ANGLOGOLD ASHANTI LIMITED
Registration No. 1944/017354/06
Incorporated in the Republic of South Africa
Share codes:
ISIN: ZAE000043485
JSE: ANG
LSE: (Shares) AGD
LES : (Dis) AGD
NYSE: AU
ASX: AGG
GhSE: (Shares) AGA
GhSE: (GhDS) AAD
Report
for the quarter ended 31 March 2014
- Production 1.06Moz improving 17% year-on-year and well ahead of 950Koz-1Moz
guidance
- Total cash costs decrease 14% year-on-year to $770/oz, beating guidance of
$800/oz-$850/oz
- All-in-sustaining cost (AISC) decreased by 22% year-on-year to $993/oz on
lower capex, cash costs and overhead costs
- Adjusted headline earnings $119m, or 29 US cents per share
- International operations see 34% rise in output to 765,000oz year-on-year,
and 22% drop in AISC to $972/oz
- South Africa production down 11% to 290,0000z year-on-year, while AISC
improves to $975/oz or 14%
- Tropicana contributes 84,0000z at total cash cost of $495/oz; AISC of
$694/oz
- Kibali contributes 51,000oz at total cash cost of $538/oz; AISC of $572/oz
- Net debt stable at $3.105bn
- Cash flow from operating activities stable year-on-year at $350m, despite
21% lower gold price
Quarter Year
Ended ended Ended ended
Mar Dec Mar Dec
2014 2013 2013 2013
US dollar /
Imperial
Operating review
Gold
Produced - oz (000) 1,055 1,229 899 4,105
Price received (1) - $/oz 1,290 1,271 1,636 1,401
All-in sustaining cost (2) - $/oz 993 1,015 1,275 1,174
All-in cost (2) - $/oz 1,114 1,233 1,622 1,466
Total cash costs (3) - $/oz 770 748 894 830
Financial review
Adjusted gross profit (4) - $m 312 376 434 1,351
Gross profit - $m 296 404 434 1,445
Profit (loss) attributable to equity - $m 39 (305) 239 (2,230)
shareholders
- cents/share 10 (75) 62 (568)
Headline earnings (loss) - $m 38 (276) 259 78
- cents/share 9 (68) 67 20
Adjusted headline earnings (5) - $m 119 45 113 599
- cents/share 29 11 29 153
Dividends per ordinary share - cents/share - - 5 5
Cash flow from operating activities - $m 350 431 356 1,246
Capital expenditure - $m 274 477 512 1,993
Notes: (1) Refer to note C "Non-GAAP disclosure" for the definition. $
represents US dollar, unless otherwise stated.
(2) Refer to note D "Non-GAAP disclosure" for the definition. Rounding of
figures may result in computational discrepancies.
(3) Refer to note E "Non-GAAP disclosure" for the definition.
(4) Refer to note B "Non-GAAP disclosure" for the definition.
(5) Refer to note A "Non-GAAP disclosure" for the definition.
Certain statements contained in this document, other than statements of
historical fact, including, without limitation, those concerning the economic
outlook for the gold mining industry,
expectations regarding gold prices, production, cash costs, cost savings and
other operating results, return on equity, productivity improvements, growth
prospects and outlook of AngloGold
Ashanti's operations, individually or in the aggregate, including the
achievement f project milestones, commencement and completion of commercial
operations of certain of AngloGold
Ashanti's exploration and production projects and the completion of
acquisitions and dispositions, 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 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 Form 20-F
that was filed with the United States Securities and Exchange Commission
("SEC") on 14 April 2014. 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
rel ase any revisions to these forward-looking statements to reflect events or
circumstances after the date
hereof or to reflect the occurrence of unanticipated events, except to the
extent required by applicable law. All subsequent written or oral
forward-looking statements attributable to
AngloGold Ashanti or any person acting on its behalf are qualified by the
cautionary statements herein.
This communication may contain certain "Non-GAAP" financial measures.
AngloGold Ashanti utilises certain Non-GAAP performance measures and ratios in
managing its business. Non-
GAAP financial measures should be viewed in addition to, and not as an
alternative for, the reported operating results or cash flow from operations
or any other measures of performance
prepared in accordance with IFRS. In addition, the presentation of these
measures may not be comparable to similarly titled measures other companies
may use. AngloGold Ashanti posts
information that is important to investors on the main page of its website at
www.anglogoldashanti.com and under the "Investors" tab on the main page. This
information is updated regularly.
Investors should visit this website to obtain important information about
AngloGold Ashanti.
Operations at a glance
for the quarter ended 31 March 2014
Adjusted
Production All-in Total
sustaining cash
costs(1) costs
(2)
gros
profit
(loss)
(3)
Year- Year- Year- Year-
on-year Qtr on Qtr on-year Qtr on on-year Qtr on on-year Qtr on
Qtr Qtr Qtr
oz (000) % % $/oz % Variance % $/oz % Variance % $m $m Variance $m
Variance(4) Variance(5) (4) Variance (4) Variance (4) Variance
(5) (5) (5)
SOUTH 290 (11) (14) 975 (14) (3) 797 (11) 4 60 (94) (46)
AFRICA
Vaal River 102 (11) (20) 1,020 (25) (6) 851 (16) 12 9 (26) (24)
Operations
Great 17 (29) (15) 1,200 (3) (7) 1,123 1 9 1 (8) (1)
Noligwa
Kopanang 29 (38) (26) 1,320 7 2 1,074 15 18 (15) (35) (16)
Moab 55 28 (18) 802 (49) (10) 646 (39) 8 23 18 (7)
Khotsong
West Wits 128 (15) (17) 925 (14) 1 735 (13) 3 34 (48) (31)
Operations
Mponeng 76 (18) (18) 930 - (3) 709 - 8 25 (38) (11)
TauTona 52 (10) (16) 916 (31) 8 774 (28) (4) 9 (11) (20)
Total Surface 60 (5) 3 1,000 20 (4) 836 4 (9) 16 (20) 7
Operations
First Uranium 24 - (11) 1,243 41 20 831 1 (1) 1 (5) (2)
SA
Surface 36 (5) 20 840 5 (19) 839 6 (14) 15 (16) 9
Operations
INTERNATIONAL 765 34 (14) 972 (22) (2) 759 (15) 2 270 (39) (1)
OPERATIONS
CONTINENTAL 374 36 (19) 1,042 (24) (8) 808 (19) (4) 119 (10) 2
AFRICA
DRC
Kibali - 51 - 28 572 - 22 538 - 14 25 25 3
Attr. 45% (6)
Ghana
Iduapriem 45 10 (33) 898 (30) (22) 716 (32) (26) 20 5 13
Obuasi 53 8 (16) 1,530 (41) (26) 1,234 (29) (9) (3) 27 12
Guinea
Siguiri - 70 13 (7) 961 (18) (14) 800 (20) (5) 25 (15) 8
Attr. 85%
Mali
Morila - 10 (33) (17) 1,598 81 11 1,099 42 29 1 (11) (2)
Attr. 40% (6)
Sadiola - 19 - (21) 1,404 7 (14) 1,262 14 (16) (6) (15) 4
Attr. 41% (6)
Yatela - 4 (60) (50) 2,062 53 (7) 1,804 37 (6) (3) (5) 5
Attr. 40% (6)
Namibia
Navachab 16 14 (11) 785 (22) 49 771 (14) 47 9 3 (5)
Tanzania
Geita 106 61 (31) 1,048 19 34 631 62 16 47 (22) (42)
Non-
controlling
interests,
Exploration 3 (1) 4
and other
AUSTRALASIA 155 154 (8) 929 (50) 22 779 (40) 22 59 56 29
Australia
Sunrise Dam 71 16 (30) 1,095 (37) 36 1,066 (15) 56 16 9 (7)
Tropicana - 84 - 27 694 - 8 495 - (13) 48 48 39
Attr. 70%
Exploration (5) (1) (3)
and other
AMERICAS 236 1 (10) 879 (5) (1) 668 - 5 92 (85) (33)
Argentina
Cerro 58 5 (5) 800 (16) (6) 644 10 (4) 28 (14) 6
Vanguardia -
Attr. 92.50%
Brazil
AngloGold 94 2 (22) 805 (14) (10) 619 (10) 19 38 (28) (31)
Ashanti
Mineração
Serra Grande 32 - (6) 1,027 8 7 799 1 12 6 (17) (6)
United States
of America
Cripple Creek 52 (5) 11 1,015 37 (6) 699 9 (15) 18 (25) (4)
& Victor
Non-
controlling
interests,
Exploration 2 - 2
and other
OTHER (1) 4 (6)
Sub-total 1,055 17 (14) 993 (22) (2) 770 (14) 3 329 (128) (53)
Equity (17) 6 (11)
accounted
investments
included
above
AngloGold 312 (122) (64)
Ashanti
(1) Refer to note D under "Non-GAAP disclosure" for definition
(2) Refer to note E under "Non-GAAP disclosure" for definition
(3) Refer to note B under "Non-GAAP disclosure" for definition
(4) Variance March 2014 quarter on March 2013 quarter - increase (decrease).
(5) Variance March 2014 quarter on December 2013 quarter - increase
(decrease).
(6) Equity accounted joint ventures.
Rounding of figures may result in computational discrepancies.
Financial and Operating Report
OVERVIEW FOR THE QUARTER
FINANCIAL AND CORPORATE REVIEW
First-quarter adjusted headline earnings (AHE) were $119m, or 29 US cents per
share in the three months to
31 March 2014, compared with $45m, or 11 US cents per share the previous
quarter, and $113m, or 29 US cents per share a year earlier, in the first
quarter of 2013.
Net profit attributable to equity shareholders for the first quarter of 2014
was $39m, compared to a loss of
$305m the previous quarter which was mainly impacted by year-end adjustments,
including impairments of
assets and inventory write-downs.
Operational performance for the first quarter was strong with both production
and costs coming in better than
market guidance. Production was 1,055koz at an average total cash cost of
$770/oz, compared to 1,229koz
at $748/oz the previous quarter and 899koz at $894/oz in the first quarter of
2013. Guidance for the quarter
was 950,000oz to 1Moz at a total cash cost of $800-850/oz. Year-on-year costs
benefited from higher
output, weaker currencies and early indications are that a range of cost
saving initiatives continue to gain
traction.
"Our operators have delivered another strong performance and we continue to
manage costs aggressively,"
Srinivasan Venkatakrishnan, Chief Executive Officer of AngloGold Ashanti,
said. "There's still plenty of work
to do, but with a strong team intact, a good foundation, and some significant
wins under our belt, we remain
focused on continuing to deliver positive results to our shareholders under
tough market conditions."
Production from most operating regions improved year-on-year, with the
exception of the South Africa
region, where marginal and loss-making ounces have been removed from the
production profile. In addition,
the region struggled with a slower-than-anticipated start-up after the
Christmas break and interruptions from
safety-related stoppages, following a challenging safety performance for the
gold sector in general. South
African operations saw an 11% year-on-year decline to 290,000oz; Continental
Africa improved 36% to
374,000oz; the Americas gained 1% to 236,000oz; and Australia was up 154% to
155,000oz. Continental
Africa and Australia both benefited from the inclusion of new mining
operations at Kibali and Tropicana,
respectively.
Total cash costs dropped $124/oz compared to the previous year, from $894/oz
to $770/oz, reflecting
significant improvements from a combination of cost saving initiatives,
currency weakness, removal of some
marginal and loss-making production and higher output in some areas. All-in
sustaining costs (AISC) were
$993/oz, a 22% improvement year-on-year, and 2% lower than the previous
quarter. The year-on-year
decline in AISC was due to lower sustaining capital expenditure, improved cash
costs and further reductions
in corporate costs ($40m) and sustaining exploration expense ($21m).
Total capital expenditure during the first quarter was $274m (including equity
accounted joint ventures),
compared with $477m the previous quarter and $512m in the first quarter of
last year. This was somewhat
less than planned, due to lower expenditure at Kibali and Obuasi, and is
expected to increase in the second
quarter. Of the total capital spent, project capital expenditure during the
quarter amounted to $115m. Free
cash flow improved from negative $82m in the previous quarter to positive $9m
in the first quarter, reflecting
improved costs, higher production and a reduction in capital expenditure.
At the end of the first quarter of 2014, Net Debt was US$3.095bn compared to
$3.105bn in the previous
quarter, resulting in a Net Debt to EBITDA ratio of 1.9 times.
Summary of quarter-on-quarter operating and cost improvements:
Performance update Q1 2014 Q1 2013 Year on year
change
Gold price received ($/oz) 1,290 X 1,636 (21%)
Gold Production (Koz) 1,055 - 899 17%
Total cash costs ($/oz) 770 - 894 14%
Corporate and marketing costs* ($m) 25 - 65 62%
Exploration and evaluation costs ($m) 30 - 79 62%
Capital expenditure ($m) 274 - 512 47%
All-in sustaining costs**($/oz) 993 - 1,275 22%
EBITDA ($m) 476 X 509 (7)%
Cash flow from operating activities ($m) 350 X 356 (2%)
Free cash flow ($m) 9 - (227) 104%
* including administration and other expenses.
** World Gold Council Standard, excludes stockpiles written off.
CORPORATE UPDATE
Addressing the underperformance at Obuasi remains a key objective for
AngloGold Ashanti. The
restructuring and repositioning of the Obuasi mine, which is subject to a
number of consents, is likely to
result in a substantial reduction in the mine's existing operations and
significant work force redundancies
(which we currently estimate at approximately $220m). Fundamental changes
aimed at systemically
addressing legacies, infrastructure, development constraints and cash outflows
are being implemented. This
work includes initiatives to reduce the footprint of the operation and
consolidate infrastructure, lower
operating costs by introducing a mechanised mining approach in the future,
together with the refurbishment
and automation of the processing plant. AngloGold Ashanti is also considering
other strategic alternatives
for its Ghana business.
UPDATE ON CAPITAL PROJECTS
At the Kibali project, a joint venture between state-owned Sokimo (10%),
AngloGold Ashanti (45%) and
operator Randgold Resources (45%), steady production ramp-up progress is being
made by Randgold
Resources. The development work on the twin declines is progressing well with
a total of 1,656 lateral
metres achieved this quarter, exceeding plans by 12.5%. The major equipment on
the sulphide circuit has
been commissioned. The focus for the next quarter is the completion and
handover of the metallurgical plant
and the commissioning of the Nzoro hydro power station. The vertical shaft
also continues to make good
progress and is currently 5% ahead of plan. The vertical shaft depth at the
end of March was 416.5m.
Attributable production for the 2014 year is expected to be between 251,000oz
and 269,00oz at total cash
cost of $488/oz-$520/oz. The mineral resources and ore reserves are 10.0Moz
and 5.2Moz, respectively.
In the Americas, the Mine Life Extension project at CC&V (approved cost over 5
years $585m) is
progressing in line with expectations. The mill schedule is expected for
commissioning/production ramp up in
the fourth quarter of 2014, with full production in 2016. The valley heap
leach facility (VLF) and associated
gold recovery plant is on schedule to commission mid-2016. The planned
VLF2/ADR2 schedule is as
follows:
- 2014: complete lining the pregnant solution pond area (triple lined area)
and start filling the area for
the ADR2 (the gold recovery plant) platform.
- 2015: complete the ADR2 pad, construct the ADR2 plant (the gold recovery
plant), and start loading
ore on the first phase VLF2.
- 2016: commission ADR2/VLF2 and start gold production.
As of 31 March 2014, overall project progress is 40% complete. The mill is
largely on schedule to
commission and we expect first gold production in the fourth quarter of 2014.
Overall construction of the mill
is 65% complete. To help facilitate the construction completion schedule,
additional man-shifts, including
nights and weekends, have been added to the work schedule. Mill concrete
construction is 73% complete
with 8.4k cubic-yards of concrete poured. A total of 1,150 tons of steel has
been erected, which represents
35% of the total steel planned. Capex for this project is estimated at $585m
with $234m having already
been spent to date. The mineral resources and ore reserves are 10.8Moz and
4.7Moz respectively.
UPDATE ON COST OPTIMISATION AND PORTFOLIO REVIEW
Cost optimisation and portfolio review: A process remains underway to improve
efficiency across the
business, to identify long-term savings in the company's direct and indirect
cost base and to optimise capital
expenditure. The previously announced Project 500 initiatives remain on track
with the goal to realise
approximately $500m of cost savings by the end of the year. Achievements
resulting from these initiatives
include:
- In the South Africa region, savings of $56m were achieved during the first
quarter through the deferment
of capital expenditure, labour and contractor reductions, a decrease in
consumables, the implementation
of service optimisation strategies and a critical review of commodity as well
as services related contracts.
- Contract mining rates at Siguiri and Sadiola were reduced by between 16% and
14%, delivering an
annual saving of $15m.
- Negotiated a 32% lower Cyanide price for our West African operations, for an
annual saving of roughly
$10.5m. In addition, improved Cyanide control systems have further lowered
costs at various sites,
including Iduapriem, which has cut usage by 30%.
- The number of global expatriates on mine sites has been reduced resulting in
a saving of more than
$10m at the end of March 2014.
- Consumable stores inventory in Continental Africa has been reduced by $52m
since July 2013.
