Company financial statements

for the year ended 31 December 2004
Figures in million				2004	2003
				SA Rands
1	Revenue
	Revenue consists of the following principal categories:
	Gold income			7,749	8,845
	Sale of uranium, silver and sulphuric acid			253	215
	Interest receivable			183	185
				8,185	9,245
2	Cost of sales
	Cash operating costs			5,715	6,174
	Other cash costs			53	52
	Total cash costs			5,768	6,226
	Retrenchment costs (Note 8)			52	27
	Rehabilitation and other non-cash costs			165	75
	Production costs			5,985	6,328
	Amortisation of tangible assets (Notes 7,10 and 22)			753	415
	Total production costs(1)			6,738	6,743
	Decrease in inventories			36	19
				6,774	6,762
	(1)	A reassessment has been made of the useful life of on-reef ore reserve development expenditure with effect 1 January 2004. The impact of the reassessment is that costs are expensed over a longer period than was previously estimated. The effect of the change on the current year's results is a decrease in cash operating costs of R606m, an increase in amortisation of tangible assets of R261m resulting in a net decrease of total production costs of R345m.
		The effect on future periods is not determinable.
3	Other operating expenses
	Post-retirement medical expenses for disposed mines and medical aid scheme losses			27	101
4	Abnormal items
	Abnormal items consist of the following items:
	Provision for post-retirement medical liability			-	214
	Reversal of over-provisions in decommissioning (Note 18)			-	(46)
	Reversal of over-provisions in restoration (Note 18)			-	(46)
	Abnormal items before taxation (Note 22)			-	122
	Taxation
	-	Current taxation on foreign exchange losses on borrowings (Note 9)		-	(59)
	-	Deferred taxation (Note 9)		-	56
		-	provision for post-retirement medical liability	-	98
		-	over-provisions in decommissioning and restoration liabilities	-	(42)
	Abnormal items after taxation			-	119
Figures in million				2004	2003
				SA Rands
5	Other net income
	Profit from associates after taxation (Note 22 and Group Note 20)			1	12
	Foreign exchange loss on transactions other than sales			-	(2)
				1	10
6	Finance costs and unwinding of decommissioning obligation
	Finance costs on bank loans and overdrafts			6	98
	Finance costs on corporate bond			215	73
	Other finance costs			79	14
				300	185
	Less: amounts capitalised (Note 10)			(67)	-
				233	185
	Unwinding of decommissioning obligation (Note 18)			43	11
	(Note 22)			276	196
7	(Loss) profit before taxation
	(Loss) profit before taxation is arrived at after taking account of:
	Auditors' remuneration
		- Statutory audit fees		7	5
		- Under provision prior year		1	-
		- Other assurance services		2	2
	Other professional services(1)			8	-
				18	7
	(1)	Other professional services include valuations, internal audit, consultancy services, tax advisory services and remuneration and technical reviews.
	Amortisation of tangible assets (Notes 2, 10 and 22)
	Owned assets			753	415
	Grants for educational and community development			24	29
	Operating lease charges			27	29
	At 31 December 2004, the company was committed to making the following payments in respect of operating leases for amongst others, hire of plant and machinery and land and buildings:
	Expiry within:
		- One year		5	-
		- Between 1-2 years		1	9
		- Between 2-5 years		3	-
		- After 5 years		1	-
				10	9
Figures in million				2004	2003
				SA Rands
8	Employee benefits
	Employee benefits including executive directors' salaries and other benefits			3,479	3,197
	Health care and medical scheme costs
	-  current medical expenses			217	246
	-  defined benefit post-retirement medical expense (Note 18)			116	226
	Contributions to pension and provident plans
	-  defined contribution			187	151
	-  defined benefit			34	62
	Retrenchment costs (Note 2)			52	27
	Included in cost of sales and other operating expenses			4,085	3,909
	Defined benefit pension plan expense
	-  current service cost			40	32
	-  interest cost			92	106
	-  expected return on plan assets			(95)	(92)
	-  recognised past service cost			-	16
	-  actuarial gain			(3)	-
	(Note 18)			34	62
	Defined benefit post-retirement medical expense
	-  current service cost			3	3
	-  interest cost			104	89
	-  recognised past service cost			9	134
	(Note 18)			116	226
	Actual return on plan assets
	Defined benefit pension plan (Note 18)			219	120
9	Taxation
	Current taxation
	Mining taxation			-	27
	Non-mining taxation			229	108
	Under provision prior year			-	30
	Taxation on abnormal items (Note 4)			-	(59)
	Capital gains tax			-	38
	Recoupments tax on Free State disposal			-	(6)
				229	138
	Deferred taxation
	Temporary differences			132	512
	Unrealised non-hedge derivatives			(199)	286
	Taxation on abnormal items (Note 4)			-	(56)
	Impairment			-	(113)
	Change in estimated deferred tax rate(1)			(803)	-
	(Note 19)			(870)	629
				(641)	767
	(1)	During 2004 the estimates were revised to reflect the future anticipated taxation rate at the time the temporary differences reverse.

