Edgar Filing: ANGLOGOLD ASHANTI LTD

Page 1

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 OF

THE SECURITIES EXCHANGE ACT OF 1934

Report on Form 6-K dated March 31, 2015

Commission File Number 1-14846

AngloGold Ashanti Limited

(Name of registrant)

76 Jeppe Street

Newtown, 2001

(P.O. Box 62117, Marshalltown, 2107)

South Africa

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form
20-F or Form 40-F.

Form 20-F X Form 40-F

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by
Regulation S-T Rule 101(b)(1):

Yes

No X

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by
Regulation S-T Rule 101(b)(7):

Yes

No X

Indicate by check mark whether the registrant by furnishing the information contained in this Form
is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the
Securities Exchange Act of 1934.

Yes

No X

Enclosure: ANGLOGOLD ASHANTI INTEGRATED REPORT FOR THE YEAR ENDED

DECEMBER 31, 2014

INTEGRATED
REPORT

2014

A TRULY

GLOBAL

PRODUCER OF GOLD

OUR

MISSION

To create value for our shareholders,

our employees and our business and

social partners through safely and

responsibly exploring, mining and

marketing our products. Our primary

focus is gold, but we will pursue

value creating opportunities in other

minerals where we can leverage our

existing assets, skills and experience

to enhance the delivery of value.

OUR VISION

OUR VALUES

Safety is our ﬁrst value.

We place people ﬁrst and correspondingly put the highest priority on safe and healthy practices and systems of work. We are responsible for seeking out new and innovative ways to prevent injury and illness in our business and to ensure that our workplaces are free of occupational injury and illness. We live each day for each other and use our collective commitment, talents, resources and systems to deliver on our most important commitment .... to care.

We treat each other with dignity and respect.

We believe that individuals who are treated with respect and who are entrusted to take responsibility, respond by giving their best. We seek to preserve people’s dignity, their sense of self-worth in all our interactions, respecting them for who they are and valuing the unique contribution that they can make to our business success. We are honest with ourselves and others, and we deal ethically with all of our business and social partners.

We value diversity.

We aim to be a global leader with the right people for the right jobs. We promote inclusion and team work, deriving beneﬁt from the rich diversity of the cultures, ideas, experiences and skills that each employee brings to the business.

We are accountable for our actions and
undertake to deliver on our commitments.

We are focused on delivering results and we do what

we say we will do. We accept responsibility and hold

ourselves accountable for our work, our behaviour,

our ethics and our actions. We aim to deliver high

performance outcomes and undertake to deliver on

our commitments to our colleagues, business and

social partners, and our investors.

We want the communities and societies in
which we operate to be better off for
AngloGold Ashanti having been there.

We uphold and promote fundamental human rights where we do business. We contribute to building productive, respectful and mutually beneﬁcial partnerships in the communities in which we operate. We aim to leave a legacy of enduring value.

We respect the environment.

We are committed to continually improving our processes in order to prevent pollution, minimise waste, increase our carbon efﬁciency and make efﬁcient use of natural resources. We will develop innovative solutions to mitigate environmental and climate risks.

To be the

LEADING

mining company

CONTENTS

P4-13

INTRODUCTION

Our 2014 suite of
reports

Scope and boundary
of report

Directors’ statement of
responsibility

Chairman’s letter

P14-25

BUSINESS CONTEXT

Corporate proﬁle

Business model

Timeline of corporate
activity

Analysis of our external
environment

P26-41

STRATEGY

Our strategy

Performance against
strategic objectives

Managing and
mitigating risks

Stakeholder
engagement and
materiality

SUSTAINABLE

FREE CASH FLOW

IMPROVEMENTS

AND RETURNS

OUR STRATEGY

P42-63

LEADERSHIP

CEO’s review and
strategic outlook

CFO’s report

Letter from Chairman
of the Audit and Risk
Committee

Board of directors

Executive management

Managing our human
resources

INTEGRATED REPORT

2014

P137-145

SHAREHOLDER
AND CORPORATE
INFORMATION

138

Shareholder information

142

Glossary of terms and
abbreviations

144

Forward-looking
statements

145

Administration

We strive to
generate free cash
ﬂow and returns
to shareholders,
after funding
our investment
requirements and
servicing our debt.

P119-136

ACCOUNTABILITY

120

Corporate governance

130

Remuneration and
performance

136

Approvals and
assurances

P64-118

PERFORMANCE REVIEW

Highlights of the year

Five-year summaries:
ﬁnancial

Economic value-added
statement

Regional reviews

Mineral Resource and
Ore Reserve overview

100

Five-year statistics: by
operation

111

Planning for the future

118

One-year outlook

Our primary

platform for reporting

is our online reporting website

www.aga-reports.com

THE

2014

SUITE OF REPORTS INCLUDES:

OUR 2014 SUITE OF REPORTS

>IR

Integrated Report 2014

>SDR

Sustainable Development Report 2014*

>R&R

Mineral Resource and Ore Reserve Report 2014

>AFS

Annual Financial Statements 2014

>OPS

Operational Proﬁles 2014**

>NOM

Notice of Annual General Meeting and Summarised
Financial Information 2014 (Notice of Meeting)

This report is an online report. A summary
report is available as a PDF.

** The operational proﬁles will be available on

the website by the end of April 2015.

INTEGRATED REPORT

2014

SCOPE AND BOUNDARY OF REPORT

This Integrated Report 2014 is the primary report in our suite of reports
for the ﬁnancial year 2014. This report provides a concise overview
of the performance of AngloGold Ashanti Limited (AngloGold Ashanti) –
both ﬁnancial and non-ﬁnancial – in terms of our strategic objectives.
It also explains the interdependence of the ﬁnancial and non-ﬁnancial
aspects of our business.

While the 2014 suite of reports covers the period from 1 January to 31 December 2014,

also noted are material events that have occurred subsequent to the year end and up to the

reports’ approval by the board on 19 March 2015.

To facilitate communication with its stakeholders, AngloGold Ashanti has a dedicated annual

reporting website, www.aga-reports.com, which hosts online versions of the integrated and

sustainable development reports as well as PDFs of the full suite of reports. In compliance

with stock exchange requirements and legislation, the Notice of Meeting has been posted

to shareholders.

COMPILATION OF THIS INTEGRATED REPORT

In compiling this report, we have been guided by the International Integrated Reporting

Committee’s framework on integrated reporting. The related principles, concepts and content

elements have been adapted to meet our speciﬁc operating and business circumstances. This

report depicts an holistic account of our business – both the ﬁnancial and non-ﬁnancial objectives

and our performance against them – and describes our vision for the future. We have identiﬁed

and engaged a diverse range of stakeholders during the year and their inputs have shaped the

content of this report.

We have also taken account of those issues that are considered most important to the group’s

future sustainability. These issues were identiﬁed by means of a combined assurance process

and by taking into account the views expressed by our stakeholders. Underpinning this report

is a discussion of risks and material issues. For a detailed discussion of AngloGold Ashanti’s

material sustainability issues during the reporting period, please refer to the Sustainable

Development Report 2014 (

>SDR

AngloGold Ashanti is committed to the progressive implementation of integrated reporting

at all levels of our business. Under the guidance of the Audit and Risk Committee (Audit

Committee), a combined assurance model was adopted by AngloGold Ashanti to provide a

co-ordinated approach to all assurance activities and to facilitate group-wide integration by

leveraging the various controls, governance and assurance processes. Although normally

part of the process, during 2014, technical assurances were excluded from the coordinated

combined assurance reviews.

All operations within AngloGold Ashanti were subjected to risk-based, integrated, combined

assurance reviews focusing on commercial, safety and sustainability aspects of the business.

The outcome of these reviews, as well as the independent technical reviews conducted,

provided reasonable assurance to allow the board, on the recommendation of the Audit and Risk

Committee, to determine the effectiveness of the group’s system of internal controls. This report

has also been produced in line with the recommendations of the King Report on Governance for

South Africa 2009 (King III) and the Listings Requirements of the Johannesburg Stock Exchange

(JSE), the base of our primary listing.

INTRODUCTION

“

This report depicts

an holistic account
of our business and
describes our vision
for the future.

”

Note: AngloGold Ashanti reports
its group ﬁnancial information in
US dollars ($) in all its reporting
and so, unless otherwise stated,
the use of ‘$’ refers to US dollars.

SCOPE AND BOUNDARY OF REPORT

continued

BOUNDARY OF REPORT

This Integrated Report 2014 (>IR) covers our global operations and while we have a diverse range of stakeholders, each with their own speciﬁc information requirements, this report is aimed primarily at investors and the providers of capital. Stakeholders are referred to other reports in this suite and the >SDR, in particular, for additional non-ﬁnancial information. In addition, individual business proﬁles reviewing our performance at an operational level are available at www.aga-reports.com.

The content of this integrated report is based on our overarching strategy, the primary aim of which is to create value by generating sustainable free cash ﬂow improvements and returns. It describes what we have done to create value and achieve our stated strategic objectives in the past year, what we have used to do this, what impact we have had in so doing, the risks we have faced, what circumstances have affected our ability to generate value and how well we have performed towards our goal of creating value.

Our Annual Financial Statements 2014 (>AFS) are prepared in accordance with International Financial Reporting Standards (IFRS) and our Mineral Resource and Ore Reserve Report 2014 (>R&R) information is in line with the SAMREC and JORC codes. As this is a group-level report, operational targets and performance are discussed at a regional rather than operational level, although some operational detail is provided where appropriate. Detailed information, including maps of our exploration activities with respect to both our greenﬁelds and brownﬁelds studies, is available on the AngloGold Ashanti website, www.anglogoldashanti.com.

Our reports cover all operations and entities in which the group has a controlling interest and which are under our management. We do not report on non-ﬁnancial information for our Morila and Kibali operations, which are managed and operated by our joint venture partner Randgold Resources Limited.

Information relating to joint ventures and other interests is provided for context and where this is deemed to be material. Production and capital expenditure are expressed on an attributable basis, unless otherwise indicated. Employee data, average workforce data, including employees and contractors, are reported for AngloGold Ashanti with joint ventures being reported on an attributable basis. Although the employee and workforce data reported includes both our employees and contractors, AngloGold Ashanti does not directly employ a contractor workforce.

CORPORATE CHANGES DURING 2014

In response to the sharp drop in gold prices in 2013, AngloGold Ashanti underwent signiﬁcant restructuring to address its cost base. In 2014 we continued to evaluate options to reduce costs and improve margins, with a view to addressing overall debt levels, by employing a range of interventions including continued rigorous focus on costs and the active management of the portfolio to improve its overall quality. This portfolio management led to a number of key operational decisions, including initiation of the process to close the Yatela mine in Mali; the sale of the Navachab mine in Namibia after it was deemed non-core; progression of the

REPORT AUDIENCE

While the primary audience of this
report is the providers of ﬁnancial
capital, which is in line with the
International Integrated Reporting
Framework’s guidelines, this is not
exclusively so. These providers of
capital include shareholders (both
direct and indirect), ﬁnanciers and
potential investors. Other interested
parties and other stakeholders such
as our employees, government, non-
government organisations (NGOs)
and business and social partners are
encouraged to review this report in
conjunction with other reports in our
2014 suite of reports. In particular,
the

>SDR

discusses AngloGold

Ashanti’s performance in terms
of non-ﬁnancial data. Refer to the
Scope and Boundary of that report
at www.aga-reports.com/14/sdr/
reporting/scope-boundaries

INTEGRATED REPORT

2014

DIRECTORS’ STATEMENT OF RESPONSIBILITY

life-extending projects at Mponeng Phase 1 and at Cripple Creek & Victor; and the transition

of the Obuasi mine in Ghana to limited operations mode, a decision which resulted in the

retrenchment of the workforce and the cessation of underground mining while a feasibility

study on a mechanised mine is being completed. Cost management activities necessitated

retrenchments contributing to the 13% decline in the average number of our workforce during

the year.

EVENTS SUBSEQUENT TO YEAR END

Post year end, AngloGold Ashanti announced that plans were underway to consider a joint

venture or sale for value of the Cripple Creek & Victor mine in the United States and to consider

the sale for value of its interests in the Sadiola and Yatela mines in Mali. For further details, see

page 50 in the CFO’s report

>IR

APPROVALS AND ASSURANCE

Following the recommendation of the Audit Committee, AngloGold Ashanti’s suite of 2014

reports for the year ended 31 December 2014, including the

>AFS

, were reviewed and

approved by the board of directors on 19 March 2015.

In accordance with the Companies Act No. 71 of 2008, as amended, the Annual Financial

Statements 2014 were audited by the company’s independent external auditors, Ernst & Young

Inc., whose unqualiﬁed audit opinion may be found on page 41

>AFS

. Certain sustainability

information in our reports has been assured by Ernst & Young Inc., whose combined reasonable

and limited assurance statement may be found in the

>SDR

INTRODUCTION

It is the responsibility of the Board of Directors of AngloGold Ashanti to
ensure the integrity of the Integrated Report 2014.

The board has reviewed this Integrated Report 2014 and in its opinion, this report addresses

all material issues and presents fairly the integrated performance of the organisation and

its impacts.

This report has been prepared in line with best practice pursuant to the recommendations of

the King III Code (principle 9.1).

Sipho M Pityana

Wiseman Nkuhlu

Chairman

Deputy Chairman

Srinivasan Venkatakrishnan

Christine Ramon

Chief Executive Ofﬁcer

Chief Financial Ofﬁcer

19 March 2015

CHAIRMAN’S LETTER

In reﬂecting on what has been a challenging year for the gold market in
general, it is worth casting one’s mind back to the achievements of the past
24 months as we’ve sought to ensure the sustainability of the business.

Over this period, the management team at AngloGold Ashanti has taken decisive action to

weather a turbulent market, notably by making deep and sustainable cuts on all expenditure

and improving the quality of the portfolio by bringing into production two new, low-cost mines

while making the difﬁcult decision to close and sell others. The effectiveness of this endeavour

is evidenced by the 22% drop in all-in costs in 2014. All of this has been done while recording

our best ever safety performance. These impressive achievements were realised through

management’s resolute application of the necessary discipline.

In October 2014 I took part in a dialogue between a number of Christian churches and the mining

industry, “The ecumenical reﬂections on mining”, that was held at Lambeth Palace in London. It

was a culmination of an initiative by AngloGold Ashanti in 2013, which saw us deliberate, together

with other mining houses and the Vatican, to open a frank conversation about responsible mining

and shared value; the latter embracing the concept that business competitiveness and social

and community wellbeing are inter-dependent. These initiatives coincide with the UN initiative

to develop a set of sustainable development goals (SDGs). All these deliberations bring into

sharp focus the central question in our world, our societies and our enterprise: Can we positively

contribute to the sustainable development of both the eco-system and the people? Our values

at AngloGold Ashanti unambiguously mandate us to do so.

This conversation took place in the midst of commodity market stagnation at best, deterioration

at worst. The year 2014 saw continuing decline in the gold market, with the average gold price

received at $1,264/oz, almost 10% below the 2013 price of $1,401/oz and 24% below the

2012 equivalent. The decline in the currencies in most of our operating economies has done no

more than maintain local gold prices, and this, in an environment of increasing energy, labour

and other costs.

The Lambeth discussion, not unjustiﬁably, focused on the negative legacy of the industry

as “a ruthless extractor of value with harmful consequences for communities”. It is a legacy

that, as a new generation of leaders in the industry, we must acknowledge as part of our

determination to fashion a different outcome, one that will result in all stakeholders viewing us

as a reliable partner in the realisation of the SDGs. However, we also recognise that our ability

to play such a role will always depend on ensuring that mining is a viable enterprise from which

shareholders can earn reasonable returns. Achieving this depends on the combined efforts of

all stakeholders in a relationship of mutual trust.

Notwithstanding some negative legacies, mining has also been a positive contributor to low and

middle income economies. A recent research publication of the International Council on Mining

and Metals (ICMM), of which we are a founding member, has developed a Mining Contribution

Index, which you will ﬁnd of great interest. Our operating jurisdictions: the Democratic Republic

of the Congo (DRC), Guinea and Tanzania are in the top 25 countries, with Colombia not far

behind. The table and graph clearly show how this manifests in some of the countries in which

we operate.

DELIVERING RETURNS

We are encouraged by our shareholders’ support of both our company strategy and our vision

of shared value and responsible mining. In striving to generate free cash ﬂow and positive

sustainable returns to shareholders, we continue to deliver on the fundamentals of our strategy,

the key objectives of which are clearly articulated in both the CEO’s and the CFO’s reports and

covered in detail in this report.

Sipho M Pityana

Chairman

“

The management

team at AngloGold
Ashanti has taken
decisive action to
weather a turbulent
market.

”

INTEGRATED REPORT

2014

Our new operations that started pouring gold in 2013, Kibali in the DRC and Tropicana in

Australia, are now a year old and together contributed 595,000oz in 2014, making signiﬁcant

contributions to cash ﬂow. For the ﬁrst time, the DRC project is making a positive contribution

to our business and to that economy. Australia contributed 14% of our gold production,

compared with 8% previously. However, the precipitous fall in gold prices over the past two

years meant we have had to withdraw from our Mongbwalu project in the DRC. We are grateful

to the government of the DRC for its cooperation in this regard. In Namibia, we sold a non-

core asset, the Navachab mine, as a result of a review of our portfolio. In Mali, we are also at

an advanced stage of disposing off the assets. We have progressed discussions as promised

to shareholders, to either joint venture or sell our interest in Cripple Creek & Victor in the US.

This, at the same as we continue to consider other asset sale options. In all these processes,

we have worked closely with the relevant stakeholders to take care of mutual interests to the

extent possible. We are appreciative for the cooperation of all concerned.

We have had to take different decisions to reposition our persistently loss making, yet high-

grade ore body, Obuasi mine in Ghana. This entailed the retrenchment of the entire labour force.

The mine is currently at limited operation mode, while we conduct a feasibility study that will

consider transforming Obuasi into a modern, mechanised operation. As we look at the options

available to ﬁnance and operate Obuasi into the future, we are also exploring options to reduce

risk while maintaining exposure to the upside of this resource by considering a joint venture

with another industry or ﬁnancial partner. We would not have achieved the progress we have

made in this initiative without the support, understanding and encouragement of stakeholders;

particularly the trade unions, government and the community. We remain conﬁdent that this

partnership will carry us to the critical stage that will lead to the reopening and improved

operation of this excellent asset.

Mining Contribution Index by country

Mining Contribution Index calculation

Country by MCI ranking

Population

growth

2000 - 2012

(%)

Human

Development

Index (HDI)

Export

contribution

from metals

and coal

(%)

Change

in export

contribution

2007 – 2012

(% of %)

2012 metals

and coal

production

value

(% of GDP)

Mining

Contribution

Index (MCI)

4. DRC

0.34

81.5

12.4

18.0

95.88

7. Guinea

0.39

60.1

9.1

34.7

94.79

13. Australia

0.93

57.3

8.9

10.0

89.86

21. Namibia

0.62

53.4

1.8

11.6

82.51

24. Tanzania

0.49

35.3

4.3

8.9

81.81

35. Colombia

0.71

19.9

2.8

3.5

78.00

36. Brazil

0.74

17.3

5.0

3.0

75.31

59. South Africa

0.66

38.8

(6.5)

17.1

62.43

60. Mali

0.41

42.3

(9.3)

20.7

62.27

62. Ghana

0.57

17.6

(0.7)

12.5

62.08

65. Argentina

0.81

6.8

2.0

0.9

61.59

67. United States

0.91

7.7

1.5

0.8

60.88

82. Russian Federation

(2)

0.78

9.6

(0.7)

4.4

54.39

Mining contribution index score

Above 80

60-80

40-60

“

We have worked

closely with the
relevant stakeholders
to take care of mutual
interests to the extent
possible. We are
appreciative for the
cooperation of all
concerned.

”

Source: The role of mining in national economies (2

edition),

ICMM (available at http://www.icmm.com/document/7950)

INTRODUCTION

CHAIRMAN’S LETTER

continued

All of these measures are designed to ensure that the company works toward operating only

top class assets across diverse geographies where we are able to effectively bring to bear our

technology, skills and ﬁnancial capabilities. We have increased gold production while delivering

good savings, through focused cost management initiatives, including signiﬁcant reductions

in staff numbers, particularly at corporate, regional and country ofﬁces. Although we have

simultaneously exited a few exploration sites, we have signiﬁcantly reduced exploration spend,

and we have made good progress in our exploration portfolio. In Colombia, we have been

successful in delineating a number of gold and copper-gold ore bodies resulting in a set of

opportunities too extensive for AngloGold Ashanti to undertake alone. Consequently, we are

exploring opportunities for partnerships or sale for value where we believe our assets stand to

make a positive contribution to the country’s mining landscape.

There has been good progress from our Technology and Innovation Consortium, with the goal

of extracting otherwise sterilised gold reserves in South Africa from support pillars and enabling

mining beyond current depths of about 4,000m. Nonetheless, South Africa’s mining industry is

in desperate need of a new strategy that deﬁnes its role and place in the country’s agenda for

growth. We must not lose out on future commodity booms. The leaders of industry, government

and the trade unions owe it to the country to show urgency in developing such a strategy, rather

than indulging in a fratricidal inward-looking ﬁght to the ﬁnish. Our position in the international

mining leadership stakes has already declined. The cost this time may be the industry itself.

FOREIGN DIRECT INVESTMENT (FDI)

Mining FDI often dominates the total flow of FDI in low-income economies

that have only limited other attractions for international capital

60-90%

of total FDI

30-60%

of total exports

3-20%

of government revenues

3-10%

of total national income

1-2%

of total employment

EXPORTS

Mineral exports can rapidly rise to be a major share of total

exports in low-income agrarian economies even when

starting from a low base

GOVERNMENT REVENUE

Mineral taxation has become a very significant source

of total tax revenues in many low-income economies

with limited tax-raising capacity

NATIONAL INCOME (GDP AND GNI)

Modern-day mineral processing technology

is sophisticated and highly capital intensive;

locations are centralised as a result and

most upstream value addition takes place

outside the mine-host country

EMPLOYMENT

Mine employment on its own is

usually small relative to the total

national labour force

Macro-level contributions of mining in low- and middle-income countries

Source: ICMM (various years) and Oxford Policy Management (various years).

“

We are encouraged

that the South
African Minister of
Mineral Resources
shares our view that
policy uncertainty is
undesirable.

”

INTEGRATED REPORT

2014

The South African gold industry needs rationalisation in order to realise economies of scale,

optimise the search for new technologies, and to enable a paradigm shift to a better educated

and skilled workforce, capable of higher productivity and wage levels earned in a healthier

and safer mining environment. Failure to do this will shorten its already dwindling future and

compromise jobs and economic growth. These considerations were at the heart of our

restructuring proposal of 2014 which took into account broader developments in the sector.

HEALTH AND SAFETY

Our commitment to confront the negative legacy of the industry’s past has positioned our

business well and seen us protect the interests of our stakeholders very well. We have

been able to do this because we are not just about compliance, but about lifting our values.

Mines that were once prone to high injuries and fatalities now enjoy record breaking safety

performance. This is despite the earthquake that struck some of our South African mines

in August. In the last ﬁve years, the number of fatalities has dropped from 15 in 2010 to

six in 2014. Four of the 2014 fatalities were in South Africa’s ultra-deep level mines. We

are saddened by those deaths, in respect of which I convey our heartfelt condolences to

the families, friends, communities and colleagues of Mncedi Ponti, Maﬁkizolo Sikhumbuzo

Ngwenya, Thembinkosi Dubazane, and Lwazi Bovungana from the South African operations

and Luiz Alberto Santos Cerqueira, and Thiago Luiz de Oliveira from Brazil. Although we are

encouraged by our progress in this regard, one death on any of our mines is one too many

and we cannot rest until all of our operations are completely safe.

We have over the years made great progress in establishing a healthier work environment,

from our groundbreaking HIV prevention and treatment work, to signiﬁcant reductions in the

incidence of occupational lung disease, thanks to improved underground dust management,

vastly improving living conditions in company-provided accommodation. In fact, together with

Anglo American, Gold Fields, Harmony and Sibanye Gold, we announced in November 2014

an industry working group to address issues relating to fair compensation and medical care

for occupational lung disease (OLD). The companies have begun to engage all stakeholders

on these matters, including government, organised labour, other mining companies and legal

representatives of claimants who have ﬁled legal suits against the companies. We are seeking a

comprehensive solution which deals both with the legacy compensation issues and future legal

frameworks, and which, while being fair to employees, also ensures the future sustainability of

companies in the industry.

EMPOWERMENT

Guided by the spirit of an industry agreed Mining Charter, AngloGold Ashanti can proudly

claim to have played a central part in deracialising patterns of ownership in the South African

economy resulting in one of our beneﬁciaries of this programme becoming the country’s ﬁrst

black billionaire. This at the same time as we ensured a successful Employee Share Ownership

Scheme (ESOP), a procurement programme aimed at mainstreaming black and women

suppliers as well as a range of enterprise development initiatives. The renovated employee

accommodation is a far cry from the old hostels that were an assault on the human dignity of

our workers. We remain committed to improve the living conditions of our employees including

a search for a solution to the negative consequences of the migrant labour system, initiatives to

address employee indebtedness, where irresponsible lenders and debt administrators severely

curtail their spending power.

This inclusive approach is delivered in varied ways in different jurisdictions often guided by

prevailing policy frameworks. Our leadership appointments and talent management for

instance, whilst single mindedly driven by the principle of merit and best person for the job,

we have been able to address expectations for localisation and employment equity with great

success. This is even though we recognise the need for an improvement in the number of

African women in the executive leadership.

“

The leaders of

industry, government
and the trade unions
owe it to the country...
[to develop a] new
strategy that defines
its role and place in
the country’s agenda
for growth.

”

INTRODUCTION

CHAIRMAN’S LETTER

continued

In the review of the Mining Charter, while we are encouraged by the progress made in the

professional assessment towards the commonly agreed industry transformation agenda, we

trust that the outcome of this will be used objectively and fairly to ensure that those that

have thus far failed to comply are brought along. For reasons already discussed, we would

strongly advise against a shifting of the goal posts on empowerment. We are encouraged

that the South African Minister of Mineral Resources shares our view that policy uncertainty

is undesirable. In a similar vein, we trust that the previous agreements reached between

government and the Chamber of Mines in respect of the Mineral and Petroleum Resources

Development Amendment Bill, which the President recently returned to South Africa’s National

Assembly, will be maintained.

ARTISANAL SMALL-SCALE MINERS

Regulatory certainty is required in other jurisdictions as well to enable us to pursue our vision

of shared value in mining. This is particularly so with regard to artisanal and small-scale mining

(ASM). As AngloGold Ashanti we regard ASM as a legitimate entrepreneurial activity. After

all, in many cases these are miners we found engaged in tenements we were allocated, and

long after we will have left they will remain active. The absence of a permissive regulatory

regime in some jurisdictions may inadvertently criminalise a legitimate economic activity. In

communities where we operate, the company supports a formalisation of the ASM sector

wherever possible. This affords us an opportunity to empower these entrepreneurs to embrace

healthy and safe practices, protective of the environment and also adhere to decent work

standards that we encourage.

In the Americas, our engagements with the ASM, for instance in the Gramalote concession,

included establishing alternative livelihoods, including employment with the company, driven

through a co-existence initiative, to promote the formalisation of the ASM activities and the use

of improved technology for the artisanal extraction of gold, allowing for higher yields and lower

impacts on the environment, as well as the integral development of the value chain.

At Geita, through a multi-stakeholder partnership initiative, together with the government of

Tanzania and the World Bank, we have established a management advisory group that will

pilot an operation in Lwamgasa village, whose aim is the formalisation of the ASM sector

as a long-term sustainable solution. The pilot project was launched in September 2014 and

it is anticipated that the geological evaluation will be completed in 2015, after which the

construction of the small-scale mine will commence. This will be accompanied by training of

the miners in safer methods of mining, mercury-free gold processing and other approaches

that are more efﬁcient, safer and environmentally friendly.

LABOUR RELATIONS

We pride ourselves on the positive relations we have usually enjoyed with our employees and

their representative unions in the various jurisdictions. As a result of this relationship, great strides

have been made in an industry that had a reputation of repression and unbridled exploitation.

Today the entry level wages of our South African workers compare favourably to those of other

industrial sectors. However, the differential between the lowest and the highest paid employee

is disturbingly high. This is an untenable structural problem that requires carefully considered

and sustainable resolution. We support the government initiated engagement process on

labour relations that is led by Deputy President Cyril Ramaphosa and involves business, labour,

government and community. Its purpose is to ﬁnd solutions to this challenge as well as that of

adversarial labour relations that are sometimes characterised by violence and unusually long

strikes. AngloGold Ashanti has made a signiﬁcant contribution to the discourse by allowing me

to convene during June a colloquium of the country’s leading labour relations thinkers whose

conclusions have helped shape the engagements.

“

Our company needs

to modernise its
operating methods, in
order to survive and in
order to ensure a fair
shareholder return.

”

INTEGRATED REPORT

2014

The biennial gold industry wage negotiations that get underway later in the ﬁrst half of 2015 will

take place against this background, which will be compounded by inter-union rivalry. Widely

canvassed measures to stem violence that often accompanies some of the strike action will

not have been agreed by the time of the forthcoming bargaining season. We trust, nonetheless,

that the bargaining will be approached in a constructive and peaceful way by all sides.

Much hard work has been done in the gold sector to ensure that the institutionalised system

of centralised collective bargaining, which has served the industry well for more than three

decades, will continue to do so. Collective bargaining is an essential feature of any market

economy, and it invariably includes elements of conﬂict. However, employers and employees

need always to bear in mind that they have a common interest in minimising, or even avoiding,

the losses through resorting to strike action that always accrue to all, including those who are

not directly part of the employment relationship, as the platinum strike demonstrated so starkly.

CONCLUSION

Every one of the issues dealt with in this letter – a fair return to shareholders, employee and

labour relations, health and safety, technological advancement, ASM, transformation, mining

and society – bring home the complex and interrelated set of responsibilities that the board

and management of a modern, and modernising, mining company faces. Our industry offers

the potential to help lift the poorest societies out of poverty. It has done so in many parts of

the world in recent decades. But companies have a responsibility to ensure they do so in a

responsible way, even – perhaps especially – in locations where government regulation or its

implementation is inadequate to ensure company contribution to shared value and respect for

human rights.

Our company needs to modernise its operating methods, in order to survive and in order to

ensure a fair shareholder return. But it needs to do so with awareness of, and appropriate

responsibility for, the interests and rights of those affected by our activities – employees, host

communities and governments. We need always to engage frankly with those stakeholders

with a view to a fair sharing of the value generated by our activities. We need always to be

aware of and honest about the trade-offs that tough decisions will require. The trade-offs, for

example, between pressure for better wages, jobs and technological advancement in labour

intensive environments as at our South African mines is a matter that should be at the forefront

of the minds of the leaders of business and labour. AngloGold Ashanti has always sought to

be at the cutting edge of the thinking about these issues. We seek to continue to play this role.

