Wrap Text
Report for the six months and year ended 31 December 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” or “AGA” or the “Company”)
2019 Preliminary Results Short Form Announcement
for the six months and year ended 31 December 2019
• Strong safety performance; Fatality-free in 2019, first time in Company's history and best-ever AIFR at 3.31 (1)
• Met 2019 full year guidance: Production of 3.281Moz, record production at Kibali, Tropicana and Iduapriem; AISC $992/oz (2)
• Geita delivered highest production in 14 years
• Free cash flow before growth capital increased by 106% to $448m; Cash flow from operating activities increased by 22% to $1,047m
• Adjusted net debt to Adjusted EBITDA improved to 0.91 times; cash and cash equivalents $463m
• 3.5Moz of Ore Reserves were added in 2019 before depletion - strong progress on efforts aimed at Ore Reserve Conversion
• Obuasi achieved first gold pour on time and within budget; Phase 2 ramp up is on track
• Reached agreements to sell South African assets and the Sadiola mine in Mali
• Dividend increased by 57% to 11 US cents per share
Six months Six months Year Year
ended ended ended ended
Dec Dec Dec Dec
2019 2018 2019 2018
US Dollar / Imperial
Operating review
Gold
Produced - Total - oz (000) 1,727 1,772 3,281 3,400
Sold - Total - oz (000) 1,691 1,761 3,268 3,412
Financial review
Price received - $/oz 1,469 1,215 1,387 1,261
Total cash costs - $/oz 762 726 776 773
All-in sustaining costs - $/oz 993 936 998 976
All-in costs - $/oz 1,203 1,029 1,162 1,068
Gold income - $m 2,204 1,883 3,993 3,805
Cost of sales - $m 1,610 1,570 3,105 3,173
Total cash costs - $m 1,247 1,223 2,393 2,505
Gross profit - $m 646 362 983 772
Profit (loss) attributable to equity shareholders - $m (127) 100 (12) 133
Basic profit (loss) per ordinary share - cents/share (30) 24 (3) 32
Headline earnings - $m 259 120 379 220
Headline earnings per ordinary share - cents/share 62 29 91 53
Adjusted EBITDA - $m 1,033 756 1,723 1,480
Net cash flow from operating activities - $m 704 536 1,047 857
Free cash flow - $m 159 118 127 67
Total borrowings - $m 2,206 2,050 2,206 2,050
Cash and cash equivalents - $m 456 329 456 329
Adjusted net debt - $m 1,572 1,659 1,572 1,659
Capital expenditure - $m 496 387 814 721
$ represents US Dollar, unless otherwise stated.
Rounding of figures may result in computational discrepancies.
(1)
All Injury Frequency Rate (AIFR) is measured in injuries per million hours worked
(2)
Excludes $6/oz non-cash rehabilitation provision in Brazil guided in the third quarter of 2019
The information on this page is provided for the AngloGold Ashanti group as a whole. Following the announcement of the South Africa assets sale, the South African
operations are recorded as discontinued operations in Preliminary Condensed Financial Statements.
Certain information presented in this results announcement constitutes pro forma financial information. This information is the responsibility of the Company’s board of
directors and is presented for illustrative purposes only. Because of its nature the pro forma financial information may not fairly present the Company’s financial information,
changes in equity and results of operations or cash flows. This information has not been reviewed or audited or otherwise reported on by Ernst & Young Inc.
Dividends
The directors of AngloGold Ashanti Limited (Registration Number 1944/017354/06) declared Dividend No.121 for the year ended 31 December 2019
as detailed below. In terms of the withholding tax on dividends which became effective on 1 April 2012, the following additional information is
disclosed:
Dividends have been declared out of total reserves
Gross dividend declared per ordinary share in South African cents 165
Dividends tax rate applicable to shareholders liable to pay the dividend tax 20%
Net dividend in South African cents (where dividend tax at 20% is payable on payment date) 132
The issued ordinary share capital of AngloGold Ashanti at date of declaration is 415,301,215
AngloGold Ashanti's tax reference number 9640006608
In compliance with the requirements of Strate, given the Company's primary listing on the JSE, the salient dates for payment of the dividend are
as follows:
To holders of ordinary shares
2020
Declaration date Friday, 21 February
Currency conversion date for Australian dollars and Ghanaian cedis Monday, 9 March
Last date to trade ordinary shares cum dividend Tuesday, 10 March
Last date to register transfer of certificated securities cum dividend Wednesday, 11 March
Ordinary shares trade ex-dividend Wednesday, 11 March
Record date Friday, 13 March
Payment date Friday, 27 March
Dividends in respect of dematerialised shareholdings will be credited to shareholders' accounts with the relevant CSDP or broker.
