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ANGLOGOLD ASHANTI LIMITED - REPORT TO SHAREHOLDERS FOR THE QUARTER AND NINE
MONTHS ENDED 30 SEPTEMBER 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
Report to shareholders for the quarter and nine months ended 30 September 2004
Group results for the quarter...
* Production for the quarter increased by 9% to 1.628Moz
* Total cash costs rose by 5% to $272/oz, due mainly to continued strengthening
of operating currencies and the effects of inflation
* South African total cash costs increased by only 3% to R60,687/kg, despite a
7% mid-year wage increase
* Average spot gold price rose 2% to $402/oz; received price1 of gold up $7/oz
to $392/oz
* Adjusted headline earnings2 decreased by 16% to $43m due to cost increases
SA rand / Metric
Quarter Quarter
ended ended
Sept June
2004 2004
Unaudited Unaudited
Operating review
Gold
Produced - kg / oz (000) 50,623 46,330
Price received1 - R/kg / $/oz 80,572 81,276
Total cash costs3 - R/kg / $/oz 55,744 55,162
Total production costs3 - R/kg / $/oz 69,582 68,659
Financial review
Operating profit - R / $ million 602 203
Adjusted operating profit4 - R / $ million 631 702
Net profit (loss) - R / $ million 253 (70)
Headline earnings (loss) - R / $ million 274 (22)
Adjusted headline earnings2 - R / $ million 280 322
Capital expenditure3 - R / $ million 1,004 1,012
Earnings (loss) per ordinary
share - cents/share
Basic 96 (28)
Diluted 96 (28)
Headline 104 (9)
Adjusted headline2 106 127
Dividends - cents/share
Nine Nine
months months
ended ended
Sept Sept
2004 2003
Unaudited Unaudited
Operating review
Gold
Produced - kg / oz (000) 135,370 131,457
Price received1 - R/kg / $/oz 82,896 88,852
Total cash costs3 - R/kg / $/oz 55,727 52,206
Total production costs3 - R/kg / $/oz 69,166 63,716
Financial review
Operating profit - R / $ million 1,520 3,607
Adjusted operating profit4 - R / $ million 2,216 3,303
Net profit (loss) - R / $ million 431 1,721
Headline earnings (loss) - R / $ million 538 1,794
Adjusted headline earnings2 - R / $ million 1,001 1,628
Capital expenditure3 - R / $ million 2,583 2,181
Earnings (loss) per ordinary
share - cents/share
Basic 175 773
Diluted 175 769
Headline 218 805
Adjusted headline2 405 731
Dividends - cents/share 170 375
US dollar / Imperial
Quarter Quarter
ended ended
Sept June
2004 2004
Unaudited Unaudited
Operating review
Gold
Produced - kg / oz (000) 1,628 1,490
Price received1 - R/kg / $/oz 392 385
Total cash costs3 - R/kg / $/oz 272 260
Total production costs3 - R/kg / $/oz 340 324
Financial review
Operating profit - R / $ million 97 26
Adjusted operating profit4 - R / $ million 98 108
Net profit (loss) - R / $ million 40 (12)
Headline earnings (loss) - R / $ million 44 (5)
Adjusted headline earnings2 - R / $ million 43 51
Capital expenditure3 - R / $ million 156 153
Earnings (loss) per ordinary
share - cents/share
Basic 15 (5)
Diluted 15 (5)
Headline 17 (2)
Adjusted headline2 16 20
Dividends - cents/share
Nine Nine
months months
ended ended
Sept Sept
2004 2003
Unaudited Unaudited
Operating review
Gold
Produced - kg / oz (000) 4,352 4,226
Price received1 - R/kg / $/oz 393 354
Total cash costs3 - R/kg / $/oz 265 208
Total production costs3 - R/kg / $/oz 328 254
Financial review
Operating profit - R / $ million 230 463
Adjusted operating profit4 - R / $ million 337 422
Net profit (loss) - R / $ million 66 219
Headline earnings (loss) - R / $ million 82 228
Adjusted headline earnings2 - R / $ million 153 207
Capital expenditure3 - R / $ million 393 279
Earnings (loss) per ordinary
share - cents/share
Basic 27 98
Diluted 27 98
Headline 33 102
Adjusted headline2 62 93
Dividends - cents/share 26 51
Notes: 1. Price received including realised non-hedge derivatives.
