q3 market update presentation final - the vault highest cost debt redeemed using internal ... rcf...

RESULTS FOR THE THREE MONTHSended 30 September 2016

14 NOVEMBER 2016

MARKET UPDATE

Certain statements contained in this document, other than statements of historical fact, including, without limitation, those concerning the economic outlookfor the gold mining industry, expectations regarding gold prices, production, total cash costs, all-in sustaining costs, all-in costs, cost savings and otheroperating results, productivity improvements, growth prospects and outlook of AngloGold Ashanti’s operations, individually or in the aggregate, including theachievement of project milestones, commencement and completion of commercial operations of certain of AngloGold Ashanti’s exploration and productionprojects and the completion of acquisitions, dispositions or joint venture transactions, AngloGold Ashanti’s liquidity and capital resources and capitalexpenditures 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’sactual results, performance or achievements to differ materially from the anticipated results, performance or achievements expressed or implied in theseforward-looking statements. Although AngloGold Ashanti believes that the expectations reflected in such forward-looking statements and forecasts arereasonable, no assurance can be given that such expectations will prove to have been correct. Accordingly, results could differ materially from those set outin the forward-looking statements as a result of, among other factors, changes in economic, social and political and market conditions, the success ofbusiness and operating initiatives, changes in the regulatory environment and other government actions, including environmental approvals, fluctuations ingold 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, which was filed with the United States Securities andExchange Commission (“SEC”). These factors are not necessarily all of the important factors that could cause AngloGold Ashanti’s actual results to differmaterially from those expressed in any forward-looking statements. Other unknown or unpredictable factors could also have material adverse effects onfuture results. Consequently, readers are cautioned not to place undue reliance on forward-looking statements. AngloGold Ashanti undertakes no obligationto update publicly or release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect theoccurrence of unanticipated events, except to the extent required by applicable law. All subsequent written or oral forward-looking statements attributable toAngloGold Ashanti or any person acting on its behalf are qualified by the cautionary statements herein.

The financial information contained in this news release has not been reviewed or reported on by the Company's external auditors.

This communication may contain certain “Non-GAAP” financial measures. AngloGold Ashanti utilises certain Non-GAAP performance measures and ratiosin managing its business. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the reported operating results orcash flow from operations or any other measures of performance prepared in accordance with IFRS. In addition, the presentation of these measures maynot be comparable to similarly titled measures other companies may use. AngloGold Ashanti posts information that is important to investors on the mainpage of its website at www.anglogoldashanti.com and under the “Investors” tab on the main page. This information is updated regularly. Investors shouldvisit this website to obtain important information about AngloGold Ashanti.

DISCLAIMER

SEPTEMBER 2016 MARKET UPDATE 2

POSITIONED TO CREATE VALUE THROUGH THE CYCLE


Focus on sustainable improvements to margins and cash flow

Consistent delivery on targets; improving cost management on key metrics

Decisive action on operations, and improving balance sheet flexibility

Maintaining optionality to deliver value-adding growth

Ongoing portfolio improvements and rationalisation

Working towards zero harm through the elimination of high consequence events

We continue to respond decisively and proactively to the current market conditions, to remain ahead of the curve in volatile times

We continue to respond decisively and proactively to the current market conditions, to remain ahead of the curve in volatile times

SAFETY PERFORMANCE

4SEPTEMBER 2016 MARKET UPDATE

• Four fatalities in Q3 - three in South Africa in July and

one in Brazil in September

• Group Fatal Injury Frequency Rate of 0.07 YTD,

down 16% compared to YE’15 (0.09)

• AIFR in the Continental Africa Region improved by

22% compared to Q2, 2016

• In the South Africa Region:

oVaal River Mines achieved 2 million Fatality Free shifts

oMoab Khotsong achieved one calendar year fatal free

oKopanang achieved 1 million Fatal Free shifts

Focus continues towards reaching zero harm in the workplaceFocus continues towards reaching zero harm in the workplace

7.83

7.487.36

7.18

7.95

8.56

7.60

7.80

6

6.5

7

7.5

8

8.5

9

2012 2013 2014 2015 2016YTD

1Q'16 2Q'16 3Q'160

2

4

6

8

10

12

14

16

18

20

All

inju

ry f

requ

ency

rat

e

Fat

aliti

es

All Injury Frequency Rate and Fatalities

All Injury Frequency Rate Fatalities

1266

1041

994

Q3 2016

Q2 2016

Q1 2016

928

920

723

Q3 2016

Q2 2016

Q1 2016

THIRD QUARTER 2016 – KEY INDICATORS


AISC $/oz

14%of Q3 production

121 kozAustralia

26%of Q3 production

235 kozSouth Africa

37%of Q3 production

333 kozContinental Africa

23%of Q3 production

211 kozAmericas

AISC $/oz

946

881

815

Q3 2016

Q2 2016

Q1 2016

AISC $/oz

1211

995

919

Q3 2016

Q2 2016

Q1 2016

AISC $/oz

*AISC based on World Gold Council standard

HIGHLIGHTS Q3 2016• Free cash flow $161m (before $30m bond premium)

• Net debt improved to $1.972bn

• Production at 900koz at a total cash cost of $797/oz

• All-in sustaining costs* of $1,071/oz

SOUTH AFRICA OPERATIONS OVERVIEW


Good performances from Moab and Mponeng despite safety-related stoppages and slow start after shutdowns

Good performances from Moab and Mponeng despite safety-related stoppages and slow start after shutdowns

