Company – Notes to the company financial statements

For the year ended 31 December

Figures in million

2010

2009

SA Rands

1 Revenue

Revenue consists of the following principal categories:

Gold income

15,827

12,461

By-products (note 2)

355

363

Dividends received from subsidiaries – in specie (notes 11 and 27)

17,693

–

Dividends received from subsidiaries – in cash (note 27)

611

543

Royalties received (note 4)

–

Interest received (note 27)

– loans and receivables

– cash and cash equivalents

153

34,634

13,525

2 Cost of sales

Cash operating costs ⁽¹⁾

7,934

7,222

Insurance reimbursement

(123)

–

By-product revenue (note 1)

(355)

(363)

7,456

6,859

Other cash costs

322

Total cash costs

7,778

6,899

Retrenchment costs (note 7)

138

Rehabilitation and other non-cash costs

182

(3)

Production costs

8,098

6,973

Amortisation of tangible assets (notes 6, 9 and 27)

2,450

2,217

Total production costs

10,548

9,190

Inventory change

(29)

10,579

9,161

⁽¹⁾	Cash operating costs comprises:	3,969	3,832
	– salaries and wages	1,789	1,876
	– stores and other consumables	1,262	970
	– fuel, power and water	85	107
	– contractors	829	437
	– services and other charges	7,934	7,222

3 Other operating expenses

Pension and medical defined benefit provisions

4 Special items

Impairment of tangible assets (notes 9 and 19)

501

200

Loss on disposal and derecognition of land, mineral rights and tangible assets

196

113

Impairment of other receivables

Indirect tax expenses

–

Insurance claim recovery

(134)

(79)

Royalties received (note 1)

(21)

–

Profit on disposal of investment

(1)

–

Loan waived

–

592

303

5 Finance costs and unwinding of obligations

Finance costs

Finance lease charges

Finance costs on bank loans and overdrafts ⁽¹⁾

–

Other

–

Unwinding of obligations

Unwinding of decommissioning obligation (note 22)

Unwinding of restoration obligation (note 22)

Total unwinding of obligation costs

Total finance costs and unwinding of obligations (note 27)

107

⁽¹⁾	Finance costs have been determined using the effective interest rate method.

6 Profit (loss) before taxation

Profit (loss) before taxation is arrived at after taking account of:

Auditors’ remuneration

– audit fees

– over provision prior year

(1)

(3)

– other assurance services

Amortisation of tangible assets

– owned assets

2,433

2,200

– leased assets

(notes 2, 9 and 27)

2,450

2,217

Community investment

Operating lease charges

139

7	Employee benefits
	Employee benefits including executive directors’ salaries and other benefits		5,049	4,785
	Health care and medical scheme costs
	–	current medical expenses	447	362
	–	defined benefit post-retirement medical expenses	103	79
	Pension and provident plan costs
	–	defined contribution	326	307
	–	defined benefit pension plan	20	23
	Retrenchment costs (note 2)		138	77
	Share-based payment expense ⁽¹⁾		316	256
	Included in cost of sales, other operating expenses, special items and corporate administration, marketing and other expenses		6,399	5,889
	Actuarial defined benefit plan expense analysis
	Defined benefit post-retirement medical
	–	current service cost	6	4
	–	interest cost	97	75
			103	79
	Defined benefit pension plan
	–	current service cost	50	51
	–	interest cost	179	137
	–	expected return on plan assets	(209)	(165)
			20	23
	Actual return on plan assets
	–	South Africa defined benefit pension plan	290	264

	Refer to the Remuneration report for details of directors’ emoluments.
	⁽¹⁾	Details of the equity-settled share-based payment arrangements of the group have been disclosed in group note 11. These arrangements consist of awards by the company to employees of various group companies. The income statement expense of R316m (2009: R256m) for the company is only in respect of awards made to employees of the company.
8	Taxation
	Current taxation
		Mining tax ⁽¹⁾	–	153
		Non-mining tax ⁽²⁾	43	33
		(Over) under provision prior year	(629)	32
	(note 26)		(586)	218
	Deferred taxation
		Temporary differences ⁽³⁾	(1,384)	534
		Unrealised non-hedge derivatives and other commodity contracts	2,353	(1,451)
		Change in estimated deferred tax rate ⁽⁴⁾	(39)	(156)
	(note 24)		930	(1,073)

			344	(855)

Tax reconciliation

A reconciliation of the effective tax rate charged in the income statement to the prevailing mining and non-mining tax rate is set out in the following table:

Effective tax rate

Disallowable items

(4)

(4)

Exchange variation and translation adjustments

–

(6)

Impairment of investment in subsidiaries

(73)

–

Dividends received

(15)

Prior year’s provision

Change in estimated deferred tax rate ⁽⁴⁾

(12)

Other

(1)

Estimated corporate tax rate ⁽⁵⁾

⁽¹⁾	There was no mining tax charge in the current year as it was primarily offset by losses from the accelerated non-hedge derivative buy-backs.
⁽²⁾	Non-mining income is taxed at the higher non-mining tax rate of 35% (2009: 35%) as the company has elected to be exempt from STC. Companies that elected to be subject to STC are taxed at the lower company tax rate, that of 28% (2009: 28%) for non-mining taxation purposes.
⁽³⁾	Included in temporary differences is a tax credit on the derecognition of tangible assets and impairments in respect of held for sale assets of R193m (2009: R61m).
⁽⁴⁾	The mining operations are taxed on a variable rate that increases as profitability increases. The tax rate used to calculate deferred tax is based on the company’s current estimate of future profitability when temporary differences will reverse. Depending on the profitability of the operations, the tax rate can consequently be significantly different from year to year. The change in the estimated deferred tax rate at which the temporary differences will reverse amounts to a tax credit of R39m (2009: tax credit of R156m).
⁽⁵⁾	Mining tax on mining income is determined according to a formula based on profit and revenue from mining operations. The company has elected to be exempt from STC and is taxed at a higher rate of company tax for mining and non-mining income tax purposes.

All mining capital expenditure is deducted to the extent that it does not result in an assessed loss and depreciation is ignored when calculating the mining income. Capital expenditure not deducted from mining income is carried forward as unredeemed capital to be deducted from future mining income. The company operates under two tax paying operations, Vaal River Operation and West Wits Operation. Under ring-fencing legislation, each operation is treated separately and deductions can only be utilised against income generated by the relevant tax operation.

