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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF
THE SECURITIES EXCHANGE ACT OF 1934
Report on Form 6-K dated March 31, 2015
Commission File Number 1-14846
AngloGold Ashanti Limited
(Name of registrant)
76 Jeppe Street
Newtown, 2001
(P.O. Box 62117, Marshalltown, 2107)
South Africa
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form
20-F or Form 40-F.
Form 20-F X         Form 40-F
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by
Regulation S-T Rule 101(b)(1):
Yes
No X
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by
Regulation S-T Rule 101(b)(7):
Yes
No X
Indicate by check mark whether the registrant by furnishing the information contained in this Form
is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the
Securities Exchange Act of 1934.
Yes             No X
Enclosure:    ANGLOGOLD ASHANTI ANNUAL FINANCIAL STATEMENTS FOR THE
YEAR ENDED DECEMBER 31, 2014
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ANNUAL FINANCIAL STATEMENTS 2014




















































ANNUAL
FINANCIAL
STATEMENTS

2014
A TRULY
GLOBAL
PRODUCER OF GOLD
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OUR
MISSION
To create value for our shareholders,
our employees and our business and
social partners through safely and
responsibly exploring, mining and
marketing our products. Our primary
focus is gold, but we will pursue
value creating opportunities in other
minerals where we can leverage our
existing assets, skills and experience
to enhance the delivery of value.



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ANNUAL FINANCIAL STATEMENTS 2014
1
OUR VALUES
People are the Business… Our Business is people
Safety is our first value.
We place people first and correspondingly put the highest
priority on safe practices and systems of work. We are
responsible for seeking out new and innovative ways to
prevent injury and illness in our business and to ensure
that our workplaces are free of occupational injury and
illness. We live each day for each other and use our
collective commitment, talents, resources and systems to
deliver on our most important commitment... to care.
We treat each other with dignity and respect.
We believe that individuals who are treated with respect
and who are entrusted to take responsibility respond by
giving their best. We are honest with ourselves and
others, and we deal ethically with all of our business and
social partners. We seek to preserve people's sense of
self-worth in all our interactions, respecting them for who
they are and valuing the unique contribution that they can
make to our business success.
We value diversity.
We aim to be a global leader with the right people for the
right jobs. We promote inclusion and team work, deriving
benefit from the rich diversity of the cultures, ideas,
experiences and skills that each employee brings to the
business.
We are accountable for our actions and undertake
to deliver on our commitments.
We are focused on delivering results and we do what we
say we will do. We accept responsibility and hold
ourselves accountable for our work, our behaviour, our
ethics and our actions. We aim to deliver high
performance outcomes and undertake to deliver on our
commitments to our colleagues, business and social
partners, and our investors.
We want the communities and societies in which
we operate to be better off for AngloGold Ashanti
having been there.
We uphold and promote fundamental human rights
where we do business. We contribute to building
productive, respectful and mutually beneficial
partnerships in the communities in which we operate. We
aim to leave a legacy of enduring value.
We respect the environment.
We are committed to continually improving our processes
in order to prevent pollution, minimise waste, increase
our carbon efficiency and make efficient use of natural
resources. We will develop innovative solutions to
mitigate environmental and climate risks.
OUR VISION
To be the
LEADING
mining company
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ANNUAL FINANCIAL STATEMENTS 2014
2
GUIDE TO REPORTING
AngloGold Ashanti Limited (AngloGold Ashanti) publishes a suite of reports
to record its overall performance annually. The Annual Financial Statements
2014 addresses our statutory reporting requirements.
The 2014 suite of reports includes:
·
Integrated Report 2014, the primary report;
·
Annual Financial Statements 2014;
·
Sustainable Development Report 2014 (1);
·
Mineral Resource and Ore Reserve Report 2014;
·
Operational profiles 2014 (2); and
·
Notice of Annual General Meeting and Summarised Financial Information 2014 (Notice of Meeting).
In compliance with the rules governing its listing on the New York Stock Exchange, AngloGold Ashanti prepares a report on
Form 20-F which is filed annually with the United States’ Securities and Exchange Commission (SEC).
These reports are all available on our annual report portal at www.aga-reports.com.
FOR NOTING:
The following key parameters should be noted in respect of our reports:
·
Production is expressed on an attributable basis unless otherwise indicated;
·
Unless otherwise stated, $ or dollar refers to US dollars throughout this suite of reports;
·
Group and company are used interchangeably, except for in the group and company annual financial statements; and
·
Statement of financial position and balance sheet are used interchangeably.





























(1)
This report is an online report. A summary report is available as a pdf.
(2)
The operational profiles will be available on the website by the end of April 2015.
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ANNUAL FINANCIAL STATEMENTS 2014
3
CONTENTS
P4-14
GOVERNANCE
4
Audit and Risk Committee -
Chairman’s letter
MANANGEMENT
DISCUSSION
8          CFO Review
P15-179
FINANCIAL
STATEMENTS
15        Directors’ approval
15        Secretary's certificate
15
Affirmation of financial
statements
16        Directors’ report
26
Remuneration and Human
Resources Committee –
Chairman’s letter
27        Remuneration report
41
Independent auditor's report
43        Group financial statements
146      Company financial
statements
178      Principal subsidiaries and
operating entities
178      Shareholders at
31 December 2014
179      Shareholder spread at
31 December 2014
P180-187
OTHER
180      Shareholders’ information
184      Glossary of terms and
abbreviations
187      Administrative information





Forward–looking statements

Certain statements contained in this document, other than statements of historical fact, including, without limitation, those concerning the
economic outlook for the gold mining industry, expectations regarding gold prices, production, cash costs, all-in sustaining costs, all-in costs,
cost savings and other operating results, return on equity, productivity improvements, growth prospects and outlook of AngloGold Ashanti’s
operations, individually or in the aggregate, including the achievement of project milestones, commencement and completion of commercial
operations of certain of AngloGold Ashanti’s exploration and production projects and the completion of acquisitions, dispositions or joint
venture transactions, AngloGold Ashanti’s liquidity and capital resources and capital expenditures and the outcome and consequence of any
potential or pending litigation or regulatory proceedings or environmental health and safety issues, are forward-looking statements regarding
AngloGold Ashanti’s operations, economic performance and financial condition. These forward-looking statements or forecasts involve known
and unknown risks, uncertainties and other factors that may cause AngloGold Ashanti’s actual results, performance or achievements to differ
materially from the anticipated results, performance or achievements expressed or implied in these forward-looking statements. Although
AngloGold Ashanti believes that the expectations reflected in such forward-looking statements and forecasts are reasonable, no assurance can
be given that such expectations will prove to have been correct. Accordingly, results could differ materially from those set out in the forward-
looking statements as a result of, among other factors, changes in economic, social and political and market conditions, the success of
business and operating initiatives, changes in the regulatory environment and other government actions, including environmental approvals,
fluctuations in gold prices and exchange rates, the outcome of pending or future litigation proceedings, and business and operational risk
management. For a discussion of such risk factors, refer to AngloGold Ashanti’s annual reports on Form 20-F filed with the United States
Securities and Exchange Commission. These factors are not necessarily all of the important factors that could cause AngloGold Ashanti’s
actual results to differ materially from those expressed in any forward-looking statements. Other unknown or unpredictable factors could also
have material adverse effects on future results. Consequently, readers are cautioned not to place undue reliance on forward-looking
statements. AngloGold Ashanti undertakes no obligation to update publicly or release any revisions to these forward-looking statements to
reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events, except to the extent required by
applicable law. All subsequent written or oral forward-looking statements attributable to AngloGold Ashanti or any person acting on its behalf
are qualified by the cautionary statements herein.

This communication may contain certain “Non-GAAP” financial measures. AngloGold Ashanti utilises certain Non-GAAP performance
measures and ratios in managing its business. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the
reported operating results or cash flow from operations or any other measures of performance prepared in accordance with IFRS. In addition,
the presentation of these measures may not be comparable to similarly titled measures other companies may use. AngloGold Ashanti posts
information that is important to investors on the main page of its website at www.anglogoldashanti.com and under the “Investors” tab on the
main page. This information is updated regularly. Investors should visit this website to obtain important information about AngloGold Ashanti.


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ANNUAL FINANCIAL STATEMENTS 2014
4
AUDIT AND RISK COMMITTEE – CHAIRMAN’S LETTER
ROLE AND FOCUS
The Audit and Risk Committee (the Audit Committee) is an independent statutory committee. The committee members were
appointed by the AngloGold Ashanti shareholders at the Annual General Meeting held on 14 May 2014. The Audit Committee
has decision-making authority with regards to its statutory duties and is accountable in this regard to both the board and the
shareholders of AngloGold Ashanti.
The Audit Committee presents this report in accordance with the company’s Memorandum of Incorporation (MOI), the
requirements of the Companies Act, No. 71 of 2008, as amended, (the Companies Act), the recommendations contained in
the third King Report on Governance for South Africa (King III), as well as its formally approved charter that is in line with the
JSE Listings Requirements which is reviewed and approved annually.
It is the Audit Committee’s principal regulatory duty to oversee the integrity of the group’s internal control environment and to
ensure that financial statements comply with International Financial Reporting Standards (IFRS) and fairly present the
financial position of the group and company and the results of their operations.
Management has established and maintains internal controls and procedures, which are reviewed by the Audit Committee
and reported on through regular reports to the board. These internal controls and procedures are designed to identify and
manage, rather than eliminate, the risk of control malfunction and aims to provide reasonable but not absolute assurance that
these risks are well managed and that material misstatements and/or loss will not materialise.
The board assumes ultimate responsibility for the functions performed by the Audit Committee, relating to the safeguarding of
assets, accounting systems and practices and internal control processes.
Composition and Duties
The Audit Committee comprises four independent Non-Executive Directors who collectively possess the skills and knowledge
to oversee and assess the strategies and processes developed and implemented by management to manage the business
within a continually evolving mining environment.
I, Rhidwaan Gasant, was elected as Chairman of the Audit Committee from May 2014 taking over from Prof Wiseman Nkuhlu
who was appointed as Lead Independent Director of AngloGold Ashanti.
As part of a reorganisation of the governance structures within AngloGold Ashanti, the accountability for oversight of risk
management and information technology (IT) governance became part of the mandate of the Audit Committee during 2014.
The Audit Committee’s duties as required by section 94(2) of the Companies Act, King III and JSE Listing requirements are
set out in its board-approved terms of reference which is reviewed and updated annually. These duties were discharged as
follows:
·
confirmed the integrity of the group’s integrated reporting and annual financial statements;
·
nominated for appointment of independent external auditors by the shareholders;
·
reviewed and approved the terms of engagement as contained in the engagement letter of the external auditors;
·
approved the remuneration of the external auditors;
·
pre-approved all non-audit services in line with a formal policy on non-audit services;
·
assessed the internal and external auditors’ independence;
·
assessed the effectiveness of the group’s internal and external audit function;
·
approved the internal audit plan and subsequent changes to the approved plan;
·
reviewed the expertise, experience and performance of the finance function and Chief Financial Officer;
·
ensured that a combined assurance model is applied to provide a coordinated approach to all assurance activities;
·
reviewed developments in reporting standards, corporate governance and best practice;
·
reviewed the adequacy and effectiveness of the group’s enterprise wide risk management policies, processes and
mitigating strategies;
·
monitored the governance of IT and the effectiveness of the group’s information systems; and
·
evaluated the effectiveness of the committee through a self-assessment.
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ANNUAL FINANCIAL STATEMENTS 2014
5
Proceedings and Performance Review
During 2014, the Audit Committee formally met 6 times and attendance at these meetings is set out in the table below:
13 February
17 March
(1)
2 April
(1)
8 May
5 August
28 October
R Gasant
(2)
X
X
X
X
X
X
Prof LW Nkuhlu
(3)
X
X
X
X
X
X
NP January-Bardill
(4)
X
X
X
MJ Kirkwood
X
X
X
X
X
X
R Ruston
(5)
X
X
X
X In attendance
(1)
Special meeting
(2)
Chairman of the Audit Committee from May 2014
(3)
Chairman of the Audit Committee up to April 2014
(4)
Resigned from the Audit Committee April 2014
(5)
Appointed May 2014
The Chief Financial Officer, Chief Accounting Officer, Group General Counsel and Company Secretary, Senior Vice President:
Group Internal Audit, Group Tax Manager, Group Risk Manager, Chief Information Officer, the external auditors, as well as
other assurance providers are invited to attend committee meetings in an ex officio capacity and provide responses to
questions raised by committee members during meetings. The Audit Committee meets separately with management, internal
audit and external audit at every scheduled quarterly meeting. The CEO and CFO meet with the auditors before the meeting
and attends a debrief session with the Audit Committee.
The Audit Committee assessed its effectiveness through the completion of a self-assessment process, results were
discussed, actions taken and processes put in place to address areas identified for improvement.
Subsequent to year-end, Albert Garner and Maria Richter were appointed to the Audit Committee.
HIGHLIGHTS IN 2014
In addition to the execution of the Audit Committee’s statutory duties, set out below are some highlights from 2014:
Focus area
Actions
Financial Statements
Quarterly and annual IFRS
reports
Reviewed and recommended the quarterly and annual IFRS financial statements to the board
for approval and subsequent submission to the JSE, SEC and other stock exchanges as
applicable, after:
·
ensuring that complex accounting areas comply with IFRS;
·
carefully evaluating significant accounting judgements, including but not limited to
environmental rehabilitation provisions, taxation provisions and the valuation of the portfolio
of assets (including impairments) and estimates;
·
discussing the accounting treatment of significant and unusual transactions with
management and the external auditors;
·
reviewing, assessing and approving adjusted and unadjusted audit differences reported by
the external auditors; and
·
considering and approving management’s documented assessment of the company’s going
concern status including key assumptions.
Mineral Resource and Ore Reserve Report
Mineral Resource and Ore
Reserve Report
Reviewed and recommended for approval the annual Mineral Resource and Ore Reserve
Report prepared in accordance with the minimum standards described by the Australasian Code
for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code,
2012 Edition), and also conform to the standards set out in the South African Code for the
Reporting of Exploration Results, Mineral Resources and Mineral Reserves (The SAMREC
Code, 2007 edition and amended July 2009), after:
·
discussing the internal control environment associated with the mineral resource and ore
reserve estimation process;
·
receiving confirmation that the Competent Persons appointed approved the mineral
resources and ore reserves; and
·
reviewing and assessing for reasonableness the year-on-year reconciliation of the mineral
resources and ore reserves.
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ANNUAL FINANCIAL STATEMENTS 2014
6
Focus area
Actions
Corporate Governance
External auditors
Approved the appointment of the external auditors to provide independent limited assurance on
certain sustainability indicators as included in the Sustainable Development Report 2014.
The Audit Committee also monitored the lead engagement partner rotation during 2014.
King III
Monitored the progress and ensured implementation of the requirements of King III. A register
detailing compliance with the principles of King III in 2014 can be found on our website,
www.anglogoldashanti.com.
Subsidiary audit
committees
Monitored the proceedings of relevant statutory subsidiary audit committees during each of its
meetings.
COSO 2013
Monitored the implementation of the COSO 2013 internal control framework which is used as
the basis for expressing an assessment on the effectiveness of internal control over financial
reporting.
Risk management
Reviewed and approved the risk management policies, standards and processes; received and
considered reports from the Group Risk Manager in relation to the key strategic and operational
risks facing the company; and received presentations on emerging risks and topics requiring an
in depth analysis.
IT governance
The committee received and reviewed detailed reports from the Chief Information Officer on the
group’s information and technology framework. The Audit Committee also monitored the
remediation of deficiencies identified during the implementation of SAP and benefits derived
from the SAP implementation.
Sarbanes-Oxley
Compliance (SOX)
The Audit Committee has overseen the SOX compliance efforts of management through
receiving quarterly updates on controls associated with financial reporting and assessed the
final conclusion reached by the Chief Executive Officer and Chief Financial Officer on the
effectiveness of the internal controls over financial reporting.
Compliance
Monitored the development and refinement of the global compliance governance framework that
allows for a systematic risk-based approach for group, regions and operations to identify and
monitor compliance to major laws, regulations, standards and codes. Received regular updates
on the implementation of the framework, including e-training that was rolled out to operations
globally.
INTERNAL AUDIT
Group Internal Audit is a key independent assurance and consulting business partner within AngloGold Ashanti under the
leadership of the Senior Vice President: Group Internal Audit who has direct access to the chairmen of both the Audit
Committee and the board. The Audit Committee has assessed the performance of the Senior Vice President: Group Internal
Audit in terms of the annually reviewed and approved internal audit charter and is satisfied that the internal audit function is
independent and appropriately resourced, and that the Senior Vice President: Group Internal Audit has fulfilled the obligations
of the position by performing the following functions:
·
evaluating ethical leadership and corporate citizenship within AngloGold Ashanti;
·
assessing the governance of risk within AngloGold Ashanti;
·
reviewing the governance of Information Technology;
·
assessing compliance with laws, rules, codes and standards;
·
evaluating the effectiveness of internal controls over financial reporting and internal controls in general;
·
reporting findings to management and the Audit Committee and monitoring the remediation of all significant deficiencies
reported; and
·
implementing a Combined Assurance Framework for the group.
The Audit Committee considered the internal control heat-map for AngloGold Ashanti as presented by Group Internal Audit
and monitored the implementation of significant audit recommendations through a formal tracking process.
Group Internal Audit is subjected to an independent quality assessment review as required by the Institute of Internal Auditors’
Standards for the Professional Practice of Internal Audit every 5 years, the last of which was concluded during 2012. The
independent assessment conducted by PwC which included a benchmark conducted against international peers yielded a
favourable result.
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ANNUAL FINANCIAL STATEMENTS 2014
7
The Audit Committee is of the opinion, having considered the written assurance statement provided by Group Internal Audit,
that the group’s system of internal financial controls is effective and provides reasonable assurance that the financial records
may be relied upon for the preparation of the annual financial statements.
FINANCE FUNCTION AND CHIEF FINANCIAL OFFICER
The Audit Committee received feedback on an internal assessment conducted on the skills, expertise and resourcing of the
finance function and was satisfied with the overall adequacy and appropriateness of the function. The Audit Committee further
reviewed the expertise and experience of the previous and current Chief Financial Officers, Richard Duffy and Christine
Ramon and was satisfied with the appropriateness thereof.
WHISTLEBLOWING
The Audit Committee received quarterly updates on AngloGold Ashanti’s whistle-blowing process. Reports received and
investigated did not reveal any malpractice relating to the accounting practices, internal financial controls, internal audit
function and the content of the company’s financial statements.
LOOKING FORWARD
The effectiveness of the risk management process and the integration with the combined assurance process within AngloGold
Ashanti remains a key focus area for the Audit Committee to help ensure that value is derived through the various assurance
processes.
The Audit Committee will continue to closely monitor the impact of the staff reductions on the internal control environment
during 2015.
STATEMENT OF INTERNAL CONTROL
Based on the assessment by the Audit Committee of the results of the formal documented review conducted by Group Internal
Audit and other identified assurance providers in terms of the evolving combined assurance model of the company’s system of
internal controls and risk management, including the design, implementation and effectiveness of the internal financial controls
and considering information and explanations given by management and discussions with both the internal and external
auditors on the results of their audits, nothing has come to the attention of the board that caused it to believe that the
company’s system of internal controls and risk management is not effective and that the internal financial controls do not form
a sound basis for the preparation of reliable financial statements.
The opinion of the board is supported by the Audit Committee.
ANNUAL FINANCIAL STATEMENTS
The Audit Committee has evaluated the consolidated and separate annual financial statements for the year ended
31 December 2014 and concluded that they comply, in all material aspects, with the requirements of the International
Financial Reporting Standards (IFRS) and Interpretations of those standards, as issued by the International Accounting
Standards Board (IASB) in the English language, the Financial Reporting Guides (FRG) as issued by the South African
Institute of Chartered Accountants Financial Reporting Guides as issued by the Accounting Practices Committee, Financial
reporting Pronouncements as issued by Financial Reporting Standards Council, JSE listings requirements and in the manner
required by the Companies Act. The Audit Committee therefore recommended the approval of the annual financial statements
to the board.
CONCLUSION
The Audit Committee is satisfied that it has considered and discharged its responsibilities in accordance with its mandate and
terms of reference during the year under review.
Rhidwaan Gasant
Chairman: Audit and Risk Committee
19 March 2015
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ANNUAL FINANCIAL STATEMENTS 2014
8
CHIEF FINANCIAL OFFICER’S REVIEW
Delivered on consistent production and cost guidance amidst continuing
adverse market conditions. Our focus remains on strengthening the balance
sheet in the medium term and creating a prudent buffer for volatility.

·
Production of 4.436Moz - up 8% year-on-year
·
Total cash costs of $787/oz - 5% lower year-on-year
·
All-in sustaining cost of $1,026/oz - 13% lower year-on-year
·
Capital expenditure of $1.2bn - 39% below 2013
·
Exploration and evaluation costs $144m - 44% lower year-on-year
·
Adjusted EBITDA stable at $1,665m despite a 10% drop in gold price
·
Self-help measures progressed to deleverage in medium term
·
Free cash outflow shows strong improvement to $112m from $1,058m

EXECUTIVE SUMMARY
The year under review was marked by a further fall in the gold price for which the average price received decreased by
$137/oz or 10% over the course of the year. The impact of the drop in the gold price has been proactively managed and the
2014 results reflect consistent operational and cost performance. It is the second consecutive year of growth in gold
production, with an overall 8% increase being recorded year-on-year. At the same time, all-in sustaining costs per ounce
improved by 13% year-on-year.
Significantly lower year-on-year total cash and all-in sustaining costs were achieved through the combination of production
and overall cost improvements reflecting the first full year of operations at our two new low-cost mines (Kibali and Tropicana).
In addition, our efforts to tackle costs across a broad front underpinned the improvement in margins, through the Project 500
(P500) initiative, reductions in direct operating costs, corporate overheads and exploration costs, and strict capital allocation.
We continue to focus on ‘self-help measures’ in three areas:
·
the review of the asset portfolio while actively seeking joint-venture partnerships in Colombia and at Obuasi as well as
pursuing the potential sale or joint venture of an operating asset;
·
cash flow improvements through the optimisation of business plans and consolidation of regional hubs; and
·
leverage to exploit weaker currencies, and the consequently higher price in terms of these currencies, and lower fuel
prices.
One of our five core strategic focus areas is to ‘ENSURE FINANCIAL FLEXIBILITY’ which means structuring our balance
sheet to allow us to meet our core funding requirements and to provide a reasonable buffer for gold price volatility as well as
other adverse unforeseen events. To ensure continued flexibility in the debt maturities schedule, refinancing of the group’s
revolving credit facilities (RCFs) was completed mid-year. The new $1bn RCF and A$500m RCF were agreed during July
2014 for a further five-year period. In addition, a looser financial covenant was concluded, with the net debt to adjusted
EBITDA covenant at 3.5 times (previously 3 times), with one six month period waiver of up to 4.5 times, subject to certain
conditions. The $ and A$ RCFs have also been priced tightly, to reflect the current financial market conditions. The looser
covenant is also applicable to the ZAR RCF.
AngloGold Ashanti’s credit rating was reviewed by both Moody’s Investor Service and Standard and Poor’s (S&P), to Baa3
with a negative outlook and BB+ with a negative outlook, respectively. The Moody’s rating places the company at the lowest
level of investment credit grade and S&P has the company at the top level of sub-investment credit grade. These ratings
remained unchanged.
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ANNUAL FINANCIAL STATEMENTS 2014
9
The group’s balance sheet is highly geared and efficiently structured and the debt has long-dated maturities. Apart from the
R750m bond maturing in 2016 and the R1.5bn RCF which matures in December 2018, the earliest international bond maturity
date is in April 2020. The high-yield bond ($1.25bn: 8.5%) issuers’ call can only be exercised from July 2016 onwards, at the
group’s discretion, allowing sufficient time for the group to explore any ‘self-help measures’ ahead of any options around
refinancing or early redemption being assessed. The conclusion of a potential asset sale and joint venture partnerships should
help the group determine whether or not to exercise the high yield bond call option.
NET DEBT ($bn) AND GOLD PRICE ($/oz)

DEBT MATURITY

















*
Excludes DMTNP and local bond amounts outstanding at 31 December of $80m, ZAR calculated at R11.6/$, A$ facility calculated at
A$0.82.
Our medium term leverage target is 1.5 times net debt to adjusted EBITDA. We would like to reduce our debt by
approximately $1bn to take us to our comfort threshold which would include a reasonable buffer for volatility, including the
gold price risk and production disruptions.
Our aim is to achieve this debt reduction through a variety of self-help measures as elaborated above. Importantly we are
under no external pressure to achieve this. This is an aspirational target that can be achieved over the next few years.
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ANNUAL FINANCIAL STATEMENTS 2014
10
CASH FLOW FROM OPERATING ACTIVITIES AND TOTAL CAPITAL SPEND ($bn)
*
Excludes hedge buy-back costs.
CAPITAL EXPENDITURE AND CASH FLOW
The sharp drop in the gold price since 2012, together with expenditure on growth projects (total capital expenditure $8.3bn
over the past five years), is directly related to the increase in the group’s net debt levels over the past few years. Net debt
levels were maintained during the year under review at $3.1bn.
Cash inflow from operating activities of $1,220m for the year ended 31 December 2014 was marginally down on $1,246m
achieved in 2013, despite the 10% lower gold price received, the cost of Obuasi redundancies, and the Rand Refinery loan of
$44m, all of which were partly offset by the 8% higher production. External audit procedures performed subsequent to year
end confirmed the gold gap at Rand Refinery has not increased. Therefore any additional loan funding requirements from
shareholders is not envisaged at this stage. Cash inflow from operating activities before the Obuasi redundancy costs and the
Rand Refinery loan amounted to $1,474m, reflecting an increase of 18% on 2013 levels. Free cash outflow of $112m, which
included the once-off redundancy costs at Obuasi, was an improvement on the outflow of $1,058m for the year ended 31
December 2013, mainly as a result of lower capital expenditure. The sale of the Navachab mine was completed mid-year,
where cash proceeds of $105m were realised.
We are focused on strict capital allocation and capital prioritisation as reflected in the 48% reduction in capital in 2014,
compared to 2012 when capital expenditure was at its peak.
We have prioritised stay in business capital to ensure the sustainability of our operations. The 20% decline in the sustaining
capital from 2013 primarily relates to the down scale of Obuasi and the focus on optimising the cash flows relating to
discretionary capital.
Project capital includes Mponeng Phase 1, Kibali underground, and the MLE2 expansion at CC&V.
These projects will enhance the long term optionality of our group enabling us to deliver long term shareholder returns.
LEVERAGE TO CURRENCIES AND OIL