- Sunrise Dam has improved Jumbo development rates from 330m to 420m per
month, coupled with a
10% improvement in trucking productivities over the same period. This has
allowed the mine to
demobilise two trucks and one loader, reducing monthly fixed costs by about
A$195,000 and reducing
quarter-on-quarter variable unit rates by A$300,000.
SA LABOUR UPDATE
The two-year wage agreement which was concluded in September 2013 was
implemented and backdated to
1 July 2013. AMCU voluntarily participated in the negotiations but has not yet
signed the wage agreement.
However, the wage agreement was extended to all employees regardless of their
respective union affiliations
and as a result the AMCU members have all benefited from the resulting wage
increase.
On 30 January 2014, the Labour Court declared a threatened AMCU strike
unprotected, with an interim
interdict for any possible strike. AMCU has since applied for a court hearing
on a constitutional point which
will be heard on 5 June 2014. The current interdict remains in place until the
matter is finalised in the Labour
Court.
TECHNOLOGY AND INNOVATION UPDATE
During the first quarter, the Technology Innovation Consortium has continued
to make considerable progress
in prototype development pertaining to certain key technologies that seek to
establish the base for a safe,
automated mining method intended for selective use at AngloGold Ashanti's
deep-level underground mining
operations in South Africa.
Although achieving good results in several of the drilling aspects
(skin-to-skin), the challenge to mine "All the
Gold" with no dilution remains. In this respect, work is currently focused on
drilling an overlapping hole
configuration.
Progress on various aspects of the Tau Tona project are as follows:
Reef Boring (Stoping): In the first quarter, four single-pass (660mm) holes
were drilled. In line with our
efforts to test and extract all the gold, holes 18, 19 and 20 have been
drilled directly adjacent to (`skin-to-
skin') previously drilled and backfilled holes. The overall results proved to
be successful and the data
gathered together with the knowledge of the ground conditions will be applied
to enhance drilling of new
holes. In addition, the production drilling sequence is also being tested and
the results obtained will be
applied to the production site once drilling commences. Hole 21 was drilled as
the first hole in this
sequence.
Site Equipping: Site equipping, opening up and development of the 2014
production sites is progressing
according to schedule. The first production site at TauTona mine will go live
in the second quarter, followed
by a site at Great Noligwa and a second site at TauTona, during the second
quarter.
Potential drilling sites for 2015 production have been identified. Labour
recruitment, development and
equipping are in progress.
Machine Manufacturing: The medium reef (width 40-80cm) Atlantis Mark 3 machine
was delivered at the
TauTona mine to align with the production start-up schedule in the second
quarter. Machine manufacturing
is continuing with the next machines to be delivered in accordance with the
respective production start-up
schedules at the other business units.
Ultra High Strength Backfill (UHSB): Construction of the underground backfill
plant is in progress and is on
schedule to coincide with the start-up of the first production site in the
second quarter at TauTona mine. A
replica of the underground production site mixers have been constructed on
surface to confirm the mixing
cycles and also to gather information to automate the underground plant to
ensure operational readiness.
Ore body Knowledge and Exploration: Trial 4, aimed at achieving a hole depth
of 150m at 8m/hr, was
completed during the quarter and a total of 5 holes were drilled. The results
obtained were promising as
they reached the required depth and speed. Surveying of the holes has
commenced where the Gyro will be
tested for hole deflection, the camera for geological structure and lastly the
Gamma for reef intersection.
The strategy for the second quarter of 2014 is to test a different drilling
technique (rotary percussion drilling)
using the same drilling system with the aim to compare the speed and accuracy
of results. In the latter part
of the year, we expect the team will continue with reverse circulation tests
incorporating a new high pressure
compressor with the objective of achieving a hole depth of 300m at 8m/hr.
SAFETY
The All-Injury Frequency Rate (AIFR) improved 3% compared to the first quarter
of 2013. The safety focus
continues on Major Hazard Management through identification and monitoring of
critical controls and High
Potential Incidents (HPIs) with a view of enhancing organisational learning
and institutionalising change in
order to improve our safety record progress going forward. Given that the
occurrence of HPIs in the past
correlates with fatal incidents experienced by the business, they used as
learning opportunities to prevent
future occurrences.
Kopanang made history on 10 March 2014 as it became the first AngloGold
Ashanti mine in South Africa to
achieve three million fatality-free shifts.
Tragically, however, two incidents resulted in three fatalities during the
quarter. There was one fatality at the
Mponeng project in South Africa, and two contractor employees lost their lives
at a single incident at the
Cuiabá mine in Brazil whilst renovating the vent shaft.
OPERATING HIGHLIGHTS
The South African operations produced 290,000oz during the first quarter at a
total cash cost of $797/oz,
compared to 327,000oz at a total cash cost of $896/oz, the same quarter a year
ago. The region was
negatively impacted by safety-related disruptions, which resulted in lost
production of approximately
19,000oz, coupled with the slow ramp-up to production subsequent to the
year-end break. The all-in
sustaining costs for the region at $975/oz during the quarter reflects a 14%
improvement compared to
$1,129/oz during the same period a year ago. Overall performance of Ore
Reserve Development (ORD) from
the region was impacted during the quarter as a result of the stoppages,
particularly at Mponeng and
Kopanang.
At the West Wits operations, the first quarter performance was adversely
affected by a continued increase in
seismic activity and safety stoppages. Production for the first quarter was
128,000oz at total cash cost of
$735/oz compared to 151,000oz at $845/oz achieved a year ago. The 13% decrease
in cash costs for the
West Wits operations is testimony to the vigorous cost optimisation measures
that have been implemented.
Mponeng reflected a 29% rise in yield compared to the same quarter last year
as a result of targeting
reduced stope-widths and reduced intake of waste tonnages, which increased
overall grade.
Vaal River operations saw a decrease in production in the first quarter to
102,000oz at a total cash cost of
$851/oz compared to the 114,000oz at a total cash cost of $1,014/oz a year
ago. Kopanang was hardest hit
as production was severely impacted by safety stoppages by the regulator on
the back of engineering
constraints and a power outage from the Eskom main substation. Moab Khotsong
once again saw an
increase in average recovered grade. This favourable yield was achieved
through a reduction in dilution due
to a decrease in stope width and higher average reef grade being mined.
Despite the decline in production,
costs were closely managed. Moab Khotsong was the lowest cost producer for the
South African region at a
total cash cost of $646/oz and all-in sustaining cost of $802/oz.
Production at Surface operations in the first quarter was 60,000oz at a total
cash cost of $836/oz, compared
to 63,000oz at $805/oz a year ago. The operations were negatively affected by
severe rainfalls and load
shedding by Eskom. Grades reflected minimal improvement specifically at Mine
Waste Solutions where
operations shifted to reclamation sites with lower gold recovery rates.
Inclement weather conditions, logistical
and safety challenges were encountered with the commissioning of the uranium
circuit at Mine Waste
Solutions, which will not only allow uranium production, but also improve gold
recovery rates. The
commissioning is now scheduled to be completed in the second quarter of 2014.
The Continental Africa Region production during the first quarter was
374,000oz at a total cash cost
$808/oz, with production 36% higher than the same quarter last year (17%
higher excluding Kibali). The all-
in sustaining costs for the region were $1,042/oz.
In Ghana, Obuasi's production was 53,000oz at a total cash cost of $1,234/oz,
compared to 49,000oz at a
total cash cost of $1,742/oz a year ago reflecting an improvement in tonnage
throughput. Operations during
the quarter experienced extended power interruptions which limited access to
higher grade areas. Total cash
costs saw the benefit of cost savings, particularly on labour rationalisation.
Iduapriem's production was 45,000oz at a total cash cost of $716/oz, compared
to 41,000oz a year ago.
Total cash costs decreased by 32% to $716/oz compared to $1,052 in the same
quarter a year ago, mainly
due to lower volumes being mined and an increase in the processing of
stockpiled ore.
At Geita, in Tanzania, production in the first quarter was 106,000oz compared
to 66,000oz in the same
quarter a year ago, when production was affected by the replacement of the SAG
mill. While production was,
however, impacted by downtime associated with SAG and Ball mill relining work,
this work was done in less
time than anticipated, allowing for strong reported tonnage throughput
together with consistent high recovery
and feed grade. Total cash costs at $631/oz benefited from lower mining
contractor costs.
In the Republic of Guinea, Siguiri's production was 70,000oz at a total cash
cost of $800/oz compared to
62,000oz at $998/oz in the same quarter a year ago. The operation has achieved
its ninth consecutive
quarter of exceeding planned quarterly production targets as it continues to
focus on improved planning to
increase volumes and achieve further cost savings resulting from improved
operating efficiencies.
In the DRC, Kibali's production was 51,000oz at a total cash cost of $538/oz.
Production is 28% higher than
the previous quarter as a result of a 51% increase in tonnage throughput as
the operation continues to ramp
up to capacity after commissioning in the previous quarter.
In the Americas, production during the first quarter was 236,000oz, at total
cash cost of $668/oz compared
to 234,000oz at a total cash costs of $668/oz a year ago. In Brazil, AngloGold
Ashanti Mineração production
was 94,000oz at a total cash cost of $619/oz in the first quarter of 2014
compared to 92,000oz at $689/oz in
the same quarter a year ago. At Cuiabá, which is a part of the AngloGold
Ashanti Mineração complex, higher
grades helped to offset the lower tonnage rates that were a result of fleet
availability constraints and
disruptions following the fatal accident at the mine. Total cash costs
benefited from lower cost of equipment
maintenance and general expenses as a result of work associated with Project
500. Serra Grande
maintained production at 32,000oz at a total cash cost of $799/oz compared to
a year ago.
Production at Cripple Creek & Victor, in the US, was 52,000oz at a total cash
costs of $699/oz compared to
55,000oz at total cash cost of $643/oz a year ago. The lower production and
higher costs can be attributed
to lower grades and a slight decrease in the strip ratio. Stockpiling
continues at the operation with both leach
grade and mill grade material, to ensure that production can commence at the
mill as soon as it is online.
Approximately 383k tons of ~0.06oz/t has been stockpiled year to date for the
mill.
In Argentina, Cerro Vanguardia´s production was 58,000oz at total cash cost of
$644/oz compared to
55,000oz at $583/oz in the same quarter a year ago. Costs at the operation
have benefitted from lower
service and maintenance costs and lower consumption of chemicals and other
materials; however this was
more than offset by lower by-product credits and an increase in local
inflation.
The Australasia region produced 155,000oz at a total cash cost of $779/oz
compared to 61,000oz at a total
cash cost of $1,302/oz a year ago significantly benefitting from the Tropicana
ramp-up. The all-in sustaining
cost for the region was $929/oz. At Sunrise Dam, production was 71,000oz at a
total cash cost of $1,066/oz
compared to 61,000oz at $1,247/oz a year ago. The quarter experienced
favourable mill throughput and
recovery rates, with the mine now operating exclusively underground. A total
of 168m of underground capital
development and 2,347m of operational development were completed during the
quarter. Four RC rigs were
operating underground, producing positive results to support a large
bulk-mining opportunity of
approximately 3g/t, for 2014 and beyond; two stopes of approximately 200,000t
and 175,000t were identified.
The underground ore production for the month of March was 211,000t, surpassing
200,000t for the first time,
whilst mill throughput averaged 10,156 t/day, with a recovery rate of 87.2%.
At Tropicana, despite wet weather conditions, production progressed well,
delivering 84,000oz at a total cash
cost of $495/oz. As planned, production was 27% higher than the 66,000oz
produced in the previous
quarter, with commensurate cost benefit. The processing plant achieved the
commissioning ramp-up target
of 95% availability at design ore throughput levels within six months, as
planned. Major rainfall flooded a
portion of the mine access road during the quarter, but alternative road
access was arranged without any
loss of production. Tropicana is a joint venture between 70% AngloGold Ashanti
and 30% Independence
Group NL. Production for the first three years is expected to be between
470,000oz and 490,000oz. Total
cash costs are estimated at between A$590/oz and A$630/oz. Mineral resources
and ore reserves are
2.6Moz and 5.4Moz, respectively.
EXPLORATION
Total expensed exploration and evaluation costs (including technology) during
the first quarter, inclusive of
expenditure at equity accounted joint ventures, was $34m ($8m on Brownfield,
$12m on Greenfield and
$14m on pre-feasibility studies), compared with $92m during the same quarter
the previous year.
Greenfields exploration activities were undertaken in three countries;
Australia, Colombia and Guinea, while
minor work was also completed in Brazil.
In Colombia, exploration continued at the Nuevo Chaquiro target, Quebradona
project, in joint venture with
B2Gold (AngloGold Ashanti 86.2%). In January drilling was restarted with a
single diamond drilling rig,
continuing to deepen CHA-48 to a final depth of 1500m. A significant zone of
mineralisation was intersected
over 800m downhole with intense disseminations and veins of chalcopyrite
associated with an early quartz
diorite intrusive. Hole CHA-49 drilled in the opposite direction on another
target intersected over 400m of
less intense mineralisation. A second diamond rig has been mobilised to site
to test the northwest extension
of the mineralised zone intersected in hole CHA-48. Regional evaluations and
reconnaissance continues on
AGA's large tenement package in Colombia.
In Australia, airborne EM surveys were completed early in the first quarter at
the Tropicana JV (AngloGold
Ashanti 70%), the results of which have identified two priority bedrock
conductors which will be followed up
with ground EM and drilling. Further encouraging results were returned from
the first pass diamond drilling at
Madras prospect approximately 25km south of the Tropicana Gold Mine. Follow-up
RC, diamond and aircore
drilling programs are being designed for execution in the second quarter 2014.
At the Nyngan JV (AngloGold
Ashanti 70% of earnings), induced polarisation (IP) geophysical surveying was
completed over a third target
area during the quarter. Processing and interpretation of the IP results is
now complete for the three targets
surveyed to date. Access negotiations with local land owners continue ahead of
planned ground geophysics
(IP) scheduled for the second quarter.
In South Africa, four deep surface drilling sites were in operation during the
quarter, one on the Moab
Khotsong Mine and three at Mponeng (WUDLs). Percussion drilling commenced for
MZA10 and the hole is
currently at 402m. This hole is targeted to provide value information in the
lower reaches of the early gold
portion of Project Zaaiplaats.
At UD51, the long deflection design to intersect the VCR was completed and
intersected thin VCR. Short
deflection drilling has commenced. Redrill at UD59 has advanced to 2,349.8m
and at UD60 to 1,412.7m.
Pilot drilling (656m) has been completed at UD58 and site establishment has
started with rigging
commencing early in the next quarter.
In Tanzania at Geita Gold Mine drilling focused on infill drilling programs
for Nyankanga Cut 8, Geita Hill
West and Geita Hill East. A total of 6,292m were drilled. A series of very
thick high grade intersection were
obtained from Matandani area and work is ongoing to understand the full upside
implications of these
intersections.
In Guinea, exploration work continued in Blocks 2,3 and 4 (AngloGold Ashanti
85%) with 3,269m of reverse
circulation drilling and 73.8 km of IP surveying completed at Kounkoun (Block
3) and 1,237m of
reconnaissance diamond drilling completed at Kouremale (Block 4). At Kounkoun,
drilling aimed to test the
continuity of mineralisation between KK1 and KK2 along the
turbidite/chlorite-magnetite-shale contact. The
drilling in this KK1-KK2 Gap showed significant encouraging results. At
Kouremale, drilling tested north-striking
structural features delineated by IP and geochemical surveys. The results at
Kouremale were disappointing
and no further work will be required on those targets. Field work on Block 2
consisted of surface mapping of a
newly discovered gold occurrence.
Detailed information on the exploration activities and studies both for
brownfields and greenfields is available
on the AngloGold Ashanti website (www.anglogoldashanti.com).
OUTLOOK
Gold production for the second quarter of 2014 is estimated at 1,020koz to
1,060koz. Total cash costs are
estimated at between $830/oz to $865/oz at an average exchange rate of
R10.64/$, BRL2.28/$, A$0.93/$
and AP8.15/$ and brent at $105/barrel.
Both production and cost estimates assume no labour interruptions, together
with the ongoing successful
ramp-up at Kibali and Tropicana, and no changes to asset portfolio / operating
mines. Other known or
unpredictable factors could also have material adverse effects on our future
results. Please refer to the Risk
Factors section in AngloGold Ashanti's Form 20-F for the year ended 31
December 2013 that was filed with
the United States Securities and Exchange Commission ("SEC") on 14 April 2014
and available on the
SEC's homepage at http://www.sec.gov.
Group income statement
Quarter Quarter Quarter Year
ended ended ended ended
March December March December
2014 2013 2013 2013
US Dollar million Notes Reviewed Reviewed Reviewed Audited
Revenue 2 1,359 1,474 1,518 5,708
Gold income 2 1,324 1,418 1,463 5,497
Cost of sales 3 (1,012) (1,042) (1,029) (4,146)
(Loss) gain on non-hedge derivatives and other
commodity contracts (16) 28 - 94
Gross profit 296 404 434 1,445
Corporate administration, marketing and other
expenses (25) (37) (65) (201)
Exploration and evaluation costs (30) (41) (79) (255)
Other operating expenses 4 (5) (1) (1) (19)
Special items 5 (7) (90) (25) (3,410)
Operating profit (loss) 229 235 264 (2,440)
Dividends received 2 - - 5 5
Interest received 2 6 15 6 39
Exchange (loss) gain (6) 4 (4) 14
Finance costs and unwinding of obligations 6 (71) (75) (64) (296)
Fair value adjustment on $1.25bn bonds (70) (12) - (58)
Fair value adjustment on option component of
convertible bonds - - 9 9
Fair value adjustment on mandatory convertible
bonds - - 137 356
Share of associates and joint ventures' profit (loss) 7 19 4 (7) (162)
Profit (loss) before taxation 107 171 346 (2,533)
Taxation 8 (62) (426) (98) 333
Profit (loss) for the period 45 (255) 248 (2,200)
Allocated as follows:
Equity shareholders 39 (305) 239 (2,230)
Non-controlling interests 6 50 9 30
45 (255) 248 (2,200)
Basic earnings (loss) per ordinary share (cents) (1) 10 (75) 62 (568)
Diluted earnings (loss) per ordinary share (cents) (2) 10 (75) 27 (631)
(1) Calculated on the basic weighted average number of ordinary shares.
