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ANGLOGOLD ASHANTI LIMITED - Market update report for the quarter ended 30 September 2019

Release Date: 28/10/2019 07:05
Code(s): ANG     PDF:  
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Market update report for the quarter ended 30 September 2019

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",  "AGA" or the "Company")   


Market update report for the quarter ended 30 September 2019 


Johannesburg, 28 October 2019 - AngloGold Ashanti is pleased to provide an operational update for the quarter ended 30 September 2019.
Detailed financial and operational results are provided on a six-monthly basis i.e. for the six-month periods ending 30 June and 31 December.

  -  Free cash flow increased by 12% to $87m in Q3 2019, a 156% improvement on Q3 2018
  -  Production increased by 3% to 825koz in Q3 2019 supporting expected production improvements in Q4 2019
  -  All-in sustaining costs rose 12% year-on-year to $1,031/oz, mainly due to an increase in total cash costs
  -  Guidance maintained - production at lower half of the range, costs at upper end of range
  -  Adjusted net debt declined by 6% in Q3 2019 to $1.646bn from Q3 2018; adjusted net debt to adjusted EBITDA ratio at 1.06 times
  -  All-injury frequency rate at 3.23 injuries per million hours worked in Q3 2019, a 24% improvement on Q3 2018
  -  Obuasi Redevelopment Project on budget and schedule for first gold pour by year-end; Phase 2 completion by the end of 2020
  -  Sales processes to streamline portfolio continue to make steady progress
  -  Gramalote JV - transfer of management to B2Gold, $13.9m to earn back to 50%, feasibility study targeted for 2020   


                                                                                                                            Nine          Nine
                                                                                          Quarter          Quarter        months        months   
                                                                                            ended            ended         ended         ended   
                                                                                              Sep              Sep           Sep           Sep   
                                                                                             2019             2018          2019          2018   
                                                                                                               US Dollar / Imperial                 
Operating review                                                                                                                                 
Gold                                                                                                                                             
Produced                                                                     - oz (000)       825              851         2,379         2,480   
Sold                                                                         - oz (000)       819              834         2,396         2,485   
Produced from retained operations                                            - oz (000)       825              851         2,379         2,429   
Financial review                                                                                                                                 
Price received                                                               - $/oz         1,464            1,202         1,356         1,274   
All-in sustaining costs                                                      - $/oz         1,031              920         1,012           986   
All-in costs                                                                 - $/oz         1,213            1,003         1,150         1,073   
Total cash costs                                                             - $/oz           786              722           790           788   
Gross profit                                                                 - $m             281              185           618           595   
Free cash inflow (outflow)                                                   - $m              87               34            55          (17)   
Adjusted net debt                                                            - $m           1,646            1,749         1,646         1,749   
Capital expenditure (including equity accounted investments)                 - $m             234              163           552           498   

$ represents US Dollar, unless otherwise stated.                                                                                                  
Rounding of figures may result in computational discrepancies.                                                                                    
The financial information on which this market update report is based has not been reviewed and reported on by the Company's external auditors.   


Published: 28 October 2019                                                                                                                        
Quarter 3 2019                                                                                                                                    


Financial and Operating Report
FINANCIAL AND CORPORATE REVIEW

Third quarter overview

Production for the third quarter ticked upwards quarter-on-quarter, underpinned by strong performances at Geita (in Tanzania) and AGA
Mineracao and Serra Grande (both in Brazil). As previously reported, production increases from Geita, Siguiri, as well as from the Australian
and Brazilian operations, are expected in the fourth quarter. The Company remains committed to its strategy of safely improving cash flows
from a simpler, higher quality portfolio, through disciplined cost management and capital allocation.

During the third quarter of 2019, the Company generated $87m of free cash flow after growth capital. This was significantly higher than the
$34m generated in the comparable quarter of last year, owing to a 22% higher gold price received and favourable working capital movements,
partially offset by lower gold sales, higher capital expenditure and operating costs, as well as the retention of cash in the Democratic Republic
of the Congo (DRC), pending remittance.

AngloGold Ashanti's operating partner at Kibali in the DRC, Barrick Gold Corporation, continues to constructively engage with the DRC
government and administration on the issues relating to the 2018 mining code, including the repatriation of funds from the DRC. Free cash
flow continued to be affected by the slower than anticipated repatriation of cash from the DRC for Kibali loan repayments. AngloGold Ashanti
received $22m (AngloGold Ashanti's attributable share) in the third quarter from off-shore accounts. Cumulative cash receipts for the nine
months ended 30 September 2019 amounted to $53m, while $177m (AngloGold Ashanti's attributable share) has not yet been repatriated
from the DRC.

Production increased 3% during the third quarter of 2019 compared to the preceding quarter, but was 3% lower year-on-year at 825,000oz
compared to 851,000oz during the same period in 2018. Production for the quarter was impacted by the planned reduction in output from Cerro
Vanguardia, which now produces fewer by-products and at lower grades, Kibali, where open-pit mining is contributing fewer ounces off the high
base achieved in the comparable quarter last year and Mponeng, which saw lower grades during the quarter. Stabilisation of the Siguiri
combination plant has proven challenging, particularly given ore variability aggravated by high rainfall and associated delays in the crushing
circuit caused by wet fines. The site team has taken remedial steps and is optimising hard-rock throughput ahead of an expected recovery in
both cost and production through the balance of the year and into 2020.

