AngloGold Annual Report 2000 - Notes to the group financial statements

1	Accounting policies
	The financial statements are prepared according to the historical cost accounting convention. The group's accounting policies set out below are consistent in all material respects with those applied in the previous years, except for the changes disclosed in note 37. These accounting policies conform with South African Statements of Generally Accepted Accounting Practice and International Accounting Standards. The following South African Statements of Generally Accepted Accounting Practice have been adopted ahead of their effective dates: AC 105 (revised) - Leases; AC 107 (revised) - Events after the balance sheet date; AC 116 (revised) - Employee benefits. Basis of consolidation The group financial statements incorporate the financial statements of the company, its subsidiaries and its proportionate interest in joint ventures. The financial statements of subsidiaries and joint ventures are prepared for the same reporting period as the holding company, using the same accounting policies. Where an investment in a subsidiary or a joint venture is acquired or disposed of during the financial year, its results are included from, or to the date control became, or ceased to be effective. All inter-group transactions and balances are eliminated on consolidation. Unearned profits that arise between group entities are eliminated. Acquisition and goodwill arising thereon Where an investment in a subsidiary, joint venture or an associate is made, any excess of the purchase price over the fair value of the attributable reserves and net assets is recognised as goodwill. Goodwill which represents resources is amortised on a systematic basis which recognises the depletion of resources over the lesser of the life of the mine or 20 years. The unamortised balance is reviewed on a regular basis and, if impairment in the value has occurred, it is written off in the period in which the circumstances are identified. Goodwill in respect of subsidiaries and proportionately consolidated joint ventures is disclosed as goodwill. Goodwill relating to associates is included within the carrying value of the investment in associates. Joint ventures A joint venture is an entity in which the group holds a long-term interest and which is jointly controlled by the group and one or more other venturers under a contractual arrangement. The group's interest in a jointly controlled entity is accounted for by proportionate consolidation. Associates The equity method of accounting is used for an investment over which the group exercises significant influence and normally owns between 20 per cent and 50 per cent of the voting equity. Associates are equity accounted from the effective dates of acquisition, to the effective dates of disposal. Results of associates are equity accounted from their most recent audited annual financial statements or unaudited interim financial statements. Any losses of associates are brought to account in the consolidated financial statements until the investment in such associates is written down to a nominal amount. Thereafter, losses are accounted for only insofar as the group is committed to providing financial support to such associates. The carrying values of the investments in associates represent the cost of each investment, including unamortised goodwill, the share of post-acquisition retained earnings and any other movements in reserves. The carrying value of associates is reviewed on a regular basis and if any impairment in value has occurred, it is written off in the period in which these circumstances are identified. Other investments Investments, other than investments in associates, are included at cost less provisions for any impairment in value. Mining assets Mining assets are recorded at cost less accumulated amortisation and impairments. Cost includes pre-production expenditure incurred during the development of the mine and the net present value of future decommissioning costs. Cost also includes finance charges capitalised during the construction period where such costs are financed by borrowings. Mine development costs Capitalised mine development costs include expenditure incurred to develop new ore bodies, to define further mineralisation in existing ore bodies and to expand the capacity of a mine. Where funds have been borrowed specifically to finance a project, the amount of interest capitalised represents the actual borrowing costs incurred. Mine development costs are amortised using the units-of-production method based on estimated proved and probable mineral reserves. Amortisation is first charged on new mining ventures from the date on which production reaches commercial quantities. Proved and probable mineral reserves reflect estimated economically recoverable quantities which can be recovered in future from known mineral deposits. Stripping costs incurred during the production phase to remove additional waste ore are deferred and charged to operating costs on the basis of the average life of mine stripping ratio. Once commercial production has started, the cost of the "excess stripping" is capitalised as mine development