(2) Calculated on the diluted weighted average number of ordinary shares.
Rounding of figures may result in computational discrepancies.
The reviewed financial statements for the three months ended 31 March 2014
have been prepared by the corporate accounting staff
of AngloGold Ashanti Limited headed by Mr John Edwin Staples, the Group's
Chief Accounting Officer. This process was supervised
by Mr Richard Duffy, the Group's Chief Financial Officer and Mr Srinivasan
Venkatakrishnan, the Group's Chief Executive Officer.
The financial statements for the quarter ended 31 March 2014 were reviewed,
but not audited, by the Group's statutory auditors, Ernst
& Young Inc. A copy of their unmodified review report is available for
inspection at the company's head office.
Group statement of comprehensive income
Quarter Quarter Quarter Year
ended ended ended ended
March December March December
2014 2013 2013 2013
US Dollar million Reviewed Reviewed Reviewed Audited
Profit (loss) for the period 45 (255) 248 (2,200)
Items that will be reclassified subsequently
to profit or loss:
Exchange differences on translation of foreign
operations (8) (85) (149) (433)
Share of associates and joint ventures other
comprehensive income 1 - - -
Net gain (loss) on available-for-sale financial 9 - (14) (23)
assets
Release on impairment of available-for-sale
financial assets (note 5) - 1 12 30
Release on disposal of available-for-sale
financial assets - - - (1)
Cash flow hedges - 1 - 1
Deferred taxation thereon (4) - 2 2
5 2 - 9
Items that will not be reclassified
subsequently to profit or loss:
Actuarial gain recognised 10 52 - 69
Deferred taxation thereon (2) (15) - (20)
8 37 - 49
Other comprehensive income (loss) for the
period, net of tax 6 (46) (149) (375)
Total comprehensive income (loss) for the
period, net of tax 51 (301) 99 (2,575)
Allocated as follows:
Equity shareholders 45 (351) 90 (2,605)
Non-controlling interests 6 50 9 30
51 (301) 99 (2,575)
Rounding of figures may result in computational discrepancies.
Group statement of financial position
As at As at As at
March December March
2014 2013 2013
US Dollar million Notes Reviewed Audited Reviewed
ASSETS
Non-current assets
Tangible assets 4,885 4,815 7,743
Intangible assets 269 267 321
Investments in associates and joint ventures 1,391 1,327 1,172
Other investments 141 131 147
Inventories 617 586 647
Trade and other receivables 25 29 48
Deferred taxation 169 177 93
Cash restricted for use 37 31 29
Other non-current assets 50 41 7
7,584 7,404 10,207
Current assets
Other investments 1 1 -
Inventories 1,016 1,053 1,196
Trade and other receivables 380 369 466
Cash restricted for use 14 46 34
Cash and cash equivalents 525 648 680
1,936 2,117 2,376
Non-current assets held for sale 15 158 153 -
2,094 2,270 2,376
TOTAL ASSETS 9,678 9,674 12,583
EQUITY AND LIABILITIES
Share capital and premium 11 7,024 7,006 6,752
Accumulated losses and other reserves (3,884) (3,927) (1,204)
Shareholders' equity 3,140 3,079 5,548
Non-controlling interests 35 28 21
Total equity 3,175 3,107 5,569
Non-current liabilities
Borrowings 3,569 3,633 2,844
Environmental rehabilitation and other 1,013 963 1,174
provisions
Provision for pension and post-retirement 152 152 205
benefits
Trade, other payables and deferred income 14 4 2
Derivatives - - 1
Deferred taxation 579 579 1,063
5,327 5,331 5,289
Current liabilities
Borrowings 235 258 662
Trade, other payables and deferred income 793 820 929
Bank overdraft 22 20 -
Taxation 67 81 134
1,117 1,179 1,725
Non-current liabilities held for sale 15 59 57 -
1,176 1,236 1,725
Total liabilities 6,503 6,567 7,014
TOTAL EQUITY AND LIABILITIES 9,678 9,674 12,583
Rounding of figures may result in computational discrepancies.
Group statement of cash flows
Quarter Quarter Quarter Year
ended ended ended ended
March December March December
2014 2013 2013 2013
US Dollar million Reviewed Reviewed Reviewed Audited
Cash flows from operating activities
Receipts from customers 1,288 1,479 1,492 5,709
Payments to suppliers and employees (905) (1,039) (1,084) (4,317)
Cash generated from operations 383 440 408 1,392
Dividends received from joint ventures - - 8 18
Taxation refund 37 22 - 23
Taxation paid (70) (31) (60) (187)
Net cash inflow from operating activities 350 431 356 1,246
Cash flows from investing activities
Capital expenditure (220) (372) (384) (1,501)
Interest capitalised and paid - - (4) (5)
Expenditure on intangible assets - (17) (13) (68)
Proceeds from disposal of tangible assets - 2 - 10
Other investments acquired (26) (18) (32) (91)
Proceeds from disposal of other investments 24 15 27 81
Investments in associates and joint ventures (40) (78) (150) (472)
Proceeds from disposal of associates and joint - - 5 6
ventures
Loans advanced to associates and joint (4) (14) - (41)
ventures
Loans repaid by associates and joint ventures - - - 33
Dividends received - - 5 5
Proceeds from disposal of subsidiary - - 1 2
Reclassification of cash balances to held for (1) 3 - (2)
sale assets
Decrease (increase) in cash restricted for use 26 (13) - (20)
Interest received 4 10 4 23
Net cash outflow from investing activities (237) (482) (541) (2,040)
Cash flows from financing activities
Proceeds from borrowings 15 238 146 2,344
Repayment of borrowings (171) (260) (95) (1,486)
Finance costs paid (81) (42) (37) (200)
Revolving credit facility and bond transaction - (2) (5) (36)
costs
Dividends paid - (11) (26) (62)
Net cash (outflow) inflow from financing (237) (77) (17) 560
activities
Net decrease in cash and cash equivalents (124) (128) (202) (234)
Translation (1) (5) (10) (30)
Cash and cash equivalents at beginning of 628 761 892 892
period
Cash and cash equivalents at end of period (1) 503 628 680 628
Cash generated from operations
Profit (loss) before taxation 107 171 346 (2,533)
Adjusted for:
Movement on non-hedge derivatives and other 16 (28) - (94)
commodity contracts
Amortisation of tangible assets 175 202 213 775
Finance costs and unwinding of obligations 71 75 64 296
Environmental, rehabilitation and other 8 (37) (8) (66)
expenditure
Special items 6 88 30 3,399
Amortisation of intangible assets 9 9 2 24
Fair value adjustment on $1.25bn bonds 70 12 - 58
Fair value adjustment on option component of - - (9) (9)
convertible bonds
Fair value adjustment on mandatory convertible - - (137) (356)
bonds
Interest received (6) (15) (6) (39)
Share of associates and joint ventures' (19) (4) 7 162
(profit) loss
Other non-cash movements 13 7 4 25
Movements in working capital (67) (40) (98) (250)
383 440 408 1,392
Movements in working capital
Increase in inventories (10) (26) (39) (142)
(Increase) decrease in trade and other (36) 20 18 69
receivables
Decrease in trade, other payables and deferred (21) (34) (77) (177)
income
(67) (40) (98) (250)
(1) The cash and cash equivalents balance at 31 March 2014 includes a bank
overdraft included in the statement of financial position as part of current
liabilities of $22m (31 December 2013 : $20m)
Rounding of figures may result in computational discrepancies.
Group statement of changes in equity
Equity holders of the parent
Share Cash Available Foreign
capital Other Accumu- flow for Actuarial currency Non-
and capital lated hedge sale (losses) translation controlling Total
US Dollar million premium reserves losses reserve reserve gains reserve Total interests equity
Balance at 31 December 6,742 177 (806) (2) 13 (89) (562) 5,473 21 5,494
2012
Profit for the period 239 239 9 248
Other comprehensive (149) (149) (149)
loss
Total comprehensive - - 239 - - - (149) 90 9 99
income (loss)
Shares issued 10 10 10
Share-based payment (4) (4) (4)
for share awards net
of exercised
Dividends paid (21) (21) (21)
Dividends of - (9) (9)
subsidiaries
Translation (11) 5 (1) 7 - -
Balance at 31 March 6,752 162 (583) (2) 12 (82) (711) 5,548 21 5,569
2013
Balance at 31 December 7,006 136 (3,061) (1) 18 (25) (994) 3,079 28 3,107
2013
Profit for the period 39 39 6 45
Other comprehensive 1 5 8 (8) 6 6
income (loss)
Total comprehensive - 1 39 - 5 8 (8) 45 6 51
income (loss)
Shares issued 18 18 18
Share-based payment (2) (2) (2)
for share awards net
of exercised
Translation 1 (2) (1) 1 -
Balance at 31 March 7,024 136 (3,024) (1) 23 (17) (1,002) 3,140 35 3,175
2014
Rounding of figures may result in computational discrepancies.
Segmental reporting
AngloGold Ashanti's operating segments are being reported based on the
financial information provided to the Chief Executive
Officer and the Executive Committee, collectively identified as the Chief
Operating Decision Maker (CODM). Individual members
of the Executive Committee are responsible for geographic regions of the
business.
Quarter ended Year ended
Mar Dec Mar Dec
2014 2013 2013 2013
Reviewed Reviewed Reviewed Audited
US Dollar million
Gold income
South Africa 372 428 507 1,810
Continental Africa 532 568 535 2,111
Australasia 215 192 94 441
Americas 310 335 395 1,425
1,429 1,523 1,532 5,787
Equity-accounted investments (105) (105) (69) (290)
included above
1,324 1,418 1,463 5,497
Gross profit (loss)
South Africa 44 134 154 510
Continental Africa 119 117 129 475
Australasia 59 30 3 (9)
Americas 92 125 177 516
Corporate and other (1) 5 (5) -
313 410 457 1,492
Equity-accounted investments (17) (6) (23) (47)
included above
296 404 434 1,445
Capital expenditure
South Africa 51 112 101 451
Continental Africa 127 212 208 839
Australasia 27 35 101 285
Americas 69 116 98 410
Corporate and other - 2 4 8
274 477 512 1,993
Equity-accounted investments (53) (94) (97) (411)
included above
221 383 415 1,582
Quarter ended Year ended
Mar Dec Mar Dec
2014 2013 2013 2013
Quarter ended Year ended
Mar Dec Mar Dec
2014 2013 2013 2013
Reviewed Reviewed Reviewed Audited
oz (000)
Gold production
South Africa 290 339 327 1,302
Continental Africa 374 460 276 1,460
Australasia 155 169 61 342
Americas 236 262 234 1,001
1,055 1,229 899 4,105
As at As at As at
Mar Dec Mar
2014 2013 2013
Reviewed Audited Reviewed
US Dollar million
Total assets (1)
South Africa 2,311 2,325 2,841
Continental Africa 3,478 3,391 5,092
Australasia 1,059 1,108 1,143
Americas 2,263 2,203 2,880
Corporate and other 567 647 627
9,678 9,674 12,583
(1) During the 2013 year, pre tax impairments, derecognition of goodwill,
tangible assets and intangible assets of $3,029m
were accounted for in South Africa ($311m), Continental Africa ($1,776m) and
the Americas ($942m).
Rounding of figures may result in computational discrepancies.
Notes
for the quarter ended 31 March 2014
1. Basis of preparation
The financial statements in this quarterly report have been prepared in
accordance with the historic cost convention except for
certain financial instruments which are stated at fair value. The group's
accounting policies used in the preparation of these
financial statements are consistent with those used in the annual financial
statements for the year ended 31 December 2013
except for the adoption of new standards and interpretations effective 1
January 2014 (note 14).
The financial statements of AngloGold Ashanti Limited have been prepared in
compliance with IAS 34, IFRS as issued by the
International Accounting Standards Board, the South African Institute of
Chartered Accountants Financial Reporting Guides as
issued by the Accounting Practices Committee, Financial Reporting
Pronouncements as issued by Financial Reporting Standards
Council, JSE Listings Requirements and in the manner required by the South
African Companies Act, 2008 (as amended) for the
preparation of financial information of the group for the quarter ended 31
March 2014.
2. Revenue
Quarter ended Year ended
Mar Dec Mar Dec
2014 2013 2013 2013
Reviewed Reviewed Reviewed Audited
US Dollar million
Gold income 1,324 1,418 1,463 5,497
By-products (note 3) 29 39 34 149
Dividends received - - 5 5
Royalties received 1 1 10 18
(note 5)
Interest received 6 15 6 39
1,359 1,474 1,518 5,708
3. Cost of sales
Quarter ended Year ended
Mar Dec Mar Dec
2014 2013 2013 2013
Reviewed Reviewed Reviewed Audited
US Dollar million
Cash operating costs 762 858 785 3,274
By-products revenue (29) (39) (34) (149)
(note 2)
733 819 751 3,125
Royalties 37 32 37 129
Other cash costs 8 10 9 43
Total cash costs 778 861 797 3,297
Retrenchment costs 6 16 6 69
Rehabilitation and 22 (11) 11 18
other non-cash costs
Production costs 806 866 814 3,384
Amortisation of 175 202 213 775
tangible assets
Amortisation of 9 9 2 24
intangible assets
Total production costs 990 1,077 1,029 4,183
Inventory change 22 (35) - (37)
1,012 1,042 1,029 4,146
4. Other operating expenses
Quarter ended Year ended
Mar Dec Mar Dec
2014 2013 2013 2013
Reviewed Reviewed Reviewed Audited
US Dollar million
Pension and medical 2 (1) 4 14
defined benefit provisions
Claims filed by former 3 2 (3) 5
employees in respect of
loss of employment,
work-related accident
injuries and diseases,
governmental fiscal claims
and care and maintenance
of old tailings operations
5 1 1 19
Rounding of figures may result in computational discrepancies.
5. Special items
Quarter ended Year ended
Mar Dec Mar Dec
2014 2013 2013 2013
Reviewed Reviewed Reviewed Audited
US Dollar million
Net impairment and derecognition - 36 1 3,029
of goodwill, tangible assets and
intangible assets (note 9)
Impairment of other investments - 1 12 30
(note 9)
Net loss (profit) on disposal 2 - 1 (2)
and derecognition of land,
mineral rights, tangible assets
and exploration properties (note
9)
Royalties received (note 2) (1) (1) (10) (18)
Indirect tax expenses and legal - 7 3 43
claims
Inventory write-off due to fire - - 14 14
at Geita
Insurance proceeds on Geita - (13) - (13)
claim
Legal fees and other costs 6 16 4 19
related to contract termination
and settlement costs
Write-down of stockpiles and - 38 - 216
heap leach to net realisable
value and other stockpile
adjustments
Retrenchment and related costs - 4 - 24
Write-off of a loan - - - 7
Costs on early settlement of - 2 - 61
convertible bonds and
transaction costs on the $1.25bn
bond and standby facility
7 90 25 3,410
For the quarter ended 31 March 2014, no asset impairments were recognised.
During the year ended 31 December 2013,
impairment, derecognition of assets and write-down of inventories to net
realisable value and other stockpile adjustments include
the following:
The group reviews and tests the carrying value of its mining assets (including
ore-stock piles) when events or changes in circumstances
suggest that the carrying amount may not be recoverable.
During June 2013, consideration was given to a range of indicators including a
decline in gold price, increase in discount rates and reduction
in market capitalisation. As a result, certain cash generating units'
recoverable amounts, including Obuasi and Geita in Continental Africa,
Moab Khotsong in South Africa and CC&V and AGA Mineração in the Americas, did
not support their carrying values and impairment
losses were recognised during 2013. The impairment for these cash generating
units represents 80% of the total impairment and range
between $200m and $700m per cash generating unit on a post taxation basis.
The indicators were re-assessed as at 31 December 2013 as part of the annual
impairment assessment cycle and the conditions that arose
in June 2013 were largely unchanged and no further cash generating unit
impairments arose.
Investments
in equity-
accounted
associates Inventory Pre-
Tangible Intangible and joint write-down tax Post-
and
Goodwill asset asset Asset ventures other sub Taxation tax
stockpile
impairment impairment impairment derecognition(1) impairment adjustments total thereon total
US Dollar million
South Africa - 308 - 3 - 1 312 (86) 226
Continental - 1,651 20 105 179 200 2,155 (564) 1,591
Africa
Americas 15 910 16 1 - 15 957 (333) 624
Corporate and - - - - 16 - 16 - 16
other
15 2,869 36 109 195 216 3,440 (983) 2,457
(1) The Mongbwalu project in the Democratic Republic of the Congo was
discontinued.