The formula for determining the mining tax rate is: Y = 43 – 215/X (2009: Y = 43 – 215/X) where Y is the percentage rate of tax payable and X is the ratio of mining profit net of any redeemable capital expenditure to mining revenue expressed as a percentage.

The maximum statutory mining tax rate is 43% (2009: 43%), non-mining statutory tax rate 35% (2009: 35%) and statutory company tax rate 28% (2009: 28%).

Figures in million

Mine
development
costs

Mine infra-
structure

Mineral
rights
and dumps

Assets
under
construction

Land and
buildings

Total

SA Rands

9 Tangible assets

Cost

Balance at 1 January 2009

20,674

3,915

701

813

265

26,368

Additions

–

project capital

294

–

270

–

566

–

stay-in-business capital

2,453

216

–

2,669

Transfers and other movements ⁽¹⁾

(2,018)

(143)

(156)

–

(2,317)

Balance at 31 December 2009

21,403

3,990

545

1,083

265

27,286

Accumulated amortisation

Balance at 1 January 2009

10,042

2,009

275

–

12,355

Amortisation for the year

(notes 2, 6 and 27)

2,037

141

–

2,217

Transfers and other movements ⁽¹⁾

(1,334)

(35)

(56)

–

(1)

(1,426)

Balance at 31 December 2009

10,745

2,115

241

–

13,146

Net book value at 31 December 2009

10,658

1,875

304

1,083

220

14,140

Cost

Balance at 1 January 2010

21,403

3,990

545

1,083

265

27,286

Additions

–

project capital

340

(18)

–

409

–

stay-in-business capital

2,389

305

–

2,694

Transfers and other movements ⁽¹⁾

(214)

–

(166)

Balance at 31 December 2010

23,918

4,325

545

1,170

265

30,223

Accumulated amortisation

Balance at 1 January 2010

10,745

2,115

241

–

13,146

Amortisation for the year (notes 2, 6 and 27)

2,221

186

–

2,450

Impairment (note 4) ⁽²⁾

117

(3)

–

329

–

443

Transfers and other movements ⁽¹⁾

(57)

(59)

–

(116)

Balance at 31 December 2010

13,026

2,239

267

329

15,923

Net book value at 31 December 2010

10,892

2,086

278

841

203

14,300

Included in land and buildings are assets held under finance leases with a net book value of R185m (2009: R201m).

The majority of the leased assets are pledged as security for the related finance lease

No assets are encumbered by project finance.

A register containing details of properties is available for inspection by shareholders or their duly authorised agents during business hours at the registered office of the company.

⁽¹⁾	Transfers and other movements comprise amounts from changes in estimates of decommissioning assets, asset reclassifications and transfers to/from non-current assets held for sale.

	In 2010, transfers to non-current assets held for sale comprised:
	assets with a net book value of R74m relating to Tau Lekoa which were transferred to non-current assets held for sale.
	In 2009, transfers to non-current assets held for sale comprised:
	assets with a net book value of R704m relating to Tau Lekoa which were transferred to non-current assets held for sale.
⁽²⁾	Impairments include the following:

Below 120 level at TauTona – assets under construction
Due to a change in the mine plan resulting from safety-related concerns following seismic activity, the below 120 level development has been abandoned and will not generate future cash flows. An impairment loss of R329m (2009: nil) was recognised in the income statement.

Savuka – mine development and mine infrastructure costs
Due to a change in the mine plan, the Savuka assets have been abandoned and will not generate future cash flows. An impairment loss of R114m (2009: nil) was recognised in the income statement.

The impairment calculation methodology is included in group note 15.

Figures in million

2010

2009

SA Rands

10 Investments in associates and joint venture

The carrying value of investments in associates and joint venture can be

analysed as follows:

Carrying value of investments in associates

Loans advanced to associates ⁽¹⁾

Loan advanced to joint venture ⁽²⁾

In 2010 and 2009, the Margaret Water Company investment was impaired. The impairment tests considered the investment’s fair value and anticipated future cash flows. Impairments of R6m (2009: R4m) were recognised in the income statement.

⁽¹⁾	Loans advanced to associates consist of R12m (2009: R12m) to Oro Group (Pty) Limited and R5m (2009: R5m) to Orpheo (Pty) Limited. The Oro Group (Pty) Limited loan bears interest at a rate determined by the Oro Group (Pty) Limited’s board of directors and is repayable at its discretion. The Orpheo (Pty) Limited loan is unsecured, interest free and there are no fixed terms of repayment
⁽²⁾	The loan advanced to AuruMar (Pty) Limited is interest free and there are no fixed terms of repayment.

Investments in associates comprises:

Name

Effective %

Description

2010

2009

Oro Group (Pty) Limited ⁽³⁾

Manufacture and wholesale of jewellery.

Margaret Water Company

33.3

33.3

Pumping of underground water in the Vaal River Region.

Orpheo (Pty) Limited ⁽³⁾

33.3

Design, manufacture and wholesale of jewellery.

Wonder Wise Holdings Limited

–

Marketing and wholesale of jewellery.

⁽³⁾	Equity accounting is based on results to 30 September 2010, adjusted for material transactions.

Investment in joint venture comprises:

	Name	Effective %		Description
		2010	2009
	AuruMar (Pty) Limited	50	50	Global exploration of marine deposits containing gold as the primary mineral.

Figures in million

2010

2009

SA Rands

11 Investment in subsidiaries

Shares at cost:

Advanced Mining Software Limited

AGA Zerps Holding Limited

5,028

–

AGRe Insurance Company Limited

AngloGold Ashanti Americas Investments Limited

–

849

AngloGold Ashanti Holdings plc

32,341

27,677

AngloGold Ashanti USA Incorporated

2,722

2,722

AngloGold Namibia (Pty) Limited

AngloGold Offshore Investments Limited

–

327

Eastvaal Gold Holdings Limited

917

917

Gansu Jinchanggou Mining Company Limited

Nuclear Fuels Corporation of SA (Pty) Limited

Rand Refinery Limited

116

116

41,213

32,697

During November 2010, a number of the dormant subsidiaries of the group unbundled their underlying assets as part of a rationalisation process to consolidate cross shareholdings, simplify the corporate structure and eliminate unnecessary costs relating to these entities.