costs when the actual stripping ratio exceeds the average life of mine stripping ratio. When the actual stripping ratio is below the average life of the mine ratio sufficient previously capitalised costs are expensed to increase the cost up to the average. Thus under this method the cost of stripping in any period will be reflective of the average stripping rates for the orebody as a whole. The average stripping ratio is calculated as a proportion of waste material removed to ore mined. The average life of the mine ratio is recalculated annually in light of additional knowledge and changes in estimates. Mine infrastructure Plant, equipment and buildings are amortised using the lesser of their useful life or units-of-production method based on estimated proved and probable mineral reserves. Land Land is not depreciated. Mineral rights, dumps and ore reserves Mineral rights are amortised using the units-of-production method based on estimated proved and probable mineral reserves. Dumps are amortised over the period of treatment. Ore reserves are measured mining resources which, when proved and probable, are transferred to mine development costs and amortised from the date on which commercial production begins. If the recoverable amount of any of the above assets is less than the carrying value, a provision is made for the impairment in value. Borrowing costs Interest on borrowings relating to the financing of major capital projects under construction is capitalised during the construction phase as part of the cost of the project. Other borrowing costs are expensed as incurred. Leased assets Assets subject to finance leases are capitalised at cost with the related lease obligation recognised at the same amount. Capitalised leased assets are depreciated over the shorter of their estimated useful lives and the lease term. Finance lease payments are allocated, using the effective interest rate method, between the lease finance cost, which is included in interest paid, and the capital repayment, which reduces the liability to the lessor. Operating lease rentals are charged against operating profits in a systematic manner related to the period of use of the assets concerned. Research and exploration expenditure Research and exploration expenditure is expensed in the year in which it is incurred. When a decision is taken that a mining property is capable of commercial production, all further pre-production expenditure is capitalised. Capitalisation of pre-production expenditure ceases when the mining property is capable of commercial production. Inventories Inventories are valued at the lower of cost and net realisable value after appropriate provisions for redundant and slow moving items. Cost is determined on the following bases: gold in process is valued at the average production cost at the relevant stage of production; gold on hand, uranium oxide and sulphuric acid are valued on an average production cost method; and consumable stores are valued at average cost. Cash and cash equivalents Cash and cash equivalents are defined as cash on hand, demand deposits and short-term, highly liquid investments readily convertible to known amounts of cash and subject to insignificant risk of changes in value. Cash on hand and in banks and short-term deposits which are held to maturity are carried at cost. Provisions Provisions are recognised when the group has a present obligation, whether legal or constructive, as a result of a past event for which it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Employee benefits The Group operates a defined benefit pension plan and post retirement medical aid benefit plans, and a number of defined contribution pension plans. Defined benefit plans The cost of providing benefits to the group's defined benefit plans are determined using the projected unit credit actuarial valuation method. Actuarial gains and losses arising in the defined benefit plans are recognised as income or expense when the cumulative unrecognised gains or losses for each individual plan exceed 10% of the defined benefit obligation and the fair value of plan assets. These gains or losses are recognised over the expected average remaining working lives of the employees participating in the plans. Defined contribution plans Contributions to defined contribution plans in respect of services during a current year are recognised as an expense in that year. Environmental expenditure Long-term environmental obligations comprising decommissioning and restoration are based on the group'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 before production commenced. Decommissioning costs are provided for at the present value of the expenditures expected to settle the obligation, using estimated cash flows based on current prices. When this provision gives access to future economic benefits, an asset is recognised and included within mining infrastructure. The unwinding of the decommissioning obligation is included in the income statement. The estimated future cost of decommissioning obligations are regularly reviewed and adjusted as appropriate for new circumstances or changes in law or technology. The estimates are discounted at a pre-tax rate that