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ANG
ANANO
ANG - Anglogold Ashanti Limited - Report for the quarter and year ended 31
December 2011 Group results for the year
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
JSE Sponsor: UBS
Report for the quarter and year ended 31 December 2011 Group results for the
year....
- Record adjusted headline earnings of $1.3bn, up 65% from 2010.
- Net profit attributable to ordinary shareholders rose 20-fold to $1.55bn
- Cash flow from operating activities increased by 59% to $2.66bn.
- Total dividend of 380 South African (approximately 49 US) cents, 162% (141%)
increase from 2010.
- Production of 4.33Moz at a total cash cost of $728/oz.
- Net debt more than halved to $610m, from $1.29bn end of 2010 on the back of
strong free cash flows.
- Reserves grow 6%, or 4.4Moz, to 75.6Moz (net of depletion).
- Resources grow 5%, or 10.9Moz, to 230.9Moz (net of depletion).
For the fourth quarter...
- Adjusted headline earnings of $295m, or 76 US cents a share.
- Net profit attributable to equity shareholders $385m, from $56m a year
earlier.
- Cash inflow from operations at $644m.
- Net debt decreases further to $610m, despite higher fourth-quarter capital
expenditure and tax payments.
- Fourth-quarter dividend of 200 South African (approximately 26 US) cents
declared.
- Production of 1.114Moz at a total cash cost of $762/oz, both within guidance.
- La Colosa exploration success adds additional 3.8Moz resource; total now
16.3Moz.
Quarter
ended ended ended
Dec Sep Dec
2011 2011 2010
SA rand / Metric
Operating review
Gold
Produced - kg / oz (000) 34,650 33,970 35,703
Price received 1 - R/kg / $/oz 437,885 394,799 99,671
Price received excluding
hedge buy-back costs 1 - R/kg / $/oz 437,885 394,799 303,454
Total cash costs - R/kg / $/oz 198,267 168,935 148,474
Total production costs - R/kg / $/oz 277,397 211,460 201,465
Financial review
Adjusted gross profit
(loss) 2 - Rm / $m 5,502 5,870 (3,718)
Adjusted gross profit
excluding
hedge buy-back costs 2 - Rm / $m 5,502 5,870 3,598
Profit attributable to
equity shareholders - Rm / $m 3,124 3,304 404
- cents/share 809 855 105
Adjusted headline earnings
(loss) 3 - Rm / $m 2,375 3,310 (5,263)
- cents/share 615 857 (1,368)
Adjusted headline earnings
excluding hedge buy-back
costs 3 - Rm / $m 2,375 3,310 2,026
- cents/share 615 857 527
Cash flow from operating
activities excluding hedge
buy-back costs - Rm / $m 5,185 6,497 5,076
Capital expenditure - Rm / $m 4,251 2,925 2,572
Year
ended ended
Dec Dec
2011 2010
SA rand / Metric
Operating review
Gold
Produced - kg / oz (000) 134,699 140,418
Price received 1 - R/kg / $/oz 369,054 135,862
Price received excluding
hedge buy-back costs 1 - R/kg / $/oz 369,054 271,018
Total cash costs - R/kg / $/oz 170,129 149,577
Total production costs - R/kg / $/oz 222,811 190,889
Financial review
Adjusted gross profit (loss) 2 - Rm / $m 19,104 (8,027)
Adjusted gross profit excluding
hedge buy-back costs 2 - Rm / $m 19,104 10,927
Profit attributable to equity
shareholders - Rm / $m 11,282 637
- cents/share 2,923 171
Adjusted headline earnings
(loss) 3 - Rm / $m 9,418 (12,210)
- cents/share 2,440 (3,283)
Adjusted headline earnings
excluding hedge buy-back
costs 3 - Rm / $m 9,418 5,652
- cents/share 2,440 1,520
Cash flow from operating
activities excluding hedge
buy-back costs - Rm / $m 19,587 12,603
Capital expenditure - Rm / $m 11,259 7,413
Quarter
ended ended ended
Dec Sep Dec
2011 2011 2010
US dollar / Imperial
Operating review
Gold
Produced - kg / oz (000) 1,114 1,092 1,148
Price received 1 - R/kg / $/oz 1,684 1,713 452
Price received excluding
hedge buy-back costs 1 - R/kg / $/oz 1,684 1,713 1,372
Total cash costs - R/kg / $/oz 762 737 672
Total production costs - R/kg / $/oz 1,065 922 912
Financial review
Adjusted gross profit (loss) 2 - Rm / $m 682 816 (540)
Adjusted gross profit excluding
hedge buy-back costs 2 - Rm / $m 682 816 522
Profit attributable to equity
shareholders - Rm / $m 385 456 56
- cents/share 100 118 15
Adjusted headline earnings
(loss) 3 - Rm / $m 295 457 (764)
- cents/share 76 118 (199)
Adjusted headline earnings
excluding hedge buy-back
costs 3 - Rm / $m 295 457 294
- cents/share 76 118 76
Cash flow from operating
activities excluding hedge
buy-back costs - Rm / $m 644 863 679
Capital expenditure - Rm / $m 525 408 365
Year
ended ended
Dec Dec
2011 2010
US dollar / Imperial
Operating review
Gold
Produced - kg / oz (000) 4,331 4,515
Price received 1 - R/kg / $/oz 1,576 561
Price received excluding
hedge buy-back costs 1 - R/kg / $/oz 1,576 1,159
Total cash costs - R/kg / $/oz 728 638
Total production costs - R/kg / $/oz 950 816
Financial review
Adjusted gross profit (loss) 2 - Rm / $m 2,624 (1,191)
Adjusted gross profit excluding
hedge buy-back costs 2 - Rm / $m 2,624 1,507
Profit attributable to equity
shareholders - Rm / $m 1,552 76
- cents/share 402 20
Adjusted headline earnings
(loss) 3 - Rm / $m 1,297 (1,758)
- cents/share 336 (473)
Adjusted headline earnings
excluding hedge buy-back
costs 3 - Rm / $m 1,297 787
- cents/share 336 212
Cash flow from operating
activities excluding hedge
buy-back costs - Rm / $m 2,655 1,669
Capital expenditure - Rm / $m 1,527 1,015
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 31 December 2011
Production Total cash costs
oz (000) % Variance 2 $/oz % Variance 2
SOUTH AFRICA 398 1 696 (8)
Great Noligwa 20 (20) 1 280 2
Kopanang 66 (15) 766 9
Moab Khotsong 52 (27) 825 15
Mponeng 138 18 518 (12)
Savuka 13 - 810 (13)
TauTona 72 24 692 (24)
Surface Operations 37 16 714 (19)
CONTINENTAL AFRICA 419 2 799 8
Ghana
Iduapriem 50 4 968 12
Obuasi 81 4 896 8
Guinea
Siguiri - Attributable 85% 62 11 1 047 10
Mali
Morila - Attributable 40% 3 28 17 771 (6)
Sadiola - Attributable
41% 3 28 (10) 1 015 28
Yatela - Attributable 40% 3 7 (13) 1 915 24
Namibia
Navachab 19 19 930 (16)
Tanzania
Geita 144 (3) 486 3
Non-controlling
interests, exploration
and other
AUSTRALASIA 63 26 1 478 (6)
Australia
Sunrise Dam 63 26 1 388 (11)
Exploration and other
AMERICAS 234 (2) 612 17
Argentina
Cerro Vanguardia -
Attributable 92.50% 51 (2) 577 95
Brazil
AngloGold Ashanti
Mineracao 91 (10) 597 8
Serra Grande -
Attributable 50% 21 40 626 (32)
United States of America
Cripple Creek & Victor 71 3 643 15
Non-controlling
interests, exploration
and other
OTHER
Sub-total 1 114 2 762 3
Equity accounted
investments included above
AngloGold Ashanti
Adjusted
gross profit (loss)
$m $m Variance 1
SOUTH AFRICA 320 30
Great Noligwa 3 (3)
Kopanang 47 (14)
Moab Khotsong 26 (19)
Mponeng 145 32
Savuka 10 (1)
TauTona 54 26
Surface Operations 35 9
CONTINENTAL AFRICA 207 (118)
Ghana
Iduapriem 20 (12)
Obuasi (19) (66)
Guinea
Siguiri - Attributable 85% 25 (17)
Mali
Morila - Attributable 40% 3 23 2
Sadiola - Attributable 41% 3 18 (9)
Yatela - Attributable 40% 3 (3) (4)
Namibia
Navachab 9 2
Tanzania
Geita 128 (14)
Non-controlling interests, exploration
and other 6 -
AUSTRALASIA (9) (9)
Australia
Sunrise Dam (2) (3)
Exploration and other (6) (6)
AMERICAS 186 (66)
Argentina
Cerro Vanguardia - Attributable 92.50% 30 (34)
Brazil
AngloGold Ashanti Mineracao 68 (30)
Serra Grande - Attributable 50% 14 5
United States of America
Cripple Creek & Victor 61 (8)
Non-controlling interests, exploration and other 15 2
OTHER 16 20
Sub-total 720 (144)
Equity accounted investments included above (38) 10
AngloGold Ashanti 682 (134)
1 Refer to note B "Non-GAAP disclosure" for the definition.
2 Variance December 2011 quarter on September 2011 quarter - increase
(decrease).
3 Equity accounted joint ventures.
Rounding of figures may result in computational discrepancies.
Financial and Operating Report
OVERVIEW FOR THE YEAR AND QUARTER
FINANCIAL AND CORPORATE REVIEW
ANNUAL REVIEW
Full-year adjusted headline earnings 1 increased 65% to a record $1.3bn, or 336
US cents per share, from $787m, or 212 US cents per share in 2010. Net profit
attributable to ordinary shareholders rose approximately twentyfold to $1.55bn
for the full-year, compared with $76m in 2010. Cash flow generated from
operating activities 1 rose to $2.66bn from $1.67bn the previous year. Free cash
flow, after all capital expenditure, finance costs and tax, before dividends,
was $833m.
The strong performance in earnings and cash flow was aided by the continued
implementation of the Project ONE business improvement initiative across all
operating sites, as well as the removal of the hedge book which gave AngloGold
Ashanti full exposure to the higher gold price.
Total capital expenditure for 2011, the first year of intensive investment in
AngloGold Ashanti`s medium-term growth plan, was $1.53bn compared with guidance
of $1.6bn. Improved cash flow helped more than halve net debt to $610m at the
end of the year, from $1.288bn at the end of 2010.
Production in 2011 declined 4% to 4.33Moz, in line with the revised annual
guidance issued by the company in November. Total cash costs rose 14% from 2010
to $728/oz, better than the revised guidance of $735/oz to $745/oz.
Reserves 2 improved by 6% or 4.4Moz to end the year at 75.6Moz, after accounting
for depletion. Resources 3 increased by 5% to 230.9Moz after depletion. These
reserves will fill the pipeline for growth to between 5.4Moz and 5.6Moz, from a
combination of greenfields and brownfields projects in the Americas, Australasia
and Continental Africa.
"With record adjusted headline earnings of $1.3bn and stronger cash flow than
we`ve ever seen, we`ve laid a strong foundation on which to grow the business,"
Chief Executive Officer Mark Cutifani said. "Our focus now is on pushing our
projects through the pipeline and ensuring continued strong returns for our
shareholders."
FOURTH-QUARTER REVIEW
Strong performances from key assets within the Continental Africa portfolio,
good cost containment in South Africa, along with full exposure to a spot gold
price and weaker producer currencies, drove robust fourth-quarter earnings and
cash- flow generation. As indicated in the third-quarter results presentation in
November, fourth-quarter Adjusted Headline Earnings (AHE) 1 was adversely
impacted by year-end accounting adjustments such as environmental
rehabilitation, direct and indirect taxes and inventory provisions.
AHE 1 were $295m, or 76 US cents a share in the three months to 31 December
2011. This earnings figure includes the $105m after tax adverse impact of the
group environmental provisions. Fourth quarter`s AHE 1 were also adversely
impacted by a lower gold price, higher cash costs and relatively higher levels
of unsold gold at the quarter-end. AHE1 in the fourth quarter of 2010 was $294m,
or 76 US cents a share, while AHE 1 for the third quarter of 2011 was $457m, or
118 US cents per share, which was boosted by a $70m once-off deferred tax
credit.
Fourth quarter net earnings attributable to ordinary shareholders were $385m, a
sevenfold increase from the fourth quarter of 2010. This includes the benefit of
the impairment reversal at Geita ($95m after tax). Impairments are included in
net profit but are excluded from headline earnings.
Cash flow generated from operating activities rose to $644m during the fourth
quarter compared with an outflow of $382m a year earlier, when the final tranche
of the hedge book was eliminated. Free cash flow, after all capital expenditure,
finance costs and tax, before dividends, was $97m. These robust inflows helped
further strengthen the group`s balance sheet. Net debt (excluding the mandatory
convertible bond) was further reduced by $10m, to $610m, despite a 29% increase
in capital spending from the previous quarter to $525m and higher tax payments.
DIVIDEND
The board of directors is pleased to announce a dividend of 200 South African
cents for the fourth quarter. This takes the annual dividends declared to 380
South African cents, 162% more than the 145 South African cents declared in
2010. The company will continue to seek quarterly dividends in line with
improved operating and financial performance, provided there is no threat to its
investment-grade-credit rating and there is adequate allowance for funding its
growth projects.
1 Normalised for hedge takeout
2 Calculated at a gold price of US$1,100/oz
3 Calculated at a gold price of US$1,600/oz
OPERATING RESULTS
Production for the three months to 31 December 2011 was 1.114Moz at a total cash
cost of $762/oz. This compares with guidance of 1.11Moz at $790/oz and the
previous quarter`s production of 1.092Moz at $737/oz. The fourth quarter`s
result was bolstered by another solid performance from Geita in Tanzania, where
the turnaround of the past 18 months continued and Obuasi, in Ghana, where the
taskforce appointed in 2010, continued to make progress in improving the
operation`s performance. There were also strong performances at Mponeng,
TauTona, Sunrise Dam and Serra Grande.
SAFETY
Tragically, three fatalities were recorded at the Kopanang mine during the
quarter, while two contractors passed away following accidents at Obuasi in
Ghana and another at the Gramalote project in Colombia. This result undermines
much of the progress made earlier in the year and has led the global safety team
to develop new major incident risk protocols which set out operating
requirements designed to minimise the likelihood of fatalities and high-severity
incidents. These protocols will be rolled out in the second quarter of 2012 as
part of a crucial effort to further improve the group`s safety performance. This
initiative will build on the significant improvements made in recent years, with
the all accident frequency rate (AIFR) - the broadest measure of safety
performance - ending 2011 at a company record of 9.76 per million hours worked,
15% better than the 2010 level. This is the first time the rate has dropped
below 10. The Continental Africa region was the star performer in the group in
2011, with an AIFR of 3.03 per million hours worked, a 42% improvement on the
previous year.
