Andrea Maxey – VP Corporate Affairs, Community & HR7 August 2019
DIGGERS AND DEALERS
MAKING A DIFFERENCE
Boston Shaker portal preparation, Tropicana, Western Australia
DISCLAIMER
Certain statements contained in this document, other than statements of historical fact, including, without limitation, those concerning the economic outlook for the gold mining industry, expectations regarding gold prices, production, total cash costs, all-in sustaining costs, all-in costs, cost savings and other operating results, productivity improvements, growth prospects and outlook of AngloGold Ashanti’s operations, individually or in the aggregate, including the achievement of project milestones, commencement and completion of commercial operations of certain of AngloGold Ashanti’s exploration and production projects and the completion of acquisitions, dispositions or joint venture transactions, AngloGold Ashanti’s liquidity and capital resources and capital expenditures and the outcome and consequence of any potential or pending litigation or regulatory proceedings or environmental health and safety issues, are forward-looking statements regarding AngloGold Ashanti’s operations, economic performance and financial condition. These forward-looking statements or forecasts involve known and unknown risks, uncertainties and other factors that may cause AngloGold Ashanti’s actual results, performance or achievements to differ materially from the anticipated results, performance or achievements expressed or implied in these forward-looking statements. Although AngloGold Ashanti believes that the expectations reflected in such forward-looking statements and forecasts are reasonable, no assurance can be given that such expectations will prove to have been correct. Accordingly, results could differ materially from those set out in the forward-looking statements as a result of, among other factors, changes in economic, social and political and market conditions, the success of business and operating initiatives, changes in the regulatory environment and other government actions, including environmental approvals, fluctuations in gold prices and exchange rates, the outcome of pending or future litigation proceedings, and business and operational risk management. For a discussion of such risk factors, refer to AngloGold Ashanti’s annual report on Form 20-F for the year ended 31 December 2018, which has been filed with the United States Securities and Exchange Commission (SEC). These factors are not necessarily all of the important factors that could cause AngloGold Ashanti’s actual results to differ materially from those expressed in any forward-looking statements. Other unknown or unpredictable factors could also have material adverse effects on future results. Consequently, readers are cautioned not to place undue reliance on forward-looking statements. AngloGold Ashanti undertakes no obligation to update publicly or release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events, except to the extent required by applicable law. All subsequent written or oral forward-looking statements attributable to AngloGold Ashanti or any person acting on its behalf are qualified by the cautionary statements herein.
The financial information in this document has not been reviewed or reported on by the Company’s external auditors.
Non-GAAP financial measuresThis 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.
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AGENDA
Update on portfolio and strategic
direction
How we are delivering value
Community contribution
3
WORLD-CLASS GLOBAL PORTFOLIO
Gold Production (2018)
3.4 Moz
AISC (2018)US$765/oz
4
WORLD CLASS PORTFOLIO – AUSTRALIAN ASSETS
Gold Production (2018)
625,000 oz
AISC (2018)US$762/oz
Employees~ 650
Contractors~ 800
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STRATEGY – SUSTAINABLE CASHFLOW IMPROVEMENT AND RETURNS
Towards zero harm, excellence in environmental stewardship, community
development
Ongoing portfolio improvements
through investment and rationalisation
Consistent delivery; improving cost
management, focus on enhancing
margins
Decisive action on operations; balance sheet
flexibility remains a
priority
Maintaining optionality to
deliver value-adding
growth over the long term
CORE STRATEGIC FOCUS AREAS
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MARGIN IMPROVEMENT
700
900
1,100
1,300
2013 2014 2015 2016 2017 2018 Q1 2019
All-in Sustaining Costs vs. Gold PriceUS$/oz
AISC* Avg Gold Price*World Gold Council standard
REINVESTMENT
CONTINUOUS IMPROVEMENT RESTRUCTURING
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14%margin
19%margin
21%margin
21%margin
16%margin
23%margin
22%margin
BALANCE SHEET STRENGTH – DISCIPLINED CAPITAL MANAGEMENT
0
1
2
3
4
2013 2014 2015 2016 2017 2018 2019 Q1
1.27X
Net Debt to Adjusted EBITDA
Covenant 3.5X
1.0X New Target
through the cycle
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AGENDA
Update on portfolio and strategic
direction
How we are delivering value
Community contribution
9
Production: 2,908 koz
AISC: US$923/oz
Production: 421 koz
AISC: US$1,139/oz
Australia
TanzaniaDRC
Mali
GhanaGuinea
Brazil
Argentina
Colombia
South Afr ica Operat ions Q1 2018 – Q1 2019
In ternat iona l Operat ions Q1 2018 – Q1 2019
South Africa
DELIVERING VALUE: PORTFOLIO RESTRUCTURE
Countries where AGA operates 10
DELIVERING VALUE: SOUTH AFRICA REVIEW
• Restructuring has created a focused, cash-generative South African portfolio
• Mponeng underground mine requires a significant investment in the medium term to extend life beyond eight years
• Life extension option competes for capital with other higher-return projects in the portfolio
• Review of divestment options underway, taking into consideration the best outcome for all stakeholders
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DELIVERING VALUE: INVESTMENT IN OBUASI
2014 – Decision to close the mine
2016 - Care & maintenance; optimised feasibility study
2018 – Parliamentary ratification of agreements; project commencement
2019 – Official launch of the redevelopment project
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GHANA
DELIVERING VALUE: INVESTMENT IN OBUASI
Key Metrics
Gold produced: 8.59 Moz over 21 years
Annual gold production first 10 years: 350,000 – 400,000 oz
Annual gold production second 10 years: 400,000 – 450,000 oz
Average head grade: 8.8 g/t
AISC*: US$725-$825/oz
Total project capex: US$580-$630 million
IRR**: 16%-23%*Money terms at approval.**Based on a gold price of US$1,100-$1,240/oz.