2. Headline earnings (loss) before unrealised non-hedge derivatives
and fair value gains (losses) on interest rate swaps.
3. 2003 restated to reflect the change in accounting treatment of ore
reserve development expenditure.
4. Operating profit excluding unrealised non-hedge derivatives.
$ represents US dollar, unless otherwise stated.
Operations at a glance
for the quarter ended 30 September 2004
Price received1 Production
% %
$/oz Variance4 oz (000) Variance4
Great Noligwa 410 5 207 6
TauTona 409 5 144 (2)
Sunrise Dam 418 (1) 112 15
AngloGold Ashanti Brazil 370 (6) 64 (2)
Cerro Vanguardia6 380 5 61 30
Kopanang 408 5 119 (2)
Cripple Creek & Victor 325 (1) 90 18
Mponeng 408 5 118 12
Geita5 368 3 148 6
Bibiani 397 2 46 84
Sadiola6 397 1 38 (14)
Serra Grande6 363 (7) 24 4
Iduapriem6 375 (6) 55 104
Yatela6 402 2 24 (4)
Morila6 361 2 37 9
Obuasi 379 (5) 94 32
Navachab 387 (2) 18 13
Freda-Rebecca 447 7 5 25
Tau Lekoa 408 5 70 (14)
Ergo 409 5 53 (10)
Siguiri6 384 - 23 35
Savuka 409 5 43 13
Other 35 13
AngloGold Ashanti 392 2 1,628 9
Cash operating
Total cash costs profit2
% %
$/oz Variance4 $m Variance4
Great Noligwa 233 4 33 10
TauTona 253 10 22 5
Sunrise Dam 231 (9) 19 (17)
AngloGold Ashanti Brazil 130 1 16 (6)
Cerro Vanguardia6 145 (22) 16 60
Kopanang 303 15 12 (8)
Cripple Creek & Victor 218 5 12 (8)
Mponeng 314 (3) 10 67
Geita5 294 30 8 (43)
Bibiani 235 (1) 7 133
Sadiola6 267 15 6 -
Serra Grande6 136 9 6 -
Iduapriem6 252 (18) 5 -
Yatela6 233 (2) 4 -
Morila6 248 4 3 (25)
Obuasi 300 3 3 (25)
Navachab 301 (6) 1 (50)
Freda-Rebecca 394 (12) 1 200
Tau Lekoa 406 28 - (100)
Ergo 391 - (2) -
Siguiri6 504 31 (2) -
Savuka 451 (2) (3) 25
Other 14 (13)
AngloGold Ashanti 272 5 191 2
Adjusted operating
profit3
%
$m Variance4
Great Noligwa 29 12
TauTona 13 -
Sunrise Dam 13 (28)
AngloGold Ashanti Brazil 13 (7)
Cerro Vanguardia6 9 200
Kopanang 9 (10)
Cripple Creek & Victor 2 (50)
Mponeng 3 100
Geita5 - (100)
Bibiani 2 -
Sadiola6 3 (25)
Serra Grande6 5 -
Iduapriem6 2 -
Yatela6 2 (33)
Morila6 - (100)
Obuasi (4) -
Navachab 1 -
Freda-Rebecca - 100
Tau Lekoa (4) (500)
Ergo (2) -
Siguiri6 (1) 50
Savuka (5) 29
Other 8 (11)
AngloGold Ashanti 98 (9)
1 Price received includes realised non-hedge derivatives.
2 Adjusted operating profit plus amortisation of mining assets less non-cash
revenues.
3 Operating profit excluding unrealised non-hedge derivatives.
4 Variance September 2004 quarter on June 2004 quarter - increase (decrease).
5 Attributable 100% from May 2004.
6 Attributable.
Review of the gold market
After the price correction of the second quarter, the period under review saw
the gold price consolidate, and then resume the upward trend of the past three
years. The market closed at the high for the quarter of $418/oz, $25/oz higher
than the price at the close of the second quarter. The average spot price for
the quarter of $402/oz was up by $8/oz on the average price for the previous
quarter. The trading range of $34/oz showed a reduction in volatility in the
price after the range of $59/oz in the second quarter. See graph 1 `Gold/US$
Spot Price : 2004`.