I welcome to the board Christine Ramon, who was appointed CFO with effect from October

2014. She is a seasoned CFO with an impressive depth of experience and will add an important

dimension to our board and to the executive. I thank Richard Duffy, the company’s previous

CFO, who had a long and distinguished career with the company. We are deeply grateful to

Richard for the outstanding work he did over the 13 months of his reign. I wish him well and all

the best in his future endeavours. I also welcome to the board Albert Garner, Maria Richter and

Dave Hodgson. Dave was chief operating ofﬁcer at our company until his retirement in 2005.

Finally, I want to acknowledge the extraordinary job that our CEO, Srinivasan Venkatakrishnan

– Venkat – and his team continue to do in these most challenging times. I take this opportunity

to also express my gratitude to my fellow board members, who have supported me throughout

the year, and with whom we continue efforts to improve the company’s value proposition for

our shareholders and all stakeholders.

Sipho M Pityana

Chairman

19 March 2015

“

...great strides

have been made
in an industry that
had a reputation
of repression
and unbridled
exploitation

”

INTRODUCTION

P14-25

Corporate proﬁle

Business model

Timeline of corporate activity

Analysis of our external
environment

OUR LEGACY

IS ONE OF

CREATING

VALUE

We strive to create
sustainable long-
term value for our
shareholders and all
other stakeholders.

BUSINESS CONTEXT

INTEGRATED REPORT 2014

AngloGold Ashanti is a global gold mining company with a geographically
diverse, world-class portfolio of operations and projects. Headquartered
in Johannesburg, South Africa, AngloGold Ashanti is the third largest
gold mining company in the world, measured by production.

Our portfolio of 20 operations in 10 countries and a group of greenﬁeld projects in Colombia

is supported by a focused exploration programme. It comprises long-life, relatively low-cost

assets with differing ore body types located in key gold-producing regions. A number of these

assets are strongly leveraged to energy costs and currencies.

We work across the full spectrum of the mining value chain and are concerned with the impact

of our activities on the varied and many communities and environments in which we operate.

Our goal is to create sustainable value for our shareholders, employees, and social partners

through safe and responsible mining practices and capital discipline.

Over the past two years, AngloGold Ashanti has transformed its business for improved

efﬁciency and competitiveness and to deliver a record safety performance alongside production

growth, reduced operating and overhead costs and improved cash ﬂows. We will continue

to aggressively identify and implement further operational efﬁciencies, reduce overhead

structures, improve capital discipline and pursue other initiatives to improve underlying

business performance. The company will also accelerate actions – including reducing debt,

simplifying its portfolio and investigating options to unlock value from the Colombian portfolio

– to strengthen its balance sheet.

Our organisational and management structure is aligned with global best corporate governance

practices. Group support functions include planning and technical, strategy, sustainability,

ﬁnance, human resources, legal and stakeholder relations. The planning and technical function

focuses on the management of opportunities and the maintenance of long-term optionality in the

business through a range of activities which includes brownﬁelds and greenﬁelds exploration,

innovative research and technology development with a focus on mining excellence.

CORPORATE PROFILE

BUSINESS CONTEXT

See map overleaf for
location of operations

to create value is based
on ﬁve strategic pillars
aimed at generating
sustainable free cash
ﬂow improvements
and returns.

For further detail regarding
value creation and our strategic
performance, see Our business
model on pages 18 and 19, and
Our strategy, on page 27

OUR

STRATEGY

“

AngloGold Ashanti

is an independent
gold producer with
a diverse spread
of shareholders
comprising the
world’s largest
financial institutions.”

Annual production

(Moz)

10
11
12
13

4.5

4.3

3.9

4.1

4.4

Annual capital expenditure*

($bn)

10
11
12
13

1.02

1.69

2.32

1.99

1.21

* Includes equity-accounted investments

Annual gold income

($bn)

10
11
12
13

5.33

6.57

6.35

5.50

5.22

Average gold price received

($/oz)

10
11
12
13

561

1,576

1,664

1,401

1,264

CORPORATE PROFILE continued

1 Argentina

Cerro Vanguardia (92.5%)

2 Brazil

Serra Grande

AGA Mineração

3 Colombia

Gramalote (51%)

La Colosa

Quebradona

(1)

(Nuevo Chaquiro) (89.75%)

4 United States

Cripple Creek & Victor (CC&V)

10 South Africa

Vaal River

Great Noligwa

(4)

Kopanang

Moab Khotsong

West Wits

Mponeng

TauTona

Surface Operations

(5)

11 Australia

Sunrise Dam

Tropicana (70%)

5 Guinea

Siguiri (85%)

6 Mali

Morila (40%)

(2)

Sadiola (41%)

Yatela (40%)

(3)

7 Ghana

Iduapriem
Obuasi

8 DRC

Kibali (45%)

(2)

9 Tanzania

Geita

LEGEND

Operations

Projects

SOUTH
AFRICA

AMERICAS

CONTINENTAL

AUSTRALASIA

SOUTH

AFRICA

Percentages indicate the ownership interest held by AngloGold Ashanti, whether directly or indirectly. All operations are 100%-owned unless otherwise indicated.

(1)

Nuevo Chaquiro is the deposit within the Quebradona project.

(2)

Both Morila and Kibali are managed and operated by Randgold Resources Limited.

(3)

Mining has ceased at the Yatela mine which is in closure process.

(4)

The process of integrating Great Noligwa into Moab Khotsong began in 2014 and these operations will be treated as one cash-generating unit
from 1 January 2015.

(5)

For the purposes of this report, Surface Operations includes First Uranium SA, which owns Mine Waste Solutions (MWS). MWS is managed and
operated as a separate cash-generating unit.

LOCATION OF ANGLOGOLD ASHANTI’S

OPERATIONS AND ADVANCED PROJECTS

INTEGRATED REPORT 2014

OPERATIONS

Our operations are grouped regionally as follows:

•

South Africa (Vaal River, West Wits and Surface Operations)

•

Continental Africa (Democratic Republic of the Congo, Ghana, Guinea, Mali and Tanzania)

•

Americas (Argentina, Brazil and the United States)

•

Australasia (Australia)

EXPLORATION

Exploration is aimed at providing an organic growth pipeline thereby creating signiﬁcant value

for the company.

Greenﬁelds and brownﬁelds exploration takes place in both established and new gold-

producing regions through managed and non-managed joint ventures, strategic alliances and

wholly-owned ground holdings. Our world-class discoveries include La Colosa, Gramalote

and Quebradona (Nuevo Chaquiro) in Colombia and Tropicana in Australia.

SHAREHOLDERS

AngloGold Ashanti is an independent gold producer, with a diverse spread of shareholders

comprising the world’s largest ﬁnancial institutions. The Government of Ghana holds a 1.58%

interest in the company.

The respective national governments hold direct interests in our operating subsidiary in Guinea

and joint ventures in the DRC and Mali. In Argentina, the province of Santa Cruz has an interest

in the Cerro Vanguardia operation.

The primary listing of the company’s ordinary shares is on the JSE in South Africa. Its

ordinary shares are also listed on the New York, Australian and Ghana stock exchanges.

More detailed information on our stock exchanges listings is provided in the section on

Shareholder Information on page 138.

At the end of December 2014, AngloGold Ashanti had 404,010,360 ordinary shares in issue

and a market capitalisation of $3.51bn (2013: $4.73bn). Post year-end, at 19 March 2015, the

date of approval of this report by the board, the market capitalisation was $3.80bn.

PRODUCT

While gold is the principal product, depending on local geological characteristics, several

by-products are also produced. These are silver in Argentina, uranium in South Africa and

sulphuric acid in Brazil. In compliance with all applicable legislations, great care is taken to

ensure the safe production, transportation and storage of uranium and sulphuric acid, which

are potentially hazardous.

Once mined, the gold ore is processed into doré (unreﬁned gold bars) on site and then

dispatched to precious metals reﬁneries for reﬁning to a purity of at least 99.5%, in accordance

with the standards of ‘good delivery’ as determined by the London Bullion Market Association

(LBMA). This reﬁned gold is then sold directly to bullion banks.

Geographic distribution of shareholders

as at 31 December 2014

•

United States

• South Africa

•

United Kingdom

•

Rest of Europe

•

Singapore

•

Ghana

•

Australia

•

Rest of world

BUSINESS CONTEXT

BUSINESS MODEL

Creating value and maximising sustainable free cash ﬂow

As a gold mining company, AngloGold Ashanti is in the
business of:

• exploring for and assessing ore bodies to mine

• accessing and mining those ore bodies

which are economically viable

• processing the ore to extract gold

(and other by-products) by targeting
high-quality ounces

• marketing the gold produced

The operational costs incurred in this process include
investing in machinery and equipment, skills enhancement,
technology development and application, and development
of our Mineral Resource and Ore Reserve.

Our current business strategy is aimed at maximising
sustainable free cash ﬂow. In response to a declining gold
price – by 24% over the last two years – and to improve
free cash ﬂow and returns, there has been an intense focus
on proﬁtable production which increased for the second
consecutive year in 2014. Hand-in-hand with this has been
a strong focus on optimising overhead costs and capital
expenditure. To this end, the company embarked on a
restructuring and business rationalisation programme, now
in its second year, to reduce cost and improve efﬁciencies.

For additional information on our strategy, its aims and
targets and how we performed against these, refer to
pages 27-29 of this report.

102.2Mt

Ore treated/milled

The volumes of ore mined and treated at our mining
operations rose by 5% in 2014 from 97.1Mt in 2013.

58,057

People

The average number of people employed by AngloGold
Ashanti declined by 13% in 2014, a consequence of
the company’s rationalisation process, the sale of the
Navachab mine and the transition of Obuasi in Ghana to
limited operating status.

$92m

Corporate and marketing costs

An aggressive cost management initiative successfully
resulted in an overall reduction of 54% year-on-year
in overhead costs. This contributed to a decline in all-in
sustaining costs of 13% to $1,026/oz.

$158m

Expensed exploration and evaluation costs

Exploration and evaluation costs declined by 47% in
2014 as a result of a focus on key targeted jurisdictions,
aimed at supporting a focused, high-quality project and
exploration portfolio.

$1.2bn

Capital expenditure

Optimisation of capital expenditure continued whilst
maintaining the long-term sustainability of the business.
While capital expenditure was 39% lower in 2014,
investment in key projects like the expansions at CC&V
in the United States and Mponeng in South Africa, as
well as the continued development of the underground
mine at Kibali in the DRC, were maintained. Capital
expenditure also continued on ore reserve development,
the production ramp-up at Tropicana and Kibali, and on
the reef-boring initiative in South Africa to enable safe
extraction of ultra-deep ore bodies and pillars that would
otherwise not be viable to mine.

* Includes equity-accounted investments

AngloGold Ashanti’s core strategic focus is to
generate sustainable free cash ﬂow by focusing
on ﬁve key business objectives, namely: people,
safety and sustainability; ensuring ﬁnancial
ﬂexibility; actively managing all expenditures;
improving the quality of our portfolio; and
maintaining long-term optionality.

OUR

PROCESS

INPUTS

INTEGRATED REPORT 2014

To achieve our strategy to improve sustainable
free cash flow generation, we have focused on the
production of high-quality ounces from the ore mined
and treated. In 2014, gold production increased by
8%. Around 97% of our revenue is generated by

gold sales.

In 2014, we produced an attributable:

4.4Moz

(2013: 4.1Moz)

Gold

3.5Moz

(2013: 3.3Moz)

Silver

1.3Mlb

(2013: 1.4Mlb)

Uranium

192t

(2013: 191t)

Sulphuric acid

Productivity levels are measured to monitor our output
efﬁciency. All elements of the business maintained a
sharp focus on cost control to augment productivity gains.

9.64oz/TEC

(2013: 8.14oz/TEC)

Productivity

In the course of conducting its business, AngloGold
Ashanti’s activities have an impact on the people it
employs and whose safety is paramount, on the land
disturbed by mining, and on the consumption of scarce
resources such as water and energy, which in turn has
an impact on the environment.

(2013: 8)

Number of fatalities

7.36

(2013: 7.48)

Safety – all injury frequency rate per million
hours worked

* 7.15: Adjusted for earthquake impact

$851m

(2013: $728m)

Discounted cost of future rehabilitation

65.0ML

(2013: 64.8ML)

Water used

31.8PJ

(2013: 32.7PJ)

Energy used

4.6Mt CO

(2013: 4.5Mt CO

GHG emissions

$5,218m

(2013: $5,497m)

Gold income

The increase in production helped somewhat to offset the
decline in price received, thereby reducing the impact on
gold income.

$1,665m

(2013: $1,667m)

Adjusted EBITDA

The intense focus on costs and productivity, among
other factors, helped to maintain adjusted EBITDA
despite the lower gold price.

$3,133m

(2013: $3,105m)

Debt

Net debt to adjusted EBITDA at current levels is about 1.88
times, which is well within covenant limits of 3.5 times
(2013: 1.86 times) and little changed on the previous year,
despite the lower gold price.

THIS ENABLED THE FOLLOWING:

$251m

(2013: $247m)

Interest paid

$1,588m

(2013: $1,593m)

Wages and salaries paid

$778m

(2013: $840m)

Payments to government

$14.8m

(2013: $22.5m)

Community investment

OUTPUTS

IMPACTS

OUTCOMES

BUSINESS CONTEXT

Average monthly gold price

($/oz)

2013: average gold price

$1,401

Jan

Feb

Mar

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Apr

1,000

1,100

1,200

1,300

1,400

1,500

1,600

1,700

1,800

APRIL:

JULY:

$1,224

DECEMBER:

$1,285

Source: Bloomberg

$1,485

$1,671

JANUARY:

MAY: CORPORATE ROLES

STREAMLINED

Changes to executive part of initiative to
streamline corporate and regional
structures. A simpler strategy based on
five key focus areas developed to
improve sustainable free cash flow
generation

MAY: NEW CEO

Srinivasan Venkatakrishnan
appointed CEO

JUNE: IMPAIRMENT

Significant impairment of $2.9bn (pre-tax),
owing to adverse changes in macroeconomic
conditions and sharp fall in gold price

JUNE: CFO APPOINTED

Richard Duffy appointed CFO

JUNE: FORMAL COST

CUTTING PROGRAMME

Project 500, a formal cost-cutting
programme, implemented to reduce
costs by $500m in an 18-month period.
The resulting review of expenditure led
to significant cuts in corporate costs,
expensed exploration and capital
expenditure

AUG: BANKING COVENANT

RELAXED

Bankers successfully petitioned to
temporarily relax banking covenant
from 3 times net debt to adjusted
EBITDA to 4.5 times for two testing
periods

AUG: FOCUS ON

FINANCIAL FLEXIBILITY

To ensure flexibility of the balance sheet,
a seven-year bond with an aggregate
value of $1.25bn and bearing interest of
8.5% was issued, enabling us to repay in
advance the $732.5m convertible bond
due for redemption in May 2014

JULY:

COST

OPTIMISATION

Organisational and cost optimisation
review leads to the first round of
voluntary retrenchments

SEPT: WAGE

NEGOTIATIONS
CONCLUDED

Biennual wage negotiations concluded
after a three-day strike at Vaal River
operations

SEPT: YATELA CLOSURE

Closure of the Yatela mine in Mali
announced

SEPT: FIRST GOLD

POURED

Kibali and Tropicana pour first gold

NOV: MOLOTO AUDIT

The Moloto Audit of compliance with
South African Mining Charter targets
completed. All targets met by end 2014

DEC: AMERICAS RECORD

Region produces 1Moz for first time in a
calender year

TIMELINE OF CORPORATE ACTIVITY

2013 – 2014

INTEGRATED REPORT 2014

2014: average gold price

$1,264

Average monthly gold price

($/oz)

Jan

Feb

Mar

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Apr

1,000

1,100

1,200

1,300

1,400

1,500

$1,200

DECEMBER:

$1,336

MARCH:

$1,311

JULY:

FEB: NEW CHAIRMAN

Sipho Pityana appointed chairman on
resignation of Tito Mboweni

JUNE: NAVACHAB SOLD

Sale of the Navachab mine in Namibia
concluded – all conditions precedent met
and monies paid

MAY: OBUASI SPECIAL

PROJECT LAUNCHED

Announced that Obuasi would be
managed as a special project to address
operational challenges

AUG: EARTHQUAKE

In South Africa, earthquake halts
production at Moab Khotsong and Great
Noligwa for several days; 3,300 people
brought safely to surface

AUG: RAND REFINERY

LOAN FUNDING

A $44m shareholder funding loan facility
extended to Rand Refinery as a
precautionary measure following
accounting records and inventory
discrepancies encountered after the
implementation of a new software
system. Funding drawn down in
December 2014

AUG: THIS IS GOLD

Launch of This is Gold, a collaborative
initiative aimed at providing insight into
the South African gold sector

SEPT: PROPOSED

CORPORATE
RESTRUCTURING

A corporate restructuring and capital
raising announced. This was withdrawn
following extensive engagement with
shareholders

SEPT: 224 FATALITY

FREE DAYS

The longest fatality-free period – 224
days – in company’s history and more
than a year without a fall-of-ground
fatality, despite the earthquake

SEPT: SELF-HELP STEPS TO

DELEVERAGE

Prioritisation of measures to reduce debt
over the medium term including improved
efficiencies and potential joint ventures or
asset sales for full value

SEPT: BANKING

COVENANTS AND NEW
FACILITIES ARRANGED

Revolving credit facility maturity profiles
successfully extended. Banking
covenants eased from 3 times net debt:
adjusted EBITDA to 3.5 times, with
one-time waiver to 4.5 times

NOV: NUEVO CHAQUIRO

Maiden Mineral Resource released for
Nuevo Chaquiro, a copper-gold
porphyry-style deposit located in the
Quebradona project area in Colombia

OCT: CFO APPOINTED

Christine Ramon appointed CFO,
replacing Richard Duffy

NOV: OCCUPATIONAL

LUNG DISEASE

A collaborative initiative launched to
seek a comprehensive solution to issues
relating to compensation and medical
care for occupational lung disease in
South African gold mining industry

DEC: SAFETY

ACHIEVEMENT

For the first time in company history, the
Continental Africa region completes a full
year with no fatal accidents

DEC: LIMITED

OPERATIONS AT OBUASI

Mine development suspended and
underground production halted.
Retrenchments completed with
agreement from unions

2014

BUSINESS CONTEXT

SEE MAP

We identify, prioritise, address and review external factors with a bearing
on our ability to deliver our strategic objectives.

This enables us to highlight emerging issues that inﬂuence our short- and long-term economic

viability and the sustainability of our business. Here we analyse those issues in our external

environment – the gold market, stakeholder expectations, competition for resources and

infrastructure, and health and safety – that are expected to continue to inﬂuence AngloGold

Ashanti’s performance.

THE GOLD MARKET

The Federal Reserve’s monetary policy and the end of quantitative easing continued

to depress the gold price in 2014, as the prospect of higher interest rates reduced the

need for safe-haven investments. Demand for physical bars and coins had declined in

2013, in part as investors digested their heavy buying in 2012 and early 2013. Investors

began a sell off of their gold holdings in the second half of 2013 and this continued into

2014. In particular, liquidations from exchange traded funds (ETFs) resulted in ETF gold

holdings declining by almost 160t, signiﬁcantly less than the 903t of liquidation in 2013.

ETFs have now lost a third of their holdings since their peak at the end of 2012, when

they held 89Moz (2,778t). Slowing growth in China, deﬂation in Japan and prospects

for monetary stimulus in Europe helped to boost the attractiveness of the US dollar,

which in turn weighed on gold.

In contrast, central banks remained steady net buyers of gold, a trend that has lasted

several years, with net purchases of 14Moz in 2014 (2013: 13Moz). Russia’s central bank

started to accumulate domestically produced metal as Ukraine-related sanctions hindered

normal gold exports.

Jewellery demand was largely sustained during 2014 at 7Moz (2,153t) level. Indian demand

in the latter half of the year took up most of the slack occasioned by slower Chinese

demand. This followed the lifting of import restrictions by the Indian government. The

Chinese jewellery market has been consolidating after the exceptional growth of 2013 and

as warehouse stocks of bullion continued to be drawn down. Apart from the United States

and UK, where economies have been recovering and lifting jewellery demand, demand in

much of the rest of the world has tended to be weaker.

ANALYSIS OF OUR EXTERNAL ENVIRONMENT

Our gold is sold in:

South Africa

United States

Australia

Asia

Europe

“

Demand for

physical bars and
coins declined in
2014, in part as
investors digested
their heavy buying
in 2012 and early
2013.”

2014

Jan 2013

Dec 2014

Average monthly gold price ($/oz)

(January 2013 to December 2014)

1,000

1,250

1,500

1,750

INTEGRATED REPORT 2014

SEE MAP

EXTERNAL

ENVIRONMENT

CAPITAL MARKETS

Access to capital markets is a fundamental requirement for any company. Investors (mostly investment funds but also individuals)

provide the lifeblood of capital to listed enterprises around the world, either by buying securities in the secondary markets,

or by participating in primary placements of equity or debt as companies look to raise money for speciﬁc initiatives. Equity

market conditions are currently challenging for gold producers, particularly for those in emerging markets as funds in these

markets have seen withdrawal of cash by their own investors. The sharp decline in gold prices and the resultant contraction in

producers’ margins have hurt gold funds’ performance resulting in declining

valuations and investor redemptions. Against the backdrop of low

equity valuations for gold producers and the amount required

for the transaction proposed in September, shareholders

declined the proposal to inject $2bn into the company

to facilitate the debt reduction required to split the

company. This prompted the decision to withdraw

the proposal and remain a single entity, and to

deleverage the balance sheet, generating cash

from internal sources, including fundamental

cost savings, joint ventures and/or asset

sales, for full value.

REGULATORY UNCERTAINTY

The public burden placed on the mining

industry has risen progressively over the

past decade.

In South Africa:

•

The enactment of the amended

Mineral and Petroleum Resources

Development Act (MPRDA) has been

delayed, and it has been returned to

Parliament for review. The gold industry,

through the Chamber of Mines, has

been in discussions with government.

•

The Mining Charter, which gives effect to

the MPRDA and is aimed at transforming

the mining industry to redress historical

imbalances, reached the end of the

second ﬁve-year commitment period at

the end of 2014. All of our operations

were audited and were commended

for the work done towards achieving

targets by the end of 2014.

In Argentina, regulatory concerns

around import restrictions, together

with inﬂationary pressures, continue to

have an operational impact.

AngloGold Ashanti’s listings:

JSE

Ghana

NYSE

Australia

ENERGY CONSTRAINTS

As the gold mining sector is a signiﬁcant user of

energy, a stable and affordable power supply is critical.

•

A directive to curtail energy usage in Ghana is not expected to affect operations

as Obuasi’s transition to limited operating status will greatly reduce usage and

Iduapriem continues to optimise energy consumption.

•

South Africa’s national power utility’s generating capacity is severely constrained,

and is expected to remain under pressure for several more years. Planned

power outages are scheduled to continue until at least April 2015. Operations

engage directly with Eskom to manage outages and to participate in demand-

side management to reduce peak ﬂow. The company is a member of the

Energy Intensive Users Group and collaborates with the Chamber of Mines

and other stakeholders to support the national electricity network and ensure

minimal disruptions. Back-up generators help to ensure employee safety during

outages and prevent infrastructural damage. We have implemented measures

underground, on surface and in residences to limit energy usage.

Constraints in:

South Africa

Ghana

BUSINESS CONTEXT

SEE MAP

SOCIAL LICENCE TO OPERATE

The sustainability of our business is inﬂuenced by public acceptance of our activities – the

company must earn and maintain its social licence to operate through constructive and

transparent communication and engagement.

AngloGold Ashanti strives to contribute positively to the communities and societies in

which we operate, thus contributing towards their sustainable future. Our aim during the

life of operations is to put in place the foundations of this future, by engaging with local

communities, local and national governments and other stakeholders and by being in

partnership with them. This we do by:

•

Investing in communities

•

Promoting local procurement

•

Focusing on local employment and skills development

In Ghana in particular, extensive engagements involved government, employees, unions,

regulators, communities and other stakeholders to address the operational and socio-

economic challenges at Obuasi and the mine’s transition to limited operating status while a

new development plan is ﬁnalised. A multi-stakeholder working group was established to

engage on the measures needed to return Obuasi to long-term viability. Signiﬁcant progress

had been made by year-end on determining the interventions needed to transform Obuasi

into a modern, productive and cost-effective operation and how those interventions should

be implemented. The Amendment to Programme of Mining Operations, which details

technical, environmental, ﬁnancial and social details around the transition, was submitted in

July 2014 and was approved by the Ghanaian Government in November. This programme

will enable the company to complete the feasibility study, carry out any necessary

engagements with potential partners and conclude a way forward for the Obuasi mine.

ARTISANAL AND SMALL-SCALE MINING

Artisanal and small-scale mining (ASM) is a feature of gold mining regions around the world.

While legal ASM is provided for in the legislative framework of most mining countries and

has the potential to provide livelihoods, we distinguish between legal and illegal ASM. The

presence of artisanal and small-scale miners can lead to illegal and criminal third-party

activity on or around our operations and often presents increased and complex challenges

to safety and security.

Much work has been done in and around our operations to ensure we work with the

communities to deal with illegal ASM while working on forging partnerships where possible

with legal ASM, which are a legitimate entrepreneurial activity. To protect our assets, our

employees, the environment and local communities, we work with authorities to act against

illegal ASM activity on our sites. We seek to address illegal ASM activity through strategic

and security interventions and by taking action that is appropriate in terms of the law

and in accordance with international principles of human rights, including the Voluntary

Principles on Security and Human Rights (VPSHR) and their rules of engagement, and the

UN Guiding Principles on Business and Human Rights. We have undertaken a number of

key initiatives including the development of a guidance framework on how to manage ASM

issues, from the implementation of capital projects to the identiﬁcation of generic regional

ASM risks and their control measures.

ANALYSIS OF OUR EXTERNAL ENVIRONMENT continued

“

The company

must earn and
maintain its social
licence to operate.”

“

Where possible,

our company
supports the
formalisation of
the ASM sector.”

ASM is most
prevalent in:

Colombia

Brazil

Ghana

Guinea

DRC

Tanzania

Extensive community
engagement:

Colombia

Ghana

South Africa

Tanzania

INTEGRATED REPORT 2014

SEE MAP

EXTERNAL

ENVIRONMENT

LABOUR RELATIONS

During the year, the South African platinum sector endured an

unprecedented ﬁve-month strike related to wage negotiations.

The second year of a two-year wage agreement in the gold sector

began in June 2014 without industrial action, although the 2013

agreement remains subject to an appeal to the Labour Court by

the Association of Mineworkers and Construction Union (AMCU). That

agreement was signed by the gold producers and three unions, NUM,

UASA and Solidarity, representing 72% of employees in the sector at the

time, and was extended to all employees irrespective of their union afﬁliation.

The 2013 agreement included a commitment to address employee indebtedness and in

particular as related to emolument attachment orders (EAOs) and other aspects of employees’ personal

ﬁnancial management. Given their stable employment, mineworkers are vulnerable to exploitation by

unscrupulous lenders. Excessive levels of indebtedness affect employees’ ability to ﬂourish and fund their future. Much work was

done in 2014 to develop and implement an initiative, Masidibanise Izandla, (‘let’s put our hands together’) to provide ﬁnancial

guidance, advice and support to employees. The next round of wage negotiations in South Africa’s gold mining sector is expected

to begin in early 2015. The companies will again engage employees, through their organised labour representatives, in centralised

collective bargaining to ﬁnd a mutually acceptable outcome that provides a salary adjustment that is both affordable for the

gold producers and adequate to their staff. It will be imperative for unions and companies to agree a link between higher pay

and improved productivity levels, given the threat that diminishing productivity poses to the long-term viability of this industry in

South Africa. AngloGold Ashanti will, as always, focus on ensuring peace and stability during this

engagement with its employees.

Employee and union engagement at our other operations had positive outcomes. For instance, at

Obuasi in Ghana, where the retrenchment of the entire workforce, with the full support of organised

labour, was the principle labour issue, and in Argentina, where the increasingly difﬁcult economic

environment had the potential to affect relations with employees.

In:

Ghana

South Africa

Argentina

In:

Ghana

Guinea

South Africa

HEALTH AND SAFETY

Safety is not only our ﬁrst value, it is our priority. Efforts to improve safety performance in 2014 were directed at deepening our

understanding of how risks develop at our operations and at identifying the pathways – or sequences of events – which result

in safety incidents. This included a focus on major hazard management – identifying and monitoring critical controls, instituting

measures to reduce and control deviations, and continuing to build organisational safety capability and capacity.

In the course of conducting our business, employees may also be exposed to various health hazards. We actively manage

these risks to ensure that our workplaces are free of occupational illness. To that end in South Africa, AngloGold Ashanti,

Anglo American South Africa, Gold Fields, Harmony and Sibanye Gold announced in November 2014 that they had

formed an industry working group to address issues relating to compensation and medical care for occupational lung

disease in the gold mining industry in South Africa. Engagement has begun with all stakeholders, including government,

organised labour, other mining companies and legal representatives of claimants who have

ﬁled legal suits against the companies. Essentially, the companies are seeking a

comprehensive solution regarding the legacy compensation issues and future

legal frameworks, which, while being fair to employees, also ensures the

future sustainability of the industry.

Health-related community challenges include HIV/Aids in South Africa

and malaria in much of the Continental Africa region. More recently, in

2014, the outbreak of the Ebola virus disease in Guinea resulted in

the exploration programme in the vicinity of Siguiri being suspended.

BUSINESS CONTEXT

P26-41

Our strategy

Performance against
strategic objectives

Managing and
mitigating risks

Stakeholder engagement
and materiality

TOWARDS

VALUE

CREATION

THROUGH

CREDIBLE AND

SUSTAINABLE

BUSINESS

In this section, we explain
our strategy and our
performance against our
strategic objectives, and
the impact of our risks
and material issues.

STRATEGY

INTEGRATED REPORT 2014

STRATEGY

AngloGold Ashanti’s core strategic focus is to generate sustainable free cash ﬂow by focusing on ﬁve
key business objectives, namely: people, safety and sustainability; ensuring ﬁnancial ﬂexibility; actively
managing all expenditures; improving the quality of our portfolio; and maintaining long-term optionality.

ANGLOGOLD ASHANTI’S INVESTMENT CASE:

High-quality portfolio of long-life, pure gold assets with

strong leverage to energy and currencies

Balance sheet ﬂexibility – appropriate liquidity, covenant

and maturities

Prioritising margins over production growth – focus on

cost and capital discipline

Decisive, proactive balance sheet management;

prioritising self-help measures to deleverage

Decisive strategic response to a lower gold price –

business plans adjusted and exploration curtailed

Well-developed engagement model ensures strong

stakeholder relationships and licence to operate

OUR STRATEGY

10
11
12
13

Expensed exploration and evaluation costs*

($m)

205

313

461

296

158

10
11
12
13

Net debt to adjusted EBITDA

(times)

0.68

0.19

0.81

1.86

1.88

10
11
12
13

Net debt

($m)

1,288

610

2,061

3,105

3,133

10
11
12
13

Production

(Moz)

4.5

4.3

3.9

4.1

4.4

Average gold price received

($/oz)

10
11
12
13

561

1,576

1,664

1,401

1,264

* Includes equity-accounted investments

STRONG

momentum maintained

in the drive to achieve our ﬁve strategic objectives

Improve portfolio quality

The gold price continued to decline in 2014. Focus on improving the

quality of the portfolio was sustained, while maintaining cash flows and

improving returns remained priorities. Production increased for the

second consecutive year, due in large part to Tropicana and Kibali each

having had their first full year of production. In line with our aim to

simplify our portfolio and focus on quality ounces, the closure of Yatela

was progressed, Navachab was sold, the CC&V expansion project was

advanced, and operations at Obuasi in Ghana were significantly

downscaled while a feasibility study is conducted on its future viability.