As a result of the rationalisation, the company received dividends in specie of R17,693m (note 1). The accounting standards do not allow the offset of the dividends in specie against the carrying values of the investments in subsidiaries and accordingly the carrying values were subject to impairment testing. Impairments following the restructuring of R13,788m were recorded.

12 Other investments

Listed investment

Available-for-sale

Balance at beginning of year

–

Additions

–

Fair value adjustments

(1)

–

Balance at end of year

–

Market value of listed investment

–

The available-for-sale investment consists of ordinary shares in Simmer & Jack Mines

Limited received as consideration for the sale of Tau Lekoa mine.

The company's listed available-for-sale equity investment is susceptible to market price risk arising from uncertainties about the future value of the investment.

Unlisted investments

Available-for-sale

Balance at beginning of year

Disposals

(1)

–

Balance at end of year ⁽¹⁾

The available-for-sale investments consist primarily of the Chamber of Mines Building Company Limited.

Held-to-maturity

Balance at beginning of year

Balance at end of year

Book value of unlisted investments

The investment held-to-maturity consists of the Gold of Africa Museum.

Total other investments (note 30)

⁽¹⁾	There is no active market for the unlisted equity investments and fair value cannot be reliably measured. The unlisted equity investments are carried at cost. The company does not intend to sell the investments in the foreseeable future.

13 Inventories

Work in progress

– metals in process

288

253

Finished goods

– gold doré/bullion

– by-products

267

233

Total metal inventories

556

519

Mine operating supplies

115

155

Total inventories ⁽¹⁾

671

674

⁽¹⁾	The amount of the write-down of metals in process, by-products and mine operating supplies to net realisable value, and recognised as an expense is R6m (2009: R1m). This expense is included in cost of sales which is disclosed in note 2.

14 Investment in Environmental Rehabilitation Trust Fund

Balance at beginning of year

294

294

Balance at end of year

294

294

The fund is managed by Rand Merchant Bank and invested mainly in equities, government long bonds and other fixed-term deposits.

15 Intra-group balances

Advanced Mining Software Limited

(9)

(10)

AngloGold Ashanti Americas Investments Limited

–

(52)

AngloGold Ashanti Australia Limited

AngloGold Ashanti Colombia SA

–

AngloGold Ashanti Córrego do Sitío Mineração S.A.

AngloGold Ashanti (Ghana) Limited

AngloGold Ashanti Health (Pty) Limited

(3)

AngloGold Ashanti Holdings plc

(505)

(556)

AngloGold Ashanti (Iduapriem) Limited

AngloGold Ashanti North America Inc

AngloGold Ashanti Senegal Investments Limited

–

AngloGold Namibia (Pty) Limited

AngloGold Offshore Investments Limited

–

(5)

AngloGold South America Limited

(192)

(202)

Ashanti Goldfields Kilo Scarl

Cerro Vanguardia S.A.

Eastvaal Gold Holdings Limited

(604)

(604)

Geita Gold Mining Limited

Mineração Serra Grande S.A.

Nuclear Fuels Corporation of SA (Pty) Limited

121

Société Ashanti Goldfields de Guinée S.A.

(903)

(1,061)

Included in the statement of financial position as follows:

Non-current assets

413

387

Non-current liabilities

(1,316)

(1,448)

(903)

(1,061)

During 2009 a loan to a joint venture of R4m was reclassified to trade and other receivables (note 17).

16 Other non-current assets

AngloGold Ashanti Limited Pension Fund (note 23)

Loans and receivables

Loan receivable at 31 December 2011 bearing interest at 3% per annum

Other non-interest bearing loans and receivables – receivable on various dates

–

Current portion of other non-current assets included in current assets

(4)

(1)

17 Trade and other receivables

Non-current

Other receivables ⁽¹⁾

230

136

Amounts due from related parties (note 15)

–

230

140

Current

Trade receivables

Prepayments and accrued income

Recoverable tax, rebates, levies and duties

326

111

Amounts due from related parties

Interest receivable

Other receivables

527

288

Total trade and other receivables

757

428

Current trade receivables are non-interest bearing and are generally on terms less than 90 days.

During the year, trade receivables were impaired by R44m (2009: R67m).

⁽¹⁾	The amounts receivable have been discounted to their present value at a rate of 9.25% (2009: 9.25%).

18 Cash and cash equivalents

Cash and deposits on call

851

715

Money market instruments

149

1,005

(note 30)

1,000

1,720

19 Non-current assets and liabilities held for sale

Effective 17 February 2009, the interest in the Tau Lekoa mine together with the adjacent Weltevreden, Jonkerskraal and Goedgenoeg project areas in South Africa were classified as held for sale. Tau Lekoa was previously recognised as a combination of tangible and current assets, current and long-term liabilities.

The purchase consideration consists of two components: an initial cash payment or combination of cash payments and Simmer & Jack Mines Limited (Simmers) shares together with future royalty payments.

The Department of Mineral Resources has transferred the mining rights for its Tau Lekoa mine to Buffelsfontein Gold Mines Limited, a wholly owned subsidiary of Simmers. Full ownership of Tau Lekoa and the adjacent properties of Weltevreden, Jonkerskraal and Goedgenoeg passed to Simmers on 1 August 2010.

Following the classification of Tau Lekoa as held for sale, an impairment loss of R58m (2009: R200m) was recognised to reduce the carrying amount of the disposal group to the fair value less costs to sell (note 4).

–

529

Effective 3 November 2010, ISS International Limited (ISSI) was classified as held for sale. AngloGold Ashanti Limited entered into a memorandum of understanding with The Institute of Mine Seismology (IMS) relating to the disposal of ISSI. The transaction was completed on 28 February 2011.

