TIDMAGD
Report
for the quarter and six months ended 30 June 2014
AngloGold Ashanti posts fatality free quarter and record safety performance on
all key metrics; Longest period with no fatality
Production of 1.098Moz ahead of guidance; Up 17% year-on-year and 4% on prior
quarter
Total cash costs $836/oz, at lower end of market guidance; 7% lower
year-on-year
All-in sustaining costs $1,060/oz, a decrease of 19% year-on-year on overhead
and direct cost improvements
Net Debt reduced further; Net debt to adjusted EBITDA improves to 1.73 times on
continued cash flow generation
Revolving Credit Facilities refinanced with five-year maturities with more
favourable covenants
Normalised Adjusted Headline Earnings $76m on strong production, despite lower
gold price, inflation and winter power tariffs
Newly agreed natural gas pipeline for Australian operations expected to reduce
costs
Full-year production outlook remains intact
Quarter Six months
ended ended ended ended ended
Jun Mar Jun Jun Jun
2014 2014 2013 2014 2013
US dollar / Imperial
Operating review
Gold
Produced - oz (000) 1,098 1,055 935 2,152 1,834
Sold - oz (000) 1,088 1,097 912 2,185 1,840
Price received 1 - $/oz 1,289 1,290 1,421 1,289 1,529
All-in sustaining
cost 2 - $/oz 1,060 993 1,302 1,027 1,288
All-in cost 2 - $/oz 1,192 1,114 1,679 1,153 1,650
Total cash costs 3 - $/oz 836 770 898 804 896
Financial review
Gold income - $m 1,321 1,324 1,242 2,644 2,705
Cost of sales - $m (1,064) (1,012) (1,012) (2,076) (2,040)
Total cash costs 3 - $m 874 778 824 1,651 1,621
Production costs4 - $m 894 806 840 1,700 1,653
Adjusted gross profit 5 - $m 257 312 231 568 665
Gross profit - $m 252 296 330 547 765
(Loss) profit
attributable to equity
shareholders - $m (80) 39 (2,165) (41) (1,926)
- cents/share (20) 10 (559) (10) (497)
Headline (loss) earnings - $m (89) 38 112 (51) 372
- cents/share (22) 9 29 (13) 96
Adjusted headline (loss)
earnings 6 - $m (4) 119 (135) 115 (23)
- cents/share (1) 29 (35) 28 (6)
Net cash flow from
operating activities - $m 336 350 140 687 496
Capital expenditure - $m 311 274 556 585 1,069
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 3 of notes for the quarter and six months
ended 30 June 2014.
. 5. Refer to note B "Non-GAAP disclosure" for the definition.
6. 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, all-in sustaining costs, all-in 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
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.
Operations at a glance
For the quarter ended 30 June 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 319 4 10 1,064 (12) 9
Vaal River Operations 120 9 18 1,042 (24) 2
Great Noligwa 22 5 29 1,206 1 1
Kopanang 40 (15) 38 1,193 (3) (10)
Moab Khotsong 59 40 7 880 (46) 10
West Wits Operations 144 6 13 1,007 (13) 9
Mponeng 88 10 16 927 (16) -
TauTona 56 (1) 8 1,135 (9) 24
Total Surface 55 (11) (8) 1,258 25 26
Operations
First Uranium SA 23 (15) (4) 1,588 43 28
Surface Operations 32 (9) (11) 1,030 11 23
INTERNATIONAL 779 24 2 1,033 (19) 6
OPERATIONS
CONTINENTAL AFRICA 395 15 6 998 (17) (4)
DRC
Kibali - Attr. 45% 6 41 - (20) 738 - 29
Ghana
Iduapriem 47 (8) 4 998 (10) 11
Obuasi 64 10 21 1,420 (40) (7)
Guinea
Siguiri - Attr. 85% 80 29 14 916 (9) (5)
Mali
Morila - Attr. 40% 6 10 (41) - 1,173 37 (27)
Sadiola - Attr. 41% 6 23 - 21 1,078 - (23)
Yatela - Attr. 40% 6 2 (67) (50) 2,836 84 38
Namibia
Navachab 17 31 6 651 (39) (17)
Tanzania
Geita 110 (3) 4 878 15 (16)
Non-controlling
interests, exploration
and other
AUSTRALASIA 155 210 - 1,048 (57) 13
Australia
Sunrise Dam 62 24 (13) 1,527 (21) 39
Tropicana - Attr. 70% 93 - 11 689 - (1)
Exploration and other
AMERICAS 229 (3) (3) 1,077 (4) 23
Argentina
Cerro Vanguardia - 62 - 7 935 (8) 17
Attr. 92.50%
Brazil
AngloGold Ashanti 88 16 (6) 1,043 (25) 30
Mineração
Serra Grande 30 (19) (6) 1,212 22 18
United States of
America
Cripple Creek & Victor 49 (18) (6) 1,221 38 20
Non-controlling
interests, exploration
and other
OTHER
Sub-total 1,098 17 4 1,060 (19) 7
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 June 2014 quarter on June 2013 quarter - increase (decrease).
5 Variance June 2014 quarter on March 2014 quarter - increase (decrease).
6 Equity accounted joint ventures.
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 863 (3) 8 58 (23) (2)
Vaal River Operations 875 (9) 3 21 7 12
Great Noligwa 1,060 7 (6) 2 (4) 1
Kopanang 1,021 17 (5) (1) (14) 14
Moab Khotsong 707 (32) 9 20 25 (3)
West Wits Operations 794 (4) 8 35 (3) 1
Mponeng 714 (7) 1 30 3 5
TauTona 923 - 19 5 (6) (4)
Total Surface Operations 1,016 13 22 2 (26) (14)
First Uranium SA 1,046 17 26 (6) (16) (7)
Surface Operations 995 9 19 8 (10) (7)
INTERNATIONAL OPERATIONS 823 (9) 8 204 34 (66)
CONTINENTAL AFRICA 846 (4) 5 113 13 (6)
DRC
Kibali - Attr. 45% 6 717 - 33 4 4 (21)
Ghana
Iduapriem 911 - 27 10 (7) (10)
Obuasi 1,175 (25) (5) 3 35 6
Guinea
Siguiri - Attr. 85% 777 (9) (3) 34 6 9
Mali
Morila - Attr. 40% 6 1,137 56 3 (1) (12) (2)
Sadiola - Attr. 41% 6 957 (5) (24) 1 (9) 7
Yatela - Attr. 40% 6 1,931 33 7 (4) (3) (1)
Namibia
Navachab 733 (25) (5) 9 4 -
Tanzania
Geita 667 30 6 52 (16) 5
Non-controlling 5 11 1
interests, exploration
and other
AUSTRALASIA 850 (54) 9 22 52 (37)
Australia
Sunrise Dam 1,308 (24) 23 (16) 8 (32)
Tropicana - Attr. 70% 498 - 1 44 44 (4)
Exploration and other (6) - (1)
AMERICAS 765 4 15 68 (32) (24)
Argentina
Cerro Vanguardia - Attr. 682 11 6 23 (12) (5)
92.50%
Brazil
AngloGold Ashanti 717 (16) 16 31 17 (7)
Mineração
Serra Grande 879 30 10 1 (16) (5)
United States of America
Cripple Creek & Victor 899 24 29 11 (21) (7)
Non-controlling 2 - -
interests, exploration
and other
OTHER (4) (4) (3)
Sub-total 836 (7) 9 257 7 (72)
- 20 17
AngloGold Ashanti 257 27 (55)
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 June 2014 quarter on June 2013 quarter - increase (decrease).
5 Variance June 2014 quarter on March 2014 quarter - increase (decrease).
6 Equity accounted joint ventures.
Financial and Operating Report
OVERVIEW FOR THE QUARTER
AngloGold Ashanti continued to make progress in the second quarter on its five
key business objectives, namely: improving safety and sustainability; enhancing
financial flexibility; optimising overhead and operating costs and capital
expenditure; improving the quality of its portfolio; and maintaining long-term
optionality in the business.
Strong performance across each of these objectives supported the key strategic
objective of sustainably improving cash flow and returns. Despite a 9% lower
gold price in the three months to June 30, compared with the same period a year
earlier, strong business improvements were made on all key metrics. Gold
production rose 17% year-on-year to 1,098,000oz, which was ahead of guidance.
Total cash costs declined by 7% from a year earlier to $836/oz, despite ongoing
inflationary pressure in all operating jurisdictions. This was at the lower end
of the guidance range. The operating result was assisted by a positive
production performance from the South Africa Region in particular, as well as
first-time second-quarter contributions from the new Tropicana and Kibali
mines. All elements of the business have maintained a sharp focus on cost
controls to help drive further productivity gains.
Expenditure on corporate and marketing costs and exploration and evaluation
costs decreased by 65% and 58%, respectively year-on-year, helping drive
all-in-sustaining costs down by 19% to $1,060/oz. These fundamental
improvements together helped drive a 140% improvement in cash flow from
operating activities. On the back of these strong cash flows and ongoing cost
containment, net debt declined further, from $3.105bn, to $2.994bn. The key
ratio of net debt to adjusted EBITDA declined to 1.73 times. AngloGold Ashanti
agreed two new, five-year revolving credit facilities with its syndicate of
banks -- $1bn and A$500m - replacing existing facilities. The new RCFs extend
maturities and carry more favourable financial covenant ratios of 3.5 times
Total Net Financial Indebtedness : EBITDA (as defined in the RCF's), further
improving financial flexibility.
This slate of operating and financial achievements was all made against the
backdrop of a record safety performance. The company recorded no fatalities for
the quarter, for the third time in its history and the first time since 2010.
Several operations passed key milestones and records were set on key safety
metrics.
"We're on track to meet our targeted savings in operating and overhead costs -
all while delivering production growth and a record safety result," Srinivasan
Venkatakrishnan, Chief Executive Officer of AngloGold Ashanti, said. "We're
making hard decisions as we focus on free cash flow and returns for
shareholders through active portfolio management, discipline, and strong
leadership."
Summary table comparing 2014 performance to date with the same periods last
year:
Improved Improved H1
Q2 Q2 H1 H1 14 vs
2013 2014 Q14 vs 2013 2014
Q13 H1 13
Gold price received ($/oz) 1,421 1,289 (9%) 1,529 1,289 (16%)
Gold Production (koz) 935 1,098 17% 1,834 2,152 17%
Total cash costs ($/oz) 898 836 7% 896 804 10%
Corporate and marketing costs* 57 20 65% 123 45 63%
($m)
Exploration and evaluation costs 79 33 58% 158 62 61%
($m)
Capital expenditure ($m) 556 311 44% 1,069 585 45%
All-in sustaining costs**($/oz) 1,302 1,060 19% 1,288 1,027 20%
All-in costs**($/oz) 1,679 1,192 29% 1,650 1,153 30%
Cash inflow from operating 140 336 140% 496 687 39%
activities ($m)
Adjusted EBITDA ($m) 288 382 33% 796 858 8%
Free cash flow ($m) (488) 34 107% (727) 56 108%
* including administration and other expenses.
** World Gold Council Standard, excludes stockpiles written off.
SAFETY
The second quarter passed without a fatality at any of the company's
operations, the third time in AngloGold Ashanti that this achievement has been
recorded, and this being the first time in almost four years. The fatality
injury frequency rate across the business improved another 20% from the record
figures posted at the end of 2013. The safety result reflects an exceptionally
strong performance across all regions, with South Africa in particular - which
posted strong year-on-year improvements across all key safety metrics -- making
important strides toward our goal of zero harm. Eleven operating units ended
the quarter without a single lost time injury and of those, eight have that
same achievement for the year to date. And importantly, more than 2,200 fewer
lost work days have been reported so far this year, relative to the same period
in 2013, underscoring the fact that safety improvements are not only the right
thing to pursue for an ethical standpoint, but are important from a business
perspective, too.
Notwithstanding this, our focus on safety continues particularly where we have
seen success on visible leadership, technology application, hazard management
and ongoing focus on training, Major Hazard Management through identification
and monitoring of critical controls and High Potential Incidents with a view of
enhancing organisational learning and institutionalising change in order to
further improve our safety record progress going forward.
"The gains made on safety are the most important indicators of progress for
us." Venkat said. "But we recognise that complacency is the enemy, and we need
to continue our intense focus on employing technology and improving our
behaviours at every level, to gain more ground."
FINANCIAL AND CORPORATE REVIEW
The reported adjusted headline (AHE) loss of $4m included a number of once off
events such as closure and termination costs, stockpile and consumable stores
provisions and the initial retrenchments at Obuasi as detailed in the table
below.
Second-quarter normalised adjusted headline earnings amounted to $76m, or 19 US
cents per share, in the three months ended to 30 June 2014, compared with
normalised adjusted headline earnings of $9m, or 2 US cents per share a year
earlier, the second quarter of 2013. The previous quarter, normalised adjusted
headline earnings were $119m, or 29 US cents per share.
Reconciliation of Q2 2014 and Q2 2013 published, to normalised Adjusted
Headline Earnings:
Q2 2014 Q2 2013
$m $m
AHE loss published (4) (135)
Stockpile and consumable inventory provisions 11 125
Amortisation adjustments 3 -
Operational and corporate redundancies (mainly Obuasi) 27 4
Operational closure and termination costs (mainly Yatela) 27 -
Indirect taxation and legal provisions 4 15
Income tax provisions 6 -
Other 2 -
AHE normalised 76 9
AHE normalised cents per share 19 2
The second quarter 2014 normalised adjusted headline earnings of $76m compared
to adjusted headline earnings in the second quarter of 2013 of $9m, were
affected mainly by the higher production sold ($152m) and weaker local
currencies ($50m), lower corporate and marketing expenditure ($59m), partly
offset by annual cost inflation ($69m) and the lower gold price ($97m).
Second quarter normalised AHE of $76m, compared to first quarter normalised
AHE of $119m, was affected by higher operational cash cost items such as fuel,
power, consumable stores and service charges, lower income from joint ventures
and associates (mainly Kibali) and the impact of stronger local currencies
which were partly offset by lower taxation charges. See
www.anglogoldashanti.com for graph
Operational performance for the second quarter was strong, with production
better than market guidance. Total cash costs were at the lower end of the
guidance range, despite ongoing inflationary pressure and stronger local
currencies. Production was 1,098,000oz at an average total cash cost of $836/
oz, compared to 1,055,000oz at $770/oz the previous quarter and 935,000oz at
$898/oz in the second quarter of 2013. Guidance for the quarter was 1,020,000oz
to 1,060,000oz at a total cash cost of $830/oz to 865/oz. Year-on-year costs
benefited from higher output, weaker currencies and early indications that a
range of cost saving initiatives continue to gain traction.
Production from all regions -- except for the Americas -- improved
year-on-year, helped by the contribution from Kibali and Tropicana and a strong
performance from the South Africa Region. South African operations achieved a
4% year-on-year increase in production to 319,000oz; Continental Africa
improved 15% to 395,000oz; Australia was up 210% year-on-year to 155,000oz; the
Americas declined 3% year-on-year to 229,000oz.
Gold income increased by $79m from $1,242m in the quarter ended 30 June 2013 to
$1,321m in the corresponding period of 2014, representing a 6% increase
year-on-year. The increase was mainly due to a 19%, or 176,000oz, increase in
gold sold from 912,000oz for the quarter ended 30 June 2013 to 1,088,000oz for
the same period in 2014. The increase was partially offset by the $132/oz, or
9% decrease in the gold price received from $1,421/oz for the quarter ended 30
June 2013 to $1,289/oz for the corresponding period in 2014.
Total cash costs dropped $62/oz compared to the previous year, from $898/oz to
$836/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)
excluding stockpile write offs were $1,060/oz, a 19% improvement year-on-year,
and 7% higher than the previous quarter due to capital expenditure profiling.
The year-on-year decline in AISC was due to the higher ounces sold, improved
total cash costs, lower corporate and exploration costs as well as lower
sustaining capital expenditure.
Weaker local currencies against the US dollar in the second quarter of 2014
compared to the same period in 2013 played a role in improved operating costs
as the South African rand depreciated by 11%, the Australian dollar by 6%, the
Brazilian real by 8% and the Argentina Peso by 54% over this period.
Production costs increased from $840m in the quarter ended 30 June 2013 to
$894m in the quarter ended 30 June 2014, which represents a $54m, or 6%
increase, due mainly to the first-time introduction of two new mines - Kibali
and Tropicana. The higher operational costs, given the two new operations,
include fuel and power costs and service costs, partly offset by a reduction in
labour costs, contractor costs and consumable stores as well as the weakening
of local currencies against the US dollar.
Fuel and Power costs increased from $155m in the quarter ended 30 June 2013 to
$174m in the quarter ended 30 June 2014, which represents a $19m, or 12%,
increase. The power cost increase was due to electricity tariff and annual
inflationary increases, in addition to the costs incurred by the two new mines.
Cost of sales was $1,064m for the quarter ended 30 June 2014 compared to
$1,012m for the corresponding period in 2013, again due largely to the
first-time second-quarter contribution of two new mines, Tropicana and Kibali.
Included in cost of sales is amortisation of tangible and intangible assets and
movements in unsold gold inventory, which were at similar levels to the periods
under review at $173m in the quarter ended 30 June 2013 and to $170m in the
same period of 2014. Amortisation decreased by $26m representing the impact of
impairments in 2013 and higher ounces produced and the revision of useful lives
in 2014. Movements in inventory change related to the cost of unsold gold which
decreased from $41m in June 2013 quarter to $18m in the June 2014 quarter.
Despite the introduction of two new operations, labour costs declined 10% from
$315m in the quarter ended 30 June 2013 to $285m in the corresponding period of
2014. This was mainly due to rationalisation and restructuring across the
group. Contractor costs declined 19% from $162m in the quarter ended 30 June
2013 to $131m in the quarter ended 30 June 2014. The decrease in contractor
costs was primarily a result of negotiating lower contract rates and the lower
utilisation of mine contractors.
(Loss) profit attributable to equity shareholders for the second quarter of
2014 was a loss of $80m, compared to $39m profit for the previous quarter and a
loss of $2,165m for the second quarter of 2013 which was impacted by asset
impairments and stockpile write-downs. The current quarter was impacted by
operational closure and termination costs, operational restructuring costs,
impairments of investments and inventory write-downs.
Total capital expenditure during the second quarter was $311m (including equity
accounted joint ventures), compared with $274m the previous quarter and $556m
in the second quarter of 2013. Of the total capital expenditure, non-sustaining
project capital expenditure during the quarter amounted to $107m. Capital
expenditure is expected to increase in the second half of the year mainly due
to timing of expenditures forecast in the Americas region.
At the end of the second quarter of 2014, net debt was $2.994bn compared to
$3.095bn in the previous quarter, in part due to the $105m proceeds from the
sale of Navachab, resulting in a reduction in the Net Debt to adjusted EBITDA
ratio to 1.73 times, compared with 1.90 times at 31 March 2014. Free cash flow
improved from $22m in the previous quarter to $34m in the second quarter of
2014, reflecting higher production and the sale of royalties.