A maiden Mineral Resource for the Nuevo Chaquiro deposit in

Colombia was announced.

Ensure financial flexibility

Our prudent approach to managing

the balance sheet and reducing

exposure to financial risk yielded

positive results. Self-help measures

were implemented to enable

deleveraging and to increase covenant

headroom. The debt maturity profile

was extended, maintaining good

liquidity from multiple sources.

Maintain long-term
optionality

Again, the tight rein on capital

expenditure continued. Following exits

from non-core jurisdictions, exploration

focused on more prospective areas in

Australia, Colombia and Guinea. In

addition to the savings achieved in 2013,

additional savings were realised in 2014.

In 2014, AngloGold Ashanti
reported the second year of
improved operational
performance, together with a
record safety performance.
We will maintain the emphasis
on containing costs and the
culling of marginal production
if necessary.

PERFORMANCE AGAINST STRATEGIC OBJECTIVES

INTEGRATED REPORT 2014

10
11
12
13

Number of fatalities

15
15

10
11
12
13

Productivity

(oz/TEC)

9.15

9.32

8.07
8.14

9.64

10
11
12
13

All injury frequency rate

(per million hours worked)

9.76

11.50

7.83

7.48

7.36*

* 7.15 adjusted for earthquake impact

10
11
12
13

Community investment

($000)

16,080

20,612

24,907

22,536

14,799

10
11
12
13

Number of employees

62,046
61,242

65,822

66,434

58,057

10
11
12
13

Total cash costs

($/oz)

638

703

829

830

787

10
11
12
13

Cash flow from operating activities

($m)

(942)

2,813

1,969

1,246

1,220

10
11
12
13

Free cash flow

($m)

(1,979)

960

(672)

(1,058)

(112)

10
11
12
13

Corporate and overhead costs

($/oz)

10
11
12
13

Capital expenditure*

($bn)

1.02

1.69

2.32

1.99

1.21

* Includes equity-accounted investments

DELIVERING

on our strategy

resulted in:

Optimise overhead, costs and capital expenditure

Costs improved significantly across every metric during 2014, the result of continued focus on all expenditures and

disciplined allocation of capital. All-in sustaining costs, which capture direct operating costs and sustaining capital, as well

as corporate overheads and exploration, fell 13% to $1,026/oz in 2014 compared with $1,174/oz in 2013. All-in costs,

which also include capital expenditure on projects, dropped 22% over the same period, to $1,148/oz from $1,466/oz the

previous year.

Focus on people, safety and sustainability

People are the business, whether they be employees, host
communities or other stakeholders affected by our activities. Our
aim to drive sustainable cash flow improvements through our
operations depends on our ability to operate safely, to operate with
the cooperation and consent of our host communities and
governments, and to remain careful stewards of the environment
notwithstanding the invasive nature of mining. With these
fundamental points guiding us at all times, we recorded the best
ever safety performance in AngloGold Ashanti’s history while also
posting a record environmental performance, measured by the
number of reportable incidents logged during the year. Furthermore,
achieving our business objectives enables us to contribute to local
socio-economic development, albeit at a lower level in 2014,
reflecting deterioration in market conditions. While we’re immensely
proud of the progress we have made in core sustainability areas, we
remain mindful of the fact that there is no room for complacency as
we seek to achieve our ultimate goal of zero harm in the workplace
and minimising our impact on the environment.

STRATEGY

MANAGING AND MITIGATING RISKS

Strategically managing threats and capitalising on opportunities

“

At AngloGold

Ashanti, we recognise that risk is a factor in all business and operational activities and, furthermore, that threat and opportunity are both facets of risk.”

Severity

Likelihood

Top group risks heat map

Strategic

Operational

External

Material risks identified

Obuasi

Growth

Reliability

Technology

Competetiveness

Reserves

Financial

Covenant and debt

Labour

Health

Power

Inflation

Country

Commodities and currencies

Skills

Regulatory

Operational and safety

Ebola

Social licence to operate

Risk and its identiﬁcation, assessment, management and mitigation are fundamental to our business. All aspects of the risk management process underpin the execution of our strategy and planning for the future.

Hand-in-hand with this risk assessment process is the identifying of opportunities so as to

harness and capitalise on these for the beneﬁt of all stakeholders. Once they have been

evaluated, signiﬁcant risks and opportunities are prioritised and managed within the group’s

risk framework.

OUR PRINCIPAL RISKS

AngloGold Ashanti’s major risks are classiﬁed in terms of three aspects as follows:

•

Strategic risks are those taken voluntarily after consideration of risk-versus-reward to

achieve AngloGold Ashanti’s strategic objectives.

•

Operational risks are preventable risks resulting from employees’ undesirable and unauthorised

actions as well as from breakdowns in routine operational processes and human error.

•

External risks are those emanating from uncertain and uncontrollable events.

Risks assessments are undertaken annually. The risks discussed here were identiﬁed, reviewed

and assessed by the Executive Committee.

Full details and the status of each of the risks are monitored on a continuing basis. The

information provided for each risk includes details of the: risk context and background; risk

performance indicators; mitigation plans; expected outcome and residual risks; expected

dates for completion of mitigation measures; possible root causes and consequences; and

mitigatory and preventative controls. This information is updated and provided twice a year to

the Audit and Risk Committee.

TOP GROUP RISKS

The top group risks are depicted in the graphic below which maps the severity and

likelihood of the top risks. The risks depicted are those that are considered to be within

the ‘likelihood’ range of ‘almost impossible’ to ‘almost certain’ and ‘consequence’ of

‘moderate’ to ‘extreme’ should they materialise.

INTEGRATED REPORT 2014

Our risks and their time horizons

We have categorised our risks in terms of their expected time horizons. Those with an imminent

(short-term) horizon are more likely to occur within around 12 months. Those categorised as

medium-term risks are considered to have a one- to three-year time horizon.

The cumulative impact of a number of these and other risks, should they materialise

simultaneously or in succession, as well as the possible magnitude and velocity of the risks, is

of major concern. Such an occurrence would be likely to cause signiﬁcant headwinds that could

adversely impact the implementation of AngloGold Ashanti’s strategy, despite the successes

achieved to date, and could potentially threaten AngloGold Ashanti’s liquidity and viability.

The table below lists the top risks – both imminent and medium-term – to the group, ranked

from highest to lowest in terms both of the potential severity of the consequence of each risk

and the likelihood of that risk arising.

‘Top’ risks as at year-end 2014

Risk ranking

2014

Type

Potential risk

Strategic

Protracted ﬁnancial pressure on the business from the depressed gold price coupled with

high debt and declining grades and consequential rise in unit costs as assets mature **

External

Adverse gold and commodity prices, and currency movements *

Strategic

Inability to develop projects to bring the Ore Reserve to account **

External

Covenant compliance and inability to reduce debt *

External

Protracted labour-related stoppages in South Africa *

Operational

Operational and safety underperformance negatively impacting improved track record **

External

Legacy occupational and community health compensation claims/litigation **

Strategic

Inability to remain competitive impacting the long-term investment case *

External

Elevated country risk proﬁle in core production areas **

Operational

Input cost inﬂation exceeding cost containment and productivity strategies **

External

Security of power supply and rising cost of power in South Africa *

Strategic

Failure to successfully operationalise (ATIC) technology step-change **

Operational

Asset integrity failures and compromised reliability at South African operations *

Strategic

Failure to demonstrate and/ or realise business case for Obuasi redevelopment *

External

Unfavourable regulatory environment changes *

Operational

Critical skills and talent retention *

External

Failure to acquire or loss of ‘social licence to operate’ *

Strategic

Lack of strategic growth projects to renew portfolio **

External

Operational disruption in West Africa resulting from Ebola virus disease **

* Denotes a risk with an imminent time horizon

** Denotes a risk with a medium-term time horizon

STRATEGY

MANAGING AND MITIGATING RISKS continued

Strategically managing threats and capitalising on opportunities

MITIGATION OF RISKS

Action plans to mitigate the risks identiﬁed have been put in place. The mitigation measures associated with the top ﬁve imminent risks

are detailed in the table below.

Mitigation of top ﬁve imminent risks

Risk

(ranking)

Potential consequences

Mitigation action plan

Expected outcome and

residual risk

Progress/current status

Adverse gold and

commodity prices, and

currency movements

(2)

•

Inadequate free cash

ﬂow/liquidity/credit

rating impact

•

Inability to develop

strategic growth and

development projects

to bring reserves to

account

•

Lower market

capitalisation

•

Credible track record

of cost control and

solid delivery

•

Ongoing cost control

measures

•

Business planning and

portfolio optimisation

•

Asset sales

•

Access capital markets

•

Potential impact on

valuation

•

Altered asset portfolio

•

Premature closure

or moth-balling

of operations and

reduced production

proﬁle

•

Elevated debt

•

Inability to pay

dividends

•

In progress

Covenant compliance

and inability to reduce

debt

(4)

•

Balance sheet stress

•

Raised cost of capital

•

Equity overhang

•

Inability to develop

strategic growth and

development projects

•

Impeded portfolio

options

•

Breach of debt

covenants

•

Proactive and

timely approach to

reﬁnancing of facilities

•

Diversiﬁed sources/

facility tenor

•

Self-help measures to

generate cash from

internal sources to

reduce debt. Includes

optimising mine plans

for cash generation,

focus on high-margin

production, pursuing

efﬁciencies across

the portfolio and

considering potential

asset sales or joint

ventures for full value

•

Reduced costs

and restructured

organisation

•

Optimised portfolio

•

Potential impact on

valuation

•

Reduced production

proﬁle

•

Severe capital

constraints

•

Inability to pay

dividends

•

Debt reﬁnancing

(complete)

•

Additional mitigation

measures commenced

and in progress as the

gold price declined

sharply towards the

end of 2014

Protracted labour-

related stoppages

in South Africa

c,d

(5)

•

Production stoppages

and losses leading to

liquidity crisis

•

Intimidation of

employees and

violence and damaged

assets

•

Compromised safety

and operational

conditions

•

Lower market

capitalisation

•

Organisational

restructuring

•

Legal strategies

•

Three-tier union and

employee consultation

process/ media

•

Recognition

agreements

•

Wage increases

extended to all

employees

•

Union/government

facilitation

•

SASRIA insurance

•

Restructuring

•

Two-year wage

agreement with higher

input costs/wages

•

Inter-union tensions

exacerbated by

competition for

majority representation

at all South African

gold mines

•

Restructuring

occasioned by cost and

gold price pressures

•

Ongoing litigation

•

Current labour law

review and Mining

Charter imperatives

•

AMCU’s Labour Court

Appeal (Q4 2015)

•

Labour Court review

of dismissed Moab

Khotsong employees

•

Wage negotiations

(mid-2015)

>IR: Refer to discussion on

the gold market on page 22

>AFS: Refer to group note

27 on group borrowings
(page 105)

>IR: Engagement with

organised labour on pages
39-40

>SDR: Refer to the

discussion on labour relations
at www.aga-reports.com/
14/sdr/material-issues/
stakeholder-engagement/
organised-labour

INTEGRATED REPORT 2014

The mitigation measures associated with the top ﬁve medium-term risks are as follows:

Mitigation of top ﬁve medium-term risks

Risk

(ranking)

Potential consequences

Mitigation action plan

Expected outcome and

residual risk

Progress/current status

Protracted ﬁnancial

pressure on business

from depressed gold

price coupled with high

debt and rapidly rising

costs of mature asset

portfolio

(1)

•

Inadequate free cash

ﬂow/ liquidity

•

Inability to develop

strategic growth and

development

•

Low market

capitalisation

•

Credit rating impact

•

Premature closure

•

Cost reduction,

restructuring and

business plan review

•

Portfolio optimisation

•

Reﬁnancing banking

facilities with looser

covenants

•

Credible cost control/

delivery

•

Access capital markets

•

Joint ventures and

asset sales

•

Potential impact on

valuation

•

Altered asset portfolio

•

Reduced production

proﬁle

•

Elevated debt levels

•

Inability to pay

dividends

•

Continued focus on

optimising balance

sheet structure to

maintain ﬁnancial

ﬂexibility

•

Active cost

management

continues to counter

weaker gold price

Mitigation of top ﬁve imminent risks continued

Risk

(ranking)

Potential consequences

Mitigation action plan

Expected outcome and

residual risk

Progress/current status

Inability to remain

competitive impacting

long-term investment

case

(8)

•

Market capitalisation

reduction

•

Inability to reduce debt

•

Inadequate cash ﬂow

and liquidity

•

Premature closure

or mothballing of

operations

•

Lack of strategic

growth projects

•

Credible track record

of cost control and

solid delivery

•

Ongoing cost control

measures

•

Business planning and

portfolio optimisation

•

Asset sales

•

Access capital markets

•

Improved market

capitalisation and

asset portfolio

•

Premature closure or

mothballing/reduced

production proﬁle

•

Reduced debt levels

•

Inability to pay

dividends

•

In progress

Security of power

supply and rising cost

of power in South

Africa

f, g

(11)

•

Production losses

•

Inadequate free cash

ﬂow/liquidity/credit

rating impact

•

Lower market

capitalisation

•

Compromised safety

•

Increased operational

costs

•

Flooding of workings

•

Power saving and

reduction initiatives

•

Proactive and

continuous

engagement with

Eskom

•

Emergency response

plans

Over the next three to

ﬁve years:

•

Frequent load-

shedding disrupting

production

•

Potential for complete

loss of power for ‘days

at a time’ as Eskom

protects the national

grid

•

Ongoing

•

No ability to cater for

complete, prolonged

power loss from the

grid

>IR: Refer to section entitled Planning for future from page 111

>SDR: Energy usage, efﬁciency and security at www.aga-reports.com/14/sdr/material-issues/environmental-stewardship/energy

>IR: Discussion on energy constraints on page 23

STRATEGY

MANAGING AND MITIGATING RISKS continued

Strategically managing threats and capitalising on opportunities

Mitigation of top ﬁve medium-term risks continued

Risk

(ranking)

Potential consequences

Mitigation action plan

Expected outcome and

residual risk

Progress/current status

Inability to develop

projects to bring the Ore

Reserve to account

(3)

•

Ore Reserve write-

down and market

capitalisation decline

•

Production proﬁle

and business plan

reduction

•

Loss of tenements

•

Premature mine

closure or mothballing

•

Identiﬁcation of joint

venture partnerships

and alternative funding

•

Focused exploration

funding for critical

operations

•

Business planning and

portfolio optimisation

•

South Africa reef-

boring programme

•

Expansion and/or life

extension projects at

CC&V and Mponeng

•

Obuasi feasibility study

•

Ore Reserve decreases

and impairments

•

Loss of growth

opportunity and

returns via potentially

having to partner at

less than optimal value

•

In progress and

ongoing

•

Completion dates

uncertain

Operational and safety

underperformance

negatively impacting

improved track

record

a, b

(6)

•

Reduced cash ﬂow

and decreased liquidity

•

Decline in investor

conﬁdence

•

Credit ratings impact

•

Restricted ability to

invest in strategic

growth and

development projects

•

Business planning and

portfolio optimisation

•

Organisational

restructuring

•

Project 500

•

Robust safety systems

and leadership,

training, KPIs, and

bow-tie controls

•

Improved ability to

deliver on business

plans and market

guidance

•

Improved asset

portfolio

•

Declining Ore Reserve

•

Initial phase of Project

500 complete and

targets achieved

•

Ongoing

•

Project 500 team to

continue searching for

additional savings and

efﬁciency opportunities

Legacy occupational

and community health

compensation claims/

litigation

c, d

(7)

•

Financial impact

•

Market capitalisation

reduction

•

Reputational damage

•

Impacted employee

well-being

•

Defend claims

•

Industry-wide

project to assist with

compensation and

relief

•

Gold Working Group

•

Court ruling in favour

of AngloGold Ashanti

•

Comprehensive

solution involving all

stakeholders

•

Identiﬁcation of

suitable alternatives

•

Indeterminate

•

Pursuing legal defence

of claims

Elevated country

risk proﬁle in core

production areas

e, f

(9)

•

Adverse impact on

business plan delivery

•

Reduced market

capitalisation

•

Increased costs and

cash ﬂow impact

•

Portfolio review

•

Focused exploration

•

Host government

and local community

engagement

•

Emergency evacuation

plans

•

Risk management

•

Balanced and diverse

portfolio

•

Moderation of host

government demands

and legislation

•

Indeterminate and

ongoing

>SDR: Improving safety performance at www.aga-reports.com/14/sdr/material-issues/safety-health/safety-performance

>IR: Refer to the discussion on safety performance in the regional review on pages 70 to 93

>SDR: Building workplaces free of occupational illness at www.aga-reports.com/14/sdr/material-issues/safety-health/occupational-illness#

>AFS: Refer to group note 36 on contingencies and contractual commitments on page 131

>SDR: Engaging with stakeholders, communities and governments at www.aga-reports.com/14/sdr/material-issues/stakeholder-engagement/

>IR: Refer to the regional review on pages 70 to 93

INTEGRATED REPORT 2014

TOP GROUP OPPORTUNITIES

We recognise that identifying and managing opportunities is an important component of risk

management. The company identiﬁes suitable opportunities, endeavouring to exploit, harness,

or maximise them with the aim of creating value from mitigating our risks. The following table

lists our key opportunities along with the strategy for each.

Top group opportunities

Type

Opportunity

Strategy

Operational

Beneﬁts from increase in gold

price enhanced by cost reduction

•

Actively improve the quality of the portfolio

•

Focus on margins through initiatives to improve all-in sustaining costs

and all-in costs, including Project 500

•

Improve leverage to the gold price

Technology step-change in

South Africa

•

AngloGold Ashanti Technology and Innovation Consortium (ATIC)

•

Proof of concept work relating to geological drilling, reef boring, ultra-

high strength backﬁll and haulage boring machines

•

Stakeholder identiﬁcation and engagement

Beneﬁts from weaker currencies

and lower oil price

•

Demonstrate leverage at operations most exposed to declining

currencies

•

Demonstrate leverage at operations that use most oil/diesel

Strategic

Colombia

•

Revised tenements strategy with focused exploration funding

•

Work to ensure that ‘social licence to operate’ is realised

•

Partnering options

Obuasi

•

Maintain integrity of site and infrastructure during limited operations

phase

•

Deliver feasibility study; reﬁne to ensure optimal returns from high-

margin, mechanised operation

•

Ensure buy-in for redevelopment from all stakeholders including

government

•

Ensure optimal regulatory and ﬁscal environment

•

Test market for potential, value-creating joint venture and ﬁnd optimal

funding structure

Business planning and portfolio

optimisation processes

•

Sound business planning with top-down goals

•

Portfolio rationalisation and optimisation

Asset sale or joint venture for

full value

•

Potential to realise full value in cash for sale or joint venture of operating

asset

•

Increased ability to deleverage in a value-enhancing manner

STRATEGY

>IR: Refer to the discussion on technology and innovation in Planning for the future on pages 111 to 117

>IR: Refer to the Americas regional review on page 88 to 93

Focus on people, safety and sustainability

•

Operational and safety underperformance negatively impacting improved track record (6)

•

Protracted labour-related strikes

(5)

•

Critical skills and talent retention

(16)

•

Failure to acquire or loss of ‘social licence to operate’ (17)

•

Legacy occupational and community health compensation claims/litigation (7)

Ensure ﬁnancial ﬂexibility

•

Adverse gold and commodity, and currency movements (2)

•

Protracted ﬁnancial pressure on business from depressed gold price coupled with high debt and

rising costs of mature asset portfolio (1)

•

Covenant compliance and inability to reduce debt (4)

•

Protracted labour-related strikes (5)

•

Legacy occupational and community health compensation claims/litigation (7)

•

Operational and safety underperformance negatively impacting improved track record (6)

Optimise overhead, costs and capital expenditure

•

Protracted labour-related strikes (5)

•

Failure to demonstrate and/or realise business case for Obuasi redevelopment (14)

•

Security of power supply and rising cost of power in South Africa (11)

•

Unfavourable regulatory environment changes

(15)

•

Operational and safety underperformance negatively impacting improved track record (6)

•

Input cost inﬂation exceeding cost containment and productivity strategies (10)

•

Asset integrity failures and compromised reliability at South African operations (13)

•

Operational disruption in West Africa resulting from outbreak of Ebola virus disease

(19)

Improve portfolio quality

•

Adverse gold, commodity and currency movements (2)

•

Inability to remain competitive impacting long-term investment case (8)

•

Protracted labour-related strikes (5)

•

Inability to develop projects to bring the Ore Reserve to account (3)

•

Lack of strategic growth projects (18)

•

Legacy occupational and community health compensation claims/litigation (7)

•

Failure to successfully operationalise ATIC technology step-change (12)

Maintain long-term optionality

•

Adverse gold, commodity and currency movements (2)

•

Inability to remain competitive impacting long-term investment case (8)

•

Inability to develop projects to bring the Ore Reserve to account (3)

•

Failure to demonstrate and/ or realise business case for Obuasi redevelopment (14)

•

Lack of strategic growth projects (18)

•

Elevated country risk in core production areas (9)

RISKS BY STRATEGIC OBJECTIVE

(Risk ranking as per page 31)

MANAGING AND MITIGATING RISKS continued

Strategically managing threats and capitalising on opportunities

>SDR: Implementing business strategy through people

>SDR

>SDR: Monitoring and respecting regulatory change

>SDR: Delivering a health value proposition to communities

INTEGRATED REPORT 2014

STRATEGY

Effective engagement is a prerequisite to our establishing mutually-
beneﬁcial relationships with stakeholders. These relationships, we
believe, are essential in maintaining our social licence to operate.

AngloGold Ashanti has a wide range of stakeholders. Relationships with communities,

government and regulators, employees, both individually and through afﬁliations such as

organised labour, community-based organisations (CBOs) and non-governmental organisations

(NGOs) are some of the most critical to our business.

Engagement takes place at a group level with stakeholders whose interests require them

to have an overview of the business as a whole, such as investors, employees, organised

labour unions, the media, regulatory authorities and certain government and civic organisation

representatives. At an operating level, each site is responsible for deﬁning its stakeholders

and for understanding the impact of operations on these stakeholders and of their potential

inﬂuence on the business. Engagement begins from early stages of exploration and continues

through to closure.

CRITICAL AREAS OF ENGAGEMENT

We have identiﬁed a range of stakeholders with whom we engage in respect of their diverse

issues and inputs. We aim to be continuously proactive in our engagement with stakeholders

and responsive to their issues and concerns as they arise. Our long-term objective is to create

value for all our stakeholders including shareholders, employees, business and social partners

by safely and responsibly exploring and mining as we work to deliver sustainable improvement

in free cash ﬂow and returns to all our stakeholders. As several operations approach the end

of their operating lives, engagement around closure becomes increasingly important, as has

happened at Yatela in Mali.

While much of our engagement with government and regulatory authorities takes place

individually and on company-speciﬁc issues, AngloGold Ashanti has also been active in various

industry bodies in all countries of operation, in support of industry positions on topics such as

legislation and regulation surrounding the mining sector.

A key focus for mining companies in these discussions is to promote regulatory certainty in

relation to the sector. Uncertainty regarding the regulatory or legislative horizon fuels negative

media comment, damages investor sentiment, and is ultimately harmful to the industry.

STAKEHOLDER ENGAGEMENT AND MATERIALITY

Our stakeholders

We deﬁne our stakeholders

as persons or groups who are

directly or indirectly affected

by our operations or projects or

whose interests in our operations

or projects can inﬂuence their

outcome. These include:

• Locally-affected communities

and individuals and their formal

and informal representatives as

well as civic, non-governmental

and religious organisations

and other groups with special

interests

• Government, politicians and

regulatory authorities

• Employees and their families,

and labour unions

• The media

• Suppliers, joint venture partners

and business peers

• The investment community,

including shareholders, current

investors, potential investors

and ﬁnanciers

Engagement

Stakeholder engagement is
a two-way process, involving
communication by the company to
stakeholders and by stakeholders
to the company. The icons
alongside represent the ﬂow of
communication.

Stakeholders

AngloGold Ashanti

Inward

Outward

Summary of critical areas of stakeholder engagement

Stakeholder group and engagement

Issues raised

Impact on stakeholder group and

impact on company

Locally affected communities and individuals and their formal and informal representatives as well as civic and religious

organisations and other groups with special interests

Detailed mapping of stakeholders is being undertaken at

sites where information is not currently available, inaccurate

or outdated. We are gathering and organising data relating to

our interactions with communities (commitments, complaints

and grievances, resettlement processes and socio-economic

baseline assessments) and improving measures for evaluating

the effectiveness of community engagement processes.

We frequently build our own capacity and strive to build that

of communities, local and national authorities. We allocate

ﬁnancial and human resources to working with communities to

ensure that they are empowered with information, consulted

on operational issues that may affect them and can effectively

provide input on their concerns and expectations in relation to

mining sector development.

Refer to the section titled Analysis of our external environment

(pages 22 – 25) for more information on active engagements

conducted in 2014.

•

Community investment

•

Local procurement

•

Infrastructure

development and

beneﬁt sharing

•

Impact of restructuring

and closures

•

Environmental and

health impacts

•

Resettlement and

compensation

•

Competition for land

use, water and energy

•

ASM and illegal mining

Outward: Unregulated and unplanned

impacts on communities could result

in loss of temporary and permanent

access to land and heritage as well

as livelihoods, and could have a

negative impact on health and well-

being. Through engagement, our

operations could have an immediate

and long-term positive impact on the

socio-economic development and

sustainability of communities and

livelihoods.

Inward: Conﬂict with communities

could delay or impede access to

projects and operations, resulting

in ﬁnancial and other losses, and

reputational damage. Through

engagement, the company earns its

licence to operate.

Government, politicians and regulatory authorities

We continually engage with governments on an ongoing basis

in all of the regions in which we operate. Substantial direct

payments are made to governments including taxes and royalties.

In 2014, payments made in the form of taxes and royalties

totalled $355m. We strive for transparency in all payments to

government, in support of the objectives of the Extractive Industry

Transparency Initiative (EITI) and in line with our values. In October

2014, a revised policy relating to political party donations was

implemented. The policy seeks to ensure that the process of

making donations to political parties is supported by a strong

business case. During 2014, AngloGold Ashanti contributed

$800,000 towards the democratic elections in Brazil and just

under $300,000 to elections in Colombia. All donations are

governed by AngloGold Ashanti’s values and compliance policies,

including its Policy on Anti-Bribery and Anti-Corruption, and

comply with any and all currently applicable laws and regulations

in the jurisdictions in which the donations are made, including

the US Foreign Corrupt Practices Act, and any other regulatory

requirements to which the company may be subject.

•

Safety and

environmental

performance

•

Regulatory compliance

•

Taxes

•

Security of tenure

•

Beneﬁts of mining

•

Labour relations

•

Local development

•

Housing and living

conditions

•

Wage negotiations and

industry’s economic

position

•

Safety, security and

stability

Outward: A key concern of

governments is the need to ensure

that the beneﬁts of mining ﬂow

through to the state at national, local

and community levels. In addition to

jobs, taxes, royalties and investment,

the beneﬁts of mining at a local

level include employment, skills

development, local procurement

and infrastructure and service

development.

Inward: Engagement is aimed at

establishing regulatory certainty

so as to create an environment

conducive for mining sector

investment and development.

STAKEHOLDER ENGAGEMENT AND MATERIALITY continued

INTEGRATED REPORT 2014

Stakeholder group and engagement

Issues raised

Impact on stakeholder group and

impact on company

Employees and their families, and labour unions

Engagement with employees is a two-way platform of
communication and is critical to ensuring increased
productivity, to maintaining a strategic focus and to motivating
employees to give of their best. Engagement is undertaken on
a wide range of issues, many of which are speciﬁc to the local
context. In South Africa, for example, employee indebtedness
is a continuing priority, while in Ghana, the focus has been
to invest in employee education and training to empower
retrenched employees.

In late 2014, a global employee engagement survey was
conducted. Areas highlighted included a ﬁrm belief in the company’s
values while those requiring attention and possibly intervention
were ethics, managerial effectiveness in developing trust, as well
as senior leadership practices, where employees would like to
see greater consistency between what is said and what is done.
Feedback on the survey results has been shared with employees.
Areas requiring improvement are being addressed.

Union representation at AngloGold Ashanti operations is high
– between 60% and 100% – with the exception being those
in Australia and in the United States, where organised labour
structures are not commonplace at our operations. Where
organised labour structures are in place, we engage positively
with the relevant union structures to seek mutually-beneﬁcial
outcomes to issues raised. We comply with local legal and
regulatory frameworks as well as with international codes,
including those of the International Labour Organization (ILO).

In South Africa, we continued to bring our employees’
organised labour representatives into a more meaningful
dialogue on key business issues, with a particular emphasis
on the economics of the industry and speciﬁc operations, the
gold market and the legal framework for the country’s industrial
relations. We have agreed with all union leadership for a core
leadership team from each union to undertake an entry-level
management course at a local university during 2015. In
addition to these initiatives, we identiﬁed the need for a more
direct dialogue between our employees in South Africa and
senior management. To this end, the CEO, the COO: South
Africa and various general managers undertook mass meetings
at each of the South Africa business units for the ﬁrst time in
the company’s history, an exercise that took over a week to
complete and covered several thousand employees at each
mine, plant and support business.

•

Employee safety and

health

•

Wages and beneﬁts

•

Accommodation and

living conditions

•

Employee

indebtedness

•

Job security

Outward: Improved safety, health

and well-being have marked impacts

on employees and their families. By

understanding and aligning with the

corporate strategy, employees have

access to development and career

fulﬁlment, as well as job security.

Unprotected industrial action may

have negative consequences as the

company will not compromise on

ensuring the safety of its employees

and its assets.

Inward: Improved safety and

health performance has a positive

impact on the company. Employee

engagement has a positive impact

on productivity. Good labour

relations reduces the potential for

industrial action and promotes a

collaborative approach to problem

solving in the workplace.

STRATEGY

Stakeholder group and engagement

Issues raised

Impact on stakeholder group and

impact on company

Employees and their families, and labour unions continued

This was done not only to thank our colleagues for an exemplary
safety performance and to apprise them of operational and
strategic developments in the business, but also to open the ﬂoor
to all questions in an exchange that in each case lasted several
hours. Informal feedback received to date shows that the exercise
was useful for all concerned and will be continued in the new year
to help improve communication and ensure a clear and consistent
picture of the business – with its opportunities and challenges – is
shared by everyone in the region.

