Wrap Text
Market update report for the quarter ended 31 March 2017
AngloGold Ashanti Limited
(Incorporated in the Republic of South Africa)
Reg. No. 1944/017354/06
ISIN. ZAE000043485 - JSE share code: ANG
CUSIP: 035128206 - NYSE share code: AU
("AngloGold Ashanti" or the "Company")
Market update report
for the quarter ended 31 March 2017
Johannesburg, 8 May 2017 - AngloGold Ashanti is pleased to provide an operational update for the quarter ended
31 March 2017. Detailed financial and operational results are provided on a six-monthly basis i.e. at the end of June and
December.
- Group safety milestone achieved with first ever fatality-free March quarter
- Group achieves two consecutive fatality-free quarters; South Africa region has operated for nine months
without a fatality
- Gold production of 830,000oz at an average total cash cost of $813/oz (up from $702/oz in Q1 2016)
- All-in sustaining costs of $1,060/oz up from $860/oz in Q1 2016, impacted by strengthening currencies and
planned higher capital investment
- Adjusted EBITDA of $314m, down from $378m in Q1 2016
- Free cash outflow of $119m, reflecting higher costs, adverse working capital movements and planned higher
capital expenditure
- Net debt to Adjusted EBITDA ratio of 1.38 times, down from 1.47 times at the end of Q1 2016
- Full year guidance remains unchanged
Quarter Year
ended ended ended ended
Mar Dec Mar Dec
2017 2016 2016 2016
US dollar / Imperial
Operating review
Gold
Produced - oz (000) 830 983 861 3,628
Sold - oz (000) 877 945 876 3,590
Financial review
Price received - $/oz 1,216 1,216 1,185 1,249
All-in sustaining costs - $/oz 1,060 1,047 860 986
All-in costs - $/oz 1,137 1,145 924 1,071
Total cash costs - $/oz 813 764 702 744
Gross profit - $m 135 176 193 841
Free cash (outflow) / inflow - $m (119) 39 70 278
Net debt - $m 2,053 1,916 2,127 1,916
Capital expenditure - $m 216 282 128 811
$ represents US dollar, unless otherwise stated.
Rounding of figures may result in computational discrepancies.
FINANCIAL AND CORPORATE REVIEW
First quarter overview
AngloGold Ashanti achieved key safety records, with its first ever fatality-free March quarter, and achieved two consecutive fatality free
quarters for the second time in its history. The South Africa region reached a new milestone of 247 fatality-free days (exceeding
its previous record set in 2014 of 242 days). Moab Khotsong has passed 20 months without a fatality, a new record, whilst the region
has exceeded five million fatality-free shifts. Given the challenging conditions of ultra-deep mining operations, the entire team, in
cooperation with a broad group of stakeholders, must be commended for delivering this critical objective in line with AngloGold
Ashanti's commitment to safe production.
The Company remains on track to deliver full-year production guidance. Production was 830,000oz at an average total cash cost of
$813/oz for the first quarter of 2017, compared to 861,000oz at $702/oz for the first quarter of 2016, with the increase in costs per
ounce driven largely by the stronger operating currencies in South Africa and Brazil (the Rand and the Brazilian Real gained 16% and
19% against the US dollar respectively), as well as lower volumes produced.
All-in sustaining costs (AiSC) for the period were $1,060/oz, up from $860/oz for the first quarter of 2016, with the increase being
driven by the 16% rise in cash costs year-on-year, as well as the planned 71% increase in sustaining capital expenditure to reach
$186m during the first quarter of 2017, up from $109m for the first quarter of 2016. The higher capital expenditure levels are reflective
of a strategic inward investment programme which is focused on securing medium to long term operating improvements, principally
at the International operations, while maintaining a disciplined approach to capital expenditure with the overall goal of delivering
sustainable free cash flows through the cycle. The focus areas include a new power plant and underground development at Geita,
increased underground development at Kibali and Cuiabá, with the latter aiming at improving flexibility related to geotechnical
conditions, and capitalised stripping at Iduapriem and Tropicana. It is anticipated that the sustaining capital expenditure will peak in
2017 based current plans. All-in costs were $1,137/oz for the first quarter of 2017, up from $924/oz for the first quarter of 2016.
