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Anglogold Ashanti Limited - Report To Shareholders For The Quarter Ended 31
Release Date: 29/04/2004 07:52:43 Code(s): ANG
Anglogold Ashanti Limited - Report to shareholders for the quarter ended 31
March 2004
Anglogold Ashanti Limited
(formerly: AngloGold Limited)
(Registration No. 1944/017354/06)
Incorporated in the Republic of South Africa
ISIN: ZAE000043485
Share codes:
JSE: ANG
LSE: AGD
NYSE: AU
ASX: AGG
GSE: AGA
Euronext Paris: VA
Euronext Brussels: ANG BB
JSE Sponsor: UBS
Report to shareholders for the quarter ended 31 March 2004
On Friday, 23 April 2004, the High Court of Ghana confirmed the scheme of
arrangement, in terms of which AngloGold will acquire the entire issued share
capital of Ashanti Goldfields Company Limited. The court order approving the
scheme was lodged with the Registrar of Companies in Ghana on Monday, 26 April
2004, thereby giving effect to the merger of the two companies and the name
change to AngloGold Ashanti Limited. This report does not cover the results of
the merged company. An update on the merger and a summary of the Ashanti results
for the March quarter are however provided at the end of this report.
Group results for the quarter ...
* Gold production decreased by 11% to 1.235Moz due to the normal slow production
start to the first quarter in South Africa and marked decreases in production at
Geita, Morila and Cerro Vanguardia
* Total cash costs 1 were up 10% to $259/oz due in part to lower production
* Adjusted operating profit 2 was 4% lower at $132m despite a 3% increase in
received gold price 3 of $405/oz
* Adjusted headline earnings 4 down 20% or $15m to $60m due to adjusted
operating profit2 and abnormal items included in previous quarter
* Hedge book reduced by 430,000oz (13.2t)
* AngloGold Ashanti merger effective on 26 April - combined group results to be
reported in the next quarter
SA Rand / Metric
Quarter Quarter
ended ended
March December
2004 2003
Unaudited Unaudited
Operating review
Gold
Produced - kg / oz (000) 38,416 43,210
Price received3 - R/kg / $/oz 87,837 84,705
Total cash costs 1 - R/kg / $/oz 56,297 50,988
Total production costs 1 - R/kg / $/oz 69,068 63,477
Financial review
716 1,060
Operating profit - Rm / $m
Adjusted operating profit 2 - Rm / $m 884 926
Net profit - Rm / $m 248 611
Headline earnings - Rm / $m 286 585
Adjusted headline earnings4 - Rm / $m 400 506
Capital expenditure1 - Rm / $m 567 1,181
Earnings per ordinary share - cents/share
Basic 111 274
Diluted 111 273
Headline 128 263
Adjusted headline4 179 227
Dividends - cents/share
Quarter Year
ended ended
March December
2003 2003
Unaudited Audited
Operating review
Gold
Produced - kg / oz (000) 43,605 174,668
Price received3 - R/kg / $/oz 91,962 87,826
Total cash costs 1 - R/kg / $/oz 52,741 52,336
Total production costs 1 - R/kg / $/oz 64,535 63,905
Financial review
Operating profit - Rm / $m 1,208 4,667
Adjusted operating profit 2 - Rm / $m 1,216 4,229
Net profit - Rm / $m 547 2,331
Headline earnings - Rm / $m 605 2,379
Adjusted headline earnings4 - Rm / $m 614 2,133
Capital expenditure1 - Rm / $m 635 3,286
Earnings per ordinary share - cents/share
Basic 246 1,046
Diluted 246 1,042