Given the lower production, total cash costs for the Company came in at $786/oz, 9% higher than $722/oz reported during the same period
in 2018. Costs year-on-year were also impacted by lower grades, inflation, lower silver by-products from Cerro Vanguardia, and higher royalties,
more than offsetting benefits from exchange rates, throughput volumes and efficiencies. All-in sustaining costs (AISC) were $1,031/oz during
the third quarter of 2019, rising 12% when compared to the third quarter of 2018, due to the planned increase in sustaining capital expenditure
together with the rise in total cash costs. AISC increased by $35/oz or 4% from the second quarter of 2019, due to the planned increase in
sustaining capital expenditure, while total cash costs decreased slightly.

The Company continues to focus on safe production across all operations, and by quarter-end achieved 541 fatality-free days. The all-injury
frequency rate (AIFR) for the quarter improved by 24% year-on-year to a near all-time low at 3.23 per million hours worked, demonstrating an
ongoing focus on safety alongside fundamental operating improvements.

Key projects remain on track and within budget. The Obuasi Redevelopment Project in Ghana remains a strategic priority for the management
team and a key area of growth for the business. Strong progress was made during the quarter and the project is on track for the first gold pour
expected at the end of 2019. The development of the underground reserve at Tropicana's Boston Shaker deposit is making steady progress.

AngloGold Ashanti, as previously communicated, has initiated processes to review divestment options for its entire business in South Africa
and separately its respective interests in Sadiola in Mali and Cerro Vanguardia in Argentina in a strategic move to streamline its portfolio,
optimise capital allocation and increase its focus on areas with the greatest long-term potential for value-adding growth. These divestment
processes are active and continue to make progress. In South Africa, the process has moved forward at a steady pace with site due diligence
by prospective bidders now complete. An update on this process can be expected by the end of the year. For Sadiola and Cerro Vanguardia,
these divestment processes have similarly moved forward and engagement with prospective bidders, including site inspections and other due
diligence, is ongoing.

In an effort to further sharpen the focus on core growth projects, the Company announced an agreement in mid-September whereby B2Gold
would assume management of the Gramalote project effective 1 January 2020 with a target to complete the feasibility study by the end of
2020. B2Gold will fund an investment and exploration programme next year valued at $13.9m to earn-in back to a 50:50 partnership.

On the exploration front, the Company remains committed to reserve conversion and increasing the mineral inventory at its operating assets,
while progressing greenfields opportunities in strategic areas, to maintain a healthy portfolio over the long term. Mine site drilling programmes
are progressing well in all areas in support of mine operations and the Ore Reserve and Mineral Resource replacement programmes. On the
generative front, activities continue in Australia, the US, Brazil and West Africa with the aim of further developing optionality in the Company's
portfolio. After a period of sub-optimal spending on underground development and reserve conversion, the Company intends to allocate
additional capital to improving reserve definition within our existing operations. This is expected to improve the lives and valuations of these
assets, while improving ore body flexibility, reducing operating variability and supporting the medium-term objective to provide guidance beyond
the Company's customary 'in-year' outlook.

Adjusted net debt declined by 6% to $1.646bn at 30 September 2019, from $1.749bn at the same time last year. The adjusted net debt to
adjusted EBITDA ratio as at 30 September 2019 was lower at 1.06 times compared with 1.2 times as at 30 June 2019 and 1.13 times as at
30 September 2018. The balance sheet remains robust, with strong liquidity comprising the largely undrawn $1.4bn US dollar RCF, approximately
R4.25bn available on the R5.65bn South African RCFs and other facilities, and cash and cash equivalents of $417m at 30 September 2019.
The Company remains committed to maintaining a flexible balance sheet with an adjusted net debt to adjusted EBITDA target of 1 time through
the cycle.

Total capital expenditure (including equity accounted investments) increased by 44% from $163m for the third quarter of 2018 to $234m for
the third quarter of 2019. This increase was largely due to growth capital expenditure at Obuasi. Total sustaining capital expenditure increased
by 3% to $144m for the third quarter of 2019, compared to $140m for the third quarter of 2018. Capital expenditure is expected to rise going
into the next financial year, mainly at Geita, Iduapriem and AGA Mineracao, as a result of increased ore reserve development and brownfields
exploration drilling, as work is done to increase mine lives, improve ore body flexibilities and reduce operating variability. The capital outlook
at Obuasi remains unchanged, as previously disclosed at half year. The overall project to achieve a production rate of 4,000tpd remains within
budget and on schedule for completion, anticipated at the end of 2020.

Comparison of the third quarter 2019 performance versus the same quarter last year is shown below:
                                                                               
                                                                                  % Increase /(decrease)
                                                            Q3 2019     Q3 2018       Q3 2019 vs Q3 2018  
Particulars                                                                                                   
Operating review Gold                                                                                                   
Gold Production (kozs)                                          825         851                      (3)   
Financial review                                                                                           
Gold price received ($/oz)                                    1,464       1,202                       22   
Total cash costs ($/oz)                                         786         722                        9   
Corporate & marketing costs ($m) (1)                             20          18                       11   
Exploration & evaluation costs ($m)                              30          25                       20   
All-in sustaining costs ($/oz) (2)                            1,031         920                       12   
All-in costs ($/oz) (2)                                       1,213       1,003                       21   
Adjusted EBITDA ($m)                                            468         355                       32   
Cash inflow from operating activities ($m)                      354         214                       65   
Free cash flow ($m)                                              87          34                      156   
Capital expenditure ($m)                                        234         163                       44   

(1)   Includes administration and other expenses.
(2)   World Gold Council standard.


