Edgar Filing: ANGLOGOLD ASHANTI LTD

Page 1

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Amendment No. 1

FORM 6-K/A

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 or 15d-16 OF

THE SECURITIES EXCHANGE ACT OF 1934

Report on Form 6-K dated July 14, 2005

This Report on Form 6-K shall be incorporated by reference in

our Registration Statement on Form F-3 as amended (File No. 333-101891) and our Registration Statement on

Form F-3 (File No. 333-114857) to the extent not superseded by documents or reports subsequently

filed by us under the Securities Act of 1933 or the Securities Exchange Act of 1934, in each case as amended

AngloGold Ashanti Limited____

(Name of Registrant)

11 Diagonal Street

Johannesburg, 2001

(P O Box 62117)

Marshalltown, 2107

South Africa

(Address of Principal Executive Offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form
40-F:

Form 20-F: Form 40-F:

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T
Rule 101(b)(1):

Yes:

No:

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T
Rule 101(b)(7):

Yes:

No:

Indicate by check mark whether the registrant by furnishing the information contained in this form is also
thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities
Exchange Act of 1934.

Yes:

No:

Enclosures:

Restatement of unaudited condensed consolidated financial statements as of June 30, 2004
and December 31, 2003 and for each of the six month periods ended June 30, 2004 and 2003,
prepared in accordance with U.S. GAAP, and related management’s discussion and analysis
of financial condition and results of operations.

Form 6-K/A Explanatory note

Since this date, AngloGold Ashanti has identified various events that will result in adjustments to the financial
information furnished on the Form 6-K which are set out below:

•

The company indicated that it had written off goodwill of $182 million resulting from the Business Combination
between AngloGold and Ashanti due to the decline in the share price from the announcement date to the
completion date. The terms of this transaction were first announced on October 15, 2003 and the transaction
was concluded on April 26, 2004. After further consideration and assessment of accounting guidance in
SFAS142, AngloGold Ashanti reversed this write off. As at December 31, 2004, AngloGold Ashanti performed
its annual goodwill impairment test and concluded that no write down is required, primarily due to the
subsequent increase in gold price.

•

The company reported the Acquired Hedge Creditor from Ashanti on the basis in which the take-on fair value
of contracts designated as being Normal Sale Exempted, are netted off against mining assets. After further
consideration and assessment of accounting guidance in FIN39, the company changed its accounting
treatment to report the Acquired Hedge Creditor and mining assets on a gross basis.

•

The company reported its investments in joint ventures in which it had joint control under the proportionate
consolidation method. After further consideration and assessment of the accounting guidance in APB 18 and
subsequent consensus opinions issued by the Emerging Issues Task Force of the Financial Accounting
Standards Board, AngloGold Ashanti has determined that these investments should be reported in terms of
the equity accounting method.

In total, the restatements above increased Net income by $179 million, increased Total assets, current liabilities
and non current liabilities by $443 million, $19 million and $245 million, respectively, for the six months ended
June 30, 2004 and as of June 30, 2004. The restatements had no impact on Net income previously reported for the
six months ended June 30, 2003 and decreased Total assets by $236 million as of December 31, 2003.
Consequently, related per share data and cash flow as previously stated were also impacted by the restatement.

For information regarding this restatement and the effects on significant financial statement line items, see Note R,
“Restatement of previously issued financial statements,” to the condensed consolidated financial statements.

No attempt has been made in this amended Form 6-K to modify or update other disclosures presented in the
original Form 6-K being amended, except as required to reflect the effects of the restatement. This Form 6-K/A
does not reflect events occurring after the filing of the original Form 6-K it amends. Information not affected by the
restatement is unchanged and reflects the disclosure made at the time of the original submission of the Form 6-K to
the SEC on July 30, 2004. Accordingly, this Form 6-K/A should be read in conjunction with our filings with and
submissions to the SEC subsequent to the filing of the original Form 6-K being amended, including any
amendments to those filings or submissions. The following items also have been amended: Form 6-K containing
unaudited condensed consolidated financial information as of September 30, 2004 and for the nine month period
ended September 30, 2004, prepared in accordance with U.S. GAAP, and review of financial and operating
performance, furnished to the SEC on October 29, 2004.

ANGLOGOLD ASHANTI LIMITED
CONDENSED CONSOLIDATED INCOME STATEMENT

Prepared in accordance with US GAAP

Six months ended June 30,

2004

(unaudited)

2003

(unaudited)

(As restated)

(1)

(As restated)

(1)

(in US Dollars, millions, except for share data)

Sales and other income

955 844

Product sales

926 826

Interest, dividends and other

Cost and expenses

961 701

Production costs

590 535

Exploration costs

20 18

Related party transactions

General and administrative

Royalties

8 6

Market development costs

Depreciation, depletion and amortization

182

121

Impairment of assets (see note G)

Interest expense

30 9

Accretion expense

3 3

Employment severance costs

Profit on sale of assets (see note H)

(4)

(7)

Non-hedge derivative loss/(gains)

(38)

(Loss)/income before equity income and income tax

(6) 143

Equity income in affiliates

Income before income tax provision

7 179

Deferred income and mining tax benefit/(expensed)

(70)

Income before minority interest

22 109

Minority interest

(9) (9)

Income before cumulative effect of accounting change

13 100

Cumulative effect of accounting change (see note F)

(3)

Net income – applicable to common stockholders

13 97

Basic earnings per common share : (cents)

Before cumulative effect of accounting change

5 45

Cumulative effect of accounting change

- (1)

Net income – applicable to common stockholders

5 44

Diluted earnings per common share : (cents)

Before cumulative effect of accounting change

5 45

Cumulative effect of accounting change

- (1)

Net income – applicable to common stockholders

5 44

Weighted average number of common shares used in computation

238,129,583 222,737,513

Dividend per common share (cents)

50 82

(1)

See note R.

ANGLOGOLD ASHANTI LIMITED
CONDENSED CONSOLIDATED BALANCE SHEET

Prepared in accordance with US GAAP

At June 30,

2004

(unaudited)

At December 31,

2003

(As restated)

(1)

(As restated)

(1)

(in US Dollars, millions)

Assets

Current assets

1,502 1,283

Cash and cash equivalents

542

479

Receivables

616 551

Trade

72 39

Derivatives

305

370

Value added taxes

Other

217 123

Inventories (see note D)

245

154

Materials on the leach pad (see note D)

Property, plant and equipment, net

4,625 2,300

Acquired properties, net

1,714 737

Goodwill

518 226

Derivatives

134 94

Materials on the leach pad (see note D)

22 7

Other long-term assets

464 696

Total assets

8,979 5,343

Liabilities and Stockholders' equity

Current liabilities

1,324 1,116

Accounts payable and accrued liabilities

492

355

Derivatives

471 408

Short-term debt

337 331

Income and mining tax payable

Long-term debt

1,369 778

Derivatives

641 274

Deferred income and mining tax

1,589 789

Provision for environmental rehabilitation

170 124

Other accrued liabilities

26 6

Provision for post-retirement medical benefits

136 136

Minority interest

55 52

Commitments and contingencies

Share capital and reserves

3,669 2,068

Common stock

Stock issued 2004 – 264,403,394 (2003 – 223,136,342)

Additional paid in capital

4,955

3,415

Accumulated deficit

(714)

(616)

Accumulated other comprehensive income (see note L)

(583)

(740)

Total liabilities and stockholders' equity

8,979 5,343

(1)

See note R.

ANGLOGOLD ASHANTI LIMITED
CONDENSED CONSOLIDATED CASH FLOW STATEMENT

Prepared in accordance with US GAAP

Six months ended June 30,

2004

(unaudited)

2003

(unaudited)

(As restated)

(1)

(As restated)

(1)

(in US Dollars, millions)

Net cash provided by operating activities

170 210

Income before cumulative effect of accounting change

100

Reconciled to net cash provided by operations:

Profit on sale of assets

(4)

(7)

Depreciation, depletion and amortization

182

121

Deferred stripping costs

(15)

(12)

Impairment of assets

Deferred income and mining tax

(32)

Other non cash items

Net decrease in provision for environmental

rehabilitation and post-retirement medical

benefits

(5) (10)

Effect of changes in operating working capital items:

Receivables

(42)

(43)

Inventories

(11) (21)

Accounts payable and accrued liabilities

(3)

Net cash used in investing activities

(337) (114)

Additions to property, plant and equipment

(227)

(117)

Proceeds on sale of mining assets

Cash received as part of disposal

Cash paid as part of acquisition

(126)

Loans receivable advanced

(5)

(1)

Loans receivable repaid

Net cash generated/(used) in financing activities

221 (212)

Payments of short-term debt

(678)

(42)

Issuance of stock

2 2

Share issue expenses

Proceeds of long-term debt

1,019

Dividends paid

(122)

(190)

Net increase/(decrease) in cash and cash equivalents

54 (116)

Effect of exchange rate changes on cash

9 18

Cash and cash equivalents – January 1,

479 362

Cash and cash equivalents – June 30,

542 264

(1)

See note R.

ANGLOGOLD ASHANTI LIMITED

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED JUNE 30,
2004

Prepared in accordance with US GAAP

Note A. Basis of presentation

The accompanying unaudited condensed consolidated financial statements have been prepared
in accordance with accounting principles generally accepted in the United States of America
("US GAAP") for interim financial information. Accordingly, they do not include all of the
information and footnotes required by US GAAP for complete financial statements. In the opinion
of management, all adjustments (consisting of normal recurring accruals) considered necessary
for a fair presentation have been included. Operating results for the six-month period ended June
30, 2004 are not necessarily indicative of the results that may be expected for the year ending
December 31, 2004.

The balance sheet at December 31, 2003 has been derived from the audited financial
statements at that date but does not include all of the information and footnotes required by US
GAAP for complete financial statements.

The Company has restated the consolidated balance sheet as of December 31, 2003. (Refer to
Note R.)

Note B. Business Combination between AngloGold and Ashanti

On April 8, 2004, at the general meeting of AngloGold shareholders, the special resolution
approving the change of name of AngloGold to AngloGold Ashanti Limited was passed by the
requisite majority of shareholders, while on the same day, Ashanti announced that its
shareholders had voted overwhelmingly in favor of the scheme of arrangements for the business
combination at a shareholder’s meeting held on April 7, 2004. This followed the approval of the
Stability Agreement between the Government of Ghana and AngloGold as announced on
February 20, 2004.

On April 26, 2004, AngloGold announced that on Friday, April 23, 2004, the High Court in Ghana
confirmed the scheme of arrangement, in terms of which AngloGold acquired the entire issued
share capital of Ashanti Goldfields Company Limited. The court order approving the scheme
was lodged with the Registrar of Companies in Ghana on Monday, April 26, 2004, thereby giving
effect to the merger of the two companies and the name change to AngloGold Ashanti Limited.
The new company was listed on the Ghana Stock Exchange on Tuesday, April 27, 2004.
Following the Business Combination, Ashanti became a private company and a wholly-owned
subsidiary of AngloGold.

Under the terms of the Business Combination, holders of Ashanti securities received for every
Ashanti share or Ashanti GDS, 0.29 ordinary shares or 0.29 ADSs of AngloGold. Each ADS
represents one ordinary AngloGold share. On April 26, 2004, AngloGold issued 38,400,021
ordinary shares to former Ashanti shareholders and 2,658,000 ordinary shares under the
Stability Agreement to the Government of Ghana. On June 29, 2004, AngloGold issued a total of
75,731 ordinary shares to former Ashanti warrant holders pursuant to the Business Combination.

The market value of the issued AngloGold shares was approximately $1,547 million, based on
the average quoted value of the shares of $37.62 two days before and after October 15, 2003,
the date the terms of the transaction were announced. The market value of the issued shares,
together with the cash consideration paid to the Government of Ghana as part of the Stability
Agreement and cash consideration paid for outstanding options over Ashanti ordinary shares of
approximately $73 million (including transaction costs), gave rise to a total purchase price of
approximately $1,620 million.

Ashanti Goldfields Company Limited was delisted from the London, New York and Ghana stock
exchanges in late April 2004. AngloGold Ashanti has performed a preliminary purchase price
allocation based on independent appraisals and valuations. The transaction was accounted for
as a purchase business combination under US GAAP whereby identifiable assets acquired and
liabilities assumed were recorded at their fair market values as of the date of acquisition. The
excess of the purchase price over such fair value was recorded as goodwill and as such, the
acquisition resulted in goodwill of $182 million being recorded, relating mainly to the extended life
of AngloGold Ashanti by the Obuasi project in Ghana and enlarged negotiation base and
presence in Africa by Ashanti operations. In accordance with the provisions of SFAS142,
goodwill was assigned to specific reporting units. The company’s reporting units are generally
consistent with the operating mines underlying the segments identified in note J – Segment
information. Goodwill related to the acquisition is non-deductible for tax purposes. The final
purchase price allocation is not expected to vary significantly from the preliminary allocation. The
operations and financial condition of the interests in the companies and assets acquired in
Ashanti are included in the US GAAP condensed consolidated financial statements from April 26,
2004, the effective date of the Business Combination.

For information purposes only, the following unaudited pro forma financial data reflects the
consolidated results of operations of AngloGold Ashanti as if the Business Combination had
taken place on January 1, 2004 and on January 1, 2003:

ANGLOGOLD ASHANTI LIMITED

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED JUNE 30,
2004……continued

Prepared in accordance with US GAAP

Note B. Business Combination between AngloGold and Ashanti (continued)

Six months ended June 30,

2004 2003

(unaudited) (unaudited)

(As restated)

(in US Dollars, millions, except for share data)

Total revenue

1,206 1,200

Per basic and

diluted

common

share

(1)

(cents)

Per basic and

diluted

common

share (cents)

Net income before cumulative effect of accounting change

169

133

Cumulative effect of accounting change

(3)

(1)

Net income – applicable to common stockholders

169

130

Basic weighted average number of common shares used in computation

264,373,330

263,871,265

Diluted weighted average number of common shares used in computation

264,373,330

264,571,342

(1)

The calculation of diluted earnings per common share for the six months

ended June 30, 2004 did not assume the effect of 10,566,356 shares issuable
upon the exercise of Convertible Bonds as their effects are anti-dilutive for this
period.

