Anglogold Ld Output up 17%, Costs Improve on Record Safety Result

 
TIDMAGD 
 
AngloGold Ashanti Limited 
 
                                 (Incorporated in the Republic of South Africa) 
 
                                                       Reg. No. 1944/017354/06) 
 
                                  ISIN No. ZAE000043485 - JSE share code: ANG 
 
                                         CUSIP: 035128206 - NYSE share code: AU 
 
11 August 2014 
 
NEWS RELEASE 
 
AngloGold Output up 17%, Costs Improve on Record Safety Result 
 
(JOHANNESBURG) - AngloGold Ashanti reported a 17% increase in production for 
the second quarter compared with the same period a year earlier, as its two new 
mines continued to contribute lower-cost ounces, and a strong safety 
performance helped its South Africa operations improve their contribution. 
 
The overall result for the company showed significant improvement in all key 
areas. In the second quarter, compared with the corresponding period a year 
earlier, production rose 17%, all-in sustaining costs fell 19%, corporate and 
marketing costs were down 65%, exploration and evaluation costs were 58% lower, 
capital expenditure down 44%, all-in costs down 29% and EBITDA up 33%. These 
results helped turn around a cash burn of $488m in the second quarter of 2013, 
to a positive cash flow of $34m, notwithstanding a $132/oz drop in the gold 
price. 
 
"This is another strong result for us, with growth in production and lower 
costs across the board," Chief Executive Officer Srinivasan Venkatakrishnan, 
said. "But it's the continued improvement in safety that we're most proud of, 
and where we intend to do better still." 
 
No fatalities were reported during the quarter for the third time in AngloGold 
Ashanti's history and the first time since 2010. In all, 11 of AngloGold 
Ashanti's operations reported no lost time injuries during the quarter, while 
eight have kept a clean record for the year. The all-injury frequency rate for 
the quarter improved 10% from a year earlier to the best-ever level of 6.79 per 
million hours worked. Records were set on all other key safety metrics. 
 
Production for the three months to June 30 was ahead of guidance, while costs 
were at the lower end of the indicated range. Gold production for the quarter 
was 1.098Moz at a total cash cost of $836/oz, compared with 935,000oz at a 
total cash cost of $898/oz in the corresponding three-month period of 2013. In 
May, AngloGold Ashanti had provided guidance for the second quarter of 1.05Moz 
to 1.08Moz at a total cash cost of $850/oz to $870/oz. 
 
AngloGold Ashanti, which plans to grow production this year for the first time 
in almost a decade, has made significant cuts to overhead costs and also 
realised significant savings in operating expenditure and capital expenditure, 
as it seeks to improve free cash flow and returns. At the same time, AngloGold 
Ashanti has posted a record safety performance. The company is investing in a 
targeted exploration programme and technologies to improve underground 
productivity on its South African mines, which account for roughly 28% of total 
production. 
 
The company reported an adjusted headline loss of $4m. When adjusted for 
extraordinary items, such as redundancy costs at its Obuasi mine in Ghana 
($27m) and closure costs of assets including the Yatela mine in Mali ($27m), 
the normalised adjusted headline earnings was $76m, or 19 cents a share. 
 
The South Africa region posted production at 319,000oz, 4% higher year-on-year, 
at an all-in sustaining cost of $1,064/oz, which was 12% lower than a year 
earlier. The all-in-sustaining cost measurement includes total cash costs, plus 
corporate and exploration costs and capital expenditure required to sustain 
operations. AngloGold Ashanti's international operations posted a 24% rise in 
gold production to 779,000oz at an all-in sustaining cost of $1,033/oz, which 
was 19% lower year-on-year. 
 
The strong operating result helped drive a 140% improvement in cash inflow from 
operating activities to $336m for the quarter compared to the year-earlier 
period, despite a 9% decline in the gold price. 
 
ENDS 
 
Sponsor to AngloGold Ashanti 
 
UBS South Africa (Pty) Limited 
 
Contacts 
 
Media 
 
Chris Nthite                     [phone]    [e-mail] 
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Stewart Bailey                   [phone] / [e-mail] 
                                 [phone] 
 
General inquiries                                  [e-mail] 
 
Investors 
 
Stewart Bailey           +27 81 032     [e-mail] 
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Sabrina Brockman (US &   +1 (212) 858   [e-mail] 
Canada)                  7702 / +1 646 
                         379 2555 
 
Fundisa Mgidi (South     [phone] [e-mail] 
Africa)                  / +27 82 821 
                         5322 
 
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, all-in sustaining 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 consequences of any potential or pending 
litigation or regulatory proceedings or environmental, health, and safety 
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 annual report on Form 20-F for the year 
ended 31 December 2013 which 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. 
 
AngloGold Ashanti Limited 
 
Incorporated in the Republic of South Africa Reg No: 1944/017354/06 
 
ISIN No. ZAE000043485 - JSE share code: ANG CUSIP: 035128206 - NYSE share code: 
AU 
 
Website: www.anglogoldashanti.com 
 
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