2019 Guidance
                                                                              Guidance                               Notes

Production (000oz)                                                            3,250 - 3,450    A stronger fourth quarter expected for Geita, Siguiri, Australia and Brazil

Costs                       All-in sustaining costs ($/oz)                    935 - 995        See economic assumptions below
                            Total cash costs ($/oz)                           730 - 780

Overheads                   Corporate costs ($m)                              75 - 85
                            Expensed exploration and study costs ($m)         130 - 140        Including equity accounted joint ventures
                          
Capital expenditure         Total ($m)                                        850 - 920 
                            Sustaining capex ($m)                             520 - 560 
                            Non-sustaining capex ($m)                         330 - 360        Expenditure related to Obuasi, Siguiri, Tropicana, Quebradona and Mponeng

Depreciation and amortisation ($m)                                            680              
Depreciation and amortisation - included in equity accounted earnings ($m)    160              Earnings of associates and joint ventures
Interest and finance costs ($m) - income statement                            130    
Other operating expenses ($m)                                                 85               Primarily related to the costs of care and maintenance for Obuasi and South Africa


The 2019 guidance for key operating metrics, including production, costs and sustaining capital expenditure, remains on track, with production
expected in the lower half of the range and costs at the upper end of the range, excluding the non-cash impact of the change in the Brazil TSF
regulation of $6/oz to $9/oz. Non-sustaining capital expenditure was revised downwards at the half year due to the timing of some of the Obuasi
capital spend, however the overall Obuasi project budget and schedule remains intact. Economic assumptions are as follows: ZAR14.50/$,
$/A$0.70, BRL3.94/$, AP50.00/$; Brent $64/ bl.

Both production and cost estimates assume neither operational or labour interruptions, or power disruptions, nor any changes to asset portfolio
and/or operating mines (and thus do not give effect to any of the contemplated divestitures in South Africa, Argentina and Mali) 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. Accordingly, actual
results could differ from guidance and any deviation may be significant. Please refer to the Risk Factors section in AngloGold Ashanti's annual
report on Form 20-F for the year ended 31 December 2018, filed with the United States Securities and Exchange Commission (SEC).

FINANCIAL AND OPERATING REPORT

SAFETY UPDATE

The Company achieved a fatality-free period for the third quarter ended 30 September 2019. The group AIFR, the broadest measure of
workplace safety, improved 24% year-on-year: during the third quarter of 2019 AIFR was 3.23 injuries per million hours worked. For the nine
months ended 30 September 2019, AIFR was 3.49 injuries per million hours worked, compared to 5.18 in the same period in 2018. Our safe
production strategy continues at all operations, with a focus on intensifying our employees' focus on safety practices in all workplaces in an
effort to continue AngloGold Ashanti's sustainable safety improvement.

OPERATING HIGHLIGHTS

African Operations

The Continental Africa region produced 387,000oz at a total cash cost of $740/oz for the third quarter of 2019 compared to 391,000oz at a
total cash cost of $718/oz in third quarter of 2018. AISC was $900/oz for the third quarter of 2019 compared to $834/oz for the third quarter of
2018. Despite the significant increase in Iduapriem's production and a good performance from Geita, production for the third quarter of 2019
decreased by 1% compared to the third quarter of 2018 due to lower year-on-year contributions from Kibali and Siguiri.

In Ghana, Iduapriem delivered an increase in production to 73,000oz at a total cash cost of $854/oz for the third quarter of 2019 compared to
64,000oz at a total cash cost of $827/oz in the same quarter in 2018. Production improved 14% when compared to the third quarter of 2018
due to an increase in grade from Block 7 & 8 Cut 1 compared to lower grade from Block 7 & 8 Cut 3. The increase in production was also
attributable to a 3% increase in tonnage treated due to improved throughput rate following reinstallation of SAG Mill 2 pebble ports and improved
blast fragmentation/blend. Total cash costs, however, increased due to higher operating cost and higher utilisation of the stockpile compared
to the previous period, partly alleviated by increased production volume.

There will be a shutdown during the fourth quarter to effect a repair of the trunnion on the second of two SAG Mills. The first SAG Mill and both
ball mills will continue to operate during this time.

In Tanzania, Geita's production increased to 153,000oz at a total cash cost of $644/oz for the third quarter of 2019 compared to 151,000oz
at a total cash cost of $735/oz in the same period in 2018. The 1% increase in production is a result of an 8% increase in tonnes treated due to
improved year-on-year plant utilisation. This was partially offset by a 6% drop in recovered grade due to the lower open pit mining cut off grades
and alignment of milling throughput. Total cash costs decreased due to lower operating mining costs and the increase in production.

In the DRC, Kibali produced 91,000oz at a total cash cost of $586/oz for the third quarter of 2019 compared to 101,000oz at a total cash cost
of $510/oz in the same quarter in 2018. Production was 10% lower compared to the third quarter of 2018 mainly due to the planned reduction
in open pit mining as the focus shifts to sourcing ore from underground. Total cash costs consequently increased due to lower volumes of
production and higher stockpile utilisation compared to the third quarter of 2018. The increase in total cash costs was partially offset by lower
mining contractor and power costs due to increased use of hydropower during the third quarter of 2019.

In Guinea, Siguiri's production was 51,000oz at a total cash cost of $1,075/oz for the third quarter of 2019 compared to 54,000oz at a total
cash cost of $823/oz in the same quarter in 2018. Production was 6% lower year-on-year as a result of a decrease in recovered grades, despite
a 26% increase in tonnes treated during the quarter. The mine also experienced operating challenges related to the integration of the new
combination plant and processing of hard rock material. Total cash costs increased due to the lower production, higher drilling and blasting cost
due to harder material mined in Kami and Tubani pits, as well as an increase in treatment costs.

In Mali, Sadiola's production decreased by 7% to 13,000oz for the period compared to the third quarter of 2018 due to a 10% decrease in
tonnes treated as the mine continued its stockpile treatment plan. This was partially offset by improved recovered grades from 3W and FE3
mining areas. Total cash cost increased by 2% to $927/oz due to lower production.

