ANGLOGOLD ASHANTI LIMITED - Report for the quarter & nine
months ended 30 Sept 2012
ANGLOGOLD ASHANTI LIMITED
Registration No. 1944/017354/06
Incorporated in the Republic of South
Africa
Share codes:
ISIN: ZAE000043485
JSE: ANG
LSE: AGD
NYSE: AU
ASX: AGG
GhSE (Shares): AGA
GhSE (GhDS): AAD
Report for the quarter and nine months ended 30 September 2012
Group results for the quarter…
- Gold production of 1.03Moz, lower-than-anticipated production
from South Africa and Obuasi.
- Total cash costs of $866/oz,
compared with guidance of $835/oz to
$865/oz.
- Adjusted headline earnings of $235m, or 61 US cents a share.
- Quarterly dividend declared of 50 South African cents per
share (approximately 6 US cents per share).
- Capital expenditure cut by $200m to
$2bn - $2.1bn; certain
projects and corporate costs under review.
- Tropicana on track for first production of gold before the end
of next year; Kibali remains on track.
- Technology & Innovation Consortium making good progress on
reef-boring project for South African mines.
- All Injury Frequency Rate (AIFR) the lowest on record at 7.93
per million hours worked.
For the first three quarters…
- Profit attributable to equity shareholders at $1,019m (2011: $1,167m).
- Adjusted headline earnings at $917m (2011: $1,002m).
- EBITDA at $2,065m, compared to
$2,234m during the same period last
year.
- Year to date AIFR of 8.2 per million hours worked, a 16% improvement on
2011 year-end performance.
Quarter Nine months
ended ended ended ended ended
Sep Jun Sep Sep Sep
2012 2012 2011 2012 2011
US dollar / Imperial
Operating review
Gold
Produced - oz (000) 1,030 1,073 1,092 3,084 3,217
Price received 1 - $/oz 1,648 1,607 1,713 1,649 1,539
Total cash costs - $/oz 866 801 737 821 716
Total production
costs - $/oz 1,081 1,002 922 1,027 910
Financial review
Adjusted gross
profit 2 - $m 573 633 816 1,923 1,942
Gross profit - $m 512 633 815 1,862 1,941
Profit
attributable to
equity
shareholders - $m 168 287 456 1,019 1,167
- cents/share 43 74 118 263 302
Headline earnings - $m 178 307 476 1,036 1,194
- cents/share 46 79 123 268 309
Adjusted headline
earnings 3 - $m 235 253 457 917 1,002
- cents/share 61 65 118 237 260
Cash flow from
operating
activities - $m 304 462 863 1,348 2,011
Capital
expenditure - $m 545 451 408 1,350 1,002
Notes:
1. Refer to note C "Non-GAAP $ represents US dollar, unless
otherwise
disclosure" for the definition. stated.
2. Refer to note B "Non-GAAP Rounding of figures may result in
disclosure" for the definition. computational discrepancies.
3. Refer to note A "Non-GAAP
disclosure" for the definition.
Certain statements made in this communication, other than statements of
historical fact, including, without limitation, those concerning the economic
outlook for the gold mining industry, expectations regarding gold prices,
production, cash costs and other operating results, growth prospects and
outlook of AngloGold Ashanti's operations, individually or in the aggregate,
including the achievement of project milestones, the completion and
commencement of commercial operations of certain of AngloGold Ashanti's
exploration and production projects and the completion of acquisitions and
dispositions, AngloGold Ashanti's liquidity and capital resources and capital
expenditures and the outcome and consequence of any potential or pending
litigation or regulatory proceedings or environmental issues, are
forward-looking statements or forecasts regarding AngloGold Ashanti's
operations, economic performance and financial condition. These forward-looking
statements or forecasts involve known and unknown risks, uncertainties and
other factors that may cause AngloGold Ashanti's actual results, performance or
achievements to differ materially from the anticipated results, performance or
achievements expressed or implied in these forward-looking statements. Although
AngloGold Ashanti believes that the expectations reflected in such
forward-looking statements and forecasts 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, social,
political and market conditions, success of business and operating initiatives,
changes in the regulatory environment and other government actions including
environmental approvals and actions, fluctuations in gold prices and exchange
rates, and business and operational risk management. For a discussion of
certain of these and other factors, refer to AngloGold Ashanti's annual report
for the year ended 31 December 2011, which was distributed to shareholders on 4
April 2012, the company's 2011 annual report on Form 20-F, which was filed with
the Securities and Exchange Commission in the United States on 23 April 2012
and the prospectus supplement to the company's prospectus dated 17 July 2012
that was filed with the Securities and Exchange Commission on 25 July 2012.
These factors are not necessarily all of the important factors that could cause
AngloGold Ashanti's actual results to differ materially from those expressed in
any forward-looking statements. Other unknown or unpredictable factors could
also have material adverse effects on future results. Consequently,
stakeholders are cautioned not to place undue reliance on forward-looking
statements. AngloGold Ashanti undertakes no obligation to update publicly or
release any revisions to these forward-looking statements to reflect events or
circumstances after today's date or to reflect the occurrence of unanticipated
events, except to the extent required by applicable law. All subsequent written
or oral forward-looking statements attributable to AngloGold Ashanti or any
person acting on its behalf are qualified by the cautionary statements herein.
This communication may contain certain "Non-GAAP" financial measures. AngloGold
Ashanti utilises certain Non-GAAP performance measures and ratios in managing
its business. Non-GAAP financial measures should be viewed in addition to, and
not as an alternative for, the reported operating results or cash flow from
operations or any other measures of performance prepared in accordance with
IFRS. In addition, the presentation of these measures may not be comparable to
similarly titled measures other
companies may use. AngloGold Ashanti posts information that is important to
investors on the main page of its website at www.anglogoldashanti.com and under
the "Investors" tab on the main page. This information is updated regularly.
Investors should visit this website to obtain important information about
AngloGold Ashanti.
Operations at a glance
for the quarter ended 30 September 2012
Total cash
Production costs
Qtr on Qtr on
Qtr Qtr
Year-on-year % Year-on-year %
Variance Variance
oz (000) % Variance 2 3 $/oz % Variance 2 3
SOUTH AFRICA 373 (5) 3 849 12 9
Great Noligwa 29 16 21 1 047 (17) (7)
Kopanang 48 (38) (14) 1 104 58 27
Moab Khotsong 46 (35) (15) 1 029 44 13
Mponeng 126 8 5 623 6 6
Savuka 10 (23) (17) 1 026 10 16
TauTona 60 3 15 847 (7) (5)
First Uranium SA 14 - - 898 - -
Surface Operations 40 25 (9) 852 (3) 25
CONTINENTAL AFRICA 357 (13) (12) 916 24 11
Ghana
Iduapriem 45 (6) (4) 1 051 22 4
Obuasi 60 (23) (28) 1 167 41 23
Guinea
Siguiri - Attr. 85% 60 7 (10) 985 4 36
Mali
Morila - Attr. 40% 4 18 (25) (18) 780 (5) (10)
Sadiola - Attr. 41% 4 26 (16) 18 963 22 (19)
Yatela - Attr. 40% 4 7 (13) 17 1 790 16 (23)
Namibia
Navachab 15 (6) (29) 1 040 (6) 25
Tanzania
Geita 127 (15) (9) 682 44 8
Non-controlling interests, exploration and
other
AUSTRALASIA 64 28 (10) 937 (40) (21)
Australia
Sunrise Dam 64 28 (10) 891 (43) (19)
Exploration and other
AMERICAS 237 - 2 798 52 19
Argentina
Cerro Vanguardia - Attr. 92.50% 56 8 -
772 161 18
Brazil
AngloGold Ashanti Mineração 91 (10)
(6) 837 51 21
Serra Grande 5 30 100 100 853 (7) (1)
United States of America
Cripple Creek & Victor 60 (13) (6) 725 29 21
Non-controlling interests, exploration and
other
OTHER
Sub-total 1030 (6) (4) 866 18 8
Equity accounted investments included above
AngloGold Ashanti
1 Refer to note B "Non GAAP disclosure" for definition
2 Variance September 2012 quarter on September 2011 quarter - increase
(decrease).
3 Variance September 2012 quarter
on June 2012 quarter - increase
(decrease).
4 Equity accounted joint ventures.
Rounding of figures may result in computational discrepancies.
Operations at a glance Adjusted
gross profit
for the quarter ended 30 September 2012 (loss)
Qtr on
Qtr
Year-on-year
$m
$m Variance Variance
$m 2 3
SOUTH AFRICA 208 (82) 3
Great Noligwa 11 5 5
Kopanang 15 (46) (13)
Moab Khotsong 6 (39) (6)
Mponeng 108 (5) 12
Savuka 4 (7) (3)
TauTona 31 3 12
First Uranium SA 2 2 2
Surface Operations 31 5 (6)
CONTINENTAL AFRICA 197 (128) (47)
Ghana
Iduapriem 20 (12) (1)
Obuasi 14 (33) (20)
Guinea
Siguiri - Attr. 85% 32 (10) (14)
Mali
Morila - Attr. 40% 4 15 (6) -
Sadiola - Attr. 41% 4 15 (12) 6
Yatela - Attr. 40% 4 (1) (2) 4
Namibia
Navachab 4 (3) (9)
Tanzania
Geita 96 (46) (10)
Non-controlling interests, exploration and 4 (2) (1)
other
AUSTRALASIA 36 36 11
Australia
Sunrise Dam 40 39 9
Exploration and other (3) (3) 3
AMERICAS 154 (98) (9)
Argentina
Cerro Vanguardia - Attr. 92.50% 44 (20) 3
Brazil
AngloGold Ashanti Mineração 37 (61) (17)
Serra Grande 5 18 9 10
United States of America
Cripple Creek & Victor 52 (16) 1
Non-controlling interests, exploration and 3 (10) (7)
other
OTHER 6 10 (9)
Sub-total 601 (263) (51)
Equity accounted investments included above (28) 20 (9)
AngloGold Ashanti 573 (243) (60)
1 Refer to note B "Non GAAP disclosure" for definition
2 Variance September 2012 quarter
on September 2011 quarter - increase
(decrease).
3 Variance September 2012 quarter
on June 2012 quarter - increase
(decrease).
4 Equity accounted joint ventures.
5 Effective 1 July 2012, AngloGold
Ashanti increased its shareholding in Serra Grande from 50% to
100%.
Rounding of figures may result in computational
discrepancies.
Financial and Operating Report
OVERVIEW FOR THE QUARTER
FINANCIAL AND CORPORATE REVIEW
The current quarter's adjusted headline earnings (AHE) of $235m or 61 US cents
per share is lower, when compared with $457m or 118 US cents per share recorded
in the third quarter of 2011. The decline is principally due to a 6% drop in
gold production, a $65/oz lower gold price, higher cash costs associated with
inflation including wage increases, lower grades and by-product credits,
increased exploration and study costs, and higher finance charges. These
adverse impacts were partially mitigated by the deferred tax credit of $58m
from the Serra Grande tax restructuring.
When compared to the June 2012 quarter, AHE declined by 7% primarily due to 4%
lower production, higher unit costs (wage increases and winter power tariffs in
the South African region and, for the wage increases, also in the Americas),
lower by-product credits, increased exploration and study costs, and higher
finance charges.
Profit attributable to equity shareholders for the third quarter was $168m and
year-to-date amounted to $1,019m compared to $1,167m for the year-to-date last
year. The third quarter net profit of $168m was 41% or $119m lower than the
June quarter due to higher costs, increased exploration and study costs, higher
finance costs and fair value losses relating to the convertible bonds and
commodity contracts. These factors were partly mitigated by the deferred tax
credit from the Serra Grande tax restructuring. Cash flow generated from
operating activities was $304m during the third quarter, compared with $863m a
year earlier. Capital expenditure was $545m (including equity accounted joint
ventures) for the September 2012 quarter compared to $408m for the September
2011 quarter. Net debt increased from $879m at the end of the second quarter to
$1,569m at the end of September following the completion of the acquisition of
First Uranium's Mine Waste Solutions for $335m on 20 July 2012, and higher
capital expenditure. AngloGold Ashanti expects net debt to increase by year-end
given its project capital expenditure profile.
SOUTH AFRICA
Following a wave of labour unrest and unprotected strike action that took place
throughout South Africa since early August, workers at AngloGold Ashanti's
Kopanang mine embarked on an unprotected strike on 20 September, preventing the
commencement of the night shift on 20 September. Workers at the three West Wits
and balance of the Vaal River regions' operations joined the unprotected work
stoppage on 25 September.
The company worked throughout this challenging period to find a mutually
agreeable solution to the unprocedural work stoppage, which cost approximately
32,000oz a week in lost production while the entire South African portfolio
remained idle. AngloGold Ashanti, along with its major gold-producing peers in
South Africa, used the Entry Level Task Team, established in the 2011
collective wage negotiation process to: increase the entry-level pay of
employees; establish a new pay category for equipment operators; provide an
allowance for rock-drill operators; and increase pay by 2% for most categories
of worker. The net impact of this settlement on the payroll cost for AngloGold
Ashanti is $16m per annum.
Striking employees at the Kopanang and Great Noligwa mines, as well as the
surface operations, started returning to work on Monday 22 October while Moab
Khotsong followed a day later. The situation at those mines, as well as all
surface operations, remains normal and they are in the process of ramping up to
full production.
On Friday 26 October following extensive dialogue between AngloGold Ashanti's
regional management and employees, most of the striking workforce returned to
the three West Wits mines. TauTona, however, was again disrupted by an
underground sit-in on 1 November where employees demanded early payment of a
safety incentive, which was offered to help ensure the safe restart of the
mine. A day later, Mponeng's normal operations were disrupted by a similar
sit-in. This occurred again on 5 November at Mponeng, with threats made by
striking miners to their colleagues. In both cases, damage was caused to
company property. In the wake of this second disruption at Mponeng, a decision
was taken to suspend operations at the mine given that AngloGold Ashanti was
unable to ensure the safety of staff. Striking employees will again receive no
pay while the situation persists and the mine will remain closed until
assurances can be received that normal, safe operations can resume. These work
stoppages on the world's deepest underground mines, which have started suddenly
and have lasted five weeks (and longer in the case of Mponeng), are
unprecedented and pose significant safety risks and operating challenges.
AngloGold Ashanti continues to take every precaution to ensure the operations
are restarted safely and that the ore bodies are not compromised.
As of 2 November, AngloGold Ashanti estimates the strike had cost about
250,000oz of lost production during the fourth quarter due to the work
stoppages and also in the slow ramp up to full production. While concerted
efforts are being made to end the impasse at Mponeng, and to prevent it from
spreading to neighbouring operations, the continued disruption will further
exacerbate the production losses. The lower volumes will have a commensurate
impact on regional and group unit cash costs.
CORPORATE UPDATE
AngloGold Ashanti's management has moved decisively to counter the impact of
the strike, in order to maintain appropriate financial flexibility. Capital
expenditure for 2012 has been reduced by $200m and is now estimated at $2bn to
$2.1bn. A study of all corporate and operating costs is currently being
conducted. AngloGold Ashanti's industry leading exploration programme is being
focused on key, high-potential projects and capital projects are being
reviewed. At Mongbwalu, in the Democratic Republic of Congo, the development
schedule is being reviewed in order to provide time to assess additional
discoveries that have been made. Development of the Sadiola Deep Sulphides
project is being slowed, as are the life extension projects at Moab Khotsong
and Mponeng in South Africa. Also in South Africa, production plans are being
reviewed to focus the existing operations on higher margin, higher quality
operations. Additional detail will be provided along with fourth-quarter and
full-year operating and financial results in early 2013, when AngloGold Ashanti
traditionally provides production, capital expenditure and cost forecasts for
the year ahead.
DIVIDEND
The company remains committed to focusing on the cash returns to shareholders
whilst, as previously stated, considering cash flow, investment needs and the
financial strength of the business in the context of delivering on its business
plan and strategic growth objectives. The unprotected strike action at the
South African operations, which started late in the third quarter and continued
through much of the fourth quarter to date, have had an adverse impact on the
quarter three results and will significantly impact the quarter four results.
On 17 October 2012, following the downgrade of the South African sovereign
ratings, Standard and Poor's announced that the company is being placed on
credit watch negative, which may result in downgrading the company's credit
rating below investment grade. On the basis of these developments and
management's efforts to effect cuts in expenditures whilst retaining confidence
in the long term outlook, the Board has reduced the quarter three dividend to
50 South African cents per share. It is expected that the dividend will be at a
similar level in the fourth quarter assuming that the unprotected strike action
is speedily resolved, before moving back in line with long term operating and
financial performance in 2013.
