Document and Entity Information
Document and Entity Information (USD $) | |
Dec. 31, 2009
| |
Entity Public Float | $14,102,520,767 |
Common stock | |
Entity Common Stock Shares Outstanding | 362,240,669 |
E Ordinary Shares | |
Entity Common Stock Shares Outstanding | 3,794,998 |
A Redeemable Preference Shares | |
Entity Common Stock Shares Outstanding | 2,000,000 |
B Redeemable Preference Shares | |
Entity Common Stock Shares Outstanding | 778,896 |
Statement of Earnings
Statement of Earnings (USD $) | |||
In Millions, except Share data | 12 Months Ended
Dec. 31, 2009 | 12 Months Ended
Dec. 31, 2008 | 12 Months Ended
Dec. 31, 2007 |
Statement of income | |||
Sales and other income | $3,954 | $3,730 | $3,095 |
Product sales | 3,784 | 3,655 | 3,048 |
Interest, dividends and other | 170 | 75 | 47 |
Costs and expenses | 4,852 | 4,103 | 3,806 |
Production costs | 2,229 | 2,159 | 1,917 |
Exploration costs | 150 | 126 | 117 |
Related party transactions | (18) | (10) | (16) |
General and administrative | 158 | 136 | 130 |
Royalties | 84 | 78 | 70 |
Market development costs | 10 | 13 | 16 |
Depreciation, depletion and amortization | 615 | 615 | 655 |
Impairment of assets | 8 | 670 | 1 |
Interest expense | 123 | 72 | 75 |
Accretion expense | 17 | 22 | 20 |
Employment severance costs | 14 | 9 | 19 |
Loss Profit On Sale Of Assets Realization Of Loans Indirect Tax And Other | 10 | (64) | 10 |
Non-hedge derivative loss | 1,452 | 258 | 808 |
Other operating items | 0 | 19 | (16) |
Loss from continuing operations before income tax and equity income in affiliates | (898) | (373) | (711) |
Taxation benefit/(expense) | 33 | (22) | (118) |
Equity income/(loss) in affiliates | 88 | (149) | 41 |
Net loss from continuing operations | (777) | (544) | (788) |
Discontinued operations | 0 | 23 | 2 |
Net loss | (777) | (521) | (786) |
Less: Net income attributable to noncontrolling interests | (48) | (42) | (28) |
Net loss - attributable to AngloGold Ashanti | (825) | (563) | (814) |
Net loss - attributable to AngloGold Ashanti | |||
Loss from continuing operations | (825) | (586) | (816) |
Discontinued operations | $0 | $23 | $2 |
From continuing operations | |||
Per ordinary share | -2.3 | -1.86 | -2.93 |
Per E ordinary share | -1.15 | -0.93 | -1.46 |
Per ordinary share - diluted | -2.3 | -1.86 | -2.93 |
Per E ordinary share - diluted | -1.15 | -0.93 | -1.46 |
Discontinued operations | |||
Per ordinary share | $0 | 0.07 | 0.01 |
Per E ordinary share | $0 | 0.04 | $0 |
Per ordinary share - diluted | $0 | 0.07 | 0.01 |
Per E ordinary share - diluted | $0 | 0.04 | $0 |
Net loss | |||
Per ordinary share | -2.3 | -1.79 | -2.92 |
Per E ordinary share | -1.15 | -0.89 | -1.46 |
Per ordinary share - diluted | -2.3 | -1.79 | -2.92 |
Per E ordinary share - diluted | -1.15 | -0.89 | -1.46 |
Weighted average number of shares used in computation | |||
Ordinary shares | 357,355,126 | 313,157,584 | 277,337,292 |
E Ordinary shares - basic and diluted | 3,873,169 | 4,046,364 | 4,117,815 |
Ordinary shares - diluted Weighted | 357,355,126 | 313,157,584 | 277,337,292 |
Dividend paid per ordinary share (cents) | 0.13 | 0.13 | 0.44 |
Dividend paid per E ordinary share (cents) | 0.07 | 0.07 | 0.22 |
Statement of Financial Position
Statement of Financial Position (USD $) | ||
In Millions | Dec. 31, 2009
| Dec. 31, 2008
|
ASSETS | ||
Current Assets | $2,811 | $2,947 |
Cash and cash equivalents | 1,100 | 575 |
Restricted cash | 65 | 44 |
Receivables | 206 | 224 |
Trade | 45 | 39 |
Recoverable taxes, rebates, levies and duties | 82 | 64 |
Related parties | 5 | 4 |
Other | 74 | 117 |
Inventories | 663 | 552 |
Materials on the leach pad | 40 | 49 |
Derivatives | 330 | 571 |
Deferred taxation assets | 333 | 150 |
Assets held for sale | 74 | 782 |
Property, plant and equipment, net | 5,454 | 4,765 |
Acquired properties, net | 831 | 814 |
Goodwill | 162 | 132 |
Other intangibles, net | 18 | 20 |
Derivatives | 5 | 0 |
Other long-term inventory | 26 | 40 |
Materials on the leach pad | 324 | 261 |
Other long-term assets | 969 | 421 |
Deferred taxation assets | 62 | 51 |
Total assets | 10,662 | 9,451 |
LIABILITIES AND EQUITY | ||
Current liabilities | 4,475 | 3,458 |
Trade accounts payable | 340 | 314 |
Payroll and related benefits | 147 | 92 |
Other current liabilities | 120 | 157 |
Derivatives | 2,525 | 1,758 |
Short-term debt | 1,292 | 1,067 |
Tax payable | 42 | 28 |
Liabilities held for sale | 9 | 42 |
Other non-current liabilities | 163 | 117 |
Long-term debt | 667 | 873 |
Derivatives | 176 | 130 |
Deferred taxation liabilities | 1,171 | 1,008 |
Provision for environmental rehabilitation | 385 | 302 |
Provision for labor, civil, compensation claims and settlements | 33 | 31 |
Provision for pension and other post-retirement medical benefits | 147 | 126 |
Commitments and contingencies | ||
Equity | 3,445 | 3,406 |
Share capital - 600,000,000 (2008 - 400,000,000) authorized common stock of 25 ZAR cents each. Stock issued 2009 - 362,240,669 (2008 - 353,483,410) | 12 | 12 |
Additional paid in capital | 7,836 | 7,502 |
Accumulated deficit | (3,914) | (3,044) |
Accumulated other comprehensive income (net of tax) | (654) | (1,148) |
Other reserves | 37 | 0 |
Total AngloGold Ashanti stockholders' equity | 3,317 | 3,322 |
Noncontrolling interests | 128 | 84 |
Total liabilities and equity | $10,662 | $9,451 |
1_Statement of Financial Positi
Statement of Financial Position (Parentheticals) | ||||
Dec. 31, 2009
| Dec. 31, 2009
ZAR () | Dec. 31, 2008
| Dec. 31, 2008
ZAR () | |
Balance Sheet | ||||
Common Stock Par Or Stated Value Per Share | 25 | 25 | ||
Common Stock Shares Authorized | 600,000,000 | 400,000,000 | ||
Common Stock Shares Issued | 362,240,669 | 353,483,410 |
Statement of Cash Flows
Statement of Cash Flows (USD $) | |||
In Millions | 12 Months Ended
Dec. 31, 2009 | 12 Months Ended
Dec. 31, 2008 | 12 Months Ended
Dec. 31, 2007 |
Statement of Cash Flows | |||
Net cash provided by operating activities | $443 | $64 | $561 |
Net loss | (777) | (521) | (786) |
Reconciled to net cash provided by operations: | |||
Loss/(profit) on sale of assets, realization of loans, indirect taxes and other | 18 | (64) | 14 |
Depreciation, depletion and amortization | 615 | 615 | 655 |
Impairment of assets | 8 | 670 | 1 |
Deferred taxation | (199) | (72) | (73) |
Cash utilized for hedge book settlements | (797) | (1,113) | 0 |
Movement in non-hedge derivatives | 1,689 | 511 | 802 |
Equity income/(loss) in affiliates | (88) | 149 | (41) |
Dividends received from affiliates | 101 | 78 | 65 |
Other non cash items | (125) | 27 | 6 |
Net increase in provision for environmental rehabilitation, pension and other post-retirement medical benefits | 19 | 24 | 90 |
Effect of changes in operating working capital items: | |||
Receivables | (44) | (7) | (77) |
Inventories | (169) | (131) | (240) |
Accounts payable and other current liabilities | 192 | (101) | 147 |
Net cash provided by continuing operations | 443 | 65 | 563 |
Net cash used in discontinued operations | 0 | (1) | (2) |
Net cash used in investing activities | (268) | (1,593) | (1,031) |
Acquisition of assets | 0 | 0 | (40) |
Increase in non-current investments | (89) | (93) | (27) |
Affiliates and equity accounted joint ventures acquired | (354) | 0 | 0 |
Proceeds on disposal of affiliate | 0 | 48 | 0 |
Affiliates loans advanced | (2) | (4) | 0 |
Affiliates loans repaid | 0 | 4 | 0 |
Additions to property, plant and equipment | (1,019) | (1,194) | (1,015) |
Proceeds on sale of mining assets | 1,142 | 39 | 29 |
Proceeds on sale of discontinued assets | 0 | 10 | 1 |
Proceeds on sale of available for sale investments | 2 | 4 | 4 |
Proceeds on redemption of held to maturity investments | 79 | 84 | 21 |
Dividends from available for sale investments | 0 | 0 | 2 |
Cash outflows from derivatives purchased | (18) | (485) | 0 |
Cash inflows from derivatives purchased | 0 | 0 | 19 |
Loans receivable advanced | 0 | 0 | (1) |
Loans receivable repaid | 1 | 0 | 1 |
Change in restricted cash | (10) | (6) | (25) |
Net cash generated by financing activities | 303 | 1,715 | 462 |
Short-term debt repaid | (1,867) | (298) | (520) |
Short-term debt raised | 1,014 | 110 | 318 |
Issuance of stock | 306 | 1,722 | 34 |
Share issue expenses | (11) | (54) | 0 |
Long-term debt repaid | (864) | (316) | 0 |
Long-term debt raised | 1,760 | 743 | 525 |
Debt issue costs | (14) | 0 | 0 |
Cash outflows from derivatives with financing | 0 | (134) | 0 |
Cash inflows from derivatives with financing | 35 | 0 | 249 |
Dividends paid to common stockholders | (45) | (41) | (125) |
Dividends paid to noncontrolling interests | (11) | (17) | (19) |
Net increase/(decrease) in cash and cash equivalents | 478 | 186 | (8) |
Effect of exchange rate changes on cash | 47 | (88) | 14 |
Cash and cash equivalents at beginning of period | 575 | 477 | 471 |
Cash and cash equivalents at ending of period | $1,100 | $575 | $477 |
Statement of Shareholders' Equi
Statement of Shareholders' Equity (USD $) | |||||||||||||||||||
In Millions, except Share data | Common stock
| Additional Paid In Capital Member
| Accumulated other comprehensive income
| Deficit accumulated
| Other Reserves Member
| Non-controlling interests
| Total
| ||||||||||||
Opening balance (shares) at Dec. 31, 2006 | 275,307,563 | ||||||||||||||||||
Opening balance at Dec. 31, 2006 | $10 | $5,539 | ($765) | ($1,476) | $0 | $61 | $3,369 | ||||||||||||
Net loss | 0 | 0 | (814) | 0 | 28 | (786) | |||||||||||||
Cumulative Effect Of Initial Adoption Of FIN 48 | 0 | 0 | (25) | 0 | 0 | (25) | |||||||||||||
Other Comprehensive Income Foreign Currency Transaction And Translation Gain Loss Arising During Period Net Of Tax | 0 | 93 | 0 | 0 | 2 | 95 | |||||||||||||
Cash Flow Hedge Gain Loss Reclassified To Earnings Net | 0 | 200 | 0 | 0 | 2 | 202 | |||||||||||||
Other Comprehensive Income Unrealized Gain Loss On Derivatives Arising During Period Net Of Tax | 0 | (166) | 0 | 0 | (2) | (168) | |||||||||||||
Gain Loss On Cash Flow Hedge Ineffectiveness Net | 0 | 10 | 0 | 0 | 0 | 10 | |||||||||||||
Net loss on available-for-sale financial assets arising during the period, net of tax | 0 | 3 | 0 | 0 | 0 | 3 | |||||||||||||
