TIDMAGD
Report
for the quarter ended 31 March 2014
Production 1.06Moz improving 17% year-on-year and well ahead of 950Koz-1Moz
guidance
Total cash costs decrease 14% year-on-year to $770/oz, beating guidance of $800
/oz-$850/oz
All-in-sustaining cost (AISC) decreased by 22% year-on-year to $993/oz on lower
capex, cash costs and overhead costs
Adjusted headline earnings $119m, or 29 US cents per share
International operations see 34% rise in output to 765,000oz year-on-year, and
22% drop in AISC to $972/oz
South Africa production down 11% to 290,0000z year-on-year, while AISC improves
to $975/oz or 14%
Tropicana contributes 84,0000z at total cash cost of $495/oz; AISC of $694/oz
Kibali contributes 51,000oz at total cash cost of $538/oz; AISC of $572/oz
Net debt stable at $3.105bn
Cash flow from operating activities stable year-on-year at $350m, despite 21%
lower gold price
Quarter Year
ended ended ended ended
Mar Dec Mar Dec
2014 2013 2013 2013
US dollar / Imperial
Operating review
Gold
Produced - oz (000) 1,055 1,229 899 4,105
Price received 1 - $/oz 1,290 1,271 1,636 1,401
All-in sustaining cost 2 - $/oz 993 1,015 1,275 1,174
All-in cost 2 - $/oz 1,114 1,233 1,622 1,466
Total cash costs 3 - $/oz 770 748 894 830
Financial review
Adjusted gross profit 4 - $m 312 376 434 1,351
Gross profit - $m 296 404 434 1,445
Profit (loss) attributable to equity
shareholders - $m 39 (305) 239 (2,230)
- cents/share 10 (75) 62 (568)
Headline earnings (loss) - $m 38 (276) 259 78
- cents/share 9 (68) 67 20
Adjusted headline earnings 5 - $m 119 45 113 599
- cents/share 29 11 29 153
Dividends per ordinary share - cents/share - - 5 5
Cash flow from operating activities - $m 350 431 356 1,246
Capital expenditure - $m 274 477 512 1,993
Notes: 1. Refer to note C "Non-GAAP disclosure" for the definition.
2. Refer to note D "Non-GAAP disclosure" for the definition.
3. Refer to note E "Non-GAAP disclosure" for the definition.
4. Refer to note B "Non-GAAP disclosure" for the definition
5. Refer to note A "Non-GAAP disclosure" for the definition.
$ represents US dollar, unless otherwise stated.
Rounding of figures may result in computational discrepancies.
Certain statements contained in this document, other than statements of
historical fact, including, without limitation, those concerning the economic
outlook for the gold mining industry, expectations regarding gold prices,
production, cash costs, cost savings and other operating results, return on
equity, productivity improvements, growth prospects and outlook of AngloGold
Ashanti's operations, individually or in the aggregate, including the
achievement of project milestones, commencement and completion of commercial
operations of certain of AngloGold Ashanti's exploration and production
projects and the completion of acquisitions and dispositions, AngloGold
Ashanti's liquidity and capital resources and capital expenditures and the
outcome and consequence of any potential or pending litigation or regulatory
proceedings or environmental issues, are forward-looking statements regarding
AngloGold Ashanti's operations, economic performance and financial condition.
These forward-looking statements or forecasts involve known and unknown risks,
uncertainties and other factors that may cause AngloGold Ashanti's actual
results, performance or achievements to differ materially from the anticipated
results, performance or achievements expressed or implied in these
forward-looking statements. Although AngloGold Ashanti believes that the
expectations reflected in such forward-looking statements and forecasts are
reasonable, no assurance can be given that such expectations will prove to have
been correct. Accordingly, results could differ materially from those set out
in the forward-looking statements as a result of, among other factors, changes
in economic, social and political and market conditions, the success of
business and operating initiatives, changes in the regulatory environment and
other government actions, including environmental approvals, fluctuations in
gold prices and exchange rates, the outcome of pending or future litigation
proceedings, and business and operational risk management. For a discussion of
such risk factors, refer to AngloGold Ashanti's Form 20-F that was filed with
the United States Securities and Exchange Commission ("SEC") on 14 April 2014.
These factors are not necessarily all of the important factors that could cause
AngloGold Ashanti's actual results to differ materially from those expressed in
any forward-looking statements. Other unknown or unpredictable factors could
also have material adverse effects on future results. Consequently, readers are
cautioned not to place undue reliance on forward-looking statements. AngloGold
Ashanti undertakes no obligation to update publicly or release any revisions to
these forward-looking statements to reflect events or circumstances after the
date hereof or to reflect the occurrence of unanticipated events, except to the
extent required by applicable law. All subsequent written or oral
forward-looking statements attributable to AngloGold Ashanti or any person
acting on its behalf are qualified by the cautionary statements herein.
This communication may contain certain "Non-GAAP" financial measures. AngloGold
Ashanti utilises certain Non-GAAP performance measures and ratios in managing
its business. Non-GAAP financial measures should be viewed in addition to, and
not as an alternative for, the reported operating results or cash flow from
operations or any other measures of performance prepared in accordance with
IFRS. In addition, the presentation of these measures may not be comparable to
similarly titled measures other companies may use. AngloGold Ashanti posts
information that is important to investors on the main page of its website at
www.anglogoldashanti.com and under the "Investors" tab on the main page. This
information is updated regularly. Investors should visit this website to obtain
important information about AngloGold Ashanti.
Operations at a glance
for the quarter ended
31 March 2014
Production
oz Year-on-year Qtr on $/oz Year-on-year Qtr on
(000) Qtr Qtr
% Variance 4 % Variance 4
% %
Variance Variance
5 5
SOUTH AFRICA 290 (11) (14) 975 (14) (3)
Vaal River Operations 102 (11) (20) 1,020 (25) (6)
Great Noligwa 17 (29) (15) 1,200 (3) (7)
Kopanang 29 (38) (26) 1,320 7 2
Moab Khotsong 55 28 (18) 802 (49) (10)
West Wits Operations 128 (15) (17) 925 (14) 1
Mponeng 76 (18) (18) 930 - (3)
TauTona 52 (10) (16) 916 (31) 8
Total Surface 60 (5) 3 1,000 20 (4)
Operations
First Uranium SA 24 - (11) 1,243 41 20
Surface Operations 36 (5) 20 840 5 (19)
INTERNATIONAL 765 34 (14) 972 (22) (2)
OPERATIONS
CONTINENTAL AFRICA 374 36 (19) 1,042 (24) (8)
DRC
Kibali - Attr. 45% 6 51 - 28 572 - 22
Ghana
Iduapriem 45 10 (33) 898 (30) (22)
Obuasi 53 8 (16) 1,530 (41) (26)
Guinea
Siguiri - Attr. 85% 70 13 (7) 961 (18) (14)
Mali
Morila - Attr. 40% 6 10 (33) (17) 1,598 81 11
Sadiola - Attr. 41% 6 19 - (21) 1,404 7 (14)
Yatela - Attr. 40% 6 4 (60) (50) 2,062 53 (7)
Namibia
Navachab 16 14 (11) 785 (22) 49
Tanzania
Geita 106 61 (31) 1,048 19 34
Non-controlling
interests exploration
and other
AUSTRALASIA 155 154 (8) 929 (50) 22
Australia
Sunrise Dam 71 16 (30) 1,095 (37) 36
Tropicana - Attr. 70% 84 - 27 694 - 8
Exploration and other
AMERICAS 236 1 (10) 879 (5) (1)
Argentina
Cerro Vanguardia - 58 5 (5) 800 (16) (6)
Attr. 92.50%
Brazil
AngloGold Ashanti 94 2 (22) 805 (14) (10)
Mineração
Serra Grande 32 - (6) 1,027 8 7
United States of
America
Cripple Creek & Victor 52 (5) 11 1,015 37 (6)
Non-controlling
interests, exploration
and other
OTHER
Sub-total 1,055 17 (14) 993 (22) (2)
Equity accounted
investments included
above
AngloGold Ashanti
1 Refer to note D under "Non-GAAP disclosure" for definition
2 Refer to note E under "Non-GAAP disclosure" for definition
3 Refer to note B under "Non-GAAP disclosure" for definition
4 Variance March 2014 quarter on March 2013 quarter - increase (decrease).
5 Variance March 2014 quarter on December 2013 quarter - increase (decrease).
6 Equity accounted joint ventures.
Rounding of figures may result in computational discrepancies.
Operations at a glance
For the quarter ended 31
March 2014
Total cash costs 2
$/oz Year-on-year Qtr on $m Year-on-year Qtr on
Qtr Qtr
% Variance 4 $m Variance
% 4 $m
Variance Variance
5 5
SOUTH AFRICA 797 (11) 4 60 (94) (46)
Vaal River Operations 851 (16) 12 9 (26) (24)
Great Noligwa 1,123 1 9 1 (8) (1)
Kopanang 1,074 15 18 (15) (35) (16)
Moab Khotsong 646 (39) 8 23 18 (7)
West Wits Operations 735 (13) 3 34 (48) (31)
Mponeng 709 - 8 25 (38) (11)
TauTona 774 (28) (4) 9 (11) (20)
Total Surface Operations 836 4 (9) 16 (20) 7
First Uranium SA 831 1 (1) 1 (5) (2)
Surface Operations 839 6 (14) 15 (16) 9
INTERNATIONAL OPERATIONS 759 (15) 2 270 (39) (1)
CONTINENTAL AFRICA 808 (19) (4) 119 (10) 2
DRC
Kibali - Attr. 45% 6 538 - 14 25 25 3
Ghana
Iduapriem 716 (32) (26) 20 5 13
Obuasi 1,234 (29) (9) (3) 27 12
Guinea
Siguiri - Attr. 85% 800 (20) (5) 25 (15) 8
Mali
Morila - Attr. 40% 6 1,099 42 29 1 (11) (2)
Sadiola - Attr. 41% 6 1,262 14 (16) (6) (15) 4
Yatela - Attr. 40% 6 1,804 37 (6) (3) (5) 5
Namibia
Navachab 771 (14) 47 9 3 (5)
Tanzania
Geita 631 62 16 47 (22) (42)
Non-controlling 3 (1) 4
interests exploration
and other
AUSTRALASIA 779 (40) 22 59 56 29
Australia
Sunrise Dam 1,066 (15) 56 16 9 (7)
Tropicana - Attr. 70% 495 - (13) 48 48 39
Exploration and other (5) (1) (3)
AMERICAS 668 - 5 92 (85) (33)
Argentina
Cerro Vanguardia - Attr. 644 10 (4) 28 (14) 6
92.50%
Brazil
AngloGold Ashanti 619 (10) 19 38 (28) (31)
Mineração
Serra Grande 799 1 12 6 (17) (6)
United States of America
Cripple Creek & Victor 699 9 (15) 18 (25) (4)
Non-controlling 2 - 2
interests, exploration
and other
OTHER (1) 4 (6)
Sub-total 770 (14) 3 329 (128) (53)
Equity accounted (17) 6 (11)
investments included
above
AngloGold Ashanti 312 (122) (64)
1 Refer to note D under "Non-GAAP disclosure" for definition
2 Refer to note E under "Non-GAAP disclosure" for definition
3 Refer to note B under "Non-GAAP disclosure" for definition
4 Variance March 2014 quarter on March 2013 quarter - increase (decrease).
5 Variance March 2014 quarter on December 2013 quarter - increase (decrease).
6 Equity accounted joint ventures.
Financial and Operating Report
OVERVIEW FOR THE QUARTER
FINANCIAL AND CORPORATE REVIEW
First-quarter adjusted headline earnings (AHE) were $119m, or 29 US cents per
share in the three months to 31 March 2014, compared with $45m, or 11 US cents
per share the previous quarter, and $113m, or 29 US cents per share a year
earlier, in the first quarter of 2013.
Net profit attributable to equity shareholders for the first quarter of 2014
was $39m, compared to a loss of $305m the previous quarter which was mainly
impacted by year-end adjustments, including impairments of assets and inventory
write-downs.
Operational performance for the first quarter was strong with both production
and costs coming in better than market guidance. Production was 1,055koz at an
average total cash cost of $770/oz, compared to 1,229koz at $748/oz the
previous quarter and 899koz at $894/oz in the first quarter of 2013. Guidance
for the quarter was 950,000oz to 1Moz at a total cash cost of $800-850/oz.
Year-on-year costs benefited from higher output, weaker currencies and early
indications are that a range of cost saving initiatives continue to gain
traction.
"Our operators have delivered another strong performance and we continue to
manage costs aggressively," Srinivasan Venkatakrishnan, Chief Executive Officer
of AngloGold Ashanti, said. "There's still plenty of work to do, but with a
strong team intact, a good foundation, and some significant wins under our
belt, we remain focused on continuing to deliver positive results to our
shareholders under tough market conditions."
Production from most operating regions improved year-on-year, with the
exception of the South Africa region, where marginal and loss-making ounces
have been removed from the production profile. In addition, the region
struggled with a slower-than-anticipated start-up after the Christmas break and
interruptions from safety-related stoppages, following a challenging safety
performance for the gold sector in general. South African operations saw an 11%
year-on-year decline to 290,000oz; Continental Africa improved 36% to
374,000oz; the Americas gained 1% to 236,000oz; and Australia was up 154% to
155,000oz. Continental Africa and Australia both benefited from the inclusion
of new mining operations at Kibali and Tropicana, respectively.
Total cash costs dropped $124/oz compared to the previous year, from $894/oz to
$770/oz, reflecting significant improvements from a combination of cost saving
initiatives, currency weakness, removal of some marginal and loss-making
production and higher output in some areas. All-in sustaining costs (AISC) were
$993/oz, a 22% improvement year-on-year, and 2% lower than the previous
quarter. The year-on-year decline in AISC was due to lower sustaining capital
expenditure, improved cash costs and further reductions in corporate costs
($40m) and sustaining exploration expense ($21m).
Total capital expenditure during the first quarter was $274m (including equity
accounted joint ventures), compared with $477m the previous quarter and $512m
in the first quarter of last year. This was somewhat less than planned, due to
lower expenditure at Kibali and Obuasi, and is expected to increase in the
second quarter. Of the total capital spent, project capital expenditure during
the quarter amounted to $115m. Free cash flow improved from negative $82m in
the previous quarter to positive $9m in the first quarter, reflecting improved
costs, higher production and a reduction in capital expenditure.
At the end of the first quarter of 2014, Net Debt was US$3.095bn compared to
$3.105bn in the previous quarter, resulting in a Net Debt to EBITDA ratio of
1.9 times.
Summary of quarter-on-quarter operating and cost improvements:
Performance update Q1 2014 Q1 2013 Year on year change
Gold price received ($/oz) 1,290 X 1,636 (21%)
Gold Production (Koz) 1,055 ü 899 17%
Total cash costs ($/oz) 770 ü 894 14%
Corporate and marketing costs* ($m) 25 ü 65 62%
Exploration and evaluation costs ($m) 30 ü 79 62%
Capital expenditure ($m) 274 ü 512 47%
All-in sustaining costs**($/oz) 993 ü 1,275 22%
EBITDA ($m) 476 X 509 (7)%
Cash flow from operating activities ($m) 350 X 356 (2%)
Free cash flow ($m) 9 ü (227) 104%
* including administration and other expenses.
** World Gold Council Standard, excludes stockpiles written off.
CORPORATE UPDATE
Addressing the underperformance at Obuasi remains a key objective for AngloGold
Ashanti. The restructuring and repositioning of the Obuasi mine, which is
subject to a number of consents, is likely to result in a substantial reduction
in the mine's existing operations and significant work force redundancies
(which we currently estimate at approximately $220m). Fundamental changes aimed
at systemically addressing legacies, infrastructure, development constraints
and cash outflows are being implemented. This work includes initiatives to
reduce the footprint of the operation and consolidate infrastructure, lower
operating costs by introducing a mechanised mining approach in the future,
together with the refurbishment and automation of the processing plant.
AngloGold Ashanti is also considering other strategic alternatives for its
Ghana business.
UPDATE ON CAPITAL PROJECTS
At the Kibali project, a joint venture between state-owned Sokimo (10%),
AngloGold Ashanti (45%) and operator Randgold Resources (45%), steady
production ramp-up progress is being made by Randgold Resources. The
development work on the twin declines is progressing well with a total of 1,656
lateral metres achieved this quarter, exceeding plans by 12.5%. The major
equipment on the sulphide circuit has been commissioned. The focus for the next
quarter is the completion and handover of the metallurgical plant and the
commissioning of the Nzoro hydro power station. The vertical shaft also
continues to make good progress and is currently 5% ahead of plan. The vertical
shaft depth at the end of March was 416.5m. Attributable production for the
2014 year is expected to be between 251,000oz and 269,00oz at total cash cost
of $488/oz-$520/oz. The mineral resources and ore reserves are 10.0Moz and
5.2Moz, respectively.
In the Americas, the Mine Life Extension project at CC&V (approved cost over 5
years $585m) is progressing in line with expectations. The mill schedule is
expected for commissioning/production ramp up in the fourth quarter of 2014,
with full production in 2016. The valley heap leach facility (VLF) and
associated gold recovery plant is on schedule to commission mid-2016. The
planned VLF2/ADR2 schedule is as follows:
* 2014: complete lining the pregnant solution pond area (triple lined
area) and start filling the area for the ADR2 (the gold recovery plant)
platform.
* 2015: complete the ADR2 pad, construct the ADR2 plant (the gold
recovery plant), and start loading ore on the first phase VLF2.
* 2016: commission ADR2/VLF2 and start gold production.
As of 31 March 2014, overall project progress is 40% complete. The mill is
largely on schedule to commission and we expect first gold production in the
fourth quarter of 2014. Overall construction of the mill is 65% complete. To
help facilitate the construction completion schedule, additional man-shifts,
including nights and weekends, have been added to the work schedule. Mill
concrete construction is 73% complete with 8.4k cubic-yards of concrete
poured. A total of 1,150 tons of steel has been erected, which represents 35%
of the total steel planned. Capex for this project is estimated at $585m with
$234m having already been spent to date. The mineral resources and ore reserves
are 10.8Moz and 4.7Moz respectively.
UPDATE ON COST OPTIMISATION AND PORTFOLIO REVIEW
Cost optimisation and portfolio review: A process remains underway to improve
efficiency across the business, to identify long-term savings in the company's
direct and indirect cost base and to optimise capital expenditure. The
previously announced Project 500 initiatives remain on track with the goal to
realise approximately $500m of cost savings by the end of the year.
Achievements resulting from these initiatives include:
In the South Africa region, savings of $56m were achieved during the first
quarter through the deferment of capital expenditure, labour and contractor
reductions, a decrease in consumables, the implementation of service
optimisation strategies and a critical review of commodity as well as services
related contracts.
Contract mining rates at Siguiri and Sadiola were reduced by between 16% and
14%, delivering an annual saving of $15m.
Negotiated a 32% lower Cyanide price for our West African operations, for an
annual saving of roughly $10.5m. In addition, improved Cyanide control systems
have further lowered costs at various sites, including Iduapriem, which has cut
usage by 30%.
The number of global expatriates on mine sites has been reduced resulting in a
saving of more than $10m at the end of March 2014.
Consumable stores inventory in Continental Africa has been reduced by $52m
since July 2013.
Sunrise Dam has improved Jumbo development rates from 330m to 420m per month,
coupled with a 10% improvement in trucking productivities over the same period.
