Wrap Text
Report for the quarter and year ended 31 December 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 year ended 31 December 2014
Year
- Production of 4.436Moz - up 8% year-on-year
- Total cash costs of $787/oz - 5% lower year-on-year
- All-in-sustaining cost of $1,026/oz - 13% lower year-on-year
- Capital expenditure of $1.2bn - 39% below 2013
- Corporate costs $92m - 54% lower year-on-year
- Exploration and evaluation costs $144m - 44% lower year-on-year
- Adjusted EBITDA stable at $1,665m despite a 10% drop in gold price
- Self-help measures progressed to deleverage in medium term
- Free cash outflow shows strong improvement to $112m from $1,058m
Quarter
- Strong production of 1.156Moz - ahead of guidance and up 2%
- Total cash costs of $724/oz - 12% lower quarter-on-quarter
- All-in-costs improve 7% year-on-year to $1,143/oz; All-in sustaining costs $1,017/oz
- Adjusted EBITDA improves to $407m
- Obuasi enters limited operations after workforce retrenchment; Feasibility study well advanced
Quarter Year
ended ended ended ended ended
Dec Sep Dec Dec Dec
2014 2014 2013 2014 2013
US dollar/Imperial
Operating review
Gold
Produced - oz (000) 1,156 1,128 1,229 4,436 4,105
Sold - oz (000) 1,172 1,101 1,191 4,458 4,093
Price received(1) - $/oz 1,202 1,281 1,271 1,264 1,401
All-in sustaining costs(2) - $/oz 1,017 1,036 1,015 1,026 1,174
All-in costs(2) - $/oz 1,143 1,144 1,233 1,148 1,466
Total cash costs(3) - $/oz 724 820 748 787 830
Financial review
Gold income - $m 1,278 1,295 1,418 5,218 5,497
Cost of sales - $m (1,061) (1,052) (1,042) (4,190) (4,146)
Total cash costs(3) - $m 777 864 861 3,292 3,297
Production costs(4) - $m 833 877 866 3,410 3,384
Adjusted gross profit(5) - $m 217 243 376 1,028 1,351
Gross profit - $m 222 273 404 1,043 1,445
(Loss) profit attributable to equity shareholders - $m (58) 41 (305) (58) (2,230)
- cents/share (14) 10 (75) (14) (568)
Headline (loss) earnings - $m (71) 44 (276) (79) 78
- cents/share (17) 11 (68) (19) 20
Adjusted headline (loss) earnings(6) - $m (117) 2 45 (1) 599
- cents/share (29) 0 11 0 153
Net cash flow from operating activities - $m 213 320 431 1,220 1,246
Capital expenditure - $m 363 261 477 1,209 1,993
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 notes for the quarter and year ended $ represents US dollar, unless otherwise stated.
31 December 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,
dispositions or joint venture transactions, 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 31 December 2014
Production All-in sustaining costs (1) Total cash costs(2) Adjusted
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) $/oz % Variance(4) % Variance(5) $/oz % Variance(4) % Variance(5) $m $m Variance(4) $m Variance(5)
SOUTH AFRICA 300 (12) (4) 1,097 9 (2) 830 8 (8) 39 (67) (8)
Vaal River Operations 124 (2) 16 1,031 (5) (11) 773 1 (18) 22 (11) 12
Great Noligwa 22 10 29 1,027 (21) (24) 894 (13) (30) 4 2 6
Kopanang 33 (15) (13) 1,324 2 9 1,014 11 2 (6) (7) (5)
Moab Khotsong 68 1 31 888 - (15) 615 3 (22) 24 (6) 11
West Wits Operations 119 (23) (22) 1,129 23 12 864 21 5 7 (58) (28)
Mponeng 56 (40) (39) 1,275 32 42 946 44 38 (4) (40) (39)
TauTona 63 2 3 1,000 17 (15) 792 (2) (23) 11 (18) 11
Total Surface Operations 56 (3) 8 1,116 7 (11) 883 (3) (16) 10 1 8
First Uranium SA 24 (11) 4 1,310 26 - 899 7 (6) 1 (2) 3
Surface Operations 32 7 10 965 (7) (21) 871 (11) (22) 9 3 5
Other 1 100 (50) - - - - - - - - -
INTERNATIONAL OPERATIONS 856 (4) 5 968 (2) (1) 692 (7) (12) 214 (57) (1)
CONTINENTAL AFRICA 419 (9) 2 907 (20) (2) 687 (18) (14) 121 4 5
DRC
Kibali - Attr. 45%(6) 80 100 23 532 13 (8) 546 16 (3) 35 13 8
Ghana
Iduapriem 40 (40) (11) 1,248 8 27 976 1 13 2 (5) (8)
Obuasi 48 (24) (38) 1,440 (30) 23 999 (26) 3 (4) 11 (19)
Guinea
Siguiri - Attr. 85% 68 (9) (6) 973 (13) 22 884 5 19 18 1 (10)
Mali
Morila - Attr. 40%(6) 15 25 50 937 (35) (44) 973 14 (36) 2 (1) 8
Sadiola - Attr. 41%(6) 21 (13) - 1,049 (36) (1) 942 (37) (4) - 10 -
Yatela - Attr. 40%(6) 3 (63) 50 414 (81) (78) 220 (89) (87) 2 10 3
Namibia
Navachab - (100) - - (100) - - (100) - - (14) -
Tanzania
Geita 144 (6) 24 751 (4) (17) 429 (21) (40) 64 (25) 25
Non-controlling interests,
1 3 (4)
exploration and other
AUSTRALASIA 157 (7) 3 995 30 2 729 14 (15) 19 (11) (5)
Australia
Sunrise Dam 61 (40) (10) 1,193 48 7 1,083 58 10 (8) (31) (14)
Tropicana - Attr. 70% 96 45 14 824 29 3 482 (15) (33) 31 22 8
Exploration and other (4) (2) 1
AMERICAS 280 7 12 1,042 17 1 677 7 (7) 73 (52) (3)
Argentina
Cerro Vanguardia - Attr. 92.50% 64 5 3 1,051 23 10 780 16 19 20 (2) -
Brazil
AngloGold Ashanti Mineração 121 1 20 970 9 (6) 565 9 (19) 45 (24) 11
Serra Grande 42 24 31 947 (1) (14) 570 (20) (29) 7 (5) 4
United States of America
Cripple Creek & Victor 54 15 (4) 1,261 17 17 895 8 8 4 (18) (14)
Non-controlling interests,
(2) (2) (3)
exploration and other
OTHER 5 - 5
Sub-total 1,156 (6) 2 1,017 - (2) 724 (3) (12) 257 (125) (5)
Equity accounted investments included above (40) (34) (21)
AngloGold Ashanti 217 (159) (26)
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 December 2014 quarter on December 2013 quarter - increase (decrease).
5 Variance December 2014 quarter on September 2014 quarter - increase (decrease).
6 Equity accounted joint ventures.
Rounding of figures may result in computational discrepancies.
Financial and Operating Report
FINANCIAL AND CORPORATE REVIEW
FULL YEAR OVERVIEW
AngloGold Ashanti's operating and financial performance for 2014 reflect output growth, continued focused cost management and
ongoing capital discipline, while posting another strong safety performance. Cash inflow from operating activities of $1,220m for the
year ended 31 December 2014 was marginally down on $1,246m achieved in 2013, despite the 10% lower gold price received, the cost
of Obuasi redundancies, and the Rand Refinery loan of $44m, all of which was partly offset by the 8% higher production. Cash inflow
from operating activities before the Obuasi redundancy costs and the Rand Refinery loan amounted to $1,474m, reflecting an increase
of 18% on 2013 levels. Free cash outflow of $112m, which included the once-off redundancy costs at Obuasi, was an improvement on
the outflow of $1,058m for the year ended 31 December 2013, mainly as a result of lower capital expenditure.
Production saw an 8% increase over 2013 levels to 4.436Moz, while all-in sustaining costs were 13% lower compared to $1,026/oz in
2013. This compared with guidance for full year production of 4.2Moz to 4.5Moz at an all-in-sustaining cost of $1,026/oz to $1,075/oz.
The year-on-year improvement in production reflects the first full year of production from the Kibali mine in the Democratic Republic of
Congo and Tropicana in Western Australia, as well as strong performances from the Continental Africa portfolio as a whole, where
Geita and Siguiri were again standout operations. The production growth was achieved despite the loss of 56,000oz due to an
earthquake in South Africa in August, the sale of Navachab and the removal of high cost ounces from production.
The company's cost performance reflected improvements in several key areas including direct operating costs, corporate overheads,
exploration expenses and capital expenditure. The Project 500 initiative, launched in mid-2013 to save $500m in direct operating costs
over 18 months, achieved its target during the year, while costs were further aided by weaker currencies in South Africa, Australia and
Brazil. Capital expenditure of $1,209m, which came in below guidance for the year of $1,350m to $1,450m, showed a significant decline
from the prior year of $1,993m. This improvement was partially due to the completion of two major capital projects in 2013. Total cash
costs of $787/oz improved 5% compared to $830/oz recorded in 2013 and within guidance of $740/oz to $790/oz. Corporate and
marketing costs of $92m were 54% lower year-on-year and below initial guidance of $120m to $140m, while exploration and evaluation
costs of $144m were 44% lower year-on-year and below guidance of $150m-$175m.
The full year ended with an adjusted headline loss of $1m, or 0 US cents per share, compared with adjusted headline earnings (AHE) of
$599m or 153 US cents per share in 2013. Earnings were affected by the 10% decline in the average gold price received in 2014, while
the prior year had the benefit of a non-recurring realised gain of $567m on maturity of the mandatory convertible bonds. The net loss
attributable to shareholders for the year was $58m compared to a loss of $2.2bn in 2013, when net earnings were affected by asset
impairments.
Adjusted earnings before interest, tax, depreciation and amortisation (adjusted EBITDA) was $1,665m, similar to 2013 levels of
$1,667m despite a 10% lower average price received. Net debt: adjusted EBITDA levels ended the year at 1.88 times, similar to the end
of 2013 at 1.86 times, again despite the lower gold price received and payments of $210m during the year to retrench the workforce at
Obuasi in preparation for the mine's transition to limited operations phase, and the extension of a $44m shareholder loan to the Rand
Refinery. AngloGold Ashanti drew $100m from its US dollar revolving credit facility to meet its obligations at Obuasi, leaving $900m
undrawn, along with $153m (A$185m) undrawn on the Australian dollar RCF, approximately $91m (R1,058m) available from its South
African facilities and cash on hand of $519m. Net debt at year end was $3,133m, compared to $3,105m at the end of 2013.
Most notably, the company achieved a run of 224 days without a workplace fatality, outstripping the previous period of 118 days
showing a strong commitment and effort by employees of the business and a culture favouring workplace safety. Year-on-year, the
company delivered a 25% reduction in fatal accidents and saw 20% fewer injuries. In addition, reportable environmental incidents were
the lowest recorded in the company's history. Considerable efforts have been made to maintain and improve relationships with host
communities and governments.
AngloGold Ashanti continues to focus its attention on key business objectives supporting its ongoing effort to improve sustainable free
cash flow and returns. Improving overall financial flexibility is a key component of this approach. During 2014, AngloGold Ashanti
successfully extended the maturity profiles of its international facilities by two years to 2019 and had banking covenants relaxed to 3.5
times Net debt to adjusted EBITDA, with a one-time conditional waiver to 4.5 times. During the year, AngloGold Ashanti announced self-
help measures that would be prioritised to enable it to meet its targeted deleveraging by roughly $1bn over the next three years, notably
through: continued cost management; optimisation of life-of-mine plans to extract additional cash flow; the potential introduction of
partners in the Colombia portfolio and at Obuasi; and the potential joint venture or sale of an operating asset.
FOURTH QUARTER REVIEW
Operational performance for the fourth quarter exceeded market guidance despite safety-related interruptions which decreased
production from South Africa. Cash inflow from operating activities of $213m for the three months ended 31 December 2014 was down
compared to the $431m achieved in the same quarter in 2013, mainly due to by the 5% lower gold price received, 6% lower production
and the cost of the Obuasi restructuring. Free cash outflow of $198m has increased on the $108m of the same quarter in 2013,
highlighting the once-off redundancy payments at Obuasi, the drawdown of the Rand Refinery loan and also the impact of the lower
cash from operations. These outflows were only partly offset by lower capital expenditure during the three months period.
Group production in the three months ending December 31 was 1.156Moz, 2.5% better than the previous quarter but 6% lower year-on-
year. The performance was ahead of market guidance of 1.1Moz to 1.14Moz. Total cash costs of $724/oz were 12% below the previous
quarter, which averaged $820/oz and improved 3% year-on-year.
The average gold price received during the fourth quarter was $1,202/oz, lower than the previous quarter average gold price received of
$1,281/oz and $1,271/oz in the fourth quarter of 2013. Despite the lower gold price, adjusted EBITDA for the quarter was slightly higher
at $407m than the previous quarter's $400m. Adjusted EBITDA in the final quarter of 2013 was $544m.
Net debt to adjusted EBITDA was negatively affected given the increase in net debt due to higher capital expenditure in the final
quarter, retrenchment costs associated with ongoing restructuring at the Obuasi mine in Ghana of $145m, and a drawdown of $44m by
the Rand Refinery on its shareholder loan.
The adjusted headline loss for the fourth quarter of $117m was impacted by a number of non-cash accounting adjustments including
$7m associated with stockpile and inventory provisions, and $147m associated with operational and corporate redundancies relating to
the Obuasi restructuring, environmental liability resets of $20m and closure costs of $13m. The net loss attributable to shareholders for
the fourth quarter was $58m compared with a loss of $305m a year earlier.
SUMMARY COMPARISON OF KEY PERFORMANCE MEASURES TO DATE WITH SAME PERIODS LAST YEAR
Improved
Improved Q vs prior Improved
Particulars Q4 2014 Q3 2014 Q v Q Q4 2014 Q4 2013 year Q 2014 2013 Y-on-Y
Gold price received ($/oz) 1,202 1,281 (6%) 1,202 1,271 (5%) 1,264 1,401 (10%)
Gold production (Kozs) 1,156 1,128 2% 1,156 1,229 (6%) 4,436 4,105 8%
Total cash costs ($/oz) 724 820 (12%) 724 748 (3%) 787 830 (5%)
Corporate & marketing costs
(US$m) 23 24 (4%) 23 37 (38%) 92 201 (54%)
Exploration & evaluation costs
(US$m) 45 37 22% 45 41 10% 144 255 (44%)
Capital expenditure (US$m) 363 261 39% 363 477 (24%) 1,209 1,993 (39%)
All-in sustaining costs (US$/oz) 1,017 1,036 (2%) 1,017 1,015 0% 1,026 1,174 (13%)
All-in costs (US$/oz)* 1,143 1,144 0% 1,143 1,233 (7%) 1,148 1,466 (22%)
Cash inflow from operating
activities ($m) 213 320 (33%) 213 431 (51%) 1,220 1,246 (2%)
Adjusted EBITDA ($m) 407 400 2% 407 544 (25%) 1,665 1,667 0%
Free cash flow ($m) (198) 30 (760%) (198) (108) (83%) (112) (1,058) 89%
Free cash flow ($m) excl
Obuasi redundancies and Rand (9) 64 (114%) (9) (108) 92% 142 (1,058) 113%
Refinery loan
* World Gold Council Standard, excludes stockpiles written off.
CORPORATE UPDATE
AngloGold Ashanti has embarked on a series of self-help measures to generate cash from internal sources to reduce its net debt levels.
Among these measures is the search for partners or buyers for certain assets in the company's portfolio. There can be no assurances
that these processes will be successfully concluded. In this regard, the joint venture or sale of an operating asset remains an option that
is being considered.
Work is also under way to explore partnerships for projects in Colombia in order to share risk and ongoing expenditures to develop
those projects.
Obuasi mine restructuring: Significant work took place during the fourth quarter to transition Obuasi to a limited operating state.
During the fourth quarter, the Amendment to Program of Mining Operations, which provides technical, environmental, financial and
social details around the transition, was approved by the Government of Ghana, allowing the completion of the retrenchment program at
the operation and a substantial reduction in the mine's operations. A detailed feasibility study exploring the economic and technical
prospects of the operation, while addressing security, environmental obligations and community relationships, has made significant
progress and will be continued and optimised during 2015. Talks with the relevant regulators are expected to take place to help foster
clarity as to the fiscal and operating parameters for the project. As the outcome of these talks will have an impact on the feasibility
study, the final results are only expected to be made public once this process is complete. The total expenditures expected to be
incurred at Obuasi in 2015 aggregating $100m relates continued development of the decline access ramp to underground mining areas,
costs for the completion of the feasibility study and costs for maintaining limited operating state. In addition, AngloGold Ashanti may
pursue potential partnerships in the project at the appropriate time, as initially indicated in November 2014.
SAFETY
AngloGold Ashanti continued a promising safety trend, with the All injury frequency rate (AIFR), the broadest measure of safety
performance, ending the year at 7.36 compared with 7.34 the previous year, this despite recording several minor injuries related to the
earthquake in August at its Vaal River Operations. Without the impact of the earthquake the AIFR would have been 7.15.
Regrettably, there were six fatalities during the year ended 2014, four in South Africa and two in Brazil. Three of these fatalities occurred
in South Africa in the fourth quarter - two at Mponeng and one at Kopanang -- and were caused by fall-of-ground incidents. Formal
incident investigations were initiated and completed immediately after each occurrence to identify factors that contributed to the
incidents. Corrective and preventative actions are being implemented where possible. Although 2014 saw the fewest fatalities of any
year on record, management continued to take steps to prevent the re-occurrence of these incidents and achieve the organisation's
goal of zero-harm across all operations.
AngloGold Ashanti implemented electronic systems during the year that monitor various aspects of underground working areas,
allowing remote gathering of information from a large portion of these mines to assist in improving safety systems. In addition, ongoing
training, improvement of processes, management and behavioural improvements have helped more than halve the number of safety
incidents since 2007. Focus remains on identifying major hazards, and understanding 'high potential incidents,' which may have
resulted in death or serious injury. Work also continues to foster improvement to the organisation culture, procedures and support.
OPERATING HIGHLIGHTS
The South African operations produced 1.223Moz at a total cash cost of $849/oz for the year ended December 2014 compared to
1.302Moz at a total cash cost of $850/oz for the year ended December 2013. The lower production was due to the earthquake near the
Vaal River operations on 5 August 2014, which caused infrastructure damage that impacted operations at Moab Khotsong, Kopanang
and Great Noligwa mines, as well as safety related stoppages across the regional portfolio. Costs controls improved significantly from
the 2013 levels and managed to offset inflationary pressures. All-in sustaining costs averaged $1,064/oz for the year ended December
2014, a 5% improvement on the $1,120/oz achieved for the year ended December 2013. During the fourth quarter the region produced
300,000oz at a total cash cost of $830/oz, compared to 339,000oz at a total cash cost of $767/oz during the same quarter in 2013.
Safety-related disruptions during the quarter hindered production as the region encountered two fall-of-ground fatalities at Mponeng and
another at Kopanang. All-in sustaining costs for the fourth quarter were $1,097/oz, compared to $1,005/oz in the same quarter a year
ago.
At West Wits, production was 544,000oz at a total cash cost of $804/oz for the year ended December 2014 compared to 589,000oz at a
total cash cost of $800/oz for the year ended December 2013. The fourth quarter production was 119,000oz at a total cash cost of
$864/oz compared to 154,000oz at a total cash cost of $717/oz in the same quarter a year ago. The fourth quarter's performance was
adversely impacted by safety-related stoppages and shaft repairs at Mponeng following an incident caused during shaft slinging
operations which caused damage to the sub-shaft resulting in a week-long stoppage to complete remediation work. TauTona's total
cash costs improved from $809/oz to $792/oz, due to cost savings initiatives which included effective overtime management, labour
cost reduction and power optimisation made possible by the integration of TauTona and Savuka .
