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Am Ftse 100 D | LSE:100D | London | Exchange Traded Fund |
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TIDMAGD Report to shareholders for the quarter and year ended 31 December 2009 Group results for the quarter.... Record adjusted headline earnings of $228m, or 62 US cents per share Production of 1.182Moz, 2% better than guidance TauTona back in production after successful inspection and repair Received gold price, excluding hedge buy-back costs, increased by 14% in US dollar terms, discount of 6.4% to spot achieved Improvement on all benchmark safety indicators Geita and Obuasi continue turnaround Hedge commitments fall to 3.9Moz .... and the year Gold production of 4.6Moz, at the top end of guidance Total cash costs of $514/oz, better than guidance Net debt falls to $868m, creating further financial flexibility Project One management intervention gaining traction across portfolio Uranium production of 1.44Mlbs exceeds guidance by 3% Hedge restructuring cuts commitments by 2.0Moz to less than one year's production Safety stoppages impact South African production Tropicana project in Australia progresses to a bankable feasibility study Final dividend of 70 South African cents per share (approximately 9.10 US cents per share), declared, resulting in a total dividend of 130 South African cents per share (approximately 16.75 US cents per share) for the 2009 year Quarter Year Quarter Year ended ended ended ended ended ended ended ended Dec Sep Dec Dec Dec Sep Dec Dec 2009 2009 2009 2008 2009 2009 2009 2008 SA rand / Metric US dollar / Imperial Operating review Gold Produced - kg / oz (000) 36,767 36,925 143,049 154,958 1,182 1,187 4,599 4,982 Price received - R/kg / $/oz 247,985 61,095 201,805 130,522 1,029 261 751 485 Price received excluding hedge buy-back costs - R/kg / $/oz 247,985 225,388 246,048 185,887 1,029 906 925 702 Total cash costs - R/kg / $/oz 143,596 133,274 136,595 117,462 598 534 514 444 Total production costs - R/kg / $/oz 178,379 166,355 171,795 150,149 743 667 646 567 Financial review Adjusted gross profit (loss) - Rm / $m 2,521 (4,110) 3,686 (2,945) 337 (510) 412 (384) Adjusted gross profit excluding hedge buy-back costs - Rm / $m 2,521 2,205 10,001 5,072 337 287 1,208 626 Profit (loss) attributable to equity shareholders - Rm / $m 3,179 (8,245) (2,762) (16,105) 424 (1,042) (320) (1,195) - cents/share 867 (2,286) (765) (5,077) 116 (289) (89) (377) Adjusted headline earnings (loss) - Rm / $m 1,706 (4,757) (211) (7,197) 228 (596) (50) (897) - cents/share 466 (1,319) (58) (2,269) 62 (165) (14) (283) Adjusted headline earnings (loss) excluding hedge buy-back costs - Rm / $m 1,706 1,249 5,795 69 228 162 708 19 - cents/share 466 346 1,604 22 62 45 196 6 Cash flow from operating activities excluding hedge buy-back costs - Rm / $m 3,610 2,185 10,096 5,387 465 336 1,299 584 Capital expenditure - Rm / $m 2,275 1,842 8,726 9,905 293 232 1,027 1,201 $ represents US dollar, unless Rounding of figures may result in otherwise stated. computational discrepancies. Operations at a glance for the quarter ended 31 December 2009 Adjusted gross profit (loss) excluding hedge Production Total cash costs buy-back costs % % $m oz (000) Variance 1 $/oz Variance 1 $m Variance 1 SOUTHERN AFRICA 448 (7) 575 10 123 5 South Africa Great Noligwa 34 (19) 1,014 11 (8) (1) Kopanang 102 11 400 (10) 46 19 Moab Khotsong 73 18 489 2 13 5 Tau Lekoa 34 10 732 (8) 10 7 Surface Operations 36 (10) 459 13 19 (2) Mponeng 127 2 397 6 70 10 Savuka 2 100 4,062 (59) (8) 3 TauTona 25 (66) 1,443 188 (25) (40) Namibia Navachab 17 6 730 19 5 2 CONTINENTAL AFRICA 401 3 665 8 118 36 Ghana Iduapriem 54 4 515 4 26 10 Obuasi 97 5 567 (15) 26 18 Guinea Siguiri - Attributable 85% 77 (3) 636 27 30 4 Mali Morila - Attributable 40% 2 31 (3) 656 17 13 2 Sadiola - Attributable 41% 2,3 32 - 640 20 12 2 Yatela - Attributable 40% 2 28 27 382 74 17 3 Tanzania Geita 81 (2) 1,055 19 (13) (5) Non-controlling interests, exploration and other 6 1 AUSTRALASIA 107 5 863 32 8 (3) Australia Sunrise Dam 107 5 836 29 11 (1) Exploration and other (3) (2) SOUTH AMERICA 170 8 386 11 93 6 Argentina Cerro Vanguardia - Attributable 92.50% 47 - 339 1 19 (10) Brazil AngloGold Ashanti Brasil Mineração 97 8 419 26 46 5 Serra Grande - Attributable 50% 27 35 337 (24) 14 7 Non-controlling interests, exploration and other 14 4 NORTH AMERICA 56 4 424 4 27 6 United States of America Cripple Creek & Victor 56 4 420 7 28 6 Other (1) - OTHER 11 9 Sub-total 1,182 - 598 12 380 59 Less equity accounted investments (43) (8) AngloGold Ashanti 337 50 1 Variance December 2009 quarter on September 2009 quarter - increase (decrease). 2 Equity accounted joint ventures. 3. Effective 29 December 2009, AngloGold Ashanti increased its interest in Sadiola from 38% to 41%. Rounding of figures may result in computational discrepancies. Financial and Operating Report OVERVIEW FOR THE QUARTER SAFETY AngloGold Ashanti's focus on improving safety standards over the long-term yielded encouraging results during the quarter with a 7% improvement in the overall lost time injury rate. Moab Khotsong operated without a fatality for 1 million shifts, an overwhelmingly positive result for the South African operating teams. Safety stoppages - both those enforced by the state mine inspector and implemented by AngloGold Ashanti's management - remained a key theme during the three-month period, with 69 shifts lost at the South African operations. This figure includes 40 shifts lost at TauTona, which remained closed for much of the fourth quarter for a thorough inspection of the entire shaft infrastructure. The review yielded no material deficiencies in the underground steelwork and the mine was successfully reopened in January. Tragically, one miner was fatally injured at Mponeng, in South Africa and another died in a trucking accident at Siguiri, in Guinea. These incidents underscore the importance of implementing the company's Safety Transformation Blueprint in 2009, a comprehensive strategy for the next step change in AngloGold Ashanti's overall safety performance that will take the company toward its goal of eliminating lost time injuries. OPERATING REVIEW Production was broadly in line with the previous quarter at 1.18Moz, which was better than the guidance of 1.16Moz. The slightly lower output quarter-on-quarter reflects the management enforced stoppage at TauTona, remedial work underway at Savuka for part of the year and continued safety related stoppages. Total cash costs rose 12% to $598/oz, some 1% above market guidance due mainly to accounting for deferred stripping charges and a stronger-than-anticipated exchange rate. Sustained strength in local operating currencies in Brazil, Australia and South Africa continued to erode the benefit of a higher dollar gold price. The Australian dollar was the best performer of this group, gaining 9% over the period, while the Brazilian real rose 7% and the rand 4%. Southern African operations produced 448,000oz in the three months ended December at a total cash cost of $575/oz, compared to 483,000oz at $525/oz in the previous quarter. TauTona's stoppage was the chief contributor to lower production from the West Wits operations as the number of shifts lost to safety-related interruptions more than doubled. Great Noligwa's production also declined sharply as the mine's operations were scaled back in preparation for management interventions designed to address the steep escalation in operating costs that took place during 2009. Grade improvements contributed towards increased production and lower costs at Kopanang and Tau Lekoa. Continental Africa's production improved to 401,000oz in the three months ended December at a total cash cost of $665/oz, from 391,000oz at $615/oz in the previous quarter. Production improved at three of the seven operations and was unchanged at Sadiola. Obuasi's operating performance continued to improve during the quarter, as a result of continued focus on grade control. The company received an insurance settlement covering the previous quarter's underground flooding. At Geita where operational improvements are underway as part of the company's business improvement initiatives, volumes mined increased by 14%. Total cash costs, however, were distorted by stripping charges during the quarter. In Australasia, Sunrise Dam's production rose to 107,000oz at a total cash cost of $836/oz, from 102,000oz at $647/oz in the prior quarter. Total cash costs have been inflated by deferred waste stripping charges during the quarter. In North America, Cripple Creek & Victor's (CC&V) production rose to 56,000oz at a total cash cost of $420/oz for the three months to December, from 54,000oz at $394/oz in the previous quarter. The operation has stabilised under its new leadership, and is now well positioned for recovery during 2010. South America's production improved to 170,000oz at a total cash cost of $386/ oz in the three months ended December, from 157,000oz at $349/oz. AngloGold Brasil Mineração delivered an especially strong performance, boosting output from the Cuiabá and Lamego operations which helped offset the impact on costs of the continued strengthening of the Brazilian real. Cerro Vanguardia held its production and costs steady over the quarter, making it the most efficient operation in the group. FINANCIAL AND CORPORATE REVIEW Adjusted headline earnings for the quarter rose to a record $228m, from a loss of $596m in the prior quarter, when significant restructuring of the hedge book was undertaken. The previous quarter's profit, excluding the hedge buy-back costs, was $162m. The average realised gold price for the quarter was $1,029/oz, representing a 6.4% discount to the average spot price of $1,100/oz. Delivery into hedge contracts continued at a slightly quicker pace than anticipated, with overall hedge commitments at the end of 2009 of 3.9Moz. This is significantly less than a year's production and is consistent with the stated intention of increasing AngloGold Ashanti's exposure to the spot gold price. Profit attributable to equity shareholders was $424m for the quarter, compared to a loss of $1.04bn during the prior period. Two key components of this change were the partial reversal of asset impairments at Geita, Obuasi and Iduapriem after taking into account the higher gold price and revised mining plans across the operations, as well as the loss in the prior quarter relating to the hedge buy-back and the normal sale exempted contracts brought on to the balance sheet. EXPLORATION Total exploration spend during the quarter was $71m, an increase of 30% over the previous quarter. Extensive greenfields exploration work was undertaken in Western Australia, throughout the tenement package near the Tropicana Gold Project. While the approval process for recommencement of drilling at La Colosa continued with regional government officials, exploration drilling and regional reconnaissance work got underway on alternative project sites in the country. Exploration drilling also resumed during November at the Mongbwalu resource in the Democratic Republic of the Congo, while additional mapping was done southwest of the site. ANNUAL REVIEW Adjusted headline earnings, normalised to exclude the $758m after tax cost of restructuring the hedge book in the third quarter, was $708m for the year. The company reported an adjusted headline loss of $50m, when taking the hedge restructuring cost into account. A dividend of 70 South African cents (approximately 9.10 US cents per share) was declared for the six months ended 31 December 2009, an increase of 17% from the previous declaration, taking the total dividend for the year to R1.30 (approximately 16.75 US cents) per share, representing a 30% increase over the 2008 dividend. The statement of financial position was significantly strengthened during the year with the raising of a $732.5m convertible bond in May, the proceeds from which were used to repay debt and an issue of new shares for $278m, net of issue expenses, in cash in September, to fund the initial purchase of a 35% stake in the Kibali gold project (formerly Moto gold project). AngloGold Ashanti's stake was later increased to 45%, with Randgold Resources controlling another 45% and the Government of the Democratic Republic of the Congo holding 10%. Net debt at 31 December 2009 was $868m, some $415m lower than the net debt position as at 31 December 2008. Production in 2009 declined 8% to 4.60Moz, in line with revised guidance. Southern Africa's production declined by 14% to 1.86Moz, reflecting the increased number of safety-related stoppages resulting from more stringent policing of safety regulations as well as the proactive approach by the company's managers to averting accidents. Production during the year from Continental Africa fell by 3% to 1.52Moz as improvements at Geita and Obuasi offset declines from Sadiola and Morila. In South America, production jumped by 6% to 598,000oz, with a strong turnaround from Argentina, the chief contributor. CC&V in North America. suffered from below-par recoveries from the leach pad, resulting in a 16% drop in production to 218,000oz. Total cash costs were better than forecast, rising 16% to $514/oz. The strengthening of the local operating currencies against the dollar during the course of the year was a dominant theme for operations in South Africa, Australia and Brazil, increasing dollar-denominated operating costs in those regions. Rising power prices were also a key factor in South Africa, where management continued to focus its efforts on reducing electricity consumption in order to mitigate higher tariffs. Robbie Lazare, formerly the executive vice president of human resources and a previous head of AngloGold Ashanti's Africa's underground operations, has been appointed to lead a task team that will