Impairment calculation assumptions as at 31 December 2013 - goodwill, tangible
and intangible assets
Management assumptions for the value in use of tangible assets and goodwill
include:
- the gold price assumption represents management's best estimate of the
future price of gold. A long-term real gold price of $1,269/oz
(2012: $1,584/oz) is based on a range of economic and market conditions that
will exist over the remaining useful life of the assets.
Annual life of mine plans take into account the following:
- proved and probable Ore Reserve;
- value beyond proved and probable reserves (including exploration potential)
determined using the gold price assumption referred to
above;
- In determining the impairment, the real pre-tax rate, per cash generating
unit ranged from 6.21% to 18.07% which was derived from
the group's weighted average cost of capital (WACC) and risk factors
consistent with the basis used in 2012. At 31 December 2013,
the group WACC was 7.30% (real post-tax) which is 204 basis points higher than
in 2012 of 5.26%, and is based on the average
capital structure of the group and three major gold companies considered to be
appropriate peers. In determining the WACC for
each cash generating unit, sovereign and mining risk factors are considered to
determine country specific risks. Project risk has been
applied to cash flows relating to certain mines that are deep level
underground mining projects below infrastructure in South Africa and
Continental Africa region;
- foreign currency cash flows translated at estimated forward exchange rates
and then discounted using appropriate discount rates for
that currency;
- cash flows used in impairment calculations are based on life of mine plans
which range from 3 years to 47 years; and
- variable operating cash flows are increased at local Consumer Price Index
rates.
Rounding of figures may result in computational discrepancies.
Impairment calculation assumptions - Investments in equity-accounted
associates and joint ventures
The impairment indicators considered the quoted share price, current financial
position and decline in anticipated operating results.
Included in share of equity-accounted investments' loss of $162m for the year
ended 31 December 2013 is an impairment of
$195m and an impairment reversal of $31m.
Net realisable value calculation assumptions as at 31 December 2013 -
Inventory
Impairments of $178m were raised at 30 June 2013 to net realisable value based
on a spot price of $1,200. Additional impairments of
$38m were raised at 31 December 2013 due to stockpile abandonments and other
specific adjustments. The practice of writing down
inventories to the lower of cost or net realisable value is consistent with
the view that assets should not be carried in excess of
amounts expected to be realised from their sale or use.
6. Finance costs and unwinding of obligations
Quarter Year ended
ended
Mar Dec Mar Dec
2014 2013 2013 2013
Reviewed Reviewed Reviewed Audited
US Dollar million
Finance costs 64 67 49 247
Unwinding of obligations, accretion 7 8 15 49
of convertible bonds and other
discounts
71 75 64 296
7. Share of associates and joint ventures' profit (loss)
Quarter Year ended
ended
Mar Dec Mar Dec
2014 2013 2013 2013
Reviewed Reviewed Reviewed Audited
US Dollar million
Revenue 117 117 80 334
Operating costs, special items and (99) (111) (71) (315)
other expenses
Net interest received 2 1 - 4
Profit before taxation 20 7 9 23
Taxation (1) (2) (9) (21)
Profit after taxation 19 5 - 2
Net impairment of investments in - (1) (7) (164)
associates and joint ventures (note
9)
19 4 (7) (162)
8. Taxation
Quarter Year ended
ended
Mar Dec Mar Dec
2014 2013 2013 2013
Reviewed Reviewed Reviewed Audited
US Dollar million
South African taxation
Mining tax 14 1 17 7
Non-mining tax (3) - - 1
Prior year over provision (2) (25) (1) (26)
Deferred taxation
Temporary differences (20) 13 10 (39)
Unrealised non-hedge derivatives and (4) 8 - 25
other commodity contracts
(15) (3) 25 (32)
Foreign taxation
Normal taxation 46 96 54 160
Prior year over provision (3) - - (8)
Deferred taxation(1) Temporary 33 333 17 (453)
differences
77 429 72 (301)
62 426 98 (333)
(1) Included in temporary differences under Foreign taxation in 2013, is a tax
credit relating to impairments, derecognition of assets of $915m and write-
down of inventories of $68m. In addition, in quarter four of 2013, deferred
tax assets of $270m and $60m were derecognised in Obuasi and CC&V
respectively.
9. Headline earnings (loss)
Quarter ended Year ended
Mar Dec Mar Dec
2014 2013 2013 2013
Reviewed R eviewed Reviewed Audited
US Dollar
million
The profit (loss) attributable to equity
shareholders has been adjusted by the following
to arrive at headline (loss) earnings:
Profit (loss) attributable to equity 39 (305) 239 (2,230)
shareholders
Net impairment and derecognition of goodwill, - 36 1 3,029
tangible assets and intangible assets (note 5)
Net loss (profit) on disposal and derecognition 2 - 1 (2)
of land, mineral rights, tangible assets and
exploration properties (note 5)
Impairment of other investments (note 5) - 1 12 30
Net impairment of investments in associates and - 1 7 164
joint ventures
(note 7)
Special items of associates and joint ventures - 2 - 2
Taxation - current portion - 1 - -
Taxation - deferred portion (3) (12) (1) (915)
38 (276) 259 78
Headline earnings (loss) per ordinary share 9 (68) 67 20
(cents)(1)
Diluted headline earnings (loss) per ordinary 9 (68) 32 (62)
share (cents)
(1) Calculated on the basic weighted average number of ordinary shares.
10. Number of shares
Quarter ended Year ended
Mar Dec Mar Dec
2014 2013 2013 2013
Reviewed Reviewed Reviewed Audited
Authorised number of shares:
Ordinary shares of 25 SA cents each 600,000,000 600,000,000 600,000,000 600,000,000
E ordinary shares of 25 SA cents each 4,280,000 4,280,000 4,280,000 4,280,000
A redeemable preference shares of 50 SA cents 2,000,000 2,000,000 2,000,000 2,000,000
each
B redeemable preference shares of 1 SA cent 5,000,000 5,000,000 5,000,000 5,000,000
each
Issued and fully paid number of shares:
Ordinary shares in issue 403,087,362 402,628,406 383,626,668 402,628,406
E ordinary shares in issue 697,896 712,006 1,610,376 712,006
Total ordinary shares: 403,785,258 403,340,412 385,237,044 403,340,412
A redeemable preference shares 2,000,000 2,000,000 2,000,000 2,000,000
B redeemable preference shares 778,896 778,896 778,896 778,896
In calculating the basic and diluted number of ordinary shares outstanding for the period,
the following were taken into consideration:
Ordinary shares 402,785,093 402,462,266 383,423,554 389,184,639
E ordinary shares 704,108 1,062,510 1,613,092 1,460,705
Fully vested options 2,477,845 1,477,629 2,038,229 1,979,920
Weighted average number of shares 405,967,046 405,002,405 387,074,875 392,625,264
Dilutive potential of share options 1,185,208 - 1,210,482 -
Dilutive potential of convertible bonds - - 18,140,000 12,921,644
Diluted number of ordinary shares 407,152,254 405,002,405 406,425,357 405,546,908
11. Share capital and premium
As at
Mar Dec Mar
2014 2013 2013
Reviewed Audited Reviewed
US Dollar Million
Balance at beginning of period 7,074 6,821 6,821
Ordinary shares issued 13 259 11
E ordinary shares issued and cancelled - (6) -
Sub-total 7,087 7,074 6,832
Redeemable preference shares held within the (53) (53) (53)
group
Ordinary shares held within the group - (6) (11)
E ordinary shares held within the group (10) (9) (16)
Balance at end of period 7,024 7,006 6,752
Rounding of figures may result in computational discrepancies.
12. Exchange rates
Mar Dec Mar
2014 2013 2013
Unaudited Unaudited Unaudited
ZAR/USD average for the year to date 10.82 9.62 8.91
ZAR/USD average for the quarter 10.82 10.12 8.91
ZAR/USD closing 10.52 10.45 9.21
AUD/USD average for the year to date 1.12 1.03 0.96
AUD/USD average for the quarter 1.12 1.08 0.96
AUD/USD closing 1.08 1.12 0.96
BRL/USD average for the year to date 2.36 2.16 2.00
BRL/USD average for the quarter 2.36 2.27 2.00
BRL/USD closing 2.26 2.34 2.01
ARS/USD average for the year to date 7.60 5.48 5.01
ARS/USD average for the quarter 7.60 6.07 5.01
ARS/USD closing 8.00 6.52 5.12
13. Capital commitments
Mar Dec Mar
2014 2013 2013
Reviewed Audited Reviewed
US Dollar
Million
Orders placed and outstanding on capital contracts
at the prevailing
rate of exchange(1) 379 437 1,210
(1) Includes capital commitments relating to associates and joint ventures.
Rounding of figures may result in computational discrepancies.
Liquidity and capital resources
To service the above capital commitments and other operational requirements,
the group is dependent on existing cash
resources, cash generated from operations and borrowing facilities.
Cash generated from operations is subject to operational, market and other
risks. Distributions from operations may be subject to
foreign investment, exchange control laws and regulations and the quantity of
foreign exchange available in offshore countries. In
addition, distributions from joint ventures are subject to the relevant board
approval.
The credit facilities and other finance arrangements contain financial
covenants and other similar undertakings. To the extent that
external borrowings are required, the group's covenant performance indicates
that existing financing facilities will be available to
meet the above commitments. To the extent that any of the financing facilities
mature in the near future, the group believes that
sufficient measures are in place to ensure that these facilities can be
refinanced.
14. Change in accounting policies
The following accounting standards, amendments to standards and new
interpretations have been adopted with effect from
1 January 2014:
IFRS 10, IFRS 12 and IAS 27 Amendment - Exception from consolidation for
"investment entities"
IAS 32 Amendment - Financial Instruments: Presentation, offsetting financial
assets and financial
liabilities
IAS 39 Amendment - Financial instruments, Recognition and measurement novation
of derivatives
and continuation of hedge accounting
IFRIC 21 Levies
15. Non-current assets and liabilities held for sale
Effective 30 April 2013, AngloGold Ashanti announced its plan to sell the
Navachab mine in Namibia. The Navachab gold mine is
situated close to Karibib, about 170 kilometres northwest of the Namibian
capital, Windhoek. It is included in the Continental Africa
reporting segment. The open-pit mine, which began operations in 1989, has a
processing plant that handles 120,000 metric tons a
month. The mine produced 63,000 ounces of gold in 2013 (2012: 74,000 ounces).
On 10 February 2014, AngloGold Ashanti announced that it signed a binding
agreement to sell Navachab to a wholly-owned
subsidiary of QKR Corporation Ltd (QKR). The agreement provides for an upfront
consideration based on an enterprise value of
US$110 million which will be adjusted to take into account Navachab's net debt
and working capital position on the closing date of the
transaction. The upfront consideration is payable in cash on the closing date.
In addition, AngloGold Ashanti will receive deferred
consideration in the form of a net smelter return (NSR). The NSR is to be paid
quarterly for a period of seven years following the
second anniversary of the closing date and will be determined at 2% of ounces
sold by Navachab during a relevant quarter subject to
a minimum average gold price of US$1,350 per ounce being achieved and capped
at a maximum of 18,750 ounces sold per quarter.
The transaction is subject to fulfilment of a number of conditions precedent,
including Namibian and South African regulatory and third
party approvals, which are expected to be obtained over the next several
months. Navachab is not a discontinued operation and is
not viewed as part of the core assets of the company.
16 Financial risk management activities
Borrowings
The $1.25bn bonds and the mandatory convertible bonds settled in September
2013, are carried at fair value. The convertible bonds,
settled 99.1% in August 2013 and in full in November 2013, and rated bonds are
carried at amortised cost and their fair values are
their closing market values at the reporting date. The interest rate on the
remaining borrowings is reset on a short-term floating rate
basis, and accordingly the carrying amount is considered to approximate fair
value.
As at
Mar Dec Mar
2014 2013 2013
Reviewed Audited Reviewed
Carrying amount 3,804 3,891 3,506
Fair value 3,743 3,704 3,648
Derivatives
The fair value of derivatives is estimated based on ruling market prices,
volatilities, interest rates and credit risk and includes all
derivatives carried in the statement of financial position.
Embedded derivatives and the conversion features of convertible bonds are
included as derivatives on the statement of financial
position.
The following inputs were used in the valuation of the conversion features of
the convertible bonds:
Quarter ended Quarter ended Quarter ended
Mar 2014 Dec 2013 Mar 2013
Market quoted bond price % - - 101.6
Fair value of bonds excluding conversion feature % - - 101.6
Fair value of conversion feature % - - -
Total issued bond value $m - - 732.5
The option component of the convertible bonds is calculated as the difference
between the price of the bonds including the option
component (bond price) and the price excluding the option component (bond
floor price).
Derivative assets (liabilities) comprise the following:
Assets Liabilities Assets Liabilities Assets Liabilities
non- non- non- non- non- non-
hedge hedge hedge hedge hedge hedge
accounted accounted accounted accounted accounted accounted
US Dollar million March 2014 December March 2013
2013
Embedded derivatives - - - - - (1)
Option component of convertible bonds - - - - - -
Total derivatives - - - - - (1)
The group uses the following hierarchy for determining and disclosing the fair
value of financial instruments:
Level 1: quote prices (unadjusted) in active markets for identical assets or
liabilities;
Level 2: inputs other than quoted prices included in level 1 that are
observable for the asset or liability, either directly
(as prices) or indirectly (derived from prices); and
Level 3: inputs for the asset or liability that are not based on observable
market data (unobservable inputs).
The following tables set out the group's financial assets and liabilities
measured at fair value by level within the fair value
hierarchy:
Type of instrument
Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total
Total
US Dollar million March 2014 December 2013 March 2013
Assets measured at fair
value
Available-for-sale
financial assets
Equity securities 60 - 60 47 - - 47 56 2 - 58
Liabilities measured at
fair value
Financial liabilities at
fair value through profit
or loss
Option component of - - - - - - - - - - -
convertible bonds
Embedded derivatives - - - - - - - - 1 - 1
Mandatory convertible bonds - - - - - - - 448 - - 448
$1.25bn bonds 1,400 - 1,400 1,353 - - 1,353 - - - -
Rounding of figures may result in computational discrepancies.
17. Contingencies
AngloGold Ashanti's material contingent liabilities and assets at 31 March are
detailed below:
Contingencies and guarantees
Mar Mar
2014 2013
Reviewed Restated
US Dollar million
Contingent liabilities
Groundwater pollution (1) - -
Deep groundwater pollution - Africa (2) - -
Indirect taxes - Ghana (3) 29 25
Litigation - Ghana (4) (5) (6) 97 -
ODMWA litigation (7) 211 -
Other tax disputes - AngloGold Ashanti Brasil 38 40
Mineração Ltda (8)
Sales tax on gold deliveries - Mineração Serra Grande 107 161
S.A.(9)
Other tax disputes - Mineração Serra Grande S.A.(10) 17 19
Tax dispute - AngloGold Ashanti Colombia S.A.(11) 191 156
Tax dispute - Cerro Vanguardia S.A.(12) 52 -
Tax dispute - AngloGold Ashanti Ltd.(13) 8 -
Contingent assets
Indemnity - Kinross Gold Corporation (14) (64) (93)
Royalty - Tau Lekoa Gold Mine (15) - -
Financial Guarantees
Oro Group (Pty) Limited (16) 10 11
696 319
(1) Groundwater pollution - AngloGold Ashanti Limited has identified
groundwater contamination plumes at certain of its
operations, which have occurred primarily as a result of seepage. Numerous
scientific, technical and legal studies
have been undertaken to assist in determining the magnitude of the
contamination and to find sustainable remediation
solutions. The group has instituted processes to reduce future potential
seepage and it has been demonstrated
that Monitored Natural Attenuation (MNA) by the existing environment will
contribute to improvements in some
instances. Furthermore, literature reviews, field trials and base line
modelling techniques suggest, but have not yet
proven, that the use of phyto-technologies can address the soil and
groundwater contamination. Subject to the
completion of trials and the technology being a proven remediation technique,
no reliable estimate can be made for the
obligation.
(2) Deep groundwater pollution - The group has identified a flooding and
future pollution risk posed by deep
groundwater in certain underground m i n e s in Africa. Various studies have
been undertaken by AngloGold Ashanti
Limited since 1999. Due to the interconnected nature of mining operations, any
proposed solution needs to be a
combined one supported by all the mines located in these gold fields. As a
result, in South Africa, the Mineral and Petroleum
Resources Development Act (MPRDA) requires that the affected mining companies
develop a Regional Mine Closure
Strategy to be approved by the Department of Mineral Resources. In view of the
limitation of current information for the
accurate estimation of a liability, no reliable estimate can be made for the
obligation.
(3) Indirect taxes - AngloGold Ashanti (Ghana) Limited (AGAG) received a tax
assessment for the 2006 to 2008 and for
the 2009 to 2011 tax years following audits by the tax authorities which
related to various indirect taxes amounting to
$29m (2013: $25m). Management is of the opinion that the indirect taxes were
not properly assessed and the company
has lodged an objection.