Headline 272 1,068
Adjusted headline4 276 957
Dividends - cents/share 710
US Dollar / Imperial
Quarter Quarter
ended ended
March December
2004 2003
Unaudited Unaudited
Operating review
Gold
Produced - kg / oz (000) 1,235 1,389
Price received 3 - R/kg / $/oz 405 392
Total cash costs1 - R/kg / $/oz 259 236
Total production costs1 - R/kg / $/oz 318 293
Financial review
Operating profit - Rm / $m 108 159
Adjusted operating profit2 - Rm / $m 132 137
Net profit - Rm / $m 38 93
Headline earnings - Rm / $m 44 89
Adjusted headline earnings4 - Rm / $m 60 75
Capital expenditure 1 - Rm / $m 84 166
Earnings per ordinary share - cents/share
Basic 17 42
Diluted 17 42
Headline 20 40
Adjusted headline4 27 34
Dividends - cents/share
Quarter Year
ended ended
March December
2003 2003
Unaudited Audited
Operating review
Gold
Produced - kg / oz (000) 1,402 5,616
Price received 3 - R/kg / $/oz 344 363
Total cash costs1 - R/kg / $/oz 197 217
Total production costs1 - R/kg / $/oz 241 265
Financial review
Operating profit - Rm / $m 145 622
Adjusted operating profit2 - Rm / $m 146 559
Net profit - Rm / $m 66 312
Headline earnings - Rm / $m 73 318
Adjusted headline earnings4 - Rm / $m 74 282
Capital expenditure 1 - Rm / $m 76 435
Earnings per ordinary share - cents/share
Basic 30 140
Diluted 30 139
Headline 33 143
Adjusted headline4 33 127
Dividends - cents/share 101
Note:
1 2003 restated to reflect the change in accounting treatment of ore reserve
development expenditure.
2 Operating profit excluding unrealised non-hedge derivatives.
3 Price received includes realised non-hedge derivatives.
4 Headline earnings before unrealised non-hedge derivatives and fair value
gains (losses) on interest rate swaps.
$ represents US dollar, unless otherwise stated.
Operations at a glance
for the quarter ended 31 March 2004
Price received1 Production Total
cash
% Var- oz % Var- costs2
$/oz iance5 (000) iance5 $/oz
Great Noligwa 423 2 189 (13) 235
TauTona 424 4 146 (11) 222
Kopanang 422 2 121 (2) 275
Sunrise Dam 480 13 87 (6) 274
Geita 6 347 2 93 (21) 190
Mponeng 421 4 104 (13) 314
Cripple Creek
& Victor J.V. 302 (8) 72 (5) 208
Morro Velho 350 3 52 (15) 139
Sadiola 6 408 3 45 (10) 216
Morila 6 374 2 43 (10) 158
Cerro Vanguardia 367 2 35 (40) 184
Serra Grande 6 343 1 23 (1) 130
Tau Lekoa 424 3 67 (16) 367
Yatela 6 405 3 20 18 274
Ergo 422 7 62 22 372
Navachab 406 3 15 (6) 302
Savuka 423 4 35 (17) 451
Other 26 (19)
AngloGold Group 405 3 1,235 (11) 259
Total Cash operating Adjusted operating
cash profit3 profit4
costs2
% Var- % Var- % Var-
iance5 $m iance5 $m iance5
Great Noligwa 12 34 (8) 31 (9)
TauTona 19 30 (3) 23 (18)
Kopanang 7 18 38 15 36
Sunrise Dam 19 17 (11) 11 (8)
Geita 6 40 14 (39) 10 (47)
Mponeng 10 12 (8) 6 (25)
Cripple Creek
& Victor J.V. 2 12 20 1 -
Morro Velho (3) 11 (8) 8 (11)
Sadiola 6 (3) 9 13 6 20
Morila 6 (13) 9 - 5 25
Cerro Vanguardia 33 8 (43) 3 (57)
Serra Grande 6 (1) 6 - 5 -
Tau Lekoa 18 4 (33) - 100
Yatela 6 (15) 2 100 1 150
Ergo 2 1 - 1 -
Navachab (13) 1 - 1 -
Savuka (11) (3) 67 (4) 56
Other 13 18 9 80
AngloGold Group 10 198 (3) 132 (4)
1 Price received includes realised non-hedge derivatives.
2 2003 restated to reflect the change in accounting treatment of ore reserve
development expenditure.
