Wrap Text
Report for the quarter and nine months ended 30 September 2014
ANGLOGOLD ASHANTI LIMITED
Registration No. 1944/017354/06
Incorporated in the Republic of South Africa
Share codes:
ISIN: ZAE000043485
JSE: ANG
NYSE: AU
ASX: AGG
GhSE: (Shares) AGA
GhSE: (GhDS) AAD
Report
for the quarter and nine months ended 30 September 2014
- Record safety measures across all metrics; Industry-leading 2nd consecutive fatality-free quarter
- Normalise AHE of USD66m, or 16 US cents a share on strong production, despite lower gold price
- Production of 1.128Moz ahead of guidance; Up 8% year-on-year and 3% on prior quarter
- Total cash costs of USD820/oz were better than guidance of USD850/oz - USD890/oz
- All-in-sustaining costs improve by 10% year-on-year to USD1,036/oz on strong cost management
- All-in-cost improve 19% year-on-year to USD1,144/oz
- AngloGold Ashanti generates modest free cash flow after strong operating quarter
- Prioritising self-help measures to deleverage balance sheet
- Net debt reduced to USD2,952m; Net debt: adjusted EBITDA improves marginally to 1.64 times
- Significant maiden resource declared at Nuevo Chaquiro deposit in Colombia
Quarter Nine months
ended ended ended ended ended
Sep Jun Sep Sep Sep
2014 2014 2013 2014 2013
US dollar / Imperial
Operating review
Gold
Produced - oz (000) 1,128 1,098 1,043 3,280 2,876
Sold - oz (000) 1,101 1,088 1,062 3,286 2,902
Price received (1) - USD/oz 1,281 1,289 1,327 1,287 1,455
All-in sustaining costs (2) - USD/oz 1,036 1,060 1,155 1,030 1,239
All-in costs (2) - USD/oz 1,144 1,192 1,408 1,150 1,562
Total cash costs (3) - USD/oz 820 836 809 810 865
Financial review
Gold income - USDm 1,295 1,321 1,374 3,940 4,079
Cost of sales - USDm (1,052) (1,064) (1,064) (3,130) (3,104)
Total cash costs (3) - USDm 864 874 815 2,516 2,436
Production cost (4) - USDm 877 894 865 2,578 2,518
Adjusted gross profit (5) - USDm 243 257 310 811 975
Gross profit - USDm 273 252 276 820 1,041
Profit (loss) attributable to equity shareholders - USDm 41 (80) 1 - (1,925)
- cents/share 10 (20) 0 0 (496)
Headline earnings (loss) - USDm 44 (89) (18) (7) 354
- cents/share 11 (22) (5) (2) 91
Adjusted headline earnings (loss) (6) - USDm 2 (4) 576 117 553
- cents/share 0 (1) 148 29 142
Net cash flow from operating activities - USDm 320 336 319 1,007 815
Capital expenditure - USDm 261 311 448 846 1,516
Notes: 1. Refer to note C "Non-GAAP disclosure" for the definition. 5. Refer to note B "Non-GAAP disclosure" for the definition.
2. Refer to note D "Non-GAAP disclosure" for the definition. 6. Refer to note A "Non-GAAP disclosure" for the definition.
3. Refer to note E "Non-GAAP disclosure" for the definition.
4. Refer to note 3 of note for the quarter and nine months USD represents US dollar, unless otherwise stated.
ended 30 September 2014. Rounding of figures may result in computational discrepancies.
Certain statements contained in this document, other than statements of historical fact, including, without limitation, those concerning
the economic outlook for the gold mining industry, expectations regarding gold prices, production, cash costs, all-in sustaining costs,
all-in costs, cost savings and other operating results, return on equity, productivity improvements, growth prospects and outlook of
AngloGold Ashanti's operations, individually or in the aggregate, including the achievement of project milestones, commencement and
completion of commercial operations of certain of AngloGold Ashanti's exploration and production projects and the completion of acquisitions
and dispositions, AngloGold Ashanti's liquidity and capital resources and capital expenditures and the outcome and consequence of any
potential or pending litigation or regulatory proceedings or environmental health and safety issues, are forward-looking statements
regarding AngloGold Ashanti's operations, economic performance and financial condition. These forward-looking statements or forecasts
involve known and unknown risks, uncertainties and other factors that may cause AngloGold Ashanti's actual results, performance or
achievements to differ materially from the anticipated results, performance or achievements expressed or implied in these forward-
looking statements. Although AngloGold Ashanti believes that the expectations reflected in such forward-looking statements and forecasts
are reasonable, no assurance can be given that such expectations will prove to have been correct. Accordingly, results could differ
materially from those set out in the forward-looking statements as a result of, among other factors, changes in economic, social and
political and market conditions, the success of business and operating initiatives, changes in the regulatory environment and other
government actions, including environmental approvals, fluctuations in gold prices and exchange rates, the outcome of pending or future
litigation proceedings, and business and operational risk management. For a discussion of such risk factors, refer to AngloGold Ashanti's
annual report on Form 20-F for the year ended 31 December 2013, which was filed with the United States Securities and Exchange Commission
("SEC") on 14 April 2014. These factors are not necessarily all of the important factors that could cause AngloGold Ashanti's actual
results to differ materially from those expressed in any forward-looking statements. Other unknown or unpredictable factors could also
have material adverse effects on future results. Consequently, readers are cautioned not to place undue reliance on forward-looking statements.
AngloGold Ashanti undertakes no obligation to update publicly or release any revisions to these forward-looking statements to reflect events
or circumstances after the date hereof or to reflect the occurrence of unanticipated events, except to the extent required by applicable law.
All subsequent written or oral forward-looking statements attributable to AngloGold Ashanti or any person acting on its behalf are qualified
by the cautionary statements herein.
This communication may contain certain "Non-GAAP" financial measures. AngloGold Ashanti utilises certain Non-GAAP performance measures and
ratios in managing its business. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the reported
operating results or cash flow from operations or any other measures of performance prepared in accordance with IFRS. In addition, the
presentation of these measures may not be comparable to similarly titled measures other companies may use. AngloGold Ashanti posts information
that is important to investors on the main page of its website at www.anglogoldashanti.com and under the "Investors" tab on the main page.
This information is updated regularly. Investors should visit this website to obtain important information about AngloGold Ashanti.
Operations at a glance
for the quarter ended 30 September 2014
Adjusted
Production All-in sustaining costs(1) Total cash costs(2)
gross profit (loss)(3)
Year-on-year Qtr on Qtr Year-on-year Qtr on Qtr Year-on-year Qtr on Qtr Year-on-year Qtr on Qtr
oz (000) % Variance(4) % Variance(5) USD/oz % Variance(4) % Variance(5) USD/oz % Variance(4) % Variance (5) USDm USDm Variance(4) USDm Variance(5)
SOUTH AFRICA 314 (5) (2) 1,115 (2) 5 902 6 5 47 (29) (11)
Vaal River Operations 107 (12) (11) 1,153 (5) 11 940 8 7 10 (14) (11)
Great Noligwa 17 - (23) 1,343 (11) 11 1,276 (2) 20 (2) 1 (4)
Kopanang 38 (14) (5) 1,211 (5) 2 993 3 (3) (1) (4) -
Moab Khotsong 52 (13) (12) 1,047 (3) 19 792 18 12 13 (11) (7)
West Wits Operations 153 3 6 1,007 (11) - 825 1 4 35 (2) -
Mponeng 92 5 5 898 (17) (3) 688 (9) (4) 35 6 5
TauTona 61 - 9 1,170 (3) 3 1,030 15 12 - (9) (5)
Total Surface Operations 52 (12) (5) 1,261 27 - 1,048 15 3 2 (13) -
First Uranium SA 23 (12) - 1,308 39 (18) 954 20 (9) (2) (5) 4
Surface Operations 29 (12) (9) 1,223 19 19 1,123 11 13 4 (7) (4)
Technology 2 100 100 - - - - - - - - -
INTERNATIONAL OPERATIONS 813 14 4 973 (13) (6) 789 - (4) 215 (18) 11
CONTINENTAL AFRICA 410 7 4 928 (19) (7) 799 (1) (6) 116 (14) 3
DRC
6
Kibali - Attr. 45% 65 100 59 580 100 (21) 563 100 (21) 27 27 23
Ghana
Iduapriem 45 (27) (4) 984 55 (1) 866 49 (5) 10 (26) -
Obuasi 78 15 22 1,169 (39) (18) 966 (11) (18) 15 23 12
Guinea
Siguiri - Attr. 85% 72 4 (10) 798 (23) (13) 741 (25) (5) 28 5 (6)
Mali
6
Morila - Attr. 40% 10 (17) - 1,660 44 42 1,525 101 34 (6) (13) (5)
Sadiola - Attr. 41% 6 21 5 (9) 1,062 (47) (1) 981 (44) 3 - 8 (1)
Yatela - Attr. 40% 6 2 (60) - 1,858 25 (34) 1,672 18 (13) (1) - 3
Namibia
Navachab - (100) (100) - (100) (100) - (100) (100) - (15) (9)
Tanzania
Geita 116 (9) 5 907 (1) 3 715 30 7 39 (28) (13)
Non-controlling interests,
4 4 (2)
exploration and other
AUSTRALASIA 152 145 (2) 980 (38) (6) 861 32) 1 24 35 2
Australia
Sunrise Dam 68 10 10 1,116 (9) (27) 982 17) (25) 6 10 22
Tropicana - Attr. 70% 84 100 (10) 800 100 16 721 100 45 23 23 (21)
Exploration and other (5) 2 1
AMERICAS 251 (7) 10 1,035 8 (4) 730 11 (5) 76 (38) 8
Argentin
Cerro Vanguardia - Attr. 92.50% 62 (2) - 956 16 2 656 7 (4) 20 (14) (3)
Brazi
AngloGold Ashanti Mineração 101 (2) 15 1,037 4 (1) 699 16 (3) 34 (3) 3
Serra Grande 32 (9) 7 1,097 12 (9) 803 13 (9) 3 (10) 2
United States of Americ
Cripple Creek & Victor 56 (19) 14 1,075 7 (12) 827 11 (8) 18 (11) 7
Non-controlling interests,
1 (1) (1)
exploration and other
OTHER - 2 4
Sub-total 1,128 8 3 1,036 (10) (2) 820 1 (2) 262 (45) 5
Equity accounted investments included above (19) (22) (19)
AngloGold Ashanti 243 (67) (14)
(1) Refer to note D under "Non-GAAP disclosure" for definition
(2) Refer to note E under "Non-GAAP disclosure" for definition
(3) Refer to note B under "Non-GAAP disclosure" for definition
(4) Variance September 2014 quarter on September 2013 quarter - increase (decrease).
(5) Variance September 2014 quarter on June 2014 quarter - increase (decrease).
(6) Equity accounted joint ventures.
Rounding of figures may result in computational discrepancies.
Financial and Operating Report
OVERVIEW FOR THE QUARTER
AngloGold Ashanti again maintained its strong momentum in achieving its five key business objectives, namely: improving safety and
sustainability; enhancing financial flexibility; optimising overhead and operating costs and capital expenditure; improving the quality of its
portfolio; and maintaining long-term optionality in the business.
Importantly, progress made on those areas again supported the key objective of sustainably improving free cash flow. Despite a 3%
decline in the average gold price received from a year earlier to USD1,281/oz, an improved production performance and lower all-in
sustaining costs, helped drive net debt marginally lower to USD2,952 million, from USD3,008 million a year earlier and USD2,994 million the
previous quarter.
Another strong operating performance across each of the company's operating regions helped an 8% improvement in output year-on-
year to 1.128Moz, ahead of guidance levels of 1.06Moz to 1.09Moz. This performance came despite the loss of 30,000oz related to the
earthquake on 5 August that interrupted the Vaal River Operations in South Africa for several days while the mines were idled to allow
aftershocks to subside and repairs to be affected.
All-in sustaining costs (AISC) were USD1,036/oz, 10% lower than the same period last year of USD1,155/oz. Total cash costs of USD820/oz were
marginally higher at 1% compared to USD809/oz recorded in the same quarter last year, and were better than guidance of USD850/oz to
USD890/oz, despite ongoing inflationary challenges in several key jurisdictions including South Africa, Continental Africa and South
America. Corporate and marketing costs of USD24m were 43% lower year-on-year, while exploration and evaluation costs of USD37m were
33% lower over that period. The improved performance reflected the benefit of a full quarter with Kibali and Tropicana in the operating
line-up, as well as an ongoing focus on overhead- and direct-cost management through the Project 500 programme, continued capital
discipline and the benefit of weaker currencies against the US dollar in Brazil, South Africa and Australia.
These strong fundamental improvements once again helped offset the lower gold price, helping to maintain cash flow from operating
activities compared to the same period last year. Adjusted Earnings Before Interest Depreciation and Amortisation (adjusted EBITDA)
increased to USD400m from USD327m in the third quarter of 2013, reflecting an improvement in the adjusted EBITDA margin from 24% a year
ago, to the current 31%. The key ratio of net debt to adjusted EBITDA improved to 1.64 times for the twelve month period ended 30
September 2014, from 2.02 times for the twelve month period ended 30 September 2013, and 1.73 times for the twelve month period
ending 30 June 2014.
Once again, this significant improvement in operating performance was made alongside another record safety performance. AngloGold
Ashanti recorded its second fatality-free quarter in succession, the first time in the company's history that this has been achieved. In
addition, all other safety metrics reached their best levels ever, an achievement all the more noteworthy given the potential dangers
posed by the earthquake. In the event, all 3,300 employees working underground at the time were safely lifted to surface, with only a
handful of minor injuries reported.
Summary table comparing 2014 performance to date with the same periods last year:
Q3 2014 Q3 2013 Improved YTD Sep YTD Sep Improved
Q14 vs 2014 2013 YTD vs
Q13 YTD
Gold price received (USD/oz) 1,281 1,327 (3%) 1,287 1,455 (12%)
Gold Production (koz) 1,128 1,043 8% 3,280 2,876 14%
Total cash costs (USD/oz) 820 809 1% 810 865 (6%)
Corporate and marketing costs* (USDm) 24 42 (43%) 68 165 (59%)
Exploration and evaluation costs (USDm) 37 55 (33%) 99 214 (54%)
Capital expenditure (USDm) 261 448 (42%) 846 1,516 (44%)
All-in sustaining costs**(USD/oz) 1,036 1,155 (10%) 1,030 1,239 (17%)
All-in costs**(USD/oz) 1,144 1,408 (19%) 1,150 1,562 (26%)
Cash inflow from operating activities (USDm) 320 319 0% 1,007 815 24%
Adjusted EBITDA (USDm) 400 327 22% 1,258 1,123 12%
Free cash flow (USDm) 30 (222) 114% 86 (950) 109%
* including administration and other expenses.
** World Gold Council Standard, excludes stockpiles written off.
CORPORATE UPDATE
"Our operations are firing on all cylinders," Chief Executive Officer Srinivasan Venkatakrishnan, said. "We've prioritised and have started
working on a range of self-help measures to generate cash from within current operating base to further deleverage the balance sheet
over the medium term. We will also consider the sale or partnership of an operating asset, if required."
On 10 September 2014, AngloGold Ashanti announced, for consultation with its shareholders, a proposed corporate restructuring and
capital raising. The restructuring proposed creating a London-listed entity to house the company's international assets with the South
African assets remaining at AngloGold Ashanti, thus creating two simpler and more focused entities. The proposed capital raising would
have reduced debt levels in order to leave the South African entity debt free (with the exception of existing guarantees by Anglogold
Ashanti of debt that would have remained outstanding) and leave the international entity with sustainable debt levels that could be
supported by its own cash flows.
This proposal was withdrawn on 15 September, after engagement with holders of the majority of the shares in the company. While there
was broad support for the strategic logic of the restructuring, a number of shareholders expressed concerns about certain aspects of the
proposed transactions, in particular the quantum of the equity capital raising needed to enable the restructuring to be implemented in
accordance with regulatory and other requirements.
The withdrawal of the restructuring proposal means there is no need for the quantum of deleveraging, required to facilitate the
separation of the company. Furthermore, maturities of AngloGold Ashanti's major debt facilities are long-dated, with revolving credit
facilities – most of which are currently undrawn -- maturing only in 2019, and the first bond maturities a year later, in 2020. Net debt to
adjusted EBITDA at current levels of about 1.6 times is well within covenant limits of 3.5 times. In addition, the continued restructuring of
the company's cost base and improvements in the quality of the portfolio, have helped the company deliver modest free cash generation
in each of the last three quarters, despite the lower gold price. Liquidity is currently adequate with cash available, access to commercial
paper markets and the undrawn portions of the company's bank facilities (USD1bn in US dollar RCF and roughly AUSD151m undrawn in our
Australian dollar RCF).
While pro-actively reducing current debt levels and improving overall balance sheet flexibility remain important objectives for
management in the medium term, AngloGold Ashanti has intensified its focus on prioritising value creation opportunities deliverable
from within its current structure. The company plans to continue to aggressively identify and implement further operational efficiencies,
reduce overhead cost structures and pursue other initiatives to improve underlying business performance.
The company also intends to explore other opportunities to strengthen its balance sheet including portfolio simplification, sale or the
entry into partnerships with respect to its Colombian portfolio and Obuasi mine in Ghana and, could potentially consider the sale or joint
venture of other operating assets for fair value. AngloGold Ashanti's medium-term aspirational target would be to prioritise the use of
proceeds from such actions to reduce debt by about USD1bn over the medium-term in order to lower its leverage ratio to less than 1.5
times net debt to adjusted EBITDA.
SAFETY
For the first time ever, AngloGold Ashanti reported two consecutive quarters without a single workplace fatality. This is a significant
achievement for a South African deep-level mining major, and shows what is possible when total commitment by a group of people
comes together with the correct culture, procedures and support. AngloGold Ashanti's overall workplace safety continues to show strong
improvement across several metrics, with the broadest measure of progress – all injury frequency rates and lost-time injury frequency
rates – remaining at record low levels. Seven of our operating and major exploration sites have now passed nine months without a
single lost time injury, while continued improvements at several other operations have allowed new safety benchmarks to be set.
Ongoing process, management and behavioural improvements have helped more than halve the number of safety incidents since 2007.
While we are immensely proud of this achievement, which is the result of hard work over several years, we fully realise that there is no
room for complacency while injuries occur on mine sites. We recognise, however, that to the end of September 2014 our record of no
fatalities related to so-called ‘fall-of-ground' incidents continued for more than a year as at the quarter end. In addition, nine of our
operating entities ended the quarter with no lost time injuries and six have that record intact for the first nine months of the year. We
continue to look for new ways to keep safety at the forefront of everything we do and continue to focus on managing our major hazards,
and understanding what we call ‘high potential incidents,' which may have resulted in death or serious injury.
FINANCIAL AND CORPORATE REVIEW
Cash inflow from operating activities of USD320m for the three months to 30 September 2014 was similar to the USD319m of the same quarter
in 2013, despite the lower gold price received. Free cash flow of USD30m after all expenditures, compared to the total outflow of USD222m in
the period a year ago, highlighting significant operating and cost improvements across a broad front.
Adjusted headline earnings (AHE) were USD2m in the three months to 30 September 2014, compared with USD576m or 148 US cents per
share a year earlier, when AHE reflected a USD567m realised fair value gain on a three-year convertible bond. The USD2m AHE for the
quarter under review reflects fees related to the accelerated amortisation of the USUSD and AUSD RCF (USD7m), operational and corporate
redundancies (USD36m), operational closure and termination costs (USD7m), non-cash provisions relating to stockpiles and consumable
inventories (USD6m) and indirect taxes and legal provisions (USD8m).
By removing the impact of the above adjustments the normalised AHE for the period, therefore, would be USD66m, or 16 US cents a share,
based on the weighted average number of shares of 406 million compared with USD110m or 28 cents in the corresponding quarter of 2013.
This was due to a lower gold price, annual inflationary increases, higher amortisation and taxation due to more withholding taxes on
non-recurring taxation credits partially offset by weaker local currencies, savings in corporate and exploration expenditure and lower
finance costs. The normalised AHE for the September 2014 quarter is lower than June 2014 quarter at USD76m or 19 cents per share,
mainly impacted by cost inflationary increases, notably the South African wage increases and winter power tariffs.
Net profit (loss) attributable to equity shareholders for the third quarter of 2014 was USD41m, compared to USD1m a year earlier.
Operational performance for the third quarter was strong with both production and costs coming in better than market guidance.
Production was 1.128Moz at an average total cash cost of USD820/oz, compared to 1.043Moz at USD809/oz a year earlier and 1.098Moz at
USD836/oz the previous quarter. Guidance for the third quarter was 1.06Moz to 1.09Moz oz at a total cash cost of USD850-890/oz. This
included a 30,000oz loss of production at our Vaal River Operations due to the earthquake. Costs overall benefited from higher output,
weaker currencies and continued benefits from a range of cost saving initiatives.
Production from the South African operations fell by 5% to 314,000oz in the third quarter of 2014, due to the impact of the earthquake.
During the third quarter of 2014 production from the International Operations increased 14% to 813,000oz from 714,000oz in the third
quarter of 2013, despite no contribution from Navachab following its sale in June 2014, and the continued wind-down of production from
Obuasi. Within the international portfolio, Continental Africa was 7% higher at 410,000oz for the third quarter of 2014, compared to
383,000oz in the third quarter of 2013. Year-on-year, Australia more than doubled from 62,000oz to 152,000oz following the addition of
Tropicana, while the Americas dropped marginally to 251,000oz from 270,000oz , due mainly to declines in production from the Cripple
Creek & Victor mine.
All-in sustaining costs (AISC), excluding stockpile write offs, were USD1,036/oz, a 10% improvement year-on-year, and 2% lower than the
previous quarter due to lower total cash costs and an increase in gold sold. The year-on-year decline in AISC was due to the higher
ounces sold, lower corporate and exploration costs as well as lower sustaining capital expenditure. Total cash costs for the third quarter
of 2014 increased USD11/oz compared to the same period in the previous year, from USD809/oz to USD820/oz. The higher total cash costs,
given the two new mines – Kibali and Tropicana -- include fuel and power costs and service costs, partly offset by significant
improvements from a combination of cost saving initiatives, currency weakness, removal of some marginal and loss-making production
and higher output in some areas. Total capital expenditure during the third quarter was USD261m (including equity accounted joint
ventures), compared with USD448m in the third quarter of 2013 and USD311m the previous quarter. Of the total capital spent, project capital
expenditure during the quarter amounted to USD84m. Free cash flow after all outgoing expenditures including interest and tax, improved
from negative USD222m a year earlier to a positive USD30m in the third quarter, reflecting declining capital expenditures, improved costs and
higher production.
At the end of the third quarter of 2014, net debt was USD2,952m compared to USD3,008m a year earlier, and USD2,994m in the second quarter,
resulting in an improvement in net debt to adjusted EBITDA ratio to 1.64 times, compared with 1.73 times in the previous quarter and
2.02 times a year ago.
