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ANG - Anglogold Ashanti Limited - Report for the quarter and year ended 31

Release Date: 15/02/2012 09:15
Code(s): ANG
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ANG - Anglogold Ashanti Limited - Report for the quarter and year ended 31 December 2011 Group results for the year ANGLOGOLD ASHANTI LIMITED Registration No. 1944/017354/06 Incorporated in the Republic of South Africa Share codes: ISIN: ZAE000043485 JSE: ANG LSE: AGD NYSE: AU ASX: AGG GhSE (Shares): AGA GhSE (GhDS): AAD JSE Sponsor: UBS Report for the quarter and year ended 31 December 2011 Group results for the year.... - Record adjusted headline earnings of $1.3bn, up 65% from 2010. - Net profit attributable to ordinary shareholders rose 20-fold to $1.55bn - Cash flow from operating activities increased by 59% to $2.66bn. - Total dividend of 380 South African (approximately 49 US) cents, 162% (141%) increase from 2010. - Production of 4.33Moz at a total cash cost of $728/oz. - Net debt more than halved to $610m, from $1.29bn end of 2010 on the back of strong free cash flows. - Reserves grow 6%, or 4.4Moz, to 75.6Moz (net of depletion). - Resources grow 5%, or 10.9Moz, to 230.9Moz (net of depletion). For the fourth quarter... - Adjusted headline earnings of $295m, or 76 US cents a share. - Net profit attributable to equity shareholders $385m, from $56m a year earlier. - Cash inflow from operations at $644m. - Net debt decreases further to $610m, despite higher fourth-quarter capital expenditure and tax payments. - Fourth-quarter dividend of 200 South African (approximately 26 US) cents declared. - Production of 1.114Moz at a total cash cost of $762/oz, both within guidance. - La Colosa exploration success adds additional 3.8Moz resource; total now 16.3Moz. Quarter ended ended ended
Dec Sep Dec 2011 2011 2010 SA rand / Metric Operating review Gold Produced - kg / oz (000) 34,650 33,970 35,703 Price received 1 - R/kg / $/oz 437,885 394,799 99,671 Price received excluding hedge buy-back costs 1 - R/kg / $/oz 437,885 394,799 303,454 Total cash costs - R/kg / $/oz 198,267 168,935 148,474 Total production costs - R/kg / $/oz 277,397 211,460 201,465 Financial review Adjusted gross profit (loss) 2 - Rm / $m 5,502 5,870 (3,718) Adjusted gross profit excluding hedge buy-back costs 2 - Rm / $m 5,502 5,870 3,598 Profit attributable to equity shareholders - Rm / $m 3,124 3,304 404 - cents/share 809 855 105
Adjusted headline earnings (loss) 3 - Rm / $m 2,375 3,310 (5,263) - cents/share 615 857 (1,368) Adjusted headline earnings excluding hedge buy-back costs 3 - Rm / $m 2,375 3,310 2,026 - cents/share 615 857 527 Cash flow from operating activities excluding hedge buy-back costs - Rm / $m 5,185 6,497 5,076 Capital expenditure - Rm / $m 4,251 2,925 2,572 Year
ended ended Dec Dec 2011 2010 SA rand / Metric
Operating review Gold Produced - kg / oz (000) 134,699 140,418 Price received 1 - R/kg / $/oz 369,054 135,862 Price received excluding hedge buy-back costs 1 - R/kg / $/oz 369,054 271,018 Total cash costs - R/kg / $/oz 170,129 149,577 Total production costs - R/kg / $/oz 222,811 190,889 Financial review Adjusted gross profit (loss) 2 - Rm / $m 19,104 (8,027) Adjusted gross profit excluding hedge buy-back costs 2 - Rm / $m 19,104 10,927 Profit attributable to equity shareholders - Rm / $m 11,282 637 - cents/share 2,923 171 Adjusted headline earnings (loss) 3 - Rm / $m 9,418 (12,210) - cents/share 2,440 (3,283) Adjusted headline earnings excluding hedge buy-back costs 3 - Rm / $m 9,418 5,652 - cents/share 2,440 1,520 Cash flow from operating activities excluding hedge buy-back costs - Rm / $m 19,587 12,603 Capital expenditure - Rm / $m 11,259 7,413 Quarter ended ended ended
Dec Sep Dec 2011 2011 2010 US dollar / Imperial Operating review Gold Produced - kg / oz (000) 1,114 1,092 1,148 Price received 1 - R/kg / $/oz 1,684 1,713 452 Price received excluding hedge buy-back costs 1 - R/kg / $/oz 1,684 1,713 1,372 Total cash costs - R/kg / $/oz 762 737 672 Total production costs - R/kg / $/oz 1,065 922 912 Financial review Adjusted gross profit (loss) 2 - Rm / $m 682 816 (540) Adjusted gross profit excluding hedge buy-back costs 2 - Rm / $m 682 816 522 Profit attributable to equity shareholders - Rm / $m 385 456 56 - cents/share 100 118 15 Adjusted headline earnings (loss) 3 - Rm / $m 295 457 (764) - cents/share 76 118 (199) Adjusted headline earnings excluding hedge buy-back costs 3 - Rm / $m 295 457 294 - cents/share 76 118 76 Cash flow from operating activities excluding hedge buy-back costs - Rm / $m 644 863 679 Capital expenditure - Rm / $m 525 408 365 Year ended ended Dec Dec
2011 2010 US dollar / Imperial Operating review Gold Produced - kg / oz (000) 4,331 4,515 Price received 1 - R/kg / $/oz 1,576 561 Price received excluding hedge buy-back costs 1 - R/kg / $/oz 1,576 1,159 Total cash costs - R/kg / $/oz 728 638 Total production costs - R/kg / $/oz 950 816 Financial review Adjusted gross profit (loss) 2 - Rm / $m 2,624 (1,191) Adjusted gross profit excluding hedge buy-back costs 2 - Rm / $m 2,624 1,507 Profit attributable to equity shareholders - Rm / $m 1,552 76 - cents/share 402 20 Adjusted headline earnings (loss) 3 - Rm / $m 1,297 (1,758) - cents/share 336 (473)
Adjusted headline earnings excluding hedge buy-back costs 3 - Rm / $m 1,297 787 - cents/share 336 212
Cash flow from operating activities excluding hedge buy-back costs - Rm / $m 2,655 1,669 Capital expenditure - Rm / $m 1,527 1,015 Notes: 1. Refer to note C "Non-GAAP disclosure" for the definition. 2. Refer to note B "Non-GAAP disclosure" for the definition. 3. Refer to note A "Non-GAAP disclosure" for the definition. $ represents US dollar, unless otherwise stated. Rounding of figures may result in computational discrepancies. Operations at a glance for the quarter ended 31 December 2011 Production Total cash costs oz (000) % Variance 2 $/oz % Variance 2 SOUTH AFRICA 398 1 696 (8) Great Noligwa 20 (20) 1 280 2 Kopanang 66 (15) 766 9 Moab Khotsong 52 (27) 825 15 Mponeng 138 18 518 (12) Savuka 13 - 810 (13) TauTona 72 24 692 (24) Surface Operations 37 16 714 (19) CONTINENTAL AFRICA 419 2 799 8 Ghana Iduapriem 50 4 968 12 Obuasi 81 4 896 8 Guinea Siguiri - Attributable 85% 62 11 1 047 10 Mali Morila - Attributable 40% 3 28 17 771 (6) Sadiola - Attributable 41% 3 28 (10) 1 015 28 Yatela - Attributable 40% 3 7 (13) 1 915 24 Namibia Navachab 19 19 930 (16) Tanzania Geita 144 (3) 486 3 Non-controlling interests, exploration and other AUSTRALASIA 63 26 1 478 (6) Australia Sunrise Dam 63 26 1 388 (11) Exploration and other AMERICAS 234 (2) 612 17 Argentina Cerro Vanguardia - Attributable 92.50% 51 (2) 577 95 Brazil AngloGold Ashanti Mineracao 91 (10) 597 8 Serra Grande - Attributable 50% 21 40 626 (32) United States of America Cripple Creek & Victor 71 3 643 15 Non-controlling interests, exploration and other OTHER Sub-total 1 114 2 762 3 Equity accounted investments included above AngloGold Ashanti Adjusted
gross profit (loss) $m $m Variance 1 SOUTH AFRICA 320 30 Great Noligwa 3 (3) Kopanang 47 (14) Moab Khotsong 26 (19) Mponeng 145 32 Savuka 10 (1) TauTona 54 26 Surface Operations 35 9 CONTINENTAL AFRICA 207 (118) Ghana Iduapriem 20 (12) Obuasi (19) (66) Guinea Siguiri - Attributable 85% 25 (17) Mali Morila - Attributable 40% 3 23 2 Sadiola - Attributable 41% 3 18 (9) Yatela - Attributable 40% 3 (3) (4) Namibia Navachab 9 2 Tanzania Geita 128 (14) Non-controlling interests, exploration and other 6 - AUSTRALASIA (9) (9) Australia Sunrise Dam (2) (3) Exploration and other (6) (6) AMERICAS 186 (66) Argentina Cerro Vanguardia - Attributable 92.50% 30 (34) Brazil AngloGold Ashanti Mineracao 68 (30) Serra Grande - Attributable 50% 14 5 United States of America Cripple Creek & Victor 61 (8) Non-controlling interests, exploration and other 15 2 OTHER 16 20 Sub-total 720 (144) Equity accounted investments included above (38) 10 AngloGold Ashanti 682 (134) 1 Refer to note B "Non-GAAP disclosure" for the definition. 2 Variance December 2011 quarter on September 2011 quarter - increase (decrease). 3 Equity accounted joint ventures. Rounding of figures may result in computational discrepancies. Financial and Operating Report OVERVIEW FOR THE YEAR AND QUARTER FINANCIAL AND CORPORATE REVIEW ANNUAL REVIEW Full-year adjusted headline earnings 1 increased 65% to a record $1.3bn, or 336 US cents per share, from $787m, or 212 US cents per share in 2010. Net profit attributable to ordinary shareholders rose approximately twentyfold to $1.55bn for the full-year, compared with $76m in 2010. Cash flow generated from operating activities 1 rose to $2.66bn from $1.67bn the previous year. Free cash flow, after all capital expenditure, finance costs and tax, before dividends, was $833m. The strong performance in earnings and cash flow was aided by the continued implementation of the Project ONE business improvement initiative across all operating sites, as well as the removal of the hedge book which gave AngloGold Ashanti full exposure to the higher gold price. Total capital expenditure for 2011, the first year of intensive investment in AngloGold Ashanti`s medium-term growth plan, was $1.53bn compared with guidance of $1.6bn. Improved cash flow helped more than halve net debt to $610m at the end of the year, from $1.288bn at the end of 2010. Production in 2011 declined 4% to 4.33Moz, in line with the revised annual guidance issued by the company in November. Total cash costs rose 14% from 2010 to $728/oz, better than the revised guidance of $735/oz to $745/oz. Reserves 2 improved by 6% or 4.4Moz to end the year at 75.6Moz, after accounting for depletion. Resources 3 increased by 5% to 230.9Moz after depletion. These reserves will fill the pipeline for growth to between 5.4Moz and 5.6Moz, from a combination of greenfields and brownfields projects in the Americas, Australasia and Continental Africa. "With record adjusted headline earnings of $1.3bn and stronger cash flow than we`ve ever seen, we`ve laid a strong foundation on which to grow the business," Chief Executive Officer Mark Cutifani said. "Our focus now is on pushing our projects through the pipeline and ensuring continued strong returns for our shareholders." FOURTH-QUARTER REVIEW Strong performances from key assets within the Continental Africa portfolio, good cost containment in South Africa, along with full exposure to a spot gold price and weaker producer currencies, drove robust fourth-quarter earnings and cash- flow generation. As indicated in the third-quarter results presentation in November, fourth-quarter Adjusted Headline Earnings (AHE) 1 was adversely impacted by year-end accounting adjustments such as environmental rehabilitation, direct and indirect taxes and inventory provisions. AHE 1 were $295m, or 76 US cents a share in the three months to 31 December 2011. This earnings figure includes the $105m after tax adverse impact of the group environmental provisions. Fourth quarter`s AHE 1 were also adversely impacted by a lower gold price, higher cash costs and relatively higher levels of unsold gold at the quarter-end. AHE1 in the fourth quarter of 2010 was $294m, or 76 US cents a share, while AHE 1 for the third quarter of 2011 was $457m, or 118 US cents per share, which was boosted by a $70m once-off deferred tax credit. Fourth quarter net earnings attributable to ordinary shareholders were $385m, a sevenfold increase from the fourth quarter of 2010. This includes the benefit of the impairment reversal at Geita ($95m after tax). Impairments are included in net profit but are excluded from headline earnings. Cash flow generated from operating activities rose to $644m during the fourth quarter compared with an outflow of $382m a year earlier, when the final tranche of the hedge book was eliminated. Free cash flow, after all capital expenditure, finance costs and tax, before dividends, was $97m. These robust inflows helped further strengthen the group`s balance sheet. Net debt (excluding the mandatory convertible bond) was further reduced by $10m, to $610m, despite a 29% increase in capital spending from the previous quarter to $525m and higher tax payments. DIVIDEND The board of directors is pleased to announce a dividend of 200 South African cents for the fourth quarter. This takes the annual dividends declared to 380 South African cents, 162% more than the 145 South African cents declared in 2010. The company will continue to seek quarterly dividends in line with improved operating and financial performance, provided there is no threat to its investment-grade-credit rating and there is adequate allowance for funding its growth projects. 1 Normalised for hedge takeout 2 Calculated at a gold price of US$1,100/oz 3 Calculated at a gold price of US$1,600/oz OPERATING RESULTS Production for the three months to 31 December 2011 was 1.114Moz at a total cash cost of $762/oz. This compares with guidance of 1.11Moz at $790/oz and the previous quarter`s production of 1.092Moz at $737/oz. The fourth quarter`s result was bolstered by another solid performance from Geita in Tanzania, where the turnaround of the past 18 months continued and Obuasi, in Ghana, where the taskforce appointed in 2010, continued to make progress in improving the operation`s performance. There were also strong performances at Mponeng, TauTona, Sunrise Dam and Serra Grande. SAFETY Tragically, three fatalities were recorded at the Kopanang mine during the quarter, while two contractors passed away following accidents at Obuasi in Ghana and another at the Gramalote project in Colombia. This result undermines much of the progress made earlier in the year and has led the global safety team to develop new major incident risk protocols which set out operating requirements designed to minimise the likelihood of fatalities and high-severity incidents. These protocols will be rolled out in the second quarter of 2012 as part of a crucial effort to further improve the group`s safety performance. This initiative will build on the significant improvements made in recent years, with the all accident frequency rate (AIFR) - the broadest measure of safety performance - ending 2011 at a company record of 9.76 per million hours worked, 15% better than the 2010 level. This is the first time the rate has dropped below 10. The Continental Africa region was the star performer in the group in 2011, with an AIFR of 3.03 per million hours worked, a 42% improvement on the previous year. OPERATING REVIEW The South African operations produced 398,000oz at a total cash cost of $696/oz in the three months through 31 December 2011 compared with 394,000oz at a total cash cost of $757/oz the previous quarter. The marginal production increase over the previous quarter, which was affected by an industry-wide strike, was achieved despite extensive disruption from Section 54 safety stoppages which impacted the Vaal River operations in particular. The improvement in costs resulted from the higher production, normalisation of power tariffs following the higher-cost winter period, a higher by-product contribution and the weaker rand versus the dollar. At the West Wits Operations, Mponeng`s production increased by 18% to 138,000oz on a normalised operating schedule, while total cash costs improved by 12% to $518/oz. At neighbouring TauTona, output rose 24% to 72,000oz and total cash costs declined by 24% to $692/oz. The previous quarter`s performance had been impacted by the strike, as well increased seismicity. At the Vaal River