Document
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF
THE SECURITIES EXCHANGE ACT OF 1934

Report on Form 6-K dated February 19, 2019

Commission File Number 1-14846

            AngloGold Ashanti Limited           
(Name of registrant)

76 Rahima Moosa Street
Newtown, 2001
(P.O. Box 62117, Marshalltown, 2107)
        South Africa        
(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F X Form 40-F

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):
Yes No X

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):
Yes No X

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
    
Yes No X

Enclosure: Press release ANGLOGOLD ASHANTI REPORT FOR THE SIX MONTHS ENDED 31 DECEMBER 2018



Preliminary Condensed Financial Information for the year ended 31 December 2018 - www.AngloGoldAshanti.com
 
 
1

mastersecjune2017image1a02.jpg
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
JSE Bond Company Code - BIANG
(“AngloGold Ashanti” or "AGA" or the “Company”)

Report
for the six months and year ended 31 December 2018

FULL YEAR REVIEW
•
Key guidance metrics met or exceeded for the sixth consecutive year
•
All-in sustaining costs (AISC) decreased by 7% to $976/oz in 2018 from $1,054/oz in 2017
•
Adjusted EBITDA of $1.48bn despite asset sales and a flat gold price
•
Headline earnings per share increased to 53c in 2018, from 6c in 2017
•
Free cash flow improved significantly to $67m from $1m in 2017
•
Dividend of ZAR 95 cents per share (approximately 7 US cents per share) declared
•
Net debt down 17% to $1.66bn in 2018 from $2bn in 2017 with the Net debt to Adjusted EBITDA ratio lower at 1.12 times
•
Record low All-injury frequency rate (AIFR), down 36% year-on-year to 4.81 per million hours in 2018
•
Obuasi redevelopment initiated following regulatory and fiscal agreements ratified by the Parliament of Ghana
•
Reserve additions at Geita, Sunrise Dam and Cerro Vanguardia; maiden reserve declared at Quebradona in Colombia

SECOND HALF REVIEW
•
Strong operating performance
•
Free cash flow generation of $118m, with $85m generated in the fourth quarter
•
South African restructuring completed, and operations now free cash flow-positive
 
 
 
 
 
 
 
 
 
Six months

Six months

Year

Year

 
 
 
ended

ended

ended

ended

 
 
 
Dec

Dec

Dec

Dec

 
 
 
2018

2017

2018

2017

 
 
 
 
Restated

 
Restated

 
 
 
US Dollar / Imperial
 
Operating review
 
 
 
 
 
 
Gold
 
 
 
 
 
 
Produced
- oz (000)
1,772

2,007

3,400

3,755

 
Sold
- oz (000)
1,761

1,982

3,412

3,772

 
 
 
 
 
 
 
 
Produced from retained operations
- oz (000)
1,772

1,761

3,349

3,279

 
 
 
 
 
 
 
 
Financial review
 
 
 
 
 
 
Gold income
- $m
1,883

2,324

3,805

4,356

 
Cost of sales
- $m
1,571

1,948

3,173

3,736

 
Total cash costs
- $m
1,224

1,525

2,505

2,863

 
Gross profit
- $m
362

459

772

784

 
 
 
 
 
 
 
 
Price received *
- $/oz
1,215

1,270

1,261

1,251

 
All-in sustaining costs *
- $/oz
936

1,038

976

1,054

 
All-in costs *
- $/oz
1,029

1,109

1,068

1,126

 
Total cash costs *
- $/oz
726

787

773

792

 
 
 
 
 
 
 
 
Profit (loss) attributable to equity shareholders
- $m
100

(15
)
133

(191
)
 
 
- cents/share
24

(4
)
32

(46
)
 
Headline earnings
- $m
120

115

220

27

 
 
- cents/share
29

28

53

6

 
Adjusted headline earnings
- $m
128

101

214

9

 
 
- cents/share
31

24

51

2

 
Adjusted EBITDA *
- $m
756

872

1,480

1,483

 
Net cash flow from operating activities
- $m
536

676

857

997

 
Free cash flow *
- $m
118

162

67

1

 
Total borrowings
- $m
2,050

2,268

2,050

2,268

 
Net debt *
- $m
1,659

2,001

1,659

2,001

 
Capital expenditure
- $m
387

499

721

953

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes:  * Refer to "Non-GAAP disclosure" for definition.
 
$ represents US Dollar, unless otherwise stated.
 
 
For restatements refer to note 16.
 
 
Rounding of figures may result in computational discrepancies.

Published : 19 February 2019
December 2018

Preliminary Condensed Financial Information for the year ended 31 December 2018 - www.AngloGoldAshanti.com
 
 
1

Operations at a glance
for the six months ended 31 December 2018
 
Production
Cost of sales
Gross profit (loss)
All-in sustaining costs1
Total cash costs 2
 
oz (000)
Year-on-year
% Variance 3
$m
Year-on-year
% Variance 3
$m
Year-on-year
$m Variance 3
$/oz
Year-on-year
% Variance 3
$/oz
Year-on-year
% Variance 3
SOUTH AFRICA
230

(51
)
(239
)
(58
)
31

6

1,033

(16
)
900

(17
)
Vaal River Operations
—

(100
)
(1
)
(100
)
—

(58
)
—

(100
)
—

(100
)
Kopanang
—

(100
)
(1
)
(99
)
—

11

—

(100
)
—

(100
)
Moab Khotsong
—

(100
)
—

(100
)
—

(69
)
—

(100
)
—

(100
)
West Wits Operations
146

(4
)
(148
)
(39
)
25

75

1,027

(36
)
845

(38
)
Mponeng
146

24

(148
)
2

25

20

1,027

(17
)
837

(15
)
TauTona
—

(100
)
—

(100
)
—

55

—

(100
)
—

(100
)
Total Surface Operations
84

(15
)
(90
)
(15
)
6

(11
)
1,039

(4
)
998

3

 
 
 
 
 
 
 
 
 
 
 
INTERNATIONAL OPERATIONS
1,542

—

(1,558
)
(2
)
407

(52
)
895

(7
)
698

—

 
 
 
 
 
 
 
 
 
 
 
CONTINENTAL AFRICA
817

4

(819
)
6

195

(47
)
874

(7
)
737

2

DRC
 
 
 
 
 
 
 
 
 
 
Kibali - Attr. 45% 4
195

38

(177
)
12

65

45

644

(35
)
515

(27
)
Ghana
 
 
 
 
 
 
 
 
 
 
Iduapriem
128

6

(116
)
2

33

(6
)
1,029

—

826

3

Obuasi
—

(100
)
2

(66
)
2

(4
)
—

—

—

—

Guinea
 
 
 
 
 
 
 
 
 
 
Siguiri - Attr. 85%
115

(31
)
(125
)
(11
)
17

(45
)
1,044

31

896

22

Mali
 
 
 
 
 
 
 
 
 
 
Morila - Attr. 40% 4
15

(6
)
(23
)
15

(4
)
(3
)
1,323

7

1,211

26

Sadiola - Attr. 41% 4
29

(12
)
(30
)
(15
)
5

(2
)
925

(15
)
893

(4
)
Tanzania
 
 
 
 
 
 
 
 
 
 
Geita
335

8

(327
)
16

75

(25
)
875

(7
)
745

15

Non-controlling interests, exploration and other
 
 
(23
)
(11
)
2

(7
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
AUSTRALASIA
319

5

(332
)
10

59

(35
)
1,026

(2
)
735

3

Australia
 
 
 
 
 
 
 
 
 
 
Sunrise Dam
136

4

(161
)
14

4

(25
)
1,331

8

956

10

Tropicana - Attr. 70%
183

5

(161
)
4

64

(5
)
766

(8
)
543

(2
)
Exploration and other
 
 
(9
)
111

(9
)
(5
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
AMERICAS
406

(9
)
(407
)
(22
)
153

30

834

(10
)
589

(10
)
Argentina
 
 
 
 
 
 
 
 
 
 
Cerro Vanguardia - Attr. 92.50%
142

(2
)
(135
)
(23
)
74

16

648

(14
)
463

(16
)
Brazil
 
 
 
 
 
 
 
 
 
 
AngloGold Ashanti Mineração
189

(17
)
(194
)
(22
)
51

3

950

(6
)
687

(1
)
Serra Grande
75

—

(66
)
(18
)
26

11

848

(10
)
556

(18
)
Non-controlling interests, exploration and other
 
 
(12
)
(22
)
2

—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total
1,772

(12
)
 
 
 
 
936

(10
)
726

(8
)
 
 
 
 
 
 
 
 
 
 
 
OTHER
 
 
(4
)
—

(11
)
(10
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1,801
)
(17
)
427

(57
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity accounted investments included above
 
230

8

(65
)
(40
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
AngloGold Ashanti
 
 
(1,571
)
(19
)
362

(97
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1 Refer to note C under "Non-GAAP disclosure" for definition.
 