Other Comprehensive Income Loss Net Of Tax Period Increase Decrease | 117 | ||||||||||||||||||
Comprehensive Income Net Of Tax | (669) | ||||||||||||||||||
Minority Interest Decrease From Redemptions | (9) | (9) | |||||||||||||||||
Stock Issued During Period Shares Employee Stock Ownership Plan (shares) | 1,181,882 | ||||||||||||||||||
Stock Issued During Period v Employee Stock Ownership Plan | 0 | 37 | 0 | 0 | 0 | 0 | 37 | ||||||||||||
Stock Converted From One Class To Another Class Shares (shares) | 8,026 | ||||||||||||||||||
Stock Converted From One Class To Another Class Value | 0 | 2 | 0 | 0 | 0 | 0 | 2 | ||||||||||||
Stock Issued During Period Shares Stock Options Exercised (shares) | 46,590 | ||||||||||||||||||
Stock Issued During Period Value Stock Options Exercised | 0 | 2 | 0 | 0 | 0 | 0 | 2 | ||||||||||||
Stock based compensation expense | 27 | 0 | 0 | 0 | 0 | 27 | |||||||||||||
Dividends Cash | (125) | (19) | (144) | ||||||||||||||||
Closing balance at Dec. 31, 2007 | 10 | 5,607 | (625) | (2,440) | 0 | 63 | 2,615 | ||||||||||||
Closing balance (shares) at Dec. 31, 2007 | 276,544,061 | ||||||||||||||||||
Net loss | 0 | 0 | (563) | 0 | 42 | (521) | |||||||||||||
Other Comprehensive Income Foreign Currency Transaction And Translation Gain Loss Arising During Period Net Of Tax | 0 | (597) | 0 | 0 | (8) | (605) | |||||||||||||
Cash Flow Hedge Gain Loss Reclassified To Earnings Net | 0 | 157 | 0 | 0 | 3 | 160 | |||||||||||||
Other Comprehensive Income Unrealized Gain Loss On Derivatives Arising During Period Net Of Tax | 0 | (61) | 0 | 0 | 0 | (61) | |||||||||||||
Gain Loss On Cash Flow Hedge Ineffectiveness Net | 0 | 8 | 0 | 0 | 0 | 8 | |||||||||||||
Net loss on available-for-sale financial assets arising during the period, net of tax | 0 | (29) | 0 | 0 | 0 | (29) | |||||||||||||
Release on disposal of available-for-sale financial assets during the period, net of tax | (1) | (1) | |||||||||||||||||
Other Comprehensive Income Loss Net Of Tax Period Increase Decrease | (528) | ||||||||||||||||||
Comprehensive Income Net Of Tax | (1,049) | ||||||||||||||||||
Share of capital transaction at equity accounted joint venture | 0 | 0 | 0 | 0 | 1 | 1 | |||||||||||||
Stock issues as part of rights offer (shares) | 69,470,442 | ||||||||||||||||||
Stock issues as part of rights offer | 2 | 1,664 | 0 | 0 | 0 | 0 | 1,666 | ||||||||||||
Stock issues as part of Golden Cycle acquisition (shares) | 3,181,198 | ||||||||||||||||||
Stock issues as part of Golden Cycle acquisition value | 0 | 118 | 0 | 0 | 0 | 0 | 118 | ||||||||||||
Stock issued in acquisition of Sao Bento funded by equity offerings (shares) | 2,701,660 | ||||||||||||||||||
Stock issues as part of Sao Bento acquisition value | 0 | 70 | 0 | 0 | 0 | 0 | 70 | ||||||||||||
Stock Issued During Period Shares Employee Stock Ownership Plan (shares) | 672,545 | ||||||||||||||||||
Stock Issued During Period v Employee Stock Ownership Plan | 0 | 14 | 0 | 0 | 0 | 0 | 14 | ||||||||||||
Stock Converted From One Class To Another Class Shares (shares) | 94 | ||||||||||||||||||
Stock Converted From One Class To Another Class Value | 0 | 3 | 0 | 0 | 0 | 0 | 3 | ||||||||||||
Stock Issued During Period Shares Stock Options Exercised (shares) | 57,761 | ||||||||||||||||||
Stock Issued During Period Value Stock Options Exercised | 0 | 2 | 0 | 0 | 0 | 0 | 2 | ||||||||||||
Stock based compensation expense | 24 | 0 | 0 | 0 | 0 | 24 | |||||||||||||
Dividends Cash | (41) | (17) | (58) | ||||||||||||||||
Closing balance at Dec. 31, 2008 | 12 | 7,502 | (1,148) | (3,044) | 0 | 84 | 3,406 | ||||||||||||
Closing balance (shares) at Dec. 31, 2008 | 352,627,761 | ||||||||||||||||||
Net loss | 0 | 0 | (825) | 0 | 48 | (777) | |||||||||||||
Other Comprehensive Income Foreign Currency Transaction And Translation Gain Loss Arising During Period Net Of Tax | 0 | 320 | 0 | 0 | 6 | 326 | |||||||||||||
Cash Flow Hedge Gain Loss Reclassified To Earnings Net | 0 | 97 | 0 | 0 | 1 | 98 | |||||||||||||
Other Comprehensive Income Unrealized Gain Loss On Derivatives Arising During Period Net Of Tax | 0 | (12) | 0 | 0 | 0 | (12) | |||||||||||||
Gain Loss On Cash Flow Hedge Ineffectiveness Net | 0 | 5 | 0 | 0 | 0 | 5 | |||||||||||||
Net loss on available-for-sale financial assets arising during the period, net of tax | 0 | 72 | 0 | 0 | 0 | 72 | |||||||||||||
Realized loss in earnings on available-for-sale financial assets during the period, net of tax | 0 | 12 | 0 | 0 | 0 | 12 | |||||||||||||
Other Comprehensive Income Loss Net Of Tax Period Increase Decrease | 501 | ||||||||||||||||||
Comprehensive Income Net Of Tax | (276) | ||||||||||||||||||
Share of capital transaction at equity accounted joint venture | 0 | 0 | 0 | 37 | 0 | 37 | |||||||||||||
Stock issues as part of equity offering value | 0 | 280 | 0 | 0 | 0 | 0 | 280 | ||||||||||||
Stock issued as part of equity offering (shares) | 7,624,162 | ||||||||||||||||||
Stock Issued During Period Shares Employee Stock Ownership Plan (shares) | 1,131,916 | ||||||||||||||||||
Stock Issued During Period v Employee Stock Ownership Plan | 0 | 25 | 0 | 0 | 0 | 0 | 25 | ||||||||||||
Stock Converted From One Class To Another Class Shares (shares) | 1,181 | ||||||||||||||||||
Stock Converted From One Class To Another Class Value | 0 | 3 | 0 | 0 | 0 | 0 | 3 | ||||||||||||
Stock Issued During Period Shares Stock Options Exercised (shares) | 189,787 | ||||||||||||||||||
Stock Issued During Period Value Stock Options Exercised | 0 | 7 | 0 | 0 | 0 | 0 | 7 | ||||||||||||
Stock based compensation expense | 19 | 0 | 0 | 0 | 0 | 19 | |||||||||||||
Dividends Cash | (45) | (11) | (56) | ||||||||||||||||
Closing balance at Dec. 31, 2009 | $12 | $7,836 | ($654) | [1] | ($3,914) | [2] | $37 | $128 | $3,445 | ||||||||||
Closing balance (shares) at Dec. 31, 2009 | 361,574,807 | ||||||||||||||||||
[1]The cumulative translation loss included in accumulated other comprehensive income amounted to $765 million (2008: $1,085 million). The translation loss has no tax effect. The cumulative charge, net of deferred taxation of $33 million (2008: $68 million), included in accumulated other comprehensive income in respect of cash flow hedges amounted to $22 million (2008: $112 million). The cumulative gain, net of deferred taxation of $3 million (2008: $1 million), included in accumulated other comprehensive income in respect of available for sale financial assets amounted to $69 million (2008: $15 million loss). The cumulative gain included in accumulated other comprehensive income in respect of the hedge of a net investment in foreign entities amounted to $64 million (2008: $64 million). This gain is offset by $64 million (2008: $64 million) arising from translation of net investments in foreign entities. | |||||||||||||||||||
[2]As at December 31, 2009 and 2008, $254 million and $453 million, respectively, of retained earnings arising from the Company's equity accounted joint ventures and certain subsidiaries may not be remitted without third-party shareholder consent. |
Nature of operations
Nature of operations (Deficit accumulated) | |
12 Months Ended
Dec. 31, 2009 | |
Nature Of Operations Abstract | |
Nature Of Operations | AngloGold Ashanti Limited (the "Company"), as it conducts business today, was formed on April26, 2004 following theBusinessCombination of AngloGold Limited (AngloGold) with Ashanti Goldfields Company Limited (Ashanti). AngloGold, formerly Vaal Reefs Exploration and Mining Company Limited, was incorporated in South Africa on May29,1944 and Ashanti was incorporated in Ghana on August 19, 1974. The Company conducts gold-mining operations in the following regions: Southern Africa (South Africa and Namibia); Continental Africa (Ghana, Guinea, Mali and Tanzania); Australasia (Australia); North America (United States of America) and South America (Argentina and Brazil). The Company also produces as by-product: silver, uranium oxide and sulfuric acid. |
Accounting Changes
Accounting Changes (Deficit accumulated) | |
12 Months Ended
Dec. 31, 2009 | |
Accounting Changes Abstract | |
Accounting Changes | Decreases in ownership of a subsidiary In January 2010, the Financial Accounting Standards Board ("FASB") updated the Accounting Standards Codification ("the Codification" or "ASC") guidance for decreases in ownership of a subsidiary to include additional disclosures required upon deconsolidation of a subsidiary. The amendments are effective beginning in the first interim or annual reporting period ending on or after December 15, 2009 and should be applied retrospectively to the first period in which the guidance on noncontrolling interests is adopted. The adoption had no impact on the Company's financial statements. The accounting standards codification In June2009, the FASB established the accounting standards codification to become the source of authoritative U.S. GAAP. The codification will supersede all non-SEC accounting and reporting standards. It is effective for interim and annual periods ending after September15, 2009. The adoption had no impact on the Company's financial statements, other than the references to authoritative U.S. GAAP. Subsequent events In May 2009, the FASB updated the ASC guidance for subsequent events to establish general standards of accounting for, and disclosure of, events that occur after the balance sheet date but before financial statements are issued or are available to be issued. In February 2010, the FASB amended the ASC guidance for subsequent events. As a result, SEC registrants will not disclose the date through which management evaluated subsequent events in the financial statements. This change for SEC registrants is effective immediately. The adoption had no impact on the Company's financial statements. Recognition and presentation of other-than-temporary impairments In April 2009, the FASB updated the ASC guidance for recognition and presentation of other-than-temporary impairments which: (i) clarifies the factors that should be considered when determining whether a debt security is other than temporarily impaired, (ii) provides guidance on the amount recognized of an other-than-temporary impairment and (iii) expands the disclosures required. It is effective for interim and annual reporting periods ending after June 15, 2009. See Note 16 for additional information. Interim disclosures about fair value of financial instruments In April 2009, the FASB updated the ASC guidance for interim disclosures about fair value of financial instruments which requires disclosures about fair value of financial instruments for interim reporting periods as well as in annual financial statements. It is effective for interim reporting periods ending after June 15, 2009. Except for presentation changes, the adoption had no impact on the Company's financial statements. Assets and liabilities from contingencies in business combinations In April 2009, the FASB updated the ASC guidance for accounting for assets acquired and liabilities assumed in a business combination that arise from contingencies. The guidance addresses issues raised on initial recognition and measurement, subsequent measurement and accounting and disclosure of assets and liabilities arising from contingencies in a business co |