3 Adjusted operating profit plus amortisation of mining assets.
4 Operating profit excluding unrealised non-hedge derivatives.
5 Variance March 2004 quarter on December 2003 quarter - Increase (Decrease).
6 Attributable
Review of the gold market
The first quarter of 2004 saw the gold market sustain the price rises of the
last three years, and the spot price reach its highest point in almost 16 years
at $430.50/oz.
The average spot price for the period was $408/oz, 4% higher than the average
for the previous quarter. The gold price maintained its strength in spite of the
US dollar strengthening during the quarter from its record low of $1.2930/euro
to a high of $1.2050/euro. In the 12 quarters since the beginning of 2001, the
US dollar spot price of gold has risen every quarter except one (the second
quarter of 2003), and the upward trend in the price remained intact at the end
of the quarter. The gold price closed the quarter at $425/oz or $9/oz up on the
close of the previous quarter.
Since the end of the quarter, however, encouraging US economic data, a stronger
US dollar, and a correction in the record long gold position on the New York
Comex saw the gold price fall sharply, and the metal now trades in a range
between $390/oz and $400/oz.
GOLD PRICE DRIVERS
The quarter saw the gold price disconnect to a large degree from moves in the US
dollar, and strengthened in the face of a stronger dollar against the euro.
Most forecasters continue to look for the dollar to weaken again to as low as
$1.30 - $1.40 against the euro by the end of the year; however, much of this
quarter saw the dollar strengthen relative to the euro. With less official
intervention, the yen was allowed to appreciate, and this may have provided the
pricing references for some of the gold price movement during the quarter.
Once again, trading in gold on the New York Comex was the prime price mover for
the metal.
A major sell-off of long positions on Comex in mid- quarter pulled the gold
price down to its low of $388/oz but provided the opportunity for renewed buying
late in the quarter as circumstances changed. This renewed buying took the net
long position on Comex to a new high of 20.8Moz or almost 650t of gold, and
lifted the spot gold price briefly back over $430/oz.
Following the end of the quarter, a correction in this record long open position
on Comex has taken net long interest back down to some 17Moz and with it, the
gold price back down below $400/oz.
For the first time since the start of the war in Iraq last year, renewed buying
was triggered mainly by political rather than economic events, particularly the
major terrorist attack in Madrid, the Israeli assassination of the Hamas leader,
Sheik Ahmad Yassin, and escalating violence and tension in Iraq.
Looking ahead, whilst elements of the global economic outlook are favourable for
a higher gold price, weak fundamentals in the physical market remain a cause of
concern.
PHYSICAL DEMAND
The physical market for gold remains vulnerable, with sustained levels of supply
- mine production, scrap and central bank sales - but poor physical demand.
Jewellery offtake remains depressed, and de-hedging by gold producers is likely
to continue at a quieter pace than it did during 2002 and the first half of
2003. This leaves the oversupply of gold to be absorbed by incremental
investment demand for the metal.
Whilst firmer gold prices affected gold offtake in India for much of the
quarter, a weaker spot price and stronger rupee at the end of the period brought
some optimism to this important market, in time for the final two months of the
Indian wedding season, when gold offtake potential is most favourable.
OFFICIAL SECTOR
European central banks announced early in March the renewal of the 1999
Washington Agreement governing gold sales by those banks for a further five
years with effect from September 2004. The renewed agreement provides for annual
sales of up to 500t for a maximum aggregate sale of 2,500t of gold over five
years.
By comparison with the original agreement in 1999, where the agreed sales volume
of 2,000t was fully subscribed early on in the agreement, this renewal has only
one substantial sale of 600t by the German Bundesbank proposed within its terms.
The Swiss National Bank will sell the remaining 130t under the first agreement,
and plans no gold sales beyond this. The Bank of England has indicated that it
has no plans to sell gold. It is likely that the central banks of Holland,
Portugal and Austria will also sell gold holdings under this agreement. However,
without some decision by the two major European holders of gold reserves, France
(3,025t) and Italy (2,452t) to change existing policies, and sell some of these
reserves, it is not clear whether the signatories will in fact sell as much as
the ceiling of 2,500t proposed by the agreement.
The agreement reaffirmed that the signatories believe that "gold remains an
important element of global monetary reserves", and repeated their acceptance of
a cap on all gold leasing and derivatives activities at the levels that existed
amongst the signatories at September 1999.