This has allowed the mine to demobilise two trucks and one loader, reducing
monthly fixed costs by about A$195,000 and reducing quarter-on-quarter variable
unit rates by A$300,000.
SA LABOUR UPDATE
The two-year wage agreement which was concluded in September 2013 was
implemented and backdated to 1 July 2013. AMCU voluntarily participated in the
negotiations but has not yet signed the wage agreement. However, the wage
agreement was extended to all employees regardless of their respective union
affiliations and as a result the AMCU members have all benefited from the
resulting wage increase.
On 30 January 2014, the Labour Court declared a threatened AMCU strike
unprotected, with an interim interdict for any possible strike. AMCU has since
applied for a court hearing on a constitutional point which will be heard on 5
June 2014. The current interdict remains in place until the matter is
finalised in the Labour Court.
TECHNOLOGY AND INNOVATION UPDATE
During the first quarter, the Technology Innovation Consortium has continued to
make considerable progress in prototype development pertaining to certain key
technologies that seek to establish the base for a safe, automated mining
method intended for selective use at AngloGold Ashanti's deep-level underground
mining operations in South Africa.
Although achieving good results in several of the drilling aspects
(skin-to-skin), the challenge to mine "All the Gold" with no dilution remains.
In this respect, work is currently focused on drilling an overlapping hole
configuration.
Progress on various aspects of the Tau Tona project are as follows:
Reef Boring (Stoping): In the first quarter, four single-pass (660mm) holes
were drilled. In line with our efforts to test and extract all the gold,
holes 18, 19 and 20 have been drilled directly adjacent to ('skin-to-skin')
previously drilled and backfilled holes. The overall results proved to be
successful and the data gathered together with the knowledge of the ground
conditions will be applied to enhance drilling of new holes. In addition, the
production drilling sequence is also being tested and the results obtained will
be applied to the production site once drilling commences. Hole 21 was drilled
as the first hole in this sequence.
Site Equipping: Site equipping, opening up and development of the 2014
production sites is progressing according to schedule. The first production
site at TauTona mine will go live in the second quarter, followed by a site at
Great Noligwa and a second site at TauTona, during the second quarter.
Potential drilling sites for 2015 production have been identified. Labour
recruitment, development and equipping are in progress.
Machine Manufacturing: The medium reef (width 40-80cm) Atlantis Mark 3 machine
was delivered at the TauTona mine to align with the production start-up
schedule in the second quarter. Machine manufacturing is continuing with the
next machines to be delivered in accordance with the respective production
start-up schedules at the other business units.
Ultra High Strength Backfill (UHSB): Construction of the underground backfill
plant is in progress and is on schedule to coincide with the start-up of the
first production site in the second quarter at TauTona mine. A replica of the
underground production site mixers have been constructed on surface to confirm
the mixing cycles and also to gather information to automate the underground
plant to ensure operational readiness.
Ore body Knowledge and Exploration: Trial 4, aimed at achieving a hole depth of
150m at 8m/hr, was completed during the quarter and a total of 5 holes were
drilled. The results obtained were promising as they reached the required
depth and speed. Surveying of the holes has commenced where the Gyro will be
tested for hole deflection, the camera for geological structure and lastly the
Gamma for reef intersection.
The strategy for the second quarter of 2014 is to test a different drilling
technique (rotary percussion drilling) using the same drilling system with the
aim to compare the speed and accuracy of results. In the latter part of the
year, we expect the team will continue with reverse circulation tests
incorporating a new high pressure compressor with the objective of achieving a
hole depth of 300m at 8m/hr.
SAFETY
The All-Injury Frequency Rate (AIFR) improved 3% compared to the first quarter
of 2013. The safety focus continues on Major Hazard Management through
identification and monitoring of critical controls and High Potential Incidents
(HPIs) with a view of enhancing organisational learning and institutionalising
change in order to improve our safety record progress going forward. Given that
the occurrence of HPIs in the past correlates with fatal incidents experienced
by the business, they used as learning opportunities to prevent future
occurrences.
Kopanangmade history on 10 March 2014 as it became the first AngloGold Ashanti
mine in South Africa to achieve three million fatality-free shifts.
Tragically, however, two incidents resulted in three fatalities during the
quarter. There was one fatality at the Mponeng project in South Africa, and
two contractor employees lost their lives at a single incident at the Cuiabá
mine in Brazil whilst renovating the vent shaft.
OPERATING HIGHLIGHTS
The South African operations produced 290,000oz during the first quarter at a
total cash cost of $797/oz, compared to 327,000oz at a total cash cost of $896/
oz, the same quarter a year ago. The region was negatively impacted by
safety-related disruptions, which resulted in lost production of approximately
19,000oz, coupled with the slow ramp-up to production subsequent to the
year-end break. The all-in sustaining costs for the region at $975/oz during
the quarter reflects a 14% improvement compared to $1,129/oz during the same
period a year ago. Overall performance of Ore Reserve Development (ORD) from
the region was impacted during the quarter as a result of the stoppages,
particularly at Mponeng and Kopanang.
At the West Wits operations, the first quarter performance was adversely
affected by a continued increase in seismic activity and safety stoppages.
Production for the first quarter was 128,000oz at total cash cost of $735/oz
compared to 151,000oz at $845/oz achieved a year ago. The 13% decrease in cash
costs for the West Wits operations is testimony to the vigorous cost
optimisation measures that have been implemented. Mponeng reflected a 29% rise
in yield compared to the same quarter last year as a result of targeting
reduced stope-widths and reduced intake of waste tonnages, which increased
overall grade.
Vaal River operations saw a decrease in production in the first quarter to
102,000oz at a total cash cost of $851/oz compared to the 114,000oz at a total
cash cost of $1,014/oz a year ago. Kopanang was hardest hit as production was
severely impacted by safety stoppages by the regulator on the back of
engineering constraints and a power outage from the Eskom main substation. Moab
Khotsong once again saw an increase in average recovered grade. This favourable
yield was achieved through a reduction in dilution due to a decrease in stope
width and higher average reef grade being mined. Despite the decline in
production, costs were closely managed. Moab Khotsong was the lowest cost
producer for the South African region at a total cash cost of $646/oz and
all-in sustaining cost of $802/oz.
Production at Surface operations in the first quarter was 60,000oz at a total
cash cost of $836/oz, compared to 63,000oz at $805/oz a year ago. The
operations were negatively affected by severe rainfalls and load shedding by
Eskom. Grades reflected minimal improvement specifically at Mine Waste
Solutions where operations shifted to reclamation sites with lower gold
recovery rates. Inclement weather conditions, logistical and safety challenges
were encountered with the commissioning of the uranium circuit at Mine Waste
Solutions, which will not only allow uranium production, but also improve gold
recovery rates. The commissioning is now scheduled to be completed in the
second quarter of 2014.
The Continental Africa Region production during the first quarter was 374,000oz
at a total cash cost $808/oz, with production 36% higher than the same quarter
last year (17% higher excluding Kibali). The all-in sustaining costs for the
region were $1,042/oz.
In Ghana, Obuasi's production was 53,000oz at a total cash cost of $1,234/oz,
compared to 49,000oz at a total cash cost of $1,742/oz a year ago reflecting an
improvement in tonnage throughput. Operations during the quarter experienced
extended power interruptions which limited access to higher grade areas. Total
cash costs saw the benefit of cost savings, particularly on labour
rationalisation.
Iduapriem's production was 45,000oz at a total cash cost of $716/oz, compared
to 41,000oz a year ago. Total cash costs decreased by 32% to $716/oz compared
to $1,052 in the same quarter a year ago, mainly due to lower volumes being
mined and an increase in the processing of stockpiled ore.
At Geita, in Tanzania, production in the first quarter was 106,000oz compared
to 66,000oz in the same quarter a year ago, when production was affected by the
replacement of the SAG mill. While production was, however, impacted by
downtime associated with SAG and Ball mill relining work, this work was done in
less time than anticipated, allowing for strong reported tonnage throughput
together with consistent high recovery and feed grade. Total cash costs at $631
/oz benefited from lower mining contractor costs.
In the Republic of Guinea, Siguiri's production was 70,000oz at a total cash
cost of $800/oz compared to 62,000oz at $998/oz in the same quarter a year ago.
The operation has achieved its ninth consecutive quarter of exceeding planned
quarterly production targets as it continues to focus on improved planning to
increase volumes and achieve further cost savings resulting from improved
operating efficiencies.
In the DRC, Kibali's production was 51,000oz at a total cash cost of $538/oz.
Production is 28% higher than the previous quarter as a result of a 51%
increase in tonnage throughput as the operation continues to ramp up to
capacity after commissioning in the previous quarter.
In the Americas, production during the first quarter was 236,000oz, at total
cash cost of $668/oz compared to 234,000oz at a total cash costs of $668/oz a
year ago. In Brazil, AngloGold Ashanti Mineração production was 94,000oz at a
total cash cost of $619/oz in the first quarter of 2014 compared to 92,000oz at
$689/oz in the same quarter a year ago. At Cuiabá, which is a part of the
AngloGold Ashanti Mineração complex, higher grades helped to offset the lower
tonnage rates that were a result of fleet availability constraints and
disruptions following the fatal accident at the mine. Total cash costs
benefited from lower cost of equipment maintenance and general expenses as a
result of work associated with Project 500. Serra Grande maintained production
at 32,000oz at a total cash cost of $799/oz compared to a year ago.
Production at Cripple Creek & Victor, in the US, was 52,000oz at a total cash
costs of $699/oz compared to 55,000oz at total cash cost of $643/oz a year ago.
The lower production and higher costs can be attributed to lower grades and a
slight decrease in the strip ratio. Stockpiling continues at the operation with
both leach grade and mill grade material, to ensure that production can
commence at the mill as soon as it is online. Approximately 383k tons of
0.06oz/t has been stockpiled year to date for the mill.
In Argentina, Cerro Vanguardia´s production was 58,000oz at total cash cost of
$644/oz compared to 55,000oz at $583/oz in the same quarter a year ago. Costs
at the operation have benefitted from lower service and maintenance costs and
lower consumption of chemicals and other materials; however this was more than
offset by lower by-product credits and an increase in local inflation.
The Australasia region produced 155,000oz at a total cash cost of $779/oz
compared to 61,000oz at a total cash cost of $1,302/oz a year ago significantly
benefitting from the Tropicana ramp-up. The all-in sustaining cost for the
region was $929/oz. At Sunrise Dam, production was 71,000oz at a total cash
cost of $1,066/oz compared to 61,000oz at $1,247/oz a year ago. The quarter
experienced favourable mill throughput and recovery rates, with the mine now
operating exclusively underground. A total of 168m of underground capital
development and 2,347m of operational development were completed during the
quarter. Four RC rigs were operating underground, producing positive results to
support a large bulk-mining opportunity of approximately 3g/t, for 2014 and
beyond; two stopes of approximately 200,000t and 175,000t were identified. The
underground ore production for the month of March was 211,000t, surpassing
200,000t for the first time, whilst mill throughput averaged 10,156 t/day, with
a recovery rate of 87.2%.
At Tropicana, despite wet weather conditions, production progressed well,
delivering 84,000oz at a total cash cost of $495/oz. As planned, production was
27% higher than the 66,000oz produced in the previous quarter, with
commensurate cost benefit. The processing plant achieved the commissioning
ramp-up target of 95% availability at design ore throughput levels within six
months, as planned. Major rainfall flooded a portion of the mine access road
during the quarter, but alternative road access was arranged without any loss
of production. Tropicana is a joint venture between 70% AngloGold Ashanti and
30% Independence Group NL. Production for the first three years is expected to
be between 470,000oz and 490,000oz. Total cash costs are estimated at between
A$590/oz and A$630/oz. Mineral resources and ore reserves are 2.6Moz and
5.4Moz, respectively.
EXPLORATION
Total expensed exploration and evaluation costs (including technology) during
the first quarter, inclusive of expenditure at equity accounted joint ventures,
was $34m ($8m on Brownfield, $12m on Greenfield and $14m on pre-feasibility
studies), compared with $92m during the same quarter the previous year.
Greenfields exploration activities were undertaken in three countries;
Australia, Colombia and Guinea, while minor work was also completed in Brazil.
In Colombia, exploration continued at the Nuevo Chaquiro target, Quebradona
project, in joint venture with B2Gold (AngloGold Ashanti 86.2%). In January
drilling was restarted with a single diamond drilling rig, continuing to deepen
CHA-48 to a final depth of 1500m. A significant zone of mineralisation was
intersected over 800m downhole with intense disseminations and veins of
chalcopyrite associated with an early quartz diorite intrusive. Hole CHA-49
drilled in the opposite direction on another target intersected over 400m of
less intense mineralisation. A second diamond rig has been mobilised to site to
test the northwest extension of the mineralised zone intersected in hole
CHA-48. Regional evaluations and reconnaissance continues on AGA's large
tenement package in Colombia.
In Australia, airborne EM surveys were completed early in the first quarter at
the Tropicana JV (AngloGold Ashanti 70%), the results of which have identified
two priority bedrock conductors which will be followed up with ground EM and
drilling. Further encouraging results were returned from the first pass diamond
drilling at Madras prospect approximately 25km south of the Tropicana Gold
Mine. Follow-up RC, diamond and aircore drilling programs are being designed
for execution in the second quarter 2014. At the Nyngan JV (AngloGold Ashanti
70% of earnings), induced polarisation (IP) geophysical surveying was completed
over a third target area during the quarter. Processing and interpretation of
the IP results is now complete for the three targets surveyed to date. Access
negotiations with local land owners continue ahead of planned ground geophysics
(IP) scheduled for the second quarter.
In South Africa, four deep surface drilling sites were in operation during the
quarter, one on the Moab Khotsong Mine and three at Mponeng (WUDLs). Percussion
drilling commenced for MZA10 and the hole is currently at 402m. This hole is
targeted to provide value information in the lower reaches of the early gold
portion of Project Zaaiplaats.
At UD51, the long deflection design to intersect the VCR was completed and
intersected thin VCR. Short deflection drilling has commenced. Redrillat UD59
has advanced to 2,349.8m and at UD60 to 1,412.7m. Pilot drilling (656m) has
been completed at UD58 and site establishment has started with rigging
commencing early in the next quarter.
In Tanzania at Geita Gold Mine drilling focused on infill drilling programs for
Nyankanga Cut 8, Geita Hill West and Geita Hill East. A total of 6,292m were
drilled. A series of very thick high grade intersection were obtained from
Matandani area and work is ongoing to understand the full upside implications
of these intersections.
In Guinea, exploration work continued in Blocks 2,3 and 4 (AngloGold Ashanti
85%) with 3,269m of reverse circulation drilling and 73.8 km of IP surveying
completed at Kounkoun (Block 3) and 1,237m of reconnaissance diamond drilling
completed at Kouremale (Block 4). At Kounkoun, drilling aimed to test the
continuity of mineralisation between KK1 and KK2 along the turbidite/
chlorite-magnetite-shale contact. The drilling in this KK1-KK2 Gap showed
significant encouraging results. At Kouremale, drilling tested north-striking
structural features delineated by IP and geochemical surveys. The results at
Kouremale were disappointing and no further work will be required on those
targets. Field work on Block 2 consisted of surface mapping of a newly
discovered gold occurrence.
Detailed information on the exploration activities and studies both for
brownfields and greenfields is available on the AngloGold Ashanti website (
www.anglogoldashanti.com ).
OUTLOOK
Gold production for the second quarter of 2014 is estimated at 1,020koz to
1,060koz. Total cash costs are estimated at between $830/oz to $865/oz at an
average exchange rate of R10.64/$, BRL2.28/$, A$0.93/$ and AP8.15/$ and brent
at $105/barrel.
Both production and cost estimates assume no labour interruptions, together
with the ongoing successful ramp-up at Kibali and Tropicana, and no changes to
asset portfolio / operating mines. Other known or unpredictable factors could
also have material adverse effects on our future results. Please refer to the
Risk Factors section in AngloGold Ashanti's Form 20-F for the year ended 31
December 2013 that was filed with the United States Securities and Exchange
Commission ("SEC") on 14 April 2014 and available on the SEC's homepage at
http://www.sec.gov.
Group income statement
Quarter Quarter Quarter Year
ended ended ended ended
March December March December
2014 2013 2013 2013
US Dollar million Notes Reviewed Reviewed Reviewed Audited
Revenue 2 1,359 1,474 1,518 5,708
Gold income 2 1,324 1,418 1,463 5,497
Cost of sales 3 (1,012) (1,042) (1,029) (4,146)
(Loss) gain on non-hedge derivatives (16) 28 - 94
and other commodity contracts
Gross profit 296 404 434 1,445
Corporate administration, marketing (25) (37) (65) (201)
and other expenses
Exploration and evaluation costs (30) (41) (79) (255)
Other operating expenses 4 (5) (1) (1) (19)
Special items 5 (7) (90) (25) (3,410)
Operating profit (loss) 229 235 264 (2,440)
Dividends received 2 - - 5 5
Interest received 2 6 15 6 39
Exchange (loss) gain (6) 4 (4) 14
Finance costs and unwinding of 6 (71) (75) (64) (296)
obligations
Fair value adjustment on $1.25bn (70) (12) - (58)
bonds
Fair value adjustment on option - - 9 9
component of convertible bonds
Fair value adjustment on mandatory - - 137 356
convertible bonds
Share of associates and joint 7 19 4 (7) (162)
ventures' profit (loss)
Profit (loss) before taxation 107 171 346 (2,533)
Taxation 8 (62) (426) (98) 333
Profit (loss) for the period 45 (255) 248 (2,200)
Allocated as follows:
Equity shareholders 39 (305) 239 (2,230)
Non-controlling interests 6 50 9 30
45 (255) 248 (2,200)
Basic earnings (loss) per ordinary 10 -75 62 (568)
share (cents) (1)
Diluted earnings (loss) per ordinary 10 (75) 27 (631)
share (cents) (2)
(1) Calculated on the basic weighted average number of ordinary shares.
(2) Calculated on the diluted weighted average number of ordinary shares.
Rounding of figures may result in computational discrepancies.
Group statement of comprehensive income
Quarter Quarter Quarter Year
ended ended ended ended
March December March December
2014 2013 2013 2013
US Dollar million Reviewed Reviewed Reviewed Audited
Profit (loss) for the period 45 (255) 248 (2,200)
Items that will be reclassified
subsequently to profit or loss
Exchange differences on translation of (8) (85) (149) (433)
foreign operations
Share of associates and joint ventures 1 - - -
other comprehensive income
Net gain (loss) on available-for-sale 9 - (14) (23)
financial assets
Release on impairment of - 1 12 30
available-for-sale financial assets (note
5)
Release on disposal of available-for-sale - - - (1)
financial assets
Cash flow hedges - 1 - 1
Deferred taxation thereon (4) - 2 2
5 2 - 9
Items that will not be reclassified
subsequently to profit or loss
Actuarial gain recognised 10 52 - 69
Deferred taxation thereon (2) (15) - (20)
8 37 - 49
Other comprehensive income (loss) for the 6 (46) (149) (375)
period, net of tax
Total comprehensive income (loss) for the 51 (301) 99 (2,575)
period, net of tax
Allocated as follows:
Equity shareholders 45 (351) 90 (2,605)
Non-controlling interests 6 50 9 30
51 (301) 99 (2,575)
Rounding of figures may result in computational discrepancies.
