SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF
THE SECURITIES EXCHANGE ACT OF 1934
Report on Form 6-K dated July 31, 2008
Commission File Number 1-14846
AngloGold Ashanti Limited
(Translation of registrant’s name into English)
76 Jeppe Street
Newtown, 2001
(P.O. Box 62117, Marshalltown, 2107)
South Africa
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F
or Form 40-F.
Form 20-F X Form 40-F
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T
Rule 101(b)(1):
Yes
No X
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T
Rule 101(b)(7):
Rule 101(b)(7):
Yes
No X
Indicate by check mark whether the registrant by furnishing the information contained in this Form is
also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the
Securities Exchange Act of 1934.
also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the
Securities Exchange Act of 1934.
Yes
No X
Enclosure: Press release REPORT FOR THE QUARTER AND SIX MONTHS ENDED 30 JUNE 2008
Quarter 2 2008
Report
for the quarter and six months ended 30 June 2008
Group results for the quarter and six months ended 30 June 2008 ….
•
Significant progress on safety on all fronts continues, including 110 fatality free days achieved.
•
Gold production at 1.25Moz, 5% higher than prior quarter and 3% above guidance.
•
Total cash costs at $434/oz, better than guidance and marginally higher than March quarter.
•
Highly successful execution of rights issue with $1.7bn raised and an exceptional 98% take up from rights holders.
•
Hedge book commitments reduced by 3.15Moz during the quarter, 3 months ahead of schedule, with commitments down to 6.88Moz.
•
1m pounds of uranium contracts cancelled, providing increased exposure to spot uranium prices from 2009.
•
Following hedge book reductions, adjusted headline loss at $946m. Adjusted headline earnings, normalised for hedge reduction and other
once-off items at $50m.
once-off items at $50m.
•
Interim dividend of 50 South African cents per share and 6.7 US cents per share declared for the six months ended 30 June 2008.
Quarter
Six
months
Quarter
Six months
ended
Jun
2008
ended
Mar
2008
ended
Jun
2008
ended
Jun
2007
ended
Jun
2008
ended
Mar
2008
ended
Jun
2008
ended
Jun
2007
SA rand / Metric
US dollar / Imperial
Operating review
Gold
Produced
- kg / oz (000)
38,984
37,210
76,194
83,198
1,253
1,196
2,450
2,675
Price received
1
- R/kg / $/oz
(44,303)
183,945
67,390
138,807
(157)
755
289
604
Price received normalised for accelerated
settlement of non-hedge derivatives
settlement of non-hedge derivatives
1
- R/kg / $/oz
178,796
183,945
181,303
138,807
717
755
736
604
Total cash costs
- R/kg / $/oz
108,195
104,461
106,429
76,406
434
430
433
333
Total production costs
- R/kg / $/oz
138,115
136,200
137,238
99,872
554
561
558
435
Financial review
Gross profit (loss)
- Rm / $m
787
(3,359)
(2,573)
2,708
36
(77)
(41)
378
Gross (loss) profit adjusted for the gain (loss)
on unrealised non-hedge derivatives and other
commodity contracts
on unrealised non-hedge derivatives and other
commodity contracts
2
2
- Rm / $m
(6,909)
2,095
(4,814)
3,520
(866)
274
(592)
492
Adjusted gross profit normalised for accelerated
settlement of non-hedge derivatives
settlement of non-hedge derivatives
2
- Rm / $m
1,726
2,095
3,821
3,520
223
274
497
492
(Loss) profit attributable to equity
shareholders
shareholders
- Rm / $m
(817)
(3,812)
(4,630)
933
(168)
(142)
(310)
131
Headline (loss) earnings
- Rm / $m
(1,354)
(3,880)
(5,234)
930
(237)
(151)
(388)
130
Headline (loss) earnings adjusted for the gain (loss)
on unrealised non-hedge derivatives, other commodity
contracts and fair value adjustments on convertible
bond
on unrealised non-hedge derivatives, other commodity
contracts and fair value adjustments on convertible
bond
4
- Rm / $m
(7,518)
813
(6,705)
1,280
(946)
105
(842)
179
Capital expenditure
- Rm / $m
2,357
1,930
4,287
3,396
304
257
561
476
(Loss) profit per ordinary share
- cents/share
Basic
(289)
(1,351)
(1,639)
332
(59)
(50)
(110)
47
Diluted
(289)
(1,351)
(1,639)
331
(59)
(50)
(110)
46
Headline
(479)
(1,376)
(1,853)
331
(84)
(54)
(137)
46
Headline (loss) earnings adjusted for the gain (loss)
on unrealised non-hedge derivatives, other commodity
contracts and fair value adjustments on convertible
bond
on unrealised non-hedge derivatives, other commodity
contracts and fair value adjustments on convertible
bond
4
2
- cents/share
(2,661)
288
(2,374)
455
(335)
37
(298)
64
Notes:
1. Refer to note C “Non-GAAP disclosure” for the definition.
3. Refer to note 9 “Notes” for the definition.
2. Refer to note B “Non-GAAP disclosure” for the definition.
4. Refer to note A “Non-GAAP disclosure”.
$ represents US dollar, unless otherwise stated.
Rounding of figures may result in computational discrepancies.
Rounding of figures may result in computational discrepancies.
Quarterly Report June 2008 - www.AnglogoldAshanti.com
Operations at a glance
for the quarter ended 30 June 2008
Production
Total
cash
costs
Gross
(loss) profit
adjusted for
the gain (loss)
on unrealised
non-hedge
derivatives
and other
commodity
contracts
1
Adjusted
gross
profit (loss)
normalised
for accelerated
settlement
of non-hedge
derivatives
1
oz (000)
%
Variance
2
$/oz
%
Variance
2
$m
$m
%
Variance
2
Mponeng
160
21
227
(10)
(75)
65
25
AngloGold Ashanti Brasil Mineração
82
14
323
2
(58)
24
(4)
TauTona
91
23
339
(12)
(58)
20
18
Cripple Creek & Victor J.V.
59
2
301
6
(37)
19
(14)
Siguiri
3
86
(8)
434
–
(31)
17
(19)
Kopanang
96
7
316
(10)
(73)
12
(37)
Morila
3
46
15
426
4
(30)
12
9
Sunrise Dam
114
(4)
553
22
(83)
10
(57)
Great Noligwa
96
(10)
432
8
(86)
7
(73)
Iduapriem
46
(2)
493
9
(33)
7
(30)
Sadiola
3
45
25
408
1
(43)
7
(36)
Serra Grande
3
22
5
307
6
(11)
6
(14)
Yatela
3
15
(12)
573
10
(14)
3
(25)
Tau Lekoa
35
–
554
5
(33)
3
–
Savuka
18
29
440
20
(12)
2
(33)
Navachab
16
7
599
22
(8)
–
(100)
Geita
74
16
630
(12)
(66)
(4)
69
Moab Khotsong
28
12
512
(11)
(30)
(5)
(600)
Cerro Vanguardia
3
27
(4)
870
57
(24)
(6)
(186)
Obuasi
79
(9)
612
18
(72)
(8)
(500)
Other
18
(18)
12
31
72
AngloGold Ashanti
1,253
5
434
1
(866)
223
(19)
1
Refer to note B “Non-GAAP disclosure” for the definition.
2
Variance June 2008 quarter on March 2008 quarter – increase (decrease).
3
Attributable.
Rounding of figures may result in computational discrepancies.
Financial and operating review
OVERVIEW FOR THE QUARTER
The encouraging safety trend from the first quarter
continued, with the company recording significant
improvements in injury frequency rates. For the
first time in its history, the company achieved
110 days without a fatality, with no fatalities
recorded during the second quarter. Immediately
after the quarter close, however, TauTona
experienced a seismic event, resulting in one
fatality. While we are saddened by our most
recent loss, we are encouraged with progress and
the commitment of all our employees on this
important aspect of our business. Since launching
“Safety is our first value” campaign on
8 November 2007, the company has reported a
75% decrease in fatal incidents.
continued, with the company recording significant
improvements in injury frequency rates. For the
first time in its history, the company achieved
110 days without a fatality, with no fatalities
recorded during the second quarter. Immediately
after the quarter close, however, TauTona
experienced a seismic event, resulting in one
fatality. While we are saddened by our most
recent loss, we are encouraged with progress and
the commitment of all our employees on this
important aspect of our business. Since launching
“Safety is our first value” campaign on
8 November 2007, the company has reported a
75% decrease in fatal incidents.
The South African operations reported a 13%
reduction in the lost time injury frequency rate,
driven by an 11% improvement in stope risk
assessments. Seismicity related fall of ground
accidents have now declined for the sixth
consecutive quarter.
reduction in the lost time injury frequency rate,
driven by an 11% improvement in stope risk
assessments. Seismicity related fall of ground
accidents have now declined for the sixth
consecutive quarter.
For the quarter, seven operations remained injury
free; Navachab, Sadiola, Yatela, Morila, CC&V,
Serra Grande and Sunrise Dam. Mponeng was
awarded the Mine Health and Safety Council’s
award for surpassing the 1 million fatality-free
shifts milestone. This is the second time in this
deep level South African mine’s history that this
accomplishment has been achieved.
free; Navachab, Sadiola, Yatela, Morila, CC&V,
Serra Grande and Sunrise Dam. Mponeng was
awarded the Mine Health and Safety Council’s
award for surpassing the 1 million fatality-free
shifts milestone. This is the second time in this
deep level South African mine’s history that this
accomplishment has been achieved.
The company once again delivered on its
production forecast for the quarter. Gold production
was 5% higher at 1.25Moz, reflecting higher
production in South Africa, Brazil, Mali and
Tanzania. Total cash costs for the group increased
marginally from $430/oz to $434/oz, driven
primarily by input cost inflation, partially offset by
the higher gold production and stockpile
production forecast for the quarter. Gold production
was 5% higher at 1.25Moz, reflecting higher
production in South Africa, Brazil, Mali and
Tanzania. Total cash costs for the group increased
marginally from $430/oz to $434/oz, driven
primarily by input cost inflation, partially offset by
the higher gold production and stockpile
movements. Gold production exceeded guidance
for the second quarter, in part due to improved
performances from Mponeng, TauTona and Geita.
Improved production positively impacted reported
costs for the second consecutive quarter.
for the second quarter, in part due to improved
performances from Mponeng, TauTona and Geita.
Improved production positively impacted reported
costs for the second consecutive quarter.
The South African operations had a solid quarter,
with gold production 9% higher at 16,867kg, led
by an increase in gold production of 22% from
both Mponeng and TauTona. Mponeng increased
gold production as a result of improved face
length availability, higher face advance, treatment
of additional surface stockpile and increased
vamping activities; while TauTona benefited from
higher face advance and increased reef
with gold production 9% higher at 16,867kg, led
by an increase in gold production of 22% from
both Mponeng and TauTona. Mponeng increased
gold production as a result of improved face
length availability, higher face advance, treatment
of additional surface stockpile and increased
vamping activities; while TauTona benefited from
higher face advance and increased reef
development. Great Noligwa saw gold production
reduce by 10% to 2,997kg, following a ten-day
stoppage resulting from safety interventions. Total
cash costs for the South African operations
reduced marginally to R87,459/kg ($352/oz),
following the improved gold production and
improved by-product contribution, partially offset
by the higher inflationary impact.
reduce by 10% to 2,997kg, following a ten-day
stoppage resulting from safety interventions. Total
cash costs for the South African operations
reduced marginally to R87,459/kg ($352/oz),
following the improved gold production and
improved by-product contribution, partially offset
by the higher inflationary impact.
In Brazil, AngloGold Ashanti Brasil Mineração had
a strong quarter with gold production 14% higher at
82,000oz, through the mining of an increased
proportion of higher grade ore from the Cuiabá
operation. Total cash costs for the Brazil operations
were marginally higher at $341/oz, principally due
to the impact of the stronger local currency.
a strong quarter with gold production 14% higher at
82,000oz, through the mining of an increased
proportion of higher grade ore from the Cuiabá
operation. Total cash costs for the Brazil operations
were marginally higher at $341/oz, principally due
to the impact of the stronger local currency.
The Mali assets had a strong performance with
gold production increasing 13% to 106,000oz,
with Morila 15% higher on the back of improved
throughput and grade, while Sadiola was 25%
higher due to an increase in yield following
improved performance of the gravity circuit which
resulted in a higher overall recovery. Total cash
costs for the Mali operations was 4% higher at
$432/oz, following inflationary pressures on fuel in
particular, combined with the effect of a stronger
US dollar.
gold production increasing 13% to 106,000oz,
with Morila 15% higher on the back of improved
throughput and grade, while Sadiola was 25%
higher due to an increase in yield following
improved performance of the gravity circuit which
resulted in a higher overall recovery. Total cash
costs for the Mali operations was 4% higher at
$432/oz, following inflationary pressures on fuel in
particular, combined with the effect of a stronger
US dollar.
Geita in Tanzania showed an improvement from
the prior quarter, as grades stabilised and gold
production increased 16% to 74,000oz.
the prior quarter, as grades stabilised and gold
production increased 16% to 74,000oz.
Consequently, total cash costs reduced 12% to
$630/oz. Progress on the performance turnaround
was promising for the quarter, and the recovery
plan which was presented to the Executive
Management team has been endorsed for
implementation.
$630/oz. Progress on the performance turnaround
was promising for the quarter, and the recovery
plan which was presented to the Executive
Management team has been endorsed for
implementation.
In Ghana, Obuasi had a difficult quarter with gold
production declining 9%, following lower delivered
grades and lower throughput resulting from
unscheduled plant stoppages for maintenance
and the negative impact of power shortages. Total
cash costs for Obuasi increased by 18% to
$612/oz. Performance at Obuasi this quarter was
unacceptable. While good progress was made in
identifying the steps necessary to effect the
targeted performance turnaround, actual control in
key areas was below expectations. Additional
steps are being taken to support the operating
team, with the establishment of a dedicated
project recovery team.
production declining 9%, following lower delivered
grades and lower throughput resulting from
unscheduled plant stoppages for maintenance
and the negative impact of power shortages. Total
cash costs for Obuasi increased by 18% to
$612/oz. Performance at Obuasi this quarter was
unacceptable. While good progress was made in
identifying the steps necessary to effect the
targeted performance turnaround, actual control in
key areas was below expectations. Additional
steps are being taken to support the operating
team, with the establishment of a dedicated
project recovery team.
The company’s rights offer was completed in early
July 2008, raising $1.7bn. The transaction was
highly successful, with a 98% take up from rights
holders to acquire rights offer shares. Applications
for additional rights shares representing nearly six
times the number of rights offer shares were
received. The strong reception for the rights offer
saw the company’s share price actually increasing
between announcement and completion of the
rights offer, despite difficult market conditions.
July 2008, raising $1.7bn. The transaction was
highly successful, with a 98% take up from rights
holders to acquire rights offer shares. Applications
for additional rights shares representing nearly six
times the number of rights offer shares were
received. The strong reception for the rights offer
saw the company’s share price actually increasing
between announcement and completion of the
rights offer, despite difficult market conditions.
This encouraged the company to make
substantial progress ahead of schedule in the
reduction of the hedge book. The company
capitalised on a weaker gold market during the
quarter to execute a combination of delivery into
and early settlement of non-hedge derivatives,
and the number of committed ounces reduced
from 10.03Moz at the end of the March 2008
quarter to 6.88Moz at 30 June 2008. The
restructuring resulted in the received price being
negative and adjusted headline earnings impacted
by a corresponding after tax charge of $977m.
substantial progress ahead of schedule in the
reduction of the hedge book. The company
capitalised on a weaker gold market during the
quarter to execute a combination of delivery into
and early settlement of non-hedge derivatives,
and the number of committed ounces reduced
from 10.03Moz at the end of the March 2008
quarter to 6.88Moz at 30 June 2008. The
restructuring resulted in the received price being
negative and adjusted headline earnings impacted
by a corresponding after tax charge of $977m.
In addition, the company also cancelled 1.0 million
pounds of uranium contracts during the quarter,
which represents a reduction of 30% of uranium
contracts outstanding as at 1 January 2008, at an
after tax charge of $11m. This will position
AngloGold Ashanti to begin to participate in the
spot uranium market from 2009, which in turn will
provide by-product revenue, to the benefit of total
cash costs.
pounds of uranium contracts during the quarter,
which represents a reduction of 30% of uranium
contracts outstanding as at 1 January 2008, at an
after tax charge of $11m. This will position
AngloGold Ashanti to begin to participate in the
spot uranium market from 2009, which in turn will
provide by-product revenue, to the benefit of total
cash costs.
As a result of the reduction in gold non-hedge
derivatives ($977m) and uranium commodity
contracts ($11m), an adjusted headline loss of
derivatives ($977m) and uranium commodity
contracts ($11m), an adjusted headline loss of
$946m was recorded for the quarter. Excluding
the impact of these adjustments, adjusted
headline earnings would have been $50m against
the $105m recorded in the prior quarter. The
reduced earnings is the result of once-off tax
credits received in the prior quarter and the impact
of a $38/oz lower received price.
the impact of these adjustments, adjusted
headline earnings would have been $50m against
the $105m recorded in the prior quarter. The
reduced earnings is the result of once-off tax
credits received in the prior quarter and the impact
of a $38/oz lower received price.
On 16 May 2008 the sale of various exploration
interests in Colombia to B2Gold Corporation
(B2Gold) was completed, with the company
receiving 25m common shares and 21.4m share
purchase warrants in B2Gold, which could result
in a fully diluted interest in B2Gold of
approximately 26%. This transaction allows
AngloGold Ashanti to build on its strategy in
Colombia of continuing to leverage its first mover
advantage and developing its exploration portfolio,
which includes its initial Inferred Resource of
12.9Moz at its 100% owned La Colosa project.
interests in Colombia to B2Gold Corporation
(B2Gold) was completed, with the company
receiving 25m common shares and 21.4m share
purchase warrants in B2Gold, which could result
in a fully diluted interest in B2Gold of
approximately 26%. This transaction allows
AngloGold Ashanti to build on its strategy in
Colombia of continuing to leverage its first mover
advantage and developing its exploration portfolio,
which includes its initial Inferred Resource of
12.9Moz at its 100% owned La Colosa project.
On 1 July 2008, shareholders of Golden Cycle
Gold Corporation approved the acquisition by
AngloGold Ashanti, in an all share transaction that
has resulted in CC&V being fully owned by the
company.
Gold Corporation approved the acquisition by
AngloGold Ashanti, in an all share transaction that
has resulted in CC&V being fully owned by the
company.
AngloGold Ashanti also sold its 50% interest in
Nufcor International Limited, a London based
uranium marketing, trading and advisory
business, to Constellation Energy Commodities
Group for gross proceeds of $50m. This
transaction enables the company to focus on its
core gold and uranium mining business, while
retaining its 100% interest in Nuclear Fuels
Corporation of South Africa (Pty) Limited, its local
uranium calcining business.
Nufcor International Limited, a London based
uranium marketing, trading and advisory
business, to Constellation Energy Commodities
Group for gross proceeds of $50m. This
transaction enables the company to focus on its
core gold and uranium mining business, while
retaining its 100% interest in Nuclear Fuels
Corporation of South Africa (Pty) Limited, its local
uranium calcining business.
In relation to power management in South Africa,
Eskom, the national provider, has maintained a
steady power supply of 96.5% during the second
quarter. The company successfully operated at
full production utilising less than 94% of power
supply, following continuing the implementation of
energy saving initiatives.
Eskom, the national provider, has maintained a
steady power supply of 96.5% during the second
quarter. The company successfully operated at
full production utilising less than 94% of power
supply, following continuing the implementation of
energy saving initiatives.
Eskom has also undertaken to continue to provide
consistent power throughout the winter period and
subject to this stable power supply, production for
2008 is expected to be between 4.9Moz to
5.1Moz. Given the higher inflationary trends
consistent power throughout the winter period and
subject to this stable power supply, production for
2008 is expected to be between 4.9Moz to
5.1Moz. Given the higher inflationary trends
currently being experienced, higher power tariffs
in South Africa and Ghana, total cash costs are
anticipated to be between $450/oz and $460/oz,
based on the following average exchange rate
assumptions: R7.73/$, A$/$0.94, BRL1.66/$ and
Argentinean peso 3.15/$.
in South Africa and Ghana, total cash costs are
anticipated to be between $450/oz and $460/oz,
based on the following average exchange rate
assumptions: R7.73/$, A$/$0.94, BRL1.66/$ and
Argentinean peso 3.15/$.
Production for the third quarter of 2008, based on
a 96.5% stabilised power in South Africa, is
estimated to be 1.27Moz. Given winter power
tariffs in South Africa, the treatment of lower grade
stockpiles at Geita, Siguiri and Sunrise Dam and
an inventory movement at CC&V, and inflationary
trends currently being experienced, total cash
costs for the third quarter are expected to be
unusually high at around $490/oz. This assumes
the following exchange rates: R7.80/$, A$/$0.96,
BRL1.60/$ and Argentinean peso 3.12/$.
a 96.5% stabilised power in South Africa, is
estimated to be 1.27Moz. Given winter power
tariffs in South Africa, the treatment of lower grade
stockpiles at Geita, Siguiri and Sunrise Dam and
an inventory movement at CC&V, and inflationary
trends currently being experienced, total cash
costs for the third quarter are expected to be
unusually high at around $490/oz. This assumes
the following exchange rates: R7.80/$, A$/$0.96,
BRL1.60/$ and Argentinean peso 3.12/$.
An interim dividend of 50 South African cents
(6.7 US cents) per share has been declared for
the six months ended 30 June 2008.
(6.7 US cents) per share has been declared for
the six months ended 30 June 2008.
OPERATING RESULTS FOR THE QUARTER
SOUTH AFRICA
Great Noligwa lost ten production shifts due to
safety issues and gold production was directed
towards reducing inventory lock-ups, which were
of a lower grade. As a result, the recovered grade
declined 11% against the previous quarter, with
gold production down 10% to 2,997kg (96,000oz).
Consequently, total cash costs deteriorated 11%
to R107,178/kg ($432/oz) and the adjusted gross
profit normalised for the accelerated hedge
reduction was R54m ($7m), against R202m
($26m) reported in the prior quarter. Including the
impact of the early settlement of non-hedge
derivatives, a loss of R682m ($86m) was incurred.
safety issues and gold production was directed
towards reducing inventory lock-ups, which were
of a lower grade. As a result, the recovered grade
declined 11% against the previous quarter, with
gold production down 10% to 2,997kg (96,000oz).
Consequently, total cash costs deteriorated 11%
to R107,178/kg ($432/oz) and the adjusted gross
profit normalised for the accelerated hedge
reduction was R54m ($7m), against R202m
($26m) reported in the prior quarter. Including the
impact of the early settlement of non-hedge
derivatives, a loss of R682m ($86m) was incurred.
The Lost-Time Injury Frequency Rate (LTIFR)
was 18.63 lost-time injuries per million hours
worked (15.10 for the previous quarter).
was 18.63 lost-time injuries per million hours
worked (15.10 for the previous quarter).
Gold production at Kopanang increased by 7% to
2,997kg (96,000oz), as a result of increased
volume, following reduced production stoppages
and improved face length. Yield improved by 2%,
following an increase in vamping activities and a
reduction in underground inventory. Due to the
improved production, total cash costs decreased
by 8% to R78,460/kg ($316/oz). The adjusted
gross profit normalised for the accelerated hedge
2,997kg (96,000oz), as a result of increased
volume, following reduced production stoppages
and improved face length. Yield improved by 2%,
following an increase in vamping activities and a
reduction in underground inventory. Due to the
improved production, total cash costs decreased
by 8% to R78,460/kg ($316/oz). The adjusted
gross profit normalised for the accelerated hedge
reduction was R90m ($12m), as against R151m
($19m) recorded in the prior quarter. Including the
impact of the early settlement of non-hedge
derivatives, a loss of R579m ($73m) was incurred.
($19m) recorded in the prior quarter. Including the
impact of the early settlement of non-hedge
derivatives, a loss of R579m ($73m) was incurred.
The LTIFR improved to 13.17 (14.37).
The build-up at Moab Khotsong continues with
volume mined up 31%, while yield declined 12% as
a result of increased mining in lower grade panels
due to flexibility constraints. Gold production was
15% higher at 881kg (28,000oz) and total cash
costs were 10% lower at R127,206/kg ($512/oz).
The adjusted gross loss, normalised for
accelerated settlement of non-hedge derivatives,
amounted to R35m ($5m), against a profit of R11m
($1m) in the previous quarter. Including the impact
of the early settlement of non-hedge derivatives, a
loss of R236m ($30m) was incurred.
volume mined up 31%, while yield declined 12% as
a result of increased mining in lower grade panels
due to flexibility constraints. Gold production was
15% higher at 881kg (28,000oz) and total cash
costs were 10% lower at R127,206/kg ($512/oz).
The adjusted gross loss, normalised for
accelerated settlement of non-hedge derivatives,
amounted to R35m ($5m), against a profit of R11m
($1m) in the previous quarter. Including the impact
of the early settlement of non-hedge derivatives, a
loss of R236m ($30m) was incurred.
The LTIFR deteriorated to 15.85 (10.97).
At Tau Lekoa, volume improved 18% due to
improved quality blasts and reduced safety related
stoppages. However, yield was 17% lower, due to
mining mix with reduced high grade pillar mining
now being completed. As a result, gold production
was down 2% at 1,073kg (35,000oz), and
consequently total cash costs increased 7% to
R138,069/kg ($554/oz). The adjusted gross profit,
normalised for the accelerated settlement of non-
hedge derivatives, amounted to R26m ($3m)
against R28m ($3m) in the prior quarter. Including
the impact of the early settlement of non-hedge
derivatives, a loss of R264m ($33m) was incurred.
improved quality blasts and reduced safety related
stoppages. However, yield was 17% lower, due to
mining mix with reduced high grade pillar mining
now being completed. As a result, gold production
was down 2% at 1,073kg (35,000oz), and
consequently total cash costs increased 7% to
R138,069/kg ($554/oz). The adjusted gross profit,
normalised for the accelerated settlement of non-
hedge derivatives, amounted to R26m ($3m)
against R28m ($3m) in the prior quarter. Including
the impact of the early settlement of non-hedge
derivatives, a loss of R264m ($33m) was incurred.
The LTIFR improved marginally to 19.89 (20.45).
Gold production at Mponeng was 22% higher at
4,974kg (160,000oz), primarily as a result of
improved face length availability, higher face
advance, treatment of surface stockpile and
increased vamping activities. Subsequently, total
cash costs decreased by 7% to R56,689/kg
($227/oz). The adjusted gross profit normalised for
the accelerated settlement of non-hedge
derivatives amounted to R507m ($65m), 25%
higher than the prior quarter. Including the impact
of the early settlement of non-hedge derivatives, a
loss of R608m ($75m) was incurred.
4,974kg (160,000oz), primarily as a result of
improved face length availability, higher face
advance, treatment of surface stockpile and
increased vamping activities. Subsequently, total
cash costs decreased by 7% to R56,689/kg
($227/oz). The adjusted gross profit normalised for
the accelerated settlement of non-hedge
derivatives amounted to R507m ($65m), 25%
higher than the prior quarter. Including the impact
of the early settlement of non-hedge derivatives, a
loss of R608m ($75m) was incurred.
The LTIFR improved by 3% to 10.23 (10.57).
At Savuka, mining volumes increased by 17%, due
to improved mining flexibility from increased
development and stabilised crew movements,
resulting in an increase in face length and face
advance during the quarter. This resulted in gold
production increasing 26% to 563kg (18,000oz).
to improved mining flexibility from increased
development and stabilised crew movements,
resulting in an increase in face length and face
advance during the quarter. This resulted in gold
production increasing 26% to 563kg (18,000oz).
Despite the increased production, total cash costs
were 24% higher at R109,769/kg ($440/oz),
primarily due to additional costs associated with
higher volumes. The adjusted gross profit,
normalised for the accelerated settlement of non-
hedge derivatives, amounted to R16m ($2m),
against R27m ($3m) in the prior quarter. Including
the impact of the early settlement of non-hedge
derivatives, a loss of R95m ($12m) was incurred.
were 24% higher at R109,769/kg ($440/oz),
primarily due to additional costs associated with
higher volumes. The adjusted gross profit,
normalised for the accelerated settlement of non-
hedge derivatives, amounted to R16m ($2m),
against R27m ($3m) in the prior quarter. Including
the impact of the early settlement of non-hedge
derivatives, a loss of R95m ($12m) was incurred.
The LTIFR deteriorated to 22.40 (13.32).
TauTona’s volume improved by 16%, due to
improved face advance, while yield was 6% higher
resulting from increased reef development.
Consequently, gold production increased by 22%
to 2,811kg (91,000oz) and total cash costs reduced
by 9% to R84,434/kg ($339/oz). The adjusted
gross profit normalised for the accelerated
settlement of non-hedge derivatives amounted to
R158m ($20m), 17% higher than the prior quarter.
Including the impact of the early settlement of non-
hedge derivatives, a loss of R467m ($58m) was
incurred.
improved face advance, while yield was 6% higher
resulting from increased reef development.
Consequently, gold production increased by 22%
to 2,811kg (91,000oz) and total cash costs reduced
by 9% to R84,434/kg ($339/oz). The adjusted
gross profit normalised for the accelerated
settlement of non-hedge derivatives amounted to
R158m ($20m), 17% higher than the prior quarter.
Including the impact of the early settlement of non-
hedge derivatives, a loss of R467m ($58m) was
incurred.
The LTIFR deteriorated to 13.66 (12.50).
ARGENTINA
At
Cerro Vanguardia (92.5% attributable) plant
constraints arising from sedimentation problems at
the agitators in the leach tank, combined with plant
stoppages for maintenance, resulted in volume
being 7% lower while yield improved 6% following
a higher feed grade. Accordingly, gold production
decreased 4% to 27,000oz and total cash costs
rose 57% to $870/oz as a result of lower gold
produced, reduced silver by-product contribution,
higher inflationary pressure and maintenance
costs. An adjusted gross loss, normalised for the
accelerated settlement of non-hedge derivatives,
amounted to $6m, against a profit of $7m in the
prior quarter. Including the impact of the early
settlement of non-hedge derivatives, a loss of
$24m was incurred.
constraints arising from sedimentation problems at
the agitators in the leach tank, combined with plant
stoppages for maintenance, resulted in volume
being 7% lower while yield improved 6% following
a higher feed grade. Accordingly, gold production
decreased 4% to 27,000oz and total cash costs
rose 57% to $870/oz as a result of lower gold
produced, reduced silver by-product contribution,
higher inflationary pressure and maintenance
costs. An adjusted gross loss, normalised for the
accelerated settlement of non-hedge derivatives,
amounted to $6m, against a profit of $7m in the
prior quarter. Including the impact of the early
settlement of non-hedge derivatives, a loss of
$24m was incurred.
The LTIFR was 5.36 (6.12).
AUSTRALIA
Gold production at Sunrise Dam was 4% lower at
114,000oz, following prior mining of the high
grade GQ lode. Total cash costs increased by
17% to A$586/oz ($553/oz), owing to the lower
gold production, higher fuel prices and stockpile
movements. The adjusted gross profit, normalised
for the accelerated settlement of non-hedge
derivatives, amounted to A$11m ($10m) against
A$25m ($23m) in the prior quarter. Including the
impact of the early settlement of non-hedge
derivatives, a loss of A$87m ($83m) was incurred.
114,000oz, following prior mining of the high
grade GQ lode. Total cash costs increased by
17% to A$586/oz ($553/oz), owing to the lower
gold production, higher fuel prices and stockpile
movements. The adjusted gross profit, normalised
for the accelerated settlement of non-hedge
derivatives, amounted to A$11m ($10m) against
A$25m ($23m) in the prior quarter. Including the
impact of the early settlement of non-hedge
derivatives, a loss of A$87m ($83m) was incurred.
During the quarter, production from underground
mining continued from the Cosmo and Sunrise
Shear lodes. A total of 206m of underground
capital development and 2,041m of operational
development were completed during the quarter.
mining continued from the Cosmo and Sunrise
Shear lodes. A total of 206m of underground
capital development and 2,041m of operational
development were completed during the quarter.
The LTIFR was 0.00 (6.88).
BRAZIL
At AngloGold Ashanti Brasil Mineração,
production increased 14% to 82,000oz, as a result
of higher feed grade from the Serrotinho and
Fonte Grande Sul stopes at Cuiabá, together with
improved fleet performance. Total cash costs rose
2% to $323/oz primarily due to local currency
appreciation and higher inflation, partially offset by
the improved gold production and higher by-
product contribution from a stronger sulphuric acid
price. The adjusted gross profit normalised for the
accelerated settlement of non-hedge derivatives
amounted to $24m, against $25m in the prior
quarter. Including the impact of the early
settlement of non-hedge derivatives, a loss of
$58m was incurred.
of higher feed grade from the Serrotinho and
Fonte Grande Sul stopes at Cuiabá, together with
improved fleet performance. Total cash costs rose
2% to $323/oz primarily due to local currency
appreciation and higher inflation, partially offset by
the improved gold production and higher by-
product contribution from a stronger sulphuric acid
price. The adjusted gross profit normalised for the
accelerated settlement of non-hedge derivatives
amounted to $24m, against $25m in the prior
quarter. Including the impact of the early
settlement of non-hedge derivatives, a loss of
$58m was incurred.
The LTIFR was 2.05 (4.39).
At
Serra Grande (50% attributable) gold
production rose 5% to 22,000oz, primarily due to
the higher volume and an improved yield,
following the mill shutdown in the prior quarter.
Total cash cost increased 6% to $307/oz,
principally due to the effect of a stronger local
currency, inflationary pressure (labour and
power), partially offset by the higher gold
production. The adjusted gross profit normalised
for the accelerated settlement of non-hedge
the higher volume and an improved yield,
following the mill shutdown in the prior quarter.
Total cash cost increased 6% to $307/oz,
principally due to the effect of a stronger local
currency, inflationary pressure (labour and
power), partially offset by the higher gold
production. The adjusted gross profit normalised
for the accelerated settlement of non-hedge
derivatives amounted to $6m, against $7m in the
prior quarter. Including the impact of the early
settlement of non-hedge derivatives, a loss of
$11m was incurred.
prior quarter. Including the impact of the early
settlement of non-hedge derivatives, a loss of
$11m was incurred.
The LTIFR improved to 0.00 (2.00).
GHANA
At Obuasi, gold production decreased 9% to
79,000oz due to a decrease in recovered grade
and tonnage throughput, as a result of lower
grades delivered and unscheduled plant
maintenance. Total cash costs increased by 18%
to $612/oz, due to the lower production and
inflationary pressures arising from a higher power
tariff, increased fuel prices and wage increases.
79,000oz due to a decrease in recovered grade
and tonnage throughput, as a result of lower
grades delivered and unscheduled plant
maintenance. Total cash costs increased by 18%
to $612/oz, due to the lower production and
inflationary pressures arising from a higher power
tariff, increased fuel prices and wage increases.
The adjusted gross loss normalised for the
accelerated settlement of non-hedge derivatives
amounted to $8m, against a profit of $2m in the
prior quarter. Including the impact of the early
settlement of non-hedge derivatives, a loss of
$72m was incurred.
accelerated settlement of non-hedge derivatives
amounted to $8m, against a profit of $2m in the
prior quarter. Including the impact of the early
settlement of non-hedge derivatives, a loss of
$72m was incurred.
The LTIFR was 0.60 (2.27).