Acquisitions and Disposals of B
Acquisitions and Disposals of Businesses and Assets (Deficit accumulated) | |
12 Months Ended
Dec. 31, 2009 | |
Acquisitions And Disposals Of Businesses And Assets Abstract | |
Acquisitions And Disposals Of Businesses And Assets | 2009 acquisitions The Company made the following acquisitions during the year: Acquisition of an effective 45 percent interest in the Kibali gold project With effect from December 22, 2009, AngloGold Ashanti and Randgold Resources Limited ("Randgold") each hold an effective 45 percent interest in the Kibali gold project (formerly the Moto gold project), while L'Office des Mines d'Or de Kilo-Moto ("OKIMO"), a Congolese parastatal, holds the remaining 10 percent stake, thereby maintaining the continued vested interest of the Government of the Democratic Republic of the Congo ("the DRC") in the Kibali gold project. The purchase price for the acquisition of AngloGold Ashanti's initial interest of 35 percent in the Kibali gold project was funded by an offering of 7,624,162 ordinary shares at an issue price of $37.25 per ADS (or R288.32 per ordinary share) which represented an approximate 3 percent discount to the closing price of its ADS on the NYSE on August 31, 2009. The offering closed on September 8, 2009 and AngloGold Ashanti received total gross proceeds, before underwriting discounts and expenses, of approximately $284 million. Total consideration for the effective 45 percent interest acquired in the Kibali gold project amounted to $345 million. Acquisition of an additional interest in Sadiola On December 29, 2009, AngloGold Ashanti, together with IAMGOLD Corporation purchased from the International Finance Corporation ("IFC"), the IFC's 6 percent stake in Socit d'Exploitation des Mines d'or de Sadiola ("SEMOS"), which owns the Sadiola Gold Mine for $12 million (AngloGold Ashanti's share being $6 million) to be followed by contingent payments not exceeding $3 million (of which AngloGold Ashanti's share is $1.5 million). This transaction has resulted in AngloGold Ashanti and IAMGOLD each increasing their respective interest in Sadiola from 38 percent to 41 percent. In addition, AngloGold Ashanti and IAMGOLD have extended an offer to the Government of the Republic of Mali to take up its proportionate entitlement of 19.15percent of the 6 percent sale interest, by acquiring an equal 0.574 percent interest in SEMOS from each. The Government of the Republic of Mali has advised the parties that they expect to confirm their intention by the end of June 2010. 2009 disposals The Company's disposals during the year included: Disposal of Boddington Gold Mine On January 28, 2009, AngloGold Ashanti announced that it had agreed to sell its 33.33 percent interest in the Boddington Gold Mine to Newmont Mining Corporation ("Newmont"). The transaction was completed on June26,2009. In terms of the agreement, the Company received payment of $750million in cash during June 2009 and a further $240million in December 2009. In addition, the Company is entitled to receive a royalty on any gold recovered or produced by the Boddington Gold Mine, where the gold price is in excess of Boddington Gold Mine's cash costs plus $600 per ounce. The royalty commences on July 1, 2010 and is capped at a total amount of $100million. All refunds and reimbursements between the Company and Newmont have been settled. Disposal of Tau Lekoa On February 17, 20 |
Summary of Significant Accounti
Summary of Significant Accounting Policies (Deficit accumulated) | |
12 Months Ended
Dec. 31, 2009 | |
Disclosure Summary Of Significant Accounting Policies Abstract | |
Significant Accounting Policies | Basis of presentation: The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America. The Company presents its consolidated financial statements in United States dollars. The functional currency of a significant portion of the group's operations is the South African rand. Other main subsidiaries have functional currencies of USdollars and Australian dollars. The translation of amounts into US dollars is in accordance with the FASB ASC guidance on foreign currency translation. Use of estimates: The preparation of the financial statements requires the Company's management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. The determination of estimates requires the exercise of judgment based on various assumptions and other factors such as historical experience, current and expected economic conditions, and in some cases actuarial techniques. The Company regularly reviews estimates and assumptions that affect the annual financial statements, however, actual results could differ from those estimates. The more significant areas requiring the use of management estimates and assumptions include mineral reserves that are the basis of future cash flow estimates and unit-of-production depreciation, depletion and amortization calculations; environmental, reclamation and closure obligations; estimates of recoverable gold and other materials in heap leach pads; asset impairments (including impairments of goodwill, long-lived assets, and investments); write-downs of inventory to net realizable value; post employment, post retirement and other employee benefit liabilities; valuation allowances for deferred taxation assets; reserves for contingencies and litigation; and the fair value and accounting treatment of financial instruments. Comparatives: The Company adopted the FASB ASC guidance on noncontrolling interests, effective January 1, 2009, which requires the noncontrolling interests to be classified as a separate component of net income and equity. The Company also reclassified the short-term portion relating to its post-retirements benefits of $13 million in the consolidated balance sheet as of December 31, 2008, from Provision for pension and other post-retirement medical benefits to Other current liabilities. The change was made to conform to the presentation in the consolidated balance sheet as of December 31, 2009. The following are the accounting policies used by the Company which have been consistently applied: 4.1 Consolidation The consolidated financial information includes the financial statements of the Company and its subsidiaries. Where the Company has a direct or indirect controlling interest in an entity through a subsidiary, the entity is classified as a subsidiary. Interests in incorporated mining joint ventures in which the Company has joint control are accounted for by the equity method. The financial statements of subs |
Costs and Expenses
Costs and Expenses (Deficit accumulated) | |
12 Months Ended
Dec. 31, 2009 | |
Costs and Expenses Abstract | |
Costs And Expenses | Employment severance costs Total employee severance costs amounted to $14million for 2009 (2008: $9 million, 2007:$19 million) and were due to retrenchments reflecting mainly downsizing and rationalization of operations in the Southern Africa and Continental Africa regions. Employee severance costs recorded in 2009, 2008 and 2007 included retrenchment costs of $10million, $9 million and $5million, respectively, in South Africa and $3million, $nilmillion and $14million, respectively, in Ghana (at Obuasi) due to a planned reduction in workforce. Interest expense 2009 2008 2007 $ $ $ Finance costs on bank loans and overdrafts 85 49 18 Finance costs on corporate bond (1) - 18 31 Finance costs on convertible bonds (2) 37 27 26 Capital lease charges 3 3 3 Discounting of non-current trade and other debtors 6 1 6 Other 5 4 1 136 102 85 Less : Amounts capitalized (3) (13) (30) (10) 123 72 75 (1) The unsecured corporate bond (issued on August 21, 2003) in the aggregate principal amount of R2 billion ($300 million) was repaid on August 28, 2008. (2) The $1.0 billion 2.375 percent convertible bond (issued February 27, 2004) was repaid on February 27, 2009. On May 22, 2009, AngloGold Ashanti Holdings Finance plc, a wholly-owned subsidiary of the Company, issued $732.5 million 3.5percent guaranteed convertible bonds due May 2014, convertible into ADSs and guaranteed by AngloGold Ashanti Limited. Refer to Note 20. (3) Interest capitalized on qualifying assets. Refer to Note13. Impairment of assets Impairments are made up as follows: 2009 2008 2007 $ $ $ Continental Africa Impairment and write-off of oxide treatment plant at Obuasi mine(1) 4 - - Impairment of goodwill held in Obuasi mine(2) - 104 - Impairment of abandoned shaft infrastructure and reserve power plant at Obuasi mine(3) - 15 - Impairment of reserve power plant at Iduapriem mine(3) - 3 - Impairment of goodwill held in Iduapriem mine(4) - 14 - Impairment of goodwill held in Geita mine(5) - 181 - Impairment of Geita mining assets(5) - 299 - Impairment of exploration assets in the DRC(6) - 29 - Impairment of obsolete heap leach plant infrastructure at Siguiri mine - 7 - Southern Africa Impairment of Tau Lekoa (held for sale). Refer to Note 17.(7) 4 - - Below 120 level at TauTona(8) - 16 - Other Impairment and write-off of various minor tangible assets and equipment - 2 1 8 670 1 (1) Due to damage suffered by the leach tanks of the treatment plant its use was discontinued in 2009. (2) In 2008, annual impairment testing for goodwill was performed for Obuasi and it was determined that its goodwill was fully impaired. The goodwill impairment was the result of factors such as the lower forward gold curve price, higher discount rates and a revised mine plan which incorporated changes in the cost of extraction due to the higher power costs experienced in Ghana. The reporting unit's fair value was determined using a real pre-tax discount rate of 9 percent. (3) The reserve power pl |
