GLOSSARY OF TERMS AND ABBREVIATIONS
Adjusted gross profit (loss):
Gross profit (loss) excluding
unrealised non-hedge derivatives and other commodity contracts.
Adjusted headline earnings (loss):
Headline earnings
(loss) excluding unrealised non-hedge derivatives, fair value
adjustments on the mandatory convertible bonds and the
option component of the convertible bonds, adjustments to
other commodity contracts and deferred tax thereon.
All injury frequency rate:
The total number of injuries and
fatalities that occurs per million hours worked.
All-in costs:
All-in costs are all-in sustaining costs plus additional
non-sustaining costs which reflect the varying costs of producing
gold over the life-cycle of a mine. Non-sustaining costs are
those costs incurred at new operations and costs related to
‘major projects’ at existing operations where these projects will
materially increase production.
All-in costs in dollars per ounce is arrived at by dividing the
dollar value of the sum of these cost metrics by the ounces of
gold sold.
All-in sustaining costs:
During June 2013 the World Gold
Council (WGC), an industry body, published a Guidance Note
on “all-in sustaining costs” metric, which gold mining companies
can use to supplement their overall non-GAAP disclosure.
“All-in sustaining costs” is an extension of the existing “cash
cost” metric and incorporates all costs related to sustaining
production and in particular recognising the sustaining capital
expenditure associated with developing and maintaining gold
mines. In addition, this metric associated with developing and
maintaining gold mines. In addition, this metric includes the
cost associated with corporate office structures that support
these operations, the community and rehabilitation costs
attendant with responsible mining and any exploration and
evaluation costs associated with sustaining current operations.
All-in sustaining $/oz is arrived at by dividing the dollar value
of the sum of these cost metrics, by the ounces of gold sold.
By-products:
Any products that emanate from the core process
of producing gold, including silver, uranium and sulphuric acid.
Capital expenditure:
Total capital expenditure on tangible
and intangible assets which includes stay-in-business and
project capital.
Adjusted
EBITDA: Operating profit (loss) before amortisation
of tangible and intangible assets, retrenchment costs at the
operations, impairment and derecognition of goodwill, tangible
and intangible assets, impairment of investments, profit (loss)
on disposal and derecognition of assets and investments, gain
(loss) on unrealised non-hedge derivatives and other commodity
contracts, write-off of stockpile and heap leach inventories to
net realisable value plus the share of associates’ EBITDA, less
profit (loss) from discontinued operations.
The adjusted EBITDA calculation is based on the formula
included in the revolving credit agreements for compliance with
the debt covenant formula as specified in the revolving credit
agreements.
Effective tax rate:
Current and deferred taxation as a
percentage of profit before taxation.
Equity:
Total equity plus the mandatory convertible bonds.
Where average equity is referred to, this is calculated by
averaging the figures at the beginning and the end of the
financial year.
Gain (loss) on non-hedge derivatives and other commodity
contracts:
Fair value changes on derivatives that are neither
designated as meeting the normal sale exemption under IAS 39, nor
designated as cash flow hedges and other commodity contracts.
Gold produced:
Refined gold in a saleable form derived from
the mining process.
Net debt:
Borrowings (excluding the Turbine Square Two
(Proprietary) Limited lease and the mandatory convertible
bonds; adjusted for the unamortised portion of the convertible
and rated bonds; and the fair value adjustment on the $1.25bn
bond) less cash.
Net capital employed:
Total equity adjusted for other
comprehensive income, actuarial gain (loss) and deferred
taxation plus interest-bearing borrowings, less cash and cash
equivalents and adjusted for capital expenditure incurred
on assets not yet in production. Where average net capital
employed is referred to, this is the average of the figures at the
beginning and the end of the financial year.
Net operating assets:
Tangible assets, current and non-
current portion of inventories, current and non-current trade
and other receivables (excluding recoverable tax, rebates,
levies and duties), less current and non-current trade, other
payables and deferred income (excluding unearned premiums
on normal sale extended contracts).
Operating cash flow:
Net cash inflow from operating activities
less stay-in-business capital expenditure.
Productivity:
An expression of labour productivity based on
the ratio of ounces of gold produced per month to the total
number of employees in mining operations.
Project capital:
Capital expenditure to either bring a new
operation into production; to materially increase production
capacity; or to materially extend the productive life of an asset.
INTEGRATED REPORT
2014
142