Operations, operational difficulties in high-grade areas at Great Noligwa contributed to a 20% drop in production to 20,000oz, compared with the third quarter. The increase in total cash costs, however, was contained at 2%, rising to $1,280/oz. Moab Khotsong`s costs rose 15% from the previous quarter to $825/oz following a 27% drop in gold production to 52,000oz given the increased number of safety stoppages imposed by the state mine inspector and also the increased complexity of the geology at the mine. Kopanang, which also suffered the safety-related stoppages, experienced a 15% decline in production. Total cash cost increase was contained at 9% to $766/oz, assisted by a favourable by-product contribution. The Surface Operations achieved a 16% increase in production to 37,000oz following fewer interruptions and higher grades. Unit cash costs improved by 19% to $714/oz, despite increased maintenance to operational infrastructure during the quarter. Uranium production was marginally down from the previous quarter to 316,000lbs. The Continental Africa operations produced 419,000oz at a total cash cost of $799/oz in the fourth quarter of 2011, compared with 411,000z at a total cash cost of $739/oz the previous quarter. Geita delivered another strong quarter, though production was 3% lower at 144,000oz following repairs to the SAG Mill gearbox. This was, however, partially offset by a 12% increase in recovered grade. Total cash costs increased by 3% to $486/oz. At Obuasi, in Ghana, production was 4% higher at 81,000oz due to availability of higher-grade ore blocks and increased equipment availability underground. Total cash costs were 8% higher at $896/oz because of higher labour costs at the Ghana operations, year- end obsolete consumable stock write-offs and increased use of engineering spares consumption in line with the preventative maintenance cycle. At Iduapriem, production increased by 4% to 50,000oz as a result of access to higher grade ore, which was in turn partly offset by a lower tonnage throughput following reduced plant availability. Total cash costs increased by 12% to $968/oz mainly due to the increased payroll costs and stock write-offs. At Siguiri, in Guinea, production was 11% higher at 62,000oz as tonnage throughput increased following efficiencies flowing from Project ONE and improved weather conditions. Total cash costs rose 10% to $1,047/oz after wage settlements during the period and adjustments to year-end stocks. At Morila, in Mali, higher recovered grades from stockpiles led to a 17% increase in production and a 6% improvement in costs. At Sadiola, lower grades caused a 10% decline in production to 28,000oz while total cash costs increased by 28% to $1,015/oz following the lower output and increased contractor rates. Higher grades and throughout, following improved plant availability on the back of Project ONE`s implementation, helped a 19% rise in production at Navachab, in Namibia, to 19,000oz. Total cash costs improved 16% to $930/oz. The Americas operations produced 234,000oz at a total cash cost of $612oz in the fourth quarter of 2011, compared with 238,000oz at a total cash cost of $524/oz the previous quarter. At AngloGold Ashanti Brasil Mineracao, production declined by 10% to 91,000oz from the previous quarter at 101,000oz after a slight delay in commissioning of the pressure oxidation circuit, though this was partly offset by better-than-anticipated production from the Lamego unit. Total cash costs rose 8% to $597/oz given general inflationary pressure, higher maintenance costs, and lower by-product credit. At Serra Grande, attributable production was 40% higher at 21,000oz given higher grades. Total cash costs decreased 32% to $626/oz following the higher output and a weaker Brazilian real against the dollar. Cerro Vanguardia`s gold production was marginally lower at 51,000oz due mainly to lower feed grade, though this was partially offset by higher treated tonnes. The increased feed and an improvement in recovered grade resulted in an 84% increase in silver production to 874,400oz. The impact on total cash costs, however, was muted given shipment schedules that straddled the quarter end. Total cash cost rose 95% to $577/oz given the resultant drop in contribution from silver by-product credits, as well as higher costs for catering and transportations contractors, consumption of spare parts and building maintenance. At Cripple Creek & Victor, gold production rose 3% from the previous quarter to 71,000oz as ore continued to be placed on newer sections of the heap leach pad, closer to liner. Total cash cost increased by 15% to $643/oz mainly due to lower grades mined and placed on the pad. In Australasia, production from Sunrise Dam recovered to 63,000oz at a total cash cost of $1,388/oz, compared with 50,000oz at $1,568/oz the previous quarter. Whilst the pit-wall failure from the first quarter continued to impact operations, open-pit mining recommenced with the completion of the ramp into the open-pit operating area. A total of 347m of underground capital development and 1,926m of operational development were completed during the quarter. PROJECTS AngloGold Ashanti incurred capital expenditure of $525m (including joint ventures) during the quarter, of which $179m was spent on growth projects. Of the growth-related capital, $71m was spent in the Americas, $32m was spent in Continental Africa, $27m in Australasia and $49m in South Africa. Phase 2 of Moab Khotsong`s Zaaiplaats project, with a capital cost of $395m (real) was approved by the board as was the Below 120 CLR project at Mponeng, at a capital cost of $416m (real). These are low-risk, high return projects that extend the life of these two cornerstone mines in South Africa. Significant progress continued at the Kibali joint venture in the Democratic Republic of Congo, a 19Moz mineral resource which will become the country`s largest gold mine. AngloGold Ashanti and Randgold Resources each own a 45% stake in Kibali while Sokimo, the state-owned gold company, owns the remainder. AngloGold Ashanti`s board is expected to receive the final feasibility document for approval in the coming months, though in the meantime funding will continue for critical path items and work in order to maintain the project timeline. The first phase of Kibali`s development will cover relocation of local communities, construction of the metallurgical facility, one hydropower station and back-up thermal power facility, the tailings storage facility, open pit mining and all shared infrastructure, with initial production targeted from around the end of 2013. The second phase of the capital programme, which will run concurrently with Phase 1, is focused primarily on underground development and includes a twin decline and vertical shaft system as well as three hydropower stations. This is expected to bring the underground into first production by the end of 2014, with steady state production targeted for the end of 2015. During the fourth quarter, the project progressed in line with the project development schedule. The Relocation Action Plan at the site continued with 250 families from the Chauffeur village, the first of 14 villages identified in the project plan, being resettled. At the end of December 2011, 499 houses had been built and construction of the Catholic Church complex commenced. The detailed design of the metallurgical process facility, all shared service facilities, the tailings storage facility and general mine infrastructure were finalised in the quarter. Detailed mine design continued and open-pit mining tenders were in adjudication. All major long-lead items, including the winder, mills, turbines and open-pit mining equipment were secured. Grade control drilling in the open- pit commenced and opening of the pit was scheduled for the end of the first quarter, 2012. Earth moving and civil engineering contract packages were put out to tender and a shortlist of contractors identified. The optimised feasibility study for the Mongbwalu project, in which AngloGold Ashanti holds an 86.22% interest, is complete and will be presented to the joint venture board for approval next month. In the meantime, funding for critical- path items has continued to maintain the schedule for first production in 2014. Progress continued at a good pace during the quarter, with upgrading of staff accommodation and construction of the Bunia-Mongbwalu road. The project, AngloGold Ashanti`s beachhead in the highly prospective Kilo goldbelt of the north eastern DRC, comprises 18 exploitation tenements and spans roughly 5,500km2. Active green- and brownfield exploration continues in the area. Corrego do Sitio, in Brazil, the most advanced of AngloGold Ashanti`s projects currently in development, continued its mine ramp-up phase according to an updated plan. Portal II, the second entrance to the underground mine, was connected to surface in December, while haulage from this ramp commenced in January. The autoclave circuit was also commissioned in January. The business process framework component of Project ONE was launched at the metallurgical plant in November and reached "stabilisation" phase during December in the heavy mechanized equipment maintenance division and mine operational areas. By year- end, the plant had treated 70,000t. The Tropicana Gold Project in Australia (AngloGold Ashanti 70% and manager, Independence Group NL 30%) remained on schedule to commence gold production in the December 2013 quarter. The 220km access road neared completion and earthworks for the plant site, internal access roads and the airstrip continued. Fabrication of the permanent village buildings commenced and the village installation contract was awarded. All key procurement packages have been issued. The concrete contract was awarded and tenders were called for the structural, mechanical and piping contract. Secondary statutory approvals are on track. The operating management team has been formed, with all key positions now in role. A new Mineral Resource estimate was completed for Tropicana with a 1.05Moz increase bringing the total resource to 6.41Moz (100% basis). The increase is attributable to drilling in the Havana Deeps area. The full details of the updated Mineral Resource estimate were provided in an announcement on 29 November 2011. Exploration drilling continued at Havana Deeps and in the area between Tropicana and Havana. A total of 948m RC and 10,317m diamond drilling was completed. During the fourth quarter, an Australian dollar 600m revolving credit facility was obtained from a syndicate of banks to fund the requirements of the Tropicana project. This new facility will mature in December 2015. EXPLORATION Total exploration expenditure during the fourth quarter, inclusive of expenditure at equity accounted joint ventures, was $115m ($37m on brownfield, $43m on greenfield and $35m on pre-feasibility studies), compared with $96m the previous quarter ($35m on brownfield, $33m on greenfield and $28m on pre- feasibility studies). The following are highlights from the company`s exploration activities during the quarter. More detail on AngloGold Ashanti`s exploration programme can be found at www.anglogoldashanti.com. At Geita, in Tanzania, 11,431m of drilling were completed during the quarter focusing on Mineral Resource infill drilling around the mining operations and more regional exploration to support an Ore Reserve growth strategy. Mineral Resource upgrade-drilling was carried out on the Nyankanga deposit at the Block 1, Block 2, Cut 7 and Cut 8 with reconnaissance drilling completed over Mzingama and Prospect 30. In Nyankanga Block 2, borehole NYDD0303 intersected 30.5m @10.9g/t Au from 289m with the mineralisation hosted in a well silicified banded iron formation with abundant fine grained, disseminated pyrite and dolomite contained within the main shear. This intercept and others continue to prove the down dip continuity of gold mineralisation beyond the open-pit shell and indicate significant potential for underground mining. Intensive geological and structural pit wall mapping was undertaken in Geita Hill Cut 1 during the quarter by the GGM- JCU research team. An IP survey was continued at Star & Comet covering a total distance of 19.65km. A ground magnetic survey was commenced within Kukuluma, Area 3 west and Matandani. At Siguiri in Guinea, a total of 51,821m of drilling was completed. RC infill drilling focused on two main projects, with the aim of upgrading oxide Mineral Resources in Sokunu, Sokunu West and Kozan Central West. Results to date are encouraging. The quarter saw the discovery, on a previously unexplored trend, of a potential oxide Mineral Resource situated 2km west of the processing plant. Drilling of the Silakoro prospect provided the following significant drilling results: SIAC045 7.07m @ 3.79g/t Au from 13m; SKAC1834 12.6m @ 2.08g/t Au from 63m; SKAC1887 7.70m @ 4.48g/t Au from 10m; SIAC020 13.8m @ 5.64g/t AU from 29m. The greenfields team continued its geochemical soil sampling programme in Guinea during the quarter in Blocks 2, 3 and 4. Resource delineation and definition drilling commenced at Saraya during the quarter with 1,695m of reverse circulation drilling completed. Some of the pending assays from Saraya Main and Saraya South were received during the quarter. Highlights include SARC288: 15m at 3.23g/t Au from 56m; SARC284: 8m at 3.69g/t Au from 14m (including 4m @ 6.67g/t Au from 16m); SARC260: 7m @ 2.3g/t Au from 62m; SARCDD017: 9m @ 2.2g/t Au from 64m; SARC280: 4m @ 17.01g/t Au from 66m); SARC262 19m @ 3.02g/t Au from 80m; SARC259: 9m @ 2.06g/t Au from 114m. AC reconnaissance drilling commenced at Koun Koun South extensions (Block 3); 108 holes for 8,020m have been completed during the quarter (phase 3). Delineation diamond drilling continued at Koun Koun during the quarter; 5 holes totalling 1,429m were completed, assay results are pending. Assay results reported this quarter from phase 2 reconnaissance drilling have returned encouraging intersections in the saprolite and oxide zones, which include: KKRC029: 20m @ 1.14g/t Au from 9m; KKRC031: 18m @ 2.23g/t Au from 29m; KKRC035: 20m @ 1.43g/t Au from 29m; KKAC116: 16m @ 2.12g/t Au from 106m and; KKAC120: 27m @ 3.21g/t Au from 87m. In the Democratic Republic of the Congo, regional exploration continued on the 5,487km2 Kilo project. Greenfield exploration activities continued on five projects Lodjo, Issuru, Dala, Alosi Camp 3 and Petsi. An IP survey was completed for Camp 3 (Kilo Central) while diamond drilling continued at Pili Pili (Pluto North- Issuru). Trenching and soil sampling continued in Kilo Central and Kilo North. At Obuasi in Ghana, Below 50 Level exploration drilling achieved 930m and surface exploration continued at the Anyankyerim deposit with 3,329m drilled. Results to date are positive. A joint Obuasi-UWA-CET 3 year research project commenced during the quarter, with the primary deliverable an integrated 4D model for controls on geometry of mineralisation within the Obuasi system. The study is expected to enhance delineation of the Obuasi deeps Mineral Resource, exploration strategies in the Ashanti belt and in the Birimian. Greenfields exploration in the Middle East & North Africa region is being undertaken by the Thani Ashanti strategic Alliance. Exploration during the fourth quarter involved diamond drilling at the Hutite and Anbat prospects, located on the Hodine licence in Egypt. Almost 6,000m of diamond drilling was completed at Hutite