Production from the International operations was 632,000oz at a total cash cost of $714/oz for the first quarter of 2017, up from
625,000oz at a total cash cost of $674/oz in the corresponding period last year. This increase reflected solid performances across the
portfolio, with exceptional performances from Siguiri, Iduapriem and Cerro Vanguardia. AiSC for the first quarter of 2017 was $963/oz,
up from $822/oz for the first quarter of 2016, with the increase attributable to the impact of stronger local currencies, lower average
grades and the planned increase in sustaining capital expenditure.
South Africa had a difficult production quarter, as an added focus on a safe start-up contributed to an unusually slow ramp-up after
the year-end break. This was compounded by: continued recovery from last year's interruptions, particularly in the fourth quarter; a
poor mining mix, whereby lower-grade areas dominated volumes at some operations; more fractured ground than previously
anticipated in areas currently being mined at TauTona and Moab Khotsong; and unwarranted deviations from mining plans,
particularly in the first half of the quarter. Steps have been taken to address the poor adherence to mining plans and management
work routines, to improve productivity. These steps have already resulted in an improvement in mineable face length, leading to
volume recoveries in the second half of the quarter, and into the current quarter. These improvements will also contribute to our
forecast for an overall increase in production rates over the remainder of the year.
During the seasonally weaker first quarter of 2017, the Company maintained good balance sheet flexibility with net debt to adjusted
earnings before interest, tax, depreciation and amortisation (Adjusted EBITDA) ratio at 1.38 times. Net debt at 31 March 2017 was
$2.05bn, down from $2.13bn at 31 March 2016, and remained at comfortable levels despite the planned increase in capital
expenditure, which was $216m for the first quarter of 2017, up from $128m for the first quarter of 2016. This decrease in net debt
was due to the redemption of the high yield bond using a combination of the group's USD Revolving Credit Facility and free cash
flow generated during 2016. Subsequent to 31 December 2016, net debt increased by $137m from $1.92bn to $2.05bn due mainly
to the free cash outflow for the quarter of $119m.
Cash inflow from operating activities during the first quarter of 2017 was $93m, down from $227m for the first quarter of 2016, with
the decrease mainly due to adverse movements in working capital ($76m), and the dual impact of lower production and increased
cash costs ($60m). This was partly offset by the higher gold price received.
Free cash outflow was $119m, compared to the $70m free cash inflow reported in the first quarter of 2016, reflecting higher costs, the
negative impact of working capital movements and the planned increase in sustaining capital expenditure levels. This was only
partially offset by a reduction in taxes paid and a slightly higher price received during the quarter.
"Our International operations have again delivered a strong result, with our brownfields investments proceeding to plan," Srinivasan
Venkatakrishnan, Chief Executive Officer of AngloGold Ashanti, said. "On the back of the strong safety result, we are reviewing our
South African operations to restore their margin and ensure they recover from a difficult start to the year."
Total capital expenditure (including equity accounted entities) during the first quarter of 2017 was $216m, up from $128m for the first
quarter of 2016. Total capital expenditure included $186m of sustaining capital expenditure and $30m of project capital expenditure.
Capital expenditure is expected to increase in the remaining three quarters of the year, in line with historical seasonal trends.
Adjusted EBITDA was $314m for the first quarter of 2017, down from $378m for the first quarter of 2016 .The outlook for the full year
remains unchanged as follows:
- Production between 3.6Moz and 3.75Moz;
- Capital expenditure between $950m and $1,050m;
- Total cash costs between $750/oz and $800/oz; and
- AiSC between $1,050/oz and $1,100/oz, assuming average exchange rates against the US dollar of 14.25ZAR (Rand),
3.40BRL (Brazil Real), 0.75AUD (Aus$) and 16.50ARS (Argentina Peso), with oil at $58/bl on average for the year.
Both production and cost estimates assume neither labour interruptions or power disruptions, nor changes to asset portfolio and/or
operating mines and have not been reviewed by our external auditors. Other unknown or unpredictable factors could also have material
adverse effects on our future results and no assurance can be given that any expectations expressed by AngloGold Ashanti will prove
to have been correct. Please refer to the Risk Factors section in AngloGold Ashanti’s annual report on Form 20-F for the year ended
31 December 2016, filed with the United States Securities and Exchange Commission.
FINANCIAL AND OPERATING REPORT
SAFETY UPDATE
AngloGold Ashanti recorded its first ever March quarter without a fatal accident. This achievement comes as the Company delivered
two, consecutive fatality-free quarters at its operations, including the ultra-deep South African mines, which reached a new milestone
of 247 days without a fatality. All of the South African operations, with the exception of Kopanang, have now achieved one million
fatality-free shifts, with the region as a whole now exceeding five million shifts.
