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ANG
ANANO
ANG - Anglogold Ashanti Limited - Report for the quarter and nine months ended
30 September 2011
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 for the quarter and nine months ended 30 September 2011
Group results for the quarter and nine months ended September....
- Record adjusted headline earnings (AHE) of $457m, or 118 US cents a share,
up 51% year-on-year.
- Net profit attributable to equity shareholders of $456m.
- Quarterly cash inflow from operations more than doubles to $863m* year-on-
year.
- Quarterly free cash flow of $300m after capex, finance costs, tax and
translation impacts; net debt declines by 28% to $620m.
- AHE and cash inflow from operations for 9 months ended 30 September 2011
above $1bn and $2bn respectively.
- Move to quarterly dividend payments; third-quarter dividend of 90 South
African cents or approximately 11 US cents per share declared.
- Total cash costs of $737/oz, well within guidance; Production marginally up
on previous quarter at 1.092Moz.
* Adjusted for hedge buy-back costs.
Quarter
ended ended ended
Sep Jun Sep
2011 2011 2010
SA rand / Metric
Operating review
Gold
Produced - kg / oz (000) 33,970 33,776 36,129
Price received 1 - R/kg / $/oz 394,799 328,951 (47,750)
Price received excluding
hedge buy-back costs 1 - R/kg / $/oz 394,799 328,951 267,707
Total cash costs - R/kg / $/oz 168,935 153,441 151,007
Total production costs - R/kg / $/oz 211,460 199,541 187,695
Financial review
Adjusted gross profit
(loss) 2 - Rm / $m 5,870 4,268 (8,670)
Adjusted gross profit
excluding
hedge buy-back costs 2 - Rm / $m 5,870 4,268 2,969
Profit attributable to equity
shareholders - Rm / $m 3,304 3,195 443
- cents/share 855 829 120
Adjusted headline earnings
(loss) 3 - Rm / $m 3,310 2,317 (8,389)
- cents/share 857 601 (2,277)
Adjusted headline earnings
excluding hedge buy-back
costs 3 - Rm / $m 3,310 2,317 2,184
- cents/share 857 601 593
Cash flow from operating
activities excluding hedge
buy-back costs - Rm / $m 6,497 4,298 3,238
Capital expenditure - Rm / $m 2,874 2,342 1,855
Nine months
ended ended
Sep Sep
2011 2010
SA rand / Metric
Operating review
Gold
Produced - kg / oz (000) 100,049 104,714
Price received 1 - R/kg / $/oz 345,618 148,314
Price received excluding
hedge buy-back costs 1 - R/kg / $/oz 345,618 259,858
Total cash costs - R/kg / $/oz 160,402 149,953
Total production costs - R/kg / $/oz 203,940 187,282
Financial review
Adjusted gross profit (loss) 2 - Rm / $m 13,602 (4,310)
Adjusted gross profit excluding
hedge buy-back costs 2 - Rm / $m 13,602 7,329
Profit attributable to equity
shareholders - Rm / $m 8,158 233
- cents/share 2,114 63
Adjusted headline earnings
(loss) 3 - Rm / $m 7,043 (6,947)
- cents/share 1,825 (1,890)
Adjusted headline earnings
excluding hedge buy-back
costs 3 - Rm / $m 7,043 3,626
- cents/share 1,825 987
Cash flow from operating
activities excluding hedge
buy-back costs - Rm / $m 14,402 7,527
Capital expenditure - Rm / $m 6,956 4,841
Quarter
ended ended ended
Sep Jun Sep
2011 2011 2010
US dollar / Imperial
Operating review
Gold
Produced - kg / oz (000) 1,092 1,086 1,162
Price received 1 - R/kg / $/oz 1,713 1,510 (239)
Price received excluding
hedge buy-back costs 1 - R/kg / $/oz 1,713 1,510 1,141
Total cash costs - R/kg / $/oz 737 705 643
Total production costs - R/kg / $/oz 922 916 800
Financial review
Adjusted gross profit (loss) 2 - Rm / $m 816 629 (1,229)
Adjusted gross profit excluding
hedge buy-back costs 2 - Rm / $m 816 629 408
Profit attributable to equity
shareholders - Rm / $m 456 470 51
- cents/share 118 122 14
Adjusted headline earnings
(loss) 3 - Rm / $m 457 342 (1,184)
- cents/share 118 89 (321)
Adjusted headline earnings
excluding hedge buy-back
costs 3 - Rm / $m 457 342 303
- cents/share 118 89 82
Cash flow from operating
activities excluding hedge
buy-back costs - Rm / $m 863 635 424
Capital expenditure - Rm / $m 408 346 253
Nine months
ended ended
Sep Sep
2011 2010
US dollar / Imperial
Operating review
Gold
Produced - kg / oz (000) 3,217 3,367
Price received 1 - R/kg / $/oz 1,539 598
Price received excluding
hedge buy-back costs 1 - R/kg / $/oz 1,539 1,086
Total cash costs - R/kg / $/oz 716 627
Total production costs - R/kg / $/oz 910 783
Financial review
Adjusted gross profit (loss) 2 - Rm / $m 1,942 (652)
Adjusted gross profit excluding
hedge buy-back costs 2 - Rm / $m 1,942 986
Profit attributable to equity
shareholders - Rm / $m 1,167 20
- cents/share 302 5
Adjusted headline earnings (loss) 3 - Rm / $m 1,002 (993)
- cents/share 260 (270)
Adjusted headline earnings
excluding hedge buy-back costs 3 - Rm / $m 1,002 494
- cents/share 260 134
Cash flow from operating
activities excluding hedge buy-back costs - Rm / $m 2,011 990
Capital expenditure - Rm / $m 1,002 650
Notes: 1. Refer to note C "Non-GAAP disclosure" for the definition.
2. Refer to note B "Non-GAAP disclosure" for the definition.
3. Refer to note A "Non-GAAP disclosure" for the definition.
$ represents US dollar, unless otherwise stated.
Rounding of figures may result in computational discrepancies.
Operations at a glance
for the quarter ended 30 September 2011
Production Total cash costs
oz (000) % Variance 2 $/oz % Variance 2
SOUTH AFRICA 394 (9) 757 10
Great Noligwa 25 (7) 1,255 17
Kopanang 78 (6) 700 2
Moab Khotsong 71 (5) 715 8
Mponeng 117 (8) 587 4
Savuka 13 8 931 6
TauTona 58 (3) 908 7
Surface Operations 32 (33) 881 50
CONTINENTAL AFRICA 411 9 739 5
Ghana
Iduapriem 48 9 861 (3)
Obuasi 78 (6) 829 13
Guinea
Siguiri - Attributable 85% 56 (15) 949 18
Mali
Morila - Attributable 40% 3 24 (4) 819 (1)
Sadiola - Attributable 41% 3 31 (6) 792 15
Yatela - Attributable 40% 3 8 33 1,548 21
Namibia
Navachab 16 14 1,110 (8)
Tanzania
Geita 149 39 473 7
Non-controlling interests,
exploration and other
AUSTRALASIA 50 (18) 1,570 (2)
Australia
Sunrise Dam 50 (18) 1,568 3
Exploration and other
AMERICAS 238 10 524 8
Argentina
Cerro Vanguardia -
Attributable 92.50% 52 8 296 12
Brazil
AngloGold Ashanti
Mineracao 101 20 554 12
Serra Grande -
Attributable 50% 15 7 919 4
United States of America
Cripple Creek & Victor 69 (1) 561 3
Non-controlling interests,
exploration and other
OTHER
Sub-total 1,092 1 737 5
Equity accounted
investments included above
AngloGold Ashanti
Adjusted
gross profit (loss) 1
$m $m Variance 2
SOUTH AFRICA 290 26
Great Noligwa 6 -
Kopanang 61 13
Moab Khotsong 45 8
Mponeng 113 11
Savuka 11 4
TauTona 28 7
Surface Operations 26 (17)
CONTINENTAL AFRICA 325 81
Ghana
Iduapriem 32 14
Obuasi 47 (2)
Guinea
Siguiri - Attributable 85% 42 (1)
Mali
Morila - Attributable 40% 3 21 5
Sadiola - Attributable 41% 3 27 2
Yatela - Attributable 40% 3 1 -
Namibia
Navachab 7 5
Tanzania
Geita 142 59
Non-controlling interests, exploration
and other 6 (2)
AUSTRALASIA - 10
Australia
Sunrise Dam 1 6
Exploration and other - 5
AMERICAS 252 101
Argentina
Cerro Vanguardia - Attributable 92.50% 64 16
Brazil
AngloGold Ashanti Mineracao 98 51
Serra Grande - Attributable 50% 9 12
United States of America
Cripple Creek & Victor 69 10
Non-controlling interests, exploration
and other 13 13
OTHER (4) (25)
Sub-total 864 194
Equity accounted investments included above (48) (7)
AngloGold Ashanti 816 187
1 Refer to note B "Non-GAAP disclosure" for the definition.
2 Variance September 2011 quarter on June 2011 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
Strong performances from Continental Africa and South America, along with full
exposure to a record gold price and weaker currencies in Brazil and South
Africa drove third quarter earnings and cash flow generation to their highest
levels ever during the third quarter. Adjusted headline earnings* (AHE),
surged by 51% to $457m, or 118 US cents a share in the three months to 30
September, compared with $303m, or 82 US cents the same period last year. The
quarter`s AHE includes a once-off net tax credit of $70m. Compared with the
previous quarter, AHE were 34% higher.
Cash flow generated from operating activities surged to $863m during the
period under review compared with an outflow of $1.1bn a year earlier. Free
cash flow, after all capital expenditure, finance costs and tax, was $300m.
These robust inflows helped further strengthen the group`s statement of
financial position. Net debt (excluding the mandatory convertible bond) was
further reduced by $246m, to $620m at the end of the quarter. Capital
expenditure of $408m was spent during the quarter, taking the year-to-date
expenditure to $1bn.
*Excluding hedge buy-back costs
DIVIDEND
While AngloGold Ashanti has a four-year, internally funded plan targeted at
expanding production by about a million ounces, its enhanced operating and
financial performance has allowed the company the opportunity to further
improve returns to shareholders. Dividends will, with immediate effect, be
paid quarterly rather than half-yearly, offering direct and timeous
participation in the improved financial performance and strong market
fundamentals, while maintaining the ability to both fund capital expenditure
and preserve the company`s investment grade credit rating.
The board of directors is pleased to announce a dividend of 90 South African
cents for the third quarter, equivalent to the dividend paid in the first half
of this year. The company anticipates paying the same dividend again for the
fourth quarter, which will represent a dividend of 270 South African cents for
the year. This is an 86% increase on the South African 145 cent total dividend
payment for all of 2010 and represents a cumulative annual compound growth
rate in dividends since 2008 of 39%.
Looking to 2012, the company will aim to improve the dividend payment yet
again on the back of stronger gold prices after providing for its capital
expenditure requirements.
"Our power to generate earnings and strong cash flow is clear in these
numbers," Chief Executive Officer Mark Cutifani said. "the upward jump in the
dividend demonstrates the fundamental strength of the business and the market,
while maintaining the ability to fund our growth pipeline".
OPERATING RESULTS
Production for the three months to 30 September 2011 was 1.092Moz at a total
cash cost of $737/oz. This compares with guidance of 1.11Moz at $775/oz and
the previous quarter`s production of 1.086Moz at $705/oz. The previous
quarter`s costs received the once-off benefit of higher-grade feed at Geita to
compensate for the SAG mill shutdown, which was not repeated. The third
quarter`s result was bolstered by strong performances at Geita in Tanzania,
Iduapriem in Ghana and from the Americas, where Cerro Vanguardia in Argentina
was once again a standout as the group`s most efficient producer.
Nevertheless, Sunrise Dam`s recovery from flooding in the first half of the
year was again slower than anticipated, as was the ramp-up of production
following the five-day wage-related strike which closed the South African
operations during August. In addition, winter power tariffs, higher payroll
costs, increased royalties and lower by-product credits also contributed to
cost pressure on the South African unit cash costs.
SAFETY
Tragically, three fatalities occurred during the quarter, one each at Mponeng,
Moab Khotsong and Kopanang. These incidents underscore the importance of
ongoing efforts to mitigate workplace risks through Project ONE and its
emphasis on planning and scheduling, as well as more visible and effective
leadership at the operations. Significant strides continue to be made in the
group`s overall safety performance. The fatality injury frequency rate for the
first nine months of this year has improved by 46% over last year`s level,
while for the September quarter, the all injury frequency rate (AIFR) of 9.51
per million hours is the lowest on record. To date this year, the Continental
Africa division improved its AIFR by an impressive 39% over last year`s
figure. Systemic improvement in the safety performance across the group is
becoming entrenched, though there remains much to be done to reach the target
of zero harm.
OPERATING REVIEW
The South African operations produced 394,000oz at a total cash cost of
$757/oz for the three months to 30 September 2011, compared with 431,000oz at
$688/oz the previous quarter. The lower output resulted from the strike and an
increased number of government-imposed safety-related stoppages. Costs
increased due to lower volumes, as well as the winter power tariff, mid-year
wage increases and higher royalty payments resulting from the strong gold
price. By- product contributions also decreased as uranium sales were
partially deferred in anticipation of higher prices toward year-end. At the
West Wits Operations, production at Mponeng, declined 8% to 117,000oz at a
total cash cost of $587/oz, while the adjacent TauTona Mine, having dealt with
increased seismicity during the quarter, produced 3% less than the previous
quarter at 58,000oz, at a total cash cost of $908/oz. At the Vaal River
Operations, production at Great Noligwa, disrupted by safety-related stoppages
and geological constraints, closed 7% below the previous quarter at 25,000oz
with total cash costs rising 17% to $1,255/oz. Moab Khotsong`s production
declined by 5% compared to the previous quarter at 71,000oz, with cost
inflation contained at 8% despite the lower by-product contribution. Kopanang
experienced lower mining values, cutting production by 6% to 78,000oz. Cost
increase was contained to 2% at $700/oz. Surface Operations experienced a 33%
decline in gold production to 32,000oz at $881/oz, following a decrease in
grade in the specific area reclaimed, as well as milling constraints.
The Continental Africa operations produced 411,000oz at a total cash cost of
$739/oz in the third quarter of 2011, compared with 377,000oz at a total cash
cost of $705/oz the previous quarter. At Geita, significant increase in
tonnages following last quarter`s mill shutdown, helped boost production 39%
to 149,000oz at a total cash cost of $473/oz. Iduapriem increased production
by 9% to 48,000oz at a total cash cost of $861/oz, with improved plant
availability and higher tonnage offsetting lower recovered grade. Obuasi saw a
6% drop in production to 78,000oz at a total cash cost of $829/oz, due
principally to lower grades and equipment availability underground. In Mali,
production from Morila and Sadiola was 4% and 6% lower, and as planned at
Navachab, in Namibia, production and costs both improved due to higher grades
and tonnage throughput. Siguiri remains a challenge, with lower-than-
anticipated grades from the Sintroko pit contributing to a 15% drop in output
to 56,000oz at a total cash cost of $949/oz.
The Americas operations produced 238,000oz at a total cash cost of $524/oz in
the third quarter of 2011, compared with 216,000oz at a total cash cost of
$487/oz the previous quarter. Cerro Vanguardia delivered another sterling
performance in Argentina`s difficult inflationary environment, increasing
production by 8% to 52,000oz at $296/oz. Again, Project ONE`s implementation
helped improve efficiencies, particularly with regard to consumables, partly
offsetting the impact of inflation, lower by-product credits and higher
royalty payments. At Brasil Mineracao, higher tonnage and grades boosted
production by 20% to 101,000oz, whilst costs were 12% higher at $554/oz given
continued inflationary impacts, particularly on maintenance costs and payroll,
following the annual salary increase in August. At Serra Grande, higher grades
and tonnages pushed production 7% higher to 15,000oz at $919/oz. At Cripple
Creek & Victor gold production was steady at 69,000oz, while cash costs
increased 3% to $561/oz.
In Australia, Sunrise Dam continued to feel the impact of the flooding which
damaged the pit wall earlier this year. Mining in the open pit remained
suspended while remediation work was undertaken. Production decreased by 18%
to 50,000oz, while recovery work and lower output pushed total cash costs 3%
higher to $1,568/oz.
PROJECTS
AngloGold Ashanti incurred capital expenditure of $408m during the quarter, of
which $141m was spent on growth projects. Of the growth-related capital, $68m
was spent in the Americas, $22m was spent in Continental Africa, $25m in
Australasia and $26m in South Africa.
At the Kibali joint venture, in the Democratic Republic of the Congo, good
progress was made on the relocation of villagers, with a total of 301 new
houses completed in the Kokiza settlement. Construction also commenced on the
Catholic Church complex, roads and other infrastructure. Randgold Resources,
AngloGold Ashanti`s partner and operator of the project, aims to complete the
final feasibility study on the project by month-end. AngloGold Ashanti`s
Business and Technical Development team will review the study in January 2012
before its submission to the board in February.
The optimised feasibility study for the Mongbwalu project, also in the DRC,
will also be submitted to the board for approval in February. The project`s
review panel recommended further work to improve the overall business strategy
together with a recommendation for the project team to obtain approval for the
`Early Works` programme. Cost estimates and the project execution plan is
under review by the project team, with a final review by the Business and
Technical Development team scheduled for December 2011 before board
submission.
At the Corrego do Sitio project, in Brazil, the Concentrate circuit is
operating, the carbon-in-leach circuit is cold commissioned and crushing-
milling-flotation areas handed over to the operating team. The mine ramp-up
phase is also on track, with plant production scheduled by the end of the
year.
The Tropicana Gold Project in Australia continued on budget and schedule, with
first gold production anticipated in the second half of 2013. The principal
design of the majority of engineering and infrastructure works were completed,
the contract was awarded for the construction of the accommodation camp and
good progress continued on construction of the 220km access road.
EXPLORATION
Total exploration expenditure during the third quarter, inclusive of
expenditure at equity accounted joint ventures, was $96m ($35m on brownfield,
$33m on greenfield and $28m on pre-feasibility studies), compared with $82m
the previous quarter ($32m on brownfield, $27m on greenfield and $23m 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.
In Australia, at the Tropicana JV (AngloGold Ashanti 70%, Independence Group
30%), exploration targeted the Swizzler target which lies between the
Tropicana and Havana deposits and the Havana Deeps. Reconnaissance aircore
drilling and RC/diamond drilling of a number of key prospects also continued
on the Tropicana JV tenements. At the wholly- owned Viking project, several
high priority geochemical anomalies were delineated, with drill testing
scheduled for the fourth quarter. At the Gawler JV with Stellar Resources
(AngloGold Ashanti earning 75%), covering the Coronation Bore and Gairdner
projects in South Australia, results of aeromagnetic and ground gravity
surveys will be used to define targets for diamond drilling.
At Sunrise Dam, exploration continued to extend the known mineral resource
underground, and target and follow-up on significant intercepts returned from
the deeper areas below the current workings (Vogue Prospect). The drilling for
the period totalled 18,174m. Early stage exploration work continued on a
number of surface prospects both on and adjacent to the mine.
In the Americas, the focus during the quarter remained on early stage
exploration in Colombia, Canada, the United States, Brazil and Argentina.
In North America, Greenfield exploration activities continued in Utah, Nunavut
and Ontario. In the United States, at Cripple Creek and Victor, a total of
21,685m were drilled. Several Reverse Circulation (RC) holes for the MLE-2
Programme displayed significant ore grade gold mineralisation well below the
2011 WHEX and Grassy Valley Design Pit bottoms. The results from these holes
will help to deepen the current WHEX and Grassy Valley Design pit bottoms.
In Colombia, where the tenement position is about 16,000km2, exploration
programmes were undertaken in five areas: Quebradona, Anaima-Tocha, La
Llanada, Rio Dulce and La Vega. Assay results from the Nuevo Chaquiro prospect
at Quebradona merit further drilling. In addition, 7,649 line km of airborne
geophysics was completed over key projects in the country. At Gramalote, the
brownfields team conducted infill drilling at Gramalote Central and
exploration drilling focused on Monjas East, Monjas West, Trinidad and El
Limon targets with 10,566m drilled. Several significant intercepts were
obtained from the reconnaissance drilling. Soil sampling and condemnation
drilling continued in the Palestina Valley. At La Colosa, drilling progressed
well with 13,967m drilled and 27 boreholes completed. Five rigs are now
operating on site. Very significant intersections continued to be obtained on
the edges of the previously defined system. These will add significantly to
the overall mineralised system.
Work was also undertaken on the Falcao joint venture with Horizonte minerals
in Brazil, with diamond drilling yielding promising results.
At Cerro Vanguardia in Argentina, 14,530m of drilling was completed. Thirteen
veins were drilled with encouraging results in both vein texture encountered
and assay results. Trenching and channel sampling to facilitate drilling
targeting was active on eight different veins.
In the Solomon Islands, exploration continued at the Kele and Mase Joint
Ventures with XDM Resources, where AngloGold Ashanti earned a 51% interest in
both projects. At Mase, 1,168m diamond drilling was undertaken in seven holes,
at four prospects. Hand dug trenching was completed and reconnaissance mapping
carried out in five areas. Ground surveying and mapping was completed for
planned ground geophysical surveys. At Kele, diamond drilling continued with
745m completed in six holes, at three prospects. Mechanical trenching was
completed at one prospect and soil sampling was completed in two areas.
In Sub-Saharan Africa regional exploration programmes were undertaken in
Guinea, the DRC and Gabon. In Gabon, first phase exploratory drilling was
completed on the Ndjole and Mevang joint venture licences. Results include 2m
@ 4.7 g/t Au from 114m, 1m @ 3.42 g/t Au from 115m, 2m @ 1.59g/t Au from 84m,
1.5m @ 4.52g/t Au from 130.5m, 1.5m @ 1.26g/t Au from 128m and 4.5m @ 1.94 g/t
Au (including 1m @ 6.74 g/t Au from 40.5m).
In Guinea, regional greenfields exploration programmes were conducted in
Blocks 2, 3 and 4 and the Corridor Block that cover an area of some 1,600km2.
The main activities included drilling at the Saraya project and the Kounkoun
prospect located in Blocks 2 and 3 respectively. Other activities included
regional ground geophysics programmes and soil sampling on exploration
licences. The assay backlog for samples from Saraya and Kounkoun is being
cleared, with two rigs expected to recommence drilling in the fourth quarter.
At neighbouring Siguiri, a total of 31,874m of brownfields drilling was also
completed during the quarter. RC infill drilling focused on upgrading the
oxide mineral resources in Kozan Central West, with positive results. Fresh
rock RC drilling focused on the Tubani Extension and tested the potential for
gold mineralisation in the fresh rock below the current pit to a depth of
approximately 150m. Fresh rock RCDD drilling focused on the old Kozan and
Sintroko Push Backs pits. This aimed to test fresh rock potential and depth
extent of ore zones below the current pits, as well as to provide valuable
structural information on the mineralisation styles in the fresh rock.
Drilling for metallurgical test work focused on Sokunu, Kozan and Kami. These
samples will be used to determine the optimum metallurgical processing routes
and recoveries for new oxide, transition and fresh ore. Geochemical soil
sampling focused on the southeast of Block 1 to develop the resource pipeline.
In Mali, a total of 27,576m of drilling was completed at Yatela and Sadiola
during the quarter. Substantial sterilisation drilling was undertaken as part
of development activities for both the Sadiola Sulphide Project and Yatela
Gold Mine. Termite mound sampling of 200m X 50m over the Yatela concession has
advanced the geological understanding of the overall Yatela land package and
refined numerous targets adjacent to the current mining operations which will
be aggressively explored in the coming months. A project aimed at providing
detailed alteration information supporting the metallurgical database, as well
as improving the understanding of the Sadiola orebody as a whole commenced
during the quarter.
Spectral scanning of the Sadiola drill core is planned to achieve 70,000m by
early 2012.
In the DRC, drilling, trenching and soil sampling on regional grids at the
5,866 km2 AGK Kilo JV project, covering seven prospects. Assay results were
received for the Bakombe trenches with an encouraging intercept of 45m @ 1.5
g/t Au, including 7m @ 3.0 g/t Au and 6m @ 2.1 g/t Au. Assay results from
trenches in the Lodjo area include significant intercepts of 25m @ 2.26g/t Au
and 20m @ 2.8g/t Au.
Progress was also made by the brownfields team in the Mongbwalu project area,
where about 1,212m of drilling was carried out over the Adidi and Kanga
Mineral Resource. Mine dewatering and metallurgical test work was undertaken
in support of the feasibility study.
At Kibali, 13,063m of drilling focused on feasibility work and underground
infrastructure. Exploration drilling commenced on a number of high priority
satellite deposits. Exploration drilling was undertaken on the Kombokolo
deposit, and at Agbarabo, which was formerly the highest grade underground
mine on the property reporting grades of more than 30g/t Au.
Greenfields exploration in the Middle East & North Africa region is being
undertaken by the Thani Ashanti strategic alliance. Exploration involved
diamond drilling at the Hutite prospect, located on the Hodine licence in
Egypt. A total of 2,498m of diamond drilling was completed during the quarter.
All significant results are from the Central Domain which stretches for
roughly 1km and remains open along strike and at depth. Three rigs will drill
the Hodine licence during the fourth quarter. Significant results at Hutite
include 7m @ 7.05 g/t Au from 84m and 9m @ 1.35 g/t Au from 108m in HUD016, 3m
@ 7.23 g/t Au from 178m and 8m @ 18.57 g/t Au from 203m in HUD017, and 5m @
3.0 g/t Au from 159m in HUD020.
The Afar JV with Stratex International, also yielded significant results at
the Megenta project in Ethiopia. These include, 3.3m @ 4.45 g/t Au from 92m in
Hole 12 (including 0.7m @ 19.5 g/t Au) and 44m @ 0.67 g/t Au from 68m in Hole
10 (including 0.3m @ 8.27 g/t Au & 3m @ 3.56 g/t Au).
In Ghana, the Brownfields team at Obuasi achieved 633m at its Below 50 Level
exploration programme. The team also commenced a Mineral Resource infill
programme at the Anyankyerim deposit (1,084m), the results of which will
inform a feasibility study for the potential reopening of the Obuasi Oxide
Treatment Plant.
At Geita, in Tanzania, 20,691m of drilling was completed during the quarter,
focused on Mineral Resource infill drilling around the mining operations and
more regional exploration to support the growth strategy. Resource upgrade
drilling was carried out at Nyankanga cut 7 & 8, as well as the Geita Hill W2
deposits.
OUTLOOK
Given the increased safety stoppages in South Africa, the ongoing water
shortages at CC&V and the slower ramp up at Sunrise Dam, full year 2011
production is now estimated to be around 4.33Moz. Total cash costs are
estimated at between $735-$745/oz on the basis of weaker local operating
currency assumptions for the year (R7.10/$, A$1.03/$, BRL1.66/$ and AP4.12/$)
and fuel at $111/barrel. This translates to a fourth quarter estimated
production of approximately 1.11Moz at a total cash cost of approximately
$790/oz, this assumes an exchange rate of R7.50/$, A$1.00/$, BRL1.75/$ and
AP4.25/$ and fuel at $105/barrel. The increase in fourth quarter total cash
costs are driven mainly by deferred stripping and inventory charges.