At Iduapriem, gold production decreased 2% to
46,000oz as mining plans were changed to
accommodate the high rainfall experienced during
the quarter. Total cash costs increased by 9% to
$493/oz, due to the lower gold production,
increased contractor mining cost, higher power
tariffs and higher fuel costs.
46,000oz as mining plans were changed to
accommodate the high rainfall experienced during
the quarter. Total cash costs increased by 9% to
$493/oz, due to the lower gold production,
increased contractor mining cost, higher power
tariffs and higher fuel costs.
The adjusted gross profit, normalised for the
accelerated settlement of non-hedge derivatives
amounted to $7m, against $10m in the prior
quarter. Including the impact of the early
settlement of non-hedge derivatives, a loss of
$33m was incurred.
accelerated settlement of non-hedge derivatives
amounted to $7m, against $10m in the prior
quarter. Including the impact of the early
settlement of non-hedge derivatives, a loss of
$33m was incurred.
LTIFR was 1.32 (0.00).
REPUBLIC OF GUINEA
At Siguiri (85% attributable), the start of the rainy
season reduced tonnage throughput, with gold
production reducing 8% to 86,000oz. Despite the
lower production, total cash costs decreased to
season reduced tonnage throughput, with gold
production reducing 8% to 86,000oz. Despite the
lower production, total cash costs decreased to
$434/oz as a result of lower royalty payments,
partially offset by the inflationary impact of higher
fuel and reagent costs.
partially offset by the inflationary impact of higher
fuel and reagent costs.
The adjusted gross profit normalised for the
accelerated settlement of non-hedge derivatives
amounted to $17m, against $21m in the prior
quarter. Including the impact of the early
settlement of non-hedge derivatives, a loss of
$31m was incurred.
accelerated settlement of non-hedge derivatives
amounted to $17m, against $21m in the prior
quarter. Including the impact of the early
settlement of non-hedge derivatives, a loss of
$31m was incurred.
LTIFR was 0.57 (0.00).
MALI
Gold production at Morila (40% attributable) was
15% higher than the previous quarter at 46,000oz
due to increases in both recovered grade (4%)
and tonnage throughput (8%). Tonnage
throughput returned to higher levels, after the
previous quarter was adversely affected by plant
downtime, resulting from the replacement of the
SAG mill gearbox and extended mill relining.
Despite the higher production, total cash costs
increased 4% to $426/oz, mainly due to higher
fuel prices and the impact of a stronger currency.
The adjusted gross profit normalised for the
accelerated settlement of non-hedge derivatives
amounted to $12m, against $11m in the prior
quarter. Including the impact of the early
settlement of non-hedge derivatives, a loss of
$30m was incurred.
15% higher than the previous quarter at 46,000oz
due to increases in both recovered grade (4%)
and tonnage throughput (8%). Tonnage
throughput returned to higher levels, after the
previous quarter was adversely affected by plant
downtime, resulting from the replacement of the
SAG mill gearbox and extended mill relining.
Despite the higher production, total cash costs
increased 4% to $426/oz, mainly due to higher
fuel prices and the impact of a stronger currency.
The adjusted gross profit normalised for the
accelerated settlement of non-hedge derivatives
amounted to $12m, against $11m in the prior
quarter. Including the impact of the early
settlement of non-hedge derivatives, a loss of
$30m was incurred.
The LTIFR was 0.00 (3.32).
At Sadiola (38% attributable), production was
25% higher at 45,000oz, primarily due to an
increase in yield due to improved performance of
the gravity circuit, resulting in a higher overall
recovery. Total cash costs increased to $408/oz
as a result of higher fuel prices, a weaker US
dollar and higher royalty expense.
25% higher at 45,000oz, primarily due to an
increase in yield due to improved performance of
the gravity circuit, resulting in a higher overall
recovery. Total cash costs increased to $408/oz
as a result of higher fuel prices, a weaker US
dollar and higher royalty expense.
The adjusted gross profit normalised for the
accelerated settlement of non-hedge derivatives
amounted to $7m, against $11m in the prior
quarter. Including the impact of the early
settlement of non-hedge derivatives, a loss of
$43m was incurred.
accelerated settlement of non-hedge derivatives
amounted to $7m, against $11m in the prior
quarter. Including the impact of the early
settlement of non-hedge derivatives, a loss of
$43m was incurred.
The LTIFR was 0.00 (1.71).
Production at Yatela (40% attributable)
decreased by 12% to 15,000oz, due to stacking
of lower grade marginal ore in the prior quarter.
Total cash costs were 10% higher at $573/oz,
due to the lower production, together with higher
fuel prices and weaker US dollar.
decreased by 12% to 15,000oz, due to stacking
of lower grade marginal ore in the prior quarter.
Total cash costs were 10% higher at $573/oz,
due to the lower production, together with higher
fuel prices and weaker US dollar.
The adjusted gross profit, normalised for the
accelerated settlement of non-hedge derivatives,
amounted to $3m against $4m in the prior
quarter. Including the impact of the early
settlement of non-hedge derivatives, a loss of
$14m was incurred.
accelerated settlement of non-hedge derivatives,
amounted to $3m against $4m in the prior
quarter. Including the impact of the early
settlement of non-hedge derivatives, a loss of
$14m was incurred.
The LTIFR was 0.00 (0.00).
NAMIBIA
Gold production at Navachab rose 7% to
16,000oz, mainly attributable to an improvement
in the recovery factor, despite volume treated
being adversely affected by relining of the
discharge section of the plant mill and associated
unplanned maintenance. Total cash costs at
$599/oz, deteriorated by 22% due to inflationary
pressure on fuel and higher maintenance costs
on cyclone feed pumps and mill, as well as
replacement of the liners. The operation was
breakeven at an adjusted gross profit normalised
for the accelerated settlement of non-hedge
derivatives, against a profit of $3m in the prior
quarter. Including the impact of the early
settlement of non-hedge derivatives, a loss of
$8m was incurred.
16,000oz, mainly attributable to an improvement
in the recovery factor, despite volume treated
being adversely affected by relining of the
discharge section of the plant mill and associated
unplanned maintenance. Total cash costs at
$599/oz, deteriorated by 22% due to inflationary
pressure on fuel and higher maintenance costs
on cyclone feed pumps and mill, as well as
replacement of the liners. The operation was
breakeven at an adjusted gross profit normalised
for the accelerated settlement of non-hedge
derivatives, against a profit of $3m in the prior
quarter. Including the impact of the early
settlement of non-hedge derivatives, a loss of
$8m was incurred.
The LTIFR was 0.00 (0.00).
TANZANIA
At Geita gold production was 16% higher at
74,000oz, due to a 35% increase in yield, which
was partially offset by a 14% decrease in tonnage
throughput. Yield has improved to normal levels,
following improved blending of ore to improve
recovery. Tonnage throughput was adversely
affected during the quarter by a five day shutdown
to repair the lubrication pumping system on the
primary crushing circuit, together with major
relining of both the SAG and Ball mills.
74,000oz, due to a 35% increase in yield, which
was partially offset by a 14% decrease in tonnage
throughput. Yield has improved to normal levels,
following improved blending of ore to improve
recovery. Tonnage throughput was adversely
affected during the quarter by a five day shutdown
to repair the lubrication pumping system on the
primary crushing circuit, together with major
relining of both the SAG and Ball mills.
Total cash costs were 12% lower at $630/oz mainly
due to the positive impact of higher gold
production. The unit cost benefit of increased
production was partly negated by higher fuel prices
and the cost of crusher repairs and mill relining.
The adjusted gross loss normalised for the
accelerated settlement of non-hedge derivatives
amounted to $4m, against $13m in the prior
quarter. Including the impact of the early settlement
of non-hedge derivatives, a loss of $66m was
incurred.
due to the positive impact of higher gold
production. The unit cost benefit of increased
production was partly negated by higher fuel prices
and the cost of crusher repairs and mill relining.
The adjusted gross loss normalised for the
accelerated settlement of non-hedge derivatives
amounted to $4m, against $13m in the prior
quarter. Including the impact of the early settlement
of non-hedge derivatives, a loss of $66m was
incurred.
The LTIFR was 0.94 (0.00).
NORTH AMERICA
At Cripple Creek & Victor (100% ownership
effective 1 July 2008) gold production increased
2% to 59,000oz, while total cash costs increased
6% to $301/oz, primarily due to inflationary
pressures driven by rising fuel costs.
effective 1 July 2008) gold production increased
2% to 59,000oz, while total cash costs increased
6% to $301/oz, primarily due to inflationary
pressures driven by rising fuel costs.
The adjusted gross profit normalised for the
accelerated settlement of non-hedge derivatives
amounted to $19m, against $22m in the prior
quarter. Including the impact of the early settlement
of non-hedge derivatives, a loss of $37m was
incurred.
accelerated settlement of non-hedge derivatives
amounted to $19m, against $22m in the prior
quarter. Including the impact of the early settlement
of non-hedge derivatives, a loss of $37m was
incurred.
The LTIFR was 0.00 (9.33).
Notes:
•
All references to price received includes realised non-hedge derivatives.
•
In the case of joint venture and operations with minority holdings, all production and financial results are attributable to AngloGold
Ashanti.
Ashanti.
•
Rounding of figures may result in computational discrepancies.
Review of the gold market
The gold price again traded strongly during the
second quarter, albeit in a similarly volatile pattern
to that in the first quarter, which is partly a reflection
of continuing uncertainty in financial markets. The
direction of the gold price remains closely linked to
the movement of the US dollar, but more recently
has also shown a strong correlation to the oil price.
second quarter, albeit in a similarly volatile pattern
to that in the first quarter, which is partly a reflection
of continuing uncertainty in financial markets. The
direction of the gold price remains closely linked to
the movement of the US dollar, but more recently
has also shown a strong correlation to the oil price.
The first half of April 2008 saw strong dollar gold
prices, reaching some $946/oz towards the middle
of the month, the highest price recorded during the
quarter, as the US dollar edged towards an all-time
low of Euro/US$1.60. Since then, the price fell by
$100/oz to reach a low of $845/oz in the opening
days of May 2008, primarily on profit taking.
prices, reaching some $946/oz towards the middle
of the month, the highest price recorded during the
quarter, as the US dollar edged towards an all-time
low of Euro/US$1.60. Since then, the price fell by
$100/oz to reach a low of $845/oz in the opening
days of May 2008, primarily on profit taking.
From the middle of May, however, gold resumed an
upward trend as a consequence of a steadily rising
oil price and predictions by analysts of higher prices
to come. The gold price continued to be volatile for
the balance of the quarter reflecting uncertainty
surrounding the outlook for the global economy and
inflation, and amidst fears of further write-downs in
the banking sector.
upward trend as a consequence of a steadily rising
oil price and predictions by analysts of higher prices
to come. The gold price continued to be volatile for
the balance of the quarter reflecting uncertainty
surrounding the outlook for the global economy and
inflation, and amidst fears of further write-downs in
the banking sector.
At $898/oz, the average dollar gold spot price for
the quarter was slightly lower than the strong
average price attained during the first quarter of
$925/oz. The rand gold price reached highs of
R234,551/kg during the quarter, and the spot price
averaged R216,742/kg for the quarter, some 3%
lower than the previous quarter’s average of
R224,308/kg.
the quarter was slightly lower than the strong
average price attained during the first quarter of
$925/oz. The rand gold price reached highs of
R234,551/kg during the quarter, and the spot price
averaged R216,742/kg for the quarter, some 3%
lower than the previous quarter’s average of
R224,308/kg.
JEWELLERY DEMAND
All the major markets experienced some slowdown
in jewellery consumption over the quarter. In the
US, the mass-market segment was the worst
affected, with this group of consumers facing
increased pressure on spending due to inflationary
trends in that economy. In emerging markets, gold
price volatility was a more significant factor in
dampening demand. Seasonal factors also
impacted negatively on gold consumption and a
return to buying can be expected towards the end
of the third quarter of the year, given a favourable
price environment.
in jewellery consumption over the quarter. In the
US, the mass-market segment was the worst
affected, with this group of consumers facing
increased pressure on spending due to inflationary
trends in that economy. In emerging markets, gold
price volatility was a more significant factor in
dampening demand. Seasonal factors also
impacted negatively on gold consumption and a
return to buying can be expected towards the end
of the third quarter of the year, given a favourable
price environment.
In India, the world’s largest gold market, high
rupee gold prices dampened demand during the
second quarter, continuing from the trend set in
the first quarter of the year. There were, however,
some significant fluctuations in demand during the
rupee gold prices dampened demand during the
second quarter, continuing from the trend set in
the first quarter of the year. There were, however,
some significant fluctuations in demand during the
period, with good levels of consumption being
seen during the festival of Akshaya Thritiya, a
traditional gold-buying occasion. Although
demand during the festival was lower than in 2007
by some 11%, when record levels of gold sales
were registered, significant purchases still took
place. During May 2008 and June 2008, however,
when price volatility became a significant feature
of the market, demand again receded.
seen during the festival of Akshaya Thritiya, a
traditional gold-buying occasion. Although
demand during the festival was lower than in 2007
by some 11%, when record levels of gold sales
were registered, significant purchases still took
place. During May 2008 and June 2008, however,
when price volatility became a significant feature
of the market, demand again receded.
Price volatility has an important impact on gold
demand in India, while the continued weakening of
the rupee against the dollar has also increased the
absolute price level of gold to the consumer. With
the metal breaching the R12,000/100g level during
the quarter, and moving above R13,000/100g in
the early part of July 2008, the Indian consumer is
experiencing record high gold prices. As a result of
higher gold prices there is some evidence that
retail formats for jewellery in the Indian market are
starting to shift. Wedding jewellery is becoming
lighter and jewellery designs are emerging which
enable consumers to wear one piece of jewellery
in different ways and for different occasions.
Efforts are also underway to attract younger
consumers to the market, taking advantage of the
disposable income available in this target group.
demand in India, while the continued weakening of
the rupee against the dollar has also increased the
absolute price level of gold to the consumer. With
the metal breaching the R12,000/100g level during
the quarter, and moving above R13,000/100g in
the early part of July 2008, the Indian consumer is
experiencing record high gold prices. As a result of
higher gold prices there is some evidence that
retail formats for jewellery in the Indian market are
starting to shift. Wedding jewellery is becoming
lighter and jewellery designs are emerging which
enable consumers to wear one piece of jewellery
in different ways and for different occasions.
Efforts are also underway to attract younger
consumers to the market, taking advantage of the
disposable income available in this target group.
Looking forward to the second half of the year, the
wedding season which gets underway in
September/October and the Hindu festival of
‘Diwali’ is likely to act as a catalyst for a recovery
in gold demand. This will be somewhat dependent
on gold prices stabilising and short-term price
volatility reducing.
wedding season which gets underway in
September/October and the Hindu festival of
‘Diwali’ is likely to act as a catalyst for a recovery
in gold demand. This will be somewhat dependent
on gold prices stabilising and short-term price
volatility reducing.
In the Middle East, price volatility also impacted on
demand, as did inflationary pressure, which limited
the level of disposable income available for
discretionary purchases. The quarter started
slowly with relatively low levels of jewellery sales
during the first part of April 2008, but picked up
during the balance of the period as the wedding
and holiday season stimulated sales.
demand, as did inflationary pressure, which limited
the level of disposable income available for
discretionary purchases. The quarter started
slowly with relatively low levels of jewellery sales
during the first part of April 2008, but picked up
during the balance of the period as the wedding
and holiday season stimulated sales.
Continued political uncertainty in Turkey and the
weakening of the Turkish lira against the dollar
both impacted negatively on demand in this
market. In the Egyptian market, however, where
the local currency appreciated against the dollar,
demand remained relatively strong, building on
that market’s good performance in the first quarter
of the year.
weakening of the Turkish lira against the dollar
both impacted negatively on demand in this
market. In the Egyptian market, however, where
the local currency appreciated against the dollar,
demand remained relatively strong, building on
that market’s good performance in the first quarter
of the year.
In the US, mass-market jewellery outlets pulled
back significantly on sales of 14 carat gold, and
tended to substitute gold items with gold-clad or
lower-caratage jewellery. The high end of the
market, though relatively small in tonnage terms,
showed some strength. Overall gold jewellery sales
are however expected to show a decline when
figures for the quarter are released.
back significantly on sales of 14 carat gold, and
tended to substitute gold items with gold-clad or
lower-caratage jewellery. The high end of the
market, though relatively small in tonnage terms,
showed some strength. Overall gold jewellery sales
are however expected to show a decline when
figures for the quarter are released.
In China, the second quarter is traditionally a slower
time for jewellery sales and the market data
received to date appears to reflect this. It also
suggests a significant slowdown in consumer
demand following the earthquake on 12 May 2008.
Inflationary concerns, however, remain significant
and gold purchases in China have historically been
strong in times of high inflation. Looking forward to
the second half of the year, the Olympic Games are
expected to lift consumer sentiment in the country
and tourist purchases may also boost demand.
time for jewellery sales and the market data
received to date appears to reflect this. It also
suggests a significant slowdown in consumer
demand following the earthquake on 12 May 2008.
Inflationary concerns, however, remain significant
and gold purchases in China have historically been
strong in times of high inflation. Looking forward to
the second half of the year, the Olympic Games are
expected to lift consumer sentiment in the country
and tourist purchases may also boost demand.
CENTRAL BANK SALES
In the current year of the Central Bank Agreement
(which runs from October 2007 to September
2008), member signatories have sold only 251t of
the allotted 500t quota for the period. If the
signatories to the accord do not utilise their full
quota during the current year, it will be the third
consecutive year in which they have failed to do so.
(which runs from October 2007 to September
2008), member signatories have sold only 251t of
the allotted 500t quota for the period. If the
signatories to the accord do not utilise their full
quota during the current year, it will be the third
consecutive year in which they have failed to do so.
Countries such as Russia, Philippines and
Kazakhstan have bought 38.3, 7.88 and 6.2t of gold
respectively since September 2007.
Kazakhstan have bought 38.3, 7.88 and 6.2t of gold
respectively since September 2007.
INVESTMENT MARKET
The seven major Exchange Traded Funds (ETFs)
did not repeat the impressive growth that they
exhibited in the first quarter of 2008, although post
quarter there has been significant renewed interest
in investing into gold ETFs. From a peak of some
29Moz in the beginning of April 2008, these funds
sold off almost 2Moz, before stabilising around
27Moz for the remainder of the quarter.
did not repeat the impressive growth that they
exhibited in the first quarter of 2008, although post
quarter there has been significant renewed interest
in investing into gold ETFs. From a peak of some
29Moz in the beginning of April 2008, these funds
sold off almost 2Moz, before stabilising around
27Moz for the remainder of the quarter.
During the third quarter it is anticipated that the
Dubai-based ETF will come into operation, serving
both the Middle East market and Islamic
communities globally through the provision of a
Sharia-compliant exchange traded investment
product.
Dubai-based ETF will come into operation, serving
both the Middle East market and Islamic
communities globally through the provision of a
Sharia-compliant exchange traded investment
product.
In the Indian context, ETFs account for only a small
portion of investment demand; the majority of gold
purchased purely for investment purposes is in
either coin or bar format. However, new formats of
portion of investment demand; the majority of gold
purchased purely for investment purposes is in
either coin or bar format. However, new formats of
gold investment vehicles are being piloted in India
which, if successful, could impact positively on this
market sector. These take the form of either
consignment purchasing schemes or gold savings
schemes whereby individuals set aside a portion of
their monthly wages to purchase gold. These
schemes are operated by local banks specialising
in micro-finance.
which, if successful, could impact positively on this
market sector. These take the form of either
consignment purchasing schemes or gold savings
schemes whereby individuals set aside a portion of
their monthly wages to purchase gold. These
schemes are operated by local banks specialising
in micro-finance.
PRODUCER HEDGING
The main item of news in this respect, although not
entirely unexpected, was the statement from
Newcrest that they had completed the close out of
their last remaining hedges. This amounted to
buying of some 600,000oz in total.
entirely unexpected, was the statement from
Newcrest that they had completed the close out of
their last remaining hedges. This amounted to
buying of some 600,000oz in total.
During the quarter, AngloGold Ashanti reduced its
hedge commitments from 10.03Moz to 6.88Moz,
through deliveries into maturing contracts,
combined with select buy-backs, in respect of its
non-hedge derivative contracts.
hedge commitments from 10.03Moz to 6.88Moz,
through deliveries into maturing contracts,
combined with select buy-backs, in respect of its
non-hedge derivative contracts.
CURRENCIES
The rand opened the quarter at R8.09/$ and closed
at R7.83/$, 3% stronger.
at R7.83/$, 3% stronger.
The rand started the quarter in a strengthening
trend as it continued to recover from the previous
quarter, where confidence was strained following
the power shortages and political changes in South
Africa. However, the announcement of a 9% current
account deficit for the first quarter re-inforced the
vulnerability of the rand and curtailed any further
appreciation of the currency. Although there is
currently potential for fixed investment into South
Africa, specifically in the telecoms sector, the size of
the current account deficit will continue to hamper
real appreciation of the currency.
trend as it continued to recover from the previous
quarter, where confidence was strained following
the power shortages and political changes in South
Africa. However, the announcement of a 9% current
account deficit for the first quarter re-inforced the
vulnerability of the rand and curtailed any further
appreciation of the currency. Although there is
currently potential for fixed investment into South
Africa, specifically in the telecoms sector, the size of
the current account deficit will continue to hamper
real appreciation of the currency.
The Australian dollar opened the quarter at
A$/$0.9147 and closed at A$/$0.9619, strengthening
5%.
A$/$0.9147 and closed at A$/$0.9619, strengthening
5%.
The forces at play in the Australian dollar are much
the same as those faced globally, balancing the risks
of growth against those of inflation. More recent price
increases, in particular iron ore and coal, have added
support to the currency and are likely to keep
underpinning the strength of the Australian dollar.
the same as those faced globally, balancing the risks
of growth against those of inflation. More recent price
increases, in particular iron ore and coal, have added
support to the currency and are likely to keep
underpinning the strength of the Australian dollar.
Despite showing unusual levels of volatility during the
quarter, the Brazilian real continued its strong
appreciation trend, ending the quarter at BRL1.60/$,
an appreciation of 8% on its opening rate of
BRL1.74/$.
quarter, the Brazilian real continued its strong
appreciation trend, ending the quarter at BRL1.60/$,
an appreciation of 8% on its opening rate of
BRL1.74/$.
Hedge position
As at 30 June 2008, the net delta hedge position
was 6.54Moz or 204t (at 31 March 2008: 9.25Moz or
288t). Despite a higher gold price, the delta of the
hedge book was reduced by 2.71Moz to 6.54Moz,
and total commitments reduced from 10.03Moz to
6.88Moz, as a result of delivery into maturing
contracts and hedge buy-backs that were effected
during the quarter.
was 6.54Moz or 204t (at 31 March 2008: 9.25Moz or
288t). Despite a higher gold price, the delta of the
hedge book was reduced by 2.71Moz to 6.54Moz,
and total commitments reduced from 10.03Moz to
6.88Moz, as a result of delivery into maturing
contracts and hedge buy-backs that were effected
during the quarter.
The marked-to-market value of all hedge
transactions making up the hedge positions was a
negative $3.53bn (negative R27.67bn), decreasing
by $1.25bn (R11.1bn) during the quarter. This value
was based on a gold price of $922.90/oz, exchange
rates of R7.83/$ and A$/$0.95 and the prevailing
market interest rates and volatilities at that date.
transactions making up the hedge positions was a
negative $3.53bn (negative R27.67bn), decreasing
by $1.25bn (R11.1bn) during the quarter. This value
was based on a gold price of $922.90/oz, exchange
rates of R7.83/$ and A$/$0.95 and the prevailing
market interest rates and volatilities at that date.
The table below reflects the hedge position as at
30 June 2008 and includes the effect of all hedge
close outs undertaken during the second quarter.
The second half of the year will see the continued
reduction of the hedge book through the delivery
into maturing short hedge positions.
30 June 2008 and includes the effect of all hedge
close outs undertaken during the second quarter.
The second half of the year will see the continued
reduction of the hedge book through the delivery
into maturing short hedge positions.
Before taking the effects of the recent hedge
close out into account, the company’s received
price for the second quarter would have been
$734/oz, or 18% lower than the average spot
price of $898/oz. Looking at the third and fourth
quarter, the discount to spot price is likely to be
between 17% and 19%, assuming that gold
trades between $900/oz and $950/oz. For 2009,
the discount to spot is expected to be around
6%, based on a $900/oz price assumption.
As at 30 July 2008, the marked-to-market value
of the hedge book was a negative $3.42bn
(negative R25.18bn), based on a gold price of
$915.50/oz and exchange rates of R7.36/$ and
A$/$0.95 and the prevailing market interest
rates and volatilities at the time.
These marked-to-market valuations are in no
way predictive of the future value of the hedge
position, nor of future impact on the revenue of
the company. The valuation represents the
theoretical cost of buying all hedge contracts at
the time of valuation, at market prices and rates
available at that time.
Year
2008
2009
2010
2011
2012
2013-2016
Total
DOLLAR
GOLD
Forward
contracts
Amount
(kg)
7,823
12,917
12,580
12,931
11,944
12,364
70,559
US$/oz
$104
$218
$327
$397
$404
$432
$326
Put options sold
Amount (kg)
933
1,882
1,882
3,763
8,460
US$/oz
$660
$420
$430
$445
$460
Call
options
purchased
Amount
(kg)
4,284
4,284
US$/oz
$428
$428
Call
options
sold
Amount
(kg)
6,096
11,695
29,168
37,146
24,461
39,924
148,490
US$/oz
$348
$357
$498
$521
$622
$604
$535
RAND GOLD
Forward
contracts
Amount
(kg)
933
*1,866
*933
Rand
per
kg
R127,944
R157,213
R147,456
A DOLLAR GOLD
Forward
contracts
Amount
(kg)
1,555
1,835
3,111
6,501
A$
per
oz
A$591
A$569
A$685
A$630
Call
options
purchased
Amount
(kg)
1,555
1,244
3,111
5,910
A$
per
oz
A$682
A$694
A$712
A$701
Delta
(kg)
(10,591)
(23,390)
(40,491)
(47,467)
(33,520)
(48,066)
(203,525)
** Total net gold:
Delta
(oz)
(340,510)
(752,020)
(1,301,820)
(1,526,100)
(1,077,690)
(1,545,320)
(6,543,460)
*
Indicates a long position resulting from forward purchase contracts. The group enters into forward purchase contracts as part of its strategy
to actively manage and reduce the size of the hedge book.
to actively manage and reduce the size of the hedge book.
**
The Delta of the hedge position indicated above is the equivalent gold position that would have the same marked-to-market sensitivity for a
small change in the gold price. This is calculated using the Black-Scholes option formula with the ruling market prices, interest rates and
volatilities as at 30 June 2008.
small change in the gold price. This is calculated using the Black-Scholes option formula with the ruling market prices, interest rates and
volatilities as at 30 June 2008.
Rounding of figures may result in computational discrepancies.
Year
2008
2009
2010
2011
2012
2013-2016
Total
DOLLAR
SILVER
Put options purchased
Amount (kg)
21,772
21,772
$ per
oz
$7.66
$7.66
Put options sold
Amount (kg)
21,772
21,772
$ per
oz
$6.19
$6.19
Call
options
sold
Amount
(kg)
21,772
21,772
$ per
oz
$8.64
$8.64
The following table indicates the group's currency hedge position at 30 June 2008
Year
2008
2009
2010
2011
2012
2013-2016
Total
RAND DOLLAR (000)
Forward contracts
Amount ($)
*420,000
*420,000
US$/R
R7.85
R7.85
Put options purchased
Amount ($)
50,000
50,000
US$/R
R7.41
R7.41
Put options sold
Amount ($)
50,000
50,000
US$/R
R6.94
R6.94
Call options sold
Amount ($)
50,000
50,000
US$/R
R8.06
R8.06
A
DOLLAR
(000)
Forward
contracts
Amount
($)
5,000
5,000
A$/US$
$0.73
$0.73
Put options purchased
Amount ($)
30,000
30,000
A$/US$
$0.84
$0.84
Put options sold
Amount ($)
30,000
30,000
A$/US$
$0.88
$0.88
Call
options
sold
Amount
($)
30,000
30,000
A$/US$
$0.81
$0.81
BRAZILIAN REAL (000)
Forward contracts
Amount ($)
15,000
1,000
16,000
US$/BRL
BRL 1.87
BRL 1.84
BRL 1.87
Put options purchased
Amount ($)
24,000
500
24,500
US$/BRL
BRL 1.78
BRL 1.76
BRL 1.78
Call options sold
Amount ($)
78,000
1,000
79,000
US$/BRL
BRL 1.80
BRL 1.76
BRL 1.80
*
Indicates a long position established as part of the hedge close out transaction.
Derivative analysis by accounting designation as at 30 June 2008
Normal sale
exempted
Cash flow
hedge
accounted
Non-hedge
accounted
Total
US Dollars (millions)
Commodity option contracts
(719)
-
(1,409)
(2,128)
Foreign exchange option contracts
-
-
(4)
(4)
Forward sale commodity contracts
(1,086)
(273)
(93)
(1,452)
Forward foreign exchange contracts
-
-
4
4
Interest rate swaps
(27)
-
30
3
Total derivatives
(1,832)
(273)
(1,472)
(3,577)
Rounding of figures may result in computational discrepancies.
Exploration
Total exploration expenditure amounted to $52m
($27m brownfields, $25m greenfields) during the
second quarter of 2008, compared to $46m ($19m
brownfields, $27m greenfields) in the previous
quarter.
($27m brownfields, $25m greenfields) during the
second quarter of 2008, compared to $46m ($19m
brownfields, $27m greenfields) in the previous
quarter.
BROWNFIELDS EXPLORATION
In South Africa, surface drilling continued in the
Project Zaaiplaats area, with borehole MZA9 and
MMB5 advancing 288m and 581m, respectively.
Project Zaaiplaats area, with borehole MZA9 and
MMB5 advancing 288m and 581m, respectively.
Surface drilling in the Moab North area continued
with a long deflection of borehole MCY4 reaching
a depth of 2,386m and borehole MCY5 advancing
a further 890m.
with a long deflection of borehole MCY4 reaching
a depth of 2,386m and borehole MCY5 advancing
a further 890m.
At Tau Lekoa, borehole G55 was stopped at a
depth of 1,513m after intersecting a large fault
and passing into deep footwall quartzite and
further drilling is being considered.
depth of 1,513m after intersecting a large fault
and passing into deep footwall quartzite and
further drilling is being considered.
At Iduapriem in Ghana, preparation for Mineral
Resource conversion drilling at Ajopa continued,
but was hampered by rugged terrain and heavy
rains. Diamond (DDH) and reverse circulation
(RC) drilling is planned to start in mid-July. At
Obuasi, exploration continued with 4,005m of
DDH drilling below 50 level and 1,212m of DDH
drilling.
Resource conversion drilling at Ajopa continued,
but was hampered by rugged terrain and heavy
rains. Diamond (DDH) and reverse circulation
(RC) drilling is planned to start in mid-July. At
Obuasi, exploration continued with 4,005m of
DDH drilling below 50 level and 1,212m of DDH
drilling.
In Argentina at Cerro Vanguardia, the 2008
exploration programme continued with 7,594m of
DDH drilling and 16,689m of RC drilling being
completed. The interpretation of the hyper-
spectral survey will be completed in July 2008.
Exploration rights over 10 new claims were
confirmed by the provincial authorities and
geophysical surveys over these areas are being
planed for 2009.
exploration programme continued with 7,594m of
DDH drilling and 16,689m of RC drilling being
completed. The interpretation of the hyper-
spectral survey will be completed in July 2008.
Exploration rights over 10 new claims were
confirmed by the provincial authorities and
geophysical surveys over these areas are being
planed for 2009.
In Australia, at Boddington five rigs were
employed on the Mineral Resource conversion
and near mine exploration DDH drilling
programmes. During the quarter, approximately
30,049m were drilled from 43 holes.
employed on the Mineral Resource conversion
and near mine exploration DDH drilling
programmes. During the quarter, approximately
30,049m were drilled from 43 holes.
At Sunrise Dam, exploration continued to focus on
the deep-seated mineralisation towards the Carey
Shear Zone (1km vertical) and the extensions of
known mineralisation in the Astro, GQ and Dolly
lodes. During the quarter, 12,249m of diamond
core was drilled from 81 holes. Economic gold
intercepts were returned from the deep targets
the deep-seated mineralisation towards the Carey
Shear Zone (1km vertical) and the extensions of
known mineralisation in the Astro, GQ and Dolly
lodes. During the quarter, 12,249m of diamond
core was drilled from 81 holes. Economic gold
intercepts were returned from the deep targets
below the mine and further delineation of these
deep mineralised zones remains the priority for
2008/2009.
deep mineralised zones remains the priority for
2008/2009.
In Brazil, at the Córrego do Sítio Sulphide Project,
drilling continued with 11,448m being drilled from
surface, 2,632m drilled from underground and
1,042m of underground development. At the
Lamego project, 8,660m of surface drilling,
4,381m underground drilling and 1,067m of
underground development were completed.
drilling continued with 11,448m being drilled from
surface, 2,632m drilled from underground and
1,042m of underground development. At the
Lamego project, 8,660m of surface drilling,
4,381m underground drilling and 1,067m of
underground development were completed.
At Siguiri in Guinea, exploration activities
continued to focus on conversion drilling at
Sintroko South (situated 8km south of the mine).
Depth extensions to the high grade oxide
mineralisation in the Sintroko pit were tested by
DDH drilling, with encouraging results.
continued to focus on conversion drilling at
Sintroko South (situated 8km south of the mine).
Depth extensions to the high grade oxide
mineralisation in the Sintroko pit were tested by
DDH drilling, with encouraging results.
Results from reconnaissance air core drilling of
the Setiguia anomaly were negative. Geochemical
soil sampling covering the northwest extensions of
Kintinian produced positive results and will require
follow up aircore (AC) drilling. Reconnaissance
AC drilling was completed on the Manguity
geochemical anomaly, in the south-eastern corner
of Block 2. Results from infill and extension drilling
at Saraya in Block 2 is being awaited.
the Setiguia anomaly were negative. Geochemical
soil sampling covering the northwest extensions of
Kintinian produced positive results and will require
follow up aircore (AC) drilling. Reconnaissance
AC drilling was completed on the Manguity
geochemical anomaly, in the south-eastern corner
of Block 2. Results from infill and extension drilling
at Saraya in Block 2 is being awaited.
The individual resource models in the current
mining area have been remodelled to create a
larger, combined single model. This model
indicates upside on the known mineralisation in
the current mining area and a study is being
conducted to optimise the current mining area
based on this new model.
mining area have been remodelled to create a
larger, combined single model. This model
indicates upside on the known mineralisation in
the current mining area and a study is being
conducted to optimise the current mining area
based on this new model.
Conversion drilling will be completed at Sintroko
South early in the third quarter, and efforts will
then refocus on drill testing the combined pits
model, together with conversion drilling along the
perimeters of Kintinian village.
South early in the third quarter, and efforts will
then refocus on drill testing the combined pits
model, together with conversion drilling along the
perimeters of Kintinian village.
At Geita in Tanzania, exploration activities
concentrated in three areas, namely, Area
concentrated in three areas, namely, Area
3
(1,870m RC and 550m DDH); Kalondwa Hill
(800m RC and 426m DDH) and Star and Comet,
where drilling commenced on the southern
extension and sterilisation of the proposed waste
dump site. AC drilling on the Nyakabale-Prospect
30 area was completed.
(800m RC and 426m DDH) and Star and Comet,
where drilling commenced on the southern
extension and sterilisation of the proposed waste
dump site. AC drilling on the Nyakabale-Prospect
30 area was completed.