CORPORATE UPDATE
Natural gas for Western Australian mines: On 21 July 2014, Anglogold Ashanti
signed agreements with the natural gas infrastructure company APA Group (APA)
for the transportation of natural gas to the Sunrise Dam and Tropicana gold
mines in Western Australia. Under the agreements, APA will construct a new
292km pipeline which will connect to its Goldfields Gas Pipeline via the
lateral pipeline at the Murrin Murrin nickel mine, and then extend past Sunrise
Dam to Tropicana.
Natural gas is a cleaner fuel than diesel and its use will likely reduce
greenhouse gas emissions. The power stations at both mines will be modified in
order to run on 100% natural gas, while retaining diesel backup capability.
The shift is expected to reduce cash operating costs at both sites by between
A$25/oz to $30/oz, while also providing continuity of fuel supply, reduce
exposure to diesel price volatility and significantly reduce the number of
trucks on the road, providing an important safety benefit as well as reducing
road maintenance costs.
Construction is scheduled to start in February 2015 with first gas scheduled to
be available at Tropicana in January 2016.
CFO Announcement: On 7 July 2014, AngloGold Ashanti announced the appointment
of Christine Ramon to the post of Chief Financial Officer and Executive
Director of the Board, from 1 October 2014. The appointment of Ms. Ramon, a
chartered accountant, follows a global search by the Board of Directors, as
indicated in our press release of 21 May 2013. She was formerly the CFO at
Sasol Limited, Africa's largest publicly-traded energy and chemicals company
for seven years until September of last year. She will replace Richard Duffy,
who will then step down from both the Board and the Executive Committee.
Sale of Navachab mine complete: AngloGold Ashanti announced the completion of
its sale of AngloGold Ashanti Namibia (Proprietary) Limited, a wholly owned
subsidiary which owns the Navachab Gold Mine, to QKR Corporation Limited. The
transaction, announced on 10 February this year, was concluded on 30 June 2014
resulting in proceeds of $105m.
Corporate refinancing: The Company has successfully signed a new, five-year
$1bn revolving credit facility with an increased net debt to adjusted EBITDA
covenant ratio of 3.5 times versus the previous facility at 3 times, with one
conditional six-month period waiver of up to 4.5 times. These same terms have
been applied to a new A$500m five-year facility, which has replaced the
previous A$600m revolving credit facility.
"These new facilities further improve our tenor and financial flexibility and
create additional, long-term liquidity on our balance sheet," Chief Financial
Officer Richard Duffy said. "The improved terms and longer maturities are
especially important given the volatile gold price environment."
Restructure of the Obuasi mining operation: 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 workforce redundancies. Fundamental changes aimed at
systemically addressing legacies, infrastructure, development constraints and
cash outflows are being implemented while surface production, exploration
drilling and decline development remain ongoing. 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.
The Amendment to Program of Mining Operations, which details technical,
environmental, financial and social details around the transition, was
submitted to the Government of Ghana and key regulators for review on 18 July,
to be followed by a two-month consultation period. An amended Environment
Management Plan has been filed with the Ghana Environmental Protection Agency
and a multi-stakeholder working group has been established. AngloGold Ashanti
remains firmly committed to engaging with the Government of Ghana, its
employees and other important local and regional stakeholders throughout this
process, as it seeks to return this key asset to sustainable, long-term
profitability for the benefit of all constituencies.
WAGE NEGOTIATIONS UPDATE
The two-year wage agreement with the majority of the employees in AngloGold
Ashanti's South Africa region, and in the country's gold sector, was concluded
in September 2013 and backdated to 1 July 2013. The Association of Mining and
Construction Union, or AMCU, voluntarily participated in the negotiations but
did not sign the wage agreement. However, the wage agreement was extended to
all employees irrespective of their union affiliation, as a result the AMCU
members have all benefited from the above-mentioned increase.
On 5 June this year, the Labour Court declared that a threatened strike by AMCU
members would be unprotected under South African law. AMCU has since
simultaneously brought two applications for leave to appeal; one to the Labour
Court (seeking permission to appeal to the Labour Appeal Court); and another to
the Constitutional Court (seeking permission to appeal directly to the
Constitutional Court). The application to the Labour Court for permission to
appeal to the Labour Appeal Court has been brought on a conditional basis.
AngloGold Ashanti continues to engage its employees directly in addition to
communicating through their labour unions in order to ensure that constructive
dialogue is maintained.
UPDATE ON CAPITAL PROJECTS
In the Americas, the CC&V Mine Life Extension (MLE) Project continues to
progress in line with expectations. The valley leach facility (VLF) and
associated gold recovery plant is on schedule to commission in mid-2016. The
MLE2 Project was 47% complete through the second quarter. The High Grade Mill
is on schedule and is expected to deliver first gold production towards the end
of 2014. All major mill equipment has been set in place and the remaining work
is largely piping and electrical. Overall mill construction is 79% complete.
Mill concrete is 99% complete, steel is 91% complete, and all major mill
equipment has been set in place.
In the DRC, at Kibali the vertical shaft is progressing well with the shaft now
at a depth of 525m, with focus shifting towards off-shaft lateral development.
The development work on the twin declines is progressing well with a total of
1,803 lateral metres achieved for the second quarter, exceeding the planned
metres for the second quarter by a margin of 18.9% or 287m. The Nzoro 66KV line
and substation has been commissioned with Nzoro 2 delivering 10MW in early July
2014. The integration between hydro and thermal power without any power outages
is currently being worked upon. From a production perspective, the ramp up of
the sulphide circuit has been a challenge due to late commissioning of the
secondary crushing circuit, regrind circuit and pump cells. During the second
quarter, more clay and transitional sulphides were treated than forecast,
causing materials handling problems and flotation inefficiency. The oxide
circuit also experienced some unexpected stoppages. The focus of the site teams
is to ramp up production and improve plant availability.
TECHNOLOGY AND INNOVATION UPDATE
During the second quarter, the Technology Innovation Consortium 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. Progress on various aspects of the project is as follows:
Reef Boring:
TauTona mine - Test site:
In the second quarter, nine holes were drilled. Due to the change in reef
channel width, the holes were drilled at different diameters ranging from 660mm
up to 1,060mm.
The overall results of these holes in the testing drilling sequence proved to
be successful. The results are being applied to the current drilling test
sites at TauTona mine.
Testing with the modified drilling machines has commenced at two of the test
sites during the second quarter and the third after quarter-end. The focus was
on eliminating teething problems associated with commissioning and by the end
of the period the drilling time per hole stood at 4.5 days.
Great Noligwa mine:
Testing of the new narrow reef machine started and five holes were drilled in
the second quarter. While 150mm pilot holes were successfully bored, wider
reaming of those holes presented challenges. The softer footwall conditions
associated with the C-reef ground are contributing to this challenge and the
reaming bits are currently being modified to investigate if this will resolve
the problem.
Site Equipping:
Site equipping, opening up and development of the 2014 test sites at TauTona
mine have been completed. Work continues on equipping the test sites at
Kopanang, Great Noligwa and Moab Khotsong mines.
2. Ore body Knowledge and Exploration:
A trial site was established and the current machine modified for rotary
percussion drilling. Five trial holes will be drilled to compare the results
from penetration rate and accuracy to reverse circulation drilling results
achieved thus far. The trial will continue into the third quarter.
3. Ultra High Strength Backfill (UHSB):
The underground backfill plant is commissioned and allows for a semi-automated
process to prepare the UHSB required to fill the holes at TauTona mine
production sites. All available reef bored holes in the test site block have
been filled. Installation of monitoring instrumentation remains part of the
ongoing process at the test site. Testing at surface will recommence during the
third quarter to continue development of a pumping solution towards a 1,000m
horizontal distance target.
OPERATING HIGHLIGHTS
The South African operations produced 319,000oz at a total cash cost of $863/oz
during the second quarter of 2014 compared to the 307,000oz at a total cash
cost of $890/oz during the second quarter of 2013. Although year-on-year costs
improved predominantly as a result of Project500 initiatives, the improvements
were partially offset by seasonal power tariffs, annual wage increases and
other increased costs in certain areas that continued to exceed inflation.
At West Wits, production was 144,000oz at a total cash cost of $794/oz during
the second quarter of 2014 compared to 136,000oz at a total cash cost of $829/
oz during the second quarter of 2013. The second quarter performance reflected
an improvement on the back of seismic related activities, safety stoppages and
high heat conditions experienced at Mponeng at the beginning of the quarter.
Mponeng reflected a 14% improvement in yield compared to the same quarter last
year as a result of reduced stope-widths and an increased overall grade due to
lower intake of waste tonnages. Total cash costs decreased 4% at West Wits
operations, demonstrating benefits from cost optimisation measures. TauTona is
continuing with energy optimisation project which has yielded positive results.
Production from the Vaal River operations increasedin the second quarter of
2014 to 120,000oz at a total cash cost of $875/oz despite safety related
disruptions, compared with the second quarter of 2013 at 110,000oz at a total
cash cost of $958/oz. Kopanang was adversely impacted by ingress of water into
ore passes caused by a pipe failure leading to a delay in reef processing for
the quarter. The average grade recovered at Moab Khotsong increased by 31%
year-on-year. 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 ongoing inflationary pressure, the focus on cost management
resulted in savings. Moab Khotsong was the lowest cost mine for the South
African region at a total cash cost of $707/oz. The region is in the process of
a segmented integration of Great Noligwa into Moab Khotsong to maximise
synergies and reduce overheads.
Total Surface Operations production for the second quarter of 2014 was 55,000oz
at a total cash cost of $1,016/oz, compared to 62,000oz for the second quarter
of 2013 at a total cash cost of $903/oz. Due to delays of reef delivery from
Kopanang, lower grade marginal ore dump was utilised to fill the milling
circuit. Grades deteriorated specifically at Mine Waste Solutions where higher
grade dams have been depleted and operations shifted to reclamation sites with
lower gold recovery rates. The uranium circuit was completed, but has been
reconfigured, changing the circuit from reverse to forward leach to improve
gold recovery. Commissioning is expected to take place in the third quarter of
this year.
Continental Africa Region production during the second quarter of 2014 was
395,000oz at a total cash cost of $846/oz compared to 343,000oz at a total cash
cost of $883/oz during the second quarter of 2013. Total production for the
region increased mainly due to the contribution from the start of the Kibali
mine and as a result of increased production from Siguiri following access to
higher grade ore sources. Production during the quarter continued to improve by
6% compared with the previous quarter despite the operating challenges at
Kibali and Obuasi. Total cash costs, excluding Kibali, decreased as a result of
the marginally higher production together with the realisation of company- wide
cost reduction initiatives which have mitigated the effects of inflationary
pressures.
In Ghana, Iduapriem production for the second quarter of 2014 was 47,000oz at a
total cash cost of $911/oz compared to 51,000oz at a total cash cost of $911/oz
during the second quarter of 2013. The reduction in production year-on-year was
as a result of a deliberate operating and financial strategy to process the
existing lower grade surface ore stockpiles. However, production for the
quarter increased 4% compared to the previous quarter as a result of a decrease
in recovered grade due to treatment of lower grade ore stockpiles, offset by an
increase in tonnage throughput due to higher production shifts in the quarter.
At Obuasi, production for the second quarter of 2014 was 64,000oz at a total
cash cost of $1,175/oz compared to 58,000oz at a total cash cost of $1,560/oz
for the second quarter of 2013. Although the mine had a decrease in recovered
grade, this was fully offset by an increase in tonnage throughput due to an
increase in surface tonnes processed together with increased plant
availability. The cost initiatives contributed to a reduction in the cash costs
as we continue to realise savings. In addition, the development of the decline
ramp from surface met the crew developing the ramp from underground. The
decline ramp now extends to 17 level from surface. The Amendment to Program of
Mining Operations, which details technical, environmental, financial and social
details around the transition, was submitted to the Government of Ghana and key
regulators for review on 18 July, to be followed by a two-month consultation
period. An amended Environment Management Plan has been filed with the Ghana
Environmental Protection Agency and a multi-stakeholder working group has been
established. AngloGold Ashanti remains firmly committed to engaging with the
Government of Ghana, its employees and other important local and regional
stakeholders throughout this process, as it seeks to return this key asset to
sustainable, long-term profitability for the benefit of all constituencies.
In the Republic of Guinea, Siguiri's production was 80,000oz at a total cash
cost of $777/oz for the second quarter of 2014 compared to 62,000oz at a total
cash cost of $850/oz for the second quarter of 2013. The increase in production
was a result of a 33% increase in recovered grade as a result of accessing ore
from higher grade ore sources.
In Mali, Morila's production for the second quarter of 2014 was 10,000oz at a
total cash cost $1,137/oz compared to 17,000oz at a total cash cost of $728/oz
for the second quarter of 2013. The decrease in production year-on-year was as
a result of the operation transitioning to closure as it reaches the end of its
production life cycle. At Sadiola, production for the quarter was 23,000oz at a
total cash cost of $957/oz, compared to 23,000oz at a total cash cost of $1,003
/oz for the second quarter of 2013. The current quarter however reflected
improved production of 21% relative to the previous quarter, as a result of an
increase in tonnage throughput due to effective plant utilisation together with
more production shifts. At Yatela, in line with the transition to closure plan,
there was minimal production activity, with total production for the quarter
amounting to 2,000oz at a total cash cost of $1,931/oz.
In Namibia, Navachab's production for the second quarter of 2014 was 17,000oz
at a total cash cost of $733/oz. The transaction to sell the mine was concluded
in June 2014.
In Tanzania, Geita's production for the second quarter of 2014 was 110,000oz at
a total cash cost of $667/oz, compared to 113,000oz at a total cash cost of
$514/oz for the second quarter of 2013. Production for the second quarter of
2014 however, increased 4% as a result of increased tonnage throughput due to
higher production shifts completed compared to the previous quarter. Total cash
costs increased as a result of higher mining and processing costs incurred
during the quarter in line with the operational plans.
In the Democratic Republic of the Congo, Kibali's production for the second
quarter of 2014 was 41,000oz at a total cash cost of $717/oz. Current quarter
production was 20% lower than the previous quarter mainly due to operational
challenges encountered with the commissioning of the sulphide circuit, plant
availability on the oxide circuit and poor recovery due to transition ore.
The Americas region in the second quarter of 2014 produced 229,000oz at a total
cash cost of $765/oz, compared to 235,000oz at a total cash cost of $733/oz in
the second quarter of 2013. Production at CC&V in the second quarter of 2014,
was 49,000oz at a total cash cost of $899/oz compared to 60,000oz at a total
cash cost of $726/oz in the second quarter of 2013. This reduction resulted
from production delayed due to material placed in areas deep in the Valley
Leach Facility during the quarter. The heap leach stacking plan was modified to
defer production from the first half to the second half of the year (2014), by
starting with placing ore deep and go shallower in the latter part of the year.
Stockpiling of mill grade ore continues to ensure mill production can commence
when the mill is commissioned.
Production in Brazil suffered from the temporary loss of access to a higher
grade area at AngloGold Ashanti Mineração, which plans to recover the lost
output later this year once the area becomes available. AngloGold Ashanti
Mineração produced 88,000oz at total cash cost of $717/oz in the second quarter
of 2014 compared to 76,000oz at a total cash cost of $858/oz in the second
quarter of 2013. During 2014, a new ore body started production at Córrego do
SÃtio (Sulphide II). However, compared to the previous quarter, production was
lower from both Lamego and Córrego do SÃtio (CdS) Oxide. In addition,
production at Cuiabá was 6% lower mainly due to lower feed grades as a
consequence of geotechnical issues at the mine, changes in the ore mineral
characteristics at CdS Oxide operation affecting its recovery and lower
flotation and CIL recoveries at CdS Sulphide operation, partially off-set by
higher tonnage.
At Serra Grande, production in the second quarter of 2014 was 30,000oz at total
cash of $879/oz compared to 37,000oz at a total cash cost of $675/oz for the
second quarter of 2013. The lower production is due to a 17% decline in grades.
High grade contribution from the ore body in Mina III is reducing. However,
AngloGold Ashanti is engaged in an ongoing exploration programme for higher
grade areas, one of which is Ingá, expected to come into production in 2016.
In Argentina, Cerro Vanguardia´s production for the second quarter of 2014 was
62,000oz at a total cash cost of $682/oz, compared with 62,000oz at a total
cash cost of $615/oz for the second quarter of 2013. Higher grade was partially
offset by lower treated tonnes. Production increased 7% compared to the
previous quarter mainly due to higher grade in line with the production plan.
Cash costs increased reflecting higher equipment maintenance costs and greater
consumption of materials. Lower deferred stripping (because deferral of waste
costs was discontinued for two pits - LMCB9 and ODCB7) also impacted negatively
compared to the previous quarter. Rising costs were partially compensated by
the positive impact of stockpile movement derived from higher tonnes generated.
In Australasia production for the second quarter of 2014 was 155,000oz at a
total cash cost of $850/oz compared to 50,000oz at a total cash cost of $1,829/
oz for the second quarter of 2013, with the increase in production mainly
attributed to the start of the Tropicana mine during this period.
Production at Sunrise Dam in the second quarter of 2014 was 62,000oz at total
cash cost of $1,308/oz, compared to 50,000oz at a total cash cost of $1,713/oz
for the second quarter of 2013. The increase in production was due to tonnes
mined and head grade from the underground mine, which both increased when
compared to the same period last year. Underground ore tonnes mined increased
by 11% whilst head grade increased 20% to approximately 2.4g/t. As planned,
gold production decreased by 12% from the first quarter of 2014 as ore
stockpiles were drawn down, contributing to an increase in costs. A total of
37m of underground capital development and 2,401m of operational development
were completed during the quarter. The mine had a 20% increase in ore
production from underground. Underground mine grade was at 3.1g/t for the
second quarter compared to 2.77g/t in the previous quarter (a 12% increase).
Tropicana's production for the second quarter of 2014 was 93,000oz at a total
cash cost $498/oz, in line with budget. The processing plant reached nameplate
throughput capacity in the March quarter and this rate was maintained in the
June quarter.
EXPLORATION
Total expensed exploration and evaluation costs (including technology) during
the second quarter, inclusive of expenditure at equity accounted joint
ventures, were $36m ($9m on Brownfield, $13m on Greenfield and $14m on
pre-feasibility studies), compared with $91m 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 South Africa, five deep surface drilling sites were in operation during the
second quarter, one on the Moab Khotsong Mine and four at Mponeng (WUDLs).
Diamond drilling commenced at MZA10 and the hole is currently at 779.5m. This
hole is located to the east of the recently complete holes, MMB 6 and 7, and it
is targeted to provide value information in the lower reaches of the early gold
portion of Project Zaaiplaats.
Drilling of site UD51 was completed. Plugging of the hole and rehabilitation of
the site continues. UD59 advanced well during the second quarter and reached a
depth of 3,145m in the Allanridge Formation lava's. Redrill at UD60 has
advanced to 1,346m after further in hole problems during the second quarter.
The diamond rig has been erected at UD58A and the hole is currently being
straightened and is at a depth of 291m.
In Tanzania at Geita Gold Mine exploration focused on infill drilling
programmes at Geita Hill East (4,691m RC&DD) and Geita Hill West (515m RC) and
Advance Grade Control drilling commenced at Star & Comet Cut 2 Pit (286m RC).