As in prior years, the fourth quarter numbers will be distorted by year-end
accounting adjustments such as re- assessment of useful asset lives,
rehabilitation, direct and indirect tax, and inventory provisions.
Review of the Gold Market
Gold price movement and investment markets
Gold price data
After rising only 4.5% from January to June, the third quarter saw a 30%
advance in the gold price, which peaked at a record $1,920/oz. The quarter was
also marked by a sharp increase in gold price volatility, reflecting investor
nervousness and uncertainty. Fallout from the U.S. federal debt ceiling
debacle was exacerbated when Standard & Poor`s downgraded the country`s
sovereign rating, citing political risk and a rising debt burden. Against this
backdrop, the European debt crisis accelerated as EU member states were
indecisive about increasing the European Financial Stability Facility and
restructuring the sovereign debt obligations of some member states. The latter
brought into focus the exposure of the European banking sector to sovereign
defaults and their concomitant systemic risk. Recent data show that hope of
recovery in the U.S. is precarious, with some commentators raising the
likelihood of another recession. This slew of bad news buffeted the commodity
complex with the gold price a casualty as many investors preferred to move
into cash.
Investment demand
The third quarter`s economic and debt woes reignited investor interest in
ETFs. By the time the US sovereign rating downgrade was announced, combined
holdings of the major ETFs rose 6% to 72Mozs from the start of the quarter.
Subsequent additions were more modest and remained positive over the quarter.
In India, the ETF market continued to show steady growth and potential as a
promising long-term source of gold demand. The COMEX positioning was more
volatile over the period, increasing from 24Mozs net long at the start of July
to a peak of almost 34Moz around early August, when the U.S. debt rating was
downgraded. Significant liquidation, however, occurred during the last week of
September, taking the net long position down to 21.4Moz at quarter end. Bar
and coin demand in the US remains firm. China on the other hand continued to
exhibit seemingly insatiable demand for imported kilobars, as the market
continued to expand. Jewellery manufacturers started producing investment bars
for sale in retail outlets across China. In India, unprecedented price
volatility dampened investment demand. China also responded negatively to
price volatility but still showed growth, although not as high as in the
second quarter.
Official sector
The official sector continued to be prominent on the demand side during the
quarter. Thailand, Bolivia, Tajikistan and Russia were all reported to have
added to their reserves during August. One market analyst suggested that a
higher gold price does not necessarily impede central bank buying,
particularly for those whose gold allocation is considered to be relatively
low. The end of the quarter saw the conclusion of the second year of the
current Central Bank Agreement and at the time of writing, no third-quarter
sales under this agreement could be confirmed. Sales for the second year
totalled just over 53 tonnes, 52 of which came from the IMF.
Jewellery sales
After seven consecutive quarters of growth, the Indian market experienced its
first contraction in the third quarter. This is traditionally a slower period
as the trade sector starts to stock up for Diwali. This year, however, rupee
gold-price volatility caused many to defer purchases, with some retailers`
stock levels at half of what they were at the same time last year. It is
estimated that the quarter under review will see a 20% to 25% year-on-year
fall in demand. In China, notwithstanding volatility, the jewellery market was
estimated to have grown some 5-8%. August and September saw strong sales as
the market moved into the peak sales time around the National Day holiday.
Manufacturers experienced strong sales during the Shenzhen Jewellery Fair,
with sales during that week estimated at some 40-50 tonnes. The trade remained
upbeat and sought to manage gold price volatility by cautiously timing
purchases and managing stock levels accordingly. A number of Chinese retailers
have launched franchise operations to expand their reach. Gold price
volatility also dampened demand in the U.S. jewellery sector but the quarter
under review registered modest growth. The bifurcation of the market into high-
and low-end continued, with silver continuing to dominate the lower end while
higher-end gold retailers still enjoyed firm sales despite the economic
malaise.
Group income statement
Quarter Quarter
ended ended
September June
2011 2011
SA Rand million Notes Reviewed Reviewed
Revenue 2 13,428 11,547
Gold income 12,850 10,680
Cost of sales 3 (6,980) (6,412)
Loss on non-hedge derivatives and other
commodity contracts 4 (5) (14)
Gross profit 5,865 4,254
Corporate administration, marketing and other
expenses (488) (449)
Exploration costs (541) (429)
Other operating expenses 5 (84) (53)
Special items 6 (97) 197
Operating profit 4,655 3,520
Interest received 75 73
Exchange gain (loss) 123 (34)
Fair value adjustment on option component of
convertible bonds 88 499
Finance costs and unwinding of obligations 7 (345) (342)
Fair value adjustment on mandatory convertible
bonds 66 442
Share of equity accounted investments` profit 175 139
Profit before taxation 4,837 4,297
Taxation 8 (1,465) (1,013)
Profit for the period 3,372 3,284
Allocated as follows:
Equity shareholders 3,304 3,195
Non-controlling interests 68 89
3,372 3,284
Basic earnings per ordinary share (cents) 1 855 829
Diluted earnings per ordinary share (cents) 2 810 694
Quarter Nine months Nine months
ended ended ended
September September September
2010 2011 2010
SA Rand million Unaudited Reviewed Unaudited
Revenue 10,668 35,377 29,040
Gold income 10,372 33,464 28,220
Cost of sales (6,659) (19,863) (18,819)
Loss on non-hedge derivatives and
other commodity contracts (1,041) (7) (4,607)
Gross profit 2,672 13,594 4,794
Corporate administration, marketing
and other expenses (376) (1,401) (1,070)
Exploration costs (440) (1,367) (1,108)
Other operating expenses (50) (225) (122)
Special items (424) 111 (686)
Operating profit 1,382 10,712 1,808
Interest received 58 203 192
Exchange gain (loss) (113) 92 (75)
Fair value adjustment on option
component of
convertible bonds (166) 677 319
Finance costs and unwinding of
obligations (285) (1,028) (846)
Fair value adjustment on mandatory
convertible bonds (160) 647 (160)
Share of equity accounted
investments` profit 151 396 403
Profit before taxation 867 11,699 1,641
Taxation (318) (3,342) (1,140)
Profit for the period 549 8,357 501
Allocated as follows:
Equity shareholders 443 8,158 233
Non-controlling interests 106 199 268
549 8,357 501
Basic earnings per ordinary share
(cents) 1 120 2,114 63
Diluted earnings per ordinary share
(cents) 2 120 1,897 63
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.
The reviewed financial statements for the quarter ended on 30 September 2011
have been prepared by the corporate accounting staff of AngloGold Ashanti
Limited headed by Mr John Edwin Staples, the Group`s Chief Financial
Accounting Officer. This process was supervised by Mr Srinivasan
Venkatakrishnan, the Group`s Chief Financial Officer. These financial
statements were reviewed (but not audited) by Ernst & Young Inc, the Group`s
statutory auditors and approved by the Board of AngloGold Ashanti Limited.
Ernst & Young Inc issued an unmodified review report which can be inspected at
the registered offices of AngloGold Ashanti Limited.
Group income statement
Quarter Quarter
ended ended
September June
2011 2011
US Dollar million Notes Reviewed Reviewed
Revenue 2 1,873 1,704
Gold income 1,793 1,576
Cost of sales 3 (977) (947)
Loss on non-hedge derivatives and other
commodity contracts 4 (1) (2)
Gross profit 815 627
Corporate administration, marketing and other
expenses (67) (66)
Exploration costs (76) (63)
Other operating expenses 5 (11) (8)
Special items 6 (13) 29
Operating profit 648 519
Interest received 10 11
Exchange gain (loss) 15 (6)
Fair value adjustment on option component of
convertible bonds 11 73
Finance costs and unwinding of obligations 7 (48) (50)
Fair value adjustment on mandatory convertible
bonds 9 64
Share of equity accounted investments` profit 24 21
Profit before taxation 669 632
Taxation 8 (204) (149)
Profit for the period 465 483
Allocated as follows:
Equity shareholders 456 470
Non-controlling interests 9 13
465 483
Basic earnings per ordinary share (cents) 1 118 122
Diluted earnings per ordinary share (cents) 2 112 102
Quarter Nine months Nine months
ended ended ended
September September September
2010 2011 2010
US Dollar million Unaudited Reviewed Unaudited
Revenue 1,461 5,066 3,901
Gold income 1,420 4,791 3,791
Cost of sales (911) (2,849) (2,529)
Loss on non-hedge derivatives and
other commodity contracts (152) (1) (625)
Gross profit 357 1,941 637
Corporate administration, marketing
and other expenses (52) (201) (144)
Exploration costs (60) (196) (149)
Other operating expenses (7) (32) (16)
Special items (60) 18 (95)
Operating profit 178 1,530 233
Interest received 8 29 26
Exchange gain (loss) (16) 12 (11)
Fair value adjustment on option
component of convertible bonds (24) 98 40
Finance costs and unwinding of
obligations (39) (148) (114)
Fair value adjustment on mandatory
convertible bonds (22) 95 (22)
Share of equity accounted
investments` profit 21 57 54
Profit before taxation 106 1,673 206
Taxation (41) (477) (149)
Profit for the period 65 1,196 57
Allocated as follows:
Equity shareholders 51 1,167 20
Non-controlling interests 14 29 37
65 1,196 57
Basic earnings per ordinary share
(cents) 1 14 302 5
Diluted earnings per ordinary share
(cents) 2 14 271 5
1 Calculated on the basic weighted average number of ordinary shares.
2 Calculated on the diluted weighted average number of ordinary shares.
Rounding of figures may result in computational discrepancies.
Group statement of comprehensive income
Quarter Quarter Quarter
ended ended ended
September June September
2011 2011 2010
SA Rand million Reviewed Reviewed Unaudited
Profit for the period 3,372 3,284 549
Exchange differences on translation of
foreign operations 3,754 23 (1,100)
Share of equity accounted investments`
other comprehensive (expense) income - (3) 2
Net loss on cash flow hedges removed from
equity and reported in gold income - - -
Realised gain on hedges of capital items - 1 -
Deferred taxation thereon - (1) (1)
- - (1)
Net (loss) gain on available-for-sale
financial assets (319) (189) 43
Release on disposal and impairment of
available-for-sale financial assets 126 16 -
Deferred taxation thereon (82) - -
Other comprehensive income (expense) (275) (173) 43
for the period net of tax 3,479 (153) (1,056)
Total comprehensive income (expense)
for the period net of tax 6,851 3,131 (507)
Allocated as follows:
Equity shareholders 6,783 3,042 (613)
Non-controlling interests 68 89 106
6,851 3,131 (507)
Nine months Nine months
ended ended
September September
2011 2010
SA Rand million Reviewed Unaudited
Profit for the period 8,357 501
Exchange differences on translation of foreign
operations 4,251 (1,007)
Share of equity accounted investments` other
comprehensive (expense) income (5) (2)
Net loss on cash flow hedges removed from
equity and reported in gold income - 279
Realised gain on hedges of capital items 2 2
Deferred taxation thereon (1) (99)
1 182
Net (loss) gain on available-for-sale financial assets (519) 142
Release on disposal and impairment of
available-for-sale financial assets 142 (41)
Deferred taxation thereon (82) 13
Other comprehensive income (expense) (459) 114
for the period net of tax 3,788 (713)
Total comprehensive income (expense)
for the period net of tax 12,145 (212)
Allocated as follows:
Equity shareholders 11,946 (480)
Non-controlling interests 199 268
12,145 (212)
Rounding of figures may result in computational discrepancies.
Group statement of comprehensive income
Quarter Quarter Quarter
ended ended ended
September June September
2011 2011 2010
US Dollar million Reviewed Reviewed Unaudited
Profit for the period 465 483 65
Exchange differences on translation of
foreign operations (389) 25 151
Share of equity accounted investments`
other comprehensive (expense) income - (1) 1
Net loss on cash flow hedges removed from
equity and reported in gold income - - -
Realised gain on hedges of capital items - - -
Deferred taxation thereon - - -
- - -
Net (loss) gain on available-for-sale
financial assets (42) (27) 5
Release on disposal and impairment of
available-for-sale financial assets 17 2 -
Deferred taxation thereon (11) - -
(36) (25) 5
Other comprehensive (expense) income
for the period net of tax (425) (1) 157
Total comprehensive income
for the period net of tax 40 482 222
Allocated as follows:
Equity shareholders 31 469 208
Non-controlling interests 9 13 14
40 482 222
Nine months Nine months
ended ended
September September
2011 2010
US Dollar million Reviewed Unaudited
Profit for the period 1,196 57
Exchange differences on translation of foreign
operations (412) 90
Share of equity accounted investments` other
comprehensive (expense) income (1) -
Net loss on cash flow hedges removed from
equity and reported in gold income - 38
Realised gain on hedges of capital items - -
Deferred taxation thereon - (13)
- 25
Net (loss) gain on available-for-sale financial assets (71) 19
Release on disposal and impairment of
available-for-sale financial assets 19 (6)
Deferred taxation thereon (11) 2
(63) 15
Other comprehensive (expense) income
for the period net of tax (476) 130
Total comprehensive income
for the period net of tax 720 187
Allocated as follows:
Equity shareholders 691 150
Non-controlling interests 29 37
720 187
Rounding of figures may result in computational discrepancies.
Group statement of financial position
As at As at
September June
2011 2011
SA Rand million Note Reviewed Reviewed
ASSETS
Non-current assets
Tangible assets 48,991 42,256
Intangible assets 1,547 1,357
Investments in associates and equity accounted
joint ventures 5,613 4,451
Other investments 1,563 1,521
Inventories 3,304 2,820
Trade and other receivables 942 1,060
Derivatives - -
Deferred taxation 557 142
Cash restricted for use 179 172
Other non-current assets 76 68
62,772 53,847
Current assets
Inventories 7,778 6,295
Trade and other receivables 2,257 1,923
Derivatives - -
Current portion of other non-current assets 10 23
Cash restricted for use 304 207
Cash and cash equivalents 8,717 5,656
19,066 14,104
Non-current assets held for sale 12 12
19,078 14,116
TOTAL ASSETS 81,850 67,963
EQUITY AND LIABILITIES
Share capital and premium 11 45,903 45,824
Retained earnings and other reserves (8,243) (14,500)
Non-controlling interests 1,086 923
Total equity 38,746 32,247
Non-current liabilities
Borrowings 19,778 16,514
Environmental rehabilitation and other
provisions 4,845 4,294
Provision for pension and post-retirement
benefits 1,326 1,274
Trade, other payables and deferred income 133 131
Derivatives 636 596
Deferred taxation 8,519 7,073
35,237 29,882
Current liabilities
Current portion of borrowings 382 204
Trade, other payables and deferred income 5,769 4,732
Derivatives - -
Taxation 1,716 898
7,867 5,834
Non-current liabilities held for sale - -
7,867 5,834
Total liabilities 43,104 35,716
TOTAL EQUITY AND LIABILITIES 81,850 67,963
As at As at
December September
2010 2010
SA Rand million Audited Unaudited
ASSETS
Non-current assets
Tangible assets 40,600 41,489
Intangible assets 1,277 1,296
Investments in associates and equity accounted joint
ventures 4,087 4,329
Other investments 1,555 1,627
Inventories 2,268 2,268
Trade and other receivables 1,000 994
Derivatives - 8
Deferred taxation 131 88
Cash restricted for use 214 214
Other non-current assets 59 92
51,191 52,405
Current assets
Inventories 5,848 5,860
Trade and other receivables 1,625 1,588
Derivatives 6 453
Current portion of other non-current assets 4 2
Cash restricted for use 69 84
Cash and cash equivalents 3,776 9,313
11,328 17,300
Non-current assets held for sale 110 114
11,438 17,414
TOTAL ASSETS 62,629 69,819
EQUITY AND LIABILITIES
Share capital and premium 45,678 45,598
Retained earnings and other reserves (19,470) (19,159)
Non-controlling interests 815 916
Total equity 27,023 27,355
Non-current liabilities
Borrowings 16,877 17,363
Environmental rehabilitation and other provisions 3,873 3,332
Provision for pension and post-retirement benefits 1,258 1,187
Trade, other payables and deferred income 110 119
Derivatives 1,158 947
Deferred taxation 5,910 5,776
29,186 28,724
Current liabilities
Current portion of borrowings 886 1,864
Trade, other payables and deferred income 4,630 4,061
Derivatives - 7,316
Taxation 882 499
6,398 13,740
Non-current liabilities held for sale 22 -
6,420 13,740
Total liabilities 35,606 42,464
TOTAL EQUITY AND LIABILITIES 62,629 69,819
Rounding of figures may result in computational discrepancies.
Group statement of financial position
As at As at
September June
2011 2011
US Dollar million Note Reviewed Reviewed
ASSETS
Non-current assets
Tangible assets 6,042 6,271
Intangible assets 191 201
Investments in associates and equity accounted
joint ventures 692 661
Other investments 193 226
Inventories 407 419
Trade and other receivables 116 157
Derivatives - -
Deferred taxation 69 21
Cash restricted for use 22 25
Other non-current assets 9 10
7,741 7,991
Current assets
Inventories 959 934
Trade and other receivables 279 286
Derivatives - -
Current portion of other non-current assets 1 3
Cash restricted for use 38 31
Cash and cash equivalents 1,075 839
2,352 2,093
Non-current assets held for sale 1 2
2,353 2,095
TOTAL ASSETS 10,094 10,086
EQUITY AND LIABILITIES
Share capital and premium 11 6,660 6,648
Retained earnings and other reserves (2,015) (2,000)
Non-controlling interests 133 137
Total equity 4,778 4,785
Non-current liabilities
Borrowings 2,439 2,451
Environmental rehabilitation and other
provisions 597 637
Provision for pension and post-retirement
benefits 164 189
Trade, other payables and deferred income 16 20
Derivatives 78 88
Deferred taxation 1,051 1,050
4,345 4,435
Current liabilities
Current portion of borrowings 47 30
Trade, other payables and deferred income 712 703
Derivatives - -
Taxation 212 133
971 866
Non-current liabilities held for sale - -
971 866
Total liabilities 5,316 5,301
TOTAL EQUITY AND LIABILITIES 10,094 10,086
As at As at
December September
2010 2010
US Dollar million Audited Unaudited
ASSETS
Non-current assets
Tangible assets 6,180 5,961
Intangible assets 194 186
Investments in associates and equity accounted joint
ventures 622 622
Other investments 237 234
Inventories 345 326
Trade and other receivables 152 143
Derivatives - 1
Deferred taxation 20 13
Cash restricted for use 33 31
Other non-current assets 9 13
7,792 7,530
Current assets
Inventories 890 842
Trade and other receivables 247 228
Derivatives 1 65
Current portion of other non-current assets 1 -
Cash restricted for use 10 12
Cash and cash equivalents 575 1,338
1,724 2,485
Non-current assets held for sale 16 17
1,740 2,502
TOTAL ASSETS 9,532 10,032
EQUITY AND LIABILITIES
Share capital and premium 6,627 6,615
Retained earnings and other reserves (2,638) (2,817)
Non-controlling interests 124 132
Total equity 4,113 3,930
Non-current liabilities
Borrowings 2,569 2,495
Environmental rehabilitation and other provisions 589 479
Provision for pension and post-retirement benefits 191 170
Trade, other payables and deferred income 17 17
Derivatives 176 136
Deferred taxation 900 830
4,442 4,127
Current liabilities
Current portion of borrowings 135 268
Trade, other payables and deferred income 705 584
Derivatives - 1,051
Taxation 134 72
974 1,975
Non-current liabilities held for sale 3 -
977 1,975
Total liabilities 5,419 6,102
TOTAL EQUITY AND LIABILITIES 9,532 10,032
Rounding of figures may result in computational discrepancies.
Group statement of cash flows
Quarter Quarter Quarter
ended ended ended
September June September
2011 2011 2010
SA Rand million Reviewed Reviewed Unaudited
Cash flows from operating activities
Receipts from customers 13,336 11,127 10,566
Payments to suppliers and employees (6,753) (6,286) (7,105)
Cash generated from operations 6,583 4,841 3,461
Dividends received from equity accounted
investments 333 94 116
Taxation refund 8 492 -
Taxation paid (427) (1,129) (339)
Cash utilised for hedge buy-back costs - - (11,021)
Net cash inflow (outflow) from operating
activities 6,497 4,298 (7,783)
Cash flows from investing activities
Capital expenditure (2,739) (2,186) (1,771)
Proceeds from disposal of tangible assets 26 45 468
Other investments acquired (515) (209) (432)
Investment in associates and equity
accounted joint ventures (222) (171) (48)
Proceeds from disposal of associate - - -
Loans advanced to associates and equity
accounted joint ventures (78) (16) -
Proceeds from disposal of subsidiary - - -
Cash in subsidiary disposed - - -
Proceeds from disposal of investments 266 186 280
Expenditure on intangible assets (49) - -
(Increase) decrease in cash restricted
for use (65) (123) 142
Interest received 79 68 57
Loans advanced - - 4
Repayment of loans advanced 16 4 -
Net cash outflow from investing activities (3,281) (2,402) (1,300)
Cash flows from financing activities
Proceeds from issue of share capital 16 2 5,596
Share issue expenses - (2) (113)
Proceeds from borrowings 681 39 7,139
Repayment of borrowings (792) (21) (21)
Finance costs paid (105) (386) (46)
Mandatory convertible bond transaction costs - - (155)
Dividends paid (368) (72) (264)
Net cash (outflow) inflow from financing
activities (568) (440) 12,136
Net increase in cash and cash equivalents 2,648 1,456 3,053
Translation 413 13 (347)
Cash and cash equivalents at beginning of
period 5,656 4,187 6,607
Cash and cash equivalents at end of period 8,717 5,656 9,313
Cash generated from operations
Profit before taxation 4,837 4,297 867
Adjusted for:
Movement on non-hedge derivatives and
other commodity contracts 5 14 241
Amortisation of tangible assets 1,374 1,274 1,240
Finance costs and unwinding of obligations 345 342 285
Environmental, rehabilitation and other
expenditure (38) 237 53
Special items 174 93 542
Amortisation of intangible assets 4 4 4
Deferred stripping - 40 237
Fair value adjustment on option component
of convertible bonds (88) (499) 166
Fair value adjustment on mandatory
convertible bonds (66) (442) 160
Interest received (75) (73) (58)
Share of equity accounted investments`
profit (175) (139) (151)
Other non-cash movements (38) 94 88
Movements in working capital 324 (401) (213)
6,583 4,841 3,461
Movements in working capital
(Increase) decrease in inventories (1,960) (587) 306
Decrease (increase) in trade and other
receivables 196 (91) (80)
Increase (decrease) in trade and other
payables 2,088 277 (439)
324 (401) (213)
Nine months Nine months
ended ended
September September
2011 2010
SA Rand million Reviewed Unaudited
Cash flows from operating activities
Receipts from customers 34,586 28,762
Payments to suppliers and employees (19,635) (20,737)
Cash generated from operations 14,951 8,025
Dividends received from equity accounted
investments 629 721
Taxation refund 657 -
Taxation paid (1,835) (1,219)
Cash utilised for hedge buy-back costs - (11,021)
Net cash inflow (outflow) from operating activities 14,402 (3,494)
Cash flows from investing activities
Capital expenditure (6,560) (4,638)
Proceeds from disposal of tangible assets 84 488
Other investments acquired (939) (680)
Investment in associates and equity accounted
joint ventures (560) (219)
Proceeds from disposal of associate - 4
Loans advanced to associates and equity accounted
joint ventures (94) (22)
Proceeds from disposal of subsidiary 62 -
Cash in subsidiary disposed (77) -
Proceeds from disposal of investments 557 461
Expenditure on intangible assets (49) -
(Increase) decrease in cash restricted for use (157) 174
Interest received 201 173
Loans advanced - (33)
Repayment of loans advanced 20 1
Net cash outflow from investing activities (7,512) (4,291)
Cash flows from financing activities
Proceeds from issue of share capital 23 5,625
Share issue expenses (2) (113)
Proceeds from borrowings 721 14,786
Repayment of borrowings (1,893) (9,926)
Finance costs paid (613) (422)
Mandatory convertible bond transaction costs - (155)
Dividends paid (747) (707)
Net cash (outflow) inflow from financing activities (2,511) 9,088
Net increase in cash and cash equivalents 4,379 1,303
Translation 489 (166)
Cash and cash equivalents at beginning of period 3,849 8,176
Cash and cash equivalents at end of period 8,717 9,313
Cash generated from operations
Profit before taxation 11,699 1,641
Adjusted for:
Movement on non-hedge derivatives and other
commodity contracts 7 2,448
Amortisation of tangible assets 3,942 3,680
Finance costs and unwinding of obligations 1,028 846
Environmental, rehabilitation and other expenditure 200 66
Special items 313 796
Amortisation of intangible assets 12 11
Deferred stripping 181 765
Fair value adjustment on option component of
convertible bonds (677) (319)
Fair value adjustment on mandatory convertible bonds (647) 160
Interest received (203) (192)
Share of equity accounted investments` profit (396) (403)
Other non-cash movements 100 118
Movements in working capital (608) (1,592)
14,951 8,025
Movements in working capital
(Increase) decrease in inventories (2,902) (565)
Decrease (increase) in trade and other receivables (392) (582)
Increase (decrease) in trade and other payables 2,686 (445)
(608) (1,592)
Rounding of figures may result in computational discrepancies.