Sadiola, Yatela, Siguiri, Iduapriem, Obuasi, Sunrise Dam, the projects of Gramalote and Quebradona, and also the Greenfields
Exploration unit recorded an injury free quarter. The All-Injury Frequency Rate for the International operations improved by 5%, whilst
the Group saw a regression to 8.85 injuries per million hours worked during the first quarter of 2017, from 8.44 for the first quarter of
2016.
OPERATING HIGHLIGHTS
The South African operations produced 198,000oz at a total cash cost of $1,158/oz for the quarter ended 31 March 2017 compared
to 236,000oz at a total cash cost of $786/oz for the quarter ended 31 March 2016. AiSC for the first quarter of 2017 ended at $1,327/oz,
up from $919/oz, for the first quarter of 2016.
As detailed above, production in the region was lower year-on-year, hindered by an unusually slow start up after the Christmas
holidays, lower recovered grades across all its operations and efficiency constraints encountered in obtaining sufficient face time at
key operations. Costs were heavily impacted by the lower production volumes and by the strengthening of the Rand against the U.S.
dollar, with an average appreciation of 16% of the Rand against the dollar compared to the first quarter of 2016.
At the West Wits Operations, production was 77,000oz, down from 97,000oz during the first quarter of 2016 due to an anticipated
reduction in grades (11% lower at Mponeng) and also poor equipment availability. Ground conditions were also more fractured
than originally anticipated at TauTona, causing increased dilution and necessitating additional off-reef mining and underground
support. A 3.2 magnitude seismic event at the 85 cross-cut on 115 Level at TauTona also caused mining to halt to allow
rehabilitation of the area. TauTona saw inadequate face-length availability caused by poor adherence to mining plans. Remedial
steps have been taken (see First quarter overview).
At the Vaal River Operations, production was 74,000oz, down from 90,000oz for the first quarter of 2016. Kopanang and Moab
experienced sub-optimal grade-mix and both struggled to build production volumes after the year-end break, given the deviation from
operating plans, which resulted in poor face-length availability. At Moab, off-reef mining was higher than planned in order to ensure
greater geological stability, in addition to ore-pass lock-up and channel sequencing challenges. At Kopanang, clearing of waste
tonnes in the ore pass contributed to a 35% reduction in yields. To mitigate the lack of face length build-up, primarily due to safety
stoppages experienced in 2016, a revised service work strategy and schedule has been established to help increase immediate
mineable face length.
At Surface operations, despite higher tailings throughput, production volumes from the marginal ore dumps were below plant capacity
given low availability at the Kopanang Gold Plant, and logistical challenges getting material into the plant. Remedial steps have been
identified to recover plant throughput.
Mine Waste Solutions' (MWS) performance was hampered by unusually heavy rains during the first quarter, which had caused
periodic suspension of operations. This was compounded by a significant fall-off in gold reclaimed through the two circuits servicing
the flotation plant. Grades, recoveries and consequently gold production are expected to improve given a recent upgrade to the sulphur
pay dam pump station.
In the Continental Africa region, production increased to 314,000oz at a total cash cost of $759/oz for the quarter ended
31 March 2017, up from 305,000oz at a total cash cost of $719/oz for the quarter ended 31 March 2016. AiSC for the first quarter of
2017 was $939/oz, up from $815/oz for the first quarter of 2016.
At Kibali, in the DRC, production of 63,000oz was 7% higher than the first quarter of 2016, when the operation experienced lower
recoveries while commissioning the sulphide circuit. Total cash costs at $881/oz was up $107/oz, or 14%, from $774/oz for the first
quarter of 2016, as a result of higher fuel costs due to increased open-pit mining during the period.
In Tanzania, production from Geita decreased by 7% to 105,000oz following a planned 6% drop in recovered grade as a result of
mining different benches in Nyankanga. Total cash costs increased by 12% or $67/oz, to $615/oz, primarily due to the lower
production, stockpile and gold in process movements and higher fuel prices relative to the previous period.
In Ghana, Iduapriem's production increased by 7% to 49,000oz as a result of a 23% increase in recovered grades which, was partially
offset by the lower tonnes treated. Total cash costs decreased by 7% to $920/oz, mainly due to the higher gold production, lower cost
of grid power and fuel compared to the corresponding period last year. Obuasi remained in care and maintenance with no production
anticipated for 2017, with partial rehabilitation activities undertaken during the quarter while future operational options for the mine are
being evaluated.