optimise the production and cost profile of the South African mines. AngloGold Ashanti's overall safety performance in 2009 showed improvements in the benchmark Lost Time Injury Frequency Rate (LTIFR), which was 10% better than the previous year at 6.57 per million hours worked. Tragically, 16 fatal accidents were reported during the year. That compared to 34 in 2007 and 14 in 2008, when the "Safety is Our First Value" initiative was first introduced. This encouraging improvement in safety was demonstrated by Great Noligwa's achievement, during the third quarter, of 2 million fatality free shifts. This is the first time Great Noligwa has reached this milestone in its 40-year history. AngloGold Ashanti remains committed to achieving zero fatalities. The year was characterised by the progress made in the turnaround of key assets, though there remains much to do to realise the full potential of the portfolio. Initial implementation of AngloGold Ashanti's business improvement programme yielded encouraging results at Geita, the Mponeng plant, Sunrise Dam, Siguiri and AngloGold Ashanti Brasil Mineração. This programme is the technical component of Project One, the overarching strategy which will marry the company's technical and planning capabilities with a more scientific and accountability-based approach to human resources management. The complexity of this programme is evidenced by its $35m budgeted cost and the 130-member, multi-disciplinary support team required for its implementation across the organisation. The potential value release, already demonstrated at the pilot sites, is many times that figure. In 2010, the business improvement programme will be rolled out to an additional 12 sites, including: Mponeng and Kopanang underground mines; the Iduapriem plant; Obuasi mine and plant; Cerro Vanguardia and Serra Grande mine and plants; the CC&V mine; TauTona and Moab Khotsong underground mines; Navachab mine and plant; Great Noligwa uranium plant; and the Kopanang plant. AngloGold Ashanti concluded the sale of Boddington during 2009 which resulted in the transfer of about 6.7Moz of Ore Reserves to Newmont Mining Corporation. After accounting for the Boddington sale, AngloGold Ashanti recorded a 5% increase in Ore Reserves from 68.2Moz to 71.4Moz. AngloGold Ashanti's share of the Kibali Ore Reserves, acquired with the purchase of a 45% share in Kibali gold project during the year, increased to 4.2Moz from the 2.48Moz attributable share in the initial study conducted by the previous owner. Mineral Resources declined by 1% to 229.1Moz after the transfer of 11.9Moz for the Boddington sale. The Kibali gold project added 8.9Moz to the overall Mineral Resource, offset by a 7.8Moz reduction at Obuasi due to a change in the underground model and a reassessment of surface sources, as well as a 3.2Moz drop at the Vaal River Surface Operations due to the lower uranium price. OUTLOOK First quarter production is expected to be 1.07Moz at a total cash cost of approximately $660/oz. This assumes an oil price of $75/barrel and average exchange rates of R7.70/$, BRL1.70/$, A$/$0.93 and Argentinean peso 3.90/$. AngloGold Ashanti's annual production guidance for 2010 is 4.5Moz to 4.7Moz. This reflects the sale of Tau Lekoa, cautious assumptions regarding the frequency of safety related stoppages in South Africa, and from CC&V as the grade stabilises in 2010 which affected recoveries from the leach pad in 2009. Capital expenditure for 2010 is estimated at US$1.0bn to US$1.1bn. ONE-YEAR FORECAST - 2010 For the year ended 31 December Forecast Expected production total cash 000 oz cost $/oz (1) South Africa (2)(3) 1,722 - 1,800 553 - 571 Namibia 96 - 100 600 - 628 Ghana 593 - 619 562 - 588 Guinea 295 - 308 527 - 552 Mali 265 - 277 663 - 695 Tanzania 339 - 354 833 - 872 Australia 381 - 398 901 - 943 Argentina 176 - 184 411 - 430 Brazil 419 - 437 424 - 444 United States of America 214 - 223 480 - 503 AngloGold Ashanti 4,500 - 4,700 590 - 615 Based on the following assumptions: R7.70/$, A$/$0.93, BRL1.70/$ and Argentinean peso 3.90/$; oil at $75 per barrel. The year on year increase in total cash costs is due to the unwinding of previously incurred deferred stripping charges, implementation of royalties in South Africa, higher power tariffs, escalation and stronger local operating currencies. In South Africa, production assumes stable power supply from Eskom and 38 South African cents/Kwh. An increase in power tariffs of 35% has been considered. Excludes Tau Lekoa AngloGold Ashanti anticipates a discount to the spot gold price of 8% to 10% based on a gold price of $950/oz to $1,250/oz OTHER ILLUSTRATIVE ESTIMATES - 2010 For the year ended 31 December $m Depreciation and amortisation 700 Corporate costs, marketing and business improvement 210 Expensed exploration and pre-feasibilities 216 Interest and finance charges 120 Review of the Gold Market 1. GOLD PRICE MOVEMENT AND INVESTMENT MARKETS Gold price data After breaching the psychologically significant $1,000/oz level for a brief period in the third quarter, the gold price traded comfortably above this mark for the entire fourth quarter during which it averaged $1,100/oz. This represented a 15% increase on the previous quarter. The price appreciated 26% from its opening levels of $872/oz at the beginning of 2009 to close the year at $1,102/oz. It was at the beginning of November that the rally was most pronounced, spurred by the Reserve Bank of India's purchase of 200t of bullion from the International Monetary Fund's sales quota. The purchase surprised the market as India had not been viewed as a likely buyer and it proved the catalyst that drove the price to new heights. The peak of $1,226/oz in early December corresponded with record combined investment holdings of 56.6Moz held by exchange traded funds and a record speculative long position on the COMEX division of the New York Mercantile Exchange and the Chicago Board of Trade of almost 33Moz. This rally did not, however, coincide with record lows in the dollar, as one might have expected. Instead, the dollar traded in a tight range between $1.47 and $1.51/Euro, helping propel gold to a record Euro812/oz. This upward march in prices took place against a backdrop of continued economic uncertainty. In December, fears over the creditworthiness of certain European member states resurfaced while Dubai flirted with default. This boosted the relative strength of the dollar, which gained another fillip from positive jobs data in the United States. The US dollar ended the quarter at $1.429/Euro, a 6% gain from its lows of the quarter. Gold meanwhile closed 10% off its quarterly high at $1,102/oz. Official Sector The central banks of Sri Lanka and Mauritius joined India in adding to their gold reserves during the quarter. The Mauritian central bank bought 2t from the IMF, while Sri Lanka said it had bought 10t of gold as part of an ongoing initiative to increase its reserves. Since the renewal of the Central Bank Gold Agreement in September, there have been only two tonnes of disposals from member signatories in the first quarter of this third agreement. Producer de-hedging Barrick Gold Corp eliminated the last of their hedge commitments during the fourth quarter following their announcement in August of their intention to do so. The completion of the hedge close-out which was announced on 1 December, required the purchase of about 5Moz. Currencies Emerging markets were the beneficiaries of strong metals and commodity prices and remained the focus of investors eager to earn yield. The South African rand continued its strengthening trend during the fourth quarter, shaking off a short-lived bout of weakness between late October and early November where it slipped by 10% against the dollar. The rand soon recouped these losses and averaged R7.47/$ during the fourth quarter, a further 4% appreciation on the previous quarter. The rand gained 21% against the dollar during the year. The Brazilian real also continued its appreciation against the greenback. Lawmakers in Brazil were sufficiently concerned about the effects of the stronger currency to levy a tax on foreign purchases of domestic stocks and securities. This did little to deter speculative inflows as the real gained an average 7% from the previous quarter. The currency gained 25% over the year. The Australian dollar rose to a peak of A$/$0.94, reflecting the healthy state of the economy. The Reserve Bank of Australia started tightening monetary policy, hiking rates 0.25% each month during the fourth quarter. The currency averaged A$/$0.91 for the fourth quarter, almost 10% stronger than its third quarter average. The A$ appreciated 28% over the course of 2009 against its US counterpart. 2. PHYSICAL DEMAND 2.1. Jewellery Sales While the negative trend of the first nine months continued in most major markets during the fourth quarter, there were some areas of growth around the festive season. The crucial Indian market remained under pressure in the fourth quarter although there was some good news. Gold imports during the period exceeded those of the same quarter a year earlier. India's gold jewellery trade benefitted from a relatively good Diwali, which is a traditional gifting occasion. Disposable income increased during the period after bonuses were paid across the massive Indian public sector. The strong Diwali sales are all the more heartening considering a difficult 2009 monsoon season, which depressed sales. The Rupee gold price remains very high at over INR17,500/oz, which continues to dampen demand. Consumers appear to have accepted the new, much higher, price floor but many are making only essential wedding purchases until the economy stabilises. Jewellers are following the trend prevalent among producers of fast moving consumer goods of decreasing the weight of product rather than raising prices. China continues to outperform other key jewellery markets. Still, sales in the fourth quarter were flat or slightly better than the same period in 2008. Consumers continue to prefer the investment appeal of pure gold jewellery. In covering the financial crisis, the Chinese media repeatedly featured stories on the gold price and consumers continue to take note, with 'smart' shoppers limiting their jewellery purchases to pure gold. The market in the United States finally experienced much-needed good news as fourth quarter jewellery sales beat expectations with a 7% year-on-year increase. Interestingly, the improvement in jewellery sales over the holiday season exceeded that of the luxury sector, another major laggard during the recession. The global economic recession continued to harm the Middle Eastern jewellery market. Egypt's jewellery sales slumped by as much as 32% year-on-year and the United Arab Emirates fell 30%. The crucial UAE tourist industry, which has been depressed throughout the year, showed a welcome improvement this quarter. This helped jewellery sales and left retailers more bullish about 2010, with many increasing inventories for the first time in months. In Saudi Arabia, fourth-quarter sales were depressed on the back of continued pressure on consumers resulting from the recession and also a weaker than normal Hajj period. Gold jewellery demand fell by approximately 35% year-on-year. 2.2. Investment Market Interestingly, at the end of 2009 gold investment demand exceeded gold jewellery demand for the first time since the gold price reached a record price of $850/oz in 1980. In India, the fourth quarter saw strong coin sales continue the trend established in the first three quarters of the year. Gold-based mutual funds also saw increased deposits. For many Indian consumers, who already hold substantial gold assets, there is no clear investment case for adding gold to their portfolios at the current high price. India is unique in this regard as it has a far bigger existing gold supply, held by a bigger pool of people, than any other gold market. The US market continued its rally with the case for gold investment gaining traction with both retail investors and institutions. The fourth quarter saw healthy demand for bars, coins and Exchange Traded Funds (ETFs). The GLD ETF represents approximately $66bn of direct investment in the gold market. There is now also talk of significant bar purchases by some of the larger buyers which are opting for bullion rather than paying the storage and management fees charged by the ETF issuers. China's retail gold investment outpaced jewellery demand with a 10% year-on-year gain in the fourth quarter. The traditional Chinese gold jewellery market is 24 carat, therefore jewellery demand - which includes an investment motivation - still exceeds gold investment demand by a factor of four to one. Gold investment demand in the Middle East remains the most moribund of all major regional markets. In the United Arab Emirates, the decline in coin and bar hoarding mirrors the decline in jewellery demand, with a 30% slump. Many jewellers and key retail investors did not stock bars or coins due to price volatility and low margins. In Egypt, bar and coin demand was poor, at an estimated 250kg during the quarter, while bullion imports were low. Scrap supply slowed despite the high gold price as traders were wary of price volatility. Hedge position As at 31 December 2009, the net delta hedge position was 3.49Moz or 108t (at 30 September 2009: 3.93Moz or 122t), representing a further reduction of 0.44Moz for the quarter. The total commitments of the hedge book as at 31 December 2009 was 3.9Moz or 121t, a reduction of 0.4Moz from the position as at 30 September 2009. The marked-to-market value of all hedge transactions making up the hedge positions was a negative $2.18bn (negative R16.18bn), increasing by $0.34bn (R2.35bn) over the quarter. This value was based on a gold price of $1,101.95/ oz, exchange rates