Performance in 2009

In 2009, AngloGold Ashanti produced 4.60Moz of gold, a decrease of 8% on the 4.98Moz produced in 2008, which was in line with the revised production forecast.

Total cash costs for the year increased from $444/oz to $514/oz in 2009, mainly due to lower production, lower grade, ore stockpile inventory draw downs and inflation.

Given the focus on optimising operational performance and maintaining costs, the group continued to invest significantly in capital expenditure. Capital expenditure for the year amounted to $1,027m (2008: $1,201m), of which 26% ($264m) was stayin- business expenditure, and 34% ($347m) was spent on ore reserve development, principally at the South African operations and 40% ($416m) was spent on new project development.

Key performance statistics

		2009	2008	% change
Gold produced	(000oz)	4,599	4,982	(8)
Average gold spot price	($/oz)	974	872	12
Average received gold price (1)	($/oz)	751	485	55
Total cash costs	($/oz)	514	444	16
Total production costs	($/oz)	646	567	14
Ore Reserves (2)	(Moz)	71	75	(5)
Revenue	($m)	3,916	3,743	5
Gold income	($m)	3,768	3,619	4
Gross (loss) profit	($m)	(578)	594	(197)
Adjusted gross profit (loss) (3)	($m)	412	(384)	207
Adjusted headline loss (4)	($m)	(50)	(897)	94
Adjusted headline loss per share	(US cents)	(14)	(283)	95
Dividends per share	(US cents)	17	11	55
Average exchange rate	(R/$)	8.39	8.25	2
Exchange rate at year-end	(R/$)	7.44	9.46	(21)
Share price at year-end:
JSE	(R/share)	306.29	252.00	21
NYSE	($/share)	40.18	27.71	45
Market capitalisation at year-end	($m)	14,555	9,795	49

(1)	Average received gold price excluding the effects of the hedge buy-back costs is $925/oz in 2009 and $702/oz in 2008.
(2)	After adjusting for the Boddington sale, ore reserves increased by 5% from 68.2Moz to 71.4Moz.
(3)	Gross (loss) profit excluding unrealised non-hedge derivatives and other commodity contracts.
(4)	Headline loss excluding unrealised non-hedge derivatives, fair value adjustments on the option component of the convertible bond, adjustments to other commodity contracts and deferred tax thereon.

The following diagram shows major transactions undertaken since mid 2008.

Economic value added

The group generated significant economic value for its stakeholders during the year, with total economic value generated rising by 4%.

Economic value added statement for the year ended 31 December 2009

		$m		$m
	%	2009	%	2008
Economic value generated
Gold sales and by-product income	98	3,862	97	3,677
Interest received	1	54	2	66
Profit from sale of assets	1	49	1	55
Profit from sale of investments	–	–	–	2
Total economic value generated	100	3,965	100	3,800
Economic value distributed
Operating costs (1)	33	1,296	41	1,552
Employee salaries, wages and other benefits	28	1,117	26	986
Payments to providers of capital	5	184	4	155
– Finance costs and unwinding of obligations	4	139	3	114
– Dividends	1	45	1	41
Payments to governments
– Current taxation	4	164	3	92
Community and social investments (2)	–	11	–	8
Total economic value distributed	70	2,772	74	2,793
Economic value retained	30	1,193	26	1,007

(1)	Operating costs are lower in 2009 due to exchange gains of $112m (2008: $4m), favourable metal inventory movements of $63m (2008: unfavourable $16m), and share of equity accounted investments' profit of $94m in 2009 (2008: loss of $138m).
(2)	Community and social investments exclude equity-accounted joint ventures.

Payments to and assistance from government

AngloGold Ashanti discloses all payments to government in support of its commitments under the Extractive Industries Transparency Initiative (EITI). The following tables give details of all payments made to governments, whether or not the government concerned is a member of the EITI. Note: The 2008 figures have been restated in terms of revised classifications, the addition of payments for certain exploration sites and VAT payments have been excluded as in most instances these are reimbursed.

