Wrap Text
Market update report for the quarter ended 30 September 2018
AngloGold Ashanti Limited
(Incorporated in the Republic of South Africa)
Reg. No. 1944/017354/06
ISIN. ZAE000043485 – JSE share code: ANG
CUSIP: 035128206 – NYSE share code: AU
JSE Bond Company Code - BIANG
(“AngloGold Ashanti” or the “Company”)
Market update report
for the quarter ended 30 September 2018
Johannesburg, 5 November 2018 - AngloGold Ashanti is pleased to provide an operational update for the quarter ended 30 September 2018.
Detailed financial and operational results are provided on a six-monthly basis i.e. at the end of June and December.
• All-in sustaining costs improve year-on-year by 14%, or $151/oz, to $920/oz
• Production from retained operations steady at 851,000oz in Q3 2018, versus 853,000oz in Q3 2017
• Full-year production expected at top end of guidance, costs trending towards lower end, non-sustaining capex revised downwards
• Strong production and cost improvements from Mponeng, Kibali, Iduapriem and Tropicana
• Total cash costs improve 11% year-on-year to $722/oz
• Free cash flow of $34m, versus $88m in Q3 2017, due mainly to lower gold price and higher working capital
• Net debt decreased by 15% year-on-year to $1.749bn
• Adjusted EBITDA of $355m; net debt/adjusted EBITDA ratio 1.13 times vs 1.49 times in Q3 2017
• New, five-year $1.4bn multi-currency revolving credit facility signed, replacing existing $1bn and Australian dollar RCFs
• Key brownfields projects in International portfolio remain on track to deliver lower-cost ounces
• SA wage agreement reached, labour restructuring complete and several non-core surface businesses sold
• All-injury frequency rate of 4.17 improved 41% year-on-year, no fatalities in Q3
Quarter Nine months
ended ended ended ended
Sep Sep Sep Sep
2018 2017 2018 2017
US dollar / Imperial
Operating review
Gold
Produced - oz (000) 851 997 2,480 2,746
Sold - oz (000) 834 979 2,485 2,769
Produced from retained operations - oz (000) 851 853 2,429 2,371
Financial review
Price received - $/oz 1,202 1,270 1,274 1,245
All-in sustaining costs - $/oz 920 1,071 986 1,071
All-in costs - $/oz 1,002 1,142 1,073 1,143
Total cash costs - $/oz 722 807 788 800
Gross profit - $m 185 205 595 530
Free cash inflow (outflow) - $m 34 88 (17) (73)
Net debt - $m 1,749 2,063 1,749 2,063
Capital expenditure (including equity accounted
investments) - $m 163 251 498 705
$ represents US dollar, unless otherwise stated.
Rounding of figures may result in computational discrepancies.
The financial information on which this market update report is based has not been reviewed and reported on by the Company's external auditors.
Published : 5 November 2018
Quarter 3 2018
September 2018 Market update report - www.AngloGoldAshanti.com
1
Financial and Operating Report
FINANCIAL AND CORPORATE REVIEW
Third quarter overview
AngloGold Ashanti reported a solid third quarter, demonstrating another progressive improvement in performance across its portfolio. Production
from retained operations remained steady year-on-year, as stronger output from Mponeng, in South Africa and a fully-ramped up Kibali, in the
DRC, offset a weaker quarter from both Siguiri, in Guinea and AGA Mineração, in Brazil. Free cash flow generation of $34m was weaker than
the $88m of the third quarter last year, due mainly to the lower gold price and higher working capital. The company remains committed to its
strategy of safely improving cash flows from a simpler, higher quality portfolio, while maintaining a flexible balance sheet. The all-injury frequency
rate for the quarter improved 41% year-on-year to 4.17 per million hours worked, the lowest level in the company’s history, demonstrating
ongoing focus on safety alongside fundamental operating improvements.
AngloGold Ashanti remains on track to at least meet full-year guidance on all metrics, costs are trending towards the lower end of the guided
range and production at the upper end, while capital expenditure guidance has been revised downwards. The company also remains on track
to complete the remaining restructuring of its South African cost base, where it seeks to better match its support infrastructure to the reduced
production base. The slate of brownfields projects, aimed at extending life and improving margins at key assets, remain on track. At Siguiri,
the new plant designed to enable the processing of higher grade, hard rock material, is expected to be fully commissioned by year-end, with
benefits in both costs and production to be seen next year. At Kibali, the underground ramp-up is essentially complete, with underground
mining rates steady and full-year production trending to outperform its full year guidance of 730,000 ounces, on 100% basis. At Obuasi, early
work in establishing the site has progressed, major contracts have been awarded and mobile equipment deliveries have commenced. Capital
expenditure is expected to ramp up during the fourth-quarter, and into next year.
“This is a strong operating result that shows our absolute focus on safety and margins,” Chief Executive Officer Kelvin Dushnisky said. “While
we continue to work on improving efficiencies right across our asset suite, we’re also making steady progress on our projects, which are aimed
at improving the overall quality and life of our portfolio.”
On the exploration front, the company remains committed to resource conversion and increasing the mineral inventory at mine sites, while
progressing greenfields opportunities in strategic areas, to maintain a healthy portfolio over the long term. (See the Exploration Update document
at www.anglogoldashanti.com for an update on both Brownfields and Greenfields exploration programmes.)
Production of 851,000oz for the quarter ended 30 September 2018, represents an increase of 6% compared to the second quarter of 2018,
and a 15% reduction compared to the third quarter of 2017, mainly due to the sale of assets in South Africa.
Production from retained operations for the third quarter of 2018 (excluding the Moab Khotsong, Kopanang and TauTona contribution in the
third quarter of last year), was 851,000oz at a total cash cost of $722/oz, compared with 853,000oz at $743/oz in the prior year. All-in Sustaining
Costs (AISC) for these retained operations were $920/oz, compared with $1,031/oz in the same period last year, an 11% reduction.