Group statement of financial position
As at As at As at
March December March
2014 2013 2013
US Dollar million Notes Reviewed Audited Reviewed
ASSETS
Non-current assets
Tangible assets 4,885 4,815 7,743
Intangible assets 269 267 321
Investments in associates and joint ventures 1,391 1,327 1,172
Other investments 141 131 147
Inventories 617 586 647
Trade and other receivables 25 29 48
Deferred taxation 169 177 93
Cash restricted for use 37 31 29
Other non-current assets 50 41 7
7,584 7,404 10,207
Current assets
Other investments 1 1 -
Inventories 1,016 1,053 1,196
Trade and other receivables 380 369 466
Cash restricted for use 14 46 34
Cash and cash equivalents 525 648 680
1,936 2,117 2,376
Non-current assets held for sale 15 158 153 -
2,094 2,270 2,376
TOTAL ASSETS 9,678 9,674 12,583
EQUITY AND LIABILITIES
Share capital and premium 11 7,024 7,006 6,752
Accumulated losses and other reserves (3,884) (3,927) (1,204)
Shareholders' equity 3,140 3,079 5,548
Non-controlling interests 35 28 21
Total equity 3,175 3,107 5,569
Non-current liabilities
Borrowings 3,569 3,633 2,844
Environmental rehabilitation and other 1,013 963 1,174
provisions
Provision for pension and post-retirement 152 152 205
benefits
Trade, other payables and deferred income 14 4 2
Derivatives - - 1
Deferred taxation 579 579 1,063
5,327 5,331 5,289
Current liabilities
Borrowings 235 258 662
Trade, other payables and deferred income 793 820 929
Bank overdraft 22 20 -
Taxation 67 81 134
1,117 1,179 1,725
Non-current liabilities held for sale 15 59 57 -
1,176 1,236 1,725
Total liabilities 6,503 6,567 7,014
TOTAL EQUITY AND LIABILITIES 9,678 9,674 12,583
Rounding of figures may result in computational discrepancies.
Group statement of cash flows
Quarter Quarter Quarter Year
ended ended ended ended
March December March December
2014 2013 2013 2013
US Dollar million Reviewed Reviewed Reviewed Audited
Cash flows from operating activities
Receipts from customers 1,288 1,479 1,492 5,709
Payments to suppliers and employees (905) (1,039) (1,084) (4,317)
Cash generated from operations 383 440 408 1,392
Dividends received from joint ventures - - 8 18
Taxation refund 37 22 - 23
Taxation paid (70) (31) (60) (187)
Net cash inflow from operating activities 350 431 356 1,246
Cash flows from investing activities
Capital expenditure (220) (372) (384) (1,501)
Interest capitalised and paid - - (4) (5)
Expenditure on intangible assets - (17) (13) (68)
Proceeds from disposal of tangible assets - 2 - 10
Other investments acquired (26) (18) (32) (91)
Proceeds from disposal of other 24 15 27 81
investments
Investments in associates and joint (40) (78) (150) (472)
ventures
Proceeds from disposal of associates and - - 5 6
joint ventures
Loans advanced to associates and joint (4) (14) - (41)
ventures
Loans repaid by associates and joint - - - 33
ventures
Dividends received - - 5 5
Proceeds from disposal of subsidiary - - 1 2
Reclassification of cash balances to held (1) 3 - (2)
for sale assets
Decrease (increase) in cash restricted 26 (13) - (20)
for use
Interest received 4 10 4 23
Net cash outflow from investing (237) (482) (541) (2,040)
activities
Cash flows from financing activities
Proceeds from borrowings 15 238 146 2,344
Repayment of borrowings (171) (260) (95) (1,486)
Finance costs paid (81) (42) (37) (200)
Revolving credit facility and bond - (2) (5) (36)
transaction costs
Dividends paid - (11) (26) (62)
Net cash (outflow) inflow from financing (237) (77) (17) 560
activities
Net decrease in cash and cash equivalents (124) (128) (202) (234)
Translation (1) (5) (10) (30)
Cash and cash equivalents at beginning of 628 761 892 892
period
Cash and cash equivalents at end of 503 628 680 628
period (1)
Cash generated from operations
Profit (loss) before taxation 107 171 346 (2,533)
Adjusted for:
Movement on non-hedge derivatives and 16 (28) - (94)
other commodity contracts
Amortisation of tangible assets 175 202 213 775
Finance costs and unwinding of 71 75 64 296
obligations
Environmental, rehabilitation and other 8 (37) (8) (66)
expenditure
Special items 6 88 30 3,399
Amortisation of intangible assets 9 9 2 24
Fair value adjustment on $1.25bn bonds 70 12 - 58
Fair value adjustment on option component - - (9) (9)
of convertible bonds
Fair value adjustment on mandatory - - (137) (356)
convertible bonds
Interest received (6) (15) (6) (39)
Share of associates and joint ventures' (19) (4) 7 162
(profit) loss
Other non-cash movements 13 7 4 25
Movements in working capital (67) (40) (98) (250)
383 440 408 1,392
Movements in working capital
Increase in inventories (10) (26) (39) (142)
(Increase) decrease in trade and other (36) 20 18 69
receivables
Decrease in trade, other payables and (21) (34) (77) (177)
deferred income
(67) (40) (98) (250)
The cash and cash equivalents balance at 31 March 2014 includes a bank
overdraft included in the statement of financial position as part of current
liabilities of $22m (31 December 2013 : $20m) (September 2013: $25m).
Rounding of figures may result in computational discrepancies.
Group statement of changes in equity
Share Cash Available
capital Other Accumu- flow for
and capital lated hedge sale
US Dollar million premium reserves losses reserve reserve
Balance at 31 December 2012 6,742 177 (806) (2) 13
Profit for the period 239
Other comprehensive loss
Total comprehensive income (loss) - - 239 - -
Shares issued 10
Share-based payment for share awards (4)
net of exercised
Dividends paid (21)
Dividends of subsidiaries
Translation (11) 5 (1)
Balance at 31 March 2013 6,752 162 (583) (2) 12
Balance at 31 December 2013 7,006 136 (3,061) (1) 18
Profit for the period 39
Other comprehensive income (loss) 1 5
Total comprehensive income (loss) - 1 39 - 5
Shares issued 18
Share-based payment for share awards (2)
net of exercised
Translation 1 (2)
Balance at 31 March 2014 7,024 136 (3,024) (1) 23
Rounding of figures may result in computational discrepancies.
Foreign
Actuarial currency Non-
(losses) translation controlling Total
US Dollar million gains reserve Total interests equity
Balance at 31 December 2012 (89) (562) 5,473 21 5,494
Profit for the period 239 9 248
Other comprehensive loss (149) (149) (149)
Total comprehensive income - (149) 90 9 99
(loss)
Shares issued 10 10
Share-based payment for share (4) (4)
awards
net of exercised
Dividends paid (21) (21)
Dividends of subsidiaries - (9) (9)
Translation 7 - -
Balance at 31 March 2013 (82) (711) 5,548 21 5,569
Balance at 31 December 2013 (25) (994) 3,079 28 3,107
Profit for the period 39 6 45
Other comprehensive income 8 (8) 6 6
(loss)
Total comprehensive income 8 (8) 45 6 51
(loss)
Shares issued 18 18
Share-based payment for share (2) (2)
awards
net of exercised
Translation (1) 1 -
Balance at 31 March 2014 (17) (1,002) 3,140 35 3,175
Rounding of figures may result in computational discrepancies.
Segmental reporting
AngloGold Ashanti's operating segments are being reported based on the
financial information provided to the Chief Executive Officer and the Executive
Committee, collectively identified as the Chief Operating Decision Maker
(CODM). Individual members of the Executive Committee are responsible for
geographic regions of the business.
Quarter Quarter Quarter Year ended
ended ended ended
Mar Dec Mar Dec
2014 2013 2013 2013
Reviewed Reviewed Reviewed Audited
US Dollar US Dollar US Dollar US Dollar
million million million million
Gold income
South Africa 372 428 507 1,810
Continental Africa 532 568 535 2,111
Australasia 215 192 94 441
Americas 310 335 395 1,425
1,429 1,523 1,532 5,787
Equity-accounted investments (105) (105) (69) (290)
included above
1,324 1,418 1,463 5,497
Gross profit (loss)
South Africa 44 134 154 510
Continental Africa 119 117 129 475
Australasia 59 30 3 (9)
Americas 92 125 177 516
Corporate and other (1) 5 (5) -
313 410 457 1,492
Equity-accounted investments (17) (6) (23) (47)
included above
296 404 434 1,445
Capital expenditure
South Africa 51 112 101 451
Continental Africa 127 212 208 839
Australasia 27 35 101 285
Americas 69 116 98 410
Corporate and other - 2 4 8
274 477 512 1,993
Equity-accounted investments (53) (94) (97) (411)
included above
221 383 415 1,582
Quarter Quarter Quarter Year ended
ended ended ended
Mar Dec Mar Dec
2014 2013 2013 2013
Reviewed Reviewed Reviewed Audited
oz (000) oz (000) oz (000) oz (000)
Gold production
South Africa 290 339 327 1,302
Continental Africa 374 460 276 1,460
Australasia 155 169 61 342
Americas 236 262 234 1,001
1,055 1,229 899 4,105
As at As at As at
Mar Dec Mar
2014 2013 2013
Reviewed Audited Reviewed
US Dollar US Dollar US Dollar
million million million
Total assets (1)
South Africa 2,311 2,325 2,841
Continental Africa 3,478 3,391 5,092
Australasia 1,059 1,108 1,143
Americas 2,263 2,203 2,880
Corporate and other 567 647 627
9,678 9,674 12,583
(1) During the 2013 year, pre tax impairments, derecognition of goodwill,
tangible assets and intangible assets of $3,029m were accounted for in South
Africa ($311m), Continental Africa ($1,776m) and the Americas ($942m).
Rounding of figures may result in computational discrepancies.
Notes
for the quarter ended 31 March 2014
1. Basis of preparation
The financial statements in this quarterly report have been prepared in
accordance with the historic cost convention except for certain financial
instruments which are stated at fair value. The group's accounting policies
used in the preparation of these financial statements are consistent with those
used in the annual financial statements for the year ended 31 December 2013
except for the adoption of new standards and interpretations effective
1 January 2014 (note 14).
The financial statements of AngloGold Ashanti Limited have been prepared in
compliance with IAS 34, IFRS as issued by the International Accounting
Standards Board, the South African Institute of Chartered Accountants Financial
Reporting Guides as issued by the Accounting Practices Committee, Financial
Reporting Pronouncements as issued by Financial Reporting Standards Council,
JSE Listings Requirements and in the manner required by the South African
Companies Act, 2008 (as amended) for the preparation of financial information
of the group for the quarter ended 31 March 2014.
2. Revenue
Quarter ended Quarter ended Quarter ended Year-ended
Mar Dec Mar Dec
2014 2013 2013 2013
Reviewed Reviewed Reviewed Audited
US Dollar US Dollar
US Dollar million US Dollar million million million
Gold income 1,324 1,418 1,463 5,497
By-products (note
3) 29 39 34 149
Dividends
received - - 5 5
Royalties
received (note 5) 1 1 10 18
Interest received 6 15 6 39
1,359 1,474 1,518 5,708
3. Cost of sales
Quarter ended Quarter ended Quarter ended Year ended
Mar Dec Mar Dec
2014 2013 2013 2013
Reviewed Reviewed Reviewed Audited
US Dollar million
Cash operating costs 762 858 785 3,274
By-products revenue
(note 2) (29) (39) (34) (149)
733 819 751 3,125
Royalties 37 32 37 129
Other cash costs 8 10 9 43
Total cash costs 778 861 797 3,297
Retrenchment costs 6 16 6 69
Rehabilitation and other
non-cash costs 22 (11) 11 18
Production costs 806 866 814 3,384
Amortisation of tangible
assets 175 202 213 775
Amortisation of
intangible assets 9 9 2 24
Total production costs 990 1,077 1,029 4,183
Inventory change 22 (35) - (37)
1,012 1,042 1,029 4,146
4. Other operating expenses
Year
Quarter ended ended
Mar Dec Mar Dec
2014 2013 2013 2013
Reviewed Reviewed Reviewed Audited
US Dollar million
Pension and medical defined benefit
provisions 2 (1) 4 14
Claims filed by former employees in respect
of loss of employment, work-related
accident injuries and diseases,
governmental fiscal claims and care and
maintenance of old tailings operations 3 2 (3) 5
5 1 1 19
Rounding of figures may result in computational discrepancies.
5. Special items
Year
Quarter ended ended
Mar Dec Mar Dec
2014 2013 2013 2013
Reviewed Reviewed Reviewed Audited
US Dollar million
Net impairment and derecognition of
goodwill, tangible assets and intangible
assets (note 9) - 36 1 3,029
Impairment of other investments (note 9) - 1 12 30
Net loss (profit) on disposal and
derecognition of land, mineral rights,
tangible assets and exploration properties
(note 9) 2 - 1 (2)
Royalties received (note 2) (1) (1) (10) (18)
Indirect tax expenses and legal claims - 7 3 43
Inventory write-off due to fire at Geita - - 14 14
Insurance proceeds on Geita claim - (13) - (13)
Legal fees and other costs related to
contract termination and settlement costs 6 16 4 19
Write-down of stockpiles and heap leach to
net realisable value and other stockpile
adjustments - 38 - 216
Retrenchment and related costs - 4 - 24
Write-off of a loan - - - 7
Costs on early settlement of convertible
bonds and transaction costs on the $1.25bn
bond and standby facility - 2 - 61
7 90 25 3,410
For the quarter ended 31 March 2014, no asset impairments were recognised.
During the year ended 31 December 2013, impairment, derecognition of assets and
write-down of inventories to net realisable value and other stockpile
adjustments include the following:
The group reviews and tests the carrying value of its mining assets (including
ore-stock piles) when events or changes in circumstances suggest that the
carrying amount may not be recoverable.
During June 2013, consideration was given to a range of indicators including a
decline in gold price, increase in discount rates and reduction in market
capitalisation. As a result, certain cash generating units' recoverable
amounts, including Obuasi and Geita in Continental Africa, Moab Khotsong in
South Africa and CC&V and AGA Mineração in the Americas, did not support their
carrying values and impairment losses were recognised during 2013. The
impairment for these cash generating units represents 80% of the total
impairment and range between $200m and $700m per cash generating unit on a post
taxation basis.
The indicators were re-assessed as at 31 December 2013 as part of the annual
impairment assessment cycle and the conditions that arose in June 2013 were
largely unchanged and no further cash generating unit impairments arose.
Investments in Inventory
equity-accounted write-down
Tangible Intangible Asset associates and and other Pre-tax
Goodwill asset asset derecognition joint ventures stockpile sub Taxation Post-tax
impairment impairment impairment (1) impairment adjustments total thereon total
US Dollar million
South - 308 - 3 - 1 312 (86) 226
Africa
Continental - 1,651 20 105 179 200 2,155 (564) 1,591
Africa
Americas 15 910 16 1 - 15 957 (333) 624
Corporate - - - - 16 - 16 - 16
and other
15 2,869 36 109 195 216 3,440 (983) 2,457
(1) The Mongbwalu project in the Democratic Republic of the Congo was
discontinued.
Impairment calculation assumptions as at 31 December 2013 - 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 $1,269/oz (2012: $1,584/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, the real pre-tax rate, per cash generating unit
ranged from 6.21% to 18.07% which was derived from the group's weighted average
cost of capital (WACC) and risk factors consistent with the basis used in 2012.
At 31 December 2013, the group WACC was 7.30% (real post-tax) which is 204
basis points higher than in 2012 of 5.26%, and is based on the average capital
structure of the group and three 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. Project risk has been applied to cash flows relating to certain mines
that are deep level underground mining projects below infrastructure in South
Africa and Continental Africa region;
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 3 years to 47 years; and
variable operating cash flows are increased at local Consumer Price Index
rates.
Rounding of figures may result in computational discrepancies.
Impairment calculation assumptions - Investments in equity-accounted associates
and joint ventures
The impairment indicators considered the quoted share price, current financial
position and decline in anticipated operating results. Included in share of
equity-accounted investments' loss of $162m for the year ended 31 December 2013
is an impairment of $195m and an impairment reversal of $31m.
Net realisable value calculation assumptions as at 31 December 2013 - Inventory
Impairments of $178m were raised at 30 June 2013 to net realisable value based
on a spot price of $1,200. Additional impairments of $38m were raised at 31
December 2013 due to stockpile abandonments and other specific adjustments. The
practice of writing down inventories to the lower of cost or net realisable
value is consistent with the view that assets should not be carried in excess
of amounts expected to be realised from their sale or use.
6. Finance costs and unwinding of obligations
Year
Quarter ended ended
Mar Dec Mar Dec
2014 2013 2013 2013
Reviewed Reviewed Reviewed Audited
US Dollar million
Finance costs 64 67 49 247
Unwinding of obligations, accretion of
convertible bonds and other discounts 7 8 15 49
71 75 64 296
7. Share of associates and joint ventures' profit (loss)
Year
Quarter ended ended
Mar Dec Mar Dec
2014 2013 2013 2013
Reviewed Reviewed Reviewed Audited
US Dollar million
Revenue 117 117 80 334
Operating costs, special items and other
expenses (99) (111) (71) (315)
Net interest received 2 1 - 4
Profit before taxation 20 7 9 23
Taxation (1) (2) (9) (21)
Profit after taxation 19 5 - 2
Net impairment of investments in
associates and joint
ventures (note 9) - (1) (7) (164)
19 4 (7) (162)
8. Taxation
Year
Quarter ended ended
Mar Dec Mar Dec
2014 2013 2013 2013
Reviewed Reviewed Reviewed Audited
US Dollar million
South African taxation
Mining tax 14 1 17 7
Non-mining tax (3) - - 1
Prior year over provision (2) (25) (1) (26)
Deferred taxation
Temporary differences (20) 13 10 (39)
Unrealised non-hedge derivatives and other
commodity contracts (4) 8 - 25
(15) (3) 25 (32)
Foreign taxation
Normal taxation 46 96 54 160
Prior year over provision (3) - - (8)
Deferred taxation(1)
Temporary differences 33 333 17 (453)
77 429 72 (301)
62 426 98 (333)
(1) Included in temporary differences under Foreign taxation in 2013, is a
tax credit relating to impairments, derecognition of assets of $915m and
write-down of inventories of $68m. In addition, in quarter four of 2013,
deferred tax assets of $270m and $60m were derecognised in Obuasi and CC&V
respectively.
9. Headline earnings (loss)
Year
Quarter ended ended
Mar Dec Mar Dec
2014 2013 2013 2013
Reviewed Reviewed Reviewed Audited
US Dollar million
The profit (loss) attributable to equity
shareholders has been adjusted by the
following to arrive at headline (loss)
earnings:
Profit (loss) attributable to equity
shareholders 39 (305) 239 (2,230)
Net impairment and derecognition of
goodwill, tangible assets and intangible
assets (note 5) - 36 1 3,029
Net loss (profit) on disposal and
derecognition of land, mineral rights,
tangible assets and exploration properties
(note 5) 2 - 1 (2)
Impairment of other investments (note 5) - 1 12 30
Net impairment of investments in associates
and joint ventures (note 7) - 1 7 164
Special items of associates and joint
ventures - 2 - 2
Taxation - current portion - 1 - -
Taxation - deferred portion (3) (12) (1) (915)
38 (276) 259 78
Headline earnings (loss) per ordinary share
(cents) (1) 9 (68) 67 20
Diluted headline earnings (loss) per
ordinary share (cents) 9 (68) 32 (62)
(1) Calculated on the basic weighted average number of ordinary shares.