Detailed routine geological pit mapping continued to improve the geological
model and enhance the understanding of controls on mineralisation at Geita
Hill, Nyankanga and Star & Comet pits. Interpretative geological sections are
currently being compiled for all known deposits as part of a programme to
develop 3D geological models over Geita Hill, Star & Comet and
Matandani-Kukuluma.
In Guinea, at Siguiri Gold Mine, a total of 72 holes were completed with 5,797m
drilled during the second quarter. This comprised of 1,462m diamond and 2,738m
RC infill drilling from the Kami Pit Fresh Rock project, and 1,597m RC from the
Balato North1 reconnaissance target.
Core processing is completed and detailed logging of 18 diamond drillholes were
completed during the second quarter, including additional geotechnical DD holes
selected to supply additional information to the combination plant expansion
project PFS.
In Ghana, at Obuasi, Gold Mine a total of 2,563m of underground drilling was
completed from the Above 50 Level 41S-294W site. The purpose of this infill
drilling is to increase confidence in portions of Block 9/Red Zone 6 currently
classified as Inferred Mineral Resource.
In Mali at Sadiola, 6,262m of RC drilling was completed. Drilling took place at
FE4S, Tabakoto, TB6, Antarctica, S2, FE2S, and FE4SE oxide targets. Results
were generally disappointing, with FE4S, TB6 and S2 showing low oxide
potential. Drilling along Tabakoto strike confirmed thick oxide cover and
returned isolated and narrow gold intersections in both sulphide and oxide with
mineralisation apparently controlled by folding.
In Brazil, exploration work for AGABM continued at the Cuiaba, Lamego and CdS
production centers. During the second quarter, 20,170m were drilled
collectively in the surface and underground drilling programmes. Geological
modelling continued for near mine exploration targets. At Serra Grande, 12,935m
of drilling were completed to infill and extend ore bodies near mine
infrastructure.
In Colombia, drilling and Mineral Resource modelling to support the
Pre-Feasibility Study continued at the Gramalote Joint Venture. This included
2,135m completed for Mineral Resource infill drilling and testing opportunities
for Mineral Resource addition. At La Colosa, drilling activities included
6,295m completed for Mineral Resource infill and extension. Site
investigation, hydrology and geotechnical drilling programmes continued.
At Sunrise Dam in Australia, exploration was focussed on Mineral Resource
definition and extension work, utilising two underground diamond drill rigs
(8,960m) and one RC drill rig (5,574m). RC drilling was focussed on Sunrise
Shear Zone Panel 4 and Sunrise Shear South, while diamond drilling focussed on
Vogue, Midway Shear Zone and Cosmo East. At Tropicana, design, permitting and
site preparation for the 3D seismic survey to image the mineralised zone down
dip of Tropicana continued. The survey is expected to start in the third
quarter of 2014 to help inform targeting of thicker zones of mineralisation
below the current open pit designs and extents of existing drilling.
During the second quarter, aircore drilling at the Tumbleweed prospect, 15km
north of Tropicana Gold Mine was completed. A limited campaign of RC drilling
at the Highball prospect, 2km west of the mine, was also completed.
Detailed information on the exploration activities and studies both for
brownfields and greenfields is available on the AngloGold Ashanti website (
www.anglogoldashanti.com ).
OUTLOOK
Production guidance is estimated to be broadly in line with the guidance of the
previous quarter of between 1,060kozs to 1,090kozs at total cash costs of $850/
oz to $890/oz, assuming average exchange rates against the US dollar of 10.65
(Rand), 2.28 (Brazil Real), 0.93 (Aus$) and 8.55 (Argentina Peso). Fuel is
estimated at $110/bl.
The production estimate factors' in the lost ounces due to the sale of
Navachab, winding down of production at Obuasi, Siguiri production levels
normalizing and Tropicana recovering after resolving challenges with plant
availability in July. In addition, production losses following an earthquake
near the Vaal River Operation on 5 August, are preliminarily estimated at as
much as 30,000oz, based on early assessments of damage to underground and
surface mining and power infrastructure, as well as the estimated time to
safely ramp up production to normal levels. Safety will not be compromised for
production. AngloGold Ashanti retains the right to revise this guidance figure,
should new information on the impacts of the seismic event come to light.
Annual guidance remains intact, in line with the appropriate currency
forecasts.
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.
Independent auditor's review report on the Condensed Consolidated Financial
Information for the quarter and six months ended 30 June 2014 to the
Shareholders of AngloGold Ashanti Limited
We have reviewed the condensed consolidated financial statements of AngloGold
Ashanti Limited (the company) contained in the accompanying quarterly report
from pages 14 to 28, which comprise the accompanying condensed consolidated
statement of financial position as at 30 June 2014, the condensed consolidated
income statement, statement of comprehensive income, statement of changes in
equity and statement of cash flows for the quarter and six months then ended,
and selected explanatory notes.
Directors' Responsibility for the Condensed Consolidated Financial Statements
The directors are responsible for the preparation and presentation of these
condensed consolidated financial statements in accordance with the
International Financial Reporting Standard, (IAS) 34 Interim Financial
Reporting as issued by the International Accounting Standards Board (IASB), the
SAICA Financial Reporting Guides, as issued by the Accounting Practices
Committee and Financial Reporting Pronouncements as issued by the Financial
Reporting Standards Council, and the requirements of the Companies Act of South
Africa, and for such internal control as the directors determine is necessary
to enable the preparation of condensed consolidated financial statements that
are free from material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express a conclusion on these interim financial
statements based on our review. We conducted our review in accordance with
International Standard on Review Engagements (ISRE) 2410, Review of Interim
Financial Information Performed by the Independent Auditor of the Entity. This
standard requires us to conclude whether anything has come to our attention
that causes us to believe that the interim financial statements are not
prepared in all material respects in accordance with the applicable financial
reporting framework. This standard also requires us to comply with relevant
ethical requirements.
A review of interim financial statements in accordance with ISRE 2410 is a
limited assurance engagement. We perform procedures, primarily consisting of
making enquiries of management and others within the entity, as appropriate,
and applying analytical procedures, and evaluate the evidence obtained.
The procedures performed in a review are substantially less than and differ in
nature from those performed in an audit conducted in accordance with
International Standards on Auditing. Accordingly, we do not express an audit
opinion on these financial statements.
Conclusion
Based on our review, nothing has come to our attention that causes us to
believe that the accompanying condensed consolidated financial statements of
the company for the quarter and six months ended 30 June 2014 are not prepared,
in all material respects, in accordance with International Financial Reporting
Standard, (IAS) 34 Interim Financial Reporting as issued by the IASB, the
SAICA Financial Reporting Guides as issued by the Accounting Practices
Committee and Financial Reporting Pronouncements as issued by the Financial
Reporting Standards Council and the requirements of the Companies Act of South
Africa.
Ernst & Young Inc.
Director - Roger Hillen
Registered Auditor
Chartered Accountant (SA)
102 Rivonia Road, Sandton
Johannesburg, South Africa
7 August 2014
Group income statement
Quarter Quarter Quarter Six Six
months months
ended ended ended ended ended
June March June June June
2014 2014 2013 2014 2013
US Dollar million Notes Reviewed Reviewed Reviewed Reviewed Reviewed
Revenue 2 1,358 1,359 1,301 2,717 2,819
Gold income 2 1,321 1,324 1,242 2,644 2,705
Cost of sales 3 (1,064) (1,012) (1,012) (2,076) (2,040)
(Loss) gain on non-hedge (5) (16) 100 (21) 100
derivatives and other
commodity contracts
Gross profit 252 296 330 547 765
Corporate administration, (20) (25) (57) (45) (123)
marketing and other
expenses
Exploration and evaluation (33) (30) (79) (62) (158)
costs
Other operating expenses 4 (7) (5) (10) (12) (11)
Special items 5 (17) (7) (3,203) (24) (3,228)
Operating profit (loss) 175 229 (3,019) 404 (2,755)
Dividends received 2 - - - - 5
Interest received 2 6 6 10 12 17
Exchange (loss) gain (8) (6) 5 (14) -
Finance costs and unwinding 6 (71) (71) (69) (142) (133)
of obligations
Fair value adjustment on (31) (70) - (101) -
$1.25bn bonds
Fair value adjustment on - - - - 9
option component of
convertible bonds
Fair value adjustment on - - 175 - 312
mandatory convertible bonds
Share of associates and 7 (85) 19 (183) (66) (190)
joint ventures' (loss)
profit
(Loss) profit before (14) 107 (3,081) 93 (2,735)
taxation
Taxation 8 (60) (62) 895 (121) 797
(Loss) profit for the period (74) 45 (2,186) (28) (1,938)
Allocated as follows:
Equity shareholders (80) 39 (2,165) (41) (1,926)
Non-controlling interests 6 6 (21) 13 (12)
(74) 45 (2,186) (28) (1,938)
Basic (loss) earnings per -20 10 (559) (10) (497)
ordinary share (cents) (1)
Diluted (loss) earnings per -20 10 (575) (10) (548)
ordinary 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.
The reviewed financial statements for the quarter and six months ended 30 June
2014 have been prepared by the corporate accounting staff of AngloGold Ashanti
Limited headed by Mr John Edwin Staples (BCompt (Hons); CGMA), the Group's
Chief Accounting Officer. This process was supervised by Mr Richard Duffy
(BCom; MBA), the Group's Chief Financial Officer and Mr Srinivasan
Venkatakrishnan (BCom; ACA (ICAI)), the Group's Chief Executive Officer. The
financial statements for the quarter and six months ended 30 June 2014 were
reviewed, but not audited, by the Group's statutory auditors, Ernst & Young
Inc.
Group statement of comprehensive income
Quarter Quarter Quarter Six Six
months months
ended ended ended ended ended
June March June June June
2014 2014 2013 2014 2013
US Dollar million Reviewed Reviewed Reviewed Reviewed Reviewed
(Loss) profit for the period (74) 45 (2,186) (28) (1,938)
Items that will be reclassified
subsequently to profit or loss:
Exchange differences on (8) (8) (191) (16) (340)
translation of foreign operations
Share of associates and joint - 1 - 1 -
ventures' other comprehensive
income
Net gain (loss) on - 9 (12) 9 (26)
available-for-sale financial
assets
Release on impairment of 1 - 13 1 25
available-for-sale financial
assets
Deferred taxation thereon - (4) - (4) 2
1 5 1 6 1
Items that will not be
reclassified subsequently to
profit or loss:
Actuarial gain recognised 6 10 30 16 30
Deferred taxation thereon (2) (2) (8) (4) (8)
4 8 22 12 22
Other comprehensive (loss) income (3) 6 (168) 3 (317)
for the period, net of tax
Total comprehensive (loss)
income for the period, net of
tax
(77) 51 (2,354) (25) (2,255)
Allocated as follows:
Equity shareholders (83) 45 (2,333) (38) (2,243)
Non-controlling interests 6 6 (21) 13 (12)
(77) 51 (2,354) (25) (2,255)
Rounding of figures may result in
computational discrepancies.
Group statement of financial position
As at As at As at As at
June March December June
2014 2014 2013 2013
US Dollar million Notes Reviewed Reviewed Audited Reviewed
ASSETS
Non-current assets
Tangible assets 4,955 4,885 4,815 4,659
Intangible assets 270 269 267 281
Investments in associates and joint 1,348 1,391 1,327 1,127
ventures
Other investments 144 141 131 130
Inventories 602 617 586 590
Trade and other receivables 23 25 29 34
Deferred taxation 187 169 177 546
Cash restricted for use 36 37 31 29
Other non-current assets 56 50 41 7
7,621 7,584 7,404 7,403
Current assets
Other investments - 1 1 -
Inventories 1,002 1,016 1,053 1,068
Trade and other receivables 356 380 369 450
Cash restricted for use 18 14 46 34
Cash and cash equivalents 604 525 648 415
1,980 1,936 2,117 1,967
Non-current assets held for sale 14 - 158 153 137
1,980 2,094 2,270 2,104
TOTAL ASSETS 9,601 9,678 9,674 9,507
EQUITY AND LIABILITIES
Share capital and premium 11 7,032 7,024 7,006 6,758
Accumulated losses and other reserves (3,969) (3,884) (3,927) (3,552)
Shareholders' equity 3,063 3,140 3,079 3,206
Non-controlling interests 38 35 28 (14)
Total equity 3,101 3,175 3,107 3,192
Non-current liabilities
Borrowings 3,619 3,569 3,633 2,212
Environmental rehabilitation and 1,060 1,013 963 1,043
other provisions
Provision for pension and 150 152 152 164
post-retirement benefits
Trade, other payables and deferred 14 14 4 2
income
Deferred taxation 607 579 579 583
5,450 5,327 5,331 4,004
Current liabilities
Borrowings 187 235 258 1,281
Trade, other payables and deferred 777 793 820 868
income
Bank overdraft 4 22 20 31
Taxation 82 67 81 74
1,050 1,117 1,179 2,254
Non-current liabilities held for sale 14 - 59 57 57
1,050 1,176 1,236 2,311
Total liabilities 6,500 6,503 6,567 6,315
TOTAL EQUITY AND LIABILITIES 9,601 9,678 9,674 9,507
Rounding of figures may result in
computational discrepancies.
Group statement of cash flows
Quarter Quarter Quarter Six Six
months months
Ended ended ended ended ended
June March June June June
2014 2014 2013 2014 2013
US Dollar million Reviewed Reviewed Reviewed Reviewed Reviewed
Cash flows from operating
activities
Receipts from customers 1,386 1,288 1,343 2,674 2,835
Payments to suppliers and (1,016) (905) (1,147) (1,921) (2,230)
employees
Cash generated from operations 370 383 196 753 605
Dividends received from joint - - - - 8
ventures
Taxation refund - 37 - 38 -
Taxation paid (34) (70) (56) (104) (117)
Net cash inflow from operating 336 350 140 687 496
activities
Cash flows from investing
activities
Capital expenditure (257) (220) (418) (477) (802)
Interest capitalised and paid - - (3) - (7)
Expenditure on intangible assets (3) - (20) (3) (33)
Proceeds from disposal of 26 - 7 27 7
tangible assets
Other investments acquired (22) (26) (24) (48) (56)
Proceeds from disposal of other 20 24 22 43 49
investments
Investments in associates and (11) (40) (124) (51) (274)
joint ventures
Proceeds from disposal of - - 1 - 6
associates and joint ventures
Loans advanced to associates and (2) (4) (22) (6) (23)
joint ventures
Loans repaid by associates and - - 2 - 2
joint ventures
Dividends received - - - - 5
Proceeds from disposal of 105 - - 105 1
subsidiary
Cash in subsidiary disposed and 3 (1) - 2 -
transfers to held for sale
(Increase) decrease in cash (3) 26 (5) 23 (4)
restricted for use
Interest received 7 4 4 11 9
Net cash outflow from investing (137) (237) (580) (374) (1,120)
activities
Cash flows from financing
activities
Proceeds from borrowings 76 15 319 90 466
Repayment of borrowings (132) (171) (72) (302) (168)
Finance costs paid (43) (81) (62) (124) (100)
Revolving credit facility and - - - - (5)
bond transaction costs
Dividends paid (3) - (27) (3) (53)
Net cash (outflow) inflow from (102) (237) 158 (339) 140
financing activities
Net increase (decrease) in cash 97 (124) (282) (26) (484)
and cash equivalents
Translation - (1) (15) (2) (25)
Cash and cash equivalents at 503 628 680 628 892
beginning of period
Cash and cash equivalents at end 600 503 383 600 383
of period (1)
Cash generated from operations
(Loss) profit before taxation (14) 107 (3,081) 93 (2,735)
Adjusted for:
Movement on non-hedge derivatives 6 16 (100) 21 (100)
and other commodity contracts
Amortisation of tangible assets 179 175 206 355 419
Finance costs and unwinding of 71 71 69 142 133
obligations
Environmental, rehabilitation 6 8 (15) 14 (22)
and other expenditure
Special items (9) 6 3,204 (5) 3,234
Amortisation of intangible 9 9 8 17 9
assets
Fair value adjustment on $1.25bn 31 70 - 101 -
bonds
Fair value adjustment on option - - - - (9)
component of convertible bonds
Fair value adjustment on - - (175) - (312)
mandatory convertible bonds
Interest received (6) (6) (10) (12) (17)
Share of associates and joint 85 (19) 183 66 190
ventures' (profit) loss
Other non-cash movements 27 13 8 42 14
Movements in working capital (15) (67) (101) (81) (199)
370 383 196 753 605
Movements in working capital
Decrease (increase) in 8 (10) (58) (1) (98)
inventories
Decrease (increase) in trade and 20 (36) (1) (16) 18
other receivables
Decrease in trade, other (43) (21) (42) (64) (119)
payables and deferred income
(15) (67) (101) (81) (199)
(1) The cash and cash equivalents balance at 30 June 2014 includes a bank
overdraft included in the statement of financial position as part of current
liabilities of $4m (31 March 2014 : $22m; 30 June 2013 : $31m) (September 2013:
$25m).
Rounding of figures may result in computational discrepancies.
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
Loss for the period (1,926)
Other comprehensive income (loss) 1
Total comprehensive (loss) income - - (1,926) - 1
Shares issued 16
Dividends paid (40)
Dividends of subsidiaries
Translation (20) 10 (2)
Balance at 30 June 2013 6,758 157 (2,762) (2) 12
Balance at 31 December 2013 7,006 136 (3,061) (1) 18
Loss for the period (41)
Other comprehensive income (loss) 1 6
Total comprehensive income (loss) - 1 (41) - 6
Shares issued 26
Share-based payment for share awards (5)
net of exercised
Dividends of subsidiaries
Translation 1
Balance at 30 June 2014 7,032 132 (3,101) (1) 24
Rounding of figures may result in computational discrepancies.
Available 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
Loss for the period (1,926) (12) (1,938)
Other comprehensive income 22 (340) (317) (317)
(loss)
Total comprehensive (loss) 22 (340) (2,243) (12) (2,255)
income
Shares issued 16 16
Dividends paid (40) (40)
Dividends of subsidiaries - (23) (23)
Translation 12 - -
Balance at 30 June 2013 (55) (902) 3,206 (14) 3,192
Balance at 31 December 2013 (25) (994) 3,079 28 3,107
Loss for the period (41) 13 (28)
Other comprehensive income 12 (16) 3 3
(loss)
Total comprehensive income 12 (16) (38) 13 (25)
(loss)
Shares issued 26 26
Share-based payment for share (5) (5)
awards
net of exercised
Dividends of subsidiaries - (3) (3)
Translation 1 (1) -
Balance at 30 June 2014 (13) (1,010) 3,063 38 3,101
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 Six months Six months Six months
ended ended ended ended ended
Jun Mar Jun Jun Jun
2014 2014 2013 2014 2013
Reviewed Reviewed Reviewed Reviewed Reviewed
US Dollar million
Gold income
South Africa 390 372 423 763 930
Continental Africa 535 532 477 1,067 1,012
Australasia 189 215 71 405 165
Americas 305 310 337 614 732
1,419 1,429 1,308 2,848 2,839
Equity-accounted (99) (105) (65) (204) (134)
investments included above
1,321 1,324 1,242 2,644 2,705
Gross profit (loss)
South Africa 52 44 180 96 334
Continental Africa 113 119 100 232 228
Australasia 22 59 (30) 81 (27)
Americas 68 92 100 160 277
Corporate and other (4) (1) - (5) (5)
252 313 350 565 807
Equity-accounted - (17) (20) (17) (43)
investments included above
252 296 330 547 765
Capital expenditure
South Africa 68 51 123 119 223
Continental Africa 121 127 221 249 429
Australasia 24 27 100 51 201
Americas 98 69 113 167 211
Corporate and other - - - - 4
311 274 556 585 1,069
Equity-accounted (52) (53) (117) (105) (215)
investments included above
260 221 439 480 854
Quarter ended Six months ended
Jun Mar Jun Jun Jun
2014 2014 2013 2014 2013
oz (000)
Gold production
South Africa 319 290 307 609 634
Continental Africa 395 374 343 769 619
Australasia 155 155 50 310 111
Americas 229 236 235 465 469
1,098 1,055 935 2,152 1,834
As at As at As at As at
Jun Mar Dec Jun
2014 2014 2013 2013
Reviewed Reviewed Audited Reviewed
US Dollar million
Total assets (1)
South Africa 2,303 2,311 2,325 2,446
Continental Africa 3,311 3,478 3,391 3,401
Australasia 1,073 1,059 1,108 1,104
Americas 2,340 2,263 2,203 2,169
Corporate and other 573 567 647 387
9,601 9,678 9,674 9,507
(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). There
were no further impairments in the current period.