To comply, with further requirements of Strate, share certificates may not be dematerialised or rematerialised between Wednesday, 11 March 2020
and Friday, 13 March 2020, both days inclusive. No transfers between South African, Australian and Ghana share registers will be permitted between
Monday, 9 March 2020 and Friday, 13 March 2020, both days inclusive.
To holders of CHESS Depositary Interests (CDIs)
Each CDI represents one-fifth of an ordinary share.
2020
Last date to trade ordinary shares cum dividend Wednesday, 11 March
Last date to register transfer of certificated securities cum dividend Wednesday, 11 March
Ordinary shares trade ex-dividend Thursday, 12 March
Record date Friday, 13 March
Payment date Friday, 27 March
To holders of American Depositary Shares (ADS)
Each American Depositary Share represents one ordinary share.
2020
Ex dividend on New York Stock Exchange Thursday, 12 March
Record date Friday, 13 March
Approximate date of currency conversion Friday, 27 March
Approximate payment date of dividend Monday, 6 April
Assuming an exchange rate of R15/$, the gross dividend payable per ADS, which is subject to a 20% South African withholding tax, is equivalent
to c.11 US cents. However, the actual rate of payment will depend on the exchange rate on the date for currency conversion.
To holders of Ghanaian Depositary Shares (GhDSs)
100 GhDSs represent one ordinary share
2020
Last date to trade and to register GhDSs cum dividend Wednesday, 11 March
GhDSs trade ex-dividend Wednesday, 11 March
Record date Friday, 13 March
Approximate payment date of dividend Friday, 27 March
Assuming an exchange rate of R1/¢0.3540, the gross dividend payable per share, which is subject to a 20% South African withholding tax, is
equivalent to c.0.5841 cedis. However, the actual rate of payment will depend on the exchange rate on the date for currency conversion.
AngloGold Ashanti nearly doubled free cash flow in 2019 to $127m, raised its dividend and improved leverage to below its target level after a higher
gold price and improved efficiencies helped ensure exceptional performances at a number of its key mines. The Company’s safety performance
was also the best on record.
The Company worked to deliver its strategic objectives, meeting guidance on its key operating metrics for the seventh straight year; concluding
agreements to sell its South African portfolio and the Sadiola mine in Mali; lowering debt; adding reserves at its retained assets after accounting
for depletion; and restarting its Obuasi mine in Ghana on schedule and on budget. The annual dividend increased by 74% to 165 ZAR cents per
share (approximately US 11 cents per share).
“We’re working hard to deliver on our strategy and to capture the wider margin in this strong gold price environment,” Chief Executive Officer, Kelvin
Dushnisky said. “We’re generating strong cash flow from our operations, and that’s allowing us to increase returns to shareholders, strengthen our
balance sheet and invest in our ore bodies.”
AngloGold Ashanti invested sustaining capital of $494m in 2019 and has forecast an increase to between $640m and $670m in 2020. The additional
investment will help the Company convert existing resources into additional ore reserves and increase development at its key mines. The added
reserves extend mine lives, while more development will allow greater operating flexibility, which in turn will translate into more efficient and predictable
cost and production outcomes.
Production was 3.281Moz at a total cash cost of $776/oz in the 12 months through 31 December 2019, from 3.400Moz at $773/oz in the previous
year. All-in Sustaining Cost (AISC) was $992/oz for the year ended 31 December 2019, compared to $976/oz for the previous year. Headline
earnings of US 91 cents per share, were up 72% from the previous year, while free cash flow before capital expenditure on growth projects, rose
106% to $448m.
The Company reported exceptional performances from its Geita, Kibali, Tropicana and Iduapriem mines, with production and efficiency gains partly
offset by operating challenges at its Siguiri and Sunrise Dam mines.
