Date: January 30, 2004 

Introduction 

The following is a summary of the Group's financial and operating performance for the year ended December 31, 2003 prepared in accordance with US GAAP. This summary also includes condensed consolidated financial information as of, and for the years ended, December 31, 2003 and 2002 prepared in accordance with US GAAP. 

On January 30, 2004, AngloGold issued its results for the quarter and year ended December 31, 2003 prepared in accordance with IFRS and published its report, including condensed consolidated financial information prepared in accordance with IFRS, for those periods. This information has been submitted to the US Securities and Exchange Commission on Form 6-K. 

Operating review 

Presented in the table below is selected operating data for AngloGold for the years ended December 31, 2003 and 2002.

For the year ended December 31, 2003, AngloGold's total gold production decreased by 323,000 ounces, or about 5 percent, to 5.62 million ounces from 5.94 million ounces produced in 2002. This was mainly the result of a decrease in production as a result of lower grades in all of the operating regions when compared to 2002, including: the South African operations (2003: 3,281,000 oz; 2002: 3,412,000 oz), the East and West African operations (2003: 981,000 oz; 2002: 1,085,000 oz), the North American operations (2003: 390,000 oz; 2002: 462,000 oz), the South American region (2003: 532,000 oz; 2002: 478,000 oz) and the Australian region (2003: 432,000 oz; 2002: 502,000 oz) in 2003. 

In the three months ended December 31, 2003, gold production of 1,389,000 ounces was in line with gold produced of 1,390,000 ounces during the quarter ended September 30, 2003.

Total cash costs for the three months ended December 31, 2003 also increased by 5 percent compared to the quarter ended September 30, 2003 mainly as a result of exchange rate movements as discussed in the previous paragraph as well as lower gold production at some South African operations (Kopanang, Savuka, Mponeng), lower production and higher mining contractor costs at Morila and higher labor costs at Serra Grande as a result of the annual union negotiation in November 2003, energy costs increases and lower gold production. 

Total production costs per ounce increased from $218 per ounce in 2002 to $288 per ounce recorded in 2003. Total production costs per ounce in the quarter ended December 31, 2003 also increased by 9 percent compared to the quarter ended September 30, 2003.

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 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 total cash costs by 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 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 total production costs by ounces of gold produced. Total production costs have been calculated on a consistent basis for all periods presented.

• 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.
  

Compared with the three months ended September 30, 2003, capital expenditure increased by approximately 82 percent in the quarter ended December 31, 2003. 

Overview of 2003 

Commenting on the 2003 results, Russell Edey, AngloGold's Chairman, and Bobby Godsell, AngloGold's CEO said: "For the year ended December 31, 2003, AngloGold's performance was affected by a combination of stronger currencies in most of the company's operating regions as well as lower ore grade in several of these regions. Unit cash costs were $68 per ounce higher, at $229 per ounce, for the same reasons. 

There has been substantial progress made in the merger of AngloGold and Ashanti, and we are well on track to create what will be the leading African gold company and one which will effectively compete with its peers globally. 

On December 12, 2003, we announced that AngloGold had entered into a support agreement with the Government of Ghana in its role as holder of 16.9 percent of the share capital of Ashanti Goldfields Company and that it had agreed the terms of a stability agreement concerning certain fiscal and regulatory undertakings, in the Government's role as regulator of Ashanti. 

Once the required approvals of the Parliament and Government of Ghana have been received, the scheme documents will be finalised and distributed to Ashanti shareholders and we expect the transaction to close during April 2004. 

Looking ahead to the rest of 2004 and following the completion of this deal during April, we are anticipating that gold production will increase from 5.6 million ounces to approximately 6.6 million ounces. Assuming an exchange rate of R7.00 to the US dollar, we are expecting unit cash costs to rise to $238 per ounce and capital expenditure to increase to $589 million." 

Outlook for 2004 

AnlgoGold anticipates gold production of 6.6 million ounces of gold for the full year 2004, assuming the completion of the Ashanti deal during April 2004. Anticipated total cash cost of $238 per ounce and capital expenditure of $589 million. 