The signatories between them hold some 13,400t of gold, or 41% of all official
reserves. If it is assumed that the agreement will receive the same support from
the USA, Japan, the IMF and the BIS that the first agreement received, the
official gold holdings affected by the terms of the renewal agreement will be
slightly more than 80% of all official gold reserves. The renewal will, in
effect, cover all major official holders of gold, and will ensure a continuation
of orderly behaviour by the official sector in the gold market that has been so
beneficial to this market since 2000.
In previous quarters, we reported signals of possible interest in gold purchases
by central banks, particularly in Russia and Japan. During the past quarter, the
Japanese Ministry of Finance specifically rejected the possibility of larger
gold holdings in the official reserves of Japan. The Chairman of the
Russian Central Bank, however, repeated Russia"s interest in increasing its gold
and currency reserve holdings.
CURRENCIES
Currency markets continue to be active, although the focus has moved from the
euro to the yen.
The quarter saw the dollar pull back from progressive weakening against the
euro, strengthening by some 7% from mid-February, and consolidating around
$1.20/euro. A number of factors assisted the dollar, including continuing
economic growth in the US, unexpectedly positive US payroll data late in the
quarter, and the beginning of some expectation of higher US interest rates. In
contrast to the euro market, the reduction in official intervention in the yen
market saw the Japanese currency move up from its low point of Y112 against the
dollar this quarter, to reach a high of Y103.5 to the dollar. It remains to be
seen whether Japanese monetary authorities will be prepared to see a progressive
strengthening of their currency against the dollar as happened with the euro, or
whether they will resume buying of dollars to keep the yen relatively weak for
trade reasons.
The rand has regained all of the strength it appeared to lose late last year,
and touched a high of R6.18 to the dollar during this quarter.
The stronger dollar has brought no relief, and the local currency has not
weakened proportionately to the dollar.
South African interest rates remained unchanged and any weakening in the rand
must probably wait until the interest rate differential between South Africa and
the USA becomes less favourable to South Africa.
HEDGING
As at 31 March 2004, the net delta hedge position of the company was 8.16Moz, or
253.9t at a spot price of $425/oz. The marked-to-market value of this position
as at 31 March 2004 was negative $651.9m, little changed from the marked-to-
market value of the hedge at 31 December 2003.
The relatively small reduction in the level of hedging compared with the level
at 31 December 2003 is a result of a higher delta volume, consequent on a higher
spot price of gold at this quarter-end ($425/oz compared with $415.75/oz at 31
December 2003). The company continues to manage its hedge positions actively,
and to reduce overall levels of forward pricing on gold.
Hedge position
As at 31 March 2004, the group had outstanding the following forward-pricing
commitments against future production. The total net delta tonnage of the hedge
on this date was 8.16Moz or 253.9t (at 31 December 2003:
8.59Moz or 267.1t).
The marked-to-market value of all hedge transactions making up the hedge
positions was a negative $651.9m (negative R4.1bn) as at 31 March 2004 (as at 31
December 2003: negative $663.7m, or R4.4bn).
These values were based on a gold price of $425/oz, exchange rates of R/$6.28
and A$/$0.76 and the prevailing market interest rates and volatilities at that
date.
As at 28 April 2004, the marked-to-market value of the hedge book was a negative
$533m (negative R3.55bn), based on a gold price of $397/oz and exchange rates of
R/$6.67 and A$/$0.7310 and the prevailing market interest rates and volatilities
at the time.
These marked-to-market valuations are not predictive of the future value of the
hedge position, nor of future impact on the revenue of the company. The
valuation represents the cost of buying all hedge contracts at the time of
valuation, at market prices and rates available at the time.