reflects current market assessments of the time value of money. Gains from the expected disposal of assets are not taken into account when determining the provision. Restoration costs The provision for restoration represents the cost for restoration of site damage arising, after the commencement of production, from rectifying work whose cost was reported through the income statement. Gross restoration costs are estimated at the present value of the expenditures expected to settle the obligation, using estimated cashflows based on current prices. The estimates are discounted at a pre-tax rate that reflects current market assessments of the time value of money. Restoration costs are accrued and expensed over the operating life of each mine using the units-of-production method based on estimated proved and probable mineral reserves. Expenditure on ongoing restoration costs is brought to account when incurred. Environmental Rehabilitation Trust Annual contributions are made to the AngloGold Environmental Rehabilitation Trust, created in accordance with South African statutory requirements, to fund the estimated cost of rehabilitation during and at the end of the life of a mine. The funds that have been paid into the trust fund plus the growth in the trust fund is shown as an asset on the balance sheet. Revenue recognition Revenue is recognised to the extent that it is probable that the economic benefits will flow to the group and the revenue can be reliably measured. The following criteria must also be present: the sale of mining products is recognised when the significant risks and rewards of ownership of the products are transferred to the buyer; foreign currency derivative financial instruments are translated at contract rates. Gains and losses on these contracts are recognised in income as a component of the related sale of mining products; dividends are recognised when the right to receive payment is established; and interest is recognised on a time proportion basis, taking account of the principal outstanding and the effective rate over the period to maturity, when it is determined that such income will accrue to the group Deferred taxation Deferred taxation is provided, using the liability method, on all temporary differences at the balance sheet date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes. Deferred tax assets are only recognised to the extent that it is probable that the temporary differences will reverse in the foreseeable future and future taxable profit will be available against which the temporary difference can be utilised. The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient future taxable profit will be available to allow all or part of the deferred tax asset to be utilised. Deferred tax assets and liabilities are measured at current tax rates. Hedging transactions The group enters into financial transactions to ensure a degree of price certainty and to guarantee a minimum revenue on a portion of the future planned gold production of its mines. Financial instruments entered into in pursuit of this objective are specifically designated as hedges at the inception of the future planned production of the mines. Gains and losses on gold hedging instruments that effectively establish prices for future production, are recognised in income at the earlier of any cash flow or delivery of the related hedged production. Hedged positions below current cost of production are recognised in the period in which the loss arises. The fair value of forward exchange contracts is calculated by reference to current forward exchange rates for contracts with similar maturity profiles. Foreign currency Foreign currency transactions are recorded at the exchange rate ruling on the transaction date. Monetary assets and liabilities designated in foreign currencies are translated at rates of exchange ruling at the year end and any gains and losses arising are included in earnings. Assets and liabilities (both monetary and non-monetary) of foreign entities are translated at the closing rate. Income statement items are translated at a weighted average rate of exchange for the period. Exchange differences are taken directly to a foreign currency translation reserve. Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as assets and liabilities of the foreign entity and are translated at the closing rate. Translation into US Dollars To assist international investors, a translation of convenience into the currency of the United States of America is provided. These translations are based on average rates of exchange for income statement items and at those ruling at the year end for the balance sheet. The cash flow statement has been translated at average rates to give effect to transaction based conversion.
2	Segmental information
	Based on risks and returns the directors consider that the primary reporting format is by business segment. The directors consider that there is only one business segment being mining, extraction and production of gold. Therefore the disclosures for the primary segment have already been given in these financial statements. The secondary reporting format is by geographical analysis by origin and destination.