Financial review 

Revenues from product sales and other income increased from $1,799 million in 2002 to $2,062 million in 2003, representing a 15 percent increase over the period. This was primarily due to the increase in the gold price in 2003 as the average spot price of gold was $363 per ounce during 2003, $53 per ounce, or 17

Production costs increased from $910 million in 2002 to $1,206 million in 2003, which represents a $296 million, or 33 percent, increase. Higher production costs were mainly the result of substantially higher production costs at the South African operations of $782 million in 2003, compared with $534 million in 2002. This increase of $248 million, or 46 percent, was primarily due to the strengthening of the South African rand relative to the US dollar. About 65 percent of AngloGold's production costs were denominated in South African rands in 2003. Production costs recorded in the three months ended December 31, 2003 of $297 million were in line with production costs of $309 million recorded in the quarter ended September 30, 2003. 

Exploration costs increased by $12 million, or 43 percent, from $28 million in 2002 to $40 million in 2003, mainly as a result of increased levels of exploration in Mali and Tanzania in the East and West African region, Brazil and Peru in the South American region as well as exploration drilling in the Australian region. 

Related party transactions in 2003 amounted to $36 million compared with $40 million recorded in 2002 a decrease of $4 million, or 10 percent. An amount of $10 million was included under related party transactions for 2002 relating to the settlement by AngloGold of a claim in respect of an alleged breach of contract. 

General and administrative expenses increased by $13 million, or 43 percent, from $30 million in 2002 to $43 million in 2003, mainly as a result of the strengthening of the South African rand relative to the US dollar, which negatively impacted on general and administrative expenses as approximately 86 percent of these costs are South African rand denominated. 

Depreciation, depletion and amortization expense decreased by $12 million, or 4 percent, to $321 million in 2003 when compared to $333 million recorded in 2002. Lower depreciation, depletion and amortization charges were recorded in the South African, East and West African, North American and Australian operations ($118 million, $70 million, $47 million and $30 million, respectively, in 2003 compared with $120 million, $73 million, $58 million and $33 million, respectively, in 2002). The South American operations recorded an increase in depreciation, depletion and amortization expense during 2003 to $56 million compared to $49 million in 2002. This was mainly due to the full year impact of the additional 46.25 percent interest acquired during July 2002 in the Cerro Vanguardia mine in Argentina. 

An impairment of assets of $78 million of which $59 million relates to the Savuka operations in South Africa and $9 million to the abandonment of exploration activities in the Australian region was recorded in 2003. The Savuka assets were impaired as a result of the lower rand gold price achieved by the South African operations during 2003 when compared with 2002. No impairment of assets was recorded in 2002. 

Interest expense increased by $5 million from $44 million recorded in 2002 to $49 million in 2003, an 11 percent increase. The increase in interest expense from 2002 was mainly due to finance charges paid on the senior unsecured bonds issued in August 2003, being partly offset by lower prevailing LIBOR rates to which most of AngloGold's debt is pegged. 

Accretion expense of $2 million was recorded in 2003 relating to the adoption of SFAS 143 "Accounting for Asset Retirement Obligations (ARO's)", with effect from January 1, 2003. Accretion relates to the unwinding of discounted future reclamation obligations to present values and increases the reclamation obligations to its future estimated payout.

A gain on non-hedge derivatives of $119 million was recorded in 2003 compared to a gain of $73 million in 2002. 

In 2003, income before equity income and income tax amounted to $411 million compared to $430 million in 2002. 

Deferred income and mining tax expense increased by $84 million from a net tax charge of $62 million recorded in 2002, which included tax credits of $50 million relating to the disposal of the Free State assets, to a net tax charge of $146 million in 2003. The Free state assets were disposed of at book value, effective January 1, 2002. Deferred tax charges in 2003 included tax charges of $40 million related to non-hedge derivatives and tax benefits of $26 million related to asset impairments compared with tax benefits related to non-hedge derivatives of $5 million and $nil million related to asset impairments, respectively, during 2002. 

The cumulative effect of a change in accounting policy on adoption of SFAS 143 "Accounting for Asset Retirement Obligations (ARO's)" with effect from January 1, 2003 amounts to $3 million (net of provision for deferred taxation). 

