Inputs and related actions – 2021

Began year with:

• A Mineral Resource of 124.5Moz, of which 29.7Moz was classified as Ore Reserve
• 639,709ha of land under management
• Active greenfield and brownfield exploration programmes to identify potentially viable orebodies

During the year, we:

• Treated/milled 44Mt of ore
• Consumed 22.04PJ of energy
• Withdrew 33.12GL of water
• Exploration (brownfield and greenfield) spend of $217m
• Continued project to convert our Brazil tailing storage facilities (TSFs) to dry stacking at a cost of approximately $140m for 2021
• Approved a new Climate Change Strategy to address our energy consumption and greenhouse gas (GHG) emissions and started work on setting new GHG emissions targets for 2030

Outcomes of our actions 2021 (by year end)

• Mineral Resource of 123.2Moz and Ore Reserve of 29.8Moz post depletion at year end
• Maiden Mineral Resource declared for Silicon in Nevada of 3.4Moz
• Agreed to acquire Corvus Gold (Corvus) to increase our position in the Beatty district of Southern Nevada. Corvus properties are adjacent to our own landholdings in the area (acquisition completed on 18 January 2022)
• 5 reportable environmental incidents (2020: 8)
• 639,709ha under management of which 806ha was newly disturbed and 177ha rehabilitated at the end of 2021

For further data, see ESG and Sustainability Data Workbook

Inputs and related actions – 2021

Began year with:

• Total equity of $3.74bn
• Cash and cash equivalents of $1.33bn
• Adjusted net debt of $597m
• Undrawn credit facilities of $1.5bn
• Market capitalisation of $9.43bn

During the year, we:

• Generated $1.268bn in operating cash flow (2020: $1.545bn). The decline was mainly due to the reduced ounces of gold sold and higher operating costs, partially offset by the marginally higher gold price received, lower cash taxes, higher dividends received and favourable movements in working capital. See CFO’s report and outlook
• Began implementation of a new Operating Model which is being introduced to create a foundation to ensure improved operating outcomes in 2022 and beyond
• Issued seven-year $750m bonds at lowest-ever coupon for AngloGold Ashanti of 3.375% per annum
• Successfully redeemed $750m of 5.125% per annum bonds scheduled to mature in 2022

Outcomes of our actions 2021 (by year end)

Ended the year with:

• Robust balance sheet – strong liquidity of approximately $2.6bn, low leverage of 0.42 times adjusted net debt to adjusted EBITDA, and refinanced our longer-term debt through the redemption of the 2022 bonds
• Adjusted net debt of $765m, down 76% from its 2014 peak – without raising additional equity
• 58% lower finance costs since 2014
• Net cash position – cash and cash equivalents of $1.154bn
• Free cash inflow of $104m, down from $743m in 2020 ⁽¹⁾
• Adjusted EBITDA of $1.8bn, down from $2.47bn in 2020
• Capital expenditure of $1.1bn, up from $757m in 2020 ⁽²⁾
• Headline earnings of $612m, down from $1,000m ⁽¹⁾ in 2020
• Share price down by 7% in 2021, negatively impacting market capitalisation at 31 December 2021
• Since 1 September 2021, the share price has increased by 39%, compared with a 15% increase in the Market Vectors Gold Miners Exchange Traded Fund, making AngloGold Ashanti’s one of the best-performing major gold shares over that period

1. Includes discontinued operations
2. Includes joint ventures

Inputs and related actions – 2021

Began year with:

• Safety policy and functional support dedicated to zero harm and eliminating fatalities
• Experienced, diverse leadership and board
• Policy promoting equality, diversity and inclusivity
• Employee localisation a focus area – especially in the Africa region
• Motivational reward structures linked to strategic performance and delivery

During the year, we:

• Employed an average of 30,561 people, including 16,384 contractors (2020: excluding South African operations – 28,655 and 14,937 respectively)
• Revitalised safety strategy and introduced a related three-year work plan focused on leadership and people, processes, technology, innovation and risk management
• Embarked on design and implementation of new Operating Model, including organisational restructuring
• Spent $7m on critical skills training and development
• Supported national COVID-19 vaccination initiatives

