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Segment report

 

Segment report

Financial summary - R million

    South Africa   Ghana   Peru   Australia   Corporate      
            South           Cerro   St Ives/   and   Group  
    KDC   Beatrix   Deep1   Tarkwa   Damang   Corona   Agnew   other2   Consolidation  
  Income statement for the 6 month period ended 31 December 2010                          
  Revenue 5,814.5   1,849.7   1,343.4   3,342.4   1,085.7   1,903.7   2,968.7   -   18,308.1  
  Operating costs (3,809.7)   (1,233.5)   (996.0)   (1,466.6)   (527.9)   (552.9)   (1,634.4)   -   (10,221.0)  
  Gold inventory change -   -   -   (20.2)   3.8   11.4   78.6   -   73.6  
  Operating profits 2,004.8   616.2   347.4   1,855.6   561.6   1,362.2   1,412.9   -   8,160.7  
  Amortisation and depreciation (874.6)   (263.1)   (269.9)   (310.4)   (90.4)   (207.5)   (682.4)   (77.7)   (2,776.0)  
  Net operating profit/(loss) 1,130.2   353.1   77.5   1,545.2   471.2   1,154.7   730.5   (77.7)   5,384.7  
  Other expenditure (1,093.2)   (351.7)   (158.9)   (82.5)   (42.9)   (51.0)   (45.9)   (1,536.6)3   (3,362.7)  
  Investment income 42.5   12.3   7.1   4.3   -   -   14.1   11.6   91.9  
  Finance expense (12.7)   (1.5)   (11.2)   (4.4)   (0.8)   (35.4)   (8.3)   (175.2)   (249.5)  
  Royalties (84.7)   (9.2)   (6.7)   (62.2)   (22.4)   (52.2)   (72.0)   -   (309.4)  
  Current taxation (146.3)   (2.7)   -   (391.1)   (133.0)   (336.4)   -   (129.4)   (1,138.9)  
  Deferred taxation 240.3   (56.2)   (4.3)   (41.0)   8.9   (13.6)   (183.8)   (3.5)   (53.2)  
 
Profit/(loss) for the period
76.1   (55.9)   (96.5)   968.3   281.0   666.1   434.6   (1,910.8)   362.9  
  Profit/(loss) attributable to:                                    
     - Owners of the parent 76.1   (55.9)   (96.5)   688.5   199.8   537.5   434.6   (1,860.4)   (76.3)  
     - Non-controlling interest holders -   -   -   279.8   81.2   128.6   -   (50.4)   439.2  
  bALANCe SheeT as at 31 December 2010                        
  Total assets (excluding                                    
  deferred taxation) 13,080.5   1,603.4   854.3   8,054.8   1,687.8   7,176.3   9,101.0   29,503.1   71,061.2  
  Total liabilities (excluding                                    
  deferred taxation) 2,950.5   (627.8)   455.5   1,278.3   475.7   1,947.7   1,260.9   9,636.5   17,377.3  
  Net deferred taxation liabilities 3,548.1   870.1   4.3   1,253.6   106.9   237.8   1,263.8   (223.2)   7,061.4  
 
Capital expenditure
1,265.8   304.6   1,003.2   832.3   401.7   224.0   574.8   33.4   4,639.8  

The above is a geograhical analysis presented by location of assets.

The Group is primarily involved in gold mining, exploration and related activities. Activities are conducted and investments held both inside and outside South Africa. The segment results have been prepared and presented based on management’s reporting format. The Group’s gold mining operations are managed and internally reported based on the following geographical areas: in South Africa the KDC division, the Beatrix division and the South Deep mine, in Ghana the Tarkwa and Damang mines, in Australia, St Ives and Agnew mines and in Peru, Cerro Corona. The Group also has exploration interests which are included in the “Corporate and other” segment. (Refer to accounting policies on segment reporting on page 246).

1 The income statement and balance sheet of South Deep is that of the operating mine and does not include any of the adjustments made in respect of the purchase price allocation. South Deep Gold mine, being an unincorporated joint venture, is not liable for taxation. Taxation included in South Deep is indicative, as tax is provided in the holding company at a rate of 40%.
2 “Corporate and other” represents the items to reconcile segment data to consolidated financial statement totals. Included in “Corporate and other” is goodwill relating to the acquisition of South Deep. This does not represent a separate segment as it does not generate revenue.
3 Other expenditure “Corporate and other” comprise share-based payments of R1,045.0 million, exploration expenses of R325.0 million, feasibility and evaluation costs of R66.4 million, share of losses of associate after taxation of R206.6 million, loss on disposal of investments of R2.5 million, and the balance of R108.9 million income consists mainly of corporate related cost recoveries.