SAFETY
Tragically, four fatal incidents were reported during the quarter. Safety
remains the highest priority across the organisation and the focus remains on
improving safety throughout the organisation through various programmes and
initiatives including the on-going implementation of Project ONE, incident risk
protocols and risk management training. As a result, overall safety performance
continues to improve. The All Injury Frequency Rate (AIFR) in the third quarter
was the lowest quarterly rate on record for the organisation at 7.93 per
million hours worked. Year-to-date, the AIFR was 8.2 per million hours worked,
a 16% improvement when compared to the 2011 year-end performance, and all
regions reflect double digit improvement in AIFR against 2011 year-end
performance. Notably, Kopanang achieved 1,000,000 fatality free shifts and
Yatela remains injury free for 2012.
OPERATING REVIEW
Production for the three months to 30 September 2012 was 1.03Moz at a total
cash cost of $866/oz compared to 1.09Moz at a total cash cost of $737/oz for
the three months to 30 September 2011. This compares with guidance for the
period of 1.07Moz to 1.10Moz at a total cash cost of $835/oz to $865/oz. Output
was affected primarily by labour unrest in South Africa and
lower-than-anticipated performance from the Obuasi mine in Ghana. Lower volumes
had an adverse effect on unit total cash costs.
The South African operations produced 373,000oz at a total cash cost of $849/oz
in the three months to 30 September 2012 compared with 394,000oz at a total
cash cost of $757/oz a year earlier. The year-on-year performance was impacted
by labour unrest in South Africa, where absenteeism and work stoppages in the
immediate aftermath of the Marikana shooting on 16 August, and the strike that
started at Kopanang on 20 September and spread to the remainder of the South
African operations on 25 September, affected production. The performance was
also adversely affected by winter power-tariff increases in South Africa;
increased seismic activity in the West Wits area; reduced volumes mined coupled
with lower mining grades in the Vaal River district; inflationary pressures and
continued safety-related stoppages through the quarter.
At the West Wits operations, Mponeng's production increased by 8% year-on-year
to 126,000oz due to improved volumes, as the same quarter last year was
negatively impacted by safety stoppages. Total cash costs rose 6% to $623/oz
year-on- year as a result of continued efforts to improve in-stope safety. At
neighbouring TauTona, output increased from a year earlier to 60,000oz, mainly
as a result of improved volumes mined. Total cash costs decreased by 7% to $847
/oz due to improved production, cost savings initiatives and vigorous cost
management. The full implementation of Project ONE has resulted in production
improvements through the completion of Simunye training, shaft optimisation and
shaft compliance. The stabilisation of the Vertical Transport and Turbo areas
has resulted in cost improvements due to restructuring of work.
The Vaal River Operations, particularly Moab Khotsong, were severely impacted
by safety-related stoppages along with mining flexibility constraints and the
industrial strike action. Gold production at Moab Khotsong fell by 35% from a
year earlier to 46,000oz principally due to the above mentioned operational
issues as well as a 10% reduction in grade with a 44% rise in total cash cost
to $1,029/oz. The successful implementation of a work management system and
recovery plan at Great Noligwa resulted in a 16% year-on-year increase in
production to 29,000oz. At the same time, total cash costs decreased by 17% to
$1,047/oz. Kopanang, adversely affected by mining flexibility issues and lower
mining grades, experienced a 38% year-on-year decline in production to 48,000oz
while total cash costs rose by 58% to $1,104/oz.
Surface Operations production rose by 25% to 40,000oz whilst
total cash costs decreased by 3% to $852/oz.
The production business units completed the first of a series of engagement
workshops to improve working relationships. To address the skills level of
middle managers, an Advanced Mine Overseers training programme is expected to
be rolled out upon finalisation of the programme, following excellent results
in its pilot phase. Simunye training, to improve safety and production of all
production teams is progressing well with 61% of all stoping crews trained.
The Continental Africa Region operations produced 357,000oz at a
total cash cost of $916/oz in the
third quarter of 2012,compared with 411,000oz at a total cash cost
of $739/oz reported in the third
quarter of 2011.
In Tanzania, production at Geita was 15% lower than the same period last year
at 127,000oz as mining grades normalised to plan, partly mitigated by an
increase in tonnage throughput. Total cash costs increased, when compared to
the same period last year, by 44% to $682/oz due to the lower production and
increases in mining contract rates.
In Ghana, production at Iduapriem was 45,000oz, 6% lower than the third quarter
in 2011 due to delays in accessing higher grade areas and increased
environmental compliance costs. Total cash costs were higher at $1,051/oz
primarily due to the lower production. At Obuasi, production was 23% lower than
a year earlier at 60,000oz due to development of ore stopes being behind
schedule with a resultant delay in access to average reserve grade ore.
Consequently, total cash costs rose 41% to $1,167/oz. The decision to terminate
the relationship with the development contractor was announced during October,
given that sub-par development performance has been identified as a key
constraint to the mine's performance in recent years. AngloGold Ashanti is
expected to assume operational accountability for development at the mine after
the required 28-day notice period. The costs of the termination and
consequential impact will be reflected in the fourth quarter financials.
In Guinea, Siguiri's production
rose 7% year-on-year to 60,000oz as tonnage throughput was
sustained at the higher levels achieved in the previous quarter.
Total cash costs were 4% higher at $985/oz.
In Mali, Morila's production was 25% lower year-on-year at 18,000oz as the
higher grade ore stockpiles were fully depleted and processing of the marginal
grade stockpiles commenced. Despite the lower year-on-year production, total
cash costs decreased by 5% to $780/oz. Sadiola, which continues to be affected
by lower grades and transition ore, had production 16% lower than the same
quarter in the prior year at 26,000oz, and its total cash costs increased by
22% to $963/oz, primarily as a result of the lower production.
In Namibia, Navachab's production was 15,000oz, 6% lower than the same period
last year, reflecting a decrease in tonnage as a result of industrial action in
the quarter that impacted normal operations. Total cash costs averaged $1,040/
oz.
The Americas region produced 237,000oz of gold at a total cash cost of $798/oz
in the third quarter of 2012, compared with 238,000oz at a total cash cost of
$524/oz a year earlier.
At Cripple Creek & Victor gold production was 60,000oz which was 13% lower than
the third quarter in 2011, while cash cost increased by 29% to $725/oz
primarily due to higher cost ounces placed on the heap leach pad. Cripple Creek
& Victor received two critical approvals related to Mine Life Extension 2 (MLE
2) project.
At AngloGold Ashanti Brasil Mineração, production was 10% lower than the same
quarter last year at 91,000oz with lower production from Cuiabá due to
geotechnical issues and lower equipment availability. At the Córrego do Sítio
operation, the sulphide plant reached stabilization in August and mine ramp up
continues toward full production which is expected by the end of the year.
Total cash cost rose 51% to $837/oz as a consequence of lower gold produced and
higher labour costs due to the annual collective agreement in August, as well
as ore stockpile and gold in process movements. At Serra Grande, production was
100% higher than the prior year at 30,000oz following the acquisition of the
remaining 50% stake in the mine on 28 June 2012. Total cash cost was 7% lower
at $853/oz as a result of ore stockpile and gold in process movements and the
weakening real. This was partially offset by higher labour costs due to the
annual collective agreement in August and higher development costs.
In Argentina, at Cerro Vanguardia, attributable gold production at 56,000oz was
8% higher than the same quarter last year as a consequence of an increase in
tonnage throughput. Attributable silver production at 516,000oz represents a 3%
increase compared to the previous quarter. Total cash cost at the operation was
$772/oz. Costs were impacted by continuing local inflation issues.
In Australasia production at Sunrise Dam increased by 28% year-on-year to
64,000oz with total cash costs decreasing 43% to $891/oz. Cash costs saw a $30m
(A$29m) credit due to the receipt of insurance claim funds relating to the pit
wall failure. During the quarter, a total of 172m of underground capital
development and 2,695m of operational development were completed during the
quarter.
PROJECTS
AngloGold Ashanti incurred capital expenditure of $545m (including
equity-accounted joint ventures) during the quarter, of which $262m was spent
on growth projects. Of the growth related capital $21m was spent in the
Americas, $116m was spent in Continental Africa, $73m in Australasia and $52m
in South Africa.
The Kibali project, the joint venture between state-owned Sokimo (10%),
AngloGold Ashanti (45%) and operator Randgold Resources (45%), is expected to
require attributable project capital expenditure of $982m (including
contingencies and escalation), to fund development of the open pit and
underground mines, as well as associated infrastructure, with first gold from
the open pit targeted for late next year. Year-to-date, AngloGold Ashanti has
spent $137m towards the development of the Kibali project which continued to
make steady progress in line with the development schedule. Bulk earthworks and
civil works progressed with the first concrete pour to the mill achieved at the
end of the quarter. The Relocation Action Plan (RAP) continues in earnest with
the completion of repairs to the houses impacted by storm damage together with
planned construction of the remaining houses. A total of 1,554 houses have been
constructed to date.
Tropicana Gold Project continues to make steady progress towards its first
production expected by year-end 2013. The key activities that drove project
expenditure in the September quarter included infrastructure construction
focused on village installation, bore field pipeline, structural steel
buildings and administration facilities, with plant construction works
including concrete, tankage and the commencement of structural steel. The
project is progressing well, and is 64% complete. Design and procurement
activities are complete and the focus is aimed at expediting and managing the
respective site based contractors to ensure delivery of work in line with
project expectations. Subsequent to the last update, the Electrical and
Instrumentation (E&I) contract was awarded and the last main contract, the
Tailings Storage Facility (TSF) construction contract, was tendered. The E&I
contract was within the forecast and the opening bids for the TSF contract were
within the forecast, providing additional confidence in the capital cost
forecast.
Technology and Innovation Project
AngloGold Ashanti's Technology & Innovation Consortium continued to clear
technical hurdles on the path to creating a safe, automated mining method
intended for use at AngloGold Ashanti's deep-level underground mining
operations. During the third quarter, the team completed three raise bore holes
on reef at the 97 level site at TauTona. The remaining two holes planned for
the year will focus on improving the speed of the drilling process. Substantial
headway in the design and testing of ultra high strength backfill has also been
achieved. Initial surface pumping trial has proven that the 160Mpa strength mix
design could be pumped over a horizontal distance of 40m and a height of 3m.
EXPLORATION
Total exploration expenditure during the third quarter, inclusive of
expenditure at equity accounted joint ventures, was $107m ($33m on brownfield,
$35m on greenfield and $39m on pre-feasibility studies), compared with $96m in
the third quarter of 2011 ($35m on brownfield, $33m on greenfield, and $28m on
pre-feasibility studies). The following are highlights from the company's
exploration activities during the quarter.
Greenfield exploration activities were undertaken in six regions (Australia,
Americas, Pacific, Sub-Saharan Africa and the Middle East & North Africa)
during the third quarter of 2012. A total of 105,673 metres of diamond, RC and
aircore drilling was completed on existing priority targets and used to
delineate new targets in Australia, Colombia, Brazil, Guinea, Tanzania, Egypt,
the Solomon Islands and the DRC.
In Colombia, exploration included diamond drilling at the Nuevo Chaquiro target
on the Quebradona project, a joint venture between AngloGold Ashanti (69.6%)
and B2Gold (30.4%). A total of 3,406m was drilled, targeting porphyry Au-Cu-Mo
and associated epithermal mineralisation. To date, mineralisation has been
traced to depths approaching 1,500m.
At La Colosa, drilling continued for geotechnical and hydrological studies, and
the continuity of the structurally controlled high grade core was established.
The four drills operating during the quarter completed 12,700m, including 310m
@ 1.98g/t from 20m. Positive assay results continued to return from holes
drilled previously in 2012 with Borehole COL148 returning a value of 1.84g/t
over 201m from a depth of 400m.
In Australia, encouraging
results have been returned for first pass aircore drilling at the
Beaker prospect, within the Viking project (AGA 100%) and include
9m @ 1.74g/t Au, 3m @ 9.07g/t Au and 3m @ 3.17g/t Au. Results are
still awaited for the recently completed diamond drilling
programme.
At Tropicana, drilling for the Havana Deeps Prefeasibility Study was completed
during the quarter with 2,183m of diamond drilling. All assay results have been
returned and have been incorporated into the geological model. Two encouraging
results were received from holes at the north eastern limit of drilling at
Havana (18m @ 5.4g/t Au from 500m and 5m @ 9.0g/t Au from 560m). These indicate
the potential for a third high grade shoot at Havana.
A Mineral Resource model update is targeted for completion by year end, with
this forming the basis for open pit and underground mining studies scheduled to
be undertaken during 2013. Study work has commenced with metallurgical testing
underway and mining and geotechnical review commenced.
In Guinea, exploration work focussed on the Kounkoun trend in Block 3, with
infill and delineation drilling. Resource modelling is in progress for Saraya
in Block 2, while reconnaissance drilling will commence over Block 4 after the
wet season in the fourth quarter. At Kounkoun Central and Kounkoun South, a
total of 14,894m of drilling was completed; comprising 8,434m aircore, 6,460m
of RC, and follows previously delineated mineralised zones. The best results
include, but are not limited to (true widths), 46.04m @ 2.11g/t Au from 12m in
KKAC559, 29.13m @ 2.74g/t Au from 144.5m in KKDD008, 23m @ 1.84g/t Au from 11m
in KKRC124, 29.7m @ 1.18g/t Au from 45m in KKAC593, 15.97m @ 2.23g/t Au from
43m in KKRC084 and 10.34m @ 3.07g/t Au from 35m in KKAC580.
At Siguiri, a total of 33,707m of drilling was completed, with about two-thirds
of RC drilling focused on upgrading oxide Mineral Resources around Kozan,
Soloni, Kossise NE, Kalamagna and Tubani-Bidini. The Kozan and Soloni infill
drilling areas consistently returned some good intersections during the
quarter, while the infill programme in the gap between Tubani and Bidini
confirmed the continuous nature of the steeply dipping ore bodies. Infill
drilling at Kossise NE successfully targeted the extensions of steeply dipping
NE trending mineralised faults identified by the CET research group in the
Kossise pit in 2011.
At Geita, drilling programmes focused on capitalised infill drilling programmes
(13,067m) at Geita Hill East and West, Nyankanga Blocks 1, 2 and cut 7, Ridge 8
and Star Comet-Ridge 8 gap. Expensed drilling (13,167m) was undertaken at
Nyankanga Block 4 Gap and the refractory ore Mineral Resource delineation at
Kukuluma - Matendani - Area 3 drilling projects.
Assay results for DD & RC infill holes indicated positive intersections. For
Nyankanga, Geita Hill and Ridge 8 the received results confirmed the
continuation of the ore body as expected. For Star & Comet extension, for most
sections drilled the orezone widened with respect to the existing ore
boundaries. Sterilisation drilling (1,860m) for Geita Hill waste dump area was
completed.
At Navachab in Namibia, seven
diamond drill holes (2,908m) were completed during the quarter in
the NP3 area targeting the FW main shoot veins down plunge
extension. Assays returned in the quarter show some high Au
intersections of nearly 40m thickness (e.g. N868 39.47m @ 3.12g/t
Au from 74.37m).
In Egypt at Hutite, 4,235m of diamond and RC drilling was completed from the
Central Domain and the best results include: 9m @ 10.8g/t Au from 259m in
HUD057, 7m @ 4.2g/t Au from 280m in HUD058, 9m @ 5.4g/t Au from 59m in HUD061,
25m @ 1.82g/t Au from 118m in HUD060 and 4m @ 7.88g/t Au from 189m in HUD067.
The first six deep holes to depths of 600m below surface have been completed
and results will be reported in the fourth quarter 2012.
More detail on AngloGold Ashanti's exploration programme can be
found at www.anglogoldashanti.com. An updated Reserve and Resources
Statement will be published with our full-year financial report at
the end of the financial year.
OUTLOOK
Given the continued work stoppage at the Mponeng mine and the uncertainty
around the timing of a resolution and also the consequent ramp-up of
production, AngloGold Ashanti believes it prudent to withhold quarterly cost
and production guidance for the fourth quarter at this time. Once a resolution
is reached, normal work patterns have resumed and there is greater visibility
of future production, the company will review this position. As in prior years,
the fourth quarter earnings will be distorted by year-end accounting
adjustments such as reassessment of useful lives, re-set of environment and
rehabilitation provisions, direct and indirect tax and inventory provisions. In
addition the fourth quarter 2012 will also include the adverse impact of the
South African strikes and the cost of changeover of the Obuasi mining contract.