The labour relations climate at Obuasi in Ghana remained peaceful
through the retrenchment process that preceded the transition
to limited operations. This was due in large part to the extensive
and open dialogue with all stakeholders, including employees,
their families, their organised labour representatives, community
and religious leaders, civic organisations and elected ofﬁcials at
local and national government level. We were at pains to provide
an unvarnished picture of the state of the Obuasi mine, the issues
that had led to its poor operational and ﬁnancial performance
over the past decade, and the plan to restore it to its place as an
important economic engine for the Ashanti region, and for Ghana
as a whole.

No days were lost to labour relations disputes across the
portfolio. This was a signiﬁcant achievement, given the
challenges of the labour relations environment in South Africa in
particular, as well as the business challenges posed by the low
gold price environment.

The media

We seek to engage regularly (at least quarterly) and transparently

with local and international media.

•

Operational

performance and

business sustainability

•

Labour relations

•

Safety and health

performance

•

Gold market

Outward: Engagement can enhance

understanding of the company, and

promote accurate reporting and

constructive relationships.

Inward: Successful engagement will

enhance the company’s reputation.

Suppliers, joint venture partners and business peers

We seek collaborative and mutually beneﬁcial relationships.

•

Impact of restructuring

and closures

•

Ongoing ﬁnancial

commitments

•

Modernisation and

innovation

•

Local procurement

Outward and Inward: Stable,

long-term and mutually beneﬁcial

relationships. Development and

support of local suppliers.

STAKEHOLDER ENGAGEMENT AND MATERIALITY continued

INTEGRATED REPORT 2014

Stakeholder group and engagement

Issues raised

Impact on stakeholder group and

impact on company

Financiers, investors and potential investors

We communicate regularly with our shareholders, investors,

potential investors and the providers of capital, in person and

by email, at our quarterly and annual results presentations,

conference calls, site visits, investor conferences and at one-on-

one meetings.

Underscoring this communication is compliance with the

regulations of the various exchanges on which we are listed.

•

Operational

performance and

business sustainability

•

Financial performance

•

Labour relations

•

Safety performance

•

Regulatory issues

•

Shareholder returns

•

Rehabilitation provision

Outward: Engagement can enhance

the valuation and credit rating of our

company and our access to cost-

efﬁcient capital.

Inward: During 2014, successfully

arranged new facilities with extended

maturity proﬁles and the easing of

banking covenants. A proposed

corporate restructuring and capital

raising transaction were cancelled

after extensive engagement with and

feedback from shareholders.

For further information on our stakeholder engagement see >SDR at www.aga-reports.com/14/sdr/.

MATERIALITY AND REPORTING

Selecting the issues for inclusion in our reporting is challenging in a company of the size and

diversity of AngloGold Ashanti. Our approach to content selection builds on an understanding

of the major challenges faced during the year and includes a reﬂection on what we seek to

achieve through our reporting and who we see as the primary audience. For the >IR, this

primary audience is the providers of capital.

The materiality process adopted is based on guidance provided by the International Integrated

Reporting Council (IIRC), of which AngloGold Ashanti is a pilot member, and of the Global

Reporting Initiative’s (GRI) G4 guidelines, as well as the AccountAbility AA1000 Stakeholder

Engagement Standard. The process involved gathering data from stakeholder engagements

which have taken place across the organisation to identify the issues of greatest concern.

Surveys within the company and with external stakeholders provided insight into their views

of our reporting.

The Audit and Risk Committee and
the Social, Ethics and Sustainability
Committee have reviewed the issues
identiﬁed, as well as the ﬁnal report,
to determine whether:
• the material issues for reporting

represented a balanced and
comprehensive view of the critical
areas of concern for the business
and for stakeholders

• there were additional or emerging

issues not identiﬁed but which
should be included

See also the >SDR at www.aga-

reports.com/14/sdr/material-issues.

STRATEGY

* These committees are the Audit and Risk and the Social, Ethics and Sustainability committees.

P42-63

CEO’s review and strategic
outlook

CFO’s report

Board of directors

Executive management

Managing our human
resources

A DECISIVE

STRATEGIC

RESPONSE

TO A LOWER

GOLD PRICE

In this section, senior
members of the
organisation review
AngloGold Ashanti’s
performance for the year
and the steps taken to
achieve our strategic
objectives. Also discussed
is the outlook for
the company.

LEADERSHIP

INTEGRATED REPORT 2014

CEO’S REVIEW AND STRATEGIC OUTLOOK

Fellow shareholders and stakeholders,

After another eventful year, it is useful to reﬂect on how far we have
come in the past two years in particular, and how well AngloGold Ashanti
has responded to the immense challenges faced by our industry.

I write this year’s letter with optimism for what the coming years have in store for our company’s

fortunes, and trust you will share these sentiments after reﬂecting on an impressive slate

of achievements.

Our strategy that was built on ﬁve pillars namely – a strong foundation of safety, people and

sustainability; ﬁnancial ﬂexibility; optimising expenditure; improving the quality of the portfolio;

and preserving long-term optionality – continues to enable us to improve sustainable free

cash ﬂow and returns. We are on course to become a stronger, more cost focused and

responsive company that can provide the gold price leverage that investors in the sector

are seeking.

Operating in a business ﬁghting a downturn, caused by a sharp fall in the price of its outputs,

is always challenging. After the drop in the gold price in 2013 we needed to take quick,

decisive action to reduce spending and increase not only the quantity, but also the quality of

our production. We did just that, while maintaining our long-term potential and improving our

industry-leading safety record. This team’s achievements of the past two years – to name only a

few – are signiﬁcant:

•

In safety and across all sustainability disciplines, we delivered our best ever two years in

the company’s history, with strong gains across all metrics. We reduced fatal accidents by

two-thirds in 2013 and by a further 25% in 2014, creating new milestones across all mines

and regions. Year-on-year we had 20% fewer injuries, which is a remarkable achievement.

In addition, we ended 2014 with the fewest number of reportable environmental incidents

recorded in the company’s history and we have continued to improve our relationships with

host communities and governments.

•

After a decade of shrinking production, our team has delivered the ﬁrst two consecutive

years of production growth of some 12% when compared to our 2012 base and 8% when

compared to 2013. We also delivered two signiﬁcant growth projects on time and on

budget. While this growth was encouraging, it bears repeating that our ongoing focus will be

to enhance margins of a quality production base.

•

We have delivered a sustainable step reduction in costs, regardless of which metric

one views – whether it be operating costs, overheads, capital expenditure or expensed

exploration. Our all-in sustaining costs for 2014 at $1,026/oz dropped 13% from $1,174/oz

in 2013. All-in costs fell 22% to $1,148/oz over the same period.

•

Turning to portfolio improvement, we commissioned two new projects on time and on budget

and sold Navachab (one of our non-core mines). Importantly, we successfully planned for,

and implemented the transition of Obuasi to limited operations phase, a much needed and

bold decision to stem signiﬁcant cash outﬂows and start in earnest the process to reposition

that operation as a potential future growth engine of our group.

•

We delivered the maiden Mineral Resource from the 23Moz (gold equivalent) Nuevo Chaquiro

deposit in Colombia.

•

For eight consecutive quarters, we have delivered on our production, cost and capital

expenditure guidance presented to the market. This is unprecedented.

•

Finally, we have, despite a 10% fall in the gold price, turned around the free cash ﬂow of the

business from a signiﬁcant cash outﬂow in 2013 to a positive cash ﬂow (before certain once-

off payments) in 2014.

Srinivasan Venkatakrishnan (Venkat)

Chief Executive Ofﬁcer

LEADERSHIP

“

I write this year’s

letter with optimism for
what the coming years
have in store for our
company’s fortunes,
and trust you will
share these sentiments
after reflecting on an
impressive slate
of achievements.”

Particulars

2014

2013

Change

Gold price received

$/oz

1,264

1,401

(10%)

Gold production

000oz

4,436

4,105

Total cash costs

$/oz

787

830

(5%)

Corporate and marketing costs

201

(54%)

Exploration and evaluation costs

144

255

(44%)

Capital expenditure

(1)

1,209

1,993

(39%)

All-in sustaining costs

$/oz

1,026

1,174

(13%)

All-in costs

(2)

$/oz

1,148

1,466

(22%)

Cash inﬂow from operating activities

1,220

1,246

(2%)

Adjusted EBITDA

1,665

1,667

Free cash outﬂow

(112)

(1,058)

89%

Free cash inﬂow/(outﬂow)

(3)

142

(1,058)

113%

(1)

Includes equity-accounted investments.

(2)

World Gold Council standard, excludes stockpiles written off.

(3)

Excluding Obuasi redundancies and Rand Reﬁnery loan.

These results show rigorous cost management, disciplined capital allocation and, above all,
expert operational management by our teams on the ground with good support from other
disciplines. In achieving these outcomes we have honoured commitments to our longstanding
supporters and investors and deﬁed the sceptics who believed this performance could not
be sustained. In this regard, I would like to thank our Chairman, Board of Directors, my
colleagues on the Executive Committee and especially every employee in AngloGold Ashanti
for the hard work that resulted in these remarkable achievements and consistency.

We bid a fond farewell to Richard Duffy who left us as CFO in 2014 after a long and distinguished
career with AngloGold Ashanti and wish him well in all his future endeavours. At the same time,
we are pleased to welcome Christine Ramon as CFO. Christine comes with an impressive
pedigree in senior professional and executive positions, both in South Africa and abroad.

You will recall our announcement on 10 September 2014 of our intention to engage
shareholders in a plan to split the company into separate South African and international
components (the latter to be listed in London). The plan was to have been facilitated
by a $2bn rights offer which would have left the South African vehicle debt free and the
international vehicle with a level of borrowings it could sensibly service, albeit with residual
debt guarantees from the South African company. (Details of the plan and its rationale can
be read here http://www.anglogoldashanti.com/en/Media/Special/CountryCheck.html). This
was one of a range of strategic options that were open to us, and was one we believed
would liberate signiﬁcant value over the long term by creating two investment vehicles,
each with distinct qualities and asset portfolios. Following consultations with our investors
we withdrew the proposal given that the equity injection required to facilitate the split was
deemed too onerous. We remain a uniﬁed entity with a diverse portfolio of gold-producing
assets and exploration prospects, and have in place a strategy to reduce debt, principally
from internal sources.

As we now look to 2015 and beyond, I am optimistic of what we can deliver as a company to our
colleagues, shareholders and the broader stakeholder group. Despite our defensive approach in
the last two years, let us not forget that we have not only grown production for the ﬁrst time, but
also increased margins. We now need to position the group on this strong foundation to show
visibility both in terms of further quality long-term growth and value creation – and we will do that.
As we start 2015, our priorities over the next few years will include:

•

Safety and health: Improving safety and health at every level in order to achieve our ultimate

goal of zero harm and, in so doing, eliminating the disruptions that poor safety records bring
to affected operations. We remember our colleagues who passed away during the year and
remain committed to employing all effort and technology as we strive to achieve zero harm.

•

Environment and communities: Continuing to forge closer partnerships with our host

communities and improving our environmental performance and compliance to ensure we
maintain our licence to operate for our mutual beneﬁt.

CEO’S REVIEW AND STRATEGIC OUTLOOK continued

“

I would like to

thank our Chairman,
Board of Directors,
my colleagues on the
Executive Committee
and especially every
employee in AngloGold
Ashanti for the hard
work that resulted
in these remarkable
achievements and
consistency.”

INTEGRATED REPORT 2014

•

People: Developing our team of top talent across all disciplines, so that we have the right
people, and in some cases new entrants to inject fresh thinking into certain roles, to help
deliver the value creation needed. I remain acutely aware of the retrenchments undertaken
over the past two years, a necessary action in the market environment in which we found
ourselves, and I realise how difﬁcult these were for all concerned. For those that remain, we
are focused on fostering cohesion and developing our teams across the business.

•

Production and costs: Realising our planned production and cost targets for 2015 and
beyond, which will require everyone in this business to remain vigilant in keeping productivity
and efﬁciency at the forefront of everything we do. Achieving our cost and production
budgets, every month and every quarter, remains critical.

•

Balance sheet ﬂexibility: As we have mentioned since the latter part of 2014, we will work

actively to reduce our net debt levels over the next two to three years to provide the company
with greater ﬁnancial ﬂexibility. But in doing so, we will not act in haste nor compromise long-term
value. As one of a number of options in this regard, we have initiated a plan to identify a joint
venture partner or purchaser in respect of our interests in the CC&V mine in the United States.

•

Providing clearer visibility to longer-term growth and value creation: We will build on
the production and margin growth that we have delivered, and continue to focus on key
differentiating characteristics of our portfolio, including:

•

South Africa: Our South African assets need to deliver to their full potential. We will need
to show that our sustainable cash generation ability from these assets will continue to
outpace our peers, given the superior quality and unique long-life nature of our asset
base. Our South African reef-boring technology also provides us with a strong positive
differentiator which we aim to ramp up to show value creation from our asset base.

•

CC&V expansion: With the high-grade mill spinning for the ﬁrst time in early 2015, the
mine life extension for this mine is ﬁrmly on the horizon, consolidating a much sought after
tier-one asset in a prized geography.

•

Obuasi: Despite its disappointing history, we should not underestimate what this asset
has to offer as a growth engine for the group. Having moved the asset to limited operating
phase and having begun to shed legacy cost structures that crippled the mine, our focus
now has moved into delivering a feasibility study that will position the underground mine
to being a more focused, efﬁcient, mechanised, high-grade operation with an attractive
cost structure and returns. The coming years will represent a critical inﬂection point for this
mine as it attempts to transition into a tier-one asset.

•

Other life-extension opportunities in our international portfolio: The 2014 planning
process showed us what levers we could pull to generate value regarding investment in
value-creating mine-life extensions at our other operations, particularly those in Australia,
Tanzania, the DRC, Ghana, Guinea and Brazil. We will continue to explore these options
and view them through the prism of capital discipline.

•

Optionality from Colombia: 2015 remains a critical year for us and further opportunities
will be explored in developing the Colombian portfolio.

•

Exploration: Over the last two years we have had to cut our spending and land holding
signiﬁcantly, focusing on the most prospective geology and jurisdictions in the portfolio.
It is a necessary trade-off in prevailing market conditions. Against the back drop of our
improved operating portfolio, we will continue to reﬁne our exploration programme with a
sharper focus and strict return requirements in our key operating countries.

Clearly, there remains much for us still to do. The team here is well placed to deliver on our
vision of creating a focused portfolio of lower-cost, long-life, high-quality assets that will enable
us to achieve sustainable cash ﬂow improvements and returns. We will continue to keep you
apprised of important developments throughout the course of the year.

Best regards

Srinivasan Venkatakrishnan
Chief Executive Ofﬁcer

19 March 2015

“

Clearly, there remains

much for us still to
do, but the team
here is well placed
to demonstrate again
that it can deliver
excellence.”

CFO’S REPORT

Delivered on consistent production and cost guidance amidst
continuing adverse market conditions. Our focus remains on
strengthening the balance sheet in the medium term and creating a
prudent buffer for volatility.

HIGHLIGHTS

•

Production of 4.436Moz – up 8% year-on-year

•

Total cash costs of $787/oz – 5% lower year-on-year

•

All-in sustaining cost of $1,026/oz – 13% lower year-on-year

•

Capital expenditure of $1.2bn – 39% below 2013

•

Exploration and evaluation costs $144m – 44% lower year-on-year

•

Adjusted EBITDA stable at $1,665m despite a 10% drop in gold price

•

Self-help measures progressed to deleverage in medium term

•

Free cash outﬂow shows strong improvement to $112m from $1,058m

EXECUTIVE SUMMARY

The year under review was marked by a further fall in the gold price, which decreased by

$137/oz or 10% over the course of the year. The impact of the drop in the gold price has been

proactively managed and the 2014 results reﬂect consistent operational and cost performance.

It is the second consecutive year of growth in gold production, with an overall 8% increase

being recorded year-on-year. At the same time, all-in sustaining costs per ounce improved by

13% year-on-year.

Signiﬁcantly lower year-on-year total cash and all-in sustaining costs were achieved through

the combination of production and overall cost improvements reﬂecting the ﬁrst full year of

operations at our two new low-cost mines (Kibali and Tropicana). In addition, our efforts to

tackle costs across a broad front underpinned the improvement in margins, through the Project

500 (P500) initiative, reductions in direct operating costs, corporate overheads and exploration

costs, and strict capital allocation.

We continue to focus on ‘self-help measures’ in three areas:

•

Review of the asset portfolio while actively seeking joint-venture partnerships in Colombia

and at Obuasi as well as pursuing the potential sale or joint venture of an operating asset

•

Cash ﬂow improvements through the optimisation of business plans and consolidation of

regional hubs

•

Leverage to exploit weaker currencies, and the consequently higher price in terms of these

currencies, and lower fuel prices.

Christine Ramon

Chief Financial Ofﬁcer

INTEGRATED REPORT 2014

LEADERSHIP

One of our ﬁve core strategic focus areas is to ‘ensure ﬁnancial ﬂexibility’ which means

structuring our balance sheet to allow us to meet our core funding requirements and to provide

a reasonable buffer for gold price volatility as well as other adverse unforeseen events. To

ensure continued ﬂexibility in the debt maturities schedule, reﬁnancing of the group’s revolving

credit facilities (RCFs) was completed mid-year. The new $1bn RCF and A$500m RCF were

agreed during July 2014 for a further ﬁve-year period. In addition, a looser ﬁnancial covenant

was concluded, with the net debt to adjusted EBITDA covenant at 3.5 times (previously 3

times), with one six month period waiver of up to 4.5 times, subject to certain conditions. The

$ and A$ RCFs have also been priced tightly, to reﬂect the current ﬁnancial market conditions.

The looser covenant is also applicable to the ZAR RCF.

AngloGold Ashanti’s credit rating was reviewed by both Moody’s Investor Service and

Standard and Poor’s (S&P), to Baa3 with a negative outlook and BB+ with a negative outlook,

respectively. The Moody’s rating places the company at the lowest level of investment credit

grade and S&P has the company at the top level of sub-investment credit grade. These ratings

remained unchanged.

The group’s balance sheet is highly geared and efﬁciently structured and the debt has long-

dated maturities. Apart from the R750m bond maturing in 2016 and the R1.5bn RCF which

matures in December 2018, the earliest international bond maturity date is in April 2020. The

high-yield bond ($1.25bn: 8.5%) issuers’ call can only be exercised from July 2016 onwards, at

the group’s discretion, allowing sufﬁcient time for the group to explore any ‘self-help measures’

ahead of any options around reﬁnancing or early redemption being assessed. The conclusion

of a potential asset sale and joint venture partnerships should help the group determine

whether or not to exercise the high yield bond call option.

Net debt and gold price

($bn)($/oz)

•

Kibali/Tropicana – developed

•

MWS/Serra Grande – acquired

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

3.13

3.11

2.06

0.61

1.29

500

1,000

1,500

2,000

Net debt

Gold price

0.0

0.5

1.0

1.5

2.0

2.5

3.0

1.22

1.25

1.97

2.81

1.67*

Cash flow from operating activities

Capital expenditure

Cash flow from operating activities
and total capital spend

($bn)

* Excludes hedge buy-back costs

CFO’S REPORT continued

Our medium term leverage target is 1.5 times net debt to adjusted EBITDA. We would like

to reduce our debt by approximately $1bn to take us to our comfort threshold which would

include a reasonable buffer for volatility, including the gold price risk and production disruptions.

Our aim is to achieve this debt reduction through a variety of ‘self-help measures’ as elaborated

above. Importantly we are under no external pressure to achieve this. This is an aspirational

target that can be achieved over the next few years.

Delivery against 2014 ﬁnancial objectives

Continue to maintain sufﬁcient balance sheet liquidity and ﬂexibility in a
lower gold price environment

The temporary relaxation of the banking covenant of 4.5 times net debt to adjusted EBITDA

expired with the June 2014 testing period, while the $ and A$ revolving credit facilities are set

to mature within the next ﬁve-year period. The group therefore moved prudently and proactively

to manage its ﬁnancial ﬂexibility and steps taken in this regard included:

•

Successful re-ﬁnancing in July 2014 of the group’s RCFs for another ﬁve years, including

the $1bn RCF (which was due to mature in July 2017) and the A$500m RCF (replacing the

previous A$600m RCF which was due to mature in December 2015)

•

Improved ﬁnancial ﬂexibility – the new banking covenant of 3.5 times – previously 3 times net

debt to adjusted EBITDA (with a one six month period waiver of up to 4.5 times subject to

certain conditions) – is applicable to all of the group’s RCFs. This adds further ﬂexibility to the

balance sheet liquidity especially in the light of the ongoing gold price volatility and prevailing

labour uncertainty in South Africa

Debt type

International debt facilities US$m*

Maturity date

Base currency

A$ RCF*

Jul 2019

AUD

US$ RCF

Jul 2019

USD

ZAR RCF*

Dec 2018

ZAR

5.375% bond

Apr 2020

USD

8.500% bond

Jul 2020

USD

5.125% bond

Aug 2022

USD

6.50% bond

Apr 2040

USD

Drawn amount Facility amount

Excludes DMTNP and local bond amounts outstanding at 31 December of $80m, ZAR calculated at R11.6/$, A$ facility calculated at A$0.8/$.

408

257

1,000

700

1,250

750

300

130

100

700

1,250

750

300

INTEGRATED REPORT 2014

LEADERSHIP

•

Managed net debt levels in 2014 – the group’s net debt to adjusted EBITDA covenant

ratio was 1.88 times at year end and was in line with the 1.86 of a year earlier, despite the

reduction in the gold price, additional funding required for the Obuasi redundancies and a

loan to Rand Reﬁnery. Subsequent to year end, external audit procedures conﬁrmed that

the gold gap at Rand Reﬁnery has not increased. Therefore any additional loan funding

requirements from shareholders are not envisaged at this stage.

Maintaining our focus on the management of costs to deliver competitive
all-in sustaining and all-in costs and continuing to target sustainable cash
generation

Management’s initiatives to deliver on competitive all-in sustaining and all-in costs included:

•

The initial stated purpose of P500 was to deliver speciﬁc targeted cost reductions. These have

now been achieved and exceeded, and are reconciled with the ﬁnancial reporting systems

•

The organisational redesign was completed and corporate costs as well as exploration costs

were signiﬁcantly reduced from 2013’s levels

•

Capital expenditure has reduced by 39% compared to 2013 reﬂecting project completion

and capital prioritisation

•

We delivered free cash ﬂow of $142m for 2014 which excludes the proceeds of $105m from

the sale of Navachab, despite a 10% drop in the gold price compared to 2013, before taking

into account the once-off non-operational cash outﬂows relating to the Obuasi redundancy

payments and the Rand Reﬁnery loan funding.

Our 2015 objectives

Looking ahead to 2015, the key ﬁnancial objectives are to:

•

Continue to focus on self-help measures (including the potential sale or joint venture of an

operating asset) to deleverage the balance sheet in order to maintain sufﬁcient liquidity and

ﬂexibility in a lower gold price environment

•

Focus on ﬁnancial and project risk mitigation by seeking joint venture partners for Colombia

and Obuasi

•

Review the asset portfolio with a view to rebalancing the portfolio with more-proﬁtable ounces

•

Maintain our focus on cost and capital discipline to deliver competitive all-in sustaining costs

and all-in costs

•

Continue to target sustainable cash generation. For 2015, signiﬁcant cost reductions have

been included in the annual business plans.

We are expecting our debt levels to remain steady at the end of 2015, taking into account our

estimated production, planned expenditures at budgeted exchange rates and commodity and

fuel price assumptions, although it may increase slightly in the ﬁrst half due to free cash ﬂow

proﬁling in South Africa from production and capital expenditure ﬂuctuations. This excludes any

proceeds from asset sales or joint venture partnerships that we may consider pursuing or the

impact of any operational or other disruptions.

In addition to a strong leverage to the gold price, our group’s operations also leveraged to

both the weaker average global currencies and the lower average oil price, which beneﬁts our

cash costs. In 2014, the drop in the gold price was partially offset by weaker global currencies

and the lower average oil price. In addition, the combination of just over 70% of the group’s

adjusted EBITDA from our international operations emphasises our geographical diversiﬁcation

and resilience to unforeseen production disruptions in the South African region.

Events subsequent to year end

AngloGold Ashanti currently considers joint venturing or selling its interest in the

CC&V mine

The company has initiated a plan to identify a joint venture partner or a purchaser in respect of its

interest in the CC&V mine in Colorado in the United States for full value. The CC&V gold mine is

a surface mining operation which provides oxidised ore to a crusher and valley leach facility, one

of the largest in the world. It is included in the Americas reporting segment and was acquired by

AngloGold Ashanti in 1999. The mine produced 211,000 ounces of gold in 2014. There can be

no assurance, however, that a sale and purchase agreement for this transaction will be entered

into or that any sales transaction will be completed.

AngloGold Ashanti currently considers selling its interests in Société d’Exploitation

des Mines d’Or de Sadiola S.A. (Sadiola) and Société d’Exploitation des Mines d’Or de

Yatela S.A. (Yatela)

The company currently intends to dispose of its 41% stake in Sadiola and its 40% stake in

Yatela. The mines are both situated in western Mali and are included in the Continental Africa

reporting segment. The Sadiola and Yatela mines produced 85,000 and 11,000 attributable

ounces of gold, respectively, in 2014.

Management was approached by a potential buyer for both mines who meets management’s

qualifying criteria and has asked for a binding bid. There can be no assurance, however, that

a sale and purchase agreement for these transactions will be entered into or that any sales

transactions will be completed.

ACKNOWLEDGEMENT

I took over the role of Chief Financial Ofﬁcer at AngloGold Ashanti with effect from 1 October

2014. The transition from my predecessor Richard Duffy was seamless, thanks to a strong and

diligent ﬁnancial team in the group. Our team, through their understanding of the challenging

economic and ﬁnancial pressures, has helped us proactively manage the ﬁnancial position

of the company. In addition, we have been able to deliver quality ﬁnancial information to our

stakeholders which reﬂects our objectives and values for long-term success. I would like to

thank our strong and enthusiastic ﬁnancial team in the group for their ongoing support and look

forward to the year ahead.

Best regards

Christine Ramon

Chief Financial Ofﬁcer

19 March 2015

CFO’S REPORT continued

INTEGRATED REPORT 2014

LETTER FROM CHAIRMAN OF THE AUDIT AND RISK COMMITTEE

On behalf of the Audit and Risk Committee of AngloGold Ashanti, I am
pleased to recommend to shareholders and other stakeholders our >IR.

It is the Audit and Risk Committee’s principal regulatory duty to oversee the integrity of the

group’s internal control environment and to ensure that ﬁnancial statements are appropriate

and comply with International Financial Reporting Standards (IFRS) and fairly present the

ﬁnancial position of the group and company and the results of their operations.

This committee also monitors the integrity of the group’s integrated reporting and annual

ﬁnancial statements and all factors and risks that may impact on reporting and is satisﬁed that

these do not conﬂict with the ﬁnancial results.

This report has been produced in line with the recommendations contained in King III and has

been guided by the framework published by the International Integrated Reporting Council

(IIRC) in December 2013. AngloGold Ashanti supports the work done by the IIRC and has been

a member of the group of pilot companies that have sought to implement integrated reporting.

This report subscribes to the principles embedded within the IIRC framework.

The company has continued to make progress in its journey towards integrated reporting.

In the year ahead we will continue to focus on the effectiveness of our risk management

processes. We will also continue with the integration of the combined assurance process

within AngloGold Ashanti to ensure value is derived through the various assurance processes.

Rhidwaan Gasant

Chairman: Audit and Risk Committee

19 March 2015

Rhidwaan Gasant

Chairman: Audit and Risk Committee

LEADERSHIP

BOARD OF DIRECTORS

AngloGold Ashanti has a unitary board comprising 11 directors – nine
independent, non-executive directors and two executive directors. The
board’s overall aim is to provide strategic leadership in ensuring the long-
term sustainability and success of the business.

BOARD COMMITTEES

INDEPENDENT
NON-EXECUTIVE
DIRECTORS

SM Pityana (Chairman)
LW Nkuhlu (Deputy Chairman)
A Garner *
R Gasant
DL Hodgson
NP January-Bardill
MJ Kirkwood
M Richter *
RJ Ruston

AUDIT AND RISK
COMMITTEE

R Gasant **
A Garner
LW Nkuhlu
MJ Kirkwood
M Richter
RJ Ruston

ASSURANCE

Internal Audit
Combined Assurance

RISK MANAGEMENT

GLOBAL IT STEERING
COMMITTEE

External Audit

SOX Compliance

Ore Reserve and
Mineral Resource

SOCIAL, ETHICS AND
SUSTAINABILITY
COMMITTEE

NP January-Bardill **
DL Hodgson
SM Pityana
S Venkatakrishnan

INVESTMENT
COMMITTEE

RJ Ruston **
A Garner
R Gasant
DL Hodgson
LW Nkuhlu
KC Ramon

REMUNERATION AND
HUMAN RESOURCES
COMMITTEE
MJ Kirkwood **
NP January-Bardill
LW Nkuhlu
SM Pityana
M Richter

NOMINATIONS
COMMITTEE

SM Pityana **
MJ Kirkwood
LW Nkuhlu

EXECUTIVE
COMMITTEE
S Venkatakrishnan **
KC Ramon
I Boninelli
CE Carter
GJ Ehm
RW Largent
DC Noko
MP O’Hare
ME Sanz

EXECUTIVE DIRECTORS

S Venkatakrishnan
Chief Executive Officer

KC Ramon
Chief Financial Officer

BOARD OF DIRECTORS

** Denotes committee chairman

* Appointed on 1 January 2015

Membership of the board and its committees

INTEGRATED REPORT 2014

INDEPENDENT NON-EXECUTIVE CHAIRMAN

Sipho Pityana (55)

BA (Hons), MSc, Dtech (Honoris)

Initially appointed an independent non-executive director on 13 February 2007. Appointed

Chairman on 17 February 2014

Chairman:

•

Nominations Committee

Member:

•

Remuneration and Human Resources Committee

•

Social, Ethics and Sustainability Committee

Sipho Mila Pityana is the Chairman of the Board of Directors, having assumed this role in

February 2014. Sipho has extensive business experience having served in both an executive

and non-executive capacity on several JSE listed boards of companies as well as running

his own company, Izingwe Capital Proprietary Limited, which he chairs. He is chairman of

the JSE-listed Onelogix and of Munich Reinsurance of Africa and a director of a number of

manufacturing companies including Aberdare Cables. He also served on the boards of Bytes

Technology Group, Afrox, SPESCOM the Old Mutual Leadership Group and Scaw Metals. He

previously worked as an executive director of Nedcor Investment Bank and managing director

of Nedbank.

In addition to his private sector track record, Sipho has extensive public sector experience

and international exposure. He was the ﬁrst Director General of the Department of Labour in a

democratic South Africa. As the Foreign Affairs Director General he represented South Africa

in various international fora including the United Nations, African Union, Commonwealth and

the International Labour Organization. He was one of the founding members of the governing

body of the Commission for Conciliation, Mediation and Arbitration (CCMA) and Convenor of

the South African government delegation to the National Economic Development and Labour

Council (Nedlac). He is a member of the Advisory Council of the Council for the Advancement

of the South African Constitution (CASAC).