–

529

Non-current liabilities held for sale relating to Tau Lekoa mine

–

20 Share capital and premium

Share capital

Authorised

600,000,000 ordinary shares of 25 SA cents each

150

150

4,280,000 E ordinary shares of 25 SA cents each

2,000,000 A redeemable preference shares of 50 SA cents each

5,000,000 B redeemable preference shares of 1 SA cent each

–

152

152

Issued and fully paid

381,204,080 (2009: 362,240,669) ordinary shares of 25 SA cents each ⁽¹⁾

2,806,126 (2009: 3,794,998) E ordinary shares of 25 SA cents each

2,000,000 (2009: 2,000,000) A redeemable preference shares of 50 SA cents each

778,896 (2009: 778,896) B redeemable preference shares of 1 SA cent each

–

Share premium

Balance at beginning of year

40,572

38,158

Ordinary shares issued ⁽¹⁾

5,766

2,436

E ordinary shares cancelled

(90)

(22)

Balance at end of year

46,248

40,572

Share capital and premium

46,345

40,664

⁽¹⁾	The most significant movement was the equity offering which resulted in the issue of 18,140,000 (2009: 7,624,162) ordinary shares at an issue price of R308.37 (2009: R288.32) per share. Total proceeds of R5.6bn (2009: R2.2bn) were received.

The rights and restrictions applicable to the A and B redeemable preference shares:

A redeemable preference shares are entitled to:

an annual dividend, after payment in full of the annual dividend on the B preference shares, equivalent to the balance of after tax profits from mining the Moab Mining Right Area; and
on redemption, the nominal value of the shares and a premium per share equal to the balance of the net proceeds from disposal of assets relating to the Moab Mining Right Area, after redemption in full of the B preference shares payments of the nominal value of the A preference shares.

B redeemable preference shares are entitled to:

an annual dividend limited to a maximum of 5% of their issue price from the period that profits are generated from the Moab Mining Right Area; and
on redemption, the nominal value of the shares and a premium of up to R249.99 per share provided by the net proceeds from disposal of the assets relating to the Moab Mining Right Area.

The Moab Mining Right Area consists of the Moab Khotsong mine operations.

The B preference shares will only be redeemable from any net proceeds remaining after the disposal of the Moab Mining Right Area following permanent cessation of mining activities. The maximum redemption price will be R250 per share.

In the event of any surplus remaining after the redemption in full of the B preference shares, the A preference shares will be redeemable at such value as would cover the outstanding surplus.

21 Borrowings

Unsecured

FirstRand Bank Limited loan facility (R1.5bn)

701

–

Interest charged at JIBAR plus 0.95% per annum. Loan is repayable in May 2011 and is SA rand-based, the loan is subject to debt covenant arrangements for which no default event occurred.

Secured

Finance leases

Turbine Square Two (Pty) Limited

259

258

The leases are capitalised at an implied interest rate of 9.8% per annum. Lease payments are due in monthly instalments terminating in March 2022 and are SA rand-based. The buildings financed are used as security for these loans.

Total borrowings (note 30)

960

258

Current portion of borrowings included in current liabilities

(703)

(2)

Total long-term borrowings

257

256

Amounts falling due

Within one year

703

Between two and five years

After five years

233

241

(note 30)

960

258

Undrawn facility

Undrawn borrowing facility as at 31 December is as follows:

FirstRand Bank Limited – SA rand

800

–

22 Environmental rehabilitation provisions

Provision for decommissioning

Balance at beginning of year

383

457

Change in estimates ⁽¹⁾

192

(86)

Transfer to assets held for sale

(1)

(21)

Unwinding of decommissioning obligation (note 5)

Balance at end of year

610

383

Provision for restoration

Balance at beginning of year

386

440

Charge to income statement

130

Change in estimates ⁽¹⁾

(61)

Transfer to assets held for sale

(1)

(13)

Unwinding of restoration obligation (note 5) ⁽²⁾

Utilised during the year

(14)

(15)

Balance at end of year

595

386

Total environmental rehabilitation provisions

1,205

769

⁽¹⁾	The change in estimates relates to changes in laws and regulations governing the protection of the environment and factors relating to rehabilitation estimates and a change in the quantities of material in reserves and a corresponding change in the life of mine plan. These provisions are expected to unwind beyond the end of the life of mine.
⁽²⁾	Included in unwinding of restoration obligation is R13m (2009: nil) which is recoverable from a third party. The asset is included in non-current debtors.

23 Provision for pension and post-retirement benefits

Defined benefit plans

The company has made provision for pension, provident and medical schemes covering substantially all employees. The retirement schemes consist of the following:

AngloGold Ashanti Limited Pension Fund asset (group note 28)

(1)

(38)

Post-retirement medical scheme for AngloGold Ashanti Limited South African employees (group note 28)

1,161

1,095

1,160

1,057

Transferred to other non-current assets (note 16):

– AngloGold Ashanti Limited Pension Fund

1,161

1,095

24 Deferred taxation

Deferred taxation relating to temporary differences is made up as follows:

Liabilities

Tangible assets

4,947

5,044

Inventories

–

Other

4,952

5,096

Assets

Provisions

963

738

Derivatives

–

2,451

Tax losses

1,113

Other

2,131

3,278

Net deferred taxation liability

2,821

1,818

The movement on the deferred tax balance is as follows:

Balance at beginning of year

1,818

2,624

Income statement movement (note 8)

930

(1,073)

Taxation on items included in other comprehensive income

248

Taxation on cost of ESOP Share Trust establishment

Balance at end of year

2,821

1,818

25 Trade and other payables

Trade payables

636

630

Accruals

3,333

1,107

3,969

1,737

Trade and other payables are non-interest bearing and are normally settled within 60 days.

26 Taxation

Balance at beginning of year

699

629

Payments during the year

(277)

(148)

Provision during the year (note 8)

(586)

218

Balance at end of year

(164)

699

Taxation asset included in trade and other receivables (note 17).