GOLD
Following the second quarter fall in the gold price on the back of fears of a
credit squeeze in China and a hard landing for the Chinese economy, and the
associated sell-off in commodities that accompanied this fear, the gold price
has regained most of its strength during the third quarter.
Since the end of the quarter, the price has come close to the high of $430/oz
seen in the first quarter of this year. Whilst the gold price continues to be
most responsive to movements in the US dollar exchange rate against the euro,
the price has also shown some independence during the quarter, rising firmly
even when there has been little movement in the currency markets. This would
seem to reflect increased investor interest in gold as part of a broader move
of investment money towards hard assets. This pattern has been evident in other
markets during this period. This does not necessarily signal a disconnect from
the US dollar or the US economy and gold is likely to benefit from dollar
weakness in the future. It is rather that the gold market seems to have found
supplementary reasons for appealing to investors, to the benefit of the price
today.
Once again, the vehicle for interest in gold was primarily the New York
Commodities Exchange (Comex), and the movement in the dollar gold spot price
reflects increasing interest in gold on the exchange during the quarter. The
net open position at the end of September reached over 19Moz, and has remained
since then at almost 20Moz net long. This figure is very close to the all-time
high net position on the Comex of 22.6Moz net long in the first week of April
2004, and the gold price has tracked this interest closely. News from the US
economy in particular, and the direction of the US dollar during the balance of
this quarter, will be important factors in the behaviour of investors towards
gold on Comex going forward.
See graph 2 `NY Comex : Nett Open Interest and Gold Price : 2004`.
PHYSICAL DEMAND
The physical market for gold remains relatively quiet and the market is
dependent on investment demand to clear the supply/demand balance.
Nevertheless, there has been encouraging news from some areas of a year-on-year
recovery in gold offtake. Demand for gold for jewellery in Turkey was
particularly strong in the first half of 2004, although it should be borne in
mind that an important part of this growth arises from Turkey winning market
share from Italy, the developed world`s largest gold jewellery manufacturer.
The market in mainland China also reported positive growth due entirely to a
new category of modern 18ct gold jewellery introduced by the World Gold Council
to that market. With the end of the monsoon season and the commencement of the
auspicious period for marriages in India, there has been some recovery in
offtake in the Indian market in spite of the higher US dollar spot prices.
CURRENCIES
Since early 2004, the US dollar has recovered from its weakest position in the
current cycle of $1.30 to the euro. For much of this year, the dollar has
traded sideways in a range of $1.18-$1.24 to the euro. However, most
commentators see this sideways movement as temporary and forecast an inevitable
further decline of the US currency against both the euro and the yen.
Market forecasts project the dollar between $1.30 and $1.40 against the euro
and between Y100 and Y105 by the end of 2005. Even the exceptions to these
forecasts see the dollar only in a sideways channel, trading between $1.15 and
$1.20, rather than any measurable strengthening of the US currency. In
structural terms, there are economic circumstances - particularly in the shape
of rising deficits in the US economy - which would seem to make it likely that
the US dollar should weaken further, and possibly substantially. In previous
economic cycles, budget and current account deficits in the US have made
recession almost inevitable in order to bring economic fundamentals back into
balance. However, with the other major economies (Japan and Europe) showing
lower growth rates and more serious economic structural problems, and with the
significant role played in global trade flows today by China, it is not yet
certain that recession is quite as inevitable.
See graph 3 `US$/Euro Exchange Rate : 2001- 2004
A period of weakness in the South African currency during the quarter was
followed by an unexpected rate cut of 50 basis points by the South African
Reserve Bank, which caused the market to pause briefly.
However, for the rest of the quarter, the rand performed robustly.
The average exchange rate for the quarter of R6.37 to the US dollar is the
strongest average exchange rate for a quarter since the final quarter of 1999.
The rand shows no sign of weakness in the current market circumstances. In many
ways, the strength of the currency over the past two years is justified on
sound economic terms - the South African economy today is well managed with a
low budget deficit, an effective fiscal regime and declining inflation. There
is probably more good news to come (for example, in regard to further country
risk ratings), which will bolster the currency further in the short term.