1999	2000			2000	1999

US Dollars				SA Rands

		2	Segmental information (continued)
			Capital expenditure
176	159		South Africa	1,083	1,015
1	51		Africa	343	5
39	37		North America	249	235
2	22		South America	148	90
-	35		Australia	240	-

218	304		Group	2,063	1,345

			Total assets
2,720	1,824		South Africa	13,823	16,741
205	741		Africa	5,611	1,261
369	320		North America	2,426	2,268
454	461		South America	3,494	2,795
423	479		Australia	3,628	2,604

4,171	3,825		Group	28,982	25,669

			Gold sales
			Geographical analysis by destination is as follows:
110	110		South Africa	766	674
662	552		North America	3,835	4,042
-	221		Australia	1,534	-
66	177		Europe	1,227	404
1,367	1,148		United Kingdom	7,976	8,353

2,205	2,208		Group	15,338	13,473


		3	Revenue
			Revenues consists of the following principal categories:
2,205	2,208		Sale of gold	15,338	13,473
46	54		Sale of uranium, silver and sulphuric acid	384	282
72	37		Interest receivable (note 7)	250	437
1	-		Dividends received from other investments (note 7)	-	5

2,324	2,299			15,972	14,197


		4	Cost of sales
1,478	1,502		Cash operating costs	10,421	9,027
9	19		Other cash costs	131	58

1,487	1,521		Total cash costs	10,552	9,085
10	17		Retrenchment costs (note 10)	118	58
9	2		Rehabilitation and other non-cash costs	9	54

1,506	1,540		Production costs	10,679	9,197
196	217		Amortisation of mining assets (note 14)	1,508	1,199

1,702	1,757		Total production costs	12,187	10,396
(2)	(17)		Inventory change	(122)	(11)

1,700	1,740			12,065	10,385


1999	2000			2000	1999

US Dollars				SA Rands

		5	Exploration costs
57	63		Expenditure incurred during the year	441	348
(10)	(19)		Expenditure transferred to mining assets	(132)	(61)

47	44			309	287


		6	Other net income
			Other net income consists of the following principal categories:
3	3		Exchange gain on transactions other than sales	24	17
4	7		Profit on sale of assets	51	26

7	10			75	43
(3)	-		Unwinding of decommissioning obligation (note 27)	(2)	(18)

4	10			73	25


		7	Investment income
			Investment income consists of the following principal
			categories:
72	37		Interest receivable (note 3)	250	437
7	4		Income from associates before taxation	27	43
4	4		Growth in AngloGold Environmental Rehabilitation Trust (note 19)	25	26
1	-		Dividends received from other investments (note 3)	-	5

84	45			302	511


		8	Finance costs
50	74		Interest paid on bank loans and overdrafts	507	304
3	2		Interest paid on debentures	16	17

53	76		Total interest	523	321
-	(7)		Less: amounts capitalised	(42)	-

53	69			481	321


		9	Profit before exceptional items is arrived at after taking account of:

1	1		Auditors' remuneration	8	6
1	1		Audit fees	7	6
-	-		Underprovision prior year	1	-
-	-		Other services	-	-
196	217		Amortisation of mining assets (note 14)	1,508	1,199
194	215		Owned assets	1,495	1,188
2	2		Leased assets	13	11
(3)	-		Charge for post-retirement medical aid obligation (note 27)	4	(16)
1	2		Grants for educational and community development	14	5
1	1		Operating lease charges	9	8


1999	2000			2000	1999

US Dollars				SA Rands

		10	Employee benefits
			The average monthly number of employees, including contractors,
			during the year was made up as follows:	84,036	86,120
			Surface	19,688	19,445
			Underground	64,348	66,675
855	910		Employee costs including executive directors	5,575	5,219
769	825		Salaries, wages and other benefits	5,038	4,699
63	55		Defined contribution pension plans expense	338	385
9	6		Post-retirement medical costs	36	53
			Defined benefit expense
7	5		- current service cost	32	45
13	13		- interest cost	82	79
(32)	(5)		- expected return on plan assets	(33)	(196)
18	(7)		- actuarial (gain) loss	(45)	108
(7)	1		- curtailment, settlement (gain) loss	9	(42)
5	-		- past service costs	-	30
10	17		Retrenchment costs (note 4)	118	58
			Actual return on plan assets
32	5		- defined benefit pension plan	29	194
			Refer to directors' report for details of directors' emoluments

		11	Taxation
106	78		Current taxation	534	650
11	16		Mining taxation	111	69
87	55		Non-mining taxation	373	531
(2)	-		Under (over) provision prior years	1	(12)
8	7		Secondary tax on companies	48	50
2	-		Share of associates' taxation	1	12
(69)	(5)		Deferred taxation	(43)	(422)
6	21		Current (note 28)	153	38
-	(26)		Impairment (notes 12 and 28)	(196)	-
(69)	-		Rate change (note 12 and 28)	-	(423)
(6)	-		Share of associates' taxation - rate change (note 12)	-	(37)