 
 
 
 
 
 
2 Refer to note D under "Non-GAAP disclosure" for definition.
 
 
 
 
 
 
 
3 Variance December 2018 six months on December 2017 six months - increase (decrease).
 
 
4 Equity accounted joint ventures.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


Preliminary Condensed Financial Information for the year ended 31 December 2018 - www.AngloGoldAshanti.com
 
 
2

Operations at a glance
for the year ended 31 December 2018
 
Production
Cost of sales
Gross profit (loss)
All-in sustaining costs1
Total cash costs 2
 
oz (000)
Year-on-year
% Variance 3
$m
Year-on-year
% Variance 3
$m
Year-on-year
$m Variance 3
$/oz
Year-on-year
% Variance 3
$/oz
Year-on-year
% Variance 3
SOUTH AFRICA
487

(46
)
(590
)
(48
)
21

24

1,178

(5
)
1,033

(5
)
Vaal River Operations
51

(87
)
(77
)
(82
)
—

(65
)
1,452

33

1,304

36

Kopanang
12

(87
)
(29
)
(81
)
(10
)
21

2,115

33

2,002

31

Moab Khotsong
39

(87
)
(48
)
(83
)
10

(86
)
1,247

33

1,083

39

West Wits Operations
265

(16
)
(320
)
(39
)
12

105

1,177

(24
)
983

(25
)
Mponeng
265

18

(320
)
13

12

13

1,177

(7
)
977

(4
)
TauTona
—

(100
)
—

(100
)
—

92

—

(100
)
—

(100
)
Total Surface Operations
171

(11
)
(194
)
(5
)
9

(17
)
1,094

5

1,030

6

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
INTERNATIONAL OPERATIONS
2,913

2

(3,067
)
1

850

52

920

(5
)
731

4

 
 
 
 
 
 
 
 
 
 
 
CONTINENTAL AFRICA
1,512

4

(1,607
)
6

380

(5
)
904

(5
)
773

7

DRC
 
 
 
 
 
 
 
 
 
 
Kibali - Attr. 45% 4
363

35

(373
)
10

96

96

752

(31
)
600

(23
)
Ghana
 
 
 
 
 
 
 
 
 
 
Iduapriem
254

11

(233
)
11

90

15

977

(5
)
804

(2
)
Obuasi
—

(100
)
6

(2
)
6

(4
)
—

—

—

—

Guinea
 
 
 
 
 
 
 
 
 
 
Siguiri - Attr. 85%
242

(25
)
(243
)
(17
)
67

(55
)
930

17

844

17

Mali
 
 
 
 
 
 
 
 
 
 
Morila - Attr. 40% 4
30

7

(42
)
21

(3
)
(3
)
1,321

8

1,145

18

Sadiola - Attr. 41% 4
59

(6
)
(65
)
(2
)
9

(4
)
990

(3
)
938

4

Tanzania
 
 
 
 
 
 
 
 
 
 
Geita
564

5

(612
)
18

105

(41
)
940

—

804

32

Non-controlling interests, exploration and other
 
 
(45
)
(15
)
10

(9
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
AUSTRALASIA
625

12

(622
)
13

160

—

1,038

(2
)
762

3

Australia
 
 
 
 
 
 
 
 
 
 
Sunrise Dam
289

21

(310
)
19

50

7

1,223

2

920

—

Tropicana - Attr. 70%
336

5

(293
)
7

128

(4
)
843

(5
)
594

5

Exploration and other
 
 
(18
)
18

(18
)
(3
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
AMERICAS
776

(8
)
(838
)
(15
)
310

57

855

(9
)
624

(2
)
Argentina
 
 
 
 
 
 
 
 
 
 
Cerro Vanguardia - Attr. 92.50%
282

—

(301
)
(15
)
160

38

652

(15
)
476

(9
)
Brazil
 
 
 
 
 
 
 
 
 
 
AngloGold Ashanti Mineração
364

(14
)
(382
)
(15
)
104

(5
)
973

(3
)
723

8

Serra Grande
130

(2
)
(129
)
(15
)
36

22

945

(14
)
660

(14
)
Non-controlling interests, exploration and other
 
 
(26
)
(16
)
10

2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total
3,400

(9
)
 
 
 
 
976

(7
)
773

(2
)
 
 
 
 
 
 
 
 
 
 
 
OTHER
 
 
4

(31
)
3

1

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(3,653
)
(13
)
874

77

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity accounted investments included above
 
480

9

(102
)
(89
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
AngloGold Ashanti
 
 
(3,173
)
(15
)
772

(12
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1 Refer to note C under "Non-GAAP disclosure" for definition.
 
 
 
 
 
 
 
2 Refer to note D under "Non-GAAP disclosure" for definition.
 
 
 
 
 
 
 
3 Variance December 2018 year on December 2017 year - increase (decrease).
 
 
4 Equity accounted joint ventures.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


Preliminary Condensed Financial Information for the year ended 31 December 2018 - www.AngloGoldAshanti.com
 
 
3

Financial and Operating Report
for the six months and year ended 31 December 2018

CORPORATE AND STRATEGIC REVIEW
AngloGold Ashanti recorded another solid performance in 2018, making steady progress on strategic efforts to improve the quality of its portfolio, strengthen its balance sheet and advance value-enhancing options in its project pipeline. Cash flow and earnings showed steady growth over 2018, and for the sixth consecutive year, production, capital and all cost guidance metrics were met or improved upon.

Cash flow from the business continues to improve. Adjusted EBITDA in 2018 was little changed at $1,480m, versus $1,483m in 2017, as a result of a flat gold price and despite a 355,000oz drop in production following the sale and closure of mines in South Africa. All-in sustaining costs (AISC) of $976/oz in 2018, compared to $1,054/oz in 2017, were lower than the guidance range, continuing the shift towards the bottom end of the industry cost curve. Safety saw another improvement, with the all-injury frequency rate (AIFR) falling 36% to a record 4.81 per million hours worked in 2018, from a rate of 7.49 per million hours worked in 2017.

Restructuring of the South African asset base was completed after a collaborative effort with key stakeholders. Redevelopment of the Obuasi Gold Mine, a transformational project for AngloGold Ashanti and Ghana, also commenced. In addition, the balance sheet was strengthened after debt was further reduced and some revolving credit facilities were refinanced. Furthermore, progress was made on self-funded brownfields projects aimed at sustainably improving mine lives and margins.

Exploration, which remains a cornerstone of the business, delivered another strong result, as the maiden reserve for the Quebradona project in Colombia was registered. The efforts of the exploration programme resulted in added gold ore reserves of 4.3Moz and mineral resource of 4.5Moz for the year ended 31 December 2018.
 
Guidance 2018
Actual 2018
Met / Improved
Production (‘000 oz)
3,325 - 3,450
3,400

þ
Total cash costs ($/oz)
770 - 830
773

þ
All-in sustaining costs ($/oz)
990 - 1,060
976

þ
Capital expenditure ($m)
800 - 920
721

þ

Strategic Priorities
Maintaining a reliable track record of predictable, rational behaviour as custodians of shareholder capital is central to our approach. Capital allocation will remain disciplined and focused on improving value creation without placing financial or operating risk on the business.

This model does not prioritise scale for its own sake, but rather focuses on patient and disciplined work to widen margins, lift returns, increase cash flow and improve direct returns to shareholders over time. Given AngloGold Ashanti’s current valuation and the suite of opportunities available within its existing portfolio and project pipeline, AngloGold Ashanti favours organic opportunities to create value, over those available through acquisition.

Our equity remains an important asset that should be protected while efforts are undertaken to close the considerable valuation gap that exists with global industry peers. Within this framework, we will target returns of at least 15% through the cycle, using conservative discount rates that account for specific jurisdictional and operating risks.

Preserving the integrity of the balance sheet is fundamental to the long-term health of the business and enforces disciplined decision-making in allocating capital. This means that the Company will rank and prioritise its investments, assessing them not only on their returns but also on their affordability with respect to maintaining leverage ratios at or around targeted levels as well as improving returns to its shareholders. Importantly, the Company will weigh these competing priorities and consider the full suite of financing opportunities available when determining whether to proceed with an investment, notably partnerships, asset sales and project financing.

For a gold-producing company such as AngloGold Ashanti, which produces a single, cyclical commodity in an increasingly complex global operating environment, it is our view that over time, lower levels of debt will translate into lower risk and added strategic flexibility. Taking this into account, the Company is now targeting a lower Net debt to Adjusted EBITDA ratio of 1.0 times through the cycle, down from the previous target of 1.5 times. We believe this new target is achievable, even as we invest inward, pay dividends to shareholders subject to approval by the board of directors (Board) and service debt obligations.

Our dividend policy remains to pay out 10% of free cash flow, before growth capital, subject to the approval of the Board. Although currently modest, the dividend policy represents a key element of our capital allocation policy, namely a dividend as a 'royalty' owed to shareholders from the surplus cash generated by the business, before any investment in growth is pursued.

AngloGold Ashanti places a premium on a clear and uncompromising method of allocating capital. This means that certain investments may not be made if the returns they offer rank below other available opportunities within the portfolio. For example, given fiscal uncertainty related to the Sadiola sulphide project, the Company and IAMGOLD Corporation initiated a process last year to identify third parties that may be interested in acquiring their collective interest in Sadiola. In addition, a process to divest the Cerro Vanguardia mine in Argentina (CVSA) is now also underway. As with Mali, Argentina has been an excellent jurisdiction for the Company for almost two decades, but with competing demands for limited capital, another owner may be better placed to invest in extending the life of these assets. Through these processes we aim to achieve both fair value for these assets, and to place them in the hands of buyers with the operational track record and financial capacity to take them forward. If we cannot fulfil these objectives, we will retain these assets.

In South Africa, the difficult but necessary work of restructuring the loss-making portfolio into a smaller business was completed, recently returning these assets to generating free cash flow. To protect the cash flows of the South African region from Rand gold price risk for 2019,

Preliminary Condensed Financial Information for the year ended 31 December 2018 - www.AngloGoldAshanti.com
 
 
4

a short-term Rand gold hedge was entered into on a zero cost collar basis at a floor of R545,000/kg and an average cap of R725,500/kg for 300koz of our South African gold production.