Year 2004 2005
DOLLAR GOLD
Forward contracts Amount (kg) 17,470 26,576
$ per oz $313 $324
Put options purchased Amount (kg) 3,396 2,624
$ per oz $362 $363
*Delta (kg) 372 532
Put options sold Amount (kg) 14,152 2,799
$ per oz $359 $345
*Delta (kg) 785 292
Call options purchased Amount (kg) 14,838
$ per oz $356
*Delta (kg) 14,742
Call options sold Amount (kg) 12,547 18,227
$ per oz $386 $338
*Delta (kg) 9,827 16,090
RAND GOLD
Forward contracts Amount (kg) 5,316 5,874
Rand per kg R71,698 R126,919
Put options purchased Amount (kg) 933 2,808
Rand per kg R99,346 R95,511
*Delta (kg) 915 1,142
Put options sold Amount (kg) 6,065 1,400
Rand per kg R86,198 R88,414
*Delta (kg) 2,410 442
Call options purchased Amount (kg) 933
Rand per kg R74,268
*Delta (kg) 933
Call options sold Amount (kg) 5,842 5,620
Rand per kg R110,096 R130,321
*Delta (kg) 866 1,446
2006 2007
DOLLAR GOLD
Forward contracts Amount (kg) 19,862 18,974
$ per oz $333 $337
Put options purchased Amount (kg) 4,918 728
$ per oz $363 $292
*Delta (kg) 945 31
Put options sold Amount (kg) 4,354
$ per oz $339
*Delta (kg) 523
Call options purchased Amount (kg)
$ per oz
*Delta (kg)
Call options sold Amount (kg) 16,547 14,308
$ per oz $346 $336
*Delta (kg) 14,061 12,651
RAND GOLD
Forward contracts Amount (kg) 4,500 2,830
Rand per kg R96,436 R118,197
Put options purchased Amount (kg) 2,808
Rand per kg R95,511
*Delta (kg) 848
Put options sold Amount (kg) 1,400
Rand per kg R88,414
*Delta (kg) 333
Call options purchased Amount (kg)
Rand per kg
*Delta (kg)
Call options sold Amount (kg) 5,621 1,493
Rand per kg R131,389 R173,119
*Delta (kg) 1,937 231
2008 2009-2013 Total
DOLLAR GOLD
Forward contracts Amount (kg) 15,801 10,078 108,761
$ per oz $352 $360 $333
Put options purchased Amount (kg) 11,666
$ per oz $358
*Delta (kg) 1,880
Put options sold Amount (kg) 21,305
$ per oz $353
*Delta (kg) 1,600
Call options purchased Amount (kg) 14,838
$ per oz $356
*Delta (kg) 14,742
Call options sold Amount (kg) 14,183 40,061 115,873
$ per oz $347 $369 $356
*Delta (kg) 12,253 33,195 98,077
RAND GOLD
Forward contracts Amount (kg) 2,799 933 22,252
Rand per kg R120,662 R116,335 R105,222
Put options purchased Amount (kg) 6,549
Rand per kg R96,057
*Delta (kg) 2,905
Put options sold Amount (kg) 8,865
Rand per kg R86,898
*Delta (kg) 3,185
Call options purchased Amount (kg) 933
Rand per kg 74,268
*Delta (kg) 933
Call options sold Amount (kg) 2,986 8,958 30,520
Rand per kg R187,586 R216,522 R159,643
*Delta (kg) 496 2,032 7,008
Year 2004 2005
A DOLLAR GOLD
Forward contracts Amount (kg) 8,215 5,443
A$ per oz A$491 A$682
Put options purchased Amount (kg)
A$ per oz
*Delta (kg)
Put options sold Amount (kg) 933
A$ per oz A$540
*Delta (kg) 88
Call options purchased Amount (kg) 1,400 3,110
A$ per oz A$473 A$724
*Delta (kg) 1,400 480
Call options sold Amount (kg) 1,866
A$ per oz A$543
*Delta (kg) 1,590
Delta (kg) 24,214 55,889
Total net gold:
Delta (oz) 778,495 1,796,866
2006 2007
A DOLLAR GOLD
Forward contracts Amount (kg) 9,331 8,398
A$ per oz A$663 A$635
Put options purchased Amount (kg)
A$ per oz
*Delta (kg)
Put options sold Amount (kg)
A$ per oz
*Delta (kg)
Call options purchased Amount (kg) 6,221 3,732
A$ per oz A$673 A$668
*Delta (kg) 2,655 1,844
