AngloGold Ashanti’s South African operations delivered 4
86,000oz of production at AISC of
$958/oz, a 13% cost reduction from the first six months of last year. Mponeng, the largest of the
local mines, continued its recovery with a 25% jump in output and a 28% reduction in AISC to
$893/oz. Tragically, there were three work-related fatalities at the South African operations during
the period under review, overshadowing safety improvements that have been made across the
balance of the portfolio. The South African operations continue to face significant challenges due
to safety-related stoppages, which have continued throughout the year.
Adjusted headline earnings were $159m, or 39 cents per share in the first half of 2016, compared
with $61m, or 15 cents per share, in the first half of 2015. Net profit attributable to equity
shareholders during the first half of 2016 was $52m compared with a net loss from continuing
operations of $23m a year earlier.
Adjusted earnings before interest, tax, depreciation and amortisation (adjusted EBITDA)
decreased by $12m, or 2% from $793m in the six-month period ended 30 June 2015 to $781m in
the six months ended 30 June 2016. The lower production year-on-year was largely offset by cost
improvements over the same period. The ratio of net debt to adjusted EBITDA at the end of June
2016 was 1.44 times, compared with the 1.47 times recorded at the end March 2016, and 1.95
times at the end of June 2015, highlighting the success of AngloGold Ashanti’s continued efforts to
deleverage and sustainably improve cash flow.
Ends
JSE Sponsor: Deutsche Securities (SA) Proprietary Limited
Contacts
Media
Chris Nthite +27 11 637 6388/+27 83 301 2481 cnthite@anglogoldashanti.com
Stewart Bailey +27 81 032 2563 / +27 11 637 6031 sbailey@anglogoldashanti.com
General inquiries
media@anglogoldashanti.com
Investors
Stewart Bailey +27 81 032 2563/+27 11 637 6031
sbailey@anglogoldashanti.com
Sabrina Brockman +1 212 858 7702/+1 646 379 2555
sbrockman@anglogoldashanti.com
Fundisa Mgidi +27 11 6376763/+27 82 821 5322
fmgidi@anglogoldashanti.com
Forward-Looking Information and Non-GAAP Financial Measures
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, cash costs, all-in sustaining costs, all-in costs, cost savings and other operating results, return on equity, 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 2015, which was 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.