AngloGold Ashanti has one of the industry's top exploration teams. Over the past 15 years, the Company discovered 49Moz of Mineral Resource from its portfolio outside of South Africa, averaging roughly 3.3Moz of gold a year at an average discovery cost of $34/oz from its brownfields exploration and $13/oz from its generative greenfields programme. The Company will continue investing in exploration to ensure that its pipeline of options remains well stocked and that the Company can sustain itself without being forced into expensive and complex mergers and acquisition activity. This approach is well-supported by a strong track record.

As the business becomes even leaner and more efficient, greater management focus will be applied to areas of growth and improvement. Key areas of focus for 2019 remain bringing Obuasi into production, executing on a series of affordable, high return brownfields improvements and progressing two key projects in Colombia up the value curve. Operational Excellence initiatives remain at the heart of our efforts to counter inflation and improve margins.

FULL-YEAR REVIEW
Production for 2018 came in toward the top end of guidance at 3.400Moz. Compared to 2017, production was 9% lower mainly due to the sale and closure of assets in South Africa. Production from retained operations for 2018, excluding Moab Khotsong, Kopanang and TauTona, was 3.349Moz at a total cash cost of $765/oz, compared with 3.279Moz at a total cash cost of $738/oz in 2017. AISC for these retained operations were $968/oz, compared with $1,017/oz in the same period last year. AISC for the International operations was $920/oz for 2018 compared to $972/oz for 2017. AISC for the South African operations, including Moab Khotsong, Kopanang and TauTona, was $1,178/oz compared with $1,245/oz in 2017.

Cash flow from operating activities for the year ended 31 December 2018 decreased by 14% to $857m compared to $997m in 2017, reflecting working capital lockups of $131m and the retrenchment costs related to the restructuring the South African business unit. In 2018, the Company generated $205m of operating cash flow less capital expenditure compared to $167m in 2017 reflecting a solid operating performance and lower capital expenditures. Free cash flow for the year, before taking growth capital into account, was $217m versus $125m a year earlier.

Free cash flow was negatively affected by delayed Kibali loan repayments due to the presidential elections in the DRC, which slowed down the administrative processes. It is anticipated that these loan repayments will resume during the course of this year. Free cash flow excluding abnormal costs such as the South Africa region redundancies, financing costs and other costs was $140m in 2018, compared to $50m a year earlier.

Total capital expenditure (including equity accounted investments) decreased by 24% to $721m in 2018, compared to $953m in 2017 and below the bottom end of the market guidance of between $800m to $920m. This included project capital expenditure of $148m invested in growth projects at Obuasi, Siguiri and Kibali in Continental Africa and Mponeng in South Africa. Capital expenditures were lower in South Africa due to the sale of assets in the region early in the year. Capital expenditures were also lower in the Democratic Republic of the Congo (DRC) at Kibali as the project development phase is coming to an end and the asset is ramping up production. In Guinea at Siguiri, investment was made in the brownfields expansion project which was completed towards the end of 2018. The new combination plant is currently undergoing commissioning ahead of ramp-up to full production. In Australia, capital investments were made towards a new secondary ball mill at Tropicana and completion of the Recovery Enhancement Project at Sunrise Dam.

Headline earnings for the year ended 31 December 2018 were $220m, or 53 US cents per share, compared with $27m, or 6 US cents per share, in 2017. Adjusted earnings before interest, tax, depreciation and amortisation (Adjusted EBITDA) of $1,480m in 2018 (compared to $1,483m in 2017) was essentially flat year-on-year.

The ratio of Net debt to Adjusted EBITDA at the end of December 2018 was 1.12 times compared with 1.35 times at the end of December 2017. Management has successfully maintained financial flexibility by remaining at or below its targeted leverage Net debt to Adjusted EBITDA ratio of 1.5 times, and well below the covenant ratio of 3.5 times, which applies under our revolving credit agreements.

Net debt decreased by 17% to $1.659bn at 31 December 2018, from $2.001bn at the 31 December 2017. Financial flexibility was further improved in October 2018, when a new five-year $1.4bn multi-currency revolving credit facility was agreed with our banking syndicate replacing our existing $1bn US Dollar and A$500m Australian Dollar facilities. Strong liquidity is provided both by this new revolving credit facility, which was fully undrawn at the end of 2018, and $329m in cash.

SECOND HALF YEAR REVIEW
Production from retained operations for the second half of 2018, excluding Moab Khotsong, Kopanang and TauTona, was 1.722Moz at a total cash cost of $726/oz, compared to 1.761Moz at a total cash cost of $733/oz for the last six months of 2017. AISC for these retained operations were $936/oz for the last six months of 2018, compared to $1,002/oz for the same period in 2017. AISC for the International operations was $895/oz for the last six months of 2018 compared to $959/oz for the last six months of 2017. AISC for the South African operations, including Moab Khotsong, Kopanang and TauTona, was $1,033/oz compared with $1,231/oz in the last six months of 2017.

Total production for the Company, including those operations either sold or closed earlier in 2018, was 1.772Moz at a total cash cost of $726/ oz for the six months ended 31 December 2018, compared to 2.007Moz at a total cash cost of $787/oz for the last six months of 2017. AISC for this set of assets decreased by 10% to $936/oz for the second half of 2018, versus $1,038/oz in the second half of 2017.

Free cash flow of $118m was generated in the second half of 2018, compared to $162m for the second half of 2017. The Company generated $204m of free cash flow, before taking growth capital into account, during the last six months of 2018, compared to $231m during the second half of 2017.

Headline earnings were $120m, or 29 US cents per share, for the second half of 2018 versus $115m, or 28 US cents per share, in the second half of 2017. Adjusted earnings before interest, tax, depreciation and amortisation (Adjusted EBITDA) was $756m, during the second half of 2018, compared to $872m during the second half of 2017.


Preliminary Condensed Financial Information for the year ended 31 December 2018 - www.AngloGoldAshanti.com
 
 
5

Capital expenditure in the second half of 2018 was $387m (including equity accounted investments) compared to $499m in the second half of 2017. Of the capital spent, non-sustaining project capital expenditure amounted to $86m during the last six months of 2018, compared to $70m during the second half of 2017.

Summary of six months-on-six months and year-on-year operating and cost variations:
Particulars
Six months ended
Dec 2018
Six months ended
Dec 2017
% Variance
six months vs prior year six months
Six months ended Dec 2017 from retained operations (3)
% Variation six months vs prior year six months
Year Dec 2018
Year Dec 2017
% Variation year vs prior year
Year 2018 from retained operations (3)
Year 2017 from retained operations (3)
% Variation year vs prior year
Operating review Gold
Production (kozs)
1,772
2,007
(12)
1,761
1
3,400
3,755
(9)

3,349
3,279
2
 
Financial review
Gold price received ($/oz)
1,215
1,270
(4)
1,270
(4)
1,261
1,251
1

1,261
1,251
1
Total cash costs ($/oz)
726
787
(8)
733
(1)
773
792
(2)

765
738
4
Corporate & marketing costs ($m) (1)
38
30
27
30
27
76
64
19

76
64
19
Exploration & evaluation costs ($m)
56
52
8
52
8
102
114
(11)

102
114
(11)
All-in sustaining costs ($/oz) (2)
936
1,038
(10)
1,002
(7)
976
1,054
(7)

968
1,017
(5)
All-in costs ($/oz) (2)
1,029
1,109
(7)
1,083
(5)
1,068
1,126
(5)

1,062
1,099
(4)
Adjusted EBITDA ($m)
756
872
(13)
852
(11)
1,480
1,483
—

1,480
1,447
2
 
Cash inflow from operating activities ($m)
536
676
(21)
643
(17)
857
997
(14)

858
955
(10)
Free cash flow ($m)
118
162
(27)
152
(22)
67
1
6,600

77
22
250
Free cash flow excluding SAR redundancies, financing costs and other ($m)
151
202
(25)
203
(26)
140
50
180

150
71
111
 
Capital expenditure ($m)
387
499
(22)
476
(19)
721
953
(24)

714
890
(20)

(1) Includes administration and other expenses.
(2) World Gold Council standard, excludes stockpiles written off.
(3) Retained operations exclude closed and sold operations.
Free cash flow ($m) (4)
 
 
 
 
 
 
 
Six months ended
Dec 2018
Six months ended
Dec 2017
 
Year Dec 2018
Year Dec 2017
 
 
 
 
 
 
Net cash inflow from operating activities
536

676

 
857
997

Capital expenditure
(359)
(439)
 
(652)
(830)
Net cash from operating activities after capital expenditure
177

237

 
205
167

Finance costs accrued per income statement
(71)

(72)

 
(140)
(142)

Net cash flow after capital expenditure and interest
106

165

 
65
25

Other investing activities
9

(11)

 
317
(32)

Credit facility transaction costs
(10)

—

 
(10)
—

Add backs:
 
 
 
 
 
Cash restricted for use
13

8

 
4
8

Proceeds on disposal of Moab Khotsong and Kopanang assets
—

—

 
(309)
—

Free cash flow
118

162

 
67
1

Normalised for:
 
 
 
 
 
South African redundancies
22

41

 
61
49

Credit facility transaction costs
10

—

 
10
—

Other costs
1

—

 
2
—

Free cash flow excluding South African redundancies, financing costs, and other costs
151

202

 
140
50

Less: Free cash flow from sold and discontinued operations
—

(1)

 
(10)
(21)

Free cash flow excluding South African redundancies, financing costs, and other costs from retained operations
151

203

 
150
71


(4) Refer to note G under "Non-GAAP disclosure" .