164

–

27 Cash generated from operations

Profit (loss) before taxation

6,619

(1,277)

Adjusted for:

Movement on non-hedge derivatives and other commodity contracts

527

4,146

Amortisation of tangible assets (notes 2, 6 and 9)

2,450

2,217

Finance costs and unwinding of obligations (note 5)

107

Environmental, rehabilitation and other expenditure

101

(85)

Special items

749

385

Impairment of investment in subsidiaries (note 11)

13,788

–

Impairment of investment in Margaret Water Company (note 10)

Interest received (note 1)

(127)

(158)

Dividends received from subsidiaries (note 1)

(18,304)

(543)

Foreign currency translation on intergroup loans

(93)

(221)

Other non-cash movements

123

Movements in working capital

(59)

5,790

4,699

Movements in working capital:

Decrease (increase) in inventories

(30)

(Increase) decrease in trade and other receivables

(357)

Increase in trade and other payables

293

(59)

28 Related parties

Material related party transactions were as follows:

Sales and services rendered to related parties

Joint ventures

137

155

Associates

(5)

(1)

Subsidiaries

369

397

Purchases and services acquired from related parties

Associates

Subsidiaries

361

290

Outstanding balances arising from sale of goods and services and other loans due by related parties

Joint ventures

Associates

Subsidiaries

707

681

Outstanding balances arising from purchases of goods and services and other loans owed to related parties

Subsidiaries

1,316

1,448

Amounts owed to/due by related parties are unsecured and non-interest bearing. Terms relating to associate and joint venture related parties are detailed in note 10.

Management fees, royalties, interest and net dividends from subsidiaries amounts to R17,794m (2009: R40m). Dividends of R17,693m were received in specie and R611m were received in cash (2009: in cash R1m).

The company has refining arrangements with various refineries around the world including Rand Refinery Limited (Rand Refinery) in which it holds a 53% interest. Rand Refinery refines all of the group’s South African gold production and some of the group’s African (excluding South Africa) gold production. Rand Refinery charges AngloGold Ashanti Limited a refining fee.

The company did not receive any claims from its insurance subsidiary, AGRe Insurance Company Limited (2009: R68m).

Doubtful debts expensed during the year amounted to R11m (2009: R13m).

Details of guarantees to related parties are included in note 29.

Shareholders
The top 20 shareholders of the company are detailed under shareholder information.

Refer to Principal subsidiaries and operating entities for the list of principal subsidiaries and operating entities.

Directors and other key management personnel

Details relating to directors’ emoluments and shareholdings in the company are

disclosed in the Remuneration and Directors’ reports.

Compensation to key management personnel included the following:

– short-term employee benefits

– post-employment benefits

– share-based payments

118

128

29 Contractual commitments and contingencies

Operating leases

At 31 December 2010, the company was committed to making the following payments in respect of operating leases for amongst others, the hire of plant and equipment and land and buildings. Certain contracts contain renewal options and escalation clauses for various periods of time.

Expiry:

– within one year

– between one and two years

–

Finance leases

The company has finance leases for buildings and motor vehicles. The building leases have terms of renewal but no purchase options and escalation clauses. The motor vehicle leases have no purchase option and have escalation clauses. Renewals are at the option of the lessee. Future minimum lease payments under finance lease contracts together with the present value of the net minimum lease payments are as follows:

Figures in million	Minimum payments	Present value of payments	Minimum payments	Present value of payments
SA Rands	2010		2009
Within one year	25	–	25	–
After one year but not more than five years	127	31	117	18
More than five years	314	228	349	240
Total minimum lease payments	466	259	491	258
Amounts representing finance charges	(207)	–	(233)	–
Present value of minimum lease payments	259	259	258	258

Figures in million	2010	2009
	SA Rands
Capital commitments
Acquisition of tangible assets
Contracted for	177	506
Not contracted for	2,554	4,676
Authorised by the directors	2,731	5,182
Allocated to:
Project capital
– within one year	632	244
– thereafter	608	1,082
	1,240	1,326
Stay-in-business capital
– within one year	1,491	3,284
– thereafter	–	572
	1,491	3,856
Purchase obligations
Contracted for
– within one year	244	95
– thereafter	45	–
	289	95

Purchase obligations represent contractual obligations for the purchase of mining contract services, supplies, consumables, inventories, explosives and activated carbon.

To service these capital commitments, purchase obligations and other operational requirements, the company 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, 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 finance arrangements contain financial covenants and other similar undertakings. To the extent that external borrowings are required, the company’s covenant performance indicates that existing financing facilities will be available to meet the commitments detailed above. To the extent that any of the financing facilities mature in the near future, the company believes that sufficient measures are in place to ensure that these facilities can be refinanced.

Summary of contracted uranium sales as at 31 December 2010 Refer to group note 34 for a summary of contracted uranium sales.

Figures in million

Guarantees
and
contin-
gencies

Liabilities
included
in the
statement
of financial
position

Guarantees
and
contin-
gencies

Liabilities
included
in the
statement
of financial
position

SA Rands

2010

2009

Contingent liabilities

Groundwater pollution – South Africa ⁽¹⁾

–

Deep groundwater pollution – South Africa ⁽²⁾

–

ODMWA litigation ⁽³⁾

–

Contingent asset

Royalty – Tau Lekoa Gold Mine ⁽⁴⁾

–

Guarantees

Financial guarantees

Convertible bonds ⁽⁵⁾

4,813

309

5,446

400

Syndicated loan facility ⁽⁶⁾

6,570

363

8,550

Term facility ⁽⁷⁾

–

1,859

Rated bonds ⁽⁸⁾

6,570

1,704

–

Mandatory convertible bonds ⁽⁹⁾

5,184

227

–

Oro Group (Pty) Limited ⁽¹⁰⁾

100

–

100

–

Hedging guarantees

Ashanti Treasury Services ^{(11) (14)}

–

3,293

–

Geita Management Company ^{(12) (14)}

–

3,213

–

AngloGold South America ^{(13) (14)}

–

1,071

–

AngloGold USA Trading Company ^{(13) (14)}

–

1,679

–

Cerro Vanguardia S.A. ^{(13) (14)}

–

23,237

2,603

25,211

454

Contingent liabilities

⁽¹⁾	The company has identified groundwater contamination plumes at its Vaal River and West Wits operations in South Africa, which have occurred primarily as a result of seepage from mine residue stockpiles. Numerous scientific, technical and legal studies have been undertaken 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.
⁽²⁾	The company 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 Limited since 1999. Due to the interconnected nature of mining operations, any proposed solution needs to be a combined one supported by all the mines located in these gold fields. As a result, the Department of Mineral Resources and affected mining companies are involved in the development of a “Regional Mine Closure Strategy”. In view of the limitation of current information for the accurate estimation of a liability, no reliable estimate can be made for the obligation.