The above pro forma financial data for the six months ended June 30, 2004 and
2003 do not include the application of hedge accounting prior to the acquisition
to significant portions of acquired derivative instruments as hedge accounting
documentation was not in place during these periods. The pro forma net income
for the six months ended June 30, 2003 assumes the effects of the Convertible
Bonds issue which was raised primarily to finance the acquisition costs, debt
repayment commitments, working capital and capital expenditure requirements
of Ashanti Goldfields Company Limited. The pro forma information is not
indicative of the results of operations that would have occurred had the
Business Combination been consummated on January 1, 2004 and 2003,
respectively. The information is not indicative of the group’s future results of
operations.

Note C. Ore Reserve development expenditure

The Company has reassessed the useful life of on-reef Ore Reserve development expenditure
with effect from January 1, 2004. The effect of this change in estimate on the results for the six
months ended June 30, 2004 is as follows:

Six months ended June 30, 2004

(in US Dollars, millions, except for share data)

Impact

Per basic

common

share

(cents)

Per diluted

common

share

(1)

(cents)

Income before income tax provision

Deferred income and mining tax

(9)

(4)

Net income

(1)

The calculation of diluted earnings per common share for the six months ended June 30, 2004

did not assume the effect of 10,566,356 shares issuable upon the exercise of Convertible Bonds
as their effects are anti-dilutive for this period.

Note D. Inventories

At June 30,

2004

At December 31,

2003

(unaudited)

(As restated)

(in US Dollars, millions)

The components of inventory consists of the following :

Gold in process

164

143

Gold on hand

Ore stockpiles

Uranium oxide and sulfuric acid

Supplies

114

366

260

Less: Heap leach inventory

(1)

(121)

(106)

245

154

(1)

Long-term and short-term portions relating to heap leach inventory classified separately as

materials on the leach pad.

ANGLOGOLD ASHANTI LIMITED

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED JUNE 30,
2004…continued

Prepared in accordance with US GAAP

Note E. Deferred stripping costs

At June 30,

2004

At December 31,

2003

(unaudited)

(As restated)

(in US Dollars, millions)

Movements in the deferred stripping costs balance were as follows:

Opening balance

Net amount deferred/(amortized)

Translation

(4)

Closing balance

Deferred stripping costs are classified as a component of Property, plant and equipment and are
considered to be insignificant to the balance sheet on a cumulative basis and the amounts deferred or
amortized are included in production costs in the condensed consolidated statements of income for all
periods presented.

Note F. Accounting change

The Company has adopted SFAS143 “Accounting for Asset Retirement Obligations (AROs)” with effect
from 1 January 2003 as follows:

Under SFAS143 the fair value of a liability for an asset retirement obligation is recorded in the period in
which it is incurred. When the liability is initially recorded, the cost is capitalized by increasing the
carrying amount of the related long-lived asset.

Over time, the liability is increased to reflect an interest element (accretion) considered in its initial
measurement at fair value, and the capitalized cost is amortized over the useful life of the related
asset. Where the obligation is operational of nature, and does not give rise to future economic benefit,
the capitalized cost is amortized in the period incurred. Upon settlement of the liability, a gain or loss
will be recorded if the actual cost incurred is different than the liability recorded.

The adoption of SFAS143 on January 1, 2003 resulted in an increase in Property, plant and equipment
of $1 million, an increase in Provision for environmental rehabilitation of $4 million and a cumulative
effect of adoption which decreased net income and stockholder’s equity by $3 million. No increase in
Deferred income and mining tax was recorded upon the adoption of SFAS143.

(in US Dollars,

The following is a reconciliation of the total liabilities for asset retirement obligations:

millions)

Balance as at December 31, 2003 (as restated, refer to Note R)

124

Addition due to the Business Combination between AngloGold and Ashanti (Refer to Note B)

Additions to liabilities

Liabilities settled

(3)

Accretion expense

Revisions

(2)

Translation

Balance as at June 30, 2004

170

Note G. Impairment of assets

In the six months ended June 30, 2004 the Company recorded an impairment of assets of $1 million
relating to mining assets and mineral rights in Australia. An impairment of $12 million was recorded in
the six months ended June 30, 2003 relating to the abandonment of exploration activities in the
Australian region.

Note H. Profit on sale of assets

The profit on sale of assets of $4 million recorded in the six months ended June 30, 2004 mainly
comprises a profit of $3 million (before taxation of $1 million) on sale of the Western Tanami Project in
Australia to Tanami Gold NL. In the six months ended June 30, 2003 the Company recorded a profit on
disposal of $10 million ($nil million tax effect) on the sale of its 70 percent interest in the Jerritt Canyon
Joint Venture in North America to Queenstake Resources USA Inc. and a loss of $3 million (before
taxation expense of $1 million) on the sale of its wholly owned Amapari Project to Mineração Pedra
Branca do Amapari, located in North Brazil.

Note I. Stock-based compensation plans

The Company has adopted the disclosure-only provisions of SFAS123 and applies Accounting
Principles Board Opinion No. 25 (APB No. 25) and related interpretations in accounting for its
employee stock-based compensation plans.

ANGLOGOLD ASHANTI LIMITED

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED JUNE 30,
2004…continued

Prepared in accordance with US GAAP

Note I. Stock-based compensation plans (continued)

At June 30, 2004, the Company has two stock-based employee compensation plans, which consists
of time-based awards and the performance related awards as disclosed in the Company's annual
report on Form 20-F for the year ended December 31, 2003. During the six months ended June 30,
2004 and 2003 there was no compensation expense recognized related to time-based awards as the
exercise price of all awards was greater than or equal to the fair market value of the underlying stock
on the date of grants.

As of June 30, 2004 $4 million compensation credit was recognized and reversed in additional paid
in capital, related to the performance awards under APB No. 25, of which the exercise price was
greater than or equal to the fair market value at the end of the reporting period. The performance
related options are accounted for as variable compensation awards, accordingly the compensation
expense is calculated at the end of each reporting period until the performance obligation has been
met or waived. Compensation expense will vary based on the fluctuations of the underlying stock
price in excess of the exercise price. The following table illustrates the effect on net income and
earnings per share if the Company had applied the fair value recognition provisions of SFAS123 to
stock-based employee compensation.

Six months ended June 30,

2004

2003

(unaudited) (unaudited)

(As restated)

(in US Dollars, millions)

Net income, as reported

Deduct: Variable compensation awards credit as calculated under APB No. 25

(4)

Deduct: Total stock-based employee compensation expense determined under fair value
based method for all awards, net of related tax effects

(6)

(5)

Pro forma net income

Earnings per share (cents)

Basic – as reported

Basic – pro forma

Diluted

(1)

– as reported

Diluted

(1)

– pro forma

(1)

The calculation of diluted earnings per common share for the six months ended June 30,

2004 did not assume the effect of 10,566,356 shares issuable upon the exercise of
Convertible Bonds as their effects are anti-dilutive for this period.

Six months ended June 30,

Note J. Segment information

2004 2003

(unaudited)

(As restated)

(in US Dollars, millions)

The Company produces gold as its primary product and does not have distinct divisional
segments in terms of principal business activity, but manages its business on the basis of
different geographic segments. In the six months ended June 30, 2004 the Company
changed its presentation of segment information from a regional basis to operating segments
by country. Following the change in the composition of reportable segments and where
applicable, the Company has restated the corresponding items of segment information for all
earlier periods presented. This information is consistent with the information used by the
Company’s chief operating decision makers in evaluating operating performance of, and
making resource allocation decisions among operations.

Revenues by area

South Africa

607

550

Argentina

Australia

Brazil

Ghana

(1)

Guinea

(1)

Mali

109

Namibia

North America

Tanzania

(2)

Zimbabwe

(1)

Corporate and other

Total revenues

1,077

991

Less: Equity method investments included in above

(122)

(147)

Total consolidated

955

844

ANGLOGOLD ASHANTI LIMITED

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED JUNE 30,
2004…………continued

Prepared in accordance with US GAAP

Note J. Segment information (continued)

Six months ended June 30,

2004

2003

(unaudited) (unaudited)

(As restated)

(in US Dollars, millions)

Segment income before deferred income and mining tax

South Africa

Argentina

Australia

(4)

Brazil

Ghana

(1)

Guinea

(1)

Mali

Namibia

North America

Tanzania

(2)

Zimbabwe

(1)

Corporate and other

Total segment income

124

182

(1)

Operations acquired as part of the Business Combination between AngloGold and

Ashanti (Refer to Note B)

(2)

Segment information presented for the six months ended June 30, 2004 includes an

additional 50 percent interest in the Geita mine in Tanzania acquired as part of the
Business Combination between AngloGold and Ashanti. Equity income from Geita
is included for the period ended April 26, 2004 (Refer to Note B)

Six months ended June 30,

2004

2003

(unaudited) (unaudited)

(As restated)

(in US Dollars, millions)

Reconciliation of segment income to Net income

Segment total

124

182

Exploration costs

(20)

(18)

General and administrative expenses

(24)

(23)

Non-hedge derivative (loss)/gains

(73)

Deferred income and mining tax benefit/(expensed)

(70)

Minority interest

(9)

Cumulative effect of accounting change

(3)

Net income

13 97

At June 30,

2004

At December 31,

2003

(unaudited)

(As restated)

(in US Dollars, millions)

Segment assets

South Africa

3,379 3,057

Argentina

238 264

Australia

613 649

Brazil

297 286

Ghana

(1)

2,228 -

Guinea

(1)

228 -

Mali

338

(3)

332

(3)

Namibia

32 30

North America

410 416

Tanzania

(2)

996

171

(3)

Zimbabwe

(1)

3 -

Corporate and other

217 138

Total segment assets

8,979 5,343

(1)

Operations acquired as part of the Business Combination between AngloGold and

Ashanti (Refer to Note B)

(2)

Segment information presented for the six months ended June 30, 2004 includes an

additional 50 percent interest in the Geita mine in Tanzania acquired as part of the
Business Combination between AngloGold and Ashanti (Refer to Note B)

(3)

Investment held

ANGLOGOLD ASHANTI LIMITED

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED JUNE 30,
2004…………continued

Prepared in accordance with US GAAP

Six months ended June 30,

Note K. Earnings per share data

2004 2003

The following table sets forth the computation of basic and diluted

(unaudited)

earnings per share for the periods indicated.

(As restated)

(in US Dollars, millions)

Numerator

Income before cumulative effect of accounting change

100

Cumulative effect of accounting change

(3)

Net income – applicable to common stockholders

Denominator for basic earnings per common share

Weighted average number of common shares

238,129,583

222,737,513

Basic earnings per common share (cents)

Dilutive potential common shares

Weighted average number of common shares

238,129,583

222,737,513

Dilutive potential of stock incentive options

700,077

Dilutive potential of Convertible Bonds

(1)

Denominator for diluted earnings per common share

Adjusted weighted average number of common shares and assumed conversions

238,129,583

223,437,590

Diluted earnings per common share (cents)

(1)

The calculation of diluted earnings per common share for the six months ended
June 30, 2004 did not assume the effect of 10,566,356 shares issuable upon the
exercise of Convertible Bonds as their effects are anti-dilutive for this period.

Note L. Accumulated other comprehensive income

Other comprehensive income, consists of the following:

Six months ended June 30,

2004 2003

(unaudited) (unaudited)

(As restated)

(in US Dollars, millions)

Opening balance

(740)

(1,025)

Translation gain / (loss)

217

Financial instruments

123

(586)

(728)

Note M. Employee benefit plans

The Company has made provision for pension and provident schemes covering
substantially all employees.

Components of net periodic benefit cost

Six months ended June 30,

2004 2003

(unaudited) (unaudited)

(in US Dollars, millions)

Pension
benefits

Other
benefits

Pension
benefits

Other
benefits

Service cost

Interest cost

Expected return on plan assets

(6)

Amortization of prior service cost

Amortization of net (gain)/loss

Net periodic benefit cost

Employer contributions

As disclosed in the Company's annual report on Form 20-F for the year ended
December 31, 2003, it expected to contribute $8 million to its pension plan in 2004. As of
June 30, 2004, $4 million of contributions have been made, with an expected $4 million to
be made towards the total expected contributions during the remaining six months of
2004.

In addition, on June 30, 2004 the Company contributed $5 million to fund its pension plan,
as part of a total anticipated contribution of $28 million over a period of eight years.

Net income

Translation gain / (loss)

217

Financial instruments

123

Total other comprehensive income is:

167

394

ANGLOGOLD ASHANTI LIMITED

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED JUNE 30,
2004…………continued

Prepared in accordance with US GAAP

Note N. Commitments and contingencies

North America – Reclamation

Pursuant to US environmental regulations, gold mining companies are obligated to close
their operations and rehabilitate the lands that they mine in accordance with these
regulations. AngloGold North America has posted reclamation bonds with various federal
and governmental agencies to cover potential environmental obligations in amounts
aggregating approximately: $45 million.
AngloGold Ashanti has provided a guarantee for these obligations which would be payable
in the event of AngloGold North America not being able to meet their environmental
obligations. As at June 30, 2004 the carrying value of these environmental obligations
relating to AngloGold North America amounted to $21 million and are included in the
Provision for environmental rehabilitation in the Company's consolidated balance sheet. The
environmental obligations will expire upon completion of such rehabilitation. There are no
recourse provisions that would enable AngloGold Ashanti to recover from third parties any of
the amounts paid under the guarantee.

