Company notes to the financial statements

For the year ended 31 December

1 Revenue

Figures in million	2009	2008
	SA Rands
Revenue consists of the following principal categories:
Gold income	12,461	12,652
By-products (note 2)	363	144
Dividends received from subsidiaries (note 27)	543	538
Interest received (note 27)
– loans and receivables	5	4
– cash and cash equivalents	153	278
	13,525	13,616

2 Cost of sales

Figures in million	2009	2008
	SA Rands
Cash operating costs (1)	7,222	6,322
By-products (note 1)	(363)	(144)
	6,859	6,178
Other cash costs	40	34
Total cash costs	6,899	6,212
Retrenchment costs (note 7)	77	72
Rehabilitation and other non-cash costs	(3)	98
Production costs	6,973	6,382
Amortisation of tangible assets (notes 6, 9 and 27)	2,217	1,903
Total production costs	9,190	8,285
Inventory change	(29)	11
	9,161	8,296
(1) Cash operating costs comprises:
– salaries and wages	3,832	3,379
– stores and other consumables	1,876	1,603
– fuel, power and water	970	775
– contractors	107	103
– services and other charges	437	462
	7,222	6,322

3 Other operating expenses (income)

Figures in million	2009	2008
	SA Rands
Pension and medical defined benefit provisions	41	(9)

4 Operating special items

Figures in million	2009	2008
Operating special items	SA Rands
Impairment net of reversals of tangible assets (notes 9 and 19)	200	136
Loss on disposal and derecognition of land, mineral rights and tangible assets	113	53
Impairment of Pamodzi Gold debtor	66	–
Loan waived	3	–
Insurance claim recovery	(79)	(28)
Loss on disposal of investment	–	38
ESOP costs resulting from rights offer (group note 11)	–	76
Profit on disposal of investment in Nufcor International Limited (1)	–	(364)
	303	(89)

(1)	On 27 June 2008, AngloGold Ashanti Limited sold its 50% interest in Nufcor International Limited, a London-based uranium marketing, trading and advisory business to Constellation Energy Commodities Group for net proceeds of R382m and realised a profit of R364m.

5 Finance costs and unwinding of obligations

Figures in million	2009	2008
	SA Rands
Finance costs on corporate bond (1)	–	141
Finance lease charges	25	25
Other	9	6
	34	172
Amounts capitalised (note 9)	–	(38)
	34	134
Unwinding of decommissioning obligation (note 22)	33	41
Unwinding of restoration obligation (note 22)	22	17
(note 27)	89	192
(1) Finance costs have been determined using the effective interest rate method.

6 (Loss) profit before taxation

Figures in million	2009	2008
	SA Rands
(Loss) profit before taxation is arrived at after taking account of:
Auditors’ remuneration
– audit fees	44	32
– over provision prior year	(3)	(1)
– other assurance services	4	11
	45	42
Amortisation of tangible assets
– owned assets	2,200	1,887
– leased assets	17	16
(notes 2, 9 and 27)	2,217	1,903
Grants for educational and community development	25	24
Operating lease charges	139	111

7 Employee benefits

Figures in million	2009	2008
	SA Rands
Employee benefits including executive directors’ salaries and other benefits	4,785	4,158
Health care and medical scheme costs
– current medical expenses	362	326
– defined benefit post-retirement medical expenses	79	95
Pension and provident plan costs
– defined contribution	307	263
– defined benefit pension plan	23	(26)
Retrenchment costs (note 2)	77	72
Share-based payment expense (1)	256	270
Included in cost of sales, other operating expenses (income), operating special items and corporate administration and other expenses	5,889	5,158
Actuarial defined benefit plan expense analysis
Defined benefit post-retirement medical
– current service cost	4	6
– interest cost	75	89
	79	95
Defined benefit pension plan
– current service cost	51	49
– interest cost	137	139
– expected return on plan assets	(165)	(214)
	23	(26)
Actual return on plan assets
– South Africa defined benefit pension plan	264	(61)
Refer to the Remuneration report for details of directors’ emoluments.

(1)	Details of the equity-settled share-based payment arrangements of the group have been disclosed in group note 11. These arrangements consist of awards by the company to employees of various group companies. The income statement expense of R256m (2008: R270m) for the company is only in respect of awards made to employees of the company.

8 Taxation

Figures in million	2009	2008
	SA Rands
Current taxation
Mining tax (1)	153	–
Non-mining tax (2)	33	31
Under provision prior year	32	43
(note 26)	218	74
Deferred taxation
Temporary differences (3)	534	(159)
Unrealised non-hedge derivatives and other commodity contracts	(1,451)	841
Change in estimated deferred tax rate (4)	(156)	62
Change in statutory tax rate	–	(70)
(note 24)	(1,073)	674
	(855)	748
Tax reconciliation
A reconciliation of the effective tax rate charged in the income statement to the prevailing mining and non-mining tax rate is set out in the following table:
	%	%
Effective tax rate	67	35
Disallowable items	(4)	5
Exchange variation and translation adjustments	(6)	–
Dividends received	(15)	(9)
Impact of prior year under provisions	2	2
Change in estimated deferred tax rate (4)	(12)	3
Change in statutory tax rate	–	(3)
Other	3	2
Estimated corporate tax rate (5)	35	35

(1)	There was no mining tax charge in 2008 as the mining income was primarily offset by the non-mining losses from the accelerated non-hedge derivative buy-backs.
(2)	Non-mining income is taxed at the higher non-mining tax rate of 35% (2008: 35%) as the company has elected to be exempt from STC. Companies who elected to be subject to STC are taxed at the lower company tax rate of 28% (2008: 28%) for non-mining taxation purposes.
(3)	Included in temporary differences is a tax credit on the derecognition of tangible assets and impairments in respect of held for sale assets of R61m (2008: R75m).
(4)	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 company’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 R156m (2008: tax charge of R62m).
(5)	Mining tax on mining income is determined according to a formula based on profit and revenue from mining operations. The company has elected to be exempt from STC and is taxed at a higher rate of company tax for mining and non-mining income tax purposes.

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 mining income. Capital expenditure not deducted from mining income is carried forward as unredeemed capital to be deducted from future mining income. The company 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 mining tax rate is:
Y = 43 – 215/X (2008: Y = 43 – 215/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.

The maximum statutory mining tax rate is 43% (2008: 43%), non-mining statutory tax rate 35% (2008: 35%) and statutory company tax rate 28% (2008: 28%).