(4) Litigation - On 11 October 2011, AGAG terminated its commercial
arrangements with Mining and Building
Contractors Limited (MBC) relating to certain underground development,
construction on bulkheads and diamond
drilling services provided by MBC in respect of the Obuasi mine. On 8 November
2012, as a result of this
termination, AGAG and MBC concluded a separation agreement that specified the
terms on which the parties
agreed to sever their commercial relationship. On 23 July 2013, MBC commenced
proceedings against AGAG in the
High Court of Justice (Commercial Division) in Accra, Ghana, and served a writ
of summons that claimed a total of
approximately $ 97m in damages. MBC asserts various claims for damages,
including, among others, as a result of
the breach of contract, non-payment of outstanding historical indebtedness by
AGAG and the demobilisation of
equipment, spare parts and material acquired by MBC for the benefit of AGAG in
connection with operations at the
Obuasi mine in Ghana. MBC has also asserted various labour claims on behalf of
itself and certain of its former
contractors and employees at the Obuasi mine. On 9 October 2013, AGAG filed a
motion in court to refer the action or
a part thereof to arbitration. This motion was set to be heard on 25 October
2013, however, on 24 October 2013, MBC
filed a motion to discontinue the action with liberty to reapply. On 20
February 2014, AGAG was served with a new writ
for approximately $97m, as previously claimed. On 5 May 2014, the court
dismissed AGAG's application for stay of
proceedings pending arbitration and ordered AGAG to file its statement of
defence within 14 days. AGAG intends to
appeal this ruling.
(5) Litigation - AGAG received a summons on 2 April 2013 from Abdul Waliyu and
152 others in which the plaintiffs
allege that they were or are residents of the Obuasi municipality or its
suburbs and that their health has been
adversely affected by emission and/or other environmental impacts arising in
connection with the current and/or
historical operations of the Pompora Treatment Plant (PTP) which was
decommissioned in 2000. The claim is to
award general damages, special damages for medical treatment and punitive
damages, as well as several orders
relating to the operation of the PTP. The plaintiffs subsequently amended
their writ to include their respective
addresses. AGAG filed a defenc e to the amended writ on 16 July 2013 and are
awaiting the plaintiffs to
apply for directions. In view of the limitation of current information for the
accurate estimation of a liability, no reliable
estimate can be made for the obligation.
(6) Litigation - five executive members of the PTP (AGA) Smoke Effect
Association (PASEA) sued AGAG on 24
February 2014 in their personal capacity and on behalf of the members of
PASEA. The plaintiffs claim that
they were residents of Tutuka, Sampsonkrom, Anyimadukrom, Kortkortesua,
Abomperkrom, and PTP Residential
Quarters, all suburbs of Obuasi, in close proximity to the now decommissioned
Pompara Treatment Plant (PTP).
The plaintiffs claim they have been adversely affected by the operations of
the PTP. In view of the limitation of current
information for the accurate estimation of a liability, no reliable estimate
can be made for the obligation.
(7) Occupational Diseases in Mines and Works Act (ODMWA) litigation - On 3
March 2011, in Mankayi vs. AngloGold
Ashanti, the Constitutional Court of South Africa held that section 35(1) of
the Compensation for Occupational Injuries
and Diseases Act, 1993 does not cover an "employee" who qualifies for
compensation in respect of "compensable
diseases" under the Occupational Diseases in Mines and Works Act, 1973
(ODMWA). This judgement allows such
qualifying employee to pursue a civil claim for damages against the employer.
Following the Constitutional Court
decision, AngloGold Ashanti has become subject to numerous claims relating to
Silicosis and other Occupational
Lung Diseases (OLD), including several potential class actions and individual
claims.
For example, on or about 21 August 2012, AngloGold Ashanti was served with an
application instituted by
Bangumzi Bennet Balakazi ("the Balakazi Action") and others in which the
applicants seek an order declaring that all
mine workers (former or current) who previously worked or continue to work in
specified South African gold mines for
the period owned by AngloGold Ashanti and who have silicosis or other OLD
constitute members of a class for the
purpose of proceedings for declaratory relief and claims for damages. In the
event the class is certified, such class of
workers would be permitted to institute actions by way of a summons against
AngloGold Ashanti for amounts as
yet unspecified. On 4 September 2012 , AngloGold As ha nti delivered its
notice of intention to defend this
application. AngloGold Ashanti also delivered a formal request for additional
information that it requires to prepare its
affidavits in respect to the allegations and the request for certification of
a class.
In addition, on or about 8 January 2013, AngloGold Ashanti and its subsidiary
Free State Consolidated Gold Mines
(Operations) Limited, alongside other mining companies operating in South
Africa, were served with another
application to certify a class ("the Nkala Action"). The applicants in the
case seek to have the court certify two
classes namely: (i) current and former mineworkers who have silicosis (whether
or not accompanied by any other
disease) and who work or have worked on certain specified gold mines at any
time from 1 January 1965 to date;
and (ii) the dependants of mineworkers who died as a result of silicosis
(whether or not accompanied by any
other disease) and who worked on these gold mines at any time after 1 January
1965. AngloGold Ashanti filed a
notice of intention to oppose the application.
On 21 August 2013, an application was served on AngloGold Ashanti, for the
consolidation of the Balakazi Action and
the Nkala Action, as well as a request for an amendment to change the scope of
the classes the court was
requested to certify in the previous applications that were initiated. The
applicants n o w request certification of two
classes (the "silicosis class" and the "tuberculosis class"). The silicosis
class would consist of certain current and
former mineworkers who have contracted silicosis, and the dependants of
certain deceased mineworkers who
have died of silicosis (whether or not accompanied by any other disease). The
tuberculosis class would consist of certain
current and former mineworkers who have or had contracted pulmonary
tuberculosis and the dependants of certain
deceased mineworkers who died of pulmonary tuberculosis (but excluding
silico-tuberculosis). AngloGold Ashanti will
defend against the request for certification of these classes in 2014.
In October 2012, AngloGold Ashanti received a further 31 individual summonses
and particulars of claim relating to
silicosis and/or other OLD. The total amount claimed in the 31 summonses is
approximately $7 million. On 22 October
2012, AngloGold Ashanti filed a notice of intention to oppose these claims and
took legal exception to the summonses
on the ground that certain particulars of claim were unclear. On 4 April 2014,
the High Court of South Africa dismissed
these exceptions and on 25 April 2014, Anglogold Ashanti filed its plea in
this matter. The company will continue to defend
these cases on their merits.
On or about 3 March 2014, AngloGold Ashanti received an additional 21
individual summonses and particulars of
claim relating to silicosis and/or other OLD. The total amount claimed in the
21 summonses is approximately $4.5 million. AngloGold Ashanti has filed a
notice of intention to oppose these claims. On 2 May 2014 AngloGold Ashanti
filed a notice taking legal exception to the summonses on the ground that
certain particulars of claim were unclear. The
court date has not yet been set to hear the exceptions.
On or about 24 March 2014, AngloGold Ashanti received a further 686 individual
summonses and particulars of claim
relating to silicosis and/or other OLD. The total amount claimed in the 686
summonses is approximately $109 million.
AngloGold Ashanti has filed a notice of intention to oppose these claims. On
15 May 2014 AngloGold Ashanti filed a
notice taking legal exception to the summonses on the ground that certain
particulars of claim were unclear. The court
date has not yet been set to hear the exceptions.
On or about 1 April 2014, AngloGold Ashanti received a further 518 individual
summonses and particulars of claim
relating to silicosis and/or other OLD. The total amount claimed in the 518
summonses is approximately $90 million.
AngloGold Ashanti has filed a notice of intention to oppose these claims. On
15 May 2014 AngloGold Ashanti filed a
notice taking legal exception to the summonses on the ground that certain
particulars of claim were unclear. The court
date has not yet been set to hear the exceptions.
It is possible that additional class actions and/or individual claims relating
to silicosis and/or other OLD will be
filed against AngloGold Ashanti in the future. AngloGold Ashanti will defend
all current and subsequently filed claims on
their merits. Should AngloGold Ashanti be unsuccessful in defending any such
claims, or in otherwise favourably
resolving perceived deficiencies in the national occupational disease
compensation framework that were identified in
the earlier decision by the Constitutional Court, such matters would have an
adverse effect on its financial position,
which could be material. The company is unable to reasonably estimate its
share of the amounts claimed.
(8) Other tax disputes - In November 2007, the Departamento Nacional de
Produção Mineral (DNPM), a Brazilian
federal mining authority, issued a tax assessment against AngloGold Ashanti
Brazil Mineração Ltda (AABM) in the
amount of $20m (2013: $21m) relating to the calculation and payment by AABM of
the financial contribution on mining
exploitation (CFEM) in the period from 1991 to 2006. AngloGold As h an ti
Limited's subsidiaries i n Brazil are
involved in various other disputes with tax authorities. These disputes
involve federal tax assessments including
income tax, royalties, social contributions and annual property tax. The
amount involved is approximately $18m (2013: $19m). Management is of the
opinion that these taxes are not payable.
(9) Sales tax on gold deliveries - In 2006, Mineração Serra Grande S.A. (MSG),
received two tax assessments from the
State of Goiás related to payments of state sales taxes at the rate of 12% on
gold deliveries for export from one
Brazilian state to another during the period from February 2004 to the end of
May 2006. The first and second
assessments are approximately $66m (2013: $99m) and $41m (2013: $62m)
respectively. In November 2006, the
administrative council's second chamber ruled in favour of MSG and fully
cancelled the tax liability related to the first
period. In July 2011, the administrative council's second chamber ruled in
favour of MSG and fully cancelled the
tax liability related to the second period. The State of Goiás has appealed to
the full board of the State of Goiás tax
administrative council. In November 2011 (first case) and June 2012 (second
case), the administrative council's full
board approved the suspension of proceedings and the remittance of the matter
to the Department of Supervision of
Foreign Trade (COMEX) for review and verification. On 28 May 2013, the Full
Board of the State of Goiás Tax
Administrative Council ruled in favour of the State of Goiás, however reduced
the penalties of the two tax assessments
from 200% to 80%. The company is considering legal options available in this
matter, since it believes that both
assessments a r e in violation of federal legislation on sales taxes. MSG will
be required to provide a bank guarantee
to the tax authorities to proceed with legal discussion at the judiciary
level. A decree has been signed by the Governor of
the State of Goias which will enable companies to settle outstanding tax
assessments. The implementing regulations are
currently being drafted and MSG will be considering the options that may be
open to it under the decree and implementing
regulations which may result in the contingent liability referred to above
being settled. Until the regulations are published
and assessed by MSG it is not possible to determine any settlement value.
(10) Other tax disputes - MSG received a tax assessment in October 2003 from
the State of Minas Gerais related to
sales taxes on gold. The tax administrators rejected the company's appeal
against the assessment. The company is
now appealing the dismissal of the case. The assessment is approximately $17m
(2013: $19m).
(11) Tax dispute - AngloGold Ashanti Colombia S.A. (AGAC) received notice from
the Colombian Tax Office (DIAN) that it
disagreed with the company's tax treatment of certain items in the 2011 and
2010 income tax returns. On 23 October
2013 AGAC received the official assessments from the DIAN which established
that an estimated additional tax of
$36m (2013:$25m) will be payable if the tax returns are amended. Penalties and
interest for the additional taxes
are expected to be $155m (2013: $131m), based on Colombian tax law. The
company believes that it has applied
the tax legislation c orrectl y. AGAC requested that DIAN reconsider i ts
decision and the company has been
officially notified that DIAN will review its earlier ruling. This review is
anticipated to take twelve months, at the end of
which AGAC may file suit if the ruling is not reversed.
(12) Tax dispute - On 12 July 2013, Cerro Vanguardia S.A. received a
notification from the Argentina Tax Authority
requesting corrections to the 2007, 2008 and 2009 income tax returns of about
$15m relating to the non-deduction of
tax losses previously claimed on hedge contracts. Penalties and interest on
the disputed amounts are estimated at a
further $37m. Management is of the opinion that the taxes are not payable and
is preparing a response.
(13) Tax dispute - on 7 April 2014 AngloGold Ashanti Limited received
notification from the South African Revenue Service that
certain corporate expenses have been disallowed. The total amount including
penalties and interest is estimated at $8m and
the company will be appealing against this decision.
(14) Indemnity - As part of the acquisition by AngloGold Ashanti Limited of
the remaining 50% interest in MSG during
June 2012, Kinross Gold Corporation (Kinross) has provided an indemnity to a
maximum amount of BRL255m against
the specific exposures discussed in items 8 and 9 above. At 31 December 2013,
the company has estimated that the
maximum contingent asset is $64m (2013: $93m).
(15) oyalty - As a result of the sale of the interest in the Tau Lekoa Gold
Mine during 2010, the group is entitled to receive a
royalty on the production of a total of 1.5Moz by the Tau Lekoa Gold Mine and
in the event that the average
monthly rand price of gold exceeds R180,000/kg (subject to an inflation
adjustment).Where the average monthly
rand price of gold does not exceed R180,000/kg (subject to an inflation
adjustment), the ounces produced in that
quarter do not count towards the total 1.5Moz upon which the royalty is
payable. The royalty is determined a t 3%
of the net revenue (being gross revenue less state royalties) generated by the
Tau Lekoa assets. Royalties on
435,986oz (2013: 331,558oz) produced have been received to date.
(16) Provision of surety - The company has provided surety in favour of a
lender on a gold loan facility with its associate
Oro Group (Pty) Limited and one of its subsidiaries to a maximum value of $10m
(2013: $11m). The probability of
the non- performance under the surety ships is considered minimal. The
suretyship agreements have a termination
notice period of 90 days.
18. Concentration of tax risk
There is a concentration of tax risk in respect of recoverable value added
tax, fuel duties and appeal deposits from the Tanzanian
government.
The recoverable value added tax, fuel duties and appeal deposits are
summarised as follows:
2014
US Dollar million
Recoverable fuel duties(1) 17
Recoverable value added tax 19
Appeal deposits 4
(1) Fuel duty claims are required to be submitted after consumption of the
related fuel and are subject to authorisation by the Customs and Excise
authorities.
19. Borrowings
AngloGold Ashanti's borrowings are interest bearing.
20. Subsequent events
IFebruary 2014, Cerro Vanguardia Sociedad Anonima (a 92.5% held subsidiary of
AngloGold Ashanti Limited) entered into a sale
agreement with Franco Nevada Corporation, subject to certain conditions,
related to the 2.0% NSR royalty on Yamana's Gold Inc.'s Cerro
Moro project located in Argentina for a cash consideration equal to the
Argentine peso equivalent of US$23.5 million (as determined at
the official Argentine peso/US$ exchange rate on closing). The conditions were
met and the transaction closed on 24 April 2014.
21. Announcements
AMCU Strike Notice: On 20 January 2014, AngloGold Ashanti confirmed that the
Association of Mineworkers and Construction Union
(AMCU) had served notice that it intended to call a strike by its members at
the company's South Africa operations, starting Thursday,
23 January 2014.
Threatened strike by AMCU declared unprotected: On 30 January 2014, AngloGold
Ashanti announced that South Africa's Labour Court
had ruled that a strike threatened by AMCU at the company's South Africa mines
would be unprotected, and that employees should
continue to proceed to work. Also, on 30 January 2014, the court granted an
interim interdict and ruled that AMCU must return to court
on 14 March 2014 to explain why the interim interdict should not be made
permanent.
On 14 March 2014, a postponement was requested and a new court date was set
for 5 June 2014. The interim interdict will remain in
force until 5 June 2014.
AngloGold Ashanti enters into agreement to sell Navachab mine: On 10 February
2014, AngloGold Ashanti announced that it had
signed a binding agreement, subject to certain conditions, to sell its entire
interest in AngloGold Ashanti Namibia (Proprietary) Limited, a
wholly owned subsidiary which owns the Navachab Gold Mine, to a wholly-owned
subsidiary of QKR Corporation Limited. The
agreement provided for an upfront consideration based on an enterprise value
of US$110 million which will be adjusted to take into
account the mine's net debt and working capital position on the closing date
of the transaction and is subject to a number of conditions
precedent.
Changes to the Board of Directors: On 17 February 2014, AngloGold Ashanti
announced that as a result of his increasing portfolio of
professional commitments, Mr TT Mboweni had decided not to stand for
re-election as an independent Non-Executive Director at the
Annual General Meeting to be held on 14 May 2014. Mr Mboweni also stood down
as Chairman on the same date. Mr SM Pityana was
elected unanimously by the board to take over from Mr Mboweni. Prof LW Nkuhlu
was also appointed Lead Independent Director.
AngloGold Ashanti announces new board appointment: on 25 March 2014 AngloGold
Ashanti announced the appointment of Mr David L
Hodgson as an independent non-executive director to its Board of Directors,
with effect from 25 April 2014.
By order of the Board
S M PITYANA S VENKATAKRISHNAN
Chairman Chief Executive Officer
12 May 2014
Non-GAAP disclosure
From time to time AngloGold Ashanti Limited may publicly disclose certain
"Non-GAAP" financial measures in the course of its financial
presentations, earnings releases, earnings conference calls and otherwise.
The group uses certain Non-GAAP performance measures and ratios in managing
the business and may provide users of this financial
information with additional meaningful comparisons between current results and
results in prior operating periods. Non-GAAP financial
measures should be viewed in addition to, and not as an alternative to, the
reported operating results or any other measure of performance
prepared in accordance with IFRS. In addition, the presentation of these
measures may not be comparable to similarly titled measures
that other companies use.