Preliminary Condensed Financial Information for the year ended 31 December 2018 - www.AngloGoldAshanti.com
 
 
6

2019 Guidance Update
 
 
Guidance
Notes
Production (000oz)
3,250 - 3,450
Production will be back weighted, with a stronger second half expected for Geita, Siguiri and Brazil
Costs
All-in sustaining costs ($/oz)
935 - 995
See economic assumptions below
Total cash costs ($/oz)
730 - 780
Overheads
Corporate costs ($m)
75 - 85
 
Expensed exploration and study costs ($m)
130 - 140
Including equity accounted joint ventures
Capital expenditure
Total ($m)
910 - 990
 
Sustaining capex ($m)
520 - 560
 
Non-sustaining capex ($m)
390 - 430
Expenditure related to Obuasi, Siguiri, Tropicana, Quebradona and Mponeng
Depreciation and amortisation ($m)
680
 
Depreciation and amortisation - included in equity accounted earnings ($m)
160
Earnings of associates and joint ventures
Interest and finance costs ($m) - income statement
130
 
Other operating expenses ($m)
85
Primarily related to the costs of care and maintenance for Obuasi and South African region

Economic assumptions are as follows: ZAR14.00/$, $/A$0.75, BRL3.65/$, AP40.00/$; Brent $74/bl.

Both production and cost estimates assume neither operational or labour interruptions, or power disruptions, nor further changes to asset portfolio and/or operating mines and have not been reviewed by our external auditors. Other unknown or unpredictable factors could also have material adverse effects on our future results and no assurance can be given that any expectations expressed by AngloGold Ashanti will prove to have been correct. Accordingly, actual results could differ from guidance and any deviation may be significant. Please refer to the Risk Factors section in AngloGold Ashanti’s annual report on Form 20-F for the year ended 31 December 2017, filed with the United States Securities and Exchange Commission (SEC).

SAFETY UPDATE
It is with deep regret that we report three fatalities which occurred during the first half of the year. In Brazil there was one fatality following an electricity-related incident in January. In the South Africa region at Moab Khotsong a tramming incident caused one fatality in February and at Mponeng a mechanical loader operator was fatally injured in a seismic fall of ground in April. The All-Injury Frequency Rate (AIFR), the broadest measure of workplace safety, decreased by 36% to 4.81 injuries per million hours worked for 2018, compared to 7.49 injuries per million hours worked for the previous year. AIFR for the quarter ended 31 December 2018 was 3.59 injuries per million hours worked, compared to 6.51 injuries per million hours worked for the same period in the previous year.

OPERATING HIGHLIGHTS
The Continental Africa region produced 1,512,000oz at a total cash cost of $773/oz in 2018, compared to 1,453,000oz at a total cash cost of $720/oz in 2017. AISC were $904/oz for the year ended 31 December 2018, compared to $953/oz for the year ended 31 December 2017. The region delivered a solid performance with production boosted by higher tonnes treated particularly from underground mining at Kibali and Geita and improved underground grade from Geita.

In the DRC, Kibali’s production was 363,000oz at a total cash cost of $600/oz for the year ended 31 December 2018, compared to 268,000oz at a total cash cost of $784/oz for the year ended 31 December 2017. The increase in production was mainly due to the 26% increase in recovered grade as underground mining displaced lower-grade open-pit ore, an improved recovery factor and an 8% increase in tonnage treated as a result of improved plant performance. Total cash cost consequently fell 23% due to higher gold production, partly offset by higher underground production costs compared to the open pit and a higher royalty rate introduced in the second half of the year.

In Ghana, Iduapriem’s production increased to 254,000oz at a total cash cost of $804/oz in 2018, compared to 228,000oz at a total cash cost of $823/oz in 2017. Production increased 11% year-on-year to a record, driven by 6% higher tonnage treated due to improved grinding and plant efficiency and 5% higher recovered grade, resulting from mining deeper, higher-grade areas in the Teberebie pit. Total cash cost dropped 2% over the year due to the increased production despite inflation effects related to higher fuel prices and mining costs particularly in the second half of the year.

During 2018, Obuasi remained in the care and maintenance phase whilst the redevelopment project for recommencing operations continued. The update on the Obuasi project is provided under “Project Updates” below.

In Guinea, Siguiri produced 242,000oz at a total cash cost of $844/oz in 2018, compared to 324,000oz at a total cash cost of $725/oz in 2017. Production was negatively impacted by a 16% decrease in recovered grade from treating lower grade oxide material and an 11% decrease in tonnes due to delays in the commissioning of the Carbon-in Leach (CIL) combination plant. Total cash cost increased year-on-year as a result of lower production, partly offset by lower mining costs compared to the same period the year before.

In Tanzania, Geita produced 564,000oz at a total cash cost of $804/oz for the year ended 31 December 2018, compared to 539,000oz at a total cash cost of $608/oz for the year ended 31 December 2017. Recovered grade saw a 5% increase year-on-year due to a range of operational improvements (advance grade control and underground mining efficiencies), which assisted in accessing higher grade ore particularly in the fourth quarter of 2018. Total cash costs, however, increased as a result of increased underground and open-pit mining costs compared to the same period in the previous year, in addition to some operational challenges in the primary crusher during the second half of the year.

In Mali, Sadiola produced 59,000oz at a total cash cost of $938/oz in 2018, compared to 63,000oz at a total cash cost of $900/oz in 2017. Production decreased due to a 9% drop in recovered grade from limited availability of the oxide ore as mining ceased during the year. The mine transitioned to a stockpile treatment plan at the beginning of the year, partly compensated for by a 3% increase in tonnes treated as a result of newly installed variable speed drives in the mill. Total cash costs increased as a result of lower production, partly offset by lower operating costs compared to the same period the year before.

Preliminary Condensed Financial Information for the year ended 31 December 2018 - www.AngloGoldAshanti.com
 
 
7

Production at Morila increased to 30,000oz at a total cash cost of $1,145/oz for the year ended 31 December 2018, compared to 28,000oz at a total cash cost of $974/oz for the year ended 31 December 2017. The increase in production was driven by a 19% increase in recovered grade as mining resumed during the year, resulting in the treatment of higher grade ore, partly offset by a 11% decrease in throughput due to treatment of harder ore. Total cash cost, however, increased due to higher operating cost as a result of the resumption of mining activities.

The Americas region produced 776,000oz at a total cash cost of $624/oz for the year ended 31 December 2018, compared to 840,000oz at a total cash cost of $638/oz for the year ended 31 December 2017. AISC were $855/oz in 2018, compared to $943/oz achieved in 2017.

In Argentina at Cerro Vanguardia, full year output in 2018 was maintained at the same level as 2017 producing 282,000oz at a total cash cost of $476/oz, compared to 283,000oz at a total cash cost of $522/oz in 2017. The mine managed to maintain production, despite lower underground grade, mainly because of higher tonnes mined and treated. Total cash costs fell mainly as a result of the weaker exchange rate due to the devaluation of the Argentine Peso against the US Dollar as well as improved efficiencies. These positive effects were partially attenuated by rapidly rising inflation which ended the year at 47%, mostly related to salary increments, and unfavourable stockpile movements. Lower average silver price and lower volumes sold also affected costs negatively.

A number of Operational Excellence initiatives were identified and implemented during 2018, including underground development optimisation, cost reduction in material and services contracts, workforce recruitment freeze, nitrate and flocculants optimisation, cost reduction in mine drilling steel and cyclone pumps liners, and overhead restructuring.

In September 2018, the Government of Argentina introduced the payment of export duties on exported goods. In terms of an existing tax stability agreement, Cerro Vanguardia is entitled to a refund of these export duties. At 31 December 2018, $14m was reflected as receivable and impacted free cash flow generated by the operation.

In Brazil, production was 494,000oz at a total cash cost of $706/oz for the year ended 31 December 2018, compared to 557,000oz at a total cash cost of $693/oz for the year ended 31 December 2017. Total cash costs were impacted by lower year-on-year production and inflationary pressure, partially offset by the Operational Excellence initiatives and favourable exchange rates. AISC was $966/oz for the year ended 31 December 2018, compared to $1,029/oz for the year ended 31 December 2017. This decrease is mainly due to lower sustaining capital expenditure driven by increased focus on capital management and benefits derived for the Operational Excellence initiatives. For the second half of 2018, production was 264,000oz at a total cash cost of $650/oz, compared to 302,000oz at a total cash cost of $692/oz during the same period in 2017. AISC were $922/oz for the second half of 2018, compared to $994/oz during the same period in 2017.

At AGA Mineração, full-year production in 2018 was 364,000oz at a total cash cost of $723/oz, compared to 424,000oz at a total cash cost of $671/oz in 2017. Production was lower as the Cuiabá complex faced delays in development and infrastructure constraints. During the fourth quarter of 2018, operating performance improved as measures were taken to improve mine quality by improving stope availability, drilling and mine recoveries while ensuring compliance to plan, with an offset due to the timing of sales. At Córrego do Sítio (CdS), lower grades in the sulphide operation and excessive rainfall resulted in 8% lower production. Production was also impacted by lower tonnes placed on the heap leach, model changes, and production stoppages due to strikes.

At Serra Grande, full-year production in 2018 was 130,000oz at a total cash cost of $660/oz, compared to 133,000oz at a total cash cost of $764/oz in 2017. Production was lower due to less ore mined following delays in receiving environmental deforestation and waste dump permits.

