Integrated Report 2016

Highlights of the year

Given the strong turnaround in production in the second half of the year, AngloGold Ashanti again generated strong cash flows in 2016, further strengthening the balance sheet and improving flexibility.


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.

Fatalities [Chart]


Production was within guidance provided for the year with a strong turnaround in the second half of the year. Our focus remains on high-margin, quality ounces rather than on absolute volumes.

We will continue to carefully evaluate every ounce in our future plans against our margin and return criteria, as we strengthen our efforts to unlock value from our asset portfolio.

Annual production Continuing and discontinued operations (Moz)
Annual production [Chart]
Contribution to production By region 2016 (%)
Contribution to production [Chart]


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.

Number of employees
Number of employees[Chart]

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.

Annual free cash flow ($m)
Annual free cash flow [Chart]


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.

All-in sustaining costs By region ($/oz)
All-in sustaining costs [Chart]

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.

Capital expenditure By region 2016 (%)
Capital expenditure [Chart]


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.

Number of reportable environmental incidents
Number of reportable environmental incidents [Chart]


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.

Community investment By region 2016
Community investment [Chart]


Our core strategic focus is to generate sustainable cash flow improvements and returns by focusing on five key areas. These focus areas will drive our plans for inward investment in 2017 to deliver better quality production that will add to margins, extend mine lives and also shape the portfolio in the longer term.

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


  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 volume; focus on cost and capital discipline
  4. 4.

    Decisive STRATEGIC RESPONSE to lower gold price; business plans adjusted and exploration curtailed
  5. 5.

    BALANCE SHEET FLEXIBILITY; appropriate liquidity, covenant and maturities
  6. 6.

    WELL-DEVELOPED ENGAGEMENT model ensures strong stakeholder relationships and licence to operate

Business model

To create value for our shareholders, our employees and our business and social partners through safely and responsibly exploring, mining and marketing our products. Our primary focus is gold, but we will pursue value creating opportunities in other minerals where we can leverage our existing assets, skills and experience to enhance the delivery of value.

Shareholder information

For the year ended 31 December 2016, the directors of AngloGold Ashanti declared a gross cash dividend per ordinary share of 130 South African cents (assuming an exchange rate of R13.10/$, the gross dividend payable per ADS is equivalent to 10 US cents).

Share price data

Ordinary shares in issue
Market capitalisation
$4,29bn (2015: $2.88bn)
average price
R209.18 (2015: 113.12)
average price
$14.35 (2015: 8.95)

As at 31 December 2016


The 73rd annual general meeting of the shareholders of AngloGold Ashanti for the year ended 31 December 2016 will be held at 11:00 (South African time) on Tuesday, 16 May 2017.