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2. Revenue
Quarter ended Six months
ended
Jun Mar Jun Jun Jun
2006 2006 2005 2006 2005
Unaudited
SA Rand million
Gold income 4,798 4,246 4,404 9,044 8,261
By-products and other revenue
(note 3) 109 181 121 289 224
Interest receivable 59 30 39 89 93
4,966 4,456 4,563 9,422 8,579
Quarter ended Six months
ended
Jun Mar Jun Jun Jun
2006 2006 2005 2006 2005
Unaudited
US Dollar million
Gold income 740 690 684 1,430 1,326
By-products and other revenue
(note 3) 17 29 19 46 36
Interest receivable 9 5 6 14 15
766 724 708 1,490 1,377
3. Cost of sales
Quarter ended Six months
ended
Jun Mar Jun Jun Jun
2006 2006 2005 2006 2005
Unaudited
SA Rand million
Cash operating costs 2,853 2,635 2,865 5,487 5,619
By-products and other revenue
(note 2) (109) (181) (121) (289) (224)
2,744 2,454 2,744 5,198 5,395
Other cash costs 137 118 92 254 192
Total cash costs 2,881 2,572 2,836 5,453 5,587
Retrenchment costs 13 12 31 25 46
Rehabilitation & other
non-cash costs 25 39 49 64 94
Production costs 2,919 2,623 2,916 5,541 5,727
Amortisation of tangible
assets 951 859 787 1,810 1,519
Amortisation of intangible
assets 3 3 3 6 6
Total production costs 3,873 3,484 3,706 7,358 7,252
Inventory change (327) (21) (86) (348) (216)
3,546 3,463 3,620 7,009 7,036
Quarter ended Six months
ended
Jun Mar Jun Jun Jun
2006 2006 2005 2006 2005
Unaudited
US Dollar million
Cash operating costs 441 428 447 870 906
By-products and other revenue
(note 2) (17) (29) (19) (46) (36)
424 399 428 824 870
Other cash costs 21 19 14 40 31
Total cash costs 445 419 443 864 901
Retrenchment costs 2 2 5 4 7
Rehabilitation & other non-cash
costs 4 6 8 10 15
Production costs 451 427 456 878 923
Amortisation of tangible assets 147 140 123 286 244
Amortisation of intangible assets - - - 1 1
Total production costs 599 567 578 1,166 1,168
Inventory change (52) (4) (14) (56) (35)
547 563 565 1,110 1,133
Rounding of figures may result in computational discrepancies.
4. Other net operating expenses
Quarter ended Six months
ended
Jun Mar Jun Jun Jun
2006 2006 2005 2006 2005
Unaudited
SA Rand million
Pension and medical defined benefit
provisions 19 21 16 40 30
Claims filed by former employees in
respect of loss of employment,
work-
related accident injuries and
diseases, governmental fiscal
claims
18 8 18 26 23
and costs of old tailings
operations
Other 2 1 - 3 -
39 30 34 69 53
Quarter ended Six months
ended
Jun Mar Jun Jun Jun
2006 2006 2005 2006 2005
Unaudited
US Dollar million
Pension and medical defined benefit
provisions 4 3 2 6 5
Claims filed by former employees in
respect of loss of employment,
work-
related accident injuries and
diseases, governmental fiscal
claims
3 1 3 4 3
and costs of old tailings
operations
Other - - - - -
7 4 5 10 8
5. Operating special items
Quarter ended Six months
ended
Jun Mar Jun Jun Jun
2006 2006 2005 2006 2005
Unaudited
SA Rand million
(Under) over provision of indirect
taxes (33) 7 - (25) -
Impairment of tangible assets
(note 8) - (2) (45) (3) (45)
Profit (loss) on disposal of assets
47 6 4 52 1
(note 8)
14 11 (41) 24 (44)
Quarter ended Six months
ended
Jun Mar Jun Jun Jun
2006 2006 2005 2006 2005
Unaudited
US Dollar million
(Under) over provision of indirect
taxes (5) 1 - (4) -
Impairment of tangible assets
(note 8) - - (7) - (7)
Profit (loss) on disposal of assets
7 1 - 8 -
(note 8)
2 2 (7) 4 (7)
6. Taxation
Quarter ended Six months
ended
Jun Mar Jun Jun Jun
2006 2006 2005 2006 2005
Unaudited
SA Rand million
Current tax
