necessitated by the geological structure encountered during the period.
Kopanang`s output was marginally lower at 78,000oz as lower volumes were mined.
The Surface operations, which replaced Tau Lekoa feed with marginal ore, had a
2% decrease in production to 52,000oz.
The Continental Africa operations produced 374,000oz at a total cash cost of
$790/oz in the fourth quarter of 2010, compared with 373,000oz at a total cash
cost of $725/oz the previous quarter. Geita`s production declined by 3% to
90,000oz mainly due to fewer tons of higher grade material processed compared
with the previous quarter, although this was partly offset by an increase in
overall tonnage throughput. Total cash costs increased by 6% to $749/oz.
Production from Iduapriem rose 2% to 58,000oz following improvements to plant
availability and utilisation, which offset lower grade. The 30% rise in cash
costs followed an increase in the 2010 electricity tariff which was effected in
the fourth quarter.
At Obuasi, the high level taskforce appointed in November, started work to
define the long-term turnaround strategy for the operation, which continued to
be challenged by poor blasting fragmentation and restricted ore passes, in
addition to an unplanned plant shutdown for maintenance on the tailings
facility. Production declined by 12% to 66,000oz and costs, also impacted by the
higher power price, rose 14% to $949/oz. In Guinea, Siguiri`s production rose by
15% to 71,000oz as conveyor belt modifications and consistent feed of dry ore
drove higher tonnage throughput. Total cash costs decreased by 2% to $687/oz.
Mali continued to deliver strong operational free cashflow to the business.
Production from Morila rose 4% to 24,000oz at an improved total cash cost of
$760/oz. At Yatela, output fell 10% to 9,000oz due to the lower grade ore
stacked during previous periods. Lower recovered grade at Sadiola led to a 3%
drop in production to 29,000oz. Costs increased by 26% to $783/oz as new sources
of ore were accessed. In Namibia, Navachab`s production jumped by 22% to
28,000oz as higher-grade ore was mined from the base of the pit, along with
higher overall tonnages and improved performance from the operations at the
bottom of the main pit and the benefits of the dense-media-separator (DMS
plant).
The Americas operations produced 196,000oz at a total cash cost of $465/oz in
the fourth quarter of 2010, compared with 218,000oz at a total cash cost of
$433/oz the previous quarter. Cerro Vanguardia, in Argentina, delivered yet
another strong operating quarter with a 4% rise in production to 50,000oz due to
an increase in tonnages mined. Silver credits and the weaker peso helped offset
higher fuel consumption and accelerating inflation in Argentina with total cash
costs dropping 5% to $357/oz. At Cripple Creek & Victor in the United States,
production fell by 25% as planned, to 42,000oz due to stacking ore on higher
sections of the pad. Cash cost rose 13% to $558/oz. At AngloGold Ashanti Brasil
Mineracao, production was 9% lower at 85,000oz due to lower grades and a drop in
tonnages caused by the performance of the Cuiaba fleet and geomechanical
problems which affected the Queiroz plant. The 11% increase in cash costs to
$460/oz reflects the stronger real as well as higher maintenance costs and lower
by-product credits. Serra Grande`s production was 5% lower at 19,000oz
reflecting lower grades as expected, while costs climbed 9%.
Australasia produced 102,000oz at a total cash cost of $894/oz in the fourth
quarter of 2010, compared with 93,000oz at a total cash cost of $1,064/oz the
previous quarter. Sunrise Dam, the only operating mine in the region, delivered
a significant increase in both ore tonnage and grades from the underground
section of the operation. The economies of scale achieved helped drive down unit
costs. Total cash costs improved 16% from the previous quarter which included a
lower non-cash deferred stripping charge of $160/oz.
PROJECTS
AngloGold Ashanti incurred capital expenditure of $365m during the quarter, of
which $95m was spent on growth projects. Of the growth-related capital, $54m was
spent in the Americas, $14m was spent in Continental Africa, $3m in Australasia
and $23m in South Africa.
Detailed engineering work for the refurbishment of the Sao Bento plant, at the
Corrego do Sitio project in Brazil`s Minas Gerais state, remains on schedule.
Manufacturing of the autoclave was also completed on schedule and the unit was
delivered in January 2011. Mine stopes and underground infrastructure were
completed on time in preparation for the beginning of ramp-up activities in
December. The Lamego mine reached full production at the end of the fourth
quarter as planned, with completion of the main surface facilities expected at
the end of April 2011. Of the 11,884m drilled at AngloGold Ashanti Corrego do
Sitio Mineracao, the majority was at Corrego do Sitio II.
In the Democratic Republic of Congo, significant progress was made on the Kibali
joint venture, operated by AngloGold Ashanti`s joint venture partner Randgold
Resources. The project team has largely been assembled, with the appointments of
the project manager, construction manager, cost engineer and financial
controller. Good progress has been made on determining the hydropower strategy,
with environmental impact assessments now underway, while procurement of items
necessary for site establishment started ahead of schedule. Road infrastructure
critical to development of the project, was completed, including a network of
28km in the site and surrounding communities and the 179km stretch between the
towns of Aru and Doko, a key staging point for Kibali`s construction. The
commute between these communities, which in the past could take several days
during the rainy season, has been cut to three hours.
Work continued on completion of a feasibility study on the Mongbwalu project,
which is due for submission to the boards of AngloGold Ashanti and Okimo, the
DRC`s state-owned gold company and the 13.78% partner on the project, during the
first quarter of 2011.
In Australia, the bankable feasibility study for the Tropicana project was
completed, presented to the joint venture partners AngloGold Ashanti (70%) and
Independence Group NL (30%), and approved by their boards in November, paving
the way for the project`s development. Primary state and federal environmental
approvals were received during the quarter. AngloGold Ashanti plans to announce
appointment of the EPCM and open-pit mining contract during the first quarter of
2011. Detailed design of the plant and infrastructure construction will commence
in 2011, with construction of the 220km site access road the first major
contract. Exploration of the Havana Deeps and Boston Shaker areas continued with
a feasibility study of open pit mining at Boston Shaker approved during the
quarter. A decision on advancing Havana Deeps to pre-feasibility stage is also
expected in the March 2011 quarter.
EXPLORATION
Total exploration expenditure during the fourth quarter, inclusive of
expenditure at equity accounted joint ventures, was $65m ($23m on brownfield,
$26m on greenfield and $16m on pre-feasibility studies), compared with $72m the
previous quarter ($28m on brownfield, $19m on greenfield and $25m on pre-
feasibility studies). The following are highlights from the company`s
exploration activities during the quarter. More detail on AngloGold Ashanti`s
exploration programme can be found at www.anglogoldashanti.com.
During the quarter 58,823m of greenfield exploration drilling was completed at
existing priority sites and used to delineate new targets in Australia, Canada,
Guinea, Gabon, Colombia and the Solomon Islands. This compares with 98,000m the
previous quarter.
In Australia, exploration in the Tropicana joint venture (JV) during the quarter
focused on reverse circulation and diamond drill testing of targets adjacent to
the project resource. The Boston Shaker resource lies 360m north of the
Tropicana open pit resource and has been tested to a maximum vertical depth of
230m. A full feasibility study on Boston Shaker started in September 2010, with
exploration drilling suggesting potential for expansion of the open pit resource
determined in the scoping study. Significant results included: 8.0m @ 8.08 g/t
Au from 242m, 6m @ 6.54 g/t Au from 82m, 13m @ 3.66 g/t Au from 33m, 11m @ 3.34
g/t Au from 48m and 16m @ 4.88 g/t Au from 397m. An underground
scoping study on Havana Deeps was completed in October 2010 and indicates
potential viability of underground mining outside the Havana open pit resource.
Drill holes targeting Havana Deeps returned further significant results,
including: 9m @ 11.7 g/t Au from 462m, 11m @ 11.2 g/t Au from 416m and 10m @
14.5 g/t Au from 374m.
At the Saxby JV with Falcon Minerals in northwest Queensland, geochemical
results were returned for all samples from the 4,000m programme of five pre-
collared diamond drill holes completed in mid-2010. A high-grade gold
intersection of 15m @ 9.09 g/t Au from 701m was returned and further check
assays are pending.
In the Solomon Islands, exploration activities continued at the Kele and Mase
JVs with XDM Resources. At Kele, about 1,515m of diamond drilling was completed
in the quarter, along with mechanical trenching and geochemical sampling
focussed on the Babatia and Vulu prospects. Best results from the drilling at
Kele included 15.5m @ 7.89 g/t Au and 30.2m @ 2.74 g/t Au from argillic
alteration zones. Best results from trenching include 25m @ 3.1g/t Au and 9m @
2.99 g/t Au. At Mase, about 985m of diamond drilling was completed.
In the Americas, drilling was undertaken at four regions in Colombia.
Exploration continued at the La Colosa project in Colombia, where three rigs are
now in operation, while 3,477m was drilled at the Gramalote deposit. Additional
sampling and mapping was conducted at the Quebradona property, while an
extensive ground IP survey was completed at Loma Esperanza anomaly. Encouraging
results from infill soil sampling were received from the Falcao JV with
Horizonte Minerals in Brazil`s southern Para state. In Argentina, a scout RC
drill programme at the La Volcan prospect for a total of 1,794m in 12 holes.
Assay results included some narrow mineralised quartz zones with up to 3 g/t Au
and 40 g/t Au. Deeper diamond drilling is warranted to test anticipated higher
Au grade horizons of the mineralised system.
In Continental Africa, regional exploration in the DRC continued on the
5,487kmSquared Kilo project, owned by Ashanti Goldfields Kilo (AGK), in which
AngloGold Ashanti has a 86.22% stake and Okimo 13.78%. Regional exploration
initiatives, including a 5,000m diamond drilling programme over key targets,
commenced to test mineralisation in and around intrusive bodies at the Mount Tsi
prospect. The first phase of a regional reconnaissance sampling and mapping
programme was completed and several regional scale anomalies identified.
Trenching, detailed mapping and sampling of these anomalies is ongoing in the
northern and central areas, with encouraging results. At the Kibali joint
venture, 5,705m of mineral-resource conversion drilling targeted planned
underground infrastructure. One hole aimed to upgrade KCD down-plunge mineral
resource from inferred to the indicated category, proved successful. Regional
exploration work on Blocks 2, 3 and 4 around the Siguiri mine in Guinea is
ongoing.
At the Saraya South extension and Foulata East targets in Block 2, a further
1,658m was drilled with a best intercept of 32m @ 5.27 g/t Au, from 4m in the
oxides. In Block 3, soil geochemistry confirms consistent anomalism along the
sediment-amphibolite contact extending a further 1.6km southward, resulting in
an anomaly with a strike length of about 6.8km, still open towards the south; a
programme to test these anomalies in underway. At Obuasi in Ghana, the
brownfield team completed 1,074m of drilling, with four new reef intersections
obtained.
In the Middle East & North Africa, where AngloGold Ashanti has a joint venture
with Thani Investments, exploration work included Phase II sampling and mapping
at the Wadi Kareem and Hodine concessions in Egypt. At Hodine, diamond drilling
commenced at the Hutite prospect, to follow-up on the encouraging results from
traverse rock chip sampling of 33m @ 4.37 g/t Au, including 7.5m @ 8.85 g/t
Au. In Eritrea, a 10,000 line km airborne electromagnetic, magnetic and
radiometric survey commenced at the Kerkasha and Akordat North exploration
licences and will be completed in the first quarter of 2011. Thani Ashanti
entered into a binding Heads of Terms with Stratex International to explore for
epithermal gold deposits in the Afar region of Ethiopia and in Djibouti.
ANNUAL REVIEW
Adjusted headline earnings, normalised to exclude the $2.5bn post taxation cost
of restructuring the hedge book during the year, was $787m. The company reported
an adjusted headline loss of $1,758m, when taking the restructuring cost into
account. A final dividend of 80 South African cents per share (approximately 11
US cents per share), declared, resulting in a total dividend of 145 South
African cents per share (approximately 20 US cents per share) for the 2010 year.
This represents an 11.5% increase from the total dividend paid in 2009.
Production in 2010 declined 2% to 4.52Moz, within the range forecast by the
company at the beginning of 2010, while total cash costs rose 24% to $638/oz, in
line with exchange-rate adjusted guidance. Significant improvements were made at
the South African operations, which experienced fewer safety-related stoppages;
at Geita, where improvements related to Project ONE continued to show results;
and at Cripple Creek & Victor, where the revised pad-stacking strategy yielded
the desired outcome. The sale of Tau Lekoa, seismic impact at Savuka, the ten
week shut down at Iduapriem and ongoing operational challenges at Obuasi
contributed to the lower production. A multi-disciplinary taskforce has been
established to design and execute the turnaround strategy for Obuasi. Uranium
production reached 1.46Mlbs in 2010, compared with 1.44Mlbs the previous year,
as grades and recoveries improved.
AngloGold Ashanti also saw the acceleration of `mining inflation` impact prices
of skilled and unskilled labour, contractors, heavy equipment and consumables in
several of its operating regions as rising metal prices spurred activity in the
global resources sector. The impact on dollar-denominated costs was magnified by
significant strengthening of the Brazilian real, the South African rand and the
Australian dollar.
Project ONE, AngloGold Ashanti`s new operating model central to the achievement
of long-term productivity, safety, environmental and financial targets, was
implemented at 15 operations. To date, the business improvement initiatives
introduced since the articulation of AngloGold Ashanti`s new strategy in April
2008, has improved operational cashflow by around $500m.