Net income applicable to common stockholders decreased by $109 million, or 31 percent, to $247 million in 2003 from $356 million recorded in 2002. Net income applicable to common stockholders at $77 million, remained unchanged for the three months ended December 31, 2003 when compared with the three months ended September 30, 2003. 

Net cash provided by operating activities during 2003 amounted to $453 million compared with $584 million in 2002, a decrease of $131 million, or 22 percent. 

In 2003, AngloGold used $307 million in investing activities comprising mainly of payments for capital expenditure of $363 million and received cash of $56 million relating to the disposal of AngloGold's interests in East Africa Gold Mines, Randgold Resources Limited and the Queenstake investment held by North America. Cash used in financing activities of $107 million in 2003 included normal scheduled loan repayments of $135 million, a $30 million repayment on the $400 million unsecured syndicated loan facility which becomes due in May 2004 and proceeds from loans totaling $362 million, which included $270 million raised through the issuance of senior unsecured bonds in August 2003. The bonds have a total principal amount of R2 billion, carry a fixed semi-annual coupon of 10.5 percent and mature on August 28, 2008. Total dividends paid amounted to $314 million in 2003. The effect of exchange rate changes on cash was a positive $53 million during 2003. 

As a result of the items discussed above, at December 31, 2003, AngloGold had $505 million of cash and cash equivalents compared with $413 million at December 31, 2002, an increase of $92 million, or 22

AngloGold declared a final dividend of 335 South African cents (approximately 48 US cents) per ordinary share for the year ended December 31, 2003. During 2004, approximately $351 million of AngloGold's debt is scheduled to mature. The $400 million unsecured syndicated loan facility becomes due in May 2004. The amount drawn under this facility was $233 million as at December 31, 2003. As at December 31, 2003, AngloGold had contracted capital expenditures of $98 million related to capital projects. AngloGold expects to finance the repayment of debt scheduled to mature in 2004 and contracted capital expenditures from existing cash resources, cash generated from future operations, its existing debt facilities and, potentially, future debt facilities or debt instruments.

The costs of materials currently contained on the leach pad is reported as a separate line item apart from inventory. As at December 31, 2003, $101 million was classified as short term compared with $nil million as at December 31, 2002 as AngloGold expects gold to be recovered within twelve months. As at December 31, 2003, $7 million was classified as long term compared with $79 million as at December 31, 2002.

The primary mover in gold continues to be strong speculator and investor interest in the metal, driven by a number of fundamental economic circumstances. Amongst these circumstances is the anticipated further decline in the value of the US dollar. These same influences have pushed up prices of base metals and other commodities, although the extent of investor interest in precious metals is relatively high compared with the rest of the metals sector. The fourth quarter of 2003 again saw higher levels of open positions on the New York Commodity Exchange (Comex), reaching an all-time high of 19 million ounces, or almost 600 tonnes, net long in futures and options contracts combined. 

During the final quarter of 2003, the spot gold price tracked the US dollar/euro exchange rate particularly closely. This exchange rate is valuable as an indicator rather than a determinant of gold price direction, at least in part, because many of the same economic fundamental issues affect the dollar as they do the gold market. 

Investor and speculator interest in gold remained on the rise throughout most of 2003, reflected particularly in the recorded statistics of Comex. Overall open interest and the net open position on that exchange are both at all-time high levels since the exchange commenced trading gold over twenty years ago. 

Of particular interest during the final quarter of 2003 was the launch by the World Gold Council of the Gold Bullion Securities (GBS) product on the London Stock Exchange. The GBS is a gold-backed fund enabling institutional and private investors to invest directly in gold through a traded instrument. This product followed the launch of a similar fund in Australia earlier in 2003, and the World Gold Council continues to work on similar products to offer to investors in other important financial markets elsewhere. This new product very quickly took in purchases amounting to 25 tonnes of bullion, and has since established two-way liquidity in the London market. 