OPERATING REVIEW
The South African operations produced 398,000oz at a total cash cost of $696/oz
in the three months through 31 December 2011 compared with 394,000oz at a total
cash cost of $757/oz the previous quarter. The marginal production increase over
the previous quarter, which was affected by an industry-wide strike, was
achieved despite extensive disruption from Section 54 safety stoppages which
impacted the Vaal River operations in particular. The improvement in costs
resulted from the higher production, normalisation of power tariffs following
the higher-cost winter period, a higher by-product contribution and the weaker
rand versus the dollar. At the West Wits Operations, Mponeng`s production
increased by 18% to 138,000oz on a normalised operating schedule, while total
cash costs improved by 12% to $518/oz. At neighbouring TauTona, output rose 24%
to 72,000oz and total cash costs declined by 24% to $692/oz. The previous
quarter`s performance had been impacted by the strike, as well increased
seismicity. At the Vaal River Operations, operational difficulties in high-grade
areas at Great Noligwa contributed to a 20% drop in production to 20,000oz,
compared with the third quarter. The increase in total cash costs, however, was
contained at 2%, rising to $1,280/oz. Moab Khotsong`s costs rose 15% from the
previous quarter to $825/oz following a 27% drop in gold production to 52,000oz
given the increased number of safety stoppages imposed by the state mine
inspector and also the increased complexity of the geology at the mine.
Kopanang, which also suffered the safety-related stoppages, experienced a 15%
decline in production. Total cash cost increase was contained at 9% to $766/oz,
assisted by a favourable by-product contribution. The Surface Operations
achieved a 16% increase in production to 37,000oz following fewer interruptions
and higher grades. Unit cash costs improved by 19% to $714/oz, despite increased
maintenance to operational infrastructure during the quarter. Uranium production
was marginally down from the previous quarter to 316,000lbs.
The Continental Africa operations produced 419,000oz at a total cash cost of
$799/oz in the fourth quarter of 2011, compared with 411,000z at a total cash
cost of $739/oz the previous quarter. Geita delivered another strong quarter,
though production was 3% lower at 144,000oz following repairs to the SAG Mill
gearbox. This was, however, partially offset by a 12% increase in recovered
grade. Total cash costs increased by 3% to $486/oz. At Obuasi, in Ghana,
production was 4% higher at 81,000oz due to availability of higher-grade ore
blocks and increased equipment availability underground. Total cash costs were
8% higher at $896/oz because of higher labour costs at the Ghana operations,
year- end obsolete consumable stock write-offs and increased use of engineering
spares consumption in line with the preventative maintenance cycle. At
Iduapriem, production increased by 4% to 50,000oz as a result of access to
higher grade ore, which was in turn partly offset by a lower tonnage throughput
following reduced plant availability. Total cash costs increased by 12% to
$968/oz mainly due to the increased payroll costs and stock write-offs. At
Siguiri, in Guinea, production was 11% higher at 62,000oz as tonnage throughput
increased following efficiencies flowing from Project ONE and improved weather
conditions. Total cash costs rose 10% to $1,047/oz after wage settlements during
the period and adjustments to year-end stocks. At Morila, in Mali, higher
recovered grades from stockpiles led to a 17% increase in production and a 6%
improvement in costs. At Sadiola, lower grades caused a 10% decline in
production to 28,000oz while total cash costs increased by 28% to $1,015/oz
following the lower output and increased contractor rates. Higher grades and
throughout, following improved plant availability on the back of Project ONE`s
implementation, helped a 19% rise in production at Navachab, in Namibia, to
19,000oz. Total cash costs improved 16% to $930/oz.
The Americas operations produced 234,000oz at a total cash cost of $612oz in the
fourth quarter of 2011, compared with 238,000oz at a total cash cost of $524/oz
the previous quarter. At AngloGold Ashanti Brasil Mineracao, production declined
by 10% to 91,000oz from the previous quarter at 101,000oz after a slight delay
in commissioning of the pressure oxidation circuit, though this was partly
offset by better-than-anticipated production from the Lamego unit.
Total cash costs rose 8% to $597/oz given general inflationary pressure, higher
maintenance costs, and lower by-product credit. At Serra Grande, attributable
production was 40% higher at 21,000oz given higher grades. Total cash costs
decreased 32% to $626/oz following the higher output and a weaker Brazilian real
against the dollar. Cerro Vanguardia`s gold production was marginally lower at
51,000oz due mainly to lower feed grade, though this was partially offset by
higher treated tonnes. The increased feed and an improvement in recovered grade
resulted in an 84% increase in silver production to 874,400oz. The impact on
total cash costs, however, was muted given shipment schedules that straddled the
quarter end. Total cash cost rose 95% to $577/oz given the resultant drop in
contribution from silver by-product credits, as well as higher costs for
catering and transportations contractors, consumption of spare parts and
building maintenance. At Cripple Creek & Victor, gold production rose 3% from
the previous quarter to 71,000oz as ore continued to be placed on newer sections
of the heap leach pad, closer to liner. Total cash cost increased by 15% to
$643/oz mainly due to lower grades mined and placed on the pad.
In Australasia, production from Sunrise Dam recovered to 63,000oz at a total
cash cost of $1,388/oz, compared with 50,000oz at $1,568/oz the previous
quarter. Whilst the pit-wall failure from the first quarter continued to impact
operations, open-pit mining recommenced with the completion of the ramp into the
open-pit operating area. A total of 347m of underground capital development and
1,926m of operational development were completed during the quarter.
PROJECTS
AngloGold Ashanti incurred capital expenditure of $525m (including joint
ventures) during the quarter, of which $179m was spent on growth projects. Of
the growth-related capital, $71m was spent in the Americas, $32m was spent in
Continental Africa, $27m in Australasia and $49m in South Africa.
Phase 2 of Moab Khotsong`s Zaaiplaats project, with a capital cost of $395m
(real) was approved by the board as was the Below 120 CLR project at Mponeng, at
a capital cost of $416m (real). These are low-risk, high return projects that
extend the life of these two cornerstone mines in South Africa.
Significant progress continued at the Kibali joint venture in the Democratic
Republic of Congo, a 19Moz mineral resource which will become the country`s
largest gold mine. AngloGold Ashanti and Randgold Resources each own a 45% stake
in Kibali while Sokimo, the state-owned gold company, owns the remainder.
AngloGold Ashanti`s board is expected to receive the final feasibility document
for approval in the coming months, though in the meantime funding will continue
for critical path items and work in order to maintain the project timeline.
The first phase of Kibali`s development will cover relocation of local
communities, construction of the metallurgical facility, one hydropower station
and back-up thermal power facility, the tailings storage facility, open pit
mining and all shared infrastructure, with initial production targeted from
around the end of 2013. The second phase of the capital programme, which will
run concurrently with Phase 1, is focused primarily on underground development
and includes a twin decline and vertical shaft system as well as three
hydropower stations. This is expected to bring the underground into first
production by the end of 2014, with steady state production targeted for the end
of 2015.
During the fourth quarter, the project progressed in line with the project
development schedule. The Relocation Action Plan at the site continued with 250
families from the Chauffeur village, the first of 14 villages identified in the
project plan, being resettled. At the end of December 2011, 499 houses had been
built and construction of the Catholic Church complex commenced. The detailed
design of the metallurgical process facility, all shared service facilities, the
tailings storage facility and general mine infrastructure were finalised in the
quarter. Detailed mine design continued and open-pit mining tenders were in
adjudication. All major long-lead items, including the winder, mills, turbines
and open-pit mining equipment were secured. Grade control drilling in the open-
pit commenced and opening of the pit was scheduled for the end of the first
quarter, 2012. Earth moving and civil engineering contract packages were put out
to tender and a shortlist of contractors identified.
The optimised feasibility study for the Mongbwalu project, in which AngloGold
Ashanti holds an 86.22% interest, is complete and will be presented to the joint
venture board for approval next month. In the meantime, funding for critical-
path items has continued to maintain the schedule for first production in 2014.
Progress continued at a good pace during the quarter, with upgrading of staff
accommodation and construction of the Bunia-Mongbwalu road. The project,
AngloGold Ashanti`s beachhead in the highly prospective Kilo goldbelt of the
north eastern DRC, comprises 18 exploitation tenements and spans roughly
5,500km2. Active green- and brownfield exploration continues in the area.
Corrego do Sitio, in Brazil, the most advanced of AngloGold Ashanti`s projects
currently in development, continued its mine ramp-up phase according to an
updated plan. Portal II, the second entrance to the underground mine, was
connected to surface in December, while haulage from this ramp commenced in
January. The autoclave circuit was also commissioned in January. The business
process framework component of Project ONE was launched at the metallurgical
plant in November and reached "stabilisation" phase during December in the heavy
mechanized equipment maintenance division and mine operational areas. By year-
end, the plant had treated 70,000t.
The Tropicana Gold Project in Australia (AngloGold Ashanti 70% and manager,
Independence Group NL 30%) remained on schedule to commence gold production in
the December 2013 quarter. The 220km access road neared completion and
earthworks for the plant site, internal access roads and the airstrip continued.
Fabrication of the permanent village buildings commenced and the village
installation contract was awarded. All key procurement packages have been
issued. The concrete contract was awarded and tenders were called for the
structural, mechanical and piping contract. Secondary statutory approvals are on
track. The operating management team has been formed, with all key positions now
in role. A new Mineral Resource estimate was completed for Tropicana with a
1.05Moz increase bringing the total resource to 6.41Moz (100% basis). The
increase is attributable to drilling in the Havana Deeps area. The full details
of the updated Mineral Resource estimate were provided in an announcement on 29
November 2011. Exploration drilling continued at Havana Deeps and in the area
between Tropicana and Havana. A total of 948m RC and 10,317m diamond drilling
was completed.
During the fourth quarter, an Australian dollar 600m revolving credit facility
was obtained from a syndicate of banks to fund the requirements of the Tropicana
project. This new facility will mature in December 2015.
EXPLORATION
Total exploration expenditure during the fourth quarter, inclusive of
expenditure at equity accounted joint ventures, was $115m ($37m on brownfield,
$43m on greenfield and $35m on pre-feasibility studies), compared with $96m the
previous quarter ($35m on brownfield, $33m on greenfield and $28m 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.
At Geita, in Tanzania, 11,431m of drilling were completed during the quarter
focusing on Mineral Resource infill drilling around the mining operations and
more regional exploration to support an Ore Reserve growth strategy. Mineral
Resource upgrade-drilling was carried out on the Nyankanga deposit at the Block
1, Block 2, Cut 7 and Cut 8 with reconnaissance drilling completed over Mzingama
and Prospect 30. In Nyankanga Block 2, borehole NYDD0303 intersected 30.5m
@10.9g/t Au from 289m with the mineralisation hosted in a well silicified banded
iron formation with abundant fine grained, disseminated pyrite and dolomite
contained within the main shear. This intercept and others continue to prove the
down dip continuity of gold mineralisation beyond the open-pit shell and
indicate significant potential for underground mining. Intensive geological and
structural pit wall mapping was undertaken in Geita Hill Cut 1 during the
quarter by the GGM- JCU research team. An IP survey was continued at Star &
Comet covering a total distance of 19.65km. A ground magnetic survey was
commenced within Kukuluma, Area 3 west and Matandani.
At Siguiri in Guinea, a total of 51,821m of drilling was completed. RC infill
drilling focused on two main projects, with the aim of upgrading oxide Mineral
Resources in Sokunu, Sokunu West and Kozan Central West. Results to date are
encouraging.
The quarter saw the discovery, on a previously unexplored trend, of a potential
oxide Mineral Resource situated 2km west of the processing plant. Drilling of
the Silakoro prospect provided the following significant drilling results:
SIAC045 7.07m @ 3.79g/t Au from 13m; SKAC1834 12.6m @ 2.08g/t Au from 63m;
SKAC1887 7.70m @ 4.48g/t Au from 10m; SIAC020 13.8m @ 5.64g/t AU from 29m.
The greenfields team continued its geochemical soil sampling programme in Guinea
during the quarter in Blocks 2, 3 and 4. Resource delineation and definition
drilling commenced at Saraya during the quarter with 1,695m of reverse
circulation drilling completed. Some of the pending assays from Saraya Main and
Saraya South were received during the quarter. Highlights include SARC288: 15m
at 3.23g/t Au from 56m; SARC284: 8m at 3.69g/t Au from 14m (including 4m @
6.67g/t Au from 16m); SARC260: 7m @ 2.3g/t Au from 62m; SARCDD017: 9m @ 2.2g/t
Au from 64m; SARC280: 4m @ 17.01g/t Au from 66m); SARC262 19m @ 3.02g/t Au from
80m; SARC259: 9m @ 2.06g/t Au from 114m.
AC reconnaissance drilling commenced at Koun Koun South extensions (Block 3);
108 holes for 8,020m have been completed during the quarter (phase 3).
Delineation diamond drilling continued at Koun Koun during the quarter; 5 holes
totalling 1,429m were completed, assay results are pending. Assay results
reported this quarter from phase 2 reconnaissance drilling have returned
encouraging intersections in the saprolite and oxide zones, which include:
KKRC029: 20m @ 1.14g/t Au from 9m; KKRC031: 18m @ 2.23g/t Au from 29m; KKRC035:
20m @ 1.43g/t Au from 29m; KKAC116: 16m @ 2.12g/t Au from 106m and; KKAC120: 27m
@ 3.21g/t Au from 87m.
In the Democratic Republic of the Congo, regional exploration continued on the
5,487km2 Kilo project. Greenfield exploration activities continued on five
projects Lodjo, Issuru, Dala, Alosi Camp 3 and Petsi. An IP survey was completed
for Camp 3 (Kilo Central) while diamond drilling continued at Pili Pili (Pluto
North- Issuru). Trenching and soil sampling continued in Kilo Central and Kilo
North.
At Obuasi in Ghana, Below 50 Level exploration drilling achieved 930m and
surface exploration continued at the Anyankyerim deposit with 3,329m drilled.
Results to date are positive. A joint Obuasi-UWA-CET 3 year research project
commenced during the quarter, with the primary deliverable an integrated 4D
model for controls on geometry of mineralisation within the Obuasi system. The
study is expected to enhance delineation of the Obuasi deeps Mineral Resource,
exploration strategies in the Ashanti belt and in the Birimian.