and Anbat during the quarter, however results were received from only three holes due to delays with sample processing. In the United States, at Cripple Creek and Victor, a total of 11,085m were drilled. RC holes from the MLE-2 Programme continued to display significant ore grade gold mineralisation well below the 2011 WHEX & Grassy Valley Design Pit bottoms. For example, borehole GR-952, drilled at Grassy Valley, intersected 74.7m @ 11.0g/t Au from 38m. The results from this and other holes will help to deepen the current WHEX & Grassy Valley design pit bottoms. At La Colosa, in Colombia, drilling progressed well with 12,886m drilled and thirty seven boreholes completed. Five rigs continued to operate during most of the quarter. Very significant intersections continued to be obtained on the edges of the previously defined system and are expected to add to the overall Mineral Resource. During the quarter the following significant intersections were obtained from the Northern end of the deposit, which continue to expand the northern extent of the mineralisation and provide further support to the COL138 intersection reported last quarter, COL148 202.4m @ 2.27g/t Au from 236m; COL127 243.0m @ 1.2g/t Au from 78m; COL156 101.8m @ 1.3g/t Au from 240m; COL158 190.0m @ 1.34g/t Au from 128m; COL164 104.0m @ 2.2g/t Au from 90m. Greenfields exploration in the Americas focused on early stage exploration in Colombia, Canada, the United States, Brazil and Argentina. In Colombia, 249m of shallow drilling, and 886m of deep drilling were completed at the Quebradona joint venture to further define the nature and extent of shallow epithermal gold, and deeper porphyry copper-gold mineralisation, respectively. A 952 station soil survey programme was also completed. The tenement holding in Colombia by the end of the quarter stood at 15,442 km2. At Sunrise Dam in Australia, near-mine exploration continued to focus on extensional targets beneath the deposit and the Cosmo lode with some extensional drilling of the recently defined Vogue mineralisation. During the quarter 20,836m were drilled from 66 diamond drill holes from surface and underground positions. The Vogue mineralisation targets are geological complex domains that form as extensions of the Cosmo-Dolly system and show broad domains of low and high-grade gold mineralisation that extend for in excess of 400m in length and to depths greater than 900m vertical. Early indications are that a significant and broad mineralised domain exists with potential to significantly increase Mineral Resources at Sunrise Dam. Recent intercepts that include a composite of gold mineralisation and waste (up to 25m), include: 53.0m @ 2.00g/t Au; 118.2m @ 1.63g/t Au; 124.1m @ 1.54g/t Au; includes up to 25m of continuous waste to a cumulative total of 100m of waste, averaging >1g/t; 9.0m @ 8.25g/t; 7.2m @ 5.86g/t; 8.0m @ 8.8g/t; 32.7m @ 3.45g/t; 5.0m @ 6.78g/t; 34.7m @ 2.44g/t; 6.6m @ 6.33g/t; 21.0m @ 3.93g/t; 16.8m @ 3.11g/t; includes up 5m of continuous waste to a cumulative total of 25m of waste, averaging >1g/t. At Tropicana, a new Mineral Resource estimate was completed for Tropicana with a 1.05Moz increase bringing the total Mineral Resource to 6.41Moz (100% basis). The increase is attributable to drilling in the Havana Deeps area. Exploration drilling continued at Havana Deeps and in the area between Tropicana and Havana. A total of 948m RC and 10,317m diamond drilling were completed. Elsewhere in the Tropicana JV lease area, reconnaissance aircore drilling and RC/diamond drilling of a number of key prospects continued on the Tropicana JV tenements. At Iceberg, 35km south of the Tropicana Gold Mine, RC drilling completed during the previous quarter returned encouraging results including 2m @ 5.27g/t Au from 58m, 6m @ 1.37g/t Au from 64m and 4m @ 1.88g/t Au from 85m. Follow-up RC drilling is planned for 2012. At the Viking project (AngloGold Ashanti 100%) aircore drilling was completed at several prospects and results are pending. Auger soil sampling continued to generate targets for drill testing in 2012. In the Solomon Islands, exploration activities continued at the Kele and Mase Joint Ventures, which are held by AngloGold Ashanti (51%) and XDM Resources (49%). At the Mase JV Project, reconnaissance surface sampling continued with 586 samples collected in the Mase and Pundakona regions, including 407 soil, 124 stream and 55 rock chips. A number of significant stream, soil and some rock chip samples were returned from the Pundakona work, including a best rock chip sample of 17.3g/t Au. Further work is planned on these in early 2012. At the Kele JV Project, diamond drilling continued with 603m completed in three scout holes targeting porphyry-style mineralisation at the Konga prospect. OUTLOOK Group`s gold production for 2012 is estimated at between 4.3Moz to 4.4Moz. Total cash costs are estimated at between $780-$805/oz at an average exchange rate of R7.40/$, BRL1.70/$, A$1.01/$ and AP4.43/$ and fuel at $110/barrel. Both production and total cash costs estimates will be reviewed quarterly, in the light of safety related stoppages currently being experienced in South Africa and any other unforeseen factors. Gold production for the first quarter of 2012 is estimated at 1.03Moz. Total cash costs are estimated at between $820/oz-$835/oz at an average exchange rate of R7.40/$, BRL1.70/$, A$1.01/$ and AP4.35/$ and fuel at $110/barrel. Both estimates could see some downside risk in the light of safety related stoppages currently being experienced in South Africa. Review of the Gold Market Gold price movement and investment markets GOLD PRICE DATA Fear of sovereign defaults once again dominated markets during the fourth quarter, although this wasn`t always reflected in the gold price. Despite the growing uncertainty over Europe`s ability to resolve its debt crisis, the gold price never traded close to the all-time high of $1,920/oz seen in the previous quarter. In the quarter under review gold appeared to trade as a risk asset - experiencing selling pressure in times of heightened turmoil and not trading like the safe haven asset it is generally seen as. Continued uncertainty over how Europe is likely to resolve its funding crisis caused the Euro to slip against the US dollar and the relative strength of the greenback hindered appreciation of the gold price. Despite these headwinds, the spot gold price still gained 11% over 2011 and averaged $1,572/oz for the year. This marks a 28% appreciation over the average spot price of $1,227/oz in 2010 and marks the tenth consecutive year of price appreciation - the longest bull-run in the gold price to date. INVESTMENT DEMAND Towards the end of the third quarter of 2011, large scale ETF liquidation saw sales of some 2.5Mozs of gold. However buying early in the fourth quarter reversed this trend and by the end of October combined holdings were back around 75Mozs, the holdings level prevailing before the sell-off. Despite the failure of the gold price to respond to the worsening crisis in Europe, ETF holdings grew over the course of the fourth quarter and this quarter was by far the most positive in terms of ETF growth in 2011, with 1.25Mozs being added. The two previous quarters showed negative growth or net redemptions. At year end, aggregate holdings for the major ETFs totalled almost 78Mozs, which represents a 7% increase of 5.2Mozs for the year. This growth is negligible in comparison to the demand surges of the previous two years. That said, combined holdings of the ETFs remain significant. When compared to official sector holdings, combined ETFs rank 6th behind the USA (267Mozs), Germany (109Mozs), IMF (91Mozs), Italy (79Mozs) and France (78Mozs). COMEX positioning through the fourth quarter was relatively stable, with no extreme movements week on week. Interestingly, the positioning at the end of 2011 had decreased by almost 10Mozs from its January starting point. Investment demand in China was flat year on year at around 60t, but since the fourth quarter 2010 was considered a very strong quarter, performance of fourth quarter 2011 should be seen as likewise - especially when one considers that there was little investment activity in October as investors were skittish following the big gold price correction in September. In India fourth quarter investment demand suffered on the back of price volatility and the negative impact of a weakening Rupee. The biggest market for bar and coin hoarding in 2011 was Europe and its appetite for physical gold investment products remained strong in the last quarter of the year. In 2011 United States coin demand was softer than in 2010 as panic over the economy eased somewhat. OFFICIAL SECTOR Central Bank off-take of 21t was reported in October, with Russia taking the bulk of that at 19.5t. This activity was countered somewhat by the sale of 4.7t by the Bundesbank as part of a commemorative coin minting programme. The emergence of the official sector as gold buyer has become an increasingly important factor in terms of global gold demand and GFMS estimates Official Sector demand in 2011 to be 430t - roughly 15% of world mine production for the year. With the appreciation of the gold price over recent years, the weighting of gold as a percentage of certain Eurozone banks` reserves has arguably become significant and sits at over 70% of German, Italian and French reserves. JEWELLERY SALES In India the fourth quarter was the second consecutive quarter experiencing a decrease from 2010 levels of jewellery demand. High price volatility coupled with Rupee weakness against the dollar hit the jewellery market harder than it did investment demand. Since fabrication charges are levied on jewellery, investment products present better value to those feeling the Rupee price squeeze. Many players believe that the currency is undervalued and are holding off on making purchases until the Rupee strengthens. As a result inventories remain low. In China, the market for pure gold jewellery continued to grow in the fourth quarter, albeit at a modest rate of 2%. Consumer fears around inflation helped spur gold demand in both pure gold jewellery and investment products. Shares in some of China`s major jewellery retailers showed very strong growth in 2011, due in large part to the rising gold price and the value of pure gold jewellery as an investment vehicle. In the United States the first three quarters of 2011 delivered gold jewellery growth of 3% over the same period of 2010 and most retailers reported reasonably good holiday sales in the fourth quarter. In line with the trend experienced since 2010, high-end players continue to see the strongest growth in revenues, but the lower- and mid-end are starting to perform better thanks to easing credit terms and the efficient management of low inventories. Mineral Resource and Ore Reserve Mineral Resource and Ore Reserve are reported in accordance with the minimum standards described by the Australasian Code for Reporting of Exploration Results, Mineral Resource and Ore Reserve (JORC Code, 2004 Edition), and also conform to the standards set out in the South African Code for the Reporting of Exploration Results, Mineral Resource and Mineral Reserve (The SAMREC Code, 2007 edition). Mineral Resource is inclusive of the Ore Reserve component unless otherwise stated. AngloGold Ashanti strives to actively create value by growing its major asset - the Mineral Resource and Ore Reserve. This drive is based on an active, well- defined brownfields exploration programme, innovation in both geological modelling and mine planning and continual optimisation of its asset portfolio. Mineral Resource The total Mineral Resource increased from 220.0Moz in December 2010 to 230.9Moz in December 2011. A gross annual increase of 16.8Moz occurred before depletion, while the net increase after allowing for depletion is 10.9Moz. Changes in economic assumptions from December 2010 to December 2011 resulted in an 11.2Moz increase to the Mineral Resource, whilst exploration and modelling resulted in an increase of 7.9Moz. The remaining decrease of 2.2Moz resulted from various other factors. MINERAL RESOURCE Moz Mineral Resource as at 31 December 2010 220.0 Reductions Great Noligwa Mineral Resource reduced due to increased costs (0.6) Other Total of non-significant changes (1.8) Additions Tropicana Exploration success in the underground project 0.8 Gramalote Exploration success at Trinidad 0.9 Kopanang Grade increased as a result of exploration 1.1 Geita Combined effect of price and estimation 1.3 Iduapriem Increase in Mineral Resource price 1.3 Obuasi Increase in Mineral Resource price 2.3 La Colosa Exploration success 3.8 Other Total of non-significant changes 1.7 Mineral Resource as at 31 December 2011 230.9 Rounding of numbers may result in computational discrepancies. Mineral Resources have been estimated at a gold price of US$1,600/oz (2010: US$1,100/oz). ORE RESERVE The AngloGold Ashanti Ore Reserve increased from 71.2Moz in December 2010 to 75.6Moz in December 2011. A gross annual increase of 9.6Moz occurred before depletion of 5.2Moz. The increase net of depletion was therefore of 4.4Moz. Changes in economic assumptions from 2010 to 2011 resulted in an increase of 4.4Moz to the Ore Reserve, while exploration and modelling resulted in a further increase of 5.0Moz. The remaining increase of 0.2Moz resulted from various other factors. ORE RESERVE Moz Ore Reserve as at 31 December 2010 71.2 Reductions Moab Khotsong Depletion and minor model revision (0.5) Other Total non-significant changes (1.1) Additions Geita Improved Ore Reserve price 0.5 Cripple Creek & Victor Mine life extension added to Ore Reserve 0.5 Vaal River Surface Technical studies showed the economic extraction of gold and uranium from the tailings is economic 3.2
Other Total non-significant changes 1.7 Ore Reserve as at 31 December 2011 75.6 Rounding of numbers may result in computational discrepancies. Ore reserves have been calculated using a gold price of US$1,100/oz (2010: US$850/oz). By-products Several by-products are recovered as a result of the processing of gold Ore Reserves. In 2011, these include 57,299t of uranium oxide from the South African operations, 408,348t of sulphur from Brazil and 46.9Moz of silver from Argentina. Competent persons The information in this report relating to exploration results, Mineral Resources and Ore Reserves is based on information compiled by the Competent Persons. The Competent Persons consent to the inclusion of Exploration Results, Mineral Resource and Ore Reserve information in this report, in the form and context in which it appears. During the past decade, the company has developed and implemented a rigorous system of internal and external reviews of Exploration Results, Mineral Resources or Ore Reserves. A documented chain of responsibility exists from the Competent Persons at the operations to the company`s Mineral Resource and Ore Reserve Steering Committee. Accordingly, the Chairman of the Mineral Resource and Ore Reserve Steering Committee, VA Chamberlain, MSc (Mining Engineering), BSc (Hons) (Geology), MGSSA, FAusIMM, assumes responsibility for the Mineral Resource and Ore Reserve processes for AngloGold Ashanti and is satisfied that the Competent Persons have fulfilled their responsibilities. A detailed breakdown of Mineral Resource and Ore Reserve and backup detail is provided on the AngloGold Ashanti website (www.anglogoldashanti.com). MINERAL RESOURCE BY COUNTRY (ATTRIBUTABLE) INCLUSIVE OF ORE RESERVE Contained Contained Category Tonnes Grade gold gold million g/t tonnes Moz as at 31 December 2011 South Africa Measured 25.98 15.76 409.39 13.16 Indicated 799.63 2.57 2,056.44 66.12 Inferred 38.30 14.91 570.81 18.35