Related Party Transactions Disc
Related Party Transactions Disclosure (Deficit accumulated) | |
12 Months Ended
Dec. 31, 2009 | |
Related Party Transactions Abstract | |
Related Party Transactions | RELATED PARTY TRANSACTIONS As at December 31, 2008, Anglo American plc (AA plc) and its subsidiaries held an effective 16.17percent interest in AngloGold Ashanti. On March 17, 2009, AA plc disposed of its entire remaining shareholding in the Company. The Company had the following transactions with related parties during the years ended December31,2009,2008and 2007: December 31, 2009 December 31, 2008 December 31, 2007 Purchases (by)/from related party Amounts owed to/(by) related party Purchases (by)/from related party Amounts owed to/(by) related party Purchases (by)/from related party (in millions) $ $ $ $ $ Related party transactions of equity accounted joint ventures and associates AGA Polymetal Strategic Alliance - (3) - (3) - Margaret Water Company 1 - 1 - - Oro Group (Proprietary) Limited - (2) - (2) - Societe d'Exploitation des Mines d'Or de Sadiola S.A. (10) (3) (5) (2) (7) Societe d'Exploitation des Mines d'Or de Yatela S.A. (3) - (1) (1) (3) Societe des Mines de Morila S.A. (6) (1) (5) (1) (5) Trans-Siberian Gold plc - (1) - (1) (1) Orpheo (Proprietary) Limited - (1) - - - AuruMar (Proprietary) Limited - (2) - - - Amounts owed to/due by joint venture related parties are unsecured, non-interest bearing and under terms that are no less favorable than those with third parties. The loan balance due to Goldmed Medical Scheme of $1million as of December 31, 2008, was repaid during 2009. The AGA-Polymetal Strategic Alliance (joint venture) loan of $3 million advanced during 2008, is interest free and is repayable on demand at any time after profits have been generated by the joint venture. The Oro Group (Proprietary) Limited loan of $2million (2008: $2million) bears interest at a rate determined by the Oro Group (Proprietary) Limited's board of directors and is repayable at their discretion. The AuruMar (Proprietary) Limited loan of $2million (2008: $nil million) is unsecured, interest free and there are no fixed terms of repayment. The Orpheo (Proprietary) Limited loan of $1 million (2008: $nil million) is unsecured, interest free and there are no fixed terms of repayment. The Company, which holds an equity interest of 29.7percent (2008: 29.7percent) in Trans-Siberian Gold plc (TSG), entered into a transaction during the quarter ended June 30,2007 with TSG in which two companies were acquired from TSG for a consideration of $40million. The companies acquired consist of Amikan and ASAPK. In connection with the relocation of Roberto Carvalho Silva, a former executive director of the Company who retired in 2007, to NovaLima, Brazil, in 2000, Mr. Carvalho Silva commenced renting a house in Nova Lima from a Brazilian subsidiary of the Company. Mr. Carvalho Silva purchased the house from the Company's subsidiary in January 2005. The total purchase price of the house was BRL1,150,000 ($429,923). Mr. Carvalho agreed to pay the purchase price of the house in 60installments, the first being BRL19,167.70 and 59 installments of BRL19,166.65 each, starting on January28,2005. Such monthly installments were |
Income Tax
Income Tax (Deficit accumulated) | |
12 Months Ended
Dec. 31, 2009 | |
Income Tax Abstract | |
Income Tax | 2009 2008 2007 $ $ $ (Loss)/income from continuing operations before income tax and equity income in affiliates was derived from the following jurisdictions: Southern Africa (337) 249 (35) Continental Africa (252) (712) (691) Australasia (147) (69) 81 North America (70) 127 (93) South America 51 73 77 Other, including Corporate and Non-gold producing subsidiaries(1) (143) (41) (50) (898) (373) (711) (1) The increase in the loss from 2008 is due to the additional finance charges on the Term Facility and exploration expenses in 2009. (Charge)/benefit for income taxes attributable to continuing operations is as follows: Current: Southern Africa(1) (37) (26) (99) Continental Africa(2) (37) (26) (5) Australasia(3) (34) 3 (37) North America 2 0 (1) South America(4) (56) (34) (48) Other (4) (11) (1) Total current (166) (94) (191) (1) The increase in the tax charge in 2009 is mainly due to higher income as a result of the higher gold price. The reduction in the tax charge in 2008 mainly related to the tax benefit on losses relating to the settlement of non-hedge derivative contracts. The high taxation charge in 2007 partly related to higher earnings arising from the higher gold price. (2) Siguiri has utilized the historic assessed losses and unredeemed capital allowances brought forward assisted by the improved grade and plant utilization which resulted in taxable income in 2009 and 2008. (3) The increase in the tax charge in 2009 is mainly due to capital gains tax on the sale of the Boddington Gold Mine. In 2008, Sunrise Dams taxable income reduced considerably following the completion of the mining in the megapit during the year. (4) Increase in tax charge in 2009 mainly relates to higher earnings due to the improved gold price. Deferred: Southern Africa 135 (41) 53 Continental Africa 33 123 37 Australasia 49 (4) 10 North America - - - South America (18) (16) (21) Other - 10 (6) Total deferred 199 72 73 Total income and mining tax benefit/(expense) 33 (22) (118) (1) Mining tax on mining income in South Africa is determined according to a formula which adjusts the tax rate in accordance with the ratio of profit to revenue from operations. This formula also allows an initial portion of mining income to be free of tax. Non-mining income is taxed at a standard rate. Estimated deferred taxation rates reflect the future anticipated taxation rates at the time temporary differences reverse. During 2009, 2008 and 2007, deferred taxation was provided at a future anticipated taxation rate ranging between 36 percent and 39 percent for 2009, 36 percent and 38 percent for 2008, and in 2007 at 39 percent and 37 percent, respectively. The increase in deferred tax credits in 2009 is mainly due to unrealized non-hedge derivative losses arising from an improved gold price and the remaining NPSE contracts being re-designated as non-hedge derivatives and recorded on the balance sheet, following the hedge buy-back |
Discontinued Operations
Discontinued Operations (Deficit accumulated) | |
12 Months Ended
Dec. 31, 2009 | |
Discontinued Operations Abstract | |
Discontinued Operations | The Ergo reclamation surface operation, which formed part of the Southern Africa region, had been discontinued as the operation had reached the end of its useful life and the assets were no longer in use. The pre-tax gain on disposal of $27 million recorded in 2008 related to the remaining assets of Ergo, that were sold by the Company to ERGO Mining (Pty) Limited a joint venture between Mintails South Africa (Pty) Limited and DRD South African Operations (Pty) Limited. The results of Ergo for the years ended December31, 2008 and 2007, are summarized as follows: 2008 2007 $ (cents)(1)(3) (cents)(2)(3) $ (cents)(1)(3) (cents)(2)(3) Revenue - - - 1 - - Costs, expenses and recoveries 1 - - 5 2 1 Gain on disposal 27 8 5 - - - Pre-tax profit 28 8 5 6 2 1 Taxation (5) (1) (1) (4) (1) (1) Net profit attributable to discontinued operations 23 7 4 2 1 - (1) Per basic and diluted ordinary shares (2) Per basic and diluted E ordinary shares. (3) Basic and diluted earnings/(loss) per common share. The calculation of diluted earnings/(loss) per common share for 2008 and 2007 did not assume the effect of 15,384,615 shares, issuable upon the exercise of convertible bonds as their effects are anti-dilutive. The calculation of diluted earnings/(loss) per common share for 2008 and 2007 did not assume the effect of 872,373 and 575,316 shares, respectively, issuable upon the exercise of stock incentive options as their effects are anti-dilutive. The calculation of diluted earnings/(loss) per common share for 2008 and 2007 did not assume the effect of conversion of E Ordinary shares as the Company recorded a loss from continuing operations during these periods. |
Earnings Per Share
Earnings Per Share (Deficit accumulated) | |
12 Months Ended
Dec. 31, 2009 | |
Earnings Per Share | |