Greenfields exploration in the Middle East & North Africa region is being
undertaken by the Thani Ashanti strategic Alliance. Exploration during the
fourth quarter involved diamond drilling at the Hutite and Anbat prospects,
located on the Hodine licence in Egypt. Almost 6,000m of diamond drilling was
completed at Hutite and Anbat during the quarter, however results were received
from only three holes due to delays with sample processing.
In the United States, at Cripple Creek and Victor, a total of 11,085m were
drilled. RC holes from the MLE-2 Programme continued to display significant ore
grade gold mineralisation well below the 2011 WHEX & Grassy Valley Design Pit
bottoms. For example, borehole GR-952, drilled at Grassy Valley, intersected
74.7m @ 11.0g/t Au from 38m. The results from this and other holes will help to
deepen the current WHEX & Grassy Valley design pit bottoms.
At La Colosa, in Colombia, drilling progressed well with 12,886m drilled and
thirty seven boreholes completed. Five rigs continued to operate during most of
the quarter. Very significant intersections continued to be obtained on the
edges of the previously defined system and are expected to add to the overall
Mineral Resource. During the quarter the following significant intersections
were obtained from the Northern end of the deposit, which continue to expand the
northern extent of the mineralisation and provide further support to the COL138
intersection reported last quarter, COL148 202.4m @ 2.27g/t Au from 236m; COL127
243.0m @ 1.2g/t Au from 78m; COL156 101.8m @ 1.3g/t Au from 240m; COL158 190.0m
@ 1.34g/t Au from 128m; COL164 104.0m @ 2.2g/t Au from 90m.
Greenfields exploration in the Americas focused on early stage exploration in
Colombia, Canada, the United States, Brazil and Argentina. In Colombia, 249m of
shallow drilling, and 886m of deep drilling were completed at the Quebradona
joint venture to further define the nature and extent of shallow epithermal
gold, and deeper porphyry copper-gold mineralisation, respectively. A 952
station soil survey programme was also completed. The tenement holding in
Colombia by the end of the quarter stood at 15,442 km2.
At Sunrise Dam in Australia, near-mine exploration continued to focus on
extensional targets beneath the deposit and the Cosmo lode with some extensional
drilling of the recently defined Vogue mineralisation. During the quarter
20,836m were drilled from 66 diamond drill holes from surface and underground
positions. The Vogue mineralisation targets are geological complex domains that
form as extensions of the Cosmo-Dolly system and show broad domains of low and
high-grade gold mineralisation that extend for in excess of 400m in length and
to depths greater than 900m vertical. Early indications are that a significant
and broad mineralised domain exists with potential to significantly increase
Mineral Resources at Sunrise Dam. Recent intercepts that include a composite of
gold mineralisation and waste (up to 25m), include: 53.0m @ 2.00g/t Au; 118.2m @
1.63g/t Au; 124.1m @ 1.54g/t Au; includes up to 25m of continuous waste to a
cumulative total of 100m of waste, averaging >1g/t; 9.0m @ 8.25g/t; 7.2m @
5.86g/t; 8.0m @ 8.8g/t; 32.7m @ 3.45g/t; 5.0m @ 6.78g/t; 34.7m @ 2.44g/t; 6.6m @
6.33g/t; 21.0m @ 3.93g/t; 16.8m @ 3.11g/t; includes up 5m of continuous waste to
a cumulative total of 25m of waste, averaging >1g/t.
At Tropicana, a new Mineral Resource estimate was completed for Tropicana with a
1.05Moz increase bringing the total Mineral Resource to 6.41Moz (100% basis).
The increase is attributable to drilling in the Havana Deeps area. Exploration
drilling continued at Havana Deeps and in the area between Tropicana and Havana.
A total of 948m RC and 10,317m diamond drilling were completed.
Elsewhere in the Tropicana JV lease area, reconnaissance aircore drilling and
RC/diamond drilling of a number of key prospects continued on the Tropicana JV
tenements. At Iceberg, 35km south of the Tropicana Gold Mine, RC drilling
completed during the previous quarter returned encouraging results including 2m
@ 5.27g/t Au from 58m, 6m @ 1.37g/t Au from 64m and 4m @ 1.88g/t Au from 85m.
Follow-up RC drilling is planned for 2012. At the Viking project (AngloGold
Ashanti 100%) aircore drilling was completed at several prospects and results
are pending. Auger soil sampling continued to generate targets for drill testing
in 2012.
In the Solomon Islands, exploration activities continued at the Kele and Mase
Joint Ventures, which are held by AngloGold Ashanti (51%) and XDM Resources
(49%). At the Mase JV Project, reconnaissance surface sampling continued with
586 samples collected in the Mase and Pundakona regions, including 407 soil, 124
stream and 55 rock chips. A number of significant stream, soil and some rock
chip samples were returned from the Pundakona work, including a best rock chip
sample of 17.3g/t Au. Further work is planned on these in early 2012. At the
Kele JV Project, diamond drilling continued with 603m completed in three scout
holes targeting porphyry-style mineralisation at the Konga prospect.
OUTLOOK
Group`s gold production for 2012 is estimated at between 4.3Moz to 4.4Moz. Total
cash costs are estimated at between $780-$805/oz at an average exchange rate of
R7.40/$, BRL1.70/$, A$1.01/$ and AP4.43/$ and fuel at $110/barrel. Both
production and total cash costs estimates will be reviewed quarterly, in the
light of safety related stoppages currently being experienced in South Africa
and any other unforeseen factors.
Gold production for the first quarter of 2012 is estimated at 1.03Moz. Total
cash costs are estimated at between $820/oz-$835/oz at an average exchange rate
of R7.40/$, BRL1.70/$, A$1.01/$ and AP4.35/$ and fuel at $110/barrel.
Both estimates could see some downside risk in the light of safety related
stoppages currently being experienced in South Africa.
Review of the Gold Market
Gold price movement and investment markets
GOLD PRICE DATA
Fear of sovereign defaults once again dominated markets during the fourth
quarter, although this wasn`t always reflected in the gold price. Despite the
growing uncertainty over Europe`s ability to resolve its debt crisis, the gold
price never traded close to the all-time high of $1,920/oz seen in the previous
quarter. In the quarter under review gold appeared to trade as a risk asset -
experiencing selling pressure in times of heightened turmoil and not trading
like the safe haven asset it is generally seen as. Continued uncertainty over
how Europe is likely to resolve its funding crisis caused the Euro to slip
against the US dollar and the relative strength of the greenback hindered
appreciation of the gold price. Despite these headwinds, the spot gold price
still gained 11% over 2011 and averaged $1,572/oz for the year. This marks a 28%
appreciation over the average spot price of $1,227/oz in 2010 and marks the
tenth consecutive year of price appreciation - the longest bull-run in the gold
price to date.
INVESTMENT DEMAND
Towards the end of the third quarter of 2011, large scale ETF liquidation saw
sales of some 2.5Mozs of gold. However buying early in the fourth quarter
reversed this trend and by the end of October combined holdings were back around
75Mozs, the holdings level prevailing before the sell-off. Despite the failure
of the gold price to respond to the worsening crisis in Europe, ETF holdings
grew over the course of the fourth quarter and this quarter was by far the most
positive in terms of ETF growth in 2011, with 1.25Mozs being added. The two
previous quarters showed negative growth or net redemptions. At year end,
aggregate holdings for the major ETFs totalled almost 78Mozs, which represents a
7% increase of 5.2Mozs for the year. This growth is negligible in comparison to
the demand surges of the previous two years. That said, combined holdings of the
ETFs remain significant. When compared to official sector holdings, combined
ETFs rank 6th behind the USA (267Mozs), Germany (109Mozs), IMF (91Mozs), Italy
(79Mozs) and France (78Mozs). COMEX positioning through
the fourth quarter was relatively stable, with no extreme movements week on
week. Interestingly, the positioning at the end of 2011 had decreased by
almost 10Mozs from its January starting point.
Investment demand in China was flat year on year at around 60t, but since the
fourth quarter 2010 was considered a very strong quarter, performance of fourth
quarter 2011 should be seen as likewise - especially when one considers that
there was little investment activity in October as investors were skittish
following the big gold price correction in September. In India fourth quarter
investment demand suffered on the back of price volatility and the negative
impact of a weakening Rupee. The biggest market for bar and coin hoarding in
2011 was Europe and its appetite for physical gold investment products remained
strong in the last quarter of the year. In 2011 United States coin demand was
softer than in 2010 as panic over the economy eased somewhat.
OFFICIAL SECTOR
Central Bank off-take of 21t was reported in October, with Russia taking the
bulk of that at 19.5t. This activity was countered somewhat by the sale of 4.7t
by the Bundesbank as part of a commemorative coin minting programme. The
emergence of the official sector as gold buyer has become an increasingly
important factor in terms of global gold demand and GFMS estimates Official
Sector demand in 2011 to be 430t - roughly 15% of world mine production for the
year. With the appreciation of the gold price over recent years, the weighting
of gold as a percentage of certain Eurozone banks` reserves has arguably become
significant and sits at over 70% of German, Italian and French reserves.
JEWELLERY SALES
In India the fourth quarter was the second consecutive quarter experiencing a
decrease from 2010 levels of jewellery demand. High price volatility coupled
with Rupee weakness against the dollar hit the jewellery market harder than it
did investment demand. Since fabrication charges are levied on jewellery,
investment products present better value to those feeling the Rupee price
squeeze. Many players believe that the currency is undervalued and are holding
off on making purchases until the Rupee strengthens. As a result inventories
remain low. In China, the market for pure gold jewellery continued to grow in
the fourth quarter, albeit at a modest rate of 2%. Consumer fears around
inflation helped spur gold demand in both pure gold jewellery and investment
products. Shares in some of China`s major jewellery retailers showed very strong
growth in 2011, due in large part to the rising gold price and the value of pure
gold jewellery as an investment vehicle. In the United States the first three
quarters of 2011 delivered gold jewellery growth of 3% over the same period of
2010 and most retailers reported reasonably good holiday sales in the fourth
quarter. In line with the trend experienced since 2010, high-end players
continue to see the strongest growth in revenues, but the lower- and mid-end are
starting to perform better thanks to easing credit terms and the efficient
management of low inventories.
Mineral Resource and Ore Reserve
Mineral Resource and Ore Reserve are reported in accordance with the minimum
standards described by the Australasian Code for Reporting of Exploration
Results, Mineral Resource and Ore Reserve (JORC Code, 2004 Edition), and also
conform to the standards set out in the South African Code for the Reporting of
Exploration Results, Mineral Resource and Mineral Reserve (The SAMREC Code, 2007
edition). Mineral Resource is inclusive of the Ore Reserve component unless
otherwise stated.
AngloGold Ashanti strives to actively create value by growing its major asset -
the Mineral Resource and Ore Reserve. This drive is based on an active, well-
defined brownfields exploration programme, innovation in both geological
modelling and mine planning and continual optimisation of its asset portfolio.
Mineral Resource
The total Mineral Resource increased from 220.0Moz in December 2010 to 230.9Moz
in December 2011. A gross annual increase of 16.8Moz occurred before depletion,
while the net increase after allowing for depletion is 10.9Moz. Changes in
economic assumptions from December 2010 to December 2011 resulted in an 11.2Moz
increase to the Mineral Resource, whilst exploration and modelling resulted in
an increase of 7.9Moz. The remaining decrease of 2.2Moz resulted from various
other factors.
MINERAL RESOURCE Moz
Mineral Resource as at 31 December 2010 220.0
Reductions
Great Noligwa Mineral Resource reduced due to increased costs (0.6)
Other Total of non-significant changes (1.8)
Additions
Tropicana Exploration success in the underground project 0.8
Gramalote Exploration success at Trinidad 0.9
Kopanang Grade increased as a result of exploration 1.1
Geita Combined effect of price and estimation 1.3
Iduapriem Increase in Mineral Resource price 1.3
Obuasi Increase in Mineral Resource price 2.3
La Colosa Exploration success 3.8
Other Total of non-significant changes 1.7
Mineral Resource as at 31 December 2011 230.9
Rounding of numbers may result in computational discrepancies.
Mineral Resources have been estimated at a gold price of US$1,600/oz (2010:
US$1,100/oz).
ORE RESERVE
The AngloGold Ashanti Ore Reserve increased from 71.2Moz in December 2010 to
75.6Moz in December 2011. A gross annual increase of 9.6Moz occurred before
depletion of 5.2Moz. The increase net of depletion was therefore of 4.4Moz.
Changes in economic assumptions from 2010 to 2011 resulted in an increase of
4.4Moz to the Ore Reserve, while exploration and modelling resulted in a further
increase of 5.0Moz. The remaining increase of 0.2Moz resulted from various other
factors.
ORE RESERVE Moz
Ore Reserve as at 31 December 2010 71.2
Reductions
Moab Khotsong Depletion and minor model revision (0.5)
Other Total non-significant changes (1.1)
Additions
Geita Improved Ore Reserve price 0.5
Cripple Creek & Victor Mine life extension added to Ore Reserve 0.5
Vaal River Surface Technical studies showed the economic
extraction of gold and uranium from the tailings
is economic 3.2
Other Total non-significant changes 1.7
Ore Reserve as at 31 December 2011 75.6
Rounding of numbers may result in computational discrepancies.
Ore reserves have been calculated using a gold price of US$1,100/oz (2010:
US$850/oz).
By-products
Several by-products are recovered as a result of the processing of gold Ore
Reserves. In 2011, these include 57,299t of uranium oxide from the South African
operations, 408,348t of sulphur from Brazil and 46.9Moz of silver from
Argentina.
Competent persons
The information in this report relating to exploration results, Mineral
Resources and Ore Reserves is based on information compiled by the Competent
Persons. The Competent Persons consent to the inclusion of Exploration Results,
Mineral Resource and Ore Reserve information in this report, in the form and
context in which it appears.
During the past decade, the company has developed and implemented a rigorous
system of internal and external reviews of Exploration Results, Mineral
Resources or Ore Reserves. A documented chain of responsibility exists from the
Competent Persons at the operations to the company`s Mineral Resource and Ore
Reserve Steering Committee. Accordingly, the Chairman of the Mineral Resource
and Ore Reserve Steering Committee, VA Chamberlain, MSc (Mining Engineering),
BSc (Hons) (Geology), MGSSA, FAusIMM, assumes responsibility for the Mineral
Resource and Ore Reserve processes for AngloGold Ashanti and is satisfied that
the Competent Persons have fulfilled their responsibilities.
A detailed breakdown of Mineral Resource and Ore Reserve and backup detail is
provided on the AngloGold Ashanti website (www.anglogoldashanti.com).