Total 863.91 3.52 3,036.65 97.63 Democratic Republic of the Congo Measured - - - - Indicated 62.41 3.66 228.64 7.35 Inferred 33.16 2.90 96.07 3.09 Total 95.57 3.40 324.71 10.44 Ghana Measured 89.38 4.64 414.35 13.32 Indicated 97.81 3.42 334.74 10.76 Inferred 136.83 3.26 446.65 14.36 Total 324.04 3.69 1,195.74 38.44 Guinea Measured 37.19 0.62 22.96 0.74 Indicated 116.48 0.73 85.09 2.74 Inferred 67.18 0.79 53.17 1.71 Total 220.85 0.73 161.22 5.18 Mali Measured 12.65 1.31 16.57 0.53 Indicated 62.66 1.57 98.24 3.16 Inferred 36.58 1.04 37.96 1.22 Total 111.89 1.37 152.77 4.91 Namibia Measured 18.35 0.71 13.10 0.42 Indicated 99.78 1.22 122.04 3.92 Inferred 16.41 1.15 18.88 0.61 Total 134.54 1.14 154.01 4.95 Tanzania Measured - - - - Indicated 106.42 2.74 291.44 9.37 Inferred 33.55 2.97 99.50 3.20 Total 139.96 2.79 309.94 12.57 Australia Measured 35.13 1.71 60.01 1.93 Indicated 50.11 2.56 128.48 4.13 Inferred 11.05 3.92 43.28 1.39 Total 96.29 2.41 231.77 7.45 Argentina Measured 11.98 1.61 19.30 0.62 Indicated 26.09 3.40 88.76 2.85 Inferred 9.14 3.17 29.01 0.93 Total 47.22 2.90 137.08 4.41 Brazil Measured 10.53 6.31 66.44 2.14 Indicated 16.41 5.74 94.23 3.03 Inferred 36.93 6.30 232.73 7.48 Total 63.88 6.16 393.40 12.65 Colombia Measured 15.56 0.85 13.24 0.43 Indicated 33.97 0.79 26.98 0.87 Inferred 564.78 0.93 527.63 16.96 Total 614.31 0.92 567.85 18.26 United States of America Measured 280.58 0.78 217.65 7.00 Indicated 227.03 0.68 155.09 4.99 Inferred 96.04 0.65 62.16 2.00 Total 603.65 0.72 434.90 13.98
Total Measured 537.33 2.33 1,253.01 40.29 Indicated 1,698.79 2.18 3,710.18 119.29 Inferred 1,079.98 2.05 2,217.85 71.31 Total 3,316.10 2.17 7,181.04 230.88
Rounding of figures may result in computational discrepancies. MINERAL RESOURCE BY COUNTRY (ATTRIBUTABLE) EXCLUSIVE OF ORE RESERVE Contained Contained Category Tonnes Grade gold gold
million g/t tonnes Moz as at 31 December 2011 South Africa Measured 15.36 16.99 261.03 8.39 Indicated 230.15 4.01 923.55 29.69 Inferred 16.98 21.15 358.97 11.54 Total 262.49 5.88 1,543.56 49.63 Democratic Republic of the Congo Measured - - - - Indicated 28.97 3.04 87.97 2.83 Inferred 33.16 2.90 96.07 3.09
Total 62.13 2.96 184.03 5.92 Ghana Measured 20.74 5.15 106.80 3.43 Indicated 64.26 3.63 233.54 7.51 Inferred 136.67 3.27 446.64 14.36
Total 221.66 3.55 786.98 25.30 Guinea Measured 0.83 0.54 0.45 0.01 Indicated 41.37 0.74 30.64 0.99 Inferred 67.18 0.79 53.17 1.71
Total 109.39 0.77 84.26 2.71 Mali Measured 4.73 0.86 4.09 0.13 Indicated 31.26 1.26 39.43 1.27 Inferred 36.58 1.04 37.96 1.22
Total 72.57 1.12 81.48 2.62 Namibia Measured 7.57 0.53 4.01 0.13 Indicated 53.86 1.06 56.88 1.83 Inferred 16.41 1.15 18.88 0.61
Total 77.85 1.02 79.77 2.56 Tanzania Measured - - - - Indicated 50.59 2.84 143.72 4.62 Inferred 33.55 2.97 99.50 3.20
Total 84.14 2.89 243.22 7.82 Australia Measured 2.27 0.58 1.32 0.04 Indicated 18.02 2.78 50.18 1.61 Inferred 10.72 3.99 42.78 1.38
Total 31.02 3.04 94.28 3.03 Argentina Measured 2.80 2.08 5.81 0.19 Indicated 22.22 2.13 47.28 1.52 Inferred 9.14 3.17 29.01 0.93
Total 34.16 2.40 82.11 2.64 Brazil Measured 2.86 7.39 21.13 0.68 Indicated 7.02 6.53 45.82 1.47 Inferred 35.80 6.37 228.05 7.33
Total 45.67 6.46 295.00 9.48 Colombia Measured 15.56 0.85 13.24 0.43 Indicated 33.97 0.79 26.98 0.87 Inferred 564.78 0.93 527.63 16.96
Total 614.31 0.92 567.85 18.26 United States of America Measured 119.80 0.71 85.17 2.74 Indicated 140.43 0.66 93.03 2.99
Inferred 82.15 0.66 54.08 1.74 Total 342.39 0.68 232.28 7.47 Total Measured 192.52 2.61 503.06 16.17 Indicated 722.13 2.46 1,779.02 57.20
Inferred 1,043.12 1.91 1,992.74 64.07 Total 1,957.76 2.18 4,274.82 137.44 Rounding of figures may result in computational discrepancies. ORE RESERVE BY COUNTRY (ATTRIBUTABLE) Contained Contained Category Tonnes Grade gold gold million g/t tonnes Moz as at 31 December 2011 South Africa Proved 11.89 8.85 105.17 3.38 Probable 573.65 1.57 903.41 29.05 Total 585.54 1.72 1,008.58 32.43
Democratic Republic of the Congo Proved - - - - Probable 33.44 4.21 140.69 4.52
Total 33.44 4.21 140.69 4.52 Ghana Proved 42.73 3.08 131.77 4.24 Probable 53.94 4.43 239.06 7.69 Total 96.67 3.84 370.83 11.92
Guinea Proved 35.72 0.61 21.90 0.70 Probable 72.18 0.69 42.97 1.61 Total 107.90 0.67 71.87 2.31 Mali Proved 5.20 1.91 9.93 0.32 Probable 43.13 1.56 67.20 2.16 Total 48.33 1.60 77.13 2.48 Namibia Proved 6.31 1.09 6.88 0.22 Probable 44.18 1.29 56.88 1.83
Total 50.49 1.26 63.76 2.05 Tanzania Proved - - - - Probable 55.81 2.64 147.11 4.73 Total 55.81 2.64 147.11 4.73
Australia Proved 32.86 1.79 58.69 1.89 Probable 23.98 2.55 73.95 2.38 Total 61.84 2.14 132.64 4.26 Argentina Proved 10.56 1.35 14.30 0.46 Probable 12.85 4.25 54.64 1.76 Total 23.41 2.95 68.94 2.22 Brazil Proved 7.01 5.51 38.65 1.24 Probable 7.84 4.68 36.65 1.18
Total 14.85 5.07 75.30 2.42 United States of America Proved 160.78 0.82 132.48 4.26 Probable 86.60 0.72 62.06 2.00
Total 247.38 0.79 194.54 6.25 Total Proved 313.07 1.66 519.78 16.71 Probable 1,012.60 1.81 1,831.63 58.89 Total 1,325.67 1.77 2,351.40 75.60
Rounding of figures may result in computational discrepancies. Group income statement Quarter Quarter Quarter ended ended ended
December September December 2011 2011 2010 SA Rand million Notes Unaudited Reviewed Unaudited Revenue 2 15 034 13 428 11 095 Gold income 14 385 12 850 10 614 Cost of sales 3 (8 883) (6 980) (7 016) Loss on non-hedge derivatives and other commodity contracts 4 (2) (5) (529) Gross profit 5 500 5 865 3 069 Corporate administration, marketing and other expenses (623) (488) (518) Exploration costs (672) (541) (338) Other operating income (expenses) 5 38 (84) (27) Special items 6 1 191 (97) (208) Operating profit 5 434 4 655 1 978 Interest received 185 75 119 Exchange (loss) gain (76) 123 93 Fair value adjustment on option component of convertible bonds (113) 88 (280) Finance costs and unwinding of obligations 7 (389) (345) (357) Fair value adjustment on mandatory convertible bonds 84 66 (222) Share of equity accounted investments` profit 137 175 63 Profit before taxation 5 262 4 837 1 394 Taxation 8 (1 996) (1 465) (878) Profit for the period 3 266 3 372 516 Allocated as follows: Equity shareholders 3 124 3 304 404 Non-controlling interests 142 68 112 3 266 3 372 516 Basic earnings per ordinary share (cents) 1 809 855 105 Diluted earnings per ordinary share (cents) 2 768 788 105 Year Year
ended ended December December 2011 2010 SA Rand million Reviewed Audited Revenue 50 411 40 135 Gold income 47 849 38 833 Cost of sales (28 745) (25 833) Loss on non-hedge derivatives and other commodity contracts (9) (5 136) Gross profit 19 095 7 864 Corporate administration, marketing and other expenses (2 025) (1 589) Exploration costs (2 039) (1 446) Other operating income (expenses) (187) (149) Special items 1 302 (894) Operating profit 16 146 3 786 Interest received 388 311 Exchange (loss) gain 18 18 Fair value adjustment on option component of convertible bonds 563 39 Finance costs and unwinding of obligations (1 417) (1 203) Fair value adjustment on mandatory convertible bonds 731 (382) Share of equity accounted investments` profit 532 467 Profit before taxation 16 961 3 036 Taxation (5 337) (2 018) Profit for the period 11 624 1 018 Allocated as follows: Equity shareholders 11 282 637 Non-controlling interests 342 381 11 624 1 018 Basic earnings per ordinary share (cents) 1 2 923 171 Diluted earnings per ordinary share (cents) 2 2 533 171 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 unaudited financial statements for the quarter and year on ended 31 December 2011 have been prepared by the corporate accounting staff of AngloGold Ashanti Limited headed by Mr John Edwin Staples, the Group`s Chief Accounting Officer. This process was supervised by Mr Srinivasan Venkatakrishnan, the Group`s Chief Financial Officer. The financial statements for the year ended on 31 December 2011 were reviewed, but not audited, by the Group`s statutory auditors, Ernst & Young Inc. A copy of their review report is available for inspection at the company`s head office. Group income statement Quarter Quarter Quarter ended ended ended December September December
2011 2011 2010 US Dollar million Notes Unaudited Reviewed Unaudited Revenue 2 1 859 1 873 1 613 Gold income 1 779 1 793 1 543 Cost of sales 3 (1 097) (977) (1 021) Loss on non-hedge derivatives and other commodity contracts 4 - (1) (77) Gross profit 682 815 445 Corporate administration, marketing and other expenses (77) (67) (76) Exploration costs (83) (76) (49) Other operating income (expenses) 5 4 (11) (4) Special items 6 146 (13) (31) Operating profit 672 648 285 Interest received 23 10 17 Exchange (loss) gain (10) 15 14 Fair value adjustment on option component of convertible bonds (15) 11 (41) Finance costs and unwinding of obligations 7 (48) (48) (52) Fair value adjustment on mandatory convertible bonds 9 9 (33) Share of equity accounted investments` profit 17 24 9 Profit before taxation 648 669 199 Taxation 8 (246) (204) (127) Profit for the period 402 465 72 Allocated as follows: Equity shareholders 385 456 56 Non-controlling interests 17 9 16 402 465 72 Basic earnings per ordinary share (cents) 1 100 118 15 Diluted earnings per ordinary share (cents) 2 95 109 14 Year Year ended ended December December
2011 2010 US Dollar million Reviewed Audited Revenue 6 925 5 514 Gold income 6 570 5 334 Cost of sales (3 946) (3 550) Loss on non-hedge derivatives and other commodity contracts (1) (702) Gross profit 2 623 1 082 Corporate administration, marketing and other expenses (278) (220) Exploration costs (279) (198) Other operating income (expenses) (27) (20) Special items 163 (126) Operating profit 2 202 518 Interest received 52 43 Exchange (loss) gain 2 3 Fair value adjustment on option component of convertible bonds 84 (1) Finance costs and unwinding of obligations (196) (166) Fair value adjustment on mandatory convertible bonds 104 (55) Share of equity accounted investments` profit 73 63 Profit before taxation 2 321 405 Taxation (723) (276) Profit for the period 1 598 129 Allocated as follows: Equity shareholders 1 552 76 Non-controlling interests 46 53 1 598 129
Basic earnings per ordinary share (cents) 1 402 20 Diluted earnings per ordinary share (cents) 2 346 20 1 Calculated on the basic weighted average number of ordinary shares. 2 Calculated on the diluted weighted average number of ordinary shares. Rounding of figures may result in computational discrepancies. Group statement of comprehensive income Quarter Quarter Quarter ended ended ended
December September December 2011 2011 2010 SA Rand million Unaudited Reviewed Unaudited Profit for the period 3 266 3 372 516 Exchange differences on translation of foreign operations 41 3 754 (759) Share of equity accounted investments` other comprehensive (expense) income (1) - 1 Net loss on cash flow hedges removed from equity and reported in gold income - - - Realised gain on hedges of capital items 1 - 1 Deferred taxation thereon - - - 1 - 1 Net (loss) gain on available-for-sale financial assets (71) (319) 369 Release on disposal and impairment of available-for-sale financial assets 20 126 (265) Deferred taxation thereon 24 (82) - (27) (275) 104 Actuarial loss recognised (323) - (175) Deferred taxation thereon 117 - 47 (206) - (128) Other comprehensive (expense) income for the period net of tax (192) 3 479 (781) Total comprehensive income (expense) for the period net of tax 3 074 6 851 (265) Allocated as follows: Equity shareholders 2 932 6 783 (377) Non-controlling interests 142 68 112 3 074 6 851 (265) Year Year ended ended
December December 2011 2010 SA Rand million Reviewed Audited Profit for the period 11 624 1 018 Exchange differences on translation of foreign operations 4 292 (1 766) Share of equity accounted investments` other comprehensive (expense) income (6) (1) Net loss on cash flow hedges removed from equity and reported in gold income - 279 Realised gain on hedges of capital items 3 3 Deferred taxation thereon (1) (99) 2 183 Net (loss) gain on available-for-sale financial assets (590) 511 Release on disposal and impairment of available-for-sale financial assets 162 (306) Deferred taxation thereon (58) 13 (486) 218 Actuarial loss recognised (323) (175) Deferred taxation thereon 117 47 (206) (128) Other comprehensive (expense) income for the period net of tax 3 596 (1 494) Total comprehensive income (expense) for the period net of tax 15 220 (476) Allocated as follows: Equity shareholders 14 878 (857) Non-controlling interests 342 381 15 220 (476) Rounding of figures may result in computational discrepancies. Group statement of comprehensive income Quarter Quarter Quarter ended ended ended December September December 2011 2011 2010
US Dollar million Unaudited Reviewed Unaudited Profit for the period 402 465 72 Exchange differences on translation of foreign operations 47 (389) 123 Share of equity accounted investments` other comprehensive (expense) income - - - Net loss on cash flow hedges removed from equity and reported in gold income - - - Realised gain on hedges of capital items - - - Deferred taxation thereon - - - - - - Net (loss) gain on available-for-sale financial assets (10) (42) 51 Release on disposal and impairment of available-for-sale financial assets 3 17 (36) Deferred taxation thereon 3 (11) - (4) (36) 15 Actuarial loss recognised (39) - (24) Deferred taxation thereon 14 - 6 (25) - (18)
Other comprehensive income (expense) for the period net of tax 18 (425) 120 Total comprehensive income for the period net of tax 420 40 192 Allocated as follows: Equity shareholders 403 31 176 Non-controlling interests 17 9 16 420 40 192
Year Year ended ended December December 2011 2010
US Dollar million Reviewed Audited Profit for the period 1 598 129 Exchange differences on translation of foreign operations (365) 213 Share of equity accounted investments` other comprehensive (expense) income (1) - Net loss on cash flow hedges removed from equity and reported in gold income - 38 Realised gain on hedges of capital items - - Deferred taxation thereon - (13) - 25 Net (loss) gain on available-for-sale financial assets (81) 70 Release on disposal and impairment of available-for-sale financial assets 22 (42) Deferred taxation thereon (8) 2 (67) 30 Actuarial loss recognised (39) (24) Deferred taxation thereon 14 6 (25) (18)
Other comprehensive income (expense) for the period net of tax (458) 250 Total comprehensive income for the period net of tax 1 140 379 Allocated as follows: Equity shareholders 1 094 326 Non-controlling interests 46 53 1 140 379
Rounding of figures may result in computational discrepancies. Group statement of financial position As at As at As at December September December
2011 2011 2010 SA Rand million Note Reviewed Reviewed Audited ASSETS Non-current assets Tangible assets 52 462 48 991 40 600 Intangible assets 1 686 1 547 1 277 Investments in associates and equity accounted joint ventures 5 647 5 613 4 087 Other investments 1 497 1 563 1 555 Inventories 3 295 3 304 2 268 Trade and other receivables 611 942 1 000 Deferred taxation 632 557 131 Cash restricted for use 186 179 214 Other non-current assets 73 76 59 66 089 62 772 51 191 Current assets Inventories 8 552 7 778 5 848 Trade and other receivables 2 823 2 257 1 625 Derivatives - - 6 Current portion of other non-current assets - 10 4 Cash restricted for use 278 304 69 Cash and cash equivalents 8 944 8 717 3 776 20 597 19 066 11 328