OPERATIONAL HIGHLIGHTS
The South African operations produced 314,000oz at a total cash cost of USD902/oz during the third quarter of 2014 compared to
329,000oz at total cash cost of USD851/oz in the third quarter of 2013. Production was adversely impacted by the 5.3 magnitude
earthquake which struck South Africa's North West province on the 5 August 2014, and the time taken in its aftermath to allow
aftershocks to subside and then to effect repairs. Total cash costs increased due to labour inflationary increases and seasonal electricity
tariffs that were effective from the second half of the year. However, these costs were partially offset by cost savings from Project 500
initiatives.
At West Wits, production was 153,000oz at total cash cost of USD825/oz during the third quarter of 2014 compared to 149,000oz at total
cash cost of USD814/oz during the third quarter of 2013. The third quarter's performance reflected an improvement on the back of seismic
related activities and safety stoppages. Mponeng delivered a 5% improvement in production compared to the same quarter of 2013 as a
result of a slight reduction in stope-widths and an increased overall grade due to lower intake of marginal ore tonnages. Despite annual
inflationary increases, total cash costs decreased by 9% year-on-year. Mponeng was the lowest cost producer for the South African
region at a total cash cost of USD688/oz. The concerted effort at TauTona on value accretive energy initiatives continues to achieve
encouraging results. These initiatives include wastage elimination, rescheduling activities such as pumping to take place during non-
peak shift hours, continuous monitoring of water arrival and specific attention is given to identifying and repairing air leaks.
Production from the Vaal River operations decreased in the third quarter of 2014 to 107,000oz at total cash cost of USD940/oz, compared
to 122,000oz at total cash cost of USD867/oz in the third quarter of 2013. Great Noligwa and Moab Khotsong were most severely impacted
by the earthquake whilst Kopanang was impacted by safety related disruptions. Underground assessments indicated that some of the
reef silos had cracked, while other relatively minor damage occurred to surface infrastructure and buildings. Overall, operations were
impacted by between five and ten days of no or partial production, depending on the damage at each of the affected sites.
Total Surface Operations production for the third quarter of 2014 was 52,000oz at total cash cost of USD1,048/oz, compared to 59,000oz
at total cash cost of USD915/oz in the third quarter of 2013. Processing of marginal ore dump material at some reclamation sites was
discontinued as grades were below cut-off. In mitigating this, an extensive drilling program was started at the reclamation sites to
improve knowledge of mineralogy and grade. Current reagent dosage rates and metallurgical parameters are being optimised.
Commissioning of the uranium plant at Mine Waste Solutions has commenced and is expected to be completed by year-end.
The Continental Africa region for the third quarter of 2014 produced 410,000oz at total cash cost of USD799/oz compared to 382,000oz at
total cash cost of USD804/oz in the third quarter of 2013; the increase in production was mainly due to the contribution from Kibali.
In Ghana, Iduapriem's production for the third quarter of 2014, was 45,000oz at total cash costs of USD866/oz compared to 62,000oz at
total cash cost of USD580/oz in third quarter of 2013. Production decreased in line with production plan which is focused on treating lower
grade stockpile material. At Obuasi, production for the third quarter of 2014 was 78,000oz at total cash cost of USD966/oz, compared to
68,000oz at total cash cost of USD1,082/oz in third quarter of 2013. Production increased and total cash costs improved due to an increase
in tonnage throughput from both underground and surface sources.
In the Republic of Guinea, Siguiri's production for the third quarter of 2014 was 72,000oz at total cash cost of USD741/oz compared to
69,000oz at total cash costs of USD987/oz in third quarter of 2013. Production improved despite depleting higher grade ore sources. Total
cash costs decreased as a result of cost management through renegotiation of fuel supply contracts and other efficiency benefits.
In Mali, Morila's production was down at 10,000oz at total cash costs of USD1,525/oz. Costs increased as a result of a non-cash gold-in-
process inventory expense as the gold locked up in the plant in the previous period was released. Sadiola's production was 21,000oz
at total cash cost of USD981/oz as a result of a decrease in recovered grade due to lower volumes of oxide material accessed from the
primary ore sources. Yatela's production was down to 2,000oz in line with the closure plan. Total cash costs were USD1,672/oz.
In Tanzania, Geita's production for the third quarter of 2014 was 116,000oz at total cash cost of USD715/oz compared to 127,000oz at
total cash cost of USD549/oz in third quarter of 2013. Production was lower as a result of a 19% decrease in recovered grade, partly offset
by a 14% increase in tonnage throughput, which also negatively impacted on costs. Production was higher in the third quarter of 2013
due to higher grade ore sourced from the Star & Comet pit which has now been depleted. Going forward, production is expected to
improve as a result of increased tonnage throughput with the consistency in the mill running time and improved mill productivity from a
softer ore blend delivered to the plant. The increase in total cash costs was in line with the annual operational plan as a result of higher
mining costs incurred in the quarter. In addition, AngloGold Ashanti is investigating a move to switching Geita from an owner-operator
model to a contractor operated model in the new year, to take advantage of a relatively attractive market for mining contracts and to
improve ongoing cash flow by removing some future capital commitments.
In the Democratic Republic of the Congo, production in Kibali was 65,000oz at total cash costs of USD563/oz. The 59% increase in
production over the previous quarter was due to successful efforts to overcome operational challenges encountered with the
commissioning of the Sulphide Circuit, as well as plant availability on the Oxide Circuit. Production was also assisted by a 29%
improvement in throughput and increased milled head grade.
The Americas region, for the third quarter of 2014, produced 251,000oz at total cash cost of USD730/oz compared to 270,000oz at total
cash cost of USD656/oz in the third quarter of 2013.
In the United States, Cripple Creek & Victor's production for the third quarter of 2014 was 56,000oz at total cash cost of USD827/oz
compared to 69,000oz at total cash cost of USD744/oz in the third quarter of 2013. Production decreased partially due to a change in the
ore stacking plan. A delay in receiving certification for a section of an exposed liner led to the heap leach stacking plan being modified
resulting in deferred production as ore was placed deeper in the leach pad in the first half of the year and shallower in the second half.
In addition, production was negatively affected by lower ore-grade mined and fewer tonnes crushed due to more clay in the ore, thereby
impacting negatively on total cash costs in addition to lower gold placement.
In Argentina, Cerro Vanguardia´s gold production for the third quarter of 2014 was 62,000oz at a total cash cost of USD656/oz compared
to 63,000oz at total cash cost of USD614/oz in the third quarter of 2013. Production was negatively impacted by operational delays in
development causing decreased secondary development head grades and sequencing in the mine, thereby resulting in lower grade at
the underground mine compensated by higher tonnes treated. Although costs benefited from the weaker exchange rate, this was offset
by lower by-product sales and lower deferred stripping adjustment.
In Brazil, production for the third quarter of 2014 was 133,000oz at a total cash cost of USD724/oz compared to 138,000oz at a total cash
cost of USD629/oz in the third quarter of 2013. At AngloGold Ashanti Córrego do Sítio Mineração, production for the third quarter of
2014 was 101,000oz at total cash cost of USD699/oz compared to 103,000oz at total cash cost of USD602/oz in the third quarter of 2013.
Production was impacted by operational delays in high grade areas, changes in mining plan at Cuiabá Complex, and geotechnical
challenges at the new oxide pit. Work is underway to improve the mine's rock mechanics, change the mining method from cut-and-fill to
sub-level stoping and increase the contribution of Narrow Vein Ore Bodies (NV) from 15% of the mine's total, to 40%.
Also at Cuiaba, our exploration programme, the deep-level exploration programme confirmed the down-plunge extension of the ore
body as far as Level 24 at the MO mine (the Main Ore Body) and Level 26 at the NV mine, while high-grade quartz veins have been
intersected between Level 9 and Level 25. In addition, satellite ore bodies have been intersected close to the existing infrastructure.
These exploration successes will, potentially help add production in the both the short-term and over the life of mine.
At Serra Grande, production for the third quarter of 2014 was 32,000oz at total cash cost of USD803/oz, compared to 35,000oz at total
cash cost of USD709/oz in the third quarter of 2013. Production was down due to lower grades caused by differences in underground mine
sequencing, with higher grades anticipated in the latter part of the year. Costs were negatively impacted mainly by lower gold
production, local currency appreciation and ore stockpiles.
In Australia production for the third quarter of 2014 was 152,000oz at total cash cost of USD861/oz compared to 62,000oz at total cash cost
of USD1,270/oz in the third quarter of 2013. At Sunrise Dam production for the third quarter of 2014 was 68,000oz at total cash cost of
USD982/oz compared to 62,000oz at total cash costs of USD1,184/oz in third quarter of 2013. The increase in production was attributable to
favourable mill throughput with a record 616,000 tonnes of underground ore mined during this quarter whilst the underground mine
grade increased to 2.74g/t from the prior year's quarter's 2.20g/t. Total cash costs decreased due to the higher production as well as the
drawdown of ore stockpiles. The mine successfully completed the transition to underground operations following the closure of the Open
Pit.
Tropicana production for the third quarter of 2014 was 84,000oz at total cash cost of USD721/oz compared to 93,000oz at total cash cost
of USD498/oz in the previous quarter. Production decreased quarter-on-quarter as a result of lower mined and milled grades in July and
significant downtime in the mill for both planned maintenance and repairs. In addition, structural failure of the CIL Tank 7 (inter-tank
screen) support tubes occurred, causing part of the tank wall to buckle. Mill throughput was constrained by reduced availability of
process water during the quarter as a result of lower-than-expected production from the bore field. A number of new bores have been
drilled and commissioned but approvals are required to enable the development of further bores that will provide redundancy through
the hot summer months. Mining was also constrained while remediation of a wall slippage in the upper oxide zone in the Havana Pit
was carried out.
TECHNOLOGY AND INNOVATION UPDATE:
The Technology Innovation Consortium continued to advance in the main projects targeting the methodology to Safely mine, All the
Gold, Only the Gold, All the Time. During the third quarter of 2014, progress on key technologies that seek to establish the base for a
safe, automated mining method intended for selective use at AngloGold Ashanti's deep-level underground mining operations is as
follows:
1. Reef Boring
- TauTona mine – Test site:
Eleven holes were drilled during the quarter. Due to the change in reef channel width, the holes were drilled at different
diameters ranging from 660mm up to 720mm. Improvement in the drilling theory remains a focus area and different
reamer cutter configurations were tested. Due to the reef channel increasing, more holes will be drilled with the 660mm
and 720mm reamers and further information obtained will evaluate the extent to which the reamers can be deployed at
the prototype sites.
- TauTona mine – Prototype sites
During the third quarter, the testing of three medium reef (width 40-80cm) Atlantis machines at 97 Level at the TauTona
mine commenced. Industrial and mechanical engineering support is being supplied to improve machine performance to
design expectations.
- Great Noligwa mine
Testing started on the new HPE narrow reef (0-40cm) machine and nine holes have been drilled to date. This method
of drilling requires a double pass drilling sequence where an initial pilot or direction hole is drilled which is followed by
a larger diameter cutter that reams the initial hole to a larger dimension. Drilling of the 115mm pilot holes was
successful with regards to drilling rate and direction. Reaming with 250mm and 350mm reamers however remains a
challenge as the softer footwall conditions associated with the C-reef ground are causing the cutter head to fall out of
the direction hole and into the non-gold bearing material below the reef. Modifications are now being assessed.
- Site Equipping:
Site equipping of the 2014 prototype sites were completed. Work continues to equip future 2015 sites.
- Machine Manufacturing:
All four medium reef (width 40-80cm) machines and the two small reef (width 0-40cm) machines have been
manufactured and delivered to the relevant mines. The last of the medium reef machines (Moab Khotsong) as well as
the small reef machines (Kopanang) have been delivered to both mines. Testing on these machines has started.
2. Ore body Knowledge and Exploration
Trial 5 was completed in the third quarter. Rotary Percussion (RP) drilling was compared to Reverence Circulation (RC) drilling,
which was conducted during trials 1 to 4. A total of three holes were drilled with the average rate increasing from a previous
12.7m/hr to a new average of 13.3m/hr, with no improvement in the drilling accuracy. Trial 6 will continue in the last quarter of the
year using the RC drilling method. The new compressor will lead to an increase in the operating air pressure which will in turn
improve the drilling rate to greater depths. Additionally rod stabilisers will be tested to ensure better accuracy as this remains a
critical part of concluding a successful drilling solution.
3. Ultra High Strength Backfill (UHSB)
Alterations were made to the underground UHSB plant installed at TauTona mine to enhance the efficiency of the system. All
available reef bored holes in the prototype testing block and test site have been filled. A software data logging system was installed
and commissioned in the prototype testing site as part of the on-going process to install instrumentation. The focus will now be to
integrate and process the data from the instrumentation, which is installed in the backfilled holes to monitor the backfill and rock
mass response. Installation of an acoustic monitoring system commenced to additionally monitor the rock mass response during
drilling and will be tested during the last quarter of the year.
Civil engineering preparation work for the tailings drying plant commenced on surface at TauTona mine. The work is progressing
as scheduled and the plant will be commissioned during the last quarter of the year. Surface testing to develop a pumping solution
towards a 1,000m horizontal distance target is still in progress and work will continue into the next quarter.
PROJECT UPDATE
The CC&V mine life extension project (MLE2) includes a High Grade Mill and a new Valley Leach Facility and associated gold recovery
plant. The High Grade Mill is 87% complete as of the end of the third quarter 2014 and is planned to complete construction and start
production in the fourth quarter of 2014. All major mill equipment has been set in place and the remaining work is largely piping and
electrical. The new Valley Leach facility and associated gold recovery plant are scheduled to start production in 2016.
In Kibali, the construction of the metallurgical facility was materially completed at the end of the third quarter of 2014 with only punching
against agreed lists taking place. In respect of the hydropower projects, three of the four turbines at Nzoro2 are now consistently
utilised within the operation's power grid with hydropower utilisation improving during the quarter, although not yet at optimum
levels. Construction of the second station, Ambarau, has commenced and is expected to be completed in 2015. The construction of
the paste backfill plant is on schedule for completion and commissioning at the end of the first quarter in 2015. The development of the
decline shaft system continued well during the quarter and remains ahead of plan with focus on the ventilation infrastructure and the
completion of the main pump station.
The Resettlement Action Plan (RAP) of the Roman Catholic Church has been completed during the third quarter of 2014. A new
moratorium was entered into with the Provincial Governor during the quarter, extending the current Exclusion Zone to include the Mofu
and Gorumbwa deposits. A limited RAP will occur with affected families around the Mofu pit and is expected to be completed by the
fourth quarter of 2014 whilst the Gorumbwa RAP is planned to be completed by the end of 2015.
Capital expenditure for the quarter amounted to USD76.2 million and totals USD291.1 million for the year to date (at 100%). The capital
estimate for phases 1 and 2 of the project remains in line with previous guidance, with phase 1 expected to be completed by the end of
the 2014 year.
At Obuasi, the decline project advanced 968m in the third quarter of 2014 with the total project advance of 6,311m. The decline is now
at the 18Level, which equates to 1,800' (or 600m) below surface, with a final project depth of 5,000' (or 1,500m) below surface. Until
August 2014, the decline was being advanced from multiple locations in order to speed up advance. This has worked very effectively
and now that these headings have joined, the project has reduced to a single jumbo to focus on the development through to 26Level
which will enable decline access to two main production blocks, i.e. Sansu 3 and Block 8Level.
The transition to the Limited Operating state as defined in the APMO (Amendment to the Programme of Mining Operations) continued,
with the application submitted to Government in July and the planning is well advanced. Government requested an extension to mid-
November to submit their comments. The Workforce strength as at the end of the third quarter 2014 was 2,723 and a phased
retrenchment programme is continuing until the APMO approval is received. The Feasibility Study to support a business case for
ongoing investment into Obuasi to transform the operation into a more modern, productive and cost effective operation is well advanced
and expected to be completed early in 2015.
EXPLORATION
Total expensed exploration and evaluation costs (including technology) during the third quarter, inclusive of expenditure at equity
accounted joint ventures, were USD40m (USD9m on Brownfield, USD13m on Greenfield and USD18m on pre-feasibility studies), compared to USD77m
during the same quarter the previous year.
GREENFIELDS EXPLORATION
During the third quarter of 2014, focussed Greenfields exploration activities were undertaken in Australia, Colombia and Guinea, while
minor work was also completed in Brazil. Greenfields Exploration completed 8,427m of diamond and RC drilling.
In Colombia, exploration success continued at the Nuevo Chaquiro project, a joint venture with B2Gold (AGA 88.5%). During the quarter
5,400m of diamond drilling, in six holes was carried out with two drill rigs. AGA has been successful in further definition of a higher
grade zone and is now focussed on its extensions. AGA is pleased to announce a maiden Inferred Resource estimate for Nuevo
Chaquiro of 604Mt at an average grade of 0.65% copper, 0.32g/t gold, 4.38g/t silver and 116ppm molybdenum for a contained metal
content of 3.95Mt copper, 6.13Moz gold, 85.2Moz silver and 70Kt molybdenum.
In Australia (WA), 15,309m of aircore drilling tested various Greenfields targets at the Tropicana JV (TJV). Aircore drilling at the Madras
prospect has returned encouraging results and a ground geophysics survey is planned to better delineate targets ahead of RC/DDH
drilling in Q4. In New South Wales, AGA has withdrawn from the Nyngan Earn-in and Joint Venture Project. Also in New South Wales,
at the new Mullion Project (AGA 100%), stakeholder engagement has commenced in preparation for conducting on-ground exploration
activities.
In Guinea, exploration work continued in Siguri Blocks 2 and 3 (AGA 85%) until 20 July after which work was suspended due to Ebola in
the immediate region. On the Kounkoun trend (Block 3) 2,616m of RC drilling was completed to test the continuation of mineralisation
between KK1 and KK2. All the assay results (4,443 results from 27 holes) were received and confirmed the continuity of mineralisation
between KK1 and KK2. However, the gold grade is lower and the width of mineralisation is narrower away from KK1 and towards KK2.
At the Gueleni prospect (Block 2) and at Foulata North (Block 2) all outstanding assay results were received during the quarter with no
significant intersections reported.
In Brazil site preparation and logistics continued for diamond drilling during the upcoming quarter at the Pe Quente Project, part of the
Graben Joint Venture in Mato Grosso State. This drilling will test three priority targets generated by ground geophysics and supported
by structural and geochemical evidence.
BROWNFIELDS EXPLORATION
A total of 102,440m of diamond and RC drilling was completed during the third quarter of 2014.
In South Africa, four deep surface drilling sites were in operation during the quarter, one on the Moab Khotsong and three at Mponeng
(WUDLs). Diamond drilling continued at MZA10 and the hole is currently at 1,950m. This hole is targeted to provide value information in
the lower reaches of the early gold portion of Project Zaaiplaats. The rehabilitation for UD51 has been completed. UD59 advanced well
during the quarter and reached a depth of 3,172m in the Edenville Formation lava's. Redrill at UD60 has advanced to 1,814m. The
diamond rig has been erected at UD58A and the hole is currently being straightened and is at a depth of 876m compared to 291m in the
previous quarter. Poor ground conditions are hampering the progress of the hole.
In Tanzania at Geita Gold Mine exploration focused on infill drilling programmes at Geita Hill West (77m RC), Nyankanga Cut 8 (140m)
and the Star and Comet Cut2/3 gap (1,168m). Mineral Resource extension drilling continued at Star & Comet Deeps (1,888m). Assay
results from infill drilling programmes undertaken in the previous quarter were received for Geita Hill West and Geita Hill East. In
general, these intersections confirmed ore zones to be as modelled. Initial results were also obtained for the Star and Comet Cut/2/3
gap area.
In September a first pass mapping exercise was conducted around P30 area to improve the understanding of the geology and
mineralisation, and assess the target for follow-up work. P30 is located along the supracrustal sequence (including BIF) to the west of
Nyankanga/Kalondwa Hill. Grab samples from breccia within the folded BIF/chert ironstones and tuffaceous rocks returned significant
values and the area has been subject to ASM activities.
In Guinea, at Siguiri Gold Mine, a total of 40 holes were completed with 3,327m during the third quarter of 2014, comprised of 2,385m
RC infill drilling at Sokunu, and 942m AC drilled to sterilise the new return water dam site. No significant intersepts were obtained in the
sterilisation drilling. Two RC drilling programmes were carrying out at Sokunu, one (540m) aimed to test below-pit continuation of
mineralisation; the second (1,845m) was infill drilling focused on adding and upgrading the Mineral Resource on the south-western edge
of the Sokunu Pit. Most assays have been returned and several holes from the south-western drilling returned positive results. Further
drilling is required to complete the programme.
In Ghana, at Obuasi Gold Mine a total of 880m of underground drilling was completed from the above 50 Level 41S-294W site. The infill
drilling program to increase confidence in portions of Block 9/Red Zone 6 currently classified as Inferred Mineral Resource has now
been completed. At Iduapriem, drilling was completed in the areas to the north of Blocks 1 and 2 to test areas identified in recent field
investigation and target generation work. The results from these traverses were disappointing with no conglomerates identified nor
significant intercepts. A programme of 35 shallow (6m) auger holes were drilled at Block 1 for a preliminary assessment of the grade of
the fill material in the pit with no assays returned to date. Block 3W mapping and grab sampling continued and defined a possible
extension towards Block 4 for follow-up work. Pitting was completed on the Heap Leach Pad for size fraction analysis.
In the Democratic Republic of Congo at Kibali, an updated Mineral Resource for Gorumbwa showed 3.51Mt @ 3.54g/t for 0.4Moz (at
0.5g/t cut-off) within the USD1000 pit shell, with 44% of the Mineral Resources being classified as Inferred. A Phase 3 drilling programme
was initiated during the quarter and aims to convert 91% of this Inferred Mineral Resource to Indicated Mineral Resource. 9 DD and 25
RC holes were completed during the quarter. Drilling results to date show good overall correlation with models. Most of these are from
holes below the old pit and up-plunge in the SW border of the old pit.
At KCD, four holes were completed on a 3000 Lode target over a 200m down-plunge gap on the NE border of the USD1000 pit. This area
was identified by geological interpretation of core and both pit and underground mapping as a possible extension of the high-grade 3104
Lode. Results are pending but visual indications of intense alteration and associated sulphide mineralisation generally support the
modelled ore zones. A program of 3RC holes were drilled within the USD1000 pit shell for bottle roll testwork at Mofu. Results are pending
but the drilling confirmed the geological model. 20RC sterilisation holes were also completed at Mofu over the proposed waste dump
area. Results are pending.