Financial summary - R million

    South Africa   Ghana   Peru   Australia   Corporate      
                South           Cerro   St Ives/   and   Group  
    Driefontein   Kloof   Beatrix   Deep1   Tarkwa   Damang   Corona   Agnew   other2   Consolidation  
  Income statement for the year ended 30 June 2010                          
  Revenue 5,843.6   4,648.1   3,218.7   2,188.5   5,988.9   1,719.6   3,118.6   4,839.3   -   31,565.3  
  Operating costs (3,832.1)   (3,424.3)   (2,272.9)   (1,674.6)   (2,933.4)   (990.5)   (1,024.2)   (3,018.3)   -   (19,170.3)  
  Gold inventory change -   -   -   -   86.6   (15.9)   10.2   97.3   -   178.2  
  Operating profits 2,011.5   1,223.8   945.8   513.9   3,142.1   713.2   2,104.6   1,918.3   -   12,573.2  
  Amortisation and depreciation (621.7)   (800.3)   (541.6)   (452.5)   (841.7)   (130.0)   (419.1)   (885.4)   (145.0)   (4,837.3)  
  Net operating profit/(loss) 1,389.8   423.5   404.2   61.4   2,300.4   583.2   1,685.5   1,032.9   (145.0)   7,735.9  
  Other (expenditure)/income (194.1)   (180.1)   (61.4)   (148.4)   (81.4)   (28.8)   (361.9)   (51.8)   715.73   (392.2)  
  Investment income 119.5   80.7   15.9   4.9   2.4   4.1   -   24.8   52.4   304.7  
  Finance expense (16.8)   (6.8)   (3.2)   (44.2)   (3.5)   (0.4)   (41.9)   (17.1)   (358.8)   (492.7)  
  Royalties (43.6)   (8.2)   (5.4)   (4.0)   (220.1)   (62.5)   (78.2)   (121.0)   -   (542.9)  
  Current taxation (203.4)   (20.1)   (2.1)   -   (312.7)   (152.0)   (310.2)   (4.3)   (226.4)   (1,231.2)  
  Deferred taxation (200.9)   (116.5)   (141.1)   49.3   (260.7)   4.1   (204.6)   (263.0)   26.3   (1,107.1)  
 
Profit/(loss) for the year
850.5   172.5   206.9   (81.0)   1,424.5   347.7   688.7   600.5   64.2   4,274.5  
  Profit/(loss) attributable to:                                        
     - Ordinary shareholders 850.5   172.5   206.9   (81.0)   1,012.8   247.2   555.8   600.5   66.2   3,631.4  
     - Non-controlling interest holders -   -   -   -   411.7   100.5   132.9   -   (2.0)   643.1  
  bALANCe SheeT as at 30 June 2010                          
  Total assets (excluding                                        
  deferred taxation) 8,148.8   5,005.9   1,063.3   998.9   8,016.7   1,343.0   6,706.7   8,195.2   28,861.7   68,340.2  
  Total liabilities (excluding                                        
  deferred taxation) 2,325.6   1,081.3   (870.0)   596.9   1,094.6   278.0   1,650.2   1,195.5   8,396.5   15,748.6  
  Deferred taxation 1,995.1   1,793.3   813.9   -   1,362.4   129.3   252.3   1,046.2   (249.8)   7,142.7  
 
Capital expenditure
1,139.6   1,104.4   650.6   1,613.3   1,126.3   226.1   648.8   1,198.8   34.4   7,742.3  

The above is a geograhical analysis presented by location of assets.

The Group is primarily involved in gold mining, exploration and related activities. Activities are conducted and investments held both inside and outside South Africa. The segment results have been prepared and presented based on management’s reporting format. The Group’s gold mining operations are managed and internally reported based on the following geographical areas: in South Africa the Driefontein division, the Kloof division, the Beatrix division and the South Deep mine, in Ghana the Tarkwa and Damang Mines, in Australia, St Ives and Agnew mines and in Peru, Cerro Corona. The Group also has exploration interests which are included in the “Corporate and other” segment. (Refer to accounting policies on segment reporting on page 246).

1 The income statement and balance sheet of South Deep is that of the operating mine and does not include any of the adjustments made in respect of the purchase price allocation. South Deep Gold mine, being an unincorporated joint venture, is not liable for taxation. Taxation included in South Deep is indicative, as tax is provided in the holding company at a rate of 40%.
2 “Corporate and other” represents the items to reconcile segment data to consolidated financial statement totals. Included in “Corporate and other” is goodwill relating to the acquisition of South Deep. This does not represent a separate segment as it does not generate revenue.
3 Other expenditure “Corporate and other” comprise share-based payments of R184.1 million exploration expenses of R577.0 million, share of gains of associate after taxation of R118.3 million, impairment of investments of R257.8 million, profit on disposal of investments of R846.9m, realised gain on financial instruments (Eldorado top-up shares) of R402.1 million and the balance of R367.3 million income consists mainly of corporate related cost recoveries.