Non-current assets held for sale 172 12 110 20 769 19 078 11 438 TOTAL ASSETS 86 858 81 850 62 629 EQUITY AND LIABILITIES Share capital and premium 11 46 122 45 903 45 678 Retained earnings and other reserves (5 690) (8 243) (19 470) Non-controlling interests 1 106 1 086 815 Total equity 41 538 38 746 27 023 Non-current liabilities Borrowings 19 750 19 778 16 877 Environmental rehabilitation and other provisions 6 288 4 845 3 873 Provision for pension and post-retirement benefits 1 565 1 326 1 258 Trade, other payables and deferred income 116 133 110 Derivatives 751 636 1 158 Deferred taxation 9 315 8 519 5 910 37 785 35 237 29 186
Current liabilities Current portion of borrowings 256 382 886 Trade, other payables and deferred income 6 034 5 769 4 630 Taxation 1 245 1 716 882 7 535 7 867 6 398 Non-current liabilities held for sale - - 22 7 535 7 867 6 420
Total liabilities 45 320 43 104 35 606 TOTAL EQUITY AND LIABILITIES 86 858 81 850 62 629 Rounding of figures may result in computational discrepancies. Group statement of financial position As at As at As at December September December 2011 2011 2010 US Dollar million Note Reviewed Reviewed Audited ASSETS Non-current assets Tangible assets 6 525 6 042 6 180 Intangible assets 210 191 194 Investments in associates and equity accounted joint ventures 702 692 622 Other investments 186 193 237 Inventories 410 407 345 Trade and other receivables 76 116 152 Deferred taxation 79 69 20 Cash restricted for use 23 22 33 Other non-current assets 9 9 9 8 220 7 741 7 792 Current assets Inventories 1 064 959 890 Trade and other receivables 350 279 247 Derivatives - - 1 Current portion of other non-current assets - 1 1 Cash restricted for use 35 38 10 Cash and cash equivalents 1 112 1 075 575 2 561 2 352 1 724 Non-current assets held for sale 21 1 16 2 582 2 353 1 740
TOTAL ASSETS 10 802 10 094 9 532 EQUITY AND LIABILITIES Share capital and premium 11 6 689 6 660 6 627 Retained earnings and other reserves (1 660) (2 015) (2 638) Non-controlling interests 137 133 124 Total equity 5 166 4 778 4 113 Non-current liabilities Borrowings 2 456 2 439 2 569 Environmental rehabilitation and other provisions 782 597 589 Provision for pension and post-retirement benefits 195 164 191 Trade, other payables and deferred income 14 16 17 Derivatives 93 78 176 Deferred taxation 1 158 1 051 900 4 698 4 345 4 442 Current liabilities Current portion of borrowings 32 47 135 Trade, other payables and deferred income 751 712 705 Taxation 155 212 134 938 971 974
Non-current liabilities held for sale - - 3 938 971 977 Total liabilities 5 636 5 316 5 419 TOTAL EQUITY AND LIABILITIES 10 802 10 094 9 532 Rounding of figures may result in computational discrepancies. Group statement of cash flows Quarter Quarter Quarter ended ended ended
December September December 2011 2011 2010 SA Rand million Unaudited Reviewed Unaudited Cash flows from operating activities Receipts from customers 14 789 13 336 10 955 Payments to suppliers and employees (8 163) (6 753) (5 944) Cash generated from operations 6 626 6 583 5 011 Dividends received from equity accounted investments 270 333 218 Taxation refund 13 8 - Taxation paid (1 724) (427) (153) Cash utilised for hedge buy-back costs - - (7 312) Net cash inflow (outflow) from operating activities 5 185 6 497 (2 236) Cash flows from investing activities Capital expenditure (3 679) (2 739) (2 470) Proceeds from disposal of tangible assets 61 26 12 Other investments acquired (99) (515) (152) Proceeds from disposal of investments 96 266 578 Investment in associates and equity accounted joint ventures (284) (222) (100) Proceeds from disposal of associate - - - Loans advanced to associates and equity accounted joint ventures (95) (78) - Proceeds from disposal of subsidiary - - - Cash in subsidiary disposed - - - Expenditure on intangible assets (80) (49) - Decrease (increase) in cash restricted for use 33 (65) 8 Interest received 79 79 59 Loans advanced - - (8) Repayment of loans advanced 7 16 2 Net cash outflow from investing activities (3 961) (3 281) (2 071) Cash flows from financing activities Proceeds from issue of share capital 48 16 31 Share issue expenses (2) - (31) Proceeds from borrowings 20 681 1 880 Repayment of borrowings (74) (792) (2 400) Finance costs paid (444) (105) (398) Mandatory convertible bond transaction costs - - (30) Dividends paid (540) (368) (139) Net cash (outflow) inflow from financing activities (992) (568) (1 087) Net increase (decrease) in cash and cash equivalents 232 2 648 (5 394) Translation (5) 413 (70) Cash and cash equivalents at beginning of period 8 717 5 656 9 313 Cash and cash equivalents at end of period (1) 8 944 8 717 3 849 Cash generated from operations Profit before taxation 5 262 4 837 1 394 Adjusted for: Movement on non-hedge derivatives and other commodity contracts 2 5 499 Amortisation of tangible assets 1 640 1 374 1 341 Finance costs and unwinding of obligations 389 345 357 Environmental, rehabilitation and other expenditure 1 159 (38) 470 Special items (1 121) 174 279 Amortisation of intangible assets 5 4 7 Deferred stripping (58) - 156 Fair value adjustment on option component of convertible bonds 113 (88) 280 Fair value adjustment on mandatory convertible bonds (84) (66) 222 Interest received (185) (75) (119) Share of equity accounted investments` profit (137) (175) (63) Other non-cash movements 38 (38) 133 Movements in working capital (397) 324 55 6 626 6 583 5 011 Movements in working capital Increase in inventories (813) (1 960) (101) Decrease (increase) in trade and other receivables 81 196 (200) Increase (decrease) in trade and other payables 335 2 088 356 (397) 324 55 Year Year ended ended
December December 2011 2010 SA Rand million Reviewed Audited Cash flows from operating activities Receipts from customers 49 375 39 717 Payments to suppliers and employees (27 798) (26 682) Cash generated from operations 21 577 13 035 Dividends received from equity accounted investments 899 939 Taxation refund 670 - Taxation paid (3 559) (1 371) Cash utilised for hedge buy-back costs - (18 333) Net cash inflow (outflow) from operating activities 19 587 (5 730) Cash flows from investing activities Capital expenditure (10 238) (7 108) Proceeds from disposal of tangible assets 144 500 Other investments acquired (1 038) (832) Proceeds from disposal of investments 652 1 039 Investment in associates and equity accounted joint ventures (844) (319) Proceeds from disposal of associate - 4 Loans advanced to associates and equity accounted joint ventures (189) (22) Proceeds from disposal of subsidiary 62 - Cash in subsidiary disposed (77) - Expenditure on intangible assets (128) - Decrease (increase) in cash restricted for use (124) 182 Interest received 280 232 Loans advanced - (41) Repayment of loans advanced 27 3 Net cash outflow from investing activities (11 473) (6 362) Cash flows from financing activities Proceeds from issue of share capital 70 5 656 Share issue expenses (4) (144) Proceeds from borrowings 741 16 666 Repayment of borrowings (1 967) (12 326) Finance costs paid (1 057) (821) Mandatory convertible bond transaction costs - (184) Dividends paid (1 286) (846) Net cash (outflow) inflow from financing activities (3 503) 8 001 Net increase (decrease) in cash and cash equivalents 4 611 (4 091) Translation 484 (236) Cash and cash equivalents at beginning of period 3 849 8 176 Cash and cash equivalents at end of period (1) 8 944 3 849 Cash generated from operations Profit before taxation 16 961 3 036 Adjusted for: Movement on non-hedge derivatives and other commodity contracts 9 2 946 Amortisation of tangible assets 5 582 5 022 Finance costs and unwinding of obligations 1 417 1 203 Environmental, rehabilitation and other expenditure 1 358 535 Special items (808) 1 076 Amortisation of intangible assets 17 18 Deferred stripping 122 921 Fair value adjustment on option component of convertible bonds (563) (39) Fair value adjustment on mandatory convertible bonds (731) 382 Interest received (388) (311) Share of equity accounted investments` profit (532) (467) Other non-cash movements 138 250 Movements in working capital (1 005) (1 537) 21 577 13 035 Movements in working capital Increase in inventories (3 714) (667) Decrease (increase) in trade and other receivables (311) (781) Increase (decrease) in trade and other payables 3 020 (89) (1 005) (1 537) (1) The cash and cash equivalents balance at 31 December 2010 includes cash and cash equivalents included on the statement of financial position as part of non- current assets held for sale of R73m. Rounding of figures may result in computational discrepancies. Group statement of cash flows Quarter Quarter Quarter ended ended ended December September December 2011 2011 2010
US Dollar million Unaudited Reviewed Unaudited Cash flows from operating activities Receipts from customers 1 828 1 875 1 589 Payments to suppliers and employees (1 009) (988) (925) Cash generated from operations 819 887 664 Dividends received from equity accounted investments 34 34 39 Taxation refund 2 1 - Taxation paid (211) (59) (24) Cash utilised for hedge buy-back costs - - (1 061) Net cash inflow (outflow) from operating activities 644 863 (382) Cash flows from investing activities Capital expenditure (455) (382) (350) Proceeds from disposal of tangible assets 7 4 2 Other investments acquired (12) (74) (23) Proceeds from disposal of investments 12 37 80 Investment in associates and equity accounted joint ventures (34) (31) (15) Proceeds from disposal of associate - - - Loans advanced to associates and equity accounted joint ventures (12) (10) - Proceeds from disposal of subsidiary - - - Cash in subsidiary disposed - - - Expenditure on intangible assets (10) (6) - Decrease (increase) in cash restricted for use 3 (9) 2 Interest received 10 11 8 Loans advanced - - (1) Repayment of loans advanced 1 2 - Net cash outflow from investing activities (490) (458) (297) Cash flows from financing activities Proceeds from issue of share capital 6 2 4 Share issue expenses - - (4) Proceeds from borrowings 3 101 276 Repayment of borrowings (9) (104) (324) Finance costs paid (55) (14) (58) Mandatory convertible bond transaction costs - - (4) Dividends paid (66) (50) (20) Net cash (outflow) inflow from financing activities (121) (65) (130) Net increase (decrease) in cash and cash equivalents 33 340 (809) Translation 4 (104) 57 Cash and cash equivalents at beginning of period 1 075 839 1 338 Cash and cash equivalents at end of period (1) 1 112 1 075 586 Cash generated from operations Profit before taxation 648 669 199 Adjusted for: Movement on non-hedge derivatives and other commodity contracts - 1 72 Amortisation of tangible assets 203 192 195 Finance costs and unwinding of obligations 48 48 52 Environmental, rehabilitation and other expenditure 142 (6) 69 Special items (137) 23 42 Amortisation of intangible assets 1 1 1 Deferred stripping (7) (1) 23 Fair value adjustment on option component of convertible bonds 15 (11) 41 Fair value adjustment on mandatory convertible bonds (9) (9) 33 Interest received (23) (10) (17) Share of equity accounted investments` profit (17) (24) (9) Other non-cash movements 4 (4) 19 Movements in working capital (49) 18 (56) 819 887 664 Movements in working capital Increase in inventories (112) (15) (85) Decrease (increase) in trade and other receivables 8 73 (46) Increase (decrease) in trade and other payables 55 (40) 75 (49) 18 (56)
Year Year ended ended December December 2011 2010
US Dollar million Reviewed Audited Cash flows from operating activities Receipts from customers 6 796 5 448 Payments to suppliers and employees (3 873) (3 734) Cash generated from operations 2 923 1 714 Dividends received from equity accounted investments 111 143 Taxation refund 98 - Taxation paid (477) (188) Cash utilised for hedge buy-back costs - (2 611) Net cash inflow (outflow) from operating activities 2 655 (942) Cash flows from investing activities Capital expenditure (1 393) (973) Proceeds from disposal of tangible assets 19 69 Other investments acquired (147) (114) Proceeds from disposal of investments 91 142 Investment in associates and equity accounted joint ventures (115) (44) Proceeds from disposal of associate - 1 Loans advanced to associates and equity accounted joint ventures (25) (3) Proceeds from disposal of subsidiary 9 - Cash in subsidiary disposed (11) - Expenditure on intangible assets (16) - Decrease (increase) in cash restricted for use (19) 25 Interest received 39 32 Loans advanced - (6) Repayment of loans advanced 4 - Net cash outflow from investing activities (1 564) (871) Cash flows from financing activities Proceeds from issue of share capital 10 798 Share issue expenses (1) (20) Proceeds from borrowings 109 2 316 Repayment of borrowings (268) (1 642) Finance costs paid (144) (115) Mandatory convertible bond transaction costs - (26) Dividends paid (169) (117) Net cash (outflow) inflow from financing activities (463) 1 194 Net increase (decrease) in cash and cash equivalents 628 (619) Translation (102) 105 Cash and cash equivalents at beginning of period 586 1 100 Cash and cash equivalents at end of period (1) 1 112 586 Cash generated from operations Profit before taxation 2 321 405 Adjusted for: Movement on non-hedge derivatives and other commodity contracts 1 408 Amortisation of tangible assets 768 690 Finance costs and unwinding of obligations 196 166 Environmental, rehabilitation and other expenditure 171 78 Special items (93) 152 Amortisation of intangible assets 2 2 Deferred stripping 19 125 Fair value adjustment on option component of convertible bonds (84) 1 Fair value adjustment on mandatory convertible bonds (104) 55 Interest received (52) (43) Share of equity accounted investments` profit (73) (63) Other non-cash movements 21 37 Movements in working capital (170) (299) 2 923 1 714
Movements in working capital Increase in inventories (236) (236) Decrease (increase) in trade and other receivables - (142) Increase (decrease) in trade and other payables 66 79 (170) (299) (1) The cash and cash equivalents balance at 31 December 2010 includes cash and cash equivalents included on the statement of financial position as part of non- current assets held for sale of $11m. Rounding of figures may result in computational discrepancies. Group statement of changes in equity Equity holders of the parent Share Cash
capital Other flow and capital Retained hedge SA Rand million premium reserves earnings reserve Balance at 31 December 2009 39 834 1 194 (25 739) (174) Profit for the period 637 Other comprehensive (expense) income (1) 183 Total comprehensive (expense) income - (1) 637 183 Shares issued 5 988 Share issue expenses (144) Share-based payment for share awards net of exercised 92 Dividends paid (492) Dividends of subsidiaries Transfers to other reserves 25 (25) Translation (35) 157 1 Balance at 31 December 2010 45 678 1 275 (25 437) (15) Balance at 31 December 2010 45 678 1 275 (25 437) (15) Profit for the period 11 282 Other comprehensive (expense) income (6) 2 Total comprehensive (expense) income - (6) 11 282 2 Shares issued 448 Share issue expenses (4) Share-based payment for share awards net of exercised 51 Dividends paid (996) Dividends of subsidiaries Translation 55 (263) (2) Balance at 31 December 2011 46 122 1 375 (15 414) (15) US Dollar million Balance at 31 December 2009 5 805 161 (2 744) (23) Profit for the period 76 Other comprehensive income (expense) 25 Total comprehensive income (expense) - - 76 25 Shares issued 842 Share issue expenses (20) Share-based payment for share awards net of exercised 13 Dividends paid (67) Dividends of subsidiaries Transfers to other reserves 3 (3) Translation 17 (15) (1) Balance at 31 December 2010 6 627 194 (2 750) (2) Balance at 31 December 2010 6 627 194 (2 750) (2) Profit for the period 1 552 Other comprehensive expense (1) Total comprehensive (expense) income - (1) 1 552 - Shares issued 63 Share issue expenses (1) Share-based payment for share awards net of exercised 9 Dividends paid (131) Dividends of subsidiaries Translation (31) 29 Balance at 31 December 2011 6 689 171 (1 300) (2) Equity holders of the parent