Regional work took place at several targets, comprising mapping, soil, pit and trench sampling. Trenching at Memekazi NE supports a
model of two zones of mineralisation associated with moderate silica alteration. Significant intersections in trenches at Aindi Watsa
indicate continuity of mineralisation over 200m strike, with a higher grade zone over 120m. Mineralisation is associated with a
brecciated, locally silica altered, chert horizon with thin intercalated magnetite lenses. At Rhino-Agbarabo, trenching was completed at
the Kombokolo SW and Rhino SE target with positive results. An historic Moto geotech hole close to the Kombokolo trench has been
logged and sampled.
In the Republic of Mali at Sadiola, RC drilling commenced in August 2014 (2,524 m). This included 1,054m on oxide targets at FE4
South East and Voyager East, which returned disappointing results. The remaining 1,470m was drilled as part of initial testing for
sulphide potential below the FE4 and FE3 pits, both of these programmes provided positive results and will be followed up. Further
drilling (1,358m) was completed on the marginal stockpile SP12 to reduce risk.
More fieldwork was conducted by the Centre for Exploration Targeting (CET), aimed at defining the structural framework for
mineralisation in FE3, FE4 and Tambali Pits. This work was then used in structural modelling and development of revised and extended
upside models to evaluate the potential for sulphide ore in these pits. Scoping studies are currently underway and will define potentially
economic targets for further exploration.
In Colombia, drilling, Mineral Resource modelling, and infrastructure studies continued to support the Pre-Feasibility Study at the
Gramalote Joint Venture. 2,295m were completed during the quarter. At La Colosa, drilling activities included 4,305m completed for
Mineral Resource infill and extension. Site investigation, hydrology and geotechnical drilling programmes continued.
At Sunrise Dam in Australia, all work was focussed on Mineral Resource definition (infill) and extension for the underground mine.
Diamond drilling targeted Vogue, GQ/MWS down-dip, Sunrise Shear Zone (SSZ) and Cosmo East domains. RC drilling was done in the
Vogue/Dolly/Dolly Corridor/Southern Midway Shear (MWS) domains with numerous significant intercepts reported from both diamond
and RC drilling. At Tropicana the planned 3D seismic survey to image the mineralised zone down dip of TGM was completed and data
delivery is scheduled for the fourth quarter of the year. During the third quarter of 2014 follow-up AC along with a limited RC/diamond
drilling campaign at the Tumbleweed prospect, 15km north of Tropicana Gold Mine was completed. AC drilling was also completed at
the Maple Leaf prospect. A diamond hole was drilled to test down-dip extents of mineralisation at Voodoo Child.
Detailed information on the exploration activities and studies both for brownfields and greenfields is available on the AngloGold Ashanti
website (www.anglogoldashanti.com).
OUTLOOK
Fourth Quarter
Production guidance is estimated to be between 1,100kozs to 1,140kozs at total cash costs of USD800/oz to USD820/oz, assuming average
exchange rates against the US dollar of 11.10 (Rand), 2.37 ( Brazil Real), 0.87 (AusUSD) and 8.87 ( Argentina Peso), with fuel at USD95/bl.
This outlook for the fourth quarter includes tapering production from Obuasi , as well as completion of the retrenchment programme at
the Obuasi mine, which is expected by year-end. The costs of retrenchment will impact both earnings and cash flows, but will be excluded
from the calculation of all-in sustaining costs.
As in prior years, the fourth quarter earnings will be distorted by year-end accounting adjustments such as reassessment of useful lives
and carry values of mining tangible assets, inventory stockpile and investments, reset of environmental rehabilitation provisions,
redundancy provisions, direct and indirect and deferred taxation provisions.
Full-year
Production guidance for the year is now between 4.35Moz to 4.45Moz, toward the top end of our initial guidance of 4.2Moz to 4.5Moz
after taking into account consistently strong production performances across the portfolio, despite the sale of the Navachab mine, the
tapering of production at Obuasi and losses following the earthquake in the third quarter.
Total cash costs are now anticipated to be USD775/oz to USD810/oz, which factors in the average exchange rates against the US dollar that
were stronger than initially anticipated at the beginning of the year, of 10.80 (Rand), 2.31 ( Brazil Real), 0.91 (AusUSD) and 8.21
(Argentina Peso), with fuel at USD103/bl.
For the year, AISC are still within the original guidance of USD1,025/oz to USD1,075/oz, taking into account reduced overheads and capital
expenditures.
Capital expenditure for the full year, is now expected to be USD1.25bn - USD1.30bn, initially forecast at USD1.35bn - USD1.45bn. Corporate,
costs are now forecast at approximately USD100m for the year, compared with the initial guidance of USD120m - USD140m, and Expenses exploration
and study costs are forecast at USD155m to USD165m, from initial guidance of USD150m - USD175m.
Other known or unpredictable factors could also have material adverse effects on our future results. Please refer to the Risk Factors
section in AngloGold Ashanti's Form 20-F for the year ended 31 December 2013 that was filed with the United States Securities and
Exchange Commission ("SEC") on 14 April 2014 and available on the SEC's homepage at http://www.sec.gov.
Independent auditor's review report on the Condensed Consolidated Financial Information for the quarter and nine
months ended 30 September 2014 to the Shareholders of AngloGold Ashanti Limited
We have reviewed the condensed consolidated financial statements of AngloGold Ashanti Limited (the company) contained in
the accompanying quarterly report on pages 12 to 26, which comprise the accompanying condensed consolidated statement of
financial position as at 30 September 2014, the condensed consolidated income statement, statement of comprehensive
income, statement of changes in equity and statement of cash flows for the quarter and nine months then ended, and selected
explanatory notes.
Directors' Responsibility for the Condensed Consolidated Financial Statements
The directors are responsible for the preparation and presentation of these condensed consolidated financial statements in
accordance with the International Financial Reporting Standard, (IAS) 34 Interim Financial Reporting as issued by the
International Accounting Standards Board (IASB), the SAICA Financial Reporting Guides, as issued by the Accounting
Practices Committee and Financial Reporting Pronouncements as issued by the Financial Reporting Standards Council , and
the requirements of the Companies Act of South Africa, and for such internal control as the directors determine is necessary to
enable the preparation of condensed consolidated financial statements that are free from material misstatement, whether due
to fraud or error.
Auditor's Responsibility
Our responsibility is to express a conclusion on these interim financial statements based on our review. We conducted our
review in accordance with International Standard on Review Engagements (ISRE) 2410, Review of Interim Financial
Information Performed by the Independent Auditor of the Entity. This standard requires us to conclude whether anything has
come to our attention that causes us to believe that the interim financial statements are not prepared in all material respects in
accordance with the applicable financial reporting framework. This standard also requires us to comply with relevant ethical
requirements.
A review of interim financial statements in accordance with ISRE 2410 is a limited assurance engagement. We perform
procedures, primarily consisting of making enquiries of management and others within the entity, as appropriate, and applying
analytical procedures, and evaluating the evidence obtained.
The procedures performed in a review are substantially less than and differ in nature from those performed in an audit
conducted in accordance with International Standards on Auditing. Accordingly, we do not express an audit opinion on these
financial statements.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the accompanying condensed
consolidated financial statements of the company for the quarter and nine months ended 30 September 2014 are not prepared,
in all material respects, in accordance with International Financial Reporting Standard, (IAS) 34 Interim Financial Reporting as
issued by the IASB, the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee and Financial
Reporting Pronouncements as issued by the Financial Reporting Standards Council and the requirements of the Companies
Act of South Africa.
Ernst & Young Inc.
Director – Roger Hillen
Registered Auditor
Chartered Accountant (SA)
102 Rivonia Road, Sandton
Johannesburg, South Africa
30 October 2014
Group income statement
Quarter Quarter Quarter Nine months Nine months
ended ended ended ended ended
September June September September September
2014 2014 2013 2014 2013
US Dollar million Notes Reviewed Reviewed Reviewed Reviewed Reviewed
Revenue 2 1,337 1,358 1,415 4,054 4,234
Gold income 2 1,295 1,321 1,374 3,940 4,079
Cost of sales 3 (1,052) (1,064) (1,064) (3,130) (3,104)
Gain (loss) on non-hedge derivatives and other
commodity contracts 30 (5) (34) 10 66
Gross profit 273 252 276 820 1,041
Corporate administration, marketing and other
expenses (24) (20) (42) (68) (165)
Exploration and evaluation costs (37) (33) (55) (99) (214)
Other operating expenses 4 (9) (7) (7) (21) (18)
Special items 5 (54) (17) (92) (78) (3,319)
Operating profit (loss) 149 175 80 554 (2,675)
Dividends received 2 - - - - 5
Interest received 2 6 6 8 17 24
Exchange gain (loss) 4 (8) 10 (11) 11
Finance costs and unwinding of obligations 6 (69) (71) (89) (211) (222)
Fair value adjustment on USD1.25bn bonds 20 (31) (46) (80) (46)
Fair value adjustment on option component of
convertible bonds - - - - 9
Fair value adjustment on mandatory convertible
bonds - - 44 - 356
Share of associates and joint ventures' profit (loss) 7 19 (85) 25 (47) (166)
Profit (loss) before taxation 129 (14) 32 222 (2,704)
Taxation 8 (85) (60) (38) (206) 759
Profit (loss) for the period 44 (74) (6) 16 (1,945)
Allocated as follows:
Equity shareholders 41 (80) 1 - (1,925)
Non-controlling interests 3 6 (7) 16 (20)
44 (74) (6) 16 (1,945)
Basic earnings (loss) per ordinary share (cents) (1) 10 (20) 0 0 (496)
Diluted earnings (loss) per ordinary share (cents) (2) 10 (20) (9) 0 (556)
(1) Calculated on the basic weighted average number of ordinary shares.
(2) Calculated on the diluted weighted average number of ordinary shares.
Rounding of figures may result in computational discrepancies.
The reviewed financial statements for the quarter and nine months ended 30 September 2014 have been prepared by the corporate accounting staff
of AngloGold Ashanti Limited headed by Mr John Edwin Staples (BCompt (Hons); CGMA), the Group's Chief Accounting Officer. This process was
supervised by Ms Kandimathie Christine Ramon (CA (SA)), the Group's Chief Financial Officer and Mr Srinivasan Venkatakrishnan (BCom; ACA
(ICAI)), the Group's Chief Executive Officer. The financial statements for the quarter and nine months ended 30 September 2014 were reviewed, but
not audited, by the Group's statutory auditors, Ernst & Young Inc.
Group statement of comprehensive income
Quarter Quarter Quarter Nine months Nine months
ended ended ended ended ended
September June September September September
2014 2014 2013 2014 2013
US Dollar million Reviewed Reviewed Reviewed Reviewed Reviewed
Profit (loss) for the period 44 (74) (6) 16 (1,945)
Items that will be reclassified subsequently
to profit or loss:
Exchange differences on translation of foreign
operations (118) (8) (8) (134) (348)
Share of associates and joint ventures' other
comprehensive income (1) - - - -
Net (loss) gain on available-for-sale financial assets (10) - 3 (1) (23)
Release on impairment of available-for-sale
financial assets - 1 4 1 29
Release on disposal of available-for-sale
financial assets - - (1) - (1)
Deferred taxation thereon 4 - - - 2
(6) 1 6 - 7
Items that will not be reclassified
subsequently to profit or loss:
Actuarial (gain) loss recognised (7) 6 (13) 9 17
Deferred taxation thereon 2 (2) 3 (2) (5)
(5) 4 (10) 7 12
Other comprehensive loss for the
period, net of tax (130) (3) (12) (127) (329)
Total comprehensive loss for the
period, net of tax (86) (77) (18) (111) (2,274)
Allocated as follows:
Equity shareholders (89) (83) (11) (127) (2,254)
Non-controlling interests 3 6 (7) 16 (20)
(86) (77) (18) (111) (2,274)
Rounding of figures may result in computational discrepancies.
Group statement of financial position
As at As at As at As at
September June December September
2014 2014 2013 2013
US Dollar million Notes Reviewed Reviewed Audited Reviewed
ASSETS
Non-current assets
Tangible assets 4,839 4,955 4,815 4,800
Intangible assets 247 270 267 288
Investments in associates and joint ventures 1,373 1,348 1,327 1,233
Other investments 127 144 131 134
Inventories 606 602 586 602
Trade and other receivables 30 23 29 29
Deferred taxation 160 187 177 541
Cash restricted for use 38 36 31 30
Other non-current assets 47 56 41 7
7,467 7,621 7,404 7,664
Current assets
Other investments - - 1 -
Inventories 959 1,002 1,053 1,064
Trade and other receivables 312 356 369 425
Cash restricted for use 15 18 46 36
Cash and cash equivalents 557 604 648 786
1,843 1,980 2,117 2,311
Non-current assets held for sale 14 - - 153 150
1,843 1,980 2,270 2,461
TOTAL ASSETS 9,310 9,601 9,674 10,125
EQUITY AND LIABILITIES
Share capital and premium 11 7,036 7,032 7,006 6,988
Accumulated losses and other reserves (4,051) (3,969) (3,927) (3,555)
Shareholders' equity 2,985 3,063 3,079 3,433
Non-controlling interests 25 38 28 (22)
Total equity 3,010 3,101 3,107 3,411
Non-current liabilities
Borrowings 3,521 3,619 3,633 3,583
Environmental rehabilitation and other provisions 1,022 1,060 963 1,057
Provision for pension and post-retirement benefits 142 150 152 179
Trade, other payables and deferred income 13 14 4 2
Deferred taxation 597 607 579 593
5,295 5,450 5,331 5,414
Current liabilities
Borrowings 159 187 258 326
Trade, other payables and deferred income 751 777 820 835
Bank overdraft 13 4 20 25
Taxation 82 82 81 54
1,005 1,050 1,179 1,240
Non-current liabilities held for sale 14 - - 57 60
1,005 1,050 1,236 1,300
Total liabilities 6,300 6,500 6,567 6,714
TOTAL EQUITY AND LIABILITIES 9,310 9,601 9,674 10,125
Rounding of figures may result in computational discrepancies.
Group statement of cash flows
Quarter Quarter Quarter Nine months Nine months
ended ended ended ended ended
September June September September September
2014 2014 2013 2014 2013
US Dollar million Reviewed Reviewed Reviewed Reviewed Reviewed
Cash flows from operating activities
Receipts from customers 1,358 1,386 1,396 4,033 4,231
Payments to suppliers and employees (997) (1,016) (1,048) (2,919) (3,279)
Cash generated from operations 361 370 348 1,114 952
Dividends received from joint ventures - - 10 - 18
Taxation refund - - - 38 1
Taxation paid (41) (34) (39) (145) (156)
Net cash inflow from operating activities 320 336 319 1,007 815
Cash flows from investing activities
Capital expenditure (222) ( 257) (327) (699) (1,129)
Interest capitalised and paid - - 2 (1) (5)
Expenditure on intangible assets - (3) (18) (3) (50)
Proceeds from disposal of tangible assets 4 26 1 31 7
Other investments acquired (14) (22) (17) (62) (73)
Proceeds from disposal of other investments 15 20 16 59 65
Investments in associates and joint ventures (10) (11) (120) (62) (394)
Proceeds from disposal of associates and joint ventures - - - - 6
Loans advanced to associates and joint ventures - (2) (3) (6) (26)
Loans repaid by associates and joint ventures 4 - 31 4 33
Dividends received - - - - 5
Proceeds from disposal of subsidiary - 105 - 105 2
Cash in subsidiary disposed and transfers to held for sale - 3 (5) 2 (6)
(Increase) decrease in cash restricted for use (1) (3) (2) 22 (7)
Interest received 4 7 4 16 13
Net cash outflow from investing activities (220) (137) (438) (594) (1,559)
Cash flows from financing activities
Proceeds from borrowings 338 76 1,640 428 2,106
Repayment of borrowings (386) (132) (1,058) (688) (1,226)
Finance costs paid (83) (43) (58) (207) (158)
Revolving credit facility and bond transaction costs (9) - (29) (9) (34)
Dividends paid (6) (3) 3 (9) (50)
Net cash (outflow) inflow from financing activities (146) (102) 498 (485) 638
Net (decrease) increase in cash and cash equivalents (46) 97 379 (72) (106)
Translation (10) - (1) (12) (25)
Cash and cash equivalents at beginning of period 600 503 383 628 892
Cash and cash equivalents at end of period (1) 544 600 761 544 761
Cash generated from operations
Profit (loss) before taxation 129 (14) 32 222 (2,704)
Adjusted for:
Movement on non-hedge derivatives and other commodity contracts (29) 6 34 (8) (66)
Amortisation of tangible assets 182 179 153 536 572
Finance costs and unwinding of obligations 69 71 89 211 222
Environmental, rehabilitation and other expenditure (6) 6 (8) 8 (30)
Special items 14 (9) 76 10 3,311
Amortisation of intangible assets 9 9 6 27 15
Fair value adjustment on USD1.25bn bonds (20) 31 46 80 46
Fair value adjustment on option component of convertible bonds - - - - (9)
Fair value adjustment on mandatory convertible bonds - - (44) - (356)
Interest received (6) (6) (8) (17) (24)
Share of associates and joint ventures' (profit) loss (19) 85 (25) 47 166
Other non-cash movements 19 27 8 60 19
Movements in working capital 19 (15) (11) (62) (210)
361 370 348 1,114 952
Movements in working capital
Decrease (increase) in inventories 33 8 (18) 32 (116)
Decrease in trade and other receivables 33 20 31 17 49
Decrease in trade, other payables and deferred income (47) (43) (24) (111) (143)
19 (15) (11) (62) (210)
(1) The cash and cash equivalents balance at 30 September 2014 includes a bank overdraft included in the statement of financial position as part of
current liabilities of USD13m (30 June 2014 : USD4m; 30 September 2013: USD25m).
Rounding of figures may result in computational discrepancies.
Group statement of changes in equity
Equity holders of the parent
Share Cash Available Foreign
capital Other Accumu- flow for Actuarial currency Non-
and capital lated hedge sale (losses) translation controlling Total
US Dollar million premium reserves losses reserve reserve gains reserve Total interests equity
Balance at 31 December 2012 6,742 177 (806) (2) 13 (89) (562) 5,473 21 5,494
Loss for the period (1,925) (1,925) (20) (1,945)
Other comprehensive income (loss) 7 12 (348) (329) (329)
Total comprehensive (loss) income - - (1,925) - 7 12 (348) (2,254) (20) (2,274)
Shares issued 246 246 246
Share-based payment for share awards
net of exercised 8 8 8
Dividends paid (40) (40) (40)
Dividends of subsidiaries - (23) (23)
Translation (21) 8 1 (2) 14 - -
Balance at 30 September 2013 6,988 164 (2,763) (1) 18 (63) (910) 3,433 (22) 3,411
Balance at 31 December 2013 7,006 136 (3,061) (1) 18 (25) (994) 3,079 28 3,107
Profit for the period - 16 16
Other comprehensive income (loss) 7 (134) (127) (127)
Total comprehensive income (loss) - - - - - 7 (134) (127) 16 (111)
Shares issued 30 30 30
Share-based payment for share awards
net of exercised 3 3 3
Dividends of subsidiaries - (19) (19)
Translation (5) 5 (1) 1 - - -
Balance at 30 September 2014 7,036 134 (3,056) (1) 17 (17) (1,128) 2,985 25 3,010
Rounding of figures may result in computational discrepancies.
Segmental reporting
AngloGold Ashanti's operating segments are being reported based on the financial information provided to the Chief Executive Officer and the
Executive Committee, collectively identified as the Chief Operating Decision Maker (CODM). Individual members of the Executive Committee
are responsible for geographic regions of the business.
Quarter ended Nine months ended
Sep Jun Sep Sep Sep
2014 2014 2013 2014 2013
Reviewed Reviewed Reviewed Reviewed Reviewed
US Dollar million
Gold income
South Africa 410 390 452 1,172 1,382
Continental Africa 500 535 530 1,567 1,542
Australasia 197 189 83 602 249
Americas 311 305 359 926 1,091
1,419 1,419 1,424 4,267 4,264
Equity-accounted investments included above (123) (99) (50) (327) (185)
1,295 1,321 1,374 3,940 4,079
Gross profit (loss)
South Africa 76 52 42 172 376
Continental Africa 116 113 130 348 359
Australasia 24 22 (11) 105 (38)
Americas 76 68 114 236 391
Corporate and other - (4) (2) (4) (7)
292 252 273 856 1,081
Equity-accounted investments included above (19) - 3 (36) (40)
273 252 276 820 1,041
Capital expenditure
South Africa 66 68 116 185 340
Continental Africa 86 121 198 335 627
Australasia 13 24 49 63 250
Americas 93 98 83 260 294
Corporate and other 2 - 2 2 6
261 311 448 846 1,516
Equity-accounted investments included above (38) (52) (103) (143) (318)
222 260 345 703 1,198
Quarter ended Nine months ended
Sep Jun Sep Sep Sep
2014 2014 2013 2014 2013
oz (000)
Gold production
South Africa 314 319 329 923 964
Continental Africa 410 395 382 1,178 1,000
Australasia 152 155 62 462 173
Americas 251 229 270 716 739
1,128 1,098 1,043 3,280 2,876
As at As at As at As at
Sep Jun Dec Sep
2014 2014 2013 2013
Reviewed Reviewed Audited Reviewed
US Dollar million
Total assets (1)
South Africa 2,166 2,303 2,325 2,441
Continental Africa 3,297 3,311 3,391 3,568
Australasia 978 1,073 1,108 1,168
Americas 2,371 2,340 2,203 2,232
Corporate and other 497 573 647 716
9,310 9,601 9,674 10,125
(1) During the 2013 year, pre-tax impairments, derecognition of goodwill, tangible assets and intangible assets of USD3,029m we
accounted for in South Africa (USD311m), Continental Africa (USD1,776m) and the Americas (USD942m). Impairments in the current period
amounted to USD1m.
Rounding of figures may result in computational discrepancies.
Notes
for the quarter and nine months ended 30 September 2014
1. Basis of preparation
The financial statements in this quarterly report have been prepared in accordance with the historic cost convention except for
certain financial instruments which are stated at fair value. The group's accounting policies used in the preparation of these
financial statements are consistent with those used in the annual financial statements for the year ended 31 December 2013
except for the adoption of new standards and interpretations effective 1 January 2014.
The financial statements of AngloGold Ashanti Limited have been prepared in compliance with IAS 34, IFRS as issued by the
International Accounting Standards Board, the South African Institute of Chartered Accountants Financial Reporting Guides as
issued by the Accounting Practices Committee, Financial Reporting Pronouncements as issued by Financial Reporting Standards
Council, JSE Listings Requirements and in the manner required by the South African Companies Act, 2008 (as amended) for the
preparation of financial information of the group for the quarter and nine months ended 30 September 2014.