9 Tangible assets

Figures in million	Mine develop- ment costs	Mine infra- structure	Mineral rights and dumps	Assets under con- struction (1)	Land and buildings	Total
SA Rands
Cost
Balance at 1 January 2008	18,490	4,689	545	491	265	24,480
Additions
– project capital	252	4	–	322	–	578
– stay-in-business capital	1,950	241	–	–	–	2,191
Disposals	–	(2)	–	–	–	(2)
Transfers and other movements (2)	(56)	(1,017)	156	–	–	(917)
Finance costs capitalised (note 5)	38	–	–	–	–	38
Balance at 31 December 2008	20,674	3,915	701	813	265	26,368
Accumulated amortisation
Balance at 1 January 2008	8,233	2,744	194	–	12	11,183
Amortisation for the year (notes 2, 6 and 27)	1,702	159	25	–	17	1,903
Impairment (note 4) (3)	159	–	–	–	–	159
Impairment reversal (note 4) (3)	(23)	–	–	–	–	(23)
Transfers and other movements (2)	(29)	(894)	56	–	–	(867)
Balance at 31 December 2008	10,042	2,009	275	–	29	12,355
Net book value at 31 December 2008	10,632	1,906	426	813	236	14,013
Cost
Balance at 1 January 2009	20,674	3,915	701	813	265	26,368
Additions
– project capital	294	2	–	270	–	566
– stay-in-business capital	2,453	216	–	–	–	2,669
Transfers and other movements (2)	(2,018)	(143)	(156)	–	–	(2,317)
Balance at 31 December 2009	21,403	3,990	545	1,083	265	27,286
Accumulated amortisation
Balance at 1 January 2009	10,042	2,009	275	–	29	12,355
Amortisation for the year (notes 2, 6 and 27)	2,037	141	22	–	17	2,217
Transfers and other movements (2)	(1,334)	(35)	(56)	–	(1)	(1,426)
Balance at 31 December 2009	10,745	2,115	241	–	45	13,146
Net book value at 31 December 2009	10,658	1,875	304	1,083	220	14,140

Included in land and buildings are assets held under finance leases with a net book value of R201m (2008: R218m).

The majority of the leased assets are pledged as security for the related finance lease.

No assets are encumbered by project finance.

The capitalisation rate used to determine the amount of borrowing costs eligible for capitalisation is 10.65% for 2008. There are no finance costs capitalised in 2009.

A register containing details of properties is available for inspection by shareholders or their duly authorised agents during business hours at the registered office of the company.

(1)	Assets under construction account for expenditures recognised in the carrying amount of property, plant and equipment in the course of its construction. The 2008 amounts were reclassified to include the effect of separate disclosure to enhance disclosure of tangible assets.
(2)	Transfers and other movements comprise amounts from changes in estimates of decommissioning assets, asset reclassifications and transfers to/from non-current assets held for sale.

In 2009, transfers to non-current assets held for sale comprised:

• assets with a net book value of R704m relating to Tau Lekoa were transferred to non-current assets held for sale.

In 2008, transfers to/from non-current assets held for sale comprised:

• assets with a net book value of R22m relating to the discontinued operations were transferred to non-current assets held for sale and disposed of during 2008; and
  
• assets with a net book value of R100m relating to Weltevreden were transferred from non-current assets held for sale to tangible assets held for use.
  

Figures in million	2009	2008
	SA Rands
(3) Impairment and impairment reversal include the following:
Below 120 level at TauTona – mine development costs
Due to a change in the mine plan resulting from safety-related concerns following seismic activity, a portion of the below 120 level development had been abandoned and will not generate future cash flows.	–	159
East of Bank Dyke at TauTona – mine development cost	–	(23)
Due to a re-assessment of the mine plan, the East of Bank Dyke access development had become economically viable. The increased gold price will generate future cash flows, and as a result, the impairment raised during 2005 was partially reversed.
The impairment calculation methodology is included in group note 16.	–	136

10 Investments in associates and joint venture

Figures in million	2009	2008
	SA Rands
The carrying value of investments in associates and joint venture can be analysed as follows:
Carrying value of investment in associates	25	15
Loans advanced to associates (1)	17	15
Loan advanced to joint venture (2)	12	–
	54	30

In 2009 and 2008, the Margaret Water Company investment was impaired. The impairment tests considered the investment's fair value and anticipated future cash flows. Impairments of R4m (2008: R4m) were recorded.

⁽¹⁾Loans advanced to associates consist of R12m (2008: R15m) to Oro Group (Pty) Limited and R5m (2008: nil) to Orpheo (Pty) Limited. The Oro Group (Pty) Limited loan bears interest at a rate determined by the Oro Group (Pty) Limited's board of directors and is repayable at their discretion. The Orpheo (Pty) Limited loan is unsecured, interest free and there are no fixed terms of repayment.

⁽²⁾Loan advanced to AuruMar (Pty) Limited has no fixed terms of repayment.

Investments in associates comprises:

	2009	2008
	Effective
Name	%	%	Description
Oro Group (Pty) Limited (1)	25	25	Manufacture and wholesale of jewellery.
Margaret Water Company	33.3	33.3	Pumping of underground water in the Vaal River Region.
Orpheo (Pty) Limited	33.3	–	Design, manufacture and wholesale of jewellery.
Wonder Wise Holdings Limited	25	–	Marketing and wholesale of jewellery.

⁽¹⁾Equity accounting is based on results to 30 September 2009, adjusted for material transactions.

Investment in joint venture comprises:

	2009	2008
	Effective
Name	%	%	Description
AuruMar (Pty) Limited	50	–	Global exploration of marine deposits containing gold as the primary mineral.

11 Investment in subsidiaries

Figures in million	2009	2008
	SA Rands
Shares at cost:
Advanced Mining Software Limited	2	2
AGRe Insurance Company Limited	14	14
AngloGold Ashanti Americas Investments Limited	849	849
AngloGold Ashanti USA Incorporated	2,722	2,722
AngloGold Ashanti Holdings plc	27,677	23,953
AngloGold Namibia (Pty) Limited	51	51
AngloGold Offshore Investments Limited	327	327
Eastvaal Gold Holdings Limited	917	917
Nuclear Fuels Corporation of SA (Pty) Limited	7	7
Rand Refinery Limited (1)	116	116
Xinjiang Yunhai Mining Company Limited	–	10
Gansu Jinchanggou Mining Company Limited	15	15
	32,697	28,983

⁽¹⁾The statutory year-end of Rand Refinery Limited is 30 September. The management accounts of Rand Refinery Limited have been included in the group’s results for the year ended 31 December 2009.