AngloGold Ashanti has a clear framework that sets principles, standards and guidelines for the construction, management and oversight of its tailings storage facilities (TSFs). It is our obligation to ensure that our TSFs are stable, non-polluting and contained. We are guided in this regard by international best practice, and conduct regular detailed inspections by internal specialists and independent third-party experts, as well as ongoing monitoring and ongoing preventive maintenance. On 7 February 2019, Regulatory Authorities of Brazil’s Minas Gerais state suspended all tailings facilities in the state constructed using the upstream design method.  AngloGold Ashanti does not have upstream TSFs in the state, but it does have one Centerline facility at the CdS operation.  As a precautionary step, CdS’s tailings facility was temporarily suspended while the facility’s design is confirmed by the regulators as the Centerline method. We are in close dialogue with the regulator in this regard, and look forward to resuming operation at the site as soon as they have satisfied themselves of the design of the facility. The TSF supports production of about 95,000oz a year at CdS. The balance of 35,000oz of CdS’s annual production comes from its heap leach, and so is unaffected by the TSF suspension. In the meantime, scheduled maintenance is underway and mining at the site continues as we stockpile ore ahead of the plant, given that the plant at CdS has processing headroom above what is normally mined.

The Australia region produced 625,000oz at a total cash cost of $762/oz for the year ended 31 December 2018, compared to 559,000oz at a total cash cost of $743/oz for the year ended 31 December 2017. AISC were $1,038/oz in 2018, compared to $1,062/oz in 2017. For the second half of 2018, the Australia region produced 319,000oz at a total cash cost of $735/oz, compared to 305,000oz at a total cash cost of $717/oz for the same period in 2017.

Higher mill feed grades in the first and the last quarters of 2018 contributed to a 21% increase in year-on-year production at Sunrise Dam, which delivered 289,000oz of gold production at a total cash cost of $920/oz in 2018, compared to 238,000oz at a total cash cost of $919/oz in 2017. Performance of the new Recovery Enhancement Project (REP) has been below expectation, however a structured optimisation programme is delivering positive results and, along with a higher proportion of Vogue ore in the feed blend, recovery is expected to increase to Feasibility Study levels during 2019. A number of critical once-off capital projects were completed in 2018, including construction of the REP, a multi-year extension to the Tailings Storage Facility and the installation and commissioning of two 2MW primary ventilation fans.

Tropicana produced 336,000oz at a total cash cost of $594/oz in 2018, compared to 321,000oz at a total cash cost of $564/oz in 2017. At Tropicana, production increased 5% due to higher mill feed grades and higher mill throughput. At Tropicana the second 6MW ball mill was commissioned ahead of schedule in November 2018 and full ramp-up achieved within a week delivering increased throughput and improved metallurgical recovery in line with the Feasibility Study. In December 2018, the Tropicana JV partners announced that a Feasibility Study into the development of an underground mine beneath the Boston Shaker pit was underway after a Pre-Feasibility Study confirmed that underground mining was technically and financially viable.

The South Africa region produced 487,000oz at a total cash cost of $1,033/oz for the year ended 31 December 2018, compared to 903,000oz at a total cash cost of $1,085/oz for the year ended 31 December 2017. The lower production decrease reflects fewer mines in the region with only two months of contribution from Kopanang and Moab Khotsong, following their sale on 28 February 2018. TauTona ceased mining in

Preliminary Condensed Financial Information for the year ended 31 December 2018 - www.AngloGoldAshanti.com
 
 
8

September 2017 and has been placed in orderly closure. AISC for the South Africa region were $1,178/oz in 2018, compared to $1,245/oz in 2017.

Production from retained operations was 436,000oz in 2018, up 2% year-on-year. AISC from the retained operations was down 11% for the second half of 2018, mainly as a result of higher gold output. Cost management efforts continue with earnest in the South Africa region, aimed at ensuring that both on- and off-mine cost structures are appropriately resized for the smaller production base. As part of the Mponeng safe production strategy related to the improvement of face time, Mponeng signed a new shift arrangement agreement with its South Africa trade unions. The new shift arrangements were successfully implemented as of 12 November 2018 and are expected to help improve productivity.

At Mponeng, full-year production in 2018 was 265,000oz at a total cash cost of $977/oz, compared to 224,000oz at a total cash cost of $1,014/ oz in 2017. Accessing higher-value reef and improving mining practices delivered an increase of 18% in production year-on-year. During the second half of 2018, production increased by 24% year-on-year driven by improved mine call factor, increased tonnes treated, and improvement in underground grade as a result of better mining mix and recoveries.

At Mine Waste Solutions (MWS), production for the year ended 31 December 2018 was 103,000oz at a total cash costs of $812/oz, compared to 109,000oz at a total cash cost of $780/oz for the year ended 31 December 2017. MWS remained cash positive despite the 5% year-on-year decline in production, which was mainly due to lower recoveries as a result of carbon management challenges experienced during the third quarter of 2018, which improved toward the end of 2018. Tonnages ended lower year-on-year, impacted by unplanned stoppages due to inclement weather and associated power outages. Approximately 167 hours of power failures were experienced in December alone. Engagements were held with Eskom management, the electricity public utility, and a protocol was agreed to create flexibility during inclement weather.

Hard Rock production for the year declined 18% while production at the Vaal River Surface Sources declined reflecting the sale of the Mispah and West Gold plants. Yield contribution from West Wits Surface Sources was also 22% lower year-on-year due to the areas that were reclaimed at the Savuka Marginal Ore Dumps and Tailings Storage Facilities (TSF). Accordingly, mining strategies were changed during the third quarter of 2018 and feed grades are beginning to improve.

CORPORATE UPDATE

Board and CEO changes
Mr Kelvin Dushnisky was appointed as Chief Executive Officer and an executive member of the Board of Directors of AngloGold Ashanti, effective 1 September 2018. The Company also announced the appointment of two independent non-executive directors to its Board of Directors, Mr Alan Ferguson and Mr Jochen Tilk, with effect from 1 October 2018 and 1 January 2019, respectively.

Changes in Executive Portfolios
Some organisational and management changes have taken place primarily drawing from the well-developed pool of talent from within the organisation. These appointments are being implemented in parallel with the planned retirements of COO: South Africa Chris Sheppard, Executive Vice President: Sustainable Development David Noko, and Executive Vice President Strategy & Business Development Charles Carter. The global operating base will remain in two regions, each overseen by a chief operating officer.

The Africa portfolio, which will now include the rationalised South Africa footprint, will be overseen by Sicelo Ntuli, formerly Senior Vice President: Continental Africa. Sicelo has done excellent work in driving the turnaround of Iduapriem and for the past two years under Ludwig Eybers’ guidance, has had line responsibility for the Continental Africa region, which has delivered consistently strong operating performances.

Moses Madondo, who did exceptional work as Senior Vice President: Vaal River Region, before the sale of those assets last year, has assumed responsibility for our South Africa portfolio, as Senior Vice President: South Africa.

Ludwig Eybers will remain COO: International, with greater focus on advancing our Colombia options up the value curve, unlocking the potential that exists within our Brazil and Australia assets, and ensuring our global exploration programme continues to deliver strong outcomes.

Pierre Chenard, formerly Senior Vice President of Business Development of Rio Tinto Alcan Inc., and also its general counsel, has been named Executive Vice President: Business Development & Strategy. Pierre, who has also held roles in the North American gold sector with Cambior, Hope Bay and latterly as a director on the Board of Osisko Gold Royalties Ltd., brings a wealth of experience across a number of jurisdictions, to the role.

Stewart Bailey, formerly Senior Vice President of Investor Relations & Group Communications, has been named Executive Vice President: Corporate Affairs, a portfolio that will include stakeholder relations and the broader ambit of sustainability policy and oversight. His in-depth knowledge of the Company and many of its stakeholders, close cooperation with the sustainability team over several years and ongoing work in integrating environmental, social and governance reporting into the broader business, provide a strong foundation for this role.

The incumbents have been working alongside their successors in each role ensuring a seamless transition in those areas.

Developments in the South Africa region
AngloGold Ashanti reached a three-year wage agreement with all its trade unions in South Africa, effective 1 July 2018. The wage agreement includes wage increases over three years as well as a new shift arrangement, aimed at improving production with continued focus on safety.

Restructuring of the South African asset portfolio was completed in December 2018. The restructuring process was focused on protecting the longer-term sustainability of the business to ensure that both on- and off-mine cost structures are appropriate for the significantly smaller production base as compared to historic levels. The process was completed reaching a balance between preserving local jobs while rightsizing overhead structures for the current smaller production base. Forced retrenchments were mitigated, from 2,000 initially anticipated in the most recent restructuring, to 72, by offering voluntary severance packages, and selling non-core assets, such as healthcare facilities and rail networks in the Vaal River region, which helped preserve jobs through a transfer of ownership.

Obuasi Arbitration Proceedings Resolved
The Obuasi mine, operated by AngloGold Ashanti (Ghana) Limited, had been the subject of a dispute with the Republic of Ghana since February 2016, when military protection was withdrawn from the mine and the site was being overrun by illegal miners for close to nine months. The

Preliminary Condensed Financial Information for the year ended 31 December 2018 - www.AngloGoldAshanti.com
 
 
9

case was registered with the International Centre for Settlement of Investment Disputes in May 2016. The dispute has now been resolved to the parties’ mutual satisfaction. As a result, on 19 July 2018, the Company submitted a request to the Tribunal for the legal proceedings to be discontinued. Furthermore, the Parliament of Ghana has ratified a number of regulatory and fiscal agreements with the Company in relation to the redevelopment of the mine into a modern and mechanised operation, and environmental permits have been issued by the relevant Ghanaian agency, both events marking an important step for the mine’s future.