*World Gold Council standard

Total cash costsAll-in sustaining costs*

Production koz

Costs $/oz

253 252

236

250

235

Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016

959

776 786 831

997

870

1,211

Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 2016 YTD

1,176

919988 9951,041

• Production and costs negatively affected by• lower grades• safety-related stoppages • costs were also affected by inflationary pressures due

to power and labour cost increases

• Vaal River production• Moab Khotsong up 14% y-on-y; and the lowest-cost

producer for the region at total cash cost of $736/oz

• Kopanang impacted by the fall of ground incident, lack of face length availability and a decrease in grades

• West Wits production• Mponeng up 6% y-on-y, quarter impacted by fewer

safety challenges, partly offset by lower grades

• TauTona most affected by safety-related stoppages

657 619674 665

724688

927995

Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 2016 YTD

702745

625 633665

Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016

INTERNATIONAL OPERATIONS OVERVIEW


Kibali staged a strong recovery from previous quarter. International Ops affected by lower grades y-on-yKibali staged a strong recovery from previous quarter. International Ops affected by lower grades y-on-y


Total cash costsAll-in sustaining costs*

Production koz

Costs $/oz

826786

822

915

• Production down • Obuasi no longer operational and CC&V sold• Lower grades as planned, at both Tropicana and Geita• Kibali impact from H1 sulphide treatment challenges

• Strong recovery at Kibali from the previous quarter

• Production improvement at Iduapriem, Siguiri and Serra Grande

• Costs impacted by lower production, lower grades, inflation and higher capex; AISC up 20% year-on-year

• Australia costs up due to Sunrise Dam’s increased spend in underground mining costs and an additional jumbo. Tropicana’s costs impacted by lower planned grades and a higher drawdown of stockpiles

FOCUS ON MARGINS


We remain focused on margins while we reinvest in the low-capital, high return options within the business

We remain focused on margins while we reinvest in the low-capital, high return options within the business

1597

1312 1341

1170

1017 9931052 1034 1005

920 928 937860 860

962

1071

965

600

800

1000

1200

1400

1600

1800

2000

2200

Q42012

Q12013

Q22013

Q32013

Q42013

Q12014

Q22014

Q32014

Q42014

Q12015

Q22015

Q32015

Q42015

Q12016

Q22016

Q32016

YTD2016

$/o

z

All-in sustaining costs, All-in costs and Average gold price

All-in sustaining costs* Average gold price All-in costs*


COST PERFORMANCE


850

900

950

1,000

1,050

1,100

937 61 10 4 11 40 8 1,071 965

Q3 2015 Cash Cost Rehab and othernon cash cost

Corporate Cost Exploration Cost Sustainingcapex

Inventory andOther

Q3 2016 YTD 2016

All-in sustaining cost $oz soldExcluding Stockpile NRV and other adjustments

600

640

680

720

760

800

840

735 -24 -8 -28 43 56 14 9 797 737

Q3 2015 Exchange By products Efficiency Inflation Volume andgrade

Stockpilesand inventory

Other Q3 2016 YTD 2016

Cash cost $/oz vs prior year quarter

BALANCE SHEET FLEXIBILITY


Highest cost debt redeemed using internal proceeds; ample liquidity, no near-dated maturities, and sufficient covenant headroom

Highest cost debt redeemed using internal proceeds; ample liquidity, no near-dated maturities, and sufficient covenant headroom

Last-12-months adjusted EBITDA ratio based on restated results

Net debt and Net debt to Adjusted EBITDA

1.811.70

1.94 2.02 1.95

1.54 1.49 1.47 1.441.26

1500

2000

2500

3000

3500

0.5

1

1.5

2

2.5

3

3.5

Q22014

Q32014

Q42014

Q12015

Q22015

Q32015

Q42015

Q12016

Q22016

Q32016

Net

deb

t $m

Net

deb

t to

Adj

uste

d E

BIT

DA

Net debt to Adjusted EBITDA Net debt

Covenant: 3.5x

Available facilities*At 30 September 2016

*Total calculated with ZAR facility at R13.71/$ (excluding DMTNP), AUD facility at 0.7654$ to A$

A$210mRCF

R3.4bnRCF

US$820mRCF

US$276mCash

$1.505bn

GUIDANCE

11

Previous

Guidance Updated Guidance

Notes

Production (000oz) 3,600-3,800 3,600 – 3,650Production affected primarily by safety-related stoppages inSouth Africa, which have resulted in losses of about 82,800ozin the first nine months of the year.

Costs

All-in sustaining costs ($/oz) 900 - 960 980 – 1,010 Cost guidance revised primarily due to strengthening of local currencies. Assumptions : ZAR14.60/$, $0.75/A$, BRL3.50/$ and AP14.80/$; Brent $43/bl - All averages for the year; AISC includes group corporate costs. Cost guidance includes the rebate of certain port duties in Argentina.

Total cash costs ($/oz) 680 – 720 730 – 750

Capex Total ($m) 790 – 850 790 – 820 Capital expenditure guidance narrowed.

Full year guidance revised and narrowed; production and capex remains within original guidance

Production and cost estimates assume neither labour interruptions, power disruptions and changes to asset portfolio and/or operating mines. Other unknown or unpredictable factors could also have material adverse effects on our future results.

As in prior years, the fourth quarter earnings will be affected by year-end accounting adjustments including any reassessment of useful lives and carrying value of mining tangible assets, inventory stockpile and investments, reset of environmental rehabilitation provisions, redundancy provisions, and indirect and taxation provisions.

CONCLUSION


• Mixed operating performance

• Strong free cash flow generation

• Deleveraging continued

• Kibali shows signs of improvement

Focus areas

•SA – safety and production

•Continued joint efforts on Kibali

•Cost management

•Invest in long-term of key assets:

Geita, Tropicana, Iduapriem, Sunrise

Dam, Siguiri, Sadiola

•Colombia PFS for reserve declaration

q3 market update presentation final - the vault highest cost debt redeemed using internal ... rcf...

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