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
(“AngloGold Ashanti” or the “Company”)
20 February 2018
NEWS RELEASE
AngloGold Posts Strong Full-Year Operating Result and Improved Guidance for 2018
(JOHANNESBURG – NEWS RELEASE) - AngloGold Ashanti achieved guidance for the fifth straight
year in 2017 as it achieved a 4% increase in production, progressed the restructuring of its South African
portfolio and advanced its brownfield projects according to plan – all whilst generating $125m in free
cash flow before growth investment. Its outlook for 2018 sees improvements across key metrics and
also a decision to move ahead with redevelopment of its Obuasi Gold Mine in Ghana, subject to
Parliamentary ratification.
Production rose to 3.755Moz at an all-in sustaining cost of $1,054/oz in the 12 months through to
December 31, 2017, from 3.628Moz at $986/oz in the previous year, despite restructuring in South
Africa. Stronger year-on-year operating performance from the International Operations helped to more
than offset a lower output from South Africa, where an agreement was reached to sell the Moab
Khotsong and Kopanang mines, and where TauTona is undergoing an orderly closure process.
“
We delivered a strong production and cost performance, which ultimately funded our reinvestment and
restructuring programme,” Chief Executive Officer Srinivasan Venkatakrishnan said. “In ensuring we
maintain focus on our long-term strategy, our portfolio improvement projects were again executed on
time and on schedule, and we continued to make progress on improving safety.”
The strong operating and financial performance in 2017 has further strengthened the foundation for
AngloGold Ashanti’s future. The slate of high-return projects - all with attractive payback periods - is
expected to deliver higher-margin production, extend lives and improve predictability at key assets.
Production from operations is set to improve in 2018, as are all-in sustaining costs, while capital
expenditure is expected to fall despite the decision to reinvest at Obuasi.
Headline earnings for the year were $27m, or 6 cents per share, compared with $111m, or 27 cents per
share in 2016. Headline earnings for 2017 includes the impact of retrenchment provisions in the South
Africa region of $71m (post-tax) and the provision for silicosis claims of $46m (post-tax). Excluding the
impact of the abnormal items, headline earnings would have increased from $27m to $144m.
BALANCE SHEET
The balance sheet remains robust with strong liquidity and long-dated maturities providing significant
financial flexibility. Adjusted earnings before interest, tax, depreciation and amortisation (Adjusted
EBITDA) of $1,483m in 2017 decreased by $65m, or 4% from the previous year, resulting in a 34%