Morila's production decreased by 14% to 6,000oz for the period compared to the third quarter of 2018 as the mining of the satellite pits was
completed. The mine continues to treat tailings material resulting in a 44% decrease in recovered grade. This was partially offset by a 28%
increase in tonnes treated in the period compared to the same period in the prior year.

The South African region produced 113,000oz at a total cash cost of $973/oz for the third quarter of 2019, a 6% decrease in production
compared to 120,000oz at a total cash cost of $894/oz for the quarter ended 30 September 2018. AISC was recorded at $1,127/oz for the third
quarter ended 30 September 2019 compared with $1,026/oz for the same period a year ago. The total cash costs increase is attributed to
lower production, inflationary pressures, partially offset by a weaker exchange rate.

At Mponeng, production was 65,000oz at a total cash cost of $967/oz for the quarter ended 30 September 2019 compared with 79,000oz at
a total cash cost of $811/oz for the quarter ended 30 September 2018. Whilst improvements in face advance at Mponeng was noted with
mining volumes consistent with the third quarter of 2018, Mponeng's production was 18% lower mainly due to lower grade. Grade challenges
were experienced due to face length availability, which was impacted by increased seismicity in the Above 120 level mining area.

Production at Mine Waste Solutions increased by 17% to 28,000oz mainly on the back of an increase in recovered grades. This was the result
of optimising the mining mix through more efficient blending of high-grade feed sources and improving metallurgical efficiencies in the processing
plants. A continued focus on cost management and improving efficiencies remains a priority, with total cash costs at $814/oz for the quarter
ended 30 September 2019 at similar levels to the same period in the prior year.

Production at Surface Operations increased by 25% to 20,000oz mainly due to improved efficiencies on tonnes delivered to the plant, the
appointment of a new contractor and higher recovered grades. As a result, total cash costs at $1,227/oz for the quarter ended 30 September
2019 reflected a marked improvement compared to the same period in the prior year at $1,424/oz.

The new carbon tax regulations in South Africa were implemented on 5 June 2019, with the first payment date on 31 July 2020. Phase 1 of
the regulations, which is applicable until the end of 2022, will have an insignificant impact on the South African operations.

International Operations

The Australia region produced 146,000oz at a total cash cost of $775/oz and an AISC of $1,066/oz for the third quarter ended 30 September
2019 compared to 148,000oz at a total cash cost of $748/oz and an AISC of $1,082/oz in the same quarter of 2018.

Production at Sunrise Dam was 60,000oz at a total cash cost of $1,153/oz for the third quarter of 2019 compared to 61,000oz at a total cash
cost of $1,013/oz in the same quarter a year ago. Production was impacted by lower underground ore tonnes, which necessitated a greater
proportion of feed from stockpiled lower-grade ore. Critical for the success at Sunrise Dam is increasing flexibility to ensure consistently high
underground tonnages are available to displace lower-grade surface stockpiles. In line with this objective, development during the period was
above budget as the larger stopes in Vogue and Cosmo East were in the process of being commissioned for production, which is expected to
result in higher underground mining volumes in the fourth quarter. In addition, drill platforms have now been established at the southern end
of the mine to access the strike and depth extensions of the Vogue orebody. Strategic drill platforms have also been established to facilitate
systematic exploration of the middle and northern regions of the property.

In line with the broader strategic drive to increase flexibility, extend the reserve life and increase ore body confidence across the portfolio, the
Company will increase the investment in brownfields exploration and ore reserve development at the mine, which will further assist in improving
the ore blend.

At Tropicana, production was 86,000oz at a total cash cost of $521/oz for the third quarter of 2019 compared to 87,000oz at $536/oz in the
same quarter of 2018. Lower mill feed grades were offset by higher mill throughput. The Boston Shaker underground project remains on
schedule with 650m of development completed during the quarter.

The Americas region produced 179,000oz at a total cash cost of $782/oz and an AISC of $1,118/oz for the third quarter of 2019, a 7% decrease
in production compared to 192,000oz at a total cash cost of $607/oz and an AISC of $817/oz in the same quarter of 2018.

In Brazil, the operations produced 123,000oz at a total cash cost of $834/oz in the third quarter of 2019 compared to 121,000oz at a total cash
cost of $687/oz in the third quarter of 2018. AISC was recorded at $1,203/oz compared to $917/oz for the same period in 2018. This 31%
increase is due to higher operating costs related to vehicle maintenance and spare parts, higher sustaining capital expenditure and inflation,
partly offset by favourable exchange rates in 2019 and higher gold production in the period.

At AGA Mineracao, production was 6% higher, at 92,000oz, when compared to the same period of the prior year, mainly due to higher ore
mined and better grades. The mine complex delivered an improvement in production compared with the previous quarter and also year-on-
year. AISC was, however, impacted by the increase in sustaining capital expenditure. At Cuiaba, the mine has experienced weaker ground
conditions in the deeper areas of the mine. To ensure safe production, a decision was taken to slow the rate of mining until the work is completed
to improve ground conditions. A similar challenge was experienced in 2012, at which time the operational and geotechnical teams employed
an enhanced support regime to negotiate the poor ground challenges and return the mine to normalised safe production levels. Operational
excellence initiatives are focused on improving development rates, to increase face length availability and create additional flexibility. It is
expected that increased development rates will improve resource confidence and create flexibility by having additional workplaces, which in
turn will help increase production to match available processing plant capacity.

At Serra Grande, production of 31,000oz was 9% lower year-on-year, reflecting lower recovered grades partly offset by higher tonnes mined
and treated.

In Argentina, Cerro Vanguardia´s gold production of 56,000oz was 21% lower than the third quarter of 2018, mainly due to planned lower
grades in line with Cerro Vanguardia's current life of mine plan. AISC was recorded at $928/oz compared to $627/oz for same period in the
prior year, due to lower by-product income derived from lower volumes of silver sold and inflationary pressures, partially offset by a higher
average silver price received, a weaker exchange rate and favourable mining-related efficiencies.