MINERAL RESOURCE BY COUNTRY (ATTRIBUTABLE) INCLUSIVE OF ORE RESERVE
Contained Contained
Category Tonnes Grade gold gold
million g/t tonnes Moz
as at 31 December
2011
South Africa Measured 25.98 15.76 409.39 13.16
Indicated 799.63 2.57 2,056.44 66.12
Inferred 38.30 14.91 570.81 18.35
Total 863.91 3.52 3,036.65 97.63
Democratic
Republic of the
Congo Measured - - - -
Indicated 62.41 3.66 228.64 7.35
Inferred 33.16 2.90 96.07 3.09
Total 95.57 3.40 324.71 10.44
Ghana Measured 89.38 4.64 414.35 13.32
Indicated 97.81 3.42 334.74 10.76
Inferred 136.83 3.26 446.65 14.36
Total 324.04 3.69 1,195.74 38.44
Guinea Measured 37.19 0.62 22.96 0.74
Indicated 116.48 0.73 85.09 2.74
Inferred 67.18 0.79 53.17 1.71
Total 220.85 0.73 161.22 5.18
Mali Measured 12.65 1.31 16.57 0.53
Indicated 62.66 1.57 98.24 3.16
Inferred 36.58 1.04 37.96 1.22
Total 111.89 1.37 152.77 4.91
Namibia Measured 18.35 0.71 13.10 0.42
Indicated 99.78 1.22 122.04 3.92
Inferred 16.41 1.15 18.88 0.61
Total 134.54 1.14 154.01 4.95
Tanzania Measured - - - -
Indicated 106.42 2.74 291.44 9.37
Inferred 33.55 2.97 99.50 3.20
Total 139.96 2.79 309.94 12.57
Australia Measured 35.13 1.71 60.01 1.93
Indicated 50.11 2.56 128.48 4.13
Inferred 11.05 3.92 43.28 1.39
Total 96.29 2.41 231.77 7.45
Argentina Measured 11.98 1.61 19.30 0.62
Indicated 26.09 3.40 88.76 2.85
Inferred 9.14 3.17 29.01 0.93
Total 47.22 2.90 137.08 4.41
Brazil Measured 10.53 6.31 66.44 2.14
Indicated 16.41 5.74 94.23 3.03
Inferred 36.93 6.30 232.73 7.48
Total 63.88 6.16 393.40 12.65
Colombia Measured 15.56 0.85 13.24 0.43
Indicated 33.97 0.79 26.98 0.87
Inferred 564.78 0.93 527.63 16.96
Total 614.31 0.92 567.85 18.26
United States of
America Measured 280.58 0.78 217.65 7.00
Indicated 227.03 0.68 155.09 4.99
Inferred 96.04 0.65 62.16 2.00
Total 603.65 0.72 434.90 13.98
Total Measured 537.33 2.33 1,253.01 40.29
Indicated 1,698.79 2.18 3,710.18 119.29
Inferred 1,079.98 2.05 2,217.85 71.31
Total 3,316.10 2.17 7,181.04 230.88
Rounding of figures may result in computational discrepancies.
MINERAL RESOURCE BY COUNTRY (ATTRIBUTABLE) EXCLUSIVE OF ORE RESERVE
Contained Contained
Category Tonnes Grade gold gold
million g/t tonnes Moz
as at 31 December
2011
South Africa Measured 15.36 16.99 261.03 8.39
Indicated 230.15 4.01 923.55 29.69
Inferred 16.98 21.15 358.97 11.54
Total 262.49 5.88 1,543.56 49.63
Democratic
Republic of the
Congo Measured - - - -
Indicated 28.97 3.04 87.97 2.83
Inferred 33.16 2.90 96.07 3.09
Total 62.13 2.96 184.03 5.92
Ghana Measured 20.74 5.15 106.80 3.43
Indicated 64.26 3.63 233.54 7.51
Inferred 136.67 3.27 446.64 14.36
Total 221.66 3.55 786.98 25.30
Guinea Measured 0.83 0.54 0.45 0.01
Indicated 41.37 0.74 30.64 0.99
Inferred 67.18 0.79 53.17 1.71
Total 109.39 0.77 84.26 2.71
Mali Measured 4.73 0.86 4.09 0.13
Indicated 31.26 1.26 39.43 1.27
Inferred 36.58 1.04 37.96 1.22
Total 72.57 1.12 81.48 2.62
Namibia Measured 7.57 0.53 4.01 0.13
Indicated 53.86 1.06 56.88 1.83
Inferred 16.41 1.15 18.88 0.61
Total 77.85 1.02 79.77 2.56
Tanzania Measured - - - -
Indicated 50.59 2.84 143.72 4.62
Inferred 33.55 2.97 99.50 3.20
Total 84.14 2.89 243.22 7.82
Australia Measured 2.27 0.58 1.32 0.04
Indicated 18.02 2.78 50.18 1.61
Inferred 10.72 3.99 42.78 1.38
Total 31.02 3.04 94.28 3.03
Argentina Measured 2.80 2.08 5.81 0.19
Indicated 22.22 2.13 47.28 1.52
Inferred 9.14 3.17 29.01 0.93
Total 34.16 2.40 82.11 2.64
Brazil Measured 2.86 7.39 21.13 0.68
Indicated 7.02 6.53 45.82 1.47
Inferred 35.80 6.37 228.05 7.33
Total 45.67 6.46 295.00 9.48
Colombia Measured 15.56 0.85 13.24 0.43
Indicated 33.97 0.79 26.98 0.87
Inferred 564.78 0.93 527.63 16.96
Total 614.31 0.92 567.85 18.26
United States of
America Measured 119.80 0.71 85.17 2.74
Indicated 140.43 0.66 93.03 2.99
Inferred 82.15 0.66 54.08 1.74
Total 342.39 0.68 232.28 7.47
Total Measured 192.52 2.61 503.06 16.17
Indicated 722.13 2.46 1,779.02 57.20
Inferred 1,043.12 1.91 1,992.74 64.07
Total 1,957.76 2.18 4,274.82 137.44
Rounding of figures may result in computational discrepancies.
ORE RESERVE BY COUNTRY (ATTRIBUTABLE)
Contained Contained
Category Tonnes Grade gold gold
million g/t tonnes Moz
as at 31 December
2011
South Africa Proved 11.89 8.85 105.17 3.38
Probable 573.65 1.57 903.41 29.05
Total 585.54 1.72 1,008.58 32.43
Democratic
Republic of the
Congo Proved - - - -
Probable 33.44 4.21 140.69 4.52
Total 33.44 4.21 140.69 4.52
Ghana Proved 42.73 3.08 131.77 4.24
Probable 53.94 4.43 239.06 7.69
Total 96.67 3.84 370.83 11.92
Guinea Proved 35.72 0.61 21.90 0.70
Probable 72.18 0.69 42.97 1.61
Total 107.90 0.67 71.87 2.31
Mali Proved 5.20 1.91 9.93 0.32
Probable 43.13 1.56 67.20 2.16
Total 48.33 1.60 77.13 2.48
Namibia Proved 6.31 1.09 6.88 0.22
Probable 44.18 1.29 56.88 1.83
Total 50.49 1.26 63.76 2.05
Tanzania Proved - - - -
Probable 55.81 2.64 147.11 4.73
Total 55.81 2.64 147.11 4.73
Australia Proved 32.86 1.79 58.69 1.89
Probable 23.98 2.55 73.95 2.38
Total 61.84 2.14 132.64 4.26
Argentina Proved 10.56 1.35 14.30 0.46
Probable 12.85 4.25 54.64 1.76
Total 23.41 2.95 68.94 2.22
Brazil Proved 7.01 5.51 38.65 1.24
Probable 7.84 4.68 36.65 1.18
Total 14.85 5.07 75.30 2.42
United States of
America Proved 160.78 0.82 132.48 4.26
Probable 86.60 0.72 62.06 2.00
Total 247.38 0.79 194.54 6.25
Total Proved 313.07 1.66 519.78 16.71
Probable 1,012.60 1.81 1,831.63 58.89
Total 1,325.67 1.77 2,351.40 75.60
Rounding of figures may result in computational discrepancies.
Group income statement
Quarter Quarter Quarter
ended ended ended
December September December
2011 2011 2010
SA Rand million Notes Unaudited Reviewed Unaudited
Revenue 2 15 034 13 428 11 095
Gold income 14 385 12 850 10 614
Cost of sales 3 (8 883) (6 980) (7 016)
Loss on non-hedge derivatives
and other
commodity contracts 4 (2) (5) (529)
Gross profit 5 500 5 865 3 069
Corporate administration,
marketing and other expenses (623) (488) (518)
Exploration costs (672) (541) (338)
Other operating income
(expenses) 5 38 (84) (27)
Special items 6 1 191 (97) (208)
Operating profit 5 434 4 655 1 978
Interest received 185 75 119
Exchange (loss) gain (76) 123 93
Fair value adjustment on
option component of
convertible bonds (113) 88 (280)
Finance costs and unwinding of
obligations 7 (389) (345) (357)
Fair value adjustment on
mandatory convertible bonds 84 66 (222)
Share of equity accounted
investments` profit 137 175 63
Profit before taxation 5 262 4 837 1 394
Taxation 8 (1 996) (1 465) (878)
Profit for the period 3 266 3 372 516
Allocated as follows:
Equity shareholders 3 124 3 304 404
Non-controlling interests 142 68 112
3 266 3 372 516
Basic earnings per ordinary
share (cents) 1 809 855 105
Diluted earnings per ordinary
share (cents) 2 768 788 105
Year Year
ended ended
December December
2011 2010
SA Rand million Reviewed Audited
Revenue 50 411 40 135
Gold income 47 849 38 833
Cost of sales (28 745) (25 833)
Loss on non-hedge derivatives and other
commodity contracts (9) (5 136)
Gross profit 19 095 7 864
Corporate administration, marketing and other
expenses (2 025) (1 589)
Exploration costs (2 039) (1 446)
Other operating income (expenses) (187) (149)
Special items 1 302 (894)
Operating profit 16 146 3 786
Interest received 388 311
Exchange (loss) gain 18 18
Fair value adjustment on option component of
convertible bonds 563 39
Finance costs and unwinding of obligations (1 417) (1 203)
Fair value adjustment on mandatory convertible
bonds 731 (382)
Share of equity accounted investments` profit 532 467
Profit before taxation 16 961 3 036
Taxation (5 337) (2 018)
Profit for the period 11 624 1 018
Allocated as follows:
Equity shareholders 11 282 637
Non-controlling interests 342 381
11 624 1 018
Basic earnings per ordinary share (cents) 1 2 923 171
Diluted earnings per ordinary share (cents) 2 2 533 171
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 unaudited financial statements for the quarter and year on ended 31 December
2011 have been prepared by the corporate accounting staff of AngloGold Ashanti
Limited headed by Mr John Edwin Staples, the Group`s Chief Accounting Officer.
This process was supervised by Mr Srinivasan Venkatakrishnan, the Group`s Chief
Financial Officer. The financial statements for the year ended on 31 December
2011 were reviewed, but not audited, by the Group`s statutory auditors, Ernst &
Young Inc. A copy of their review report is available for inspection at the
company`s head office.
Group income statement
Quarter Quarter Quarter
ended ended ended
December September December
2011 2011 2010
US Dollar million Notes Unaudited Reviewed Unaudited
Revenue 2 1 859 1 873 1 613
Gold income 1 779 1 793 1 543
Cost of sales 3 (1 097) (977) (1 021)
Loss on non-hedge derivatives
and other commodity contracts 4 - (1) (77)
Gross profit 682 815 445
Corporate administration,
marketing and other expenses (77) (67) (76)
Exploration costs (83) (76) (49)
Other operating income
(expenses) 5 4 (11) (4)
Special items 6 146 (13) (31)
Operating profit 672 648 285
Interest received 23 10 17
Exchange (loss) gain (10) 15 14
Fair value adjustment on
option component of
convertible bonds (15) 11 (41)
Finance costs and unwinding of
obligations 7 (48) (48) (52)
Fair value adjustment on
mandatory convertible bonds 9 9 (33)
Share of equity accounted
investments` profit 17 24 9
Profit before taxation 648 669 199
Taxation 8 (246) (204) (127)
Profit for the period 402 465 72
Allocated as follows:
Equity shareholders 385 456 56
Non-controlling interests 17 9 16
402 465 72
Basic earnings per ordinary
share (cents) 1 100 118 15
Diluted earnings per ordinary
share (cents) 2 95 109 14
Year Year
ended ended
December December
2011 2010
US Dollar million Reviewed Audited
Revenue 6 925 5 514
Gold income 6 570 5 334
Cost of sales (3 946) (3 550)
Loss on non-hedge derivatives and other
commodity contracts (1) (702)
Gross profit 2 623 1 082
Corporate administration, marketing and other
expenses (278) (220)
Exploration costs (279) (198)
Other operating income (expenses) (27) (20)
Special items 163 (126)
Operating profit 2 202 518
Interest received 52 43
Exchange (loss) gain 2 3
Fair value adjustment on option component of
convertible bonds 84 (1)
Finance costs and unwinding of obligations (196) (166)
Fair value adjustment on mandatory convertible bonds 104 (55)
Share of equity accounted investments` profit 73 63
Profit before taxation 2 321 405
Taxation (723) (276)
Profit for the period 1 598 129
Allocated as follows:
Equity shareholders 1 552 76
Non-controlling interests 46 53
1 598 129
Basic earnings per ordinary share (cents) 1 402 20
Diluted earnings per ordinary share (cents) 2 346 20
1 Calculated on the basic weighted average number of ordinary shares.
2 Calculated on the diluted weighted average number of ordinary shares.
Rounding of figures may result in computational discrepancies.
Group statement of comprehensive income
Quarter Quarter Quarter
ended ended ended
December September December
2011 2011 2010
SA Rand million Unaudited Reviewed Unaudited
Profit for the period 3 266 3 372 516
Exchange differences on translation of
foreign operations 41 3 754 (759)
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 1 - 1
Deferred taxation thereon - - -
1 - 1
Net (loss) gain on available-for-sale
financial assets (71) (319) 369
Release on disposal and impairment of
available-for-sale financial assets 20 126 (265)
Deferred taxation thereon 24 (82) -
(27) (275) 104
Actuarial loss recognised (323) - (175)
Deferred taxation thereon 117 - 47
(206) - (128)
Other comprehensive (expense) income
for the period net of tax (192) 3 479 (781)
Total comprehensive income (expense)
for the period net of tax 3 074 6 851 (265)
Allocated as follows:
Equity shareholders 2 932 6 783 (377)
Non-controlling interests 142 68 112
3 074 6 851 (265)
Year Year
ended ended
December December
2011 2010
SA Rand million Reviewed Audited
Profit for the period 11 624 1 018
Exchange differences on translation of foreign
operations 4 292 (1 766)
Share of equity accounted investments` other
comprehensive (expense) income (6) (1)
Net loss on cash flow hedges removed from
equity and reported in gold income - 279
Realised gain on hedges of capital items 3 3
Deferred taxation thereon (1) (99)
2 183
Net (loss) gain on available-for-sale financial
assets (590) 511
Release on disposal and impairment of
available-for-sale financial assets 162 (306)
Deferred taxation thereon (58) 13
(486) 218
Actuarial loss recognised (323) (175)
Deferred taxation thereon 117 47
(206) (128)
Other comprehensive (expense) income
for the period net of tax 3 596 (1 494)
Total comprehensive income (expense)
for the period net of tax 15 220 (476)
Allocated as follows:
Equity shareholders 14 878 (857)
Non-controlling interests 342 381
15 220 (476)
Rounding of figures may result in computational discrepancies.
