JOHANNESBURG, SOUTH AFRICA -- (Marketwire) -- 09/30/08 -- AngloGold Ashanti (NYSE: AU)
restatement of results for the second quarter and six months ended 30 June
2008 -- reduction in headline loss
The unaudited results for the quarter and six months ended 30 June 2008
were released on SENS on 31 July 2008. Following the publication of these
results, AngloGold Ashanti has reassessed the accounting estimate for
income taxes, for the effects and impact of the accelerated non-hedge
derivative settlements in accordance with IAS34 - Interim Financial
Reporting. Following this reassessment, the income tax expense has been
reduced by R641 million (US$81m) for the period. This is as a result of
IAS34 requiring that the income tax expense for interim reporting purposes
to be calculated by applying to an interim period's pre-tax income, the
estimated average annual effective income tax rate that would be applicable
to the expected total annual earnings. It should be noted that the
overprovision would have been reversed by financial year-end and therefore
would not have had any effect on the full year's income tax expense and
earnings. Nevertheless, in compliance with IAS34, AngloGold Ashanti has
decided to revise its results for the quarter and six months ended 30 June
2008.
The effect of the reassessment is as follows:
Group Income Statement
Six months ended June 2008
As Published Adjustment Restated
--------------- -------------- ---------------
R m $ m R m $ m R m $ m
------- ------- ------ ------ ------- -------
Taxation expense 1,183 156 (641) (81) 542 75
Net loss attributable to
ordinary shareholders 4,630 310 (641) (81) 3,989 229
------- ------- ------ ------ ------- -------
Group Balance Sheet
at end June 2008
As Published Adjustment Restated
--------------- -------------- ---------------
R m $ m R m $ m R m $ m
------- ------- ------ ------ ------- -------
Taxation payable 1,313 168 (248) (31) 1,065 137
Deferred taxation 8,366 1,068 (393) (50) 7,973 1,018
------- ------- ------ ------ ------- -------
For completeness, those pages of the report as published which are affected
by the above revision have been corrected and are attached.
Restated documents attached:
Summary of operating and financial review
Group Income Statement
Group Balance Sheet
Statement of recognised income and expense
Notes:
1 Taxation
2 Retained earnings and other reserves
3 Headline (loss) earnings
Certain statements made during this communication, including, without
limitation, those concerning the economic outlook for the gold mining
industry, expectations regarding gold prices, production, cash costs and
other operating results, growth prospects and the outlook of AngloGold
Ashanti's operations including the completion and commencement of
commercial operations of certain of AngloGold Ashanti's exploration and
production projects, and its liquidity and capital resources and
expenditure, contain certain forward-looking statements regarding
AngloGold Ashanti's operations, economic performance and financial
condition. Although AngloGold Ashanti believes that the expectations
reflected in such forward-looking statements are reasonable, no assurance
can be given that such expectations will prove to have been correct.
Accordingly, results could differ materially from those set out in the
forward-looking statements as a result of, among other factors, changes in
economic and market conditions, success of business and operating
initiatives, changes in the regulatory environment and other government
actions, fluctuations in gold prices and exchange rates, and business and
operational risk management. For a discussion of such factors, refer to
AngloGold Ashanti's annual report for the year ended 31 December 2007,
which was distributed to shareholders on 31 March 2008. AngloGold Ashanti
undertakes no obligation to update publicly or release any revisions to
these forward-looking statements to reflect events or circumstances after
today's date or to reflect the occurrence of unanticipated events.
Report
Restated for the quarter and six months ended 30 June 2008
Six Six
Quarter months Quarter months
ended ended ended ended
Jun Jun Jun Jun
2008 2008 2008 2008
Restated Restated Restated Restated
-------- -------- -------- --------
SA rand/Metric US dollar/Imperial
Operating review
Gold
Produced - kg / oz (000) 38,984 76,194 1,253 2,450
Price received - R/kg / $/oz (44,303) 67,390 (157) 289
Price received normalised for
accelerated settlement of
non-hedge derivatives
- R/kg / $/oz 178,796 181,303 717 736
Total cash costs - R/kg / $/oz 108,195 106,429 434 433
Total production costs
- R/kg / $/oz 138,115 137,238 554 558
Financial review
Gross profit (loss) - Rm / $m 787 (2,573) 36 (41)
Gross loss adjusted for the gain
(loss) on unrealised non-hedge
derivatives and other commodity
contracts - Rm / $m (6,909) (4,814) (866) (592)
Adjusted gross profit normalised
for accelerated settlement of
non-hedge derivatives - Rm / $m 1,726 3,821 223 497
Loss attributable to equity
shareholders - Rm / $m (176) (3,989) (87) (229)
Headline loss(1) - Rm / $m (713) (4,593) (156) (307)
Headline loss adjusted for the gain
(loss) on unrealised non-hedge
derivatives, other commodity
contracts and fair value
adjustments on convertible bond
- Rm / $m (6,877) (6,064) (865) (761)
Capital expenditure - Rm / $m 2,357 4,287 304 561
Loss per ordinary share
- cents/share
Basic (62) (1,412) (30) (81)
Diluted (62) (1,412) (30) (81)
Headline(1) (252) (1,626) (55) (108)
Headline loss adjusted for the gain
(loss) on unrealised non-hedge
derivatives, other commodity
contracts and fair value
adjustments on convertible bond
- cents/share (2,434) (2,147) (306) (269)
-------- -------- -------- --------
Notes: 1. Refer to note 3 "Notes" for the definition.