At the Vaal River district, production was 453,000oz at a total cash cost of $857/oz for the year ended December 2014 compared to
473,000oz at a total cash cost of $895/oz for the year ended December 2013. Production from the Vaal River operations decreased
marginally in the fourth quarter of 2014 to 124,000oz at a total cash cost of $773/oz, compared to 127,000oz at a total cash cost of
$762/oz in the same quarter a year ago. Kopanang was affected by fall-of-ground fatality which had an adverse impact on production as
the mine was halted for 11 shifts to comply with instructions from the regulator. Both Great Noligwa and Moab Khotsong performed on
levels consistent with the same quarter last year. Moab Khotsong was the lowest cost producer for the South African region during the
quarter at a total cash cost of $615/oz after recovering from the previous quarter which was affected by the earthquake.
Production from total Surface Operations for the year ended December 2014 was 223,000oz at a total cash costs of $941/oz, compared
to 240,000oz at a total cash cost of $883/oz for the year ended December 2013. The most significant challenge has been a reduction
in grade. In an attempt to mitigate this, milling throughput has been improved 10%. Surface Operations' production for the fourth quarter of
2014 was 56,000oz at a total cash cost of $883/oz, compared to 58,000oz at a total cash cost of $915/oz in the same quarter a year
ago. Grade-control drilling program progressed well and is expected to continue in 2015 to improve knowledge of the available material.
Construction of the new pump station is progressing to schedule and this will allow for an improvement in throughput from May 2015..
The uranium plant at Mine Waste Solutions was fully commissioned during the fourth quarter, with 4 tons of Uranium oxide produced
during the period. Process optimisation to improve float tonnage and grade will facilitate improved plant efficiencies. The South Africa
region is progressing well with the implementation of the district consolidation model in the Vaal River. The Vaal River region has
commenced operating under this new structure, with the integration of Moab Khotsong and Great Noligwa largely complete. The Vaal
River district will see the incorporation of Kopanang which brings the three previously separately managed mines under a single
management team. This team will also manage the geographic footprint in the Vaal River in order to reduce the costs associated with
the maintenance of the complex. Regional and Corporate duplications are being eliminated in the process. Cost reductions are being
planned and managed within the successful P500 system. Full benefits will be felt in the second half of 2015.
Lower operating costs were realised in South Africa on labour cost management, reef-mining related activities, power consumption,
contractor management, the implementation of service optimisation strategies and a robust critical review of commodity as well as
services related contracts. The methodologies and principles of Project 500 helped improved overall efficiency and regulatory
compliance within AngloGold Ashanti's existing operating framework.
The Continental Africa region produced 1.597Moz at a total cash cost of $783/oz for the year ended December 2014 compared to
1.460Moz at a total cash cost of $869/oz for the year ended December 2013. The increased production is mainly attributed to Kibali's
full year of production in 2014 together with good performances particularly from Siguiri and Geita. The strong results were achieved
despite Navachab's sale at the end of June 2014 and the continued winding down of operations in Mali. All-in sustaining costs at
$968/oz for the year ended December 2014 represent a 19% improvement on the $1,202/oz achieved for the year ended December
2013. This improvement in costs was driven by efficiency gains and by stronger performances from key assets in the region. During the
fourth quarter of 2014, the region showed improved costs, with production of 419,000oz at a total cash cost of $687/oz compared to
460,000oz at a total cash cost of $839/oz during the same quarter a year ago.
In Ghana, Iduapriem's production was 177,000oz at a total cash cost of $865/oz for the year ended December 2014 compared to
221,000oz at a total cash cost of $861/oz for the year ended December 2013. The decline in production was a result of a 21% decrease
in recovered grade in line with plans to mine less volume and process the ore tonnes accumulated on stockpiles. Total cash costs
however were maintained at $865/oz mainly as a result of productivity improvements. During the fourth quarter of 2014, Iduapriem's
production decreased to 40,000oz at a total cash cost of $976/oz compared to 67,000oz at a total cash cost of $966/oz during the same
quarter of 2013. The decline in production and modest increase in costs for the quarter were a result of a 38% decrease in recovered
grade due to the planned treatment of lower grade stockpiles and a 4% decrease in tonnage throughput.
Obuasi's production was 243,000oz at a total cash cost of $1,086/oz for the year ended December 2014 compared to 239,000oz at a
total cash cost of $1,406/oz for the year ended December 2013. The improvement in production is attributable to an increase in surface
tonnes processed partly offset by the initiation of the Amended Programme of Mining Operations (APMO) approved by the government
of Ghana in November 2014, which saw the mine transition to limited operation phase by the end of the year. Due to the limited
operational activity, costs declined, resulting in all-in sustaining costs of $1,374/oz, down 38% compared to the same period a year ago.
During the fourth quarter of 2014, production was 48,000oz at a total cash cost of $999/oz compared to 63,000oz at a total cash cost of
$1,354/oz during the same quarter a year ago.
In The Republic of Guinea, Siguiri's production was 290,000oz at a total cash cost of $799/oz for the year ended December 2014
compared to 268,000oz at a total cash cost of $918/oz for the year ended December 2013. Production increased as a result of higher
grade ore sources being accessed. Total cash costs were further aided by efficiency improvements, and improved by 13%. During the
fourth quarter of 2014, production decreased to 68,000oz at a total cash cost of $884/oz compared to 75,000oz at a total cash cost of
$844/oz during the same quarter a year ago. The decrease in the quarter's production was a result of a planned 8% decrease in
recovered grade due to the depletion of higher grade ore sources. Total cash costs consequently increased by 5% despite lower mining
cost.
In Mali, production was 140,000oz at a total cash cost of $1,106/oz for the year ended December 2014 compared to 170,000oz at a
total cash cost of $1,192/oz for the year ended December 2013. Morila's production decreased by 23% as a result of a decrease in
recovered grade, due to treatment of lower grade mineralised waste tonnes, further impacted by a decrease in tonnes treated. Sadiola's
production decreased by 1% as a result of a decrease in recovered grade due to lower availability of higher grade oxide material, which
was partly offset by an increase in tonnes treated. Total cash costs decreased due to a 63% decline in volume mined and as a result of
further planned cost reductions having been achieved during the current year. At Yatela, production decreased in line with the cessation
of mining activities and planned transition to closure. Costs decreased substantially based on a shared allocation of fixed overheads
between the operating and closure activities.
In Tanzania, Geita's production was 477,000oz at a total cash cost of $599/oz for the year ended December 2014 compared to
459,000oz at a total cash cost of $515/oz for the year ended December 2013. Production increased due to a 28% increase in tonnes
treated, and the fact that tonnage throughput the previous year was impacted by replacement of the SAG mill. Total cash costs however
increased by 16% largely as a result of utilisation of higher cost ore stockpiles. During the fourth quarter of 2014, production decreased
to 144,000oz at a total cash cost of $429/oz compared to 154,000oz at a total cash cost of $543/oz during the same quarter a year ago.
The decline in production was due to a 16% planned decrease in recovered grade compared to the same quarter in the previous year
which had benefited from the feed of higher grade ore tonnes from Nyankanga pit, partly offset by a 12% increase in tonnage
throughput due to consistent mill running time and improved mill productivity. Total cash costs decreased by 21% primarily as a result of
lower mining costs incurred during the quarter that were driven by efficiency improvements and the benefits of lower fuel costs.
In The Democratic Republic of the Congo, Kibali's production attributable to AngloGold Ashanti was 237,000oz at a total cash cost of
$578/oz for the year ended December 2014 compared to 40,000oz at a total cash cost of $471/oz for the year ended December 2013.
During the fourth quarter of 2014, production increased to 80,000oz at a total cash cost of $546/oz compared to 40,000oz at a total cash
cost of $471/oz during the same quarter a year ago, the mine's first full quarter in operation. Tonnes treated increased 106% with
consistent plant operations following a full year of operations compared to the same quarter a year ago when the oxide plant was
undergoing commissioning.
In the Americas, production was 996,000oz at a total cash cost of $709/oz for the year ended December 2014 compared to 1.001Moz
at a total cash cost of $671/oz for the year ended December 2013. The reduction in production was due to decreased production at
Cripple Creek & Victor and Serra Grande, while AngloGold Ashanti Córrego do Sítio Mineração (AGA Mineração) and at Cerro
Vanguardia saw increased output. Cerro Vanguardia's production for the 2014 year was the highest annual production of the operation
in 11 years, mainly assisted by production from the heap leach. All-in sustaining costs were at $1,010/oz for the year ended December
2014, compared to $970/oz achieved for the year ended December 2013. Costs were negatively affected by lower grades in most
operations within the region. During the fourth quarter of 2014, production in the Americas increased to 280,000oz at a total cash cost of
$677/oz compared to 262,000oz at a total cash cost of $634/oz during the same quarter a year ago.
Work continued on Project 500 initiatives. These were focused on developing efficiencies and production improvements, including
underground mine design optimisation, extension of the operating life of tires, and optimisation and stabilisation of CIL and regeneration
circuits.
In Brazil, production was 539,000oz at a total cash cost of $670/oz for the year ended December 2014 compared to 529,000oz at a
total cash cost of $665/oz for the year ended December 2013. During the fourth quarter of 2014, production increased to 163,000oz at a
total cash cost of $566/oz compared to 154,000oz at a total cash cost of $560/oz during the same quarter a year ago.
At AGA Mineração production was 403,000oz at a total cash cost of $644/oz for the year ended December 2014 compared to
391,000oz at a total cash cost of $646/oz for the year ended December 2013. The production was mainly driven by the strong
performance in the fourth quarter, where production remained relatively stable at 121,000oz at a total cash cost of $565/oz compared to
120,000oz at a total cash cost of $518/oz during the same quarter a year ago. AGA Mineração delivered a strong performance with
increased tonnage and feed grades at both the Cuiabá and Córrego do Sítio complexes. Development work improved and production
began from the new orebody at Córrego do Sítio (Sulphide II) and full production rates were achieved at the underground Mine I.
Further production improvements were due to higher tonnages from Lamego that reached high production rate as a result of bulk mining
to offset lower grade, which was all planned to recover production delays from the previous quarters.
At Serra Grande production was 136,000oz at a total cash cost of $748/oz for the year ended December 2014 compared to 138,000oz
at a total cash cost of $719/oz for the year ended December 2013. During the fourth quarter of 2014, production increased to 42,000oz
at a total cash cost of $570/oz compared to 34,000oz at a total cash cost of $712/oz during the same quarter a year ago. Production
was 24% higher due to higher feed grade driven by operational initiatives aimed at the recovery of production following delays in
previous quarters.
In the United States, Cripple Creek & Victor production was 211,000oz at a total cash cost of $829/oz for the year ended December
2014 compared to 231,000oz at a total cash cost of $732/oz for the year ended December 2013. The decline in production was due to
delays experienced in the mill start-up. In addition, certification delays for an exposed liner necessitated modifications to the heap-leach
stacking plan which led to deferred production early in 2014. Total cash costs increased 13% due to lower recoverable grade mined and
production caused by the mill start-up delay. During the fourth quarter of 2014, production was 54,000oz at a total cash cost of $895/oz
compared to 47,000oz at a total cash cost of $825/oz during the same quarter a year ago. In Argentina, Cerro Vanguardia´s production
was 246,000oz at a total cash cost of $692/oz for the year ended December 2014 compared to 241,000oz at a total cash cost of
$622/oz for the year ended December 2013. At the end of 2014, Cerro Vanguardia (CVSA) achieved its highest annual production in 11
years. During the fourth quarter of 2014, production was 64,000oz at a total cash cost of $780/oz compared to 61,000oz at a total cash
cost of $672/oz during the same quarter a year ago. CVSA's gold production was higher mainly due to the effect of higher heap leach
production from higher low-grade material processed. The deterioration in total cash costs reflected lower silver by-product credits,
negative stockpile movement and ongoing inflationary pressures. Wage increases were finalised in October and were partially offset by
a higher exchange rate and the positive impact of higher production from the leach pad.
In Australia, production for the year ended December 2014 was 620,000oz at a total cash cost of $804/oz, compared to 342,000oz at a
total cash cost of $1,047/oz for the year ended December 2013. All-in sustaining costs were at $986/oz for the year ended December
2014, compared to $1,376/oz achieved for the year ended December 2013. The increased production is due to the first full year of
production from the new Tropicana mine. During the fourth quarter of 2014, production was 157,000oz at a total cash cost of $729/oz
compared to 169,000oz at a total cash cost of $640/oz during the same quarter a year ago.
At Sunrise Dam production for the year ended December 2014 was 262,000oz at a total cash cost of $1,105/oz, compared to
276,000oz at a total cash cost of $1,110/oz for the year ended December 2013. During the fourth quarter of 2014 production decreased
to 61,000oz at a total cash cost of $1,083/oz compared to 102,000oz at a total cash cost of $685/oz in the same quarter a year ago, as
lower grades were mined in line with the mine plan. Production in the fourth quarter of 2013 was higher and costs lower because high
grade ore from the crown pillar was mined in the final phase of the open pit. The underground mine delivered record quarterly ore
production of 675,000 tonnes in the fourth quarter, representing a 10% increase over the previous quarter and contributing to a 32%
increase in underground ore mined for the year from 1.8Mt in 2013 to 2.3Mt in 2014.
An excellent quarter contributed to Tropicana achieving production guidance. Production for the year ended December 2014 was
358,000oz at a total cash cost of $545/oz, compared to 66,000oz at a total cash cost of $568/oz for the year ended December 2013.
During the fourth quarter of 2014 production increased 45% to 96,000oz at a total cash cost of $482/oz compared to 66,000oz a total
cash cost of $569/oz in the same quarter a year ago. The high fourth quarter production was due to higher ore tonnes mined, enabling a
higher head grade to be delivered to the plant through effective grade streaming. Despite higher maintenance costs, total cash costs
decreased by 33%, due mainly to the deferral of waste mining costs in the Havana 2 Pit and the higher gold production.
Regulatory approvals were received during the quarter to complete the expansion of the borefield that supplies process water to the
operation in Tropicana. The borefield capacity increased steadily through the quarter and it is expected that by the end of the March
2015 quarter an additional 27 bores will have been installed and commissioned. This would take the number of bores servicing the plant
to 51, with a total capacity of more than 1,000 tph, providing ample redundancy for the site's water requirements.
UPDATE ON CAPITAL PROJECTS
In the Americas, the Mine Life Extension project at CC&V ($585m approved cost over 5 years) is progressing on schedule. Capital
spending in 2014 was near plan and primarily related to the Mine Life Extension 2 (MLE2) project. The MLE2 project includes a new
Mill and a new Valley Leach Facility with an associated gold recovery plant. Mill construction is 98% complete. Testing and
commissioning of completed systems is progressing in parallel with completing the electrical construction. The mill began
commissioning and mill ore feed and production ramp up is expected to start in the first quarter of 2015. The new Valley Leach facility
and associated gold recovery plant are still scheduled to start production in 2016.
At Obuasi, development of a decline from surface to the existing mining blocks continued in 2014. The decline is expected to allow
development of the appropriate infrastructure to enable mechanised operations and de-bottleneck the mine, which was constrained by
an outmoded, labour-intensive mining method and also ageing and sub-optimal vertical hoisting infrastructure. By year-end, Obuasi
successfully transitioned to limited operations and the entire work force was retrenched with subsequent recruitment of a limited number
of employees on a one-year, fixed-term contract while the feasibility study progressed.
In Kibali, the limited Relocation Action Plan (RAP) for Mofu was completed while the Gorumbwa RAP is expected to commence during
2015 with planned completion in 2016. A significant number new houses and a church were built and completed by year end. The
focus for 2015 has moved to the completion of the paste plant and the second hydropower station. The sinking of the vertical shaft
remained ahead of schedule with a shaft depth of 720m at the end of the quarter, with only 40m of sinking remaining to reach the
proposed shaft bottom. The development of the decline system continued well during the quarter and remained ahead of plan. Blasting
of the first stope took place during the fourth quarter of 2014. The focus remains on stoping as well as the development of the ventilation
infrastructure. Total capital expenditure was $386.5m for the year and $95.3m for the quarter ended 31 December 2014 at 100%. The
construction of the metallurgical facility is now completed with only limited items on a punch list, which is expected to lead to reduced
spend going forward.
TECHNOLOGY AND INNOVATION UPDATE
The Technology Innovation Consortium made important progress to develop technology to safely extract ore from underground mines in
South Africa. The company plans to further develop the work towards a more efficient, cost effective technology to extract ore from
areas not suitable for conventional mining. Progress on key technologies include:
Reef Boring
- TauTona mine – Test site:
Eight holes were drilled during the fourth quarter of 2014, making a total of 30 holes for the year ended 31 December
2014. Failure on the gearbox and drill rods hampered the performance of the machine and has since been refurbished.
Equipping of an extension to the test site is expected to continue during the first quarter, while drilling is expected to
continue in the second quarter of 2015.
- TauTona mine – Prototype site
In the fourth quarter, a total of 15 holes were drilled in the prototype sites. The Atlantis machine was removed from
underground in the third quarter of 2014 and modified to allow operation in raise boring mode. Industrial engineers
conducted time and motion studies on the machines to identify shortcomings in both the technical and work
management aspects to improve the machine performance. Findings are expected to be applied during the first quarter
of 2015.
- Great Noligwa and Kopanang mine test sites
The softer footwall composition associated with the C-reef continued to pose a challenge to the HPE narrow reef boring
machine. This method of drilling requires a double pass drilling sequence. Different hammer configurations/dimensions
were tested on the HPE machine however with no successful completion on reef extraction across the full length of the
planned hole as the cutter head deflected or got stuck. The technology was then tested in the Vaal-reef where the
footwall conditions are harder and more consistent, after the machine was moved to Kopanang mine. Alternative
technologies, such as Thermal Spalling which has shown encouraging results in the initial test work at Kopanang mine,
may be investigated as possible solutions to extracting the narrow C-reef vein at Great Noligwa mine.
Ore body Knowledge and Exploration
Orebody knowledge and exploration plays a critical part in the mine design of an orebody. Enhanced geological information is expected
to improve current planning practices and to be essential in the application of mechanical reef mining. In order to mine the different reef
packages optimally, the location of the reef terraces, structural information and time to analyse geological information are essential for
the success of mechanical mining methods.
Reverse Circulation (RC) drilling Trial 6 was completed in the fourth quarter of the year with four holes drilled. A new compressor
increasing the air pressure and volume was tested. Improved drilling rates and an overall 294m depth (drill string length available) was
reached in line with the set target of 8m/hour and depths of 270m to 300m. Accuracy and deflection remain a focus and are expected to
be addressed when testing the stabilisers in trial 7 by the end of the first quarter in 2015.
Ultra High Strength Backfill (UHSB)
The successful development of this ultra-high strength backfill (UHSB) product, together with the Reef Boring technology, for use in
mining applications as a support medium, replacing the need for current local and regional support, creates the potential for earlier shaft
pillar mining, pre-extraction of planned stabilising pillars, post extraction of already created stabilising pillars and changing the current
conventional mining method to a mechanical reef boring method.
Achieving this requires the development of a cost effective, UHSB formula, which on curing is expected to attain 170 - 200 MPa strength
(Uniaxial Compressive Strength). Surface testing to increase the mixing volume from 4m³/hour to 8m³/hour has seen positive results.