Normal taxation (369) (222) 11 (592) (26)
Disposal and impairment of
tangible
assets (note 8) (3) (4) - (6) -
Under provision prior year - - - - (1)
(372) (226) 11 (598) (27)
Deferred taxation
Temporary differences (140) (18) (173) (158) (213)
Impairment of tangible assets
(note 8) - - 15 - 15
Change in tax rate - - 314 - 393
Unrealised non-hedge
derivatives 426 202 (105) 628 (47)
286 184 51 470 148
Total taxation (86) (43) 62 (128) 121
Quarter ended Six months
ended
Jun Mar Jun Jun Jun
2006 2006 2005 2006 2005
Unaudited
US Dollar million
Current tax
Normal taxation (56) (36) 1 (92) (5)
Disposal and impairment of tangible
assets (note 8) - (1) - (1) -
Under provision prior year - - - - -
(56) (37) 1 (93) (5)
Deferred taxation
Temporary differences (22) (3) (25) (25) (31)
Impairment of tangible assets
(note 8) - - 2 - 2
Change in tax rate - - 47 - 59
Unrealised non-hedge derivatives 55 33 (16) 88 (7)
33 30 8 63 23
Total taxation (23) (7) 9 (30) 18
Rounding of figures may result in computational discrepancies.
7. 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 Six months
ended
Jun Mar Jun Jun Jun
2006 2006 2005 2006 2005
Unaudited
SA Rand million
Gold income 10 6 10 16 95
Retrenchment, rehabilitation and
other costs (8) (5) (261) (14) (398)
Gross profit (loss) 2 1 (251) 2 (303)
Impairment loss reversed - - 115 - 115
Profit (loss) before taxation
from
discontinued operations 2 1 (136) 2 (188)
Taxation (5) (8) 67 (13) 67
Net loss attributable to
discontinued
operations (4) (7) (69) (11) (121)
Quarter ended Six months
ended
Jun Mar Jun Jun Jun
2006 2006 2005 2006 2005
Unaudited
US Dollar million
Gold income 2 1 2 3 16
Retrenchment, rehabilitation and
other costs (1) (1) (41) (2) (64)
Gross profit (loss) - - (39) - (48)
Impairment loss reversed - - 17 - 17
Profit (loss) before taxation from
discontinued operations - - (22) - (31)
Taxation (1) (1) 10 (2) 10
Net loss attributable to
discontinued
operations (1) (1) (12) (2) (21)
8. Headline (loss) earnings
Quarter ended Six months
ended
Jun Mar Jun Jun Jun
2006 2006 2005 2006 2005
Unaudited
SA Rand million
The (loss) profit
attributable to equity
shareholders has been
adjusted
by the following to
arrive at
headline (loss) earnings:
(Loss) profit
attributable to equity
shareholders (1,047) (1,074) 566 (2,121) 616
Impairment of tangible
assets (note 5) - 2 45 3 45
(Profit) loss on disposal
of assets
(note 5) (47) (6) (4) (52) (1)
Taxation on items above -
current
portion (note 6) 3 4 - 6 -
Taxation on items above -
deferred
- - (15) - (15)
portion (note 6)
Net loss from
discontinued operations
(note 7) 4 7 69 11 121
Headline (loss) earnings (1,086) (1,067) 661 (2,154) 765
Cents per share (1)
Headline (loss) earnings (398) (403) 250 (801) 289
Quarter ended Six months
ended
Jun Mar Jun Jun Jun
2006 2006 2005 2006 2005
Unaudited
US Dollar million
The (loss) profit attributable
to equity
shareholders has been adjusted
by the following to arrive at
headline (loss) earnings:
(Loss) profit attributable to
equity
shareholders (54) (185) 96 (240) 118
Impairment of tangible assets
(note 5) - - 7 - 7
(Profit) loss on disposal of
assets
(note 5) (7) (1) - (8) -
Taxation on items above - current
portion (note 6) - 1 - 1 -
Taxation on items above -
deferred
- - (2) - (2)
portion (note 6)
Net loss from discontinued
operations
(note 7) 1 1 12 2 21
Headline (loss) earnings (60) (184) 112 (244) 143
Cents per share (1)
Headline (loss) earnings (22) (69) 42 (91) 54
(1) Calculated on the basic weighted average number of ordinary shares.