Call options sold Amount (kg)
A$ per oz
*Delta (kg)
Delta (kg) 47,973 41,272
Total net gold:
Delta (oz) 1,542,376 1,326,914
2008 2009-2013 Total
A DOLLAR GOLD
Forward contracts Amount (kg) 3,110 10,233 44,730
A$ per oz A$649 A$651 A$625
Put options purchased Amount (kg)
A$ per oz
*Delta (kg)
Put options sold Amount (kg) 933
A$ per oz A$540
*Delta (kg) 88
Call options purchasedAmount (kg) 3,110 8,087 25,660
A$ per oz A$680 A$710 A$680
*Delta (kg) 1,716 4,680 12,775
Call options sold Amount (kg) 1,866
A$ per oz A$543
*Delta (kg) 1,590
Delta (kg) 32,743 51,791 253,882
Total net gold:
Delta (oz) 1,052,719 1,665,107 8,162,478
The following table indicates the group"s currency hedge position at
31 March 2004
Year 2004 2005 2006
RAND DOLLAR (000)
Forward contracts Amount ($)
Rand per $
Put options purchased Amount ($) 10,000
Rand per $ R7.30
*Delta ($) 10,000
Put options sold Amount ($) 10,000
Rand per $ R6.75
*Delta ($) 9,964
Call options purchased Amount ($)
Rand per $
*Delta ($)
Call options sold Amount ($) 55,000
Rand per $ R6.98
*Delta ($) 2,722
A DOLLAR (000)
Forward contracts Amount ($) 50,237
$ per A$ $0.58
Put options purchased Amount ($) 10,000
$ per A$ $0.63
*Delta ($) 9,946
Put options sold Amount ($) 10,000
$ per A$ $0.68
*Delta ($) 9,138
Call options purchased Amount ($)
$ per A$
*Delta ($)
Call options sold Amount ($) 20,000
$ per A$ $0.60
*Delta ($) 8
Year 2007 2008 2009-2013 Total
RAND DOLLAR (000)
Forward contracts Amount ($)
Rand per $
Put options purchased Amount ($) 10,000
Rand per $ R7.30
*Delta ($) 10,000
Put options sold Amount ($) 10,000
Rand per $ R6.75
*Delta ($) 9,964
Call options purchasedAmount ($)
Rand per $
*Delta ($)
Call options sold Amount ($) 55,000
Rand per $ R6.98
*Delta ($) 2,722
A DOLLAR (000)
Forward contracts Amount ($) 50,237
$ per A$ $0.58
Put options purchased Amount ($) 10,000
$ per A$ $0.63
*Delta ($) 9,946
Put options sold Amount ($) 10,000
$ per A$ $0.68
*Delta ($) 9,138
Call options purchasedAmount ($)
$ per A$
*Delta ($)
Call options sold Amount ($) 20,000
$ per A$ $0.60
*Delta ($) 8
* The Delta position indicated above reflects the nominal amount of the
option multiplied by the mathematical probability of the option being
exercised. This is calculated using the Black-Scholes option formula with
the ruling market prices, interest rates and volatilities as at 31 March
2004.
Revision to 2004 forecast
The group"s estimates for gold production, cash costs per oz and capital
expenditure for 2004 were set out in the 2003 Annual Financial Statements.
As indicated in the trading statement issued on 21 April, it is expected that
AngloGold (excluding Ashanti) will meet its production forecast of 5.3Moz for
2004. However, AngloGold"s estimates for cash costs per oz and capital
expenditure have increased in dollar terms due to a revised view on to 2004
forecast the Rand/Dollar exchange rate from $1=R7 to $1=R6.81, leading to the
revisions set out in the table below. AngloGold have also revised its estimates
for the combined AngloGold Ashanti group to accommodate the fact that Ashanti
production will be incorporated from the beginning of May and not April, and
this adjusted forecast is also set out below.