In terms of IAS 27, the Environmental Rehabilitation Trust Fund is deemed to be a subsidiary (note 14).

12 Other investments

Figures in million	2009	2008
	SA Rands
Unlisted investments
Available for sale
Balance at beginning of year (1)	2	2
Balance at end of year	2	2
Available for sale unlisted investments consist primarily of the Chamber of Mines Building Company Limited.
Held to maturity
Balance at beginning of year	14	14
Balance at end of year	14	14
Total other investments (note 30)	16	16

The investment held to maturity consists of the Gold of Africa Museum.

⁽¹⁾There is no active market for the unlisted equity investments and fair value cannot be reliably measured. The unlisted equity investments are carried at cost. The company does not intend to sell the investments in the foreseeable future.

13 Inventories

Figures in million	2009	2008
	SA Rands
Work in progress
– gold in process	253	277
Finished goods
– gold doré/bullion	33	4
– by-products	233	202
Total metal inventories	519	483
Mine operating supplies	155	186
Total inventories (1)	674	669

⁽¹⁾The amount of the write-down of gold in process, gold doré/bullion, by-products and mine operating supplies to net realisable value, and recognised as an expense is R1m (2008: R1m). This expense is included in cost of sales which is disclosed in note 2.

14 Investment in Environmental Rehabilitation Trust Fund

Figures in million	2009	2008
	SA Rands
Balance at beginning of year	294	294
Balance at end of year	294	294
The fund is managed by Rand Merchant Bank and invested mainly in equities, government long bonds and other fixed-term deposits.

15 Intra-group balances

Figures in million	2009	2008
	SA Rands
Advanced Mining Software Limited	(10)	(18)
AngloGold Ashanti Americas Investments Limited	(52)	(66)
AngloGold Ashanti Australia Limited	13	12
AngloGold Ashanti Brasil Mineração Ltda	23	21
AngloGold Ashanti (Ghana) Limited	85	109
AngloGold Ashanti Health (Pty) Limited	3	22
AngloGold Ashanti Holdings plc	(556)	(709)
AngloGold Ashanti (Iduapriem) Limited	9	17
AngloGold Ashanti North America Inc	18	13
AngloGold Namibia (Pty) Limited	4	4
AngloGold Offshore Investments Limited	(5)	(6)
AngloGold South America Limited	(202)	(256)
Ashanti Goldfields Kilo Scarl	6	9
Cerro Vanguardia S.A.	2	2
Eastvaal Gold Holdings Limited	(604)	(606)
Gansu Jinchanggou Mining Company Limited	–	(5)
Geita Gold Mining Limited	88	41
Masakhisane Investment Limited	–	1
Mineração Serra Grande S.A.	3	–
Nuclear Fuels Corporation of SA (Pty) Limited	86	58
Société Ashanti Goldfields de Guinée S.A.	28	38
Société d’Exploitation des Mines d’Or de Sadiola S.A.	–	2
	(1,061)	(1,317)
Included in the statement of financial position as follows:
Non-current assets	387	388
Non-current liabilities	(1,448)	(1,705)
	(1,061)	(1,317)

During 2009, loans to the joint ventures of R4m (2008: R3m) were reclassified to trade and other receivables (note 17).

16 Other non-current assets

Figures in million	2009	2008
	SA Rands
AngloGold Ashanti Limited Pension Fund (note 23)	38	–
Loans and receivables
Loan repayable between 31 December 2009 and 31 December 2011 bearing interest at 3% per annum	5	7
Other non-interest bearing loans and receivables – repayable on various dates	2	3
	45	10
Current portion of other non-current assets included in current assets	(1)	–
	44	10

17 Trade and other receivables

Figures in million	2009	2008
	SA Rands
Non-current
Other debtors	136	140
Amounts due from related parties (note 15)	4	3
	140	143
Current
Trade debtors	92	24
Prepayments and accrued income	15	192
Recoverable tax, rebates, levies and duties	111	72
Amounts due from related parties	35	40
Interest receivable	12	10
Other debtors	23	48
	288	386
Total trade and other receivables	428	529
Current trade debtors are non-interest bearing and are generally on terms less than 90 days.
As at 31 December 2009, trade receivables were impaired by R79m (2008: R12m).

18 Cash and cash equivalents

Figures in million	2009	2008
	SA Rands
Cash and deposits on call	715	528
Money market instruments	1,005	930
(note 30)	1,720	1,458

19 Non-current assets and liabilities held for sale

Effective 17 February 2009, the interest in the Tau Lekoa mine together with the adjacent Weltevreden, Jonkerskraal and Goedgenoeg project areas in South Africa were classified as held for sale. Tau Lekoa was previously recognised as a combination of tangible assets, current assets and current and long-term liabilities. The company has agreed to sell Tau Lekoa, subject to conditions precedent usual to a transaction of this nature, to Simmer and Jack Mines Limited (Simmers).

Purchase consideration consists of two components: an initial cash payment or combination of cash payments and Simmers shares together with future royalty payments.

The effective date will occur on the later of 1 January 2010, or the first day in the calendar month following the fulfilment of all conditions precedent to the transaction. The company will continue to operate Tau Lekoa until the effective date with appropriate joint management arrangements with Simmers.

Figures in million	2009	2008
	SA Rands
Following the classification of Tau Lekoa as held for sale, an impairment loss of R200m was recognised in 2009 to reduce the carrying amount of the disposal group to the fair value less costs to sell (note 4).	529	–
	529	–
Non-current liabilities held for sale relating to Tau Lekoa being classified as held for sale.	56	–
	56	–

20 Share capital and premium

Figures in million	2009	2008
	SA Rands
Share capital
Authorised
600,000,000 (2008: 400,000,000) ordinary shares of 25 SA cents each	150	100
4,280,000 E ordinary shares of 25 SA cents each	1	1
2,000,000 A redeemable preference shares of 50 SA cents each	1	1
5,000,000 B redeemable preference shares of 1 SA cent each	–	–
	152	102
Issued and fully paid
362,240,669 (2008: 353,483,410) ordinary shares of 25 SA cents each (1)	90	88
3,794,998 (2008: 3,966,941) E ordinary shares of 25 SA cents each	1	1
2,000,000 (2008: 2,000,000) A redeemable preference shares of 50 SA cents each	1	1
778,896 (2008: 778,896) B redeemable preference shares of 1 SA cent each	–	–
	92	90
Share premium
Balance at beginning of year	38,158	23,253
Ordinary shares issued	2,436	14,927
E ordinary shares cancelled	(22)	(22)
Balance at end of year	40,572	38,158
Share capital and premium	40,664	38,248

⁽¹⁾During September 2009, AngloGold Ashanti Limited issued 7,624,162 ordinary shares at an issue price of R288.32 per share in terms of an equity offering. Total proceeds of R2.2bn was received. During July 2008, 69,470,442 rights offer shares were issued at a subscription price of R194.00 per share. Total proceeds of R13.5bn were raised.

