ANGLOGOLD ASHANTI LIMITED - AngloGold Ashanti to Restructure South African Operations to Ensure Their Viability

AngloGold Ashanti to Restructure South African Operations to Ensure Their Viability

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”)


28 June 2017

NEWS RELEASE

AngloGold Ashanti to Restructure South African Operations to Ensure Their Viability

(PRESS RELEASE – JOHANNESBURG) – AngloGold Ashanti has made the difficult decision to begin
a consultation process with employees in terms of section 189 and 189A of the Labour Relations Act,
with respect to restructuring certain of its South African business units. This follows a review of the
options to safely turn around the performance of these loss-making operations.

This consultation with organised labour groups, facilitated by the Council for Conciliation, Mediation and
Arbitration (CCMA), will be aimed at safely returning the South African business to profitability, whilst
mitigating job losses.

AngloGold Ashanti signalled to stakeholders earlier this year that it would review its South African gold-
mining operations in light of heavy, and ultimately unsustainable, losses they have incurred. The
restructuring of the company’s production and cost base is necessary to protect the overall viability of
its South African business over the long-term, and to safeguard employment at viable business units in
the West Wits and Vaal River regions. The company is committed to transparency and will make the
plans and assumptions arising from this review available for scrutiny by an independent third-party,
during the CCMA process.

While all efforts will be made to limit the impact on employment to the greatest extent possible, this
restructuring contemplates some 8,500 roles across AngloGold Ashanti’s South African business, which
currently employs about 28,000 people, including contractors.

Systemic Challenges

Some of our older mines in the South African region have reached the end of their economic lives,
several decades after they started production. These mines face systemic challenges, including near-
depletion of ore reserves, increasing depth and distance from central infrastructure, declining
production profiles, and cost escalations that have continued to outpace both inflation and a subdued
gold price.

The cost performance of certain operations, notably TauTona and Kopanang, has been a clear
demonstration of these challenges, with all-in sustaining costs in the first-quarter of this year of
$1,737/oz and $2,399/oz respectively. This compared with an average gold price over that period of
$1,216/oz. Both mines also sustained significant operating losses through 2016.

In order to safeguard the long-term sustainability of its South African business, AngloGold Ashanti has
decided to embark on the following actions, subject to the outcomes of the consultation process:

    o   Place on care and maintenance the Kopanang mine, in the Vaal River region, and the Savuka
        section of the TauTona mine, in the West Wits Region. Savuka has been in operation for 59
        years, and has already been extended 10 years beyond its natural life. Kopanang Mine
        produced its first gold in 1981, 36 years ago;
     o  Evaluate the feasibility of integrating elements of the 60-year old TauTona mine into the
        neighbouring Mponeng mine;

As a consequence of these changes, we are also reviewing the associated costs at the regional level,
particularly with respect to support services and overheads.

“This is a difficult decision which follows a period of significant and – ultimately – unsustainable losses,
and also the evaluation of the options available to return our South African business to profitability,”
AngloGold Ashanti Chief Executive Officer Srinivasan Venkatakrishnan, said. “It is critical that we act
to protect the long-term sustainability of this business and the majority of our workforce. We are mindful
of the sensitivity that this situation demands, and are committed to supporting all our employees
throughout this process.”

Ends

JSE Sponsor: Deutsche Securities (SA) Proprietary Limited

Contacts

Media

Stewart Bailey                 +27 81 032 2563 / +27 11 637 6031                    sbailey@anglogoldashanti.com
Chris Nthite                   +27 11637 6031/ +27-83-301-2481                      cnthite@anglogoldashanti.com

Investors

Stewart Bailey                 +27 81 032 2563 / +27 11 637 6031                    sbailey@anglogoldashanti.com
Fundisa Mgidi                  +27 11 6376763 / +27 82 821 5322                     fmgidi@anglogoldashanti.com
Sabrina Brockman               +1 646 880 4526/ +1 646 379 2555                     sbrockman@anglogoldashanti.com

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
2016 , which was filed with the United States Securities and Exchange Commission (“SEC”). 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.


Incorporated in the Republic of South Africa Reg No: 1944/017354/06
ISIN. ZAE000043485 – JSE share code: ANG CUSIP: 035128206 – NYSE share code: AU


Website: www.anglogoldashanti.com

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