Revised forecast for 2004
As per 2003 Annual Financial
Statements
AngloGold Ashanti AngloGold
excluding including
Ashanti Ashanti
Gold production oz 000 5,316 1,157 6,473
Total cash costs $/oz 245 233 243
Capital expenditure $m 477 119 596
Updated April 2004
AngloGold Ashanti AngloGold
excluding wef Ashanti
Ashanti May 2004
Gold production oz 000 5,311 1,029 6,340
Total cash costs $/oz 254 233 250
Capital expenditure $m 484 89 573
GROUP INCOME STATEMENT
Quarter Quarter Quarter Year
ended ended ended ended
March December March December
2004 2003 2003 2003
SA Rand million Notes Unaudited Unaudited Unaudited Audited
Gold income 3,298 3,685 3,938 15,264
Cost of sales 2 (2,581) (2,821) (2,885) (11,458)
717 864 1,053 3,806
Non-hedge derivatives (1) 196 155 861
Operating profit 716 1,060 1,208 4,667
Corporate administration
and other expenses (76) (60) (85) (273)
Market development costs (26) (46) (40) (139)
Exploration costs (59) (68) (75) (283)
Interest receivable 83 94 71 285
Other net (expense)
income (9) 7 (31) (123)
Finance costs (145) (145) (69) (362)
Fair value (losses) gains
on interest rate swaps (18) 32 - 38
Abnormal items - (122) - (122)
Profit before
exceptional items 466 752 979 3,688
Amortisation of goodwill (52) (52) (58) (221)
Impairment of mining
assets - 20 - (327)
Profit on disposal of
assets and subsidiaries 20 19 - 75
Profit on disposal
of investments - 51 - 331
Profit on ordinary
activities before
taxation 434 790 921 3,546
Taxation 3 (149) (142) (338) (1,080)
Profit on ordinary
activities after taxation 285 648 583 2,466
Minority interest (37) (32) (36) (130)
Minority interest
in abnormal items - (5) - (5)
Net profit 248 611 547 2,331
Adjusted operating profit
The operating profit has
been adjusted by the
following to arrive
at adjusted
operating profit:
Operating profit 716 1,060 1,208 4,667
Unrealised non-hedge
derivatives 168 (134) 8 (438)
Adjusted operating
profit 884 926 1,216 4,229
Headline earnings
The net profit has been
adjusted by the following
to arrive at headline earnings:
Net profit 248 611 547 2,331
Amortisation of goodwill 52 52 58 221
Impairment of mining assets - (20) - 327
Profit on disposal of assets
and subsidiaries (20) (19) - (75)
Profit on disposal of investments - (51) - (331)
Current and deferred taxation
on exceptional items 3 6 12 - (94)
Headline earnings 286 585 605 2,379
Unrealised non-hedge derivatives
and fair value gains (losses)
on interest rate swaps 186 (166) 8 (476)
Deferred tax on unrealised
non-hedge derivatives and
fair value (losses) gains
on interest rate swaps 3 (72) 87 1 230
Adjusted headline earnings 400 506 614 2,133
Earnings per ordinary share (cents)
- Basic 111 274 246 1,046
- Diluted 111 273 246 1,042
- Headline 128 263 272 1,068
- Adjusted headline 179 227 276 957
Dividends
- Rm
1,584
- cents per share
710
The results have been prepared in accordance with International Financial
Reporting Standards (IFRS).