Rounding of figures may result in computational discrepancies.
9. Shares
Quarter ended
Jun Mar Jun
2006 2006 2005
Authorised:
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 and fully-paid:
Ordinary shares in issue 275,168,569 265,117,213 264,611,494
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 273,028,361 265,064,368 264,556,116
Diluted number of ordinary
shares 273,450,168 265,574,084 265,101,415
Six months ended
Jun Jun
2006 2005
Authorised:
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 and fully-paid:
Ordinary shares in issue 275,168,569 264,611,494
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 269,068,365 264,522,557
Diluted number of ordinary shares 269,631,923 265,069,987
During the quarter, 9,970,732 ordinary shares were allotted in terms of the
subscription offer for cash, as approved by shareholders in general meeting on
10 April 2006, while 80,624 ordinary shares were allotted in terms of the
AngloGold Share Incentive Scheme. All the preference shares are held by a
wholly-owned subsidiary company.
10. Share capital and premium
As at
Jun Mar Jun Dec
2006 2006 2005 2005
Unaudited Audited
SA Rand million
Balance at beginning of period 19,047 19,047 18,987 18,987
Ordinary shares issued 3,018 23 19 60
Translation - - - -
Balance at end of period 22,065 19,070 19,006 19,047
As at
Jun Mar Jun Dec
2006 2006 2005 2005
Unaudited Audited
US Dollar million
Balance at beginning of period 3,002 3,002 3,364 3,364
Ordinary shares issued 504 4 3 9
Translation (418) 85 (524) (371)
Balance at end of period 3,088 3,091 2,843 3,002
Rounding of figures may result in computational discrepancies.
11. Retained earnings and other reserves
Foreign
Retained Non- currency
Earnings distributable translation
reserves reserve
SA Rand million
Balance at December 2004 3,379 138 (3,552)
Actuarial gains and losses
recognised - - -
Deferred taxation recognised
directly in equity - - -
Profit attributable to equity
shareholders 616 - -
Dividends (476) - -
Net gain on cash flow hedges
removed from
equity and reported in income - - -
Net loss on cash flow hedges - - -
Deferred taxation on cash flow
hedges - - -
Loss on available for sale
financial assets - - -
Translation - - 2,657
Balance at June 2005 3,519 138 (895)
Balance at December 2005 1,191 138 (1,910)
Loss attributable to equity
shareholders (2,121) - -
Dividends (164) - -
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 - - -
Gain on available for sale
financial assets - - -
Share-based payment expense - - -
Translation - - 2,536
Balance at June 2006 (1,094) 138 626
US Dollars million
Balance at December 2004 286 24 (317)
Actuarial gains and losses
recognised - - -
Deferred taxation recognised
directly in equity - - -
Profit attributable to equity
shareholders 118 - -
Dividends (80) - -
Net gain on cash flow hedges
removed from
equity and reported in income - - -
Net loss on cash flow hedges - - -
Deferred taxation on cash flow
hedges - - -
Loss on available for sale
financial assets - - -
Translation - (3) 385
Balance at June 2005 324 21 68
Balance at December 2005 (46) 22 (67)
Loss attributable to equity
shareholders (240) - -
Dividends (26) - -
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 - - -
Gain on available for sale
financial assets - - -
Share-based payment expense - - -
Translation - (3) 314
Balance at June 2006 (312) 19 247
Other
Actuarial Comprehen-
gains sive
(losses) income Total
SA Rand million
Balance at December 2004 (122) (1,040) (1,197)
Actuarial gains and losses recognised 40 - 40
