SUPPORTING OUR STRATEGY for sustainable cash flow improvements and returns

This Integrated Report, the primary document in our suite of reports, provides a concise overview and explanation of the performance of AngloGold Ashanti in terms of our strategic objectives and the related outlook for the company.

Both financial and non-financial performance are considered.

Directors’ statement of responsibility


Production of 3.95Moz came in at the top end of our revised guidance while all-in sustaining costs of $910/oz and all-in costs of $1,001/oz were both better than guidance.

  • Safety

    2015 group AIFR

    7.18(2014: 7.36)

  • Production

    Gold produced

    3.9Moz(2014: 4.4Moz)

  • Employees

    People employed

    52,266(2014: 58,057)

  • Free cash flow

    Annual free cash flow

    $141m(2014: ($112m))

  • Costs

    All-in sustaining costs

    $910/oz(2014: 1,020/oz)

  • Capital expenditure


    $857m(2014: $1.2bn)

  • Environment

    Reportable environmental incidents

    4 incidents(2014: 5 incidents)

  • Community

    Community investment

    $15.2m(2014: $14.8m)


Both the AIFR and the LTIFR for 2015 are lower that 2014. Safety remains our highest priority and our biggest challeng as we relentlessly persue effective controls to improve our safety performance.

2015 group AIFR

7.18(2014: 7.36)

Safety performance by region

Free cash flow

Active cost management along with strict capital discipline allowed us to generate free cash flow, despite the lower gold price environment. This is a marked improvement on a cash outflow of $112m in 2014.

Annual free cash flow


Our strategy is based on a strong foundation built on safe production, and attracting and retaining the industry's best people. To this end, a redesign of the incentive structure is underway to include a greater focus on and further tightening of the performance-related measures we use to assess and drive the business.

Number of employees


Our focus remains on high-margin ounces rather than on absolute production levels. We have met annual production and cost targets for three consecutive years. We remain one of the global gold industry's most geographically diversified companies.

Production (continuing and discontinued operations)
Contribution to production by region 2015


While cost reduction and efficiency measures provided a buffer against local inflation, tailwinds from weakening currencies and fuel prices helped mitigate an 8% drop in the gold price and lower production.

All-in sustaining costs by region

Capital expenditure

Our 2015 results show the benefits of a strong ongoing focus on costs and capital allocation. Capital expenditure decreased by 29% compared to 2014, attributable to favourable exchange rate movements in South Africa, Brazil, Argentina and Australia, as well as planning and design changes at certain sites and fundamental cost savings.

Capital expenditure by region


In line with our commitment to responsible environmental stewardship and to minimising our impact on the environment, we have reduced the number of reportable environmental incidents to four in 2015 – down 20% year-on-year and an 85% improvement from 2011.

Number of reportable environmental incidents


Maintaining positive relations with communities is essential to maintaining our social licence to operate. In line with the need to understand and respond to communities socio-economic challenges, we contributed $16.8m* to community investment projects and spent $2.1bn with local suppliers.

Community investment by region

* Includes equity-accounted investments.



AngloGold Ashanti’s core strategic focus is to generate sustainable free cash flow improvements and returns. We do this by focusing on our five core strategic focus areas.

We believe that these building blocks will help ensure long-term value creation for shareholders, employees and other stakeholders in the business.

OUR CORE STRATEGIC FOCUS AREAS Focus on people, safety and sustainability Supporting our strategy for sustainable cash flow improvements and returns Ensure financial flexibility Improve portfolio quality Maintain long-term optionality Optimise overhead, costs and capital expenditure

The AngloGold Ashanti investment case

  1. 1

    HIGH-QUALITY portfolio of long-life, pure gold assets with strong leverage to energy and currencies

  2. 2

    Transparent, decisive management team, FOCUSED ON DELIVERY and shareholder value

  3. 3

    PRIORITISING MARGINS over volumes – focus on cost and capital discipline

  4. 4

    Decisive STRATEGIC RESPONSE to a lower gold price

  5. 5

    BALANCE SHEET FLEXIBILITY; appropriate liquidity, covenant and maturities

Business context

AngloGold Ashanti’s operating and business activities extend across the full spectrum of the goldmining production pipeline – from exploration through to processing, production and sales.

We have reviewed our business model in light of the environment within which we operate, related material issues, risks and stakeholders.

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<IR>Business context


Regional reviews

Our portfolio of 17 mines in nine countries, comprises long-life, relatively low-cost assets with differing ore body types. We report on our operations by region below.

Americas Colombia 3 Argentina 1 Brazil 2 Americas Continental Africa Guinea 4 Mali 5 Ghana 6 DRC 7 Tanzania 8 Continental Africa South Africa South Africa 9 South Africa Australasia Australia 10 Australasia