In 2014, the drop in the gold price was offset by weaker global currencies and the sharp drop in the oil price which helped
reduce the group’s input costs.
Our currency basket comprises the various regions in which we operate together with the related production impacts. We are
most sensitive to the South African Rand followed by the Australian dollar and the Brazilian real.
The Brent crude oil price is a derived energy input cost for our operations in Continental Africa, Australia and in the US.
Our sensitivities have been calculated at our budgeted exchange rate and commodity price assumptions as follows:
·
A 1% weakening in our currency basket, will positively impact our cash costs by approximately $6/oz; and
·
For every $10/bbl weakening in the oil price, it will positively impact our cash costs by approximately $7/oz.
1.67
2.81
1.97
1.25
1.22
-
0.5
1.0
1.5
2.0
2.5
3.0
2010
2011
2012
2013
2014
Cash flow from operating activities
Capital expenditure
*
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ANNUAL FINANCIAL STATEMENTS 2014
11
DELIVERY AGAINST 2014 FINANCIAL OBJECTIVES
1.
Continue to maintain sufficient balance sheet liquidity and flexibility in a lower gold price environment
The temporary relaxation of the banking covenant of 4.5 times net debt to adjusted EBITDA expired with the June 2014
testing period, while the $ and A$ revolving credit facilities are set to mature within the next five-year period. The group
therefore moved prudently and proactively to manage its financial flexibility and steps taken in this regard included:
·
Successful re-financing in July 2014 of the group’s RCFs for another five years, including the $1bn RCF (which was
due to mature in July 2017) and the A$500m RCF (replacing the previous A$600m RCF which was due to mature in
December 2015);
·
Improved financial flexibility – the new banking covenant of 3.5 times – previously 3 times net debt to adjusted
EBITDA (with one six month period waiver of up to 4.5 times subject to certain conditions) – is applicable to all of the
group’s RCFs. This adds further flexibility to the balance sheet liquidity especially in the light of the ongoing gold
price volatility and prevailing labour uncertainty in South Africa; and
·
Managed net debt levels in 2014 – the group’s net debt to adjusted EBITDA covenant ratio was 1.88 times at year
end and was in line with the 1.86 of a year earlier, despite the reduction in the gold price, additional funding required
for the Obuasi redundancies and a loan to Rand Refinery. Subsequent to year end, external audit procedures
confirmed that the gold gap at Rand Refinery has not increased. Therefore any additional loan funding requirements
from shareholders is not envisaged at this stage.
2.
Maintaining our focus on the management of costs to deliver competitive all-in sustaining and all-in costs
and continuing to target sustainable cash generation
Management’s initiatives to deliver on competitive all-in sustaining and all-in costs included:
·
The initial stated purpose of P500 was to deliver specific targeted cost reductions. These have now been achieved
and exceeded, and are reconciled with the financial reporting systems;
·
The organisational redesign was completed and corporate costs as well as exploration costs were significantly
reduced from 2013’s levels;
·
Capital expenditure has reduced by 39% compared to 2013 reflecting project completion and capital prioritisation;
and
·
We delivered free cash inflow of $142m for 2014 which excludes the proceeds of $105m from the sale of Navachab,
despite a 10% drop in the gold price compared to 2013, before taking into account the once off non-operational cash
outflows relating to the Obuasi redundancy payments and the Rand Refinery loan funding.
REVIEW OF GROUP’S PROFITABILITY, LIQUIDITY AND STATEMENT OF
FINANCIAL POSITION FOR 2014
The key financial and operational metrics for 2014, when compared to 2013 and 2012, reflect the adverse impact of the further
fall in the gold price, the benefit of higher production as well as operational issues faced at certain operations.
2014
2013
2012
Profitability and returns
Adjusted headline earnings (1)
$bn
0
0.6
1.0
US cents per share
0
153
255
(Loss) profit attributable to equity shareholders
$bn
(0.1)
(2.2)
0.9
Return on net capital employed (1)
%
4
12
15
Return on equity (1)
%
0
18
19
Dividends declared per ordinary share
SA cents per share
-
50
300
US cents per share
-
5
35
Liquidity, cash flow and net debt
Net debt at year end (1)
$bn
3.1
3.1
2.1
Free cash outflow (1)
$bn
(0.1)
(1.0)
(0.7)
Adjusted earnings before interest, taxes and depreciation
and amortisation (adjusted EBITDA) (1)(3)
$bn
1.7
1.7
2.5
Net debt to adjusted EBITDA(1)(3)
Times
1.88
1.86
0.81
Operational metrics
Gold produced
Moz
4.44
4.11
3.94
Price received
$/oz
1,264
1,401
1,664
Total cash costs (1)
$/oz
787
830
829
All-in sustaining costs (1)(2)
$/oz
1,026
1,174
1,251
All-in costs (1)(2)
$/oz
1,148
1,466
1,589
All-in sustaining cost margin (1)(2)
%
19
16
25
(1)
Non-GAAP measures
(2)
Excludes stockpile write-offs
(3)
The adjusted EBITDA calculation is based on the formula included in the Revolving Credit Agreements for compliance with the debt
covenant formula as specified in the Revolving Credit Agreement.
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ANNUAL FINANCIAL STATEMENTS 2014
12
Profitability and returns
Full-year higher (8%) gold production of 4.436Moz, highlighted the impact of the first full year of production from Kibali and
Tropicana.
Operational challenges continued at the South African operations and production declined by 6%, predominantly as a
consequence of safety-related stoppages, the aftermath of the earthquake experienced on 5 August 2014 and infrastructural
damage at Mponeng that constrained operations.
In Continental Africa, the first full year of production at Kibali, helped by strong performances at Geita and Siguiri, more than
offset the declines at Yatela and Iduapriem, as well as the sale of Navachab. The decline at Iduapriem was mainly the result of
a change in the mine plan to treat the surface ore stockpile.
In Australia, Tropicana also had its first full year of production, while at Sunrise Dam production was marginally reduced as
grades declined below planned levels, mitigated in part by the higher volumes of ore treated.
The year under review was also challenging for the Americas as overall production in the region declined marginally.
Increased production at AGA Mineração and at Cerro Vanguardia failed to offset declines at Cripple Creek & Victor and Serra
Grande caused by those two mines’ low grades and adverse stockpile movements. The high-grade mill at Cripple Creek &
Victor is nearing completion and is expected to be commissioned early in 2015 with the ramp-up to full production during
2015.
Management initiatives and strong focus on all-in sustaining costs and overheads, resulted in total cash costs reducing by 5%
from $830/oz in 2013 to $787/oz in 2014 and all-in sustaining costs reducing by 13% to $1,026/oz (2013: $1,174/oz). The cost
reductions highlight the impact of the higher production, lower-cost producing operations (Kibali and Tropicana) delivering
their first full year of operations, the P500 savings coupled with the removal of high-cost and unprofitable ounces, strict capital
discipline, weaker local currencies, which were in part offset by inflation. All-in cost reduced by 22% to $1,148/oz (2013:
$1,466/oz) reflecting the impact of the lower investment in new growth projects with the completion of Kibali and Tropicana.
At the adjusted headline earnings level, there was a loss of $1m in 2014 against 2013’s $599m or 153 US cents per share.
Earnings in 2014 were affected by the 10% decline in the average gold price received and the cost of redundancies at Obuasi,
while the prior year included the benefit of a once-off gain of $567m relating to the settlement of the mandatory convertible
bond. Thus, on a comparative or normalised basis, earnings declined from $411m in 2013 to $328m in 2014. The decline of
$83m in the normalised adjusted headline earnings is principally the result of the 10% reduction in the average gold price
received and annual inflationary cost increases.
During 2014, a loss attributable to equity shareholders of $58m was recorded compared to a loss of $2.2bn in 2013. The
significant loss in 2013 was mainly attributable to the significant impairment of mining assets, equity-accounted investments
and inventories of $2.5bn post-taxation, as well as to deferred taxation asset impairments of $330m. These were all partly
negated by improved production, net fair value gains on the various convertible bonds, lower corporate and marketing costs
and reduced exploration and evaluation costs.
As part of the cash conservation measures and continued investment in capital growth projects (Mponeng phase 1, Kibali
underground and MLE2 expansion at Cripple Creek & Victor), no dividends were declared in 2014 (2013: 50 SA cents per
share; 2012: 300 SA cents per share).
Liquidity, cash flow and statement of financial position
Debt levels were under pressure due to the lower gold price, funding requirements of the cost of the Obuasi operational down-
scaling and a loan to Rand Refinery. By reducing costs, overheads and capital expenditure the group managed to contain the
net debt at a level only marginally above that of 2013 as well as significantly reduce the free cash outflow:
·
Adjusted EBITDA: $1.665bn (2013: $1.667bn);
·
Cash inflow from operating activities: $1.220bn (2013: $1.246bn);
·
Free cash outflow: $112m (2013: $1,058m); and
·
Free cash inflow: $142m (2013: outflow $1,058m), excluding Obuasi redundancy costs and the Rand Refinery loan.
Net debt as at 31 December 2014 was $3.133bn, marginally higher than the level of $3.105bn at 31 December 2013.

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ANNUAL FINANCIAL STATEMENTS 2014
13
Principal factors accounting for the movements in net debt levels were:
Principal movements in net debt
US Dollar
million
Net debt 2013
3,105
Free cash inflow
(142)
Proceeds from the sale of Navachab
(105)
Sub-total
2,858
Cost of Obuasi redundancies
210
Loan to Rand Refinery
44
Dividends paid to non-controlling shareholders
17
Other
4
Net debt 2014
3,133
Turning to the statement of financial position and the financing facilities available, the group’s principal US dollar and
Australian dollar debt facilities are listed below:
·
Fully drawn rated bonds – $1.75bn in aggregate – that mature in April 2020 ($700m: 5.375%), August 2022
($750m: 5.125%) and April 2040 ($300m: 6.5%);
·
Fully drawn $1.25bn, 8.5% bonds that mature in July 2020;
·
$1bn revolving credit facility that matures in July 2019, which is currently $100m drawn to fund part of the costs relating to
the Obuasi redundancies;
·
A$500m base rate plus 2% credit facility earmarked for the construction of the Tropicana project that matures in July 2019,
of which A$315m had been drawn at year-end;
·
R750m JIBAR-plus – 1.75% South African, floating-rate bond that matures in 2016; and
·
R1.5bn JIBAR-plus – 1.2% South African revolving credit facility that matures in December 2018.
More detailed notes and analyses of the group’s income statement, statement of financial position and statement of cash flow
for 2014 are available in the group financial statements for 2014.
Looking ahead to 2015, the key financial objectives are to:
·
Continue to focus on self-help measures (including the potential sale or joint venture of an operating asset) to deleverage
the balance sheet in order to maintain sufficient liquidity and flexibility in a lower gold price environment;
·
Focus on financial and project risk mitigation by seeking joint venture partners for Colombia and Obuasi;
·
Review the asset portfolio with a view to rebalancing the portfolio with more-profitable ounces;
·
Maintain our focus on cost and capital discipline to deliver competitive all-in sustaining costs and all-in costs; and
·
Continue to target sustainable cash generation. For 2015, significant cost reductions have been included in the annual
business plans.
For the year ahead, production is guided at between 4.0Moz and 4.3Moz, reflecting Obuasi’s limited operations, the sale of
Navachab and production declines in Mali. Total cash costs and all-in sustaining costs are estimated at $770/oz to $820/oz
and $1,000/oz to $1,050/oz, respectively, assuming weaker average exchange rates and a lower oil price. Total capital
expenditure is estimated at $1,000m to $1,100m, corporate and marketing costs at $95m to $110m, amortisation and
depreciation at $860m, exploration including equity accounted investments at $155m to $175m and interest and finance costs
$270m (income statement) and $240m (cash flow). Production and cost estimates do not take into account the impacts of any
unforeseen operational disruptions, changes to the projects, or changes to the asset portfolio/operating mines. The forecast is
based on the following assumptions: R11.60/$; $/A$0.85; BRL 2.60:$; AP9.50/$; Brent crude at $70 per barrel.
We are expecting our debt levels to remain steady at the end of 2015, taking into account our estimated production, planned
expenditures at budgeted exchange rates and commodity and fuel price assumptions, although it may increase slightly in the
first half due to free cash flow profiling in South Africa from production and capital expenditure fluctuations. This excludes any
proceeds from asset sales or joint venture partnerships that we may consider pursuing or the impact of any operational or
other disruptions.
In addition to a strong leverage to the gold price, a number of our group’s operations are also leveraged to both the weaker
average global currencies and the lower average oil price, which benefits our cash costs. In 2014, the drop in the gold price
was partially offset by weaker global currencies and the lower average oil price. In addition, the contribution of just over 70%
of the group’s adjusted EBITDA from our international operations emphasises our geographical diversification and resilience
to unforeseen production disruptions in the South African region.




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ANNUAL FINANCIAL STATEMENTS 2014
14
Subsequent events

AngloGold Ashanti currently considers joint venturing or selling its interest in Cripple Creek & Victor (CC&V) mine

The company has initiated a plan to identify a joint venture partner or a purchaser in respect of its interest in the Cripple Creek
& Victor mine in Colorado in the United States for full value. The CC&V gold mine is a surface mining operation which
provides oxidised ore to a crusher and valley leach facility, one of the largest in the world. It is included in the Americas
reporting segment and was acquired by AngloGold Ashanti in 1999. The mine produced 211,000 ounces of gold in 2014.
There can be no assurance, however, that a sale and purchase agreement for this transaction will be entered into or that any
sales transaction will be completed.

AngloGold Ashanti currently considers selling its interests in Société d’Exploitation des Mines d’Or de Sadiola S.A.
(Sadiola) and Société d’Exploitation des Mines d’Or de Yatela S.A. (Yatela)

The company currently intends to dispose of its 41% stake in Sadiola and its 40% stake in Yatela. The mines are both
situated in western Mali and are included in the Continental Africa reporting segment. The Sadiola and Yatela mines
produced 85,000 and 11,000 attributable ounces of gold, respectively, in 2014.

Management was approached by a potential buyer for both mines who meets management’s qualifying criteria and has asked
for a binding bid. There can be no assurance, however, that a sale and purchase agreement for these transactions will be
entered into or that any sales transactions will be completed.
Acknowledgement
I took over the role of Chief Financial Officer at AngloGold Ashanti Limited with effect from 1 October 2014. The transition from
my predecessor Richard Duffy was seamless, thanks to a strong and diligent financial team in the group. Our team, through
their understanding of the challenging economic and financial pressures, has helped us proactively manage the financial
position of the company. In addition, we have been able to deliver quality financial information to our stakeholders which
reflects our objectives and values for long term success. I would like to thank our strong and enthusiastic financial team in the
group for their ongoing support and look forward to the year ahead.

Best regards



Christine Ramon
Chief Financial Officer
19 March 2015
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ANNUAL FINANCIAL STATEMENTS 2014
15
DIRECTOR’S APPROVAL
In accordance with Section 30(3)(c) of the Companies Act, No. 71 of 2008, as amended, the annual financial statements for
the year ended 31 December 2014 were approved by the board of directors on 19 March 2015 and are signed on its behalf
by:
DIRECTORS
SM Pityana, Chairman
S Venkatakrishnan, Chief Executive Officer
KC Ramon, Chief Financial Officer
R Gasant, Chairman: Audit and Risk Committee





SECRETARY’S CERTIFICATE
In terms of Section 88(2)(e) of the Companies Act, No. 71 of 2008, as amended, I certify that the company has lodged with the
Companies and Intellectual Property Commission all such returns and notices as are required of a public company in terms of
the Act, and that all such returns and notices are true, correct and up-to-date.
ME Sanz Perez
Company Secretary
Johannesburg
19 March 2015





AFFIRMATION OF FINANCIAL STATEMENTS
In accordance with Section 30(2) and 30(3) of the Companies Act, No. 71 of 2008, as amended, the annual financial
statements for AngloGold Ashanti Limited, registration number 1944/017354/06, for the year ended 31 December 2014, have
been audited by Ernst & Young Inc., the company’s independent external auditors, whose unqualified audit opinion can be
found under Independent Auditor’s Report, on page 41.
The financial statements have been prepared by the corporate reporting staff of AngloGold Ashanti Limited, headed by
John Edwin Staples (BCompt (Hons); CGMA), the group’s Chief Accounting Officer. This process was supervised by
Kandimathie Christine Ramon (CA (SA)), the group’s Chief Financial Officer and Srinivasan Venkatakrishnan, (BCom; ACA
(ICAI)) the group’s Chief Executive Officer.




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ANNUAL FINANCIAL STATEMENTS 2014
16
DIRECTOR’S REPORT
For the year ended 31 December 2014

NATURE OF BUSINESS
AngloGold Ashanti conducts mining operations in Africa, North and South America and Australia, and undertakes exploration
activities in some of these jurisdictions. In addition, the company is involved in the manufacturing, marketing and selling of
gold products, as well as the development of markets for gold. At certain of its operations, AngloGold Ashanti produces
uranium, silver and sulphuric acid as by-products in the course of producing gold.
A review of the unaudited performance of the various operations is available in the operational profiles on AngloGold Ashanti’s
annual report website www.aga-reports.com.
Shareholders holding 10% or more of AngloGold Ashanti’s issued share capital
As at 31 December 2014, there were no shareholders holding 10% or more of the company’s issued share capital. This does
not take cognisance of the shares held by the Bank of New York Mellon as depositary for the AngloGold Ashanti ADR
programme.
SHARE CAPITAL
Authorised
The authorised share capital of AngloGold Ashanti as at 31 December 2014 was made up as follows:
SA rands
• 600,000,000 ordinary shares of 25 South African cents each
150,000,000
• 4,280,000 E ordinary shares of 25 South African cents each (1)
1,070,000
• 2,000,000 A redeemable preference shares of 50 South African cents each
1,000,000
• 5,000,000 B redeemable preference shares of 1 South African cent each
50,000
(1)
There are no E ordinary shares in issue. The authorised E ordinary shares are being cancelled – see Special Resolution No. 5 in the
Notice of Annual General Meeting.
The following are the movements in the issued and unissued share capital from 1 January 2014 to 28 February 2015:
Issued
Ordinary shares
Number of
Shares
Value
SA rands
Number of
shares
Value
SA rands
2014
2013
At 1 January
402,628,406
100,657,102
383,320,962
95,830,241
Issued during year:
Conversion of E ordinary shares
– Bokamoso ESOP
154,299
38,575
36,254
36,254
– Izingwe
149,733
37,433
91,683
22,921
Exercise of options by participants in the AngloGold
Ashanti Share Incentive Scheme
1,077,922
269,480
930,743
232,686
Conversion of Mandatory Convertible Bond issued in 2010
and matured on 15 September 2013
-
-
18,140,000
4,535,000
At 31 December (1)
404,010,360
101,002,590
402,628,406
100,657,102
At 31 December (1)
404,010,360
101,002,590
402,628,406
100,657,102
Issued subsequent to year-end
–    Exercise of options by participants in the AngloGold
Ashanti Share Incentive Scheme
265,346
66,337
At 28 February 2015
404,275,706
101,068,927
(1
)
Share capital of $16m (2013: $16m) is translated at historical rates of exchange at the reporting dates. Refer to group financial statements
note 26.
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ANNUAL FINANCIAL STATEMENTS 2014
17
E ordinary shares
On 11 December 2006, shareholders in general meeting authorised the creation of a maximum of 4,280,000 E ordinary
shares to be issued pursuant to an Employee Share Ownership Plan (ESOP) and a black economic empowerment transaction
with Izingwe Holdings (Pty) Limited (Izingwe) (collectively, the BEE transaction).
All the E ordinary shares have vested and were cancelled in exchange for ordinary shares in accordance with the amended
cancellation formula during the 2014 financial year. There are as at 31 December 2014 no E ordinary shares in issue.
The table below indicates the shares issued at 31 December 2014 and the shares that vested during 2014.
Ordinary shares
Number of
Shares
Value
SA rands
Number of
shares
Value
SA rands
2014
2013
At 1 January
712,006
178,001
1,617,752
404,438
Cancelled in exchange for ordinary shares in terms of the
cancellation formula:
– Bokamoso ESOP
(362,006)
(90,501)
(555,746)
(138,937)
– Izingwe
(350,000)
(87,500)
(350,000)
(87,500)
At 31 December
-
-
712,006
178,001
Share capital is translated at historical rates of exchange at the reporting dates. Refer to group financial statements note 26.
Redeemable preference shares
The A and B redeemable preference shares, all of which are held by the wholly owned subsidiary, Eastvaal Gold Holdings
Limited, may not be transferred and are redeemable from the realisation of the assets relating to the Moab lease area after the
cessation of mining operations in the area. The shares carry the right to receive dividends equivalent to the profits (net of
royalty, ongoing capital expenditure and taxation) from operations in the area. No further A and B redeemable preference
shares will be issued.
Further details of the authorised and issued shares, as well as the share premium, are given in group financial statements
note 26.
Unissued
Number of ordinary shares
2014
2013
At 1 January
197,371,594
216,679,038
Issued during the year
(1,381,954)
(19,307,444)
At 31 December
195,989,640
197,371,594
Issues subsequent to year-end
(265,346)
At 28 February 2015
195,724,294
Ordinary shares under the control of the directors
Pursuant to the authority granted by shareholders at the Annual General Meeting held on 14 May 2014, 5% of the shares in
issue, from time to time, are placed under the control of the directors to allot and issue, for such purposes and on such terms
as the directors, in their discretion, may determine. At 31 December 2014, the total number of shares placed under the control
of the directors was 20,200,518. No shares were issued during 2014 by the directors in terms of this authority, which will
expire at the close of the next Annual General Meeting, unless renewed.
Shareholders will therefore be asked at the Annual General Meeting to be held on 6 May 2015, to renew this authority by
placing 5% of the number of shares in issue, from time to time, under the control of the directors to allot and issue, for such
purposes and on such terms as the directors, at their discretion, may determine.
In terms of the Listings Requirements of the JSE, shareholders may, subject to certain conditions, authorise the directors to
issue the ordinary shares held under their control for cash other than by means of a rights offer to shareholders. To enable the
directors of the company to take advantage of favourable business opportunities which may arise for the issue of such
ordinary shares for cash, without restriction, for the benefit of the company, shareholders will be asked to consider an ordinary
resolution to this effect at the Annual General Meeting to be held on 6 May 2015.
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ANNUAL FINANCIAL STATEMENTS 2014
18
Shareholders will also be asked to approve as a general authority, the acquisition by the company, or a subsidiary of the
company, of its own shares from its issued ordinary share capital for certain specific housekeeping reasons.
Depositary interests
American Depositary Shares
At 31 December 2014, the company had in issue, through The Bank of New York Mellon as Depositary and listed on the New
York Stock Exchange (NYSE) 194,944,027 (2013: 185,581,840), American Depositary Shares (ADSs). Each ADS is equal to
one ordinary share. At 28 February 2015, there were 196,988,924 ADSs in issue and listed on the NYSE.
CHESS Depositary Interests
At 31 December 2014, the company had in issue, through the Clearing House Electronic Sub-register System (CHESS), and
listed on the Australian Securities Exchange (ASX), 89,783,295 (2013: 89,789,845) CHESS Depositary Interests (CDI). The
number of CDIs in issue at 28 February 2015 was 89,783,295. Every five CDIs is equivalent to one AngloGold Ashanti
ordinary share and carry the right to one vote.
Ghanaian Depositary Shares
At 31 December 2014, the company had in issue, through NTHC Limited as Depositary and listed on the Ghana Stock
Exchange (GSE), 16,275,735 Ghanaian Depositary Shares (GhDSs) (2013: 16,556,655). The register as at 28 February 2015
remained unchanged. Every 100 GhDSs has one underlying AngloGold Ashanti ordinary share and carries the right to one
vote.
CREST Depositary Interests
The trading on the London Stock Exchange (LSE) through a Depository Interest (DI) facility was terminated by AngloGold
Ashanti. The shares were delisted on 22 September 2014 with a closing of 307,037 DIs. As at 31 December 2014, no shares
were in issue.
ANGLOGOLD SHARE INCENTIVE SCHEME
AngloGold Ashanti operates a share incentive scheme through which Executive Directors, members of the Executive
Committee and other management groups of the company and its subsidiaries are given the opportunity to acquire shares in
the company. The objective is to incentivise such employees to identify themselves more closely with the fortunes of the
group, support its continued growth, and to promote the retention of such employees.
Non-Executive Directors are not eligible to participate in the share incentive scheme.
Employees participate in the share incentive scheme to the extent that they are granted options or rights to acquire shares
and accept them. All options or rights which have not been exercised within ten years from the date of grant, automatically
expire.
The incentives offered by AngloGold Ashanti are reviewed periodically to ensure that they remain globally competitive, so as
to attract, reward and retain managers of the highest caliber. As a result, several types of incentives, each with their own issue
and vesting criteria, have been granted to employees. These are collectively known as the ‘AngloGold Share Incentive
Scheme’ or ‘Share Incentive Scheme’.
Although the Remuneration and Human Resources Committee has the discretion to incentivise employees through the issue
of shares, only options or awards have so far been granted.
The type and vesting criteria of the options or awards granted are:
Performance-related options
The granting of performance-related options was approved by shareholders at the Annual General Meeting held on
30 April 2002 and amended at the Annual General Meeting held on 29 April 2005 when it was agreed that no further
performance-related options would be granted. Performance-related options granted, terminated on 1 November 2014, being
the date on which the last options granted hereunder could be exercised before expiry.