Tragically, there were 15 fatalities across the company`s 21 mines during the
year, with 10 occurring at the South African operations. Eliminating injuries
from the workplace remains AngloGold Ashanti`s most important objective and the
particular focus is being placed on the Safety Transformation component of
Project ONE to achieve this goal.
The overall quality and tenor of the balance sheet was greatly improved during
the year with the award of investment grade ratings by Standard & Poor`s and
Moody`s Investor Services, which paved the way for the successful issue in April
of a $700m, 10-year bond and a $300m, 30-year bond. A dual tranche capital
raising for net proceeds of $1.53bn - comprising roughly equal parts of equity
and a three-year mandatory convertible note - were concluded in September. This
created the platform for the elimination of the final 3.2Moz hedge on 7 October.
This fulfilled a long-standing strategic objective of the company, to reduce
financial risk and improve cashflow generation ability by increasing overall
exposure to the gold price. The balance sheet ended stronger with a net debt
level (excluding the mandatory convertible bond) of $1.3bn at year end.
The company estimated in September that it would grow production from its
current operating and exploration portfolio to between 5.4Moz and 5.6Moz over
five years and estimated expansion capital of $2.4bn to be invested over the
next three years. The board approved the Sao Bento and Tropicana projects during
the course of the year and feasibility studies progressed on the Kibali and
Mongbwalu projects. In Colombia, drilling resumed on the La Colosa deposit after
a two-year hiatus and started on the Gramalote joint venture. Both assets are
undergoing feasibility studies. Greenfield exploration accelerated dramatically
from 2009, with encouraging results from Colombia, Australia, the Solomon
Islands, Egypt, Gabon and Canada`s Baffin Island region.
Reserves (which were calculated at a gold price of US$850/oz) improved by 0.6Moz
to end the year at 71.2Moz*, after accounting for depletion. Resources were
largely unchanged after depletion, at 220Moz*. *Restated for the sale of Tau
Lekoa.
OUTLOOK
AngloGold Ashanti`s production and total cash cost guidance for the full year
2011 is expected to be 4.55Moz - 4.75Moz at a total cash cost of $660/oz to
$685/oz. This assumes an average exchange rate of R7.11/$, BRL1.70/$, A$/$0.98
and Argentinean peso 4.12/$ and an oil price of $95/barrel.
First quarter production and total cash cost guidance is expected to be 1.04Moz
at a total cash cost of between $675/oz and $700/oz. This assumes an average
exchange rate of R7.00/$, BRL1.70/$, A$/$1.00 and Argentinean peso 4.03/$ and an
oil price of $95/barrel.
Review of the Gold Market
Gold price movement and investment markets
Gold price data
During the fourth quarter, gold hit new highs in both US dollar and Euro terms,
reaching $1,431/oz and 1,075/oz. The gold price averaged $1,370/oz over the
period, 12% more than the preceding quarter. Although the announcement of the
much anticipated second round of quantitative easing by the Federal Reserve
helped propel bullion back above $1,400/oz level in early November, it was the
return of Sovereign risk in the Euro zone that saw gold largely maintain that
level over the balance of the quarter after Ireland became the second EU member
to accept a bailout from the European Financial Stability Fund.
Investment demand
Despite heightened Sovereign Risk in the fourth quarter, exchange traded funds
(ETF) did not reflect the same levels of growth exhibited in the second quarter
when this uncertainty first presented itself. ETF holdings remained relatively
stagnant during the quarter at 2,100 tonnes or 68Moz. On the COMEX, the largest
position for the quarter was reported at 32.6Mozs long, some 1.1Mozs less than
the largest ever long position reported. In China, retail bar investment
increased by approximately 45% and local gold supply was once again insufficient
to meet demand. As a result of this deficit, gold sold at a premium of RMB
5/gram over the international gold price. The fourth quarter saw the Middle East
investment markets receiving a welcome boost with bar and coin sales rising in
the United Arab Emirates, Turkey and the Kingdom of Saudi Arabia.
Official sector
The second year of the current Central Bank Accord, which commenced at the end
of September 2009, has seen sales totalling 54 tonnes in the period up to
December 2010. This is comprised almost entirely of sales from the IMF, which
has subsequently concluded its sale of 403 tonnes, with a little more than half
sold to Official Sector participants.
Jewellery sales
The fourth quarter saw the Indian gold market, still the world`s largest,
growing by more than 20%. It appears 2009`s poor showing has been shrugged off.
The Rupee price for a gram of gold exceeded INR2,100 for the first time ever
during the quarter and encouragingly, this new peak did not prompt a rise in
gold recycling. Dollar weakness and Rupee strength were once again the hallmark
of the quarter, which did not deter Indian buyers. Similarly, in China, the
jewellery market grew by over 8%. Consumers still favour pure gold jewellery as
an investment to safeguard from economic uncertainty and rising inflation. The
18 carat jewellery market did not fare as well due largely to its inferior
investment status and showed a small decline from the previous quarter. In the
United Arab Emirates, a strong quarter for tourism contributed to good sales of
22 carat jewellery, while Turkish exports rose marginally over the fourth
quarter, with shipments primarily to the U.S. and Russia. The Kingdom of Saudi
Arabia experienced a weaker fourth quarter with demand down by some 10% on the
previous quarter.
Mineral Resource and Ore Reserve
Mineral Resource and Ore Reserve are reported in accordance with the minimum
standards described by the Australasian Code for Reporting of Exploration
Results, Mineral Resource and Ore Reserve (JORC Code, 2004 Edition), and also
conform to the standards set out in the South African Code for the Reporting of
Exploration Results, Mineral Resource and Mineral Reserve (The SAMREC Code, 2007
edition). Mineral Resource is inclusive of the Ore Reserve component unless
otherwise stated.
Mineral Resource
When the 2009 Mineral Resource is restated to exclude the sale of Tau Lekoa
(6.2Moz), the Mineral Resource is reduced from 226.7Moz to 220.5Moz. The total
Mineral Resource remained steady, dropping slightly from 220.5Moz in 2009 to
220.0Moz in December 2010. A year-on-year increase of 5.8Moz occurred before the
subtraction of depletion and a decrease of 0.5Moz after the subtraction of
depletion. It should be noted that changes in economic assumptions from 2009 to
2010 resulted in the Mineral Resource increasing by 3.5Moz whilst exploration
and modelling resulted in an increase of 0.7Moz. The remaining increase of
1.6Moz resulted from various other factors. Depletions from the Mineral Resource
for 2009 totalled 6.3Moz.
MINERAL RESOURCE Moz
Mineral Resource as at 31 December 2009 226.7
Sale of Tau Lekoa (6.2)
Restated 2009 Mineral Resource 220.5
Reductions
Great Noligwa Due to economics and depletion (2.4)
TauTona Transfers to Mponeng so as to improve
change of mining (1.3)
Siguiri Revision to modelling procedures and
increased costs (1.0)
Other Total of non-significant changes (3.6)
Additions
Vaal River Surface An economic study demonstrated that these
tailings can be economically reworked to
recover uranium 3.0
West Wits Surface 1.3
Other Total of non-significant changes 3.5
Mineral Resource as at 31 December 2010 220.0
Rounding of numbers may result in computational discrepancies.
Mineral resource has been calculated at a gold price of US$1,100/oz (2009:
US$1,025/oz).
ORE RESERVE
When the 2009 Ore Reserve is restated to exclude Tau Lekoa (0.8Moz), the 2009
Ore Reserve is reduced from 71.4Moz to 70.6Moz. Using the restated figure, the
AngloGold Ashanti Ore Reserve increased from 70.6Moz in 2009 to 71.2Moz in
December 2010. A year-on-year increase of 6.2Moz occurred before the subtraction
of 5.6Moz for depletion, resulting in an increase of 0.6Moz after the
subtraction of depletion. It should be noted that changes in the economic
assumptions from 2009 to 2010 resulted in the Ore Reserve increasing by 2.4Moz
while exploration and modelling resulted in a further increase of 3.8Moz.
ORE RESERVE Moz
Ore Reserve as at 31 December 2009 71.4
Sale of Tau Lekoa (0.8)
Restated 2009 Ore Reserve 70.6
Reductions
Geita Depletions and model changes (0.9)
Obuasi Depletions and refinements to Ore Reserve
estimation (0.7)
Siguiri Remodelling in accordance with reconciliation
and depletion (0.7)
TauTona Depletion and transfers to Mponeng, minor
model changes (0.7)
Other Total non-significant changes (1.2)
Additions
Cripple Creek & Victor MLE2 project study incorporated 1.4
Mponeng Transfers from TauTona countered some model
losses 1.2
Sadiola Additions from the Deep Suphide project 0.8
Other Total non-significant changes 1.3
Ore Reserve as at 31 December 2010 71.2
Rounding of numbers may result in computational discrepancies.
(1) Some of the Ore Reserves previously reflected against TauTona have now been
transferred to Mponeng to facilitate the mining plan.
Ore reserve has been calculated using a gold price of US$850/oz (2009:
US$800/oz).
BY-PRODUCTS
Several by-products are recovered as a result of the processing of gold Ore
Reserve. These include 21,591t of uranium oxide from the South African
operations, 443,761t of sulphur from Brazil and 34.6Moz of silver from
Argentina. Details of by-product Mineral Resource and Ore Reserve are given in
the Mineral Resource and Ore Reserve Report 2010(1).
EXTERNAL AUDIT OF MINERAL RESOURCE
During the course of the year and as part of the rolling audit programme,
AngloGold Ashanti`s 2010 Mineral Resource at the following operations were
submitted for external audit by the Australian-based company Quantitative Group
(QG):
Vaal Reef at Great Noligwa, Kopanang and Moab Khotsong mines
Cerro Vanguardia
Serra Grande
Cripple Creek and Victor
Mongbwalu
AngloGold Ashanti`s 2010 Ore Reserve at the following operations were submitted
for external audit by a number of international consulting companies, namely:
Geita AMC
Obuasi AMC
Siguiri AMC
Sunrise Dam: underground Optiro
Cripple Creek and Victor Pincock Allen and Holt
Cerro Vanguardia Xstract
Serra Grande Xstract
Brasil Mineracao - Cuiaba Xstract
The company has been informed that the audits identified no material
shortcomings in the process by which AngloGold Ashanti`s Mineral Resource and
Ore Reserve were evaluated. It is the company`s intention to continue this
process so that each of its operations will be audited, on average, every three
years.
COMPETENT PERSONS
The information in this report relating to exploration results, Mineral Resource
and Ore Reserve is based on information compiled by the Competent Persons. These
individuals are identified in the expanded Mineral Resource and Ore Reserve
Report 2010(1). The Competent Persons consent to the inclusion of Exploration
Results, Mineral Resource and Ore Reserve information in this report, in the
form and context in which it appears.
During the past decade, the company has developed and implemented a rigorous
system of internal and external reviews of Exploration Results, Mineral Resource
or Ore Reserve. A documented chain of responsibility exists from the Competent
Persons at the operations to the company`s Mineral Resource and Ore Reserve
Steering Committee. Accordingly, the Chairman of the Mineral Resource and Ore
Reserve Steering Committee, VA Chamberlain, MSc (Mining Engineering), BSc (Hons)
(Geology), MGSSA, MAusIMM, assumes responsibility for the Mineral Resource and
Ore Reserve processes for AngloGold Ashanti and is satisfied that the Competent
Persons have fulfilled their responsibilities.
(1) A detailed breakdown of Mineral Resource and Ore Reserve is provided in the
Mineral Resource and Ore Reserve Report 2010, which will be available on or
about 31 March 2011 on the AngloGold Ashanti website
(www.anglogoldashanti.com), from where it may be downloaded as a PDF file using
Adobe Acrobat Reader. The report will also be available in printed format on
request from the AngloGold Ashanti offices at the addresses given at the back of
the Annual Financial Statements.
MINERAL RESOURCE BY COUNTRY (ATTRIBUTABLE) INCLUSIVE OF ORE RESERVE
Contained Contained
Category Tonnes Grade gold gold
million g/t tonnes Moz
as at 31 December
2010
South Africa Measured 26.51 15.30 405.52 13.04
Indicated 753.04 2.76 2,075.87 66.74
Inferred 40.82 13.81 563.55 18.12
Total 820.38 3.71 3,044.94 97.90
Democratic
Republic of the
Congo Measured 0.00 - 0.00 0.00
Indicated 59.67 3.64 217.41 6.99
Inferred 30.54 3.27 99.94 3.21
Total 90.21 3.52 317.35 10.20
Ghana Measured 77.12 4.83 372.49 11.98
Indicated 83.38 3.82 318.84 10.25
Inferred 105.26 3.71 390.99 12.57
Total 265.76 4.07 1,082.33 34.80
Guinea Measured 43.18 0.65 28.28 0.91
Indicated 101.78 0.77 78.19 2.51
Inferred 77.77 0.85 66.11 2.13
Total 222.73 0.77 172.58 5.55
Mali Measured 15.52 1.36 21.17 0.68
Indicated 54.86 1.79 98.07 3.15
Inferred 19.87 1.66 32.98 1.06
Total 90.24 1.69 152.22 4.89
Namibia Measured 23.30 0.86 20.09 0.65
Indicated 72.57 1.28 92.78 2.98
Inferred 23.33 1.13 26.41 0.85
Total 119.20 1.17 139.28 4.48
Tanzania Measured 0.00 - 0.00 0.00
Indicated 80.32 3.37 270.88 8.71
Inferred 21.95 3.62 79.57 2.56
Total 102.27 3.43 350.46 11.27
Australia Measured 34.88 1.74 60.55 1.95
Indicated 35.49 2.85 101.12 3.25
Inferred 19.84 2.90 57.63 1.85
Total 90.21 2.43 219.30 7.05
Argentina Measured 11.12 1.50 16.63 0.53
Indicated 20.86 3.82 79.69 2.56
Inferred 10.20 3.19 32.55 1.05
Total 42.18 3.06 128.87 4.14
Brazil Measured 11.18 6.39 71.43 2.30
Indicated 15.60 6.10 95.14 3.06
Inferred 30.80 6.81 209.73 6.74
Total 57.57 6.54 376.31 12.10
Colombia Measured 0.00 - 0.00 0.00
Indicated 15.78 0.93 14.75 0.47
Inferred 414.06 0.98 406.06 13.06
Total 429.85 0.98 420.81 13.53
United States of
America Measured 283.04 0.78 221.76 7.13
Indicated 216.53 0.73 157.18 5.05
Inferred 79.61 0.75 59.66 1.92
Total 579.18 0.76 438.60 14.10
Total Measured 525.84 2.32 1,217.92 39.16
Indicated 1,509.88 2.38 3,599.94 115.74
Inferred 874.07 2.32 2,025.18 65.11
Total 2,909.79 2.35 6,843.04 220.01
Rounding of figures may result in computational discrepancies.