North America – Equipment leases

Pursuant to the assignment of equipment leases to Queenstake Resources USA Inc., as a
result of the sale of Jerritt Canyon effective June 30, 2003, AngloGold North America has
become secondarily liable in the event of a default by Queenstake Resources USA Inc. in
performance of any of the lessee's obligations arising under the Lease. These agreements
have a approximate term of 3 years and the maximum potential amount of future payments
amounted to $1 million.

Geita – Project finance loan

AngloGold Ashanti has provided a letter of credit in favor of the Geita project finance lenders
for: $19 million.
The letter of credit may be called if Geita Gold Mining Limited fails to perform under their
project finance agreement and has a potential maximum tenor in accordance with this
agreement. The Geita Project Finance loan is included in Long-term debt in the Company's
consolidated balance sheet. In this event, Geita Gold Mining Limited would be liable to
AngloGold Ashanti.

Yatela loan

AngloGold Ashanti has signed as surety in favor of the bankers on the Yatela loan for $5
million. The Yatela Joint Venture is equity accounted.

AngloGold Offshore Investments Limited – Nufcor International Limited loan facility

During September 2003, AngloGold Offshore Investments Limited a wholly-owned subsidiary
of AngloGold Ashanti increased its existing guarantee of 50 percent of the Nufcor
International Limited loan facility with RMB International (Dublin) Limited from $25 million to
$40 million. AngloGold Ashanti has a 50 percent interest in its subsidiary Nufcor International
Limited. This loan is included in Long-term debt in the Company’s consolidated balance
sheet.

Australia – Exploration and development tenements

AngloGold Ashanti has given collateral to certain bankers for satisfactory contract
performance in relation to exploration and development tenements and mining operations in
Australia amounting to: $12 million.

North America – Gold shipments claims

AngloGold North America has a potential liability in respect of preference claims from a third
party amounting to: $2 million.
The potential liability is in respect of gold shipments returned by the third party to AngloGold
North America, which the bankruptcy trustee is claiming should not have been returned and
final shipments that should not have been paid as the third party had filed for protection
under Chapter 11 of the U.S. Bankruptcy Code.

Tax claims – Mali and South America

Tax claims in Mali including interest and penalties of: $6 million
Discussions with the Mali Government continue as to the validity of tax claims including
interest and penalties. The claims have arisen due to new legislation that is in conflict with
AngloGold Ashanti’s prior mining convention stability agreements and different
interpretations of the legislation. The final outcome of these claims cannot be determined at
present. The Sadiola and Yatela Joint Ventures are equity accounted.

Various existing equipment tax claim guarantees in South America amounting to: $3 million.

ANGLOGOLD ASHANTI LIMITED

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED JUNE 30,
2004…………continued

Prepared in accordance with US GAAP

Note N. Commitments and contingencies (continued)

US Class Actions

The consolidated class action which commenced in the year 2000 against the former Ashanti
Goldfields Company Limited, is pending against the Company and one officer and director
and one former director of Ashanti Goldfields Company Limited under United States Federal
Securities laws in the United States District Court for the Eastern District of New York. The
complaint alleges non-disclosures and misstatements regarding Ashanti Goldfields Company
Limited’s hedging position and hedging programme. The plaintiffs contend that the Company
and the individual defendants’ actions violated Sections 10(b) and 20(a) of the Securities
Exchange Act of 1934 and Rule 10b-5 promulgated under that Act. The plaintiffs seek
unspecified damages, attorneys’ and experts’ fees and other reliefs. The damages sought by
the plaintiffs have not yet been specified, as is common practice in US litigation at the
current state of proceedings.
The Company continues to vigorously defend the action. Depositions of key witnesses have
been taken. Certain pre-trial motions filed by both parties have yet to be resolved by the trial
court. Although the Company cannot make any assurances regarding the ultimate result of
the litigation at this stage, based on its current knowledge, it believes that the outcome will
have no material adverse effect on the Company’s financial position.

Kimin – Employee Actions

A number of expatriate employees instituted an action against Kilo-Moto Mining Corporation
(“Kimin”), a subsidiary of the Company, and against the Company in the Brussels Labour
Court for arrears of salary, severance payments and payment in lieu of holiday. Other claims
have been made against the Company and Kimin by other ex-employees, consultants and
third party creditors. The Company is currently evaluating these claims. Based on
information currently available, the Company believes that this potential liability has been
reasonably provided for in its consolidated financial statements.

Siguiri – Tax Demands

The Government of the Republic of Guinea has demanded 23 billion Guinean francs
(approximately $11 million) from Société Ashanti Goldfields de Guinée S.A. (“SAG”) in
respect of withholding and other taxes. SAG has a Convention de Base with the Republic of
Guinea which provides for exemptions from these items and is therefore contesting this
demand.
During May 2004 the Government of Guinea had placed an embargo on all imports and
exports by the Siguiri mine, including the export of gold bullion and the import of diesel (Refer
to Note O).

Note O. Recent developments

During the six months ended June 30, 2004 AngloGold Ashanti made the
following announcements:

Embargo by the Government of Guinea for Siguiri Mine

On May 26, 2004, the Company announced that the Government of Guinea had placed an
embargo on imports and exports by AngloGold Ashanti’s Siguiri Mine. This was followed by
a further announcement on June 14, 2004 in which the Company advised that constructive
discussions had commenced and that the supply of diesel fuel to the mine had resumed.
However, the embargo on the export of gold from Siguiri remains in place. AngloGold
Ashanti is using its best efforts to bring this undesirable state of affairs to a speedy and
satisfactory resolution.

Three-day strike at Morila

On June 21, 2004, AngloGold Ashanti announced that talks between management and union
representatives were continuing, following the return to work by the workforce after a three
day strike at Morila.

Termination – sale of Union Reefs Gold Mine

Following an announcement made on November 14, 2003 in which the Company advised
that an agreement had been entered into for the sale of Union Reefs Gold Mine and
associated assets and tenements, AngloGold Ashanti advises that the agreement has been
terminated and related negotiations for the sale have ceased but that the Company continues
to explore other options for the sale of these gold mining assets.

AngloGold Ashanti acquires 29.9 % stake in Trans-Siberian Gold plc

On July 1, 2004 AngloGold Ashanti announced that it had entered into an agreement with
Trans-Siberian Gold plc for the acquisition of a 29.9 percent stake in the company through an
equity investment of approximately ₤17.6m (approximately $32 million). This first move into
Russia allows AngloGold Ashanti the opportunity of establishing an association with credible
partners familiar with the environment.

ANGLOGOLD ASHANTI LIMITED

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED JUNE 30,
2004…………continued

Prepared in accordance with US GAAP

Note P. Declaration of dividends

On January 29, 2004, AngloGold declared a final dividend of 335 South African cents (49.82
US cents) per ordinary share for the year ended December 31, 2003 with a record date of
February 20, 2004 and a payment date of February 27, 2004 for holders of ordinary shares
and CDIs, and March 8, 2004 for holders of ADSs. On July 29, 2004 AngloGold Ashanti
declared an interim dividend of 170 South African cents (approximately 27 US cents) per
ordinary share for the six months ended June 30, 2004 with a record date of August 20, 2004
and a payment date of August 27, 2004 for holders of ordinary shares and CDIs, August 30,
2004 for holders of GhDSs and September 7, 2004 for holders of ADSs. 100 GhDSs
represents one ordinary share. Each ADS represents one ordinary share.

Note Q. Supplemental condensed consolidating financial information

Subject to the necessary regulatory approvals, it is AngloGold Ashanti’s current intention to
transfer certain of its operations and assets located outside South Africa (excluding certain
operations and assets in the United States) to AngloGold Holdings plc. (originally SMI
Holdings Limited and formerly AngloGold Holdings Limited) (“IOMco”), its wholly-owned
subsidiary. IOMco is an Isle of Man registered company.

It is AngloGold Ashanti’s current intention that from time to time IOMco may assume or issue
debt securities which may be fully and unconditionally guaranteed by AngloGold Ashanti
Limited (being the “Guarantor”). The following is condensed consolidating financial
information for the AngloGold Ashanti group as of June 30, 2004 and December 31, 2003
and for the six months ended June 30, 2004 and 2003, with a separate column for each of
IOMco as Issuer, AngloGold Ashanti Limited as Guarantor and the other businesses of the
AngloGold Ashanti group combined (the “Non-Guarantor Subsidiaries”). For the purposes of
the condensed consolidating financial information, AngloGold Ashanti carries its investments
under the equity method.

ANGLOGOLD ASHANTI LIMITED

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED JUNE 30, 2004…………continued

Prepared in accordance with US GAAP

Note Q. Supplemental condensed consolidating financial information (continued)

Condensed consolidating statements of income

FOR THE SIX MONTHS ENDED JUNE 30, 2004

(As restated)

(In million US dollars, except share information)

AngloGold Ashanti

(the “Guarantor”)

IOMco

(the “Issuer”)

Other subsidiaries

(the “Non-Guarantor

Subsidiaries”)

Cons

adjustments

Total

Sales and other income

612 1 353

(11)

955

Product sales

585 - 341

926

Interest, dividends and other

27 1

(11)

Costs and expenses

634 1 326

961

Production costs

422 - 168

590

Exploration costs

4 -

Related party transactions

14 -

General and administrative

21 -

Royalties paid/(received)

- -

Market development costs

5 -

Depreciation, depletion and amortization

77 - 105

182

Impairment of assets

- -

Interest expense

21 1

Accretion expense

3 -

Employment severance costs

5 -

Profit on sale of assets

- -

(4)

Non-hedge derivative loss

62 -

(Loss)/income before equity income and income tax

(22) -

(11)

(6)

Equity income in affiliates

13 -

Equity income/(loss) in subsidiaries

2 -

(2)

(Loss)/income before income tax provision

(7) -

(13)

Deferred income and mining tax benefit/(expensed)

25 - (10)

Income/(loss) before minority interest

18 -

(13)

Minority interest

- -

(9)

Income/(loss) after minority interest

18 -

(13)

Preferred stock dividends

(5) -

(6)

Income/(loss) before cumulative effect of accounting change

13 -

(2)

Cumulative effect of accounting change

- -

Net income/(loss) - applicable to common stockholders

13 -

(2)

ANGLOGOLD ASHANTI LIMITED

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED JUNE 30, 2004…………continued

Prepared in accordance with US GAAP

Note Q. Supplemental condensed consolidating financial information (continued)

Condensed consolidating statements of income

FOR THE SIX MONTHS ENDED JUNE 30, 2003

(As restated)

(In million US dollars, except share information)

AngloGold Ashanti

(the “Guarantor”)

IOMco

(the “Issuer”)

Other subsidiaries

(the “Non-Guarantor

Subsidiaries”)

Cons

adjustments

Total

Sales and other income

573 - 299

(28)

844

Product sales

536 - 290

826

Interest, dividends and other

37 -

(28)

Costs and expenses

439 - 262

701

Production costs

382 - 153

535

Exploration costs

1 - 17

Related party transactions

10 -

General and administrative

21 -

Royalties paid/(received)

29 - (23)

Market development costs

8 -

Depreciation, depletion and amortization

39 - 82

121

Impairment of assets

- - 12

Interest expense

5 -

Accretion expense

1 -

Employment severance costs

1 -

Loss/(profit) on sale of assets

1 - (8)

(7)

Non-hedge derivative (gains)/loss

(59) - 21

(38)

Income/(loss) before equity income and income tax

134 - 37

(28)

143

Equity income in affiliates

36 -

Equity (loss)/income in subsidiaries

(11) -

Income/(loss) before income tax provision

159 - 37

(17)

179

Deferred income and mining tax expensed

(57) - (13)

(70)

Income/(loss) before minority interest

102 - 24

(17)

109

Minority interest

- - (9)

(9)

Income/(loss) after minority interest

102 - 15

(17)

100

Preferred stock dividends

(5) - (23)

Income/(loss) before cumulative effect of accounting change

97 - (8)

100

Cumulative effect of accounting change

- - (3)

(3)

Net income/(loss) - applicable to common stockholders

97 - (11)

Condensed consolidating balance sheets

AT JUNE 30, 2004

(As restated)

(In million US dollars, except share information)

AngloGold Ashanti

(the “Guarantor”)

IOMco

(the “Issuer”)

Other subsidiaries

(the “Non-Guarantor

Subsidiaries”)

Cons

adjustments

Total

ASSETS

Current Assets

1,294 1,072

4,189

(5,053)

1,502

Cash and cash equivalents

122 199

221

542

Receivables

1,087 873 3,709

(5,053)

616

Trade

38 - 34

Inter-group balances

695 853 3,505

(5,053)

Derivatives

232 - 73

305

Value added taxes

4 - 18

Other

118 20

217

Inventories

85 - 160

245

Materials on the leach pad

- - 99

Property, plant and equipment, net

1,698 -

2,927

4,625

Acquired properties, net

314 -

1,400

1,714

Goodwill

- - 777

(259)

518

Derivatives

125 -

134

Materials on the leach pad

- - 22

Other long-term assets

2,947 1,522

177

(4,182)

464

Total assets

6,378 2,594

9,501

(9,494)

8,979

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities

1,237 24 5,067

(5,004)

1,324

Accounts payable and accrued liabilities

245

191

492

Inter-group balances

637 -

4,407

(5,044)

Derivatives

311 - 160

471

Short-term debt

25 8 304

337

Income and mining tax payable

19 -

Long-term debt

318 989

1,369

Derivatives

115 - 526

641

Deferred income and mining tax

827 - 802

(40)

1,589

Provision for environmental rehabilitation

62 - 108

170

Other accrued liabilities

1 - 25

Provision for post-retirement medical benefits

134 -

136

Minority interest

15 - 40

Commitments and contingencies

Share capital and reserves

3,669 1,581 2,869

(4,450)