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 Mining Right 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 Mining Right Area, after redemption in full of the B preference shares 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 Mining Right 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 Mining Right Area.
  

The Moab Mining Right Area consists of the Moab Khotsong mine operations.

The B preference shares will only be redeemable from any net proceeds remaining after the disposal of the Moab Mining Right Area following permanent cessation of mining activities. The maximum redemption price will be R250 per share.

In the event of any surplus remaining after the redemption in full of the B preference shares, the A preference shares will be redeemable at such value as would cover the outstanding surplus.

21 Borrowings

Figures in million	2009	2008
	SA Rands
Secured
Finance leases
Turbine Square Two (Pty) Limited	258	254
The leases are capitalised at an implied interest rate of 9.8% per annum. Lease payments are due in monthly instalments terminating in March 2022 and are rand-based. The buildings financed are used as security for these loans.
Vehicle leases	–	1
Interest is charged at a rate of 15.5% per annum. Loans are repayable in monthly instalments terminating in February 2011 and are rand-based. The vehicles financed are used as security for these loans.
Total borrowings (note 30)	258	255
Current portion of borrowings included in current liabilities	(2)	(2)
Total long-term borrowings	256	253
Amounts falling due
Within one year	2	2
Between two and five years	15	107
After five years	241	146
(note 30)	258	255

Undrawn facilities

There were no undrawn borrowing facilities as at 31 December 2009 (2008: nil).

22 Environmental rehabilitation provisions

Figures in million	2009	2008
	SA Rands
Provision for decommissioning
Balance at beginning of year	457	493
Change in estimates (1)	(86)	(75)
Transfer of liability to assets held for sale	(21)	–
Unwinding of decommissioning obligation (note 5)	33	41
Utilised during the year	–	(2)
Balance at end of year	383	457
Provision for restoration
Balance at beginning of year	440	389
Charge to income statement	13	72
Change in estimates (1)	(61)	(19)
Transfer of liability to assets held for sale	(13)	–
Unwinding of restoration obligation (note 5)	22	17
Utilised during the year	(15)	(19)
Balance at end of year	386	440
Total environmental rehabilitation provisions	769	897

⁽¹⁾The change in estimates relates to changes in laws and regulations governing the protection of the environment and factors relating to rehabilitation estimates and a change in the quantities of material in reserves and a corresponding change in the life of mine plan. These provisions are expected to unwind beyond the end of the life of mine.

23 Provision for pension and post-retirement benefits

Figures in million	2009	2008
	SA Rands
Defined benefit plans
The company has made provision for pension, provident and medical schemes covering substantially all employees. The retirement schemes consist of the following:
AngloGold Ashanti Limited Pension Fund (asset) liability (group note 29)	(38)	100
Post-retirement medical scheme for AngloGold Ashanti Limited South African employees
(group note 29)	1,095	1,070
	1,057	1,170
Transferred to other non-current assets (note 16):
– AngloGold Ashanti Limited Pension Fund	38	–
	1,095	1,170

24 Deferred taxation

Figures in million	2009	2008
	SA Rands
Deferred taxation relating to temporary differences is made up as follows:
Liabilities
Tangible assets	5,044	4,965
Inventories	47	103
Other	5	4
	5,096	5,072
Assets
Provisions	738	790
Derivatives	2,451	1,220
Tax losses	11	340
Other	78	98
	3,278	2,448
Net deferred taxation liability	1,818	2,624
The movement on the deferred tax balance is as follows:
Balance at beginning of year	2,624	1,888
Income statement movement (note 8)	(1,073)	674
Discontinued operations (group note 13)	–	(5)
Taxation on items included in other comprehensive income	248	55
Taxation on cost of ESOP Share Trust establishment	19	12
Balance at end of year	1,818	2,624

25 Trade and other payables

Figures in million	2009	2008
	SA Rands
Trade creditors	630	540
Accruals	1,107	702
Unearned premiums on normal sale exempted contracts	–	234
	1,737	1,476
Trade and other payables are non-interest bearing and are normally settled within 60 days.

26 Taxation

Figures in million	2009	2008
	SA Rands
Balance at beginning of year	629	591
Payments during the year	(148)	(53)
Provision during the year (note 8)	218	74
Discontinued operations (group note 13)	–	17
Balance at end of year	699	629

27 Cash generated from operations

Figures in million	2009	2008
	SA Rands
(Loss) profit before taxation	(1,277)	2,163
Adjusted for:
Movement on non-hedge derivatives and other commodity contracts	4,146	1,511
Amortisation of tangible assets (notes 2, 6 and 9)	2,217	1,903
Finance costs and unwinding of obligations (note 5)	89	192
Environmental rehabilitation and other expenditure	(85)	35
Operating special items	389	(89)
Interest received (note 1)	(158)	(282)
Dividends received from subsidiaries (note 1)	(543)	(538)
Foreign currency translation on intergroup loans	(221)	289
Other non-cash movements	123	157
Movements in working capital	19	(87)
	4,699	5,254
Movements in working capital:
Increase in inventories	(30)	(193)
Decrease (increase) in trade and other receivables	20	(57)
Increase in trade and other payables	29	163
	19	(87)

