ANGLOGOLD ASHANTI LIMITED: AngloGold Posts 3rd-Quarter Earnings of $235m

ANGLOGOLD ASHANTI LIMITED: AngloGold Posts 3rd-Quarter Earnings of $235m
AngloGold Ashanti Limited 
(Incorporated in the Republic of South Africa \ Reg. No. 1944/017354/06) 
ISIN No. ZAE000043485 - JSE share code: ANG \ CUSIP: 035128206 - NYSE share
code: AU 
News Release 
08 November 2012 
AngloGold Posts 3rd-Quarter Earnings of $235m; Projects on Track 
(ANGLOGOLD ASHANTI) - AngloGold Ashanti 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
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 2 November, the unprotected strike, which started on 20 September at the
Kopanang mine and spread to the balance of the Vaal River operations and the
three West Wits mines on 25 September, 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 3 November, concerted efforts
are underway to resolve the situation and return the operations to normality. 
Given the continued work stoppage 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 30 September 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 
Media                   Tel:                       E-mail:                       
Alan Fine               +27-11 637- 6383 / +27 (0)    
                      83 250 0757                                              
Chris Nthite            +27 (0) 11 637 6388/+27  
                      (0) 83 301 2481                                          
Stewart Bailey          +1 646 338 4337/ +1 212  
                      858-7702 / +27 83 253 2021                               
General inquiries       +27 11 637 6031      
Stewart Bailey          +1 646 338 4337/ +1 212  
                      858-7702 / +27 83 253 2021                               
Sabrina Brockman (US &  +1 (212) 858 7702 / +1 646
Canada)                 379 2555                                                 
Mike Bedford (UK &      +44 779 497 7881 / +44 
Europe)                 1225 93 8483                                             
General inquiries       +27 11 637 6059    
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
expenditures and the outcome and consequence of any potential or pending
litigation or regulatory proceedings or environmental issues, are
forward-looking statements or forecasts 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,
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 17 July
2012 that was filed with the Securities and Exchange Commission on 25 July
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. 
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. AngloGold Ashanti posts
information that is important to investors on the main page of its website at and under the "Investors" tab on the main page. This
information is updated regularly. Investors should visit this website to obtain
important information about AngloGold Ashanti. 
-0- Nov/08/2012 08:27 GMT
Press spacebar to pause and continue. Press esc to stop.