3,669

Common stock issued

11 - 761

(761)

Additional paid in capital

4,955 1,581

821

(2,402)

4,955

Accumulated deficit

(714) - 150

(150)

(714)

Accumulated other comprehensive income

(583)

1,137

(1,137)

(583)

Total liabilities and stockholders’ equity

6,378 2,594

9,501

(9,494)

8,979

ANGLOGOLD ASHANTI LIMITED

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED JUNE 30, 2004…………continued

Prepared in accordance with US GAAP

Note Q. Supplemental condensed consolidating financial information (continued)

Condensed consolidating balance sheets

AT DECEMBER 31, 2003

(As restated)

(In million US dollars, except share information)

AngloGold Ashanti

(the “Guarantor”)

IOMco

(the “Issuer”)

Other subsidiaries

(the “Non-Guarantor

Subsidiaries”)

Cons

adjustments

Total

ASSETS

Current Assets

1,550 - 1,339

(1,606)

1,283

Cash and cash equivalents

280 - 199

479

Receivables

1,160 - 997

(1,606)

551

Trade

23 -

Inter-group balances

746 - 860

(1,606)

Derivatives

316 -

370

Value added taxes

11 -

Other

64 -

123

Inventories

110 -

154

Materials on the leach pad

- -

Property, plant and equipment, net

1,452 - 848

2,300

Acquired properties, net

313 - 424

737

Goodwill

3 - 482

(259)

226

Derivatives

85 -

Materials on the leach pad

- -

Other long-term assets

1,542 - 197

(1,043)

696

Total assets

4,945 - 3,306

(2,908)

5,343

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities

1,526 - 1,117

(1,527)

1,116

Accounts payable and accrued liabilities

244

355

Inter-group balances

662 - 900

(1,562)

Derivatives

328 -

408

Short-term debt

284 -

331

Income and mining tax payable

8 -

Long-term debt

300 - 478

778

Derivatives

144 - 130

274

Deferred income and mining tax

716 - 108

(35)

789

Provision for environmental rehabilitation

49 -

124

Other accrued liabilities

- -

Provision for post-retirement medical benefits

128 -

136

Minority interest

14 -

Commitments and contingencies

Share capital and reserves

2,068 - 1,346

(1,346)

2,068

Common stock issued

9 - 192

(192)

Additional paid in capital

3,415 - 790

(790)

3,415

Retained deficit

(616) - 148

(148)

(616)

Accumulated other comprehensive income (740)

216

(216)

(740)

Total liabilities and stockholders’ equity

4,945 - 3,306

(2,908)

5,343

ANGLOGOLD ASHANTI LIMITED

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED JUNE 30, 2004…………continued

Prepared in accordance with US GAAP

Note Q. Supplemental condensed consolidating financial information (continued)

ANGLOGOLD ASHANTI LIMITED

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED JUNE 30, 2004…………continued

Prepared in accordance with US GAAP

Note Q. Supplemental condensed consolidating financial information (continued)

Condensed consolidating statements of cash flow

FOR THE SIX MONTHS ENDED JUNE 30, 2004

(As restated)

(In million US dollars, except share information)

AngloGold Ashanti

(the “Guarantor”)

IOMco

(the “Issuer”)

Other subsidiaries

(the “Non-Guarantor

Subsidiaries”)

Cons

adjustments

Total

Net cash provided by/(used in) operating activities

367 (606)

420

(11)

170

Income/(loss) after minority interest

18 -

(13)

Reconciled to net cash provided by/(used in) operations:

Profit on sale of assets

- -

(4)

Depreciation, depletion and amortization

105

182

Deferred stripping costs

- -

(15)

Impairment of assets

- -

Deferred income and mining tax

(36) -

(32)

Other non cash items

83 (5)

Net decrease in provision for environmental rehabilitation
and post-retirement medical benefits

(5)

Effect of changes in operating working capital items:

Net movement in inter-group receivables and payables

240

(602)

362

Receivables

(48) 1

(42)

Inventories

25 -

(36)

(11)

Accounts payable and accrued liabilities

(11)

(3)

Net cash used in investing activities

(147) (183)

(7)

(337)

Additions to property, plant and equipment (142)

(85)

(227)

Proceeds on sale of mining assets

- -

Cash received as part of disposal

- -

Cash paid as part of acquisition

- (183)

(126)

Loans receivable advanced

(5) -

(5)

Loans receivable repaid

- -

Net cash (used)/generated in financing activities

(375) 988

(403)

221

Payments of short-term debt

(286) - (392)

(678)

Insurance of stock

2 -

Share issue expenses

- -

Proceeds of long-term debt

25 988

1,019

Dividends paid

(116) -

(17)

(122)

Net (decrease)/increase in cash and cash equivalents

(155) 199

(10)

Effect of exchange rate changes on cash

(3) -

Cash and cash equivalents – January 1,

280 -

199

479

Cash and cash equivalents – June 30,

122 199

221

542

ANGLOGOLD ASHANTI LIMITED

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED JUNE 30, 2004…………continued

Prepared in accordance with US GAAP

Note Q. Supplemental condensed consolidating financial information (continued)

Condensed consolidating statements of cash flow

FOR THE SIX MONTHS ENDED JUNE 30, 2003

(As restated)

(In million US dollars, except share information)

AngloGold Ashanti

(the “Guarantor”)

IOMco

(the “Issuer”)

Other subsidiaries

(the “Non-Guarantor

Subsidiaries”)

Cons

adjustments

Total

Net cash provided by/(used in) operating activities

89 - 149

(28)

210

Income/(loss) after minority interest

102

(17)

100

Reconciled to net cash provided by/(used in) operations:

Loss/(profit) on sale of assets

1 - (8)

(7)

Depreciation, depletion and amortization

121

Deferred stripping costs

- - (12)

(12)

Impairment of assets

- -

Deferred income and mining tax

37 - (22)

Other non cash items

(54) -

(11)

Net decrease in provision for environmental rehabilitation
and post-retirement medical benefits

(6) - (4)

(10)

Effect of changes in operating working capital items:

Net movement in inter-group receivables and payables

(11)

Receivables

(42) - (1)

(43)

Inventories

(8) - (13)

(21)

Accounts payable and accrued liabilities

Net cash used in investing activities

(77) - (37)

(114)

Additions to property, plant and equipment (76)

(41)

(117)

Proceeds on sale of mining assets

(1) -

Cash received as part of disposal

- -

Cash paid as part of acquisition

- -

Loans receivable advanced

- - (1)

(1)

Loans receivable repaid

- -

Net cash (used)/generated in financing activities

(188) - (52)

(212)

Payments of short-term debt

(7) - (35)

(42)

Insurance of stock

2 -

Share issue expenses

- -

Proceeds of long-term debt

12 -

Dividends paid

(195) - (23)

(190)

Net (decrease)/increase in cash and cash equivalents

(176) - 60

(116)

Effect of exchange rate changes on cash

9 -

Cash and cash equivalents – January 1,

184 - 178

362

Cash and cash equivalents – June 30,

17 - 247

264

ANGLOGOLD ASHANTI LIMITED

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED JUNE 30,
2004…….continued

Prepared in accordance with US GAAP

Note R. Restatement of previously issued financial statements

On July 30, 2004, AngloGold Ashanti furnished on Form 6-K to the United States Securities and
Exchange Commission (SEC), unaudited condensed consolidated financial information as of
June 30, 2004 and for the six month period ended June 30, 2004, prepared in accordance with
U.S. GAAP, and related management’s discussion and analysis of financial condition and results
of operations.

Since this date, AngloGold Ashanti has identified various events that will result in adjustments to
the financial information furnished on the Form 6-K which are set out below:

•

The company indicated that it had written off goodwill of $182 million resulting from the
Business Combination between AngloGold and Ashanti due to the decline in the share price
from the announcement date to the completion date. The terms of this transaction were first
announced on October 15, 2003 and the transaction was concluded on April 26, 2004. After
further consideration and assessment of accounting guidance in SFAS142, AngloGold
Ashanti reversed this write off. As at December 31, 2004, AngloGold Ashanti performed its
annual goodwill impairment test and concluded that no write down is required, primarily due
to the subsequent increase in gold price.

•

The company reported the Acquired Hedge Creditor from Ashanti on the basis in which the
take-on fair value of contracts designated as being Normal Sale Exempted, are netted off
against mining assets. After further consideration and assessment of accounting guidance in
FIN39, the company changed its accounting treatment to report the Acquired Hedge Creditor
and mining assets on a gross basis.

•

The company reported its investments in joint ventures in which it had joint control under the
proportionate consolidation method. After further consideration and assessment of the
accounting guidance in APB 18 and subsequent consensus opinions issued by the
Emerging Issues Task Force of the Financial Accounting Standards Board, AngloGold
Ashanti has determined that these investments should be reported in terms of the equity
accounting method.

No attempt has been made in this amended Form 6-K to modify or update other disclosures
presented in the original Form 6-K being amended, except as required to reflect the effects of the
restatement. This Form 6-K/A does not reflect events occurring after the filing of the original
Form 6-K it amends. Information not affected by the restatement is unchanged and reflects the
disclosure made at the time of the original submission of the Form 6-K to the SEC on July 30,
2004. Accordingly, this Form 6-K/A should be read in conjunction with our filings with and
submissions to the SEC subsequent to the filing of the original Form 6-K being amended,
including any amendments to those filings or submissions. The following items also have been
amended: Form 6-K containing unaudited condensed consolidated financial information as of
September 30, 2004 and for the nine month period ended September 30, 2004, prepared in
accordance with U.S. GAAP, and review of financial and operating performance, furnished to the
SEC on October 29, 2004.

The effects of the restatements on the unaudited condensed consolidated income statements,
the unaudited condensed consolidated cash flow statements and unaudited condensed
consolidated statements of comprehensive income for the six months ended June 30, 2004 and
2003 and the unaudited condensed consolidated balance sheets as of June 30, 2004 and
December 31, 2003, are summarized in the following tables:

ANGLOGOLD ASHANTI LIMITED

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED JUNE 30,
2004…continued

Prepared in accordance with US GAAP

Note R. Restatement of previously issued financial statements (continued)

Unaudited condensed consolidated income statement

Six months ended June 30, 2004

As previously

reported

Adjustments As restated

(in US Dollars, millions, except for share data)

Sales and other income

1,077 (122) 955

Costs and expenses

1,245 (284) 961

Loss before equity income and income tax

(168)

162

(6)

Equity income in affiliates

- 13 13

(Loss)/income before income tax provision

(168)

175

Deferred income and mining tax benefit

Minority interest

(9) -

(9)

Net (loss)/income before cumulative effect of accounting change

(166)

179

Net (loss)/income

(166) 179 13

Basic and diluted (loss)/earnings per common share: (cents)

(Loss)/income before cumulative effect of accounting change

(70)

Net (loss)/income

(70) 75 5

Unaudited condensed consolidated income statement

Six months ended June 30, 2003

As previously

reported

Adjustments As restated

(in US Dollars, millions, except for share data)

Sales and other income

991 (147) 844

Costs and expenses

815 (114) 701

Income before equity income and income tax

176

(33)

143

Equity income in affiliates

- 36 36

Income before income tax provision

176

179

Deferred income and mining tax expensed

(67)

(3)

(70)

Minority interest

(9) -

(9)

Net income before cumulative effect of accounting change

100

Net income

97 -

Basic and diluted earnings per common share: (cents)

Income before cumulative effect of accounting change

Net income

44 -

Unaudited condensed consolidated cash flow statement

Six months ended June 30, 2004

As previously

reported

Adjustments As restated

(in US Dollars, millions)

Net cash provided by operating activities

171

(1)

170

Net cash used in investing activities (344)

(337)

Net cash generated in financing activities

214

221

Effect of exchange rate changes on cash

Cash and cash equivalents – beginning of year

505

(26)

479

Cash and cash equivalents – end of year

555

(13)

542

ANGLOGOLD ASHANTI LIMITED

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED JUNE 30,
2004…continued

Prepared in accordance with US GAAP

Note R. Restatement of previously issued financial statements (continued)

Unaudited condensed consolidated cash flow statement

Six months ended June 30, 2003

As previously

reported

Adjustments As restated

(in US Dollars, millions)

Net cash provided by operating activities

226

(16)

210

Net cash used in investing activities (125)

(114)

Net cash used in financing activities (221)

(212)

Effect of exchange rate changes on cash

Cash and cash equivalents – beginning of year

413

(51)

362

Cash and cash equivalents – end of year

311

(47)

264

Unaudited condensed consolidated statement of comprehensive income

Six months ended June 30, 2004

As previously

reported

Adjustments As restated

(in US Dollars, millions)

Net (loss)/income

(166) 179 13

Comprehensive (loss)/income items:

Translation gain

31 -

Financial instruments

123 -

123

Total other comprehensive income

(12)

179

167

Unaudited condensed consolidated statement of comprehensive income

Six months ended June 30, 2003

As previously

reported Adjustments As restated

(in US Dollars, millions)

Net (loss)/income

97 -

Comprehensive (loss)/income items:

Translation gain

217 -

217

Financial instruments

80 -

Total other comprehensive income

394

Unaudited condensed consolidated balance sheet

At June 30, 2004

As previously

reported

Adjustments As restated

(in US Dollars, millions)

Cash and cash equivalents

555 (13) 542

Other current assets

1,047 (87) 960

Investment in affiliates

(1)

5 333 338

Non current assets

6,929 210

7,139

Total assets

8,536 443

8,979

Current liabilities

1,305 19

1,324

Non current liabilities

3,686 245

3,931

Minority interests

55 -

Stockholders’ equity

3,490 179

3,669

Total liabilities and stockholders’ equity

8,536

443

8,979

(1)

Included in long-term assets.