DEPUTY CHAIRMAN AND LEAD INDEPENDENT DIRECTOR

Wiseman Nkuhlu (70)

BCom, CA (SA), MBA

Appointed to the board on 4 August 2006, resigned on 30 April 2009 and re-appointed

on 1 June 2009

Member:

•

Audit and Risk Committee

•

Investment Committee

•

Nominations Committee

•

Remuneration and Human Resources Committee

Wiseman Nkuhlu was ﬁrst appointed to the board on 4 August 2006 and resigned on

30 April 2009. He was re-appointed to the board on 1 June 2009, appointed Lead Independent

Director from February 2014 and Deputy Chairman from March 2014.

LEADERSHIP

BOARD OF DIRECTORS continued

Prof Nkuhlu, a respected South African academic, educationist, professional and business

leader, served as Economic Adviser to the former President of South Africa, Mr Thabo

Mbeki, and as Chief Executive of the Secretariat of the New Partnership for Africa’s

Development (Nepad) from 2000 to 2005. From 1989 to 2000, he served as a director

on a number of major South African companies or subsidiaries, including Standard Bank,

South African Breweries, Old Mutual, Tongaat, Hulett, BMW and JCI. Prof Nkuhlu was

president of the South African Institute of Chartered Accountants from 1998 to 2000

and principal and vice chancellor of the University of Transkei from 1987 to 1991. He is

currently a member of the Board of the Ethics Institute of South Africa, Datatec Limited, the

Nepad Business Foundation and the Chartered Director Governing body of the Institute

of Directors in South Africa. He was elected president of the Geneva-based International

Organisation of Employees (IOE) in May 2008 and served for two years. Lastly, he is a

trustee of the International Financial Reporting Standards Foundation which provides

oversight of the accounting standard setting operations of the International Accounting

Standards Board (IASB).

EXECUTIVE DIRECTORS

Srinivasan Venkatakrishnan (Venkat) (49)

BCom, ACA (ICAI)

Chief Executive Ofﬁcer

First appointed to the board on 1 August 2005 and as CEO on 8 May 2013

Member:

•

Social, Ethics and Sustainability Committee

Venkat was appointed CEO on 8 May 2013, after holding the position of joint acting CEO from

April of that year. He was previously Chief Financial Ofﬁcer (CFO) at Ashanti Goldﬁelds until its

merger with AngloGold in May 2004, creating what is now AngloGold Ashanti. Venkat became

CFO of the combined entity shortly after the merger and joined the board on 1 August 2005.

He is chairman of the Executive Committee and also a member of the Social, Ethics and

Sustainability Committee.

In his role as CFO, he oversaw funding for all of AngloGold Ashanti’s operating activities,

giving him a detailed knowledge of all of our mines and operating jurisdictions. He is a

member of the Financial Reporting Investigation Panel, an advisory panel of the JSE. He

was the executive responsible for eliminating a 12Moz hedge book, generating signiﬁcant

value for the company, and was the key executive behind rebuilding the balance sheet

through a series of successful debt ﬁnancings that introduced long-term tenor and more

favourable funding terms to the company’s credit proﬁle. During Venkat’s ﬁrst year as CEO

of AngloGold Ashanti, two new mines were commissioned on time and ahead of budget,

the company achieved its best ever safety performance and a signiﬁcant restructuring was

undertaken of operating and overhead costs in order to focus the business on delivery of

sustainable free cash ﬂow and returns. Venkat was also previously a director of corporate

reorganisation services at Deloitte & Touche in London.

BOARD

CHARACTERISTICS

Composition by HDSA* status

•

HDSA

• Non-HDSA

•

Non-South Africans

* Historically disadvantaged South African as

defined in terms of the Mining Charter

Length of service on the board

•

Less than two years

• Between two and six years

•

More than six years

Nationality

•

South African

• North American

•

British

•

Indian/British

INTEGRATED REPORT 2014

Christine Ramon (47)

BCompt (Hons), CA (SA), Senior Executive Programme

Chief Financial Ofﬁcer

Appointed to the board as CFO on 1 October 2014

Member:

•

Investment Committee

Christine joined AngloGold Ashanti as CFO and executive director with effect from 1 October

2014, in compliance with the JSE Listings Requirements. Christine has held senior ﬁnancial

management and executive positions in various companies, in particular as CFO and executive

director of Sasol Limited from 2006 to 2013. Prior to this, she was CEO of Johnnic Holdings

Limited, having previously served as its ﬁnancial director. Currently, she is a non-executive

director on the boards of MTN Group Limited and Lafarge (France). She previously served on

the boards of Transnet SOC Limited and Johnnic Communications Limited.

Christine is a member of the South African Institute of Chartered Accountants and the Association

for the Advancement of Black Accountants of South Africa. She served previously as a member

of the Standing Advisory Committee to the International Accounting Standards Board and

currently serves as Deputy Chair of the Financial Reporting Standards Council of South Africa.

Christine’s current portfolio includes ﬁnance and treasury, insurance services, internal audit,

taxation and information technology.

INDEPENDENT NON-EXECUTIVE DIRECTORS

Albert Garner (59)

BSE, Aerospace and Mechanical Sciences

Appointed to the board on 1 January 2015

Member:

•

Audit and Risk Committee

•

Investment Committee

Albert Garner has extensive experience in capital markets, corporate ﬁnance and mergers and

acquisitions having worked with Lazard Frères & Co., LLC for 35 years in various leadership

positions. He is one of the most senior bankers at Lazard, currently leading their special

committee practice and chairing their fairness opinion committee. He formerly led Lazard’s

corporate ﬁnance practice. Albert became a general partner in 1989 and is now Vice Chair –

US Investment Banking. Over the past 10 years he has advised and acted as lead adviser to

more than 50 companies and their boards of directors on transformative transactions.

Rhidwaan Gasant (55)

CA (SA)

Appointed to the board on 12 August 2010

Chairman:

•

Audit and Risk Committee

Member:

•

Investment Committee

Rhidwaan Gasant is the former Chief Executive Ofﬁcer of Energy Africa Limited, and sits on the

boards of international companies and chairs the Audit and Risk Committees of international

companies in the MTN Group. He is currently Chief Executive Ofﬁcer of Rapid African Energy

Holdings, a start-up oil and gas exploration company, focused on Africa.

LEADERSHIP

Industry sector experience

•

Executive management

• Mining

•

Finance

•

Mining/finance

Gender

•

Male

• Female

BOARD OF DIRECTORS continued

Dave Hodgson (67)

MSc (Civil Engineering), MSc (Mining) (Hons), BComm, Advanced Management Programme

Appointed to the board on 25 April 2014

Member:

•

Investment Committee

•

Social, Ethics and Sustainability Committee

Dave Hodgson formerly held a series of senior and executive positions over three decades

with the Anglo American and De Beers group of companies, and also held the post of Chief

Operating Ofﬁcer of AngloGold Ashanti from November 2001 through to his retirement in

April 2005. In addition, he has held non-executive directorships at Moto Gold Mines Limited,

Uranium One Inc., Goliath Gold Mining Limited, Auryx Gold Corporation, Montero Mining and

Exploration Limited, and Acacia Mining.

Nozipho January-Bardill (64)

BA, MA Applied Linguistics, Dipl Human Resources Development

Appointed to the board on 1 October 2011

Chairman:

•

Social, Ethics and Sustainability Committee

Member:

•

Remuneration and Human Resources Committee

Nozipho January-Bardill was an Executive Director, Corporate Affairs and spokesperson of

the MTN Group where she also served on the boards of a number of operations in the MTN

footprint. She is a former South African Ambassador to Switzerland, Lichtenstein and the

Holy See, and former Deputy Director General, Human Capital Management and Head of the

Foreign Service Institute in the then Department of Foreign Affairs (now DIRCO).

She is currently the founder and executive director of Bardill & Associates, a consulting company

focusing on strategic communications, high-level government relations, stakeholder management

and gender equality in the workplace. She serves on the board of Credit Suisse Securities,

Johannesburg and is also a member of the United Nations Expert Committee on the Elimination of

Racial Discrimination and was recently appointed Interim Chief of Staff of UN Women in New York.

Michael Kirkwood (67)

AB, Economics & Industrial Engineering

Appointed to the board on 1 June 2012

Chairman:

•

Remuneration and Human Resources Committee

Member:

•

Audit and Risk Committee

•

Nominations Committee

Michael Kirkwood is a highly experienced and respected former international banker, having

worked at the highest levels of Citigroup during his 30-year career with the bank. He is currently

chairman of Circle Holdings PLC and a senior adviser (former chairman) of Ondra Partners

LLP. He formerly served on the boards of Kidde plc, UK Financial Investments Ltd, Eros

International plc and as deputy chairman on PwC’s Advisory Board. He also previously served

as chairman of British American Business Inc., as president and a fellow of The Chartered

Institute of Bankers and as deputy chairman of the British Bankers Association.

INTEGRATED REPORT 2014

Maria Richter (60)

BA, Juris Doctor

Appointed to the board on 1 January 2015

Member:

•

Audit and Risk Committee

•

Remuneration and Human Resources Committee

Maria Richter is an experienced FTSE 100 non-executive director who has served on a

diverse range of UK and International boards. She previously served on the board of National

Grid plc in the UK from 2003 to July 2014 where she was the chairperson of the ﬁnance

committee and member of the audit and nominations committees. She currently sits on the

boards of Rexel Group, France, a global leader in the professional distribution of energy

products and services, and Bessemer Trust, a US wealth management company, and

is a member of the audit and compensation committees of Rexel and the remuneration

committee of Bessemer Trust. She also serves on the board of Pro Mujer International, a

women’s microﬁnance network and is chairman of the board of trustees of Pro Mujer UK.

Maria’s professional career spanned 1980 to 2002 during which time she served in various

positions at the former Dewey Ballantine, Prudential, Salomon Brothers Inc. and Morgan

Stanley & Co.

Rodney Ruston (64)

MBA Business, BE (Mining)

Appointed to the board on 1 January 2012

Chairman:

•

Investment Committee

Member:

•

Audit and Risk Committee

Rodney Ruston holds a degree in mining engineer and an MBA and has over 35 years

of business experience during which he has led private and publicly-listed companies

in the resources, oil and gas and construction industries. His international experience

as the chief executive of a heavy construction supply contractor coupled with chief

executive roles with operating resource companies provides the board with a broad

based director, who can provide insight and advice on the full range of domestic and

international activities in the AngloGold Ashanti business. Rodney is currently the chief

executive of County Coal Limited, a start-up Australian listed company, which he joined

in July 2012. He was previously chief executive officer and President of North American

Energy Partners Inc., a large Canadian mining and construction contracting company,

which he took public with a listing on the NYSE and the TSX. Prior to that he was

managing director of Ticor Ltd, an Australian-based titanium producer with operations in

Australia and South Africa.

COMPANY SECRETARY

Maria Sanz Perez (49)

BCom LLB, H Dip Tax, Admitted Attorney

Executive Vice President: Legal, Commercial and Governance and Company Secretary

Refer to page 123 for a description of the responsibilities of the company secretary.

LEADERSHIP

AngloGold Ashanti’s executive management team (Executive Committee)
comprises nine members of whom two are executive directors. This
committee oversees the day-to-day management of the group’s
activities and is supported by country and regional management teams
as well as by group corporate functions.

EXECUTIVE DIRECTORS

Srinivasan Venkatakrishnan (Venkat) (49)

BCom, ACA (ICAI)

Chief Executive Ofﬁcer

Venkat was appointed as CEO in May of 2013, having been joint CEO (with Tony O’ Neill) from

April of the same year. He had previously been CFO since 2005. Venkat reports to the board

and is responsible for creating, communicating and implementing the organisation’s vision,

mission and strategy. His extensive knowledge of the company and its international portfolio of

assets serves him well in this capacity.

Christine Ramon (47)

BCompt (Hons), CA (SA), Senior Executive Programme

Chief Financial Ofﬁcer

Christine was appointed an executive director and CFO with effect from 1 October 2014.

Her far-reaching experience in senior ﬁnancial management and executive positions in various

companies, including having been the CFO and an executive director of Sasol Limited from

2006 to 2013, stand her in good stead in the management of her current portfolio which

includes overseeing ﬁnance and treasury, insurance services, internal audit, taxation and

information technology.

SENIOR MANAGEMENT

Mike O’Hare (55)

BSc (Min. Eng.)

Chief Operating Ofﬁcer – South Africa

As the Chief Operations Ofﬁcer – South Africa, Mike’s portfolio includes three operating areas

(West Wits, Vaal River and Surface Operations). He also leads the company’s innovative

technology project in South Africa. He has 38 years’ experience in mining, having joined Anglo

American in 1977, and has knowledge and skills of deep underground mining that are highly

regarded globally.

Italia Boninelli (58)

MA (Psychology), Post Graduate Diploma in Labour Relations

Executive Vice President – People and Organisational Development

Holding the portfolio of Human Resources, Italia is responsible for the global people strategy at

AngloGold Ashanti where it is well recognised that ‘people are the business, and our business is

people’. With more than 25 years’ experience in human resources across a variety of industries,

including mining, manufacturing, healthcare and banking, Italia brings a wealth of knowledge,

particularly in the labour ﬁeld, which is crucial to domestic and international operations. She joined

the group in 2010 and is responsible for building a highly engaged and productive workforce.

EXECUTIVE MANAGEMENT

EXECUTIVE
MANAGEMENT

CHARACTERISTICS

Nationality

•

South African

• American

•

Australian

•

Spanish

•

Indian/British

Length of service at AngloGold Ashanti

•

Less than three years

• Between three and 15 years

•

More than 15 years

INTEGRATED REPORT 2014

Charles Carter (52)

BA (Hons), DPhil, EDP

Executive Vice President – Strategy and Business Development

Charles is responsible for group strategy, business development, corporate ﬁnance, investor

relations and communications portfolios. He has worked in the mining industry in South Africa

and the Americas for more than 24 years and has had responsibility for a range of additional

portfolios that include human resources, risk management, business planning and executive

responsibility for the company’s business in Colombia.

Graham Ehm (58)

BSc Hons, MAusIMM, MAICD

Executive Vice President – Planning and Technical

Graham, who has multi-commodity experience, has held senior leadership positions in AngloGold

Ashanti in Tanzania and Australia. His current portfolio entails safety, business process framework

(BPF), risk, asset optimisation, capital investment optimisation and monitoring of projects, studies

and exploration. The Planning and Technical portfolio is his accountability.

Ron Largent (54)

BSc (Min. Eng.), MBA

Chief Operating Ofﬁcer – International

Ron has more than 30 years’ experience in international mining operations and project

management. He joined the organisation in 1994 as Manager, Gold Operations for Cripple

Creek & Victor, and was promoted to Executive Vice President – Americas in 2007. He was

subsequently promoted to Chief Operations Ofﬁcer – International in 2013, and his portfolio

was extended to include Continental Africa. Effective January 2014, Australia was also included

in his remit. He is currently accountable for overall strategic and operational responsibilities for

production at the company’s mining operations across four continents and nine countries. In

addition, he leads a team mandated to remove $500m from the group’s operating cost base

within an 18-month period ended December 2014.

David Noko (57)

MBA, Post Graduate Diploma in Company Direction; Higher National Diploma – Engineering

Executive Vice President: Sustainability

David leads the sustainability portfolio which comprises the disciplines of health, the

environment, social and community affairs, corporate social investment, human rights, global

security, stakeholder engagement and government relations. In this role he sets the company

sustainability direction and strategy and positions the company externally as a leader within the

global sustainability landscape. He has extensive experience both within the mining industry

and beyond, having been in leadership roles at South African Breweries, Pepsi Cola, Air Chefs

and De Beers Consolidated Mines Limited prior to joining AngloGold Ashanti in 2012.

Maria Sanz Perez (49)

BCom LLB, H Dip Tax, Admitted Attorney

Executive Vice President: Legal, Commercial and Governance and Company Secretary

Maria partners with the company’s business leaders to ensure AngloGold Ashanti complies with

legal requirements across the group. Other responsibilities are compliance, company secretarial

functions, integrated reporting and corporate cost reduction. She is also accountable for the

legal and commercial aspects of global procurement. Maria has been with the group since 2011

and has worked in similar positions for leading South African companies in her career including

Investec, Sappi and Afrox.

Industry sector experience

•

Mining

• Finance

•

Executive management

•

Human resources

Gender

•

Male

• Female

LEADERSHIP

MANAGING OUR HUMAN RESOURCES

Our employees are key stakeholders in our business. We recognise that
the sustainability of our business includes/encompasses on our providing
wages, beneﬁts, working conditions and development opportunities that
will attract and retain the right people with the right skills.

It is one of our core values to treat each other with dignity and respect, believing that individuals

who are treated in such a way respond by giving of their best, which in turn creates both

personal and organisational advantages. To achieve this we seek to ensure that employees are

placed in appropriate roles and are equipped with the right skills and the means to deliver on

goals, as entrenched in the System for People and the groups’ business strategy.

SUSTAINING EMPLOYMENT

In 2014, AngloGold Ashanti employed on average 58,057 people (43,073 permanent

employees and 14,984 contractors) (2013: 66,434 people; 48,159 permanent employees and

18,275 contractors). The dramatic decline in the gold price has led to a change in our business

approach and business model with our business strategy aimed at improving the generation

of sustainable free cash ﬂow and returns by focusing on ﬁve key business objectives, namely:

people, safety and sustainability; ensuring ﬁnancial ﬂexibility; actively managing all expenditures;

improving the quality of the portfolio; and maintaining long-term optionality. This required some

refocusing on core business and costs, and the restructuring of operations.

We embarked on cost improvements at every level of our business. In re-basing our company,

we started at the top of the organisation – rationalising management structures and removing

unnecessary intermediaries and layers.

The greatest impact has been at our corporate ofﬁces across the group, in the South Africa

and Continental Africa regions. In consultation with employees, an organisational design review

was conducted and completed at corporate head ofﬁce and the Continental Africa region’s

ofﬁce and certain regional and organisational structures located outside of these, aimed at

reducing unnecessary costs by, inter alia:

•

Potentially removing any duplicated roles and accountabilities

•

Potentially eliminating activities that do not provide sufﬁcient value to the business

•

Enhancing cross-functional and divisional activity co-ordination and effectiveness

Employee wages and beneﬁts make up a signiﬁcant component of our cost base amounting to

39% in 2014 (39% in 2013). In 2014, payments to employees of wages and beneﬁts amounted

to $1,588m (2013: $1,593m).

As part of the P500 initiatives to reduce costs across all operations, all labour plans and

productivity improvement initiatives have been reviewed. New labour modules based on ideal

structures per discipline and utilising analytics on skills proﬁles and other demographic factors

are being developed, and tested on several mines in the Continental Africa, Americas and

Australasian regions. The interim results of this exercise were presented to the Remuneration

Committee in August 2014 and work is continuing on the practical implementation of the

revised labour plans.

Average number of employees

(employees and contractors)

10
11
12
13

13,192

48,854

15,176

46,066

17,993

47,829

18,275

48,159

14,984

43,073

Employees

Contractors

“

In 2014, AngloGold

Ashanti employed
– on average –
58,057 people
(43,073 permanent
employees and 14,984
contractors).”

INTEGRATED REPORT 2014

PEOPLE MANAGEMENT

Our System for People (SP) which provides leadership and supporting management

processes has helped us ensure employees are placed in the right roles, with clearly deﬁned

responsibilities, so that they are able to deliver against our goals.

During 2014, we focused on further integrating the principles governing the SP into our

human resources practices at all levels. These principles reinforce the central role of people in

achieving our business objectives and the value we place on treating one another with dignity

and respect.

Our aim was to simplify our human resources approach, translating it into practical action

which could be easily applied, which emphasised engagement focusing on relationships

and interaction at all levels of the business and which harnessed technology to improve and

streamline people management functions.

Improving engagement processes with all stakeholders has been identiﬁed as a key component

of our sustainability strategy and employees are no exception. Several key employee

engagement initiatives were undertaken in 2014, including a group-wide survey and a series of

‘town hall’ meetings with the CEO in the South Africa region.

DIVERSITY

AngloGold Ashanti’s operations span many different regions in a broad range of countries and,

in line with our values, we are committed to creating and preserving diversity in our workplaces.

During 2014, to emphasise and embed the diversity initiatives, a transformation policy was put

in place at a group level with the following objectives:

•

To create an underlying all-inclusive culture based on shared values

•

To put in place the necessary corporate policies and to ensure legislative compliance in

promoting transformation

•

To put in place targeted initiatives to address regional transformation imperatives, for example,

initiatives on issues such as equity ownership and employment equity that are relevant in the

South African regulatory context and localisation programmes in Continental Africa.

Initiatives focusing on increasing local employment and skills development are addressed in

the context of the group’s transformation policy.

In the South African context, the ﬁve-year targets for the Mining Charter were met, and this was

achieved through the appropriate talent management initiatives.

TALENT MANAGEMENT AND CAREER DEVELOPMENT

Talent management is embedded in the group’s human resources policies, which allocate

speciﬁc roles for mentoring and career development through the organisational structure.

Career development is undertaken in alignment with personal development objectives, which

in turn are consistently with company’s business needs and strategy.

LEADERSHIP

MANAGING OUR HUMAN RESOURCES continued

Given the corporate restructuring undertaken to reduce labour overheads at the corporate

ofﬁce during 2013 and 2014, there was little scope for talent acquisition. However, much

emphasis was placed on succession planning to retain talent and develop employees for more

senior roles.

Succession plans for the senior and executive levels of the organisation were prepared

and presented to the board in November 2014. These plans were developed to address

skills gaps and transformation targets, by putting together individual development plans

for each employee.

An extensive succession planning and talent pool review exercise was carried out in 2014 and

a full set of talent proﬁles for the extended talent pool was presented to the board in February.

Analytics were developed to report cover ratio and other turnover stats.

The CEO conducted one-on-one discussions with all Executive Committee members and his

subordinates once-removed (SORs). In line with this initiative all Executive Vice Presidents

assisted by their regional HR heads conducted talent discussions with all senior staff, and this

will be cascaded to all levels in 2015. The Long Term Incentive Plan (LTIP) metrics have been

revised to include succession and talent retention measures.

In addition, a development model for growing future general managers was ﬁnalised and the

Chairman’s Young Leaders Programme was initiated. This programme will see top technical

talent receiving executive and top management mentoring while they are exposed to multi-

disciplinary projects across our operations internationally, including exchange placements for

exposure in the different regions.

PERFORMANCE MANAGEMENT AND CAPACITY DEVELOPMENT

In line with our aim to harness technology so as to improve and streamline our people

management systems, a new online performance system is currently being introduced. It

was rolled out at the AngloGold Ashanti corporate ofﬁce in January 2014, prior to its global

implementation during 2015, when it will replace legacy or paper-based systems in all regions.

Some of the beneﬁts we believe will arise from the implementation of the online system are:

•

Enhanced strategic alignment – a common understanding of the organisation’s goals

and how each employee’s work contributes towards the achievement of these common

objectives

INTEGRATED REPORT 2014

•

Reduced role ambiguity – clarity regarding the accountabilities of each employee’s role and

a focus on meeting speciﬁc performance expectations

•

Increased communication and engagement – with managers offering regular feedback to

subordinates and providing opportunities for them to share their views on how their work is

carried out

•

Improved performance and results – as subordinates are coached by their respective

managers to help them identify ways to improve their own performance as well as the output

of the team

•

Better retention – increasing engagement levels as effective performers are recognised and

rewarded for their contribution to organisational performance.

This new performance management system will enable a more focused approach to

development plans, and the implementation of learning and development activities to address

speciﬁc developmental needs.

LABOUR AND HUMAN RIGHTS

We respect fundamental labour rights, including the right to organise and collective bargaining.

With the exception of Australia and the United States, where collective bargaining is not

common in the resources sector, collective bargaining structures are in place at all operations.

In South Africa in particular, collective bargaining is a signiﬁcant feature of our socio-economic

landscape, and initiatives to sustain and strengthen our collective bargaining structures have

been a priority during the year – see pages 39 and 40.

In 2014, we continued to implement the UN Guiding Principles on Business and Human

Rights to meet our obligations to respect human rights throughout our activities and in our

business relationships. In line with that commitment, we undertook to implement the three key

requirements set out in the Guiding Principles, namely:

•

development of a strong human rights framework anchored around a human rights policy

•

establishment of a process of human rights due diligence which is embedded in our business

processes and risk management framework

•

establishment of operational level grievance mechanisms to address and manage community

complaints and grievances effectively.

LEADERSHIP

P64-118

Highlights of the year

Five-year summaries:
ﬁnancial

Economic value-added
statement

Regional reviews

Mineral Resource and Ore
Reserve overview

100

Five-year statistics by
operation

111

Planning for the future

118

One-year outlook

FOCUS ON

QUALITY

OUNCES WITH

LONG-TERM

OPTIONALITY

This section reviews our
historical performance
from operational,
ﬁnancial and sustainability
perspectives.

PERFORMANCE REVIEW

INTEGRATED REPORT 2014

Gold production by region

(000oz)

2014

2013

•

South Africa

1,223

1,302

• Continental Africa

1,597

1,460

•

Australasia

620

342

•

Americas

996

1,001

Capital expenditure* by region

($m)

2014

2013

•

South Africa

264

451

•

Continental Africa

454

839

•

Australasia

285

•

Americas

394

410

•

Other

* Includes equity-accounted investments

2013

2014

All-in sustaining costs* by region

($/oz)

1,120

1,064

968

986

1,010

1,202

1,376

970

South Africa

Continental Africa

Australasia

Americas

2013 2014

Water use intensity by region

(kL/t)

0.69

0.71

0.56

0.84

0.45

0.67

1.03

0.44

South Africa

Continental Africa

Australasia

Americas

Energy use intensity by region

(GJ/t)

0.30

0.29

0.58

0.23

0.38

0.60

0.23

South Africa

Continental Africa

Australasia

Americas

South Africa

Continental Africa

Australasia

Americas

Greenfields exploration

AIFR by region

(per million hours worked)

11.85

1.56

10.73

3.81

3.57

Community investment by region
($m)

2014

2013

•

South Africa

8.1

8.4

• Continental Africa

3.9

13.3

•

Australasia

0.2

0.5

•

Americas

3.7

5.8

•

Equity-accounted

investments

(1.1)

(5.3)

* Excluding stockpile write-offs

Group:

4.4Moz

Group:

$14.8m

Group:

$1,026/oz

Group average:

(7.15 adjusted for effect of earthquake)

7.36

Environmental
incidents:

PRODUCTION

COSTS

CAPITAL
EXPENDITURE

ENVIRONMENT

COMMUNITY

SAFETY

$1.2bn

(2013: 4.1Moz)

(2013: $1,174/oz)

(2013:
$22.5m)

(2013: 10)

(2013: $2.0bn)

(2013: 7.48)

HIGHLIGHTS OF THE YEAR

Gold production increased for the second consecutive year, boosted by the contributions of new
mines, Kibali and Tropicana, which had their ﬁrst full year of production in 2014. The rationalisation
of corporate structures and marginal production continued with a range of initiatives – including
mine closure and asset sales – to improve the overall quality of the portfolio. Active management of
overhead and operating costs, to generate free cash ﬂow, remained a priority.

PERFORMANCE REVIEW

FIVE-YEAR SUMMARIES: FINANCIAL

Summarised group ﬁnancial results – income statement

US dollar million

2014

2013

2012

2011

2010

Gold income

5,218

5,497

6,353

6,570

5,334

Cost of sales

(4,190)

(4,146)

(3,964)

(3,892)

(3,550)

Gain (loss) on non-hedge derivatives and other
commodity contracts

(35)

(1)

(702)

Gross proﬁt

1,043

1,445

2,354

2,677

1,082

Corporate administration, marketing and other
expenses

(92)

(201)

(291)

(278)

(220)

Exploration and evaluation costs

(144)

(255)

(395)

(279)

(198)

Other operating expenses

(28)

(19)

(47)

(31)

(20)

Special items

(260)

(3,410)

(402)

163 (126)

Operating proﬁt (loss)

519

(2,440)

1,219

2,252

518

Dividends received

–

7 –

–

Interest received

Exchange (loss) gain

(7)

Finance costs and unwinding of obligations

(278)

(296)

(231)

(196)

(166)

Fair value adjustments on convertible bonds

(17)

307

245 188 (56)

Share of equity-accounted investments’ (loss) proﬁt

(25)

(162)

(30)

72 63

Proﬁt (loss) before taxation

216

(2,533)

1,261

2,370

405

Taxation

(255)

333

(346)

(737)

(276)

(Loss) proﬁt for the year

(39)

(2,200)

915 1,633

129

Allocated as follows:

Equity shareholders

(58)

(2,230)

897

1,587

Non-controlling interests

(39)

(2,200)

915 1,633

129

Summarised group ﬁnancial results – statement of ﬁnancial position

US dollar million

2014

2013

2012

2011

2010

Assets

Tangible and intangible assets

5,088

5,082

8,091

6,755

6,374

Cash and cash equivalents

468

648

892

1,112

575

Other assets

3,578

3,944

3,756

2,882

2,583

Total assets

9,134

9,674

12,739

10,749

9,532

Equity and liabilities

Total equity

2,871

3,107

5,494

5,120

4,113

Borrowings

3,721

3,891

3,583

2,488

2,704

Deferred taxation

567

579

1,084

1,148

900

Other liabilities

1,975

2,097

2,578

1,993

1,815

Total equity and liabilities

9,134

9,674

12,739

10,749

9,532

INTEGRATED REPORT 2014

Summarised group ﬁnancial results – statement of cash ﬂows

US dollar million

2014

2013

2012

2011

2010

Cash ﬂows from operating activities

Cash generated from operations

1,373

1,392

2,350

3,081

1,714

Dividends received from equity-accounted
investments

–

111

143

Net taxation paid

(153)

(164)

(453)

(379)

(188)

Cash utilised for hedge buy-back costs

–

(2,611)

Net cash inﬂow (outﬂow) from operating activities

1,220

1,246

1,969

2,813

(942)

Cash ﬂows from investing activities

Capital expenditure

(1,018)

(1,569)

(2,004)

(1,567)

(973)

Net proceeds (payments) from acquisition and
disposal of subsidiaries, associates and joint ventures

(464)

(684)

(117)

(44)

Net (payments) proceeds from disposal and
acquisition of investments, associate loans, and
acquisition and disposal of tangible assets

(11)

(8)

(70)

(62)

Interest received

Decrease (increase) in cash restricted for use

(20)

(3)

(19)

Other

(2)

(50)

(6)

Net cash outﬂow from investing activities

(943)

(2,040)

(2,775)

(1,722)

(871)

Cash ﬂows from ﬁnancing activities

Net proceeds from share issues

–

778

Net (repayments) proceeds from borrowings

(150)

858

1,215

(159)

648

Finance costs paid

(245)

(200)

(145)

(144)

(115)

Dividends paid

(17)

(62)

(236)

(169)

(117)

Acquisition of non-controlling interest

–

(215)

–

Other

(9)

(36)

(30)

–

Net (outﬂow) inﬂow from ﬁnancing activities

(421)

560

591 (463)

1,194

Net (decrease) increase in cash and cash equivalents

(144)

(234)

(215)

628

(619)

Translation

(16)

(30)

(5)

(102)

105

Cash and cash equivalents at beginning of year

628

892

1,112

586

1,100

Cash and cash equivalents at end of year

(1)

468

628

892

1,112

586

(1)

The cash and cash equivalents balance at 31 December 2010 includes cash and cash equivalents included in the statement of ﬁnancial position as
part of non-current assets held for sale of $11m. The cash and cash equivalent balance at 31 December 2013 includes a bank overdraft included in
the statement of ﬁnancial position as part of other liabilities of $20m.

