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Company financial statements

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Notes to the company financial statements

Income statement
Balance sheet
Cash flow statement
Statement of recognised income and expense
Notes to the financial statements

Notes to company financial statements (XLS - 130KB)

for the year ended 31 December
Figures in million		2005	2004
		SA Rands
1	Revenue
	Revenue consists of the following principal categories:
	Gold income	7,359	7,189
	By-products and other revenue (note 2)	224	222
	Interest received (note 23)	28	183
	Dividend received from subsidiaries (note 23)	650	-
		8,261	7,594
2	Cost of sales
	Cash operating costs	5,129	5,382
	By-products and other revenue (note 1)	(224)	(222)
		4,905	5,160
	Other cash costs	34	50
	Total cash costs ⁽¹⁾	4,939	5,210
	Retrenchment costs (note 7)	158	44
	Rehabilitation and other non-cash costs	99	105
	Production costs	5,196	5,359
	Amortisation of tangible assets (notes 6, 9 and 23)	1,109	753
	Total production costs	6,305	6,112
	Inventory change	(20)	34
		6,285	6,146
	⁽¹⁾ Total cash costs include net refining fees.
3	Other net operating expenses
	Pension and medical defined benefit provisions	46	27
4	Operating special items
	Profit on sale of loan	4	-
	Loan waived	(3)	-
		1	-

Figures in million			2005	2004
			SA Rands
5	Finance costs and unwinding of decommissioning and restoration obligations

	Finance costs on bank loans and overdrafts		44	6
	Finance costs on corporate bond		215	215
	Finance costs on interest rate swap ⁽¹⁾		19	68
	Other finance costs		15	11
			293	300
	Less: amounts capitalised (note 9)		(102)	(67)
			191	233
	Unwinding of decommissioning obligation (note 19)		19	43
	Unwinding of restoration obligation (note 19)		8	-
	(note 23)		218	276
	⁽¹⁾	Interest received on the interest rate swap entered into against the corporate bond which has not been designated as a fair value hedge was R24m (2004: R83m). The swap was unwound in April 2005.
6	Profit (loss) before taxation
	Profit (loss) before taxation is arrived at after taking account of:
	Auditors' remuneration
	-	Statutory audit fees	19	9
	-	Under provision prior year	1	1
	-	Other assurance services	3	-
			23	10
	Amortisation of tangible assets (notes 2, 9 and 23)
		Owned assets	1,109	753
	Grants for educational and community development		27	24
	Operating lease charges		258	234
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Figures in million			2005	2004
			SA Rands
7	Employee benefits
	Employee benefits including executive directors' salaries and other benefits		3,258	3,250
	Health care and medical scheme costs
	-	current medical expenses	229	207
	-	defined benefit post-retirement medical expenses	87	93
	Contributions to pension and provident plans
	-	defined contribution	122	180
	-	defined benefit	22	37
	Retrenchment costs (note 2)		158	44
	Share-based payment expense ⁽¹⁾		12	-
	Included in cost of sales and other operating expenses		3,888	3,811
	Actuarial defined benefit plan expense analysis
	Defined benefit pension plan expense
	-	current service cost	40	41
	-	interest cost	88	91
	-	expected return on plan assets	(106)	(95)
			22	37
	Defined benefit post-retirement medical expense
	-	current service cost	7	4
	-	interest cost	80	80
	-	recognised past service cost	-	9
			87	93
	Actual return on plan assets
	-	South Africa defined benefit pension plan	366	219
	Refer to the remuneration report for details of directors' emoluments
⁽¹⁾	Details of the equity settled share-based payment arrangements of the group have been disclosed in group note 12. These arrangements consist of awards by the company to employees of various group companies. The income statement expense of R12m for the company is only in respect of awards made to employees of the company.

Figures in million			2005	2004
			SA Rands
8	Taxation
	Current taxation
		Non-mining taxation	-	229
		Under provision prior year	264	-
			264	229
	Deferred taxation
		Temporary differences	213	127
		Unrealised non-hedge derivatives	(200)	(199)
		Impairment	(15)	-
		Change in statutory tax rate ⁽¹⁾	(79)	-
		Change in estimated deferred tax rate	(74)	(803)
			(155)	(875)
			109	(646)
	Deferred taxation on continuing operations		(155)	(875)
	Deferred taxation on discontinued operations		19	5
	(note 21)		(136)	(870)
⁽¹⁾	During the financial year there were changes in the South African statutory tax rates. These rates can be summarised as follows: Maximum statutory mining tax rate 45% (2004:46%), non-mining statutory tax rate 37% (2004: 38%), statutory company tax rate 29% (2004: 30%).
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	Tax reconciliation
	A reconciliation of the mining and non-mining tax rate compared with that charged in the income statement is set out in the following table:
				2005		2004
				Non-mining	Mining	Non-mining	Mining
				%		%
		Current tax rate		37	37	38	38
		Disallowable expenditure		9	(57)	(3)	12
		Mining capital allowances without tax cover		-	124	-	(25)
		Dividends received		(43)	-	-	-
		Taxable items not forming part of the income statement		7	(21)	(7)	(1)
		Impairments		-	(15)	-	-
		Impact of prior year under provisions		-	(228)	(37)	-
		Change in estimated deferred tax rate		-	64	-	(136)
		Change in statutory tax rate		(10)	15	-	-
		Other		7	23	4	(2)
		Effective tax rate		7	(58)	(5)	(114)

9	Tangible assets
			Mine development costs	Mine infra- structure	Mineral rights, dumps and exploration properties	Land	Total
	SA Rands
	Cost
	Balance at 1 January 2004		11,046	3,438	699	20	15,203
	Additions
	-	project expenditure	829	188	5	-	1,022
	-	stay-in-business expenditure	1,001	82	-	-	1,083
	Transfers and other movements		66	(4)	2	-	64
	Finance costs capitalised (note 5)		67	-	-	-	67
	Balance at 31 December 2004		13,009	3,704	706	20	17,439
	Accumulated amortisation
	Balance at 1 January 2004		3,672	2,260	110	-	6,042
	Amortisation for the year (notes 2, 6 and 23)		627	85	41	-	753
	Transfers and other movements		19	(19)	-	-	-
	Balance at 31 December 2004		4,318	2,326	151	-	6,795
	Net book value at 31 December 2004		8,691	1,378	555	20	10,644

	Figures in million		Mine development costs	Mine infra- structure	Mineral rights, dumps and exploration properties	Land	Total
	SA Rands
	Cost
	Balance at 1 January 2005		13,009	3,704	706	20	17,439
	Additions
	-	project expenditure	626	168	8	-	802
	-	stay-in-business expenditure	1,252	61	-	-	1,313
	Disposals		-	(26)	-	-	(26)
	Transfers and other movements		-	227	(156)	-	71
	Finance costs capitalised (note 5)		102	-	-	-	102
	Balance at 31 December 2005		14,989	4,134	558	20	19,701
	Accumulated amortisation
	Balance at 1 January 2005		4,318	2,326	151	-	6,795
	Amortisation for the year (notes 2, 6 and 23)		950	123	36	-	1,109
	Impairments (note 23)		45	-	-	-	45
	Impairments reversal (Group note 14)		-	(115)	-	-	(115)
	Transfers and other movements		-	-	(56)	-	(56)
	Balance at 31 December 2005		5,313	2,334	131	-	7,778
	Net book value at 31 December 2005		9,676	1,800	427	20	11,923
	The capitalisation rate used to determine the amount of borrowing costs eligible for capitalisation is 10.65% (2004: 10.65%).
	Impairments include the following:
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Figures in million						2005	2004
						SA Rands
	Goedgenoeg drilling and 1650 level decline drilling					14	-
	An impairment charge was recognised during an assessment and review of exploration properties as Goedgenoeg will not generate future cash flows.
	East of Bank Dyke at TauTona					31	-
	Due to a change in original mine plan, the East of Bank Dyke access development has been impaired as it will not generate future cash flows.
						45	-
	The above impairments relate to impairments of mine development costs that were abandoned and will generate no future cash flows.
	A register containing details of properties is available for inspection by shareholders or their duly authorised agents during business hours at the registered office of the company.