ANGLOGOLD ASHANTI LIMITED

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED JUNE 30,
2004…continued

Prepared in accordance with US GAAP

Note R. Restatement of previously issued financial statements (continued)

Unaudited condensed consolidated balance sheet

At December 31, 2003

As previously

reported

Adjustments As restated

(in US Dollars, millions)

Cash and cash equivalents

505 (26) 479

Other current assets

905 (101) 804

Equity method investments

(1)

5 503 508

Non current assets

4,164 (612) 3,552

Total assets

5,579 (236) 5,343

Current liabilities

1,202 (86)

1,116

Non current liabilities

2,257 (150) 2,107

Minority interests

52 -

Stockholders’ equity

2,068 -

2,068

Total liabilities and stockholders’ equity

5,579

(236)

5,343

(1)

Included in long-term assets.

Form 6-K/A Explanatory note

On July 30, 2004, AngloGold Ashanti furnished on Form 6-K to the United States Securities and Exchange Commission
(SEC), unaudited condensed consolidated financial information as of June 30, 2004 and for the six month period ended
June 30, 2004, prepared in accordance with U.S. GAAP, and related management’s discussion and analysis of financial
condition and results of operations.

Since this date, the CompanyAngloGold Ashanti has identified various events that will result in adjustments to the
financial information furnished on the Form 6-K which are set out below:
In this Form 6-K,

•

The company indicated that it had written off goodwill of $182 million resulting from the Business Combination
between AngloGold and Ashanti due to the decline in the share price from the announcement date to the
completion date. The terms of this transaction were first announced on October 15, 2003 and the transaction was
concluded on April 26, 2004. After further consideration and assessment of accounting guidance in SFAS142,
AngloGold Ashanti reversed this write off. As at December 31, 2004, AngloGold Ashanti performed its annual
goodwill impairment test and concluded that no write down is required, primarily due to the subsequent increase in
gold price.

•

In addition, in this Form 6-K tThe company reported the Acquired Hedge Creditor from Ashanti on the basis in
which the take-on fair value of contracts designated as being Normal Sale Exempted, are netted off against mining
assets. After further consideration and assessment of accounting guidance in FIN39, the company changed its
accounting treatment to report the Acquired Hedge Creditor and mining assets on a gross basis.

•

The company reported its investments in joint ventures in which it had joint control under the proportionate
consolidation method. After further consideration and assessment of the accounting guidance in APB 18 and
subsequent consensus opinions issued by the Emerging Issues Task Force of the Financial Accounting Standards
Board, Anglo Gold Ashanti has determined that these investments should be reported in terms of the equity
accounting method.

To correct these errors, AngloGold Ashanti restated its unaudited condensed consolidated balance sheets as of
June 30, 2004 and December 31, 2003, the unaudited condensed income statements for the six months ended June 30,
2004 and 2003 and the unaudited condensed consolidated statements of cash flows for the six months ended June 30,
2004 and 2003. AngloGold Ashanti has also restated the notes to its unaudited condensed consolidated financial
statements, where necessary, to reflect these adjustments.

For information regarding this restatement and the effects on significant financial statement line items, see Note R,
“Restatement of previously issued financial statements,” to the condensed consolidated financial statements. The
operating and financial review and prospects discussed below, gives effect of this restatement.

No attempt has been made in this amended Form 6-K to modify or update other disclosures presented in the original
Form 6-K being amended, except as required to reflect the effects of the restatement. This Form 6-K/A does not reflect
events occurring after the filing of the original Form 6-K it amends. Information not affected by the restatement is
unchanged and reflects the disclosure made at the time of the original submission of the Form 6-K to the SEC on
July 30, 2004. Accordingly, this Form 6-K/A should be read in conjunction with our filings with and submissions to the
SEC subsequent to the filing of the original Form 6-K being amended, including any amendments to those filings or
submissions. The following items also have been amended: Form 6-K containing unaudited condensed consolidated
financial information as of September 30, 2004 and for the nine month period ended September 30, 2004, prepared in
accordance with U.S. GAAP, and review of financial and operating performance, furnished to the SEC on October 29,
2004.

Operating and financial review and prospects

In the following related management’s discussion of operating and financial review and prospects, references to $ are to
the lawful currency of the United States, references to A$ are to the lawful currency of Australia and references to BRL
are to the lawful currency of Brazil.

Overview

AngloGold Ashanti is a global gold producer with 25 operations in 11 countries, and gold production nearing 7 million
ounces annually. The company was formed in 2004 as a result of the completed Business Combination of AngloGold
and Ashanti Goldfields. The combined company has one of the world's largest reserves and resources bases and
focused exploration activities around the globe. Employing more than 62,500 people around the world, AngloGold
Ashanti is listed on the following exchanges: JSE Securities Exchange South Africa (JSE) as well as the London, New
York, Ghana and Australian stock exchanges and Euronext Paris and Euronext Brussels.

Introduction

Operating results

AngloGold Ashanti’s revenues are derived primarily from the sale of gold produced at its mines. An insignificant portion
of its revenue is derived from the sales of silver, uranium oxide and sulphuric acid. As a result, AngloGold Ashanti’s
operating results are directly related to the price of gold which can fluctuate widely and are affected by numerous factors
beyond its control, including industrial and jewellery demand, the strength of the US dollar (the currency in which the
price of gold is generally quoted) and of other currencies, interest rates, actual or expected gold sales by central banks,
forward sales by producers, global or regional political or economic events, and production and cost levels in major
gold-producing regions such as South Africa.

As the amounts produced in any single year constitute a very small portion of the total potential supply of gold, normal
variations in current production do not necessarily have a significant impact on the supply of gold or on its price. If
revenue from gold sales falls for a substantial period below AngloGold Ashanti’s cost of production at its operations,
AngloGold Ashanti could determine that it is not economically feasible to continue commercial production at any or all of
its operations or to continue the development of some or all of its projects

Impact of exchange rate fluctuations

In line with the global trend of a weaker US dollar, the rand strengthened against the US dollar by 7 percent in the first
six months of 2004 (based on the exchange rates of R6.67 and R6.23 per US dollar on January 1, 2004 and June 30,
2004, respectively). In addition, when comparing the average exchange rates of the rand against the US dollar of R6.67
and R8.03 during the first six months of 2004 and 2003, respectively, the value of the rand gained 17 percent against
the US dollar. The Australian dollar also strengthened against the US dollar by 17 percent based on the average
exchange rates of A$1.35 and A$1.62 per US dollar during the first six months of 2004 and 2003, respectively. As a
result of these strong local currencies, production costs expressed in US dollars increased during the six-month period
ended June 30, 2004 when compared with the same period of 2003 which negatively impacted on the profitability of
AngloGold Ashanti.

Acquisitions and dispositions

The global gold mining industry has experienced active consolidation and rationalization activities in recent years.
Accordingly, AngloGold Ashanti has been, and expects to continue to be, involved in a number of acquisitions and
dispositions as part of this global trend and to identify value-adding Business Combination and acquisition opportunities.

On May 23, 2003, the Company announced that it had signed an agreement to sell its wholly-owned Amapari Project to
Mineração Pedra Branca do Amapari. The effective date of the transaction was May 19, 2003. The Amapari project is
located in the State of Amapá, North Brazil.

On June 6, 2003, the Company announced that it had finalized the sale of its 49 percent stake in the Gawler Craton
Joint Venture, including the Tunkillia project located in South Australia to Helix Resources Limited. Helix’s proposed
acquisition of AngloGold’s rights to the Tarcoola Project, 60 kilometres to the south, was excluded from the final
agreement. This resulted in a restructure of the original agreement terms, as announced on April 8, 2003.

On July 2, 2003, the Company announced that it had concluded the sale of its interest in the Jerritt Canyon Joint
Venture to Queenstake Resources USA Inc. effective June 30, 2003. This followed negotiations originally announced
on February 27, 2003. Queenstake accepted full closure and reclamation liabilities. The shares acquired by AngloGold
in this transaction were issued by Queenstake Resources Limited, a subsidiary of Queenstake, and represents
approximately 9.2 percent of that company’s issued share capital. AngloGold disposed of its entire interest in
Queenstake during November 2003.

On January 20, 2004, the Company announced that it had received a cash payment of A$3.75 million and 25 million
fully paid ordinary shares from Tanami Gold NL in Australia, as consideration for Tanami Gold's purchase of the
Western Tanami Project. This follows an initial payment of A$250,000 made on November 24, 2003, when the Heads
of Agreement was signed by the companies.

Following an announcement made on November 14, 2003 in which the Company advised that an agreement had been
entered into for the sale of Union Reefs Gold Mine and associated assets and tenements, AngloGold Ashanti advises
that the agreement has been terminated and related negotiations for the sale have ceased but that the Company
continues to explore other options for the sale of these gold mining assets.

On July 1, 2004 AngloGold Ashanti announced that it had entered into an agreement with Trans-Siberian Gold plc for
the acquisition of a 29.9 percent stake in the company through an equity investment of approximately ₤17.6m
(approximately $32 million). This first move into Russia allows AngloGold Ashanti the opportunity of establishing an
association with credible partners familiar with the environment.

AngloGold Ashanti Business Combination

On May 16, 2003, AngloGold and Ashanti confirmed that they were in discussions regarding a proposed Business
Combination of the two companies and on August 4, 2003 the companies announced that they had agreed the terms of
a recommended Business Combination at an exchange ratio of 0.26 ordinary shares for every Ashanti share. On the
same date, AngloGold entered into the Lonmin Support Deed, pursuant to which Lonmin, which held 27.6 percent of
Ashanti's issued share capital, agreed, among other things, to vote its Ashanti shares in favor of the Business
Combination. After further discussions with AngloGold and detailed, careful consideration of a competitive proposal,
and following the increase by AngloGold in the offer consideration from 0.26 to 0.29 ordinary shares, the Ashanti Board
announced on October 14, 2003 that it was recommending the improved final offer from AngloGold.

On October 28, 2003, the Government of Ghana, which held 16.8 percent of Ashanti's issued share capital, announced
its support for the AngloGold offer, as well as the principal terms of a stability undertaking which the Government of
Ghana intended to enter into with AngloGold. On December 12, 2003, AngloGold and the Government of Ghana
entered into the Government Support Deed, pursuant to which the Government of Ghana agreed, among other things,
to vote its Ashanti shares in favor of the Business Combination. Following the approval by the Parliament of Ghana of
the terms of the Stability Agreement on February 18, 2004, AngloGold and the Government of Ghana executed the
Stability Agreement.

The Business Combination was effected by means of a scheme of arrangement under Ghanaian law which required the
approval of not less than three-fourths of the votes cast by Ashanti shareholders present and entitled to vote either in
person or by proxy, and the confirmation of the High Court of Ghana. The extraordinary meeting of Ashanti’s
shareholders required to approve the scheme of arrangement took place on April 7, 2004.

On April 8, 2004, at the general meeting of AngloGold shareholders, the special resolution approving the change of
name of AngloGold to AngloGold Ashanti Limited was passed by the requisite majority of shareholders, while on the
same day, Ashanti announced that its shareholders had voted overwhelmingly in favor of the scheme of arrangements
for the business combination at a shareholder’s meeting held on April 7, 2004.

On April 26, 2004, AngloGold announced that on Friday, April 23, 2004, the High Court in Ghana confirmed the scheme
of arrangement, in terms of which AngloGold acquired the entire issued share capital of Ashanti Goldfields Company
Limited. The court order approving the scheme was lodged with the Registrar of Companies in Ghana on Monday,
April 26, 2004, thereby giving effect to the merger of the two companies and the name change to AngloGold Ashanti
Limited. The new company was listed on the Ghana Stock Exchange on Tuesday, April 27, 2004. Following the
Business Combination, Ashanti became a private company and a wholly-owned subsidiary of AngloGold.

Under the terms of the Business Combination, holders of Ashanti securities received for every Ashanti share or Ashanti
GDS, 0.29 ordinary shares or 0.29 ADSs of AngloGold. Each ADS represents one ordinary AngloGold share. On
April 26, 2004, AngloGold issued 38,400,021 ordinary shares to former Ashanti shareholders and 2,658,000 ordinary
shares under the Stability Agreement to the Government of Ghana. On June 29, 2004, AngloGold issued a total of
75,731 ordinary shares to former Ashanti warrant holders pursuant to the Business Combination.

The market value of the issued AngloGold shares was approximately $1,547 million, based on the average quoted value
of the shares of $37.62 two days before and after October 15, 2003, the date the terms of the transaction were
announced. The market value of the issued shares, together with the cash consideration paid to the Government of
Ghana as part of the Stability Agreement and cash consideration paid for outstanding options over Ashanti ordinary
shares of approximately $73 million (including transaction costs), gave rise to a total purchase price of approximately
$1,620 million.

Ashanti Goldfields Company Limited was delisted from the London, New York and Ghana stock exchanges in late April
2004. AngloGold Ashanti has performed a preliminary purchase price allocation based on independent appraisals and
valuations. The transaction was accounted for as a purchase business combination under US GAAP whereby
identifiable assets acquired and liabilities assumed were recorded at their fair market values as of the date of
acquisition. The excess of the purchase price over such fair value was recorded as goodwill and as such, the
acquisition resulted in goodwill of $182 million being recorded, relating mainly to the extended life of AngloGold Ashanti
by the Obuasi project in Ghana and enlarged negotiation base and presence in Africa by Ashanti operations. In
accordance with the provisions of SFAS142, goodwill was assigned to specific reporting units. The company’s reporting
units are generally consistent with the operating mines underlying the segments as described by note J “Segment
information” to the condensed consolidated financial statements contained in this interim report. Goodwill related to the
acquisition is non-deductible for tax purposes. The final purchase price allocation is not expected to vary significantly
from the preliminary allocation. The operations and financial condition of the interests in the companies and assets
acquired in Ashanti are included in the US GAAP condensed consolidated financial statements from April 26, 2004, the
effective date of the Business Combination.