Production for the quarter was impacted by lower grades at AGA Mineração, partially offset by a strong performance from Continental Africa.
AISC was $920/oz during the third quarter of 2018, an improvement of $151/oz or 14% compared to the third quarter of 2017 and a $94/oz
improvement from the second quarter of 2018. This performance reflects both lower capital expenditure and improved cash costs, supported
by Operational Excellence interventions and by weaker operating currencies in key jurisdictions, notably Brazil, Argentina, Australia and South
Africa. Total cash costs decreased by 11% to $722/oz, compared to $807/oz for the third quarter of 2017.
As work continues to unlock value across the asset base, the lower contribution from higher-cost South African assets either sold or closed,
as well as the restructuring efforts in the region to match the production base with the support infrastructure, has led to an improvement in
costs. Total cash costs of $894/oz in South Africa during the third quarter of 2018 improved by 25% when compared to the second quarter of
this year and 18% when compared to the third quarter of 2017. AISC of $1,026/oz reflects a 17% improvement from the third quarter of 2017,
highlighting a strong performance at Mponeng with an AISC of $972/oz, a 21% improvement year-on-year.
Free cash inflow was $34m for the third quarter of 2018, compared with $88m in the third quarter of 2017. Free cash flow for the quarter was
affected by the 5% lower gold price received, lower sales volumes year-on-year, and adverse working capital changes, mainly comprising
timing of gold sales, pre-payments and dividends received. These negative factors were partly offset by lower capital expenditure and costs.
Adjusted earnings before interest, tax, depreciation and amortisation (Adjusted EBITDA) declined to $355m for the third quarter of 2018, from
$399m in the third quarter of 2017, due mainly to the lower gold price and fewer ounces sold.
Net debt declined by 15% to $1.749bn at 30 September 2018, from $2.063bn at the same time last year. The balance sheet remains robust,
with liquidity comprising the $1.0bn US dollar RCF undrawn as at 30 September 2018, A$310m undrawn on the A$500m Australian dollar RCF,
approximately R4.98bn available on the R5.65bn South African RCFs and other facilities, and cash and cash equivalents of $336m at
30 September 2018.
The ratio of net debt to Adjusted EBITDA at 30 September 2018 was 1.13 times compared with 1.49 times as at 30 September 2017.
Capital expenditure (including equity accounted investments) decreased by 35% from $251m for the third quarter of 2017 to $163m for the
third quarter of 2018. This decrease was largely due to planned lower capital expenditure across the portfolio, with declines led by Geita, Kibali,
AGA Mineração, and Moab Khotsong, which was sold earlier this year, and also the impact of weaker local currencies.
Total sustaining capital expenditure decreased by 36% to $140m for the quarter, compared to $219m for the third quarter of 2017. Sustaining
capital expenditure is lower year-on-year mainly because some brownfields projects have been completed or are near completion, in addition
to the impact of weaker currencies against the dollar. These projects include the new power plant and underground development at Geita, the
new underground mine at Kibali which is ramping up, and the Mponeng Below 120 Phase 1 project, now in the final stages of completion.
Capital expenditure is expected to increase again in the fourth quarter, relative to the third quarter, in line with past trends due to timing of
investment.
September 2018 Market update report - www.AngloGoldAshanti.com
2
Summary of quarter on prior-year quarter operating and cost variations:
% Variation
Quarter ended Quarter ended current quarter
Particulars 30 September 2018 30 September 2017 vs prior year
quarter
Operating review
Gold
Production (kozs) 851 997 (15)
Production from retained operations (kozs) 851 853 —
Financial review
Gold price received ($/oz) 1,202 1,270 (5)
Total cash costs ($/oz) 722 807 (11)
Corporate & marketing costs ($m) * 18 17 6
Exploration & evaluation costs ($m) 25 29 (14)
All-in sustaining costs ($/oz) ** 920 1,071 (14)
All-in costs ($/oz) ** 1,002 1,142 (12)
Adjusted EBITDA ($m) 355 399 (11)
Cash inflow from operating activities ($m) 214 345 (38)
Cash inflow from operating activities less capital expenditure from 64 128 (50)
subsidiary entities ($m)
Free cash inflow ($m) 34 88 (61)
Free cash inflow excluding SAR redundancies ($m) 43 95 (55)
Capital expenditure including equity accounted investments ($m) 163 251 (35)
* Includes administration and other expenses.
** World Gold Council standard, excludes stockpiles written off.
Guidance for 2018
Guidance Notes
Production (000oz) 3,325 - 3,450 Includes two months production from Moab Khotsong
and Kopanang at ~30koz per month
All-in sustaining costs ($/oz) 990 - 1,060
Costs See economic assumptions below
Total cash costs ($/oz) 770 - 830
Corporate costs ($m) 70 - 80
Overheads
Expensed exploration and study costs ($m) 115 - 125 Including equity accounted joint ventures
Previously $800m - $920m. Reduction due to the
Total ($m) 770 - 860 downward revision of non-sustaining capital
expenditure.
Capex Sustaining capex ($m) 600 - 670
Previously $200m - $250m. Reduction relates mainly
Non-sustaining capex ($m) 170 - 190 to the shift of some Obuasi-related expenditure into
2019.
The 2018 guidance remains on track for all operating metrics, with production expected at the top end of the range and costs trending towards
the lower end of the range. The guidance for non-sustaining capex was revised downwards. Economic assumptions are as follows: ZAR13.17/$,
$/A$0.75, BRL3.67/$, AP29.09/$; Brent $74/bl.
