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TANGIBLE ASSETS
 12 Months Ended
Dec. 31, 2020
Property, plant and equipment [abstract]  
TANGIBLE ASSETS TANGIBLE ASSETS
Figures in millionsMine
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 20185,562 4,382 892 5 490 83 11,414 
Additions
- project capital2 — — — 175 — 177 
- stay-in-business capital294 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 20185,674 4,212 888 4 512 77 11,367 
Accumulated amortisation and impairments
Balance at 1 January 20183,979 2,796 853 3 26 15 7,672 
Amortisation for the year397 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 20184,184 2,911 849 3 27 12 7,986 
Net book value at 31 December 20181,490 1,301 39 1 485 65 3,381 
Cost
Balance at 1 January 20195,674 4,212 888 4 512 77 11,367 
Additions
- project capital43 — — 1 281 14 339 
- stay-in-business capital208 25 1 2 188 — 424 
Disposals(1)(16)— — — — (17)
Transfers and other movements(1)
(259)219 1 — (489)(16)(544)
Transfer to non-current assets and liabilities held for sale(660)(663)(9)— (90)(9)(1,431)
Finance costs capitalised— — — — 6 — 6 
Translation(4)(1)— — (3)— (8)
Balance at 31 December 20195,001 3,776 881 7 405 66 10,136 
Accumulated amortisation and impairments
Balance at 1 January 20194,184 2,911 849 3 27 12 7,986 
Amortisation for the year392 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 non-current assets and liabilities held for sale(488)(422)(5)— (88)— (1,003)
Translation(9)(5)— — (1)— (15)
Balance at 31 December 20193,866 2,803 846 4 25 — 7,544 
Net book value at 31 December 20191,135 973 35 3 380 66 2,592 
Figures in millionsMine
development
costs
Mine
infra-
structure(2)
Mineral
rights
and
dumps		Exploration
and
evaluation
assets		Assets
under
construction
Land and
buildings(3)(4)
Total
Cost
Balance at 1 January 20205,001 3,776 881 7 405 66 10,136 
Additions
- project capital64 — — 1 246 20 331 
- stay-in-business capital180 8 1 — 179 2 370 
Finance costs capitalised (5)
— — — — 17 — 17 
Disposals(1)(26)— — — — (27)
Transfers and other movements(1)
(1,076)186 (699)2 (320)24 (1,883)
Translation157 9 5 (1)6 — 176 
Balance at 31 December 20204,325 3,953 188 9 533 112 9,120 
Accumulated amortisation and impairments
Balance at 1 January 20203,866 2,803 846 4 25 — 7,544 
Amortisation for the year345 179 5 1 — — 530 
Disposals(1)(25)— — — — (26)
Transfers and other movements(1)
(1,208)(33)(699)— — — (1,940)
Translation117 6 4 — 1 — 128 
Balance at 31 December 20203,119 2,930 156 5 26 — 6,236 
Net book value at 31 December 20201,206 1,023 32 4 507 112 2,884 
(1)Transfers and other movements include amounts from deferred stripping, changes in estimates of decommissioning assets, asset reclassifications, derecognition of assets and initial recognition of joint operation share of property, plant and equipment.
(2)Included in the amounts for mine infrastructure are assets held under finance leases with a net book value of nil (2019: nil; 2018: $45m).
(3)Included in the amounts for land and buildings are assets held under finance leases with a net book value of nil (2019: nil; 2018: $3m).
(4)Assets of $7m (2019: $9m; 2018: $10m) have been pledged as security.
(5)The weighted average capitalisation rate used to determine the amount of borrowing costs eligible for capitalisation was 4.52% (2019: 5.6%; 2018: nil)
(6)Impairment and derecognition of assets is assessed as follows:

Impairment calculation assumptions as at 31 December 2020 - 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 $1,450/oz (2019: $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 Ore Reserve (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 2019. At 31 December 2020, the derived group WACC was 9.1% (real post-tax) which is 100 basis points higher than in 2019 of 8.1%, 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 6 years to 26 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, impairments and derecognitions of tangible assets were recognised for the following cash generating units (CGU's):
Figures in millions - US Dollars
2019 (1)
2018
First Uranium - Mine Waste Solutions 89 93 
Surface Operations18 1 
Mponeng384 4 
Covalent11 — 
Obuasi— 5 
Siguiri2 — 
AGA Mineração 1 — 
Other— 1 
505 104 
No impairments were recognised in 2020.

(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.

Cash generating units with marginal headroom

Based on an analysis carried out by the group in 2020, the carrying value and value in use of the most sensitive CGU are:
Figures in millions - US DollarsCarrying valueValue in use
Kibali (1)(2)
1,482 1,614 
    

(1) It is estimated that a decrease of the long-term real gold price of $1,450/oz by 4.4%, would cause the recoverable amount of Kibali to equal its carrying amount using a real post-tax weighted average cost of capital (WACC) discount rate of 12.5% (2019: 9.7%). 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.