HEDGING
As at 30 September 2004, the net delta hedge position of AngloGold Ashanti was
12.71Moz or 395.3t, valued at the spot price of gold on that date of
$418.80/oz. This net delta position reflects a slight increase of some
212,000oz or 6.6t in the net size of the combined AngloGold Ashanti hedge
compared with the end of the previous quarter.
This increase is due entirely to the increase in the delta volume of short call
options in the hedge value at a gold price $25/oz higher than the price at
which the hedge was valued on 30 June 2004.
Outright forward contracts declined quarter-on- quarter by some 340,000oz, or
10.5t. The marked-to-market value of the position as at 30 September 2004 was
negative $1,139m, again reflecting the sharply higher dollar price against
which the hedge was valued in comparison with the previous valuation at 30 June
2004. The company continues to manage its hedge positions actively, and to
reduce overall levels of pricing commitments in respect of future production of
gold.
Hedge position
As at 30 September 2004, the group had outstanding the following
forward-pricing commitments against future production. The total net delta
tonnage of the hedge of the company on this date was 12.71Moz or 395.3t (at 30
June 2004: 12.5Moz or 388.9t).
The marked-to-market value of all hedge transactions making up the hedge
positions was a negative $1.139bn (negative R7.346bn) as at 30 September 2004
(as at 30 June 2004: $927.1m or R5.71bn). This value at 30 September 2004 was
based on a gold price of $418.80/oz, exchange rates of R/$6.45 and A$/$0.7258
and the prevailing market interest rates and volatilities at that date.
As at 27 October 2004, the marked-to-market value of the hedge book was a
negative $1.192bn (negative R7.42bn), based on a gold price of $425.50/oz and
exchange rates of R/$6.2275 and A$/$0.7452 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 2006 2007
DOLLAR GOLD
Forward contracts Amount (kg) 18,558 51,150 39,918 38,519
$ per oz $323 $329 $341 $343
Put options
purchased Amount (kg) 2,264 3,381 5,481 1,455
$ per oz $391 $347 $355 $292
*Delta (kg) 750 496 871 50
Put options sold Amount (kg) 6,532 2,799 4,354
$ per oz $369 $345 $339
*Delta (kg) 746 181 432
Call options
purchased Amount (kg) 6,551 8,947 1,538 2,003
$ per oz $350 $339 $370 $361
*Delta (kg) 6,518 8,395 1,243 1,671
Call options sold Amount (kg) 10,556 38,075 22,208 20,647
$ per oz $370 $383 $351 $346
*Delta (kg) 9,328 32,634 18,948 18,046
Year 2008 2009-2013 Total
DOLLAR GOLD
Forward contracts Amount (kg) 28,256 62,779 239,180
$ per oz $360 $370 $347
Put options purchased Amount (kg) 12,581
$ per oz $352
*Delta (kg) 2,167
Put options sold Amount (kg) 13,685
$ per oz $355
*Delta (kg) 1,359
Call options purchased Amount (kg) 19,039
$ per oz $348
*Delta (kg) 17,827
Call options sold Amount (kg) 22,096 46,833 160,415
$ per oz $358 $375 $367
*Delta (kg) 18,807 39,590 137,353
Year 2004 2005 2006 2007
RAND GOLD
Forward
contracts Amount (kg)
Rand per kg
Put options
purchased Amount (kg) 933 1,875
Rand per kg R80,538 R93,602
*Delta (kg) 11 550
Put options
sold Amount (kg) 5,443 1,400
Rand per kg R84,801 R88,414
*Delta (kg) 1,466 365
Call options
purchased Amount (kg) 933
Rand per kg R79,251
*Delta (kg) 933
Call options
sold Amount (kg) 4,747 5,735 6,119 746
Rand per kg R91,727 R129,890 R118,721 R173,119
*Delta (kg) 3,580 1,093 1,900 81
Year 2008 2009-2013 Total
RAND GOLD
Forward contracts Amount (kg) 933 933
Rand per kg R116,335 R116,335