Group income statement
Quarter Quarter Quarter Nine months Nine months
ended ended ended ended ended
September June September September September
2012 2012 2011 2012 2011
US Dollar million Notes Reviewed Reviewed Reviewed Reviewed Reviewed
Revenue 2 1 664 1 684 1 873 5 142 5 066
Gold income 1 629 1 619 1 793 4 955 4 791
Cost of sales 3 (1 056) (986) (977) (3 032) (2 849)
Loss on non-hedge derivatives and
other commodity contracts (61) - (1) (61) (1)
Gross profit 512 633 815 1862 1 941
Corporate administration, marketing
and other expenses (70) (69) (67) (207) (201)
Exploration and evaluation costs (107) (88) (76)
(271) (196)
Other operating expenses 4 (5) (28) (11) (40) (32)
Special items 5 (25) 8 (13) - 18
Operating profit 305 456 648 1 344 1 530
Dividends received 7 - - 7 -
Interest received 10 9 10 31 29
Exchange gain 1 8 15 7 12
Fair value adjustment on option
component of convertible bonds (2) 24 11
66 98
Finance costs and unwinding of
obligations 6 (65) (49) (48) (163) (148)
Fair value adjustment on mandatory
convertible bonds (11) 29 9 97 95
Share of equity-accounted
investments' (loss) profit - (6) 24 16 57
Profit before taxation 245 471 669 1 405 1 673
Taxation 7 (76) (186) (204) (373) (477)
Profit for the period 169 285 465 1 032 1 196
Allocated as follows:
Equity shareholders 168 287 456 1 019 1 167
Non-controlling interests 1 (2) 9 13 29
169 285 465 1 032 1 196
Basic earnings per ordinary share
(cents) (1) 43 74 118 263 302
Diluted earnings per ordinary share
(cents) (2)(3) 43 61 109 220 248
(1) Calculated on the basic weighted average number of ordinary
shares.
(2) Calculated on the diluted weighted average number of
ordinary shares.
(3) Restated - refer note 8
Rounding of figures may result in computational
discrepancies.
The reviewed financial statements for the quarter and nine months ended 30
September 2012 have been prepared by the corporate accounting staff of
AngloGold Ashanti Limited headed by Mr John Edwin Staples, the Group's Chief
Accounting Officer. This process was supervised by Mr Mark Cutifani, the
Group's Chief Executive Officer and Mr Srinivasan Venkatakrishnan, the Group's
Chief Financial Officer. The financial statements for the quarter and nine
months ended 30 September 2012 were reviewed, but not audited, by the Group's
statutory auditors, Ernst & Young Inc. A copy of their unmodified review
report is available for inspection at the company's head office.
Group statement of comprehensive income
Quarter Quarter
Quarter Nine months Nine months
ended ended ended ended ended
September June September September September
2012 2012 2011 2012 2011
US Dollar million Reviewed Reviewed Reviewed Reviewed Reviewed
Profit for the period 169 285 465 1032 1196
Exchange differences on translation of foreign
operations (24) (128) (389) (57) (412)
Share of equity-accounted investments' other
comprehensive loss - - - - (1)
Net loss on available-for-sale financial assets (6) (12)
(42) (17) (71)
Release on impairment of available-for-sale
financial assets 3 - 17 4 19
Deferred taxation thereon (1) 5
(11) 4 (11)
(4) (7) (36) (9) (63)
Deferred taxation rate change on actuarial losses - -
- (9) -
Other comprehensive loss for the period net of tax (28) (135)
(425) (75) (476)
Total comprehensive income for the period net of
tax 141 150 40 957 720
Allocated as follows:
Equity shareholders 140 152 31 944 691
Non-controlling interests 1 (2)
9 13 29
141 150 40 957 720
Rounding of figures may result in computational discrepancies.
Group statement of financial position
As at As at As at As at
September June December September
2012 2012 2011 2011
US Dollar million Note
Reviewed Reviewed Audited Reviewed
ASSETS
Non-current assets
Tangible assets 7 620 6 789 6 525 6 042
Intangible assets 289 243 210 191
Investments in equity-accounted associates and joint ventures 928 835 702 692
Other investments 175 178 186 193
Inventories 589 454 410 407
Trade and other receivables
85 81 76 116
Deferred taxation 160 61 79 69
Cash restricted for use 32 24 23 22
Other non-current assets 9 9 9 9
9 887 8 674 8 220 7 741
Current assets
Inventories 1 220 1 138 1 064 959
Trade and other receivables
557 460 350 279
Current portion of other non-current assets
- - - 1
Cash restricted for use
61 32 35 38
Cash and cash equivalents 1 123 987 1 112 1 075
2 961 2 617 2 561 2 352
Non-current assets held for sale
1 2 21 1
2 962 2 619 2 582 2 353
TOTAL ASSETS 12 849 11 293 10 802 10 094
EQUITY AND LIABILITIES
Share capital and premium 10 6721 6 711 6 689 6 660
Retained earnings and other reserves (1 040) (1 135) (1 660) (2 015)
Shareholders' equity 5 681 5 576 5 029 4 645
Non-controlling interests
61 61 137 133
Total equity 5 742 5 637 5 166 4 778
Non-current liabilities
Borrowings 2 708 2 492 2 456 2 439
Environmental rehabilitation and other provisions 1
234 795 782 597
Provision for pension and post-retirement benefits
214 217 195 164
Trade, other payables and deferred income
12 14 14 16
Derivatives 28 26 93 78
Deferred taxation 1 215 1 149 1 158 1 051
5 411 4 693 4 698 4 345
Current liabilities
Current portion of borrowings
713 32 32 47
Trade, other payables and deferred income 829 732 751 712
Taxation 154 199 155 212
1 696 963 938 971
Total liabilities 7 107 5 656 5 636 5 316
TOTAL EQUITY AND LIABILITIES 12
849 11 293 10 802 10 094
Rounding of figures may result in computational discrepancies.
Group statement of cash flows
Quarter Quarter Quarter Nine months Nine months
ended ended ended ended ended
September June September September September
2012 2012 2011 2012 2011
US Dollar million Note Reviewed Reviewed Reviewed Reviewed Reviewed
Cash flows from operating activities
Receipts from customers 1 603 1 691 1 875 5 052 4 967
Payments to suppliers and employees (1
149) (1 106) (988) (3 339) (2 864)
Cash generated from operations
454 585 887 1 713 2 103
Dividends received from equity-accounted joint ventures
14 20 34 54 78
Taxation refund - - 1 - 96
Taxation paid (164) (143) (59) (419) (266)
Net cash inflow from operating activities
304 462 863 1 348 2 011
Cash flows from investing activities
Capital expenditure (448) (374) (382) (1 135) (939)
Interest capitalised and paid (4) (2) - (8) -
Expenditure on intangible assets
(24) (20) (6) (52) (6)
Proceeds from disposal of tangible assets
2 1 4 4 12
Other investments acquired (18) (23) (74) (80) (135)
Proceeds from disposal of investments
17 19 37 73 79
Investments in equity-accounted associates and joint ventures
(106) (66) (31) (217) (80)
Proceeds from disposal of equity-accounted joint venture - - - 20 -
Loans advanced to equity-accounted associates and joint
ventures (1) (48) (10) (64) (13)
Loans repaid by equity-accounted associates and joint ventures
- 1 - 1 -
Dividends received 1 1 - 1 -
Proceeds from disposal of subsidiary - - - - 9
Cash in subsidiary acquired (disposed) 5 - - 5 (11)
Acquisition of subsidiary and loan 13 (335) - - (335) -
(Increase) decrease in cash restricted for use (33) 20 (9) (31) (22)
Interest received 7 8 11 26 29
Repayment of loans advanced - - 2 - 3
Net cash outflow from investing activities
(937) (483) (458) (1 792) (1 074)
Cash flows from financing activities
Proceeds from issue of share capital
1 - 2 2 3
Proceeds from borrowings 1 061 150 101 1 212 106
Repayment of borrowings (203) (4) (104) (212) (259)
Finance costs paid (17) (57) (14) (89) (89)
Acquisition of non-controlling interest - (215) - (215) -
Revolving credit facility and bond transaction costs (21) - - (29) -
Dividends paid (46) (66) (50) (214) (103)
Net cash inflow (outflow) from financing activities
775 (192) (65) 455 (342)
Net increase (decrease) in cash and cash equivalents 142 (213) 340 11 595
Translation (6) (16) (104) - (106)
Cash and cash equivalents at beginning of period
987 1 216 839 1 112 586
Cash and cash equivalents at end of period 1
123 987 1 075 1 123 1 075
Cash generated from operations
Profit before taxation 245 471 669 1 405 1 673
Adjusted for:
Movement on non-hedge derivatives and other commodity
contracts 61 - 1 61 1
Amortisation of tangible assets
202 195 192 588 565
Finance costs and unwinding of obligations
65 49 48 163 148
Environmental, rehabilitation and other expenditure (2) 5 (6) (2) 29
Special items 10 2 23 13 44
Amortisation of intangible assets
1 1 1 3 2
Deferred stripping (7) 2 (1) (11) 26
Fair value adjustment on option component of convertible bonds
2 (24) (11) (66) (98)
Fair value adjustment on mandatory convertible bonds
11 (29) (9) (97) (95)
Interest received (10) (9) (10) (31) (29)
Share of equity-accounted investments' loss (profit)
- 6 (24) (16) (57)
Other non-cash movements 5 27 (4) 55 15
Movements in working capital (129) (111) 18 (352) (121)
454 585 887 1 713 2 103
Movements in working capital
Increase in inventories (87) (92) (15) (209) (123)
(Increase) decrease in trade and other receivables
(90) (37) 73 (181) (8)
Increase (decrease) in trade and other payables
48 18 (40) 38 10
(129) (111) 18 (352) (121)
Rounding of figures may result in computational discrepancies.
Group statement of changes in equity
Share Cash Available
capital Other flow for
and capital Retained hedge sale
US Dollar million premium reserves earnings reserve reserve
Balance at 31 December 2010 6 627 194 (2 750) (2) 86
Profit for the period 1 167
Other comprehensive loss (1) (63)
Total comprehensive (loss) income - (1) 1 167
- (63)
Shares issued 33
Share-based payment for share awards net of
exercised 14
Dividends paid (89)
Dividends of subsidiaries
Translation (32) 30 (1)
Balance at 30 September 2011 6 660 175 (1 642)
(2) 22
Balance at 31 December 2011 6 689 171 (1 300)
(2) 18
Profit for the period 1 019
Other comprehensive loss (9)
Total comprehensive income (loss) - - 1 019
- (9)
Shares issued 32
Share-based payment for share awards net of
exercised 12
Acquisition of non-controlling interest (144)
Dividends paid (193)
Dividends of subsidiaries
Translation (6) 3 1
Balance at 30 September 2012 6 721 177 (615) (2) 10
Rounding of figures may result in computational discrepancies.
Group statement of changes in equity
Foreign
Actuarial currency Non-
(losses) translation controlling Total
US Dollar million gains reserve Total interests equity
Balance at 31 December 2010 (62) (104) 3 989 124 4 113
Profit for the period 1 167 29 1 196
Other comprehensive loss (412) (476) (476)
Total comprehensive (loss) income - (412) 691 29 720
Shares issued 33 33
Share-based payment for share
awards net of exercised 14 14
Dividends paid (89) (89)
Dividends of subsidiaries - (13) (13)
Translation 10 7 (7) -
Balance at 30 September 2011 (52) (516) 4 645 133 4 778
Balance at 31 December 2011 (78) (469) 5 029 137 5 166
Profit for the period 1 019 13 1 032
Other comprehensive loss (9) (57) (75) (75)
Total comprehensive income (loss) (9) (57) 944 13 957
Shares issued 32 32
Share-based payment for share
awards net of exercised 12 12
Acquisition of non-controlling
interest (144) (71) (215)
Dividends paid (193) (193)
Dividends of subsidiaries - (17) (17)
Translation 3 1 (1) -
Balance at 30 September 2012 (84) (526) 5 681 61 5 742
Segmental reporting
for the quarter and nine months ended 30 September 2012
AngloGold Ashanti's operating segments are being reported based on the
financial information provided to the Chief Executive Officer
and the Executive
Management team, collectively identified as the Chief Operating
Decision Maker
("CODM"). Individual members of the Executive Management team
are responsible
for geographic regions of the business.
Quarter ended Nine months ended
Sep Jun Sep Sep Sep
2012 2012 2011 2012 2011
Reviewed
Reviewed Reviewed Reviewed Reviewed
US Dollar million
Gold income
South Africa 606 539 675 1 669 1 889
Continental Africa 582 653 683 1 958 1 807
Australasia 101 117 93 333 282
Americas 421 390 448 1 243 1 095
1 709 1 700 1 899 5 203 5 073
Equity-accounted investments included above (80)
(81) (106) (248) (282)
1 629 1 619 1 793 4 955 4 791
Gross profit (loss)
South Africa 147 205 290 534 763
Continental Africa 197 244 325 758 732
Australasia 36 25 - 78 (5)
Americas 154 163 252 551 558
Corporate and other 6 15 (4) 24 12
540 652 863 1 945 2 060
Equity-accounted investments included above (28)
(19) (48) (83) (119)
512 633 815 1 862 1 941
Capital expenditure
South Africa 161 130 140 396 351
Continental Africa 208 180 101 510 268
Australasia 82 52 32 176 62
Americas 77 75 125 233 308
Corporate and other 17 14 10 35 14
545 451 408 1 350 1 002
Equity-accounted investments included above (73)
(54) (20) (161) (58)
472 397 388 1 189 944
Quarter ended Nine months ended
Sep Jun Sep Sep Sep
2012 2012 2011 2012 2011
Reviewed
Reviewed Reviewed Reviewed Reviewed
oz (000)
Gold production
South Africa 373 362 394 1 041 1 226
Continental Africa 357 407 411 1 146 1 151
Australasia 64 71 50 203 183
Americas 237 233 238 695 657
1 030 1 073 1 092 3 084 3 217
As at As at As at As at
Sep Jun Dec Sep
2012 2012 2011 2011
Reviewed Reviewed Audited Reviewed
US Dollar million
Total assets
South Africa 3 131 2 234 2 148 2 033
Continental Africa 4 840 4 685 4 288 4 072
Australasia 994 803 736 582
Americas 2 765 2 652 2 501 2 378
Corporate and other 1 120 919 1 129 1 029
12 849 11 293 10 802 10 094
Rounding of figures may result in computational discrepancies.
Notes
for the quarter and nine months ended 30
September 2012
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. Except for the change in
presentation currency detailed in note 16, 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 2011 and
revised International Financial Reporting Standards (IFRS) which are effective
1 January 2012, where applicable. The effect of the revised and amended
accounting standards applicable to this period are not considered to have a
material impact on the financial statements of the group.
The financial statements of AngloGold Ashanti Limited have been prepared in
compliance with IAS 34, JSE Listings Requirements and in the manner required by
the South African Companies Act, 2008 for the preparation of financial
information of the group for the quarter and nine months ended 30 September
2012.
2. Revenue
Quarter ended Nine months ended
Sep Jun Sep Sep Sep
2012 2012 2011 2012 2011
Reviewed Reviewed Reviewed Reviewed Reviewed
US Dollar million
Gold income 1,629 1,619 1,793 4,955 4,791
By-products (note 3) 28 43 57 132 175
Dividends received 7 - - 7 -
Royalties received (note 5) (10) 12 13 18 71
Interest received 10 9 10 31 29
1,664 1,684 1,873 5,142 5,066
3. Cost of sales
Quarter ended Nine months ended
Sep Jun Sep Sep Sep
2012 2012 2011 2012 2011
Reviewed Reviewed Reviewed Reviewed Reviewed
US Dollar million
Cash operating costs 866 815 777 2,445 2,241
Insurance reimbursement (30) - - (30)
-
By-products revenue (note 2) (28) (43) (57) (132) (175)
808 772 720 2,283 2,066
Royalties 49 44 55 142 142
Other cash costs 10 8 9 25 23
Total cash costs 867 825 784 2,450 2,231
Retrenchment costs 2 3 4 8 10
Rehabilitation and other
non-cash costs 16 25 11 50 72
Production costs 885 853 799 2,509 2,314
Amortisation of tangible
assets 202 195 192 588 565
Amortisation of intangible
assets 1 1 1 3 2
Total production costs 1,089 1,049 992 3,100 2,881
Inventory change (32) (63) (14) (68) (31)
1,056 986 977 3,032 2,849
4. Other operating expenses
Quarter ended Nine months ended
Sep Jun Sep Sep Sep
2012 2012 2011 2012 2011
Reviewed Reviewed Reviewed Reviewed Reviewed
US Dollar million
Pension and medical defined
benefit provisions 4 26 7 35 15
Claims filed by former employees
in respect of loss of
employment, work-related
accident injuries and diseases,
governmental fiscal claims and
care and maintenance of old
tailings operations 1 2 4 5 17
5 28 11 40 32
Rounding of figures may result in computational
discrepancies.