PERFORMANCE REVIEW

FIVE-YEAR SUMMARIES: FINANCIAL continued

Ratios and statistics

Units

2014

2013

2012

2011

2010

Earnings

Adjusted gross proﬁt (loss)

1,028

1,351

2,389

2,678

(1,191)

Adjusted gross margin

(51)

Headline (loss) earnings

(79)

1,208

1,519

122

Adjusted headline (loss) earnings

(1)

599

988

1,332

(1,758)

Adjusted headline (loss) earnings

excluding hedge buy-back costs

(1)

599

988

1,332

787

Adjusted EBITDA

(1) (2)

1,665

1,667

2,529

3,134

1,897

Adjusted EBITDA margin

(1)

Interest cover

times

(Loss) earnings per ordinary share

Basic

US cents

(14)

(568)

232

411

Diluted

US cents

(14)

(631)

177

355

Headline

US cents

(19)

312

394

Adjusted headline

US cents

153

255

345

(473)

Dividends per ordinary share

US cents

–

Asset and debt management

Equity

2,871

3,107

6,082

5,880

4,987

Net capital employed

6,640

5,519

8,420

7,444

7,017

Net debt

3,133

3,105

2,061

610

1,288

Net asset value – per share

US cents

711

770

1,580

1,528

1,299

Net tangible asset value – per share

US cents

655

704

1,498

1,473

1,248

Market capitalisation

3,515

4,727

12,025

16,226

18,767

Return on equity

(1)

Return on net capital employed

(1)

Net debt to equity

104

100

Gold price

Closing price at year-end

$/oz

1,266

1,411

1,668

1,572

1,227

Average gold price received

$/oz sold

1,264

1,401

1,664

1,576

561

Other

Weighted average number of shares

million

408

393

387

386

372

Issued shares at year-end

million

404

403

385

384

Exchange rates

Rand/dollar average

10.83

9.62

8.20

7.26

7.30

Rand/dollar closing

11.57

10.45

8.45

8.04

6.57

Australian dollar/dollar average

1.11

1.03

0.97

1.09

Australian dollar/dollar closing

1.22

1.12

0.96

0.97

0.98

Brazilian real/dollar average

2.35

2.16

1.95

1.68

1.76

Brazilian real/dollar closing

2.66

2.34

2.05

1.87

1.67

(1)

Excludes hedge buy-back costs in 2010.

(2)

The adjusted EBITDA calculation is based on the formula included in the revolving credit agreements for compliance with the debt covenant formula
as speciﬁed in the revolving credit agreements.

INTEGRATED REPORT 2014

ECONOMIC VALUE-ADDED STATEMENT

For the year ended 31 December

US dollar millions

2014

2013

Economic value generated

Gold sales and by-product income

(1)

5,350

5,646

Interest received

Royalties received

–

Proﬁt from sale of assets

(2)

–

Income from investments

–

Total economic value generated

100

5,401

100

5,712

Economic value distributed

Operating costs

(3)

2,464

2,484

Employee salaries, wages and other beneﬁts

1,588

1,593

Payments to providers of capital

278

336

– Finance costs and unwinding of obligations

278

296

– Dividends

–

Corporate taxation

– Current taxation

(4)

165

134

Community and social investments

(5)

–

Loss from investments

(6)

–

Total economic value distributed

4,529

4,574

Economic value retained

(7)

872

1,138

(1)

Gold sales decreased by 5% year-on-year due to a 10% lower average price received of $1,264/oz, partially negated by a 9% increase in the ounces sold.

(2)

Includes a loss on sale of Navachab mine of $2m.

(3)

Includes retrenchment costs at Obuasi of $210m in 2014 (2013: nil).

(4)

Current tax charge (credit) by country is as follows:

US Dollar millions

2014

2013

South Africa

(18)

Argentina

Australia

–

(2)

Brazil

Ghana

Guinea

United States of America

(5)

–

Tanzania

Other

(13)

(5)

Community and social investments exclude expenditure by equity accounted joint ventures.

(6)

Includes $21m loan impairment and $45m net equity losses from Rand Reﬁnery (Pty) Limited.

(7)

Economic value retained excludes impairments and impairment reversals.

PERFORMANCE REVIEW

REGIONAL REVIEWS

South Africa

AngloGold Ashanti’s ﬁve South African deep-level mines and surface
production facilities are divided into three areas of operation: Vaal
River, West Wits and Surface Operations. At present, these three areas
comprise the following operations:

Vaal River

The Vaal River mining operations comprise three mines located around 170km to 180km from

Johannesburg, near the Vaal River on the Free State-North West Province border. These three

mines, which share a milling and treatment circuit, are:

•

Great Noligwa, a mature operation nearing the end of its life, adjoins Kopanang and Moab

Khotsong in the Free State. The mine primarily exploits the Vaal Reef by means of scattered

mining via a twin-shaft system over three main levels at an average depth of 2,100m.

•

Kopanang is located to the west of neighbour Great Noligwa and bound to the south by the

Jersey Fault. Gold is the primary output, with uranium oxide produced as a by-product, from

a single shaft system to a depth of 2,600m. It almost exclusively exploits the Vaal Reef.

•

Moab Khotsong is AngloGold Ashanti’s newest gold mine in South Africa. Stoping

operations began in November 2003 with full production achieved in 2010. Given the

geological complexity of the Vaal Reef, scattered mining is employed.

West Wits

The two West Wits operations, situated southwest of Johannesburg, on the border between

Gauteng and North West Province, are:

•

Mponeng, the world’s deepest gold mine and our ﬂagship operation in the South Africa

region, exploits the Ventersdorp Contact Reef (VCR) at depths of between 2,400m and

3,900m via a twin-shaft system. Ore is treated and smelted at the mine’s gold plant.

•

TauTona exploits both the Carbon Leader Reef (CLR) and the VCR via a three-shaft system,

supported by secondary and tertiary shafts sinking to depths of between 1,850m and

3,450m. TauTona’s infrastructure is to be used to access the remaining Ore Reserve at

the former Savuka mine. A link between the two mines reduces dependency on a single

infrastructure system, including ore passes. The integration of Savuka into TauTona has

been completed and is expected to extend TauTona’s life of mine. The hoisting of Savuka

ore via TauTona is planned to start in the second quarter of 2015.

Surface Operations

•

Surface Operations extracts gold from marginal ore dumps and tailings storage facilities on

surface at various Vaal River and West Wits operations. The hard rock business processes

hard rock material from underground as well as from marginal ore dumps. Surface Operations

also includes Mine Waste Solutions (MWS) which operates independently and processes

slurry material reclaimed hydraulically from the various tailings storage facilities. Uranium

is produced as a by-product, as is backﬁll that is used as mining support in underground

mined out areas.

Good progress is being made with the consolidation of the individual operations in each of

these areas into three operating entities so as to eliminate any duplication of services and

management. This consolidation will have both cost and efﬁciency beneﬁts. As an initial step in

this process, Great Noligwa mine employees have been successfully incorporated with those

of Moab Khotsong. The consolidation of the West Wits mines and of Surface Operations is

expected to follow in due course.

Contribution to regional production – 2014

•

West Wits

• Vaal River

•

Surface Operations

Contribution to group production – 2014

•

South Africa

• Rest of AngloGold Ashanti

INTEGRATED REPORT 2014

Key statistics

Units

2014

2013

2012

Operational performance

Tonnes treated/milled

38.4

39.2

22.2

Pay limit

(1)

oz/t

0.39

0.36

0.40

g/t

14.35

13.37

12.41

Recovered grade

(1)

oz/t

0.239

0.204

0.219

g/t

8.19

7.00

7.50

Gold production

000oz

1,223

1,302

1,212

Total cash costs

$/oz

849

850

873

Total production costs

$/oz

1,087

1,070

1,097

All-in sustaining costs

(2)

$/oz

1,064

1,120

1,189

Capital expenditure

264

451

583

Productivity

oz/TEC

4.40

4.47

4.19

Safety

Number of fatalities

AIFR

per million hours worked

11.85

12.63

13.24

People

Average no of employees: Total

29,511

32,406

34,186

– Permanent employees

26,056

28,526

29,740

– Contractors

3,455

3,880

4,446

Employee turnover

Training and development expenditure

37.5

Environment

Total water consumption

27,219

27,228

23,813

Total water use per tonne treated

kL/t

0.71

0.69

1.07

Total energy usage

11.31

11.80

11.65

Total energy usage per tonne treated

GJ/t

0.29

0.30

0.52

Total greenhouse gas (GHG) emissions

000t CO

2,981

(3)

3,025

(3)

3,009

Total GHG emissions per tonne treated

t CO

e/t

0.08

0.13

Cyanide used

10,100

9,688

6,129

No. of reportable environmental incidents

Total rehabilitation liabilities:

83.5

78.1

148.8

– restoration

12.2

10.0

43.7

– decommissioning

71.3

68.1

105.1

Community and government

Community expenditure

(4)

8.1

8.4

7.7

Payments to government

144

157

251

– Dividends

–

– Taxation

– Withholding tax (royalties, etc.)

– Other indirect taxes and duties

–

– Employee taxes and other contributions

100

122

131

– Property tax

– Other (includes skills development)

(1)

Refers to underground operations only.

(2)

Excludes stockpile write-offs.

(3)

The Eskom grid emission factor was revised by the National Business Initiative in consultation with Eskom, leading to a change in the electricity-
related emissions reported for 2012 and 2013. The ﬁgure reported for 2012 included Nufcor.

(4)

Includes corporate social investment expenditure.

PERFORMANCE REVIEW

SOUTH AFRICA

OPERATIONAL PERFORMANCE

Production

Production declined by 6%, predominantly a consequence of safety-related stoppages,

the aftermath of the earthquake experienced on 5 August 2014, and unscheduled shaft

maintenance at Mponeng.

The 5.3 magnitude earthquake affected the Vaal River mines. Production was halted at these

operations for ﬁve to ten days to allow for the aftershocks to subside and to undertake repairs

before production resumed. At Mponeng, production was adversely affected by safety-

related stoppages as well as an incident that occurred during shaft slinging, suspending

operations for seven days to allow for signiﬁcant repair work on damaged shaft steelwork

and to return the shaft to safe levels of service.

Production from Surface Operations was negatively affected by the decreased grade of the

material sourced from the marginal ore dumps. Mining ﬂexibility has been improved to enable

more active blending.

The region’s contribution to group attributable gold production declined to 28% from 32% in

2013. In addition, the Vaal River operations produced 1.3Mlb of uranium.

Costs

The intense focus on cost containment continued in 2014, in line with the Project 500 initiative

to reduce overall group costs by $500m in the 18 months to end 2014, cost reduction initiatives

were undertaken in the region. The emphasis on the management of labour costs, reef mining-

related activities, power consumption, contractors and the implementation of service-optimisation

strategies as well as a robust critical review of commodity- and services-related contracts all

contributed to lower operating costs. Inﬂationary pressures, which included increases in electricity

tariffs that exceeded inﬂation, were partially compensated for by cost savings from the Project

500 initiatives and also a weaker local currency. All-in sustaining costs for the year declined for

the second consecutive year, 5% to $1,064/oz.

Growth and improvement

Project Zaaiplaats at Moab Khotsong, which was temporarily halted in 2013, remains on hold.

Additional geological information gathered in the interim reﬂected a deterioration in the grade

of the project, making it economically unviable at current gold prices.

At Mponeng, phase 1 of the deepening project to access the VCR progressed well. Although

safety stoppages following a shaft incident led to some delays, stoping and ledging operations

have begun. The emphasis in the coming year will be to increase the volume of ore reserve

development so as to open up the high-grade Ore Reserve. Given the slump in the gold price,

phase 2 of this project to access the CLR was delayed slightly in 2014. Critical-path work

continued and included the installation of ventilation and refrigeration infrastructure to enable

the ramp-up to full project execution in 2015, should the capital budget be approved. This

project will also investigate the viability of optimised shift schedules with a view to improving

productivity and speeding up access to the higher-grade areas.

The uranium plant at Mine Waste Solutions (MWS) was successfully completed with the ﬁrst

deliveries in the fourth quarter of the year. The recovery in the uranium price during the year

was encouraging.

REGIONAL REVIEWS continued

South Africa

KEY PERFORMANCE

INDICATORS

Production

(000oz)

10
11
12
13

1,785

1,624

1,212

1,302

1,223

Productivity

(oz/TEC)

10
11
12
13

5.63

5.85

4.19

4.47

4.40

AIFR

(per million hours worked)

10
11
12
13

16.69

15.57

13.24

12.63

11.85

Total cash costs

All-in sustaining costs
(excluding stockpile write-offs)

Total cash costs and all-in
sustaining costs

(S/oz)

598

1,189

1,120

849

1,064

694

873

850

INTEGRATED REPORT 2014

Mineral Resource and Ore Reserve

As at 31 December 2014, the total Mineral Resource (inclusive of the Ore Reserve) for

the South Africa region was 85.63Moz (2013: 94.27Moz) and the Ore Reserve 27.45Moz

(2013: 30.9Moz). This is equivalent to around 37% and 48% of the group’s total attributable

Mineral Resource and Ore Reserve respectively.

SUSTAINABILITY PERFORMANCE

People

The South Africa region’s workforce averaged 29,511 people in 2014 – 26,056 full-time

employees and 3,455 contractors – as compared to 32,406 in 2013 and 34,186 in 2012

– a decline of 14% in two years. This decline in the workforce was a result of various cost

rationalisation initiatives implemented across the group over the past two years. Productivity

declined to 4.40oz/TEC in 2014 (2013: 4.47oz/TEC).

In the South Africa region, 94% of our workforce is represented by the four industry unions.

Union representation in the South African gold mining industry as a whole is as follows: AMCU

(27%), NUM (54%), Solidarity (2.5%) and UASA (6.5%).

During 2014, work continued with the incorporation of organised labour representatives in

dialogue on business issues. In particular, we have engaged with them on the economics of

our industry, the gold market and on the legal and statutory framework regulating industrial

relations in South Africa. Employee engagement included quarterly briefs by the chief

operations ofﬁcer on the company’s ﬁnancial and operational performance. In addition,

to effectively engage on the restructuring processes, the region established a central

restructuring plenary committee and a transformation committee, both aimed at achieving

consensus on various issues and forging improved relations between management and

the unions. AMCU signed a formal recognition agreement with AngloGold Ashanti in the

fourth quarter of the year, and has been fully integrated in all statutory labour committees.

The second year of the current wage agreement became effective on 1 July 2014 with

increases of 6.5% to 7% in wages. In line with the Deputy President’s Stability Agreement

(Framework Agreement for a Sustainable Mining Industry entered into by Organised Labour,

Organised Business and Government) and other items included in the 2013 wage agreement,

we began work on related matters, particularly employee indebtedness. This is a concern

at all levels. According to an audit conducted at mid-year, 1,900 employees in the South

Africa region had at least one garnishee order in force against their wages and salaries. In

terms of the indebtedness initiative, Masidibanise Izandla (‘let’s put our hands together’) the

services of legal ﬁrms have been retained to assist employees in their dealings with often

dubious business practitioners, especially credit providers. In addition, dedicated ﬁnancial

consultants have been employed by the company to provide ﬁnancial advice and to assist

with debt consolidation and management, and ultimately to eliminate debt altogether. Every

garnishee order in place is being scrutinised as are any instructions for new ones, prior to

their implementation.

The next round of wage negotiations is due to begin early in 2015 as the current wage

agreement comes to an end on 30 June 2015.

PERFORMANCE REVIEW

Capital expenditure

Capital expenditure declined by
41%, in line with the group-
wide cost optimisation and
rationalisation programme
and the resultant scaling back
of project investment. Capital
expenditure in 2014 was
again predominantly on ore
reserve development across all
underground operations and on
the Mponeng deepening project,
as well as stay-in-business
items and activities across all
underground operations.

Given the increasing need for improved communication with employees in the region, three

employee surveys were conducted during the year to identify speciﬁc needs and areas of

concern. The results of these surveys highlighted several key requirements:

•

Improved employee communication, in terms of the frequency, quality and the quantity of

information

•

Detailed investigations into unethical behaviour

•

Improved supervisor/management training as well as engagement

In response, engagement by senior management has been stepped up. Large group meetings

(town hall type meetings) have been held. These initiatives were supplemented by mass

meetings across all mines, hosted by the CEO, COO: South Africa and business unit general

managers. Refer to page 39 for further related information. A communication programme,

Your voice matters, to engage with employees via a digital platform, has been implemented.

This programme, which involves two-way communication between the company and its

employees in the South Africa region, will enable the company to communicate with those

employees who register to participate in the programme and for these employees to share

their views with the company.

Safety

Despite the region recording its best safety performance ever, there were tragically four

fatalities during 2014 (2013: six) – one at the Vaal River operations and three at the West Wits

operations. Three of these were caused by falls of ground and one was the result of an incident

involving piping and construction work.

All mines and plants in the region achieved 1 million fatality-free shifts and Kopanang, most

notably, has recorded three million fatality-free shifts. This was achieved despite the impact

of the 5.3 magnitude earthquake which resulted in minor injuries to 30 employees and the

evacuation and safe return to surface of 3,300 people in all at the Vaal River operations.

While work remains to be done to achieve our target of zero harm, much of the improved

safety performance can be attributed to the very successful visible felt leadership drive and the

observable steps taken (installation of bolts and netting, training and technological improvements

such as electronic systems to monitor the various aspects of underground working areas) to

make the working environment safer. Employee surveys conducted during the year conﬁrmed

that ‘Safety is our First Value’ is embedded in the psyche of employees.

Group-wide, safety efforts concentrated on expanding our understanding of how safety risks

arise and why safety incidents occur so as to develop a critical control methodology. Given the

higher frequency of safety incidents at the South African operations, the focus in 2014 was on

embedding this methodology at these operations, with the emphasis on the two major safety

risks: falls of ground and vertical transport.

REGIONAL REVIEWS continued

South Africa

Technology initiative

The Technology Innovation
Consortium continued to make
signiﬁcant progress towards
the development of the new
deep-level mining technology.
The aim, ultimately, is to
develop a cost-efﬁcient, safe,
mining method to implement
at our deep-level underground
operations in South Africa to
extract stability pillars and
areas that might otherwise not
be safe or viable to mine.

In 2015, the ﬁnal element
of work will be to compile a
deep-level mining method
based on this mining style. Key
to maximising the efﬁcacy of
this method will be enhanced
machine efﬁciencies. This
in turn will entail increasing
machine availability and a 24-
hour mining cycle. While such
working arrangements are still
to be negotiated with labour,
they would increase the global
competitiveness of the South
African mining industry.

INTEGRATED REPORT 2014

Health

Health statistics in the region have improved signiﬁcantly. One of the region’s major health

challenges, occupational lung diseases (OLD), particularly silicosis, are managed primarily by

reducing the level of exposure of employees to silica-bearing dust. During 2014, implementation

continued of multi-stage ﬁltration systems at ore transfer points as well as footwall treatment

to prevent the inﬁltration of dust into working areas. The progressive introduction of improved

controls has led to reduced exposure by South African employees to silica-bearing dust – 201

new cases were diagnosed in 2014 compared to 293 in 2013. Given the legacy of silicosis in

the industry as a whole, AngloGold Ashanti, together with four South African mining companies,

embarked on a joint collaboration to establish a process together with other stakeholders –

government, labour, employees – to address related compensation and medical care in the

South African gold mining industry.

The incidence of pulmonary tuberculosis (TB), another OLD, which has decreased substantially

over the past 10 years, has begun to plateau (see the >SDR for further details): 1.57% for

2014 compared to 1.50% in 2013 and a national average of 1%. Over the past decade, the

incidence of TB has improved by around 60%. Initiatives to combat TB, which apply to both

employees and contractors, are aimed at addressing the wide range of underlying contributing

factors to the disease and are being extended to communities around operations to further

underpin their effectiveness.

Noise-induced hearing loss (NIHL) is prevented by the silencing of equipment, the wearing of

hearing protection by employees and administrative controls. The incidence of NIHL continued

to decline in South Africa, with 30 cases diagnosed in 2014 (2013: 38 cases).

Environment

There was only one reportable environmental incident in 2014 – a threefold improvement

year-on-year. This performance exempliﬁes the ongoing operational improvements in process

water containment, stormwater control and tailings pipeline management over the last ﬁve

years. Also commendable is the work done at MWS in response to in-plant spillages and their

containment, as well as the incorporation of MWS into the environmental management system

of the South Africa region’s Surface Operations.

The risk of inter-mine ﬂooding and the associated costs remains a high priority:

•

The Vaal River operations continue to monitor closely and pursue all avenues to reduce the

potential ﬁnancial burden of the intended closure of neighbouring mines in the Vaal River

area. AngloGold Ashanti continues to use excess water from underground at its Vaal River

operations for hydraulic tailings reclamation at MWS.

PERFORMANCE REVIEW

05
06
07
08
09
10
11
12
13

Milestone compliance

Silica dust in samples

(%)

10.17

9.00

7.40

2.80

2.20

1.20

0.74

0.92

1.00

1.31

REGIONAL REVIEWS continued

South Africa

•

The West Wits operations continue to pump and discharge water at Blyvooruitzicht mine’s

4 and 6 shafts. Currently, the pumping of water is being conducted in terms of a directive to

pump and discharge water pending the ﬁnal issuing of a water use licence, the application

of which has been submitted to the regulatory authorities.

Since a carbon tax on greenhouse gas emissions for South Africa was ﬁrst proposed in 2010,

AngloGold Ashanti has actively engaged with government, industry partners and other experts

to ensure that when introduced, the tax is appropriately tailored to the South African business

context. Our ﬁnancial models have been revised to include the potential impact of such a tax,

currently scheduled to be introduced from the beginning of 2016. Almost 98% of AngloGold

Ashanti’s emissions in South Africa are Scope 2 emissions, that is emissions resulting from the

purchase of electricity from Eskom, the national power utility, which uses coal in its energy-

generation process.

In the interim, the focus remains on reducing energy usage at our energy intensive, deep-level

South African operations, from the perspective of both cost and emissions. These operations

account for approximately 65% of the group’s greenhouse gas emissions and 36% of its energy

usage. For more detail on the proposed carbon tax, see the >SDR.

The region’s strategic environmental focus areas remain integrated water management,

closure planning, waste management, knowledge management, legal compliance and the

dust mitigation programme for tailings storage facilities.

Stakeholder engagement and communities

The delivery of community development projects is informed by the Social and Labour Plans

(SLPs) compiled in accordance with the requirement of the South African Mining Charter and

its accompanying scorecard targets. The initial SLPs were for the period 2010 – 2014 and the

company’s performance against these plans and the targets set was audited during the course

of 2014. The Moloto audit, concluded in November 2013, conﬁrmed that by the end of 2014

AngloGold Ashanti would have met all its targets as required. Indeed, by December 2014 we

had met all the Mining Charter Targets and exceeded some.

The second set of SLPs, for the period 2015 – 2019, has been submitted to the DMR and

is available on our website under the Sustainability tab, (www.anglogoldashanti.com/en/

sustainability/MiningCharter/Pages/default.aspx). The community development projects and

targets detailed in these plans were compiled and agreed in discussions and negotiations with

the communities involved and other signiﬁcant stakeholders. The initial SLPs included board-

approved commitments amounting to $46.4m (R418m) for local economic and enterprise

development and community and human resources projects.

In 2014, $6.5m (R71.3m) was spent completing local economic development and on

community and human resources projects. The region delivered several such projects in

INTEGRATED REPORT 2014

2014 which were ofﬁcially launched in Merafong, including a library and a science laboratory

for schools in the Matlosana municipality as well another science laboratory for a school in

Lusikisiki, one of our labour-sending areas.

In addition to these infrastructure projects, income-generating local-economic development

projects began with the implementation of the social and labour plans (SLPs) for the Vaal

River and West Wits operations. One of these projects, the Merafong Agricultural Project,

employs 20 people and has already planted sugar bins on 2ha of land. This project is a

partnership between AngloGold Ashanti, which funded the project, and the Merafong Local

Municipality, which donated the land. Other partners are the departments of Agriculture and of

Social Services. This is a true demonstration of how public-private partnerships can contribute

meaningfully to local economic development and towards poverty reduction by creating and

supporting sustainable livelihoods.

During the year work continued in the labour-sending areas in remote villages of the Eastern

Cape. Employment was created through the support of a sheep-shearing project in Mthata, a

cattle farm in Lusikisiki, and piggeries in Libode and Ngqeleni. These projects are run by co-

operatives and the women in these villages who have unlocked value in the agriculture and

farming fertile Eastern Cape to generate income and derive disposable income.

Two youth business hubs in Merafong, also funded by AngloGold Ashanti, became operational

in the reporting period. The hub located in Matlosana created 35 jobs almost immediately. The

hubs were modelled around formalising what are traditionally informal businesses, such as hair

salons and car washes, among others, and situating them in one central, high-trafﬁc location.

The Social and Institutional Development Fund, which ﬁnances approved projects requested

by communities and NGOs which are beyond the scope of the SLPs and our Mining Charter

commitments, addresses social challenges relating to the Millennium Development Goals such

as helping to eradicate poverty, promote gender equality and sponsor youth development,

among others. This fund spent a total of $1.3m in 2014 (2013: $1.4m), bringing the total spent

to date to $4.4m, of which $1.5m was spent in labour-sending areas.

Illegal mining is of growing concern, particularly at the operations close by to those where

mining has been suspended. See the section in this report entitled Analysis of our external

environment for discussion on this.

External communication has also been improved with the This is Gold initiative, (www.

thisisgold.co.za) which has been undertaken in collaboration with three other South African

gold producers. This initiative provides insight into the local gold industry, its history, processes,

its contribution to the South African economy and its role globally, as well as the work being

done by the industry and the plans in place to improve its future prospects.

PERFORMANCE REVIEW

OUTLOOK

The emphasis in 2015 will remain
on cost containment, including the
consolidation of regional and mine
services, with beneﬁts expected
to be derived from reduced capital
expenditure, labour rationalisation
and efﬁciency improvements,
among others.

In 2015, attributable production
from the South Africa region is
expected to be between 1.18Moz
and 1.27Moz at a total cash cost
of between $797/oz and $849/oz
(all-in sustaining cost of between
$1,024/oz and $1,075/oz).
Capital expenditure of $272m to
$299m is estimated.

REGIONAL REVIEWS continued

Continental Africa

AngloGold Ashanti has six producing mines and processing operations
– of which the group manages four – in ﬁve countries in the Continental
Africa region, following much activity in 2014 with the sale of the
Navachab mine in Namibia, the transition to limited mining at Obuasi in
Ghana and the cessation of mining at Yatela in Mali.

Democratic Republic of the Congo

•

Kibali, which began commercial production in October 2013 is steadily ramping up

production. The mine is adjacent to the town of Doko and 180km from Arua on the Ugandan

border. The project is co-owned by AngloGold Ashanti (45%), Randgold Resources Limited

(45%) and Société Minière de Kilo-Moto (SOKIMO) (10%), a state-owned gold mining

company. Randgold Resources manages and operates the mine. It is expected that Kibali

will be one of the largest mines of its kind in Africa.

Ghana

•

Iduapriem, which comprises the Iduapriem and Teberebie properties in a 110km2

concession, is located in the Western Region of Ghana, some 70km north of the coastal city

of Takoradi and 10km southwest of the Tarkwa mine. Iduapriem is an open-pit mine and its

processing facilities include a carbon-in-pulp (CIP) plant.

•

Obuasi is located in the Ashanti Region, approximately 60km south of Kumasi. Mining

operations have primarily been underground, to a depth of 1,500m. Following a two-year

review of operational efﬁciencies, mining operations were signiﬁcantly curtailed. A feasibility

study investigating options to modernise and improve the life-of-mine plan is underway.

The focus of the study is not only on the economic and technical aspects but also security,

environmental obligations and community relations.

Guinea

•

Siguiri is a multiple open-pit oxide gold mine in the relatively remote district of Siguiri, around

850km northeast of the country’s capital, Conakry. The area has signiﬁcant potential for

gold mining and has long been an area of traditional artisanal mining. The gold processing

plant treats about 30,000t daily. AngloGold Ashanti holds an 85% interest in Siguiri, with the

remaining 15% held in trust for the nation by the Government of Guinea.

Mali

•

Morila is a joint venture between AngloGold Ashanti and Randgold Resources, which

manages the mine, and in which each has a 40% interest. The Government of Mali owns

the remaining 20%. Morila is situated 180km southeast of Bamako, the country’s capital.

The operation ceased mining operations in 2009 and currently treats low-grade stockpiles

and marginal waste. The plant, which incorporates a conventional carbon-in-leach

process with an up-front gravity section to extract the free gold, has an annual throughput

capacity of 4.3Mt. In 2014, 18.4Mt of material from the pit and 3.2Mt of stockpile material

were processed.

•

Sadiola is a joint venture between AngloGold Ashanti (41%) and IAMGOLD (41%). The

Government of Mali owns the remaining 18%. The Sadiola mine is situated in south-western

Mali, some 77km south-southwest of the regional capital Kayes. Mining takes place in ﬁve

open-pits. On-site surface infrastructure includes a 4.9Mt per annum carbon-in-leach (CIL)

gold plant where the ore is eluted and smelted.

Contribution to regional production
by country – 2014

•

Tanzania

• Ghana

•

Guinea

•

DRC

•

Mali

•

Namibia

Contribution to group production – 2014

•

Continental Africa

• Rest of AngloGold Ashanti

INTEGRATED REPORT

2014

Key statistics

Units

2014

2013

2012

Operational performance

Tonnes treated/milled

29.9

26.9

27.8

Pay limit

oz/t

0.039

0.049

0.041

g/t

1.345

1.669

1.273

Recovered grade

oz/t

0.054

0.055

g/t

1.66

1.69

1.70

Gold production (attributable)

000oz

1,597

1,460

1,521

Total cash costs

$/oz

783

869

830

Total production costs

$/oz

977

1,086

1,060

All-in sustaining costs

(1)

$/oz

968

1,202

1,235

Capital expenditure

454

839

925

Productivity

oz/TEC

14.36

9.97

10.97

Safety

Number of fatalities

AIFR

per million hours worked

1.56

1.97

2.26

People

Average no of employees: Total

16,070

16,625

16,621

– Permanent employees

8,739

10,778

10,014

– Contractors

7,331

5,847

6,607

Employee turnover

(2)

Training and development expenditure

Environment

Total water consumption

17,582

21,031

(3)

19,132

Total water use per tonne treated

kL/t

0.56

0.67

0.60

Total energy usage

8.95

12.01

12.13

Total energy usage per tonne treated

GJ/t

0.29

0.38

Total greenhouse gas (GHG) emissions

000t CO

785

969

978

Total GHG emissions per tonne treated

t CO

e/t

0.03

Cyanide used

10,549

13,720

14,065

No. of reportable environmental incidents

Total rehabilitation liabilities:

463.2

411.0

427.5

– restoration

291.9

273.3

275.1

– decommissioning

171.3

137.7

152.4

Community and government

Community expenditure

3.9

13.3

Payments to government

306

320

552

– Dividends

(4)

– Taxation

239

– Withholding tax (royalties, etc.)