A Adjusted headline earnings
Quarter Year ended
ended
Mar Dec Mar Dec
2014 2013 2013 2013
Unaudited Unaudited Unaudited Unaudited
US Dollar million
Headline earnings (loss) (note 9) 38 (276) 259 78
Loss (gain) on unrealised non-hedge derivatives and 16 (28) - (94)
other commodity contracts
Deferred tax on unrealised non-hedge derivatives and (4) 8 - 25
other commodity contracts (note 8)
Derecognition of deferred tax assets - 330 - 330
Fair value adjustment on $1.25bn bonds 70 12 - 58
Fair value adjustment on option component of - - (9) (9)
convertible bonds
Fair value adjustment on mandatory convertible bonds - - (137) 211
Adjusted headline earnings 119 45 113 599
Adjusted headline earnings per ordinary share (cents) 29 11 29 153
(1)
(1) Calculated on the basic weighted average number of ordinary shares.
B Adjusted gross profit
Quarter Year ended
ended
Mar Dec Mar Dec
2014 2013 2013 2013
Unaudited Unaudited Unaudited Unaudited
US Dollar million
Reconciliation of gross profit to
adjusted gross profit:
Gross profit 296 404 434 1,445
Loss (gain) on unrealised non-hedge
derivatives and
other commodity contracts 16 (28) - (94)
Adjusted gross profit 312 376 434 1,351
C Price received
Quarter ended Year ended
Mar Dec Mar Dec
2014 2013 2013 2013
Unaudited Unaudited Unaudited Unaudited
US Dollar million / Imperial
Gold income (note 2) 1,324 1,418 1,463 5,497
Adjusted for non-controlling interests (20) (15) (22) (77)
1,304 1,403 1,441 5,420
Realised loss on other commodity contracts 5 6 7 26
Associates and joint ventures' share of gold 106 105 69 290
income including realised non-hedge
derivatives
Attributable gold income including realised 1,415 1,514 1,517 5,736
non-hedge derivatives
Attributable gold sold - oz (000) 1,097 1,191 927 4,093
Revenue price per unit - $/oz 1,290 1,271 1,636 1,401
Rounding of figures may result in computational discrepancies.
Quarter ended Year ended
Mar Dec Mar Dec
2014 2013 2013 2013
Unaudited Unaudited Unaudited Unaudited
US Dollar million /
Imperial
D All-in sustaining costs (1)
Cost of sales (note 3) 1,012 1,042 1,029 4,146
Amortisation of tangible and intangible assets (note 3) (184) (211) (215) (799)
Adjusted for decommissioning amortisation 2 2 2 6
Inventory writedown to net realisable value and other stockpile - 38 - 216
adjustments (note 5)
Corporate administration and marketing related to current 25 36 65 199
operations
Associates and joint ventures' share of costs 68 90 47 234
Sustaining exploration and study costs 10 16 31 94
Total sustaining capex 174 253 243 999
All-in sustaining costs 1,107 1,265 1,202 5,095
Adjusted for non-controlling interests and non -gold producing (17) (16) (19) (71)
companies
All-in sustaining costs adjusted for non-controlling interests and 1,090 1,249 1,183 5,024
non-gold producing companies
Adjusted for stockpile write-offs - (38) - (216)
All-in sustaining costs adjusted for non-controlling interests, 1,090 1,211 1,183 4,808
non-gold producing companies and stockpile write-offs
All-in sustaining costs 1,107 1,265 1,202 5,095
Non-sustaining Project capex 100 224 269 994
Technology improvements 4 7 2 14
Non-sustaining exploration and study costs 21 28 53 175
Corporate and social responsibility costs not related to current 5 1 1 21
operations
All-in costs 1,237 1,525 1,527 6,299
Adjusted for non-controlling interests and non -gold producing (14) (16) (23) (81)
companies
All-in costs adjusted for non-controlling interests and non-gold 1,223 1,509 1,504 6,218
producing companies
Adjusted for stockpile write-offs - (38) - (216)
All-in costs adjusted for non-controlling interests, non-gold 1,223 1,471 1,504 6,002
producing companies and stockpile write-offs
Gold sold - oz (000) 1,097 1,191 927 4,093
All-in sustaining cost (excluding stockpile write-offs) per unit - 993 1,015 1,275 1,174
$/oz
All-in cost per unit (excluding stockpile write-offs) - $/oz 1,114 1,233 1,622 1,466
(1) Refer to note J for summary of operations by mine
E Total costs (2)
Total cash costs (note 3) 778 861 797 3,297
Adjusted for non-controlling interests, non-gold producing (34) (20) (39) (110)
companies and other
Associates and joint ventures' share of total cash costs 68 79 46 219
Total cash costs adjusted for non-controlling interests and 812 920 804 3,406
non-gold producing companies
Retrenchment costs (note 3) 6 16 6 69
Rehabilitation and other non-cash costs (note 3) 22 (11) 11 18
Amortisation of tangible assets (note 3) 175 202 213 775
Amortisation of intangible assets (note 3) 9 9 2 24
Adjusted for non-controlling interests and non-gold producing (4) 17 (6) 14
companies
Equity-accounted associates and joint ventures' share of 22 17 1 23
production costs
Total production costs adjusted for non-controlling interests and 1,042 1,170 1,031 4,329
non-gold producing companies
Gold produced - oz (000) 1,055 1,229 899 4,105
Total cash cost per unit - $/oz 770 748 894 830
Total production cost per unit - $/oz 988 952 1,147 1,054
(2) Refer to note J for summary of operations by mine
F EBITDA
Operating profit (loss) 229 235 264 (2,440)
Retrenchment costs (note 3) 6 16 6 69
Amortisation of tangible assets (note 3) 175 202 213 775
Amortisation of intangible assets (note 3) 9 9 2 24
Impairment and derecognition of goodwill, tangible and intangible - 36 1 3,029
assets (note 5)
Impairment of other investments (note 5) - 1 12 30
Net loss (profit) on disposal and derecognition of assets (note 5) 2 - 1 (2)
Loss (gain) on unrealised non-hedge derivatives and other 16 (28) - (94)
commodity contracts
Write-down of stockpiles and heap leach to net realisable value
and other
stockpile adjustments (note 5) - 38 - 216
Write-off of a loan to SOKIMO (note 5) - - - 7
Share of equity-accounted associates and joint ventures' EBITDA 39 34 10 53
476 544 509 1,667
Quarter ended Year ended
Mar Dec Mar Dec
2014 2013 2013 2013
Unaudited Unaudited Unaudited Unaudited
US Dollar million /
Imperial
G Interest cover
EBITDA (note F) 476 544 509 1,667
Finance costs (note 6) 64 67 49 247
Capitalised finance costs - - 4 5
64 67 53 252
Interest cover - times 7 8 10 7
As at As at As at
Mar Dec Mar
2014 2013 2013
Unaudited Unaudited Unaudited
US Dollar million
H Net asset value - cents per share
Total equity 3,175 3,107 5,569
Mandatory convertible bonds - - 448
3,175 3,107 6,017
Number of ordinary shares in issue - million (note 10) 404 403 385
Net asset value - cents per share 786 770 1,562
Total equity 3,175 3,107 5,569
Mandatory convertible bonds - - 448
Intangible assets (269) (267) (321)
2,906 2,840 5,696
Number of ordinary shares in issue - million (note 10) 404 403 385
Net tangible asset value - cents per share 720 704 1,479
I Net debt
Borrowings - long-term portion 3,569 3,633 2,844
Borrowings - short-term portion 235 258 214
Bank overdraft 22 20 -
Total borrowings (1) 3,826 3,911 3,058
Corporate office lease (24) (25) (29)
Unamortised portion of the convertible and rated bonds (3) 2 33
Fair value adjustment on $1.25bn bonds (128) (58) -
Cash restricted for use (51) (77) (63)
Cash and cash equivalents (525) (648) (680)
Net debt excluding mandatory convertible bonds 3,095 3,105 2,319
(1) Borrowings exclude the mandatory convertible bonds (note H).
Rounding of figures may result in computational discrepancies.
J Summary of Operations by mine
For the three months ended 31 March 2014
Operations in South Africa
(in $ millions, except as otherwise noted)
Great Moab Surface
South Africa Total South Africa
Noligwa Kopanang Khotsong Mponeng TauTona operations other (Operations) Corporate(5)
All-in sustaining costs
Cost of sales per financial 22 53 49 74 58 56 - 312 1
statements
Amortisation of tangible and (2) (20) (12) (17) (17) (5) 1 (72) (3)
intangible assets
Adjusted for decomissioning - - - - - - - - -
amortisation
Inventory writedown to net - - - - - - - - -
realisable value and other
stockpile adjustments
Corporate administration and - - - - - - - - 23
marketing related to current
operations
Associates and equity accounted - - - - - - - - (1)
joint ventures' share of costs
(2)
Sustaining exploration and - - - - - - - - -
study costs
Total sustaining capital 1 5 7 14 6 9 - 42 -
expenditure
All-in sustaining costs 21 38 44 71 47 60 1 282 20
Adjusted for non-controlling - - - - - - - - 3
interests (1)
All-in sustaining costs 21 38 44 71 47 60 1 282 23
adjusted for non-controlling
interests
Gold sold - oz (000) (3) 17 29 55 76 52 60 - 290
All-in sustaining cost
(excluding stockpile
impairments) per unit - $/oz 1,200 1,320 802 930 916 1,000 - 975
(4)
Total cash costs
Total cash costs per financial 19 32 35 54 40 50 1 231 (1)
statements
Adjusted for non-controlling
interests, non-gold
producing companies and other - - - - - - - - 2
(1)
Associates and equity accounted
joint ventures' share of
total cash costs (2) - - - - - - - - (1)
Total cash costs adjusted for
non-controlling interests
and non-gold producing 19 32 35 54 40 50 1 231 -
companies
Retrenchment costs - 1 1 2 1 - - 5 -
Rehabilitation and other - 1 1 1 1 1 - 5 (2)
non-cash costs
Amortisation of tangible assets 1 19 11 16 16 5 (1) 67 1
Amortisation of intangible - - 1 1 1 1 1 5 1
assets
Adjusted for non-controlling
interests and non-gold
producing companies (1) - - - - - - - - -
Associates and equity accounted
joint ventures' share of
production costs (2) - - - - - - - - 1
Total production costs adjusted
for non-controlling
interests and non-gold 20 53 49 74 59 57 1 313 1
producing companies
Gold produced - oz (000) (3) 17 29 55 76 52 60 - 290 -
Total cash costs per unit - 1,123 1,074 646 709 774 836 - 797 -
$/oz (4)
Total production costs per unit 1,258 1,802 888 974 1,125 934 - 1,077 -
- $/oz (4)
(1) Adjusting for non-controlling interest of items included in calculation,
to disclose the attributable portions only. Other consists of heap leach
inventory.
(2) Attributable costs and related expenses of associates and equity accounted
joint ventures are included in the calculation of total cash costs
per ounce and total production costs per ounce.
(3) Attributable portion.
(4) In addition to the operational performances of the mines, all-in
sustaining cost per ounce, total cash costs per ounce and total production
costs per ounce are affected by fluctuations in the currency exchange rate.
AngloGold Ashanti reports all-in sustaining cost per ounce
calculated to the nearest US dollar amount and gold sold in ounces. AngloGold
Ashanti reports total cash costs per ounce and total
production costs per ounce calculated to the nearest US dollar amount and gold
produced in ounces.
(5) Corporate includes non-gold producing subsidiaries.
(6) Total cash costs per ounce calculation includes heap-leach inventory
change.
For the three months ended 31 March 2014
Operations in DRC, Ghana, Guinea, Mali, Namibia and Tanzania
(in $ millions, except as otherwise noted)
DRC GHANA NAMIBIA TANZANIA GUINEA MALI
Continental CONTINENTAL
AFRICA
Kibali Iduapriem Obuasi Siguiri Morila Sadiola Yatela Navachab Geita Africa TOTAL
other
All-in sustaining costs
Cost of sales per - 52 71 78 - - - 14 109 1 325
financial statements
Amortisation of tangible - (5) (4) (7) - - - - (18) (1) (35)
and intangible assets
Adjusted for - - - 1 - - - - - - 1
decomissioning
amortisation
Inventory writedown to
net realisable value and
other stockpile - - - - - - - - - - -
adjustments
Abandonment of - - - - - - - - - - -
stockpiles
Corporate administration
and marketing related
to current operations - - - - - - - - - 1 1
Associates and equity 28 - - - 11 23 7 - - - 69
accounted joint
ventures' share of costs
(2)
Sustaining exploration - - - 1 - - - - - - 1
and study costs
Total sustaining capital 2 4 14 9 4 1 - - 36 - 70
expenditure
All-in sustaining costs 30 51 81 82 15 24 7 14 127 1 432
Adjusted for - - - (12) - - - - - - (12)
non-controlling
interests (1)
All-in sustaining costs 30 51 81 70 15 24 7 14 127 1 420
adjusted for non-
controlling interests
Gold sold - oz (000) (3) 51 57 53 71 10 17 4 17 122 - 401
All-in sustaining cost 572 898 1,530 961 1,598 1,404 2,062 785 1,048 - 1,042
(excluding stockpile
impairments) per unit -
$/oz (4)
Total cash costs
Total cash costs per - 32 66 66 - - - 13 67 (1) 243
financial statements
Adjusted for - - - (10) - - - - - - (10)
non-controlling
interests, non-gold
producing companies and
other (1)
Associates and equity
accounted joint
ventures'
share of total cash 28 - - - 11 24 6 - - - 69
costs (2)
Total cash costs
adjusted for
non-controlling
interests and non-gold 28 32 66 56 11 24 6 13 67 (1) 302
producing companies
Retrenchment costs - - - - - - - - 1 - 1
Rehabilitation and other - 1 2 1 - - - - 3 - 7
non-cash costs
Amortisation of tangible - 5 4 7 - - - - 18 1 35
assets
Amortisation of - - - - - - - - - 1 1
intangible assets
Adjusted for - - - (1) - - - - - - (1)
non-controlling
interests and non- gold
producing companies (1)
Associates and equity 14 - - - 1 6 - - - - 21
accounted joint
ventures' share of
production costs (2)
Total production costs 42 38 72 63 12 30 6 13 89 1 366
adjusted for non-
controlling interests
and non-gold producing
companies
Gold produced - oz (000) 51 45 53 70 10 19 4 16 106 - 374
(3)
Total cash costs per 538 716 1,234 800 1,099 1,262 1,804 771 631 - 808
unit -
$/oz (4)
Total production costs 806 857 1,346 907 1,215 1,591 1,889 780 832 - 977
per unit - $/oz (4)
For the three months ended 31 March 2014
Operations in Australia, United States of America, Argentina and Brazil
(in $ millions, except as otherwise noted)
UNITED
STATES
AUSTRALIA OF ARGENTINA BRAZIL
AMERICA
TOTAL AngloGold AMERICAS
Ashanti
Sunrise Tropicana Australia AUSTRALIA Cripple Cerro Mineracao Serra Americas TOTAL
Dam other Creek & Vanguardia Grande other
Victor
All-in sustaining costs
Cost of sales per 89 62 6 157 43 56 81 37 - 217
financial statements
Amortisation of tangible (8) (22) - (30) - (8) (26) (10) - (44)
and intangible assets
Adjusted for - 1 - 1 - - - - - -
decomissioning
amortisation
Inventory writedown to - - - - - - - - - -
net realisable value and
other stockpile
adjustments
Corporate administration - - 1 1 - - - - - -
and marketing related to
current operations
Associates and equity - - - - - - - - - -
accounted joint
ventures' share of costs
(2)
Sustaining exploration - - 2 2 - - 2 1 4 7
and study costs
Total sustaining capital 9 18 0 27 4 7 17 7 - 35
expenditure
All-in sustaining costs 90 59 9 158 47 55 74 35 4 215
Adjusted for - - - - - (4) - - (4) (8)
non-controlling
interests (1)
All-in sustaining costs 90 59 9 158 47 51 74 35 - 207
adjusted for
non-controlling
interests
Gold sold - oz (000) (3) 83 86 - 168 47 65 92 34 - 237
All-in sustaining cost
(excluding stockpile
impairments) per unit - 1,095 694 - 929 1,015 800 805 1,027 - 879
$/oz (4)
Total cash costs
Total cash costs per 75 42 4 121 60 41 58 25 - 184
financial statements
Adjusted for - - - - (23) (3) - - - (26)
non-controlling
interests, non-gold
producing companies and
other (1)
Associates and equity - - - - - - - - - -
accounted joint
ventures' share of total
cash costs (2)
Total cash costs 75 42 4 121 37 38 58 25 - 158
adjusted for
non-controlling
interests and non-gold
producing companies
Retrenchment costs - - - - - - - - - -
Rehabilitation and other - - 1 1 8 2 - - 1 11
non-cash costs
Amortisation of tangible 8 22 - 30 - 8 24 10 - 42
assets
Amortisation of - - - - - - 1 - 1 2
intangible assets
Adjusted for - - - - (2) (1) - - - (3)
non-controlling
interests and non-gold
producing companies (1)
Associates and equity - - - - - - - - - -
accounted joint
ventures' share of
production costs (2)
Total production costs 83 64 5 152 43 47 83 35 2 210
adjusted for
non-controlling
interests and non-gold
producing companies
Gold produced - oz (000) 71 84 - 155 52 58 94 32 - 236
(3)
Total cash costs per 1,066 495 - 779 699 644 619 799 - 668
unit - $/oz (4)
Total production costs 1,180 751 - 979 826 804 895 1,134 - 890
per unit -
$/oz (4)
For the three months ended 31 December 2013
Operations in South Africa
(in $ millions, except as otherwise noted)
Great Moab Surface South Total South
Africa Africa
Noligwa Kopanang Khotsong Mponeng Savuka (7) TauTona (7) operations other (Operations) Corporate
(5)
All-in sustaining
costs
Cost of sales per
financial statements
24 49 56 82 - 50 61 - 322 (5)
Amortisation of (2) (10) (12) (19) - (13) (6) (62) (2)
tangible and
intangible assets
Adjusted for - - - - - - - - - -
decomissioning
amortisation
Inventory writedown to - - - - - - - - - (2)
net realisable value
and other stockpile
adjustments
Corporate - - - - - - - 2 2 31
administration and
marketing related to
current operations
Associates and equity - - - - - - - - - -
accounted joint
ventures' share of
costs (2)
Sustaining exploration - - - - - - - - - -
and study costs
Total sustaining 4 12 16 26 - 16 6 - 80 3
capital expenditure
All-in sustaining 26 51 60 89 - 53 61 2 342 25
costs
Adjusted for - - - - - - - - - -
non-controlling
interests (1)
All-in sustaining
costs adjusted for
non-controlling
interests 26 51 60 89 - 53 61 2 342 25
Gold sold - oz (000) 20 39 67 93 - 62 59 - 340
(3)
All-in sustaining cost
(excluding stockpile
impairments) per unit 1,294 1,296 890 963 - 852 1,039 - 1,005
- $/oz (4)
Total cash costs
Total cash costs per 20 36 40 61 - 50 53 - 260 (8)
financial statements
Adjusted for - - - - - - - - - 8
non-controlling
interests, non-gold
producing companies
and
other (1)
Associates and equity - - - - - - - - - -
accounted joint
ventures' share of
total cash costs (2)
Total cash costs 20 36 40 61 - 50 53 - 260 -
adjusted for
non-controlling
interests and non-gold
producing companies
Retrenchment costs 1 2 1 2 - - - - 6 (1)
Rehabilitation and 1 2 3 - - (13) 1 (2) (8) -
other non-cash costs
Amortisation of 2 9 11 18 - 12 6 - 58 1
tangible assets
Amortisation of - 1 1 2 - 1 - - 5 1
intangible assets
Adjusted for - - - - - - - - - 1
non-controlling
interests and non-gold
producing companies
(1)
Associates and equity - - - - - - - - - -
accounted joint
ventures' share of
production costs (2)
Total production costs
adjusted for
non-controlling
interests and non-gold 24 50 56 83 - 50 60 (2) 321 2
producing companies
Gold produced - oz 20 39 67 93 - 62 58 - 339 -
(000) (3)
Total cash costs per 1,032 910 596 656 - 809 915 - 767 -
unit - $/oz (4)
Total production costs 1,198 1,239 835 885 - 809 1,035 - 946 -
per unit - $/oz (4)
(1) Adjusting for non-controlling interest of items included in calculation,
to disclose the attributable portions only. Other consists of heap leach
inventory of Cripple Creek & Victor.