5. Special items
Quarter ended Nine months ended
Sep Jun Sep Sep Sep
2012 2012 2011 2012 2011
Reviewed Reviewed Reviewed Reviewed Reviewed
US Dollar million
Indirect tax expenses and legal
claims 3 - 3 8 13
Impairment of tangible assets
(note 8) 1 1 3 2 14
Impairment reversal of intangible
assets (note 8) - - - (10) -
Black Economic Empowerment
transaction modification costs
for Izingwe (Pty) Limited - - - - 7
Impairment of other receivables 1 - - 1
1
Royalties received (note 2) (1) 10 (12) (13) (18) (71)
Net loss on disposal and
derecognition of land, mineral
rights, tangible assets,
exploration properties and other
(note 8) 7 3 4 13 2
Impairment of investments (note
8) 3 - 16 4 18
Profit on disposal of subsidiary
ISS International Limited (note
8) - - - - (2)
25 (8) 13 - (18)
(1) Boddington royalties include an over accrual relating to the
prior quarter of $11m.
6. Finance costs and unwinding of obligations
Quarter ended Nine months ended
Sep Jun Sep Sep Sep
2012 2012 2011 2012 2011
Reviewed Reviewed Reviewed Reviewed Reviewed
US Dollar million
Finance costs 50 36 34 121 107
Unwinding of obligations,
accretion of convertible bonds
and other discounts 15 13 14 43 41
65 49 48 163 148
7. Taxation
Quarter ended Nine months ended
Sep Jun Sep Sep Sep
2012 2012 2011 2012 2011
Reviewed Reviewed Reviewed Reviewed Reviewed
US Dollar million
South African taxation
Mining tax 25 31 42 82 42
Non-mining tax 6 4 (1) 11 4
(Over) under prior year provision (2) 1 (3) -
5
Deferred taxation
Temporary differences 19 7 53 37 180
Unrealised non-hedge derivatives
and other commodity contracts (17) - - (17)
-
Change in statutory tax rate - - - (131)
-
31 43 92 (18) 232
Foreign taxation
Normal taxation 77 94 107 300 211
Under prior year provision - 6 7 6 7
Deferred taxation
Temporary differences (32) 43 (1) 45 27
Change in statutory tax rate - - - 41
-
45 143 113 391 245
76 186 204 373 477
Rounding of figures may result in computational
discrepancies.
8. Headline earnings
Quarter ended Nine months ended
Sep Jun Sep Sep Sep
2012 2012 2011 2012 2011
Reviewed Reviewed Reviewed Reviewed Reviewed
US Dollar million
The profit attributable to
equity shareholders has been
adjusted by the following to
arrive at headline earnings:
Profit attributable to equity
shareholders 168 287 456 1,019 1,167
Impairment of tangible assets
(note 5) 1 1 3 2 14
Impairment reversal of
intangible assets (note 5) - - - (10) -
Net loss on disposal and
derecognition of land, mineral
rights, tangible assets,
exploration properties and other
(note 5) 7 3 4 13 2
Impairment of investments
(note 5) 3 - 16 4 18
Profit on disposal of subsidiary
ISS International Limited
(note 5) - - - - (2)
Net impairment of investment in
associates and joint ventures - 14 - 12
2
Special items of associates - - - (3) -
Taxation on items above -
current portion (1) - - (1) 1
Taxation on items above -
deferred portion (1) 1 (2) - (8)
178 307 476 1,036 1,194
Headline earnings per ordinary
share (cents) (1) 46 79 123 268 309
Diluted headline earnings per
ordinary share (cents)(2)(3) 46 66 114 224 254
(1) Calculated on the basic weighted average number of ordinary shares.
(2) Calculated on the diluted weighted average number of ordinary shares.
(3) The September 2011 quarter and the September 2011 nine months ended
diluted earnings per ordinary share and diluted headline earnings per ordinary
share amounts have been corrected to take into account the earnings effect of
the fair value adjustment of the option component of the 3.5% convertible
bonds. The impact of this correction decreased diluted earnings per ordinary
share by 3 cents and 23 cents and diluted headline earnings per ordinary share
by 3 cents and 24 cents respectively.
9. Number of shares
Quarter ended Nine months ended
Sep Jun Sep Sep Sep
2012 2012 2011 2012 2011
Reviewed Reviewed Reviewed Reviewed Reviewed
Authorised number of shares:
Ordinary shares of 25 SA cents each 600,000,000 600,000,000 600,000,000 600,000,000 600,000,000
E ordinary shares of 25 SA cents each 4,280,000 4,280,000 4,280,000 4,280,000 4,280,000
A redeemable preference shares of 50 SA cents each 2,000,000 2,000,000 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 5,000,000 5,000,000
Issued and fully paid number of shares:
Ordinary shares in issue 383,110,317 382,812,185 381,850,470 383,110,317 381,850,470
E ordinary shares in issue 2,498,230 2,513,952 3,421,848 2,498,230 3,421,848
Total ordinary shares: 385,608,547 385,326,137 385,272,318 385,608,547 385,272,318
A redeemable preference shares 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000
B redeemable preference shares 778,896
778,896 778,896 778,896 778,896
In calculating the basic and diluted number of ordinary shares
outstanding forthe period, the following were taken into
consideration:
Ordinary shares 382,854,974 382,507,333 381,644,151 382,593,036 381,471,126
E ordinary shares 2,546,474 2,550,514 3,431,215 2,541,262 2,958,298
Fully vested options 1,447,978 1,799,218 1,305,486 1,706,404 1,447,478
Weighted average number of shares 386,849,426 386,857,065 386,380,852 386,840,702 385,876,902
Dilutive potential of share options 1,510,368 1,353,761 1,290,253 1,545,223 1,321,614
Dilutive potential of convertible bonds (1) - 33,524,615 33,524,615 33,524,615 33,524,615
Diluted number of ordinary shares 388,359,794 421,735,441 421,195,720 421,910,540 420,723,131
(1) The dilutive effect of the convertible bonds are
not the same for the quarter and the nine months ended
September 2012 as the effect of the convertible
bonds are anti-dilutive for the quarter.
10. Share capital and premium
As At
Sep Jun Dec Sep
2012 2012 2011 2011
Reviewed Reviewed Audited Reviewed
US Dollar million
Balance at beginning of period 6,782 6,782 6,734 6,734
Ordinary shares issued 32 22 57 33
E ordinary shares issued and cancelled (1) (1) (9)
(2)
Sub-total 6,813 6,803 6,782 6,765
Redeemable preference shares held within
the group (53) (53) (53) (53)
Ordinary shares held within the group (17) (17) (17)
(22)
E ordinary shares held within the group (22) (22) (23) (30)
Balance at end of period 6,721 6,711 6,689 6,660
Rounding of figures may result in computational
discrepancies.
11. Exchange rates
Sep Jun Dec Sep
2012 2012 2011 2011
Unaudited Unaudited Unaudited Unaudited
ZAR/USD average for the year to
date 8.04 7.93 7.26 6.97
ZAR/USD average for the quarter 8.25 8.12 8.09 7.14
ZAR/USD closing 8.30 8.16 8.04 8.11
AUD/USD average for the year to
date 0.97 0.97 0.97 0.96
AUD/USD average for the quarter 0.96 0.99 0.99 0.95
AUD/USD closing 0.96 0.98 0.97 1.04
BRL/USD average for the year to
date 1.92 1.86 1.68 1.63
BRL/USD average for the quarter 2.03 1.96 1.80 1.64
BRL/USD closing 2.03 2.02 1.87 1.89
ARS/USD average for the year to
date 4.46 4.39 4.13 4.08
ARS/USD average for the quarter 4.61 4.44 4.25 4.16
ARS/USD closing 4.70 4.53 4.30 4.20
12. Capital commitments
Sep Jun Dec Sep
2012 2012 2011 2011
Reviewed Reviewed Audited Reviewed
US Dollar million
Orders placed and outstanding on
capital contracts at the prevailing
rate of exchange (1) 1,004 491 202 286
(1) Includes capital commitments relating to equity-accounted
joint ventures.
Liquidity and capital resources
To service the above capital commitments and other operational
requirements, the group is dependent on existing cash resources,
cash generated from operations and borrowing facilities.
Cash generated from operations is subject to operational, market
and other risks. Distributions from operations may be subject to
foreign investment, exchange control laws and regulations and the
quantity of foreign exchange available in offshore countries. In
addition, distributions from joint ventures are subject to the
relevant board approval.
The credit facilities and other finance arrangements contain financial
covenants and other similar undertakings. To the extent that external
borrowings are required, the group's covenant performance indicates that
existing financing facilities will be available to meet the above commitments.
To the extent that any of the financing facilities mature in the near future,
the group believes that sufficient measures are in place to ensure that these
facilities can be refinanced.
13. Business combinations
Acquisition of First Uranium (Pty) Limited
On 20 July 2012, AngloGold Ashanti acquired the entire share capital of First
Uranium (Pty) Limited (South Africa), a wholly owned subsidiary of
Toronto-based First Uranium Corporation and the owner of Mine Waste Solutions,
a recently commissioned tailings retreatment operation located in South
Africa's Vaal River region and in the immediate proximity of AngloGold
Ashanti's own tailings facilities, for an aggregate cash consideration of
$335m. The transaction was funded from cash reserves and debt facilities. The
acquisition has been accounted for using the acquisition method.
The fair value of the identifiable assets and liabilities of
First Uranium (Pty) Limited as at the date of acquisition was:
2012
US Dollars million
Assets
Tangible assets 616
Listed Investments 3
Cash restricted 3
for use
Deferred tax 52
Inventories 134
Trade and other 2
receivables
Cash and cash 5
equivalents
815
Liabilities
Deferred tax 60
Environmental 386
rehabilitation and
other provisions
Loans from group 204
companies
Trade and other 48
payables
698
Total identifiable 117
net assets at fair
value
Purchase 131
consideration
Goodwill 14
recognised on
acquisition
Analysis of cash
flows on
acquisition:
Net cash acquired 5
with the
subsidiary
Cash paid - Share (131)
capital acquired
Cash paid - Loan (204)
acquired
(330)
From the date of acquisition, First Uranium has contributed $21m of revenue and
a loss of $44m to the net profit before tax of the group which is principally
due to the unrealised portion of the commodity contract. If the combination had
taken place at the beginning of the year, the profit for the period would have
been $1,076m and revenue would have been $5,208m.
The transaction costs of $3m have
been expensed and are included in administrative expenses in the
income statement and are part of the operating activities in the
statement of cash flows.
The goodwill of $14m arising from the acquisition consists largely of the
expected synergies arising from the immediate proximity of AngloGold Ashanti's
own tailings facilities to the Mine Waste Solutions plant that will allow
processing of AngloGold Ashanti's Vaal River tailings without having to build
additional processing facilities. The processing of AngloGold Ashanti tailings
will reduce the environmental liability associated with those tailings. In
addition the company is able to utilise its recently developed processes and
recovery technology for tailings which will increase the ore recovery rates
from both AngloGold Ashanti and First Uranium tailings alike.
None of the goodwill recognised is expected to be deductible for income tax
purposes. There have been no significant movements in provisions except for the
fair value movements related to the commodity contract or goodwill since the
date of acquisition.
Financial assets acquired includes trade and other receivables
with a fair value of $2m. All trade
and other receivables are expected to be collectible.
14. Contingencies
AngloGold Ashanti's material contingent liabilities and assets at 30 September
are detailed below:
Contingencies and guarantees
Sep Sep
2012 2011
Reviewed Unaudited
US Dollar million
Contingent liabilities
Groundwater pollution (1) - -
Deep groundwater pollution - South Africa (2) - -
Indirect taxes - Ghana (3) 21 11
ODMWA litigation (4) - -
Other tax disputes - AngloGold Ashanti Brasil Mineração
Ltda(5) 33 26
Sales tax on gold deliveries - Mineração Serra Grande
S.A.(6) 172 84
Other tax disputes - Mineração Serra Grande S.A.(7) 18
9
Litigation - Ghana (8) 32 -
Contingent assets
Indemnity - Kinross Gold Corporation (9) (98) -
Royalty - Boddington Gold Mine (10) - -
Royalty - Tau Lekoa Gold Mine(11) - -
Financial Guarantees
Oro Group (Pty) Limited (12) 12 12
190 142
(1) Groundwater pollution - AngloGold Ashanti has identified groundwater
contamination plumes at certain of its operations, which have occurred
primarily as a result of seepage. Numerous scientific, technical and legal
studies have been undertaken to assist in determining the extent of the
contamination and to find sustainable remediation solutions. The group has
instituted processes to reduce future potential seepage and it has been
demonstrated that Monitored Natural Attenuation (MNA) by the existing
environment will contribute to improvements in some instances. Furthermore,
literature reviews, field trials and base line modelling techniques suggest,
but have not yet proven, that the use of phyto-technologies can address the
soil and groundwater contamination. Subject to the completion of trials and the
technology being a proven remediation technique, no reliable estimate can be
made for the obligation.
(2) Deep groundwater pollution - The company has identified a flooding and
future pollution risk posed by deep groundwater. Various studies have been
undertaken by AngloGold Ashanti since 1999. Due to the interconnected nature of
mining operations, any proposed solution needs to be a combined one supported
by all the mines located in these gold fields. As a result, in South Africa,
the Department of Mineral Resources and affected mining companies are now
involved in the development of a "Regional Mine Closure Strategy". In view of
the limitation of current information for the estimation of a liability, no
reliable estimate can be made for the obligation.
(3) Indirect taxes - AngloGold Ashanti (Ghana) Limited received a tax
assessment for $21m (2011: $11m) during September 2009 in respect of 2006, 2007
and 2008 tax years, following an audit by the tax authorities related to
indirect taxes on various items. Management is of the opinion that the indirect
taxes are not payable and the company has lodged an objection.
(4) Occupational Diseases in Mines and Works Act, 1973 (ODMWA) litigation -
The case of Mr Thembekile Mankayi was heard in the High Court of South Africa
in June 2008, and an appeal heard in the Supreme Court of Appeal in 2010. In
both instances judgement was awarded in favour of AngloGold Ashanti Limited on
the basis that an employer is indemnified against such a claim for damages by
virtue of the provisions of section 35 of the Compensation for Occupational
Injuries and Diseases Act, 1993 (COIDA). A further appeal that was lodged by Mr
Mankayi was heard in the Constitutional Court in 2010. Judgement in the
Constitutional Court was handed down on 3 March 2011. The Constitutional Court
held that section 35 of COIDA does not indemnify the employer against such
claims. Mr Mankayi passed away subsequent to the hearing in the Supreme Court
of Appeal. Following the Constitutional Court judgement, Mr Mankayi's executor
may proceed with his case in the High Court. This will comprise, amongst
others, providing evidence showing that Mr Mankayi contracted silicosis as a
result of negligent conduct on the part of AngloGold Ashanti Limited.
On or about 21 August 2012, AngloGold Ashanti Limited was served with motion
proceedings in Johannesburg relating to silicosis and other occupational lung
diseases ("OLD"). The motion proceedings seek to have the court certify a class
of mineworkers with OLD who previously worked or continue to work in one of six
gold mines currently within AngloGold Ashanti's South African operations. In
the event the class is certified, such class of workers would institute actions
by way of a summons against AngloGold Ashanti Limited and potentially other
defendants for amounts as yet unspecified. At least one similar class action
has been threatened against AngloGold Ashanti Limited by another law firm. As
of 30 September 2012, a further 31 individual claims have been received and
AngloGold Ashanti has filed a notice of intention to oppose the claims. It is
possible that additional class actions and/or individual claims relating to
silicosis and/or other OLD will be filed against AngloGold Ashanti Limited in
the future.
AngloGold Ashanti will defend these and any other future claims, if and when
filed, on their merits. Should AngloGold Ashanti be unsuccessful in defending
any such claims, or in otherwise favourably resolving perceived deficiencies in
the national occupational disease compensation framework that were identified
in an earlier decision by the Constitutional Court, such matters would have an
adverse effect on AngloGold Ashanti's financial position, which could be
material. In view of the limitation of current information for the estimation
of any liability that may arise as a result of such claims, no reasonable
estimate can be made of any such potential liability.