At Morila in Mali, pitting and trenching was
completed, and although no anomalous
completed, and although no anomalous
mineralisation was intersected, important
structural and lithological data was collected and
is being interpreted.
structural and lithological data was collected and
is being interpreted.
At Sadiola, resource definition drilling was carried
out at Sekokoto Main where an infill RC drill
programme was started with 1,552m drilled. No
major mineralised intersections were obtained
from the drilling of Lakanfla East, which was
completed in February 2008.
out at Sekokoto Main where an infill RC drill
programme was started with 1,552m drilled. No
major mineralised intersections were obtained
from the drilling of Lakanfla East, which was
completed in February 2008.
The Phase 9 diamond core drill programme for
deep sulphide ore in the northern part of the
Sadiola Main Pit was completed early in the
quarter. A total of 11 diamond drill holes
amounting to 4,420m were drilled along four fence
lines, approximately 300m apart.
deep sulphide ore in the northern part of the
Sadiola Main Pit was completed early in the
quarter. A total of 11 diamond drill holes
amounting to 4,420m were drilled along four fence
lines, approximately 300m apart.
Air Core drilling of the following anomalies
continued during the quarter: S3 (3,879m);
S5 (1,480m); S6a (3,272m), S6b (2,997m), S7
and S9 (2,630m).
continued during the quarter: S3 (3,879m);
S5 (1,480m); S6a (3,272m), S6b (2,997m), S7
and S9 (2,630m).
A diamond drill programme was completed
around the FE4 pit, with the objective to collect
geological and structural information to be
correlated with the pit mapping and update the
geological model for FE4, and test for sulphide
mineralisation. A total of 7 holes were drilled along
three fence lines amounting to 2,125m.
around the FE4 pit, with the objective to collect
geological and structural information to be
correlated with the pit mapping and update the
geological model for FE4, and test for sulphide
mineralisation. A total of 7 holes were drilled along
three fence lines amounting to 2,125m.
At Yatela, a RC drill programme at Donguera was
completed and a total of 77 RC holes (4,632m)
were drilled. A RC drill program was laid out at
Dinguilou to cover two areas that have potential
for oxide mineralisation, and a total 3,660m were
drilled in these two areas.
completed and a total of 77 RC holes (4,632m)
were drilled. A RC drill program was laid out at
Dinguilou to cover two areas that have potential
for oxide mineralisation, and a total 3,660m were
drilled in these two areas.
At Alamoutala, an infill RC drill programme is in
progress to the east and south of the current pit,
with the intention to close off the mineralisation.
progress to the east and south of the current pit,
with the intention to close off the mineralisation.
The core logging and sampling for the 2007 Deep
Sulphide drill programme was completed and final
results are being awaited.
Sulphide drill programme was completed and final
results are being awaited.
At Navachab in Namibia, RC drilling at Gecko
continued with an additional 5,000m being drilled,
and the drilling programme is expected to be
completed by mid quarter.
continued with an additional 5,000m being drilled,
and the drilling programme is expected to be
completed by mid quarter.
At Steenbok-Starling, 2,840m of follow up RC was
drilled. Results from the extension of the soil grid
towards Bulbul have been disappointing, and no
follow-up work is being planned. An extension of
the soil grid towards Ostrich and Giraffe is
currently underway.
drilled. Results from the extension of the soil grid
towards Bulbul have been disappointing, and no
follow-up work is being planned. An extension of
the soil grid towards Ostrich and Giraffe is
currently underway.
At Anomaly 16, 2,920m of exploration, infill and
advanced grade control holes were completed.
advanced grade control holes were completed.
Results from the 195 sample BLEG stream
sediment survey over the Okondura EPL3276
were disappointing and the EPL was therefore
significantly reduced. Initial remote sensing work
commenced on the two EPL’s to the northeast of
Okahandja.
sediment survey over the Okondura EPL3276
were disappointing and the EPL was therefore
significantly reduced. Initial remote sensing work
commenced on the two EPL’s to the northeast of
Okahandja.
A total of 1,666m of DDH drilling was undertaken
in the area to the immediate north of the main pit,
where drilling the northerly plunge extension of
the MDM/US sheeted veins is in progress. RC
drilling of 5,276m was done to the immediate
north of the North Pit2, where a northerly vein
plunge extension was confirmed and encouraging
intersections were achieved.
in the area to the immediate north of the main pit,
where drilling the northerly plunge extension of
the MDM/US sheeted veins is in progress. RC
drilling of 5,276m was done to the immediate
north of the North Pit2, where a northerly vein
plunge extension was confirmed and encouraging
intersections were achieved.
At Cripple Creek & Victor in the United States,
follow-up work with encouraging intercepts
continues in the North Cresson area, while in-fill
drilling has started in the Wild Horse and Cresson
areas. Drilling for the High Grade Study was
completed in Cresson and South Cresson and
further work, including a test-mining case, is
planned.
follow-up work with encouraging intercepts
continues in the North Cresson area, while in-fill
drilling has started in the Wild Horse and Cresson
areas. Drilling for the High Grade Study was
completed in Cresson and South Cresson and
further work, including a test-mining case, is
planned.
GREENFIELDS EXPLORATION
Greenfields exploration activities continued in six
countries, namely Australia, Colombia, the DRC,
China, the Philippines, and Russia. A total of
80,676m of diamond drilling (DDH), reverse
circulation (RC), and aircore (AC) drilling was
completed during the second quarter, at existing
priority targets while also delineating new targets
in Australia, the DRC, and Colombia.
countries, namely Australia, Colombia, the DRC,
China, the Philippines, and Russia. A total of
80,676m of diamond drilling (DDH), reverse
circulation (RC), and aircore (AC) drilling was
completed during the second quarter, at existing
priority targets while also delineating new targets
in Australia, the DRC, and Colombia.
In Australia, exploration drilling of the Tropicana
Prospect (AngloGold Ashanti 70%, Independence
Gold 30%) continued during the quarter, and
focused on infill drilling of the resource to increase
confidence in the estimate, to a level required for
reserve reporting and feasibility level assessment.
It is anticipated that the resource drilling
programme will be largely completed by mid-year.
Prefeasibility studies are continuing with
metallurgical test work programmes, while
engineering and mining studies have been
substantially completed. Key work programmes
to be completed, prior to making a
recommendation on the project, include process
water supply, exploration, optimal scale of
operation and economic modelling.
Prospect (AngloGold Ashanti 70%, Independence
Gold 30%) continued during the quarter, and
focused on infill drilling of the resource to increase
confidence in the estimate, to a level required for
reserve reporting and feasibility level assessment.
It is anticipated that the resource drilling
programme will be largely completed by mid-year.
Prefeasibility studies are continuing with
metallurgical test work programmes, while
engineering and mining studies have been
substantially completed. Key work programmes
to be completed, prior to making a
recommendation on the project, include process
water supply, exploration, optimal scale of
operation and economic modelling.
Regional AC exploration drilling returned
encouraging results from the Screaming Lizard
prospect, 10km to the east of the Tropicana
Prospect. Field mapping at the Black Dragon and
Voodoo Child Prospects located approximately
30km northeast of the Tropicana identified
outcropping gold mineralisation. Diamond drilling
at the Beachcomber prospect intersected visible
gold mineralisation, and the regional exploration
effort will be accelerated in the second half of the
year, as drill rigs and personnel become available
from the resource drilling at the Tropicana
prospect.
encouraging results from the Screaming Lizard
prospect, 10km to the east of the Tropicana
Prospect. Field mapping at the Black Dragon and
Voodoo Child Prospects located approximately
30km northeast of the Tropicana identified
outcropping gold mineralisation. Diamond drilling
at the Beachcomber prospect intersected visible
gold mineralisation, and the regional exploration
effort will be accelerated in the second half of the
year, as drill rigs and personnel become available
from the resource drilling at the Tropicana
prospect.
The Viking project (AngloGold Ashanti 100%) is
located along the southeast Yilgarn margin in an
equivalent geological setting to the Tropicana
project. A number of tenements in the Viking
project area were granted during the quarter and
exploration will commence in the third quarter.
located along the southeast Yilgarn margin in an
equivalent geological setting to the Tropicana
project. A number of tenements in the Viking
project area were granted during the quarter and
exploration will commence in the third quarter.
In Colombia, regional exploration focused on
41 targets, with three new targets brought to drill
ready stage. Anglogold Ashanti and its partners
are actively exploring 294 targets, generated by
systematic exploration in an area of 4.2m
hectares, for precious and base metal deposits. At
La Colosa it is anticipated that the necessary
environmental permits will be issued during the
fourth quarter of 2008, after which pre-feasibility
stage work, including drilling, will continue.
41 targets, with three new targets brought to drill
ready stage. Anglogold Ashanti and its partners
are actively exploring 294 targets, generated by
systematic exploration in an area of 4.2m
hectares, for precious and base metal deposits. At
La Colosa it is anticipated that the necessary
environmental permits will be issued during the
fourth quarter of 2008, after which pre-feasibility
stage work, including drilling, will continue.
Anglogold Ashanti and JV partners drilled on four
new projects and continued drilling at Gramalote
during the quarter. Significant results were
released from the Quebradona project (JV with
B2Gold), as per the table below.
new projects and continued drilling at Gramalote
during the quarter. Significant results were
released from the Quebradona project (JV with
B2Gold), as per the table below.
Location at
La Aurora
La Aurora
Hole
no.
Metres
drilled
(m)
Gold
(ppm)
Silver
(ppm)
Copper
(%)
La Mama
1
161.87
0.97
2.5
.154
La Mama
2
52.70
1.36
2.1
.144
La Mama
3
86.15
0.99
2.1
.134
La Mama
Incl.
32.90
1.67
2.6
.167
La Mama
4
86.30
2.08
2.6
.166
La Mama
5
65.80
0.94
2.5
.162
La Mama
6
228.90
0.80
2.0
.154
La Mama
Incl.
125.00
1.07
2.0
.153
Exploration activities in the DRC continued over
Concession 40, which covers most of the Kilo
greenstone belt. A second regional aeromagnetic
survey is being planned to collectively provide
coverage over approximately 70% of the area,
Concession 40, which covers most of the Kilo
greenstone belt. A second regional aeromagnetic
survey is being planned to collectively provide
coverage over approximately 70% of the area,
which remains virtually unexplored by modern
methods. This programme, combined with
regional geochemistry programmes, will provide
the platform from which to fast-track regional
exploration over the concession. Field work has
concentrated on detailed mapping, soil sampling
and trenching. At the Issuru prospect, located
approximately 4km north of the Mongbwalu
resource, a total of 2,972m was drilled, defining
potentially economic mineralisation over a strike
length of approximately 800m and a width of up to
450m. A further 14,000m of planned drilling will
focus on defining the underground resource. The
findings of the DRC Minerals Review Commission
have resulted in AngloGold Ashanti and the AGK
joint venture engaging the DRC government to
seek resolution and secure our rights to
Concession 40. It is envisaged that formal
discussions will commence early in the third
quarter 2008.
methods. This programme, combined with
regional geochemistry programmes, will provide
the platform from which to fast-track regional
exploration over the concession. Field work has
concentrated on detailed mapping, soil sampling
and trenching. At the Issuru prospect, located
approximately 4km north of the Mongbwalu
resource, a total of 2,972m was drilled, defining
potentially economic mineralisation over a strike
length of approximately 800m and a width of up to
450m. A further 14,000m of planned drilling will
focus on defining the underground resource. The
findings of the DRC Minerals Review Commission
have resulted in AngloGold Ashanti and the AGK
joint venture engaging the DRC government to
seek resolution and secure our rights to
Concession 40. It is envisaged that formal
discussions will commence early in the third
quarter 2008.
In the Philippines, all required documentation
has been submitted and final grant of the Mapawa
tenement application is being awaited from the
Department of Environment and Natural
Resources.
has been submitted and final grant of the Mapawa
tenement application is being awaited from the
Department of Environment and Natural
Resources.
In Russia, exploration to increase resources at
Veduga, so as to improve project economics, is
ongoing. Trenching and drilling at this advanced
project have demonstrated strike continuation of
mineralisation from the south-eastern ore zone for
a further 500m along strike. At the recently
acquired Penchenga property, regional soil
geochemistry has begun as part of a programme
to assess the potential of the licence area within
18 months. Growth through project generation
and securing grassroots licences is being planned
by the AngloGold Ashanti / Polymetal Alliance in
the North Yenisei and Baley districts.
Veduga, so as to improve project economics, is
ongoing. Trenching and drilling at this advanced
project have demonstrated strike continuation of
mineralisation from the south-eastern ore zone for
a further 500m along strike. At the recently
acquired Penchenga property, regional soil
geochemistry has begun as part of a programme
to assess the potential of the licence area within
18 months. Growth through project generation
and securing grassroots licences is being planned
by the AngloGold Ashanti / Polymetal Alliance in
the North Yenisei and Baley districts.
In China work on the Yili-Yunlong project
focussed on investigating geochemical anomalies
and coincident silica-clay alteration. Data from this
work is being compiled, with a final evaluation of
these tenements to be completed by the end of
the third quarter 2008. Final approval for the
Jinchanggou CJV was received from the Gansu
government in late June 2008. Results from soil
sampling on the eastern (Dashuigou) and western
(Hongchungou) tenements indicate significant
extensions to known mineralisation with
anomalous gold-in-soils over more than 16km
strike length, and drilling is likely to commence in
the fourth quarter of 2008.
focussed on investigating geochemical anomalies
and coincident silica-clay alteration. Data from this
work is being compiled, with a final evaluation of
these tenements to be completed by the end of
the third quarter 2008. Final approval for the
Jinchanggou CJV was received from the Gansu
government in late June 2008. Results from soil
sampling on the eastern (Dashuigou) and western
(Hongchungou) tenements indicate significant
extensions to known mineralisation with
anomalous gold-in-soils over more than 16km
strike length, and drilling is likely to commence in
the fourth quarter of 2008.
Group
operating results
Jun
Mar
Jun
Jun
Jun
Jun
Mar
Jun
Jun
Jun
2008
2008
2007
2008
2007
2008
2008
2007
2008
2007
OPERATING RESULTS
UNDERGROUND OPERATION
Milled
UNDERGROUND OPERATION
Milled
- 000 tonnes
/ - 000 tons
3,030
2,901
3,404
5,931
6,492
3,340
3,197
3,753
6,537
7,157
Yield
- g / t
/ - oz / t
7.08
6.95
6.70
7.02
6.95
0.206
0.203
0.195
0.205
0.203
Gold produced
- kg
/ - oz (000)
21,444
20,164
22,817
41,608
45,113
690
648
734
1,338
1,451
SURFACE AND DUMP RECLAMATION
Treated
Treated
- 000 tonnes
/ - 000 tons
2,875
2,826
3,192
5,701
6,466
3,169
3,115
3,518
6,284
7,128
Yield
- g / t
/ - oz / t
0.38
0.47
0.53
0.42
0.52
0.011
0.014
0.015
0.012
0.015
Gold produced
- kg
/ - oz (000)
1,100
1,318
1,680
2,418
3,374
35
42
54
78
108
OPEN-PIT OPERATION
Mined
Mined
- 000 tonnes
/ - 000 tons
44,336
46,554
42,880
90,890
82,939
48,872
51,317
47,267
100,189
91,425
Treated
- 000 tonnes
/ - 000 tons
6,164
6,331
6,139
12,496
12,401
6,795
6,979
6,767
13,774
13,670
Stripping ratio
- t (mined total - mined ore) / t mined ore
5.33
4.91
4.16
5.11
4.56
5.33
4.91
4.16
5.11
4.56
Yield
- g / t
/ - oz / t
2.25
2.09
2.29
2.17
2.27
0.066
0.061
0.067
0.063
0.066
Gold in ore
- kg
/ - oz (000)
12,411
12,266
14,123
24,677
26,694
399
394
454
793
858
Gold produced
- kg
/ - oz (000)
13,879
13,240
14,033
27,118
28,117
446
426
451
872
904
HEAP LEACH OPERATION
Mined
Mined
- 000 tonnes
/ - 000 tons
14,328
13,239
15,229
27,567
29,948
15,794
14,593
16,787
30,387
33,012
Placed
1
- 000 tonnes
/ - 000 tons
6,168
5,408
5,673
11,576
10,853
6,799
5,962
6,253
12,760
11,964
Stripping ratio
- t (mined total - mined ore) / t mined ore
1.45
1.43
1.94
1.44
2.00
1.45
1.43
1.94
1.44
2.00
Yield
2
- g / t
/ - oz / t
0.64
0.67
0.82
0.65
0.78
0.019
0.019
0.024
0.019
0.023
Gold placed
3
- kg
/ - oz (000)
3,929
3,613
4,656
7,542
8,421
126
116
150
242
271
Gold produced
- kg
/ - oz (000)
2,561
2,488
3,428
5,050
6,595
82
80
110
162
212
TOTAL
Gold produced
Gold produced
- kg
/ - oz (000)
38,984
37,210
41,958
76,194
83,198
1,253
1,196
1,349
2,450
2,675
Gold sold
- kg
/ - oz (000)
38,704
37,098
40,661
75,802
82,219
1,244
1,193
1,307
2,437
2,643
Price received
- R / kg
/ - $ / oz
- sold
(44,303)
183,945
137,579
67,390
138,807
(157)
755
605
289
604
Price received normalised for
accelerated settlement of non-
hedge derivatives
accelerated settlement of non-
hedge derivatives
- R / kg
/ - $ / oz
- sold
178,796
183,945
137,579
181,303
138,807
717
755
605
736
604
Total cash costs
- R / kg
/ - $ / oz
- produced
108,195
104,461
75,724
106,429
76,406
434
430
333
433
333
Total production costs
- R / kg
/ - $ / oz
- produced
138,115
136,200
99,734
137,238
99,872
554
561
439
558
435
PRODUCTIVITY PER EMPLOYEE
Target
Target
- g
/ - oz
340
303
397
322
386
10.93
9.75
12.76
10.34
12.41
Actual
- g
/ - oz
320
302
339
311
338
10.27
9.72
10.89
10.00
10.86
CAPITAL EXPENDITURE
- Rm
/ - $m
2,357
1,930
1,979
4,287
3,396
304
257
279
561
476
1
Tonnes (Tons) placed on to leach pad.
2
Gold placed / tonnes (tons) placed.
3
Gold placed into leach pad inventory.
Rounding of figures may result in computational discrepancies.
Quarter ended
Quarter ended
Unaudited
Rand / Metric
Unaudited
Dollar / Imperial
Six months
ended
Six months
ended
Group
income statement
Quarter
Quarter
Quarter
Six months
Six months
ended
ended
ended
ended
ended
June
March
June
June
June
2008
2008
2007
2008
2007
SA Rand million
Notes
Unaudited
Unaudited
Unaudited
Unaudited
Unaudited
Revenue
2
7,720
7,471
5,461
15,191
11,343
Gold income
7,508
7,245
5,222
14,753
10,886
Cost of sales
3
(5,406)
(4,992)
(4,132)
(10,398)
(8,356)
(Loss) gain on non-hedge derivatives and other commodity contracts
4
(1,316)
(5,612)
840
(6,928)
178
Gross profit (loss)
787
(3,359)
1,930
(2,573)
2,708
Corporate administration and other expenses
(252)
(215)
(216)
(467)
(424)
Market development costs
(24)
(24)
(26)
(48)
(49)
Exploration costs
(269)
(274)
(204)
(542)
(380)
Other operating (expenses) income
5
(48)
32
(43)
(16)
(91)
Operating special items
6
273
82
86
355
101
Operating profit (loss)
467
(3,758)
1,527
(3,291)
1,866
Interest received
102
82
62
184
135
Exchange (loss) gain
(28)
1
(14)
(27)
(12)
Fair value adjustment on option component of convertible bond
12
170
223
183
358
Finance costs and unwinding of obligations
(216)
(265)
(220)
(481)
(419)
Share of associates' profit (loss)
10
(1)
(51)
10
(54)
Profit (loss) before taxation
348
(3,771)
1,527
(3,423)
1,873
Taxation
7
(1,235)
52
(371)
(1,183)
(805)
(Loss) profit after taxation from continuing operations
(887)
(3,719)
1,155
(4,607)
1,067
Discontinued operations
Profit (loss) for the period from discontinued operations
Profit (loss) for the period from discontinued operations
8
191
(3)
(4)
188
(10)
(Loss) profit for the period
(697)
(3,722)
1,151
(4,419)
1,057
Allocated as follows:
Equity shareholders
Equity shareholders
(817)
(3,812)
1,083
(4,630)
933
Minority interest
121
90
68
211
124
(697)
(3,722)
1,151
(4,419)
1,057
Basic (loss) earnings per ordinary share (cents)
1
(Loss) profit from continuing operations
(357)
(1,350)
386
(1,706)
335
Profit (loss) from discontinued operations
68
(1)
(1)
67
(3)
(Loss) profit
(289)
(1,351)
385
(1,639)
332
Diluted (loss) earnings per ordinary share (cents)
2
(Loss) profit from continuing operations
3
(357)
(1,350)
385
(1,706)
334
Profit (loss) from discontinued operations
3
68
(1)
(1)
67
(3)
(Loss) profit
3
(289)
(1,351)
384
(1,639)
331
Dividends
4
- Rm
148
668
- cents per Ordinary share
53
240
- cents per E Ordinary share
26
120
1
Calculated on the basic weighted average number of ordinary shares.
4
Represents the dividend declared and paid during the period.
Rounding of figures may result in computational discrepancies.
2
The impact of the diluted earnings per share is anti-dilutive and therefore equal to the basic earnings per share.
3
Calculated on the diluted weighted average number of ordinary shares.
Group
income statement
Quarter
Quarter
Quarter
Six months
Six months
ended
ended
ended
ended
ended
June
March
June
June
June
2008
2008
2007
2008
2007
US Dollar million
Notes
Unaudited
Unaudited
Unaudited
Unaudited
Unaudited
Revenue
2
996
987
773
1,983
1,586
Gold income
968
958
739
1,926
1,522
Cost of sales
3
(698)
(661)
(585)
(1,359)
(1,169)
(Loss) gain on non-hedge derivatives and other commodity contracts
4
(235)
(373)
77
(608)
25
Gross profit (loss)
36
(77)
231
(41)
378
Corporate administration and other expenses
(33)
(28)
(31)
(61)
(59)
Market development costs
(3)
(3)
(4)
(6)
(7)
Exploration costs
(34)
(37)
(29)
(71)
(53)
Other operating (expenses) income
5
(6)
4
(6)
(2)
(13)
Operating special items
6
36
11
12
47
14
Operating (loss) profit
(4)
(130)
174
(134)
260
Interest received
13
11
9
24
19
Exchange loss
(4)
-
(2)
(4)
(2)
Fair value adjustment on option component of convertible bond
2
23
32
24
51
Finance costs and unwinding of obligations
(28)
(35)
(31)
(63)
(59)
Share of associates' profit (loss)
1
-
(7)
1
(8)
(Loss) profit before taxation
(20)
(131)
174
(151)
261
Taxation
7
(157)
1
(52)
(156)
(112)
(Loss) profit after taxation from continuing operations
(176)
(130)
121
(307)
149
Discontinued operations
Profit (loss) for the period from discontinued operations
Profit (loss) for the period from discontinued operations
8
24
-
(1)
24
(1)
(Loss) profit for the period
(152)
(131)
121
(283)
148
Allocated as follows:
Equity shareholders
Equity shareholders
(168)
(142)
111
(310)
131
Minority interest
16
11
10
27
17
(152)
(131)
121
(283)
148
Basic (loss) earnings per ordinary share (cents)
1
(Loss) profit from continuing operations
(68)
(50)
39
(118)
47
Profit from discontinued operations
9
-
-
8
-
(Loss) profit
(59)
(50)
39
(110)
47
Diluted (loss) earnings per ordinary share (cents)
2
(Loss) profit from continuing operations
3
(68)
(50)
39
(118)
46
Profit from discontinued operations
3
9
-
-
8
-
(Loss) profit
3
(59)
(50)
39
(110)
46
Dividends
4
- $m
18
90
- cents per Ordinary share
7
32
- cents per E Ordinary share
3
16
1
Calculated on the basic weighted average number of ordinary shares.
4
Represents the dividend declared and paid during the period.
Rounding of figures may result in computational discrepancies.
2
The impact of the diluted earnings per share is anti-dilutive and therefore equal to the basic earnings per share.
3
Calculated on the diluted weighted average number of ordinary shares.
Group
balance sheet
As at
As at
As at
As at
June
March
December
June
2008
2008
2007
2007
SA Rand million
Notes
Unaudited
Unaudited
Audited
Unaudited
ASSETS
Non-current assets
Tangible assets
Tangible assets
53,752
53,362
45,783
44,551
Intangible assets
3,649
3,657
2,996
3,041
Investments in associates
396
127
140
245
Other investments
633
738
795
956
Inventories
3,030
2,917
2,217
2,103
Trade and other receivables
864
761
566
452
Deferred taxation
655
631
543
417
Other non-current assets
281
281
278
313
63,259
62,475
53,318
52,078
Current assets
Inventories
Inventories
5,778
5,639
4,603
4,112
Trade and other receivables
1,905
1,949
1,587
1,535
Derivatives
4,810
3,966
3,516
3,383
Current portion of other non-current assets
2
2
2
5
Cash restricted for use
547
423
264
166
Cash and cash equivalents
3,914
4,167
3,381
2,792
16,955
16,146
13,353
11,993
Non-current assets held for sale
10
131
210
203
16,965
16,277
13,563
12,196
TOTAL ASSETS
80,224
78,752
66,881
64,274
EQUITY AND LIABILITIES
Share capital and premium
11
22,495
22,448
22,371
22,237
Retained earnings and other reserves
12
(6,573)
(5,787)
(6,167)
(34)
Shareholders' equity
15,921
16,661
16,204
22,203
Minority interests
13
637
576
429
475
Total equity
16,558
17,237
16,633
22,678
Non-current liabilities
Borrowings
Borrowings
7,387
5,728
10,441
9,293
Environmental rehabilitation and other provisions
4,049
3,917
3,361
2,929
Provision for pension and post-retirement benefits
1,247
1,244
1,208
1,201
Trade, other payables and deferred income
68
89
79
131
Derivatives
14
350
874
1,110
1,183
Deferred taxation
8,366
7,392
7,159
7,821
21,467
19,244
23,358
22,559
Current liabilities
Current portion of borrowings
Current portion of borrowings
10,103
10,157
2,309
2,056
Trade, other payables and deferred income
15
12,658
5,250
4,549
3,880
Derivatives
14
18,126
25,188
18,763
11,869
Taxation
1,313
1,506
1,269
1,232
42,200
42,101
26,890
19,037
Non-current liabilities held for sale
-
171
-
-
42,200
42,272
26,890
19,037
Total liabilities
63,666
61,515
50,248
41,596
TOTAL EQUITY AND LIABILITIES
80,224
78,752
66,881
64,274
Net asset value - cents per share
5,873
6,116
5,907
8,072
Rounding of figures may result in computational discrepancies.
Group
balance sheet
As at
As at
As at
As at
June
March
December
June
2008
2008
2007
2007
US Dollar million
Notes
Unaudited
Unaudited
Audited
Unaudited
ASSETS
Non-current assets
Tangible assets
Tangible assets
6,862
6,593
6,722
6,350
Intangible assets
466
452
440
433
Investments in associates
51
16
21
35
Other investments
81
91
117
136
Inventories
387
360
325
300
Trade and other receivables
110
94
83
64
Deferred taxation
84
78
80
59
Other non-current assets
36
35
41
45
8,076
7,719
7,829
7,423
Current assets
Inventories
Inventories
738
697
676
586
Trade and other receivables
243
241
233
219
Derivatives
614
490
516
482
Current portion of other non-current assets
-
-
-
1
Cash restricted for use
70
52
39
24
Cash and cash equivalents
500
515
496
398
2,164
1,996
1,960
1,709
Non-current assets held for sale
1
16
31
29
2,165
2,011
1,991
1,738
TOTAL ASSETS
10,241
9,731
9,820
9,161
EQUITY AND LIABILITIES
Share capital and premium
11
2,872
2,773
3,285
3,169
Retained earnings and other reserves
12
(839)
(715)
(906)
(5)
Shareholders' equity
2,033
2,058
2,379
3,165
Minority interests
13
81
71
63
68
Total equity
2,114
2,130
2,442
3,232
Non-current liabilities
Borrowings
Borrowings
943
708
1,533
1,325
Environmental rehabilitation and other provisions
517
484
494
417
Provision for pension and post-retirement benefits
159
154
177
171
Trade, other payables and deferred income
9
11
12
19
Derivatives
14
45
108
163
169
Deferred taxation
1,068
913
1,051
1,115
2,740
2,378
3,430
3,215
Current liabilities
Current portion of borrowings
Current portion of borrowings
1,290
1,255
339
293
Trade, other payables and deferred income
15
1,616
649
668
553
Derivatives
14
2,314
3,112
2,755
1,692
Taxation
168
186
186
176
5,387
5,202
3,948
2,713
Non-current liabilities held for sale
-
21
-
-
5,387
5,223
3,948
2,713
Total liabilities
8,127
7,600
7,378
5,929
TOTAL EQUITY AND LIABILITIES
10,241
9,731
9,820
9,161
Net asset value - cents per share
750
756
867
1,150
Rounding of figures may result in computational discrepancies.
Group
cash flow statement
Quarter
Quarter
Quarter
Six months
Six months
ended
ended
ended
ended
ended
June
March
June
June
June
2008
2008
2007
2008
2007
SA Rand million
Unaudited
Unaudited
Unaudited
Unaudited
Unaudited
Cash flows from operating activities
Receipts from customers
Receipts from customers
7,706
7,142
5,551
14,848
11,180
Payments to suppliers and employees
(6,413)
(5,267)
(3,869)
(11,681)
(7,406)
Cash generated from operations
1,293
1,875
1,682
3,167
3,774
Cash utilised by discontinued operations
(16)
(1)
(9)
(16)
(19)
Taxation paid
(544)
(442)
(545)
(986)
(877)
Net cash inflow from operating activities
733
1,432
1,128
2,165
2,878
Cash flows from investing activities
Capital expenditure
Capital expenditure
(2,357)
(1,930)
(1,764)
(4,287)
(3,181)
Acqusition of assets
-
-
(287)
-
(287)
Disposal of subsidiary net of cash
229
-
-
229
-
Proceeds from disposal of tangible assets
21
222
91
243
108
Proceeds from disposal of assets of discontinued operations
77
-
6
78
8
Other investments acquired
(78)
(266)
(16)
(344)
(56)
Associate loans and acquisitions
-
30
64
31
1
Proceeds from disposal of investments
105
207
26
312
48
(Increase) decrease in cash restricted for use
(119)
(48)
101
(168)
(88)
Interest received
100
88
49
188
110
Net loans advanced (repaid)
1
(2)
26
(2)
1
Cash utilised for hedge book settlement
(749)
-
-
(749)
-
Net cash outflow from investing activities
(2,770)
(1,700)
(1,702)
(4,470)
(3,336)
Cash flows from financing activities
Proceeds from issue of share capital
Proceeds from issue of share capital
21
65
36
86
140
Share issue expenses
-
-
(4)
-
(4)
Proceeds from borrowings
1,918
1,300
730
3,218
926
Repayment of borrowings
(78)
(233)
(182)
(311)
(326)
Finance costs
(30)
(258)
(33)
(288)
(245)
Advanced proceeds from rights offer
6
-
-
6
-
Dividends paid
(50)
(152)
(63)
(202)
(756)
Net cash inflow (outflow) from financing activities
1,788
722
485
2,510
(264)
Net (decrease) increase in cash and cash equivalents
(249)
454
(89)
205
(721)
Translation
(4)
332
(38)
328
46
Cash and cash equivalents at beginning of period
4,167
3,381
2,919
3,381
3,467
Net cash and cash equivalents at end of period
3,914
4,167
2,792
3,914
2,792
Cash generated from operations
Profit (loss) before taxation
Profit (loss) before taxation
348
(3,771)
1,527
(3,423)
1,873
Adjusted for:
Movement on non-hedge derivatives and other commodity contracts
Movement on non-hedge derivatives and other commodity contracts
771
5,409
(195)
6,179
788
Amortisation of tangible assets
1,184
1,082
1,009
2,266
1,957
Finance costs and unwinding of obligations
216
265
220
481
419
Environmental, rehabilitation and other expenditure
(28)
87
(14)
58
(28)
Operating special items
(273)
(82)
(86)
(355)
(101)
Amortisation of intangible assets
4
4
3
8
7
Deferred stripping
18
(213)
(131)
(194)
(231)
Fair value adjustment on option components of convertible bond
(12)
(170)
(223)
(183)
(358)
Interest receivable
(102)
(82)
(62)
(184)
(135)
Other non-cash movements
211
(20)
181
190
329
Movements in working capital
(1,043)
(633)
(547)
(1,676)
(747)
1,293
1,875
1,682
3,167
3,774
Movements in working capital
Increase in inventories
Increase in inventories
(591)
(1,762)
(494)
(2,353)
(820)
Decrease (increase) in trade and other receivables
5
(462)
79
(458)
(209)
(Decrease) increase in trade and other payables
(457)
1,591
(131)
1,134
282
(1,043)
(633)
(547)
(1,676)
(747)
Rounding of figures may result in computational discrepancies.
Group
cash flow statement
Quarter
Quarter
Quarter
Six months
Six months
ended
ended
ended
ended
ended
June
March
June
June
June
2008
2008
2007
2008
2007
US Dollar million
Unaudited
Unaudited
Unaudited
Unaudited
Unaudited
Cash flows from operating activities
Receipts from customers
Receipts from customers
990
953
783
1,943
1,563
Payments to suppliers and employees
(826)
(705)
(545)
(1,531)
(1,037)
Cash generated from operations
164
248
238
412
526
Cash utilised by discontinued operations
(2)
-
(1)
(2)
(3)
Taxation paid
(70)
(59)
(77)
(129)
(123)
Net cash inflow from operating activities
91
189
160
280
400
Cash flows from investing activities
Capital expenditure
Capital expenditure
(304)
(257)
(249)
(561)
(446)
Acqusition of assets
-
-
(40)
-
(40)
Disposal of subsidiary net of cash
29
-
-
29
-
Proceeds from disposal of tangible assets
3
30
13
32
15
Proceeds from disposal of assets of discontinued operations
10
-
1
10
1
Other investments acquired
(10)
(35)
(2)
(45)
(8)
Associate loans and acquisitions
-
4
9
4
-
Proceeds from disposal of investments
13
28
4
41
6
(Increase) decrease in cash restricted for use
(16)
(6)
14
(23)
(12)
Interest received
13
11
7
24
15
Net loans advanced
-
-
3
-
-
Cash utilised for hedge book settlement
(94)
-
-
(94)
-
Net cash outflow from investing activities
(357)
(226)
(241)
(583)
(467)
Cash flows from financing activities
Proceeds from issue of share capital
Proceeds from issue of share capital
3
9
5
11
19
Share issue expenses
-
-
(1)
-
(1)
Proceeds from borrowings
248
173
103
421
130
Repayment of borrowings
(10)
(31)
(26)
(41)
(46)
Finance costs
(4)
(34)
(5)
(38)
(34)
Advanced proceeds from rights offer
1
-
-
1
-
Dividends paid
(6)
(19)
(9)
(25)
(103)
Net cash inflow (outflow) from financing activities
232
97
67
330
(34)
Net (decrease) increase in cash and cash equivalents
(34)
60
(14)
27
(101)
Translation
18
(42)
11
(24)
4
Cash and cash equivalents at beginning of period
515
496
400
496
495
Net cash and cash equivalents at end of period
500
515
398
500
398
Cash generated from operations
(Loss) profit before taxation
(Loss) profit before taxation
(20)
(131)
174
(151)
261
Adjusted for:
Movement on non-hedge derivatives and other commodity contracts
Movement on non-hedge derivatives and other commodity contracts
165
345
15
510
111
Amortisation of tangible assets
153
144
143
296
274
Finance costs and unwinding of obligations
28
35
31
63
59
Environmental, rehabilitation and other expenditure
(4)
12
(2)
7
(5)
Operating special items
(36)
(11)
(12)
(47)
(14)
Amortisation of intangible assets
-
-
-
1
1
Deferred stripping
1
(26)
(19)
(25)
(33)
Fair value adjustment on option components of convertible bond
(2)
(23)
(32)
(24)
(51)
Interest receivable
(13)
(11)
(9)
(24)
(19)
Other non-cash movements
27
(3)
25
24
46
Movements in working capital
(136)
(82)
(76)
(219)
(106)
164
248
238
412
526
Movements in working capital
Increase in inventories
Increase in inventories
(111)
(59)
(102)
(170)
(115)
(Increase) decrease in trade and other receivables
(8)
(21)
3
(28)
(29)
(Decrease) increase in trade and other payables
(18)
(3)
23
(21)
39
(136)
(82)
(76)
(219)
(106)
Rounding of figures may result in computational discrepancies.