	Tax reconciliation
	A reconciliation of the mining and non-mining tax rate compared with that charged in the income statement is set out in the following table:
				2004		2003
			Non-mining %	Mining %	Non-mining %	Mining %
	Future anticipated tax rate		38	38	38	46
	Disallowed expenditure		(2)	14	4	12
	Non-mining losses transferred to mining taxation		-	-	(1)	1
	Mining capital allowances without tax cover		-	(28)	-	4
	Non-taxable profit based on Gold Formula		-	-	-	4
	Dividends received		-	-	(13)	-
	Taxable items not forming part of the income statement		(6)	(1)	12	-
	Royalties		-	-	-	(28)
	Other		(2)	2	2	3
	Impact of prior year under provisions		(33)	-	-	-
	Change in estimated deferred tax rate		-	(154)	-	-
	Effective tax rate		(5)	(129)	42	42
	Add back:
	Impact of prior year under provisions		33	-	-	-
	Change in estimated deferred tax rate		-	154	-	-
	Adjusted effective tax rate		28	25	42	42
10	Tangible assets
		Mine development costs	Mine infra- structure	Mineral rights, dumps and exploration properties	Land	Total
SA Rands
	Cost
	Balance at beginning of year	11,046	3,438	699	20	15,203
	Additions
	- expand operations	829	188	5	-	1,022
	- maintain operations	1,001	82	-	-	1,083
	Transfers and other movements	66	(4)	2	-	64
	Finance costs capitalised (Note 6)	67	-	-	-	67
	Balance at end of year	13,009	3,704	706	20	17,439
	Accumulated amortisation
	Balance at beginning of year	3,672	2,260	110	-	6,042
	Amortisation for the year
	(Notes 2, 7 and 22)	627	85	41	-	753
	Transfers and other movements	19	(19)	-	-	-
	Balance at end of year	4,318	2,326	151	-	6,795
	Net book value at 31 December 2004	8,691	1,378	555	20	10,644
	Net book value at 31 December 2003	7,374	1,178	589	20	9,161
	The capitalisation rate used to determine the amount of borrowing costs eligible for capitalisation is 10.65%.