Alternative mixing methodologies have been developed on a laboratory scale mixer in Germany. A full scale prototype mixer was
manufactured, delivered and commissioned. Initial trials indicated positive results. Mixing trials to increase the volume per mix as well
as reducing the mixing times are expected to continue in the first quarter of 2015.
As part of the on-going process to install instrumentation, a software data logging system was installed and commissioned in the
production site block. Data are currently being captured and analysed. Surface tailings dry plant has been commissioned on surface at
TauTona mine.
EXPLORATION UPDATE
Total expensed exploration and evaluation costs (including technology) during the fourth quarter, inclusive of expenditure at equity
accounted joint ventures, were $48m ($12m on Brownfield, $13m on Greenfield and $23m on pre-feasibility studies), compared to $48m
for the same quarter during the previous year, 2013.
GREENFIELDS EXPLORATION
During the year ended 31 December 2014, Greenfields focussed its project portfolio with significant tenure rationalisation completed in
Colombia and Australia. AngloGold Ashanti remains committed to its core Greenfields projects comprised of over 13,000km2 of highly-
prospective ground in three countries; Australia, Colombia, and Guinea. Total expenditure for the quarter was $13m, which included
7,192m of diamond and RC drilling.
In Colombia, resource drilling continued on the Nuevo Chaquiro deposit at Quebradona, a joint venture with B2Gold (AngloGold Ashanti
89.75%), with the objective of defining the limits of the higher grade zone and infill drilling on this part of the resource to an indicated
status. During the quarter 5,265m of diamond drilling, in five holes was carried out with two drill rigs. Multiple consistently mineralised
intersections have been returned from within the high grade (>0.6% Cu) intrusive phase within the declared resource. The latest drill
results from the drilling include CHA-057 which intersected 1088m @ 0.82% Cu and 0.41 g/t Au from 238m and CHA-058 intersected
1086m @ 0.87% Cu and 0.44 g/t Au from 144m. These two holes significantly extended high grade (>0.6% Cu) mineralisation towards
surface and towards the southwest.
In Australia, at the Tropicana JV, airborne magnetic and radiometric surveys were completed in Q4 over tenements in the south of the
project. Further encouraging results were returned from Aircore (AC) and Reverse Circulation (RC) drilling at the Madras prospect
approximately 25km south of the Tropicana Gold Mine. At the Mullion Project (AngloGold Ashanti 100%) in New South Wales, land
access was secured and ground gravity geophysical surveying was completed in the latter part of the year. Processing and
interpretation of data is ongoing.
In Guinea, Greenfields was focused on the handover of technical and administrative data for Blocks 2-4 to the AngloGold Ashanti
Brownfields division. Field work was put on temporary suspension as a precautionary measure due to the Ebola outbreak.
BROWNFIELDS EXPLORATION
A total of 82,900m of diamond and RC drilling was completed during the fourth quarter of 2014. Exploration on brownfields was carried
out in eleven countries.
In the South Africa region, Brownfields exploration continued with a total of 5 surface holes drilled during the year. This included four at
the West Wits operations at Mponeng's Western Ultra Deep Levels (WUDLs) and one at the Vaal River operations.
In Argentina, at Cerro Vanguardia, drilling programmes for Mineral Resource expansion and exploration continued during the year.
Follow up drilling for vein extensions along strike and at depth, guided by geophysical surveys, identified additional mill ore. Mapping,
trenching and channel sampling work were completed in order to define new exploration targets.
In Brazil, the Mineral Resource development drilling programmes continued at the Cuiabá and Lamego mines with a focus on support to
long-term planning and Mineral Resource definition ahead of mining. The surface drilling programs at the Córrego do Sítio mine
continued to infill and expand oxide Mineral Resource with regional exploration conducted to test near-mine satellite projects. At Serra
Grande, the exploration drilling continued to delineate the Inga mineralised structure. Geophysical surveys and soil sampling campaigns
were completed as part of the target generation programs in the district.
In Colombia, exploration in the Gramalote area was focused on infill drilling to support the updated Mineral Resource estimation for the
Gramalote Central deposit. Drilling programs were also conducted to expand the nearby Monjas West target. At La Colosa, Mineral
Resource development drilling continued at a slower pace compared to previous years as emphasis on other project related drilling
expanded to support geotechnical, hydrological and site infrastructure studies. The geological model was updated during the year as
part of Mineral Resource addition that expanded the deposit to the northwest and at depth.
In the United States of America, the Mineral Resource development drilling programme continued at Cripple Creek and Victor. Drilling
was directed toward identifying expansion opportunities for the current open pit operations through high wall laybacks with selective
drilling also conducted to test deeper targets below or adjacent to planned open pit designs that may provide additional mill feed
material.
In Tanzania, at Geita, drilling concentrated largely on infill drilling programmes within current open pits (Geita Hill, Nyankanga and Star
& Comet) and extensions thereof. Limited pre-resource drilling programs were undertaken to test the underground potential at Star &
Comet Deeps. A total of 111 holes (20,220m) were completed.
In Guinea, at Siguiri, 17,823m of RC and DD were drilled across a total of 6 projects in Block 1. These included reconnaissance, Mineral
Resource delineation, and infill projects for both oxide and fresh rock mineralisation. The Ebola epidemic in West Africa caused
significant disruptions, particularly with field mapping and geophysics and the work programme was suspended in the middle of the
year.
In Ghana, at Obuasi, no surface exploration took place. Underground exploration focused on a portion of the Red Zone 6 (Block 9) area
above 50 Level, drilling from the 41S-294W cross cut. The objective of the drilling program was to upgrade Inferred Mineral Resource
within the block. 24 holes were completed (4,115m). At Iduapriem, the major focus for the early part of 2014 was the logging, sampling
and analysis of core from the 2013 Block 7&8 infill drilling program. During the year, several new products were produced from the
existing regional magnetic data over the Iduapriem concession. Analysis of a distinct magnetic anomaly in an area west of the
Teberebie warehouse, which is also being exploited by Artisanal Small-scale Miners, led to the identification of hydrothermal, vein-
hosted, mineralisation. Initial sampling results show some promise and a detailed follow-up will commence in 2015.
In the Democratic Republic of the Congo, at Kibali, drilling totalled 19,018m, with an additional 1,666m drilled on regional projects. The
exploration philosophy remains to add material to Ore Reserve at above run of mine grade, to find gap fillers where required, or to add
sufficient new material (3-5 Moz) to induce a forced step change to the operation. At Gorumbwa, three phases of infill drilling were
completed during the year, with the last phase completed in October. A revised Mineral Resource estimation was completed in
November and showed 470,500oz from 4.56Mt @ 3.21g/t (within the $1500 shell at 0.5g/t cut-off), with 22% of the Mineral Resource
remaining Inferred.
In Mali, at Sadiola work was completed on a number of key oxide targets that were identified. CET research continued during the year
and a structural framework for mineralisation was defined for Tambali and the FE complex. The most promising target, FE2S, shows
potential for low grade, wide ore zones over a 1.2km strike length. Results are outstanding for drilling between FN2 and FN3 along the
Sadiola northern extension where there is upside potential for more oxides. Limited fresh rock exploration was conducted in the FE3
and FE4 pits with positive results received from both. A scoping level study was done for the newly generated Tambali Mineral
Resource and upside potential model to ascertain the economic potential. Drilling targets were defined for a possible infill programme.
Field mapping and sampling continued over the lease area and the geology map has been refined with new information from most
target areas.
In Australia, a 3D seismic survey to image the mineralised zone down dip of Tropicana was designed and completed during the year.
The 3D seismic dataset is high quality and is being interpreted to create a structural model that will be used to help plan drill holes in
2015. At Sunrise Dam all mine exploration was focussed on Mineral Resource definition and extensional activities to support the
underground mine. Drilling metres totalled 53.1 km for the year, of which 67% was diamond core and 33% UG-RC. Drilling in 2014
targeted the Vogue/Dolly area (42%); Cosmo East (23%); Sunrise Shear (22%) and GQ South (13%). Drilling in Vogue/Dolly saw an
Indicated Mineral Resource defined above the 1,700mRL, in line with the plan to start mining stopes in the upper part of Vogue/Dolly
area in 2015. In Cosmo East, the mining area has now been upgraded to an Indicated Mineral Resource down to the ~1,500mRL,
enabling planned mining below the current 1,625mRL level. The strategy now moves to more extensional drilling and new areas in 2015
to replenish the Inferred Mineral Resource.
OUTLOOK
First Quarter
Production guidance is estimated to be between 900kozs to 940kozs at total cash costs of $830/oz to $860/oz, assuming average
exchange rates against the US dollar of 11.60 (Rand), 2.60 ( Brazil Real), 0.85 (Aus$) and 9.50 (Argentina Peso), with oil prices at
$70/bl average for the quarter.
This guidance takes into account the slow seasonal ramp-up in production following the Christmas break, ongoing power disruptions
and also interruptions to normal operations related to safety-related stoppages, all in South Africa.
Year
Production guidance for 2015 year is estimated to be between 4.0Moz to 4.3Moz, reflecting the sale of the Navachab mine, reduction in
production from Mali, cessation of underground production at Obuasi, only partially offset by the ramp-up in production from Cripple
Creek & Victor starting after the first quarter.
Total cash costs are estimated to be between $770/oz to $820/oz and all in sustaining costs at $1,000/oz to $1,050/oz at average
exchange rates against the US dollar of 11.60 (Rand), 2.60 ( Brazil Real), 0.85 (Aus$) and 9.50 (Argentina Peso), with oil at $70/bl
average for the year.
The production and cost estimates outlined above do not take into account impacts of any unforeseen
operational disruptions or changes to the portfolio.
For 2015, capital expenditure is anticipated to be between $1.0bn and $1.1bn. Corporate and marketing costs are estimated to be
between $95m and $110m and expensed exploration and study costs including equity accounted investments at $155m to $175m.
Depreciation and amortisation is forecasted at $860m and interest and finance costs are expected to be $270m (income statement) and
$240m (cash flow statement).
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.
MINERAL RESOURCE AND ORE RESERVE
The AngloGold Ashanti Mineral Resource and Ore Reserve are reported in accordance with the minimum
standards described by the Australasian Code for Reporting of Exploration Results, Mineral Resources and
Ore Reserves (JORC Code, 2012 Edition), and also conform to the standards set out in the South African
Code for the Reporting of Exploration Results, Mineral Resources and Mineral Reserves (The SAMREC
Code, 2007 edition and amended July 2009). Mineral Resource is inclusive of the Ore Reserve component
unless otherwise stated. In complying with revisions to the JORC code the changes to AngloGold Ashanti's
Mineral Resource and Ore Reserve have been reviewed and it was concluded that none of the changes are
material to the overall valuation of the company. AngloGold Ashanti has therefore once again resolved not to
provide the detailed reporting as defined in Table 1 of the code. The company will however continue to
provide the high level of detail it has in previous years in order to comply with the transparency requirements
of the code.
AngloGold Ashanti strives to actively create value by growing its major asset – the Mineral Resource and
Ore Reserve. This drive is based on active, well-defined brownfields and greenfields exploration
programmes, innovation in both geological modelling and mine planning and continual optimisation of its
asset portfolio.
GOLD PRICE
The following local prices of gold were used as a basis for estimation in the December 2014 declaration:
Local prices of gold
Gold Price
South Africa Australia Brazil Argentina
USD/oz ZAR/kg AUD/oz BRL/oz ARS/oz
2014 Ore Reserve 1 100 398 452 1 261 2 801 8 979
2014 Mineral Resource 1 600 429 803 1 566 3 184 12 319
The JORC and SAMREC Codes require the use of reasonable economic assumptions. These include long-
range commodity price forecasts which are prepared in-house.
MINERAL RESOURCE
The total Mineral Resource decreased from 233.0 million ounces (Moz) in December 2013 to 232.0Moz in
December 2014. A gross annual increase of 8.7Moz occurred before depletion and disposals, while the net
decrease after allowing for depletion and disposals is 1.0Moz. Changes in economic assumptions from
December 2013 to December 2014 resulted in a 6.4Moz decrease to the Mineral Resource, whilst
exploration and modelling resulted in an increase of 14.4Moz. Depletion from the Mineral Resource for the
year totalled 5.9Moz and the sale of Navachab totalled 3.8Moz. The Mineral Resource has been estimated
at a gold price of USD1,600/oz (2013: USD1,600/oz).
MINERAL RESOURCE
Moz
Mineral Resource as at 31 December 2013 233.0
Disposal - Navachab -3.8
Sub Total 229.2
Depletion -5.9
Sub Total 223.3
Additions
Nuevo Chaquiro Maiden Mineral Resource declaration 5.5
La Colosa Mineral Resource growth due to exploration 5.1
success
AGA Mineracao Exploration success at all three operations 2.1
Sunrise Dam Revisions to the modelling approach. 1.6
Siguiri Hard rock exploration additions from three 1.5
deposits
Other Additions less than 0.5Moz 1.5
Sub Total 240.6
Reductions
Mponeng Data driven revision to models and a Mineral -3.4
Resource clean up
Kopanang Mineral Resource clean-up of uneconomic and -1.8
inaccessible areas
Moab Khotsong
(Including Great Exploration driven revisions to models -1.4
Noligwa)
Geita Increased costs resulting in pit size reductions -0.9
Other Reductions less than 0.5Moz -1.1
Mineral Resource as at 31 December 2014 232.0
Rounding of numbers may result in computational discrepancies.
ORE RESERVE
The AngloGold Ashanti Ore Reserve reduced from 67.9Moz in December 2013 to 57.5Moz in December
2014. This gross annual decrease of 10.5Moz includes depletion of 4.9Moz and the sale of Navachab
1.9Moz. The balance of 3.7Moz reductions in Ore Reserve, results from changes in economic assumptions
between 2013 and 2014 which resulted in a reduction of 3.0Moz to the Ore Reserve, whilst exploration and
modelling changes resulted in a reduction of a further 0.7Moz. The Ore Reserve has been estimated using a
gold price of USD1,100/oz (2013: USD1,100/oz).
ORE RESERVE Moz
Ore Reserve as at 31 December 2013 67.9
Disposal - Navachab -1.9
Sub Total 66.1
Depletion -4.9
Sub Total 61.1
Additions
Siguri Inclusion of fresh rock for the Kami deposit 0.6
Sunrise Dam Exploration success at Vogue 0.4
Other Additions less than 0.3Moz 1.0
Sub Total 63.1
Reductions
Obuasi Initial results of Feasibility study -2.6
Revisions to the Carbon Leader and VCR models due to new
Mponeng -1.3
exploration and development data
Moab Khotsong
New surface exploration data led to revision of the
(Including Great -0.8
project Zaaiplaats models
Noligwa)
Increased costs and reduction in sub marginal
CC&V -0.4
ounces
Other Reductions less than 0.3Moz -0.5
Ore Reserve as at 31 December 2014 57.5
Rounding of numbers may result in computational discrepancies.
BY-PRODUCTS
Several by-products will be recovered as a result of processing of the gold Ore Reserve. These include
55.6kt of uranium oxide from the South African operations, 0.32Mt of sulphur from Brazil and 25.1Moz of
silver from Argentina.
The initial publication of the Nuevo Chaquiro Mineral Resource added 3.55MT of copper, 76.5Moz of Silver
and 62.9kt of Molybdenum.
COMPETENT PERSONS
The information in this report relating to exploration results, Mineral Resources and Ore Reserves is based
on information compiled by or under the supervision of the Competent Persons as defined in the JORC or
SAMREC Codes. All Competent Persons are employed by AngloGold Ashanti, unless stated otherwise, and
have sufficient experience relevant to the style of mineralisation and type of deposit under consideration and
to the activity which they are undertaking. The Competent Persons consent to the inclusion of Exploration
Results, Mineral Resource and Ore Reserve information in this report, in the form and context in which it
appears. The legal tenure of each operation and project has been verified to the satisfaction of the
accountable Competent Person.
During the past decade, the company has developed and implemented a rigorous system of internal and
external reviews aimed at providing assurance in respect of Ore Reserve and Mineral Resource estimates.
The following operations were subject to an external review in line with the policy that each operation project
will be reviewed by an independent third party on average once every three years:
- Mineral Resource and Ore Reserve at Mponeng
- Mineral Resource and Ore Reserve at Moab Khotsong
- Mineral Resource and Ore Reserve at Iduapriem
- Mineral Resource and Ore Reserve at Sunrise Dam
- Mineral Resource and Ore Reserve at Cerro Vanguardia
- Mineral Resource and Ore Reserve at Serra Grande
- Mineral Resource and Ore Reserve at Obuasi
The external reviews were conducted by the following companies The Mineral Corporation (Mponeng and
Moab Khotsong Mines), Coffey Mining (Iduapriem Mine), Snowden (Sunrise Dam Mine), Optiro (Cerro
Vanguardia and Serra Grande Mines), AMEC (Obuasi Mineral Resource) and SRK (Obuasi Ore Reserve).
Certificate of competence documentation has been received from all companies conducting the external
reviews to state that the Mineral Resource and/or Ore Reserve comply with the JORC Code and the
SAMREC Code.
Numerous internal Mineral Resource and Ore Reserve process reviews were completed by suitably qualified
Competent Persons from within AngloGold Ashanti. A documented chain of responsibility exists from the
Competent Persons at the operations to the company's Mineral Resource and Ore Reserve Steering
Committee.
Accordingly, the Chairman of the Mineral Resource and Ore Reserve Steering Committee, VA Chamberlain,
MSc (Mining Engineering), BSc (Hons) (Geology), MGSSA, FAusIMM, assumes responsibility for the Mineral
Resource and Ore Reserve processes for AngloGold Ashanti and is satisfied that the Competent Persons
have fulfilled their responsibilities. VA Chamberlain has 27 years' experience in exploration and mining and is
employed full-time by AngloGold Ashanti and can be contacted at the following address: 76 Jeppe Street,
Newtown, 2001, South Africa.
A detailed breakdown of Mineral Resource and Ore Reserve and backup detail is provided on the AngloGold
Ashanti website (www.anglogoldashanti.com) and www.aga-reports.com.
MINERAL RESOURCE BY REGION (ATTRIBUTABLE) INCLUSIVE OF ORE RESERVE
Gold Tonnes Grade Contained gold
as at 31 December 2014 Category million g/t Tonnes Moz
South Africa Measured 147.19 2.35 345.91 11.12
Indicated 946.99 1.93 1,829.48 58.82
Inferred 47.34 10.31 487.87 15.69
Total 1,141.52 2.33 2,663.26 85.63
Continental Africa Measured 79.94 3.07 245.06 7.88
Indicated 419.68 2.59 1,086.73 34.94
Inferred 277.85 2.40 667.86 21.47
Total 777.47 2.57 1,999.66 64.29
Australasia Measured 31.77 1.43 45.46 1.46
Indicated 83.83 2.25 188.70 6.07
Inferred 23.35 2.73 63.84 2.05
Total 138.95 2.14 298.00 9.58
Americas Measured 284.50 1.15 326.31 10.49
Indicated 1,195.53 0.94 1,128.97 36.30
Inferred 1,076.04 0.74 799.23 25.70
Total 2,556.07 0.88 2,254.52 72.48
AngloGold Ashanti total Measured 543.41 1.77 962.74 30.95
Indicated 2,646.03 1.60 4,233.89 136.12
Inferred 1,424.57 1.42 2,018.80 64.91
Total 4,614.01 1.56 7,215.43 231.98
Rounding of figures may result in computational discrepancies.