Deferred taxation recognised directly
in equity (13) - (13)
Profit attributable to equity
shareholders - - 616
Dividends - - (476)
Net gain on cash flow hedges removed
from
equity and reported in income - (93) (93)
Net loss on cash flow hedges - (116) (116)
Deferred taxation on cash flow hedges - 195 195
Loss on available for sale financial
assets - (2) (2)
Translation (1) (200) 2,456
Balance at June 2005 (96) (1,256) 1,410
Balance at December 2005 (227) (1,655) (2,463)
Loss attributable to equity
shareholders - - (2,121)
Dividends - - (164)
Net loss on cash flow hedges removed
from
equity and reported in income - 609 609
Net loss on cash flow hedges - (1,712) (1,712)
Deferred taxation on cash flow hedges - 343 343
Gain on available for sale financial
assets - 8 8
Share-based payment expense - 15 15
Translation 1 (109) 2,428
Balance at June 2006 (226) (2,501) (3,057)
US Dollars million
Balance at December 2004 (22) (184) (213)
Actuarial gains and losses recognised 7 - 7
Deferred taxation recognised directly
in equity (2) - (2)
Profit attributable to equity
shareholders - - 118
Dividends - - (80)
Net gain on cash flow hedges removed
from
equity and reported in income - (11) (11)
Net loss on cash flow hedges - (17) (17)
Deferred taxation on cash flow hedges - 28 28
Loss on available for sale financial
assets - (2) (2)
Translation 3 (2) 383
Balance at June 2005 (14) (188) 211
Balance at December 2005 (36) (261) (388)
Loss attributable to equity
shareholders - - (240)
Dividends - - (26)
Net loss on cash flow hedges removed
from equity and reported in income - 95 95
Net loss on cash flow hedges - (240) (240)
Deferred taxation on cash flow hedges - 40 40
Gain on available for sale financial
assets - 1 1
Share-based payment expense - 2 2
Translation 4 13 328
Balance at June 2006 (32) (350) (428)
Rounding of figures may result in computational discrepancies.
12. Minority interests
As at
Jun Mar Jun Dec
2006 2006 2005 2005
Unaudited Audited
SA Rand million
Balance at beginning of year 374 374 327 327
Attributable profit 98 40 74 146
Dividends paid (88) (18) (43) (125)
Net loss on cash flow hedges
removed from
5 2 2 4
equity and reported in income
Net loss on cash flow hedges (12) (7) - (9)
Translation 42 (7) 41 31
Balance at end of period 419 384 401 374
As at
Jun Mar Jun Dec
2006 2006 2005 2005
Unaudited Audited
US Dollar million
Balance at beginning of year 59 59 58 58
Attributable profit 16 6 12 23
Dividends paid (14) (3) (7) (20)
Net loss on cash flow hedges
removed from
1 - - 1
equity and reported in income
Net loss on cash flow hedges (2) (1) - (2)
Translation (1) 1 (3) (1)
Balance at end of period 59 62 60 59
13. Exchange rates
Jun Mar Dec Jun
2006 2006 2005 2005
Unaudited Unaudited Audited Unaudited
Rand/US dollar average
for the period 6.31 6.15 6.37 6.21
Rand/US dollar average
for the quarter 6.46 6.15 6.53 6.41
Rand/US dollar closing 7.15 6.17 6.35 6.68
Rand/Australian dollar
average for the period 4.69 4.55 4.85 4.80
Rand/Australian dollar
average for the quarter 4.83 4.55 4.86 4.93
Rand/Australian dollar
closing 5.31 4.39 4.65 5.06
14. Capital commitments
Jun Mar Jun Dec
2006 2006 2005 2005
Unaudited Audited
SA Rand million
Orders placed and outstanding on
capital contracts
at the prevailing rate
of exchange 2,726 2,101 1,312 1,182
Jun Mar Jun Dec
2006 2006 2006 2005
Unaudited Audited
US Dollar million
Orders placed and outstanding on
capital contracts
at the prevailing rate of exchange 382 341 196 186
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.