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ANNUAL FINANCIAL STATEMENTS 2014
19
Bonus Share Plan (BSP)
The granting of awards in terms of the BSP was approved by shareholders at the Annual General Meeting held on 29 April
2005 and amended at the General Meeting held on 6 May 2008 when shareholders approved an increase in the maximum
level of the bonus payable to eligible participants, as well as shortening of the vesting period. Executive Directors, executives
and other management groups are eligible for participation. Each award made in respect of the BSP entitles the holder to
acquire one ordinary share at ‘nil’ cost. In respect of all awards granted to and including 2007, these awards vest in full, three
years from the date of grant, provided that the participant remains in the employ of the company at the date of vesting unless
an event, such as death, retirement or redundancy occurs, which may result in an earlier vesting date. In respect of awards
granted in 2008 and thereafter, the vesting period has been shortened to two years, with 40% of awards granted vesting in
year one and 60% in year two from the date of grant or, in the event that a participant exercises his awards in year three, then
120% of awards granted will be available to such participant.
Certain changes were approved at the Extraordinary General Meeting of shareholders held on 11 March 2013. The 20% uplift
for the retention of shares for three years fell away, but was added to the initial 100% resulting in an allocation of 120% share
matching for all categories of management. The Executive Committee members received an increased allocation from 120%
to 150%. The vesting period has been shortened to two years with 50% vesting 12 months after the date of issue and the
remaining 50% vesting 24 months after the date of issue.
Long Term Incentive Plan (LTIP)
The granting of awards in terms of the LTIP was approved by shareholders at the Annual General Meeting held on
29 April 2005. Executive Directors and selected senior management are eligible for participation. Each award made in respect
of the LTIP entitles the holder to acquire one ordinary share at ‘nil’ cost. Awards granted vest three years from the date of
grant, to the extent that the set company performance targets, under which the awards were made, are met, and provided that
the participant remains in the employ of the company at the date of vesting, unless an event, such as death, retirement or
redundancy occurs, which may result in an earlier vesting date.
In 2013, the Remuneration and Human Resources Committee approved a new retention bonus scheme comprising both cash
(40% of total base pay) and shares (60% of base pay) which was implemented on 1 March 2013 for the Executive Committee
members (LTIP Retention bonus). This was implemented over the short term to support a strategy of retaining the top
management for a minimum period of 18 months to ensure delivery on key business imperatives, while the new Chief
Executive Officer was inducted. The share award comprised of performance-based share (LTIP) granted in March 2013,
subject to the performance conditions, which were met and vested at the end of August 2014. In line with the LTIP vesting, the
cash portion was paid at the end of August 2014, based on the achievement of the performance conditions.
The CEO did not receive the cash portion of the LTIP retention bonus. This has been converted to restricted shares which are
deferred to retirement, retrenchment, any corporate activity resulting in a change of control, resignation, death or 5 years from
date of grant, whichever is earliest.
Following a change in Schedule 14 of the JSE Listings Requirements (Share Incentive Schemes) on 15 October 2008 the
maximum number of shares attributable to the scheme was changed from 2.75% of issued share capital from time to time to a
fixed figure of 17,000,000. The maximum aggregate number of shares which may be acquired by any one participant in the
scheme is 5% of the shares attributable to the scheme, being 850,000 ordinary shares in aggregate.
Also, as a result of the change to the JSE Listings Requirements, as aforementioned, the recycling of options/awards that
have vested and which have been delivered, and for which AngloGold Ashanti shares have been issued, is no longer allowed.
This has resulted in a diminishing pool of shares which will be addressed with the shareholders at the Annual General Meeting
of 6 May 2015.
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ANNUAL FINANCIAL STATEMENTS 2014
20
The table below reflects the total number of options/awards that are unissued in terms of the share incentive scheme, as a
result of this rule change:
Details
Options/Awards
Total number of options/awards attributable to the scheme at 31 December 2014
17,000,000
Less:
·
Total number of options/awards granted and outstanding at 31 December 2014
(7,420,177)
·
Total number of options/awards exercised:
·
During the period 15 October to 31 December 2008
(101,013)
·
During the period 1 January to 31 December 2009
(1,131,916)
·
During the period 1 January to 31 December 2010
(823,411)
·
During the period 1 January to 31 December 2011
(889,593)
·
During the period 1 January to 31 December 2012
(945,641)
·
During the period 1 January to 31 December 2013
(930,743)
·
During the period 1 January to 31 December 2014
(1,077,922)
Total options/awards available, but unissued at 31 December 2014
3,679,584
Co-Investment Plan (CIP)
To assist executives in meeting their Minimum Shareholding Requirements (MSR’s) with effect from February 2013, they were
given the opportunity, on a voluntary basis, to participate in the Co-Investment Plan (CIP), and this has been adopted based
on the following conditions: Executives will be allowed to take up to 50% of their after tax cash bonus to participate in a further
matching scheme by purchasing shares in AngloGold Ashanti, and the company will match their initial investment into the
scheme at 150%, with vesting over a two-year period in equal tranches.
Changes in options and awards
In accordance with the JSE Listings Requirements and the rules of the AngloGold Share Incentive Scheme, the changes in
options and awards granted and the ordinary shares issued as a result of the exercise of options and awards during the period
1 January 2014 to 28 February 2015 are disclosed below:
Performance-
related
Bonus
Share
Plan (1)
Long-Term
Incentive
Plan (1)
Total Share
Incentive
Scheme
At 1 January 2014
56,882
2,598,887
3,032,614
5,688,383
Movement during year
– Granted
-
1,983,469
2,217,675
4,201,144
– Exercised
(419)
(868,350)
(209,153)
(1,077,922)
– Lapsed – terminations
(56,463)
(408,491)
(926,474)
(1,391,428)
At 31 December 2014
-
3,305,515
4,114,662
7,420,177
Subsequent to year-end
– Granted (1)
-
127,441
3,103,155
3,230,596
– Exercised
-
(223,000)
(42,346)
(265,346)
– Lapsed – terminations
-
(18,410)
(325,054)
(343,464)
At 28 February 2015
-
3,191,546
6,850,417
10,041,963
(1)
BSP and LTIP awards are granted at no cost to participants.
Total shares issued on the exercise of options and awards from the inception of the scheme:
Total number of shares issued
At 1 January 2014
9,689,808
– Exercised 2014
1,077,922
At 31 December 2014
10,767,730
Subsequent to year-end
– Exercised January and February 2015
265,346
At 28 February 2015
11,033,076
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ANNUAL FINANCIAL STATEMENTS 2014
21
DIVIDEND POLICY
Dividends are proposed by, and approved by the board of directors of AngloGold Ashanti, based on the company’s financial
performance. AngloGold Ashanti has not paid dividends since the first quarter of 2013, but it expects to resume to pay
dividends, although there can be no assurance that dividends will be paid in the future or as to the particular amounts that will
be paid from year to year. The payment of future dividends will depend upon the board’s ongoing assessment of AngloGold
Ashanti’s earnings, after providing for long-term growth, cash/debt resources, compliance with the solvency and liquidity
requirements of the Companies Act, the amount of reserves available for a dividend based on the going-concern assessment,
any restrictions placed on AngloGold Ashanti by debt facilities, protection of existing credit rating and other factors.
The last dividend declared was interim dividend number 117 on 10 May 2013 of 50 cents per ordinary share in South African
currency, 3.458 pence per ordinary share in the United Kingdom currency, 10.28 cedis per ordinary in the Ghanaian currency,
5.375 cents per CDI (“CHESS Depository Interest”) in Australian currency (each CDI is equal to one-fifth of one ordinary
share), 0.1028 cedis per GhDS (Ghanaian Depository Share) in Ghanaian currency (each GhDS Ghanaian Depository share
is equal to one-hundredth of one ordinary share), 5.02 cents per ADS (American Depository Share) in United States currency
(each ADS is equal to one ordinary share and 25 cents per E ordinary share in South African currency.
Dematerialised shareholders on the South African share register will receive payment of their dividends electronically, as
provided for by STRATE. Certificated shareholders, who have elected to receive their dividends electronically, will be paid via
the company’s electronic funds transmission service. Certificated shareholders who have not yet elected to receive dividend
payments electronically, are encouraged to mandate this method of payment for all future dividends.
Withholding tax
On 1 April 2012, the South African government imposed a 15% withholding tax on dividends and other distributions payable to
shareholders.
BORROWINGS
The company’s borrowing powers are unlimited pursuant to the company’s Memorandum of Incorporation. As at
31 December 2014, the group’s gross borrowings totaled $3,721m (2013: $3,891m).
Significant events during the year under review
Announcement of strike: On 20 January 2014, AngloGold Ashanti announced that the Association of Mineworkers and
Construction Union has served notice that it intends to call a strike by its members at the company’s South Africa operations
on 23 January 2014. The strike was also going to affect some mines owned and operated by other large, South African gold
producers covered by the industry’s collective bargaining structure. On 30 January 2014, AngloGold Ashanti announced that
the threatened strike was declared unprotected by an interim interdict granted by South Africa’s Labour Court. The interim
interdict remained in force until 5 June 2014, on which date it was made permanent.
Agreement to sell Navachab Mine: AngloGold Ashanti announced on 10 February 2014 that it has signed a binding
agreement to sell its entire interest in AngloGold Ashanti Namibia (Pty) Limited, a wholly owned subsidiary which owns the
Navachab gold mine (Navachab), to a wholly owned subsidiary of QKR Corporation Limited (QKR). The company announced
on 1 July 2014 that it completed its sale of Navachab to QKR.
Changes to the Board of Directors: On 17 February 2014, AngloGold Ashanti announced that Tito Mboweni has decided
not to stand for re-election as Non-Executive Director at the Annual General Meeting held on 14 May 2014. Sipho Pityana a
Non-Executive Director, was unanimously elected as Chairman by the board. Professor Wiseman Nkuhlu assumed the new
role of Lead Independent Director of the board.
Change to the Board of Directors: On 25 March 2014, AngloGold Ashanti announced the appointment of David Hodgson
as Independent Non-Executive Director with effect from 25 April 2014.
Rating action by Standard & Poor’s rating agency: On 7 April 2014, AngloGold Ashanti announced that it confirms that
Standard & Poor’s rating agency has affirmed AngloGold Ashanti’s BB+ long-term corporate credit rating, placed it on
negative outlook, and also removed the company from CreditWatch Negative.
Appointment of Christine Ramon as incoming Chief Financial Officer: AngloGold Ashanti announced on 7 July 2014 that
Christine Ramon will be taking the post of Chief Financial Officer and Executive Director of the board from 1 October 2014.
She replaced Richard Duffy, who stepped down from the board and Executive Committee on 30 September 2014.
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ANNUAL FINANCIAL STATEMENTS 2014
22
Rand Refinery: On 25 July 2014, Shareholders of AngloGold Ashanti were referred to the announcement by Rand Refinery
regarding a loan facility extended to it by certain of its shareholders (including AngloGold Ashanti which owns 42.4%), as a
precautionary measure. It follows challenges encountered in the implementation of a new Enterprise Resource Planning
system at the refinery. AngloGold Ashanti confirmed its participation in the loan facility.
Update on South African earthquake: On 6 August 2014, AngloGold Ashanti announced that it confirmed that each one of
the 3,300 people working underground at its Great Noligwa and Moab Khotsong mines early the previous afternoon were
safely hoisted to surface when a 5.3 magnitude earthquake struck South Africa’s North West province. Twenty-eight
employees who sustained minor injuries as a result of the event received medical treatment.
Update on the restart of operations following the earthquake: On 11 August 2014, AngloGold Ashanti announced that it
was in the process of safely restarting its Great Noligwa and Moab Khotsong mines which were halted following a
5.3 magnitude earthquake that originated in the vicinity of the town of Stilfontein on 5 August 2014.
Intended delisting and cancellation of securities from the London Stock Exchange: AngloGold Ashanti announced on
18 August 2014 that its board of directors had resolved to request the cancellation of the listing of the Company’s ordinary
shares and depository interests of ZAR0.25 each on the Official List of the UK Listing Authority and the cancellation of the
admission to trading of the securities on the Main Market of the London Stock Exchange plc (LSE).
AngloGold Ashanti proposed a corporate restructure and a capital raising and cautionary announcement: AngloGold
Ashanti announced on 10 September 2014 that it had received approval from the South African Reserve Bank to restructure
its international mining operations under a new UK holding company. This restructuring was subject to approval of the
shareholders of the company. The new UK holding company intended to seek a premium listing on the LSE.
AngloGold Ashanti provided an update on the proposed restructure and withdrew cautionary announcement:
AngloGold Ashanti announced on 15 September 2014 that it had decided not to proceed with the restructuring and capital
raising as proposed on 10 September 2014.
Delisting and cancellation of securities from the LSE: AngloGold Ashanti announced on 26 September 2014 that the
listing of the company’s ordinary shares and depository interests on the Official List of the UK Listing Authority was cancelled
with effect from 22 September 2014.
Release of maiden resource for Nuevo Chaquiro deposit: On 3 November 2014, AngloGold Ashanti announced the first
Mineral Resource for the Nuevo Chaquiro deposit in the Quebradona Project Area. The Quebradona Project is a joint venture
between AngloGold Ashanti and B2Gold.
AngloGold appointed Deutsche as JSE Sponsor: On 3 November 2014, shareholders were advised that UBS South Africa
(Pty) Ltd’s services as sponsor to AngloGold Ashanti ended by mutual consent with effect from 31 October 2014. Deutsche
Securities (SA) (Pty) Ltd was appointed sponsor to the company with effect 1 November 2014. Shareholders were also
advised that Deutsche Securities (SA) (Pty) Ltd and Barclays Bank PLC were appointed joint corporate brokers to AngloGold
Ashanti.
Changes to the Board of Directors: On 27 November 2014, AngloGold Ashanti announced the appointment of Albert Garner
and Maria Richter as Non-Executive Directors to its Board of Directors with effect from 1 January 2015.
Significant events subsequent to year-end
Albert Garner and Maria Richter were appointed Non-Executive Directors with effect from 1 January 2015.
On 10 March 2015, AngloGold Ashanti announced the appointment of Chris Sheppard as incoming Chief Operating Officer:
South Africa, effective 1 June 2015. Mike O’Hare, the current Chief Operating Officer of South Africa, will take early
retirement during 2015.

AngloGold Ashanti currently considers joint venturing or selling its interest in Cripple Creek & Victor (CC&V) mine

The company has initiated a plan to identify a joint venture partner or a purchaser in respect of its interest in the Cripple Creek
& Victor mine in Colorado in the United States for full value. The CC&V gold mine is a surface mining operation which
provides oxidised ore to a crusher and valley leach facility, one of the largest in the world. It is included in the Americas
reporting segment and was acquired by AngloGold Ashanti in 1999. The mine produced 211,000 ounces of gold in 2014.
There can be no assurance, however, that a sale and purchase agreement for this transaction will be entered into or that any
sales transaction will be completed.
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ANNUAL FINANCIAL STATEMENTS 2014
23
AngloGold Ashanti currently considers selling its interests in Société d’Exploitation des Mines d’Or de Sadiola S.A.
(Sadiola) and Société d’Exploitation des Mines d’Or de Yatela S.A. (Yatela)

The company currently intends to dispose of its 41% stake in Sadiola and its 40% stake in Yatela. The mines are both
situated in western Mali and are included in the Continental Africa reporting segment. The Sadiola and Yatela mines
produced 85,000 and 11,000 attributable ounces of gold, respectively, in 2014.

Management was approached by a potential buyer for both mines who meets management’s qualifying criteria and has asked
for a binding bid. There can be no assurance, however, that a sale and purchase agreement for these transactions will be
entered into or that any sales transactions will be completed.
Material change
There has been no material change in the financial results or trading position of the AngloGold Ashanti group since the
publication of the report for the fourth quarter and year ended 31 December 2014 on 23 February 2015 and the date of this
report. These results were audited by Ernst & Young Inc. who issued an unqualified audit report on 19 March 2015.
Annual general meetings
At the 70th Annual General Meeting held on Monday, 14 May 2014, shareholders passed resolutions relating to the:
·
re-appointment of Ernst & Young Inc. as auditors of the company;
·
election of RN Duffy as an Executive Director;
·
re-election of R Gasant as Non-Executive Director;
·
re-election of SM Pityana as a Non-Executive Director;
·
appointment of Prof LW Nkuhlu as a member of the Audit and Risk Committee of the company;
·
appointment of MJ Kirkwood as a member of the Audit and Risk Committee of the company;
·
appointment of R Gasant as a member of the Audit and Risk Committee of the company;
·
appointment of RJ Ruston as a member of the Audit and Risk Committee of the company;
·
renewal of the general authority placing 5% of the number of ordinary shares of the company in issue from time to time
under the control of the directors;
·
advisory endorsement of the AngloGold Ashanti remuneration policy;
·
approved, as a special resolution, the granting of a general authority to directors to issue for cash those ordinary shares
which the directors are authorised to allot and issue, subject to certain limitations of the Listings Requirements of the JSE;
·
approved, as a special resolution, increase in Non-Executive Directors’ remuneration for their service as directors;
·
approved, as a special resolution, approval of the increase in Non-Executive Directors’ fees for board and committee
meetings;
·
approved, as a special resolution, the amendment of the company’s Memorandum of Incorporation;
·
approved, as a special resolution, the amendment of the rules of the company’s Long Term Incentive Plan;
·
approved, as a special resolution, the amendment of the rules of the company’s Bonus Share Plan;
·
approved, as a special resolution a general authority to acquire the company’s own shares;
·
approval, as a special resolution, the granting of financial assistance by the company in terms of Sections 44 and 45 of the
Companies Act; and
·
approved by ordinary resolution the election of DL Hodgson as a Non-Executive Director.
Notice of the 71st Annual General Meeting to be held in the Auditorium, 76 Jeppe Street, Newtown, Johannesburg at 11:00
(South African time) on 6 May 2015, will be printed as a separate document and distributed to shareholders in accordance
with the Companies Act.
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ANNUAL FINANCIAL STATEMENTS 2014
24
Directorate and secretary
The following changes to the board of directors took place during the period from 1 January 2014 to 31 December 2014 and
subsequent to year-end:
Executive Directors
Richard Duffy resigned as an Executive Director and Chief Financial Officer on 30 September 2014 and Christine Ramon was
appointed Executive Director and Chief Financial Officer on 1 October 2014.
Non-Executive Directors
·
On 17 February 2014, Tito Mboweni stepped down as Chairman of the Board and resigned as Non-Executive Director.
Sipho Pityana was elected as Chairman by the Board. Professor Wiseman Nkuhlu assumed the new role of Lead
Independent Director of the board and of Deputy Chairman in March 2014.
·
David Hodgson was appointed as Independent Non-Executive Director with effect from 25 April 2014.
·
Albert Garner and Maria Richter were appointed as Independent Non-Executive Directors with effect from 1 January 2015.
The following directors retired at the Annual General Meeting held on 14 May 2014: Rhidwaan Gasant, Sipho Pityana and
Tito Mboweni. Tito Mboweni did not make himself available for re-election.
In terms of the company’s Memorandum of Incorporation, the following directors will retire at the Annual General Meeting to
be held on 6 May 2015: Prof Wiseman Nkuhlu, Nozipho January-Bardill and Rodney Ruston, and are eligible for re-election.
The names and biographies of the directors of the company are listed in the Integrated Report 2014.
Company Secretary
There was no change to the office of Company Secretary during 2014. The name, business and postal address of the
Company Secretary are set out under Administrative Information on page 187.
Directors’ and Prescribed Officers’ interests in AngloGold Ashanti shares
The interests of directors, prescribed officers and their associates in the ordinary shares of the company at
31 December 2014, individually did not exceed 1% of the company’s issued ordinary share capital are disclosed in note 35 of
the group financial statements.
Details of service contracts of directors and prescribed officers
In accordance with Section 30(4)(e) of the Companies Act the salient features of the service contracts of directors and
prescribed officers have been disclosed in the Remuneration Report.
Annual Financial Statements
The financial statements set out fully the financial position, results of operations and cash flows of the group and the company
for the financial year ended 31 December 2014.
The directors of AngloGold Ashanti are responsible for the maintenance of adequate accounting records and the preparation
of the annual financial statements and related information in a manner that fairly presents the state of affairs of the company,
in conformity with the Companies Act and in terms of the JSE Listings Requirements.
The directors are also responsible for the maintenance of effective systems of internal control which are based on established
organisational structures and procedures. These systems are designed to provide reasonable assurance as to the reliability of
the annual financial statements, and to prevent and detect material misstatement and loss.
In preparing the annual financial statements, the group has complied with International Financial Reporting Standards (IFRS)
and used appropriate accounting policies supported by pragmatic judgements and estimates.
AngloGold Ashanti, through its Executive Committee, reviews its short-, medium- and long-term funding, treasury and liquidity
requirements and positions monthly. The board of directors also reviews these on a quarterly basis at its meetings.
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ANNUAL FINANCIAL STATEMENTS 2014
25
Cash and cash equivalents, net of bank overdraft, at 31 December 2014 amounted to $468m (2013: $628m), and together
with cash budgeted to be generated from operations in 2014 and the net incremental borrowing facilities available, are in
management’s view, adequate to fund operating, mine development, capital expenditure and financing obligations as they fall
due for at least the next 12 months.
Taking these factors into account, the directors of AngloGold Ashanti have formed the judgement that, at the time of approving
the financial statements for the year ended 31 December 2014, it is appropriate to prepare these financial statements on a
going concern basis.
Based on the results of a formal documented review of the company’s system of internal controls and risk management,
covering both the adequacy in design and effectiveness in implementation, performed by the internal audit function during the
year 2014:
·
information and explanations provided by line management;
·
discussions held with the external auditors on the results of the year-end audit; and
·
the assessment by the Audit and Risk Committee,
the board has concluded that nothing has come to its attention that caused it to believe that the company’s system of internal
controls and risk management are not effective and that the internal financial controls do not form a sound basis for the
preparation of reliable financial statements.
The directors are of the opinion that these financial statements fairly present the financial position of the company and group
at 31 December 2014 and the results of their operations and cash flow information for the year then ended in accordance with
IFRS.
The external auditor, Ernst & Young Inc., is responsible for independently auditing and reporting on the financial statements in
conformity with International Standards on Auditing and the Companies Act of South Africa. Their unqualified opinion on these
financial statements appears in the Independent Auditor’s Report, on page 41 of this report.
The company will file a set of financial statements in accordance with IFRS in its annual report on Form 20-F as must be filed
with the US Securities and Exchange Commission by no later than 30 April 2015. Copies of the annual report on Form 20-F
will be made available once the filing has been made, on request, from the Bank of New York Mellon, or from the company’s
corporate office detailed in the section Administrative Information.
Investments
Particulars of the group’s Principal subsidiaries and operating entities are presented in this report on page 178.


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ANNUAL FINANCIAL STATEMENTS 2014
26
REMUNERATION AND HUMAN RESOURCES COMMITTEE –
CHAIRMAN’S LETTER
Dear Shareholders,
On behalf of the Board I am pleased to present you with the directors’ remuneration report for the year ended
31 December 2014. The Remuneration and Human Resources Committee, (the “Committee”), in its deliberations took into
consideration the particular context of the business in 2014.
AngloGold Ashanti has over the past year continued to take decisive action to weather persistent weakness in the gold price,
which was 10% lower year-on-year and 24% off its peak reached in 2012. Active management of the portfolio to improve
margins included the sale of the Navachab mine in June; significantly increased productivity through the change to bulk
underground mining at Sunrise Dam; the announcement of the closure of unprofitable mines; progress to plan at the Cripple
Creek & Victor expansion project; successful ramp-up of the new, low-cost Tropicana and Kibali mines; and the successful
transition to limited operation phase at the loss-making Obuasi mine in parallel with advancement of the feasibility study into
its redevelopment as a productive, high-grade mechanised mine.
The company achieved an 8% growth in production over 2013 levels, together with a 22% reduction in all-in costs. Cash flow
from operations and adjusted EBITDA were steady at $1,220m and $1,665m respectively, despite the lower gold price, while
free cash outflow from operations improved markedly from $1,058m to $112m. Were the retrenchments of the Obuasi
workforce and the Rand Refinery loan to be excluded, free cash inflow would have risen to $142m. The slate of operational
and cash flow improvements were achieved alongside AngloGold Ashanti’s best ever safety performance.
The Committee has measured performance in line with the guidance and feedback received from our shareholder
engagements, which, led to the implementation of new incentive scheme metrics. The performance metrics for both our long
term incentive (“LTI”) and short term incentive (“STI”) are clearly aligned with our strategy. This can be seen in the diagrams
on pages 38 and 39. The change assists in enhancing the protection and creation of shareholder value. In addition to this,
from shareholder recommendations, we have reviewed and adjusted our comparator groups to better match the market in
which we operate.
The Committee has noted and/ or been involved with the following events and decisions over the past year:
·
The Executive Directors for 2014 receiving long term incentives that have paid out below target (just over a third of their
maximum potential) which is reflective of sub-optimal results on adjusted headline earnings per share, total shareholder
return and the generation of reserves, despite excellent safety results.
·
Short term incentives that capture the year’s success in terms of production, the improvement in free cash flow and safety.
·
The Chief Executive Officer has again, for the second year running informed the Board that he will not accept an annual
increase and has elected to take his 2015 cash bonus in deferred shares.
·
The departure of Yedwa Simelane, an Executive Committee member, from AngloGold Ashanti in the middle of 2014.
·
The replacement of Richard Duffy, the interim Chief Financial Officer with the appointment of Christine Ramon, who brings
the right skills to the business at a time when cost management is of the utmost importance.
With respect to Non-Executive Directors fees:
·
The equalisation of the remaining differentiation between the South African and off-shore Directors has been completed.
·
The board has elected not to take a fee increase for 2015.
The Remuneration Report has been compiled with the intent to provide greater consistency and transparency which will be the
Committee’s focus going forward. The Remuneration Report covers the period 1 January 2014 to 31 December 2014.
Michael Kirkwood
Chairman: Remuneration and Human Resources Committee
19 March 2015


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ANNUAL FINANCIAL STATEMENTS 2014
27
REMUNERATION REPORT
Throughout this report the term “Executive Directors” is used to refer to the Chief Executive Officer (CEO) and the Chief
Financial Officer (CFO), whilst the remaining members of the Executive Committee are referred to as EXCO or Prescribed
Officers. The full Executive Committee is also referred to as the Executive Management team or executives. The Committee
is responsible for the pay governance associated with these roles and will talk to all three categories or separately highlight
individual roles where it is appropriate.
REMUNERATION POLICY
Remuneration Philosophy
“People are our business…Our business is people” is our core leadership philosophy which drives the remuneration approach
to ensure an ongoing focus on retaining our employees during turbulent times through fair, transparent and competitive
remuneration in the appropriate market.
Key principles of the Remuneration Policy
In order to continue to support our remuneration philosophy we have a remuneration policy, which is based on the following
key principles:
·
Remunerate to drive and reward behaviours and performance of our employees and executives which align the
organisation, shareholder and employee strategic goals.
·
Ensure that performance metrics are demanding, sustainable and cover all aspects of the business including both the key
financial and non-financial drivers.
·
Structure remuneration ensuring that our values are maintained and the correct governance frameworks are applied
across our remuneration decisions and practices.
·
Apply the appropriate remuneration benchmarks.
·
Provide competitive rewards to attract, motivate and retain highly skilled executives and staff vital to the success of the
organisation.
Remuneration design and pay mix
When determining appropriate remuneration the Committee considers:
1.   The potential maximum total remuneration that each executive could earn related to performance.
2.   External influences primarily being:
·
shareholder views and recommendations associated to executive remuneration;
·
economic trends;
·
competitive pressure; and
·
the labour market and the pay-gap between the Executive Management team and the rest of the employee population
in the company.
3.   Market benchmarks, choosing the appropriate benchmarks in a market with similar attributes including; complexity, size
and geographic spread.