Outcomes of our actions 2021 (by year end)

Inputs and related actions – 2021

Began year with:

• Ten mining operations – with accompanying infrastructure, gold processing plants and equipment, and four growth projects in development (Obuasi, Gramalote, Quebradona, Beatty District in Nevada)
• Tangible assets, right of use assets and intangible assets with a book value of $3.157bn
• Relevant exploration and mining rights, permits and licences

During the year, we:

• Incurred total cash costs of $2.3bn
• Spent $778m * on sustaining operations and enhancing performance (sustaining capital)
• Implemented new Operating Model to streamline and empower our operations to enable them to deliver consistently and safely on plans
• Progressed growth projects

For details on materials consumed – such as cyanide, diesel, explosives, acids and alkalis, among other items – in the course of our mining and processing activities, see ESG and Sustainability Data Workbook 2021

Outcomes of our actions 2021 (by year end)

• At 31 December 2021, tangible assets, right of use assets and intangible assets with a book value of $3.757bn

Projects

Inputs and related actions – 2021

Began year with:

• Dedicated community engagement structures to foster strong relationships based on trust
• A reliable, cost-focused and representative supplier database, aligned with our Supplier Code of Conduct, prioritising local suppliers
• Community grievance mechanisms in place across our operations
• Commitment to share value and socio-economic benefits of our mining activities

During the year, we:

• provided informative, transparent, regular and reliable disclosure to all key stakeholders
• maintained constructive relationships with government and regulators
• invested $18.1m⁽¹⁾ in community projects to promote resilient socio-economic development

1. Excludes joint venture

Outcomes of our actions 2021 (by year end)

Inputs and related actions – 2021

Began year with:

• Integrated, focused strategy supported by sound management systems and a robust corporate governance framework encompassing effective risk management
• A values-driven culture that is guided by Our Code
• The necessary policies are in place to ensure responsible environmental stewardship and consumption, and responsible corporate citizenship
• A solid brand and reputation

During the year, we:

• conducted Project Thrive aimed at restructuring and streamlining our organisation to bring about significant efficiency improvements and ensuring its long-term success, which occurred hand-in-hand with the roll-out of the new Operating Model
• conducted a company-wide culture survey as first step in the initiative to refresh organisational culture and values
• progressed digital transformation roadmap – defined the initiatives to be implemented and advanced to feasibility stage. These initiatives are grouped as follows:
  • Digital supply chain
  • Connected assets
  • Intelligent planning and engineering
  • Digital mining operations
  • Connected assets
  • Next generation safety and sustainability

The expected benefits from the roadmap are: improved operational efficiencies; greater agility; improved recoveries; greater staff engagement; reduced costs; and improved safety. Investment to progress the initiatives to feasibility amounted to around $200,000 and entailed:

• Adopting the Control Objectives for Information and Related Technology (COBIT) framework to improve IT governance. This assisted in meeting regulatory compliance, risk management and aligning the IT strategy with the organisation’s overall goals
• Adopting several new processes while the maturity of several existing processes increased to level 4 maturity to further strengthen governance
• Aligning board reporting with King IV principles for good governance

Outcomes of our actions 2021 (by year end)

• Maintained our focus on a robust governance framework, organisational systems and procedures, underpinned by integrating all sustainability systems and processes through our Integrated Sustainability Information Management System (iSIMS). The systems implementation began during the year to increase efficiencies and improve outcomes which are essential to delivering on our strategy, aligned to the new Operating Model
• New Climate Change Strategy developed to enhance proactivity and transparency in mitigating current and future climate risks; measures being taken to strengthen the climate resilience of our business
• Results of the culture survey are being analysed and will be used to guide learnings on how to improve engagement and collaboration with one another in pursuit of our strategic goals
• Committed to a target of net zero Scope 1 and 2 GHG emissions by 2050, and, in partnership with our value chain partners, to set Scope 3 GHG emissions reduction targets, if not by the end of 2023, as soon as possible thereafter