In addition to the reduced overhead costs and new production, AngloGold Ashanti is also
targeting further reductions in operating costs at its mines, lowering capital expenditure and
the sale of assets that may improve the overall quality of its portfolio.
AngloGold Ashanti also moved to strengthen its balance sheet, improve liquidity and extend
debt maturities by the successful issue last month of $1.25bn in new bonds maturing in
seven years. The proceeds will be used to offer early repayment of the $732.5m convertible
bond that matures in May, while the surplus provides additional liquidity if needed, during the
current volatile market conditions.
The gold price has traded significantly lower this year, with current levels of around
$1,290/oz considerably weaker than about $1,600/oz recorded at the end of 2012.
AngloGold Ashanti posted an adjusted headline loss of $135m during the quarter, which
included the impact of the reduced gold price during the quarter and the consequential write
down of ore stockpiles, necessitated by the lower bullion price, as well as retrenchment
costs.
While these sweeping changes are underway across the company’s portfolio, the company
will maintain its focus on safety. During the second quarter, two employees died in work-
related accidents at AngloGold Ashanti’s West Wits region in South Africa. No fatalities have
been recorded at any other area of the business in 2013 and the Continental Africa region,
comprising eight mines in five countries across the continent, did not record a single lost-
time injury in June 2013.
“While the work to refocus the business continues at a strong pace and in a challenging
environment, our first priority remains to operate safely as we work to deliver value to our
stakeholders,” Venkat said. “We recognise that there remains much room for improvement
and we will continue to look for innovative ways to reach our ultimate goal of zero harm in
the workplace.”
Production in the third quarter is forecast* at 950,000oz to 1Moz at total cash cost of $860/oz
to $890/oz.
JSE Sponsor: UBS South Africa (Pty) Limited
ENDS
*Both cost and production estimates are subject to unfavourable revisions in light of recent labour-
related challenges in South Africa. 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 in the prospectus
supplement to AngloGold Ashanti’s prospectus dated 17 July 2012, that was filed with the Securities
and Exchange Commission (“SEC”) on 26 July 2013 and is available at the SEC’s home page at
http://www.sec.gov.
Contacts
Media
Tel:
E-mail:
Alan Fine
+27-11 637- 6383 / +27 (0) 83 250 0757
afine@anglogoldashanti.com
Chris Nthite
+27 (0) 11 637 6388/+27 (0) 83 301 2481
cnthite@anglogoldashanti.com
Stewart Bailey
+1 646 338 4337/ +1 212 858-7702 / +27 83 253 2021
sbailey@anglogoldashanti.com
General inquiries
media@anglogoldashanti.com
Investors
Stewart Bailey
+1 646 338 4337/ +1 212 858-7702 / +27 83 253 2021
sbailey@anglogoldashanti.com
Sabrina Brockman (US & Canada) +1 212 858 7702 / +1 646 379 2555
sbrockman@anglogoldashanti.com
Mike Bedford (UK & Europe) +44 779 497 7881 / +44 1225 93 8483
mbedford@anglogoldashanti.com
General inquiries
investors@anglogoldashanti.com