2007 Annual Report
Non-GAAP disclosure (PDF – 64KB)

Non-GAAP disclosure

For the year ended 31 December

From time to time, AngloGold Ashanti Limited may publicly disclose certain 'Non-GAAP financial measures' in the course of its financial presentations, earnings releases, earnings conference calls and otherwise.

The group utilises certain Non-GAAP performance measures and ratios in managing the business and may provide users of this financial information with additional meaningful comparisons between current results and results in prior operating periods. Non-GAAP financial measures should be viewed in addition to, and not as an alternative to, the reported operating results or cash flow from operations or any other measure of performance prepared in accordance with IFRS. In addition, the presentation of these measures may not be comparable to similarly titled measures other companies use.

SA Rands US Dollars
20062007Figures in million20072006
  1.Headline earnings adjusted for the loss on unrealised non-hedge derivatives and other commodity contracts and fair value adjustment on convertible bond(1) (adjusted headline earnings)  
(850)(4,136) Headline loss (group note 14)(648)(82)
4,5077,114 Loss on unrealised non-hedge derivatives and other commodity contracts1,071615
   Deferred tax on unrealised non-hedge derivatives and other  
(742)(673) commodity contracts (group note 12)(98)(106)
(137)(333) Fair value adjustment on option component of convertible bond (47)(16)
2,7771,971 Headline earnings adjusted for the loss on unrealised non-hedge derivatives, other commodity contracts and fair value adjustment on convertible bond.278411
   
(1)Loss on unrealised non-hedge derivatives and other commodity contracts in the income statement comprises the change in fair value of all non-hedge derivatives and other commodity contracts as follows:
  • Open positions: The change in fair value from the previous reporting date or date of recognition (if later) through to the current reporting date; and
  • Settled positions: The change in fair value from the previous reporting date or date of recognition (if later) through to the date of settlement.
Headline earnings adjusted for the loss on unrealised non-hedge derivatives, other commodity contracts and fair value adjustment on convertible bond are intended to illustrate earnings after adjusting for:
  • The unrealised fair value change in contracts that are still open at the reporting date as well as the unwinding of the historic marked-to-market value of the positions settled in the period;
  • The unrealised fair value change on the option component of the convertible bond amounting to $47 million, R333 million (2006: $16 million, R137 million); and
  • The unrealised fair value change on the onerous uranium contracts.
  
1,018700 Cents per share99151
   This calculation is based on adjusted headline earnings of $278 million, R1,971 million (2006: $411 million, R2,777 million) and 281,455,107 (2006: 272,808,217) shares being the weighted average number of ordinary shares in issue during the financial year.  
      
  2.Gross profit adjusted for the loss on unrealised non-hedge derivatives and other commodity contracts (adjusted gross profit)  
   Reconciliation of gross (loss) profit to gross profit adjusted for the loss on unrealised non-hedge derivatives and other commodity contracts  
2,700(524) Gross (loss) profit(136)443
4,5077,114 Loss on unrealised non-hedge derivatives and other commodity contracts1,071615
7,2076,590 Gross profit adjusted for the loss on unrealised non-hedge derivatives and other commodity contracts (1)9351,058
   
(1)Gross profit adjusted for the loss on unrealised non-hedge derivatives and other commodity contracts is intended to illustrate earnings after adjusting for:
  • The unrealised fair value change in contracts that are still open at the reporting date as well as the unwinding of the historic marked-to-market value of the positions settled in the period; and
  • The unrealised fair value change on the onerous uranium contracts.
  