Financial summary - US$ million

    South Africa   Ghana   Peru   Australia   Corporate      
            South           Cerro   St Ives/   and   Group  
    KDC   Beatrix   Deep1   Tarkwa   Damang   Corona   Agnew   other2   Consolidation  
  Income statement for the 6 month period ended 31 December 2010                      
  Revenue 814.3   259.1   188.2   468.1   152.1   266.6   415.8   -   2,564.2  
  Operating costs (533.6)   (172.8)   (139.5)   (205.4)   (73.9)   (77.4)   (228.9)   -   (1,431.5)  
  Gold inventory change -   -   -   (2.8)   0.5   1.6   11.0   -   10.3  
  Operating profits 280.7   86.3   48.7   259.9   78.7   190.8   197.9   -   1,143.0  
  Amortisation and depreciation (122.5)   (36.8)   (37.8)   (43.5)   (12.7)   (29.1)   (95.6)   (10.8)   (388.8)  
  Net operating profit/(loss) 158.2   49.5   10.9   216.4   66.0   161.7   102.3   (10.8)   754.2  
  Other expenditure (153.1)   (49.3)   (22.3)   (11.6)   (6.0)   (7.1)   (6.4)   (215.2)3   (471.0)  
  Investment income 6.0   1.7   1.0   0.6   0.1   -   2.0   1.5   12.9  
  Finance expense (1.8)   (0.2)   (1.6)   (0.6)   (0.1)   (5.0)   (1.2)   (24.5)   (35.0)  
  Royalties (11.8)   (1.3)   (0.9)   (8.7)   (3.1)   (7.3)   (10.2)   0.0   (43.3)  
  Current taxation (20.5)   (0.4)   -   (54.8)   (18.6)   (47.1)   -   (18.1)   (159.5)  
  Deferred taxation 33.7   (7.9)   (0.6)   (5.7)   1.2   (1.9)   (25.7)   (0.6)   (7.5)  
 
Profit/(loss) for the period
10.7   (7.9)   (13.5)   135.6   39.5   93.3   60.8   (267.7)   50.8  
  Profit/(loss) attributable to:                                    
  - Owners of the parent 10.7   (7.9)   (13.5)   96.4   28.1   75.3   60.8   (260.6)   (10.7)  
  - Non-controlling interest holders -   -   -   39.2   11.4   18.0   -   (7.1)   61.5  
  bALANCe SheeT as at 31 December 2010                      
  Total assets (excluding                                    
  deferred taxation) 1,937.9   237.5   126.6   1,193.3   250.0   1,063.2   1,348.3   4,370.9   10,527.7  
  Total liabilities (excluding                                    
  deferred taxation) 437.1   (93.0)   67.5   189.4   70.5   288.5   186.8   1,427.7   2,574.5  
  Net deferred taxation liabilities 525.6   128.9   0.6   185.7   15.8   35.2   187.2   (33.1)   1,046.1  
 
Capital expenditure
177.3   42.7   140.5   116.6   56.3   31.4   80.5   4.7   649.8  

The above is a geograhical analysis presented by location of assets.

The Group is primarily involved in gold mining, exploration and related activities. Activities are conducted and investments held both inside and outside South Africa. The segment results have been prepared and presented based on management’s reporting format. The Group’s gold mining operations are managed and internally reported based on the following geographical areas: in South Africa the KDC division, the Beatrix division and the South Deep mine, in Ghana the Tarkwa and Damang mines, in Australia, St Ives and Agnes mines and in Peru, Cerro Corona. The Group also has exploration interests which are included in the “Corporate and other” segment. (Refer to accounting policies on segment reporting on page 246).

US dollar figures may not add as they are rounded independently.

Year end exchange rate of R6.75/US$.

Average exchange rate for the six months to December 2010 of R7.14/US$.

1 The income statement and balance sheet of South Deep is that of the operating mine and does not include any of the adjustments made in respect of the purchase price allocation. South Deep Gold mine, being an unincorporated joint venture, is not liable for taxation. Taxation included in South Deep is indicative, as tax is provided in the holding company at a rate of 40%.
2 “Corporate and other” represents the items to reconcile segment data to consolidated financial statement totals. Included in “Corporate and other” is goodwill relating to the acquisition of South Deep. This does not represent a separate segment as it does not generate revenue.
3 Other expenditure “Corporate and other” comprise share-based payments of US$146.4 million, exploration expenses of US$45.5 million, feasibility and evaluation costs of US$9.3 million, share of losses of associate after taxation of US$28.9 million, loss on disposal of investments of US$0.4 million and the balance of US$15.3 million income consists mainly of corporate related cost recoveries.