10. Number of shares
Quarter ended Year ended
Mar Dec Mar Dec
2014 2013 2013 2013
Reviewed Reviewed Reviewed Audited
Authorised number of shares:
Ordinary shares of 25 SA cents each 600,000,000 600,000,000 600,000,000 600,000,000
E ordinary shares of 25 SA cents each 4,280,000 4,280,000 4,280,000 4,280,000
A redeemable preference shares of 50 SA cents each 2,000,000 2,000,000 2,000,000 2,000,000
B redeemable preference shares of 1 SA cent
each 5,000,000 5,000,000 5,000,000 5,000,000
Issued and fully paid number of shares:
Ordinary shares in issue 403,087,362 402,628,406 383,626,668 402,628,406
E ordinary shares in issue 697,896 712,006 1,610,376 712,006
Total ordinary shares: 403,785,258 403,340,412 385,237,044 403,340,412
A redeemable preference shares 2,000,000 2,000,000 2,000,000 2,000,000
B redeemable preference shares 778,896 778,896 778,896 778,896
In calculating the basic and diluted number of ordinary shares outstanding for
the period, the following were taken into consideration:
Ordinary shares 402,785,093 402,462,266 383,423,554 389,184,639
E ordinary shares 704,108 1,062,510 1,613,092 1,460,705
Fully vested options 2,477,845 1,477,629 2,038,229 1,979,920
Weighted average number of shares 405,967,046 405,002,405 387,074,875 392,625,264
Dilutive potential of share options 1,185,208 - 1,210,482 -
Dilutive potential of convertible bonds - - 18,140,000 12,921,644
Diluted number of ordinary shares 407,152,254 405,002,405 406,425,357 405,546,908
11. Share capital and premium
As at
Mar Dec Mar
2014 2013 2013
Reviewed Audited Reviewed
US Dollar Million
Balance at beginning of period 7,074 6,821 6,821
Ordinary shares issued 13 259 11
E ordinary shares issued and cancelled - (6) -
Sub-total 7,087 7,074 6,832
Redeemable preference shares held within the group (53) (53) (53)
Ordinary shares held within the group - (6) (11)
E ordinary shares held within the group (10) (9) (16)
Balance at end of period 7,024 7,006 6,752
Rounding of figures may result in computational discrepancies.
12. Exchange rates
Mar Dec Mar
2014 2013 2013
Unaudited Unaudited Unaudited
ZAR/USD average for the year to date 10.82 9.62 8.91
ZAR/USD average for the quarter 10.82 10.12 8.91
ZAR/USD closing 10.52 10.45 9.21
AUD/USD average for the year to date 1.12 1.03 0.96
AUD/USD average for the quarter 1.12 1.08 0.96
AUD/USD closing 1.08 1.12 0.96
BRL/USD average for the year to date 2.36 2.16 2.00
BRL/USD average for the quarter 2.36 2.27 2.00
BRL/USD closing 2.26 2.34 2.01
ARS/USD average for the year to date 7.60 5.48 5.01
ARS/USD average for the quarter 7.60 6.07 5.01
ARS/USD closing 8.00 6.52 5.12
13. Capital commitments
Mar Dec Mar
2014 2013 2013
Reviewed Audited Reviewed
US Dollar Million
Orders placed and outstanding on capital contracts
at the prevailing rate of exchange (1) 379 437 1,210
(1) Includes capital commitments relating to associates and joint ventures.
Rounding of figures may result in computational discrepancies.
Liquidity and capital resources
To service the above capital commitments and other operational requirements,
the group is dependent on existing cash resources, cash generated from
operations and borrowing facilities.
Cash generated from operations is subject to operational, market and other
risks. Distributions from operations may be subject to foreign investment,
exchange control laws and regulations and the quantity of foreign exchange
available in offshore countries. In addition, distributions from joint ventures
are subject to the relevant board approval.
The credit facilities and other finance arrangements contain financial
covenants and other similar undertakings. To the extent that external
borrowings are required, the group's covenant performance indicates that
existing financing facilities will be available to meet the above commitments.
To the extent that any of the financing facilities mature in the near future,
the group believes that sufficient measures are in place to ensure that these
facilities can be refinanced.
14. Change in accounting policies
The following accounting standards, amendments to standards and new
interpretations have been adopted with effect from 1 January 2014:
IFRS 10, IFRS Amendment - Exception from consolidation for "investment
12 and IAS 27 entities"
IAS 32 Amendment - Financial Instruments: Presentation, offsetting
financial assets and financial liabilities
IAS 39 Amendment - Financial instruments, Recognition and
measurement novation of derivatives and continuation of
hedge accounting
IFRIC 21 Levies
15. Non-current assets and liabilities held for sale
Effective 30 April 2013, AngloGold Ashanti announced its plan to sell
the Navachab mine in Namibia. The Navachab gold mine is situated close to
Karibib, about 170 kilometres northwest of the Namibian capital, Windhoek. It
is included in the Continental Africa reporting segment. The open-pit mine,
which began operations in 1989, has a processing plant that handles 120,000
metric tons a month. The mine produced 63,000 ounces of gold in 2013 (2012:
74,000 ounces).
On 10 February 2014, AngloGold Ashanti announced that it signed a binding
agreement to sell Navachab to a wholly-owned subsidiary of QKR Corporation Ltd
(QKR). The agreement provides for an upfront consideration based on an
enterprise value of US$110 million which will be adjusted to take into account
Navachab's net debt and working capital position on the closing date of the
transaction. The upfront consideration is payable in cash on the closing date.
In addition, AngloGold Ashanti will receive deferred consideration in the form
of a net smelter return (NSR). The NSR is to be paid quarterly for a period of
seven years following the second anniversary of the closing date and will be
determined at 2% of ounces sold by Navachab during a relevant quarter subject
to a minimum average gold price of US$1,350 per ounce being achieved and capped
at a maximum of 18,750 ounces sold per quarter.
The transaction is subject to fulfilment of a number of conditions precedent,
including Namibian and South African regulatory and third party approvals,
which are expected to be obtained over the next several months. Navachab is not
a discontinued operation and is not viewed as part of the core assets of the
company.
16. Financial risk management activities
Borrowings
The $1.25bn bonds and the mandatory convertible bonds settled in September
2013, are carried at fair value. The convertible bonds, settled 99.1% in August
2013 and in full in November 2013, and rated bonds are carried at amortised
cost and their fair values are their closing market values at the reporting
date. The interest rate on the remaining borrowings is reset on a short-term
floating rate basis, and accordingly the carrying amount is considered to
approximate fair value.
As at
Mar Dec Mar
2014 2013 2013
Reviewed Audited Reviewed
Carrying amount 3,804 3,891 3,506
Fair value 3,743 3,704 3,648
Derivatives
The fair value of derivatives is estimated based on ruling market prices,
volatilities, interest rates and credit risk and includes all derivatives
carried in the statement of financial position.
Embedded derivatives and the conversion features of convertible bonds are
included as derivatives on the statement of financial position.
The following inputs were used in the valuation of the conversion features of
the convertible bonds:
Quarter Quarter Quarter
ended ended ended
Mar 2014 Dec 2013 Mar 2013
Market quoted bond price % - - 101.6
Fair value of bonds excluding conversion
feature % - - 101.6
Fair value of conversion feature % - - -
Total issued bond value $m - - 732.5
The option component of the convertible bonds is calculated as the difference
between the price of the bonds including the option component (bond price) and
the price excluding the option component (bond floor price).
Derivative assets (liabilities) comprise the following:
Assets Liabilities Assets Liabilities Assets Liabilities
non- non- non- non- non- non-
hedge hedge hedge hedge hedge hedge
accounted accounted accounted accounted accounted accounted
US Dollar March 2014
million December 2013 March 2013
Embedded
derivatives - - - - - (1)
Option
component
of
convertible
bonds - - - - - -
Total
derivatives - - - - - (1)
The group uses the following hierarchy for determining and disclosing the fair
value of financial instruments:
Level 1: quote prices (unadjusted) in active markets for identical assets
or liabilities;
Level 2: inputs other than quoted prices included in level 1 that are
observable for the asset or liability, either directly (as prices) or
indirectly (derived from prices); and
Level 3: inputs for the asset or liability that are not based on
observable market data (unobservable inputs).
The following tables set out the group's financial assets and liabilities
measured at fair value by level within the fair value hierarchy:
Type of instrument
Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total
US Dollar million March 2014 December 2013 March 2013
Assets measured at
fair value
Available-for-sale
financial assets
Equity securities 60 - - 60 47 - - 47 56 2 - 58
Liabilities
measured at fair
value
Financial
liabilities at
fair value through
profit or loss
Option component
of convertible
bonds - - - - - - - - - - - -
Embedded
derivatives - - - - - - - - - 1 - 1
Mandatory
convertible bonds - - - - - - - - 448 - - 448
$1.25bn bonds 1,400 - - 1,400 1,353 - - 1,353 - - - -
Rounding of figures may result in computational discrepancies.
17. Contingencies
AngloGold Ashanti's material contingent liabilities and assets at 31 March are
detailed below:
Contingencies and guarantees
Mar Mar
2014 2013
Reviewed Restated
US Dollar million
Contingent liabilities
Groundwater pollution (1) - -
Deep groundwater pollution - Africa (2) - -
Indirect taxes - Ghana (3) 29 25
Litigation - Ghana (4) (5) (6) 97 -
ODMWA litigation (7) 211 -
Other tax disputes - AngloGold Ashanti Brasil Mineração
Ltda (8) 38 40
Sales tax on gold deliveries - Mineração Serra Grande
S.A.(9) 107 161
Other tax disputes - Mineração Serra Grande S.A.(10) 17 19
Tax dispute - AngloGold Ashanti Colombia S.A.(11) 191 156
Tax dispute - Cerro Vanguardia S.A.(12) 52 -
Tax dispute - AngloGold Ashanti Ltd.(13) 8 -
Contingent assets
Indemnity - Kinross Gold Corporation (14) (64) (93)
Royalty - Tau Lekoa Gold Mine (15) - -
Financial Guarantees
Oro Group (Pty) Limited (16) 10 11
696 319
Groundwater pollution - AngloGold Ashanti Limited has identified groundwater
contamination plumes at certain of its operations, which have occurred
primarily as a result of seepage.Numerous scientific, technical and legal
studies have been undertaken toassist in determining themagnitude ofthe
contamination and to find sustainable remediation solutions. The group has
instituted processes to reduce future potential seepage and it has been
demonstrated that Monitored Natural Attenuation (MNA) by the existing
environment will contribute to improvements in some instances. Furthermore,
literature reviews, field trials and base line modelling techniques suggest,
but have not yet proven, that the use of phyto-technologiescan addressthe soil
and groundwater contamination. Subject to the completion of trials and the
technology being a proven remediation technique, no reliable estimate can be
made for the obligation.
Deepgroundwater pollution - The group has identified a floodingand future
pollution risk posed by deep groundwater in certain underground mines in
Africa. Various studies have been undertaken by AngloGold Ashanti
Limited since 1999. Due to the interconnected nature of mining operations,
any proposed solution needs to be a combined one supported by all the mines
located in these gold fields. As a result, in South Africa, the Mineral and
Petroleum Resources Development Act (MPRDA) requires that the affected mining
companies develop a Regional Mine Closure Strategy to be approved by the
Department ofMineral Resources. In view of the limitation of current
information for the accurate estimation of a liability, no reliable estimate
can be made for the obligation.
Indirecttaxes - AngloGoldAshanti (Ghana)Limited (AGAG) received a tax
assessment for the 2006 to 2008 and for the 2009 to 2011 tax years following
audits by the tax authorities which related to variousindirect taxes amounting
to $29m (2013: $25m). Management is of the opinion that the indirect taxes were
not properlyassessed and the company has lodged an objection.
Litigation - On 11 October 2011, AGAG terminated its commercial
arrangements with Mining and Building Contractors Limited (MBC) relating
to certain underground development, construction on bulkheads and diamond
drilling services providedby MBC in respect of the Obuasi mine. On 8
November 2012, as a result of this termination, AGAG and MBC concluded
a separation agreement that specified the terms on which the parties
agreedto sever their commercial relationship. On 23 July 2013, MBC commenced
proceedings against AGAG in the High Court of Justice (Commercial Division) in
Accra, Ghana, and served a writ of summons thatclaimed a total of approximately
$97m in damages. MBC asserts variousclaims for damages, including, among
others, as a result of the breach of contract, non-payment ofoutstanding
historical indebtedness by AGAG and the demobilisation ofequipment, spare parts
and materialacquired by MBC for the benefit of AGAG in connection with
operations at the Obuasimine in Ghana.MBC has also asserted various labour
claims on behalfof itself and certain of its former contractors andemployees at
the Obuasimine. On 9 October 2013, AGAG filed a motion in court to refer the
action or a part thereof to arbitration. This motion was set to be heard on 25
October 2013, however, on 24 October 2013, MBC filed a motion to discontinuethe
action with liberty to reapply. On 20 February 2014, AGAG was served with a new
writ for approximately $97m, as previously claimed. On 5 May 2014, the court
dismissed AGAG's application for stay of proceedings pending arbitration and
ordered AGAG to file its statement of defence within 14 days. AGAG intends to
appeal this ruling.
Litigation - AGAG received a summons on 2 April 2013 from Abdul Waliyu and 152
others in which the plaintiffs allege that they were or are residents of the
Obuasi municipality or its suburbs and that their health has been adversely
affected by emission and/or other environmental impacts arising in
connection with the currentand/or historical operations of the Pompora
Treatment Plant (PTP) which was decommissioned in 2000. The claim is to award
general damages, special damages for medical treatment and punitive damages, as
well as several orders relating to the operation of the PTP. The plaintiffs
subsequently amended their writ to include their respective addresses. AGAG
filed a defence to the amended writ on 16 July 2013 and are awaiting the
plaintiffs to apply for directions. In view of the limitation of
currentinformation for the accurate estimation of a liability, no
reliableestimate can be made for the obligation.
Litigation - five executive members of the PTP (AGA) Smoke Effect
Association (PASEA) sued AGAG on 24 February 2014 in their personal
capacity and on behalf of the members of PASEA. The plaintiffs
claim that they were residents of Tutuka, Sampsonkrom, Anyimadukrom,
Kortkortesua, Abomperkrom, and PTP Residential Quarters, all suburbs
of Obuasi, in close proximity to the now decommissioned Pompara Treatment
Plant (PTP). The plaintiffs claim they have been adversely affected by the
operations of the PTP. In view of the limitation of current information for the
accurate estimation of a liability, no reliable estimate can be made for the
obligation.
Occupational Diseases in Mines and Works Act (ODMWA) litigation - On 3 March
2011, in Mankayivs. AngloGold Ashanti, the Constitutional Court of South
Africa held that section 35(1) of the Compensation for Occupational Injuries
and Diseases Act, 1993 does not cover an "employee" who qualifies for
compensation in respect of "compensable diseases" under the Occupational
Diseases in Mines and Works Act, 1973 (ODMWA). Thisjudgement allows such
qualifying employee to pursue a civil claim for damages against the employer.
Following the Constitutional Courtdecision, AngloGold Ashanti has become
subject to numerous claims relating to Silicosis and other Occupational Lung
Diseases (OLD), including several potential class actions and individual
claims.
For example, on or about 21 August 2012, AngloGold Ashanti was served
with an application instituted by Bangumzi Bennet Balakazi ("the Balakazi
Action") and others in which the applicants seek an order declaring that all
mine workers (former or current) who previously worked or continue to work in
specified South African gold mines for the period owned by AngloGold Ashanti
and who have silicosis or other OLD constitute members of a class for the
purpose of proceedingsfor declaratory relief and claims for damages. In the
event the class is certified, such class of workers would be permitted to
institute actions by way of a summons against AngloGold Ashanti for amounts asyet unspecified. On 4 September 2012, AngloGold Ashanti delivered its notice
of intention to defend this application. AngloGold Ashanti also delivered a
formal request for additional information that it requires to prepare its
affidavits in respect to the allegations and the requestfor certification ofa
class.
In addition, on or about 8 January 2013, AngloGold Ashanti and its
subsidiaryFree State Consolidated Gold Mines (Operations) Limited, alongside
other mining companies operating in South Africa, were served with
another application to certify a class ("the Nkala Action"). The
applicants in the case seek to have the court certify two classes
namely: (i) current and former mineworkers who have silicosis (whether
or not accompanied by any other disease) and who work or have worked on
certain specified gold mines at any time from 1 January 1965 to date; and
(ii) the dependants of mineworkers who died as a result of silicosis
(whether or not accompanied by any other disease) and who worked
on these gold mines at any time after 1 January 1965. AngloGold Ashanti
filed a notice of intention to oppose the application.
On 21 August 2013, an application was served on AngloGold Ashanti, for the
consolidation of the Balakazi Action and the Nkala Action, as well as a
request for an amendment to change the scope of the classes the court was
requested to certify in the previous applications that were initiated.
The applicants now request certification oftwo classes (the "silicosis class"
and the "tuberculosis class"). The silicosis class would consist of certain
current and former mineworkers who have contracted silicosis, and the
dependants of certain deceased mineworkers who have died of silicosis
(whether or notaccompanied by any other disease). The tuberculosis class would
consist of certain current and former mineworkers whohave or had contracted
pulmonarytuberculosis and the dependants of certain deceased mineworkers
whodied of pulmonary tuberculosis (but excluding silico-tuberculosis).
AngloGold Ashanti will defend against the request for certification of these
classes in 2014.
In October 2012, AngloGoldAshanti received a further 31 individual summonses
and particulars of claim relating to silicosis and/or other OLD. The total
amount claimed in the 31 summonses is approximately $7 million. On 22 October
2012, AngloGoldAshanti filed a notice of intentionto oppose these claims and
took legal exception to the summonses on the groundthat certain particulars
ofclaim were unclear. On 4 April 2014, the High Court of South Africa dismissed
these exceptions and on 25 April 2014, Anglogold Ashanti filed its plea in this
matter. The company will continue to defend these cases on their merits.
On or about 3 March 2014, AngloGold Ashanti received an additional 21
individual summonses and particulars of claim relating to silicosis and/or
other OLD. The total amount claimed in the 21 summonses is approximately $4.5
million. AngloGold Ashanti has filed a notice of intention to oppose these
claims. On 2 May 2014 AngloGold Ashanti filed a notice taking legal exception
to the summonses on the ground that certain particulars of claim were unclear.
The court date has not yet been set to hear the exceptions.
On or about 24 March 2014, AngloGold Ashanti received a further 686 individual
summonses and particulars of claim relating to silicosis and/or other OLD. The
total amount claimed in the 686 summonses is approximately $109 million.
AngloGold Ashanti has filed a notice of intention to oppose these claims. On 15
May 2014 AngloGold Ashanti filed a notice taking legal exception to the
summonses on the ground that certain particulars of claim were unclear. The
court date has not yet been set to hear the exceptions.
On or about 1 April 2014, AngloGold Ashanti received a further 518 individual
summonses and particulars of claim relating to silicosis and/or other OLD. The
total amount claimed in the 518 summonses isapproximately $90 million.
AngloGold Ashanti has filed a notice of intention to oppose these claims. On 15
May 2014 AngloGold Ashanti filed a notice taking legal exception to the
summonses on the ground that certain particulars of claim were unclear. The
court date has not yet been set to hear the exceptions.
