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ANGLOGOLD ASHANTI LIMITED - AngloGold Ashanti Posts Strong Q2 Operating Recovery; Key Projects on Track

Release Date: 08/08/2019 07:06
Code(s): ANG     PDF:  
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AngloGold Ashanti Posts Strong Q2 Operating Recovery; Key Projects on Track

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 “AGA” or the “Company”)

8 August 2019

NEWS RELEASE

AngloGold Ashanti Posts Strong Q2 2019 Operating Recovery; Key Projects on Track

(JOHANNESBURG - PRESS RELEASE) - AngloGold Ashanti achieved strong gains in second quarter production and cash flow, set new safety
records and kept key projects on track. Full-year key operating and cost guidance remained on track, with an especially strong fourth-quarter
anticipated.

Second quarter production increased 7% over the first quarter of 2019, rising to 801,000oz from 752,000oz. Free cash flow for the second quarter
also increased to $78m, compared with an outflow of $109m in the first quarter of 2019. The average gold price received of $1,302/oz was only
$5/ oz higher than in the first quarter of 2019. The price has subsequently averaged about $1,414/oz as of 4 August 2019.

“While we’ve seen a rally in the gold price, this will not diminish our focus on improving free cash flow and returns through active portfolio management
and strict capital discipline,” Kelvin Dushnisky, Chief Executive Officer of AngloGold Ashanti, said “Tight cost management will continue to be a key
driver for us.”

Production in the six months through 30 June 2019 was 1.554Moz at a total cash cost of $792/oz, compared to a production of 1.578Moz at a total
cash cost of $807/oz in the first six months of last year (excluding Moab Khotsong and Kopanang). Production decreases from Sunrise Dam (lower
grade) and Siguiri (lower grades and plant throughput), as well as a planned decrease in production from Cerro Vanguardia were partly offset by
strong improvements from Kibali, Iduapriem, Geita and Tropicana.

AngloGold Ashanti is streamlining its portfolio to ensure greater management focus and to concentrate its capital on projects delivering the highest
returns. The Company has received strong interest for its remaining South African assets. Separate sale processes are underway for its holdings
in the Cerro Vanguardia mine in Argentina and the Sadiola mine in Mali.

Key projects remain on track and within budget. Obuasi remains a strategic priority for the management team and a key area of growth for our
business with work continuing towards meeting a tight schedule of achieving its first gold pour at the end of this year.

The Company achieved four consecutive quarters and a total of 449 days without a fatality, a first in AngloGold Ashanti’s history.

All-in sustaining costs (AISC) for the first half of 2019 improved by 2% year-on-year to $1,002/oz while total cash costs declined by 4% year-on-
year to $792/oz. This reflects a solid performance at Kibali with a higher contribution from the underground mine; improved grade-control at Iduapriem
alongside better metallurgical recoveries at Tropicana; and a streamlined South Africa portfolio, which delivered a $139/oz or 11% improvement in
AISC when compared to the same period last year.

Full-Year Guidance*

The 2019 guidance for key operating metrics, including production, costs and sustaining capital expenditure, is maintained at the previous levels
reported. The growth capital metric has been revised downwards due to the timing of some of the Obuasi capital spend, however the overall Obuasi
project budget remains intact.

Production between 3.25Moz to 3.45Moz.

Total cash costs between $730/oz and $780/oz.

 AISC between $935/oz and $995/oz, assuming average exchange rates against the US Dollar of ZAR 14.00 (South African Rand), BRL 3.65
(Brazilian Real), AUD 0.75 (Australian Dollar) and AP 40.00 (Argentinian Peso), with the Brent crude oil price at $74/bl average for the year; and

Capital expenditure anticipated to be between $850m and $920m.

* Both production and cost estimates assume neither operational or labour interruptions, or power disruptions, nor any changes to asset portfolio
and/or operating mines (and thus do not give effect to any of the contemplated divestitures in South Africa, Argentina and Mali) 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. Accordingly, actual results could
differ from guidance and any deviation may be significant. Please refer to the Risk Factors section in AngloGold Ashanti’s annual report on Form
20-F for the year ended 31 December 2018, filed with the United States Securities and Exchange Commission (SEC).
Ends

Johannesburg

JSE Sponsor: The Standard Bank of South Africa Limited

CONTACTS

Media

Chris Nthite +27 11 637 6388 / +27 83 301 2481
cnthite@anglogoldashanti.com

General inquiries
media@anglogoldashanti.com

Investors

Sabrina Brockman +1 646 880 4526 / +1 646 379 2555
sbrockman@anglogoldashanti.com

Fundisa Mgidi +27 11 637 6763 / +27 82 821 5322
fmgidi@anglogoldashanti.com

Certain statements contained in this document, other than statements of historical fact, including, without limitation, those concerning the economic outlook for the gold mining industry, expectations
regarding gold prices, production, total cash costs, all-in sustaining costs, all-in costs, cost savings and other operating results, productivity improvements, growth prospects and outlook of AngloGold
Ashanti’s operations, individually or in the aggregate, including the achievement of project milestones, commencement and completion of commercial operations of certain of AngloGold Ashanti’s
exploration and production projects and the completion of acquisitions, dispositions or joint venture transactions, AngloGold Ashanti’s liquidity and capital resources and capital expenditures and
the outcome and consequence of any potential or pending litigation or regulatory proceedings or environmental health and safety issues, are forward-looking statements regarding AngloGold
Ashanti’s operations, economic performance and financial condition. These forward-looking statements or forecasts involve known and unknown risks, uncertainties and other factors that may
cause AngloGold Ashanti’s actual results, performance or achievements to differ materially from the anticipated results, performance or achievements expressed or implied in these forward-looking
statements. Although AngloGold Ashanti believes that the expectations reflected in such forward-looking statements and forecasts are reasonable, no assurance can be given that such expectations
will prove to have been correct. Accordingly, results could differ materially from those set out in the forward-looking statements as a result of, among other factors, changes in economic, social and
political and market conditions, the success of business and operating initiatives, changes in the regulatory environment and other government actions, including environmental approvals, fluctuations
in gold prices and exchange rates, the outcome of pending or future litigation proceedings, and business and operational risk management. For a discussion of such risk factors, refer to AngloGold
Ashanti’s annual report on Form 20-F for the year ended 31 December 2018, which has been filed with the United States Securities and Exchange Commission (SEC). These factors are not
necessarily all of the important factors that could cause AngloGold Ashanti’s actual results to differ materially from those expressed in any forward-looking statements. Other unknown or unpredictable
factors could also have material adverse effects on future results. Consequently, readers are cautioned not to place undue reliance on forward-looking statements. AngloGold Ashanti undertakes
no obligation to update publicly or release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated
events, except to the extent required by applicable law. All subsequent written or oral forward-looking statements attributable to AngloGold Ashanti or any person acting on its behalf are qualified
by the cautionary statements herein.

Non-GAAP financial measures

This communication may contain certain “Non-GAAP” financial measures. AngloGold Ashanti utilises certain Non-GAAP performance measures and ratios in managing its business. Non-GAAP
financial measures should be viewed in addition to, and not as an alternative for, the reported operating results or cash flow from operations or any other measures of performance prepared in
accordance with IFRS. In addition, the presentation of these measures may not be comparable to similarly titled measures other companies may use.

Website: www.anglogoldashanti.com

ENDS

Date: 08/08/2019 07:06:00
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