37	73			491	228

			There is unredeemed capital expenditure estimated at R3,161 million,
			$417 million (1999: R2,995 million, $487 million) which is available for set-off
			against future taxable income from the mining operations of Joel mine.
			The unutilised tax losses of the North American operations which are available
			for offset against future profits earned in USA, amounts to R1,667 million,
			$220 million (1999: R2,431 million, $395 million).
			The unutilised tax losses of the South American operations which are available
			for offset against future profits earned in these countries, amounts to R534 million,
			$71 million (1999: R414 million, $67 million).
			Tax reconciliation
			A reconciliation of the marginal tax rate compared with that charged
			in the income statement is set out in the following table:	%	%
			Marginal tax rate	46	46
			Disallowable expenditure	3	5
			Impairment	8	-
			Goodwill written off	2	5
			Taxable non mining income	(2)	(1)
			Write back of amortisation and inventory change	18	18
			Mining capital appropriations	(23)	(21)
			Mining tax formula adjustment	(3)	(5)
			Dividends received	(1)	(1)
			Foreign income tax allowances	(8)	(6)
			Change in tax rate	-	(16)
			Other	(11)	(16)

			Effective tax rate	29	8


1999	2000			2000	1999

US Dollars				SA Rands

		12	Earnings per ordinary share
			Headline
			Headline earnings removes items of an exceptional nature from the
			calculation of earnings per share.
			The headline earnings per ordinary share have been based on the same
			number of weighted average number of ordinary shares in issue as the
			basic earnings per ordinary share calculation.
			The net profit has been adjusted by the following to arrive at
			headline earnings:
434	166		Net profit	1,116	2,654
(89)	-		Less: Profit on sale of associate	-	(543)
-	93		Add: Impairment of mining assets (note 14)	708	-
-	(26)		Less: Deferred taxation on impairment of mining assets (note 11)	(196)	-
55	20		Add: Amortisation of goodwill (note 15)	135	335
-	1		Add: Termination of retirement benefit plans	10	-
(75)	-		Less: Deferred taxation rate change (note 11)	-	(460)

325	254		Headline earnings	1,773	1,986

			Basic
			The calculation of basic earnings per ordinary share is based on net profit
			of R1,116 million, $166 million (1999: R2,654 million, $434 million) and
			106,962,987 (1999: 98,461,191) shares being the weighted average number
			of ordinary shares in issue during the financial year.
			Diluted
			The calculation of diluted earnings per ordinary share is based on net
			profit of R1,116 million, $166 million (1999: R2,654 million,
			$434 million) and 108,579,787 (1999: 107,954,778) shares being the
			diluted number of ordinary shares.
			The weighted average number of shares has been adjusted by the
			following to arrive at the diluted number of ordinary shares:
			Weighted average number of shares	106,962,987	98,461,191
			Share options granted	993,800	691,500
			Debentures issued	494,900	491,100
			Share options granted - Acacia Employee Option Plan	128,100	157,500
			Balance of ordinary shares issued for acquisition of Acacia	-	8,153,487

			Diluted number of ordinary shares	108,579,787	107,954,778


		13	Dividends
			Ordinary shares
			No. 87 of 1,100 SA cents (167 US cents) per ordinary share declared
133	192		on 9 February 2000 and paid on 31 March 2000.	1,178	783
			No. 88 of 750 SA cents (102 US cents) per ordinary share declared
146	118		on 26 July 2000 and paid on 22 September 2000.	803	881

279	310			1,981	1,664

			Dividend No. 89 of 650 SA cents (82 US cents) per ordinary share was
			declared on 30 January 2001.