Both production and cost estimates assume neither operational or labour interruptions, or power disruptions, nor further changes to asset
portfolio and/or operating mines and have not been reviewed by our external auditors. Other unknown or unpredictable factors could also have
material adverse effects on our future results and no assurance can be given that any expectations expressed by AngloGold Ashanti will prove
to have been correct. Please refer to the Risk Factors section in AngloGold Ashanti’s annual report on Form 20-F for the year ended
31 December 2017, filed with the United States Securities and Exchange Commission (SEC).
Safety update
There were no fatalities during the third quarter ended 30 September 2018. We remain vigilant and focused on our safe production strategy
and on intensifying our safety practices for a sustainable improvement in this area. The group All-Injury Frequency Rate, the broadest measure
of workplace safety, for the first nine months of the year was 5.16 injuries per million hours worked, from 7.79 in the same period last year, an
improvement of 34%. In the three months through September, the AIFR was 4.17, compared to 7.08 in the third quarter of last year.
September 2018 Market update report - www.AngloGoldAshanti.com
3
Operating Highlights
The Americas region produced 192,000oz at a total cash cost of $607/oz for the third quarter of 2018 compared to 213,000oz at a total cash
cost of $673/oz in the third quarter of 2017. AISC was $817/oz for the third quarter of 2018, compared to $989/oz in the third quarter of 2017.
In Brazil, production was 121,000oz at a total cash cost of $687/oz for the third quarter of 2018, compared to 142,000oz at a total cash cost
of $715/oz in the third quarter of 2017. AISC was $916/oz for the third quarter of 2018, compared to $1,060/oz in the third quarter of 2017.
Production from AngloGold Ashanti Mineração was lower year-on-year, mainly due to lower grades and reduced volumes mined at Cuiabá
and Córrego do Sítio (CdS). At Cuiabá, production was impacted by lower feed grades and changes in the mine plan, while at CdS, output
was impacted by delays in environmental licensing as well variances in the geological model. A daily compliance tracking process has been
implemented to monitor and reduce deviations to the revised plan.
Total cash costs were impacted by lower production and some cost escalations, partially compensated by cost management initiatives, new
shift configurations and favourable exchange rate effects during the quarter.
At Serra Grande, production for the third quarter of 2018 improved to 34,000oz at a total cash cost of $587/oz, compared to 30,000oz at a
total cash cost of $799/oz for the third quarter of 2017. Production is reflective of higher feed grades and recoveries due to improved performance
in crushing, milling and leaching areas. There were temporary delays in receiving an environmental license, waste dump permits and
commencement of operations in the new open pit.
In Argentina, Cerro Vanguardia's production was maintained at 71,000oz, while total cash costs improved by 19%, to $456/oz for the third
quarter of 2018, compared to $566/oz in the third quarter of 2017. Production was impacted by variability in the mining model while higher
tonnes treated were offset by lower tonnes placed in the heap leach. Silver production increased 28% year-on-year, in line with the mine plan.
Total cash costs were 19% lower compared to the third quarter of 2017, mainly as a result of the devaluation of the Argentinian peso against
the US dollar. In addition, favourable efficiencies were derived mainly from lower consumption of the fuel, services and consumables, as well
as lower heap leach costs given fewer tonnages. Unfavourable stockpile movements, caused by lower tonnes mined and higher tonnes treated,
had a negative impact on costs, which was in addition to the inflationary impact on payroll costs.
The Continental Africa region produced 391,000oz at a total cash cost of $718/oz for the third quarter of 2018, compared to 380,000oz at a
total cash cost of $696/oz in the third quarter of 2017. AISC was $834/oz for the third quarter of 2018, compared to $946/oz in the third quarter
of 2017. Production increased due to the increased production at the Kibali mine by 55% and 10% from Iduapriem, more than offsetting the
decrease in production at Siguiri by 35%.
In the DRC, Kibali produced an attributable 101,000oz at a total cash cost of $510/oz for the third quarter of 2018, compared to 65,000oz at
a total cash cost of $781/oz in the third quarter of 2017. Production increased given higher underground tonnage treated and a one-third
increase in overall grades. Total cash cost decreased by 35% mainly due to higher production, partly offset by inflationary increases and the
increased royalties implemented through the new mining code.
Kibali is on track to exceed its production guidance of 730,000oz for the year, as the operation has met or exceeded designed capacity on
throughput, recovery and hoisting capacity. Kibali has also reached an agreement with the Ministry of Finance on the reimbursement of
outstanding TVA (value added tax), which amounts to $218m in total. The agreement allows for $40m to be paid up-front, while the balance
will be settled on an offset basis. The Ministry has also agreed to exempt local goods and services purchased by Kibali, from TVA.
In Ghana, Iduapriem produced 64,000oz at a total cash cost of $827/oz for the third quarter of 2018, compared to 58,000oz at a total cash
cost of $786/oz for the third quarter of 2017. Production increased by 10% as a result of an 8% increase in recovered grade, due to mining of
marginally higher ore-grade areas and higher recovery in the current period. There was also an increase in tonnage treated, due to continued
improvements in plant reliability and utilisation. Total cash costs, however, increased by 5% mainly due to the higher fuel price, and an increase
in mining costs.
At Obuasi the redevelopment project for recommencing operations continues, with the commencement of production on schedule for the end
of next year.
In Tanzania, Geita produced 151,000oz at a total cash cost of $735/oz for the third quarter of 2018, compared to 152,000oz at a total cash
cost of $586/oz in the third quarter of 2017. A 10% increase in recovered grade, due to higher grade ore from Nyankanga Cut 8 pit and continued
improvements in underground operations, was offset by a 10% decrease in tonnes treated mainly as a result of operational challenges
experienced during the period, including unplanned downtime to repair the ball mill end-plate and primary crusher. Total cash costs increased
due to the higher operational underground mining costs relative to open pit, as well as higher stripping costs, elevated fuel prices, inflationary
pressures and the additional royalties and clearance fees.