$ represents US dollar, unless otherwise stated.
Rounding of figures may result in computational discrepancies.
Group income statement
Six
Quarter months
ended ended
June June
2008 2008
Restated Restated
SA Rand million Note Unaudited Unaudited
-------- --------- ---------
Revenue 7,720 15,191
========= =========
Gold income 7,508 14,753
Cost of sales (5,406) (10,398)
Loss on non-hedge derivatives and other
commodity contracts (1,316) (6,928)
--------- ---------
Gross profit (loss) 787 (2,573)
Corporate administration and other expenses (252) (467)
Market development costs (24) (48)
Exploration costs (269) (542)
Other operating expenses (48) (16)
Operating special items 273 355
========= =========
Operating profit (loss) 467 (3,291)
Interest received 102 184
Exchange loss (28) (27)
Fair value adjustment on option component of
convertible bond 12 183
Finance costs and unwinding of obligations (216) (481)
Share of associates' profit 10 10
--------- ---------
Profit (loss) before taxation 348 (3,423)
Taxation 1 (594) (542)
--------- ---------
Loss after taxation from continuing
operations (246) (3,966)
Discontinued operations
Profit for the period from discontinued
operations 191 188
--------- ---------
Loss for the period (56) (3,778)
========= =========
Allocated as follows:
Equity shareholders (176) (3,989)
Minority interest 121 211
--------- ---------
(56) (3,778)
========= =========
Basic loss per ordinary share (cents)(1)
Loss from continuing operations (130) (1,479)
Profit from discontinued operations 68 67
--------- ---------
Loss (62) (1,412)
========= =========
Diluted loss per ordinary share (cents)(2)
Loss from continuing operations(3) (130) (1,479)
Profit from discontinued operations(3) 68 67
--------- ---------
Loss(3) (62) (1,412)
========= =========
Dividends(4)
- Rm 148
- cents per Ordinary share 53
- cents per E Ordinary share 26
-------- --------- ---------
(1) Calculated on the basic weighted average number of ordinary shares.
(2) The impact of the diluted earnings per share is anti-dilutive and
therefore equal to the basic earnings per share.
(3) Calculated on the diluted weighted average number of ordinary shares.
(4) Represents the dividend declared and paid during the period.
Rounding of figures may result in computational discrepancies.
Group income statement
Six
Quarter months
ended ended
June June
2008 2008
Restated Restated
US Dollar million Note Unaudited Unaudited
-------- --------- ---------
Revenue 996 1,983
========= =========
Gold income 968 1,926
Cost of sales (698) (1,359)
Loss on non-hedge derivatives and other
commodity contracts (235) (608)
--------- ---------
Gross profit (loss) 36 (41)
Corporate administration and other expenses (33) (61)
Market development costs (3) (6)
Exploration costs (34) (71)
Other operating expenses (6) (2)
Operating special items 36 47
========= =========
Operating loss (4) (134)
Interest received 13 24
Exchange loss (4) (4)
Fair value adjustment on option component of
convertible bond 2 24
Finance costs and unwinding of obligations (28) (63)
Share of associates' profit 1 1
--------- ---------
Loss before taxation (20) (151)
Taxation 1 (76) (75)
========= =========
Loss after taxation from continuing
operations (95) (226)
Discontinued operations
Profit for the period from discontinued
operations 24 24
--------- ---------
Loss for the period (71) (202)
========= =========
Allocated as follows:
Equity shareholders (87) (229)
Minority interest 16 27
--------- ---------
(71) (202)
========= =========
Basic loss per ordinary share (cents)(1)
Loss from continuing operations (39) (89)
Profit from discontinued operations 9 8
--------- ---------
Loss (30) (81)
========= =========
Diluted loss per ordinary share (cents)(2)
Loss from continuing operations(3) (39) (89)
Profit from discontinued operations(3) 9 8
--------- ---------
Loss(3) (30) (81)
========= =========
Dividends(4)
- $m 18
- cents per Ordinary share 7
- cents per E Ordinary share 3
-------- --------- ---------
(1) Calculated on the basic weighted average number of ordinary shares.