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ANNUAL FINANCIAL STATEMENTS 2014
28
The graphs that follow provide the pay mix for the Executive Management team at below expected performance, threshold,
target and maximum:
Chief Executive Officer




















Chief Financial Officer



















EXCO




















R12m
R12m
R12m
R12m
R3m
R3m
R3m
R3m
R2m
R5m
R10m
R4m
R7m
R14m
R15m
R23m
R30m
Below threshold
Threshold
Target
Maximum
Pay elements in Rand millions
Base Salary
Benefits
BSP Cash Bonus
BSP Shares
LTIP
Note: For below threshold performance there are no performance rewards.
R7m
R7m
R7m
R7m
R1m
R1m
R1m
R1m
R1m
R2m
R4m
R2m
R3m
R7m
R7m
R11m
R15m
Below threshold
Threshold
Target
Maximum
Average Pay elements in Rand millions
Base Salary
Benefits
BSP Cash Bonus
BSP Shares
LTIP
Note: For below threshold performance there are no performance rewards.
R7m
R7m
R7m
R7m
R0.9m
R0.9m
R0.9m
R0.9m
R1m
R2m
R5m
R2m
R4m
R7m
R7m
R11m
R14m
Below threshold
Threshold
Target
Maximum
Pay elements in Rand millions
Base Salary
Benefits
BSP Cash Bonus
BSP Shares
LTIP
Note: For below threshold performance there are no performance rewards.
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ANNUAL FINANCIAL STATEMENTS 2014
29
Components of remuneration
The table below details the remuneration policy for 2015 as it relates to the components of remuneration. The table details
each component’s link to the company strategy, objective, measurement and the maximum performance associated with each
component:
Remuneration element and
link to strategy
Operation and objective
Maximum opportunity
Performance measures
Base Salary
A competitive salary provided
to executives to ensure that
their experience, contribution
and appropriate market
comparisons are fairly
reflected
Base salaries are reviewed annually
and are effective 1 January each
year
The executive base salaries are
determined by considering their
performance; market conditions
against companies with a similar
geographic spread, market
complexity, size and industry; and
internal peer comparisons
The CEO makes recommendations
on the rest of the team but does not
make recommendations on his own
base salary which is reviewed by
the Committee
Executive base salary
increases and increases
for all non-bargaining unit
employees are aligned
and this is informed by
inflation, which has an
upward or downward
adjustment to recognise
individual performance
Individual performance on a
scale of 1 to 5, measured
against specific Key
Performance Indicators
(KPIs) reviewed by the
Committee. In high inflation
countries the 1-5
performance rating
determines the percentage
of the CPI increase pool an
executive will receive. In low
inflation countries a flat CPI
is applied to all executives
and employees
Pension
Provides a post retirement
benefit aligned to the
schemes in the respective
country in which he or she
operates
The funds vary depending on
jurisdiction and legislation
Defined benefit funds are not
available for new employees in line
with company policy
24.75% of base salary for
the CEO and lower
contributions for others
dependent on their
scheme
Not applicable
Medical Insurance
Provides medical aid
assistance aligned to the
schemes in the respective
country in which he or she
operates
Provided to all executives through
either a percentage of fee
contribution, reimbursement or
company provided healthcare
providers
In line with approved
policy
Not applicable
Benefits
Provided to ensure broad
competitiveness in the
respective markets
Benefits are provided based on
local market trends and can include
items such as life assurance,
disability and accidental death
insurance, assistance with tax filing,
cash in lieu of untaken leave (above
legislated minimum leave
requirements) and occasional
spousal travel as per the executive
travel guidelines
In line with approved
policy
Not applicable
Short Term Incentive (STI)
The short term incentive is
known as the Bonus Share
Plan (BSP) and is designed
to focus the executives on
delivering the key priorities
for the year through
achieving the defined
company objectives
BSP metrics are defined annually
and weightings are applied to each
of the measures. The metrics are
defined against the objectives that
most strongly drive company
performance and are heavily
weighted to production, cost and
safety




CEO:
Maximum award - 200%
of base salary
(cash 80% + deferred
equity award 120%)
Target award - 100%
(cash 40% + deferred
equity award 60%)
Threshold award - 50%
CEO:
Performance Measures:
70% company objectives
30% individual KPIs (as
reviewed by the Committee)
Both company and individual
performance are assessed
over the financial year
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ANNUAL FINANCIAL STATEMENTS 2014
30
Remuneration element and
link to strategy
Operation and objective
Maximum opportunity
Performance measures
The performance objectives
are reviewed and selected
annually based on their short
to medium term impact on
the company
The BSP has a deferral
element granted in equity
awards to ensure that the
shareholders and executive
focus remains aligned
Each metric is weighted and has a
threshold, target and stretch
definition based on the company
budget and the desired stretch
targets for the year
The BSP is delivered as a cash
element and a deferred equity
element which is fully realised after
24 months
At the end of each financial year the
Company and the CEO's
performance are assessed by the
Committee and the Board against
the defined metrics to determine the
award granted
The deferral can be delivered in
equity, or the Committee has the
discretion to deliver in cash
(cash 20% + deferred
equity award 30%)
Below threshold
achievement results in a
0% payment
CFO:
Maximum award - 175%
(cash 70% + deferred
equity award 105%)
Target award – 87.5%
(cash 35% + deferred
equity award 52.5%)
Threshold award –
43.75%
(cash 17.5% + deferred
equity award 26.25%)
Below threshold
achievement results in a
0% payment
EXCO:
Maximum award - 150%
(cash 60% + deferred
equity award 90%)
Target award - 75%
(cash 30% + deferred
equity award 45%)
Threshold award – 37.5%
(cash 15% + deferred
equity award 22.5%)
Below threshold
achievement results in a
0% payment
CFO and EXCO:
Performance Measures:
60% company objectives
40% individual KPIs (as
reviewed by the CEO and
the Committee)
Both company and individual
performance are assessed
over the financial year
The company metrics
measured are:
·
Adjusted headline
earnings per share
(AHEPS)
·
Production
·
All-in sustaining costs
·
Free cash flow
·
Safety, health and
environment
·
Ore reserve pre-
depletion
·
Project delivery/ capital
expenditure
Co-Investment Plan (CIP)
The Co-Investment Plan is a
retention plan designed to
assist executives to achieve
their minimum shareholding
requirements. This is
accomplished through
encouraging them to invest
their cash bonus in equity
which will be matched by the
company in the short to
medium term
The CIP is offered annually to
create shareholding with the
executives to meet the requirements
of the minimum shareholding
requirements (implemented in
2013). These were implemented to
achieve the alignment of the
shareholder and executives
interests
The executive invests up to 50% of
their net cash bonus in company
shares, after a 12 and 24 month
period the company then offers an
equity match provided the executive
remains in employment and retains
the original investment
150% of the originally
invested equity over a 24
month deferred period
Quantum based on STI
achievement
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ANNUAL FINANCIAL STATEMENTS 2014
31
Remuneration element and
link to strategy
Operation and objective
Maximum opportunity
Performance measures
Long Term Incentive Plan (LTIP)
The primary intention of the
Long Term Incentive Plan is
to ensure that the medium to
long term interest of the
executive and the
shareholders are aligned,
providing reward to the
executive and wealth
creation to the shareholders
when the strategic
performance drivers are
achieved
The strategic drivers are
used in defining the LTIP
metrics. These are depicted
in the strategy diagram that
follows
The LTIP metrics are reviewed and
defined annually in accordance with
the strategy. Weightings are
provided to the metrics which must
be achieved over a three year
period
The Total Shareholder Return
(TSR) was recommended as the
most appropriate measure by
shareholders and is measured
against a carefully selected peer
group of 10 comparators that was
recommended by the Committee
and approved by the board. The
relative TSR performance metric
has the highest weighting
contributing to 50% of the final LTIP
score
The score against all the relevant
measures will determine what
percentage of the total awards will
vest at the end of the three-year
(cliff-vesting) period
CEO:
Range of award – 160 -
250% of base salary
CFO:
Range of award – 140 -
200% of base salary
EXCO:
Range of award – 140 -
200% of base salary
TSR accounts for 50% of the
LTIP. It is calculated by the
growth in capital from
purchasing a share in the
company assuming that the
dividends are reinvested
each time they are paid
The TSR is then used to
rank the performance of the
company against its
competitors
The remaining 50%
performance measurement
includes:
·
Operational performance
·
Future optionality
(measured through
technology innovation
and resource and
reserves)
·
Development and
attraction of people
(measured through
succession cover ratio
and talent retention)
·
A safety multiplier
applied to the total score
which can either enhance
or detract from the final
score by 20%
The safety multiplier
cannot however increase
the maximum pay-out
above the defined caps
Linking Strategy, Performance and Remuneration
The individual executive KPIs used to determine the individual portion of short-term incentives are aligned with the company’s
strategic focus areas through the following deliverables:
(1)
Focus on people, safety and sustainability – Safety: Improve safety performance and reduce fatalities; People: Develop
and retain the people who are the business; and Sustainability: ensure that we retain our social licenses to operate
(2)
Ensure financial flexibility – Being prudent and proactive in balance sheet management by improving earnings, returns
and free cash flow; ensuring liquidity and headroom; and mitigating refinancing risks
(3)
Optimise overhead, costs and capital expenditure – Reduce direct operating costs, overheads and indirect spend and
optimise annual total capital spend
(4)
Improve portfolio quality A strong focus on selecting only key projects that add value to the portfolio
(5)
Maintain long-term optionality, albeit at a reasonable cost – Ramp-up the greenfield exploration programmes at selected
international sites


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ANNUAL FINANCIAL STATEMENTS 2014
32



































Recruitment Policy
When recruiting executives, a comparative benchmarking exercise will be done to determine the size, nature and complexity
of the role and also the skills availability in the market prior to making a competitive offer. For new appointments the
Committee may compensate for remuneration forfeited. The intention is to not grant more than what the executive would have
received from the Company in a 12 month period. However, the Committee does have the discretion to compensate higher
values if through a fair value valuation it can be demonstrated that the forfeited amounts exceed the grants. The Committee
will compensate the forfeits through a combination of equity and cash.
Termination Policy
The Executive Management team all have open ended contracts (except where prescribed retirement ages apply), but do
have termination periods defined in their contracts. In addition the incentive scheme rules are very clear on the termination
provisions by termination category. In the event of a termination the company has the discretion to allow the executive to
either work out their notice or to pay the base pay for the stipulated notice period in lieu of the notice.
Reason for termination
Voluntary resignation
Dismissal/
termination
for cause
Normal & early retirement,
retrenchment and death
Mutual separation
Base salary
Paid over the notice
period or as a lump sum
No payment
Base pay is paid for a defined
period based on cause and local
policy as executives have
different employment entities
Paid over the notice
period or as a lump sum
Pension
Pension contributions for
the notice period will be
paid; the lump sum would
not include pension
contributions unless it is
contractually agreed
No payment
Pension will be paid until such
time that employment ceases
Pension contributions for
the notice period will be
paid; the lump sum would
not include pension
contributions unless it is
contractually agreed
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ANNUAL FINANCIAL STATEMENTS 2014
33
Reason for termination
Voluntary resignation
Dismissal/
termination
for cause
Normal & early retirement,
retrenchment and death
Mutual separation
Medical
provisions
Where applicable medical
provision for the notice
period will be paid; the
lump sum would not
include contributions
unless it is contractually
agreed
No payment/
provision
Medical provision/ payment will
be provided until such time that
employment ceases
Where applicable
medical provision for the
notice period will be paid;
the lump sum would not
include contributions
unless it is contractually
agreed
Benefits
Applicable benefits may
continue to be provided
during the notice period
but will not be paid on a
lump sum basis
No payment
Benefits will fall away at such time
that employment ceases
Applicable benefits may
continue to be provided
during the notice period
but will not be paid on a
lump sum basis
BSP
Unvested shares lapse
Lapse all
shares (both
vested,
unexercised
and unvested)
Pro-rata unvested shares based
on the length of employment from
date of offer
The Committee
determines whether a
pro-rata portion may be
granted
LTIP
Unvested shares lapse
Lapse all
shares, (both
vested,
unexercised
and unvested)
Pro-rata unvested shares based
on the length of employment from
date of offer by applying the last
two years’ average performance
results (death has no
performance criteria applied)
The Committee
determines whether a
pro-rata portion may be
granted
CIP
Unvested matching
portion lapses
Forfeit
matching
portion of
shares
Matching shares based on the
length of employment from date
of purchase
The Committee
determines whether a
pro-rata portion may be
granted
Minimum shareholding requirements
With effect from March 2013, a Minimum Shareholding Requirement (MSR) was applied to the Executive Management team.
The Committee is of the opinion that share ownership by Executive Management team demonstrates their commitment to the
success of the company, and serves to reinforce the alignment between executive and shareholder interests.
For the purpose of the calculation only fully owned and vested awards will count towards the determination of the MSR.
Within 3 years of appointment/
from introduction of the MSR
Within 6 years of appointment/
from introduction of the MSR
Holding requirement
CEO and CFO
100% of net annual base salary
200% of net annual base salary
Indefinite
EXCO
75% of net annual base salary
150% of net annual base salary
Indefinite
Service contracts
All members of the Executive Management team have permanent employment contracts which entitle them to standard group
benefits as defined by their specific region and participation in the company’s Bonus Share Plan, and the Long Term Incentive
Plan. All recently updated executive contracts include details on participation in the Co-Investment Plan and the applicable
Minimum Share Holding Requirement.
South African executives (with the exception of the CEO and the newly appointed CFO who are remunerated 100% in South
Africa) have an off-shore retainer which is detailed under a separate contract. This reflects the percentage of their time
focused on offshore business requirements. The off-shore pay is capped at a maximum of 15% of base pay and as it is a
retainer, it is not pensionable.
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ANNUAL FINANCIAL STATEMENTS 2014
34
Change of control and notice periods
The Executive Management team contracts are reviewed annually and currently continue to include a change of control
provision. The change of control is subject to the following triggers:
·
The acquisition of all or part of AngloGold Ashanti; or
·
A number of shareholders holding less than 35% of the company’s issued share capital consorting to gain a majority of the
board and make management decisions; and
·
The contracts of Executive Management team are either terminated or their role and employment conditions are curtailed.
In the event of a change of control becoming effective, the executive will in certain circumstances be subject to both the notice
period and the change of control contract terms. The notice period applied per category of executive and the change of control
periods as at 31 December 2014 were as follows:
Executive Committee member
Notice period
Change of control
CEO
12 months
12 months
CFO
6 months
6 months
EXCO
6 months
6 months
NON-EXECUTIVE DIRECTORS REMUNERATION POLICY
Remuneration Policy
The company’s Non-Executive Directors (NEDs) are paid in accordance with the King III governance principles:
·
The Chairman, Deputy Chairman, Lead Independent Director and Committee members are all paid on the same basis.
·
A board fee is paid for the 6 annual board meetings and the Committee members receive annual committee fees for
participation. Details can be seen on page 40.
·
Fees are reviewed annually and increases implemented in July. They are set using a global comparator group which is
derived from companies with similar size, complexity and geographic spread.
·
The NEDs receive a travel allowance when they travel outside of their home country to compensate for the burden placed
on them.
Remuneration and Human Resources Committee
The Remuneration and Human Resources Committee activities are governed by the Terms of Reference (these were recently
reviewed and approved on the 30 October 2014). The primary purpose of the Committee is to operate in an independent role
as an overseer of remuneration and human resources matters with the accountability to the board. In performing this function,
the Committee discharges its oversight responsibilities relating to all compensation, including annual base salary, annual
incentive compensation, long-term incentive compensation, employment contracts, severance pay and on-going perquisites or
special benefit items and equity compensation of the company’s Executive Management team and management, including the
CEO as well as retention strategies, the design and application of material compensation programmes, and share ownership
guidelines. The committee also has oversight of talent management and succession planning strategies; transformation and
localisation strategies and any other human resources issues considered strategic in nature. This is accomplished by:
·
Reviewing and approving corporate goals and objectives relevant to the compensation of the Executive Management
team;
·
Evaluating the performance of the Executive Management team in light of these goals and objectives annually and setting
each executive’s compensation based on such evaluation;
·
Ensuring that the mix of fixed and variable pay, in base pay, shares and other elements of compensation meets the
company’s requirements and strategic objectives;
·
Linking individual pay with operational and company performance in relation to strategic objectives;
·
Considering the sentiments and views of the company’s investors;
·
Overseeing and reviewing all aspects of any share option scheme operated by or to be established by the company;
·
Regularly reviewing incentive schemes to ensure continued contribution to shareholder value and ensure that these are
administered in terms of the rules; and
·
Regularly reviewing human resources strategy aimed at ensuring the supply and retention of sufficient skilled resources to
achieve the company’s objectives.




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ANNUAL FINANCIAL STATEMENTS 2014
35
The current members of the Committee are:
Remuneration and Human
Resource Committee Members
MJ Kirkwood (Chairman and independent NED)
NP January-Bardill (Independent NED)
Prof LW Nkuhlu (Independent NED)
SM Pityana (Board Chairman)
Number of meetings held from
January to December 2014
Four
Other individuals who regularly
attended meetings
S Venkatakrishnan (CEO)
I Boninelli (EVP: People and Organisational Development)
M Hopkins representing PwC (Independent Advisor to the Committee)
C van Dyk (VP: Remuneration and Benefits and Secretary to the Committee)
Remuneration Consultants
Where appropriate, the Committee obtains advice from independent remuneration consultants. The consultants are employed
directly by the Committee and engage directly with them to ensure independence.
The Committee has appointed PwC to provide specialist, independent remuneration advice on all forms of executive and non-
executive pay.
GRS Mercer Consulting (South Africa) Pty Limited performs an independent bespoke executive survey and their advice is
primarily around salary benchmarking for both executive and non-executive pay.
PART 2 - REMUNERATION JANUARY TO DECEMBER 2014
Part 2 of the Policy is to provide detail in terms of the actual implementation of our policies through summarising the
remuneration paid to the Executive and Non-Executive Directors for the period ended 31 December 2014.
Executive Pay
Increases for 2014 were set in the climate where, in South Africa there had been large labour unrest in 2013, there had been
a focus on the wage gap and the CEO had decided not to take a pay increase for the pay period. AngloGold Ashanti faced
some difficult challenges that were successfully navigated by the Executive Team who were allocated CPI increases aligned
with those of general employees.
Market pay is benchmarked through the AngloGold Ashanti bespoke survey conducted by GRS Mercer Consulting (South
Africa) Pty Limited. For the 2014 data this survey comprised of the following peer group; Anglo American, Barrick Gold,
Kinross Gold, Sibanye, Gold Fields, Newmont, SAB Miller, Sasol, Glencor Xstrata, Mondi, Freeport McMoran and Goldcorp.
The peer group has subsequently been revised for the 2015 salary review process to ensure that it remains accurate and
provides the correct market comparison. As a result of this review, the following companies Yamana, Randgold Resources,
Harmony, Lonmin and Impala Platinum replaced Anglo American, SAB Miller, Glencor Xstrata, and Freeport McMoran.

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ANNUAL FINANCIAL STATEMENTS 2014
36
The table below summarises the Executive Directors’ and Prescribed Officers’ remuneration for the remuneration period. It
comprises of a full overview of all of the pay elements available to the executive in the 12 month period:
Appointed
with effect
from
Resigned/
retired
with effect
from
Salary (1)
Performance
related
payments (2)
Pension
Other
benefits
and
encashed
leave (3)
Exercised
BSP
Share
Award
Value
Exercised
LTIP
Share
Award
Value
Sub total
Total
Total
Figures in thousand
SA
Rands
US
Dollars(4)
Executive Directors
S Venkatakrishnan (9)
2014
Full year
12,000
-
2,970
1,149
-
-
16,119
16,119
1,488
2013
Full year
13,135
-
2,704
2,117
-
-
17,956
17,956
1,866
RN Duffy
(8)
2014
30-Sep-14
7,033
2,533
1,441
142
-
-
11,149
11,149
1,030
2013
Full year
6,589
2,659
1,341
152
-
-
10,741
10,741
1,116
KC Ramon
(10)
2014
01-Oct-14
1,750
1,284
219
14
-
-
3,267
3,267
302
Prescribed Officers
I Boninelli
2014
Full year
5,720
2,870
608
99
-
-
9,297
9,297
858
2013
Full year
5,200
3,691
553
58
-
-
9,502
9,502
987
CE Carter
(5)
2014
Full year
6,891
3,043
732
1,046
-
864
12,576
12,576
1,161
2013
Full year
6,457
2,234
686
487
1,913
1,135
12,912
12,912
1,342
GJ Ehm
(11)
2014
Full year
8,038
7,247
293
10,975
1,002
-
27,555
27,555
2,544
2013
Full year
7,349
4,433
232
85
-
-
12,099
12,099
1,257
RW Largent
(7)
2014
Full year
12,503
6,615
211
5,388
968
-
25,685
25,685
2,372
2013
Full year
10,037
4,358
1,662
2,647
1,789
1,163
21,656
21,656
2,251
DC Noko
2014
Full year
5,590
5,162
594
744
-
-
12,090
12,090
1,116
2013
Full year
4,792
1,802
509
10
-
-
7,113
7,113
739
MP O' Hare
2014
Full year
7,367
3,475
1,509
109
-
-
12,460
12,460
1,151
2013
Full year
6,697
2,719
1,363
117
-
517
11,413
11,413
1,186
ME Sanz Perez
2014
Full year
5,700
3,999
606
157
-
-
10,462
10,462
966
2013
Full year
4,864
3,573
517
53
-
-
9,007
9,007
936
YZ Simelane
(6)
2014
31-Jul-14
2,229
-
501
11,602
2,114
2,068
18,514
18,514
1,710
2013
Full year
3,865
909
787
214
-
-
5,775
5,775
600
(1)
Salaries are disclosed only for the period from or to which office is held.
(2)
The performance related payments are calculated on the year's financial results. They are the cash portion of the BSP.
(3)
Includes health care, separation payments, cash in lieu of dividends and personal travel. Surplus leave days accrued are automatically
encashed unless work requirements allow for carry over.
(4)
Values have been converted using the average annual exchange rate for 2014 of R10.8295:$1 (2013: R9.6231:$1).
(5)
Other benefits of CE Carter include pay in lieu of leave on transfer.
(6)
Other benefits of YZ Simelane include separation payments of a severance package and pay in lieu of leave.
(7)
Other benefits of RW Largent include sale of BSP shares.
(8)
RN Duffy resigned as an executive director on 30 September 2014, however pay disclosure is for full year.
(9)
S Venkatakrishnan's BSP cash bonus will be delivered in restricted shares that will be deferred to retirement or employment termination or
any corporate activity resulting in a change of control.
(10)
KC Ramon was appointed on 1 October 2014 and reflects 3 months of the year.
(11)
G Ehm - other benefits is inclusive of surplus leave sale.
As per the emolument table above for 2014 the below diagram reflects the CEO’s actual earnings against his earning
potential:
CEO Actual earnings against Target and Max
PAY 
POTEN-
TIAL



Max
R69.5 m
Target
R50.0 m
Actual
R16.1 m

At the time of the resignation of the then CEO Mark Cutifani in 2013 and prior to the appointment of the current CEO,
Srinivasan Venkatakrishnan, there were concerns around the retention of the Executive Team. The Committee considered the
18 months post Mark Cutifani’s resignation to be the most critical and as a result implemented a performance based retention
scheme which comprised of both a cash and share element. They offered this to all of the members of the Executive Team at
the time. The 18 month retention period came to an end in August 2014 and the payments are as per the table that follows:



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ANNUAL FINANCIAL STATEMENTS 2014
37
Executive Directors’ and Prescribed Officers’ once off retention bonus payment
Appointed
with effect
from
Resigned/
retired with
effect from
Cash
Retention
Bonus ZAR
Cash Retention
Bonus expressed
in US dollars
Long Term
Incentive Plan -
Retention Bonus
Share Awards
Number of Shares
Figures in thousand
2014
Executive Directors
S Venkatakrishnan (2)
Full year
-
-
23,687
RN Duffy
30-Sep-14
2,636
243
17,458
2,636
243
41,145
Prescribed Officers
I Boninelli
Full year
2,080
192
13,777
CE Carter
Full year
2,583
239
17,106
GJ Ehm
Full year
2,688
248
15,469
RW Largent
Full year
4,027
372
20,185
DC Noko
Full year
1,917
177
12,697
MP O’Hare
Full year
2,679
247
17,744
ME Sanz Perez
Full year
1,838
170
12,177
17,812
1,645
109,155
20,448
1,888
150,300 (1)
(1)
The Long Term Incentive Plan retention bonus shares are included in the note 35 to the group financial statements as a separate table.
(2)
S Venkatakrishnan received the LTIP share portion and no cash as this will be delivered in deferred restricted shares in the second quarter
of 2015.
Short Term Incentive Performance Outcomes (Bonus Share Plan - BSP)
On the short term incentives the table below summarises the AngloGold Ashanti metrics, weighting and performance against
these metrics for 2014:
BSP company performance measure 2014
Weighting
Achievement
Threshold
Target
Stretch
Production (koz)
15%
14.28%
º
All-in Sustaining Costs ($m)
15%
15.00%
º
AHEPS – Group Level (UScps)
10%
8.21%
º
Free Cash Flow ($m)
10%
10.00%
º
Project Delivery/Capex (000 oz)
15%
11.33%
º
2014 Ore Reserve pre-depletion (koz)
10%
0.00%
Safety, Health and Environment
25%
22.19%
º
Total
100%
81.01%
As displayed, the performance against the BSP metrics for the 2014 financial year exceeded expectations with a growth in
production, record safety improvements, the sale of Navachab in Namibia, delivery of a large gold deposit in Colombia and
great headway being accomplished in managing the cost and implementing a revised plan for the Ghanaian Obuasi operation.
These contributing factors resulted in the positive financial results against the budgeted targets.
The results have equated to a final STI company performance outcome of 81.01% for the BSP group result. This is the second
highest company achievement in the short term incentive scheme over the past 5 years as per the graph that follows.
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ANNUAL FINANCIAL STATEMENTS 2014
38























For 2015 the Committee has decided that the focus should be on production and all-in sustaining costs, being the two
principle drivers of earnings. To effect this revised focus, AHEPS has been removed as a performance metric and the
weighting of production and all-in sustaining costs has been increased given that these two inputs are the single largest
drivers of AHEPS.
The table below summarises the BSP 2015 metrics.
Performance measure
Weighting
Operational Production
18%
All-in sustaining costs
22%
Free cash flow
10%
Maintain/future optionality
Project delivery/Capex
15%
2015 Ore Reserve pre depletion
10%
Core value/business foundation
Safety, health and environment
25%
Total
100%
Long Term Incentive (LTIP)
The LTIP being a three year scheme had metrics implemented in 2012 in line with the company strategy at the time.
Performance measure
Weighting
Adjusted headline earnings per share (AHEPS)
30%
Total shareholder return (TSR)
30%
Safety
20%
Generation of resources
10%
Generation of reserves
10%
Total achievement
100%

83.25%
80.82%
6.44%
46.10%
81.01%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2010
2011
2012
2013
2014
BSP percentage achieved for the last 5 years
BSP % Achieved
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ANNUAL FINANCIAL STATEMENTS 2014
39
The performance against these metrics for the 2012 LTIP awards that vested on 21 February 2015 (for the period 2012 to
2014) is summarised in the table below:
Performance
measure
Performance criteria
Achievement
Allocation 2012 -
% awarded
Adjusted headline
earnings per share
(AHEPS)
AHEPS growth of at least 2% net of US inflation per
year for three years on a sliding scale
Growth was not met
0.0%
Total shareholder
return (TSR)
Ranking against 4 competitor companies
Ranked third
12.0%
Safety
A 20% year on year improvement in Fatal Injuries
Frequency Rate (FIFR) and All Injuries Frequency
Rate (AIFR) for the 3 year period
Stretch performance
was achieved
20.0%
Generation of
resources
Between 21 – 27Moz (3x7-9Moz)
measured/indicated resources
21.5Moz 5.4%
Generation of
reserves
9 – 15Moz (3x3-5Moz) published reserves achieved
over a three year period
No reserve increases
0.0%
Total LTIP award percentage
37.4%
The LTIP reflects ongoing poor performance over the three year period providing results that are aligned to those delivered in
2013 but lower than the previous years:





















The proposed 2015 LTIP is aligned to both the Strategy and the metrics that were introduced in 2014. Both financial and non-
financial measures have been introduced and are summarised in the table below:
2015 LTIP Metric Table
2015 LTIP PERFORMANCE MEASURES
Measurement
Weighting
Total Shareholder Return (TSR)
50%
Operational Performance
20%
Future Optionality
20%
Core Value (business foundation) – People
10%
Total
100%
Core Value (business foundation) – Safety Multiplier
+-20%
Total Maximum (capped at maximum earning level)
120%
82%
70%
41%
37.20%
37.40%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2008
2009
2010
2011
2012
LTIP percentage achieved for the last 5 years
LTIP % Achieved
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ANNUAL FINANCIAL STATEMENTS 2014
40
The CEO will receive 250% of his base pay as an LTIP award in 2015 while the remainder of the Executive Team members
will receive 200% of their base pay as an LTIP award in respect of 2015. These awards are all subject to meeting the above
performance conditions.
An application for 3 million additional shares will be made at the 2015 Annual General Meeting to meet the share allocation
requirements under both the STI and the LTI. Page 19 of the Directors’ Report provides details of the total share allocations
and remaining shares available for future allocations.
Non-Executive Directors' fees and allowances
In 2014 with the appointment of a new Chairman, a review of the board structure and meeting attendance was conducted; this
resulted in a revision of the board committees consolidating them from seven to five sub-committees and introducing the role
of the Lead Independent Director and Deputy Chairman. These changes resulted in a review of the board and board
committee fees and a move in the market positioning.
The table below summarises the directors’ fees for the period as well as the comparative totals for 2013 and 2012:
Non-Executive Directors' fees and allowances
Figures in thousand (1)
Director
fees
Committee
fees
Travel
allowance
Total
Total
Total
US Dollars
2014
2013
2012
SM Pityana (2)
334
86
10
430
186
175
TT Mboweni - Retired on 14 May 2014 (3)
50
25
-
75
344
357
FB Arisman
-
-
-
-
120
251
R Gasant
117
63
8
188
131
118
NP January-Bardill
117
60
10
187
140
146
MJ Kirkwood
121
91
51
263
266
94
F Ohene-Kena
-
-
-
-
54
118
LW Nkuhlu (4)
148
90
8
246
184
178
WA Nairn
-
-
-
-
71
178
RJ Ruston
117
81
42
240
251
189
DL Hodgson
88
27
10
125
-
-
Total
1,092
523
139
1,754
1,747
1,804
(1)
Directors’ compensation is disclosed in US dollars.
(2)
On 17 February 2014, Sipho Pityana was appointed chairman of the board.
(3)
Fees are disclosed only for the period to which office is held.
(4)
Prof. Nkuhlu assumed the role of Lead Independent Director in February 2014, and Deputy Chairman in March 2014.