In Guinea, Siguiri produced 54,000oz at a total cash cost of $823/oz for the third quarter of 2018, compared to 83,000oz at a total cash cost
of $704/oz in the third quarter of 2017. The mine saw a 26% decrease in tonnes treated and lower recoveries due to limited flexibility experienced
during plant stoppages following the integration of the Carbon-In Leach commissioning. Additionally, production was impacted by a 12%
decrease in recovered grade due to treatment of lower-grade stockpiles from the Kozan and Bidini pits, compared to the same period a year
ago when the high-grade Seguelen pit was more prevalent. Total cash costs were higher year-on-year mainly due to the decline in production.
This was partly offset by lower mining activity costs from mining lower volumes and shorter haulage distances, operational excellence initiatives,
and favourable movement in ore stockpiles.
In Mali, Sadiola produced 14,000oz at a total cash cost of $912/oz for the third quarter of 2018, compared to 15,000oz at a total cash cost of
$902/oz in the third quarter of 2017. Production dropped 7% year-on-year primarily due to lower recovered grades. Total cash costs per ounce
produced for the third quarter of 2018 were higher compared to the third quarter of 2017 as a result of greater drawdowns of ore stockpiles.
All-in sustaining costs per ounce sold for the third quarter of 2018 were lower compared to the third quarter of 2017 as a result of lower sustaining
September 2018 Market update report - www.AngloGoldAshanti.com
4
capital expenditures. Mining activity ceased during the second quarter of 2018, while processing of remaining ore stockpiles continued. Morila’s
production was 7,000oz at a total cash cost of $1,180/oz for the third quarter of 2018.
The Australia region produced 148,000oz at a total cash cost of $748/oz for the third quarter of 2018, compared to 143,000oz at a total cash
cost of $825/oz in the third quarter of 2017. AISC for the third quarter of 2018 was $1,082/oz compared to $1,133/oz in the third quarter of
2017.
Production at Sunrise Dam was 61,000oz at a total cash cost of $1,013/oz for the third quarter of 2018, compared to 63,000oz at a total cash
cost of $922/oz during the third quarter of 2017. Production was impacted by 6% lower metallurgical recovery and marginally lower mill
throughput, resulting from anticipated delays to improvements from the ramp-up of the new flotation-fine grind circuit. Commissioning of the
new circuit is now complete, with the High Intensity Grind mill now working to specification, after premature wear issues were addressed.
Higher total cash costs for the period were largely due to the lower gold production.
At Tropicana, production was 87,000oz at a total cash cost of $536/oz for the third quarter of 2018, compared to 80,000oz at a total cash cost
of $686/oz during the third quarter of 2017. Production was boosted by a 5% increase in head grade and a 2% increase in mill throughput.
Installation of the second 6MW ball mill in the Tropicana processing plant has progressed well. Commissioning remains on schedule and is
expected to occur before year end. Increased production and favourable inventory movement contributed to the 22% drop in the total cash
costs for the period.
The South African operations produced 120,000oz at a total cash cost of $894/oz during the third quarter of 2018, compared to 261,000oz
at a total cash cost of $1,088/oz in the third quarter of 2017. Production from retained operations, excluding Moab Khotsong and Kopanang
(both sold) and TauTona (closed), was 3% higher year-on-year, from 117,000oz to 120,000oz.
AISC for the third quarter of 2018 was $1,026/oz, 17% lower compared to $1,240/oz for the third quarter of 2017. Total cash costs decreased
18% year-on-year, from $894/oz in the third quarter of 2018 compared to $1,088/oz in the third quarter of 2017, reflecting the restructuring
efforts in the region and the weaker rand relative to the dollar.
Production at Mponeng was up 25% year-on-year, mainly due to higher in-situ reef grade and improved mining practices. Total cash costs
were 17% lower than the same period a year ago. This strong performance at Mponeng was slightly offset by a weaker operating performance
at the Surface Operations which were negatively impacted by volume processed and recoveries (attributed to volume mined from base of
reclaimed TSF). These issues have been systematically addressed and it is expected that recovery improvements will show by the end of the
year.
The Kareerand Tailings Storage Facility expansion, to allow for treatment of tailings in the retained Vaal River operations, is undergoing a
feasibility study expected to be submitted for review in March 2019.
At Mine Waste Solutions, the AachenTM high shear reactor technology for the refractory portion of the feedstock was commissioned in October
and is expected to help to improve recoveries.
CORPORATE UPDATE
Update on wage negotiations in South Africa
AngloGold Ashanti in South Africa reached a three-year wage agreement with all its trade unions, effective from July 2018. The wage agreement
includes wage increases over three years as well as a new shift arrangement with all employee trade unions. The unions are Association of
Mining and Construction Union (AMCU), which represents 48.9% of AngloGold Ashanti’s workforce in South Africa, Solidarity, which represents
3.7% and the UASA Union, which represents 9.4% as well as the National Union of Mineworkers, which represents 32.8%. All employees in
the South Africa region are covered in the signed agreement, including the rest of the employees not affiliated to any trade union, who fall into
the worker categories according to the agreement.
Mponeng reached a new shift arrangement agreement with all the trade unions as part of the safe production strategy to ensure safe work
places and practices and it is expected to result in an improvement in face time and increased operational efficiency. We view the agreement
as an important step in the process to improve productivity and the resulting improvement in remuneration for our employees - particularly
those at the entry level - while providing certainty for three years, as we work to return the South African operations to profitability.
For further details on the agreement see the announcement the Company made on 17 September 2018 on: https://www.anglogoldashanti.com/
investors/announcements/.