Gold market

During much of the first half of 2004, the spot price of gold traded in a looser correlation to the US dollar/euro exchange
rate than had prevailed during the latter half of 2003. The sharp fall in the spot price in April of 2004 was brought about
in part by surprisingly positive US economic data, and consequent inflation fears, and in part by growing concerns in
commodity markets in general, triggered by the announcement of stricter credit controls in China to curb credit
expansion in that economy and slow the pace of growth that China has enjoyed in the past year.

However, during the latter part of the June 2004 quarter, and in July 2004, the spot price of gold regained a much closer
correlation to changes in the value of the US dollar against the euro. The major event in the currency markets this
quarter was the end of several months of US dollar strength against the euro, and a return to a weaker US currency.
The US dollar recovered by mid-May 2004 to $1.176 to the euro, an exchange rate last seen six months ago, before
renewed concerns with the US economy asserted themselves. The resumption of dollar weakness against the euro
starting in mid-May 2004 triggered new buying in gold as a currency hedge, lifting the spot price to almost $400 per
ounce by the end of the quarter, and to $408 per ounce during July 2004.

The June quarter of 2004 saw the US trade deficit rise further, and we believe there is little likelihood of policy change to
address the US budget deficit during a presidential election year. As the Federal Reserve signalled the end of the
current cycle of US monetary and interest rate policy by the first increase in the US discount rate in more than four
years, it is still unclear whether the change in interest rate policy will signal also the end of the three year cycle of dollar
retracement against the euro.

As has been the case throughout the rise in the gold price, investor and speculator interest in gold has been the direct
mover of the gold price, reflected specifically in changes in the open position in gold contracts on the New York
Commodities Exchange, or Comex. On Comex, the June quarter of 2004 saw the largest change in open positions in
several years, as the net long position of Comex fell from 22.6 million ounces in early April to little more than 7 million
ounces net long in mid-May 2004, reflecting net sales of gold by investors and speculators in that market of over 450
tonnes of gold over a period of six weeks. This increased selling activity resulted in a decrease in the spot price of gold
to about $371 per ounce in early May of 2004.

Since May of 2004, Comex has traded largely in a neutral zone, with small additions to the net long position. The June
quarter of 2004 closed with a Comex net long position of 9.7 million ounces or 301 tonnes. The gold price was
sustained by nett buying on Comex since the end of this quarter, but the market appears to have moved largely
sideways during July 2004.

The global picture of the gold market in 2003 was one in which physical supply continued to rise modestly (driven by
increases in scrap and official sector sales), whilst global offtake of gold in jewellery continued to slip (by 5.5 percent in
2003). The physical supply of over 900 tonnes of gold which was surplus to fabrication offtake in 2003 was squared by
net de-hedging, and by a sharp increase in assumed offtake of gold by investors and speculators. 2003 saw the largest
physical surplus of gold in the gold market in thirty years of supply and demand statistics on this market, and the market
in 2004 appears to indicate the same surplus trend.

For the second quarter of 2004, there was encouraging physical buying during the first half of the quarter which
experienced lower gold prices, but this offtake softened by the end of the quarter. In India, the end of the favorable
season for marriage (between December and May) saw lower levels of demand beginning in June 2004. In addition,
rupee weakness after Indian parliamentary elections in early May wiped out rupee gains in March and April which had
encouraged gold buying in India during those months, and the Indian market was further weakened as buyers were
discouraged by price volatility caused by currency movements.

The South African currency has again strengthened against the US dollar, gaining ground as a result against other
major currencies as well. Since the end of the quarter, the rand has returned to an exchange rate of R6 to the
US dollar, a level at which the currency traded five years ago. Whilst the Reserve Bank remains focused on an inflation
target to guide its interest rate and monetary policy, it would seem that little relief will come from official policy in
moderating the negative effects of the stronger currency on production and employment in the South African export
industries.

In 2004, the spot price opened at $415 per ounce in January and closed at $394 per ounce in June 2004, compared
with $346 per ounce in January 2003 and $345 per ounce in June 2003. The average spot price of gold was $401 per
ounce during the six months ended June 30, 2004, $52 per ounce, or 15 percent, higher than $349 per ounce, the
average spot price in the first six months of 2003. During the first six months of 2004, the highest spot price of gold was
$430 per ounce compared to a high of $389 per ounce for the same period in 2003. The lowest spot price of gold was
$388 per ounce during the six months ended June 30, 2004, 16 percent higher than $319 per ounce, the lowest spot
price of gold for the same period ended June 30, 2003.

Operating review

Presented in the table below is selected operating data for AngloGold Ashanti for the six-month periods ended June 30,
2004 and 2003. The operating data gives effect to the acquisitions and dispositions discussed above as of the effective
date of such acquisitions and dispositions:

Operating data for AngloGold Ashanti

Six months ended June 30,

2004 2003

Total gold production (000 oz)

2,725

2,836

Total cash cost ($/oz)

260 217

Total production cost ($/oz)

342

272

Production costs ($ million)

590

535

Capital expenditure ($ million)

234

128

Consolidated entities

227

117

Equity accounted joint ventures

Gold production

For the six months ended June 30, 2004, AngloGold Ashanti’s total gold production decreased by 111,000 ounces, or
about 4 percent, to 2.73 million ounces from 2.84 million ounces produced in the same period in 2003. Gold production
from operations located in South Africa decreased from 1,612,000 ounces produced in the six months to June 30, 2003,
to 1,529,000 ounces produced over the same period of 2004 mainly due to a decrease in production due to lower
grades and volumes mined at Tau Lekoa, TauTona, Mponeng and Savuka. Gold production in Mali decreased from
320,000 ounces produced in the six months to June 30, 2003, to 211,000 ounces over the same period of 2004 mainly
due to lower recovered grade and area mined at Morila. Gold production in the North America and Australia regions
decreased from 248,000 ounces and 226,000 ounces, respectively, produced in the six months to June 30, 2003, to
148,000 ounces and 184,000 ounces produced, respectively, over the same period of 2004, mainly due to the impact of
the sale of Jerritt Canyon effective June 30, 2003 and the closure of Union Reefs mine in October 2003. In Argentina,
gold produced at Cerro Vanguardia decreased from 109,000 ounces produced in the six months to June 30, 2003, to
82,000 ounces produced over the same period of 2004 mainly due to a change in the mining plan. Gold production from
Navachab in Namibia decreased from 39,000 ounces produced in the six months to June 30, 2003, to 31,000 ounces
produced over the same period of 2004.

Gold production in Tanzania at Geita increased by 107,000 ounces from 126,000 ounces in the six months ended
June 30, 2003 to 233,000 ounces produced over the same period during 2004. This was mainly due to the impact of the
additional 50 percent interest acquired in the mine during April 2004, as part of the completed AngloGold Ashanti
Business Combination on the production of the current half year when compared with 2003, as well as having accessed
higher grade mining areas. Operations situated in Ghana, Guinea and Zimbabwe acquired during April 2004 as part of
the completed AngloGold Ashanti Business Combination contributed 144,000 ounces of gold produced in the six
months ended June 30, 2004. Gold production from operations located in Brazil increased from 156,000 ounces
produced in the six months to June 30, 2003, to 163,000 ounces produced over the same period of 2004.

In the quarter ended June 30, 2004, gold production increased by 255,000 ounces, or 21 percent to 1,490,000 ounces
from 1,235,000 ounces produced during the quarter ended March 31, 2004. This increase was mainly due to the
contribution of operations acquired during April 2004 as part of the completed AngloGold Ashanti Business Combination
as well as a general increase in production in most operating regions, with the exception of Mali (at Morila and Sadiola).

Total cash cost and total production cost

Total cash costs for the six months ended June 30, 2004 was $260 per ounce, $43 per ounce, or 20 percent, higher
than the cash costs of $217 per ounce recorded in the same period in 2003. This change was mainly due to
substantially higher cash costs for the South African, Australian, Malian and Namibian operations in the six months
ended June 30, 2004, which increased by 19 percent, 14 percent, 60 percent and 37 percent respectively, when
compared to the same period in 2003. The increase in total cash costs at the South African and Australian operations
was mainly due to the strengthening of the South African rand and Australian dollar relative to the US dollar (based on

the average exchange rates of the rand against the US dollar of R6.67 and R8.03 and the Australian dollar against the
US dollar of A$1.35 and A$1.62, during the six months ended June 30, 2004 and 2003, respectively). The weaker US
dollar against all local currencies accounted for nearly $32 per ounce, or 57 percent, of the total increase in total cash
costs in the six months ended June 30, 2004 compared to the same period in 2003. Operations in Mali and Namibia
recorded higher total cash costs in the six months ended June 30, 2004 mainly due to increases in reagent costs, diesel
costs and mining contractor rates when compared to the same period in 2003.

Total cash costs for the three months ended June 30, 2004 were in line with total cash costs recorded in the quarter
ended March 31, 2004.

Total production costs for the six months ended June 30, 2004 were $342 per ounce, $70 per ounce, or 26 percent,
higher than the total production costs of $272 per ounce recorded in the same period of 2003. Total production costs per
ounce in the quarter ended June 30, 2004 increased by 1 percent compared to the quarter ended March 31, 2004.

Reconciliation of total cash costs and total production costs to the condensed consolidated financial
information

Total cash costs and total production costs are calculated in accordance with the guidelines of the Gold Institute industry
standard and are not US GAAP measures. The Gold Institute is a non-profit international association of miners,
refiners, bullion suppliers and manufacturers of gold products, which has developed a uniform format for reporting total
production costs on a per ounce basis. The standard was first adopted in 1996 and revised in November 1999.

Total cash costs, as defined in the Gold Institute industry standard are production costs as recorded in the statement of
operations, less offsite (i.e. central), general and administrative expenses (including head office costs charged to the
mines, central training expenses, industry association fees, refinery charges and social development costs) and
rehabilitation costs, plus royalties and employee termination costs.

Total cash costs as calculated and reported by AngloGold Ashanti include costs for all mining, processing,
administration, royalties and production taxes, as well as contributions from by-products, but exclusive of depreciation,
depletion and amortization, rehabilitation, employment severance costs, corporate administration costs, capital costs
and exploration costs. Total cash costs per ounce are calculated by dividing attributable total cash costs by attributable
ounces of gold produced. Total cash costs have been calculated on a consistent basis for all periods presented.

Total production costs, as defined in the Gold Institute industry standard, are total cash costs, as calculated using the
Gold Institute industry standard, plus amortization, depreciation and rehabilitation costs. Total production costs as
calculated and reported by AngloGold Ashanti include total cash costs, plus depreciation, depletion and amortization,
employee severance costs and rehabilitation and other non-cash costs. Total production costs per ounce are calculated
by dividing attributable total production costs by attributable ounces of gold produced. Total production costs have been
calculated on a consistent basis for all periods presented.

Total cash costs and total production costs should not be considered by investors in isolation or as alternatives to
production costs, net income/(loss) applicable to common stockholders, income/(loss) before income tax provision, net
cash provided by operating activities or any other measure of financial performance presented in accordance with US
GAAP or as an indicator of the Company’s performance. While the Gold Institute has provided definitions for the
calculation of total cash costs and total production costs, the calculation of total cash costs, total cash costs per ounce,
total production costs and total production costs per ounce may vary significantly among gold mining companies, and by
themselves do not necessarily provide a basis for comparison with other gold mining companies. However, the
Company believes that total cash costs and total production costs in total and per ounce are useful indicators to
investors and management as they provide:

•    an indication of profitability, efficiency and cash flows;
•    the trend in costs as the mining operations mature over time on a consistent basis; and
•    an internal benchmark of performance to allow for comparison against other mining companies.

A reconciliation of production costs as included in the Company’s unaudited condensed consolidated financial
information to total cash costs and to total production costs for each of the six months ended June 30, 2004 and 2003 is
presented below. In addition the Company has provided below details of the attributable ounces of gold produced in
total for each of those periods.

For the six months ended June 30,

(in $ millions, except as otherwise noted)

2004 2003

Production costs per condensed consolidated financial information

590

535

Plus:

Production costs of equity accounted joint ventures

Less:

Rehabilitation costs & other non-cash costs

(13)

(6)

Plus:

Inventory movement

33 9

Royalties

15 14

Related party transactions

(1)

26 10

Adjusted for:

Minority interests

(2)

(10) (6)

Non-gold producing companies and adjustments

(7)

Total cash costs

708 614

Plus:

Depreciation, depletion and amortization

213 155

Employee severance costs

5 1

Rehabilitation and other non-cash costs

13 6

Adjusted for:

Minority interests

(2)

(4) (4)

Non-gold producing companies and adjustments

(3)

(1)

Total production costs

932 771

Gold produced (000’ ounces)

(3)

2,725 2,836

Total cash costs per ounce

(4)

260 217

Total production costs per ounce

(4)

342 272

(1)

Relates solely to production costs as included in the Company’s condensed consolidated financial statements and has,
accordingly, been included in total production costs and total cash costs.

(2)

Adjusting for minority interest of items included in calculation, to disclose the attributable portions only.

(3)

Attributable production only.

(4)

In addition to the operational performances of the mines, total cash costs per ounce and total production costs per ounce are
affected by fluctuations in the currency exchange rate. AngloGold Ashanti reports total cash costs per ounce and total
production costs per ounce calculated to the nearest US dollar amount and gold produced in ounces.