BRAZIL TSF UPDATE

As communicated on 8 August 2019, along with the first half financial and operating results, several draft bills were under consideration in
Brazil at Federal and State levels which include, amongst others, proposals for a surety bond to cover incidents related to tailings storage
facilities (TSF's), stricter requirements for approval, construction, inspection and maintenance of existing and new TSFs, a possible increase
in mining royalties and taxes, and the possible removal of existing export incentives. AngloGold Ashanti has been proactive in reviewing its
TSF deposition methodology following the Brumadinho tragedy. All seven of the Company's TSFs in Brazil received external stability declarations
ahead of the legislated 30 September 2019 deadline, and the subsequent reports must be submitted by March next year. The Brazilian operations
continued to accelerate the transition to dry stacked tailings material including, at AGA Mineracao, construction of the mobile filtration plant at
the Corrego do Sitio mine and commissioning the first filtration plant at Cuiaba. The impact of the revised rehabilitation provisions required
by the new legislation is forecast at about $20m to $28m or $37/oz to $53/oz for the Brazil operations, which equates to about $6/oz to $9/oz
at a Group level. While this provision is non-cash in nature, it will reflect in AISC at year end. This impact had not been previously factored into
guidance.

UPDATE ON CAPITAL PROJECTS

Obuasi Redevelopment Project
Work is continuing towards achieving the project's timeline for the first gold pour at the end of 2019. The overall project to achieve a production
rate of 4,000tpd remains within budget and on schedule for completion, anticipated at the end of 2020.

The Phase 1 (2,000tpd) crushing, milling and flotation sections of the plant have been commissioned. Approximately 5,000 tonnes of ore was
milled to produce sulphide concentrate for the growth of the BIOX bacteria in preparation for the start up. Refurbishment of the remainder of
the plant for Phase 1 is well advanced and full commissioning remains on track for the end of this year. The overall Phase 1 progress is at
78% completion.

Phase 2 construction (4,000tpd) remains on schedule for completion at the end of 2020 and is currently 44% complete. The engineering,
procurement and construction (including the demolition, refurbishment and new build) is ongoing, achieving progress of about 27% in the third
quarter of 2019. The overall project is at 76% complete.

Operational readiness work streams also remain on track. 3,510 metres of underground development was completed. Surface works for the
GCVS ventilation shaft commenced. Production drilling of the first stope at Sansu has commenced. Currently, there are four diamond drill rigs
operational on site, focusing on grade control and exploration.

As previously communicated, due to the later parliamentary approval of the various agreements, timing of capital spend has been adjusted.
The initial project capital for Obuasi remains around $545m, including $46m for the mining fleet purchased, of which 10% was spent in 2018,
50% is expected to be spent in 2019 and the remainder in 2020.

Boston Shaker Underground Project
The Boston Shaker underground project is on schedule with 650m of development completed during the quarter and remains on track to deliver
first gold in the second half of 2020. The project continues to progress in accordance with the mine plan and schedule, with an underground
mining team in place to execute according to plan.

EXPLORATION UPDATE

During Q3 2019, brownfields exploration activities completed 234,388m of drilling for a total expenditure for the quarter of $13.9m (capital) and
$14.2m (expensed).

Greenfields exploration and target generation during Q3 2019 was completed in Australia, Brazil, United States and West Africa with 27,248m
of drilling and total expenditure of $7.4m.

In Australia, exploration took place in the Laverton District on both tenements (AngloGold Ashanti 100%) and on the Butcher Well and Lake
Carey JV tenements (AngloGold Ashanti 70%). At the Bismark prospect near Sunrise Dam (AngloGold Ashanti 70%), five diamond holes were
completed as an initial test of the Central and Eastern Zones. An intercept of 5m @ 7.1 g/t Au from 91m was returned from diamond hole
BID011 within the Central Zone. Gold mineralisation is associated with a steeply-dipping zone of quartz stockwork veins. Aircore drilling
continued in the Northern, Central and Eastern zones in order to provide better definition of these targets. Aircore hole BIA255 returned an
intercept of 19m at 1.6 g/t Au from 29m. At the Cleveland prospect (AngloGold Ashanti 100%), diamond hole CLD002 returned a best intercept
of 3m @ 6.8 g/t Au from 166m and 5m @ 2.1 g/t Au from 215m within a broad zone of anomalous gold (76m @ 0.46 g/t Au). In addition, aircore
hole CLA105 returned 22m @ 1.05 g/t Au from 28m to bottom of hole. A total of 22,527m of aircore drilling and 3,743m of diamond drilling
was completed in the Laverton district during Q3 2019.

Elsewhere in Western Australia, the results from the six diamond holes drilled at the Glandore project in Q2 2019 returned no significant assays.
In NE Queensland, drilling commenced at the Mt Clark prospect. Three diamond holes were completed for 978m and these intercepted wide
zones of complex breccias with variable sulphide content and cut by quartz veins. Assay results are pending.

In the United States, at Silicon in Nevada (option to earn-in to 100%), a ground gravity survey was completed to assist with drill hole targeting
and an Exploration Plan of Operations was submitted to the Bureau of Land Management. At Rhyolite, detailed surface mapping and rock
chip sampling continued over potential target areas. Surface gridded soil, stream sediment and rock chip sampling continued at the Transvaal
prospect.

See the detailed Exploration Update document on the Company website: www.anglogoldashanti.com for an update on both Brownfields and
Greenfields exploration programmes.