MINERAL RESOURCE BY COUNTRY (ATTRIBUTABLE) EXCLUSIVE OF ORE RESERVE
Contained Contained
Category Tonnes Grade gold gold
million g/t tonnes Moz
as at 31 December
2010
South Africa Measured 15.29 17.73 271.14 8.72
Indicated 563.41 1.65 927.58 29.82
Inferred 19.64 18.69 367.04 11.80
Total 598.34 2.62 1,565.75 50.34
Democratic
Republic of the
Congo Measured 0.00 - 0.00 0.00
Indicated 26.23 2.93 76.72 2.47
Inferred 30.54 3.27 99.94 3.21
Total 56.77 3.11 176.66 5.68
Ghana Measured 29.69 6.96 206.52 6.64
Indicated 34.46 2.45 84.26 2.71
Inferred 105.26 3.71 391.01 12.57
Total 169.41 4.02 681.79 21.92
Guinea Measured 4.46 0.80 3.59 0.12
Indicated 34.07 0.77 26.22 0.84
Inferred 77.77 0.85 66.11 2.13
Total 116.30 0.82 95.91 3.08
Mali Measured 4.69 0.75 3.50 0.11
Indicated 18.27 1.69 30.79 0.99
Inferred 19.09 1.70 32.37 1.04
Total 42.05 1.59 66.66 2.14
Namibia Measured 9.03 0.58 5.24 0.17
Indicated 42.83 1.11 47.50 1.53
Inferred 23.33 1.13 26.41 0.85
Total 75.20 1.05 79.15 2.54
Tanzania Measured 0.00 - 0.00 0.00
Indicated 41.62 2.93 121.83 3.92
Inferred 21.95 3.62 79.57 2.56
Total 63.57 3.17 201.40 6.48
Australia Measured 10.83 0.93 10.10 0.32
Indicated 12.10 2.92 35.29 1.13
Inferred 19.84 2.90 57.63 1.85
Total 42.77 2.41 103.02 3.31
Argentina Measured 1.36 3.61 4.91 0.16
Indicated 16.70 2.20 36.72 1.18
Inferred 9.95 2.97 29.56 0.95
Total 28.01 2.54 71.18 2.29
Brazil Measured 6.37 6.15 39.19 1.26
Indicated 8.35 6.10 50.93 1.64
Inferred 28.08 6.78 190.31 6.12
Total 42.81 6.55 280.44 9.02
Colombia Measured 0.00 - 0.00 0.00
Indicated 15.78 0.93 14.75 0.47
Inferred 414.06 0.98 406.06 13.06
Total 429.85 0.98 420.81 13.53
United States of
America Measured 135.85 0.75 102.38 3.29
Indicated 137.77 0.71 98.42 3.16
Inferred 69.52 0.77 53.85 1.73
Total 343.14 0.74 254.66 8.19
Total Measured 217.57 2.97 646.57 20.79
Indicated 951.59 1.63 1,551.01 49.87
Inferred 839.05 2.15 1,799.86 57.87
Total 2,008.21 1.99 3,997.44 128.52
Rounding of figures may result in computational discrepancies.
ORE RESERVE BY COUNTRY (ATTRIBUTABLE)
Contained Contained
Category Tonnes Grade gold gold
million g/t tonnes Moz
as at 31 December
2010
South Africa Proved 12.03 8.24 99.07 3.19
Probable 191.99 4.41 845.74 27.19
Total 204.02 4.63 944.81 30.38
Democratic Republic
of the Congo Proved - - - -
Probable 33.44 4.21 140.69 4.52
Total 33.44 4.21 140.69 4.52
Ghana Proved 44.01 3.13 137.85 4.43
Probable 49.30 4.41 217.28 6.99
Total 93.31 3.81 355.13 11.42
Guinea Proved 39.05 0.62 24.38 0.78
Probable 67.44 0.74 49.71 1.60
Total 160.49 0.70 74.08 2.38
Mali Proved 4.96 2.23 11.03 0.35
Probable 39.18 1.78 69.82 2.24
Total 44.14 1.83 80.86 2.60
Namibia Proved 14.27 1.02 14.49 0.47
Probable 29.74 1.45 42.99 1.38
Total 44.01 1.31 57.48 1.85
Tanzania Proved - - - -
Probable 40.92 3.20 131.06 4.21
Total 40.92 3.20 131.06 4.21
Australia Proved 24.05 2.10 50.45 1.62
Probable 23.39 2.81 65.83 2.12
Total 47.44 2.45 116.28 3.74
Argentina Proved 9.54 1.22 11.63 0.37
Probable 8.57 5.32 45.62 1.47
Total 18.10 3.16 57.25 1.84
Brazil Proved 6.91 5.80 40.06 1.29
Probable 7.40 5.26 38.88 1.25
Total 14.30 5.52 78.94 2.54
United States of
America Proved 147.19 0.81 119.37 3.84
Probable 78.76 0.75 58.76 1.89
Total 225.95 0.79 178.13 5.73
Total Proved 302.00 1.68 508.32 16.34
Probable 570.12 2.99 1,706.39 54.86
Total 872.12 2.54 2,214.71 71.20
Rounding of figures may result in computational discrepancies.
Group income statement
Quarter Quarter
ended ended
December September
2010 2010
SA Rand million Notes Unaudited Unaudited
Revenue 2 11,095 10,668
Gold income 10,614 10,372
Cost of sales 3 (7,016) (6,659)
Loss on non-hedge derivatives and other
commodity contracts 4 (529) (1,041)
Gross profit (loss) 3,069 2,672
Corporate administration and other expenses (488) (350)
Market development costs (30) (26)
Exploration costs (338) (440)
Other operating (expenses) income 5 (27) (50)
Special items 6 (208) (424)
Operating profit (loss) 1,978 1,382
Interest received 119 58
Exchange gain (loss) 93 (113)
Fair value adjustment on option component of
convertible bonds (280) (166)
Finance costs and unwinding of obligations 7 (357) (285)
Fair value loss on mandatory convertible bonds (222) (160)
Share of equity accounted investments` profit 63 151
Profit (loss) before taxation 1,394 867
Taxation 8 (878) (318)
Profit (loss) for the period 516 549
Allocated as follows:
Equity shareholders 404 443
Non-controlling interests 112 106
516 549
Basic profit (loss) per ordinary share (cents) 1 105 120
Diluted profit (loss) per ordinary share (cents) 2 105 120
Quarter Year Year
ended ended ended
December December December
2009 2010 2009
SA Rand million Unaudited Unaudited Audited
Revenue 9,514 40,135 31,961
Gold income 9,234 38,833 30,745
Cost of sales (6,219) (25,833) (23,220)
Loss on non-hedge derivatives and other
commodity contracts (2,706) (5,136) (11,934)
Gross profit (loss) 309 7,864 (4,409)
Corporate administration and other
expenses (359) (1,491) (1,275)
Market development costs (10) (98) (87)
Exploration costs (442) (1,446) (1,217)
Other operating (expenses) income 58 (149) (80)
Special items 4,761 (894) 5,209
Operating profit (loss) 4,317 3,786 (1,859)
Interest received 133 311 444
Exchange gain (loss) 527 18 852
Fair value adjustment on option component
of convertible bonds (66) 39 (249)
Finance costs and unwinding of obligations (268) (1,203) (1,146)
Fair value loss on mandatory convertible bonds - (382) -
Share of equity accounted investments` profit 227 467 785
Profit (loss) before taxation 4,870 3,036 (1,173)
Taxation (1,522) (2,018) (1,172)
Profit (loss) for the period 3,348 1,018 (2,345)
Allocated as follows:
Equity shareholders 3,179 637 (2,762)
Non-controlling interests 169 381 417
3,348 1,018 (2,345)
Basic profit (loss) per ordinary share
(cents) 1 867 171 (765)
Diluted profit (loss) per ordinary share
(cents) 2 865 171 (765)
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
December September
2010 2010
US Dollar million Notes Unaudited Unaudited
Revenue 2 1,613 1,461
Gold income 1,543 1,420
Cost of sales 3 (1,021) (911)
Loss on non-hedge derivatives and other
commodity contracts 4 (77) (152)
Gross profit (loss) 445 357
Corporate administration and other expenses (71) (48)
Market development costs (5) (4)
Exploration costs (49) (60)
Other operating (expenses) income 5 (4) (7)
Special items 6 (31) (60)
Operating profit (loss) 285 178
Interest received 17 8
Exchange gain (loss) 14 (16)
Fair value adjustment on option component of
convertible bonds (41) (24)
Finance costs and unwinding of obligations 7 (52) (39)
Fair value loss on mandatory convertible bonds (33) (22)
Share of equity accounted investments` profit 9 21
Profit (loss) before taxation 199 106
Taxation 8 (127) (41)
Profit (loss) for the period 72 65
Allocated as follows:
Equity shareholders 56 51
Non-controlling interests 16 14
72 65
Basic profit (loss) per ordinary share (cents) 1 15 14
Diluted profit (loss) per ordinary share (cents) 2 14 14
Quarter Year Year
ended ended ended
December December December
2009 2010 2009
US Dollar million Unaudited Unaudited Audited
Revenue 1,273 5,514 3,916
Gold income 1,236 5,334 3,768
Cost of sales (833) (3,550) (2,813)
Loss on non-hedge derivatives and other
commodity contracts (363) (702) (1,533)
Gross profit (loss) 40 1,082 (578)
Corporate administration and other
expenses (48) (206) (154)
Market development costs (1) (14) (10)
Exploration costs (59) (198) (150)
Other operating (expenses) income 8 (20) (8)
Special items 636 (126) 691
Operating profit (loss) 576 518 (209)
Interest received 18 43 54
Exchange gain (loss) 71 3 112
Fair value adjustment on option component
of convertible bonds (9) (1) (33)
Finance costs and unwinding of obligations (36) (166) (139)
Fair value loss on mandatory convertible bonds - (55) -
Share of equity accounted investments` profit 30 63 94
Profit (loss) before taxation 650 405 (121)
Taxation (204) (276) (147)
Profit (loss) for the period 446 129 (268)
Allocated as follows:
Equity shareholders 424 76 (320)
Non-controlling interests 22 53 52
446 129 (268)
Basic profit (loss) per ordinary share
(cents) 1 116 20 (89)
Diluted profit (loss) per ordinary share
(cents) 2 115 20 (89)
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
December September December
2010 2010 2009
SA Rand million Unaudited Unaudited Unaudited
Profit (loss) for the period 516 549 3,348
Exchange differences on translation of
foreign operations (759) (1,100) (618)
Share of equity accounted investments` other
comprehensive expense (income) 1 2 -
Net loss on cash flow hedges - - (140)
Net loss on cash flow hedges removed from
equity and reported in gold income - - 181
Hedge ineffectiveness on cash flow hedges - - 15
Realised gain (loss) on hedges of capital items 1 - 2
Deferred taxation thereon - (1) (13)
1 (1) 45
Net gain on available-for-sale financial
assets 298 43 346
Release on disposal of available-for-sale
financial assets (194) - -
Deferred taxation thereon - - (5)
104 43 341
Actuarial (loss) gain recognised (175) - 88
Deferred taxation thereon 47 - (28)
(128) - 60
Other comprehensive expense
for the period net of tax (781) (1,056) (172)
Total comprehensive (expense) income
for the period net of tax (265) (507) 3,176
Allocated as follows:
Equity shareholders (377) (613) 3,007
Non-controlling interests 112 106 169
(265) (507) 3,176
Year Year
ended ended
December December
2010 2009
SA Rand million Unaudited Audited
Profit (loss) for the period 1,018 (2,345)
Exchange differences on translation of foreign
operations (1,766) (2,645)
Share of equity accounted investments` other
comprehensive expense (income) (1) -
Net loss on cash flow hedges - (132)
Net loss on cash flow hedges removed from
equity and reported in gold income 279 1,155
Hedge ineffectiveness on cash flow hedges - 40
Realised gain (loss) on hedges of capital items 3 (12)
Deferred taxation thereon (99) (263)
183 788
Net gain on available-for-sale financial assets 440 482
Release on disposal of available-for-sale
financial assets (235) -
Deferred taxation thereon 13 (13)
218 469
Actuarial (loss) gain recognised (175) 88
Deferred taxation thereon 47 (28)
(128) 60
Other comprehensive expense
for the period net of tax (1,494) (1,328)
Total comprehensive (expense) income
for the period net of tax (476) (3,673)
Allocated as follows:
Equity shareholders (857) (4,099)
Non-controlling interests 381 426
(476) (3,673)
Rounding of figures may result in computational discrepancies.