Available Foreign for Actuarial currency sale (losses) translation SA Rand million reserve gains reserve Balance at 31 December 2009 414 (285) 6 314 Profit for the period Other comprehensive (expense) income 218 (128) (1 766) Total comprehensive (expense) income 218 (128) (1 766) Shares issued Share issue expenses Share-based payment for share awards net of exercised Dividends paid Dividends of subsidiaries Transfers to other reserves Translation (64) 4 Balance at 31 December 2010 568 (409) 4 548 Balance at 31 December 2010 568 (409) 4 548 Profit for the period Other comprehensive (expense) income (486) (206) 4 292 Total comprehensive (expense) income (486) (206) 4 292 Shares issued Share issue expenses Share-based payment for share awards net of exercised Dividends paid Dividends of subsidiaries Translation 65 (8) Balance at 31 December 2011 147 (623) 8 840 US Dollar million Balance at 31 December 2009 56 (38) (317) Profit for the period Other comprehensive income (expense) 30 (18) 213 Total comprehensive income (expense) 30 (18) 213 Shares issued Share issue expenses Share-based payment for share awards net of exercised Dividends paid Dividends of subsidiaries Transfers to other reserves Translation (6) Balance at 31 December 2010 86 (62) (104) Balance at 31 December 2010 86 (62) (104) Profit for the period Other comprehensive expense (67) (25) (365) Total comprehensive (expense) income (67) (25) (365) Shares issued Share issue expenses Share-based payment for share awards net of exercised Dividends paid Dividends of subsidiaries Translation (1) 9 Balance at 31 December 2011 18 (78) (469) Non-
controlling Total SA Rand million Total interests equity Balance at 31 December 2009 21 558 966 22 524 Profit for the period 637 381 1 018 Other comprehensive (expense) income (1 494) (1 494) Total comprehensive (expense) income (857) 381 (476) Shares issued 5 988 5 988 Share issue expenses (144) (144) Share-based payment for share awards net of exercised 92 92 Dividends paid (492) (492) Dividends of subsidiaries (469) (469) Transfers to other reserves - - Translation 63 (63) - Balance at 31 December 2010 26 208 815 27 023 Balance at 31 December 2010 26 208 815 27 023 Profit for the period 11 282 342 11 624 Other comprehensive (expense) income 3 596 3 596 Total comprehensive (expense) income 14 878 342 15 220 Shares issued 448 448 Share issue expenses (4) (4) Share-based payment for share awards net of exercised 51 51 Dividends paid (996) (996) Dividends of subsidiaries - (204) (204) Translation (153) 153 - Balance at 31 December 2011 40 432 1 106 41 538 US Dollar million Balance at 31 December 2009 2 900 130 3 030 Profit for the period 76 53 129 Other comprehensive income (expense) 250 250 Total comprehensive income (expense) 326 53 379 Shares issued 842 842 Share issue expenses (20) (20) Share-based payment for share awards net of exercised 13 13 Dividends paid (67) (67) Dividends of subsidiaries - (64) (64) Transfers to other reserves - - Translation (5) 5 - Balance at 31 December 2010 3 989 124 4 113 Balance at 31 December 2010 3 989 124 4 113 Profit for the period 1 552 46 1 598 Other comprehensive expense (458) (458) Total comprehensive (expense) income 1 094 46 1 140 Shares issued 63 63 Share issue expenses (1) (1) Share-based payment for share awards net of exercised 9 9 Dividends paid (131) (131) Dividends of subsidiaries - (27) (27) Translation 6 (6) - Balance at 31 December 2011 5 029 137 5 166 Rounding of figures may result in computational discrepancies. Segmental reporting for the quarter and year ended 31 December 2011 AngloGold Ashanti`s operating segments are being reported based on the financial information provided to the Chief Executive Officer and the Executive Management team, collectively identified as the Chief Operating Decision Maker ("CODM"). Individual members of the Executive Management team are responsible for geographic regions of the business. Quarter ended Year Dec Sep Dec Dec Dec 2011 2011 2010 2011 2010
Unaudited Reviewed Unaudited Reviewed Audited SA Rand million Gold income South Africa 5 429 4 839 4 499 18 610 16 056 Continental Africa 5 845 4 919 3 654 18 486 13 604 Australasia 837 658 988 2 797 3 391 Americas 3 167 3 195 2 073 10 816 8 202 15 278 13 610 11 214 50 709 41 253 Equity accounted investments included above (893) (760) (600) (2 860) (2 420) 14 385 12 850 10 614 47 849 38 833 Quarter ended Year Dec Sep Dec Dec Dec 2011 2011 2010 2011 2010
Unaudited Reviewed Unaudited Reviewed Audited US Dollar million Gold income South Africa 672 675 654 2 560 2 207 Continental Africa 722 683 532 2 530 1 868 Australasia 103 93 143 385 466 Americas 392 448 301 1 487 1 124 1 889 1 899 1 630 6 962 5 665 Equity accounted investments included above (110) (106) (87) (392) (331) 1 779 1 793 1 543 6 570 5 334 Quarter ended Year Dec Sep Dec Dec Dec 2011 2011 2010 2011 2010
Unaudited Reviewed Unaudited Reviewed Audited SA Rand million Gross profit (loss) South Africa 2 586 2 092 (345) 7 934 3 180 Continental Africa 1 661 2 346 4 412 6 797 4 219 Australasia (69) - (513) (103) (1 452) Americas 1 502 1 795 (317) 5 407 2 664 Corporate and other 125 (23) 13 202 171 5 805 6 210 3 250 20 237 8 782 Equity accounted investments included above (305) (345) (180) (1 142) (918) 5 500 5 865 3 069 19 095 7 864 Quarter ended Year Dec Sep Dec Dec Dec
2011 2011 2010 2011 2010 Unaudited Reviewed Unaudited Reviewed Audited US Dollar million Gross profit (loss) South Africa 320 290 (50) 1 083 429 Continental Africa 207 325 640 938 604 Australasia (9) - (75) (13) (206) Americas 186 252 (46) 744 357 Corporate and other 16 (4) 2 28 23 720 863 471 2 780 1 207 Equity accounted investments included above (38) (48) (26) (157) (125) 682 815 445 2 623 1 082 Quarter ended Year
Dec Sep Dec Dec Dec 2011 2011 2010 2011 2010 Unaudited Unaudited Unaudited Unaudited Audited SA Rand million
Adjusted gross profit (loss) excluding hedge buy-back costs (1) South Africa 2 586 2 092 1 652 7 934 4 580 Continental Africa 1 661 2 347 971 6 796 3 314 Australasia (69) - 279 (103) 217 Americas 1 504 1 799 863 5 418 3 563 Corporate and other 125 (23) 13 201 171 5 807 6 215 3 778 20 246 11 845
Equity accounted investments included above (305) (345) (180) (1 142) (918) 5 502 5 870 3 598 19 104 10 927
Quarter ended Year Dec Sep Dec Dec Dec 2011 2011 2010 2011 2010 Unaudited Unaudited Unaudited Unaudited Audited
US Dollar million Adjusted gross profit (loss) excluding hedge buy-back costs (1) South Africa 320 290 239 1 083 634 Continental Africa 207 325 141 938 455 Australasia (9) - 41 (13) 33 Americas 186 253 125 745 487 Corporate and other 16 (4) 2 28 23 720 864 548 2 781 1 632
Equity accounted investments included above (38) (48) (26) (157) (125) 682 816 522 2 624 1 507
(1) Refer to note B "Non-GAAP disclosure" for definition. Rounding of figures may result in computational discrepancies. Segmental reporting (continued) Quarter ended Year
Dec Sep Dec Dec Dec 2011 2011 2010 2011 2010 Unaudited Unaudited Unaudited Unaudited Audited kg
Gold production South Africa 12 365 12 243 14 801 50 489 55 528 Continental Africa 13 023 12 769 11 623 48 819 46 390 Australasia 1 968 1 558 3 175 7 658 12 313 Americas 7 294 7 401 6 105 27 733 26 187 34 650 33 970 35 703 134 699 140 418 Quarter ended Year
Dec Sep Dec Dec Dec 2011 2011 2010 2011 2010 Unaudited Unaudited Unaudited Unaudited Audited oz (000)
Gold production South Africa 398 394 476 1 624 1 785 Continental Africa 419 411 374 1 570 1 492 Australasia 63 50 102 246 396 Americas 234 238 196 891 842 1 114 1 092 1 148 4 331 4 515 Quarter ended Year
Dec Sep Dec Dec Dec 2011 2011 2010 2011 2010 Unaudited Unaudited Unaudited Unaudited Audited SA Rand million
Capital expenditure South Africa 1 466 1 004 1 009 3 919 3 096 Continental Africa 1 230 722 685 3 101 1 708 Australasia 326 227 71 759 290 Americas 1 194 895 782 3 348 2 270 Corporate and other 35 74 25 132 49 4 251 2 922 2 572 11 259 7 413 Equity accounted investments included above (251) (143) (102) (655) (305) 4 000 2 780 2 470 10 604 7 108 Quarter ended Year Dec Sep Dec Dec Dec
2011 2011 2010 2011 2010 Unaudited Unaudited Unaudited Unaudited Audited US Dollar million Capital expenditure South Africa 181 140 144 532 424 Continental Africa 152 101 97 420 234 Australasia 40 32 10 102 40 Americas 147 125 111 456 311 Corporate and other 5 10 3 17 6 525 408 365 1 527 1 015
Equity accounted investments included above (31) (20) (15) (88) (42) 494 388 350 1 439 973
As at As at As at Dec Sep Dec 2011 2011 2010 Reviewed Reviewed Audited
SA Rand million Total assets South Africa 17 272 16 489 16 226 Continental Africa 35 402 33 687 26 060 Australasia 5 922 4 717 3 644 Americas 20 106 19 287 13 855 Corporate and other 9 080 8 341 3 384 87 782 82 521 63 169
Equity accounted investments included above (924) (671) (540) 86 858 81 850 62 629 As at As at As at
Dec Sep Dec 2011 2011 2010 Reviewed Reviewed Audited US Dollar million
Total assets South Africa 2 148 2 033 2 469 Continental Africa 4 403 4 154 3 966 Australasia 736 582 555 Americas 2 501 2 378 2 109 Corporate and other 1 129 1 029 515 10 917 10 176 9 614 Equity accounted investments included above (115) (82) (82) 10 802 10 094 9 532 Rounding of figures may result in computational discrepancies. Notes for the quarter and year ended 31 December 2011 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 2010 and revised International Financial Reporting Standards (IFRS) which are effective 1 January 2011, where applicable. The financial statements of AngloGold Ashanti Limited have been prepared in compliance with IAS34, the JSE Listings Requirements and in the manner required by the South African Companies Act, 2008 for the preparation of financial information of the group for the quarter and year ended 31 December 2011. 2. Revenue Quarter ended Year Dec Sep Dec Dec Dec
2011 2011 2010 2011 2010 Unaudited Reviewed Unaudited Reviewed Audited SA Rand million Gold income 14,385 12,850 10,614 47,849 38,833 By-products (note 3) 398 406 321 1,618 935 Royalties received (note 6) 66 97 41 556 56 Interest received 185 75 119 388 311 15,034 13,428 11,095 50,411 40,135 Quarter ended Year Dec Sep Dec Dec Dec
2011 2011 2010 2011 2010 Unaudited Reviewed Unaudited Reviewed Audited US Dollar million Gold income 1,779 1,793 1,543 6,570 5,334 By-products (note 3) 49 57 47 224 129 Royalties received (note 6) 8 13 6 79 8 Interest received 23 10 17 52 43 1,859 1,873 1,613 6,925 5,514 3. Cost of sales Quarter ended Year
Dec Sep Dec Dec Dec 2011 2011 2010 2011 2010 Unaudited Reviewed Unaudited Reviewed Audited SA Rand million
Cash operating costs (6,378) (5,542) (5,120) (22,000) (20,084) Insurance reimbursement - - - - 123 By-products revenue (note 2) 398 406 321 1,618 935 (5,980) (5,136) (4,799) (20,382) (19,026) Royalties (410) (395) (313) (1,402) (1,030) Other cash costs (53) (67) (54) (218) (182) Total cash costs (6,443) (5,598) (5,166) (22,002) (20,238) Retrenchment costs (35) (26) (64) (108) (166) Rehabilitation and other non-cash costs (1,281) (80) (529) (1,778) (756) Production costs (7,759) (5,704) (5,759) (23,888) (21,160) Amortisation of tangible assets (1,640) (1,374) (1,341) (5,582) (5,022) Amortisation of intangible assets (5) (4) (7) (17) (18) Total production costs (9,404) (7,083) (7,107) (29,487) (26,200) Inventory change 521 102 92 742 367 (8,883) (6,980) (7,016) (28,745) (25,833)
Quarter ended Year Dec Sep Dec Dec Dec 2011 2011 2010 2011 2010 Unaudited Reviewed Unaudited Reviewed Audited
US Dollar million Cash operating costs (788) (777) (745) (3,029) (2,756) Insurance reimbursement - - - - 16 By-products revenue (note 2) 49 57 47 224 129 (739) (720) (698) (2,805) (2,611) Royalties (51) (55) (45) (193) (142) Other cash costs (6) (9) (8) (30) (25) Total cash costs (796) (784) (751) (3,028) (2,778) Retrenchment costs (4) (4) (9) (15) (23) Rehabilitation and other non-cash costs (157) (11) (78) (229) (109) Production costs (957) (799) (838) (3,272) (2,910) Amortisation of tangible assets (203) (192) (195) (768) (690) Amortisation of intangible assets (1) (1) (1) (2) (2) Total production costs (1,161) (992) (1,034) (4,042) (3,602) Inventory change 64 14 13 96 52 (1,097) (977) (1,021) (3,946) (3,550)
4. Loss on non-hedge derivatives and other commodity contracts Quarter ended Year Dec Sep Dec Dec Dec 2011 2011 2010 2011 2010
Unaudited Reviewed Unaudited Reviewed Audited SA Rand million Loss on realised non-hedge derivatives - - - - (2,073) Loss on hedge buy-back costs - - (7,316) - (18,954) (Loss) gain on unrealised non-hedge derivatives (2) (5) 6,787 (9) 15,891 (2) (5) (529) (9) (5,136) Quarter ended Year
Dec Sep Dec Dec Dec 2011 2011 2010 2011 2010 Unaudited Reviewed Unaudited Reviewed Audited US Dollar million Loss on realised non-hedge derivatives - - - - (277) Loss on hedge buy-back costs - - (1,061) - (2,698) (Loss) gain on unrealised non-hedge derivatives - (1) 985 (1) 2,273 - (1) (77) (1) (702)
Rounding of figures may result in computational discrepancies. 5. Other operating income (expenses) Quarter ended Year Dec Sep Dec Dec Dec
2011 2011 2010 2011 2010 Unaudited Reviewed Unaudited Reviewed Audited SA Rand million Pension and medical defined benefit provisions 67 (53) 45 (38) (28) 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 (29) (31) (72) (149) (121) 38 (84) (27) (187) (149) Quarter ended Year
Dec Sep Dec Dec Dec 2011 2011 2010 2011 2010 Unaudited Reviewed Unaudited Reviewed Audited US Dollar million
Pension and medical defined benefit provisions 8 (7) 7 (6) (3) 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) (4) (11) (21) (17) 4 (11) (4) (27) (20)
6. Special items Quarter ended Year Dec Sep Dec Dec Dec 2011 2011 2010 2011 2010
Unaudited Reviewed Unaudited Reviewed Audited SA Rand million Net impairment of tangible assets (note 9) 1,094 (22) (399) 999 (634) Impairment of investments (note 9) (20) (124) (16) (156) (16) Reversal (impairment) of other receivables 21 (1) (11) 10 (67) Net loss on disposal and derecognition of land, mineral rights, tangible assets and exploration properties (note 9) (54) (21) (81) (68) (191) Profit on disposal of investments (note 9) - - 269 - 314 Black Economic Empowerment transaction modification costs for Izingwe (Pty) Ltd - - - (44) - Royalties received (1) (note 2) 66 97 41 556 56 Insurance claim recovery on capital items (note 9) 26 - - 26 - Insurance claim recovery on loss of business - - 31 - 134 Indirect tax expenses and legal claims 58 (26) (46) (35) (125) Mandatory convertible bonds issue discount, underwriting and professional fees - - 5 - (396) Contractor termination costs at Geita Gold Mining Limited - - - - (8) Recovery (loss) on consignment inventory - - - - 39 Profit on disposal of subsidiary ISS International Limited (note 9) - - - 14 - 1,191 (97) (208) 1,302 (894) Quarter ended Year Dec Sep Dec Dec Dec