Rounding of figures may result in computational discrepancies.
Notes
for the quarter and six months ended 30 June 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.
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 and six months ended 30 June 2014.
2. Revenue
Quarter ended Six months ended
Jun Mar Jun Jun Jun
2014 2014 2013 2014 2013
Reviewed Reviewed Reviewed Reviewed Reviewed
US Dollar million
Gold income 1,321 1,324 1,242 2,644 2,705
By-products (note 3) 30 29 42 60 77
Dividends received - - - - 5
Royalties received (note 5) 1 1 6 2 16
Interest received 6 6 10 12 17
1,358 1,359 1,301 2,717 2,819
3. Cost of sales
Quarter ended Six months ended
Jun Mar Jun Jun Jun
2014 2014 2013 2014 2013
Reviewed Reviewed Reviewed Reviewed Reviewed
US Dollar million
Cash operating costs 861 762 825 1,624 1,611
By-products revenue (note 2) (30) (29) (42) (60) (77)
831 733 783 1,564 1,534
Royalties 34 37 30 71 67
Other cash costs 9 8 11 16 20
Total cash costs 874 778 824 1,651 1,621
Retrenchment costs 3 6 4 9 8
Rehabilitation and other non-cash 40
costs 17 22 12 24
Production costs 894 806 840 1,700 1,653
Amortisation of tangible assets 179 175 206 355 419
Amortisation of intangible assets 9 9 8 17 9
Total production costs 1,082 990 1,053 2,073 2,081
Inventory change (18) 22 (41) 4 (41)
1,064 1,012 1,012 2,076 2,040
4. Other operating expenses
Quarter ended Six months ended
Jun Mar Jun Jun Jun
2014 2014 2013 2014 2013
Reviewed Reviewed Reviewed Reviewed Reviewed
US Dollar million
Pension and medical defined 4
benefit provisions 2 2 7 11
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 4 3 3 7 -
Miscellaneous 1 - - 1 -
7 5 10 12 11
Rounding of figures may result in computational discrepancies.
5. Special items
Quarter ended Six months ended
Jun Mar Jun Jun Jun
2014 2014 2013 2014 2013
Reviewed Reviewed Reviewed Reviewed Reviewed
US Dollar million
Net impairment and derecognition
of goodwill, tangible assets and
intangible assets (note 9) - - 2,982 - 2,983
Impairment of other investments
(note 9) 1 - 14 1 26
Net (profit) loss on disposal and
derecognition of land, mineral
rights, tangible assets and
exploration properties (note 9) (25) 2 (4) (23) (3)
Royalties received (note 2) (1) (1) (6) (2) (16)
Indirect tax expenses and legal
claims 12 - 28 12 31
Inventory write-off due to fire at
Geita - - - - 14
Legal fees and other costs related
to contract termination and
settlement costs 3 6 - 9 4
Write-down of stockpiles and heap
leach to net realisable value and
other stockpile adjustments - - 178 - 178
Corporate retrenchment costs - - 4 - 4
Retrenchment and related costs 25 - - 25 -
Write-off of a loan - - 7 - 7
Loss on sale of Navachab (note 14) 2 - - 2 -
17 7 3,203 24 3,228
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.
For the quarter and six months ended 30 June 2014, no asset impairments or
reversal of 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:
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 of $3,029m were recognised during 2013.
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.
In addition, net impairments of $162m were recognised on the entity's
investments in equity-accounted associates and joint ventures considering
quoted share prices, their respective financial positions and anticipated
declines in operating results of these entities. Impairments to net realisable
value of $178m were raised at 30 June 2013 and impairments of $38m were raised
at 31 December 2013 due to stockpile abandonments and other specific
adjustments.
6. Finance costs and unwinding of obligations
Quarter ended Six months ended
Jun Mar Jun Jun Jun
2014 2014 2013 2014 2013
Reviewed Reviewed Reviewed Reviewed Reviewed
US Dollar million
Finance costs 64 64 54 128 103
Unwinding of obligations,
accretion of convertible bonds
and other discounts 7 7 15 14 30
71 71 69 142 133
7. Share of associates and joint ventures' (loss) profit
Quarter ended Six months ended
Jun Mar Jun Jun Jun
2014 2014 2013 2014 2013
Reviewed Reviewed Reviewed Reviewed Reviewed
US Dollar million
Revenue 121 117 75 238 155
Operating costs, special items (296)
and other expenses (197) (99) (64) (135)
Net interest received 1 2 2 3 1
(Loss) profit before taxation (75) 20 13 (55) 21
Taxation (4) (1) (9) (5) (17)
(Loss) profit after taxation (79) 19 4 (60) 4
Net impairment of investments in
associates and joint
ventures (note 9) (6) - (187) (6) (194)
(85) 19 (183) (66) (190)
Rounding of figures may result in computational discrepancies.
In July 2014, AngloGold Ashanti and other shareholders of Rand Refinery (Pty)
Limited, an associate of the company, entered into an agreement with Rand
Refinery to provide an irrevocable, subordinated loan facility to the maximum
value of R1.2 billion (US$113m). The facility allows for amounts to be advanced
to Rand Refinery to finance the purchase of gold in the event that Rand
Refinery finally determines that a shortfall of 87 000 ounces of gold actually
exists when comparing the physical inventory of Rand Refinery to the records of
amounts it holds on behalf of third parties.
The facility, if drawn down, will be convertible to equity after a period of 2
years on condition that all shareholders of Rand Refinery agree to the
conversion.
Due to the uncertainty around Rand Refinery's possible gold shortfall position
and the time it is taking to resolve the matter, Rand Refinery has been unable
to complete its annual financial statements for the year ended 30 September
2013. As a result, AngloGold Ashanti has adjusted its share of equity profits
accounted for as part of its investment in Rand Refinery, and which is based on
the unaudited management accounts of Rand Refinery, with an estimate of its
share of the probable losses at Rand Refinery of $51m related to the gold
shortfall position.
8. Taxation
Quarter ended Six months ended
Jun Mar Jun Jun Jun
2014 2014 2013 2014 2013
Reviewed Reviewed Reviewed Reviewed Reviewed
US Dollar million
South African taxation
Mining tax 10 14 (7) 24 10
Non-mining tax 1 (3) - (2) -
Prior year under (over) 5
provision 7 (2) 1 (1)
Deferred taxation
Temporary differences 2 (20) (69) (18) (59)
Unrealised non-hedge derivatives
and other commodity contracts (2) (4) 27 (6) 27
18 (15) (49) 3 (23)
Foreign taxation
Normal taxation 37 46 (15) 83 40
Prior year over provision (9) (3) - (12) -
Deferred taxation(1)
Temporary differences 14 33 (831) 47 (814)
42 77 (846) 118 (774)
60 62 (895) 121 (797)
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.
9. Headline (loss) earnings
Quarter ended Six months ended
Jun Mar Jun Jun Jun
2014 2014 2013 2014 2013
Reviewed Reviewed Reviewed Reviewed Reviewed
US Dollar million
The (loss) profit attributable to
equity shareholders has been
adjusted by the following to
arrive at headline (loss)
earnings:
(Loss) profit attributable to
equity shareholders (80) 39 (2,165) (41) (1,926)
Net impairment and derecognition
of goodwill, tangible assets and
intangible assets (note 5) - - 2,982 - 2,983
Net (profit) loss on disposal and
derecognition of land, mineral
rights, tangible assets and
exploration properties (note 5) (25) 2 (4) (23) (3)
Loss on sale of Navachab (note
14) 2 - - 2 -
Impairment of other investments
(note 5) 1 - 14 1 26
Net impairment of investments in
associates and joint ventures
(note 7) 6 - 187 6 194
Taxation - current portion 7 - 1 7 1
Taxation - deferred portion - (3) (902) (3) (903)
(89) 38 112 (51) 372
Headline (loss) earnings per
ordinary share (cents) (1) (22) 9 29 (13) 96
Diluted headline (loss) earnings
per ordinary share (cents) (2) (22) 9 (13) (13) 19
(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.
10. Number of shares
Quarter ended Six months ended
Jun Mar Jun Jun Jun
2014 2014 2013 2014 2013
Reviewed Reviewed Reviewed Reviewed Reviewed
Authorised number of shares:
Ordinary shares of 25 SA cents each 600,000,000 600,000,000 600,000,000 600,000,000 600,000,000
E ordinary shares of 25 SA cents each 4,280,000 4,280,000 4,280,000 4,280,000 4,280,000
A redeemable preference shares of 50 SA cents each 2,000,000 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 5,000,000
Issued and fully paid number of shares:
Ordinary shares in issue 403,364,237 403,087,362 383,781,042 403,364,237 383,781,042
E ordinary shares in issue 690,984 697,896 1,592,308 690,984 1,592,308
Total ordinary shares: 404,055,221 403,785,258 385,373,350 404,055,221 385,373,350
A redeemable preference shares 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000
B redeemable preference shares 778,896 778,896 778,896 778,896 778,896
In calculating the basic and diluted number of ordinary shares outstanding for
the period, the following were taken into consideration:
Ordinary shares 403,259,109 402,785,093 383,715,540 403,029,051 383,571,718
E ordinary shares 699,769 704,108 1,599,076 698,794 1,604,681
Fully vested options 2,030,986 2,477,845 1,735,734 2,420,030 2,059,490
Weighted average number of shares 405,989,864 405,967,046 387,050,350 406,147,875 387,235,889
Dilutive potential of share options - 1,185,208 - - -
Dilutive potential of convertible bonds - - 18,140,000 - 18,140,000
Diluted number of ordinary shares 405,989,864 407,152,254 405,190,350 406,147,875 405,375,889
11. Share capital and premium
As at
Jun Mar Dec Jun
2014 2014 2013 2013
Reviewed Reviewed Audited Reviewed
US Dollar Million
Balance at beginning of period 7,074 7,074 6,821 6,821
Ordinary shares issued 21 13 259 16
E ordinary shares issued and cancelled - - (6) -
Sub-total 7,095 7,087 7,074 6,837
Redeemable preference shares held within
the group (53) (53) (53) (53)
Ordinary shares held within the group - - (6) (10)
E ordinary shares held within the group (10) (10) (9) (16)
Balance at end of period 7,032 7,024 7,006 6,758
12. Exchange rates
Jun Mar Dec Jun
2014 2014 2013 2013
Unaudited Unaudited Unaudited Unaudited
ZAR/USD average for the year to date 10.67 10.82 9.62 9.18
ZAR/USD average for the quarter 10.51 10.82 10.12 9.45
ZAR/USD closing 10.63 10.52 10.45 9.94
AUD/USD average for the year to date 1.09 1.12 1.03 0.99
AUD/USD average for the quarter 1.07 1.12 1.08 1.01
AUD/USD closing 1.06 1.08 1.12 1.08
BRL/USD average for the year to date 2.30 2.36 2.16 2.03
BRL/USD average for the quarter 2.23 2.36 2.27 2.07
BRL/USD closing 2.20 2.26 2.34 2.20
ARS/USD average for the year to date 7.83 7.60 5.48 5.12
ARS/USD average for the quarter 8.05 7.60 6.07 5.24
ARS/USD closing 8.13 8.00 6.52 5.37
Rounding of figures may result in computational discrepancies.
13. Capital commitments
Jun Mar Dec Jun
2014 2014 2013 2013
Reviewed Reviewed Audited Reviewed
US Dollar Million
Orders placed and outstanding on capital
contracts at the prevailing rate of
exchange (1) 325 379 437 601
(1) Includes capital commitments relating to associates and joint ventures.
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. Non-current assets and liabilities held for sale
Effective 30 April 2013, Navachab mine located in Namibia was classified as
held for sale. Navachab gold mine was previously recognised as a combination
of tangible assets, goodwill, current assets, current and long-term
liabilities. 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 purchase consideration consists of two components:
an initial cash payment and a deferred consideration in the form of a net
smelter return (NSR).
On 30 June 2014, AngloGold Ashanti Limited announced that the sale had been
completed in accordance with the sales agreement with all conditions precedent
being met. A loss on disposal of $2m (note 5) was realised on the sale on
Navachab.
Navachab is not a discontinued operation and is not viewed as part of the core
assets of the company.
15. 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
Jun Mar Dec Jun
2014 2014 2013 2013
Reviewed Reviewed Audited Reviewed
Carrying amount 3,806 3,804 3,891 3,493
Fair value 3,822 3,743 3,704 3,400
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 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
US Dollar million Jun 2014 Mar 2014
Assets measured at
fair value
Available-for-sale
financial assets
Equity securities 60 - - 60 60 - - 60
Liabilities
measured at fair
value
Financial
liabilities at
fair value through
profit or loss
Mandatory
convertible bonds - - - - - - - -
$1.25bn bonds 1,457 - - 1,457 1,400 - - 1,400
Rounding of figures may result in computational discrepancies.
Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total
US Dollar million Dec 2013 Jun 2013
US Dollar million
Assets measured at
fair value
Available-for-sale
financial assets
Equity securities 47 - - 47 42 2 - 44
Liabilities
measured at fair
value
Financial
liabilities at
fair value through
profit or loss
Mandatory - - - -
convertible bonds 270 - - 270
$1.25bn bonds 1,353 - - 1,353 - - - -
16. Contingencies
AngloGold Ashanti's material contingent liabilities and assets at 30 June 2014
and 31 December 2013 are detailed below:
Contingencies and guarantees
Dec
Jun 2014 2013
Reviewed Audited
US Dollar
million
Contingent liabilities
Groundwater pollution (1) - -
Deep groundwater pollution - Africa (2) - -
Withholding taxes - Ghana (3) 30 28
Litigation - Ghana (4) (5) (6) 97 97
ODMWA litigation (7) 211 -
Other tax disputes - AngloGold Ashanti Brasil Mineração
Ltda (8) 40 38
VAT disputes - Mineração Serra Grande S.A.(9) 17 16
Tax dispute - AngloGold Ashanti Colombia S.A.(10) 199 188
Tax dispute - Cerro Vanguardia S.A.(11) 53 63
Sales tax on gold deliveries - Mineração Serra Grande
S.A.(12) - 101
Contingent assets
Indemnity - Kinross Gold Corporation (13) (11) (60)
Royalty - Tau Lekoa Gold Mine (14) - -
Royalty - Navachab Mine QKR (15) - -
Financial Guarantees
Oro Group (Pty) Limited (16) 9 10
645 481
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 the magnitude of the
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-technologies can 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 of Mineral 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.
Withholding taxes - AngloGold Ashanti (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 variouswithholding taxes
amounting to $30m (2013: $28m). Management is of the opinion that the
withholding taxes were not properly assessed 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 Obuasi mine inGhana. MBC has also asserted various labour
claims on behalfof itself and certain of its former contractors andemployees at
the Obuasi mine. 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 2 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. On 15 May 2014
AGAG filed a Notice of Appeal at the Court of Appeal. AGA further filed a Stay
of Proceedings Pending Appeal at the High Court. On 11 May 2014, the High Court
granted AGA's application for Stay of Proceedings pending appeal. AGAG awaits
the record of proceedings to be transmitted to the Court of Appeal for the
parties to file their written submissions.
Litigation - AGAG received a summons on 2 April 2013 from Abdul Waliyu and 152
others in which the plaintiffs allegethat 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 current and/or historical operations of the Pompora
Treatment Plant (PTP) which was decommissioned in 2000. The claim is to award
generaldamages, 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.
AGAGfiled 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 Mankayi vs. 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 as
yet 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 of a
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. AngloGoldAshanti
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). On 30
May 2014 AngloGold Ashanti submitted its answering affidavit.
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 pleas 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.
Other tax disputes - In November 2007, the Departamento Nacional de
Produção Mineral (DNPM), a Brazilian federal mining authority, issued a
tax assessment against AngloGold Ashanti Brazil Mineração Ltda (AABM) in the
amount of $21m (2013:$19m) relating to the calculation and payment 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
$19m (2013:$19m). Management isof the opinionthat these taxes are not
payable.
VAT disputes- MSG received a tax assessment inOctober 2003 from the State of
Minas Gerais related to VAT on gold bullion transfers. 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: $16m).
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 $35m (2013: $35m) will be payable if the tax
returns are amended. Penalties and interest for the additional taxes
are expected to be $164m (2013: $153m), based on Colombian tax law. The
company believes thatit has applied the tax legislation correctly. AGAC
requested in December 2013 that DIAN reconsider itsdecision and the 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.
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 (2013: $18m) 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 $38m
(2013: $45m). A new notification was received on 16 July 2014 from the tax
authorities that disallowed arguments from CVSA's initial response. CVSA will
file another response and has until the middle of August 2014 to do so.
Management is of the opinionthat the taxes are not payable.
Sales tax on gold deliveries - In 2006, Mineração Serra Grande S.A. (MSG),
received two tax assessments from the State of Goiás related to the payments of
state sales taxes at the rate of 12% on gold deliveries for export from one
Brazilian state to another during the period from February 2004 to the end of
May 2006. The first and second assessments were approximately $62m and $39m as
at 31 December 2013, respectively. Various legal proceedings have taken place
over the years with respect to this matter, as previously disclosed. On 5 May
2014, the State of Goiás published a law which enables companies to settle
outstanding tax assessments of this nature. Under this law, MSG settled the two
assessments in May 2014 by paying $14m in cash and by utilising $29m of
existing VAT credits. The utilisation of the VAT credits is subject to legal
confirmation from the State of Goiás within 180 days from the settlement
agreement date. Management has concluded that the likelihood of the State of
Goiás declining the utilisation of the VAT credits or part thereof is remote.
The cash settlement is further set off by an indemnity from Kinross of $6m.
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 item 9 above. At 30 June 2014, the company has
estimated that the maximum contingentasset is $11m (2013: $60m).