Group statement of cash flows
Quarter Quarter Quarter
ended ended ended
September June September
2011 2011 2010
US Dollar million Reviewed Reviewed Unaudited
Cash flows from operating activities
Receipts from customers 1,875 1,641 1,441
Payments to suppliers and employees (988) (926) (995)
Cash generated from operations 887 715 446
Dividends received from equity accounted
investments 34 14 25
Taxation refund 1 73 -
Taxation paid (59) (167) (47)
Cash utilised for hedge buy-back costs - - (1,550)
Net cash inflow (outflow) from operating
activities 863 635 (1,126)
Cash flows from investing activities
Capital expenditure (382) (323) (242)
Proceeds from disposal of tangible assets 4 7 64
Other investments acquired (74) (31) (58)
Investment in associates and equity
accounted joint ventures (31) (25) (6)
Proceeds from disposal of associate - - -
Loans advanced to associates and equity
accounted joint ventures (10) (2) -
Proceeds from disposal of subsidiary - - -
Cash in subsidiary disposed - - -
Proceeds from disposal of investments 37 27 38
Expenditure on intangible assets (6) - -
(Increase) decrease in cash restricted
for use (9) (18) 19
Interest received 11 10 8
Loans advanced - - -
Repayment of loans advanced 2 1 -
Net cash outflow from investing activities (458) (354) (177)
Cash flows from financing activities
Proceeds from issue of share capital 2 - 790
Share issue expenses - - (16)
Proceeds from borrowings 101 6 1,011
Repayment of borrowings (104) (3) (3)
Finance costs paid (14) (57) (8)
Mandatory convertible bond transaction costs - - (22)
Dividends paid (50) (11) (37)
Net cash (outflow) inflow from financing
activities (65) (65) 1,715
Net increase in cash and cash equivalents 340 216 412
Translation (104) 4 60
Cash and cash equivalents at beginning of
period 839 619 866
Cash and cash equivalents at end of period 1,075 839 1,338
Cash generated from operations
Profit before taxation 669 632 106
Adjusted for:
Movement on non-hedge derivatives and
other commodity contracts 1 2 43
Amortisation of tangible assets 192 188 170
Finance costs and unwinding of obligations 48 50 39
Environmental, rehabilitation and other
expenditure (6) 35 8
Special items 23 14 76
Amortisation of intangible assets 1 1 -
Deferred stripping (1) 6 32
Fair value adjustment on option
component of convertible bonds (11) (73) 24
Fair value adjustment on mandatory
convertible bonds (9) (64) 22
Interest received (10) (11) (8)
Share of equity accounted investments` profit (24) (21) (21)
Other non-cash movements (4) 14 13
Movements in working capital 18 (58) (58)
887 715 446
Movements in working capital
Increase in inventories (15) (92) (63)
Decrease (increase) in trade and other
receivables 73 (15) (34)
(Decrease) increase in trade and other
payables (40) 49 39
18 (58) (58)
Nine months Nine months
ended ended
September September
2011 2010
US Dollar million Reviewed Unaudited
Cash flows from operating activities
Receipts from customers 4,967 3,859
Payments to suppliers and employees (2,864) (2,809)
Cash generated from operations 2,103 1,050
Dividends received from equity accounted investments 78 104
Taxation refund 96 -
Taxation paid (266) (164)
Cash utilised for hedge buy-back costs - (1,550)
Net cash inflow (outflow) from operating activities 2,011 (560)
Cash flows from investing activities
Capital expenditure (939) (623)
Proceeds from disposal of tangible assets 12 67
Other investments acquired (135) (91)
Investment in associates and equity accounted
joint ventures (80) (29)
Proceeds from disposal of associate - -
Loans advanced to associates and equity accounted
joint ventures (13) (3)
Proceeds from disposal of subsidiary 9 -
Cash in subsidiary disposed (11) -
Proceeds from disposal of investments 79 62
Expenditure on intangible assets (6) -
(Increase) decrease in cash restricted for use (22) 23
Interest received 29 23
Loans advanced - (4)
Repayment of loans advanced 3 -
Net cash outflow from investing activities (1,074) (575)
Cash flows from financing activities
Proceeds from issue of share capital 3 793
Share issue expenses - (16)
Proceeds from borrowings 106 2,040
Repayment of borrowings (259) (1,318)
Finance costs paid (89) (57)
Mandatory convertible bond transaction costs - (22)
Dividends paid (103) (96)
Net cash (outflow) inflow from financing activities (342) 1,324
Net increase in cash and cash equivalents 595 189
Translation (106) 49
Cash and cash equivalents at beginning of period 586 1,100
Cash and cash equivalents at end of period 1,075 1,338
Cash generated from operations
Profit before taxation 1,673 206
Adjusted for:
Movement on non-hedge derivatives and other
commodity contracts 1 336
Amortisation of tangible assets 565 494
Finance costs and unwinding of obligations 148 114
Environmental, rehabilitation and other expenditure 29 9
Special items 44 110
Amortisation of intangible assets 2 1
Deferred stripping 26 103
Fair value adjustment on option component of
convertible bonds (98) (40)
Fair value adjustment on mandatory convertible bonds (95) 22
Interest received (29) (26)
Share of equity accounted investments` profit (57) (54)
Other non-cash movements 15 17
Movements in working capital (121) (242)
2,103 1,050
Movements in working capital
Increase in inventories (123) (151)
Decrease (increase) in trade and other receivables (8) (95)
(Decrease) increase in trade and other payables 10 4
(121) (242)
Rounding of figures may result in computational discrepancies.
Group statement of changes in equity
Equity holders of the parent
Share Cash
capital Other flow
and capital Retained hedge
SA Rand million premium reserves earnings reserve
Balance at 31 December 2009 39,834 1,194 (25,739) (174)
Profit for the period 233
Other comprehensive (expense)
income (2) 182
Total comprehensive (expense)
income - (2) 233 182
Shares issued 5,764
Share-based payment for share
awards
net of exercised 45
Dividends paid (492)
Dividends of subsidiaries
Transfers to other reserves 25 (25)
Translation (15) 89 1
Balance at 30 September 2010 45,598 1,247 (25,909) (16)
Balance at 31 December 2010 45,678 1,275 (25,437) (15)
Profit for the period 8,158
Other comprehensive (expense)
income (5) 1
Total comprehensive (expense)
income - (5) 8,158 1
Shares issued 227
Share issue expenses (2)
Share-based payment for share
awards
net of exercised 91
Dividends paid (651)
Dividends of subsidiaries
Translation 60 (275) (1)
Balance at 30 September 2011 45,903 1,421 (18,205) (15)
US Dollar million
Balance at 31 December 2009 5,805 161 (2,744) (23)
Profit for the period 20
Other comprehensive income 25
Total comprehensive income - - 20 25
Shares issued 811
Share-based payment for share
awards net of exercised 6
Dividends paid (67)
Dividends of subsidiaries
Transfers to other reserves 3 (3)
Translation 9 (7) (1)
Balance at 30 September 2010 6,615 179 (2,798) (2)
Balance at 31 December 2010 6,627 194 (2,750) (2)
Profit for the period 1,167
Other comprehensive expense (1)
Total comprehensive (expense)
income - (1) 1,167 -
Shares issued 33
Share-based payment for share
awards
net of exercised 14
Dividends paid (89)
Dividends of subsidiaries
Translation (32) 30
Balance at 30 September 2011 6,660 175 (1,642) (2)
Equity holders of the parent
Available Foreign
for Actuarial currency
sale (losses) translation
SA Rand million reserve gains reserve
Balance at 31 December 2009 414 (285) 6,314
Profit for the period
Other comprehensive (expense) income 114 (1,007)
Total comprehensive (expense) income 114 - (1,007)
Shares issued
Share-based payment for share awards
net of exercised
Dividends paid
Dividends of subsidiaries
Transfers to other reserves
Translation (31)
Balance at 30 September 2010 497 (285) 5,307
Balance at 31 December 2010 568 (409) 4,548
Profit for the period
Other comprehensive (expense) income (459) 4,251
Total comprehensive (expense) income (459) - 4,251
Shares issued
Share issue expenses
Share-based payment for share awards
net of exercised
Dividends paid
Dividends of subsidiaries
Translation 66 (9)
Balance at 30 September 2011 175 (418) 8,799
US Dollar million
Balance at 31 December 2009 56 (38) (317)
Profit for the period
Other comprehensive income 15 90
Total comprehensive income 15 - 90
Shares issued
Share-based payment for share awards
net of exercised
Dividends paid
Dividends of subsidiaries
Transfers to other reserves
Translation (3)
Balance at 30 September 2010 71 (41) (227)
Balance at 31 December 2010 86 (62) (104)
Profit for the period
Other comprehensive expense (63) (412)
Total comprehensive (expense) income (63) - (412)
Shares issued
Share-based payment for share awards
net of exercised
Dividends paid
Dividends of subsidiaries
Translation (1) 10
Balance at 30 September 2011 22 (52) (516)
Non-
controlling Total
SA Rand million Total interests equity
Balance at 31 December 2009 21,558 966 22,524
Profit for the period 233 268 501
Other comprehensive (expense) income (713) (713)
Total comprehensive (expense) income (480) 268 (212)
Shares issued 5,764 5,764
Share-based payment for share awards
net of exercised 45 45
Dividends paid (492) (492)
Dividends of subsidiaries - (274) (274)
Transfers to other reserves - -
Translation 44 (44) -
Balance at 30 September 2010 26,439 916 27,355
Balance at 31 December 2010 26,208 815 27,023
Profit for the period 8,158 199 8,357
Other comprehensive (expense) income 3,788 3,788
Total comprehensive (expense) income 11,946 199 12,145
Shares issued 227 227
Share issue expenses (2) (2)
Share-based payment for share awards
net of exercised 91 91
Dividends paid (651) (651)
Dividends of subsidiaries - (87) (87)
Translation (159) 159 -
Balance at 30 September 2011 37,660 1,086 38,746
US Dollar million
Balance at 31 December 2009 2,900 130 3,030
Profit for the period 20 37 57
Other comprehensive income 130 130
Total comprehensive income 150 37 187
Shares issued 811 811
Share-based payment for share awards
net of exercised 6 6
Dividends paid (67) (67)
Dividends of subsidiaries - (37) (37)
Transfers to other reserves - -
Translation (2) 2 -
Balance at 30 September 2010 3,798 132 3,930
Balance at 31 December 2010 3,989 124 4,113
Profit for the period 1,167 29 1,196
Other comprehensive expense (476) (476)
Total comprehensive (expense) income 691 29 720
Shares issued 33 33
Share-based payment for share awards
net of exercised 14 14
Dividends paid (89) (89)
Dividends of subsidiaries - (13) (13)
Translation 7 (7) -
Balance at 30 September 2011 4,645 133 4,778
Rounding of figures may result in computational discrepancies.
Segmental reporting
for the quarter and nine months ended 30 September 2011
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"). Individual members of the Executive Management team
are responsible for geographic regions of the business.
Quarter ended Nine months ended
Sep Jun Sep Sep Sep
2011 2011 2010 2011 2010
Reviewed Reviewed Unaudited Reviewed Unaudited
SA Rand million
Gold income
South Africa 4,839 4,432 4,633 13,181 11,558
Continental
Africa 4,919 3,918 3,490 12,641 9,950
Australasia 658 629 711 1,960 2,403
Americas 3,195 2,335 2,082 7,649 6,129
13,610 11,313 10,916 35,431 30,039
Equity accounted
investments
included above (760) (633) (544) (1,967) (1,819)
12,850 10,680 10,372 33,464 28,220
Quarter ended Nine months ended
Sep Jun Sep Sep Sep
2011 2011 2010 2011 2010
Reviewed Reviewed Unaudited Reviewed Unaudited
US Dollar million
Gold income
South Africa 675 654 634 1,889 1,553
Continental
Africa 683 578 478 1,807 1,336
Australasia 93 93 98 282 323
Americas 448 344 285 1,095 822
1,899 1,669 1,495 5,073 4,035
Equity accounted
investments
included above (106) (93) (75) (282) (244)
1,793 1,576 1,420 4,791 3,791
Quarter ended Nine months ended
Sep Jun Sep Sep Sep
2011 2011 2010 2011 2010
Reviewed Reviewed Unaudited Reviewed Unaudited
SA Rand million
Gross profit
(loss)
South Africa 2,092 1,787 2,742 5,348 3,525
Continental
Africa 2,346 1,658 (573) 5,136 (192)
Australasia - (71) (992) (34) (940)
Americas 1,795 1,008 1,636 3,904 2,981
Corporate and
other (23) 149 28 77 158
6,210 4,531 2,841 14,431 5,532
Equity accounted
investments
included above (345) (278) (168) (837) (738)
5,865 4,254 2,672 13,594 4,794
Quarter ended Nine months ended
Sep Jun Sep Sep Sep
2011 2011 2010 2011 2010
Reviewed Reviewed Unaudited Reviewed Unaudited
US Dollar million
Gross profit
(loss)
South Africa 290 264 375 763 479
Continental
Africa 325 245 (86) 732 (36)
Australasia - (10) (139) (5) (132)
Americas 252 149 226 558 403
Corporate and
other (4) 21 4 12 21
863 668 380 2,060 736
Equity accounted
investments
included above (48) (41) (23) (119) (99)
815 627 357 1,941 637
Quarter ended Nine months ended
Sep Jun Sep Sep Sep
2011 2011 2010 2011 2010
Unaudited Unaudited Unaudited Unaudited Unaudited
SA Rand million
Adjusted gross
profit (loss)
excluding hedge
buy-back
costs (1)
South Africa 2,092 1,787 1,374 5,348 2,929
Continental
Africa 2,347 1,655 795 5,134 2,343
Australasia - (71) (38) (34) (62)
Americas 1,799 1,025 979 3,914 2,700
Corporate
and other (23) 149 28 77 158
6,215 4,545 3,137 14,439 8,067
Equity accounted
investments
included above (345) (278) (168) (837) (738)
5,870 4,268 2,969 13,602 7,329
Quarter ended Nine months ended
Sep Jun Sep Sep Sep
2011 2011 2010 2011 2010
Unaudited Unaudited Unaudited Unaudited Unaudited
US Dollar million
Adjusted gross
profit (loss)
excluding hedge
buy-back
costs (1)
South Africa 290 264 189 763 394
Continental
Africa 325 244 109 731 315
Australasia - (10) (5) (5) (8)
Americas 253 151 134 560 362
Corporate
and other (4) 21 4 12 21
864 670 431 2,061 1,084
Equity accounted
investments
included above (48) (41) (23) (119) (99)
816 629 408 1,942 986
(1) Refer to note B "Non-GAAP disclosure" for definition.
Rounding of figures may result in computational discrepancies.
Quarter ended Nine months ended
Sep Jun Sep Sep Sep
2011 2011 2010 2011 2010
Unaudited Unaudited Unaudited Unaudited Unaudited
kg
Gold production
(1)
South Africa 12,243 13,415 14,859 38,124 40,726
Continental
Africa 12,769 11,740 11,600 35,796 34,768
Australasia 1,558 1,888 2,894 5,690 9,138
Americas 7,401 6,733 6,776 20,440 20,082
33,970 33,776 36,129 100,049 104,714
Quarter ended Nine months ended
Sep Jun Sep Sep Sep
2011 2011 2010 2011 2010
Unaudited Unaudited Unaudited Unaudited Unaudited
oz (000)
Gold production (1)
South Africa 394 431 478 1,226 1,309
Continental
Africa 411 377 373 1,151 1,118
Australasia 50 61 93 183 294
Americas 238 216 218 657 646
1,092 1,086 1,162 3,217 3,367
Quarter ended Nine months ended
Sep Jun Sep Sep Sep
2011 2011 2010 2011 2010
Unaudited Unaudited Unaudited Unaudited Unaudited
SA Rand million
Capital
expenditure
South Africa 1,004 786 731 2,453 2,087
Continental
Africa 722 710 439 1,868 1,022
Australasia 227 130 72 433 219
Americas 895 709 604 2,155 1,488
Corporate
and other 74 7 9 96 25
2,922 2,342 1,855 7,005 4,841
Equity accounted
investments
included above (143) (156) (84) (404) (203)
2,780 2,186 1,771 6,601 4,638
Quarter ended Nine months ended
Sep Jun Sep Sep Sep
2011 2011 2010 2011 2010
Unaudited Unaudited Unaudited Unaudited Unaudited
US Dollar million
Capital
expenditure
South Africa 140 116 100 351 280
Continental
Africa 101 105 60 268 137
Australasia 32 19 10 62 29
Americas 125 105 82 308 200
Corporate
and other 10 1 1 14 3
408 346 253 1,002 650
Equity accounted
investments
included above (20) (23) (11) (58) (27)
388 323 242 944 623
As at As at As at As at
Sep Jun Dec Sep
2011 2011 2010 2010
Reviewed Reviewed Audited Unaudited
SA Rand million
Total assets
South Africa 16,489 15,989 16,226 16,394
Continental Africa 33,687 27,486 26,060 26,896
Australasia 4,717 3,830 3,644 3,466
Americas 19,287 15,172 13,855 13,918
Corporate and other 8,341 6,030 3,384 9,667
82,521 68,507 63,169 70,341
Equity accounted investments
included above (671) (544) (540) (522)
81,850 67,963 62,629 69,819
As at As at As at As at
Sep Jun Dec Sep
2011 2011 2010 2010
Reviewed Reviewed Audited Unaudited
US Dollar million
Total assets
South Africa 2,033 2,373 2,469 2,356
Continental Africa 4,154 4,079 3,966 3,864
Australasia 582 568 555 498
Americas 2,378 2,252 2,109 2,000
Corporate and other 1,029 895 515 1,389
10,176 10,167 9,614 10,107
Equity accounted investments
included above (82) (81) (82) (75)
10,094 10,086 9,532 10,032
(1) Gold production includes equity accounted investments.
Rounding of figures may result in computational discrepancies.
Notes for the quarter and nine months ended 30 September 2011
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
2010.
The financial statements of AngloGold Ashanti Limited have been prepared in
compliance with IAS34, JSE Listings Requirements and in the manner required by
the South African Companies Act, 2008 for the preparation of financial
information of the group for the quarter and nine months ended 30 September
2011.
2. Revenue
Quarter ended Nine months ended
Sep Jun Sep Sep Sep
2011 2011 2010 2011 2010
Reviewed Reviewed Unaudited Reviewed Unaudited
SA Rand million
Gold income 12,850 10,680 10,372 33,464 28,220
By-products
(note 3) 406 458 224 1,220 614
Royalties
received (note 6) 97 336 15 490 15
Interest received 75 73 58 203 192
13,428 11,547 10,668 35,377 29,040
Quarter ended Nine months ended
Sep Jun Sep Sep Sep
2011 2011 2010 2011 2010
Reviewed Reviewed Unaudited Reviewed Unaudited
US Dollar million
Gold income 1,793 1,576 1,420 4,791 3,791
By-products
(note 3) 57 67 31 175 83
Royalties
received (note 6) 13 50 2 71 2
Interest
received 10 11 8 29 26
1,873 1,704 1,461 5,066 3,901
3. Cost of sales
Quarter ended Nine months ended
Sep Jun Sep Sep Sep
2011 2011 2010 2011 2010
Reviewed Reviewed Unaudited Reviewed Unaudited
SA Rand million
Cash operating
costs (5,542) (4,972) (5,220) (15,621) (14,964)
Insurance
reimbursement - - 37 - 123
By-products
revenue (note 2) 406 458 224 1,220 614
(5,136) (4,514) (4,959) (14,401) (14,227)
Royalties (395) (321) (282) (992) (717)
Other cash costs (67) (48) (43) (165) (128)
Total cash costs (5,598) (4,883) (5,284) (15,558) (15,072)
Retrenchment
costs (26) (20) (23) (73) (102)
Rehabilitation
and other
non-cash costs (80) (349) (106) (497) (228)
Production costs (5,704) (5,251) (5,414) (16,129) (15,401)
Amortisation of
tangible assets (1,374) (1,274) (1,240) (3,942) (3,680)
Amortisation of
intangible
assets (4) (4) (4) (12) (11)
Total production
costs (7,083) (6,529) (6,658) (20,083) (19,093)
Inventory change 102 117 (1) 221 274
(6,980) (6,412) (6,659) (19,863) (18,819)
Quarter ended Nine months ended
Sep Jun Sep Sep Sep
2011 2011 2010 2011 2010
Reviewed Reviewed Unaudited Reviewed Unaudited
US Dollar million
Cash operating
costs (777) (733) (715) (2,241) (2,011)
Insurance
reimbursement - - 5 - 16
By-products
revenue (note 2) 57 67 31 175 83
(720) (666) (679) (2,066) (1,912)
Royalties (55) (47) (39) (142) (96)
Other cash costs (9) (7) (6) (23) (18)
Total cash costs (784) (721) (724) (2,231) (2,026)
Retrenchment
costs (4) (3) (3) (10) (14)
Rehabilitation
and other
non-cash costs (11) (52) (15) (72) (31)
Production costs (799) (775) (741) (2,314) (2,070)
Amortisation of
tangible assets (192) (188) (170) (565) (494)
Amortisation of
intangible assets (1) (1) - (2) (1)
Total production
costs (992) (964) (912) (2,881) (2,566)
Inventory change 14 17 1 31 38
(977) (947) (911) (2,849) (2,529)
4. Loss on non-hedge derivatives and other commodity contracts
Quarter ended Nine months ended
Sep Jun Sep Sep Sep
2011 2011 2010 2011 2010
Reviewed Reviewed Unaudited Reviewed Unaudited
SA Rand million
Loss on realised
non-hedge
derivatives - - (745) - (2,072)
Loss on hedge
buy-back costs - - (11,639) - (11,639)
(Loss) gain on
unrealised non-hedge
derivatives (5) (14) 11,343 (7) 9,104
(5) (14) (1,041) (7) (4,607)
Quarter ended Nine months ended
Sep Jun Sep Sep Sep
2011 2011 2010 2011 2010
Reviewed Reviewed Unaudited Reviewed Unaudited
US Dollar million
Loss on realised
non-hedge
derivatives - - (101) - (277)
Loss on hedge
buy-back costs - - (1,637) - (1,637)
(Loss) gain on
unrealised non-hedge
derivatives (1) (2) 1,586 (1) 1,289
(1) (2) (152) (1) (625)
Rounding of figures may result in computational discrepancies.
5. Other operating expenses
Quarter ended Nine months ended
Sep Jun Sep Sep Sep
2011 2011 2010 2011 2010
Reviewed Reviewed Unaudited Reviewed Unaudited
SA Rand million
Pension and
medical defined
benefit
provisions (53) (26) (24) (104) (72)
Claims filed by
former employees
in respect of
loss of employment,
work-related
accidentinjuries
and diseases,
governmental
fiscal claims
and care and
maintenance
of old tailings
operations (31) (27) (26) (121) (50)
(84) (53) (50) (225) (122)
Quarter ended Nine months ended
Sep Jun Sep Sep Sep
2011 2011 2010 2011 2010
Reviewed Reviewed Unaudited Reviewed Unaudited
US Dollar million
Pension and medical
defined benefit
provisions (7) (4) (3) (15) (10)
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 (4) (4) (4) (17) (6)
(11) (8) (7) (32) (16)
6. Special items
Quarter ended Nine months ended
Sep Jun Sep Sep Sep
2011 2011 2010 2011 2010
Reviewed Reviewed Unaudited Reviewed Unaudited
SA Rand million
Indirect tax
expenses and
legal claims (26) (32) - (93) (79)
Mandatory
convertible
bonds issue
discount,
underwriting and
professional fees - - (401) - (401)
Net impairments
of tangible assets
(note 9) (22) (66) (92) (94) (235)
Black Economic
Empowerment
transaction
modification
costs for
Izingwe (Pty) Ltd - (44) - (44) -
Impairment of
other receivables (1) (3) (4) (11) (56)
Contractor
termination
costs at Geita
Gold Minining
Limited - - - - (8)
Recovery (loss)
on consignment
inventory - - 39 - 39
Insurance claim
recovery - - 93 - 103
Royalties
received (1)
(note 2) 97 336 15 490 15
Net (loss)
profit on
disposal and
derecognition
of land, mineral
rights, tangible
assets and
exploration
properties (note 9) (21) 18 (74) (15) (109)
Impairment of
investments
(note 9) (124) (12) - (136) -
Profit on
disposal of
investments (note 9) - - - - 45
Profit on disposal
of subsidiary ISS
International
Limited (note 9) - - - 14 -
(97) 197 (424) 111 (686)
Quarter ended Nine months ended
Sep Jun Sep Sep Sep
2011 2011 2010 2011 2010
Reviewed Reviewed Unaudited Reviewed Unaudited
US Dollar million
Indirect tax
expenses and
legal claims (3) (5) - (13) (10)
Mandatory
convertible
bonds issue
discount,
underwriting and
professional fees - - (56) - (56)
Net impairments
of tangible
assets
(note 9) (3) (10) (13) (14) (32)
Black Economic
Empowerment
transaction
modification
costs for
Izingwe (Pty) Ltd - (7) - (7) -
Impairment of
other
receivables - - (1) (1) (8)
Contractor
termination
costs at Geita
Gold Minining
Limited - - - - (1)
Recovery (loss)
on consignment
inventory - - 5 - 5
Insurance claim
recovery - - 14 - 15
Royalties
received (1)
(note 2) 13 50 2 71 2
Net (loss) profit
on disposal and
derecognition
of land, mineral
rights, tangible
assets and
exploration
properties (note 9) (4) 3 (10) (2) (15)
Impairment of
investments (note 9)(16) (2) - (18) -
Profit on disposal
of investments
(note 9) - - - - 6
Profit on disposal
of subsidiary ISS
International
Limited (note 9) - - - 2 -
(13) 29 (60) 18 (95)
(1) The June 2011 quarter includes the sale of the Ayanfuri royalty to Franco
Nevada Corporation for a pre-taxation amount of R237m, $35m.
7. Finance costs and unwinding of obligations
Quarter ended Nine months ended
Sep Jun Sep Sep Sep
2011 2011 2010 2011 2010
Reviewed Reviewed Unaudited Reviewed Unaudited
SA Rand million
Finance costs (246) (250) (189) (744) (575)
Unwinding of
obligations,
accretion of
convertible
bonds and other
discounts (99) (92) (96) (284) (271)
(345) (342) (285) (1,028) (846)
Quarter ended Nine months ended
Sep Jun Sep Sep Sep
2011 2011 2010 2011 2010
Reviewed Reviewed Unaudited Reviewed Unaudited
US Dollar million
Finance costs (34) (37) (26) (107) (78)
Unwinding of
obligations,
accretion of
convertible
bonds and other
discounts (14) (14) (13) (41) (36)
(48) (50) (39) (148) (114)
8. Taxation
Quarter ended Nine months ended
Sep Jun Sep Sep Sep
2011 2011 2010 2011 2010
Reviewed Reviewed Unaudited Reviewed Unaudited
SA Rand million
South African
taxation
Mining tax (318) - 84 (318) -
Non-mining tax 9 (27) 71 (28) (59)
Prior year
provision 20 (49) 618 (34) 594
Deferred
taxation
Temporary
differences (373) (470) 1,311 (1,247) 1,297
Unrealised
non-hedge
derivatives and
other commodity
contracts - - (2,152) - (1,892)
Change in
estimated
deferred tax rate - - (7) - -
(662) (546) (76) (1,626) (60)
Foreign taxation
Normal taxation (769) (351) (358) (1,487) (1,011)
Prior year
provision (55) 2 29 (53) (29)
Deferred taxation
Temporary
differences 22 (118) 87 (176) (18)
Unrealised non-hedge
derivatives and
other commodity
contracts - - - - (23)
(802) (467) (242) (1,716) (1,080)
(1,465) (1,013) (318) (3,342) (1,140)
Quarter ended Nine months ended
Sep Jun Sep Sep Sep
2011 2011 2010 2011 2010
Reviewed Reviewed Unaudited Reviewed Unaudited
US Dollar million
South African
taxation
Mining tax (42) - 13 (42) 2
Non-mining tax 1 (4) 10 (4) (7)
Prior year
provision 3 (7) 87 (5) 84
Deferred
taxation
Temporary
differences (53) (69) 184 (180) 183
Unrealised
non-hedge
derivatives and
other commodity
contracts - - (301) - (267)
Change in
estimated
deferred tax rate - - (1) - -
(92) (80) (7) (232) (5)
Foreign taxation
Normal taxation (107) (52) (49) (211) (136)
Prior year
provision (7) - 4 (7) (4)
Deferred taxation
Temporary
differences 1 (17) 12 (27) (1)
Unrealised
non-hedge
derivatives and
other commodity
contracts - - - - (3)
(113) (69) (33) (245) (145)
(204) (149) (41) (477) (149)
Rounding of figures may result in computational discrepancies.