In Guinea, production at Siguiri increased by 13,000oz or 21% to 75,000oz as a result of access to higher grade ore sources at the
Area 1 mining zone secured in the third quarter of last year. Total cash costs at $695/oz were 7% lower than the first quarter of last
year as a result of the higher production, partly offset by higher mining costs.
In Mali, production from Sadiola decreased by 16% to 16,000oz as operational flexibility becomes limited due to the depletion of oxide
operations. This had a negative impact on recoveries, though this was partly offset by a 5% increase in tonnes treated. Total cash
costs increased by 26% or $199/oz to $971/oz, due to the lower production together with a relatively high fixed cost base.
In the Americas, production was 191,000oz at a total cash cost of $631/oz for the quarter ended 31 March 2017 compared to
196,000oz at a total cash cost of $516/oz for the same quarter in 2016. AiSC for the first quarter of 2017 ended at $954/oz, compared
to $723/oz, for the first quarter of 2016.
In Argentina, Cerro Vanguardia´s production was 67,000oz, up 3% year-on-year, mainly due to higher tonnes treated at the plant
driven by operational and metallurgical improvements, partially offset by lower grades. Silver production increased by 16% compared
to the first quarter of 2016 in accordance with plans. Total cash costs were higher in the first quarter of 2017 compared to the same
period last year, mainly as a result of the elimination of Patagonia ports rebates by the end of December 2016. These negative effects
were partially attenuated by favourable stockpile movements due to higher volumes of stockpile inventory derived from higher tonnes
mined.
In Brazil, at AGA Mineração, production was 95,000oz, down 3% compared to the first quarter of 2016, due to planned lower
grades. Serra Grande was affected by lower feed grade consistent with plan, partially off-set by higher tonnes treated. Total cash costs
in Brazil were impacted by the stronger Brazilian Real relative to the U.S. dollar, lower production volumes, and inflationary pressures
including higher costs for labour, materials and services. Costs were also impacted by stockpile and gold in process movements
at Serra Grande.
The Australia region produced 127,000oz at a total cash cost of $734/oz for the first quarter of 2017, up from 124,000oz at a total
cash cost of $814/oz for the first quarter of 2016. AiSC for the first quarter was $1,045/oz, compared to $994/oz in the same quarter
a year ago.
At Sunrise Dam, production was slightly higher than the corresponding quarter last year with a 4% increase in mill feed grade and a
4% increase in metallurgical recovery offsetting slightly lower mill throughput. Sunrise Dam achieved its first injury-free quarter on
record in the March quarter. At Tropicana, production was similar to the first quarter of 2016, with the lower head grade - due to
the end of grade streaming - offset by 16% higher mill throughput.
Total cash costs at Sunrise Dam of $885/oz were 5% higher than total cash costs for the first quarter of 2016. This was mostly due to
the AUD/USD exchange rate, with cash costs in Australian dollar terms less than 1% above the corresponding quarter last year. At
Tropicana, total cash costs were 24% lower at $550/oz, compared to $728/oz for the first quarter of 2016. The first quarter of 2017
included a larger amount of capitalised mining costs, related to mining the early stages of the Havana 3 and Tropicana 2 pits.
UPDATE ON CAPITAL PROJECTS
Kibali
The ultra-fine grind (UFG) capacity increased during the quarter, with commissioning of four new UFG mills. This enables the
processing of increased floatation concentrate volumes, improving grind and recoveries, as well as providing flexibility in ore treatment.
Ambarau, the second hydropower station, was also completed and commissioned during the first quarter, taking Kibali's total hydro
generation capacity to 32MW.
The underground produced 323kt (100%) of ore from the declines during the quarter. In addition, Kibali completed 3.2km of
development from the declines during the quarter. The shaft material handling system progressed during the quarter with the first ore
bins completed and the underground crusher installed, while 617m of development from the shaft was completed, 6% ahead of plan.
Siguiri Combination Plant
The project remains on schedule. All major equipment for the new combination plant has been ordered, whilst orders for the power plant
will be completed during the second quarter. The owner's team has been established on site and the EPCM team is expected to be at
full strength before mid-year, in parallel with site mobilisation of the civils and earthwork contract, which has also been awarded. Hard
rock mining is planned to commence in December 2017.