It is possible that additional class actions and/or individual claims
relating to silicosis and/or other OLD will be filed against AngloGold
Ashanti in the future. AngloGoldAshanti will defend all current and
subsequently filed claims on their merits. Should AngloGold Ashanti be
unsuccessfulin defending any such claims, or in otherwise favourably resolving
perceived deficiencies in the national occupational disease compensation
framework that were identified in the earlierdecision by the Constitutional
Court, such matters would have an adverse effect on its financial position,
which could be material. The company isunable to reasonably estimate its
share of the amounts claimed.
(8) Other tax disputes - In November 2007, the Departamento
Nacional de Produção Mineral (DNPM), a Brazilian federal mining
authority, issued a tax assessment against AngloGoldAshanti Brazil Mineração
Ltda(AABM) in the amount of $20m (2013: $21m) relating to the calculation
andpayment by AABM of the financial contribution on mining exploitation (CFEM)
in the period from 1991 to 2006. AngloGold Ashanti Limited's subsidiaries in
Brazil are involved in various other disputes with tax authorities. These
disputes involve federal tax assessments including income tax,
royalties, social contributions and annual property tax. The amount
involved is approximately $18m (2013:$19m). Management isof the opinionthat
these taxes are not payable.
(9) Sales tax on gold deliveries - In 2006, MineraçãoSerra
Grande S.A. (MSG), received two tax assessments from the State of Goiás related
to payments of state sales taxes at the rate of 12% on gold deliveriesfor
export from one Brazilian state to another during the period from February2004
to the end of May 2006. The first and second assessments areapproximately $66m
(2013:$99m) and $41m (2013: $62m) respectively. In November 2006, the
administrative council's second chamber ruled in favour of MSG and fully
cancelled the tax liability related to the first period. In July 2011, the
administrative council's second chamber ruled in favour of MSG and fully
cancelled the tax liability related to the second period. The State of
Goiáshas appealed to the full board of the State of Goiástax administrative
council. In November2011 (first case) and June 2012 (second case), the
administrative council's full board approved the suspension of proceedings and
the remittance of the matter to the Department of Supervision of Foreign
Trade (COMEX) for review and verification. On 28 May 2013, the Full Board of
the State of Goiás Tax Administrative Council ruled in favour of the State of
Goiás, however reduced the penalties of the two tax assessments from 200% to
80%. The company is considering legal options available in this matter, since
it believes thatboth assessments arein violation of federal legislation on
sales taxes. MSG willbe required to provide a bank guarantee to the tax
authorities to proceed with legal discussion at the judiciary level. A decree
has been signed by the Governor of the State of Goias which will enable
companies to settle outstanding tax assessments. The implementing regulations
are currently being drafted and MSG will be considering the options that may be
open to it under the decree and implementing regulations which may result in
the contingent liability referred to above being settled. Until the regulations
are published and assessed by MSG it is not possible to determine any
settlement value.
(10) Other tax disputes - MSG received a tax assessment inOctober
2003 from the State of Minas Gerais related to sales taxes on gold.The tax
administrators rejected the company's appeal againstthe assessment. The company
is now appealing the dismissal of the case. The assessment is approximately
$17m (2013: $19m).
(11) Tax dispute - AngloGold Ashanti Colombia S.A. (AGAC) received notice
from the Colombian Tax Office (DIAN) that it disagreed with the company's tax
treatment of certain items in the 2011 and 2010 income tax returns. On 23
October 2013 AGAC received the official assessments from the DIAN which
established that an estimated additional tax of $36m (2013: $25m) will be
payable if the tax returns are amended. Penalties and interest for the
additional taxes are expected to be $155m (2013: $131m), based on
Colombian tax law. The company believes thatit has applied the tax
legislation correctly. AGAC requested thatDIAN reconsider its decision andthe
company has been officially notified that DIAN will review its earlier
ruling.This review is anticipated to take twelve months, at the endof which
AGAC may file suit if the ruling is not reversed.
(12) Tax dispute - On 12 July 2013, Cerro Vanguardia S.A. received
a notification from the Argentina Tax Authority requesting corrections
to the 2007, 2008 and 2009 income tax returns of about $15m relating to the
non-deduction of tax losses previously claimed on hedge contracts. Penalties
and interest on the disputed amounts are estimated at a further $37m.
Management is of the opinion that the taxes are not payableand is preparing a
response.
(13) Tax dispute - on 7 April 2014 AngloGold Ashanti Limited received
notification from the South African Revenue Service that certain corporate
expenses have been disallowed. The total amount including penalties and
interest is estimated at $8m and the company will be appealing against this
decision.
(14) Indemnity - As part of the acquisition by AngloGold Ashanti Limited of
the remaining 50% interest inMSG during June 2012, Kinross Gold Corporation
(Kinross)has provided an indemnity to a maximum amount of BRL255m against the
specific exposures discussed in items 8 and 9 above. At 31 December 2013, the
company has estimated that the maximum contingentasset is $64m (2013: $93m).
(15) Royalty - As a result of the sale of the interest in the Tau Lekoa Gold
Mine during2010, the group is entitled to receive a royalty on the production
of a total of 1.5Moz by the Tau LekoaGold Mine and in the event that the
average monthly rand price of gold exceeds R180,000/kg (subject to an
inflation adjustment).Where the average monthly rand price of gold
does not exceed R180,000/kg (subject to an inflation adjustment), the
ounces produced in that quarter do not count towards the total 1.5Moz upon
which the royalty is payable. The royalty is determined at 3% of the net
revenue (being gross revenue less state royalties) generated by the Tau
Lekoaassets. Royalties on 435,986oz (2013: 331,558oz) produced have been
received to date.
(16) Provision of surety - The company has provided surety in favour of a
lender on a gold loan facility with its associate Oro Group (Pty) Limited
andone of its subsidiaries to a maximum value of $10m (2013: $11m). The
probability of the non- performance under the surety ships is considered
minimal. The suretyship agreements have a termination notice period of 90 days.
18. Concentration of tax risk
There is a concentration of tax risk in respect of recoverable value
added tax, fuel duties and appeal deposits from the Tanzanian government.
The recoverable value added tax, fuel duties and appeal deposits are
summarised as follows:
2014
US Dollar million
Recoverable fuel duties (1) 17
Recoverable value added tax 19
Appeal deposits 4
Fuel duty claims are required to be submitted after consumption of the related
fuel and are subject to authorisation by the Customs and Excise authorities.
19. Borrowings
AngloGold Ashanti's borrowings are interest bearing.
20. Subsequent events
In February 2014, Cerro Vanguardia Sociedad Anonima (a 92.5% held subsidiary of
AngloGold Ashanti Limited) entered into a sale agreement with Franco Nevada
Corporation, subject to certain conditions, related to the 2.0% NSR royalty on
Yamana's Gold Inc.'s Cerro Moro project located in Argentina for a cash
consideration equal to the Argentine peso equivalent of US$23.5 million (as
determined at the official Argentine peso/US$ exchange rate on closing). The
conditions were met and the transaction closed on 24 April 2014.
21. Announcements
AMCU Strike Notice: On 20 January 2014, AngloGold Ashanti confirmed that the
Association of Mineworkers and Construction Union (AMCU) had served notice that
it intended to call a strike by its members at the company's South Africa
operations, starting Thursday,
23 January 2014.
Threatened strike by AMCU declared unprotected: On 30 January 2014, AngloGold
Ashanti announced that South Africa's Labour Court had ruled that a strike
threatened by AMCU at the company's South Africa mines would be unprotected,
and that employees should continue to proceed to work. Also, on 30 January
2014, the court granted an interim interdict and ruled that AMCU must return to
court on 14 March 2014 to explain why the interim interdict should not be made
permanent.
On 14 March 2014, a postponement was requested and a new court date was set for
5 June 2014. The interim interdict will remain in force until 5 June 2014.
AngloGold Ashanti enters into agreement to sell Navachab mine: On 10 February
2014, AngloGold Ashanti announced that it had signed a binding agreement,
subject to certain conditions, to sell its entire interest in AngloGold Ashanti
Namibia (Proprietary) Limited, a wholly owned subsidiary which owns the
Navachab Gold Mine, to a wholly-owned subsidiary of QKR Corporation Limited.
The agreement provided for an upfront consideration based on an enterprise
value of US$110 million which will be adjusted to take into account the mine's
net debt and working capital position on the closing date of the transaction
and is subject to a number of conditions precedent.
Changes to the Board of Directors: On 17 February 2014, AngloGold Ashanti
announced that as a result of his increasing portfolio of professional
commitments, Mr TT Mboweni had decided not to stand for re-election as an
independent Non-Executive Director at the Annual General Meeting to be held on
14 May 2014. Mr Mboweni also stood down as Chairman on the same date. Mr SM
Pityana was elected unanimously by the board to take over from Mr Mboweni. Prof
LW Nkuhlu was also appointed Lead Independent Director.
AngloGold Ashanti announces new board appointment: on 25 March 2014 AngloGold
Ashanti announced the appointment of Mr David L Hodgson as an independent
non-executive director to its Board of Directors, with effect from
25 April 2014.
By order of the Board
S M PITYANA S VENKATAKRISHNAN
Chairman Chief Executive Officer
12 May 2014
Non-GAAP disclosure
From time to time AngloGold Ashanti Limited may publicly disclose certain
"Non-GAAP" financial measures in the course of its financial presentations,
earnings releases, earnings conference calls and otherwise.
The group uses certain Non-GAAP performance measures and ratios in managing the
business and may provide users of this financial information with additional
meaningful comparisons between current results and results in prior operating
periods. Non-GAAP financial measures should be viewed in addition to, and not
as an alternative to, the reported operating results or any other measure of
performance prepared in accordance with IFRS. In addition, the presentation of
these measures may not be comparable to similarly titled measures that other
companies use.
A Adjusted headline earnings
Quarter Quarter Quarter Year-ended
ended ended ended
Mar Dec Mar Dec
2014 2013 2013 2013
Unaudited Unaudited Unaudited Unaudited
US Dollar US Dollar US Dollar US Dollar
million million million million
Headline earnings (loss) (note 9) 38 (276) 259 78
Loss (gain) on unrealised non-hedge 16 (28) - (94)
derivatives and
other commodity contracts
Deferred tax on unrealised (4) 8 - 25
non-hedge derivatives and
other commodity contracts (note
8)
Derecognition of deferred tax - 330 - 330
assets
Fair value adjustment on $1.25bn 70 12 - 58
bonds
Fair value adjustment on option - - (9) (9)
component of convertible bonds
Fair value adjustment on mandatory - - (137) 211
convertible bonds
Adjusted headline earnings 119 45 113 599
Adjusted headline earnings per 29 11 29 153
ordinary share (cents) (1)
(1) Calculated on the basic weighted average number of ordinary shares.
B Adjusted gross profit
Quarter Quarter Quarter Year-ended
ended ended ended
Mar Dec Mar Dec
2014 2013 2013 2013
Unaudited Unaudited Unaudited Unaudited
US Dollar US Dollar US Dollar US Dollar
milion milion milion milion
Reconciliation of gross profit to
adjusted gross profit:
Gross profit 296 404 434 1,445
Loss (gain) on unrealised 16 (28) - (94)
non-hedge derivatives and
other commodity contracts
Adjusted gross profit 312 376 434 1,351
C Price received
Quarter Quarter Quarter Year-ended
ended ended ended
Mar Dec Mar Dec
2014 2013 2013 2013
Unaudited Unaudited Unaudited Unaudited
US Dollar US Dollar US Dollar US Dollar
million / million / million / million /
Imperial Imperial Imperial Imperial
Gold income (note 2) 1,324 1,418 1,463 5,497
Adjusted for non-controlling (20) (15) (22) (77)
interests
1,304 1,403 1,441 5,420
Realised loss on other 5 6 7 26
commodity contracts
Associates and joint 106 105 69 290
ventures' share of gold
income including realised
non-hedge derivatives
Attributable gold income 1,415 1,514 1,517 5,736
including realised non-hedge
derivatives
Attributable gold sold - oz 1,097 1,191 927 4,093
(000)
Revenue price per unit - $/ 1,290 1,271 1,636 1,401
oz
Rounding of figures may result in computational discrepancies.
Quarter Quarter Quarter Year-ended
ended ended ended
Mar Dec Mar Dec
2014 2013 2013 2013
Unaudited Unaudited Unaudited Unaudited
US Dollar US Dollar US Dollar US Dollar
million / million / million / million /
Imperial Imperial Imperial Imperial
D All-in sustaining costs 1
Cost of sales (note 3) 1,012 1,042 1,029 4,146
Amortisation of tangible and (184) (211) (215) (799)
intangible assets (note 3)
Adjusted for decommissioning 2 2 2 6
amortisation
Inventory writedown to net - 38 - 216
realisable value and other
stockpile
adjustments (note 5)
Corporate administration and 25 36 65 199
marketing related to current
operations
Associates and joint ventures' 68 90 47 234
share of costs
Sustaining exploration and 10 16 31 94
study costs
Total sustaining capex 174 253 243 999
All-in sustaining costs 1,107 1,265 1,202 5,095
Adjusted for non-controlling (17) (16) (19) (71)
interests and non -gold
producing companies
All-in sustaining costs 1,090 1,249 1,183 5,024
adjusted for non-controlling
interests and
non-gold producing companies
Adjusted for stockpile - (38) - (216)
write-offs
All-in sustaining costs 1,090 1,211 1,183 4,808
adjusted for non-controlling
interests, non-gold
producing companies and
stockpile write-offs
All-in sustaining costs 1,107 1,265 1,202 5,095
Non-sustaining Project capex 100 224 269 994
Technology improvements 4 7 2 14
Non-sustaining exploration and 21 28 53 175
study costs
Corporate and social 5 1 1 21
responsibility costs not
related to current operations
All-in costs 1,237 1,525 1,527 6,299
Adjusted for non-controlling (14) (16) (23) (81)
interests and non -gold
producing companies
All-in costs adjusted for 1,223 1,509 1,504 6,218
non-controlling interests and
non-gold producing companies
Adjusted for stockpile - (38) - (216)
write-offs
All-in costs adjusted for 1,223 1,471 1,504 6,002
non-controlling interests,
non-gold producing
companies and stockpile
write-offs
Gold sold - oz (000) 1,097 1,191 927 4,093
All-in sustaining cost 993 1,015 1,275 1,174
(excluding stockpile
write-offs) per unit - $/oz
All-in cost per unit (excluding 1,114 1,233 1,622 1,466
stockpile write-offs) - $/oz
1 Refer to note J for summary
of operations by mine
E Total costs 2
Total cash costs (note 3) 778 861 797 3,297
Adjusted for non-controlling (34) (20) (39) (110)
interests, non-gold producing
companies and other
Associates and joint ventures' 68 79 46 219
share of total cash costs
Total cash costs adjusted for 812 920 804 3,406
non-controlling interests
and non-gold producing
companies
Retrenchment costs (note 3) 6 16 6 69
Rehabilitation and other 22 (11) 11 18
non-cash costs (note 3)
Amortisation of tangible assets 175 202 213 775
(note 3)
Amortisation of intangible 9 9 2 24
assets (note 3)
Adjusted for non-controlling (4) 17 (6) 14
interests and non-gold
producing companies
Equity-accounted associates and 22 17 1 23
joint ventures' share of
production costs
Total production costs adjusted 1,042 1,170 1,031 4,329
for non-controlling
interests and non-gold
producing companies
Gold produced - oz (000) 1,055 1,229 899 4,105
Total cash cost per unit - $/oz 770 748 894 830
Total production cost per unit 988 952 1,147 1,054
- $/oz
2 Refer to note J for summary
of operations by mine
F EBITDA
Operating profit (loss) 229 235 264 (2,440)
Retrenchment costs (note 3) 6 16 6 69
Amortisation of tangible assets 175 202 213 775
(note 3)
Amortisation of intangible 9 9 2 24
assets (note 3)
Impairment and derecognition of - 36 1 3,029
goodwill, tangible and
intangible assets (note 5)
Impairment of other investments - 1 12 30
(note 5)
Net loss (profit) on disposal 2 - 1 (2)
and derecognition of assets
(note 5)
Loss (gain) on unrealised 16 (28) - (94)
non-hedge derivatives and other
commodity contracts
Write-down of stockpiles and - 38 - 216
heap leach to net realisable
value and other
stockpile adjustments (note 5)
Write-off of a loan to SOKIMO - - - 7
(note 5)
Share of equity-accounted 39 34 10 53
associates and joint ventures'
EBITDA
476 544 509 1,667
Quarter Quarter Quarter Year- ended
ended ended ended
Mar Dec Mar Dec
2014 2013 2013 2013
Unaudited Unaudited Unaudited Unaudited
US Dollar US Dollar US Dollar US Dollar
million / million / million / million /
Imperial Imperial Imperial Imperial
G Interest cover
EBITDA (note F) 476 544 509 1,667
Finance costs (note 6) 64 67 49 247
Capitalised finance costs - - 4 5
64 67 53 252
Interest cover - times 7 8 10 7
As at As at As at
Mar Dec Mar
2014 2013 2013
Unaudited Unaudited Unaudited
US Dollar US Dollar US Dollar
million million million
H Net asset value - cents per
share
Total equity 3,175 3,107 5,569
Mandatory convertible bonds - - 448
3,175 3,107 6,017
Number of ordinary shares in 404 403 385
issue - million (note 10)
Net asset value - cents per 786 770 1,562
share
Total equity 3,175 3,107 5,569
Mandatory convertible bonds - - 448
Intangible assets (269) (267) (321)
2,906 2,840 5,696
Number of ordinary shares in 404 403 385
issue - million (note 10)
Net tangible asset value - 720 704 1,479
cents per share
I Net debt
Borrowings - long-term portion 3,569 3,633 2,844
Borrowings - short-term portion 235 258 214
Bank overdraft 22 20 -
Total borrowings (1) 3,826 3,911 3,058
Corporate office lease (24) (25) (29)
Unamortised portion of the (3) 2 33
convertible and rated bonds
Fair value adjustment on (128) (58) -
$1.25bn bonds
Cash restricted for use (51) (77) (63)
Cash and cash equivalents (525) (648) (680)
Net debt excluding mandatory 3,095 3,105 2,319
convertible bonds
(1) Borrowings exclude the mandatory convertible bonds (note H).
Rounding of figures may result in computational discrepancies.