Statement of recognised income and expense
Six months
Year
Six months
ended
ended
ended
June
December
June
2008
2007
2007
SA Rand million
Unaudited
Audited
Unaudited
Actuarial loss on pension and post-retirement benefits
-
(99)
-
Net loss on cash flow hedges removed from equity and reported in gold sales
1,017
1,421
540
Net loss on cash flow hedges
(763)
(1,173)
(67)
Hedge (effectiveness) ineffectiveness
(2)
69
-
(Loss) gain on available-for-sale financial assets
(67)
8
-
Deferred taxation on items above
(51)
36
(74)
Translation
4,108
(169)
376
Net income recognised directly in equity
4,242
93
775
(Loss) profit for the period
(4,419)
(4,047)
1,057
Total recognised (expense) income for the period
(177)
(3,954)
1,832
Attributable to:
Equity shareholders
Equity shareholders
(438)
(4,169)
1,705
Minority interest
261
215
127
(177)
(3,954)
1,832
US Dollar million
Actuarial loss on pension and post-retirement benefits
-
(14)
-
Net loss on cash flow hedges removed from equity and reported in gold sales
134
202
78
Net loss on cash flow hedges
(100)
(168)
(10)
Hedge ineffectiveness
-
10
-
(Loss) gain on available-for-sale financial assets
(9)
1
-
Deferred taxation on items above
(6)
5
(11)
Translation
351
6
50
Net income recognised directly in equity
370
42
107
(Loss) profit for the period
(283)
(636)
148
Total recognised income (expense) for the period
87
(594)
255
Attributable to:
Equity shareholders
Equity shareholders
62
(627)
237
Minority interest
25
33
18
87
(594)
255
Rounding of figures may result in computational discrepancies.
Notes
for the quarter and six months ended 30 June 2008
1. Basis of preparation
The financial statements in this quarterly report have been prepared in accordance with the historic cost convention
except for certain financial instruments which are stated at fair value. The group's accounting policies used in the
preparation of these financial statements are consistent with those used in the annual financial statements for the
year ended 31 December 2007 and revised International Financial Reporting Standards (IFRS) which are effective
1 January 2008, where applicable.
except for certain financial instruments which are stated at fair value. The group's accounting policies used in the
preparation of these financial statements are consistent with those used in the annual financial statements for the
year ended 31 December 2007 and revised International Financial Reporting Standards (IFRS) which are effective
1 January 2008, where applicable.
The financial statements of AngloGold Ashanti Limited have been prepared in compliance with IAS34, JSE Listings
Requirements and in the manner required by the South African Companies Act, 1973 for the preparation of financial
information of the group for the quarter and six months ended 30 June 2008.
Requirements and in the manner required by the South African Companies Act, 1973 for the preparation of financial
information of the group for the quarter and six months ended 30 June 2008.
2. Revenue
Quarter ended
Six months ended
Quarter ended
Six months ended
Jun
Mar
Jun
Jun
Jun
Jun
Mar
Jun
Jun
Jun
2008
2008
2007
2008
2007
2008
2008
2007
2008
2007
Unaudited
Unaudited Unaudited
Unaudited
Unaudited
Unaudited
Unaudited Unaudited
Unaudited
Unaudited
SA Rand million
US Dollar million
Gold income
7,508
7,245
5,222
14,753
10,886
968
958
739
1,926
1,522
By-products (note 3)
110
145
178
254
323
14
19
25
33
45
Interest received
102
82
62
184
135
13
11
9
24
19
7,720
7,471
5,461
15,191
11,343
996
987
773
1,983
1,586
3. Cost of sales
Quarter ended
Six months ended
Quarter ended
Six months ended
Jun
2008
Mar
2008
Jun
2007
Jun
2008
Jun
2007
Jun
2008
Mar
2008
Jun
2007
Jun
2008
Jun
2007
Unaudited
Unaudited Unaudited
Unaudited
Unaudited
Unaudited
Unaudited Unaudited Unaudited Unaudited
SA Rand million
US Dollar million
Cash operating costs
(4,168)
(3,770)
(3,176)
(7,937)
(6,274)
(537)
(500)
(449)
(1,036)
(878)
By-products revenue (note 2)
110
145
178
254
323
14
19
25
33
45
By-products cash operating
costs
costs
(159)
(107)
(143)
(265)
(243)
(21)
(14)
(20)
(35)
(34)
(4,217)
(3,732)
(3,141)
(7,948)
(6,194)
(544)
(495)
(444)
(1,038)
(867)
Other cash costs
(207)
(251)
(165)
(459)
(342)
(27)
(33)
(23)
(60)
(48)
Total cash costs
(4,424)
(3,983)
(3,305)
(8,407)
(6,537)
(570)
(528)
(468)
(1,098)
(915)
Retrenchment costs
(15)
(26)
(9)
(42)
(16)
(2)
(3)
(1)
(5)
(2)
Rehabilitation and
other non-cash costs
other non-cash costs
(15)
(106)
(19)
(120)
(39)
(2)
(14)
(3)
(15)
(5)
Production costs
(4,454)
(4,115)
(3,333)
(8,569)
(6,591)
(574)
(545)
(471)
(1,119)
(923)
Amortisation of
tangible assets
tangible assets
(1,184)
(1,082)
(1,009)
(2,266)
(1,957)
(153)
(144)
(143)
(296)
(274)
Amortisation of
intangible assets
intangible assets
(4)
(4)
(3)
(8)
(7)
–
–
–
(1)
(1)
Total production costs
(5,642)
(5,201)
(4,346)
(10,843)
(8,556)
(727)
(689)
(615)
(1,416)
(1,198)
Inventory change
236
209
214
445
200
30
28
30
58
28
(5,406)
(4,992)
(4,132)
(10,398)
(8,356)
(698)
(661)
(585)
(1,359)
(1,169)
Rounding of figures may result in computational discrepancies.
4. (Loss) gain on non-hedge derivatives and other commodity contracts
Quarter ended
Six months ended
Quarter ended
Six months ended
Jun
2008
Mar
2008
Jun
2007
Jun
2008
Jun
2007
Jun
2008
Mar
2008
Jun
2007
Jun
2008
Jun
2007
Unaudited
Unaudited
Unaudited
Unaudited
Unaudited
Unaudited
Unaudited
Unaudited
Unaudited
Unaudited
SA Rand million
US Dollar million
(Loss) gain on realised non-hedge
derivatives
derivatives
(249)
(158)
598
(407)
990
(32)
(22)
84
(54)
139
Realised loss on other commodity
contracts
contracts
(128)
–
–
(128)
–
(16)
–
–
(16)
–
Loss on accelerated settlement of non-
hedge derivatives
hedge derivatives
(8,635)
–
–
(8,635)
–
(1,089)
–
–
(1,089)
–
Gain (loss) on unrealised non-hedge
derivatives
derivatives
7,673
(5,464)
99
2,210
(902)
899
(353)
(28)
547
(127)
Unrealised gain (loss) on other commodity
physical borrowings
physical borrowings
19
(10)
19
9
(28)
2
(1)
3
1
(4)
Provision reversed for loss on future
deliveries of other commodities
deliveries of other commodities
3
20
125
23
119
–
3
18
3
17
(Loss) gain on non-hedge derivatives and
other commodity contracts
other commodity contracts
(1,316)
(5,612)
840
(6,928)
178
(235)
(373)
77
(608)
25
5. Other operating (expenses) income
Quarter ended
Six months ended
Quarter ended
Six months ended
Jun
2008
Mar
2008
Jun
2007
Jun
2008
Jun
2007
Jun
2008
Mar
2008
Jun
2007
Jun
2008
Jun
2007
Unaudited
Unaudited
Unaudited
Unaudited
Unaudited
Unaudited
Unaudited
Unaudited
Unaudited
Unaudited
SA Rand million
US Dollar million
Pension and medical defined
benefit provisions
benefit provisions
(24)
(24)
(25)
(48)
(50)
(3)
(3)
(3)
(6)
(7)
Claims filed by former employees in
respect of loss of employment, work-
related accident injuries and diseases,
governmental fiscal claims and costs of
old tailings operations
respect of loss of employment, work-
related accident injuries and diseases,
governmental fiscal claims and costs of
old tailings operations
(27)
60
(6)
33
(27)
(3)
8
(1)
5
(4)
Miscellaneous
3
(4)
(12)
(1)
(14)
–
(1)
(2)
(1)
(2)
(48)
32
(43)
(16)
(91)
(6)
4
(6)
(2)
(13)
6. Operating special items
Quarter ended
Six months ended
Quarter ended
Six months ended
Jun
2008
Mar
2008
Jun
2007
Jun
2008
Jun
2007
Jun
2008
Mar
2008
Jun
2007
Jun
2008
Jun
2007
Unaudited
Unaudited
Unaudited
Unaudited
Unaudited
Unaudited
Unaudited
Unaudited
Unaudited
Unaudited
SA Rand million
US Dollar million
Reimbursement (under provision) of
indirect tax expenses
indirect tax expenses
49
–
(6)
49
(6)
6
–
(1)
6
(1)
Impairment of tangible
assets (note 9)
assets (note 9)
(1)
(3)
–
(4)
(1)
–
–
–
–
–
Recovery of loan
–
–
–
–
21
–
–
–
–
3
ESOP and BEE costs resulting from rights
offer
(76)
–
–
(76)
–
(10)
–
–
(10)
–
Profit on disposal and abandonment of
assets (note 9)
assets (note 9)
272
85
92
357
86
35
11
13
46
12
Profit on disposal of investment in
subsidiary (note 9)
subsidiary (note 9)
29
–
–
29
–
4
–
–
4
–
273
82
86
355
101
36
11
12
47
14
Rounding of figures may result in computational discrepancies.
7. Taxation
Quarter ended
Six months ended
Quarter ended
Six months ended
Jun
2008
Mar
2008
Jun
2007
Jun
2008
Jun
2007
Jun
2008
Mar
2008
Jun
2007
Jun
2008
Jun
2007
Unaudited
Unaudited
Unaudited
Unaudited
Unaudited
Unaudited
Unaudited
Unaudited
Unaudited
Unaudited
SA Rand million
US Dollar million
Current tax
Normal taxation
(270)
(577)
(333)
(847)
(775)
(36)
(77)
(46)
(111)
(108)
Disposal of tangible
assets (note 9)
assets (note 9)
(3)
(2)
(18)
(5)
(22)
–
–
(3)
(1)
(3)
(Under) over provision
prior year
prior year
(28)
14
23
(14)
(44)
(4)
2
3
(2)
(6)
(301)
(565)
(328)
(866)
(841)
(40)
(75)
(46)
(114)
(117)
Deferred taxation
Temporary differences
604
(151)
31
452
32
76
(20)
4
55
4
Unrealised non-hedge
derivatives and other
commodity contracts
commodity contracts
(1,545)
590
22
(954)
104
(194)
72
4
(122)
15
Disposal of tangible
assets (note 9)
assets (note 9)
7
(11)
(6)
(4)
(10)
1
(1)
(1)
–
(1)
Change in estimated
deferred tax rate
deferred tax rate
–
–
(90)
–
(90)
–
–
(13)
–
(13)
Change in statutory tax rate
–
189
–
189
–
–
25
–
25
–
(934)
617
(43)
(317)
36
(117)
76
(6)
(42)
5
Total taxation
(1,235)
52
(371)
(1,183)
(805)
(157)
1
(52)
(156)
(112)
8. Discontinued operations
The Ergo surface dump reclamation, which forms part of the South African operations, has been discontinued as the
operation has reached the end of its useful life. The results of Ergo are presented below:
operation has reached the end of its useful life. The results of Ergo are presented below:
Quarter ended
Six months ended
Quarter ended
Six months ended
Jun
2008
Mar
2008
Jun
2007
Jun
2008
Jun
2007
Jun
2008
Mar
2008
Jun
2007
Jun
2008
Jun
2007
Unaudited
Unaudited
Unaudited
Unaudited
Unaudited
Unaudited
Unaudited
Unaudited
Unaudited
Unaudited
SA Rand million
US Dollar million
Gold income
–
–
2
–
4
–
–
–
–
1
Cost of sales
(12)
(5)
(5)
(17)
(10)
(2)
(1)
(1)
(2)
(1)
Gross loss
(12)
(5)
(2)
(17)
(6)
(2)
(1)
(1)
(2)
(1)
Profit on disposal of assets
217
–
–
217
–
27
–
–
27
–
Other income
3
3
–
5
–
–
1
–
1
–
Profit (loss) before taxation
207
(2)
(2)
205
(6)
26
–
(1)
26
(1)
Normal tax
(22)
–
(3)
(22)
(3)
(3)
–
–
(3)
–
Deferred tax on disposal of assets
(note 9)
(note 9)
6
–
–
6
–
1
–
–
1
–
Other deferred tax
–
(1)
1
(1)
(1)
–
–
–
–
–
Net profit (loss) attributable
to discontinued operations
to discontinued operations
191
(3)
(4)
188
(10)
24
–
(1)
24
(1)
The pre-tax profit on disposal of the assets amounting to $27million (R217 million) relates to the remaining moveable and immovable assets of Ergo
that was sold by the Company to a consortium of Mintails South Africa (Pty) Ltd/DRD South African Operations (Pty) Ltd Joint Venture. The
transaction was approved by the Competition Commissioner during May 2008 and the Joint Venture will operate, for its own account, under the
AngloGold Ashanti authorisations until the new order mining rights have been obtained and transferred to the Joint Venture.
that was sold by the Company to a consortium of Mintails South Africa (Pty) Ltd/DRD South African Operations (Pty) Ltd Joint Venture. The
transaction was approved by the Competition Commissioner during May 2008 and the Joint Venture will operate, for its own account, under the
AngloGold Ashanti authorisations until the new order mining rights have been obtained and transferred to the Joint Venture.
Rounding of figures may result in computational discrepancies.
9. Headline (loss) earnings
Quarter ended
Six months ended
Quarter ended
Six months ended
Jun
2008
Mar
2008
Jun
2007
Jun
2008
Jun
2007
Jun
2008
Mar
2008
Jun
2007
Jun
2008
Jun
2007
Unaudited
Unaudited
Unaudited
Unaudited
Unaudited
Unaudited
Unaudited
Unaudited
Unaudited
Unaudited
SA Rand million
US Dollar million
The (loss) profit attributable to
equity shareholders has been
adjusted by the following to arrive
at headline (loss) earnings:
(Loss) profit attributable to
equity shareholders
equity shareholders has been
adjusted by the following to arrive
at headline (loss) earnings:
(Loss) profit attributable to
equity shareholders
(817)
(3,812)
1,083
(4,630)
933
(168)
(142)
111
(310)
131
Impairment of tangible assets (note 6)
1
3
–
4
1
–
–
–
–
–
Profit on disposal and abandonment
of assets (note 6)
of assets (note 6)
(272)
(85)
(92)
(357)
(86)
(35)
(11)
(13)
(46)
(12)
Profit on disposal of investment in
subsidiary (note 6)
subsidiary (note 6)
(29)
–
–
(29)
–
(4)
–
–
(4)
–
Profit on disposal of discontinued
assets (note 8)
assets (note 8)
(217)
–
–
(217)
–
(27)
–
–
(27)
–
Impairment of investment in associate
13
1
50
14
50
2
–
7
2
7
Profit on disposal of assets in
associate
associate
(23)
–
–
(23)
–
(3)
–
–
(3)
–
Taxation on items above –
current portion (note 7)
current portion (note 7)
3
2
18
5
22
–
–
3
1
3
Taxation on items above –
deferred portion (note 7)
deferred portion (note 7)
(7)
11
6
4
10
(1)
1
1
–
1
Discontinued operation – Taxation
on item above (note 8)
on item above (note 8)
(6)
–
–
(6)
–
(1)
–
–
(1)
–
Headline (loss) earnings
(1,354)
(3,880)
1,066
(5,234)
930
(237)
(151)
109
(388)
130
Cents per share
(1)
Headline (loss) earnings
(479)
(1,376)
379
(1,853)
331
(84)
(54)
39
(137)
46
(1)
Calculated on the basic weighted average number of ordinary shares.
10. Shares
Quarter ended
Six months ended
Jun
2008
Mar
2008
Jun
2007
Jun
2008
Jun
2007
Unaudited
Unaudited
Unaudited
Unaudited
Unaudited
Authorised:
Ordinary shares of 25 SA cents each
400,000,000
400,000,000
400,000,000
400,000,000
400,000,000
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:
Ordinary shares in issue
277,894,808
277,745,007
276,836,030
277,894,808
276,836,030
E ordinary shares in issue
4,042,865
4,104,635
4,115,930
4,042,865
4,115,930
Total ordinary shares:
281,937,673
281,849,642
280,951,960
281,937,673
280,951,960
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 diluted number of ordinary shares outstanding
for the period, the following were taken into consideration:
for the period, the following were taken into consideration:
Ordinary
shares
277,825,711
277,658,759
276,792,157
277,742,234
276,619,448
E ordinary shares
4,064,751
4,122,800
4,152,725
4,093,776
4,150,888
Fully
vested
options
607,752
280,789
308,961
630,553
359,980
Weighted average number of shares
282,498,214
282,062,348
281,253,843
282,466,563
281,130,316
Dilutive potential of share options
–
–
568,077
–
619,872
Diluted number of ordinary shares
(1)
282,498,214
282,062,348
281,821,920
282,466,563
281,750,188
(1)
The basic and diluted number of ordinary shares is the same for the March 2008 quarter, June 2008 quarter and period ended six months June 2008 as
the effects of shares for performance related options are anti-dilutive.
Rounding of figures may result in computational discrepancies.
Rounding of figures may result in computational discrepancies.
11. Share capital and premium
As at
As at
Jun
2008
Mar
2008
Dec
2007
Jun
2007
Jun
2008
Mar
2008
Dec
2007
Jun
2007
Unaudited
Unaudited
Audited
Unaudited
Unaudited
Unaudited
Audited
Unaudited
SA Rand million
US Dollar million
Balance at beginning of period
23,322
23,322
23,045
23,045
3,425
3,425
3,292
3,292
Ordinary shares issued
112
73
283
146
15
10
40
19
E ordinary shares cancelled
(10)
(5)
(6)
(9)
(1)
(1)
(1)
(1)
Translation
–
–
–
–
(448)
(544)
94
(7)
Sub-total
23,424
23,391
23,322
23,182
2,991
2,890
3,425
3,303
Redeemable preference shares held within the
group
group
(312)
(312)
(312)
(312)
(40)
(39)
(46)
(44)
Ordinary shares held within the group
(282)
(288)
(292)
(289)
(36)
(36)
(43)
(41)
E ordinary shares held within the group
(335)
(343)
(347)
(344)
(43)
(42)
(51)
(49)
Balance at end of period
22,495
22,448
22,371
22,237
2,872
2,773
3,285
3,169
12. Retained earnings and other reserves
Retained
earnings
Non-
distributable
reserves
Foreign
currency
translation
reserve
Actuarial
(losses)
gains
Other
comprehen-
sive
income
Total
SA Rand million
Balance at December 2006
Balance at December 2006
(214)
138
436
(45)
(1,503)
(1,188)
Profit attributable to equity shareholders
933
933
Dividends (668)
(668)
Net loss on cash flow hedges removed from
equity and reported in gold sales
equity and reported in gold sales
536
536
Net loss on cash flow hedges
(67)
(67)
Deferred taxation on cash flow hedges
(74)
(74)
Share-based payment for share awards and BEE
transaction
transaction
117
117
Translation
385
(8)
377
Balance at June 2007
51 138
821
(45)
(999)
(34)
Balance at December 2007 (5,524)
138
338
(108)
(1,011)
(6,167)
Deferred taxation rate change
(3)
(3)
Loss attributable to equity shareholders
(4,630)
(4,630)
Dividends (148)
(148)
Transfers to foreign currency translation reserve
(12)
12
–
Disposal of subsidiary
(6) (6)
Net loss on cash flow hedges removed from equity
and reported in gold sales
and reported in gold sales
1,005
1,005
Net loss on cash flow hedges
(758)
(758)
Hedge ineffectiveness
(2)
(2)
Deferred taxation on cash flow hedges and hedge
effectiveness
effectiveness
(64)
(64)
Loss on available-for-sale financial assets
(67)
(67)
Deferred taxation on available-for-sale financial
assets
assets
16
16
Share-based payment for share awards and BEE
transaction
transaction
186
186
Translation
4,175
2
(112)
4,065
Balance at June 2008
(10,314)
138
4,525
(109)
(813)
(6,573)
Rounding of figures may result in computational discrepancies.
12. Retained earnings and other reserves cont.
Retained
earnings
Non-
distributable
reserves
Foreign
currency
translation
reserve
Actuarial
(losses)
gains
Other
omprehen-
sive
income
Total
US Dollar million
Balance at December 2006
Balance at December 2006
(209)
20
241
(6)
(215)
(169)
Profit attributable to equity shareholders
131
131
Dividends
(90)
(90)
Net loss on cash flow hedges removed from
equity and reported in gold sales
equity and reported in gold sales
77
77
Net loss on cash flow hedges
(10)
(10)
Deferred taxation on cash flow hedges
(11)
(11)
Share-based payment for share awards and BEE
transaction
transaction
17
17
Translation
50
50
Balance at June 2007
(168)
20
291
(6)
(142)
(5)
Balance at December 2007
(1,020)
20
258
(16)
(148)
(906)
Deferred taxation rate change
–
Loss attributable to equity shareholders
(310)
(310)
Dividends
(18)
(18)
Transfers to foreign currency translation reserve
(2)
2
–
Disposal of
subsidiary
(1)
(1)
Net loss on cash flow hedges removed
from equity and reported in gold sales
from equity and reported in gold sales
132
132
Net loss on cash flow hedges
(99)
(99)
Hedge ineffectiveness
–
–
Deferred taxation on cash flow hedges and hedge
effectiveness
effectiveness
(8)
(8)
Loss on available-for-sale financial assets
(9)
(9)
Deferred taxation on available-for-sale financial
assets
assets
2
2
Share-based payment for share awards and BEE
transaction
transaction
24
24
Translation
(2)
351
2
3
354
Balance at June 2008
(1,350)
18
611
(14)
(104)
(839)
13. Minority
interests
As at
As at
Jun
2008
Mar
2008
Dec
2007
Jun
2007
Jun
2008
Mar
2008
Dec
2007
Jun
2007
Unaudited
Unaudited
Audited
Unaudited
Unaudited
Unaudited
Audited
Unaudited
SA Rand million
US Dollar million
Balance at beginning of period
429
429
436
436
63
63
62
62
Profit for the period
211
90
222
124
27
11
32
17
Dividends paid
(53)
(4)
(131)
(88)
(7)
(1)
(19)
(12)
Acquisition of minority interest
(1)
–
–
(91)
–
–
–
(13)
–
Net loss on cash flow hedges removed from
equity and reported in gold sales
equity and reported in gold sales
12
6
14
4
2
1
2
1
Net loss on cash flow hedges
(5)
(5)
(12)
–
(1)
(1)
(2)
–
Translation
43
60
(9)
(1)
(3)
(2)
1
–
Balance at end of period
637
576
429
475
81
71
63
68
(1) With effect 1 September 2007, AngloGold Ashanti acquired the remaining 15% minorities of Iduapriem.
Rounding of figures may result in computational discrepancies
.
14.
Derivatives
Hedge book delta reduced by 2.71Moz during the quarter, ahead of schedule.
15.
Trade, other payables and deferred income
The amount of $1,616m (R12,658m) as at 30 June 2008 includes an accrual for the accelerated cancellation of non-
hedge derivative contracts amounting to $1,009m (R7,900m). These accruals were cash settled during the month of
July 2008.
hedge derivative contracts amounting to $1,009m (R7,900m). These accruals were cash settled during the month of
July 2008.
16.
Exchange rates
Jun
2008
Mar
2008
Jun
2007
Dec
2007
Unaudited
Unaudited
Unaudited
Unaudited
Rand/US dollar average for the year to date
7.64
7.52
7.14
7.03
Rand/US dollar average for the quarter
7.76
7.52
7.07
6.76
Rand/US dollar closing
7.83
8.09
7.02
6.81
Rand/Australian dollar average for the year to date
7.08
6.84
5.78
5.89
Rand/Australian dollar average for the quarter
7.32
6.84
5.88
6.00
Rand/Australian dollar closing
7.54
7.40
5.96
5.98
BRL/US dollar average for the year to date
1.70
1.74
2.04
1.95
BRL/US dollar average for the quarter
1.65
1.74
1.97
1.78
BRL/US dollar closing
1.59
1.74
1.92
1.78
17.
Capital commitments
Jun
2008
Mar
2008
Jun
2007
Dec
2007
Jun
2008
Mr
2008
Jun
2007
Dec
2007
Unaudited
Unaudited Unaudited
Audited Unaudited
Unaudited Unaudited
Audited
SA Rand million
US Dollar million
Orders placed and outstanding on capital contracts
at the prevailing rate of exchange
at the prevailing rate of exchange
7,510
3,697
4,216
2,968
948
457
601
436
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.
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
and 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.
and 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 financing arrangements contain financial covenants and other similar undertakings. To the extent that external
borrowings are required, the groups 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 these facilities can be refinanced on
similar terms to those currently in place.
borrowings are required, the groups 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 these facilities can be refinanced on
similar terms to those currently in place.
18.
Contingent liabilities
AngloGold Ashanti’s material contingent liabilities at 30 June 2008 are detailed below:
Groundwater pollution – South Africa – AngloGold Ashanti has identified a number of groundwater pollution sites at its
current operations in South Africa, and has investigated a number of different technologies and methodologies that
could possibly be used to remediate the pollution plumes. The viability of the suggested remediation techniques in the
local geological formation in South Africa is however unknown. No sites have been remediated and present research
and development work is focused on several pilot projects to find a solution that will in fact yield satisfactory results in
South African conditions. Subject to the technology being developed as a remediation technique, no reliable estimate
can be made for the obligation.
current operations in South Africa, and has investigated a number of different technologies and methodologies that
could possibly be used to remediate the pollution plumes. The viability of the suggested remediation techniques in the
local geological formation in South Africa is however unknown. No sites have been remediated and present research
and development work is focused on several pilot projects to find a solution that will in fact yield satisfactory results in
South African conditions. Subject to the technology being developed as a remediation technique, no reliable estimate
can be made for the obligation.
Deep groundwater pollution – South Africa – AngloGold Ashanti has identified a flooding and future pollution risk
posed by deep groundwater, due to the interconnected nature of operations in the West Wits and Vaal River
operations. AGA is involved in Task Teams and other structures to find long term sustainable solutions for this risk,
together with industry partners and government. There is too little foundation for the accurate estimate of a liability and
thus no reliable estimate can be made for the obligation.
posed by deep groundwater, due to the interconnected nature of operations in the West Wits and Vaal River
operations. AGA is involved in Task Teams and other structures to find long term sustainable solutions for this risk,
together with industry partners and government. There is too little foundation for the accurate estimate of a liability and
thus no reliable estimate can be made for the obligation.
Provision of surety – South Africa – AngloGold Ashanti has provided sureties in favour of a lender on a gold loan
facility with its affiliate Oro Africa (Pty) Ltd and one of its subsidiaries to a maximum value of R100m ($13m). The
suretyship agreements have a termination notice period of 90 days.
facility with its affiliate Oro Africa (Pty) Ltd and one of its subsidiaries to a maximum value of R100m ($13m). The
suretyship agreements have a termination notice period of 90 days.
Sales tax on gold deliveries – Brazil – Mineração Serra Grande S.A. (MSG), the operator of the Crixas mine in Brazil,
has received two tax assessments from the State of Goiás related to payments of sales taxes on gold deliveries for
export, one for the period between February 2004 and June 2005 and the other for the period between July 2005 and
May 2006. The tax authorities maintain that whenever a taxpayer exports gold mined in the state of Goiás, through a
branch located in a different Brazilian State, it must obtain an authorisation from the Goiás State Treasury by means of
a Special Regime Agreement (Termo de Acordo re Regime Especial – TARE). The Serra Grande operation is co-
owned with Kinross Gold Corporation. AngloGold Ashanti Brasil Mineração Ltda. manages the operation and its
attributable share of the first assessment is approximately $47m. Although MSG requested the TARE in early 2004,
the TARE, which authorised the remittance of gold to the company’s branch in Minas Gerais specifically for export
purposes, was only granted and executed in May 2006.
has received two tax assessments from the State of Goiás related to payments of sales taxes on gold deliveries for
export, one for the period between February 2004 and June 2005 and the other for the period between July 2005 and
May 2006. The tax authorities maintain that whenever a taxpayer exports gold mined in the state of Goiás, through a
branch located in a different Brazilian State, it must obtain an authorisation from the Goiás State Treasury by means of
a Special Regime Agreement (Termo de Acordo re Regime Especial – TARE). The Serra Grande operation is co-
owned with Kinross Gold Corporation. AngloGold Ashanti Brasil Mineração Ltda. manages the operation and its
attributable share of the first assessment is approximately $47m. Although MSG requested the TARE in early 2004,
the TARE, which authorised the remittance of gold to the company’s branch in Minas Gerais specifically for export
purposes, was only granted and executed in May 2006.
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. The State of Goiás has appealed to the full board of the State of Goiás tax
administrative council. The second assessment was issued by the State of Goiás in October 2006 on the same
grounds as the first one, and the attributable share of the assessment is approximately $29m. The company believes
both assessments are in violation of Federal legislation on sales taxes.
liability related to the first period. The State of Goiás has appealed to the full board of the State of Goiás tax
administrative council. The second assessment was issued by the State of Goiás in October 2006 on the same
grounds as the first one, and the attributable share of the assessment is approximately $29m. The company believes
both assessments are in violation of Federal legislation on sales taxes.
VAT Disputes – Brazil – MSG received a tax assessment in October 2003 from the State of Minas Gerais related to
sales taxes on gold allegedly returned from the branch in Minas Gerais to the company head office in the State of
Goiás. The tax administrators rejected the company’s appeal against the assessment. The company is now discussing
the case at the judicial sphere. The company’s attributable share of the assessment is approximately $9m.
sales taxes on gold allegedly returned from the branch in Minas Gerais to the company head office in the State of
Goiás. The tax administrators rejected the company’s appeal against the assessment. The company is now discussing
the case at the judicial sphere. The company’s attributable share of the assessment is approximately $9m.
Tax Disputes – Brazil – Morro Velho and AngloGold Ashanti Brasil Mineração are involved in disputes with tax
authorities. These disputes involve seven federal tax assessments including income tax, social contributions and
annual property tax based on ownership of properties outside of urban perimeters (ITR). The amount involved is
approximately $12m.
authorities. These disputes involve seven federal tax assessments including income tax, social contributions and
annual property tax based on ownership of properties outside of urban perimeters (ITR). The amount involved is
approximately $12m.
19.
Concentration of risk
There is a concentration of risk in respect of reimbursable value added tax and fuel duties from the Malian
government:
government:
•
Reimbursable value added tax due from the Malian government amounts to an attributable $52m at 30 June 2008
(31 March 2008: attributable $47m). The last audited value added tax return was for the period ended 31 March
2007 and at the balance sheet date an attributable $23m was still outstanding and $29m is still subject to audit.
The accounting processes for the unaudited amount are in accordance with the processes advised by the Malian
government in terms of the previous audits.
2007 and at the balance sheet date an attributable $23m was still outstanding and $29m is still subject to audit.
The accounting processes for the unaudited amount are in accordance with the processes advised by the Malian
government in terms of the previous audits.
•
Reimbursable fuel duties from the Malian government amounts to an attributable $7m at 30 June 2008 (31 March
2008: attributable $6m). Fuel duty refund claims are required to be submitted before 31 January of the following
year and are subject to authorisation by firstly the Department of Mining and secondly the Custom and Excise
authorities. An attributable $5m is still subject to authorisation by the authorities. The accounting processes for the
unauthorised amount are in accordance with the processes advised by the Malian government in terms of the
previous authorisations. As from February 2006 all fuel duties have been exonerated.
year and are subject to authorisation by firstly the Department of Mining and secondly the Custom and Excise
authorities. An attributable $5m is still subject to authorisation by the authorities. The accounting processes for the
unauthorised amount are in accordance with the processes advised by the Malian government in terms of the
previous authorisations. As from February 2006 all fuel duties have been exonerated.
The government of Mali is a shareholder in all the Malian entities. Management is in negotiations with the Government
of Mali to agree a protocol for the repayment of the outstanding amounts. The amounts outstanding have been
discounted to their present value at a rate of 6.5%.
of Mali to agree a protocol for the repayment of the outstanding amounts. The amounts outstanding have been
discounted to their present value at a rate of 6.5%.
There is a concentration of risk in respect of reimbursable value added tax and fuel duties from the Tanzanian
government:
government:
•
Reimbursable value added tax due from the Tanzanian government amounts to $15m at 30 June 2008 (31 March
2008: $17m). The last audited value added tax return was for the period ended 30 April 2008 and at the balance
sheet date $15m was still outstanding which has been subjected to audit. The accounting processes for the
unaudited amount are in accordance with the processes advised by the Tanzanian government in terms of the
previous audits. The outstanding amounts have been discounted to their present value at a rate of 7.8%.
sheet date $15m was still outstanding which has been subjected to audit. The accounting processes for the
unaudited amount are in accordance with the processes advised by the Tanzanian government in terms of the
previous audits. The outstanding amounts have been discounted to their present value at a rate of 7.8%.
•
Reimbursable fuel duties from the Tanzanian government amounts to $41m at 30 June 2008 (31 March
2008: $36m). Fuel duty claims are required to be submitted after consumption of the related fuel and are subject to
authorisation by the Customs and Excise authorities. Claims for refund of fuel duties amounting to $26m have
been lodged with the Customs and Excise authorities, which are still outstanding, whilst claims for refund of $15m
have not yet been submitted. The accounting processes for the unauthorised amount are in accordance with the
processes advised by the Tanzanian government in terms of the previous authorisations. The outstanding amounts
have been discounted to their present value at a rate of 7.8%.
authorisation by the Customs and Excise authorities. Claims for refund of fuel duties amounting to $26m have
been lodged with the Customs and Excise authorities, which are still outstanding, whilst claims for refund of $15m
have not yet been submitted. The accounting processes for the unauthorised amount are in accordance with the
processes advised by the Tanzanian government in terms of the previous authorisations. The outstanding amounts
have been discounted to their present value at a rate of 7.8%.