108

106

149

– Other indirect taxes and duties

– Employee taxes and other contributions

– Property tax

– Other (includes skills development)

(1)

Excludes stockpile write-offs.

(2)

Includes the retrenchment of the entire workforce at Obuasi.

(3)

Annual water usage data restated to exclude domestic water consumption.

(4)

Adjusted for Ghana – additional 2012 dividend.

NR = not reported

PERFORMANCE REVIEW

CONTINENTAL AFRICA

REGIONAL REVIEWS continued

Continental Africa

•

Yatela is 80% owned by the Sadiola Exploration Company Limited, a joint venture between

AngloGold Ashanti and IAMGOLD, giving each a 40% stake. The balance of 20% is owned

by the Government of Mali. Yatela is situated 25km north of Sadiola. Mining excavation

activities have been suspended. Processing of the heap leach pads and ore already mined

will continue until the end of 2016. Ore extraction in most of the open pits has been

completed and the mine has begun closure and rehabilitation procedures.

Tanzania

•

Geita, one of our ﬂagship mines in the Continental Africa region, is located in northwestern

Tanzania, in the Lake Victoria goldﬁelds of the Mwanza Region, about 120km from Mwanza

and 4km west of the town of Geita. The Geita gold deposit, which is currently mined as a

multiple open-pit operation, has underground potential and is currently serviced by a 5.2Mt

per annum carbon-in-leach (CIL) processing plant. While Geita generates its own power, the

operation of its power generating facility is outsourced and fuel is delivered by road.

OPERATIONAL PERFORMANCE

Production

The ramp up and ﬁrst full year of production at Kibali more than offset the decline at Yatela

and the half-year contribution from Navachab which was sold in June 2014. The region’s

attributable production increased by 9%.

Kibali produced its ﬁrst gold in 2013, ahead of schedule, and delivered 527,000oz in

2014, of which 45% was attributable to AngloGold Ashanti. Over the ﬁrst 12 years of

operation – underground and open-pit – Kibali is expected to produce an annual average

of 600,000oz. These are high-margin ounces produced at a cost that is lower than the

group average.

During 2014, production at Kibali came largely from the open pit, while signiﬁcant development

of underground workings was carried out. Underground mining commenced following the

start of blasting of the ﬁrst stope in the latter of the year. The oxide plant was successfully

ramped up in early 2014 with the sulphide plant commissioned in the second half. Kibali’s

Ore Reserve is currently estimated at around 11Moz (attributable: 4.94Moz), accounting for

26% of the Continental Africa region’s Ore Reserve. Given the mine’s current life expectancy,

operations should be sustained until 2031.

Our largest operations in the region, Geita and Siguiri, recorded strong performances for the

year. At Geita, tonnes of hard sulphide ore milled surpassed 5Mt for the ﬁrst time, a result

of better mill running time and fragmentation control. This followed improvements in blast

fragmentation, the installation of a secondary crusher and improved carbon management

systems in the leach circuit. These improvements offset grade declines at the Star & Comet

pit; the failure of the pit wall at Nyankanga Cut 7; and delays at Geita Hill East pit.

During the fourth quarter, an evaluation of the merits of switching from owner to contractor

operations at Geita was initiated. A change could reduce costs, which would align with the

group strategy of enhancing operational cash ﬂows. Investigations into the feasibility of mining

and processing harder ore have begun, with a view to potentially extending the mine’s life.

At Siguiri, tonnes treated remained stable with a higher-than-expected improvement in

recovered grades contributing to an increase in production. The grades, however, declined in

the latter part of the year as higher-grade ore resources were depleted.

In Mali, production decreased overall as the mines continued to wind down, treating lower-

grade waste tonnes.

At Obuasi, while output increased marginally year-on-year, underground production was halted

in the fourth quarter. Processing of tailings and aboveground stockpiles is continuing. This

KEY PERFORMANCE

INDICATORS

Production

(000oz)

10
11
12
13

1,492

1,570

1,521

1,460

1,597

Productivity

(oz/TEC)

10
11
12
13

11.24

11.41

10.97

9.97

14.36

AIFR

(per million hours worked)

10
11
12
13

5.26

3.03

2.26

1.97

1.56

Total cash costs

All-in sustaining costs
(excluding stockpile write-offs)

Total cash costs and all-in
sustaining costs

($/oz)

712

1,235

1,202

783

968

698

830

869

INTEGRATED REPORT

2014

was in line with the initiative to downscale the operation temporarily while a feasibility study is

undertaken to explore options for its long-term sustainability.

Tailings retreatment continued during the year, contributing to an improvement of close to

2% in ounces produced year-on-year, as we continued to fulﬁl environmental responsibilities.

Development of a decline from surface to the existing underground mining blocks continued in

2014. The decline will allow development of the appropriate infrastructure to enable mechanised

operations and de-bottleneck the mine, which was constrained by an outmoded, labour-

intensive mining method and also ageing and sub-optimal vertical hoisting infrastructure.

By year-end Obuasi had successfully transitioned to limited operations and the entire

workforce had been retrenched. A limited number of employees was recruited on a one-year

ﬁxed-term contract while the feasibility study is underway. The study is due to be completed

in 2015.

Costs

Project 500 gained signiﬁcant traction in the region, with noteworthy gains made in several

areas. In looking to improve process recoveries, an initiative to optimise dissolved oxygen

levels improved recoveries across all major operating sites, particularly at Geita, Siguiri and

Iduapriem. Mine plans were optimised, with low-margin or loss-making ounces removed,

while labour efﬁciencies were realised across the region. The expatriate contingent was

reduced and consultant services curtailed. At Geita, mining efﬁciencies resulted in greater

tonnages moved with no additions to the ﬂeet, helping reduce unit mining costs. Work

was done to realise beneﬁt of a more favourable environment for buyers of contract mining

services due to excess capacity across the globe. Competitive bidding processes for mining

and related contracts were held at Siguiri, Geita, Sadiola and Iduapriem, with all resulting

in new contractors or more favourable contracts agreed. Considerable effort was also

directed at reducing working capital through the optimisation of consumable stores across

the regional portfolio, and engagement with governments in Tanzania and Guinea to reduce

indirect tax lock-ups.

The region as a whole also continued to realise the beneﬁt of more consistent operating

performance with tight management of all costs and capital. The region beneﬁted from the

inclusion of the ﬁrst full-year’s production from the Kibali mine, which contributed production

at lower-than-average cash cost. The sharply lower fuel price in the fourth quarter also aided

cost control efforts, particularly for open pits mines which operate large truck and shovel

ﬂeets and generate all or part of their own power from diesel or heavy fuel oil, like the major

mines in the region Geita, Kibali and Siguiri. As with the rest of the group, the focus on strict

capital allocation and a more concentrated exploration programme was also a strong feature

in Continental Africa. The net result of these initiatives was a 19% reduction in all-in-sustaining

costs to $968/oz, the lowest in the group.

Growth and improvement

Our emphasis has been on improving operational and cost efﬁciencies in response to gold’s

decline. Kibali’s cost-efﬁcient production ramp up has already contributed substantially to

overall production and a containment of overall costs per ounce. The production ramp up at

Kibali will further contribute additional ounces at a cost that is lower than the group average.

The focus for 2015 will be completion of the paste plant and the second hydro-power station

– Ambarau. The sinking of the vertical shaft remained ahead of schedule with a shaft depth of

720m at the end of the year with only 40m remaining.

In Guinea, despite indications of promising new developments, greenﬁelds exploration teams

had to be withdrawn during the latter part of the year as a precaution against the outbreak of

the Ebola virus disease.

Capital expenditure

With completion of much of the
work to establish operations at
Kibali, capital expenditure for
Continental Africa dropped to
$454m in 2014 from 2013’s
$839m and a further fall is
anticipated in 2015, with the
construction of the sulphide
plant largely complete. Capital
expenditure was reduced
almost entirely at Obuasi, which
was placed on limited mining.

“

Kibali produces

high-margin ounces
at a cost significantly
lower than the
group average.

”

PERFORMANCE REVIEW

REGIONAL REVIEWS continued

Continental Africa

SUSTAINABILITY PERFORMANCE

People

The average number of people in the workforce in the region declined, largely a result of

the retrenchment undertaken at Obuasi, to an average of 16,070 in 2014 from 16,625 in

2013. Regional productivity improved signiﬁcantly to 14.36oz/TEC. Most retrenchments were

undertaken toward the end of the year.

Overall, the labour relations climate remained relatively positive and stable. At Obuasi, labour

relations were peaceful and the relationship with the Ghana Mineworkers Union (GMWU) was

constructive throughout the retrenchment process and the transition period, during which

production was downscaled. Refer to page 40 for additional information.

Separate wage negotiations were conducted at Iduapriem where the existence of four different

unions representing different categories of employees presents a dynamic and challenging

labour relations environment. Although negotiations covering the 2014 period were protracted

and took several months to ﬁnalise, a mutually beneﬁcial settlement agreement was reached

without loss of production.

At Siguiri, the annual 2014 wage negotiations were concluded amicably as they were at

Yatela and Sadiola. As part of the Yatela mine closure, a life skills training programme for

employees facing retrenchment was completed in November 2014. Maiden annual wage

negotiations were successfully concluded with the Tanzanian Mines Energy Construction and

Allied Workers Union (TAMICO) which entered into a full recognition agreement following the

union’s achievement of the majority status required for the purposes of collective bargaining.

A joint capacity building workshop for both management and union representatives was

successfully conducted.

Health

Occupational health remains a top priority for Continental Africa, as with all our operations. The

main focus of the regional occupational health strategy is to combat noise-induced hearing loss

(NIHL), to reduce the incidence of silicosis at underground operations in Ghana and ﬁght malaria.

In 2014, a total of 152 cases of NIHL were reported in all (the high number due to exit medical

examinations of employees following their retrenchment) and nine cases of silicosis in Ghana.

The introduction of improved reporting systems in the Africa region highlighted the incidence of

NIHL. These will be addressed by the introduction of engineering and administrative controls,

including the use of personalised hearing protection which offers greater protection and a

greater level of comfort.

One of the most signiﬁcant community health risks in the region is malaria, which occurs

particularly in Ghana, Guinea, Mali, and Tanzania. The malaria intervention programmes in and

around our operations in these countries continued as did its roll-out in 25 districts in Ghana

under the auspices of the Global Fund project.

With the outbreak of the Ebola virus disease in West Africa, this became a serious health risk

in Guinea in particular and to a lesser extent in Mali. Measures were put in place to ensure

the company was prepared for any potential impact. By year-end, there had been no such

impact on our operations, although exploration activities in Guinea were suspended as a

precautionary measure.

Mineral Resource and
Ore Reserve

On 31 December 2014, the
region’s total attributable
Mineral Resource (inclusive of
the Ore Reserve) was 64.29Moz
(2013: 69.06Moz) and the
attributable Ore Reserve,
18.93Moz (2013: 24.41Moz).
This is equivalent to some 28%
and 33% of the group’s Mineral
Resource and Ore Reserve
respectively.

Safety

Overall safety performance in
the Continental Africa region
continued to improve. There
were no fatalities during the year
and the all injury frequency rate
improved to 1.56 per million
hours worked (2013: 1.97).

INTEGRATED REPORT

2014

Environment

Mining activities at the Yatela mine in Mali halted on 30 September 2013 and rehabilitation is

planned for completion in early 2019, with ﬁnal relinquishment of mining rights expected to be

in 2020. Read more detail about closure preparations at Yatela in the

>SDR

In addition to the operational challenges faced at Obuasi, AngloGold Ashanti faces a range

of socio-economic and environmental challenges at both of its operations in Ghana. Most

environmental issues in this region relate to the management of water, waste and tailings,

rehabilitation and pollution. Hand-in-hand with the downscaling of operations at Obuasi, a

major undertaking during the year was continued work to resolve the environmental legacy

issues at the mine. A 15-month environmental management plan (EMP) covering the period

from October 2014 to December 2015 was submitted to the Environmental Protection Agency

(EPA) in July, and a formal response is awaited. A full EMP (2016 to 2019) will be developed as

part of the feasibility study for submission to the EPA in 2015. For further detail, see the

>SDR

Stakeholder engagement and communities

Current work regarding artisanal and small-scale mining (ASM) is focused on developing more

comprehensive baseline information on the nature and scale of ASM activity surrounding our

operations. A database of relevant information on ASM activity is being compiled to support our

engagement with government. Based on this information, a multi-stakeholder partnership was

established that includes other large-scale miners, regulators and ASM associations. Funding

by the World Bank led to the formation of a management advisory group focusing on a pilot

best practice operation in the village of Lwamgasa, near Geita in Tanzania. This project, which

is supported by AngloGold Ashanti, aims to formalise ASM by facilitating the construction of

a small-scale mine and providing training on safer, more efﬁcient and environmentally friendly

mining and processing methods.

Resettlement processes were concluded successfully at Geita and at Iduapriem. At Geita, 18

households which had been living in temporary shelter were relocated to new housing in Tarzan

Valley and at Iduapriem, a 70-household community was resettled close by at Mankessim, an

area which is closer to amenities.

A limited relocation action plan (RAP) was completed for the Mofu satellite pit near Kibali.

The Gorumbwa RAP is expected to begin during 2015 with completion planned for 2016.

Human rights

An ambassador for human rights has been nominated at each site in the region to advance

human rights programmes and monitor compliance. Human rights audits are included in

combined assurance processes to identify potential human rights risks. Where security

incidents occur, they are dealt with in terms of the Voluntary Principles on Security and Human

Rights (VPSHR). These principles, together with our human rights policy, drive our approach to

human rights. During 2014, two VPSHR incidents occurred in the region.

At Geita mine the use of technology in conjunction with the deployment of skilled rapid reaction

teams, has been used to good effect to overcome the challenge of securing company property.

The mine, which covers an area of approximately 196.5km

, has been broken down into

geographical sectors using high-tech thermal surveillance cameras to detect potentially illegal

activity. The use of technology removes security personnel from situations of potential conﬂict

and ensures that response teams are furnished with the equipment and required information

to respond to situations if they occur.

OUTLOOK

In 2015, attributable production
from Continental Africa is expected
to be between 1.25Moz and
1.35Moz at a total cash cost of
between $788/oz and $839/oz
(all-in sustaining cost of $963/oz
– $1,011/oz).

Capital expenditure of around
$313m to $345m is planned.

As in the previous year, cost
containment and enhanced
productivity will remain priorities.

PERFORMANCE REVIEW

REGIONAL REVIEWS continued

Australasia

AngloGold Ashanti’s operations in the Australasia region include
Tropicana, one of our two newest mines. Tropicana completed its ﬁrst
full year of production in 2014.

The two AngloGold Ashanti operations in the region are:

•

Sunrise Dam, which is wholly-owned, is located 220km northeast of Kalgoorlie and

55km south of Laverton in Western Australia. Mining of the Crown Pillar at the base

of the 490m deep pit was completed in early 2014. By year-end, underground mining,

which is conducted by a contract mining company, was the primary source of ore. Ore

is treated via conventional gravity and carbon-in-leach (CIL) processing plant which is

owner-managed.

•

Tropicana, a joint venture between AngloGold Ashanti (70% and manager) and Independence

Group NL (30%), is located 200km east of Sunrise Dam and 330km east-northeast of

Kalgoorlie. First gold was poured ahead of schedule and on budget in September 2013,

following development approval in November 2010. The open pit operation features a large

scale, modern processing plant which uses conventional carbon-in-leach technology and

includes high-pressure grinding rolls for energy-efﬁcient comminution. Mining is carried out

by a contract mining company and the plant is owner-managed.

OPERATIONAL PERFORMANCE

Production

With the ramp up in production at Tropicana during the course of 2014, the mine’s ﬁrst full year

of operation, and considerably increased levels of output at Sunrise Dam, total production for

the Australasia region was 81% higher.

At Sunrise Dam, the underground mine transitioned to become the primary source of mill

feed in 2014, delivering 2.43Mt of ore to the mill for the year. Stockpiled intermediate grade

ore (average 1.45g/t) was blended with the underground ore to meet the processing plant

capacity, which saw throughput reach 3.8Mt in 2014, a 10% improvement on 2013 despite

the higher proportion of harder underground ore treated. Plant performance improved due to

the focus on engineering reliability, which signiﬁcantly reduced plant down time.

An intensive two-year project on planning systems and operational efﬁciencies resulted in

substantial productivity improvements in the underground mine, culminating in a record

675,503t of underground ore being mined in the December quarter – equivalent to an

annualised rate of 2.7Mt. This mining rate is expected to be maintained in 2015. The multi-

pronged productivity improvement strategy included an innovative approach to grade control

based on reverse circulation (RC) drilling that emulated the highly successful grade control

process in the open pit. The change to RC drilling combined with productivity improvements

gained in the underground mine drove mining costs down by more than 50% over the two-

year period.

Tropicana, which was ofﬁcially opened in March 2014 by the Western Australian Minister

for Mines, the Hon. Bill Marmion, completed its ﬁrst full year of operation. In total, the mine

produced 511,000oz of which AngloGold Ashanti’s share was 358,000oz. Open pit mining

focused on the Havana and Tropicana pits in 2014. During the year additional mining ﬂeet

was brought to the site to counteract a decrease in mining rates caused by poor equipment

availability and lower-than-planned productivity. Mining productivity improved in the fourth

quarter and it is anticipated that productivity rates will be back on target in the ﬁrst quarter

of 2015. Despite these challenges, feed to the processing plant was on budget, enabling

treatment of 5.7Mt for the year at a head grade of 3.06g/t and metallurgical recovery of

90%. Mine-to-mill reconciliation, in terms of both tonnes and grade, aligned extremely well,

providing conﬁdence in production forecasts going forward.

Contribution to group production – 2014

•

Australasia

• Rest of AngloGold Ashanti

Contribution to regional production
by mine – 2014

•

Sunrise Dam

• Tropicana

COSTS

Total cash costs for the region
declined by 23% and all-in
sustaining costs by 28%. Costs
for the Australasian region
were positively affected by the
ramp-up to full production at
Tropicana, and productivity
improvements at Sunrise Dam.
However, at Tropicana these unit
cost reductions were impacted
by higher mining costs resulting
from ﬂeet productivity issues and
increased plant maintenance
costs. These cost increases
however, were offset by savings
in other areas resulting in the
operation delivering on the cost
performance anticipated in the
feasibility study, consistent with
market guidance.

INTEGRATED REPORT

2014

Key statistics

Units

2014

2013

2012

Operational performance

Tonnes treated/milled

7.8

4.3

3.4

Pay limit

oz/t

0.07

0.09

0.08

g/t

2.29

2.82

2.42

Recovered grade

oz/t

0.072

0.070

g/t

2.45

2.39

Gold production (attributable)

000oz

620

342

258

Total cash costs

$/oz

804

1,047

1,211

Total production costs

$/oz

1,070

1,333

1,358

All-in sustaining costs

(1)

$/oz

986

1,376

1,680

Capital expenditure

285

369

Productivity

oz/TEC

62.00

49.64

43.46

Safety

Number of fatalities

AIFR

per million hours worked

10.73

(2)

7.91

6.33

People

Average no of employees: Total

832

925

494

– Permanent employees

194

281

110

– Contractors

638

644

384

Employee turnover

Training and development expenditure

Environment

Total water consumption

8,011

4,828

3,104

Total water use per tonne treated

kL/t

0.84

1.03

0.92

Total energy usage

5.52

2.81

2.08

Total energy usage per tonne treated

GJ/t

0.58

0.60

0.62

Total greenhouse gas (GHG) emissions

000t CO

359

174

125

Total GHG emissions per tonne treated

t CO

e/t

0.04

Cyanide used

4,398

1,658

1,331

No. of reportable environmental incidents

Total rehabilitation liabilities:

65.5

53.1

61.5

– restoration

32.0

21.9

26.8

– decommissioning

33.5

31.2

34.7

Community and government

Community expenditure

0.2

0.5

Payments to government

– Dividends

–

– Taxation

– Withholding tax (royalties, etc.)

– Other indirect taxes and duties

–

– Employee taxes and other contributions

– Property tax

–

– Other

–

(1)

Excludes stockpile write-offs.

(2)

Restated owing to injury reclassiﬁcation and/or progression of injury severity.

PERFORMANCE REVIEW

AUSTRALASIA

REGIONAL REVIEWS continued

Australasia

Growth and improvement

At Tropicana, additional maintenance and engineering work was carried out in the processing

plant during the year to close out construction work following commissioning and to optimise

sections of the plant with a view to lifting throughput beyond nameplate capacity in 2015. At

year-end regulatory approvals were received to complete an expansion of the process water

supply boreﬁeld that provides water to the operation. By the end of the ﬁrst quarter in 2015,

an additional 27 bores will have been installed and commissioned to take the number of bores

servicing the plant to 51 and capacity from approximately 750t of water per hour (tph) to more

than 1,000tph.

Analysis of data from a 3D seismic survey which was conducted across the Tropicana

ore bodies is expected to be completed in the ﬁrst half of 2015. This analysis will enable

more accurate and more cost effective targeting of deep drill holes to test for extensions

of mineralisation beneath the current open pit. This drilling data will augment work already

carried out on the Havana Deeps study to determine if the down plunge extensions to

the ore bodies continue to the north below Tropicana and Boston Shaker. Ultimately, this

information will determine whether these ore bodies could be mined via a large open pit or

by underground methods.

In July 2014, AngloGold Ashanti signed agreements with a natural gas infrastructure

company for the transportation of natural gas to Sunrise Dam and Tropicana. It is expected

that this will provide continuity of fuel supply, reduce exposure to diesel price volatility

and signiﬁcantly reduce the number of trucks on the site access roads. This will yield

important safety beneﬁts and will help in reducing road maintenance costs. Construction is

scheduled to start in the ﬁrst quarter of 2015 with ﬁrst gas due to be available at Tropicana

in January 2016. The power stations at both mines will be modiﬁed to run on 100% natural

gas. Backup diesel capability will be retained for emergencies. Gas power generation is

expected to reduce cash operating costs.

Mineral Resource and Ore Reserve

At 31 December 2014, the total attributable Mineral Resource (inclusive of the Ore Reserve)

for the Australasia region was 9.58Moz (2013: 8.63Moz) and the attributable Ore Reserve,

3.53Moz (2013: 3.81Moz). This is equivalent to around 4% and 6% of the group’s attributable

Mineral Resource and Ore Reserve respectively.

SUSTAINABILITY PERFORMANCE

People

The workforce in the Australasia region averaged 832 – 194 full-time employees and 638

contractors. Productivity remained high, with the Australasia region reporting 62.00oz/TEC in

2014 (2013: 49.64oz/TEC), again the highest in the group.

Safety

No fatalities were reported in the region and the 2014 AIFR was 10.73 per million hours worked

(2013: 7.91 – restated). The deterioration in safety performance was due to the reduced number

of hours worked as construction at Tropicana was completed. Sunrise Dam has retained its

independently veriﬁed OHSAS 18001 rating with Tropicana scheduled for its ﬁrst OHSAS 81001

certiﬁcation audit in 2015.

Diesel particulate exposure has recently been identiﬁed as a potential health risk in Australia.

Efforts to mitigate this potential impact are at an early stage.

Environment

Environmental management in the Australasian region has seen more prescriptive regulations

and an increasing requirement to provide greater transparency, more inclusive consultation and

more detailed public reporting on performance. Both Tropicana and Sunrise Dam continued

KEY PERFORMANCE

INDICATORS

Production

(000oz)

10
11
12
13

396

246

258

342

620

Productivity

(oz/TEC)

10
11
12
13

66.77

40.29

43.46

49.64

62.00

AIFR

(per million hours worked)

10
11
12
13

13.10

18.11

6.33

7.91*

10.73

* Restated owing to injury reclassifications

Total cash costs

All-in sustaining costs
(excluding stockpile write-offs)

Total cash costs and all-in
sustaining costs

(S/oz)

982

1,680

1,376

804

986

1,431

1,211

1,047

INTEGRATED REPORT

2014

to perform well in terms of the management of environmental incidents as they focus on their

three-year safety and environmental management plans, which include key performance

indicators on reportable incidents.

Water management is a focus area, mainly due to the arid environment in the Western Australian

goldﬁelds where the only available ground water is highly saline. Short-term water supply

constraints at Tropicana are being addressed with the expansion of borehole infrastructure to

increase the capacity of the water abstraction and delivery system, as discussed above under

growth and improvement. Potable water used in the accommodation villages at both Sunrise

Dam and Tropicana is desalinated using a reverse osmosis process and waste water from the

Tropicana village is in turn used in the processing plant where low salinity water is required,

such as in the gold elution circuit.

Biodiversity is another feature of the safety and environmental management plan and

this was an integral part of the development of Tropicana. As part of the operation’s

biodiversity offsets strategy in its approved environmental management plan, the Great

Victoria Desert Biodiversity Trust was established. A condition of the Federal Environmental

Protection and Biodiversity Conversation Act approval for the mine, the trust reflects

the Tropicana Joint Venture partners’ recognition of the need to base environmental

management decisions on robust science. The trust, in a model unique to the Western

Australian mining and environmental landscape, will fund research on the remote Great

Victoria Desert, where the mine is located. An independent trustee is accountable for

the trust’s financial management and the trust is being administered by a management

panel comprising an independent chairman, and representatives of Western Australia’s

Department of Parks and Wildlife and the company. Technical advisory panels will guide

scientific decisions and provide third party reviews and input into the research and on-

ground conservation work. The trust’s aim is to promote knowledge and understanding

of the Great Victoria Desert region and its biodiversity so as to benefit conservation and

scientific knowledge.

The Australian government withdrew its proposed carbon tax legislation during the course of

the year.

Stakeholder engagement and communities

In Australia, a ‘Think Local, Buy Local, Employ Local’ strategy has been adopted at both

the Australian operations to promote the growth of local supply networks. In terms of

the ‘Buy Local’ programme, where capability exists and where there is a competitive

value proposition, goods and services are procured from local vendors in preference to

those from outside the region. Procurement spend in the Goldﬁelds-Esperance region, in

which AngloGold Ashanti’s operations are located, is currently 18% of total spend, with

procurement from businesses in the rest of the state of Western Australia making up a

further 78% of the total.

AngloGold Ashanti has also played a leading role in developing indigenous-owned businesses.

An indigenous business development programme offers structured business coaching and

mentoring and ﬁve indigenous-owned businesses are currently supplying goods and services

to operations in Australia. For more information, see the

>SDR

Youth development programmes which aim to create opportunities for young indigenous

people are also a priority, especially given the remote and isolated location of our operations

in Australia, which is characterised by limited community resources, poor education

and health, minimal opportunities for work and high unemployment. Work readiness

programmes seek to support the transition of indigenous, female and disadvantaged youth

to the workplace through training and work experience which can lead to employment in

the mining industry.

OUTLOOK

Production at both operations is

expected to be marginally lower in

2015, with Tropicana maintaining

steady production from the ramp

up stage.

Further productivity and

production improvements at

Sunrise Dam are expected to

result in lower overall costs for

the region as a whole. Attributable

gold production in 2015 is

targeted at between 0.56Moz and

0.61Moz ounces at a total cash

cost of between $794/oz and

$845/oz (all-in sustaining costs of

between $953/oz and $1,001/oz).

Capital expenditure is budgeted at

between $71m and $78m.

Capital expenditure

Capital expenditure for
Australasia reduced
signiﬁcantly to $91m in
2014 (2013: $285m) with
the completion of much of
the construction at Tropicana
as well as completion of the
transition at Sunrise Dam
from open-pit to underground
mining. Capital expenditure at
Tropicana fell to $59m from
$241m in 2013 while at Sunrise
Dam expenditure was $31m
against $39m the previous year.

REGIONAL REVIEWS continued

Americas

AngloGold Ashanti has four mining operations – both open pit and deep
level mining – in the Americas region. In addition, there is an active
greenﬁelds exploration programme underway in Colombia.

Argentina

•

Cerro Vanguardia, in which AngloGold Ashanti has a 92.5% stake, is the company’s sole

operation in Argentina. Fomicruz, a state company operating in the province of Santa Cruz,

owns the remaining 7.5%. Located to the northwest of Puerto San Julián in the province of

Santa Cruz, Cerro Vanguardia operates multiple small open pits with high stripping ratios

and multiple narrow-vein underground mines. The metallurgical plant has a daily capacity of

3,000t and includes a cyanide recovery facility.

Brazil

•

AngloGold Ashanti Córrego do Sítio Mineração (AGA Mineração), which is wholly owned,

comprises two operational complexes located in the state of Minas Gerais, close to the city

of Belo Horizonte:

•

The Cuiabá complex includes the Cuiabá and Lamego mines and the Cuiabá and

Queiroz plant complexes. Cuiabá has been in operation for 29 years while Lamego is a

more recently developed underground mine. Ore from the Cuiabá and Lamego mines is

processed at the Cuiabá gold plant. The concentrate produced is transported 15km by

aerial ropeway to the Queiroz plant for processing and reﬁning. Total annual capacity of

the complete Cuiabá circuit is 1.7Mt. The Queiroz hydrometallurgical plant also produces

around 200,000t of sulphuric acid as a by-product, which is sold commercially on local

Brazilian markets. The Cuiabá complex is changing its mining method from cut-and-

ﬁll to sub-level stoping so as to increase the contribution of narrow-vein ore bodies to

production (from 15% to 40%) and to improve rock engineering controls.

•

The Córrego do Sítio complex comprises one surface (oxide) and two underground

(sulphide) mines, as well as a heap leach pad and sulphide plant.

•

Serra Grande, which is wholly owned by AngloGold Ashanti, is located in central Brazil in the

state of Goiás, about 5km from the city of Crixás. It comprises three mechanised underground

mines: Mina III (the ore body IV), Mina Nova (the Pequizão ore body) and Palmeiras – and an

open pit in the outcrop of the Mina III ore body. One dedicated metallurgical plant treats all

ore mined. Annual plant capacity is 1.3Mt. The mine has enhanced the group’s production,

Ore Reserve and Mineral Resource proﬁles through the 100% ownership, making a positive

contribution toward AngloGold Ashanti’s near-term gold production proﬁle in Brazil.

United States

•

AngloGold Ashanti holds a 100% interest in the Cripple Creek & Victor (CC&V) Gold Mining

Company’s Cresson mine, located in the state of Colorado. A surface mining operation

provides oxidised ore to a crusher and valley leach facility, one of the largest in the world.