2011 2011 2010 2011 2010 Unaudited Reviewed Unaudited Reviewed Audited US Dollar million Net impairment of tangible assets (note 9) 134 (3) (59) 120 (91) Impairment of investments (note 9) (3) (16) (2) (21) (2) Reversal (impairment) of other receivables 2 - (2) 1 (9) Net loss on disposal and derecognition of land, mineral rights, tangible assets and exploration properties (note 9) (5) (4) (11) (8) (25) Profit on disposal of investments (note 9) - - 37 - 43 Black Economic Empowerment transaction modification costs for Izingwe (Pty) Ltd - - - (7) - Royalties received (1) (note 2) 8 13 6 79 8 Insurance claim recovery on capital items (note 9) 3 - - 3 - Insurance claim recovery on loss of business - - 4 - 19 Indirect tax expenses and legal claims 7 (3) (6) (6) (17) Mandatory convertible bonds issue discount, underwriting and professional fees - - 1 - (56) Contractor termination costs at Geita Gold Mining Limited - - - - (1) Recovery (loss) on consignment inventory - - - - 5 Profit on disposal of subsidiary ISS International Limited (note 9) - - - 2 - 146 (13) (31) 163 (126) (1) The December year includes the sale of the Ayanfuri royalty to Franco Nevada Corporation for a pre-taxation amount of R237m, $35m. 7. Finance costs and unwinding of obligations Quarter ended Year Dec Sep Dec Dec Dec 2011 2011 2010 2011 2010
Unaudited Reviewed Unaudited Reviewed Audited SA Rand million Finance costs (278) (246) (259) (1,021) (834) Unwinding of obligations, accretion of convertible (111) (99) (98) (396) (369) bonds and other discounts (389) (345) (357) (1,417) (1,203) Quarter ended Year Dec Sep Dec Dec Dec
2011 2011 2010 2011 2010 Unaudited Reviewed Unaudited Reviewed Audited US Dollar million Finance costs (34) (34) (38) (141) (115) Unwinding of obligations, accretion of convertible bonds and other discounts (14) (14) (14) (55) (51) (48) (48) (52) (196) (166) 8. Taxation Quarter ended Year Dec Sep Dec Dec Dec 2011 2011 2010 2011 2010 Unaudited Reviewed Unaudited Reviewed Audited
SA Rand million South African taxation Mining tax (573) (318) - (890) - Non-mining tax (60) 9 (53) (88) (112) Over (under) prior year provision 13 20 34 (21) 628 Deferred taxation Temporary differences (340) (373) 80 (1,586) 1,377 Unrealised non-hedge derivatives and other commodity contracts - - (461) - (2,353) Change in estimated deferred tax rate (77) - 39 (77) 39 (1,036) (662) (361) (2,662) (421)
Foreign taxation Normal taxation (517) (769) (617) (2,004) (1,628) Over (under) prior year provision 28 (55) 46 (25) 17 Deferred taxation Temporary differences (471) 22 54 (646) 37 Unrealised non-hedge derivatives and other commodity contracts - - - - (23) (959) (802) (517) (2,675) (1,597) (1,996) (1,465) (878) (5,337) (2,018) Quarter ended Year
Dec Sep Dec Dec Dec 2011 2011 2010 2011 2010 Unaudited Reviewed Unaudited Reviewed Audited US Dollar million
South African taxation Mining tax (71) (42) - (113) - Non-mining tax (7) 1 (8) (12) (13) Over (under) prior year provision 2 3 5 (4) 89 Deferred taxation Temporary differences (42) (53) 12 (222) 195 Unrealised non-hedge derivatives and other commodity contracts - - (67) - (334) Change in estimated deferred tax rate (9) - 6 (9) 6 (128) (92) (52) (360) (57) Foreign taxation Normal taxation (64) (107) (90) (275) (226) Over (under) prior year provision 4 (7) 7 (3) 3 Deferred taxation Temporary differences (57) 1 8 (85) 7 Unrealised non-hedge derivatives and other commodity contracts - - - - (3) (118) (113) (75) (363) (219) (246) (204) (127) (723) (276) Rounding of figures may result in computational discrepancies. 9. Headline earnings Quarter ended Year Dec Sep Dec Dec Dec 2011 2011 2010 2011 2010 Unaudited Reviewed Unaudited Reviewed Audited
SA Rand million The profit attributable to equity shareholders has been adjusted by the following to arrive at headline earnings: Profit attributable to equity shareholders 3,124 3,304 404 11,282 637 Net impairment of tangible assets (note 6) (1,094) 22 399 (999) 634 Net loss on disposal and derecognition of land, mineral rights, tangible assets and exploration properties (note 6) 54 21 81 68 191 Impairment of investments (note 6) 20 124 16 156 16 Profit on disposal of subsidiary ISS International Limited (note 6) - - - (14) - Insurance claim recovery on capital items (note 6) (26) - - (26) - Profit on disposal of investments (note 6) - - (269) - (314) Net Impairment (reversal) of investment in associates and joint ventures (49) 2 78 (33) 31 Special items of associates - - (7) - (7) Taxation on items above - current portion 1 - - 8 4 Taxation on items above - deferred portion 313 (15) (143) 260 (230) 2,344 3,458 561 10,702 962
Headline earnings per ordinary share (cents) (1) 607 895 146 2,773 259 Diluted headline earnings per ordinary share (cents) (2) 576 825 146 2,395 259 Quarter ended Year Dec Sep Dec Dec Dec 2011 2011 2010 2011 2010 Unaudited Reviewed Unaudited Reviewed Audited
US Dollar million The profit attributable to equity shareholders has been adjusted by the following to arrive at headline earnings: Profit attributable to equity shareholders 385 456 56 1,552 76 Net impairment of tangible assets (note 6) (134) 3 59 (120) 91 Net loss on disposal and derecognition of land, mineral rights, tangible assets and exploration properties (note 6) 5 4 11 8 25 Impairment of investments (note 6) 3 16 2 21 2 Profit on disposal of subsidiary ISS International Limited (note 6) - - - (2) - Insurance claim recovery on capital items (note 6) (3) - - (3) - Profit on disposal of investments (note 6) - - (37) - (43) Net Impairment (reversal) of investment in associates and joint ventures (6) - 11 (4) 5 Special items of associates - - (1) - (1) Taxation on items above - current portion - - - 1 - Taxation on items above - deferred portion 38 (2) (21) 31 (33) 289 476 79 1,484 122
Headline earnings per ordinary share (cents) (1) 75 123 21 384 33 Diluted headline earnings per ordinary share (cents) (2) 71 114 21 330 33 (1) Calculated on the basic weighted average number of ordinary shares. (2) Calculated on the diluted weighted average number of ordinary shares. 10. Number of shares Quarter ended
Dec Sep Dec 2011 2011 2010 Unaudited Reviewed Unaudited Authorised number of shares: Ordinary shares of 25 SA cents each 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 A redeemable preference shares of 50 SA cents each 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 Issued and fully paid number of shares: Ordinary shares in issue 382,242,343 381,850,470 381,204,080 E ordinary shares in issue 2,582,962 3,421,848 2,806,126 Total ordinary shares: 384,825,305 385,272,318 384,010,206 A redeemable preference shares 2,000,000 2,000,000 2,000,000 B redeemable preference shares 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 382,059,365 381,644,151 381,103,478 E ordinary shares 2,937,664 3,431,215 2,818,699 Fully vested options 1,121,745 1,305,486 797,875 Weighted average number of shares 386,118,774 386,380,852 384,720,052 Dilutive potential of share options 1,517,152 1,290,253 1,493,052 Dilutive potential of convertible bonds (1) 18,140,000 33,524,615 - Diluted number of ordinary shares 405,775,926 421,195,720 386,213,104 Year Dec Dec 2011 2010 Reviewed Audited
Authorised number of shares: Ordinary shares of 25 SA cents each 600,000,000 600,000,000 E ordinary shares of 25 SA cents each 4,280,000 4,280,000 A redeemable preference shares of 50 SA cents each 2,000,000 2,000,000 B redeemable preference shares of 1 SA cent each 5,000,000 5,000,000 Issued and fully paid number of shares: Ordinary shares in issue 382,242,343 381,204,080 E ordinary shares in issue 2,582,962 2,806,126 Total ordinary shares: 384,825,305 384,010,206 A redeemable preference shares 2,000,000 2,000,000 B redeemable preference shares 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 381,621,687 367,664,700 E ordinary shares 2,950,804 3,182,662 Fully vested options 1,389,122 1,023,459 Weighted average number of shares 385,961,613 371,870,821 Dilutive potential of share options 1,572,015 1,569,606 Dilutive potential of convertible bonds (1) 33,524,615 - Diluted number of ordinary shares 421,058,243 373,440,427 (1) The dilutive effect of the convertible bonds are not the same for the quarter and the year ended December 2011 as the effect of the 3.5% convertible bond is anti-dilutive for the quarter ended December 2011. 11. Share capital and premium As at Dec Sep Dec
2011 2011 2010 Reviewed Reviewed Audited SA Rand million Balance at beginning of period 46,343 46,343 40,662 Ordinary shares issued 408 234 5,771 E ordinary shares cancelled (63) (15) (90) Sub-total 46,688 46,562 46,343 Redeemable preference shares held within the group (313) (313) (313) Ordinary shares held within the group (103) (148) (139) E ordinary shares held within the group (150) (198) (213) Balance at end of period 46,122 45,903 45,678 As at Dec Sep Dec 2011 2011 2010 Reviewed Reviewed Audited
US Dollar million Balance at beginning of period 6,734 6,734 5,935 Ordinary shares issued 57 33 812 E ordinary shares cancelled (9) (2) (13) Sub-total 6,782 6,765 6,734 Redeemable preference shares held within the group (53) (53) (53) Ordinary shares held within the group (17) (22) (22) E ordinary shares held within the group (23) (30) (32) Balance at end of period 6,689 6,660 6,627 Rounding of figures may result in computational discrepancies. 12. Exchange rates Dec Sep Dec 2011 2011 2010 Unaudited Unaudited Unaudited ZAR/USD average for the year to date 7.26 6.97 7.30 ZAR/USD average for the quarter 8.09 7.14 6.88 ZAR/USD closing 8.04 8.11 6.57 ZAR/AUD average for the year to date 7.47 7.24 6.71 ZAR/AUD average for the quarter 8.19 7.50 6.80 ZAR/AUD closing 8.27 7.81 6.70 BRL/USD average for the year to date 1.68 1.63 1.76 BRL/USD average for the quarter 1.80 1.64 1.70 BRL/USD closing 1.87 1.89 1.67 ARS/USD average for the year to date 4.13 4.08 3.91 ARS/USD average for the quarter 4.25 4.16 3.96 ARS/USD closing 4.30 4.20 3.97 13. Capital commitments Dec Sep Dec 2011 2011 2010 Reviewed Reviewed Audited SA Rand million
Orders placed and outstanding on capital contracts at the prevailing rate of exchange (1) 1,626 2,317 1,156 Dec Sep Dec
2011 2011 2010 Reviewed Reviewed Audited US Dollar million Orders placed and outstanding on capital contracts at the prevailing rate of exchange (1) 202 286 176 (1) Includes capital commitments relating to equity accounted 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. Contingencies AngloGold Ashanti`s material contingent liabilities and assets at 31 December 2011 are detailed below: Contingencies and guarantees As at As at
Dec Dec Dec Dec 2011 2010 2011 2010 Reviewed Audited Reviewed Audited SA Rand million US Dollar million
Contingent liabilities Groundwater pollution (1) - - - - Deep groundwater pollution - South Africa (2) - - - - Sales tax on gold deliveries - Brazil (3) 708 587 88 89 Other tax disputes - Brazil (4) 304 219 38 34 Indirect taxes - Ghana (5) 97 70 12 11 ODMWA litigation (6) - - - - Contingent assets Royalty - Boddington Gold Mine (7) - - - - Royalty - Tau Lekoa Gold Mine(8) - - - - Financial Guarantees Oro Group (Pty) Limited (9) 100 100 12 15 1,209 976 150 149 AngloGold Ashanti is subject to contingencies pursuant to environmental laws and regulations that may in future require the group to take corrective action as follows: (1) Groundwater pollution - AngloGold Ashanti has identified groundwater contamination plumes at certain of its operations, which have occurred primarily as a result of seepage from mine residue stockpiles. Numerous scientific, technical and legal studies have been undertaken to assist 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 are not yet proven, that the use of phyto-technologies can address the 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. (2) Deep groundwater pollution - The company has identified a flooding and future pollution risk posed by deep groundwater in the Klerksdorp and Far West Rand gold fields. Various studies have been undertaken by AngloGold Ashanti 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 the Department of Mineral Resources and affected mining companies are now involved in the development of a "Regional Mine Closure Strategy". In view of the limitation of current information for the accurate estimation of a liability, no reliable estimate can be made for the obligation. (3) Sales tax on gold deliveries - Mineracao Serra Grande S.A. (MSG), received two tax assessments from the State of Goias related to payments of sales taxes on gold deliveries for export. AngloGold Ashanti C rrego do Sito Mineracao S.A. manages the operation and its attributable share of the first assessment is approximately $54m, R438m (December 2010: $55m, R363m). The company`s attributable share of the second assessment is approximately $34m, R270m (December 2010: $34m, R224m). In November 2006 the administrative council`s second chamber ruled in favour of MSG and fully cancelled the tax liability related to the first period. In July 2011, the administrative council`s second chamber ruled in favour of MSG and fully cancelled the tax liability related to the second period. The State of Goias has appealed to the full board of the State of Goias tax administrative council. The company believes both assessments are in violation of federal legislation on sales taxes. (4) Other tax disputes - MSG received a tax assessment in October 2003 from the State of Minas Gerais related to sales taxes on gold. The tax administrators rejected the company`s appeal against the assessment. The company is now appealing the dismissal of the case. The company`s attributable share of the assessment is approximately $9m, R74m (December 2010: $10m, R64m). AngloGold Ashanti subsidiaries in Brazil are involved in various 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 $29m, R230m (December 2010: $24m, R155m). (5) Indirect taxes - AngloGold Ashanti (Ghana) Limited received a tax assessment for $12m, R97m (December 2010: $11m, R70m) during September 2009 in respect of 2006, 2007 and 2008 tax years, following an audit by the tax authorities related to indirect taxes on various items. Management is of the opinion that the indirect taxes are not payable and the company has lodged an objection. (6) Occupational Diseases in Mines and Works Act, 1973 (ODMWA) litigation - The case of Mr Thembekile Mankayi was heard in the High Court of South Africa in June 2008, and an appeal heard in the Supreme Court of Appeal in 2010. In both instances judgement was awarded in favour of AngloGold Ashanti Limited on the basis that an employer is indemnified against such a claim for damages by virtue of the provisions of section 35 of the Compensation for Occupational Injuries and Diseases Act, 1993 (COIDA). A further appeal that was lodged by Mr Mankayi was heard in the Constitutional Court in 2010. Judgement in the Constitutional Court was handed down on 3 March 2011. The Constitutional Court held that section 35 of COIDA does not indemnify the employer against such claims. Mr Mankayi passed away subsequent to the hearing in the Supreme Court of Appeal. Following the Constitutional Court judgement, Mr Mankayi`s executor may proceed with his case in the High Court. This will comprise, amongst others, providing evidence showing that Mr Mankayi contracted silicosis as a result of negligent conduct on the part of AngloGold Ashanti. The company will defend the case and any subsequent claims on their merits. Should other individuals or groups lodge similar claims, these too will be defended by the company and adjudicated by the Courts on their merits. In view of the limitation of current information for the accurate estimation of a possible liability, no reliable estimate can be made of this possible obligation. (7) Royalty - As a result of the sale of the interest in the Boddington Gold Mine joint venture during 2009, the group is entitled to receive a royalty on any gold recovered or produced by the Boddington Gold Mine, where the gold price is in excess of Boddington Gold Mine`s cash cost plus $600/oz. The royalty commenced on 1 July 2010 and is capped at a total amount of $100m, R781m, of which $34m, R250m (December 2010: $4m, R30m) have been received to date. Royalties of $8m, R62m (December 2010: $2m, R17m) were received during the quarter. (8) 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 inflation adjustment). Where the average monthly rand price of gold does not exceed R180,000/kg (subject to inflation adjustment), the ounces produced in that quarter do not count towards the total 1.5Moz upon which the royalty is payable. The royalty will be determined at 3% of the net revenue (being gross revenue less State royalties) generated by the Tau Lekoa assets. Royalties on 219,005oz produced have been received to date. Royalties of $1m, R11m (December 2010: $3m, R21m) were received during the quarter. (9) Provision of surety - The company has provided sureties in favour of a lender on a gold loan facility with its affiliate Oro Group (Pty) Limited and one of its subsidiaries to a maximum value of $12m, R100m (December 2010: $15m, R100m). The suretyship agreements have a termination notice period of 90 days. 15. Borrowings AngloGold Ashanti`s borrowings are interest bearing. 