J Summary of Operations by mine
For the three months ended 31 March 2014
Operations in South Africa
(in $ millions, except as otherwise noted)
Great Kopanang Moab Mponeng TauTona
Noligwa Khotsong
All-in sustaining costs
Cost of sales per financial
statements 22 53 49 74 58
Amortisation of tangible and
intangible assets (2) (20) (12) (17) (17)
Adjusted for decomissioning
amortisation - - - - -
Inventory writedown to net
realisable value and other
stockpile adjustments - - - - -
Corporate administration and
marketing related to current
operations - - - - -
Associates and equity accounted
joint ventures' share of costs(2) - - - - -
Sustaining exploration and study
costs - - - - -
Total sustaining capital
expenditure 1 5 7 14 6
All-in sustaining costs 21 38 44 71 47
Adjusted for non-controlling
interests(1) - - - - -
All-in sustaining costs adjusted for
non-controlling interests 21 38 44 71 47
Gold sold - oz (000)(3) 17 29 55 76 52
All-in sustaining cost (excluding
stockpile impairments) per unit - $/
oz(4) 1,200 1,320 802 930 916
Total cash costs
Total cash costs per financial
statements 19 32 35 54 40
Adjusted for non-controlling
interests, non-gold producing
companies and other (1) - - - - -
Associates and equity accounted
joint ventures' share of total
cash costs (2) - - - - -
Total cash costs adjusted for
non-controlling interests and
non-gold producing companies 19 32 35 54 40
Retrenchment costs - 1 1 2 1
Rehabilitation and other non-cash
costs - 1 1 1 1
Amortisation of tangible assets 1 19 11 16 16
Amortisation of intangible assets - - 1 1 1
Adjusted for non-controlling
interests and non-gold producing
companies (1) - - - - -
Associates and equity accounted
joint ventures' share of
production costs(2) - - - - -
Total production costs adjusted for
non-controlling interests and
non-gold producing companies 20 53 49 74 59
Gold produced - oz (000) (3) 17 29 55 76 52
Total cash costs per unit - $/oz (4) 1,123 1,074 646 709 774
Total production costs per unit - $/
oz (4) 1,258 1,802 888 974 1,125
South Total South
Surface Africa Africa Corporate
operations (Operations) (5)
other
All-in sustaining costs
Cost of sales per financial
statements 56 - 312 1
Amortisation of tangible and
intangible assets (5) 1 (72) (3)
Adjusted for decomissioning
amortisation - - - -
Inventory writedown to net
realisable value and other
stockpile adjustments - - - -
Corporate administration and
marketing related to current
operations - - - 23
Associates and equity accounted
joint ventures' share of costs(2) - - - (1)
Sustaining exploration and study
costs - - - -
Total sustaining capital
expenditure 9 - 42 -
All-in sustaining costs 60 1 282 20
Adjusted for non-controlling
interests(1) - - - 3
All-in sustaining costs adjusted for
non-controlling interests 60 1 282 23
Gold sold - oz (000)(3) 60 - 290
All-in sustaining cost (excluding
stockpile impairments) per unit - $/
oz(4) 1,000 - 975
Total cash costs
Total cash costs per financial
statements 50 1 231 (1)
Adjusted for non-controlling
interests, non-gold producing
companies and other (1) - - - 2
Associates and equity accounted
joint ventures' share of total
cash costs (2) - - - (1)
Total cash costs adjusted for
non-controlling interests and
non-gold producing companies 50 1 231 -
Retrenchment costs - - 5 -
Rehabilitation and other non-cash
costs 1 - 5 (2)
Amortisation of tangible assets 5 (1) 67 1
Amortisation of intangible assets 1 1 5 1
Adjusted for non-controlling
interests and non-gold producing
companies (1) - - - -
Associates and equity accounted
joint ventures' share of
production costs(2) - - - 1
Total production costs adjusted for
non-controlling interests and
non-gold producing companies 57 1 313 1
Gold produced - oz (000) (3) 60 - 290 -
Total cash costs per unit - $/oz (4) 836 - 797 -
Total production costs per unit - $/
oz (4) 934 - 1,077 -
Adjusting for non-controlling interest of items included in calculation, to
disclose the attributable portions only. Other consists of heap leach
inventory.
Attributable costs and related expenses of associates and equity accounted
joint ventures are included in the calculation of total cash costs per ounce
and total production costs per ounce.
Attributable portion.
In addition to the operational performances of the mines, all-in sustaining
cost per ounce, total cash costs per ounce and total production costs per ounce
are affected by fluctuations in the currency exchange rate. AngloGold Ashanti
reports all-in sustaining cost per ounce calculated to the nearest US dollar
amount and gold sold in ounces. 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.
Corporate includes non-gold producing subsidiaries.
Total cash costs per ounce calculation includesheap-leach inventory change.
For the three months ended 31 March 2014
Operations in DRC, Ghana, Guinea, Mali, Namibia and Tanzania
(in $ millions, except as otherwise noted)
DRC GHANA GUINEA MALI
Kibali Iduapriem Obuasi Siguiri Morila Sadiola Yatela
All-in sustaining costs
Cost of sales per
financial statements - 52 71 78 - - -
Amortisation of
tangible and
intangible assets - (5) (4) (7) - - -
Adjusted for
decomissioning
amortisation - - - 1 - - -
Inventory writedown
to net realisable
value and other
stockpile
adjustments - - - - - - -
Abandonment of
stockpiles - - - - - - -
Corporate
administration and
marketing related to
current operations - - - - - - -
Associates and
equity accounted
joint ventures'
share of costs(2) 28 - - - 11 23 7
Sustaining
exploration and
study costs - - - 1 - - -
Total sustaining
capital expenditure 2 4 14 9 4 1 -
All-in sustaining costs 30 51 81 82 15 24 7
Adjusted for
non-controlling
interests(1) - - - (12) - - -
All-in sustaining costs
adjusted for
non-controlling
interests 30 51 81 70 15 24 7
Gold sold - oz (000)(3) 51 57 53 71 10 17 4
All-in sustaining cost
(excluding stockpile
impairments) per unit -
$/oz(4) 572 898 1,530 961 1,598 1,404 2,062
Total cash costs
Total cash costs per
financial statements - 32 66 66 - - -
Adjusted for
non-controlling
interests, non-gold
producing companies
and other (1) - - - (10) - - -
Associates and
equity accounted
joint ventures'
share of total cash
costs (2) 28 - - - 11 24 6
Total cash costs
adjusted for
non-controlling
interests and non-gold
producing companies 28 32 66 56 11 24 6
Retrenchment costs - - - - - - -
Rehabilitation and
other non-cash costs - 1 2 1 - - -
Amortisation of
tangible assets - 5 4 7 - - -
Amortisation of
intangible assets - - - - - - -
Adjusted for
non-controlling
interests and
non-gold producing
companies (1) - - - (1) - - -
Associates and equity
accounted joint
ventures' share of
production costs(2) 14 - - - 1 6 -
Total production costs
adjusted for
non-controlling
interests and non-gold
producing companies 42 38 72 63 12 30 6
Gold produced - oz
(000) (3) 51 45 53 70 10 19 4
Total cash costs per
unit - $/oz (4) 538 716 1,234 800 1,099 1,262 1,804
Total production costs
per unit - $/oz (4) 806 857 1,346 907 1,215 1,591 1,889
NAMIBIA TANZANIA Continental TOTAL
Africa CONTINENTAL
other AFRICA
Navachab Geita
All-in sustaining costs
Cost of sales per financial
statements 14 109 1 325
Amortisation of tangible and
intangible assets - (18) (1) (35)
Adjusted for decomissioning
amortisation - - - 1
Inventory writedown to net
realisable value and other
stockpile adjustments - - - -
Abandonment of stockpiles - - - -
Corporate administration and
marketing related to current
operations - - 1 1
Associates and equity accounted
joint ventures' share of costs
(2) - - - 69
Sustaining exploration and study
costs - - - 1
Total sustaining capital
expenditure - 36 - 70
All-in sustaining costs 14 127 1 432
Adjusted for non-controlling
interests(1) - - - (12)
All-in sustaining costs adjusted
for non-controlling interests 14 127 1 420
Gold sold - oz (000)(3) 17 122 - 401
All-in sustaining cost (excluding
stockpile impairments) per unit - $
/oz(4) 785 1,048 - 1,042
Total cash costs
Total cash costs per financial
statements 13 67 (1) 243
Adjusted for non-controlling
interests, non-gold producing
companies and other (1) - - - (10)
Associates and equity accounted
joint ventures' share of total
cash costs (2) - - - 69
Total cash costs adjusted for
non-controlling interests and
non-gold producing companies 13 67 (1) 302
Retrenchment costs - 1 - 1
Rehabilitation and other non-cash
costs - 3 - 7
Amortisation of tangible assets - 18 1 35
Amortisation of intangible assets - - 1 1
Adjusted for non-controlling
interests and non-gold producing
companies (1) - - - (1)
Associates and equity accounted
joint ventures' share of
production costs(2) - - - 21
Total production costs adjusted for
non-controlling interests and
non-gold producing companies 13 89 1 366
Gold produced - oz (000) (3) 16 106 - 374
Total cash costs per unit - $/oz
(4) 771 631 - 808
Total production costs per unit - $
/oz (4) 780 832 - 977
For the three months ended 31 March 2014
Operations in Australia, United States of America, Argentina and Brazil
(in $ millions, except as otherwise noted)
UNITED
AUSTRALIA STATES ARGENTINA
OF
TOTAL AMERICA
AUSTRALIA
Sunrise Australia Cripple Cerro
Dam Tropicana other Creek & Vanguardia
Victor
All-in sustaining
costs
Cost of sales per
financial statements 89 62 6 157 43 56
Amortisation of
tangible and
intangible assets (8) (22) - (30) - (8)
Adjusted for
decomissioning
amortisation - 1 - 1 - -
Inventory
writedown to net
realisable value
and other
stockpile
adjustments - - - - - -
Corporate
administration and
marketing related
to current
operations - - 1 1 - -
Associates and
equity accounted
joint ventures'
share of costs(2) - - - - - -
Sustaining
exploration and
study costs - - 2 2 - -
Total sustaining
capital
expenditure 9 18 0 27 4 7
All-in sustaining
costs 90 59 9 158 47 55
Adjusted for
non-controlling
interests(1) - - - - - (4)
All-in sustaining
costs adjusted for
non-controlling
interests 90 59 9 158 47 51
Gold sold - oz (000)
(3) 83 86 - 168 47 65
All-in sustaining
cost (excluding
stockpile
impairments) per
unit - $/oz(4) 1,095 694 - 929 1,015 800
Total cash costs
Total cash costs per
financial statements 75 42 4 121 60 41
Adjusted for
non-controlling
interests,
non-gold producing
companies and
other (1) - - - - (23) (3)
Associates and
equity accounted
joint ventures'
share of total
cash costs (2) - - - - - -
Total cash costs
adjusted for
non-controlling
interests and
non-gold producing
companies 75 42 4 121 37 38
Retrenchment
costs - - - - - -
Rehabilitation
and other
non-cash costs - - 1 1 8 2
Amortisation of
tangible assets 8 22 - 30 - 8
Amortisation of
intangible
assets - - - - - -
Adjusted for
non-controlling
interests and
non-gold
producing
companies (1) - - - - (2) (1)
Associates and
equity accounted
joint ventures'
share of
production costs
(2) - - - - - -
Total production
costs adjusted for
non-controlling
interests and
non-gold producing
companies 83 64 5 152 43 47
Gold produced - oz
(000) (3) 71 84 - 155 52 58
Total cash costs per
unit - $/oz (4) 1,066 495 - 779 699(6) 644
Total production
costs per unit - $/
oz (4) 1,180 751 - 979 826 804
BRAZIL
Americas TOTAL
AngloGold Serra other AMERICAS
Ashanti Grande
Mineracao
All-in sustaining costs
Cost of sales per financial statements 81 37 - 217
Amortisation of tangible and
intangible assets (26) (10) - (44)
Adjusted for decomissioning
amortisation - - - -
Inventory writedown to net
realisable value and other stockpile
adjustments - - - -
Corporate administration and
marketing related to current
operations - - - -
Associates and equity accounted
joint ventures' share of costs(2) - - - -
Sustaining exploration and study
costs 2 1 4 7
Total sustaining capital expenditure 17 7 - 35
All-in sustaining costs 74 35 4 215
Adjusted for non-controlling
interests(1) - - (4) (8)
All-in sustaining costs adjusted for
non-controlling interests 74 35 - 207
Gold sold - oz (000)(3) 92 34 - 237
All-in sustaining cost (excluding
stockpile impairments) per unit - $/oz(4) 805 1,027 - 879
Total cash costs
Total cash costs per financial statements 58 25 - 184
Adjusted for non-controlling
interests, non-gold producing
companies and other (1) - - - (26)
Associates and equity accounted
joint ventures' share of total cash
costs (2) - - - -
Total cash costs adjusted for
non-controlling interests and non-gold
producing companies 58 25 - 158
Retrenchment costs - - - -
Rehabilitation and other
non-cash costs - - 1 11
Amortisation of tangible assets 24 10 - 42
Amortisation of intangible
assets 1 - 1 2
Adjusted for non-controlling
interests and non-gold producing
companies (1) - - - (3)
Associates and equity accounted
joint ventures' share of
production costs(2) - - - -
Total production costs adjusted for
non-controlling interests and non-gold
producing companies 83 35 2 210
Gold produced - oz (000) (3) 94 32 - 236
Total cash costs per unit - $/oz (4) 619 799 - 668
Total production costs per unit - $/oz (4) 895 1,134 - 890
For the three months ended 31 December 2013
Operations in South Africa
(in $ millions, except as otherwise noted)
Great Kopanang Moab Mponeng Savuka
Noligwa Khotsong (7)
All-in sustaining costs
Cost of sales per financial
statements 24 49 56 82 -
Amortisation of tangible and
intangible assets (2) (10) (12) (19) -
Adjusted for decomissioning
amortisation - - - - -
Inventory writedown to net
realisable value and other
stockpile adjustments - - - - -
Corporate administration and
marketing related to current
operations - - - - -
Associates and equity accounted
joint ventures' share of costs(2) - - - - -
Sustaining exploration and study
costs - - - - -
Total sustaining capital
expenditure 4 12 16 26 -
All-in sustaining costs 26 51 60 89 -
Adjusted for non-controlling
interests(1) - - - - -
All-in sustaining costs adjusted for
non-controlling interests 26 51 60 89 -
Gold sold - oz (000)(3) 20 39 67 93 -
All-in sustaining cost (excluding
stockpile impairments) per unit - $/
oz(4) 1,294 1,296 890 963 -
Total cash costs
Total cash costs per financial
statements 20 36 40 61 -
Adjusted for non-controlling
interests, non-gold producing
companies and other (1) - - - - -
Associates and equity accounted
joint ventures' share of total
cash costs (2) - - - - -
Total cash costs adjusted for
non-controlling interests and
non-gold producing companies 20 36 40 61 -
Retrenchment costs 1 2 1 2 -
Rehabilitation and other non-cash
costs 1 2 3 - -
Amortisation of tangible assets 2 9 11 18 -
Amortisation of intangible assets - 1 1 2 -
Adjusted for non-controlling
interests and non-gold producing
companies (1) - - - - -
Associates and equity accounted
joint ventures' share of
production costs(2) - - - - -
Total production costs adjusted for
non-controlling interests and
non-gold producing companies 24 50 56 83 -
Gold produced - oz (000) (3) 20 39 67 93 -
Total cash costs per unit - $/oz (4) 1,032 910 596 656 -
Total production costs per unit - $/
oz (4) 1,198 1,239 835 885 -
South Total South
TauTona Surface Africa Africa Corporate
(7) operations (Operations) (5)
other
All-in sustaining costs
Cost of sales per financial
statements 50 61 - 322 (5)
Amortisation of tangible
and intangible assets (13) (6) (62) (2)
Adjusted for
decomissioning
amortisation - - - - -
Inventory writedown to
net realisable value and
other stockpile
adjustments - - - - (2)
Corporate administration
and marketing related to
current operations - - 2 2 31
Associates and equity
accounted joint ventures'
share of costs(2) - - - - -
Sustaining exploration
and study costs - - - - -
Total sustaining capital
expenditure 16 6 - 80 3
All-in sustaining costs 53 61 2 342 25
Adjusted for
non-controlling interests
(1) - - - - -
All-in sustaining costs
adjusted for non-controlling
interests 53 61 2 342 25
Gold sold - oz (000)(3) 62 59 - 340
All-in sustaining cost
(excluding stockpile
impairments) per unit - $/oz
(4) 852 1,039 - 1,005
Total cash costs
Total cash costs per
financial statements 50 53 - 260 (8)
Adjusted for
non-controlling
interests, non-gold
producing companies and
other (1) - - - - 8
Associates and equity
accounted joint ventures'
share of total cash costs
(2) - - - - -
Total cash costs adjusted
for non-controlling
interests and non-gold
producing companies 50 53 - 260 -
Retrenchment costs - - - 6 (1)
Rehabilitation and other
non-cash costs (13) 1 (2) (8) -
Amortisation of tangible
assets 12 6 - 58 1
Amortisation of intangible
assets 1 - - 5 1
Adjusted for
non-controlling interests
and non-gold producing
companies (1) - - - - 1
Associates and equity
accounted joint ventures'
share of production costs
(2) - - - - -
Total production costs
adjusted for non-controlling
interests and non-gold
producing companies 50 60 (2) 321 2
Gold produced - oz (000) (3) 62 58 - 339 -
Total cash costs per unit -
$/oz (4) 809 915 - 767 -
Total production costs per
unit - $/oz (4) 809 1,035 - 946 -
Adjusting for non-controlling interest of items included in calculation, to
disclose the attributable portions only. Other consists of heap leach inventory
of Cripple Creek & Victor.
Attributable costs and related expenses of associates and equity accounted
joint ventures are included in the calculation of total cash costs per ounce
and total production costs per ounce.
Attributable portion.
In addition to the operational performances of the mines, all-in sustaining
cost per ounce, total cash costs per ounce and total production costs per ounce
are affected by fluctuations in the currency exchange rate. AngloGold Ashanti
reports all-in sustaining cost per ounce calculated to the nearest US dollar
amount and gold sold in ounces. 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.
Corporate includes non-gold producing subsidiaries.
Total cash costs per ounce calculation includesheap-leach inventory change.
As from 1 January 2013, Tau Tona and Savuka were mined as one operation.