9. Headline earnings
Quarter ended Nine months ended
Sep Jun Sep Sep Sep
2011 2011 2010 2011 2010
Reviewed Reviewed Unaudited Reviewed Unaudited
SA Rand million
The profit
attributable to
equity shareholders
has been adjusted by
the following
to arrive at
headline earnings:
Profit attributable
to equity
shareholders 3,304 3,195 443 8,158 233
Net impairments
of tangible
assets (note 6) 22 66 92 94 235
Net loss
(profit) on
disposal and
derecognition
of land,
mineral rights,
tangible assets
and exploration
properties
(note 6) 21 (18) 74 15 109
Impairment of
investments
(note 6) 124 12 - 136 -
Profit on
disposal of
subsidiary ISS
International
Limited (note 6) - - - (14) -
Profit on
disposal of
investments
(note 6) - - - - (45)
Net impairment
(reversal) of
investment
in associates
and joint ventures 2 15 (74) 17 (40)
Special items
of associates - - (7) - (7)
Taxation on
items above -
current portion - 6 - 7 4
Taxation on
items above -
deferred portion (15) (32) (51) (53) (87)
3,458 3,244 476 8,359 402
Headline
earnings per
ordinary share
(cents) (1) 895 841 129 2,166 109
Diluted headline
earnings per ordinary
share (cents) (2) 846 706 129 1,944 109
Quarter ended Nine months ended
Sep Jun Sep Sep Sep
2011 2011 2010 2011 2010
Reviewed Reviewed Unaudited Reviewed Unaudited
US Dollar million
The profit
attributable to
equity shareholders
has been adjusted by
the following
to arrive at
headline earnings:
Profit attributable
to equity
shareholders 456 470 51 1,167 20
Net impairments
of tangible
assets (note 6) 3 10 13 14 32
Net loss
(profit) on
disposal and
derecognition
of land,
mineral rights,
tangible assets
and exploration
properties
(note 6) 4 (3) 10 2 15
Impairment of
investments
(note 6) 16 2 - 18 -
Profit on
disposal of
subsidiary ISS
International
Limited (note 6) - - - (2) -
Profit on
disposal of
investments (note 6) - - - - (6)
Net impairment
(reversal) of
investment
in associates
and joint ventures - 2 (10) 2 (6)
Special items
of associates - - (1) - (1)
Taxation on
items above -
current portion - 1 - 1 -
Taxation on
items above -
deferred portion (2) (5) (7) (8) (12)
476 477 55 1,194 43
Headline
earnings per
ordinary share
(cents) (1) 123 124 15 309 12
Diluted headline
earnings per
ordinary
share (cents) (2) 117 104 15 278 12
(1) Calculated on the basic weighted average number of ordinary shares.
(2) Calculated on the diluted weighted average number of ordinary shares.
10. Number of shares
Quarter ended
Sep Jun Sep
2011 2011 2010
Reviewed Reviewed 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 381,850,470 381,573,111 380,966,077
E ordinary shares in issue 3,421,848 3,444,060 2,837,150
Total ordinary shares: 385,272,318 385,017,171 383,803,227
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 basic and
diluted number of ordinary shares
outstanding for the period, the
following were taken into
consideration:
Ordinary shares 381,644,151 381,480,773 364,556,377
E ordinary shares 3,431,215 2,665,595 2,954,409
Fully vested options 1,305,486 1,435,811 905,619
Weighted average number of shares 386,380,852 385,582,179 368,416,405
Dilutive potential of share options 1,290,253 1,109,716 1,113,099
Dilutive potential of convertible
bonds 33,524,615 33,524,615 -
Diluted number of ordinary shares 421,195,720 420,216,510 369,529,504
Nine months ended
Sep Sep
2011 2010
Reviewed Unaudited
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 381,850,470 380,966,077
E ordinary shares in issue 3,421,848 2,837,150
Total ordinary shares: 385,272,318 383,803,227
A redeemable preference shares 2,000,000 2,000,000
B redeemable preference shares 778,896 778,896
In calculating the basic and diluted number of
ordinary shares
outstanding for the period, the following were
taken into consideration:
Ordinary shares 381,471,126 363,135,881
E ordinary shares 2,958,298 3,305,316
Fully vested options 1,447,478 1,100,186
Weighted average number of shares 385,876,902 367,541,383
Dilutive potential of share options 1,321,614 1,158,835
Dilutive potential of convertible bonds 33,524,615 -
Diluted number of ordinary shares 420,723,131 368,700,218
11. Share capital and premium
As at
Sep Jun Dec Sep
2011 2011 2010 2010
Reviewed Reviewed Audited Unaudited
SA Rand million
Balance at beginning of period 46,343 46,343 40,662 40,662
Ordinary shares issued 234 156 5,771 5,733
E ordinary shares cancelled (15) (13) (90) (85)
Sub-total 46,562 46,486 46,343 46,310
Redeemable preference shares
held within the group (313) (313) (313) (313)
Ordinary shares held within
the group (148) (149) (139) (181)
E ordinary shares held within
the group (198) (200) (213) (218)
Balance at end of period 45,903 45,824 45,678 45,598
As at
Sep Jun Dec Sep
2011 2011 2010 2010
Reviewed Reviewed Audited Unaudited
US Dollar million
Balance at beginning of period 6,734 6,734 5,935 5,935
Ordinary shares issued 33 22 812 806
E ordinary shares cancelled (2) (2) (13) (12)
Sub-total 6,765 6,754 6,734 6,729
Redeemable preference shares
held within the group (53) (53) (53) (53)
Ordinary shares held within
the group (22) (23) (22) (28)
E ordinary shares held within
the group (30) (30) (32) (33)
Balance at end of period 6,660 6,648 6,627 6,615
Rounding of figures may result in computational discrepancies.
12. Exchange rates
Sep Jun Dec Sep
2011 2011 2010 2010
Unaudited Unaudited Unaudited Unaudited
ZAR/USD average for the
year to date 6.97 6.89 7.30 7.45
ZAR/USD average for the
quarter 7.14 6.78 6.88 7.31
ZAR/USD closing 8.11 6.74 6.57 6.96
ZAR/AUD average for the
year to date 7.24 7.11 6.71 6.68
ZAR/AUD average for the
quarter 7.50 7.20 6.80 6.61
ZAR/AUD closing 7.81 7.23 6.70 6.73
BRL/USD average for the
year to date 1.63 1.63 1.76 1.78
BRL/USD average for the
quarter 1.64 1.60 1.70 1.75
BRL/USD closing 1.89 1.56 1.67 1.69
ARS/USD average for the
year to date 4.08 4.04 3.91 3.89
ARS/USD average for the
quarter 4.16 4.08 3.96 3.94
ARS/USD closing 4.20 4.11 3.97 3.96
13. Capital commitments
Sep Jun Dec Sep
2011 2011 2010 2010
Reviewed Reviewed Audited Unaudited
SA Rand million
Orders placed and outstanding
on capital contracts at the
prevailing rate of exchange (1) 2,317 2,719 1,156 1,624
Sep Jun Dec Sep
2011 2011 2010 2010
Reviewed Reviewed Audited Unaudited
US Dollar million
Orders placed and outstanding
on capital contracts at the
prevailing rate of exchange (1) 286 403 176 233
(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 30 September
2011 are detailed below:
Contingencies and guarantees As at
Sep Sep
2011 2010
Reviewed Unaudited
SA Rand million
Contingent liabilities
Groundwater pollution (1) - -
Deep groundwater pollution - South Africa (2) - -
Sales tax on gold deliveries - Brazil (3) 684 590
Other tax disputes - Brazil (4) 286 226
Indirect taxes - Ghana (5) 86 69
ODMWA litigation (6) - -
Contingent assets
Royalty - Boddington Gold Mine (7) - -
Royalty - Tau Lekoa Gold Mine(8) - -
Financial Guarantees
Oro Group (Pty) Limited (9) 100 100
1,156 985
Contingencies and guarantees As at
Sep Sep
2011 2010
Reviewed Unaudited
US Dollar million
Contingent liabilities
Groundwater pollution (1) - -
Deep groundwater pollution - South Africa (2) - -
Sales tax on gold deliveries - Brazil (3) 84 85
Other tax disputes - Brazil (4) 35 32
Indirect taxes - Ghana (5) 11 10
ODMWA litigation (6) - -
Contingent assets
Royalty - Boddington Gold Mine (7) - -
Royalty - Tau Lekoa Gold Mine(8) - -
Financial Guarantees
Oro Group (Pty) Limited (9) 12 14
142 141
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 C rrego do Sit o Mineracao
S.A. manages the operation and its attributable share of the first assessment
is approximately $52m, R423m (Sep 2010: $53m, R369m). The company`s
attributable share of the second assessment is approximately $32m, R261m (Sep
2010: $32m, R223m). 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. In July 2011, the administrative council`s second chamber
ruled in favour of MSG and fully cancelled the tax liability related to the
second period. The State of Goias has appealed to the full board of the State
of Goias tax administrative council. 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 $9m, R72m (Sep 2010: $9m, R63m).
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 $26m, R214m (Sep 2010: $23m, R160m).
(5) Indirect taxes - AngloGold Ashanti (Ghana) Limited received a tax
assessment for $11m, R86m (Sep 2010: $10m, R70m) 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) Occupational Diseases in Mines and Works Act (ODMWA) litigation - The case
of Mr Thembekile Mankayi was heard in the High Court of South Africa in June
2008, and an appeal heard in the Supreme Court of Appeals in 2010. In both
instances judgement was awarded in favour of AngloGold Ashanti Limited. A
further appeal that was lodged by Mr Mankayi was heard in the Constitutional
Court in 2010. Judgement in the Constitutional Court was handed down on 3
March 2011.
Following the judgement, Mr Mankayi`s executor may proceed with his case in
the High Court. This will comprise, amongst others, providing evidence showing
that Mr Mankayi contracted silicosis as a result of negligent conduct on the
part of AngloGold Ashanti.
The company will defend the case and any subsequent claims on their merits.
Should other individuals or groups lodge similar claims, these too would be
defended by the company and adjudicated by the Courts on their merits. In view
of the limitation of current information for the accurate estimation of a
possible liability, no reliable estimate can be made for this possible
obligation.
(7) Royalty - Boddington Gold Mine - 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, R788m, of which $26m, R188m (Sep 2010: $2m, R13m) has been
received to date. Royalties of $9m, R64m (Sep 2010: $2m, R13m) were received
during the quarter.
(8) Royalty - Tau Lekoa Gold Mine - 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 $1m, R8m
(Sep 2010: Nil) were received during the quarter.
(9) 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 $12m, R100m (Sep 2010: $14m,
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
$44m, R357m at 30 September 2011 (Sep 2010: $48m, R334m). The last audited
value added tax return was for the period ended 28 February 2011 and at the
reporting date the audited amount was $58m, R470m (Sep 2010: $47m, R327m). 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 $73m, R592m
at 30 September 2011 (Sep 2010: $55m, R383m). 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 $61m, R495m (Sep 2010: $42, R292m) have been lodged
with the Customs and Excise authorities which are still outstanding, whilst
claims for a refund of $12m, R97m (Sep 2010: $13m, R90m) 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
Appointment to the board of directors: On 31 August 2011, AngloGold Ashanti
announced the appointment of Ms Nozipho January-Bardill to the board with
effect from 1 October 2011.
18. Dividend
Interim Dividend No. 110 of 90 South African cents or 7.6182 UK pence or
19.188 cedis per ordinary share was paid to registered shareholders on 9
September 2011, while a dividend of 2.337 Australian cents per CHESS
Depositary Interest (CDI) was paid on the same day. On 12 September 2011,
holders of Ghanaian Depositary Shares (GhDS) were paid 0.19188 cedis per GhDS.
Each CDI represents one-fifth of an ordinary share, and 100 GhDSs represents
one ordinary share. A dividend of 12.0812 US cents per American Depositary
Share (ADS) was paid to holders of American Depositary Receipts (ADRs) on 19
September 2011. Each ADS represents one ordinary share.
Interim Dividend No. E10 of 45 South African cents was paid to holders of E
ordinary shares on 9 September 2011, being those employees participating in
the Bokamoso ESOP and Izingwe Holdings (Proprietary) Limited.
The directors declared Interim Dividend No. 111 of 90 South African cents per
ordinary share for the quarter ended 30 September 2011. 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, 24 November
Last date to trade ordinary shares cum dividend Friday, 25 November
Last date to register transfers of certificated
securities cum dividend Friday, 25 November
Ordinary shares trade ex-dividend Monday, 28 November
Record date Friday, 2 December
Payment date Friday, 9 December
On the payment date, dividends due to holders of certificated securities on
the South African and United Kingdom share registers will be electronically
transferred to shareholders` bank accounts. Given the increasing incidences of
fraud with respect to cheque payments, the company has ceased the payment of
dividends by way of cheque. Shareholders are requested to notify the relevant
share registrars with banking details to enable future dividends to be paid
via electronic funds transfer. Refer to the back cover for share registrar
details.
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, 28 November
2011 and Friday, 2 December 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, 30 November
Record date Friday, 2 December
Approximate date for currency conversion Friday, 9 December
Approximate payment date of dividend Monday, 19 December
Assuming an exchange rate of R7.8662/$, the dividend payable per ADS is
equivalent to 11.4414 US cents.
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, 25 November
GhDSs trade ex-dividend Monday, 28 November
Record date Friday, 2 December
Approximate payment date of dividend Monday, 12 December
Assuming an exchange rate of R1/Cents (USD)0.20476, the dividend payable per
share is equivalent to 0.1843 cedis.
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 Interim Dividend No. E11 of 45 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, 9 December 2011.
By order of the Board
T T MBOWENI M CUTIFANI
Chairman Chief Executive Officer
7 November 2011
Non-GAAP disclosure
From time to time AngloGold Ashanti Limited may publicly disclose certain "Non-
GAAP" financial measures in the course of its financial presentations,
earnings releases, earnings conference calls and otherwise.
The group uses certain Non-GAAP performance measures and ratios in managing
the business and may provide users of this financial information with
additional meaningful comparisons between current results and results in prior
operating periods. Non-GAAP financial measures should be viewed in addition
to, and not as an alternative to, the reported operating results or cash f low
from operations or any other measure of performance prepared in accordance
with IFRS. In addition, the presentation of these measures may no t be
comparable to similarly titled measures that other companies use.
A Adjusted headline earnings
Quarter ended Nine months ended
Sep Jun Sep Sep Sep
2011 2011 2010 2011 2010
Unaudited Unaudited Unaudited Unaudited Unaudited
SA Rand million
Headline earnings
(note 9) 3,458 3,244 476 8,359 402
Loss (gain)
on unrealised
non-hedge
derivatives
and other
commodity
contracts
(note 4) 5 14 (11,343) 7 (9,104)
Deferred tax
on unrealised
non-hedge
derivatives
and other
commodity
contracts
(note 8) - - 2,152 - 1,915
Fair value
adjustment
on option
component of
convertible
bonds (88) (499) 166 (677) (319)
Fair value
adjustment
on mandatory
convertible
bonds (66) (442) 160 (647) 160
Adjusted
headline
earnings
(loss) (1) 3,310 2,317 (8,389) 7,043 (6,947)
Hedge
buy-back and
related
costs net of
taxation - - 10,573 - 10,573
Adjusted headline
earnings excluding
hedge buy-back
costs (1) 3,310 2,317 2,184 7,043 3,626
Cents per
share (2)
Adjusted headline
earnings (1) 857 601 (2,277) 1,825 (1,890)
Adjusted headline
earnings excluding
hedge buy-back
costs (1) 857 601 593 1,825 987
Quarter ended
Sep Jun Sep
2011 2011 2010
Unaudited Unaudited Unaudited
US Dollar million
Headline earnings (note 9) 476 477 55
Loss (gain) on unrealised non-hedge
derivatives and other
commodity contracts (note 4) 1 2 (1,586)
Deferred tax on unrealised non-hedge
derivatives and other
commodity contracts (note 8) - - 301
Fair value adjustment on option
component of convertible bonds (11) (73) 24
Fair value adjustment on mandatory
convertible bonds (9) (64) 22
Adjusted headline earnings (loss) (1) 457 342 (1,184)
Hedge buy-back and related costs net of
taxation - - 1,487
Adjusted headline earnings excluding
hedge buy-back costs (1) 457 342 303
Cents per share (2)
Adjusted headline earnings (1) 118 89 (321)
Adjusted headline earnings excluding
hedge buy-back costs (1) 118 89 82
Nine months ended
Sep Sep
2011 2010
Unaudited Unaudited
US Dollar million
Headline earnings (note 9) 1,194 43
Loss (gain) on unrealised non-hedge derivatives and
other
commodity contracts (note 4) 1 (1,289)
Deferred tax on unrealised non-hedge derivatives and
other
commodity contracts (note 8) - 270
Fair value adjustment on option component of
convertible bonds (98) (40)
Fair value adjustment on mandatory convertible bonds (95) 22
Adjusted headline earnings (loss) (1) 1,002 (993)
Hedge buy-back and related costs net of taxation - 1,487
Adjusted headline earnings excluding hedge buy-back
costs (1) 1,002 494
Cents per share (2)
Adjusted headline earnings (1) 260 (270)
Adjusted headline earnings excluding hedge buy-back
costs (1) 260 134
(1)(Gain) loss on non-hedge derivatives and other commodity contracts in the
income statement comprise the change in fair value of all non-hedge
derivatives and other commodity contracts as follows:
- Open positions: The change in fair value from the previous reporting date or
date of recognition (if later) through to the current reporting date; and
- Settled positions: The change in fair value from the previous reporting date
or date of recognition (if later) through to the date of settlement.
Adjusted headline earnings is intended to illustrate earnings after adjusting
for:
- The unrealised fair value change in contracts that were still open at
reporting dates, as well as, the unwinding of the historic marked-to-market
value of the position settled in the period;
- Investment in hedge restructure transaction: During the hedge restructure in
December 2004 and March 2005 quarters, $83m and $69m in cash was injected
respectively into the hedge book in these quarters to increase the value of
long-dated contracts. The entire investment in long-dated derivatives (certain
of which have now matured), for the purposes of the adjustment to earnings,
will only be taken into account when the realised portion of long-dated non-
hedge derivatives are settled, and not when the short-term contracts were
settled;
- In the September 2010 quarter the hedge book was further reduced and
contracts to the value of $1.6bn were accelerated and settled. The impact on
earnings after taxation was $1.5bn in the September 2010 quarter. In the
December 2010 quarter the hedge book was fully settled and hedge contracts to
the value of $1.1bn were accelerated and settled. The impact on earnings after
taxation was $1.1bn in the December 2010 quarter;
- The unrealised fair value change on the option component of the convertible
bonds;
- The unrealised fair value change of the warrants on shares and the embedded
derivative.
During 2010 the Group completed the elimination of its hedge book which has
resulted in full exposure to prevailing spot gold prices.
(2) Calculated on the basic weighted average number of ordinary shares.
B Adjusted gross profit
Quarter ended Nine months ended
Sep Jun Sep Sep Sep
2011 2011 2010 2011 2010
Unaudited Unaudited Unaudited Unaudited Unaudited
SA Rand million
Reconciliation
of gross profit
to adjusted gross
profit: (1)
Gross profit 5,865 4,254 2,672 13,594 4,794
Loss (gain) on
unrealised non-hedge
derivatives and
other commodity
contracts (note 4) 5 14 (11,343) 7 (9,104)
Adjusted gross
profit (loss) (1)5,870 4,268 (8,670) 13,602 (4,310)
Hedge buy-back
costs (note 4) - - 11,639 - 11,639
Adjusted gross
profit excluding
hedge buy-back
costs (1) 5,870 4,268 2,969 13,602 7,329
Quarter ended Nine months ended
Sep Jun Sep Sep Sep
2011 2011 2010 2011 2010
Unaudited Unaudited Unaudited Unaudited Unaudited
US Dollar million
Reconciliation
of gross profit
to adjusted gross
profit: (1)
Gross profit 815 627 357 1,941 637
Loss (gain)
on unrealised
non-hedge
derivatives and
other commodity
contracts (note 4) 1 2 (1,586) 1 (1,289)
Adjusted
gross profit
(loss) (1) 816 629 (1,229) 1,942 (652)
Hedge buy-back
costs (note 4) - - 1,637 - 1,637
Adjusted gross
profit excluding
hedge buy-back
costs (1) 816 629 408 1,942 986
(1) Adjusted gross profit excludes unrealised non-hedge derivatives and other
commodity contracts.
C Price received
Quarter ended
Sep Jun Sep
2011 2011 2010
Unaudited Unaudited Unaudited
SA Rand million / Metric
Gold income (note 2) 12,850 10,680 10,372
Adjusted f or non-controlling interests (349) (282) (294)
12,501 10,398 10,078
Loss on realised non-hedge derivatives
(note 4) - - (745)
Hedge buy-back costs (note 4) - - (11,639)
Associates and equity accounted joint
ventures` share of gold
income including realised non-hedge
derivatives 760 633 544
Attributable gold income including
realised non-hedge
derivatives 13,261 11,031 (1,762)
Attributable gold sold - kg / - oz (000) 33,590 33,534 36,894
Revenue price per unit - R/kg / - $/oz 394,799 328,951 (47,750)
Attributable gold income including
realised non-hedge derivatives
as above 13,261 11,031 (1,762)
Hedge buy-back costs (note 4) - - 11,639
Attributable gold income including
realised non-hedge derivatives
normalised f or hedge buy-back costs 13,261 11,031 9,877
Attributable gold sold - kg / - oz (000) 33,590 33,534 36,894
Revenue price per unit normalised for
hedge buy-back costs
- R/kg / - $/oz 394,799 328,951 267,707
Nine months ended
Sep Sep
2011 2010
Unaudited Unaudited
SA Rand million / Metric
Gold income (note 2) 33,464 28,220
Adjusted for non-controlling interests (906) (853)
32,558 27,367
Loss on realised non-hedge derivatives (note 4) - (2,072)
Hedge buy-back costs (note 4) - (11,639)
Associates and equity accounted joint ventures` share
of gold
income including realised non-hedge derivatives 1,968 1,819
Attributable gold income including realised non-hedge
derivatives 34,525 15,475
Attributable gold sold - kg / - oz (000) 99,895 104,340
Revenue price per unit - R/kg / - $/oz 345,618 148,314
Attributable gold income including realised non-hedge
derivatives as above 34,525 15,475
Hedge buy-back costs (note 4) - 11,639
Attributable gold income including realised non-hedge
derivatives
normalised for hedge buy-back costs 34,525 27,114
Attributable gold sold - kg / - oz (000) 99,895 104,340
Revenue price per unit normalised f or hedge buy-back
costs - R/kg / - $/oz 345,618 259,858
Quarter ended
Sep Jun Sep
2011 2011 2010
Unaudited Unaudited Unaudited
US Dollar million / Imperial
Gold income (note 2) 1,793 1,576 1,420
Adjusted for non-controlling interests (49) (42) (40)
1,744 1,534 1,380
Loss on realised non-hedge derivatives
(note 4) - - (101)
Hedge buy-back costs (note 4) - - (1,637)
Associates and equity accounted joint
ventures` share of gold
income including realised non-hedge
derivatives 106 94 74
Attributable gold income including
realised non-hedge
derivatives 1,850 1,628 (284)
Attributable gold sold - kg / - oz (000) 1,080 1,078 1,186
Revenue price per unit - R/kg / - $/oz 1,713 1,510 (239)
Attributable gold income including
realised non-hedge derivatives
as above 1,850 1,628 (284)
Hedge buy-back costs (note 4) - - 1,637
Attributable gold income including
realised non-hedge derivatives
normalised f or hedge buy-back costs 1,850 1,628 1,353
Attributable gold sold - kg / - oz (000) 1,080 1,078 1,186
Revenue price per unit normalised for
hedge buy-back costs
- R/kg / - $/oz 1,713 1,510 1,141
Nine months ended
Sep Sep
2011 2010
Unaudited Unaudited
US Dollar million / Imperial
Gold income (note 2) 4,791 3,791
Adjusted for non-controlling interests (130) (115)
4,661 3,676
Loss on realised non-hedge derivatives (note 4) - (277)
Hedge buy-back costs (note 4) - (1,637)
Associates and equity accounted joint ventures` share
of gold
income including realised non-hedge derivatives 282 244
Attributable gold income including realised non-hedge
derivatives 4,943 2,006
Attributable gold sold - kg / - oz (000) 3,212 3,355
Revenue price per unit - R/kg / - $/oz 1,539 598
Attributable gold income including realised non-hedge
derivatives as above 4,943 2,006
Hedge buy-back costs (note 4) - 1,637
Attributable gold income including realised non-hedge
derivatives
normalised f or hedge buy-back costs 4,943 3,643
Attributable gold sold - kg / - oz (000) 3,212 3,355
Revenue price per unit normalised for hedge buy-back
costs - R/kg / - $/oz 1,539 1,086
Rounding of figures may result in computational discrepancies.