Group statement of comprehensive income
Quarter Quarter Quarter
ended ended ended
December September December
2010 2010 2009
US Dollar million Unaudited Unaudited Unaudited
Profit (loss) for the period 72 65 446
Exchange differences on translation of
foreign operations 123 151 (45)
Share of equity accounted investments` other
comprehensive expenses - 1 -
Net loss on cash flow hedges - - (17)
Net loss on cash flow hedges removed from
equity and reported in gold income - - 26
Hedge ineffectiveness on
cash flow hedges - - 2
Realised gain (loss) on hedges of
capital items - - 1
Deferred taxation thereon - - (3)
- - 9
Net gain on available-for-sale financial
assets 41 5 41
Release on disposal of available-for-sale
financial assets (26) - -
Deferred taxation thereon - - (1)
15 5 40
Actuarial (loss) gain recognised (24) - 10
Deferred taxation thereon 6 - (3)
(18) - 7
Other comprehensive income
for the period net of tax 120 157 11
Total comprehensive income
for the period net of tax 192 222 457
Allocated as follows:
Equity shareholders 176 208 435
Non-controlling interests 16 14 22
192 222 457
Year Year
ended ended
December December
2010 2009
US Dollar million Unaudited Audited
Profit (loss) for the period 129 (268)
Exchange differences on translation of foreign operations 213 318
Share of equity accounted investments` other
comprehensive expenses - -
Net loss on cash flow hedges - (16)
Net loss on cash flow hedges removed from
equity and reported in gold income 38 138
Hedge ineffectiveness on
cash flow hedges - 5
Realised gain (loss) on hedges of capital items - (1)
Deferred taxation thereon (13) (35)
25 91
Net gain on available-for-sale financial assets 60 57
Release on disposal of available-for-sale
financial assets (32) -
Deferred taxation thereon 2 (2)
30 55
Actuarial (loss) gain recognised (24) 10
Deferred taxation thereon 6 (3)
(18) 7
Other comprehensive income
for the period net of tax 250 471
Total comprehensive income
for the period net of tax 379 203
Allocated as follows:
Equity shareholders 326 150
Non-controlling interests 53 53
379 203
Rounding of figures may result in computational discrepancies.
Group statement of financial position
As at As at As at
December September December
2010 2010 2009
SA Rand million Note Unaudited Unaudited Audited
ASSETS
Non-current assets
Tangible assets 40,600 41,489 43,263
Intangible assets 1,277 1,296 1,316
Investments in associates and
equity accounted joint ventures 4,087 4,329 4,758
Other investments 1,555 1,627 1,302
Inventories 2,268 2,268 2,508
Trade and other receivables 1,000 994 788
Derivatives 6 8 40
Deferred taxation 131 88 451
Cash restricted for use 214 214 394
Other non-current assets 59 92 63
51,197 52,405 54,883
Current assets
Inventories 5,848 5,860 5,102
Trade and other receivables 1,625 1,588 1,419
Derivatives - 453 2,450
Current portion of other
non-current assets 4 2 3
Cash restricted for use 69 84 87
Cash and cash equivalents 3,776 9,313 8,176
11,322 17,300 17,237
Non-current assets held for sale 110 114 650
11,432 17,414 17,887
TOTAL ASSETS 62,629 69,819 72,770
EQUITY AND LIABILITIES
Share capital and premium 11 45,678 45,598 39,834
Retained earnings and other
reserves (19,470) (19,159) (18,276)
Non-controlling interests 815 916 966
Total equity 27,023 27,355 22,524
Non-current liabilities
Borrowings 16,877 17,363 4,862
Environmental rehabilitation and
other provisions 3,873 3,332 3,351
Provision for pension and
post-retirement benefits 1,258 1,187 1,179
Trade, other payables and
deferred income 110 119 108
Derivatives 1,158 947 1,310
Deferred taxation 5,910 5,776 5,599
29,186 28,724 16,409
Current liabilities
Current portion of borrowings 886 1,864 9,493
Trade, other payables and
deferred income 4,630 4,061 4,332
Derivatives - 7,316 18,770
Taxation 882 499 1,186
6,398 13,740 33,781
Non-current liabilities held for sale 22 - 56
6,420 13,740 33,837
Total liabilities 35,606 42,464 50,246
TOTAL EQUITY AND LIABILITIES 62,629 69,819 72,770
Net asset value - cents per share 8,532 8,654 6,153
Rounding of figures may result in computational discrepancies.
Group statement of financial position
As at As at As at
December September December
2010 2010 2009
US Dollar million Note Unaudited Unaudited Audited
ASSETS
Non-current assets
Tangible assets 6,180 5,961 5,819
Intangible assets 194 186 177
Investments in associates and
equity accounted joint ventures 622 622 640
Other investments 237 234 175
Inventories 345 326 337
Trade and other receivables 152 143 106
Derivatives 1 1 5
Deferred taxation 20 13 61
Cash restricted for use 33 31 53
Other non-current assets 9 13 8
7,793 7,530 7,381
Current assets
Inventories 890 842 686
Trade and other receivables 247 228 191
Derivatives - 65 330
Current portion of other
non-current assets 1 - -
Cash restricted for use 10 12 12
Cash and cash equivalents 575 1,338 1,100
1,723 2,485 2,319
Non-current assets held for sale 16 17 87
1,739 2,502 2,406
TOTAL ASSETS 9,532 10,032 9,787
EQUITY AND LIABILITIES
Share capital and premium 11 6,627 6,615 5,805
Retained earnings and other
reserves (2,638) (2,817) (2,905)
Non-controlling interests 124 132 130
Total equity 4,113 3,930 3,030
Non-current liabilities
Borrowings 2,569 2,495 654
Environmental rehabilitation and
other provisions 589 479 451
Provision for pension and
post-retirement benefits 191 170 159
Trade, other payables and
deferred income 17 17 14
Derivatives 176 136 176
Deferred taxation 900 830 753
4,442 4,127 2,207
Current liabilities
Current portion of borrowings 135 268 1,277
Trade, other payables and
deferred income 705 584 582
Derivatives - 1,051 2,525
Taxation 134 72 159
974 1,975 4,543
Non-current liabilities held for sale 3 - 7
977 1,975 4,550
Total liabilities 5,419 6,102 6,757
TOTAL EQUITY AND LIABILITIES 9,532 10,032 9,787
Net asset value - cents per share 1,299 1,243 828
Rounding of figures may result in computational discrepancies.
Group statement of cash flows
Quarter Quarter Quarter
ended ended ended
December September December
2010 2010 2009
SA Rand million Unaudited Unaudited Unaudited
Cash flows from operating activities
Receipts from customers 10,955 10,566 9,596
Payments to suppliers and employees (5,944) (7,105) (5,889)
Cash generated from operations 5,011 3,461 3,707
Dividends received from equity accounted
investments 218 116 136
Taxation paid (153) (339) (233)
Cash utilised for hedge buy-back costs (7,312) (11,021) -
Net cash (outflow) inflow from operating
activities (2,236) (7,783) 3,610
Cash flows from investing activities
Capital expenditure (2,470) (1,771) (2,243)
Proceeds from disposal of tangible assets 12 468 1,814
Other investments acquired (152) (432) (229)
Acquisition of associates and equity
accounted joint ventures (100) (48) (2,638)
Proceeds on disposal of associate - - -
Loans advanced to associates and equity
accounted joint ventures - - (17)
Loans repaid from associates and equity
accounted joint ventures - - -
Proceeds from disposal of investments 578 280 196
Decrease (increase) in cash restricted for use 8 142 19
Interest received 59 57 129
Loans advanced (8) 4 -
Repayment of loans advanced 2 - 2
Net cash outflow from investing
activities (2,071) (1,300) (2,967)
Cash flows from financing activities
Proceeds from issue of share capital 31 5,596 39
Share issue expenses (31) (113) (39)
Proceeds from borrowings 1,880 7,139 162
Repayment of borrowings (2 400) (21) (57)
Finance costs paid (398) (46) (180)
Mandatory convertible bonds transaction
costs (30) (155) -
Dividends paid (139) (264) (43)
Net cash (outflow) inflow from financing
activities (1,087) 12,136 (118)
Net (decrease) increase in cash and cash
equivalents (5,394) 3,053 525
Translation (70) (347) (677)
Cash and cash equivalents at beginning
of period 9,313 6,607 8,328
Cash and cash equivalents at end of
period (1) 3,849 9,313 8,176
Cash generated from operations
Profit (loss) before taxation 1,394 867 4,870
Adjusted for:
Movement on non-hedge derivatives and
other commodity contracts 499 241 2,281
Amortisation of tangible assets 1,341 1,240 1,152
Finance costs and unwinding of obligations 357 285 268
Environmental, rehabilitation and other
expenditure 470 53 (70)
Special items 279 542 (4,708)
Amortisation of intangible assets 7 4 4
Deferred stripping 156 237 205
Fair value adjustment on option
component of convertible bonds 280 166 66
Fair value loss on mandatory convertible
bonds 222 160 -
Interest received (119) (58) (133)
Share of equity accounted investments`
profit (63) (151) (227)
Other non-cash movements 133 88 (675)
Movements in working capital 55 (213) 674
5,011 3,461 3,707
Movements in working capital
(Increase) decrease in inventories (101) 306 (183)
Decrease (increase) in trade and other
receivables (200) (80) 438
Increase (decrease) in trade and other
payables 356 (439) 419
55 (213) 674
Year Year
ended ended
December December
2010 2009
SA Rand million Unaudited Audited
Cash flows from operating activities
Receipts from customers 39,717 31,473
Payments to suppliers and employees (26,682) (20,896)
Cash generated from operations 13,035 10,577
Dividends received from equity accounted investments 939 751
Taxation paid (1,371) (1,232)
Cash utilised for hedge buy-back costs (18,333) (6,315)
Net cash (outflow) inflow from operating activities (5,730) 3,781
Cash flows from investing activities
Capital expenditure (7,108) (8,656)
Proceeds from disposal of tangible assets 500 9,029
Other investments acquired (832) (750)
Acquisition of associates and equity accounted joint
ventures (319) (2,646)
Proceeds on disposal of associate 4 -
Loans advanced to associates and equity accounted joint
ventures (22) (17)
Loans repaid from associates and equity accounted joint
ventures - 3
Proceeds from disposal of investments 1,039 680
Decrease (increase) in cash restricted for use 182 (91)
Interest received 232 445
Loans advanced (41) (1)
Repayment of loans advanced 3 4
Net cash outflow from investing activities (6,362) (2,000)
Cash flows from financing activities
Proceeds from issue of share capital 5,656 2,384
Share issue expenses (144) (84)
Proceeds from borrowings 16,666 24,901
Repayment of borrowings (12 326) (24 152)
Finance costs paid (821) (946)
Mandatory convertible bonds transaction costs (184) -
Dividends paid (846) (474)
Net cash (outflow) inflow from financing activities 8,001 1,629
Net (decrease) increase in cash and cash equivalents (4,091) 3,410
Translation (236) (672)
Cash and cash equivalents at beginning of period 8,176 5,438
Cash and cash equivalents at end of period (1) 3,849 8,176
Cash generated from operations
Profit (loss) before taxation 3,036 (1,173)
Adjusted for:
Movement on non-hedge derivatives and other commodity
contracts 2,946 14,417
Amortisation of tangible assets 5,022 4,615
Finance costs and unwinding of obligations 1,203 1,146
Environmental, rehabilitation and other expenditure 535 (47)
Special items 1,076 (5,148)
Amortisation of intangible assets 18 18
Deferred stripping 921 (467)
Fair value adjustment on option component of
convertible bonds (39) 249
Fair value loss on mandatory convertible bonds 382 -
Interest received (311) (444)
Share of equity accounted investments` profit (467) (785)
Other non-cash movements 250 (853)
Movements in working capital (1,537) (951)
13,035 10,577
Movements in working capital
(Increase) decrease in inventories (667) 634
Decrease (increase) in trade and other receivables (781) 106
Increase (decrease) in trade and other payables (89) (1,691)
(1,537) (951)
(1) The cash and cash equivalents balance at 31 December 2010 includes cash and
cash equivalents included on the statement of financial position as part of non-
current assets held for sale of R73m.
Rounding of figures may result in computational discrepancies.