Figures in million			2004	2003
			SA Rands
11	Other investments
	Unlisted investments
	Balance at beginning of year		17	18
	Disposals		-	(1)
	Balance at end of year (Note 25)		17	17
	Directors' valuation of unlisted investments		17	17
12	Inventories
	Gold in process		165	201
	Gold on hand		1	-
	By-products		77	39
	Total metal inventories		243	240
	Consumable stores		177	149
			420	389
13	AngloGold Environmental Rehabilitation Trust
	Balance at beginning of year		230	185
	Contributions		35	45
	Balance at end of year		265	230
14	Other non-current assets
	Unsecured
	Defined benefit pension net asset (Note 18)		44	-
	Loans and receivables originated
	Deferred purchase consideration in respect of the sale of the Free State assets		-	360
	Other		10	10
			54	370
	Less: Current portion of non-current assets included in current assets		1	1
	Balance at end of year (Note 25)		53	369
15	Trade and other receivables
	Trade debtors		75	120
	Prepayments and accrued income		58	190
	Value added taxation		53	77
	Other debtors		191	148
	(Note 25)		377	535
Figures in million			2004	2003
			SA Rands
16	Cash and cash equivalents
	Cash and deposits on call		92	1,023
	Money market instruments		-	863
	(Note 25)		92	1,886
17	Borrowings
	Unsecured
	Corporate Bond (1)		2,057	2,052
	Syndicated loan facility		-	1,555
	Total borrowings (Note 25)		2,057	3,607
	Less: Current portion of borrowings included in current liabilities		73	1,627
	Total long-term borrowings		1,984	1,980
	Amounts falling due:
	Within one year		73	1,627
	Between two and five years		1,984	1,980
	(Note 25)		2,057	3,607
	Currency
	The currency in which the borrowings are denominated is as follows:
	SA rands		2,057	2,052
	US dollars		-	1,555
			2,057	3,607
	Undrawn facilities
	Undrawn borrowing facilities as at 31 December 2004 are as follows:
	Syndicated loan - US dollar		-	1,120
	(1) Corporate bond
	Senior unsecured fixed rate bond		2,000	2,000
	Less: Unamortised discount and bond issue costs		16	20
			1,984	1,980
	Add: accrued interest		73	72
			2,057	2,052
	On 21 August 2003, AngloGold Ashanti launched and priced an issue of senior unsecured fixed rate bond in an aggregate principal amount of R2,000m, with semi-annual coupons payable at a rate of 10.5% per annum. This bond is repayable on 28 August 2008.
Figures in million			2004	2003
			SA Rands
18	Provisions
	Defined benefit post-retirement medical provision
	Balance at beginning of year		850	680
	Charge to income statement (Note 8)		116	226
	Utilised during the year		(117)	(56)
	Balance at end of year		849	850
	The provision for post-retirement medical funding represents the provision for health care benefits for employees and retired employees and their registered dependants. The post-retirement benefit costs are assessed in accordance with the adviceof independent professionally qualified actuaries. The actuarial method used is the projected unit credit funding method. The assumptions used in calculating the above defined benefit post-retirement medical obligation are as follows:		%	%
	Discount rate		9.0	10.0
	Expected increase in health care costs		5.0	5.0
	The normal retirement age is 60 years, and fully eligible age is 55 years. The last statutory valuation was performed as at 31 December 2002.  Calculations are performed in the years when a statutory valuation is not performed and events and movements that could impact the valuation between the date of the interim valuation performed at 30 September 2004 and the date of the balance sheet have been considered. The South African post-retirement medical plan is an unfunded plan.
	The date of the next statutory actuarial valuation is 31 December 2005.
	Defined benefit pension plan (Note 21)
	Balance at beginning of year		-	-
	Expense per income statement (Note 8)		34	62
	Contributions paid - company		(78)	(62)
	Transferred to other non-current assets (Note 14)		(44)	-
	Defined benefit pension fund
	Present value of fund obligation		1,218	1,089
	Fair value of fund assets		(1,150)	(920)
			68	169
	Unrecognised actuarial loss		(112)	(169)
	Recognised asset on balance sheet		(44)	-
	Market value of plan assets (Group Note 30)		1,150	920
	Plan assets are made up as follows:
	Domestic equities		633	549
	Foreign equities		112	75
	Domestic fixed interest bonds		329	191
	Foreign fixed interest bonds		34	34
	Cash		42	71
			1,150	920
	Actual return on plan assets
	Expected return on plan assets		95	92
	Actuarial gain on plan assets		124	28
	(Note 8)		219	120
	The assumptions used in calculating the above defined benefit  pension plan obligation are as follows:
			%	%
	Discount rate		7.5	8.5
	Pension increase		2.9	3.6
	Rate of compensation increase		5.0	5.0
	Expected return on plan assets		7.5	8.5
	The rate of compensation increase assumption is 5% for 2005 and 4% thereafter.