	Contingent asset
⁽³⁾	The case of Mr Thembekile Mankayi was heard in the High Court of South Africa in June 2008, and an appeal heard in the Supreme Court of Appeals in 2010. In both instances judgement was awarded in favour of AngloGold Ashanti Limited. A further appeal that was lodged by Mr Mankayi was heard in the Constitutional Court in 2010. Judgement in the Constitutional Court was handed down on 3 March 2011.

	Following the judgement, Mr Mankayi’s executor may proceed with his case in the High Court. This will comprise, amongst others, providing evidence showing that Mr Mankayi contracted silicosis as a result of negligent conduct on the part of AngloGold Ashanti.

	The company is still studying the details of the Constitutional Court judgement and will defend the case and any subsequent claims on their merits. Should other individuals or groups lodge similar claims, these too would be defended by the company and adjudicated by the Courts on their merits. In view of the limitation of current information for the accurate estimation of a possible liability, no reliable estimate can be made for this possible obligation.

⁽⁴⁾	As a result of the sale of the interest in the Tau Lekoa Gold Mine during 2010, the company is entitled to receive a royalty on the production of a total 1.5Moz by the Tau Lekoa Gold Mine and in the event that the average monthly rand price of gold exceeds R180,000/kg (subject to inflation adjustment). Where the average monthly rand price of gold does not exceed R180,000/kg (subject to inflation adjustment), the ounces produced in that quarter do not count towards the total 1.5Moz upon which the royalty is payable. The royalty will be determined at 3% of the net revenue (being gross revenue less state royalties) generated by the Tau Lekoa assets. Royalties of R21m were received during the year.

	Guarantees
⁽⁵⁾	The company has guaranteed all payments and other obligations of AngloGold Ashanti Holdings Finance plc regarding the convertible bonds amounting to R5,446m issued during 2009, with a maturity date of 22 May 2014 and a fixed coupon of 3.5% payable semi-annually. The company's obligations regarding the guarantees will be direct, unconditional and unsubordinated.
⁽⁶⁾	The company, together with AngloGold Ashanti Holdings plc and AngloGold Ashanti USA Incorporated, has provided guarantees for all payments and other obligations of the borrowers and the other guarantors under the $1bn four-year syndicated loan facility. The company also guaranteed all payments and other obligations of the wholly owned subsidiaries AngloGold Ashanti Holdings plc, AngloGold Ashanti Australia Limited and AngloGold Ashanti USA Incorporated regarding the $1,150m syndicated loan facility which was repaid and cancelled during April 2010.
⁽⁷⁾	The company has guaranteed all payments and other obligations of the wholly owned subsidiary AngloGold Ashanti Holdings plc regarding the $250m term facility which was repaid and cancelled during April 2010.
⁽⁸⁾	The company has fully and unconditionally guaranteed all payments and other obligations of AngloGold Ashanti Holdings plc regarding the issued $700m 5.375% rated bonds due 15 April 2020 and the issued $300m 6.5% rated bonds due 15 April 2040.
⁽⁹⁾	The company has fully and unconditionally guaranteed on a subordinated basis all payments and other obligations of AngloGold Ashanti Holdings Finance plc regarding the $789m 6% mandatory convertible bonds issued during 2010, with a maturity date of 15 September 2013.
⁽¹⁰⁾	The company has provided sureties in favour of a lender on a gold loan facility with its affiliate Oro Group (Pty) Limited and one of its subsidiaries to a maximum value of R100m (2009: R100m). The suretyship agreements have a termination notice period of 90 days.
⁽¹¹⁾	The company, together with its wholly owned subsidiary, AngloGold Ashanti Holdings plc, has provided guarantees to several counterparty banks for the hedging commitment of its wholly owned subsidiary Ashanti Treasury Services Limited (ATS).
⁽¹²⁾	The company together with its wholly owned subsidiary, AngloGold Ashanti Holdings plc have issued hedging guarantees to several counterparty banks in which they have guaranteed the due performance by the Geita Management Company Limited (GMC) of its obligations under or pursuant to the hedging arrangements entered into by GMC, and to the payment of all money owing or incurred by GMC as and when due.
⁽¹³⁾	The company has issued gold delivery guarantees to several counterparty banks in which it guarantees the due performance of its subsidiaries AngloGold USA Trading Company, AngloGold South America Limited and Cerro Vanguardia S.A. under their respective gold hedging agreements.
⁽¹⁴⁾	At 31 December 2010, the group had no open gold hedge contracts.

30 Financial risk management activities

In the normal course of its operations, the company is exposed to gold price, other commodity price, foreign exchange, interest rate, liquidity, equity price 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 speculative purposes. The company has developed a comprehensive risk management process to facilitate, control and monitor these risks. The board has approved and monitors this risk management process, inclusive of documented treasury policies, counterparty limits and controlling and reporting structures.

Managing risk in the company
Risk management activities within the company are the ultimate responsibility of the board of directors. The chief executive officer is responsible to the board of directors for the design, implementation and monitoring of the risk management plan. The newly formed Risk and Information Integrity Committee is responsible for overseeing risk management plans and systems and the Audit and Corporate Governance Committee oversees financial risks which include a review of treasury activities and the company’s counterparties.

The financial risk management objectives of the company are defined as follows:

safeguarding the company's core earnings stream from its major assets through the effective control and management of gold price risk, other commodity risk, foreign exchange risk and interest rate risk;
effective and efficient usage of credit facilities in both the short and long term through the adoption of reliable liquidity management planning and procedures;
ensuring that investment and hedging transactions are undertaken with creditworthy counterparties; and
ensuring that all contracts and agreements related to risk management activities are co-ordinated, consistent throughout the company and that they comply where necessary with all relevant regulatory and statutory requirements.

Gold price and foreign exchange risk
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 US dollars which exposes the company to the risk that fluctuations in the SA rand/US dollar exchange rate may also have an adverse effect on current or future earnings. The company is also exposed to certain by-product commodity price risk.

During the year the company had utilised derivatives as part of its hedging of these risks. In order to provide financial exposure to the rising spot price of gold and the potential for enhanced cash-flow generation the company completed its final tranche of the hedge buy-back programme and settled all forward gold and foreign exchange contracts that had been used by the company in the past to manage those risks. At year-end, there were no net forward sales contracts (2009: 1,189kg), net call options sold (2009: 44,742kg) and net put options sold (2009: 15,381kg) outstanding.