of R7.4350/$ and A$/$0.8967 and the prevailing market interest rates and volatilities at that date. As at 16 February 2010, the marked-to-market value of the hedge book was a negative $2.11bn (negative R16.21bn), based on a gold price of $1,112.45/oz and exchange rates of R7.6910/$ and A$/$0.8952 and the prevailing market interest rates and volatilities at the time. These marked-to-market valuations are in no way predictive of the future value of the hedge position, nor of future impact on the revenue of the company. The valuation represents the theoretical cost of buying all hedge contracts at the time of valuation, at market prices and rates available at the time. The following table indicates the group's commodity hedge position at 31 December 2009 Year 2010 2011 2012 2013 2014 2015 Total US DOLLAR /GOLD Forward Amount * 60,000 122,500 119,500 91,500 *(41,642) contracts (oz) (435,142) US$/oz *$909 $227 $418 $477 $510 *$5,457 Put Amount 475,860 148,000 85,500 60,500 60,500 830,360 options (oz) sold US$/oz $929 $623 $538 $440 $450 $764 Call Amount 1,065,380 776,800 811,420 574,120 680,470 29,000 3,937,190 options (oz) sold US$/oz $619 $554 $635 $601 $604 $670 $605 RAND/GOLD Forward Amount ** **(40,000) contracts (oz) (40,000) ZAR/oz R7,223 R7,223 Put Amount 40,000 40,000 options (oz) sold ZAR/oz R7,475 R7,475 Call Amount 40,000 40,000 options (oz) sold ZAR/oz R8,175 R8,175 A DOLLAR/ GOLD Forward Amount 100,000 100,000 contracts (oz) A$/oz A$646 A$646 Call Amount 100,000 100,000 options (oz) purchased A$/oz A$712 A$712 *** Total Delta net gold: (oz) (436,666) (789,849) (863,406) (651,962) (719,638) (26,258) (3,487,779) Committed (630,238) (836,800) (933,920) (693,620) (771,970) (29,000) (3,895,548) (oz) * Represents a net long position and net short US Dollars resulting from both forward sales and purchases for the period. ** Represents a net long position resulting from both forward sales and purchases. *** The Delta of the hedge position indicated above is the equivalent gold position that would have the same marked-to-market sensitivity for a small change in the gold price. This is calculated using the Black-Scholes option formula with the ruling market prices, interest rates and volatilities as at 31 December 2009. Fair value of derivative analysis by accounting designation at 31 December 2009 Figures in millions Cash flow hedge Non-hedge Total accounted accounted US Dollar Commodity option contracts - (1,987) (1,987) Forward sale commodity contracts (37) (158) (195) Interest rate swaps - (13) (13) Total hedging contracts (37) (2,158) (2,195) Embedded derivatives - (1) (1) Warrants on shares - 5 5 Option component of convertible bond - (175) (175) Total derivatives (37) (2,329) (2,366) Credit risk adjustment - (150) (150) Total derivatives - before credit risk (37) (2,479) (2,516) adjustment Rounding of figures may result in computational discrepancies. Exploration Total exploration expenditure during the fourth quarter, inclusive of expenditure at equity accounted joint ventures, was $71m ($29m brownfields, $25m greenfields, $17m studies), compared with $55m ($22m brownfields, $29m greenfields, $4m studies) in the previous quarter. BROWNFIELDS EXPLORATION In South Africa, surface drilling continued in the Project Zaaiplaats area. MMB5 deflection 5, intersect the Jersey Fault. Deflection 7 is now being drilled to intersect the Vaal Reef. MZA9 continued drilling a long deflection but technical issues resulted in deflection 19 being stopped. Deflection 23 is now being drilled and the first reef intersection is now expected in May 2010. The long deflection from MGR6 continued drilling and the hole is currently at a depth of 2,397m. The Vaal Reef is expected to be intersected in July 2010. Progress on MGR8 was slow due to weak rock formations. The hole is currently at 3,020m and a reef intersection is anticipated in February 2010. In the Western Ultra Deep Levels area, UD51 intersect a partly artesian fracture system and this has significantly reduced the advance. The hole is currently at a depth of 2,796m and a Ventersdorp Contact reef intersection is expected in June 2010. At Obuasi in Ghana, no drilling was undertaken on 50 Level due to flooding. Once dewatering is complete rehabilitation of the planned drill sites will be required prior to the recommencement of drilling operations. In Argentina, Mineral Resource definition drilling continued on the Osvaldo Diez, El Trio and Laguna Veins. Underground definition drilling continued at Osvaldo Diez. Sampling, mapping and geological recognisance continued in the Volcan Area and the aeromagnetic survey of the sector started with some interesting structural trends identified. The survey was delayed by an unfortunate helicopter incident which damaged the probe. In Australia, at Sunrise Dam, drilling continued to infill and extend both surface and underground lodes. Underground targets included GQ, Cosmo, Dolly and extensions to all these bodies. Surface targets included the paleochannel, Golden Delicious, Neville and the north ramp. Opportunities have also been identified for other open pittable satellite targets and drilling has started at Wilga. In Brazil, at the Córrego do Sítio Sulphide Project, drilling continued with 3,975m being drilled from surface, 8,299m drilled from underground and 1,047m of underground development. At the Lamego project, 2,721m of surface drilling and 1,137m of underground development were completed. For Cuiabá, 4,278m of drilling was completed. At Serra Grande drilling focused on the Cajuerio, Pequizão and Palmeiras targets. During the quarter drilling with the Devidrill system was successfully tested. At Kibali in the Democratic Republic of the Congo, a review of the structural and lithological controls on mineralisation was completed over the KCD deposit. Drilling also concentrated on investigating the possible linking of the KCD deposit with Gorumbwa at depth. Work focused on: resource drilling (44 holes completed, 8,484m); core review of selected KCD holes (60 holes) and geological modelling; surface mapping of the KCD - Gorungwa areas; the completion of two diamond drill holes (1,556m) in the KCD - Gorumbwa gap; on-going soil geochemistry over the block 1, west of KCD, 4 new anomalies identified; sampling of the old Durba mill (251 samples); and first pass geological aeromagnetic interpretation. At Mongbwalu, a programme of diamond drilling commenced during the fourth quarter, with six PQ sized holes being completed to enable sample collection for metallurgical test work. In addition the first of ten diamond drill holes was completed as part of the geotechnical sampling programme. A further 1,230m of geotechnical drilling is planned to be completed early in the first quarter of 2010. This will be followed by an RC and diamond drilling infill drilling programme to allow the upgrading of the current Inferred Mineral Resource to Indicated status in support of the small scale mine feasibility study. At Siguiri in Guinea, work was completed on the Sintroko South Extension, the Combined Pits area, Komatigiuya and Sintroko. The Komatigiuya target represents a significant new discovery. Work continues in the Tubani area with infill drilling between the marginal ore stockpile and pit. IP Geophysical equipment arrived on site and a test self-potential (SP) survey over Sintroko South was completed. Results are promising with IP anomalies co-incident with known mineralisation. Future surveys will include Tubani and the rest of the Sintroko area. At Geita in Tanzania, IP geophysical surveys were carried out on Area 3 but have been put on hold until January 2010 in order to support the core re-boxing and re-logging programmes and the gyro-survey teams working on the NY7 infill drilling programme. The original Central Thrust Ramp geological modeling programme has been redesigned to focus on the Nyankanga deposit. At the end of the quarter a total of 45,848m have been relogged and modeling is ongoing. The infill drilling programme at Nyankanga Cut 7 was completed in December. A total of 16,727m was drilled. Logging and sampling should be completed in January 2010. At Yatela in Mali, drilling continued with the aim of extending the life of the Yatela and Alamoutala open pits. Results to date have been encouraging and remodeling of the ore bodies, which is ongoing, is expected to increase the mine life. A further 7,500m of drilling has been approved to extend this work in 2010. The Sadiola Deeps infill drilling commenced in December with two diamond drill holes (582m) and three RC holes (560m) being completed. Further drilling was also undertaken to infill the FE3/FE4 pit gap, and all holes have been sampled and submitted for assay, results are awaited. Due to the seasonal weather conditions, the ground gravity survey was suspended and will recommence in January 2010. A high resolution aeromagnetic and radiometric survey was completed over the Sadiola and Yatela mining lease areas. At Navachab in Namibia, the on mine exploration drilling programme concentrated on the North Pit 2 Footwall vein extensions. Off mine drilling was conducted on both the Klipspringer and Steenbok/Starling targets. Assay results from these programmes are awaited. A gradient IP survey was completed over the Anomaly 16 prospect. The results indicate the potential for significant sulphide mineralisation and several drill targets were recommended. At Cripple Creek & Victor in the United States of America, resource extension drilling continued during the quarter. Drilling and studies continue to quantify the potential of the high grade Mineral Resource. Metallurgical testing of high grade material is underway and further metallurgical test drilling has been planned. ANGLOGOLD ASHANTI / DE BEERS JOINT VENTURE During the quarter, a memorandum of understanding was signed with Seafield Resources and drilling off the west coast of South Island, New Zealand (Seafield Venture) is planned to start this quarter. GREENFIELDS EXPLORATION Greenfield exploration activities were undertaken in Australia, the Americas, China, Southeast Asia, Sub-Saharan Africa, Russia, the Democratic Republic of the Congo and the Middle East & North Africa. A total of 36,802m of diamond, RC and AC drilling was completed at existing priority targets and used to delineate new targets in Australia, Colombia and Canada. Work continued on the feasibility study for the Tropicana Gold Project in Australia while environmental approvals required for open pit mining were sought. Exploration continued throughout the tenement package while targets close to the proposed gold operation were prioritized. AngloGold Ashanti owns 70% of the project and Independence Group owns the rest. Drilling about 550m northeast of the proposed Tropicana pit returned results of 7m @ 2.1g/t gold from 141m and 14m @ 3.49g/t gold from 176m. Significantly, these intersections from the same hole may represent the faulted northern continuation of the Tropicana ore body. Encouraging results were also obtained to the south of the proposed Havana pit at the Havana South zone and Crouching Tiger prospects. In Havana South, significant intersections included 13m @ 2.37g/t gold from 317m and 21m @ 2.50g/t gold from 202m. RC drilling at Crouching Tiger intersected 8m @ 2.83g/t gold from 134m. In more regional exploration, significant aircore results were returned from Black Dragon, 30km from the Tropicana - Havana resource, including 4m @ 0.6g/t gold from 40m. At Tumbleweed, 10km north of Tropicana, aircore drilling returned 8m @ 0.81g/t gold from 56m. These results confirm the anomalous zones identified by previous significant aircore intersections and extend the potential size of the targets. At Voodoo Child, 50km north of Tropicana, aircore drilling intersected 17m @ 2.25g/t gold from 3m. Infill aircore drilling and follow-up reverse circulation drilling are planned for these prospects in 2010. The Viking project, which spans about 11,000 square kilometres and includes 6,200 square kilometres of granted exploration licences, is southwest of the joint venture area and within the Albany-Fraser foreland tectonic setting that hosts the Tropicana deposit. Surface geochemical sampling continued throughout the quarter and an airborne magnetic-radiometric survey was completed. Greenfields exploration in the Americas was active in Colombia, Brazil, and Canada. In Colombia, 688.6 m of Phase III drilling at one project with the rest of the work focused on regional reconnaissance and follow-up exploration. In Brazil, the exploration team initiated various reconnaissance programmes in unexplored areas. In Canada, projects in the Laurentian and Commander Resources JV's were advanced to drill stage. In China, a soil sampling programme across the Jinchanggou tenements, designed to identify similar high-grade zones to those delineated in this year's trenching programme, was completed. Soil sampling ended in early December, final results were obtained ;ater that month and analysis of the results is ongoing. The three new applications in the Junggar Belt of NE China are pending approval from the Provincial Department of Land and Resources. In Southeast Asia, project-generation activities and specific evaluations continued in a number of areas across the region. In the Solomon Islands two joint venture agreements were signed with XDM Resources under which AngloGold Ashanti can earn a 51% participating interest in two separate projects, by spending US$10m in total. A further 19% interest in each area can be earned by the successful completion of a bankable feasibility study. AngloGold Ashanti has agreed to complete a C$3.3m initial private placement in XDM Resources and may also exercise a further C$3.98m. Field mapping, auger soil sampling, rock chip sampling and petrological studies have commenced. In Sub-Saharan