Higher-grade ore with more sulphidic properties will be processed in a carbon-in-pulp (CIP)

mill to achieve better recoveries. A two-phase mine-life-extension (MLE) project is well

underway and is expected to increase production signiﬁcantly from 2015.

Colombia

•

Two advanced major exploration projects, La Colosa and Gramalote, are currently

underway in Colombia. Extensive exploration activities are also being conducted in the

region, across a reduced mineral tenement portfolio, by either AngloGold Ashanti teams or

together with joint venture partners. A signiﬁcant portion of the year was devoted to a third

noteworthy Quebradona project area, releasing the maiden resource for Nuevo Chaquiro

deposit. Refer to the section entitled Planning for the future on page 111 for further details.

Contribution to group production – 2014

•

Americas

• Rest of AngloGold Ashanti

Contribution to regional production
by country – 2014

•

Argentina

• Brazil

•

United States

INTEGRATED REPORT

2014

Key statistics

Units

2014

2013

2012

Operational performance

Tonnes treated/milled

26.1

26.7

25.7

Pay limit

oz/t

0.034

0.026

0.024

g/t

1.156

0.897

0.822

Recovered grade

oz/t

0.035

0.036

0.034

g/t

1.13

1.20

1.16

Gold production (attributable)

000oz

996

1,001

953

Silver (attributable)

Moz

3.1

3.3

2.4

Total cash costs

$/oz

709

671

669

Total production costs

$/oz

942

886

907

All-in sustaining costs

(1)

$/oz

1,010

970

1,006

Capital expenditure (100% basis)

394

410

409

– Attributable (including Colombia)

390

405

395

– Attributable (excluding Colombia)

388

391

387

Productivity

oz/TEC

16.35

16.63

17.47

Safety

Number of fatalities

AIFR

per million hours worked

3.81

(2)

4.74

(2)

5.20

People

Average no of employees: Total

(3)

8,588

8,374

7,896

– Permanent employees

5,944

5,979

5,509

– Contractors

2,644

2,395

2,387

Employee turnover

Training and development expenditure (excluding Colombia)

Environment (excludes Colombia)

Total water consumption

12,170

11,732

7,456

Total water use per tonne treated

kL/t

0.45

0.44

0.29

Energy usage

6.05

6.06

5.88

Total energy usage per tonne treated

GJ/t

0.23

Total greenhouse gas (GHG) emissions

000t CO

449

399

389

Total GHG emissions per tonne treated

t CO

e/t

0.017

0.013

0.015

Cyanide

(2)

used

6,428

6,203

5,807

No. of reportable environmental incidents

Total rehabilitation liabilities (includes Colombia):

272.8

236.6

249.5

– restoration

221.9

194.3

211.9

– decommissioning

50.9

42.3

37.6

Community and government (includes Colombia)

Community expenditure

3.7

5.7

5.1

Payments to government

261

314

356

– Dividends

–

– Taxation

103

146

– Withholding tax (royalties, etc.)

– Other indirect taxes and duties

– Employee taxes and other contributions

100

– Property tax

– Other

(1)

Excludes stockpile write-offs.

(2)

Restated owing to injury reclassiﬁcation and/or progression of injury severity.

(3)

100% basis and excluding Colombia and Denver regional ofﬁce.

PERFORMANCE REVIEW

AMERICAS

OPERATIONAL PERFORMANCE

Production

The year was a challenging one overall for the Americas operations and overall production from

the region declined marginally. Higher production from AGA Mineração and Cerro Vanguardia

failed to offset declines at CC&V and Serra Grande. Production was somewhat hampered by

lower grades for some mines as well as negative stockpile movements. Cerro Vanguardia’s

production for 2014 was the highest in 11 years, due mainly to improved heap-leach production.

AGA Mineração continued to deliver a strong performance with increased tonnage and feed

grades at both the Cuiabá and Córrego do Sítio complexes. Development here exceeded

expectations and production began from the new ore body at Córrego do Sítio (Sulphide II) and

full production rates were achieved at the underground Mine I.

At CC&V, production was negatively affected by several factors including increased amounts

of clay in the ore that resulted in reduced volumes and lower-grade ore being supplied to the

crusher. Certiﬁcation delays for an exposed liner necessitated modiﬁcations to the heap-leach

stacking plan, leading to deferred production in the early part of 2014.

The Americas region’s contribution to group attributable production declined to 22% due to

growth in Australia and Continental Africa. In addition, the region produced 3.5Moz (attributable)

of silver as a by-product.

Costs

Despite the intense focus on limiting cost increases over the past year, regional costs increased

by around 5%, due largely to inﬂationary pressures in the South American countries. The

higher levels of production at AGA Mineração and Cerro Vanguardia unfortunately failed

to offset increased costs at Serra Grande and CC&V. Although overall costs increased at

Cerro Vanguardia due to deferred stripping adjustments, the negative impact of stockpile

movement and inﬂationary pressures and wage increases, these were partially countered by

the increased production and weaker exchange rates. The depreciation of both the Brazilian

real and Argentinian peso helped to limit cost increases in those countries, as did various

cost management initiatives. Operating challenges resulted in regional all-in sustaining costs

increasing by 4%.

Taxation and royalty payments were lower at all operations, in line with subdued gold and

silver prices.

In line with the group cost optimisation drive, the focus of savings initiatives in the Americas

region was on labour, contractors, energy, consumables, and working and stay-in-business

capital. Various initiatives aimed at efﬁciency and production improvements (underground

mine-design optimisation, tyre-life extension, and the optimisation and stabilisation of CIL and

regeneration circuits), continued.

Cost-savings initiatives at CC&V focused on improving efﬁciencies derived from consumables

and tyres, and better ﬂeet time management. This enhanced crusher throughput and resulted

in savings of $4m.

In Brazil, potential savings identiﬁed in 2013 were addressed by initiatives implemented in 2014.

These cost and cash management programmes involved productivity improvements, process

optimisation, and reductions in power costs, materials pricing and administrative expenses.

REGIONAL REVIEWS continued

Americas

KEY PERFORMANCE

INDICATORS

Production

(000oz)

10
11
12
13

842

891

953

1,001

996

Productivity

(oz/TEC)

10
11
12
13

22.44

20.70

17.47

16.63

16.35

AIFR

(per million hours worked)

10
11
12
13

5.66

6.33

5.20*

4.74*

3.81

* Restated owing to injury reclassifications

Total cash costs

All-in sustaining costs
(excluding stockpile write-offs)

Total cash costs and all-in
sustaining costs

($/oz)

432

1,006

970

709

1,010

569

669

671

INTEGRATED REPORT

2014

Growth and improvement

Various growth programmes are underway at all operations in the region, the most signiﬁcant

of which is CC&V’s expansion project. The ﬁrst part of the two-phase MLE project began

production in 2011 and is expected to continue until 2016. MLE2 will expand the operation

to include a second valley heap-leach facility (VLF), a CIP mill to process sulphide material

and an associated gold recovery plant. This MLE project is expected to signiﬁcantly increase

production for CC&V while reducing operating costs. The mill began commissioning at the end

of 2014 and production is scheduled to begin in the ﬁrst half of 2015. The second VLF is due

to start production in the second half of 2016.

At Cerro Vanguardia, an underground mining expansion project is being undertaken to improve

efﬁciencies and productivity through underground mine design optimisation and optimisation

and stabilisation of the CIP and regeneration circuits.

At the Brazilian operations, the focus was principally on optimisation initiatives to improve

operational efﬁciencies. At AGA Mineração’s Córrego do Sítio complex, full production rates

were improved at both the sulphide and oxide mines. The brownﬁelds drilling programme at

Córrego do Sítio continued and identiﬁed satellite ore bodies close to existing infrastructure.

These exploration successes will potentially improve production both in the short term and

over the life of mine.

Colombia remains a key area of focus for the exploration programme and continues to

yield promising results. A particular success was the release of the maiden Inferred Mineral

Resource estimate for Nuevo Chaquiro, which is part of the Quebradona greenﬁelds exploration

programme. Studies and engagement with the local communities continue.

Mineral Resource and Ore Reserve

As at 31 December 2014, the total attributable Mineral Resource (inclusive of the Ore Reserve)

for the Americas region was 72.48Moz (2013: 61.06Moz) and the attributable Ore Reserve,

7.56Moz (2013: 8.82Moz). This is equivalent to around 31% and 13% of the group’s attributable

Mineral Resource and Ore Reserve respectively.

SUSTAINABILITY PERFORMANCE

People

On average, the workforce in the Americas region totalled 8,588 people for the year – 5,944

full-time employees and 2,644 contractors – as compared to 8,374 in 2013. Productivity for

the region was 16.35oz/TEC as compared to 16.63oz/TEC in 2013.

Although the decline in commodity prices and the slowdown in the Brazilian economy will

potentially affect the unemployment rate and possibly reduce the competition for employment

in Brazil, it is not certain that this will eliminate the skills shortfall.

Safety

Two fatalities were reported in the Americas region (2013: 0). Two contractor employees

lost their lives in an incident at AGA Mineração’s Cuiabá mine during the renovation of the

ventilation shaft when the braking mechanism for a rope holding a suspended platform in

place failed. The AIFR for the region was 3.81 per million hours worked in 2014 (2013: 4.74

– restated).

PERFORMANCE REVIEW

Capital expenditure

In line with the continuing
group-wide cost and strategic
review, capital expenditure of
$394m in the Americas region
for 2014 was 4% less than the
previous year. Of this, $145m
was spent on the MLE project
at CC&V. Additional expenditure
was on ore development and
general stay-in-business
activities at all operations.

REGIONAL REVIEWS continued

Americas

In Brazil, where there was renewed emphasis on safety, the Consequences policy was

launched, which is based on ten key rules that are to be followed by all employees and

contractors. This policy standardises and makes more transparent the recognition of positive

safety behaviour and safe mining practice. This is intended to develop and build on AngloGold

Ashanti’s preventative safety, health and environment policies.

Health

CC&V’s health programme continues to be successful through ongoing noise testing and

monitoring as well as continued dust sampling and training. To ensure a drug- and alcohol-

free workplace, random drug testing continued throughout the year as did third-party post-

accident and reasonable suspicion testing. At Cerro Vanguardia, trainings sessions and

employee medical examinations continued.

In Brazil, along with occupational screening tests, the company continued with the quality of

life programmes, such as Mais Viver (Live More). This programme encourages employees to

eat more healthily (with professional nutritional guidance) and to participate in sport (walking

and running groups have been formed). Preventive campaigns focused on breast and prostate

cancer, and HIV/Aids.

While it is a potential risk at underground operations, silicosis has been eradicated at our Brazilian

operations, a result of mechanisation, improved ventilation, dust suppression, personal preventative

measures and statutory limitations on the length of service of underground employees.

Environment

No signiﬁcant environmental incidents were reported during the year. All the Americas

operations remain ISO 14001-compliant and have been certiﬁed in terms of the international

cyanide management code.

In 2014, the Brazilian operations obtained all relevant licencing for the Cuiába dam-raising and

for the consolidation of the Córrego do Sítio complex. The underground water recirculation

project implemented at the Cuiába mine was among the top ﬁve ﬁnalists among 99 projects

competing for the national prize for Best Practices in Water Management, organised by the

federal government’s National Water Agency (ANA).

Colombia is one of the most bio-diverse countries in the world and there is thus a high level

of environmental awareness and of the need to limit the adverse impact on the environment.

AngloGold Ashanti, recognising this from the start of mineral exploration activities in 2006,

has made every effort to minimise the impact of its activities and to implement any mitigation

plans if necessary. During 2014, there were no reportable environmental incidents (high, major

or extreme) at La Colosa, Gramalote or other explorations areas. Greenﬁelds exploration

drilling was conducted in a manner designed to limit surface disturbance, re-circulate drill

water and restore drilling locations to their pre-existing condition.

INTEGRATED REPORT

2014

Stakeholder engagement and communities

AngloGold Ashanti Colombia ﬁrst “coined” the phrase “social political enablement” in 2013

as a reference point to the necessity of obtaining the critical social acceptance and social

licence to operate its business. Social political enablement spans a broad spectrum of activity

and, in 2014, this activity centred on working closely in those communities that are directly

and indirectly affected by AngloGold Ashanti’s exploration work. Primary delivery consisted

of projects and programmes of social infrastructure, education, support and institutional

strengthening. All of this work was developed in alignment with the communities engaged, with

the support of various levels of government, and it has allowed for the creation of ownership

and sustainability among communities.

CC&V continues to implement its engagement strategy which is primarily focused on creating

and maintaining open communication with communities and stakeholders regarding mining

operations with an emphasis on MLE2.

In Argentina, successful local socio-economic development was undertaken around the Cerro

Vanguardia mine where we have engaged closely with the community of San Julián since the

start of operations more than 20 years ago. This strategy is based on permanent and continuous

dialogue with all local institutions and organisations as well as the local and provincial authorities.

A development agency was established in 2004, a collaboration between the mine, the local and

provincial authorities, the local university, the rural association and the Chamber of Commerce,

which has been ﬁnanced by the mine since its inception. An important achievement in 2014 was

to successfully bring into operation a ﬁsh processing plant, a project that has created new jobs

and opened up the possibility of a very important viable economic activity that does not depend

on mining.

In Brazil, the community strategy is based on projects that promote jobs, generate income, and

improve the quality of health and education in the communities that surround our operations.

The most signiﬁcant challenge is to structure socio-economic projects so that the community

or government, as appropriate, takes ownership of the public infrastructure and services

supplied through community investment. A portfolio of projects is developed to achieve the

wide range of community targets, which include among others, the Supplier Development

Programme; Entrepreneur Award Friend of Sports for the development of and participation

in sporting activities; a volunteer programme that was established in 2004 and which has

beneﬁted about 24,000 people, 51 social institutions and involved the participation of 1,723

volunteers over the past 10 years.

In the Americas, our engagements with the ASM in the Gramalote concession have included

establishing alternative means of livelihoods and creating employment through a co-existence

initiative. As in the Continental Africa region, the aim will be to formalise ASM activities and

promote the use of improved technology for the artisanal extraction of gold, allowing for

higher yields and lower impacts on the environment, as well as the integral development of

the value chain.

PERFORMANCE REVIEW

OUTLOOK

In 2015, attributable production
from the Americas is expected
to be between 1.01Moz and
1.08Moz at a total cash cost of
between $703/oz and $748/oz
(all-in sustaining cost of $957/oz
– $1,005/oz). Capital expenditure
of between $340m and $374m
is expected and will be spent
mostly on the expansion project
at CC&V, ore reserve development
and asset integrity. As in 2014,
cost containment and enhanced
productivity remain priorities.

MINERAL RESOURCE AND ORE RESERVE OVERVIEW

The AngloGold Ashanti Mineral Resource and Ore Reserve are reported in
accordance with the minimum standards described by the Australasian
Code for Reporting of Exploration Results, Mineral Resources and Ore
Reserves (JORC Code, 2012 Edition), and also conform to the standards
set out in the South African Code for the Reporting of Exploration
Results, Mineral Resources and Mineral Reserves (The SAMREC Code,
2007 edition and amended July 2009).

The Mineral Resource is inclusive of the Ore Reserve component unless otherwise stated. In

complying with revisions to the JORC Code, changes to AngloGold Ashanti’s Mineral Resource

and Ore Reserve have been reviewed and it was concluded that none of the changes are

material to the overall valuation of the company. AngloGold Ashanti has therefore once again

resolved not to provide the detailed reporting as deﬁned in Table 1 of the code. The company

will however continue to provide the high level of detail it has in previous years in order to

comply with the transparency requirements of the code.

AngloGold Ashanti strives to actively create value by growing its major asset, the Mineral

Resource and Ore Reserve. This drive is based on active, well-deﬁned brownﬁelds and

greenﬁelds exploration programmes, innovation in both geological modelling and mine

planning, and continual optimisation of its asset portfolio.

GOLD PRICE

The following local prices of gold were used as a basis for estimation in the December 2014

declaration:

Local prices of gold

South Africa

Australia

Brazil

Argentina

$/oz

ZAR/kg

AUD/oz

BRL/oz

ARS/oz

2014 Ore Reserve

1,100

398,452

1,261

2,801

8,979

2014 Mineral Resource

1,600

429,803

1,566

3,184

12,319

The JORC and SAMREC Codes require the use of reasonable economic assumptions.

These include long-range commodity price forecasts which are prepared in-house.

INTEGRATED REPORT

2014

MINERAL RESOURCE

The total Mineral Resource decreased from 233.0Moz in December 2013 to 232.0Moz in

December 2014. A gross annual increase of 8.7Moz occurred before depletion and disposals,

while the net decrease after allowing for depletion and disposals was 1.0Moz. Changes in

economic assumptions from December 2013 to December 2014 resulted in a 6.4Moz decrease

in the Mineral Resource, while exploration and modelling resulted in an increase of 14.4Moz.

Depletion from the Mineral Resource for the year totalled 5.9Moz and the reduction from the

sale of Navachab, 3.8Moz. The Mineral Resource was estimated at a gold price of US$1,600/oz

(2013: US$1,600/oz).

Mineral Resource

Moz

As at 31 December 2013

233.0

Disposal – Navachab

(3.8)

Sub-total

229.2

Depletion

(5.9)

Sub-total

223.3

Additions

Quebradona

Nuevo Chaquiro Maiden Mineral Resource declaration

5.5

La Colosa

Mineral Resource growth due to exploration success

5.1

AGA Mineração

Exploration success at all three operations

2.1

Sunrise Dam

Revisions to the modelling approach

1.6

Siguiri

Hard rock exploration additions from three deposits

1.5

Other

Additions less than 0.5Moz

1.5

Sub-total

240.6

Reductions

Mponeng

Data driven revision to models and Mineral Resource clean up

(3.4)

Kopanang

Mineral Resource clean-up of uneconomic and inaccessible areas

(1.8)

Moab Khotsong

(including Great Noligwa)

Exploration-driven revisions to models

(1.4)

Geita

Increased costs resulting in reduced pit size

(0.9)

Other

Reductions less than 0.5Moz

(1.1)

As at 31 December 2014

Total

232.0

Rounding of numbers may result in computational discrepancies.

PERFORMANCE REVIEW

Attributable Mineral Resource
by region

(Moz)

•

South Africa

85.6

• Continental Africa

64.3

•

Australasia

9.6

•

Americas

72.5

Group Mineral
Resource:

232.0Moz

MINERAL RESOURCE AND ORE RESERVE OVERVIEW continued

ORE RESERVE

The AngloGold Ashanti Ore Reserve reduced from 67.9Moz in December 2013 to 57.5Moz in

December 2014. This gross annual decrease of 10.5Moz includes depletion of 4.9Moz and the

sale of Navachab of 1.9Moz. The remaining reduction of 3.7Moz in the Ore Reserve resulted

from changes to the economic assumptions between 2013 and 2014 which resulted in a

reduction of 3.0Moz to the Ore Reserve, while exploration and modelling changes led to a further

decrease of 0.7Moz. The Ore Reserve has been estimated using a gold price of US$1,100/oz

(2013: US$1,100/oz).

Ore Reserve

Moz

As at 31 December 2013

67.9

Disposal – Navachab

(1.9)

Sub-total

66.1

Depletion

(4.9)

Sub-total

61.1

Additions

Siguiri

Inclusion of fresh rock from the Kami deposit

0.6

Sunrise Dam

Exploration success at Vogue

0.4

Other

Additions less than 0.3Moz

1.0

Sub-total

63.1

Reductions

Obuasi

Initial results of feasibility study

(2.6)

Mponeng

Revisions to the CLR and VCR models due to new exploration and

development data

(1.3)

Moab Khotsong

(including Great Noligwa)

New surface exploration data led to revision of the project Zaaiplaats models

(0.8)

CC&V

Increased costs and reduction in sub marginal ounces

(0.4)

Other

Reductions less than 0.3Moz

(0.5)

As at 31 December 2014

Total

57.5

Rounding of numbers may result in computational discrepancies.

Attributable Ore Reserve –
by region

(Moz)

•

South Africa

27.5

• Continental Africa

18.9

•

Australasia

3.5

•

Americas

7.6

Group Ore
Reserve:

57.5Moz

INTEGRATED REPORT

2014

BY-PRODUCTS

Several by-products are recovered in the processing of the gold Ore Reserve. The AngloGold

Ashanti Ore Reserve includes 55,600t of uranium oxide at the South African operations,

0.32Mt of sulphur in Brazil and 25.1Moz of silver in Argentina.

The maiden publication of the Nuevo Chaquiro Mineral Resource added 3.55Mt of copper,

76.5Moz of silver and 62,908t of molybdenum to the group’s total Mineral Resource.

COMPETENT PERSONS

The information in this report relating to exploration results, Mineral Resources and Ore

Reserves is based on information compiled by or under the supervision of the Competent

Persons as deﬁned in the JORC or SAMREC Codes. All Competent Persons are employed by

AngloGold Ashanti, unless stated otherwise, and have sufﬁcient experience relevant to the style

of mineralisation and type of deposit under consideration and to the activity being undertaking.

The Competent Persons consent to the inclusion of exploration results, Mineral Resource and

Ore Reserve information in this report, in the form and context in which it appears. The legal

tenure of each operation and project has been veriﬁed to the satisfaction of the accountable

Competent Person.

During the past decade, the company has developed and implemented a rigorous system

of internal and external reviews aimed at providing assurance in respect of Ore Reserve and

Mineral Resource estimates. The Mineral Resource and Ore Reserve at the following operations

were subject to an external review, in line with the policy that each operation or project will be

reviewed by an independent third party on average once every three years:

•

Mponeng

•

Moab Khotsong

•

Iduapriem

•

Sunrise Dam

•

Cerro Vanguardia

•

Serra Grande

•

Obuasi

The external reviews were conducted by the following companies: The Mineral Corporation

(Mponeng and Moab Khotsong), Coffey Mining (Iduapriem), Snowden (Sunrise Dam), Optiro

(Cerro Vanguardia and Serra Grande), AMEC (Obuasi – Mineral Resource) and SRK (Obuasi

– Mineral Resource and Ore Reserve). Certiﬁcates of sign-off have been received from all

companies conducting the external reviews to state that the Mineral Resource and/or Ore

Reserve at each operation complies with the JORC Code and the SAMREC Code.

Numerous internal Mineral Resource and Ore Reserve process reviews were completed by

suitably qualiﬁed Competent Persons from within AngloGold Ashanti. A documented chain of

responsibility exists from the Competent Persons at the operation to the company’s Mineral

Resource and Ore Reserve Steering Committee. Accordingly, the Chairman of the AngloGold

Ashanti Mineral Resource and Ore Reserve Steering Committee, VA Chamberlain, MSc

(Mining Engineering), BSc (Hons) (Geology), MGSSA, FAusIMM, assumes responsibility for the

Mineral Resource and Ore Reserve processes for AngloGold Ashanti and is satisﬁed that the

Competent Persons have fulﬁlled their responsibilities.

A detailed breakdown of Mineral Resource and Ore Reserve and backup detail is provided on

the AngloGold Ashanti website, www.anglogoldashanti.com and www.aga-reports.com.

PERFORMANCE REVIEW

“

AngloGold Ashanti

has developed and
implemented a rigorous
system of internal and
external reviews to
provide assurance of
its Mineral Resource
and Ore Reserve
estimates.

”

Mineral Resource by region inclusive of Ore Reserve (attributable)

Tonnes

Grade

Contained gold

As at 31 December 2014

Category

million

g/t

Tonnes

Moz

South Africa

Measured

147.19

2.35

345.91

11.12

Indicated

946.99

1.93

1,829.48

58.82

Inferred

47.34

10.31

487.87

15.69

Total

1,141.52

2.33

2,663.26

85.63

Continental Africa

Measured

79.94

3.07

245.06

7.88

Indicated

419.68

2.59

1,086.73

34.94

Inferred

277.85

2.40

667.86

21.47

Total

777.47

2.57

1,999.66

64.29

Australasia

Measured

31.77

1.43

45.46

1.46

Indicated

83.83

2.25

188.70

6.07

Inferred

23.35

2.73

63.84

2.05

Total

138.95

2.14

298.00

9.58

Americas

Measured

284.50

1.15

326.31

10.49

Indicated

1,195.53

0.94

1,128.97

36.30

Inferred

1,076.04

0.74

799.23

25.70

Total

2,556.07

0.88

2,254.52

72.48

AngloGold Ashanti total

Measured

543.41

1.77

962.74

30.95

Indicated

2,646.03

1.60

4,233.89

136.12

Inferred

1,424.57

1.42

2,018.80

64.91

Total

4,614.01

1.56

7,215.43

231.98

Rounding of ﬁgures may result in computational discrepancies.

MINERAL RESOURCE AND ORE RESERVE OVERVIEW continued

INTEGRATED REPORT

2014

PERFORMANCE REVIEW

Mineral Resource by region exclusive of Ore Reserve (attributable)

Tonnes

Grade

Contained gold

As at 31 December 2014

Category

million

g/t

Tonnes

Moz

South Africa

Measured

15.75

15.17

239.06

7.69

Indicated

251.24

3.49

877.25

28.20

Inferred

13.43

18.32

246.09

7.91

Total

280.43

4.86

1,362.39

43.80

Continental Africa

Measured

36.80

4.89

179.78

5.78

Indicated

215.36

2.58

556.29

17.89

Inferred

276.82

2.39

661.34

21.26

Total

528.97

2.64

1,397.41

44.93

Australasia

Measured

3.50

0.83

2.89

0.09

Indicated

55.33

2.18

120.88

3.89

Inferred

23.35

2.73

63.84

2.05

Total

82.18

2.28

187.62

6.03

Americas

Measured

157.88

1.15

181.18

5.83

Indicated

1,126.20

0.90

1,017.56

32.72

Inferred

1,064.18

0.74

784.22

25.21

Total

2,348.27

0.84

1,982.97

63.75

AngloGold Ashanti total

Measured

213.94

2.82

602.91

19.38

Indicated

1,648.14

1.56

2,571.98

82.69

Inferred

1,377.77

1.27

1,755.49

56.44

Total

3,239.84

1.52

4,930.39

158.52

Ore Reserve by region (attributable)

Tonnes

Grade

Contained gold

As at 31 December 2014

Category

million

g/t

Tonnes

Moz

South Africa

Proved

133.45

0.64

85.20

2.74

Probable

713.99

1.08

768.72

24.71

Total

847.45

1.01

853.92

27.45

Continental Africa

Proved

44.95

1.52

68.12

2.19

Probable

203.84

2.55

520.67

16.74

Total

248.78

2.37

588.79

18.93

Australasia

Proved

28.27

1.51

42.57

1.37

Probable

28.19

2.38

67.09

2.16

Total

56.46

1.94

109.66

3.53

Americas

Proved

124.64

1.01

126.14

4.06

Probable

72.87

1.50

109.03

3.51

Total

197.51

1.19

235.17

7.56

AngloGold Ashanti total

Proved

331.30

0.97

322.03

10.35

Probable

1,018.90

1.44

1,465.51

47.12

Total

1,350.20

1.32

1,787.54

57.47

Rounding of ﬁgures may result in computational discrepancies.

FIVE-YEAR STATISTICS: BY OPERATION

Operational, ﬁnancial and sustainability statistics

Production volumes

Attributable tonnes treated/milled (Mt)

2014

2013

2012

2011

2010

South Africa

38.4

39.2

22.2

16.4

17.1

Vaal River

Great Noligwa

(1)

0.4

0.5

0.7

Kopanang

0.8

1.0

0.9

1.5

1.6

Moab Khotsong

0.7

0.6

0.9

1.0

Tau Lekoa

(2)

0.6

West Wits

Mponeng

1.1

1.6

1.3

1.6

1.8

Savuka

(3)

0.2

0.1

TauTona

(3)

0.9

1.0

0.8

1.0

1.1

Surface Operations

Surface Operations

(4)

34.5

17.9

10.7

10.2

Continental Africa

29.9

26.9

27.8

26.3

25.7

DRC

Kibali (45%)

(5)

2.5

0.4

Ghana

Iduapriem

4.9

4.8

4.6

4.3

3.4

Obuasi

2.2

1.7

2.1

2.0

2.6

Guinea

Siguiri (85%)

10.1

10.2

10.1

9.7

8.8

Mali

Morila (40%)

1.3

1.4

1.8

1.7

Sadiola (41%)

2.1

2.0

1.9

2.0

1.8

Yatela (40%)

0.9

1.0

1.1

1.2

Namibia

Navachab

(6)

0.7

1.4

1.5

Tanzania

Geita

5.2

4.0

4.8

3.9

4.7

Australasia

7.8

4.3

3.4

3.6

Australia

Sunrise Dam

3.8

3.5

3.4

3.6

Tropicana (70%)

(5)

4.0

0.9

Americas

26.1

26.7

25.7

23.6

23.8

Argentina

Cerro Vanguardia (92.5%)

3.0

2.3

1.7

1.0

Brazil

AGA Mineração

2.5

2.3

2.2

1.7

1.6

Serra Grande

(7)

1.3

0.9

0.6

United States

Cripple Creek & Victor

19.3

20.8

20.9

20.3

20.6

AngloGold Ashanti

102.2

97.1

79.1

69.9

70.2

(1)

The process of integrating Great Noligwa into Moab Khotsong began in 2014 and these operations will be treated as one cash-generating unit from
1 January 2015.

(2)

Sold in August 2010.

(3)

In 2013, Savuka and TauTona were combined under TauTona as one cash generating unit.

(4)

For the purposes of this report, Surface Operations includes MWS, which is operated and managed as a separate cash generating unit.

(5)

Kibali and Tropicana began production in the fourth quarter of 2013.

(6)

Sold effective 30 June 2014.

(7)

AngloGold Ashanti’s holding increased to 100% (from 50%) from 1 July 2012.

INTEGRATED REPORT

2014

100

Production volumes (continued)

Average grade recovered (g/t)

Attributable gold production (000oz)

2014

2013

2012

2011

2010

2014

2013

2012

2011

2010

South Africa

1,223

1,302

1,212

1,624

1,785

Vaal River

Great Noligwa

(1)

6.44

6.15

5.72

5.58

5.99

132

Kopanang

5.55

5.23

5.40

6.47

6.13

140

178

164

307

305

Moab Khotsong

11.04

9.47

8.16

9.39

9.03

234

212

162

266

292

Tau Lekoa

(2)

3.32

West Wits

Mponeng

8.99

7.10

9.40

9.71

9.48

313

354

405

500

532

Savuka

(3)

6.09

6.69

5.30

TauTona

(3)

8.21

7.34

7.63

7.55

7.01

232

235

189

244

259

Surface Operations

Surface Operations

(4)

0.20

0.22

0.30

0.48

0.54

223

240

172

164

179

Technology

Technology

Continental Africa

1,597

1,460

1,521

1,570

1,492

DRC

Kibali (45%)

(5)

2.95

3.41

237

Ghana

Iduapriem

1.13

1.43

1.22

1.44

1.70

177

221

180

199

185

Obuasi

(6)

4.67

4.94

4.79