Operations – regional review

In 2013, AngloGold Ashanti's global portfolio of operating assets, including underground and deeplevel mines, open-pit mining operations and one surface operation, produced an attributable 4.11Moz of gold (2012: 3.94Moz) as well as 1.38Mlb of uranium (2012: 1.21Mlb) and 3.30Moz of silver (2012: 2.36Moz).

Location of AngloGold Ashanti’s operations [map]
Location of AngloGold Ashanti’s operations

Americas

  1. Argentina

    Cerro Vanguardia (92.5%)

  2. Brazil

    Serra Grande
    AGA Mineração

  3. United States

    Cripple Creek & Victor (CC&V)

For a more detailed account of performance by operation, refer to the Operational Profiles 2013.

CONTINENTAL
AFRICA

  1. Guinea

    Siguiri (85%)

  2. Mali

    Morila (40%) (4)
    Sadiola (41%)
    Yatela (40%)

  3. Ghana

    Iduapriem
    Obuasi

  4. DRC

    Kibali (45%) (4)

  5. Tanzania

    Geita

  6. Namibia

    Navachab (2)

Australasia

  1. Australia

    Sunrise Dam
    Tropicana (70%)

SOUTH
AFRICA

  1. South Africa
    Vaal River

    Great Noligwa
    Kopanang
    Moab Khotsong

    West Wits

    Mponeng
    TauTona (3)

    Surface Operations (1)

Percentages indicate the ownership interest in AngloGold Ashanti, whether held directly or indirectly. All operations are 100%-owned unless otherwise indicated.

  1. (1) Includes MWS for purposes of this report. It is operated and managed as a separate cash generating unit.
  2. (2) On 10 February 2014, AngloGold Ashanti announced that it had signed a binding agreement to sell Navachab, subject to certain conditions.
  3. (3) As from 1 January 2013, TauTona and Savuka were operated and managed as one entity and accordingly combined under TauTona.
  4. (4) Both Morila and Kibali are managed and operated by Randgold Resources Limited.

GROUP PRODUCTION
HAS INCREASED


Growth in annual gold production was achieved for the first time in almost a decade, with the contribution of new lower cost ounces from Tropicana and Kibali. The new production in the portfolio provides flexibility to rationalise marginal production as the focus continues on the active management of overhead and operating costs, so as to create sustainable free cash flow.

Despite a 16% decline in the gold price received for the year, the company recorded solid operational performance for the full year 2013 reflecting a 4% increase in production to 4.11Moz, and a decrease in all-in sustaining costs of roughly 6% compared with 2012. The year-on-year improvement in production marks the first increase in annual production for AngloGold Ashanti in nine years.

Operating performance for the year recovered from strike activity in South Africa in 2012. Substantial improvements in both direct operating and overhead costs, and the introduction of commercial production from two new, world-class, low-cost mines in the fourth quarter, contributed to this improved operating performance.

Notably, 2013 marked the best year of safety performance in AngloGold Ashanti history, providing an anchor for solid production and cost results amidst a challenging gold price environment, wage negotiations in South Africa, and significant restructuring of corporate and operating costs.

Production of 4.11Moz was achieved at a total cash cost of $830/oz, compared to 3.94Moz at $829/oz the previous year. Group production was in line with revised annual guidance for the year of 4.0Mozs – 4.1Mozs at a total cash cost of between $815/oz and $845/oz. The all-in sustaining cost (excluding stockpile write-offs) for the group in 2013 was $1,174/oz, down from $1,251/oz in 2012.

The attributable Ore Reserve at year-end 2013 was 67.9Moz, down from 74.1Moz at 31 December 2012. This decrease reflects the changes in economic assumptions due to the lower gold price, which had the most significant impact on Geita and CC&V.

The attributable Mineral Resource (inclusive of the Ore Reserve) at 31 December 2013 decreased to 233.0Moz, from 241.5Moz at 31 December 2012, reflecting the reduced gold price and the resultant revision of Mineral Resource models, increased cut-off grades. This was partially offset by a 3.2Moz increase from exploration at Kibali and La Colosa.

Mineral Resources and Ore Reserves at year-end were calculated at $1,100/oz and $1,600/oz, respectively, compared to $1,300/oz and $2,000/oz, respectively, in 2012.


Regional cost comparison and AIFR [graph]

The group employed an average of 66,434 people for the year, made up of 48,159 permanent employees (72%) and 18,275 contractors (28%), with an overall productivity rate of 8.14oz/TEC and at a total cash cost of $830/oz.


Gold production – by region [graph]

Capital expenditure – by region [graph]

Distribution of employees – by region [graph]

2013 reflected not only substantial improvements in costs, but marked the group’s best safety performance on record.

Environmental incidents [graph] GHG emissions intensity [graph]
Energy use intensity [graph] Water use intensity [graph]