One-year forecast

AngloGold Ashanti’s attributable gold production for 2014 is estimated at between 4.2Moz and 4.5Moz. This forecast takes into account the planned production from the two new operations Kibali and Tropicana and the disposal of Navachab, which is expected to be finalised by mid-year. Total cash costs are forecast to be between $740/oz and $790/oz for the year.

Both production and total cash costs estimates will be reviewed quarterly, in light of any labour related-issues and safety-related stoppages that might be experienced in South Africa, together with any other unforeseen factors.

For 2014, capital expenditure is anticipated to be $1.35bn to $1.45bn, compared with $1.99bn in 2013. AngloGold Ashanti may not be able to reach these targets. Refer to the Forward-looking Statements and to the section on “Risk factors” in the prospectus supplement to AngloGold Ashanti’s prospectus, dated 17 July 2012, that was filed with the United States’ SEC on 26 July 2013. This one-year forecast assumes the existing asset base with no changes to the portfolio other than the sale of Navachab. AngloGold Ashanti will continue to review the asset portfolio which may impact on this forecast.

Forecast
For the year ending
31 December 2014
Expected
production
000oz
Expected total cash costs
(1) $/oz
Expected all-in
sustaining costs
(1) $/oz
Expected capital
expenditure
(1) (2) $m
South Africa 1,206 – 1,292 768 – 820 998 – 1,047 305 – 328
South Africa 1,206 – 1,292 768 – 820 998 – 1,047 305 – 328
Continental Africa 1,474 – 1,579 786 – 839 1,050 – 1,101 539 – 579
Ghana 428 – 458 1,013 – 1,081 1,441 – 1,511 212 – 228
Guinea 215 – 231 921 – 984 1,052 – 1,103 32 – 34
Mali 136 – 145 1,103 – 1,177 1,240 – 1,301 15 – 16
Namibia 29 – 31 710 – 758 844 – 885 1 – 1
Tanzania 415 – 445 567 – 605 922 – 967 132 – 142
DRC 251 – 269 488 – 520 502 – 526 147 – 158
Americas 940 – 1,007 714 – 762 990 – 1,039 419 – 452
Argentina 224 – 240 736 – 786 974 – 1,022 59 – 64
Brazil 506 – 542 652 – 696 989 – 1,037 177 – 191
Colombia - - - 5 – 5
United States of America 210 – 225 838 – 895 1,010 – 1,059 178 – 192
Australasia 580 – 622 711 – 760 894 – 937 80 – 86
Australia 580 – 622 711 – 760 894 – 937 80 – 86
Other - - - 4 – 5
AngloGold Ashanti 4,200 – 4,500 740 – 790 1,025 – 1,075 1,347 – 1,450
  1. (1) Based on the following assumptions: R11.00/$, $0.85/A$, BRL2.45/$ and ARS peso 6.50/$; Brent crude at $100 per barrel.
  2. (2)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 2014
Depreciation and amortisation $800m
Corporate, marketing and capacity building costs $120m – $140m
Expensed exploration and study costs (including equity-accounted investments) $150m – $175m
Interest and finance costs (income statement) $290m
Interest and finance costs (cash flow) $250m
Number of shares in issue at 31 December 2013 403m