Royalty- As a result of the sale of the interest in the Tau Lekoa Gold Mine
during 2010, the group is entitled to receive a royalty on the production of a
total of 1.5Moz by the Tau Lekoa Gold 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
producedin 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 Lekoa assets.
Royalties on 455,765oz (2013: 413,246oz) produced have been received to date.
Royalty- As a result of the sale of Navachab, AngloGold Ashanti will receive a
net smelter return paid quarterly for seven years from 1 July 2016, determined
at 2% of ounces sold during the relevant quarter subject to a minimum average
gold price of $1,350 and capped at a maximum of 18,750 ounces sold per quarter.
Provisionof surety - The company has providedsurety 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 $9m (2013: $10m). The probability of the
non- performance under the suretyships is considered minimal. The suretyship
agreements have a termination notice period of 90 days.
17. 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:
Jun 2014
US Dollar million
Recoverable fuel duties (1) 10
Recoverable value added tax 30
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.
18. Borrowings
AngloGold Ashanti's borrowings are interest bearing.
19. Announcements
Completion of the sale of the Navachab Mine: on 1 July 2014, AngloGold Ashanti
announced it had, on 30 June 2014, completed the sale of AngloGold Ashanti
Namibia (Proprietary) Limited, a wholly owned subsidiary which owns the
Navachab Gold Mine, to QKR Corporation Limited. The transaction was announced
on 10 February 2014.
Appointment of new Chief Financial Officer: On 7 July 2014, AngloGold Ashanti
announced that Ms Christine Ramon will be taking over the post of Chief
Financial Officer and Executive Director of the board from 1 October 2014.
Rand Refinery and Corporate Update: on 25 July 2014, AngloGold Ashanti drew
shareholders attention to an announcement by Rand Refinery (Pty) Limited
regarding a loan facility extended to it by certain of its shareholders
(including AngloGold Ashanti which owns 42.4% of the refinery), as a
precautionary measure. This follows challenges encountered in the
implementation of a new Enterprise Resource Planning system at the refinery.
AngloGold Ashanti recorded a provision of $51m during the second quarter.
In addition, AngloGold Ashanti noted that costs incurred in the previously
announced closure of the Yatela mine in Mali, and ongoing restructuring at its
Obuasi mine in Ghana, impacted earnings for the second quarter.
Update on South Africa Earthquake: On 6 August 2014, AngloGold Ashanti
confirmed that each one of the 3,300 people working underground at its Great
Noligwa and Moab Khotsong mines early in the morning on 5 August 2014, when a
5.3 magnitude earthquake struck South Africa's North West province, were safely
hoisted to surface. Twenty-eight employees who sustained minor injuries as a
result of the event received medical treatment.
20. Subsequent events
On 17th July 2014, AngloGold Ashanti Holdings plc cancelled its 2012 US$1bn
Revolving Credit Facility and signed a new 5 year US$1bn Revolving Credit
Facility. The facility is currently undrawn.
On 25 July 2014, AngloGold Ashanti Australia Limited signed a new 5 year A$500m
Revolving Credit Facility which replaces the existing A$600m Revolving Credit
Facility, which was due to mature in December 2015.
By order of the Board
S M PITYANA S VENKATAKRISHNAN
Chairman Chief Executive Officer
7 August 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 (loss)
earnings
Quarter ended Six months ended
Jun Mar Jun Jun Jun
2014 2014 2013 2014 2013
Unaudited Unaudited Unaudited Unaudited Unaudited
US Dollar million
Headline (loss) earnings (89) 38 112 (51) 372
(note 9)
Loss (gain) on unrealised 5 16 (100) 21 (100)
non-hedge derivatives and
other commodity contracts
Deferred tax on unrealised (2) (4) 27 (6) 27
non-hedge derivatives and
other commodity contracts
(note 8)
Fair value adjustment on 31 70 - 101 -
$1.25bn bonds
Fair value adjustment on - - - - (9)
option component of
convertible bonds
Fair value adjustment on - - (175) - (312)
mandatory convertible bonds
Provision for losses in 51 - - 51 -
associate
Adjusted headline (loss) (4) 119 (135) 115 (23)
earnings
Adjusted headline (loss) (1) 29 (35) 28 (6)
earnings per ordinary share
(cents) (1)
(1) Calculated on the basic weighted average
number of ordinary shares.
B Adjusted gross profit
Quarter ended Six months ended
Jun Mar Jun Jun Jun
2014 2014 2013 2014 2013
Unaudited Unaudited Unaudited Unaudited Unaudited
US Dollar million
Reconciliation of gross
profit to adjusted gross
profit:
Gross profit 252 296 330 547 765
Loss (gain) on unrealised 5 16 (100) 21 (100)
non-hedge derivatives and
other commodity contracts
Adjusted gross profit 257 312 231 568 665
C Price received
Quarter ended Six months ended
Jun Mar Jun Jun Jun
2014 2014 2013 2014 2013
Unaudited Unaudited Unaudited Unaudited Unaudited
US Dollar million / Imperial
Gold income (note 2) 1,321 1,324 1,242 2,644 2,705
Adjusted for (22) (20) (17) (41) (40)
non-controlling interests
1,299 1,304 1,225 2,603 2,665
Realised loss on other 4 5 7 9 14
commodity contracts
Associates and joint 99 106 65 204 134
ventures' share of gold
income including realised
non-hedge derivatives
Attributable gold income 1,402 1,415 1,297 2,816 2,814
including realised
non-hedge Derivatives
Attributable gold sold - 1,087 1,097 912 2,184 1,840
oz (000)
Price received per unit - $ 1,289 1,290 1,421 1,289 1,529
/oz
Rounding of figures may result in
computational discrepancies.
D All-in sustaining costs 1
Quarter ended Six months ended
Jun Mar Jun Jun Jun
2014 2014 2013 2014 2013
Unaudited Unaudited Unaudited Unaudited Unaudited
US Dollar million / Imperial
Cost of sales (note 3) 1,064 1,012 1,012 2,076 2,040
Amortisation of tangible (188) (184) (214) (372) (428)
and intangible assets (note
3)
Adjusted for 2 2 1 5 3
decommissioning
amortisation
Inventory writedown to net - - 178 - 178
realisable value and other
stockpile adjustments (note
5)
Corporate administration 19 25 57 44 122
and marketing related to
current operations
Associates and joint 72 68 44 141 91
ventures' share of costs
Sustaining exploration and 8 10 33 18 64
study costs
Total sustaining capex 205 174 271 378 515
All-in sustaining costs 1,183 1,107 1,383 2,290 2,585
Adjusted for (21) (17) (17) (38) (36)
non-controlling interests
and non -gold producing
companies
All-in sustaining costs 1,162 1,090 1,366 2,252 2,549
adjusted for
non-controlling interests
and non-gold producing
companies
Adjusted for stockpile (9) - (178) (9) (178)
write-offs
All-in sustaining costs 1,153 1,090 1,188 2,243 2,371
adjusted for
non-controlling interests,
non-gold producing
companies and stockpile
write-offs
All-in sustaining costs 1,183 1,107 1,383 2,290 2,585
Non-sustaining project 107 100 285 207 554
capital expenditure
Technology improvements 5 4 2 9 4
Non-sustaining exploration 23 21 51 43 103
and study costs
Corporate and social 6 5 11 12 12
responsibility costs not
related to current
operations
All-in costs 1,324 1,237 1,731 2,561 3,258
Adjusted for (19) (14) (21) (33) (44)
non-controlling interests
and non -gold producing
companies
All-in costs adjusted for 1,305 1,223 1,710 2,528 3,215
non-controlling interests
and non-gold producing
companies
Adjusted for stockpile (9) - (178) (9) (178)
write-offs
All-in costs adjusted for 1,296 1,223 1,532 2,519 3,037
non-controlling interests,
non-gold producing
companies and stockpile
write-offs
Gold sold - oz (000) 1,087 1,097 912 2,184 1,840
All-in sustaining cost 1,060 993 1,302 1,027 1,288
(excluding stockpile
write-offs) per unit - $/oz
All-in cost per unit 1,192 1,114 1,679 1,153 1,650
(excluding stockpile
write-offs) - $/oz
1 Refer to note J Summary
of Operations by Mine
E Total costs 2
Total cash costs (note 3) 874 778 824 1,651 1,621
Adjusted for (24) (34) (28) (58) (67)
non-controlling interests,
non-gold producing
companies and other
Associates and joint 68 68 44 137 90
ventures' share of total
cash costs
Total cash costs adjusted 918 812 840 1,730 1,644
for non-controlling
interests and non-gold
producing companies
Retrenchment costs (note 3) 3 6 4 9 8
Rehabilitation and other 17 22 12 40 24
non-cash costs (note 3)
Amortisation of tangible 179 175 206 355 419
assets (note 3)
Amortisation of intangible 9 9 8 17 9
assets (note 3)
Adjusted for 8 (4) (4) 4 (10)
non-controlling interests
and non-gold producing
companies
Equity-accounted associates 31 22 1 52 4
and joint ventures' share
of production costs
Total production costs 1,165 1,042 1,066 2,207 2,098
adjusted for
non-controlling interests
and non-gold producing
companies
Gold produced - oz (000) 1,097 1,055 935 2,152 1,834
Total cash cost per unit - 836 770 898 804 896
$/oz
Total production cost per 1,061 988 1,141 1,026 1,144
unit - $/oz
2 Refer to note J for
Summary of Operations by
mine
Rounding of figures may result in
computational discrepancies.
F Adjusted EBITDA
Quarter ended Six months ended
Jun Mar Jun Jun Jun
2014 2014 2013 2014 2013
Unaudited Unaudited Unaudited Unaudited Unaudited
US Dollar million / Imperial
(Loss) profit on ordinary (14) 107 (3,081) 93 (2,735)
activities before taxation
Add back :
Finance costs and unwinding 71 71 69 142 133
of obligation
Interest received (6) (6) (10) (12) (17)
Amortisation of tangible 188 184 214 372 428
and intangible assets (note
3)
Adjustments :
Dividend received (note 2) - - - - (5)
Exchange gain (loss) 8 6 (5) 14 -
Fair value adjustment on - - (175) - (312)
the mandatory convertible
bonds
Fair value adjustment on - - - - (9)
option component of
convertible bonds
Fair value adjustment on 31 70 - 101 -
$1.25bn bonds
Net impairment and - - 2,982 - 2,983
derecognition of goodwill,
tangible and intangible
assets (note 5)
Impairment of other 1 - 14 1 26
investments (note 5)
Write-down of stockpiles - - 178 - 178
and heap leach to net
realisable value and other
stockpile adjustments (note
5)
Write-off of loan (note 5) - - 7 - 7
Retrenchments at mining 3 6 4 9 8
operations (note 3)
Retrenchment and related 31 - - 31 -
costs
Net (profit) loss on (25) 2 (4) (23) (3)
disposal and derecognition
of assets (note 5)
Loss (gain) on unrealised 5 16 (100) 21 (100)
non-hedge derivatives and
other commodity contracts
Associates and joint 6 - 187 6 194
ventures' exceptional
expense
Associates and joint 83 20 9 103 20
ventures' - adjustments
for amortisation, interest,
taxation and other.
Adjusted EBITDA 382 476 288 858 796
G Interest cover
Adjusted EBITDA (note F) 382 476 288 858 796
Finance costs (note 6) 64 64 54 128 103
Capitalised finance costs - - 3 - 7
64 64 57 128 110
Interest cover - times 6 7 5 7 7
H Net asset value - cents per
share
As at As at As at As at
Jun Mar Dec Jun
2014 2014 2013 2013
Unaudited Unaudited Unaudited Unaudited
US Dollar million
Total equity 3,101 3,175 3,107 3,192
Mandatory convertible bonds - - - 270
3,101 3,175 3,107 3,462
Number of ordinary shares 404 404 403 385
in issue - million (note
10)
Net asset value - cents per 767 786 770 898
share
Total equity 3,101 3,175 3,107 3,192
Mandatory convertible bonds - - - 270
Intangible assets (270) (269) (267) (281)
2,831 2,906 2,840 3,181
Number of ordinary shares 404 404 403 385
in issue - million (note
10)
Net tangible asset value - 701 720 704 825
cents per share
I Net debt
Borrowings - long-term 3,619 3,569 3,633 2,212
portion
Borrowings - short-term 187 235 258 1,011
portion
Bank overdraft 4 22 20 31
Total borrowings (1) 3,810 3,826 3,911 3,254
Corporate office lease (24) (24) (25) (26)
Unamortised portion of the 25 (3) 2 34
convertible and rated bonds
Fair value adjustment on (159) (128) (58) -
$1.25bn bonds
Cash restricted for use (54) (51) (77) (63)
Cash and cash equivalents (604) (525) (648) (415)
Net debt excluding 2,994 3,095 3,105 2,784
mandatory 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 30 June 2014
Operations in South
Africa
(in $ millions,
except as otherwise
noted)
Great Moab Tau Surface South Total South
Noligwa Kopanang Khotsong Mponeng Tona operations Africa Africa Corporate
other (Operations)
All-in sustaining
costs
Cost of sales per
financial
statements 25 51 53 80 63 61 - 333 3
Amortisation of
tangible and
intangible
assets (2) (12) (13) (19) (14) (8) 1 (67) (2)
Corporate
administration
and marketing
related to
current
operations - - - - - - - - 20
Total
sustaining
capital
expenditure 3 7 9 18 11 12 (1) 59 1
All-in sustaining
costs 26 46 49 79 60 65 - 325 22
All-in sustaining
costs adjusted for
non-controlling
interests and
non-gold producing
companies 26 46 49 79 60 65 - 325 22
All-in sustaining
costs adjusted for
non-controlling
interests, non-gold
producing companies
and stockpile
write-offs 26 46 49 79 60 65 - 325 22
All-in sustaining
costs 26 46 49 79 60 65 - 325 22
Non-sustaining
Project capex - - 1 8 - - - 9 -
Technology
improvements - - - - - - 5 5 -
Non-sustaining
exploration and
study costs - - - - - - - - 1
Corporate and
social
responsibility
costs not
related to
current
operations - - - - - - - - 2
All-in costs 26 46 50 87 60 65 5 339 25
Adjusted for
non-controlling
interests and
non -gold
producing
companies(1) - - - - - - - - (1)
All-in sustaining
costs adjusted for
non-controlling
interests and
non-gold producing
companies 26 46 50 87 60 65 5 339 24
All-in sustaining
costs adjusted for
non-controlling
interests, non-gold
producing companies
and stockpile
write-offs 26 46 50 87 60 65 5 339 24
Gold sold - oz
(000)(3) 21 39 57 85 53 52 - 306 -
All-in sustaining
cost (excluding
stockpile
write-offs) per
unit - $/oz(4) 1,206 1,193 880 927 1,135 1,258 - 1,064 -
All-in cost per
unit (excluding
stockpile
write-offs) - $/oz
(4) 1,206 1,193 892 1,020 1,135 1,258 - 1,109 -
(1) Adjusting for non-controlling interest of items included in calculation, to
disclose the attributable portions only. Other consists of heap leach
inventory.
(2) 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.
(3) Attributable portion.
(4) In addition to the operational performances of the mines, all-in sustaining
cost per ounce, all-in 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 and
all-in 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.
(5) Corporate includes non-gold producing subsidiaries.
(6) Total cash costs per ounce calculation includes heap-leach inventory change.