Group statement of comprehensive income
Quarter Quarter Quarter
ended ended ended
December September December
2011 2011 2010
US Dollar million Unaudited Reviewed Unaudited
Profit for the period 402 465 72
Exchange differences on translation of
foreign operations 47 (389) 123
Share of equity accounted investments`
other comprehensive (expense) income - - -
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 (10) (42) 51
Release on disposal and impairment of
available-for-sale financial assets 3 17 (36)
Deferred taxation thereon 3 (11) -
(4) (36) 15
Actuarial loss recognised (39) - (24)
Deferred taxation thereon 14 - 6
(25) - (18)
Other comprehensive income (expense)
for the period net of tax 18 (425) 120
Total comprehensive income
for the period net of tax 420 40 192
Allocated as follows:
Equity shareholders 403 31 176
Non-controlling interests 17 9 16
420 40 192
Year Year
ended ended
December December
2011 2010
US Dollar million Reviewed Audited
Profit for the period 1 598 129
Exchange differences on translation of foreign
operations (365) 213
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 (81) 70
Release on disposal and impairment of
available-for-sale financial assets 22 (42)
Deferred taxation thereon (8) 2
(67) 30
Actuarial loss recognised (39) (24)
Deferred taxation thereon 14 6
(25) (18)
Other comprehensive income (expense)
for the period net of tax (458) 250
Total comprehensive income
for the period net of tax 1 140 379
Allocated as follows:
Equity shareholders 1 094 326
Non-controlling interests 46 53
1 140 379
Rounding of figures may result in computational discrepancies.
Group statement of financial position
As at As at As at
December September December
2011 2011 2010
SA Rand million Note Reviewed Reviewed Audited
ASSETS
Non-current assets
Tangible assets 52 462 48 991 40 600
Intangible assets 1 686 1 547 1 277
Investments in associates and
equity accounted joint ventures 5 647 5 613 4 087
Other investments 1 497 1 563 1 555
Inventories 3 295 3 304 2 268
Trade and other receivables 611 942 1 000
Deferred taxation 632 557 131
Cash restricted for use 186 179 214
Other non-current assets 73 76 59
66 089 62 772 51 191
Current assets
Inventories 8 552 7 778 5 848
Trade and other receivables 2 823 2 257 1 625
Derivatives - - 6
Current portion of other
non-current assets - 10 4
Cash restricted for use 278 304 69
Cash and cash equivalents 8 944 8 717 3 776
20 597 19 066 11 328
Non-current assets held for sale 172 12 110
20 769 19 078 11 438
TOTAL ASSETS 86 858 81 850 62 629
EQUITY AND LIABILITIES
Share capital and premium 11 46 122 45 903 45 678
Retained earnings and other
reserves (5 690) (8 243) (19 470)
Non-controlling interests 1 106 1 086 815
Total equity 41 538 38 746 27 023
Non-current liabilities
Borrowings 19 750 19 778 16 877
Environmental rehabilitation and
other provisions 6 288 4 845 3 873
Provision for pension and
post-retirement benefits 1 565 1 326 1 258
Trade, other payables and
deferred income 116 133 110
Derivatives 751 636 1 158
Deferred taxation 9 315 8 519 5 910
37 785 35 237 29 186
Current liabilities
Current portion of borrowings 256 382 886
Trade, other payables and
deferred income 6 034 5 769 4 630
Taxation 1 245 1 716 882
7 535 7 867 6 398
Non-current liabilities held for sale - - 22
7 535 7 867 6 420
Total liabilities 45 320 43 104 35 606
TOTAL EQUITY AND LIABILITIES 86 858 81 850 62 629
Rounding of figures may result in computational discrepancies.
Group statement of financial position
As at As at As at
December September December
2011 2011 2010
US Dollar million Note Reviewed Reviewed Audited
ASSETS
Non-current assets
Tangible assets 6 525 6 042 6 180
Intangible assets 210 191 194
Investments in associates and
equity accounted joint ventures 702 692 622
Other investments 186 193 237
Inventories 410 407 345
Trade and other receivables 76 116 152
Deferred taxation 79 69 20
Cash restricted for use 23 22 33
Other non-current assets 9 9 9
8 220 7 741 7 792
Current assets
Inventories 1 064 959 890
Trade and other receivables 350 279 247
Derivatives - - 1
Current portion of other
non-current assets - 1 1
Cash restricted for use 35 38 10
Cash and cash equivalents 1 112 1 075 575
2 561 2 352 1 724
Non-current assets held for sale 21 1 16
2 582 2 353 1 740
TOTAL ASSETS 10 802 10 094 9 532
EQUITY AND LIABILITIES
Share capital and premium 11 6 689 6 660 6 627
Retained earnings and other
reserves (1 660) (2 015) (2 638)
Non-controlling interests 137 133 124
Total equity 5 166 4 778 4 113
Non-current liabilities
Borrowings 2 456 2 439 2 569
Environmental rehabilitation and
other provisions 782 597 589
Provision for pension and
post-retirement benefits 195 164 191
Trade, other payables and
deferred income 14 16 17
Derivatives 93 78 176
Deferred taxation 1 158 1 051 900
4 698 4 345 4 442
Current liabilities
Current portion of borrowings 32 47 135
Trade, other payables and
deferred income 751 712 705
Taxation 155 212 134
938 971 974
Non-current liabilities held for sale - - 3
938 971 977
Total liabilities 5 636 5 316 5 419
TOTAL EQUITY AND LIABILITIES 10 802 10 094 9 532
Rounding of figures may result in computational discrepancies.
Group statement of cash flows
Quarter Quarter Quarter
ended ended ended
December September December
2011 2011 2010
SA Rand million Unaudited Reviewed Unaudited
Cash flows from operating activities
Receipts from customers 14 789 13 336 10 955
Payments to suppliers and employees (8 163) (6 753) (5 944)
Cash generated from operations 6 626 6 583 5 011
Dividends received from equity accounted
investments 270 333 218
Taxation refund 13 8 -
Taxation paid (1 724) (427) (153)
Cash utilised for hedge buy-back costs - - (7 312)
Net cash inflow (outflow) from operating
activities 5 185 6 497 (2 236)
Cash flows from investing activities
Capital expenditure (3 679) (2 739) (2 470)
Proceeds from disposal of tangible assets 61 26 12
Other investments acquired (99) (515) (152)
Proceeds from disposal of investments 96 266 578
Investment in associates and equity
accounted joint ventures (284) (222) (100)
Proceeds from disposal of associate - - -
Loans advanced to associates and equity
accounted joint ventures (95) (78) -
Proceeds from disposal of subsidiary - - -
Cash in subsidiary disposed - - -
Expenditure on intangible assets (80) (49) -
Decrease (increase) in cash restricted
for use 33 (65) 8
Interest received 79 79 59
Loans advanced - - (8)
Repayment of loans advanced 7 16 2
Net cash outflow from investing
activities (3 961) (3 281) (2 071)
Cash flows from financing activities
Proceeds from issue of share capital 48 16 31
Share issue expenses (2) - (31)
Proceeds from borrowings 20 681 1 880
Repayment of borrowings (74) (792) (2 400)
Finance costs paid (444) (105) (398)
Mandatory convertible bond transaction
costs - - (30)
Dividends paid (540) (368) (139)
Net cash (outflow) inflow from financing
activities (992) (568) (1 087)
Net increase (decrease) in cash and cash
equivalents 232 2 648 (5 394)
Translation (5) 413 (70)
Cash and cash equivalents at beginning
of period 8 717 5 656 9 313
Cash and cash equivalents at end of
period (1) 8 944 8 717 3 849
Cash generated from operations
Profit before taxation 5 262 4 837 1 394
Adjusted for:
Movement on non-hedge derivatives and
other commodity contracts 2 5 499
Amortisation of tangible assets 1 640 1 374 1 341
Finance costs and unwinding of
obligations 389 345 357
Environmental, rehabilitation and other
expenditure 1 159 (38) 470
Special items (1 121) 174 279
Amortisation of intangible assets 5 4 7
Deferred stripping (58) - 156
Fair value adjustment on option
component of convertible bonds 113 (88) 280
Fair value adjustment on mandatory
convertible bonds (84) (66) 222
Interest received (185) (75) (119)
Share of equity accounted investments`
profit (137) (175) (63)
Other non-cash movements 38 (38) 133
Movements in working capital (397) 324 55
6 626 6 583 5 011
Movements in working capital
Increase in inventories (813) (1 960) (101)
Decrease (increase) in trade and other
receivables 81 196 (200)
Increase (decrease) in trade and other
payables 335 2 088 356
(397) 324 55
Year Year
ended ended
December December
2011 2010
SA Rand million Reviewed Audited
Cash flows from operating activities
Receipts from customers 49 375 39 717
Payments to suppliers and employees (27 798) (26 682)
Cash generated from operations 21 577 13 035
Dividends received from equity accounted investments 899 939
Taxation refund 670 -
Taxation paid (3 559) (1 371)
Cash utilised for hedge buy-back costs - (18 333)
Net cash inflow (outflow) from operating activities 19 587 (5 730)
Cash flows from investing activities
Capital expenditure (10 238) (7 108)
Proceeds from disposal of tangible assets 144 500
Other investments acquired (1 038) (832)
Proceeds from disposal of investments 652 1 039
Investment in associates and equity accounted joint
ventures (844) (319)
Proceeds from disposal of associate - 4
Loans advanced to associates and equity accounted joint
ventures (189) (22)
Proceeds from disposal of subsidiary 62 -
Cash in subsidiary disposed (77) -
Expenditure on intangible assets (128) -
Decrease (increase) in cash restricted for use (124) 182
Interest received 280 232
Loans advanced - (41)
Repayment of loans advanced 27 3
Net cash outflow from investing activities (11 473) (6 362)
Cash flows from financing activities
Proceeds from issue of share capital 70 5 656
Share issue expenses (4) (144)
Proceeds from borrowings 741 16 666
Repayment of borrowings (1 967) (12 326)
Finance costs paid (1 057) (821)
Mandatory convertible bond transaction costs - (184)
Dividends paid (1 286) (846)
Net cash (outflow) inflow from financing activities (3 503) 8 001
Net increase (decrease) in cash and cash equivalents 4 611 (4 091)
Translation 484 (236)
Cash and cash equivalents at beginning of period 3 849 8 176
Cash and cash equivalents at end of period (1) 8 944 3 849
Cash generated from operations
Profit before taxation 16 961 3 036
Adjusted for:
Movement on non-hedge derivatives and other commodity
contracts 9 2 946
Amortisation of tangible assets 5 582 5 022
Finance costs and unwinding of obligations 1 417 1 203
Environmental, rehabilitation and other expenditure 1 358 535
Special items (808) 1 076
Amortisation of intangible assets 17 18
Deferred stripping 122 921
Fair value adjustment on option component of convertible
bonds (563) (39)
Fair value adjustment on mandatory convertible bonds (731) 382
Interest received (388) (311)
Share of equity accounted investments` profit (532) (467)
Other non-cash movements 138 250
Movements in working capital (1 005) (1 537)
21 577 13 035
Movements in working capital
Increase in inventories (3 714) (667)
Decrease (increase) in trade and other receivables (311) (781)
Increase (decrease) in trade and other payables 3 020 (89)
(1 005) (1 537)
(1) The cash and cash equivalents balance at 31 December 2010 includes cash and
cash equivalents included on the statement of financial position as part of non-
current assets held for sale of R73m.
Rounding of figures may result in computational discrepancies.