Figures in million						2005	2004
						SA Rands
10	Investment in associate
	The company has a 25.0% (2004: 26.6%) 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 31 March. Equity accounting is based on results to 30 September 2005.
	Change in accounting policy for associate
	The company changed its accounting policy for investments in associates. Previously investment in the associate was equity accounted and the associate's share of profits and losses was reported in the company income statement and balance sheet.
	The associate company is now recorded at cost less impairment. This change was made to comply with IAS 28 which prohibits the use of equity accounting for associates in the separate financial statements of the investor. IAS 28 (revised) is retrospectively applied for accounting periods beginning on or after 1 January 2005, accordingly comparatives have been restated.
	The impact on comparative figures is as follows:
	A decrease in income from associate after tax for 2004 of R1m and a decrease in retained earnings brought forward prior to 2004 of R5m resulted in a decrease in investment in associate of R6m.
	The carrying value of the associate consists of:
	Unlisted shares at cost less impairments					37	41
	Impairment ⁽¹⁾					(2)	(4)
	Carrying value					35	37
	Directors' valuation of unlisted associate					35	37
	The company's effective share of certain balance sheet items of its associate at 30 September 2005 is as follows:
	Non-current assets					15	14
	Current assets					59	49
	Total assets					74	63
	Non-current liabilities					29	27
	Current liabilities					28	21
	Total liabilities					57	48

	Net assets					17	15
	⁽¹⁾	During the year, the Oro Group (Proprietary) Limited investment was impaired. The impairment test considered the investment's fair value and future cash flow. An impairment of R2m (2004: R4m) was recorded.
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Figures in million						2005	2004
						SA Rands
11	Other investments
	Unlisted investments
	Balance at beginning of year					17	17
	Disposals					(1)	-
	Balance at end of year (note 26)					16	17
	Directors' valuation of unlisted investments					16	17
12	Inventories
	Gold in process					179	165
	Gold on hand					2	1
	By-products					77	77
	Total metal inventories					258	243
	Consumable stores					88	177
						346	420
13	Investment in Environmental Rehabilitation Trust Fund
	Balance at beginning of year					265	230
	Contributions					45	35
	Rehabilitation expenditure incurred					(26)	-
	Balance at end of year					284	265
	The fund is managed by Rand Merchant Bank and mainly invested in government long bonds and other fixed-term deposits.
14	Other non-current assets
	AngloGold Ashanti Pension Fund (asset) (note 20)					51	-
	Loans and receivables
	Stone and Allied, unsecured, receivable over five years carrying interest at the repo rate					4	4
	Other					5	6
						60	10
	Less: current portion of non-current assets included in current assets					-	1
	Balance at end of year (note 26)					60	9
15	Trade and other receivables
	Trade debtors					231	197
	Prepayments and accrued income					99	107
	Recoverable tax, rebates, levies and duties					43	53
	Other debtors					12	13
	(note 26)					385	370
	Trade debtors are non-interest bearing and are generally on current terms less than 90 days.
16	Cash and cash equivalents
	Cash and deposits on call					12	92
	(note 26)
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17	Retained earnings and other reserves
			Retained earnings	Non- distributable reserves ⁽¹⁾	Foreign currency translation reserve	Actuarial gains (losses) ⁽²⁾	Other compre- hensive income ⁽³⁾	Total
	SA Rands millions
	Balance at December 2003 as previously reported		(463)	141	(733)	-	(517)	(1,572)
	Change in accounting policy for actuarial gains and losses					(112)		(112)
	Change in accounting policy for monetary assets forming part of net investment (IAS 21 revised)		(733)		733			-
	Change in accounting policy for associates (IAS 28)		(6)					(6)
	As restated		(1,202)	141	-	(112)	(517)	(1,690)
	Actuarial gains and losses recognised					(18)		(18)
	Deferred taxation recognised directly in equity (note 21)					6		6
	Profit for the year		538					538
	Dividends (Group note 16)		(1,197)					(1,197)
	Net loss on cash flow hedges removed from equity and reported in income						276	276
	Net gain on cash flow hedges						482	482
	Deferred taxation on cash flow hedges (note 21)						(278)	(278)
	Balance at December 2004		(1,861)	141	-	(124)	(37)	(1,881)
	Actuarial gains and losses recognised					(176)		(176)
	Deferred taxation recognised directly in equity (note 21)					68		68
	Profit for the year		114					114
	Dividends (Group note 16)		(926)					(926)
	Net gain on cash flow hedges removed from equity and reported in income						(102)	(102)
	Net loss on cash flow hedges						(785)	(785)
	Deferred taxation on cash flow hedges (note 21)						340	340
	Share-based payment expense (Group note 29)						15	15
	Balance at December 2005		(2,673)	141	-	(232)	(569)	(3,333)

	⁽¹⁾	Non-distributable reserves comprise a surplus on disposal of company shares of R141m (2004: R141m).
	⁽²⁾	With the adoption of IAS 19 revised, actuarial gain and loss movements are accounted through equity reserves. Actuarial gains and losses arise from a change in assumption parameters and the difference between the actual and expected return on plan assets.
	⁽³⁾	Other comprehensive income represents the effective portion of fair value gains or losses in respect of cash flow hedges until the underlying transaction occurs, upon which the gains or losses are recognised in earnings and the equity item for share-based payments.

