Safety

Safety remains our highest priority. Measures are in in place to continually improve our safety performance. We have enhanced operating and safety systems and technologies, coupled with initiatives to ensure that every person in AngloGold Ashanti placing a greater focus on identifying and avoiding safety hazards and managing risk.

The improvement in our safety performance – 36% fewer fatalities year-on-year – reflects the effectiveness of these controls.

Employees

Our strategy is based on a strong foundation built on safe production and our ability to attract and retaining the right people. We aim to improve the ways in which we remunerate and incentivise our employees to better deliver on our strategy. The proposal to enhance our incentive structure will be presented to the shareholders at the annual general meeting.

Free cash flow

We delivered nearly double the 2015 free cash flow, after after $30m in once-off costs to redeem the high-yield bonds. This performance was assisted by a strong turnaround in production in the second half of the year, the higer gold price and lower interest payments

This reflects a sucessful delivery on the company's strategy which is focused on generating free cash flow on a sustainable basis.

Costs

Costs were within guidance as we continued to demonstrate cost discipline, supported by the benefits of weaker currencies which in some jurisdictions were offset by an increase in capital expenditure, inflation and exploration costs. This performance was set against the backdrop of a 15% decline in grade, and safety-related stoppages in South Africa, which in turn impacted production.

In 2016, the all-in sustaining costs for the group was $986/oz.

Capital expenditure

Capital discipline remains a key focus for AngloGold Ashanti, along with maintaining a flexible balance sheet and strong liquidity. In 2016, capital spend was largely on focused asset improvements in Australia and Brazil, with lower investments in the South Africa and Continental Africa region. In 2017, capital expenditure is expected to increase as we invest in high-return, low-capital projects.

Environment

Responsible environmental stewardship is a key focus areas in maintaining our licence to operate. During the year we reduced the number of reportable environmental incidents to one – down 75% year-on-year, and a 97% improvement on 2011.

Community

We aim to create sustainable value for all our stakeholders, which includes building constructive relationships with communities, and essential element in maintaining our social licence to operate. In 2016 we contributed $20.2m to community investment projects and spent $2.0bn with local suppliers.