Summarised financial information

Non-GAAP disclosure – summary

SUMMARY

From time to time AngloGold Ashanti Limited may publicly disclose certain “Non-GAAP” financial measures in the course of its financial presentations, earnings releases, earnings conference calls and otherwise.

The group uses certain Non-GAAP performance measures and ratios in managing the business and which may provide users of this financial information with additional meaningful comparisons between current results and results in prior operating periods. The Non- GAAP financial measures are used to adjust for fair value movements on the convertible and mandatory convertible bonds as well as the highly volatile marked-to-market movements on unrealised non-hedge derivatives and other commodity contracts, which can only be measured with certainty on settlement of the contracts. Non-GAAP financial measures should be viewed in addition to, and not as an alternative to, the reported operating results or any other measure of performance prepared in accordance with IFRS. In addition, the presentation of these measures may not be comparable to similarly titled measures that other companies use. The Non-GAAP metrics are as follows:

      2014 2013 2012
1 Headline (loss) earnings adjusted for unrealised non-hedgederivatives, other commodity contracts and fair value adjustment on the convertible and mandatory convertible bonds (adjusted headline earnings)$m(1)599988
  Adjusted headline (loss) earnings per ordinary shareUS cps153255
2 Gross profit adjusted for unrealised non-hedge derivatives and other commodity contracts (adjusted gross profit)$m1,0281,3512,389
3 Price received    
  – Gold sold000oz4,4544,0933,953
  – Revenue price per unit$/oz1,2641,4011,664
4 Total cash cost and production cost    
  – Gold produced000oz4,4324,1053,944
  – Total cash cost per unit$/oz787830829
  – Total production cost per unit$/oz1,0141,0541,054
5 All-in sustaining costs    
  – Gold sold000oz4,4544,0933,953
  – All-in sustaining cost per unit (excluding stockpile write-offs)$/oz1,0261,1741,251
6 Adjusted EBITDA (1)
$m1,6651,6672,529
  (1)Adjusted EBITDA is prepared in terms of the formula set out in the revolving credit agreements    
7Interest covertimes7714
8 Equity   
  Total equity per statement of financial position$m2,8713,1075,494
   Mandatory convertible bonds   588
   Equity 2,8713,1076,082
   Capital expenditure in respect of projects not in production stage   (1,346) (843)
   Adjusted equity$m2,8711,7615,239
9 Net capital employed    
  Shareholders’ equity per statement of financial position$m2,8453,0795,473
  Adjusted to exclude:    
  – Comprehensive income (98)(102)(135)
  – Actuarial losses   40 25 89
   2,7873,0025,427
  Deferred taxation 5675791,084
  Adjusted to exclude:    
  – Deferred tax on derivatives and other comprehensive income 1
  – Deferred tax on actuarial losses   6 13 40
  Adjusted equity 3,3613,5946,551
  Non-controlling interests 262821
  Borrowings – long-term portion 3,4983,6332,724
  Borrowings – short-term portion   223 258 859
  Capital employed 7,1087,51310,155
  Cash and cash equivalents   (468) (648) (892)
  Net capital employed 6,6406,8659,263
  Capital expenditure in respect of projects not in production stage   (1,346) (843)
  Adjusted net capital employed$m6,6405,5198,420
10 Net debt$m3,1333,1052,061
11 Net asset valueUS cps7117701,580
12 Net tangible asset valueUS cps6557041,498
13 Return on equity    
  Adjusted headline (loss) earnings (note 1)$m(1)599988
  Finance costs on the mandatory convertible bonds   26 37
  Adjusted headline (loss) earnings excluding finance costs on    
  mandatory convertible bonds $m (1) 625 1,025
  Adjusted equity (note 8)$m2,8711,7615,239
  Average equity (1)$m2,3163,5005,465
  (1) Equity for 2011 amounted to $5,692m    
  Return on equity % 18 19
14 Return on net capital employed    
  Adjusted headline (loss) earnings (note 1)$m(1)599988
  Finance costs 278296231
  Interest received   (24) (39) (43)
  Adjusted headline earnings excluding net finance costs $m 253 856 1,176
  Net capital employed (note 9)$m6,6405,5198,420
  Average net capital employed (1)$m6,0806,9717,932
  (1) Net capital employed for 2011 amounted to $7,444m    
  Return on net capital employed%41215
15 Market capitalisation    
  Number of listed ordinary shares in issue at year-end (millions) 404403383
  Closing share price as quoted on the New York Stock Exchange   8.70 11.72 31.37
  Market capitalisation$m3,5154,72712,025
16 Average number of employees    
  South Africa 29,51132,40634,186
  Continental Africa 16,07016,62516,621
  Australasia 832925494
 Americas 8,5888,3747,896
  Other, including corporate and non-gold producing subsidiaries   3,056 8,104 6,625
   58,05766,43465,822
Selected notes