XML 126 R22.htm IDEA: XBRL DOCUMENT v3.20.1
Tangible Assets
 12 Months Ended
Dec. 31, 2019
Property, plant and equipment [abstract]  
Tangible Assets
TANGIBLE ASSETS
Figures in millions
Mine
development
costs

 
Mine
infra-
structure(2)

 
Mineral
rights
and
dumps

 
Exploration
and
evaluation
assets

 
Assets
under
construction

 
Land and
buildings(3)(4)

 
Total

US Dollars
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cost
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at 1 January 2017
5,943

 
4,576

 
919

 
5

 
450

 
82

 
11,975

Additions
 
 
 
 
 
 
 
 
 
 
 
 

- project capital
28

 
3

 
—

 
—

 
125

 
—

 
156

- stay-in-business capital
371

 
37

 
—

 
—

 
257

 
—

 
665

Disposals
(1
)
 
(20
)
 
—

 
—

 
—

 
—

 
(21
)
Transfers and other movements(1)
(168
)
 
(21
)
 
(27
)
 
—

 
(291
)
 
1

 
(506
)
Transfer to assets and liabilities held for sale
(785
)
 
(281
)
 
(7
)
 
—

 
(72
)
 
(3
)
 
(1,148
)
Translation
174

 
88

 
7

 
—

 
21

 
3

 
293

Balance at 31 December 2017
5,562


4,382


892


5


490


83


11,414

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accumulated amortisation and impairments
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at 1 January 2017
4,163

 
2,792

 
868

 
3

 
26

 
12

 
7,864

Amortisation for the year
553

 
272

 
3

 
—

 
—

 
1

 
829

Impairment and derecognition of
assets (5)
182

 
62

 
8

 
—

 
1

 
—

 
253

Disposals
(1
)
 
(20
)
 
—

 
—

 
—

 
—

 
(21
)
Transfers and other movements(1)
(326
)
 
(163
)
 
(27
)
 
—

 
—

 
—

 
(516
)
Transfer to assets and liabilities held for sale
(685
)
 
(169
)
 
(4
)
 
—

 
(1
)
 
—

 
(859
)
Translation
93

 
22

 
5

 
—

 
—

 
2

 
122

Figures in millions
Mine
development
costs

 
Mine
infra-
structure(2)

 
Mineral
rights
and
dumps

 
Exploration
and
evaluation
assets

 
Assets
under
construction

 
Land and
buildings(3)(4)

 
Total

Balance at 31 December 2017
3,979


2,796


853


3


26


15


7,672

Net book value at 31 December 2017
1,583


1,586


39


2


464


68


3,742

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cost
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at 1 January 2018
5,562

 
4,382

 
892

 
5

 
490

 
83

 
11,414

Additions
 
 
 
 
 
 
 
 
 
 
 
 

- project capital
2

 
—

 
—

 
—

 
175

 
—

 
177

- stay-in-business capital
294

 
20

 
3

 
—

 
149

 
1

 
467

Disposals
(5
)
 
(30
)
 
—

 
(1
)
 
—

 
(3
)
 
(39
)
Transfers and other movements(1)
60

 
(41
)
 
—

 
—

 
(270
)
 
1

 
(250
)
Translation
(239
)
 
(119
)
 
(7
)
 
—

 
(32
)
 
(5
)
 
(402
)
Balance at 31 December 2018
5,674


4,212


888


4


512


77


11,367

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accumulated amortisation and impairments
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at 1 January 2018
3,979

 
2,796

 
853

 
3

 
26

 
15

 
7,672

Amortisation for the year
397

 
233

 
2

 
1

 
—

 
1

 
634

Impairment and derecognition of assets(5)
—

 
104

 
—

 
—

 
—

 
—

 
104

Disposals
(5
)
 
(27
)
 
—

 
(1
)
 
—

 
(2
)
 
(35
)
Transfers and other movements(1)
(52
)
 
(153
)
 
—

 
—

 
—

 
—

 
(205
)
Translation
(135
)
 
(42
)
 
(6
)
 
—

 
1

 
(2
)
 
(184
)
Balance at 31 December 2018
4,184


2,911


849


3


27


12


7,986

Net book value at 31 December 2018
1,490


1,301


39


1


485


65


3,381

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cost
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at 1 January 2019
5,674

 
4,212

 
888

 
4

 
512

 
77

 
11,367

Additions
 
 
 
 
 
 
 
 
 
 
 
 

- project capital
43

 
—

 
—

 
1

 
281

 
14

 
339

- stay-in-business capital
208

 
25

 
1

 
2

 
188

 
—

 
424

Finance costs capitalised
—

 
—

 
—

 
—

 
6

 
—

 
6

Disposals
(1
)
 
(16
)
 
—

 
—

 
—

 
—

 
(17
)
Transfers and other movements(1)
(259
)
 
219

 
1

 
—

 
(489
)
 
(16
)
 
(544
)
Transfer to assets and liabilities held for sale
(660
)
 
(663
)
 
(9
)
 
—

 
(90
)
 
(9
)
 
(1,431
)
Translation
(4
)
 
(1
)
 
—

 
—

 
(3
)
 