Financial summary - US$ million

    South Africa   Ghana   Peru   Australia   Corporate      
                South           Cerro   St Ives/   and   Group  
    Driefontein   Kloof   Beatrix   Deep1   Tarkwa   Damang   Corona   Agnew   other2   Consolidation  
  Income statement for the year ended 30 June 2010                          
  Revenue 770.9   613.2   424.7   288.7   790.1   226.9   411.4   638.4   -   4,164.3  
  Operating costs (505.6)   (451.8)   (299.9)   (220.9)   (387.0)   (130.7)   (135.0)   (398.2)   -   (2,529.1)  
  Gold inventory change -   -   -   -   11.4   (2.1)   1.3   12.9   -   23.5  
  Operating profits 265.3   161.4   124.8   67.8   414.5   94.1   277.7   253.1   -   1,658.7  
  Amortisation and depreciation (82.0)   (105.6)   (71.5)   (59.7)   (111.0)   (17.2)   (55.3)   (116.8)   (19.1)   (638.2)  
  Net operating profit/(loss) 183.3   55.8   53.3   8.1   303.5   76.9   222.4   136.3   (19.1)   1,020.5  
  Other (expenditure)/income (25.6)   (23.8)   (8.1)   (19.6)   (10.7)   (3.8)   (47.7)   (6.8)   94.33   (51.8)  
  Investment income 15.8   10.6   2.1   0.6   0.3   0.6   -   3.3   6.9   40.2  
  Finance expense (2.2)   (0.9)   (0.4)   (5.8)   (0.5)   (0.1)   (5.5)   (2.3)   (47.3)   (65.0)  
  Royalties (5.8)   (1.1)   (0.7)   (0.5)   (29.0)   (8.2)   (10.3)   (16.0)   -   (71.6)  
  Current taxation (26.8)   (2.6)   (0.3)   -   (41.3)   (20.1)   (40.9)   (0.5)   (29.9)   (162.4)  
  Deferred taxation (26.5)   (15.4)   (18.6)   6.5   (34.4)   0.5   (27.0)   (34.7)   3.5   (146.1)  
 
Profit/(loss) for the year
112.2   22.6   27.3   (10.7)   187.9   45.8   91.0   79.3   8.4   563.8  
  Profit/(loss) attributable to:                                        
  - Ordinary shareholders 112.2   22.6   27.3   (10.7)   133.6   32.5   73.5   79.3   8.7   479.0  
  - Non-controlling interest holders -   -   -   -   54.3   13.3   17.5   -   (0.3)   84.8  
  bALANCe SheeT as at 30 June 2010                            
  Total assets (excluding                                        
  deferred taxation) 1,076.5   661.3   140.5   132.0   1,059.0   177.4   886.0   1,082.6   3,812.6   9,027.8  
  Total liabilities (excluding                                        
  deferred taxation) 307.2   142.8   (114.9)   78.9   144.6   36.7   218.0   157.9   1,109.2   2,080.4  
  Deferred taxation 263.6   236.9   107.5   -   180.0   17.1   33.3   138.2   (33.0)   943.6  
 
Capital expenditure
150.3   145.7   85.8   212.8   148.6   29.8   85.6   158.2   4.5   1,021.4  

The above is a geograhical analysis presented by location of assets.

The Group is primarily involved in gold mining, exploration and related activities. Activities are conducted and investments held both inside and outside South Africa. The segment results have been prepared and presented based on management’s reporting format. The Group’s gold mining operations are managed and internally reported based on the following geographical areas: in South Africa the Driefontein division, the Kloof division, the Beatrix division and the South Deep mine, in Ghana the Tarkwa and Damang mines, in Australia, St Ives and Agnes mines and in Peru, Cerro Corona. The Group also has exploration interests which are included in the “Corporate and other” segment. (Refer to accounting policies on segment reporting on page 246).

US dollar figures may not add as they are rounded independently.

Year-end exchange rate of R7.57/US$.

Average exchange rate for the year ended 30 June 2010: R7.58/US$.

1 The income statement and Balance sheet of South Deep is that of the operating mine and does not include any of the adjustments made in respect of the purchase price allocation. South Deep Gold mine, being an unincorporated joint venture, is not liable for taxation. Taxation included in South Deep is indicative, as tax is provided in the holding company at a rate of 40%.
2 “Corporate and other” represents the items to reconcile segment data to consolidated financial statement totals. Included in “Corporate and other” is goodwill relating to the acquisition of South Deep. This does not represent a separate segment as it does not generate revenue.
3 Other expenditure “Corporate and other” comprise share-based payments of US$24.3 million, exploration expenses of US$76.1, share of gains of associate after taxation of US$15.6 million, impairment of investments of US$34.0 million, profit on disposal of investments of US$111.8 million, realised gain on financial instruments (Eldorado top-up shares) of US$53.0 million and the balance of US$48.4 income consists mainly of corporate related cost recoveries.