   Gross profit (loss) adjusted for the loss on unrealised non-hedge derivatives and other commodity contracts is analysed by origin as follows:  
3,7462,845 South Africa403549
245338 Argentina4837
934960 Australia137137
946987 Brazil141138
(186)25 Ghana3(26)
19101 Guinea144
986646 Mali92146
14890 Namibia1322
(19)52 Tanzania6(2)
167518 USA7423
22128 Other, including corporate and non-gold producing subsidiaries430
7,2076,590  9351,058
  3.Loss on non-hedge derivatives and other commodity contracts is summarised as follows:  
   Group:  
2,5522,033 Gain on realised non-hedge derivatives291376
(4,343)(7,305) Loss on unrealised non-hedge derivatives(1,099)(591)
(9)49 Unrealised gain (loss) on other commodity physical borrowings7(1)
(155)142 Provision reversed (raised) for loss on future deliveries and other commodities 21(23)
      
(1,955)(5,081) Loss on non-hedge derivatives and other commodity contracts per the income statement(780)(239)
      
   Company:  
1,112506 Gain on realised non-hedge derivatives74166
(1,938)(1,814) Loss on unrealised non-hedge derivatives(278)(265)
(9)23 Unrealised gain (loss) on other commodity physical borrowings3(1)
(101)80 Provision reversed (raised) for loss on future deliveries and other commodities13(15)
(936)(1,205) Loss on non-hedge derivatives and other commodity contracts per the income statement(188)(115)
      
  4.Price received  
20,13723,052 Gold income per income statement3,2802,964
(804)(889) Adjusted for minority interests(127)(119)
19,33322,163  3,1532,845
2,5522,033 Gain on realised non-hedge derivatives291376
21,88524,196  3,4443,221
173,639170,265 Attributable gold sold – kg and oz (000)5,4745,583
126,038142,107 Revenue price per unit – R/kg and $/oz629577
      
  5.Total costs  
11,83913,959 Total cash costs (group note 4)1,9881,746
(73)(246) Adjusted for minority interests and non-gold producing companies(34)(11)
      
11,76613,713 Total cash costs adjusted for minority interests and non-gold producing companies1,9541,735
152131 Retrenchment costs (group note 4)1922
(35)445 Rehabilitation and other non-cash costs (group note 4)65(3)
4,0594,143 Amortisation of tangible assets (group note 4)590597
1314 Amortisation of intangible assets (group note 4)22
(122)(146) Adjusted for minority interests and non-gold producing companies(21)(18)
15,83318,300 Total production costs adjusted for minority interests and non-gold producing companies2,6092,335
175,253170,365 Gold produced – kg and oz (000)5,4775,635
67,13380,490 Total cash cost per unit – R/kg and $/oz357308
90,345107,415 Total production cost per unit – R/kg and $/oz476414
      
  6.Cash gross profit  
   Gross profit adjusted for the loss on unrealised non-hedge  
7,2076,590 derivatives and other commodity contracts (note 2)9351,058
4,0594,143 Amortisation of tangible assets (group note 4)590597
1314 Amortisation of intangible assets (group note 4)22
(43)3 Non-cash revenues–(5)
11,23610,750  1,5271,652
   Cash gross profit is analysed by origin as follows:  
5,3664,628 South Africa657788
465513 Argentina7369
1,1791,308 Australia186173
1,1361,308 Brazil186165
396485 Ghana6860
282352 Guinea5042
1,274809 Mali115188
192131 Namibia1928
246358 Tanzania5037
432742 USA10662
268116 Other, including corporate and non-gold producing subsidiaries1740
11,23610,750  1,5271,652
      
  7.EBITDA  
1,349(2,636) Operating (loss) profit per the income statement(439)246
4,0594,143 Amortisation of tangible assets (group note 4)590597
1314 Amortisation of intangible assets (group note 4)22
–7 Impairment of goodwill (group notes 6, 14 and 17)1–
446 Impairment of tangible assets (group notes 6, 14 and 16)16
4,5077,114 Loss on unrealised non-hedge derivatives and other commodity contracts (note 3)1,071615
(2)(3) Share of associates’ EBITDA (group note 8)–(1)
(13)30 Discontinued operations (EBITDA component) (group note 13)5(2)
(333)(56) Profit on disposal of assets (group note 6)(7)(48)
(36)– Recovery of exploration loan previously expensed (group note 6)–(5)
(9)– Profit on disposal of shares in Nufcor Uranium Limited (group note 6)–(1)
9,5798,619  1,2241,409
      
  8.Interest cover  
9,5798,619 EBITDA (note 7)1,2241,409
822880 Finance costs (group note 7)125123
7168 Capitalised finance costs (group notes 7 and 16)1010
893948  135133
119 Interest cover – times911
      