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Figures in million			2005	2004
			SA Rands
18	Borrowings
	Unsecured
	Corporate Bond ⁽¹⁾		2,062	2,057
	Semi-annual coupons are payable at 10.5% per annum and the bond is repayable on 28 August 2008 and is rand-based.
	Money-market short-term borrowings, at market-related rates and are rand-based		805	-
	Total borrowings (note 26)		2,867	2,057
	Less: current portion of borrowings included in current liabilities		878	73
	Total long-term borrowings		1,989	1,984
	Amounts falling due:
	Within one year		878	73
	Between two and five years		1,989	1,984
	(note 26)		2,867	2,057
	Undrawn facilities
	There were no undrawn borrowing facilities as at 31 December 2005 (2004: nil).
	⁽¹⁾ Corporate Bond
	Senior unsecured fixed rate bond		2,000	2,000
	Less: unamortised discount and bond issue costs		11	16
			1,989	1,984
	Add: accrued interest		73	73
			2,062	2,057
19	Environmental rehabilitation provisions
	Provision for decommissioning
	Balance at beginning of year		298	191
	Change in estimates ⁽¹⁾		181	64
	Unwinding of decommissioning obligation (note 5)		19	43
	Balance at end of year		498	298
	Provision for restoration
	Balance at beginning of year		219	133
	Charge to income statement		(82)	86
	Change in estimates ⁽¹⁾		304	-
	Unwinding of restoration obligation (note 5)		8	-
	Utilised during the year		(25)	-
	Balance at end of year		424	219
	Total environmental rehabilitation provisions		922	517
	These provisions are anticipated to unwind beyond the end of the life of mine.
	⁽¹⁾	The change in estimates relates to changes in laws and regulations governing the protection of the environment and factors relative to rehabilitation estimates and a change in the quantities of material in reserves and a corresponding change in the life of mine plan.
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Figures in million			2005	2004
			SA Rands
20	Provision for pension and post-retirement benefits
	Defined benefit plans
	The company has made provision for pension provident and medical schemes covering substantially all employees. The retirement schemes consist of the following:
	AngloGold Ashanti Pension Fund (asset) (Group note 33)		(51)	69
	Post-retirement medical scheme for AngloGold Ashanti South African employees (Group note 33)		1,172	924
			1,121	993
	Transferred to other non-current assets
	AngloGold Ashanti Pension Fund (note 14)		51	-
			1,172	993
21	Deferred taxation
	Deferred taxation relating to temporary differences is made up as follows:
	Deferred taxation liabilities
		Tangible assets	3,535	3,386
		Inventories	59	57
		Derivatives	105	159
		Other	17	17
			3,716	3,619
	Deferred taxation assets
		Provisions	638	474
		Derivatives	802	257
		Tax assets	62	130
			1,502	861
	Net deferred taxation liability		2,214	2,758
	The movement on the net deferred tax liability is as follows:
		Balance at beginning of year	2,758	3,356
		Income statement charge (note 8)	(136)	(870)
		Taxation on other comprehensive income (note 17)	(340)	278
		Taxation on actuarial loss (note 17)	(68)	(6)
		Balance at end of year	2,214	2,758

Figures in million			2005	2004
			SA Rands
22	Trade and other payables
	Trade creditors		184	349
	Accruals		490	485
	Amounts due to related parties		30	22
	Unearned premiums on normal sale exempted contracts		315	326
	Other creditors		1	2
	(note 26)		1,020	1,184
	Trade and other payables are non-interest bearing and are normally settled within 60 days.
23	Cash generated from operations
	Profit (loss) before taxation		442	(35)
	Adjusted for:
	Non-cash movements		162	17
	Movement on non-hedge derivatives		717	960
	Amortisation of tangible assets (notes 2, 6 and 9)		1,109	753
	Interest received (note 1)		(28)	(183)
	Dividends received from subsidiaries (note 1)		(650)	-
	Finance costs and unwinding of decommissioning and restoration obligations (note 5)		218	276
	Impairment of investment in associate (note 10)		2	4
	Impairment of tangible assets (note 9)		45	-
	Operating special items (note 4)		(1)	-
	Movements in working capital		(134)	(225)
			1,882	1,567
	Movements in working capital:
	Decrease (increase) in inventories		74	(30)
	(Increase) decrease in trade and other receivables		(13)	69
	Decrease in trade and other payables		(195)	(264)
			(134)	(225)

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24	Related parties
	Details of material transactions with those related parties not dealt with elsewhere in the financial statements are summarised below:
			2005		2004
			Purchases from related parties	Amounts owed to related parties	Purchases from related parties	Amounts owed to related parties
	SA Rands million
	Holding company Anglo American plc		30	7	34	-
	Subsidiaries of AngloGold Ashanti Limited
	AGRe Insurance Company Limited		41	-	47	-
	AngloGold Health Service (Pty) Limited		264	22	129	16
	Rand Refinery Limited		18	2	11	2
	Fellow subsidiaries of the Anglo American plc group
	Anglo Coal - a division of Anglo Operations Limited		4	2	6	2
	Boart Longyear Limited - mining services⁽¹⁾		28	-	48	5
	Haggie Steel Wire Rope Operations ⁽²⁾		50	6	59	-
	Mondi Limited - timber		105	11	101	10
	Scaw Metals - a division of Anglo Operations Limited - steel and engineering		31	4	30	5
	The Tongaat-Hulett Group Limited		1	-	-	-
	Management fees, royalties and dividends from subsidiaries amount to R659m (2004: R31m). This consists mainly of R650m, being a dividend received from AngloGold Ashanti Holdings plc.
	Directors and other key management personnel
	Details relating to directors' emoluments and shareholdings in the company are disclosed in the remuneration and directors' reports.
	Compensation to key management personnel totalled R79m (2004: R55m). This total comprised short-term employee benefits of R69m (2004: R51m), post-employment benefits of R7m (2004: R4m); and share-based payments of R3m (2004: nil).
	Amounts owed to related parties are unsecured non-interest bearing and normally settled within 60 days
	⁽¹⁾	Anglo American plc sold their interest in Boart Longyear Limited with effect from 29 July 2005.
	⁽²⁾	Haggie Steel Wire Rope Operation's related party transactions, previously included in Scaw Metals - a division of Anglo Operations Limited. During the year, Haggie Steel Wire Rope Operations were unbundled and are now reported separately.