Group statement of cash flows
Quarter Quarter Quarter
ended ended ended
December September December
2011 2011 2010
US Dollar million Unaudited Reviewed Unaudited
Cash flows from operating activities
Receipts from customers 1 828 1 875 1 589
Payments to suppliers and employees (1 009) (988) (925)
Cash generated from operations 819 887 664
Dividends received from equity accounted
investments 34 34 39
Taxation refund 2 1 -
Taxation paid (211) (59) (24)
Cash utilised for hedge buy-back costs - - (1 061)
Net cash inflow (outflow) from operating
activities 644 863 (382)
Cash flows from investing activities
Capital expenditure (455) (382) (350)
Proceeds from disposal of tangible assets 7 4 2
Other investments acquired (12) (74) (23)
Proceeds from disposal of investments 12 37 80
Investment in associates and equity
accounted joint ventures (34) (31) (15)
Proceeds from disposal of associate - - -
Loans advanced to associates and equity
accounted joint ventures (12) (10) -
Proceeds from disposal of subsidiary - - -
Cash in subsidiary disposed - - -
Expenditure on intangible assets (10) (6) -
Decrease (increase) in cash restricted
for use 3 (9) 2
Interest received 10 11 8
Loans advanced - - (1)
Repayment of loans advanced 1 2 -
Net cash outflow from investing
activities (490) (458) (297)
Cash flows from financing activities
Proceeds from issue of share capital 6 2 4
Share issue expenses - - (4)
Proceeds from borrowings 3 101 276
Repayment of borrowings (9) (104) (324)
Finance costs paid (55) (14) (58)
Mandatory convertible bond transaction
costs - - (4)
Dividends paid (66) (50) (20)
Net cash (outflow) inflow from financing
activities (121) (65) (130)
Net increase (decrease) in cash and cash
equivalents 33 340 (809)
Translation 4 (104) 57
Cash and cash equivalents at beginning
of period 1 075 839 1 338
Cash and cash equivalents at end of
period (1) 1 112 1 075 586
Cash generated from operations
Profit before taxation 648 669 199
Adjusted for:
Movement on non-hedge derivatives and
other commodity contracts - 1 72
Amortisation of tangible assets 203 192 195
Finance costs and unwinding of
obligations 48 48 52
Environmental, rehabilitation and other
expenditure 142 (6) 69
Special items (137) 23 42
Amortisation of intangible assets 1 1 1
Deferred stripping (7) (1) 23
Fair value adjustment on option
component of convertible bonds 15 (11) 41
Fair value adjustment on mandatory
convertible bonds (9) (9) 33
Interest received (23) (10) (17)
Share of equity accounted investments`
profit (17) (24) (9)
Other non-cash movements 4 (4) 19
Movements in working capital (49) 18 (56)
819 887 664
Movements in working capital
Increase in inventories (112) (15) (85)
Decrease (increase) in trade and other
receivables 8 73 (46)
Increase (decrease) in trade and other
payables 55 (40) 75
(49) 18 (56)
Year Year
ended ended
December December
2011 2010
US Dollar million Reviewed Audited
Cash flows from operating activities
Receipts from customers 6 796 5 448
Payments to suppliers and employees (3 873) (3 734)
Cash generated from operations 2 923 1 714
Dividends received from equity accounted investments 111 143
Taxation refund 98 -
Taxation paid (477) (188)
Cash utilised for hedge buy-back costs - (2 611)
Net cash inflow (outflow) from operating activities 2 655 (942)
Cash flows from investing activities
Capital expenditure (1 393) (973)
Proceeds from disposal of tangible assets 19 69
Other investments acquired (147) (114)
Proceeds from disposal of investments 91 142
Investment in associates and equity accounted joint
ventures (115) (44)
Proceeds from disposal of associate - 1
Loans advanced to associates and equity accounted joint
ventures (25) (3)
Proceeds from disposal of subsidiary 9 -
Cash in subsidiary disposed (11) -
Expenditure on intangible assets (16) -
Decrease (increase) in cash restricted for use (19) 25
Interest received 39 32
Loans advanced - (6)
Repayment of loans advanced 4 -
Net cash outflow from investing activities (1 564) (871)
Cash flows from financing activities
Proceeds from issue of share capital 10 798
Share issue expenses (1) (20)
Proceeds from borrowings 109 2 316
Repayment of borrowings (268) (1 642)
Finance costs paid (144) (115)
Mandatory convertible bond transaction costs - (26)
Dividends paid (169) (117)
Net cash (outflow) inflow from financing activities (463) 1 194
Net increase (decrease) in cash and cash equivalents 628 (619)
Translation (102) 105
Cash and cash equivalents at beginning of period 586 1 100
Cash and cash equivalents at end of period (1) 1 112 586
Cash generated from operations
Profit before taxation 2 321 405
Adjusted for:
Movement on non-hedge derivatives and other commodity
contracts 1 408
Amortisation of tangible assets 768 690
Finance costs and unwinding of obligations 196 166
Environmental, rehabilitation and other expenditure 171 78
Special items (93) 152
Amortisation of intangible assets 2 2
Deferred stripping 19 125
Fair value adjustment on option component of convertible
bonds (84) 1
Fair value adjustment on mandatory convertible bonds (104) 55
Interest received (52) (43)
Share of equity accounted investments` profit (73) (63)
Other non-cash movements 21 37
Movements in working capital (170) (299)
2 923 1 714
Movements in working capital
Increase in inventories (236) (236)
Decrease (increase) in trade and other receivables - (142)
Increase (decrease) in trade and other payables 66 79
(170) (299)
(1) The cash and cash equivalents balance at 31 December 2010 includes cash and
cash equivalents included on the statement of financial position as part of non-
current assets held for sale of $11m.
Rounding of figures may result in computational discrepancies.
Group statement of changes in equity
Equity holders of the parent
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 637
Other comprehensive (expense) income (1) 183
Total comprehensive (expense)
income - (1) 637 183
Shares issued 5 988
Share issue expenses (144)
Share-based payment for share
awards
net of exercised 92
Dividends paid (492)
Dividends of subsidiaries
Transfers to other reserves 25 (25)
Translation (35) 157 1
Balance at 31 December 2010 45 678 1 275 (25 437) (15)
Balance at 31 December 2010 45 678 1 275 (25 437) (15)
Profit for the period 11 282
Other comprehensive (expense)
income (6) 2
Total comprehensive (expense)
income - (6) 11 282 2
Shares issued 448
Share issue expenses (4)
Share-based payment for share
awards
net of exercised 51
Dividends paid (996)
Dividends of subsidiaries
Translation 55 (263) (2)
Balance at 31 December 2011 46 122 1 375 (15 414) (15)
US Dollar million
Balance at 31 December 2009 5 805 161 (2 744) (23)
Profit for the period 76
Other comprehensive income
(expense) 25
Total comprehensive income
(expense) - - 76 25
Shares issued 842
Share issue expenses (20)
Share-based payment for share
awards
net of exercised 13
Dividends paid (67)
Dividends of subsidiaries
Transfers to other reserves 3 (3)
Translation 17 (15) (1)
Balance at 31 December 2010 6 627 194 (2 750) (2)
Balance at 31 December 2010 6 627 194 (2 750) (2)
Profit for the period 1 552
Other comprehensive expense (1)
Total comprehensive (expense)
income - (1) 1 552 -
Shares issued 63
Share issue expenses (1)
Share-based payment for share awards
net of exercised 9
Dividends paid (131)
Dividends of subsidiaries
Translation (31) 29
Balance at 31 December 2011 6 689 171 (1 300) (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 218 (128) (1 766)
Total comprehensive (expense) income 218 (128) (1 766)
Shares issued
Share issue expenses
Share-based payment for share awards
net of exercised
Dividends paid
Dividends of subsidiaries
Transfers to other reserves
Translation (64) 4
Balance at 31 December 2010 568 (409) 4 548
Balance at 31 December 2010 568 (409) 4 548
Profit for the period
Other comprehensive (expense) income (486) (206) 4 292
Total comprehensive (expense) income (486) (206) 4 292
Shares issued
Share issue expenses
Share-based payment for share awards
net of exercised
Dividends paid
Dividends of subsidiaries
Translation 65 (8)
Balance at 31 December 2011 147 (623) 8 840
US Dollar million
Balance at 31 December 2009 56 (38) (317)
Profit for the period
Other comprehensive income (expense) 30 (18) 213
Total comprehensive income (expense) 30 (18) 213
Shares issued
Share issue expenses
Share-based payment for share awards
net of exercised
Dividends paid
Dividends of subsidiaries
Transfers to other reserves
Translation (6)
Balance at 31 December 2010 86 (62) (104)
Balance at 31 December 2010 86 (62) (104)
Profit for the period
Other comprehensive expense (67) (25) (365)
Total comprehensive (expense) income (67) (25) (365)
Shares issued
Share issue expenses
Share-based payment for share awards
net of exercised
Dividends paid
Dividends of subsidiaries
Translation (1) 9
Balance at 31 December 2011 18 (78) (469)
Non-
controlling Total
SA Rand million Total interests equity
Balance at 31 December 2009 21 558 966 22 524
Profit for the period 637 381 1 018
Other comprehensive (expense) income (1 494) (1 494)
Total comprehensive (expense) income (857) 381 (476)
Shares issued 5 988 5 988
Share issue expenses (144) (144)
Share-based payment for share awards
net of exercised 92 92
Dividends paid (492) (492)
Dividends of subsidiaries (469) (469)
Transfers to other reserves - -
Translation 63 (63) -
Balance at 31 December 2010 26 208 815 27 023
Balance at 31 December 2010 26 208 815 27 023
Profit for the period 11 282 342 11 624
Other comprehensive (expense) income 3 596 3 596
Total comprehensive (expense) income 14 878 342 15 220
Shares issued 448 448
Share issue expenses (4) (4)
Share-based payment for share awards
net of exercised 51 51
Dividends paid (996) (996)
Dividends of subsidiaries - (204) (204)
Translation (153) 153 -
Balance at 31 December 2011 40 432 1 106 41 538
US Dollar million
Balance at 31 December 2009 2 900 130 3 030
Profit for the period 76 53 129
Other comprehensive income (expense) 250 250
Total comprehensive income (expense) 326 53 379
Shares issued 842 842
Share issue expenses (20) (20)
Share-based payment for share awards
net of exercised 13 13
Dividends paid (67) (67)
Dividends of subsidiaries - (64) (64)
Transfers to other reserves - -
Translation (5) 5 -
Balance at 31 December 2010 3 989 124 4 113
Balance at 31 December 2010 3 989 124 4 113
Profit for the period 1 552 46 1 598
Other comprehensive expense (458) (458)
Total comprehensive (expense) income 1 094 46 1 140
Shares issued 63 63
Share issue expenses (1) (1)
Share-based payment for share awards
net of exercised 9 9
Dividends paid (131) (131)
Dividends of subsidiaries - (27) (27)
Translation 6 (6) -
Balance at 31 December 2011 5 029 137 5 166
Rounding of figures may result in computational discrepancies.
Segmental reporting
for the quarter and year ended 31 December 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 Year
Dec Sep Dec Dec Dec
2011 2011 2010 2011 2010
Unaudited Reviewed Unaudited Reviewed Audited
SA Rand million
Gold income
South Africa 5 429 4 839 4 499 18 610 16 056
Continental
Africa 5 845 4 919 3 654 18 486 13 604
Australasia 837 658 988 2 797 3 391
Americas 3 167 3 195 2 073 10 816 8 202
15 278 13 610 11 214 50 709 41 253
Equity accounted
investments
included above (893) (760) (600) (2 860) (2 420)
14 385 12 850 10 614 47 849 38 833
Quarter ended Year
Dec Sep Dec Dec Dec
2011 2011 2010 2011 2010
Unaudited Reviewed Unaudited Reviewed Audited
US Dollar million
Gold income
South Africa 672 675 654 2 560 2 207
Continental
Africa 722 683 532 2 530 1 868
Australasia 103 93 143 385 466
Americas 392 448 301 1 487 1 124
1 889 1 899 1 630 6 962 5 665
Equity accounted
investments
included above (110) (106) (87) (392) (331)
1 779 1 793 1 543 6 570 5 334
Quarter ended Year
Dec Sep Dec Dec Dec
2011 2011 2010 2011 2010
Unaudited Reviewed Unaudited Reviewed Audited
SA Rand million
Gross profit (loss)
South Africa 2 586 2 092 (345) 7 934 3 180
Continental
Africa 1 661 2 346 4 412 6 797 4 219
Australasia (69) - (513) (103) (1 452)
Americas 1 502 1 795 (317) 5 407 2 664
Corporate and other 125 (23) 13 202 171
5 805 6 210 3 250 20 237 8 782
Equity accounted
investments
included above (305) (345) (180) (1 142) (918)
5 500 5 865 3 069 19 095 7 864
Quarter ended Year
Dec Sep Dec Dec Dec
2011 2011 2010 2011 2010
Unaudited Reviewed Unaudited Reviewed Audited
US Dollar million
Gross profit (loss)
South Africa 320 290 (50) 1 083 429
Continental
Africa 207 325 640 938 604
Australasia (9) - (75) (13) (206)
Americas 186 252 (46) 744 357
Corporate and other 16 (4) 2 28 23
720 863 471 2 780 1 207
Equity accounted
investments
included above (38) (48) (26) (157) (125)
682 815 445 2 623 1 082
Quarter ended Year
Dec Sep Dec Dec Dec
2011 2011 2010 2011 2010
Unaudited Unaudited Unaudited Unaudited Audited
SA Rand million
Adjusted gross
profit (loss) excluding
hedge buy-back
costs (1)
South Africa 2 586 2 092 1 652 7 934 4 580
Continental
Africa 1 661 2 347 971 6 796 3 314
Australasia (69) - 279 (103) 217
Americas 1 504 1 799 863 5 418 3 563
Corporate and
other 125 (23) 13 201 171
5 807 6 215 3 778 20 246 11 845
Equity accounted
investments
included above (305) (345) (180) (1 142) (918)
5 502 5 870 3 598 19 104 10 927
Quarter ended Year
Dec Sep Dec Dec Dec
2011 2011 2010 2011 2010
Unaudited Unaudited Unaudited Unaudited Audited
US Dollar million
Adjusted gross
profit (loss) excluding
hedge buy-back
costs (1)
South Africa 320 290 239 1 083 634
Continental
Africa 207 325 141 938 455
Australasia (9) - 41 (13) 33
Americas 186 253 125 745 487
Corporate and other 16 (4) 2 28 23
720 864 548 2 781 1 632
Equity accounted
investments
included above (38) (48) (26) (157) (125)
682 816 522 2 624 1 507
(1) Refer to note B "Non-GAAP disclosure" for definition.
Rounding of figures may result in computational discrepancies.
Segmental reporting (continued)
Quarter ended Year
Dec Sep Dec Dec Dec
2011 2011 2010 2011 2010
Unaudited Unaudited Unaudited Unaudited Audited
kg
Gold production
South Africa 12 365 12 243 14 801 50 489 55 528
Continental
Africa 13 023 12 769 11 623 48 819 46 390
Australasia 1 968 1 558 3 175 7 658 12 313
Americas 7 294 7 401 6 105 27 733 26 187
34 650 33 970 35 703 134 699 140 418
Quarter ended Year
Dec Sep Dec Dec Dec
2011 2011 2010 2011 2010
Unaudited Unaudited Unaudited Unaudited Audited
oz (000)
Gold production
South Africa 398 394 476 1 624 1 785
Continental
Africa 419 411 374 1 570 1 492
Australasia 63 50 102 246 396
Americas 234 238 196 891 842
1 114 1 092 1 148 4 331 4 515
Quarter ended Year
Dec Sep Dec Dec Dec
2011 2011 2010 2011 2010
Unaudited Unaudited Unaudited Unaudited Audited
SA Rand million
Capital
expenditure
South Africa 1 466 1 004 1 009 3 919 3 096
Continental
Africa 1 230 722 685 3 101 1 708
Australasia 326 227 71 759 290
Americas 1 194 895 782 3 348 2 270
Corporate and
other 35 74 25 132 49
4 251 2 922 2 572 11 259 7 413
Equity accounted
investments
included above (251) (143) (102) (655) (305)
4 000 2 780 2 470 10 604 7 108
Quarter ended Year
Dec Sep Dec Dec Dec
2011 2011 2010 2011 2010
Unaudited Unaudited Unaudited Unaudited Audited
US Dollar million
Capital
expenditure
South Africa 181 140 144 532 424
Continental
Africa 152 101 97 420 234
Australasia 40 32 10 102 40
Americas 147 125 111 456 311
Corporate and other 5 10 3 17 6
525 408 365 1 527 1 015
Equity accounted
investments
included above (31) (20) (15) (88) (42)
494 388 350 1 439 973
As at As at As at
Dec Sep Dec
2011 2011 2010
Reviewed Reviewed Audited
SA Rand million
Total assets
South Africa 17 272 16 489 16 226
Continental Africa 35 402 33 687 26 060
Australasia 5 922 4 717 3 644
Americas 20 106 19 287 13 855
Corporate and other 9 080 8 341 3 384
87 782 82 521 63 169
Equity accounted investments
included above (924) (671) (540)
86 858 81 850 62 629
As at As at As at
Dec Sep Dec
2011 2011 2010
Reviewed Reviewed Audited
US Dollar million
Total assets
South Africa 2 148 2 033 2 469
Continental Africa 4 403 4 154 3 966
Australasia 736 582 555
Americas 2 501 2 378 2 109
Corporate and other 1 129 1 029 515
10 917 10 176 9 614
Equity accounted investments
included above (115) (82) (82)
10 802 10 094 9 532
Rounding of figures may result in computational discrepancies.
