AngloGold Annual Earnings* of $924m, Second-Highest Ever

AngloGold Annual Earnings* of $924m, Second-Highest Ever 
JOHANNESBURG, SOUTH AFRICA -- (Marketwire) -- 02/20/13 --  AngloGold
Ashanti (NYSE: AU) today announced full-year adjusted headline
earnings of $924m, the second-highest on record, despite a difficult
year in which an unprotected strike and safety stoppages caused major
disruption to its South African operations.  
The company is planning to deliver higher margin production from its
South African mines, which were shuttered by a strike between the end
of September and the beginning of November. Exploration spending
across the group has been rationalised, corporate and operating costs
are undergoing a review, some assets deemed to be non-core are being
considered for sale and capital expenditure has been prioritised. 
"We've moved decisively to ensure that we continue a strong recovery
from a difficult end to last year," Joint Interim Chief Executive
Officer Tony O'Neill said. O'Neill has oversight of all operating and
exploration functions while fellow joint interim CEO Srinivasan
Venkatakrishnan has accountability for all financial and corporate
AHE for the year was $924m, or 239 US cents a share, which included
about $208m lost to the strike, compared with $1.3bn, or 336 cents a
share in 2011. Production in 2012 was 3.94Moz at a total cash cost of
$862/oz, which included about 235,000oz lost to the strike. The
annual production compares to 4.33Moz at a cash cost of $728/oz in
AngloGold Ashanti continues to seek to improve the quality and
diversity of its portfolio. The main greenfield projects at
Tropicana, in Australia, and the Kibali joint venture, in the
Democratic Republic of Congo, remain on track to produce gold within
a year. The expansion of Cripple Creek & Victor, in the US, also
remains on track. 
Production in 2013 is anticipated to grow to between 4.1Moz and
4.4Moz at an improved total cash cost of $815/oz to $845/oz. More
focused investment in the business has helped AngloGold Ashanti
forecast stable capital expenditure of about $2.1bn for 2013, while
corporate costs are expected to decline by about 18% to $240m.
Expensed spending on exploration and feasibility studies is forecast
at about $377m, 18% lower than in 2012. 
"Our focus is on improving margins and delivering returns, rather
than production growth, and that will continue to drive our decision
making," Venkatakrishnan said. "We have good projects and a solid
financial base." 
During October, the company took a decision to terminate its
underground development contract with Mining and Building Contractors
Limited at its Obuasi mine in Ghana in an effort to improve
production and costs. Geita, in Tanzania, was the group's largest
production contributor, improving annual production by 7% to
531,000oz at a total cash cost of $660/oz. The rest of the group
continued to see positive results with annual production in the
America's region rising from 891,000oz to 953,000oz and the
Australian operations increasing output to 258,000oz from 246,000oz.  
"AngloGold Ashanti continues to deliver the best returns on capital
amongst the gold majors, which reflects strict discipline in capital
deployment over the past five years," Outgoing CEO Mark Cutifani
said. "That's been core to our strategy since early 2008, when we
outlined our vision for the company." 
Fourth Quarter
 Fourth-quarter AHE was $7m, or 2 US cents a share,
compared to $295m, or 76 US cents a share in the fourth quarter of
2011. AHE was affected by the lower volumes and higher cash costs
during the quarter, reflecting the impact of the strike in South
Africa which eroded $208m of earnings and the change-over of the mine
development contractor at Obuasi and other factors which had a
negative impact.  
A strong performance from the Americas region was primarily offset by
the strikes in South Africa. Despite challenges faced in South
Africa, Standard & Poor's affirmed the investment grade rating on
AngloGold Ashanti's publicly traded debt following an extensive
review. Major milestones were reached outside of South Africa, most
notably the termination of the underground development contract at
Obuasi, where sub-par development performance has been identified as
a key constraint to the mine's performance in recent years and which
had also hurt earnings in the fourth quarter. At Tropicana, 1.0Moz
was added to the resource and the group achieved the lowest quarterly
All Injury Frequency Rate (AIFR) on record for the organisation at
6.17 per million hours worked. 
*Adjusted headline earnings 
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 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 or
forecasts. Although AngloGold Ashanti believes that the expectations
reflected in such forward-looking statements or 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, 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. 
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. 
Alan Fine
+27 83 250 0757 
Stewart Bailey
+1 646 338 4337
Chris Nthite
Stewart Bailey (US)
+1 646 338 4337
Sabrina Brockman (US & Canada)
+1 (212) 858 7702
+1 646 379 2555 
Mike Bedford (UK & Europe)
+44 779 497 7881
Fundisa Mgidi (SA)
+27 11 637 6763
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