2. Revenue
Quarter ended Nine months ended
Sep Jun Sep Sep Sep
2014 2014 2013 2014 2013
Reviewed Reviewed Reviewed Reviewed Reviewed
US Dollar million
Gold income 1,295 1,321 1,374 3,940 4,079
By-products (note 3) 34 30 32 94 109
Dividends received - - - - 5
Royalties received (note 5) 1 1 1 3 17
Interest received 6 6 8 17 24
1,337 1,358 1,415 4,054 4,234
3. Cost of sales
Quarter ended Nine months ended
Sep Jun Sep Sep Sep
2014 2014 2013 2014 2013
Reviewed Reviewed Reviewed Reviewed Reviewed
US Dollar million
Cash operating costs 857 861 805 2,481 2,416
By-products revenue (note 2) (34) (30) (32) (94) (109)
823 831 773 2,387 2,307
Royalties 32 34 30 103 97
Other cash costs 9 9 12 26 32
Total cash costs 864 874 815 2,516 2,436
Retrenchment costs 5 3 44 14 53
Rehabilitation and other non-cash costs 8 17 6 48 29
Production costs 877 894 865 2,578 2,518
Amortisation of tangible assets 182 179 153 536 572
Amortisation of intangible assets 9 9 6 27 15
Total production costs 1,068 1,082 1,025 3,141 3,106
Inventory change (15) (18) 39 (12) (1)
1,052 1,064 1,064 3,130 3,104
4. Other operating expenses
Quarter ended Nine months ended
Sep Jun Sep Sep Sep
2014 2014 2013 2014 2013
Reviewed Reviewed Reviewed Reviewed Reviewed
US Dollar million
Pension and medical defined benefit provisions 2 2 5 5 16
Claims filed by former employees in respect of loss
of employment, work-related accident injuries and
diseases, governmental fiscal claims and care and
maintenance of old tailings operations 3 4 2 11 2
Miscellaneous 4 1 - 5 -
9 7 7 21 18
Rounding of figures may result in computational discrepancies.
5. Special items
Quarter ended Nine months ended
Sep Jun Sep Sep Sep
2014 2014 2013 2014 2013
Reviewed Reviewed Reviewed Reviewed Reviewed
US Dollar million
Net impairment and derecognition of goodwill, tangible assets and
intangible assets (note 9) 1 - 8 1 2,992
Impairment of other investments (note 9) - 1 4 1 29
Net (profit) loss on disposal and derecognition of land, mineral
rights, tangible assets and exploration properties (note 9) (2) (25) 1 (25) (2)
Royalties received (note 2) (1) (1) (1) (3) (17)
Indirect tax expenses and legal claims 3 12 5 15 36
Inventory write-off due to fire at Geita - - - - 14
Legal fees and other costs related to contract termination and
settlement costs 7 3 - 16 1
Settlement costs of a legal claim at First Uranium - - - - 2
Write-down of stockpiles and heap leach to net realisable value
and other stockpile adjustments 1 - - 1 178
Corporate retrenchment costs 3 - 16 3 20
Retrenchment and related costs 34 25 - 59 -
Write-off of a loan - - - - 7
Costs on early settlement of convertible bonds - - 39 - 39
Transaction costs on the USD1.25bn bond and standby facility - - 20 - 20
Loss on sale of Navachab (note 14) - 2 - 2 -
Accelerated deferred loan fees paid on cancellation and
replacement of US and Australia revolving credit facilities 8 - - 8 -
54 17 92 78 3,319
The group reviews and tests the carrying value of its mining assets (including ore-stock piles) when events or changes in circumstances
suggest that the carrying amount may not be recoverable.
For the quarter and nine months ended 30 September 2014, no significant asset impairments or reversal of impairments were recognised.
During the year ended 31 December 2013, impairment, derecognition of assets and write-down of inventories to net realisable value and
other stockpile adjustments include the following:
- During June 2013, consideration was given to a range of indicators including a decline in gold price, increase in discount rates
and reduction in market capitalisation. As a result, certain cash generating units' recoverable amounts, including Obuasi and
Geita in Continental Africa, Moab Khotsong in South Africa and CC&V and AGA Mineração in the Americas, did not support their
carrying values and impairment losses of USD3,029m were recognised during 2013.
- The indicators were re-assessed as at 31 December 2013 as part of the annual impairment assessment cycle and the conditions
that arose in June 2013 were largely unchanged and no further cash generating unit impairments arose.
- In addition, net impairments of USD162m were recognised on the entity's investments in equity-accounted associates and joint
ventures considering quoted share prices, their respective financial positions and anticipated declines in operating results of
these entities. Impairments to net realisable value of USD178m were raised at 30 June 2013 and impairments of USD38m were
raised at 31 December 2013 due to stockpile abandonments and other specific adjustments.
6. Finance costs and unwinding of obligations
Quarter ended Nine months ended
Sep Jun Sep Sep Sep
2014 2014 2013 2014 2013
Reviewed Reviewed Reviewed Reviewed Reviewed
US Dollar million
Finance costs 62 64 76 190 179
Unwinding of obligations, accretion of convertible bonds and
other discounts 7 7 13 21 43
69 71 89 211 222
7. Share of associates and joint ventures' profit (loss)
Quarter ended Nine months ended
Sep Jun Sep Sep Sep
2014 2014 2013 2014 2013
Reviewed Reviewed Reviewed Reviewed Reviewed
US Dollar million
Revenue 130 121 62 368 217
Operating costs, special items and other expenses (107) (197) (68) (403) (203)
Net interest received 2 1 1 5 3
Profit (loss) before taxation 25 (75) (5) (30) 17
Taxation (6) (4) (2) (11) (20)
Profit (loss) after taxation 19 (79) (7) (41) (3)
Net impairment of investments in associates and joint
ventures (note 9) - (6) 31 (6) (162)
19 (85) 25 (47) (166)
Rounding of figures may result in computational discrepancies.
In July 2014, AngloGold Ashanti and other shareholders of Rand Refinery (Pty) Limited, an associate of the company, entered into an
agreement with Rand Refinery to provide an irrevocable, subordinated loan facility to the maximum value of R1.2 billion (USD106m).
The facility allows for amounts to be advanced to Rand Refinery to compensate third parties in the event that Rand Refinery finally
determines that a shortfall of 87 000 ounces of gold actually exists when comparing the physical inventory of Rand Refinery to the
records of amounts it holds on behalf of third parties.
The facility, if drawn down, will be convertible to equity after a period of 2 years on condition that all shareholders of Rand Refinery
agree to the conversion.
Due to the uncertainty around Rand Refinery's possible gold shortfall position and the time it is taking to resolve the matter, Rand
Refinery has been unable to complete its annual financial statements for the year ended 30 September 2013. As a result, AngloGold
Ashanti adjusted its share of equity profits accounted for as part of its investment in Rand Refinery, and which is based on the unaudited
management accounts of Rand Refinery, with an estimate of its share of the probable losses at Rand Refinery of USD51m related to the
gold shortfall position during quarter 2.
8. Taxation
Quarter ended Nine months ended
Sep Jun Sep Sep Sep
2014 2014 2013 2014 2013
Reviewed Reviewed Reviewed Reviewed Reviewed
US Dollar million
South African taxation
Mining tax 7 10 (4) 31 6
Non-mining tax (7) 1 - (10) 1
Prior year under (over) provision - 7 - 6 (1)
Deferred taxation
Temporary differences (1) 2 8 (19) (52)
Unrealised non-hedge derivatives and other commodity
contracts 8 (2) (9) 2 18
7 18 (5) 10 (28)
Foreign taxation
Normal taxation 46 37 25 128 64
Prior year over provision
Deferred taxation(1) (5) (9) (9) (16) (8)
Temporary differences 37 14 27 84 (787)
78 42 43 196 (731)
85 60 38 206 (759)
(1) Included in temporary differences under Foreign taxation in 2013, is a tax credit relating to impairments, derecognition of assets of USD915m and write-
down of inventories of USD68m.
9. Headline earnings (loss)
Quarter ended Nine months ended
Sep Jun Sep Sep Sep
2014 2014 2013 2014 2013
Reviewed Reviewed Reviewed Reviewed Reviewed
US Dollar million
The profit (loss) attributable to equity shareholders has been
adjusted by the following to arrive at headline earnings (loss):
Profit (loss) attributable to equity shareholders 41 (80) 1 - (1,925)
Net impairment and derecognition of goodwill, tangible assets
and intangible assets (note 5) 1 - 8 1 2,992
Net (profit) loss on disposal and derecognition of land, mineral
rights, tangible assets and exploration properties (note 5) (2) (25) 1 (25) (2)
Loss on sale of Navachab (note 14) - 2 - 2 -
Impairment of other investments (note 5) - 1 4 1 29
Net impairment of investments in associates and joint ventures
(note 7) - 6 (31) 6 162
Taxation - current portion - 7 - 7 1
Taxation - deferred portion 4 - (1) 1 (903)
44 (89) (18) (7) 354
Headline earnings (loss) per ordinary share (cents)(1) 11 (22) (5) (2) 91
Diluted headline earnings (loss) per ordinary share (cents)(2) 11 (22) (13) (2) 6
(1) Calculated on the basic weighted average number of ordinary shares.
(2) Calculated on the diluted weighted average number of ordinary shares.
Rounding of figures may result in computational discrepancies.
10. Number of shares
Quarter ended Nine months ended
Sep Jun Sep Sep Sep
2014 2014 2013 2014 2013
Reviewed Reviewed Reviewed Reviewed Reviewed
Authorised number of shares:
Ordinary shares of 25 SA cents each 600,000,000 600,000,000 600,000,000 600,000,000 600,000,000
E ordinary shares of 25 SA cents each 4,280,000 4,280,000 4,280,000 4,280,000 4,280,000
A redeemable preference shares of 50 SA cents
each 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000
B redeemable preference shares of 1 SA cent
Each 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000
Issued and fully paid number of shares:
Ordinary shares in issue 403,552,085 403,364,237 402,271,116 403,552,085 402,271,116
E ordinary shares in issue 685,668 690,984 1,579,674 685,668 1,579,674
Total ordinary shares: 404,237,753 404,055,221 403,850,790 404,237,753 403,850,790
A redeemable preference shares 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000
B redeemable preference shares 778,896 778,896 778,896 778,896 778,896
In calculating the basic and diluted number of ordinary shares outstanding for the period, the following were taken into consideration:
Ordinary shares 403,466,038 403,259,109 386,931,984 403,180,957 384,706,398
E ordinary shares 696,371 699,769 1,590,750 695,017 1,598,625
Fully vested options 2,047,889 2,030,986 1,599,773 2,531,078 1,970,906
Weighted average number of shares 406,210,298 405,989,864 390,122,507 406,407,051 388,275,928
Dilutive potential of share options 2,215,555 - - - -
Dilutive potential of convertible bonds - - 15,747,913 - 17,339,706
Diluted number of ordinary shares 408,425,853 405,989,864 405,870,420 406,407,051 405,615,634
11. Share capital and premium
As at
Sep Jun Dec Sep
2014 2014 2013 2013
Reviewed Reviewed Audited Reviewed
US Dollar Million
Balance at beginning of period 7,074 7,074 6,821 6,821
Ordinary shares issued 25 21 259 246
E ordinary shares issued and cancelled - - (6) -
Sub-total 7,099 7,095 7,074 7,067
Redeemable preference shares held within the group (53) (53) (53) (53)
Ordinary shares held within the group - - (6) (10)
E ordinary shares held within the group (10) (10) (9) (16)
Balance at end of period 7,036 7,032 7,006 6,988
12. Exchange rates
Sep Jun Dec Sep
2014 2014 2013 2013
Unaudited Unaudited Unaudited Unaudited
ZAR/USD average for the year to date 10.70 10.67 9.62 9.45
ZAR/USD average for the quarter 10.76 10.51 10.12 9.96
ZAR/USD closing 11.28 10.63 10.45 10.02
AUD/USD average for the year to date 1.09 1.09 1.03 1.02
AUD/USD average for the quarter 1.08 1.07 1.08 1.09
AUD/USD closing 1.14 1.06 1.12 1.07
BRL/USD average for the year to date 2.29 2.30 2.16 2.12
BRL/USD average for the quarter 2.27 2.23 2.27 2.29
BRL/USD closing 2.45 2.20 2.34 2.23
ARS/USD average for the year to date 7.99 7.83 5.48 5.28
ARS/USD average for the quarter 8.30 8.05 6.07 5.58
ARS/USD closing 8.43 8.13 6.52 5.79
Rounding of figures may result in computational discrepancies.
13. Capital commitments
Sep Jun Dec Sep
2014 2014 2013 2013
Reviewed Reviewed Audited Reviewed
US Dollar Million
Orders placed and outstanding on capital contracts at the prevailing
rate of exchange(1) 290 325 437 640
(1) Includes capital commitments relating to associates and joint ventures.
Liquidity and capital resources
To service the above capital commitments and other operational requirements, the group is dependent on existing cash
resources, cash generated from operations and borrowing facilities.
Cash generated from operations is subject to operational, market and other risks. Distributions from operations may be subject to
foreign investment, exchange control laws and regulations and the quantity of foreign exchange available in offshore countries. In
addition, distributions from joint ventures are subject to the relevant board approval.
The credit facilities and other finance arrangements contain financial covenants and other similar undertakings. To the extent that
external borrowings are required, the group's covenant performance indicates that existing financing facilities will be available to
meet the above commitments. To the extent that any of the financing facilities mature in the near future, the group believes that
sufficient measures are in place to ensure that these facilities can be refinanced.
14. Non-current assets and liabilities held for sale
Effective 30 April 2013, Navachab mine located in Namibia was classified as held for sale. Navachab gold mine was previously
recognised as a combination of tangible assets, goodwill, current assets, current and long-term liabilities. On 10 February 2014,
AngloGold Ashanti announced that it signed a binding agreement to sell Navachab to a wholly-owned subsidiary of QKR Corporation
Ltd (QKR). The purchase consideration consists of two components: an initial cash payment and a deferred consideration in the form
of a net smelter return (NSR).
On 30 June 2014, AngloGold Ashanti Limited announced that the sale had been completed in accordance with the sales agreement
with all conditions precedent being met. A loss on disposal of USD2m (note 5) was realised on the sale on Navachab.
15. Financial risk management activities
Borrowings
The USD1.25bn bonds and the mandatory convertible bonds settled in September 2013, are carried at fair value. The convertible bonds,
settled 99.1% in August 2013 and in full in November 2013, and rated bonds are carried at amortised cost and their fair values are
their closing market values at the reporting date. The interest rate on the remaining borrowings is reset on a short-term floating rate
basis, and accordingly the carrying amount is considered to approximate fair value.
As at
Sep Jun Dec Sep
2014 2014 2013 2013
Reviewed Reviewed Audited Reviewed
Carrying amount 3,680 3,806 3,891 3,909
Fair value 3,684 3,822 3,704 3,690
Derivatives
The fair value of derivatives is estimated based on ruling market prices, volatilities, interest rates and credit risk and includes all
derivatives carried in the statement of financial position.
Embedded derivatives and the conversion features of convertible bonds are included as derivatives on the statement of financial
position.
The group uses the following hierarchy for determining and disclosing the fair value of financial instruments:
Level 1: quote prices (unadjusted) in active markets for identical assets or liabilities;
Level 2: inputs other than quoted prices included in level 1 that are observable for the asset or liability, either directly
(as prices) or indirectly (derived from prices); and
Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).
The following tables set out the group's financial assets and liabilities measured at fair value by level within the fair value
hierarchy:
Type of instrument
Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total
US Dollar million Sep 2014 Jun 2014 Dec 2013 Sep 2013
Assets measured at fair value
Available-for-sale financial assets
Equity securities 48 - - 48 60 - - 60 47 - - 47 45 2 - 47
Liabilities measured at fair value
Financial liabilities at fair value through profit
or loss
USD1.25bn bonds 1,410 - - 1,410 1,457 - - 1,457 1,353 - - 1,353 1 1,315 - - 1,315
Rounding of figures may result in computational discrepancies.
16. Contingencies
AngloGold Ashanti's material contingent liabilities and assets at 30 September 2014 and 31 December 2013 are detailed
below:
Contingencies and guarantees
September December
2014 2013
Reviewed Audited
US Dollar million
Contingent liabilities
Groundwater pollution(1) - -
Deep groundwater pollution – Africa(2) - -
Withholding taxes – Ghana(3) 30 28
Litigation – Ghana(4) (5) (6) 97 97
ODMWA litigation(7) 197 -
Other tax disputes – AngloGold Ashanti Brasil Mineração Ltda(8) 36 38
VAT disputes – Mineração Serra Grande S.A. (9) 16 16
Tax dispute - AngloGold Ashanti Colombia S.A.(10) 187 188
Tax dispute - Cerro Vanguardia S.A.(11) 52 63
Sales tax on gold deliveries – Mineração Serra Grande S.A. (12) - 101
Contingent assets
Indemnity – Kinross Gold Corporation(13) (10) (60)
Royalty – Tau Lekoa Gold Mine(14) - -
Royalty – Navachab(15) - -
Financial Guarantees
Oro Group (Pty) Limited(16) 9 10
614 481
(1) Groundwater pollution - AngloGold Ashanti Limited has identified groundwater contamination plumes at certain of its
operations, which have occurred primarily as a result of seepage. Numerous scientific, technical and legal studies have been
undertaken 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 have 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 group has identified a flooding and future pollution risk posed by deep groundwater in
certain underground mines in Africa. Various studies have been undertaken by AngloGold Ashanti Limited since 1999. Due
to the interconnected nature of mining operations, any proposed solution needs to be a combined one supported by all the
mines located in these gold fields. As a result, in South Africa, the Mineral and Petroleum Resources Development Act
(MPRDA) requires that the affected mining companies develop a Regional Mine Closure Strategy to be approved by the
Department of Mineral Resources. In view of the limitation of current information for the accurate estimation of a liability, no
reliable estimate can be made for the obligation.
(3) Withholding taxes - AngloGold Ashanti (Ghana) Limited (AGAG) received a tax assessment for the 2006 to 2008 and for the
2009 to 2011 tax years following audits by the tax authorities which related to various withholding taxes amounting to USD30m
(2013: USD28m). Management is of the opinion that the withholding taxes were not properly assessed and the company has
lodged an objection.
(4) Litigation - On 11 October 2011, AGAG terminated its commercial arrangements with Mining and Building Contractors
Limited (MBC) relating to certain underground development, construction on bulkheads and diamond drilling services
provided by MBC in respect of the Obuasi mine. On 8 November 2012, AGAG and MBC concluded a separation agreement
that specified the terms on which the parties agreed to sever their commercial relationship. On 23 July 2013, MBC
commenced proceedings against AGAG in the High Court of Justice (Commercial Division) in Accra, Ghana, and served a
writ of summons that claimed a total of approximately USD97m in damages. MBC asserts various claims for damages, including,
among others, as a result of the breach of contract, non-payment of outstanding historical indebtedness by AGAG and the
demobilisation of equipment, spare parts and material acquired by MBC for the benefit of AGAG in connection with
operations at the Obuasi mine in Ghana. MBC has also asserted various labour claims on behalf of itself and certain of its
former contractors and employees at the Obuasi mine. On 9 October 2013, AGAG filed a motion in court to refer the action or
a part thereof to arbitration. This motion was set to be heard on 25 October 2013, however, on 24 October 2013, MBC filed a
motion to discontinue the action with liberty to reapply. On 20 February 2014, AGAG was served with a new writ for
approximately USD97m, as previously claimed. On 5 May 2014, the court dismissed AGAG's application for stay of proceedings
pending arbitration and ordered AGAG to file its statement of defence within 14 days. On 20 May 2014, AGAG filed a Notice
of Appeal at the Court of Appeal. AGAG further filed a Stay of Proceedings Pending Appeal at the High Court. On 11 June
2014, the High Court granted AGAG's application for Stay of Proceedings pending appeal. On 2 October 2014, AGAG was
served with the Civil Form 6 indicating that the records have been transmitted to the Court of Appeal. However, as the
transmitted records were incomplete, AGAG timely filed an application for the record to be amended prior to filing its
statement of case.
(5) Litigation – AGAG received a summons on 2 April 2013 from Abdul Waliyu and 152 others in which the plaintiffs allege that
they were or are residents of the Obuasi municipality or its suburbs and that their health has been adversely affected by
emission and/or other environmental impacts arising in connection with the current and/or historical operations of the
Pompora Treatment Plant (PTP) which was decommissioned in 2000. The claim is to award general damages, special
damages for medical treatment and punitive damages, as well as several orders relating to the operation of the PTP. The
plaintiffs have not filed their application for directions which was due by 31 October 2013. AGAG intends to allow some time
to pass prior to applying to have the matter struck out for want of prosecution. In view of the limitation of current information
for the accurate estimation of a liability, no reliable estimate can be made for the obligation.
(6) Litigation – Frank Adjei Danso & 4 others (executive members of the PTP (AGA) Smoke Effect Association (PASEA)), sued
AGAG on 24 February 2014 in their personal capacity and on behalf of the members of PASEA. The plaintiffs claim that they
were residents of Tutuka, Sampsonkrom, Anyimadukrom, Kortkortesua, Abomperkrom, and PTP Residential Quarters, all
suburbs of Obuasi, in close proximity to the now decommissioned Pompara Treatment Plant (PTP). The plaintiffs claim they
have been adversely affected by the operations of the PTP. On 24 June 2014, AGAG was served with an application for a
default judgement. On 2 July 2014, AGAG filed an affidavit in opposition on the basis that the plaintiffs had failed to amend
and file their statement of claim. Plaintiffs admitted their error in filing the default judgement, but the Court granted Plaintiffs'
request for leave to amend the writ of summons and statement of claim. AGAG has yet to be served with the amended writ
and statement of claim. In view of the limitation of current information for the accurate estimation of a liability, no reliable
estimate can be made for the obligation.
(7) Occupational Diseases in Mines and Works Act (ODMWA) litigation – On 3 March 2011, in Mankayi vs. AngloGold Ashanti,
the Constitutional Court of South Africa held that section 35(1) of the Compensation for Occupational Injuries and Diseases
Act, 1993 does not cover an "employee" who qualifies for compensation in respect of "compensable diseases" under the
Occupational Diseases in Mines and Works Act, 1973 (ODMWA). This judgement allows such qualifying employee to pursue
a civil claim for damages against the employer. Following the Constitutional Court decision, AngloGold Ashanti has become
subject to numerous claims relating to silicosis and other Occupational Lung Diseases (OLD), including several potential
class actions and individual claims.
For example, on or about 21 August 2012, AngloGold Ashanti was served with an application instituted by Bangumzi Bennet
Balakazi ("the Balakazi Action") and others in which the applicants seek an order declaring that all mine workers (former or
current) who previously worked or continue to work in specified South African gold mines for the period owned by AngloGold
Ashanti and who have silicosis or other OLD constitute members of a class for the purpose of proceedings for declaratory
relief and claims for damages. In the event the class is certified, such class of workers would be permitted to institute actions
by way of a summons against AngloGold Ashanti for amounts as yet unspecified. On 4 September 2012, AngloGold Ashanti
delivered its notice of intention to defend this application. AngloGold Ashanti also delivered a formal request for additional
information that it requires to prepare its affidavits in respect to the allegations and the request for certification of a class.