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ANNUAL FINANCIAL STATEMENTS 2014
41
EY
102 Rivonia Road
Sandton
Private Bag X14
Sandton
2146
Ernst & Young Incorporated
Co. Reg. No. 2005/002308/21
Tel: +27 (0) 11 772 3000
Fax: +27 (0) 11 772 4000
Docex 123 Randburg
ey.com





INDEPENDENT AUDITOR’S REPORT
To the shareholders of AngloGold Ashanti Limited

REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS
We have audited the consolidated and separate financial statements of AngloGold Ashanti Limited set out on pages 43 to
179, which comprise the statements of financial position as at 31 December 2014 and the statements of comprehensive
income, statements of changes in equity and statements of cash flows for the year then ended, and the notes, comprising a
summary of significant accounting policies and other explanatory information.
DIRECTORS’ RESPONSIBILITY FOR THE CONSOLIDATED FINANCIAL
STATEMENTS
The company’s directors are responsible for the preparation and fair presentation of these consolidated and separate financial
statements in accordance with International Financial Reporting Standards and the requirements of the Companies Act of
South Africa, and for such internal control as the directors determine is necessary to enable the preparation of consolidated
and separate financial statements that are free from material misstatement, whether due to fraud or error.
AUDITOR’S RESPONSIBILITY
Our responsibility is to express an opinion on these consolidated and separate financial statements based on our audit. We
conducted our audit in accordance with International Standards on Auditing. Those standards require that we comply with
ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the consolidated and
separate financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial
statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material
misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design
audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used
and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the
financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
OPINION
In our opinion, the consolidated and separate financial statements present fairly, in all material respects, the consolidated and
separate financial position of AngloGold Ashanti as at 31 December 2014, and its consolidated and separate financial
performance and consolidated and separate cash flows for the year then ended in accordance with International Financial
Reporting Standards, and the requirements of the Companies Act of South Africa.
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ANNUAL FINANCIAL STATEMENTS 2014
42
OTHER REPORTS REQUIRED BY THE COMPANIES ACT
As part of our audit of the consolidated and separate financial statements for the year ended 31 December 2014, we have
read the Directors’ Report, the Audit and Risk Committee’s Report and the Company Secretary’s Certificate for the purpose of
identifying whether there are material inconsistencies between these reports and the audited consolidated and separate
financial statements. These reports are the responsibility of the respective preparers. Based on reading these reports we have
not identified material inconsistencies between these reports and the audited consolidated and separate financial statements.
However, we have not audited these reports and accordingly do not express an opinion on these reports.
Ernst & Young Inc
Director – Roger Hillen
Registered Auditor
Chartered Accountant (SA)
102 Rivonia Road,
Sandton, Johannesburg
19 March 2015








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ANNUAL FINANCIAL STATEMENTS 2014
43
GROUP – INCOME STATEMENT
For the year ended 31 December
Figures in millions
Notes
2014
2013
2012
US Dollars
Revenue
3
5,378
5,708
6,632
Gold income
2,3
5,218
5,497
6,353
Cost of sales
4
(4,190)
(4,146)
(3,964)
Gain (loss) on non-hedge derivatives and other commodity contracts
37
15
94
(35)
Gross profit
2
1,043
1,445
2,354
Corporate administration, marketing and other expenses
5
(92)
(201)
(291)
Exploration and evaluation costs
(144)
(255)
(395)
Other operating expenses
6
(28)
(19)
(47)
Special items
7
(260)
(3,410)
(402)
Operating profit (loss)
519
(2,440)
1,219
Dividends received
3
-
5
7
Interest received
3
24
39
43
Exchange (loss) gain
(7)
14
8
Finance costs and unwinding of obligations
8
(278)
(296)
(231)
Fair value adjustment on $1.25bn bonds
(17)
(58)
-
Fair value adjustment on option component of convertible bonds
-
9
83
Fair value adjustment on mandatory convertible bonds
-
356
162
Share of associates and joint ventures' loss
9
(25)
(162)
(30)
Profit (loss) before taxation
216
(2,533)
1,261
Taxation 12
(255)
333
(346)
(Loss) profit for the year
(39)
(2,200)
915
Allocated as follows
Equity shareholders
(58)
(2,230)
897
Non-controlling interests
19
30
18
(39)
(2,200)
915
Basic (loss) earnings per ordinary share (cents)
13
(14)
(568)
232
Diluted (loss) earnings per ordinary share (cents)
13
(14)
(631)
177



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ANNUAL FINANCIAL STATEMENTS 2014
44
GROUP – STATEMENT OF COMPREHENSIVE INCOME
For the year ended 31 December
Figures in million
2014
2013
2012
US Dollars
(Loss) profit for the year
(39)
(2,200)
915
Items that will be reclassified subsequently to profit or loss:
Exchange differences on translation of foreign operations
(201)
(433)
(92)
Net loss on available-for-sale financial assets
-
(23)
(27)
Release on impairment of available-for-sale financial assets (note 7)
2
30
16
Release on disposal of available-for-sale financial assets
(1)
(1)
-
Cash flow hedges
-
1
-
Deferred taxation thereon
(1)
2
6
-
9
(5)
Items that will not be reclassified subsequently to profit or loss:
Actuarial (loss) gain recognised
(22)
69
(14)
Deferred taxation rate change thereon
-
-
(9)
Deferred taxation thereon
6
(20)
3
(16)
49
(20)
Other comprehensive loss for the year, net of tax
(217)
(375)
(117)
Total comprehensive (loss) income for the year, net of tax
(256)
(2,575)
798
Allocated as follows
Equity shareholders
(275)
(2,605)
780
Non-controlling interests
19
30
18
(256)
(2,575)
798




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ANNUAL FINANCIAL STATEMENTS 2014
45
GROUP – STATEMENT OF FINANCIAL POSITION
As at 31 December
Figures in millions
Notes
2014
2013
2012
US Dollars
ASSETS
Non-current assets
Tangible assets
15
4,863
4,815
7,776
Intangible assets
16
225
267
315
Investments in associates and joint ventures
18
1,427
1,327
1,047
Other investments
19
126
131
167
Inventories
20
636
586
610
Trade and other receivables
22
20
29
79
Deferred taxation
30
127
177
97
Cash restricted for use
23
36
31
29
Other non-current assets
21
25
41
7
7,485
7,404
10,127
Current assets
Other investments
19
-
1
-
Inventories
20
888
1,053
1,213
Trade and other receivables
22
278
369
472
Cash restricted for use
23
15
46
35
Cash and cash equivalents
24
468
648
892
1,649
2,117
2,612
Non-current assets held for sale
25
-
153
-
1,649
2,270
2,612
Total assets
9,134
9,674
12,739
EQUITY AND LIABILITIES
Share capital and premium
26
7,041
7,006
6,742
Accumulated losses and other reserves
(4,196)
(3,927)
(1,269)
Shareholders' equity
2,845
3,079
5,473
Non-controlling interests
26
28
21
Total equity
2,871
3,107
5,494
Non-current liabilities
Borrowings
27
3,498
3,633
2,724
Environmental rehabilitation and other provisions
28
1,052
963
1,238
Provision for pension and post-retirement benefits
29
147
152
221
Trade, other payables and deferred income
31
15
4
10
Derivatives
37
-
-
10
Deferred taxation
30
567
579
1,084
5,279
5,331
5,287
Current liabilities
Borrowings
27
223
258
859
Trade, other payables and deferred income
31
695
820
979
Bank overdraft
24
-
20
-
Taxation
32
66
81
120
984
1,179
1,958
Non-current liabilities held for sale
25
-
57
-
984
1,236
1,958
Total liabilities
6,263
6,567
7,245
Total equity and liabilities
9,134
9,674
12,739
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ANNUAL FINANCIAL STATEMENTS 2014
46
GROUP – STATEMENT OF CASH FLOWS
For the year ended 31 December
Figures in millions
Notes
2014
2013
2012
US Dollars
Cash flows from operating activities
Receipts from customers
5,351
5,709
6,523
Payments to suppliers and employees
(3,978)
(4,317)
(4,173)
Cash generated from operations
33
1,373
1,392
2,350
Dividends received from joint ventures
-
18
72
Taxation refund
32
41
23
54
Taxation paid
32
(194)
(187)
(507)
Net cash inflow from operating activities
1,220
1,246
1,969
Cash flows from investing activities
Capital expenditure
- project capital
(289)
(594)
(779)
- stay-in-business capital
(724)
(907)
(1,146)
Interest capitalised and paid
(1)
(5)
(12)
Expenditure on intangible assets
(5)
(68)
(79)
Proceeds from disposal of tangible assets
31
10
5
Other investments acquired
(79)
(91)
(97)
Proceeds from disposal of other investments
73
81
86
Investments in associates and joint ventures
(65)
(472)
(349)
Proceeds from disposal of associates and joint ventures
-
6
20
Loans advanced to associates and joint ventures
(56)
(41)
(65)
Loans repaid by associates and joint ventures
20
33
1
Dividends received
-
5
7
Proceeds from disposal of subsidiary
25, 34
105
2
6
Cash in subsidiary acquired
34
-
-
5
Cash in subsidiary disposed
34
-
-
(31)
Cash balances in assets held for sale
2
(2)
-
Acquisition of subsidiary and loan
34
-
-
(335)
Decrease (increase) in cash restricted for use
24
(20)
(3)
Interest received
21
23
36
Loans advanced
-
-
(45)
Net cash outflow from investing activities
(943)
(2,040)
(2,775)
Cash flows from financing activities
Proceeds from issue of share capital
-
-
2
Proceeds from borrowings
611
2,344
1,432
Repayment of borrowings
(761)
(1,486)
(217)
Finance costs paid
(245)
(200)
(145)
Acquisition of non-controlling interest
-
-
(215)
Revolving credit facility and bond transaction costs
(9)
(36)
(30)
Dividends paid
(17)
(62)
(236)
Net cash (outflow) inflow from financing activities
(421)
560
591
Net decrease in cash and cash equivalents
(144)
(234)
(215)
Translation
(16)
(30)
(5)
Cash and cash equivalents at beginning of year
628
892
1,112
Cash and cash equivalents at end of year
24
468
628
892


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ANNUAL FINANCIAL STATEMENTS 2014
47
GROUP – STATEMENT OF CHANGES IN EQUITY
Figures in million
Equity holders of the parent
Share
capital
and
premium
Other
capital
reserves (1)
Accumulated
losses (2)
Cash
flow
hedge
reserve (3)
Available-
for-sale
reserve (4)
Actuarial
(losses)
gains
Foreign
currency
translation
reserve
Total
Non-
controlling
interests
Total
equity
US Dollars
Balance at 31 December 2011
6,689
171
(1,351)
(2)
18
(73)
(469)
4,983
137
5,120
Profit for the year
897
897
18
915
Other comprehensive loss
(5)
(20)
(92)
(117)
(117)
Total comprehensive income
(loss)
-
-
897
-
(5)
(20)
(92)
780
18
798
Shares issued
53
53
53
Share-based payment for
share awards net of exercised
15
15
15
Acquisition of non-controlling
interest
(5)
(144)
(144)
(71)
(215)
Disposal of subsidiary (6)
-
(45)
(45)
Dividends paid (note 14)
(215)
(215)
(215)
Dividends of subsidiaries
-
(17)
(17)
Translation
(9)
7
3
1
(1)
-
Balance at 31 December 2012
6,742
177
(806)
(2)
13
(90)
(561)
5,473
21
5,494
Loss for the year
(2,230)
(2,230)
30
(2,200)
Other comprehensive income
(loss)
1
8
49
(433)
(375)
(375)
Total comprehensive (loss)
income
-
-
(2,230)
1
8
49
(433)
(2,605)
30
(2,575)
Shares issued (7)
264
264
264
Share-based payment for
share awards net of
exercised
(8)
(13)
(13)
(13)
Dividends paid (note 14)
(40)
(40)
(40)
Dividends of subsidiaries
-
(23)
(23)
Translation
(28)
15
(3)
16
-
-
Balance at 31 December 2013
7,006
136
(3,061)
(1)
18
(25)
(994)
3,079
28
3,107
Loss for the year
(58)
(58)
19
(39)
Other comprehensive loss
(16)
(201)
(217)
(217)
Total comprehensive loss
-
-
(58)
-
-
(16)
(201)
(275)
19
(256)
Shares issued
35
35
35
Share-based payment for
share awards net of exercised
6
6
6
Dividends of subsidiaries
-
(21)
(21)
Translation
(10)
10
(1)
1
-
-
Balance at 31 December 2014
7,041
132
(3,109)
(1)
17
(40)
(1,195)
2,845
26
2,871
(1)
Other capital reserves includes a surplus on disposal of company shares held by companies prior to the formation of AngloGold Ashanti
Limited of $12m (2013: $14m; 2012: $17m), surplus on equity transaction of joint venture of $36m (2013: $36m; 2012: $36m), share of
associates and joint ventures' other comprehensive loss of $1m (2013: $2m; 2012: $1m), equity items for share-based payments of $82m
(2013: $85m; 2012: $123m) and other reserves.
(2)
Included in accumulated losses are retained earnings totaling $184m (2013: $83m; 2012: $181m) arising at equity accounted investments
which may not be remitted without third party consent.
(3)
Cash flow hedge reserve represents the effective portion of fair value gains or losses in respect of cash flow hedges that expired in prior
periods. The cash flow hedge reserve shall remain in equity and will unwind over the life of Serra Grande mine.
(4)
Available-for-sale reserve represents fair value gains or losses on available-for-sale financial assets.
(5)
On 28 June 2012, AngloGold Ashanti Limited acquired the remaining 50% shareholding in the Serra Grande mine from Kinross Gold
Corporation for $220m less $5m for dividends declared and paid to minorities.
(6)
In early December 2012, AngloGold Ashanti Limited disposed of a 5% interest in Rand Refinery (Pty) Limited, resulting in Rand Refinery (Pty)
Limited being reported as an associate.
(7)
Includes share awards exercised and delivery of 18,140,000 shares to settle the outstanding 6% Mandatory Convertible Subordinated Bonds.
(8)
Includes reassessment of estimated vesting profile related to the accelerated share options.



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ANNUAL FINANCIAL STATEMENTS 2014
48
GROUP – NOTES TO THE FINANCIAL STATEMENTS
For the year ended 31 DECEMBER

   ACCOUNTING POLICIES
Statement of compliance
The consolidated and company financial statements are prepared in compliance with International Financial Reporting
Standards (IFRS) and Interpretations of those standards, as issued by the International Accounting Standards Board
(IASB) in the English language, the South African Institute of Chartered Accountants Financial Reporting Guides as issued
by the Accounting Practices Committee, Financial reporting Pronouncements as issued by Financial Reporting Standards
Council, JSE listings requirements and in the manner required by the South African Companies Act, 2008.
New standards and interpretations issued
The financial statements have been drawn up on the basis of accounting standards, interpretations and amendments
effective at the beginning of the accounting period on 1 January 2014. The new standards, interpretations and
amendments effective from 1 January 2014 had no impact on the group.
AngloGold Ashanti Limited is in the process of assessing the significance of new standards, interpretations and
amendments to standards in issue that are not yet adopted.
1.1   BASIS OF PREPARATION
The financial statements are prepared according to the historical cost convention, except for the revaluation of certain
financial instruments to fair value. The group’s accounting policies as set out below are consistent in all material respects
with those applied in the previous year.
The group financial statements are presented in US dollars.
The group financial statements incorporate the financial statements of the company, its subsidiaries and its interests in
joint ventures and associates. The financial statements of all material subsidiaries, the Environmental Rehabilitation Trust
Fund and joint ventures, are prepared for the same reporting period as the holding company, using the same accounting
policies.
Subsidiaries are all entities (including structured entities) over which the group has control. The group controls an entity
when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect
those returns through its power over the entity. Control would generally exist where the group owns more than 50% of the
voting rights, unless the group and other investors collectively control the entity where they must act together to direct the
relevant activities. In such cases, as no investor individually controls the entity the investment is accounted for as an
equity method investment or a joint operation. Subsidiaries are fully consolidated from the date on which control is
transferred to the group. They are de-consolidated from the date on which control ceases. The group re-assesses whether
or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three
elements of control.
The acquisition of non-controlling interests is reflected as an equity transaction. The entire difference between the cost of
the additional interest and the non-controlling interests’ fair value of its share at the date of acquisition is reflected as a
transaction between owners.
Disclosures for non-controlling interests are assessed by reference to consolidated non-controlling interest.
Intra-group transactions, balances and unrealised gains and losses on transactions between group companies, including
any resulting tax effect are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of
an impairment of the asset transferred.
Subsidiaries are accounted for at cost and are adjusted for impairments where appropriate in the company financial
statements.
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ANNUAL FINANCIAL STATEMENTS 2014
49
1.2  SIGNIFICANT ACCOUNTING JUDGEMENTS AND ESTIMATES
Use of estimates
The preparation of the financial statements requires the group’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 judgement based on various assumptions and other factors such as historical
experience, current and expected economic conditions, and in some cases actuarial techniques. Actual results could differ
from those estimates.
The more significant areas requiring the use of management estimates and assumptions relate to Ore Reserve that are
the basis of future cash flow estimates and unit-of-production depreciation, depletion and amortisation calculations;
environmental, reclamation and closure obligations; estimates of recoverable gold and other materials in heap leach pads;
asset impairments/ reversals (including impairments of goodwill); and write-downs of inventory to net realisable value.
Other estimates include post-employment, post-retirement and other employee benefit liabilities and deferred taxation.
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including
expectations of future events that are believed to be reasonable under the circumstances.
As a global company, the group is exposed to numerous legal risks. The outcome of currently pending and future
proceedings cannot be predicted with certainty. Thus, an adverse decision in a lawsuit could result in additional costs that
are not covered, either wholly or partly, under insurance policies and that could significantly influence the business and
results of operations.
The judgements that management has applied in the application of accounting policies, and the estimates and
assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities
within the next financial year, are discussed below.
Carrying value of goodwill and tangible assets
The majority of mining assets are amortised using the units-of-production method where the mine operating plan calls for
production from a well-defined proved and probable Ore Reserve.
For mobile and other equipment, the straight-line method is applied over the estimated useful life of the asset which does
not exceed the estimated mine life based on proved and probable Ore Reserve as the useful lives of these assets are
considered to be limited to the life of the relevant mine.
The calculation of the units-of-production rate of amortisation could be impacted to the extent that actual production in the
future is different from current forecast production based on proved and probable Ore Reserve. This would generally arise
when there are significant changes in any of the factors or assumptions used in estimating Ore Reserve.
These factors could include:
·
changes in proved and probable Ore Reserve;
·
the grade of Ore Reserve may vary significantly from time to time;
·
differences between actual commodity prices and commodity price assumptions;
·
unforeseen operational issues at mine sites; and
·
changes in capital, operating, mining, processing and reclamation costs, discount rates and foreign exchange rates.
Changes in proved and probable Ore Reserve could similarly impact the useful lives of assets amortised on the straight-
line method, where those lives are limited to the life of the mine.
The group has a number of surface mining operations that are in the production phase for which production stripping costs
are incurred. The benefits that accrue to the group as a result of incurring production stripping costs include (a) ore that
can be used to produce inventory and (b) improved access to further quantities of material that will be mined in future
periods.
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ANNUAL FINANCIAL STATEMENTS 2014
50
The production stripping costs relating to improved access to further quantities in future periods are capitalised as a
stripping activity asset, if and only if, all of the following are met:
·
It is probable that the future economic benefit (improved access to the orebody) associated with the stripping activity
will flow to the group;
·
The group can identify the component of the orebody for which access has been improved; and
·
The costs relating to the stripping activity associated with that component or components can be measured reliably.
Components of the various orebodies at the operations of the group are determined based on the geological areas
identified for each of the orebodies and are reflected in the Ore Reserve reporting of the group. In determining whether
any production stripping costs should be capitalised as a stripping activity asset, the group uses three operational
guidance measures; two of which relate to production measures, while the third relates to an average stripping ratio
measure.
Once determined that any portion of the production stripping costs should be capitalised, the group uses the average
stripping ratio of the component or components to which the production stripping costs relate to determine the amount of
the production stripping costs that should be capitalised. Stripping activity assets are amortised on the units-of-production
method based on the Ore Reserve of the component or components of the orebody to which these assets relate.
This accounting treatment is consistent with that for stripping costs incurred during the development phase of a mine,
before production commences, except that stripping costs incurred during the development phase of a mine, before
production commences, are amortised on the units-of-production method based on the Ore Reserve of the life of the mine
as a whole.
Deferred stripping costs are included in ‘Mine development costs’, within tangible assets. These costs form part of the total
investment in the relevant cash-generating unit, which is reviewed for impairment if events or a change in circumstances
indicate that the carrying value may not be recoverable. Amortisation of stripping activity assets is included in operating
costs.
An individual operating mine is not a typical going-concern business because of the finite life of its reserves. The allocation
of goodwill to an individual mine will result in an eventual goodwill impairment due to the wasting nature of the mine
reporting unit. In accordance with the provisions of IAS 36 “Impairment of Assets”, the group performs its annual
impairment review of assigned goodwill during the fourth quarter of each year.
The group reviews and tests the carrying value of tangible assets when events or changes in circumstances suggest that
the carrying amount may not be recoverable. Assets are grouped at the lowest level for which identifiable cash flows are
largely independent of cash flows of other assets. If there are indications that impairment may have occurred, estimates
are prepared of expected future cash flows for each group of assets. Expected future cash flows used to determine the
value in use of goodwill and tangible assets are inherently uncertain and could materially change over time and impact the
recoverable amounts. The cash flows and value in use are significantly affected by a number of factors including published
reserves, resources, exploration potential and production estimates, together with economic factors such as spot and
future gold prices, discount rates, foreign currency exchange rates, estimates of costs to produce reserves and future
capital expenditure. Refer note 15 for estimates and assumptions used to calculate recoverable amounts. In addition the
group considers the reversal of previously recognised impairments at each reporting date. At the reporting date the group
assesses whether any of the indicators which gave rise to previously recognised impairments have changed such that the
impairment loss no longer exists or may have decreased. The impairment loss is then assessed on the original factors for
reversal and if indicated, such reversal is recognised.
The recoverable amount is estimated based on the positive indicators. If an impairment loss has decreased, the carrying
amount is recorded at the recoverable amount as limited in terms of IAS 36.
The carrying amount of goodwill in the consolidated financial statements at 31 December 2014 was $142m (2013: $154m;
2012:
$195m). The carrying amount of tangible assets at 31 December 2014 was $4,863m (2013: $4,815m;
2012: $7,776m). The impairment and derecognition of goodwill and tangible assets recognised in the consolidated
financial statements for the year ended 31 December 2014 was nil (2013: $15m; 2012: nil) and $4m (2013: $2,978m;
2012: $356m) respectively.
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ANNUAL FINANCIAL STATEMENTS 2014
51
Production start date
The group assesses the stage of each mine construction project to determine when a mine moves into the production
stage. The criteria used to assess the start date are determined by the unique nature of each mine construction project
and include factors such as the complexity of a plant and its location. The group considers various relevant criteria to
assess when the mine is substantially complete and ready for its intended use and moves into the production stage. Some
of the criteria would include but are not limited to the following:
·
the level of capital expenditure compared to the construction cost estimates;
·
completion of a reasonable period of testing of the mine plant and equipment;
·
ability to produce gold in saleable form (within specifications and the de minimis rule); and
·
ability to sustain ongoing production of gold.
When a mine construction project moves into the production stage, the capitalisation of certain mine construction costs
ceases and costs are either regarded as inventory or expensed, except for capitalisable costs related to mining asset
additions or improvements, underground mine development, deferred stripping activities, or Ore Reserve development.
Income taxes
The group is subject to income taxes in numerous jurisdictions. Significant judgement is required in determining the
worldwide provision for income taxes due to the complexity of legislation. There are many transactions and calculations for
which the ultimate tax determination is uncertain during the ordinary course of business. The group recognises liabilities
for anticipated tax audit issues based on estimates of whether additional taxes will be due. Where the final tax outcome of
these matters is different from the amounts that were initially recorded, such differences will impact the income tax and
deferred tax provisions in the period in which such determination is made.
The group recognises the net future tax benefit related to deferred income tax assets to the extent that it is probable that
the deductible temporary differences will reverse in the foreseeable future. Assessing the recoverability of deferred income
tax assets requires the group to make significant estimates related to expectations of future taxable income. Estimates of
future taxable income are based on forecast cash flows from operations and the application of existing tax laws in each
jurisdiction. To the extent that future cash flows and taxable income differ significantly from estimates, the ability of the
group to realise the net deferred tax assets recorded at the reporting date could be impacted.
Additionally, future changes in tax laws in the jurisdictions in which the group operates could limit the ability of the group to
obtain tax deductions in future periods.

