INTEGRATED REPORT 2013

Improve portfolio quality

GOLD PRICE PERFORMANCE IMPACTS ON BUSINESS AND STRATEGY

A sharp decline in the gold price in the first half of 2013 called for quick, decisive action from management to promote profitability in the near term while maintaining long-term optionality in the business

Maintain long-term optionality

Focus has narrowed for what was historically an expansive exploration programme, leading to a withdrawal from more than a dozen countries and shifting focus to the most prospective regions in the portfolio – Australia, Colombia and Guinea.

“We continue to invest in our Technology and Innovation Consortium to develop new underground mining technology in South Africa.”

Ensure financial flexibility

In keeping with a prudent approach to managing the balance sheet and reducing risk, AngloGold Ashanti raised $1.25bn in July through the sale of seven-year bonds, using the proceeds to refinance the convertible bond which was due to mature in May 2014.

“The debt issue alleviated refinancing risk and improved the debt maturity profile of the business.”

Optimise overhead, costs and capital expenditure

Revenue enhancement efforts shifted during the year to improving the profitability of gold production and bringing two new world class operations, Tropicana and Kibali, into production.

“An extensive organisational redesign took place creating a leaner leadership structure with more direct accountability.”

Focus on people, safety and sustainability

While work to restructure the business continued at a strong pace, safety remained the number one priority. Great strides have been achieved in recent years to improve the culture of safety

“In 2013, the number of fatalities decreased by 56% year-on-year to eight, the lowest number recorded in AngloGold Ashanti’s history.”