Mponeng Phase 1 and 2
The Phase 1 project continued ahead of schedule during the first quarter, as construction of ore and water handling infrastructure
remain ahead of schedule for completion this year. Activities related to secondary support are also progressing according to plan. The
126 level ramp-up to steady state ore reserve development, and subsequent gold delivery, are expected to commence during the third
quarter of 2017, once the ore handling infrastructure is commissioned.
During the quarter, work undertaken included the inter level ice hole equipping, the construction of the 116 level substation as well as
the water handling infrastructure complex on 121 level. The electrical and water reticulation infrastructure construction remains behind
schedule, though none of these activities directly affects the critical path of the project.
Colombia update
Following the outcome of the plebiscite held on 26 March 2017 in the Colombian Municipality of Cajamarca, which hosts the company's
La Colosa exploration site, we have taken the decision to pause much of the current fieldwork around the project whilst we study the
impact of the decision on future investment. We will, in the meantime, continue the necessary engagement with all stakeholders to
build consensus around the creation of a modern, environmentally responsible gold-mining industry in Colombia. This will unfortunately
result in significantly reduced expenditure related to the project, with a consequent impact on employment and our investment in the
Tolima region, whilst this process is underway.
For more details on work done during the quarter, see the Exploration Update document on the company website:
www.anglogoldashanti.com
The financial information, including any forward-looking information, set out in this market update report has not been reviewed and
reported on by the Company's external auditors. Outlook data is forward-looking information which is further discussed on the back
cover of this document.
Operations at a glance
for the quarters ended March 2017, December 2016 and March 2016
Production Underground milled / treated Surface milled / treated Open-pit treated Underground Recovered grade Surface Recovered grade Open-pit Recovered grade
oz (000) 000 tonnes 000 tonnes 000 tonnes g/tonne g/tonne g/tonne
Mar-17 Dec-16 Mar-16 Mar-17 Dec-16 Mar-16 Mar-17 Dec-16 Mar-16 Mar-17 Dec-16 Mar-16 Mar-17 Dec-16 Mar-16 Mar-17 Dec-16 Mar-16 Mar-17 Dec-16 Mar-16
SOUTH AFRICA 198 246 236 758 791 769 8,879 8,689 9,173 - - - 6.23 7.74 7.56 0.15 0.16 0.16 - - -
Vaal River Operations 74 98 90 382 385 360 - - - - - - 6.06 7.93 7.76 - - - - - -
Kopanang 14 19 22 132 121 133 - - - - - - 3.37 4.92 5.22 - - - - - -
Moab Khotsong 60 79 68 250 264 227 - - - - - - 7.49 9.32 9.25 - - - - - -
West Wits Operations 77 99 97 368 392 385 - - - - - - 6.55 7.83 7.82 - - - - - -
Mponeng 48 67 59 223 249 243 - - - - - - 6.66 8.38 7.47 - - - - - -
TauTona 30 31 38 144 143 142 - - - - - - 6.36 6.86 8.43 - - - - - -
Total Surface Operations 43 46 47 - - - 8,879 8,689 9,173 - - - - - - 0.15 0.16 0.16 - - -
First Uranium SA 23 23 24 - - - 6,375 6,202 6,747 - - - - - - 0.11 0.12 0.11 - - -
Surface Operations 20 23 23 - - - 2,503 2,487 2,427 - - - - - - 0.25 0.28 0.29 - - -
Other 4 3 2 8 14 23 - - - - - - - - - - - - - - -