Earnings Per Share | 2009 2008 2007 $ $ $ The following table sets forth the computation of basic and diluted loss per share (in millions, except per share data): Numerator (825) (586) (816) Net loss - attributable to AngloGold Ashanti Loss from continuing operations Discontinued operations - 23 2 Net loss (825) (563) (814) Less Dividends: Ordinary shares 45 41 124 E Ordinary shares - - 1 Undistributed losses (870) (604) (939) Ordinary shares undistributed losses (865) (600) (932) E Ordinary shares undistributed losses (5) (4) (7) Total undistributed losses (870) (604) (939) Denominator for basic loss per ordinary share Ordinary shares 356,563,773 312,610,124 276,805,309 Fully vested options(1) 791,353 547,460 531,983 Weighted average number of ordinary shares 357,355,126 313,157,584 277,337,292 Effect of dilutive potential ordinary shares Dilutive potential of stock incentive options(2) - - - Dilutive potential of convertible bonds(3) - - - Dilutive potential of E Ordinary shares(4) - - - Denominator for diluted loss per share adjusted weighted average number of ordinary shares and assumed conversions 357,355,126 313,157,584 277,337,292 Weighted average number of E Ordinary shares used in calculation of basic and diluted loss per E Ordinary share 3,873,169 4,046,364 4,117,815 Loss per share attributable to AngloGold Ashanti common stockholders (cents) From continuing operations Ordinary shares (230) (186) (293) E Ordinary shares (115) (93) (146) Ordinary shares diluted (230) (186) (293) E Ordinary shares diluted (115) (93) (146) Discontinued operations Ordinary shares - 7 1 E Ordinary shares - 4 - Ordinary shares diluted - 7 1 E Ordinary shares diluted - 4 - Net loss Ordinary shares (230) (179) (292) E Ordinary shares (115) (89) (146) Ordinary shares diluted (230) (179) (292) E Ordinary shares diluted (115) (89) (146) (1) Compensation awards are included in the calculation of basic loss per common share from when the necessary conditions have been met, and it is virtually certain that shares will be issued as a result of employees exercising their options. (2) The calculation of diluted loss per common share for 2009, 2008 and 2007 did not assume the effect of 1,234,858, 872,373 and 575,316 shares, respectively, issuable upon the exercise of stock incentive options as their effects are anti-dilutive. (3) The calculation of diluted loss per common share for 2009, 2008 and 2007 did not assume the effect of 15,384,615 shares issuable upon the exercise of Convertible Bonds as their effects are anti-dilutive. (4) The calculation of diluted loss per common share for 2009, 2008 and 2007 did not assume the effect of conversion of E Ordinary shares as the Company recorded a loss from continuing operations during these periods. |
Cash and Cash Equivalents
Cash and Cash Equivalents (Deficit accumulated) | |
12 Months Ended
Dec. 31, 2009 | |
Cash and Cash Equivalents Abstract | |
Restricted Cash | 2009 2008 $ $ Cash classified as restricted for use comprise of the following: Cash restricted by prudential solvency requirements 8 9 Cash balances held by the Environmental Rehabilitation Trust Funds 53 34 Cash balances held by the Tropicana project 3 - Other 1 1 65 44 |
Other Receivables
Other Receivables (Deficit accumulated) | |
12 Months Ended
Dec. 31, 2009 | |
Disclosure Other Receivables Abstract | |
Other Receivables | 2009 2008 $ $ Trade debtors are net of: Provision for doubtful debt 12 1 Other receivables include: Prepayments and accrued income 52 107 Interest receivable 2 1 Other debtors 20 9 74 117 |
Inventories
Inventories (Deficit accumulated) | |
12 Months Ended
Dec. 31, 2009 | |
Inventory | |
Inventories | Short-term: Gold in process 115 118 Gold on hand (dor/bullion) 75 37 Ore stockpiles 227 182 Uranium oxide and sulfuric acid 34 24 Supplies 252 240 703 601 Less: Heap leach inventory (40) (49) 663 552 (1) Short-term portion relating to heap leach inventory classified separately, as materials on the leach pad. Long-term: Gold in process 324 261 Ore stockpiles 25 39 Supplies 1 1 350 301 Less: Heap leach inventory (324) (261) 26 40 (1) Long-term portion relating to heap leach inventory classified separately, as materials on the leach pad. The Company recorded aggregate write-downs of $48million, $60million and $37million for the years ended December 31, 2009, 2008 and 2007, respectively, to reduce the carrying value of inventories to net realizable value. Inventory write-downs are included in production costs. |
Property, Plant and Equipment,
Property, Plant and Equipment, Net (Deficit accumulated) | |
12 Months Ended
Dec. 31, 2009 | |
Property, Plant and Equipment, Net Abstract | |
Property Plant And Equipment | Mine development 5,604 4,543 Buildings and mine infrastructure 2,957 2,497 Mineral rights and other 1,053 1,032 Assets under construction 251 229 Land 30 25 9,895 8,326 Accumulated depreciation, depletion and amortization (4,441) (3,561) Net book value December 31, 5,454 4,765 (1) Includes interest capitalized of $nil million (2008: $4million). Refer to Note5. (2) Includes interest capitalized of $13million (2008: $26million). Refer to Note5. Mining assets with a net book value of $50million (2008: $27 million) are encumbered by capital leases. Refer to Note 20. |
Acquired Properties, Net
Acquired Properties, Net (Deficit accumulated) | |
12 Months Ended
Dec. 31, 2009 | |
Acquired Properties Net Abstract | |
Acquired Properties | Acquired properties, at cost 2,053 1,868 Accumulated amortization (1,222) (1,054) Net book value December 31, 831 814 |
Goodwill and Other Intangibles
Goodwill and Other Intangibles (Deficit accumulated) | |
12 Months Ended
Dec. 31, 2009 | |
Goodwill And Other Intangibles Abstract | |
Goodwill And Other Intangible Assets | Goodwill The carrying amount of goodwill by reporting unit as of December 31, 2009 and 2008 and changes in the carrying amount of goodwill are summarized as follows: North America Australasia Continental Africa Guinea Southern Africa Tanzania Total $ $ $ $ $ $ $ Balance at January 1, 2008 - 259 309 - 1 - 569 Golden Cycle Gold Corporation acquisition 18 - - - - - 18 Transferred to assets held for sale - (103) - - - - (103) Impairment losses - - (299) - - - (299) Translation - (53) - - - - (53) Balance at December 31, 2008 18 103 10 - 1 - 132 Translation - 30 - - - - 30 Balance at December 31, 2009 18 133 10 - 1 - 162 (1) Purchase price allocation for acquisition of remaining 33percent shareholding in Cripple Creek Victor Gold Mining Company, acquired effective July1,2008. (2) Goodwill of Boddington mine reclassified as held for sale during 2008. Refer to Note 17. (3) During 2008, the Company recorded goodwill impairment losses for Obuasi ($104million), Iduapriem ($14million) and Geita ($181million), respectively. Refer to "Note 5 Costs and expenses: Impairment of assets". 2009 2008 $ $ Other intangibles, net Royalty rate concession agreement Gross carrying value 29 29 Accumulated amortization (11) (9) 18 20 (1) The government of Ghana agreed to a concession on royalty payments at a fixed rate of 3percent per year for a period of fifteen years from 2004. The royalty rate concession is amortized on a straight line basis with nil residual value. Amortization expense included in the consolidated statements of income amounted to $2 million for 2009 (2008: $2 million and $2007: $2 million). 2009 $ Based on carrying value at December 31, 2009, the estimated aggregate amortization expense for each of the next five years is as follows: 2010 2 2011 2 2012 2 2013 2 2014 2 |
Other assets noncurrent
Other assets noncurrent (Deficit accumulated) | |
12 Months Ended
Dec. 31, 2009 | |
Other assets noncurrent Abstract | |
Other Long-Term Assets | 2009 2008 $ $ Investments in affiliates unlisted 6 4 Investments in affiliates listed 2 5 Investments in equity accounted joint ventures 659 272 Carrying value of equity method investments 667 281 Investment in marketable equity securities available for sale 111 26 Investment in marketable debt securities held to maturity 10 11 Investment in non-marketable assets held to maturity 2 3 Investment in non-marketable equity securities available for sale 4 - Investment in non-marketable debt securities held to maturity 48 35 Other non-current assets 127 65 969 421 Investments in affiliates December 31, December 31, 2009 2008 percentage held percentage held Unlisted Oro Group (Proprietary) Limited(1) 25.00 25.00 Margaret Water Company 33.33 33.33 Orpheo (Proprietary) Limited 33.33 0.00 Wonder Wise Holdings Limited 25.00 0.00 Listed Trans-Siberian Gold plc(1)(2)(3) 29.74 29.74 (1) Results are included for the twelve months ended September 30, 2009, adjusted for material transactions. (2) At December 31, 2009, the market value of the Company's investment in Trans-Siberian Gold plc was $12 million (2008: $5 million). (3) During the years ended December 31, 2009, 2008 and 2007 the Company recorded impairment losses of $nil million, $8 million and $14 million, respectively, on its investment. Investments in equity accounted joint ventures The Company holds the following interests in incorporated mining joint ventures, of which the significant financial operating policies are, by contractual arrangement, jointly controlled: December 31, December 31, 2009 2008 percentage held percentage held Sadiola(1) 41.00 38.00 Morila 40.00 40.00 Yatela 40.00 40.00 AGA - Polymetal Strategic Alliance(2) 50.00 50.00 Kibali Goldmines s.p.r.l.(3) 45.00 - AuruMar (Proprietary) Limited 50.00 - (1) The Company increased its holding in Sadiola from 38 percent to 41 percent, effective December 29, 2009. (2) Results are included for the twelve months ended September 30, 2009, adjusted for material transactions. The AGA-Polymetal Strategic Alliance consists of the AGA-Polymetal Strategic Alliance Management Company, Amikan Holdings Limited ("Amikan"), AS APK Holdings Limited, Imizoloto Holdings Limited and Yeniseiskaya Holdings Limited. (3) The Company acquired an effective 45 percent holding in Kibali Goldmines during 2009. 2009 2008 $ $ Effective December 2, 2009, AngloGold Ashanti Holdings plc, a wholly owned subsidiary, entered into a memorandum of understanding with Polyholding Limited relating to the disposal of Amikan. Amikan holds mining and exploration interests in Russia. Completion is expected to occur on or before April 30, 2010. The Company recorded an impairment loss of $9 million (net of tax of $nil million) on Amikan to reduce the carrying amount of the investment to fair value. The impairment loss is reflected in equity income in affiliates for 2009. During 2008, the Company recorded an impairment loss of $42million (net of tax of $6 million) relating to its |
Assets Held For Sale
Assets Held For Sale (Deficit accumulated) | |
12 Months Ended
Dec. 31, 2009 | |
Assets Held For Sale Abstract | |
