Glossary of terms

Adjusted headline earnings (loss):
Headline earnings (loss) excluding unrealised non-hedge derivatives, fair value adjustments on the mandatory convertible bonds and the option component of the convertible bonds, adjustments to other commodity contracts and deferred tax thereon.
All injury frequency rate:
The total number of injuries and fatalities that occurs per million hours worked.
All-in sustaining costs:
During June 2013, the World Gold Council (WGC), an industry body, published a Guidance Note on the “all-in sustaining costs’’ metric, which gold mining companies can use to supplement their overall non-GAAP disclosure. ‘’All-in sustaining costs’’ is an extension of the existing ‘’cash cost’’ metric and incorporates all costs related to sustaining production and, in particular, recognises the sustaining capital expenditures associated with developing and maintaining gold mines. In addition, this metric includes the cost associated with the corporate office structures that support these operations, the community and rehabilitation costs attendant on responsible mining and any exploration and evaluation costs associated with sustaining current operations.‘’All-in sustaining $/oz’’ is arrived at by dividing the dollar value of the sum of these cost metrics by the ounces of gold sold.
Average number of employees:
The monthly average number of production and non-production employees and contractors employed during the year, where contractors are defined as individuals who have entered into a fixed-term contract of employment with a group company or subsidiary. Employee numbers of joint ventures represents the group’s attributable share.
Any potentially economic or saleable product that emanates from the core process of producing gold, including silver, uranium and sulphuric acid.
Capital expenditure:
Total capital expenditure on tangible and intangible assets which includes stay-in-business and project capital.
Carbon-in-leach (CIL):
Gold is leached from a slurry of ore with cyanide in agitated tanks and adsorbed on to carbon granules in the same circuit. The carbon granules are separated from the slurry and treated in an elution circuit to remove the gold.
Carbon-in-pulp (CIP):
Gold is leached conventionally from a slurry of ore with cyanide in agitated tanks. The leached slurry then passes into the CIP circuit where carbon granules are mixed with the slurry and gold is adsorbed on to the carbon. The gold-loaded carbon are separated from the slurry and treated in an elution circuit to remove the gold.
Companies Act:
Refers to the South African Companies Act, No 71 of 2008, as amended.
Contained gold:
The total gold content (tons multiplied by grade) of the material being described.
Cut-off grade (surface mines):
The minimum grade at which a unit of ore will be mined to achieve the desired economic outcome.
The decrease in the quantity of ore in a deposit or property resulting from extraction or production.
The process of accessing an orebody through shafts and/or tunnelling in underground mining operations.
Impure alloy of gold and silver produced at a mine to be refined to a higher purity, usually consisting of 85% gold on average.
A process of recovering gold from solution by means of electrolytic chemical reaction into a form that can be smelted easily into gold bars.
Operating profit (loss) before amortisation of tangible and intangible assets, retrenchment costs at the operations, impairment and derecognition of goodwill, tangible and intangible assets, impairment of investments, profit (loss) on disposal and derecognition of assets and investments, gain (loss) on unrealised non-hedge derivatives and other commodity contracts, write-off of stockpile and heap leach inventories to net realisable value plus the share of associates’ EBITDA, less profit (loss) from discontinued operations.
Total equity plus the mandatory convertible bonds. Where average equity is referred to, this is calculated by averaging the figures at the beginning and the end of the financial year.
Feasibility study:
A comprehensive design and costing study of the selected option for the development of a mineral project in which appropriate assessments have been made of realistically assumed geological, mining, metallurgical, economic, marketing, legal, environmental, social, governmental, engineering, operational and all other modifying factors, which are considered in sufficient detail to demonstrate at the time of reporting that extraction is reasonably justified (economically mineable) and the factors reasonably serve as the basis for a final decision to proceed with the development of the project. The overall confidence of the study should be stated.
Free cash flow:
Defined as post-tax operational cash flows less project capital and financing costs, but excluding cash flow impacts from acquisitions and disposals of material assets. It represents the group cash funding requirements or, alternatively, the cash available to service and repay debt and/or available for distribution to shareholders in the form of dividends.
Gold produced:
Refined gold in a saleable form derived from the mining process.
The quantity of gold contained within a unit weight of gold–bearing material generally expressed in grams per metric tonne (g/t) or ounces per short ton of ore (oz/t).