For the three months ended 31 December 2013
Operations in DRC, Ghana, Guinea, Mali, Namibia and Tanzania
(in $ millions, except as otherwise noted)
DRC GHANA GUINEA MALI
Kibali Iduapriem Obuasi Siguiri Morila Sadiola Yatela
All-in sustaining costs
Cost of sales per
financial statements - 72 94 76 - - -
Amortisation of
tangible and
intangible assets - (8) (2) (8) - - -
Adjusted for
decomissioning
amortisation - - - 1 - - -
Inventory writedown
to net realisable
value and other
stockpile
adjustments - - - - - 17 -
Corporate
administration and
marketing related to
current operations - - - - - - -
Associates and
equity accounted
joint ventures'
share of costs(2) 19 - - - 11 41 18
Sustaining
exploration and
study costs - - - 5 - 1 -
Total sustaining
capital expenditure - 6 37 10 6 (1) -
All-in sustaining costs 19 70 129 84 17 58 18
Adjusted for
non-controlling
interests(1) - - - (13) - - -
All-in sustaining costs
adjusted for
non-controlling
interests 19 70 129 71 17 58 18
Gold sold - oz (000)(3) 40 62 62 64 12 24 8
All-in sustaining cost
(excluding stockpile
impairments) per unit -
$/oz(4) 469 1,153 2,069 1,116 1,434 1,639 2,226
Total cash costs
Total cash costs per
financial statements - 65 86 75 - - -
Adjusted for
non-controlling
interests, non-gold
producing companies
and other (1) - - - (11) - - -
Associates and
equity accounted
joint ventures'
share of total cash
costs (2) 19 - - - 10 36 15
Total cash costs
adjusted for
non-controlling
interests and non-gold
producing companies 19 65 86 64 10 36 15
Retrenchment costs - 5 1 - - - -
Rehabilitation and
other non-cash costs - 6 6 3 - - -
Amortisation of
tangible assets - 7 2 8 - - -
Amortisation of
intangible assets - - - - - - -
Adjusted for
non-controlling
interests and
non-gold producing
companies (1) - - - (2) - - -
Associates and equity
accounted joint
ventures' share of
production costs(2) 9 - - - 2 4 3
Total production costs
adjusted for
non-controlling
interests and non-gold
producing companies 28 83 95 73 12 40 18
Gold produced - oz
(000) (3) 40 67 63 75 12 24 8
Total cash costs per
unit - $/oz (4) 471 966 1,354 844 853 1,506 1,923
Total production costs
per unit - $/oz (4) 694 1,240 1,492 967 982 1,673 2,255
NAMIBIA TANZANIA Continental TOTAL
Africa CONTINENTAL
other AFRICA
Navachab Geita
All-in sustaining costs
Cost of sales per financial
statements 8 98 5 353
Amortisation of tangible and
intangible assets - (33) - (51)
Adjusted for decomissioning
amortisation - - 1 2
Inventory writedown to net
realisable value and other
stockpile adjustments - 23 - 40
Corporate administration and
marketing related to current
operations - - (2) (2)
Associates and equity accounted
joint ventures' share of costs
(2) - - 1 90
Sustaining exploration and study
costs - 1 - 7
Total sustaining capital
expenditure 1 50 - 109
All-in sustaining costs 9 139 5 548
Adjusted for non-controlling
interests(1) - - 1 (12)
All-in sustaining costs adjusted
for non-controlling interests 9 139 6 536
Gold sold - oz (000)(3) 17 147 - 437
All-in sustaining cost (excluding
stockpile impairments) per unit - $
/oz(4) 526 784 - 1,129
Total cash costs
Total cash costs per financial
statements 9 83 - 318
Adjusted for non-controlling
interests, non-gold producing
companies and other (1) - - - (11)
Associates and equity accounted
joint ventures' share of total
cash costs (2) - - (1) 79
Total cash costs adjusted for
non-controlling interests and
non-gold producing companies 9 83 (1) 386
Retrenchment costs - - 3 9
Rehabilitation and other non-cash
costs (1) (1) 1 14
Amortisation of tangible assets - 33 - 50
Amortisation of intangible assets - - 1 1
Adjusted for non-controlling
interests and non-gold producing
companies (1) - - - (2)
Associates and equity accounted
joint ventures' share of
production costs(2) - - (1) 17
Total production costs adjusted for
non-controlling interests and
non-gold producing companies 8 115 3 476
Gold produced - oz (000) (3) 18 154 - 460
Total cash costs per unit - $/oz
(4) 524 543 - 839
Total production costs per unit - $
/oz (4) 485 755 - 1,034
For the three months ended 31 December 2013
Operations in Australia, United States of America, Argentina and Brazil
(in $ millions, except as otherwise noted)
UNITED
AUSTRALIA STATES
OF
TOTAL AMERICA
AUSTRALIA
Sunrise Australia Cripple
Dam Tropicana other Creek &
Victor
All-in sustaining costs
Cost of sales per financial
statements 97 64 1 162 40
Amortisation of tangible and
intangible assets (27) (27) (2) (56) -
Adjusted for decomissioning
amortisation - - - - -
Inventory writedown to net
realisable value and other
stockpile adjustments - - - - -
Corporate administration and
marketing related to current
operations - - - - 3
Associates and equity
accounted joint ventures'
share of costs(2) - - - - -
Sustaining exploration and
study costs - - 2 2 1
Total sustaining capital
expenditure 6 - 1 7 8
All-in sustaining costs 76 37 2 115 52
Adjusted for non-controlling
interests(1) - - - - -
All-in sustaining costs
adjusted for non-controlling
interests 76 37 2 115 52
Gold sold - oz (000)(3) 94 58 - 152 48
All-in sustaining cost
(excluding stockpile
impairments) per unit - $/oz(4) 804 640 - 763 1,076
Total cash costs
Total cash costs per financial
statements 70 38 - 108 52
Adjusted for non-controlling
interests, non-gold producing
companies and other (1) - - - - (13)
Associates and equity
accounted joint ventures'
share of total cash costs (2) - - - - -
Total cash costs adjusted for
non-controlling interests and
non-gold producing companies 70 38 - 108 39
Retrenchment costs - - 1 1 -
Rehabilitation and other
non-cash costs - 2 - 2 (19)
Amortisation of tangible
assets 27 27 1 55 -
Amortisation of intangible
assets - - - - -
Adjusted for
non-controlling interests
and non-gold producing
companies (1) - - - - 20
Associates and equity
accounted joint ventures'
share of production costs
(2) - - - - -
Total production costs adjusted
for non-controlling interests
and non-gold producing
companies 97 67 2 166 40
Gold produced - oz (000) (3) 102 66 - 169 47
Total cash costs per unit - $/
oz (4) 685 569 - 640 825(6)
Total production costs per unit
- $/oz (4) 945 1,016 - 985 846
ARGENTINA BRAZIL
Americas TOTAL
Cerro AngloGold Serra other AMERICAS
Vanguardia Ashanti Grande
Mineracao
All-in sustaining costs
Cost of sales per financial
statements 46 91 32 1 210
Amortisation of tangible and
intangible assets (7) (22) (10) (1) (40)
Adjusted for decomissioning
amortisation - - - - -
Inventory writedown to net
realisable value and other
stockpile adjustments - - - - -
Corporate administration and
marketing related to current
operations - 2 - - 5
Associates and equity
accounted joint ventures'
share of costs(2) - - - - -
Sustaining exploration and
study costs - 4 2 - 7
Total sustaining capital
expenditure
11 37 9 (11) 54
All-in sustaining costs 50 112 33 (11) 236
Adjusted for non-controlling
interests(1) (4) - - - (4)
All-in sustaining costs
adjusted for non-controlling
interests 46 112 33 (11) 232
Gold sold - oz (000)(3) 54 126 34 - 262
All-in sustaining cost
(excluding stockpile
impairments) per unit - $/oz(4) 852 891 956 - 887
Total cash costs
Total cash costs per financial
statements 44 62 24 1 183
Adjusted for non-controlling
interests, non-gold producing
companies and other (1) (3) - - (1) (17)
Associates and equity
accounted joint ventures'
share of total cash costs (2) - - - - -
Total cash costs adjusted for
non-controlling interests and
non-gold producing companies 41 62 24 - 166
Retrenchment costs - - - 1 1
Rehabilitation and other
non-cash costs - 2 (3) 1 (19)
Amortisation of tangible
assets 7 21 10 - 38
Amortisation of intangible
assets - 1 - 1 2
Adjusted for
non-controlling interests
and non-gold producing
companies (1) (1) - - (1) 18
Associates and equity
accounted joint ventures'
share of production costs
(2) - - - - -
Total production costs adjusted
for non-controlling interests
and non-gold producing
companies 47 86 31 2 206
Gold produced - oz (000) (3) 61 120 34 - 262
Total cash costs per unit - $/
oz (4) 672 518 712 - 634
Total production costs per unit
- $/oz (4) 784 720 928 - 787
For the three months ended 31 March 2013
Operations in South Africa
(in $ millions, except as otherwise noted)
Great Kopanang Moab Mponeng Savuka
Noligwa Khotsong (7)
All-in sustaining costs
Cost of sales per financial
statements 28 54 60 87 -
Amortisation of tangible and
intangible assets (2) (11) (18) (22) -
Adjusted for decomissioning
amortisation - - - - -
Inventory writedown to net
realisable value and other
stockpile adjustments - - - - -
Corporate administration and
marketing related to current
operations - - - - -
Associates and equity accounted
joint ventures' share of costs(2) - - - - -
Sustaining exploration and study
costs - - - - -
Total sustaining capital
expenditure 3 12 21 20 -
All-in sustaining costs 29 55 63 85 -
Adjusted for non-controlling
interests(1) - - - - -
All-in sustaining costs adjusted for
non-controlling interests 29 55 63 85 -
Gold sold - oz (000)(3) 23 45 40 91 -
All-in sustaining cost (excluding
stockpile impairments) per unit - $/
oz(4) 1,243 1,228 1,564 929 -
Total cash costs
Total cash costs per financial
statements 26 44 45 66 -
Adjusted for non-controlling
interests, non-gold producing
companies and other (1) - - - - -
Associates and equity accounted
joint ventures' share of total
cash costs (2) - - - - -
Total cash costs adjusted for
non-controlling interests and
non-gold producing companies 26 44 45 66 -
Retrenchment costs 1 - - - -
Rehabilitation and other non-cash
costs - 1 1 1 -
Amortisation of tangible assets 2 11 18 22 -
Amortisation of intangible assets - - - - -
Adjusted for non-controlling
interests and non-gold producing
companies (1) - - - - -
Associates and equity accounted
joint ventures' share of
production costs(2) - - - - -
Total production costs adjusted for
non-controlling interests and
non-gold producing companies 29 56 64 89 -
Gold produced - oz (000) (3) 24 47 43 93 -
Total cash costs per unit - $/oz (4) 1,108 932 1,052 707 -
Total production costs per unit - $/
oz (4) 1,220 1,193 1,496 950 -
South Total South
TauTona Surface Africa Africa Corporate
(7) operations (Operations) (5)
other
All-in sustaining costs
Cost of sales per financial
statements 71 54 - 354 4
Amortisation of tangible
and intangible assets (11) (5) (69) -
Adjusted for
decomissioning
amortisation - - - - 1
Inventory writedown to
net realisable value and
other stockpile
adjustments - - - - -
Corporate administration
and marketing related to
current operations - - 1 1 55
Associates and equity
accounted joint ventures'
share of costs(2) - - - - 2
Sustaining exploration
and study costs - - - - -
Total sustaining capital
expenditure 14 - (1) 69 3
All-in sustaining costs 74 49 - 355 65
Adjusted for
non-controlling interests
(1) - - - - -
All-in sustaining costs
adjusted for non-controlling
interests 74 49 - 355 65
Gold sold - oz (000)(3) 56 60 - 314
All-in sustaining cost
(excluding stockpile
impairments) per unit - $/oz
(4) 1,319 832 - 1,129
Total cash costs
Total cash costs per
financial statements 61 50 1 293 3
Adjusted for
non-controlling
interests, non-gold
producing companies and
other (1) - - - - (3)
Associates and equity
accounted joint ventures'
share of total cash costs
(2) - - - - -
Total cash costs adjusted
for non-controlling
interests and non-gold
producing companies 61 50 1 293 -
Retrenchment costs - 1 - 2 1
Rehabilitation and other
non-cash costs 1 - - 4 (1)
Amortisation of tangible
assets 11 5 - 69 -
Amortisation of intangible
assets - - - - 1
Adjusted for
non-controlling interests
and non-gold producing
companies (1) - - - - (1)
Associates and equity
accounted joint ventures'
share of production costs
(2) - - - - (1)
Total production costs
adjusted for non-controlling
interests and non-gold
producing companies 73 56 1 368 (1)
Gold produced - oz (000) (3) 57 63 - 327 -
Total cash costs per unit -
$/oz (4) 1,070 805 - 896 -
Total production costs per
unit - $/oz (4) 1,280 892 - 1,123 -
Adjusting for non-controlling interest of items included in calculation, to
disclose the attributable portions only. Other consists of heap leach inventory
of Cripple Creek & Victor.
Attributable costs and related expenses of associates and equity accounted
joint ventures are included in the calculation of total cash costs per ounce
and total production costs per ounce.
Attributable portion.
In addition to the operational performances of the mines, all-in sustaining
cost per ounce, total cash costs per ounce and total production costs per ounce
are affected by fluctuations in the currency exchange rate. AngloGold Ashanti
reports all-in sustaining cost per ounce calculated to the nearest US dollar
amount and gold sold in ounces. 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.
Corporate includes non-gold producing subsidiaries.
Total cash costs per ounce calculation includesheap-leach inventory change.
As from 1 January 2013, Tau Tona and Savuka were mined as one operation.
For the three months ended 31 March 2013
Operations in DRC, Ghana, Guinea, Mali, Namibia and Tanzania
(in $ millions, except as otherwise noted)
DRC GHANA GUINEA MALI
Kibali Iduapriem Obuasi Siguiri Morila Sadiola Yatela
All-in sustaining costs
Cost of sales per
financial statements - 55 123 91 - - -
Amortisation of
tangible and
intangible assets - (7) (23) (6) - - -
Adjusted for
decomissioning
amortisation - - - 1 - - -
Inventory writedown
to net realisable
value and other
stockpile
adjustments - - - - - - -
Corporate
administration and
marketing related to
current operations 2 - - - - - -
Associates and
equity accounted
joint ventures'
share of costs(2) - - - - 12 19 13
Sustaining
exploration and
study costs - - 2 5 - 1 -
Total sustaining
capital expenditure - 7 47 8 1 3 -
All-in sustaining costs 2 55 149 99 13 23 13
Adjusted for
non-controlling
interests(1) - - - (15) - - -
All-in sustaining costs
adjusted for
non-controlling
interests 2 55 149 84 13 23 13
Gold sold - oz (000)(3) - 43 57 72 15 18 10
All-in sustaining cost
(excluding stockpile
impairments) per unit -
$/oz(4) - 1,286 2,608 1,172 883 1,317 1,350
Total cash costs
Total cash costs per
financial statements - 43 86 73 - - -
Adjusted for
non-controlling
interests, non-gold
producing companies
and other (1) - - - (11) - - -
Associates and
equity accounted
joint ventures'
share of total cash
costs (2) - - - - 12 21 13
Total cash costs
adjusted for
non-controlling
interests and non-gold
producing companies - 43 86 62 12 21 13
Retrenchment costs - - 2 - - - -
Rehabilitation and
other non-cash costs - 1 2 1 - - -
Amortisation of
tangible assets - 7 23 6 - - -
Amortisation of
intangible assets - - - - - - -
Adjusted for
non-controlling
interests and
non-gold producing
companies (1) - - - (1) - - -
Associates and equity
accounted joint
ventures' share of
production costs(2) - - - - 1 - 1
Total production costs
adjusted for
non-controlling
interests and non-gold
producing companies - 51 113 68 13 21 14
Gold produced - oz
(000) (3) - 41 49 62 15 19 10
Total cash costs per
unit - $/oz (4) - 1,052 1,742 998 772 1,103 1,316
Total production costs
per unit - $/oz (4) - 1,235 2,290 1,087 841 1,124 1,377
NAMIBIA TANZANIA Continental TOTAL
Africa CONTINENTAL
other AFRICA
Navachab Geita
All-in sustaining costs
Cost of sales per financial
statements 17 71 4 361
Amortisation of tangible and
intangible assets (4) (29) (2) (71)
Adjusted for decomissioning
amortisation - - - 1
Inventory writedown to net
realisable value and other
stockpile adjustments - - - -
Corporate administration and
marketing related to current
operations - - 2 4
Associates and equity accounted
joint ventures' share of costs
(2) - - 1 45
Sustaining exploration and study
costs - 2 - 10
Total sustaining capital
expenditure 1 31 - 98
All-in sustaining costs 14 75 5 448
Adjusted for non-controlling
interests(1) - - - (15)
All-in sustaining costs adjusted
for non-controlling interests 14 75 5 433
Gold sold - oz (000)(3) 14 86 - 315
All-in sustaining cost (excluding
stockpile impairments) per unit - $
/oz(4) 1,005 878 - 1,376
Total cash costs
Total cash costs per financial
statements 12 26 - 240
Adjusted for non-controlling
interests, non-gold producing
companies and other (1) - - - (11)
Associates and equity accounted
joint ventures' share of total
cash costs (2) - - - 46
Total cash costs adjusted for
non-controlling interests and
non-gold producing companies 12 26 - 275
Retrenchment costs - - - 2
Rehabilitation and other non-cash
costs - 1 - 5
Amortisation of tangible assets 4 29 1 70
Amortisation of intangible assets - - 1 1
Adjusted for non-controlling
interests and non-gold producing
companies (1) - - - (1)
Associates and equity accounted
joint ventures' share of
production costs(2) - - - 2
Total production costs adjusted for
non-controlling interests and
non-gold producing companies 16 56 2 354
Gold produced - oz (000) (3) 14 66 - 276
Total cash costs per unit - $/oz
(4) 896 389 - 994
Total production costs per unit - $
/oz (4) 1,221 839 - 1,278
For the three months ended 31 March 2013
Operations in Australia, United States of America, Argentina and Brazil
(in $ millions, except as otherwise noted)
UNITED
AUSTRALIA STATES
OF
TOTAL AMERICA
AUSTRALIA
Sunrise Australia Cripple
Dam Tropicana other Creek &
Victor
All-in sustaining costs
Cost of sales per financial
statements 87 - 4 91 44
Amortisation of tangible and
intangible assets (13) - (1) (14) (11)
Adjusted for decomissioning
amortisation - - - - -
Inventory writedown to net
realisable value and other
stockpile adjustments - - - - -
Corporate administration and
marketing related to current
operations - - - - 4
Associates and equity
accounted joint ventures'
share of costs(2) - - - - -
Sustaining exploration and
study costs 7 1 3 11 1
Total sustaining capital
expenditure 19 - - 19 1
All-in sustaining costs 100 1 6 107 39
Adjusted for non-controlling
interests(1) - - - - -
All-in sustaining costs
adjusted for non-controlling
interests 100 1 6 107 39
Gold sold - oz (000)(3) 58 - - 58 53
All-in sustaining cost
(excluding stockpile
impairments) per unit - $/oz(4) 1,727 - - 1,857 743
Total cash costs
Total cash costs per financial
statements 76 - 3 79 58
Adjusted for non-controlling
interests, non-gold producing
companies and other (1) - - - - (23)
Associates and equity
accounted joint ventures'
share of total cash costs (2) - - - - -
Total cash costs adjusted for
non-controlling interests and
non-gold producing companies 76 - 3 79 35
Retrenchment costs - - - - -
Rehabilitation and other
non-cash costs - - - - 1
Amortisation of tangible
assets 13 - 1 14 11
Amortisation of intangible
assets - - - - -
Adjusted for
non-controlling interests
and non-gold producing
companies (1) - - - - (3)
Associates and equity
accounted joint ventures'
share of production costs
(2) - - - - -
Total production costs adjusted
for non-controlling interests
and non-gold producing
companies 89 - 4 93 44
Gold produced - oz (000) (3) 61 - - 61 55
Total cash costs per unit - $/
oz (4) 1,247 - - 1,302 643(6)
Total production costs per unit
- $/oz (4) 1,460 - - 1,525 803
ARGENTINA BRAZIL
Americas TOTAL
Cerro AngloGold Serra other AMERICAS
Vanguardia Ashanti Grande
Mineracao
All-in sustaining costs
Cost of sales per financial
statements 45 97 32 1 219
Amortisation of tangible and
intangible assets (10) (30) (9) (1) (61)
Adjusted for decomissioning
amortisation - - - - -
Inventory writedown to net
realisable value and other
stockpile adjustments - - - - -
Corporate administration and
marketing related to current
operations - 1 - - 5
Associates and equity
accounted joint ventures'
share of costs(2) - - - - -
Sustaining exploration and
study costs 3 4 2 - 10
Total sustaining capital
expenditure 18 21 7 7 54
All-in sustaining costs 56 409 32 7 227
Adjusted for non-controlling
interests(1) (4) - - - (4)
All-in sustaining costs
adjusted for non-controlling
interests 52 409 32 7 223
Gold sold - oz (000)(3) 54 99 34 - 241
All-in sustaining cost
(excluding stockpile
impairments) per unit - $/oz(4) 955 933 952 - 924
Total cash costs
Total cash costs per financial
statements 35 63 25 1 182
Adjusted for non-controlling
interests, non-gold producing
companies and other (1) (3) - - 1 (25)
Associates and equity
accounted joint ventures'
share of total cash costs (2) - - - - -
Total cash costs adjusted for
non-controlling interests and
non-gold producing companies 32 63 25 2 157
Retrenchment costs - 1 - - 1
Rehabilitation and other
non-cash costs 1 - - 1 3
Amortisation of tangible
assets 10 30 9 - 60
Amortisation of intangible
assets - - - - -
Adjusted for
non-controlling interests
and non-gold producing
companies (1) (1) - - - (4)
Associates and equity
accounted joint ventures'
share of production costs
(2) - - - - -
Total production costs adjusted
for non-controlling interests
and non-gold producing
companies 42 94 34 3 217
Gold produced - oz (000) (3) 55 92 32 - 234
Total cash costs per unit - $/
oz (4) 583 689 789 - 668
Total production costs per unit
- $/oz (4) 783 1,028 1,082 - 926
For the year ended 31 December 2013
Operations in South Africa
(in $ millions, except as otherwise noted)
Great Kopanang Moab Mponeng Savuka
Noligwa Khotsong (7)
All-in sustaining costs
Cost of sales per financial
statements 103 215 240 347 -
Amortisation of tangible and
intangible assets (8) (43) (60) (82) -
Adjusted for decomissioning
amortisation (1) 1 1 - -
Inventory writedown to net
realisable value and other
stockpile adjustments - - - - -
Corporate administration and
marketing related to current
operations - - - - -
Associates and equity accounted
joint ventures' share of costs(2) - - - - -
Sustaining exploration and study
costs - - - - -
Total sustaining capital
expenditure 14 50 78 95 -
All-in sustaining costs 108 223 259 360 -
Adjusted for non-controlling
interests(1) - - - - -
All-in sustaining costs adjusted for
non-controlling interests 108 223 259 360 -
Gold sold - oz (000)(3) 83 178 212 354 -
All-in sustaining cost (excluding
stockpile impairments) per unit - $/
oz(4) 1,305 1,255 1,223 1,016 -
Total cash costs
Total cash costs per financial
statements 91 163 169 255 -
Adjusted for non-controlling
interests, non-gold producing
companies and other (1) - - - - -
Associates and equity accounted
joint ventures' share of total
cash costs (2) - - - - -
Total cash costs adjusted for
non-controlling interests and
non-gold producing companies 91 163 169 255 -
Retrenchment costs 3 5 6 7 -
Rehabilitation and other non-cash
costs 1 4 6 3 -
Amortisation of tangible assets 7 41 57 77 -
Amortisation of intangible assets 1 3 3 5 -
Adjusted for non-controlling
interests and non-gold producing
companies (1) - - - - -
Associates and equity accounted
joint ventures' share of
production costs(2) - - - - -
Total production costs adjusted for
non-controlling interests and
non-gold producing companies 103 216 241 347 -
Gold produced - oz (000) (3) 83 178 212 354 -
Total cash costs per unit - $/oz (4) 1,100 918 797 719 -
Total production costs per unit - $/
oz (4) 1,252 1,210 1,138 978 -
South Total South
TauTona Surface Africa Africa Corporate
(7) operations (Operations) (5)
other
All-in sustaining costs
Cost of sales per financial
statements 262 226 - 1,393 1
Amortisation of tangible
and intangible assets (51) (9) (253) (9)
Adjusted for
decomissioning
amortisation - - - 1 (1)
Inventory writedown to
net realisable value and
other stockpile
adjustments - - 1 1 (1)
Corporate administration
and marketing related to
current operations - - 5 5 168
Associates and equity
accounted joint ventures'
share of costs(2) - - - - 2
Sustaining exploration
and study costs - - - - (1)
Total sustaining capital
expenditure 59 16 - 312 9
All-in sustaining costs 270 233 6 1,459 168
Adjusted for
non-controlling interests
(1) - - - - -
All-in sustaining costs
adjusted for non-controlling
interests 270 233 6 1,459 168
Gold sold - oz (000)(3) 235 240 - 1,302
All-in sustaining cost
(excluding stockpile
impairments) per unit - $/oz
(4) 1,149 969 - 1,120
Total cash costs
Total cash costs per
financial statements 216 213 - 1,107 (7)
Adjusted for
non-controlling
interests, non-gold
producing companies and
other (1) - - - - 6
Associates and equity
accounted joint ventures'
share of total cash costs
(2) - - - - -
Total cash costs adjusted
for non-controlling
interests and non-gold
producing companies 216 213 - 1,107 (1)
Retrenchment costs 6 - - 27 -
Rehabilitation and other
non-cash costs (10) 3 - 7 1
Amortisation of tangible
assets 47 8 - 237 6
Amortisation of intangible
assets 3 - - 15 2
Adjusted for
non-controlling interests
and non-gold producing
companies (1) - - - - (3)
Associates and equity
accounted joint ventures'
share of production costs
(2) - - - - 1
Total production costs
adjusted for non-controlling
interests and non-gold
producing companies 262 224 - 1,393 6
Gold produced - oz (000) (3) 235 240 - 1,302 -
Total cash costs per unit -
$/oz (4) 920 883 - 850 -
Total production costs per
unit - $/oz (4) 1,117 933 - 1,070 -
Adjusting for non-controlling interest of items included in calculation, to
disclose the attributable portions only. Other consists of heap leach inventory
of Cripple Creek & Victor.