Carrying values of the group at 31 December 2014:
·
deferred tax asset: $127m (2013: $177m; 2012: $97m);
·
deferred tax liability: $567m (2013: $579m; 2012: $1,084m);
·
taxation liability: $66m (2013: $81m; 2012: $120m); and
·
taxation asset: $25m (2013: $51m; 2012: $54m).
Unrecognised value of deferred tax assets: $563m (2013: $414m; 2012: $89m).
Provision for environmental rehabilitation obligations
The group’s mining and exploration activities are subject to various laws and regulations governing the protection of the
environment. The group recognises management’s best estimate for decommissioning and restoration obligations in the
period in which they are incurred. Actual costs incurred in future periods could differ materially from the estimates.
Additionally, future changes to environmental laws and regulations, life of mine estimates, inflation rates, foreign currency
exchange rates and discount rates could affect the carrying amount of this provision.
The carrying amount of the rehabilitation obligations for the group at 31 December 2014 was $851m (2013: $728m;
2012: $841m).
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ANNUAL FINANCIAL STATEMENTS 2014
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Stockpiles, metals in process and ore on leach pad
Costs that are incurred in or benefit the production process are accumulated as stockpiles, metals in process and ore on
leach pads. Net realisable value tests are performed at least annually and represent the estimated future sales price of the
product, based on prevailing and long-term metals prices, less estimated costs to complete production and bring the
product to sale.
Stockpiles and underground metals in process are measured by estimating the number of tonnes added and removed
from the stockpile and from underground, the number of contained gold ounces based on assay data, and the estimated
recovery percentage based on the expected processing method. Stockpile and underground ore tonnages are verified by
periodic surveys.
Estimates of the recoverable gold on the leach pads are calculated from the quantities of ore placed on the pads based on
measured tonnes added to the leach pads, the grade of ore placed on the leach pads based on assay data and a recovery
percentage based on metallurgical testing and ore type.
Although the quantities of recoverable metal are reconciled by comparing the grades of ore to the quantities of gold
actually recovered (metallurgical balancing), the nature of the process inherently limits the ability to precisely monitor
recoverability levels. As a result, the metallurgical balancing process is constantly monitored and engineering estimates
are refined based on actual results over time.
Variations between actual and estimated quantities resulting from changes in assumptions and estimates that do not result
in write-downs to net realisable value are accounted for on a prospective basis.
The carrying amount of inventories (excluding finished goods and mine operating supplies) for the group at
31 December 2014 was $1,106m (2013: $1,125m; 2012: $1,309m).
Recoverable tax, rebates, levies and duties
In a number of countries, particularly in Continental Africa, AngloGold Ashanti Limited is due refunds of indirect tax which
remain outstanding for periods longer than those provided for in the respective statutes.
In addition, AngloGold Ashanti Limited has unresolved tax disputes in a number of countries, particularly in Continental
Africa and in Brazil. If the outstanding input taxes are not received and the tax disputes are not resolved in a manner
favourable to AngloGold Ashanti Limited, it could have an adverse effect upon the carrying value of these assets.
The carrying value of recoverable tax, rebates, levies and duties for the group at 31 December 2014 was $169m
(2013: $229m; 2012: $243m).
Pension plans and post-retirement medical obligations
The determination of AngloGold Ashanti Limited’s obligation and expense for pension and provident funds, as well as
post-retirement health care liabilities, depends on the selection of certain assumptions used by actuaries to calculate
amounts. These assumptions include, among others, the discount rate, the expected long-term rate of return of plan
assets, health care inflation costs, rates of increase in compensation costs and the number of employees who reach
retirement age before the mine reaches the end of its life. While AngloGold Ashanti Limited believes that these
assumptions are appropriate, significant changes in the assumptions may materially affect pension and other post-
retirement obligations as well as future expenses, which may result in an impact on earnings in the periods that the
changes in these assumptions occur.
The carrying value of the defined benefit plans (including the net asset position disclosed under non-current assets) at
31 December 2014 was $122m (2013: $111m; 2012: $221m).
Ore Reserve estimates
An Ore Reserve estimate is an estimate of the amount of product that can be economically and legally extracted from the
group’s properties. In order to calculate the Ore Reserve, estimates and assumptions are required about a range of
geological, technical and economic factors, including quantities, grades, production techniques, recovery rates, production
costs, transport costs, commodity demand, commodity prices and exchange rates.
Estimating the quantity and/or grade of the Ore Reserve requires the size, shape and depth of orebodies to be determined
by analysing geological data such as the logging and assaying of drill samples. This process may require complex and
difficult geological judgements and calculations to interpret the data.
The group is required to determine and report its Ore Reserve in accordance with the SAMREC code.
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ANNUAL FINANCIAL STATEMENTS 2014
53
Because the economic assumptions used to estimate changes in the Ore Reserve from period to period, and because
additional geological data is generated during the course of operations, estimates of the Ore Reserve may change from
period to period. Changes in the reported Ore Reserve may affect the group’s financial results and financial position in a
number of ways, including the following:
·
asset carrying values may be affected due to changes in estimated future cash flows;
·
depreciation, depletion and amortisation charged in the income statement may change where such charges are
determined by the units-of-production method, or where the useful economic lives of assets change;
·
overburden removal costs, including production stripping activities, recorded on the statement of financial position or
charged in the income statement may change due to changes in stripping ratios or the units-of-production method of
depreciation;
·
decommissioning site restoration and environmental provisions may change where changes in the estimated Ore
Reserve affect expectations about the timing or cost of these activities; and
·
the carrying value of deferred tax assets may change due to changes in estimates of the likely recovery of the tax
benefits.
Development expenditure
Development activities commence after project sanctioning by the appropriate level of management. Judgement is applied
by management in determining when a project has reached a stage at which economically recoverable reserves exist
such that development may be sanctioned. In exercising this judgement, management is required to make certain
estimates and assumptions similar to those described above for capitalised exploration and evaluation expenditure. Any
such estimates and assumptions may change as new information becomes available. If, after having started the
development activity, a judgement is made that a development asset is impaired, the appropriate amount will be written off
to the income statement.
Share-based payments
The group issues equity-settled share-based payments to certain employees and third parties outside the group. Equity-
settled share-based payments are measured at fair value (excluding the effect of non-market based vesting conditions) at
the date of grant. The fair value determined at the grant date of the equity-settled share-based payments is expensed as
services are rendered over the vesting period, based on the group’s estimate of the shares that will eventually vest and
adjusted for the effect of non-market-based vesting conditions.
Fair value is measured using the Black-Scholes option-pricing model. The expected life used in the model has been
adjusted, based on management’s best estimate, for the effects of non-transferability, exercise restrictions and
behavioural considerations.
The income statement charge for the year was $39m (2013: $30m; 2012: $66m).
Contingencies
By their nature, contingencies will only be resolved when one or more future events occur or fail to occur. The assessment
of such contingencies inherently involves the exercise of significant judgement and estimates of the outcome of future
events. Such contingencies include, but are not limited to environmental obligations, litigation, regulatory proceedings, tax
matters and losses resulting from other events and developments.
Firstly, when a loss is considered probable and reasonably estimable, a liability is recorded in the amount of the best
estimate for the ultimate loss. The likelihood of a loss with respect to a contingency can be difficult to predict and
determining a meaningful estimate of the loss or a range of loss may not always be practicable based on the information
available at the time and the potential effect of future events and decisions by third parties that will determine the ultimate
resolution of the contingency. It is not uncommon for such matters to be resolved over many years, during which time
relevant developments and new information is continuously evaluated to determine both the likelihood of any potential loss
and whether it is possible to reasonably estimate a range of possible losses. When a loss is probable but a reasonable
estimate cannot be made, disclosure is provided.
In determining the threshold for disclosure on a qualitative and quantitative basis, management considers the potential for
a disruptive effect on the normal functioning of the group and/or whether the contingency could impact investment
decisions. Such qualitative matters considered are reputational risks, regulatory compliance issues and reasonable
investor considerations. For quantitative purposes an amount of $20m, has been considered.
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ANNUAL FINANCIAL STATEMENTS 2014
54
Litigation and other judicial proceedings as a rule raise difficult and complex legal issues and are subject to uncertainties
and complexities including, but not limited to, the facts and circumstances of each particular case, issues regarding the
jurisdiction in which each suit is brought and differences in applicable law. Upon resolution of any pending legal matter, the
group may be forced to incur charges in excess of the presently established provisions and related insurance coverage. It
is possible that the financial position, results of operations or cash flows of the group could be materially affected by the
unfavourable outcome of litigation.
1.3   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Equity-accounted investments
Joint ventures
A joint venture is an entity in which the group holds a long-term interest and which the group and one or more other
ventures jointly control under a contractual arrangement, that provides for strategic, financial and operating policy
decisions relating to the activities requiring unanimous consent of the parties sharing control. The group’s interests in joint
arrangements classified as joint ventures are accounted for using the equity method.
Profits and losses realised in connection with transactions between the group and joint ventures are eliminated in
proportion to share ownership. Such profits and losses are deducted from the group’s equity and related statement of
financial position amount and released in the group accounts when the assets are effectively realised outside the group.
Dividends received from joint ventures are included in operating activities in the cash flow statement.
Joint ventures are accounted for at cost and are adjusted for impairments where appropriate in the company financial
statements.
Associates
The equity method of accounting is used for an investment over which the group exercises significant influence and
normally owns between 20% and 50% of the voting equity. Associates are equity-accounted from the effective date of
acquisition to the effective date of disposal. If necessary, impairment losses on loans and equity are reported under share
of profit and loss from investments accounted for using the equity method.
Profits and losses realised in connection with transactions between the group and associated companies are eliminated in
proportion to share ownership. Such profits and losses are deducted from the group’s equity and related statement of
financial position amount and released in the group accounts when the assets are effectively realised outside the group.
Dividends received from associates are included in investing activities in the cash flow statement.
As the group only has significant influence, it is unable to obtain reliable information at reporting period on a timely basis.
The results of associates are equity-accounted from their most recent audited annual financial statements or unaudited
interim financial statements, all within three months of the year end of the group. Adjustments are made to the associates’
financial results for material transactions and events in the intervening period.
Associates are accounted for at cost and are adjusted for impairments where appropriate in the company financial
statements.
Joint ventures and associates
Any losses of equity-accounted investments are brought to account in the consolidated financial statements until the
investment in such investments is written down to zero. Thereafter, losses are accounted for only insofar as the group is
committed to providing financial support to such investees.
The carrying value of equity-accounted investments represents the cost of each investment, including goodwill, balance
outstanding on loans advanced if the loan forms part of the net investment in the investee, any impairment losses
recognised, the share of post-acquisition retained earnings and losses, and any other movements in reserves. The
carrying value of equity-accounted investments is reviewed when indicators arise and if any impairment in value has
occurred; it is recognised in the period in which the impairment arose.
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ANNUAL FINANCIAL STATEMENTS 2014
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Business combinations
Business combinations are accounted for using the acquisition method. The cost of an acquisition is measured as the
aggregate of the consideration transferred measured at acquisition date fair value and the amount of any non-controlling
interest in the acquiree. Acquisition-related costs are expensed as incurred and included in administrative expenses.
Goodwill is initially measured at cost, being the excess of the aggregate of the consideration transferred and the amount
recognised for non-controlling interest over the net identifiable assets acquired and liabilities assumed. If the fair value of
the net assets acquired is in excess of the aggregate consideration transferred, the gain is recognised in profit or loss.
Unincorporated joint ventures – joint operations
A joint operation is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the
use of assets and obligations for the liabilities of the arrangement. The group accounts for activities under joint operations
by recognising in relation to the joint operation, the assets it controls and the liabilities it incurs, the expenses it incurs and
the revenue from the sale or use of its share of the joint operations output.
Foreign currency translation
Functional currency
Items included in the financial statements of each of the group’s entities are measured using the currency of the primary
economic environment in which the entity operates (the ‘functional currency’).
Transactions and balances
Foreign currency transactions are translated into the functional currency using the approximate exchange rates prevailing
at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of foreign currency
transactions and from the translation at the reporting period exchange rate of monetary assets and liabilities denominated
in foreign currencies are recognised in the income statement, except for hedging derivative balances that are within the
scope of IAS 39 “Financial Instruments: Recognition and Measurement”. Translation differences on these balances are
reported as part of their fair value gain or loss.
Translation differences on non-monetary items, such as equities classified as available-for-sale financial assets, are
included in other comprehensive income within equity.
Group companies
The results and financial position of all group entities (none of which has the currency of a hyperinflationary economy) that
have a functional currency different from the presentation currency are translated into the presentation currency as
follows:
·
share capital and premium are translated at historical rates of exchange at the reporting date;
·
retained earnings are converted at historical average exchange rates;
·
assets and liabilities for each statement of financial position presented are translated at the closing rate at the date of
that statement of financial position;
·
income and expenses for each income statement presented are translated at monthly average exchange rates (unless
this average is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates,
in which case income and expenses are translated at the rates prevailing at the date of the transaction);
·
all resulting exchange differences are recognised in other comprehensive income and presented as a separate
component of equity (foreign currency translation); and
·
other reserves, other than those translated above, are converted at the official closing rate at each reporting date.
These resulting exchange differences are recognised in retained earnings.
Exchange differences arising from the translation of the net investment in foreign operations, and of borrowings and other
currency instruments designated as hedges of such investments, are taken to other comprehensive income on
consolidation. For the company, the exchange differences on such monetary items are reported in the company income
statement.
When a foreign operation is sold, such exchange differences are recognised in the income statement as part of the gain or
loss on sale.
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ANNUAL FINANCIAL STATEMENTS
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Goodwill and fair value adjustments arising from the acquisition of a foreign operation are treated as assets and liabilities
of the foreign operation and translated at the closing rate.
Segment reporting
An operating segment is a business activity whose results are regularly reviewed by the chief operating decision maker in
order to make decisions about resources to be allocated to it and to assess its performance and for which discrete
financial information is available. The chief operating decision maker has been determined to be the Executive Committee.
Tangible assets
Tangible assets are recorded at cost less accumulated amortisation and impairments/reversals. Cost includes pre-
production expenditure incurred during the development of a mine and the present value of related future
decommissioning 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. Such borrowing costs are capitalised over the period during which the
asset is being acquired or constructed and borrowings have been incurred. Capitalisation ceases when construction is
interrupted for an extended period or when the asset is substantially complete. Other borrowing costs are expensed as
incurred.
If there is an indication that the recoverable amount of any of the tangible assets is less than the carrying value, the
recoverable amount is estimated and an allowance is made for the impairment in value.
Subsequent costs are included in the asset’s carrying amount only when it is probable that future economic benefits
associated with the asset will flow to the group, and the cost of the addition can be measured reliably. All other repairs and
maintenance are charged to the income statement during the financial period in which they are incurred.
To the extent a legal or constructive obligation to a third party exists, the acquisition cost includes estimated costs of
dismantling and removing the asset and restoring the site. A change in estimated expenditures for dismantling, removal
and restoration is added to and/or deducted from the carrying value of the related asset. To the extent that the change
would result in a negative carrying amount, this effect is recognised as income. The change in depreciation charge is
recognised prospectively.
For assets amortised on the units-of-production method, amortisation is calculated to allocate the cost of each asset to its
residual value over its estimated useful life.
For those assets not amortised on the units-of-production method, amortisation is calculated over their estimated useful
life as follows:
·
buildings up to life of mine;
·
plant and machinery up to life of mine;
·
equipment and motor vehicles up to five years;
·
computer equipment up to three years; and
·
leased assets over the shorter of the period of the lease and the useful life.
Major renovations are depreciated over the remaining useful life of the related asset or to the date of the next major
renovation, whichever is sooner.
Assets are amortised to residual values. Residual values and useful lives are reviewed, and adjusted if appropriate, at the
beginning of each financial year.
Gains and losses on disposals are determined by comparing net sale proceeds with the carrying amount. These are
included in the income statement.
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ANNUAL FINANCIAL STATEMENTS 2014
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Mine development costs
Capitalised mine development costs include expenditure incurred to develop new orebodies, to define further
mineralisation in existing orebodies and, to expand the capacity of a mine. Mine development costs include acquired
proved and probable Ore Reserve at cost at the acquisition date. These costs are amortised from the date on which
commercial production begins.
Depreciation, depletion and amortisation of mine development costs are computed by the units-of-production method
based on estimated proved and probable Ore Reserve. The proved and probable Ore Reserve reflects estimated
quantities of reserves which can be recovered economically in the future from known mineral deposits.
Capitalised mine development costs also include stripping activity assets relating to production stripping activities incurred
in the production phase of open-pit operations of the group. Once determined that any portion of the production stripping
costs should be capitalised, the group uses the average stripping ratio and the average mine costs per tonne of the
component to which the production stripping costs relate to determine the amount of the production stripping costs that
should be capitalised. Stripping activity assets are amortised on a units-of-production method based on the Ore Reserve
of the component of the orebody
to
which these assets relate.
The average stripping ratio is calculated as the number of tonnes of waste material expected to be removed during the life
of the component per tonne of ore mined from the component or components. The average mine cost per tonne of the
component is calculated as the total expected costs to be incurred to mine the relevant component of the orebody, divided
by the number of tonnes expected to be mined from the component. The average mine stripping ratio and the average
mine cost per tonne of the component to which the stripping activity asset relates are recalculated annually in the light of
additional knowledge and
changes in estimates.
Mine infrastructure
Mine plant facilities, including decommissioning assets, are amortised using the lesser of their useful life or units-of-
production method based on estimated proved and probable Ore Reserve. Other tangible assets comprising vehicles and
computer equipment are depreciated by the straight-line method over their estimated useful lives.
Land and assets under construction
Land and assets under construction are not depreciated and are measured at historical cost less impairments.
Mineral rights and dumps
Mineral rights are amortised using the units-of-production method based on the estimated proved and probable Ore
Reserve. Dumps are amortised over the period of treatment.
Exploration and evaluation assets
All exploration costs are expensed until it is concluded that a future economic benefit will more likely than not be realised.
In evaluating if expenditures meet this criterion to be capitalised, several different sources of information are used
depending on the level of exploration. While the criterion for concluding that expenditure should be capitalised is always
probable, the information used to make that determination depends on the level of exploration.
·
Costs on greenfields sites, being those where the group does not have any mineral deposits which are already being
mined or developed, are expensed as incurred until the group is able to demonstrate that future economic benefits are
probable, which generally will be the establishment of proved and probable Ore Reserve at this location.
·
Costs on brownfields sites, being those adjacent to mineral deposits which are already being mined or developed, are
expensed as incurred until the group is able to demonstrate that future economic benefits are probable, which
generally will be the establishment of increased proved and probable Ore Reserve after which the expenditure is
capitalised as a mine development cost.
·
Costs relating to extensions of mineral deposits, which are already being mined or developed, including expenditure
on the definition of mineralisation of such mineral deposits, are capitalised as a mine development cost.
Costs relating to property acquisitions are capitalised within development costs.
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ANNUAL FINANCIAL STATEMENTS 2014
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Intangible assets
Acquisition and goodwill arising thereon
Where an investment in a subsidiary, joint venture or an associate is made, any excess of the consideration transferred
over the fair value of the attributable Mineral Resource including value beyond proved and probable, exploration properties
and net assets is recognised as goodwill. Goodwill in respect of subsidiaries is disclosed as goodwill. Goodwill relating to
equity-accounted joint ventures and associates is included within the carrying value of the investment which is tested for
impairment when indicators exist.
Goodwill relating to subsidiaries is tested annually for impairment and carried at cost less accumulated impairment losses.
Gains and losses on the disposal of an entity include the carrying amount of goodwill relating to the entity sold. Goodwill is
allocated to cash-generating units for the purpose of impairment testing.
Royalty rate concession
The royalty rate concession with the government of Ghana was capitalised at fair value at agreement date. Fair value
represents a present value of future royalty rate concessions over 15 years. The royalty rate concession has been
assessed to have a finite life and is amortised on a straight-line method over a period of 15 years, the period over which
the concession runs. The related amortisation expense is charged through the income statement. This intangible asset is
tested for impairment when there is an indicator of impairment.
Software
Software purchased, including direct costs associated with customisation and installation of the software, is capitalised.
Internally-developed software is capitalised when it meets the criteria for capitalisation. Other software development
expenditure is charged to the income statement when incurred. Software is amortised on a straight-line basis over its
useful life which is determined to be the lesser of the license period of the software; the manufacturer’s announced
upgrade that management intends to implement; or 3 years. Useful lives are reviewed, and adjusted if appropriate,
annually.
Impairment of assets
Intangible assets that have an indefinite useful life and separately recognised goodwill are not subject to amortisation and
are tested annually for impairment and whenever events or changes in circumstance indicate that the carrying amount
may not be recoverable. Assets that are subject to amortisation are tested for impairment whenever events or changes in
circumstance indicate that the carrying amount may not be recoverable.
An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount.
The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use. For the purposes of
assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash-
generating units).
Leased assets
Assets subject to finance leases are capitalised at the lower of their fair value or the present value of minimum lease
payments measured at inception of the lease 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 rate implicit in the lease, which is included in finance costs, 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 the assets
concerned will be used.
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ANNUAL FINANCIAL STATEMENTS 2014
59
Non-current assets held for sale
Non-current assets and disposal groups are classified as held for sale if their carrying amount will be recovered principally
through a sale transaction rather than through continuing use. This condition is regarded as having been met only when
the sale is highly probable and the asset (or disposal group) is available for immediate sale in its present condition.
Management must be committed to the sale, which should be expected to qualify for recognition as a completed sale
within one year from the date of classification.
Non-current assets (and disposal groups) classified as held for sale are measured at the lower of their previous carrying
amount and fair value less costs to sell.
Exploration and research expenditure
Pre-license costs are recognised in profit or loss as incurred. Exploration and research expenditure is expensed in the
year in which it is incurred. These expenses include: geological and geographical costs, labour, Mineral Resource and
exploratory drilling costs.
Inventories
Inventories are valued at the lower of cost and net realisable value after appropriate allowances for redundant and
obsolete items. Cost is determined on the following bases:
·
metals in process are valued at the average total production cost at the relevant stage of production;
·
gold doré/bullion is valued on an average total production cost method;
·
ore stockpiles are valued at the average moving cost of mining and stockpiling the ore. Stockpiles are classified as a
non-current asset where the stockpile exceeds current processing capacity;
·
by-products, which include uranium oxide and sulphuric acid, are valued using an average total production cost
method. By-products are classified as a non-current asset where the by-products on hand exceed current processing
capacity;
·
mine operating supplies are valued at average cost; and
·
heap leach pad materials are measured on an average total production cost basis. The cost of materials on the leach
pad from which metals are expected to be recovered in a period longer than 12 months is classified as a non-current
asset.
A portion of the related depreciation, depletion and amortisation charge is included in the cost of inventory.
Provisions
Provisions are recognised when the group has a present obligation, whether legal or constructive, because 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. Where some or all of the expenditure required to
settle a provision is expected to be reimbursed by another party, the reimbursement is recognised only when the
reimbursement is virtually certain. The amount to be reimbursed is recognised as a separate asset. Where the group has
a joint and several liability with one or more other parties, no provision is recognised to the extent that those other parties
are expected to settle part or all of the obligation.
Provisions are measured at the present value of management’s best estimate of the expenditure required to settle the
obligation at the reporting date. The discount rate used to determine the present value reflects current market
assessments of the time value of money and the risks specific to the liability.
Litigation and administrative proceedings are evaluated on a case-by-case basis considering the information available,
including that of legal counsel, to assess potential outcomes. Where it is considered probable that an obligation will result
in an outflow of resources, a provision is recorded for the present value of the expected cash outflows if these are
reasonably measurable. These provisions cover the estimated payments to plaintiffs, court fees and the cost of potential
settlements.
AngloGold Ashanti Limited does not recognise a contingent liability on its statement of financial position except in a
business combination where the contingent liability represents a possible obligation.
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ANNUAL FINANCIAL STATEMENTS 2014
60
Employee benefits
Pension obligations
Group companies operate various pension schemes. The schemes are funded through payments to insurance companies
or trustee-administered funds, determined by periodic actuarial calculations. The group has both defined benefit and
defined contribution plans. A defined benefit plan is a pension plan that defines an amount of pension benefit that an
employee will receive on retirement, usually dependent on one or more factors such as age, years of service and
compensation.
A defined contribution plan is a pension scheme under which the group pays fixed contributions into a separate entity. The
group has no legal or constructive obligation to pay further contributions if the fund does not hold sufficient assets to pay
all employees the benefits relating to employee service in current and prior periods. The contributions are recognised as
employee benefit expenses when they are due. Prepaid contributions are recognised as an asset to the extent that a cash
refund or a reduction in future contribution payments is available.
The asset/liability recognised in the statement of financial position in respect of defined benefit pension plans is the
present value of the defined benefit obligation at the reporting date less the fair value of plan assets, together with
adjustments for past service costs. The defined benefit obligation is calculated annually by independent actuaries using
the projected unit credit method. The value of any defined benefit asset recognised is restricted to the sum of any past
service cost and the present value of any economic benefits available in the form of refunds from the plan or reductions in
future contributions to the plan.
Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are immediately
recorded in other comprehensive income.
Other post-employment benefit obligations
Some group companies provide post-retirement health care benefits to their retirees. The entitlement to these benefits is
usually conditional on the employee remaining in service up to retirement age and completion of a minimum service
period. The expected costs of these benefits are accrued over the period of employment using an accounting methodology
on the same basis as that used for defined benefit pension plans. Actuarial gains and losses arising from experience
adjustments and changes in actuarial assumptions are recorded in other comprehensive income immediately. These
obligations are valued annually by independent qualified actuaries.
Termination benefits
Termination benefits are payable when employment is terminated before the normal retirement date, or when an
employee accepts voluntary redundancy in exchange for these benefits. An entity shall recognise a liability and expense
for termination benefits at the earlier of the following dates: (a) when the entity can no longer withdraw the offer of those
benefits; and (b) when the entity recognises costs for a restructuring that is within the scope of IAS 37 “Provisions,
Contingent Liabilities and Contingent Assets” and involves the payment of termination benefits. The group recognises
termination benefits when it is demonstrably committed to either terminating the employment of current employees
according to a detailed formal plan without possibility of withdrawal; or providing termination benefits as a result of an offer
made to encourage voluntary redundancy based on the number of employees expected to accept the offer. Benefits falling
due more than 12 months after reporting date are discounted to present value.
Profit-sharing and bonus plans
The group recognises a liability and an expense for bonuses and profit-sharing, based on a formula that takes into
consideration the profit attributable to the group’s shareholders after certain adjustments. The group recognises a
provision where contractually obliged or where there is a past practice that has created a constructive obligation.
Share-based payments
The group’s management awards certain employee bonuses in the form of equity-settled share-based payments on a
discretionary basis.
The fair value of the equity instruments granted is calculated at measurement date, for transactions with employees this is
at grant date. For transactions with employees, fair value is based on market prices of the equity instruments granted, if
available, taking into account the terms and conditions upon which those equity instruments were granted. If market prices
of the equity instruments granted are not available, the fair value of the equity instruments granted is estimated using an
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ANNUAL FINANCIAL STATEMENTS 2014
61
appropriate valuation model. Vesting conditions, other than market conditions, are not taken into account when estimating
the fair value of shares or share options at measurement date.
Over the vesting period, the fair value at measurement date is recognised as an employee benefit expense with a
corresponding increase in other capital reserves based on the group’s estimate of the number of instruments that will
eventually vest. The income statement charge or credit for a period represents the movement in cumulative expense
recognised as at the beginning and end of that period. Vesting assumptions for non-market conditions are reviewed at
each reporting date to ensure they reflect current expectations.
When options are exercised or share awards vest, the proceeds received, net of any directly attributable transaction costs,
are credited to share capital (nominal value) and share premium.
Where the terms of an equity settled award are modified, as a minimum, an expense is recognised as if the terms had not
been modified. In addition, an expense is recognised for any modification which increases the total fair value of the share-
based payment arrangement, or is otherwise beneficial to the employee, as measured at the date of the modification.
In the company financial statements, share-based payment arrangements with employees of other group entities are
recognised by charging that entity its share of the expense and a corresponding increase in other capital reserves. When
options are exercised or share awards vest, the proceeds received, net of any directly attributable transaction costs, are
credited to share capital (nominal value) and share premium.
Environmental expenditure
The group has long-term remediation obligations comprising decommissioning and restoration liabilities relating to its past
operations which are based on the group’s environmental management plans, in compliance with current environmental
and regulatory requirements. Provisions for non-recurring remediation costs are made when there is a present obligation,
it is probable that expenditure on remediation work will be required and the cost can be estimated within a reasonable
range of possible outcomes. The costs are based on currently available facts, technology expected to be available at the
time of the clean-up, laws and regulations presently or virtually certain to be enacted and prior experience in remediation
of contaminated sites.
Contributions for the South African operations are made to Environmental Rehabilitation Trust Funds, created in
accordance with local statutory requirements where applicable, to fund the estimated cost of rehabilitation during and at
the end of the life of a mine. The amounts contributed to the trust funds are accounted for as non-current assets in the
company. Interest earned on monies paid to rehabilitation trust funds is accrued on a time proportion basis and is
recorded as interest income. For group purposes, the trusts are consolidated.
Decommissioning costs
The provision for decommissioning represents the cost that will arise from rectifying damage caused before production
commences. Accordingly, a provision and a decommissioning asset is recognised and included within mine infrastructure.
Decommissioning costs are provided at the present value of the expenditures expected to settle the obligation, using
estimated cash flows based on current prices. The unwinding of the decommissioning obligation is included in the income
statement. Estimated future costs of decommissioning obligations are reviewed regularly and adjusted as appropriate for
new circumstances or changes in law or technology. Changes in estimates are capitalised or reversed against the relevant
asset. Estimates are discounted at a pre-tax rate that reflects current market assessments of the time value of money.
Gains or losses from the expected disposal of assets are not taken into account when determining the provision.
Restoration costs
The provision for restoration represents the cost of restoring site damage after the start of production. Changes in the
provision are recorded in the income statement as a cost of production.
Restoration costs are estimated at the present value of the expenditures expected to settle the obligation, using estimated
cash flows based on current prices and adjusted for risks specific to the liability. The estimates are discounted at a pre-tax
rate that reflects current market assessments of the time value of money.
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ANNUAL FINANCIAL STATEMENTS 2014
62
Revenue recognition
Revenue is recognised at the fair value of the consideration received or receivable to the extent that it is probable that
economic benefits will flow to the group and revenue and costs 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;
·
dividends and royalties are recognised when the right to receive payment is established;
·
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; and
·
where a by-product is not regarded as significant, revenue is credited against cost of sales, when the significant risks
and rewards of ownership of the products are transferred to the buyer.
Taxation
Deferred taxation is provided on all qualifying temporary differences at the reporting 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 deductible 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 reporting date.
Deferred tax assets and liabilities are measured at future anticipated tax rates, which have been enacted or substantively
enacted at the reporting date.
Current and deferred tax is recognised as income or expense and included in profit or loss for the period, except to the
extent that the tax arises from a transaction or event which is recognised, in the same or a different period in other
comprehensive income or directly in equity, or a business combination that is an acquisition.
Current tax is measured on taxable income at the applicable statutory rate enacted or substantively enacted at the
reporting date. Interest and penalties, if any, are recognised in the income statement as part of taxation expense.
Special items
Items of income and expense that are material and require separate disclosure, in accordance with IAS 1.97, are
classified as special items on the face of the income statement. Special items that relate to the underlying performance of
the business are classified as operating special items and include impairment charges and reversals. Special items that do
not relate to underlying business performance are classified as non-operating special items and are presented below
operating profit (loss) on the income statement.
Dividend distribution
Dividend distribution to the group’s shareholders is recognised as a liability in the group’s financial statements in the
period in which the dividends are declared by the board of directors of AngloGold Ashanti Limited.
Financial instruments
Financial instruments are initially measured at fair value when the group becomes a party to their contractual
arrangements. Transaction costs are included in the initial measurement of financial instruments, except financial
instruments classified as at fair value through profit or loss. The subsequent measurement of financial instruments is dealt
with below.
A financial asset is derecognised when the right to receive cash flows from the asset has expired or the group has
transferred its rights to receive cash and either (a) has transferred substantially all the risks and rewards of the asset, or
(b) has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of
the asset.
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ANNUAL FINANCIAL STATEMENTS 2014
63
A financial liability is derecognised when the obligation under the liability is discharged, cancelled or expires.
On derecognition of a financial asset, the difference between the proceeds received or receivable and the carrying amount
of the asset is included in profit or loss.
On derecognition of a financial liability, the difference between the carrying amount of the liability extinguished or
transferred to another party and the amount paid is included in profit or loss.
Regular way purchases and sales of all financial assets and liabilities are accounted for at settlement date.
Derivatives and hedge accounting
The group enters into derivatives to ensure a degree of price certainty and to guarantee a minimum revenue on a portion
of future planned gold production. In addition, the group enters into derivatives to manage interest rate and currency risk.
The method of recognising fair value gains and losses depends on whether derivatives are classified as held for trading or
are designated as hedging instruments, and if the latter, the nature of the risks being hedged. The group designates
derivatives as either hedges of the variability in highly probable future cash flows attributable to a recognised asset or
liability, or a forecast transaction (cash flow hedges); or hedges of the fair value of recognised asset or liability or a firm
commitment (fair value hedges).
For cash flow hedges, the effective portions of fair value gains or losses are recognised in other comprehensive income
until the hedging instrument expires or is sold, or when a hedge no longer meets the criteria for hedge accounting or when
the hedge transactions affect earnings. Any cumulative gain or loss existing in equity at that time remains in equity until
the forecast transaction is recognised in the income statement. If a hedge of a forecast transaction subsequently results in
the recognition of a non-financial asset or liability, the associated cumulative gains and losses that were recognised
directly in other comprehensive income are reclassified into earnings in the same periods during which the asset acquired
or the liability assumed affects earnings for the period.
When a forecast transaction is no longer expected to occur, the cumulative gain or loss that was reported in other
comprehensive income is immediately transferred to the income statement. The ineffective portion of fair value gains and
losses is reported in earnings in the period to which they relate. For fair value hedges, the gain or loss from changes in fair
value of the hedged item is reported in earnings, together with the offsetting gains and losses from changes in fair value of
the hedging instrument.
All other derivatives are classified as held for trading and are subsequently measured at their estimated fair value, with the
changes in estimated fair value in the statement of financial position as either a derivative asset or derivative liability,
including translation differences, at each reporting date being reported in earnings in the period to which it relates. Fair
value gains and losses on these derivatives are included in gross profit in the income statement.
Commodity-based (normal purchase or normal sale) derivative contracts that meet the requirements of IAS 39 are
recognised in earnings when they are settled by physical delivery.
The estimated fair values of derivatives are determined at discrete points in time based on the relevant market information.
These estimates are calculated with reference to the market rates using industry standard valuation techniques.
Other investments
Listed equity investments and unlisted equity investments, other than investments in subsidiaries, joint ventures, and
associates, are classified as available-for-sale financial assets and subsequently measured at fair value. Listed
investments’ fair values are calculated by reference to the quoted selling price at the close of business on the reporting
date. Fair values for unlisted equity investments are estimated using methods reflecting the economic circumstances of
the investee. Equity investments for which fair value cannot be measured reliably are recognised at cost less impairment.
Changes in fair value are recognised in other comprehensive income in the period in which they arise. These amounts are
removed from equity and reported in income when the asset is derecognised or when there is objective evidence that the
asset is impaired based on a significant or prolonged decrease in the fair value of the equity instrument below its cost.
Investments which management has the intention and ability to hold to maturity are classified as held-to-maturity financial
assets and are subsequently measured at amortised cost using the effective interest rate method. If there is evidence that
held-to-maturity financial assets are impaired, the carrying amount of the assets is reduced and the loss recognised in the
income statement.
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ANNUAL FINANCIAL STATEMENTS 2014
64
Other non-current assets
·
Loans and receivables are subsequently measured at amortised cost using the effective interest rate method. If there
is evidence that loans and receivables are impaired, the carrying amount of the assets is reduced and the loss
recognised in the income statement.
·
Post-retirement assets are measured according to the employee benefits policy.
Trade and other receivables
Trade receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective
interest method, less accumulated impairment. Impairment of trade and other receivables is established when there is
objective evidence as a result of a loss event that the group will not be able to collect all amounts due according to the
original terms of the receivables. Objective evidence includes failure by the counterparty to perform in terms of contractual
arrangements and agreed terms. The amount of the impairment is the difference between the asset’s carrying amount and
the present value of estimated future cash flows, discounted at the original effective interest rate. Impairments relate to
specific accounts whereby the carrying amount is directly reduced. The impairment is recognised in the income statement.
Cash and cash equivalents
Cash and cash equivalents are defined as cash on hand, demand deposits and short-term, highly liquid investments which
are readily convertible to known amounts of cash and subject to insignificant risk of changes in value. They are measured
at amortised cost which is deemed to be fair value as they have a short-term maturity.
Cash restricted for use
Cash which is subject to legal or contractual restrictions on use is classified separately as cash restricted for use.
Financial liabilities
Financial liabilities, other than derivatives and liabilities classified as at fair value through profit or loss, are subsequently
measured at amortised cost, using the effective interest rate method.
Financial liabilities permitted to be designated on initial recognition as being at fair value through profit or loss are
recognised at fair value, with transaction costs being recognised in profit or loss, and are subsequently measured at fair
value. Gains and losses on financial liabilities that are designated as at fair value through profit or loss are recognised in
profit or loss as they arise. Fair value of a financial liability that is quoted in an active market is the current offer price times
the number of units of the instrument held or issued.
Financial guarantee contracts are accounted for as financial instruments and measured initially at estimated fair value.
They are subsequently measured at the higher of the amount determined in accordance with IAS 37 “Provisions,
Contingent Liabilities and Contingent Assets”, and the amount initially recognised less (when appropriate) cumulative
amortisation recognised in accordance with IAS 18 “Revenue”.
Convertible bonds
Convertible bonds, except equity components, are accounted for as liabilities. Option components are treated as
derivative liabilities and carried at fair value, with changes in fair value recorded in the income statement as a separate
instrument and reported separately except where the host contract is carried at fair value. The bond component is carried
at amortised cost using the effective interest rate. Where the fair value option is elected, the bonds are carried at fair value
with changes in fair value recorded in the income statement.
Treasury shares
The group’s own equity instruments, which are reacquired or held by subsidiary companies (treasury shares), are
deducted from equity. No gain or loss is recognised in profit or loss on the purchase, sale, issue or cancellation of the
group’s own equity instruments.