	A statutory valuation of the defined benefit pension fund was performed as at 31 December 2002, which showed that the fund was in deficit. The rate of the company contribution to the fund was reviewed and increased during the year.  A formal additional funding plan was submitted and approved by the Financial Services Board. According to this plan, the company funded R32m in 2004 and a further R167m in real terms will be funded from 2005 to 2011. In arriving at their conclusions, the actuaries took into account reasonable long-term estimates of inflation, increases in wages, salaries and pension as well as returns on investments. Calculations for the pension fund's financial position are carried out in yearswhen a statutory valuation is not performed and events and movements that could impact on the valuation between the date of the interim valuation performed at 30 September 2004 and the balance sheet date have been considered.
	The date of the next statutory actuarial valuation is 31 December 2005.
	All funds are governed by the Pension Funds Act of 1956 as amended.
	Environmental rehabilitation obligations
	Provision for decommissioning
	Balance at beginning of year		191	226
	Change in estimates(1)		64	-
	Unwinding of decommissioning obligation (Note 6)		43	11
	Reversal of overprovision in decommissioning (Note 4)		-	(46)
	Balance at the end of year		298	191
	Provision for restoration
	Balance at beginning of year		133	162
	Reversal of overprovision (Note 4)		-	(46)
	Charge to income statement		86	17
	Balance at end of year		219	133
	Total environmental rehabilitation obligation		517	324
	Total provisions		1,366	1,174
	(1)	The change in estimate relates to adjustments required as a result of regulatory requirements. The effect of the change in estimates for the current year is an increase in the decommissioning asset of R64m. The effect on future periods is not determinable.
Figures in million			2004	2003
			SA Rands
19	Deferred taxation
	Deferred taxation relating to temporary differences is made up as follows:
	Liabilities
	Tangible assets		3,386	3,927
	Inventories		57	93
	Derivatives		159	119
	Other		17	36
			3,619	4,175
	Assets
	Provisions		411	498
	Derivatives		257	264
	Tax losses		130	-
			798	762
	Deferred taxation liability		2,821	3,413
	The movement on the deferred tax liability is as follows:
	Balance at beginning of year		3,413	2,692
	Income statement charge (Note 9)		(870)	629
	Taxation of other comprehensive income		278	92
	Balance at end of year		2,821	3,413
20	Trade and other payables
	Trade creditors		395	335
	Accruals		218	142
	Other creditors		571	715
	Accrued purchase consideration for mineral rights acquired  from Gold Fields Limited		-	315
	(Note 25)		1,184	1,507
21	Defined contribution retirement benefits
	South Africa contributes to various industry-based pension and provident retirement plans which cover substantially all employees and are defined contribution plans. These plans are all funded and the assets of the schemes are held in administered funds separately from the company's assets. The cost of providing these benefits amounted to R187m (2003: R151m) during the year.
22	Cash generated from operations
	(Loss) profit before taxation		(180)	1,808
	Adjusted for:
	Non-cash movements		98	14
	Movement on non-hedge derivatives		986	(633)
	Amortisation of tangible assets (Notes 2, 7 and 10)		753	415
	Interest receivable (Note 1)		(183)	(185)
	Profit from associates after taxation (Note 5)		(1)	(12)
	Abnormal items (Note 4)		-	122
	Finance costs and unwinding of decommissioning obligation (Note 6)		276	196
	Amortisation of intangible asset of associate		4	5
	Impairment of tangible assets		-	247
	Debt written off		-	9
	Profit on disposal of assets		(4)	(10)
	Movements in working capital		(225)	197
			1,524	2,173
	Movements in working capital:
	(Increase) decrease in inventories		(30)	8
	Decrease (increase) in trade and other receivables		69	(139)
	(Decrease) increase in trade and other payables		(264)	328
			(225)	197

23	Related parties
	Related party transactions are concluded on an arm's length basis. Details of material transactions with those related parties not dealt with elsewhere in the financial statements are summarised below:
			2004		2003
	SA Rands		Purchases from related parties	Amounts owed to related parties	Purchases from related parties	Amounts owed to related parties
	Holding company Anglo American plc(1)		34	-	14	-
	Fellow subsidiaries of the Anglo American plc group
	Anglo Coal - a division of Anglo Operations Limited		6	2	-	-
	Boart Longyear Limited - mining services		48	5	77	7
	Mondi Limited - timber		101	10	86	7
	Scaw Metals - a division of Anglo Operations Limited
	- steel and engineering		89	5	86	7
	Associates
	Rand Refinery Limited - gold refinery(2)				18	-
	Management fees, royalties and dividends from subsidiaries amounted to R31m (2003: R205m).