Quarter ended
Sep Jun Sep
2011 2011 2010
Unaudited Unaudited Unaudited
SA Rand million / Metric
D Total costs
Total cash costs (note 3) 5,598 4,883 5,284
Adjusted f or non-controlling interests
and non-gold producing
companies (259) (45) (193)
Associates` and equity accounted joint
ventures` share of
total cash costs 400 345 365
Total cash costs adjusted for
non-controlling interests
and non-gold producing companies 5,739 5,183 5,456
Retrenchment costs (note 3) 26 20 23
Rehabilitation and other non-cash costs
(note 3) 80 349 106
Amortisation of tangible assets (note 3) 1,374 1,274 1,240
Amortisation of intangible assets (note 3) 4 4 4
Adjusted f or non-controlling interests
and non-gold producing companies (55) (107) (67)
Associates and equity accounted joint
ventures` share of production costs 15 17 19
Total production costs adjusted for
non-controlling
interests and non-gold producing companies 7,183 6,740 6,781
Gold produced - kg / - oz (000) 33,970 33,776 36,129
Total cash cost per unit - R/kg / -$/oz 168,935 153,441 151,007
Total production cost per unit - R/kg /
-$/oz 211,460 199,541 187,695
E EBITDA
Operating profit 4,655 3,520 1,382
Amortisation of tangible assets (note 3) 1,374 1,274 1,240
Amortisation of intangible assets (note 3) 4 4 4
Net impairments of tangible assets (note 6) 22 66 92
Loss (gain) on unrealised non-hedge
derivatives and other
commodity contracts (note 4) 5 14 (11,343)
Hedge buy-back costs (note 4) - - 11,639
Mandatory convertible bond issue
discount,
underwriting and professional fees
(note 6) - - 401
Exchange effects of equity raising - - 21
Share of associates` EBITDA 280 264 197
Impairment of investment (note 6) 124 12 -
Loss (profit) on disposal and
abandonment of assets (note 6) 21 (18) 74
Prof it on disposal of ISS International
Limited (note 6) - - -
6,485 5,136 3,706
F Interest cover
EBITDA (note E) 6,485 5,136 3,706
Finance costs (note 7) 246 250 189
Capitalised finance costs 7 - -
253 250 189
Interest cover - times 26 21 20
G Operating cash flow
Net cash inflow (outflow) from
operating activities 6,497 4,298 (7,783)
Stay-in-business capital expenditure (1,853) (1,480) (1,296)
Expenditure on intangible assets (49) - -
4,595 2,818 (9,079)
Nine months ended
Sep Sep
2011 2010
Unaudited Unaudited
SA Rand million / Metric
D Total costs
Total cash costs (note 3) 15,558 15,072
Adjusted f or non-controlling interests and non-gold
producing companies (604) (416)
Associates` and equity accounted joint ventures`
share of total cash costs 1,094 1,046
Total cash costs adjusted for non-controlling interests
and non-gold producing companies 16,048 15,702
Retrenchment costs (note 3) 73 102
Rehabilitation and other non-cash costs (note 3) 497 228
Amortisation of tangible assets (note 3) 3,942 3,680
Amortisation of intangible assets (note 3) 12 11
Adjusted f or non-controlling interests and non-gold
producing companies (217) (162)
Associates and equity accounted joint ventures` share
of production costs 48 50
Total production costs adjusted for non-controlling
interests and non-gold producing companies 20,404 19,611
Gold produced - kg / - oz (000) 100,049 104,714
Total cash cost per unit - R/kg / -$/oz 160,402 149,953
Total production cost per unit - R/kg / -$/oz 203,940 187,282
E EBITDA
Operating profit 10,712 1,808
Amortisation of tangible assets (note 3) 3,942 3,680
Amortisation of intangible assets (note 3) 12 11
Net impairments of tangible assets (note 6) 94 235
Loss (gain) on unrealised non-hedge derivatives and
other commodity contracts (note 4) 7 (9,104)
Hedge buy-back costs (note 4) - 11,639
Mandatory convertible bond issue discount,
underwriting and professional fees (note 6) - 401
Exchange effects of equity raising - 21
Share of associates` EBITDA 725 752
Impairment of investment (note 6) 136 -
Loss (profit) on disposal and abandonment of assets
(note 6) 15 109
Profit on disposal of ISS International Limited (note 6) (14) -
15,629 9,507
F Interest cover
EBITDA (note E) 15,629 9,507
Finance costs (note 7) 744 575
Capitalised finance costs 7 -
751 575
Interest cover - times 21 17
G Operating cash flow
Net cash inflow (outflow) from operating activities 14,402 (3,494)
Stay-in-business capital expenditure (4,447) (3,387)
Expenditure on intangible assets (49) -
9,906 (6,881)
Quarter ended
Sep Jun Sep
2011 2011 2010
Unaudited Unaudited Unaudited
US Dollar million / Imperial
D Total costs
Total cash costs (note 3) 784 721 724
Adjusted f or non-controlling interests
and non-gold producing
companies (36) (7) (26)
Associates` and equity accounted joint
ventures` share of
total cash costs 56 51 50
Total cash costs adjusted for
non-controlling interests
and non-gold producing companies 804 765 747
Retrenchment costs (note 3) 4 3 3
Rehabilitation and other non-cash costs
(note 3) 11 52 15
Amortisation of tangible assets (note 3) 192 188 170
Amortisation of intangible assets (note 3) 1 1 -
Adjusted f or non-controlling interests
and non-gold producing
companies (7) (16) (9)
Associates and equity accounted joint
ventures` share of
production costs 1 2 2
Total production costs adjusted for
non-controlling
interests and non-gold producing
companies 1,007 995 929
Gold produced - kg / - oz (000) 1,092 1,086 1,162
Total cash cost per unit - R/kg / -$/oz 737 705 643
Total production cost per unit - R/kg /
-$/oz 922 916 800
E EBITDA
Operating profit 648 519 178
Amortisation of tangible assets (note 3) 192 188 170
Amortisation of intangible assets (note 3) 1 1 -
Net impairments of tangible assets (note 6) 3 10 13
Loss (gain) on unrealised non-hedge
derivatives and other
commodity contracts (note 4) 1 2 (1,586)
Hedge buy-back costs (note 4) - - 1,637
Mandatory convertible bond issue
discount,
underwriting and professional fees
(note 6) - - 56
Exchange effects of equity raising - - 3
Share of associates` EBITDA 37 39 27
Impairment of investment (note 6) 16 2 -
Loss (profit) on disposal and
abandonment of assets (note 6) 4 (3) 10
Prof it on disposal of ISS International
Limited (note 6) - - -
902 758 509
F Interest cover
EBITDA (note E) 902 758 509
Finance costs (note 7) 34 37 26
Capitalised finance costs 1 - -
35 37 26
Interest cover - times 26 20 20
G Operating cash flow
Net cash inflow (outflow) from
operating activities 863 635 (1,126)
Stay-in-business capital expenditure (259) (218) (177)
Expenditure on intangible assets (6) - -
598 417 (1,303)
Nine months ended
Sep Sep
2011 2010
Unaudited Unaudited
US Dollar million / Imperial
D Total costs
Total cash costs (note 3) 2,231 2,026
Adjusted f or non-controlling interests and non-gold
producing companies (85) (56)
Associates` and equity accounted joint ventures`
share of total cash costs 157 141
Total cash costs adjusted for non-controlling interests
and non-gold producing companies 2,303 2,110
Retrenchment costs (note 3) 10 14
Rehabilitation and other non-cash costs (note 3) 72 31
Amortisation of tangible assets (note 3) 566 494
Amortisation of intangible assets (note 3) 2 1
Adjusted f or non-controlling interests and non-gold
producing companies (31) (22)
Associates and equity accounted joint ventures` share
of production costs 6 7
Total production costs adjusted for non-controlling
interests and non-gold producing companies 2,928 2,636
Gold produced - kg / - oz (000) 3,217 3,367
Total cash cost per unit - R/kg / -$/oz 716 627
Total production cost per unit - R/kg / -$/oz 910 783
E EBITDA
Operating profit 1,530 233
Amortisation of tangible assets (note 3) 565 494
Amortisation of intangible assets (note 3) 2 1
Net impairments of tangible assets (note 6) 14 32
Loss (gain) on unrealised non-hedge derivatives and
other commodity contracts (note 4) 1 (1,289)
Hedge buy-back costs (note 4) - 1,637
Mandatory convertible bond issue discount,
underwriting and professional fees (note 6) - 56
Exchange effects of equity raising - 3
Share of associates` EBITDA 103 101
Impairment of investment (note 6) 18 -
Loss (profit) on disposal and abandonment of assets
(note 6) 2 15
Prof it on disposal of ISS International Limited (note 6) (2) -
2,234 1,278
F Interest cover
EBITDA (note E) 2,234 1,278
Finance costs (note 7) 107 78
Capitalised finance costs 1 -
108 78
Interest cover - times 21 16
G Operating cash flow
Net cash inflow (outflow) from operating activities 2,011 (560)
Stay-in-business capital expenditure (636) (455)
Expenditure on intangible assets (6) -
1,369 (1,015)
As at As at As at As at
Sep Jun Dec Sep
2011 2011 2010 2010
Unaudited Unaudited Unaudited Unaudited
SA Rand million
H Net asset value - cents
per share
Total equity 38,746 32,247 27,023 27,355
Mandatory convertible bonds 6,253 5,270 5,739 5,860
44,999 37,517 32,762 33,215
Number of ordinary shares
in issue - million (note 10) 385 385 384 384
Net asset value - cents
per share 11,680 9,744 8,532 8,654
Total equity 38,746 32,247 27,023 27,355
Mandatory convertible
bonds 6,253 5,270 5,739 5,860
Intangible assets (1,547) (1,357) (1,277) (1,296)
43,452 36,160 31,485 31,919
Number of ordinary shares
in issue - million (note 10) 385 385 384 384
Net tangible asset value -
cents per share 11,278 9,392 8,199 8,317
I Net debt
Borrowings - long-term
portion 13,538 11,254 11,148 11,503
Borrowings - short-term
portion 369 193 876 1,864
Total borrowings (1) 13,907 11,447 12,024 13,367
Corporate of f ice lease (259) (259) (259) (259)
Unamortised portion on the
convertible and rated bonds 585 679 757 696
Cash restricted f or use (483) (379) (283) (298)
Cash and cash equivalents (8,717) (5,656) (3,776) (9,313)
Net debt excluding
mandatory convertible bonds 5,033 5,832 8,463 4,193
As at As at As at As at
Sep Jun Dec Sep
2011 2011 2010 2010
Unaudited Unaudited Unaudited Unaudited
US Dollar million
H Net asset value - cents
per share
Total equity 4,778 4,785 4,113 3,930
Mandatory convertible bonds 771 782 874 842
5,549 5,567 4,987 4,772
Number of ordinary shares
in issue - million (note 10) 385 385 384 384
Net asset value - cents
per share 1,440 1,446 1,299 1,243
Total equity 4,778 4,785 4,113 3,930
Mandatory convertible bonds 771 782 874 842
Intangible assets (191) (201) (194) (186)
5,358 5,366 4,793 4,586
Number of ordinary shares
in issue - million (note 10) 385 385 384 384
Net tangible asset value -
cents per share 1,391 1,394 1,248 1,195
I Net debt
Borrowings - long-term
portion 1,670 1,670 1,697 1,653
Borrowings - short-term
portion 45 28 133 268
Total borrowings (1) 1,715 1,698 1,830 1,921
Corporate of f ice lease (32) (38) (39) (37)
Unamortised portion on the
convertible and rated bonds 72 101 115 100
Cash restricted f or use (60) (56) (43) (43)
Cash and cash equivalents (1,075) (839) (575) (1,338)
Net debt excluding
mandatory convertible bonds 620 866 1,288 603
(1) Borrowings exclude the mandatory convertible bonds (note H).
Rounding of figures may result in computational discrepancies.
IMPERIAL OPERATING RESULTS Continental
South Africa Africa Australasia
QUARTER ENDED
SEPTEMBER 2011
UNDERGROUND
OPERATION
Area mined - 000 ft2 2,625 - -
Mined - 000 tons 1,691 526 312
Milled /
Treated - 000 tons 1,575 547 294
Yield - oz/t 0.230 0.137 0.062
Gold produced - oz (000) 362 75 18
SURFACE AND
DUMP
RECLAMATION
Milled /
Treated - 000 tons 2,725 - -
Yield - oz/t 0.012 - -
Gold produced - oz (000) 32 3 -
OPEN-PIT
OPERATION
Volume mined - 000 bcy - 16,982 225
Mined - 000 tons - 34,541 240
Treated - 000 tons - 6,684 725
Stripping
ratio - ratio - 5.43 35.22
Yield - oz/t - 0.049 0.044
Gold produced - oz (000) - 325 32
HEAP LEACH
OPERATION
Mined - 000 tons - 1,578 -
Placed - 000 tons - 288 -
Stripping
ratio - ratio - 9.09 -
Yield - oz/t - 0.031 -
Gold placed - oz (000) - 9 -
Gold produced - oz (000) - 8 -
PRODUCTIVITY
PER EMPLOYEE
Actual - oz 5.67 11.77 32.05
TOTAL
Subsidiaries`
gold produced - oz (000) 394 348 50
Joint
ventures`
gold produced - oz (000) - 63 -
Attributable
gold produced - oz (000) 394 411 50
Minority gold
produced - oz (000) - 10 -
Subsidiaries`
gold sold - oz (000) 393 324 55
Joint
ventures`
gold sold - oz (000) - 62 -
Attributable
gold sold - oz (000) 393 386 55
Minority gold
sold - oz (000) - 11 -
Spot price - $/oz 1,705 1,705 1,705
Price received- $/oz sold 1,718 1,724 1,683
Total cash
costs - $/oz produced 757 739 1,570
Total
production
costs - $/oz produced 981 884 1,743
IMPERIAL OPERATING RESULTS
Americas Total group
QUARTER ENDED SEPTEMBER 2011
UNDERGROUND OPERATION
Area mined - 000 ft2 - 2,625
Mined - 000 tons 558 3,088
Milled / Treated - 000 tons 616 3,032
Yield - oz/t 0.194 0.189
Gold produced - oz (000) 119 574
SURFACE AND DUMP RECLAMATION
Milled / Treated - 000 tons - 2,725
Yield - oz/t - 0.013
Gold produced - oz (000) - 35
OPEN-PIT OPERATION
Volume mined - 000 bcy - 17,207
Mined - 000 tons 7,459 42,240
Treated - 000 tons 254 7,663
Stripping ratio - ratio 22.71 6.42
Yield - oz/t 0.176 0.052
Gold produced - oz (000) 45 402
HEAP LEACH OPERATION
Mined - 000 tons 19,132 20,710
Placed - 000 tons 5,920 6,209
Stripping ratio - ratio 2.40 2.58
Yield - oz/t 0.012 0.013
Gold placed - oz (000) 74 83
Gold produced - oz (000) 74 81
PRODUCTIVITY PER EMPLOYEE
Actual - oz 21.94 9.36
TOTAL
Subsidiaries` gold produced - oz (000) 238 1,029
Joint ventures` gold produced - oz (000) - 63
Attributable gold produced - oz (000) 238 1,092
Minority gold produced - oz (000) 19 29
Subsidiaries` gold sold - oz (000) 246 1,018
Joint ventures` gold sold - oz (000) - 62
Attributable gold sold - oz (000) 246 1,080
Minority gold sold - oz (000) 21 32
Spot price - $/oz 1,705 1,705
Price received - $/oz sold 1,697 1,713
Total cash costs - $/oz produced 524 737
Total production costs - $/oz produced 710 922
Rounding of figures may result in computational discrepancies.
FINANCIAL RESULTS
South Africa Continental Australasia Americas
QUARTER ENDED Africa
SEPTEMBER 2011 $`m
Gold income 675 684 93 448
Cash costs (320) (315) (79) (183)
By-products revenue 22 2 - 32
Total cash costs (298) (313) (79) (151)
Retrenchment costs (2) (1) - (1)
Rehabilitation and
other non-cash costs (2) (5) - (5)
Amortisation of
assets (84) (55) (9) (44)
Total production
costs (386) (373) (87) (201)
Inventory change - 14 (5) 5
Cost of sales (386) (359) (92) (195)
Adjusted gross
profit (loss) 290 325 - 253
Unrealised non-hedge
derivatives and
other
commodity contracts - - - (1)
Gross profit (loss) 290 325 - 252
Corporate and other
costs (3) - - (9)
Exploration - (18) (16) (32)
Intercompany
transactions - (11) (1) (1)
Special items (4) (13) 11 1
Operating profit
(loss) 282 282 (6) 211
Net finance (costs)
income, unwinding of
obligations and fair
value adjustments (1) 2 2 (2)
Exchange gain (loss) - (1) - 12
Share of equity
accounted
investments profit - - - (8)
Profit (loss) before
taxation 280 283 (4) 213
Taxation (96) (102) 1 (27)
Profit (loss) for
the period 184 182 (3) 187
Equity shareholders 184 178 (3) 180
Non-controlling
interests - 4 - 7
Operating profit
(loss) 282 282 (6) 211
Unrealised non-hedge
derivatives and
other
commodity contracts - - - 1
Intercompany
transactions - 11 1 1
Special items 5 10 - -
Share of associates`
EBIT - - - (8)
EBIT 287 303 (5) 204
Amortisation of
assets 84 55 9 44
Share of associates`
amortisation - - - -
EBITDA 371 358 4 248
Profit (loss)
attributable to
equity shareholders 184 178 (3) 180
Special items 5 10 - -
Share of associates`
special items - - - -
Taxation on items
above (2) - - -
Headline earnings
(loss) 187 187 (3) 180
Unrealised non-hedge
derivatives and
other
commodity contracts - - - 1
Deferred tax on
unrealised non-hedge
derivatives and
other commodity
contracts - - - -
Fair value
adjustment on option
component
of convertible bonds - - - -
Fair value
adjustment on
mandatory
convertible bonds - - - -
Adjusted headline
earnings (loss) 187 187 (3) 181
Ore reserve
development capital 71 13 5 17
Stay-in-business
capital 43 66 2 40
Project capital 26 22 25 68
Total capital
expenditure 140 101 32 125
Less equity
FINANCIAL RESULTS Corporate Sub-total accounted Total group
QUARTER ENDED and other investments
SEPTEMBER 2011 $`m
Gold income - 1,899 (106) 1,793
Cash costs - (897) 56 (841)
By-products revenue - 57 - 57
Total cash costs - (840) 56 (784)
Retrenchment costs - (4) - (4)
Rehabilitation and
other non-cash costs - (11) - (11)
Amortisation of assets (3) (195) 2 (193)
Total production costs (3) (1,050) 58 (992)
Inventory change - 15 - 14
Cost of sales (3) (1,035) 58 (977)
Adjusted gross profit
(loss) (4) 864 (48) 816
Unrealised non-hedge
derivatives and other
commodity contracts - (1) - (1)
Gross profit (loss) (4) 863 (48) 815
Corporate and other
costs (66) (78) - (78)
Exploration (11) (78) 2 (76)
Intercompany
transactions 13 - - -
Special items (8) (13) - (13)
Operating profit (loss) (75) 694 (47) 648
Net finance (costs)
income, unwinding of
obligations and fair
value adjustments (17) (15) (3) (18)
Exchange gain (loss) 5 16 - 15
Share of equity
accounted investments
profit (2) (10) 34 24
Profit (loss) before
taxation (88) 685 (16) 669
Taxation 4 (220) 16 (204)
Profit (loss) for the
period (84) 465 - 465
Equity shareholders (83) 456 - 456
Non-controlling
interests (1) 9 - 9
Operating profit (loss) (75) 694 (47) 648
Unrealised non-hedge
derivatives and other
commodity contracts - 1 - 1
Intercompany
transactions (13) - - -
Special items 8 22 - 22
Share of associates`
EBIT (2) (10) 47 36
EBIT (82) 707 - 707
Amortisation of assets 3 195 (2) 193
Share of associates`
amortisation - - 2 2
EBITDA (79) 902 - 902
Profit (loss)
attributable to equity
shareholders (83) 456 - 456
Special items 8 22 - 22
Share of associates`
special items - - - -
Taxation on items above - (2) - (2)
Headline earnings
(loss) (75) 476 - 476
Unrealised non-hedge
derivatives and other
commodity contracts - 1 - 1
Deferred tax on
unrealised non-hedge
derivatives and other
commodity contracts - - - -
Fair value adjustment
on option component
of convertible bonds (11) (11) - (11)
Fair value adjustment
on mandatory
convertible bonds (9) (9) - (9)
Adjusted headline
earnings (loss) (95) 457 - 457
Ore reserve
development capital - 106 - 106
Stay-in-business
capital 10 161 (2) 159
Project capital - 141 (18) 123
Total capital
expenditure 10 408 (20) 388
Rounding of figures may result in computational discrepancies.
IMPERIAL
OPERATING
RESULTS Continental
South Africa Africa Australasia
QUARTER ENDED
JUNE 2011
UNDERGROUND
OPERATION
Area mined - 000 ft2 2,962 - -
Mined - 000 tons 1,834 486 261
Milled /
Treated - 000 tons 1,651 541 243
Yield - oz/t 0.233 0.151 0.092
Gold produced - oz (000) 384 82 22
SURFACE AND
DUMP
RECLAMATION
Milled /
Treated - 000 tons 3,089 - -
Yield - oz/t 0.015 - -
Gold produced - oz (000) 48 1 -
OPEN-PIT
OPERATION
Volume mined - 000 bcy - 18,444 172
Mined - 000 tons - 36,920 395
Treated - 000 tons - 5,872 736
Stripping
ratio - ratio - 4.63 7.57
Yield - oz/t - 0.049 0.052
Gold produced - oz (000) - 288 38
HEAP LEACH
OPERATION
Mined - 000 tons - 1,925 -
Placed - 000 tons - 317 -
Stripping
ratio - ratio - 6.31 -
Yield - oz/t - 0.032 -
Gold placed - oz (000) - 10 -
Gold produced - oz (000) - 6 -
PRODUCTIVITY
PER EMPLOYEE
Actual - oz 6.21 11.01 40.57
TOTAL
Subsidiaries`
gold produced - oz (000) 431 313 61
Joint
ventures`
gold produced - oz (000) - 64 -
Attributable
gold produced - oz (000) 431 377 61
Minority gold
produced - oz (000) - 12 -
Subsidiaries`
gold sold - oz (000) 431 310 62
Joint
ventures`
gold sold - oz (000) - 62 -
Attributable
gold sold - oz (000) 431 372 62
Minority gold
sold - oz (000) - 12 -
Spot price - $/oz 1,496 1,496 1,496
Price received- $/oz sold 1,516 1,506 1,498
Total cash
costs - $/oz produced 688 705 1,595
Total
production
costs - $/oz produced 905 861 1,745
IMPERIAL OPERATING RESULTS
Americas Total group
QUARTER ENDED JUNE 2011
UNDERGROUND OPERATION
Area mined - 000 ft2 - 2,962
Mined - 000 tons 571 3,152
Milled / Treated - 000 tons 550 2,983
Yield - oz/t 0.181 0.197
Gold produced - oz (000) 99 587
SURFACE AND DUMP RECLAMATION
Milled / Treated - 000 tons - 3,089
Yield - oz/t - 0.016
Gold produced - oz (000) - 49
OPEN-PIT OPERATION
Volume mined - 000 bcy - 18,616
Mined - 000 tons 7,611 44,926
Treated - 000 tons 260 6,867
Stripping ratio - ratio 23.32 5.49
Yield - oz/t 0.167 0.054
Gold produced - oz (000) 43 370
HEAP LEACH OPERATION
Mined - 000 tons 17,947 19,872
Placed - 000 tons 5,980 6,298
Stripping ratio - ratio 2.07 2.25
Yield - oz/t 0.011 0.012
Gold placed - oz (000) 68 78
Gold produced - oz (000) 74 80
PRODUCTIVITY PER EMPLOYEE
Actual - oz 20.73 9.39
TOTAL
Subsidiaries` gold produced - oz (000) 216 1,022
Joint ventures` gold produced - oz (000) - 64
Attributable gold produced - oz (000) 216 1,086
Minority gold produced - oz (000) 18 30
Subsidiaries` gold sold - oz (000) 213 1,016
Joint ventures` gold sold - oz (000) - 62
Attributable gold sold - oz (000) 213 1,078
Minority gold sold - oz (000) 19 30
Spot price - $/oz 1,496 1,496
Price received - $/oz sold 1,507 1,510
Total cash costs - $/oz produced 487 705
Total production costs - $/oz produced 794 916
Rounding of figures may result in computational discrepancies.
FINANCIAL RESULTS
South Africa Continental Australasia Americas
QUARTER ENDED JUNE
2011 $`m Africa
Gold income 654 578 93 344
Cash costs (330) (277) (97) (160)
By-products revenue 33 2 - 32
Total cash costs (297) (275) (97) (129)
Retrenchment costs (2) - - (1)
Rehabilitation and
other non-cash costs (2) (8) (1) (41)
Amortisation of
assets (89) (52) (8) (38)
Total production costs (390) (335) (106) (208)
Inventory change - 1 3 15
Cost of sales (390) (334) (103) (193)
Adjusted gross
profit (loss) 264 244 (10) 151
Unrealised non-hedge
derivatives and
other
commodity contracts - - - (3)
Gross profit (loss) 264 245 (10) 149
Corporate and other
costs (3) (4) - (10)
Exploration - (13) (12) (30)
Intercompany
transactions - (11) - (1)
Special items (7) 581 16 1
Operating profit
(loss) 253 797 (6) 109
Net finance (costs)
income, unwinding of
obligations and fair
value adjustments (1) (2) - (1)
Exchange (loss) gain - (4) - (2)
Share of equity
accounted
investments profit - - - (3)
Profit (loss) before
taxation 252 792 (6) 104
Taxation (79) (71) 1 (12)
Profit (loss) for
the period 174 722 (5) 92
Equity shareholders 174 717 (5) 92
Non-controlling
interests - 4 - -
Operating profit
(loss) 253 797 (6) 109
Unrealised non-hedge
derivatives and
other
commodity contracts - - - 3
Intercompany
transactions - 11 - 1
Special items 8 (550) (3) (1)
Share of associates`
EBIT - - - (3)
EBIT 261 258 (9) 109
Amortisation of
assets 89 52 8 38
Share of associates`
amortisation - - - -
EBITDA 350 310 (1) 147
Profit (loss)
attributable to
equity shareholders 174 717 (5) 92
Special items 8 (550) (3) (1)
Share of associates`
special items - - - -
Taxation on items
above (5) - 1 -
Headline earnings
(loss) 177 167 (7) 91
Unrealised non-hedge
derivatives and
other
commodity contracts - - - 3
Deferred tax on
unrealised non-hedge
derivatives and
other commodity
contracts - - - -
Fair value
adjustment on option
component of
convertible bonds - - - -
Fair value loss on
mandatory
convertible
bonds - - - -
Adjusted headline
earnings (loss) 177 167 (7) 93
Ore reserve
development capital 68 12 1 17
Stay-in-business
capital 29 63 2 27
Project capital 19 30 16 61
Total capital
expenditure 116 105 19 105
FINANCIAL RESULTS Less equity
Corporate Sub-total accounted Total group
QUARTER ENDED JUNE
2011 $`m and other investments
Gold income - 1,669 (94) 1,576
Cash costs 25 (839) 51 (788)
By-products revenue 1 68 - 67
Total cash costs 26 (772) 51 (721)
Retrenchment costs - (3) - (3)
Rehabilitation and
other non-cash costs - (52) - (52)
Amortisation of assets (4) (191) 2 (189)
Total production costs 21 (1,017) 53 (964)
Inventory change - 18 (1) 17
Cost of sales 21 (999) 52 (947)
Adjusted gross profit
(loss) 21 670 (41) 629
Unrealised non-hedge
derivatives and other
commodity contracts - (2) - (2)
Gross profit (loss) 21 668 (41) 627
Corporate and other
costs (57) (74) - (74)
Exploration (10) (64) 1 (63)
Intercompany
transactions 12 - - -
Special items (562) 29 - 29
Operating profit (loss) (595) 559 (40) 519
Net finance (costs)
income, unwinding of
obligations and fair
value adjustments 101 97 - 98
Exchange (loss) gain (1) (6) 1 (6)
Share of equity
accounted investments
profit (3) (5) 26 21
Profit (loss) before
taxation (497) 645 (13) 632
Taxation (2) (162) 13 (149)
Profit (loss) for the
period (499) 483 - 483
Equity shareholders (508) 470 - 470
Non-controlling
interests 9 13 - 13
Operating profit (loss) (595) 559 (40) 519
Unrealised non-hedge
derivatives and other
commodity contracts - 2 - 2
Intercompany
transactions (12) - - -
Special items 555 9 - 9
Share of associates`
EBIT - (3) 40 37
EBIT (52) 567 - 567
Amortisation of assets 4 191 (2) 189
Share of associates`
amortisation - - 2 2
EBITDA (48) 758 - 758
Profit (loss)
attributable to equity
shareholders (508) 470 - 470
Special items 555 9 - 9
Share of associates`
special items 2 2 - 2
Taxation on items above - (4) - (4)
Headline earnings
(loss) 50 477 - 477
Unrealised non-hedge
derivatives and other
commodity contracts - 2 - 2
Deferred tax on
unrealised non-hedge
derivatives and other
commodity contracts - - - -
Fair value adjustment
on option component of
convertible bonds (73) (73) - (73)
Fair value loss on
mandatory convertible
bonds (64) (64) - (64)
Adjusted headline
earnings (loss) (88) 342 - 342
Ore reserve
development capital - 98 - 98
Stay-in-business
capital 1 122 (1) 121
Project capital - 126 (22) 104
Total capital
expenditure 1 346 (23) 323
Rounding of figures may result in computational discrepancies.