(5) Other tax disputes - In November 2007, the Departamento Nacional de
Produção Mineral (DNPM), a Brazilian federal mining authority, issued a tax
assessment against AngloGold Ashanti Brazil Mineração (AABM) in the amount of
$21m (2011: $21m) relating to the calculation and payment by AABM of the
financial contribution on mining exploitation (CFEM) in the period from 1991 to
2006. AngloGold Ashanti Limited's subsidiaries in Brazil are involved in
various other disputes with tax authorities. These disputes involve federal tax
assessments including income tax, royalties, social contributions and annual
property tax. The amount involved is approximately $12m (2011: $5m).
(6) Sales tax on gold deliveries - In 2006, Mineração Serra Grande S.A. (MSG),
received two tax assessments from the State of Goiás related to payments of
state sales taxes at the rate of 12% on gold deliveries for export from one
Brazilian state to another during the period from February 2004 to the end of
May 2006. The first and second assessments are approximately $106m (2011:
attributable share $52m) and $66m (2011: attributable share $32m) respectively.
In November 2006, the administrative council's second chamber ruled in favour
of MSG and fully cancelled the tax liability related to the first period. In
July 2011, the administrative council's second chamber ruled in favour of MSG
and fully cancelled the tax liability related to the second period. The State
of Goiás has appealed to the full board of the State of Goiás tax
administrative council. In November 2011 (first case) and June 2012 (second
case), the administrative council's full board approved the suspension of
proceedings and the remittance of the matter to the Department of Supervision
of Foreign Trade (COMEX) for review and verification. The first case was
already returned to the COMEX and the second case was sent in June 2012. The
company believes both assessments are in violation of federal legislation on
sales taxes.
(7) Other tax disputes - MSG received a tax assessment in October 2003 from the
State of Minas Gerais related to sales taxes on gold. The tax administrators
rejected the company's appeal against the assessment. The company is now
appealing the dismissal of the case. The assessment is approximately $18m
(2011: attributable share $9m).
(8) AngloGold Ashanti Ghana terminated its longstanding Underground Development
Contract with Mining and Building Construction Company (MBC). MBC has submitted
various claims against AngloGold Ashanti Ghana arising out of this contract to
the value of $32m. The company intends to defend against the claims.
(9) Indemnity - As part of the acquisition by AngloGold Ashanti
of the remaining 50% interest in MSG during June 2012, Kinross Gold Corporation (Kinross) has provided an indemnity to a
maximum amount of BRL255m
($126m at quarter end exchange
rates) against the specific exposures discussed in items 6 and 7
above.
(10) Royalty - As a result of the sale of the interest in the Boddington Gold
Mine joint venture during 2009, the group is entitled to receive a royalty on
any gold recovered or produced by the Boddington Gold Mine, where the gold
price is in excess of Boddington Gold Mine's total cash cost plus $600/oz. The
royalty commenced on 1 July 2010 and is capped at a total amount of $100m, of
which $45m (2011: $26m) has been recorded to date. Royalties of nil (2011: $9m)
were recorded during the quarter as a result of the conditions mentioned above
not being met.
(11) Royalty - As a result of the sale of the interest in the Tau Lekoa Gold
Mine during 2010, the group is entitled to receive a royalty on the production
of a total of 1.5Moz by the Tau Lekoa Gold Mine in the event that the average
monthly rand price of gold exceeds R180,000/kg (subject to an inflation
adjustment). Where the average monthly rand price of gold does not exceed
R180,000/kg (subject to an inflation adjustment), the ounces produced in that
quarter do not count towards the total 1.5Moz upon which the royalty is
payable.
The royalty will be determined at 3% of the net revenue (being gross revenue
less State royalties) generated by the Tau Lekoa assets. Royalties on 273,019oz
produced have been received to date. Royalties of $1m (2011: $1m) were received
during the quarter.
(12) Provision of surety - The company has provided sureties in favour of a
lender on a gold loan facility with its affiliate Oro Group (Pty) Limited and
one of its subsidiaries to a maximum value of $12m (2011: $12m). The suretyship
agreements have a termination notice period of 90 days.
15. Borrowings
AngloGold Ashanti's borrowings are interest bearing.
16. Change in presentation currency
Effective 1 January 2012, the group changed the presentation currency of its
results from reporting in US Dollars and South African Rands to reporting only
in US Dollars. Management has concluded that the change in presentation
currency will result in more reliable and relevant information than the prior
position of reporting in two currencies. Management considered the following
factors: the majority of AngloGold Ashanti's operating mines use US Dollars as
their functional currency; the majority of AngloGold Ashanti's annual
production and reserves are derived from non-South African Rand denominated
countries; the majority of AngloGold Ashanti shareholders are not domiciled in
a South African Rand denominated country; management prepare investor
presentations and analysis in US Dollars only; and the management accounts,
except for South Africa which is reported in dual currency, are reported to the
Chief Operating Decision Maker in US Dollars. The change in presentation
currency has no effect on comparative information.
17. Announcements
On 23 July 2012, AngloGold Ashanti announced that it had signed a new US$1bn,
five-year unsecured revolving credit facility (RCF) maturing in July 2017 with
a banking syndicate. The facility replaced the four-year, US$1bn unsecured RCF
maturing in April 2014.
On 25 July 2012, AngloGold Ashanti announced the pricing of an offering of
$750m aggregate principal amount of 5.125% notes due 2022. The notes were
issued by AngloGold Ashanti Holdings plc, a wholly owned subsidiary of the
company, at an issue price of 99.398%. The company received net proceeds from
the offering of $737m, after deducting discounts and estimated expenses. The
notes are unsecured and fully and unconditionally guaranteed by the company.
On 14 August 2012, AngloGold Ashanti announced that Maria Esperanza Sanz Perez,
Group General Counsel, will also assume the role of Company Secretary following
the retirement of Lynda Eatwell. The appointment was effective 1 September
2012.
On 21 September 2012, AngloGold Ashanti announced an unprotected strike at
Kopanang operations which prevented the night shift from taking place on 20
September 2012. Subsequently, on 25 September 2012, AngloGold announced that
workers at South African operations (West Wits and Vaal River) had embarked on
an unprotected strike, joining those at Kopanang mine, preventing the
commencement of the night shift on 25 September 2012.
On 10 October 2012, the JSE Limited granted AngloGold Ashanti the listing of
its Senior Unsecured Fixed Rate Notes of R300m, due 14 January 2013, and Senior
Unsecured Floating Rate Notes of R700m, due 11 October 2013, under its R10bn
Domestic Medium Term Note Programme dated 29 June 2012.
On 13 October 2012, AngloGold Ashanti terminated its underground development
contract with Mining and Building Construction Company (MBC) at the Obuasi mine
in Ghana. AngloGold Ashanti is committed to ensuring that the estimated 900
members of MBC's workforce directly affected by the termination of the
underground development contract receive their current due entitlements. The
remaining surface contracts at Obuasi between the two parties remain intact.
On 6 November 2012, AngloGold Ashanti announced a second sit-in by dayshift
employees at Mponeng mine which has again forced management to halt mining and
processing activity. These sit-ins follow the unprotected strike, which started
on 25 September 2012. Work has continued as normal at AngloGold Ashanti's
remaining South African mines.
18. Dividend
The salient details Dividend No. 114 for the quarter ended 30 June 2012 paid by
AngloGold Ashanti Limited (Registration Number 1944/017354/06) is shown below:
Rate of Gross Withholding Net Date of
Exchange dividend tax at 15% dividend Payment 2012
declared paid
South African cents 100
per ordinary share - 15 85 14 September
UK pence per ordinary R13.13825 7.6114 14 September
share /£1 1.1417 6.4697
Australian cents per 2.306 14 September
CHESS Depositary R1/
Interest (CDI) A$0.11530 0.346 1.960
Ghana cedi per R1/¢ 0.2358 14 September
ordinary share 0.2358 0.035 0.20043
Ghana cedi per 0.00236
Ghanaian Depositary R1/¢
Share (GhDS) 0.2358 0.00035 0.002004 17 September
US cents per American R8.262276 12.1032
Depositary Share (ADS) /$1 1.8155 10.2877 24 September
Each CDI represents one-fifth of an ordinary share, and 100
GhDSs represents one ordinary share. Each ADS represents one
ordinary share.
Quarter ended 30 June 2012 Dividend No. E14 of 50 South African cents (gross),
or 42.5 South African cents (net) was paid to holders of E ordinary shares on
14 September 2012, being those employees participating in the Bokamoso ESOP and
50 South African cents (gross) was paid to Izingwe Holdings (Proprietary)
Limited on the same day.
The directors of AngloGold Ashanti Limited (Registration Number 1944/017354/06)
declared Dividend No. 115 for the quarter ended 30 September 2012 as detailed
below. In terms of the withholding tax on dividends which became effective on 1
April 2012, the following additional information is disclosed:
Dividends have been declared out of total reserves
Rate of dividend declared per ordinary share in South African
cents
50
(gross)
Dividends tax rate applicable to shareholders liable to pay the
15%
dividend tax
STC credits utilised in South African cents
Nil
Rate in South African cents (net) where dividend tax at 15% is
42.5
payable
The ordinary shares in issue of AngloGold Ashanti Limited at the 383,285,642
date of declaration is
The E ordinary shares in issue of AngloGold Ashanti Limited at the 1,620,158
date of declaration is
AngloGold Ashanti Limited's tax reference number
9640006608
In compliance with the requirements of Strate, given the
company's primary listing on the JSE, the salient dates for payment
of the dividend are as follows:
To holders of ordinary shares and to holders of CHESS Depositary Interests
(CDIs)
Each CDI represents one-fifth of an ordinary share.
2012
Currency conversion date for UK pounds, Australian dollars Thursday,
and Ghanaian cedis 22 November
Last date to trade ordinary shares cum dividend Friday,
23 November
Last date to register transfers of certificated securities Friday,
cum dividend 23 November
Ordinary shares trade ex-dividend Monday,
26 November
Record date Friday,
30 November
Payment date Friday,
14 December
On the payment date, dividends due to holders of certificated securities on the
South African and United Kingdom share registers will be electronically
transferred to shareholders' bank accounts. Given the increasing incidences of
fraud with respect to cheque payments, the company has ceased the payment of
dividends by way of cheque.
Shareholders are requested to notify the relevant share registrars with banking
details to enable future dividends to be paid via electronic funds transfer.
Refer to the back cover for share registrar details.
Dividends in respect of dematerialised shareholdings will be
credited to shareholders' accounts with the relevant CSDP or
broker.
To comply with further requirements of Strate, between Monday, 26 November and
Friday, 30 November 2012, both days inclusive, no transfers between the South
African, United Kingdom, Australian and Ghana share registers will be permitted
and no ordinary shares pertaining to the South African share register may be
dematerialised or rematerialised.
To holders of American Depositary Shares
Each American Depositary Share (ADS) represents one ordinary
share.
2012
Ex dividend on New York Stock Exchange Wednesday, 28
November
Record date Friday, 30 November
Approximate date for currency conversion Friday, 14 December
Approximate payment date of dividend Monday, 24 December
Assuming an exchange rate of R8.6170/$, the gross dividend payable per ADS,
which is subject to a 15% South African withholding tax, is equivalent to 6 US
cents. However the actual rate of payment will depend on the exchange rate on
the date for currency conversion.
To holders of Ghanaian Depositary Shares (GhDSs) 100 GhDSs
represent one ordinary share.
2012
Last date to trade and to register GhDSs cum dividend Friday, 23
November
GhDSs trade ex-dividend Monday, 26 November
Record date Friday, 30 November
Approximate payment date of dividend Monday, 17 December
Assuming an exchange rate of R1/0.21815¢, the gross dividend payable per share,
which is subject to a 15% South African withholding tax, is equivalent to
0.1091 cedis. However, the actual rate of payment will depend on the exchange
rate on the date for currency conversion. In Ghana, the authorities have
determined that dividends payable to residents on the Ghana share register be
subject to a final withholding tax at a rate of 8%.
In addition, the directors declared Dividend No. E15 for the quarter ended 30
September 2012, of 25 South African cents per E ordinary share, payable to
employees participating in the Bokamoso ESOP, which dividend is subject to a
15% withholding tax, and 25 South African cents per E ordinary share payable to
Izingwe Holdings (Proprietary) Limited. These dividends will be paid on Friday,
14 December 2012.
By order of the Board
T T MBOWENI M CUTIFANI
Chairman Chief Executive Officer
6 November 2012
Non-GAAP disclosure
From time to time AngloGold Ashanti Limited may publicly
disclose certain "Non-GAAP" financial measures in the course of its
financial presentations,
earnings releases, earnings conference calls and otherwise.
The group uses certain Non-GAAP performance measures and ratios
in managing the business and may provide users of this financial
information with
additional meaningful comparisons between current results and
results in prior operating periods. Non-GAAP financial measures
should be viewed in
addition to, and not as an alternative to, the reported
operating results or any other measure of performance prepared in
accordance with IFRS. In addition,
the presentation of these measures may not be comparable to
similarly titled measures that other companies use.
Non-GAAP disclosure
From time to time AngloGold Ashanti Limited may publicly
disclose certain "Non-GAAP" financial measures in the course of its
financial presentations, earnings releases, earnings conference
calls and otherwise.
The group uses certain Non-GAAP performance measures and ratios in managing the
business and may provide users of this financial information with additional
meaningful comparisons between current results and results in prior operating
periods. Non-GAAP financial measures should be viewed in addition to, and not
as an alternative to, the reported operating results or any other measure of
performance prepared in accordance with IFRS. In addition, the presentation of
these measures may not be comparable to similarly titled measures that other
companies use.
Non-GAAP disclosure
From time to time AngloGold Ashanti Limited may publicly
disclose certain "Non-GAAP" financial measures in the course of its
financial presentations, earnings releases, earnings conference
calls and otherwise.
The group uses certain Non-GAAP performance measures and ratios in managing the
business and may provide users of this financial information with additional
meaningful comparisons between current results and results in prior operating
periods. Non-GAAP financial measures should be viewed in addition to, and not
as an alternative to, the reported operating results or any other measure of
performance prepared in accordance with IFRS. In addition, the presentation of
these measures may not be comparable to similarly titled measures that other
companies use.
A Adjusted headline earnings Quarter Nine
ended months
ended
Sep Jun Sep Sep Sep
2012 2012 2011 2012 2011
Unaudited Unaudited Unaudited Unaudited Unaudited
US Dollar
Million
Headline earnings (note 8) 178 307 476 1 036 1 194
Loss on unrealised 61 - 1 61 1
non-hedge derivatives and
other commodity contracts
Deferred tax on unrealised (17) - - (17) -
non-hedge derivatives and
other commodity contracts
(note 7)
Fair value adjustment on 2 (24) (11) (66) (98)
option component of
convertible bonds
Fair value adjustment on 11 (29) (9) (97)
(95)
mandatory convertible bonds
Adjusted headline earnings 235 253 457 917 1 002
Adjusted headline earnings 61 65 118 237 260
per ordinary share (cents)
(1)
(1) Calculated on the basic
weighted average number of
ordinary shares.
B Adjusted gross profit Quarter Nine
ended months
ended
Sep Jun Sep Sep Sep
2012 2012 2011 2012 2011
Unaudited Unaudited Unaudited Unaudited Unaudited
Reconciliation of gross
profit to adjusted gross
profit: (1)
Gross profit 512 633 815 1 862 1 941
Loss on unrealised 61 - 1 61 1
non-hedge derivatives and
other commodity contracts
Adjusted gross profit (1) 573 633 816 1 923 1 942
(1) Adjusted gross profit
excludes unrealised
non-hedge derivatives and
other commodity contracts.
C Price received Quarter Nine
ended months
ended
Sep Jun Sep Sep Sep
2012 2012 2011 2012 2011
Unaudited Unaudited Unaudited Unaudited Unaudited
US Dollar
Million /
Imperial
Gold income (note 2) 1 629 1 619 1 793 4 995 4 791
Adjusted for (19) (45) (49) (115) (130)
non-controlling interests
1 610 1 574 1 744 4 840 4 661
Realised loss on other 5 - - 5 -
commodity contracts
Associates and equity 80 81 106 247 282
accounted joint ventures'
share of gold income
including realised
non-hedge derivatives
Attributable gold income 1 695 1 655 1 850 5 092 4 943
including realised
non-hedge derivatives
Attributable gold sold - 1 029 1 030 1 080 3 088 3 212
oz (000)
Revenue price per unit - $/ 1 648 1 607 1 713 1 649 1 539
oz
Rounding of figures may
result in computational
discrepancies.