	(1)	Where the presentation or classification of an item has been amended, comparative amounts have been reclassified to ensure comparability with the current period. Transactions with Anglo American plc, previously omitted, have been included in the prior year. The amendments have been made to provide users of the financial statements with additional information.
	(2)	Rand Refinery was consolidated from 31 December 2003. Prior to this date, Rand Refinery was equity accounted.

24	Commitments
	Figures in million	2004	2003
		SA Rands
	Acquisition of tangible assets
	Contracted for	551	569
	Not contracted for	3,195	2,856
	Authorised by the directors	3,746	3,425
	Allocated for:
	Expansion of operations
	- within one year	1,285	478
	- thereafter	833	1,453
		2,118	1,931
	Maintenance of operations
	- within one year	610	91
	- thereafter	1,018	1,403
		1,628	1,494
	This expenditure will be financed from existing cash resources and future borrowings.
25	Financial risk management activities
	In the normal course of its operations, the company is exposed to gold price, currency, interest rate, liquidity and credit risks. In order to manage these risks, the company may enter into transactions which make use of both on- and off-balance sheet derivatives. The company does not acquire, hold or issue derivatives for trading purposes. The company has developed a comprehensive risk management process to facilitate, control and to monitor these risks. The board has approved and monitors this risk management process, inclusive of documented treasury policies, counterpart limits, controlling and reporting structures. Controlling risk in the company The Executive Committee and the Treasury Committee are responsible for risk management activities within the company. The Treasury Committee, chaired by the independent chairman of the AngloGold Ashanti Audit and Corporate Governance Committee, comprising executive members and treasury executives, reviews and recommends to the Executive Committee all treasury counterparts, limits, instruments and hedge strategies. The treasurer is responsible for managing investment, gold price, currency, liquidity and credit risk. Within the treasury function, there is an independent risk function, which monitors adherence to treasury risk management policy, counterpart and dealer limits and provides regular and detailed management reports. Gold price and currency risk and cash flow hedging Gold price risk arises from the risk of an adverse effect on current or future earnings resulting from fluctuations in the price of gold. The gold market is predominately priced in dollars which exposes the company to the risk that fluctuations in the SA rand/US dollar exchange rates may also have an adverse effect on current or future earnings. A number of products, including derivatives, are used to manage well-defined gold price and foreign exchange risks that arise out of the company's core business activities. Forward-sales contracts and call and put options are used by the company to protect itself from downward fluctuations in the gold price. These derivatives may establish a minimum price for a portion of future production while maintaining the ability to benefit from increases in the gold price for the majority of future gold production. Some of the instruments described above are designated and accounted for as cash flow hedges. The hedge forecast transactions are expected to occur over the next 10 years in line with the maturity dates of the hedging instruments and will affect profit and loss simultaneously in an equal and opposite way.

	Hedge book restructure
	Refer Note 38 in group financial statements.
	Net delta open hedge position as at 31 December 2004
	The company had the following net forward-pricing commitments outstanding against future production.