				Mineral
		Mine	Mine	rights,
		development	infra-	dumps and
		costs	structure	ore reserves	Land	Total

14.	Mining assets
	SA Rands
	Cost
	Balance at beginning of year	16,914	8,565	1,533	97	27,109
	Additions	1,620	443	-	-	2,063
	Fair value adjustment (note 33)	-	-	(823)	-	(823)
	Through acquisition of subsidiaries and joint ventures (note 32)	-	1,093	1,195	-	2,288
	Transfers and disposals	(287)	(56)	59	2	(282)
	Translation adjustments	690	952	151	11	1,804

	Balance at end of year	18,937	10,997	2,115	110	32,159

	Accumulated amortisation
	Balance at beginning of year	5,251	3,938	63	-	9,252
	Amortisation charge for the year (note 4 and 9)	828	670	10	-	1,508
	Impairments	691	-	17	-	708
	Through acquisition of subsidiaries and joint ventures (note 32)	-	34	-	-	34
	Transfers and disposals	(59)	(3)	-	-	(62)
	Translation adjustments	208	349	3	-	560

	Balance at end of year	6,919	4,988	93	-	12,000

	Net book value at 31 December 1999	11,663	4,627	1,470	97	17,857
	Net book value at 31 December 2000	12,018	6,009	2,022	110	20,159
	US Dollars
	Cost
	Balance at beginning of year	2,748	1,392	249	16	4,405
	Additions	239	65	-	-	304
	Fair value adjustment (note 33)			(134)		(134)
	Through acquisition of subsidiaries and joint ventures (note 32)	-	151	165	-	316
	Transfers and disposals	(38)	(7)	7	-	(38)
	Translation adjustments	(449)	(150)	(8)	(1)	(608)

	Balance at end of year	2,500	1,451	279	15	4,245

	Accumulated amortisation
	Balance at beginning of year	854	640	10	-	1,504
	Amortisation charge for the year (note 4 and 9)	130	86	1	-	217
	Impairments	91	-	2	-	93
	Through acquisition of subsidiaries and joint ventures (note 32)	-	5	-	-	5
	Transfers and disposals	(6)	-	1	-	(5)
	Translation adjustments	(156)	(71)	(3)	-	(230)

	Balance at end of year	913	660	11	-	1,584

	Net book value at 31 December 1999	1,894	752	239	16	2,901
	Net book value at 31 December 2000	1,587	791	268	15	2,661
	Included in the amounts above for mine infrastructure are assets held under finance leases with a net book value of R26 million, $3 million (1999: R33 million, $5 million). Depreciation charged on these assets during the year totalled R13 million, $2 million (1999: R11 million, $2 million).
	Mining assets with a carrying value of R1,698 million, $224 million is encumbered by project finance (note 25).

14.	Mining assets (continued)
The impairment loss in respect of the cash generating units arose from the declining values of the remaining ore reserves and the view that the bullion price was unlikely to recover substantially from its low levels in the medium term. The impairment is made up as follows:

						2000	2000

						SA Rands	US Dollars

	Australia
	The abandonment of exploration in certain areas.					24	3
	North America
	Jerritt Canyon based on the value in use and at the relevant discount rate.					214	28
	South Africa
	Ergo and Matjhabeng based on the value in use and at the relevant discount rate.					173	23
	Freddies Four Shaft being a discontinued project at the full remaining book value of the mining assets					23	3
	Elandsrand and Deelkraal operations based on the net selling price per the agreement with Harmony
	Gold Mining Company Limited dated 31 January 2001.					274	36

						708	93


	1999	2000				2000	1999

	US Dollars					SA Rands

			15	Goodwill
				Cost
	-	276		Balance at beginning of year		1,700	-
	276	143		Through acquisition of subsidiaries and joint ventures (note 32)		1,080	1,700
	-	100		Fair value adjustment (note 33)		611	-
	-	(44)		Translation adjustment		209	-

	276	475		Balance at end of year		3,600	1,700

				Accumulated amortisation
	-	54		Balance at beginning of year		335	-
	55	20		Amortisation		135	335
	(1)	(2)		Translation adjustment		74	-