Tanzania Arbitration Proceedings Update
With reference to the arbitration proceedings, previously disclosed, which commenced in July 2017, AngloGold Ashanti's focus continues to be on pursuing a collaborative dialogue with the government of Tanzania. The arbitration proceedings are currently suspended until July 2019.


Yatela Sales Process
On 14 February 2019, Sadiola Exploration Limited (SADEX), the subsidiary jointly held by AngloGold Ashanti and IAMGOLD Corporation, entered into a share purchase agreement with the Government of Mali, whereby SADEX agreed to sell to the Government of Mali its 80% participation in Société d’Exploitation des Mines d’Or de Yatela (Yatela), for a consideration of USD 1. The transaction remains subject to the fulfillment of a number of conditions precedent, among which the adoption of two laws, confirming the change of status of Yatela to a State Entity, and also the creation of a dedicated state agency, notably in charge of mine rehabilitation and closure. As part of the transaction, and upon its completion, SADEX will make a one-time payment to the said state agency, in an amount corresponding to the estimated costs of completing the rehabilitation and closure of the Yatela site, and also financing certain outstanding social programmes. Upon completion and this payment being made, SADEX and its affiliate companies will be released of all obligations relating to the Yatela project including those relating to rehabilitation, mine closure and the financing of social programmes.

Settlement of Silicosis and TB class action
On 3 May 2018, Richard Spoor Inc, Abrahams Kiewitz Inc and the Legal Resources Centre (representing claimants in the silicosis and tuberculosis class action litigation) and African Rainbow Minerals, Anglo American SA, AngloGold Ashanti, Gold Fields, Harmony and Sibanye-Stillwater announced that they have reached a settlement in this matter. Following this announcement, on 13 December 2018, the Johannesburg High Court issued a court order setting out the processes in terms of which members of the settling classes and any interested parties should be invited to show cause why the settlement should not be made an order of court. Both the court order and the settlement agreement set out steps that will need to be followed from this point. For more details on the process see: www.silicosissettlement.co.za and https:// www.oldcollab.co.za/.

JSE Sponsor and Joint Corporate Brokers
The Company's previous JSE Sponsor, Deutsche Securities (SA) Proprietary Limited, resigned as sponsor following the closure of Deutsche Bank’s Sponsor Services business in South Africa. The Standard Bank of South Africa Limited was appointed as equity sponsor, with effect from 30 November 2018, and debt sponsor, with effect from 31 January 2019.

Additionally, JPMorgan Chase & Co. and Royal Bank of Canada were named joint corporate brokers, effective 30 November 2018.

PROJECT UPDATES

Obuasi Redevelopment Project
Following receipt of all the requisite Ghanaian Government approvals, including parliamentary ratification, and environmental approvals in June 2018, redevelopment of the Obuasi high-grade orebody has started in earnest. Establishment of the project and operating teams have progressed well and all key roles have been filled. Detailed design has continued, focusing on the processing plant and underground infrastructure. Critical long-lead items have been ordered. Demolition of redundant processing plant structures has commenced. Refurbishment planning was completed, and works are set to commence by end of March 2019. The housing refurbishment programme has also commenced and the expansion of the mining contractor’s camp is well advanced.

The underground mining fleet has been delivered and commissioned. The underground mining contractor has commenced mobilisation. Operational readiness activities, including the design of the mine operating systems, has progressed to plan.

The project is being developed in two phases, the first is to achieve production at 2,000tpd with first gold pour at the end of 2019. The second is to achieve production of 4,000tpd by the end of 2020.

In order to ensure meaningful Ghanaian participation in the project, a key commitment made by AngloGold Ashanti at the outset of Obuasi’s redevelopment, the mining contract was awarded to a joint venture Underground Mining Alliance Limited (UMA) formed by Ghana’s Rocksure International (Rocksure) (30%) and Australia’s African Underground Mining Services (AUMS) (70%), which will also help facilitate the transfer of underground mining expertise to Accra-based Rocksure. To facilitate the JV and effect operating cost and import duty savings, AngloGold Ashanti (Ghana) Limited purchased the mining fleet at a cost of approximately $46m. As announced in November 2018, this mining fleet purchase increases the initial project capital expenditure range from $450 to $500m to $495 to $545m. However, at the same time, this purchase reduces the contract rates over the period of the contract and is estimated to improve AISC by approximately $25/oz.

Given the delayed receipt of permit approvals in 2018, some capital expenditure has been deferred from 2018 into 2019 and from 2019 into 2020. The latest outlook on the capital spend profile is expected to be 10%, 60%, and 30% in 2018, 2019 and 2020, respectively.

Siguiri Combination Plant
The new Combination Plant construction has been completed and commissioning is expected at the end of the first quarter of 2019. The plant will allow for the treatment of harder rock at the Siguiri mine. Additionally, a new power plant intended to bridge the gap to meet the mine’s additional power requirements was completed and ready for commercial operations at the end of the fourth quarter of 2018, as planned.

Mponeng Project
During 2018, the raise boring of the reef pass from 123 level to 126 level was completed and the construction contractor was mobilised in December 2018 to construct the tip and control chute. The process of installing additional support to consolidate the hanging wall and side walls of the pump chamber and substation will follow in the second half of 2019. Alternative project design configurations are being studied for Phase 2.


Preliminary Condensed Financial Information for the year ended 31 December 2018 - www.AngloGoldAshanti.com
 
 
10

Quebradona Project
At Quebradona (94.9% AngloGold Ashanti interest and 5.1% B2Gold interest) the prefeasibility study was completed. The maiden ore reserve has been declared of 1.26m tonnes of copper and 2.22Moz of gold. The study envisages a 6.2m tonnes per annum sub-level cave mining operation, with 23-year mine life averaging 1.21% copper plus 0.66g/t gold ore milled resulting in an IRR of 16.8%, at a gold price of $1,240/oz and a copper price of $2.90/lb.

AngloGold Ashanti will proceed with the feasibility study, the results of which will be announced in 2020. From January to April 2019, initial feasibility activities focused on defining and enhancing the scope further, will be conducted, with the EIA submission aimed for May 2019. During the second half of 2019, engineering work of the defined project will be the main focus.


Gramalote Joint Venture
The Gramalote project is a joint venture between AngloGold Ashanti (51%) and B2Gold (49%), with AngloGold Ashanti as the operator and manager of the project. Following additional infill and resource extension drilling the Mineral Resource model is being updated. The additional drilling has indicated the potential for resource growth and potentially higher grades through selectivity.  Final budgets, schedules and work plans for advancing Gramalote will be developed once the Mineral Resource model has been finalised and the updated audited project economics are available.

EXPLORATION
See the Exploration Update document on the Company's website (www.anglogoldashanti.com) for a detailed update on both Brownfields and Greenfields exploration programmes.

Preliminary Condensed Financial Information for the year ended 31 December 2018 - www.AngloGoldAshanti.com
 
 
11

MINERAL RESOURCE AND ORE RESERVE

The Mineral Resource and Ore Reserve for AngloGold Ashanti are reported in accordance with the minimum standards described by the South African Code for the Reporting of Exploration Results, Mineral Resources and Mineral Reserves (The SAMREC Code, 2016 Edition), and also conform to the standards set out in the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code, 2012 Edition).

The Mineral Resource is inclusive of the Ore Reserve component, unless otherwise stated. In complying with revisions to the SAMREC Code the changes to AngloGold Ashanti’s Mineral Resource and Ore Reserve have been reviewed and it was concluded that none of the changes are material to the overall valuation of the Company. AngloGold Ashanti has therefore once again resolved not to provide the detailed reporting as defined in Table 1 of the SAMREC Code, apart from the maiden Ore Reserve declaration for Quebradona. The Company will however continue to provide the high level of detail it has in previous years in order to comply with the transparency requirements of the SAMREC Code.

AngloGold Ashanti strives to actively create value by growing its major asset - the Mineral Resource and Ore Reserve. This drive is based on active, well-defined brownfields and greenfields exploration programmes, innovation in both geological modelling and mine planning and continual optimisation of the asset portfolio.

PRICE
The SAMREC and JORC Codes require the use of reasonable economic assumptions. These include long-range commodity price and exchange rate forecasts. These are reviewed annually and are prepared in-house using a range of techniques including historic price averages.

The Mineral Resource sensitivities shown in the detail of this report use a base of $1,400/oz and a range of $200/oz, unless stated otherwise.

Gold Price
The following local prices of gold were used as a basis for estimation in the December 2018 declaration:
 
Gold Price
Local prices of gold
 
South Africa
Australia
Brazil
Argentina
 
US$/oz
ZAR/kg
AUD/oz
BRL/oz
ARS/oz
 2018 Ore Reserve
1,100
501,150
1,509
3,565
45,443
 2017 Ore Reserve
1,100
512,059
1,491
3,573
17,898
 2018 Mineral Resource
1,400
563,331
1,778
4,501
51,564
 2017 Mineral Resource
1,400
601,870
1,824
4,492
21,242

Copper Price
The following copper price was used as a basis for estimation in the December 2018 declaration:
 
Copper Price
US$/lb
 
 2018 Ore Reserve
2.65
 2018 Mineral Resource
3.30
 2017 Mineral Resource
3.16


Preliminary Condensed Financial Information for the year ended 31 December 2018 - www.AngloGoldAshanti.com
 
 
12

MINERAL RESOURCE
Gold:
The AngloGold Ashanti Mineral Resource decreased from 208.2Moz in December 2017 to 184.6Moz in December 2018. This gross annual decrease of 23.6Moz includes depletion of 3.9Moz and the disposal of assets of 20.1Moz. The balance of 0.4Moz reduction in Mineral Resource, results from an increase due to exploration and modelling of 4.5Moz and reductions due to revised geotechnical design requirements of 4.0Moz, other factors of 0.1Moz and changes in cost of 0.2Moz. The Mineral Resource has been estimated at a gold price of $1,400/oz (2017: $1,400/ oz).