	Table A: Summary: All open contracts in the company's gold hedge position at 31 December 2004
	Year		2005	2006	2007	2008	2009	2010-2014	Total
	Dollar/Gold
	Forward contracts
	Amount (kg)		31,319	9,055	106	4,588	5,964	10,964	61,996
	$/oz		$397	$344	$810	$386	$440	$479	$408
	Restructure longs*
	Amount (kg)		17,676						17,676
	$/oz		$440						$440
	Put options purchased
	Amount (kg)		1,866	4,354					6,220
	$/oz		$393	$372					$378
	Put options sold
	Amount (kg)		5,288	4,354		855	1,882	9,409	21,788
	$/oz		$389	$339		$390	$400	$430	$398
	Call options purchased
	Amount (kg)		9,767	9,269	4,354				23,390
	$/oz		$317	$327	$336				$325
	Call options sold
	Amount (kg)		16,983	19,261	18,203	18,390	20,147	55,846	148,830
	$/oz		$345	$370	$371	$384	$404	$458	$407
	Rand/Gold
	Forward contracts
	Amount (kg)						933		933
	Amount R/kg						R116,335		R116,335
	Put options purchased
	Amount (kg)			1,875					1,875
	R/kg			R93,602					R93,602
	Put options sold
	Amount (kg)		8,025	1,400					9,425
	R/kg		R80,840	R88,414					R81,965
	Call options sold
	Amount (kg)		12,657	4,517	311		2,986	5,972	26,443
	R/kg		R88,509	R102,447	R108,123		R202,054	R223,756	R134,486
	Total net gold
	Delta (kg)**		(28,290)	(345)	11,300	19,434	22,713	51,851	76,663
	Delta (oz)**		(909,524)	(11,092)	363,295	624,803	730,223	1,667,010	2,464,715
	*	At 31 December 2004 the company was in the process of restructuring the hedge book and acquired a long spot position in gold. This long gold position will be applied to the restructure during the first quarter of 2005.
	**	The delta position indicated above reflects the nominal amount of the option multiplied by the mathematical probability of the option being exercised. This is calculated using the Black-Scholes option formula with the ruling market prices, interest rates and volatilities as at 31 December 2004.

	Table B: Summary: All open contracts in the company's currency hedge position at 31 December 2004
	Year	2005	2006	2007	2008	2009	2010-2014	Total
	Forward contracts
	Amount ($)	130,509						130,509
	R per $	R5.71						R5.71
	Call options sold
	Amount ($)	65,000						65,000
	R per $	R5.72						R5.72
	The mix of hedging instruments, the volume of production hedged and the tenor of the hedging book is continually reviewed in the light of changes in operational forecasts, market conditions and the company's hedging policy. Forward sales contracts require the future delivery of gold at a specified price. A put option gives the put buyer the right, but not the obligation, to sell gold to the put seller at a predetermined price on a predetermined date. A call option gives the call buyer the right, but not the obligation, to buy gold from the call seller at a predetermined price on a predetermined date. Interest rate and liquidity risk Refer Note 38 in group financial statement.

	Investment maturity profile
	Maturity date		Currency	Fixed rate investment amount million	Effective rate %	Floating rate investment amount million	Effective rate %
	Less than one year		ZAR	-	-	92	6.0
	Borrowings maturity profile (Note 17)			Within one year		Between one and five years
			Currency	Borrowings amount million	Effective rate %	Borrowings amount million	Effective rate %
			ZAR	73(1)	-	1,984	10.5
	Interest rate risk			Within one year		Between one and five years
			Currency	Borrowings amount million	Effective rate %	Borrowings amount million	Effective rate %
			ZAR	73(1)	-	1,984	10.5

	(1)	Represents the interest accrual on the corporate bond as at 31 December 2004
	Interest rate swaps Refer Note 38 in group financial statements Credit Risk Refer Note 38 in group financial statements

	Fair value of financial instruments
	The estimated fair values of financial instruments are determined at discrete points in time based on relevant market information. These estimates involve uncertainties and cannot be determined with precision. The estimated fair values of the company's financial instruments as at 31 December 2004 are as follows:
	Type of instrument
			2004		2003
	Figures in million	Carrying amount	Fair value	Carrying Amount	Fair Value
	SA Rands
	Other investments (Note 11)	17	17	17	17
	Other non-current assets (Note 14)	9	9	369	369
	Trade and other receivables (Note 15)	377	377	535	535