Cash flow hedges
The company's cash flow hedges consist of commodity forward contracts that are used to protect against exposures to variability in future commodity cash flows. The amounts and timing of future cash flows are projected for each portfolio of financial assets and liabilities on the basis of their contractual terms and other relevant factors, including estimates of prepayments and defaults. The contractual cash flows across all portfolios over time form the basis for identifying gains and losses on the effective portions of derivatives designated as cash flow hedges of forecast transactions. Gains and losses are initially recognised directly in other comprehensive income and are transferred to earnings as gold income when the forecast transactions affect the income statement.

The company does not have any cash flow hedge contracts relating to product sales as at 31 December 2010.

The gains and losses on ineffective portions of such derivatives are recognised in the income statement. During the year to 31 December 2010, a loss of nil (2009: R22m) was recognised on non-hedge derivatives and other commodity contracts in the income statement due to hedge ineffectiveness.

Non-hedge derivatives
Loss on non-hedge derivatives and other commodity contracts is summarised as follows:

Figures in million	2010	2009
	SA Rands
Loss on hedge buy-back costs	(7,631)	–
(Loss) gain on realised non-hedge derivatives and other commodity contracts	(932)	58
Gain (loss) on unrealised non-hedge derivatives and other commodity contracts	7,080	(4,148)
Loss on non-hedge derivatives and other commodity contracts per the income statement	(1,483)	(4,090)

The loss on non-hedge derivatives and other commodity contracts was R1,483m (2009: R4,090m). This was as a result of the accelerated hedge book settlement, normal realised losses on non-hedge derivatives and the revaluation of non-hedge derivatives resulting from changes in the prevailing spot gold price, exchange rates, interest rates, volatilities and credit risk compared to the previous year. The realised loss as a result of accelerated settlement of non-hedge derivatives was R7,631m (2009: nil) and was due to the hedge book elimination that was effected during the current year.

Net open hedge position as at 31 December 2010 As at 31 December 2010, the company had no outstanding commitments against future production as a result of the elimination of the hedge book. At 31 December 2009, the marked-to-market value of all derivatives, irrespective of accounting designation, making up the hedge position was negative R6.98bn based on a gold price of $1,102 per ounce, an exchange rate of $1 = R7.4350 and the market interest rates and volatilities prevailing at that date.

The table below reflects the hedge position as at 31 December 2010.

Summary: All open contracts in the company’s commodity hedge position as at 31 December 2010

Year

2010

2009

US Dollar/Gold

Forward contracts

Amount (kg)

–

2,433 ⁽¹⁾

$/oz

–

$532 ⁽¹⁾

Put options sold

Amount (kg)

–

14,137

$/oz

–

$665

Call options sold

Amount (kg)

–

43,498

$/oz

–

$522

⁽¹⁾	Represents a net short gold position and net short US dollars position, resulting from both forward sales and purchases for the period.

Year

2010

2009

SA Rand/Gold

Forward contracts

Amount (kg)

–

(1,244) ⁽²⁾

R/kg

–

R232,225 ⁽²⁾

Put options sold

Amount (kg)

–

1,244

R/kg

–

R240,326

Call options sold

Amount (kg)

–

1,244

R/kg

–

R262,832

Total net gold

Delta (kg)

–

(41,235) ⁽³⁾

Delta (oz)

–

(1,325,722) ⁽³⁾

The open delta hedge position of the company at 31 December 2010 was nil (31 December 2009: 1.33Moz or 41t).

⁽²⁾	Represents a net long gold position and net short US dollars/rands position, resulting from both forward sales and purchases for the period.
⁽³⁾	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.

As at 31 December 2010, the company had no open forward exchange or option contracts in its currency and gold hedge position.

The mix of hedging instruments, the volume of production hedged and the tenor of the hedge 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 the underlying at a specified price.

A put option gives the put buyer the right, but not the obligation, to sell the underlying 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 the underlying from the call seller at a predetermined price on a predetermined date.

Interest rate and liquidity risk
Refer note 35 in the group financial statements.

The following are the contractual maturities of financial liabilities, including interest payments.

Non-derivative financial liabilities

		Within one year Effective rate		Between one and two years Effective rate		Between two and five years Effective rate		After five years Effective rate
		Million	%	Million	%	Million	%	Million	%
2010	ZAR
Financial guarantees ⁽⁴⁾		100		–		16,567	3.7	6,570	5.7
Borrowings		745	7.3	28	9.8	99	9.8	314	9.8
Trade and other payables		3,969		–		–		–

Within one year
Effective
rate

Between one
and two years
Effective
rate

Between two
and five years
Effective
rate

After five years
Effective
rate

Million

2009

ZAR

Financial guarantees ⁽⁴⁾

10,409

1.6

–

5,446

3.5

100

Borrowings

9.8

350

9.8

Trade and other payables

1,420

–

⁽⁴⁾	Not included in the statement of financial position.

Derivative financial assets and (liabilities)
At 31 December 2010, the company had no open hedge and non-hedge contracts as a result of the hedge book elimination. The following were the undiscounted forecast principal cash flows arising from all derivative contracts included in the statement of financial position (cash flow hedges and non-hedges) as at 31 December 2009 based on scheduled maturity dates:

Figures in million	Within one year	Between one and two years	Between two and five years	After five years	Total
SA Rands
At 31 December 2009
Cash inflows from assets	658	217	93	–	968
Cash outflows from liabilities	(2,172)	(2,694)	(3,746)	–	(8,612)
Net cash outflows	(1,514)	(2,477)	(3,653)	–	(7,644)

Credit risk Refer note 35 in the group financial statements.