20.
Attributable
interest
Although AngloGold Ashanti holds a 66.7% interest in Cripple Creek & Victor Gold Mining Company Limited, it is
currently entitled to receive 100% of the cash flows from the operation until the loan, extended to the joint venture by
AngloGold Ashanti USA Inc., is repaid.
currently entitled to receive 100% of the cash flows from the operation until the loan, extended to the joint venture by
AngloGold Ashanti USA Inc., is repaid.
21.
Borrowings
AngloGold Ashanti's borrowings are interest bearing.
22.
Announcements
On 6 May 2008, AngloGold Ashanti announced the retirement of Mrs E Le R Bradley from the board effective
6 May 2008.
6 May 2008.
On 6 May 2008, AngloGold Ashanti announced the completion of the initial JORC-compliant resource estimate for
the La Colosa deposit, the second significant greenfields discovery (Gramalote being the first) in Colombia, which
was discovered by AngloGold Ashanti’s Colombian greenfields exploration team during 2006. The Project which is
100% owned by AngloGold Ashanti and is located 150km west of Colombia’s capital city, Bogota, in the department
of Tolima and is expected to yield some 12.9Moz of inferred Mineral Resource at a gold price of $1,000/oz.
the La Colosa deposit, the second significant greenfields discovery (Gramalote being the first) in Colombia, which
was discovered by AngloGold Ashanti’s Colombian greenfields exploration team during 2006. The Project which is
100% owned by AngloGold Ashanti and is located 150km west of Colombia’s capital city, Bogota, in the department
of Tolima and is expected to yield some 12.9Moz of inferred Mineral Resource at a gold price of $1,000/oz.
On 15 May 2008, AngloGold Ashanti announced that it had terminated the process related to its proposed sale of
its interests in Morila Limited, due to the fact that no proposals were received which met the company’s value
criteria for such a sale. AngloGold Ashanti will remain a joint venture partner in Morila Limited, together with
Randgold Resources Limited and consequently, through Morila Limited, a joint venture partner together with the
Government of Mali in Morila SA. Randgold Resources will continue as the operator of Morila Gold Mine.
its interests in Morila Limited, due to the fact that no proposals were received which met the company’s value
criteria for such a sale. AngloGold Ashanti will remain a joint venture partner in Morila Limited, together with
Randgold Resources Limited and consequently, through Morila Limited, a joint venture partner together with the
Government of Mali in Morila SA. Randgold Resources will continue as the operator of Morila Gold Mine.
On 16 May 2008, AngloGold Ashanti announced that it had completed the transaction to acquire a 15.9% direct
interest in B2Gold and increase B2Gold’s interest in certain Colombian properties, as announced on 14 February
2008
interest in B2Gold and increase B2Gold’s interest in certain Colombian properties, as announced on 14 February
2008
On 29 May 2008, AngloGold Ashanti announced its amendment to the merger agreement to acquire 100% of
Golden Cycle Gold Corporation (GCGC) to adjust the consideration that GCGC shareholders receive from
0.29 AngloGold Ashanti ADRs to 0.3123 AngloGold Ashanti ADRs to account for the effects of the AngloGold
Ashanti rights offer announced on 23 May 2008. GCGC shareholders approved the merger on 30 June 2008 at a
general meeting and the merger became effective on 1 July 2008 at which time, AngloGold Ashanti acquired the
remaining 33% shareholding in CC&V. A total of 3,181,198 AngloGold Ashanti ADRs were issued pursuant to this
transaction.
Golden Cycle Gold Corporation (GCGC) to adjust the consideration that GCGC shareholders receive from
0.29 AngloGold Ashanti ADRs to 0.3123 AngloGold Ashanti ADRs to account for the effects of the AngloGold
Ashanti rights offer announced on 23 May 2008. GCGC shareholders approved the merger on 30 June 2008 at a
general meeting and the merger became effective on 1 July 2008 at which time, AngloGold Ashanti acquired the
remaining 33% shareholding in CC&V. A total of 3,181,198 AngloGold Ashanti ADRs were issued pursuant to this
transaction.
On 26 June 2008, AngloGold Ashanti announced that the Johannesburg High Court ruled that the exception lodged
by AngloGold Ashanti in respect of Mr Thembekile Mankayi’s claim for damages against the company had been
upheld. Mr Mankayi had lodged a R2.7m claim in respect of occupational lung disease allegedly sustained during
his employment at AngloGold Ashanti’s then Vaal Reefs mine in the 1990s. The finding confirms that employees
who qualify for benefits in respect of the Occupational Diseases in Mines and Works Act (ODMWA) may not, in
addition, lodge civil claims against their employers in respect of their relevant conditions.
by AngloGold Ashanti in respect of Mr Thembekile Mankayi’s claim for damages against the company had been
upheld. Mr Mankayi had lodged a R2.7m claim in respect of occupational lung disease allegedly sustained during
his employment at AngloGold Ashanti’s then Vaal Reefs mine in the 1990s. The finding confirms that employees
who qualify for benefits in respect of the Occupational Diseases in Mines and Works Act (ODMWA) may not, in
addition, lodge civil claims against their employers in respect of their relevant conditions.
On 30 June 2008, AngloGold Ashanti announced further changes to its Executive Management as part of its
previously announced transformation.
previously announced transformation.
Shareholders at a general meeting held on 22 May 2008 approved the issue of new ordinary shares to AngloGold
Ashanti ordinary and E ordinary shareholders by way of a rights offer at a ratio of 24.6403 rights offer shares for
every 100 AngloGold Ashanti shares held on the record date of 6 July 2008. The Final terms of the rights offer
were announced on 23 May 2008 resulting in a total of 69,470,442 new rights offer shares being offered to
shareholders at a subscription price of R194.00 per share. On 7 July 2008, AngloGold Ashanti announced that the
rights offer closed on 4 July 2008 and that 68,105,143 shares had been subscribed for (98% of rights offered) which
shares were issued on 7 July 2008. Applications to acquire additional shares amounting to 400,468,713 shares (or
576.5%) had been received and the remaining 1,365,299 shares were issued on 11 July 2008. A total of R13.477bn
was raised.
Ashanti ordinary and E ordinary shareholders by way of a rights offer at a ratio of 24.6403 rights offer shares for
every 100 AngloGold Ashanti shares held on the record date of 6 July 2008. The Final terms of the rights offer
were announced on 23 May 2008 resulting in a total of 69,470,442 new rights offer shares being offered to
shareholders at a subscription price of R194.00 per share. On 7 July 2008, AngloGold Ashanti announced that the
rights offer closed on 4 July 2008 and that 68,105,143 shares had been subscribed for (98% of rights offered) which
shares were issued on 7 July 2008. Applications to acquire additional shares amounting to 400,468,713 shares (or
576.5%) had been received and the remaining 1,365,299 shares were issued on 11 July 2008. A total of R13.477bn
was raised.
On 29 July 2008, AngloGold Ashanti announced the resignation of Simon Thompson from the board, effective
28 July 2008.
28 July 2008.
23.
Dividend
The directors have today declared Interim Dividend No. 104 (Interim Dividend No. 102: 90) of 50 South African
cents per ordinary share for the six months ended 30 June 2008. In compliance with the requirements of Strate,
given the company's primary listing on the JSE Limited, the salient dates for payment of the dividend are as follows:
cents per ordinary share for the six months ended 30 June 2008. In compliance with the requirements of Strate,
given the company's primary listing on the JSE Limited, the salient dates for payment of the dividend are as follows:
To holders of ordinary shares and to holders of CHESS Depositary Interests (CDIs)
Each CDI represents one-fifth of an ordinary share
Each CDI represents one-fifth of an ordinary share
2008
Currency conversion date for UK pounds, Australian dollars and Ghanaian cedis
Thursday, 14 August
Last date to trade ordinary shares cum dividend
Friday, 15 August
Last date to register transfers of certificated securities cum dividend
Friday, 15 August
Ordinary shares trade ex dividend
Monday, 18 August
Record date
Friday, 22 August
Payment date
Friday, 29 August
On the payment date, dividends due to holders of certificated securities on the South African share
register will either be electronically transferred to shareholders' bank accounts or, in the absence of
suitable mandates, dividend cheques will be posted to such shareholders.
register will either be electronically transferred to shareholders' bank accounts or, in the absence of
suitable mandates, dividend cheques will be posted to such shareholders.
Dividends in respect of dematerialised shareholdings will be credited to shareholders' accounts with the
relevant CSDP or broker.
relevant CSDP or broker.
To comply with the further requirements of Strate, between Monday, 18 August 2008 and Friday,
22 August 2008, 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.
22 August 2008, 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
2008
Ex dividend on New York Stock Exchange
Wednesday, 20 August
Record date
Friday, 22 August
Approximate date for currency conversion
Friday, 29 August
Approximate payment date of dividend
Monday, 8 September
Assuming an exchange rate of R7.3605/$1, the dividend payable on an ADS is equivalent to 6.
7 US
cents. This compares with the final dividend of 6.6 US cents per ADS paid on 17 March 2008.
However, the actual rate of payment will depend on the exchange rate on the date for currency
conversion.
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
2008
Last date to trade and to register GhDSs cum dividend
Friday, 15 August
GhDSs trade ex dividend
Monday, 18 August
Record date
Friday, 22 August
Approximate payment date of dividend
Monday, 1 September
Assuming an exchange rate of R1/¢0.1561, the dividend payable per GhDS is equivalent to 0.78 cedis.
This compares with the final dividend of 0.065 cedis per Ghanaian Depositary Share (GhDS) paid on
10 March 2008. However, the actual rate of payment will depend on the exchange rate on the date for
currency conversion. In Ghana, the authorities have determined that dividends payable to residents on
the Ghana share register be subject to a final withholding tax at a rate of 10%, similar to the rate
applicable to dividend payments made by resident companies which is currently at 10%.
This compares with the final dividend of 0.065 cedis per Ghanaian Depositary Share (GhDS) paid on
10 March 2008. However, the actual rate of payment will depend on the exchange rate on the date for
currency conversion. In Ghana, the authorities have determined that dividends payable to residents on
the Ghana share register be subject to a final withholding tax at a rate of 10%, similar to the rate
applicable to dividend payments made by resident companies which is currently at 10%.
In addition, directors have today declared Interim Dividend No. E4 (Interim Dividend No E2: 45) of
25 South African cents per E ordinary share, payable to employees participating in the Bokamoso
ESOP and Izingwe Holdings (Proprietary) Limited. These dividends are payable on 29 August 2008.
By order of the Board
R P EDEY
M CUTIFANI
Chairman
Chief Executive Officer
30 July 2008
Segmental
reporting
for the quarter and six months ended 30 June 2008
Quarter
Quarter
Quarter
Six months
Six months
Quarter
Quarter
Quarter
Six months
Six months
ended
ended
ended
ended
ended
ended
ended
ended
ended
ended
Jun
Mar
Jun
Jun
Jun
Jun
Mar
Jun
Jun
Jun
2008
2008
2007
2008
2007
2008
2008
2007
2008
2007
Unaudited
Unaudited
Unaudited
Unaudited
Unaudited
Unaudited
Unaudited
Unaudited
Unaudited
Unaudited
Gold income
South Africa
South Africa
3,124
2,450
2,281
5,574
4,746
402
324
323
726
663
Argentina
29
316
252
345
518
4
41
36
45
72
Australia
92
727
483
819
1,036
14
96
68
110
145
Brazil
270
757
468
1,027
960
36
101
66
137
134
Ghana
1,241
835
567
2,077
1,117
159
110
80
269
156
Guinea
768
673
304
1,441
684
99
89
43
188
95
Mali
(241)
588
429
347
946
(29)
78
61
49
132
Namibia
17
84
88
101
182
2
11
12
14
25
Tanzania
1,426
445
163
1,872
349
181
59
23
240
49
USA
782
369
187
1,151
348
100
48
26
148
49
7,508
7,245
5,222
14,753
10,886
968
958
739
1,926
1,522
Gross (loss) profit adjusted for
the gain (loss) on unrealised non-
hedge derivatives and other
commodity contracts
the gain (loss) on unrealised non-
hedge derivatives and other
commodity contracts
South Africa
(3,045)
1,013
741
(2,032)
1,541
(381)
130
105
(251)
215
Argentina
(210)
62
97
(148)
202
(27)
8
14
(19)
28
Australia
(659)
168
212
(491)
444
(83)
23
30
(60)
62
Brazil
(482)
299
225
(182)
479
(60)
40
32
(20)
67
Ghana
(832)
90
87
(741)
149
(105)
12
12
(93)
21
Guinea
(203)
205
7
2
56
(25)
27
1
2
8
Mali
(696)
195
147
(500)
330
(87)
26
21
(62)
46
Namibia
(66)
22
26
(44)
55
(8)
3
4
(5)
8
Tanzania
(526)
(98)
81
(624)
68
(66)
(13)
11
(79)
9
USA
(300)
167
111
(133)
218
(37)
22
16
(15)
31
Other
110
(28)
(46)
79
(22)
14
(4)
(7)
10
(3)
(6,909)
2,095
1,688
(4,814)
3,520
(866)
274
239
(592)
492
Adjusted gross profit (loss)
normalised for accelerated
settlement of non-hedge
derivatives
South Africa
normalised for accelerated
settlement of non-hedge
derivatives
South Africa
838
1,013
741
1,851
1,541
108
130
105
238
215
Argentina
(54)
62
97
8
202
(7)
8
14
1
28
Australia
78
168
212
246
444
10
23
30
33
62
Brazil
299
299
225
598
479
39
40
32
79
67
Ghana
(6)
90
87
84
149
(1)
12
12
11
21
Guinea
176
205
7
381
56
23
27
1
50
8
Mali
174
195
147
370
330
22
26
21
48
46
Namibia
1
22
26
23
55
-
3
4
3
8
Tanzania
(36)
(98)
81
(133)
68
(4)
(13)
11
(17)
9
USA
146
167
111
313
218
19
22
16
41
31
Other
110
(28)
(46)
79
(22)
14
(4)
(7)
10
(3)
1,726
2,095
1,688
3,821
3,520
223
274
239
497
492
Rounding of figures may result in computational discrepancies.
Based on risks and returns the directors consider that the primary reporting format is by business segment. The directors consider that there is only one business segment
being mining, extraction and production of gold. Therefore the disclosures for the primary segment have already been given in the abbreviated financial statements. The
secondary reporting format is by geographical analysis by origin.
US Dollar million
SA Rand million
Segmental
reporting (continued)
Quarter
Quarter
Quarter
Six months
Six months
Quarter
Quarter
Quarter
Six months
Six months
ended
ended
ended
ended
ended
ended
ended
ended
ended
ended
Jun
Mar
Jun
Jun
Jun
Jun
Mar
Jun
Jun
Jun
2008
2008
2007
2008
2007
2008
2008
2007
2008
2007
Unaudited
Unaudited
Unaudited
Unaudited
Unaudited
Unaudited
Unaudited
Unaudited
Unaudited
Unaudited
Gold production
South Africa
South Africa
16,867
15,498
18,083
32,365
35,708
542
498
581
1,041
1,148
Argentina
842
856
1,569
1,698
3,172
27
28
50
55
102
Australia
3,529
3,707
4,631
7,236
9,236
114
119
149
233
297
Brazil
3,224
2,892
3,006
6,116
5,808
104
93
97
197
187
Ghana
3,888
4,189
4,198
8,077
8,173
125
135
135
260
263
Guinea
2,682
2,901
1,992
5,583
4,262
86
93
64
179
137
Mali
3,291
2,923
3,164
6,214
6,518
106
94
102
200
210
Namibia
503
469
621
972
1,235
16
15
20
31
40
Tanzania
2,309
1,984
2,553
4,293
4,965
74
64
82
138
160
USA
1,849
1,791
2,142
3,639
4,122
59
58
69
117
133
38,984
37,210
41,958
76,194
83,198
1,253
1,196
1,349
2,450
2,675
Quarter
Quarter
Quarter
Six months
Six months
Quarter
Quarter
Quarter
Six months
Six months
ended
ended
ended
ended
ended
ended
ended
ended
ended
ended
Jun
Mar
Jun
Jun
Jun
Jun
Mar
Jun
Jun
Jun
2008
2008
2007
2008
2007
2008
2008
2007
2008
2007
Unaudited
Unaudited
Unaudited
Unaudited
Unaudited
Unaudited
Unaudited
Unaudited
Unaudited
Unaudited
Capital expenditure
South Africa
South Africa
654
525
540
1,178
1,013
84
70
76
154
142
Argentina
31
37
30
68
55
4
5
4
9
8
Australia
824
803
543
1,627
885
106
107
77
213
124
Brazil
230
178
268
408
532
30
24
38
53
75
Ghana
259
196
232
454
423
33
26
33
59
59
Guinea
49
44
38
92
52
6
6
5
12
7
Mali
10
13
13
23
25
1
2
2
3
3
Namibia
32
14
6
47
8
4
2
1
6
1
Tanzania
200
25
34
225
59
26
3
5
29
8
USA
50
90
26
140
74
6
12
4
18
10
Other
18
5
250
24
270
4
1
34
5
39
2,357
1,930
1,979
4,287
3,396
304
257
279
561
476
As at
As at
As at
As at
As at
As at
As at
As at
Jun
Mar
Dec
Jun
Jun
Mar
Dec
Jun
2008
2008
2007
2007
2008
2008
2007
2007
Unaudited
Unaudited
Audited
Unaudited
Unaudited
Unaudited
Audited
Unaudited
Total assets
South Africa
South Africa
17,488
16,149
15,616
15,069
2,233
1,995
2,293
2,148
Argentina
1,744
1,995
1,659
1,681
223
246
244
240
Australia
12,632
11,404
8,705
7,611
1,613
1,409
1,278
1,085
Brazil
6,271
5,818
4,826
4,369
801
719
709
623
Ghana
15,550
15,964
13,301
13,018
1,985
1,972
1,953
1,855
Guinea
2,570
2,634
2,127
1,934
328
325
312
276
Mali
2,967
3,072
2,399
2,277
379
380
352
324
Namibia
599
555
536
479
76
69
79
68
Tanzania
11,643
11,519
9,654
9,645
1,486
1,423
1,418
1,375
USA
4,351
4,284
3,608
3,551
555
529
530
506
Other
4,409
5,359
4,450
4,640
562
664
652
661
80,224
78,752
66,881
64,274
10,241
9,731
9,820
9,161
Rounding of figures may result in computational discrepancies.
SA Rand million
US Dollar million
SA Rand million
US Dollar million
oz (000)
kg
Non-GAAP
disclosure
A
Jun
Mar
Jun
Jun
Jun
Jun
Mar
Jun
Jun
Jun
2008
2008
2007
2008
2007
2008
2008
2007
2008
2007
Unaudited Unaudited Unaudited
Unaudited Unaudited Unaudited Unaudited Unaudited
Unaudited Unaudited
Headline (loss) earnings (note 9)
(1,354)
(3,880)
1,066
(5,234)
930
(237)
(151)
109
(388)
130
(Gain) loss on unrealised non-hedge derivatives and
other commodity contracts (note 4)
other commodity contracts (note 4)
(7,696)
5,454
(242)
(2,242)
812
(901)
351
8
(551)
114
Deferred tax on unrealised non-hedge derivatives and
other commodity contracts (note 7)
other commodity contracts (note 7)
1,545
(590)
(22)
954
(104)
194
(72)
(4)
122
(15)
Fair value adjustment on option component of convertible
bond
bond
(12)
(170)
(223)
(183)
(358)
(2)
(23)
(32)
(24)
(51)
Headline (loss) earnings adjusted for the gain (loss) on
unrealised non-hedge derivatives, other commodity
contracts and fair value adjustments on convertible
bond
unrealised non-hedge derivatives, other commodity
contracts and fair value adjustments on convertible
bond
(1)
(7,518)
813
578
(6,705)
1,280
(946)
105
82
(842)
179
Cents per share
(2)
Headline (loss) earnings adjusted for the gain (loss) on
unrealised non-hedge derivatives, other commodity
contracts and fair value adjustments on convertible
bond
unrealised non-hedge derivatives, other commodity
contracts and fair value adjustments on convertible
bond
(1)
(2,661)
288
206
(2,374)
455
(335)
37
29
(298)
64
B
Jun
Mar
Jun
Jun
Jun
Jun
Mar
Jun
Jun
Jun
2008
2008
2007
2008
2007
2008
2008
2007
2008
2007
Unaudited
Unaudited
Unaudited
Unaudited Unaudited
Unaudited
Unaudited
Unaudited
Unaudited
Unaudited
Reconciliation of gross profit (loss) to gross (loss) profit
adjusted for the gain (loss) on unrealised non-hedge
derivatives and other commodity contracts:
Gross profit (loss)
adjusted for the gain (loss) on unrealised non-hedge
derivatives and other commodity contracts:
Gross profit (loss)
787
(3,359)
1,930
(2,573)
2,708
36
(77)
231
(41)
378
(Gain) loss on unrealised non-hedge derivatives and
other commodity contracts (note 4)
other commodity contracts (note 4)
(7,696)
5,454
(242)
(2,242)
812
(901)
351
8
(551)
114
Gross (loss) profit adjusted for the gain (loss) on unrealised
non-hedge derivatives and other commodity contracts
non-hedge derivatives and other commodity contracts
(6,909)
2,095
1,688
(4,814)
3,520
(866)
274
239
(592)
492
Loss on accelerated settlement of non-hedge derivatives
(note 4)
(note 4)
8,635
-
-
8,635
-
1,089
-
-
1,089
-
Adjusted gross profit normalised for accelerated settlement
of non-hedge derivatives
of non-hedge derivatives
1,726
2,095
1,688
3,821
3,520
223
274
239
497
492
Rounding of figures may result in computational discrepancies.
Six months ended
Headline (loss) earnings adjusted for the effect of unrealised non-hedge derivatives, other commodity contracts and fair value adjustments on convertible bond, is intended to
illustrate earnings after adjusting for:
illustrate earnings after adjusting for:
Gross (loss) profit adjusted for the gain (loss) on unrealised non-hedge derivatives and other commodity contracts
Six months ended
Quarter ended
- In addition, during the June 2008 quarter the hedge book was reduced and contracts to the value of $1,1bn was early settled. Following the sale of the investment in Nufcor
International Ltd. (NIL) uranium contracts of 1m pounds were cancelled. The combined impact on earnings after taxation amounted to $996m;
International Ltd. (NIL) uranium contracts of 1m pounds were cancelled. The combined impact on earnings after taxation amounted to $996m;
SA Rand million
Headline (loss) earnings adjusted for the gain (loss) on unrealised non-hedge derivatives, other commodity contracts and fair value adjustments on convertible bond
Quarter ended
Quarter ended
Six months ended
Six months ended
- The unrealised fair value change on the onerous uranium contracts.
Quarter ended
- Open positions: The change in fair value from the previous reporting date or date of recognition (if later) through to the current reporting date; and
- Settled positions: The change in fair value from the previous reporting date or date of recognition (if later) through to the date of settlement.
- Settled positions: The change in fair value from the previous reporting date or date of recognition (if later) through to the date of settlement.
SA Rand million
(1)
(Gain) loss on non-hedge derivatives and other commodity contracts in the income statement comprise the change in fair value of all non-hedge derivatives and other commodity
contracts as follows:
US Dollar million
- Investment in hedge restructure transaction: During the hedge restructure in December 2004 and March 2005 quarters, $83m and $69m in cash was injected respectively into
the hedge book in these quarters to increase the value of long-dated contracts. The entire investment in long-dated derivatives (certain of which have now matured), for the
purposes of the adjustment to earnings, will only be taken into account when the realised portion of long-dated non-hedge derivatives are settled, and not when the short-term
contracts were settled;
the hedge book in these quarters to increase the value of long-dated contracts. The entire investment in long-dated derivatives (certain of which have now matured), for the
purposes of the adjustment to earnings, will only be taken into account when the realised portion of long-dated non-hedge derivatives are settled, and not when the short-term
contracts were settled;
- The unrealised fair value change on the option component of the convertible bond; and
US Dollar million
From time to time AngloGold Ashanti may publicly disclose certain "Non-GAAP" financial measures in the course of its financial presentations, earnings releases, earnings
conference calls and otherwise.
conference calls and otherwise.
- The unrealised fair value change in contracts that are still open at the reporting date, as well as, the unwinding of the historic marked-to-market value of the position settled in
the period;
the period;
The group utilises certain Non-GAAP performance measures and ratios in managing its 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 for, the reported
operating results or cash flow from operations 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 other companies use.
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 for, the reported
operating results or cash flow from operations 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 other companies use.
(2)
Calculated on the basic weighted average number of ordinary shares.
Jun
Mar
Jun
Jun
Jun
Jun
Mar
Jun
Jun
Jun
2008
2008
2007
2008
2007
2008
2008
2007
2008
2007
Unaudited
Unaudited Unaudited Unaudited Unaudited Unaudited
Unaudited Unaudited Unaudited Unaudited
C
Price received
Gold income (note 2)
7,508
7,245
5,222
14,753
10,886
968
958
739
1,926
1,522
Adjusted for minority interests
(339)
(263)
(226)
(603)
(463)
(43)
(35)
(32)
(78)
(65)
7,169
6,982
4,996
14,150
10,423
925
923
707
1,848
1,457
(Loss) gain on realised non-hedge derivatives (note 4)
(249)
(158)
598
(407)
990
(32)
(22)
84
(54)
139
Loss on accelerated settlement of non-hedge derivatives
(note 4)
(note 4)
(8,635)
-
-
(8,635)
-
(1,089)
-
-
(1,089)
-
Attributable gold income including realised non-hedge
derivatives
derivatives
(1,715)
6,824
5,594
5,108
11,413
(196)
901
791
705
1,596
Attributable gold sold - kg / - oz (000)
38,704
37,098
40,661
75,802
82,219
1,244
1,193
1,307
2,437
2,643
Revenue price per unit - R/kg / - $/oz
(44,303)
183,945
137,579
67,390
138,807
(157)
755
605
289
604
Attributable gold income including realised non-hedge
derivatives as above
derivatives as above
(1,715)
6,824
5,594
5,108
11,413
(196)
901
791
705
1,596
Loss on accelerated settlement of non-hedge derivatives
(note 4)
(note 4)
8,635
-
-
8,635
-
1,089
-
-
1,089
-
Attributable gold income including realised non-hedge
derivatives normalised for accelerated settlement of
non-hedge derivatives
derivatives normalised for accelerated settlement of
non-hedge derivatives
6,920
6,824
5,594
13,743
11,413
893
901
791
1,793
1,596
Attributable gold sold - kg / - oz (000)
38,704
37,098
40,661
75,802
82,219
1,244
1,193
1,307
2,437
2,643
Revenue price per unit normalised for accelerated settlement
of non-hedge derivatives - R/kg / - $/oz
of non-hedge derivatives - R/kg / - $/oz
178,796
183,945
137,579
181,303
138,807
717
755
605
736
604
D
Total costs
Total cash costs (note 3)
4,424
3,983
3,305
8,407
6,537
570
528
468
1,098
915
Adjusted for minority interests and non-gold producing
companies
companies
(206)
(96)
(127)
(298)
(180)
(26)
(13)
(18)
(39)
(25)
Total cash costs adjusted for minority interests and non-
gold producing companies
gold producing companies
4,218
3,887
3,178
8,109
6,357
544
515
450
1,060
890
Retrenchment costs (note 3)
15
26
9
42
16
2
3
1
5
2
Rehabilitation and other non-cash costs (note 3)
15
106
19
120
39
2
14
3
15
5
Amortisation of tangible assets (note 3)
1,184
1,082
1,009
2,266
1,957
153
144
143
296
274
Amortisation of intangible assets (note 3)
4
4
3
8
7
-
-
-
1
1
Adjusted for minority interests and non-gold producing
companies
companies
(52)
(37)
(33)
(88)
(67)
(7)
(5)
(5)
(11)
(9)
Total production costs adjusted for minority interests
and non-gold producing companies
and non-gold producing companies
5,384
5,068
4,185
10,457
8,309
694
670
592
1,366
1,163
Gold produced - kg / - oz (000)
38,984
37,210
41,958
76,194
83,198
1,253
1,196
1,349
2,450
2,675
Total cash cost per unit - R/kg / -$/oz
108,195
104,461
75,724
106,429
76,406
434
430
333
433
333
Total production cost per unit - R/kg / -$/oz
138,115
136,200
99,734
137,238
99,872
554
561
439
558
435
E
EBITDA
Operating (loss) profit
467
(3,758)
1,527
(3,291)
1,866
(4)
(130)
174
(134)
260
Amortisation of tangible assets (note 3)
1,184
1,082
1,009
2,266
1,957
153
144
143
296
274
Amortisation of intangible assets (note 3)
4
4
3
8
7
-
-
-
1
1
Impairment of tangible assets (note 6)
1
3
-
4
1
-
-
-
-
-
(Gain) loss on unrealised non-hedge derivatives and other
commodity contracts (note 4)
commodity contracts (note 4)
(7,696)
5,454
(242)
(2,242)
812
(901)
351
8
(551)
114
Loss on realised other commodity contracts (note 4)
128
-
-
128
-
16
-
-
16
-
Loss on accelerated settlement of non-hedge derivatives
(note 4)
(note 4)
8,635
-
-
8,635
-
1,089
-
-
1,089
-
Share of associates' EBITDA
2
1
(2)
3
(4)
-
-
-
-
(1)
Discontinued operations EBITDA (note 8)
(12)
(5)
(2)
(17)
(6)
(2)
(1)
(1)
(2)
(1)
Profit on disposal and abandonment of assets (note 6)
(272)
(85)
(92)
(357)
(86)
(35)
(11)
(13)
(46)
(12)
Profit on disposal of investment in subsidiary (note 6)
(29)
-
-
(29)
-
(4)
-
-
(4)
-
2,411
2,698
2,201
5,107
4,547
311
354
311
665
635
Rounding of figures may result in computational discrepancies.
SA Rand million / Metric
Quarter ended
Quarter ended
Six months ended
Six months ended
US Dollar million / Imperial
Jun
Mar
Jun
Jun
Jun
Jun
Mar
Jun
Jun
Jun
2008
2008
2007
2008
2007
2008
2008
2007
2008
2007
Unaudited
Unaudited Unaudited Unaudited Unaudited
Unaudited Unaudited Unaudited Unaudited Unaudited
F
Interest cover
EBITDA (note E)
2,411
2,698
2,201
5,107
4,547
311
354
311
665
635
Finance costs
216
265
220
481
419
28
35
31
63
59
Capitalised finance costs
64
45
12
109
24
8
6
2
14
3
280
310
232
590
443
36
41
33
77
62
Interest cover - times
9
9
9
9
10
9
9
9
9
10
G
Free cash flow
Net cash inflow from operating activities
733
1,432
1,128
2,165
2,878
91
189
160
280
400
Stay-in-business capital expenditure
(1,123)
(852)
(884)
(1,976)
(1,669)
(145)
(113)
(125)
(259)
(234)
(390)
580
244
189
1,209
(54)
76
35
21
166
As at
As at
As at
As at
As at
As at
As at
As at
Jun
Mar
Dec
Jun
Jun
Mar
Dec
Jun
2008
2008
2007
2007
2008
2008
2007
2007
Unaudited
Unaudited Unaudited Unaudited Unaudited Unaudited
Unaudited Unaudited
H
Net asset value - cents per share
Total equity
16,558
17,237
16,633
22,678
2,114
2,130
2,442
3,232
Number of ordinary shares in issue - million (note 10)
282
282
282
281
282
282
282
281
Net asset value - cents per share
5,873
6,116
5,907
8,072
750
756
867
1,150
Total equity
16,558
17,237
16,633
22,678
2,114
2,130
2,442
3,232
Intangible assets
(3,649)
(3,657)
(2,996)
(3,041)
(466)
(452)
(440)
(433)
12,909
13,580
13,637
19,637
1,648
1,678
2,002
2,799
Number of ordinary shares in issue - million (note 10)
282
282
282
281
282
282
282
281
Net tangible asset value - cents per share
4,579
4,818
4,843
6,989
585
595
711
996
I
Net debt
Borrowings - long-term portion
7,387
5,728
10,441
9,293
943
708
1,533
1,325
Borrowings - short-term portion
10,103
10,157
2,309
2,056
1,290
1,255
339
293
Total borrowings
17,490
15,885
12,750
11,349
2,233
1,963
1,872
1,618
Cash and cash equivalents
(3,914)
(4,167)
(3,381)
(2,792)
(500)
(515)
(496)
(398)
Net debt
13,576
11,718
9,369
8,557
1,733
1,448
1,376
1,220
Rounding of figures may result in computational discrepancies.
Quarter ended
SA Rand million
US Dollar million
Six months ended
US Dollar million
SA Rand million
Six months ended
Quarter ended
Key
operating results
PER REGION & OPERATION
Quarter
Quarter
Quarter
Six months
Quarter
Quarter
Quarter
Six months
ended
ended
ended
ended
ended
ended
ended
ended
June
March
June
June
June
March
June
June
2008
2008
2007
2008
2008
2008
2007
2008
SA Rand / US Dollar
SOUTH AFRICA
654
525
540
1,178
84
70
76
154
Vaal River
Great Noligwa
Great Noligwa
58
40
59
98
7
5
8
13
Kopanang
96
84
84
180
12
11
12
24
Moab Khotsong
164
143
143
307
21
19
20
40
Tau Lekoa
41
26
23
67
5
3
3
9
Surface Operations
2
-
2
2
-
-
-
-
West Wits
Mponeng
Mponeng
150
120
105
270
19
16
15
35
Savuka
24
21
13
44
3
3
2
6
TauTona
120
91
111
211
15
12
16
28
ARGENTINA
31
37
30
68
4
5
4
9
Cerro Vanguardia - Attributable 92.50%
28
34
28
63
4
5
4
8
Minorities and exploration
3
3
2
5
-
-
-
1
AUSTRALIA
824
803
543
1,627
106
107
77
213
Sunrise Dam
49
31
45
79
6
4
6
10
Boddington
774
772
493
1,546
100
103
69
202
Exploration
1
-
5
2
-
-
2
1
BRAZIL
230
178
268
408
30
24
38
53
AngloGold Ashanti Brasil Mineração
166
123
217
289
21
16
31
38
Serra Grande - Attributable 50%
31
27
24
58
4
4
3
8
Minorities, exploration and other
33
28
27
61
5
4
4
7
GHANA
259
196
232
454
33
26
33
59
Iduapriem
1
104
58
28
161
13
8
4
21
Obuasi
155
138
198
293
20
18
28
38
Minorities and exploration
-
-
6
-
-
-
1
-
GUINEA
49
44
38
92
6
6
5
12
Siguiri - Attributable 85%
41
37
32
79
5
5
5
10
Minorities and exploration
8
7
6
13
1
1
-
2
MALI
10
13
13
23
1
2
2
3
Morila - Attributable 40%
2
1
1
3
-
-
-
-
Sadiola - Attributable 38%
3
6
6
9
-
1
1
1
Yatela - Attributable 40%
5
5
5
9
1
1
1
1
NAMIBIA
32
14
6
47
4
2
1
6
Navachab
32
14
6
47
4
2
1
6
TANZANIA
200
25
34
225
26
3
5
29
Geita
200
25
34
225
26
3
5
29
USA
50
90
26
140
6
12
4
18
Cripple Creek & Victor J.V.
