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ANG
ANANO
Anglogold Ashanti Limited - Report To Shareholders For The Quarter And Year
Ended 31 December 2005
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): AADA
Euronext Paris: VA
Euronext Brussels: ANG
REPORT TO SHAREHOLDERS FOR THE QUARTER AND YEAR ENDED 31 DECEMBER 2005
Group results for the quarter ...
* Gold production down 3% to 1.494Moz, primarily due to anticipated declines at
Geita and Sunrise Dam.
* Price received up 10% to $476/oz.
* South African total cash costs 5% lower at R56,198/kg ($268/oz) due to
excellent cost management.
* Total cash costs down 2% to $278/oz.
* Adjusted headline earnings up to $41m as a result of solid production, lower
total cash costs and improved price received.
...and for the year
* Gold production increased 6% to 6.166Moz.
* Total cash costs up 6%, mainly due to strong operating currencies.
* Adjusted headline earnings decreased to $200m.
* Final dividend declared at 62 South African cents per share or 10 US cents
per share, resulting in a total dividend of 232 South African cents or 35 US
cents per share.
Quarter
ended ended
Dec Sept
2005 2005
Restated
SA rand/Metric
Operating review
Gold
Produced - kg / oz (000) 46,460 47,723
Price received(1) - R/kg / $/oz 99,780 90,440
Total cash costs - R/kg / $/oz 58,367 59,453
Total production costs - R/kg / $/oz 82,873 78,082
Financial review
(Gross loss) gross profit - R / $ million (340) 243
Gross profit adjusted
for the effect of unrealised non-
hedge derivatives(2) - R / $ million 870 678
(Loss) profit attributable to
equity
shareholders - R / $ million (1,463) (415)
Headline (loss) earnings - R / $ million (1,097) (390)
Headline earnings before unrealised
non-hedge derivatives, fair value
gain (loss) on convertible bond
and interest rate swaps(3) - R / $ million 250 144
Capital expenditure - R / $ million 1,279 1,385
(Loss) earnings per ordinary share - cents/share
Basic (552) (157)
Diluted (551) (156)
Headline (414) (147)
Headline earnings before unrealised
non-hedge derivatives, fair value
gain (loss) on convertible bond
and interest rate swaps(3) - cents/share 94 52
Dividends - cents/share 62
Year
ended ended
Dec Dec
2005 2004
Restated
SA rand/Metric
Operating review
Gold
Produced - kg / oz (000) 191,783 181,311
Price received(1) - R/kg / $/oz 89,819 81,051
Total cash costs - R/kg / $/oz 57,465 54,276
Total production costs - R/kg / $/oz 76,495 68,221
Financial review
(Gross loss) gross profit - R / $ million 1,088 1,697
Gross profit adjusted
for the effect of unrealised non-
hedge derivatives(2) - R / $ million 2,988 2,844
(Loss) profit attributable to
equity
shareholders - R / $ million (1,262) 728
Headline (loss) earnings - R / $ million (723) 937
Headline earnings before
unrealised
non-hedge derivatives, fair value
gain (loss) on convertible bond
and interest rate swaps(3) - R / $ million 1,265 1,691
Capital expenditure - R / $ million 4,596 3,764
(Loss) earnings per ordinary share- cents/share
Basic (477) 290
Diluted (477) 289
Headline (273) 373
Headline earnings before
unrealised
non-hedge derivatives, fair value
gain (loss) on convertible bond
and interest rate swaps(3) - cents/share 478 673
Dividends - cents/share 232 350
Quarter
ended ended
Dec Sept
2005 2005
Restated
US dollar/Imperial
Operating review
Gold
Produced - kg / oz (000) 1,494 1,534
Price received(1) - R/kg / $/oz 476 433
Total cash costs - R/kg / $/oz 278 284
Total production costs - R/kg / $/oz 395 373
Financial review
(Gross loss) gross profit - R / $ million (57) 29
Gross profit adjusted
for the effect of unrealised non-
hedge derivatives(2) - R / $ million 134 105
(Loss) profit attributable to equity
shareholders - R / $ million (227) (73)
Headline (loss) earnings - R / $ million (171) (69)
Headline earnings before unrealised
non-hedge derivatives, fair value
gain (loss) on convertible bond
and interest rate swaps(3) - R / $ million 41 22
Capital expenditure - R / $ million 196 215
(Loss) earnings per ordinary share - cents/share
Basic (86) (28)
Diluted (86) (28)
Headline (65) (26)
Headline earnings before unrealised
non-hedge derivatives, fair value
gain (loss) on convertible bond
and interest rate swaps(3) - cents/share 15 8
Dividends - cents/share 10
Year
ended ended
Dec Dec
2005 2004
Restated
US dollar/Imperial
Operating review
Gold
Produced - kg / oz (000) 6,166 5,829
Price received(1) - R/kg / $/oz 439 394
Total cash costs - R/kg / $/oz 281 264
Total production costs - R/kg / $/oz 374 332
Financial review
(Gross loss) gross profit - R / $ million 183 243
Gross profit adjusted
for the effect of unrealised non-
hedge derivatives(2) - R / $ million 469 441
(Loss) profit attributable to equity
shareholders - R / $ million (183) 108
Headline (loss) earnings - R / $ million (98) 141
Headline earnings before unrealised
non-hedge derivatives, fair value
gain (loss) on convertible bond
and interest rate swaps(3) - R / $ million 200 271
Capital expenditure - R / $ million 722 585
(Loss) earnings per ordinary share - cents/share
Basic (69) 43
Diluted (69) 43
Headline (37) 56
Headline earnings before unrealised
non-hedge derivatives, fair value
gain (loss) on convertible bond
and interest rate swaps(3) - cents/share 76 108
Dividends - cents/share 35 56
Notes: 1. Price received includes realised non-hedge derivatives.
2. Refer to note 8 of Notes for the definition.
3. Refer to note 7 of Notes 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 2005
Price received(1) Production
% %
$/oz Variance(4) oz (000) Variance(4)
Great Noligwa 488 8 170 -
Mponeng 486 7 143 13
TauTona 486 8 128 3
Kopanang 488 8 118 (6)
AngloGold Ashanti Mineracao 451 7 66 2
Sunrise Dam 515 15 92 (9)
Morila(5) 483 9 58 (16)
Cerro Vanguardia(5) 432 8 51 (2)
Cripple Creek & Victor 399 4 85 (8)
Navachab 482 10 22 5
Sadiola(5) 485 10 43 (2)
Obuasi 457 11 100 2
Geita 503 24 120 (12)
Serra Grande(5) 479 15 24 -
Yatela(5) 487 11 31 48
Siguiri(5) 460 11 62 2
Tau Lekoa 488 8 61 (14)
Savuka 487 8 25 (31)
Iduapriem(5) 457 11 44 -
Bibiani 469 9 25 (11)
Other 26 8
AngloGold Ashanti 476 10 1,494 (3)
Total cash costs Cash gross profit(2)
% %
$/oz Variance(4) $m Variance(4)
Great Noligwa 240 (11) 42 56
Mponeng 247 (9) 32 68
TauTona 248 (4) 29 38
Kopanang 263 4 25 32
AngloGold Ashanti Mineracao 190 10 15 -
Sunrise Dam 231 (28) 14 17
Morila(5) 227 17 14 (18)
Cerro Vanguardia(5) 173 (14) 14 17
Cripple Creek & Victor 239 3 13 (13)
Navachab 259 (3) 12 140
Sadiola(5) 284 18 10 11
Obuasi 357 5 9 125
Geita 326 (8) 8 11
Serra Grande(5) 174 9 8 60
Yatela(5) 208 (27) 8 167
Siguiri(5) 341 10 8 14
Tau Lekoa 441 18 3 -
Savuka 297 (22) 1 -
Iduapriem(5) 397 8 (1) (200)
Bibiani 334 8 (4) -
Other - (2) 7 (59)
AngloGold Ashanti 278 2 267 21
Gross profit (loss)
adjusted for the
effect of
unrealised non-
hedge derivatives(3)
%
$m Variance(4)
Great Noligwa 25 19
Mponeng 25 178
TauTona 13 8
Kopanang 18 29
AngloGold Ashanti Mineracao 12 -
Sunrise Dam 7 40
Morila(5) 8 14
Cerro Vanguardia(5) 9 80
Cripple Creek & Victor 4 -
Navachab 7 75
Sadiola(5) 7 -
Obuasi (5) -
Geita 7 800
Serra Grande(5) 6 50
Yatela(5) 6 200
Siguiri(5) 1 -
Tau Lekoa (5) (150)
Savuka 1 -
Iduapriem(5) (5) (150)
Bibiani (6) (50)
Other (1) (109)
AngloGold Ashanti 134 28
1 Price received includes realised non-hedge derivatives.
2 Cash gross profit is gross profit adjusted for the effect of unrealised
non-hedge derivatives plus amortisation of tangible and intangible assets,
less non-cash revenues.
3 Refer to note 8 of Notes for the definition.
4 Variance Dec ember 2005 quarter on September 2005 quarter - increase
(decrease).
5 Attributable .
Rounding of figures may result in computational discrepancies.
Financial and operating review
OVERVIEW FOR THE QUARTER AND YEAR
The December quarter was marked by a steady operational performance, with
production down slightly to 1.494Moz, and excellent cost control, with total
cash costs 2% lower at $278/oz. Together with good participation in the gold
price rally, this translated into considerably improved adjusted headline
earnings, up 86% to $41m from the restated $22m reported for the third quarter
of 2005.
Furthermore, the adjusted headline earnings of $41m are after deducting three
significant and largely once-off charges. First, the full implementation of the
new IAS 16 standard this quarter required a reassessment of the useful lives of
the company"s fixed assets, which resulted in a $13m increase in the
depreciation charge. Second, revisions to rehabilitation cost estimates
required a $28m increase in these provisions. Finally, tax provisions for
Africa and South America were increased by $52m, although a $48m tax credit in
Ghana mostly offset this increase.
Operationally, the African assets reported generally solid performances,
including 2% production improvements at both Obuasi in Ghana and Siguiri in
Guinea, and a 48% production increase at Yatela to 31,000oz. As anticipated and
reported previously, production at Geita continued to decline this quarter to
120,000oz, where it is expected to remain for the duration of the cut-back of
the Nyankanga pit - likely until the third quarter of 2006. Total cash costs at
Geita, however, declined 8%, reflecting the ongoing benefit of the successful
transition to owner-mining, the full gains of which should be realised by
mid-year.
The South African operations reported a 1% decline in production to 669,000oz
after an expected 7% decrease at Kopanang and 13% lower production from Tau
Lekoa, where a restructuring plan is currently underway to yield a better
performance going forward. These declines partially counteracted the good
operational results at Mponeng, where production rose 12% and total cash costs
declined 9%, and at TauTona, where production was up 3% and total cash costs
were down 4%. A sustained focus on the cost savings initiatives highlighted
earlier in the year resulted in significantly improved South African total cash
costs of R56,198/kg, marking the eighth consecutive quarter of managing these
costs to around the R60,000/kg level.
In respect of the international operations, the Brazilian assets - AngloGold
Ashanti Mineracao and Serra Grande - reported production generally in line with
that of the previous quarter, although total cash costs increased by 10% and
9%, respectively, partly as a result of the significant appreciation over the
quarter of the Brazilian real. In Australia, production at Sunrise Dam declined
as expected to 92,000oz, as mining continues in the low- grade northern section
of the pit, where it will likely remain for the next nine months. Production at
Cripple Creek & Victor in the US decreased 8% due to a decline in heap leach
recoveries, while the high cost of diesel and other consumables resulted in a
3% increase in total cash costs to $239/oz.
For the year ended 31 December 2005, gold production was 6% higher at 6.166Moz,
largely attributable to the inclusion of a full year"s production from the
Ashanti assets, in addition to record performances from Sunrise Dam in the
first two quarters of the year and 28% and 17% production improvements at
Morila and Mponeng, respectively.
This overall increase was offset to some degree, however, by reduced production
from key South African assets including Great Noligwa and TauTona.
In the effort to mitigate the effects of ongoing cost pressures, including the
higher oil price, generally increasing cost of consumables and strong local
currencies, the company announced earlier in the year a stringent savings plan
designed to eliminate $110m in costs. The total cost-saving realised for 2005,
at $160m, was well in excess of this target, with the bulk of these derived
from the South African operations. The consequence of this intervention has
been to limit total cash cost escalation to 6% for the year, to $281/oz.
In 2005, the company also achieved a significant decrease in the fatality
frequency rate, down 26% year-on-year. While the LTIF rate regressed by 3% to
6.75 per million man hours worked, this should be compared with the
international benchmark of 6.