Quarter Nine
ended months
ended
Sep Jun Sep Sep Sep
2012 2012 2011 2012 2011
Unaudited Unaudited Unaudited Unaudited Unaudited
US Dollar
Million /
Imperial
D Total costs
Total cash costs (note 3) 867 825 784 2 450 2 231
Adjusted for (26) (23) (36) (80) (85)
non-controlling interests
and non-gold producing
companies
Associates' and equity 51 58 56 161 157
accounted joint ventures'
share of total cash costs
Total cash costs adjusted 892 860 804 2 531 2 303
for non-controlling
interests and non-gold
producing companies
Retrenchment costs (note 3) 2 3 4 8
10
Rehabilitation and other 16 25 11 50
72
non-cash costs (note 3)
Amortisation of tangible 202 195 192 588 566
assets (note 3)
Amortisation of intangible 1 1 1 3 2
assets (note 3)
Adjusted for (3) (11) (7) (19)
(31)
non-controlling interests
and non-gold producing
companies
Associates and equity 3 2 1 7 6
accounted joint ventures'
share of production costs
Total production costs 1 113 1 075 1 007 3 168 2 928
adjusted for
non-controlling interests
and non-gold producing
companies
Gold produced - oz (000) 1 030 1 073 1 092 3 084 3 217
Total cash cost per unit - 866 801 737 821 716
$/oz
Total production cost per 1 081 1 002 922 1 027 910
unit - $/oz
E EBITDA
Operating profit 305 456 648 1 344 1 530
Amortisation of tangible 202 195 192 588 565
assets (note 3)
Amortisation of intangible 1 1 1 3
2
assets (note 3)
Impairment of tangible 1 1 3 2 14
assets (note 5)
Impairment reversal of - - - (10) -
intangible assets (note 5)
Loss on unrealised 61 - 1 61 1
non-hedge derivatives and
other commodity contracts
Share of associates' EBITDA 16 12 37 60 103
Impairment of investments 3 - 16 4 18
(note 5)
Net loss on disposal and 7 3 4 13 2
derecognition of assets
(note 5)
Profit on disposal of ISS - - - - (2)
International Limited (note
5)
597 668 902 2 065 2 234
F Interest cover
EBITDA (note D) 597 668 902 2 065 2 234
Finance costs (note 6) (1) 50 36 34 121 107
Capitalised finance costs 4 2 1 8 1
54 38 35 129 108
Interest cover - times 11 18 26 16
21
(1) The increase in the
finance costs is due to the
acceleration of the old RCF
fees and the finance charge
of the new $750m rated
bond.
As at As at As at As at
Sep Jun Dec Sep
2012 2012 2011 2011
Unaudited Unaudited Unaudited Unaudited
US Dollar
million
G Net asset value - cents per
share
Total equity 5 742 5 637 5 166 4 778
Mandatory convertible bonds 656 647 760 771
Number of ordinary shares 6 398 6 284 5 926 5 549
in issue - million (note 9)
386 385 385 385
Net asset value - cents per 1 659 1 631 1 540 1 440
share
Total equity 5 742 5 637 5 166 4 778
Mandatory convertible bonds 656 647 760 771
Intangible assets (289) (243) (210) (191)
6 109 6 041 5 716 5 358
Number of ordinary shares 386 385 385 385
in issue - million (note 9)
Net tangible asset value - 1 584 1 568 1 485 1
391
cents per share
H Net debt
Borrowings - long-term 2 708 1 847 1 698 1 670
portion
Borrowings - short-term 57 30 30 45
portion
Total borrowings (1) 2 765 1 877 1 728 1 715
Corporate office lease (32) (33) (33)
(32)
Unamortised portion of the 52 78 85
72
convertible and rated bonds
Cash restricted for use (93) (56) (58) (60)
Cash and cash equivalents (1 123) (987) (1 112) (1 075)
Net debt excluding 1 569 879 610 621
mandatory convertible bonds
(1) Borrowings exclude the
mandatory convertible bonds
(note H).
Rounding of figures may
result in computational
discrepancies.
OPERATING RESULTS South Africa Continental Australasia Americas Total
QUARTER ENDED SEPTEMBER 2012 Africa
group
UNDERGROUND OPERATION
Area mined - 000 m2 237 - - - 237
Mined - 000 tonnes 1 480 386 417 650 2 932
Milled / Treated - 000 tonnes 1 309 429 541 749 3 028
Recovered grade - oz/ton 0.221 0.124 0.057 0.146 0.160
- g/tonne 7.58 4.26 1.97 5.00 5.47
Gold produced - oz (000) 319 59 34 120 533
SURFACE AND DUMP RECLAMATION
Milled / Treated - 000 tonnes 6 687 36
- - 6 722
Recovered grade - oz/ton 0.007 0.025
- - 0.007
- g/tonne 0.25 0.85 - - 0.25
Gold produced - oz (000) 54 1 - - 55
OPEN-PIT OPERATION
Volume mined - 000 bcm - 11 661 1 369 - 13 030
Mined - 000 tonnes - 27 865 3 312 6 244 37 421
Treated - 000 tonnes - 6 151 293 268 6 712
Stripping ratio - ratio - 4.12
16.66 19.05 5.29
Recovered grade - oz/ton - 0.043 0.091 0.154 0.049
- g/tonne - 1.47 3.12 5.29 1.69
Gold produced - oz (000) - 290 29 46 365
HEAP LEACH OPERATION
Mined - 000 tonnes - 2 078 - 15 110 17 188
Placed - 000 tonnes - 315 - 5 917 6 232
Stripping ratio - ratio - 12.60
- 1.74 2.03
Recovered grade - oz/ton - 0.024 - 0.012 0.013
- g/tonne - 0.83 - 0.42 0.44
Gold placed - oz (000) - 8 - 79 88
Gold produced - oz (000) - 7 - 71 77
PRODUCTIVITY PER EMPLOYEE
Actual - oz/TEC 5 10 46 16 8
TOTAL
Subsidiaries' gold produced - oz (000) 373 307
64 237 980
Joint ventures' gold produced - oz (000) - 50
- - 50
Attributable gold produced - oz (000) 373 357 64 237 1 030
Minority gold produced - oz (000) - 11 - 5 15
Subsidiaries' gold sold - oz (000) 370 296 61 253 980
Joint ventures' gold sold - oz (000) - 49 - - 49
Attributable gold sold - oz (000) 370 345 61 253 1 029
Minority gold sold - oz (000) - 10 - 5 15
Spot price - $/oz 1 653 1 653 1 653 1 653 1 653
Price received - $/oz sold 1 652 1 642 1 646 1 652 1 648
Total cash costs - $/oz produced 849 916 937 798 866
Total production costs - $/oz produced 1 082 1 093 1 092 1 051 1 081
Recovered grade calculated using a short ton.
Rounding of figures may result in computational discrepancies.
FINANCIAL RESULTS South Africa Continental Australasia Americas
QUARTER ENDED SEPTEMBER 2012 $'m Africa
Gold income 606 582 101 421
Cash costs (318) (338) (60) (237)
By-products revenue 1 1 - 25
Total cash costs (317) (337) (60) (212)
Retrenchment costs (1) - - (1)
Rehabilitation and other non-cash costs (5) (7)
- (4)
Amortisation of assets (80) (58) (10) (56)
Total production costs (404) (401) (69) (274)
Inventory change 6 16 5 7
Cost of sales (398) (385) (64) (267)
Adjusted gross profit (loss) 207 197 36 154
Unrealised non-hedge derivatives and other (61) -
- -
commodity contracts
Gross profit (loss) 147 197 36 154
Corporate and other costs (2) (4) - (7)
Exploration and evaluation costs (3) (30)
(24) (42)
Intercompany transactions - (22) (3) (1)
Special items (2) (9) (14) (1)
Operating profit (loss) 139 132 (4) 104
Net finance (costs) income, unwinding (2) (1) (1) -
ofobligations and fair value adjustments
Exchange gain (loss) - (5) - (2)
Share of equity accounted investments profit - -
- (10)
Profit (loss) before taxation 136 127 (5) 91
Taxation (13) (68) 1 15
Profit (loss) for the period 124 59 (5) 106
Equity shareholders 124 62 (5) 104
Non-controlling interests - (4) - 2
Operating profit (loss) 139 132 (4) 104
Unrealised non-hedge derivatives and other 61 -
- -
commodity contracts
Loss on realised other commodity contracts - -
- -
Intercompany transactions - 22 3 1
Special items 4 7 3 1
Share of associates' EBIT - - - (10)
EBIT 203 161 2 95
Amortisation of assets 80 58 10 56
Share of associates' amortisation - -
- -
EBITDA 283 218 12 151
Profit (loss) attributable to equity 124 62
(5) 104
shareholders
Special items 4 7 3 1
Share of associates' special items - -
- -
Taxation on items above (1) - (1) -
Headline earnings (loss) 126 69 (3) 104
Unrealised non-hedge derivatives and other 61 -
- -
commodity contracts
Deferred tax on unrealised non-hedge (17) - - -
derivatives and other commodity contracts
Fair value adjustment on option component of - -
- -
convertible bonds
Fair value adjustment on mandatory convertible - -
- -
bonds
Adjusted headline earnings (loss) 170 69
(3) 104
Ore reserve development capital 67 10
3 21
Stay-in-business capital 42 81 6 34
Project capital 52 116 73 21
Total capital expenditure 161 208 82 77
Capitalised leased assets
Expenditures on intangible assets
Capital expenditure per statement of cash flows
Rounding of figures may result in computational discrepancies.
FINANCIAL RESULTS Corporate Less equity Total
QUARTER ENDED SEPTEMBER 2012 $'m and other Sub-total accounted group
investments
Gold income - 1 709 (80) 1 629
Cash costs 7 (946) 51 (895)
By-products revenue 1 28 - 28
Total cash costs 8 (918) 51 (867)
Retrenchment costs - (2) - (2)
Rehabilitation and other non-cash costs -
(16) - (16)
Amortisation of assets (2) (206) 3 (203)
Total production costs 6 (1 142) 54 (1 089)
Inventory change - 34 (2) 32
Cost of sales 6 (1 109) 52 (1 056)
Adjusted gross profit (loss) 6 601 (28) 573
Unrealised non-hedge derivatives and other commodity contracts -
(61) - (61)
Gross profit (loss) 6 540 (28) 512
Corporate and other costs (62) (75) - (75)
Exploration and evaluation costs (9)
(108) 2 (107)
Intercompany transactions 25 - - -
Special items 1 (25) - (25)
Operating profit (loss) (39) 331 (27) 305
Net finance (costs) income, unwinding ofobligations and fair (58)
(62) - (61)
value adjustments
Exchange gain (loss) 6 (1) 3 1
Share of equity accounted investments profit (4)
(14) 14 -
Profit (loss) before taxation (95) 255 (9) 245
Taxation (20) (85) 9 (76)
Profit (loss) for the period (114) 169 - 169
Equity shareholders (117) 168 - 168
Non-controlling interests 3 1 - 1
Operating profit (loss) (39) 331 (27) 305
Unrealised non-hedge derivatives and other commodity contracts - 61 - 61
Loss on realised other commodity contracts -
- - -
Intercompany transactions (25) - - -
Special items (2) 12 - 12
Share of associates' EBIT (3) (13) 27 13
EBIT (69) 391 - 391
Amortisation of assets 2 206 (3) 203
Share of associates' amortisation -
- 3 3
EBITDA (67) 597 - 597
Profit (loss) attributable to equity shareholders (117)
168 - 168
Special items (2) 12 - 12
Share of associates' special items -
- - -
Taxation on items above - (2) - (2)
Headline earnings (loss) (119) 178 - 178
Unrealised non-hedge derivatives and other commodity contracts - 61 - 61
Deferred tax on unrealised non-hedge derivatives and other -
(17) - (17)
commodity contracts
Fair value adjustment on option component of convertible bonds 2 2 - 2
Fair value adjustment on mandatory convertible bonds 11 11 - 11
Adjusted headline earnings (loss) (106)
235 - 235
Ore reserve development capital -
102 - 102
Stay-in-business capital 17 181 (2) 179
Project capital - 262 (71) 192
Total capital expenditure 17 545 (73) 472
Capitalised leased assets -
Expenditures on intangible assets (24)
Capital expenditure per statement of cash flows 448
Rounding of figures may result in computational discrepancies.
OPERATING RESULTS South Africa Continental Australasia Americas Total
QUARTER ENDED JUNE 2012 Africa group
UNDERGROUND OPERATION
Area mined - 000 m2 230 - - - 230
Mined - 000 tonnes 1 493 387 318 543 2 742
Milled / Treated - 000 tonnes 1 299 462 217 641 2 620
Recovered grade - oz/ton 0.222 0.163 0.086 0.161 0.185
- g/tonne 7.61 5.58 2.94 5.51 6.35
Gold produced - oz (000) 318 83 21 114 535
SURFACE AND DUMP RECLAMATION
Milled / Treated - 000 tonnes 3 010 -
- - 3 010
Recovered grade - oz/ton 0.013 -
- - 0.013
- g/tonne 0.46 - - - 0.46
Gold produced - oz (000) 44 - - - 44
OPEN-PIT OPERATION
Volume mined - 000 bcm - 15 106 559 - 15 665
Mined - 000 tonnes - 35 355 1 588 5 766 42 709
Treated - 000 tonnes - 6 217 623 238 7 078
Stripping ratio - ratio - 4.19
2.29 22.25 4.66
Recovered grade - oz/ton - 0.047 0.073 0.174 0.053
- g/tonne - 1.59 2.52 5.96 1.82
Gold produced - oz (000) - 319 50 46 415
HEAP LEACH OPERATION
Mined - 000 tonnes - 2 182 - 16 555 18 737
Placed - 000 tonnes - 252 - 5 498 5 750
Stripping ratio - ratio - 20.19
- 1.97 2.30
Recovered grade - oz/ton - 0.021 - 0.013 0.013
- g/tonne - 0.72 - 0.44 0.45
Gold placed - oz (000) - 6 - 78 83
Gold produced - oz (000) - 6 - 73 79
PRODUCTIVITY PER EMPLOYEE
Actual - oz/TEC 5 12 47 19 9
TOTAL
Subsidiaries' gold produced - oz (000) 362 358
71 233 1 024
Joint ventures' gold produced - oz (000) - 49
- - 49
Attributable gold produced - oz (000) 362 407 71 233 1 073
Minority gold produced - oz (000) - 12 - 20 32
Subsidiaries' gold sold - oz (000) 336 345 73 225 980
Joint ventures' gold sold - oz (000) - 50 - - 50
Attributable gold sold - oz (000) 336 395 73 225 1 030
Minority gold sold - oz (000) - 11 - 20 31
Spot price - $/oz 1 611 1 611 1 611 1 611 1 611
Price received - $/oz sold 1 604 1 606 1 608 1 611 1 607
Total cash costs - $/oz produced 779 827 1 187 671 801
Total production costs - $/oz produced 998 987 1 286 941 1 002
Recovered grade calculated using a short ton.
Rounding of figures may result in computational discrepancies.
FINANCIAL RESULTS South Africa Continental Australasia Americas
QUARTER ENDED JUNE 2012 $'m Africa
Gold income 539 653 117 390
Cash costs (304) (347) (84) (209)
By-products revenue 22 2 - 21
Total cash costs (282) (346) (84) (189)
Retrenchment costs (2) (1) - (1)
Rehabilitation and other non-cash costs (3) (8)
- (14)
Amortisation of assets (74) (58) (7) (56)
Total production costs (361) (412) (91) (260)
Inventory change 27 3 (1) 33
Cost of sales (334) (409) (92) (227)
Adjusted gross profit (loss) 205 244 25 163
Unrealised non-hedge derivatives and other - - - -commodity contracts
Gross profit (loss) 205 244 25 163
Corporate and other costs (2) (2) (1) (10)
Exploration and evaluation costs (2) (19)
(21) (40)
Intercompany transactions - (19) (3) (1)
Special items (1) (3) 11 2
Operating profit (loss) 200 200 11 114
Net finance (costs) income, unwinding of (1) (2) - 1
obligations and fair value adjustments
Exchange (loss) gain - 2 - 3
Share of equity accounted investments profit - -
- (5)
Profit (loss) before taxation 199 199 11 112
Taxation (43) (77) (4) (64)
Profit (loss) for the period 156 123 7 48
Equity shareholders 156 137 7 43
Non-controlling interests - (15) - 6
Operating profit (loss) 200 199 11 114
Intercompany transactions - 19 3 1
Special items 2 1 - 1
Share of associates' EBIT - - - (5)
EBIT 203 220 15 110
Amortisation of assets 74 58 7 56
Share of associates' amortisation - -
- -
EBITDA 276 278 22 166
Profit (loss) attributable to equity 156 137
7 43
shareholders
Special items 2 1 - 1
Share of associates' special items - -
- -
Taxation on items above (1) 3 - -
Headline earnings (loss) 157 141 7 43
Unrealised non-hedge derivatives and other - -
- -
commodity contracts
Deferred tax on unrealised non-hedge - - - -
derivatives and other commodity contracts
Fair value adjustment on option component of - -
- -
convertible bonds
Fair value loss on mandatory convertible bonds - -
- -
Adjusted headline earnings (loss) 157 141
7 43
Ore reserve development capital 62 12
4 17
Stay-in-business capital 35 87 5 22
Project capital 32 81 43 37
Total capital expenditure 130 180 52 75
Capitalised leased assets
Expenditures on intangible assets
Capital expenditure per statement of cash flows
Rounding of figures may result in computational discrepancies.