Operations at a glance
for the quarters ended 30 September 2019, 30 June 2019 and 30 September 2018
                                                                                                                                           
                                             Production       Underground milled / treated     Surface milled / treated           Open-pit treated     
                                              oz (000)                   000 tonnes                  000 tonnes                       000 tonnes       
                                    Sep-19  Jun-19   Sep-18      Sep-19   Jun-19    Sep-18      Sep-19  Jun-19   Sep-18       Sep-19   Jun-19    Sep-18

SOUTH AFRICA                           113     102      120         302      246       277       9,076   8,376    8,453            -        -         -
 Vaal River Operations                   -       -        -           -        -         -           -       -        -            -        -         -
   Kopanang                              -       -        -           -        -         -           -       -        -            -        -         -
   Moab Khotsong                         -       -        -           -        -         -           -       -        -            -        -         -
 West Wits Operations                   65      62       79         302      246       277          68      64       50            -        -         -
   Mponeng                              65      62       79         302      246       277          68      64       50            -        -         -
 Total Surface Operations               48      40       40           -        -         -       9,008   8,312    8,403            -        -         -
   First Uranium SA                     28      26       24           -        -         -       7,094   6,609    6,740            -        -         -
   Surface Operations                   20      15       16           -        -         -       1,914   1,703    1,663            -        -         -

CONTINENTAL AFRICA                     387     373      391         762      685       675           -       -        -        6,343    5,794     5,814
 DRC 
   Kibali - Attr. 45%                   91      94      101         423      378       346           -       -        -          430      472       617
 Ghana 
   Iduapriem                            73      71       64           -        -         -           -       -        -        1,375    1,330     1,341
   Obuasi                                -       -        -           -        -         -           -       -        -            -        -         -
 Guinea 
   Siguiri - Attr. 85%                  51      55       54           -        -         -           -       -        -        2,430    1,946     1,926
 Mali   
   Morila - Attr. 40%                    6       7        7           -        -         -           -       -        -          603      479       470
   Sadiola - Attr. 41%                  13      13       14           -        -         -           -       -        -          471      487       523
 Tanzania 
   Geita                               153     133      151         339      307       329           -       -        -        1,034    1,080       937
 
AUSTRALIA                              146     158      148         613      705       698           -       -        -        2,001    1,831     1,702
   Sunrise Dam                          60      64       61         613      705       698           -       -        -          426      343       309
   Tropicana - Attr. 70%                86      94       87           -        -         -           -       -        -        1,575    1,488     1,393
 
AMERICAS                               179     168      192         970      964       986           -       -        -          337      288       235
 Argentina 
   Cerro Vanguardia - Attr. 92.50%      56      56       71          95       88        79           -       -        -          215      222       234
 Brazil 
   AngloGold Ashanti Mineracao          92      88       87         630      655       630           -       -        -            -        -         -
   Serra Grande                         31      24       34         245      221       276           -       -        -          122       66         1
 
Total                                  825     801      851       2,647    2,600     2,636       9,076   8,376    8,453        8,681    7,913     7,751

                                                             Underground Recovered grade        Surface Recovered grade       Open-pit Recovered grade
                                                                         g/tonne                        g/tonne                          g/tonne
                                                                Sep-19   Jun-19   Sep-18        Sep-19  Jun-19   Sep-18         Sep-19  Jun-19   Sep-18

SOUTH AFRICA                                                      6.63     7.68     8.77          0.17    0.15     0.15              -       -        -
 Vaal River Operations                                               -        -        -             -       -        -              -       -        -
   Kopanang                                                          -        -        -             -       -        -              -       -        -
   Moab Khotsong                                                     -        -        -             -       -        -              -       -        -
 West Wits Operations                                             6.63     7.68     8.77          0.50    0.55     0.61              -       -        -
   Mponeng                                                        6.63     7.68     8.77          0.50    0.55     0.61              -       -        -
 Total Surface Operations                                            -        -        -          0.17    0.15     0.15              -       -        -
   First Uranium SA                                                  -        -        -          0.12    0.12     0.11              -       -        -
   Surface Operations                                                -        -        -          0.32    0.25     0.30              -       -        -

CONTINENTAL AFRICA                                                5.72     5.40     5.58             -       -        -           1.21    1.36     1.45
 DRC 
   Kibali - Attr. 45%                                             5.38     5.07     6.38             -       -        -           1.27    2.17     1.52
 Ghana 
   Iduapriem                                                         -        -        -             -       -        -           1.66    1.66     1.48
   Obuasi                                                            -        -        -             -       -        -              -       -        -
 Guinea 
   Siguiri - Attr. 85%                                               -        -        -             -       -        -           0.65    0.87     0.87
 Mali   
   Morila - Attr. 40%                                                -        -        -             -       -        -           0.28    0.42     0.50
   Sadiola - Attr. 41%                                               -        -        -             -       -        -           0.88    0.84     0.85
 Tanzania 
   Geita                                                          6.15     5.82     4.73             -       -        -           2.59    2.19     3.35
 
AUSTRALIA                                                         2.45     2.39     2.34             -       -        -           1.52    1.76     1.74
   Sunrise Dam                                                    2.45     2.39     2.34             -       -        -           0.87    0.91     0.82
   Tropicana - Attr. 70%                                             -        -        -             -       -        -           1.70    1.95     1.95
 
AMERICAS                                                          4.08     3.98     4.09             -       -        -           3.60    3.66     6.64
 Argentina 
   Cerro Vanguardia - Attr. 92.50%                                5.15     6.06     5.76             -       -        -           4.52    4.17     6.65
 Brazil 
   AngloGold Ashanti Mineracao                                    4.35     4.09     3.98             -       -        -              -       -        -
   Serra Grande                                                   2.97     2.85     3.87             -       -        -           1.99    1.95     3.13
 