28 Related parties

Figures in million	2009	2008
	SA Rands
Material related party transactions were as follows:
Sales and services rendered to related parties
Joint ventures	155	95
Associates	(1)	–
Subsidiaries	397	346
Purchases and services acquired from related parties
Associates	16	15
Subsidiaries	290	334
Outstanding balances arising from sale of goods and services and other loans due by related parties
Joint ventures	34	35
Associates	34	22
Subsidiaries	681	683
Outstanding balances arising from purchases of goods and services and other loans owed to related parties
Subsidiaries	1,448	1,705
Amounts owed to/due by related parties are unsecured and non-interest bearing. Terms relating to associate and joint venture related parties are detailed in note 10.
Management fees, royalties, interest and net dividends from subsidiaries amounts to R40m (2008: R174m). In 2009, dividends of R1m (2008: R102m) were received from AngloGold Ashanti Holdings plc.
The group has refining arrangements with various refineries around the world including Rand Refinery Limited (Rand Refinery) in which it holds a 53% interest. Rand Refinery refines all of the group’s South African gold production and some of the group’s African (excluding South Africa) gold production. Rand Refinery charges AngloGold Ashanti Limited a refining fee.
The company received R68m from its insurance subsidiary, AGRe Insurance Company Limited, during the year with regard to insurance claims.
Doubtful debts expensed during the year amounted to R13m (2008: R12m).
Details of guarantees to related parties are included in note 29.
Shareholders
The top 20 shareholders of the company are detailed under Shareholder information
The list of principal subsidiaries and operating entities.
Directors and other key management personnel
Details relating to directors’ emoluments and shareholdings in the company are disclosed in the Remuneration and Directors’ reports.
Compensation to key management personnel included the following:
– short-term employee benefits	92	79
– post-employment benefits	13	2
– share-based payments	23	3
	128	84

29 Contractual commitments and contingencies

Figures in million	2009	2008
	SA Rands
Operating leases
At 31 December 2009, the company was committed to making the following payments in respect of operating leases for amongst others, the hire of plant and equipment and land and buildings. Certain contracts contain renewal options and escalation clauses for various periods of time.
Expiry:
– within one year	18	127
– between one and two years	–	17

Finance leases

The company has finance leases for buildings and motor vehicles. The building leases have terms of renewal but no purchase options and escalation clauses. The motor vehicle leases have no purchase option and have escalation clauses. Renewals are at the option of the lessee. Future minimum lease payments under finance lease contracts together with the present value of the net minimum lease payments are as follows:

Figures in million	Minimum payments	Present value of payments	Minimum payments	Present value of payments
	2009		2008
SA Rands
Within one year	25	–	25	–
After one year but not more than five years	117	18	110	9
More than five years	349	240	383	249
Total minimum lease payments	491	258	518	258
Amounts representing finance charges	(233)	–	(260)	–
Present value of minimum lease payments	258	258	258	258

Figures in million	2009	2008
SA Rands
Capital commitments
Acquisition of tangible assets
Contracted for	506	254
Not contracted for	4,676	5,201
Authorised by the directors	5,182	5,455
Allocated to:
Project capital
– within one year	244	1,646
– thereafter	1,082	658
	1,326	2,304
Stay-in-business capital
– within one year	3,284	2,742
– thereafter	572	409
	3,856	3,151
Purchase obligations
Contracted for
– within one year	95	87

Purchase obligations represent contractual obligations for the purchase of mining contract services, supplies, consumables, inventories, explosives and activated carbon.

To service these capital commitments, purchase obligations and other operational requirements, the company is dependent on existing cash resources, cash generated from operations and borrowing facilities.

Cash generated from operations is subject to operational, market and other risks. Distributions from operations may be subject to foreign investment, exchange control laws and regulations and the quantity of foreign exchange available in offshore countries. In addition, distributions from joint ventures are subject to the relevant board approval.

The credit facilities and other finance arrangements contain financial covenants and other similar undertakings. To the extent that external borrowings are required, the company’s covenant performance indicates that existing financing facilities will be available to meet the commitments detailed above. To the extent that any of the financing facilities mature in the near future, the company believes that sufficient measures are in place to ensure that these facilities can be refinanced.

Summary of contracted uranium sales as at 31 December 2009

Refer to group note 35 for a summary of contracted uranium sales.

Figures in million	Guarantees and contin- gencies	Liabilities included on the statement of financial position	Guarantees and contin- gencies	Liabilities included on the statement of financial position
	2009		2008
SA Rands
Contingent liabilities
Groundwater pollution – South Africa (1)	–	–	–	–
Deep groundwater pollution – South Africa (2)	–	–	–	–
Contingent asset
Insurance claim – Savuka Gold Mine (3)	–	–	–	–
Guarantees
Financial guarantees
Convertible bond (4)	5,446	400	9,455	–
Syndicated loan facility (5)	8,550	30	10,873	61
Term facility (6)	1,859	24	–	–
Oro Group (Pty) Limited (7)	100	–	100	–
Hedging guarantees (8)	3,293	–	9,335	–
Ashanti Treasury Services (9)	3,213	–	3,129	–
Geita Management Company (10)	1,071	–	1,142	–
AngloGold South America (11)	1,679	–	1,667	–
AngloGold USA Trading Company Cerro Vanguardia S.A. (11)	–	–	267	–
	25,211	454	35,968	61

Contingent liabilities

⁽¹⁾The company has identified groundwater contamination plumes at its Vaal River and West Wits operations in South Africa, which have occurred primarily as a result of seepage from mine residue stockpiles. Numerous scientific, technical and legal studies have been undertaken since 2002 to assist in determining the magnitude of the contamination and to find sustainable remediation solutions. The company has instituted processes to reduce future potential seepage and it has been demonstrated that Monitored Natural Attenuation (MNA) by the existing environment will contribute to improvement in some instances. Furthermore, literature reviews, field trials and base line modelling techniques suggest, but are not yet proven, that the use of phyto-technologies can address the soil and groundwater contamination at all South African operations. Subject to the completion of trials and the technology being a proven remediation technique, no reliable estimate can be made for the obligation.

⁽²⁾The company has identified a flooding and future pollution risk posed by deep groundwater in the Klerksdorp and Far West Rand gold fields. Various studies have been undertaken by AngloGold Ashanti since 1999. Due to the interconnected nature of mining operations, any proposed solution needs to be a combined one supported by all the mines located in these gold fields. As a result, the Department of Mineral Resource and affected mining companies are involved in the development of a “Regional Mine Closure Strategy”. In view of the limitation of current information for the accurate estimation of a liability, no reliable estimate can be made for the obligation.

Contingent asset

⁽³⁾On 22 May 2009 an insurable event occurred at Savuka Gold Mine. The amounts due from the insurers are subject to a formula based on lost production, average gold price and average exchange rates subject to various excesses and the production and the preparation of supportable data. The insurable amount is not yet determinable, but management expects that it is likely to exceed R297m and will be received during the first half of 2010.

Guarantees

⁽⁴⁾ The company has guaranteed all payments and other obligations of AngloGold Ashanti Holdings Finance plc regarding the convertible bonds amounting to R5,446m issued during 2009, with a maturity date of 22 May 2014 and a fixed coupon of 3.5% payable semi-annually. The company also guaranteed all payments and other obligations of AngloGold Ashanti Holdings plc regarding the convertible bonds amounting to R9,455m issued during 2004, which had a fixed coupon of 2.375% payable semi-annually and matured on 27 February 2009. The company’s obligations regarding the guarantees will be direct, unconditional and unsubordinated.