50
90
26
140
6
12
4
18
OTHER
18
5
250
24
4
1
34
5
ANGLOGOLD ASHANTI
2,357
1,930
1,979
4,287
304
257
279
561
Rounding of figures may result in computational discrepancies.
Capital expenditure - Rm
Capital expenditure - $m
1
Prior to 1 September 2007 Iduapriem was reported on a 85% attributable basis.
Development
for the quarter ended 30 June 2008
Statistics are shown in metric units
Advanced
metres
Sampled
Ave. channel
(total)
metres
width (cm)
Ave. g/t
Ave. cm.g/t
Ave. kg/t
Ave. cm.kg/t
VAAL RIVER
Great Noligwa Mine
Vaal reef
Great Noligwa Mine
Vaal reef
1,531
112
115.8
49.72
5,757
3.15
359.38
Kopanang Mine
Vaal reef
Vaal reef
6,447
534
16.5
82.30
1,358
6.46
108.46
Tau Lekoa Mine
Ventersdorp Contact reef
Ventersdorp Contact reef
2,048
200
66.5
8.51
566
-
-
Moab Khotsong Mine
Vaal reef
Vaal reef
3,758
336
119.8
18.86
2,260
0.93
112.33
WEST WITS
Tau Tona Mine
Ventersdorp Contact reef
Tau Tona Mine
Ventersdorp Contact reef
79
-
-
-
-
-
-
Carbon Leader reef
2,195
54
14.7
219.25
3,223
2.67
37.94
Savuka Mine
Carbon Leader reef
Carbon Leader reef
736
44
35.0
143.71
5,030
-
-
Mponeng Mine
Ventersdorp Contact reef
Ventersdorp Contact reef
4,689
1,044
83.3
31.60
2,632
-
-
AUSTRALIA
Sunrise Dam
Sunrise Dam
1,112
1,112
-
4.56
-
-
-
BRAZIL
AngloGold Ashanti Mineração
Mina de Cuiabá
AngloGold Ashanti Mineração
Mina de Cuiabá
1,264
363
273.7
2.78
-
-
-
Córrego do Sitio
700
241
-
3.71
-
-
-
Lamego
1,067
42
60.0
2.76
-
-
-
Serra Grande
Mina III
Mina III
1,097
128
100.0
5.23
-
-
-
Mina Nova
117
-
-
-
-
-
-
GHANA
Obuasi
Obuasi
4,743
2,590
420 *
7.77
-
-
-
Statistics are shown in imperial units
Advanced
feet
Sampled
Ave. channel
(total)
feet
width (inches)
Ave. oz/t
Ave. ft.oz/t
Ave. lb/t
Ave. ft.lb/t
VAAL RIVER
Great Noligwa Mine
Vaal reef
Great Noligwa Mine
Vaal reef
5,024
367
45.6
1.45
5.51
6.30
23.94
Kopanang Mine
Vaal reef
Vaal reef
21,152
1,752
6.5
2.40
1.30
12.92
6.99
Tau Lekoa Mine
Ventersdorp Contact reef
Ventersdorp Contact reef
6,719
656
26.2
0.25
0.54
-
-
Moab Khotsong Mine
Vaal reef
Vaal reef
12,329
1,102
47.2
0.55
2.16
1.86
7.31
WEST WITS
Tau Tona Mine
Ventersdorp Contact reef
Tau Tona Mine
Ventersdorp Contact reef
259
-
-
-
-
-
-
Carbon Leader reef
7,201
177
5.8
6.39
3.08
5.34
2.58
Savuka Mine
Carbon Leader reef
Carbon Leader reef
2,415
144
13.8
4.19
4.81
-
-
Mponeng Mine
Ventersdorp Contact reef
Ventersdorp Contact reef
15,384
3,425
32.8
0.92
2.52
-
-
AUSTRALIA
Sunrise Dam
Sunrise Dam
3,648
3,648
-
0.13
-
-
-
BRAZIL
AngloGold Ashanti Mineração
Mina de Cuiabá
AngloGold Ashanti Mineração
Mina de Cuiabá
4,147
1,191
107.7
0.08
-
-
-
Córrego do Sitio
2,296
791
-
0.11
-
-
-
Lamego
3,500
138
23.6
0.08
-
-
-
Serra Grande
Mina III
Mina III
3,599
420
39.4
0.15
-
-
-
Mina Nova
385
-
-
-
-
-
-
GHANA
Obuasi
Obuasi
15,561
8,496
169.3 *
0.23
-
-
-
* Average ore body width.
Sampled
gold
uranium
Development values represent actual results of sampling, no allowances having been made for adjustments necessary in estimating ore reserves.
Sampled
gold
uranium
Key
operating results
PER REGION & OPERATION
Quarter
Quarter
Quarter
Six months
Quarter
Quarter
Quarter
Six months
ended
ended
ended
ended
ended
ended
ended
ended
June
March
June
June
June
March
June
June
2008
2008
2007
2008
2008
2008
2007
2008
Metric
SOUTH AFRICA
16,867
15,498
18,083
32,365
Vaal River
Great Noligwa
Great Noligwa
7.60
8.56
7.67
8.07
2,997
3,326
3,876
6,323
Kopanang
7.10
6.94
6.48
7.02
2,997
2,794
3,156
5,790
Moab Khotsong
9.05
10.34
6.68
9.61
881
764
392
1,644
Tau Lekoa
3.33
4.01
3.19
3.64
1,073
1,093
1,223
2,166
Surface Operations
0.30
0.36
0.52
0.33
573
670
1,030
1,243
West Wits
Mponeng
Mponeng
10.50
9.94
9.65
10.24
4,974
4,093
4,778
9,067
Savuka
6.36
5.96
6.81
6.17
563
448
552
1,010
TauTona
1
9.18
8.70
9.39
8.96
2,811
2,311
3,075
5,122
ARGENTINA
842
856
1,569
1,698
Cerro Vanguardia - Attributable 92.50%
4.06
3.82
6.61
3.93
842
856
1,569
1,698
AUSTRALIA
3,529
3,707
4,631
7,236
Sunrise Dam
3
3.75
4.10
4.86
3.92
3,529
3,707
4,631
7,236
BRAZIL
3,224
2,892
3,006
6,116
AngloGold Ashanti Brasil Mineração
1
7.72
6.77
6.80
7.24
2,530
2,251
2,264
4,781
Serra Grande
1
- Attributable 50%
7.47
7.19
7.19
7.33
693
641
742
1,334
GHANA
3,888
4,189
4,198
8,077
Iduapriem
2
1.61
1.81
1.78
1.71
1,423
1,471
1,347
2,894
Obuasi
1
4.15
4.19
4.16
4.17
2,465
2,718
2,851
5,183
GUINEA
2,682
2,901
1,992
5,583
Siguiri
3
- Attributable 85%
1.35
1.32
1.01
1.33
2,682
2,901
1,992
5,583
MALI
3,291
2,923
3,164
6,214
Morila - Attributable 40%
3.25
3.12
2.57
3.19
1,415
1,257
1,080
2,672
Sadiola - Attributable 38%
3.55
3.16
2.63
3.37
1,411
1,135
1,048
2,546
Yatela
4
- Attributable 40%
3.48
2.17
5.14
2.80
465
532
1,036
997
NAMIBIA
503
469
621
972
Navachab
1.46
1.31
1.55
1.38
503
469
621
972
TANZANIA
2,309
1,984
2,553
4,293
Geita
2.24
1.66
2.21
1.93
2,309
1,984
2,553
4,293
USA
1,849
1,791
2,142
3,639
Cripple Creek & Victor J.V.
4
0.46
0.54
0.50
0.50
1,849
1,791
2,142
3,639
ANGLOGOLD ASHANTI
38,984
37,210
41,958
76,194
Underground Operations
7.08
6.95
6.70
7.02
21,444
20,164
22,817
41,608
Surface and Dump Reclamation
0.38
0.47
0.53
0.42
1,100
1,318
1,680
2,418
Open-pit Operations
2.25
2.09
2.29
2.17
13,879
13,240
14,033
27,118
Heap Leach Operations
5
0.64
0.67
0.82
0.65
2,561
2,488
3,428
5,050
38,984
37,210
41,958
76,194
4
The yield of Yatela and the Cripple Creek & Victor Joint Venture
reflects gold placed/tonnes placed.
Rounding of figures may result in computational discrepancies.
1
The yield of TauTona, AngloGold Ashanti Brasil Mineração, Serra Grande and Obuasi represents underground
operations.
3
The yield of Sunrise Dam and Siguiri represents open-pit operations.
5
The yield is calculated on gold placed into leach pad inventory /
tonnes placed on to leach pad.
Yield - g/t
Gold produced - kg
2
Prior to 1 September 2007 Iduapriem was reported on a 85% attributable basis.
Key
operating results
PER REGION & OPERATION
Quarter
Quarter
Quarter
Six months
Quarter
Quarter
Quarter
Six months
ended
ended
ended
ended
ended
ended
ended
ended
June
March
June
June
June
March
June
June
2008
2008
2007
2008
2008
2008
2007
2008
Metric
SOUTH AFRICA
210
192
229
201
16,661
14,637
17,835
31,297
Vaal River
Great Noligwa
Great Noligwa
152
168
190
160
2,994
3,151
3,836
6,145
Kopanang
201
185
208
193
2,991
2,639
3,106
5,630
Moab Khotsong
161
148
110
155
887
709
393
1,596
Tau Lekoa
125
126
148
125
1,070
1,025
1,215
2,096
Surface Operations
847
1,012
1,518
929
567
645
1,025
1,212
West Wits
Mponeng
Mponeng
310
259
316
285
4,858
3,854
4,702
8,713
Savuka
174
146
172
160
555
423
545
977
TauTona
242
185
244
212
2,739
2,190
3,012
4,929
ARGENTINA
390
417
782
403
858
1,457
1,533
2,316
Cerro Vanguardia - Attributable 92.50%
390
417
782
403
858
1,457
1,533
2,316
AUSTRALIA
2,983
2,878
3,958
2,928
3,698
3,583
4,227
7,281
Sunrise Dam
2,983
2,878
4,356
2,928
3,698
3,583
4,227
7,281
BRAZIL
600
537
600
569
3,189
3,053
2,898
6,241
AngloGold Ashanti Brasil Mineração
571
504
541
537
2,519
2,432
2,146
4,951
Serra Grande - Attributable 50%
738
700
898
719
670
621
752
1,291
GHANA
234
249
234
241
3,923
4,128
4,089
8,051
Iduapriem
1
550
568
614
559
1,471
1,459
1,308
2,930
Obuasi
175
191
181
183
2,452
2,669
2,781
5,121
GUINEA
659
687
474
673
2,482
2,885
1,944
5,367
Siguiri - Attributable 85%
659
687
474
673
2,482
2,885
1,944
5,367
MALI
852
752
857
802
3,412
3,208
3,139
6,621
Morila - Attributable 40%
899
823
714
862
1,542
1,283
1,057
2,825
Sadiola - Attributable 38%
988
756
745
869
1,412
1,337
1,086
2,749
Yatela - Attributable 40%
540
620
1,335
580
458
588
996
1,046
NAMIBIA
365
361
621
363
506
461
641
967
Navachab
365
361
621
363
506
461
641
967
TANZANIA
386
317
433
351
2,133
1,860
2,340
3,993
Geita
386
317
433
351
2,133
1,860
2,340
3,993
USA
1,746
1,750
2,511
1,748
1,842
1,825
2,015
3,667
Cripple Creek & Victor J.V.
1,746
1,750
2,511
1,748
1,842
1,825
2,015
3,667
ANGLOGOLD ASHANTI
320
302
339
311
38,704
37,098
40,661
75,802
Rounding of figures may result in computational discrepancies.
Productivity per employee - g
Gold sold - kg
1
Prior to 1 September 2007 Iduapriem was reported on a 85% attributable basis.
Key
operating results
PER REGION & OPERATION
Quarter
Quarter
Quarter
Six months
Quarter
Quarter
Quarter
Six months
ended
ended
ended
ended
ended
ended
ended
ended
June
March
June
June
June
March
June
June
2008
2008
2007
2008
2008
2008
2007
2008
SA Rand / Metric
SOUTH AFRICA
87,459
88,549
71,551
87,981
116,881
116,313
95,830
116,609
Vaal River
Great Noligwa
Great Noligwa
107,178
96,801
72,747
101,719
130,865
118,554
96,266
124,388
Kopanang
78,460
85,530
66,677
81,871
113,927
128,151
85,412
120,790
Moab Khotsong
127,206
141,898
157,986
134,030
185,103
172,476
248,698
179,238
Tau Lekoa
138,069
128,576
106,673
133,278
165,364
158,512
142,841
161,906
Surface Operations
136,341
85,350
67,662
108,860
144,314
93,904
74,591
117,146
West Wits
Mponeng
Mponeng
56,689
61,113
56,082
58,686
76,840
82,927
74,592
79,588
Savuka
109,769
88,349
97,989
100,278
152,790
123,374
119,954
139,756
TauTona
84,434
93,118
70,629
88,352
123,478
124,319
103,544
123,857
ARGENTINA
218,871
134,008
58,958
176,096
245,335
168,121
86,380
206,416
Cerro Vanguardia - Attributable 92.50%
217,167
132,332
57,982
174,406
243,507
166,287
85,258
204,585
AUSTRALIA
143,311
116,906
69,059
129,783
170,135
141,681
89,157
155,557
Sunrise Dam
137,877
111,183
67,115
124,201
164,025
135,374
86,776
149,346
BRAZIL
85,205
81,916
62,192
83,650
112,820
115,672
83,305
114,169
AngloGold Ashanti Brasil Mineração
80,564
76,600
56,661
78,698
109,484
113,174
78,469
111,221
Serra Grande - Attributable 50%
76,679
70,185
59,638
73,559
99,533
94,042
78,631
96,895
GHANA
135,916
114,744
91,197
124,936
175,637
161,133
120,089
168,115
Iduapriem
123,016
109,611
66,628
116,202
143,725
136,025
84,760
139,811
Obuasi
152,565
127,301
102,805
138,855
203,889
185,552
136,780
193,812
GUINEA
108,248
105,581
113,624
106,862
124,373
128,764
137,738
126,655
Siguiri - Attributable 85%
108,248
105,581
113,624
106,862
124,373
128,764
137,738
126,655
MALI
107,573
100,910
75,848
104,438
132,325
122,778
86,817
127,834
Morila - Attributable 40%
106,319
99,282
93,093
103,009
125,377
117,814
110,034
121,820
Sadiola - Attributable 38%
101,844
98,058
91,710
100,157
137,998
129,199
99,421
134,077
Yatela - Attributable 40%
142,633
125,581
52,961
133,529
149,633
135,250
60,858
141,954
NAMIBIA
149,421
118,198
79,443
134,355
161,796
142,749
95,850
152,605
Navachab
149,421
118,198
79,443
134,355
161,796
142,749
95,850
152,605
TANZANIA
157,611
174,653
76,486
165,485
207,991
232,677
110,139
219,397
Geita
157,611
174,653
76,486
165,485
207,991
232,677
110,139
219,397
USA
82,660
74,620
59,984
78,704
108,130
100,080
81,778
104,169
Cripple Creek & Victor J.V.
75,058
68,916
56,679
72,036
100,506
94,354
78,462
97,479
ANGLOGOLD ASHANTI
108,195
104,461
75,724
106,429
138,115
136,200
99,734
137,238
Rounding of figures may result in computational discrepancies.
Total cash costs - R/kg
Total production costs - R/kg
Key
operating results
PER REGION & OPERATION
Quarter
Quarter
Quarter
Six months
Quarter
Quarter
Quarter
Six months
ended
ended
ended
ended
ended
ended
ended
ended
June
March
June
June
June
March
June
June
2008
2008
2007
2008
2008
2008
2007
2008
SOUTH AFRICA
(3,045)
1,013
741
(2,032)
838
1,013
741
1,851
Vaal River
Great Noligwa
Great Noligwa
(682)
202
158
(480)
54
202
158
256
Kopanang
(579)
151
161
(428)
90
151
161
241
Moab Khotsong
(236)
11
(44)
(225)
(35)
11
(44)
(24)
Tau Lekoa
(264)
28
(6)
(236)
26
28
(6)
54
Surface Operations
(112)
54
64
(58)
22
54
64
76
West Wits
Mponeng
Mponeng
(608)
404
293
(205)
507
404
293
911
Savuka
(95)
27
10
(68)
16
27
10
44
TauTona
(467)
135
105
(332)
158
135
105
293
ARGENTINA
(210)
62
97
(148)
(54)
62
97
8
Cerro Vanguardia - Attributable 92.50%
(193)
59
91
(134)
(48)
59
91
11
Minorities and exploration
(17)
3
6
(14)
(6)
3
6
(3)
AUSTRALIA
(659)
168
212
(491)
78
168
212
246
Sunrise Dam
(659)
168
212
(491)
78
168
212
246
BRAZIL
(482)
299
225
(182)
299
299
225
598
AngloGold Ashanti Brasil Mineração
(464)
184
138
(279)
183
184
138
368
Serra Grande - Attributable 50%
(85)
55
45
(30)
49
55
45
104
Minorities and exploration
67
60
42
127
67
60
42
126
GHANA
(832)
90
87
(741)
(6)
90
87
84
Iduapriem
1
(262)
78
65
(183)
51
78
65
129
Obuasi
(572)
13
10
(560)
(59)
13
10
(47)
Minorities and exploration
2
(1)
12
2
2
(1)
12
2
GUINEA
(203)
205
7
2
176
205
7
381
Siguiri - Attributable 85%
(248)
156
1
(91)
132
156
1
288
Minorities and exploration
45
49
6
93
44
49
6
93
MALI
(696)
195
147
(500)
174
195
147
370
Morila - Attributable 40%
(243)
83
30
(161)
91
83
30
174
Sadiola - Attributable 38%
(345)
85
41
(260)
57
85
41
141
Yatela - Attributable 40%
(107)
28
76
(80)
26
28
76
54
NAMIBIA
(66)
22
26
(44)
1
22
26
23
Navachab
(66)
22
26
(44)
1
22
26
23
TANZANIA
(526)
(98)
81
(624)
(36)
(98)
81
(133)
Geita
(526)
(98)
81
(624)
(36)
(98)
81
(133)
USA
(300)
167
111
(133)
146
167
111
313
Cripple Creek & Victor J.V.
(300)
167
111
(133)
146
167
111
313
OTHER
110
(28)
(46)
79
110
(28)
(46)
79
ANGLOGOLD ASHANTI
(6,909)
2,095
1,688
(4,814)
1,726
2,095
1,688
3,821
Rounding of figures may result in computational discrepancies.
1
Prior to 1 September 2007 Iduapriem was reported on a 85% attributable basis.
SA Rand
Gross (loss) profit adjusted for the loss on unrealised non-hedge
derivatives and other commodity contracts - Rm
Adjusted gross profit (loss) normalised for accelerated settlement
of non-hedges derivative - Rm
Key
operating results
PER REGION & OPERATION
Quarter
Quarter
Quarter
Six months
Quarter
Quarter
Quarter
Six months
ended
ended
ended
ended
ended
ended
ended
ended
June
March
June
June
June
March
June
June
2008
2008
2007
2008
2008
2008
2007
2008
Imperial
SOUTH AFRICA
542
498
581
1,041
Vaal River
Great Noligwa
Great Noligwa
0.222
0.250
0.224
0.235
96
107
125
203
Kopanang
0.207
0.203
0.189
0.205
96
90
101
186
Moab Khotsong
0.264
0.302
0.195
0.280
28
25
13
53
Tau Lekoa
0.097
0.117
0.093
0.106
35
35
39
70
Surface Operations
0.009
0.011
0.015
0.010
18
22
33
40
West Wits
Mponeng
Mponeng
0.306
0.290
0.282
0.299
160
132
154
292
Savuka
0.185
0.174
0.199
0.180
18
14
18
32
TauTona
1
0.268
0.254
0.274
0.261
91
74
99
165
ARGENTINA
27
28
50
55
Cerro Vanguardia - Attributable 92.50%
0.118
0.111
0.193
0.115
27
28
50
55
AUSTRALIA
114
119
149
233
Sunrise Dam
3
0.109
0.120
0.142
0.114
114
119
149
233
BRAZIL
104
93
97
197
AngloGold Ashanti Brasil Mineração
1
0.225
0.198
0.198
0.211
82
72
73
154
Serra Grande
1
- Attributable 50%
0.218
0.210
0.210
0.214
22
21
24
43
GHANA
125
135
135
260
Iduapriem
2
0.047
0.053
0.052
0.050
46
47
43
93
Obuasi
1
0.121
0.122
0.121
0.122
79
87
92
167
GUINEA
86
93
64
179
Siguiri
3
- Attributable 85%
0.039
0.038
0.029
0.039
86
93
64
179
MALI
106
94
102
200
Morila - Attributable 40%
0.095
0.091
0.075
0.093
46
40
35
86
Sadiola - Attributable 38%
0.104
0.092
0.077
0.098
45
36
34
82
Yatela
4
- Attributable 40%
0.102
0.063
0.150
0.082
15
17
33
32
NAMIBIA
16
15
20
31
Navachab
0.042
0.038
0.045
0.040
16
15
20
31
TANZANIA
74
64
82
138
Geita
0.065
0.048
0.065
0.056
74
64
82
138
USA
59
58
69
117
Cripple Creek & Victor J.V.
4
0.013
0.016
0.015
0.014
59
58
69
117
ANGLOGOLD ASHANTI
1,253
1,196
1,349
2,450
Undergound Operations
0.206
0.203
0.195
0.205
690
648
734
1,338
Surface and Dump Reclamation
0.011
0.014
0.015
0.012
35
42
54
78
Open-pit Operations
0.066
0.061
0.067
0.063
446
426
451
872
Heap leach Operations
5
0.019
0.019
0.024
0.019
82
80
110
162
1,253
1,196
1,349
2,450
4
The yield of Yatela and the Cripple Creek & Victor Joint Venture
reflects gold placed/tonnes placed.
Rounding of figures may result in computational discrepancies.
Yield - oz/t
Gold produced - oz (000)
1
The yield of TauTona, AngloGold Ashanti Brasil Mineração, Serra Grande and Obuasi
represents underground
operations.
3
The yield of Sunrise Dam and Siguiri represents open-pit operations.
5
The yield is calculated on gold placed into leach pad inventory /
tonnes placed on to leach pad.
2
Prior to 1 September 2007 Iduapriem was reported on a 85% attributable basis.
Key
operating results
PER REGION & OPERATION
Quarter
Quarter
Quarter
Six months
Quarter
Quarter
Quarter
Six months
ended
ended
ended
ended
ended
ended
ended
ended
June
March
June
June
June
March
June
June
2008
2008
2007
2008
2008
2008
2007
2008
Imperial
SOUTH AFRICA
6.75
6.17
7.36
6.46
536
471
573
1,006
Vaal River
Great Noligwa
Great Noligwa
4.87
5.40
6.11
5.14
96
101
123
198
Kopanang
6.47
5.94
6.68
6.20
96
85
100
181
Moab Khotsong
5.18
4.77
3.52
4.98
29
23
13
51
Tau Lekoa
4.02
4.05
4.77
4.03
34
33
39
67
Surface Operations
27.22
32.54
48.80
29.85
18
21
33
39
West Wits
Mponeng
Mponeng
9.97
8.33
10.17
9.16
156
124
151
280
Savuka
5.58
4.69
5.54
5.15
18
14
18
31
TauTona
7.78
5.93
7.86
6.82
88
70
97
158
ARGENTINA
12.53
13.39
25.13
12.95
28
47
49
74
Cerro Vanguardia - Attributable 92.50%
12.53
13.39
25.13
12.95
28
47
49
74
AUSTRALIA
95.90
92.54
127.25
94.15
119
115
136
234
Sunrise Dam
95.90
92.54
140.06
94.15
119
115
136
234
BRAZIL
19.30
17.28
19.28
18.29
103
98
93
201
AngloGold Ashanti Brasil Mineração
18.35
16.21
17.38
17.28
81
78
69
159
Serra Grande - Attributable 50%
23.74
22.49
28.87
23.12
22
20
24
42
GHANA
7.51
8.01
7.52
7.76
126
133
131
259
Iduapriem
1
17.68
18.27
19.73
17.98
47
47
42
94
Obuasi
5.64
6.14
5.82
5.89
79
86
89
165
GUINEA
21.19
22.08
15.23
21.65
80
93
63
173
Siguiri - Attributable 85%
21.19
22.08
15.23
21.65
80
93
63
173
MALI
27.39
24.19
27.54
25.78
110
103
101
213
Morila - Attributable 40%
28.91
26.46
22.97
27.70
50
41
34
91
Sadiola - Attributable 38%
31.75
24.30
23.96
27.93
45
43
35
88
Yatela - Attributable 40%
17.37
19.94
42.92
18.65
15
19
32
34
NAMIBIA
11.75
11.59
19.96
11.67
16
15
21
31
Navachab
11.75
11.59
19.96
11.67
16
15
21
31
TANZANIA
12.42
10.20
13.92
11.29
69
60
75
128
Geita
12.42
10.20
13.92
11.29
69
60
75
128
USA
56.12
56.28
80.72
56.20
59
59
65
118
Cripple Creek & Victor J.V.
56.12
56.28
80.72
56.20
59
59
65
118
ANGLOGOLD ASHANTI
10.27
9.72
10.89
10.00
1,244
1,193
1,307
2,437
Rounding of figures may result in computational discrepancies.
Productivity per employee - oz
Gold sold - oz (000)
1
Prior to 1 September 2007 Iduapriem was reported on a 85% attributable basis.
Key
operating results
PER REGION & OPERATION
Quarter
Quarter
Quarter
Six months
Quarter
Quarter
Quarter
Six months
ended
ended
ended
ended
ended
ended
ended
ended
June
March
June
June
June
March
June
June
2008
2008
2007
2008
2008
2008
2007
2008
US Dollar / Imperial
SOUTH AFRICA
352
366
315
358
469
481
422
475
Vaal River
Great Noligwa
Great Noligwa
432
400
320
415
527
491
423
508
Kopanang
316
353
294
334
458
528
376
492
Moab Khotsong
512
578
695
543
744
702
1,094
724
Tau Lekoa
554
529
469
541
663
655
629
659
Surface Operations
547
357
298
445
579
393
328
479
West Wits
Mponeng
Mponeng
227
253
247
239
308
343
328
324
Savuka
440
367
431
408
613
511
528
568
TauTona
339
386
311
360
495
516
456
505
ARGENTINA
877
560
260
717
983
700
381
840
Cerro Vanguardia - Attributable 92.50%
870
553
256
710
976
692
376
833
AUSTRALIA
575
479
304
526
682
582
392
631
Sunrise Dam
553
455
295
503
658
556
382
606
BRAZIL
341
338
274
340
452
477
366
464
AngloGold Ashanti Brasil Mineração
323
316
249
320
439
467
345
452
Serra Grande - Attributable 50%
307
290
263
299
399
388
346
394
GHANA
568
494
401
530
729
687
528
707
Iduapriem
493
452
293
472
576
560
372
568
Obuasi
612
517
452
562
817
755
601
785
GUINEA
434
436
500
435
499
529
607
515
Siguiri - Attributable 85%
434
436
500
435
499
529
607
515
MALI
432
417
334
425
531
508
382
520
Morila - Attributable 40%
426
409
410
418
503
486
484
495
Sadiola - Attributable 38%
408
405
404
407
553
534
438
544
Yatela - Attributable 40%
573
522
232
546
601
563
267
581
NAMIBIA
599
490
349
546
649
591
421
621
Navachab
599
490
349
546
649
591
421
621
TANZANIA
630
717
337
670
832
954
485
889
Geita
630
717
337
670
832
954
485
889
USA
331
307
264
319
434
412
360
423
Cripple Creek & Victor J.V.
301
284
249
293
403
389
345
396
ANGLOGOLD ASHANTI
434
430
333
433
554
561
439
558
Rounding of figures may result in computational discrepancies.
Total cash costs - $/oz
Total production costs - $/oz
Key
operating results
PER REGION & OPERATION
Quarter
Quarter
Quarter
Six months
Quarter
Quarter
Quarter
Six months
ended
ended
ended
ended
ended
ended
ended
ended
June
March
June
June
June
March
June
June
2008
2008
2007
2008
2008
2008
2007
2008
SOUTH AFRICA
(381)
130
105
(251)
108
130
105
238
Vaal River
Great Noligwa
Great Noligwa
(86)
26
22
(60)
7
26
22
33
Kopanang
(73)
19
23
(53)
12
19
23
31
Moab Khotsong
(30)
1
(6)
(28)
(5)
1
(6)
(3)
Tau Lekoa
(33)
3
(1)
(30)
3
3
(1)
7
Surface Operations
(14)
7
9
(7)
3
7
9
10
West Wits
Mponeng
Mponeng
(75)
52
41
(23)
65
52
41
118
Savuka
(12)
3
1
(9)
2
3
1
6
TauTona (58)
17
15
(41)
20
17
15
38
ARGENTINA
(27)
8
14
(19)
(7)
8
14
1
Cerro Vanguardia - Attributable 92.50%
(24)
7
13
(17)
(6)
7
13
1
Minorities and exploration
(3)
1
1
(2)
(1)
1
1
-
AUSTRALIA
(83)
23
30
(60)
10
23
30
33
Sunrise Dam
(83)
23
30
(60)
10
23
30
33
BRAZIL
(60)
40
32
(20)
39
40
32
79
AngloGold Ashanti Brasil Mineração
(58)
25
19
(33)
24
25
19
48
Serra Grande - Attributable 50%
(11)
7
6
(3)
6
7
6
14
Minorities and exploration
9
8
7
16
9
8
7
17
GHANA
(105)
12
12
(93)
(1)
12
12
11
Iduapriem
1
(33)
10
9
(22)
7
10
9
17
Obuasi
(72)
2
1
(71)
(8)
2
1
(6)
Minorities and exploration
-
-
2
-
-
-
2
-
GUINEA
(25)
27
1
2
23
27
1
50
Siguiri - Attributable 85%
(31)
21
-
(10)
17
21
-
38
Minorities and exploration
6
6
1
12
6
6
1
12
MALI
(87)
26
21
(62)
22
26
21
48
Morila - Attributable 40%
(30)
11
4
(19)
12
11
4
23
Sadiola - Attributable 38%
(43)
11
6
(32)
7
11
6
18
Yatela - Attributable 40%
(14)
4
11
(10)
3
4
11
7
NAMIBIA
(8)
3
4
(5)
-
3
4
3
Navachab
(8)
3
4
(5)
-
3
4
3
TANZANIA
(66)
(13)
11
(79)
(4)
(13)
11
(17)
Geita
(66)
(13)
11
(79)
(4)
(13)
11
(17)
USA
(37)
22
16
(15)
19
22
16
41
Cripple Creek & Victor J.V.
(37)
22
16
(15)
19
22
16
41
OTHER
14
(4)
(7)
10
14
(4)
(7)
10
ANGLOGOLD ASHANTI
(866)
274
239
(592)
223
274
239
497
Rounding of figures may result in computational discrepancies.
1
Prior to 1 September 2007 Iduapriem was reported on a 85% attributable basis.
US Dollar
Gross (loss) profit adjusted for the loss on unrealised non-hedge
derivatives and other commodity contracts - $m
Adjusted gross profit (loss) normalised for accelerated settlement
of non-hedge derivatives - $m
South Africa
VAAL RIVER
Quarter
Quarter
Quarter
Six months
Quarter
Quarter
Quarter
Six months
ended
ended
ended
ended
ended
ended
ended
ended
June
March
June
June
June
March
June
June
2008
2008
2007
2008
2008
2008
2007
2008
GREAT NOLIGWA
OPERATING RESULTS
UNDERGROUND OPERATION
Area mined
OPERATING RESULTS
UNDERGROUND OPERATION
Area mined
- 000 m
2
/ - 000 ft
2
70
78
91
147
752
835
982
1,587
Milled
- 000 tonnes / - 000 tons
394
389
505
783
435
428
557
863
Yield
- g/t
/ - oz/t
7.60
8.56
7.67
8.07
0.222
0.250
0.224
0.235
Gold produced
- kg
/ - oz (000)
2,997
3,326
3,876
6,323
96
107
125
203
Gold sold
- kg
/ oz (000)
2,994
3,151
3,836
6,145
96
101
123
198
Total cash costs
- R
/ - $
- ton milled
814
828
558
821
96
100
72
98
- R/kg
/ - $/oz
- produced
107,178
96,801
72,747
101,719
432
400
320
415
Total production costs
- R/kg
/ - $/oz
- produced
130,865
118,554
96,266
124,388
527
491
423
508
PRODUCTIVITY PER EMPLOYEE
Target
Target
- g
/ - oz
178
167
228
172
5.71
5.38
7.32
5.54
Actual
- g
/ - oz
152
168
190
160
4.87
5.40
6.11
5.14
Target
- m
2
/ - ft
2
5.01
4.44
4.99
4.73
53.93
47.82
53.69
50.89
Actual
- m
2
/ - ft
2
3.53
3.92
4.47
3.73
38.03
42.18
48.15
40.11
FINANCIAL RESULTS (MILLION)
Gold income
Gold income
569
536
450
1,105
73
71
64
144
Cost of sales
389
375
369
764
50
50
52
100
Cash operating costs
320
320
281
640
41
43
40
84
Other cash costs
1
2
1
3
-
-
-
-
Total cash costs
321
322
282
643
42
43
40
84
Retrenchment costs
5
7
3
11
1
1
-
1
Rehabilitation and other non-cash costs
3
1
2
4
-
-
-
1
Production costs
328
330
287
658
43
44
41
86
Amortisation of tangible assets
64
64
87
128
8
9
12
17
Inventory change
(3)
(19)
(4)
(22)
-
(3)
(1)
(3)
181
160
81
341
23
21
12
44
Realised non-hedge derivatives and other commodity contracts
(863)
42
77
(821)
(109)
5
11
(104)
(682)
202
158
(480)
(86)
26
22
(60)
Add back accelerated settlement of non-hedge derivatives
736
-
-
736
93
-
-
93
54
202
158
256
7
26
22
33
Capital expenditure
58
40
59
98
7
5
8
13
Rounding of figures may result in computational discrepancies.
