2006 Annual Report

Summarised group financial results

For the year ended 31 December            
Dollar million   2006 2005 2004 2003 2002
Income statement            
Gold income   2,964 2,629 2,309 2,029 1,761
Cost of sales   (2,282) (2,309) (1,924) (1,526) (1,203)
(Loss) gain on non-hedge derivatives and other commodity contracts (1) (239) (135) (142) 119 92
Gross profit   443 185 243 622 650
Corporate administration and other expenses   (84) (64) (51) (36) (25)
Market development costs   (16) (13) (15) (19) (17)
Exploration costs   (61) (45) (44) (38) (28)
Amortisation of intangible assets   – – (31) (29) (28)
Other net operating expenses   (18) (20) (12) (14) (8)
Operating special items   (18) (77) 12 (8) (23)
Operating profit (loss)   246 (34) 102 478 521
Interest received   32 25 49 42 39
Exchange (loss) gain   (2) (5) 4 (3) (4)
Fair value adjustment on option component of convertible bond 16 (32) 27 – –
Finance costs and unwinding of decommissioning and restoration obligations (123) (108) (87) (53) (48)
Fair value (loss) gain on interest rate swaps   – (1) 2 6 –
Share of associates’ (loss) profit   (1) (3) – 2 4
Profit (loss) before taxation   168 (158) 97 472 512
Taxation   (180) 35 41 (142) (165)
(Loss) profit after taxation from continuing operations   (12) (123) 138 330 347
Discontinued operations            
Loss for the year from discontinued operations   (2) (36) (11) – –
(Loss) profit for the year   (14) (159) 127 330 347
Allocated as follows            
Equity shareholders of the parent   (44) (182) 108 312 332
Minority interest   30 23 19 18 15
    (14) (159) 127 330 347
Other financial data            
Adjusted gross profit (2) $m 1,058 470 441 559 638
Cash gross profit (3) $m 1,652 955 793 791 883
Headline (loss) earnings $m (80) (97) 141 318 376
Adjusted headline earnings (4) $m 413 201 271 282 368
Adjusted gross margin % 32 17 19 27 35
Cash gross margin % 49 34 34 38 48
EBITDA (5) $m 1,411 820 700 667 802
EBITDA margin % 42 29 30 32 44
Interest cover (6) times 11 7 7 13 17
(Loss) earnings per ordinary share (cents)            
   Basic US cents (16) (69) 43 140 150
   Diluted US cents (16) (69) 43 139 149
   Headline US cents (29) (37) 56 143 169
Adjusted headline earnings (4) US cents 151 76 108 127 166
Dividends declared per ordinary share US cents 62 36 56 101 146
Weighted average number of shares million 273 265 251 223 222
Issued shares at year-end million 280 265 264 223 223
(1) Refer to Non-GAAP disclosure note 3.
(2) Refer to Non-GAAP disclosure note 2.
(3) Refer to Non-GAAP disclosure note 6.
(4) Refer to Non-GAAP disclosure note 1.
(5) Refer to Non-GAAP disclosure note 7.
(6) Refer to Non-GAAP disclosure note 8.
Balance sheet            
Assets            
Tangible and intangible assets   6,469 6,307 6,323 3,176 2,654
Cash and cash equivalents   495 209 289 505 413
Other assets   1,979 1,777 1,590 1,176 897
Total assets   8,943 8,293 8,202 4,857 3,964
Equity and liabilities            
Shareholders equity and minority interests   3,047 2,662 3,209 1,681 1,483
Borrowings   1,482 1,894 1,605 1,158 926
Deferred taxation   1,103 1,154 1,356 598 402
Other liabilities   3,311 2,583 2,032 1,420 1,153
Total equity and liabilities   8,943 8,293 8,202 4,857 3,964
Other financial data            
Equity (1)   4,539 4,236 4,708 2,568 2,082
Net capital employed (1)   5,588 5,980 6,082 3,274 2,635
Net debt (2)   987 1,685 1,316 653 513
Net asset value – US cents per share (3)   1,087 1,005 1,214 754 665
Net tangible asset value – US cents per share (4)   939 854 1,049 569 497
Market capitalisation (5)   13,205 13,069 9,614 10,420 7,627
Financial ratios            
Return on equity (6) % 9 4 7 12 21
Return on net capital (7) % 9 5 8 11 17
Net debt to net capital employed % 18 28 22 20 19
Net debt to equity % 22 40 28 25 25
(1) Refer to Non-GAAP disclosure note 9.
(2) Refer to Non-GAAP disclosure note 10.
(3) Refer to Non-GAAP disclosure note 11.
(4) Refer to Non-GAAP disclosure note 12.
(5) Refer to Non-GAAP disclosure note 16.
(6) Refer to Non-GAAP disclosure note 13.
(7) Refer to Non-GAAP disclosure note 14.
Dollar million 2006 2005 2004(1) 2003 2002
Cash flow statement          
Cash flows from operating activities          
Cash generated from operations 1,281 673 570 562 744
Cash utilised by discontinued operations (1) (31) (2) – –
Taxation paid (143) (30) (34) (102) (131)
Net cash inflow from operating activities 1,137 612 534 460 613
Cash flows from investing activities          
Capital expenditure (817) (722) (585) (363) (271)
Net proceeds from disposal and acquisition of mines and subsidiaries 9 4 (171) 10 51
Net proceeds from disposal and acquisition of investments, associate          
loans and acquisitions and disposal of tangible assets 43 (18) (20) 61 117
Interest received 25 18 37 33 32
Net loans advanced (repaid) 5 (1) 83 (15) 12
Cash restricted for use (3) 17 (6) – –
Utilised in hedge restructure – (69) (123) – –
Net cash outflow from investing activities (738) (771) (785) (274) (59)
Cash flows from financing activities          
Net proceeds from share issues 507 9 3 10 7
Net borrowings (repaid) proceeds (397) 316 259 197 (114)
Finance costs (88) (74) (72) (40) (40)
Dividends paid (132) (169) (198) (314) (260)
Proceeds from hedge restructure – – 40 – –
Net cash (outflow) inflow from financing activities (110) 82 32 (147) (407)
Net increase (decrease) in cash and cash equivalents 289 (77) (219) 39 147
Translation (3) (3) 13 53 75
Opening cash and cash equivalents 209 289 495 413 191
Closing cash and cash equivalents 495 209 289 505 413
Other financial data          
Free cash flow (2) 633 160 205 311 518
(1) 2004 comparatives re-stated to comply with current year disclosures.
(2) Refer to Non-GAAP disclosure note 15.
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AngloGold Ashanti Annual Report 2006 - Annual Financial Statements