MINERAL RESOURCE BY REGION (ATTRIBUTABLE) EXCLUSIVE OF ORE RESERVE
Gold Tonnes Grade Contained gold
as at 31 December 2014 Category million g/t Tonnes Moz
South Africa Measured 15.75 15.17 239.06 7.69
Indicated 251.24 3.49 877.25 28.20
Inferred 13.43 18.32 246.09 7.91
Total 280.43 4.86 1,362.39 43.80
Continental Africa Measured 36.80 4.89 179.78 5.78
Indicated 215.36 2.58 556.29 17.89
Inferred 276.82 2.39 661.34 21.26
Total 528.97 2.64 1,397.41 44.93
Australasia Measured 3.50 0.83 2.89 0.09
Indicated 55.33 2.18 120.88 3.89
Inferred 23.35 2.73 63.84 2.05
Total 82.18 2.28 187.62 6.03
Americas Measured 157.88 1.15 181.18 5.83
Indicated 1,126.20 0.90 1,017.56 32.72
Inferred 1,064.18 0.74 784.22 25.21
Total 2,348.27 0.84 1,982.97 63.75
AngloGold Ashanti total Measured 213.94 2.82 602.91 19.38
Indicated 1,648.14 1.56 2,571.98 82.69
Inferred 1,377.77 1.27 1,755.49 56.44
Total 3,239.84 1.52 4,930.39 158.52
Rounding of figures may result in computational discrepancies.
ORE RESERVE BY REGION (ATTRIBUTABLE)
Gold Tonnes Grade Contained gold
as at 31 December 2014 Category million g/t Tonnes Moz
South Africa Proved 133.45 0.64 85.20 2.74
Probable 713.99 1.08 768.72 24.71
Total 847.45 1.01 853.92 27.45
Continental Africa Proved 44.95 1.52 68.12 2.19
Probable 203.84 2.55 520.67 16.74
Total 248.78 2.37 588.79 18.93
Australasia Proved 28.27 1.51 42.57 1.37
Probable 28.19 2.38 67.09 2.16
Total 56.46 1.94 109.66 3.53
Americas Proved 124.64 1.01 126.14 4.06
Probable 72.87 1.50 109.03 3.51
Total 197.51 1.19 235.17 7.56
AngloGold Ashanti total Proved 331.30 0.97 322.03 10.35
Probable 1,018.90 1.44 1,465.51 47.12
Total 1,350.20 1.32 1,787.54 57.47
Rounding of figures may result in computational discrepancies.
Independent auditor's review report on the Condensed Consolidated Financial Information for the quarter and twelve months ended 31
December 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, which comprise the accompanying condensed consolidated statement of financial
position as at 31 December 2014, the condensed consolidated income statement, statement of comprehensive income, statement of
changes in equity and statement of cash flows for the quarter and twelve 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 twelve months ended 31 December 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
19 February 2015
Group income statement
Quarter Quarter Quarter Year Year
ended ended ended ended ended
December September December December December
2014 2014 2013 2014 2013
US Dollar million Notes Reviewed Reviewed Reviewed Reviewed Audited
Revenue 2 1,324 1,337 1,474 5,378 5,708
Gold income 2 1,278 1,295 1,418 5,218 5,497
Cost of sales 3 (1,061) (1,052) (1,042) (4,190) (4,146)
Gain on non-hedge derivatives and other
commodity contracts 5 30 28 15 94
Gross profit 222 273 404 1,043 1,445
Corporate administration, marketing and other
expenses (23) (24) (37) (92) (201)
Exploration and evaluation costs (45) (37) (41) (144) (255)
Other operating expenses 4 (7) (9) (1) (28) (19)
Special items 5 (182) (54) (90) (260) (3,410)
Operating (loss) profit (35) 149 235 519 (2,440)
Dividends received 2 - - - - 5
Interest received 2 6 6 15 24 39
Exchange gain (loss) 5 4 4 (7) 14
Finance costs and unwinding of obligations 6 (67) (69) (75) (278) (296)
Fair value adjustment on USD1.25bn bonds 63 20 (12) (17) (58)
Fair value adjustment on option component of
convertible bonds - - - - 9
Fair value adjustment on mandatory convertible
bonds - - - - 356
Share of associates and joint ventures' profit (loss) 7 22 19 4 (25) (162)
(Loss) profit before taxation (6) 129 171 216 (2,533)
Taxation 8 (49) (85) (426) (255) 333
(Loss) profit for the period (55) 44 (255) (39) (2,200)
Allocated as follows:
Equity shareholders (58) 41 (305) (58) (2,230)
Non-controlling interests 3 3 50 19 30
(55) 44 (255) (39) (2,200)
Basic (loss) earnings per ordinary share (cents) (1) (14) 10 (75) (14) (568)
Diluted (loss) earnings per ordinary share (cents) (2) (14) 10 (75) (14) (631)
(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 year ended 31 December 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 year ended 31 December 2014 were reviewed, but not
audited, by the Group's statutory auditors, Ernst & Young Inc. A copy of their unmodified review report is available for inspection at the company's
head office.
Group statement of comprehensive income
Quarter Quarter Quarter Year Year
ended ended ended ended ended
December September December December December
2014 2014 2013 2014 2013
US Dollar million Reviewed Reviewed Reviewed Reviewed Audited
(Loss) profit for the period (55) 44 (255) (39) (2,200)
Items that will be reclassified subsequently
to profit or loss:
Exchange differences on translation of foreign
operations (67) (118) (85) (201) (433)
Share of associates and joint ventures' other
comprehensive income - (1) - - -
Net gain (loss) on available-for-sale financial assets 1 (10) - - (23)
Release on impairment of available-for-sale
financial assets 1 - 1 2 30
Release on disposal of available-for-sale
financial assets (1) - - (1) (1)
Cash flow hedges - - 1 - 1
Deferred taxation thereon (1) 4 - (1) 2
- (6) 2 - 9
Items that will not be reclassified
subsequently to profit or loss:
Actuarial (loss) gain recognised (31) (7) 52 (22) 69
Deferred taxation thereon 8 2 (15) 6 (20)
(23) (5) 37 (16) 49
Other comprehensive loss for the
period, net of tax (90) (130) (46) (217) (375)
Total comprehensive loss for the
period, net of tax (145) (86) (301) (256) (2,575)
Allocated as follows:
Equity shareholders (148) (89) (351) (275) (2,605)
Non-controlling interests 3 3 50 19 30
(145) (86) (301) (256) (2,575)
Rounding of figures may result in computational discrepancies.
Group statement of financial position
As at As at As at
December September December
2014 2014 2013
US Dollar million Notes Reviewed Reviewed Audited
ASSETS
Non-current assets
Tangible assets 4,863 4,839 4,815
Intangible assets 225 247 267
Investments in associates and joint ventures 1,427 1,373 1,327
Other investments 126 127 131
Inventories 636 606 586
Trade and other receivables 20 30 29
Deferred taxation 127 160 177
Cash restricted for use 36 38 31
Other non-current assets 25 47 41
7,485 7,467 7,404
Current assets
Other investments - - 1
Inventories 888 959 1,053
Trade and other receivables 278 312 369
Cash restricted for use 15 15 46
Cash and cash equivalents 468 557 648
1,649 1,843 2,117
Non-current assets held for sale 14 - - 153
1,649 1,843 2,270
TOTAL ASSETS 9,134 9,310 9,674
EQUITY AND LIABILITIES
Share capital and premium 11 7,041 7,036 7,006
Accumulated losses and other reserves (4,196) (4,051) (3,927)
Shareholders' equity 2,845 2,985 3,079
Non-controlling interests 26 25 28
Total equity 2,871 3,010 3,107
Non-current liabilities
Borrowings 3,498 3,521 3,633
Environmental rehabilitation and other provisions 1,052 1,022 963
Provision for pension and post-retirement benefits 147 142 152
Trade, other payables and deferred income 15 13 4
Deferred taxation 567 597 579
5,279 5,295 5,331
Current liabilities
Borrowings 223 159 258
Trade, other payables and deferred income 695 751 820
Bank overdraft - 13 20
Taxation 66 82 81
984 1,005 1,179
Non-current liabilities held for sale 14 - - 57
984 1,005 1,236
Total liabilities 6,263 6,300 6,567
TOTAL EQUITY AND LIABILITIES 9,134 9,310 9,674
Rounding of figures may result in computational discrepancies.
Group statement of cash flows
Quarter Quarter Quarter Year Year
ended ended ended ended ended
December September December December December
2014 2014 2013 2014 2013
US Dollar million Reviewed Reviewed Reviewed Reviewed Audited
Cash flows from operating activities
Receipts from customers 1,318 1,358 1,479 5,351 5,709
Payments to suppliers and employees (1,060) (997) (1,039) (3,978) (4,317)
Cash generated from operations 258 361 440 1,373 1,392
Dividends received from joint ventures - - - - 18
Taxation refund 3 - 22 41 23
Taxation paid (48) (41) (31) (194) (187)
Net cash inflow from operating activities 213 320 431 1,220 1,246
Cash flows from investing activities
Capital expenditure (314) (222) (372) (1,013) (1,501)
Interest capitalised and paid - - - (1) (5)
Expenditure on intangible assets (2) - (17) (5) (68)
Proceeds from disposal of tangible assets - 4 2 31 10
Other investments acquired (17) (14) (18) (79) (91)
Proceeds from disposal of other investments 14 15 15 73 81
Investments in associates and joint ventures (3) (10) (78) (65) (472)
Proceeds from disposal of associates and joint ventures - - - - 6
Loans advanced to associates and joint ventures (50) - (14) (56) (41)
Loans repaid by associates and joint ventures 16 4 - 20 33
Dividends received - - - - 5
Proceeds from disposal of subsidiary - - - 105 2
Cash in subsidiary disposed and transfers to held for sale - - 3 2 (2)
Decrease (increase) in cash restricted for use 2 (1) (13) 24 (20)
Interest received 5 4 10 21 23
Net cash outflow from investing activities (349) (220) (482) (943) (2,040)
Cash flows from financing activities
Proceeds from borrowings 182 338 238 611 2,344
Repayment of borrowings (72) (386) (260) (761) (1,486)
Finance costs paid (38) (83) (42) (245) (200)
Revolving credit facility and bond transaction costs - (9) (2) (9) (36)
Dividends paid (8) (6) (11) (17) (62)
Net cash inflow (outflow) from financing activities 64 (146) (77) (421) 560
Net decrease in cash and cash equivalents (72) (46) (128) (144) (234)
Translation (4) (10) (5) (16) (30)
Cash and cash equivalents at beginning of period 544 600 761 628 892
Cash and cash equivalents at end of period (1) 468 544 628 468 628
Cash generated from operations
(Loss) profit before taxation (6) 129 171 216 (2,533)
Adjusted for:
Movement on non-hedge derivatives and other commodity contracts (5) (29) (28) (13) (94)
Amortisation of tangible assets 214 182 202 750 775
Finance costs and unwinding of obligations 67 69 75 278 296
Environmental, rehabilitation and other expenditure 24 (6) (37) 32 (66)
Special items 21 14 88 31 3,399
Amortisation of intangible assets 9 9 9 36 24
Fair value adjustment on USD1.25bn bonds (63) (20) 12 17 58
Fair value adjustment on option component of convertible bonds - - - - (9)
Fair value adjustment on mandatory convertible bonds - - - - (356)
Interest received (6) (6) (15) (24) (39)
Share of associates and joint ventures' (profit) loss (22) (19) (4) 25 162
Other non-cash movements 6 19 7 68 25
Movements in working capital 19 19 (40) (43) (250)
258 361 440 1,373 1,392
Movements in working capital
Decrease (increase) in inventories 32 33 (26) 64 (142)
Decrease in trade and other receivables 35 33 20 52 69
Decrease in trade, other payables and deferred income (48) (47) (34) (159) (177)
19 19 (40) (43) (250)
(1) The cash and cash equivalents balance at 31 December 2014 includes a bank overdraft included in the statement of financial position as part of
current liabilities of nil (30 September 2014:USD13m; 31 December 2013: USD20m).
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 (90) (561) 5,473 21 5,494
Loss for the period (2,230) (2,230) 30 (2,200)
Other comprehensive income (loss) 1 8 49 (433) (375) (375)
Total comprehensive (loss) income - - (2,230) 1 8 49 (433) (2,605) 30 (2,575)
Shares issued 264 264 264
Share-based payment for share awards
net of exercised (13) (13) (13)
Dividends paid (40) (40) (40)
Dividends of subsidiaries - (23) (23)
Translation (28) 15 (3) 16 - -
Balance at 31 December 2013 7,006 136 (3,061) (1) 18 (25) (994) 3,079 28 3,107
Balance at 31 December 2013 7,006 136 (3,061) (1) 18 (25) (994) 3,079 28 3,107
Loss for the period (58) (58) 19 (39)
Other comprehensive loss (16) (201) (217) (217)
Total comprehensive loss - - (58) - - (16) (201) (275) 19 (256)
Shares issued 35 35 35
Share-based payment for share awards
net of exercised 6 6 6
Dividends of subsidiaries - (21) (21)
Translation (10) 10 (1) 1 - - -
Balance at 31 December 2014 7,041 132 (3,109) (1) 17 (40) (1,195) 2,845 26 2,871
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 Year ended
Dec Sep Dec Dec Dec
2014 2014 2013 2014 2013
Reviewed Reviewed Reviewed Reviewed Audited
US Dollar million
Gold income
South Africa 355 410 428 1,527 1,810
Continental Africa 538 500 568 2,105 2,111
Australasia 183 197 192 785 441
Americas 345 311 335 1,270 1,425
1,420 1,419 1,523 5,687 5,787
Equity-accounted investments included above (142) (123) (105) (469) (290)
1,278 1,295 1,418 5,218 5,497
Gross profit (loss)
South Africa 44 76 134 216 510
Continental Africa 121 116 117 469 475
Australasia 19 24 30 125 (9)
Americas 73 76 125 309 516
Corporate and other 5 - 5 - -
262 292 410 1,119 1,492
Equity-accounted investments included above (40) (19) (6) (76) (47)
222 273 404 1,043 1,445
Capital expenditure
South Africa 79 66 112 264 451
Continental Africa 119 86 212 454 839
Australasia 28 13 35 91 285
Americas 134 93 116 394 410
Corporate and other 3 2 2 6 8
363 261 477 1,209 1,993
Equity-accounted investments included above (48) (38) (94) (191) (411)
316 222 383 1,018 1,582
Quarter ended Year ended
Dec Sep Dec Dec Dec
2014 2014 2013 2014 2013
oz (000)
Gold production
South Africa 300 314 339 1,223 1,302
Continental Africa 419 410 460 1,597 1,460
Australasia 157 152 169 620 342
Americas 280 251 262 996 1,001
1,156 1,128 1,229 4,436 4,105
As at As at As at
Dec Sep Dec
2014 2014 2013
Reviewed Reviewed Audited
US Dollar million
Total assets (1)
South Africa 2,124 2,166 2,325
Continental Africa 3,239 3,297 3,391
Australasia 906 978 1,108
Americas 2,409 2,371 2,203
Corporate and other 456 497 647
9,134 9,310 9,674
(1) In 2014, pre-tax impairments, derecognition of goodwill, tangible assets and intangible assets of USD10m were accounted for in
Continental Africa (2013 : USD3,029m in South Africa (USD311m), Continental Africa (USD1,776m) and the Americas (USD942m)).
Rounding of figures may result in computational discrepancies.
Notes
for the quarter and year ended 31 December 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 year ended 31 December 2014.
2. Revenue
Quarter ended Year ended
Dec Sep Dec Dec Dec
2014 2014 2013 2014 2013
Reviewed Reviewed Reviewed Reviewed Audited
US Dollar million
Gold income 1,278 1,295 1,418 5,218 5,497
By-products (note 3) 39 34 39 132 149
Dividends received - - - - 5
Royalties received (note 5) 1 1 1 4 18
Interest received 6 6 15 24 39
1,324 1,337 1,474 5,378 5,708
3. Cost of sales
Quarter ended Year ended
Dec Sep Dec Dec Dec
2014 2014 2013 2014 2013
Reviewed Reviewed Reviewed Reviewed Audited
US Dollar million
Cash operating costs 780 857 858 3,260 3,274
By-products revenue (note 2) (39) (34) (39) (132) (149)
741 823 819 3,128 3,125
Royalties 28 32 32 131 129
Other cash costs 8 9 10 33 43
Total cash costs 777 864 861 3,292 3,297
Retrenchment costs 9 5 16 24 69
Rehabilitation and other non-cash costs 47 8 (11) 94 18
Production costs 833 877 866 3,410 3,384
Amortisation of tangible assets 214 182 202 750 775
Amortisation of intangible assets 9 9 9 36 24
Total production costs 1,056 1,068 1,077 4,196 4,183
Inventory change 5 (15) (35) (6) (37)
1,061 1,052 1,042 4,190 4,146
4. Other operating expenses
Quarter ended Year ended
Dec Sep Dec Dec Dec
2014 2014 2013 2014 2013
Reviewed Reviewed Reviewed Reviewed Audited
US Dollar million
Pension and medical defined benefit provisions 1 2 (1) 6 14
Claims filed by former employees in respect of loss
of employment, work-related accident injuries and
diseases, governmental fiscal claims and care and
maintenance of old tailings operations 4 3 2 15 5
Other expenses 2 4 - 7 -
7 9 1 28 19
Rounding of figures may result in computational discrepancies.
5. Special items
Quarter ended Year ended
Dec Sep Dec Dec Dec
2014 2014 2013 2014 2013
Reviewed Reviewed Reviewed Reviewed Audited
US Dollar million
Net impairment and derecognition of goodwill, tangible assets and
intangible assets (note 9) 9 1 36 10 3,029
Impairment of other investments (note 9) 1 - 1 2 30
Net loss (profit) on disposal and derecognition of land, mineral
rights, tangible assets and exploration properties (note 9) 2 (2) - (25) (2)
Royalties received (note 2) (1) (1) (1) (4) (18)
Indirect tax expenses and legal claims 3 3 7 19 43
Inventory write-off due to fire at Geita - - - - 14
Insurance proceeds on Geita claim - - (13) - (13)
Legal fees and other costs related to contract termination and
settlement costs 13 7 16 30 19
Write-down of stockpiles and heap leach to net realisable value
and other stockpile adjustments 1 1 38 2 216
Write-down of consumable stores inventories 5 - - 5 -
Impairment of other receivables 1 - - 1 -
Retrenchment and related costs 148 37 4 210 24
Write-off of a loan - - - - 7
Transaction costs on the USD1.25bn bond and standby facility - - 2 - 61
Loss on sale of Navachab (note 14) - - - 2 -
Accelerated deferred loan fees paid on cancellation and
replacement of US and Australia revolving credit facilities - 8 - 8 -
182 54 90 260 3,410
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 year ended 31 December 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.
6. Finance costs and unwinding of obligations
Quarter ended Year ended
Dec Sep Dec Dec Dec
2014 2014 2013 2014 2013
Reviewed Reviewed Reviewed Reviewed Audited
US Dollar million
Finance costs 61 62 67 251 247
Unwinding of obligations, accretion of convertible bonds and
other discounts 7 7 8 27 49
67 69 75 278 296
7. Share of associates and joint ventures' profit (loss)
Quarter ended Year ended
Dec Sep Dec Dec Dec
2014 2014 2013 2014 2013
Reviewed Reviewed Reviewed Reviewed Audited
US Dollar million
Revenue 151 130 117 519 334
Operating costs, special items and other expenses (120) (107) (111) (523) (315)
Net interest received 1 2 1 6 4
Profit before taxation 32 25 7 2 23
Taxation (11) (6) (2) (22) (21)
Profit (loss) after taxation 21 19 5 (20) 2
Net reversal (impairment) of investments in associates and joint
ventures(1) 1 - (1) (5) (164)
22 19 4 (25) (162)
Net impairments recognised on the entity's investments in equity accounted associates and joint ventures consider quoted share prices,
their respective financial positions and anticipated declines in operating results of these entities.