Assets Held For Sale | 2009 2008 $ $ Effective February 17, 2009, the interest in the Tau Lekoa mine together with the adjacent Weltevreden, Jonkerskraal and Goedgenoeg project areas (Tau Lekoa) in South Africa was classified as held for sale. Tau Lekoa was previously recognized as a combination of tangible assets, current assets and current and long-term liabilities. The Company has agreed to sell Tau Lekoa, subject to conditions precedent usual to a transaction of this nature, to Simmer and Jack Mines Limited (Simmers). Purchase consideration consists of two components: an initial cash payment or combination of cash payment and Simmers shares together with future royalty payments. The effective date will occur on the later of January 1, 2010, or the first day in the calendar month following the fulfillment of all conditions precedent to the transaction. The Company will continue to operate Tau Lekoa until the effective date with appropriate joint management arrangements with Simmers. Following the effective date of the disposal, Simmers will treat all ore produced from the assets at its own processing facilities. As a result, AngloGold Ashanti will have increased processing capacity available at its Vaal River plants, allowing for the processing of additional material from its surface sources and the other Vaal River mines. The additional treatment capacity will ensure significant continuing direct cash flows from the same gold commodity in an active market. Consequently, due to the migration of cash flows and in accordance with the FASB ASC guidance on discontinued operations, Tau Lekoa is not classified as a discontinued operation. During 2009, an impairment loss of $4 million was recognized in earnings to reduce the carrying amount of Tau Lekoa to fair value less costs to sell. Refer to "Note 5 Costs and expenses: Impairment of assets". At December 31, 2008, net assets for Tau Lekoa amounted to $46 million. 64 - Effective December 2007, Rand Refinery Limited in South Africa (a subsidiary of the Company) transferred parts of its premises that were no longer utilized (previously recognized as a tangible asset), to held for sale. On April1, 2008, a sale agreement was concluded subject to achievement of the suspensive condition regarding rezoning of the land and transfer of title deeds. Rand Refinery Limited currently awaits the rezoning transfer notification from the municipal and deeds office in order to conclude the sales transaction. 1 1 Effective December 31, 2008, the 33.33 percent interest in the unincorporated joint venture in Boddington Gold Mine in Australia was classified as held for sale. The interest in Boddington Gold Mine was previously recognized as a combination of tangible assets, goodwill, current assets and current and long-term liabilities. The Company agreed to sell the 33.33 percent interest, subject to conditions precedent, to Newmont Mining Corporation. On June 26, 2009, the Company announced that the sale had been completed in accordance with the sale agreement with all conditions precedent being met. A profit on disposal of $56 million was realized on the sale of Boddington. Refer to |
Other Current Liabilities
Other Current Liabilities (Deficit accumulated) | |
12 Months Ended
Dec. 31, 2009 | |
Other Current Liabilities Abstract | |
Other Current Liabilities | Deferred income 13 5 Deferred taxation. Refer to Note 7. 8 24 Pension and other post-retirement medical benefits. Refer to Note 27. 14 13 Accrual for power 18 24 Other (including accrued liabilities) 67 43 Unearned premiums - 27 $1.0 billion term facility fee accrual - 21 120 157 |
Other Non-Current Liabilities
Other Non-Current Liabilities (Deficit accumulated) | |
12 Months Ended
Dec. 31, 2009 | |
Other Liabilities, Non-Current Abstract | |
Other Non-Current Liabilities | Deferred income 5 7 Taxation. Refer to Note 7. 149 106 Other creditors 9 4 163 117 |
Long-Term Debt
Long-Term Debt (Deficit accumulated) | |
12 Months Ended
Dec. 31, 2009 | |
Long-Term Debt Abstract | |
Long Term Debt | LONG-TERM DEBT 2009 2008 $ $ Unsecured Syndicated loan facility ($1,150 million) - Drawn down in US and Australian dollars(1) 1,025 842 Interest charged at LIBOR plus 0.4 percent per annum. Loan is repayable in December 2010 and is US dollar-based. The loan is subject to debt covenant arrangements for which no default event occurred. 3.5 % Convertible bonds(2) 609 - Fixed semi-annual coupon of 3.5 percent per annum. The bonds are convertible, at the holders option, into ADSs up to May 2014 and are US dollar-based. The bonds are convertible at an initial conversion price of $47.6126 per ADS. 2.375 % Convertible bonds(3) - 1,008 Fixed semi-annual coupon of 2.375 percent per annum. The bonds were convertible, at the holders option, into ADSs up to February 2009 and were US dollar-based. The bonds were convertible at a price of $65.00 per ADS. The bonds matured and were repaid on February 27, 2009. 2009 Term Facility(4) 252 - Interest is charged at a margin of 4.25 percent per annum over the higher of the applicable LIBOR and the lenders' cost of funds (subject to a cap of LIBOR plus 1.25 percent per annum). Loan is repayable on August 24, 2010 (extendable, if required, at the option of the Company until August 24, 2011) and is US dollar-based. Santander Banespa 8 11 Interest is charged at LIBOR plus 1.45 percent per annum. Loan is repayable in quarterly installments terminating in September 2011 and is US dollar-based. Santander Banespa 6 - Interest is charged at 6 percent per annum. Loans are repayable in monthly installments terminating in November 2013 and April 2014 and are Brazilian real-based. Various US dollar-based loans and overdrafts with interest rates ranging from 3.72 percent per annum to 8.69 percent per annum were repaid during 2009. - 48 Secured Capital leases Turbine Square Two (Proprietary) Limited(5) 35 27 The leases are capitalized at an implied interest rate of 9.8percent per annum. Lease payments are due in monthly installments terminating in March 2022 and are ZAR-based. The buildings financed are used as security for these loans. Refer to Note13. Caterpillar Financial Services Corporation(6) 16 - Interest charged at an average rate of 5.46percent per annum. Loans are repayable in monthly installments terminating in December 2014 and are USdollar-based. The equipment financed is used as security for these loans. Refer to Note13. 2009 2008 $ $ Mazuma Capital Corporation 7 0 Interest charged at an average rate of 5.6percent per annum. Loans are repayable in monthly installments terminating in November 2012 and are US dollar-based. The equipment financed is used as security for these loans. Refer to Note 13. Senstar Capital Corporation 0 3 Interest was charged at a weighted average rate of 6.6percent per annum. Loans were repaid in monthly installments terminating in December 2009 and were USdollar-based. The equipment financed was used as security for these loans. Refer to Note13. CSI Latina Arrendamento Mercantil S.A. 1 1 Interest charged at a rate of 6.74pe |
Provision for Environmental Reh
Provision for Environmental Rehabilitation (Deficit accumulated) | |
12 Months Ended
Dec. 31, 2009 | |
Mine Reclamation and Closing Liability Abstract | |
Provision for Environmental Rehabilitation | 21. PROVISION FOR ENVIRONMENTAL REHABILITATION 2009 2008 $ $ Accrued environmental rehabilitation costs 385 302 Long-term environmental obligations comprising decommissioning and restoration are based on the Company's environmental management plans, in compliance with the current environmental and regulatory requirements. Decommissioning costs The provision for decommissioning represents the cost that will arise from rectifying damage caused from establishing mining operations. Decommissioning costs, representing obligations associated with the retirement of long-lived assets that result from the acquisition, construction or normal operations of long-lived assets, are accounted for in accordance with the FASB ASC guidance on asset retirement and environmental obligations. Decommissioning costs are further described in Note 5 Asset retirement obligations. Restoration costs While the ultimate amount of rehabilitation is uncertain, the Company has estimated that the total cost for mine rehabilitation and closure, on an undiscounted basis, will be $2,184million which includes a total estimated liability of $93million in respect of equity accounted joint ventures. Refer to Note16. AngloGold Ashanti USA has posted reclamation bonds with various federal and governmental agencies to cover environmental rehabilitation obligations. Refer to Note22. The Company intends to finance the ultimate rehabilitation costs from the monies invested with the rehabilitation trust fund, the environmental protection bond as well as the proceeds on sale of assets and gold from plant clean-up at the time of mine closure. |
Commitments and Contingencies
Commitments and Contingencies (Deficit accumulated) | |
12 Months Ended
Dec. 31, 2009 | |
Commitments and Contingencies Abstract | |
Commitments And Contingencies Disclosure | 2009 2008 $ $ Capital expenditure commitments(1) Contracts for capital expenditure 131 82 Authorized by the directors but not yet contracted for 1,683 632 1,814 714 Allocated for: Project expenditure - within one year 264 252 - thereafter 594 70 858 322 Stay in business expenditure - within one year 705 349 - thereafter 251 43 956 392 (1) Including commitments of $6 million (2008: $11 million) through contractual arrangements by equity accounted joint ventures. Other contractual purchase obligations(2) - within one year 346 289 - thereafter 96 396 442 685 (2) Other purchase obligations represent contractual obligations for the purchase of mining contract services, power, supplies, consumables, inventories, explosives and activated carbon. Amounts exclude purchase obligations of equity accounted joint ventures. Summary of contracted uranium sales as at December 31, 2009 The Company had the following forward pricing uranium commitments: Year lbs (000)(1) Average contracted price ($/lbs) 2010 494 34.20 2011 494 35.06 2012 2013 988 36.38 (1) Certain contracts allow the buyer to adjust the purchase quantity within a specified range. 2009$ 2008 $ Contingencies Groundwater pollution South Africa 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 since 2002 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 modeling 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. Deep ground water pollution South Africa 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 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. Sales tax on gold deliveries Brazil 76 55 Minerao Serra Grande S.A. ("MSG"), received two tax assessments from t |