For the three months ended 30 June 2014
Operations in
South Africa
(in $ millions,
except as
otherwise noted)
Great Moab Surface South Total South Corporate
Noligwa Kopanang Khotsong Mponeng TauTona operations Africa Africa (5)
other (Operations)
Total cash costs
Total cash costs
per financial
statements 23 41 42 63 51 56 (1) 275 1
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 23 41 42 63 51 56 (1) 275 1
Retrenchment
costs - - - 1 1 - 1 3 -
Rehabilitation
and other
non-cash costs - - - 1 - - 1 2 (1)
Amortisation of
tangible assets 2 11 12 17 13 8 (1) 62 1
Amortisation of
intangible
assets - 1 1 1 1 1 - 5 1
Adjusted for
non-controlling
interests,
non-gold
producing
companies(1) - - - - - - - - (1)
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 25 53 55 83 66 65 - 347 2
Gold produced -
oz (000) (3) 22 40 59 88 56 55 - 319 -
Total cash costs
per unit - $/oz
(4) 1,060 1,021 707 714 923 1,016 - 863 -
Total production
costs per unit -
$/oz(4) 1,186 1,331 937 941 1,195 1,171 - 1,089 -
For the three months ended 30 June 2014
Operations in DRC, Ghana, Guinea, Mali, Namibia and Tanzania
(in $ millions,
except as
otherwise noted)
DRC GHANA GUINEA MALI NAMIBIA TANZANIA Continental TOTAL
Africa CONTINENTAL
other AFRICA
Kibali Iduapriem Obuasi Siguiri Morila Sadiola Yatela Navachab Geita
All-in sustaining
costs
Cost of sales per
financial
statements - 49 81 91 - - - 12 89 2 324
Amortisation of
tangible and
intangible
assets - (7) (4) (8) - - - - (16) (1) (36)
Adjusted for
decoissioning
amortisation - - - 1 - - - - - - 1
Associates and
equity
accounted joint
ventures' share
of costs(2) 28 - - - 12 26 7 - - (1) 72
Sustaining
exploration and
study costs - - - - - - - - - 1 1
Total
sustaining
capital
expenditure - 3 16 9 - 2 - 1 29 - 60
All-in sustaining
costs 28 45 93 93 12 28 7 13 102 1 422
Adjusted for
non-controlling
interests and
non -gold
producing
companies(1) - - - (14) - - - - - (0) (14)
All-in sustaining
costs adjusted
for
non-controlling
interests and
non-gold
producing
companies 28 45 93 79 12 28 7 13 102 1 408
Adjusted for
stockpile
write-offs - - - - - - - (2) (7) - (9)
All-in sustaining
costs adjusted
for
non-controlling
interests,
non-gold
producing
companies and
stockpile
write-offs 28 45 93 79 12 28 7 11 95 1 399
All-in sustaining
costs 28 45 93 93 12 28 7 13 102 1 422
Non-sustaining
Project capex 49 - 12 - - - - - - - 61
Non-sustaining
exploration and
study costs 1 - - 2 - - - - - - 3
All-in costs 78 45 105 95 12 28 7 13 102 1 486
Adjusted for
non-controlling
interests and
non -gold
producing
companies(1) - - - (14) - - - - - - (14)
All-in sustaining
costs adjusted
for
non-controlling
interests and
non-gold
producing
companies 78 45 105 81 12 28 7 13 102 1 472
Adjusted for
stockpile
write-offs - - - - - - - (2) (7) - (9)
All-in sustaining
costs adjusted
for
non-controlling
interests,
non-gold
producing
companies and
stockpile
write-offs 78 45 105 81 12 28 7 11 95 1 463
Gold sold - oz
(000)(3) 38 46 65 86 10 25 3 17 110 - 401
All-in sustaining
cost (excluding
stockpile
write-offs) per
unit - $/oz(4) 738 998 1,420 916 1,173 1,078 2,836 651 878 - 998
All-in cost per
unit (excluding
stockpile
write-offs) - $/
oz(4) 2,047 998 1,605 935 1,173 1,078 2,836 651 878 - 1,157
For the three months ended 30 June 2014
Operations in DRC, Ghana, Guinea, Mali, Namibia and Tanzania
(in $ millions,
except as
otherwise noted)
DRC GHANA GUINEA MALI NAMIBIA TANZANIA Continental TOTAL
Africa CONTINENTAL
Other AFRICA
Kibali Iduapriem Obuasi Siguiri Morila Sadiola Yatela Navachab Geita
Total cash costs
Total cash costs
per financial
statements - 43 75 74 - - - 12 73 - 277
Adjusted for
non-controlling
interests,
non-gold
producing
companies and
other(1) - - - (11) - - - - - - (11)
Associates and
equity
accounted joint
ventures' share
of total cash
costs(2) 29 - - - 11 22 5 - - 1 68
Total cash costs
adjusted for
non-controlling
interests and
non-gold
producing
companies 29 43 75 63 11 22 5 12 73 1 334
Retrenchment
costs - - - - - - - - - - -
Rehabilitation
and other
non-cash costs - 1 1 3 - - - - 1 1 7
Amortisation of
tangible assets - 7 4 8 - - - - 16 - 35
Amortisation of
intangible
assets - - - - - - - - - 1 1
Adjusted for
non-controlling
interests,
non-gold
producing
companies(1) - - - (2) - - - - - - (2)
Associates and
equity
accounted joint
ventures' share
of total cash
costs(2) 18 - - - 3 7 3 - - (1) 30
Total cash costs
adjusted for
non-controlling
interests and
non-gold
producing
companies 47 51 80 72 14 29 8 12 90 2 405
Gold produced -
oz (000) (3) 41 47 64 80 10 23 2 17 110 - 395
Total cash costs
per unit - $/oz
(4) 717 911 1,175 777 1,137 957 1,931 733 667 - 846
Total production
costs per unit -
$/oz(4) 1,149 1,077 1,250 898 1,427 1,246 3,027 733 823 - 1,024
For the three months ended 30 June 2014
Operations in Australia, United States of America, Argentina and Brazil
(in $ millions,
except as
otherwise noted)
UNITED
Australia STATES ARGENTINA BRAZIL
OF
TOTAL AMERICA Americas TOTAL
AUSTRALIA other AMERICAS
Sunrise Australia Cripple Cerro AngloGold Serra
Dam Tropicana other Creek & Vanguardia Ashanti Grande
Victor Mineracao
All-in sustaining
costs
Cost of sales per
financial
statements 90 72 5 167 59 51 89 39 (1) 237
Amortisation of
tangible and
intangible
assets (12) (25) (2) (39) - (8) (25) (11) - (44)
Adjusted for
decoissioning
amortisation - 1 - 1 - - - - - -
Corporate
administration
and marketing
related to
current
operations - - (1) (1) - - - - - -
Sustaining
exploration and
study costs - 1 1 2 - - 2 - 3 5
Total
sustaining
capital
expenditure 10 14 - 24 6 14 31 10 - 61
All-in sustaining
costs 88 63 3 154 65 57 97 38 2 259
Adjusted for
non-controlling
interests and
non -gold
producing
companies(1) - - - - - (4) - - (3) (7)
All-in sustaining
costs adjusted
for
non-controlling
interests and
non-gold
producing
companies 88 63 3 154 65 53 97 38 (1) 252
All-in sustaining
costs adjusted
for
non-controlling
interests,
non-gold
producing
companies and
stockpile
write-offs 88 63 3 154 65 53 97 38 (1) 252
All-in sustaining
costs 88 63 3 154 65 57 97 38 2 259
Non-sustaining
Project capex - - - - 37 - - - - 37
Non-sustaining
exploration and
study costs - - 2 2 - - - - 17 17
Corporate and
social
responsibility
costs not
related to
current
operations - - - - - - 4 - - 4
All-in costs 88 63 5 156 102 57 101 38 19 317
Adjusted for
non-controlling
interests and
non -gold
producing
companies(1) - - - - - (4) - - - (4)
All-in sustaining
costs adjusted
for
non-controlling
interests and
non-gold
producing
companies 88 63 5 156 102 53 101 38 19 313
All-in sustaining
costs adjusted
for
non-controlling
interests,
non-gold
producing
companies and
stockpile
write-offs 88 63 5 156 102 53 101 38 19 313
Gold sold - oz
(000)(3) 57 90 - 147 53 57 93 32 - 234
All-in sustaining
cost (excluding
stockpile
write-offs) per
unit - $/oz(4) 1,527 689 - 1,048 1,221 935 1,043 1,212 - 1,077
All-in cost per
unit (excluding
stockpile
write-offs) - $/
oz(4) 1,527 689 - 1,063 1,913 936 1,088 1,212 - 1,335
For the three months ended 30 June 2014
Operations in Australia, United States of America, Argentina and Brazil
(in $ millions,
except as
otherwise noted)
UNITED
AUSTRALIA STATES ARGENTINA BRAZIL
OF
TOTAL AMERICA Americas TOTAL
AUSTRALIA other AMERICAS
Sunrise Australia Cripple Cerro AngloGold Serra
Dam Tropicana other Creek & Vanguardia Ashanti Grande
Victor Mineracao
Total cash costs
Total cash costs
per financial
statements 81 46 5 132 54 46 63 27 (1) 189
Adjusted for
non-controlling
interests,
non-gold
producing
companies and
other(1) - - - - (10) (3) - - - (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 81 46 5 132 44 43 63 27 (1) 176
Retrenchment
costs - - - - - - - - - -
Rehabilitation
and other
non-cash costs 1 5 - 6 3 1 (2) - 1 3
Amortisation of
tangible assets 12 25 2 39 - 8 23 11 - 42
Amortisation of
intangible
assets - - - - - - 1 - 1 2
Adjusted for
non-controlling
interests,
non-gold
producing
companies(1) - - - 11 (1) - - 1 11
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 94 76 7 177 58 51 85 38 2 234
Gold produced -
oz (000) (3) 62 93 - 155 49 62 88 30 - 229
Total cash costs
per unit - $/oz 899
(4) 1,308 498 - 850 (6) 682 717 879 - 765
Total production
costs per unit -
$/oz(4) 1,523 819 - 1,137 1,205 822 984 1,238 - 1,018
For the three months ended 31 March 2014
Operations in South
Africa
(in $ millions,
except as otherwise
noted)
Great Moab Tau Surface South Total South
Noligwa Kopanang Khotsong Mponeng Tona operations Africa Africa Corporate
other (Operations)
All-in sustaining
costs
Cost of sales per
financial
statements 22 53 49 74 58 56 - 312 1
Amortisation of
tangible and
intangible
assets (2) (20) (12) (17) (17) (5) 1 (72) (3)
Corporate
administration
and marketing
related to
current
operations - - - - - - - - 23
Associates and
equity
accounted joint
ventures' share
of costs(2) - - - - - - - - (1)
Total
sustaining
capital
expenditure 1 5 7 14 6 9 - 42 -
All-in sustaining
costs 21 38 44 71 47 60 1 282 20
Adjusted for
non-controlling
interests and
non -gold
producing
companies(1) - - - - - - - - 3
All-in sustaining
costs adjusted for
non-controlling
interests and
non-gold producing
companies 21 38 44 71 47 60 1 282 23
All-in sustaining
costs adjusted for
non-controlling
interests, non-gold
producing companies
and stockpile
write-offs 21 38 44 71 47 60 1 282 23
All-in sustaining
costs 21 38 44 71 47 60 1 282 20
Non-sustaining
Project capex - - - 8 - - 1 9 -
Technology
improvements - - - - - - 4 4 -
Non-sustaining
exploration and
study costs - - - - - - - - 1
Corporate and
social
responsibility
costs not
related to
current
operations - - - - - - - - 2
All-in costs 21 38 44 79 47 60 6 295 23
Adjusted for
non-controlling
interests and
non -gold
producing
companies(1) - - - - - - - - 2
All-in sustaining
costs adjusted for
non-controlling
interests and
non-gold producing
companies 21 38 44 79 47 60 6 295 25
All-in sustaining
costs adjusted for
non-controlling
interests, non-gold
producing companies
and stockpile
write-offs 21 38 44 79 47 60 6 295 25
Gold sold - oz
(000)(3) 17 29 55 76 52 60 - 290 -
All-in sustaining
cost (excluding
stockpile
write-offs) per
unit - $/oz(4) 1,200 1,320 802 930 916 1,000 - 975 -
All-in cost per
unit (excluding
stockpile
write-offs) - $/oz
(4) 1,200 1,320 805 1,040 916 1,000 - 1,017 -
(1) Adjusting for non-controlling interest of items included in calculation, to
disclose the attributable portions only. Other consists of heap leach
inventory.
(2) 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.
(3) Attributable portion.
(4) In addition to the operational performances of the mines, all-in sustaining
cost per ounce, all-in 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 and
all-in 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.
(5) Corporate includes non-gold producing subsidiaries.
(6) Total cash costs per ounce calculation includes heap-leach inventory change.
For the three months ended 31 March 2014
Operations in
South Africa
(in $ millions,
except as
otherwise noted)
Great Moab Surface South Total South Corporate
Noligwa Kopanang Khotsong Mponeng TauTona operations Africa Africa (5)
other (Operations)
Total cash costs
Total cash costs
per financial
statements 19 32 35 54 40 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 19 32 35 54 40 50 1 231 -
Retrenchment
costs - 1 1 2 1 - - 5 -
Rehabilitation
and other
non-cash costs - 1 1 1 1 1 - 5 (2)
Amortisation of
tangible assets 1 19 11 16 16 5 (1) 67 1
Amortisation of
intangible
assets - - 1 1 1 1 1 5 1
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 20 53 49 74 59 57 1 313 1
Gold produced -
oz (000) (3) 17 29 55 76 52 60 - 290 -
Total cash costs
per unit - $/oz
(4) 1,123 1,074 646 709 774 836 - 797 -
Total production
costs per unit -
$/oz(4) 1,258 1,802 888 974 1,125 934 - 1,077 -
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 NAMIBIA TANZANIA Continental TOTAL
Africa CONTINENTAL
other AFRICA
Kibali Iduapriem Obuasi Siguiri Morila Sadiola Yatela Navachab Geita
All-in sustaining
costs
Cost of sales per
financial
statements - 52 71 78 - - - 14 109 1 325
Amortisation of
tangible and
intangible
assets - (5) (4) (7) - - - - (18) (1) (35)
Adjusted for
decoissioning
amortisation - - - 1 - - - - - - 1
Corporate
administration
and marketing
related to
current
operations - - - - - - - - - 1 1
Associates and
equity
accounted joint
ventures' share
of costs(2) 28 - - - 11 23 7 - - - 69
Sustaining
exploration and
study costs - - - 1 - - - - - - 1
Total
sustaining
capital
expenditure 2 4 14 9 4 1 - - 36 - 70
All-in sustaining
costs 30 51 81 82 15 24 7 14 127 1 432
Adjusted for
non-controlling
interests and
non -gold
producing
companies(1) - - - (12) - - - - - - (12)
All-in sustaining
costs adjusted
for
non-controlling
interests and
non-gold
producing
companies 30 51 81 70 15 24 7 14 127 1 420
All-in sustaining
costs adjusted
for
non-controlling
interests,
non-gold
producing
companies and
stockpile
write-offs 30 51 81 70 15 24 7 14 127 1 420
All-in sustaining
costs 30 51 81 82 15 24 7 14 127 1 432
Non-sustaining
Project capex 46 - 11 - - - - - - - 57
Non-sustaining
exploration and
study costs - - - 1 - - - - - 1 2
All-in costs 76 51 92 83 15 24 7 14 127 2 491
Adjusted for
non-controlling
interests and
non -gold
producing
companies(1) - - - (12) - - - - - - (12)
All-in sustaining
costs adjusted
for
non-controlling
interests and
non-gold
producing
companies 76 51 92 71 15 24 7 14 127 2 479
All-in sustaining
costs adjusted
for
non-controlling
interests,
non-gold
producing
companies and
stockpile
write-offs 76 51 92 71 15 24 7 14 127 2 479
Gold sold - oz
(000)(3) 51 57 53 71 10 17 4 17 122 - 401
All-in sustaining
cost (excluding
stockpile
write-offs) per
unit - $/oz(4) 572 898 1,530 961 1,598 1,404 2,062 785 1,048 - 1,042
All-in cost per
unit (excluding
stockpile
write-offs) - $/
oz(4) 1,495 898 1,741 978 1,598 1,404 2,062 785 1,048 - 1,189
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 NAMIBIA TANZANIA Continental TOTAL
Africa CONTINENTAL
Other AFRICA
Kibali Iduapriem Obuasi Siguiri Morila Sadiola Yatela Navachab Geita
Total cash costs
Total cash costs
per financial
statements - 32 66 66 - - - 13 67 (1) 243
Adjusted for
non-controlling
interests,
non-gold
producing
companies and
other(1) - - - (10) - - - - - - (10)
Associates and
equity
accounted joint
ventures' share
of total cash
costs(2) 28 - - - 11 24 6 - - - 69
Total cash costs
adjusted for
non-controlling
interests and
non-gold
producing
companies 28 32 66 56 11 24 6 13 67 (1) 302
Retrenchment
costs - - - - - - - - 1 - 1
Rehabilitation
and other
non-cash costs - 1 2 1 - - - - 3 - 7
Amortisation of
tangible assets - 5 4 7 - - - - 18 1 35
Amortisation of
intangible
assets - - - - - - - - - 1 1
Adjusted for
non-controlling
interests,
non-gold
producing
companies(1) - - - (1) - - - - - - (1)
Associates and
equity
accounted joint
ventures' share
of total cash
costs(2) 14 - - - 1 6 - - - - 21
Total cash costs
adjusted for
non-controlling
interests and
non-gold
producing
companies 42 38 72 63 12 30 6 13 89 1 366
Gold produced -
oz (000) (3) 51 45 53 70 10 19 4 16 106 - 374
Total cash costs
per unit - $/oz
(4) 538 716 1,234 800 1,099 1,262 1,804 771 631 - 808
Total production
costs per unit -
$/oz(4) 806 857 1,346 907 1,215 1,591 1,889 780 832 - 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 BRAZIL
OF
TOTAL AMERICA Americas TOTAL
AUSTRALIA other AMERICAS
Sunrise Australia Cripple Cerro AngloGold Serra
Dam Tropicana other Creek & Vanguardia Ashanti Grande
Victor Mineracao
All-in sustaining
costs
Cost of sales per
financial
statements 89 62 6 157 43 56 81 37 - 217
Amortisation of
tangible and
intangible
assets (8) (22) - (30) - (8) (26) (10) - (44)
Adjusted for
decoissioning
amortisation - 1 - 1 - - - - - -
Corporate
administration
and marketing
related to
current
operations - - 1 1 - - - - - -
Sustaining
exploration and
study costs - - 2 2 - - 2 1 4 7
Total
sustaining
capital
expenditure 9 18 - 27 4 7 17 7 - 35
All-in sustaining
costs 90 59 9 158 47 55 74 35 4 215
Adjusted for
non-controlling
interests and
non -gold
producing
companies(1) - - - - - (4) - - (4) (8)
All-in sustaining
costs adjusted
for
non-controlling
interests and
non-gold
producing
companies 90 59 9 158 47 51 74 35 - 207
All-in sustaining
costs adjusted
for
non-controlling
interests,
non-gold
producing
companies and
stockpile
write-offs 90 59 9 158 47 51 74 35 - 207
All-in sustaining
costs 90 59 9 158 47 55 74 35 4 215
Non-sustaining
Project capex - - - - 34 - - - - 34
Non-sustaining
exploration and
study costs - - 2 2 - - - - 16 16
Corporate and
social
responsibility
costs not
related to
current
operations - - - - - - 2 1 - 3
All-in costs 90 59 11 160 81 55 76 36 20 268
Adjusted for
non-controlling
interests and
non -gold
producing
companies(1) - - - - - (4) - - - (4)
All-in sustaining
costs adjusted
for
non-controlling
interests and
non-gold
producing
companies 90 59 11 160 81 51 76 36 20 264
All-in sustaining
costs adjusted
for
non-controlling
interests,
non-gold
producing
companies and
stockpile
write-offs 90 59 11 160 81 51 76 36 20 264
Gold sold - oz
(000)(3) 83 86 - 168 47 65 92 34 - 237
All-in sustaining
cost (excluding
stockpile
write-offs) per
unit - $/oz(4) 1,095 694 - 929 1,015 800 805 1,027 - 879
All-in cost per
unit (excluding
stockpile
write-offs) - $/
oz(4) 1,095 694 - 938 1,748 801 834 1,046 - 1,119
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 BRAZIL
OF
TOTAL AMERICA Americas TOTAL
AUSTRALIA other AMERICAS
Sunrise Australia Cripple Cerro AngloGold Serra
Dam Tropicana other Creek & Vanguardia Ashanti Grande
Victor Mineracao
Total cash costs
Total cash costs
per financial
statements 75 42 4 121 60 41 58 25 - 184
Adjusted for
non-controlling
interests,
non-gold
producing
companies and
other(1) - - - - (23) (3) - - - (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 75 42 4 121 37 38 58 25 - 158
Retrenchment
costs - - - - - - - - - -
Rehabilitation
and other
non-cash costs - - 1 1 8 2 - - 1 11
Amortisation of
tangible assets 8 22 - 30 - 8 24 10 - 42
Amortisation of
intangible
assets - - - - - - 1 - 1 2
Adjusted for
non-controlling
interests,
non-gold
producing
companies(1) - - - (2) (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 83 64 5 152 43 47 83 35 2 210
Gold produced -
oz (000) (3) 71 84 - 155 52 58 94 32 - 236
Total cash costs
per unit - $/oz 699
(4) 1,066 495 - 779 (6) 644 619 799 - 668
Total production
costs per unit -
$/oz(4) 1,180 751 - 979 826 804 895 1,134 - 890
For the three months ended 30 June 2013
Operations in
South Africa
(in $ millions,
except as
otherwise noted)
Great Moab Tau Surface South Total South
Noligwa Kopanang Khotsong Mponeng Tona operations Africa Africa Corporate
other (Operations)
All-in sustaining
costs
Cost of sales per
financial
statements 24 53 65 84 65 51 - 342 1
Amortisation
of tangible
and intangible
assets (2) (12) (19) (21) (13) 6 1 (60) (2)
Adjusted for
decoissioning
amortisation - - - - - (1) 1 - (1)
Inventory
writedown to
net realisable
value and
other
stockpile
adjustments - - - - - - 1 1 -
Corporate
administration
and marketing
related to
current
operations - - - - - - 1 1 48
Associates and
equity
accounted
joint
ventures'
share of costs
(2) - - - - - - - - (1)
Sustaining
exploration
and study
costs - - - - - - - - (1)
Total
sustaining
capital
expenditure 3 16 23 23 15 4 1 85 -
All-in sustaining
costs 25 57 69 86 67 60 5 369 44
All-in sustaining
costs adjusted for
non-controlling
interests and
non-gold producing
companies 25 57 69 86 67 60 5 369 44
Adjusted for
stockpile
write-offs - - - - - - (1) (1) -
All-in sustaining
costs adjusted for
non-controlling
interests,
non-gold producing
companies and
stockpile
write-offs 25 57 69 86 67 60 4 368 44
All-in sustaining
costs 25 57 69 86 67 60 5 369 44
Non-sustaining
Project capex - 1 14 21 1 2 (1) 38 (1)
Technology
improvements - - - - - - 2 2 -
Non-sustaining
exploration
and study
costs - - - - - - - - 4
Corporate and
social
responsibility
costs not
related to
current
operations - - - - - - - - 8
All-in costs 25 58 83 107 68 62 6 409 55
All-in sustaining
costs adjusted for
non-controlling
interests and
non-gold producing
companies 25 58 83 107 68 62 6 409 55
Adjusted for
stockpile
write-offs - - - - - - (1) (1) -
All-in sustaining
costs adjusted for
non-controlling
interests,
non-gold producing
companies and
stockpile
write-offs 25 58 83 107 68 62 5 408 55
Gold sold - oz
(000)(3) 21 46 42 78 54 61 - 303 -
All-in sustaining
cost (excluding
stockpile
write-offs) per
unit - $/oz(4) 1,193 1,226 1,641 1,098 1,244 1,009 - 1,213 -
All-in cost per
unit (excluding
stockpile
write-offs) - $/oz
(4) 1,193 1,237 1,970 1,365 1,253 1,009 - 1,342 -
(1) Adjusting for non-controlling interest of items included in calculation, to
disclose the attributable portions only. Other consists of heap leach
inventory.