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ANNUAL FINANCIAL STATEMENTS 2014
65
Fair value measurements
The group measures financial instruments at fair value at each reporting date where relevant. Fair value is the price that
would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the
measurement date. The fair value of an asset or a liability is measured using the assumptions that market participants
would use when pricing the asset or liability, assuming that market participants act in their economic best interest.
For the purpose of fair value disclosures, the group has determined classes of assets and liabilities on the basis of the
nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy. The group uses valuation
techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value,
maximising the use of relevant observable inputs and minimising the use of unobservable inputs.
Accounting for BEE transactions
Where equity instruments are issued to a BEE party at less than fair value, these are accounted for as share-based
payments.
Any difference between the fair value of the equity instrument issued and the consideration received is accounted for as
an expense in the income statement.
A restriction on the BEE party to transfer the equity instrument subsequent to its vesting is not treated as a vesting
condition, but is factored into the fair value determination of the instrument.
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ANNUAL FINANCIAL STATEMENTS 2014
66
GROUP – NOTES TO THE FINANCIAL STATEMENTS
For the year ended 31 December

   SEGMENTAL INFORMATION
AngloGold Ashanti Limited's operating segments are being reported based on the financial information provided to the
Chief Executive Officer and the Executive Committee, collectively identified as the Chief Operating Decision Maker
(CODM). Individual members of the Executive Committee are responsible for geographic regions of the business.
Group analysis by origin is as follows:
Figures in million
Net operating assets
Total assets (2)(3)
US Dollars
2014
2013
2012
2014
2013
2012
South Africa(1)
1,754
1,941
2,619
2,124
2,325
3,082
Continental Africa(4)
1,424
1,339
3,184
3,239
3,391
4,846
Australasia(1)
672
776
684
906
1,108
1,045
Americas(1)
1,838
1,627
2,315
2,409
2,203
2,878
Other, including non-gold producing subsidiaries
37
39
60
456
647
888
5,725
5,722
8,862
9,134
9,674
12,739
Non-current assets considered material, by country are:
South
Africa
1,908
*2,098
*2,786
Foreign
entities
5,263
*4,927
*7,041
DRC
1,369
1,241
Ghana
*1,388
Tanzania
1,058
Australia
743
878
Brazil
730
*726
*1,059
United
States
805
Other
1,616
2,082
3,536
* The comparatives have been amended to exclude post-employment benefit assets and cash restricted for use.
Figures in million
Amortisation
Capital expenditure
US Dollars
2014
2013
2012
2014
2013
2012
South Africa
258
253
302
264
451
583
Continental Africa(2)
281
254
285
454
839
925
Australasia
150
98
36
91
285
369
Americas(2)
192
201
213
394
410
409
Other, including non-gold producing subsidiaries
8
8
9
6
8
36
889
814
845
1,209
1,993
2,322
Equity-accounted investments included above
(103)
(15)
(10)
(191)
(411)
(303)
786
799
835
1,018
1,582
2,019
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ANNUAL FINANCIAL STATEMENTS 2014
67
2     SEGMENTAL INFORMATION continued
Gold production (attributable)
(000oz)
2014
2013
2012
South Africa
1,223
1,302
1,212
Continental Africa
1,597
1,460
1,521
Australasia
620
342
258
Americas
996
1,001
953
4,436
4,105
3,944
Figures in million
Gold income
US Dollars
2014
2013
2012
Geographical analysis of gold income by origin is as follows:
South Africa
1,527
1,810
2,013
Continental Africa(2)
2,105
2,111
2,609
Australasia
785
441
426
Americas
1,270
1,425
1,656
5,687
5,787
6,704
Equity-accounted investments included above
(469)
(290)
(351)
(note 3)
5,218
5,497
6,353
Foreign countries included in the above and considered material are:
Brazil
684
758
851
Ghana
642
772
Tanzania
605
640
906
Geographical analysis of gold income by destination is as follows:
South Africa
3,065
2,944
3,600
North America
704
1,064
1,197
Australia
775
435
426
Asia
414
399
387
Europe
429
355
404
United Kingdom
300
590
690
5,687
5,787
6,704
Equity-accounted investments included above
(469)
(290)
(351)
(note 3)
5,218
5,497
6,353
Figures in million
Gross profit (loss)(5)
US Dollars
2014
2013
2012
South Africa
216
510
651
Continental Africa(2)
469
475
959
Australasia
125
(9)
78
Americas(2)
309
516
736
Corporate and other
-
-
41
1,119
1,492
2,465
Equity-accounted investments included above
(76)
(47)
(111)
1,043
1,445
2,354
(1)
Total assets includes allocated goodwill of $10m (2013: $10m; 2012: $13m) for South Africa, $124m (2013: $136m; 2012: $159m) for
Australasia and $8m (2013: $8m; 2012: $23m) for Americas (note 16).
(2)
Includes equity-accounted investments.
(3)
In 2014, pre-tax impairments, derecognition of goodwill, tangible assets and intangible assets of $10m were accounted for in Continental
Africa, whilst in 2013, $3,029m were accounted for in South Africa ($311m), Continental Africa ($1,776m) and the Americas ($942m).
(4)
As at 31 December 2013, total assets included assets held for sale in respect of Navachab Mine of $153m (note 25).
(5)
The group's segment profit measure is gross profit, which excludes the results of associates and joint ventures. For a reconciliation of
gross profit to profit before taxation, refer to the group income statement.
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GROUP – NOTES TO THE FINANCIAL STATEMENTS
For the year ended 31 December
ANNUAL FINANCIAL STATEMENTS 2014
68
Figures in million
2014
2013
2012
US Dollars
     REVENUE
Revenue consists of the following principal categories:
Gold income (note 2)
5,218
5,497
6,353
By-products (note 4)
132
149
206
- silver income
69
80
95
- uranium income
47
54
90
- sulphuric acid income
15
13
19
- other
1
2
2
Dividends received
-
5
7
Royalties received (note 7)
4
18
23
Interest received (note 33)
24
39
43
- loans and receivables(1)
9
23
13
- available-for-sale and held-to-maturity investments
6
8
5
- cash and cash equivalents
9
8
25
5,378
5,708
6,632
(1)
Interest received from loans and receivables comprises:
2
1
1
- related parties
-
5
4
- unwinding of long-term receivables
7
17
8
- other loans
9
23
13
     COST OF SALES
Cash operating costs(1)
3,240
3,247
3,129
Insurance reimbursement
-
-
(30)
By-products revenue (note 3)
(132)
(149)
(206)
3,108
3,098
2,893
Royalties
131
129
164
Other cash costs
33
43
35
Share scheme and related costs
20
27
43
Total cash costs
3,292
3,297
3,135
Retrenchment costs
24
69
10
Rehabilitation and other non-cash costs
94
18
67
Production costs
3,410
3,384
3,212
Amortisation of tangible assets (notes 15 and 33)
750
775
830
Amortisation of intangible assets (notes 16 and 33)
36
24
5
Total production costs
4,196
4,183
4,047
Inventory change
(6)
(37)
(83)
4,190
4,146
3,964
(1)
Cash operating costs comprise:
- salaries and wages
1,105
1,231
1,186
- stores and other consumables
702
747
746
- fuel, power and water
659
641
670
- contractors
531
632
560
- other
243
(4)
(33)
3,240
3,247
3,129
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GROUP – NOTES TO THE FINANCIAL STATEMENTS
For the year ended 31 December
ANNUAL FINANCIAL STATEMENTS 2014
69
Figures in million
2014
2013
2012
US Dollars
5
CORPORATE ADMINISTRATION, MARKETING
AND OTHER EXPENSES
Corporate administration expenses
80
183
236
Marketing expenses
1
6
10
Share scheme and related costs
11
12
45
92
201
291
6
OTHER OPERATING EXPENSES
Pension and medical defined benefit provisions
6
14
37
Claims filed by former employees in respect of loss of employment,
work-related accident injuries and diseases, governmental fiscal
claims and care and maintenance of old tailings operations
15
5
10
Other expenses
7
-
-
28
19
47
     SPECIAL ITEMS
Impairment and derecognition of goodwill, tangible and intangible
assets (notes 13, 15 and 16)
10
3,029
346
Impairment of other investments (notes 13)
2
30
16
Impairment of other receivables
1
-
1
Write-down of stockpiles and heap leach to net realisable value and
other stockpile adjustments (note 20)
2
216
-
Write-down of consumable stores inventories
5
-
-
Net inventory write-off at Geita due to fire
-
1
-
Net (profit) loss on disposal and derecognition of land, mineral rights,
tangible assets and exploration properties (notes 13)
(25)
(2)
15
Profit on partial disposal of Rand Refinery (Pty) Limited (note 13)
-
-
(14)
Royalties received (note 3)(1)
(4)
(18)
(23)
Indirect tax expenses and legal claims(2)
19
43
40
Legal fees and other costs related to contract terminations and
settlement costs
(3)
30
19
21
Retrenchment and related costs(4)
210
24
-
Costs on early settlement of convertible bonds and transaction costs
on the $1.25bn bonds and standby facility
-
61
-
Write off of a loan (Sokimo)
-
7
-
Loss on sale of Navachab mine (note 25)
2
-
-
Write off of deferred loan fees
8
-
-
260
3,410
402
(1)
Includes the Tau Lekoa royalty of $4m (2013: $5m; 2012: $5m) and Boddington royalty of nil (2013: $13m; 2012: $18m).
(2)
Indirect tax expenses and legal claims include the following:
- net impairment for non-recovery of VAT and fuel duties in Argentina, Brazil, Colombia, Guinea, Senegal and Tanzania of $19m
(2013: $43m; 2012: $29m); and
- the Westchester/Africore Limited legal claim of $11m in 2012.
(3)
Legal fees and other costs related to contract terminations and settlement cost include the following:
- Mongbwalu termination costs of $29m (2013: $15m; 2012: nil);
- the Mining & Building Contractors Limited (MBC) termination costs of nil (2013: $1m; 2012: $17m);
- contract settlement costs of $4m in 2012; and
- other movements of $1m (2013: $3m; 2012: nil).
(4)
The Obuasi mine was transitioned to limited operations during the year, as a result, all the employees were retrenched at a cost of
$210m.

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GROUP – NOTES TO THE FINANCIAL STATEMENTS
For the year ended 31 December
ANNUAL FINANCIAL STATEMENTS 2014
70
Figures in million
2014
2013
2012
US Dollars
8
FINANCE COSTS AND UNWINDING OF
OBLIGATIONS
Finance costs
Finance costs on rated bonds and corporate notes
211
148
74
Finance costs on convertible bonds
-
18
27
Finance costs on bank loans and overdrafts
30
43
18
Finance costs on mandatory convertible bonds
-
26
37
Amortisation of fees
5
10
15
Finance lease charges
5
5
6
Other finance costs
1
2
2
252
252
179
Amounts capitalised (note 15)
(1)
(5)
(12)
Total finance costs
251
247
167
Unwinding of obligations, accretion of convertible bonds and
other discounts
Unwinding of decommissioning obligation (note 28)
12
13
11
Unwinding of restoration obligation (note 28)
13
14
17
Unwinding of other provisions (note 28)
1
2
1
Accretion of convertible bonds discount
1
20
30
Discounting of long-term trade and other receivables
-
-
5
Total unwinding of obligations, accretion of convertible bonds and
other discounts
27
49
64
Total finance costs, unwinding of obligations, accretion of convertible
bonds and other discounts (note 33)
278
296
231
9
SHARE OF ASSOCIATES AND JOINT
VENTURES’ LOSS
Revenue
519
334
383
Operating costs, special items and other expenses
(523)
(315)
(326)
Net interest received
6
4
2
Profit before taxation
2
23
59
Taxation
(22)
(21)
(30)
(Loss) profit after taxation
(20)
2
29
Impairment of investments in associates (note 18)
(22)
(14)
(20)
Impairment of investments in joint ventures (notes 13 and 18)
(6)
(181)
(39)
Loss on disposal of loan to joint venture (notes 13 and 18)
-
-
(2)
Reversal of impairment in associate (notes 13 and 18)
3
-
2
Reversal of impairment in joint venture (notes 13 and 18)
20
31
-
(note 33)
(25)
(162)
(30)
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GROUP – NOTES TO THE FINANCIAL STATEMENTS
For the year ended 31 December
ANNUAL FINANCIAL STATEMENTS 2014
71
Figures in million
2014
2013
2012
US Dollars
10    EMPLOYEE BENEFITS
Employee benefits including Executive Directors' and Prescribed
Officers' salaries and other benefits
1,175
1,321
1,298
Health care and medical scheme costs
- current medical expenses
70
72
77
- defined benefit post-retirement medical expenses
10
13
36
Pension and provident plan costs
- defined contribution
60
64
69
- defined benefit pension plans
-
11
9
Retrenchment costs
234
82
10
Share-based payment expense (note 11)
39
30
66
Included in cost of sales, other operating expenses, special items
and corporate administration, marketing and other expenses
1,588
1,593
1,565
Actuarial defined benefit plan expense analysis
Defined benefit post-retirement medical
- current service cost
-
1
1
- interest cost
10
12
13
- recognised past service cost
-
-
22
10
13
36
Defined benefit pension plans
- current service cost
4
6
7
- interest cost
20
24
27
- interest income
(24)
(21)
(25)
- recognised past service cost
-
2
-
-
11
9
Actual return on plan assets
- defined benefit pension and medical plans
26
64
45
Refer to note 35 for details of Directors’ and Prescribed Officers' emoluments.

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GROUP – NOTES TO THE FINANCIAL STATEMENTS
For the year ended 31 December
ANNUAL FINANCIAL STATEMENTS
2014
72
Figures in million
2014
2013
2012
US Dollars
11     SHARE-BASED PAYMENTS
Share incentive schemes
No new share incentive schemes were approved by the
shareholders of AngloGold Ashanti Limited during the current
financial year. New awards were made under the amended BSP and
LTIP plans. The total cost relating to employee share incentive
schemes was $39m (2013: $30m; 2012: $66m) and is made up as
follows:
Employee Share Ownership Plan (ESOP) - Free shares
-
3
4
Employee Share Ownership Plan (ESOP) - E ordinary shares to
employees
-
2
4
Bonus Share Plan (BSP)
27
24
37
Long Term Incentive Plan (LTIP)
10
(1)
21
Share Retention Bonus Scheme
2
2
-
Total share-based payment expense
39
30
66
Equity-settled share incentive schemes