Four operations were lost time injury-free for the fourth quarter and Cripple
Creek & Victor has now achieved 25 months without a lost-time injury.
A dividend of 62 South African cents (10 US cents) per share has been declared
for the six months ended 31 December 2005. This represents a similar dividend
payout level to adjusted headline earnings, as per the interim year
declaration, resulting in a total dividend for the year of 232 South African
cents (35 US cents) per share. Given that AngloGold Ashanti is in its
highest-ever capital expenditure phase, it will continue to manage capital
expenditure in line with profitability and cash flow, and its approach to the
dividend on the basis of prudent financial management.
Looking ahead, production for the first quarter is estimated to be 1.4Moz at an
average total cash cost of $311/oz, assuming the following exchange rates:
$/R6.25, A$/$0.76, BRL/$2.29 and Argentinean peso/$2.96. Production is forecast
to be down quarter-on-quarter primarily due to a reduced number of production
shifts in the South Africa region (69 production days in the first quarter of
2006 as compared to 76 in the prior quarter). Capital expenditure is estimated
at $234m and will be managed in line with profitability and cash flow.
The table below provides guidance for the year, in respect of forecast ounces,
cash costs and capital expenditure. In 2006, AngloGold Ashanti expects
production to decline marginally to within a range of 5.9Moz to 6.1Moz, as
Bibiani phases into a tailings only operation in combination with the forecast
closure of Savuka. Total cash costs are anticipated to be between $285/oz and
$293/oz, based on the following exchange rate assumptions: $/R6.50, A$/$0.76,
BRL/$2.40 and Argentinean peso/$2.96. Capital expenditure for the year is
estimated to be between $786m and $818m and will be managed in line with
profitability and cash flow. The depreciation and amortisation charge for 2006
is estimated to be approximately $577m.
Based on current business planning, in 2007 AngloGold Ashanti expects its gold
production to increase to between 6.3Moz and 6.5Moz. This growth will be driven
primarily by forecast increased production at the following operations: in
South Africa, Moab production is expected to increase by approximately 80% in
line with the development plan; in Australia, Sunrise Dam production should
increase by approximately 25% as the higher grade GQ lobe is accessed; in
Brazil at AngloGold Ashanti Mineracao, production is anticipated to increase by
almost 40% as a consequence of the Cuiaba deepening project; in Ghana, both
Iduapriem and Obuasi should see planned increases in production of between 10%
and 15% respectively; and in Tanzania at the Geita mine, production is forecast
to rise by over 50% due to mining in the higher grade Nyankanga Cut 4.
These forecast increases in production offset planned reduced production at Tau
Lekoa in South Africa, Bibiani in Ghana, Yatela in Mali and Cripple Creek &
Victor in the United States.
OPERATIONAL FORECAST FOR 2006
Forecast
Production Expected Capital
Operation Ounces Total Cash Cost Expenditure
(000) $/oz* $m**
SOUTH AFRICA
Great Noligwa 651 - 677 258 - 268 47 - 49
Kopanang 457 - 475 294 - 306 36 - 38
Tau Lekoa 207 - 215 382 - 398 12
Moab 48 - 50 654 - 680 82 - 85
Vaal River surface 93 - 97 325 - 339 11 - 12
Mponeng 495 - 515 278 - 290 46 - 48
Savuka 14 - 15 613 - 639 -
TauTona 491 - 511 267 - 277 73 - 75
ARGENTINA
Cerro Vanguardia 207 - 215 181 - 189 14 - 16
AUSTRALIA
Sunrise Dam 451 - 469 268 - 278 27 - 28
Boddington - - 81 - 84***
BRAZIL
AngloGold Ashanti
Mineracao 234 - 244 164 - 170 98 - 103
Serra Grande 93 - 97 179 - 187 12
GHANA
Bibiani 54 - 56 297 - 309 0-1
Iduapriem 185 - 193 302 - 314 14 - 15
Obuasi 407 - 423 319 - 332 88 - 92
GUINEA
Siguiri 250 - 260 308 - 320 21 - 22
MALI
Morila 215 - 223 274 - 286 1
Sadiola 185 - 193 302 - 314 7
Yatela 118 - 122 249 - 259 -
NAMIBIA
Navachab 81 - 85 301 - 313 1
TANZANIA
Geita 562 - 585 297 - 309 86 - 89
USA
Cripple Creek & Victor 323 - 337 238 - 248 12
TOTAL 5,823 - 6,058 285 - 293 786 - 818
* Based on the following exchange rate assumptions: $/R6.50, A$/$0.76,
BRL/$2.40 and Argentinean peso/$2.96.
** Capital expenditure is managed in line with profitability and cash flow,
and may fluctuate accordingly.
*** Subject to approval of the Boddington Joint Venture project by the
partners.
Review of the gold market
The final quarter of the year saw the gold price surge to its highest price in
twenty-five years on the back of new investor and speculator buying,
particularly on the Tokyo Commodities Exchange.
The average spot price for the quarter of $485/oz was $46/oz, or over 10%,
higher than the price for the previous quarter. The closing price for the
quarter of $517/oz was $50/oz higher than the opening price for the quarter.
Above all, however, the most striking aspect of the markets behaviour in the
quarter was the range of $86/oz between the low of $455/oz early in the
quarter, and high of $541/oz seen during December. This is the biggest price
range in one quarter seen in the gold market in over twenty years. The gold
price has now risen for five years in succession, a phenomenon not seen since
the deregulation of the gold market in the developed markets in the early
1970"s.
GOLD
The powerful performance of the gold price during the final quarter of the year
was driven entirely by investor and speculator interest in the metal, and the
physical market for the metal played little role.
Although investors have been critical to the rising price of gold the extent of
their role in the price rise during the past quarter was more obvious than ever
before. Sustained long positions in gold on the New York Comex were joined by
very active interest on the Tokyo Commodities Exchange (Tocom) during November
and December, and by renewed buying of gold through the exchange traded funds
in gold, particularly street TRACKS Gold, listed on the New York Comex. The
Tocom and ETF purchases seem to have had the most visible impact on the spot
price.
Buying of gold by Japanese investors on Tocom coincided with a sharp and sudden
decline in the yen against the US dollar from early November, and it would be
fair to conclude that Japanese buyers were influenced towards gold as a hedge
against currency devaluation. The November/ December rally in the spot gold
price was due particularly to buying on Tocom. The second and quite different
area of interest in gold was the buying of gold through the ETF"s. After a lull
in ETF holdings during mid-2005, there was a strong return of interest, with
over 70t of gold (over 2.5Moz) purchased during the last couple of months of
2005. More than 40t of further ETF gold investment has taken place in January
2006, and the combined gold ETF"s globally today hold some 400t, or 13Moz of
gold, equal to over $7bn worth of the metal.
By contrast, the interest in gold on the New York Comex which has been the
driving force in the gold price for the past four years exercised significantly
less influence on the gold price during the period under review. The net long
position in gold on the Comex remained stable at 18-19Moz for most of the final
quarter of the year, and Comex trading contributed little to the strong moves
in the spot gold price during these past few months.
The spot gold price has risen again during the first few weeks of the new year.
Sentiment towards gold is helped by renewed speculation about possible central
bank reserve asset diversification which could include gold (signalled
specifically by monetary authorities in China and Russia during the last
quarter of 2005), and by ongoing concerns over the possibility of renewed
inflation on the back of higher energy prices in particular.
The gold price has performed well technically, and the positive momentum of
recent years has attracted investors on the strength of its own success story.
Market analysts" expectations of renewed US dollar weakness during this year is
being taken as supportive of the gold price, notwithstanding a delinking of the
influence of the dollar on the gold market for much of the past six months.
In the broader market circumstances, sentiment towards gold has also been
assisted by the general strength in commodity prices and by the very
significant volume of investment funds seeking new assets.
In the physical market for gold, the sharp price rise in the final quarter of
the year inevitably affected gold demand negatively. After a very healthy first
half demand for gold in jewellery, where offtake reached 1,485t and Indian
demand was up by 50% year on year, the second half of 2005 saw jewellery
offtake slip to 1,255t, with reduced offtake particularly in India and Europe.
Industry analysts forecast a further fall in demand in the first half of 2006.
Overall, demand for gold in jewellery rose by 5% for the year as a whole.
The weakness in India towards the end of the year was offset by continuing
robust demand for gold in the Middle East and Turkey, and by growth of 10% for
the year in China. Demand for gold in other fabrication was up by 4%. However,
the other important element in the net market for gold, producer dehedging,
fell sharply by 54% to only 195t in 2005. Regarding supply of gold, mine
production for 2005 was slightly higher than in 2004, but net official sales of
gold increased by some 40% to 663t for 2005, leaving the market in over-supply,
certainly in the second half of the year.
CURRENCIES
Over the past year, the strength of the US currency has confounded the
forecasts of most analysts and commentators, who saw the dollar weakening
continuously during 2005 to between $1.35 and $1.50 to the euro. During the
final quarter of the year, the dollar strengthened to almost $1.16 to the euro,
its strongest rate against the European currency in two years. However, from
that point, the market has corrected somewhat and the dollar today trades
between $1.20 and $1.22 to the euro. The strength of the US currency during the
latter part of the year had no impact on the gold price as investors and
speculators appeared to focus on the gold market on its own terms, rather than
trading in response to US dollar movements as they had done over the past four
years.
Notwithstanding the dollar"s bounce-back against the euro during 2005, the
unfavourable circumstances in the US economy remain, and analysts are again
calling for a weaker dollar during the year ahead. The dollar was aided
significantly during 2005 by the effects of the Homeland Investment Act which
led to fund flows back into the USA particularly during the latter half of the
year, but this circumstance will not repeat in 2006. Instead, the dollar will
be exposed to the US current account deficit which continues to rise and to a
fiscal deficit in the US which remains to be addressed.
The rand showed mixed signals during the quarter, opening and closing at around
the same exchange rate of R6.31 to the dollar, but trading to a weak point of
R6.80. The average rate of R6.53/$1 is little changed from the previous
quarter. However, since the end of the quarter, the currency has strengthened
by over 5% to trade as strong as R5.95 to the dollar. This has significantly
reduced the benefit to South African producers of the stronger US dollar gold
spot price. Even with the US dollar gold price currently at double the level at
which it traded in late 2001, the rand spot price of gold at around R105,000/kg
remains below the rand gold price at the end of 2001.
The market anticipates a further year of good economic growth in South Africa
in 2006, and foreign investment interest in the South African economy remains
particularly strong. In addition, the country continues to benefit from
sustained price increases in metals and commodities. It seems likely that the
rand will remain around its current trading range in 2006.
HEDGING
As at 31 December 2005, the net delta hedge position of AngloGold Ashanti was
10.84Moz or 337t, valued at the spot gold price at the end of the quarter of
$517/oz. This net delta position reflects an increase of some 160,000oz or 5t
in the net delta size of the AngloGold Ashanti hedge compared with the position
at the end of the previous quarter. This increase is due entirely to a higher
delta in open options positions valued against a quarter-end spot price which
was higher by $51/oz than the closing spot price at the end of September 2005.
The marked-to-market value of the hedge position as at 31 December 2005 was
negative $1.941bn. Again, the increase in the negative value of the hedge was
due entirely to the increase of the closing spot price by $51/oz quarter on
quarter. Had the spot price of gold at the end of December 2005 remained
unchanged from the price of $465/oz at the end of September, the hedge would
have reduced in size to 10.29Moz or 320t, with a marked-to-market value of
$1.4bn.
The price received by the company for the quarter under review was $476/oz,
compared with an average spot price for the period of $485/oz. The company
continues to manage its hedge positions actively, and to reduce overall levels
of pricing commitments in respect of future gold production by the company.
Hedge position
As at 31 December 2005, 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 10.84Moz or 337t (at 30 September 2005:
10.68Moz or 332t).
The marked-to-market value of all hedge transactions making up the hedge
positions was a negative $1.941bn (negative R12.24bn) as at 31 December 2005
(as at 30 September 2005:
negative $1.349bn or R8.59bn). This value at 31 December 2005 was based on a
gold price of $517.00/oz, exchange rates of R/$6.305 and A$/$0.7342 and the
prevailing market interest rates and volatilities at that date.
As at 9 February 2006, the marked-to-market value of the hedge book was a
negative $2.425bn (negative R14.99bn), based on a gold price of $557.75/oz and
exchange rates of R/$6.18 and A$/$0.7398 and the prevailing market interest
rates and volatilities at the time.
