STRATEGIC FOCUS AREAS AND key performance indicators

Objectives and strategy
Our long-term objective is to create value for shareholders, employees and business and social partners by safely and responsibly exploring for and mining gold. In the short and medium term, we aim to deliver sustainable improvements in cash flow and returns to all our stakeholders.

We aim to achieve these objectives by maximising sustainable free cash flow from our portfolio, while maintaining the integrity of the business and focusing on delivery.

The five strategic focus areas, or building blocks, that support the achievement of our delivery targets in the short, medium and long term, are as follows:

OUR FIVE
STRATEGIC
FOCUS AREAS


Our five strategic focus areas [info graphic]

Unpacking our strategy

The table below relates AngloGold Ashanti’s strategy to its key performance indicators:

Focus on people, safety and sustainability

People – employees and communities – are our business. We focus on employing, deploying and developing the right people, and on providing them with meaningful employment and career development opportunities. We aim to structure the organisation to support operational excellence.

Safety remains our first priority, and our aim is to eliminate fatalities and injuries.

We will continue to earn our social licence to operate by addressing and mitigating the social, economic and environmental impacts of our operations, and by creating a positive sustainable legacy. We are mindful of the need to balance short-term financial objectives with long-term sustainability outcomes. We seek to leverage expertise and work collaboratively to achieve the best possible outcomes for the company and for our partners in government, labour, the communities and civil society in which we operate.

Ensure financial flexibility

We continue to optimise our balance sheet by diversifying our sources of funding and reducing debt, if appropriate, to ensure the financial flexibility required to support our overall strategy.

Optimise overhead, costs and capital expenditure

We aim to optimise all spending – capital expenditure, operating costs, expensed exploration and overheads – to provide a competitive all-in sustaining cost of production. There is a drive at all levels of the organisation to eliminate ’cost creep,’ regardless of market conditions.

Key performance indicator (KPI)

Improve portfolio quality

A key objective is to improve the quality and diversity of our portfolio. In 2014, we aim to achieve this by adding between 550,000oz and 600,000oz to production – from new operations Tropicana and Kibali – at costs that are lower than the group average, and by optimising mine plans to remove marginal or loss-making production where appropriate.

Continuing business improvement initiatives together with Project One will emphasize the quality rather the quantity of ounces produced.

Key performance indicator (KPI)

Maintain long-term optionality

We will continue to invest in and develop new technology that has the potential to transform access to deep-level underground Mineral Resources in South Africa. We will continue to seek cost-effective opportunities both around our existing gold mines and in new regions, for example, the Tropicana belt in Australia, Guinea’s Siguiri belt and a collection of highly prospective areas in Colombia.

Key performance indicator (KPI)