(2) Attributable costs and related expenses of associates and equity accounted
joint ventures are included in the calculation of total cash costs
per ounce and total production costs per ounce.
(3) Attributable portion.
(4) In addition to the operational performances of the mines, all-in
sustaining cost per ounce, total cash costs per ounce and total production
costs per ounce are affected by fluctuations in the currency exchange rate.
AngloGold Ashanti reports all-in sustaining cost per ounce
calculated to the nearest US dollar amount and gold sold in ounces. AngloGold
Ashanti reports total cash costs per ounce and total
production costs per ounce calculated to the nearest US dollar amount and gold
produced in ounces.
(5) Corporate includes non-gold producing subsidiaries.
(6) Total cash costs per ounce calculation includes heap-leach inventory
change.
(7) As from 1 January 2013, Tau Tona and Savuka were mined as one operation.
For the three months ended 31 December 2013
Operations in DRC, Ghana, Guinea, Mali, Namibia and Tanzania
(in $ millions, except as otherwise noted)
DRC GHANA GUINEA MALI NAMIBIA TANZANIA
Continental CONTINENTAL
AFRICA
Kibali Iduapriem Obuasi Siguiri Morila Sadiola Yatela Navachab Geita Africa other TOTAL
All-in sustaining costs
Cost of sales per - 72 94 76 - - - 8 98 5 353
financial statements
Amortisation of - (8) (2) (8) - - - - (33) - (51)
tangible and intangible
assets
Adjusted for - - - 1 - - - - - 1 2
decomissioning
amortisation
Inventory writedown to - - - - - 17 - - 23 - 40
net realisable value
and other stockpile
adjustments
Corporate - - - - - - - - - (2) (2)
administration and
marketing related to
current operations
Associates and equity 19 - - - 11 41 18 - - 1 90
accounted joint
ventures' share of
costs (2)
Sustaining exploration - - - 5 - 1 - - 1 - 7
and study costs
Total sustaining - 6 37 10 6 (1) - 1 50 - 109
capital expenditure
All-in sustaining costs 19 70 129 84 17 58 18 9 139 5 548
Adjusted for - - - (13) - - - - - 1 (12)
non-controlling
interests (1)
All-in sustaining costs 19 70 129 71 17 58 18 9 139 6 536
adjusted for
non-controlling
interests
Gold sold - oz (000) 40 62 62 64 12 24 8 17 147 - 437
(3)
All-in sustaining cost 469 1,153 2,069 1,116 1,434 1,639 2,226 526 784 - 1,129
(excluding stockpile
impairments) per unit -
$/oz (4)
Total cash costs
Total cash costs per - 65 86 75 - - - 9 83 - 318
financial statements
Adjusted for - - - (11) - - - - - - (11)
non-controlling
interests, non-gold
producing companies and
other (1)
Associates and equity 19 - - - 10 36 15 - - (1) 79
accounted joint
ventures' share of
total cash costs (2)
Total cash costs 19 65 86 64 10 36 15 9 83 (1) 386
adjusted for
non-controlling
interests and non-gold
producing companies
Retrenchment costs - 5 1 - - - - - - 3 9
Rehabilitation and - 6 6 3 - - - (1) (1) 1 14
other non-cash costs
Amortisation of - 7 2 8 - - - - 33 - 50
tangible assets
Amortisation of - - - - - - - - - 1 1
intangible assets
Adjusted for - - - (2) - - - - - - (2)
non-controlling
interests and non-gold
producing
companies (1)
Associates and equity 9 - - - 2 4 3 - - (1) 17
accounted joint
ventures' share of
production costs (2)
Total production costs 28 83 95 73 12 40 18 8 115 3 476
adjusted for
non-controlling
interests and non-gold
producing companies
Gold produced - oz 40 67 63 75 12 24 8 18 154 - 460
(000) (3)
Total cash costs per 471 966 1,354 844 853 1,506 1,923 524 543 - 839
unit - $/oz (4)
Total production costs 694 1,240 1,492 967 982 1,673 2,255 485 755 - 1,034
per unit -
$/oz (4)
For the three months ended 31 December 2013
Operations in Australia, United States of America, Argentina and Brazil
(in $ millions, except as otherwise noted)
UNITED
STATES
AUSTRALIA OF AMERICA ARGENTINA BRAZIL
TOTAL AngloGold AMERICAS
Ashanti
Sunrise Tropicana Australia AUSTRALIA Cripple Cerro Mineracao Serra Americas TOTAL
Dam other Creek & Vanguardia Grande other
Victor
All-in sustaining
costs
Cost of sales per 97 64 1 162 40 46 91 32 1 210
financial
statements
Amortisation of (27) (27) (2) (56) - (7) (22) (10) (1) (40)
tangible and
intangible assets
Adjusted for - - - - - - - - - -
decomissioning
amortisation
Inventory - - - - - - - - - -
writedown to net
realisable value
and other
stockpile
adjustments
Corporate - - - - 3 - 2 - - 5
administration
and marketing
related to
current
operations
Associates and - - - - - - - - - -
equity accounted
joint ventures'
share of costs
(2)
Sustaining - - 2 2 1 - 4 2 - 7
exploration and
study costs
Total sustaining
capital
expenditure
6 - 1 7 8 11 37 9 (11) 54
All-in sustaining 76 37 2 115 52 50 112 33 (11) 236
costs
Adjusted for - - - - - (4) - - - (4)
non-controlling
interests (1)
All-in sustaining 76 37 2 115 52 46 112 33 (11) 232
costs adjusted
for
non-controlling
interests
Gold sold - oz 94 58 - 152 48 54 126 34 - 262
(000) (3)
All-in sustaining
cost (excluding
stockpile
impairments) per 804 640 - 763 1,076 852 891 956 - 887
unit - $/oz (4)
Total cash costs
Total cash costs 70 38 - 108 52 44 62 24 1 183
per financial
statements
Adjusted for - - - - (13) (3) - - (1) (17)
non-controlling
interests,
non-gold
producing
companies and
other (1)
Associates and - - - - - - - - - -
equity accounted
joint ventures'
share of total
cash
costs (2)
Total cash costs 70 38 - 108 39 41 62 24 - 166
adjusted for
non-controlling
interests and
non-gold
producing
companies
Retrenchment - - 1 1 - - - - 1 1
costs
Rehabilitation - 2 - 2 (19) - 2 (3) 1 (19)
and other
non-cash costs
Amortisation of 27 27 1 55 - 7 21 10 - 38
tangible assets
Amortisation of - - - - - - 1 - 1 2
intangible assets
Adjusted for - - - - 20 (1) - - (1) 18
non-controlling
interests and
non-gold
producing
companies (1)
Associates and - - - - - - - - - -
equity accounted
joint ventures'
share of
production costs
(2)
Total production
costs adjusted
for
non-controlling
interests and 97 67 2 166 40 47 86 31 2 206
non-gold
producing
companies
Gold produced - 102 66 - 169 47 61 120 34 - 262
oz (000) (3)
Total cash costs 685 569 - 640 825 672 518 712 - 634
per unit - $/oz
(4)
Total production 945 1,016 - 985 846 784 720 928 - 787
costs per unit -
$/oz (4)
For the three months ended 31 March 2013
Operations in South Africa
(in $ millions, except as otherwise noted)
Great Moab Surface South Total South
Africa Africa
Noligwa Kopanang Khotsong Mponeng Savuka(7) TauTona(7) operations other (Operations) Corporate(5)
All-in sustaining
costs
Cost of sales per 28 54 60 87 - 71 54 - 354 4
financial statements
Amortisation of (2) (11) (18) (22) - (11) (5) (69) -
tangible and
intangible assets
Adjusted for - - - - - - - - - 1
decomissioning
amortisation
Inventory writedown - - - - - - - - - -
to net realisable
value and other
stockpile adjustments
Corporate - - - - - - - 1 1 55
administration and
marketing related to
current operations
Associates and equity - - - - - - - - - 2
accounted joint
ventures' share of
costs (2)
Sustaining - - - - - - - - - -
exploration and study
costs
Total sustaining 3 12 21 20 - 14 - (1) 69 3
capital expenditure
All-in sustaining 29 55 63 85 - 74 49 - 355 65
costs
Adjusted for - - - - - - - - - -
non-controlling
interests (1)
All-in sustaining 29 55 63 85 - 74 49 - 355 65
costs adjusted for
non-controlling
interests
Gold sold - oz (000) 23 45 40 91 - 56 60 - 314
(3)
All-in sustaining
cost (excluding
stockpile
impairments) per unit 1,243 1,228 1,564 929 - 1,319 832 - 1,129
- $/oz (4)
Total cash costs
Total cash costs per 26 44 45 66 - 61 50 1 293 3
financial statements
Adjusted for - - - - - - - - - (3)
non-controlling
interests, non-gold
producing companies
and
other (1)
Associates and equity - - - - - - - - - -
accounted joint
ventures' share of
total cash costs (2)
Total cash costs 26 44 45 66 - 61 50 1 293 -
adjusted for
non-controlling
interests and
non-gold producing
companies
Retrenchment costs 1 - - - - - 1 - 2 1
Rehabilitation and - 1 1 1 - 1 - - 4 (1)
other non-cash costs
Amortisation of 2 11 18 22 - 11 5 - 69 -
tangible assets
Amortisation of - - - - - - - - - 1
intangible assets
Adjusted for - - - - - - - - - (1)
non-controlling
interests and
non-gold producing
companies (1)
Associates and equity - - - - - - - - - (1)
accounted joint
ventures' share of
production costs (2)
Total production 29 56 64 89 - 73 56 1 368 (1)
costs adjusted for
non-controlling
interests and
non-gold producing
companies
Gold produced - oz 24 47 43 93 - 57 63 - 327 -
(000) (3)
Total cash costs per 1,108 932 1,052 707 - 1,070 805 - 896 -
unit - $/oz (4)
Total production 1,220 1,193 1,496 950 - 1,280 892 - 1,123 -
costs per unit - $/oz
(4)
(1) Adjusting for non-controlling interest of items included in calculation,
to disclose the attributable portions only. Other consists of heap leach
inventory of Cripple Creek & Victor.
(2) Attributable costs and related expenses of associates and equity accounted
joint ventures are included in the calculation of total cash costs
per ounce and total production costs per ounce.
(3) Attributable portion.
(4) In addition to the operational performances of the mines, all-in
sustaining cost per ounce, total cash costs per ounce and total production
costs per ounce are affected by fluctuations in the currency exchange rate.
AngloGold Ashanti reports all-in sustaining cost per ounce
calculated to the nearest US dollar amount and gold sold in ounces. AngloGold
Ashanti reports total cash costs per ounce and total
production costs per ounce calculated to the nearest US dollar amount and gold
produced in ounces.
(5) Corporate includes non-gold producing subsidiaries.
(6) Total cash costs per ounce calculation includes heap-leach inventory
change.
(7) As from 1 January 2013, Tau Tona and Savuka were mined as one operation.