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Figures in million		2005	2004
		SA Rands
25	Contractual commitments and contingencies
	Operating leases
	At 31 December 2005, the company was committed to making the following payments in respect of operating leases for amongst others, hire of plant and equipment and land and buildings.
	Expiry within
	- One year	38	5
	- Between one and two years	-	1
	- Between two and five years	-	3
	- After five years	-	1
		38	10
	Capital commitments
	Acquisition of tangible assets
	Contracted for	542	551
	Not contracted for	3,146	3,195
	Authorised by the directors	3,688	3,746
	Allocated for:
	Project expenditure
	- within one year	948	1,285
	- thereafter	641	833
		1,589	2,118
	Stay-in-business expenditure
	- within one year	1,867	610
	- thereafter	232	1,018
		2,099	1,628
	This expenditure will be financed from existing cash resources, cash from operations and future borrowings.
	Contingent liabilities
	AngloGold Ashanti has signed as surety in favour of the bankers on the Yatela loan.	3	8
	The South African Department of Water Affairs and Forestry issued a new Directive on 1 November 2005 ordering the four mining groups, Simmer and Jack Investments (Proprietary) Limited, Simmer and Jack Mines Limited (collectively known as Simmers who purchased the Buffelsfontein shafts from DRDGold Limited), Harmony Gold Mining Company Limited, AngloGold Ashanti and Stilfontein Gold Mining Company to share equally, the costs of pumping water at Stilfontein's Margaret Shaft. This follows an interdict application made by AngloGold Ashanti in response to DRDGold Limited's threat to cease funding the pumping of water at the Margaret and Buffelsfontein shafts, after placing Buffelsfontein, its subsidiary that operated the North West operations, into liquidation on 22 March 2005. Simmers have purchased the Buffelsfontein shafts from DRDGold Limited and have assumed the environmental and water management liabilities associated with the Buffelsfontein shafts.
	The directive also orders the mining companies to submit an agreement and a joint proposal towards the long term sustainable management of water arising from the mining activities in the area. The company believes that it is not liable to fund these pumping costs but cannot make any assurances regarding the ultimate result until the matter has been settled.	-	-
	AngloGold Ashanti has identified a number of groundwater pollution sites at its current operations in South Africa. The company has investigated a number of different technologies and methodologies that could possibly be used to remediate the pollution plumes. The viability of the suggested remediation techniques in the local geological formation in South Africa is however unknown. No sites have been remediated in South Africa. Present research and development work is focused on several pilot projects to find a solution that will in fact yield satisfactory results in South African conditions. Subject to the technology being developed as a remediation technique no reliable estimate can be made for the obligation.	-	-
	Following the decision to discontinue operations at Ergo in 2005, employees surplus to requirements have been terminated and retrenchment packages settled. Ergo continues to retain various staff members to complete the discontinuance and the attendant environmental obligations which are expected to be completed by 2015. Retained employees may resign, be transferred within the group, attain retirement age or be retrenched as their current position is made redundant. The company is currently unable to determine the effects, if any, of any potential retrenchment costs.	-	-
	AngloGold Ashanti has undertaken to re-export certain gold artifacts, temporarily imported into South Africa, for which custom and value added tax was waived. The company will be required to pay if it fails to comply with the re-export arrangements agreed with the South African Revenue Service.	34	8
	The company has provided surety in favour of the lender in respect of gold loan facilities with two wholly-owned subsidiaries of Oro Group (Proprietary) Limited an associate of the company. The company has a total maximum liability, in terms of the suretyships, of R100m. The suretyship agreements have a termination notice period of ninety days.	100	-
		137	16
	Guarantees
	The company has guaranteed all payments and other obligations of AngloGold Ashanti Holdings plc regarding the convertible bonds issued during 2004, with a final maturity date of 27 February 2009. The bonds issued amounted to $1 billion at 2.375%. The company obligations regarding the guarantee will be direct, unconditional and unsubordinated.

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26	Financial risk management activities
	In the normal course of its operations, the company is exposed to gold price, currency, interest rate, liquidity and credit risks. In order to manage these risks, the company may enter into transactions which make use of both on-and-off-balance sheet derivatives. The company does not acquire, hold or issue derivatives for trading purposes. The company has developed a comprehensive risk management process to facilitate, control and to monitor these risks. The board has approved and monitors this risk management process, inclusive of documented treasury policies, counterpart limits, controlling and reporting structures.
	Controlling risk in the company
	The Executive Committee and the Treasury Committee are responsible for risk management activities within the company. The Treasury Committee, chaired by the independent chairman of the AngloGold Ashanti Audit and Corporate Governance Committee, comprising executive members and treasury executives, reviews and recommends to the Executive Committee all treasury counterparts, limits, instruments and hedge strategies. The treasurer is responsible for managing investment, gold price, currency, liquidity and credit risk. Within the treasury function, there is an independent risk function, which monitors adherence to treasury risk management policy and counterpart limits and provides regular and detailed management reports.
	The financial risk management objectives of the company are defined as follows:
Safeguarding the company core earnings stream from its major assets through the effective control and management of gold price risk, foreign exchange risk and interest rate risk; Effective and efficient usage of credit facilities in both the short and long term through the adoption of reliable liquidity management planning and procedures; Ensuring that investment and hedging transactions are undertaken with creditworthy counterparts; Ensuring that all contracts and agreements related to risk management activities are coordinated, consistent throughout the company and comply where necessary with all relevant regulatory and statutory requirements.
	Gold price and currency risk and cash flow hedging
	Gold price risk arises from the risk of an adverse effect on current or future earnings resulting from fluctuations in the price of gold. The gold market is predominately priced in US dollars which exposes the company to the risk that fluctuations in the SA rand/US dollar exchange rates may also have an adverse effect on current or future earnings.
	A number of products, including derivatives, are used to manage well-defined gold price and foreign exchange risks that arise out of the company's core business activities. Forward-sales contracts and call and put options are used by the company to protect itself from downward fluctuations in the gold price. These derivatives may establish a minimum price for a portion of future production while the company maintains the ability to benefit from increases in the gold price for the majority of future gold production.
	Some of the instruments described above are designated and accounted for as cash flow hedges. The hedge forecast transactions are expected to occur over the next 10 years, in line with the maturity dates of the hedging instruments and will affect profit and loss simultaneously in an equal and opposite way. The fair value of all instruments so designated at the balance sheet date is negative R878m.
	Net delta open hedge position as at 31 December 2005
	The company had the following net forward-pricing commitments outstanding against future production.
	Summary: All open contracts in the company's commodity hedge position as at 31 December 2005
	Year		2006	2007	2008	2009	2010	2011-2015	Total
	US Dollar/Gold
	Forward contracts
	Amount (kg)		(10,755)⁽¹⁾	106	4,588	5,964	3,437	7,527	10,867
	$/oz		$363	$810	$386	$440	$422	$505	$537
	Put options purchased
	Amount (kg)		4,354						4,354
	$/oz		$372						$372
	Put options sold
	Amount (kg)		6,532		855	1,882	1,882	7,527	18,678
	$/oz		$389		$390	$400	$410	$435	$411
	Call options purchased
	Amount (kg)		10,202	4,354					14,556
	$/oz		$343	$336					$341
	Call options sold
	Amount (kg)		21,675	18,203	18,390	20,147	18,833	37,013	134,261
	$/oz		$383	$371	$384	$404	$409	$483	$416
	Rand/Gold
	Forward contracts
	Amount (kg)			2,449		933			3,382
	R/kg			R97,520		R116,335			R102,711
	Put options purchased
	Amount (kg)		1,875						1,875
	R/kg		R93,602						R93,602
	Put options sold
	Amount (kg)		2,333						2,333
	R/kg		R93,713						R93,713
	Call options sold
	Amount (kg)		3,306	311		2,986	2,986	2,986	12,575
	R/kg		R102,447	R108,123		R202,054	R216,522	R230,990	R183,851
	Total net gold
	Delta (kg) ⁽²⁾		1,711	15,732	21,679	25,471	20,850	38,484	123.927
	Delta (oz) ⁽²⁾		55,010	505,795	696,995	818,910	670,342	1,237,288	3,984,340
	⁽¹⁾	Indicates a long position resulting from forward purchase contracts. The company enters into forward purchase contracts as part of its strategy to actively manage and reduce the size of the hedge book.
	⁽²⁾	The delta of the hedge position indicated above, is the equivalent gold position that would have the same marked-to-market sensitivity for a small change in the gold price. This is calculated using the Black-Scholes option formula with the ruling market prices, interest rates and volatilities as at 31 December 2005.