MINERAL RESOURCE
Moz 

Mineral Resource as at 31 December 2017
208.2

Disposals
Moab Khotsong
(16.2
)
 
Kopanang
(3.0
)
 
Vaal River Surface
(0.9
)
 
Sub Total
188.1

Depletions
 
(3.9
)
 
Sub Total
184.2

Additions
 
 
AGA Mineração
Increase due to exploration and modelling revisions
0.6

Kibali
Exploration success resulted in the increase in Mineral Resource
0.6

Cerro Vanguardia
The increase is due to a combination of reduced costs and revised estimation methodology
0.5

Other
Additions less than 0.5Moz
1.9

 
Sub Total
188.2

Reductions
 
 
Mponeng
The key reason for the reduction was the removal of the TauTona shaft pillars and increased costs. These reductions were countered in part by drilling success
(3.5
)
Other
Reductions less than 0.5Moz
(0.1
)
Mineral Resource as at 31 December 2018
184.6


Copper:
The AngloGold Ashanti Mineral Resource decreased from 3.63Mt (8,000Mlbs) in December 2017 to 3.61Mt (7,954Mlbs) in December 2018. This gross annual decrease of 0.02Mt includes a reduction due to methodology of 0.09Mt offset by a change in ownership of 0.05Mt and other factors which resulted in an increase of 0.02Mt. The Mineral Resource has been estimated at a copper price of US$3.30/lb (2017: US$3.16/lb).

MINERAL RESOURCE - COPPER
Mt
 Mlb
Ore Reserve as at 31 December 2017
 
3.63
8,000
Reductions
 
 
 
Quebradona
 
(0.02)
(46)
Ore Reserve as at 31 December 2018
3.61
7,954


Preliminary Condensed Financial Information for the year ended 31 December 2018 - www.AngloGoldAshanti.com
 
 
13

ORE RESERVE
Gold:
The AngloGold Ashanti Ore Reserve decreased from 49.5Moz in December 2017 to 44.1Moz in December 2018. This gross annual decrease of 5.4Moz includes depletion of 3.6Moz. The loss after depletions of 1.8Moz, results from the disposal of assets in the South African region of 6.1Moz, additions due to exploration and modelling changes of 4.3Moz, whilst other factors resulted in a 0.1Moz addition and changes in economic assumptions resulted in a 0.1Moz reduction. The Ore Reserve has been estimated using a gold price of $1,100/oz (2017: $1,100/oz).

ORE RESERVE - GOLD
Moz 
Ore Reserve as at 31 December 2017
 
49.5
Disposals
Moab Khotsong
(4.8)
 
Kopanang
(0.4)
 
Vaal River Surface
(0.9)
 
Sub Total
43.5
Depletions
 
(3.6)
 
Sub Total
39.9
Additions
 
 
Quebradona
Initial Ore Reserve publication post successful conclusion of the prefeasibility study
2.2
Geita
Additions are primarily due to exploration success on underground targets at Star and Comet and Nyankanga
0.5
CVSA
Reduced cost and exploration success led to the additions
0.4
Sunrise Dam
The increase is due to exploration success
0.3
Other
Additions less than 0.3Moz
1.0
 
Sub Total
44.4
Reductions
 
 
 
 
 
Other
Reductions less than 0.3Moz
(0.3)
Ore Reserve as at 31 December 2018
44.1

Copper:
The first AngloGold Ashanti Ore Reserve for copper of 1.26Mt (2,769Mlbs) is based on exploration success and the completion of the prefeasibility study at Quebradona. The Ore Reserve has been estimated at a copper price of US$2.65/lb.

ORE RESERVE - COPPER
Mt
Mlb
Ore Reserve as at 31 December 2017
 
0.00
0
Additions
 
 
 
Quebradona
Exploration success and completion of the prefeasibility study
1.26
2,769
Ore Reserve as at 31 December 2018
1.26
2,769

SALE OF ASSETS
AngloGold Ashanti sold various assets in the Vaal River region of its South African operations. The sales processes were finalised on the 28th February 2018. On conclusion of the sales and after depletions for that period of 2018 the final Mineral Resource and Ore Reserve at the time of the sale are shown below:

Kopanang:
Mineral Resource          3.00Moz
Ore Reserve         0.36Moz
Moab Khotsong:
Mineral Resource        16.20Moz
Ore Reserve         4.87Moz
Surface Operations:
Mineral Resource         0.87Moz
Ore Reserve         0.87Moz

BY-PRODUCTS
Several by-products will be recovered as a result of processing of the gold Ore Reserve and Copper Ore Reserve. These include 0.37Mt of sulphur from Brazil, 32.68Moz of silver from Argentina and 23.58Moz of silver from Colombia.

CORPORATE GOVERNANCE
AngloGold Ashanti has established a Mineral Resource and Ore Reserve Steering Committee (RRSC), which is responsible for setting and overseeing the Company’s Mineral Resource and Ore Reserve governance framework and for ensuring that it meets the Company’s goals and objectives while complying with all relevant regulatory codes. Its membership and terms of references are mandated under a policy document signed by the Chief Executive Officer.


Preliminary Condensed Financial Information for the year ended 31 December 2018 - www.AngloGoldAshanti.com
 
 
14

Over more than a decade, the Company has developed and implemented a rigorous system of internal and external reviews aimed at providing assurance in respect of Ore Reserve and Mineral Resource estimates. The following operations were subject to an external review in line with the policy that each operation project will be reviewed by an independent third party on average once every three years:

Mineral Resource and Ore Reserve at Iduapriem
Mineral Resource and Ore Reserve at Sunrise Dam
Mineral Resource and Ore Reserve at Cerro Vanguardia
Mineral Resource and Ore Reserve at Serra Grande
Mineral Resource and Ore Reserve at Quebradona

The external reviews were conducted by Pivot Mining Consultants Pty (Ltd), AMC Consultants Pty Ltd, Golder Associates Pty Ltd, Ausenco Engineering Canada Inc. and Optiro Pty Ltd respectively. Certificates of sign-off have been received from the companies conducting the external reviews to state that the Mineral Resource and/or Ore Reserve comply with the SAMREC and JORC Codes.

In addition, numerous internal Mineral Resource and Ore Reserve process reviews were completed by suitably qualified Competent Persons from within AngloGold Ashanti and no significant deficiencies were identified. The Mineral Resource and Ore Reserve are underpinned by appropriate Mineral Resource Management processes and protocols that ensure adequate corporate governance. These procedures have been developed to be compliant with the guiding principles of the US Sarbanes-Oxley Act of 2002 (SOX).

AngloGold Ashanti makes use of a web-based group reporting database called the Resource and Reserve Reporting System (R3) for the compilation and authorisation of Mineral Resource and Ore Reserve reporting. It is a fully integrated system for the reporting and reconciliation of Mineral Resource and Ore Reserve that supports various regulatory reporting requirements including the US Securities and Exchange Commission and the JSE under SAMREC. AngloGold Ashanti uses R3 to ensure a documented chain of responsibility exists from the competent persons at the operations to the Company’s RRSC.

AngloGold Ashanti has also developed an enterprise-wide risk management tool that provides consistent and reliable data that allows for visibility of risks and actions across the group. This tool is used to facilitate, control and monitor material risks to the Mineral Resource and Ore Reserve, thus ensuring that the appropriate risk management and mitigation plans are in place.

COMPETENT PERSONS
The information in this report relating to exploration results, Mineral Resources and Ore Reserves is based on information compiled by or under the supervision of the Competent Persons as defined in the SAMREC or JORC Codes. All Competent Persons are employed by AngloGold Ashanti, except for Kibali and Morila, and have sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are undertaking. The legal tenure of each operation and project has been verified to the satisfaction of the accountable Competent Person and all Ore Reserves have been confirmed to be covered by the required mining permits or there exists a realistic expectation that these permits will be issued. This will be detailed in the 2018 Mineral Resource and Ore Reserve document.

Accordingly, the Chairman of the Mineral Resource and Ore Reserve Steering Committee, VA Chamberlain, MSc (Mining Engineering), BSc (Hons) (Geology), MGSSA, FAusIMM, assumes responsibility for the Mineral Resource and Ore Reserve processes for AngloGold Ashanti and is satisfied that the Competent Persons have fulfilled their responsibilities. VA Chamberlain has 31 years’ experience in exploration and mining and is employed full-time by AngloGold Ashanti and can be contacted at the following address: 76 Rahima Moosa Street, Newtown, 2001, South Africa.

A detailed breakdown of Mineral Resource and Ore Reserve and backup detail will be provided on the AngloGold Ashanti website (www.anglogoldashanti.com) and www.aga-reports.com.