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DELIVERING VALUE: INVESTMENT IN OBUASI
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.…Full mine redesign incorporating existing and some new infrastructure … …
…to implement large scale, modern mechanized mining.
DELIVERING VALUE: INVESTMENT IN OBUASI
…… in two phases.to deliver 2,000 tpd by end 2019 and 4,000 tpd by end 2020.15
Processing plant flowsheet –new build and refurbishment ….…
DELIVERING VALUE: INVESTMENT IN OBUASI - PROGRESS TO DATE
Project is on schedule and on budget
First development blast took place successfully in early February
Project on track to deliver first gold at the end of 2019
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DELIVERING VALUE: INVESTMENT IN TROPICANA
• Commissioned second ball mill
• Ramp up to design tonnage (960 tph) achieved within three shifts
• Design grind achieved within one week
• Concept to commissioning - Sept 2017 to Nov 2018
• Further optimisation work has shown potential for >1,000 tph
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DELIVERING VALUE: INVESTMENT IN TROPICANA
Exceeded feasibility
parameters
Consistently achieved and
exceeded production and cost guidance
Improved production profile and enhanced cashflow – mine life extended to 202918
DELIVERING VALUE: INVESTMENT IN TROPICANA – BOSTON SHAKER
Boston Shaker Key Metrics* (100%)
Life of mine underground gold production: 732,000 oz over 8 years
Ave. underground ore production: 1.1 Mtpa
Average underground gold grade: 3.84 g/t
Average annual gold production from Boston Shaker underground: 105,000 oz
AISC*: US$725-$825/oz
Capital investment: A$105.7 million
IRR: 39%
*Gold price assumption: USD1,240/oz; AUD1,654/oz
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DELIVERING VALUE: INVESTMENT IN TROPICANA – BOSTON SHAKER
North part of mine
VOG South and at depth
Carey Shear and COE
Elle / MWS
TGMPlant
TSF
ROMBoston Shaker
TropicanaHavana
UG exploration potential
Conceptual target
UG exploration potential
0.3 g/t Wireframe
3.0 g/t Grade shell
Havana South
N1 km
Havana Deeps
UG exploration potential
Stg 3
Havana South HGZ
Havana NE Flank
Stg 2
Stg 1
UG exploration
potential
With the commencement of Boston Shaker Underground…
…there is potential to exploit additional underground opportunities.20
DELIVERING VALUE: SUNRISE DAM EXPLORATION
World class ore body; remains open along strike and depth. 21
900m
DELIVERING VALUE: SUNRISE DAM OPERATIONAL EXCELLENCE
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• Hybrid communications platform underground
• Underground Mine Management System implemented
• Safety enhancement through situational awareness technology
• Remote bogging from surface to improve productivity
Technology transformation will deliver mine to mill visibility…
…acting as a key enabler to improve safety and productivity.
AGENDA
Update on portfolio and strategic
direction
How we are delivering value
Community contribution
23
COMMUNITY: LOCAL PROCUREMENT
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Spend in Last 5 Years
$387MVendors across the Goldfields
301Annual local government
spend
$9.4M
$85M $84M$78M $75M
$65M YTD
2015 2016 2017 2018 2019
Annu
al s
pend
Total annual AGAA spend in the Goldfields region
$25.6MRoyalties paid to WA Government in 2018
COMMUNITY: INVESTMENT
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Students in the Dandjoo Darbalung programme. Eastern Goldfields College students participating in the Leeuwin Ocean Adventure.
COMMUNITY: LOCAL EMPLOYMENT
26Kalgoorlie Girls Academy - careers visit to Tropicana
Graduate ceremony – Get Into Mining Programme.
SUMMARY
Premier gold investment with diverse
global portfolio
Update on portfolio and strategic direction
Obuasi, Tropicana Boston Shaker,
Operational Excellence
How we are delivering value
Long term partnerships and investment
Community contribution
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