Restructuring of the South African Portfolio
The restructuring of the asset portfolio continues in South Africa, focused on protecting the longer-term sustainability of the business by ensuring
that both on- and off-mine cost structures are appropriate for the significantly smaller production base. The Section 189 consultation process,
which envisaged the reduction of about 2,000 jobs from the South African workforce, is complete, with forced job losses mitigated by the sale
of some assets, including healthcare facilities and rail networks in the Vaal River region, and the acceptance of voluntary severance packages
by some employees, resulting in a lower number of forced retrenchments, which will be less than 200 in total, with a further 942 Voluntary
Separations (VSP), and the balance representing the success in securing job loss avoidance measures.
Debt refinance
At the end of October 2018, AngloGold Ashanti signed a new 5-year Revolving Credit Facility (RCF), with a syndicate of 14 banks. The new
RCF is for an amount of US$1.4bn and is a multi-currency facility, allowing for a drawing in A$ in addition to US$, up to a maximum of A$500m.
This new single facility replaces the US$1bn RCF and A$500m RCF put in place in 2014.
September 2018 Market update report - www.AngloGoldAshanti.com
5
Changes to Board of Directors
In compliance with paragraph 3.59 of the Listings Requirements of the JSE Limited, on 22 August 2018, AngloGold Ashanti announced the
appointment of Alan Ferguson and Jochen Tilk as independent non-executive directors to its board of directors, with effect from1 October 2018
and 1 January 2019, respectively.
PROJECTS UPDATES
Kibali
The Kibali project is now complete with underground mining fully operational. The last major work was on the Azambi hydropower plant which
has been completed and the plant was commissioned in September 2018. Construction work for the next phase of the tailings storage facility,
which was initiated at the end of 2017, is on schedule for completion during the fourth quarter of 2018.
Obuasi
Following receipt of all the requisite Government and environmental approvals in June 2018, redevelopment of the Obuasi high-grade orebody
has started in earnest. Establishment of the project and operating teams is progressing. Detailed design continued and is focused on process
plant critical path procurement and contracts. The contract for demolition of redundant plant has been awarded. Detailed plant refurbishment
planning commenced. Orders for the underground mining fleet were placed and delivery has commenced. The underground mining contract
was awarded in late October to African Mining Alliance LTD, a 70/30 Joint Venture between AUMS and Rocksure International. Preparatory
underground works commenced to facilitate a timely start by the underground contractor. Operational readiness activities commenced with
the design of the mine operating systems. The project is being developed in 2 stages. The first is to achieve production at 2,000tpd with first
gold at the end of 2019. The second phase is to achieve production at 4,000tpd by end 2020.
In terms of the original Obuasi project announcement in February 2018, initial project capital of $450-500m was expected to be spent for the
period until the end of 2020. The additional mining fleet purchase will now add around $45m to the project capital estimate, but is expected to
have a resultant favourable impact on contract rates over the period of the contract and is estimated to improve AISC by approximately $25/ oz.
Given the timing of permit approvals earlier this year, some capital expenditure has moved into 2020. The latest outlook on the spend profile
is 15% - 55% - 30% over the period 2018 through 2020. Production is scheduled to start at the end of next year.
Sadiola Sulphide Project
Agreement with the Government of Mali, on the terms for investment in the Sadiola Sulphide Project, is needed to prevent the mine being
placed on suspended exploitation (care and maintenance), once processing of the stockpiles is complete midway through next year. While
this agreement has not yet been reached, AngloGold Ashanti and IAMGOLD, who collectively own an 82% interest in Sadiola, have initiated
a process to identify third parties that may be interested in acquiring their collective interests in Sadiola. The process is at a very preliminary
stage and there is no certainty of its outcome.
Mponeng Project
Phase 1 and 2
The fatal accident in April at 126 level, impacted on the Ore Reserve Development (ORD) and some of the construction activities. The water
management infrastructure construction is currently behind schedule with the piping installation still outstanding. Construction of ore-handling
infrastructure is complete. Progress on ORD at 126 level also encountered areas with a high geological complexity, which required additional
secondary support, slowing advance rates.
The reef pass between 123 and 126 level has also been delayed due to contractor non-performance. A replacement contractor has been
secured.
Geita Power Plant
The construction of a $43m power plant at our Geita mine has been completed, with the new 40Mw facility producing its first electricity in
August 2018. The world-class plant, built to support the mine’s operations over the long-term, will play a key role in ensuring stable, reliable
energy supply for mining and processing activities at Geita mine. This will not only ensure stable operations for the Geita mine, but also provide
a stable source of power for the extension of the life of the mine. The new energy generating capability is expected to be more efficient with
lower operational and maintenance costs.
Siguiri Combination Project
The Siguiri Combination Project is nearing completion with commissioning of the various phases of construction underway. The combination
plant aims to treat hard and soft ore to optimise efficiencies of the current plant. The current circuit is designed to treat soft oxide which is
currently depleting.
The combination project comprises a crushing plant, milling circuit, Carbon-in-Leach (CIL) plant, an upgrade of the elution circuit and a new
power plant to meet the demands of additional power requirements. The project is at an advanced stage and nearing completion in its execution.
The trash screen and the CIL tanks were commissioned in August, enabling the plant to process transitional material. Additionally, the main
tower crane as well as several belts within the current plant have been completed and commissioned.
Construction of the new mill is complete, which includes the mill feed structure, the cyclone cluster and other elements. The final conveyor
structures have also been installed and the necessary Electrification and Instrumentation (E&I) work for quality assurance purposes is underway.
At the power plant, the necessary performance testing of the new Wartsila engines to determine the readiness of the plant has taken place
and it is expected that the plant will shortly be handed-over by the contractor.