Rand / Metric
Dollar / Imperial
Gross (loss) profit excluding the effect of unrealised non-hedge
derivatives and other commodity contracts
derivatives and other commodity contracts
Adjusted gross profit normalised for accelerated settlement of
non-hedge derivatives
non-hedge derivatives
South Africa
VAAL RIVER
Quarter
Quarter
Quarter
Six months
Quarter
Quarter
Quarter
Six months
ended
ended
ended
ended
ended
ended
ended
ended
June
March
June
June
June
March
June
June
2008
2008
2007
2008
2008
2008
2007
2008
KOPANANG
OPERATING RESULTS
UNDERGROUND OPERATION
Area mined
OPERATING RESULTS
UNDERGROUND OPERATION
Area mined
- 000 m
2
/ - 000 ft
2
105
99
115
204
1,128
1,064
1,235
2,192
Milled
- 000 tonnes / - 000 tons
422
402
487
824
465
443
537
909
Yield
- g/t
/ - oz/t
7.10
6.94
6.48
7.02
0.207
0.203
0.189
0.205
Gold produced
- kg
/ - oz (000)
2,997
2,794
3,156
5,790
96
90
101
186
Gold sold
- kg
/ oz (000)
2,991
2,639
3,106
5,630
96
85
100
181
Total cash costs
- R
/ - $
- ton milled
557
594
432
575
65
72
55
68
- R/kg
/ - $/oz
- produced
78,460
85,530
66,677
81,871
316
353
294
334
Total production costs
- R/kg
/ - $/oz
- produced
113,927
128,151
85,412
120,790
458
528
376
492
PRODUCTIVITY PER EMPLOYEE
Target
Target
- g
/ - oz
210
173
239
191
6.75
5.56
7.69
6.16
Actual
- g
/ - oz
201
185
208
193
6.47
5.94
6.68
6.20
Target
- m
2
/ - ft
2
7.53
6.60
7.70
7.07
81.08
71.03
82.83
76.06
Actual
- m
2
/ - ft
2
7.03
6.53
7.55
6.78
75.71
70.32
81.25
72.99
FINANCIAL RESULTS (MILLION)
Gold income
Gold income
578
443
366
1,021
74
58
52
133
Cost of sales
344
338
265
682
44
45
38
89
Cash operating costs
234
238
209
471
30
32
30
62
Other cash costs
1
1
1
3
-
-
-
-
Total cash costs
235
239
210
474
30
32
30
62
Retrenchment costs
3
4
2
7
-
1
-
1
Rehabilitation and other non-cash costs
3
1
2
4
-
-
-
-
Production costs
241
244
214
485
31
32
30
64
Amortisation of tangible assets
101
114
56
214
13
15
8
28
Inventory change
2
(20)
(4)
(18)
-
(3)
(1)
(2)
234
105
101
339
30
14
14
43
Realised non-hedge derivatives and other commodity contracts
(814)
47
60
(767)
(103)
6
9
(97)
(579)
151
161
(428)
(73)
19
23
(53)
Add back accelerated settlement of non-hedge derivatives
669
-
-
669
84
-
-
84
90
151
161
241
12
19
23
31
Capital expenditure
96
84
84
180
12
11
12
24
Rounding of figures may result in computational discrepancies.
Rand / Metric
Dollar / Imperial
Gross (loss) profit excluding the effect of unrealised non-hedge
derivatives and other commodity contracts
derivatives and other commodity contracts
Adjusted gross profit normalised for accelerated settlement of
non-hedge derivatives
non-hedge derivatives
South Africa
VAAL RIVER
Quarter
Quarter
Quarter
Six months
Quarter
Quarter
Quarter
Six months
ended
ended
ended
ended
ended
ended
ended
ended
June
March
June
June
June
March
June
June
2008
2008
2007
2008
2008
2008
2007
2008
MOAB KHOTSONG
OPERATING RESULTS
UNDERGROUND OPERATION
Area mined
OPERATING RESULTS
UNDERGROUND OPERATION
Area mined
- 000 m
2
/ - 000 ft
2
15
11
7
27
166
122
76
288
Milled
- 000 tonnes / - 000 tons
97
74
59
171
107
81
65
189
Yield
- g/t
/ - oz/t
9.05
10.34
6.68
9.61
0.264
0.302
0.195
0.280
Gold produced
- kg
/ - oz (000)
881
764
392
1,644
28
25
13
53
Gold sold
- kg
/ - oz (000)
887
709
393
1,596
29
23
13
51
Total cash costs
- R
/ - $
- ton milled
1,152
1,468
1,055
1,288
135
175
135
152
- R/kg
/ - $/oz
- produced
127,206
141,898
157,986
134,030
512
578
695
543
Total production costs
- R/kg
/ - $/oz
- produced
185,103
172,476
248,698
179,238
744
702
1,094
724
PRODUCTIVITY PER EMPLOYEE
Target
Target
- g
/ - oz
161
122
124
142
5.18
3.91
3.98
4.57
Actual
- g
/ - oz
161
148
110
155
5.18
4.77
3.52
4.98
Target
- m
2
/ - ft
2
3.54
2.40
2.70
3.00
38.14
25.78
29.08
32.24
Actual
- m
2
/ - ft
2
2.82
2.21
1.97
2.52
30.33
23.76
21.20
27.15
FINANCIAL RESULTS (MILLION)
Gold income
Gold income
172
119
45
291
22
16
6
38
Cost of sales
163
123
98
286
21
16
14
37
Cash operating costs
111
108
62
219
14
14
9
29
Other cash costs
1
1
-
1
-
-
-
-
Total cash costs
112
108
62
220
14
14
9
29
Retrenchment costs
-
1
-
1
-
-
-
-
Rehabilitation and other non-cash costs
5
-
-
5
1
-
-
1
Production costs
117
109
63
227
15
14
9
30
Amortisation of tangible assets
46
22
35
68
6
3
5
9
Inventory change
-
(9)
-
(9)
-
(1)
-
(1)
9
(3)
(53)
5
1
-
(7)
1
Realised non-hedge derivatives and other commodity contracts
(245)
14
9
(230)
(31)
2
1
(29)
(236)
11
(44)
(225)
(30)
1
(6)
(28)
Add back accelerated settlement of non-hedge derivatives
201
-
-
201
25
-
-
25
(35)
11
(44)
(24)
(5)
1
(6)
(3)
Capital expenditure
164
143
143
307
21
19
20
40
Rounding of figures may result in computational discrepancies.
Rand / Metric
Dollar / Imperial
Gross (loss) profit excluding the effect of unrealised non-
hedge derivatives and other commodity contracts
hedge derivatives and other commodity contracts
Adjusted gross (loss) profit normalised for accelerated
settlement of non-hedge derivatives
settlement of non-hedge derivatives
June
South Africa
VAAL RIVER
Quarter
Quarter
Quarter
Six months
Quarter
Quarter
Quarter
Six months
ended
ended
ended
ended
ended
ended
ended
ended
June
March
June
June
June
March
June
June
2008
2008
2007
2008
2008
2008
2007
2008
TAU LEKOA
OPERATING RESULTS
UNDERGROUND OPERATION
Area mined
OPERATING RESULTS
UNDERGROUND OPERATION
Area mined
- 000 m
2
/ - 000 ft
2
62
56
70
118
672
603
753
1,275
Milled
- 000 tonnes / - 000 tons
322
272
384
594
355
300
423
655
Yield
- g/t
/ - oz/t
3.33
4.01
3.19
3.64
0.097
0.117
0.093
0.106
Gold produced
- kg
/ - oz (000)
1,073
1,093
1,223
2,166
35
35
39
70
Gold sold
- kg
/ oz (000)
1,070
1,025
1,215
2,096
34
33
39
67
Total cash costs
- R
/ - $
- ton milled
460
516
340
486
54
62
44
58
- R/kg
/ - $/oz
- produced
138,069
128,576
106,673
133,278
554
529
469
541
Total production costs
- R/kg
/ - $/oz
- produced
165,364
158,512
142,841
161,906
663
655
629
659
PRODUCTIVITY PER EMPLOYEE
Target
Target
- g
/ - oz
157
130
162
144
5.04
4.19
5.21
4.61
Actual
- g
/ - oz
125
126
148
125
4.02
4.05
4.77
4.03
Target
- m
2
/ - ft
2
8.15
6.97
8.73
7.56
87.71
75.03
93.98
81.36
Actual
- m
2
/ - ft
2
7.26
6.45
8.49
6.86
78.20
69.44
91.41
73.79
FINANCIAL RESULTS (MILLION)
Gold income
Gold income
216
173
141
389
28
23
20
51
Cost of sales
177
163
173
339
23
22
25
44
Cash operating costs
147
140
130
287
19
19
18
38
Other cash costs
1
1
1
1
-
-
-
-
Total cash costs
148
141
130
289
19
19
18
38
Retrenchment costs
2
1
1
3
-
-
-
-
Rehabilitation and other non-cash costs
1
-
-
1
-
-
-
-
Production costs
151
142
132
292
19
19
19
38
Amortisation of tangible assets
27
31
43
58
3
4
6
8
Inventory change
(1)
(11)
(1)
(12)
-
(1)
-
(2)
39
11
(32)
50
5
1
(5)
6
Realised non-hedge derivatives and other commodity contracts
(303)
18
27
(286)
(38)
2
4
(36)
(264)
28
(6)
(236)
(33)
3
(1)
(30)
Add back accelerated settlement of non-hedge derivatives
290
-
-
290
37
-
-
37
26
28
(6)
54
3
3
(1)
7
Capital expenditure
41
26
23
67
5
3
3
9
Rounding of figures may result in computational discrepancies.
Rand / Metric
Dollar / Imperial
Gross (loss) profit excluding the effect of unrealised non-hedge
derivatives and other commodity contracts
derivatives and other commodity contracts
Adjusted gross profit (loss) normalised for accelerated
settlement of non-hedge derivatives
settlement of non-hedge derivatives
South Africa
VAAL RIVER
Quarter
Quarter
Quarter
Six months
Quarter
Quarter
Quarter
Six months
ended
ended
ended
ended
ended
ended
ended
ended
June
March
June
June
June
March
June
June
2008
2008
2007
2008
2008
2008
2007
2008
SURFACE OPERATIONS
OPERATING RESULTS
Milled
OPERATING RESULTS
Milled
- 000 tonnes / - 000 tons
1,892
1,841
1,969
3,733
2,085
2,030
2,170
4,115
Yield
- g/t
/ - oz/t
0.30
0.36
0.52
0.33
0.009
0.011
0.015
0.010
Gold produced
- kg
/ - oz (000)
573
670
1,030
1,243
18
22
33
40
Gold sold
- kg
/ - oz (000)
567
645
1,025
1,212
18
21
33
39
Total cash costs
- R
/ - $
- ton milled
41
31
35
36
5
4
5
4
- R/kg
/ - $/oz
- produced
136,341
85,350
67,662
108,860
547
357
298
445
Total production costs
- R/kg
/ - $/oz
- produced
144,314
93,904
74,591
117,146
579
393
328
479
PRODUCTIVITY PER EMPLOYEE
Target
Target
- g
/ - oz
615
900
1,324
757
19.78
28.94
42.55
24.34
Actual
- g
/ - oz
847
1,012
1,518
929
27.22
32.54
48.80
29.85
FINANCIAL RESULTS (MILLION)
Gold income
Gold income
112
113
117
225
14
15
17
30
Cost of sales
80
61
76
141
10
8
11
19
Cash operating costs
78
57
70
135
10
8
10
18
Other cash costs
-
-
-
-
-
-
-
-
Total cash costs
78
57
70
135
10
8
10
18
Retrenchment costs
-
-
-
-
-
-
-
-
Rehabilitation and other non-cash costs
-
-
-
-
-
-
-
-
Production costs
78
57
70
135
10
8
10
18
Amortisation of tangible assets
5
6
7
10
1
1
1
1
Inventory change
(2)
(2)
(1)
(5)
-
-
-
(1)
32
52
41
84
4
7
6
11
Realised non-hedge derivatives and other commodity contracts
(143)
2
24
(142)
(18)
-
3
(18)
(112)
54
64
(58)
(14)
7
9
(7)
Add back accelerated settlement of non-hedge derivatives
134
-
-
134
17
-
-
17
22
54
64
76
3
7
9
10
Capital expenditure
2
-
2
2
-
-
-
-
Rounding of figures may result in computational discrepancies.
Rand / Metric
Dollar / Imperial
Gross (loss) profit excluding the effect of unrealised non-
hedge derivatives and other commodity contracts
hedge derivatives and other commodity contracts
Adjusted gross profit normalised for accelerated settlement of
non-hedge derivatives
non-hedge derivatives
South Africa
WEST WITS
Quarter
Quarter
Quarter
Six months
Quarter
Quarter
Quarter
Six months
ended
ended
ended
ended
ended
ended
ended
ended
June
March
June
June
June
March
June
June
2008
2008
2007
2008
2008
2008
2007
2008
MPONENG
OPERATING RESULTS
UNDERGROUND OPERATION
Area mined
OPERATING RESULTS
UNDERGROUND OPERATION
Area mined
- 000 m
2
/ - 000 ft
2
94
84
93
177
1,007
899
1,002
1,906
Milled
- 000 tonnes / - 000 tons
474
412
495
885
522
454
546
976
Yield
- g/t
/ - oz/t
10.50
9.94
9.65
10.24
0.306
0.290
0.282
0.299
Gold produced
- kg
/ - oz (000)
4,974
4,093
4,778
9,067
160
132
154
292
Gold sold
- kg
/ - oz (000)
4,858
3,854
4,702
8,713
156
124
151
280
Total cash costs
- R
/ - $
- ton milled
595
608
541
601
70
73
69
71
- R/kg
/ - $/oz
- produced
56,689
61,113
56,082
58,686
227
253
247
239
Total production costs
- R/kg
/ - $/oz
- produced
76,840
82,927
74,592
79,588
308
343
328
324
PRODUCTIVITY PER EMPLOYEE
Target
Target
- g
/ - oz
272
240
268
256
8.74
7.70
8.61
8.22
Actual
- g
/ - oz
310
259
316
285
9.97
8.33
10.17
9.16
Target
- m
2
/ - ft
2
5.44
5.14
5.64
5.29
58.52
55.28
60.67
56.89
Actual
- m
2
/ - ft
2
5.83
5.29
6.17
5.56
62.74
56.96
66.37
59.87
FINANCIAL RESULTS (MILLION)
Gold income
Gold income
881
636
659
1,517
113
84
93
197
Cost of sales
375
320
351
696
48
42
50
91
Cash operating costs
280
248
266
529
36
33
38
69
Other cash costs
2
2
2
3
-
-
-
-
Total cash costs
282
250
268
532
36
33
38
70
Retrenchment costs
1
4
2
5
-
-
-
1
Rehabilitation costs
3
1
2
4
-
-
-
1
Production costs
286
255
271
541
37
34
38
71
Amortisation of tangible assets
96
84
85
180
12
11
12
24
Inventory change
(7)
(19)
(5)
(26)
(1)
(3)
(1)
(4)
506
316
308
822
65
41
44
106
Realised non-hedge derivatives and other commodity contracts
(1,114)
88
(15)
(1,026)
(140)
11
(2)
(129)
(608)
404
293
(205)
(75)
52
41
(23)
Add back accelerated settlement of non-hedge derivatives
1,116
-
-
1,116
141
-
-
141
507
404
293
911
65
52
41
118
Capital expenditure
150
120
105
270
19
16
15
35
Rounding of figures may result in computational discrepancies.
Rand / Metric
Dollar / Imperial
Gross (loss) profit excluding the effect of unrealised non-
hedge derivatives and other commodity contracts
hedge derivatives and other commodity contracts
Adjusted gross profit normalised for accelerated settlement of
non-hedge derivatives
non-hedge derivatives
South Africa
WEST WITS
Quarter
Quarter
Quarter
Six months
Quarter
Quarter
Quarter
Six months
ended
ended
ended
ended
ended
ended
ended
ended
June
March
June
June
June
March
June
June
2008
2008
2007
2008
2008
2008
2007
2008
SAVUKA
OPERATING RESULTS
UNDERGROUND OPERATION
Area mined
OPERATING RESULTS
UNDERGROUND OPERATION
Area mined
- 000 m
2
/ - 000 ft
2
18
13
17
31
190
140
178
331
Milled
- 000 tonnes / - 000 tons
88
75
81
164
98
83
89
180
Yield
- g/t
/ - oz/t
6.36
5.96
6.81
6.17
0.185
0.174
0.199
0.180
Gold produced
- kg
/ - oz (000)
563
448
552
1,010
18
14
18
32
Gold sold
- kg
/ - oz (000)
555
423
545
977
18
14
18
31
Total cash costs
- R
/ - $
- ton milled
698
526
667
619
82
64
86
73
- R/kg
/ - $/oz
- produced
109,769
88,349
97,989
100,278
440
367
431
408
Total production costs
- R/kg
/ - $/oz
- produced
152,790
123,374
119,954
139,756
613
511
528
568
PRODUCTIVITY PER EMPLOYEE
Target
Target
- g
/ - oz
164
140
176
153
5.28
4.51
5.65
4.91
Actual
- g
/ - oz
174
146
172
160
5.58
4.69
5.54
5.15
Target
- m
2
/ - ft
2
5.54
4.42
5.84
5.00
59.62
47.62
62.87
53.80
Actual
- m
2
/ - ft
2
5.46
4.25
5.17
4.87
58.76
45.70
55.60
52.41
FINANCIAL RESULTS (MILLION)
Gold income
Gold income
96
70
77
166
12
9
11
22
Cost of sales
84
52
65
136
11
7
9
18
Cash operating costs
61
39
54
101
8
5
8
13
Other cash costs
-
-
-
1
-
-
-
-
Total cash costs
62
40
54
101
8
5
8
13
Retrenchment costs
-
1
-
1
-
-
-
-
Rehabilitation and other non-cash costs
-
-
-
-
-
-
-
-
Production costs
62
40
54
103
8
5
8
13
Amortisation of tangible assets
24
15
12
39
3
2
2
5
Inventory change
(2)
(3)
(1)
(5)
-
-
-
(1)
13
18
12
30
2
2
2
4
Realised non-hedge derivatives and other commodity contracts
(108)
10
(2)
(98)
(14)
1
-
(12)
(95)
27
10
(68)
(12)
3
1
(9)
Add back accelerated settlement of non-hedge derivatives
112
-
-
112
14
-
-
14
16
27
10
44
2
3
1
6
Capital expenditure
24
21
13
44
3
3
2
6
Rounding of figures may result in computational discrepancies.
Rand / Metric
Dollar / Imperial
Gross (loss) profit excluding the effect of unrealised non-
hedge derivatives and other commodity contracts
hedge derivatives and other commodity contracts
Adjusted gross profit normalised for accelerated settlement of
non-hedge derivatives
non-hedge derivatives
South Africa
WEST WITS
Quarter
Quarter
Quarter
Six months
Quarter
Quarter
Quarter
Six months
ended
ended
ended
ended
ended
ended
ended
ended
June
March
June
June
June
March
June
June
2008
2008
2007
2008
2008
2008
2007
2008
TAUTONA
OPERATING RESULTS
UNDERGROUND OPERATION
Area mined
OPERATING RESULTS
UNDERGROUND OPERATION
Area mined
- 000 m
2
/ - 000 ft
2
46
42
53
88
496
452
565
949
Milled
- 000 tonnes / - 000 tons
301
259
321
560
332
286
354
618
Yield
- g/t
/ - oz/t
9.18
8.70
9.39
8.96
0.268
0.254
0.274
0.261
Gold produced
- kg
/ - oz (000)
2,761
2,258
3,017
5,018
89
73
97
161
SURFACE AND DUMP RECLAMATION
Treated
Treated
- 000 tonnes / - 000 tons
140
123
139
263
154
136
154
290
Yield
- g/t
/ - oz/t
0.36
0.43
0.41
0.39
0.011
0.013
0.012
0.011
Gold produced
- kg
/ - oz (000)
50
53
58
103
2
2
2
3
TOTAL
Yield
1
- g/t
/ - oz/t
9.18
8.70
9.39
8.96
0.268
0.254
0.274
0.261
Gold produced
- kg
/ - oz (000)
2,811
2,311
3,075
5,122
91
74
99
165
Gold sold
- kg
/ - oz (000)
2,739
2,190
3,012
4,929
88
70
97
158
Total cash costs
- R
/ - $
- ton milled
539
562
471
550
63
68
61
65
- R/kg
/ - $/oz
- produced
84,434
93,118
70,629
88,352
339
386
311
360
Total production costs
- R/kg
/ - $/oz
- produced
123,478
124,319
103,544
123,857
495
516
456
505
PRODUCTIVITY PER EMPLOYEE
Target
Target
- g
/ - oz
258
186
340
220
8.30
5.99
10.93
7.08
Actual
- g
/ - oz
242
185
244
212
7.78
5.93
7.86
6.82
Target
- m
2
/ - ft
2
4.48
3.40
5.65
3.91
48.25
36.59
60.82
42.09
Actual
- m
2
/ - ft
2
3.97
3.36
4.17
3.65
42.75
36.13
44.93
39.32
FINANCIAL RESULTS (MILLION)
Gold income
Gold income
499
361
425
860
64
48
60
112
Cost of sales
338
273
310
611
44
36
44
80
Cash operating costs
236
214
216
450
30
29
31
59
Other cash costs
1
1
1
3
-
-
-
-
Total cash costs
237
215
217
453
31
29
31
59
Retrenchment costs
4
9
1
13
1
1
-
2
Rehabilitation and other non-cash costs
2
1
1
3
-
-
-
-
Production costs
244
225
220
469
31
30
31
61
Amortisation of tangible assets
103
62
99
165
13
8
14
22
Inventory change
(9)
(14)
(8)
(23)
(1)
(2)
(1)
(3)
161
88
115
249
21
11
16
32
Realised non-hedge derivatives and other commodity contracts
(628)
48
(10)
(581)
(79)
6
(1)
(73)
(467)
135
105
(332)
(58)
17
15
(41)
Add back accelerated settlement of non-hedge derivatives
625
-
-
625
79
-
-
79
158
135
105
293
20
17
15
38
Capital expenditure
120
91
111
211
15
12
16
28
1
Total yield excludes the surface and dump reclamation.
Rounding of figures may result in computational discrepancies.
Rand / Metric
Dollar / Imperial
Gross (loss) profit excluding the effect of unrealised non-
hedge derivatives and other commodity contracts
hedge derivatives and other commodity contracts
Adjusted gross profit normalised for accelerated settlement of
non-hedge derivatives
non-hedge derivatives
Argentina
Quarter
Quarter
Quarter
Six months
Quarter
Quarter
Quarter
Six months
ended
ended
ended
ended
ended
ended
ended
ended
June
March
June
June
June
March
June
June
2008
2008
2007
2008
2008
2008
2007
2008
CERRO VANGUARDIA - Atrributable 92.50%
OPERATING RESULTS
OPEN-PIT OPERATION
Mined
OPERATING RESULTS
OPEN-PIT OPERATION
Mined
- 000 tonnes / - 000 tons
6,298
5,786
5,236
12,084
6,943
6,378
5,772
13,320
Treated
- 000 tonnes / - 000 tons
208
224
237
432
229
247
262
476
Stripping ratio
- t (mined total-mined ore) / t mined ore
35.20
23.87
22.76
28.72
35.20
23.87
22.76
28.72
Yield
- g/t
/ - oz/t
4.06
3.82
6.61
3.93
0.118
0.111
0.193
0.115
Gold in ore
- kg
/ - oz (000)
903
907
1,642
1,810
29
29
53
58
Gold produced
- kg
/ - oz (000)
842
856
1,569
1,698
27
28
50
55
Gold sold
- kg
/ - oz (000)
858
1,457
1,533
2,316
28
47
49
74
Total cash costs
- R/kg
/ - $/oz
- produced
217,167
132,332
57,982
174,406
870
553
256
710
Total production costs
- R/kg
/ - $/oz
- produced
243,507
166,287
85,258
204,585
976
692
376
833
PRODUCTIVITY PER EMPLOYEE
Target
Target
- g
/ - oz
684
582
763
633
21.98
18.71
24.52
20.35
Actual
- g
/ - oz
390
417
782
403
12.53
13.39
25.13
12.95
FINANCIAL RESULTS (MILLION)
Gold income
Gold income
27
293
233
319
4
38
33
42
Cost of sales
185
198
127
384
24
26
18
50
Cash operating costs
167
85
71
252
22
12
10
33
Other cash costs
16
28
20
44
2
4
3
6
Total cash costs
183
113
91
296
24
15
13
39
Rehabilitation and other non-cash costs
(4)
5
-
1
-
1
-
-
Production costs
179
118
91
297
23
16
13
39
Amortisation of tangible assets
26
24
42
50
3
3
6
7
Inventory change
(20)
56
(7)
36
(2)
7
(1)
4
(159)
94
107
(64)
(20)
12
15
(8)
Realised non-hedge derivatives and other commodity contracts
(34)
(35)
(16)
(69)
(4)
(5)
(2)
(9)
(193)
59
91
(134)
(24)
7
13
(17)
Add back accelerated settlement of non-hedge derivatives
144
-
-
144
18
-
-
18
(48)
59
91
11
(6)
7
13
1
Capital expenditure
28
34
28
63
4
5
4
8
Rounding of figures may result in computational discrepancies.
Rand / Metric
Dollar / Imperial
Gross (loss) profit excluding the effect of unrealised non-
hedge derivatives and other commodity contracts
hedge derivatives and other commodity contracts
Adjusted gross (loss) profit normalised for accelerated
settlement of non-hedge derivatives
settlement of non-hedge derivatives
Australia
Quarter
Quarter
Quarter
Six months
Quarter
Quarter
Quarter
Six months
ended
ended
ended
ended
ended
ended
ended
ended
June
March
June
June
June
March
June
June
2008
2008
2007
2008
2008
2008
2007
2008
SUNRISE DAM
OPERATING RESULTS
UNDERGROUND OPERATION
Mined
OPERATING RESULTS
UNDERGROUND OPERATION
Mined
- 000 tonnes
/ - ooo tons
152
119
86
271
168
131
95
299
Treated
- 000 tonnes
/ - 000 tons
80
125
130
205
88
138
143
226
Yield
- g/t
/ - oz/t
4.51
4.95
6.23
4.78
0.131
0.144
0.182
0.139
Gold produced
- kg
/ - oz (000)
362
619
808
981
12
20
26
32
OPEN-PIT OPERATION
Volume mined
Volume mined
- 000 bcm
/ - 000 bcy
2,949
2,840
1,511
5,789
3,857
3,715
1,976
7,572
Treated
- 000 tonnes
/ - 000 tons
845
752
787
1,597
931
829
868
1,761
Stripping ratio
- t (mined total-mined ore) / t mined ore
14.55
10.95
1.36
12.55
14.55
10.95
1.36
12.56
Yield
- g/t
/ - oz/t
3.75
4.10
4.86
3.92
0.109
0.120
0.142
0.114
Gold produced
- kg
/ - oz (000)
3,167
3,088
3,823
6,255
102
99
123
201
TOTAL
Yield
1
- g/t
/ - oz/t
3.75
4.10
4.86
3.92
0.109
0.120
0.142
0.114
Gold produced
- kg
/ - oz (000)
3,529
3,707
4,631
7,236
114
119
149
233
Gold sold
- kg
/ - oz (000)
3,698
3,583
4,227
7,281
119
115
136
234
Total cash costs
- R/kg
/ - $/oz
- produced
137,877
111,183
67,115
124,201
553
455
295
503
Total production costs
- R/kg
/ - $/oz
- produced
164,025
135,374
86,776
149,346
658
556
382
606
PRODUCTIVITY PER EMPLOYEE
Target
Target
- g
/ - oz
3,489
3,824
4,654
3,658
112.17
122.95
149.63
117.61
Actual
- g
/ - oz
2,983
2,878
4,356
2,928
95.90
92.54
140.06
94.15
FINANCIAL RESULTS (MILLION)
Gold income
Gold income
92
727
483
819
14
96
68
110
Cost of sales
603
485
374
1,088
78
64
53
142
Cash operating costs
469
391
295
860
60
51
42
112
Other cash costs
18
21
16
39
2
3
2
5
Total cash costs
487
412
311
899
63
54
44
117
Rehabilitation and other non-cash costs
3
-
2
3
-
-
-
-
Production costs
489
412
313
901
63
54
44
117
Amortisation of tangible assets
89
90
89
179
12
12
13
24
Inventory change
24
(17)
(28)
7
3
(2)
(4)
1
(511)
242
109
(269)
(64)
33
15
(31)
Realised non-hedge derivatives and other commodity contracts
(148)
(74)
103
(222)
(19)
(10)
14
(28)
(659)
168
212
(491)
(83)
23
30
(60)
Add back accelerated settlement of non-hedge derivatives
736
-
-
736
93
-
-
93
78
168
212
246
10
23
30
33
Capital expenditure
49
31
45
79
6
4
6
10
1
Total yield excludes the underground operations.
Rounding of figures may result in computational discrepancies.
Rand / Metric
Dollar / Imperial
Gross (loss) profit excluding the effect of unrealised non-hedge
derivatives and other commodity contracts
derivatives and other commodity contracts
Adjusted gross profit normalised for accelerated settlement of
non-hedge derivatives
non-hedge derivatives
Brazil
Quarter
Quarter
Quarter
Six months
Quarter
Quarter
Quarter
Six months
ended
ended
ended
ended
ended
ended
ended
ended
June
March
June
June
June
March
June
June
2008
2008
2007
2008
2008
2008
2007
2008
ANGLOGOLD ASHANTI BRASIL MINERAÇÃO
OPERATING RESULTS
UNDERGROUND OPERATION
Mined
OPERATING RESULTS
UNDERGROUND OPERATION
Mined
- 000 tonnes / - 000 tons
296
304
294
599
326
335
324
661
Treated
- 000 tonnes / - 000 tons
296
308
296
604
326
340
327
665
Yield
- g/t
/ - oz/t
7.72
6.77
6.80
7.24
0.225
0.198
0.198
0.211
Gold produced
- kg
/ - oz (000)
2,282
2,086
2,014
4,368
73
67
65
140
HEAP LEACH OPERATION
Mined
Mined
- 000 tonnes / - 000 tons
1,223
684
1,387
1,907
1,349
754
1,529
2,102
Placed
1
- 000 tonnes / - 000 tons
65
43
56
108
72
48
61
120
Stripping ratio
- t (mined total-mined ore) / t mined ore
18.08
14.41
23.63
16.58
18.08
14.41
23.63
16.58
Yield
2
- g/t
/ - oz/t
4.62
5.26
5.15
4.87
0.135
0.153
0.150
0.142
Gold placed
3
- kg
/ - oz (000)
301
227
287
529
10
7
9
17
Gold produced
- kg
/ - oz (000)
248
165
250
413
8
5
8
13
TOTAL
Yield
4
- g/t
/ - oz/t
7.72
6.77
6.80
7.24
0.225
0.198
0.198
0.211
Gold produced
- kg
/ - oz (000)
2,530
2,251
2,264
4,781
82
72
73
154
Gold sold
- kg
/ - oz (000)
2,519
2,432
2,146
4,951
81
78
69
159
Total cash costs
- R/kg
/ - $/oz
- produced
80,564
76,600
56,661
78,698
323
316
249
320
Total production costs
- R/kg
/ - $/oz
- produced
109,484
113,174
78,469
111,221
439
467
345
452
PRODUCTIVITY PER EMPLOYEE
Target
Target
- g
/ - oz
560
540
562
550
18.00
17.37
18.06
17.69
Actual
- g
/ - oz
571
504
541
537
18.35
16.21
17.38
17.28
FINANCIAL RESULTS (MILLION)
Gold income
Gold income
76
483
264
559
11
65
37
75
Cost of sales
277
249
162
525
36
33
23
69
Cash operating costs
198
167
125
365
26
22
18
48
Other cash costs
6
6
3
11
1
1
-
1
Total cash costs
204
172
128
376
26
23
18
49
Rehabilitation and other non-cash costs
(6)
7
-
1
(1)
1
-
-
Production costs
198
179
129
378
26
24
18
49
Amortisation of tangible assets
79
75
49
154
10
10
7
20
Inventory change
-
(6)
(16)
(6)
-
-
(2)
(1)
(201)
234
102
33
(25)
31
14
6
Realised non-hedge derivatives and other commodity contracts
(263)
(50)
36
(313)
(33)
(6)
5
(40)
(464)
184
138
(279)
(58)
25
19
(33)
Add back accelerated settlement of non-hedge derivatives
647
-
-
647
82
-
-
82
183
184
138
368
24
25
19
48
Capital expenditure
166
123
217
289
21
16
31
38
1
Tonnes / Tons placed onto leach pad.
4
Total yield represents underground operations.
2
Gold placed / tonnes (tons) placed.
3
Gold placed into leach pad inventory.
Rounding of figures may result in computational discrepancies.
Rand / Metric
Dollar / Imperial
Gross (loss) profit excluding the effect of unrealised non-
hedge derivatives and other commodity contracts
hedge derivatives and other commodity contracts
Adjusted gross profit normalised for accelerated settlement of
non-hedge derivatives
non-hedge derivatives
Brazil
Quarter
Quarter
Quarter
Six months
Quarter
Quarter
Quarter
Six months
ended
ended
ended
ended
ended
ended
ended
ended
June
March
June
June
June
March
June
June
2008
2008
2007
2008
2008
2008
2007
2008
SERRA GRANDE - Attributable 50%
OPERATING RESULTS
UNDERGROUND OPERATION
Mined
OPERATING RESULTS
UNDERGROUND OPERATION
Mined
- 000 tonnes / - 000 tons
81
83
87
164
90
91
96
181
Treated
- 000 tonnes / - 000 tons
76
78
103
154
84
86
114
170
Yield
- g/t
/ - oz/t
7.47
7.19
7.19
7.33
0.218
0.210
0.210
0.214
Gold produced
- kg
/ - oz (000)
568
561
742
1,129
18
18
24
36
OPEN-PIT OPERATION
Mined
Mined
- 000 tonnes / - 000 tons
189
129
-
318
208
143
-
351
Treated
- 000 tonnes / - 000 tons
27
21
-
48
30
23
-
53
Stripping ratio
- t (mined total-mined ore) / t mined ore
6.70
4.19
-
5.43
6.70
4.19
-
5.43
Yield
- g/t
/ - oz/t
4.59
3.85
-
4.27
0.134
0.112
-
0.125
Gold in ore
- kg
/ - oz (000)
136
86
-
223
4
3
-
7
Gold produced
- kg
/ - oz (000)
125
80
-
205
4
3
-
7
TOTAL
Yield
1
- g/t
/ - oz/t
7.47
7.19
7.19
7.33
0.218
0.210
0.210
0.214
Gold produced
- kg
/ - oz (000)
693
641
742
1,334
22
21
24
43
Gold sold
- kg
/ - oz (000)
670
621
752
1,291
22
20
24
42
Total cash costs
- R/kg
/ - $/oz
- produced
76,679
70,185
59,638
73,559
307
290
263
299
Total production costs
- R/kg
/ - $/oz
- produced
99,533
94,042
78,631
96,895
399
388
346
394
PRODUCTIVITY PER EMPLOYEE
Target
Target
- g
/ - oz
717
680
891
699
23.06
21.85
28.64
22.46
Actual
- g
/ - oz
738
700
898
719
23.74
22.49
28.87
23.12
FINANCIAL RESULTS (MILLION)
Gold income
Gold income
45
136
93
181
6
18
13
24
Cost of sales
65
59
58
124
8
8
8
16
Cash operating costs
50
42
41
91
6
6
6
12
Other cash costs
3
3
3
7
-
-
-
1
Total cash costs
53
45
44
98
7
6
6
13
Rehabilitation and other non-cash costs
(1)
1
-
-
-
-
-
-
Production costs
53
46
44
98
7
6
6
13
Amortisation of tangible assets
16
15
14
31
2
2
2
4
Inventory change
(4)
(1)
-
(5)
(1)
-
-
(1)
(20)
77
35
57
(2)
10
5
8
Realised non-hedge derivatives and other commodity contracts
(65)
(22)
11
(87)
(8)
(3)
2
(11)
(85)
55
45
(30)
(11)
7
6
(3)
Add back accelerated settlement of non-hedge derivatives
134
-
-
134
17
-
-
17
49
55
45
104
6
7
6
14
Capital expenditure
31
27
24
58
4
4
3
8
1
Total yield represents underground operations.
Rounding of figures may result in computational discrepancies.
