Group financial statements

The non-current trade debtor is non-interest bearing and repayable over three years.

Current trade debtors are non-interest bearing and are generally on terms less than 90 days.

There is no concentration of credit risk with respect to trade receivables, as the group has a large number of internationally dispersed customers.

There is a concentration of risk in respect of recoverable value added tax and fuel duties from the Malian and the Tanzanian governments.

Recoverable value added tax due from the Malian government amounts to an attributable $42m, R286m at 31 December 2007 (31 December 2006: $34m, R237m). The last audited value added tax return was for the period ended 31 March 2007 and at balance sheet date an attributable $25m, R170m (2006: $19m, R131m) was still outstanding, and $17m, R116m (2006: $15m, R107m) is still subject to audit. The accounting processes for the unaudited amount are in accordance with the processes advised by the Malian government in terms of previous audits.

Recoverable fuel duties from the Malian government amounts to an attributable $7m, R48m at 31 December 2007 (31 December 2006: $11m, R73m). Fuel duty refund claims are required to be submitted before 31 January of the following year and are subject to authorisation by, firstly, the Department of Mining, and secondly, the Customs and Excise authorities. The Customs and Excise authorities have approved an attributable $2m, R14m (2006: $5m, R34m), which is still outstanding, while an attributable $5m, R34m (2006: $6m, R39m) is still subject to authorisation. Accounting processes for the unauthorised amount are in accordance with the processes advised by the Malian government in terms of previous authorisations. As from February 2006 all fuel duties have been exonerated.

The government of Mali is a shareholder in all Malian owned entities. Management is in negotiations with the government of Mali to agree a protocol for the repayment of the outstanding amounts. The amounts outstanding have been discounted to their present value at a rate of 6.5%.

Recoverable value added tax due from the Tanzanian government amounts to $16m, R109m at 31 December 2007 (31 December 2006: $14m, R97m). The last audited value added tax return was for the period ended 30 June 2007 and at 31 December 2007 $14m, R95m (31 December 2006: $9m, R63m) was still outstanding and $2m, R14m (31 December 2006: $5m, R34m) is still subject to audit. The accounting processes for the unaudited amount are in accordance with the processes advised by the Tanzanian government in terms of previous audits. The amounts outstanding have been discounted to their present value at a rate of 7.8%.

The draft agreement currently contains conditions precedent including that the Minister must approve of the cession of the Weltevreden mining right from AngloGold Ashanti to Aflease, unconditional approval of the transaction by the Competition Commission and approval by the JSE of issue and allotment of the Aflease shares.

Rand Refinery allocated parts of its premises $1m, R10m previously recognised as a tangible asset, to held for sale. Rand Refinery intends to sell off parts of the estate that are no longer utilised within the next 12 months. A buyer has been found and a sale agreement has been drawn up, the parties are in the process of finalising the agreement.

Effective 30 June 2007, exploration properties of $15m, R100m acquired from Trans-Siberian Gold plc situated in Russia were classified as assets held for sale. The expected cash sale of these exploration properties would form part of the joint venture agreement between Polymetal and AngloGold Ashanti which is expected to be concluded during 2008.

Arising from the sale of Bibiani, effective 1 December 2006, to Central African Gold plc (CAG), the group decided to apply $3m, R23m of the partial proceeds to an investment in 15,825,902 CAG shares. Subsequent to this decision, local regulators required that the 15,825,902 shares in CAG be sold within 90 days of 28 December 2006.

On 14 February 2007, the company disposed of 7,000,000 CAG shares yielding total proceeds of $1m, R11m and during April 2007, disposed of the remaining 8,825,902 CAG shares yielding total proceeds of $2m, R13m.

The rights and restrictions applicable to the A and B redeemable preference shares.

A redeemable preference shares are entitled to:

• an annual dividend, after payment in full of the annual dividend on the B preference shares, equivalent to the balance of after tax profits from mining the Moab Lease Area; and
• on redemption, the nominal value of the shares and a premium per share equal to the balance of the net proceeds from disposal of assets relating to the Moab Lease Area, after redemption in full of the B preference shares and payments of the nominal value of the A preference shares.

B redeemable preference shares are entitled to:

• an annual dividend limited to a maximum of 5% of their issue price from the period that profits are generated from the Moab Lease Area; and
• on redemption, the nominal value of the shares and a premium of up to R249.99 per share provided by the net proceeds from disposal of the assets relating to the Moab Lease Area.

The Moab Lease Area consists of the Moab Khotsong mine operations.

If the bonds have not been converted by 20 February 2009, they will be redeemed at par on 27 February 2009. AngloGold Ashanti Holdings plc has the option of calling an early redemption of all the bonds three years after their issuance, if the price of the ADSs exceeds 130% of the conversion price for more than 20 days during any period of 30-consecutive trading days.