Outlook

Production from the mines acquired from Ashanti as part of the Business Combination have been lower than expected
due to a combination of factors, including the embargo imposed by the Guinean government in connection with the mine
at Siguiri (see “Recent developments” below) and the effects of the continued under-capitalization of the Ashanti assets.
Based on present indications, it is anticipated that it will take four to six quarters for re-capitalization of the Ashanti
operations to begin to yield noticeable results. This would include addressing a number of issues, including a lack of
development, equipment, planning as well as crusher and mill optimization, which currently negatively impact on
production.

As a result, after concluding an in depth review of the Ashanti integration plan the Company now expects for the full
year of 2004, to produce approximately 6.1 million ounces at a total cash cost of about $260 per ounce, assuming an
exchange rate of R6.59 to the US dollar for the year. AngloGold Ashanti remains encouraged by the potential of these
acquired assets

Capital expenditures

Capital expenditure during the six months ended June 30, 2004 was $234 million compared with $128 million in the
same period of 2003. This $106 million, or 83 percent, increase is primarily the result of the following factors: first, the
$83 million increase in capital expenditure in South Africa, from $76 million spent in the six months to June 2003 to
$139 million for the same period in 2004, mainly due to the Moab Khotsong and TauTona projects, second, the
$15 million increase in capital expenditure in the Namibian region from $1 million recorded in the first six months of 2003
to $16 million spent in the six months ended June 30, 2004, mainly due to the purchase of a new mining fleet and, third,
capital projects in Ghana ($10 million) and Guinea ($14 million) as part of AngloGold Ashanti’s investment strategy
following the AngloGold Ashanti Business Combination completed in April 2004. The North America, Argentina, Brazil
and Australia regions recorded capital expenditures of $5 million, $6 million, $19 million and $13 million in the six
months to June 2004, compared to $16 million, $3 million, $13 million and $6 million, respectively, in the same period in
2003. Capital expenditures on other minor projects at $3 million, remained unchanged for the six months ended June
30, 2004 when compared to the same period in 2003.

Compared with the three months ended March 31, 2004, capital expenditure increased by approximately 79 percent in
the quarter ended June 30, 2004 mainly as a result of the factors discussed in the previous paragraph.

Comparison of financial performance on a segment basis for the six months ended June 30, 2004 and 2003

The Company produces gold as its primary product and does not have distinct divisional segments in terms of principal
business activity, but manages its business on the basis of different geographic segments. In the six months ended
June 30, 2004 the Company changed its presentation of segment information from a regional basis to operating
segments by country. Following the change in the composition of reportable segments and where applicable, the
Company has restated the corresponding items of segment information for all earlier periods presented. This
information is consistent with the information used by the Company’s chief operating decision makers in evaluating
operating performance of, and making resource allocation decisions among operations.

Revenues

Six months ended June 30,

2004

2003

(As restated)

US dollar,

millions Percentage

US dollar,

millions Percentage

Category of activity

Product sales

926

826

Interest, dividends and other

Total revenues

955

844

Geographical area data

South Africa

607

64%

550

65%

Argentina

Australia

10%

Brazil

Ghana

(1)

6% - -

Guinea

(1)

1 - - -

Mali

109

13%

Namibia

North America

10%

Tanzania

(2)

Zimbabwe

(1)

2 - - -

Corporate and other

Total revenues

1,077

991

Less: Equity method investments included in above

(122)

(12%)

(147)

(18%)

Total consolidated

955

100%

844

100%

(1)

Operations acquired as part of the Business Combination between AngloGold and Ashanti.

(2)

Segment information presented for the six months ended June 30, 2004 includes an additional 50 percent interest in the Geita mine in Tanzania
acquired as part of the Business Combination between AngloGold and Ashanti. Equity income from Geita is included for the period ended
April 26, 2004.

Assets

At June 30, 2004

At December 31, 2003

(As restated)

US dollar,

millions

Percentage

US dollar,

millions

Percentage

Geographical area data

Total segment assets

South Africa

3,379

37%

3,057

57%

Argentina

238

264

Australia

613

649

12%

Brazil

297

286

Ghana

(1)

2,228

25%

Guinea

(1)

228

Mali

338

(3)

4% 332

(3)

Namibia

North America

410

416

Tanzania

(2)

996

11%

171

(3)

Zimbabwe

(1)

Corporate and other

217

138

Total segment assets

8,979

100%

5,343

100%

(1)

Operations acquired as part of the Business Combination between AngloGold and Ashanti.

(2)

Segment information presented for the six months ended June 30, 2004 includes an additional 50 percent interest in the Geita mine in Tanzania

acquired as part of the Business Combination between AngloGold and Ashanti.

(3)

Investment held.

Comparison of financial performance for the six months ended June 30, 2004 and 2003

Revenues

Revenues from product sales and other income increased from $844 million in the first six months of 2003 to
$955 million in the comparable period in 2004, representing a 13 percent increase over the period. This was primarily
due to the increase in the gold price in 2004 as the average spot price of gold was $401 per ounce during the six
months ended June 30, 2004, $52 per ounce, or 15 percent, higher than $349 per ounce, the average spot price in the
first six months of 2003, partially offset by lower production as described above. The majority of product sales consisted
of US dollar-denominated gold sales.

Revenues from product sales from the South African operations increased by $49 million to $585 million over the six
months ended June 30, 2004 from $536 million realized in the same period in 2003, as a direct result of the higher gold
price. This was achieved despite a total decrease in gold production from operations located in South Africa by 82,000
ounces from 1,612,000 ounces produced in the six months to June 30, 2003, to 1,529,000 ounces produced over the
same period of 2004.

Revenues from product sales derived from operations situated in Ghana, Guinea and Zimbabwe acquired during
April 2004 as part of the completed AngloGold Ashanti Business Combination amounted to $55 million for the six
months ended June 30, 2004.

Revenues from product sales derived from Brazil increased by $4 million to $76 million over the six months ended June
30, 2004 from $72 million realized in the same period in 2003, mainly as a result of an increase in production.

Production costs

During the six month period ended June 30, 2004, AngloGold Ashanti incurred production costs of $590 million
representing an increase of $55 million, or 10 percent, over $535 million recorded for the comparable period in 2003.

This increase is primarily due to higher production costs in AngloGold Ashanti’s South Africa operations, which
increased by $40 million to $422 million in the first six months of 2004 from $382 million in the comparable period in
2003 mainly as a result of the strengthening of the South African rand relative to the US dollar. About 72 percent of
AngloGold Ashanti’s production costs were denominated in South African rands in the first six months of 2004.

Production costs recorded from operations situated in Ghana, Guinea and Zimbabwe acquired during April 2004 as part
of the completed AngloGold Ashanti Business Combination amounted to $37 million for the six months ended June 30,
2004.

Exploration costs

Exploration costs increased from $18 million in the six months ended June 30, 2003 to $20 million in the same period in
2004. During the six months ended June 30, 2004 a Representative Office was established in Beijing to seek
exploration and business opportunities in China.

Related party transactions

Related party transactions increased from $10 million recorded in the first six months of 2003 to $22 million over the
same period of 2004 mainly due to higher contract work generated by development activities.

General and administrative

General and administrative expenses increased from $23 million in the six months ended June 30, 2003 to $24 million in
the same period of 2004, mainly due to due to integration expenses following the AngloGold Ashanti Business
Combination and the strengthening of the South African rand relative to the US dollar.

Royalties

Royalties paid by AngloGold Ashanti increased from $6 million for the six months ended June 30, 2003, to $8 million
paid in the comparable period in 2004. Royalties are mostly calculated based on a percentage of revenues and are
payable to local governments.

Market development costs

Market development costs of $7 million recorded in the six months ended June 30, 2004, decreased by $1 million from
$8 million recorded in the same period in 2003.

Depreciation, depletion and amortization

Depreciation, depletion and amortization expense increased by $61 million to $182 million in the first six months of 2004
when compared to $121 million recorded in the same period in 2003. In South Africa, depreciation, depletion and
amortization expense increased by $43 million from $48 million incurred in the six months ended June 30, 2003 to
$91 million in the same period for 2004 mainly as a result of the strengthening of the South African rand relative to the
US dollar.

Depreciation, depletion and amortization expense recorded from operations situated in Ghana, Guinea and Zimbabwe
acquired during April 2004 as part of the completed AngloGold Ashanti Business Combination amounted to $19 million
for the six months ended June 30, 2004.

Depreciation, depletion and amortization expense recorded from the North American operations decreased by $8 million
from $28 million recorded during the first six months of 2003 to $20 million during the same period in 2004, mainly due
to the impact of the sale of Jerritt Canyon effective June 30, 2003.

Impairment of assets

In the six months ended June 30, 2004 the Company recorded an impairment of assets of $1 million relating to mining
assets and mineral rights in Australia. An impairment of $12 million was recorded in the six months ended June 30,
2003 relating to the abandonment of exploration activities in the Australian region.

Interest expense

Interest expense increased by $21 million from $9 million recorded in the six months ended June 30, 2003 to $30 million
in the same period in 2004. The increase in interest expense from 2003 was mainly due to finance charges paid on the
senior unsecured bonds issued in August 2003 (the corporate bond) and finance charges on the issuance of the
$1,000,000,000 2.375 percent convertible bonds in February 2004.

Accretion expense

In the six months ended June 30, 2004 accretion expense of $3 million was recorded compared with $3 million in the
same period in 2003, relating to the adoption of SFAS 143 “Accounting for Asset Retirement Obligations (ARO’s)”, with
effect from January 1, 2003 as described by note F “Accounting change” to the condensed consolidated financial
statements. Accretion relates to the unwinding of discounted future reclamation obligations to present values and
increases the reclamation obligations to its future estimated payout.

Employment severance cost

Employment severance costs increased to $5 million during the six months ended June 30, 2004 from $1 million in the
same period in 2003. Employment severance costs recorded for the six months ended June 30, 2004 relates to
retrenchments in the South African region reflecting mainly rationalization of operations at Great Noligwa, TauTona and
Savuka.

Profit/loss on sale of assets

The profit on sale of assets of $4 million recorded in the six months ended June 30, 2004 mainly comprises a profit on
sale of the Western Tanami Project in Australia to Tanami Gold NL. The profit on sale of assets of $7 million recorded in
the six months ended June 2003 related to the sale by AngloGold of its 70 percent interest in the Jerritt Canyon Joint
Venture in North America to Queenstake Resources USA Inc. and its wholly owned Amapari Project in North Brazil.

Non-hedge derivative loss/gain

A loss on non-hedge derivatives of $73 million was recorded in the six months ended June 30, 2004 compared to a gain
of $38 million in the same period in 2003 relating to the use of commodity instruments that are not classified as hedging
instruments for financial reporting purposes.

Income before equity income and income tax

For the foregoing reasons, in the six months ended June 30, 2004, income before equity income and income tax
amounted to a loss of $6 million compared to income of $143 million in the same period in 2003.

Equity income in affiliates

Equity income in affiliates decreased to $13 million in the six months ended June 30, 2004 from $36 million in the same
period in 2003, mainly as a result of the additional 50 percent interest acquired in Geita as part of the AngloGold Ashanti
Business Combination, which resulted in Geita being accounted for as a subsidiary of AngloGold Ashanti from April 26,
2004.

Deferred income and mining tax benefit/expense

Deferred income and mining tax expense decreased by $85 million from a net tax charge of $70 million recorded in the
first six months of 2003, to a net tax benefit of $15 million in the same period in 2004. Charges for current tax in the first
six months of 2004 amounted to $18 million compared to $49 million in the same period in 2003 reflecting the impact of
the South African tax formula to the decrease in the earnings of the operations in that country. Deferred tax charges in
the first six months of 2004 included tax benefits of $39 million compared with tax charges of $2 million related to non-
hedge derivatives during the same period of 2003.

Cumulative effect of accounting change

The Company adopted SFAS 143 “Accounting for Asset Retirement Obligations (ARO’s)” with effect from January 1,
2003. This resulted in a cumulative change in accounting policy effect of $3 million (net of provision for deferred
taxation) reflected in the six-month period ended June 30, 2003.

Net income

As a result of the factors detailed above, net income decreased by $84 million from $97 million in the first six months of
2003 to $13 million in the same period in 2004.

Liquidity and capital resources

Net cash provided by operating activities was $170 million in the first six months of 2004, $40 million, or 19 percent,
lower than $210 million for the comparable period in 2003. This is mainly the result of higher unit cash costs per ounce,
being partially offset by higher unit prices of gold over the first six months of 2004 compared with the same period in
2003. A detailed discussion of the movement in net income is included under “Comparison of financial performance for
six months ended June 30, 2004 and 2003” above.

Investing activities during the first six months of 2004 resulted in a net cash outflow of $337 million compared with an
outflow of $114 million in the first six months in 2003. This increase in cash outflows was the net result of acquisitions
and disposals of operations and the additions to property, plant and equipment. During the six months ended June 30,
2004 AngloGold Ashanti received cash of $5 million relating mainly to the disposal of its interests in the Western Tanami
Project in Australia and paid $126 million relating to the completed AngloGold Ashanti Business Combination in April
2004.

Additional cash outflows for investing activities during the six months ended June 30, 2004 relate to capital expenditures
of $227 million, compared to $117 million in the same period in 2003, for major capital projects, including Moab
Khotsong and TauTona in South Africa, and capital projects in Ghana and Guinea as part of AngloGold Ashanti’s
investment strategy following the AngloGold Ashanti Business Combination.