INTERNATIONAL OPERATIONS 632 738 625 1,922 2,051 1,724 - - - 8,084 9,069 8,011 3.49 3.81 3.71 - - - 1.56 1.60 1.57
CONTINENTAL AFRICA 314 369 305 229 202 157 - - - 6,311 7,351 6,314 4.77 5.22 5.10 - - - 1.37 1.39 1.37
DRC
Kibali - Attr. 45% 63 82 59 149 202 157 - - - 715 709 581 5.24 5.22 5.10 - - - 1.67 2.11 1.77
Ghana
Iduapriem 49 60 46 - - - - - - 1,054 1,459 1,217 - - - - - - 1.44 1.28 1.16
Obuasi - - 1 - - - - - - - - - - - - - - - - - -
Guinea
Siguiri - Attr. 85% 75 71 62 - - - - - - 2,282 2,691 2,460 - - - - - - 1.02 0.82 0.78
Mali
Morila - Attr. 40% 5 5 6 - - - - - - 573 504 308 - - - - - - 0.29 0.33 0.65
Sadiola - Attr. 41% 16 17 19 - - - - - - 504 559 482 - - - - - - 0.99 0.94 1.23
Tanzania
Geita 105 134 113 79 - - - - - 1,183 1,428 1,267 3.89 - - - - - 2.51 2.76 2.76
Non-controlling interests,
exploration and other
AUSTRALASIA 127 149 124 774 894 670 - - - 1,511 1,463 1,494 1.96 2.05 1.89 - - - 1.60 1.90 1.74
Australia
Sunrise Dam 57 64 54 774 894 670 - - - 189 136 353 1.96 2.05 1.89 - - - 1.30 1.11 1.15
Tropicana - Attr. 70% 70 85 70 - - - - - - 1,322 1,327 1,141 - - - - - - 1.65 1.98 1.92
Exploration and other
AMERICAS 191 220 196 919 955 897 - - - 262 254 203 4.46 5.15 4.83 - - - 5.75 6.05 6.45
Argentina
Cerro Vanguardia
- Attr. 92.50% 67 74 65 60 67 80 - - - 217 222 168 7.68 8.49 7.15 - - - 6.62 6.52 7.33
Brazil
AngloGold Ashanti
Mineração 95 112 98 562 600 526 - - - - - - 4.98 5.61 5.37 - - - - - -
Serra Grande 29 34 33 297 288 291 - - - 45 32 35 2.83 3.41 3.20 - - - 1.53 2.79 2.24
Non-controlling interests,
exploration and other
Total 830 983 861 2,680 2,842 2,493 8,879 8,689 9,173 8,084 9,069 8,011 4.27 4.90 4.90 0.15 0.16 0.16 1.56 1.60 1.57
Rounding of figures may result in computational discrepancies.
Operations at a glance (continued)
for the quarters ended March 2017, December 2016 and March 2016
Total cash costs All-in sustaining costs ORD / Stripping capex Other sustaining capex Non sustaining capex Gross profit (loss)
$/oz $/oz $m $m $m $m
Mar-17 Dec-16 Mar-16 Mar-17 Dec-16 Mar-16 Mar-17 Dec-16 Mar-16 Mar-17 Dec-16 Mar-16 Mar-17 Dec-16 Mar-16 Mar-17 Dec-16 Mar-16
SOUTH AFRICA 1,158 971 786 1,327 1,199 919 26 26 22 6 21 5 6 7 5 (42) 33 25
Vaal River Operations 1,120 917 786 1,301 1,095 925 11 11 9 2 6 1 - - - (8) 12 15
Kopanang 2,081 1,712 1,205 2,399 2,057 1,387 3 3 3 1 2 - - - - (16) (16) (7)
Moab Khotsong 891 724 647 1,042 862 772 8 8 6 1 4 1 - - - 9 27 21
West Wits Operations 1,283 1,023 813 1,513 1,289 984 15 15 13 2 6 2 6 6 5 (24) (7) 15
Mponeng 1,134 857 726 1,376 1,113 930 10 10 9 2 4 2 6 6 5 (8) 6 13
TauTona 1,524 1,376 947 1,737 1,666 1,066 6 6 3 1 2 1 - - - (16) (13) 2
Total Surface Operations 999 978 730 1,021 1,183 750 - - - 1 6 1 - - - (11) 29 (4)
First Uranium SA 846 828 609 868 1,107 643 - - - - 3 1 - - - (12) 27 (11)
Surface Operations 1,174 1,130 857 1,199 1,260 862 - - - 1 3 - - - - - 1 7
Other - - - - - - - - - 1 2 1 - - - - - -
INTERNATIONAL OPERATIONS 714 692 674 963 969 822 104 75 42 48 112 40 24 40 14 169 150 175
CONTINENTAL AFRICA 759 725 719 939 968 815 43 19 16 22 62 15 24 39 14 69 65 75
DRC
Kibali - Attr. 45% 881 640 774 994 825 830 4 4 4 6 4 1 19 19 9 (7) 12 4
Ghana
Iduapriem 920 863 992 1,007 896 981 11 - - 1 4 - - - - 18 14 6
Obuasi - - 443 - - 715 - - - - - - - - 4 3 1 (3)
Guinea
Siguiri - Attr. 85% 695 876 746 785 1,068 819 - - - 3 12 6 5 13 1 31 17 3