September 2018 Market update report - www.AngloGoldAshanti.com
6
Operations at a glance
for the quarters ended 30 September 2018, 30 June 2018 and 30 September 2017
Underground milled / Underground Recovered
Production treated Surface milled / treated Open-pit treated grade Surface Recovered grade Open-pit Recovered grade
oz (000) 000 tonnes 000 tonnes 000 tonnes g/tonne g/tonne g/tonne
Sep-18 Jun-18 Sep-17 Sep-18 Jun-18 Sep-17 Sep-18 Jun-18 Sep-17 Sep-18 Jun-18 Sep-17 Sep-18 Jun-18 Sep-17 Sep-18 Jun-18 Sep-17 Sep-18 Jun-18 Sep-17
SOUTH AFRICA 120 100 261 277 232 933 8,453 8,624 9,421 — — — 8.77 7.58 6.89 0.15 0.16 0.17 — — —
Vaal River Operations — — 114 — — 489 — — — — — — — — 7.24 — — — — — —
Kopanang — — 30 — — 176 — — — — — — — — 5.32 — — — — — —
Moab Khotsong — — 84 — — 313 — — — — — — — — 8.32 — — — — — —
West Wits Operations 79 57 93 277 232 432 50 59 — — — — 8.77 7.58 6.67 0.61 0.38 — — — —
Mponeng 79 57 63 277 232 289 50 59 — — — — 8.77 7.58 6.77 0.61 0.38 — — — —
TauTona — — 30 — — 143 — — — — — — — — 6.46 — — — — — —
Total Surface Operations 40 43 51 — — — 8,403 8,565 9,421 — — — — — — 0.15 0.15 0.17 — — —
First Uranium SA 24 26 30 — — — 6,740 6,691 7,087 — — — — — — 0.11 0.12 0.13 — — —
Surface Operations 16 17 21 — — — 1,663 1,873 2,335 — — — — — — 0.30 0.28 0.28 — — —
Other — — 4 — — 11 — — — — — — — — — — — — — — —
INTERNATIONAL OPERATIONS 731 705 736 2,359 2,339 2,084 — — — 7,751 8,287 8,851 4.00 3.80 3.78 — — — 1.67 1.51 1.62
CONTINENTAL AFRICA 391 380 380 675 684 341 — — — 5,814 6,443 6,885 5.58 5.44 5.59 — — — 1.45 1.26 1.44
DRC
Kibali - Attr. 45% 101 91 65 346 324 193 — — — 617 603 635 6.38 5.98 6.42 — — — 1.52 1.47 1.24
Ghana
Iduapriem 64 69 58 — — — — — — 1,341 1,373 1,306 — — — — — — 1.48 1.56 1.37
Obuasi — — — — — — — — — — — — — — — — — — — — —
Guinea
Siguiri - Attr. 85% 54 68 83 — — — — — — 1,926 2,370 2,611 — — — — — — 0.87 0.89 0.99
Mali
Morila - Attr. 40% 7 7 6 — — — — — — 470 534 566 — — — — — — 0.50 0.42 0.35
Sadiola - Attr. 41% 14 15 15 — — — — — — 523 538 514 — — — — — — 0.85 0.90 0.92
Tanzania
Geita 151 130 152 329 360 149 — — — 937 1,026 1,253 4.73 4.96 4.52 — — — 3.35 2.21 3.25
AUSTRALASIA 148 145 143 698 745 713 — — — 1,702 1,621 1,672 2.34 2.27 2.21 — — — 1.74 1.75 1.71
Australia
Sunrise Dam 61 66 63 698 745 713 — — — 309 264 313 2.34 2.27 2.21 — — — 0.82 1.33 1.24
Tropicana - Attr. 70% 87 80 80 — — — — — — 1,393 1,357 1,359 — — — — — — 1.95 1.83 1.82
AMERICAS 192 180 213 986 911 1,030 — — — 235 222 294 4.09 3.82 4.27 — — — 6.64 6.93 5.41
Argentina
Cerro Vanguardia - Attr. 92.50% 71 75 71 79 89 76 — — — 234 207 224 5.76 6.75 7.03 — — — 6.65 7.32 6.20
Brazil
AngloGold Ashanti Mineração 87 82 112 630 584 665 — — — — — — 3.98 3.73 4.73 — — — — — —
Serra Grande 34 23 30 276 237 289 — — — 1 15 70 3.87 2.95 2.49 — — — 3.13 1.52 2.88
Total 851 805 997 2,636 2,571 3,017 8,453 8,624 9,421 7,751 8,287 8,851 4.50 4.14 4.74 0.15 0.16 0.17 1.67 1.51 1.62
September 2018 Market update report - www.AngloGoldAshanti.com
7
Operations at a glance (continued)
for the quarters ended 30 September 2018, 30 June 2018 and 30 September 2017
Sustaining ORD / Stripping
Total cash costs All-in sustaining costs capex Other sustaining capex Non sustaining capex Gross profit (loss)
$/oz $/oz $m $m $m $m
Sep-18 Jun-18 Sep-17 Sep-18 Jun-18 Sep-17 Sep-18 Jun-18 Sep-17 Sep-18 Jun-18 Sep-17 Sep-18 Jun-18 Sep-17 Sep-18 Jun-18 Sep-17
SOUTH AFRICA 894 1,186 1,088 1,026 1,327 1,240 9 9 20 5 5 10 1 1 4 27 (15) (8)
Vaal River Operations — — 942 — — 1,088 — — 9 — — 3 — — — — (1) 17
Kopanang — — 1,459 — — 1,545 — — — — — — — — — — (1) (8)
Moab Khotsong — — 757 — — 921 — — 9 — — 3 — — — — — 25
West Wits Operations 812 1,248 1,337 972 1,413 1,532 9 9 11 3 2 3 1 1 4 18 (9) (23)
Mponeng 811 1,231 972 972 1,413 1,227 9 9 11 3 2 3 1 1 4 18 (9) 3
TauTona — — 2,109 — — 2,174 — — — — — — — — — — — (26)
Total Surface Operations 1,060 1,102 963 1,136 1,197 1,041 — — — 2 3 4 — — — 8 (5) (2)
First Uranium SA 819 875 799 908 990 884 — — — 2 3 2 — — — 13 (2) (4)
Surface Operations 1,424 1,444 1,195 1,481 1,512 1,273 — — — — 1 2 — — — (5) (3) 1
Other — — — — — — — — — — — — — — — — — —
INTERNATIONAL OPERATIONS 695 772 714 879 950 996 65 63 85 60 53 101 22 33 28 193 206 214
CONTINENTAL AFRICA 718 794 696 834 917 946 19 18 37 18 21 46 22 33 27 98 101 111
DRC
Kibali - Attr. 45% 510 643 781 626 814 1,112 1 3 7 10 12 14 2 4 9 32 23 2
Ghana
Iduapriem 827 749 786 977 899 1,014 8 9 9 2 1 2 — — — 16 31 20
Obuasi — — — — — — — — — — — — 4 3 — 2 — —
Guinea
Siguiri - Attr. 85% 823 766 704 874 724 789 — — — 1 (1) 4 14 22 15 15 28 33
Mali