Total                                                             4.47     4.27     4.50          0.17    0.15     0.15           1.37    1.54     1.67


                                                                                                                            Sustaining ORD / Stripping
                                                                     Total cash costs             All-in sustaining costs               capex            
                                                                            $/oz                            $/oz                          $m             
                                                                  Sep-19    Jun-19   Sep-18     Sep-19    Jun-19    Sep-18    Sep-19   Jun-19   Sep-18   

SOUTH AFRICA                                                         973     1,007      894      1,127     1,145     1,026        10       10        9   
 Vaal River Operations                                                 -         -        -          -         -         -         -        -        -   
   Kopanang                                                            -         -        -          -         -         -         -        -        -   
   Moab Khotsong                                                       -         -        -          -         -         -         -        -        -   
 West Wits Operations                                                967       971      811      1,197     1,174       972        10       10        9   
   Mponeng                                                           967       971      811      1,197     1,174       972        10       10        9   
 Total Surface Operations                                            982     1,062    1,060      1,028     1,100     1,136         -        -        -   
   First Uranium SA                                                  814       805      819        878       845       908         -        -        -   
   Surface Operations                                              1,227     1,549    1,424      1,273     1,598     1,481         -        -        -   

CONTINENTAL AFRICA                                                   740       768      718        900       899       834        13       13       19   
 DRC
   Kibali - Attr. 45%                                                586       507      510        739       627       626         3        3        1   
 Ghana 
   Iduapriem                                                         854       767      827        887       836       977         -        -        8   
   Obuasi                                                              -         -        -          -         -         -         -        -        -   
 Guinea  
   Siguiri - Attr. 85%                                             1,075     1,079      823      1,202     1,126       874         -        -        -   
 Mali 
   Morila - Attr. 40%                                              1,011     1,532    1,180      1,127     1,517     1,294         -        -        -   
   Sadiola - Attr. 41%                                               927       980      912        975       958     1,009         -        -        -   
 Tanzania
   Geita                                                             644       771      735        883     1,033       877        10       10       10   
   Non-controlling interests, exploration and other                                                                                -        -        -   
 
AUSTRALIA                                                            775       720      748      1,066       957     1,082        22       18       22   
   Sunrise Dam                                                     1,153       924    1,013      1,444     1,141     1,412         6        3        9   
   Tropicana - Attr. 70%                                             521       510      536        804       763       804        16       15       13   
   Exploration and other                                                                                                           -        -        -   

AMERICAS                                                             782       794      607      1,118     1,035       817        24       22       24   
 Argentina  
   Cerro Vanguardia - Attr. 92.50%                                   686       766      456        928       884       627         6        4        6   
 Brazil  
   AngloGold Ashanti Mineracao                                       847       788      727      1,212     1,069       924        13       12       14   
   Serra Grande                                                      760       869      587      1,152     1,279       898         5        6        4   
   Non-controlling interests, exploration and other                                                                                -        -        -   

Sub-total                                                            786       792      722      1,031       996       920        69       63       74   

   OTHER                                                                                                                           -        -        -   

Total                                                                                                                             69       63       74   

Equity accounted investments included above                                                                                                              
  
Total                                                                                                                                                    

                                                       Other sustaining capex             Non-sustaining capex              Gross profit (loss)
                                                                 $m                                $m                                 $m
                                                        Sep-19   Jun-19   Sep-18          Sep-19   Jun-19   Sep-18         Sep-19     Jun-19    Sep-18

SOUTH AFRICA                                                 5        5        5               1        1        1             17          6        27
 Vaal River Operations                                       -        -        -               -        -        -              -          -         -
   Kopanang                                                  -        -        -               -        -        -              -          -         -
   Moab Khotsong                                             -        -        -               -        -        -              -          -         -
 West Wits Operations                                        3        3        3               1        1        1             16         10        18
   Mponeng                                                   3        3        3               1        1        1             16         10        18
 Total Surface Operations                                    2        2        2               -        -        -              1        (4)         9
   First Uranium SA                                          2        1        2               -        -        -            (3)          -        13
   Surface Operations                                        -        1        -               -        -        -              4        (4)       (4)

CONTINENTAL AFRICA                                          33       21       18              77       53       22            184        111        98
 DRC
   Kibali - Attr. 45%                                       10        8        10              -        5        2             46         41        32
 Ghana 
   Iduapriem                                                 3        4        2               -        -        -             25         28        16
   Obuasi                                                    -        -        -              76       47        4              -          4         2
 Guinea  
   Siguiri - Attr. 85%                                       4        2        1               1        1       13             11          2        15
 Mali 
   Morila - Attr. 40%                                        -        -        -               -        -        -              2        (2)       (1)
   Sadiola - Attr. 41%                                       -        -        -               -        -        -              6          3         1
 Tanzania
   Geita                                                    16        7        6               -        -        -             93         34        31
   Non-controlling interests, exploration and other          -        -        -               -        -        2              1          1         2
 
AUSTRALIA                                                   13        9       21               7        4        -             61         43        26
   Sunrise Dam                                               7        4       13               -        -        -              5          6       (1)
   Tropicana - Attr. 70%                                     6        5        8               7        4        -             57         43        31
   Exploration and other                                     -        -        -               -        -        -            (1)        (6)       (4)

AMERICAS                                                    23       17       21               5        4        -             73         54        69
 Argentina  
   Cerro Vanguardia - Attr. 92.50%                           3        4        2               -        -        -             28         24        35
 Brazil  
   AngloGold Ashanti Mineracao                              16        9        8               -        -        -             31         23        21
   Serra Grande                                              4        4        7               -        -        -             12          6         9
   Non-controlling interests, exploration and other          -        -        4               5        4        -              2          1         4