(2) 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.
(3) Attributable portion.
(4) In addition to the operational performances of the mines, all-in sustaining
cost per ounce, all-in 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 and
all-in 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.
(5) Corporate includes non-gold producing subsidiaries.
(6) Total cash costs per ounce calculation includes heap-leach inventory change.
For the three months ended 30 June 2013
Operations in
South Africa
(in $ millions,
except as
otherwise noted)
Great Moab Surface South Total South Corporate
Noligwa Kopanang Khotsong Mponeng TauTona operations Africa Africa (5)
other (Operations)
Total cash costs
Total cash costs
per financial
statements 21 41 43 61 51 56 - 273 (2)
Adjusted for
non-controlling
interests,
non-gold
producing
companies and
other(1) - - - - - - - - 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 21 41 43 61 51 56 - 273 (1)
Retrenchment
costs - 1 1 - 1 - - 3 -
Rehabilitation
and other
non-cash costs - 1 2 3 2 2 (1) 9 -
Amortisation of
tangible assets 2 10 17 20 12 (6) - 55 2
Amortisation of
intangible
assets - 1 1 2 1 - 1 6 1
Adjusted for
non-controlling
interests,
non-gold
producing
companies(1) - - - - - - - - (1)
Total cash costs
adjusted for
non-controlling
interests and
non-gold
producing
companies 23 54 64 86 67 52 - 346 1
Gold produced -
oz (000) (3) 21 47 42 80 56 62 - 307 -
Total cash costs
per unit - $/oz
(4) 992 869 1,039 766 919 903 - 890 -
Total production
costs per unit -
$/oz(4) 1,133 1,151 1,549 1,073 1,201 824 - 1,127 -
For the three months ended 30 June 2013
Operations in DRC, Ghana, Guinea, Mali, Namibia and Tanzania
(in $ millions,
except as
otherwise noted)
DRC GHANA GUINEA MALI NAMIBIA TANZANIA Continental TOTAL
Africa CONTINENTAL
other AFRICA
Kibali Iduapriem Obuasi Siguiri Morila Sadiola Yatela Navachab Geita
All-in sustaining
costs
Cost of sales per
financial
statements - 56 108 67 - - - 13 77 11 332
Amortisation of
tangible and
intangible
assets - (8) (24) (7) - - - - (34) (6) (79)
Adjusted for
decoissioning
amortisation - - - 1 - - - - - 1 2
Inventory
writedown to
net realisable
value and other
stockpile
adjustments - 83 4 - - - - 24 66 - 177
Corporate
administration
and marketing
related to
current
operations - - - - - - - - - 1 1
Associates and
equity
accounted joint
ventures' share
of costs(2) 1 - - - 13 22 8 - - 1 45
Sustaining
exploration and
study costs - 1 2 5 - 1 - - 6 - 15
Total
sustaining
capital
expenditure - 6 39 5 2 2 - 1 29 - 84
All-in sustaining
costs 1 138 129 71 15 25 8 38 144 8 577
Adjusted for
non-controlling
interests and
non -gold
producing
companies(1) - - - (12) - - - - - (0) (12)
All-in sustaining
costs adjusted
for
non-controlling
interests and
non-gold
producing
companies 1 138 129 59 15 25 8 38 144 8 565
Adjusted for
stockpile
write-offs - (83) (4) - - - - (24) (66) - (177)
All-in sustaining
costs adjusted
for
non-controlling
interests,
non-gold
producing
companies and
stockpile
write-offs 1 55 125 59 15 25 8 14 78 8 388
All-in sustaining
costs 1 138 129 71 15 25 8 38 144 8 577
Non-sustaining
Project capex 105 2 8 - - 2 1 - - 19 137
Non-sustaining
exploration and
study costs - - - 2 - - - - - 6 8
All-in costs 106 140 137 73 15 27 9 38 144 33 722
Adjusted for
non-controlling
interests and
non -gold
producing
companies(1) - - - (15) - - - - - (0) (15)
All-in sustaining
costs adjusted
for
non-controlling
interests and
non-gold
producing
companies 106 140 137 58 15 27 9 38 144 33 707
Adjusted for
stockpile
write-offs - (83) (4) - - - - (24) (66) - (177)
All-in sustaining
costs adjusted
for
non-controlling
interests,
non-gold
producing
companies and
stockpile
write-offs 106 57 133 58 15 27 9 14 78 33 530
Gold sold - oz
(000)(3) - 50 53 59 17 23 6 13 102 - 323
All-in sustaining
cost (excluding
stockpile
write-offs) per
unit - $/oz(4) - 1,106 2,351 1,008 856 1,080 1,540 1,064 764 - 1,205
All-in cost per
unit (excluding
stockpile
write-offs) - $/
oz(4) - 1,137 2,495 1,040 856 1,178 1,658 1,064 766 - 1,642
For the three months ended 30 June 2013
Operations in DRC, Ghana, Guinea, Mali, Namibia and Tanzania
(in $ millions,
except as
otherwise noted)
DRC GHANA GUINEA MALI NAMIBIA TANZANIA Continental TOTAL
Africa CONTINENTAL
Other AFRICA
Kibali Iduapriem Obuasi Siguiri Morila Sadiola Yatela Navachab Geita
Total cash costs
Total cash costs
per financial
statements - 46 90 62 - - - 13 56 1 268
Adjusted for
non-controlling
interests,
non-gold
producing
companies and
other(1) - - - (9) - - - - - - (9)
Associates and
equity
accounted joint
ventures' share
of total cash
costs(2) 1 - - - 12 23 8 - - - 44
Total cash costs
adjusted for
non-controlling
interests and
non-gold
producing
companies 1 46 90 53 12 23 8 13 56 1 303
Retrenchment
costs - - - - - - - - - - -
Rehabilitation
and other
non-cash costs - 2 (2) - - - - - (1) 4 3
Amortisation of
tangible assets - 8 24 7 - - - 1 35 1 76
Amortisation of
intangible
assets - - - - - - - - - 1 1
Adjusted for
non-controlling
interests,
non-gold
producing
companies(1) - - - (1) - - - - - - (1)
Associates and
equity
accounted joint
ventures' share
of total cash
costs(2) - - - - - - 1 - - - 1
Total cash costs
adjusted for
non-controlling
interests and
non-gold
producing
companies 1 56 112 59 12 23 9 14 90 7 383
Gold produced -
oz (000) (3) - 51 58 62 17 23 6 13 113 - 343
Total cash costs
per unit - $/oz
(4) - 911 1,560 850 728 1,003 1,451 976 514 - 883
Total production
costs per unit -
$/oz(4) - 1,106 2,002 941 757 1,003 1,634 1,077 812 - 1,119
For the three months ended 30 June 2013
Operations in Australia, United States of America, Argentina and Brazil
(in $ millions,
except as
otherwise noted)
UNITED
Australia STATES ARGENTINA BRAZIL
OF
TOTAL AMERICA Americas TOTAL
AUSTRALIA other AMERICAS
Sunrise Australia Cripple Cerro AngloGold Serra
Dam Tropicana other Creek & Vanguardia Ashanti Grande
Victor Mineracao
All-in sustaining
costs
Cost of sales per
financial
statements 95 - 6 101 55 53 93 35 - 236
Amortisation of
tangible and
intangible
assets (13) - - (13) (11) (11) (29) (10) 1 (60)
Corporate
administration
and marketing
related to
current
operations - - - - 5 - 2 - (1) 6
Sustaining
exploration and
study costs 4 1 3 8 1 3 5 2 - 11
Total
sustaining
capital
expenditure 10 12 3 25 4 23 36 9 5 77
All-in sustaining
costs 96 13 12 121 54 68 107 36 5 270
Adjusted for
non-controlling
interests and
non -gold
producing
companies(1) - - - - - (5) - - - (5)
All-in sustaining
costs adjusted
for
non-controlling
interests and
non-gold
producing
companies 96 13 12 121 54 63 107 36 5 265
All-in sustaining
costs adjusted
for
non-controlling
interests,
non-gold
producing
companies and
stockpile
write-offs 96 13 12 121 54 63 107 36 5 265
All-in sustaining
costs 96 13 12 121 54 68 107 36 5 270
Non-sustaining
Project capex - 75 - 75 27 5 2 1 1 36
Non-sustaining
exploration and
study costs - - 3 3 - - 2 - 34 36
Corporate and
social
responsibility
costs not
related to
current
operations - - - - - - 3 - - 3
All-in costs 96 88 15 199 81 73 114 37 40 345
Adjusted for
non-controlling
interests and
non -gold
producing
companies(1) - - - - - (6) - - - (6)
All-in sustaining
costs adjusted
for
non-controlling
interests and
non-gold
producing
companies 96 88 15 199 81 67 114 37 40 339
All-in sustaining
costs adjusted
for
non-controlling
interests,
non-gold
producing
companies and
stockpile
write-offs 96 88 15 199 81 67 114 37 40 339
Gold sold - oz
(000)(3) 50 - - 50 61 62 76 37 - 236
All-in sustaining
cost (excluding
stockpile
write-offs) per
unit - $/oz(4) 1,938 - - 2,424 884 1,021 1,389 991 - 1,123
All-in cost per
unit (excluding
stockpile
write-offs) - $/
oz(4) 1,938 - - 3,972 1,319 1,103 1,484 1,024 - 1,439
For the three months ended 30 June 2013
Operations in Australia, United States of America, Argentina and Brazil
(in $ millions,
except as
otherwise noted)
UNITED
AUSTRALIA STATES ARGENTINA BRAZIL
OF
TOTAL AMERICA Americas TOTAL
AUSTRALIA other AMERICAS
Sunrise Australia Cripple Cerro AngloGold Serra
Dam Tropicana other Creek & Vanguardia Ashanti Grande
Victor Mineracao
Total cash costs
Total cash costs
per financial
statements 86 - 6 92 61 41 65 25 1 193
Adjusted for
non-controlling
interests,
non-gold
producing
companies and
other(1) - - - - (17) (3) - - - (20)
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 86 - 6 92 44 38 65 25 1 173
Retrenchment
costs - - - - - - 1 - - 1
Rehabilitation
and other
non-cash costs (2) - - (2) 2 2 (3) - 1 2
Amortisation of
tangible assets 13 - - 13 11 11 29 10 (1) 60
Amortisation of
intangible
assets - - - - - - - - - -
Adjusted for
non-controlling
interests,
non-gold
producing
companies(1) - - - (1) (1) - - - (2)
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 97 - 6 103 56 50 92 35 1 234
Gold produced -
oz (000) (3) 50 - - 50 60 62 76 37 - 235
Total cash costs
per unit - $/oz 726
(4) 1,713 - - 1,829 (6) 615 858 675 - 733
Total production
costs per unit -
$/oz(4) 1,924 - - 2,051 907 810 1,215 935 - 988
For the six months
ended 30 June 2014
Operations in South
Africa
(in $ millions,
except as otherwise
noted)
Great Moab Tau Surface South Total South
Noligwa Kopanang Khotsong Mponeng Tona operations Africa Africa Corporate
other (Operations)
All-in sustaining
costs
Cost of sales per
financial
statements 46 104 102 154 122 117 - 645 5
Amortisation of
tangible and
intangible
assets (4) (31) (25) (36) (31) (13) 1 (139) (4)
Corporate
administration
and marketing
related to
current
operations - - - - - - 1 1 42
Sustaining
exploration and
study costs - - - - - - - - 1
Total
sustaining
capital
expenditure 4 12 16 31 17 21 1 102 (1)
All-in sustaining
costs 46 85 93 149 108 125 3 609 43
Adjusted for
non-controlling
interests and
non -gold
producing
companies(1) - - - - - - - - 3
All-in sustaining
costs adjusted for
non-controlling
interests and
non-gold producing
companies 46 85 93 149 108 125 3 609 46
All-in sustaining
costs adjusted for
non-controlling
interests, non-gold
producing companies
and stockpile
write-offs 46 85 93 149 108 125 3 609 46
All-in sustaining
costs 46 85 93 149 108 125 3 609 43
Non-sustaining
Project capex - - 1 16 - - - 17 -
Technology
improvements - - - - - - 9 9 -
Non-sustaining
exploration and
study costs - - - - - - - - 2
Corporate and
social
responsibility
costs not
related to
current
operations - - - - - - - - 5
All-in costs 46 85 94 165 108 125 12 635 50
Adjusted for
non-controlling
interests and
non -gold
producing
companies(1) - - 3
All-in sustaining
costs adjusted for
non-controlling
interests and
non-gold producing
companies 46 85 94 165 108 125 12 635 53
All-in sustaining
costs adjusted for
non-controlling
interests, non-gold
producing companies
and stockpile
write-offs 46 85 94 165 108 125 12 635 53
Gold sold - oz
(000)(3) 38 68 112 161 105 112 - 596 -
All-in sustaining
cost (excluding
stockpile
write-offs) per
unit - $/oz(4) 1,203 1,248 842 929 1,026 1,119 - 1,020 -
All-in cost per
unit (excluding
stockpile
write-offs) - $/oz
(4) 1,203 1,248 849 1,029 1,026 1,119 - 1,064 -
(1) Adjusting for non-controlling interest of items included in calculation, to
disclose the attributable portions only. Other consists of heap leach
inventory.
(2) 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.
(3) Attributable portion.
(4) In addition to the operational performances of the mines, all-in sustaining
cost per ounce, all-in 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 and
all-in 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.
(5) Corporate includes non-gold producing subsidiaries.
(6) Total cash costs per ounce calculation includes heap-leach inventory change.