Net cash generated in financing activities over the first six months of 2004 amounted to an inflow of $221 million, a
increase of $433 million from an outflow of $212 million in the comparable period of 2003, comprising normal scheduled
loan repayments in terms of other loan facilities of $107 million, the repayment of the $400 million unsecured syndicated
loan facility (which was repayable in May 2004) amounting to $232 million, the repayment of $200 million under the
$600 million unsecured syndicated loan facility (repayable in February 2005) and the repayment of $139 million under a
revolving credit facility acquired as part of the AngloGold Ashanti Business Combination. Proceeds from loans during
the six months ended June 30, 2004 amounted to $1,019 million, which included $991 million raised through the
issuance of $1,000,000,000 2.375 percent convertible bonds in February 2004. The bonds, due in 2009 are convertible
into AngloGold American Depositary Shares (ADSs) and are guaranteed by AngloGold Ashanti. The Company made
dividend payments of $122 million (50 US cents per ordinary share) in the six months ended June 30, 2004 compared
with dividends of $190 million (82 US cents per ordinary share) paid in the same period in 2003, a 36 percent decrease.

As a result of the items discussed above, at June 30, 2004, AngloGold Ashanti had $542 million of cash and cash
equivalents compared with $479 million at December 31, 2003, an increase of $63 million, or 13 percent. At June 30,
2004, the Company had a total of $636 million available but undrawn under its credit facilities.

During 2004, approximately $337 million of AngloGold Ashanti’s debt is scheduled to mature. The $600 million
unsecured syndicated loan facility becomes due in February 2005. The amount drawn under this facility was $265
million as at June 30, 2004. The Company expects to finance the repayment of debt scheduled to mature in 2004 and
2005 from existing cash resources, cash generated from future operations, its existing debt facilities and, potentially,
future debt facilities or debt instruments.

Critical accounting policies

The preparation of AngloGold Ashanti’s financial statements in conformity with accounting principles generally accepted
in the United States of America require management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the year. For a full discussion of our critical
accounting policies, please see “Item 5: Operating and financial review and prospects – Critical accounting policies” in
our Annual Report on Form 20-F for the year ended December 31, 2003 which was filed with the United States
Securities and Exchange Commission (SEC) on March 19, 2004. In the six months ended June 30, 2004, the Company
has reassessed the useful life of on-reef Ore Reserve development expenditure as described below:

Ore Reserve development expenditure

The Company has reassessed the useful life of on-reef Ore Reserve development expenditure with effect from January
1, 2004, with a resulting change in the rate of amortization pertaining to such development on a prospective basis. This
adjustment in the rate of amortization pertaining to such development expenditure has been accounted for prospectively
as a change in estimate. The effect of this change in estimate on the results for the six months ended June 30, 2004 is
as follows:

Six months ended June 30, 2004

(in US Dollars, millions, except for share data)

Impact

Per basic

common

share

(cents)

Per diluted

common

share

(1)

(cents)

Income before income tax provision

Deferred income and mining tax

(9)

(4)

Net income

(1)

The calculation of diluted earnings per common share for the six months ended June 30,

2004 did not assume the effect of 10,566,356 shares issuable upon the exercise of
Convertible Bonds as their effects are anti-dilutive for this period.

Contractual obligations

In addition to the contractual obligations as disclosed in our Annual Report on Form 20-F for the year ended
December 31, 2003 the Company, through its wholly-owned subsidiary AngloGold Holdings plc., issued $1,000,000,000
2.375 percent convertible bonds in February 2004. The bonds, due in 2009 are convertible into AngloGold American
Depositary Shares (ADSs) and are guaranteed by AngloGold Ashanti. Expected cash outflow from the issuance of
these bonds amounts to $23.75 million per annum representing semi-annual coupon payments, with the last payment
due February 2009.

Heap leach inventory

The costs of materials currently contained on the leach pad are reported as a separate line item apart from inventory.
As at June 30, 2004, $99 million was classified as short term compared with $99 million as at December 31, 2003 as
AngloGold Ashanti expects the related gold to be recovered within twelve months. As at June 30, 2004, $22 million was
classified as long term compared with $7 million as at December 31, 2003.

Hedging overview

AngloGold Ashanti manages its revenue risk through an actively directed forward sales program. The board of directors
has given management a mandate to target a hedging level of no more than 30 percent of five years' gold production
spread over a ten-year period. In addition, management continues to have the latitude to put new forward-pricing
contracts in place where the gold price and operating circumstances make this necessary or prudent.

At June 30, 2004, the net delta hedge position of AngloGold Ashanti was at 12.5

(1)

million ounces at a spot price of gold

of $393.25 per ounce. This net delta volume was made up of an amount of 7 million ounces in the original AngloGold
Limited hedge, and 5.5 million ounces of hedge acquired as part of the AngloGold Ashanti Business Combination
completed in April 2004. The net delta hedge position reflects a reduction of 1.5 million ounces in the net size of the
combined AngloGold Ashanti hedges compared with the quarter ended March 31, 2004. The marked-to-market
valuation of this position at June 30, 2004 was negative $927 million, reflecting the increase in the size of the net delta
hedge following the AngloGold Ashanti Business Combination. The Company has continued to manage its hedge
positions actively, and to reduce overall levels of pricing commitments in respect of future production of gold.

(1)

Includes equity accounted joint ventures.

AngloGold Ashanti’s net delta open hedge position at June 30, 2004

At June 30, 2004, AngloGold Ashanti had outstanding the following forward-pricing commitments against future
production. The total net delta tonnage of the hedge of the combined company on this date was 12.5

(1)

million ounces

(at March 31, 2004, AngloGold Limited’s total net delta hedge tonnage was 8.16

(1)

million ounces; Ashanti Goldfields

Company Limited reported a total net delta tonnage of 5.8 million ounces. These figures include each company’s
attributable share of 50 percent in Geita). This is calculated using the Black-Scholes option formula with the ruling
market prices, interest rates and volatilities as at June 30, 2004.

The marked-to-market value of all hedge transactions making up the hedge positions was a negative $927 million at
June 30, 2004 (at March 31, 2004: AngloGold Limited reported a valuation of negative $652 million, Ashanti Goldfields
Company Limited reported a marked-to-market value of negative $562 million). These values were based on a gold
price of $393.25 per ounce, exchange rates of R/ $6.16 and A$/ $0.69 and the prevailing market interest rates and
volatilities at that date.

At July 28, 2004, the marked-to-market value of the hedge book was a negative $864 million based on a gold price of
$387.75 per ounce and exchange rates of R/ $6.2950 and A$/ $0.7006 and the prevailing market interest rates and
volatilities at the time.

These marked-to-market valuations are not predictive of the future value of the hedge position, or of the future impact
on the revenue, of the Company. The valuation represents the cost of buying all hedge contracts at the time of
valuation, at market prices and rates available at the time.

(1)

Includes equity accounted joint ventures.

AngloGold Ashanti’s hedge position as at June 30, 2004
The following table indicates AngloGold Ashanti’s gold hedge position at a weighted average settlement price as at June
30, 2004 (references in the table to "$" are to the US dollar, references to "A$" are to the Australian dollar and
references to "BRL" are to the Brazilian real):

Year

2004

2005

2006

2007

2008

2009-2013

Total

DOLLAR GOLD

Forward contracts

Amount (kg)

26,749

51,523

40,416

38,519

28,256

60,719

246,182

per

$326 $329 $341 $343 $360 $367 $346

Put options purchased

Amount (kg)

2,351

3,381

5,481

1,455

12,668

per

$349 $347 $355 $292

$345

*Delta

(kg)

600

808

1,286

2,779

Put options sold

Amount (kg)

7,900

2,799

4,354

15,053

per

$343 $345 $339

$342

*Delta

(kg)

987

462

720

2,169

Call options purchased

Amount (kg)

7,706

5,401

1,538

2,003

16,648

per

$343 $347 $370 $361

$349

*Delta

(kg)

7,170 4,407 1,107 1,553

14,237

Call options sold

Amount (kg)

17,977

34,094

22,208

19,714

20,977

44,026

158,996

per

$368 $345 $351 $342 $353 $368 $356

*Delta

(kg)

12,831 27,655 17,459 16,444 17,218 36,013

127,620

RAND GOLD

Forward contracts

Amount (kg)

933

Rand per kg

R116,335

Put options purchased

Amount (kg)

3,266

1,875

5,141

Rand per kg

R79,931

R93,602

R84,917

*Delta

(kg)

2,055

723

2,778

Put options sold

Amount (kg)

6,793

1,400

8,193

Rand per kg

R80,570

R88,414

R81,910

*Delta

(kg)

4,953

516

5,469

Call options purchased

Amount (kg)

9,126

Rand per kg

R80,414

*Delta

(kg)

2,896

Call options sold

Amount (kg)

2,340

3,745

5,621

746

2,986

8,958

24,396

Rand per kg

R110,375

R148,690

R131,389

R173,119

R187,586

R216,522

R171,444

*Delta

(kg)

1,395

313

1,570

3,416

A DOLLAR GOLD

Forward contracts

Amount (kg)

7,434

3,888

9,331

8,398

3,110

8,367

40,528

A$ per oz

A$548

A$663

A$664

A$640

A$656

A$635

A$631

Put options purchased

Amount (kg)

A$ per oz

*Delta

(kg)

Put options sold

Amount (kg)

467

A$ per oz

A$572

*Delta

(kg) 352

352

Call options purchased

Amount (kg)

3,110

6,221

3,732

3,110

6,221

22,394

A$ per oz

A$724

A$673

A$668

A$680

A$712

A$691

*Delta

(kg)

363 2,689 1,929 1,827 3,921 10,729

Call options sold

Amount (kg)

1,866

A$ per oz

A$566

*Delta

(kg) 601

601

Delta

(kg)

33,935 78,684 65,578 60,037 47,070 103,681 388,985

Total net gold:

Delta

(oz)

1,091,042 2,529,744 2,108,380 1,930,243 1,513,345 3,333,407 12,506,161

The Delta position indicated above reflects the nominal amount of the option multiplied by the mathematical
probability of the option being exercised. This is calculated using the Black-Scholes option formula with the ruling
market prices, interest rates and volatilities as at June 30, 2004. The delta positions indicated above include
positions from equity accounted joint ventures.

The following table indicates the Company’s currency hedge position at June 30, 2004

Year

2004

2005

2006

2007

2008

2009-2013

Total

RAND DOLLAR (000)

Forward

contracts

Amount

($)

Rand

per

Put options purchased

Amount ($)

Rand

per

*Delta ($)

Put options sold

Amount ($)

Rand

per

*Delta ($)

Call

options

purchased

Amount

($)

Rand

per

*Delta ($)

Call

options

sold

Amount

($)

75,000

Rand

per

R6.46

*Delta

($) 7,706

7,706

A DOLLAR (000)

Forward contracts

Amount ($)

55,237

$ per A$

$0.59

Put options purchased

Amount ($)

$ per A$

*Delta ($)

Put options sold

Amount ($)

$ per A$

*Delta ($)

Call

options

purchased

Amount

($)

$ per A$

*Delta ($)

Call

options

sold

Amount

($)

$ per A$

*Delta ($)

BRAZILIAN REAL (000)

Forward

contracts

Amount

($)

per

BRL

Put options purchased

Amount ($)

6,600

600

7,200

$ per BRL

BRL3.09

BRL3.38

BRL3.11

*Delta

($) 1,892

290

2,182

Put options sold

Amount ($)

5,100

600

5,700

$ per BRL

BRL2.79

BRL3.21

BRL2.83

*Delta

($) 220

214

434

Call

options

purchased

Amount

($)

per

BRL

*Delta ($)

Call options sold

Amount ($)

6,600

600

7,200

$ per BRL

BRL3.19

BRL3.55

BRL3.22

*Delta

($) 3,602

233

3,835

Recent developments

Embargo by the Government of Guinea for Siguiri Mine

On May 26, 2004, the Company announced that the Government of Guinea had placed an embargo on imports and
exports by AngloGold Ashanti’s Siguiri Mine. This was followed by a further announcement on June 14, 2004 in which
the Company advised that constructive discussions had commenced and that the supply of diesel fuel to the mine had
resumed. However, the embargo on the export of gold from Siguiri remains in place. AngloGold Ashanti is using its
best efforts to bring this undesirable state of affairs to a speedy and satisfactory resolution.

Three-day strike at Morila

On June 21, 2004, AngloGold Ashanti announced that talks between management and union representatives were
continuing, following the return to work by the workforce after a three day strike at Morila.

Termination – sale of Union Reefs Gold Mine

Following an announcement made on November 14, 2003 in which the Company advised that an agreement had been
entered into for the sale of Union Reefs Gold Mine and associated assets and tenements, AngloGold Ashanti advises
that the agreement has been terminated and related negotiations for the sale have ceased but that the Company
continues to explore other options for the sale of these gold mining assets.

AngloGold Ashanti acquires 29.9 % stake in Trans-Siberian Gold plc

On July 1, 2004 AngloGold Ashanti announced that it had entered into an agreement with Trans-Siberian Gold plc for
the acquisition of a 29.9 percent stake in the company through an equity investment of approximately ₤17.6m
(approximately $32 million). This first move into Russia allows AngloGold Ashanti the opportunity of establishing an
association with credible partners familiar with the environment.

Forward-looking statements

Except for historical information, there may be matters discussed in this interim report that are forward-looking
statements. In particular, the statements made under “Gold market” regarding the future performance of the gold and
currency markets, "Operating review – Outlook" regarding the future operating performance and “Liquidity and capital
resources” regarding sources of financing of future debt repayments are forward looking statements. Any such
statement is only a prediction and actual results, costs or events may differ materially. For a discussion of important
factors including, but not limited to, development of the Company’s business, the economic outlook in the gold industry,
expectations regarding gold prices and production, and other factors which could cause actual results, costs and events
to differ materially from such forward–looking statements, refer to AngloGold’s annual report on Form 20-F for the year
ended December 31, 2003 which was filed with the United States Securities and Exchange Commission (SEC) on
March 19, 2004.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has

duly caused this Current Report to be signed on its behalf by the undersigned, thereunto duly
authorized.

AngloGold Ashanti Limited

Date: July 14, 2005

By: /s/ C R B ULL

Name: C R Bull
Title: Company Secretary