Group statement of cash flows
Quarter Quarter Quarter
ended ended ended
December September December
2010 2010 2009
US Dollar million Unaudited Unaudited Unaudited
Cash flows from operating activities
Receipts from customers 1,589 1,441 1,283
Payments to suppliers and employees (925) (995) (805)
Cash generated from operations 664 446 478
Dividends received from equity accounted
investments 39 25 19
Taxation paid (24) (47) (32)
Cash utilised for hedge buy-back costs (1,061) (1,550) -
Net cash (outflow) inflow from operating
activities (382) (1,126) 465
Cash flows from investing activities
Capital expenditure (350) (242) (281)
Proceeds from disposal of tangible assets 2 64 242
Other investments acquired (23) (58) (29)
Acquisition of associates and equity
accounted joint ventures (15) (6) (353)
Proceeds on disposal of associate - - -
Loans advanced to associates and equity
accounted joint ventures - - (2)
Loans repaid from associates and equity
accounted joint ventures - - -
Proceeds from disposal of investments 80 38 25
Decrease (increase) in cash restricted
for use 2 19 2
Interest received 8 8 17
Loans advanced (1) - -
Repayment of loans advanced - - -
Net cash outflow from investing
activities (297) (177) (379)
Cash flows from financing activities
Proceeds from issue of share capital 4 790 5
Share issue expenses (4) (16) (5)
Proceeds from borrowings 276 1,011 29
Repayment of borrowings (324) (3) (22)
Finance costs paid (58) (8) (23)
Mandatory convertible bonds transaction costs (4) (22) -
Dividends paid (20) (37) (6)
Net cash (outflow) inflow from financing
activities (130) 1,715 (22)
Net (decrease) increase in cash and cash
equivalents (809) 412 64
Translation 57 60 (72)
Cash and cash equivalents at beginning
of period 1,338 866 1,108
Cash and cash equivalents at end of
period (1) 586 1,338 1,100
Cash generated from operations
Profit (loss) before taxation 199 106 650
Adjusted for:
Movement on non-hedge derivatives and
other commodity contracts 72 43 306
Amortisation of tangible assets 195 170 154
Finance costs and unwinding of
obligations 52 39 36
Environmental, rehabilitation and other
expenditure 69 8 (9)
Special items 42 76 (629)
Amortisation of intangible assets 1 - -
Deferred stripping 23 32 27
Fair value adjustment on option
component of convertible bonds 41 24 9
Fair value loss on mandatory convertible
bonds 33 22 -
Interest received (17) (8) (18)
Share of equity accounted investments`
profit (9) (21) (30)
Other non-cash movements 19 13 (90)
Movements in working capital (56) (58) 72
664 446 478
Movements in working capital
Increase in inventories (85) (63) (35)
Decrease (increase) in trade and other
receivables (46) (34) 55
Increase in trade and other payables 75 39 52
(56) (58) 72
Year Year
ended ended
December December
2010 2009
US Dollar million Unaudited Audited
Cash flows from operating activities
Receipts from customers 5,448 3,845
Payments to suppliers and employees (3,734) (2,500)
Cash generated from operations 1,714 1,345
Dividends received from equity accounted investments 143 101
Taxation paid (188) (147)
Cash utilised for hedge buy-back costs (2,611) (797)
Net cash (outflow) inflow from operating activities (942) 502
Cash flows from investing activities
Capital expenditure (973) (1,019)
Proceeds from disposal of tangible assets 69 1,142
Other investments acquired (114) (89)
Acquisition of associates and equity accounted joint
ventures (44) (354)
Proceeds on disposal of associate 1 -
Loans advanced to associates and equity accounted joint
ventures (3) (2)
Loans repaid from associates and equity accounted joint
ventures - -
Proceeds from disposal of investments 142 81
Decrease (increase) in cash restricted for use 25 (10)
Interest received 32 55
Loans advanced (6) -
Repayment of loans advanced - 1
Net cash outflow from investing activities (871) (195)
Cash flows from financing activities
Proceeds from issue of share capital 798 306
Share issue expenses (20) (11)
Proceeds from borrowings 2,316 2,774
Repayment of borrowings (1 642) (2 731)
Finance costs paid (115) (111)
Mandatory convertible bonds transaction costs (26) -
Dividends paid (117) (56)
Net cash (outflow) inflow from financing activities 1,194 171
Net (decrease) increase in cash and cash equivalents (619) 478
Translation 105 47
Cash and cash equivalents at beginning of period 1,100 575
Cash and cash equivalents at end of period (1) 586 1,100
Cash generated from operations
Profit (loss) before taxation 405 (121)
Adjusted for:
Movement on non-hedge derivatives and other commodity
contracts 408 1,787
Amortisation of tangible assets 690 555
Finance costs and unwinding of obligations 166 139
Environmental, rehabilitation and other expenditure 78 (6)
Special items 152 (683)
Amortisation of intangible assets 2 2
Deferred stripping 125 (48)
Fair value adjustment on option component of
convertible bonds 1 33
Fair value loss on mandatory convertible bonds 55 -
Interest received (43) (54)
Share of equity accounted investments` profit (63) (94)
Other non-cash movements 37 (115)
Movements in working capital (299) (50)
1,714 1,345
Movements in working capital
Increase in inventories (236) (155)
Decrease (increase) in trade and other receivables (142) (45)
Increase in trade and other payables 79 150
(299) (50)
(1) The cash and cash equivalents balance at 31 December 2010 includes cash and
cash equivalents included on the statement of financial position as part of non-
current assets held for sale of $11m.
Rounding of figures may result in computational discrepancies.
Group statement of changes in equity
Equity holders of the parent
Cash
Share Other flow
capital & capital Retained hedge
SA Rand million premium reserves earnings reserve
37,336
Balance at 31 December 2008 799 (22,765) (1,008)
(Loss) profit for the year (2,762)
Other comprehensive income (expense) 779
Total comprehensive (expense)
income - - (2,762) 779
Shares issued 2,582
Shares issue expenses (84)
Share-based payment for share
awards net of exercised 122
Dividends paid (392)
Dividends of subsidiaries
Equity transaction of joint
venture 306
Translation (33) 180 55
Balance at 31 December 2009 39,834 1,194 (25,739) (174)
Profit for the year 637
Other comprehensive (expense)
income (1) 183
Total comprehensive (expense)
income - (1) 637 183
Shares issued 5,988
Shares issue expenses (144)
Share-based payment for share
awards
net of exercised 92
Dividends paid (492)
Dividends of subsidiaries
Transfers to other reserves 25 (25)
Translation (35) 157 1
Balance at 31 December 2010 45,678 1,275 (25,437) (15)
US Dollar million
Balance at 31 December 2008 5,485 85 (2,361) (107)
(Loss) profit for the year (320)
Other Comprehensive income 90
Total comprehensive (expense)
income - - (320) 90
Shares issued 331
Shares issue expenses (11)
Share-based payment for share
awards
net of exercised 15
Dividends paid (45)
Dividends of subsidiaries
Equity transaction of joint venture 37
Translation 24 (18) (6)
Balance at 31 December 2009 5,805 161 (2,744) (23)
Profit for the year 76
Other comprehensive income
(expense) 25
Total comprehensive income
(expense) - - 76 25
Shares issued 842
Shares issue expenses (20)
Share-based payment for share
awards net of exercised 13
Dividends paid (67)
Dividends of subsidiaries
Transfers to other reserves 3 (3)
Translation 17 (15) (1)
Balance at 31 December 2010 6,627 194 (2,750) (2)
Equity holders of the parent
Available Foreign
for Actuarial currency
sale (losses) translation
SA Rand million reserve gains reserve
Balance at 31 December 2008 (18) (347) 8,959
(Loss) profit for the year
Other comprehensive income (expense) 469 60 (2,645)
Total comprehensive (expense) income 469 60 (2,645)
Shares issued
Shares issue expenses
Share-based payment for share awards
net of exercised
Dividends paid
Dividends of subsidiaries
Equity transaction of joint venture
Translation (37) 2
Balance at 31 December 2009 414 (285) 6,314
Profit for the year
Other comprehensive (expense) income 218 (128) (1,766)
Total comprehensive (expense) income 218 (128) (1,766)
Shares issued
Shares issue expenses
Share-based payment for share awards
net of exercised
Dividends paid
Dividends of subsidiaries
Transfers to other reserves
Translation (64) 4
Balance at 31 December 2010 568 (409) 4,548
US Dollar million
Balance at 31 December 2008 (2) (37) (635)
(Loss) profit for the year
Other Comprehensive income 55 7 318
Total comprehensive (expense) income 55 7 318
Shares issued
Shares issue expenses
Share-based payment for share awards
net of exercised
Dividends paid
Dividends of subsidiaries
Equity transaction of joint venture
Translation 3 (8)
Balance at 31 December 2009 56 (38) (317)
Profit for the year
Other comprehensive income (expense) 30 (18) 213
Total comprehensive income (expense) 30 (18) 213
Shares issued
Shares issue expenses
Share-based payment for share awards
net of exercised
Dividends paid
Dividends of subsidiaries
Transfers to other reserves
Translation (6)
Balance at 31 December 2010 86 (62) (104)
Non-
controlling Total
SA Rand million Total interests equity
Balance at 31 December 2008 22,956 790 23,746
(Loss) profit for the year (2,762) 417 (2,345)
Other comprehensive income (expense) (1,337) 9 (1,328)
Total comprehensive (expense) income (4,099) 426 (3,673)
Shares issued 2,582 2,582
Shares issue expenses (84) (84)
Share-based payment for share awards
net of exercised 122 122
Dividends paid (392) (392)
Dividends of subsidiaries - (83) (83)
Equity transaction of joint venture 306 306
Translation 167 (167) -
Balance at 31 December 2009 21,558 966 22,524
Profit for the year 637 381 1,018
Other comprehensive (expense) income (1,494) (1,494)
Total comprehensive (expense) income (857) 381 (476)
Shares issued 5,988 5,988
Shares issue expenses (144) (144)
Share-based payment for share awards
net of exercised 92 92
Dividends paid (492) (492)
Dividends of subsidiaries - (469) (469)
Transfers to other reserves - -
Translation 63 (63) -
Balance at 31 December 2010 26,208 815 27,023
US Dollar million
Balance at 31 December 2008 2,428 83 2,511
(Loss) profit for the year (320) 52 (268)
Other Comprehensive income 470 1 471
Total comprehensive (expense) income 150 53 203
Shares issued 331 331
Shares issue expenses (11) (11)
Share-based payment for share awards
net of exercised 15 15
Dividends paid (45) (45)
Dividends of subsidiaries - (11) (11)
Equity transaction of joint venture 37 37
Translation (5) 5 -
Balance at 31 December 2009 2,900 130 3,030
Profit for the year 76 53 129
Other comprehensive income (expense) 250 250
Total comprehensive income (expense) 326 53 379
Shares issued 842 842
Shares issue expenses (20) (20)
Share-based payment for share awards
net of exercised 13 13
Dividends paid (67) (67)
Dividends of subsidiaries - (64) (64)
Transfers to other reserves - -
Translation (5) 5 -
Balance at 31 December 2010 3,989 124 4,113
Rounding of figures may result in computational discrepancies.
Segmental reporting
for the quarter and year ended 31 December 2010
AngloGold Ashanti has implemented IFRS 8 "Operating Segments" with effect from 1
January 2009. AngloGold Ashanti`s operating segments are being reported based on
the financial information provided to the Chief Executive Officer and the
Executive Management team, collectively identified as the Chief Operating
Decision Maker ("CODM"). As a result of changes in management structure and
reporting from 1 January 2010, the CODM has changed its reportable segments.
Individual members of the Executive Management team are responsible for
geographic regions of the business. Comparative information has been presented
on a consistent basis. Navachab which was previously included in Southern Africa
now forms part of Continental Africa and North and South America has been
combined into Americas. Southern Africa has been renamed to South Africa. The
Johannesburg corporate office was previously included in Southern Africa and now
forms part of "Other".
Quarter ended Year ended
Dec Sep Dec Dec Dec
2010 2010 2009 2010 2009
Unaudited Unaudited Unaudited Unaudited Audited
SA Rand million
Gold income
South Africa 4,499 4,633 3,469 16,056 13,625
Continental
Africa 3,654 3,490 3,920 13,604 11,723
Australasia 988 711 848 3,391 1,819
Americas 2,073 2,082 1,823 8,202 6,552
11,214 10,916 10,060 41,253 33,719
Equity
accounted
investments
included above (600) (544) (826) (2,420) (2,974)
10,614 10,372 9,234 38,833 30,745
Quarter ended Year ended
Dec Sep Dec Dec Dec
2010 2010 2009 2010 2009
Unaudited Unaudited Unaudited Unaudited Audited
US Dollar million
Gold income
South Africa 654 634 465 2,207 1,665
Continental
Africa 532 478 525 1,868 1,435
Australasia 143 98 113 466 221
Americas 301 285 244 1,124 805
1,630 1,495 1,346 5,665 4,126
Equity
accounted
investments
included above (87) (75) (111) (331) (358)
1,543 1,420 1,236 5,334 3,768
Quarter ended Year ended
Dec Sep Dec Dec Dec
2010 2010 2009 2010 2009
Unaudited Unaudited Unaudited Unaudited Audited
SA Rand million
Gross profit (loss)
South Africa (345) 2,742 242 3,180 (1,778)
Continental
Africa 4,412 (573) (74) 4,219 (976)
Australasia (513) (992) 31 (1,452) (1,325)
Americas (317) 1,636 344 2,664 735
Other 13 28 86 171 244
3,250 2,841 629 8,782 (3,100)
Equity accounted
investments
included above (180) (168) (320) (918) (1,309)
3,069 2,672 309 7,864 (4,409)
Quarter ended Year ended
Dec Sep Dec Dec Dec
2010 2010 2009 2010 2009
Unaudited Unaudited Unaudited Unaudited Audited
US Dollar million
Gross profit (loss)
South Africa (50) 375 32 429 (255)
Continental
Africa 640 (86) (10) 604 (116)
Australasia (75) (139) 4 (206) (168)
Americas (46) 226 46 357 89
Other 2 4 11 23 28
471 380 83 1,207 (422)
Equity accounted
investments
included above (26) (23) (43) (125) (156)
445 357 40 1,082 (578)
Quarter ended Year ended
Dec Sep Dec Dec Dec
2010 2010 2009 2010 2009
Unaudited Unaudited Unaudited Unaudited Audited
SA Rand million
Adjusted gross
profit excluding
hedge buy-back costs
South Africa 1,652 1,374 880 4,580 4,556
Continental Africa 971 795 920 3,314 2,856
Australasia 279 (38) 57 217 473
Americas 863 979 896 3,563 3,181
Other 13 28 88 171 243
3,778 3,137 2,841 11,845 11,309
Equity accounted
investments
included above (180) (168) (320) (918) (1,308)
3,598 2,969 2,521 10,927 10,001
Quarter ended Year ended
Dec Sep Dec Dec Dec
2010 2010 2009 2010 2009
Unaudited Unaudited Unaudited Unaudited Audited
US Dollar million
Adjusted gross
profit excluding
hedge buy-back costs
South Africa 239 189 118 634 539
Continental Africa 141 109 123 455 351
Australasia 41 (5) 8 33 56
Americas 125 134 120 487 390
Other 2 4 11 23 28
548 431 380 1,632 1,364
Equity accounted
investments
included above (26) (23) (43) (125) (156)
522 408 337 1,507 1,209
Rounding of figures may result in computational discrepancies.