For the three months ended 31 March 2013
Operations in DRC, Ghana, Guinea, Mali, Namibia and Tanzania
(in $ millions, except as otherwise noted)
DRC GHANA GUINEA MALI NAMIBIA TANZANIA
Continental CONTINENTAL
AFRICA
Kibali Iduapriem Obuasi Siguiri Morila Sadiola Yatela Navachab Geita Africa other TOTAL
All-in sustaining
costs
Cost of sales per - 55 123 91 - - - 17 71 4 361
financial
statements
Amortisation of - (7) (23) (6) - - - (4) (29) (2) (71)
tangible and
intangible assets
Adjusted for - - - 1 - - - - - - 1
decomissioning
amortisation
Inventory writedown - - - - - - - - - - -
to net realisable
value and other
stockpile
adjustments
Corporate 2 - - - - - - - - 2 4
administration and
marketing related
to current
operations
Associates and - - - - 12 19 13 - - 1 45
equity accounted
joint ventures'
share of costs (2)
Sustaining - - 2 5 - 1 - - 2 - 10
exploration and
study costs
Total sustaining - 7 47 8 1 3 - 1 31 - 98
capital expenditure
All-in sustaining 2 55 149 99 13 23 13 14 75 5 448
costs
Adjusted for - - - (15) - - - - - - (15)
non-controlling
interests (1)
All-in sustaining 2 55 149 84 13 23 13 14 75 5 433
costs adjusted for
non-controlling
interests
Gold sold - oz - 43 57 72 15 18 10 14 86 - 315
(000) (3)
All-in sustaining
cost (excluding
stockpile
impairments) per - 1,286 2,608 1,172 883 1,317 1,350 1,005 878 - 1,376
unit -
$/oz (4)
Total cash costs
Total cash costs - 43 86 73 - - - 12 26 - 240
per financial
statements
Adjusted for - - - (11) - - - - - - (11)
non-controlling
interests, non-gold
producing companies
and other (1)
Associates and - - - - 12 21 13 - - - 46
equity accounted
joint ventures'
share of total cash
costs (2)
Total cash costs - 43 86 62 12 21 13 12 26 - 275
adjusted for
non-controlling
interests and
non-gold producing
companies
Retrenchment costs - - 2 - - - - - - - 2
Rehabilitation and - 1 2 1 - - - - 1 - 5
other non-cash
costs
Amortisation of - 7 23 6 - - - 4 29 1 70
tangible assets
Amortisation of - - - - - - - - - 1 1
intangible assets
Adjusted for - - - (1) - - - - - - (1)
non-controlling
interests and
non-gold producing
companies (1)
Associates and - - - - 1 - 1 - - - 2
equity accounted
joint ventures'
share of production
costs (2)
Total production - 51 113 68 13 21 14 16 56 2 354
costs adjusted for
non-controlling
interests and
non-gold producing
companies
Gold produced - oz - 41 49 62 15 19 10 14 66 - 276
(000) (3)
Total cash costs - 1,052 1,742 998 772 1,103 1,316 896 389 - 994
per unit - $/oz (4)
Total production - 1,235 2,290 1,087 841 1,124 1,377 1,221 839 - 1,278
costs per unit -
$/oz (4)
For the three months ended 31 March 2013
Operations in Australia, United States of America, Argentina and Brazil
(in $ millions, except as otherwise noted)
UNITED
STATES
AUSTRALIA OF AMERICA ARGENTINA BRAZIL
TOTAL AngloGold AMERICAS
Ashanti
Sunrise Tropicana Australia AUSTRALIA Cripple Cerro Mineracao Serra Americas TOTAL
Dam other Creek & Vanguardia Grande other
Victor
All-in sustaining
costs
Cost of sales per 87 - 4 91 44 45 97 32 1 219
financial
statements
Amortisation of (13) - (1) (14) (11) (10) (30) (9) (1) (61)
tangible and
intangible assets
Adjusted for - - - - - - - - - -
decomissioning
amortisation
Inventory - - - - - - - - - -
writedown to net
realisable value
and other
stockpile
adjustments
Corporate - - - - 4 - 1 - - 5
administration
and marketing
related to
current
operations
Associates and - - - - - - - - - -
equity accounted
joint ventures'
share of costs
(2)
Sustaining 7 1 3 11 1 3 4 2 - 10
exploration and
study costs
Total sustaining 19 - - 19 1 18 21 7 7 54
capital
expenditure
All-in sustaining 100 1 6 107 39 56 93 32 7 227
costs
Adjusted for - - - - - (4) - - - (4)
non-controlling
interests (1)
All-in sustaining 100 1 6 107 39 52 93 32 7 223
costs adjusted
for
non-controlling
interests
Gold sold - oz 58 - - 58 53 54 99 34 - 241
(000) (3)
All-in sustaining
cost (excluding
stockpile
impairments) per 1,727 - - 1,857 743 955 933 952 - 924
unit -
$/oz (4)
Total cash costs
Total cash costs 76 - 3 79 58 35 63 25 1 182
per financial
statements
Adjusted for - - - - (23) (3) - - 1 (25)
non-controlling
interests,
non-gold
producing
companies and
other (1)
Associates and - - - - - - - - - -
equity accounted
joint ventures'
share of total
cash
costs (2)
Total cash costs 76 - 3 79 35 32 63 25 2 157
adjusted for
non-controlling
interests and
non-gold
producing
companies
Retrenchment - - - - - - 1 - - 1
costs
Rehabilitation - - - - 1 1 - - 1 3
and other
non-cash costs
Amortisation of 13 - 1 14 11 10 30 9 - 60
tangible assets
Amortisation of - - - - - - - - - -
intangible assets
Adjusted for - - - - (3) (1) - - - (4)
non-controlling
interests and
non-gold
producing
companies (1)
Associates and - - - - - - - - - -
equity accounted
joint ventures'
share of
production
costs (2)
Total production
costs adjusted
for
non-controlling
interests and 89 - 4 93 44 42 94 34 3 217
non-gold
producing
companies
Gold produced - 61 - - 61 55 55 92 32 - 234
oz (000) (3)
Total cash costs 1,247 - - 1,302 643 583 689 789 - 668
per unit - $/oz
(4)
Total production 1,460 - - 1,525 803 783 1,028 1,082 - 926
costs per unit -
$/oz (4)
For the year ended 31 December 2013
Operations in South Africa
(in $ millions, except as otherwise noted)
Great Moab Surface South Total South
Africa Africa
Noligwa Kopanang Khotsong Mponeng Savuka(7) TauTona(7) operations other (Operations) Corporate(5)
All-in sustaining
costs
Cost of sales per 103 215 240 347 - 262 226 - 1,393 1
financial
statements
Amortisation of (8) (43) (60) (82) - (51) (9) (253) (9)
tangible and
intangible assets
Adjusted for (1) 1 1 - - - - - 1 (1)
decomissioning
amortisation
Inventory writedown - - - - - - - 1 1 (1)
to net realisable
value and other
stockpile
adjustments
Corporate - - - - - - - 5 5 168
administration and
marketing related
to current
operations
Associates and - - - - - - - - - 2
equity accounted
joint ventures'
share of costs (2)
Sustaining - - - - - - - - - (1)
exploration and
study costs
Total sustaining 14 50 78 95 - 59 16 - 312 9
capital expenditure
All-in sustaining 108 223 259 360 - 270 233 6 1,459 168
costs
Adjusted for - - - - - - - - - -
non-controlling
interests (1)
All-in sustaining 108 223 259 360 - 270 233 6 1,459 168
costs adjusted for
non-controlling
interests
Gold sold - oz 83 178 212 354 - 235 240 - 1,302
(000) (3)
All-in sustaining 1,305 1,255 1,223 1,016 - 1,149 969 - 1,120
cost (excluding
stockpile
impairments) per
unit - $/oz (4)
Total cash costs
Total cash costs 91 163 169 255 - 216 213 - 1,107 (7)
per financial
statements
Adjusted for - - - - - - - - - 6
non-controlling
interests, non-gold
producing companies
and other (1)
Associates and - - - - - - - - - -
equity accounted
joint ventures'
share of total cash
costs (2)
Total cash costs 91 163 169 255 - 216 213 - 1,107 (1)
adjusted for
non-controlling
interests and
non-gold producing
companies
Retrenchment costs 3 5 6 7 - 6 - - 27 -
Rehabilitation and 1 4 6 3 - (10) 3 - 7 1
other non-cash
costs
Amortisation of 7 41 57 77 - 47 8 - 237 6
tangible assets
Amortisation of 1 3 3 5 - 3 - - 15 2
intangible assets
Adjusted for - - - - - - - - - (3)
non-controlling
interests and
non-gold producing
companies (1)
Associates and - - - - - - - - - 1
equity accounted
joint ventures'
share of production
costs (2)
Total production 103 216 241 347 - 262 224 - 1,393 6
costs adjusted for
non-controlling
interests and
non-gold producing
companies
Gold produced - oz 83 178 212 354 - 235 240 - 1,302 -
(000) (3)
Total cash costs 1,100 918 797 719 - 920 883 - 850 -
per unit - $/oz (4)
Total production 1,252 1,210 1,138 978 - 1,117 933 - 1,070 -
costs per unit -
$/oz (4)
(1) Adjusting for non-controlling interest of items included in calculation,
to disclose the attributable portions only. Other consists of heap leach
inventory of Cripple Creek & Victor.
(2) Attributable costs and related expenses of associates and equity accounted
joint ventures are included in the calculation of total cash costs
per ounce and total production costs per ounce.
(3) Attributable portion.
(4) In addition to the operational performances of the mines, all-in
sustaining cost per ounce, total cash costs per ounce and total production
costs per ounce are affected by fluctuations in the currency exchange rate.
AngloGold Ashanti reports all-in sustaining cost per ounce
calculated to the nearest US dollar amount and gold sold in ounces. AngloGold
Ashanti reports total cash costs per ounce and total
production costs per ounce calculated to the nearest US dollar amount and gold
produced in ounces.
(5) Corporate includes non-gold producing subsidiaries.
(6) Total cash costs per ounce calculation includes heap-leach inventory
change.
(7) As from 1 January 2013, Tau Tona and Savuka were mined as one operation.
For the year ended 31 December 2013
Operations in DRC, Ghana, Guinea, Mali, Namibia and Tanzania
(in $ millions, except as otherwise noted)
DRC GHANA GUINEA MALI NAMIBIA TANZANIA
Continental CONTINENTAL
AFRICA
Kibali Iduapriem Obuasi Siguiri Morila Sadiola Yatela Navachab Geita Africa TOTAL
other
All-in sustaining
costs
Cost of sales per - 226 425 324 - - - 49 346 23 1,393
financial statements
Amortisation of - (30) (50) (27) - - - (6) (120) (6) (239)
tangible and
intangible assets
Adjusted for - 1 1 3 - - - - 1 - 6
decomissioning
amortisation
Inventory writedown - 83 4 - - 16 - 24 89 - 216
to net realisable
value and other
stockpile
adjustments
Corporate - - 1 - - - - - - 2 3
administration and
marketing related to
current operations
Associates and 21 - - - 47 118 46 - - - 232
equity accounted
joint ventures'
share of costs (2)
Sustaining - 1 6 18 - 2 - 1 11 - 39
exploration and
study costs
Total sustaining - 22 154 27 13 11 - 5 146 1 379
capital expenditure
All-in sustaining 21 303 541 345 60 147 46 73 473 20 2,029
costs
Adjusted for - - - (52) - - - - - (1) (53)
non-controlling
interests (1)
All-in sustaining 21 303 541 293 60 147 46 73 473 19 1,976
costs adjusted for
non-controlling
interests
Gold sold - oz (000) 40 215 242 272 57 86 28 63 461 - 1,462
(3)
All-in sustaining 529 1,025 2,214 1,085 1,051 1,510 1,653 781 833 - 1,202
cost (excluding
stockpile
impairments) per
unit - $/oz (4)
Total cash costs
Total cash costs per - 190 336 290 - - - 44 237 (3) 1,094
financial statements
Adjusted for - - - (43) - - - - - - (43)
non-controlling
interests, non-gold
producing companies
and other (1)
Associates and 19 - - - 44 114 42 - - - 219
equity accounted
joint ventures'
share of total cash
costs (2)
Total cash costs 19 190 336 247 44 114 42 44 237 (3) 1,270
adjusted for
non-controlling
interests and
non-gold producing
companies
Retrenchment costs - 5 30 - - - - - - 3 38
Rehabilitation and - 7 4 4 - - - (1) - 7 21
other non-cash costs
Amortisation of - 30 50 27 - - - 6 105 18 236
tangible assets
Amortisation of - - - - - - - - - 4 4
intangible assets
Adjusted for - - - (5) - - - - - - (5)
non-controlling
interests and
non-gold producing
companies (1)
Associates and 9 - - - 4 5 4 - - - 22
equity accounted
joint ventures'
share of production
costs (2)
Total production 28 231 420 273 48 119 46 49 342 29 1,586
costs adjusted for
non-controlling
interests and
non-gold producing
companies
Gold produced - oz 40 221 239 268 57 86 27 63 459 - 1,460
(000) (3)
Total cash costs per 471 861 1,406 918 773 1,334 1,530 691 515 - 869
unit -
$/oz (4)
Total production 701 1,047 1,758 1,018 838 1,389 1,702 771 778 - 1,086
costs per unit -
$/oz (4)
For the year ended 31 December 2013
Operations in Australia, United States of America, Argentina and Brazil
(in $ millions, except as otherwise noted)
UNITED
STATES
AUSTRALIA OF AMERICA ARGENTINA BRAZIL
TOTAL AngloGold AMERICAS
Ashanti
Sunrise Tropicana Australia AUSTRALIA Cripple Cerro Mineracao Serra Americas TOTAL
Dam other Creek & Vanguardia Grande other
Victor
All-in sustaining
costs
Cost of sales per 366 64 19 449 201 199 374 133 3 910
financial statements
Amortisation of (67) (27) (3) (97) (21) (35) (103) (41) (1) (201)
tangible and
intangible assets
Adjusted for - - - - - - - - - -
decomissioning
amortisation
Inventory writedown - - - - - - - - - -
to net realisable
value and other
stockpile
adjustments
Corporate - - 1 1 15 - 6 - 1 22
administration and
marketing related to
current operations
Associates and - - - - - - - - - -
equity accounted
joint ventures'
share of costs (2)
Sustaining 12 3 8 23 4 7 14 8 - 33
exploration and
study costs
Total sustaining 39 25 5 69 15 61 118 36 - 230
capital expenditure
All-in sustaining 350 65 30 445 214 232 409 136 3 994
costs
Adjusted for - - - - - (18) - - - (18)
non-controlling
interests (1)
All-in sustaining 350 65 30 445 214 214 409 136 3 976
costs adjusted for
non-controlling
interests
Gold sold - oz (000) 265 58 - 323 231 236 399 141 - 1,007
(3)
All-in sustaining
cost (excluding
stockpile
impairments) per 1,321 1,113 - 1,376 927 912 1,023 970 - 970
unit -
$/oz (4)
Total cash costs
Total cash costs per 306 38 14 358 230 162 253 99 1 745
financial statements
Adjusted for - - - - (61) (12) - - - (73)
non-controlling
interests, non-gold
producing companies
and other (1)
Associates and - - - - - - - - - -
equity accounted
joint ventures'
share of total cash
costs (2)
Total cash costs
adjusted for
non-controlling
interests
and non-gold 306 38 14 358 169 150 253 99 1 672
producing companies
Retrenchment costs - - 1 1 - 1 2 - - 3
Rehabilitation and (4) 2 1 (1) (15) 1 7 (4) 1 (10)
other non-cash costs
Amortisation of 67 27 4 98 21 35 101 40 1 198
tangible assets
Amortisation of - - - - - - 2 - 1 3
intangible assets
Adjusted for - - - - 25 (3) - - - 22
non-controlling
interests and
non-gold producing
companies (1)
Associates and - - - - - - - - - -
equity accounted
joint ventures'
share of production
costs (2)
Total production
costs adjusted for
non-controlling
interests and 369 67 20 456 199 185 364 136 4 888
non-gold producing
companies
Gold produced - 276 66 - 342 231 241 391 138 - 1,001
oz (000) (3) (6)
Total cash costs per 1,110 568 - 1,047 732 622 646 719 - 671
unit - $/oz (4)
Total production 1,341 1,018 - 1,333 864 767 931 991 - 886
costs per unit -
$/oz (4)
Administrative information
ANGLOGOLD ASHANTI LIMITED
Registration No. 1944/017354/06
Incorporated in the Republic of South Africa
Share codes:
ISIN: ZAE000043485
JSE: ANG
LSE: (Shares) AGD
LES : (Dis) AGD
NYSE: AU
ASX: AGG
GhSE: (Shares) AGA
GhSE: (GhDS) AAD
JSE Sponsor: UBS (South Africa)
(Pty) Ltd
Auditors: Ernst & Young Inc.
Offices
Registered and Corporate
76 Jeppe Street
Newtown 2001
(PO Box 62117, Marshalltown 2107)
South Africa
Telephone: +27 11 637 6000
Fax: +27 11 637 6624
Australia
Level 13, St Martins Tower
44 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 772190
Fax: +233 303 778155
United Kingdom Secretaries
St James's Corporate Services Limited
Suite 31, Second Floor
107 Cheapside
London
EC2V 6DN
Telephone: +44 20 7796 8644
Fax: +44 20 7796 8645
E-mail: jane.kirton@corpserv.co.uk
Directors
Executive
RN Duffy^ (Chief Financial Officer)
S Venkatakrishnan*§ (Chief Executive Officer)
Non-Executive
SM Pityana^ (Chairman)
R Gasant^
DL Hogdson^
NP January-Bardill^
MJ Kirkwood*
Prof LW Nkuhlu^
TT Mboweni^
R J Ruston~
* British ^ South African
~ Australian § Indian
Officers
Group General Counsel and
Company Secretary: Ms M E Sanz Perez
Investor Relations Contacts
South Africa
Stewart Bailey
Telephone: +27 637 6031
Mobile: +27 81 032 2563
E-mail: sbailey@AngloGoldAshanti.com
Fundisa Mgidi
Telephone: +27 637 6763
Mobile: +27 82 374 8820
E-mail: fmgidi@AngloGoldAshanti.com
United States
Sabrina Brockman
Telephone: +1 212 858 7702
Mobile: +1 646 379 2555
E-mail: sbrockman@AngloGoldAshantiNA.com
General E-mail enquiries
investors@AngloGoldAshanti.com
AngloGold Ashanti website
http://www.AngloGoldAshanti.com
Company secretarial E-mail
Companysecretary@AngloGoldAshanti.com
Share Registrars
South Africa
Computershare Investor Services (Pty) Limited
Ground Floor, 70 Marshall Street
Johannesburg 2001
(PO Box 61051, Marshalltown 2107)
South Africa
Telephone: (SA only) 0861 100 950
Fax: +27 11 688 5218
Website : queries@computershare.co.za
United Kingdom
Shares
Jersey
Computershare Investor Services (Jersey) Ltd
Queensway House
Hilgrove Street
St Helier
Jersey JE1 1ES
Telephone: +44 870 889 3177
Fax: +44 (0) 870 873 5851
Depositary Interests
Computershare Investor Services PLC
The Pavillions
Bridgwater Road
Bristol BS99 6ZY
England
Telephone: +44 (0) 870 702 0000
Fax: +44 (0) 870 703 6119
Australia
Computershare Investor Services Pty Limited
Level 2, 45 St George's Terrace
Perth, WA 6000
(GPO Box D182 Perth, WA 6840)
Australia
Telephone: +61 8 9323 2000
Telephone: (Australia only) 1300 55 2949
Fax: +61 8 9323 2033
Ghana
NTHC Limited
Martco House
Off Kwame Nkrumah Avenue
PO Box K1A 9563 Airport
Accra
Ghana
Telephone: +233 302 229664
Fax: +233 302 229975
ADR Depositary
BNY Mellon
BNY Shareowner Services
PO Box 358016
Pittsburgh, PA 15252-8016
United States of America
Telephone: +1 800 522 6645 (Toll free in USA)
or +1 201 680 6578 (outside USA)
E-mail: shrrelations@mellon.com
Website: www.bnymellon.com.comshareowner
Global BuyDIRECTSM
BoNY maintains a direct share purchase and
dividend reinvestment plan for ANGLOGOLD
ASHANTI.
Telephone: +1-888-BNY-ADRS
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
JSE Sponsor: UBS (South Africa)
(Pty) Ltd