In addition, on or about 8 January 2013, AngloGold Ashanti and its subsidiary Free State Consolidated Gold Mines
(Operations) Limited, alongside other mining companies operating in South Africa, were served with another application to
certify a class ("the Nkala Action"). The applicants in the case seek to have the court certify two classes namely: (i) current
and former mineworkers who have silicosis (whether or not accompanied by any other disease) and who work or have worked on certain
specified gold mines at any time from 1 January 1965 to date; and (ii) the dependants of mineworkers who died as a result of
silicosis (whether or not accompanied by any other disease) and who worked on these gold mines at any time after 1 January 1965.
AngloGold Ashanti filed a notice of intention to oppose the application.
On 21 August 2013, an application was served on AngloGold Ashanti for the consolidation of the Balakazi Action and the
Nkala Action, as well as a request for an amendment to change the scope of the classes the court was requested to certify in
the previous applications that were initiated. The applicants now request certification of two classes (the "silicosis class" and
the "tuberculosis class"). The silicosis class would consist of certain current and former underground mineworkers who have
contracted silicosis, and the dependants of certain deceased mineworkers who have died of silicosis (whether or not
accompanied by any other disease). The tuberculosis class would consist of certain current and former mineworkers who
have or had contracted pulmonary tuberculosis and the dependants of certain deceased mineworkers who died of pulmonary
tuberculosis (but excluding silico-tuberculosis). On 30 May 2014 AngloGold Ashanti submitted its answering affidavit. The
plaintiffs filed their affidavits in reply on 15 September 2014.
In October 2012, AngloGold Ashanti received a further 31 individual summonses and particulars of claim relating to silicosis
and/or other OLD. The total amount claimed in the 31 summonses is approximately USD7 million as at the 30 September 2014
closing rate. On 22 October 2012, AngloGold Ashanti filed a notice of intention to oppose these claims and took legal
exception to the summonses on the ground that certain particulars of claim were unclear. On 4 April 2014, the High Court of
South Africa dismissed these exceptions and on 25 April 2014, AngloGold Ashanti filed its pleas in this matter.
On or about 3 March 2014, AngloGold Ashanti received an additional 21 individual summonses and particulars of claim
relating to silicosis and/or other OLD. The total amount claimed in the 21 summonses is approximately USD4 million as at the 30
September 2014 closing rate. AngloGold Ashanti has filed a notice of intention to oppose these claims. On 2 May 2014
AngloGold Ashanti filed a notice taking legal exception to the summonses on the ground that certain particulars of claim were
unclear.
On or about 24 March 2014, AngloGold Ashanti received a further 686 individual summonses and particulars of claim relating
to silicosis and/or other OLD. The total amount claimed in the 686 summonses is approximately USD102 million as at the 30
September 2014 closing rate. AngloGold Ashanti has filed a notice of intention to oppose these claims. On 15 May 2014
AngloGold Ashanti filed a notice taking legal exception to the summonses on the ground that certain particulars of claim were
unclear.
On or about 1 April 2014, AngloGold Ashanti received a further 518 individual summonses and particulars of claim relating to
silicosis and/or other OLD. The total amount claimed in the 518 summonses is approximately USD84 million as at the 30
September 2014 closing rate. AngloGold Ashanti has filed a notice of intention to oppose these claims. On 15 May 2014
AngloGold Ashanti filed a notice taking legal exception to the summonses on the ground that certain particulars of claim were
unclear.
On 9 October 2014, AngloGold Ashanti and the plaintiffs' attorneys agreed to refer all of the individual claims to arbitration.
The court proceedings have been suspended as a result of entering into the arbitration agreement.
It is possible that additional class actions and/or individual claims relating to silicosis and/or other OLD will be filed against
AngloGold Ashanti in the future. AngloGold Ashanti will defend all current and subsequently filed claims on their merits.
Should AngloGold Ashanti be unsuccessful in defending any such claims, or in otherwise favourably resolving perceived
deficiencies in the national occupational disease compensation framework that were identified in the earlier decision by the
Constitutional Court, such matters would have an adverse effect on its financial position, which could be material. The
company is unable to reasonably estimate its share of the amounts claimed.
(8) Other tax disputes - In November 2007, the Departamento Nacional de Produção Mineral (DNPM), a Brazilian federal mining
authority, issued a tax assessment against AngloGold Ashanti Brazil Mineração Ltda (AABM) in the amount of USD19m (2013:
USD19m) relating to the calculation and payment by AABM of the financial contribution on mining exploitation (CFEM) in the
period from 1991 to 2006. AngloGold Ashanti Limited's subsidiaries in Brazil are involved in various other disputes with tax
authorities. These disputes involve federal tax assessments including income tax, royalties, social contributions and annual
property tax. The amount involved is approximately USD17m (2013: USD19m). Management is of the opinion that these taxes are
not payable.
(9) VAT disputes - MSG received a tax assessment in October 2003 from the State of Minas Gerais related to VAT on gold
bullion transfers. The tax administrators rejected the company's appeal against the assessment. The company is now
appealing the dismissal of the case. The assessment is approximately USD16m (2013: USD16m).
(10) Tax dispute – AngloGold Ashanti Colombia S.A. (AGAC) received notice from the Colombian Tax Office (DIAN) that it
disagreed with the company's tax treatment of certain items in the 2011 and 2010 income tax returns. On 23 October 2013
AGAC received the official assessments from the DIAN which established that an estimated additional tax of USD32m (2013:
USD35m) will be payable if the tax returns are amended. Penalties and interest for the additional taxes are expected to be
USD155m (2013: USD153m), based on Colombian tax law. The company believes that it has applied the tax legislation correctly.
AGAC requested in December 2013 that DIAN reconsider its decision and the company has been officially notified that DIAN
will review its earlier ruling. This review is anticipated to take twelve months, at the end of which AGAC may file suit if the
ruling is not reversed.
(11) Tax dispute - On 12 July 2013, Cerro Vanguardia S.A. received a notification from the Argentina Tax Authority requesting
corrections to the 2007, 2008 and 2009 income tax returns of about USD15m (2013: USD18m) relating to the non-deduction of tax
losses previously claimed on hedge contracts. Penalties and interest on the disputed amounts are estimated at a further
USD37m (2013: USD45m). A new notification was received on 16 July 2014 from the tax authorities that disallowed arguments from
CVSA's initial response. CVSA prepared defence arguments and evidence which was filed on 8 September 2014.
Management is of the opinion that the taxes are not payable.
(12) Sales tax on gold deliveries – In 2006, Mineração Serra Grande S.A. (MSG), received two tax assessments from the State of
Goiás related to the payments of state sales taxes at the rate of 12% on gold deliveries for export from one Brazilian state to
another during the period from February 2004 to the end of May 2006. The first and second assessments were
approximately USD62m and USD39m as at 31 December 2013, respectively. Various legal proceedings have taken place over the
years with respect to this matter, as previously disclosed. On 5 May 2014, the State of Goiás published a law which enables
companies to settle outstanding tax assessments of this nature. Under this law, MSG settled the two assessments in May
2014 by paying USD14m in cash and by utilising USD29m of existing VAT credits. The utilisation of the VAT credits is subject to
legal confirmation from the State of Goiás within 180 days from the settlement agreement date. Management has concluded
that the likelihood of the State of Goiás declining the utilisation of the VAT credits or part thereof is remote. The cash
settlement, which occurred on 25 July 2014, was further set off by an indemnity from Kinross of USD6m.
(13) Indemnity - As part of the acquisition by AngloGold Ashanti Limited of the remaining 50% interest in MSG during June
2012, Kinross Gold Corporation (Kinross) has provided an indemnity to a maximum amount of BRL255m against the
specific exposures discussed in items 9 and 12 above. In light of the settlements described in item 12 at 30 September
2014, the company has estimated that the maximum contingent asset is USD10m (2013: USD60m).
(14) Royalty - As a result of the sale of the interest in the Tau Lekoa Gold Mine during 2010, the group is entitled to receive a
royalty on the production of a total of 1.5Moz by the Tau Lekoa Gold Mine and in the event that the average
monthly rand price of gold exceeds R180,000/kg (subject to an inflation adjustment). Where the average monthly
rand price of gold does not exceed R180,000/kg (subject to an inflation adjustment), the ounces produced in that
quarter do not count towards the total 1.5Moz upon which the royalty is payable. The royalty is determined a t 3% of
the net revenue (being gross revenue less state royalties) generated by the Tau Lekoa assets. Royalties on 482,875oz
(2013: 413,246oz) produced have been received to date.
(15) Royalty – As a result of the sale of Navachab, AngloGold Ashanti will receive a net smelter to return paid quarterly for
seven years from 1 July 2016, determined at 2% of ounces sold during the relevant quarter subject to a minimum average
gold price of USD1,350 and capped at a maximum of 18,750 ounces sold per quarter.
(16) Provision of surety - The company has provided surety in favour of a lender on a gold loan facility with its associate
Oro Group (Pty) Limited and one of its subsidiaries to a maximum value of USD9m (2013: USD10m). The probability of the
non-performance under the suretyships is considered minimal. The suretyship agreements have a termination notice
period of 90 days.
17. Concentration of tax risk
There is a concentration of tax risk in respect of recoverable value added tax, fuel duties and appeal deposits from the Tanzanian
government.
The recoverable value added tax, fuel duties and appeal deposits are summarised as follows:
Sep 2014
US Dollar million
Recoverable fuel duties(1) 8
Recoverable value added tax 22
Appeal deposits 4
(1) Fuel duty claims are required to be submitted after consumption of the related fuel and are subject to authorisation by the Customs and Excise
authorities.
18. Borrowings
AngloGold Ashanti's borrowings are interest bearing.
19. Announcements
Appointment of new Chief Financial Officer: On 7 July 2014, AngloGold Ashanti announced the appointment of Christine
Ramon as Chief Financial Officer and Executive Director from 1 October 2014, replacing Mr Richard Duffy, who would step down
from both the Board and the Executive Committee.
Intended Delisting and Cancellation of Securities from the London Stock Exchange: On 18 August 2014 AngloGold Ashanti
announced that its board of directors had resolved to request the cancellation of the listing of the Company's ordinary shares and
depositary interests on the Official List of the UK Listing Authority and the cancellation of the admission to trading of the
Securities on the Main Market of the London Stock Exchange plc.
Proposed Corporate Restructure and Capital Raising, and Cautionary announcement: On 10 September AngloGold Ashanti
announced that the Company had applied for and received approval from the South African Reserve Bank to restructure its
international mining operations under a new UK holding company while the current company would continue to be a South African
domiciled company and would house the South African assets. The Company also announced that it will consult with its
shareholders regarding plans to raise about USUSD2.1bn through a rights issue to support the proposed restructuring.
Update on Proposed Restructuring and Withdrawal of Cautionary announcement: On 15 September 2014, following the
aforementioned consultations with shareolders, AngloGold Ashanti announced that the Company would not proceed with the
corporate restructuring and capital raising as proposed due to concerns raised by shareholders on certain aspects of the
transactions.
Delisting and Cancellation of Securities from the London Stock Exchange: On 26 September 2014 AngloGold Ashanti
announced that listing of the Company's ordinary shares and depository interests on the Official List of the UK Listing Authority
was cancelled with effect from 8.00 am on 22 September 2014. The Securities ceased to be admitted to trading on the Main
Market of the London Stock Exchange plc with effect from the same time and date.
By order of the Board
S M PITYANA S VENKATAKRISHNAN
Chairman Chief Executive Officer
30 October 2014
Non-GAAP disclosure
From time to time AngloGold Ashanti Limited may publicly disclose certain "Non-GAAP" financial measures in the course of its financial presentations,
earnings releases, earnings conference calls and otherwise.
The group uses certain Non-GAAP performance measures and ratios in managing the business and may provide users of this financial information with
additional meaningful comparisons between current results and results in prior operating periods. Non-GAAP financial measures should be viewed in
addition to, and not as an alternative to, the reported operating results or any other measure of performance prepared in accordance with IFRS. In
addition, the presentation of these measures may not be comparable to similarly titled measures that other companies use.
A Adjusted headline earnings (loss)
Quarter ended Nine months ended
Sep Jun Sep Sep Sep
2014 2014 2013 2014 2013
Unaudited Unaudited Unaudited Unaudited Unaudited
US Dollar million
Headline earnings (loss) (note 9) 44 (89) (18) (7) 354
(Gain) loss on unrealised non-hedge derivatives and
other commodity contracts (30) 5 34 (10) (66)
Deferred tax on unrealised non-hedge derivatives and
other commodity contracts (note 8) 8 (2) (9) 2 18
Fair value adjustment on USD1.25bn bonds (20) 31 46 80 46
Fair value adjustment on option component of convertible bonds - - - - (9)
Fair value adjustment on mandatory convertible bonds - - 523 - 211
Provision for losses in associate - 51 - 51 -
Adjusted headline earnings (loss) 2 (4) 576 117 553
Adjusted headline earnings (loss) per ordinary share (cents) (1) 0 (1) 148 29 142
(1)Calculated on the basic weighted average number of ordinary shares.
B Adjusted gross profit
Quarter ended Nine months ended
Sep Jun Sep Sep Sep
2014 2014 2013 2014 2013
Unaudited Unaudited Unaudited Unaudited Unaudited
US Dollar million
Reconciliation of gross profit to adjusted gross profit:
Gross profit 273 252 276 820 1,041
(Gain) loss on unrealised non-hedge derivatives and
other commodity contracts (30) 5 34 (10) (66)
Adjusted gross profit 243 257 310 811 975
C Price received
Quarter ended Nine months ended
Sep Jun Sep Sep Sep
2014 2014 2013 2014 2013
Unaudited Unaudited Unaudited Unaudited Unaudited
US Dollar million/Imperial
Gold income (note 2) 1,295 1,321 1,374 3,940 4,079
Adjusted for non-controlling interests (16) (22) (21) (57) (61)
1,279 1,299 1,353 3,883 4,018
Realised loss on other commodity contracts 6 4 6 15 20
Associates and joint ventures' share of gold income including realised
non-hedge derivatives 123 99 50 327 185
Attributable gold income including realised non-hedge
derivatives 1,409 1,402 1,409 4,225 4,223
Attributable gold sold - oz (000) 1,099 1,087 1,062 3,284 2,902
Price received per unit - USD/oz 1,281 1,289 1,327 1,287 1,455
Rounding of figures may result in computational discrepancies.
D All-in sustaining costs and All-in costs(1)
Quarter ended Nine months ended
Sep Jun Sep Sep Sep
2014 2014 2013 2014 2013
Unaudited Unaudited Unaudited Unaudited Unaudited
US Dollar million/Imperial
Cost of sales (note 3) 1,052 1,064 1,064 3,130 3,104
Amortisation of tangible and intangible assets (note 3) (191) (188) (159) (563) (587)
Adjusted for decommissioning amortisation 3 2 1 7 4
Inventory writedown to net realisable value and other stockpile
adjustments (note 5) 1 - - 1 178
Corporate administration and marketing related to current operations 22 19 41 66 163
Associates and joint ventures' share of costs 77 72 52 218 142
Sustaining exploration and study costs 14 8 14 32 79
Total sustaining capex 177 205 232 555 746
All-in sustaining costs 1,156 1,183 1,245 3,446 3,829
Adjusted for non-controlling interests and non -gold producing companies (14) (21) (19) (52) (55)
All-in sustaining costs adjusted for non-controlling interests and
non-gold producing companies 1,142 1,162 1,226 3,394 3,774
Adjusted for stockpile write-offs (3) (9) - (12) (178)
All-in sustaining costs adjusted for non-controlling interests, non-gold
producing companies and stockpile write-offs 1,139 1,153 1,226 3,382 3,596
All-in sustaining costs 1,156 1,183 1,245 3,446 3,829
Non-sustaining project capital expenditure 84 107 216 291 770
Technology improvements 3 5 4 12 8
Non-sustaining exploration and study costs 23 23 43 66 147
Corporate and social responsibility costs not related to current operations 6 6 7 18 20
All-in costs 1,271 1,324 1,516 3,832 4,774
Adjusted for non-controlling interests and non -gold producing companies (11) (19) (20) (44) (64)
All-in costs adjusted for non-controlling interests and
non-gold producing companies 1,260 1,305 1,495 3,788 4,710
Adjusted for stockpile write-offs (3) (9) - (12) (178)
All-in costs adjusted for non-controlling interests, non-gold producing
companies and stockpile write-offs 1,257 1,296 1,495 3,776 4,532
Gold sold - oz (000) 1,099 1,087 1,062 3,284 2,902
All-in sustaining cost (excluding stockpile write-offs) per unit - USD/oz 1,036 1,060 1,155 1,030 1,239
All-in cost per unit (excluding stockpile write-offs) - USD/oz 1,144 1,192 1,408 1,150 1,562
(1) Refer to note J for Summary of Operations by Mine
E Total costs(2)
Total cash costs (note 3) 864 874 815 2,516 2,436
Adjusted for non-controlling interests, non-gold producing companies and other (16) (24) (22) (75) (90)
Associates and joint ventures' share of total cash costs 76 68 50 213 141
Total cash costs adjusted for non-controlling interests
and non-gold producing companies 924 918 843 2,654 2,487
Retrenchment costs (note 3) 5 3 44 14 53
Rehabilitation and other non-cash costs (note 3) 8 17 6 48 29
Amortisation of tangible assets (note 3) 182 179 153 536 572
Amortisation of intangible assets (note 3) 9 9 6 27 15
Adjusted for non-controlling interests and non-gold producing companies 2 8 7 6 (3)
Equity-accounted associates and joint ventures' share of production costs 29 31 2 80 5
Total production costs adjusted for non-controlling
interests and non-gold producing companies 1,158 1,165 1,061 3,365 3,158
Gold produced - oz (000) 1,126 1,097 1,043 3,278 2,876
Total cash cost per unit - USD/oz 820 836 809 810 865
Total production cost per unit - USD/oz 1,029 1,061 1,017 1,027 1,098
(2)Refer to note J for Summary of Operations by mine
Rounding of figures may result in computational discrepancies.
F Adjusted EBITDA(1)
Quarter ended Nine months ended
Sep Jun Sep Sep Sep
2014 2014 2013 2014 2013
Unaudited Unaudited Unaudited Unaudited Unaudited
US Dollar million
Profit (loss) on ordinary activities before taxation 129 (14) 32 222 (2,704)
Add back :
Finance costs and unwinding of obligation 69 71 89 211 222
Interest received (6) (6) (8) (17) (24)
Amortisation of tangible and intangible assets (note 3) 191 188 159 563 587
Adjustments :
Dividend received (note 2) - - - - (5)
Exchange (loss) gain (4) 8 (10) 11 (11)
Fair value adjustment on the mandatory convertible bonds - - (44) - (356)
Fair value adjustment on option component of convertible bonds - - - - (9)
Fair value adjustment on USD1.25bn bonds (20) 31 46 80 46
Net impairment and derecognition of goodwill, tangible and intangible
assets (note 5) 1 - 8 1 2,992
Impairment of other investments (note 5) - 1 4 1 29
Write-down of stockpiles and heap leach to net realisable value and other
stockpile adjustments (note 5) 1 - - 1 178
Write-off of loan (note 5) - - - - 7
Retrenchments at mining operations (note 3) 5 3 44 14 53
Retrenchments at Obuasi 34 31 - 65 -
Net (profit) loss on disposal and derecognition of assets (note 5) (2) (25) 1 (25) (2)
(Gain) loss on unrealised non-hedge derivatives and other commodity
contracts (30) 5 34 (10) (66)
Associates and joint ventures' exceptional expense - 6 (31) 6 162
Associates and joint ventures' - adjustments for amortisation, interest,
taxation and other. 32 83 3 134 22
Adjusted EBITDA 400 382 327 1,258 1,123
(1)EBITDA (as adjusted) and prepared in terms of the formula set out in the Revolving Credit Agreements.
G Interest cover
Adjusted EBITDA (note F) 400 382 327 1,258 1,123
Finance costs (note 6) 62 64 76 190 179
Capitalised finance costs - - (2) 1 5
62 64 74 191 184
Interest cover - times 6 6 4 7 6
H Net asset value - cents per share
As at As at As at As at
Sep Jun Dec Sep
2014 2014 2013 2013
Unaudited Unaudited Unaudited Unaudited
US Dollar million
Total equity 3,010 3,101 3,107 3,411
Number of ordinary shares in issue - million (note 10) 404 404 403 404
Net asset value - cents per share 745 767 770 845
Total equity 3,010 3,101 3,107 3,411
Intangible assets (247) (270) (267) (288)
2,763 2,831 2,840 3,123
Number of ordinary shares in issue - million (note 10) 404 404 403 404
Net tangible asset value - cents per share 684 701 704 773
I Net debt
Borrowings - long-term portion 3,521 3,619 3,633 3,583
Borrowings - short-term portion 159 187 258 326
Bank overdraft 13 4 20 25
Total borrowings 3,693 3,810 3,911 3,934
Corporate office lease (22) (24) (25) (26)
Unamortised portion of the convertible and rated bonds 29 25 2 (2)
Fair value adjustment on USD1.25bn bonds (138) (159) (58) (46)
Cash restricted for use (53) (54) (77) (66)
Cash and cash equivalents (557) (604) (648) (786)
Net debt excluding mandatory convertible bonds 2,952 2,994 3,105 3,008
Rounding of figures may result in computational discrepancies.
J Summary of Operations by mine
For the three months ended 30 September 2014
Operations in South Africa
(in USD millions, except as otherwise noted)
Great Kopanang Moab Vaal River Mponeng Tau Tona West Wits Surface South Africa Total South Corporate
Noligwa Khotsong Operations Operations operations other Africa
(Operations)
All-in sustaining costs
Cost of sales per financial statements 25 51 57 133 87 82 169 62 (1) 363 1
Amortisation of tangible and intangible assets (2) (10) (12) (24) (19) (14) (33) (4) - (61) (2)
Corporate administration and marketing
related to current operations - - - - - - - - - - 22
Sustaining exploration and study costs - - - - - - - - - - (1)
Total sustaining capital expenditure 1 7 12 20 17 7 24 10 5 59 2
All-in sustaining costs 24 48 57 129 85 75 160 68 4 361 22
Adjusted for non-controlling interests and non
-gold producing companies(1) - - - - - - - - - - 3
All-in sustaining costs adjusted for non-
controlling interests and non-gold producing
companies 24 48 57 129 85 75 160 68 4 361 25
Adjusted for stockpile write-offs - - - - - - - - - - (1)
All-in sustaining costs adjusted for non-
controlling interests, non-gold producing
companies and stockpile write-offs 24 48 57 129 85 75 160 68 4 361 24
All-in sustaining costs 24 48 57 129 85 75 160 68 4 361 22
Non-sustaining Project capex - - - - 7 - 7 - 1 8 -
Technology improvements - - - - - - - - 3 3 -
Non-sustaining exploration and study costs - - - - - - - - - - 1
Corporate and social responsibility costs not
related to current operations - - - - - - - - - - 2
All-in costs 24 48 57 129 92 75 167 68 8 372 25
Adjusted for non-controlling interests and non
-gold producing companies(1) - - - - - - - - - - 2
All-in sustaining costs adjusted for non-
controlling interests and non-gold producing
companies 24 48 57 129 92 75 167 68 8 372 27
Adjusted for stockpile write-offs - - - - - - - - - - (1)
All-in sustaining costs adjusted for non-
controlling interests, non-gold producing
companies and stockpile write-offs 24 48 57 129 92 75 167 68 8 372 26
Gold sold - oz (000)(3) 18 39 54 111 96 63 159 54 - 326 -
All-in sustaining cost (excluding stockpile
write-offs) per unit - USD/oz(4) 1,343 1,211 1,047 1,153 898 1,170 1,007 1,261 - 1,115 -
All-in cost per unit (excluding stockpile
offs) - USD/oz(4) 1,343 1,211 1,054 1,156 974 1,170 1,053 1,261 - 1,147 -
(1) Adjusting for non-controlling interest of items included in calculation, to disclose the attributable portions only. Other consists of heap
leach inventory.