Mali
Morila - Attr. 40% 1,027 1,259 926 1,343 1,732 1,056 - - - 1 1 - - - - - (4) -
Sadiola - Attr. 41% 971 1,271 772 1,056 1,379 805 - - - 1 1 - - 3 - 1 (4) 5
Tanzania
Geita 615 535 548 986 942 722 28 15 12 9 39 7 - - - 18 25 38
Non-controlling interests,
exploration and other - - - 1 2 1 - 2 - 5 2 4
AUSTRALASIA 734 713 814 1,045 1,007 994 24 21 4 12 12 13 - - - 40 30 25
Australia
Sunrise Dam 885 886 840 1,023 1,009 985 4 4 4 4 5 3 - - - 13 13 12
Tropicana - Attr. 70% 550 524 728 974 920 900 20 17 - 8 7 11 - - - 33 24 19
Exploration and other - - - - - - - - - (6) (6) (5)
AMERICAS 631 619 516 954 930 723 38 35 22 15 37 11 - 1 - 59 57 75
Argentina
Cerro Vanguardia - Attr. 92.50% 533 633 509 837 939 650 10 13 5 2 10 (0) - - - 26 17 30
Brazil
AngloGold Ashanti Mineração 628 570 485 951 871 702 21 16 11 10 19 7 - 1 - 32 34 36
Serra Grande 891 731 565 1,274 1,076 874 6 5 6 3 6 4 - - - (2) 5 9
Non-controlling interests,
exploration and other 1 1 0 1 2 (0) - - - 3 1 -
Continuing operations 813 764 702 1,060 1,047 860 131 101 64 55 134 45 30 46 19
OTHER 4 (4) 1
Total 131 101 64 55 134 45 30 46 19 129 181 201
Equity accounted investments included above 6 (5) (8)
AngloGold Ashanti 135 176 193
Rounding of figures may result in computational discrepancies.
Development Sampling
for the quarter ended 31 March 2017
Development values represent actual results of sampling, no allowances having been made for adjustments necessary in estimating Ore Reserves.
Statistics are shown in metric units Advanced Sampled
metres Sampled Avg. ore body gold uranium
(total)* metres thickness (cm) Avg. g/t Avg. cm.g/t Avg. kg/t Avg. cm.kg/t
SOUTH AFRICA
VAAL RIVER
Kopanang
Vaal reef 888 74 13.2 183.56 2,423 7.26 94.00
Moab Khotsong
Moab Khotsong Vaal reef 2,371 418 92.5 51.45 4,759 0.94 84.00
Great Noligwa Vaal reef 292 86 106.5 37.21 3,963 0.94 101.00
WEST WITS
Mponeng
Ventersdorp Contact reef 1,305 238 64.3 22.95 1,476 - -
TauTona
TauTona Carbon Leader reef 1,086 58 20.3 186.45 3,785 0.47 9.00
AUSTRALASIA
Sunrise Dam 1,983 - - 1.68 - - -
AMERICAS
AngloGold Ashanti Mineração
Mina de Cuiabá 2,431 1,351 63.0 5.33 - - -
Lamego 950 432 60.0 2.94 - - -
Córrego do Sitio Mina I 2,173 556 - 4.37 - - -
Serra Grande
Mina III 2,176 4,098 - 2.50 - - -
Mina Nova 1,239 3,325 - 2.62 - - -
CVSA
Cerro Vanguardia 2,347 810 400.0 8.71 - - -
Statistics are shown in imperial units Advanced Sampled
feet Sampled Avg. ore body gold uranium
(total)* feet thickness (inches) Avg. oz/t Avg. ft.oz/t Avg. lb/t Avg. ft.lb/t
SOUTH AFRICA
VAAL RIVER
Kopanang
Vaal reef 2,914 243 5.20 5.35 2.32 14.52 6.29
Moab Khotsong
Moab Khotsong Vaal reef 7,780 1,371 36.42 1.50 4.55 1.88 5.71
Great Noligwa Vaal reef 958 282 41.93 1.09 3.79 1.88 6.57
WEST WITS
Mponeng
Ventersdorp Contact reef 4,281 781 25.31 0.67 1.41 - -
TauTona
TauTona Carbon Leader reef 3,564 190 7.99 5.44 3.62 0.94 0.63
AUSTRALASIA
Sunrise Dam 6,506 - - 0.05 - - -
AMERICAS
AngloGold Ashanti Mineração
Mina de Cuiabá 7,976 4,433 24.80 0.16 - - -
Lamego 3,117 1,417 23.62 0.09 - - -
Córrego do Sitio Mina I 7,128 1,826 - 0.13 - - -
Serra Grande
Mina III 7,140 13,445 - 0.07 - - -
Mina Nova 4,065 10,909 - 0.08 - - -
CVSA
Cerro Vanguardia 7,700 2,656 157.48 0.25 - - -
* This includes total "on-reef" and "off-reef" development metres
Administration and corporate information