Preliminary Condensed Financial Information for the year ended 31 December 2018 - www.AngloGoldAshanti.com
 
 
15

MINERAL RESOURCE BY REGION (ATTRIBUTABLE) INCLUSIVE OF ORE RESERVE - Gold
Gold
 
Tonnes

Grade
        Contained gold
 as at 31 December 2018
Category
million

g/t
Tonnes

Moz
South Africa
Measured
113.47

1.49
168.68

5.42
 
Indicated
614.07

1.91
1,170.36

37.63
 
Inferred
29.10

9.35
271.96

8.74
 
Total
756.64

2.13
1,611.00

51.79
Continental Africa
Measured
43.44

2.04
88.84

2.86
 
Indicated
469.94

2.57
1,209.71

38.89
 
Inferred
202.51

3.43
695.30

22.35
 
Total
715.89

2.79
1,993.85

64.10
Australasia
Measured
59.03

1.48
87.32

2.81
 
Indicated
90.51

1.98
179.38

5.77
 
Inferred
29.79

2.77
82.52

2.65
 
Total
179.34

1.95
349.22

11.23
Americas
Measured
30.33

5.12
155.29

4.99
 
Indicated
1,204.13

0.91
1,095.22

35.21
 
Inferred
657.33

0.82
536.86

17.26
 
Total
1,891.79

0.94
1,787.38

57.47
AngloGold Ashanti total
Measured
246.28

2.03
500.13

16.08
 
Indicated
2,378.65

1.54
3,654.68

117.50
 
Inferred
918.73

1.73
1,586.64

51.01
 
Total
3,543.66

1.62
5,741.45

184.59

MINERAL RESOURCE BY REGION (ATTRIBUTABLE) INCLUSIVE OF ORE RESERVE - Copper
Copper
 
Tonnes
Grade
        Contained copper
 as at 31 December 2018
Category
million
%Cu
Tonnes
Mlb

Americas
Measured
0
0
0
0

 
Indicated
243
 0.86
 2.09
4,617

 
Inferred
325
 0.47
 1.51
3,337

 
Total
568
 0.64
 3.61
7,954

AngloGold Ashanti total
Measured
0
0
0
0

 
Indicated
243
 0.86
 2.09
4,617

 
Inferred
325
 0.47
 1.51
3,337

 
Total
568
 0.64
 3.61
7,954



Preliminary Condensed Financial Information for the year ended 31 December 2018 - www.AngloGoldAshanti.com
 
 
16

MINERAL RESOURCE BY REGION (ATTRIBUTABLE) EXCLUSIVE OF ORE RESERVE - Gold
Gold
 
Tonnes

Grade
        Contained gold
 as at 31 December 2018
Category
million

g/t
Tonnes

Moz
South Africa
Measured
6.64

19.83
131.75

4.24
 
Indicated
30.97

17.42
539.39

17.34
 
Inferred
10.62

13.88
147.43

4.74
 
Total
48.24

16.97
818.56

26.32
Continental Africa
Measured
5.05

4.85
24.49

0.79
 
Indicated
292.05

2.56
747.70

24.04
 
Inferred
199.75

3.47
693.42

22.29
 
Total
496.85

2.95
1,465.62

47.12
Australasia
Measured
32.57

1.65
53.73

1.73
 
Indicated
52.76

1.78
93.66

3.01
 
Inferred
27.46

2.70
74.14

2.38
 
Total
112.78

1.96
221.53

7.12
Americas
Measured
17.47

6.51
113.72

3.66
 
Indicated
1,016.43

0.88
895.00

28.77
 
Inferred
654.55

0.81
529.73

17.03
 
Total
1,688.45

0.91
1,538.45

49.46
AngloGold Ashanti total
Measured
61.73

5.24
323.69

10.41
 
Indicated
1,392.2

1.63
2,275.75

73.17
 
Inferred
892.38

1.62
1,444.71

46.45
 
Total
2,346.32

1.72
4,044.15

130.02


MINERAL RESOURCE BY REGION (ATTRIBUTABLE) EXCLUSIVE OF ORE RESERVE - Copper
Copper
 
Tonnes
Grade
        Contained copper
 as at 31 December 2018
Category
million
%Cu
Tonnes
Mlb

Americas
Measured
0
0
0
0

 
Indicated
139
 0.61
 0.84
1,848

 
Inferred
325
 0.47
 1.51
3,337

 
Total
464
 0.51
 2.35
5,185

AngloGold Ashanti total
Measured
0
0
0
0

 
Indicated
139
 0.61
 0.84
1,848

 
Inferred
325
 0.47
 1.51
3,337

 
Total
464
 0.51
 2.35
5,185



Preliminary Condensed Financial Information for the year ended 31 December 2018 - www.AngloGoldAshanti.com
 
 
17

ORE RESERVE BY REGION (ATTRIBUTABLE) - Gold
Gold
 
Tonnes

Grade
        Contained gold
 as at 31 December 2018
Category
million

g/t
Tonnes

Moz
South Africa
Proved
107.67

0.31
33.89

1.09
 
Probable
564.02

0.87
488.59

15.71
 
Total
671.70

0.78
522.47

16.80
Continental Africa
Proved
35.92

1.57
56.31

1.81
 
Probable
170.89

2.64
451.70

14.52
 
Total
206.81

2.46
508.01

16.33
Australasia
Proved
26.43

1.27
33.50

1.08
 
Probable
37.63

2.27
85.26

2.74
 
Total
64.06

1.85
118.76

3.82
Americas
Proved
11.24

2.75
30.90

0.99
 
Probable
186.94

1.02
191.14

6.15
 
Total
198.18

1.12
222.04

7.14
AngloGold Ashanti total
Proved
181.26

0.85
154.60

4.97
 
Probable
959.49

1.27
1,216.69

39.12
 
Total
1,140.75

1.20
1,371.28

44.09

ORE RESERVE BY REGION (ATTRIBUTABLE) - Copper
Copper
 
Tonnes
Grade
        Contained copper
 as at 31 December 2018
Category
million
%Cu
Tonnes
Mlb

Americas
Proved
0
0
0
0

 
Probable
104
 1.21
 1.26
2,769

 
Total
104
 1.21
 1.26
2,769

AngloGold Ashanti total
Proved
0
0
0
0

 
Probable
104
 1.21
 1.26
2,769

 
Total
104
 1.21
 1.26
2,769


Rounding of figures may result in computational discrepancies.



Preliminary Condensed Financial Information for the year ended 31 December 2018 - www.AngloGoldAshanti.com
 
 
18

mastersecjune2017image2a03.gif
EY
102 Rivonia Road
Sandton
Private Bag X14
Sandton
2146
 
Ernst & Young Incorporated
Co. Reg. No. 2005/002308/21
Tel: +27 (0) 11 772 3000
Fax: +27 (0) 11 772 4000
Docex 123 Randburg
ey.com





Independent auditor’s review report on the condensed consolidated financial statements for the twelve months ended 31 December 2018 to the shareholders of AngloGold Ashanti Limited

We have reviewed the condensed consolidated financial statements of AngloGold Ashanti Limited (the ‘Company’) contained in the accompanying preliminary report on pages 20 to 40, which comprise the accompanying condensed consolidated statement of financial position as at 31 December 2018, the condensed consolidated income statement, statement of comprehensive income, statement of changes in equity and statement of cash flows for the twelve months then ended, and selected explanatory notes.

Directors’ responsibility for the condensed consolidated financial statements

The directors are responsible for the preparation and presentation of these condensed consolidated financial statements in accordance with the requirements of the JSE Limited Listings Requirements for preliminary reports, as set out in note 1 to the condensed consolidated financial statements, and the requirements of the Companies Act of South Africa, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s responsibility

Our responsibility is to express a conclusion on these condensed consolidated financial statements. We conducted our review in accordance with International Standard on Review Engagements (ISRE) 2410, which applies to a review of historical information performed by the independent auditor of the entity. This standard requires us to conclude whether anything has come to our attention that causes us to believe that the condensed consolidated financial statements are not prepared in all material respects in accordance with the applicable financial reporting framework. This standard also requires us to comply with relevant ethical requirements.

A review of financial statements in accordance with ISRE 2410 is a limited assurance engagement. We perform procedures, primarily consisting of making enquiries of management and others within the entity, as appropriate, and applying analytical procedures, and evaluating the evidence obtained.

The procedures performed in a review are substantially less than and differ in nature from those performed in an audit conducted in accordance with International Standards on Auditing. Accordingly, we do not express an audit opinion on these condensed consolidated financial statements.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the condensed consolidated financial statements of the Company for the twelve months ended 31 December 2018 are not prepared, in all material respects, in accordance with the requirements of the JSE Limited Listings Requirements for preliminary reports, as set out in note 1 to the condensed consolidated financial statements, and the requirements of the Companies Act of South Africa.




Ernst & Young Inc.
Ernest Adriaan Lodewyk Botha - Director
Registered Auditor
Chartered Accountant (SA)
102 Rivonia Road, Sandton
Johannesburg, South Africa
19 February 2019



Preliminary Condensed Financial Information for the year ended 31 December 2018 - www.AngloGoldAshanti.com
 
 
19

GROUP - INCOME STATEMENT

 

 
 
 
 
 
 
 
 
Six months

Six months

Year

Year

 
 
ended

ended

ended

ended

 
 
Dec

Dec

Dec

Dec

 
 
2018

2017

2018

2017

US Dollar million
Notes
Unaudited

Restated

Reviewed

Restated

 
 
 
 
 
 
Revenue from product sales
2
1,941

2,398

3,943

4,510

Cost of sales
3
(1,571
)
(1,948
)
(3,173
)
(3,736
)
(Loss) gain on non-hedge derivatives and other commodity contracts
 
(8
)
9

2

10

Gross profit
 
362

459

772

784

Corporate administration, marketing and other expenses
 
(38
)
(30
)
(76
)
(64
)
Exploration and evaluation costs
 
(56
)