(2) Attributable costs and related expenses of associates and equity accounted joint ventures are included in the calculation of total cash
costs per ounce and total production costs per ounce.
(3) Attributable portion.
(4) In addition to the operational performances of the mines, all-in sustaining cost per ounce, all-in cost per ounce, total cash costs per
ounce and total production costs per ounce are affected by fluctuations in the currency exchange rate. AngloGold Ashanti reports all-
in sustaining cost per ounce and all-in cost per ounce calculated to the nearest US dollar amount and gold sold in ounces. AngloGold
Ashanti reports total cash costs per ounce and total production costs per ounce calculated to the nearest US dollar amount and gold
produced in ounces.
(5) Corporate includes non-gold producing subsidiaries.
(6) Total cash costs per ounce calculation includes heap-leach inventory change.
For the three months ended 30 September 2014
Operations in South Africa
(in USD millions, except as otherwise noted)
Great Kopanang Moab Vaal River Mponeng Tau Tona West Wits Surface South Africa Total South Corporate
Noligwa Khotsong Operations Operations operations other Africa
(Operations)
Total cash costs
Total cash costs per financial statements 22 37 41 100 63 63 126 54 2 282 (3)
Adjusted for non-controlling interests, non-
gold producing companies and other (1) - - - - - - - - - 2
Associates and equity accounted joint
ventures' share of total cash costs(2) - - - - - - - - - -
Total cash costs adjusted for non-
controlling interests and non-gold producing
companies 22 37 41 100 63 63 126 54 2 282 (1)
Retrenchment costs - - - - - - - - 2 2 -
Rehabilitation and other non-cash costs 1 1 1 3 1 1 2 1 - 6 1
Amortisation of tangible assets 2 9 11 22 17 13 30 3 1 56 2
Amortisation of intangible assets - 1 1 2 2 1 3 - - 5 1
Associates and equity accounted joint
ventures' share of total cash costs(2) - - - - - - - - - 2
Total cash costs adjusted for non-
controlling interests and non-gold producing
companies 25 48 54 127 83 78 161 58 5 351 5
Gold produced - oz (000)(3) 17 38 52 107 92 61 153 52 - 314 -
Total cash costs per unit - USD/oz(4) 1,276 993 792 940 688 1,030 825 1,048 - 901 -
Total production costs per unit - USD/oz(4) 1,429 1,297 1,052 1,199 912 1,284 1,061 1,146 - 1,123 -
For the three months ended 30 September 2014
Operations in DRC, Ghana, Guinea, Mali, Namibia and Tanzania
(in USD millions, except as otherwise noted)
DRC GHANA GUINEA MALI NAMIBIA TANZANIA Continental TOTAL CONTINENTAL
Kibali Iduapriem Obuasi Siguiri Morila Sadiola Yatela Navachab Geita Africa other AFRICA
All-in sustaining costs
Cost of sales per financial statements - 43 79 60 - - - - 98 - 280
Amortisation of tangible and intangible
assets - (7) (5) (8) - - - - (22) - (42)
Adjusted for decommissioning amortisation - - - 1 - - - - - 1 2
Associates and equity accounted joint
ventures' share of costs(2) 36 - - - 15 21 4 - - 1 77
Sustaining exploration and study costs - - 3 - - - - - 1 1 5
Total sustaining capital expenditure 1 4 9 4 1 1 - - 21 - 41
All-in sustaining costs 37 40 86 57 16 22 4 - 98 3 363
Adjusted for non-controlling interests and
non -gold producing companies(1) - - - (9) - - - - - (0) (9)
All-in sustaining costs adjusted for non-
controlling interests and non-gold producing
companies 37 40 86 48 16 22 4 - 98 3 354
Adjusted for stockpile write-offs - - - - - - - - (2) - (2)
All-in sustaining costs adjusted for non-
controlling interests, non-gold producing
companies and stockpile write-offs 37 40 86 48 16 22 4 - 96 3 352
All-in sustaining costs 37 40 86 57 16 22 4 - 98 3 363
Non-sustaining Project capex 36 - 9 - - - - - - - 45
Non-sustaining exploration and study costs 1 - - 1 - - - - - - 2
All-in costs 74 40 95 58 16 22 4 - 98 3 410
Adjusted for non-controlling interests and
non -gold producing companies(1) - - - (9) - - - - - (0) (9)
All-in sustaining costs adjusted for non-
controlling interests and non-gold producing
companies 74 40 95 49 16 22 4 - 98 3 401
Adjusted for stockpile write-offs - - - - - - - - (2) - (2)
All-in sustaining costs adjusted for non-
controlling interests, non-gold producing
companies and stockpile write-offs 74 40 95 49 16 22 4 - 96 3 399
Gold sold - oz (000)(3) 63 41 73 61 10 21 2 - 107 - 379
All-in sustaining cost (excluding stockpile
write-offs) per unit - USD/oz(4) 580 984 1,169 798 1,660 1,062 1,858 - 907 - 928
All-in cost per unit (excluding stockpile
write-offs) - USD/oz(4) 1,159 984 1,295 818 1,660 1,062 1,858 - 907 - 1,052
For the three months ended 30 September 2014
Operations in DRC, Ghana, Guinea, Mali, Namibia and Tanzania
(in USD millions, except as otherwise noted)
DRC GHANA GUINEA MALI NAMIBIA TANZANIA Continental TOTAL CONTINENTAL
Kibali Iduapriem Obuasi Siguiri Morila Sadiola Yatela Navachab Geita Africa other AFRICA
Total cash costs
Total cash costs per financial statements - 39 75 62 - - - - 83 1 260
Adjusted for non-controlling interests, non-
gold producing companies and other(1) - - - (9) - - - - - - (9)
Associates and equity accounted joint
ventures' share of total cash costs(2) 37 - - - 15 20 4 - - - 76
Total cash costs adjusted for non-
controlling interests and non-gold
producing companies 37 39 75 53 15 20 4 - 83 1 327
Rehabilitation and other non-cash costs - 1 - (1) - - - - 1 (1) -
Amortisation of tangible assets - 7 5 8 - - - - 22 (1) 41
Amortisation of intangible assets - - - - - - - - - 1 1
Adjusted for non-controlling interests, non
gold producing companies(1) - - - (1) - - - - - - (1)
Associates and equity accounted joint
ventures' share of total cash costs (2) 18 - - - 3 7 - - - - 28
Total cash costs adjusted for non-
controlling interests and non-gold
producing companies 55 47 80 59 18 27 4 - 106 - 396
Gold produced - oz (000)(3) 65 45 78 72 10 21 2 - 116 - 410
Total cash costs per unit - USD/oz(4) 563 866 966 741 1,525 981 1,672 - 715 - 799
Total production costs per unit - USD/oz(4) 846 1,033 1,031 816 1,849 1,309 1,762 - 907 - 970
For the three months ended 30 September 2014
Operations in Australia, United States of America, Argentina and Brazil
(in USD millions, except as otherwise noted)
Australia TOTAL UNITED ARGENTINA BRAZIL
Sunrise Dam Tropicana Australia AUSTRALIA STATES OF Cerro AngloGold Serra Americas TOTAL
other AMERICA Vanguardia Ashanti Grande other AMERICAS
Cripple Creek Mineracao
& Victor
All-in sustaining costs
Cost of sales per financial statements 85 83 5 173 53 49 95 39 - 236
Amortisation of tangible and intangible assets (14) (24) (1) (39) (1) (8) (26) (12) - (47)
Adjusted for decommissioning amortisation - 1 - 1 - - - - - -
Sustaining exploration and study costs - 1 2 3 1 - 3 - 3 7
Total sustaining capital expenditure 8 5 - 13 5 14 33 9 1 62
All-in sustaining costs 79 66 6 151 58 55 105 36 4 258
Adjusted for non-controlling interests and non -
gold producing companies(1) - - - - - (4) - - (4) (8)
All-in sustaining costs adjusted for non-
controlling interests, non-gold producing
companies and stockpile write-offs 79 66 6 151 58 51 105 36 - 250
All-in sustaining costs 79 66 6 151 58 55 105 36 4 258
Non-sustaining Project capex - - - - 31 - - - - 31
Non-sustaining exploration and study costs - - 2 2 - - - - 18 18
Corporate and social responsibility costs not
related to current operations - - - - - - 4 - - 4
All-in costs 79 66 8 153 89 55 109 36 22 311
Adjusted for non-controlling interests and non -
gold producing companies(1) - - - - - (4) - - - (4)
All-in sustaining costs adjusted for non-
controlling interests, non-gold producing
companies and stockpile write-offs 79 66 8 153 89 51 109 36 22 307
Gold sold - oz (000)(3) 71 83 - 154 55 54 100 33 - 242
All-in sustaining cost (excluding stockpile
write-offs) per unit - USD/oz(4) 1,116 800 - 980 1,075 956 1,037 1,097 - 1,035
All-in cost per unit (excluding stockpile write-
offs) - USD/oz(4) 1,116 800 - 993 1,647 957 1,076 1,110 - 1,270
For the three months ended 30 September 2014
Operations in Australia, United States of America, Argentina and Brazil
(in USD millions, except as otherwise noted)
Australia TOTAL UNITED ARGENTINA BRAZIL
Sunrise Dam Tropicana Australia AUSTRALIA STATES OF Cerro AngloGold Serra Americas TOTAL
other AMERICA Vanguardia Ashanti Grande other AMERICAS
Cripple Creek Mineracao
& Victor
Total cash costs
Total cash costs per financial statements 67 61 3 131 54 44 70 26 - 194
Adjusted for non-controlling interests, non-gold
producing companies and other(1) - - - - (7) (3) - - - (10)
Total cash costs adjusted for non-controlling
interests and non-gold producing companies 67 61 3 131 47 41 70 26 - 184
Retrenchment costs - - 1 1 - - 2 - - 2
Rehabilitation and other non-cash costs - - - - 2 3 (4) (1) 1 1
Amortisation of tangible assets 14 24 - 38 - 8 25 12 - 45
Amortisation of intangible assets - - - - - - 2 - - 2
Adjusted for non-controlling interests, non-gold
producing companies(1) - - - - 4 (1) - - - 3
Total cash costs adjusted for non-controlling
interests and non-gold producing companies 81 85 4 170 53 51 95 37 1 237
Gold produced - oz (000)(3) 68 84 - 152 56 62 101 32 - 251
Total cash costs per unit - USD/oz(4) 982 721 - 861 827(6) 656 699 803 - 730
Total production costs per unit - USD/oz(4) 1,187 1,005 - 1,121 951 819 943 1,173 - 943
For the three months ended 30 June 2014
Operations in South Africa
(in USD millions, except as otherwise noted)
Great Kopanang Moab Vaal River Mponeng Tau Tona West Wits Surface South Africa Total South Corporate
Noligwa Khotsong Operations Operations operations other Africa
(Operations)
All-in sustaining costs
Cost of sales per financial statements 25 51 53 129 80 63 143 61 - 333 3
Amortisation of tangible and intangible assets (2) (12) (13) (27) (19) (14) (33) (8) 1 (67) (2)
Corporate administration and marketing
related to current operations - - - - - - - - - - 20
Total sustaining capital expenditure 3 7 9 19 18 11 29 12 (1) 59 1
All-in sustaining costs 26 46 49 121 79 60 139 65 - 325 22
All-in sustaining costs adjusted for non-
controlling interests, non-gold producing
companies and stockpile write-offs 26 46 49 121 79 60 139 65 - 325 22
All-in sustaining costs 26 46 49 121 79 60 139 65 - 325 22
Non-sustaining Project capex - - 1 1 8 - 8 - - 9 -
Technology improvements - - - - - - - - 5 5 -
Non-sustaining exploration and study costs - - - - - - - - - - 1
Corporate and social responsibility costs not
related to current operations - - - - - - - - - - 2
All-in costs 26 46 50 122 87 60 147 65 5 339 25
Adjusted for non-controlling interests and non
-gold producing companies(1) - - - - - - - - - - (1)
All-in sustaining costs adjusted for non-
controlling interests, non-gold producing
companies and stockpile write-offs 26 46 50 122 87 60 147 65 5 339 24
Gold sold - oz (000)(3) 21 39 57 116 85 53 138 52 - 306 -
All-in sustaining cost (excluding stockpile
write-offs) per unit - USD/oz(4) 1,206 1,193 880 1,042 927 1,135 1,007 1,258 - 1,064 -
All-in cost per unit (excluding stockpile write-
offs) - USD/oz(4) 1,206 1,193 892 1,048 1,020 1,135 1,064 1,258 - 1,109 -
(1) Adjusting for non-controlling interest of items included in calculation, to disclose the attributable portions only. Other consists of heap
leach inventory.
(2) Attributable costs and related expenses of associates and equity accounted joint ventures are included in the calculation of total cash
costs per ounce and total production costs per ounce.
(3) Attributable portion.
(4) In addition to the operational performances of the mines, all-in sustaining cost per ounce, all-in cost per ounce, total cash costs per
ounce and total production costs per ounce are affected by fluctuations in the currency exchange rate. AngloGold Ashanti reports all-
in sustaining cost per ounce and all-in cost per ounce calculated to the nearest US dollar amount and gold sold in ounces. AngloGold
Ashanti reports total cash costs per ounce and total production costs per ounce calculated to the nearest US dollar amount and gold
produced in ounces.
(5) Corporate includes non-gold producing subsidiaries.
(6) Total cash costs per ounce calculation includes heap-leach inventory change.
For the three months ended 30 June 2014
Operations in South Africa
(in USD millions, except as otherwise note)
Great Kopanang Moab Vaal River Mponeng Tau Tona West Wits Surface South Africa Total South Corporate(5)
Noligwa Khotsong Operations Operations operations other Africa
(Operations)
Total cash costs
Total cash costs per financial statements 23 41 42 106 63 51 114 56 (1) 275 1
Adjusted for non-controlling interests, non-g
producing companies and other(1) - - - - - - - - - - -
Associates and equity accounted joint ventures'
share of total cash costs(2) - - - - - - - - - - -
Total cash costs adjusted for n
controlling interests and non-gold produc
companies 23 41 42 106 63 51 114 56 (1) 275 1
Retrenchment costs - - - 1 1 1 1 - 1 3 -
Rehabilitation and other non-cash costs - - - - 1 - 1 - 1 2 (1)
Amortisation of tangible assets 2 11 12 24 17 13 31 8 (1) 62 1
Amortisation of intangible assets - 1 1 2 1 1 2 1 - 5 1
Adjusted for non-controlling interests, non-
gold producing companies(1) - - - - - - - - - - (12)
Associates and equity accounted joint
ventures' share of total cash costs(2) - - - - - - - - - - 1
Total cash costs adjusted for non-
controlling interests and non-gold producing
companies 25 53 55 133 83 66 149 65 - 347 (9)
Gold produced - oz (000)(3) 22 40 59 120 88 56 144 55 - 319 -
Total cash costs per unit - USD/oz(4) 1,060 1,021 707 875 714 923 794 1,016 - 863 -
Total production costs per unit - USD/oz(4) 1,186 1,331 937 1,113 941 1,195 1,039 1,171 - 1,089 -
For the three months ended 30 June 2014
Operations in DRC, Ghana, Guinea, Mali, Namibia and Tanzania
(in USD millions, except as otherwise noted)
DRC GHANA GUINEA MALI NAMIBIA TANZANIA Continental TOTAL CONTINENTAL
Kibali Iduapriem Obuasi Siguiri Morila Sadiola Yatela Navachab Geita Africa other AFRICA
All-in sustaining costs
Cost of sales per financial statements - 49 81 91 - - - 12 89 2 324
Amortisation of tangible and intangible assets - (7) (4) (8) - - - - (16) (1) (36)
Adjusted for decommissioning amortisation - - - 1 - - - - - - 1
Associates and equity accounted joint
ventures' share of costs(2) 28 - - - 12 26 7 - - (1) 72
Sustaining exploration and study costs - - - - - - - - - 1 1
Total sustaining capital expenditure - 3 16 9 - 2 - 1 29 - 60
All-in sustaining costs 28 45 93 93 12 28 7 13 102 1 422
Adjusted for non-controlling interests and non
-gold producing companies(1) - - - (14) - - - - - - (14)
All-in sustaining costs adjusted for non-
controlling interests and non-gold producing
companies 28 45 93 79 12 28 7 13 102 1 408
Adjusted for stockpile write-offs - - - - - - - (2) (7) - (9)
All-in sustaining costs adjusted for non-
controlling interests, non-gold producing
companies and stockpile write-offs 28 45 93 79 12 28 7 11 95 1 399
All-in sustaining costs 28 45 93 93 12 28 7 13 102 1 422
Non-sustaining Project capex 49 - 12 - - - - - - - 61
Non-sustaining exploration and study costs 1 - - 2 - - - - - - 3
All-in costs 78 45 105 95 12 28 7 13 102 1 486
Adjusted for non-controlling interests and non
-gold producing companies(1) - - - (14) - - - - - - (14)
All-in sustaining costs adjusted for non-
controlling interests and non-gold producing
companies 78 45 105 81 12 28 7 13 102 1 472
Adjusted for stockpile write-offs - - - - - - - (2) (7) - (9)
All-in sustaining costs adjusted for non-
controlling interests, non-gold producing
companies and stockpile write-offs 78 45 105 81 12 28 7 11 95 1 463
Gold sold - oz (000)(3) 38 46 65 86 10 25 3 17 110 - 401
All-in sustaining cost (excluding stockpile
write-offs) per unit - USD/oz(4) 738 998 1,420 916 1,173 1,078 2,836 651 878 - 998
All-in cost per unit (excluding stockpile write-
offs) - USD/oz(4) 2,047 998 1,605 935 1,173 1,078 2,836 651 878 - 1,157
For the three months ended 30 June 2014
Operations in DRC, Ghana, Guinea, Mali, Namibia and Tanzania
(in USD millions, except as otherwise noted)
DRC GHANA GUINEA MALI NAMIBIA TANZANIA Continental TOTAL CONTINENTAL
Kibali Iduapriem Obuasi Siguiri Morila Sadiola Yatela Navachab Geita Africa other AFRICA
Total cash costs
Total cash costs per financial statements - 43 75 74 - - - 12 73 - 277
Adjusted for non-controlling interests, non-
gold producing companies and other(1) - - - (11) - - - - - - (11)
Associates and equity accounted joint
ventures' share of total cash costs(2) 29 - - - 11 22 5 - - 1 68
Total cash costs adjusted for non-controlling
interests and non-gold producing companies 29 43 75 63 11 22 5 12 73 1 334
Retrenchment costs - - - - - - - - - - -
Rehabilitation and other non-cash costs - 1 1 3 - - - - 1 1 7
Amortisation of tangible assets - 7 4 8 - - - - 16 - 35
Amortisation of intangible assets - - - - - - - - - 1 1
Adjusted for non-controlling interests, non-
gold producing companies(1) - - - (2) - - - - - - (2)
Associates and equity accounted joint
ventures' share of total cash costs (2) 18 - - - 3 7 3 - - (1) 30
Total cash costs adjusted for non-controlling
interests and non-gold producing companies 47 51 80 72 14 29 8 12 90 2 405
Gold produced - oz (000)(3) 41 47 64 80 10 23 2 17 110 - 395
Total cash costs per unit - USD/oz(4) 717 911 1,175 777 1,137 957 1,931 733 667 - 846
Total production costs per unit - USD/oz(4) 1,149 1,077 1,250 898 1,427 1,246 3,027 733 823 - 1,024
For the three months ended 30 June 2014
Operations in Australia, United States of America, Argentina and Brazil
(in USD millions, except as otherwise noted)
Australia TOTAL UNITED ARGENTINA BRAZIL
Sunrise Dam Tropicana Australia AUSTRALIA STATES OF Cerro AngloGold Serra Americas TOTAL
other AMERICA Vanguardia A shanti Grande other AMERICAS
Cripple Creek Mineracao
& Victor
All-in sustaining costs
Cost of sales per financial statements 90 72 5 167 59 51 89 39 (1) 237
Amortisation of tangible and intangible assets (12) (25) (2) (39) - (8) (25) (11) - (44)
Adjusted for decommissioning amortisation - 1 - 1 - - - - - -
Corporate administration and marketing related
to current operations - - (1) (1) - - - - - -
Sustaining exploration and study costs - 1 1 2 - - 2 - 3 5
Total sustaining capital expenditure 10 14 - 24 6 14 31 10 - 61
All-in sustaining costs 88 63 3 154 65 57 97 38 2 259
Adjusted for non-controlling interests and non -
gold producing companies(1) - - - - - (4) - - (3) (7)
All-in sustaining costs adjusted for non-
controlling interests, non-gold producing
companies and stockpile write-offs 88 63 3 154 65 53 97 38 (1) 252
All-in sustaining costs 88 63 3 154 65 57 97 38 2 259
Non-sustaining Project capex - - - - 37 - - - - 37
Non-sustaining exploration and study costs - - 2 2 - - - - 17 17
Corporate and social responsibility costs not
related to current operations - - - - - - 4 - - 4
All-in costs 88 63 5 156 102 57 101 38 19 317
Adjusted for non-controlling interests and non-
gold producing companies(1) - - - - - (4) - - - (4)
All-in sustaining costs adjusted for non-
controlling interests, non-gold producing
companies and stockpile write-offs 88 63 5 156 102 53 101 38 19 313
Gold sold - oz (000)(3) 57 90 - 147 53 57 93 32 - 234
All-in sustaining cost (excluding stockpile
write-offs) per unit - USD/oz(4) 1,527 689 - 1,048 1,221 935 1,043 1,212 - 1,077
All-in cost per unit (excluding stockpile write-
offs) - USD/oz(4) 1,527 689 - 1,063 1,913 936 1,088 1,212 - 1,335
For the three months ended 30 June 2014
Operations in Australia, United States of America, Argentina and Brazil
(in USD millions, except as otherwise noted)
Australia TOTAL UNITED ARGENTINA BRAZIL
Sunrise Dam Tropicana Australia AUSTRALIA STATES OF Cerro AngloGold Serra Americas TOTAL
other AMERICA Vanguardia Ashanti Grande other AMERICAS
Cripple Creek Mineracao
& Victor
Total cash costs
Total cash costs per financial statements 81 46 5 132 54 46 63 27 (1) 189
Adjusted for non-controlling interests, non-gold
producing companies and other(1) - - - - (10) (3) - - - (13)
Total cash costs adjusted for non-controlling
interests and non-gold producing companies 81 46 5 132 44 43 63 27 (1) 176
Rehabilitation and other non-cash costs 1 5 - 6 3 1 (2) - 1 3
Amortisation of tangible assets 12 25 2 39 - 8 23 11 - 42
Amortisation of intangible assets - - - - - - 1 - 1 2
Adjusted for non-controlling interests, non-gold
producing companies(1) - - - - 22 (1) - - 1 22
Total cash costs adjusted for non-controlling
interests and non-gold producing companies 94 76 7 177 69 51 85 38 2 245
Gold produced - oz (000)(3) 62 93 - 155 49 62 88 30 - 229
Total cash costs per unit - USD/oz(4) 1,308 498 - 850 899(6) 682 717 879 - 765
Total production costs per unit - USD/oz(4) 1,523 819 - 1,137 1,205 822 984 1,238 - 1,018
For the three months ended 30 September 2013
Operations in South Africa
(in USD millions, except as otherwise noted)
Great Kopanang Moab Vaal River Mponeng Tau Tona West Wits Surface South Africa Total South Corporate
Noligwa Khotsong Operations Operations operations other Africa
(Operations)
All-in sustaining costs
Cost of sales per financial statements 28 60 59 147 94 76 170 60 (1) 376 2
Amortisation of tangible and intangible assets (2) (11) (12) (25) (20) (14) (34) (4) 1 (62) 1
Corporate administration and marketing
related to current operations - - - - - - - - 1 1 34
Associates and equity accounted joint
ventures' share of costs(2) - - - - - - - - - - (2)
Total sustaining capital expenditure 3 11 20 34 26 14 40 4 - 78 2
All-in sustaining costs 29 60 67 156 100 76 176 60 1 393 37
Adjusted for non-controlling interests and non
-gold producing companies(1) - - - - - - - - - - (1)
All-in sustaining costs adjusted for non-
controlling interests, non-gold producing
companies and stockpile write-offs 29 60 67 156 100 76 176 60 1 393 36
All-in sustaining costs 29 60 67 156 100 76 176 60 1 393 37
Non-sustaining Project capex - - 11 11 19 - 19 9 (1) 38 (1)
Technology improvements - - - - - - - - 4 4 -
Non-sustaining exploration and study costs - - - - - - - - - - 3
Corporate and social responsibility costs not
related to current operations - - - - - - - - - - 5
All-in costs 29 60 78 167 119 76 195 69 4 435 44
Adjusted for non-controlling interests and non
-gold producing companies(1) - - - - - - - - - - 1
All-in sustaining costs adjusted for non-
controlling interests, non-gold producing
companies and stockpile write-offs 29 60 78 167 119 76 195 69 4 435 45
Gold sold - oz (000)(3) 19 47 62 128 92 63 155 61 - 344 -
All-in sustaining cost (excluding stockpile
write-offs) per unit - USD/oz(4) 1,516 1,273 1,082 1,216 1,085 1,207 1,135 993 - 1,143 -
All-in cost per unit (excluding stockpile write-
offs) - USD/oz(4) 1,517 1,272 1,256 1,300 1,289 1,210 1,257 1,135 - 1,266 -
(1) Adjusting for non-controlling interest of items included in calculation, to disclose the attributable portions only. Other consists of heap
leach inventory.