(2) The impact of the diluted earnings per share is anti-dilutive and
therefore equal to the basic earnings per share.
(3) Calculated on the diluted weighted average number of ordinary shares.
(4) Represents the dividend declared and paid during the period.
Rounding of figures may result in computational discrepancies.
Group balance sheet
As at
June
2008
Restated
SA Rand million Note Unaudited
-------- ---------
ASSETS
Non-current assets
Tangible assets 53,752
Intangible assets 3,649
Investments in associates 396
Other investments 633
Inventories 3,030
Trade and other receivables 864
Deferred taxation 655
Other non-current assets 281
---------
63,259
---------
Current assets
Inventories 5,778
Trade and other receivables 1,905
Derivatives 4,810
Current portion of other non-current assets 2
Cash restricted for use 547
Cash and cash equivalents 3,914
---------
16,955
Non-current assets held for sale 10
---------
16,965
=========
---------
TOTAL ASSETS 80,224
---------
EQUITY AND LIABILITIES
Share capital and premium 22,495
Retained earnings and other reserves 2 (5,932)
---------
Shareholders' equity 16,562
Minority interests 637
=========
Total equity 17,199
---------
Non-current liabilities
Borrowings 7,387
Environmental rehabilitation and other provisions 4,049
Provision for pension and post-retirement benefits 1,247
Trade, other payables and deferred income 68
Derivatives 350
Deferred taxation 7,973
=========
21,074
---------
Current liabilities
Current portion of borrowings 10,103
Trade, other payables and deferred income 12,658
Derivatives 18,126
Taxation 1,065
=========
41,952
---------
---------
Total liabilities 63,025
---------
---------
TOTAL EQUITY AND LIABILITIES 80,224
=========
Net asset value - cents per share 6,100
Rounding of figures may result in computational discrepancies.
Group balance sheet
As at
June
2008
Restated
US Dollar million Note Unaudited
-------- ---------
ASSETS
Non-current assets
Tangible assets 6,862
Intangible assets 466
Investments in associates 51
Other investments 81
Inventories 387
Trade and other receivables 110
Deferred taxation 84
Other non-current assets 36
---------
8,076
=========
Current assets
Inventories 738
Trade and other receivables 243
Derivatives 614
Cash restricted for use 70
Cash and cash equivalents 500
---------
2,164
Non-current assets held for sale 1
---------
2,165
---------
---------
TOTAL ASSETS 10,241
---------
EQUITY AND LIABILITIES
Share capital and premium 2,872
Retained earnings and other reserves 2 (758)
---------
Shareholders' equity 2,114
Minority interests 81
=========
Total equity 2,195
---------
Non-current liabilities
Borrowings 943
Environmental rehabilitation and other provisions 517
Provision for pension and post-retirement benefits 159
Trade, other payables and deferred income 9
Derivatives 45
Deferred taxation 1,018
---------
2,690
=========
Current liabilities
Current portion of borrowings 1,290
Trade, other payables and deferred income 1,616
Derivatives 2,314
Taxation 137
---------
5,356
---------
=========
Total liabilities 8,046
---------
---------
TOTAL EQUITY AND LIABILITIES 10,241
=========
Net asset value - cents per share 779
Rounding of figures may result in computational discrepancies.
Statement of recognised income and expense
Six Six
months months
ended ended
June June
2008 2008
Restated Restated
Unaudited Unaudited
--------- ---------
SA Rand US Dollar
million million
--------- ---------
Net loss on cash flow hedges removed from equity and
reported in gold sales 1,017 134
Net loss on cash flow hedges (763) (100)
Hedge effectiveness (2) -
Loss on available-for-sale financial assets (67) (9)
Deferred taxation on items above (51) (6)
Translation 4,108 351
--------- ---------
Net income recognised directly in equity 4,242 370
Loss for the period (3,778) (202)
--------- ---------
Total recognised income for the period 464 168
--------- ---------
Attributable to:
Equity shareholders 203 143
Minority interest 261 25
--------- ---------
464 168
--------- ---------
Rounding of figures may result in computational discrepancies.
Notes
for the second quarter and six months ended 30 June 2008
1. Taxation
Six Six
Quarter months Quarter months
ended ended ended ended
June June June June
2008 2008 2008 2008
Restated Restated Restated Restated
Unaudited Unaudited Unaudited Unaudited
-------------------- --------------------
SA Rand million US Dollar million
-------------------- --------------------
Current tax
Normal taxation (22) (599) (5) (80)
Disposal of tangible
assets (note 3) (3) (5) - (1)
Under provision prior year (28) (14) (4) (2)
--------- --------- --------- ---------
(53) (618) (9) (83)
--------- --------- --------- ---------
Deferred taxation
Temporary differences 997 845 126 105
Unrealised non-hedge
derivatives and other
commodity contracts (1,545) (954) (194) (122)
Disposal of tangible
assets (note 3) 7 (4) 1 -
Change in statutory tax rate - 189 - 25
--------- --------- --------- ---------
(541) 76 (67) 8
--------- --------- --------- ---------
Total taxation (594) (542) (76) (75)
--------- --------- --------- ---------
Rounding of figures may result in computational discrepancies.