Morila - Attr. 40% 1,180 1,131 1,024 1,294 1,529 1,163 — — — — 1 — — — — (1) (1) —
Sadiola - Attr. 41% 912 1,010 902 1,009 1,090 1,028 — — — — — 1 — — 1 1 2 3
Tanzania
Geita 735 890 586 877 1,049 915 10 6 21 6 7 24 — — — 31 13 47
Non-controlling interests, exploration and other — — — — 1 1 2 4 2 3 5 5
AUSTRALASIA 748 843 825 1,082 1,084 1,133 22 17 16 21 20 24 — — — 26 37 34
Australia
Sunrise Dam 1,013 1,029 922 1,412 1,307 1,254 9 7 7 13 13 14 — — — (1) 10 14
Tropicana - Attr. 70% 536 650 686 804 852 951 13 10 9 8 7 10 — — — 31 32 27
Exploration and other — — — — — — — — — (4) (5) (7)
AMERICAS 607 667 673 817 916 989 24 28 32 21 12 31 — — 1 69 68 70
Argentina
Cerro Vanguardia - Attr. 92.50% 456 443 566 627 621 821 6 8 12 2 1 5 — — — 35 47 31
Brazil
AngloGold Ashanti Mineração 727 820 692 924 1,094 1,027 14 13 13 8 9 21 — — 1 21 17 34
Serra Grande 587 847 799 896 1,298 1,183 4 6 6 7 2 4 — — — 9 (1) 4
Non-controlling interests, exploration and other — 1 1 4 1 1 — — — 4 5 1
Sub-total 722 815 807 920 1,014 1,071 74 72 105 65 58 111 23 34 32
OTHER — — — 1 1 3 — — — (3) 10 4
Total 74 72 105 66 59 114 23 34 32 217 201 210
Equity accounted investments included above (32) (24) (5)
Total 185 177 205
September 2018 Market update report - www.AngloGoldAshanti.com
8
Development Sampling
for the quarter ended 30 September 2018
Development values represent actual results of sampling, no allowances having been made for adjustments necessary in estimating Ore
Reserves.
Statistics are shown in metric units Advanced Sampled
metres Sampled Avg. ore body gold
(total)* metres thickness (cm) Avg. g/t Avg. cm.g/t
SOUTH AFRICA
WEST WITS
Mponeng
Ventersdorp Contact reef 2,077 406 39.20 50.28 1,971
CONTINENTAL AFRICA
Geita 3,535 1,136 3.20 5.03 —
SOUTH AMERICA
AngloGold Ashanti Mineração
Mina de Cuiabá 2,412 1,281 0.80 3.65 —
Lamego 1,179 617 60.00 2.96 —
Córrego do Sitio Mina I 2,556 434 — 3.24 —
CVSA
Cerro Vanguardia 2,207 985 400.00 3.10 —
Statistics are shown in imperial units Advanced Sampled
feet Sampled Avg. ore body gold
(total)* feet thickness (inches) Avg. oz/t Avg. ft.oz/t
SOUTH AFRICA
WEST WITS
Mponeng
Ventersdorp Contact reef 6,814 1,332 15.43 1.47 1.89
CONTINENTAL AFRICA
Geita 11,599 3,728 1.26 0.15 —
SOUTH AMERICA
AngloGold Ashanti Mineração
Mina de Cuiabá 7,912 4,203 0.31 0.11 —
Lamego 3,867 2,023 23.62 0.09 —
Córrego do Sitio Mina I 8,384 1,425 — 0.09 —
CVSA
Cerro Vanguardia 7,242 3,231 157.48 0.09 —
* This includes total "on-reef" and "off-reef" development metres
September 2018 Market update report - www.AngloGoldAshanti.com
9
Administration and corporate information
AngloGold Ashanti Limited Directors Share Registrars
Executive
Registration No. 1944/017354/06 KPM Dushnisky§ (Chief Executive Officer) South Africa
Computershare Investor Services (Pty) Limited
Incorporated in the Republic of South Africa KC Ramon^ (Chief Financial Officer) Rosebank Towers, 15 Biermann Avenue,
Rosebank, 2196
Share codes: Non-Executive (PO Box 61051, Marshalltown 2107)
South Africa
ISIN: ZAE000043485 SM Pityana^ (Chairman) Telephone: 0861 100 950 (in SA)
JSE: ANG AM Ferguson* Fax: +27 11 688 5218
NYSE: AU AH Garner# Website : queries@computershare.co.za
ASX: AGG R Gasant^ Australia
GhSE: (Shares) AGA DL Hodgson^ Computershare Investor Services Pty Limited
GhSE: (GhDS) AAD NP January-Bardill^ Level 11, 172 St George's Terrace
MJ Kirkwood* Perth, WA 6000
(GPO Box D182 Perth, WA 6840)
MDC Richter# Australia
JSE Sponsor: RJ Ruston~ Telephone: +61 8 9323 2000
Deutsche Securities (SA) Proprietary Limited Telephone: 1300 55 2949 (Australia only)
Fax: +61 8 9323 2033
* British § Canadian #
American
Auditors: Ernst & Young Inc. ~ Australian ^South African Ghana
NTHC Limited
Offices Officers Martco House
Off Kwame Nkrumah Avenue
Registered and Corporate Executive Vice President – Legal, Commercial and PO Box K1A 9563 Airport
76 Rahima Moosa Street Governance and Company Secretary: Accra
Newtown 2001 ME Sanz Perez Ghana
Telephone: +233 302 235814/6
(PO Box 62117, Marshalltown 2107) Fax: +233 302 229975
South Africa Investor Relations contacts
Telephone: +27 11 637 6000 Stewart Bailey ADR Depositary
Fax: +27 11 637 6624 Telephone: +27 11 637 6031 BNY Mellon (BoNY)
Mobile: +27 81 032 2563 BNY Shareowner Services
PO Box 30170
Australia E-mail: sbailey@anglogoldashanti.com College Station, TX 77842-3170
Level 13, St Martins Tower United States of America
Fundisa Mgidi Telephone: +1 866-244-4140 (Toll free in USA) or
44 St George's Terrace +1 201 680 6825 (outside USA)
Perth, WA 6000 Telephone: +27 11 637 6763 E-mail: shrrelations@cpushareownerservices.com
(PO Box Z5046, Perth WA 6831) Mobile: +27 82 821 5322 Website: www.mybnymdr.com
