ANGLOGOLD ASHANTI TRADING STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2019
AngloGold Ashanti will release results for the year ended 31 December 2019 (“the period”) on the
Johannesburg Stock Exchange News Service on 21 February 2020.
With reference to the Listings Requirements of the JSE Limited, issuers are required to publish
a trading statement as soon as they become reasonably certain that the financial results for the
period to be reported on next, will differ by at least 20% from those of the previous
corresponding reporting period.
Expected headline earnings and basic loss
Shareholders are advised that the Company has reasonable certainty that the headline earnings for the
period are expected to be between $357 million and $401 million, with headline earnings per share
(“HEPS”) of between 86 cents and 96 cents. Headline earnings and HEPS for the comparative period
were $220 million and 53 cents, respectively.
The total basic loss (from continuing and discontinued operations) for the period is expected to be
between $26 million and $0 million, resulting in a total basic loss per share of between 6 cents and 0
cents. Basic earnings and basic earnings per share for the comparative period were $133 million and
32 cents, respectively.
The total basic loss (from continuing and discontinued operations) for the period was negatively
impacted by a non-cash impairment charge of $385 million (post-tax) or 92 cents per share related to
the sale of the South African operations as described below.
South African asset sale and impact of IFRS 5
On 12 February 2020, the Company announced an agreement to sell its remaining South African
producing assets and related liabilities to Harmony Gold Mining Company Limited. Consideration for
the transaction is in cash and deferred payments with expected proceeds of around $300 million,
subject to subsequent performance, and with additional proceeds if the West Wits assets are developed
below current infrastructure.
In terms of International Financial Reporting Standards, IFRS 5 Non-current Assets Held for Sale and
Discontinued Operations, the Company has determined that the sale of its remaining South African
producing assets and related liabilities are required to be treated as non-current assets held for sale
and disclosed as discontinued operations. This accounting treatment will result in the separation of the
earnings disclosures between continuing operations and discontinued operations in the current period
results. The earnings disclosures for all comparative periods presented will also be separated between
continuing operations and discontinued operations to align with the current year disclosures as required
by IFRS 5.
The effect of the application of IFRS 5 on the current and comparative period earnings will be explained
in the Company’s results announcement on 21 February 2020, which shareholders should consider in
order to gain a full appreciation of the Company’s financial performance.
The classification of the remaining South African producing assets and related liabilities to held for sale
resulted in a non-cash impairment charge of $385m (post-tax) or 92 cents per share accounted for in
order to reflect these assets and liabilities at the lower of carrying value and fair value less costs to sell,
therefore negatively impacting the total basic loss for the current period.
The expected overall increase in headline earnings for the period compared to the comparative period
was primarily due to the following reasons:
The higher gold price received on gold sold during the period, coupled with weaker local
currencies assisted the improved financial performance of the Company and more than negated
the lower gold output, higher operating costs mainly due to inflation and lower grades, and the
payment of higher royalties and taxes.
Income from Kibali and other equity investments increased by $46 million (post-tax) or 11 cents
Total basic loss (from continuing and discontinued operations)
In addition to the effects on headline earnings, total basic loss (from continuing and discontinued
operations) was negatively impacted by the non-cash impairment charge of the South African asset
sale as described above.
This was partially off-set by the non-recurrence of significant once-off items affecting basic earnings for
the prior period as follows:
A non-cash impairment of the Uranium plant relating to Mine Waste Solutions of $66 million
(post-tax) or 16 cents per share.
Retrenchment costs related to the restructured South African operations of $25 million (posttax) or 6 cents per share.
The current period headline earnings and total basic loss (from continuing and discontinued operations)
were also negatively impacted by the recognition of an increase in the non-cash environmental
rehabilitation obligation of $15m (post-tax) or 4 cents per share as a result of the changes in
environmental legislation in Brazil relating to tailings storage facilities.
The forecast financial information on which this trading statement is based has not been reviewed or
reported on by AngloGold Ashanti’s external auditors.
12 February 2020
JSE Sponsor: The Standard Bank of South Africa Limited
courtesy of Bell Direct
( DYOR )
i hold AGG ( 'free-carried' ) i took the opportunity to rescue my investment cash in August 2019