Non-GAAP disclosure – summary

SUMMARY

From time to time AngloGold Ashanti Limited may publicly disclose certain “Non-GAAP” financial measures in the course of its financial presentations, earnings releases, earnings conference calls and otherwise.

The group uses certain Non-GAAP performance measures and ratios in managing the business and which may provide users of this financial information with additional meaningful comparisons between current results and results in prior operating periods. The Non- GAAP financial measures are used to adjust for fair value movements on the convertible and mandatory convertible bonds as well as the highly volatile marked-to-market movements on unrealised non-hedge derivatives and other commodity contracts, which can only be measured with certainty on settlement of the contracts. Non-GAAP financial measures should be viewed in addition to, and not as an alternative to, the reported operating results or any other measure of performance prepared in accordance with IFRS. In addition, the presentation of these measures may not be comparable to similarly titled measures that other companies use. The Non-GAAP metrics are as follows:

			2014	2013	2012
1	Headline (loss) earnings adjusted for unrealised non-hedgederivatives, other commodity contracts and fair value adjustment on the convertible and mandatory convertible bonds (adjusted headline earnings)	$m	(1)	599	988
	Adjusted headline (loss) earnings per ordinary share	US cps	–	153	255
2	Gross profit adjusted for unrealised non-hedge derivatives and other commodity contracts (adjusted gross profit)	$m	1,028	1,351	2,389
3	Price received
	– Gold sold	000oz	4,454	4,093	3,953
	– Revenue price per unit	$/oz	1,264	1,401	1,664
4	Total cash cost and production cost
	– Gold produced	000oz	4,432	4,105	3,944
	– Total cash cost per unit	$/oz	787	830	829
	– Total production cost per unit	$/oz	1,014	1,054	1,054
5	All-in sustaining costs
	– Gold sold	000oz	4,454	4,093	3,953
	– All-in sustaining cost per unit (excluding stockpile write-offs)	$/oz	1,026	1,174	1,251
6	Adjusted EBITDA (1)	$m	1,665	1,667	2,529
	(1)Adjusted EBITDA is prepared in terms of the formula set out in the revolving credit agreements
7	Interest cover	times	7	7	14
8	Equity
	Total equity per statement of financial position	$m	2,871	3,107	5,494
	Mandatory convertible bonds		–	–	588
	Equity		2,871	3,107	6,082
	Capital expenditure in respect of projects not in production stage		–	(1,346)	(843)
	Adjusted equity	$m	2,871	1,761	5,239
9	Net capital employed
	Shareholders’ equity per statement of financial position	$m	2,845	3,079	5,473
	Adjusted to exclude:
	– Comprehensive income		(98)	(102)	(135)
	– Actuarial losses		40	25	89
			2,787	3,002	5,427
	Deferred taxation		567	579	1,084
	Adjusted to exclude:
	– Deferred tax on derivatives and other comprehensive income		1	–	–
	– Deferred tax on actuarial losses		6	13	40
	Adjusted equity		3,361	3,594	6,551
	Non-controlling interests		26	28	21
	Borrowings – long-term portion		3,498	3,633	2,724
	Borrowings – short-term portion		223	258	859
	Capital employed		7,108	7,513	10,155
	Cash and cash equivalents		(468)	(648)	(892)
	Net capital employed		6,640	6,865	9,263
	Capital expenditure in respect of projects not in production stage		–	(1,346)	(843)
	Adjusted net capital employed	$m	6,640	5,519	8,420
10	Net debt	$m	3,133	3,105	2,061
11	Net asset value	US cps	711	770	1,580
12	Net tangible asset value	US cps	655	704	1,498
13	Return on equity
	Adjusted headline (loss) earnings (note 1)	$m	(1)	599	988
	Finance costs on the mandatory convertible bonds		–	26	37
	Adjusted headline (loss) earnings excluding finance costs on
	mandatory convertible bonds	$m	(1)	625	1,025
	Adjusted equity (note 8)	$m	2,871	1,761	5,239
	Average equity (1)	$m	2,316	3,500	5,465
	(1) Equity for 2011 amounted to $5,692m
	Return on equity	%	–	18	19
14	Return on net capital employed
	Adjusted headline (loss) earnings (note 1)	$m	(1)	599	988
	Finance costs		278	296	231
	Interest received		(24)	(39)	(43)
	Adjusted headline earnings excluding net finance costs	$m	253	856	1,176
	Net capital employed (note 9)	$m	6,640	5,519	8,420
	Average net capital employed (1)	$m	6,080	6,971	7,932
	(1) Net capital employed for 2011 amounted to $7,444m
	Return on net capital employed	%	4	12	15
15	Market capitalisation
	Number of listed ordinary shares in issue at year-end (millions)		404	403	383
	Closing share price as quoted on the New York Stock Exchange		8.70	11.72	31.37
	Market capitalisation	$m	3,515	4,727	12,025
16	Average number of employees
	South Africa		29,511	32,406	34,186
	Continental Africa		16,070	16,625	16,621
	Australasia		832	925	494
	Americas		8,588	8,374	7,896
	Other, including corporate and non-gold producing subsidiaries		3,056	8,104	6,625
			58,057	66,434	65,822