Australia E-mail: fmgidi@anglogoldashanti.com
Global BuyDIRECTSM
Telephone: +61 8 9425 4602 BoNY maintains a direct share purchase and dividend
Fax: +61 8 9425 4662 Sabrina Brockman reinvestment plan for ANGLOGOLD ASHANTI.
Telephone: +1 646 880 4526 Telephone: +1-888-BNY-ADRS
Ghana Mobile: +1 646 379 2555
Gold House E-mail: sbrockman@anglogoldashantina.com
Patrice Lumumba Road
(PO Box 2665) General e-mail enquiries
Accra Investors@anglogoldashanti.com
Ghana
Telephone: +233 303 773400 AngloGold Ashanti website
Fax: +233 303 778155 www.anglogoldashanti.com
Company secretarial e-mail
Companysecretary@anglogoldashanti.com
AngloGold Ashanti posts information that is important to
investors on the main page of its website at
www.anglogoldashanti.com and under the “Investors” tab
on the main page. This information is updated regularly.
Investors should visit this website to obtain important
information about AngloGold Ashanti.
PUBLISHED BY ANGLOGOLD ASHANTI
Forward-looking statements
Certain statements contained in this document, other than statements of historical fact, including, without limitation, those concerning the economic outlook for the gold mining industry,
expectations regarding gold prices, production, total cash costs, all-in sustaining costs, all-in costs, cost savings and other operating results, productivity improvements, growth prospects
and outlook of AngloGold Ashanti’s operations, individually or in the aggregate, including the achievement of project milestones, commencement and completion of commercial
operations of certain of AngloGold Ashanti’s exploration and production projects and the completion of acquisitions, dispositions or joint venture transactions, AngloGold Ashanti’s
liquidity and capital resources and capital expenditures and the outcome and consequence of any potential or pending litigation or regulatory proceedings or environmental health and
safety issues, are forward-looking statements regarding AngloGold Ashanti’s operations, economic performance and financial condition. These forward-looking statements or forecasts
involve known and unknown risks, uncertainties and other factors that may cause AngloGold Ashanti’s actual results, performance or achievements to differ materially from the anticipated
results, performance or achievements expressed or implied in these forward-looking statements. Although AngloGold Ashanti believes that the expectations reflected in such forward-
looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. Accordingly, results could differ materially from those set out in
the forward-looking statements as a result of, among other factors, changes in economic, social and political and market conditions, the success of business and operating initiatives,
changes in the regulatory environment and other government actions, including environmental approvals, fluctuations in gold prices and exchange rates, the outcome of pending or
future litigation proceedings, and business and operational risk management. For a discussion of such risk factors, refer to AngloGold Ashanti’s annual reports on Form 20-F filed with
the United States Securities and Exchange Commission. These factors are not necessarily all of the important factors that could cause AngloGold Ashanti’s actual results to differ
materially from those expressed in any forward-looking statements. Other unknown or unpredictable factors could also have material adverse effects on future results. Consequently,
readers are cautioned not to place undue reliance on forward-looking statements. AngloGold Ashanti undertakes no obligation to update publicly or release any revisions to these
forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events, except to the extent required by applicable law.
All subsequent written or oral forward-looking statements attributable to AngloGold Ashanti or any person acting on its behalf are qualified by the cautionary statements herein.
Non-GAAP financial measures
This communication may contain certain “Non-GAAP” financial measures. AngloGold Ashanti utilises certain Non-GAAP performance measures and ratios in managing its business.
Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the reported operating results or cash flow from operations or any other measures of
performance prepared in accordance with IFRS. In addition, the presentation of these measures may not be comparable to similarly titled measures other companies may use.
September 2018 Market update report - www.AngloGoldAshanti.com
10
Date: 05/11/2018 07:05:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
Sharenet Sites 