	54	72		Balance at end of the year		544	335

	222	403		Net book value		3,056	1,365


			16	Investment in associates
				The group has the following associated undertakings:
				-	A 42.73% (1999: 42.73%) interest in Rand Refinery Limited, which is
					involved in the refining of bullion and by-products which are sourced
					inter alia from South Africa and foreign gold producing mining
					companies. The year end of Rand Refinery Limited is 30 September.
				-	A 25% (1999: Nil) interest in Oro Group (Proprietary) Limited which
					is involved in the manufacture and wholesale of jewellery. The year end
					of Oro Group (Proprietary) Limited is March. Equity accounting is based
					on the results for the six months ended 30 September 2000.
				Carrying value of associates consists of:
	1	1		Unlisted shares at cost		9	9
	12	9		Share of retained earnings		71	71
	-	4		Profit after taxation		26	-
	-	7		Acquisitions		55	-
	-	(2)		Dividends		(12)	-
	-	-		Disposals		(1)	-
	-	1		Translation adjustment		-	-

	13	20		Carrying value		148	80

	13	20		Directors' valuation of unlisted associates		148	80


1999	2000			2000	1999

US Dollars				SA Rands

		16	Investment in associates (continued)
			The group's effective share of certain balance sheet items of its
			associates are as follows:
11	11		Non-current assets	79	65
10	12		Current assets	94	62

21	23		Total assets	173	127

1	4		Non-current liabilities	34	6
7	5		Current liabilities	37	41

8	9		Total equity and liabilities	71	47

13	14		Net assets	102	80

			Reconciliation of the carrying value of investments
			in associates with net assets:
13	14		Net assets	102	80
-	6		Goodwill	46	-


13	20		Carrying value of investments in associates	148	80


		17	Other investments
			Listed investments
-	-		Balance at beginning of year	3	-
-	-		Through acquisition of subsidiaries and joint ventures (note 32)	-	3

-	-		Balance at end of year	3	3

1	-		Market value of listed investments	2	6

			Unlisted investments
3	7		Balance at beginning of year	43	18
4	-		Through acquisition of subsidiaries and joint ventures (note 32)	-	24
2	1		Additions	11	13
(2)	(1)		Disposals	(5)	(12)
-	-		Translation adjustment	3	-

7	7		Balance at end of year	52	43

7	7		Directors' valuation of unlisted investments	52	43

7	7		Total other investments	55	46

8	7		Total valuation	54	49


		18	Interest in joint ventures
			The group's effective share of income, expenses, assets, liabilities and cash
			flows of joint ventures, which are included in the consolidated financial
			statements, are as follows:
			Income statement
108	133		Gold sales	902	661
70	80		Cost of sales	544	428

38	53		Operating profit	358	233
5	(1)		Other net income	(7)	32
2	3		Investment income	21	12
(14)	(16)		Finance costs	(106)	(87)

31	39		Profit on ordinary activities before taxation	266	190


1999	2000			2000	1999

US Dollars				SA Rands

		18	Interest in joint ventures (continued)
			Balance sheet
65	573		Non-current assets	4,344	403
55	110		Current assets	836	338

120	683		Total assets	5,180	741

3	425		Shareholders' equity	3,223	22
3	3		Minority interests	23	21
			Non-current liabilities
74	172		Interest-bearing borrowings	1,304	453
1	2		Provisions	18	7
			Current liabilities
28	47		Interest-bearing borrowings	354	171
11	34		Other	258	67

120	683		Total equity and liabilities	5,180	741

			Cash flow statement
42	172		Cash flows from operating activities	1,167	256
(3)	(150)		Cash flows from investing activities	(1,017)	(18)
(29)	(33)		Cash flows from financing activities	(224)	(177)

10	(11)		Net (decrease) increase in cash and cash equivalents	(74)	61


		19	AngloGold Environmental Rehabilitation Trust
37	45		Balance at beginning of year	274	219
5	9		Contributions	59	29
4	4		Growth in AngloGold Environmental Rehabilitation Trust (note 7)	25	26
(1)	(11)		Translation adjustment