Put options purchased Amount (kg) 2,808
Rand per kg R89,261
*Delta (kg) 561
Put options sold Amount (kg) 6,843
Rand per kg R85,540
*Delta (kg) 1,831
Call options purchased Amount (kg) 933
Rand per kg R79,251
*Delta (kg) 933
Call options sold Amount (kg) 2,986 8,958 29,291
Rand per kg R187,586 R216,522 R154,850
*Delta (kg) 360 1,854 8,868
Year 2004 2005 2006 2007
A DOLLAR
GOLD
Forward
contracts Amount (kg) 5,494 4,199 9,331 8,398
A$ per oz A$578 A$599 A$671 A$648
Put
options
purchased Amount (kg) 1,244
A$ per oz A$585
*Delta (kg) 517
Put
options
sold Amount (kg) 1,400 1,244
A$ per oz A$574 A$553
*Delta (kg) 481 253
Call
options
purchased Amount (kg) 3,110 6,221 3,732
A$ per oz A$724 A$673 A$668
*Delta (kg) 289 2,776 1,998
Call
options
sold Amount (kg) 1,400 1,244
A$ per oz A$581 A$602
*Delta (kg) 557 573
Total net Delta (kg) 28,134 81,544 66,702 61,425
gold:
Delta (oz) 904,532 2,621,689 2,144,528 1,974,868
Year 2008 2009-2013 Total
A DOLLAR GOLD
Forward contracts Amount (kg) 3,110 6,501 37,033
A$ per oz A$665 A$678 A$645
Put options purchased Amount (kg) 1,244
A$ per oz A$585
*Delta (kg) 517
Put options sold Amount (kg) 2,644
A$ per oz A$564
*Delta (kg) 734
Call options purchased Amount (kg) 3,110 4,354 20,527
A$ per oz A$680 A$707 A$688
*Delta (kg) 1,902 2,867 9,832
Call options sold Amount (kg) 2,644
A$ per oz A$591
*Delta (kg) 1,130
Total net gold: Delta (kg) 48,631 108,790 395,227
Delta (oz) 1,563,532 3,497,663 12,706,812
The following table indicates the group`s currency hedge position at 30
September 2004
Year 2004 2005 2006 2007
RAND DOLLAR (000)
Forward contracts Amount ($)
Rand per $
Put options purchased Amount ($)
Rand per $
*Delta ($)
Put options sold Amount ($)
Rand per $
*Delta ($)
Call options purchased Amount ($)
Rand per $
*Delta ($)
Call options sold Amount ($) 50,000
Rand per $ R6.54
*Delta ($) 17,597
Year 2008 2009-2013 Total
RAND DOLLAR (000)
Forward contracts Amount ($)
Rand per $
Put options purchased Amount ($)
Rand per $
*Delta ($)
Put options sold Amount ($)
Rand per $
*Delta ($)
Call options purchased Amount ($)
Rand per $
*Delta ($)
Call options sold Amount ($) 50,000
Rand per $ R6.54
*Delta ($) 17,597
Year 2004 2005 2006 2007
A DOLLAR (000)
Forward contracts Amount ($) 55,237
$ per A$ A$0.59
Put options purchased Amount ($)
$ per A$
*Delta ($)
Put options sold Amount ($)
$ per A$
*Delta ($)
Call options purchased Amount ($)
$ per A$
*Delta ($)
Call options sold Amount ($)
$ per A$
*Delta ($)
Year 2008 2009-2013 Total
A DOLLAR (000)
Forward contracts Amount ($) 55,237
$ per A$ A$0.59
Put options purchased Amount ($)
$ per A$
*Delta ($)
Put options sold Amount ($)
$ per A$
*Delta ($)
Call options purchased Amount ($)
$ per A$
*Delta ($)
Call options sold Amount ($)
$ per A$
*Delta ($)
Year 2004 2005 2006 2007
BRAZILIAN REAL
(000)
Forward contracts Amount ($)
$ per BRL
Put options purchased Amount ($) 3,300 600
$ per BRL BRL3.13 BRL3.38
*Delta ($) 3,139 503
Put options sold Amount ($) 2,550 600
$ per BRL BRL2.79 BRL3.21
*Delta ($) 506 415
Call options purchased Amount ($)
$ per BRL
*Delta ($)
Call options sold Amount ($) 3,300 600
$ per BRL BRL3.23 BRL3.55
*Delta ($) 90 43
Year 2008 2009-2013 Total
BRAZILIAN REAL
(000)
Forward contracts Amount ($)
$ per BRL
Put options purchased Amount ($) 3,900
$ per BRL BRL3.17
*Delta ($) 3,642
Put options sold Amount ($) 3,150
$ per BRL BRL2.87
*Delta ($) 921
Call options purchased Amount ($)
$ per BRL
*Delta ($)
Call options sold Amount ($) 3,900
$ per BRL BRL3.28
*Delta ($) 133