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	Summary: All open contracts in the company's currency hedge position as at 31 December 2005
	Year		2006	2007	2008	2009	2010	2011-2015	Total
	Rand/US Dollar (000)
	Put options purchased
	Amount ($)		60,000						60,000
	R per $		R6.89						R6.89
	Put options sold
	Amount ($)		60,000						60,000
	R per $		R6.56						R6.56
	Call options sold
	Amount ($)		60,000						60,000
	R per $		R7.28						R7.28
	The mix of hedging instruments, the volume of production hedged and the tenor of the hedging book is continually reviewed in the light of changes in operational forecasts, market conditions and the company's hedging policy.
	Forward sales contracts require the future delivery of gold at a specified price.
	A put option gives the put buyer the right, but not the obligation, to sell gold to the put seller at a predetermined price on a predetermined date.
	A call option gives the call buyer the right, but not the obligation, to buy gold from the call seller at a predetermined price on a predetermined date.
	Interest rate and liquidity risk
	Refer note 40 in group financial statements.

Cash maturity profile
Maturity date	Currency	Fixed rate investment amount million	Effective rate %	Floating rate investment amount million	Effective rate %
All less than one year	ZAR			12	5.5

Borrowings maturity profile (note 19)		Within one year		Between one and five years
	Currency	Borrowing amount million	Effective rate %	Borrowing amount million	Effective rate %
	ZAR	878⁽¹⁾	7.4	1,989	10.5

Interest rate risk		Within one year		Between one and five years
	Currency	Borrowing amount million	Effective rate %	Borrowing amount million	Effective rate %
	ZAR	878⁽¹⁾	7.4	1,989	10.5
⁽¹⁾Includes R73m interest accrual on corporate bond as at 31 December 2005.

Interest rate swap Refer note 40 in group financial statements.

Credit risk Refer note 40 in group financial statements.

	Fair value of financial instruments
	The estimated fair values of financial instruments are determined at discrete points in time based on relevant market information. These estimates involve uncertainties and cannot be determined with precision. The estimated fair values of the company's financial instruments as at 31 December 2005 are as follows:
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	Type of instrument
		2005		2004
	Figures in million	Carrying amount	Fair value	Carrying Amount	Fair Value
	SA Rands
	Financial assets
	Other investments (note 11)	2	2	2	2
	Other non-current assets (note 14)	9	8	10	9
	Trade and other receivables (note 15)	243	243	210	210
	Cash restricted for use	6	6	6	6
	Cash and cash equivalents (note 16)	12	12	92	92
	Financial liabilities
	Borrowings (note 18)	2,867	2,993	2,057	2,207
	Trade and other payables (note 22)	706	706	858	858
	Derivatives comprise the following:	(1,801)	(4,627)	(270)	(2,158)
	Forward sale commodity contracts	(423)	(423)	173	121
	Option contracts	(1,387)	(4,213)	(482)	(2,318)
	Foreign exchange contracts	-	-	(3)	(3)
	Foreign exchange option contracts	12	12	(3)	(3)
	Interest rate swaps	(3)	(3)	45	45
	The fair value amounts include off balance sheet normal sale exempted contracts, which are not carried on the balance sheet and excluded from the carrying amount. All other derivatives are carried at fair value.
	The amounts in the tables above do not necessarily agree with the totals in the notes referenced as only financial assets and financial liabilities are shown.

	Type of instrument
		2005
	Figures in million	Normal sale exempted	Cash flow hedge accounted	Non-hedge accounted	Total
	SA Rands
	Derivatives comprise the following:	(2,826)	(878)	(923)	(4,627)
	Forward sale commodity contracts	-	(856)	433	(423)
	Option contracts	(2,826)	(22)	(1,365)	(4,213)
	Foreign exchange contracts	-	-	-	-
	Foreign exchange option contracts	-	-	12	12
	Interest rate swaps	-	-	(3)	(3)

		2004
	Figures in million	Normal sale exempted	Cash flow hedge accounted	Non-hedge accounted	Total
	SA Rands
	Derivatives comprise the following:	(1,888)	(502)	232	(2,158)
	Forward sale commodity contracts	(52)	(481)	654	121
	Option contracts	(1,836)	(21)	(461)	(2,318)
	Foreign exchange contracts	-	-	(3)	(3)
	Foreign exchange option contracts	-	-	(3)	(3)
	Interest rate swaps	-	-	45	45

	Derivative maturity profile
		2005
	Figures in million	Total	Assets	Liabilities
	SA Rands
	Total	(1,801)	2,327	(4,128)
	Less: Amounts to mature within 12 months of balance sheet date	1,260	(2,091)	3,351
	Amounts to mature between one and two years	155	(182)	337
	Amounts to mature between two and five years	386	(54)	440
	Amounts to mature thereafter	-	-	-

		2004
	Figures in million	Total	Assets	Liabilities
	SA Rands
	Total	(270)	3.226	(3,496)
	Less: Amounts to mature within 12 months of balance sheet date	308	(2,260)	2,568
	Amounts to mature between one and two years	(89)	(635)	546
	Amounts to mature between two and five years	13	(331)	344
	Amounts to mature thereafter	(38)	-	(38)
	The following methods and assumptions were used to estimate the fair value of each class of financial instrument:
	Trade and other receivables, cash restricted for use, cash and cash equivalents and trade and other payables
	The carrying amounts approximate fair value because of the short-term duration of these instruments.
	Other investments and other non-current assets
	Other investments are carried at amortised cost which approximates fair value. The fair value of other non-current assets has been calculated using market interest rates.
	Borrowings
	The fair value of listed fixed rate debt is shown at its closing market value as at 31 December 2005. The remainder of debt re-prices on a short-term floating rate basis, and accordingly the carrying amount is considered to approximate fair value.
	Derivatives
	The fair values of derivatives are estimated based on the ruling market prices, volatilities and interest rates as at 31 December 2005.
	The company uses the Black-Scholes option pricing formula to value option contracts. One of the inputs into the model is the level of volatility. These volatility levels are themselves not exchange traded and are not observable generally in the market. The company uses volatility input supplied by leading market participants (international banks). The company believes that no other possible alternative would result in significantly different fair value estimations.
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27	Changes to comparative information

