AngloGold Posts 3rd-Quarter Earnings of $235m; Projects on

AngloGold Posts 3rd-Quarter Earnings of $235m; Projects on Track 
JOHANNESBURG, SOUTH AFRICA -- (Marketwire) -- 11/08/12 --  AngloGold
Ashanti (NYSE: AU) posted adjusted headline earnings of $235m in the
third quarter, during which time it continued to advance its major
growth projects in Australia, the United States and the Democratic
Republic of Congo. 
Overall production in the quarter was primarily affected by labour
unrest in South Africa which led to an unprotected strike which
halted the company's six South African mines for more than a month,
as well as lower-than-anticipated production from the Obuasi mine in
Ghana. The unprotected strike action in South Africa has now been
resolved at all but one of the mines and the decision was taken last
month to cancel the underground development contract at Obuasi to
improve the operation's flexibility. 
In order to maintain its balance sheet flexibility, AngloGold Ashanti
has reduced its capital expenditure budget for this year by $200m to
between $2bn and $2.1bn. The company is also conducting a study of
its corporate costs, focusing on drawing fewer, higher-quality ounces
from its South African mines and reviewing the timing of projects
including the Sadiola Deeps project in Mali and the Mongbwalu project
in the Democratic Republic of Congo.  
"It's been a tough period for the industry here, but we've taken
decisive action on a number of fronts to stay the course," AngloGold
Ashanti Chief Executive Mark Cutifani said. "Our major projects are
on track and we're making the decisions to ensure we maintain a lean,
fit business that will continue delivering strong returns." 
As of November 2, the unprotected strike, which started on September
20 at the Kopanang mine and spread to the balance of the Vaal River
operations and the three West Wits mines on September 25, cost
AngloGold Ashanti about 250,000oz in production lost during the
fourth quarter to the work stoppage and the slow ramp-up of
production, which is complicated by the depth of the mines and the
protracted period of inactivity. While this figure may rise due to
the resumption of the strike at the Mponeng mine on November 3,
concerted efforts are underway to resolve the situation and return
the operations to normality. 
Given the continued work st
oppage at the Mponeng mine and uncertainty
around the timing of a resolution and also the consequent ramp-up of
production, AngloGold Ashanti believes it prudent to only provide
quarterly cost and production guidance once a resolution is reached,
normal work patterns have resumed and there is greater visibility of
future production. 
Third Quarter
 Adjusted headline earnings in the three months to
September 30 were $235m, or 61 US cents a share, compared with $457m,
or 118 US cents the previous year. The decline was due to lower
volumes, a declining gold price, inflationary impact on cash costs
(mainly wage increases in South Africa and the Americas), lower
grades and by-product credits, increased exploration and study costs
and higher financing charges. 
Production during the quarter was 1.03Moz at a total cash cost of
$866/oz, compared with guidance of 1.07Moz to 1.1Moz at
$835/oz-$865/oz. As mentioned above, the result was affected by the
labour unrest in South Africa and also the lower-than-anticipated
production from the Obuasi mine in Ghana. 
A dividend of 50 South African cents a share has been declared,
compared with 100 cents the previous quarter. The dividend is
expected to be at a similar level in the fourth quarter, assuming
that the unprotected strike action is speedily resolved, before
moving back in line with long-term operating and financial
performance in 2013. 
Tragically, four employee fatalities were recorded during the
quarter. The company remains committed to eliminating occupational
injuries at its mines through the continued implementation of its
Project ONE operating model and improvement of safety and risk
management protocols. Success to date is reflected in its all injury
frequency rate, which at 8.2 per million hours worked for the year to
date represents a 17% improvement since 2011. 
About AngloGold Ashanti
 AngloGold Ashanti is a global gold mining
company and the world's third largest gold producer. Headquartered in
Johannesburg, South Africa, AngloGold Ashanti has 20 operations on
four continents and one of the gold industry's most successful
exploration teams which work across both the established and new gold
producing regions of the world. This includes land positions in
Colombia, Egypt, Guinea, Australia and the Solomon Islands, among
others. AngloGold Ashanti employed 61,242 people, including
contractors, in 2011 and produced 4.33Moz of gold, generating $6.6bn
in gold income. Capital expenditure in 2011 amounted to $1.5bn. As at
31 December 2011, AngloGold Ashanti's Ore Reserve totalled 75.6Moz. 
The primary listing of the company's ordinary shares is on the JSE
Limited (JSE). Its ordinary shares are also listed on stock exchanges
in London and Ghana, as well as being quoted in New York in the form
of American Depositary Shares (ADSs), in Australia, in the form of
CHESS Depositary Interests (CDIs) and in Ghana, in the form of
Ghanaian Depositary Shares (GhDSs). 
SPONSOR: UBS South Africa (Pty) Limited 
Certain statements made in this communication, 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 and other operating
results, growth prospects and outlook of AngloGold Ashanti's
operations, individually or in the aggregate, including the
achievement of project milestones, the completion and commencement of
commercial operations of certain of AngloGold Ashanti's exploration
and production projects and the completion of acquisitions and
dispositions, AngloGold Ashanti's liquidity and capital resources and
capital expenditure and the outcome and consequence of any potential
or pending litigation or regulatory proceedings or environmental
issues, are forward-looking statements regarding AngloGold Ashanti's
operations, economic performance and financial condition. These
forward-looking statements 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, political and market conditions, success
of business and operating initiatives, changes in the regulatory
environment and other government actions including environmental
approvals and actions, fluctuations in gold prices and exchange
rates, and business and operational risk management. For a discussion
of certain of these and other factors, refer to AngloGold Ashanti's
annual report for the year ended 31 December 2011, which was
distributed to shareholders on 4 April 2012, the company's 2011
annual report on Form 20-F, which was filed with the Securities and
Exchange Commission in the United States on 23 April 2012 and the
prospectus supplement to the company's prospectus
 dated July 17, 2012
that was filed with the Securities and Exchange Commission on July
25, 2012. 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, stakeholders 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 today's date 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. 
Alan Fine
+27 83 250 0757
Stewart Bailey
+1 646 338 4337/ +27-83-253-2021
Chris Nthite
Stewart Bailey 
(US & SA) 
+1 646 338 4337 
Sabrina Brockman
(US & Canada)
+1 (212) 858 7702 / +1 646 379 2555
Mike Bedford 
(UK & Europe)
+44 779 497 7881 / +44 1225 93 8483 
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