—

 
(8
)
Balance at 31 December 2019
5,001

 
3,776

 
881

 
7

 
405

 
66

 
10,136

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accumulated amortisation and impairments
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at 1 January 2019
4,184

 
2,911

 
849

 
3

 
27

 
12

 
7,986

Amortisation for the year
392

 
215

 
1

 
1

 
—

 
—

 
609

Impairment and derecognition of assets(5)
243

 
172

 
—

 
—

 
90

 
—

 
505

Disposals
(1
)
 
(15
)
 
—

 
—

 
—

 
—

 
(16
)
Transfers and other movements(1)
(455
)
 
(53
)
 
1

 
—

 
(3
)
 
(12
)
 
(522
)
Transfer to assets and liabilities held for sale
(488
)
 
(422
)
 
(5
)
 
—

 
(88
)
 
—

 
(1,003
)
Translation
(9
)
 
(5
)
 
—

 
—

 
(1
)
 
—

 
(15
)
Balance at 31 December 2019
3,866

 
2,803

 
846

 
4

 
25

 
—

 
7,544

Net book value at 31 December 2019
1,135

 
973

 
35

 
3

 
380

 
66

 
2,592

(1) 
Transfers and other movements include amounts from deferred stripping, change in estimates of decommissioning assets, asset reclassifications and derecognition of assets.
(2) 
Included in the amounts for mine infrastructure are assets held under finance leases with a net book value of nil (2018: $45m; 2017: $56m).
(3) 
Included in the amounts for land and buildings are assets held under finance leases with a net book value of nil (2018: $3m; 2017: $6m).
(4) 
Assets of $9m (2018: $10m; 2017: $11m) have been pledged as security.
(5) 
Impairment and derecognition of assets is assessed as follows:

Impairment calculation assumptions as at 31 December 2019 - goodwill, tangible and intangible assets
Management assumptions for the value in use of tangible assets and goodwill include:
•
the gold price assumption represents management’s best estimate of the future price of gold. A long-term real gold price of $1,300/oz (2018: $1,239/oz) is based on a range of economic and market conditions that will exist over the remaining useful life of the assets.
Annual life of mine plans take into account the following:
•
proved and probable Ore Reserve;
•
value beyond proved and probable reserves (including exploration potential) determined using the gold price assumption referred to above;
•
In determining the impairment for each cash generating unit, the real pre-tax rate was derived from the weighted average cost of capital (WACC) using the Capital Asset Pricing Model (CAPM) to determine the required return on equity with risk factors consistent with the basis used in 2018. At 31 December 2019, the derived group WACC was 8.1% (real post-tax) which is 20 basis points lower than in 2018 of 8.3%, and is based on the industry average capital structure of the major gold companies considered to be appropriate peers. In determining the WACC for each cash generating unit, sovereign and mining risk factors are considered to determine country specific risks. In certain instances, a specific risk premium was added to large projects being undertaken or the turnaround nature of a specific mine to address uncertainties in the forecast of the cash flows;
•
foreign currency cash flows translated at estimated forward exchange rates and then discounted using appropriate discount rates for that currency;
•
cash flows used in impairment calculations are based on life of mine plans which range from 1 year to 39 years; and
•
variable operating cash flows are increased at local Consumer Price Index rates.

Impairments and derecognitions of tangible assets

For the year ended 31 December, the following impairments and derecognitions of tangible assets were recognised:
Figures in millions - US Dollars
2019 (1)

2018

2017

First Uranium - Mine Waste Solutions
89

93

13

TauTona
—

—

79

Kopanang
—

—

35

Surface Operations
18

1

9

Moab Khotsong
—

—

112

Mponeng
384

4

2

Covalent
11

—

—

Obuasi
—

5

—

Siguiri
2

—

—

AGA Mineração

1

—

—

Other
—

1

3

 
505

104

253


(1) Includes impairment of the South African asset disposal group, measured at fair value less costs to sell and disclosed in Discontinued operations. Refer to note 9.

Impairment of cash generating units

The group reviews and tests the carrying value of its mining assets when events or changes in circumstances suggest that the carrying amount may not be recoverable.

On 12 February 2020, AngloGold Ashanti announced the sale of its remaining South African producing assets and related liabilities to Harmony Gold Mining Company Limited for cash and deferred payments with expected proceeds of around $300m, subject to conditions. The South African assets were accordingly transferred to held for sale and written down to fair value less cost to sell. Refer to note 9.

Cash generating units with marginal headroom

Based on an analysis carried out by the group in 2019, the carrying value and value in use of the most sensitive cash generating unit (CGU) are:
Figures in millions - US Dollars
Carrying value

Value in use

Kibali (1)(2)
1,506

1,628

 




    

(1) It is estimated that a decrease of the long-term real gold price of $1,300/oz by 4.2%, would cause the receivable amount of Kibali to equal its carrying amount. The sensitivity analysis has been provided on the basis that the key assumption changes without a change in the other assumptions. However, for a change in each of the assumptions used, it is impracticable to disclose the consequential effect of changes on the other variables used to measure the recoverable amount because these assumptions and others used in impairment testing are inextricably linked.

(2) Equity accounted investment included in investments in associates and joint ventures in the Statement of Financial Position.