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Annual report suite 2012

Five-year targets and performance scorecard

Our targets

In 2010, the AngloGold Ashanti board agreed a set of five-year targets for the period 2011 to 2015. Our targets will drive the creation of real and long-term beneficial relationships with social and business partners within the company and the communities in which we operate. These targets relate to key areas of performance and define our vision of leadership in our sector. One target, that relating to social performance, was reconsidered as we sought to identify and report on meaningful and quantifiable measures of impact. Consequently, we have not reported on these targets here. We expect to advise on these in the year ahead.

These five-year targets – listed below – are aligned with our strategy which is discussed on Our strategic focus areas. AngloGold Ashanti may not be able to reach these targets. Refer to the “Forward-looking statements” of this report and to the section entitled “Understanding and mitigating our risks”.

FS Also refer to the page entitled “Risk factors related to AngloGold Ashanti’s suite of 2012 reports”.

Five-year targets (2011 to 2015)
Focus area Five-year delivery target Key performance indicator


All injury frequency rate (AIFR) of less than 9 per million hours worked AIFR

Production volumes

Between 5.4Moz and 5.6Moz gold produced by 2015 Total gold production (Moz)


20% improvement in productivity (base year 2010) Productivity per total employee costed (oz/TEC)

Total cash costs

20% decrease in real unit costs (excluding mining inflation, royalty and fuel price impact) (base year 2010) Total cash costs ($/oz)

Financial performance

Delivery of returns to shareholders of 15% through the cycle Shareholder returns

Environmental performance

30% reduction in reportable incidents (base year 2010) Number of reportable environmental incidents

Our performance scorecard

As we have completed the second year into our target period, we report back to stakeholders on our performance in the following scorecard.

Target Progress KPI Performance in 2012


To achieve an AIFR of less than 9 per million hours worked, we must reduce our AIFR by 34% by 2015. Base: Actual three-year rolling average 2008 to 2010 of 13.68 per million hours worked

Actual 2012: 7.72 per million hours worked
AIFR (per million hours worked) [graph]

Production volumes:

To produce between 5.4Moz and 5.6Moz of gold by 2015, we must increase production by at least 20% by 2015. Base: 4.51Moz in 2010
Actual 2012: 3.94Moz
Production (Moz) [graph]
Production in 2012 was adversely impacted by the unprotected strike in South Africa, as well as an increased number of safety-related stoppages. Expected future growth in production to come from Tropicana, Kibali and CC&V. The 2015 production target will be affected by asset sales as well as a decision taken in early 2013 to focus on higher margin areas in South Africa.


To achieve a 20% improvement in productivity (oz/TEC), we must increase productivity to
10.98oz/TEC by 2015.
Base: 9.15oz/TEC in 2010
Actual 2012: 8.07oz/TEC
Productivity (oz/TEC) [graph]
The lower productivity in 2012 is primarily as a result of decreased South African production volumes and lower grades from underground operations.

Total cash costs:

To achieve a 20% improvement in real unit costs by 2015, we must reduce real unit costs to $510/oz by 2015. Base: $638/oz

Actual 2012: $862/oz* ($693/oz excluding mining inflation, royalty impact)
Total cash costs [graph]
Cash cost performance in 2012 was adversely impacted by lower gold production among other factors. We expect efficient cost control measures and lower cost ounces from growth projects to improve the level of cost performance (in real terms) going forward.

Financial performance:

To achieve a return on equity of 15% through the cycle to 2015. Base: 20%

Actual 2012: 18%
Return on equity [graph]
Return on equity in 2012 is lower than 2011 due to reduced earnings arising mainly from the aforementioned operational issues in South Africa and lower earnings.

Environmental performance:

To achieve a 30% reduction in reportable incidents, we must reduce the number of reportable environmental incidents to less than 19 a year by 2015. Base: 27 environmental incidents reported in 2010

Actual 2012: 16 environmental incidents reported in 2012.

Five-year target was met in two years.
Environmental incidents [graph]

Social performance:

Our social performance targets are under development. We expect to report on these in 2013.

OS See our Sustainability Report for a detailed account of our performance.