These marked-to-market valuations are not predictive of the future value of the
hedge position, nor of future impact on the revenue of the company. The
valuation represents the cost of buying all hedge contracts at the time of
valuation, at market prices and rates available at the time.
Year 2006 2007
DOLLAR GOLD
Forward contracts Amount (kg) 8,592 25,469
US$/oz $279 $357
Put options purchased Amount (kg) 8,592 1,455
US$/oz $345 $292
Put options sold Amount (kg) 6,532
US$/oz $389
Call options purchased Amount (kg) 12,144 6,357
US$/oz $346 $344
Call options sold Amount (kg) 32,157 32,544
US$/oz $386 $387
RAND GOLD
Forward contracts Amount (kg) 2,449
Rand per kg R97,520
Put options purchased Amount (kg) 1,875
Rand per kg R93,602
Put options sold Amount (kg) 2,333
Rand per kg R93,713
Call options purchased Amount (kg)
Rand per kg
Call options sold Amount (kg) 3,306 311
Rand per kg R102,447 R108,123
A DOLLAR GOLD
Forward contracts Amount (kg) *3,110 6,843
A$ per oz A$625 A$640
Put options purchased Amount (kg)
A$ per oz
Put options sold Amount (kg)
A$ per oz
Call options purchased Amount (kg) 3,110 3,732
A$ per oz A$673 A$668
Call options sold Amount (kg)
A$ per oz
** Total net gold: Delta (kg) 23,848 56,229
Delta (oz) 776,730 1,807,802
Year 2008 2009
DOLLAR GOLD
Forward contracts Amount (kg) 30,076 26,288
US$/oz $365 $380
Put options purchased Amount (kg)
US$/oz
Put options sold Amount (kg) 855 1,882
US$/oz $390 $400
Call options purchased Amount (kg)
US$/oz
Call options sold Amount (kg) 32,500 31,194
US$/oz $393 $418
RAND GOLD
Forward contracts Amount (kg) 933
Rand per kg R116,335
Put options purchased Amount (kg)
Rand per kg
Put options sold Amount (kg)
Rand per kg
Call options purchased Amount (kg)
Rand per kg
Call options sold Amount (kg) 2,986
Rand per kg R202,054
A DOLLAR GOLD
Forward contracts Amount (kg) 2,177 3,390
A$ per oz A$665 A$656
Put options purchased Amount (kg)
A$ per oz
Put options sold Amount (kg)
A$ per oz
Call options purchased Amount (kg) 3,110 1,244
A$ per oz A$680 A$694
Call options sold Amount (kg)
A$ per oz
** Total net gold: Delta (kg) 59,740 57,703
Delta (oz) 1,920,683 1,855,192
Year 2010 2011-2015 Total
DOLLAR GOLD
Forward contracts Amount (kg) 16,328 37,239 143,991
US$/oz $382 $411 $375
Put options
purchased Amount (kg) 10,047
US$/oz $337
Put options sold Amount (kg) 1,882 7,527 18,678
US$/oz $410 $435 $411
Call options
purchased Amount (kg) 18,501
US$/oz $345
Call options sold Amount (kg) 28,054 72,911 229,359
US$/oz $429 $497 $432
RAND GOLD
Forward contracts Amount (kg) 3,382
Rand per kg R102,711
Put options
purchased Amount (kg) 1,875
Rand per kg R93,602
Put options sold Amount (kg) 2,333
Rand per kg R93,713
Call options
purchased Amount (kg)
Rand per kg
Call options sold Amount (kg) 2,986 2,986 12,575
Rand per kg R216,522 R230,990 R183,851
A DOLLAR GOLD
Forward contracts Amount (kg) 3,110 12,410
A$ per oz A$684 A$664
Put options
purchased Amount (kg)
A$ per oz
Put options sold Amount (kg)
A$ per oz
Call options
purchased Amount (kg) 3,110 14,308
A$ per oz A$712 A$683
Call options sold Amount (kg)
A$ per oz
** Total net gold: Delta (kg) 42,074 97,482 337,076
Delta (oz) 1,352,709 3,134,115 10,837,229
* Long position.
** The Delta of the hedge position indicated above is the equivalent gold
position that would have the same marked-to-market sensitivity for a small
change in the gold price. This is calculated using the Black-Scholes
option formula with the ruling market prices, interest rates and
volatilities as at 31 December 2005.
Rounding of figures may result in computational discrepancies.
Year 2006 2007
DOLLAR SILVER
Forward contracts Amount (kg)
$ per oz
Put options purchased Amount (kg) 43,545 43,545
$ per oz $7.11 $7.40
Put options sold Amount (kg) 43,545 43,545
$ per oz $6.02 $5.93
Call options purchased Amount (kg)
$ per oz
Call options sold Amount (kg) 43,545 43,545
$ per oz $8.11 $8.40
Year 2008 2009
DOLLAR SILVER
Forward contracts Amount (kg)
$ per oz
Put options purchased Amount (kg) 43,545
$ per oz $7.66
Put options sold Amount (kg) 43,545
$ per oz $6.19
Call options purchased Amount (kg)
$ per oz
Call options sold Amount (kg) 43,545
$ per oz $8.64
Year 2010 2011-2015 Total
DOLLAR SILVER
Forward contracts Amount (kg)
$ per oz
Put options purchased Amount (kg) 130,635
$ per oz $7.39
Put options sold Amount (kg) 130,635
$ per oz $6.05
Call options purchased Amount (kg)
$ per oz
Call options sold Amount (kg) 130,635
$ per oz $8.39
The following table indicates the group"s currency hedge position at
31 December 2005
Year 2006 2007 2008 2009
RAND DOLLAR (000)
Forward contracts Amount ($)
US $ / R
Put options purchased Amount ($) 60,000
US$/R R6.89
Put options sold Amount ($) 60,000
US$/R R6.56
Call options purchased Amount ($)
US $ / R
Call options sold Amount ($) 60,000
US$/R R7.28
A DOLLAR (000)
Forward contracts Amount ($) 59,149
A$/US$ A$0.75
Put options purchased Amount ($) 80,000
A$/US$ A$0.73
Put options sold Amount ($) 80,000
A$/US$ A$0.76
Call options purchased Amount ($)
A$/US$
Call options sold Amount ($) 130,000
A$/US$ A$0.72
BRAZILIAN REAL (000)
Forward contracts Amount ($) 24,000 4,000
US$/BRL BRL3.18 BRL3.31
Put options purchased Amount ($)
US$/BRL
Put options sold Amount ($)
US$/BRL
Call options purchased Amount ($)
US$/BRL
Call options sold Amount ($) 20,000
US$/BRL BRL3.29
Year 2010 2011-2015 Total
RAND DOLLAR (000)
Forward contracts Amount ($)
US $ / R
Put options purchased Amount ($) 60,000
US$/R R6.89
Put options sold Amount ($) 60,000
US$/R R6.56
Call options purchased Amount ($)
US $ / R
Call options sold Amount ($) 60,000
US$/R R7.28
A DOLLAR (000)
Forward contracts Amount ($) 59,149
A$/US$ A$0.75
Put options purchased Amount ($) 80,000
A$/US$ A$0.73
Put options sold Amount ($) 80,000
A$/US$ A$0.76
Call options purchased Amount ($)
A$/US$
Call options sold Amount ($) 130,000
A$/US$ A$0.72
BRAZILIAN REAL (000)
Forward contracts Amount ($) 28,000
US$/BRL BRL3.20
Put options purchased Amount ($)
US$/BRL
Put options sold Amount ($)
US$/BRL
Call options purchased Amount ($)
US$/BRL
Call options sold Amount ($) 20,000
US$/BRL BRL3.29
Rounding of figures may result in computational discrepancies.
Exploration
Total exploration expenditure amounted to $19m ($11m expensed, $8m capitalised)
during the fourth quarter, compared to $25m ($12m expensed, $13m capitalised)
in the previous quarter.
At Morila in Mali, three deflections were drilled from each of two primary
holes, which generally confirmed the high grades previously intersected on the
Samacline target. A regional drilling programme to test structural and
geochemical targets and consisting of 14 holes, has commenced.
At Siguiri, in Guinea, resource delineation drilling continued at the Kintinian
prospect, located 5km from the plant. Mineralisation has been identified as
open-ended to the north west and south east of the prospect and delineation
drilling in 2006 is targeting the addition of at least 1Moz in new resources at
Siguiri.
In Tanzania at Geita, drilling confirmed the down- dip extension of the North
East Extension Zone at Geita Hill. Infill-drilling has commenced in the far
western corner of the licence area, as has testing of the potential
mineralisation continuity between Ridge 8, Star and Comet.
In Brazil, ongoing drilling at Corrego do Sitio concentrated on the northern
Laranjeiras orebody, where promising down-plunge continuity has been
established. Underground development at Cachorro Bravo has confirmed down-dip
continuity of the mineralisation at consistent grades and thickness.
Greenfields exploration activities continued in the fourth quarter in
Australia, Tanzania, Alaska, China, Mongolia, Colombia, Russia and the DRC,
with an expensed expenditure of $10m.
At the Kimin project in the DRC, drilling in the Adidi/D7 Kanga (Mongbwalu)
sector continues to encounter significant gold mineralisation. An accelerated
follow-up drill programme in 2006 is targeting the addition of 3Moz of resource
(in the inferred category) at Adidi/D7 Kanga.
The definition of additional drill targets, with the potential to host further
gold resources, in both the Mongbwalu area and elsewhere within the Kilo
greenstone belt will be assisted by the completion of an airborne geophysical
survey around the end of the first quarter 2006.
In the USA in Alaska, preliminary grade indications at the Lost Mine South
project are approximately 10g/t over a 3 metres width and 20g/t over narrower
widths at the Terra project. Drilling is planned to begin at the Lost Mine
South project in the first quarter of 2006.
Exploration activities in Colombia continued to focus on regional
reconnaissance, drill target definition, permitting, and drill site preparation
in anticipation of the commencement of a drilling programme in early 2006.
In Australia, wide-spaced reverse circulation drilling at the Tropicana
Prospect has extended the strike length to over one kilometre.
Significant new intersections include 32 metres at 6.6g/t from 44 metres, and 9
metres at 6.3g/t from 33 metres. A geophysical survey, in addition to limited
drilling, has identified a parallel zone of mineralisation.
At the Rusty Nail prospect, geophysical surveying results were consistent with
existing soil samples. Limited follow-up of six existing prospects located
within a 30 kilometre radius of the Tropicana Prospect was completed during the
quarter.
In Mongolia, an epithermal vein system drill- tested at Elgen Uul in the south
eastern Gobi yielded low-grade gold intercepts. Testing of two further
epithermal targets in Mongolia is planned for 2006.
Ore Reserves Statement
GOLD
AngloGold Ashanti"s attributable Proved & Probable Ore Reserves amounted to
78.9Moz as at 31 December 2004 based on the requirements of the United States
Securities and Exchange Commission (SEC). In accordance with this requirement,
the company"s Ore Reserves were estimated using the three-year historical
average of gold prices of $375/oz, A$536/oz and R94,765/kg respectively.
AngloGold Ashanti reviews and updates its estimates of Ore Reserves annually
and publishes them in the first quarter of each year.
In accordance with the preferred position of the SEC, based on the estimated
average of gold price and exchange rates for the three years ended 31 December
2005, which yields gold prices of around $400/oz, A$556/oz and R86,808/kg,
AngloGold Ashanti"s Proved and Probable Ore Reserves have been determined to be
63.3Moz as at 31 December 2005. The reduction in the company"s Ore Reserves, as
compared to those at 31 December 2004, amounted to 15.6Moz, 7.0Moz of which is
due to depletion, 6.4Moz is due to the use of the lower rand gold price of
R86,808/kg and the remaining 2.2Moz reduction is due to geological model and
scope changes. These reductions in Proved and Probable Ore Reserves are
primarily at three of the South African mines, namely Moab Khotsong, Mponeng
and Tau Lekoa, for reasons detailed below:
* in the case of Moab Khotsong a reduction of 5.4Moz is due to:
the removal of 1.3Moz from the existing project as a result of a reduction in
the mine call factor, and
the removal of the "Moab Khotsong Phase 2 Project" (4.1Moz) following the use
of the lower rand gold price;
* in the case of Mponeng a reduction of 1.7Moz is due to:
the removal of 0.4Moz as a result of a reduction in the mine call factor, and
the removal of the "Mponeng below 120 level Ventersdorp Contact Reef Project"
(1.3Moz) following the use of the lower rand gold price; and
* in the case of Tau Lekoa, a reduction of 1.6Moz is primarily due to the use
of the lower rand gold price.