⁽⁵⁾ The company has guaranteed all payments and other obligations of the wholly owned subsidiaries AngloGold Ashanti Holdings plc, AngloGold Ashanti Australia Limited and AngloGold Ashanti USA Incorporated regarding the $1,150m syndicated loan facility.

⁽⁶⁾ The company has guaranteed all payments and other obligations of the wholly owned subsidiary AngloGold Ashanti Holdings plc regarding the $250m term facility.

⁽⁷⁾ The company has provided surety in favour of the lender in respect of gold loan facilities to wholly owned subsidiaries of Oro Group (Pty) Limited, an affiliate of the company. The company has a total maximum liability, in terms of the suretyships, of R100m (2008: R100m). The probability of the non-performance under the suretyships is considered minimal.

⁽⁸⁾ Included in amounts stated are NPSE accounted contracts fair valued at nil (2008: R6,326m).

⁽⁹⁾ The company, together with its wholly owned subsidiary, AngloGold Ashanti Holdings plc, has provided guarantees to several counterparty banks for the hedging commitment of its wholly owned subsidiary Ashanti Treasury Services Limited (ATS).

⁽¹⁰⁾ The company together with its wholly owned subsidiary, AngloGold Ashanti Holdings plc have issued hedging guarantees to several counterparty banks in which they have guaranteed the due performance by the Geita Management Company Limited (GMC) of its obligations under or pursuant to the hedging arrangements entered into by GMC, and to the payment of all money owing or incurred by GMC as and when due.

⁽¹¹⁾ The company has issued gold delivery guarantees to several counterparty banks in which it guarantees the due performance of its subsidiaries AngloGold USA Trading Company, AngloGold South America Limited and Cerro Vanguardia S.A. under their respective gold hedging agreements.

30 Financial risk management activities

In the normal course of its operations, the company is exposed to gold price, other commodity price, foreign exchange, interest rate, liquidity, equity price and credit risks. In order to manage these risks, the company may enter into transactions which make use of both on- and off-balance sheet derivatives. The company does not acquire, hold or issue derivatives for trading purposes. The company has developed a comprehensive risk management process to facilitate, control and monitor these risks. The board has approved and monitors this risk management process, inclusive of documented treasury policies, counterpart limits and controlling and reporting structures.

Controlling risk in the company

The Executive Committee and the Treasury Committee are responsible for risk management activities within the company. The Treasury Committee, chaired by the independent chairman of the AngloGold Ashanti Limited Audit and Corporate Governance Committee, comprising executive members and treasury executives, reviews and recommends to the Executive Committee treasury counterparts, limits, instruments and hedge strategies. The treasurer is responsible for managing gold and other commodity price, foreign exchange, interest rate, liquidity and credit risks. Within the treasury function, there is an independent risk function, which monitors adherence to treasury risk management policy and counterpart limits and provides regular and detailed management reports.

The financial risk management objectives of the company are defined as follows:

• safeguarding the company’s core earnings stream from its major assets through the effective control and management of gold price risk, other commodity risk, foreign exchange risk and interest rate risk;
  
• effective and efficient usage of credit facilities in both the short and long term through the adoption of reliable liquidity management planning and procedures;
  
• ensuring that investment and hedging transactions are undertaken with creditworthy counterparts; and
  
• ensuring that all contracts and agreements related to risk management activities are coordinated, consistent throughout the company and that they comply where necessary with all relevant regulatory and statutory requirements.
  

Gold price and foreign exchange risk

Gold price risk arises from the risk of an adverse effect on current or future earnings resulting from fluctuations in the price of gold. The gold market is predominately priced in US dollars which exposes the company to the risk that fluctuations in the SA rand/US dollar exchange rate may also have an adverse effect on current or future earnings. The company is also exposed to certain by-product commodity price risk.

A number of products, including derivatives, are used to manage the gold price and foreign exchange risks that arise out of the company’s core business activities. Forward sales contracts and call and put options are used by the company to manage these risks. At year-end, the volume of outstanding net forward sales contracts was 1,189kg (2008: net forward purchase contracts was 5,846kg). The volume of outstanding net call options sold was 44,742kg (2008: 60,761kg) and the volume of outstanding net put options sold was 15,381kg (2008: 11,182kg).

As the company does not enter into financial instruments for trading purposes, the risks inherent to financial instruments are always offset by the underlying risk being hedged. The company further manages such risks by ensuring that the level of hedge cover does not exceed expected sales in future periods, that the tenor of instruments does not exceed the life of mine and that no basis risk exists.

Cash flow hedges

The company’s cash flow hedges consist of commodity forward contracts that are used to protect against exposures to variability in future commodity cash flows. The amounts and timing of future cash flows are projected for each portfolio of financial assets and liabilities on the basis of their contractual terms and other relevant factors, including estimates of prepayments and defaults. The contractual cash flows across all portfolios over time form the basis for identifying gains and losses on the effective portions of derivatives designated as cash flow hedges of forecast transactions. Gains and losses are initially recognised directly in other comprehensive income and are transferred to earnings as gold income when the forecast transactions affect the income statement.

The cash flow hedge forecast transactions are expected to occur in the next year, in line with the maturity dates of the hedging instruments and will affect profit and loss simultaneously in an equal and opposite way.

The gains and losses on ineffective portions of such derivatives are recognised immediately in the income statement. During the year to 31 December 2009, a loss of R22m (2008: R20m) was recognised on non-hedge derivatives and other commodities in the income statement due to hedge ineffectiveness.

Non-hedge derivatives

Loss on non-hedge derivatives and other commodity contracts is summarised as follows:

Figures in million	2009	2008
	SA Rands
Loss on non-hedge derivatives and other commodity contracts	(4,090)	(1,743)
Unrealised gain on other commodity physical borrowings	–	74
Provision reversed for loss on future deliveries and other commodities	–	37
Loss on non-hedge derivatives and other commodity contracts per the income statement	(4,090)	(1,632)

Loss on non-hedge derivatives and other commodity contracts was R4,090m in 2009 compared to a loss of R1,632m in the previous year. The loss is as a result of the revaluation of non-hedge derivatives resulting from changes in the prevailing spot gold price, exchange rates, interest rates, volatilities and credit risk compared to the previous year. The realised loss as a result of accelerated settlement of non-hedge derivatives was nil in 2009 (2008: R3,882m) and was due to the hedge buy-backs that were effected during the prior year.