(1) Includes a loan of USD20m recovered during the fourth quarter of 2014, which was impaired in 2013.
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, once 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.
The finalisation of the results of Rand Refinery for the years ended 30 September 2013 and 2014 confirmed the existence of the gold shortfall
position and resulted in Rand Refinery issuing a notice to the shareholders to draw down an amount of USD89m of the loan facility available.
AngloGold Ashanti's portion of the loan funding, including a pro-rata portion of DRD Gold Limited's funding commitment, amounted USD43m. The
total investment in Rand Refinery, including the loan facility provided, was tested for impairment, resulting in an impairment of the loan of USD21m
included in "net reversal (impairment) of investments in associates and joint ventures" above.
As a result, AngloGold Ashanti reviewed its previous estimates of its share of equity profits accounted for as part of its investment in Rand
Refinery, which was based on the unaudited management accounts of Rand Refinery, effectively reducing AngloGold Ashanti's equity investment
in Rand Refinery to nil.
8. Taxation
Quarter ended Year ended
Dec Sep Dec Dec Dec
2014 2014 2013 2014 2013
Reviewed Reviewed Reviewed Reviewed Audited
US Dollar million
South African taxation
Mining tax (10) 7 1 21 7
Non-mining tax 15 (7) - 5 1
Prior year (over) under provision (1) - (25) 4 (26)
Deferred taxation
Temporary differences (1) (1) 13 (20) (39)
Unrealised non-hedge derivatives and other commodity
contracts 1 8 8 4 25
Change in estimated deferred tax rate (24) - - (24) -
(20) 7 (3) (10) (32)
Foreign taxation
Normal taxation 24 46 96 152 160
Prior year over provision
Deferred taxation(1) - (5) - (17) (8)
Temporary differences 45 37 333 130 (453)
69 78 429 265 (301)
49 85 426 255 (333)
(1) Included in temporary differences under Foreign taxation in 2013, is a tax credit relating to impairments and disposal of tangible assets of USD499m and
write-down of inventories of USD68m.
9. Headline (loss) earnings
Quarter ended Year ended
Dec Sep Dec Dec Dec
2014 2014 2013 2014 2013
Reviewed Reviewed Reviewed Reviewed Audited
US Dollar million
The (loss) profit attributable to equity shareholders has been
adjusted by the following to arrive at headline earnings (loss):
(Loss) profit attributable to equity shareholders (58) 41 (305) (58) (2,230)
Net impairment and derecognition of goodwill, tangible assets
and intangible assets (note 5) 9 1 36 10 3,029
Net (profit) loss on disposal and derecognition of land, mineral
rights, tangible assets and exploration properties (note 5) 2 (2) - (25) (2)
Loss on sale of Navachab (note 14) - - - 2 -
Impairment of other investments (note 5) 1 - 1 2 30
Net (reversal) impairment of investments in associates and joint
ventures (22) - 1 (22) 164
Special items of associates and joint ventures - - 2 6 2
Taxation - current portion - - 1 6 -
Taxation - deferred portion (3) 4 (12) - (915)
(71) 44 (276) (79) 78
Headline (loss) earnings per ordinary share (cents) (1) (17) 11 (68) (19) 20
Diluted headline (loss) earnings per ordinary share (cents) (2) (17) 11 (68) (19) (62)
(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 Year ended
Dec Sep Dec Dec Dec
2014 2014 2013 2014 2013
Reviewed Reviewed Reviewed Reviewed Audited
Authorised number of shares:
Ordinary shares of 25 SA cents each 600,000,000 600,000,000 600,000,000 600,000,000 600,000,000
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 404,010,360 403,552,085 402,628,406 404,010,360 402,628,406
E ordinary shares in issue - 685,668 712,006 - 712,006
Total ordinary shares: 404,010,360 404,237,753 403,340,412 404,010,360 403,340,412
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 403,605,184 403,466,038 402,462,266 403,339,562 389,184,639
E ordinary shares 589,685 696,371 1,062,510 585,974 1,460,705
Fully vested options 3,122,215 2,047,889 1,477,629 3,803,514 1,979,920
Weighted average number of shares 407,317,084 406,210,298 405,002,405 407,729,050 392,625,264
Dilutive potential of share options - 2,215,555 - - -
Dilutive potential of convertible bonds - - - - 12,921,644
Diluted number of ordinary shares 407,317,084 408,425,853 405,002,405 407,729,050 405,546,908
11. Share capital and premium
As at
Dec Sep Dec
2014 2014 2013
Reviewed Reviewed Audited
US Dollar Million
Balance at beginning of period 7,074 7,074 6,821
Ordinary shares issued 29 25 259
E ordinary shares issued and cancelled (9) - (6)
Sub-total 7,094 7,099 7,074
Redeemable preference shares held within the group (53) (53) (53)
Ordinary shares held within the group - - (6)
E ordinary shares held within the group - (10) (9)
Balance at end of period 7,041 7,036 7,006
12. Exchange rates
Dec Sep Dec
2014 2014 2013
Unaudited Unaudited Unaudited
ZAR/USD average for the year to date 10.83 10.70 9.62
ZAR/USD average for the quarter 11.22 10.76 10.12
ZAR/USD closing 11.57 11.28 10.45
AUD/USD average for the year to date 1.11 1.09 1.03
AUD/USD average for the quarter 1.17 1.08 1.08
AUD/USD closing 1.22 1.14 1.12
BRL/USD average for the year to date 2.35 2.29 2.16
BRL/USD average for the quarter 2.54 2.27 2.27
BRL/USD closing 2.66 2.45 2.34
ARS/USD average for the year to date 8.12 7.99 5.48
ARS/USD average for the quarter 8.51 8.30 6.07
ARS/USD closing 8.55 8.43 6.52
Rounding of figures may result in computational discrepancies.
13. Capital commitments
Dec Sep Dec
2014 2014 2013
Reviewed Reviewed Audited
US Dollar Million
Orders placed and outstanding on capital contracts at the prevailing
rate of exchange (1) 178 290 437
(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
Dec Sep Dec
2014 2014 2013
Reviewed Reviewed Audited
Carrying amount 3,721 3,680 3,891
Fair value 3,606 3,684 3,704
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 Level2 Level3 Total
US Dollar million Dec 2014 Sep 2014 Dec 2013
Assets measured at fair value
Available-for-sale financial assets
Equity securities 47 - - 47 48 - - 48 47 - - 47
Liabilities measured at fair value
Financial liabilities at fair value through profit or
loss
USD1.25bn bonds 1,374 - - 1,374 1,410 - - 1,410 1,353 - - 1,353
Rounding of numbers may result in computational discrepancies.
16. Contingencies
AngloGold Ashanti's material contingent liabilities and assets at 31 December 2014 and 31 December 2013 are detailed
below:
Contingencies and guarantees
December December
2014 2013
Reviewed Audited
US Dollar million
Contingent liabilities
Groundwater pollution(1) - -
Deep groundwater pollution – Africa(2) - -
Litigation – Ghana(3)(4) 97 97
ODMWA litigation(5) 192 -
Other tax disputes – AngloGold Ashanti Brasil Mineração Ltda(6) 32 38
VAT disputes – Mineração Serra Grande S.A.(7) 15 16
Tax dispute - AngloGold Ashanti Colombia S.A.(8) 162 188
Tax dispute - Cerro Vanguardia S.A.(9) 53 63
Sales tax on gold deliveries – Mineração Serra Grande S.A.(10) - 101
Contingent assets
Indemnity – Kinross Gold Corporation(11) (9) (60)
Royalty – Tau Lekoa Gold Mine(12) - -
Royalty – Navachab(13) - -
Financial Guarantees
Oro Group (Pty) Limited(14) 9 10
551 453
(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 from mine residue stockpiles. Numerous scientific, technical
and legal studies have been undertaken to assist in determining the magnitude of the contamination and to find sustainable
remediation solutions. The group has instituted processes to reduce future potential seepage and it has been demonstrated
that Monitored Natural Attenuation (MNA) by the existing environment will contribute to improvements in some instances.
Furthermore, literature reviews, field trials and base line modelling techniques suggest, but 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) Litigation - On 11 October 2011, AngloGold Ashanti (Ghana) Limited (AGAG) terminated Mining and Building Contractors
Limited's (MBC) underground development agreement, construction on bulkheads agreement and diamond drilling
agreement at Obuasi mine. The Parties reached agreement on the terms of the separation and concluded a separation
agreement on 8 November 2012. On 23 July 2013 and 20 February 2014, AGAG was served with a writ issued by MBC
claiming a total of USD97m. AGAG filed a conditional entry of appearance and a motion of stay of proceedings pending
arbitration. On 5 May 2014, the court denied AGAG's application to submit the matter to arbitration. AGAG subsequently
appealed this decision to the Court of Appeal and further filed a Stay of Proceedings at the lower court which was granted on
11 June 2014. On 2 October 2014, AGAG was notified that the records had 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. The matter remains pending.
(4) 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 plaintiffs' alleged injuries include respiratory
infections, skin diseases and certain cancers. The plaintiffs have not filed their application for directions which was due by
31 October 2013. AGAG is allowing some time to pass prior to applying to have the matter struck out for want of
prosecution. On 24 February 2014, executive members of the PTP (AGAG) Smoke Effect Association (PASEA), sued AGAG
by themselves and on behalf of their members (undisclosed number) on grounds similar to those discussed above, as well as
economic hardships as a result of constant failure of their crops. To date, plaintiffs have failed to amend their writ and file
their 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 AGAG's obligation in either matter.
(5) 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 judgment 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.
AngloGold Ashanti, Anglo American South Africa, Gold Fields, Harmony Gold and Sibanye Gold announced in November 2014 that they have
formed an industry working group to address issues relating to compensation and medical care for OLD in the gold mining industry in
South Africa. The companies have begun to engage all stakeholders on these matters, including government, organised labour, other
mining companies and legal representatives of claimants who have filed legal suits against the companies. These legal proceedings
are being defended, and the status of the proceedings are set forth below. Essentially, the companies are seeking a comprehensive
solution which deals both with the legacy compensation issues and future legal frameworks, and which, whilst being fair to employees,
also ensures the future sustainability of companies in the industry.
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. On 4 September 2012, AngloGold
Ashanti delivered its notice of intention to defend this application.
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 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).
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. The parties in the class action met with the court and have tentatively agreed
on a timetable for the court process wherein the application to certify the class action will be heard in October 2015.
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 31 December 2014 closing rate. 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 31 December 2014 closing rate.
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 USD100 million as at the 31 December 2014
closing rate. 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 USD81 million as at the
31 December 2014 closing rate.
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.
(6) 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 USD18m (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 USD14m (2013: USD19m). Management is of the opinion that these taxes are
not payable.
(7) VAT disputes - Mineração Serra Grande S.A. (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 appeals against the
assessment. The company is now appealing the dismissal of the case. The assessment is approximately USD15m (2013:
USD16m).
(8) Tax dispute – In January 2013, 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 2010 and 2011 income tax returns. On 23 October 2013 AGAC received
the official assessments from the DIAN which established that an estimated additional tax of USD27m (2013:USD35m) will be payable if the
tax returns are amended. Penalties and interest for the additional taxes are expected to be USD135m (2013:USD153m), based on
Colombian tax law. The company believes that it has applied the tax legislation correctly. AGAC requested in December 2013 that
the DIAN reconsider its decision. In November 2014, DIAN affirmed its earlier ruling. AGAC has until mid-March 2015 to challenge
the DIAN's decision by filing a lawsuit before the Administrative Tribunal of Cundinamarca (trial court for tax litigation).
(9) Tax dispute - On 12 July 2013, Cerro Vanguardia S.A. received a notification from the Argentina Tax Authority (AFIP) requesting corrections
to the 2007, 2008 and 2009 income tax returns of about USD14m (2013: USD18m) relating to the non-deduction of tax losses previously claimed
on hedge contracts. The AFIP is of the view that the financial derivatives at issue should not have been accounted for as hedge contracts,
as hedge contract losses could only be offset against gains derived from the same kind of hedging contracts Penalties and interest on the
disputed amounts are estimated at a further USD39m (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 were filed on 8 September 2014.
Management is of the opinion that the taxes are not payable. The government responded to the latest submission by CVSA on 22 December 2014,
and continues to assert its position regarding the use of the financial derivatives. CVSA has until 9 March 2015 to respond
to the government's findings, and is preparing a response.
(10) Sales tax on gold deliveries – In 2006, 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. Although the State has not yet provided confirmation, 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 was further set off by an
indemnity from Kinross of USD6m.
(11) 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 7 and 10 above. In light of the settlements described in item 10 at 31 December
2014, the company has estimated that the maximum contingent asset is USD9m (2013: USD60m).
(12) 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 507,471oz
(2013: 413,246oz) produced have been received to date.
(13) Royalty – As a result of the sale of Navachab during the second quarter of 2014, 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.
(14) 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:
Dec 2014
US Dollar million
Recoverable value added tax 31
Appeal deposits 4
18. Borrowings
AngloGold Ashanti's borrowings are interest bearing.
19. Announcements
Appointment of Non-Executive Directors: On 27 November 2014, AngloGold Ashanti announced the appointment of Mr Albert
Garner and Ms Maria Richter to the Board as independent non-executive directors with effect from 1 January 2015.
Maiden resource for Nuevo Chaquiro Deposit: On 3 November 2014, AngloGold Ashanti announced the first Mineral Resource
for the Nuevo Chaquiro deposit in the Quebradona Project Area. The Quebradona Project is a Joint Venture between AGA
(88.5%) and B2Gold (11.5%). B2Gold is not participating in the exploration expenditure and its interest in the project is being
diluted. The maiden Inferred Mineral Resource for Nuevo Chaquiro is 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.
Appointment of new JSE Sponsor: On 3 November 2014, AngloGold Ashanti announced that the appointment of UBS South
Africa (Pty) Ltd as sponsor to Company ended by mutual consent with effect from 31 October 2014 and Deutsche Securities (SA)
Proprietary Limited appointed sponsor to the Company with effect from 1 November 2014.
By order of the Board
S M PITYANA S VENKATAKRISHNAN
Chairman Chief Executive Officer
19 February 2015
Non-GAAP disclosure
From time to time AngloGold Ashanti Limited may publicly disclose certain "Non-GAAP" financial measures in the course of its financial presentations,
earnings releases, earnings conference calls and otherwise.
The group uses certain Non-GAAP performance measures and ratios in managing the business and may provide users of this financial information with
additional meaningful comparisons between current results and results in prior operating periods. Non-GAAP financial measures should be viewed in
addition to, and not as an alternative to, the reported operating results or any other measure of performance prepared in accordance with IFRS. In
addition, the presentation of these measures may not be comparable to similarly titled measures that other companies use.
A Adjusted headline (loss) earnings
Quarter ended Year ended
Dec Sep Dec Dec Dec
2014 2014 2013 2014 2013
Unaudited Unaudited Unaudited Unaudited Unaudited
US Dollar million
Headline (loss) earnings (note 9) (71) 44 (276) (79) 78
Gain on unrealised non-hedge derivatives and
other commodity contracts (5) (30) (28) (15) (94)
Deferred tax on unrealised non-hedge derivatives and
other commodity contracts (note 8) 1 8 8 4 25
Derecognition of deferred tax assets - - 330 - 330
Fair value adjustment on USD1.25bn bonds (63) (20) 12 17 58
Fair value adjustment on option component of convertible bonds - - - - (9)
Fair value adjustment on mandatory convertible bonds - - - - 211
Provision for losses in associate and impairment of loan to associate 21 - - 72 -
Adjusted headline (loss) earnings (117) 2 45 (1) 599
Adjusted headline (loss) earnings per ordinary share (cents)(1) (29) 0 11 0 153
(1) Calculated on the basic weighted average number of ordinary shares.
B Adjusted gross profit
Quarter ended Year ended
Dec Sep Dec Dec Dec
2014 2014 2013 2014 2013
Unaudited Unaudited Unaudited Unaudited Unaudited
US Dollar million
Reconciliation of gross profit to adjusted gross profit:
Gross profit 222 273 404 1,043 1,445
Gain on unrealised non-hedge derivatives and
other commodity contracts (5) (30) (28) (15) (94)
Adjusted gross profit 217 243 376 1,028 1,351
C Price received
Quarter ended Year ended
Dec Sep Dec Dec Dec
2014 2014 2013 2014 2013
Unaudited Unaudited Unaudited Unaudited Unaudited
US Dollar million/Imperial
Gold income (note 2) 1,278 1,295 1,418 5,218 5,497
Adjusted for non-controlling interests (18) (16) (15) (76) (77)
1,260 1,279 1,403 5,142 5,420
Realised loss on other commodity contracts 5 6 6 21 26
Associates and joint ventures' share of gold income including realised
non-hedge derivatives 142 123 105 469 290
Attributable gold income including realised non-hedge
derivatives 1,407 1,409 1,514 5,632 5,736
Attributable gold sold - oz (000) 1,171 1,099 1,191 4,454 4,093
Price received per unit - USD/oz 1,202 1,281 1,271 1,264 1,401
Rounding of figures may result in computational discrepancies.