IMPERIAL OPERATING RESULTS Continental
South Africa Africa Australasia
QUARTER ENDED
SEPTEMBER 2010
UNDERGROUND OPERATION
Area mined - 000 ft2 3,221 - -
Mined - 000 tons 2,013 452 117
Milled /
Treated - 000 tons 1,877 480 144
Yield - oz/t 0.227 0.147 0.092
Gold produced - oz (000) 425 71 13
SURFACE AND
DUMP
RECLAMATION
Milled /
Treated - 000 tons 2,792 314 -
Yield - oz/t 0.019 0.015 -
Gold produced - oz (000) 53 5 -
OPEN-PIT
OPERATION
Volume mined - 000 bcy - 14,492 1,748
Mined - 000 tons - 29,361 4,053
Treated - 000 tons - 5,873 862
Stripping
ratio - ratio - 4.54 3.86
Yield - oz/t - 0.049 0.092
Gold produced - oz (000) - 288 80
HEAP LEACH
OPERATION
Mined - 000 tons - 1,661 -
Placed - 000 tons - 256 -
Stripping
ratio - ratio - 8.43 -
Yield - oz/t - 0.030 -
Gold placed - oz (000) - 8 -
Gold produced - oz (000) - 10 -
PRODUCTIVITY
PER EMPLOYEE
Actual - oz 6.17 11.19 62.31
TOTAL
Subsidiaries`
gold produced - oz (000) 478 310 93
Joint
ventures`
gold produced - oz (000) - 63 -
Attributable
gold produced - oz (000) 478 373 93
Minority gold
produced - oz (000) - 11 -
Subsidiaries`
gold sold - oz (000) 513 306 87
Joint
ventures`
gold sold - oz (000) - 61 -
Attributable
gold sold - oz (000) 513 367 87
Minority gold
sold - oz (000) - 11 -
Spot price - $/oz 1,226 1,226 1,226
Price received- $/oz sold (287) (62) (405)
Price
received
excluding
hedge
buy-back costs- $/oz sold 1,135 1,152 1,141
Total cash
costs - $/oz produced 594 725 1,064
Total
production
costs - $/oz produced 772 879 1,142
IMPERIAL OPERATING RESULTS
Americas Total group
QUARTER ENDED SEPTEMBER 2010
UNDERGROUND OPERATION
Area mined - 000 ft2 - 3,221
Mined - 000 tons 570 3,151
Milled / Treated - 000 tons 564 3,065
Yield - oz/t 0.193 0.202
Gold produced - oz (000) 109 618
SURFACE AND DUMP RECLAMATION
Milled / Treated - 000 tons - 3,106
Yield - oz/t - 0.018
Gold produced - oz (000) - 57
OPEN-PIT OPERATION
Volume mined - 000 bcy - 16,240
Mined - 000 tons 8,231 41,646
Treated - 000 tons 271 7,006
Stripping ratio - ratio 26.04 5.47
Yield - oz/t 0.173 0.059
Gold produced - oz (000) 47 414
HEAP LEACH OPERATION
Mined - 000 tons 16,507 18,168
Placed - 000 tons 6,017 6,273
Stripping ratio - ratio 1.87 2.07
Yield - oz/t 0.014 0.014
Gold placed - oz (000) 82 90
Gold produced - oz (000) 62 72
PRODUCTIVITY PER EMPLOYEE
Actual - oz 23.15 9.55
TOTAL
Subsidiaries` gold produced - oz (000) 218 1,099
Joint ventures` gold produced - oz (000) - 63
Attributable gold produced - oz (000) 218 1,162
Minority gold produced - oz (000) 24 35
Subsidiaries` gold sold - oz (000) 220 1,125
Joint ventures` gold sold - oz (000) - 61
Attributable gold sold - oz (000) 220 1,186
Minority gold sold - oz (000) 25 36
Spot price - $/oz 1,226 1,226
Price received - $/oz sold (359) (239)
Price received excluding hedge
buy-back costs - $/oz sold 1,137 1,141
Total cash costs - $/oz produced 433 643
Total production costs - $/oz produced 573 800
Rounding of figures may result in computational discrepancies.
FINANCIAL RESULTS Continental
South Africa Africa Australasia Americas
QUARTER ENDED
SEPTEMBER 2010 $`m
Gold income received
(1) 582 436 99 277
Cash costs (293) (279) (99) (139)
By-products revenue 10 1 - 19
Total cash costs (284) (278) (99) (119)
Retrenchment costs (3) - - (1)
Rehabilitation and
other non-cash costs (2) (13) - (1)
Amortisation of
assets (81) (46) (7) (36)
Total production
costs (369) (336) (106) (157)
Inventory change (24) 9 2 14
Cost of sales (393) (327) (104) (143)
Adjusted gross
profit (loss)
excluding
hedge buy-back costs 189 109 (5) 134
Hedge buy-back costs (729) (446) (134) (328)
Adjusted gross
(loss) profit (540) (337) (139) (194)
Unrealised non-hedge
derivatives and
other
commodity contracts 915 251 - 420
Gross profit (loss) 375 (86) (139) 226
Corporate and other
costs (3) (4) - (9)
Exploration - (11) (14) (23)
Intercompany
transactions - (12) - (1)
Special items (8) (1) 2 -
Operating profit
(loss) 365 (113) (152) 193
Net finance (costs)
income, unwinding of
obligations and fair
value adjustments (1) (2) - 1
Exchange gain (loss) - (8) - (6)
Share of equity
accounted
investments profit - - - -
Profit (loss) before
taxation 363 (124) (152) 187
Taxation 18 (32) 3 (17)
Profit (loss) for
the period 381 (156) (149) 170
Equity shareholders 381 (160) (149) 161
Non-controlling
interests - 3 - 9
Operating profit
(loss) 365 (113) (152) 193
Unrealised non-hedge
derivatives and
other
commodity contracts (915) (251) - (420)
Hedge buy-back costs 729 446 134 328
Intercompany
transactions - 12 - 1
Special items 20 - - -
Share of associates`
EBIT - - - -
EBIT 198 95 (17) 102
Amortisation of
assets 81 46 7 36
Share of associates`
amortisation - - - -
EBITDA 280 140 (10) 139
Profit (loss)
attributable to
equity shareholders 381 (160) (149) 161
Special items 20 - - -
Share of associates`
special items - - - -
Taxation on items
above (6) - - (1)
Headline earnings
(loss) 395 (159) (149) 160
Unrealised non-hedge
derivatives and
other
commodity contracts (915) (251) - (420)
Deferred tax on
unrealised non-hedge
derivatives and
other commodity
contracts 301 - - -
Fair value
adjustment on option
component
of convertible bonds - - - -
Fair value loss on
mandatory
convertible - - - -
Hedge buy-back and
related costs
net of taxation 523 443 134 328
Adjusted headline
earnings (loss)
excluding
hedge buy-back costs 304 33 (15) 69
Ore reserve
development capital 65 9 4 14
Stay-in-business
capital 22 33 4 25
Project capital 13 17 2 43
Total capital
expenditure 100 60 10 82
Less equity
FINANCIAL RESULTS Corporate
Sub-total accounted Total group
and other investments
QUARTER ENDED
SEPTEMBER 2010 $`m
Gold income received
(1) - 1,394 (75) 1,319
Cash costs 6 (805) 50 (754)
By-products revenue 1 31 - 31
Total cash costs 7 (774) 50 (724)
Retrenchment costs - (3) - (3)
Rehabilitation and
other non-cash costs - (15) - (15)
Amortisation of assets (2) (173) 2 (170)
Total production costs 4 (965) 53 (912)
Inventory change - 2 (1) 1
Cost of sales 4 (963) 51 (911)
Adjusted gross profit
(loss) excluding
hedge buy-back costs 4 431 (23) 408
Hedge buy-back costs - (1,637) - (1,637)
Adjusted gross (loss)
profit 4 (1,206) (23) (1,229)
Unrealised non-hedge
derivatives and other
commodity contracts - 1,586 - 1,586
Gross profit (loss) 4 380 (23) 357
Corporate and other
costs (43) (58) - (59)
Exploration (13) (61) - (60)
Intercompany
transactions 13 - - -
Special items (52) (58) (1) (60)
Operating profit (loss) (90) 202 (24) 178
Net finance (costs)
income, unwinding of
obligations and fair
value adjustments (74) (78) - (78)
Exchange gain (loss) (4) (19) 3 (16)
Share of equity
accounted investments
profit 12 12 8 21
Profit (loss) before
taxation (156) 118 (13) 106
Taxation (24) (53) 13 (41)
Profit (loss) for the
period (180) 65 - 65
Equity shareholders (183) 51 - 51
Non-controlling
interests 3 15 - 14
Operating profit (loss) (90) 202 (24) 178
Unrealised non-hedge
derivatives and other
commodity contracts - (1,586) - (1,586)
Hedge buy-back costs 59 1,696 - 1,696
Intercompany
transactions (13) - - -
Special items 1 22 1 23
Share of associates`
EBIT 2 2 23 25
EBIT (42) 336 - 336
Amortisation of assets 2 173 (2) 170
Share of associates`
amortisation - - 2 2
EBITDA (39) 509 - 509
Profit (loss)
attributable to equity
shareholders (183) 51 - 51
Special items 1 22 1 23
Share of associates`
special items (10) (10) (1) (12)
Taxation on items above - (7) - (7)
Headline earnings
(loss) (192) 55 - 55
Unrealised non-hedge
derivatives and other
commodity contracts - (1,586) - (1,586)
Deferred tax on
unrealised non-hedge
derivatives and other
commodity contracts - 301 - 301
Fair value adjustment
on option component
of convertible bonds 24 24 - 24
Fair value loss on
mandatory convertible 22 22 - 22
Hedge buy-back and
related costs
net of taxation 59 1,487 - 1,487
Adjusted headline
earnings (loss)
excluding
hedge buy-back costs (86) 303 - 303
Ore reserve
development capital - 93 - 93
Stay-in-business
capital 1 85 (1) 84
Project capital - 75 (10) 65
Total capital
expenditure 1 253 (11) 242
(1) Gold income received is gold income per income statement and loss on
realised non-hedge derivatives (note 4).
Rounding of figures may result in computational discrepancies.
IMPERIAL
OPERATING
RESULTS Continental
South Africa Africa Australasia
NINE MONTHS ENDED
SEPTEMBER 2011
UNDERGROUND OPERATION
Area mined - 000 ft2 8,285 - -
Mined - 000 tons 5,244 1,503 800
Milled /
Treated - 000 tons 4,758 1,631 802
Yield - oz/t 0.231 0.139 0.102
Gold produced - oz (000) 1,098 226 81
SURFACE AND
DUMP
RECLAMATION
Milled /
Treated - 000 tons 8,774 - -
Yield - oz/t 0.015 - -
Gold produced - oz (000) 128 5 -
OPEN-PIT
OPERATION
Volume mined - 000 bcy - 51,879 1,842
Mined - 000 tons - 104,163 4,025
Treated - 000 tons - 18,735 2,107
Stripping
ratio - ratio - 4.44 6.62
Yield - oz/t - 0.048 0.048
Gold produced - oz (000) - 898 102
HEAP LEACH
OPERATION
Mined - 000 tons - 5,143 -
Placed - 000 tons - 910 -
Stripping
ratio - ratio - 6.92 -
Yield - oz/t - 0.031 -
Gold placed - oz (000) - 28 -
Gold produced - oz (000) - 21 -
PRODUCTIVITY
PER EMPLOYEE
Actual - oz 5.89 11.21 37.82
TOTAL
Subsidiaries`
gold produced - oz (000) 1,226 965 183
Joint
ventures`
gold produced - oz (000) - 186 -
Attributable
gold produced - oz (000) 1,226 1,151 183
Minority gold
produced - oz (000) - 33 -
Subsidiaries`
gold sold - oz (000) 1,225 955 187
Joint
ventures`
gold sold - oz (000) - 184 -
Attributable
gold sold - oz (000) 1,225 1,139 187
Minority gold
sold - oz (000) - 35 -
Spot price - $/oz 1,534 1,534 1,534
Price received- $/oz sold 1,542 1,540 1,511
Total cash
costs - $/oz produced 693 753 1,414
Total
production
costs - $/oz produced 918 902 1,570
IMPERIAL OPERATING RESULTS
Americas Total group
NINE MONTHS ENDED SEPTEMBER 2011
UNDERGROUND OPERATION
Area mined - 000 ft2 - 8,285
Mined - 000 tons 1,644 9,190
Milled / Treated - 000 tons 1,705 8,896
Yield - oz/t 0.189 0.194
Gold produced - oz (000) 323 1,729
SURFACE AND DUMP RECLAMATION
Milled / Treated - 000 tons - 8,774
Yield - oz/t - 0.015
Gold produced - oz (000) - 133
OPEN-PIT OPERATION
Volume mined - 000 bcy - 53,721
Mined - 000 tons 22,303 130,490
Treated - 000 tons 758 21,600
Stripping ratio - ratio 23.45 5.33
Yield - oz/t 0.167 0.052
Gold produced - oz (000) 127 1,126
HEAP LEACH OPERATION
Mined - 000 tons 54,360 59,503
Placed - 000 tons 17,649 18,559
Stripping ratio - ratio 2.18 2.35
Yield - oz/t 0.012 0.013
Gold placed - oz (000) 206 234
Gold produced - oz (000) 208 229
PRODUCTIVITY PER EMPLOYEE
Actual - oz 20.93 9.27
TOTAL
Subsidiaries` gold produced - oz (000) 657 3,031
Joint ventures` gold produced - oz (000) - 186
Attributable gold produced - oz (000) 657 3,217
Minority gold produced - oz (000) 58 91
Subsidiaries` gold sold - oz (000) 661 3,028
Joint ventures` gold sold - oz (000) - 184
Attributable gold sold - oz (000) 661 3,212
Minority gold sold - oz (000) 58 93
Spot price - $/oz 1,534 1,534
Price received - $/oz sold 1,541 1,539
Total cash costs - $/oz produced 498 716
Total production costs - $/oz produced 720 910
Rounding of figures may result in computational discrepancies.
FINANCIAL RESULTS -
NINE MONTHS Continental
South Africa Africa Australasia Americas
ENDED SEPTEMBER 2011 $`m
Gold income 1,889 1,807 282 1,095
Cash costs (932) (898) (260) (493)
By-products revenue 82 6 1 86
Total cash costs (850) (893) (259) (407)
Retrenchment costs (7) (1) - (2)
Rehabilitation and
other non-cash costs (6) (20) (1) (46)
Amortisation of
assets (263) (152) (28) (122)
Total production
costs (1,126) (1,067) (287) (577)
Inventory change - (9) - 42
Cost of sales (1,126) (1,076) (287) (536)
Adjusted gross
profit (loss) 763 731 (5) 560
Unrealised non-hedge
derivatives and
other
commodity contracts - - - (1)
Gross profit (loss) 763 732 (5) 558
Corporate and other
costs (9) (7) (2) (33)
Exploration (1) (51) (38) (81)
Intercompany
transactions - (34) (1) (2)
Special items (12) 561 35 2
Operating profit
(loss) 742 1,201 (12) 445
Net finance (costs)
income, unwinding of
obligations and fair
value adjustments (4) (1) 2 (3)
Exchange (loss) gain - (8) - 12
Share of equity
accounted
investments profit - - - (15)
Profit (loss) before
taxation 738 1,192 (10) 439
Taxation (230) (214) 1 (68)
Profit (loss) for
the period 509 977 (9) 371
Equity shareholders 509 964 (9) 359
Non-controlling
interests - 14 - 12
Operating profit
(loss) 742 1,201 (12) 445
Unrealised non-hedge
derivatives and
other
commodity contracts - - - 1
Intercompany
transactions - 34 1 2
Special items 14 (539) (3) (1)
Share of associates`
EBIT - - - (15)
EBIT 756 695 (14) 432
Amortisation of
assets 263 152 28 122
Share of associates`
amortisation - - - -
EBITDA 1,019 848 14 553
Profit (loss)
attributable to
equity shareholders 509 964 (9) 359
Special items 14 (539) (3) (1)
Share of associates`
special items - - - -
Taxation on items
above (7) - 1 -
Headline earnings
(loss) 516 424 (11) 358
Unrealised non-hedge
derivatives and
other
commodity contracts - - - 1
Deferred tax on
unrealised non-hedge
derivatives and
other commodity
contracts - - - -
Fair value
adjustment on option
component
of convertible bonds - - - -
Fair value loss on
mandatory
convertible - - - -
Adjusted headline
earnings (loss) 516 424 (11) 359
Ore reserve
development capital 204 37 9 48
Stay-in-business
capital 86 162 6 81
Project capital 61 69 46 179
Total capital
expenditure 351 268 62 308
FINANCIAL RESULTS -
NINE MONTHS Corporate
Sub-total Less equity Total group
ENDED SEPTEMBER 2011 accounted
$`m and other investments
Gold income - 5,072 (282) 4,791
Cash costs 20 (2,564) 158 (2,406)
By-products revenue 1 176 (1) 175
Total cash costs 21 (2,388) 157 (2,231)
Retrenchment costs - (11) - (10)
Rehabilitation and
other non-cash costs - (73) 1 (72)
Amortisation of assets (9) (574) 6 (566)
Total production costs 12 (3,045) 164 (2,881)
Inventory change - 33 (2) 31
Cost of sales 12 (3,012) 162 (2,849)
Adjusted gross profit
(loss) 12 2,061 (119) 1,942
Unrealised non-hedge
derivatives and other
commodity contracts - (1) - (1)
Gross profit (loss) 12 2,060 (119) 1,941
Corporate and other
costs (181) (232) (1) (233)
Exploration (29) (200) 4 (196)
Intercompany
transactions 37 - - -
Special items (568) 18 - 18
Operating profit (loss) (729) 1,647 (117) 1,530
Net finance (costs)
income, unwinding of
obligations and fair
value adjustments 83 78 (3) 74
Exchange (loss) gain 5 8 3 12
Share of equity
accounted investments
profit (7) (21) 78 57
Profit (loss) before
taxation (648) 1,711 (38) 1,673
Taxation (4) (515) 38 (477)
Profit (loss) for the
period (652) 1,196 - 1,196
Equity shareholders (655) 1,167 - 1,167
Non-controlling
interests 3 29 - 29
Operating profit (loss) (729) 1,647 (117) 1,530
Unrealised non-hedge
derivatives and other
commodity contracts - 1 - 1
Intercompany transactions (37) - - -
Special items 561 31 - 31
Share of associates`
EBIT (4) (19) 117 98
EBIT (209) 1,660 - 1,660
Amortisation of assets 9 574 (6) 567
Share of associates`
amortisation - - 6 6
EBITDA (201) 2,234 - 2,234
Profit (loss)
attributable to equity
shareholders (655) 1,167 - 1,167
Special items 561 31 - 31
Share of associates`
special items 2 2 - 2
Taxation on items above - (7) - (7)
Headline earnings (loss) (92) 1,194 - 1,194
Unrealised non-hedge
derivatives and other
commodity contracts - 1 - 1
Deferred tax on
unrealised non-hedge
derivatives and other
commodity contracts - - - -
Fair value adjustment
on option component
of convertible bonds (98) (98) - (98)
Fair value loss on
mandatory convertible (95) (95) - (95)
Adjusted headline
earnings (loss) (286) 1,002 - 1,002
Ore reserve
development capital - 299 - 299
Stay-in-business capital 13 348 (4) 344
Project capital - 355 (54) 301
Total capital expenditure 14 1,002 (58) 944
Rounding of figures may result in computational discrepancies.
IMPERIAL
OPERATING
RESULTS Continental
South Africa Africa Australasia
NINE MONTHS ENDED
SEPTEMBER 2010
UNDERGROUND
OPERATION
Area mined - 000 ft2 10,035 -
Mined - 000 tons 6,151 1,550 469
Milled /
Treated - 000 tons 5,719 1,525 397
Yield - oz/t 0.207 0.153 0.119
Gold produced - oz (000) 1,182 234 47
SURFACE AND
DUMP
RECLAMATION
Milled /
Treated - 000 tons 8,311 864 -
Yield - oz/t 0.015 0.019 -
Gold produced - oz (000) 127 17 -
OPEN-PIT
OPERATION
Volume mined - 000 bcy - 47,060 5,009
Mined - 000 tons - 93,356 11,766
Treated - 000 tons - 17,579 2,596
Stripping
ratio - ratio - 4.03 4.88
Yield - oz/t - 0.046 0.095
Gold produced - oz (000) - 816 247
HEAP LEACH
OPERATION
Mined - 000 tons - 3,942 -
Placed - 000 tons - 953 -
Stripping
ratio - ratio - 6.95 -
Yield - oz/t - 0.039 -
Gold placed - oz (000) - 37 -
Gold produced - oz (000) - 51 -
PRODUCTIVITY
PER EMPLOYEE
Actual - oz 5.48 11.28 66.59
TOTAL
Subsidiaries`
gold produced - oz (000) 1,309 906 294
Joint
ventures`
gold produced - oz (000) - 212 -
Attributable
gold produced - oz (000) 1,309 1,118 294
Minority gold
produced - oz (000) - 36 -
Subsidiaries`
gold sold - oz (000) 1,315 894 291
Joint
ventures`
gold sold - oz (000) - 208 -
Attributable
gold sold - oz (000) 1,315 1,102 291
Minority gold
sold - oz (000) - 35 -
Spot price - $/oz 1,178 1,178 1,178
Price received- $/oz sold 531 691 608
Price
received
excluding
hedge
buy-back costs- $/oz sold 1,086 1,095 1,069
Total cash
costs - $/oz produced 592 686 1,012
Total
production
costs - $/oz produced 787 823 1,091
IMPERIAL OPERATING RESULTS
Americas Total group
NINE MONTHS ENDED SEPTEMBER
2010
UNDERGROUND OPERATION
Area mined - 000 ft2 - - 10,035
Mined - 000 tons 1,507 9,677
Milled / Treated - 000 tons 1,566 9,207
Yield - oz/t 0.187 0.191
Gold produced - oz (000) 293 1,756
SURFACE AND DUMP RECLAMATION
Milled / Treated - 000 tons - 9,175
Yield - oz/t - 0.016
Gold produced - oz (000) - 144
OPEN-PIT OPERATION
Volume mined - 000 bcy - 52,069
Mined - 000 tons 23,804 128,927
Treated - 000 tons 860 21,035
Stripping ratio - ratio 25.41 5.01
Yield - oz/t 0.172 0.058
Gold produced - oz (000) 148 1,211
HEAP LEACH OPERATION
Mined - 000 tons 50,843 54,784
Placed - 000 tons 17,309 18,262
Stripping ratio - ratio 1.98 2.12
Yield - oz/t 0.014 0.015
Gold placed - oz (000) 241 278
Gold produced - oz (000) 205 257
PRODUCTIVITY PER EMPLOYEE
Actual - oz 23.35 9.10
TOTAL
Subsidiaries` gold produced - oz (000) 646 3,155
Joint ventures` gold produced - oz (000) - 212
Attributable gold produced - oz (000) 646 3,367
Minority gold produced - oz (000) 70 106
Subsidiaries` gold sold - oz (000) 646 3,147
Joint ventures` gold sold - oz (000) - 208
Attributable gold sold - oz (000) 646 3,355
Minority gold sold - oz (000) 71 106
Spot price - $/oz 1,178 1,178
Price received - $/oz sold 570 598
Price received excluding hedge
buy-back costs - $/oz sold 1,079 1,086
Total cash costs - $/oz produced 422 627
Total production costs - $/oz produced 560 783
Rounding of figures may result in computational discrepancies.
FINANCIAL RESULTS -
NINE MONTHS Continental
South Africa Africa Australasia Americas
ENDED SEPTEMBER 2010 $`m
Gold income received (1) 1,428 1,248 311 770
Cash costs (800) (792) (298) (385)
By-products revenue 25 3 1 52
Total cash costs (775) (789) (297) (333)
Retrenchment costs (12) - - (2)
Rehabilitation and
other non-cash costs (4) (26) - (1)
Amortisation of assets (240) (130) (23) (103)
Total production costs (1,031) (945) (320) (439)
Inventory change (4) 11 2 32
Cost of sales (1,034) (934) (319) (408)
Adjusted gross
profit (loss) excluding
hedge buy-back costs 394 315 (8) 362
Hedge buy-back costs (729) (446) (134) (328)
Adjusted gross
profit (loss) (335) (131) (142) 34
Unrealised non-hedge
derivatives and other
commodity contracts 815 95 10 369
Gross profit (loss) 479 (36) (132) 403
Corporate and other costs (7) (5) (1) (20)
Exploration (1) (34) (32) (61)
Intercompany
transactions - (25) (1) (1)
Special items (24) (24) 8 -
Operating profit (loss) 448 (125) (158) 321
Net finance (costs)
income, unwinding of
obligations and fair
value adjustments (1) (6) - 2
Exchange gain (loss) - (11) - (8)
Share of equity accounted
investments
profit (loss) - - - -
Profit (loss) before taxation 446 (141) (158) 314
Taxation 6 (112) 4 (83)
Profit (loss) for the period 452 (253) (155) 231
Equity shareholders 452 (263) (155) 211
Non-controlling interests - 10 - 20
Operating profit (loss) 448 (125) (158) 321
Unrealised non-hedge
derivatives and other
commodity contracts (815) (95) (10) (369)
Hedge buy-back costs 729 446 134 328
Intercompany transactions - 25 1 1
Special items 32 11 (6) 1
Share of associates`
EBIT - - - -
EBIT 395 262 (39) 282
Amortisation of
assets 240 130 23 103
Share of associates`
amortisation - - - -
EBITDA 634 392 (16) 385
Profit (loss)
attributable to
equity shareholders 452 (263) (155) 211
Special items 32 11 (6) 1
Share of associates`
special items - - - -
Taxation on items above (8) (3) - (1)
Headline earnings
(loss) 477 (255) (160) 211
Unrealised non-hedge
derivatives and
other commodity
contracts (815) (95) (10) (369)
Deferred tax on
unrealised non-hedge
derivatives and
other commodity
contracts 267 - 3 -
Fair value
adjustment on option
component
of convertible bond - - - -
Fair value loss on mandatory
convertible bond - - - -
Hedge buy-back and
related costs
net of taxation 523 443 134 328
Adjusted headline
earnings (loss) excluding
hedge buy-back costs 452 93 (33) 169
Ore reserve
development capital 182 27 13 38
Stay-in-business
capital 66 62 9 59
Project capital 33 49 8 103
Total capital
expenditure 280 137 29 200
FINANCIAL RESULTS -
NINE MONTHS
Corporate Sub-total Less equity Total group
accounted
ENDED SEPTEMBER 2010 and other investments
$`m
Gold income received
(1) - 3,758 (244) 3,514
Cash costs 26 (2,249) 141 (2,108)
By-products revenue 2 83 - 83
Total cash costs 28 (2,166) 141 (2,026)
Retrenchment costs - (14) - (14)
Rehabilitation and
other non-cash costs - (31) - (31)
Amortisation of assets (7) (503) 7 (495)
Total production costs 21 (2,714) 147 (2,566)
Inventory change - 40 (2) 38
Cost of sales 21 (2,673) 145 (2,529)
Adjusted gross profit
(loss) excluding
hedge buy-back costs 21 1,084 (99) 986
Hedge buy-back costs - (1,637) - (1,637)
Adjusted gross profit
(loss) 21 (553) (99) (652)
Unrealised non-hedge
derivatives and other
commodity contracts - 1,289 - 1,289
Gross profit (loss) 21 736 (99) 637
Corporate and other
costs (127) (160) - (160)
Exploration (23) (151) 2 (149)
Intercompany
transactions 28 - - -
Special items (53) (94) (1) (95)
Operating profit (loss) (154) 331 (98) 233
Net finance (costs)
income, unwinding of
obligations and fair
value adjustments (66) (70) - (70)
Exchange gain (loss) 8 (11) - (11)
Share of equity
accounted investments
profit (loss) 3 3 51 54
Profit (loss) before
taxation (209) 252 (46) 206
Taxation (9) (195) 46 (149)
Profit (loss) for the
period (218) 57 - 57
Equity shareholders (225) 20 - 20
Non-controlling
interests 7 37 - 37
Operating profit (loss) (154) 331 (98) 233
Unrealised non-hedge
derivatives and other
commodity contracts - (1,289) - (1,289)
Hedge buy-back costs 59 1,696 - 1,696
Intercompany
transactions (28) - - -
Special items 2 40 1 41
Share of associates`
EBIT (3) (3) 97 94
EBIT (123) 776 - 776
Amortisation of assets 7 503 (7) 495
Share of associates`
amortisation - - 7 7
EBITDA (117) 1,278 - 1,278
Profit (loss)
attributable to equity
shareholders (225) 20 - 20
Special items 2 40 1 41
Share of associates`
special items (6) (6) (1) (7)
Taxation on items above - (12) - (12)
Headline earnings
(loss) (229) 43 - 43
Unrealised non-hedge
derivatives and
other commodity
contracts - (1,289) - (1,289)
Deferred tax on
unrealised non-hedge
derivatives and other
commodity contracts - 270 - 270
Fair value adjustment
on option component
of convertible bond (40) (40) - (40)
Fair value loss on
mandatory convertible
bond 22 22 - 22
Hedge buy-back and
related costs
net of taxation 59 1,487 - 1,487
Adjusted headline
earnings (loss)
excluding
hedge buy-back costs (187) 494 - 494
Ore reserve
development capital - 259 - 259
Stay-in-business
capital 3 199 (3) 196
Project capital - 193 (25) 168
Total capital
expenditure 3 650 (27) 623
(1) Gold income received is gold income per income statement, (loss) gain on
realised non-hedge derivatives (note 4).