The combined maximum credit risk exposure of the company is as follows:

Figures in million	2010	2009
	SA Rands
Forward sale commodity contracts	–	944
Total derivatives	–	944
Other investments (note 12)	14	14
Other non-current assets	4	7
Trade and other receivables	413	302
Cash restricted for use	9	8
Cash and cash equivalents (note 18)	1,000	1,720
Total financial assets	1,440	2,995
Financial guarantees	23,237	15,955
Hedging guarantees	–	9,256
Total	24,677	28,206

The company has trade and other receivables that are past due totalling R58m (2009: R153m) and an impairment totalling R44m (2009: R67m). Trade and other receivables arise mainly due to intergroup transactions. The principal receivables continue to be in a sound financial position. No other financial assets are past due but not impaired. Fair value of financial instruments The estimated fair values of financial instruments are determined at discrete points in time based on relevant market information. The estimated fair value of the company’s financial instruments as at 31 December are as follows: Type of instrument

	Carrying	Fair	Carrying	Fair
Figures in million	amount	value	amount	value
SA Rands	2010		2009
Financial assets
Other investments (note 12)	44	43	16	14
Other non-current assets	4	4	7	8
Trade and other receivables	413	413	302	302
Cash restricted for use	9	9	8	8
Cash and cash equivalents (note 18)	1,000	1,000	1,720	1,720
Derivatives	–	–	944	944
Financial liabilities
Borrowings (note 21)	960	960	258	258
Trade and other payables	3,969	3,969	1,737	1,737
Derivatives	–	–	7,948	7,948
The amounts in the tables above do not necessarily agree with the totals in the notes as only financial assets and liabilities are shown.

The following methods and assumptions were used to estimate the fair value of each class of financial instrument:

Cash restricted for use, cash and cash equivalents and trade and other payables The carrying amounts approximate fair value because of the short-term duration of these instruments

Trade and other receivables The fair value of the non-current portion of trade and other receivables has been calculated using market interest rates.

Investments and other non-current assets Listed equity investments classified as available-for-sale are carried at fair value while fixed income investments and other non-current assets are carried at amortised cost. The fair value of fixed income investments and other non-current assets has been calculated using market interest rates. The unlisted equity investment is carried at cost. There is no active market for the unlisted equity investment and fair value cannot be reliably measured.

Borrowings The interest rate on the borrowings is reset on a short-term floating rate basis, and accordingly the carrying amount is considered to approximate fair value.

Derivatives The fair value of derivatives are estimated based on ruling market prices, volatilities, interest rates and credit risk as at 31 December and includes all derivatives carried in the statement of financial position.

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. The company uses volatility inputs supplied by leading market participants (international banks).

There are no open hedge positions as a result of the hedge book elimination during 2010.

Derivative assets (liabilities) comprise the following:

Figures in million	Cash flow hedge accounted	Assets Non- hedge accounted	Total	Cash flow hedge accounted	Liabilities Non- hedge accounted	Total
SA Rands	2009			2009
Commodity option contracts	–	–	–	–	(6,127)	(6,127)
Forward sale commodity contracts	–	944	944	(276)	(1,545)	(1,821)
Total derivatives	–	944	944	(276)	(7,672)	(7,948)

At 31 December 2010, the company had no open derivative positions in the hedge book. The impact of credit risk adjustment totalled R393m at 31 December 2009.

The company uses the following hierarchy for determining and disclosing the fair value of financial instruments:

Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities;

Level 2: inputs other than quoted prices included in level 1 that are observable for the asset or liability, either directly (as prices) or indirectly (derived from prices); and

Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).

The following table sets out the company's financial assets and liabilities measured at fair value by level within the fair value hierachy as at 31 December.

Type of instrument

Figures in million	Level 1	Level 2	Level 3	Total	Level 1	Level 2	Level 3	Total
SA Rands	2010				2009
Assets measured at fair value
Financial assets at fair value through profit or loss
Forward sale commodity contracts – non-hedged	–	–	–	–	–	944	–	944
Available-for-sale financial assets
Equity securities	29	–	–	29	–	–	–	–
Liabilities measured at fair value
Financial liabilities at fair value through profit or loss
Commodity option contracts
– non-hedged	–	–	–	–	–	6,127	–	6,127
Forward sale commodity contracts – non-hedged	–	–	–	–	–	1,545	–	1,545
Cash flow hedges
Forward sale commodity contracts – cash flow hedged	–	–	–	–	–	276	–	276

The amounts in the tables above do not necessarily agree with the totals in the notes as only financial assets and liabilities are shown.

Sensitivity analysis Derivatives A principal part of the company's management of risk is to monitor the sensitivity of derivative positions in the hedge book to changes in the underlying factors, viz. commodity price, foreign exchange rate and interest rates under varying scenarios.

The following table discloses the approximate sensitivities of the US dollar’s marked-to-market value of the hedge book to key underlying factors at 31 December 2009 (actual changes in the timing and amount of the following variables may differ from the assumed changes below). There are no open hedge positions as a result of the hedge book elimination during 2010.

	Change in underlying factor (+)	Cash flow hedge accounted million	Non-hedge accounted million	Total change in fair value million
SA Rands	2009
Currency (R/$)	Spot(+R1)	–	12	12
Gold price ($/oz)	Spot(+$250)	(93)	(2,492)	(2,585)
ZAR interest rate (%)	IR(+1.5%)	1	–	1

		Change in underlying factor (-)	Cash flow hedge accounted million	Non-hedge accounted million	Total change in fair value million
	SA Rands	2009
	Currency (R/$)	Spot(-R1)	–	(42)	(42)
	Gold price ($/oz)	Spot(-$250)	93	2,170	2,263
	ZAR interest rate (%)	IR(-1.5%)	(1)	–	(1)

	IR represents interest rate.

	Interest rate risk on other financial assets and liabilities (excluding derivatives)

	Refer note 35 in the group financial statements.
31	Capital management
	Capital is managed on a group basis only and not on a company basis. Refer to note 36 in the group financial statements

Print

Download

Interactive centre

Related information

Company – Notes to the company financial statements

For the year ended 31 December

1

Revenue

2

Cost of sales

3

Other operating expenses

4

Special items

5

Finance costs and unwinding of obligations

6

Profit (loss) before taxation

7

Employee benefits

8

Taxation

9

Tangible assets

10

Investments in associates and joint venture

11

Investment in subsidiaries

12

Other investments

13

Inventories

14

Investment in Environmental Rehabilitation Trust Fund

15

Intra-group balances

16

Other non-current assets

17

Trade and other receivables

18

Cash and cash equivalents

19

Non-current assets and liabilities held for sale

20

Share capital and premium

21

Borrowings

22

Environmental rehabilitation provisions

23

Provision for pension and post-retirement benefits

24

Deferred taxation

25

Trade and other payables

26

Taxation

27

Cash generated from operations

28

Related parties

29

Contractual commitments and contingencies

30

Financial risk management activities

31

Capital management