Quarter ended Year ended
Dec Sep Dec Dec Dec
2010 2010 2009 2010 2009
Unaudited Unaudited Unaudited Unaudited Audited
kg
Gold
production (1)
South Africa 14,801 14,859 13,418 55,528 55,908
Continental
Africa 11,623 11,600 12,993 46,390 49,292
Australasia 3,175 2,894 3,331 12,313 12,477
Americas 6,105 6,776 7,025 26,187 25,372
35,703 36,129 36,767 140,418 143,049
Quarter ended Year ended
Dec Sep Dec Dec Dec
2010 2010 2009 2010 2009
Unaudited Unaudited Unaudited Unaudited Audited
oz (000)
Gold production (1)
South Africa 476 478 431 1,785 1,797
Continental
Africa 374 373 418 1,492 1,585
Australasia 102 93 107 396 401
Americas 196 218 226 842 816
1,148 1,162 1,182 4,515 4,599
Quarter ended Year ended
Dec Sep Dec Dec Dec
2010 2010 2009 2010 2009
Unaudited Unaudited Unaudited Unaudited Audited
SA Rand million
Capital expenditure
South Africa 1,009 731 931 3,096 3,228
Continental
Africa 685 439 510 1,708 1,654
Australasia 71 72 60 290 1,599
Americas 782 604 737 2,270 2,157
Corporate and other 25 9 36 49 88
2,572 1,855 2,275 7,413 8,726
Equity accounted
investments
included above (102) (84) (33) (305) (70)
2,470 1,771 2,242 7,108 8,656
Quarter ended Year ended
Dec Sep Dec Dec Dec
2010 2010 2009 2010 2009
Unaudited Unaudited Unaudited Unaudited Audited
US Dollar million
Capital expenditure
South Africa 144 100 121 424 385
Continental Africa 97 60 66 234 198
Australasia 10 10 8 40 177
Americas 111 82 94 311 258
Corporate and other 3 1 4 6 9
365 253 293 1,015 1,027
Equity accounted
investments
included above (15) (11) (4) (42) (8)
350 242 289 973 1,019
As at As at As at
Dec Sep Dec
2010 2010 2009
Unaudited Unaudited Audited
SA Rand million
Total assets
South Africa 16,226 16,394 17,061
Continental Africa 26,060 26,896 29,401
Australasia 3,644 3,466 4,494
Americas 13,855 13,918 14,642
Corporate and other 3,384 9,667 7,739
63,169 70,341 73,337
Equity accounted investments
included above (540) (522) (567)
62,629 69,819 72,770
As at As at As at
Dec Sep Dec
2010 2010 2009
Unaudited Unaudited Audited
US Dollar million
Total assets
South Africa 2,469 2,356 2,295
Continental Africa 3,966 3,864 3,954
Australasia 555 498 604
Americas 2,109 2,000 1,970
Corporate and other 515 1,389 1,041
9,614 10,107 9,864
Equity accounted investments
included above (82) (75) (77)
9,532 10,032 9,787
(1) Gold production includes equity accounted investments.
Rounding of figures may result in computational discrepancies.
Notes
for the quarter and year ended 31 December 2010
1. Basis of preparation
The financial statements in this quarterly report have been prepared in
accordance with the historic cost convention except for certain financial
instruments which are stated at fair value. The group`s accounting policies used
in the preparation of these financial statements are consistent with those used
in the annual financial statements for the year ended 31 December 2009 and
revised International Financial Reporting Standards (IFRS) which are effective 1
January 2010, where applicable. Effective 1 January 2010, the Chief Operating
Decision Maker changed the reportable segments. Details are included in
Segmental reporting.
The financial statements of AngloGold Ashanti Limited have been prepared in
compliance with IAS34 Interim reporting, JSE Listings Requirements and in the
manner required by the South African Companies Act, 1973 for the preparation of
financial information of the group for the quarter and year ended 31 December
2010.
2. Revenue
Quarter ended
Dec Sep Dec
2010 2010 2009
Unaudited Unaudited Unaudited
SA Rand million
Gold income 10,614 10,372 9,234
By-products (note 3) 321 224 147
Royalties received 42 15 -
Interest received 119 58 133
11,095 10,668 9,514
Year ended
Dec Dec
2010 2009
Unaudited Audited
SA Rand million
Gold income 38,833 30,745
By-products (note 3) 935 772
Royalties received 56 -
Interest received 311 444
40,135 31,961
Quarter ended
Dec Sep Dec
2010 2010 2009
Unaudited Unaudited Unaudited
US Dollar million
Gold income 1,543 1,420 1,236
By-products (note 3) 47 31 20
Royalties received 6 2 -
Interest received 17 8 18
1,613 1,461 1,273
Year ended
Dec Dec
2010 2009
Unaudited Audited
US Dollar million
Gold income 5,334 3,768
By-products (note 3) 129 94
Royalties received 8 -
Interest received 43 54
5,514 3,916
3. Cost of sales
Quarter ended
Dec Sep Dec
2010 2010 2009
Unaudited Unaudited Unaudited
SA Rand million
Cash operating costs (5,120) (5,220) (4,942)
Insurance reimbursement - 37 -
By-products revenue (note 2) 321 224 147
(4,799) (4,959) (4,795)
Royalties (313) (282) (179)
Other cash costs (54) (43) (43)
Total cash costs (5,166) (5,284) (5,017)
Retrenchment costs (64) (23) (39)
Rehabilitation and other non-cash
costs (529) (106) 5
Production costs (5,759) (5,414) (5,050)
Amortisation of tangible assets (1,341) (1,240) (1,152)
Amortisation of intangible assets (7) (4) (4)
Total production costs (7,107) (6,658) (6,206)
Inventory change 92 (1) (13)
(7,016) (6,659) (6,219)
Year ended
Dec Dec
2010 2009
Unaudited Audited
SA Rand million
Cash operating costs (20,084) (18,844)
Insurance reimbursement 123 -
By-products revenue (note 2) 935 772
(19,026) (18,072)
Royalties (1,030) (699)
Other cash costs (182) (134)
Total cash costs (20,238) (18,905)
Retrenchment costs (166) (110)
Rehabilitation and other non-cash
costs (756) (182)
Production costs (21,160) (19,197)
Amortisation of tangible assets (5,022) (4,615)
Amortisation of intangible assets (18) (18)
Total production costs (26,200) (23,830)
Inventory change 367 610
(25,833) (23,220)
Quarter ended
Dec Sep Dec
2010 2010 2009
Unaudited Unaudited Unaudited
US Dollar million
Cash operating costs (745) (715) (662)
Insurance reimbursement - 5 -
By-products revenue (note 2) 47 31 20
(698) (679) (642)
Royalties (45) (39) (24)
Other cash costs (8) (6) (6)
Total cash costs (751) (724) (671)
Retrenchment costs (9) (3) (5)
Rehabilitation and other non-cash
costs (78) (15) 1
Production costs (838) (741) (676)
Amortisation of tangible assets (195) (170) (154)
Amortisation of intangible assets (1) - -
Total production costs (1,034) (912) (830)
Inventory change 13 1 (2)
(1,021) (911) (833)
Year ended
Dec Dec
2010 2009
Unaudited Audited
US Dollar million
Cash operating costs (2,756) (2,277)
Insurance reimbursement 16 -
By-products revenue (note 2) 129 94
(2,611) (2,183)
Royalties (142) (84)
Other cash costs (25) (16)
Total cash costs (2,778) (2,283)
Retrenchment costs (23) (14)
Rehabilitation and other non-cash
costs (109) (22)
Production costs (2,910) (2,319)
Amortisation of tangible assets (690) (555)
Amortisation of intangible assets (2) (2)
Total production costs (3,602) (2,876)
Inventory change 52 63
(3,550) (2,813)
4. Loss on non-hedge derivatives and other commodity contracts
Quarter ended
Dec Sep Dec
2010 2010 2009
Unaudited Unaudited Unaudited
SA Rand million
(Loss) gain on realised non-hedge
derivatives - (745) (494)
Loss on hedge buy-back costs (7,316) (11,639) -
Gain (loss) on unrealised non-hedge
derivatives 6,787 11,343 (2,212)
(529) (1,041) (2,706)
Year ended
Dec Dec
2010 2009
Unaudited Audited
SA Rand million
(Loss) gain on realised non-hedge
derivatives (2,073) 2,476
Loss on hedge buy-back costs (18,954) (6,315)
Gain (loss) on unrealised non-hedge
derivatives 15,891 (8,095)
(5,136) (11,934)
Quarter ended
Dec Sep Dec
2010 2010 2009
Unaudited Unaudited Unaudited
US Dollar million
(Loss) gain on realised non-hedge
derivatives - (101) (66)
Loss on hedge buy-back costs (1,061) (1,637) -
Gain (loss) on unrealised non-hedge
derivatives 985 1,586 (297)
(77) (152) (363)
Year ended
Dec Dec
2010 2009
Unaudited Audited
US Dollar million
(Loss) gain on realised non-hedge
derivatives (277) 254
Loss on hedge buy-back costs (2,698) (797)
Gain (loss) on unrealised non-hedge
derivatives 2,273 (990)
(702) (1,533)
Rounding of figures may result in computational discrepancies.