Dissolution of gold from crushed or milled material, including reclaimed slime, prior to adsorption on to activated carbon.
Life of mine (LOM):
Number of years for which an operation is planning to mine and treat ore, as taken from the current mine plan.
Metallurgical plant:
A processing plant designed to treat ore and extract gold and, in some cases, other valuable by-products.
A process of reducing broken ore to a size at which concentrating can be undertaken.
Mineral Resource:
A concentration or occurrence of solid material of economic interest in or on the Earth’s crust in such form, grade (or quality), and quantity that there are reasonable prospects for eventual economic extraction. The location, quantity, grade (or quality), continuity and other geological characteristics of a Mineral Resource are known, estimated or interpreted from specific geological evidence and knowledge, including sampling. Mineral Resources are sub-divided, in order of increasing geological confidence, into Inferred, Indicated and Measured categories (JORC, 2012).
Ore Reserve:
The economically mineable part of a Measured and/or Indicated Mineral Resource. It includes diluting materials and allowances for losses, which may occur when the material is mined or extracted and is defined by studies at prefeasibility or feasibility level as appropriate that include application of modifying factors. Such studies demonstrate that, at the time of reporting, extraction could reasonably be justified (JORC, 2012).
Ounce (oz) (troy):
Imperial measure of mass specifically used for precious metals and still the standard measure of mass in the gold industry. A kilogram is equal to 32.1507 troy ounces. A troy ounce is equal to 31.1035 grams.
Pay limit:
The grade of a unit of ore at which the revenue from the recovered mineral content of the ore is equal to the sum of total cash costs, closure costs, ore reserve development and stay–in–business capital. This grade is expressed as an in situ value in grams per tonne or ounces per short ton (before dilution and mineral losses).
Prefeasibility study:
A comprehensive study of the viability of a range of options for a mineral project that has advanced to a stage at which the preferred mining method in the case of underground mining or the pit configuration in the case of an open pit has been established, and an effective method of mineral processing has been determined. It includes a financial analysis based on realistic assumptions of technical, engineering, operating, economic factors and the evaluation of other relevant factors that are sufficient for a competent person, acting reasonably, to determine if all or part of the Mineral Resource may be classified as a Mineral Reserve. The overall confidence of the study should be stated. A prefeasibility study is at a lower confidence level than a feasibility study.
The solid product of chemical reaction by fluids such as the zinc precipitation referred to below.
Price received ($/oz and R/kg):
Attributable gold income including realised non-hedge derivatives divided by attributable ounces or kilograms sold.
An expression of labour productivity based on the ratio of ounces of gold produced per month to the total number of employees in mining operations.
Project capital:
Capital expenditure to either bring a new operation into production; to materially increase production capacity; or to materially extend the productive life of an asset.
In the South African context, reclamation describes the process of reclaiming slimes (tailings) dumps using high– pressure water cannons to form a slurry which is pumped back to the metallurgical plants for processing.
Recovered grade:
The recovered mineral content per unit of ore treated.
A gold–bearing sedimentary horizon, normally a conglomerate band, that may contain economic levels of gold. A reef can also be any significant or thick gold-bearing quartz vein.
The final purification process of a metal or mineral.
Defines the operational management divisions within AngloGold Ashanti Limited, namely South Africa, Continental Africa (Democratic Republic of the Congo, Ghana, Guinea, Mali, Namibia and Tanzania), Australasia (Australia), and the Americas (Argentina, Brazil and United States of America).
The process of reclaiming land disturbed by mining to allow an appropriate post–mining use. Rehabilitation standards are defined by country-specific laws, including but not limited to the South African Department of Mineral Resources, the US Bureau of Land Management, the US Forest Service, and the relevant Australian mining authorities, and address among other issues, ground and surface water, topsoil, final slope gradient, waste handling and re-vegetation issues.
In the South African context, retreatment describes the process of reclaiming slimes (tailings) dumps using high-pressure water cannons to form a slurry which is pumped back to the metallurgical plants for processing.
Return on net capital:
Adjusted headline earnings before net finance costs and hedge buy–back costs expressed as a percentage of average net capital employed.
Return on equity:
Adjusted headline earnings before finance costs on equity including the mandatory convertible bonds and hedge buy–back costs expressed as a percentage of average equity.