Year 2004 2005 2006 2007
DOLLAR SILVER
Forward contracts Amount (kg)
$ per oz
Put options purchased Amount (kg) 7,776 31,104 31,104
$ per oz $7.00 $7.00 $7.00
*Delta (kg) 3,781 13,977 12,731
Put options sold Amount (kg) 7,776 31,104 31,104
$ per oz $6.06 $6.06 $6.06
*Delta (kg) 1,466 7,962 8,608
Call options purchased Amount (kg)
$ per oz
*Delta (kg)
Call options sold Amount (kg) 7,776 31,104 31,104
$ per oz $8.00 $8.00 $8.00
*Delta (kg) 1,758 11,172 14,229
Year 2008 2009-2013 Total
DOLLAR SILVER
Forward contracts Amount (kg)
$ per oz
Put options purchased Amount (kg) 69,984
$ per oz $7.00
*Delta (kg) 30,489
Put options sold Amount (kg) 69,984
$ per oz $6.06
*Delta (kg) 18,036
Call options purchased Amount (kg)
$ per oz
*Delta (kg)
Call options sold Amount (kg) 69,984
$ per oz $8.00
*Delta (kg) 27,159
* 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 30
September 2004.
Group income statement
Quarter Quarter
ended ended
September June
2004 2004
SA Rand million Notes Unaudited Unaudited
Gold income 4,171 3,705
Cost of sales 2 (3,651) (3,091)
520 614
Non-hedge derivatives 82 (411)
Operating profit 602 203
Corporate administration and other
expenses (84) (105)
Market development costs (30) (22)
Exploration costs (75) (72)
Interest receivable 63 72
Other net income (expenses) 13 (35)
Finance costs (129) (112)
Fair value gains (losses) on interest
rate swaps 24 (15)
Profit (loss) before exceptional items 384 (86)
Amortisation of goodwill (48) (54)
Impairment of mining assets (8) -
Profit on disposal of assets and
subsidiaries 36 7
Profit (loss) on ordinary activities
before taxation 364 (133)
Taxation 3 (72) 87
Profit (loss) on ordinary activities
after taxation 292 (46)
Minority interest (39) (24)
253 (70)
Net profit (loss)
Adjusted operating profit
The operating profit has been adjusted by
the
following to arrive at adjusted operating
profit:
Operating profit 602 203
Unrealised non-hedge derivatives 29 499
Adjusted operating profit 631 702
Headline earnings
The net profit has been adjusted by the
following to
arrive at headline earnings:
Net profit (loss) 253 (70)
Amortisation of goodwill 48 54
Impairment of mining assets 8 -
Profit on disposal of assets and
subsidiaries (36) (7)
Current and deferred taxation on
exceptional items 3 1 1
Headline earnings (loss) 274 (22)
Unrealised non-hedge derivatives and fair
value
gains (losses) on interest rate swaps 5 514
Deferred tax on unrealised non-hedge
derivatives and fair
3 1 (170)
value gains (losses) on interest rate
swaps
Adjusted headline earnings 280 322
Earnings (loss) per ordinary share (cents)
- Basic 96 (28)
- Diluted 96 (28)
- Headline 104 (9)
- Adjusted headline 106 127
Dividends
- Rm
- cents per share
Quarter Nine months Nine months
ended ended ended
September September September
2003 2004 2003
SA Rand million Unaudited Unaudited Unaudited
Gold income 3,735 11,173 11,580
Cost of sales (2,821) (9,323) (8,638)
914 1,850 2,942
Non-hedge derivatives 390 (330) 665
Operating profit 1,304 1,520 3,607
Corporate administration and
other expenses (46) (265) (213)
Market development costs (29) (78) (94)
Exploration costs (68) (206) (215)
Interest receivable 56 219 191
Other net income (expenses) (31) (32) (130)
Finance costs (77) (385) (217)
Fair value gains (losses) on
interest rate swaps 7 (10) 7
Profit (loss) before exceptional
items 1,116 763 2,936
Amortisation of goodwill (54) (153) (168)
Impairment of mining assets (252) (8) (347)
Profit on disposal of assets and
subsidiaries 280 63 336