A sensitivity analysis has been carried out on the company"s Ore Reserves,
using gold prices that reflect more recent spot prices ($530/oz, A$700/oz and
R105,000/kg). This analysis, together with the anticipated reserve ounces
expected to be generated by the 2006 exploration programmes, indicates that the
current ore reserve position could be increased by some 9Moz, thereby more than
replacing depletion in 2006.
BY-PRODUCTS
A number of by-products will be recovered as a result of processing the gold
Ore Reserves.
These include:
* 22.66 million ounces of silver from Argentina
* 13,920 tonnes of uranium from South Africa
* 164,000 tonnes of copper from Australia *
* 110,000 tonnes of sulphur from Brazil
** Assumes that the Boddington Expansion Project is approved by the Joint
Venture partners.
Group income statement
Quarter Quarter Quarter
ended ended ended
December September December
2005 2005 2004
Restated Restated
SA Rand million Notes Unaudited Unaudited Unaudited
Revenue 2 4,478 4,332 4,265
Gold income 4,337 4,151 4,054
Cost of sales 3 (3,929) (3,748) (3,466)
Non-hedge derivatives (748) (161) (472)
Gross (loss) profit (340) 243 116
Corporate administration
and other expenses (99) (109) (66)
Market development costs (21) (21) (23)
Exploration costs (69) (81) (77)
Amortisation of intangible
assets - - (46)
Other net operating expenses (33) (43) (38)
Operating special items 4 (416) (38) 24
Operating (loss) profit (978) (49) (111)
Interest receivable 28 34 74
Exchange (loss) gain (36) 3 21
Fair value adjustment on
option component of
convertible bond (271) (135) 94
Finance costs and unwinding
of decommissioning
and restoration obligations (216) (166) (143)
Fair value gains (losses)
on interest rate swaps - - 20
Share of associates (loss)
profit (15) (6) 2
(Loss) profit before
taxation (1,487) (319) (44)
Taxation 5 109 (10) 317
(Loss) profit after
taxation from continuing
operations (1,378) (329) 273
Loss for the period from
discontinued operations 9 (56) (42) (16)
(Loss_ profit for the period (1,434) (372) 257
Allocated as follows
Equity shareholders of
parent (1,463) (415) 234
Minority interest 29 43 23
(1,434) (372) 257
Basic earnings (loss) per
ordinary share (cents)
(Loss) profit from
continuing operations(a) (531) (141) 95
Loss from discontinued
operations(a) (21) (16) (6)
(Loss) profit (552) (157) 88
Diluted earnings (loss) per
ordinary share (cents)
(Loss) profit from
continuing operations(b) (531) (141) 94
Loss from discontinued
operations(b) (21) (16) (6)
(Loss) profit(d) (552) (157) 88
Dividends(c)
- Rm
- cents per share
Year Year
ended ended
December December
2005 2004
Restated
SA Rand million Unaudited Unaudited
Revenue 17,388 15,592
Gold income 16,750 14,788
Cost of sales (14,713) (12,305)
Non-hedge derivatives (949) (786)
Gross (loss) profit 1,088 1,697
Corporate administration and other expenses (410) (331)
Market development costs (84) (100)
Exploration costs (288) (283)
Amortisation of intangible assets - (200)
Other net operating expenses (127) (69)
Operating special items (499) 80
Operating (loss) profit (320) 794
Interest receivable 155 318
Exchange (loss) gain (29) 25
Fair value adjustment on option component of
convertible bond (211) 160
Finance costs and unwinding of decommissioning
and restoration obligations (690) (563)
Fair value gains (losses) on interest rate swaps (5) 10
Share of associates (loss) profit (17) 1
(Loss) profit before taxation (1,117) 745
Taxation 220 179
(Loss) profit after taxation from continuing
operations (897) 924
Loss for the period from discontinued operations (219) (73)
(Loss_ profit for the period (1,116) 851
Allocated as follows
Equity shareholders of parent (1,262) 728
Minority interest 146 123
(1,116) 851
Basic earnings (loss) per ordinary share (cents)
(Loss) profit from continuing operations(a) (394) 319
Loss from discontinued operations(a) (83) (29)
(Loss) profit (477) 290
Diluted earnings (loss) per ordinary share (cents)
(Loss) profit from continuing operations(b) (394) 318
Loss from discontinued operations(b) (83) (29)
(Loss) profit(d) (477) 289
Dividends(c)
- Rm 614 926
- cents per share 232 350
a Calculated on the basic weighted average number of ordinary shares.
b Calculated on the diluted weighted average number of ordinary shares.
Group income statement
Quarter Quarter Quarter
ended ended ended
December September December
2005 2005 2004
Restated Restated
US Dollar million Notes Unaudited Unaudited Unaudited
Revenue 2 687 666 706
Gold income 665 638 672
Cost of sales 3 (602) (576) (575)
Non-hedge derivatives (120) (33) (93)
Gross (loss) profit (57) 29 4
Corporate administration
and other expenses (15) (17) (11)
Market development costs (3) (3) (4)
Exploration costs (11) (12) (13)
Amortisation of intangible
assets - - (8)
Other net operating expenses (6) (7) (7)
Operating special items 4 (64) (7) 4
Operating (loss) profit (155) (17) (34)
Interest receivable 4 5 12
Exchange (loss) gain (5) - 3
Fair value adjustment on
option component of
convertible bond (42) (21) 17
Finance costs and unwinding
of decommissioning
and restoration obligations (33) (26) (24)
Fair value gains (losses)
on interest rate swaps - - 3
Share of associates (loss)
profit (2) (1) -
(Loss) profit before
taxation (233) (58) (21)
Taxation 5 19 (2) 62
(Loss) profit after
taxation from continuing
operations (214) (60) 41
Loss for the period from
discontinued operations 9 (9) (7) (3)
(Loss) profit for the period (223) (67) 38
Allocated as follows
Equity shareholders of the
parent (227) (73) 35
Minority interest 5 7 4
(223) (67) 38
Basic earnings (loss) per
ordinary share (cents)
(Loss) profit from
continuing operations(a) (83) (25) 14
Loss from discontinued
operations(a) (3) (3) (1)
(Loss) profit (86) (28) 13
Diluted earnings (loss) per
ordinary share (cents)
(Loss) profit from
continuing operations(b) (83) (25) 14
Loss from discontinued
operations(b) (3) (3) (1)
(Loss) profit(d) (86) (28) 13
Dividends c
- $m
- cents per share
Year Year
ended ended
December December
2005 2004
Restated
US Dollar million Unaudited Unaudited
Revenue 2,730 2,434
Gold income 2,629 2,309
Cost of sales (2,311) (1,924)
Non-hedge derivatives (135) (142)
Gross (loss) profit 183 243
Corporate administration and other expenses (64) (51)
Market development costs (13) (15)
Exploration costs (45) (44)
Amortisation of intangible assets - (31)
Other net operating expenses (20) (12)
Operating special items (77) 12
Operating (loss) profit (36) 102
Interest receivable 25 49
Exchange (loss) gain (5) 4
Fair value adjustment on option component of
convertible bond (32) 27
Finance costs and unwinding of decommissioning
and restoration obligations (108) (87)
Fair value gains (losses) on interest rate swaps (1) 2
Share of associates (loss) profit (3) -
(Loss) profit before taxation (160) 97
Taxation 36 41
(Loss) profit after taxation from continuing
operations (124) 138
Loss for the period from discontinued operations (36) (11)
(Loss) profit for the period (160) 127
Allocated as follows
Equity shareholders of the parent (183) 108
Minority interest 23 19
(160) 127
Basic earnings (loss) per ordinary share (cents)
(Loss) profit from continuing operations(a) (56) 47
Loss from discontinued operations(a) (14) (4)
(Loss) profit (69) 43
Diluted earnings (loss) per ordinary share (cents)
(Loss) profit from continuing operations(b) (56) 47
Loss from discontinued operations(b) (14) (4)
(Loss) profit(d) (69) 43
Dividends c
- $m 95 148
- cents per share 35 56
a Calculated on the basic weighted average number of ordinary shares.
b Calculated on the diluted weighted average number of ordinary shares.
c Dividends are translated at actual rates on date of payment.
d The impact of the diluted earnings per share is anti-dilutive and therefore
equal to the basic earning per share.
Group balance sheet
As at As at As at
December September December
2005 2005 2004
Restated Restated
SA Rand million Notes Unaudited Unaudited Unaudited
ASSETS
Non-current assets
Tangible assets 37,464 37,164 33,239
Intangible assets 2,533 2,602 2,458
Investments in associates 223 238 43
Other investments 645 582 608
Inventories 1,182 767 202
Derivatives 243 311 1,055
Trade and other receivables 124 116 55
Deferred taxation 279 233 -
Other non-current assets 101 152 101
42,794 42,164 37,761
Current assets
Inventories 2,436 2,623 2,285
Trade and other receivables 1,589 1,502 1,700
Derivatives 4,280 3,162 2,767
Current portion of other
non-current assets 43 3 5
Cash restricted for use 52 86 148
Cash and cash equivalents 1,328 1,469 1,630
9,728 8,845 8,535
Non-current assets held for
sale 100 100 -
9,828 8,945 8,535
TOTAL ASSETS 52,622 51,110 46,296
EQUITY AND LIABILITIES
Share capital and premium 12 19,047 19,023 18,987
Retained earnings and other
reserves 13 (2,463) (360) (1,197)
Shareholders" equity 16,584 18,663 17,790
Minority interests 14 374 375 327
Total equity 16,958 19,038 18,117
Non-current liabilities
Borrowings 10,825 10,889 7,262
Environmental
rehabilitation and other
provisions 2,265 1,804 1,294
Provision for pension and
post-retirement benefits 1,249 1,017 1,112
Trade, other payables and
deferred income 87 64 21
Derivatives 2,460 2,096 3,033
Deferred taxation 7,353 7,954 7,653
Current liabilities 24,239 23,825 20,375
Trade, other payables and
deferred income 2,711 2,735 2,629
Current portion of
borrowings 1,190 991 1,800
Derivatives 6,814 4,218 3,007
Taxation 710 304 368
11,425 8,248 7,804
Total liabilities 35,664 32,072 28,179
TOTAL EQUITY AND LIABILITIES 52,622 51,110 46,296
Net asset value - cents per
share 6,401 7,191 6,850
Rounding of figures may result in computational discrepancies.
Group balance sheet
As at As at As at
December September December
2005 2005 2004
Restated Restated
US Dollar million Notes Unaudited Unaudited Unaudited
ASSETS
Non-current assets
Tangible assets 5,905 5,843 5,888
Intangible assets 399 409 435
Investments in associates 35 37 8
Other investments 102 91 107
Inventories 186 121 35
Derivatives 38 49 187
Trade and other receivables 20 18 10
Deferred taxation 44 37 -
Other non-current assets 16 24 18
6,745 6,629 6,688
Current assets
Inventories 384 412 406
Trade and other receivables 250 236 302
Derivatives 675 497 490
Current portion of other
non-current assets 7 - 1
Cash restricted for use 8 14 26
Cash and cash equivalents 209 231 289
1,533 1,391 1,514
Non-current assets held for
sale 16 16 -
1,549 1,406 1,514
TOTAL ASSETS 8,294 8,035 8,202
EQUITY AND LIABILITIES
Share capital and premium 12 3,002 2,991 3,364
Retained earnings and other
reserves 13 (388) (57) (213)
Shareholders" equity 2,614 2,934 3,151
Minority interests 14 59 59 58
Total equity 2,673 2,993 3,209
Non-current liabilities
Borrowings 1,706 1,712 1,286
Environmental
rehabilitation and other
provisions 356 284 230
Provision for pension and
post-retirement benefits 197 160 197
Trade, other payables and
deferred income 14 10 4
Derivatives 388 330 537
Deferred taxation 1,159 1,250 1,356
3,820 3,746 3,610
Current liabilities
Trade, other payables and
deferred income 427 430 466
Current portion of
borrowings 188 156 319
Derivatives 1,074 663 533
Taxation 112 48 65
1,801 1,297 1,383
5,621 5,042 4,993
Total liabilities
TOTAL EQUITY AND LIABILITIES 8,294 8,035 8,202
Net asset value - cents per
share 1,009 1,130 1,214
Rounding of figures may result in computational discrepancies.