Fair Value Measurements
Fair Value Measurements (Deficit accumulated) | |
12 Months Ended
Dec. 31, 2009 | |
Fair Value Measurements | |
Fair Value Measurements | The Company adopted the updated FASB ASC guidance on fair value measurements and disclosures for the Company's non-financial assets and non-financial liabilities measured at fair value on a non-recurring basis as of January1, 2009, with no material impact on the Company's financials. During the third quarter of 2009, the Company fully impaired the oxide treatment plant at Obuasi. See "Note 5 Costs and expenses: Impairment of assets" for additional information. During the current year the Company transferred certain assets to "held for sale" and accordingly measured them at fair value less estimated costs to sell. Refer toNote17. During 2009, the Company also measured certain investments in equity accounted joint ventures at fair value. Refer toNote16. An impairment loss on the investment in B2Gold of $12million was recognized in the third quarter of 2009 in the income statement. See "Note 5 Costs and expenses: Loss/(profit) on sale of assets, realization of loans, indirect taxes and other" for additional information. Since the third quarter, the fair value of B2Gold has increased and an unrealized gain of $21 million pertaining to the investment is included in accumulated other comprehensive income as of December 31, 2009. The FASB ASC guidance establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value: Level 1-Quoted prices in active markets for identical assets or liabilities. Level 2-Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3-Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The Company utilizes the market approach to measure fair value.The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. The following table sets out the Company's financial assets and (liabilities) measured on a recurring basis at fair value, by level within the hierarchy as at December 31, 2009 (in US Dollars, millions): Items measured at fair value on a recurring basis Description Level 1 Level 2 Level 3 Total Cash and cash equivalents 1,100 1,100 Marketable equity securities 111 111 Derivatives, net (2,195) (2,195) Embedded derivative (1) (1) Warrants on shares 5 5 Option component of convertible bonds (175) (175) The Company's cash equivalents are classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices. The cash instruments that are valued based on quoted market prices in active markets are primarily money market securities. Due to the short maturity of cash, carrying amounts approximate fair values |
Financial Risk Management Activ
Financial Risk Management Activities (Deficit accumulated) | |
12 Months Ended
Dec. 31, 2009 | |
Financial Risk Management Activities | |
Financial Risk Management Activities | In the normal course of its operations, the Company is exposed to gold and other commodity price, currency, interest rate, equity price, liquidity and non-performance risk, which includes credit risk. The Company is also exposed to certain by-product commodity price risk. In order to manage these risks, the Company enters into derivative transactions and has developed a 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, counterpart limits, controlling and reporting structures. The Company does not acquire, hold or issue derivatives for trading purposes. Although all derivative transactions executed by the Company serve to economically manage the Company's risk to the market factors discussed above, not all such derivatives qualify for hedge accounting treatment, including instances whereby management has elected to not designate such derivatives as part of a qualifying hedge accounting relationship. The financial risk management activities objectives of the Company are as follows: Safeguarding the Company's core earnings stream through the effective control and management of gold and other commodity price risk, foreign exchange risk and interest rate risk; Effective and efficient usage of credit facilities through the adoption of liquidity planning procedures; Ensuring that investment and hedging transactions are undertaken with creditworthy counterparts; and Ensuring that contracts and agreements related to risk management activities are coordinated, consistent throughout the Company and comply where necessary with relevant regulatory and statutory requirements. A number of products, including derivatives are used to satisfy these objectives. Contracts that meet the criteria for hedge accounting are designated as the hedging instruments hedging the variability of forecasted cash flows from the sale of production into the spot market and from capital expenditure denominated in a foreign currency and are classified as cash flow hedges under the FASB ASC guidance on derivatives and hedging. Cash flows related to these instruments designated as qualifying hedges are reflected in the consolidated statement of cash flows in the same category as the cash flow from the items being hedged. Accordingly, cash flows relating to the settlement of forward sale commodity derivatives contracts hedging the forecasted sale of production into the spot market as well as the forward sale currency derivative contracts hedging the forecasted capital expenditure, have been reflected upon settlement as a component of operating cash flows. The ineffective portion of matured and existing cash flow hedges recognized in loss on non-hedge derivatives in the income statement during the year was $5million (2008: $8million; 2007: $10 million). Of the contracts accounted for as cash flow hedges, contracts with a fair value of $37million (2008: $123million; 2007: $194million), a liability at December31,2009 are expected to be reclassified from accumulated other comprehensive income and recognized as a reduction in product sales or as an adj |
Additional Cash Flow Informatio
Additional Cash Flow Information (Deficit accumulated) | |
12 Months Ended
Dec. 31, 2009 | |
Additional Cash Flow Information | |
Additional Cash Flow Information | 2009 $ 2008 $ 2007 $ Reported in the statements of consolidated cash flows: Interest paid 111 93 71 Taxation paid 147 125 180 Non-cash items not reported in the statements of consolidated cash flows: Shares issued to acquire Golden Cycle Gold Corporation - 118 - Shares issued to acquire So Bento Gold Company Limited - 70 - Exercise of share entitlements 20 16 7 Foreign exchange transaction gain/(loss)(1) 103 7 (10) (1) Foreign exchange transaction gain/(loss) included in Interest, dividends and other amounts to $112 million (2008: $4 million and 2007: $(1) million). |
Provision for Pension and Other
Provision for Pension and Other Post-Retirement Medical Benefits (Deficit accumulated) | |
12 Months Ended
Dec. 31, 2009 | |
Provision for Pension and Other Post-Retirement Medical Benefits Abstract | |
Provision for Pension and Other Post-Retirement Medical Benefits | The provision for pension and post-retirement medical funding represents the provision for health care and pension benefits for employees, retired employees and their dependants. Defined benefit plans The retirement schemes as at December 31, 2009, 2008 and 2007, consists of the following which reflects the following provision values: 2009 2008 2007 $ $ $ AngloGold Ashanti Pension Fund (asset)/liability (5) 11 (36) Post Retirement medical scheme for AngloGold Ashanti South African employees 149 115 168 Other defined benefit plans 10 11 9 Sub Total 154 137 141 Transferred to other non-current assets AngloGold Ashanti Pension Fund 5 - 36 Post-retirement medical scheme for Rand Refinery employees 2 2 3 Short-term portion transferred to other current liabilities (14) (13) (13) Total Provision 147 126 167 South Africa defined benefit pension fund The plan is evaluated by independent actuaries on an annual basis as at December 31. The valuation as at December31,2009 was completed at the beginning of 2010. The previous statutory valuation had an effective date of December 31, 2005, and was completed in June 2006. The statutory valuation effective December 31, 2008 is in the process of being finalized and will be submitted to the Registrar of Pension Funds during the first half of 2010. The next statutory valuation will have an effective date no later than December31,2011. The accumulated benefit obligation at December31,2009 is $230million. All South African pension funds are governed by the Pension Funds Act of 1956 as amended. Information with respect to the defined benefit fund, which includes benefits for AngloGold Ashanti employees, for the year ended December 31, is set forth in the table below: Pension benefits 2009 2008 2007 $ $ $ Change in benefit obligation Benefit obligation at January 1, 199 257 224 Service cost 6 6 7 Interest cost 16 17 18 Plan participants contributions 2 2 2 Actuarial (gain)/loss (2) 16 11 Increase as a result of transfers into the fund - - 1 Benefits paid (8) (24) (12) Translation 56 (75) 6 Benefit obligation at December 31, 269 199 257 Change in plan assets Fair value of plan assets at January 1, 188 293 262 Actual return on plan assets 32 (7) 27 Company contributions 5 5 6 Plan participants contributions 2 2 2 Increase as a result of transfers into the fund - - 1 Benefits paid (8) (24) (12) Translation 55 (81) 7 Fair value of plan assets at December 31, 274 188 293 Funded status at end of year 5 (11) 36 Net amount recognized 5 (11) 36 Components of net periodic benefit cost Service cost 6 6 7 Interest cost 16 17 18 Actuarial gains and losses (14) 49 12 Expected return on assets (20) (26) (28) Net periodic benefit cost (12) 46 9 Assumptions Weighted-average assumptions used to determine benefit obligations at December 31, Discount rate 9.25% 7.25% 8.25% Rate of compensation incr |
Segment and Geographical Inform
Segment and Geographical Information (Deficit accumulated) | |
12 Months Ended
Dec. 31, 2009 | |
Segment and Geographical Information | |