16. Announcements On 16 November 2011, shareholders, in general meeting, authorised the directors to provide financial assistance to related or inter-related companies or corporations in terms of sections 44 and 45 of the South African Companies Act, 71 of 2008 (as amended). With effect from 1 January 2012, Mr Rodney John Ruston was appointed to the board of directors of AngloGold Ashanti Limited. This follows an announcement made on 9 December 2011. AngloGold Ashanti delisted from the following stock exchanges: - Euronext Paris with effect from 23 December 2011 (and from Euroclear France on 30 December 2011); and - Euronext Brussels with effect from 29 December 2011. 17. Subsequent events On 8 February 2012 the transaction to dispose of Amikan Holdings Limited, Imitzoloto Holdings Limited, Yeniseiskaya Holdings Limited, AngloGold Ashanti- Polymetal Strategic Alliance Management Company Holdings Limited and AS APK Holdings Limited to Polyholding Limited was completed. The consideration received for the disposal was $20m. These assets were classified as held for sale at 31 December 2011. 18. Dividend Interim Dividend No. 111 of 90 South African cents or 6.83238 UK pence or 16.659 cedis per ordinary share was paid to registered shareholders on 9 December 2011, while a dividend of 2.1762 Australian cents per CHESS Depositary Interest (CDI) was paid on the same day. On 12 December 2011, holders of Ghanaian Depositary Shares (GhDS) were paid 0.16659 cedis per GhDS. Each CDI represents one-fifth of an ordinary share, and 100 GhDSs represents one ordinary share. A dividend of 10.8747 US cents per American Depositary Share (ADS) was paid to holders of American Depositary Receipts (ADRs) on 19 December 2011. Each ADS represents one ordinary share. Interim Dividend No. E11 of 45 South African cents was paid to holders of E ordinary shares on 9 December 2011, being those employees participating in the Bokamoso ESOP and Izingwe Holdings (Proprietary) Limited. The directors declared Final Dividend No. 112 of 200 South African cents per ordinary share for the quarter and year ended 31 December 2011. In compliance with the requirements of Strate, given the company`s primary listing on the JSE, the salient dates for payment of the dividend are as follows: To holders of ordinary shares and to holders of CHESS Depositary Interests (CDIs) Each CDI represents one-fifth of an ordinary share. 2012
Currency conversion date for UK pounds, Australian dollars and Ghanaian cedis Thursday, 1 March Last date to trade ordinary shares cum dividend Friday, 2 March Last date to register transfers of certificated securities cum dividend Friday, 2 March Ordinary shares trade ex-dividend Monday, 5 March Record date Friday, 9 March Payment date Friday, 16 March On the payment date, dividends due to holders of certificated securities on the South African and United Kingdom share registers will be electronically transferred to shareholders` bank accounts. Given the increasing incidences of fraud with respect to cheque payments, the company has ceased the payment of dividends by way of cheque. Shareholders are requested to notify the relevant share registrars with banking details to enable future dividends to be paid via electronic funds transfer. Refer to the back cover for share registrar details. Dividends in respect of dematerialised shareholdings will be credited to shareholders` accounts with the relevant CSDP or broker. To comply with further requirements of Strate, between Monday, 5 March 2012 and Friday, 9 March 2012, both days inclusive, no transfers between the South African, United Kingdom, Australian and Ghana share registers will be permitted and no ordinary shares pertaining to the South African share register may be dematerialised or rematerialised. To holders of American Depositary Shares Each American Depositary Share (ADS) represents one ordinary share. 2012 Ex dividend on New York Stock Exchange Wednesday, 7 March Record date Friday, 9 March Approximate date for currency conversion Friday, 16 March Approximate payment date of dividend Monday, 26 March Assuming an exchange rate of R7.7193/$, the dividend payable per ADS is equivalent to 26 US cents. However the actual rate of payment will depend on the exchange rate on the date for currency conversion. To holders of Ghanaian Depositary Shares (GhDSs) 100 GhDSs represent one ordinary share. 2012 Last date to trade and to register GhDSs cum dividend Friday, 2 March GhDSs trade ex-dividend Monday, 5 March Record date Friday, 9 March Approximate payment date of dividend Monday, 19 March Assuming an exchange rate of R1/Cents (USD)0.22283, the dividend payable per share is equivalent to 0.4457 cedis. However, the actual rate of payment will depend on the exchange rate on the date for currency conversion. In Ghana, the authorities have determined that dividends payable to residents on the Ghana share register be subject to a final withholding tax at a rate of 8%. In addition, directors declared Interim Dividend No. E12 of 100 South African cents per E ordinary share, payable to employees participating in the Bokamoso ESOP and Izingwe Holdings (Proprietary) Limited. These dividends will be paid on Friday, 16 March 2012. By order of the Board T T MBOWENI M CUTIFANI Chairman Chief Executive Officer 14 February 2012 Shareholders` notice board Shareholders` diary: Financial year-end 31 December Annual financial statements posting on or about 31 March 2012 Annual general meeting 11:00 SA time 10 May 2012 Quarterly reports Released on or about - Quarter ended 31 March 2012 10 May 2012 - Quarter ended 30 June 2012 7 August 2012 - Quarter ended 30 September 2012 8 November 2012 - Quarter ended 31 December 2012 *14 February 2013 * Approximate dates. Dividends: Last date to trade Dividend Number Declared ordinary shares Payment date to cum dividend shareholders 2011 Final - number 112 14 February 2012 2 March 2012 9 March 2012 2012 Q1 Interim - number 113* *8 May 2012 *25 May 2012 *1 June 2012 2012 Q2 Interim - number 114* *3 August 2012 *24 August 2012 *31 August 2012 2012 Q3 Interim - number 115* *6 November 2012 *23 November 2012 *30 November 2012 Dividend Number Declared Payment date to ADS holders 2011 Final - number 112 14 February 2012 26 March 2012 2012 Q1 Interim - number 113* *8 May 2012 *18 June 2012 2012 Q2 Interim - number 114* *3 August 2012 *17 September 2012 2012 Q3 Interim - number 115* *6 November 2012 *17 December 2012 * Proposed, subject to board approval. Dividend policy: Dividends are proposed, and approved by the board of directors of AngloGold Ashanti, based on the financial results for the quarter. Dividends are recognised when declared by the board of directors of AngloGold Ashanti. AngloGold Ashanti expects to continue to pay dividends, although there can be no assurance that dividends will be paid in the future or as to the particular amounts that will be paid from year to year. The payments of future dividends will depend upon the Board`s ongoing assessment of AngloGold Ashanti`s earnings, after providing for long term growth and cash/debt resources, the amount of reserves available for dividend using going concern assessment and restrictions placed by the conditions of the convertible bonds and other debt facilities and other factors. Withholding tax: On 1 April 2012, a 10% withholding tax on dividends and other distributions payable to shareholders will come into effect. This withholding tax, which was announced by the South African Government on 21 February 2007, replaces the Secondary Tax on Companies. Although this may reduce the tax payable by the South African operations of the group, thereby increasing distributable earnings, the withholding tax will generally reduce the amount of dividends or other distributions received by AngloGold Ashanti shareholders. Annual general meeting: Shareholders on the South African register who have dematerialised their shares in the company (other than those shareholders whose shareholding is recorded in their own names in the sub-register maintained by their CSDP) and who wish to attend the annual general meeting to be held on 10 May 2012 in person, will need to request their CSDP or broker to provide them with the necessary authority in terms of the custody agreement entered into between them and the CSDP or broker. Voting rights: The South African Companies Act 71 of 2008 (as amended) provides that if voting is by a show of hands, any person present and entitled to exercise voting rights has one vote, irrespective of the number of voting rights that person would otherwise be entitled to. If voting is taken by way of poll, any shareholder who is present at the meeting, whether in person or by duly appointed proxy, shall have one vote for every share held. There are no limitations on the right of non-South African shareholders to hold or exercise voting rights attaching to any shares of the company. CDI holders are not entitled to vote in person at meetings, but may vote by way of proxy. Options granted in terms of the share incentive scheme do not carry rights to vote. Change of details: Shareholders are reminded that the onus is on them to keep the company, through its nominated share registrars, apprised of any change in their postal address and personal particulars. Similarly, where shareholders received dividend payments electronically (EFT), they should ensure that the banking details which the share registrars and/or CSDPs have on file are correct. Annual reports: Should you wish to receive a printed copy of our 2011 integrated report or any other report from our 2011 suite of reports, please request same from the contact persons listed at the end of this report or on the company`s website. Administrative information ANGLOGOLD ASHANTI LIMITED Registration No. 1944/017354/06 Incorporated in the Republic of South Africa Share codes: ISIN: ZAE000043485 JSE: ANG LSE: AGD NYSE: AU ASX: AGG GhSE (Shares): AGA GhSE (GhDS): AAD JSE Sponsor: UBS 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 6 St James`s Place London SW1A 1NP England Telephone: +44 20 7499 3916 Fax: +44 20 7491 1989 E-mail: jane.kirton@corpserv.co.uk Directors Executive M Cutifani
(Chief Executive Officer)
S Venkatakrishnan * (Chief Financial Officer) Non-Executive T T Mboweni (Chairman) F B Arisman # R Gasant Ms N P January-Bardill W A Nairn Prof L W Nkuhlu F Ohene-Kena + S M Pityana R J Ruston
(effective 1 January 2012)
* British # American
Australian South African + Ghanaian Indian Officers Company Secretary: Ms L Eatwell Investor Relations Contacts South Africa Michael Bedford Telephone: +27 11 637 6273 Mobile: +27 82 374 8820 E-mail: mbedford@AngloGoldAshanti.com United States Stewart Bailey Telephone: +1-212-836-4303 Mobile: +1-646-717-3978 E-mail: sbailey@AngloGoldAshanti.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. Share Registrars South Africa Computershare Investor Services (Pty) Limited Ground Floor, 70 Marshall Street Johannesburg 2001 (PO Box 61051, Marshalltown 2107) South Africa Telephone: 0861 100 950 (in SA) Fax: +27 11 688 5218 web.queries@computershare.co.za United Kingdom Computershare Investor Services PLC The Pavilions Bridgwater Road Bristol BS13 8AE England Telephone: +44 870 702 0000 Fax: +44 870 703 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: 1300 55 2949 (in Australia) 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 The Bank of New York Mellon ("BoNY") 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 PUBLISHED BY ANGLOGOLD ASHANTI PRINTED BY INCE (PTY) LIMITED Certain statements made in this communication, including, without limitation, those concerning the economic outlook for the gold mining industry, expectations regarding gold prices, production, cash costs and other operating results, growth prospects and outlook of AngloGold Ashanti`s operations, individually or in the aggregate, including the completion and commencement of commercial operations of certain of AngloGold Ashanti`s exploration and production projects and the completion of announced mergers and acquisitions transactions, AngloGold Ashanti`s liquidity, capital resources and capital expenditure and the outcome and consequences of any litigation or regulatory proceedings or environmental issues, contain certain forward-looking statements regarding AngloGold Ashanti`s operations, economic performance and financial condition. Although AngloGold Ashanti believes that the expectations reflected in such forward-looking statements 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 and market conditions, success of business and operating initiatives, changes in the regulatory environment and other government actions including environmental approvals and actions, fluctuations in gold prices and exchange rates, and business and operational risk management. For a discussion of certain of these and other factors, refer to AngloGold Ashanti`s annual report for the year ended 31 December 2010, which was distributed to shareholders on 29 March 2011 and the company`s 2010 annual report on Form 20- F, which was filed with the Securities and Exchange Commission in the United States on 31 May 2011. 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. AngloGold Ashanti undertakes no obligation to update publicly or release any revisions to these forward-looking statements to reflect events or circumstances after today`s date or to reflect the occurrence of unanticipated events. 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 contains 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. Date: 15/02/2012 09:15:07 Supplied by www.sharenet.co.za Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.

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