Sub-total                                                   74       52       65              90       62       23

   OTHER                                                     1        -        1               -        -        -              -          1       (3)

Total                                                       75       52       66              90       62       23            335        215       217

Equity accounted investments included above                                                                                  (54)       (43)      (32)
  
Total                                                                                                                         281        172       185


Development Sampling
for the quarter ended 30 September 2019
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
                                                                        (total)*        metres        thickness (cm)            Avg. g/t   Avg. cm.g/t
SOUTH AFRICA
WEST WITS
Mponeng
Ventersdorp Contact reef                                                   1,769           436                 65.90               28.91      1,905.00

CONTINENTAL AFRICA
Geita
Nyankanga                                                                  2,065           617                500.00                3.65             -
Star and Comet + Ridge 8                                                   1,085           231                350.00                1.46             -

AMERICAS
AngloGold Ashanti Mineracao
Mina de Cuiaba                                                             3,121           931                 86.00                5.78             -
Lamego                                                                     1,090           957                 80.00                1.56             -
Corrego do Sitio Mina I                                                    2,692           673                     -                2.29             -
Serra Grande 
Mina III                                                                   1,800         5,754                100.00                3.46             -
Mina Nova/PQZ                                                                995         3,351                100.00                2.16             -
Palmeiras                                                                    522         1,628                 100.0                2.12             -
CVSA
Cerro Vanguardia                                                           1,712           975                 400.0                6.50             -

Statistics are shown in imperial units                                  Advanced                                        Sampled
                                                                            feet       Sampled         Avg. ore body                  gold
                                                                        (total)*          feet    thickness (inches)           Avg. oz/t  Avg. ft.oz/t
SOUTH AFRICA
WEST WITS
Mponeng
Ventersdorp Contact reef                                                   5,805         1,430                 25.94                0.84          1.82

CONTINENTAL AFRICA
Geita
Nyankanga                                                                  6,776         2,023                196.85                0.11            -
Star and Comet + Ridge 8                                                   3,560          759                 137.80                0.04            -

AMERICAS
AngloGold Ashanti Mineracao
Mina de Cuiaba                                                            10,239         3,054                 33.86                0.17            -
Lamego                                                                     3,576         3,140                 31.50                0.05            -
Corrego do Sitio Mina I                                                    8,832         2,207                     -                0.07            -
Serra Grande
Mina III                                                                   5,905        18,878                 39.37                0.10            -
Mina Nova/PQZ                                                              3,263        10,995                 39.37                0.06            -
Palmeiras                                                                  1,714         5,341                 39.37                0.06            -
CVSA
Cerro Vanguardia                                                           5,615         3,197                157.48                0.19            -

* This includes total "on-reef" and "off-reef" development metres


Administration and corporate 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:
The Standard Bank of South Africa Limited

Auditors: Ernst & Young Inc.

Offices
Registered and Corporate
76 Rahima Moosa Street
Newtown 2001
(PO Box 62117, Marshalltown 2107)
South Africa
Telephone: +27 11 637 6000
Fax: +27 11 637 6624

Australia
Level 23, AMP Building
140 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 773400
Fax: +233 303 778155

Directors
Executive
KPM Dushnisky§ (Chief Executive Officer)
KC Ramon^ (Chief Financial Officer)

Non-Executive
SM Pityana^ (Chairman)
AM Ferguson*
AH Garner#
R Gasant^
NP January-Bardill^
M Ramos^
MDC Richter#
RJ Ruston~
JE Tilk§

* British            § Canadian            #American
~ Australian         ^South African

Officers
Ria Sanz
Executive Vice President
General Counsel, Compliance and Company Secretary

Investor Relations contacts
Sabrina Brockman
Telephone: +1 646 880 4526
Mobile: +1 646 379 2555
E-mail: sbrockman@anglogoldashanti.com

Yatish Chowthee
Telephone: +27 11 637 6273
Mobile: +27 78 364 2080
E-mail: yrchowthee@anglogoldashanti.com

Fundisa Mgidi
Telephone: +27 11 637 6763
Mobile: +27 82 821 5322
E-mail: fmgidi@anglogoldashanti.com

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

Share Registrars

South Africa
Computershare Investor Services (Pty) Limited
Rosebank Towers, 15 Biermann Avenue
Rosebank, 2196
(PO Box 61051, Marshalltown 2107)
South Africa
Telephone: 0861 100 950 (in SA)
Fax: +27 11 688 5218
E-mail: queries@computershare.co.za
Website: www.computershare.com

Australia
Computershare Investor Services Pty Limited
Level 11, 172 St George's Terrace
Perth, WA 6000
(GPO Box D182 Perth, WA 6840)
Australia
Telephone: +61 8 9323 2000
Telephone: 1300 55 2949 (Australia only)
Fax: +61 8 9323 2033

Ghana
NTHC Limited
Martco House
Off Kwame Nkrumah Avenue
PO Box K1A 9563 Airport
Accra
Ghana
Telephone: +233 302 235814/6
Fax: +233 302 229975

ADR Depositary
BNY Mellon (BoNY)
BNY Shareowner Services
PO Box 30170
College Station, TX 77842-3170
United States of America
Telephone: +1 866-244-4140 (Toll free in USA) or
  +1 201 680 6825 (outside USA)
E-mail: shrrelations@cpushareownerservices.com
Website: www.mybnymdr.com

Global BuyDIRECTSM
BoNY maintains a direct share purchase and dividend
reinvestment plan for ANGLOGOLD ASHANTI.
Telephone: +1-888-BNY-ADRS

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 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 2018, which has been 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.

The financial information contained in this document has not been reviewed or reported on by the Company's external auditors.

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.



Date: 28/10/2019 07:05:00
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