Attributable costs and related expenses of associates and equity accounted
joint ventures are included in the calculation of total cash costs per ounce
and total production costs per ounce.
Attributable portion.
In addition to the operational performances of the mines, all-in sustaining
cost per ounce, total cash costs per ounce and total production costs per ounce
are affected by fluctuations in the currency exchange rate. AngloGold Ashanti
reports all-in sustaining cost per ounce calculated to the nearest US dollar
amount and gold sold in ounces. 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.
Corporate includes non-gold producing subsidiaries.
Total cash costs per ounce calculation includesheap-leach inventory change.
As from 1 January 2013, Tau Tona and Savuka were mined as one operation.
For the year ended 31 December 2013
Operations in DRC, Ghana, Guinea, Mali, Namibia and Tanzania
(in $ millions, except as otherwise noted)
DRC GHANA GUINEA MALI
Kibali Iduapriem Obuasi Siguiri Morila Sadiola Yatela
All-in sustaining costs
Cost of sales per
financial statements - 226 425 324 - - -
Amortisation of
tangible and
intangible assets - (30) (50) (27) - - -
Adjusted for
decomissioning
amortisation - 1 1 3 - - -
Inventory writedown
to net realisable
value and other
stockpile
adjustments - 83 4 - - 16 -
Corporate
administration and
marketing related to
current operations - - 1 - - - -
Associates and
equity accounted
joint ventures'
share of costs(2) 21 - - - 47 118 46
Sustaining
exploration and
study costs - 1 6 18 - 2 -
Total sustaining
capital expenditure - 22 154 27 13 11 -
All-in sustaining costs 21 303 541 345 60 147 46
Adjusted for
non-controlling
interests(1) - - - (52) - - -
All-in sustaining costs
adjusted for
non-controlling
interests 21 303 541 293 60 147 46
Gold sold - oz (000)(3) 40 215 242 272 57 86 28
All-in sustaining cost
(excluding stockpile
impairments) per unit -
$/oz(4) 529 1,025 2,214 1,085 1,051 1,510 1,653
Total cash costs
Total cash costs per
financial statements - 190 336 290 - - -
Adjusted for
non-controlling
interests, non-gold
producing companies
and other (1) - - - (43) - - -
Associates and
equity accounted
joint ventures'
share of total cash
costs (2) 19 - - - 44 114 42
Total cash costs
adjusted for
non-controlling
interests and non-gold
producing companies 19 190 336 247 44 114 42
Retrenchment costs - 5 30 - - - -
Rehabilitation and
other non-cash costs - 7 4 4 - - -
Amortisation of
tangible assets - 30 50 27 - - -
Amortisation of
intangible assets - - - - - - -
Adjusted for
non-controlling
interests and
non-gold producing
companies (1) - - - (5) - - -
Associates and equity
accounted joint
ventures' share of
production costs(2) 9 - - - 4 5 4
Total production costs
adjusted for
non-controlling
interests and non-gold
producing companies 28 231 420 273 48 119 46
Gold produced - oz
(000) (3) 40 221 239 268 57 86 27
Total cash costs per
unit - $/oz (4) 471 861 1,406 918 773 1,334 1,530
Total production costs
per unit - $/oz (4) 701 1,047 1,758 1,018 838 1,389 1,702
NAMIBIA TANZANIA Continental TOTAL
Africa CONTINENTAL
other AFRICA
Navachab Geita
All-in sustaining costs
Cost of sales per financial
statements 49 346 23 1,393
Amortisation of tangible and
intangible assets (6) (120) (6) (239)
Adjusted for decomissioning
amortisation - 1 - 6
Inventory writedown to net
realisable value and other
stockpile adjustments 24 89 - 216
Corporate administration and
marketing related to current
operations - - 2 3
Associates and equity accounted
joint ventures' share of costs
(2) - - - 232
Sustaining exploration and study
costs 1 11 - 39
Total sustaining capital
expenditure 5 146 1 379
All-in sustaining costs 73 473 20 2,029
Adjusted for non-controlling
interests(1) - - (1) (53)
All-in sustaining costs adjusted
for non-controlling interests 73 473 19 1,976
Gold sold - oz (000)(3) 63 461 - 1,462
All-in sustaining cost (excluding
stockpile impairments) per unit - $
/oz(4) 781 833 - 1,202
Total cash costs
Total cash costs per financial
statements 44 237 (3) 1,094
Adjusted for non-controlling
interests, non-gold producing
companies and other (1) - - - (43)
Associates and equity accounted
joint ventures' share of total
cash costs (2) - - - 219
Total cash costs adjusted for
non-controlling interests and
non-gold producing companies 44 237 (3) 1,270
Retrenchment costs - - 3 38
Rehabilitation and other non-cash
costs (1) - 7 21
Amortisation of tangible assets 6 105 18 236
Amortisation of intangible assets - - 4 4
Adjusted for non-controlling
interests and non-gold producing
companies (1) - - - (5)
Associates and equity accounted
joint ventures' share of
production costs(2) - - - 22
Total production costs adjusted for
non-controlling interests and
non-gold producing companies 49 342 29 1,586
Gold produced - oz (000) (3) 63 459 - 1,460
Total cash costs per unit - $/oz
(4) 691 515 - 869
Total production costs per unit - $
/oz (4) 771 778 - 1,086
For the year ended 31 December 2013
Operations in Australia, United States of America, Argentina and Brazil
(in $ millions, except as otherwise noted)
UNITED
AUSTRALIA STATES
OF
TOTAL AMERICA
AUSTRALIA
Sunrise Australia Cripple
Dam Tropicana other Creek &
Victor
All-in sustaining costs
Cost of sales per financial
statements 366 64 19 449 201
Amortisation of tangible and
intangible assets (67) (27) (3) (97) (21)
Adjusted for decomissioning
amortisation - - - - -
Inventory writedown to net
realisable value and other
stockpile adjustments - - - - -
Corporate administration and
marketing related to current
operations - - 1 1 15
Associates and equity
accounted joint ventures'
share of costs(2) - - - - -
Sustaining exploration and
study costs 12 3 8 23 4
Total sustaining capital
expenditure 39 25 5 69 15
All-in sustaining costs 350 65 30 445 214
Adjusted for non-controlling
interests(1) - - - - -
All-in sustaining costs
adjusted for non-controlling
interests 350 65 30 445 214
Gold sold - oz (000)(3) 265 58 - 323 231
All-in sustaining cost
(excluding stockpile
impairments) per unit - $/oz(4) 1,321 1,113 - 1,376 927
Total cash costs
Total cash costs per financial
statements 306 38 14 358 230
Adjusted for non-controlling
interests, non-gold producing
companies and other (1) - - - - (61)
Associates and equity
accounted joint ventures'
share of total cash costs (2) - - - - -
Total cash costs adjusted for
non-controlling interests and
non-gold producing companies 306 38 14 358 169
Retrenchment costs - - 1 1 -
Rehabilitation and other
non-cash costs (4) 2 1 (1) (15)
Amortisation of tangible
assets 67 27 4 98 21
Amortisation of intangible
assets - - - - -
Adjusted for
non-controlling interests
and non-gold producing
companies (1) - - - - 25
Associates and equity
accounted joint ventures'
share of production costs
(2) - - - - -
Total production costs adjusted
for non-controlling interests
and non-gold producing
companies 369 67 20 456 199
Gold produced - oz (000) (3) 276 66 - 342 231
Total cash costs per unit - $/
oz (4) 1,110 568 - 1,047 732(6)
Total production costs per unit
- $/oz (4) 1,341 1,018 - 1,333 864
ARGENTINA BRAZIL
Americas TOTAL
Cerro AngloGold Serra other AMERICAS
Vanguardia Ashanti Grande
Mineracao
All-in sustaining costs
Cost of sales per financial
statements 199 374 133 3 910
Amortisation of tangible and
intangible assets (35) (103) (41) (1) (201)
Adjusted for decomissioning
amortisation - - - - -
Inventory writedown to net
realisable value and other
stockpile adjustments - - - - -
Corporate administration and
marketing related to current
operations - 6 - 1 22
Associates and equity
accounted joint ventures'
share of costs(2) - - - - -
Sustaining exploration and
study costs 7 14 8 - 33
Total sustaining capital
expenditure 61 118 36 - 230
All-in sustaining costs 232 409 136 3 994
Adjusted for non-controlling
interests(1) (18) - - - (18)
All-in sustaining costs
adjusted for non-controlling
interests 214 409 136 3 976
Gold sold - oz (000)(3) 236 399 141 - 1,007
All-in sustaining cost
(excluding stockpile
impairments) per unit - $/oz(4) 912 1,023 970 - 970
Total cash costs
Total cash costs per financial
statements 162 253 99 1 745
Adjusted for non-controlling
interests, non-gold producing
companies and other (1) (12) - - - (73)
Associates and equity
accounted joint ventures'
share of total cash costs (2) - - - - -
Total cash costs adjusted for
non-controlling interests and
non-gold producing companies 150 253 99 1 672
Retrenchment costs 1 2 - - 3
Rehabilitation and other
non-cash costs 1 7 (4) 1 (10)
Amortisation of tangible
assets 35 101 40 1 198
Amortisation of intangible
assets - 2 - 1 3
Adjusted for
non-controlling interests
and non-gold producing
companies (1) (3) - - - 22
Associates and equity
accounted joint ventures'
share of production costs
(2) - - - - -
Total production costs adjusted
for non-controlling interests
and non-gold producing
companies 185 364 136 4 888
Gold produced - oz (000) (3) 241 391 138 - 1,001
Total cash costs per unit - $/
oz (4) 622 646 719 - 671
Total production costs per unit
- $/oz (4) 767 931 991 - 886
Administrative information
AngloGold Ashanti Limited
Registration No. 1944/017354/06
Incorporated in the Republic of South Africa
Share codes:
ISIN: ZAE000043485
JSE: ANG
LSE: (Shares) AGD
LES : (Dis) AGD
NYSE: AU
ASX: AGG
GhSE: (Shares) AGA
GhSE: (GhDS) AAD
JSE Sponsor: UBS (South Africa) (Pty) Ltd
Auditors: Ernst & Young Inc.
Offices
Registered and Corporate
76 Jeppe Street
Newtown 2001
(PO Box 62117, Marshalltown 2107)
South Africa
Telephone: +27 11 637 6000
Fax: +27 11 637 6624
Australia
Level 13, St Martins Tower
44 St George's Terrace
Perth, WA 6000
(PO Box Z5046, Perth WA 6831)
Australia
Telephone: +61 8 9425 4602
Fax: +61 8 9425 4662
Ghana
Gold House
Patrice Lumumba Road
(PO Box 2665)
Accra
Ghana
Telephone: +233 303 772190
Fax: +233 303 778155
United Kingdom Secretaries
St James's Corporate Services Limited
Suite 31, Second Floor
107 Cheapside
London
EC2V 6DN
Telephone: +44 20 7796 8644
Fax: +44 20 7796 8645
E-mail: jane.kirton@corpserv.co.uk
Directors
Executive
RN Duffy^ (Chief Financial Officer)
S Venkatakrishnan*§ (Chief Executive Officer)
Non-Executive
SM Pityana^ (Chairman)
R Gasant^
DL Hogdson^
NP January-Bardill^
MJ Kirkwood*
Prof LW Nkuhlu^
TT Mboweni^
R J Ruston
* British
^South African
Australian
§ Indian
Officers
Group General Counsel and
Company Secretary: Ms M E Sanz Perez
Investor Relations Contacts
South Africa
Stewart Bailey
Telephone: +27 637 6031
Mobile: +27 81 032 2563
E-mail: sbailey@AngloGoldAshanti.com
Fundisa Mgidi
Telephone: +27 637 6763
Mobile: +27 82 374 8820
E-mail: fmgidi@AngloGoldAshanti.com
United States
Sabrina Brockman
Telephone: +1 212 858 7702
Mobile: +1 646 379 2555
E-mail: sbrockman@AngloGoldAshantiNA.com
General E-mail enquiries
investors@AngloGoldAshanti.com
AngloGold Ashanti website
http://www.AngloGoldAshanti.com
Company secretarial E-mail
Companysecretary@AngloGoldAshanti.com
AngloGold Ashanti posts information that is important to investors on the main
page of its website at www.anglogoldashanti.com and under the "Investors" tab
on the main page. This information is updated regularly. Investors should visit
this website to obtain important information about AngloGold Ashanti.
PUBLISHED BY ANGLOGOLD ASHANTI
Share Registrars
South Africa
Computershare Investor Services (Pty) Limited
Ground Floor, 70 Marshall Street
Johannesburg 2001
(PO Box 61051, Marshalltown 2107)
South Africa
Telephone: (SA only) 0861 100 950
Fax: +27 11 688 5218
Website : queries@computershare.co.za
United Kingdom
Shares
Jersey
Computershare Investor Services (Jersey) Ltd
Queensway House
Hilgrove Street
St Helier
Jersey JE1 1ES
Telephone: +44 870 889 3177
Fax: +44 (0) 870 873 5851
Depositary Interests
Computershare Investor Services PLC
The Pavillions
Bridgwater Road
Bristol BS99 6ZY
England
Telephone: +44 (0) 870 702 0000
Fax: +44 (0) 870 703 6119
Australia
Computershare Investor Services Pty Limited
Level 2, 45 St George's Terrace
Perth, WA 6000
(GPO Box D182 Perth, WA 6840)
Australia
Telephone: +61 8 9323 2000
Telephone: (Australia only) 1300 55 2949
Fax: +61 8 9323 2033
Ghana
NTHC Limited
Martco House
Off Kwame Nkrumah Avenue
PO Box K1A 9563 Airport
Accra
Ghana
Telephone: +233 302 229664
Fax: +233 302 229975
ADR Depositary
BNY Mellon
BNY Shareowner Services
PO Box 358016
Pittsburgh, PA 15252-8016
United States of America
Telephone: +1 800 522 6645 (Toll free in USA)
or +1 201 680 6578 (outside USA)
E-mail: shrrelations@mellon.com
Website: www.bnymellon.com.comshareowner
Global BuyDIRECTSM
BoNY maintains a direct share purchase and dividend reinvestment plan for
AngloGold Ashanti.
Telephone: +1-888-BNY-ADRS
END
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