D All-in sustaining costs and All-in costs 1
Quarter ended Year ended
Dec Sep Dec Dec Dec
2014 2014 2013 2014 2013
Unaudited Unaudited Unaudited Unaudited Unaudited
US Dollar million/Imperial
Cost of sales (note 3) 1,061 1,052 1,042 4,190 4,146
Amortisation of tangible and intangible assets (note 3) (223) (191) (211) (786) (799)
Adjusted for decommissioning amortisation 3 3 2 10 6
Corporate administration and marketing related to current operations 22 22 36 88 199
Associates and joint ventures' share of costs 76 77 90 294 234
Inventory writedown to net realisable value and other stockpile
adjustments 9 1 38 11 216
Sustaining exploration and study costs 18 14 16 49 94
Total sustaining capex 259 177 253 814 999
All-in sustaining costs 1,224 1,156 1,265 4,670 5,095
Adjusted for non-controlling interests and non -gold producing companies (25) (14) (16) (77) (71)
All-in sustaining costs adjusted for non-controlling interests and
non-gold producing companies 1,199 1,142 1,249 4,593 5,024
Adjusted for stockpile write-offs (10) (3) (38) (22) (216)
All-in sustaining costs adjusted for non-controlling interests, non-gold
producing companies and stockpile write-offs 1,190 1,139 1,211 4,571 4,808
All-in sustaining costs 1,224 1,156 1,265 4,670 5,095
Non-sustaining project capital expenditure 104 84 224 394 994
Technology improvements 7 3 7 19 14
Non-sustaining exploration and study costs 25 23 28 91 175
Corporate and social responsibility costs not related to current operations 6 6 1 24 21
All-in costs 1,366 1,271 1,525 5,198 6,299
Adjusted for non-controlling interests and non -gold producing companies (19) (11) (16) (62) (81)
All-in costs adjusted for non-controlling interests and
non-gold producing companies 1,347 1,260 1,509 5,136 6,218
Adjusted for stockpile write-offs (10) (3) (38) (22) (216)
All-in costs adjusted for non-controlling interests, non-gold producing
companies and stockpile write-offs 1,338 1,257 1,471 5,114 6,002
Gold sold - oz (000) 1,171 1,099 1,191 4,454 4,093
All-in sustaining cost (excluding stockpile write-offs) per unit - USD/oz 1,017 1,036 1,015 1,026 1,174
All-in cost per unit (excluding stockpile write-offs) - USD/oz 1,143 1,144 1,233 1,148 1,466
(1) Refer to note J for Summary of Operations by Mine
E Total costs(2)
Total cash costs (note 3) 777 864 861 3,292 3,297
Adjusted for non-controlling interests, non-gold producing companies and other (20) (16) (20) (94) (110)
Associates and joint ventures' share of total cash costs 78 76 79 291 219
Total cash costs adjusted for non-controlling interests
and non-gold producing companies 835 924 920 3,489 3,406
Retrenchment costs (note 3) 9 5 16 24 69
Rehabilitation and other non-cash costs (note 3) 47 8 (11) 94 18
Amortisation of tangible assets (note 3) 214 182 202 750 775
Amortisation of intangible assets (note 3) 9 9 9 36 24
Adjusted for non-controlling interests and non-gold producing companies (9) 2 17 (4) 14
Equity-accounted associates and joint ventures' share of production costs 23 29 17 104 23
Total production costs adjusted for non-controlling
interests and non-gold producing companies 1,128 1,158 1,170 4,493 4,329
Gold produced - oz (000) 1,154 1,126 1,229 4,432 4,105
Total cash cost per unit - USD/oz 724 820 748 787 830
Total production cost per unit - USD/oz 978 1,029 952 1,014 1,054
(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 Year ended
Dec Sep Dec Dec Dec
2014 2014 2013 2014 2013
Unaudited Unaudited Unaudited Unaudited Unaudited
US Dollar million
(Loss) profit on ordinary activities before taxation (6) 129 171 216 (2,533)
Add back:
Finance costs and unwinding of obligations 67 69 75 278 296
Interest received (6) (6) (15) (24) (39)
Amortisation of tangible and intangible assets (note 3) 223 191 211 786 799
Adjustments:
Dividend received (note 2) - - - - (5)
Exchange (gain) loss (5) (4) (4) 7 (14)
Fair value adjustment on the mandatory convertible bonds - - - - (356)
Fair value adjustment on option component of convertible bonds - - - - (9)
Fair value adjustment on USD1.25bn bonds (63) (20) 12 17 58
Net impairment and derecognition of goodwill, tangible and intangible
assets (note 5) 9 1 36 10 3,029
Impairment of other investments (note 5) 1 - 1 2 30
Write-down of stockpiles and heap leach to net realisable value and other
stockpile adjustments (note 5) 1 1 38 2 216
Write-off of loan (note 5) - - - - 7
Retrenchments at mining operations (note 3) 9 5 16 24 69
Retrenchments at Obuasi 145 34 - 210 -
Net loss (profit) on disposal and derecognition of assets (note 5) 2 (2) - (25) (2)
Loss on sale of Navachab (note 5) - - - 2 -
Gain on unrealised non-hedge derivatives and other commodity contracts (5) (30) (28) (15) (94)
Associates and joint ventures' exceptional expense (22) - 1 (16) 164
Associates and joint ventures' - adjustments for amortisation, interest,
taxation and other. 57 32 29 191 51
Adjusted EBITDA 407 400 544 1,665 1,667
(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) 407 400 544 1,665 1,667
Finance costs (note 6) 61 62 67 251 247
Capitalised finance costs - - - 1 5
61 62 67 252 252
Interest cover - times 7 6 8 7 7
H Net asset value - cents per share
As at As at As at
Dec Sep Dec
2014 2014 2013
Unaudited Unaudited Unaudited
US Dollar million
Total equity 2,871 3,010 3,107
Number of ordinary shares in issue - million (note 10) 404 404 403
Net asset value - cents per share 711 745 770
Total equity 2,871 3,010 3,107
Intangible assets (225) (247) (267)
2,646 2,763 2,840
Number of ordinary shares in issue - million (note 10) 404 404 403
Net tangible asset value - cents per share 655 684 704
I Net debt
Borrowings - long-term portion 3,498 3,521 3,633
Borrowings - short-term portion 223 159 258
Bank overdraft - 13 20
Total borrowings 3,721 3,693 3,911
Corporate office lease (22) (22) (25)
Unamortised portion of the convertible and rated bonds 28 29 2
Fair value adjustment on USD1.25bn bonds (75) (138) (58)
Cash restricted for use (51) (53) (77)
Cash and cash equivalents (468) (557) (648)
Net debt excluding mandatory convertible bonds 3,133 2,952 3,105
Rounding of figures may result in computational discrepancies.
J Summary of Operations by Mine
For the three months ended 31 December 2014
Operations in South Africa
(in USD millions, except as otherwise noted)
Total
Vaal West South South
Great Moab River Tau Wits Surface Africa Africa
Noligwa Kopanang Khotsong Operations Mponeng Tona Operations operations other (Operations) Corporate
All-in sustaining costs
Cost of sales per financial statements 23 46 58 127 71 65 136 52 1 316 (3)
Amortisation of tangible and intangible assets (2) (9) (14) (24) (16) (13) (29) (5) 1 (58) (1)
Adjusted for decommissioning amortisation - - - - - - - - - - (1)
Corporate administration and marketing
related to current operations - - - - - - - - - - 22
Total sustaining capital expenditure 2 7 15 25 16 11 27 15 4 70 2
All-in sustaining costs 23 44 59 128 71 63 134 62 6 328 19
All-in sustaining costs adjusted for non-
controlling interests and non-gold producing
companies 23 44 59 128 71 63 134 62 6 328 19
Adjusted for stockpile write-offs - - - - - - - - - - (1)
All-in sustaining costs adjusted for non-
controlling interests, non-gold producing
companies and stockpile write-offs 23 44 59 128 71 63 134 62 6 328 18
All-in sustaining costs 23 44 59 128 71 63 134 62 6 328 19
Non-sustaining Project capex - - - - 9 - 9 - - 9 1
Technology improvements - - - - - - - - 7 7 -
Non-sustaining exploration and study costs - - - - - - - - - - 1
All-in costs 23 44 59 128 80 63 143 62 13 344 21
All-in costs adjusted for non-controlling
interests and non-gold producing companies 23 44 59 128 80 63 143 62 13 344 21
Adjusted for stockpile write-offs - - - - - - - - - - (1)
All-in costs adjusted for non-controlling
interests, non-gold producing companies and
stockpile write-offs 23 44 59 128 80 63 143 62 13 344 20
Gold sold - oz (000)(3) 22 34 68 124 56 63 119 56 1 300 -
All-in sustaining cost (excluding stockpile
write-offs) per unit - USD/oz(4) 1,027 1,324 888 1,031 1,275 1,000 1,129 1,116 - 1,097 -
All-in cost per unit (excluding stockpile write-
offs) - USD/oz(4) 1,027 1,324 893 1,034 1,436 1,000 1,205 1,116 - 1,151 -
(1) Adjusting for non-controlling interest of items included in calculation, to disclose the attributable portions only. Other consists of heap
leach inventory.
(2) Attributable costs and related expenses of associates and equity accounted joint ventures are included in the calculation of total cash
costs per ounce and total production costs per ounce.
(3) Attributable portion.
(4) In addition to the operational performances of the mines, all-in sustaining cost per ounce, all-in cost per ounce, total cash costs per
ounce and total production costs per ounce are affected by fluctuations in the currency exchange rate. AngloGold Ashanti reports all-
in sustaining cost per ounce and all-in cost per ounce calculated to the nearest US dollar amount and gold sold in ounces. AngloGold
Ashanti reports total cash costs per ounce and total production costs per ounce calculated to the nearest US dollar amount and gold
produced in ounces.
(5) Corporate includes non-gold producing subsidiaries.
(6) Total cash costs per ounce calculation includes heap-leach inventory change.
For the three months ended 31 December 2014
Operations in South Africa
(in USD millions, except as otherwise noted)
Total
Vaal West South South
Great Moab River Tau Wits Surface Africa Africa
Noligwa Kopanang Khotsong Operations Mponeng Tona Operations operations other (Operations) Corporate(5)
Total cash costs
Total cash costs per financial statements 20 34 42 96 53 50 103 49 - 248 (5)
Adjusted for non-controlling interests, non-
gold producing companies and other(1) - - - - - - - - - - 2
Total cash costs adjusted for non-
controlling interests and non-gold producing
companies 20 34 42 96 53 50 103 49 - 248 (3)
Retrenchment costs 1 2 2 5 1 1 2 - - 7 -
Rehabilitation and other non-cash costs - 1 1 3 1 1 3 (2) 1 3 (1)
Amortisation of tangible assets 2 8 12 22 15 12 27 4 - 53 1
Amortisation of intangible assets - 1 1 2 1 1 2 1 - 5 -
Total production costs adjusted for non-
controlling interests and non-gold producing
companies 23 46 58 128 71 65 137 52 1 316 (2)
Gold produced - oz (000)(3) 22 33 68 124 56 63 119 56 1 300 -
Total cash costs per unit - USD/oz(4) 894 1,014 615 773 946 792 864 883 - 830 -
Total production costs per unit - USD/oz(4) 1,019 1,375 857 1,026 1,276 1,033 1,147 926 - 1,056 -
For the three months ended 31 December 2014
Operations in DRC, Ghana, Guinea, Mali, Namibia and Tanzania
(in USD millions, except as otherwise noted)
DRC GHANA GUINEA MALI NAMIBIA TANZANIA Continent TOTAL
Idua- Nava- Africa CONTINENTAL
Kibali priem Obuasi Siguiri Morila Sadiola Yatela chab Geita Other AFRICA
All-in sustaining costs
Cost of sales per financial statements - 48 73 86 - - - - 106 1 314
Amortisation of tangible and intangible
assets - (6) (6) (9) - - - - (43) (1) (65)
Adjusted for decommissioning amortisation - - - 1 - - - - - 1 2
Associates and equity accounted joint
ventures' share of costs(2) 42 - - - 13 19 1 - - 1 76
Inventory writedown to net realisable value
and other stockpile adjustments - - - - - - 8 - - - 8
Sustaining exploration and study costs - - 10 1 - - - - 1 - 12
Total sustaining capital expenditure 1 9 6 9 1 3 - - 42 (2) 69
All-in sustaining costs 43 51 83 88 14 22 9 - 106 - 416
Adjusted for non-controlling interests and
non -gold producing companies(1) - - - (13) - - - - - (0) (13)
All-in sustaining costs adjusted for non-
controlling interests and non-gold producing
companies 43 51 83 75 14 22 9 - 106 (0) 403
Adjusted for stockpile write-offs - - - - - - (8) - - - (8)
All-in sustaining costs adjusted for non-
controlling interests, non-gold producing
companies and stockpile write-offs 43 51 83 75 14 22 1 - 106 (0) 395
All-in sustaining costs 43 51 83 88 14 22 9 - 106 - 416
Non-sustaining Project capex 44 - 6 - - - - - - - 50
Non-sustaining exploration and study costs - - - 1 - - - - - - 1
All-in costs 87 51 89 89 14 22 9 - 106 - 467
Adjusted for non-controlling interests and
non -gold producing companies(1) - - - (13) - - - - - - (13)
All-in costs adjusted for non-controlling
interests and non-gold producing companies 87 51 89 76 14 22 9 - 106 - 454
Adjusted for stockpile write-offs - - - - - - (8) - - - (8)
All-in costs adjusted for non-controlling
interests, non-gold producing companies
and stockpile write-offs 87 51 89 76 14 22 1 - 106 - 446
Gold sold - oz (000)(3) 81 41 57 76 15 21 3 - 142 - 435
All-in sustaining cost (excluding stockpile
write-offs) per unit - USD/oz(4) 532 1,248 1,440 973 37 1,049 414 - 751 - 907
All-in cost per unit (excluding stockpile
write-offs) - USD/oz(4) 1,080 1,248 1,550 981 37 1,049 414 - 751 - 1,024
For the three months ended 31 December 2014
Operations in DRC, Ghana, Guinea, Mali, Namibia and Tanzania
(in USD millions, except as otherwise noted)
DRC GHANA GUINEA MALI NAMIBIA TANZANIA Continent TOTAL
Idua- Nava- Africa CONTINENTAL
Kibali priem Obuasi Siguiri Morila Sadiola Yatela chab Geita Other AFRICA
Total cash costs
Total cash costs per financial statements - 39 48 71 - - - - 62 - 220
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) 44 - - - 14 20 1 - - (1) 78
Total cash costs adjusted for non-
controlling interests and non-gold
producing companies 44 39 48 60 14 20 1 - 62 (1) 287
Rehabilitation and other non-cash costs - 3 12 2 - - - - 2 - 19
Amortisation of tangible assets - 6 6 9 - - - - 43 - 64
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) 17 - - - 1 5 - - - - 23
Total production costs adjusted for non-
controlling interests and non-gold
producing companies 61 48 66 69 15 25 1 - 107 - 392
Gold produced - oz (000)(3) 80 40 48 68 15 21 3 - 144 - 419
Total cash costs per unit - USD/oz(4) 546 976 999 884 973 942 220 - 429 - 687
Total production costs per unit - USD/oz(4) 756 1,189 1,362 1,021 1,027 1,201 329 - 744 - 939
For the three months ended 31 December 2014
Operations in Australia, United States of America, Argentina and Brazil
(in USD millions, except as otherwise noted)
UNITED
STATES OF
AMERICA ARGENTINA AngloGold
AUSTRALIA TOTAL Cripple Cerro Ashanti BRAZIL
Sunrise Tropi- Australia AUSTR- Creek & Vangu- Miner- Serra Americas TOTAL
Dam cana other ALIA Victor ardia acao Grande Other AMERICAS
All-in sustaining costs
Cost of sales per financial statements 81 79 3 163 62 66 98 41 4 271
Amortisation of tangible and intangible assets (14) (27) (1) (42) (1) (9) (30) (16) (1) (57)
Adjusted for decommissioning amortisation - 1 - 1 - - - - 1 1
Inventory writedown to net realisable value
and other stockpile adjustments - - - - - - 1 - - 1
Sustaining exploration and study costs - 1 1 2 1 - 2 - 1 4
Total sustaining capital expenditure 5 22 1 28 7 23 45 13 2 90
All-in sustaining costs 72 76 4 152 69 80 116 38 7 310
Adjusted for non-controlling interests and non -
gold producing companies - - - - - (6) - - (6) (12)
All-in sustaining costs adjusted for non-
controlling interests and non-gold producing
companies 72 76 4 152 69 74 116 38 1 298
Adjusted for stockpile write-offs - - - - - - (1) - - (1)
All-in sustaining costs adjusted for non-
controlling interests, non-gold producing
companies and stockpile write-offs 72 76 4 152 69 74 115 38 1 297
All-in sustaining costs 72 76 4 152 69 80 116 38 7 310
Non-sustaining Project capex - - - - 42 - - - 2 44
Non-sustaining exploration and study costs - - 2 2 - - - - 21 21
Corporate and social responsibility costs not
related to current operations - - - - - - 4 1 1 6
All-in costs 72 76 6 154 111 80 120 39 31 381
Adjusted for non-controlling interests and non -
gold producing companies(1) - - - - - (6) - - - (6)
All-in costs adjusted for non-controlling
interests and non-gold producing companies 72 76 6 154 111 74 120 39 31 375
Adjusted for stockpile write-offs - - - - - - (1) - - (1)
All-in costs adjusted for non-controlling
interests, non-gold producing companies and
stockpile write-offs 72 76 6 154 111 74 119 39 31 374
Gold sold - oz (000)(3) 60 92 - 152 55 71 119 40 - 285
All-in sustaining cost (excluding stockpile
write-offs) per unit - USD/oz(4) 1,193 824 - 995 1,261 1,051 970 947 - 1,042
All-in cost per unit (excluding stockpile write -
offs) - USD/oz(4) 1,193 824 - 1,006 2,030 1,051 1,010 973 - 1,314
For the three months ended 31 December 2014
Operations in Australia, United States of America, Argentina and Brazil
(in USD millions, except as otherwise noted)
UNITED
STATES OF BRAZIL
AMERICA ARGENTINA AngloGold
AUSTRALIA TOTAL Cripple Cerro Ashanti
Sunrise Tropi- Australia AUSTR- Creek & Vangu- Miner- Serra Americas TOTAL
Dam cana other ALIA Victor ardia acao Grande Other AMERICAS
Total cash costs
Total cash costs per financial statements 66 46 2 114 55 54 68 24 (1) 200
Adjusted for non-controlling interests, non-gold
producing companies and other(1) - - - - (7) (4) - - - (11)
Total cash costs adjusted for non-controlling
interests and non-gold producing companies 66 46 2 114 48 50 68 24 (1) 189
Retrenchment costs - - - - - 2 1 - (1) 2
Rehabilitation and other non-cash costs 2 5 - 7 15 (1) (1) - 5 18
Amortisation of tangible assets 14 27 1 42 1 9 28 16 - 54
Amortisation of intangible assets - - - - - - 2 - 1 3
Adjusted for non-controlling interests, non-gold
producing companies(1) - - - (2) (1) - - (5) (8)
Total production costs adjusted for non-
controlling interests and non-gold producing
companies 82 78 3 163 62 59 98 40 (1) 258
Gold produced - oz (000)(3) 61 96 - 157 54 64 121 42 - 280
Total cash costs per unit - USD/oz(4) 1,083 482 - 729 895(6) 780 565 570 - 677
Total production costs per unit - USD/oz(4) 1,344 815 - 1,043 1,158 918 812 958 - 924
For the three months ended 30 September 2014
Operations in South Africa
(in USD millions, except as otherwise noted)
Total
Vaal West South South
Great Moab River Tau Wits Surface Africa Africa Corpo-
Noligwa Kopanang Khotsong Operations Mponeng Tona Operations operations other (Operations) rate
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 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 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 write-
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)
Total
Vaal West South South
Great Moab River Tau Wits Surface Africa Africa Corpo-
Noligwa Kopanang Khotsong Operations Mponeng Tona Operations operations other (Operations) rate(5)
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 no
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 production 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 Continent TOTAL
Idua- Nava- Africa CONTINENTAL
Kibali priem Obuasi Siguiri Morila Sadiola Yatela chab Geita 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) - - - - - - (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 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 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 Continent TOTAL
Idua- Nava- Africa CONTINENTAL
Kibali priem Obuasi Siguiri Morila Sadiola Yatela chab Geita 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
gold producing companies(1) - - - (1) - - - - - - (1)
Associates and equity accounted
ventures' share of total cash costs(2) 18 - - - 3 7 - - - - 28
Total production 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)
UNITED
STATES OF BRAZIL
AMERICA ARGENTINA AngloGold
AUSTRALIA TOTAL Cripple Cerro Ashanti
Sunrise Tropi- Australia AUSTR- Creek & Vangu- Miner- Serra Americas TOTAL
Dam cana other ALIA Victor ardia acao Grande Other AMERICAS
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 - - - - - (4) - - - (4)
All-in 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) 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)
UNITED
STATES OF BRAZIL
AMERICA ARGENTINA AngloGold
AUSTRALIA TOTAL Cripple Cerro Ashanti
Sunrise Tropi- Australia AUSTR- Creek & Vangu- Miner- Serra Americas TOTAL
Dam cana other ALIA Victor ardia acao Grande Other AMERICAS
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 production 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 31 December 2013
Operations in South Africa
(in USD millions, except as otherwise noted)
Total
Vaal West South South
Great Moab River Tau Wits Surface Africa Africa Corpo-
Noligwa Kopanang Khotsong Operations Mponeng Tona Operations operations other (Operations) rate
All-in sustaining costs
Cost of sales per financial statements 24 49 56 129 82 50 132 61 - 322 (5)
Amortisation of tangible and intangible assets (2) (10) (12) (24) (19) (13) (32) (6) - (62) (2)
Corporate administration and marketing
related to current operations - - - - - - - - 2 2 31
Inventory writedown to net realisable value
and other stockpile adjustments - - - - - - - - - - (2)
Total sustaining capital expenditure 4 12 16 32 26 16 42 6 - 80 3
All-in sustaining costs 26 51 60 137 89 53 142 61 2 342 25
All-in sustaining costs adjusted for non-
controlling interests, non-gold producing
companies and stockpile write-offs 26 51 60 137 89 53 142 61 2 342 27
All-in sustaining costs 26 51 60 137 89 53 142 61 2 342 25
Non-sustaining Project capex - 1 2 3 17 - 17 12 (1) 31 -
Technology improvements - - - - - - - - 7 7 -
Non-sustaining exploration and study costs - - - - - - - - - - (4)
Corporate and social responsibility costs not
related to current operations - - - - - - - - - - (2)
All-in costs 26 52 62 140 106 53 159 73 8 380 19
Adjusted for non-controlling interests and non
-gold producing companies(1) - - - - - - - - - - 1
All-in costs adjusted for non-controlling
interests, non-gold producing companies and
stockpile write-offs 26 52 62 140 106 53 159 73 8 380 22
Gold sold - oz (000)(3) 20 39 67 127 93 62 154 59 - 340 -
All-in sustaining cost (excluding stockpile
write-offs) per unit - USD/oz(4) 1,294 1,296 890 1,080 963 852 919 1,039 - 1,005 -
All-in cost per unit (excluding stockpile write-
offs) - USD/oz (4) 1,294 1,319 915 1,100 1,148 853 1,030 1,233 - 1,117 -
(1) Adjusting for non-controlling interest of items included in calculation, to disclose the attributable portions only. Other consists of
heap leach inventory.