GROUP INCOME STATEMENT
Quarter Quarter Quarter Year
ended ended ended ended
March December March December
2004 2003 2003 2003
US Dollar million Notes Unaudited Unaudited Unaudited Audited
Gold income 488 547 472 2,029
Cost of sales 2 (381) (419) (346) (1,526)
107 128 126 503
Non-hedge derivatives 1 31 19 119
Operating profit 108 159 145 622
Corporate administration
and other expenses (11) (9) (10) (36)
Market development costs (4) (7) (5) (19)
Exploration costs (9) (10) (9) (38)
Interest receivable 12 14 8 38
Other net (expense) income (2) 1 (3) (15)
Finance costs (21) (21) (8) (49)
Fair value (losses) gains
on interest rate swaps (3) 5 - 6
Abnormal items - (19) - (19)
Profit before
exceptional items 70 113 118 490
Amortisation of goodwill (8) (8) (7) (29)
Impairment of mining assets - 2 - (44)
Profit on disposal of
assets and subsidiaries 4 3 - 10
Profit on disposal
of investments - 8 - 45
Profit on ordinary
activities before taxation 66 118 111 472
Taxation 3 (22) (20) (41) (142)
Profit on ordinary
activities after taxation 44 98 70 330
Minority interest (6) (4) (4) (17)
Minority interest
in abnormal items - (1) - (1)
Net profit 38 93 66 312
Adjusted operating profit
The operating profit has
been adjusted by the
following to arrive
at adjusted
operating profit:
Operating profit 108 159 145 622
Unrealised non-hedge
derivatives 24 (22) 1 (63)
Adjusted operating profit 132 137 146 559
Headline earnings
The net profit has been
adjusted by the following
to arrive at headline earnings:
Net profit 38 93 66 312
Amortisation of goodwill 8 8 7 29
Impairment of mining assets - (2) - 44
Profit on disposal of assets
and subsidiaries (4) (3) - (10)
Profit on disposal
of investments - (8) - (45)
Current and deferred
taxation on exceptional items 3 2 1 - (12)
Headline earnings 44 89 73 318
Unrealised non-hedge
derivatives
and fair value gains (losses)
on interest rate swaps 27 (27) 1 (69)
Deferred tax on unrealised
non-hedge derivatives
and fair value (losses) gains
on interest rate swaps 3 (11) 13 - 33
Adjusted headline earnings 60 75 74 282
Earnings per ordinary share
(cents)
- Basic 17 42 30 140
- Diluted 17 42 30 139
- Headline 20 40 33 143
- Adjusted headline 27 34 33 127
Dividends
- $m 224
- cents per share 101
The results have been prepared in accordance with International
Financial Reporting Standards (IFRS).
Dividends are translated at actual rates on date of payment.
GROUP BALANCE SHEET
As at As at As at
March December March
2004 2003 2003
SA Rand million Unaudited Audited Unaudited
ASSETS
Non-current assets
Mining assets 18,082 18,427 18,902
Goodwill 2,545 2,749 3,023
Investments in associates 47 47 156
Other investments 99 62 182
AngloGold Environmental
Rehabilitation Trust 360 352 286
Other non-current assets 615 667 469
Derivatives 696 630 596
22,444 22,934 23,614
Current assets
Inventories 1,853 2,050 1,818
Trade and other receivables 1,542 1,461 2,107
Cash and cash equivalents 5,868 3,367 2,686
Current portion of other
non-current assets 103 59 3
Derivatives 2,062 2,515 2,162
11,428 9,452 8,776
TOTAL ASSETS 33,872 32,386 32,390
EQUITY AND LIABILITIES
Equity 11,089 11,206 12,042
Non-current liabilities
Borrowings 7,977 5,383 6,643
Provisions 1,808 1,832 1,977
Deferred taxation 4,091 3,986 3,767
Derivatives 2,086 2,194 1,398
15,962 13,395 13,785
Current liabilities
Current portion of borrowings 2,151 2,340 616
Trade and other payables 1,971 2,339 2,205
Taxation 141 164 1,270
Derivatives 2,558 2,942 2,472
6,821 7,785 6,563
TOTAL EQUITY AND LIABILITIES 33,872 32,386 32,390
The results have been prepared in accordance with International Financial
Reporting Standards (IFRS).
GROUP BALANCE SHEET
As at As at As at
March December March
2004 2003 2003
US Dollar million Unaudited Audited Unaudited
ASSETS
Non-current assets
Mining assets 2,877 2,764 2,394
Goodwill 405 412 383
Investments in associates 7 7 20
Other investments 16 9 23
AngloGold Environmental
Rehabilitation Trust 57 53 36
Other non-current assets 98 101 59
Derivatives 111 94 75
3,571 3,440 2,990
Current assets
Inventories 295 307 230
Trade and other receivables 245 219 267
Cash and cash equivalents 934 505 340
Current portion of
other non-current assets 16 9 -
Derivatives
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