Africa, AngloGold Ashanti and Canada's Dome Ventures Corp entered into a joint venture agreement over Domes' 100% owned Mevang and Ndjole licences in Gabon, covering a combined 4,000 square kilometers. AngloGold also staked the "Ogooue" prospect covering 8,295 square kilometers of similar geology and concluded a transaction for the Mimongo and Koumaneyoung licences. Collectively, this area is referred to as the "Gabon Gold Project" and totals approximately 16,501 square kilometers. In the Democratic Republic of the Congo, negotiations continued with the Government to secure concession licenses and are expected to be concluded in early 2010. Drilling recommenced in November and a total of 1,108m in 10 holes was completed for metallurgical test work at the Mongbwalu Resource area, while field mapping continued along strike from the deposit. Mapping was completed at Mosaba Hill, southwest of Mongbwalu and Kopatele, southwest of Nzebi. In the Middle East & North Africa, the strategic alliance between AngloGold Ashanti and Thani Investments has identified several promising projects in the Arabian Nubian Shield. Mineral Resource and Ore Reserve Mineral Resource and Ore Reserve are reported in accordance with the minimum standards described by the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code, 2004 Edition), and also conform to the standards set out in the South African Code for the Reporting of Mineral Resources and Mineral Reserves (SAMREC 2000 Code). Mineral Resources are inclusive of the Ore Reserve component unless otherwise stated. MINERAL RESOURCES When the 2008 Mineral Resource is restated to exclude the sale of Boddington (11.9Moz) and the purchase of Kibali (10.1Moz) the Mineral Resource is reduced from 241.0Moz to 239.2Moz. The total Mineral Resources decreased from 239.2Moz in 2008 to 226.7Moz in December 2009. A year-on-year decrease of 6.3Moz (3%) occurred before the subtraction of depletion and a decrease of 12.5Moz (5%) after the subtraction of depletion. It should be noted that the changes in economic assumptions from 2008 to 2009 resulted in the Mineral Resource decreasing by 2.8Moz whilst exploration and modelling resulted in an increase of 3.5Moz. The remaining loss of 6.9Moz resulted from various other reasons. Depletions from the Mineral Resource for 2009totalled 6.2Moz. Moz Mineral Resources as at 31 December 2008 241.0 Sale of Boddington (11.9) Acquisition of Kibali 10.1 Restated 2008 Mineral Resources 239.2 Reductions Obuasi Predominantly due to changes in the underground resource (7.8) models and a re-assessment of the surface resources. This reduction does not impact on the Ore Reserve Vaal River Reductions due to lower uranium price (3.2) Surface (VRGO) Geita Predominantly due to depletion, model updates and increase (1.4) in costs Kibali Conversion of Inferred to Indicated Mineral Resource (1.2) resulted in losses West Wits Reductions due to lower uranium price (1.2) Surface Other Total of non-significant changes (4.0) Additions Moab Gains due to exploration resulting in an increase in 2.2 Khotsong confidence and grades Other Total of non-significant changes 4.1 Mineral Resources as at 31 December 2009 226.7 Mineral resources have been calculated at a gold price of US$1,025/oz (2008: US$1,000/oz). Rounding of figures may result in computational discrepencies. ORE RESERVES When the 2008 Ore Reserve is restated to exclude the sale of Boddington (6.7Moz) and the purchase of Kibali (2.5Moz), the 2008 Ore Reserve is reduced from 74.9Moz to 70.7 Moz. Using the restated figure, the total AngloGold Ashanti Ore Reserves increased from 70.7Moz in 2008 to 71.4Moz in December 2009. A year-on-year increase of 6.0Moz (8%) occurred before the subtraction of 5.2Moz for depletion, resulting in an increase of 0.8Moz (1%) after the subtraction of depletion. It should be noted that the changes in the economic assumptions from 2008 to 2009 resulted in the Ore Reserve increasing 3.2Moz while exploration and modelling resulted in a further increase of 2.7Moz. Moz Ore Reserves as at 31 December 2008 74.9 Sale of Boddington (6.7) Acquisition of Kibali 2.5 Restated 2008 Ore Reserves 70.7 Reductions Great Northern portion of mine was removed from plan to ensure (1.0) Noligwa profitability Kopanang Reduction due to mine design changes plus slightly lower (0.7) MCF, also changes in geological structure, facies and evaluation model Cripple Adjustment due to heap leach reconciliation issues (0.6) Creek & Victor Other Total of non-significant changes (2.3) Additions Tropicana First Ore Reserve reported for Tropicana - based on Enhanced 2.3 Feasibility Study and Owner Mining Kibali New acquisition (2.5Moz) and underground Ore Reserve 1.7 additions (1.7Moz) Sadiola Deep Sulphides Ore Reserve included and ownership increased 1.0 from 38% to 41% Other Total of non-significant changes 0.4 Ore Reserves as at 31 December 2009 71.4 Capital ore reserves have been calculated using a gold price of US$800/oz (2008: US$720/oz). Rounding of figures may result in computational discrepancies.. BY-PRODUCTS Several by-products are recovered as a result of the processing of gold Ore Reserves. These include 17,000t of uranium oxide from the South African operations, 409,000t of sulphur from Brazil and 34.9Moz of silver from Argentina. Details of by-product Mineral Resources and Ore Reserves are given in the Mineral Resource and Ore Reserve Report 2009, which will be available on or about 26 March 2010 either on the corporate website, www.AngloGoldAshanti.com, or on request from the contacts detailed at the end of this report. EXTERNAL AUDIT OF MINERAL RESOURCE During the course of the year and as part of the rolling audit programme, AngloGold Ashanti's 2009 Mineral Resources at the following operations were submitted for external audit by the Australian based company Quantitative Group (QG): * Carbon Leader at Mponeng, TauTona and Savuka mines; * Navachab - Main Pit; * Geita - Nyankanga; * Obuasi - KMS Deep; * Siguiri - Project Area 1; * Sadiola - Deep Sulphide; * Sunrise Dam - Underground; and * Brasil Mineração - Cuiabá. The company has been informed that the audit identified no material shortcomings in the process by which AngloGold Ashanti's Mineral Resources were evaluated. It is the company's intention to continue this process so that each of its operations will be audited every three years on average. COMPETENT PERSONS The information in this report that relates to Exploration Results, Mineral Resources and Ore Reserves is based on information compiled by the Competent Persons. These individuals are identified in the report. The Competent Persons consent to the inclusion of Exploration Results, Mineral Resources and Ore Reserves information in this report, in the form and context in which it appears. During the past decade, the company has developed and implemented a rigorous system of internal and external reviews of exploration results, Mineral Resources and Ore Reserves. A documented chain of responsibility exists from the Competent Persons at the operations to the company's Mineral Resource and Ore Reserve Steering Committee. Accordingly, the Chairman of the Mineral Resource and Ore Reserve Steering Committee, VA Chamberlain, MSc (Mining Engineering), BSc (Hons) (Geology), MAusIMM, assumes responsibility for the Mineral Resource and Ore Reserve processes for AngloGold Ashanti and is satisfied that the Competent Persons have fulfilled their responsibilities. MINERAL RESOURCES BY COUNTRY (ATTRIBUTABLE) Category Contained Contained Tonnes Grade gold gold million g/t as at 31 December 2009 tonnes Moz South Africa Measured 30.37 14.18 430.77 13.85 Indicated 300.55 7.59 2,281.63 73.36 Inferred 42.24 13.51 570.45 18.34 Total 373.16 8.80 3,282.85 105.55 Namibia Measured 17.24 0.78 13.46 0.43 Indicated 66.84 1.24 82.57 2.65 Inferred 18.53 1.07 19.92 0.64 Total 102.60 1.13 115.95 3.73 Democratic Republic of the Congo Measured 0.00 - 0.00 0.00 Indicated 59.17 3.29 194.93 6.27 Inferred 31.82 4.61 146.79 4.72 Total 90.99 3.76 341.72 10.99 Ghana Measured 80.21 4.98 399.77 12.85 Indicated 72.39 3.86 279.66 8.99 Inferred 98.44 3.88 382.02 12.28 Total 251.04 4.23 1,061.45 34.13 Guinea Measured 36.58 0.68 24.73 0.80 Indicated 130.15 0.85 110.34 3.55 Inferred 78.22 0.89 69.85 2.25 Total 244.95 0.84 204.92 6.59 Mali Measured 18.34 1.46 26.86 0.86 Indicated 37.23 1.82 67.80 2.18 Inferred 20.89 1.77 36.94 1.19 Total 76.46 1.72 131.59 4.23 Tanzania Measured 0.00 - 0.00 0.00 Indicated 87.70 3.46 303.46 9.76 Inferred 13.03 4.04 52.63 1.69 Total 100.73 3.54 356.10 11.45 Australia Measured 34.10 1.87 63.60 2.04 Indicated 38.83 2.88 111.97 3.60 Inferred 15.34 3.01 46.13 1.48 Total 88.26 2.51 221.69 7.13 United States of America Measured 280.80 0.82 231.03 7.43 Indicated 194.55 0.73 142.71 4.59 Inferred 73.12 0.73 53.58 1.72 Total 548.46 0.78 427.31 13.74 Argentina Measured 12.00 1.78 21.37 0.69 Indicated 22.70 3.38 76.62 2.46 Inferred 6.16 3.71 22.82 0.73 Total 40.85 2.96 120.81 3.88 Brazil Measured 11.24 6.49 72.93 2.34 Indicated 15.16 6.02 91.28 2.93 Inferred 30.53 6.76 206.35 6.63 Total 56.93 6.51 370.56 11.91 Colombia Measured 0.00 - 0.00 0.00 Indicated 15.16 0.93 14.18 0.46 Inferred 402.51 1.00 401.40 12.91 Total 417.67 0.99 415.57 13.36 Total Measured 520.88 2.47 1,284.51 41.30 Indicated 1,040.43 3.61 3,757.14 120.79 Inferred 830.81 2.42 2,008.87 64.59 Total 2,392.12 2.95 7,050.53 226.68 Rounding of figures may result in computational discrepencies. ORE RESERVES BY COUNTRY (ATTRIBUTABLE) Category Contained Contained Tonnes Grade gold gold million g/t as at 31 December 2009 tonnes Moz South Africa Proved 8.80 8.13 71.60 2.30 Probable 213.96 4.16 890.80 28.64 Total 222.76 4.32 962.40 30.94 Namibia Proved 9.85 0.93 9.12 0.29 Probable 32.40 1.28 41.42 1.33 Total 42.25 1.20 50.55 1.63 Democratic Republic of the Congo Proved 0.00 - 0.00 0.00 Probable 28.71 4.48 128.65 4.14 Total 28.71 4.48 128.65 4.14 Ghana Proved 40.29 3.36 135.34 4.35 Probable 51.31 4.66 239.31 7.69 Total 91.60 4.09 374.65 12.05 Guinea Proved 30.83 0.64 19.59 0.63 Probable 87.85 0.86 75.99 2.44 Total 118.67 0.81 95.58 3.07 Mali Proved 9.24 1.99 18.35 0.59 Probable 18.96 2.02 38.32 1.23 Total 28.21 2.01 56.67 1.82 Tanzania Proved 0.00 - 0.00 0.00 Probable 47.36 3.33 157.57 5.07 Total 47.36 3.33 157.57 5.07 Australia Proved 23.63 2.24 53.00 1.70 Probable 25.72 2.82 72.63 2.34 Total 49.35 2.55 125.63 4.04 United States of America Proved 99.82 0.92 92.29 2.97 Probable 46.40 0.89 41.17 1.32 Total 146.22 0.91 133.47 4.29 Argentina Proved 10.76 1.37 14.78 0.48 Probable 9.64 4.53 43.66 1.40 Total 20.40 2.86 58.44 1.88 Brazil Proved 6.67 5.90 39.37 1.27 Probable 7.30 5.37 39.21 1.26 Total 13.97 5.63 78.58 2.53 Total Proved 239.89 1.89 453.45 14.58 Probable 569.61 3.11 1,768.73 56.87 Total 809.50 2.75 2,222.19 71.44 Rounding of figures may result in computational discrepencies. MINERAL RESOURCES BY COUNTRY (ATTRIBUTABLE) EXCLUSIVE OF ORE RESERVES Category Contained Contained Tonnes Grade gold gold million g/t as at 31 December 2009 tonnes Moz South Africa Measured 22.89 14.34 328.17 10.55 Indicated 100.15 11.48 1,149.86 36.97 Inferred 21.11 15.73 332.07 10.68 Total 144.15 12.56 1,810.10 58.20 Namibia Measured 7.39 0.59 4.34 0.14 Indicated 34.43 1.19 40.99 1.32 Inferred 18.53 1.07 19.92 0.64 Total 60.35 1.08 65.24 2.10 Democratic Republic of the Congo Measured 0.00 - 0.00 0.00 Indicated 30.46 2.18 66.28 2.13 Inferred 31.82 4.61 146.79 4.72 Total 62.28 3.42 213.07 6.85 Ghana Measured 27.08 5.05 136.86 4.40 Indicated 34.89 3.99 139.29 4.48 Inferred 53.62 3.86 206.88 6.65 Total 115.58 4.18 483.02 15.53 Guinea Measured 3.75 0.78 2.93 0.09 Indicated 45.56 0.86 39.30 1.26 Inferred 78.22 0.89 69.85 2.25 Total 127.52 0.88 112.07 3.60 Mali Measured 4.86 0.79 3.85 0.12 Indicated 20.27 1.58 32.05 1.03 Inferred 20.89 1.77 36.94 1.19 Total 46.02 1.58 72.84 2.34 Tanzania Measured 0.00 - 0.00 0.00 Indicated 43.22 3.21 138.72 4.46 Inferred 13.03 4.04 52.63 1.69 Total 56.24 3.40 191.35 6.15 Australia Measured 1.70 1.36 2.32 0.07 Indicated 13.11 3.00 39.34 1.26 Inferred 15.34 3.01 46.13 1.48 Total 30.15 2.91 87.79 2.82 United States of America Measured 180.98 0.77 138.73 4.46 Indicated 148.15 0.69 101.53 3.26 Inferred 68.65 0.74 50.77 1.63 Total 397.78 0.73 291.04 9.36 Argentina Measured 2.29 3.08 7.06 0.23 Indicated 16.04 2.17 34.80 1.12 Inferred 6.16 3.71 22.82 0.73 Total 24.49 2.64 64.68 2.08 Brazil Measured 4.31 6.41 27.63 0.89 Indicated 8.20 5.77 47.29 1.52 Inferred 29.45 6.81 200.66 6.45 Total 41.96 6.57 275.57 8.86 Colombia Measured 0.00 - 0.00 0.00 Indicated 15.16 0.93 14.18 0.46 Inferred 402.51 1.00 401.40 12.91 Total 417.67 0.99 415.57 13.36 Total Measured 255.24 2.55 651.88 20.66 Indicated 509.64 3.62 1,843.61 59.27 Inferred 759.32 2.09 1,586.84 51.02 Total 1,524.20 2.68 4,082.34 131.25 Rounding of figures may result in computational discrepencies. Group operating results Quarter ended Year Quarter ended Year ended ended Dec Sep Dec Dec Dec Dec Sep Dec Dec Dec 2009 2009 2008 2009 2008 2009 2009 2008 2009 2008 Unaudited Unaudited Rand / Metric Dollar / Imperial OPERATING RESULTS UNDERGROUND OPERATIONS Milled - 000 / - 000 tons 2,910 3,090 3,227 11,944 12,335 3,207 3,406 3,557 13,166 13,597 tonnes Yield - g/t / - oz/t 6.68 6.41 6.72 6.41 6.89 0.195 0.187 0.196 0.187 0.201 Gold - kg / - oz (000) 19,435 19,816 21,679 76,532 85,025 625 637 697 2,461 2,734 produced SURFACE AND DUMP RECLAMATION Treated - 000 / - 000 tons 3,068 3,102 3,092 12,779 11,870 3,382 3,419 3,408 14,086 13,085 tonnes Yield - g/t / - oz/t 0.48 0.49 0.44 0.51 0.42 0.014 0.014 0.013 0.015 0.012 Gold - kg / - oz (000) 1,476 1,527 1,362 6,481 5,009 47 49 44 208 161 produced OPEN-PIT OPERATIONS Mined - 000 / - 000 tons 40,346 37,408 40,332 167,000 175,999 44,474 41,235 44,458 184,086 194,006 tonnes Treated - 000 / - 000 tons 6,645 6,713 6,575 25,582 25,388 7,325 7,400 7,248 28,199 27,985 