	Cash and cash equivalents (Note 16)	92	92	1,886	1,886
	Borrowings (Note 17)	2,057	2,207	3,607	3,673
	Trade and other payables (Note 20)	1,184	1,184	1,507	1,507
	Derivatives comprise the following:	(271)	(2,158)	(468)	(2,132)
	Forward sale commodity contracts	172	121	91	(25)
	Option contracts	(482)	(2,318)	(593)	(2,141)
	Foreign exchange contracts	(3)	(3)	(5)	(5)
	Foreign exchange option contracts	(3)	(3)	7	7
	Interest rate swaps	45	45	32	32
	The fair value amounts include off balance sheet designated hedges, which are not carried on the balance sheet and excluded from the carrying amount. All other derivatives are carried at fair value. Derivative maturity profile
			2004
	Figures in million		Total	Assets	Liabilities
	SA Rands
	Total		(271)	3,226	(3,497)
	Less: Amounts to mature within 12 months of balance sheet date		309	(2,260)	2,569
	Amounts to mature thereafter		38	966	(928)
			2003
	Figures in million		Total	Assets	Liabilities
	SA Rands
	Total		(468)	2,678	(3,146)
	Less: Amounts to mature within 12 months of balance sheet date		81	(2,106)	2,187
	Amounts to mature thereafter		(387)	572	(959)

	The following methods and assumptions were used to estimate the fair value of each class of financial instrument:
	Trade and other receivables, cash and cash equivalents and trade and other payables
	The carrying amounts approximate fair value because of the short-term duration of these instruments.
	Investments and other non-current assets
	Listed investments are carried at market value while unlisted investments are carried at directors' valuation. Other non-current assets are carried at discounted value.
	Borrowings
	The fair value of listed fixed rate debt is shown at its market value. The remainder of debt re-prices on a short-term floating rate basis, and accordingly the carrying amount is considered to approximate fair value.
	Derivatives
	The fair values of derivatives are estimated based on the ruling market prices, volatilities and interest rates at 31 December 2004.
	The company uses the Black-Scholes option pricing formula to value option contracts. One of the inputs into the model is the level of volatility. These volatility levels are themselves not exchange traded and are not observable generally in the market. The company uses volatility input supplied by one of the leading market participants, an international merchant bank. The company believes that no other possible alternative would result in significantly different fair value estimations.
26	Discontinued operations
	The Ergo reclamation surface operation is to be discontinued during 2005. The operation forms part of South Africa under the segmental reporting analysis. Ergo has reached the end of its economic useful life. After a detailed investigation of several options and scenarios, management decided on 1 February 2005 that closure at the operation will commence on 31 March 2005. This is expected to be completed before the end of 2005. The remaining available tonnage will be treated and cleaned through the tailings facility. The tangible assets have been impaired and the liabilities are fully provided at R212m as detailed in the analysis below.
	The discontinued operations include the following:
	Figures in million	2004	2003
		SA Rands
	Revenue	560	547
	Operating and closure expenses	(627)	(570)
	Realised non-hedge derivatives	25	2
	Loss before taxation	(42)	(21)
	Taxation	-	-
	Loss after taxation	(42)	(21)
	Basic loss - cents per share	16	9
	Diluted loss - cents per share	16	9
	Net cash outflow from operating activities	42	21
	Net cash outflow from investing activities	-	-
	Net cash outflow from financing activities	-	-
	Assets
	Tangible assets - land	5	5
	Environmental Rehabilitation Trust Fund	131	119
	Gold inventory in process	5	7
		141	131
	Liabilities
	Environmental rehabilitation	138	104
	post-retirement medical liability	22	22
	Leave pay and bonus provisions	17	14
	Current liabilities	35	37
		212	177
	During 2005 and until the final date of closure, it is estimated that the operation will earn R108m in revenue, incur operational and closure costs of R266m and consequently report a loss from the operating and closure activities of R158m. This is equivalent to a basic loss of 60 SA cents per share.