45	47		Balance at end of year	358	274

			Market value of investments held in the AngloGold Environmental
46	50		Rehabilitation Trust	379	285

		20	Long-term loans
			Unsecured
44	45		Loans to joint venture partners	341	273
19	16		Loan to AngloGold Limited Employees' Share and Debenture Trust	120	115
			Interest is payable annually at the official interest rate per the seventh
			schedule of the South African Income Tax Act (note 26)
14	10		Other	78	87

77	71			539	475
21	21		Less: Current portion of long-term loans included in current assets	161	131

56	50		Total long-term loans	378	344


		21	Inventories
			At cost
101	100		Gold in process	755	620
8	7		Gold on hand	56	50
16	24		By-products	184	101

125	131		Total metal inventories	995	771
65	61		Consumable stores at average cost	458	398

190	192			1,453	1,169


1999	2000			2000	1999

US Dollars				SA Rands

		22	Trade and other receivables
82	97		Trade debtors	737	505
12	16		Prepayments and accrued income	121	72
20	15		South African Revenue Services - Value added taxation	111	121
109	101		Other debtors	768	674

223	229			1,737	1,372


		23	Cash and cash equivalents
205	168		Cash and deposits on call	1,276	1,258
288	27		Money market instruments	201	1,773

493	195			1,477	3,031


		24	Share capital and premium
			Share capital
			Authorised
30	30		200,000,000 ordinary shares of 50 cents each	100	100
-	-		2,000,000 A redeemable preference shares of 50 cents each	1	1
-	-		5,000,000 B redeemable preference shares of 1 cent each	-	-

30	30			101	101

			Issued
			107,021,087 (1999: 106,614,678) ordinary shares of 50 cents each
8	9		Balance at beginning of year	53	49
1	-		Issue of shares	1	4
-	(2)		Translation adjustment


9	7		Balance at end of year	54	53

-	-		2,000,000 A redeemable preference shares of 50 cents each	1	1
-	-		778,896 B redeemable preference shares of 1 cent each	-	-

-	-			1	1
-	-		Less: Held within the group	(1)	(1)

-	-		Balance at end of year	-	-

			Share premium
945	1,320		Balance at beginning of year	8,111	5,556
425	17		Movement arising from issue of shares	116	2,597
(7)	(3)		Share issue expenses written off	(18)	(42)
(43)	(238)		Translation adjustment

1,320	1,096		Balance at end of year	8,209	8,111
(53)	(53)		Less: Held within the group	(312)	(312)

1,267	1,043		Balance at end of year	7,897	7,799

1,276	1,050		Share capital and premium	7,951	7,852

Geographical analysis by origin is as follows:

	Gold sales		Operating profit		Net operating assets		Average number of employees
	2000	1999	2000	1999	2000	1999	2000	1999
South Africa	11,021	11,055	2,089	2,344	11,235	11,221	79,124	82,645
Africa	767	492	333	179	3,274	605	849	643
North America	1,147	927	136	173	2,167	1,931	718	735
South America	1,205	999	480	392	2,476	2,108	2,388	2,097
Australia	1,198	-	235	-	1,697	2,301	957	-

Group	15,338	13,473	3,273	3,088	20,849	18,166	84,036	86,120

US Dollars
South Africa	1,587	1,809	298	384	1,483	1,822
Africa	111	81	48	29	432	98
North America	165	152	19	28	286	314
South America	173	163	69	64	327	343
Australia	172	-	34	-	224	374

Group	2,208	2,205	468	505	2,752	2,951

	Gold production (kilograms)		Gold production (imperial ounces 000)
	2000	1999	2000	1999

South Africa	168,524	178,704	5,418	5,746
Africa	11,388	8,146	366	262
North America	15,426	15,097	496	485
South America	13,657	13,219	439	425
Australia	16,300	-	524	-

Group	225,295	215,166	7,243	6,918