Segment and Geographical Information | The Company produces gold as its primary product and does not have distinct divisional segments in terms of principal business activity, but manages its business on the basis of different geographic segments. During 2009, the Company's Chief Operating Decision Maker, defined as the Executive Management team, changed the basis of segment reporting as a result of a re-alignment of the management reporting structure. Individual members of the Executive Management team are responsible for geographic regions of the business. Where applicable, the corresponding items of segment information for prior periods presented have been restated to reflect this. Business segment data Year ended December 31 2009 2008 2007 $ $ $ Revenues Revenues from product sales: Southern Africa 1,420 1,025 1,524 Continental Africa 1,196 866 1,084 Australasia 291 214 378 North America 164 123 179 South America 528 370 452 3,599 2,598 3,617 Less: Equity method investments included above (358) (186) (278) Plus/less: Loss/(gain) on realized non-hedge derivatives included above 543 1,243 (291) Total revenues from product sales 3,784 3,655 3,048 Business segment data Year ended December 31 2009 2008 2007 $ $ $ Depreciation and amortization expense Southern Africa 283 260 307 Continental Africa 205 247 217 Australasia 38 47 54 North America 23 31 32 South America 88 76 68 637 661 678 Less: Equity method investments included above (22) (46) (23) Total depreciation and amortization expense 615 615 655 Segment income/(loss) Southern Africa 589 479 293 Continental Africa 184 (578) (95) Australasia (15) (22) 132 North America 53 138 1 South America 282 102 136 Other, including Corporate and Non-gold producing subsidiaries (133) (89) (82) Total segment income 960 30 385 Reconciliation of segment income to Net loss - attributable to AngloGold Ashanti Segment total 960 30 385 Exploration costs (150) (126) (117) General and administrative expenses (158) (136) (130) Market development costs (10) (13) (16) Non-hedge derivative loss (1,452) (258) (808) Other operating items - (19) 16 Taxation benefit/(expense) 33 (22) (118) Discontinued operations - 23 2 Noncontrolling interests (48) (42) (28) Net loss - attributable to AngloGold Ashanti (825) (563) (814) Segment assets Southern Africa(1) 3,458 2,558 3,429 Continental Africa(2) 3,951 3,521 4,160 Australasia(3) 496 1,279 1,183 North America 837 689 528 South America 1,175 1,028 910 Other, including Corporate, Assets held for sale and Non-gold producing subsidiaries 745 376 171 Total segment assets 10,662 9,451 10,381 (1) Includes assets held for sale in Tau Lekoa of $73 million in 2009, Weltevreden of $15 million in 2007 and properties held for sale by Rand Refinery Limited of $1 million (2008: $1 million, 2007: $1million). (2) Includes an effective 45 percent interest acquired during 2009 |
AngloGold Limited Share Incenti
AngloGold Limited Share Incentive Scheme and Plans (Deficit accumulated) | |
12 Months Ended
Dec. 31, 2009 | |
AngloGold Limited Share Incentive Scheme and Plans | |
AngloGold Limited Share Incentive Scheme and Plans | Employee share incentive scheme At a general meeting held on June 4, 1998, shareholders approved the introduction of the AngloGold Limited Share Incentive Scheme ("Share Incentive Scheme") for the purpose of providing an incentive to executive directors and senior employees of the Company and its subsidiaries to identify themselves more closely with the fortunes of the Company and also to promote the retention of such employees by giving them an opportunity to acquire shares in the Company. Employees participate in the scheme to the extent that they are granted options and accept them. At a general meeting held on April 30, 2002, it was approved that the rules of the Share Incentive Scheme be amended to provide for the exercise of options to be based on a condition, related to the performance of the Company, as determined by the directors and which will be objective and specified. An employee would only be able to exercise his options after the date upon which he has received written notification from the directors that the previously specified performance condition has been fulfilled or waived. The options granted prior to May1,2002 remained subject to the conditions under which they were granted. Although there are no automatically convertible unsecured debentures currently in issue under the rules of the Share Incentive Scheme, consequential amendments were approved to the rules of the scheme which effectively made the conversion of debentures subject to the same terms as the exercise of options. At December 31, 2009, the maximum number of ordinary shares that may be allocated for the purposes of the scheme is 9,961,618 (December 31, 2008: 9,720,794), equivalent to 2.75 percent of the total number of ordinary shares in issue at that date. At the annual general meeting held on April 29, 2005, shareholders approved the amendment to the maximum aggregate number of ordinary shares which may be acquired by any one participant in the scheme from 300,000 to 5percent of the 2.75percent attributable to all schemes and plans adopted by shareholders (or 0.1375percent of the total number of ordinary shares in issue at any one time). At December 31, 2009 the maximum aggregate number of ordinary shares which may be acquired by any one participant in the scheme was 498,080 shares. Ordinary shares issued in terms of the Share Incentive Scheme shall, subject to the provisions of the Share Incentive Scheme, rank pari passu with issued shares in all respects, including participation in dividends. Non-executive directors are not eligible for participation in the Share Incentive Scheme. Total plan employee costs On December 31, 2009, the Company has six stock-based compensation plans, which are described below. Total compensation cost charged against income for these plans was $41million, $40million and $33million for 2009, 2008 and 2007, respectively. At the year end, the unallocated balance of shares subject to the Share Incentive Scheme amounts to 6,733,934 (2008:6,278,998). Options An option may only be granted to an employee to purchase a certain number of shares, specified by the directors, at the option price payable in accordanc |
Condensed financial information
Condensed financial information (Deficit accumulated) | |
12 Months Ended
Dec. 31, 2009 | |
Condensed Financial Information Abstract | |
Condensed Financial Information | It is the Company's intention that from time to time its wholly-owned subsidiary AngloGold Ashanti Holdings plc ("IOMco") may issue debt securities which will be fully and unconditionally guaranteed by AngloGold Ashanti Limited (being the "Guarantor"). IOMco is an Isle of Man registered company that holds certain of AngloGold Ashanti's operations and assets located outside South Africa (excluding certain operations and assets in the United States, Australia and Africa). The following is condensed consolidating financial information for the Company as of December 31, 2009 and 2008 and for the years ended December31, 2009, 2008 and 2007, with a separate column for each of AngloGold Ashanti Limited as Guarantor, IOMco as Issuer and the other subsidiaries of the Company combined (the "Non-Guarantor Subsidiaries"). For the purposes of the condensed consolidating financial information, the Company carries its investments under the equity method. The following supplemental condensed consolidating financial information should be read in conjunction with the Company's consolidated financial statements. ANGLOGOLD ASHANTI LIMITED Condensed consolidating statements of income FOR THE YEAR ENDED DECEMBER 31, (In millions) 2009 2009 2009 2009 2009 $ $ $ $ $ AngloGold Ashanti IOMco Other subsidiaries Cons adjustments Total (the "Guarantor") (the "Issuer") (the "Non-Guarantor Subsidiaries") Sales and other income 1,775 (38) 2,273 (56) 3,954 Product sales 1,665 0 2,119 0 3,784 Interest, dividends and other 110 (38) 154 (56) 170 Costs and expenses 2,073 625 2,777 (623) 4,852 Production costs 862 0 1,367 0 2,229 Exploration costs 6 14 130 0 150 Related party transactions (18) 0 0 0 (18) General and administrative expenses/(recoveries) 96 (121) 149 34 158 Royalties paid 0 0 84 0 84 Market development costs 5 0 5 0 10 Depreciation, depletion and amortization 277 0 338 0 615 Impairment of assets 4 0 4 0 8 Interest expense 4 67 52 0 123 Accretion expense 6 0 11 0 17 Employment severance costs 10 0 4 0 14 Loss/(profit) on sale of assets, realization of loans, indirect taxes and other 12 665 (10) (657) 10 Non-hedge derivative loss and other commodity contracts 809 0 643 0 1,452 (Loss)/income before income tax provision (298) (663) (504) 567 (898) Taxation benefit/(expense) 112 (2) (77) 0 33 Equity income/(loss) in affiliates 98 (10) 0 0 88 Equity (loss)/income in subsidiaries (673) (383) 0 1,056 0 (Loss)/income from continuing operations (761) (1,058) (581) 1,623 (777) Discontinued operations 0 0 0 0 0 (Loss)/income after discontinued operations (761) (1,058) (581) 1,623 (777) Preferred stock dividends (64) 0 (65) 129 0 Net (loss)/income (825) (1,058) (646) 1,752 (777) Less: Net income attributable to noncontrolling interests 0 0 (48) 0 (48) Net (loss)/income attributable to AngloGold Ashanti (825) (1,058) (694) 1,752 (825) The accompanying notes are an integral part of these Consolidated Financial Statements |
Subsequent Events
Subsequent Events (Deficit accumulated) | |
12 Months Ended
Dec. 31, 2009 | |
Subsequent Events Abstract | |
Subsequent Events | Temporary suspension of operations at Iduapriem and Obuasi mines: On February 19, 2010, AngloGold Ashanti announced that following discussions with the Environmental Protection Agency of Ghana (EPA), the Iduapriem mine in Ghana had been temporarily suspended to address potentially adverse environmental impacts arising from the current tailings storage facility. On March 31, 2010 AngloGold Ashanti announced that it had suspended the operation of gold processing at the Obuasi mine pending the implementation of a revised water management strategy to reduce contaminants contained in its discharge. |