For the six
months ended 30
June 2014
Operations in
South Africa
(in $ millions,
except as
otherwise noted)
Great Moab Surface South Total South Corporate
Noligwa Kopanang Khotsong Mponeng TauTona operations Africa Africa (5)
other (Operations)
Total cash costs
Total cash costs
per financial
statements 42 72 77 117 91 106 1 506 -
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 42 72 77 117 91 106 1 506 3
Retrenchment
costs 1 2 1 3 1 - (1) 7 -
Rehabilitation
and other
non-cash costs 1 1 1 2 1 1 - 7 -
Amortisation of
tangible assets 3 30 23 33 29 13 (1) 130 3
Amortisation of
intangible
assets 1 1 2 3 2 1 (1) 9 2
Adjusted for
non-controlling
interests,
non-gold
producing
companies(1) - - - - - - - - (1)
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 48 106 104 158 124 121 (2) 659 8
Gold produced -
oz (000) (3) 39 69 114 165 108 115 - 609 -
Total cash costs
per unit - $/oz
(4) 1,088 1,044 678 711 851 922 - 831 -
Total production
costs per unit -
$/oz(4) 1,218 1,530 913 956 1,161 1,047 - 1,084 -
For the six months ended 30 June 2014
Operations in DRC, Ghana, Guinea, Mali, Namibia and Tanzania
(in $ millions,
except as
otherwise noted)
DRC GHANA GUINEA MALI NAMIBIA TANZANIA Continental TOTAL
Africa CONTINENTAL
other AFRICA
Kibali Iduapriem Obuasi Siguiri Morila Sadiola Yatela Navachab Geita
All-in sustaining
costs
Cost of sales per
financial
statements - 102 151 169 - - - 26 199 1 648
Amortisation of
tangible and
intangible
assets - (12) (8) (16) - - - - (34) (1) (71)
Adjusted for
decoissioning
amortisation - - - 2 - - - - 1 - 3
Corporate
administration
and marketing
related to
current
operations - - - - - - - - - 1 1
Associates and
equity
accounted joint
ventures' share
of costs(2) 55 - - - 23 49 14 - - - 141
Sustaining
exploration and
study costs - - - 1 - - - - - - 1
Total
sustaining
capital
expenditure 2 7 29 18 5 3 - 1 65 - 130
All-in sustaining
costs 57 97 172 174 28 52 14 27 231 - 853
Adjusted for
non-controlling
interests and
non -gold
producing
companies(1) - - - (26) - - - - - - (26)
All-in sustaining
costs adjusted
for
non-controlling
interests and
non-gold
producing
companies 57 97 172 148 28 52 14 27 231 - 827
Adjusted for
stockpile
write-offs - - - - - - - (2) (7) - (9)
All-in sustaining
costs adjusted
for
non-controlling
interests,
non-gold
producing
companies and
stockpile
write-offs 57 97 172 148 28 52 14 25 224 - 818
All-in sustaining
costs 57 97 172 174 28 52 14 27 231 - 853
Non-sustaining
Project capex 96 - 23 - - - - - - - 119
Non-sustaining
exploration and
study costs 1 - - 3 - - - - - - 4
All-in costs 154 97 195 177 28 52 14 27 231 - 976
Adjusted for
non-controlling
interests and
non -gold
producing
companies(1) - - - (27) - - - - - (0) (27)
All-in sustaining
costs adjusted
for
non-controlling
interests and
non-gold
producing
companies 154 97 195 150 28 52 14 27 231 (0) 949
Adjusted for
stockpile
write-offs - - - - - - - (2) (7) - (9)
All-in sustaining
costs adjusted
for
non-controlling
interests,
non-gold
producing
companies and
stockpile
write-offs 154 97 195 150 28 52 14 25 224 (0) 940
Gold sold - oz
(000)(3) 89 103 118 158 20 43 6 34 232 - 802
All-in sustaining
cost (excluding
stockpile
write-offs) per
unit - $/oz(4) 644 943 1,470 937 1,384 1,210 2,389 719 967 - 1,020
All-in cost per
unit (excluding
stockpile
write-offs) - $/
oz(4) 1,733 943 1,666 955 1,384 1,210 2,389 719 967 - 1,173
For the six months ended 30 June 2014
Operations in DRC, Ghana, Guinea, Mali, Namibia and Tanzania
(in $ millions,
except as
otherwise noted)
DRC GHANA GUINEA MALI NAMIBIA TANZANIA Continental TOTAL
Africa CONTINENTAL
Other AFRICA
Kibali Iduapriem Obuasi Siguiri Morila Sadiola Yatela Navachab Geita
Total cash costs
Total cash costs
per financial
statements - 75 141 139 - - - 25 140 - 520
Adjusted for
non-controlling
interests,
non-gold
producing
companies and
other(1) - - - (21) - - - - - - (21)
Associates and
equity
accounted joint
ventures' share
of total cash
costs(2) 57 - - - 22 47 11 - - (1) 136
Total cash costs
adjusted for
non-controlling
interests and
non-gold
producing
companies 57 75 141 118 22 47 11 25 140 (1) 635
Retrenchment
costs - - - - - - - - 1 - 1
Rehabilitation
and other
non-cash costs - 2 3 5 - - - - 4 - 14
Amortisation of
tangible assets - 12 8 16 - - - - 34 (1) 69
Amortisation of
intangible
assets - - - - - - - - - 2 2
Adjusted for
non-controlling
interests,
non-gold
producing
companies(1) - - - (3) - - - - - - (3)
Associates and
equity
accounted joint
ventures' share
of total cash
costs(2) 31 - - - 4 13 3 - - - 51
Total cash costs
adjusted for
non-controlling
interests and
non-gold
producing
companies 88 89 152 136 26 60 14 25 179 - 769
Gold produced -
oz (000) (3) 92 92 117 150 20 43 6 33 216 - 769
Total cash costs
per unit - $/oz
(4) 618 815 1,202 788 1,118 1,094 1,856 752 650 - 827
Total production
costs per unit -
$/oz(4) 960 969 1,294 902 1,322 1,401 2,358 756 827 - 1,001
For the six months ended 30 June 2014
Operations in Australia, United States of America, Argentina and Brazil
(in $ millions,
except as
otherwise noted)
UNITED
Australia STATES ARGENTINA BRAZIL
OF
TOTAL AMERICA Americas TOTAL
AUSTRALIA other AMERICAS
Sunrise Australia Cripple Cerro AngloGold Serra
Dam Tropicana other Creek & Vanguardia Ashanti Grande
Victor Mineracao
All-in sustaining
costs
Cost of sales per
financial
statements 179 134 10 323 102 107 169 76 1 455
Amortisation of
tangible and
intangible
assets (20) (47) (2) (69) (1) (16) (51) (21) - (89)
Adjusted for
decoissioning
amortisation - 2 - 2 - - - - - -
Sustaining
exploration and
study costs - 1 3 4 1 1 4 1 5 12
Total
sustaining
capital
expenditure 19 32 - 51 11 21 48 16 - 96
All-in sustaining
costs 178 122 11 311 113 113 170 72 6 474
Adjusted for
non-controlling
interests and
non -gold
producing
companies(1) - - - - - (8) - - (7) (15)
All-in sustaining
costs adjusted
for
non-controlling
interests and
non-gold
producing
companies 178 122 11 311 113 105 170 72 (1) 459
All-in sustaining
costs adjusted
for
non-controlling
interests,
non-gold
producing
companies and
stockpile
write-offs 178 122 11 311 113 105 170 72 (1) 459
All-in sustaining
costs 178 122 11 311 113 113 170 72 6 474
Non-sustaining
Project capex - - - - 71 - - - - 71
Non-sustaining
exploration and
study costs - - 4 4 - - 1 - 32 33
Corporate and
social
responsibility
costs not
related to
current
operations - - - - - - 6 1 - 7
All-in costs 178 122 15 315 184 113 177 73 38 585
Adjusted for
non-controlling
interests and
non -gold
producing
companies(1) - - - - - (9) - - - (9)
All-in sustaining
costs adjusted
for
non-controlling
interests and
non-gold
producing
companies 178 122 15 315 184 104 177 73 38 576
All-in sustaining
costs adjusted
for
non-controlling
interests,
non-gold
producing
companies and
stockpile
write-offs 178 122 15 315 184 104 177 73 38 576
Gold sold - oz
(000)(3) 140 176 - 316 100 121 185 65 - 471
All-in sustaining
cost (excluding
stockpile
write-offs) per
unit - $/oz(4) 1,272 691 - 985 1,124 863 924 1,116 - 977
All-in cost per
unit (excluding
stockpile
write-offs) - $/
oz(4) 1,272 691 - 996 1,835 864 962 1,127 - 1,226
For the six months ended 30 June 2014
Operations in Australia, United States of America, Argentina and Brazil
(in $ millions,
except as
otherwise noted)
UNITED
AUSTRALIA STATES ARGENTINA BRAZIL
OF
TOTAL AMERICA Americas TOTAL
AUSTRALIA other AMERICAS
Sunrise Australia Cripple Cerro AngloGold Serra
Dam Tropicana other Creek & Vanguardia Ashanti Grande
Victor Mineracao
Total cash costs
Total cash costs
per financial
statements 156 88 9 253 113 86 121 52 - 372
Adjusted for
non-controlling
interests,
non-gold
producing
companies and
other(1) - - - - (33) (6) - - - (39)
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 156 88 9 253 80 80 121 52 - 333
Retrenchment
costs - - - - - - 1 - - 1
Rehabilitation
and other
non-cash costs 1 5 - 6 11 3 (2) - 1 13
Amortisation of
tangible assets 20 47 2 69 - 16 48 21 (1) 84
Amortisation of
intangible
assets - - - - 1 - 3 - - 4
Adjusted for
non-controlling
interests,
non-gold
producing
companies(1) - - - 10 (1) - - (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 177 140 11 328 102 98 171 73 (1) 443
Gold produced -
oz (000) (3) 133 177 - 310 101 121 182 62 - 465
Total cash costs
per unit - $/oz 796
(4) 1,179 496 - 815 (6) 664 667 838 - 716
Total production
costs per unit -
$/oz(4) 1,340 787 - 1,058 1,009 813 938 1,185 - 953
For the six months ended 30 June 2013
Operations in
South Africa
(in $ millions,
except as
otherwise noted)
Great Moab Tau Surface South Total South
Noligwa Kopanang Khotsong Mponeng Tona operations Africa Africa Corporate
other (Operations)
All-in sustaining
costs
Cost of sales per
financial
statements 52 107 125 170 136 105 1 696 5
Amortisation
of tangible
and intangible
assets (4) (23) (36) (43) (24) 2 (1) (129) (3)
Inventory
writedown to
net realisable
value and
other
stockpile
adjustments - - - - - - 1 1 -
Corporate
administration
and marketing
related to
current
operations - - - - - - 3 3 102
Associates and
equity
accounted
joint
ventures'
share of costs
(2) - - - - - - - - 2
Total
sustaining
capital
expenditure 6 28 43 43 29 5 - 154 5
All-in sustaining
costs 54 112 132 170 141 112 4 725 111
All-in sustaining
costs adjusted for
non-controlling
interests and
non-gold producing
companies 54 112 132 170 141 112 4 725 111
Adjusted for
stockpile
write-offs - - - - - - (1) (1) -
All-in sustaining
costs adjusted for
non-controlling
interests,
non-gold producing
companies and
stockpile
write-offs 54 112 132 170 141 112 3 724 111
All-in sustaining
costs 54 112 132 170 141 112 4 725 111
Non-sustaining
Project capex - - 26 40 1 3 - 70 -
Technology
improvements - - - - - - 4 4 -
Non-sustaining
exploration
and study
costs - - - - - - - - 6
Corporate and
social
responsibility
costs not
related to
current
operations - - - - - - - - 12
All-in costs 54 112 158 210 142 115 8 799 129
All-in sustaining
costs adjusted for
non-controlling
interests and
non-gold producing
companies 54 112 158 210 142 115 8 799 129
Adjusted for
stockpile
write-offs - - - - - - (1) (1) -
All-in sustaining
costs adjusted for
non-controlling
interests,
non-gold producing
companies and
stockpile
write-offs 54 112 158 210 142 115 7 798 129
Gold sold - oz
(000)(3) 44 91 82 169 110 120 - 617 -
All-in sustaining
cost (excluding
stockpile
write-offs) per
unit - $/oz(4) 1,218 1,227 1,604 1,007 1,282 922 - 1,170 -
All-in cost per
unit (excluding
stockpile
write-offs) - $/oz
(4) 1,218 1,231 1,923 1,242 1,287 958 - 1,290 -
(1) Adjusting for non-controlling interest of items included in calculation, to
disclose the attributable portions only. Other consists of heap leach
inventory.
(2) 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.
(3) Attributable portion.
(4) In addition to the operational performances of the mines, all-in sustaining
cost per ounce, all-in 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 and
all-in 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.
(5) Corporate includes non-gold producing subsidiaries.
(6) Total cash costs per ounce calculation includes heap-leach inventory change.
For the six months ended 30 June 2013
Operations in
South Africa
(in $ millions,
except as
otherwise noted)
Great Moab Surface South Total South Corporate
Noligwa Kopanang Khotsong Mponeng TauTona operations Africa Africa (5)
other (Operations)
Total cash costs
Total cash costs
per financial
statements 48 85 88 127 112 106 1 567 1
Adjusted for
non-controlling
interests,
non-gold
producing
companies and
other(1) - - - - - - - - (1)
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 48 85 88 127 112 106 1 567 (1)
Retrenchment
costs 1 1 1 1 1 - - 5 (1)
Rehabilitation
and other
non-cash costs - 1 3 4 3 2 - 13 -
Amortisation of
tangible assets 4 21 35 41 23 - (1) 123 3
Amortisation of
intangible
assets 1 1 1 2 1 - - 6 -
Adjusted for
non-controlling
interests,
non-gold
producing
companies(1) - - - - - - - - (2)
Total cash costs
adjusted for
non-controlling
interests and
non-gold
producing
companies 54 109 128 175 140 108 - 714 (1)
Gold produced -
oz (000) (3) 45 94 85 173 113 124 - 634 -
Total cash costs
per unit - $/oz
(4) 1,053 901 1,045 734 993 854 - 893 -
Total production
costs per unit -
$/oz(4) 1,179 1,172 1,522 1,007 1,239 858 - 1,125 -
For the six months ended 30 June 2013
Operations in DRC, Ghana, Guinea, Mali, Namibia and Tanzania
(in $ millions,
except as
otherwise noted)
DRC GHANA GUINEA MALI NAMIBIA TANZANIA Continental TOTAL
Africa CONTINENTAL
other AFRICA
Kibali Iduapriem Obuasi Siguiri Morila Sadiola Yatela Navachab Geita
All-in sustaining
costs
Cost of sales per
financial
statements - 111 231 158 - - - 30 149 13 692
Amortisation of
tangible and
intangible
assets - (15) (47) (13) - - - (6) (63) (4) (148)
Adjusted for
decoissioning
amortisation - - - 1 - - - - - 2 3
Inventory
writedown to
net realisable
value and other
stockpile
adjustments - 83 4 - - - - 24 66 - 177
Corporate
administration
and marketing
related to
current
operations - - - - - - - - - 6 6
Associates and
equity
accounted joint
ventures' share
of costs(2) 3 - - - 25 42 22 - - (3) 89
Sustaining
exploration and
study costs - 2 4 9 - 1 - 1 8 - 25
Total
sustaining
capital
expenditure - 13 86 13 3 5 - 2 59 1 182
All-in sustaining
costs 3 194 278 168 28 48 22 51 219 15 1,026
Adjusted for
non-controlling
interests and
non -gold
producing
companies(1) - - - (25) - - - - - (2) (27)
All-in sustaining
costs adjusted
for
non-controlling
interests and
non-gold
producing
companies 3 194 278 143 28 48 22 51 219 13 999
Adjusted for
stockpile
write-offs - (83) (4) - - - - (24) (66) - (177)
All-in sustaining
costs adjusted
for
non-controlling
interests,
non-gold
producing
companies and
stockpile
write-offs 3 111 274 143 28 48 22 27 153 13 822
All-in sustaining
costs 3 194 278 168 28 48 22 51 219 15 1,026
Non-sustaining
Project capex 185 3 13 2 - 9 1 - 8 26 247
Non-sustaining
exploration and
study costs 1 - - 5 - - - - - 21 27
All-in costs 189 197 291 175 28 57 23 51 227 62 1,300
Adjusted for
non-controlling
interests and
non -gold
producing
companies(1) - - - (26) - - - - - (8) (34)
All-in sustaining
costs adjusted
for
non-controlling
interests and
non-gold
producing
companies 189 197 291 149 28 57 23 51 227 54 1,266
Adjusted for
stockpile
write-offs - (83) (4) - - - - (24) (66) - (177)
All-in sustaining
costs adjusted
for
non-controlling
interests,
non-gold
producing
companies and
stockpile
write-offs 189 114 287 149 28 57 23 27 161 54 1,089
Gold sold - oz
(000)(3) - 94 111 131 32 40 15 27 187 - 638
All-in sustaining
cost (excluding
stockpile
write-offs) per
unit - $/oz(4) - 1,189 2,484 1,098 869 1,183 1,420 1,033 816 - 1,290
All-in cost per
unit (excluding
stockpile
write-offs) - $/
oz(4) - 1,225 2,606 1,145 869 1,400 1,515 1,033 857 - 1,708
For the six months ended 30 June 2013
Operations in DRC, Ghana, Guinea, Mali, Namibia and Tanzania
(in $ millions,
except as
otherwise noted)
DRC GHANA GUINEA MALI NAMIBIA TANZANIA Continental TOTAL
Africa CONTINENTAL
Other AFRICA
Kibali Iduapriem Obuasi Siguiri Morila Sadiola Yatela Navachab Geita
Total cash costs
Total cash costs
per financial
statements - 89 176 135 - - - 25 82 - 507
Adjusted for
non-controlling
interests,
non-gold
producing
companies and
other(1) - - - (20) - - - - - - (20)
Associates and
equity
accounted joint
ventures' share
of total cash
costs(2) 1 - - - 24 45 21 - - - 91
Total cash costs
adjusted for
non-controlling
interests and
non-gold
producing
companies 1 89 176 115 24 45 21 25 82 - 578
Retrenchment
costs - - 2 - - - - - - - 2
Rehabilitation
and other
non-cash costs - 2 1 - - - - - - 5 8
Amortisation of
tangible assets - 15 47 13 - - - 6 63 2 146
Amortisation of
intangible
assets - - - - - - - - - 2 2
Adjusted for
non-controlling
interests,
non-gold
producing
companies(1) - - - (2) - - - - - - (2)
Associates and
equity
accounted joint
ventures' share
of total cash
costs(2) - - - - 2 - 2 - - - 4
Total cash costs
adjusted for
non-controlling
interests and
non-gold
producing
companies 1 106 226 126 26 45 23 31 145 9 738
Gold produced -
oz (000) (3) - 92 107 124 32 43 15 27 179 - 619
Total cash costs
per unit - $/oz
(4) - 973 1,644 924 749 1,049 1,365 936 468 - 932
Total production
costs per unit -
$/oz(4) - 1,163 2,135 1,014 797 1,058 1,470 1,150 822 - 1,190
For the six months ended 30 June 2013
Operations in Australia, United States of America, Argentina and Brazil
(in $ millions,
except as
otherwise noted)
UNITED
Australia STATES ARGENTINA BRAZIL
OF
TOTAL AMERICA Americas TOTAL
AUSTRALIA other AMERICAS
Sunrise Australia Cripple Cerro AngloGold Serra
Dam Tropicana other Creek & Vanguardia Ashanti Grande
Victor Mineracao
All-in sustaining
costs
Cost of sales per
financial
statements 182 - 10 192 99 98 189 67 2 455
Amortisation of
tangible and
intangible
assets (26) - (1) (27) (21) (21) (59) (19) (1) (121)
Corporate
administration
and marketing
related to
current
operations - - - - 8 - 2 - 1 11
Sustaining
exploration and
study costs 12 2 4 18 2 5 9 4 1 21
Total
sustaining
capital
expenditure 29 12 3 44 5 41 57 16 11 130
All-in sustaining
costs 197 14 16 227 93 123 198 68 14 496
Adjusted for
non-controlling
interests and
non -gold
producing
companies(1) - - - - - (9) - - - (9)
All-in sustaining
costs adjusted
for
non-controlling
interests and
non-gold
producing
companies 197 14 16 227 93 114 198 68 14 487
All-in sustaining
costs adjusted
for
non-controlling
interests,
non-gold
producing
companies and
stockpile
write-offs 197 14 16 227 93 114 198 68 14 487
All-in sustaining
costs 197 14 16 227 93 123 198 68 14 496
Non-sustaining
Project capex - 157 - 157 67 7 3 2 1 80
Non-sustaining
exploration and
study costs - - 4 4 - - 4 - 62 66
Corporate and
social
responsibility
costs not
related to
current
operations - - - - - - 4 (4) - -
All-in costs 197 171 20 388 160 130 209 66 77 642
Adjusted for
non-controlling
interests and
non -gold
producing
companies(1) - - - - - (10) - - - (10)
All-in sustaining
costs adjusted
for
non-controlling
interests and
non-gold
producing
companies 197 171 20 388 160 120 209 66 77 632
All-in sustaining
costs adjusted
for
non-controlling
interests,
non-gold
producing
companies and
stockpile
write-offs 197 171 20 388 160 120 209 66 77 632
Gold sold - oz
(000)(3) 108 - - 108 115 116 175 71 - 477
All-in sustaining
cost (excluding
stockpile
write-offs) per
unit - $/oz(4) 1,825 - - 2,119 818 990 1,131 972 - 1,023
All-in cost per
unit (excluding
stockpile
write-offs) - $/
oz(4) 1,825 - - 3,615 1,401 1,041 1,196 949 - 1,328
For the six months ended 30 June 2013
Operations in Australia, United States of America, Argentina and Brazil
(in $ millions,
except as
otherwise noted)
UNITED
AUSTRALIA STATES ARGENTINA BRAZIL
OF
TOTAL AMERICA Americas TOTAL
AUSTRALIA other AMERICAS
Sunrise Australia Cripple Cerro AngloGold Serra
Dam Tropicana other Creek & Vanguardia Ashanti Grande
Victor Mineracao
Total cash costs
Total cash costs
per financial
statements 162 - 9 171 119 76 129 50 1 375
Adjusted for
non-controlling
interests,
non-gold
producing
companies and
other(1) - - - - (40) (6) - - - (46)
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 162 - 9 171 79 70 129 50 1 329
Retrenchment
costs - - - - - - 1 - 1 2
Rehabilitation
and other
non-cash costs (2) - - (2) 3 3 (2) - 1 5
Amortisation of
tangible assets 26 - 1 27 21 21 59 19 - 120
Amortisation of
intangible
assets - - - - - - 1 - - 1
Adjusted for
non-controlling
interests,
non-gold
producing
companies(1) - - - (4) (2) - - - (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 186 - 10 196 99 92 188 69 3 451
Gold produced -
oz (000) (3) 111 - - 111 115 117 168 69 - 469
Total cash costs
per unit - $/oz 687
(4) 1,459 - - 1,541 (6) 600 765 728 - 701
Total production
costs per unit -
$/oz(4) 1,671 - - 1,764 858 797 1,113 1,004 - 957
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^
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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