Rounding of figures may result in computational discrepancies.
15. Contingent liabilities
AngloGold Ashanti"s contingent liabilities at 30 June 2006 are detailed below:
Water pumping cost - South Africa - The South African Department of Water
Affairs and Forestry (DWAF) issued a 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 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.
The mining companies have signed and submitted Settlement and Shareholders"
Agreements to DWAF. The mining companies and government are in the process of
discussing the fulfilment of the conditions precedent in the Agreements. The
Settlement Agreement describes the formation of a "New Water Company", which
will take over the running of the Margaret Shaft from the Stilfontein Gold
Mining Company. The state has requested that the new company be a Section 21
"not for profit company" in order for it to qualify for reduced water tariffs.
The new company will be responsible for the operation of the shaft and the
operation of all pumping equipment at the shaft in order to transfer all
fissure water to surface on a daily basis. Each of the three companies has
agreed to provide one third of the start up capital required on loan account to
the New Water Company. The mining companies will each contribute a maximum of
R18 million capital in the aggregate over a 3-year period. Any additional
working or other capital costs required by the New Water Company will be
borrowed or otherwise obtained from outside sources. In other words the mining
companies are not obliged to contribute more than the R18 million capital. Each
of the mining companies must agree with the contents of a business plan for the
New Water Company. The mining companies will not have any obligation whatsoever
to approve of the Business Plan unless they are satisfied that the New Water
Company will be able to conduct and continue conducting business on a viable
and sustainable basis without any funding being required from the mining
companies other than the R18 million capital provided for in the agreement. At
present it is estimated that a total finance of R54 million is required for the
Margaret Shaft over a three-year period. The Shareholders Agreement provides
for the formation of the New Wa
ter Company, with each mining company nominating
two directors each.
Stilfontein, the owner of the Margaret and Scott Shafts has been placed in
provisional liquidation on the application of a creditor, Mining Reclamation
Services (Pty) Limited. The Master of the High Court has appointed 4 (four)
liquidators. During a meeting held on 21 July the mining companies were advised
that Stilfontein was deregistered as a company at the Company Registrar"s
office after it was placed in provisional liquidation. It is uncertain whether
the deregistration takes precedence over the provisional liquidation. Should
deregistration of Stilfontein be valid then ownership in the assets of the
company vest in the State. If this is the case then the State is free to grant
the New Water Company access to Margaret and Scott Shafts. However should the
liquidation take precedence over the deregistration then the mining companies
will consider purchasing the Margaret and Scott Shafts from the liquidators at
a nominal cost or the cost may be defrayed by the claims that the mining
companies have as creditors of Stilfontein.
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 current 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 had their
service contracts 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.
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 ($14m). The
suretyship agreements have a termination notice period of 90 days.
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 $5m 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. A provision of $2m has been made;
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 approximately $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.
16. 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 $30m at 30 June 2006 (31 March 2006: attributable
$27m). The last audited value added tax return was for the period ended 30
June 2005 and at that date an attributable $20m was still outstanding and an
attributable $10m 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 $14m at 30 June 2006 (31 March 2006: attributable $14m).
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 $7m 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
provided a repayment plan for the amounts due.
17. 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.
18. Borrow ings
AngloGold Ashanti"s borrowings are interest bearing.