5. Other operating (expenses) income
Quarter ended
Dec Sep Dec
2010 2010 2009
Unaudited Unaudited Unaudited
SA Rand million
Pension and medical defined benefit
provisions 45 (24) 29
Claims filed by former employees in
respect of loss of employment,
work-related accident injuries and
diseases, governmental fiscal
claims and care and maintenance of
old tailings operations (72) (26) 31
Miscellaneous - - (2)
(27) (50) 58
Year ended
Dec Dec
2010 2009
Unaudited Audited
SA Rand million
Pension and medical defined benefit
provisions (28) (44)
Claims filed by former employees in
respect of loss of employment,
work-related accident injuries and
diseases, governmental fiscal
claims and care and maintenance of
old tailings operations (121) (31)
Miscellaneous - (5)
(149) (80)
Quarter ended
Dec Sep Dec
2010 2010 2009
Unaudited Unaudited Unaudited
US Dollar million
Pension and medical defined benefit
provisions 7 (3) 4
Claims filed by former employees in
respect of loss of employment,
work-related accident injuries and
diseases, governmental fiscal
claims and care and maintenance of
old tailings operations (11) (4) 4
Miscellaneous - - -
(4) (7) 8
Year ended
Dec Dec
2010 2009
Unaudited Audited
US Dollar million
Pension and medical defined benefit
provisions (3) (5)
Claims filed by former employees in
respect of loss of employment,
work-related accident injuries and
diseases, governmental fiscal
claims and care and maintenance of
old tailings operations (17) (3)
Miscellaneous - -
(20) (8)
6. Special items
Quarter ended
Dec Sep Dec
2010 2010 2009
Unaudited Unaudited Unaudited
SA Rand million
Indirect tax expenses and legal claims (46) - (240)
Mandatory convertible bonds issue
discount, underwriting and
professional fees 5 (401) -
Net (impairments) reversals of
tangible
assets (note 9) (399) (92) 5,209
Recovery (loss) on consignment stock - 39 14
Impairment of other receivables (11) (4) -
Contractor termination costs at Geita
Gold Mining Limited - - -
Insurance claim recovery 31 93 54
Royalties received 41 15 -
Net (loss) profit on disposal and
derecognition of land, mineral rights,
tangible assets and exploration
properties (note 9) (81) (74) (275)
Impairment of investment (note 9) (16) - -
Profit on disposal of investments
(note 9) 269 - -
(208) (424) 4,761
Year ended
Dec Dec
2010 2009
Unaudited Audited
SA Rand million
Indirect tax expenses and legal claims (125) (219)
Mandatory convertible bonds issue
discount, underwriting and
professional fees (396) -
Net (impairments) reversals of tangible
assets (note 9) (634) 5,115
Recovery (loss) on consignment stock 39 (95)
Impairment of other receivables (67) (66)
Contractor termination costs at Geita
Gold Mining Limited (8) -
Insurance claim recovery 134 54
Royalties received 56 -
Net (loss) profit on disposal and
derecognition of land, mineral rights,
tangible assets and exploration
properties (note 9) (191) 420
Impairment of investment (note 9) (16) -
Profit on disposal of investments
(note 9) 314 -
(894) 5,209
Quarter ended
Dec Sep Dec
2010 2010 2009
Unaudited Unaudited Unaudited
US Dollar million
Indirect tax expenses and legal
claims (6) - (32)
Mandatory convertible bonds issue
discount, underwriting and
professional fees 1 (56) -
Net (impairments) reversals of
tangible
assets (note 9) (59) (13) 696
Recovery (loss) on consignment stock - 5 2
Impairment of other receivables (2) (1) -
Contractor termination costs at
Geita
Gold Mining Limited - - -
Insurance claim recovery 4 14 7
Royalties received 6 2 -
Net (loss) profit on disposal and
derecognition of land, mineral
rights,
tangible assets and exploration
properties (note 9) (11) (10) (37)
Impairment of investment (note 9) (2) - -
Profit on disposal of investments
(note 9) 37 - -
(31) (60) 636
Year ended
Dec Dec
2010 2009
Unaudited Audited
US Dollar million
Indirect tax expenses and legal claims (17) (29)
Mandatory convertible bonds issue
discount, underwriting and
professional fees (56) -
Net (impairments) reversals of tangible
assets (note 9) (91) 683
Recovery (loss) on consignment stock 5 (12)
Impairment of other receivables (9) (7)
Contractor termination costs at Geita
Gold Mining Limited (1) -
Insurance claim recovery 19 7
Royalties received 8 -
Net (loss) profit on disposal and
derecognition of land, mineral rights,
tangible assets and exploration
properties (note 9) (25) 49
Impairment of investment (note 9) (2) -
Profit on disposal of investments
(note 9) 43 -
(126) 691
7. Finance costs and unwinding of obligations
Quarter ended
Dec Sep Dec
2010 2010 2009
Unaudited Unaudited Unaudited
SA Rand million
Finance costs (259) (189) (191)
Unwinding of obligations, accretion of
convertible bonds and other
discounts (98) (96) (77)
(357) (285) (268)
Year ended
Dec Dec
2010 2009
Unaudited Audited
SA Rand million
Finance costs (834) (835)
Unwinding of obligations, accretion of
convertible bonds and other
discounts (369) (311)
(1,203) (1,146)
Quarter ended
Dec Sep Dec
2010 2010 2009
Unaudited Unaudited Unaudited
US Dollar million
Finance costs (38) (26) (26)
Unwinding of obligations, accretion
of convertible bonds and other
discounts (14) (13) (10)
(52) (39) (36)
Year ended
Dec Dec
2010 2009
Unaudited Audited
US Dollar million
Finance costs (115) (101)
Unwinding of obligations, accretion of
convertible bonds and other
discounts (51) (38)
(166) (139)
8. Taxation
Quarter ended
Dec Sep Dec
2010 2010 2009
Unaudited Unaudited Unaudited
SA Rand million
South African taxation
Mining tax - 84 (60)
Non-mining tax (53) 71 (10)
Over (under) provision prior year 34 618 7
Deferred taxation
Temporary differences 80 1,311 (180)
Unrealised non-hedge derivatives and
other commodity contracts (461) (2,152) 204
Change in estimated deferred tax rate 39 (7) 156
(361) (76) 118
Foreign taxation
Normal taxation (617) (358) (335)
Over provision prior year 46 29 90
Deferred taxation
Temporary differences 54 87 (1,410)
Unrealised non-hedge derivatives and
other commodity contracts - - 15
(517) (242) (1,640)
(878) (318) (1,522)
Year ended
Dec Dec
2010 2009
Unaudited Audited
SA Rand million
South African taxation
Mining tax - (153)
Non-mining tax (112) (89)
Over (under) provision prior year 628 (33)
Deferred taxation
Temporary differences 1,377 (535)
Unrealised non-hedge derivatives and
other commodity contracts (2,353) 1,451
Change in estimated deferred tax rate 39 156
(421) 797
Foreign taxation
Normal taxation (1,628) (1,113)
Over provision prior year 17 50
Deferred taxation
Temporary differences 37 (1,220)
Unrealised non-hedge derivatives and
other commodity contracts (23) 314
(1,597) (1,969)
(2,018) (1,172)
Quarter ended
Dec Sep Dec
2010 2010 2009
Unaudited Unaudited Unaudited
US Dollar million
South African taxation
Mining tax - 13 (8)
Non-mining tax (8) 10 (1)
Over (under) provision prior year 5 87 1
Deferred taxation
Temporary differences 12 184 (24)
Unrealised non-hedge derivatives and
other commodity contracts (67) (301) 27
Change in estimated deferred tax
rate 6 (1) 21
(52) (7) 16
Foreign taxation
Normal taxation (90) (49) (45)
Over provision prior year 7 4 12
Deferred taxation
Temporary differences 8 12 (188)
Unrealised non-hedge derivatives and
other commodity contracts - - 2
(75) (33) (219)
(127) (41) (204)
Year ended
Dec Dec
2010 2009
Unaudited Audited
US Dollar million
South African taxation
Mining tax - (19)
Non-mining tax (13) (10)
Over (under) provision prior year 89 (4)
Deferred taxation
Temporary differences 195 (61)
Unrealised non-hedge derivatives and
other commodity contracts (334) 181
Change in estimated deferred tax rate 6 21
(57) 108
Foreign taxation
Normal taxation (226) (138)
Over provision prior year 3 7
Deferred taxation
Temporary differences 7 (164)
Unrealised non-hedge derivatives and
other commodity contracts (3) 40
(219) (255)
(276) (147)
Rounding of figures may result in computational discrepancies.
9. Headline earnings (loss)
Quarter ended
Dec Sep Dec
2010 2010 2009
Unaudited Unaudited Unaudited
SA Rand million
The profit (loss) attributable to
equity
shareholders has been adjusted by
the following to arrive at headline
earnings (loss):
Profit (loss) attributable to equity
shareholders 404 443 3,179
Net impairments (reversals) of
tangible
assets (note 6) 399 92 (5,209)
Net loss (profit) on disposal and
derecognition of land, mineral rights,
tangible assets and exploration
properties (note 6) 81 74 275
Impairment of investment (note 6) 16 - -
Profit on disposal of investments
(note 6) (269) - -
Impairment of investment in
associates and joint ventures 166 - 75
Reversal of impairment in associates (94) (74) (75)
Special items of associates - (7) 1
Taxation on items above - current
portion - - (12)
Taxation on items above - deferred
portion (143) (51) 1,414
561 476 (353)
Cents per share(1)
Headline earnings (loss) 146 129 (96)
Year ended
Dec Dec
2010 2009
Unaudited Audited
SA Rand million
The profit (loss) attributable to equity
shareholders has been adjusted by
the following to arrive at headline
earnings (loss):
Profit (loss) attributable to equity
shareholders 637 (2,762)
Net impairments (reversals) of tangible
assets (note 6) 634 (5,115)
Net loss (profit) on disposal and
derecognition of land, mineral rights,
tangible assets and exploration
properties (note 6) 191 (420)
Impairment of investment (note 6) 16 -
Profit on disposal of investments
(note 6) (314) -
Impairment of investment in
associates and joint ventures 157 76
Reversal of impairment in associates (126) (75)
Special items of associates (7) 1
Taxation on items above - current
portion 4 145
Taxation on items above - deferred
portion (230) 1,360
962 (6,790)
Cents per share(1)
Headline earnings (loss) 259 (1,880)
Quarter ended
Dec Sep Dec
2010 2010 2009
Unaudited Unaudited Unaudited
US Dollar million
The profit (loss) attributable to
equity
shareholders has been adjusted by
the following to arrive at headline
earnings (loss):
Profit (loss) attributable to equity
shareholders 56 51 424
Net impairments (reversals) of
tangible
assets (note 6) 59 13 (696)
Net loss (profit) on disposal and
derecognition of land, mineral
rights,
tangible assets and exploration
properties (note 6) 11 10 37
Impairment of investment (note 6) 2 - -
Profit on disposal of investments
(note 6) (37) - -
Impairment of investment in
associates and joint ventures 23 - 10
Reversal of impairment in associates (13) (10) (10)
Special items of associates - (1) -
Taxation on items above - current
portion - - (2)
Taxation on items above - deferred
portion (21) (7) 189
79 55 (48)
Cents per share(1)
Headline earnings (loss) 21 15 (13)
Year ended
Dec Dec
2010 2009
Unaudited Audited
US Dollar million
The profit (loss) attributable to equity
shareholders has been adjusted by
the following to arrive at headline
earnings (loss):
Profit (loss) attributable to equity
shareholders 76 (320)
Net impairments (reversals) of tangible
assets (note 6) 91 (683)
Net loss (profit) on disposal and
derecognition of land, mineral rights,
tangible assets and exploration
properties (note 6) 25 (49)
Impairment of investment (note 6) 2 -
Profit on disposal of investments
(note 6) (43) -
Impairment of investment in
associates and joint ventures 24 10
Reversal of impairment in associates (19) (10)
Special items of associates (1) -
Taxation on items above - current
portion - 18
Taxation on items above - deferred
portion (33) 182
122 (852)
Cents per share(1)
Headline earnings (loss) 33 (236)
(1)Calculated on the basic weighted average number of ordinary shares.
10. Number of shares
Quarter ended
Dec Sep Dec
2010 2010 2009
Unaudited Unaudited Unaudited
Authorised number of shares:
Ordinary shares of 25 SA
cents each 600,000,000 600,000,000 600,000,000
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 381,204,080 380,966,077 362,240,669
E ordinary shares in issue 2,806,126 2,837,150 3,794,998
Total ordinary shares: 384,010,206 383,803,227 366,035,667
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 381,103,478 364,556,377 362,137,200
E ordinary shares 2,818,699 2,954,409 3,809,476
Fully vested options 797,875 905,619 539,666
Weighted average number of shares 384,720,052 368,416,405 366,486,342
Dilutive potential of share options 1,493,052 1,113,099 1,205,730
Diluted number of ordinary
shares(1) 386,213,104 369,529,504 367,692,072
Year ended
Dec Dec
2010 2009
Unaudited Audited
Authorised number of shares:
Ordinary shares of 25 SA cents each 600,000,000 600,000,000
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 381,204,080 362,240,669
E ordinary shares in issue 2,806,126 3,794,998
Total ordinary shares: 384,010,206 366,035,667
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 367,664,700 356,563,773
E ordinary shares 3,182,662 3,873,169
Fully vested options 1,023,459 791,353
Weighted average number of shares 371,870,821 361,228,295
Dilutive potential of share options 1,569,606 -
Diluted number of ordinary shares(1) 373,440,427 361,228,295
(1) The basic and diluted number of ordinary shares is the same for the year
ended December 2009 as the effects of shares for performance related options are
anti-dilutive.
11. Share capital and premium
As at
Dec Sep Dec
2010 2010 2009
Unaudited Unaudited Audited
SA Rand million
Balance at beginning of period 40,662 40,662 38,246
Ordinary shares issued 5,771 5,733 2,438
E ordinary shares cancelled (90) (85) (22)
Sub-total 46,343 46,310 40,662
Redeemable preference shares held
within the group (313) (313) (313)
Ordinary shares held within the group (139) (181) (212)
E ordinary shares held within the group (213) (218) (303)
Balance at end of period 45,678 45,598 39,834
As at
Dec Sep Dec
2010 2010 2009
Unaudited Unaudited Audited
US Dollar million
Balance at beginning of period 5,935 5,935 5,625
Ordinary shares issued 812 806 312
E ordinary shares cancelled (13) (12) (2)
Sub-total 6,734 6,729 5,935
Redeemable preference shares held
within the group (53) (53) (53)
Ordinary shares held within the group (22) (28) (32)
E ordinary shares held within the
group (32) (33) (45)
Balance at end of period 6,627 6,615 5,805
Rounding of figures may result in computational discrepancies.
12. Exchange rates
Dec Sep Dec
2010 2010 2009
Unaudited Unaudited Unaudited
ZAR/USD average for the year to date 7.30 7.45 8.39
ZAR/USD average for the quarter 6.88 7.31 7.47
ZAR/USD closing 6.57 6.96 7.44
ZAR/AUD average for the year to date 6.71 6.68 6.56
ZAR/AUD average for the quarter 6.80 6.61 6.80
ZAR/AUD closing 6.70 6.73 6.67
BRL/USD average for the year to date 1.76 1.78 2.00
BRL/USD average for the quarter 1.70 1.75 1.74
BRL/USD closing 1.67 1.69 1.75
ARS/USD average for the year to date 3.91 3.89 3.73
ARS/USD average for the quarter 3.96 3.94 3.81
ARS/USD closing 3.97 3.96 3.80
13. Capital commitments
Dec Sep Dec
2010 2010 2009
Unaudited Unaudited Audited
SA Rand million
Orders placed and outstanding on
capital contracts
at the prevailing rate of exchange(1) 1,156 1,624 976
Dec Sep Dec
2010 2010 2009
Unaudited Unaudited Audited
US Dollar million
Orders placed and outstanding on
capital contracts
at the prevailing rate of exchange(1) 176 233 131
(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,
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 finance arrangements contain financial covenants
and other similar undertakings. To the extent that external borrowings are
required, the group`s 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 sufficient measures are in place to ensure that these facilities can be
refinanced.