FINANCIAL RESULTS Corporate Less equity Total
QUARTER ENDED JUNE 2012 $'m and other
Sub-total accounted group
investments
Gold income - 1 700 (81) 1 619
Cash costs 18 (926) 58 (868)
By-products revenue - 44 - 43
Total cash costs 18 (883) 58 (825)
Retrenchment costs - (3) - (3)
Rehabilitation and other non-cash costs -
(25) - (25)
Amortisation of assets (3) (198) 2 (196)
Total production costs 15 (1 109) 61 (1 049)
Inventory change - 62 1 63
Cost of sales 15 (1 048) 62 (986)
Adjusted gross profit (loss) 15 652 (19) 633
Unrealised non-hedge derivatives and other commodity contracts -
- - -
Gross profit (loss) 15 652 (19) 633
Corporate and other costs (82) (97) - (97)
Exploration and evaluation costs (7)
(89) 1 (87)
Intercompany transactions 23 - - -
Special items - 8 - 8
Operating profit (loss) (51) 474 (18) 456
Net finance (costs) income, unwinding of obligations and fair 16
13 - 13
value adjustments
Exchange (loss) gain 4 9 (1) 8
Share of equity accounted investments profit (17)
(22) 16 (6)
Profit (loss) before taxation (48) 474 (3) 471
Taxation (1) (189) 3 (186)
Profit (loss) for the period (49) 285 - 285
Equity shareholders (56) 287 - 287
Non-controlling interests 6 (2) - (2)
Operating profit (loss) (51) 474 (18) 456
Intercompany transactions (23) - - -
Special items - 4 - 4
Share of associates' EBIT (3) (9) 18 9
EBIT (77) 469 - 469
Amortisation of assets 3 198 (2) 196
Share of associates' amortisation -
- 2 2
EBITDA (74) 668 - 668
Profit (loss) attributable to equity shareholders (56)
287 - 287
Special items - 4 - 4
Share of associates' special items 13
13 - 13
Taxation on items above - 2 - 2
Headline earnings (loss) (42) 307 - 307
Unrealised non-hedge derivatives and other commodity contracts - - - -
Deferred tax on unrealised non-hedge derivatives and other -
- - -
commodity contracts
Fair value adjustment on option component of convertible bonds (24) (24) - (24)
Fair value loss on mandatory convertible bonds (29) (29) - (29)
Adjusted headline earnings (loss) (95)
253 - 253
Ore reserve development capital -
95 - 95
Stay-in-business capital 14 163 (2) 162
Project capital - 193 (53) 141
Total capital expenditure 14 451 (54) 397
Capitalised leased assets (2)
Expenditures on intangible assets (20)
Capital expenditure per statement of cash flows 374
Rounding of figures may result in computational discrepancies.
OPERATING RESULTS South Africa Continental Australasia Americas Total
QUARTER ENDED SEPTEMBER 2011 Africa
group
UNDERGROUND OPERATION
Area mined - 000 m2 244 - - - 244
Mined - 000 tonnes 1 534 478 283 506 2 802
Milled / Treated - 000 tonnes 1 429 496 267 559 2 751
Recovered grade - oz/ton 0.230 0.137 0.062 0.194 0.189
- g/tonne 7.87 4.71 2.13 6.64 6.49
Gold produced - oz (000) 362 75 18 119 574
SURFACE AND DUMP RECLAMATION
Milled / Treated - 000 tonnes 2 472 -
- - 2 472
Recovered grade - oz/ton 0.012 -
- - 0.013
- g/tonne 0.40 - - - 0.44
Gold produced - oz (000) 32 3 - - 35
OPEN-PIT OPERATION
Volume mined - 000 bcm - 12 983 172 - 13 155
Mined - 000 tonnes - 31 335 218 6 766 38 319
Treated - 000 tonnes - 6 063 658 230 6 952
Stripping ratio - ratio - 5.43
35.22 22.71 6.42
Recovered grade - oz/ton - 0.049 0.044 0.176 0.052
- g/tonne - 1.67 1.50 6.05 1.80
Gold produced - oz (000) - 325 32 45 402
HEAP LEACH OPERATION
Mined - 000 tonnes - 1 431 - 17 356 18 788
Placed - 000 tonnes - 261 - 5 371 5 632
Stripping ratio - ratio - 9.09
- 2.40 2.58
Recovered grade - oz/ton - 0.031 - 0.012 0.013
- g/tonne - 1.05 - 0.43 0.46
Gold placed - oz (000) - 9 - 74 83
Gold produced - oz (000) - 8 - 74 81
PRODUCTIVITY PER EMPLOYEE
Actual - oz/TEC 6 12 32 22 9
TOTAL
Subsidiaries' gold produced - oz (000) 394 348
50 238 1 029
Joint ventures' gold produced - oz (000) - 63
- - 63
Attributable gold produced - oz (000) 394 411 50 238 1 092
Minority gold produced - oz (000) - 10 - 19 29
Subsidiaries' gold sold - oz (000) 393 324 55 246 1 018
Joint ventures' gold sold - oz (000) - 62 - - 62
Attributable gold sold - oz (000) 393 386 55 246 1 080
Minority gold sold - oz (000) - 11 - 21 32
Spot price - $/oz 1 705 1 705 1 705 1 705 1 705
Price received - $/oz sold 1 718 1 724 1 683 1 697 1 713
Total cash costs - $/oz produced 757 739 1 570 524 737
Total production costs - $/oz produced 981 884 1 743 710 922
Recovered grade calculated using a short ton.
Rounding of figures may result in computational discrepancies.
FINANCIAL RESULTS South Africa Continental Australasia Americas
QUARTER ENDED SEPTEMBER 2011 $'m Africa
Gold income received 675 684 93 448
Cash costs (320) (315) (79) (183)
By-products revenue 22 2 - 32
Total cash costs (298) (313) (79) (151)
Retrenchment costs (2) (1) - (1)
Rehabilitation and other non-cash costs (2) (5)
- (5)
Amortisation of assets (84) (55) (9) (44)
Total production costs (386) (373) (87) (201)
Inventory change - 14 (5) 5
Cost of sales (386) (359) (92) (195)
Adjusted gross profit (loss) 290 325 - 252
Unrealised non-hedge derivatives and other - -
- (1)
commodity contracts
Gross profit (loss) 290 325 - 252
Corporate and other costs (3) - - (9)
Exploration and evaluation costs - (18)
(16) (32)
Intercompany transactions - (11) (1) (1)
Special items (4) (13) 11 1
Operating profit (loss) 282 282 (6) 211
Net finance (costs) income, unwinding of (1) 2 2 (2)
obligations and fair value adjustments
Exchange gain (loss) - (1) - 12
Share of equity accounted investments profit - -
- (8)
Profit (loss) before taxation 280 283 (4) 213
Taxation (96) (102) 1 (27)
Profit (loss) for the period 184 182 (3) 187
Equity shareholders 184 178 (3) 180
Non-controlling interests - 4 - 7
Operating profit (loss) 282 282 (6) 211
Unrealised non-hedge derivatives and other - -
- 1
commodity contracts
Intercompany transactions - 11 1 1
Special items 5 10 - -
Share of associates' EBIT - - - (8)
EBIT 287 303 (5) 204
Amortisation of assets 84 55 9 44
Share of associates' amortisation - -
- -
EBITDA 371 358 4 248
Profit (loss) attributable to equity 184 178
(3) 180
shareholders
Special items 5 10 - -
Share of associates' special items - -
- -
Taxation on items above (2) - - -
Headline earnings (loss) 187 187 (3) 180
Unrealised non-hedge derivatives and other - -
- 1
commodity contracts
Deferred tax on unrealised non-hedge - - - -
derivatives and other commodity contracts
Fair value adjustment on option component of - -
- -
convertible bonds
Fair value loss on mandatory convertible bonds - -
- -
Adjusted headline earnings (loss) 187 187
(3) 181
Ore reserve development capital 71 13
5 17
Stay-in-business capital 43 66 2 40
Project capital 26 22 25 68
Total capital expenditure 140 101 32 125
Capitalised leased assets
Expenditures on intangible assets
Capital expenditure per statement of cash flows
Rounding of figures may result in computational discrepancies.
FINANCIAL RESULTS Corporate Less equity Total
QUARTER ENDED SEPTEMBER 2011 $'m and other Sub-total accounted group
investments
Gold income received - 1 899 (106) 1 793
Cash costs - (897) 56 (841)
By-products revenue - 57 - 57
Total cash costs - (840) 56 (784)
Retrenchment costs - (4) - (4)
Rehabilitation and other non-cash costs -
(11) - (11)
Amortisation of assets (3) (195) 2 (193)
Total production costs (3) (1 050) 58 (992)
Inventory change - 15 - 14
Cost of sales (3) (1 035) 58 (977)
Adjusted gross profit (loss) (4) 864 (48) 816
Unrealised non-hedge derivatives and other commodity contracts -
(1) - (1)
Gross profit (loss) (4) 863 (48) 815
Corporate and other costs (66) (78) - (78)
Exploration and evaluation costs (11)
(78) 2 (76)
Intercompany transactions 13 - - -
Special items (8) (13) - (13)
Operating profit (loss) (75) 694 (47) 648
Net finance (costs) income, unwinding of obligations and fair (17)
(15) (3) (18)
value adjustments
Exchange gain (loss) 5 16 - 15
Share of equity accounted investments profit (2)
(10) 34 24
Profit (loss) before taxation (88) 685 (16) 669
Taxation 4 (220) 16 (204)
Profit (loss) for the period (84) 465 - 465
Equity shareholders (83) 456 - 456
Non-controlling interests (1) 9 - 9
Operating profit (loss) (75) 694 (47) 648
Unrealised non-hedge derivatives and other commodity contracts -
1 - 1
Intercompany transactions (13) - - -
Special items 8 22 - 22
Share of associates' EBIT (2) (10) 47 36
EBIT (82) 707 - 707
Amortisation of assets 3 195 (2) 193
Share of associates' amortisation -
- 2 2
EBITDA (79) 902 - 902
Profit (loss) attributable to equity shareholders (83)
456 - 456
Special items 8 22 - 22
Share of associates' special items -
- - -
Taxation on items above - (2) - (2)
Headline earnings (loss) (75) 476 - 476
Unrealised non-hedge derivatives and other commodity contracts - 1 - 1
Deferred tax on unrealised non-hedge derivatives and other -
- - -
commodity contracts
Fair value adjustment on option component of convertible bonds (11) (11) - (11)
Fair value loss on mandatory convertible bonds (9) (9) - (9)
Adjusted headline earnings (loss) (95)
457 - 457
Ore reserve development capital -
106 - 106
Stay-in-business capital 10 161 (2) 159
Project capital - 141 (18) 123
Total capital expenditure 10 408 (20) 388
Capitalised leased assets -
Expenditures on intangible assets (6)
Capital expenditure per statement of cash flows 382
Rounding of figures may result in computational discrepancies.
OPERATING RESULTS South Africa Continental Australasia Americas Total
NINE MONTHS ENDED SEPTEMBER 2012 Africa
group
UNDERGROUND OPERATION
Area mined - 000 m2 630 - - - 630
Mined - 000 tonnes 4 078 1 189 977 1 722 7 965
Milled / Treated - 000 tonnes 3 602 1 335 1 011 1 985 7 933
Recovered grade - oz/ton 0.227 0.137 0.074 0.157 0.175
- g/tonne 7.80 4.71 2.54 5.37 6.00
Gold produced - oz (000) 903 202 83 342 1 530
SURFACE AND DUMP RECLAMATION
Milled / Treated - 000 tonnes 12 547 265 - - 12 812
Recovered grade - oz/ton 0.010 0.007 - - 0.010
- g/tonne 0.340 0.230 - - 0.340
Gold produced - oz (000) 138 2 - - 140
OPEN-PIT OPERATION
Volume mined - 000 bcm - 41 393 2 662 - 44 055
Mined - 000 tonnes - 97 861 6 980 17 550 122 391
Treated - 000 tonnes - 18 230 1 564 715 20 509
Stripping ratio - ratio - 4.53 4.85 21.14 5.22
Recovered grade - oz/ton - 0.046 0.070 0.170 0.052
- g/tonne - 1.57 2.39 5.84 1.78
Gold produced - oz (000) - 923 120 134 1 177
HEAP LEACH OPERATION
Mined - 000 tonnes - 6 435 - 47 760 54 195
Placed - 000 tonnes - 813 - 16 606 17 419
Stripping ratio - ratio - 16.00 - 1.99 2.31
Recovered grade - oz/ton - 0.023 - 0.012 0.013
- g/tonne - 0.78 - 0.42 0.43
Gold placed - oz (000) - 20 - 222 242
Gold produced - oz (000) - 19 - 218 237
PRODUCTIVITY PER EMPLOYEE
Actual - oz/TEC 5 11 45 18 9
TOTAL
Subsidiaries' gold produced - oz (000) 1 041 992 203 695 2 930
Joint ventures' gold produced - oz (000) - 154 - - 154
Attributable gold produced - oz (000) 1 041 1 146 203 695 3 084
Minority gold produced - oz (000) - 32 - 44 76
Subsidiaries' gold sold - oz (000) 1 012 1 008 202 716 2 938
Joint ventures' gold sold - oz (000) - 150 - - 150
Attributable gold sold - oz (000) 1 012 1 158 202 716 3 088
Minority gold sold - oz (000) - 32 - 47 79
Spot price - $/oz 1 651 1 651 1 651 1 651 1 651
Price received - $/oz sold 1 654 1 646 1 648 1 648 1 649
Total cash costs - $/oz produced 825 851 1 143 670 821
Total production costs - $/oz produced 1 062 1 018 1 268 916 1 027
Recovered grade calculated using a short ton.
Rounding of figures may result in computational discrepancies.
FINANCIAL RESULTS - NINE MONTHS South Africa Continental Australasia Americas
ENDED SEPTEMBER 2012 $'m Africa
Gold income 1 669 1 958 333 1 243
Cash costs (899) (1 008) (232) (635)
By-products revenue 41 5 1 86
Total cash costs (859) (1 003) (232) (549)
Retrenchment costs (5) (1) - (3)
Rehabilitation and other non-cash costs (11) (21)
- (19)
Amortisation of assets (231) (172) (25) (162)
Total production costs (1 106) (1 197) (257) (733)
Inventory change 31 (3) 2 41
Cost of sales (1 075) (1 200) (254) (692)
Adjusted gross profit (loss) 594 758 78 551
Unrealised non-hedge derivatives and other (61) -
- -
commodity contracts
Gross profit (loss) 534 758 78 551
Corporate and other costs (6) (9) (1) (26)
Exploration and evaluation costs (7) (73)
(62) (107)
Intercompany transactions - (58) (10) (2)
Special items (3) (7) 11 1
Operating profit (loss) 518 611 17 417
Net finance (costs) income, unwinding of (5) (3) - (1)
obligations and fair value adjustments
Exchange (loss) gain - (1) 1 (1)
Share of equity accounted investments profit - -
- (19)
Profit (loss) before taxation 512 607 17 396
Taxation 34 (285) (8) (119)
Profit (loss) for the period 546 322 9 277
Equity shareholders 546 336 9 259
Non-controlling interests - (14) - 18
Operating profit (loss) 518 611 17 417
Unrealised non-hedge derivatives and other 61 -
- -
commodity contracts
Intercompany transactions - 58 10 2
Special items 7 (2) 3 1
Share of associates' EBIT - - - (19)
EBIT 586 668 30 401
Amortisation of assets 231 172 25 162
Share of associates' amortisation - -
- -
EBITDA 816 840 55 563
Profit (loss) attributable to equity 546 336
9 259
shareholders
Special items 7 (2) 3 1
Share of associates' special items - -
- -
Taxation on items above (2) 2 (1) -
Headline earnings (loss) 552 336 11 261
Unrealised non-hedge derivatives and other 61 -
- -
commodity contracts
Deferred tax on unrealised non-hedge (17) - - -
derivatives and other commodity contracts
Fair value adjustment on option component of - -
- -
convertible bonds
Fair value loss on mandatory convertible bonds - -
- -
Adjusted headline earnings (loss)
595 336 11 261
Ore reserve development capital 188 34
12 53
Stay-in-business capital 96 232 15 69
Project capital 112 244 149 111
Total capital expenditure 396 510 176 233
Capitalised leased assets
Expenditures on intangible assets
Capital expenditure per statement of cash flows
Rounding of figures may result in computational discrepancies.