  9.Equity and net capital employed  
20,89516,204 Shareholders’ equity per balance sheet2,3792,985
   Adjusted to exclude:  
1,5031,011 – Other comprehensive income (group note 28)148215
45108 – Actuarial losses (group note 28)166
22,44317,323  2,5433,206
7,7227,159 Deferred tax (group note 33)1,0511,103
   Adjusted to exclude:  
1,5812,246 – Deferred tax on derivatives and other comprehensive income330226
28(8) – Deferred tax on actuarial losses(1)4
31,77426,720 Equity3,9234,539
436429 Minorities (group note 29)6362
9,96310,441 Borrowings – long-term portion (group note 30)1,5331,423
4132,309 Borrowings – short-term portion (group note 30)33959
42,58639,899 Capital employed5,8586,083
(3,467)(3,381) Cash and cash equivalents (group note 25)(496)(495)
39,11936,518 Net capital employed5,3625,588
      
  10.Net debt  
9,96310,441 Borrowings – long-term portion (group note 30)1,5331,423
4132,309 Borrowings – short-term portion (group note 30)33959
10,37612,750 Total borrowings1,8721,482
(3,467)(3,381) Cash and cash equivalents (group note 25)(496)(495)
6,9099,369 Net debt1,376987
      
  11.Net asset value – cents per share  
21,33116,633 Total equity per balance sheet2,4423,047
280282 Number of ordinary shares in issue (millions) (note 27)282280
7,6075,907 Net asset value – cents per share8671,087
      
   Number of ordinary shares in issue consists of:  
   277,457,471 (2006: 276,236,153) ordinary shares (group note 27)  
   4,140,230 (2006: 4,185,770) E ordinary shares (group note 27)  
      
  12.Net tangible asset value – cents per share  
21,33116,633 Total equity per balance sheet2,4423,047
(2,909)(2,996) Intangible assets (group note 17)(440)(415)
18,42213,637  2,0022,632
280282 Number of ordinary shares in issue (millions) (note 27)282280
6,5694,843 Net tangible asset value – cents per share711939
      
  13.Return on equity  
2,7771,971 Headline earnings adjusted for the loss on unrealised non-hedge derivatives, other commodity contracts and fair value adjustment on convertible bond (note 1)278411
31,77426,720 Equity (note 9)3,9234,539
29,31529,247 Average equity4,2314,388
   Note – equity for 2005 amounted to $4,236 million,  
   R26,856 million  
97 Return on equity – %79
      
  14.Return on net capital employed  
2,7771,971 Headline earnings adjusted for the loss on unrealised non-hedge derivatives, other commodity contracts and fair value adjustment on convertible bond (note 1)278411
822880 Finance costs (group note 7)125123
3,5992,851 Headline earnings adjusted for the loss on unrealised non-hedge derivatives, other commodity contracts, fair value adjustment on convertible bond and finance costs403534
39,11936,518 Net capital employed (note 9)5,3625,588
38,51837,819 Average net capital employed5,4755,784
   Note – Net capital employed for 2005 amounted to $5,980 million, R37,917 million  
98 Return on net capital employed – %79
      
  15.Free cash flow  
7,8256,238 Net cash inflow from operating activities per cash flow8821,137
(3,416)(3,758) Stay-in-business capital expenditure per cash flow(535)(504)
4,4092,480  347633
      
  16.Market capitalisation  
276277 Number of listed ordinary shares in issue at year end (millions) (group note 27)277276
329.99293.00 Closing share price as quoted on the JSE and New York Stock 42.8147.09
91,15581,295 Market capitalisation11,87813,008
      
  17.Average number of employees  
   South Africa36,97635,968
   Argentina1,017906
   Australia781479
   Brazil4,3524,428
   Ghana7,5499,443
   Guinea2,9172,708
   Mali1,6151,473
   Namibia409313
   Tanzania3,2263,220
   USA405369
   Other, including corporate and non-gold producing subsidiaries2,2752,146
    61,52261,453
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AngloGold Ashanti Annual Report 2007 – Annual Financial Statements