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ANGLOGOLD ASHANTI LIMITED - AngloGold Ashanti Provides Update on Measures taken in Response to COVID-19

Release Date: 27/03/2020 16:00
Code(s): ANG     PDF:  
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AngloGold Ashanti Provides Update on Measures taken in Response to COVID-19

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” or “the Group”)

NEWS RELEASE

AngloGold Ashanti Provides Update on Measures taken in Response to COVID-19

(PRESS RELEASE) – AngloGold Ashanti recognises that the COVID-19 pandemic represents an
unprecedented global challenge that requires cooperation from all members of society.

To date, we have taken a number of proactive steps to protect our employees, our host communities and
business, in line with the Company's values, guidelines and advice provided by the World Health Organization
(WHO) and with the requirements of the countries in which we operate. The health and wellbeing of our
employees and our host communities remains our key priority.

A cross-functional team, including operations, technical, finance, health, community, government relations and
other support disciplines, is helping to guide the response to the crisis. The Company has for some time
employed increased screening and surveillance of employees, stopped non-essential travel, instituted
mandatory quarantine for arriving travellers and increased hygiene awareness across its operations, in addition
to a range of other measures to mitigate the risks presented by the virus. It has also worked with local
communities to help bolster their responses to the outbreak. These initiatives have complemented government
responses in each of its operating jurisdictions.

As a precaution against the potential effects of the pandemic on our ability to secure spares and consumables,
our supply chain teams have proactively placed orders to build increased safety stocks on critical items at our
operations. Specific inventories depend on the level of risk identified in each region, lead time considerations,
and storage capacity. In general, we are targeting inventories of three to six months on primary consumables,
while recognising we have the support of strategic partnerships with key suppliers who themselves are
maintaining inventories in the respective regions for many critical items.

On 21 March 2020, following the Argentinian government’s decision to impose a nationwide lockdown
(quarantine) until 31 March 2020, including temporary travel restrictions, border closings and suspension of
most industries, Cerro Vanguardia S.A. (CVSA) was required to temporarily suspend mining activities.

On 23 March 2020, the South African government announced a 21-day nationwide lockdown, effective from
midnight on 26 March 2020, resulting in the temporary suspension of mining activities of the company’s South

                                                       
African operations particularly Mponeng, and the partial suspension of mining activities at Mine Waste
Solutions and Surface Operations.

On 26 March 2020, the State of Goiás, in Brazil, extended a set of restrictions on the operation of non-essential
business, to include mining. These restrictions are set to run through 4 April 2020. Mineração Serra Grande
S.A. will temporarily suspend its operations.

In each case, the suspension of mining activities will continue for the period during which the respective
restrictions remain in force.

The rest of AngloGold Ashanti’s mines in its diversified portfolio of 14 assets in nine countries, continue to
operate. For the sites where production has been suspended, plans for a safe and smooth ramp-up, and for
safely regaining part of the delayed production, are being developed.

“We have been proactive in positioning ourselves to respond to the impact of the outbreak,” said CEO Kelvin
Dushnisky. “We will respond quickly and work in deep partnership with stakeholders whilst doing our part in
fighting this global pandemic.”

The pandemic, if prolonged, would have a wide range of impacts, including the direct consequences of the
virus on the health of employees and communities, but also the consequent restrictions to travel and work put
in place by governments to slow its spread. There would also be other consequences, including temporary
mine site closures, and the reduced ability to effectively move people, supplies and equipment to sites amongst
others. These may cause production interruptions or delays to projects. These risks are being continually
evaluated and we have – and are developing -- the necessary contingency plans to mitigate them.

The Company had a good start to the year, and – notwithstanding an anticipated impact of 30,000oz – 40,000
oz from operations that are suspended at this stage (less than 2% of annual production) – AngloGold Ashanti
currently remains on track to meet its annual guidance. Nonetheless, given the uncertainties with respect to
future developments, including duration, severity and scope of the COVID-19 pandemic and the necessary
government responses to limiting its spread, AngloGold Ashanti has decided to withdraw its market guidance
at this time.

The Company will continue to focus on the necessary steps to protect people, work to meet production targets
and to secure the longer-term future of the business during this period of uncertainty.

AngloGold Ashanti is implementing cash conservation measures, including focused capital prioritisation and
reducing non-essential spending across the business and is well positioned to weather the current market
uncertainty. At the end of 2019, the Company had $463m of cash, $2.0bn of debt and revolving credit facilities
with $1.42bn and R4.65bn available.

The Company has drawn down $1.4bn on its US Dollar RCF to cater for the $700m bond redemption due mid-
April 2020 and to provide additional liquidity headroom. After the drawdowns, cash on hand is approximately
$1.8bn (excluding cash lock-up positions at Kibali and Sadiola, where AngloGold Ashanti’s combined share
totals about $300m). Management will continue to take a prudent and proactive approach to managing the
Company’s liquidity, which may include procuring additional credit facilities or debt over and above its current
facilities.

The Company will continue to provide updates to the market as developments unfold. For additional
information on AngloGold Ashanti’s response to COVID-19, please refer to our website.

ENDS
Johannesburg
27 March 2020

JSE Sponsor: The Standard Bank of South Africa Limited

CONTACTS

Media
Stewart Bailey                               +27 11 637 6031 / +27 81 032 2563              sbailey@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 6376763 / +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. 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.


Website: www.anglogoldashanti.com

Date: 27-03-2020 04:00:00
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