(2) Attributable costs and related expenses of associates and equity accounted joint ventures are included in the calculation of total
cash costs per ounce and total production costs per ounce.
(3) Attributable portion.
(4) In addition to the operational performances of the mines, all-in sustaining cost per ounce, all-in cost per ounce, total cash costs per
ounce and total production costs per ounce are affected by fluctuations in the currency exchange rate. AngloGold Ashanti reports
all-in sustaining cost per ounce and all-in cost per ounce calculated to the nearest US dollar amount and gold sold in ounces.
AngloGold Ashanti reports total cash costs per ounce and total production costs per ounce calculated to the nearest US dollar
amount and gold produced in ounces.
(5) Corporate includes non-gold producing subsidiaries.
(6) Total cash costs per ounce calculation includes heap-leach inventory change.
For the three months ended 31 December 2013
Operations in South Africa
(in USD millions, except as otherwise noted)
Total
Vaal West South South
Great Moab River Tau Wits Surface Africa Africa Corpo-
Noligwa Kopanang Khotsong Operations Mponeng Tona Operations operations other (Operations) rate(5)
Total cash costs
Total cash costs per financial statements 20 36 40 96 61 50 111 53 - 260 (8)
Adjusted for non-controlling interests, non-
gold producing companies and other(1) - - - - - - - - - - 8
Associates and equity accounted join
ventures' share of total cash costs(2) - - - - - - - - - - -
Total cash costs adjusted for non-
controlling interests and non-gold producing
companies 20 36 40 96 61 50 111 53 - 260 -
Retrenchment costs 1 2 1 4 2 - 2 - - 6 (1)
Rehabilitation and other non-cash costs 1 2 3 6 - (13) (13) 1 (2) (8) -
Amortisation of tangible assets 2 9 11 22 18 12 30 6 - 58 1
Amortisation of intangible assets - 1 1 2 2 1 3 - - 5 1
Adjusted for non-controlling interests, non-
gold producing companies(1) - - - - - - - - - - 1
Total production costs adjusted for no
controlling interests and non-gold producing
companies 24 50 56 130 83 50 133 60 (2) 321 2
Gold produced - oz (000)(3) 20 39 67 127 93 62 154 58 - 339 -
Total cash costs per unit - USD/oz(4) 1,032 910 596 762 656 809 717 915 - 767 -
Total production costs per unit - USD/oz(4) 1,198 1,239 835 1,017 885 809 855 1,035 - 946 -
For the three months ended 31 December 2013
Operations in DRC, Ghana, Guinea, Mali, Namibia and Tanzania
(in USD millions, except as otherwise noted)
DRC GHANA GUINEA MALI NAMIBIA TANZANIA Continent TOTAL
Idua- Nava- Africa CONTINENTAL
Kibali priem Obuasi Siguiri Morila Sadiola Yatela chab Geita Other AFRICA
All-in sustaining costs
Cost of sales per financial statements - 72 94 76 - - - 8 98 5 353
Amortisation of tangible and intangible assets - (8) (2) (8) - - - - (33) - (51)
Adjusted for decommissioning amortisation - - - 1 - - - - - 1 2
Corporate administration and marketing
related to current operations - - - - - - - - - (2) (2)
Associates and equity accounted joint
ventures' share of costs(2) 19 - - - 11 41 18 - - 1 90
Inventory writedown to net realisable value
and other stockpile adjustments - - - - - 17 - - 23 - 40
Sustaining exploration and study costs - - - 5 - 1 - - 1 - 7
Total sustaining capital expenditure - 6 37 10 6 (1) - 1 50 - 109
All-in sustaining costs 19 70 129 84 17 58 18 9 139 5 548
Adjusted for non-controlling interests and non
-gold producing companies(1) - - - (13) - - - - - 1 (12)
All-in sustaining costs adjusted for non-
controlling interests and non-gold producing
companies 19 70 129 71 17 58 18 9 139 6 536
Adjusted for stockpile write-offs - - - - - (17) - - (23) - (40)
All-in sustaining costs adjusted for non-
controlling interests, non-gold producing
companies and stockpile write-offs 19 70 129 71 17 41 18 9 116 6 496
All-in sustaining costs 19 70 129 84 17 58 18 9 139 5 548
Non-sustaining Project capex 66 1 17 - - 22 - - (1) (2) 103
Non-sustaining exploration and study costs - - - 2 - - - - - 3 5
All-in costs 85 71 146 86 17 80 18 9 138 6 656
Adjusted for non-controlling interests and non
-gold producing companies(1) - - - (13) - - - - - (0) (13)
All-in costs adjusted for non-controlling
interests and non-gold producing companies 85 71 146 73 17 80 18 9 138 6 643
Adjusted for stockpile write-offs - - - - - (17) - - (23) - (40)
All-in costs adjusted for non-controlling
interests, non-gold producing companies and
stockpile write-offs 85 71 146 73 17 63 18 9 115 6 603
Gold sold - oz (000)(3) 40 62 62 64 12 24 8 17 147 - 437
All-in sustaining cost (excluding stockpile
write-offs) per unit - USD/oz(4) 469 1,153 2,069 1,116 1,434 1,639 2,226 526 784 - 1,129
All-in cost per unit (excluding stockpile write-
offs) - USD/oz(4) 2,149 1,167 2,350 1,144 1,434 2,521 2,268 526 780 - 1,376
For the three months ended 31 December 2013
Operations in DRC, Ghana, Guinea, Mali, Namibia and Tanzania
(in USD millions, except as otherwise noted)
DRC GHANA GUINEA MALI NAMIBIA TANZANIA Continent TOTAL
Idua- Nava- Africa CONTINENTAL
Kibali priem Obuasi Siguiri Morila Sadiola Yatela chab Geita Other AFRICA
Total cash costs
Total cash costs per financial statements - 65 86 75 - - - 9 83 - 318
Adjusted for non-controlling interests, no
gold producing companies and other(1) - - - (11) - - - - - - (11)
Associates and equity accounted joint
ventures' share of total cash costs(2) 19 - - - 10 36 15 - - (1) 79
Total cash costs adjusted for non-controlling
interests and non-gold producing companies 19 65 86 64 10 36 15 9 83 (1) 386
Retrenchment costs - 5 1 - - - - - - 3 9
Rehabilitation and other non-cash costs - 6 6 3 - - - (1) (1) 1 14
Amortisation of tangible assets - 7 2 8 - - - - 33 - 50
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) 9 - - - 2 4 3 - - (1) 17
Total production costs adjusted for non-
controlling interests and non-gold producing
companies 28 83 95 73 12 40 18 8 115 3 475
Gold produced - oz (000)(3) 40 67 63 75 12 24 8 18 154 - 460
Total cash costs per unit - USD/oz(4) 471 966 1,354 844 853 1,506 1,923 524 543 - 839
Total production costs per unit - USD/oz(4) 694 1,240 1,492 967 982 1,673 2,255 485 755 - 1,034
For the three months ended 31 December 2013
Operations in Australia, United States of America, Argentina and Brazil
(in USD millions, except as otherwise noted)
UNITED
STATES OF BRAZIL
AMERICA ARGENTINA AngloGold
AUSTRALIA TOTAL Cripple Cerro Ashanti
Sunrise Tropi- Australia AUSTR- Creek & Vangu- Miner- Serra Americas TOTAL
Dam cana other ALIA Victor ardia acao Grand Other AMERICAS
All-in sustaining costs
Cost of sales per financial statements 97 64 1 162 40 46 91 32 1 210
Amortisation of tangible and intangible assets (27) (27) (2) (56) - (7) (22) (10) (1) (40)
Corporate administration and marketing
related to current operations - - - - 3 - 2 - - 5
Sustaining exploration and study costs - - 2 2 1 - 4 2 - 7
Total sustaining capital expenditure 6 - 1 7 8 11 37 9 (11) 54
All-in sustaining costs 76 37 2 115 52 50 112 33 (11) 236
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 76 37 2 115 52 46 112 33 (11) 232
All-in sustaining costs 76 37 2 115 52 50 112 33 (11) 236
Non-sustaining Project capex - 28 - 28 48 - 1 1 12 62
Non-sustaining exploration and study costs - - 2 2 - - - - 25 25
Corporate and social responsibility costs not
related to current operations - - - - - - 1 - 2 3
All-in costs 76 65 4 145 100 50 114 34 28 326
Adjusted for non-controlling interests and non -
gold producing companies(1) - - - - - (4) - - - (4)
All-in costs adjusted for non-controlling
interests, non-gold producing companies and
stockpile write-offs 76 65 4 145 100 46 114 34 28 322
Gold sold - oz (000)(3) 94 58 - 152 48 54 126 34 - 262
All-in sustaining cost (excluding stockpile
write-offs) per unit - USD/oz(4) 804 640 - 763 1,076 852 891 956 - 887
All-in cost per unit (excluding stockpile write -
offs) - USD/oz(4) 804 1,122 - 961 2,072 867 913 987 - 1,228
For the three months ended 31 December 2013
Operations in Australia, United States of America, Argentina and Brazil
(in USD millions, except as otherwise noted)
UNITED
STATES OF BRAZIL
AMERICA ARGENTINA AngloGold
AUSTRALIA TOTAL Cripple Cerro Ashanti
Sunrise Tropi- Australia AUSTR- Creek & Vangu- Miner- Serra Americas TOTAL
Dam cana other ALIA Victor ardia acao Grande Other AMERICAS
Total cash costs
Total cash costs per financial statements 70 38 - 108 52 44 62 24 1 183
Adjusted for non-controlling interests, non-gold
producing companies and other(1) - - - - (13) (3) - - (1) (17)
Total cash costs adjusted for non- controlling
interests and non-gold producing companies 70 38 - 108 39 41 62 24 - 166
Retrenchment costs - - 1 1 - - - - 1 1
Rehabilitation and other non-cash costs - 2 - 2 (19) - 2 (3) 1 (19)
Amortisation of tangible assets 27 27 1 55 - 7 21 10 - 38
Amortisation of intangible assets - - - - - - 1 - 1 2
Adjusted for non-controlling interests, non-gold
producing companies(1) - - - 20 (1) - - (1) 18
Total production costs adjusted for non-
controlling interests and non-gold producing
companies 97 67 2 166 40 47 86 31 2 206
Gold produced - oz (000)(3) 102 66 - 169 47 61 120 34 - 262
Total cash costs per unit - USD/oz(4) 685 569 - 640 825(6) 672 518 712 - 634
Total production costs per unit - USD/oz(4) 945 1,016 - 985 846 784 720 928 - 787
For the year ended 31 December 2014
Operations in South Africa
(in USD millions, except as otherwise noted)
Total
Vaal West South South
Great Moab River Tau Wits Surface Africa Africa Corpo-
Noligwa Kopanang Khotsong Operations Mponeng Tona Operations operations other (Operations) rate
All-in sustaining costs
Cost of sales per financial statements 94 201 217 512 313 268 581 231 - 1,324 1
Amortisation of tangible and intangible assets (8) (50) (50) (107) (71) (58) (129) (22) 1 (258) (8)
Adjusted for decommissioning amortisation 1 - - 1 - - - 1 (2) - -
Corporate administration and marketing
related to current operations - - - - - - - - 1 1 85
Inventory writedown to net realisable value
and other stockpile adjustments - - - - - - - - 1 1 1
Total sustaining capital expenditure 7 26 44 76 65 35 100 46 7 230 5
All-in sustaining costs 94 177 211 482 307 245 552 256 8 1,298 84
Adjusted for non-controlling interests and non
-gold producing companies(1) - - - - - - - - - - 6
All-in sustaining costs adjusted for non-
controlling interests and non-gold producing
companies 94 177 211 482 307 245 552 256 8 1,298 90
Adjusted for stockpile write-offs - - - - - - - - (1) (1) (1)
All-in sustaining costs adjusted for non-
controlling interests, non-gold producing
companies and stockpile write-offs 94 177 211 482 307 245 552 256 7 1,297 89
All-in sustaining costs 94 177 211 482 307 245 552 256 8 1,298 84
Non-sustaining Project capex - - 2 2 32 - 32 - - 34 -
Technology improvements - - - - - - - - 19 19 5
Non-sustaining exploration and study costs - - - - - - - - - - 7
Corporate and social responsibility costs not
related to current operations - - - - - - - - - -
All-in costs 94 177 213 484 339 245 584 256 27 1,351 96
Adjusted for non-controlling interests and non
-gold producing companies(1) - - 6
All-in costs adjusted for non-controlling
interests and non-gold producing companies 94 177 213 484 339 245 584 256 27 1,351 102
Adjusted for stockpile write-offs - - - - - - - (1) (1) (1)
All-in costs adjusted for non-controlling
interests, non-gold producing companies and
stockpile write-offs 94 177 213 484 339 245 584 256 26 1,350 101
Gold sold - oz (000)(3) 78 140 234 452 313 232 544 223 3 1,223 -
All-in sustaining cost (excluding stockpile
write-offs) per unit - USD/oz(4) 1,185 1,256 903 1,061 981 1,059 1,014 1,153 - 1,064 -
All-in cost per unit (excluding stockpile write-
offs) - USD/oz(4) 1,185 1,256 909 1,064 1,085 1,059 1,074 1,153 - 1,107 -
(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 year ended 31 December 2014
Operations in South Africa
(in USD millions, except as otherwise noted)
Total
Vaal West South South
Great Moab River Tau Wits Surface Africa Africa Corpo-
Noligwa Kopanang Khotsong Operations Mponeng Tona Operations operations other (Operations) rate(5)
Total cash costs
Total cash costs per financial statements 84 144 160 388 233 205 438 210 (1) 1,035 (8)
Adjusted for non-controlling interests, non-
gold producing companies and other(1) - - - - - - - - - - 7
Total cash costs adjusted for non-
controlling interests and non-gold producing
companies 84 144 160 388 233 205 438 210 (1) 1,035 (1)
Retrenchment costs 2 5 3 9 4 3 7 - (1) 16 -
Rehabilitation and other non-cash costs 1 3 4 8 4 3 8 - 1 16 -
Amortisation of tangible assets 6 47 46 100 65 54 119 20 1 239 5
Amortisation of intangible assets 1 2 4 8 5 4 9 2 1 19 3
Total production costs adjusted for non-
controlling interests and non-gold producing
companies 94 201 217 513 311 269 581 232 1 1,325 7
Gold produced - oz (000)(3) 78 141 234 453 313 232 544 223 3 1,223 -
Total cash costs per unit - USD/oz(4
Total production costs per unit - USD/oz(4) 1,074 1,023 685 857 746 882 804 941 - 849 -
1,208 1,431 928 1,132 1,001 1,159 1,068 1,040 - 1,087 -
For the year ended 31 December 2014
Operations in DRC, Ghana, Guinea, Mali, Namibia and Tanzania
(in USD millions, except as otherwise noted)
DRC GHANA GUINEA MALI NAMIBIA TANZANIA Continent TOTAL
Idua- Nava- Africa CONTINENTAL
Kibali priem Obuasi Siguiri Morila Sadiola Yatela chab Geita Other AFRICA
All-in sustaining costs
Cost of sales per financial statements - 192 303 314 - - - 26 403 5 1,243
Amortisation of tangible and intangible assets - (24) (19) (32) - - - - (99) (4) (178)
Adjusted for decommissioning amortisation - - 1 4 - - - - 2 (1) 6
Corporate administration and marketing
related to current operations - - - - - - - - - 1 1
Associates and equity accounted joint
ventures' share of costs(2) 133 - - - 51 89 20 - - 1 294
Inventory writedown to net realisable value
and other stockpile adjustments - - - - - - 8 - - - 8
Sustaining exploration and study costs - - 13 2 - 1 - - 2 (1) 17
Total sustaining capital expenditure 3 21 43 30 6 6 - 1 129 1 240
All-in sustaining costs 136 189 341 318 57 96 28 27 437 2 1,631
Adjusted for non-controlling interests and non
-gold producing companies (1) - - - (48) - - - - - (0) (48)
All-in sustaining costs adjusted for non-
controlling interests and non-gold producing
companies 136 189 341 270 57 96 28 27 437 2 1,583
Adjusted for stockpile write-offs - - - - - - (8) (2) (9) - (19)
All-in sustaining costs adjusted for non-
controlling interests, non-gold producing
companies and stockpile write-offs 136 189 341 270 57 96 20 25 428 2 1,564
All-in sustaining costs 136 189 341 318 57 96 28 27 437 2 1,631
Non-sustaining Project capex 176 - 38 - - - - - - - 214
Non-sustaining exploration and study costs 2 - - 5 - - - - - - 7
All-in costs 314 189 379 323 57 96 28 27 437 2 1,852
Adjusted for non-controlling interests and non
-gold producing companies(1) - - - (48) - - - - - - (48)
All-in costs adjusted for non-controlling
interests and non-gold producing companies 314 189 379 275 57 96 28 27 437 2 1,804
Adjusted for stockpile write-offs - - - - - - (8) (2) (9) - (19)
All-in costs adjusted for non-controlling
interests, non-gold producing companies and
stockpile write-offs 314 189 379 275 57 96 20 25 428 2 1,785
Gold sold - oz (000)(3) 233 185 248 294 44 85 11 34 481 - 1,615
All-in sustaining cost (excluding stockpile
write-offs) per unit - USD/oz(4) 588 1,020 1,374 917 1,298 1,133 1,795 719 890 - 968
All-in cost per unit (excluding stockpile write-
offs) - USD/oz(4) 1,351 1,020 1,530 933 1,298 1,133 1,795 719 890 - 1,105
For the year ended 31 December 2014
Operations in DRC, Ghana, Guinea, Mali, Namibia and Tanzania
(in USD millions, except as otherwise noted)
DRC GHANA GUINEA MALI NAMIBIA TANZANIA Continent TOTAL
Idua- Nava- Africa CONTINENTAL
Kibali priem Obuasi Siguiri Morila Sadiola Yatela chab Geita Other AFRICA
Total cash costs
Total cash costs per financial statements - 153 264 273 - - - 25 286 - 1,001
Adjusted for non-controlling interests, non-
gold producing companies and other(1) - - - (41) - - - - - - (41)
Associates and equity accounted joint
ventures' share of total cash costs(2) 137 - - - 51 87 16 - - - 291
Total cash costs adjusted for non-controlling
interests and non-gold producing companies 137 153 264 232 51 87 16 25 286 - 1,251
Retrenchment costs - - - - - - - - 1 - 1
Rehabilitation and other non-cash costs - 6 15 5 - - - - 7 - 33
Amortisation of tangible assets - 24 19 32 - - - - 99 - 174
Amortisation of intangible assets - - - - - - - - - 4 4
Adjusted for non-controlling interests, non-
gold producing companies(1) - - - (6) - - - - - - (6)
Associates and equity accounted joint
ventures' share of total cash costs(2) 67 - - - 8 25 4 - - - 104
Total production costs adjusted for non-
controlling interests and non-gold producing