Notes
for the quarter and year ended 31 December 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 and
revised International Financial Reporting Standards (IFRS) which are effective 1
January 2011, where applicable.
The financial statements of AngloGold Ashanti Limited have been prepared in
compliance with IAS34, the 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 year ended 31 December 2011.
2. Revenue
Quarter ended Year
Dec Sep Dec Dec Dec
2011 2011 2010 2011 2010
Unaudited Reviewed Unaudited Reviewed Audited
SA Rand million
Gold income 14,385 12,850 10,614 47,849 38,833
By-products
(note 3) 398 406 321 1,618 935
Royalties
received (note 6) 66 97 41 556 56
Interest received 185 75 119 388 311
15,034 13,428 11,095 50,411 40,135
Quarter ended Year
Dec Sep Dec Dec Dec
2011 2011 2010 2011 2010
Unaudited Reviewed Unaudited Reviewed Audited
US Dollar million
Gold income 1,779 1,793 1,543 6,570 5,334
By-products
(note 3) 49 57 47 224 129
Royalties
received (note 6) 8 13 6 79 8
Interest received 23 10 17 52 43
1,859 1,873 1,613 6,925 5,514
3. Cost of sales
Quarter ended Year
Dec Sep Dec Dec Dec
2011 2011 2010 2011 2010
Unaudited Reviewed Unaudited Reviewed Audited
SA Rand million
Cash operating
costs (6,378) (5,542) (5,120) (22,000) (20,084)
Insurance
reimbursement - - - - 123
By-products
revenue (note 2) 398 406 321 1,618 935
(5,980) (5,136) (4,799) (20,382) (19,026)
Royalties (410) (395) (313) (1,402) (1,030)
Other cash costs (53) (67) (54) (218) (182)
Total cash costs (6,443) (5,598) (5,166) (22,002) (20,238)
Retrenchment
costs (35) (26) (64) (108) (166)
Rehabilitation
and other
non-cash costs (1,281) (80) (529) (1,778) (756)
Production costs (7,759) (5,704) (5,759) (23,888) (21,160)
Amortisation of
tangible assets (1,640) (1,374) (1,341) (5,582) (5,022)
Amortisation of
intangible assets (5) (4) (7) (17) (18)
Total production
costs (9,404) (7,083) (7,107) (29,487) (26,200)
Inventory change 521 102 92 742 367
(8,883) (6,980) (7,016) (28,745) (25,833)
Quarter ended Year
Dec Sep Dec Dec Dec
2011 2011 2010 2011 2010
Unaudited Reviewed Unaudited Reviewed Audited
US Dollar million
Cash operating costs (788) (777) (745) (3,029) (2,756)
Insurance
reimbursement - - - - 16
By-products
revenue (note 2) 49 57 47 224 129
(739) (720) (698) (2,805) (2,611)
Royalties (51) (55) (45) (193) (142)
Other cash costs (6) (9) (8) (30) (25)
Total cash costs (796) (784) (751) (3,028) (2,778)
Retrenchment
costs (4) (4) (9) (15) (23)
Rehabilitation
and other
non-cash costs (157) (11) (78) (229) (109)
Production costs (957) (799) (838) (3,272) (2,910)
Amortisation of
tangible assets (203) (192) (195) (768) (690)
Amortisation of
intangible assets (1) (1) (1) (2) (2)
Total production
costs (1,161) (992) (1,034) (4,042) (3,602)
Inventory change 64 14 13 96 52
(1,097) (977) (1,021) (3,946) (3,550)
4. Loss on non-hedge derivatives and other commodity contracts
Quarter ended Year
Dec Sep Dec Dec Dec
2011 2011 2010 2011 2010
Unaudited Reviewed Unaudited Reviewed Audited
SA Rand million
Loss on realised
non-hedge
derivatives - - - - (2,073)
Loss on hedge
buy-back costs - - (7,316) - (18,954)
(Loss) gain on
unrealised non-hedge
derivatives (2) (5) 6,787 (9) 15,891
(2) (5) (529) (9) (5,136)
Quarter ended Year
Dec Sep Dec Dec Dec
2011 2011 2010 2011 2010
Unaudited Reviewed Unaudited Reviewed Audited
US Dollar million
Loss on realised
non-hedge derivatives - - - - (277)
Loss on hedge
buy-back costs - - (1,061) - (2,698)
(Loss) gain on
unrealised non-hedge
derivatives - (1) 985 (1) 2,273
- (1) (77) (1) (702)
Rounding of figures may result in computational discrepancies.
5. Other operating income (expenses)
Quarter ended Year
Dec Sep Dec Dec Dec
2011 2011 2010 2011 2010
Unaudited Reviewed Unaudited Reviewed Audited
SA Rand million
Pension and
medical defined
benefit
provisions 67 (53) 45 (38) (28)
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 (29) (31) (72) (149) (121)
38 (84) (27) (187) (149)
Quarter ended Year
Dec Sep Dec Dec Dec
2011 2011 2010 2011 2010
Unaudited Reviewed Unaudited Reviewed Audited
US Dollar million
Pension and
medical defined
benefit
provisions 8 (7) 7 (6) (3)
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) (11) (21) (17)
4 (11) (4) (27) (20)
6. Special items
Quarter ended Year
Dec Sep Dec Dec Dec
2011 2011 2010 2011 2010
Unaudited Reviewed Unaudited Reviewed Audited
SA Rand million
Net impairment
of tangible assets
(note 9) 1,094 (22) (399) 999 (634)
Impairment of
investments
(note 9) (20) (124) (16) (156) (16)
Reversal
(impairment) of
other receivables 21 (1) (11) 10 (67)
Net loss on
disposal and
derecognition
of land, mineral
rights, tangible
assets
and exploration
properties (note 9) (54) (21) (81) (68) (191)
Profit on
disposal of
investments
(note 9) - - 269 - 314
Black Economic
Empowerment
transaction
modification
costs for
Izingwe (Pty) Ltd - - - (44) -
Royalties
received (1)
(note 2) 66 97 41 556 56
Insurance claim
recovery on
capital
items (note 9) 26 - - 26 -
Insurance claim
recovery on loss
of business - - 31 - 134
Indirect tax
expenses and
legal claims 58 (26) (46) (35) (125)
Mandatory
convertible
bonds issue
discount,
underwriting and
professional fees - - 5 - (396)
Contractor
termination
costs at Geita
Gold Mining
Limited - - - - (8)
Recovery (loss)
on consignment
inventory - - - - 39
Profit on
disposal of
subsidiary ISS
International
Limited (note 9) - - - 14 -
1,191 (97) (208) 1,302 (894)
Quarter ended Year
Dec Sep Dec Dec Dec
2011 2011 2010 2011 2010
Unaudited Reviewed Unaudited Reviewed Audited
US Dollar million
Net impairment
of tangible assets
(note 9) 134 (3) (59) 120 (91)
Impairment of
investments
(note 9) (3) (16) (2) (21) (2)
Reversal
(impairment) of
other receivables 2 - (2) 1 (9)
Net loss on
disposal and
derecognition
of land, mineral
rights, tangible
assets and exploration
properties (note 9) (5) (4) (11) (8) (25)
Profit on
disposal of
investments
(note 9) - - 37 - 43
Black Economic
Empowerment
transaction
modification
costs for
Izingwe (Pty) Ltd - - - (7) -
Royalties
received (1)
(note 2) 8 13 6 79 8
Insurance claim
recovery on
capital
items (note 9) 3 - - 3 -
Insurance claim
recovery on loss
of business - - 4 - 19
Indirect tax
expenses and
legal claims 7 (3) (6) (6) (17)
Mandatory
convertible
bonds issue
discount,
underwriting and
professional fees - - 1 - (56)
Contractor
termination
costs at Geita
Gold Mining
Limited - - - - (1)
Recovery (loss)
on consignment
inventory - - - - 5
Profit on
disposal of
subsidiary ISS
International
Limited (note 9) - - - 2 -
146 (13) (31) 163 (126)
(1) The December year 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 Year
Dec Sep Dec Dec Dec
2011 2011 2010 2011 2010
Unaudited Reviewed Unaudited Reviewed Audited
SA Rand million
Finance costs (278) (246) (259) (1,021) (834)
Unwinding of
obligations,
accretion of
convertible (111) (99) (98) (396) (369)
bonds and other
discounts
(389) (345) (357) (1,417) (1,203)
Quarter ended Year
Dec Sep Dec Dec Dec
2011 2011 2010 2011 2010
Unaudited Reviewed Unaudited Reviewed Audited
US Dollar million
Finance costs (34) (34) (38) (141) (115)
Unwinding of
obligations,
accretion of
convertible
bonds and other
discounts (14) (14) (14) (55) (51)
(48) (48) (52) (196) (166)
8. Taxation
Quarter ended Year
Dec Sep Dec Dec Dec
2011 2011 2010 2011 2010
Unaudited Reviewed Unaudited Reviewed Audited
SA Rand million
South African
taxation
Mining tax (573) (318) - (890) -
Non-mining tax (60) 9 (53) (88) (112)
Over (under)
prior year
provision 13 20 34 (21) 628
Deferred taxation
Temporary
differences (340) (373) 80 (1,586) 1,377
Unrealised
non-hedge
derivatives and
other commodity
contracts - - (461) - (2,353)
Change in
estimated
deferred tax rate (77) - 39 (77) 39
(1,036) (662) (361) (2,662) (421)
Foreign taxation
Normal taxation (517) (769) (617) (2,004) (1,628)
Over (under)
prior year
provision 28 (55) 46 (25) 17
Deferred taxation
Temporary
differences (471) 22 54 (646) 37
Unrealised
non-hedge
derivatives and
other commodity
contracts - - - - (23)
(959) (802) (517) (2,675) (1,597)
(1,996) (1,465) (878) (5,337) (2,018)
Quarter ended Year
Dec Sep Dec Dec Dec
2011 2011 2010 2011 2010
Unaudited Reviewed Unaudited Reviewed Audited
US Dollar million
South African
taxation
Mining tax (71) (42) - (113) -
Non-mining tax (7) 1 (8) (12) (13)
Over (under)
prior year
provision 2 3 5 (4) 89
Deferred taxation
Temporary
differences (42) (53) 12 (222) 195
Unrealised
non-hedge
derivatives and
other commodity
contracts - - (67) - (334)
Change in
estimated
deferred tax rate (9) - 6 (9) 6
(128) (92) (52) (360) (57)
Foreign taxation
Normal taxation (64) (107) (90) (275) (226)
Over (under)
prior year
provision 4 (7) 7 (3) 3
Deferred taxation
Temporary
differences (57) 1 8 (85) 7
Unrealised
non-hedge
derivatives and
other commodity
contracts - - - - (3)
(118) (113) (75) (363) (219)
(246) (204) (127) (723) (276)
Rounding of figures may result in computational discrepancies.
9. Headline earnings
Quarter ended Year
Dec Sep Dec Dec Dec
2011 2011 2010 2011 2010
Unaudited Reviewed Unaudited Reviewed Audited
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 3,124 3,304 404 11,282 637
Net impairment
of tangible
assets (note 6) (1,094) 22 399 (999) 634
Net loss on
disposal and
derecognition
of land, mineral
rights, tangible
assets
and exploration
properties (note 6) 54 21 81 68 191
Impairment of
investments
(note 6) 20 124 16 156 16
Profit on
disposal of
subsidiary ISS
International
Limited (note 6) - - - (14) -
Insurance claim
recovery on
capital
items (note 6) (26) - - (26) -
Profit on
disposal of
investments
(note 6) - - (269) - (314)
Net Impairment
(reversal) of
investment
in associates
and joint
ventures (49) 2 78 (33) 31
Special items of
associates - - (7) - (7)
Taxation on
items above -
current
portion 1 - - 8 4
Taxation on
items above -
deferred
portion 313 (15) (143) 260 (230)
2,344 3,458 561 10,702 962
Headline
earnings per
ordinary share
(cents) (1) 607 895 146 2,773 259
Diluted headline
earnings per
ordinary
share (cents) (2) 576 825 146 2,395 259
Quarter ended Year
Dec Sep Dec Dec Dec
2011 2011 2010 2011 2010
Unaudited Reviewed Unaudited Reviewed Audited
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 385 456 56 1,552 76
Net impairment
of tangible
assets (note 6) (134) 3 59 (120) 91
Net loss on
disposal and
derecognition
of land, mineral
rights, tangible
assets
and exploration
properties (note 6) 5 4 11 8 25
Impairment of
investments
(note 6) 3 16 2 21 2
Profit on
disposal of
subsidiary ISS
International
Limited (note 6) - - - (2) -
Insurance claim
recovery on
capital
items (note 6) (3) - - (3) -
Profit on
disposal of
investments
(note 6) - - (37) - (43)
Net Impairment
(reversal) of
investment
in associates
and joint
ventures (6) - 11 (4) 5
Special items of
associates - - (1) - (1)
Taxation on
items above -
current
portion - - - 1 -
Taxation on
items above -
deferred
portion 38 (2) (21) 31 (33)
289 476 79 1,484 122
Headline
earnings per
ordinary share
(cents) (1) 75 123 21 384 33
Diluted headline
earnings per
ordinary
share (cents) (2) 71 114 21 330 33
(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
Dec Sep Dec
2011 2011 2010
Unaudited 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 382,242,343 381,850,470 381,204,080
E ordinary shares in issue 2,582,962 3,421,848 2,806,126
Total ordinary shares: 384,825,305 385,272,318 384,010,206
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 382,059,365 381,644,151 381,103,478
E ordinary shares 2,937,664 3,431,215 2,818,699
Fully vested options 1,121,745 1,305,486 797,875
Weighted average number of shares 386,118,774 386,380,852 384,720,052
Dilutive potential of share options 1,517,152 1,290,253 1,493,052
Dilutive potential of convertible
bonds (1) 18,140,000 33,524,615 -
Diluted number of ordinary shares 405,775,926 421,195,720 386,213,104
Year
Dec Dec
2011 2010
Reviewed Audited
Authorised number of shares:
Ordinary shares of 25 SA cents each 600,000,000 600,000,000
E ordinary shares of 25 SA cents each 4,280,000 4,280,000
A redeemable preference shares of 50 SA cents each 2,000,000 2,000,000
B redeemable preference shares of 1 SA cent each 5,000,000 5,000,000
Issued and fully paid number of shares:
Ordinary shares in issue 382,242,343 381,204,080
E ordinary shares in issue 2,582,962 2,806,126
Total ordinary shares: 384,825,305 384,010,206
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 381,621,687 367,664,700
E ordinary shares 2,950,804 3,182,662
Fully vested options 1,389,122 1,023,459
Weighted average number of shares 385,961,613 371,870,821
Dilutive potential of share options 1,572,015 1,569,606
Dilutive potential of convertible bonds (1) 33,524,615 -
Diluted number of ordinary shares 421,058,243 373,440,427
(1) The dilutive effect of the convertible bonds are not the same for the
quarter and the year ended December 2011 as the effect of the 3.5% convertible
bond is anti-dilutive for the quarter ended December 2011.