tonnes Stripping - t (mined total - 4.71 6.08 4.65 5.58 5.24 4.71 6.08 4.65 5.58 5.24 ratio mined ore) / t mined ore Yield - g/t / - oz/t 1.98 1.95 2.01 1.96 2.12 0.058 0.057 0.059 0.057 0.062 Gold in ore - kg / - oz (000) 10,348 8,604 18,394 34,934 47,160 333 277 591 1,123 1,516 Gold - kg / - oz (000) 13,128 13,077 13,240 50,041 53,930 422 420 426 1,609 1,734 produced HEAP LEACH OPERATIONS Mined - 000 / - 000 tons 14,480 14,605 13,712 57,456 54,754 15,961 16,099 15,115 63,334 60,356 tonnes Placed 1 - 000 / - 000 tons 4,678 4,409 5,861 19,887 23,462 5,156 4,860 6,460 21,922 25,863 tonnes Stripping - t (mined total - 2.23 2.52 1.47 1.94 1.43 2.23 2.52 1.47 1.94 1.43 ratio mined ore) / t mined ore Yield 2 - g/t / - oz/t 0.72 0.60 0.61 0.65 0.62 0.021 0.018 0.018 0.019 0.018 Gold placed - kg / - oz (000) 3,380 2,667 3,577 12,958 14,496 109 86 115 417 466 3 Gold - kg / - oz (000) 2,728 2,505 3,148 9,995 10,994 88 81 101 321 353 produced TOTAL Gold - kg / - oz (000) 36,767 36,925 39,429 143,049 154,958 1,182 1,187 1,268 4,599 4,982 produced Gold sold - kg / - oz (000) 37,359 38,435 39,249 142,837 155,954 1,201 1,236 1,262 4,592 5,014 Price - R/kg / - $/oz sold 247,985 61,095 219,329 201,805 130,522 1,029 261 687 751 485 received Price - R/kg / - $/oz sold 247,985 225,388 219,329 246,048 185,887 1,029 906 687 925 702 received excluding hedge buy-back costs Total cash - R/kg / -$/oz prod 143,596 133,274 134,813 136,595 117,462 598 534 422 514 444 costs -uced Total - R/kg / -$/oz prod 178,379 166,355 172,312 171,795 150,149 743 667 540 646 567 production -uced costs PRODUCTIVITY PER EMPLOYEE Target - g / - oz 333 328 342 317 333 10.72 10.56 11.00 10.20 0.70 Actual - g / - oz 292 301 295 292 309 9.40 9.68 9.48 9.40 9.94 CAPITAL - Rm / - $m 2,275 1,842 2,994 8,726 9,905 293 232 302 1,027 1,201 EXPENDITURE 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. Group income statement Quarter Quarter Quarter Year Year ended ended ended ended ended December September December December December 2009 2009 2008 2009 2008 SA Rand million Notes Unaudited Unaudited Unaudited Unaudited Audited Revenue 2 9,514 8,806 8,771 31,961 30,790 Gold income 9,234 8,512 8,517 30,745 29,774 Cost of sales 3 (6,219) (6,168) (6,928) (23,220) (22,558) (Loss) gain on non-hedge 4 (2,706) (11,216) 598 (11,934) (6,277) derivatives and other commodity contracts Gross profit (loss) 309 (8,872) 2,187 (4,409) 939 Corporate administration (359) (264) (363) (1,275) (1,090) and other expenses Market development costs (10) (24) (41) (87) (113) Exploration costs (442) (311) (298) (1,217) (1,037) Other operating income 5 58 (36) 61 (80) (29) (expenses) Operating special items 6 4,761 (231) (15,855) 5,209 (15,379) Operating profit (loss) 4,317 (9,738) (14,309) (1,859) (16,709) Interest received 133 121 108 444 536 Exchange gain 527 25 8 852 33 Fair value adjustment on (66) (60) 2 (249) 185 option component of convertible bond Finance costs and (268) (305) (225) (1,146) (926) unwinding of obligations Share of equity 227 175 (381) 785 (1,177) accounted investments' profit (loss) Profit (loss) before 4,870 (9,782) (14,797) (1,173) (18,058)taxation Taxation 7 (1,522) 1,650 2,978 (1,172) 2,079 Profit (loss) after 3,348 (8,132) (11,819) (2,345) (15,979) taxation from continuing operations Discontinued operations Profit from discontinued - - 4 - 198 operations Profit (loss) for the 3,348 (8,132) (11,815) (2,345) (15,781) period Allocated as follows: Equity shareholders 3,179 (8,245) (11,869) (2,762) (16,105) Non-controlling 169 113 54 417 324 interests 3,348 (8,132) (11,815) (2,345) (15,781) Basic profit (loss) per ordinary share (cents) 1 Profit (loss) from 867 (2,286) (3,336) (765) (5,140) continuing operations Profit from discontinued - - 1 - 63 operations Profit (loss) 867 (2,286) (3,335) (765) (5,077) Diluted profit (loss) per ordinary share (cents) 2 Profit (loss) from 865 (2,286) (3,336) (765) (5,140) continuing operations Profit from discontinued - - 1 - 63 operations Profit (loss) 865 (2,286) (3,335) (765) (5,077) 1 Calculated on the basic weighted average number of ordinary shares. 2 Calculated on the diluted weighted average number of ordinary shares. Rounding of figures may result in computational discrepancies. Group income statement Quarter Quarter Quarter Year Year ended ended ended ended ended December September December December December 2009 2009 2008 2009 2008 US Dollar Notes Unaudited Unaudited Unaudited Unaudited Audited million Revenue 2 1,273 1,140 884 3,916 3,743 Gold income 1,236 1,101 858 3,768 3,619 Cost of sales 3 (833) (796) (698) (2,813) (2,728) (Loss) gain on 4 (363) (1,421) 230 (1,533) (297) non-hedge derivatives and other commodity contracts Gross profit 40 (1,116) 390 (578) 594 (loss) Corporate (48) (34) (37) (154) (131) administration and other expenses Market (1) (3) (4) (10) (13) development costs Exploration (59) (40) (30) (150) (126) costs Other operating 5 8 (5) 6 (8) (6) income (expenses) Operating 6 636 (31) (1,600) 691 (1,538) special items Operating 576 (1,229) (1,275) (209) (1,220) profit (loss) Interest 18 16 11 54 66 received Exchange gain 71 3 1 112 4 Fair value adjustment (9) - (33) 25 on option component (9) of convertible bond Finance costs (36) (39) (23) (139) (114) and unwinding of obligations Share of equity 30 22 (39) 94 (138) accounted investments' profit (loss) Profit (loss) 650 (1,236) (1,324) (121) (1,377) before taxation Taxation 7 (204) 209 313 (147) 197 Profit (loss) 446 (1,027) (1,011) (268) (1,180) after taxation from continuing operations Discontinued operations Profit from - - - - 25 discontinued operations Profit (loss) 446 (1,027) (1,011) (268) (1,155) for the period Allocated as follows: Equity 424 (1,042) (1,016) (320) (1,195) shareholders Non-controlling 22 15 5 52 40 interests 446 (1,027) (1,011) (268) (1,155) Basic profit (loss) per ordinary share (cents) 1 Profit (loss) 116 (289) (285) (89) (385) from continuing operations Profit from - - - - 8 discontinued operations Profit (loss) 116 (289) (285) (89) (377) Diluted profit (loss) per ordinary share (cents) 2 Profit (loss) 115 (289) (285) (89) (385) from continuing operations Profit from - - - - 8 discontinued operations Profit (loss) 115 (289) (285) (89) (377) 1 Calculated on the basic weighted average number of ordinary shares. 2 Calculated on the diluted weighted average number of ordinary shares. Rounding of figures may result in computational discrepancies. Group statement of comprehensive income Quarter Quarter Quarter Year Year ended ended ended ended ended December September December December December 2009 2009 2008 2009 2008 SA Rand million Unaudited Unaudited Unaudited Unaudited Audited Profit (loss) for the period 3,348 (8,132) (11,815) (2,345) (15,781) Exchange differences on (576) 336 4,150 (2,465) 8,747 translation of foreign operations Net loss on cash flow hedges (140) (142) (99) (132) (721) Net loss on cash flow hedges 181 122 369 1,155 1,782 removed from equity and reported in gold income Hedge ineffectiveness on cash 15 (18) 67 40 64 flow hedges Realised gains (losses) on 2 (35) (18) (12) (18) hedges of capital items Deferred taxation thereon (13) 17 (58) (263) (254) 45 (56) 261 788 853 Net gain (loss) on available 346 100 7 482 (74) for sale financial assets Release on disposal of - - (1) - (9) available for sale financial assets Deferred taxation thereon (5) (4) (12) (13) 11 341 96 (6) 469 (72) Actuarial gain (loss) 88 - (171) 88 (364) recognised Deferred taxation thereon (28) - 58 (28) 124 60 - (113) 60 (240) Other comprehensive (expense) (130) 376 4,292 (1,148) 9,288 income for the period net of tax Total comprehensive income 3,218 (7,756) (7,523) (3,493) (6,493) (expense) for the period net of tax Allocated as follows: Equity shareholders 3,050 (7,869) (7,570) (3,919) (6,839) Non-controlling interests 168 113 47 426 346 3,218 (7,756) (7,523) (3,493) (6,493) Rounding of figures may result in computational discrepancies. Group statement of comprehensive income Quarter Quarter Quarter Year Year ended ended ended ended ended December September December December December 2009 2009 2008 2009 2008 Restated US Dollar million Unaudited Unaudited Unaudited Unaudited Unaudited Profit (loss) for the period 446 (1,027) (1,011) (268) (1,155) Exchange differences on (50) 76 (267) 300 (561) translation of foreign operations Net loss on cash flow hedges (17) (15) (6) (16) (87) Net loss on cash flow hedges 26 19 32 138 216 removed from equity and reported in gold income Hedge ineffectiveness on 2 (2) 8 5 8 cash flow hedges Realised gains (losses) on 1 (4) (2) (1) (2) hedges of capital items Deferred taxation thereon (3) 1 (4) (35) (28) 9 (1) 28 91 107 Net gain (loss) on available 41 12 2 57 (9) for sale financial assets Release on disposal of - - - - (1) available for sale financial assets Deferred taxation thereon (1) (1) (1) (2) 1 40 11 1 55 (9) Actuarial gain (loss) 10 - (19) 10 (44) recognised Deferred taxation thereon (3) - 6 (3) 15 7 - (13) 7 (29) Other comprehensive income 6 86 (251) 453 (492) (expense) for the period net of tax Total comprehensive income 452 (941) (1,262) 185 (1,647) (expense) for the period net of tax Allocated as follows: Equity shareholders 429 (956) (1,266) 132 (1,690) Non-controlling interests 23 15 4 53 43 452 (941) (1,262) 185 (1,647) Rounding of figures may result in computational discrepancies. Group statement of financial position As at As at As at December September December 2009 2009 2008 SA Rand million Note Unaudited Unaudited Audited ASSETS Non-current assets Tangible assets 43,263 37,416 41,081 Intangible assets 1,316 1,315 1,403 Investments in associates and equity accounted 4,758 1,890 2,814 joint ventures Other investments 1,302 961 625 Inventories 2,508 2,550 2,710 Trade and other receivables 788 766 585 Derivatives 40 - - Deferred taxation 451 487 475 Other non-current assets 63 30 32 54,489 45,415 49,725 Current assets Inventories 5,102 4,997 5,663 Trade and other receivables 1,419 3,586 2,076 Derivatives 2,450 2,900 5,386 Current portion of other non-current assets 3 2 2 Cash restricted for use 481 501 415 Cash and cash equivalents 8,176 8,328 5,438 17,631 20,314 18,980 Non-current assets held for sale 650 642 7,497 18,281 20,956 26,477 TOTAL ASSETS 72,770 66,371 76,202 EQUITY AND LIABILITIES Share capital and premium 10 39,834 39,759 37,336 Retained earnings and other reserves (18,276) (21,601) (14,380) Non-controlling interests 966 848 790 Total equity 22,524 19,006 23,746 Non-current liabilities Borrowings 4,862 12,512 8,224 Environmental rehabilitation and other 3,351 3,530 3,860 provisions Provision for pension and post-retirement 1,179 1,280 1,293 benefits Trade, other payables and deferred income 108 107 99 Derivatives 1,310 1,249 235 Deferred taxation 5,599 4,272 5,838 16,409 22,950 19,549 Current liabilities Current portion of borrowings 9,493 1,867 10,046 Trade, other payables and deferred income 4,332 4,449 4,946 Derivatives 18,770 16,954 16,426 Taxation 1,186 1,079 1,033 33,781 24,349 32,451 Non-current liabilities held for sale 56 66 456 33,837 24,415 32,907 Total liabilities 50,246 47,365 52,456 TOTAL EQUITY AND LIABILITIES 72,770 66,371 76,202 Net asset value - cents per share 6,153 5,195 6,643 Rounding of figures may result in computational discrepancies. Group statement of financial position As at As at As at December September December 2009 2009 2008 Restated US Dollar million Note Unaudited Unaudited Unaudited ASSETS Non-current assets Tangible assets 5,819 4,980 4,345 Intangible assets 177 175 148 Investments in associates and equity accounted 640 252 298 joint ventures Other investments 175 128 66 Inventories 337 339 287 Trade and other receivables 106 102 62 Derivatives 5 - - Deferred taxation 61 65 50 Other non-current assets 8 4 3 7,328 6,045 5,259 Current assets Inventories 686 665 599 Trade and other receivables 191 477 220 Derivatives 330 386 570 Current portion of other non-current assets - - - Cash restricted for use 65 67 44 Cash and cash equivalents 1,100 1,108 575 2,372 2,703 2,008 Non-current assets held for sale 87 85 793 2,459 2,788 2,801 TOTAL ASSETS 9,787 8,833 8,060 EQUITY AND LIABILITIES Share capital and premium 10 5,805 5,794 5,485 Retained earnings and other reserves (2,905) (3,378) (3,057) Non-controlling interests 130 113 83 Total equity 3,030 2,529 2,511 Non-current liabilities Borrowings 654 1,665 870 Environmental rehabilitation and other 451 470 408 provisions Provision for pension and post-retirement 159 170 137 benefits Trade, other payables and deferred income 14 14 11 Derivatives 176 166 25 Deferred taxation 753 569 617 2,207 3,054 2,068 Current liabilities Current portion of borrowings 1,277 249 1,063 Trade, other payables and deferred income 582 592 524 Derivatives 2,525 2,256 1,737 Taxation 159 144 109 4,543 3,241 3,433 Non-current liabilities held for sale 7 9 48 4,550 3,250 3,481 Total liabilities 6,757 6,304 5,549 TOTAL EQUITY AND LIABILITIES 9,787 8,833 8,060 Net asset value - cents per share 828 691 702 Rounding of figures may result in computational discrepancies. Group statement of cashflows Quarter Quarter Quarter Year Year ended ended ended ended ended December September December December December 2009 2009 2008 2009 2008 SA Rand million Unaudited Unaudited Unaudited Unaudited Audited Cash flows from operating activities Receipts from customers 9,596 8,545 8,772 31,473 30,117 Payments to suppliers and (5,889) (6,147) (6,210) (20,896) (24,429) employees Cash generated from operations 3,707 2,398 2,562 10,577 5,688 Cash utilised by discontinued - - (4) - (11) operations Dividends received from equity 136 21 257 751 739 accounted investments Taxation paid (233) (234) (127) (1,232) (1,029) Cash utilised for hedge - (6,315) (10) (6,315) (8,514) buy-back costs Net cash inflow (outflow) from 3,610 (4,130) 2,678 3,781 (3,127) operating activities Cash flows from investing activities Capital