Physical demand for gold continued to suffer in the face of a rising gold price. Whilst gold offtake in jewellery for 2003 was off by 7 percent year-on-year, in the second half of 2003 alone, demand fell by over 11 percent compared with 2002. India responded immediately to higher prices, and much of the expected seasonal

However, many other gold jewellery markets have also declined in this period. Lower levels of producer de- hedging added to the reduced demand. After six quarters of material levels of de-hedging, the second half of 2003 saw significantly less activity in this area, notwithstanding the announcement late in 2003 by Barrick Gold Corporation of its intention to cease new hedges, and to reduce its hedge book. Only a substantial increase in implied net investment demand helped to balance the physical market. 

On the supply side, mine production for 2003 was just slightly more than that in 2002. However, scrap sales increased again, and at a little less than 1,000 tonnes for 2003, now make up almost a quarter of the supply of gold to the current market. Central bank sales of 591 tonnes in 2003 reached their highest level in a decade, but there was little negative response in the markets to this level of selling. 

The physical market remains important as it provides a floor of support when investment interest weakens and prices soften. Whilst making every effort to encourage investor demand for gold in the current market, attention should also be paid to the health of the wider physical market in the medium and longer term. 

The Washington Agreement on sales of gold by European central banks comes to an end in less than nine months' time. Public statements by a number of senior European central bank officials at the Dubai meetings of the International Monetary Fund in 2003 indicate that there is little doubt that the agreement will be renewed, and good reason to expect that the behaviour of the signatories to this agreement will follow the precedent of the orderly and responsible behaviour of these banks over the past four years. 

Currency markets were again active in the last quarter of 2003. The euro gained 11 percent against the US dollar within the quarter, continuing the trend for this year in which the US dollar has lost 22 percent against the European currency. Whilst all the evidence points to a strong recovery in the US economy running well into 2004, any benefit that this might have for the US currency is negated by the record levels of budget and current account deficits currently prevailing in the United States, and market commentators and analysts expect the US currency to weaken in the year ahead up to a range of $1.35 - $1.40 to the euro. One element that might temper further dollar weakness would be real resistance from European monetary authorities to further strengthening of the euro. This occurred to a degree in mid-January 2004, leading swiftly to a correction in the exchange rate and the weakening in the euro from $1.29 back to $1.25. However, there are no signs yet of any change to the weaker trend for the US currency. 

The rand has seen as much movement as the European currency, but greater volatility. Whilst the first three quarters of 2003 saw a continuation of the rand strengthening against the US dollar, this strength reversed in the final quarter of 2003. During this fourth quarter, the South African currency lost more than 20 percent against the US dollar between its strongest point of R6.07, to its weakest point of R7.28 to the US dollar. 

In just over two years, we have seen the rand first lose almost 40 percent in value against the US dollar, and thereafter recover all of that and more to strengthen by almost 60 percent against its end-2001 exchange rate. 

The rand has strengthened materially more against the US dollar than have either the euro or the Australian dollar, and this occurred particularly during the period in which South African interest rates were either rising sharply, or were at their highs between October 2002 and June 2003. The recent reversal in the direction of the rand value could reflect the end of the impact of high interest rates, as 2003 has seen the South African

In 2003, the spot price opened at $346 per ounce in January and closed at $415 per ounce in December, compared with $279 per ounce in January 2002 and $348 per ounce in December 2002. The average spot price of gold was $363 per ounce during 2003, $53 per ounce, or 17 percent, higher than $310 per ounce, the average spot price in 2002. During 2003, the highest spot price of gold was $417 per ounce compared to a high of $354 per ounce for 2002. The lowest spot price of gold was $319 per ounce during 2003, 15 percent higher than $277 per ounce, the lowest spot price of gold for 2002. 

Hedging overview 

AngloGold 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 December 31, 2003, the net delta hedge position of AngloGold was at 8.59 million ounces, 1.69 million ounces, or 16 percent, lower than the net delta hedge position at 10.28 million ounces as at December 31, 2002. These figures reflect the ongoing reduction in forward price commitments of AngloGold. The marked- to-market valuation of this position at December 31, 2003 was negative $664 million.

At January 28, 2004, the marked-to-market value of the hedge book was a negative US$577.7 million based on a gold price of US$409.25 per ounce and exchange rates of R/US$7.04 and A$/US$0.7781 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 AngloGold. The valuation represents the cost of buying all hedge contracts at the time of valuation, at market prices and rates available at the time.