(2) Attributable costs and related expenses of associates and equity accounted joint ventures are included in the calculation of total cash
costs per ounce and total production costs per ounce.
(3) Attributable portion.
(4) In addition to the operational performances of the mines, all-in sustaining cost per ounce, all-in cost per ounce, total cash costs per
ounce and total production costs per ounce are affected by fluctuations in the currency exchange rate. AngloGold Ashanti reports all-
in sustaining cost per ounce and all-in cost per ounce calculated to the nearest US dollar amount and gold sold in ounces. AngloGold
Ashanti reports total cash costs per ounce and total production costs per ounce calculated to the nearest US dollar amount and gold
produced in ounces.
(5) Corporate includes non-gold producing subsidiaries.
(6) Total cash costs per ounce calculation includes heap-leach inventory change.
For the three months ended 30 September 2013
Operations in South Africa
(in USD millions, except as otherwise noted)
Great Kopanang Moab Vaal River Mponeng Tau Tona West Wits Surface South Africa Total South Corporate(5)
Noligwa Khotsong Operations Operations operations other Africa
(Operations)
Total cash costs
Total cash costs per financial statements 23 43 40 106 67 54 121 54 (1) 280 (1)
Adjusted for non-controlling interests, non-
gold producing companies and other(1) - - - - - - - - - - 1
Total cash costs adjusted for non-
controlling interests and non-gold producing
companies 23 43 40 106 67 54 121 54 280 -
Retrenchment costs 1 2 4 7 4 5 9 - - 16 (1)
Rehabilitation and other non-cash costs - 1 1 2 (1) - (1) 1 - 2 -
Amortisation of tangible assets 2 10 11 23 19 13 32 4 (2) 57 2
Amortisation of intangible assets - 1 1 2 1 1 2 - 4 - -
Associates and equity accounted joint
ventures' share of total cash costs(2) - - - - - - - - - - (1)
Total cash costs adjusted for non-
controlling interests and non-gold producing
companies 26 57 57 140 90 73 163 59 (3) 359 -
Gold produced - oz (000)(3) 17 44 60 122 88 61 149 59 329 - -
Total cash costs per unit - USD/oz(4) 1,298 960 671 867 757 897 814 915 - 851 -
Total production costs per unit - USD/oz(4) 1,503 1,267 937 1,138 1,020 1,203 1,095 990 - 1,092 -
For the three months ended 30 September 2013
Operations in DRC, Ghana, Guinea, Mali, Namibia and Tanzania
(in USD millions, except as otherwise noted)
DRC GHANA GUINEA MALI NAMIBIA TANZANIA Continental TOTAL CONTINENTAL
Kibali Iduapriem Obuasi Siguiri Morila Sadiola Yatela Navachab Geita Africa other AFRICA
All-in sustaining costs
Cost of sales per financial statements - 42 100 90 - - - 11 100 4 347
Amortisation of tangible and intangible assets - (7) (1) (7) - - - - (24) (4) (43)
Adjusted for decommissioning amortisation - - - 1 - - - - - 1 2
Corporate administration and marketing
related to current operations - - - - - - - - - 1 1
Associates and equity accounted joint
ventures' share of costs(2) 1 - - - 10 35 7 - - 1 54
Sustaining exploration and study costs - (1) 1 4 - - - - 2 1 7
Total sustaining capital expenditure - 3 32 4 5 7 - 2 36 (1) 88
All-in sustaining costs 1 37 132 92 15 42 7 13 114 3 456
Adjusted for non-controlling interests and non
-gold producing companies(1) - - - (14) - - - - - (0) (14)
All-in sustaining costs adjusted for non-
controlling interests, non-gold producing
companies and stockpile write-offs 1 37 132 78 15 42 7 13 114 3 442
All-in sustaining costs 1 37 132 92 15 42 7 13 114 3 456
Non-sustaining Project capex 90 1 11 - - 1 - - 1 6 110
Non-sustaining exploration and study costs - - - 2 - - - - - 6 8
All-in costs 91 38 143 94 15 43 7 13 115 15 574
Adjusted for non-controlling interests and non-
gold producing companies(1) - - - (14) - - - - - (2) (16)
All-in sustaining costs adjusted for non-
controlling interests, non-gold producing
companies and stockpile write-offs 91 38 143 80 15 43 7 13 115 13 558
Gold sold - oz (000)(3) - 60 69 77 12 21 5 19 126 - 387
All-in sustaining cost (excluding stockpile
write-offs) per unit - USD/oz(4) - 633 1,910 1,036 1,152 1,988 1,483 653 914 - 1,141
All-in cost per unit (excluding stockpile write-
offs) - USD/oz(4) - 651 2,072 1,061 1,152 2,035 1,582 653 924 - 1,440
For the three months ended 30 September 2013
Operations in DRC, Ghana, Guinea, Mali, Namibia and Tanzania
(in USD millions, except as otherwise noted)
DRC GHANA GUINEA MALI NAMIBIA TANZANIA Continental TOTAL CONTINENTAL
Kibali Iduapriem Obuasi Siguiri Morila Sadiola Yatela Navachab Geita Africa other AFRICA
Total cash costs
Total cash costs per financial statements - 36 74 80 - - - 10 70 (1) 269
Adjusted for non-controlling interests, non-
gold producing companies and other(1) - - - (12) - - - - - - (12)
Associates and equity accounted joint
ventures' share of total cash costs(2) - - - - 9 35 6 - - - 50
Total cash costs adjusted for non-controlling
interests and non-gold producing companies - 36 74 68 9 35 6 10 70 (1) 307
Retrenchment costs - - 27 - - - - - - - 27
Rehabilitation and other non-cash costs - (2) (2) 1 - - - - 1 1 (1)
Amortisation of tangible assets - 7 1 7 - - - - 24 1 40
Amortisation of intangible assets - - - - - - - - - 1 1
Adjusted for non-controlling interests, non-
gold producing companies(1) - - - (1) - - - - - - (1)
Associates and equity accounted joint
ventures' share of total cash costs(2) - - - - 1 - 1 - - - 2
Total cash costs adjusted for non-controlling
interests and non-gold producing companies - 41 100 75 10 35 7 10 95 2 375
Gold produced - oz (000)(3) - 62 68 69 12 20 5 19 127 - 383
Total cash costs per unit - USD/oz(4) - 580 1,082 987 757 1,738 1,422 502 549 - 804
Total production costs per unit - USD/oz(4) - 664 1,465 1,079 808 1,758 1,547 501 624 - 979
For the three months ended 30 September 2013
Operations in Australia, United States of America, Argentina and Brazil
(in USD millions, except as otherwise noted)
Australia TOTAL UNITED ARGENTINA BRAZIL
Sunrise Dam Tropicana Australia AUSTRALIA STATES OF Cerro AngloGold Serra Americas TOTAL
other AMERICA Vanguardia Ashanti Grande other AMERICAS
Cripple Creek Mineracao
& Victor
All-in sustaining costs
Cost of sales per financial statements 88 - 7 95 61 55 93 35 - 244
Amortisation of tangible and intangible assets (15) - - (15) - (6) (21) (12) (1) (40)
Adjusted for decommissioning amortisation - - - - - - (1) - - (1)
Corporate administration and marketing
related to current operations - - - - 3 - 1 - 1 5
Sustaining exploration and study costs - 1 1 2 1 1 1 2 - 5
Total sustaining capital expenditure 4 12 2 18 3 9 24 10 - 46
All-in sustaining costs 77 13 10 100 68 59 97 35 - 259
Adjusted for non-controlling interests and non - -
gold producing companies(1) - - - - - (4) - - - (4)
All-in sustaining costs adjusted for non-
controlling interests, non-gold producing
companies and stockpile write-offs 77 13 10 100 68 55 97 35 - 255
All-in sustaining costs 77 13 10 100 68 59 97 35 - 259
Non-sustaining Project capex - 31 - 31 33 1 1 1 2 38
Non-sustaining exploration and study costs - - 3 3 - - 1 - 28 29
Corporate and social responsibility costs not
related to current operations - - - - - - 2 - - 2
All-in costs 77 44 13 134 101 60 101 36 30 328
Adjusted for non-controlling interests and non-
gold producing companies(1) - - - - - (5) - - - (5)
All-in sustaining costs adjusted for non-
controlling interests, non-gold producing
companies and stockpile write-offs 77 44 13 134 101 55 101 36 30 323
Gold sold - oz (000)(3) 63 - - 63 68 66 98 36 - 268
All-in sustaining cost (excluding stockpile
write-offs) per unit - USD/oz(4) 1,229 - - 1,582 1,006 823 996 979 - 957
All-in cost per unit (excluding stockpile write
offs) - USD/oz(4) 1,229 - - 2,115 1,488 847 1,040 999 - 1,214
For the three months ended 30 September 2013
Operations in Australia, United States of America, Argentina and Brazil
(in USD millions, except as otherwise noted)
Australia TOTAL UNITED ARGENTINA BRAZIL
Sunrise Dam Tropicana Australia AUSTRALIA STATES OF Cerro AngloGold Serra Americas TOTAL
other AMERICA Vanguardia Ashanti Grande other AMERICAS
Cripple Creek Mineracao
& Victor
Total cash costs
Total cash costs per financial statements 73 - 6 79 59 42 62 25 - 188
Adjusted for non-controlling interests, non-gold
producing companies and other(1) - - - - (8) (3) - - - (11)
Total cash costs adjusted for non-controlling
interests and non-gold producing companies 73 - 6 79 51 39 62 25 - 177
Retrenchment costs - - 1 1 - - - - 1 1
Rehabilitation and other non-cash costs (1) - - (1) 1 (1) 7 (1) - 6
Amortisation of tangible assets 15 - - 15 - 6 21 12 - 39
Amortisation of intangible assets - - - - - - 1 - - 1
Adjusted for non-controlling interests, non-gold
producing companies(1) - - - - 9 - - - (1) 8
Total cash costs adjusted for non-controlling
interests and non-gold producing companies 87 - 7 94 61 44 91 36 - 232
Gold produced - oz (000)(3) 62 - - 62 69 63 103 35 - 270
Total cash costs per unit - USD/oz(4) 1,184 - - 1,270 744(6) 614 602 709 - 656
Total production costs per unit - USD/oz(4) 1,403 - - 1,510 886 694 881 1,025 - 858
For the nine months 30 September 2014
Operations in South Africa
(in USD millions, except as otherwise noted)
Great Kopanang Moab Vaal River Mponeng Tau Tona West Wits Surface South Africa Total South Corporate
Noligwa Khotsong Operations Operations operations other Africa
(Operations)
All-in sustaining costs
Cost of sales per financial statements 72 154 158 384 241 203 444 179 1 1,008 4
Amortisation of tangible and intangible assets (6) (41) (36) (83) (55) (45) (100) (17) - (200) (6)
Adjusted for decommissioning amortisation - - - - - - - 1 (1) - (1)
Inventory writedown to net realisable value
and other stockpile adjustments - - - - - - - - 1 1 (1)
Corporate administration and marketing
related to current operations - - - - - - - - 1 1 64
Total sustaining capital expenditure 4 19 28 51 49 24 73 31 5 160 3
All-in sustaining costs 70 132 150 352 235 182 417 194 7 970 63
Adjusted for non-controlling interests and non
-gold producing companies(1) - - - - - - - - - - 5
All-in sustaining costs adjusted for non-
controlling interests and non-gold producing
companies 70 132 150 352 235 182 417 194 7 970 68
Adjusted for stockpile write-offs - - - - - - - - (1) (1) -
All-in sustaining costs adjusted for non-
controlling interests, non-gold producing
companies and stockpile write-offs 70 132 150 352 235 182 417 194 6 969 68
All-in sustaining costs 70 132 150 352 235 182 417 194 7 970 63
Non-sustaining Project capex - - 1 1 23 - 23 - 1 25 -
Technology improvements - - - - - - - - 12 12 -
Non-sustaining exploration and study costs - - - - - - - - - - 3
Corporate and social responsibility costs not
related to current operations - - - - - - - - - - 6
All-in costs 70 132 151 353 258 182 440 194 20 1,007 72
Adjusted for non-controlling interests and non
-gold producing companies(1) - - - - - - - - - - 4
All-in sustaining costs adjusted for non-
controlling interests and non-gold producing
companies 70 132 151 353 258 182 440 194 20 1,007 76
Adjusted for stockpile write-offs - - - - - - - - (1) (1) -
All-in sustaining costs adjusted for non-
controlling interests, non-gold producing
companies and stockpile write-offs 70 132 151 353 258 182 440 194 19 1,006 76
Gold sold - oz (000)(3) 56 107 166 329 257 169 425 166 - 922 -
All-in sustaining cost (excluding stockpile
write-offs) per unit - USD/oz(4) 1,248 1,234 909 1,072 917 1,081 982 1,165 - 1,054 -
All-in cost per unit (excluding stockpile write-
offs) - USD/oz(4) 1,248 1,234 916 1,076 1,009 1,081 1,037 1,165 - 1,093 -
(1) Adjusting for non-controlling interest of items included in calculation, to disclose the attributable portions only. Other consists of heap
leach inventory.
(2) Attributable costs and related expenses of associates and equity accounted joint ventures are included in the calculation of total cash
costs per ounce and total production costs per ounce.
(3) Attributable portion.
(4) In addition to the operational performances of the mines, all-in sustaining cost per ounce, all-in cost per ounce, total cash costs per
ounce and total production costs per ounce are affected by fluctuations in the currency exchange rate. AngloGold Ashanti reports all-
in sustaining cost per ounce and all-in cost per ounce calculated to the nearest US dollar amount and gold sold in ounces. AngloGold
Ashanti reports total cash costs per ounce and total production costs per ounce calculated to the nearest US dollar amount and gold
produced in ounces.
(5) Corporate includes non-gold producing subsidiaries.
(6) Total cash costs per ounce calculation includes heap-leach inventory change.