A vertical or subvertical excavation used for accessing an underground mine; for transporting personnel, equipment and supplies; for hoisting ore and waste; for ventilation and utilities; and/or as an auxiliary exit.
A pyro-metallurgical operation in which gold precipitate from electro-winning or zinc precipitation is further separated from impurities.
Stay-in-business capital:
Capital expenditure to extend useful lives of existing production assets. This includes replacement of vehicles, plant and machinery, ore reserve development, deferred stripping and capital expenditure related to financial benefit initiatives, safety, health and the environment.
The process of excavating ore underground.
Stripping ratio:
The ratio of waste tonnes to ore tonnes mined calculated as total tonnes mined less ore tonnes mined divided by ore tonnes mined.
Sustaining capital expenditure:
Total capital expenditure less any capital expenditure that relates to project capital expenditure and new investment/projects at all of our mines, whether they are in production or development stage.
Finely ground rock of low residual value from which valuable minerals have been extracted.
Tailings storage facilities (TSF):
Facilities designed to store discarded tailings.
Used in metric statistics. Equal to 1,000 kilograms (SI unit of mass).
Total cash cost:
Total cash cost includes site costs for all mining, processing and administration, reduced by contributions from by-products and are inclusive of royalties and production taxes. Amortisation, rehabilitation, corporate administration, retrenchment, capital and exploration costs are excluded. Total cash costs per ounce are the attributable total cash costs divided by the attributable ounces of gold produced.
Total cash cost margin:
Average price received ($/oz) minus the total cash cost ($/oz), divided by the average price received ($/oz).
Total production cost:
This is the total cash cost plus amortisation, retrenchment, rehabilitation and other non–cash costs. It excludes corporate administration and exploration costs. Total production costs per ounce are the attributable total production costs divided by the attributable ounces of gold produced.
Material that contains insufficient mineralisation for consideration for future treatment and, as such, is discarded.


United States dollars
A$ or AUD
Australian dollars
Association of Mineworkers and Construction Union
All injury frequency rate
Argentinean peso
Artisanal and small scale mining
Australian Securities Exchange
AngloGold Ashanti Technology and Innovation Consortium
Contained gold
Black Economic Empowerment
Business Process Framework
Bonus Share Plan
Brazilian real
Community-based organisations
Cripple Creek & Victor
Chess Depositary Interests
Chief Executive Officer
Conflict-Free Gold Standard
Chief Financial Officer
Chief Operating Officer
Disclosure on management approach
Department of Mineral Resources (South Africa)
Democratic Republic of the Congo
Extractive Industries Transparency Initiative
AngloGold Ashanti Energy Management Systems
Enterprise resource planning
Exchange traded fund
Bokomoso Employee Share Ownership Plan
European Union
Executive Vice President
Fatal injury frequency rate
Grams per tonne
Ghanaian Depositary Share
Ghana Stock Exchange
International Council on Mining and Metals
Australasian Code for Reporting Exploration Results, Mineral Resources and Ore Reserves
Johannesburg Stock Exchange or JSE Limited
King III
King Code of Governance Principles and the King Report on Governance, which came into effect on 1 March 2010
Key performance indicator
London Stock Exchange
Life of mine
Lost-time injury frequency rate
Long-term incentive plan
M or m
Metre or million, depending on the context
Mine life extension project (at CC&V)
Million ounces
Million tonnes or tons
Million tonnes or tons per annum
Mine waste solutions
Non-governmental organisation
National Union of Mineworkers
New York Stock Exchange
Ounces (troy)
Ounces per ton
Ounces per total employee costed
Petajoule = million Gigajoules (GJ)
R, ZAR or Rand
South African rands
Remedial Action Plans
Resettlement Policy Framework
Semi-autogeneous grinding
South African Code for the Reporting of Mineral Resources and Mineral Reserves 2007 Edition
United States Securities and Exchange Commission
Search for common ground
Social and labour plans
Systems for people
Small medium and micro sized enterprises
Special mining licence
Tons (short) or tonnes (metric)
Tonnes or tons per annum
Tailings storage facility
United Association of South Africa
United Nations
United Nations Global Compact
US/USA/United States
United States of America
Ventersdorp Contact Reef
Voluntary Principles on Security and Human Rights
World Gold Council