Argentina ($ 000)	2009	2008 Restated
Dividends paid to the government	750	888
Taxation paid	–	4,368
Withholding tax (STC, royalties, etc)	16,766	13,536
Other indirect taxes and duties	1,631	1,599
Employee taxes and other contributions**	5,675	2,869
Property tax	6	3
Other***	11,764	8,186
Total	36,592	31,449

**	Includes remittance made to government but borne by employees as individual taxation, e.g. PAYE, UIF
***	Tax on exports

Australia ($ 000)	2009	2008 Restated
Dividends paid to the government	–	–
Taxation paid*	31,398	43,229
Withholding tax (STC, royalties, etc)	11,657	12,860
Other indirect taxes and duties	–	–
Employee taxes and other contributions**	11,327	9,556
Property tax	–	–
Other	–	–
Total	54,382	65,645

*	Includes capital gains tax for 2009
**	Includes remittance made to government but borne by employees as individual taxation, e.g. PAYE, UIF

Brazil ($ 000)	2009	2008 Restated
Dividends paid to the government	–	–
Taxation paid *	37,102	47,815
Withholding tax (STC, royalties, etc)	6,821	6,735
Other indirect taxes and duties	3,478	1,633
Employee taxes and other contributions**	28,635	24,451
Property tax	1,129	1,583
Other (includes tax on vehicle ownership)	1,188	645
Total	78,353	82,862

*	Includes capital gains tax for 2009
**	Includes remittance made to government but borne by employees as individual taxation, e.g. PAYE, UIF

Colombia ($ 000)	2009	2008 Restated
Dividends paid to the government	–	–
Taxation paid	233	277
Withholding tax (STC, royalties, etc)	1,346	1,171
Other indirect taxes and duties	79	239
Employee taxes and other contributions**	3,910	3,432
Property tax	1	–
Other (tenement fees)	4,048	2,934
Total	9,617	8,053

**	Includes remittance made to government but borne by employees as individual taxation, e.g. PAYE, UIF

DRC ($ 000)	2009	2008 Restated
Dividends paid to the government	–	–
Taxation paid	1,957	1,925
Withholding tax (STC, royalties, etc)	100	147
Other indirect taxes and duties	–	–
Employee taxes and other contributions**	120	102
Property tax	–	–
Other	–	–
Total	2,177	2,174

**	Includes remittance made to government but borne by employees as individual taxation, e.g. PAYE, UIF

Ghana ($ 000)	2009	2008 Restated
Dividends paid to the government	1,425	1,379
Taxation paid	7,233	1,912
Withholding tax (STC, royalties, etc)	20,027	17,504
Other indirect taxes and duties	5,851	9,266
Employee taxes and other contributions**	20,218	11,570
Property tax	482	49
Other	173	399
Total	55,409	42,079

**	Includes remittance made to government but borne by employees as individual taxation, e.g. PAYE, UIF

Guinea ($ 000)	2009	2008 Restated
Dividends paid to the government	–	1,500
Taxation paid	37,881	–
Withholding tax (STC, royalties, etc)	17,137	30,069
Other indirect taxes and duties	3,180	1,490
Employee taxes and other contributions**	5,052	3,332
Property tax	–	–
Other	317	1,230
Total	63,567	37,621

**	Includes remittance made to government but borne by employees as individual taxation, e.g. PAYE, UIF

Mali ($ 000)	2009	2008 Restated
Dividends paid to the government	50,516	38,000
Taxation paid	66,409	42,075
Withholding tax (STC, royalties, etc)	20,809	21,750
Other indirect taxes and duties	8,914	2,359
Employee taxes and other contributions**	5,113	9,382
Property tax	369	–
Other	1,166	4,579
Total	153,296	118,145

**	Includes remittance made to government but borne by employees as individual taxation, e.g. PAYE, UIF

Namibia ($ 000)	2009	2008 Restated
Dividends paid to the government	–	–
Taxation paid	2,195	5,042
Withholding tax (STC, royalties, etc)	1,911	1,789
Other indirect taxes and duties	–	–
Employee taxes and other contributions**	2,660	2,013
Property tax	67	–
Other***	–	392
Total	6,833	9,236

**	Includes remittance made to government but borne by employees as individual taxation, e.g. PAYE, UIF
***	Land tax

South Africa ($ 000)	2009	2008 Restated
Dividends paid to the government	–	–
Taxation paid	17,740	6,468
Withholding tax (STC, royalties, etc)	–	–
Other indirect taxes and duties	–	–
Employee taxes and other contributions**	92,130	82,768
Property tax	2,191	1,870
Other (Skills development levy)	5,646	–
Total	117,707	91,106

**	Includes remittance made to government but borne by employees as individual taxation, e.g. PAYE, UIF

Tanzania ($ 000)	2009	2008 Restated
Dividends paid to the government	–	–
Taxation paid	1,284	715
Withholding tax (STC, royalties, etc)	10,014	6,966
Other indirect taxes and duties	34,834	18,251
Employee taxes and other contributions**	12,947	12,165
Property tax	–	–
Other***	664	369
Total	59,743	38,466