				Change in accounting policies			Reclassifications
	SA Rands million		Balance per annual financial statements 2004	Change in accounting treatment for actuarial gains and losses	Adoption of IAS 21 ⁽¹⁾	Adoption of IAS 28 (account -ing for associates) ⁽²⁾	Other reclassifi- cations	Ergo treated as a dis- continued opera- tion ⁽³⁾	Rounding	Revised 2004 com- parative
	Income statement
	Revenue		8,185	-	-	-	-	(591)	-	7,594
	Gold income		7,749	-	-	-	-	(560)	-	7,189
	Cost of sales		(6,774)	-	-	-	-	628	-	(6,146)
	Non-hedge derivative loss ⁽⁴⁾		-	-	-	-	(523)	-	-	(523)
	Gross profit		975	-	-	-	(523)	68	-	520
	Corporate administration and other expenses		(297)	-	-	-	-	-	(1)	(298)
	Market development costs		(79)	-	-	-	-	-	-	(79)
	Exploration costs		(144)	-	-	-	-	-	-	(144)
	Amortisation of intangible assets		(5)	-	-	4	-	-	1	-
	Impairment of tangible assets and investments		-	-	-	(4)	-	-	-	(4)
	Non-hedge derivative loss ⁽⁴⁾		(523)	-	-	-	523	-	-	-
	Other net operating expenses		(27)	-	-	-	-	-	-	(27)
	Operating profit		(100)	-	-	-	-	68	-	(32)
	Interest received		183	-	-	-	-	-	-	183
	Exchange gain		-	-	78	-	-	-	-	78
	Other net income		1	-	-	(1)	-	-	-	-
	Finance costs and unwinding of decommissioning and restoration obligation		(276)	-	-	-	-	-	-	(276)
	Fair value gain on interest rate swaps		12	-	-	-	-	-	-	12
	Loss before taxation		(180)	-	78	(1)	-	68	-	(35)
	Taxation		641	-	-	-	-	5	-	646
	Loss after taxation from continuing operations		461	-	78	(1)	-	73	-	611
	Discontinued operations		-	-	-	-	-	(73)	-	(73)
	Profit for the year		461	-	78	(1)	-	-	-	538
	⁽¹⁾	In the company financial statements, as a result of adopting IAS 21 (revised), exchange differences arising on a monetary item that forms part of the company's net investment in a foreign operation is recognised in the income statement. The effect of this change in accounting policy is that in the company financial statements for 2004, R78m has been recognised in the income statement instead of in equity.
	⁽²⁾	Share of associate's profit reclassified from other net income to comply with IAS 28.
	⁽³⁾	Ergo reclassified as a discontinued operation from 1 February 2005 as it has reached the end of its useful life.
	⁽⁴⁾	Non-hedge derivative loss reclassified to be included in gross profit.

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			Change in accounting policies				Reclassifications
	SA Rands million		Balance per annual financial statements 2004	Change in accounting treatment for actuarial gains and losses ⁽¹⁾	Adoption of IAS 21	Adoption of IAS 28 (account- ing for associates) ⁽²⁾	Other reclassifi- cations	Ergo treated as a dis- continued opera- tion	Rounding	Revised 2004 com- parative
	Balance sheet
	ASSETS
	Non-current assets
	Tangible assets		10,644	-	-	-	-	-	-	10,644
	Investments in associates		43	-	-	(6)	-	-	-	37
	Investment in subsidiaries		14,813	-	-	-	-	-	-	14,813
	Other investments		17	-	-	-	-	-	-	17
	Investment in Environmental Rehabilitation Trust Fund		265	-	-	-	-	-	-	265
	Intra-group balances		144	-	-	-	-	-	-	144
	Derivatives		966	-	-	-	-	-	-	966
	Other non-current assets ⁽³⁾		53	(113)	-	-	69	-	-	9
			26,945	(113)	-	(6)	69	-	-	26,895
	Current assets
	Inventories		420	-	-	-	-	-	-	420
	Trade and other receivables ⁽⁴⁾		377	-	-	-	(6)	-	(1)	370
	Derivatives		2,260	-	-	-	-	-	-	2,260
	Current portion of other non-current assets		1	-	-	-	-	-	-	1
	Cash restricted for use ⁽⁴⁾		-	-	-	-	6	-	-	6
	Cash and cash equivalents		92	-	-	-	-	-	-	92
			3,150	-	-	-	-	-	(1)	3,149
	Total assets		30,095	(113)	-	(6)	69	-	(1)	30,044
	EQUITY AND LIABILITIES
	Share capital and premium		19,300	-	-	-	-	-	-	19,300
	Retained earnings and other reserves		(1,749)	(125)	-	(6)	-	-	(1)	(1,881)
	Total equity		17,551	(125)	-	(6)	-	-	(1)	17,419
	Non-current liabilities
	Borrowings		1,984	-	-	-	-	-	-	1,984
	Environmental rehabilitation provisions		517	-	-	-	-	-	-	517
	Provision for pension and post-retirement benefits ⁽³⁾		849	75	-	-	69	-	-	993
	Intra-group balances		1,338	-	-	-	-	-	1	1,339
	Derivatives		928	-	-	-	-	-	-	928
	Deferred taxation		2,821	(63)	-	-	-	-	-	2,758
			8,437	12	-	-	69	-	1	8,519
	Current liabilities
	Trade and other payables		1,184	-	-	-	-	-	-	1,184
	Current portion of borrowings		73	-	-	-	-	-	-	73
	Derivatives		2,569	-	-	-	-	-	(1)	2,568
	Taxation		281	-	-	-	-	-	-	281
			4,107	-	-	-	-	-	(1)	4,106
	Total liabilities		12,544	12	-	-	69	-	-	12,625
	Total equity and liabilities		30,095	(113)	-	(6)	69	-	(1)	30,044
	⁽¹⁾	AngloGold Ashanti has adopted IAS 19 (revised) whereby actuarial gains and losses are recognised through equity reserves.
	⁽²⁾	Investment in associate recorded at cost less impairment, with the adoption of IAS 28.
	⁽³⁾	Reclassification of AngloGold Ashanti Pension Fund credit balance from other non-current assets to provisions for pension and post-retirement benefits.
	⁽⁴⁾	Reallocation of Disaster Compensation Fund from trade and other receivables to cash restricted for use.

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			Change in accounting policies				Reclassifications
	SA Rands million		Balance per annual financial statements 2004	Change in accounting treatment for actuarial gains and losses	Adoption of IAS 21	Adoption of IAS 28 (account- ing for associates)	Other reclassifi- cations	Ergo treated as a dis- continued opera- tion ⁽¹⁾	Revised 2004 com- parative
	Cash flow
	Cash flows from operating activities
	Receipts from customers ⁽²⁾		8,048	-	-	-	(123)	(591)	7,334
	Payments to suppliers and employees		(6,524)	-	-	-	154	603	(5,767)
	Cash generated from operations		1,524	-	-	-	31	12	1,567
	Cash utilised from discontinued operations		-	-	-	-	-	(12)	(12)
	Interest received ⁽³⁾		142	-	-	-	(142)	-	-
	Environmental contributions ⁽⁴⁾		(35)	-	-	-	35	-	-
	Finance costs ⁽³⁾		(276)	-	-	-	276	-	-
	Net cash inflow from operating activities		1,355	-	-	-	200	-	1,555
	Cash flows from investing activities
	Capital expenditure
	- project expenditure		(1,022)	-	-	-	-	-	(1,022)
	- stay-in-business expenditure		(1,083)	-	-	-	(67)	-	(1,150)
	Proceeds from disposal of tangible assets		4	-	-	-	-	-	4
	Other investments acquired ⁽⁴⁾		(234)	-	-	-	(35)	-	(269)
	Intra-group loans		2,000	-	-	-	-	-	2,000
	Interest received⁽³⁾		-	-	-	-	142	-	142
	Repayment of loans advanced		402	-	-	-	-	-	402
	Utilised in hedge restructure		(703)	-	-	-	-	-	(703)
	Net cash outflow from investing activities		(636)	-	-	-	40	-	(596)
	Cash flows from financing activities
	Proceeds from issue of share capital		22	-	-	-	-	-	22
	Share issue expenses		(1)	-	-	-	-	-	(1)
	Proceeds from borrowings		229	-	-	-	-	-	229
	Repayment of borrowings		(1,794)	-	-	-	-	-	(1,794)
	Finance costs ^{(3) (5)}		-	-	-	-	(240)	-	(240)
	Dividends paid		(1,197)	-	-	-	-	-	(1,197)
	Proceeds from hedge restructure		228	-	-	-	-	-	228
	Net cash outflow from financing activities		(2,513)	-	-	-	(240)	-	(2,753)
	Net decrease in cash and cash equivalents		(1,794)	-	-	-	-	-	(1,794)
	Cash and cash equivalents at beginning of year		1,886	-	-	-	-	-	1,886
	Net cash and cash equivalents at end of year		92	-	-	-	-	-	92
	⁽¹⁾	Ergo reclassified as a discontinued operation from 1 February 2005 as it has reached the end of its useful life.
	⁽²⁾	Effect of reallocation within trade and other receivables on receipts from customers.
	⁽³⁾	Interest received and finance costs have been reclassified from operating activities to investing and finance activities respectively.
	⁽⁴⁾	Contributions to the Environmental Rehabilitation Trust Fund reallocated to other investments acquired.
	⁽⁵⁾	Reallocation of non-cash portion of finance costs to other non-cash movements.