Group cash flow statement
Quarter Quarter Quarter
ended ended ended
December September December
2005 2005 2004
Restated Restated
SA Rand million Unaudited Unaudited Unaudited
Cash flows from
operating activities
Receipts from customers 4,818 4,098 4,010
Payments to suppliers
and employees (3,588) (2,913) (3,115)
Cash generated from operations 1,230 1,185 895
Cash utilised by
discontinued operations (23) (51) (16)
Environmental, rehabilitation
and other expenditure (48) (27) (80)
Termination of
employee benefit plan - (61) -
Taxation paid (48) (45) (25)
Net cash inflow from
operating activities 1,110 1,000 774
Cash flows from
investing activities
Capital expenditure (1,283) (1,385) (1,181)
Proceeds from disposal
of tangible assets 37 16 20
Proceeds on disposal
of discontinued assets 18 8 -
Other investments acquired (67) (4) (26)
Associate acquired (1) (1) -
Proceeds from disposal
of investments 6 1 -
Acquisition disposal
of subsidaries - - (40)
Cash in the
subsidiary acquired - - -
Cash restricted for use 33 105 -
Loans advanced (2) - (13)
Repayment of loans advanced 23 2 412
Utilised in hedge restructure - - (703)
Net cash outflow from
investing activities (1,235) (1,258) (1,531)
Cash flows from
financing activities
Proceeds from issue
of share capital 25 17 6
Share issue expenses - - -
Proceeds from borrowings 154 926 90
Repayment of borrowings (141) (148) (477)
Interest received 20 21 50
Finance costs (45) (135) (23)
Dividends paid (26) (507) (52)
Proceeds from hedge restructure - - 228
Net cash (outflow) inflow
from financing activities (12) 175 (178)
Net decrease in cash
and cash equivalents (137) (83) (935)
Translation (4) (92) (153)
Cash and cash equivalents
at beginning of year 1,469 1,644 2,718
Net cash and cash
equivalents at end of year 1,328 1,469 1,630
Cash generated
(utilised) from operations
(Loss) profit before taxation (1,487) (319) (44)
Adjusted for:
Non-cash movements 70 105 96
Movement on non-hedge derivatives 1,257 244 440
Amortisation of tangible assets 900 784 718
Deferred stripping costs (140) (39) (14)
Interest receivable (28) (34) (74)
416 (17) (24)
Operating special items
Finance costs and unwinding
of decommissioning and
restoration obligations 216 166 143
Amortisation of intangible assets 3 3 54
Fair value adjustment on
option component
of convertible bond 271 135 (94)
Movement in working capital (248) 157 (306)
Year Year
ended ended
December December
2005 2004
Restated
SA Rand million Unaudited Unaudited
Cash flows from
operating activities
Receipts from customers 17,189 15,368
Payments to suppliers
and employees (12,756) (11,846)
Cash generated from operations 4,433 3,522
Cash utilised by
discontinued operations (188) (12)
Environmental, rehabilitation
and other expenditure (104) (113)
Termination of
employee benefit plan (61) -
Taxation paid (188) (218)
Net cash inflow from
operating activities 3,892 3,179
Cash flows from
investing activities
Capital expenditure (4,600) (3,764)
Proceeds from disposal
of tangible assets 53 69
Proceeds on disposal
of discontinued assets 27 -
Other investments acquired (83) (196)
Associate acquired (93) -
Proceeds from disposal
of investments 7 -
Acquisition disposal
of subsidaries - (1,523)
Cash in the
subsidiary acquired - 384
Cash restricted for use 112 (45)
Loans advanced (45) (13)
Repayment of loans advanced 38 539
Utilised in hedge restructure (415) (703)
Net cash outflow from
investing activities (4,999) (5,252)
Cash flows from
financing activities
Proceeds from issue
of share capital 60 22
Share issue expenses - (1)
Proceeds from borrowings 4,194 7,236
Repayment of borrowings (2,183) (5,348)
Interest received 113 236
Finance costs (471) (465)
Dividends paid (1,051) (1,322)
Proceeds from hedge restructure - 228
Net cash (outflow) inflow
from financing activities 662 586
Net decrease in cash
and cash equivalents (445) (1,487)
Translation 143 (186)
Cash and cash equivalents
at beginning of year 1,630 3,303
Net cash and cash
equivalents at end of year 1,328 1,630
Cash generated
(utilised) from operations
(Loss) profit before taxation (1,117) 745
Adjusted for:
Non-cash movements 267 6
Movement on non-hedge derivatives 1,744 1,055
Amortisation of tangible assets 3,203 2,423
Deferred stripping costs (153) (144)
Interest receivable (155) (318)
444 (80)
Operating special items
Finance costs and unwinding
of decommissioning and
restoration obligations 690 563
Amortisation of intangible assets 13 208
Fair value adjustment on
option component
of convertible bond 211 (160)
Movement in working capital (714) (776)
Group cash flow statement
Quarter Quarter Quarter
ended ended ended
December September December
2005 2005 2004
Restated Restated
US Dollar million Unaudited Unaudited Unaudited
Cash flows from
operating activities
Receipts from customers 741 633 676
Payments to suppliers
and employees (551) (453) (505)
Cash generated from operations 190 180 171
Cash utilised by
discontinued operations (4) (8) (3)
Environmental, rehabilitation
and other expenditure (8) (4) (14)
Termination of
employee benefit plan - (10) -
Taxation paid (7) (7) (5)
Net cash inflow from
operating activities 171 151 149
Cash flows from
investing activities
Capital expenditure (197) (215) (192)
Proceeds from disposal
of tangible assets 6 2 3
Proceeds on disposal
of discontinued assets 3 1 -
Other investments acquired (10) (1) (5)
Associate acquired - - -
Proceeds from
disposal of investments - - -
Acquisition disposal
of subsidaries - - (6)
Cash in the subsidiary acquired - - -
Cash restricted for use 5 16 -
Loans advanced - - (2)
Repayment of loans advanced 4 - 66
Utilised in hedge restructure - - (123)
Net cash outflow
from investing activities (189) (195) (259)
Cash flows from
financing activities
Proceeds from issue
of share capital 4 3 -
Share issue expenses - - -
Proceeds from borrowings 19 139 16
Repayment of borrowings (19) (19) (82)
Interest received 3 3 9
Finance costs (6) (21) (5)
Dividends paid (4) (78) (8)
Proceeds from hedge restructure - - 40
Net cash (outflow) inflow
from financing activities (4) 28 (30)
Net decrease in cash
and cash equivalents (22) (16) (140)
Translation - 1 12
Cash and cash equivalents
at beginning of year 231 246 417
Net cash and cash
equivalents at end of year 209 231 289
Cash generated
(utilised) from operations
(Loss) profit before taxation (233) (58) (21)
Adjusted for:
Non-cash movements 10 15 12
Movement on non-hedge
derivatives 199 46 85
Amortisation of
tangible assets 138 121 121
Deferred stripping costs (22) (6) (2)
Interest receivable (4) (5) (12)
64 (2) (4)
Operating special items
Finance costs and unwinding
of decommissioning and
restoration obligations 33 26 24
Amortisation of intangible assets - - 8
Fair value adjustment on
option component
of convertible bond 42 21 (17)
Movement in working capital (37) 22 (23)
Year Year
ended ended
December December
2005 2004
Restated
US Dollar million Unaudited Unaudited
Cash flows from
operating activities
Receipts from customers 2,710 2,393
Payments to suppliers
and employees (2,011) (1,805)
Cash generated from operations 699 588
Cash utilised by
discontinued operations (31) (2)
Environmental, rehabilitation
and other expenditure (16) (18)
Termination of
employee benefit plan (10) -
Taxation paid (30) (34)
Net cash inflow from
operating activities 612 534
Cash flows from
investing activities
Capital expenditure (722) (585)
Proceeds from disposal
of tangible assets 8 10
Proceeds on disposal
of discontinued assets 4 -
Other investments acquired (11) (30)
Associate acquired (15) -
Proceeds from
disposal of investments - -
Acquisition disposal
of subsidaries - (227)
Cash in the subsidiary acquired - 56
Cash restricted for use 17 (6)
Loans advanced (7) (2)
Repayment of loans advanced 6 85
Utilised in hedge restructure (69) (123)
Net cash outflow
from investing activities (789) (822)
Cash flows from
financing activities
Proceeds from issue
of share capital 9 3
Share issue expenses - -
Proceeds from borrowings 659 1,077
Repayment of borrowings (343) (818)
Interest received 18 37
Finance costs (74) (72)
Dividends paid (169) (198)
Proceeds from hedge restructure - 40
Net cash (outflow) inflow
from financing activities 100 69
Net decrease in cash
and cash equivalents (77) (219)
Translation (3) 13
Cash and cash equivalents
at beginning of year 289 495
Net cash and cash
equivalents at end of year 209 289
Cash generated
(utilised) from operations
(Loss) profit before taxation (160) 97
Adjusted for:
Non-cash movements 41 4
Movement on non-hedge
derivatives 262 181
Amortisation of
tangible assets 503 380
Deferred stripping costs (24) (21)
Interest receivable (25) (49)
68 (12)
Operating special items
Finance costs and unwinding
of decommissioning and
restoration obligations 108 87
Amortisation of intangible assets 2 32
Fair value adjustment on
option component
of convertible bond 32 (27)
Movement in working capital (108) (84)
Statement of recognised income and expense
for the year ended 31 December 2005
Year ended Year ended
ended ended
December December
2005 2004
Unaudited Unaudited
SA Rand million
Actuarial gains and losses on defined benefit
retirement plans (15)
(173)
Net loss on cash flow hedges removed from equity
and reported in income 391 867
Net (loss) gain on cash flow hedges (1,281) 236
Net gain on available for sale financial assets 24 12
Service cost of bonus share scheme (LTIP and BSP) 15 -
Deferred taxation on items above 445 (286)
Net exchange translation differences (146) 183
Net (expense) income recognised directly in equity (725) 997
(Loss) profit for the period (1,116) 851
Total recognised income and expense for the period (1,841) 1,848
Attributable to:
Equity shareholders of the parent (1,982) 1,825
Minority interest 141 23
(1,841) 1,848
US Dollar million
Actuarial gains and losses on defined benefit
retirement plans (27) (3)
Net loss on cash flow hedges removed from equity
and reported in income 18 134
Net (loss) gain on cash flow hedges (202) 48
Net gain on available for sale financial assets 3 2
Service cost of bonus share scheme (LTIP and BSP) 2 -
Deferred taxation on items above 69 (42)
Net exchange translation differences 45 (20)
Net (expense) income recognised directly in equity (92) 119
(Loss) profit for the period (160) 127
Total recognised income and expense for the period (252) 246
Attributable to:
Equity shareholders of the parent (274) 227
Minority interest 22 19
(252) 246
Rounding of figures may result in computational discrepancies.
Notes
for the quarter and year ended 31 December 2005
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 2004
except for the new and revised International Financial Reporting Standards
(IFRS) statements which are effective 1 January 2005, where applicable and
where indicated.
The financial statements of AngloGold Ashanti have been prepared in compliance
with IAS34, in compliance with the JSE Listings Requirements and in the manner
required by the South African Companies Act, 1973 for the preparation of
financial information of the group for the quarter and year ended 31 December
2005.
Changes to comparative information: During the year, AngloGold Ashanti adopted
various accounting policies relating to the convertible bond and the method of
accounting for its post-retirement medical and pension obligations, and has
complied with IFRS statements for the accounting for the Ergo discontinuance,
which details have been fully disclosed in prior quarterly reports. As part of
the year-end process and in compliance with disclosures for the year ended 31
December 2005, certain amounts have been reclassified to agree with current
disclosures. Full details of all changes will be presented in the 2005 annual
report which is expected to be distributed to shareholders during March 2006.
2. Revenue
Quarter ended Year ended
Dec Sept Dec Dec
2005 2005 2005 2004
Restated Restated
Unaudited Unaudited Unaudited Unaudited
SA Rand million
Gold income 4,337 4,151 16,750 14,788
Sale of uranium,
silver and sulphuric
acid 112 147 483 486
Interest receivable 28 34 155 318
4,478 4,332 17,388 15,592
Quarter ended Year ended
Dec Sept Dec Dec
2005 2005 2005 2004
Restated Restated
Unaudited Unaudited Unaudited Unaudited
US Dollar million
Gold income 665 638 2,629 2,309
Sale of uranium, silver
and sulphuric
acid 17 23 76 76
Interest receivable 4 5 25 49
687 666 2,730 2,434
3. Cost of sales
Quarter ended Year ended
Dec Sept Dec Dec
2005 2005 2005 2004
Restated Restated
Unaudited Unaudited Unaudited Unaudited
SA Rand million
Cash operating costs 2,676 2,757 10,828 9,572
Other cash costs 116 104 412 342
Total cash costs 2,792 2,861 11,240 9,914
Retrenchment costs 62 60 168 52
Rehabilitation & other
non-cash costs 207 67 368 136
Production costs 3,061 2,988 11,776 10,102
Amortisation of
tangible assets 900 784 3,203 2,423
Amortisation of
intangible assets 3 3 13 8
Total production costs 3,965 3,775 14,992 12,533
Inventory change (35) (28) (279) (228)
3,929 3,748 14,713 12,305
Quarter ended Year ended
Dec Sept Dec Dec
2005 2005 2005 2004
Restated Restated
Unaudited Unaudited Unaudited Unaudited
US Dollar million
Cash operating costs 410 423 1,703 1,495
Other cash costs 18 16 65 54
Total cash costs 428 439 1,768 1,549
Retrenchment costs 9 9 26 7
Rehabilitation & other
non-cash costs 31 10 57 22
Production costs 468 459 1,851 1,578
Amortisation of
tangible assets 138 121 503 380
Amortisation of
intangible assets - - 2 1
Total production costs 607 580 2,356 1,959
Inventory change (5) (4) (45) (35)
602 576 2,311 1,924
Rounding of figures may result in computational discrepancies.