companies 204 183 298 263 59 112 20 25 393 4 1,561
Gold produced - oz (000)(3) 237 177 243 290 44 85 11 33 477 - 1,597
Total cash costs per unit - USD/oz(4) 578 865 1,086 799 1,162 1,028 1,438 752 599 - 783
Total production costs per unit - USD/oz(4) 860 1,035 1,223 909 1,343 1,329 1,760 756 821 - 977
For the year ended 31 December 2014
Operations in Australia, United States of America, Argentina and Brazil
(in USD millions, except as otherwise noted)
UNITED
STATES OF BRAZIL
AMERICA ARGENTINA AngloGold
AUSTRALIA TOTAL Cripple Cerro Ashanti
Sunrise Tropi- Australia AUSTR- Creek & Vangu- Miner- Serra Americas TOTAL
Dam cana other ALIA Victor ardia acao Grande Other AMERICAS
All-in sustaining costs
Cost of sales per financial statements 344 296 20 660 218 222 362 156 4 962
Amortisation of tangible and intangible assets (47) (98) (5) (150) (3) (33) (107) (49) - (192)
Adjusted for decommissioning amortisation - 3 - 3 - - - - 1 1
Corporate administration and marketing related
to current operations - - - - - - 1 - - 1
Inventory writedown to net realisable value and
other stockpile adjustments - - - - - - 1 - - 1
Sustaining exploration and study costs - 3 6 9 2 2 8 1 10 23
Total sustaining capital expenditure 31 59 1 91 24 58 127 38 1 248
All-in sustaining costs 328 263 22 613 241 249 392 146 16 1,044
Adjusted for non-controlling interests and non -
gold producing companies(1) - - - - - (19) - - (16) (35)
All-in sustaining costs adjusted for non-
controlling interests and non-gold producing
companies 328 263 22 613 241 230 392 146 - 1,009
Adjusted for stockpile write-offs - - - - - - (1) - - (1)
All-in sustaining costs adjusted for non-
controlling interests, non-gold producing
companies and stockpile write-offs 328 263 22 613 241 230 391 146 - 1,008
All-in sustaining costs 328 263 22 613 241 249 392 146 16 1,044
Non-sustaining Project capex - - - - 145 - - - 1 146
Non-sustaining exploration and study costs - - 7 7 - - 1 - 71 72
Corporate and social responsibility costs not
related to current operations - - - - - - 14 2 1 17
All-in costs 328 263 29 620 386 249 407 148 89 1,279
Adjusted for non-controlling interests and non -
gold producing companies(1) - - - - - (19) - - (1) (20)
All-in costs adjusted for non-controlling
interests and non-gold producing companies 328 263 29 620 386 230 407 148 88 1,259
Adjusted for stockpile write-offs - - - - - - (1) - - (1)
All-in costs adjusted for non-controlling
interests, non-gold producing companies and
stockpile write-offs 328 263 29 620 386 230 406 148 88 1,258
Gold sold - oz (000)(3) 271 350 - 622 210 246 404 138 - 998
All-in sustaining cost (excluding stockpile
write-offs) per unit - USD/oz(4) 1,214 752 - 986 1,147 938 966 1,062 - 1,010
All-in cost per unit (excluding stockpile write-
offs) - USD/oz(4) 1,214 752 - 998 1,837 938 1,004 1,078 - 1,262
For the year ended 31 December 2014
Operations in Australia, United States of America, Argentina and Brazil
(in USD millions, except as otherwise noted)
UNITED
STATES OF BRAZIL
AMERICA ARGENTINA AngloGold
AUSTRALIA TOTAL Cripple Cerro Ashanti
Sunrise Tropi- Australia AUSTR- Creek & Vangu- Miner- Serra Americas TOTAL
Dam cana other ALIA Victor ardia acao Grande Other AMERICAS
Total cash costs
Total cash costs per financial statements 289 195 14 498 222 184 260 102 (2) 766
Adjusted for non-controlling interests, non-gold
producing companies and other(1) - - - - (47) (14) - - - (61)
Total cash costs adjusted for non- controlling
interests and non-gold producing companies 289 195 14 498 175 170 260 102 (2) 705
Retrenchment costs - - 1 1 - 2 3 - 1 6
Rehabilitation and other non-cash costs 4 9 - 13 28 5 (7) - 6 32
Amortisation of tangible assets 47 98 4 149 1 32 101 48 1 183
Amortisation of intangible assets - - 1 1 1 - 6 1 1 9
Adjusted for non-controlling interests, non-gold
producing companies(1) - - - - 12 (3) - - (6) 3
Associates and equity accounted joint ventures'
share of total cash costs(2) - - - - - - - - - -
Total production costs adjusted for non-
controlling interests and non-gold producing
companies 340 302 20 662 217 206 363 151 1 938
Gold produced - oz (000)(3) 262 358 - 619 211 246 403 136 - 996
Total cash costs per unit - USD/oz(4) 1,105 545 - 804 829(6) 692 644 748 - 709
Total production costs per unit - USD/oz(4) 1,301 845 - 1,070 1,031 842 902 1,113 - 942
For the year ended 31 December 2013
Operations in South Africa
(in USD millions, except as otherwise noted)
Total
Vaal West South South
Great Moab River Tau Wits Surface Africa Africa Corpo-
Noligwa Kopanang Khotsong Operations Mponeng Tona Operations operations other (Operations) rate
Cost of sales per financial statements 103 215 240 558 347 262 609 226 - 1,393 1
Amortisation of tangible and intangible assets (8) (43) (60) (111) (82) (51) (133) (9) - (253) (9)
Adjusted for decommissioning amortisation (1) 1 1 1 - - - - - 1 (1)
Corporate administration and marketing
related to current operations - - - - - - - - 5 5 168
Associates and equity accounted joint
ventures' share of costs(2) - - - - - - - - - - 2
Inventory writedown to net realisable value
and other stockpile adjustments - - - - - - - - 1 1 (1)
Sustaining exploration and study costs - - - - - - - - - - (1)
Total sustaining capital expenditure 14 50 78 142 95 59 154 16 - 312 9
All-in sustaining costs 108 223 259 590 360 270 630 233 6 1,459 168
All-in sustaining costs adjusted for non-
controlling interests and non-gold producing
companies 108 223 259 590 360 270 630 233 6 1,459 168
Adjusted for stockpile write-offs - - - - - - - - (1) (1) 1
All-in sustaining costs adjusted for non-
controlling interests, non-gold producing
companies and stockpile write-offs 108 223 259 590 360 270 630 233 5 1,458 169
All-in sustaining costs 108 223 259 590 360 270 630 233 6 1,459 168
Non-sustaining Project capex - 1 39 40 76 1 77 23 (1) 139 (1)
Technology improvements - - - - - - - - 14 14 -
Non-sustaining exploration and study costs - - - - - - - - - - 6
Corporate and social responsibility costs not
related to current operations - - - - - - - - - - 16
All-in costs 108 224 298 630 436 271 707 256 19 1,612 189
All-in costs adjusted for non-controlling
interests and non-gold producing companies 108 224 298 630 436 271 707 256 19 1,612 189
Adjusted for stockpile write-offs - - - - - - - - (1) (1) 1
All-in costs adjusted for non-controlling
interests, non-gold producing companies and
stockpile write-offs 108 224 298 630 436 271 707 256 18 1,611 190
Gold sold - oz (000)(3) 83 178 212 472 354 235 589 240 - 1,302 -
All-in sustaining cost (excluding stockpile
write-offs) per unit - USD/oz(4) 1,305 1,255 1,223 1,249 1,016 1,149 1,069 969 - 1,120 -
All-in cost per unit (excluding stockpile write-
offs) - USD/oz(4) 1,305 1,262 1,406 1,334 1,230 1,152 1,199 1,064 - 1,238 -
(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 year ended 31 December 2013
Operations in South Afri
(in USD millions, except as otherwise note
Total
Vaal West South South
Great Moab River Tau Wits Surface Africa Africa Corpo-
Noligwa Kopanang Khotsong Operations Mponeng Tona Operations operations other (Operations) rate(5)
Total cash costs
Total cash costs per financial statements 91 163 169 423 255 216 471 213 - 1,107 (7)
Adjusted for non-controlling interests, non-
gold producing companies and other(1) - - - - - - - - - - 6
Associates and equity accounted joint
ventures' share of total cash costs(2) - - - - - - - - - - -
Total cash costs adjusted for non-
controlling interests and non-gold producing
companies 91 163 169 423 255 216 471 213 - 1,107 (1)
Retrenchment costs 3 5 6 14 7 6 13 - - 27 -
Rehabilitation and other non-cash costs 1 4 6 11 3 (10) (7) 3 - 7 1
Amortisation of tangible assets 7 41 57 105 77 47 124 8 - 237 5
Amortisation of intangible assets 1 3 3 7 5 3 8 - - 15 2
Adjusted for non-controlling interests,
gold producing companies(1) - - - - - - - - - - (4)
Associates and equity accounted join
ventures' share of total cash costs (2) - - - - - - - - - - 1
Total production costs adjusted for no
controlling interests and non-gold producing
companies 103 216 241 560 347 262 609 224 - 1,393 4
Gold produced - oz (000)(3) 83 178 212 472 354 235 589 240 - 1,302 -
Total cash costs per unit - USD/oz(4) 1,100 918 797 895 719 920 800 883 - 850 -
Total production costs per unit - USD/oz(4) 1,252 1,210 1,138 1,185 978 1,117 1,034 933 - 1,070 -
For the year ended 31 December 2013
Operations in DRC, Ghana, Guinea, Mali, Namibia and Tanzania
(in USD millions, except as otherwise noted)
DRC GHANA GUINEA MALI NAMIBIA TANZANIA Continent TOTAL
Idua- Nava- Africa CONTINENTAL
Kibali priem Obuasi Siguiri Morila Sadiola Yatela chab Geita Other AFRICA
All-in sustaining costs
Cost of sales per financial statements - 226 425 324 - - - 49 346 23 1,393
Amortisation of tangible and intangible assets - (30) (50) (27) - - - (6) (120) (6) (239)
Adjusted for decommissioning amortisation - 1 1 3 - - - - 1 - 6
Corporate administration and marketing
related to current operations - - 1 - - - - - - 2 3
Associates and equity accounted joint
ventures' share of costs(2) 21 - - - 47 118 46 - - - 232
Inventory writedown to net realisable value
and other stockpile adjustments - 83 4 - - 16 - 24 89 - 216
Sustaining exploration and study costs - 1 6 18 - 2 - 1 11 - 39
Total sustaining capital expenditure - 22 154 27 13 11 - 5 146 1 379
All-in sustaining costs 21 303 541 345 60 147 46 73 473 20 2,029
Adjusted for non-controlling interests and non
-gold producing companies(1) - - - (52) - - - - - (1) (53)
All-in sustaining costs adjusted for non-
controlling interests and non-gold producing
companies 21 303 541 293 60 147 46 73 473 19 1,976
Adjusted for stockpile write-offs - (83) (4) - - (16) - (24) (89) - (216)
All-in sustaining costs adjusted for non-
controlling interests, non-gold producing
companies and stockpile write-offs 21 220 537 293 60 131 46 49 384 19 1,760
All-in sustaining costs 21 303 541 345 60 147 46 73 473 20 2,029
Non-sustaining Project capex 341 5 42 3 - 31 2 - 8 28 460
Non-sustaining exploration and study costs 1 - - 9 - - - - - 30 40
All-in costs 363 308 583 357 60 178 48 73 481 78 2,529
Adjusted for non-controlling interests and non
-gold producing companies(1) - - - (54) - - - - - (9) (63)
All-in costs adjusted for non-controlling
interests and non-gold producing companies 363 308 583 303 60 178 48 73 481 69 2,466
Adjusted for stockpile write-offs - (83) (4) - - (16) - (24) (89) - (216)
All-in costs adjusted for non-controlling
interests, non-gold producing companies and
stockpile write-offs 363 225 579 303 60 162 48 49 392 69 2,250
Gold sold - oz (000)(3) 40 215 242 272 57 86 28 63 461 - 1,462
All-in sustaining cost (excluding stockpile
write-offs) per unit - USD/oz(4) 529 1,025 2,214 1,085 1,051 1,510 1, 653 781 833 - 1,202
All-in cost per unit (excluding stockpile write-
offs) - USD/oz(4) 9,168 1,049 2,388 1,122 1,051 1,875 1, 734 781 851 - 1,538
For the year ended 31 December 2013
Operations in DRC, Ghana, Guinea, Mali, Namibia and Tanzania
(in USD millions, except as otherwise noted)
DRC GHANA GUINEA MALI NAMIBIA TANZANIA Continent TOTAL
Idua- Nava- Africa CONTINENTAL
Kibali priem Obuasi Siguiri Morila Sadiola Yatela chab Geita Other AFRICA
Total cash costs
Total cash costs per financial statements - 190 336 290 - - - 44 237 (3) 1,094
Adjusted for non-controlling interests, non-
gold producing companies and other(1) - - - (43) - - - - - - (43)
Associates and equity accounted joint
ventures' share of total cash costs(2) 19 - - - 44 114 42 - - - 219
Total cash costs adjusted for non-controlling
interests and non-gold producing companies 19 190 336 247 44 114 42 44 237 (3) 1,270
Retrenchment costs - 5 30 - - - - - - 3 38
Rehabilitation and other non-cash costs - 7 4 4 - - - (1) - 7 21
Amortisation of tangible assets - 30 50 27 - - - 6 105 18 236
Amortisation of intangible assets - - - - - - - - - 4 4
Adjusted for non-controlling interests, non-
gold producing companies(1) - - - (5) - - - - - - (5)
Associates and equity accounted joint
ventures' share of total cash costs(2) 9 - - - 4 5 4 - - - 22
Total production costs adjusted for non-
controlling interests and non-gold producing
companies 28 232 420 273 48 119 46 49 342 29 1,586
Gold produced - oz (000)(3) 40 221 239 268 57 86 27 63 459 - 1,460
Total cash costs per unit - USD/oz(4) 471 861 1,406 918 773 1,334 1,530 691 515 - 869
Total production costs per unit - USD/oz(4) 701 1,047 1,758 1,018 838 1,389 1,702 771 778 - 1,086
For the year ended 31 December 2013
Operations in Australia, United States of America, Argentina and Brazil
(in USD millions, except as otherwise noted)
UNITED
STATES OF BRAZIL
AMERICA ARGENTINA AngloGold
AUSTRALIA TOTAL Cripple Cerro Ashanti
Sunrise Tropi- Australia AUSTR- Creek & Vangu- Miner- Serra Americas TOTAL
Dam cana other ALIA Victor ardia acao Grande Other AMERICAS
All-in sustaining costs
Cost of sales per financial statements 366 64 19 449 201 199 374 133 3 910
Amortisation of tangible and intangible assets (67) (27) (3) (97) (21) (35) (103) (41) (1) (201)
Corporate administration and marketing related
to current operations - - 1 1 15 - 6 - 1 22
Sustaining exploration and study costs 12 3 8 23 4 7 14 8 - 33
Total sustaining capital expenditure 39 25 5 69 15 61 118 36 - 230
All-in sustaining costs 350 65 30 445 214 232 409 136 3 994
Adjusted for non-controlling interests and non -
gold producing companies(1) - - - - - (18) - - - (18)
All-in sustaining costs adjusted for non-
controlling interests, non-gold producing
companies and stockpile write-offs 350 65 30 445 214 214 409 136 3 976
All-in sustaining costs 350 65 30 445 214 232 409 136 3 994
Non-sustaining Project capex - 216 - 216 148 8 5 4 15 180
Non-sustaining exploration and study costs - - 9 9 - - 6 - 114 120
Corporate and social responsibility costs not
related to current operations - - - - - 1 7 (3) - 5
All-in costs 350 281 39 670 362 241 427 137 132 1,299
Adjusted for non-controlling interests and non -
gold producing companies(1) - - - - - (18) - - - (18)
All-in costs adjusted for non-controlling
interests, non-gold producing companies and
stockpile write-offs 350 281 39 670 362 223 427 137 132 1,281
Gold sold - oz (000)(3) 265 58 - 323 231 236 399 141 - 1,007
All-in sustaining cost (excluding stockpile
write-offs) per unit - USD/oz(4) 1,321 1,113 - 1,376 927 912 1,023 970 - 970
All-in cost per unit (excluding stockpile write-
offs) - USD/oz(4) 1,321 4,850 - 2,073 1,567 947 1,069 971 - 1,271
`
For the year ended 31 December 2013
Operations in Australia, United States of America, Argentina and Brazil
(in USD millions, except as otherwise noted)
UNITED
STATES OF BRAZIL
AMERICA ARGENTINA AngloGold
AUSTRALIA TOTAL Cripple Cerro Ashanti
Sunrise Tropi- Australia AUSTR- Creek & Vangu- Miner- Serra Americas TOTAL
Dam cana other ALIA Victor ardia acao Grande Other AMERICAS
Total cash cost
Total cash costs per financial statements 306 38 14 358 230 162 253 99 1 745
Adjusted for non-controlling interests, non-gold
producing companies and other(1) - - - - (61) (12) - - - (73)
Total cash costs adjusted for non-controlling
interests and non-gold producing companies 306 38 14 358 169 150 253 99 1 672
Retrenchment costs - - 1 1 - 1 2 - - 3
Rehabilitation and other non-cash costs (4) 2 1 (1) (15) 1 7 (4) 1 (10)
Amortisation of tangible assets 67 27 4 98 21 35 101 40 1 198
Amortisation of intangible assets - - - - - - 2 - 1 3
Adjusted for non-controlling interests, non-gold
producing companies(1) - - - 25 (3) - - - 22
controlling interests and non-gold producing
companies 369 67 20 456 200 184 365 135 4 888
Gold produced - oz (000)(3) 276 66 - 342 231 241 391 138 - 1,001
Total cash costs per unit - USD/oz(4) 1,110 568 - 1,047 732(6) 622 646 719 - 671
Total production costs per unit - USD/oz(4) 1,341 1,018 - 1,333 864 767 931 991 - 886
Administrative information
ANGLOGOLD ASHANTI LIMITED
Registration No. 1944/017354/06
Incorporated in the Republic of South Africa
Share codes:
ISIN: ZAE000043485
JSE: ANG
NYSE: AU
ASX: AGG
GhSE: (Shares) AGA
GhSE: (GhDS) AAD
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
(Delisted at 8.00 am on Monday, 22 September
2014. This information is provided purely for
administrative purposes until September 2015)
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^
A Garner#
DL Hogdson^
NP January-Bardill^
MJ Kirkwood*
Prof LW Nkuhlu^
M Richter#
R J Ruston~
* British ^ South African
~ Australian § Indian
# American
Officers
EVP – Legal, Commercial and Governance
and Company Secretary: 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 BuyDIRECT(SM)
BoNY maintains a direct share purchase and
dividend reinvestment plan for ANGLOGOLD ASHANTI.
Telephone: +1-888-BNY-ADRS
Date: 23/02/2015 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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