11. Share capital and premium
As at
Dec Sep Dec
2011 2011 2010
Reviewed Reviewed Audited
SA Rand million
Balance at beginning of period 46,343 46,343 40,662
Ordinary shares issued 408 234 5,771
E ordinary shares cancelled (63) (15) (90)
Sub-total 46,688 46,562 46,343
Redeemable preference shares held within the
group (313) (313) (313)
Ordinary shares held within the group (103) (148) (139)
E ordinary shares held within the group (150) (198) (213)
Balance at end of period 46,122 45,903 45,678
As at
Dec Sep Dec
2011 2011 2010
Reviewed Reviewed Audited
US Dollar million
Balance at beginning of period 6,734 6,734 5,935
Ordinary shares issued 57 33 812
E ordinary shares cancelled (9) (2) (13)
Sub-total 6,782 6,765 6,734
Redeemable preference shares held within the
group (53) (53) (53)
Ordinary shares held within the group (17) (22) (22)
E ordinary shares held within the group (23) (30) (32)
Balance at end of period 6,689 6,660 6,627
Rounding of figures may result in computational discrepancies.
12. Exchange rates
Dec Sep Dec
2011 2011 2010
Unaudited Unaudited Unaudited
ZAR/USD average for the year to date 7.26 6.97 7.30
ZAR/USD average for the quarter 8.09 7.14 6.88
ZAR/USD closing 8.04 8.11 6.57
ZAR/AUD average for the year to date 7.47 7.24 6.71
ZAR/AUD average for the quarter 8.19 7.50 6.80
ZAR/AUD closing 8.27 7.81 6.70
BRL/USD average for the year to date 1.68 1.63 1.76
BRL/USD average for the quarter 1.80 1.64 1.70
BRL/USD closing 1.87 1.89 1.67
ARS/USD average for the year to date 4.13 4.08 3.91
ARS/USD average for the quarter 4.25 4.16 3.96
ARS/USD closing 4.30 4.20 3.97
13. Capital commitments
Dec Sep Dec
2011 2011 2010
Reviewed Reviewed Audited
SA Rand million
Orders placed and outstanding on capital
contracts at the prevailing rate of
exchange (1) 1,626 2,317 1,156
Dec Sep Dec
2011 2011 2010
Reviewed Reviewed Audited
US Dollar million
Orders placed and outstanding on capital
contracts at the prevailing rate of
exchange (1) 202 286 176
(1) Includes capital commitments relating to equity accounted joint ventures.
Liquidity and capital resources
To service the above capital commitments and other operational requirements, the
group is dependent on existing cash resources, cash generated from operations
and borrowing facilities.
Cash generated from operations is subject to operational, market and other
risks. Distributions from operations may be subject to foreign investment,
exchange control laws and regulations and the quantity of foreign exchange
available in offshore countries. In addition, distributions from joint ventures
are subject to the relevant board approval.
The credit facilities and other finance arrangements contain financial covenants
and other similar undertakings. To the extent that external borrowings are
required, the group`s covenant performance indicates that existing financing
facilities will be available to meet the above commitments. To the extent that
any of the financing facilities mature in the near future, the group believes
that sufficient measures are in place to ensure that these facilities can be
refinanced.
14. Contingencies
AngloGold Ashanti`s material contingent liabilities and assets at 31 December
2011 are detailed below:
Contingencies and guarantees
As at As at
Dec Dec Dec Dec
2011 2010 2011 2010
Reviewed Audited Reviewed Audited
SA Rand million US Dollar million
Contingent liabilities
Groundwater pollution (1) - - - -
Deep groundwater pollution -
South Africa (2) - - - -
Sales tax on gold deliveries -
Brazil (3) 708 587 88 89
Other tax disputes - Brazil (4) 304 219 38 34
Indirect taxes - Ghana (5) 97 70 12 11
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 12 15
1,209 976 150 149
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 improvements 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 Sito Mineracao S.A.
manages the operation and its attributable share of the first assessment is
approximately $54m, R438m (December 2010: $55m, R363m). The company`s
attributable share of the second assessment is approximately $34m, R270m
(December 2010: $34m, R224m). 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, R74m (December 2010: $10m, R64m).
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 $29m, R230m (December 2010: $24m, R155m).
(5) Indirect taxes - AngloGold Ashanti (Ghana) Limited received a tax assessment
for $12m, R97m (December 2010: $11m, 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, 1973 (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 Appeal in 2010. In both
instances judgement was awarded in favour of AngloGold Ashanti Limited on the
basis that an employer is indemnified against such a claim for damages by virtue
of the provisions of section 35 of the Compensation for Occupational Injuries
and Diseases Act, 1993 (COIDA). 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. The Constitutional Court held that
section 35 of COIDA does not indemnify the employer against such claims.
Mr Mankayi passed away subsequent to the hearing in the Supreme Court of Appeal.
Following the Constitutional Court 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 will 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 of this possible
obligation.
(7) Royalty - As a result of the sale of the interest in the Boddington Gold
Mine joint venture during 2009, the group is entitled to receive a royalty on
any gold recovered or produced by the Boddington Gold Mine, where the gold price
is in excess of Boddington Gold Mine`s cash cost plus $600/oz. The royalty
commenced on 1 July 2010 and is capped at a total amount of $100m, R781m, of
which $34m, R250m (December 2010: $4m, R30m) have been received to date.
Royalties of $8m, R62m (December 2010: $2m, R17m) were received during the
quarter.
(8) Royalty - As a result of the sale of the interest in the Tau Lekoa Gold Mine
during 2010, the group is entitled to receive a royalty on the production of a
total of 1.5Moz 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 1.5Moz 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 on 219,005oz
produced have been received to date. Royalties of $1m, R11m (December 2010: $3m,
R21m) 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 (December 2010: $15m,
R100m). The suretyship agreements have a termination notice period of 90 days.
15. Borrowings
AngloGold Ashanti`s borrowings are interest bearing.
16. Announcements
On 16 November 2011, shareholders, in general meeting, authorised the directors
to provide financial assistance to related or inter-related companies or
corporations in terms of sections 44 and 45 of the South African Companies Act,
71 of 2008 (as amended).
With effect from 1 January 2012, Mr Rodney John Ruston was appointed to the
board of directors of AngloGold Ashanti Limited. This follows an announcement
made on 9 December 2011.
AngloGold Ashanti delisted from the following stock exchanges:
- Euronext Paris with effect from 23 December 2011 (and from Euroclear France on
30 December 2011); and
- Euronext Brussels with effect from 29 December 2011.
17. Subsequent events
On 8 February 2012 the transaction to dispose of Amikan Holdings Limited,
Imitzoloto Holdings Limited, Yeniseiskaya Holdings Limited, AngloGold Ashanti-
Polymetal Strategic Alliance Management Company Holdings Limited and AS APK
Holdings Limited to Polyholding Limited was completed. The consideration
received for the disposal was $20m. These assets were classified as held for
sale at 31 December 2011.
18. Dividend
Interim Dividend No. 111 of 90 South African cents or 6.83238 UK pence or 16.659
cedis per ordinary share was paid to registered shareholders on 9 December 2011,
while a dividend of 2.1762 Australian cents per CHESS Depositary Interest (CDI)
was paid on the same day. On 12 December 2011, holders of Ghanaian Depositary
Shares (GhDS) were paid 0.16659 cedis per GhDS. Each CDI represents one-fifth of
an ordinary share, and 100 GhDSs represents one ordinary share. A dividend of
10.8747 US cents per American Depositary Share (ADS) was paid to holders of
American Depositary Receipts (ADRs) on 19 December 2011. Each ADS represents one
ordinary share.
Interim Dividend No. E11 of 45 South African cents was paid to holders of E
ordinary shares on 9 December 2011, being those employees participating in the
Bokamoso ESOP and Izingwe Holdings (Proprietary) Limited.
The directors declared Final Dividend No. 112 of 200 South African cents per
ordinary share for the quarter and year ended 31 December 2011. In compliance
with the requirements of Strate, given the company`s primary listing on the JSE,
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.
2012
Currency conversion date for UK pounds, Australian dollars
and Ghanaian cedis Thursday, 1 March
Last date to trade ordinary shares cum dividend Friday, 2 March
Last date to register transfers of certificated securities
cum dividend Friday, 2 March
Ordinary shares trade ex-dividend Monday, 5 March
Record date Friday, 9 March
Payment date Friday, 16 March
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, 5 March 2012 and
Friday, 9 March 2012, 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.
2012
Ex dividend on New York Stock Exchange Wednesday, 7 March
Record date Friday, 9 March
Approximate date for currency conversion Friday, 16 March
Approximate payment date of dividend Monday, 26 March
Assuming an exchange rate of R7.7193/$, the dividend
payable per ADS is equivalent to 26 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.
2012
Last date to trade and to register GhDSs cum dividend Friday, 2 March
GhDSs trade ex-dividend Monday, 5 March
Record date Friday, 9 March
Approximate payment date of dividend Monday, 19 March
Assuming an exchange rate of R1/Cents (USD)0.22283, the dividend payable per
share is equivalent to 0.4457 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. E12 of 100 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, 16 March 2012.
By order of the Board
T T MBOWENI M CUTIFANI
Chairman Chief Executive Officer
14 February 2012
Shareholders` notice board
Shareholders` diary:
Financial year-end 31 December
Annual financial statements posting on or about 31 March 2012
Annual general meeting 11:00 SA time 10 May 2012
Quarterly reports Released on or about
- Quarter ended 31 March 2012 10 May 2012
- Quarter ended 30 June 2012 7 August 2012
- Quarter ended 30 September 2012 8 November 2012
- Quarter ended 31 December 2012 *14 February 2013
* Approximate dates.
Dividends:
Last date to trade
Dividend Number Declared ordinary shares Payment date to
cum dividend shareholders
2011 Final - number 112 14 February 2012 2 March 2012 9 March 2012
2012 Q1 Interim
- number 113* *8 May 2012 *25 May 2012 *1 June 2012
2012 Q2 Interim
- number 114* *3 August 2012 *24 August 2012 *31 August 2012
2012 Q3 Interim
- number 115* *6 November 2012 *23 November 2012 *30 November 2012
Dividend Number Declared Payment date to
ADS holders
2011 Final - number 112 14 February 2012 26 March 2012
2012 Q1 Interim - number 113* *8 May 2012 *18 June 2012
2012 Q2 Interim - number 114* *3 August 2012 *17 September 2012
2012 Q3 Interim - number 115* *6 November 2012 *17 December 2012
* Proposed, subject to board approval.
Dividend policy: Dividends are proposed, and approved by the board of directors
of AngloGold Ashanti, based on the financial results for the quarter. Dividends
are recognised when declared by the board of directors of AngloGold Ashanti.
AngloGold Ashanti expects to continue to pay dividends, although there can be no
assurance that dividends will be paid in the future or as to the particular
amounts that will be paid from year to year. The payments of future dividends
will depend upon the Board`s ongoing assessment of AngloGold Ashanti`s earnings,
after providing for long term growth and cash/debt resources, the amount of
reserves available for dividend using going concern assessment and restrictions
placed by the conditions of the convertible bonds and other debt facilities and
other factors.
Withholding tax: On 1 April 2012, a 10% withholding tax on dividends and other
distributions payable to shareholders will come into effect. This withholding
tax, which was announced by the South African Government on 21 February 2007,
replaces the Secondary Tax on Companies. Although this may reduce the tax
payable by the South African operations of the group, thereby increasing
distributable earnings, the withholding tax will generally reduce the amount of
dividends or other distributions received by AngloGold Ashanti shareholders.
Annual general meeting: Shareholders on the South African register who have
dematerialised their shares in the company (other than those shareholders whose
shareholding is recorded in their own names in the sub-register maintained by
their CSDP) and who wish to attend the annual general meeting to be held on 10
May 2012 in person, will need to request their CSDP or broker to provide them
with the necessary authority in terms of the custody agreement entered into
between them and the CSDP or broker.
Voting rights: The South African Companies Act 71 of 2008 (as amended) provides
that if voting is by a show of hands, any person present and entitled to
exercise voting rights has one vote, irrespective of the number of voting rights
that person would otherwise be entitled to. If voting is taken by way of poll,
any shareholder who is present at the meeting, whether in person or by duly
appointed proxy, shall have one vote for every share held. There are no
limitations on the right of non-South African shareholders to hold or exercise
voting rights attaching to any shares of the company. CDI holders are not
entitled to vote in person at meetings, but may vote by way of proxy. Options
granted in terms of the share incentive scheme do not carry rights to vote.
Change of details: Shareholders are reminded that the onus is on them to keep
the company, through its nominated share registrars, apprised of any change in
their postal address and personal particulars. Similarly, where shareholders
received dividend payments electronically (EFT), they should ensure that the
banking details which the share registrars and/or CSDPs have on file are
correct.
Annual reports: Should you wish to receive a printed copy of our 2011 integrated
report or any other report from our 2011 suite of reports, please request same
from the contact persons listed at the end of this report or on the company`s
website.
Administrative information
ANGLOGOLD ASHANTI LIMITED
Registration No. 1944/017354/06
Incorporated in the Republic of South Africa
Share codes:
ISIN: ZAE000043485
JSE: ANG
LSE: AGD
NYSE: AU
ASX: AGG
GhSE (Shares): AGA
GhSE (GhDS): AAD
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
R J Ruston
(effective 1 January 2012)
* British # American
Australian South African
+ Ghanaian Indian
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: 15/02/2012 09:15:07 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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