ANGLOGOLD ASHANTI LIMITED Directors Share Registrars
Executive South Africa
Registration No. 1944/017354/06 S Venkatakrishnan*($) (Chief Executive Officer) Computershare Investor Services (Pty) Limited
Incorporated in the Republic of South Africa KC Ramon^ (Chief Financial Officer) Rosebank Towers, 15 Biermann Avenue,
Rosebank, 2196
(PO Box 61051, Marshalltown 2107)
Share codes: Non-Executive South Africa
ISIN: ZAE000043485 SM Pityana^ (Chairman) Telephone: 0861 100 950 (in SA)
JSE: ANG Prof LW Nkuhlu^ (Deputy Chairman) Fax: +27 11 688 5218
NYSE: AU A Garner(#) Web.Queries@computershare.co.za
ASX: AGG R Gasant^
GhSE: (Shares) AGA DL Hodgson^
GhSE: (GhDS) AAD NP January-Bardill^ Australia
MJ Kirkwood* Computershare Investor Services Pty Limited
M Richter(#) Level 11, 172 St George's Terrace
RJ Ruston~ Perth, WA 6000
SV Zilwa^ (GPO Box D182 Perth, WA 6840)
JSE Sponsor: Australia
Deutsche Securities (SA) Proprietary Limited Telephone: +61 8 9323 2000
Telephone: 1300 55 2949 (Australia only)
Fax: +61 8 9323 2033
Auditors: Ernst & Young Inc. * British ($)Indian (#)American
~ Australian ^South African Ghana
Offices NTHC Limited
Registered and Corporate Officers Martco House
76 Rahima Moosa Street Executive Vice President - Legal, Commercial and Off Kwame Nkrumah Avenue
Newtown 2001 Governance and Company Secretary: PO Box K1A 9563 Airport
(PO Box 62117, Marshalltown 2107) ME Sanz Perez Accra
South Africa Ghana
Telephone: +27 11 637 6000 Telephone: +233 302 235814/6
Fax: +27 11 637 6624 Investor Relations Contacts Fax: +233 302 229975
Stewart Bailey
Telephone: +27 11 637 6031 ADR Depositary
Australia Mobile: +27 81 032 2563 BNY Mellon (BoNY)
Level 13, St Martins Tower E-mail: sbailey@anglogoldashanti.com BNY Shareowner Services
44 St George's Terrace PO Box 30170
Perth, WA 6000 College Station, TX 77842-3170
(PO Box Z5046, Perth WA 6831) Fundisa Mgidi United States of America
Australia Telephone: +27 11 637 6763 Telephone: +1 866-244-4140 (Toll free in USA) or
Telephone: +61 8 9425 4602 Mobile: +27 82 821 5322 +1 201 680 6825 (outside USA)
Fax: +61 8 9425 4662 E-mail: fmgidi@anglogoldashanti.com E-mail: shrrelations@cpushareownerservices.com
Website: www.mybnymdr.com
Sabrina Brockman Global BuyDIRECT SM
Ghana Telephone: +1 646 880 4526 BoNY maintains a direct share purchase and dividend
Gold House Mobile: +1 646 379 2555 reinvestment plan for ANGLOGOLD ASHANTI.
Patrice Lumumba Road E-mail: sbrockman@anglogoldashantina.com Telephone: +1-888-BNY-ADRS
(PO Box 2665)
Accra General e-mail enquiries
Ghana Investors@anglogoldashanti.com
Telephone: +233 302 773400
Fax: +233 303 778155 AngloGold Ashanti website
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
Forward-looking statements
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, total cash costs, all-in sustaining costs, all-in costs, cost savings and other operating results, 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 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 reports on Form 20-F filed with the United States Securities and Exchange Commission. 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.
Non-GAAP financial measures
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.
Date: 08/05/2017 07:05:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
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