19. Announcements
On 10 May 2006, AngloGold Ashanti announced that Kelvin Williams retired from
the board effective 6 May 2006.
On 1 June 2006, AngloGold Ashanti and Bema Gold Corporation announced that they
are to form a new company which will jointly explore a select group of
AngloGold Ashanti"s mineral opportunities located in Northern Colombia, with
initial work focused on the La Mina and El Pino targets. As part of the
agreement, AngloGold Ashanti has initially agreed to provide a minimum of eight
exploration properties while Bema will provide a minimum of $5m in exploration
funding.
On 15 June 2006, AngloGold Ashanti announced the signature of a Letter of
Intent with International Tower Hill Mines Ltd. (ITH), for the sale and option
of AngloGold Ashanti"s 100% interest in six Alaskan mineral exploration
properties and associated databases to ITH. ITH will issue to AngloGold
Ashanti, 19.99% of its issued shares following the acquisition and the
completion of equity financing to raise a minimum of $10m for future
exploration activities. ITH will be required to raise an additional approximate
$6m either prior to or concurrently with the closing of the deal with AngloGold
Ashanti. AngloGold Ashanti will also grant to ITH, the exclusive option to
acquire a 60% interest in each of its LMS and Terra projects by incurring $3m
of exploration expenditure on each project within four years of the grant date
of the option, following which AngloGold Ashanti will have the option to
increase or dilute its stake in these projects, subject to certain conditions.
On 14 July 2006, AngloGold Ashanti announced the signing of a Heads of
Agreement with Antofagasta PLC to jointly explore a highly prospective belt in
Southern Colombia for new gold and copper deposits. AngloGold Ashanti will
include all of its mineral applications, contracts and third party contracts
within the area of interest in the new joint venture, while Antofagasta will
commit to fund a minimum of $1.3m of exploration within 12 months of the
signing of the agreement, with an option to invest an additional $6.7m within
four years in order to earn-in to 50% of the joint venture. Both AngloGold
Ashanti and Antofagasta will have the right to increase their interests by 20%
in copper-dominant and gold-dominant properties subject to certain conditions.
20. Dividend
The directors have today declared Interim Dividend No. 100 of 210 (Interim
Dividend No. 98: 170) South African cents per ordinary share for the six months
ended 30 June 2006. In compliance with the requirements of STRATE, given the
company"s primary listing on the JSE Limited, the salient dates for payment of
the dividend are as follows:
To holders of ordinary shares and to holders of CHESS Depositary Interests
(CDIs)
Each CDI represents one-fifth of an ordinary share.
2006
Currency conversion date for UK pounds, Australian
dollars and Ghanaian cedis Thursday, 10 August
Last date to trade ordinary shares cum dividend Friday, 11 August
Last date to register transfers of certificated
securities cum dividend Friday, 11 August
Ordinary shares trade ex dividend Monday, 14 August
Record date Friday, 18 August
Payment date Friday, 25 August
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 Monday, 14 August
2006 and Friday, 18 August 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, 16 August
Record date Friday, 18 August
Approximate date for currency conversion Friday, 25 August
Approximate payment date of dividend Monday, 4 September
Assuming an exchange rate of R7.025/$1, the dividend payable on an ADS is
equivalent to 29.89 US cents. This compares with the interim dividend of 26.095
US cents per ADS paid on 6 September 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, 11 August
GhDSs trade ex dividend Monday, 14 August
Record date Friday, 18 August
Approximate payment date of dividend Monday, 28 August
Assuming an exchange rate of R1/US Cents1,308.19 the dividend payable per GhDS
is
equivalent to 27.47 cedis. This compares with the interim dividend of
23.818cedis per GhDS paid on 29 August 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%.
21. 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
26 July 2006
Administrative information
ANGLOGOLD ASHANTI LIMITED
Registration No. 1944/017354/06
Incorporated in the Republic of South
Africa
Share codes:
ISIN: ZAE000043485
JSE:
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