expenditure (2,243) (1,836) (2,964) (8,656) (9,846) Proceeds from disposal of 1,814 43 33 9,029 301 tangible assets Proceeds from disposal of - - - - 79 assets of discontinued operations Other investments acquired (229) (328) (197) (750) (769) Acquisition of associates and (2,638) - 3 (2,646) - equity accounted joint ventures Proceeds on disposal of - - (1) - 382 associate Associates' loans advanced (17) - (3) (17) (38) Associates' loans repaid - - 1 3 33 Proceeds from disposal of 196 258 203 680 729 investments Decrease (increase) in cash 19 (16) 94 (91) (49) restricted for use Interest received 129 129 98 445 538 Loans advanced - - - (1) (3) Repayment of loans advanced 2 1 1 4 3 Net cash outflow from (2,967) (1,749) (2,733) (2,000) (8,640) investing activities Cash flows from financing activities Proceeds from issue of share 39 2,215 12 2,384 13,592 capital Share issue expenses (39) (34) (11) (84) (421) Proceeds from borrowings 162 6,709 1,622 24,901 7,034 Repayment of borrowings (57) (12,957) (477) (24,152) (5,066) Finance costs paid (180) (110) (266) (946) (788) Dividends paid (43) (253) - (474) (455) Net cash (outflow) inflow from (118) (4,430) 879 1,629 13,896 financing activities Net increase (decrease) in 525 (10,309) 824 3,410 2,129 cash and cash equivalents Translation (677) 869 29 (672) 63 Cash and cash equivalents at 8,328 17,768 4,585 5,438 3,246 beginning of period Cash and cash equivalents at 8,176 8,328 5,438 8,176 5,438 end of period Cash generated from operations Profit (loss) before taxation 4,870 (9,782) (14,797) (1,173) (18,058) Adjusted for: Movement on non-hedge 2,281 11,041 (1,046) 14,417 3,16 derivatives and other commodity contracts Amortisation of tangible 1,152 1,107 1,387 4,615 4,620 assets Finance costs and unwinding of 268 305 225 1,146 926 obligations Environmental, rehabilitation (70) 33 (72) (47) 38 and other expenditure Operating special items (4,708) 231 15,855 (5,148) 15,379 Amortisation of intangible 4 4 9 18 21 assets Deferred stripping 205 (96) (140) (467) (418) Fair value adjustment on 66 60 (2) 249 (185) option component of convertible bonds Interest received (133) (121) (108) (444) (536) Share of equity accounted (227) (175) 381 (785) 1,177 investments' (profit) loss Other non-cash movements (675) 23 363 (853) 776 Movements in working capital 674 (232) 507 (951) (1,221) 3,707 2,398 2,562 10,577 5,688 Movements in working capital (Increase) decrease in (183) 104 (1,162) 634 (3,588) inventories Decrease (increase) in trade 438 (125) 135 106 (618) and other receivables Increase (decrease) in trade 419 (211) 1,533 (1,691) 2,985 and other payables 674 (232) 507 (951) (1,221) Rounding of figures may result in computational discrepancies. Group statement of cashflows Quarter Quarter Quarter Year Year ended ended ended ended ended December September December December December 2009 2009 2008 2009 2008 US Dollar million Unaudited Unaudited Unaudited Unaudited Audited Cash flows from operating activities Receipts from customers 1,283 1,104 892 3,845 3,672 Payments to suppliers and (805) (741) (681) (2,500) (3,040) employees Cash generated from operations 478 363 210 1,345 632 Cash utilised by discontinued - - - - (1) operations Dividends received from equity 19 5 20 101 78 accounted investments Taxation paid (32) (32) (7) (147) (125) Cash utilised for hedge - (797) (1) (797) (1,113) buy-back costs Net cash inflow (outflow) from 465 (461) 221 502 (529) operating activities Cash flows from investing activities Capital expenditure (281) (239) (298) (1,019) (1,194) Proceeds from disposal of 242 5 3 1,142 39 tangible assets Proceeds from disposal of - - - - 10 assets of discontinued operations Other investments acquired (29) (39) (19) (89) (93) Acquisition of associates and (353) - (1) (354) - equity accounted joint ventures Proceeds on disposal of - - (2) - 48 associate Associates' loans advanced (2) - - (2) (4) Associates' loans repaid - - - - 4 Proceeds from disposal of 25 31 20 81 88 investments Decrease (increase) in cash 2 (2) 14 (10) (6) restricted for use Interest received 17 17 10 55 67 Loans advanced - - - - - Repayment of loans advanced - - - 1 - Net cash outflow from (379) (227) (274) (195) (1,041) investing activities Cash flows from financing activities Proceeds from issue of share 5 287 1 306 1,722 capital Share issue expenses (5) (5) - (11) (54) Proceeds from borrowings 29 784 149 2,774 853 Repayment of borrowings (22) (1,573) (17) (2,731) (614) Finance costs paid (23) (16) (25) (111) (93) Dividends paid (6) (32) - (56) (58) Net cash (outflow) inflow from (22) (555) 108 171 1,756 financing activities Net increase (decrease) in 64 (1,243) 55 478 186 cash and cash equivalents Translation (72) 46 (35) 47 (88) Cash and cash equivalents at 1,108 2,305 555 575 477 beginning of period Cash and cash equivalents at 1,100 1,108 575 1,100 575 end of period Cash generated from operations Profit (loss) before taxation 650 (1,236) (1,324) (121) (1,377) Adjusted for: Movement on non-hedge 306 1,398 (276) 1,787 (88) derivatives and other commodity contracts Amortisation of tangible 154 143 140 555 560 assets Finance costs and unwinding of 36 39 23 139 114 obligations Environmental, rehabilitation (9) 5 (8) (6) 6 and other expenditure Operating special items (629) 31 1,600 (683) 1,538 Amortisation of intangible - 1 1 2 2 assets Deferred stripping 27 (13) (14) (48) (51) Fair value adjustment on 9 9 - 33 (25) option component of convertible bonds Interest received (18) (16) (11) (54) (66) Share of equity accounted (30) (22) 39 (94) 138 investments' (profit) loss Other non-cash movements (90) 3 36 (115) 87 Movements in working capital 72 21 5 (50) (206) 478 363 210 1,345 632 Movements in working capital Increase in inventories (35) (12) (1) (155) (151) Decrease (increase) in trade 55 (25) 47 (45) (9) and other receivables Increase (decrease) in trade 52 58 (40) 150 (46) and other payables 72 21 5 (50) (206) Rounding of figures may result in computational discrepancies. Group statement of changes in equity Cash Available Foreign Share Other flow for Actuarial currency Non- capital capital Retained hedge sale (losses) translation controlling Total & SA Rand million premium reserves earnings reserve reserve gains reserve Total interests equity Balance at 22,371 714 (5,524) 59 (108) 326 16,204 429 16,633 December 2007 (1,634) (Loss) profit 324 for the year (16,105) (16,105) (15,781) Comprehensive 831 (72) (240) 8,747 9,266 22 9,288 income (expense) Total - - 831 (72) (240) 8,747 (6,839) 346 (6,493) comprehensive (16,105) (expense) income Shares issued 14,965 14,965 14,965 Share-based 118 118 118 payment for share awards Dividends paid (324) (324) (324) Dividends of - (131) (131) subsidiaries Acquisition of (914) (914) 6 (908) non-controlling interests Transfers to 12 (12) - - other reserves Translation (45) (205) (5) 1 (254) 140 (114) Balance at 37,336 799 (18) (347) 9,073 22,956 790 23,746 December 2008 (22,879) (1,008) (Loss) profit (2,762) (2,762) 417 (2,345) for the year Comprehensive 779 469 60 (2,465) (1,157) 9 (1,148) income (expense) Total - - (2,762) 779 469 60 (2,465) (3,919) 426 (3,493) comprehensive (expense) income Shares issued 2,498 2,498 2,498 Share-based 122 122 122 payment for share awards Dividends paid (392) (392) (392) Dividends of - (83) (83) subsidiaries Equity 306 306 306 transaction of joint venture Translation (33) 55 (37) 2 (13) (167) (180) Balance at 39,834 1,194 (174) 414 (285) 6,608 21,558 966 22,524 December 2009 (26,033) US Dollar million Balance at 3,608 105 (1,020) (240) 9 (16) (67) 2,379 63 2,442 December 2007 - restated (Loss) profit (1,195) (1,195) 40 (1,155) for the year Comprehensive 104 (9) (29) (561) (495) 3 (492) income (expense) Total - - (1,195) 104 (9) (29) (561) (1,690) 43 (1,647) comprehensive (expense) income Shares issued 1,877 1,877 1,877 Share-based 14 14 14 payment for share awards Dividends paid (41) (41) (41) Dividends of - (17) (17) subsidiaries Acquisition of (111) (111) 1 (110) non-controlling interests Transfers to 1 (1) - - other reserves Translation (35) 29 (2) 8 - (7) (7) Balance at 5,485 85 (2,368) (107) (2) (37) (628) 2,428 83 2,511 December 2008 - restated (Loss) profit (320) (320) 52 (268) for the year Comprehensive 90 55 7 300 452 1 453 income Total - - (320) 90 55 7 300 132 53 185 comprehensive (expense) income Shares issued 320 320 320 Share-based 15 15 15 payment for share awards Dividends paid (45) (45) (45) Dividends of - (11) (11) subsidiaries Equity 37 37 37 transaction of joint venture Translation 24 (6) 3 (8) 13 5 18 Balance at 5,805 161 (2,733) (23) 56 (38) (328) 2,900 130 3,030 December 2009 Rounding of figures may result in computational discrepancies. Notes for the quarter and year ended 31 December 2009 1. Basis of preparation The financial statements in this quarterly report have been prepared in accordance with the historic cost convention except for certain financial instruments which are stated at fair value. Except for the change in accounting policy described in note 15, 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 2008 and revised International Financial Reporting Standards (IFRS) which are effective 1 January 2009, where applicable, with the only significant changes arising from IAS1 (revised) - "Presentation of Financial Statements" and IFRS8 "Operating Segments". As a result of the revision of IAS1, a Statement of comprehensive income, which discloses non owner changes in equity, and a statement of changes in equity are presented. The effects of the adoption of IFRS8 are disclosed in Segmental reporting. 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 year ended 31 December 2009. 2. Revenue Quarter ended Year ended Quarter ended Year ended Dec Sep Dec Dec Dec Dec Sep Dec Dec Dec 2009 2009 2008 2009 2008 2009 2009 2008 2009 2008 Unaudited Unaudited Unaudited Unaudited Audited Unaudited Unaudited Unaudited Unaudited Audited SA Rand million US Dollar million Gold income 9,234 8,512 8,517 30,745 29,774 1,236 1,101 858 3,768 3,619 By-products (note 3) 147 173 147 772 480 20 23 15 94 58 Interest received 133 121 108 444 536 18 16 11 54 66 9,514 8,806 8,771 31,961 30,790 1,273 1,140 884 3,916 3,743 3. Cost of sales Quarter ended Year ended Quarter ended Year ended Dec Sep Dec Dec Dec Dec Sep Dec Dec Dec 2009 2009 2008 2009 2008 2009 2009 2008 2009 2008 Unaudited Unaudited Unaudited Unaudited Audited Unaudited Unaudited Unaudited Unaudited Audited SA Rand million US Dollar million Cash operating costs (4,865) (4,719) (4,948) (18,493) (16,865) (652) (608) (498) (2,234) (2,045) By-products revenue (note 2) 147 173 147 772 480 20 23 15 94 58 By-products cash operating costs (77) (74) (65) (351) (286) (10) (10) (7) (43) (36) (4,795) (4,620) (4,866) (18,072) (16,671) (642) (595) (490) (2,183) (2,023) Other cash costs (222) (222) (196) (833) (734) (30) (29) (20) (100) (90) Total cash costs (5,017) (4,842) (5,062) (18,905) (17,405) (671) (624) (510) (2,283) (2,113) Retrenchment costs (39) (17) (16) (110) (72) (5) (2) (2) (14) (9) Rehabilitation and other non-cash costs 5 (96) 2 (182) (218) 1 (12) - (22) (28) Production costs (5,050) (4,955) (5,076) (19,197) (17,695) (676) (638) (511) (2,319) (2,150) Amortisation of tangible assets (1,152) (1,107) (1,387) (4,615) (4,620) (154) (143) (140) (555) (560) Amortisation of intangible assets (4) (4) (9) (18) (21) - (1) (1) (2) (2) Total production costs (6,206) (6,066) (6,472) (23,830) (22,336) (830) (781) (652) (2,876) (2,712) Inventory change (13) (102) (456) 610 (222) (2) (14) (47) 63 (16) (6,219) (6,168) (6,928) (23,220) (22,558) (833) (796) (698) (2,813) (2,728) Rounding of figures may result in computational discrepancies. 4. (Loss) gain on non-hedge derivatives and other commodity contracts Quarter ended Year ended Quarter ended Year ended Dec Sep Dec Dec Dec Dec Sep Dec Dec Dec 2009 2009 2008 2009 2008 2009 2009 2008 2009 2008 Unaudited Unaudited Unaudited Unaudited Audited Unaudited Unaudited Unaudited Unaudited Audited SA Rand million US Dollar million (Loss) gain on realised non-hedge derivatives (494) (139) (348) 2,476 (1,275) (66) (19) (35) 254 (155) Realised loss on other commodity contracts - - - - (253) - - - - (32) Loss on hedge buy-back costs - (6,315) - (6,315) (8,634) - (797) - (797) (1,088) (Loss) gain on unrealised non-hedge derivatives (2,212) (4,762) 898 (8,095) 3,774 (297) (606) 260 (990) 965 Unrealised gain on other commodity physical borrowings - - 48 - 74 - - 5 - 8 Provision reversed for gain on future deliveries of other commodities - - - - 37 - - - - 5 (2,706) (11,216) 598 (11,934) (6,277) (363) (1,421) 230 (1,533) (297) 5. Other operating income (expenses) Quarter ended Year ended Quarter ended Year ended Dec Sep Dec Dec Dec Dec Sep Dec Dec Dec 2009 2009 2008 2009 2008 2009 2009 2008 2009 2008 Unaudited Unaudited Unaudited Unaudited Audited Unaudited Unaudited Unaudited Unaudited Audited SA Rand million US Dollar million Pension and medical defined benefit provisions 29 (24) 80 (44) 8 4 (3) 8 (5) (2) 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 31 (11) (20) (31) (37) 4 (2) (2) (3) (4) Miscellaneous (2) (1) 1 (5) - - - - - - 58 (36) 61 (80) (29) 8 (5) 6 (8) (6) 6. Operating special items Quarter ended Year ended Quarter ended Year ended Dec Sep Dec Dec Dec Dec Sep Dec Dec Dec 2009 2009 2008 2009 2008 2009 2009 2008 2009 2008 Unaudited Unaudited Unaudited Unaudited Audited Unaudited Unaudited Unaudited Unaudited Audited SA Rand million US Dollar million Indirect tax (expenses) reimbursement (240) 11 148 (219) 198 (32) 1 15 (29) 22 Siguiri royalty payment calculation dispute with the Guinean Administration - - (26) - (26) - - (3) - (3) ESOP costs resulting from rights offer - - - - (76) - - - - (9) Contractor termination costs at Iduapriem - - (10) - (10) - - (1) - (1) Net reversals/ (impairments) of tangible assets (note 8) 5,209 (94) (14,786) 5,115 (14,792) 696 (13) (1,492) 683 (1,493) Impairment of goodwill (note 8) - - (1,080) - (1,080) - - (109) - (109) Recovery of exploration costs - - - - 35 - - - - 4 Recovery (loss) on consignment stock 14 7 - (95) - 2 1 - (12) - Provision for bad debt - Pamodzi Gold - - - (66) - - - - (7) - Insurance claim recovery 54 - - 54 - 7 - - 7 - Net (loss) profit on disposal and abandonment of land, mineral rights, tangible assets and exploration properties (note 8) (275) (156) (55) 420 381 (37) (21) (4) 49 52 Nufcor Uranium Trust contributions by other members (note 8) - - - - 19 - - - - 3 Impairment of investments (note 8) - - (42) - (42) - - (6) - (6) (Loss) profit on disposal of investment in Nufcor International Limited (note 8) - - (4) - 14 - - - - 2 4,761 (231) (15,855) 5,209 (15,379) 636 (31) (1,600) 691 (1,538) Rounding of figures may result in computational discrepancies. 