Net open hedge position as at 31 December 2009

The marked-to-market value of derivatives, irrespective of accounting designation, making up the hedge position was R6.98bn as at 31 December 2009 (as at 31 December 2008: R8.03bn). These values were based on a gold price of $1,102 per ounce, an exchange rate of $1 = R7.4350 and the prevailing market interest rates and volatilities at 31 December 2009. The values as at 31 December 2008 were based on a gold price of $872 per ounce, an exchange rate of $1 = R9.4550 and the market interest rates and volatilities prevailing at that date.

The table below reflects the hedge position as at 31 December 2009.

Summary: All open contracts in the company’s commodity hedge position as at 31 December 2009

Year	2010	2011	2012	2013	2014	Total	2008
US Dollar/Gold
Forward contracts
Amount (kg)	(2,684) (1)	249 (2)	1,104	1,882	1,882	2,433 (2)	(3,980) (1)
$ /oz	$1,366 (1)	$36 (2)	$401	$510	$520	$532 (2)	$657 (1)
Put options sold
Amount (kg)	4,199	3,515	2,659	1,882	1,882	14,137	11,182
$ /oz	$1,023	$568	$538	$440	$450	$665	$519
Call options sold
Amount (kg)	9,176	15,863	5,676	6,392	6,391	43,498	60,761
$ /oz	$484	$490	$606	$546	$559	$522	$458
Rand/Gold
Forward contracts
Amount (kg)	(1,244) (1)					(1,244) (1)	(1,866) (1)
R/kg	R232,225 (1)					R232,225 (1)	R157,213 (1)
Put options sold
Amount (kg)	1,244					1,244
R/kg	R240,326					R240,326
Call options sold
Amount (kg)	1,244					1,244
R/kg	R262,832					R262,832
Total net gold
Delta (kg) (3)	(3,664)	(15,519)	(6,227)	(7,952)	(7,873)	(41,235)	(48,495)
Delta (oz) (3)	(117,792)	(498,930)	(200,211)	(255,665)	(253,124)	(1,325,722)	(1,559,142)

The open delta hedge position of the company at 31 December 2009 was 1.33Moz or 41t (31 December 2008: 1.56Moz or 48t).

⁽¹⁾Represents a net long gold position and net short US dollars/rands position, resulting from both forward sales and purchases for the period.

⁽²⁾Represents a net short gold position and net short US dollars position, resulting from both forward sales and purchases for the period.

⁽³⁾The delta of the hedge position indicated above, is the equivalent gold position that would have the same marked-to-market sensitivity for a small change in the gold price. This is calculated using the Black-Scholes option formula with the ruling market prices, interest rates and volatilities as at 31 December 2009.

Summary: All open contracts in the company’s currency hedge position as at 31 December 2009

Year	2010–2014	2008
Rand/US Dollar (000)
Put options purchased
Amount ($)	–	30,000
R per $	–	R11.56
Put options sold
Amount ($)	–	50,000
R per $	–	R9.52
Call options sold
Amount ($)	–	50,000
R per $	–	R11.61

The mix of hedging instruments, the volume of production hedged and the tenor of the hedging book is continually reviewed in the light of changes in operational forecasts, market conditions and the company’s hedging policy.

Forward sales contracts require the future delivery of the underlying at a specified price.

A put option gives the put buyer the right, but not the obligation, to sell the underlying to the put seller at a predetermined price on a predetermined date.

A call option gives the call buyer the right, but not the obligation, to buy the underlying from the call seller at a predetermined price on a predetermined date.

Interest rate and liquidity risk

Refer note 36 in the group financial statements.

The following are the contractual maturities of financial liabilities, including interest payments.

Non-derivative financial liabilities

		Million	Within one year Effective rate %	Million	Between one and two years Effective rate %	Million	Between two and five years Effective rate %	Million	After five years Effective rate %
2009	ZAR
Financial guarantees		10,409	1.6	–		5,446	3.5	100
Borrowings		26	9.8	26	9.8	91	9.8	350	9.8
Trade and other payables		1,420		–		–		–
2008	ZAR
Financial guarantees		9,455	2.4	10,873	2.6	–		100
Borrowings		25	10.7	25	9.9	84	9.8	383	9.8
Trade and other payables		1,242		–		–		–

The following are the undiscounted forecast principal cash flows arising from all on-balance sheet derivative contracts (cash flow hedges and non-hedges).

Derivative financial assets and (liabilities)

Figures in million	Within one year	Between one and two years	Between two and five years	After five years	Total
SA Rands
At 31 December 2009
Cash inflows from assets	658	217	93	–	968
Cash outflows from liabilities	(2,172)	(2,694)	(3,746)	–	(8,612)
Net cash outflows	(1,514)	(2,477)	(3,653)	–	(7,644)
At 31 December 2008
Cash inflows from assets	1,735	356	130	–	2,221
Cash outflows from liabilities	(1,052)	(481)	(2,844)	(1,029)	(5,406)
Net cash inflows (outflows)	683	(125)	(2,714)	(1,029)	(3,185)

Credit risk

Refer note 36 in the group financial statements.

The combined maximum credit risk exposure of the company is as follows:

Figures in million	2009	2008
	SA Rands
Foreign exchange option contracts	–	52
Forward sale commodity contracts	944	2,115
Total derivatives	944	2,167
Other investments (note 12)	14	14
Other non-current assets	7	10
Trade and other receivables	302	430
Cash restricted for use	8	8
Cash and cash equivalents (note 18)	1,720	1,458
Total financial assets	2,995	4,087
Financial guarantees	15,955	20,428
Hedging guarantees	9,256	15,540
Total	28,206	40,055

The company has trade and other receivables that are past due totalling R153m (2008: R130m) and an impairment totalling R79m (2008: R12m). Trade and other receivables mainly arise due to intergroup transactions. The principal debtors continue to be in a sound financial position. No other financial assets are past due but not impaired.

Fair value of financial instruments

The estimated fair value of financial instruments are determined at discrete points in time based on relevant market information. The estimated fair value of the companies’ financial instruments as at 31 December 2009 are as follows:

Type of instrument

Figures in million	Carrying amount	Fair value	Carrying amount	Fair value
	2009		2008
SA Rands
Financial assets
Other investments (note 12)	16	14	16	14
Other non-current assets	7	8	10	10
Trade and other receivables	302	302	430	430
Cash restricted for use	8	8	8	8
Cash and cash equivalents (note 18)	1,720	1,720	1,458	1,458
Derivatives (4)	944	944	2,167	2,167
Financial liabilities
Borrowings (note 21)	258	258	255	255
Trade and other payables	1,737	1,737	1,242	1,242
Derivatives (4)	7,948	7,948	5,419	10,467

⁽⁴⁾Carrying amounts represent on-balance sheet derivatives and fair value includes off-balance sheet normal sale exempted contracts in 2008.