The balance sheet continues to improve as stronger cash flows helped with the continued reduction in Adjusted net debt. Adjusted net debt to
Adjusted EBITDA was 0.91 times at year end, below targeted levels of 1.0 times through the cycle. Adjusted net debt was 5% lower at $1.581bn
at year end, down from $1.659bn at 31 December 2018.
SECOND HALF PERFORMANCE
Production for the second half of 2019 was 1.727Moz at a total cash cost of $762/oz, compared to 1.772Moz at $726/oz for the last six months of
2018. AISC was $981/oz for the last six months of 2019, compared to $936/oz for the same period in 2018.
Adjusted EBITDA was $1,033m during the second half of 2019, compared to $756m during the second half of 2018. Free cash flow of $159m was
generated in the second half of 2019, compared to $118m for the second half of 2018.
SAFETY
AngloGold Ashanti’s safe production strategy, along with targeted safety campaigns, have helped ensure a record safety performance for the
Company. For the first time in its history, AngloGold Ashanti passed a calendar year without a workplace fatality and injury rates declined by almost
two thirds since 2012. While these are important milestones, the pursuit of zero-harm remains in sharp focus.
GUIDANCE 2020**
Production guidance for the 2020 year is estimated to be between 3.050Moz and 3.300Moz. Total cash costs are estimated to be between $775/
oz and $825/oz and AISC between $1,040/oz and $1,100/oz at average exchange rates against the US Dollar of 15.00 (South Africa Rand), 3.95
(Brazil Real), 0.70 (Australia Dollar) and 70.00 (Argentina Peso), with oil at $65/bbl average for the year, based on market expectations.
Total capital expenditure is anticipated to be between $920m and $990m, with the Company prioritising investment in growing its Ore Reserves
and improving operating flexibility by investing in Ore Reserve Development and Reserve Conversion at sites with high geological potential. The
increase in sustaining capital for 2020 includes around $30/oz to facilitate additional exploration and development. Two projects are being advanced
simultaneously in Colombia, with the completion of feasibility studies expected by year end 2020 for both Quebradona and Gramalote, the latter
now managed by B2Gold Corp.
**Both production and cost estimates assume neither operational or labour interruptions, or power disruptions, nor further changes to asset portfolio
and/or operating mines (and thus do not give effect to any of the contemplated sales in South Africa and Argentina) 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).
This short form announcement (“this Announcement”) is the responsibility of the board of directors of the Company (the "Board"), who certify that,
to the best of their knowledge and belief, there are no facts that have been omitted which would make the information false, misleading or inaccurate,
and that all reasonable enquiries to ascertain such facts have been made.
The details contained in this Announcement are only a summary of the information in the full announcement and do not contain full details of the
Company’s financial position or other relevant information about the business for the period under review. Any investment decisions by investors
and/or shareholders should therefore be based on the full announcement published on SENS on 21 February 2020 and available on the company’s
website at www.anglogoldashanti.com.
The full announcement is also available for inspection free of charge during business hours (excluding weekends and public holidays), from Monday,
24 February 2020, at the registered office of AngloGold Ashanti at 76 Rahima Moosa Street, Newtown, Johannesburg and at the offices of the
Company’s JSE sponsor, The Standard Bank of South Africa Limited, 3rd Floor East Wing | 30 Baker Street, Rosebank 2196. In addition copies of
the full announcement may be requested by emailing CompanySecretary@Anglogoldashanti.com or by phoning Fundisa Mgidi on +27 11 637 6763.
The JSE link is as follows:
https://senspdf.jse.co.za/documents/2020/jse/isse/anano/HYDec19.pdf
Johannesburg, South Africa
21 February 2020
JSE Sponsor: The Standard Bank of South Africa Limited
CONTACTS
Media
Chris Nthite +27 11 637 6388 / +27 83 301 2481
cnthite@anglogoldashanti.com
General inquiries
media@anglogoldashanti.com
Investors
Sabrina Brockman +1 646 880 4526 / +1 646 379 2555
sbrockman@anglogoldashanti.com
Yatish Chowthee: +27 11 637 6273 / +27 78 364 2080
yrchowthee@anglogoldashanti.com
Fundisa Mgidi +27 11 637 6763 / +27 82 821 5322
fmgidi@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, 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.
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.
Website: www.anglogoldashanti.com
Date: 21-02-2020 07:05:00
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