Profit (loss) on ordinary
activities before taxation 1,090 665 2,757
Taxation (334) (133) (938)
Profit (loss) on ordinary
activities after taxation 756 532 1,819
Minority interest (27) (101) (98)
729 431 1,721
Net profit (loss)
Adjusted operating profit
The operating profit has been
adjusted by the
following to arrive at adjusted
operating profit:
Operating profit 1,304 1,520 3,607
Unrealised non-hedge derivatives (300) 696 (304)
Adjusted operating profit 1,004 2,216 3,303
Headline earnings
The net profit has been adjusted
by the following to
arrive at headline earnings:
Net profit (loss) 729 431 1,721
Amortisation of goodwill 54 153 168
Impairment of mining assets 252 8 347
Profit on disposal of assets and
subsidiaries (280) (63) (336)
Current and deferred taxation on
exceptional items (81) 9 (106)
Headline earnings (loss) 674 538 1,794
Unrealised non-hedge derivatives
and fair value
gains (losses) on interest rate
swaps (307) 706 (311)
Deferred tax on unrealised
non-hedge derivatives and
130 (243) 145
value gains (losses) on interest
rate swaps
Adjusted headline earnings 497 1,001 1,628
Earnings (loss) per ordinary
share (cents)
- Basic 327 175 773
- Diluted 326 175 769
- Headline 303 218 805
- Adjusted headline 223 405 731
Dividends
- Rm 453 837
- cents per share 170 375
The results have been prepared in accordance with International Financial
Reporting Standards (IFRS).
Group income statement
Quarter Quarter
ended ended
September June
2004 2004
US Dollar million Notes Unaudited Unaudited
Gold income 653 563
Cost of sales 2 (572) (470)
81 93
Non-hedge derivatives 16 (67)
Operating profit 97 26
Corporate administration and other
expenses (13) (16)
Market development costs (5) (3)
Exploration costs (12) (11)
Interest receivable 10 11
Other net income (expenses) 2 (5)
Finance costs (20) (17)
Fair value gains (losses) on interest
rate swaps 3 (2)
Profit (loss) before exceptional items 62 (17)
Amortisation of goodwill (7) (8)
Impairment of mining assets (1) -
Profit on disposal of assets and
subsidiaries 5 -
Profit (loss) on ordinary activities
before taxation 59 (25)
Taxation 3 (13) 15
Profit (loss) on ordinary activities
after taxation 46 (10)
Minority interest (6) (2)
Net profit (loss) 40 (12)
Adjusted operating profit
The operating profit has been adjusted by
the following to
arrive at adjusted operating profit:
Operating profit 97 26
Unrealised non-hedge derivatives 1 82
Adjusted operating profit 98 108
Headline earnings
The net profit has been adjusted by the
following to arrive
at headline earnings:
Net profit (loss) 40 (12)
Amortisation of goodwill 7 8
Impairment of mining assets 1 -
Profit on disposal of assets and
subsidiaries (5) -
Current and deferred taxation on
exceptional items 3 1 (1)
Headline earnings (loss) 44 (5)
Unrealised non-hedge derivatives and fair
value gains
(losses) on interest rate swaps (2) 84
Deferred tax on unrealised non-hedge
derivatives and fair value
3 1 (28)
gains (losses) on interest rate swaps
Adjusted headline earnings 43 51
Earnings (loss) per ordinary share (cents)
- Basic 15 (5)
- Diluted 15 (5)
- Headline 17 (2)
- Adjusted headline 16 20
Dividends
- $m
- cents per share
Quarter Nine months Nine months
ended ended ended
September September September
2003 2004 2003
US Dollar million Unaudited Unaudited Unaudited
Gold income 505 1,704 1,482
Cost of sales (381) (1,423) (1,107)
124 281 375
Non-hedge derivatives 52 (51) 88
Operating profit 176 230 463
Corp
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