The amounts in the tables above do not necessarily agree with the totals in the notes as only financial assets and liabilities are shown.

The following methods and assumptions were used to estimate the fair value of each class of financial instrument:

Cash restricted for use, cash and cash equivalents and trade and other payables
The carrying amounts approximate fair value because of the short-term duration of these instruments.

Trade and other receivables
The fair value of the non-current portion of trade and other receivables has been calculated using market interest rates.

Investments and other non-current assets
Listed equity investments classified as available for sale are carried at fair value while fixed income investments and other non-current assets are carried at amortised cost. The fair value of fixed income investments and other non-current assets has been calculated using market interest rates. The unlisted equity investment is carried at cost. There is no active market for the unlisted equity investment and fair value cannot be reliably measured.

Borrowings
The interest rate on borrowings is reset on a short-term floating rate basis, and accordingly the carrying amount is considered to approximate fair value.

Derivatives
The fair value of derivatives are estimated based on ruling market prices, volatilities, interest rates and credit risk as at 31 December 2009 and includes all derivatives carried on the statement of financial position. In 2008, the fair value for derivatives included off-balance sheet normal sale exempted gold contracts, which were not carried on the statement of financial position and were excluded from the carrying amount.

The company uses the Black-Scholes option pricing formula to value option contracts. One of the inputs into the model is the level of volatility. These volatility levels are themselves not exchange traded. The company uses volatility inputs supplied by leading market participants (international banks).

Derivative assets (liabilities) comprise the following:

	Assets				Liabilities
	Normal sale exempted	Cash flow hedge accounted	Non- hedge accounted	Total	Normal sale exempted	Cash flow hedge accounted	Non- hedge accounted	Total
Figures in million	2009				2009
SA Rands
Commodity option contracts	–	–	–	–	–	–	(6,127)	(6,127)
Forward sale commodity
contracts	–	–	944	944	–	(276)	(1,545)	(1,821)
Total derivatives	–	–	944	944	–	(276)	(7,672)	(7,948)
	2008				2008
Commodity option contracts	–	–	–	–	(5,048)(5)	–	(3,224)	(8,272)
Foreign exchange option contracts	–	–	52	52	–	–	(38)	(38)
Forward sale commodity
contracts	–	–	2,115	2,115	–	(909)	(1,248)	(2,157)
Total derivatives	–	–	2,167	2,167	(5,048)	(909)	(4,510)	(10,467)

The derivative assets (liabilities) are stated after taking into consideration the impact of credit risk adjustment totalling R393m at 31 December 2009 (2008: R549m).

⁽⁵⁾Deliverable call options sold.

Fair value of financial instruments
The company uses the following hierarchy for determining and disclosing the fair value of financial instruments:

Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities;
Level 2: inputs other than quoted prices included in level 1 that are observable for the asset or liability, either directly (as prices) or indirectly (derived from prices); and
Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).

The following table sets out the company’s financial assets and liabilities measured at fair value by level within the fair value hierarchy as at 31 December.

Type of instrument

	Level 1	Level 2	Level 3	Total	Level 1	Level 2	Level 3	Total
Figures in million	2009				2008
SA Rands
Assets measured at fair value
Financial assets at fair value through profit or loss
Foreign exchange option contracts – non-hedged	–	–	–	–	–	52	–	52
Forward sale commodity contracts – non-hedged	–	944	–	944	–	2,115	–	2,115
Liabilities measured at fair value
Financial liabilities at fair value through profit or loss
Commodity option contracts – non-hedged (6)	–	6,127	–	6,127	–	8,272	–	8,272
Foreign exchange option contracts – non-hedged	–	–	–	–	–	38	–	38
Forward sale commodity contracts – non-hedged	–	1,545	–	1,545	–	1,248	–	1,248
Cash flow hedges
Forward sale commodity contracts – cash flow hedged	–	276	–	276	–	909	–	909

⁽⁶⁾Fair value of financial instrument liabilities includes off-balance sheet normal sale exempted contracts in 2008.

The amounts in the tables above do not necessarily agree with the totals in the notes as only financial assets and liabilities are show

Sensitivity analysis

Derivatives
A principal part of the company’s management of risk is to monitor the sensitivity of derivative positions in the hedge book to changes in the underlying factors, viz. commodity price, foreign exchange rate and interest rates under varying scenarios.

The following table discloses the approximate sensitivities of the US dollars marked-to-market value of the hedge book to key underlying factors at 31 December 2009 (actual changes in the timing and amount of the following variables may differ from the assumed changes below).

The table sets out the impact on the marked-to-market value of the hedge book of an incremental parallel fall or rise in the respective yield curves at the beginning of each month, quarter or year (as is appropriate) from 1 January 2010. The yield curves match the maturity dates of the individual derivative positions in the hedge book. These figures incorporate the impact of any option features in the underlying exposures.

	Change in underlying factor (+)	Cash flow hedge accounted (million)	Non-hedge accounted (million)	Total change in fair value (million)	Total change in fair value (million)
SA Rands	2009				2008
Currency (R/$)	Spot(+R1)	–	12	12	7
Gold price ($/oz)	Spot(+$250)	(93)	(2,492)	(2,585)	(2,964) (7)
ZAR interest rate (%)	IR(+1.5%)	1	–	1	(1)

	Change in underlying factor (-)	Cash flow hedge accounted (million)	Non-hedge accounted (million)	Total change in fair value (million)	Total change in fair value (million)
SA Rands	2009				2008
Currency (R/$)	Spot(-R1)	–	(42)	(42)	(26)
Gold price ($/oz)	Spot(-$250)	93	2,170	2,263	2,744 (7)
ZAR interest rate (%)	IR(-1.5%)	(1)	–	(1)	1

IR represents interest rate.

⁽⁷⁾Change in gold price (+) of spot (+$200) and change in gold price (-) of spot (-$200).

Interest rate risk on other financial assets and liabilities (excluding derivatives)
Refer note 36 in the group financial statements.

31 Capital management

Capital is managed on a group basis only and not a company basis. Refer to note 37 in the group financial statements.