4. Operating special items
Quarter ended Year ended
Dec Sept Dec Dec
2005 2005 2005 2004
Restated Restated
Unaudited Unaudited Unaudited Unaudited
SA Rand million
Contract termination
fee at Geita - (55) (55) -
Underprovision of
indirect taxes (27) - (27) -
Impairment of
intangible assets (125) - (125) -
Impairment of tangible
assets (255) - (300) (8)
(Loss) profit on sale
and abandonment
of assets (9) 17 8 88
(416) (38) (499) 80
Quarter ended Year ended
Dec Sept Dec Dec
2005 2005 2005 2004
Restated Restated
Unaudited Unaudited Unaudited Unaudited
US Dollar million
Contract termination
fee at Geita - (9) (9) -
Underprovision of
indirect taxes (4) - (4) -
Impairment of
intangible assets (20) - (20) -
Impairment of tangible
assets (38) - (44) (1)
(Loss) profit on sale
and abandonment
of assets (2) 2 - 13
(64) (7) (77) 12
5. Taxation
Quarter ended Year ended
Dec Sept Dec Dec
2005 2005 2005 2004
Restated Restated
Unaudited Unaudited Unaudited Unaudited
SA Rand million
Current taxation (121) - (184) (229)
Under provision prior
year (347) (36) (347) (169)
Total current taxation (468) (36) (531) (398)
Deferred taxation 4 (35) (244) (215)
Deferred taxation -
impairment of
tangible assets 64 - 79 -
Deferred taxation -
change in
estimated deferred
taxation 74 - 74 566
Deferred taxation -
contract
- 19 19 -
termination expenditure
at Geita
Deferred taxation
effect on change in
tax rate 302 - 695 -
Deferred taxation on
unrealised non-
hedge derivatives 133 42 128 226
Total deferred taxation 577 26 751 577
Total taxation 109 (10) 220 179
Quarter ended Year ended
Dec Sept Dec Dec
2005 2005 2005 2004
Restated Restated
Unaudited Unaudited Unaudited Unaudited
US Dollar million
Current taxation (19) - (30) (40)
Under provision prior
year (52) (6) (52) (26)
Total current taxation (71) (6) (82) (66)
Deferred taxation (1) (5) (36) (32)
Deferred taxation -
impairment of
tangible assets 10 - 12 -
Deferred taxation -
change in
estimated deferred
taxation 12 - 12 99
Deferred taxation -
contract
- 3 3 -
termination expenditure
at Geita
Deferred taxation
effect on change in
tax rate 48 - 106 -
Deferred taxation on
unrealised non-
hedge derivatives 21 6 21 40
Total deferred taxation 90 4 118 107
Total taxation 19 (2) 36 41
Rounding of figures may result in computational discrepancies.
6. Headline (loss) earnings
Quarter ended Year ended
Dec Sept Dec Dec
2005 2005 2005 2004
Restated Restated
Unaudited Unaudited Unaudited Unaudited
SA Rand million
(Loss) profit
attributable to equity
shareholders has been
adjusted
by the following to
arrive at headline
earnings:
(Loss) profit
attributable to equity
shareholders (1,463) (415) (1,262) 728
Amortisation of
intangible assets - - - 200
Impairment of tangible
assets (note 4) 255 - 300 8
Impairment of
intangible assets
(note 4) 125 - 125 -
(Profit) on disposal of
assets (note 4) (22) (17) (39) (88)
Impairment of associate 11 - 11 -
Taxation on items above
- current
portion 4 (1) 2 16
Taxation on items above
- deferred
portion (64) - (79) -
Net loss from
discontinued operations
(note 9) 56 42 219 73
Headline (loss) earnings (1,097) (390) (723) 937
(1)
Cents per share
Headline (loss) earnings (414) (147) (273) 373
Quarter ended Year ended
Dec Sept Dec Dec
2005 2005 2005 2004
Restated Restated
Unaudited Unaudited Unaudited Unaudited
US Dollar million
(Loss) profit
attributable to equity
shareholders has been
adjusted
by the following to
arrive at headline
earnings:
(Loss) profit
attributable to equity
shareholders (227) (73) (183) 108
Amortisation of
intangible assets - - - 31
Impairment of tangible
assets (note 4) 38 - 44 1
Impairment of
intangible assets
(note 4) 20 - 20 -
(Profit) on disposal of
assets (note 4) (4) (2) (5) (13)
Impairment of associate 2 - 2 -
Taxation on items above
- current
portion 1 - - 3
Taxation on items above
- deferred
portion (10) - (12) -
Net loss from
discontinued operations
(note 9) 9 7 36 11
Headline (loss) earnings (171) (69) (98) 141
(1)
Cents per share
Headline (loss) earnings (65) (26) (37) 56
(1) Calculated on the basic weighted average number of ordinary shares.
7. Headline earnings adjusted for the effect of unrealised non-hedge
derivatives, fair value gain (loss) on convertible bond and interest rate
swaps
Quarter ended Year ended
Dec Sept Dec Dec
2005 2005 2005 2004
Restated Restated
Unaudited Unaudited Unaudited Unaudited
SA Rand million
Headline (loss)
earnings (note 6) (1,097) (390) (723) 937
Unrealised non-hedge
derivatives 1,210 435 1,900 1,146
Deferred taxation on
unrealised non-
hedge derivatives (note
5) (133) (42) (128) (226)
Fair value gain (loss)
on convertible
bond 271 135 211 (160)
Fair value gain (loss)
on interest rate
swap - - 5 (10)
Deferred tax on
interest rate swap - - - 4
Headline earnings
before unrealised
non-hedge derivatives,
fair value
gain (loss) on
convertible bond
and interest rate swaps 250 138 1,265 1,691
Quarter ended Year ended
Dec Sept Dec Dec
2005 2005 2005 2004
Restated Restated
Unaudited Unaudited Unaudited Unaudited
US Dollar million
Headline (loss)
earnings (note 6) (171) (69) (98) 141
Unrealised non-hedge
derivatives 191 76 286 198
Deferred taxation on
unrealised non-
hedge derivatives (note
5) (21) (6) (20) (40)
Fair value gain (loss)
on convertible
bond 42 21 32 (27)
Fair value gain (loss)
on interest rate
swap - 1 (2)
Deferred tax on
interest rate swap - - 1
Headline earnings
before unrealised
non-hedge derivatives,
fair value
gain (loss) on
convertible bond
and interest rate swaps 41 22 200 271
Rounding of figures may result in computational discrepancies.
Quarter ended Year ended
Dec Sept Dec Dec
2005 2005 2005 2004
Restated Restated
Unaudited Unaudited Unaudited Unaudited
SA Rand million
Cents per share(1)
Headline earnings
adjusted for the
effect of unrealised
non-hedge
derivatives, fair value
gain (loss)
on convertible bond and
interest
rate swaps 94 52 478 673
Quarter ended Year ended
Dec Sept Dec Dec
2005 2005 2005 2004
Restated Restated
Unaudited Unaudited Unaudited Unaudited
US Dollar million
Cents per share(1)
Headline earnings
adjusted for the
effect of unrealised
non-hedge
derivatives, fair value
gain (loss)
on convertible bond and
interest
rate swaps 15 8 76 108
(1) Calculated on the basic weighted average number of ordinary shares.
(2) Non-hedge derivatives in the income statement comprise the change in
fair value of all non-hedge derivatives as follows:
- Open positions: The change in fair value from the previous reporting date
or date of recognition (if later) through to the current reporting date;
and
- Settled positions: The change in fair value from the previous reporting
date or date of recognition (if later) through to the date of settlement.
Headline (loss) earnings adjusted for the effect of unrealised non-hedge
derivatives, fair value gain (loss) on convertible bond and interest rate
swaps, is intended to illustrate earnings after adjusting for:
- The unrealised fair value change in contracts that are still open at the
reporting date, as well as, the unwinding of the historic
marked-to-market value of the positions settled in the period; and
- Investment in hedge restructure transaction: During the hedge restructure
in the quarter ended 31 December 2004 and the quarter ended 31 March
2005, $83m and $69m in cash was injected into the hedge book in these
quarters to increase the value of long- dated contracts. The entire
investment in short-dated derivatives (certain of which have now matured)
and investment in long-dated derivatives (all of which have not yet
matured), for the purposes of the adjustment to earnings, will only be
taken into account when the realised portion of long-dated non-hedge
derivatives are settled, and not when the short-term contracts are
settled.
- The unrealised fair value change on the option component of the
convertible bond.
8. Gross profit adjusted for the effect of unrealised non-hedge derivatives
Quarter ended Year ended
Dec Sept Dec Dec
2005 2005 2005 2004
Restated Restated
Unaudited Unaudited Unaudited Unaudited
SA Rand million
Reconciliation of gross
profit to gross
profit adjusted for the
effect of
unrealised non-hedge
derivatives:
Gross profit (340) 243 1,088 1,697
Unrealised non-hedge
derivatives 1,210 435 1,900 1,147
Gross profit adjusted
for the effect
of unrealised non-hedge
derivatives (1) 870 678 2,988 2,844
Quarter ended Year ended
Dec Sept Dec Dec
2005 2005 2005 2004
Restated Restated
Unaudited Unaudited Unaudited Unaudited
US Dollar million
Reconciliation of gross
profit to gross
profit adjusted for the
effect of
unrealised non-hedge
derivatives:
Gross profit (57) 29 183 243
Unrealised non-hedge
derivatives 191 76 286 197
Gross profit adjusted
for the effect
of unrealised non-hedge
derivatives (1) 134 105 469 441
Rounding of figures may result in computational discrepancies.
(1) Non-hedge derivatives in the income statement comprise the change in
fair value of all non-hedge derivatives as follows:
- Open positions: The change in fair value from the previous reporting
date or date of recognition (if later) through to the current reporting
date; and
- Settled positions: The change in fair value from the previous reporting
date or date of recognition (if later) through to the date of
settlement.
Gross (loss) profit adjusted for the effect of unrealised non-hedge
derivatives, is intended to illustrate earnings after adjusting for:
- The unrealised fair value change in contracts that are still open at the
reporting date, as well as, the unwinding of the historic
marked-to-market value of the positions settled in the period; and
- Investment in hedge restructure transaction: During the hedge
restructure in the quarter ended 31 December 2004 and the quarter ended
31 March 2005, $83m and $69m in cash was injected into the hedge book in
these quarters to increase the value of long- dated contracts. The
entire investment in short-dated derivatives (certain of which have now
matured) and investment in long-dated derivatives (all of which have not
yet matured), for the purposes of the adjustment to earnings, will only
be taken into account when the realised portion of long-dated non-hedge
derivatives are settled, and not when the short-term contracts are
settled.