Rounding of figures may result in computational discrepancies.
METRIC OPERATING RESULTS Continental
South Africa Africa Australasia
QUARTER ENDED
SEPTEMBER 2011
UNDERGROUND
OPERATION
Area mined - 000 m2 244 - -
Mined - 000 tonnes 1,534 478 283
Milled /
Treated - 000 tonnes 1,429 496 267
Yield - g/t 7.87 4.71 2.13
Gold produced - kg 11,246 2,336 569
SURFACE AND
DUMP
RECLAMATION
Milled /
Treated - 000 tonnes 2,472 - -
Yield - g/t 0.40 - -
Gold produced - kg 997 91 -
OPEN-PIT
OPERATION
Volume mined - 000 bcm - 12,983 172
Mined - 000 tonnes - 31,335 218
Treated - 000 tonnes - 6,063 658
Stripping
ratio - ratio - 5.43 35.22
Yield - g/t - 1.67 1.50
Gold produced - kg - 10,104 989
HEAP LEACH
OPERATION
Mined - 000 tonnes - 1,431 -
Placed - 000 tonnes - 261 -
Stripping
ratio - ratio - 9.09 -
Yield - g/t - 1.05 -
Gold placed - kg - 275 -
Gold produced - kg - 238 -
PRODUCTIVITY
PER EMPLOYEE
Actual -g 176 366 997
TOTAL
Subsidiaries`
gold produced - kg 12,243 10,822 1,558
Joint
ventures`
gold produced - kg - 1,947 -
Attributable
gold produced - kg 12,243 12,769 1,558
Minority gold
produced - kg - 310 -
Subsidiaries`
gold sold - kg 12,232 10,059 1,711
Joint
ventures`
gold sold - k g - 1,943 -
Attributable
gold sold - kg 12,232 12,002 1,711
Minority gold
sold - kg - 332 -
Spot price - R/kg 391,507 391,507 391,507
Price received- R/kg sold 395,628 398,860 384,427
Total cash
costs - R/kg produced 173,263 169,453 359,740
Total
production
costs - R/kg produced 224,553 202,915 399,434
METRIC OPERATING RESULTS
Americas Total group
QUARTER ENDED SEPTEMBER 2011
UNDERGROUND OPERATION
Area mined - 000 m2 - 244
Mined - 000 tonnes 506 2,802
Milled / Treated - 000 tonnes 559 2,751
Yield - g/t 6.64 6.49
Gold produced - kg 3,713 17,863
SURFACE AND DUMP RECLAMATION
Milled / Treated - 000 tonnes - 2,472
Yield - g/t - 0.44
Gold produced - kg - 1,088
OPEN-PIT OPERATION
Volume mined - 000 bcm - 13,155
Mined - 000 tonnes 6,766 38,319
Treated - 000 tonnes 230 6,952
Stripping ratio - ratio 22.71 6.42
Yield - g/t 6.05 1.80
Gold produced - kg 1,395 12,488
HEAP LEACH OPERATION
Mined - 000 tonnes 17,356 18,788
Placed - 000 tonnes 5,371 5,632
Stripping ratio - ratio 2.40 2.58
Yield - g/t 0.43 0.46
Gold placed - kg 2,297 2,573
Gold produced - kg 2,293 2,531
PRODUCTIVITY PER EMPLOYEE
Actual -g 682 291
TOTAL
Subsidiaries` gold produced - kg 7,401 32,023
Joint ventures` gold produced - kg - 1,947
Attributable gold produced - kg 7,401 33,970
Minority gold produced - kg 603 913
Subsidiaries` gold sold - kg 7,646 31,647
Joint ventures` gold sold - k g - 1,943
Attributable gold sold - kg 7,646 33,590
Minority gold sold - kg 653 985
Spot price - R/kg 391,507 391,507
Price received - R/kg sold 389,420 394,799
Total cash costs - R/kg produced 120,879 168,935
Total production costs - R/kg produced 163,708 211,460
Rounding of figures may result in computational discrepancies.
FINANCIAL RESULTS -
QUARTER ENDED Continental
South Africa Africa Australasia Americas
SEPTEMBER 2011 ZAR`m
Gold income 4,839 4,919 658 3,195
Cash costs (2,287) (2,246) (563) (1,309)
By-products revenue 165 15 2 225
Total cash costs (2,121) (2,231) (561) (1,084)
Retrenchment costs (13) (8) - (5)
Rehabilitation and
other non-cash costs (14) (33) - (34)
Amortisation of
assets (601) (391) (62) (317)
Total production
costs (2,749) (2,663) (622) (1,440)
Inventory change 2 91 (35) 44
Cost of sales (2,747) (2,572) (658) (1,396)
Adjusted gross
profit (loss) 2,092 2,347 - 1,799
Unrealised non-hedge
derivatives and
other
commodity contracts - - - (4)
Gross profit (loss) 2,092 2,346 - 1,795
Corporate and other
costs (25) 1 (3) (68)
Exploration (3) (127) (111) (231)
Intercompany
transactions - (80) (9) (4)
Special items (32) (95) 85 9
Operating profit
(loss) 2,033 2,046 (37) 1,501
Net finance (costs)
income, unwinding of
obligations and fair
value adjustments (9) 17 13 (11)
Exchange gain (loss) - (6) (2) 93
Share of equity
accounted
investments
profit (loss) - - - (58)
Profit (loss) before
taxation 2,024 2,057 (26) 1,525
Taxation (694) (741) 8 (176)
Profit (loss) for
the period 1,331 1,317 (19) 1,349
Equity shareholders 1,331 1,285 (19) 1,302
Non-controlling
interests - 32 - 47
Operating profit
(loss) 2 033 2 046 (37) 1 501
Unrealised non-hedge
derivatives and
other
commodity contracts - - - 4
Intercompany
transactions - 80 9 4
Special items 39 66 (1) (1)
Share of associates`
EBIT - - - (58)
EBIT 2,072 2,191 (30) 1,451
Amortisation of
assets 601 391 62 317
Share of associates`
amortisation - - - -
EBITDA 2,673 2,582 32 1,768
Profit (loss)
attributable to
equity shareholders 1,331 1,285 (19) 1,302
Special items 39 66 (1) (1)
Share of associates`
special items - - - -
Taxation on items
above (14) (1) - 1
Headline earnings
(loss) 1,355 1,350 (19) 1,302
Unrealised non-hedge
derivatives and
other commodity
contracts - - - 4
Deferred tax on
unrealised non-hedge
derivatives and
other commodity
contracts - - - -
Fair value
adjustment on option
component
of convertible bonds - - - -
Fair value loss on
mandatory
convertible - - - -
Adjusted headline
earnings (loss) 1,355 1,350 (19) 1,306
Ore reserve
development capital 505 90 35 123
Stay-in-business
capital 311 477 17 283
Project capital 187 155 176 489
Total capital
expenditure 1,004 722 227 895
FINANCIAL RESULTS -
QUARTER ENDED Corporate Sub-total Less equity
accounted
SEPTEMBER 2011 ZAR`m and other investments Total group
Gold income - 13,610 (760) 12,850
Cash costs (2) (6,407) 402 (6,005)
By-products revenue 1 409 (3) 406
Total cash costs (1) (5,998) 400 (5,598)
Retrenchment costs - (26) - (26)
Rehabilitation and
other non-cash costs - (81) 2 (80)
Amortisation of assets (21) (1,392) 14 (1,378)
Total production costs (23) (7,498) 415 (7,083)
Inventory change - 103 (1) 102
Cost of sales (23) (7,395) 415 (6,980)
Adjusted gross profit
(loss) (23) 6,215 (345) 5,870
Unrealised non-hedge
derivatives and other
commodity contracts - (5) - (5)
Gross profit (loss) (23) 6,210 (345) 5,865
Corporate and other
costs (476) (571) (1) (572)
Exploration (81) (552) 12 (541)
Intercompany
transactions 92 - - -
Special items (64) (97) - (97)
Operating profit (loss) (552) 4,990 (335) 4,655
Net finance (costs)
income, unwinding of
obligations and fair
value adjustments (104) (93) (25) (116)
Exchange gain (loss) 39 124 - 123
Share of equity
accounted investments
profit (loss) (13) (71) 247 175
Profit (loss) before
taxation (630) 4,950 (113) 4,837
Taxation 25 (1,578) 113 (1,465)
Profit (loss) for the
period (605) 3,372 - 3,372
Equity shareholders (595) 3,304 - 3,304
Non-controlling
interests (11) 68 - 68
Operating profit (loss) (552) 4 990 (335) 4 655
Unrealised non-hedge
derivatives and other
commodity contracts - 5 - 5
Intercompany
transactions (92) - - -
Special items 64 167 - 167
Share of associates`
EBIT (12) (70) 335 265
EBIT (592) 5,092 - 5,092
Amortisation of assets 21 1,392 (14) 1,378
Share of associates`
amortisation - - 14 14
EBITDA (570) 6,485 - 6,485
Profit (loss)
attributable to equity
shareholders (595) 3,304 - 3,304
Special items 64 167 - 167
Share of associates`
special items 2 2 - 2
Taxation on items above - (14) - (14)
Headline earnings
(loss) (529) 3,458 - 3,458
Unrealised non-hedge
derivatives and
other commodity
contracts - 5 - 5
Deferred tax on
unrealised non-hedge
derivatives and other
commodity contracts - - - -
Fair value adjustment
on option component
of convertible bonds (88) (88) - (88)
Fair value loss on
mandatory convertible (66) (66) - (66)
Adjusted headline
earnings (loss) (682) 3,310 - 3,310
Ore reserve
development capital - 752 - 752
Stay-in-business capital 73 1,163 (13) 1,149
Project capital - 1,007 (129) 878
Total capital
expenditure 74 2,922 (143) 2,780
Rounding of figures may result in computational discrepancies.
METRIC OPERATING RESULTS Continental
South Africa Africa Australasia
QUARTER ENDED
JUNE 2011
UNDERGROUND OPERATION
Area mined - 000 m2 275 - -
Mined - 000 tonnes 1,664 441 237
Milled /
Treated - 000 tonnes 1,497 490 220
Yield - g/t 7.97 5.19 3.15
Gold produced - kg 11,937 2,546 693
SURFACE AND
DUMP
RECLAMATION
Milled /
Treated - 000 tonnes 2,803 - -
Yield - g/t 0.53 - -
Gold produced - kg 1,478 36 -
OPEN-PIT
OPERATION
Volume mined - 000 bcm - 14,101 131
Mined - 000 tonnes - 33,493 358
Treated - 000 tonnes - 5,327 667
Stripping
ratio - ratio - 4.63 7.57
Yield - g/t - 1.68 1.79
Gold produced - kg - 8,963 1,195
HEAP LEACH
OPERATION
Mined - 000 tonnes - 1,746 -
Placed - 000 tonnes - 288 -
Stripping
ratio - ratio - 6.31 -
Yield - g/t - 1.10 -
Gold placed - kg - 317 -
Gold produced - kg - 195 -
PRODUCTIVITY
PER EMPLOYEE
Actual -g 193 343 1,262
TOTAL
Subsidiaries`
gold produced - kg 13,415 9,758 1,888
Joint
ventures`
gold produced - kg - 1,982 -
Attributable
gold produced - kg 13,415 11,740 1,888
Minority gold
produced - kg - 362 -
Subsidiaries`
gold sold - kg 13,420 9,649 1,925
Joint
ventures`
gold sold - kg - 1,928 -
Attributable
gold sold - kg 13,420 11,577 1,925
Minority gold
sold - kg - 363 -
Spot price - R/kg 326,078 326,078 326,078
Price received- R/kg sold 330,266 328,101 326,549
Total cash
costs - R/kg produced 149,788 153,485 347,372
Total
production
costs - R/kg produced 197,117 187,545 379,933
METRIC OPERATING RESULTS
Americas Total group
QUARTER ENDED JUNE 2011
UNDERGROUND OPERATION
Area mined - 000 m2 - 275
Mined - 000 tonnes 518 2,860
Milled / Treated - 000 tonnes 499 2,707
Yield - g/t 6.20 6.75
Gold produced - kg 3,094 18,270
SURFACE AND DUMP RECLAMATION
Milled / Treated - 000 tonnes - 2,803
Yield - g/t - 0.54
Gold produced - kg - 1,514
OPEN-PIT OPERATION
Volume mined - 000 bcm - 14,232
Mined - 000 tonnes 6,905 40,756
Treated - 000 tonnes 236 6,230
Stripping ratio - ratio 23.32 5.49
Yield - g/t 5.74 1.85
Gold produced - kg 1,352 11,510
HEAP LEACH OPERATION
Mined - 000 tonnes 16,282 18,028
Placed - 000 tonnes 5,425 5,713
Stripping ratio - ratio 2.07 2.25
Yield - g/t 0.39 0.42
Gold placed - kg 2,100 2,417
Gold produced - kg 2,287 2,482
PRODUCTIVITY PER EMPLOYEE
Actual -g 645 292
TOTAL
Subsidiaries` gold produced - kg 6,733 31,794
Joint ventures` gold produced - kg - 1,982
Attributable gold produced - kg 6,733 33,776
Minority gold produced - kg 563 925
Subsidiaries` gold sold - kg 6,612 31,606
Joint ventures` gold sold - kg - 1,928
Attributable gold sold - kg 6,612 33,534
Minority gold sold - kg 577 941
Spot price - R/kg 326,078 326,078
Price received - R/kg sold 328,472 328,951
Total cash costs - R/kg produced 106,092 153,441
Total production costs - R/kg produced 173,081 199,541
Rounding of figures may result in computational discrepancies.
FINANCIAL RESULTS Continental
South Africa Africa Australasia Americas
QUARTER ENDED JUNE
2011 ZAR`m
Gold income 4,432 3,918 629 2,335
Cash costs (2,236) (1,877) (658) (1,086)
By-products revenue 226 11 2 215
Total cash costs (2,009) (1,865) (656) (871)
Retrenchment costs (15) - - (5)
Rehabilitation and
other non-cash costs (14) (56) (6) (276)
Amortisation of
assets (606) (349) (56) (258)
Total production
costs (2,644) (2,270) (717) (1,409)
Inventory change (1) 7 18 100
Cost of sales (2,645) (2,263) (700) (1,309)
Adjusted gross
profit (loss) 1,787 1,655 (71) 1,025
Unrealised non-hedge
derivatives and
other
commodity contracts - 3 - (17)
Gross profit (loss) 1,787 1,658 (71) 1,008
Corporate and other
costs (21) (26) (1) (67)
Exploration (2) (87) (80) (202)
Intercompany
transactions - (75) - (5)
Special items (47) 3,973 112 6
Operating profit
(loss) 1,718 5,442 (40) 741
Net finance (costs)
income, unwinding of
obligations and fair
value adjustments (7) (11) (2) (7)
Exchange gain (loss) - (24) - (12)
Share of equity
accounted
investments
profit (loss) - - - (18)
Profit (loss) before
taxation 1,711 5,408 (43) 703
Taxation (533) (479) 9 (80)
Profit (loss) for
the period 1,178 4,929 (34) 623
Equity shareholders 1,178 4,899 (34) 622
Non-controlling
interests - 29 - 1
Operating profit
(loss) 1 718 5 442 (40) 741
Unrealised non-hedge
derivatives and
other
commodity contracts - (3) - 17
Intercompany
transactions - 75 - 5
Special items 51 (3,766) (20) (7)
Share of associates`
EBIT - - - (18)
EBIT 1,769 1,748 (60) 737
Amortisation of
assets 606 349 56 258
Share of associates`
amortisation - - - -
EBITDA 2,375 2,098 (5) 995
Profit (loss)
attributable to
equity shareholders 1,178 4,899 (34) 622
Special items 51 (3,766) (20) (7)
Share of associates`
special items - - - -
Taxation on items
above (31) (1) 6 -
Headline earnings
(loss) 1,198 1,133 (48) 615
Unrealised non-hedge
derivatives and
other commodity
contracts - (3) - 17
Deferred tax on
unrealised non-hedge
derivatives and
other commodity
contracts - - - -
Fair value
adjustment on option
component
of convertible bonds - - - -
Fair value loss on
mandatory
convertible - - - -
Adjusted headline
earnings (loss) 1,198 1,130 (48) 632
Ore reserve
development capital 462 81 8 113
Stay-in-business
capital 198 428 11 180
Project capital 126 201 111 415
Total capital
expenditure 786 710 130 709
Less equity
FINANCIAL RESULTS Corporate Sub-total accounted Total group
QUARTER ENDED JUNE
2011 ZAR`m and other investments
Gold income - 11,313 (633) 10,680
Cash costs 169 (5,687) 347 (5,340)
By-products revenue 4 459 (2) 458
Total cash costs 173 (5,228) 345 (4,883)
Retrenchment costs - (20) - (20)
Rehabilitation and
other non-cash costs - (351) 2 (349)
Amortisation of assets (24) (1,293) 15 (1,278)
Total production costs 149 (6,892) 362 (6,529)
Inventory change - 124 (7) 117
Cost of sales 149 (6,768) 355 (6,412)
Adjusted gross profit
(loss) 149 4,545 (278) 4,268
Unrealised non-hedge
derivatives and other
commodity contracts - (14) - (14)
Gross profit (loss) 149 4,531 (278) 4,254
Corporate and other
costs (386) (501) (1) (502)
Exploration (67) (437) 8 (429)
Intercompany
transactions 80 - - -
Special items (3,847) 197 - 197
Operating profit (loss) (4,070) 3,791 (271) 3,520
Net finance (costs)
income, unwinding of
obligations and fair
value adjustments 697 670 2 672
Exchange gain (loss) (5) (41) 7 (34)
Share of equity
accounted investments
profit (loss) (18) (37) 175 139
Profit (loss) before
taxation (3,396) 4,383 (86) 4,297
Taxation (16) (1,099) 86 (1,013)
Profit (loss) for the
period (3,412) 3,284 - 3,284
Equity shareholders (3,470) 3,195 - 3,195
Non-controlling
interests 58 89 - 89
Operating profit (loss) (4 070) 3 791 (271) 3 520
Unrealised non-hedge
derivatives and other
commodity contracts - 14 - 14
Intercompany
transactions (80) - - -
Special items 3,802 60 - 60
Share of associates`
EBIT (3) (21) 271 249
EBIT (352) 3,843 - 3,843
Amortisation of assets 24 1,293 (15) 1,278
Share of associates`
amortisation - - 15 15
EBITDA (328) 5,136 - 5,136
Profit (loss)
attributable to equity
shareholders (3,470) 3,195 - 3,195
Special items 3,802 60 - 60
Share of associates`
special items 15 15 - 15
Taxation on items above - (26) - (26)
Headline earnings
(loss) 347 3,244 - 3,244
Unrealised non-hedge
derivatives and
other commodity
contracts - 14 - 14
Deferred tax on
unrealised non-hedge
derivatives and other
commodity contracts - - - -
Fair value adjustment
on option component
of convertible bonds (499) (499) - (499)
Fair value loss on
mandatory convertible (442) (442) - (442)
Adjusted headline
earnings (loss) (594) 2,317 - 2,317
Ore reserve
development capital - 663 - 663
Stay-in-business
capital 7 825 (8) 817
Project capital - 854 (148) 706
Total capital
expenditure 7 2,342 (156) 2,186
Rounding of figures may result in computational discrepancies.
METRIC OPERATING
RESULTS Continental
South Africa Africa Australasia
QUARTER ENDED
SEPTEMBER 2010
UNDERGROUND OPERATION
Area mined - 000 m2 299 - -
Mined - 000 tonnes 1,826 410 106
Milled /
Treated - 000 tonnes 1,702 435 131
Yield - g/t 7.77 5.05 3.17
Gold produced - kg 13,223 2,200 414
SURFACE AND
DUMP
RECLAMATION
Milled /
Treated - 000 tonnes 2,533 285 -
Yield - g/t 0.65 0.50 -
Gold produced - kg 1,636 143 -
OPEN-PIT
OPERATION
Volume mined - 000 bcm - 11,080 1,336
Mined - 000 tonnes - 26,636 3,677
Treated - 000 tonnes - 5,328 782
Stripping
ratio - ratio - 4.54 3.86
Yield - g/t - 1.68 3.17
Gold produced - kg - 8,952 2,480
HEAP LEACH
OPERATION
Mined - 000 tonnes - 1,507 -
Placed - 000 tonnes - 232 -
Stripping
ratio - ratio - 8.43 -
Yield - g/t - 1.04 -
Gold placed - kg - 242 -
Gold produced - kg - 305 -
PRODUCTIVITY
PER EMPLOYEE
Actual -g 192 348 1,938
TOTAL
Subsidiaries`
gold produced - kg 14,859 9,645 2,894
Joint
ventures`
gold produced - kg - 1,955 -
Attributable
gold produced - kg 14,859 11,600 2,894
Minority gold
produced - kg - 341 -
Subsidiaries`
gold sold - kg 15,948 9,532 2,697
Joint
ventures`
gold sold - kg - 1,889 -
Attributable
gold sold - kg 15,948 11,421 2,697
Minority gold
sold - kg - 334 -
Spot price - R/kg 287,837 287,837 287,837
Price received- R/kg sold (58,520) (7,300) (86,186)
Price
received
excluding
hedge
buy-back costs- R/kg sold 266,454 270,165 267,056
Total cash
costs - R/kg produced 139,350 170,196 250,073
Total
production
costs - R/kg produced 181,238 206,279 268,283
METRIC OPERATING RESULTS
Americas Total group
QUARTER ENDED SEPTEMBER 2010
UNDERGROUND OPERATION
Area mined - 000 m2 - 299
Mined - 000 tonnes 517 2,859
Milled / Treated - 000 tonnes 512 2,780
Yield - g/t 6.62 6.92
Gold produced - kg 3,391 19,229
SURFACE AND DUMP RECLAMATION
Milled / Treated - 000 tonnes - 2,818
Yield - g/t - 0.63
Gold produced - kg - 1,779
OPEN-PIT OPERATION
Volume mined - 000 bcm - 12,416
Mined - 000 tonnes 7,467 37,780
Treated - 000 tonnes 246 6,356
Stripping ratio - ratio 26.04 5.47
Yield - g/t 5.93 2.03
Gold produced - kg 1,456 12,887
HEAP LEACH OPERATION
Mined - 000 tonnes 14,975 16,482
Placed - 000 tonnes 5,458 5,691
Stripping ratio - ratio 1.87 2.07
Yield - g/t 0.47 0.49
Gold placed - kg 2,554 2,797
Gold produced - kg 1,929 2,234
PRODUCTIVITY PER EMPLOYEE
Actual -g 720 297
TOTAL
Subsidiaries` gold produced - kg 6,776 34,174
Joint ventures` gold produced - kg - 1,955
Attributable gold produced - kg 6,776 36,129
Minority gold produced - kg 743 1,084
Subsidiaries` gold sold - kg 6,829 35,005
Joint ventures` gold sold - kg - 1,889
Attributable gold sold - kg 6,829 36,894
Minority gold sold - kg 778 1,112
Spot price - R/kg 287,837 287,837
Price received - R/kg sold (75,066) (47,750)
Price received excluding hedge
buy-back costs - R/kg sold 266,777 267,707
Total cash costs - R/kg produced 101,552 151,007
Total production costs - R/kg produced 134,440 187,695
Rounding of figures may result in computational discrepancies.