** Includes remittance made to government but borne by employees as individual taxation, e.g. PAYE, UIF

***Comprises annual road levy to the Geita district, forest clearance fees and airport taxes for 2008

USA ($ 000)	2009	2008 Restated
Dividends paid to the government	–	–
Taxation paid	(1,895)	300
Withholding tax (STC, royalties, etc)	–	–
Other indirect taxes and duties	–	–
Employee taxes and other contributions**	4,270	3,795
Property tax	1,168	840
Other (Production mine tax)	1,933	1,450
Other (Severance tax)	1,100	1,328
Total	6,576	7,713

** Includes remittance made to government but borne by employees as individual taxation, e.g. PAYE, UIF

Group ($ 000)	2009	2008 Restated
Dividends paid to the government	52,691	41,767
Taxation paid	201,537	154,126
Withholding tax (STC, royalties, etc)	106,588	112,527
Other indirect taxes and duties	57,967	34,837
Employee taxes and other contributions**	192,057	165,435
Property tax	5,413	4,345
Other	27,999	21,512
Total	644,252	534,549

Assistance from government

No significant financial assistance was received by the company or the operations from government in any of the jurisdictions in which the company operates. Any assistance received is detailed in the table below.

Country	Value ($ 000) 2009	Description	Value ($ 000) 2008	Description
Argentina
Cerro Vanguardia	1,652	Patagonia Port Incentive	13,724	Subsidies/rebates
	1,227	Income tax 30%	3,320	Other financial benefits from government
Mali
Sadiola/Yatela	–		6,873	Tax relief (see details above).
Australia
Sunrise Dam	749	Tax relief/credits	–
South Africa
SA Operations	1,725	Skills development levy	1,400
	1,634	Mining Qualification Association DiscretionaryGrants	1,180
AngloGold Health	320	Free TB drugs	–

Corporate social investment

AngloGold Ashanti invests significantly in the communities in which it operates. Corporate social investment spend in 2009 rose by 29% to $10.88m, compared with $8.44m in 2008. For accounting purposes, corporate social investment expenditure is defined as the voluntary investment of funds in the broader community through programmes spanning a range of development and maintenance activities that seek to complement the work of government, NGOs and community-based organisations (CBOs), where the target beneficiaries are external to the company. Corporate social investment specifically excludes those activities where the purpose is primarily commercial, for example, marketing, employee benefits or public relations activities. The vehicles for corporate social investment differ from region to region, and operation to operation, and are in line with the specific needs identified through engagement with communities. The following table shows community investment spend by region in 2009.

Corporate social investment spend by ($000)

	2009	2008	Reason for variance
Southern Africa
Namibia	423	86
Navachab	423	86	Purchase of a school, which was previously leased. Renovation of a local police station and increased bursary allocation.
South Africa	2,962	3,177
Corporate	2,836	2,993
South African operations	126	184
Continental Africa
Ghana	2,530	2,287
Iduapriem	146	332
Obuasi	2,266	1,955
Ghana Corporate	118	–
Guinea	511	285
Siguiri	511	285(1)
Mali	543	620
Morila	171	60	Bridge and road repairs.
Sadiola (38%)(2) and Yatela (40%)	372	560	Reduction due to once-off inoculation campaign and waste management assistance to regional and local authorities.
Tanzania	1,132	373
Geita	1,132	373	Feasibility study for Geita town water project, inclusion of mining technical training centre, contribution to regional educational fund and completion of phase 1 of community clinic.
DRC	386	119
Exploration	386	119	Increased community investment initiatives as this exploration project advances.
Australasia
Australia	133	117
Sunrise Dam	133	117
North America
USA	391	253
CC&V	391	253	The economic downturn put pressure on non-profit organisations resulting in a significant increase in requests. There was also increased focus on mining and minerals related education and preservation activities.
South America
Argentina	675	638
Cerro Vanguardia	675	638(1)
Brazil	938	1,007
Brasil Mineração	754	839
Serra Grande	184	168(1)
Colombia	800	99
Exploration	737	99	The advanced stage of this exploration project required major community investment.
Greenfields	63	–
Sub-total	11,424	9,061
Equity accounted investments included above	(543)	(620)
Total	10,881	8,441

(1)	Restated: 2008 figure was attributable expenditure
(2)	Effective 29 December 2009, AngloGold Ashanti increased its interest to 41%