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			Change in accounting policies				Reclassifications
	SA Rands million		Balance per annual financial statements 2004	Change in accountin treatment for actuarial gains and losses	Adoption of IAS 21 ⁽¹⁾	Adoption of IAS 28 (account- ing for associates) ⁽²⁾	Other reclassifi- cations	Ergo treated as a dis- continued opera- tion ⁽³⁾	Revised 2004 com- parative
	Cash generated from operations
	Profit before taxation		(180)	-	78	(1)	-	68	(35)
	Adjusted for:
	Non-cash movements ^{(4) (5)}		98	-	(78)	-	27	(30)	17
	Movement on non-hedge derivatives		986	-	-	-	-	(26)	960
	Amortisation of tangible assets		753	-	-	-	-	-	753
	Deferred stripping		-	-	-	-	-	-	-
	Interest receivable		(183)	-	-	-	-	-	(183)
	Profit from associates after taxation		(1)	-	-	1	-	-	-
	Finance costs and unwinding of decommissioning obligation		276	-	-	-	-	-	276
	Amortisation of intangible assets		4	-	-	-	-	-	4
	Profit on disposal of assets		(4)	-	-	-	4	-	-
	Movements in working capital		(225)	-	-	-	-	-	(225)
			1,524	-	-	-	31	12	1,567
	Movements in working capital:
	Increase in inventories		(30)	-	-	-	-	-	(30)
	Decrease in trade and other receivables		69	-	-	-	-	-	69
	Decrease in trade and other payables		(264)	-	-	-	-	-	(264)
			(225)	-	-	-	-	-	(225)
	⁽¹⁾	In the company financial statements, as a result of adopting IAS 21 (revised), exchange differences arising on a monetary item that forms part of the company's net investment in a foreign operation is recognised in the income statement. The effect of this change in accounting policy is that in the company financial statements for 2004, R78m has been recognised in the income statement instead of in equity.
	⁽²⁾	Share of associates profit reclassified from other net income to comply with IAS 28.
	⁽³⁾	Ergo reclassified as a discontinued operation from 1 February 2005 as it has reached the end of its useful life.
	⁽⁴⁾	Reallocation of non-cash portion of finance costs to other non-cash movements.
	⁽⁵⁾	Reallocation of interest capitalised from other non-cash movements to capital expenditure.