For the nine months ended 30 September 2014
Operations in South Africa
(in USD millions, except as otherwise noted)
Great Kopanang Moab Vaal River Mponeng Tau Tona West Wits Surface South Africa Total South Corporate(5)
Noligwa Khotsong Operations Operations operations other Africa
(Operations)
Total cash costs
Total cash costs per financial statements 64 110 118 292 180 155 335 160 - 787 (1)
Adjusted for non-controlling interests, non
gold producing companies and other (1) - - - - - - - - - - 5
Total cash costs adjusted for non-
controlling interests and non-gold producing
companies 64 110 118 292 180 155 335 160 - 787 4
Retrenchment costs 1 2 1 4 3 2 5 - - 9 -
Rehabilitation and other non-cash costs 1 2 3 6 3 2 5 2 - 13 1
Amortisation of tangible assets 5 39 34 78 50 42 92 16 - 186 5
Amortisation of intangible assets 1 2 3 6 4 3 7 2 (1) 14 3
Adjusted for non-controlling interests, non
gold producing companies(1) - - - - - - - - - - (1)
Total cash costs adjusted for non
controlling interests and non-gold producin
companies 72 155 159 386 240 204 444 180 (1) 1,009 12
Gold produced - oz (000)(3) 56 107 166 329 257 169 425 167 - 923 -
Total cash costs per unit - USD/oz(4) 1,146 1,026 714 889 703 916 788 961 - 855 -
Total production costs per unit - USD/oz(4) 1,283 1,448 957 1,172 940 1,206 1,046 1,078 - 1,097 -
For the nine months ended 30 September 2014
Operations in DRC, Ghana, Guinea, Mali, Namibia and Tanzania
(in USD millions, except as otherwise noted)
DRC GHANA GUINEA MALI NAMIBIA TANZANIA Continental TOTAL CONTINENTAL
Kibali Iduapriem Obuasi Siguiri Morila Sadiola Yatela Navachab Geita Africa other AFRICA
All-in sustaining costs
Cost of sales per financial statements - 144 230 229 - - - 26 297 3 929
Amortisation of tangible and intangible assets - (18) (13) (23) - - - - (56) (3) (113)
Adjusted for decommissioning amortisation - - - 3 - - - - 1 - 4
Associates and equity accounted joint
ventures' share of costs(2) 91 - - - 38 70 19 - - - 218
Sustaining exploration and study costs - - 3 1 - - - - 1 1 6
Total sustaining capital expenditure 3 12 38 22 5 3 - 1 87 - 171
All-in sustaining costs 94 138 258 232 43 73 19 27 330 1 1,215
Adjusted for non-controlling interests and non
-gold producing companies(1) - - - (35) - - - - - (0) (35)
All-in sustaining costs adjusted for non-
controlling interests and non-gold producing
companies 94 138 258 197 43 73 19 27 330 1 1,180
Adjusted for stockpile write-offs - - - - - - - (2) (9) - (11)
All-in sustaining costs adjusted for non-
controlling interests, non-gold producing
companies and stockpile write-offs 94 138 258 197 43 73 19 25 321 1 1,169
All-in sustaining costs 94 138 258 232 43 73 19 27 330 1 1,215
Non-sustaining Project capex 132 - 32 - - - - - - - 164
Non-sustaining exploration and study costs 2 - - 5 - - - - - (1) 6
All-in costs 228 138 290 237 43 73 19 27 330 - 1,385
Adjusted for non-controlling interests and non
-gold producing companies(1) - - - (35) - - - - - - (35)
All-in sustaining costs adjusted for non-
controlling interests and non-gold producing
companies 228 138 290 202 43 73 19 27 330 - 1,350
Adjusted for stockpile write-offs - - - - - - - (2) (9) - (11)
All-in sustaining costs adjusted for non-
controlling interests, non-gold producing
companies and stockpile write-offs 228 138 290 202 43 73 19 25 321 - 1,339
Gold sold - oz (000)(3) 152 144 191 219 30 64 8 34 339 - 1,181
All-in sustaining cost (excluding stockpile
write-offs) per unit - USD/oz(4) 617 954 1,355 898 1,476 1,161 2,242 719 948 - 990
All-in cost per unit (excluding stockpile write-
offs) - USD/oz(4) 1,494 954 1,524 917 1,476 1,161 2,242 719 948 - 1,134
For the nine months ended 30 September 2014
Operations in DRC, Ghana, Guinea, Mali, Namibia and Tanzania
(in USD millions, except as otherwise noted)
DRC GHANA GUINEA MALI NAMIBIA TANZANIA Continental TOTAL CONTINENTAL
Kibali Iduapriem Obuasi Siguiri Morila Sadiola Yatela Navachab Geita Africa other AFRICA
Total cash costs
Total cash costs per financial statements - 114 217 202 - - - 25 224 (2) 780
Adjusted for non-controlling interests, non-
gold producing companies and other(1) - - - (30) - - - - - - (30)
Associates and equity accounted joint
ventures' share of total cash costs(2) 93 - - - 37 67 15 - - 1 213
Total cash costs adjusted for non-controlling
interests and non-gold producing companies 93 114 217 172 37 67 15 25 224 (1) 963
Retrenchment costs - - - - - - - - 1 - 1
Rehabilitation and other non-cash costs - 3 3 3 - - - - 5 - 14
Amortisation of tangible assets - 18 13 23 - - - - 55 1 110
Amortisation of intangible assets - - - - - - - - - 3 3
Adjusted for non-controlling interests, non-
gold producing companies(1) - - - (4) - - - - - - (4)
Associates and equity accounted joint
ventures' share of total cash costs(2) 50 - - - 7 20 3 - - - 80
Total cash costs adjusted for non-controlling
interests and non-gold producing companies 143 135 233 194 44 87 18 25 285 3 1,167
Gold produced - oz (000)(3) 157 137 195 222 30 64 8 33 332 - 1,178
Total cash costs per unit - USD/oz(4) 595 832 1,108 773 1,254 1,057 1,804 752 672 - 817
Total production costs per unit - USD/oz(4) 912 990 1,189 875 1,498 1,371 2,190 756 855 - 990
For the nine months ended 30 September 2014
Operations in Australia, United States of America, Argentina and Brazil
(in USD millions, except as otherwise noted)
Australia TOTAL UNITED ARGENTINA BRAZIL
Sunrise Dam Tropicana Australia AUSTRALIA STATES OF Cerro AngloGold Serra Americas TOTAL
other AMERICA Vanguardia Ashanti Grande other AMERICAS
Cripple Creek Mineracao
& Victor
All-in sustaining costs
Cost of sales per financial statements 264 217 16 497 155 156 264 115 1 691
Amortisation of tangible and intangible assets (33) (71) (4) (108) (2) (23) (77) (34) - (136)
Adjusted for decommissioning amortisation - 2 1 3 - - - - 1 1
Corporate administration and marketing related
to current operations - - - - - - - - 1 1
Sustaining exploration and study costs - 2 5 7 1 1 6 1 10 19
Total sustaining capital expenditure 26 37 - 63 16 35 81 26 - 158
All-in sustaining costs 257 187 18 462 170 169 274 108 13 734
Adjusted for non-controlling interests and non -
gold producing companies(1) - - - - - (13) - - (9) (22)
All-in sustaining costs adjusted for non-
controlling interests, non-gold producing
companies and stockpile write-offs 257 187 18 462 170 156 274 108 4 712
All-in sustaining costs 257 187 18 462 170 169 274 108 13 734
Non-sustaining Project capex - - - - 103 - - - (1) 102
Non-sustaining exploration and study costs - - 6 6 - - 1 - 50 51
Corporate and social responsibility costs not
related to current operations - - - - - - 10 1 1 12
All-in costs 257 187 24 468 273 169 285 109 63 899
Adjusted for non-controlling interests and non -
gold producing companies(1) - - - - - (13) - - - (13)
All-in sustaining costs adjusted for non-
controlling interests, non-gold producing
companies and stockpile write-offs 257 187 24 468 273 156 285 109 63 886
Gold sold - oz (000)(3) 211 259 - 470 155 175 285 98 - 713
All-in sustaining cost (excluding stockpile
write-offs) per unit - USD/oz(4) 1,220 726 - 983 1,106 892 964 1,110 - 997
All-in cost per unit (excluding stockpile write-
offs) - USD/oz(4) 1,220 726 - 995 1,768 893 1,002 1,121 - 1,241
For the nine months ended 30 September 2014
Operations in Australia, United States of America, Argentina and Brazil
(in USD millions, except as otherwise noted)
Australia TOTAL UNITED ARGENTINA BRAZIL
Sunrise Dam Tropicana Australia AUSTRALIA STATES OF Cerro AngloGold Serra Americas TOTAL
other AMERICA Vanguardia Ashanti Grande other AMERICAS
Cripple Creek Mineracao
& Victor
Total cash costs
Total cash costs per financial statements 224 149 11 384 167 130 191 78 - 566
Adjusted for non-controlling interests, non-gold
producing companies and other(1) - - - - (40) (10) - - - (50)
Total cash costs adjusted for non-controlling
interests and non-gold producing companies 224 149 11 384 127 120 191 78 - 516
Retrenchment costs - - 1 1 - 1 2 - - 3
Rehabilitation and other non-cash costs 2 5 (1) 6 13 7 (5) - (1) 14
Amortisation of tangible assets 33 71 3 107 - 23 73 33 - 129
Amortisation of intangible assets - - 1 1 1 - 4 1 - 6
Adjusted for non-controlling interests, non-gold
producing companies(1) - - - - 14 (2) - - (1) 11
Total cash costs adjusted for non-controlling
interests and non-gold producing companies 259 225 14 498 155 148 265 112 (2) 679
Gold produced - oz (000)(3) 201 261 - 462 157 182 282 94 - 716
Total cash costs per unit - USD/oz(4) 1,112 568 - 830 807(6) 661 678 826 - 721
Total production costs per unit - USD/oz(4) 1,288 857 - 1,079 988 815 940 1,181 - 950
For the nine months ended 30 September 2013
Operations in South Africa
(in USD millions, except as otherwise noted)
Great Kopanang Moab Vaal River Mponeng Tau Tona West Wits Surface South Africa Total South Corporate
Noligwa Khotsong Operations Operations operations other Africa
(Operations)
All-in sustaining costs
Cost of sales per financial statements 79 166 184 429 264 212 476 164 2 1,071 5
Amortisation of tangible and intangible assets (6) (33) (48) (87) (63) (38) (101) (3) - (191) (5)
Adjusted for decommissioning amortisation - 1 - 1 - - - - (1) - (1)
Inventory writedown to net realisable value
and other stockpile adjustments - - - - - - - - 1 1 -
Corporate administration and marketing
related to current operations - - - - - - - - 3 3 138
Associates and equity accounted joint
ventures' share of costs(2) - - - - - - - - - - 1
Total sustaining capital expenditure 9 39 63 111 69 43 112 9 - 232 5
All-in sustaining costs 82 173 199 454 270 217 487 170 5 1,116 143
All-in sustaining costs adjusted for non-
controlling interests and non-gold producing
companies 82 173 199 454 270 217 487 170 5 1,116 143
Adjusted for stockpile write-offs - - - - - - - - (1) (1) -
All-in sustaining costs adjusted for non-
controlling interests, non-gold producing
companies and stockpile write-offs 82 173 199 454 270 217 487 170 4 1,115 143
All-in sustaining costs 82 173 199 454 270 217 487 170 5 1,116 143
Non-sustaining Project capex - - 37 37 59 1 60 11 - 108 (1)
Technology improvements - - - - - - - - 8 8 -
Non-sustaining exploration and study costs - - - - - - - - - - 10
Corporate and social responsibility costs not
related to current operations - - - - - - - - - - 17
All-in costs 82 173 236 491 329 218 547 181 13 1,232 169
All-in sustaining costs adjusted for non-
controlling interests and non-gold producing
companies 82 173 236 491 329 218 547 181 13 1,232 169
Adjusted for stockpile write-offs - - - - - - - - (1) (1) -
All-in sustaining costs adjusted for non-
controlling interests, non-gold producing
companies and stockpile write-offs 82 173 236 491 329 218 547 181 12 1,231 169
Gold sold - oz (000)(3) 63 139 144 346 261 173 435 181 - 961 -
All-in sustaining cost (excluding stockpile
write-offs) per unit - USD/oz(4) 1,308 1,243 1,379 1,312 1,034 1,255 1,123 940 - 1,161 -
All-in cost per unit (excluding stockpile writ
offs) - USD/oz(4) 1,308 1,245 1,636 1,420 1,259 1,259 1,259 1,002 - 1,281 -
(1) Adjusting for non-controlling interest of items included in calculation, to disclose the attributable portions only. Other consists of heap
leach inventory.
(2) Attributable costs and related expenses of associates and equity accounted joint ventures are included in the calculation of total cash
costs per ounce and total production costs per ounce.
(3) Attributable portion.
(4) In addition to the operational performances of the mines, all-in sustaining cost per ounce, all-in cost per ounce, total cash costs per
ounce and total production costs per ounce are affected by fluctuations in the currency exchange rate. AngloGold Ashanti reports all-
in sustaining cost per ounce and all-in cost per ounce calculated to the nearest US dollar amount and gold sold in ounces. AngloGold
Ashanti reports total cash costs per ounce and total production costs per ounce calculated to the nearest US dollar amount and gold
produced in ounces.
(5) Corporate includes non-gold producing subsidiaries.
(6) Total cash costs per ounce calculation includes heap-leach inventory change.
For the nine months ended 30 September 2013
Operations in South Africa
(in USD millions, except as otherwise noted)
Great Kopanang Moab Vaal River Mponeng Tau Tona West Wits Surface South Africa Total South Corporate(5)
Noligwa Khotsong Operations Operations operations other Africa
(Operations)
Total cash costs
Total cash costs per financial statements 70 128 129 327 194 167 361 160 (1) 847 1
Adjusted for non-controlling interests, non-
gold producing companies and other(1) - - - - - - - - - - (2)
Associates and equity accounted joint
ventures' share of total cash costs(2) - - - - - - - - - - 1
Total cash costs adjusted for non-
controlling interests and non-gold producing
companies 70 128 129 327 194 167 361 160 (1) 847 -
Retrenchment costs 2 4 5 11 5 6 11 - (1) 21 -
Rehabilitation and other non-cash costs 1 2 4 7 3 3 6 2 - 15 (1)
Amortisation of tangible assets 6 31 46 83 60 36 96 2 (1) 180 5
Amortisation of intangible assets 1 2 2 5 3 2 5 - - 10 2
Adjusted for non-controlling interests, non-
gold producing companies(1) - - - - - - - - - - (1)
Total cash costs adjusted for non-
controlling interests and non-gold producing
companies 80 167 186 433 265 214 479 164 (3) 1,073 5
Gold produced - oz (000)(3) 63 139 144 346 261 173 435 183 - 964 -
Total cash costs per unit - USD/oz(4) 1,122 920 890 944 742 960 829 873 - 879 -
Total production costs per unit - USD/oz(4) 1,269 1,202 1,280 1,247 1,011 1,226 1,098 900 - 1,114 -
For the nine months ended 30 September 2013
Operations in DRC, Ghana, Guinea, Mali, Namibia and Tanzania
(in USD millions, except as otherwise noted)
DRC GHANA GUINEA MALI NAMIBIA TANZANIA Continental TOTAL CONTINENTAL
Kibali Iduapriem Obuasi Siguiri Morila Sadiola Yatela Navachab Geita Africa other AFRICA
All-in sustaining costs
Cost of sales per financial statements - 153 331 248 - - - 41 249 18 1,040
Amortisation of tangible and intangible assets - (22) (48) (20) - - - (6) (87) (5) (188)
Adjusted for decommissioning amortisation - 1 1 2 - - - - 1 - 5
Inventory writedown to net realisable value
and other stockpile adjustments - 83 4 - - - - 24 66 - 177
Corporate administration and marketing
related to current operations - - - - - - - - - 5 5
Associates and equity accounted joint
ventures' share of costs (2) 2 - - - 35 77 28 - - (1) 141
Sustaining exploration and study costs - 1 5 13 - 1 - 1 10 1 32
Total sustaining capital expenditure - 16 117 17 7 11 - 4 96 3 271
All-in sustaining costs 2 232 410 260 42 89 28 64 335 21 1,483
Adjusted for non-controlling interests and non
-gold producing companies(1) - - - (39) - - - - - (2) (41)
All-in sustaining costs adjusted for non-
controlling interests and non-gold producing
companies 2 232 410 221 42 89 28 64 335 19 1,442
Adjusted for stockpile write-offs - (83) (4) - - - - (24) (66) - (177)
All-in sustaining costs adjusted for non-
controlling interests, non-gold producing
companies and stockpile write-offs 2 149 406 221 42 89 28 40 269 19 1,265
All-in sustaining costs 2 232 410 260 42 89 28 64 335 21 1,483
Non-sustaining Project capex 275 4 24 3 - 10 2 - 9 30 357
Non-sustaining exploration and study costs 1 - - 7 - - - - - 27 35
All-in costs 278 236 434 270 42 99 30 64 344 78 1,875
Adjusted for non-controlling interests and non
-gold producing companies(1) - - - (41) - - - - - (9) (50)
All-in sustaining costs adjusted for non-
controlling interests and non-gold producing
companies 278 236 434 229 42 99 30 64 344 69 1,825
Adjusted for stockpile write-offs - (83) (4) - - - - (24) (66) - (177)
All-in sustaining costs adjusted for non-
controlling interests, non-gold producing
companies and stockpile write-offs 278 153 430 229 42 99 30 40 278 69 1,648
Gold sold - oz (000)(3) - 153 180 209 45 62 20 46 313 - 1,025
All-in sustaining cost (excluding stockpile
write-offs) per unit - USD/oz(4) - 973 2,264 1,075 946 1,460 1,434 875 856 - 1,233
All-in cost per unit (excluding stockpile write-
offs) - USD/oz(4) - 1,001 2,402 1,115 946 1,618 1,530 875 884 - 1,607
For the nine months ended 30 September 2013
Operations in DRC, Ghana, Guinea, Mali, Namibia and Tanzania
(in USD millions, except as otherwise noted)
DRC GHANA GUINEA MALI NAMIBIA TANZANIA Continental TOTAL CONTINENTAL
Kibali Iduapriem Obuasi Siguiri Morila Sadiola Yatela Navachab Geita Africa other AFRICA
Total cash costs
Total cash costs per financial statements - 125 250 215 - - - 35 153 (2) 776
Adjusted for non-controlling interests, non-
gold producing companies and other(1) - - - (32) - - - - - - (32)
Associates and equity accounted joint
ventures' share of total cash costs(2) - - - - 34 79 27 - - - 140
Total cash costs adjusted for non-controlling
interests and non-gold producing companies - 125 250 183 34 79 27 35 153 (2) 884
Retrenchment costs - - 29 - - - - - - - 29
Rehabilitation and other non-cash costs - - (1) 1 - - - - 1 6 7
Amortisation of tangible assets - 22 48 20 - - - 6 87 3 186
Amortisation of intangible assets - - - - - - - - - 2 2
Adjusted for non-controlling interests, non-
gold producing companies(1) - - - (3) - - - - - - (3)
Associates and equity accounted joint
ventures' share of total cash costs(2) - - - - 2 1 2 - - - 5
Total cash costs adjusted for non-controlling
interests and non-gold producing companies - 147 326 201 36 80 29 41 241 9 1,110
Gold produced - oz (000)(3) - 153 176 193 45 62 20 46 306 - 1,000
Total cash costs per unit - USD/oz(4) - 815 1,425 947 751 1,268 1,378 755 502 - 883
Total production costs per unit - USD/oz(4)
- 963 1,854 1,037 800 1,281 1,487 880 740 - 1,109
For the nine months ended 30 September 2013
Operations in Australia, United States of America, Argentina and Brazil
(in USD millions, except as otherwise noted)
Australia TOTAL UNITED ARGENTINA BRAZIL
Sunrise Dam Tropicana Australia AUSTRALIA STATES OF Cerro AngloGold Serra Americas TOTAL
other AMERICA Vanguardia Ashanti Grande other AMERICAS
Cripple Creek Mineracao
& Victor
All-in sustaining costs
Cost of sales per financial statements 270 - 18 288 161 154 282 102 1 700
Amortisation of tangible and intangible assets (40) - (2) (42) (21) (28) (81) (30) (1) (161)
Adjusted for decommissioning amortisation - - - - - - (1) - 1 -
Corporate administration and marketing related
to current operations - - 1 1 11 - 5 - - 16
Sustaining exploration and study costs 12 2 7 21 4 6 10 6 - 26
Total sustaining capital expenditure 33 25 4 62 8 50 81 26 11 176
All-in sustaining costs 275 27 28 330 163 182 296 104 12 757
Adjusted for non-controlling interests and non -
gold producing companies(1) - - - - - (14) - - - (14)
All-in sustaining costs adjusted for non-
controlling interests, non-gold producing
companies and stockpile write-offs 275 27 28 330 163 168 296 104 12 743
All-in sustaining costs 275 27 28 330 163 182 296 104 12 757
Non-sustaining Project capex - 188 - 188 100 8 4 3 3 118
Non-sustaining exploration and study costs - - 7 7 - - 5 - 90 95
Corporate and social responsibility costs not
related to current operations - - - - - - 6 (4) 1 3
All-in costs 275 215 35 525 263 190 311 103 106 973
Adjusted for non-controlling interests and non -
gold producing companies(1) - - - - - (14) - - - (14)
All-in sustaining costs adjusted for non-
controlling interests, non-gold producing
companies and stockpile write-offs 275 215 35 525 263 176 311 103 106 959
Gold sold - oz (000)(3) 171 - - 171 183 182 273 107 - 745
All-in sustaining cost (excluding stockpile
write-offs) per unit - USD/oz(4) 1,605 - - 1,922 888 930 1,083 975 - 999
All-in cost per unit (excluding stockpile wri
offs) - USD/oz (4) 1,605 - - 3,063 1,433 971 1,140 966 - 1,287
For the nine months ended 30 September 2013
Operations in Australia, United States of America, Argentina and Brazil
(in USD millions, except as otherwise noted)
Australia TOTAL UNITED ARGENTINA BRAZIL
Sunrise Dam Tropicana Australia AUSTRALIA STATES OF Cerro AngloGold Serra Americas TOTAL
other AMERICA Vanguardia Ashanti Grande other AMERICAS
Cripple Creek Mineracao
& Victor
Total cash costs
Total cash costs per financial statements 236 - 14 250 178 118 191 75 - 562
Adjusted for non-controlling interests, non-gold
producing companies and other(1) - - - - (48) (9) - - 1 (56)
Total cash costs adjusted for non-controlling
interests and non-gold producing companies 236 - 14 250 130 109 191 75 1 506
Retrenchment costs - - 1 1 - 1 1 - - 2
Rehabilitation and other non-cash costs (3) - - (3) 4 2 5 (1) 1 11
Amortisation of tangible assets 40 - 2 42 21 28 80 30 - 159
Amortisation of intangible assets - - - - - - 1 - - 1
Adjusted for non-controlling interests, non-gold
producing companies(1) - - - - 4 (2) - - (1) 1
Total cash costs adjusted for non-controlling
interests and non-gold producing companies 273 - 17 290 59 138 278 104 1 680
Gold produced - oz (000)(3) 173 - - 173 184 180 271 104 - 739
Total cash costs per unit - USD/oz(4) 1,360 - - 1,444 708(6) 605 704 722 - 684
Total production costs per unit - USD/oz(4) 1,575 - - 1,673 868 761 1,025 1,011 - 921
Administrative information
ANGLOGOLD ASHANTI LIMITED
Registration No. 1944/017354/06
Incorporated in the Republic of South Africa
Share codes:
ISIN: ZAE000043485
JSE: ANG
NYSE: AU
ASX: AGG
GhSE: (Shares) AGA
GhSE: (GhDS) AAD
The company's securities were delisted from
the London Stock Exhange from 22 September 2014.
The UK register will remain open for a year from
the date of delisting.
JSE Sponsor:
Deutsche Securities (SA) Proprietary Ltd
Auditors: Ernst & Young Inc.
Offices
Registered and Corporate
76 Jeppe Street
Newtown 2001
(PO Box 62117, Marshalltown 2107)
South Africa
Telephone: +27 11 637 6000
Fax: +27 11 637 6624
Australia
Level 13, St Martins Tower
44 St George's Terrace
Perth, WA 6000
(PO Box Z5046, Perth WA 6831)
Australia
Telephone: +61 8 9425 4602
Fax: +61 8 9425 4662
Ghana
Gold House
Patrice Lumumba Road
(PO Box 2665)
Accra
Ghana
Telephone: +233 303 772190
Fax: +233 303 778155
United Kingdom Secretaries
St James's Corporate Services Limited
Suite 31, Second Floor
107 Cheapside
London
EC2V 6DN
Telephone: +44 20 7796 8644
Fax: +44 20 7796 8645
E-mail: jane.kirton@corpserv.co.uk
Directors
Executive
KC Ramon^ (Chief Financial Officer)
S Venkatakrishnan*§ (Chief Executive Officer)
Non-Executive
SM Pityana^ (Chairman)
R Gasant^
DL Hogdson^
NP January-Bardill^
MJ Kirkwood*
Prof LW Nkuhlu^
R J Ruston~
* British ^South African
~ Australian § Indian
Officers
Group General Counsel and
Company Secretary: Ms M E Sanz Perez
Investor Relations Contacts
South Africa
Stewart Bailey
Telephone: +27 11 637 6031
Mobile: +27 81 032 2563
E-mail: sbailey@AngloGoldAshanti.com
Fundisa Mgidi
Telephone: +27 11 637 6763
Mobile: +27 82 821 5322
E-mail: fmgidi@AngloGoldAshanti.com
United States
Sabrina Brockman
Telephone: +1 212 858 7702
Mobile: +1 646 379 2555
E-mail: sbrockman@AngloGoldAshantiNA.com
General E-mail enquiries
investors@AngloGoldAshanti.com
AngloGold Ashanti website
http://www.AngloGoldAshanti.com
Company secretarial E-mail
Companysecretary@AngloGoldAshanti.com
AngloGold Ashanti posts information that is
important to investors on the main page of its
website at www.anglogoldashanti.com and under
the "Investors" tab on the main page. This
information is updated regularly. Investors should
visit this website to obtain important information
about AngloGold Ashanti.
PUBLISHED BY ANGLOGOLD ASHANTI
Share Registrars
South Africa
Computershare Investor Services (Pty) Limited
Ground Floor, 70 Marshall Street
Johannesburg 2001
(PO Box 61051, Marshalltown 2107)
South Africa
Telephone: (SA only) 0861 100 950
Fax: +27 11 688 5218
Website : queries@computershare.co.za
United Kingdom
Shares
Jersey
Computershare Investor Services (Jersey) Ltd
Queensway House
Hilgrove Street
St Helier
Jersey JE1 1ES
Telephone: +44 870 889 3177
Fax: +44 (0) 870 873 5851
Australia
Computershare Investor Services Pty Limited
Level 2, 45 St George's Terrace
Perth, WA 6000
(GPO Box D182 Perth, WA 6840)
Australia
Telephone: +61 8 9323 2000
Telephone: (Australia only) 1300 55 2949
Fax: +61 8 9323 2033
Ghana
NTHC Limited
Martco House
Off Kwame Nkrumah Avenue
PO Box K1A 9563 Airport
Accra
Ghana
Telephone: +233 302 229664
Fax: +233 302 229975
ADR Depositary
BNY Mellon
BNY Shareowner Services
PO Box 358016
Pittsburgh, PA 15252-8016
United States of America
Telephone: +1 800 522 6645 (Toll free in USA)
or +1 201 680 6578 (outside USA)
E-mail: shrrelations@mellon.com
Website: www.bnymellon.com.com\shareowner
Global BuyDIRECTSM
BoNY maintains a direct share purchase and
dividend reinvestment plan for ANGLOGOLD
ASHANTI.
Telephone: +1-888-BNY-ADRS
Date: 03/11/2014 07:05:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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