9. Discontinued operations
The Ergo surface dump reclamation, which forms part of the South African
operations, has been discontinued as the operation has reached the end of its
useful life. The results of Ergo are presented below:
Quarter ended Year ended
Dec Sept Dec Dec
2005 2005 2005 2004
Restated Restated
Unaudited Unaudited Unaudited Unaudited
SA Rand million
Gold income 12 4 111 560
Retrenchment,
rehabilitation and
other
costs (7) (13) (417) (628)
Gross profit (loss) 5 (9) (307) (68)
Impairment loss reversed - - 115 -
Profit (loss) before
taxation from
discontinued operations 5 (9) (192) (68)
Deferred taxation (61) (34) (27) (5)
Net loss attributable
to discontinued
operations (56) (42) (219) (73)
Quarter ended Year ended
Dec Sept Dec Dec
2005 2005 2005 2004
Restated Restated
Unaudited Unaudited Unaudited Unaudited
US Dollar million
Gold income 2 1 18 87
Retrenchment,
rehabilitation and
other
costs (1) (2) (66) (98)
Gross profit (loss) 1 (1) (48) (11)
Impairment loss reversed - - 17 -
Profit (loss) before
taxation from
discontinued operations 1 (1) (31) (11)
Deferred taxation (9) (5) (5) -
Net loss attributable
to discontinued
operations (9) (7) (36) (11)
10. Capital commitments
Dec Sept Dec
2005 2005 2004
Restated Restated
Unaudited Unaudited Unaudited
SA Rand million
Orders placed and outstanding on
capital contracts at the prevailing
rate of exchange 1,181 1,753 835
Dec Sept Dec
2005 2005 2004
Restated Restated
Unaudited Unaudited Unaudited
US Dollar million
Orders placed and outstanding on
capital contracts at the prevailing
rate of exchange 186 276 148
Rounding of figures may result in computational discrepancies.
Liquidity and capital resources:
To service the above capital commitments and other operational requirements,
the group is dependant upon cash generated from the South African operations,
borrowing facilities and cash distributions from offshore operations.
Cash generated from the South African operations fund to a large extent the
capital expenditure to maintain and expand those operations in South Africa.
Consequently other funding requirements are serviced from borrowing facilities
and offshore distributions which are subject to market and other risks. The
credit facilities and other financing arrangements contain financial covenants
and other similar undertakings.
The distributions from offshore operations are subject to foreign investment
and exchange control laws and regulations and the quantity of foreign exchange
available in offshore countries. In addition offshore distributions from joint
venture partners are subject to consent and co-operation from those joint
venture partners.
The group"s current covenant performance, cash and liquidity funds from the
various resources available are within the required limits which will meet its
obligations and capital commitments.
11. Shares
Quarter ended
Dec Sept Dec
2005 2005 2004
Restated Restated
Unaudited Unaudited Unaudited
Authorised shares:
Ordinary shares of 25 SA cents
each 400,000,000 400,000,000 400,000,000
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 shares:
Ordinary shares 264,938,432 264,749,794 264,462,894
A redeemable preference shares 2,000,000 2,000,000 2,000,000
B redeemable preference shares 778,896 778,896 778,896
Weighted average number of
ordinary
shares for the period
Basic ordinary shares 264,851,516 264,642,218 264,415,225
Diluted number of ordinary
shares 265,416,952 265,224,451 265,085,959
Year ended
Dec Dec
2005 2004
Restated
Unaudited Unaudited
Authorised shares:
Ordinary shares of 25 SA cents each 400,000,000 400,000,000
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 shares:
Ordinary shares 264,938,432 264,462,894
A redeemable preference shares 2,000,000 2,000,000
B redeemable preference shares 778,896 778,896
Weighted average number of ordinary
shares for the period
Basic ordinary shares 264,635,634 251,352,552
Diluted number of ordinary shares 265,236,949 252,048,301
During the quarter, 188,638 ordinary shares were allotted in terms of the
AngloGold Share Incentive Scheme. All the preference shares are held by a
wholly-owned subsidiary company.
12. Ordinary share capital and premium
As at As at As at As at
Dec Dec Dec Dec
2005 2004 2005 2004
Restated Restated
Unaudited Unaudited Unaudited Unaudited
SA Rand million US Dollar million
Balance at December 18,987 9,669 3,364 1,450
Ordinary shares issued 60 9,318 9 1,369
Translation - - (371) 545
Balance at December 19,047 18,987 3,002 3,364
Rounding of figures may result in computational discrepancies.
13. Retained earnings and other reserves
Non- Foreign
Retained distributable currency
Earnings reserves translation
(1) (2) reserve
SA Rand million
Balance at December 2003 as
previously reported 3,848 138 (755)
Change in accounting policy for
defined
benefit retirement plans
As restated 3,848 138 (755)
Actuarial gains and losses
recognised (4)
Deferred taxation recognised
directly in equity
Net loss on cash flow hedges
removed from equity
and reported in income
Net gain on cash flow hedges
Deferred taxation on cash flow
hedges
Net gain on available for sale
financial assets
Exchange translation differences (2,797)
Profit attributable to equity
shareholders 728
Dividends paid (1,197)
Balance at December 2004
(restated) 3,379 138 (3,552)
Actuarial gains and losses
recognised (4)
Deferred taxation recognised
directly in equity
Net loss on cash flow hedges
removed from equity
and reported in income
Net loss on cash flow hedges
Deferred taxation on cash flow
hedges
Net gain on available for sale
financial assets
Exchange translation differences 1,642
Share based payment expenses
Loss attributable to equity
shareholders (1,262)
Dividends paid (926)
Balance at December 2005 1,191 138 (1,910)
Other
Comprehen-
sive Total
income (3)
SA Rand million
Balance at December 2003 as previously reported (2,047) 1,184
Change in accounting policy for defined
benefit retirement plans (112) (112)
As restated (2,159) 1,072
Actuarial gains and losses recognised (4) (15) (15)
Deferred taxation recognised directly in equity 5 5
Net loss on cash flow hedges removed from equity
and reported in income 864 864
Net gain on cash flow hedges 239 239
Deferred taxation on cash flow hedges (291) (291)
Net gain on available for sale financial assets 12 12
Exchange translation differences 183 (2,614)
Profit attributable to equity shareholders 728
Dividends paid (1,197)
Balance at December 2004 (restated) (1,162) (1,197)
Actuarial gains and losses recognised (4) (173) (173)
Deferred taxation recognised directly in equity 68 68
Net loss on cash flow hedges removed from equity
and reported in income 387 387
Net loss on cash flow hedges (1,272) (1,272)
Deferred taxation on cash flow hedges 377 377
Net gain on available for sale financial assets 24 24
Exchange translation differences (146) 1,496
Share based payment expenses 15 15
Loss attributable to equity shareholders (1,262)
Dividends paid (926)
Balance at December 2005 (1,882) (2,463)
Non- Foreign
Retained distributable currency
Earnings reserves translation
(1) (2) reserve
US Dollars million
Balance at December 2003 as
previously reported 577 21 (113)
Effects of changes in foreign
exchange rates (IAS21)
(220) 220
revised
Change in accounting policy for
defined
benefit retirement plans
As restated 357 21 107
Actuarial gains and losses
recognised (4)
Deferred taxation recognised
directly in equity
Net loss on cash flow hedges
removed from equity
and reported in income
Net gain on cash flow hedges
Deferred taxation on cash flow
hedges
Net gain on available for sale
financial assets
Exchange translation differences 3 (424)
Profit attributable to equity
shareholders 108
Dividends paid (179)
Balance at December 2004
(restated) 286 24 (317)
Actuarial gains and losses
recognised (4)
Deferred taxation recognised
directly in equity
Net loss on cash flow hedges
removed from equity
and reported in income
Net loss on cash flow hedges
Deferred taxation on cash flow
hedges
Net gain on available for sale
financial assets
Exchange translation differences (2) 250
Share based payment expenses
Loss attributable to equity
shareholders (183)
Dividends paid (149)
Balance at December 2005 (46) 22 (67)
Other
Comprehen-
sive Total
income (3)
US Dollars million
Balance at December 2003 as previously reported (307) 178
Effects of changes in foreign exchange rates (IAS21)
revised
Change in accounting policy for defined
benefit retirement plans (18) (18)
As restated (325) 160
Actuarial gains and losses recognised (4) (3) (3)
Deferred taxation recognised directly in equity 1 1
Net loss on cash flow hedges removed from equity
and reported in income 134 134
Net gain on cash flow hedges 48 48
Deferred taxation on cash flow hedges (43) (43)
Net gain on available for sale financial assets 2 2
Exchange translation differences (20) (441)
Profit attributable to equity shareholders 108
Dividends paid (179)
Balance at December 2004 (restated) (206) (213)
Actuarial gains and losses recognised (4) (27) (27)
Deferred taxation recognised directly in equity 11 11
Net loss on cash flow hedges removed from equity
and reported in income 17 17
Net loss on cash flow hedges (200) (200)
Deferred taxation on cash flow hedges 58 58
Net gain on available for sale financial assets 3 3
Exchange translation differences 45 293
Share based payment expenses 2 2
Loss attributable to equity shareholders (183)
Dividends paid (149)
Balance at December 2005 (297) (388)
(1) The 2004 opening balances and comparative amounts have been restated in
terms of the effects of changes in foreign exchange rates (IAS21)
revised.
(2) Non-distributable reserves comprise a surplus on disposal of company
shares of $22m, R138m (2004: $24m, R138m).
(3) Other comprehensive income represents the effective portion of fair value
gains or losses in respect of cash flow hedges until the underlying
transaction occurs, upon which the gains or losses are recognised in
earnings.
(4) With the adoption of IAS 19 revised, actuarial gain and loss movements
are accounted through equity reserves. Actuarial gains and losses arise
from a change in assumption parameters and the difference between the
actual and expected return on plan assets.
Rounding of figures may result in computational discrepancies.
14. Minority interests
As at As at As at As at
Dec Dec Dec Dec
2005 2004 2005 2004
Restated Restated
Unaudited Unaudited Unaudited Unaudited
SA Rand million US Dollar million
Balance at December 327 354 58 53
Attributable profit 146 124 23 19
Dividends paid (125) (125) (20) (19)
At acquisition of
subsidiaries 18 3
- -
Net loss on cash flow
hedges removed from
equity and reported in
income 4 3 1 -
Net loss on cash flow
hedges (9) (3) (2) -
Exchange translation
differences 31 (43) (1) 2
Balance at December 374 327 59 58
15. Exchange rates
Dec Sept Dec
2005 2005 2004
Restated
Unaudited Unaudited Unaudited
Rand/US dollar average for the period 6.37 6.31 6.44
Rand/US dollar average for the quarter 6.53 6.51 6.05
Rand/US dollar closing 6.35 6.36 5.65
Rand/Australian dollar average for
the period 4.85 4.85 4.82
Rand/Australian dollar average for
the quarter 4.86 4.95 4.58
Rand/Australian dollar closing 4.65 4.85 4.42
Rounding of figures may result in computational discrepancies.
16. Contingent liabilities
AngloGold Ashanti"s contingent liabilities at 31 December 2005, are detailed
below:
Water pumping cost - South Africa - The South African Department of Water
Affairs and Forestry issued a new directive on 1 November 2005 ordering the
four mining groups, Simmer and Jack Investments (Proprietary) Limited, Simmer
and Jack Mines Limited (collectively known as Simmers who have purchased
Buffelsfontein shafts from DRDGold Limited), Harmony Gold Mining Company
Limited, AngloGold Ashanti and Stilfontein Gold Mining Company to share
equally, the costs of pumping water at Stilfontein"s Margaret Shaft. This
follows an interdict application made by AngloGold Ashanti in response to
DRDGold"s threat to cease funding the pumping of water at the Margaret and
Buffelsfontein shafts, after placing Buffelsfontein, its subsidiary that
operated the North West operations, into liquidation on 22 March 2005. Simmers
have purchased the Buffelsfontein shafts from DRDGold and have assumed the
water management liabilities associated with the Buffelsfontein shafts.
The directive also orders the mining companies to submit an agreement and a
joint proposal towards the long- term sustainable management of water arising
from the mining activities in the area. AngloGold Ashanti believes that it is
not liable to fund these pumping costs but cannot provide any assurances
regarding the ultimate result until the matter has been settled.
Groundwater pollution - South Africa - AngloGold Ashanti has identified a
number of groundwater pollution sites at its currently operations in South
Africa, and has investigated a number of different technologies and
methodologies that could possibly be used to remediate the pollution plumes.
The viability of the suggested remediation techniques in the local geological
formation in South Africa is however unknown. No sites have been remediated and
present research and development work is focused on several pilot projects to
find a solution that will in fact yield satisfactory results in South African
conditions. Subject to the technology being developed as a remediation
technique, no reliable estimate can be made for the obligation.
Retrenchment costs - South Africa - Following the decision to discontinue
operations at Ergo in 2005, employees surplus to requirements have been
terminated and retrenchment packages settled. Ergo continues to retain various
staff members to complete the discontinuance and the attendant environmental
obligations which are expected to be completed by 2012. The retained employees
may resign, be transferred within the Group, attain retirement age or be
retrenched as their current position is made redundant. AngloGold Ashanti is
currently unable to determine the effect, if any, of any potential retrenchment
costs.
Re-export arrangements of artifacts - South Africa - AngloGold Ashanti has
undertaken to re-export certain gold artefacts, temporarily imported into South
Africa, for which custom and value added tax was waived to the amount of $3m.