14. Contingencies
AngloGold Ashanti`s material contingent liabilities and assets at 31 December
2010 are detailed below:
Contingencies and guarantees SA Rand million US Dollar million
Contingent liabilities
Groundwater pollution(1) - -
Deep groundwater pollution - South
Africa(2) - -
Sales tax on gold deliveries - Brazil(3) 587 89
Other tax disputes - Brazil(4) 219 34
Indirect taxes - Ghana(5) 70 11
Contingent assets
Royalty - Boddington Gold Mine(6) - -
Royalty - Tau Lekoa Gold Mine(7) - -
Financial Guarantees
Oro Group (Pty) Limited(8) 100 15
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 - AngloGold Ashanti has identified groundwater
contamination plumes at certain of its operations, which have occurred primarily
as a result of seepage from mine residue stockpiles. Numerous scientific,
technical and legal studies have been undertaken to assist in determining the
magnitude of the contamination and to find sustainable remediation solutions.
The group 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. Subject to the completion of trials and the
technology being a proven remediation technique, no reliable estimate can be
made for the obligation.
(2) Deep groundwater pollution - The company 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. Due to the interconnected nature of mining operations, any proposed
solution needs to be a combined one supported by all the mines located in these
gold fields. As a result the Department of Mineral Resources and affected mining
companies are now involved in the development of a "Regional Mine Closure
Strategy". In view of the limitation of current information for the accurate
estimation of a liability, no reliable estimate can be made for the obligation.
(3) Sales tax on gold deliveries - 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. AngloGold Ashanti Brasil Mineracao Ltda. manages
the operation and its attributable share of the first assessment is
approximately $55m. 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 assessment, and the
company`s attributable share of the assessment is approximately $34m. The
company believes both assessments are in violation of federal legislation on
sales taxes.
(4) Other tax disputes - 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 $10m.
AngloGold Ashanti 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 $24m.
(5) Indirect taxes - AngloGold Ashanti (Ghana) Limited received a tax assessment
for $11m during September 2009 in respect of 2006, 2007 and 2008 tax years
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) Royalty - As a result of the sale of the interest in the Boddington Gold
Mine joint venture during 2009, the group is entitled to receive a royalty on
any gold recovered or produced by the Boddington Gold Mine, where the gold price
is in excess of Boddington Gold Mine`s cash cost plus $600/oz. The royalty
commenced on 1 July 2010 and is capped at a total amount of $100m, R657m.
Royalties of $2m, R17m were received during the quarter.
(7) Royalty - As a result of the sale of the interest in the Tau Lekoa Gold Mine
during 2010, the group is entitled to receive a royalty on the production of a
total of 1.5 million ounces by the Tau Lekoa Gold Mine and in the event that the
average monthly rand price of gold exceeds R180,000/kg (subject to inflation
adjustment). Where the average monthly rand price of gold does not exceed
R180,000/kg (subject to inflation adjustment), the ounces produced in that
quarter do not count towards the total 1.5 million ounces upon which the royalty
is payable.
The royalty will be determined at 3% of the net revenue (being gross revenue
less State royalties) generated by the Tau Lekoa assets. Royalties of $3m, R21m
were received during the quarter.
(8) Provision of surety - The company has provided sureties in favour of a
lender on a gold loan facility with its affiliate Oro Group (Pty) Limited and
one of its subsidiaries to a maximum value of $15m, R100m. The suretyship
agreements have a termination notice period of 90 days.
15. Concentration of risk
There is a concentration of risk in respect of recoverable value added tax and
fuel duties from the Tanzanian government:
Recoverable value added tax due from the Tanzanian government amounts to $49m
at 31 December 2010 (30 September 2010: $48m). The last audited value added tax
return was for the period ended 31 October 2010 and at the reporting date the
audited amount was $49m. The outstanding amounts at Geita have been discounted
to their present value at a rate of 7.82%.
Recoverable fuel duties from the Tanzanian government amounts to $62m at 31
December 2010 (30 September 2010: $55m). 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 the refund of fuel duties
amounting to $43m have been lodged with the Customs and Excise authorities which
are still outstanding, whilst claims for a refund of $19m have not yet been
submitted. The amounts outstanding have been discounted to their present value
at a rate of 7.82%.
16. Borrowings
AngloGold Ashanti`s borrowings are interest bearing.
17. Announcements
On 7 October 2010, AngloGold Ashanti completed the elimination of its gold hedge
book, providing the company and its shareholders with full exposure to the
prevailing gold price. As a result, the company will sell the gold it produces
at market prices and therefore expects to enhance cash flow and profit margins
as a result of removing hedge contracts with low committed gold prices.
On 26 October 2010, shareholders in a general meeting approved a specific
authority to place up to 18,140,000 ordinary shares of the company under the
control of the directors for purposes of the conversion of the $789m 6%
mandatory convertible subordinated bonds due 2013 issued on 15 September 2010.
AngloGold Ashanti realised net proceeds from the sale of its entire holding of
shares in Vancouver-based gold producer B2Gold Corporation ("B2Gold"). The
stake, equivalent to about 10.17% of B2Gold`s outstanding shares were sold on 9
November 2010 in an orderly fashion, after the markets closed.
On 11 November 2010, AngloGold Ashanti announced that the development of the
Tropicana Gold Project in Western Australia had been approved by the boards of
AngloGold Ashanti (70% interest) and Independence Group NL (30% interest). It is
anticipated that the project will produce 3.45 million ounces of gold over a ten
year mine life at a total cash cost of $696/oz to $715/oz(1). In the first three
years of operation, gold production is expected to be between 470,000oz and
490,000oz per annum at a cash cost of $568/oz to $588/oz(1). Capital
expenditure, including pre- production operating costs, is estimated at $676m to
$725m (Real) or $711m to $760m (Nominal including escalation).
(1) Assumes an exchange rate of A$:US$0.98.
18. Dividend
The directors declared Final Dividend No. 109 of 80 (Final Dividend No. 107: 70)
South African cents per ordinary share for the year ended 31 December 2010. In
compliance with the requirements of Strate, given the company`s primary listing
on the JSE Limited, the salient dates for payment of the dividend are as
follows:
To holders of ordinary shares and to holders of CHESS Depositary Interests
(CDIs)
Each CDI represents one-fifth of an ordinary share.
2011
Currency conversion date for UK pounds, Australian dollars
and Ghanaian cedis Thursday, 3 March
Last date to trade ordinary shares cum dividend Friday, 4 March
Last date to register transfers of certificated securities
cum dividend Friday, 4 March
Ordinary shares trade ex dividend Monday, 7 March
Record date Friday, 11 March
Payment date Friday, 18 March
On the payment date, dividends due to holders of certificated securities on the
South African share register will either be electronically transferred to
shareholders` bank accounts or, in the absence of suitable mandates, dividend
cheques will be posted to such shareholders.
Dividends in respect of dematerialised shareholdings will be credited to
shareholders` accounts with the relevant CSDP or broker.
To comply with further requirements of Strate, between Monday, 7 March 2011 and
Friday, 11 March 2011, both days inclusive, no transfers between the South
African, United Kingdom, Australian and Ghana share registers will be permitted
and no ordinary shares pertaining to the South African share register may be
dematerialised or rematerialised.
To holders of American Depositary Shares
Each American Depositary Share (ADS) represents one ordinary share.
2011
Ex dividend on New York Stock Exchange Wednesday, 9 March
Record date Friday, 11 March
Approximate date for currency conversion Friday, 18 March
Approximate payment date of dividend Monday, 28 March
Assuming an exchange rate of R7.2728/$, the dividend payable per ADS is
equivalent to 11 US cents. This compares with the final dividend of 9.4957 US
cents per ADS paid on 29 March 2010. However the actual rate of payment will
depend on the exchange rate on the date for currency conversion.
To holders of Ghanaian Depositary Shares (GhDSs)
100 GhDSs represent one ordinary share.
2011
Last date to trade and to register GhDSs cum dividend Friday, 4 March
GhDSs trade ex dividend Monday, 7 March
Record date Friday, 11 March
Approximate payment date of dividend Monday, 21 March
Assuming an exchange rate of R1/Cents (USD)0.2069, the dividend payable per
share is equivalent to 0.1655 cedis. This compares with the final dividend of
0.1322 cedis per share paid on 19 March 2010. However, the actual rate of
payment will depend on the exchange rate on the date for currency conversion. In
Ghana, the authorities have determined that dividends payable to residents on
the Ghana share register be subject to a final withholding tax at a rate of 8%.
In addition, directors declared Dividend No. E9 of 40 South African cents per E
ordinary share, payable to employees participating in the Bokamoso ESOP and
Izingwe Holdings (Proprietary) Limited. These dividends will be paid on Friday,
18 March 2011.
19. 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
T T MBOWENI M CUTIFANI
ChairmanChief Executive Officer
15 February 2011
Shareholders` notice board
Shareholders` diary:
Financial year-end 31 December
Annual financial statements posting on or about 31 March 2011
Annual general meeting 11:00 SA time 11 May 2011
Quarterly reports Released on or about
- Quarter ended 31 March 2011 11 May 2011
- Quarter ended 30 June 2011 1 August 2011
- Quarter ended 30 September 2011 1 November 2011
- Quarter ended 31 December 2011 *16 February 2012
* Approximate dates.
Dividends:
Last date to trade
Dividend Number Declared ordinary shares
cum dividend
Interim - number 108 10 August 2010 27 August 2010
Final - number 109 15 February 2011 4 March 2011
Interim - number 110 *2 August 2011 *19 August 2011
Dividend Number Payment date to Payment date to ADS
shareholders holders
Interim - number 108 10 September 2010 20 September 2010
Final - number 109 18 March 2011 28 March 2011
Interim - number 110 *2 September 2011 *12 September 2011
* Proposed dates.
Dividend policy: Dividends are proposed by, and approved by the board of
directors of AngloGold Ashanti, based on the interim and year-end financial
statements. Dividends are recognised when declared by the board of directors of
AngloGold Ashanti. AngloGold Ashanti expects to continue to pay dividends,
although there can be no assurance that dividends will be paid in the future or
as to the particular amounts that will be paid from year to year. The payments
of future dividends will depend upon the Board`s ongoing assessment of AngloGold
Ashanti`s earnings, after providing for long term growth and cash/debt
resources, the amount of reserves available for dividend using going concern
assessment and restrictions placed by the conditions of line convertible bond
and other debt facilities and other factors.
Withholding tax: On 21 February 2007, the South African Government announced a
proposal to replace the Secondary Tax on Companies with a 10% withholding tax on
dividends and other distributions payable to shareholders. The date for the
implementation of the withholding tax has not been announced. Although this may
reduce the tax payable by the South African operations of the group, thereby
increasing distributable earnings, the withholding tax will generally reduce the
amount of dividends or other distributions received by AngloGold Ashanti
shareholders.
Annual general meeting: Shareholders on the South African register who have
dematerialised their shares in the company (other than those shareholders whose
shareholding is recorded in their own names in the sub-register maintained by
their CSDP) and who wish to attend the annual general meeting in person, will
need to request their CSDP or broker to provide them with the necessary
authority in terms of the custody agreement entered into between them and the
CSDP or broker.
Voting rights: The articles of association provide that every member present at
a meeting in person or, in the case of a body corporate, represented, is
entitled to one vote only on a show of hands. Upon a poll, members present or
any duly appointed proxy shall have one vote for every share held. There are no
limitations on the right of non-South African shareholders to hold or exercise
voting rights attaching to any shares of the company. CDI holders are not
entitled to vote in person at meetings, but may vote by way of proxy. Options
granted in terms of the share incentive scheme do not carry rights to vote.
Change of details: Shareholders are reminded that the onus is on them to keep
the company, through its nominated share registrars, apprised of any change in
their postal address and personal particulars. Similarly, where shareholders
received dividend payments electronically (EFT), they should ensure that the
banking details which the share registrars and/or CSDPs have on file are
correct.
Annual financial statements: Should you wish to receive a printed copy of our
2010 annual financial statements, please request same from the contact persons
listed at the end of this report or on the company`s website.
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: +233 303 772190
Fax: +233 303 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
T T Mboweni (Chairman)
Dr T J Motlatsi (Deputy Chairman)
F B Arisman #
R Gasant
W A Nairn
Prof L W Nkuhlu
F Ohene-Kena +
S M Pityana
* British # American
Australian South African
+ Ghanaian
Officers
Company Secretary: Ms L Eatwell
Investor Relations Contacts
South Africa
Renee Swan
Mobile: +27 79 523 9714
Fax: +27 11 637 6400
E-mail: rswan@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: +233 303 229664
Fax: +233 303 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, the resumption of production at
AngloGold Ashanti`s mines in Ghana, the completion of announced mergers and
acquisitions transactions, AngloGold Ashanti`s liquidity and capital resources,
and expenditure and the outcome and consequences of any litigation proceedings
or environmental issues, 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 including environmental approvals and actions,
fluctuations in gold prices and exchange rates, and business and operational
risk management. For a discussion of certain of these factors, refer to
AngloGold Ashanti`s annual report for the year ended 31 December 2009, which was
distributed to shareholders on 30 March 2010. The company`s annual report on
Form 20-F, was filed with the Securities and Exchange Commission in the United
States on 19 April 2010 and as amended on 18 May 2010. 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.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.
Date: 17/02/2011 07:58:00 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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