FINANCIAL RESULTS -
QUARTER ENDED Continental
South Africa Africa Australasia Americas
SEPTEMBER 2010 ZAR`m
Gold income received (1) 4,249 3,181 720 2,020
Cash costs (2,139) (2,037) (725) (1,011)
By-products revenue 68 6 1 141
Total cash costs (2,071) (2,031) (724) (870)
Retrenchment costs (19) (2) - (4)
Rehabilitation and
other non-cash costs (11) (90) - (5)
Amortisation of
assets (592) (332) (53) (266)
Total production
costs (2,693) (2,455) (776) (1,146)
Inventory change (182) 68 17 104
Cost of sales (2,875) (2,387) (759) (1,042)
Adjusted gross
profit (loss) 1,374 795 (38) 979
Hedge buy-back costs (5,183) (3,169) (953) (2,335)
Adjusted gross
(loss) profit (3,809) (2,374) (991) (1,356)
Unrealised non-hedge
derivatives and
other
commodity contracts 6,550 1,801 (1) 2,992
Gross (loss) profit 2,742 (573) (992) 1,636
Corporate and other
costs (18) (26) (2) (66)
Exploration (2) (76) (100) (170)
Intercompany
transactions - (91) (2) (6)
Special items (55) (6) 12 1
Operating profit
(loss) 2,667 (772) (1,084) 1,396
Net finance (costs)
income, unwinding of
obligations and fair
value adjustments (9) (18) (2) 5
Exchange gain (loss) - (63) - (45)
Share of equity
accounted
investments profit - - - (1)
Profit (loss) before
taxation 2,657 (852) (1,086) 1,355
Taxation 108 (235) 20 (125)
Profit (loss) for
the period 2,765 (1,087) (1,066) 1,230
Equity shareholders 2,765 (1,111) (1,066) 1,166
Non-controlling
interests - 24 - 64
Operating profit
(loss) 2,667 (772) (1,084) 1,396
Unrealised non-hedge
derivatives and
other commodity
contracts (6,550) (1,801) 1 (2,992)
Hedge buy-back costs 5,183 3,169 953 2,335
Intercompany
transactions - 91 2 6
Special items 144 3 - 3
Share of associates`
EBIT - - - (1)
EBIT 1,443 690 (128) 746
Amortisation of
assets 592 332 53 266
Share of associates`
amortisation - - - -
EBITDA 2,035 1,022 (76) 1,012
Profit (loss)
attributable to
equity shareholders 2,765 (1,111) (1,066) 1,166
Special items 144 3 - 3
Share of associates`
special items - - - -
Taxation on items
above (43) - - (8)
Headline earnings
(loss) 2,866 (1,107) (1,066) 1,161
Unrealised non-hedge
derivatives and
other commodity
contracts (6,550) (1,801) 1 (2,992)
Deferred tax on
unrealised non-hedge
derivatives and
other commodity
contracts 2,152 - - -
Fair value
adjustment on option
component
of convertible bonds - - - -
Fair value loss on
mandatory
convertible - - - -
Hedge buy-back and
related costs
net of taxation 3,717 3,148 953 2,335
Adjusted headline
earnings (loss) 2,185 240 (112) 504
Ore reserve
development capital 479 68 28 105
Stay-in-business
capital 160 244 27 182
Project capital 92 126 18 317
Total capital
expenditure 731 439 72 604
FINANCIAL RESULTS -
QUARTER ENDED Less equity
Corporate Sub-total accounted Total group
SEPTEMBER 2010 ZAR`m and other investments
Gold income received
(1) - 10,171 (544) 9,627
Cash costs 38 (5,874) 366 (5,509)
By-products revenue 8 225 (1) 224
Total cash costs 46 (5,649) 365 (5,284)
Retrenchment costs - (25) 2 (23)
Rehabilitation and
other non-cash costs - (107) 1 (106)
Amortisation of assets (18) (1,261) 17 (1,244)
Total production costs 28 (7,042) 384 (6,658)
Inv entory change - 7 (8) (1)
Cost of sales 28 (7,034) 375 (6,659)
Adjusted gross profit
(loss) 28 3,137 (168) 2,969
Hedge buy-back costs - (11,639) - (11,639)
Adjusted gross (loss)
profit 28 (8,502) (168) (8,670)
Unrealised non-hedge
derivatives and other
commodity contracts - 11,343 - 11,343
Gross (loss) profit 28 2,841 (168) 2,672
Corporate and other
costs (313) (426) - (426)
Exploration (95) (444) 4 (440)
Intercompany
transactions 98 - - -
Special items (370) (416) (8) (424)
Operating profit (loss) (652) 1,555 (173) 1,382
Net finance (costs)
income, unwinding of
obligations and fair
value adjustments (526) (550) (3) (553)
Exchange gain (loss) (27) (134) 22 (113)
Share of equity
accounted investments
profit 90 89 62 151
Profit (loss) before
taxation (1,115) 959 (92) 867
Taxation (178) (410) 92 (318)
Profit (loss) for the
period (1,293) 549 - 549
Equity shareholders (1,311) 443 - 443
Non-controlling
interests 18 106 - 106
Operating profit (loss) (652) 1,555 (173) 1,382
Unrealised non-hedge
derivatives and
other commodity
contracts - (11,343) - (11,343)
Hedge buy-back costs 422 12,060 - 12,060
Intercompany
transactions (98) - - -
Special items 8 158 8 166
Share of associates`
EBIT 16 15 165 180
EBIT (304) 2,446 - 2,446
Amortisation of assets 18 1,261 (17) 1,244
Share of associates`
amortisation - - 17 17
EBITDA (286) 3,706 - 3,706
Profit (loss)
attributable to equity
shareholders (1,311) 443 - 443
Special items 8 158 8 166
Share of associates`
special items (74) (74) (8) (82)
Taxation on items above - (51) - (51)
Headline earnings
(loss) (1,378) 476 - 476
Unrealised non-hedge
derivatives and
other commodity
contracts - (11,343) - (11,343)
Deferred tax on
unrealised non-hedge
derivatives and other
commodity contracts - 2,152 - 2,152
Fair value adjustment
on option component
of convertible bonds 166 166 - 166
Fair value loss on
mandatory convertible 160 160 - 160
Hedge buy-back and
related costs
net of taxation 422 10,573 - 10,573
Adjusted headline
earnings (loss) (630) 2,184 - 2,184
Ore reserve
development capital - 680 - 680
Stay-in-business
capital 9 623 (7) 616
Project capital - 552 (77) 475
Total capital
expenditure 9 1,855 (84) 1,771
(1) Gold income received is gold income per income statement and loss on
realised non-hedge derivatives (note 4).
Rounding of figures may result in computational discrepancies.
METRIC
OPERATING
RESULTS Continental
South Africa Africa Australasia
NINE MONTHS ENDED
SEPTEMBER 2011
UNDERGROUND OPERATION
YArea mined - 000 m2 770 - -
Mined - 000 tonnes 4,757 1,364 726
Milled /
Treated - 000 tonnes 4,317 1,480 727
Yield - g/t 7.91 4.76 3.48
Gold produced - kg 34,157 7,036 2,533
SURFACE AND
DUMP
RECLAMATION
Milled /
Treated - 000 tonnes 7,960 - -
Yield - g/t 0.50 - -
Gold produced - kg 3,967 162 -
OPEN-PIT
OPERATION
Volume mined - 000 bcm - 39,663 1,409
Mined - 000 tonnes - 94,495 3,651
Treated - 000 tonnes - 16,996 1,911
Stripping
ratio - ratio - 4.44 6.62
Yield - g/t - 1.64 1.65
Gold produced - kg - 27,933 3,157
HEAP LEACH
OPERATION
Mined - 000 tonnes - 4,666 -
Placed - 000 tonnes - 825 -
Stripping
ratio - ratio - 6.92 -
Yield - g/t - 1.05 -
Gold placed - kg - 864 -
Gold produced - kg - 664 -
PRODUCTIVITY
PER EMPLOYEE
Actual -g 183 349 1,176
TOTAL
Subsidiaries`
gold produced - kg 38 124 30 009 5 690
Joint
ventures`
gold produced - kg - 5,787 -
Attributable
gold produced - kg 38,124 35,796 5,690
Minority gold
produced - kg - 1,028 -
Subsidiaries`
gold sold - kg 38,116 29,709 5,804
Joint
ventures`
gold sold - kg - 5,709 -
Attributable
gold sold - kg 38,116 35,418 5,804
Minority gold
sold - kg - 1,076 -
Spot price - R/kg 343,979 343,979 343,979
Price received- R/kg sold 345,817 346,476 337,755
Total cash
costs - R/kg produced 155,190 168,844 315,797
Total
production
costs - R/kg produced 205,522 202,315 350,804
METRIC OPERATING RESULTS
Americas Total group
NINE MONTHS ENDED SEPTEMBER 2011
UNDERGROUND OPERATION
YArea mined - 000 m2 - 770
Mined - 000 tonnes 1,491 8,337
Milled / Treated - 000 tonnes 1,546 8,070
Yield - g/t 6.49 6.66
Gold produced - kg 10,035 53,761
SURFACE AND DUMP RECLAMATION
Milled / Treated - 000 tonnes - 7,960
Yield - g/t - 0.52
Gold produced - kg - 4,129
OPEN-PIT OPERATION
Volume mined - 000 bcm - 41,071
Mined - 000 tonnes 20,233 118,378
Treated - 000 tonnes 688 19,595
Stripping ratio - ratio 23.45 5.33
Yield - g/t 5.72 1.79
Gold produced - kg 3,936 35,026
HEAP LEACH OPERATION
Mined - 000 tonnes 49,314 53,980
Placed - 000 tonnes 16,011 16,836
Stripping ratio - ratio 2.18 2.35
Yield - g/t 0.40 0.43
Gold placed - kg 6,399 7,263
Gold produced - kg 6,468 7,133
PRODUCTIVITY PER EMPLOYEE
Actual -g 651 288
TOTAL
Subsidiaries` gold produced - kg 20 440 94 262
Joint ventures` gold produced - kg - 5,787
Attributable gold produced - kg 20,440 100,049
Minority gold produced - kg 1,800 2,828
Subsidiaries` gold sold - kg 20,557 94,186
Joint ventures` gold sold - kg - 5,709
Attributable gold sold - kg 20,557 99,895
Minority gold sold - kg 1,806 2,882
Spot price - R/kg 343,979 343,979
Price received - R/kg sold 345,990 345,618
Total cash costs - R/kg produced 112,013 160,402
Total production costs - R/kg produced 161,411 203,940
Rounding of figures may result in computational discrepancies.
FINANCIAL RESULTS -
NINE MONTHS Continental
South Africa Africa Australasia Americas
ENDED SEPTEMBER 2011
ZAR`m
Gold income 13,181 12,641 1,960 7,649
Cash costs (6,493) (6,268) (1,803) (3,445)
By-products revenue 577 39 6 596
Total cash costs (5,916) (6,228) (1,797) (2,849)
Retrenchment costs (49) (9) - (16)
Rehabilitation and
other non-cash costs (40) (142) (6) (313)
Amortisation of
assets (1,830) (1,063) (194) (849)
Total production
costs (7,835) (7,443) (1,996) (4,027)
Inventory change 2 (64) 2 292
Cost of sales (7,833) (7,507) (1,994) (3,735)
Adjusted gross
profit (loss) 5,348 5,134 (34) 3,914
Unrealised non-hedge
derivatives and
other
commodity contracts - 2 - (10)
Gross profit (loss) 5,348 5,136 (34) 3,904
Corporate and other
costs (60) (49) (15) (229)
Exploration (6) (352) (266) (566)
Intercompany
transactions - (238) (9) (13)
Special items (84) 3,834 246 16
Operating profit
(loss) 5,199 8,331 (78) 3,113
Net finance (costs)
income, unwinding of
obligations and fair
value adjustments (26) (4) 17 (21)
Exchange gain (loss) - (53) (2) 89
Share of equity
accounted
investments
profit (loss) - - - (104)
Profit (loss) before
taxation 5,173 8,274 (63) 3,078
Taxation (1,609) (1,512) 4 (461)
Profit (loss) for
the period 3,564 6,762 (59) 2,617
Equity shareholders 3,564 6,664 (59) 2,534
Non-controlling
interests - 97 - 83
Operating profit
(loss) 5,199 8,331 (78) 3,113
Unrealised non-hedge
derivatives and
other commodity
contracts - (2) - 10
Intercompany
transactions - 238 9 13
Special items 100 (3,691) (21) (10)
Share of associates`
EBIT - - - (104)
EBIT 5,298 4,876 (91) 3,021
Amortisation of
assets 1,830 1,063 194 849
Share of associates`
amortisation - - - -
EBITDA 7,128 5,939 103 3,870
Profit (loss)
attributable to
equity shareholders 3,564 6,664 (59) 2,534
Special items 100 (3,691) (21) (10)
Share of associates`
special items - - - -
Taxation on items
above (51) (2) 6 1
Headline earnings
(loss) 3,613 2,971 (74) 2,525
Unrealised non-hedge
derivatives and
other commodity
contracts - (2) - 10
Deferred tax on
unrealised non-hedge
derivatives and
other commodity
contracts - - - -
Fair value
adjustment on option
component
of convertible bonds - - - -
Fair value loss on
mandatory
convertible - - - -
Adjusted headline
earnings (loss) 3,613 2,969 (74) 2,534
Ore reserve
development capital 1,419 257 67 338
Stay-in-business
capital 604 1,130 43 568
Project capital 429 481 322 1,249
Total capital
expenditure 2,453 1,868 433 2,155
FINANCIAL RESULTS -
NINE MONTHS Corporate Less equity
and other Sub-total accounted Total group
ENDED SEPTEMBER 2011
ZAR`m
Gold income - 35,431 (1,967) 33,464
Cash costs 131 (17,877) 1,099 (16,779)
By-products revenue 7 1,225 (5) 1,220
Total cash costs 139 (16,652) 1,093 (15,558)
Retrenchment costs - (74) 1 (73)
Rehabilitation and
other non-cash costs - (501) 4 (497)
Amortisation of assets (62) (3,998) 44 (3,954)
Total production costs 77 (21,225) 1,142 (20,083)
Inventory change - 232 (11) 221
Cost of sales 77 (20,993) 1,131 (19,863)
Adjusted gross profit
(loss) 77 14,439 (837) 13,602
Unrealised non-hedge
derivatives and other
commodity contracts - (7) - (7)
Gross profit (loss) 77 14,431 (837) 13,594
Corporate and other
costs (1,269) (1,622) (5) (1,626)
Exploration (203) (1,393) 26 (1,367)
Intercompany
transactions 259 - - -
Special items (3,901) 111 - 111
Operating profit (loss) (5,037) 11,528 (816) 10,712
Net finance (costs)
income, unwinding of
obligations and fair
value adjustments 553 519 (20) 499
Exchange gain (loss) 36 70 23 92
Share of equity
accounted investments
profit (loss) (47) (152) 547 396
Profit (loss) before
taxation (4,496) 11,965 (266) 11,699
Taxation (30) (3,608) 266 (3,342)
Profit (loss) for the
period (4,526) 8,357 - 8,357
Equity shareholders (4,545) 8,158 - 8,158
Non-controlling
interests 19 199 - 199
Operating profit (loss) (5,037) 11,528 (816) 10,712
Unrealised non-hedge
derivatives and
other commodity
contracts - 7 - 7
Intercompany
transactions (259) - - -
Special items 3,852 231 - 231
Share of associates`
EBIT (30) (134) 816 682
EBIT (1,471) 11,633 - 11,633
Amortisation of assets 62 3,998 (44) 3,954
Share of associates`
amortisation - - 44 44
EBITDA (1,409) 15,631 - 15,631
Profit (loss)
attributable to equity
shareholders (4,545) 8,158 - 8,158
Special items 3,852 230 - 230
Share of associates`
special items 17 17 - 17
Taxation on items above - (46) - (46)
Headline earnings
(loss) (676) 8,359 - 8,359
Unrealised non-hedge
derivatives and
other commodity
contracts - 7 - 7
Deferred tax on
unrealised non-hedge
derivatives and other
commodity contracts - - - -
Fair value adjustment
on option component
of convertible bonds (677) (677) - (677)
Fair value loss on
mandatory convertible (647) (647) - (647)
Adjusted headline
earnings (loss) (2,000) 7,043 - 7,043
Ore reserve
development capital - 2,081 - 2,081
Stay-in-business
capital 96 2,442 (27) 2,414
Project capital - 2,482 (376) 2,105
Total capital
expenditure 96 7,005 (404) 6,601
Rounding of figures may result in computational discrepancies.
METRIC OPERATING RESULTS Continental
South Africa Africa Australasia
NINE MONTHS ENDED
SEPTEMBER 2010
UNDERGROUND OPERATION
YArea mined - 000 m2 932 - -
Mined - 000 tonnes 5,580 1,406 425
Milled /
Treated - 000 tonnes 5,188 1,383 360
Yield - g/t 7.09 5.26 4.07
Gold produced - kg 36,779 7,270 1,467
SURFACE AND
DUMP
RECLAMATION
Milled /
Treated - 000 tonnes 7,540 783 -
Yield - g/t 0.52 0.66 -
Gold produced - kg 3,947 519 -
OPEN-PIT
OPERATION
Volume mined - 000 bcm - 35,978 3,830
Mined - 000 tonnes - 84,691 10,674
Treated - 000 tonnes - 15,947 2,355
Stripping
ratio - ratio - 4.03 4.88
Yield - g/t - 1.59 3.26
Gold produced - kg - 25,384 7,671
HEAP LEACH
OPERATION
Mined - 000 tonnes - 3,576 -
Placed - 000 tonnes - 865 -
Stripping
ratio - ratio - 6.95 -
Yield - g/t - 1.33 -
Gold placed - kg - 1,147 -
Gold produced - kg - 1,595 -
PRODUCTIVITY
PER EMPLOYEE
Actual -g 171 351 2,071
TOTAL
Subsidiaries`
gold produced - kg 40,726 28 170 9 138
Joint
ventures`
gold produced - kg - 6,598 -
Attributable
gold produced - kg 40,726 34,768 9,138
Minority gold
produced - kg - 1,112 -
Subsidiaries`
gold sold - kg 40,912 27,804 9,048
Joint
ventures`
gold sold - kg - 6,479 -
Attributable
gold sold - kg 40,912 34,283 9,048
Minority gold
sold - kg - 1,100 -
Spot price - R/kg 282,015 282,015 282,015
Price received- R/kg sold 133,050 169,782 149,985
Price received
excluding hedge
buy-back costs- R/kg sold 259,727 262,212 255,266
Total cash
costs - R/kg produced 141,479 164,043 242,225
Total
production
costs - R/kg produced 188,239 196,855 261,039
METRIC OPERATING RESULTS
Americas Total group
NINE MONTHS ENDED SEPTEMBER 2010
UNDERGROUND OPERATION
YArea mined - 000 m2 - 932
Mined - 000 tonnes 1,367 8,778
Milled / Treated - 000 tonnes 1,421 8,353
Yield - g/t 6.40 6.54
Gold produced - kg 9,099 54,615
SURFACE AND DUMP RECLAMATION
Milled / Treated - 000 tonnes - 8,323
Yield - g/t - 0.54
Gold produced - kg - 4,466
OPEN-PIT OPERATION
Volume mined - 000 bcm - 39,808
Mined - 000 tonnes 21,595 116,961
Treated - 000 tonnes 780 19,083
Stripping ratio - ratio 25.41 5.01
Yield - g/t 5.89 1.97
Gold produced - kg 4,598 37,653
HEAP LEACH OPERATION
Mined - 000 tonnes 46,124 49,700
Placed - 000 tonnes 15,702 16,567
Stripping ratio - ratio 1.98 2.12
Yield - g/t 0.48 0.52
Gold placed - kg 7,485 8,631
Gold produced - kg 6,386 7,981
PRODUCTIVITY PER EMPLOYEE
Actual -g 726 283
TOTAL
Subsidiaries` gold produced - kg 20 082 98 116
Joint ventures` gold produced - kg - 6,598
Attributable gold produced - kg 20,082 104,714
Minority gold produced - kg 2,174 3,286
Subsidiaries` gold sold - kg 20,097 97,861
Joint ventures` gold sold - kg - 6,479
Attributable gold sold - kg 20,097 104,340
Minority gold sold - kg 2,205 3,305
Spot price - R/kg 282,015 282,015
Price received - R/kg sold 142,012 148,314
Price received excluding hedge
buy-back costs - R/kg sold 258,176 259,858
Total cash costs - R/kg produced 100,855 149,953
Total production costs - R/kg produced 133,990 187,282
Rounding of figures may result in computational discrepancies.
FINANCIAL RESULTS -
NINE MONTHS Continental
South Africa Africa Australasia Americas
ENDED SEPTEMBER 2010 ZAR`m
Gold income received
(1) 10,626 9,298 2,310 5,733
Cash costs (5,947) (5,892) (2,218) (2,868)
By-products revenue 186 22 5 388
Total cash costs (5,762) (5,870) (2,213) (2,480)
Retrenchment costs (88) (2) - (13)
Rehabilitation and
other non-cash costs (32) (189) - (5)
Amortisation of
assets (1,784) (967) (172) (768)
Total production
costs (7,666) (7,029) (2,385) (3,267)
Inventory change (31) 73 13 233
Cost of sales (7,697) (6,955) (2,372) (3,034)
Adjusted gross
profit (loss)
excluding
hedge buy-back costs 2,929 2,343 (62) 2,700
Hedge buy-back costs (5,183) (3,169) (953) (2,335)
Adjusted gross
profit (loss) (2,254) (826) (1,015) 365
Unrealised non-hedge
derivatives and
other
commodity contracts 5,778 634 75 2,616
Gross profit (loss) 3,525 (192) (940) 2,981
Corporate and other
costs (50) (36) (8) (151)
Exploration (5) (257) (236) (451)
Intercompany
transactions - (186) (8) (11)
Special items (180) (180) 58 (2)
Operating profit
(loss) 3,290 (851) (1,134) 2,367
Net finance (costs)
income, unwinding of
obligations and fair
value adjustments (9) (42) - 14
Exchange gain (loss) - (80) - (59)
Share of equity
accounted
investments
profit (loss) - - - (1)
Profit (loss) before
taxation 3,281 (973) (1,135) 2,321
Taxation 13 (833) 28 (624)
Profit (loss) for
the period 3,294 (1,806) (1,106) 1,697
Equity shareholders 3,294 (1,877) (1,106) 1,549
Non-controlling
interests - 71 - 148
Operating profit
(loss) 3,290 (851) (1,134) 2,367
Unrealised non-hedge
derivatives and
other commodity
contracts (5,778) (634) (75) (2,616)
Hedge buy-back costs 5,183 3,169 953 2,335
Intercompany
transactions - 186 8 11
Special items 237 80 (45) 6
Share of associates`
EBIT - - - (1)
EBIT 2,930 1,950 (294) 2,101
Amortisation of
assets 1,784 967 172 768
Share of associates`
amortisation - - - -
EBITDA 4,715 2,917 (122) 2,870
Profit (loss)
attributable to
equity shareholders 3,294 (1,877) (1,106) 1,549
Special items 237 80 (45) 6
Share of associates`
special items - - - -
Taxation on items
above (55) (23) 2 (8)
Headline earnings
(loss) 3,476 (1,819) (1,149) 1,547
Unrealised non-hedge
derivatives and
other commodity
contracts (5,778) (634) (75) (2,616)
Deferred tax on
unrealised non-hedge
derivatives and
other commodity
contracts 1,892 - 23 -
Fair value
adjustment on option
component
of convertible bond - - - -
Fair value loss on
mandatory
convertible bond - - - -
Hedge buy-back and
related costs
net of taxation 3,717 3,148 953 2,335
Adjusted headline
earnings (loss) 3,306 695 (249) 1,265
Ore reserve
development capital 1,353 198 94 282
Stay-in-business
capital 491 460 65 439
Project capital 243 364 60 767
Total capital
expenditure 2,087 1,022 219 1,488
FINANCIAL RESULTS -
NINE MONTHS Corporate Less equity
and other Sub-total accounted Total group
ENDED SEPTEMBER 2010 ZAR`m
Gold income received
(1) - 27,967 (1,819) 26,148
Cash costs 191 (16,735) 1,050 (15,685)
By-products revenue 17 617 (3) 614
Total cash costs 208 (16,118) 1,046 (15,072)
Retrenchment costs - (104) 2 (102)
Rehabilitation and
other non-cash costs - (227) (1) (228)
Amortisation of assets (49) (3,740) 49 (3,691)
Total production costs 158 (20,189) 1,096 (19,093)
Inventory change - 289 (15) 274
Cost of sales 158 (19,900) 1,081 (18,819)
Adjusted gross profit
(loss) excluding
hedge buy-back costs 158 8,067 (738) 7,329
Hedge buy-back costs - (11,639) - (11,639)
Adjusted gross profit
(loss) 158 (3,572) (738) (4,310)
Unrealised non-hedge
derivatives and other
commodity contracts - 9,104 - 9,104
Gross profit (loss) 158 5,532 (738) 4,794
Corporate and other
costs (945) (1,191) (1) (1,192)
Exploration (172) (1,121) 13 (1,108)
Intercompany
transactions 205 - - -
Special items (376) (679) (8) (686)
Operating profit (loss) (1,130) 2,542 (734) 1,808
Net finance (costs)
income, unwinding of
obligations and fair
value adjustments (458) (496) 1 (495)
Exchange gain (loss) 62 (78) 3 (75)
Share of equity
accounted investments
profit (loss) 16 16 387 403
Profit (loss) before
taxation (1,510) 1,984 (343) 1,641
Taxation (67) (1,483) 343 (1,140)
Profit (loss) for the
period (1,577) 501 - 501
Equity shareholders (1,627) 233 - 233
Non-controlling
interests 50 268 - 268
Operating profit (loss) (1,130) 2,542 (734) 1,808
Unrealised non-hedge
derivatives and
other commodity
contracts - (9,104) - (9,104)
Hedge buy-back costs 422 12,060 - 12,060
Intercompany
transactions (205) - - -
Special items 14 292 8 299
Share of associates`
EBIT (22) (23) 726 703
EBIT (921) 5,767 - 5,767
Amortisation of assets 49 3,740 (49) 3,691
Share of associates`
amortisation - - 49 49
EBITDA (872) 9,507 - 9,507
Profit (loss)
attributable to equity
shareholders (1,627) 233 - 233
Special items 14 292 8 299
Share of associates`
special items (40) (40) (8) (47)
Taxation on items above - (83) - (83)
Headline earnings
(loss) (1,652) 402 - 402
Unrealised non-hedge
derivatives and
other commodity
contracts - (9,104) - (9,104)
Deferred tax on
unrealised non-hedge
derivatives and other
commodity contracts - 1,915 - 1,915
Fair value adjustment
on option component
of convertible bond (319) (319) - (319)
Fair value loss on
mandatory convertible bond 160 160 - 160
Hedge buy-back and
related costs
net of taxation 422 10,573 - 10,573
Adjusted headline
earnings (loss) (1,389) 3,626 - 3,626
Ore reserve
development capital - 1,926 - 1,926
Stay-in-business
capital 25 1,481 (20) 1,461
Project capital - 1,434 (183) 1,251
Total capital
expenditure 25 4,841 (203) 4,638
(1) Gold income received is gold income per income statement, (loss) gain on
realised non-hedge derivatives (note 4). Rounding of figures may result in
computational discrepancies.
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)
F B Arisman #
R Gasant
Ms N P January-Bardill
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
Michael Bedford
Telephone: +27 11 637 6273
Mobile: +27 82 374 8820
E-mail: mbedford@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@AngloGoldAshanti.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 BS13 8AE
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: +233 302 229664
Fax: +233 302 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 BuyDIRECTSM
BoNY maintains a direct share purchase
and dividend reinvestment plan for
ANGLOGOLD ASHANTI.
Telephone: +1-888-BNY-ADRS
PUBLISHED BY ANGLOGOLD ASHANTI
PRINTED BY INCE (PTY) LIMITED
Certain statements made in this communication, including, without limitation,
those concerning the economic outlook for the gold mining industry,
expectations regarding gold prices, production, cash costs and other operating
results, growth prospects and outlook of AngloGold Ashanti`s operations,
individually or in the aggregate, including the completion and commencement of
commercial operations of certain of AngloGold Ashanti`s exploration and
production projects and the completion of announced mergers and acquisitions
transactions, AngloGold Ashanti`s liquidity, capital resources and capital
expenditure and the outcome and consequences of any litigation or regulatory
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
and other factors, refer to AngloGold Ashanti`s annual report for the year
ended 31 December 2010, which was distributed to shareholders on 29 March 2011
and the company`s 2010 annual report on Form 20- F, which was filed with the
Securities and Exchange Commission in the United States on 31 May 2011. These
factors are not necessarily all of the important factors that could cause
AngloGold Ashanti`s actual results to differ materially from those expressed
in any forward-looking statements. Other unknown or unpredictable factors
could also have material adverse effects on future results. 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.
This communication contains certain "Non-GAAP" financial measures. AngloGold
Ashanti utilises certain Non-GAAP performance measures and ratios in managing
its business. Non-GAAP financial measures should be viewed in addition to, and
not as an alternative for, the reported operating results or cash flow from
operations or any other measures of performance prepared in accordance with
IFRS. In addition, the presentation of these measures may not be comparable to
similarly titled measures other companies may use.
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: 09/11/2011 07:50:00 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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