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	Country of incor- poration	Nature of business	Shares held		Percentage held		Book value		Net loan account
	Country of incor- poration	Nature of business	2005	2004	2005 %	2004 %	2005 Rm	2004 Rm	2005 Rm	2004 Rm
Direct investments
Advanced Mining Software Limited	16	C	40,000	40,000	100	100	2	2	(9)	(12)
AGRe Insurance Company Limited	16	F	2	2	100	100	14	14	-	-
AngloGold American Investments Limited	4	B	1,001	1,001	100	100	849	849	(44)	(39)
AngloGold Ashanti USA Incorporated	19	B	100	100	100	100	768	768	-	-
			500*	500*	100	100	655	655	-	-
AngloGold Health Service (Pty) Limited	16	E	8	8	100	100	-	-	54	37
AngloGold Ashanti Holdings plc	9	B	2,077,313,678	2,077,313,678	100	100	11,195	11,192	(496)	(393)
AngloGold Offshore Investments Limited	4	B	5,000,000	5,000,000	100	100	272	272	-	-
Eastvaal Gold Holdings Limited	16	B	454,464,000	454,464,000	100	100	917	917	(602)	(604)
Masakhisane Investment Limited	16	B	100	100	100	100	-	-	4	6
Nuclear Fuels Corporation of SA (Pty) Limited	16	D	1,450,000	1,450,000	100	100	7	7	(162)	(63)
Rand Refinery Limited **	16	G	208,471	208,471	53.03	53.03	116	116	-	-
Southvaal Holdings Limited (in voluntary liquidation)	16	B	26,000,000	26,000,000	100	100	3	3	(3)	(3)
Indirect investments
AG Mali Holdings 1 Limited	4	B	10,002	10,002	100	100	-	-	-	-
AG Mali Holdings 2 Limited	4	B	10,002	10,002	100	100	-	-	-	-
AngloGold Argentina Limited	4	B	1	1	100	100	-	-	-	-
AngloGold Argentina S.A.	1	B	1,331,093	1,331,093	100	100	-	-	-	-
AngloGold Ashanti Australia Limited	2	B	257,462,077	257,462,077	100	100	-	-	-	21
AngloGold Ashanti (Bibiani) Limited	7	A	4,500	4,500	100	100	-	-	-	-
AngloGold Ashanti (Colorado) Corp.	19	B	1,250	1,250	100	100	-	-	-	-
AngloGold Ashanti Exploration (Ghana) Limited	7	A	2	2	100	-		-	(2)	-
AngloGold Ashanti (Ghana) Limited	7	A	132,419,585	132,419,585	100	100	-	-	7	2
AngloGold Ashanti Holdings plc	9	B	1,024,840,886*	1,024,840,886*	100	-		-	-	-
AngloGold Ashanti (Iduapriem) Limited	7	A	53,016	53,016	80	80	-	-	-	-
AngloGold Ashanti Mineração Ltda.	5	A	22,194,302,378	22,194,302,378	100	-		-	-	-
AngloGold Ashanti (Nevada) Corp.	19	B	100	100	100	100	-	-	-	-
AngloGold Ashanti North America Inc.	19	B	7,902	7,902	100	100	-	-	33	4
AngloGold Australia Investment Holdings Limited	4	B	1,000	1,000	100	100	-	-	-	-
AngloGold Australia (Sunrise Dam) Pty Limited	2	A	2	2	100	100	-	-	-	-
AngloGold Ashanti Brasil Ltda.	5	B	8,827,437,875	8,827,437,875	100	100	-	-	-	-
AngloGold Brazil Limited	4	B	1	1	100	100	-	-	-	-
AngloGold CV 1 Limited	4	B	11,002	11,002	100	100	-	-	-	-
AngloGold CV 2 Limited	4	B	1,002	1,002	100	100	-	-	-	-
AngloGold CV 3 Limited	4	B	1,002	1,002	100	100	-	-	-	-
AngloGold Finance Australia Holdings Limited	13	B	2	2	100	100	-	-	-	-
AngloGold Finance Australia Limited	13	B	2	2	100	100	-	-	-	-
AngloGold Geita Holdings Limited	4	B	3,513	3,513	100	100	-	-	-	-
AngloGold Investments Australasia Limited	4	B	1,000	1,000	100	100	-	-	-	-
AngloGold Investments Australia Pty Ltd	2	B	1	1	100	100	-	-	-	13
AngloGold Investments (Sadex) Limited	4	B	1,000'A'	1,000'A'	100	100	-	-	-	-
AngloGold Morila Holdings Limited	4	B	1,000	1,000	100	100	-	-	-	-
AngloGold Namibia (Pty) Ltd	14	A	10,000	10,000	100	100	-	-	-	-
AngloGold North American Holdings Limited	4	B	1	1	100	100	-	-	-	-
AngloGold Offshore Investments Limited	4	B	422,510,000*	422,510,000*	100	100	-	-	-	-
AngloGold South America Limited	4	B	488,000	488,000	100	100	-	-	(172)	(153)
AngloGold South American Holdings Limited	4	B	1	1	100	100	-	-	-	-
Ashanti Goldfields Belgium S.A.	3	B	2,500	2,500	100	100	-	-	-	-
Ashanti Goldfields (Cayman) Limited	6	B	2	2	100	100	-	-	-	-
Ashanti Goldfields Holding (Luxembourg) S.A.	11	B	3,000,000	3,000,000	100	100	-	-	-	-
Ashanti Goldfields Kilo Sarl	21	H	15,520	15,520	86.22	86.22	-	-	5	-
Ashanti Goldfields Services Limited	18	B	588,409	588,409	100	100	-	-	-	-
Ashanti Goldfields Teberebie Limited	6	B	2	2	100	100	-	-	-	-
Ashanti Goldfields Zimbabwe Limited	20	A	-	265,570,717	-	100	-	-	-	-
Ashanti Treasury Services Limited	9	I	250,000	250,000	100	100	-	-	(7)	-
Australian Mining & Finance Pty Limited	2	B	48	48	100	100	-	-	-	-
Cerro Vanguardia S.A.	1	A	13,875,000	13,875,000	92.50	92.50	-	-	-	-
Chevaning Mining Company Limited	18	B	1,000	1,000	100	100	-	-	-	-
Cluff Holdings Pvt Limited	20	B	-	100	-	100	-	-	-	-
Cluff Mineral Exploration Limited	18	B	500,000	500,000	100	100	-	-	-	-
Cluff Oil Limited	18	B	19,646,377	19,646,377	100	100	-	-	-	-
Cluff Resources Limited	18	B	93,638,562	93,638,562	100	100	-	-	-	-
Cripple Creek & Victor Gold Mining Company (USA joint venture)		A	-	-	67	67	-	-	-	-
Erongo Holdings Limited	4	B	13,334'A'	13,334'A'	100	100	-	-	(12)	(10)
Geita Gold Mining Limited	17	A	2	2	100	100	-	-	-	-
Golden Shamrock Mines Limited	2	B	2,000,000	2,000,000	100	100	-	-	-	-
GSM Gold S.A.	11	B	325,000	325,000	100	100	-	-	-	-
Mineração Serra Grande S.A.	5	A	499,999,997	499,999,997	50	50	-	-	-	-
Morila Limited	10	B	1	1	50	50	-	-	-	-
Pioneer Goldfields Limited	8	B	75,000,000	75,000,000	100	100	-	-	-	-
Sadiola Exploration Limited	4	B	5,000 'A'	5,000 'A'	50	50	-	-	-	-
Societé Ashanti Goldfields de Guinée S.A.	15	A	3,486,134	3,486,134	85	85	-	-	1	-
Teberebie Goldfields Limited	7	A	1,860,000	1,860,000	90	90	-	-	-	-
Joint ventures
Nufcor International Limited **	18	D	3,000,000	3,000,000	50	50	18	18	(2)	-
Société des Mines de Morila S.A.	12	A	400	400	40	40	-	-	-	-
Société d'Exploitation des Mines d'Or de Sadiola S.A.	12	A	38,000	38,000	38	38	-	-	-	-
Société d'Exploitation des Mines d'Or de Yatela S.A.	12	A	400	400	40	40	-	-	-	-
BGM Management Company Pty Ltd	2	A	3'B'	3'B'	33.33	33.33	-	-	-	-
							14,816	14,813	(1,407)	(1,194)

Nature of business
A -	Mining
B -	Investment holding
C -	Software development
D -	Market agent
E -	Health care
F -	Short-term insurance and re-assurance
G -	Precious metal refining
H -	Exploration
I -	Treasury

Countries of incorporation
1	Argentina	8	Guernsey	15	Republic of Guinea
2	Australia	9	Isle of Man	16	Republic of South Africa
3	Belgium	10	Jersey	17	Tanzania
4	British Virgin Islands	11	Luxembourg	18	United Kingdom
5	Brazil	12	Mali	19	United States of America
6	Cayman Islands	13	Malta	20	Zimbabwe
7	Ghana	14	Namibia

*	Indicates preference shares
**	The statutory year-ends of Rand Refinery Limited and Nufcor International Limited are 30 September and 30 June respectively. The management accounts of Rand Refinery Limited and Nufcor International Limited for the periods ended 30 September and 31 December respectively, have been included in the group's results for the year ended 31 December 2005.
In terms of IAS 21, the Environmental Rehabilitation Trust Fund is deemed to be a subsidiary.

The aggregate interest in the net profits and losses in subsidiaries is as follows:
$ million	2005	2004
Profit attributable to equity shareholders	167	323
Losses attributable to equity shareholders	(396)	(320)
	(229)	3

Notes to company financial statements | Next > Investment in principal subsidiaries and joint venture interests...

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Annual Report 2005

Financials

Company financial statements

Notes to the company financial statements

1

Revenue

2

Cost of sales

3

Other net operating expenses

4

Operating special items

5

Finance costs and unwinding of decommissioning and restoration obligations

6

Profit (loss) before taxation

7

Employee benefits

8

Taxation

9

Tangible assets

10

Investment in associate

11

Other investments

12

Inventories

13

Investment in Environmental Rehabilitation Trust Fund

14

Other non-current assets

15

Trade and other receivables

16

Cash and cash equivalents

17

Retained earnings and other reserves

18

Borrowings

19

Environmental rehabilitation provisions

20

Provision for pension and post-retirement benefits

21

Deferred taxation

22

Trade and other payables

23

Cash generated from operations

24

Related parties

25

Contractual commitments and contingencies

26

Financial risk management activities

27

Changes to comparative information