2. Retained earnings and other reserves
-----------------------------------------------------
Foreign
currency Other
Non-dist- trans- Actuarial compre-
Retained ributable lation (losses) hensive
earnings reserves reserve gains income Total
-------- --------- -------- ------- ------- ------
SA Rand million -
Restated
-------- --------- -------- ------- ------- ------
Balance at
December 2007 (5,524) 138 338 (108) (1,011) (6,167)
Deferred taxation
rate change (3) (3)
Loss attributable
to equity
shareholders (3,989) (3,989)
Dividends (148) (148)
Transfers to
foreign currency
translation
reserve (12) 12 -
Disposal of
subsidiary (6) (6)
Net loss on cash
flow hedges
removed from
equity and
reported in
gold sales 1,005 1,005
Net loss on cash
flow hedges (758) (758)
Hedge
ineffectiveness (2) (2)
Deferred taxation
on cash flow
hedges and hedge
effectiveness (64) (64)
Loss on available-
for-sale financial
assets (67) (67)
Deferred taxation
on available-for-
sale financial
assets 16 16
Share-based payment
for share awards
and BEE transaction 186 186
Translation 4,175 2 (112) 4,065
-------- --------- -------- ------- ------- ------
Balance at June
2008 (9,673) 138 4,525 (109) (813) (5,932)
-------- --------- -------- ------- ------- ------
-----------------------------------------------------
Foreign
currency Other
Non-dist- trans- Actuarial compre-
Retained ributable lation (losses) hensive
earnings reserves reserve gains income Total
------- -------- -------- ------- ------- ------
US Dollar million -
Restated
------- -------- -------- ------- ------- ------
Balance at
December 2007 (1,020) 20 258 (16) (148) (906)
Deferred taxation
rate change -
Loss attributable
to equity
shareholders (229) (229)
Dividends (18) (18)
Transfers to
foreign currency
translation
reserve (2) 2 -
Disposal of
subsidiary (1) (1)
Net loss on cash
flow hedges
removed from
equity and
reported in
gold sales 132 132
Net loss on cash
flow hedges (99) (99)
Hedge
ineffectiveness - -
Deferred taxation
on cash flow
hedges and hedge
effectiveness (8) (8)
Loss on available-
for-sale financial
assets (9) (9)
Deferred taxation
on available-for-
sale financial
assets 2 2
Share-based payment
for share awards
and BEE transaction 24 24
Translation (2) 351 2 3 354
------- -------- -------- ------- ------- ------
Balance at June
2008 (1,269) 18 611 (14) (104) (758)
------- -------- -------- ------- ------- ------
Rounding of figures may result in computational discrepancies.
3. Headline loss
Quarter Six months Quarter Six months
ended ended ended ended
June June June June
2008 2008 2008 2008
Restated Restated Restated Restated
Unaudited Unaudited Unaudited Unaudited
---------- ---------- ---------- ----------
SA Rand million US Dollar million
---------------------- ----------------------
The loss attributable to
equity shareholders has
been adjusted by the
following to arrive at
headline loss:
Loss attributable to
equity shareholders (176) (3,989) (87) (229)
Impairment of tangible
assets 1 4 - -
Profit on disposal and
abandonment of assets (272) (357) (35) (46)
Profit on disposal of
investment in subsidiary (29) (29) (4) (4)
Profit on disposal of
discontinued assets (217) (217) (27) (27)
Impairment of investment in
associate 13 14 2 2
Profit on disposal of
assets in associate (23) (23) (3) (3)
Taxation on items above -
current portion (note 1) 3 5 - 1
Taxation on items above -
deferred portion (note 1) (7) 4 (1) -
Discontinued operation -
Taxation on item above (6) (6) (1) (1)
---------- ---------- ---------- ----------
Headline loss (713) (4,593) (156) (307)
---------- ---------- ---------- ----------
Cents per share(1)
Headline loss (252) (1,626) (55) (108)
(1) Calculated on the basic weighted average number of ordinary shares.
Rounding of figures may result in computational discrepancies.
Queries
South Africa
Himesh Persotam (Investors)
Tel: +27 (0) 11 637 6647
Mobile: +27 (0) 823393890
E-mail: Email Contact
Alan Fine (Media)
Tel: +27 (0) 11 637 6383
Mobile: +27 (0) 833500757
E-mail: Email Contact
Joanne Jones (Media)
Tel: +27 (0) 11 637 6813
Mobile: +27 (0) 828960306
E-mail: Email Contact