7. Taxation Quarter ended Year ended Quarter ended Year ended Dec Sep Dec Dec Dec Dec Sep Dec Dec Dec 2009 2009 2008 2009 2008 2009 2009 2008 2009 2008 Unaudited Unaudited Unaudited Unaudited Audited Unaudited Unaudited Unaudited Unaudited Audited SA Rand million US Dollar million South African taxation Mining tax (60) 14 - (153) - (8) 2 - (19) - Non-mining tax (10) 77 (18) (89) (85) (1) 10 (2) (10) (12) Over (under) provision prior year 7 (12) 18 (33) (42) 1 (2) 2 (4) (6) Deferred taxation: Temporary differences (180) (44) (446) (535) 161 (24) (6) (45) (61) 30 Unrealised non-hedge derivatives and other commodity contracts 204 1,317 (98) 1,451 (841) 27 167 1 181 (89) Change in estimated deferred tax rate 156 - (62) 156 (62) 21 - (6) 21 (6) Change in statutory tax rate - - 1 - 70 - - - - 9 118 1,353 (605) 797 (799) 16 171 (50) 108 (74) Foreign taxation Normal taxation (335) (262) (231) (1,113) (651) (45) (34) (24) (138) (79) Over (under) provision prior year 90 (27) - 50 41 12 (4) - 7 5 Deferred taxation: Temporary differences (1,410) 393 3,970 (1,220) 3,747 (188) 51 401 (164) 372 Unrealised non-hedge derivatives and other commodity contracts 15 193 (155) 314 (259) 2 24 (15) 40 (27) (1,640) 297 3,583 (1,969) 2,878 (219) 38 363 (255) 271 (1,522) 1,650 2,978 (1,172) 2,079 (204) 209 313 (147) 197 8. Headline (loss) earnings Quarter ended Year ended Quarter ended Year ended Dec Sep Dec Dec Dec Dec Sep Dec Dec Dec 2009 2009 2008 2009 2008 2009 2009 2008 2009 2008 Unaudited Unaudited Unaudited Unaudited Audited Unaudited Unaudited Unaudited Unaudited Audited SA Rand million US Dollar million The profit (loss) attributable to equity shareholders has been adjusted by the following to arrive at headline (loss) earnings: Profit (loss) attributable to equity shareholders 3,179 (8,245) (11,869) (2,762) (16,105) 424 (1,042) (1,016) (320) (1,195) Net (reversals)/ impairments of tangible assets (note 6) (5,209) 94 14,786 (5,115) 14,792 (696) 13 1,492 (683) 1,493 Impairment of goodwill (note 6) - - 1,080 - 1,080 - - 109 - 109 Net loss (profit) on disposal and abandonment of land, mineral rights, tangible assets and exploration properties (note 6) 275 156 55 (420) (381) 37 21 4 (49) (52) Impairment of investments (note 6) - - 42 - 42 - - 6 - 6 Nufcor Uranium Trust contributions by other members (note 6) - - - - (19) - - - - (3) Loss (profit) on disposal of investment in Nufcor International Limited (note 6) - - 4 - (14) - - - - (2) Profit on disposal of discontinued assets - - - - (218) - - - - (27) Impairment and operating special item of investment in associates 1 (2) 347 2 389 - - 35 - 39 Profit on disposal of assets in associate - - - - (30) - - - - (3) Taxation on items above - current portion (12) (48) 3 145 10 (2) (6) - 18 1 Taxation on items above - deferred portion 1,414 (22) (3,933) 1,360 (3,915) 189 (3) (397) 182 (395) Discontinued operations taxation on items above - - - - (6) - - - - (1) (353) (8,068) 516 (6,790) (4,375) (48) (1,018) 234 (852) (30) Cents per share (1) Headline (loss) earnings (96) (2,237) 145 (1,880) (1,379) (13) (282) 66 (236) (9) (1)Calculated on the basic weighted average number of ordinary shares. Rounding of figures may result in computational discrepancies. 9. Number of shares Quarter ended Year ended Dec Sep Dec Dec Dec 2009 2009 2008 2009 2008 Unaudited Unaudited Unaudited Unaudited Audited Authorised number of shares: Ordinary shares of 25 SA cents each 600,000,000 600,000,000 400,000,000 600,000,000 400,000,000 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 number of shares: Ordinary shares in issue 362,240,669 362,003,085 353,483,410 362,240,669 353,483,410 E ordinary shares in issue 3,794,998 3,832,568 3,966,941 3,794,998 3,966,941 Total ordinary shares: 366,035,667 365,835,653 357,450,351 366,035,667 357,450,351 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: Ordinary shares 362,137,200 356,194,586 351,517,689 356,563,773 312,610,124 E ordinary shares 3,809,476 3,848,172 3,980,034 3,873,169 4,046,364 Fully vested options 539,666 622,613 440,430 791,353 547,460 Weighted average number of shares 366,486,342 360,665,371 355,938,153 361,228,295 317,203,948 Dilutive potential of share options 1,205,730 - - - - Diluted number of ordinary shares (1) 367,692,072 360,665,371 355,938,153 361,228,295 317,203,948 (1) The basic and diluted number of ordinary shares is the same for the September 2009 quarter, December 2008 quarter and years ended December 2009 and December 2008 as the effects of shares for performance related options are anti-dilutive. 10. Share capital and premium As at As at Dec Sep Dec Dec Sep Dec(1) 2009 2009 2008 2009 2009 2008 Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited SA Rand million US Dollar million Balance at 38,246 38,246 23,322 5,625 5,625 3,752 beginning of period Ordinary 2,438 2,409 14,946 312 308 1,875 shares issued E ordinary (22) (17) (22) (2) (2) (3) shares cancelled Sub-total 40,662 40,638 38,246 5,935 5,931 5,625 Redeemable (313) (313) (313) (53) (53) (53) preference shares held within the group Ordinary (212) (258) (272) (32) (38) (39) shares held within the group E ordinary (303) (308) (325) (45) (45) (47) shares held within group Balance at 39,834 39,759 37,336 5,805 5,794 5,485 end of period (1) During 2009, the group changed its accounting policy to account for equity using historical rates of exchange. The effect of the change has been calculated retrospectively. 11. Exchange rates Dec Sep Dec 2009 2009 2008 Unaudited Unaudited Unaudited ZAR/USD average for the year to date 8.39 8.70 8.25 ZAR/USD average for the quarter 7.47 7.77 9.92 ZAR/USD closing 7.44 7.51 9.46 ZAR/AUD average for the year to date 6.56 6.48 6.93 ZAR/AUD average for the quarter 6.80 6.47 6.67 ZAR/AUD closing 6.67 6.62 6.57 BRL/USD average for the year to date 2.00 2.08 1.84 BRL/USD average for the quarter 1.74 1.87 2.28 BRL/USD closing 1.75 1.77 2.34 ARS/USD average for the year to date 3.73 3.70 3.16 ARS/USD average for the quarter 3.81 3.83 3.33 ARS/USD closing 3.80 3.84 3.45 Rounding of figures may result in computational discrepancies. 12. Capital commitments Dec Sep Dec Dec Sep Dec 2009 2009 2008 2009 2009 2008 Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited SA Rand million US Dollar million Orders placed and outstanding on capital contracts at the prevailing rate of exchange (1) 976 1,096 775 131 146 82 (1) Includes capital commitments relating to equity accounted joint ventures. Liquidity and capital resources To service the above capital commitments and other operational requirements, the group is dependent on existing cash resources, cash generated from operations and borrowing facilities. Cash generated from operations is subject to operational, market and other risks. Distributions from operations may be subject to foreign investment 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. 13. Contingencies AngloGold Ashanti's material contingent liabilities and assets at 31 December 2009 are detailed below: Contingencies and Guarantees (millions) SA rand US dollar Contingent liabilities Groundwater pollution - South Africa (1) - - Deep groundwater pollution - South Africa (2) - - Sales tax on gold deliveries - Brazil (3) 560 76 Other tax disputes - Brazil (4) 191 25 Withholding taxes - Ghana (5) 67 9 Contingent assets Royalty - Boddington Gold Mine (6) - - Insurance claim - Savuka Gold Mine (7) - - Financial guarantees Oro Group (Pty) Ltd (8) 100 13 918 123 AngloGold Ashanti is subject to contingencies pursuant to environmental laws and regulations that may in future require the group to take corrective action as follows: Groundwater pollution - South Africa - AngloGold Ashanti has identified groundwater contamination plumes at its Vaal River and West Wits operations, which have occurred primarily as a result of seepage from mine residue stockpiles. Numerous scientific, technical and legal studies have been undertaken since 2002 to assist in determining the magnitude of the contamination and to find sustainable remediation solutions. The company has instituted processes to reduce future potential seepage and it has been demonstrated that Monitored Natural Attenuation (MNA) by the existing environment will contribute to improvement in some instances. Furthermore, literature reviews, field trials and base line modelling techniques suggest, but are not yet proven, that the use of phyto-technologies can address the soil and groundwater contamination at all South African operations. Subject to the completion of trials and the technology being a proven remediation technique, no reliable estimate can be made for the obligation at this time. Deep groundwater pollution - South Africa - AngloGold Ashanti has identified a flooding and future pollution risk posed by deep groundwater in the Klerksdorp and Far West Rand gold fields. Various studies have been undertaken by AngloGold Ashanti since 1999. However, due to the interconnected nature of mining operations, any proposed solution needs to be a combined one that is supported by all the mines located in these gold fields. Toward this the Department of Mineral Resources and affected mining companies are now involved in the development of a "Regional Mine Closure Strategy". Nevertheless, in view of the limitation of current information for the accurate estimation of a liability, no reliable estimate can be made for the obligation at this time. Sales tax on gold deliveries - Brazil - Mineração Serra Grande S.A. (MSG), received two tax assessments from the State of Goiás related to payments of sales taxes on gold deliveries for export. The MSG 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. 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. MSG received a tax assessment in October 2003 from the State of Minas Gerais related to sales taxes on gold. The tax administrators rejected the company's appeal against the assessment. The company is now appealing the dismissal of the case. The company's attributable share of the assessment is approximately $8m. AngloGold subsidiaries in Brazil are involved in various disputes with tax authorities. These disputes involve federal tax assessments including income tax, royalties, social contributions and annual property tax. The amount involved is approximately $17m. Withholding Taxes - Ghana - AngloGold Ashanti (Ghana) Limited received a tax assessment for $9m during September 2009 following an audit by the tax authorities related to indirect taxes on various items. Management is of the opinion that the indirect taxes are not payable and the company has lodged an objection. As a result of the sale of the interest in the Boddington Gold Mine joint venture during 2009, the group is entitled to receive a royalty on any gold recovered or produced by the Boddington Gold Mine, where the gold price is in excess of Boddington Gold Mine's cash cost plus $600/oz. The royalty commences on 1 July 2010 and is capped at a total amount of $100m, R744m. On 22 May 2009 an insurable event occurred at Savuka Gold Mine. The amounts due from the insurers are subject to a formula based on lost production, average gold price and average exchange rates subject to various excesses and the production and the preparation of supportable data. The insurable amount is not yet determinable, but management expects that it is likely to exceed $40m, R297m and will be received during the first half of 2010. Provision of surety - South Africa - AngloGold Ashanti has provided sureties in favour of a lender on a gold loan facility with its affiliate Oro Group (Pty) Ltd and one of its subsidiaries to a maximum value of $13m, R100m. The suretyship agreements have a termination notice period of 90 days. 14. Concentration of risk There is a concentration of risk in respect of reimbursable value added tax and fuel duties from the Tanzanian government: Reimbursable value added tax due from the Tanzanian government amounts to $36m at 31 December 2009 (30 September 2009: $25m). The last audited value added tax return was for the period ended 31 October 2009 and at the reporting date the audited amount was $28m. The outstanding amounts at Geita have been discounted to their present value at a rate of 7.82%. Reimbursable fuel duties from the Tanzanian government amounts to $48m at 31 December 2009 (30 September 2009: $48m). 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 $44m have been lodged with the Customs and Excise authorities, whilst claims for refund of $4m have not yet been lodged. The outstanding amounts have been discounted to their present value at a rate of 7.82%. 