FINANCIAL RESULTS - NINE MONTHS Corporate
Less equity Total
ENDED SEPTEMBER 2012 $'m and other Sub-total accounted group
investments
Gold income - 5 203 (248) 4 955
Cash costs 31 (2 744) 162 (2 582)
By-products revenue 1 133 (1) 132
Total cash costs 32 (2 611) 161 (2 450)
Retrenchment costs - (9) - (8)
Rehabilitation and other non-cash costs -
(51) 1 (50)
Amortisation of assets (7) (598) 7 (591)
Total production costs 24 (3 268) 168 (3 100)
Inventory change - 71 (3) 68
Cost of sales 24 (3 197) 165 (3 032)
Adjusted gross profit (loss) 24 2 006 (83) 1 923
Unrealised non-hedge derivatives and other commodity contracts -
(61) - (61)
Gross profit (loss) 24 1 945 (83) 1 862
Corporate and other costs (205) (247) - (247)
Exploration and evaluation costs (26)
(275) 4 (271)
Intercompany transactions 69 - - -
Special items (2) - - -
Operating profit (loss) (140) 1 424 (79) 1 344
Net finance (costs) income, unwinding of obligations and fair 46
36 1 38
value adjustments
Exchange (loss) gain 7 6 3 7
Share of equity accounted investments profit (17)
(36) 51 16
Profit (loss) before taxation (104) 1 429 (24) 1 405
Taxation (19) (397) 24 (373)
Profit (loss) for the period (123) 1 032 - 1 032
Equity shareholders (132) 1 019 - 1 019
Non-controlling interests 9 13 - 13
Operating profit (loss) (140) 1 424 (79) 1 344
Unrealised non-hedge derivatives and other commodity contracts -
61 - 61
Intercompany transactions (69) - - -
Special items (1) 9 - 9
Share of associates' EBIT (7) (26) 79 53
EBIT (218) 1 467 - 1 467
Amortisation of assets 7 598 (7) 591
Share of associates' amortisation -
- 7 7
EBITDA (210) 2 065 - 2 065
Profit (loss) attributable to equity shareholders (132)
1 019 - 1 019
Special items (1) 9 - 9
Share of associates' special items 9
9 - 9
Taxation on items above - (1) - (1)
Headline earnings (loss) (124) 1 036 - 1 036
Unrealised non-hedge derivatives and other commodity contracts - 61 - 61
Deferred tax on unrealised non-hedge derivatives and other -
(17) - (17)
commodity contracts
Fair value adjustment on option component of convertible bonds (66) (66) - (66)
Fair value loss on mandatory convertible bonds (97) (97) - (97)
Adjusted headline earnings (loss)
(287) 917 - 917
Ore reserve development capital -
286 - 286
Stay-in-business capital 35 447 (6) 441
Project capital - 617 (155) 462
Total capital expenditure 35 1 350 (161) 1 189
Capitalised leased assets (2)
Expenditures on intangible assets (52)
Capital expenditure per statement of cash flows 1 135
Rounding of figures may result in computational discrepancies.
OPERATING RESULTS South Africa Continental Australasia Americas Total
NINE MONTHS ENDED SEPTEMBER 2011 Africa
group
UNDERGROUND OPERATION
Area mined - 000 m2 770 - - - 770
Mined - 000 tonnes 4 757 1 364 726 1 491 8 337
Milled / Treated - 000 tonnes 4 317 1 480 727 1 546 8 070
Recovered grade - oz/ton 0.231 0.139 0.102 0.189 0.194
- g/tonne 7.91 4.76 3.48 6.49 6.66
Gold produced - oz (000) 1 098 226 81 323 1 729
SURFACE AND DUMP RECLAMATION
Milled / Treated - 000 tonnes 7 960 - - - 7 960
Recovered grade - oz/ton 0.015 - - - 0.015
- g/tonne 0.50 - - - 0.52
Gold produced - oz (000) 128 5 - - 133
OPEN-PIT OPERATION
Volume mined - 000 bcm - 39 663 1 409 - 41 071
Mined - 000 tonnes - 94 495 3 651 20 233 118 378
Treated - 000 tonnes - 16 996 1 911 688 19 595
Stripping ratio - ratio - 4.44 6.62 23.45 5.33
Recovered grade - oz/ton - 0.048 0.048 0.167 0.052
- g/tonne - 1.64 1.65 5.72 1.79
Gold produced - oz (000) - 898 102 127 1 126
HEAP LEACH OPERATION
Mined - 000 tonnes - 4 666 - 49 314 53 980
Placed - 000 tonnes - 825 - 16 011 16 836
Stripping ratio - ratio - 6.92 - 2.18 2.35
Recovered grade - oz/ton - 0.031 - 0.012 0.013
- g/tonne - 1.05 - 0.40 0.43
Gold placed - oz (000) - 28 - 206 234
Gold produced - oz (000) - 21 - 208 229
PRODUCTIVITY PER EMPLOYEE
Actual - oz/TEC 6 11 38 21 9
TOTAL
Subsidiaries' gold produced - oz (000) 1 226 965 183 657 3 031
Joint ventures' gold produced - oz (000) - 186 - - 186
Attributable gold produced - oz (000) 1 226 1 151 183 657 3 217
Minority gold produced - oz (000) - 33 - 58 91
Subsidiaries' gold sold - oz (000) 1 225 955 187 661 3 028
Joint ventures' gold sold - oz (000) - 184 - - 184
Attributable gold sold - oz (000) 1 225 1 139 187 661 3 212
Minority gold sold - oz (000) - 35 - 58 93
Spot price - $/oz 1 534 1 534 1 534 1 534 1 534
Price received - $/oz sold 1 542 1 540 1 511 1 541 1 539
Total cash costs - $/oz produced 693 753 1 414 498 716
Total production costs - $/oz produced 918 902 1 570 720 910
Recovered grade calculated using a short ton.
Rounding of figures may result in computational discrepancies.
FINANCIAL RESULTS - NINE MONTHS South Africa Continental Australasia Americas
ENDED SEPTEMBER 2011 $'m Africa
Gold income received 1 889 1 807 282 1 095
Cash costs (932) (898) (260) (493)
By-products revenue 82 6 1 86
Total cash costs (850) (893) (259) (407)
Retrenchment costs (7) (1) - (2)
Rehabilitation and other non-cash costs (6) (20)
(1) (46)
Amortisation of assets (263) (152) (28) (122)
Total production costs (1 126) (1 067) (287) (577)
Inventory change - (9) - 42
Cost of sales (1 126) (1 076) (287) (536)
Adjusted gross profit (loss) 763 731 (5) 559
Unrealised non-hedge derivatives and other - -
- (1)
commodity contracts
Gross profit (loss) 763 732 (5) 558
Corporate and other costs (9) (7) (2) (33)
Exploration and evaluation costs (1) (51)
(38) (81)
Intercompany transactions - (34) (1) (2)
Special items (12) 561 35 2
Operating profit (loss) 742 1 201 (12) 445
Net finance (costs) income, unwinding of (4) (1) 2 (3)
obligations and fair value adjustments
Exchange gain (loss) - (8) - 12
Share of equity accounted investments profit - -
- (15)
(loss)
Profit (loss) before taxation 738 1 192 (10) 439
Taxation (230) (214) 1 (68)
Profit (loss) for the period 509 977 (9) 371
Equity shareholders 509 964 (9) 359
Non-controlling interests - 14 - 12
Operating profit (loss) 742 1 201 (12) 445
Unrealised non-hedge derivatives and other - -
- 1
commodity contracts
Intercompany transactions - 34 1 2
Special items 14 (539) (3) (1)
Share of associates' EBIT - - - (15)
EBIT 756 695 (14) 432
Amortisation of assets 263 152 28 122
Share of associates' amortisation - -
- -
EBITDA 1 019 848 14 553
Profit (loss) attributable to equity 509 964
(9) 359
shareholders
Special items 14 (539) (3) (1)
Share of associates' special items - -
- -
Taxation on items above (7) - 1 -
Headline earnings (loss) 516 424 (11) 358
Unrealised non-hedge derivatives and other - -
- 1
commodity contracts
Deferred tax on unrealised non-hedge - - - -
derivatives and other commodity contracts
Fair value adjustment on option component of - -
- -
convertible bond
Fair value loss on mandatory convertible bond - -
- -
Adjusted headline earnings (loss) 516 424
(11) 359
Ore reserve development capital 204 37
9 48
Stay-in-business capital 86 162 6 81
Project capital 61 69 46 179
Total capital expenditure 351 268 62 308
Capitalised leased assets
Expenditures on intangible assets
Capital expenditure per statement of cash flows
Rounding of figures may result in computational discrepancies.
FINANCIAL RESULTS - NINE MONTHS Corporate
Less equity Total
ENDED SEPTEMBER 2011 $'m and other Sub-total accounted group
investments
Gold income received - 5 072 (282) 4 791
Cash costs 20 (2 564) 158 (2 406)
By-products revenue 1 176 (1) 175
Total cash costs 21 (2 388) 157 (2 231)
Retrenchment costs - (11) - (10)
Rehabilitation and other non-cash costs -
(73) 1 (72)
Amortisation of assets (9) (574) 6 (566)
Total production costs 12 (3 045) 164 (2 881)
Inventory change - 33 (2) 31
Cost of sales 12 (3 012) 162 (2 849)
Adjusted gross profit (loss) 12 2 061 (120) 1 942
Unrealised non-hedge derivatives and other commodity contracts -
(1) - (1)
Gross profit (loss) 12 2 060 (119) 1 941
Corporate and other costs (181) (232) (1) (233)
Exploration and evaluation costs (29)
(200) 4 (196)
Intercompany transactions 37 - - -
Special items (568) 18 - 18
Operating profit (loss) (729) 1 647 (117) 1 530
Net finance (costs) income, unwinding of obligations and fair 83
78 (3) 74
value adjustments
Exchange gain (loss) 5 8 3 12
Share of equity accounted investments profit (loss) (7)
(21) 78 57
Profit (loss) before taxation (648) 1 711 (38) 1 673
Taxation (4) (515) 38 (477)
Profit (loss) for the period (652) 1 196 - 1 196
Equity shareholders (655) 1 167 - 1 167
Non-controlling interests 3 29 - 29
Operating profit (loss) (729) 1 647 (117) 1 530
Unrealised non-hedge derivatives and other commodity contracts -
1 - 1
Intercompany transactions (37) - - -
Special items 561 31 - 31
Share of associates' EBIT (4) (19) 117 98
EBIT (209) 1 660 - 1 660
Amortisation of assets 9 574 (6) 567
Share of associates' amortisation -
- 6 6
EBITDA (201) 2 234 - 2 234
Profit (loss) attributable to equity shareholders (655)
1 167 - 1 167
Special items 561 31 - 31
Share of associates' special items 2
2 - 2
Taxation on items above - (7) - (7)
Headline earnings (loss) (92) 1 194 - 1 194
Unrealised non-hedge derivatives and other commodity contracts - 1 - 1
Deferred tax on unrealised non-hedge derivatives and other -
- - -
commodity contracts
Fair value adjustment on option component of convertible bond (98) (98) - (98)
Fair value loss on mandatory convertible bond (95) (95) - (95)
Adjusted headline earnings (loss) (286)
1 002 - 1 002
Ore reserve development capital -
299 - 299
Stay-in-business capital 13 348 (4) 344
Project capital - 355 (54) 301
Total capital expenditure 14 1 002 (58) 944
Capitalised leased assets 1
Expenditures on intangible assets (6)
Capital expenditure per statement of cash flows 939
Rounding of figures may result in computational discrepancies.
Administrative information
ANGLOGOLD ASHANTI LIMITED
Registration No. 1944/017354/06
Incorporated in the Republic of South
Africa
Share codes:
ISIN: ZAE000043485
JSE: ANG
LSE: AGD
NYSE: AU
ASX: AGG
GhSE(Shares): AGA
GhSE(GhDS): AAD
JSE Sponsor: UBS (South Africa)
(Pty) Ltd
Auditors: Ernst & Young Inc.
Offices
Registered and Corporate
76 Jeppe Street
Newtown 2001
(PO Box 62117, Marshalltown
2107)
South Africa
Telephone: +27 11 637 6000
Fax: +27 11 637 6624
Australia
Level 13, St Martins Tower
44 St George's Terrace
Perth, WA 6000
(PO Box Z5046, Perth WA 6831)
Australia
Telephone: +61 8 9425 4602
Fax: +61 8 9425 4662
Ghana
Gold House
Patrice Lumumba Road
(PO Box 2665)
Accra
Ghana
Telephone: +233 303 772190
Fax: +233 303 778155
United Kingdom Secretaries
St James's Corporate Services
Limited
6 St James's Place
London SW1A 1NP
England
Telephone: +44 20 7499 3916
Fax: +44 20 7491 1989
E-mail: jane.kirton@corpserv.co.uk
Directors
Executive
M Cutifani~ (Chief Executive Officer)
S Venkatakrishnan*§ (Chief Financial Officer)
Non-Executive
T T Mboweni^ (Chairman)
F B Arisman#
R Gasant^
Ms N P January-Bardill^
M J Kirkwood*
W A Nairn^
Prof L W Nkuhlu^
F Ohene-Kena+
S M Pityana^
R J Ruston~
* British # American
~ Australian ^ South African
+ Ghanaian § Indian
Officers
Group General Counsel and Company
Secretary: Ms M E Sanz Perez
Investor Relations Contacts
South Africa
Fundisa Mgidi
Telephone: +27 637 6763
Mobile: +27 82 374 8820
E-mail: FMgidi@AngloGoldAshanti.com
United Kingdom
Michael Bedford
Telephone+44 (0) 1225 93 8483
Mobile: +44 (0) 779 497 7881
E-mail: mbedford@AngloGoldAshanti.com
United States
Stewart Bailey
Telephone: +1 212 858 7701
Mobile: +1 646 338 4337
E-mail: sbailey@AngloGoldAshanti.com
Sabrina Brockman
Telephone: +1 212 858 7702
Mobile: +1 646 379 2555
E-mail: sbrockman@AngloGoldAshantiNA.com
General E-mail enquiries
investors@AngloGoldAshanti.com
AngloGold Ashanti website
http://www.AngloGoldAshanti.com
Company secretarial E-mail
Companysecretary@AngloGoldAshanti.com
AngloGold Ashanti posts information that is
important to investors on the main page of its
website at www.anglogoldashanti.com and
under the "Investors" tab on the main page.
This information is updated regularly. Investors
should visit this website to obtain important
information about AngloGold Ashanti.
PUBLISHED BY ANGLOGOLD ASHANTI
Share Registrars
South Africa
Computershare Investor Services (Pty)
Limited
Ground Floor, 70 Marshall Street
Johannesburg 2001
(PO Box 61051, Marshalltown
2107)
South Africa
Telephone: 0861 100 950 (in SA)
Fax: +27 11 688 5218
web.queries@computershare.co.za
United Kingdom
Computershare Investor Services PLC
The Pavilions
Bridgwater Road
Bristol BS13 8AE
England
Telephone: +44 870 702 0000
Fax: +44 870 703 6119
Australia
Computershare Investor Services Pty
Limited
Level 2, 45 St George's Terrace
Perth, WA 6000
(GPO Box D182 Perth, WA 6840)
Australia
Telephone: +61 8 9323 2000
Telephone: 1300 55 2949 (in Australia)
Fax: +61 8 9323 2033
Ghana
NTHC Limited
Martco House
Off Kwame Nkrumah Avenue
PO Box K1A 9563 Airport
Accra
Ghana
Telephone: +233 302 229664
Fax: +233 302 229975
ADR Depositary
The Bank of New York Mellon ("BoNY")
BNY Shareowner Services
PO Box 358016
Pittsburgh, PA 15252-8016
United States of America
Telephone: +1 800 522 6645 (Toll free in
USA) or +1 201 680 6578
(outside USA)
E-mail: shrrelations@mellon.com
Website:
www.bnymellon.com.comshareowner
Global BuyDIRECTSM
BoNY maintains a direct share purchase
and dividend reinvestment plan for
ANGLOGOLD ASHANTI.
Telephone: +1-888-BNY-ADRS