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Looking forward: One year forecast

2012 PRODUCTION TARGET OF 4.3Moz TO 4.4Moz

One year forecast – 2012

Below, we provide our best current estimates for 2012 for production, expected total cash costs and expected capital expenditure by country of operation. We have also detailed our five-year strategic targets and the key performance key indicators against which we will measure our performance and report in next year’s report. Finally, in this section we discuss our approach to closure and detail the current expected liabilities and provisions, as these form an integral part of our planning for the future.

Although we believe that the expectations reflected in this section are reasonable, we can give no assurances that these will materialise or prove to be correct. Because these forecasts are based on assumptions or estimates and are subject to risks and uncertainties, the actual results or outcomes could differ materially from those set out here. For a discussion of some of these risks and uncertainties, refer to the ‘Forward-looking statements’ of this report, to the section titled ‘Risk review’ of this report and to the section titled ‘Risk management and risk factors’ in the Annual Financial Statements.

AngloGold Ashanti’s annual production guidance for 2012 is 4.3Moz to 4.4Moz. Total cash costs are estimated at $780/oz to $805/oz. Both the production and total cash cost estimates will be reviewed quarterly, in the light of the safety-related stoppages and any other unforeseen factors.

Capital expenditure for 2012 is estimated to range between $2.2bn and $2.3bn.

Forecast
for the year ended 31 December 2012 Production 000oz Expected total cash cost $/oz (1) Capital expenditure $m(3)
South Africa      
South Africa (2) 1,638 – 1,676 714 – 737 592 – 619
Continental Africa      
Ghana 524 – 536 905 – 933 306 – 320
Guinea 203 – 208 1,056 – 1,090 53 – 55
Mali 216 – 221 979 – 1,010 49 – 51
Namibia 80 – 82 730 – 753 12
Tanzania 472 – 483 682 – 704 80 – 83
DRC 370 – 388
Americas      
Argentina 216 – 221 545 – 562 57 – 59
Brazil 469 – 480 706 – 728 228 – 238
United States of America 234 – 240 633 – 653 75 – 78
Australasia      
Australia 249 – 255 1,236 – 1,275 308 – 323
Other 70 – 74
AngloGold Ashanti 4,300 – 4,400 780 – 805 2,200 – 2,300
  1. (1) Based on the following assumptions: R7.40/$, A$1.01/$, BRL1.70/$ and Argentinean peso 4.43/$; Brent crude at $110 per barrel.
  2. (2) In South Africa, production assumes a stable supply of power from Eskom at 62.40c/Kwh.
  3. (3) Capital expenditure is managed in line with earnings and cash flows and may fluctuate accordingly. Forecast capital expenditure for operations with minorities is reported at 100%. For entities which are equity accounted, the forecast capital spend is the attributable share.
Other illustrative estimates
  Outlook 2012
Depreciation and amortisation $880m
Corporate marketing, Project ONE and project development and capacity building costs $315m
Expensed exploration (including equity-accounted associates and joint ventures) $230m
Exploration prefeasibility costs (including equity-accounted associates and joint ventures) $150m
Interest and finance costs (income statement) (1) $195m
Interest and finance costs (cash flow) $140m
Number of shares qualifying for basic EPS at 31 December 2011 386m
  1. (1) Includes coupon on mandatory convertible bonds.