Rand / Metric
Dollar / Imperial
Gross (loss) profit excluding the effect of unrealised non-
hedge derivatives and other commodity contracts
hedge derivatives and other commodity contracts
Adjusted gross profit normalised for accelerated settlement of
non-hedge derivatives
non-hedge derivatives
Ghana
Quarter
Quarter
Quarter
Six months
Quarter
Quarter
Quarter
Six months
ended
ended
ended
ended
ended
ended
ended
ended
June
March
June
June
June
March
June
June
2008
2008
2007
2008
2008
2008
2007
2008
IDUAPRIEM
1
OPERATING RESULTS
OPEN-PIT OPERATION
Mined
OPEN-PIT OPERATION
Mined
- 000 tonnes
/ - 000 tons
3,607
4,502
5,232
8,109
3,976
4,963
5,768
8,939
Treated
- 000 tonnes
/ - 000 tons
882
815
758
1,697
973
898
836
1,871
Stripping ratio
- t (mined total-mined ore) / t mined ore
2.77
4.13
7.95
3.42
2.77
4.13
7.95
3.42
Yield
- g/t
/ - oz/t
1.61
1.81
1.78
1.71
0.047
0.053
0.052
0.050
Gold in ore
- kg
/ - oz (000)
1,640
1,616
1,548
3,256
53
52
50
105
Gold produced
- kg
/ - oz (000)
1,423
1,471
1,347
2,894
46
47
43
93
Gold sold
- kg
/ - oz (000)
1,471
1,459
1,308
2,930
47
47
42
94
Total cash costs
- R/kg
/ - $/oz
- produced
123,016
109,611
66,628
116,202
493
452
293
472
Total produced costs
- R/kg
/ - $/oz
- produced
143,725
136,025
84,760
139,811
576
560
372
568
PRODUCTIVITY PER EMPLOYEE
Target
Target
- g
/ - oz
704
562
637
633
22.62
18.08
20.49
20.35
Actual
- g
/ - oz
550
568
614
559
17.68
18.27
19.73
17.98
FINANCIAL RESULTS (MILLION)
Gold income
Gold income
384
289
170
673
49
38
24
87
Cost of sales
212
187
115
399
27
25
16
52
Cash operating costs
164
150
82
314
21
20
12
41
Other cash costs
11
11
7
22
1
2
1
3
Total cash costs
175
161
90
336
23
21
13
44
Rehabilitation and other non-cash costs
(2)
7
-
5
-
1
-
1
Production costs
173
168
90
341
22
22
13
45
Amortisation of tangible assets
32
32
24
64
4
4
3
8
Inventory change
7
(13)
-
(6)
1
(2)
-
(1)
172
102
55
274
22
13
8
35
Realised non-hedge derivatives and other commodity contracts
(434)
(23)
9
(458)
(55)
(3)
1
(58)
(262)
78
65
(183)
(33)
10
9
(22)
Add back accelerated settlement of non-hedge derivatives
312
-
-
312
39
-
-
39
51
78
65
129
7
10
9
17
Capital expenditure
104
58
28
161
13
8
4
21
Rounding of figures may result in computational discrepancies.
Rand / Metric
Dollar / Imperial
Gross (loss) profit excluding the effect of unrealised non-hedge
derivatives and other commodity contracts
derivatives and other commodity contracts
1
Effective 1 September 2007, the minority shareholdings of the International Finance Corporation (10%) and Government of Ghana (5%) were acquired and Iduapriem is now fully owned by AngloGold
Ashanti. Prior to 1 September 2007 Iduapriem was reported on a 85% attributable basis.
Adjusted gross profit normalised for accelerated settlement of
non-hedge derivatives
non-hedge derivatives
Ghana
Quarter
Quarter
Quarter
Six months
Quarter
Quarter
Quarter
Six months
ended
ended
ended
ended
ended
ended
ended
ended
June
March
June
June
June
March
June
June
2008
2008
2007
2008
2008
2008
2007
2008
OBUASI
OPERATING RESULTS
UNDERGROUND OPERATION
Mined
OPERATING RESULTS
UNDERGROUND OPERATION
Mined
- 000 tonnes
/ - 000 tons
477
435
456
912
526
479
503
1,005
Treated
- 000 tonnes
/ - 000 tons
479
506
543
985
528
558
598
1,086
Yield
- g/t
/ - oz/t
4.15
4.19
4.16
4.17
0.121
0.122
0.121
0.122
Gold produced
- kg
/ - oz (000)
1,989
2,123
2,259
4,112
64
68
73
132
SURFACE AND DUMP RECLAMATION
Treated
Treated
- 000 tonnes
/ - 000 tons
843
861
1,083
1,704
930
949
1,194
1,879
Yield
- g/t
/ - oz/t
0.57
0.69
0.55
0.63
0.016
0.020
0.016
0.018
Gold produced
- kg
/ - oz (000)
477
595
592
1,072
15
19
19
34
TOTAL
Yield
1
- g/t
/ - oz/t
4.15
4.19
4.16
4.17
0.121
0.122
0.121
0.122
Gold produced
- kg
/ - oz (000)
2,465
2,718
2,851
5,183
79
87
92
167
Gold sold
- kg
/ - oz (000)
2,452
2,669
2,781
5,121
79
86
89
165
Total cash costs
- R/kg
/ - $/oz
- produced
152,565
127,301
102,805
138,855
612
517
452
562
Total production costs
- R/kg
/ - $/oz
- produced
203,889
185,552
136,780
193,812
817
755
601
785
PRODUCTIVITY PER EMPLOYEE
Target
Target
- g
/ - oz
218
196
334
207
7.02
6.29
10.75
6.66
Actual
- g
/ - oz
175
191
181
183
5.64
6.14
5.82
5.89
FINANCIAL RESULTS (MILLION)
Gold income
Gold income
857
546
362
1,404
109
72
51
181
Cost of sales
502
484
372
986
65
64
53
129
Cash operating costs
357
322
278
679
46
42
39
88
Other cash costs
19
22
16
40
2
3
2
5
Total cash costs
376
344
293
720
48
45
41
94
Retrenchment costs
-
-
-
-
-
-
-
-
Rehabilitation and other non-cash costs
(1)
27
4
27
-
4
1
3
Production costs
376
371
297
746
48
49
42
97
Amortisation of tangible assets
127
131
93
258
16
17
13
34
Inventory change
-
(18)
(18)
(19)
-
(2)
(2)
(2)
355
63
(10)
418
45
8
(1)
53
Realised non-hedge derivatives and other commodity contracts
(927)
(50)
20
(978)
(117)
(6)
3
(123)
(572)
13
10
(560)
(72)
2
1
(71)
Add back accelerated settlement of non-hedge derivatives
513
-
-
513
65
-
-
65
(59)
13
10
(47)
(8)
2
1
(6)
Capital expenditure
155
138
198
293
20
18
28
38
1
Total yield represents underground operations.
Rounding of figures may result in computational discrepancies.
Rand / Metric
Dollar / Imperial
Gross (loss) profit excluding the effect of unrealised non-hedge
derivatives and other commodity contracts
derivatives and other commodity contracts
Adjusted gross (loss) profit normalised for accelerated settlement
of non-hedge derivatives
of non-hedge derivatives
Guinea
Quarter
Quarter
Quarter
Six months
Quarter
Quarter
Quarter
Six months
ended
ended
ended
ended
ended
ended
ended
ended
June
March
June
June
June
March
June
June
2008
2008
2007
2008
2008
2008
2007
2008
SIGUIRI - Attributable 85%
OPERATING RESULTS
OPEN-PIT OPERATION
Mined
OPERATING RESULTS
OPEN-PIT OPERATION
Mined
- 000 tonnes
/ - 000 tons
6,063
7,397
4,973
13,461
6,684
8,154
5,481
14,838
Treated
- 000 tonnes
/ - 000 tons
1,994
2,205
1,981
4,200
2,198
2,431
2,184
4,629
Stripping ratio
- t (mined total-mined ore) / t mined ore
1.45
1.21
0.66
1.31
1.45
1.21
0.66
1.31
Yield
- g/t
/ - oz/t
1.35
1.32
1.01
1.33
0.039
0.038
0.029
0.039
Gold produced
- kg
/ - oz (000)
2,682
2,901
1,992
5,583
86
93
64
179
Gold sold
- kg
/ - oz (000)
2,482
2,885
1,944
5,367
80
93
63
173
Total cash costs
- R/kg
/ - $/oz
- produced
108,248
105,581
113,624
106,862
434
436
500
435
Total production costs
- R/kg
/ - $/oz
- produced
124,373
128,764
137,738
126,655
499
529
607
515
PRODUCTIVITY PER EMPLOYEE
Target
Target
- g
/ - oz
507
590
299
548
16.29
18.97
9.61
17.63
Actual
- g
/ - oz
659
687
474
673
21.19
22.08
15.23
21.65
FINANCIAL RESULTS (MILLION)
Gold income
Gold income
670
558
252
1,228
86
74
36
160
Cost of sales
306
369
265
675
40
49
38
88
Cash operating costs
247
228
189
474
32
30
27
62
Other cash costs
44
79
37
122
6
10
5
16
Total cash costs
290
306
226
597
37
41
32
78
Rehabilitation and other non-cash costs
1
24
-
25
-
3
-
3
Production costs
291
330
227
621
37
44
32
81
Amortisation of tangible assets
43
43
48
86
6
6
7
11
Inventory change
(28)
(4)
(10)
(32)
(3)
-
(1)
(4)
364
189
(13)
553
46
25
(2)
72
Realised non-hedge derivatives and other commodity contracts
(612)
(33)
13
(645)
(77)
(4)
2
(81)
(248)
156
1
(91)
(31)
21
-
(10)
Add back accelerated settlement of non-hedge derivatives
379
-
-
379
48
-
-
48
132
156
1
288
17
21
-
38
Capital expenditure
41
37
32
79
5
5
5
10
Rounding of figures may result in computational discrepancies.
Rand / Metric
Dollar / Imperial
Gross (loss) profit excluding the effect of unrealised non-hedge
derivatives and other commodity contracts
derivatives and other commodity contracts
Adjusted gross profit normalised for accelerated settlement of
non-hedge derivatives
non-hedge derivatives
Mali
Quarter
Quarter
Quarter
Six months
Quarter
Quarter
Quarter
Six months
ended
ended
ended
ended
ended
ended
ended
ended
June
March
June
June
June
March
June
June
2008
2008
2007
2008
2008
2008
2007
2008
MORILA - Attributable 40%
OPERATING RESULTS
OPEN-PIT OPERATION
Volume mined
OPERATING RESULTS
OPEN-PIT OPERATION
Volume mined
- 000 bcm
/ - 000 bcy
724
840
827
1,564
947
1,099
1,082
2,046
Mined
- 000 tonnes
/ - 000 tons
2,012
2,280
2,152
4,292
2,217
2,514
2,372
4,731
Treated
- 000 tonnes
/ - 000 tons
435
403
421
838
480
444
464
924
Stripping ratio
- t (mined total-mined ore) / t mined ore
3.15
2.72
5.80
2.91
3.15
2.72
5.80
2.91
Yield
- g/t
/ - oz/t
3.25
3.12
2.57
3.19
0.095
0.091
0.075
0.093
Gold produced
- kg
/ - oz (000)
1,415
1,257
1,080
2,672
46
40
35
86
Gold sold
- kg
/ - oz (000)
1,542
1,283
1,057
2,825
50
41
34
91
Total cash costs
- R/kg
/ - $/oz
- produced
106,319
99,282
93,093
103,009
426
409
410
418
Total production costs
- R/kg
/ - $/oz
- produced
125,377
117,814
110,034
121,820
503
486
484
495
PRODUCTIVITY PER EMPLOYEE
Target
Target
- g
/ - oz
1,188
967
975
1,077
38.18
31.10
31.34
34.64
Actual
- g
/ - oz
899
823
714
862
28.91
26.46
22.97
27.70
FINANCIAL RESULTS (MILLION)
Gold income
Gold income
(52)
231
144
179
(6)
31
20
25
Cost of sales
191
149
114
339
25
20
16
44
Cash operating costs
128
105
89
233
17
14
13
30
Other cash costs
22
20
12
42
3
3
2
5
Total cash costs
150
125
101
275
19
17
14
36
Rehabilitation and other non-cash costs
-
-
1
1
-
-
-
-
Production costs
151
125
101
276
19
17
14
36
Amortisation of tangible assets
27
23
18
50
3
3
3
6
Inventory change
13
1
(5)
14
2
-
(1)
2
(243)
83
30
(161)
(30)
11
4
(19)
Realised non-hedge derivatives and other commodity contracts
-
-
-
-
-
-
-
-
(243)
83
30
(161)
(30)
11
4
(19)
Add back accelerated settlement of non-hedge derivatives
335
-
-
335
42
-
-
42
91
83
30
174
12
11
4
23
Capital expenditure
2
1
1
3
-
-
-
-
Rounding of figures may result in computational discrepancies.
Rand / Metric
Dollar / Imperial
Gross (loss) profit excluding the effect of unrealised non-hedge
derivatives and other commodity contracts
derivatives and other commodity contracts
Adjusted gross profit normalised for accelerated settlement of
non-hedge derivatives
non-hedge derivatives
Mali
Quarter
Quarter
Quarter
Six months
Quarter
Quarter
Quarter
Six months
ended
ended
ended
ended
ended
ended
ended
ended
June
March
June
June
June
March
June
June
2008
2008
2007
2008
2008
2008
2007
2008
SADIOLA - Attributable 38%
OPERATING RESULTS
OPEN-PIT OPERATION
Volume mined
OPERATING RESULTS
OPEN-PIT OPERATION
Volume mined
- 000 bcm
/ - 000 bcy
1,180
1,367
1,495
2,547
1,544
1,788
1,955
3,332
Mined
- 000 tonnes
/ - 000 tons
2,250
2,629
2,845
4,879
2,480
2,898
3,136
5,378
Treated
- 000 tonnes
/ - 000 tons
397
359
398
757
438
396
439
834
Stripping ratio
- t (mined total-mined ore) / t mined ore
2.69
2.52
2.94
2.59
2.69
2.52
2.94
2.59
Yield
- g/t
/ - oz/t
3.55
3.16
2.63
3.37
0.104
0.092
0.077
0.098
Gold produced
- kg
/ - oz (000)
1,411
1,135
1,048
2,546
45
36
34
82
Gold sold
- kg
/ - oz (000)
1,412
1,337
1,086
2,749
45
43
35
88
Total cash costs
- R/kg
/ - $/oz
- produced
101,844
98,058
91,710
100,157
408
405
404
407
Total production costs
- R/kg
/ - $/oz
- produced
137,998
129,199
99,421
134,077
553
534
438
544
PRODUCTIVITY PER EMPLOYEE
Target
Target
- g
/ - oz
688
651
1,164
669
22.10
20.93
37.42
21.52
Actual
- g
/ - oz
988
756
745
869
31.75
24.30
23.96
27.93
FINANCIAL RESULTS (MILLION)
Gold income
Gold income
(150)
250
148
100
(18)
33
21
15
Cost of sales
195
165
107
360
25
22
15
47
Cash operating costs
122
93
85
215
16
12
12
28
Other cash costs
22
18
12
40
3
2
2
5
Total cash costs
144
111
96
255
19
15
14
33
Rehabilitation and other non-cash costs
(1)
1
-
-
-
-
-
-
Production costs
143
113
96
255
18
15
14
33
Amortisation of tangible assets
52
34
8
86
7
5
1
11
Inventory change
-
19
3
19
-
3
-
3
(345)
85
41
(260)
(43)
11
6
(32)
Realised non-hedge derivatives and other commodity contracts
-
-
-
-
-
-
-
-
(345)
85
41
(260)
(43)
11
6
(32)
Add back accelerated settlement of non-hedge derivatives
402
-
-
402
51
-
-
51
57
85
41
141
7
11
6
18
Capital expenditure
3
6
6
9
-
1
1
1
Rounding of figures may result in computational discrepancies.
Rand / Metric
Dollar / Imperial
Gross (loss) profit excluding the effect of unrealised non-hedge
derivatives and other commodity contracts
derivatives and other commodity contracts
Adjusted gross profit normalised for accelerated settlement of
non-hedge derivatives
non-hedge derivatives
Mali
Quarter
Quarter
Quarter
Six months
Quarter
Quarter
Quarter
Six months
ended
ended
ended
ended
ended
ended
ended
ended
June
March
June
June
June
March
June
June
2008
2008
2007
2008
2008
2008
2007
2008
YATELA - Attributable 40%
OPERATING RESULTS
HEAP LEACH OPERATION
Mined
OPERATING RESULTS
HEAP LEACH OPERATION
Mined
- 000 tonnes
/ - 000 tons
1,148
1,023
1,703
2,171
1,265
1,128
1,877
2,393
Placed
1
- 000 tonnes
/ - 000 tons
276
294
337
570
305
324
371
629
Stripping ratio
- t (mined total-mined ore) / t mined ore
9.69
14.47
7.45
11.51
9.69
14.47
7.45
11.51
Yield
2
- g/t
/ - oz/t
3.48
2.17
5.14
2.80
0.102
0.063
0.150
0.082
Gold placed
3
- kg
/ - oz (000)
962
637
1,732
1,599
31
20
56
51
Gold produced
- kg
/ - oz (000)
465
532
1,036
997
15
17
33
32
Gold sold
- kg
/ - oz (000)
458
588
996
1,046
15
19
32
34
Total cash costs
- R/kg
/ - $/oz
- produced
142,633
125,581
52,961
133,529
573
522
232
546
Total production costs
- R/kg
/ - $/oz
- produced
149,633
135,250
60,858
141,954
601
563
267
581
PRODUCTIVITY PER EMPLOYEE
Target
Target
- g
/ - oz
899
577
1,166
738
28.91
18.56
37.49
23.74
Actual
- g
/ - oz
540
620
1,335
580
17.37
19.94
42.92
18.65
FINANCIAL RESULTS (MILLION)
Gold income
Gold income
(39)
107
137
68
(5)
14
19
10
Cost of sales
69
79
61
147
9
11
9
19
Cash operating costs
59
59
44
118
8
8
6
15
Other cash costs
7
8
11
15
1
1
1
2
Total cash costs
66
67
55
133
9
9
8
17
Rehabilitation and other non-cash costs
-
1
1
-
-
-
-
-
Production costs
66
67
56
134
9
9
8
18
Amortisation of tangible assets
3
4
7
8
-
1
1
1
Inventory change
(1)
7
(2)
6
-
1
-
1
(107)
28
76
(80)
(14)
4
11
(10)
Realised non-hedge derivatives and other commodity contracts
-
-
-
-
-
-
-
-
(107)
28
76
(80)
(14)
4
11
(10)
Add back accelerated settlement of non-hedge derivatives
134
-
-
134
17
-
-
17
26
28
76
54
3
4
11
7
Capital expenditure
5
5
5
9
1
1
1
1
1
Tonnes / Tons placed on to leach pad.
2
Gold placed / tonnes (tons) placed.
3
Gold placed into leach pad inventory.
Rounding of figures may result in computational discrepancies.
Rand / Metric
Dollar / Imperial
Gross (loss) profit excluding the effect of unrealised non-hedge
derivatives and other commodity contracts
derivatives and other commodity contracts
Adjusted gross profit normalised for accelerated settlement of
non-hedge derivatives
non-hedge derivatives
Namibia
Quarter
Quarter
Quarter
Six months
Quarter
Quarter
Quarter
Six months
ended
ended
ended
ended
ended
ended
ended
ended
June
March
June
June
June
March
June
June
2008
2008
2007
2008
2008
2008
2007
2008
NAVACHAB
OPERATING RESULTS
OPEN-PIT OPERATION
Volume mined
OPERATING RESULTS
OPEN-PIT OPERATION
Volume mined
- 000 bcm
/ - 000 bcy
756
615
685
1,371
989
804
896
1,793
Mined
- 000 tonnes
/ - 000 tons
1,954
1,641
1,729
3,595
2,154
1,809
1,906
3,963
Treated
- 000 tonnes
/ - 000 tons
345
358
401
703
381
395
442
775
Stripping ratio
- t (mined total-mined ore) / t mined ore
6.46
9.65
4.16
7.64
6.46
9.65
4.16
7.64
Yield
- g/t
/ - oz/t
1.46
1.31
1.55
1.38
0.042
0.038
0.045
0.040
Gold produced
- kg
/ - oz (000)
503
469
621
972
16
15
20
31
Gold sold
- kg
/ - oz (000)
506
461
641
967
16
15
21
31
Total cash costs
- R/kg
/ - $/oz
- produced
149,421
118,198
79,443
134,355
599
490
349
546
Total production costs
- R/kg
/ - $/oz
- produced
161,796
142,749
95,850
152,605
649
591
421
621
PRODUCTIVITY PER EMPLOYEE
Target
Target
- g
/ - oz
477
436
499
457
15.34
14.03
16.05
14.69
Actual
- g
/ - oz
365
361
621
363
11.75
11.59
19.96
11.67
FINANCIAL RESULTS (MILLION)
Gold income
Gold income
17
84
88
101
2
11
12
14
Cost of sales
83
62
62
145
11
8
9
19
Cash operating costs
71
52
46
123
9
7
6
16
Other cash costs
4
4
3
8
1
-
-
1
Total cash costs
75
55
49
131
10
7
7
17
Rehabilitation and other non-cash costs
-
-
-
-
-
-
-
-
Production costs
75
55
49
131
10
7
7
17
Amortisation of tangible assets
6
12
10
18
1
2
1
2
Inventory change
1
(5)
2
(3)
-
(1)
-
-
(66)
22
26
(44)
(8)
3
4
(5)
Realised non-hedge derivatives and other commodity contracts
-
-
-
-
-
-
-
-
(66)
22
26
(44)
(8)
3
4
(5)
Add back accelerated settlement of non-hedge derivatives
67
-
-
67
8
-
-
8
1
22
26
23
-
3
4
3
Capital expenditure
32
14
6
47
4
2
1
6
Rounding of figures may result in computational discrepancies.
Rand / Metric
Dollar / Imperial
Gross (loss) profit excluding the effect of unrealised non-hedge
derivatives and other commodity contracts
derivatives and other commodity contracts
Adjusted gross profit normalised for accelerated settlement of
non-hedge derivatives
non-hedge derivatives
Tanzania
Quarter
Quarter
Quarter
Six months
Quarter
Quarter
Quarter
Six months
ended
ended
ended
ended
ended
ended
ended
ended
June
March
June
June
June
March
June
June
2008
2008
2007
2008
2008
2008
2007
2008
GEITA
OPERATING RESULTS
OPEN-PIT OPERATION
Volume mined
OPEN-PIT OPERATION
Volume mined
- 000 bcm
/ - 000 bcy
4,793
5,443
6,332
10,236
6,269
7,120
8,283
13,389
Mined
- 000 tonnes
/ - 000 tons
12,631
14,316
16,432
26,947
13,923
15,780
18,113
29,704
Treated
- 000 tonnes
/ - 000 tons
1,031
1,193
1,155
2,224
1,136
1,315
1,273
2,451
Stripping ratio
- t (mined total-mined ore) / t mined ore
7.47
10.72
11.33
8.94
7.47
10.72
11.33
8.94
Yield
- g/t
/ - oz/t
2.24
1.66
2.21
1.93
0.065
0.048
0.065
0.056
Gold produced
- kg
/ - oz (000)
2,309
1,984
2,553
4,293
74
64
82
138
Gold sold
- kg
/ - oz (000)
2,133
1,860
2,340
3,993
69
60
75
128
Total cash costs
- R/kg
/ - $/oz
- produced
157,611
174,653
76,486
165,485
630
717
337
670
Total production costs
- R/kg
/ - $/oz
- produced
207,991
232,677
110,139
219,397
832
954
485
889
PRODUCTIVITY PER EMPLOYEE
Target
Target
- g
/ - oz
449
356
853
402
14.44
11.46
27.41
12.93
Actual
- g
/ - oz
386
317
433
351
12.42
10.20
13.92
11.29
FINANCIAL RESULTS (MILLION)
Gold income
Gold income
1,426
445
167
1,872
181
59
24
240
Cost of sales
416
441
242
857
54
58
34
112
Cash operating costs
342
328
180
670
44
43
26
87
Other cash costs
14
13
11
27
2
2
2
4
Total cash costs
356
340
191
697
46
45
27
91
Rehabilitation and other non-cash costs
-
11
-
11
-
1
-
1
Production costs
356
352
191
708
46
46
27
92
Amortisation of tangible assets
116
104
86
220
15
14
12
29
Inventory change
(57)
(15)
(34)
(71)
(7)
(2)
(5)
(9)
1,010
4
(75)
1,015
128
1
(11)
128
Realised non-hedge derivatives and other commodity contracts
(1,537)
(102)
156
(1,639)
(194)
(14)
22
(207)
(526)
(98)
81
(624)
(66)
(13)
11
(79)
Add back accelerated settlement of non-hedge derivatives
491
-
-
491
62
-
-
62
(36)
(98)
81
(133)
(4)
(13)
11
(17)
Capital expenditure
200
25
34
225
26
3
5
29
Rounding of figures may result in computational discrepancies.
Rand / Metric
Dollar / Imperial
Gross (loss) profit excluding the effect of unrealised non-hedge
derivatives and other commodity contracts
derivatives and other commodity contracts
Adjusted (loss) gross profit normalised for accelerated settlement
of non-hedge derivatives
of non-hedge derivatives
USA
Quarter
Quarter
Quarter
Six months
Quarter
Quarter
Quarter
Six months
ended
ended
ended
ended
ended
ended
ended
ended
June
March
June
June
June
March
June
June
2008
2008
2007
2008
2008
2008
2007
2008
CRIPPLE CREEK & VICTOR J.V.
OPERATING RESULTS
HEAP LEACH OPERATION
Mined
HEAP LEACH OPERATION
Mined
- 000 tonnes
/ - 000 tons
11,957
11,532
12,139
23,489
13,181
12,711
13,381
25,892
Placed
1
- 000 tonnes
/ - 000 tons
5,826
5,071
5,280
10,897
6,422
5,590
5,821
12,012
Stripping ratio
- t (mined total-mined ore) / t mined ore
1.10
1.16
1.47
1.13
1.10
1.16
1.47
1.13
Yield
2
- g/t
/ - oz/t
0.46
0.54
0.50
0.50
0.013
0.016
0.015
0.014
Gold placed
3
- kg
/ - oz (000)
2,665
2,749
2,638
5,414
86
88
85
174
Gold produced
- kg
/ - oz (000)
1,849
1,791
2,142
3,639
59
58
69
117
Gold sold
- kg
/ - oz (000)
1,842
1,825
2,015
3,667
59
59
65
118
Total cash costs
4
- R/kg
/ - $/oz
- produced
75,058
68,916
56,679
72,036
301
284
249
293
Total production costs
- R/kg
/ - $/oz
- produced
100,506
94,354
78,462
97,479
403
389
345
396
PRODUCTIVITY PER EMPLOYEE
Target
Target
- g
/ - oz
2,196
1,747
2,467
1,971
70.60
56.16
79.32
63.38
Actual
- g
/ - oz
1,746
1,750
2,511
1,748
56.12
56.28
80.72
56.20
FINANCIAL RESULTS (MILLION)
Gold income
Gold income
782
369
187
1,151
100
48
26
148
Cost of sales
186
169
168
355
24
22
24
46
Cash operating costs
248
212
178
460
32
28
25
60
Other cash costs
11
10
5
21
1
1
1
3
Total cash costs
259
222
183
480
33
29
26
63
Rehabilitation and other non-cash costs
9
11
3
20
1
1
-
3
Production costs
268
232
186
500
35
31
26
65
Amortisation of tangible assets
57
54
53
111
7
7
8
15
Inventory change
(139)
(117)
(71)
(257)
(18)
(16)
(10)
(33)
596
200
19
796
76
26
3
102
Realised non-hedge derivatives and other commodity contracts
(896)
(33)
92
(929)
(113)
(4)
13
(117)
(300)
167
111
(133)
(37)
22
16
(15)
Add back accelerated settlement of non-hedge derivatives
446
-
-
446
56
-
-
56
146
167
111
313
19
22
16
41
Capital expenditure
50
90
26
140
6
12
4
18
1
Tonnes / Tons placed onto leach pad.
2
Gold placed / tonnes (tons) placed.
3
Gold placed into leach pad inventory.
4
Total cash cost calculation includes inventory change.
Rounding of figures may result in computational discrepancies.
Rand / Metric
Dollar / Imperial
Gross (loss) profit excluding the effect of unrealised non-hedge
derivatives and other commodity contracts
derivatives and other commodity contracts
Adjusted gross profit normalised for accelerated settlement of
non-hedge derivatives
non-hedge derivatives
Certain statements contained in this document, including, without limitation, those concerning the economic outlook for the gold mining industry, expectations
regarding gold prices and production, the completion and commencement of commercial operations of certain of AngloGold Ashanti’s exploration and production
projects, and its liquidity and capital resources and expenditure, contain certain forward-looking statements regarding AngloGold Ashanti’s operations, economic
performance and financial condition. Although AngloGold Ashanti believes that the expectations reflected in such forward-looking statements are reasonable, no
assurance can be given that such expectations will prove to have been correct. Accordingly, results could differ materially from those set out in the forward-looking
statements as a result of, among other factors, changes in economic and market conditions, success of business and operating initiatives, changes in the regulatory
environment and other government actions, fluctuations in gold prices and exchange rates, and business and operational risk management. AngloGold Ashanti
undertakes no obligation to update publicly or release any revisions to these forward-looking statements to reflect events or circumstances after the date of the annual
report on Form 20-F or to reflect the occurrence of unanticipated events. All subsequent written or oral forward-looking statements attributable to AngloGold Ashanti or
any person acting on its behalf are qualified by the cautionary statements herein. For a discussion on such risk factors, refer to AngloGold Ashanti's annual report on
Form 20-F for the year ended 31 December 2007 dated 19 May 2008, which was filed with the Securities and Exchange Commission (SEC) on 19 May 2008.
regarding gold prices and production, the completion and commencement of commercial operations of certain of AngloGold Ashanti’s exploration and production
projects, and its liquidity and capital resources and expenditure, contain certain forward-looking statements regarding AngloGold Ashanti’s operations, economic
performance and financial condition. Although AngloGold Ashanti believes that the expectations reflected in such forward-looking statements are reasonable, no
assurance can be given that such expectations will prove to have been correct. Accordingly, results could differ materially from those set out in the forward-looking
statements as a result of, among other factors, changes in economic and market conditions, success of business and operating initiatives, changes in the regulatory
environment and other government actions, fluctuations in gold prices and exchange rates, and business and operational risk management. AngloGold Ashanti
undertakes no obligation to update publicly or release any revisions to these forward-looking statements to reflect events or circumstances after the date of the annual
report on Form 20-F or to reflect the occurrence of unanticipated events. All subsequent written or oral forward-looking statements attributable to AngloGold Ashanti or
any person acting on its behalf are qualified by the cautionary statements herein. For a discussion on such risk factors, refer to AngloGold Ashanti's annual report on
Form 20-F for the year ended 31 December 2007 dated 19 May 2008, which was filed with the Securities and Exchange Commission (SEC) on 19 May 2008.
Administrative
information
A
NGLO
G
OLD
A
SHANTI
L
IMITED
Registration No. 1944/017354/06
Incorporated in the Republic of South
Africa
Incorporated in the Republic of South
Africa
Share codes:
ISIN: ZAE000043485
JSE:
JSE:
ANG
LSE:
AGD
NYSE:
AU
ASX:
AGG
GhSE (Shares):
AGA
GhSE (GhDS):
AAD
Euronext Paris:
VA
Euronext Brussels:
ANG
JSE Sponsor:
UBS
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
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
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
(P O Box 2665)
Accra
Ghana
Telephone: +233 21 772190
Fax: +233 21 778155
Gold House
Patrice Lumumba Road
(P O Box 2665)
Accra
Ghana
Telephone: +233 21 772190
Fax: +233 21 778155
United Kingdom Secretaries
St James's Corporate Services Limited
6 St James's Place
London SW1A 1NP
England
Telephone: +44 20 7499 3916
Fax: +44 20 7491 1989
E-mail: jane.kirton@corpserv.co.uk
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
M Cutifani
~
(Chief Executive Officer)
S Venkatakrishnan *
Non-Executive
R P Edey * (Chairman)
Dr T J Motlatsi (Deputy Chairman)
F B Arisman
R P Edey * (Chairman)
Dr T J Motlatsi (Deputy Chairman)
F B Arisman
#
R E Bannerman^
J H Mensah^
W A Nairn
Prof W L Nkuhlu
S M Pityana
J H Mensah^
W A Nairn
Prof W L Nkuhlu
S M Pityana
* British
#
American
^Ghanaian
~ Australian
Officers
Company Secretary: Ms L Eatwell
Company Secretary: Ms L Eatwell
Contacts
Himesh Persotam
Telephone: +27 11 637 6647
Fax: +27 11 637 6400
E-mail:
hpersotam@AngloGoldAshanti.com
Telephone: +27 11 637 6647
Fax: +27 11 637 6400
E-mail:
hpersotam@AngloGoldAshanti.com
General E-mail enquiries
investors@AngloGoldAshanti.com
investors@AngloGoldAshanti.com
AngloGold Ashanti website
http://www.AngloGoldAshanti.com
http://www.AngloGoldAshanti.com
PRINTED BY INCE (PTY) LIMITED
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
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
P O Box 82
The Pavilions
Bridgwater Road
Bristol BS99 7NH
England
Telephone: +44 870 889 3177
Fax: +44 870 703 6119
Computershare Investor Services PLC
P O Box 82
The Pavilions
Bridgwater Road
Bristol BS99 7NH
England
Telephone: +44 870 889 3177
Fax: +44 870 703 6119
Australia
Computershare Investor Services Pty
Limited
Level 2, 45 St George's Terrace
Perth, WA 6000
(GPO Box D182 Perth, WA 6840)
Australia
Telephone: +61 8 9323 2000
Telephone: 1300 55 7010 (in Australia)
Fax: +61 8 9323 2033
Computershare Investor Services Pty
Limited
Level 2, 45 St George's Terrace
Perth, WA 6000
(GPO Box D182 Perth, WA 6840)
Australia
Telephone: +61 8 9323 2000
Telephone: 1300 55 7010 (in Australia)
Fax: +61 8 9323 2033
Ghana
NTHC Limited
Martco House
Off Kwame Nkrumah Avenue
POBox K1A 9563 Airport
Accra
Ghana
Telephone: +233 21 238492-3
Fax: +233 21 229975
NTHC Limited
Martco House
Off Kwame Nkrumah Avenue
POBox K1A 9563 Airport
Accra
Ghana
Telephone: +233 21 238492-3
Fax: +233 21 229975
ADR Depositary
The Bank of New York ("BoNY")
Investor Services, P O Box 11258
Church Street Station
New York, NY 10286-1258
United States of America
Telephone: +1 888 269 2377 (Toll free
in USA) or +9 610 382 7836 outside
USA) E-mail: shareowners@bankofny.com
Website: http://www.stockbny.com
The Bank of New York ("BoNY")
Investor Services, P O Box 11258
Church Street Station
New York, NY 10286-1258
United States of America
Telephone: +1 888 269 2377 (Toll free
in USA) or +9 610 382 7836 outside
USA) E-mail: shareowners@bankofny.com
Website: http://www.stockbny.com
Global BuyDIRECT
SM
BoNY maintains a direct share purchase
and dividend reinvestment plan for
ANGLOGOLD ASHANTI.
and dividend reinvestment plan for
ANGLOGOLD ASHANTI.
Telephone: +1-888-BNY-ADRS
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this
report to be signed on its behalf by the undersigned, thereunto duly authorized.
AngloGold Ashanti Limited
Date: July 31, 2008
By:
/s/ L
Eatwell
Name: L EATWELL
Title: Company Secretary
Title: Company Secretary