We operate across several countries with varied geographies and politics, making effective risk management an important aspect of our business.
Our risk management process is aligned to good practice in the sector and is supported by a strong ethos of consultation and transparency.
In late 2021, AngloGold Ashanti introduced a new Operating Model to improve the effectiveness of the business and reduce costs. This Operating Model sought to define the role of the corporate centre by introducing clear functional mandates, ensuring functional roles are located at only two places in the corporate structure rather than three or four previously, ensuring that revenue-generating assets are adequately resourced to deliver on their objectives, and streamlining reporting structures and workflow. See the CEO’s message for further information on the new Operating Model.
Key to the long-term sustainability of our business is securing our SLO (see Contributing to resilient, self-sustaining communities). This has become all the more important – and challenging – amid the ongoing COVID-19 pandemic and its aftermath, as governments across the world deal with the clear societal and economic impacts it has had on their countries and economies. We continue to address this need by collaborating with our host communities and governments through infrastructure development, small business support, public health initiatives, agricultural development and education initiatives, among other things. Our SLO is crucial to ensuring ongoing access to ore bodies for development.
It is crucial, therefore, that we replace the ounces we deplete in order to secure the future of our business for the benefit of all stakeholders. In 2021, the ongoing investment to extend mine lives and enhance operating flexibility made good progress, with 2.7Moz Ore Reserve, pre-depletion, bringing cumulative additions pre-depletion to a sector-leading 8.7Moz over the past two years. Further, we added a maiden Mineral Resource at the Silicon deposit in Nevada totalling 3.4Moz. We continue to invest in extending mine lives and enhancing operating flexibility.
The balance sheet is also vital to ensuring we have the financial wherewithal to develop these mineral deposits, which is the wellspring from which our investors and other stakeholders benefit. Our balance sheet remained robust throughout the year, despite the several operating headwinds we faced. Leverage, or the ratio of adjusted net debt to adjusted EBITDA, ended the year at 0.42 times, well below the 3.5 times covenant ratio of our credit facilities and under our 1.0 times target, through the cycle. We had strong liquidity, comprising the $1.4bn multi-currency revolving credit facility (RCF) of which $1,367m was undrawn, $150m Geita RCF of which $40m was undrawn, $65m Siguiri RCF of which $30m was undrawn, South African R150m ($10m) RMB corporate overnight facility which was undrawn, and cash and cash equivalents of approximately $1.15bn. Balance sheet flexibility was enhanced with the issue of a new $750m, 7-year bond at a record low coupon for the Company of 3.375% per annum.