Employee Share Ownership Plan (ESOP)
On 12 December 2006, AngloGold Ashanti Limited announced the finalisation of the Bokamoso Employee Share
Ownership Plan (Bokamoso ESOP) with the National Union of Mineworkers (NUM), Solidarity and United Association of
South Africa (UASA). The Bokamoso ESOP creates an opportunity for AngloGold Ashanti Limited and the unions to
ensure a closer alignment of the interest between South African-based employees and the company, and the seeking of
shared growth solutions to build partnerships in areas of shared interest. Participation is restricted to those employees
not eligible for participation in any other South African share incentive plan.
The company also undertook an empowerment transaction with a black economic empowerment investment vehicle,
Izingwe, in 2006.
In order to facilitate this transaction the company established a trust to acquire and administer the ESOP shares.
AngloGold Ashanti Limited allotted and issued free ordinary shares to the trust and also created, allotted and issued
E ordinary shares to the trust for the benefit of employees. The company also created, allotted and issued E ordinary
shares to Izingwe. The key terms of the E ordinary shares are:
·
AngloGold Ashanti Limited will have the right to cancel the E ordinary shares, or a portion of them, in accordance
with the ESOP and Izingwe cancellation formulae, respectively;
·
the E ordinary shares will not be listed;
·
the E ordinary shares which are not cancelled will be converted into ordinary shares; and
·
the E ordinary shares will each be entitled to receive a dividend equal to one-half of the dividend per ordinary share
declared by the company from time to time and a further one-half is included in the strike price calculation.
On 14 April 2011, AngloGold Ashanti Limited, NUM, Solidarity, UASA, Izingwe and the Bokamoso ESOP Board of
Trustees announced the modification of the empowerment transactions concluded between the company and the
unions, and the company and Izingwe respectively in 2006.
This modification was motivated by the fact that share price performance since the onset of the 2008 global financial
crisis led to a situation where the first two tranches of E ordinary shares vested and lapsed at no additional value to
Bokamoso ESOP beneficiaries and Izingwe.
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GROUP – NOTES TO THE FINANCIAL STATEMENTS
For the year ended 31 December
ANNUAL FINANCIAL STATEMENTS 2014
73
11     SHARE-BASED PAYMENTS continued
Equity-settled share incentive schemes continued
Employee Share Ownership Plan (ESOP) continued
In order to remedy this situation in a manner that would ensure an element of value accruing to participants, though at a
reasonable incremental cost to AngloGold Ashanti Limited shareholders, the scheme was modified as follows:
·
all lapsed E ordinary shares that vested without value were reinstated;
·
the strike (base) price was fixed at R320.00 per share for the Bokamoso ESOP and R330.00 for Izingwe;
·
the notional interest charge that formed part of the original cancellation formula fell away;
·
as previously, 50% of any dividends declared was used to reduce the strike price;
·
as previously, the remaining 50% is paid directly to participants under the empowerment transaction; and
·
the life span of the scheme was extended by an additional one year, the last vesting being in 2014, instead of 2013.
A minimum pay out on vesting of the E ordinary shares has been set at R40.00 each and a maximum pay out of
R70.00 each per E ordinary share for Izingwe and R90.00 each for members of the Bokamoso ESOP
(i.e. employees), including the impact of the 50% of dividend flow. While the floor price provides certainty to all
beneficiaries of the empowerment transactions, the creation of a ceiling serves to limit the cost to AngloGold Ashanti
Limited and its shareholders.
The total incremental fair value of awards granted was R29.14 per share and was included in earnings up to the vesting
date in 2014. The company recorded a charge of $12m in 2011 to earnings as a result of the modification.
The award of free ordinary shares to employees
The fair value of each free share awarded on 1 November each year was as follows:
Award date
2006
2007
2008
2011
Calculated fair value
R320.00
R305.99
R188.48
R306.99
The fair value was equal to the market value at the date-of-grant. Dividends declared and paid to the trust were accrued
and paid to ESOP members, pro rata to the number of shares allocated to them. An equal number of shares vested from
2009 and each subsequent year up to the expiry date of 1 November 2014.
Accordingly, for the awards issued, the following information is available:
Number of
shares
Weighted
average
exercise
price (ZAR)
Number of
shares
Weighted
average
exercise
price (ZAR)
Number of
shares
Weighted
average
exercise
price (ZAR)
2014
2013
2012
Awards outstanding at beginning of
year
5,171
-
154,757
-
326,906
-
Awards reallocated during the year
486
-
726
-
10,311
-
Awards lapsed during the year
(486)
-
(726)
-
(10,311)
-
Awards exercised during the year
(5,171)
-
(149,586)
-
(172,149)
-
Awards outstanding at end of year
-
-
5,171
-
154,757
-
During 2014, the rights to a total of 486 (2013: 726; 2012: 10,311) shares were surrendered by the participants. A
cumulative total of nil (2013: 9,720; 2012: 10,968) shares were allotted to deceased, retired or retrenched employees.
The income statement charge for the year was nil (2013: $3m; 2012: $4m).
The award of E ordinary shares to employees
Before the modification of the ESOP scheme the average fair value per share of the E ordinary shares awarded to
employees on 1 November each year was as follows:
Award date
2006
2007
2008
Calculated fair value
R105.00
R79.00
R13.40
After the modification of the ESOP scheme during April 2011, the average fair value per share of the E ordinary shares
was R49.57.
Dividends declared in respect of the E ordinary shares were firstly allocated to cover administration expenses of the
trust, where after they accrued and were paid to ESOP members, pro rata to the number of shares allocated to them. At
each anniversary over a six-year period which commenced on the third anniversary of the original 2006 award, the
company cancelled the relevant number of E ordinary shares as stipulated by a cancellation formula.
Any E ordinary shares that remained in that tranche were converted to ordinary shares for the benefit of employees.
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GROUP – NOTES TO THE FINANCIAL STATEMENTS
For the year ended 31 December
ANNUAL FINANCIAL STATEMENTS 2014
74
11    SHARE-BASED PAYMENTS continued
Equity-settled share incentive schemes continued
Accordingly, for the E ordinary shares issued, the following information is available:
Number of
shares
Weighted
average
exercise
price (ZAR)
Number of
shares
Weighted
average
exercise
price (ZAR)
Number of
shares
Weighted
average
exercise
price (ZAR)
2014
2013
2012
Awards outstanding at beginning of
year
362,006
312.56
917,752
313.31
1,532,962
315.31
Awards granted during the year
-
312.56
-
-
-
-
Awards reallocated during the year
3,444
312.56
2,664
310.30
32,064
312.97
Awards lapsed during the year
(3,444)
312.56
(2,664)
310.30
(32,064)
312.97
Awards converted during the year
(362,006)
312.56
(555,746)
312.57
(615,210)
313.39
Awards outstanding at end of year
-
-
362,006
312.56
917,752
313.31
The weighted average exercise price was calculated as the initial grant price of R288.00 plus an interest factor less
dividend apportionment up to April 2011. After that date, the exercise price was calculated at the modified price of
R320.00 less dividend apportionment. The income statement charge for the year was less than $1m (2013: $2m;
2012: $4m).
During 2013, the rights to a total of 3,444 (2013: 2,664; 2012: 32,064) shares were surrendered by participants. A total
of 362,006 (2013: 555,746; 2012: 615,210) E ordinary shares were converted into 154,299 (2013: 145,018;
2012: 84,446) ordinary shares during the year. A total of nil (2013: nil; 2012: nil) shares were cancelled as the result of
the exercise price exceeding the share price on conversion date.
The award of E ordinary shares to Izingwe
Before the modification of the scheme the average fair value of the E ordinary shares granted to Izingwe on
13 December 2006 was R90.00 per share. After the modification the average fair value of the E ordinary shares granted
to Izingwe was R44.61 per share. Dividends declared in respect of the E ordinary shares were accrued and paid to
Izingwe, pro rata to the number of shares allocated to them. At each anniversary over a six-year period which
commenced on the third anniversary of the award, the company cancelled the relevant number of E ordinary shares as
stipulated by a cancellation formula. Any E ordinary shares that remained in that tranche were converted to ordinary
shares for the benefit of Izingwe.
Accordingly, for the awards issued, the following information is available:
Number of
shares
Weighted
average
exercise
price (ZAR)
Number of
shares
Weighted
average
exercise
price (ZAR)
Number of
shares
Weighted
average
exercise
price (ZAR)
2014
2013
2012
E ordinary shares outstanding at
beginning of year
350,000
322.56
700,000
323.31
1,050,000
325.31
E Ordinary shares converted during
the year
(350,000)
322.56
(350,000)
322.56
(350,000)
323.31
E ordinary shares outstanding at end
of year
-
-
350,000
322.56
700,000
323.31
The weighted average exercise price was calculated as the initial grant price of R288.00 plus an interest factor less
dividend apportionment up to April 2011. After that date, the exercise price was calculated at the modified price of
R330.00 less dividend apportionment. $19m was expensed at inception of the scheme in 2006.
A total of 350,000 (2013: 350,000; 2012: 350,000) E ordinary shares were converted into 149,733 (2013: 91,683;
2012: 48,532) ordinary shares during the year. A total of nil (2013: nil; 2012: nil) shares were cancelled as the result of
the exercise price exceeding the share price on conversion date.
The fair value of each share granted for the ESOP and Izingwe schemes was estimated on the date of grant using the
Black-Scholes option-pricing model. The Black-Scholes option-pricing model requires the input of subjective
assumptions, including the expected term of the option award and share price volatility. Expected volatility is based on
the historical volatility of AngloGold Ashanti Limited's shares. These estimates involve inherent uncertainties and the
application of management judgement. In addition, the company is required to estimate the expected forfeiture rate and
only recognise expenses for those options expected to vest. As a result, if other assumptions had been used, the
recorded share-based compensation expense could have been different from that reported.
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GROUP – NOTES TO THE FINANCIAL STATEMENTS
For the year ended 31 December
ANNUAL FINANCIAL STATEMENTS 2014
75
11     SHARE-BASED PAYMENTS continued
Equity-settled share incentive schemes continued
The award of E ordinary shares to Izingwe continued
The Black-Scholes option-pricing model used the following assumptions, at grant date:
Award date
2006
2007
2008
2011
Risk-free interest rate
7.00%
7.00%
7.00%
6.63%
Dividend
yield
2.30%
2.06%
1.39%
0.99%
Volatility factor of market share price
36.00%
33.00%
35.00%
33.50%
Bonus Share Plan (BSP)
The BSP is intended to provide effective incentives to eligible employees. An eligible employee is one who devotes
substantially the whole of his working time to the business of AngloGold Ashanti Limited, any subsidiary of AngloGold
Ashanti Limited or a company under the joint control of AngloGold Ashanti Limited, unless the board of directors (the
board) excludes such a company. An award in terms of the BSP may be made at any date at the discretion of the board,
the only vesting condition being three years' service for awards granted prior to 2008. For BSP awards granted between
2008 and 2012, 40% will vest after one year and the remaining 60% will vest after two years. An additional 20% of the
original award will be granted to employees if the full award remains unexercised after three years. For BSP awards
granted from 2013 onwards, 50% will vest after one year and the remaining 50% will vest after two years. The additional
20% retention award for holding the shares for 36 months falls away, and is replaced by the matching shares being a
120% as opposed to a 100%. For executives, the same principal will apply but the matching will be at 150%.
The board is required to determine a BSP award value and this will be converted to a share amount based on the
closing price of AngloGold Ashanti Limited's shares on the JSE on the last business day prior to the date of grant.
AngloGold Ashanti Limited's Remuneration Committee has at its discretion the right to pay dividends, or dividend
equivalents, to the participants of the BSP. Having no history of any discretionary dividend payments, the fair value
includes dividends and was used to determine the income statement expense.
Accordingly, for the awards issued, the following information is available:
Award date (unvested awards and awards vested
during the year)
2011
2012
2013
2014
Calculated fair value
R340.00
R 328.59
R 226.46
R 198.05
Vesting date 50% (2010, 2011, 2012 at 40%)
21 Feb 2012
21 Feb 2013
13 Mar 2014
24 Feb 2015
Vesting date 50% (2010, 2011, 2012 at 60%)
21 Feb 2013
21 Feb 2014
13 Mar 2015
24 Feb 2016
Vesting date (conditional 20%)
21 Feb 2014
21 Feb 2015
-
-
Expiry date
20 Feb 2021
20 Feb 2022
12 Mar 2023
23 Feb 2024
Number of
shares
Weighted
average
exercise
price (ZAR)
Number of
shares
Weighted
average
exercise
price (ZAR)
Number of
shares
Weighted
average
exercise
price (ZAR)
2014
2013
2012
Awards outstanding at beginning of
year
2,598,887
-
2,156,456
-
1,825,378
-
Awards granted during the year
1,983,469
-
1,300,968
-
993,146
-
Awards lapsed during the year
(408,491)
-
(212,802)
-
(104,026)
-
Awards exercised during the year
(868,350)
-
(645,735)
-
(558,042)
-
Awards outstanding at end of year
3,305,515
-
2,598,887
-
2,156,456
-
Awards exercisable at end of year
1,328,104
-
1,217,468
-
880,774
-
During 2014, the rights to a total of 408,491 (2013: 212,802; 2012: 104,026) shares were surrendered by the
participants. A cumulative total of 112,719 (2013: 158,408; 2012: 22,835) shares were allotted to deceased, retired or
retrenched employees. The income statement charge for the year was $27m (2013: $24m; 2012: $37m).
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GROUP – NOTES TO THE FINANCIAL STATEMENTS
For the year ended 31 December
ANNUAL FINANCIAL STATEMENTS 2014
76
11    SHARE-BASED PAYMENTS continued
Equity-settled share incentive schemes continued
Long Term Incentive Plan (LTIP)
The LTIP is intended to provide effective incentives for executives to earn shares in the company based on the
achievement of stretched company performance conditions. Participation in the LTIP will be offered to Executive
Directors and selected senior management of participating companies. Participating companies include AngloGold
Ashanti Limited, any subsidiary of AngloGold Ashanti Limited or a company under the joint control of AngloGold Ashanti
Limited, unless the board excludes such a company.
An award in terms of the LTIP may be granted at any date during the year that the board of AngloGold Ashanti Limited
determine and may even occur more than once a year. The board is required to determine an LTIP award value and this
will be converted to a share amount based on the closing price of AngloGold Ashanti Limited's shares on the JSE on the
last business day prior to the date of grant. AngloGold Ashanti Limited's Remuneration Committee has at its discretion
the right to pay dividends, or dividend equivalents, to the participants of the LTIP. Having no history of any discretionary
dividend payments, the fair value includes dividends and was used to determine the income statement expense.
The main performance conditions in terms of the LTIP issued in 2012 are:
·
up to 30% of an award will be determined by the performance of total shareholder returns (TSR) compared with that
of a group of comparative gold-producing companies;
·
up to 30% of an award will be determined by real growth (above US inflation) in adjusted earnings per share over the
performance period;
·
up to 40% of an award will be dependent on the achievement of strategic performance measures which will be set by
the Remuneration Committee; and
·
three-years’ service is required.
The main performance conditions in terms of the LTIP issued in 2013 are:
·
up to 50% of an award will be determined by the performance of total shareholder returns (TSR) compared with that
of a group of comparative gold-producing companies;
·
up to 35% of an award will be dependent on the achievement of strategic performance measures that has been set
by the Remuneration Committee;
·
up to 15% of an award will be dependent on meeting the free cash flow generated from operations (before project
capital) budget; and
·
three-years’ service is required.
The main performance conditions in terms of the LTIP issued in 2014 are:
·
up to 50% of an award will be determined by the performance of total shareholder returns (TSR) compared with that
of a group of comparative gold-producing companies;
·
up to 50% of an award will be dependent on the achievement of strategic performance measures that has been set
by the Remuneration Committee;
·
a safety multiplier of 20% will be applied based on safety performance; and
·
three-years’ service is required.
Accordingly, for the awards made, the following information is available:
Award date (unvested awards and awards vested
during the year)
2011
2012
2013
2014
Calculated fair value
R340.00
R328.59
R 226.46
R 198.05
Vesting date
21 Feb 2014
21 Feb 2015
13 Mar 2016
24 Feb 2017
Expiry date
20 Feb 2021
20 Feb 2022
12 Mar 2023
23 Feb 2024
Number of
shares
Weighted
average
exercise
price (ZAR)
Number of
shares
Weighted
average
exercise
price (ZAR)
Number of
shares
Weighted
average
exercise
price (ZAR)
2014
2013
2012
Awards outstanding at beginning of
year
2,872,630
-
2,330,906
-
1,982,060
-
Awards granted during the year
2,217,675
-
1,815,497
-
983,554
-
Awards lapsed during the year
(916,790)
-
(998,091)
-
(294,216)
-
Awards exercised during the year
(209,153)
-
(275,682)
-
(340,492)
-
Awards outstanding at end of year
3,964,362
-
2,872,630
-
2,330,906
-
Awards exercisable at end of year
355,524
-
357,880
-
250,932
-
The income statement expense for the year was $10m (2013: credit of $1m; 2012: expense of $21m).
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GROUP – NOTES TO THE FINANCIAL STATEMENTS
For the year ended 31 December
ANNUAL FINANCIAL STATEMENTS 2014
77
11     SHARE-BASED PAYMENTS continued
Equity-settled share incentive schemes continued
Share Retention Bonus Scheme
This award is specifically to address the retention of executive management. Executives received an additional ad-hoc
incentive comprising an LTIP award in March 2013 and a deferred cash portion delivered in August 2014. The scheme
is a performance-based share award, equivalent to 60% of the executives’ base pay as at 1 January 2013. Subject to
performance criteria, these shares vested during September 2014. The cash portion was 40% of the executives’ base
pay (80% for the CFO based on the January 2013 total base pay inclusive of off-shore payments where applicable).
The scheme was subject to delivery on key business imperatives and on delivery of adjusted headline earnings above a
threshold of 50% of the approved targeted adjusted headline earnings over the performance period. Failure to meet any
of the performance criteria resulted in the forfeiture of the retention bonus.
Accordingly, for the awards made, the following information is available:
Award date (unvested awards and awards vested during the year)
2013
Calculated fair value
R 226.46
Vesting date
Aug 2014
Expiry date
Aug 2017
Number of
shares
Weighted
average
exercise
price (ZAR)
Number
of shares
Weighted
average
exercise
price (ZAR)
2014
2013
Awards outstanding at beginning of year
159,984
-
-
-
Awards granted during the year
-
-
203,863
-
Awards lapsed during the year
(9,684)
-
(34,923)
-
Awards exercised during the year
-
-
(8,956)
-
Awards outstanding at end of year
150,300
-
159,984
-
Awards exercisable at end of year
150,300
-
-
-
The income statement charge for the year was $2m (2013: $2m; 2012: nil).
Co-Investment Executive Share Plan (CIP)
To assist executives in meeting their Minimum Shareholding Requirements (MSR’s) with effect from February 2013, they
were given the opportunity, on a voluntary basis, to participate in the Co-Investment Plan (CIP), and this has been
adopted on the conditions below:
·
Executives will be allowed to take up to 50% of their after tax cash bonus to participate in a further matching scheme
by purchasing shares in AngloGold Ashanti, and the company will match their initial investment into the scheme at
150%, with vesting over a two-year period in two equal tranches.
Accordingly, for the awards made, the following information is available:
Award date (unvested awards and awards vested during the year)
2014
2013
Calculated weighted average fair value
R193.34
R226.46
Vesting date
2016
2015
Expiry date
2024
2023
Number of
shares
Weighted
average
exercise
price (ZAR)
Number
of shares
Weighted
average
exercise
price (ZAR)
2014
2013
Awards outstanding at beginning of year
20,133
-
-
-
Awards granted during the year
50,083
-
20,810
-
Awards lapsed during the year
(1,287)
-
(677)
-
Awards exercised during the year
(12,226)
-
-
-
Awards outstanding at end of year
56,703
-
20,133
-
Awards exercisable at end of year
-
-
-
-
The income statement charge for the year was less than $1m (2013: less than $1m; 2012: nil).
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GROUP – NOTES TO THE FINANCIAL STATEMENTS
For the year ended 31 December
ANNUAL FINANCIAL STATEMENTS 2014
78
Figures in million
2014
2013
2012
US Dollars
12  TAXATION
South African taxation
Mining tax
21
7
54
Non-mining tax(1)
5
1
18
Prior year under (over) provision
4
(26)
(3)
Deferred taxation
Temporary differences(2)
(20)
(39)
65
Unrealised non-hedge derivatives and other commodity contracts
4
25
(10)
Change in estimated deferred tax rate(3)
(24)
-
(9)
Change in statutory tax rate(4)
-
-
(131)
(10)
(32)
(16)
Foreign taxation
Normal taxation
152
160
354
Prior year over provision
(17)
(8)
(9)
Deferred taxation
Temporary differences(2)
130
(453)
(21)
Change in statutory tax rate
-
-
38
265
(301)
362
255
(333)
346
Tax rate reconciliation
A reconciliation of the effective tax rate in the income statement to the
prevailing estimated corporate tax rate is set out in the following table:
%
%
%
Effective tax rate
118
13
27
Disallowable items
Derivative and other commodity contracts losses and fair value gains
(2)
(3)
6
Share of associates and joint ventures' loss
(3)
2
(1)
Exploration, corporate and other disallowable expenses (5)
(6)
3
(9)
Foreign income tax allowances and rate differentials
(7)
(2)
(6)
Exchange variation and translation adjustments
(14)
-
(1)
Derecognition of deferred tax assets
(13)
13
-
Non-tax effective losses(5)
(64)
4
(2)
Capital allowances
9
(1)
1
Change in estimated deferred tax rate(3)
11
-
1
Change in statutory tax rate(4)
-
-
8
Other
(1)
(1)
4
Estimated corporate tax rate(1)
28
28
28
(1)
The South African statutory tax rates are as follows:
Non-mining statutory tax rate 28% (2013: 28%; 2012: 28%); and
Maximum statutory mining tax rate 34% (2013: 34%; 2012: 34%) - refer mining formula in footnote 4.
(2)
Included in temporary differences in South African taxation is a tax credit on the impairment, derecognition and disposal of tangible
assets of nil (2013: $86m; 2012: $16m). Included in temporary differences of foreign taxation is a net tax credit on the impairment and
disposal of tangible assets of $8m (2013: $499m; 2012: $90m) and write-down of inventories of $9m (2013: $68m; 2012: $90m).
(3)
In South Africa, the mining operations are taxed on a variable rate that increases as profitability increases. The tax rate used to
calculate deferred tax is based on the group's current estimate of future profitability when temporary differences will reverse.
Depending on the profitability of the operations, the tax rate can consequently be significantly different from year to year. The change
in the estimated deferred tax rate at which the temporary differences will reverse amounts to a tax credit of $24m (2013: nil; 2012:
$9m).
(4)
Mining tax on mining income in South Africa is determined according to a formula based on profit and revenue from mining
operations.
(5)
The comparatives have been amended to separately disclose amounts related to exploration, corporate and other disallowable
expenses and non-tax effective losses for improved disclosure.
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GROUP – NOTES TO THE FINANCIAL STATEMENTS
For the year ended 31 December
ANNUAL FINANCIAL STATEMENTS 2014
79
12    TAXATION continued
All mining capital expenditure is deducted to the extent that it does not result in an assessed loss and depreciation is
ignored when calculating the South African mining income. Capital expenditure not deducted from mining income is
carried forward as unredeemed capital to be deducted from future mining income. South Africa operates under two tax
paying operations, Vaal River Operation and West Wits Operation. Under ring-fencing legislation, each operation is
treated separately and deductions can only be utilised against income generated by the relevant tax operation.
The formula for determining the South African mining tax rate is:
Y = 34 - 170/X (2013: Y = 34 - 170/X; 2012: Y = 34 - 170/X)
where Y is the percentage rate of tax payable and X is the ratio of mining profit net of any redeemable capital
expenditure to mining revenue expressed as a percentage.
Figures in million
2014
2013
2012
US Dollars
Analysis of unrecognised tax losses
Tax losses available to be utilised against future profits
-
-
5
- utilisation required within one year
235
171
-
- utilisation required between two and five years
1,635
1,221
263
- utilisation in excess of five years
1,870
1,392
268
Unrecognised value of deferred tax assets: $563m (2013: $414m; 2012: $89m), mainly relating to tax losses incurred at
Cripple Creek & Victor, Obuasi and Colombia.
US Cents
13    (LOSS) EARNINGS PER ORDINARY SHARE
Basic (loss) earnings per ordinary share
The calculation of basic (loss) earnings per ordinary share is based on
(losses) profits attributable to equity shareholders of ($58m) (2013:
($2,230m); 2012:
$897m) and 407,729,050 (2013: 392,625,264;
2012: 386,766,345) shares being the weighted average number of
ordinary shares in issue during the financial year.
(14)
(568)
232
Diluted (loss) earnings per ordinary share
The calculation of diluted (loss) earnings per ordinary share is based
on (losses) profits attributable to equity shareholders of ($58m) (2013:
($2,560m); 2012: $747m) and 407,729,050 (2013: 405,546,908;
2012: 422,131,159) shares being the diluted number of ordinary
shares.
(14)
(631)
177
Number of shares
In calculating the basic and diluted number of ordinary shares
outstanding for the year, the following were taken into consideration:
Ordinary shares
403,339,562
389,184,639
382,757,790
E ordinary shares(1)
585,974
1,460,705
2,392,316
Fully vested options (2)
3,803,514
1,979,920
1,616,239
Weighted average number of shares
407,729,050
392,625,264
386,766,345
Dilutive potential of share options(3)
-
-
1,840,199
Dilutive potential of convertible bonds
-
12,921,644
33,524,615
Diluted number of ordinary shares
407,729,050
405,546,908
422,131,159
Figures in million
US Dollars
In calculating the diluted (loss) earnings attributable to equity
shareholders, the following were taken into consideration:
(Loss) profit attributable to equity shareholders
(58)
(2,230)
897
Interest expense of convertible bonds, where dilutive
-
26
63
Amortisation of issue cost and discount of convertible bonds
-
-
32
Fair value adjustment on convertible bonds included in income
-
(356)
(245)
(Loss) profit attributable to equity shareholders used to calculate
diluted earnings per share
(58)
(2,560)
747
The mandatory convertible bonds issued during 2010 (note 27) are not included in basic earnings per ordinary share as
they contain features that could result in their settlement in cash and therefore do not meet the definition of an equity
instrument. As they converted in 2013, they are partially included in that year.
(1)
As E ordinary shares participate in the profit available to ordinary shareholders, these shares were included in basic earnings per
share.
(2)
Employee compensation awards are included in basic earnings per share from the date that all necessary conditions have been
satisfied and it is virtually certain that shares will be issued as a result of employees exercising their options.
(3)
Share options could potentially dilute earnings per share in the future, but were not included in the calculation of diluted earnings per
share because they are anti-dilutive for 2013 and 2014.
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GROUP – NOTES TO THE FINANCIAL STATEMENTS
For the year ended 31 December
ANNUAL FINANCIAL STATEMENTS 2014
80
Figures in million
2014
2013
2012
US Dollars
13    (LOSS) EARNINGS PER ORDINARY SHARE
continued
Headline (loss) earnings
The (loss) profit attributable to equity shareholders was adjusted by
the following to arrive at headline earnings:
(Loss) profit attributable to equity shareholders
(58)
(2,230)
897
Impairment and derecognition of tangible and intangible assets
(notes 7,15 and 16)
10
3,029
346
Tax on item above
(2)
(915)
(103)
Net amount
8
2,114
243
Net (profit) loss on disposal and derecognition of land, mineral rights,
tangible assets and exploration properties (notes 7)
(25)
(2)
15
Tax on item above
8
-
(4)
Net amount
(17)
(2)
11
Impairment of other investments (notes 7 and 19)
2
30
16
Profit on partial disposal of Rand Refinery (Pty) Limited (note 7)
-
-
(14)
Impairment of investments in associates and joint ventures
(notes 9 and 18)
1
195
59
Reversal of impairment in associates and joint ventures
(notes 9 and 18)
(23)
(31)
(2)
Loss on disposal of loan to joint venture (notes 9 and 18)
-
-
2
Loss on sale of Navachab mine (note 7)
2
-
-
Special items of associates and joint ventures
6
2
(4)
(79)
78
1,208
Headline earnings is calculated in accordance with Circular 2/2013
as issued by the South African Institute of Chartered Accountants
(SAICA).
Headline earnings is a requirement of the JSE Limited and is not a
recognised measure under IFRS. Headline earnings as defined in
Circular 2/2013 issued by SAICA, separates from earnings all
separately identifiable remeasurements. It is not necessarily a
measure of sustainable earnings.
US Cents
Basic headline (loss) earnings per share
The calculation of basic headline (loss) earnings per ordinary share
is based on basic headline (losses) earnings of ($79m) (2013: $78m;
2012: $1,208m) and 407,729,050 (2013: 392,625,264; 2012:
386,766,345) shares being the weighted average number of ordinary
shares in issue during the year.
(19)
20
312
Diluted headline (loss) earnings per share
The calculation of diluted headline (loss) earnings per ordinary share
is based on diluted headline (losses) earnings of ($79m) (2013:
($252m); 2012: $1,058m) and 407,729,050 (2013: 405,546,908;
2012: 422,131,159) shares being the weighted average number of
ordinary shares in issue during the year.
(19)
(62)
251
US Dollars
In calculating diluted headline (loss) earnings, the following were
taken into consideration:
Headline (loss) earnings
(79)
78
1,208
Interest expense of convertible bonds, where dilutive
-
26
63
Amortisation of issue cost and discount of convertible bonds
-
-
32
Fair value adjustment on convertible bonds included in income
-
(356)
(245)
Diluted headline (loss) earnings
(79)
(252)
1,058
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GROUP – NOTES TO THE FINANCIAL STATEMENTS
For the year ended 31 December
ANNUAL FINANCIAL STATEMENTS 2014
81
Figures in million
2014
2013
2012
US Dollars
14    DIVIDENDS
Ordinary shares
No. 112 of 200 SA cents per share was declared on 14 February 2012
and paid on 16 March 2012 (26 US cents per share).
-
-
101
No. 113 of 100 SA cents per share was declared on 8 May 2012 and
paid on 8 June 2012 (12 US cents per share).
-
-
45
No. 114 of 100 SA cents per share was declared on 3 August 2012
and paid on 14 September 2012 (12 US cents per share).
-
-
47
No. 115 of 50 SA cents per share was declared on 6 November 2012
and paid on 14 December 2012 (6 US cents per share).
-
-
22
No. 116 of 50 SA cents per share was declared on 18 February 2013
and paid on 28 March 2013 (5 US cents per share).
-
21
-
No. 117 of 50 SA cents per share was declared on 10 May 2013 and
paid on 14 June 2013 (5 US cents per share).
-