Provision of surety - South Africa - AngloGold Ashanti has provided sureties in
favour of a lender on a Gold loan facility with its affiliate Oro Africa (Pty)
Ltd and one of its subsidiaries to a maximum value of R100m ($16m). The
suretyship agreements have a termination notice period of 90 days.
AngloGold Ashanti Pension Fund - South Africa - A statutory valuation of the
defined benefit pension fund was performed as at 31 December 2002, which showed
that the fund was in deficit. To fund the shortfall, the rate of the company
contribution was reviewed and increased during 2004. In addition, a formal
additional funding plan was submitted to and approved by the Financial Services
Board. According to the plan, the company funded R34m ($5m) in 2005, R31m ($5m)
in 2004 and a further R259m ($35m) will be funded during the years 2006 to
2011. The plan is evaluated by independent actuaries on an annual basis as at
31 December of each year, and a formal statutory valuation as at 31 December
2005 will be completed during the first six months of 2006. In arriving at
their conclusions, the actuaries took into account, reasonable long-term
estimates of inflation, increases in wages, salaries and pension, as well as
returns on investment. A preliminary valuation for December 2005 indicates that
the funding plan will no longer be effected.
Exploration and development tenements - Australia - AngloGold Ashanti stands
collateral to certain bankers for the satisfactory contract performance in
relation to exploration and development tenements and mining operations in
Australia, amounting to $15m.
Sales tax on gold deliveries - Brazil - Mineracao Serra Grande S.A., the
operator of the Crixas mine in Brazil, has received assessments from the State
of Goias Tax Inspection related to payments of sales taxes on gold deliveries
for export. The Serra Grande Joint Venture is co-owned with Kinross Gold
Corporation. The company manages the operation and its attributable share of
the assessment is approximately $29 million. The company believes the
assessments are in violation of Federal legislation on sales taxes and that
there is a remote chance of success for the State of Goias. The assessment has
been appealed.
Litigation with mining contractor and non-payment of receivable - Ghana
A group of employees of Mining and Building Contractors (MBC), the Obuasi
underground developer, are claiming to be employees of the group. If
successful, there is a risk of some employees claiming rights to share
options;
Bayswater Construction and Mining Limited (BCM) have instituted court
proceedings against the Bibiani mine (AGBL), claiming $4.66m pertaining to a
contractual dispute. This matter is currently stayed on technical grounds to
the effect that the litigation cannot commence until arbitration has been
concluded. The potential liability amounts to $3m;
BCM has instituted a claim against the Bibiani mine relating to a wall slip
to which BCM considered that they had an exclusive right under their
contract to repair. AGBL awarded the repair to a third party. The potential
liability amounts to $1m.
Capital cost of water pipelines and electricity supply - Namibia - A potential
liability of $1m exists at Navachab in Namibia to pay the outstanding capital
cost of the water pipeline and electricity supply in the event of mine closure
prior to 2019.
Federal violations - USA - Sierra Club and Mineral Policy Center filed two
lawsuits against Cripple Creek & Victor Gold Mining Company, AngloGold Ashanti
(Colorado) Corp., AngloGold Ashanti North America Inc., and Golden Cycle Gold
Corporation alleging various past and ongoing violations of the federal Clean
Water Act at the Cresson Project near Victor, Colorado. The Defendants dispute
that there have been or that there are ongoing violations of the Clean Water
Act, and have been vigorously defending themselves in the ensuing years. The
trial is scheduled February 2006. Without conceding any liability but in an
attempt to resolve these matters without the cost and expense of trial the
parties have held settlement discussions and the Defendants have offered
approximately $500,000 to conduct on-the-ground activities and pay some of
Plaintiffs costs. At this time, no settlement has been reached. The potential
liability amounts to $1m.
Obligations pertaining to a lease agreement - USA - Pursuant to the assignment
of equipment leases to Queenstake Resources USA Inc., as a result of the sale
of Jerritt Canyon effective 30 June 2003, AngloGold Ashanti USA has become
secondarily liable in the event of a default by Queenstake Resources USA Inc.
in performance of any of the lessee"s obligations arising under the Lease.
These agreements have a remaining term of 1 year.
17. Concentration of risk
There is a concentration of risk in respect of reimbursable value added tax and
fuel duties from the Malian government:
Reimbursable value added tax due from the Malian government, for the company
amount to an attributable $25m at 31 December 2005 (31 December 2004:
attributable $14m). The last audited value added tax return was for the
period ended 30 June 2005 and at that date an attributable $12m was still
outstanding and an attributable $6m is still subject to audit. The
accounting processes for the unaudited amount are in accordance with the
processes advised by the Malian government in terms of the previous audits.
Reimbursable fuel duties from the Malian government, for the company amount
to an attributable $13m at 31 December 2005 (31 December 2004: attributable
$13m). Fuel duties are required to be submitted before 31 January of the
following year and are subject to authorisation by firstly the Department of
Mining and secondly the Custom and Excise authorities. The Customs and
Excise authorities have approved an attributable $7m which is still
outstanding, whilst an attributable $6m is still subject to authorisation.
The accounting processes for the unauthorised amount are in accordance with
the processes advised by the Malian government in terms of the previous
authorisations.
The government of Mali is a shareholder in all the Malian entities and has
promised to provide a repayment plan for the amounts due.
18. Attributable interest
Although AngloGold Ashanti holds a 66.7% interest in Cripple Creek & Victor
Gold Mining Company Limited, it is currently entitled to receive 100% of
the cash flows from the operation until the loan, extended to the joint
venture by AngloGold Ashanti USA Inc., is repaid.
19. Borrowings
AngloGold Ashanti"s borrowings are interest bearing.
20. Announcements
On 26 October 2005, AngloGold Ashanti announced that it welcomed the
announcement by Anglo American that it intended to provide AngloGold
Ashanti with greater flexibility to pursue its strategy by deciding to
reduce its shareholding in the company, whilst still intending to remain a
significant shareholder in the medium term.
21. Dividend
The directors have today declared Final Dividend No. 99 of 62 (Final
Dividend No. 97: 180) South African cents per ordinary share for the six
months ended 31 December 2005. In compliance with the requirements of
STRATE, given the company"s primary listing on the JSE Limited (formerly
JSE Securities Exchange South Africa), 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.
2006
Currency conversion date for UK pounds, Australian
dollars and Ghanaian cedis Thursday, 23 February
Last date to trade ordinary shares cum dividend Thursday, 23 February
Last date to register transfers of certificated
securities cum dividend Thursday, 23 February
Ordinary shares trade ex dividend Friday, 24 February
Record date Friday, 3 March
Payment date Friday, 10 March
On the payment date, dividends due to holders of certificated securities on the
South African share register will either be electronically transferred to
shareholders" bank accounts or, in the absence of suitable mandates, dividend
cheques will be posted to such shareholders.
Dividends in respect of dematerialised shareholdings will be credited to
shareholders" accounts with the relevant CSDP or broker.
To comply with the further requirements of STRATE, between Friday, 24 February
2006 and Friday, 3 March 2006, 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.
2006
Ex dividend on New York Stock Exchange Wednesday, 1 March
Record date Friday, 3 March
Approximate date for currency conversion Friday, 10 March
Approximate payment date of dividend Monday, 20 March
Assuming an exchange rate of R6.18/$1, the dividend payable on an ADS is
equivalent to 10 US cents. This compares with the final dividend of 30.37 US
cents per ADS paid on 7 March 2005. 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.
2006
Last date to trade and to register GhDSs cum dividend Friday, 24 February
GhDSs trade ex dividend Monday, 27 February
Record date Friday, 3 March
Approximate payment date of dividend Monday, 13 March
Assuming an exchange rate of R1/Cents (USD)1,472 the dividend payable per GhDS
is
equivalent to 9.13 cedis. This compares with the final dividend of 26.830 cedis
per GhDS paid on 28 February 2005. 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 10%, similar
to the rate applicable to dividend payments made by resident companies which is
currently at 10%.
22. Detailed report This report contains a summary of the results of AngloGold
Ashanti"s operations. A detailed report appears on the Internet and is
obtainable in printed format from the investor relations contacts, whose
details, along with the website address, appear at the end of this report.
By order of the Board
R P EDEY R M GODSELL
Chairman Chief Executive Officer
9 February 2006
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): AADA
Euronext Paris: VA
Euronext Brussels: ANG
JSE Sponsor: UBS
Auditors: Ernst & Young
Contacts
South Africa
Charles Carter
Telephone: +27 11 637 6385
Fax: +27 11 637 6400
E-mail: cecarter@AngloGoldAshanti.com
Michael Clements
Telephone: +27 11 637 6647
Fax: +27 11 637 6400
E-mail: mclements@AngloGoldAshanti.com
Clement Mamathuba
Telephone: +27 11 637 6223
Fax: +27 11 637 6400
E-mail:
cmamathuba@AngloGoldAshanti.com
United States of America
Andrea Maxey
Telephone: (800) 417 9255 (toll free in
USA and Canada) or +1 212 750 7999
Fax: +1 212 750 5626
E-mail: amaxey@AngloGoldAshanti.com
General E-mail enquiries
investors@AngloGoldAshanti.com
AngloGold Ashanti website
http://www.AngloGoldAshanti.com
PRINTED BY INCE (PTY) LIMITED
Directors
Executive
R M Godsell (Chief Executive Officer)
R Carvalho Silva !
N F Nicolau
S Venkatakrishnan *
K H Williams
Non-Executive
R P Edey * (Chairman)
Dr T J Motlatsi (Deputy Chairman)
F B Arisman #
Mrs E le R Bradley
C B Brayshaw
Dr S E Jonah KBE
R Medori
(Alternate: P G Whitcutt)
W A Nairn (Alternate: A H Calver *)
S R Thompson *
A J Trahar
P L Zim (Alternate: D D Barber)
* British # American Ghanaian
French ! Brazilian
Offices
Registered and Corporate
Managing Secretary: Ms Y Z Simelane
Company Secretary: C R Bull
11 Diagonal Street
Johannesburg 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 4604
Fax: +61 8 9425 4662
Ghana
Gold House
Patrice Lumumba Road
(P O Box 2665)
Accra
Ghana
Telephone: +233 21 772190
Fax: +233 21 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
Share Registrars
South Africa
Computershare Investor Services 2004
(Pty) Limited
Ground Floor, 70 Marshall Street
Johannesburg 2001
(PO Box 61051, Marshalltown 2107)
South Africa
Telephone: 0861 100 724 (in SA)
Fax: +27 11 688 5222
web.queries@computershare.co.za
United Kingdom
Computershare Investor Services PLC
P O Box 82
The Pavilions
Bridgwater Road
Bristol BS99 7NH
England
Telephone: +44 870 702 0000
Fax: +44 870 703 6119
Australia
Computershare Investor Services Pty Limited
Level 2, 45 St George"s Terrace
Perth, WA 6000
(GPO Box D182 Perth, WA 6840)
Australia
Telephone: +61 8 9323 2000
Telephone: 1300 55 7010 (in Australia)
Fax: +61 8 9323 2033
Ghana
NTHC Limited
Martco House
Off Kwame Nkrumah Avenue
POBox K1A 9563 Airport
Accra
Ghana
Telephone: +233 21 238492-3
Fax: +233 21 229975
ADR Depositary
The Bank of New York ("BoNY")
Investor Services, P O Box 11258
Church Street Station
New York, NY 10286-1258
United States of America
Telephone: +1 888 269 2377
(Toll free in USA) or +9 610 382 7836 outside USA)
E-mail: shareowners@bankofny.com
Website: http://www.stockbny.com
Global BuyDIRECT SM
BoNY maintains a direct share purchase
and dividend reinvestment plan for
ANGLOGOLD ASHANTI.
Telephone: +1-888-BNY-ADRS
Certain statements contained in this document, including, without limitation,
those concerning the economic outlook for the gold mining industry,
expectations regarding gold prices and production, the completion and
commencement of commercial operations of certain of AngloGold Ashanti"s
exploration and production projects, and its liquidity and capital resources
and expenditure, 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, fluctuations in gold prices and exchange rates, and
business and operational risk management. AngloGold Ashanti undertakes no
obligation to update publicly or release any revisions to these forward-looking
statements to reflect events or circumstances after the date of the
annual report on Form 20-F 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. For a discussion on such risk
factors, refer to AngloGold Ashanti"s annual report on Form 20-F for the year
ended 31 December 2004, which was filed with the Securities and Exchange
Commission (SEC) on 14July 2005.
Date: 10/02/2006 08:01:13 AM Produced by the JSE SENS Department
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