15. Change in accounting policy In terms of IAS 21 "The Effects of Changes in Foreign Exchange Rates", the group has previously presented equity at the closing rate of exchange. During the current year the group changed its accounting policy to account for equity using historical rates of exchange. Management's judgement is that the change in accounting policy will provide more relevant and reliable information when the group is compared to its gold mining peers, as they report their equity at historical rates of exchange. The effects of the change in accounting policy have been calculated retrospectively and are as follows as at 31 December 2008 and 2007: Share capital and premium - US Dollar million 2008 2007 Previously at closing rate 3,425 3,292 Restated at historical rate 3,752 3,713 Impact on translation 327 421 16. Borrowings AngloGold Ashanti's borrowings are interest bearing. 17. Announcements On 25 November 2009, AngloGold Ashanti announced that the finalisation of the sale of the Tau Lekoa mine together with the adjacent Weltevreden, Jonkerskraal and Goedgenoeg project areas to Simmer and Jack Mines Limited, as announced on 17 February 2009, which was anticipated to close at the earliest on 1 January 2010 may be delayed. All suspensive conditions to the sale have been fulfilled except for the approval of the Department of Mineral Resources (DMR) of the transfer of the applicable mining rights. The approval is expected to occur during 2010 and the duration of the interim period provided for in the sale agreement will therefore be extended. On 22 December 2009, AngloGold Ashanti reported the completion of the further acquisition as announced on 2 November 2009 that, together with Randgold Resources Limited ("Randgold'), they had jointly entered into an agreement with L'Office des Mines d'Or de Kilo-Moto ("OKIMO") to purchase two-thirds of OKIMO's 30% stake in the Kibali gold project (formerly the Moto gold project) for $113.6m (AngloGold Ashanti acquiring an effective additional 10% interest for $56.8m). This follows an announcement on 15 October 2009 that, together with Randgold, it had completed the acquisition of Moto Goldmines Limited, the gold exploration and development company which held a 70% interest in the project. OKIMO is a Congolese parastatal entity. Following completion of the transaction, Randgold and AngloGold Ashanti together hold a 90% interest in the project, and OKIMO holds the remaining 10% stake, maintaining the continued vested interest of the Government of the Democratic Republic of the Congo (the "DRC") in the Kibali gold project. On 29 December 2009, AngloGold Ashanti Limited announced that in terms of its pre-emptive rights, it together with IAMGOLD Corporation had closed a transaction with the International Finance Corporation ("IFC") for the purchase of the IFC's 6% stake in Société d'Exploitation des Mines d'or de Sadiola ("SEMOS"), which owns the Sadiola Gold Mine for a total upfront consideration of $24m (AngloGold Ashanti $12m) to be followed by contingent payments during 2010, 2011 and 2012 not exceeding in total $3m (AngloGold Ashanti $1.5m). This transaction has resulted in AngloGold Ashanti and IAMGOLD each increasing their respective interest in Sadiola from 38% to 41%. In addition, AngloGold Ashanti and IAMGOLD have extended an offer to the Republic of Mali to take up its proportionate entitlement of 19.15% of the 6% sale interest, by acquiring an equal 0.574% interest in SEMOS from each of them on terms proportionately identical to those set out above, on or before 31 March 2010. 18. Dividend The directors declared Final Dividend No. 107 of 70 (Final Dividend No. 105: 50) South African cents per ordinary share for the year ended 31 December 2009. 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. 2010 Currency conversion date for UK pounds, Australian dollars and Thursday, 4 Ghanaian cedis March Last date to trade ordinary shares cum dividend Friday, 5 March Last date to register transfers of certificated securities cum Friday, 5 dividend March Ordinary shares trade ex dividend Monday, 8 March Record date Friday, 12 March Payment date Friday, 19 March On the payment date, dividends due to holders of certificated securities on the South African share register will either be electronically transferred to shareholders' bank accounts or, in the absence of suitable mandates, dividend cheques will be posted to such shareholders. Dividends in respect of dematerialised shareholdings will be credited to shareholders' accounts with the relevant CSDP or broker. To comply with the further requirements of Strate, between Monday, 8 March 2010 and Friday, 12 March 2010, 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. 2010 Ex dividend on New York Stock Wednesday, 10 March Exchange Record date Friday, 12 March Approximate date for currency Friday, 19 March conversion Approximate payment date of Monday, 29 March dividend Assuming an exchange rate of R7.69/$, the dividend payable per ADS is equivalent to 9.10 US cents. This compares with the final dividend of 4.99 US cents per ADS paid on 23 March 2009. 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. 2010 Last date to trade and to Friday, 5 March register GhDSs cum dividend GhDSs trade ex dividend Monday, 8 March Record date Friday, 12 March Approximate payment date of Monday, 22 March dividend Assuming an exchange rate of R1/¢0.1863, the dividend payable per GhDS is equivalent to 0.1304 cedis. This compares with the final dividend of 0.06565 cedis per Ghanaian Depositary Share (GhDS) paid on 16 March 2009. 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 declared Dividend No. E7 of 35 South African cents per E ordinary share, payable to employees participating in the Bokamoso ESOP and Izingwe Holdings (Proprietary) Limited. These dividends will be paid on Friday, 19 March 2010. 19. Detailed report This report contains a summary of the results of AngloGold Ashanti's operations. A detailed report appears on the internet and is obtainable in printed format from the investor relations contacts, whose details, along with the website address, appear at the end of this report. By order of the Board R P EDEY M CUTIFANI Chairman Chief Executive Officer 16 February 2010 Shareholders' notice board Diary: Financial year-end 31 December Annual financial statements posting on or about 26 March 2010 Annual general meeting 11:00 SA time 7 May 2010 Quarterly reports released: Quarter ended 31 March 2010 7 May 2010 Quarter ended 30 June 2010 12 August 2010 Quarter ended 30 September 2010 11 November 2010 Quarter ended 31 December 2010 *10 February 2011 Dividends / Declared Last date to Payment date to Payment date to ADS trade shareholders holders Dividend Number ordinary shares cum dividend Interim - 29 July 14 August 28 August 2009 8 September 2009 No. 106 2009 2009 Final - No. 16 February 5 March 2010 19 March 2010 29 March 2010 107 2010 Interim- No. *10 August *27 August *10 September 2010 *20 September 2010 108 2010 2010 * Proposed dates. Dividend policy: Dividends are proposed by, and approved by the board of directors of AngloGold Ashanti, based on the interim and year-end financial statements. Dividends are recognised when declared by the board of directors of AngloGold Ashanti. AngloGold Ashanti expects to continue to pay dividends, although there can be no assurance that dividends will be paid in the future or as to the particular amounts that will be paid from year to year. The payments of future dividends will depend upon the Board's ongoing assessment of AngloGold Ashanti's earnings, after providing for long-term growth and cash/ debt resources, the amount of reserves available for dividend using going concern assessment and restrictions placed by the conditions of the convertible bond and other factors. Withholding tax: On 21 February 2007, the South African Government announced a proposal to replace Secondary Tax on Companies with a 10% withholding tax on dividends and other distributions payable to shareholders. This proposal is expected to be implemented in 2010. Although this may reduce the tax payable by the South African operations of the group thereby increasing distributable earnings, the withholding tax will generally reduce the amount of dividends or other distributions received by AngloGold Ashanti shareholders. Annual general meeting: Shareholders on the South African register who have dematerialised their shares in the company (other than those shareholders whose shareholding is recorded in their own name in the sub-register maintained by their CSDP) and who wish to attend the annual general meeting in person, will need to request their CSDP or broker to provide them with the necessary authority in terms of the custody agreement entered into between them and the CSDP or broker. Voting rights: The articles of association provide that every member present at a meeting in person or, in the case of a body corporate, represented, is entitled to one vote only on a show of hands. Upon a poll, members present or any duly appointed proxy shall have one vote for every share held. There are no limitations on the right of non-South African shareholders to hold or exercise voting rights attaching to any shares of the company. CDI holders are not entitled to vote in person at meetings, but may vote by way of proxy. Options granted in terms of share incentive schemes do not carry a right to vote. Change of details: Shareholders are reminded that the onus is on them to keep the company, through its nominated share registrars, apprised of any change in their postal address and personal particulars. Similarly, where shareholders receive dividend payments electronically (EFT), they should ensure that the banking details which the share registrars and/or CSDPs have on file are correct. Administrative information AngloGold Ashanti Limited Registration No. 1944/017354/06 Incorporated in the Republic of South Africa Share codes: ISIN: ZAE000043485 JSE: ANG LSE: AGD NYSE: AU ASX: AGG GhSE (Shares): AGA GhSE (GhDS): AAD 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 Australia Level 13, St Martins Tower 44 St George's Terrace Perth, WA 6000 (PO Box Z5046, Perth WA 6831) Australia Telephone: +61 8 9425 4602 Fax: +61 8 9425 4662 Ghana Gold House Patrice Lumumba Road (PO Box 2665) Accra Ghana Telephone: +233 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 Directors Executive M Cutifani (Chief Executive Officer) S Venkatakrishnan * (Chief Financial Officer) Non-Executive R P Edey * (Chairman) Dr T J Motlatsi ? (Deputy Chairman) F B Arisman # W A Nairn ? Prof W L Nkuhlu ? S M Pityana ? * British # American Australian ? South African Officers Company Secretary: Ms L Eatwell Investor Relations Contacts South Africa Sicelo Ntuli Telephone: +27 11 637 6339 Fax: +27 11 637 6400 E-mail: sntuli@AngloGoldAshanti.com United States Stewart Bailey Telephone: +1-212-836-4303 Mobile: +1-646-717-3978 E-mail: sbailey@AngloGoldAshanti.com General E-mail enquiries investors@AngloGoldAshanti.com AngloGold Ashanti website http://www.AngloGoldAshanti.com Company secretarial E-mail Companysecretary@AngoGoldAshanti.com AngloGold Ashanti posts information that is important to investors on the main page of its website at www.anglogoldashanti.com and under the "Investors" tab on the main page. This information is updated regularly. Investors should visit this website to obtain important information about AngloGold Ashanti. PUBLISHED BY ANGLOGOLD ASHANTI 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 United Kingdom Computershare Investor Services PLC The Pavilions Bridgwater Road Bristol BS99 7NH England Telephone: +44 870 702 0000 Fax: +44 870 703 6119 Australia Computershare Investor Services Pty Limited Level 2, 45 St George's Terrace Perth, WA 6000 (GPO Box D182 Perth, WA 6840) Australia Telephone: +61 8 9323 2000 Telephone: 1300 55 2949 (in Australia) Fax: +61 8 9323 2033 Ghana NTHC Limited Martco House Off Kwame Nkrumah Avenue PO Box K1A 9563 Airport Accra Ghana Telephone: +233 21 229664 Fax: +233 21 229975 ADR Depositary The Bank of New York Mellon ("BoNY") BNY Shareowner Services PO Box 358016 Pittsburgh, PA 15252-8016 United States of America Telephone: +1 800 522 6645 (Toll free in USA) or +1 201 680 6578 (outside USA) E-mail: shrrelations@mellon.com Website: www.bnymellon.com.comshareowner Global BuyDIRECTSM BoNY maintains a direct share purchase and dividend reinvestment plan for AngloGold Ashanti. Telephone: +1-888-BNY-ADRS Certain statements made in this communication, including, without limitation, those concerning AngloGold Ashanti's strategy to reduce its gold hedging position including the extent and effects of the reduction, the economic outlook for the gold mining industry, expectations regarding gold prices, production, cash costs and other operating results, growth prospects and outlook of AngloGold Ashanti's operations, individually or in the aggregate, including the completion and commencement of commercial operations of certain of AngloGold Ashanti's exploration and production projects and completion of acquisitions and dispositions, AngloGold Ashanti's liquidity and capital resources, and expenditure and the outcome and consequences of any pending litigation proceedings, 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. For a discussion of such factors, refer to AngloGold Ashanti's annual report for the year ended 31 December 2008, which was distributed to shareholders on 27 March 2009 and the company's annual report on Form 20-F, filed with the Securities and Exchange Commission in the United States on May 5, 2009 and amended on May 6, 2009. AngloGold Ashanti undertakes no obligation to update publicly or release any revisions to these forward-looking statements to reflect events or circumstances after today's date or to reflect the occurrence of unanticipated events. 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. AngloGold Ashanti posts information that is important to investors on the main page of its website at www.anglgoldashanti.com and under the "Investors" tab on the main page. This information is updated regularly. Investors should visit this website to obtain important information about AngloGold Ashanti END
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