DIVERSIFIED, DECISIVE, SUSTAINABLE - The Vault...DENVER GOLD FORUM 2016 5 Focus on sustainable...

DENVER GOLD FORUM September 2016

RON W. LARGENT – CHIEF OPERATING OFFICER

DIVERSIFIED, DECISIVE, SUSTAINABLE

Certain statements contained in this document, other than statements of historical fact, including, without limitation, those concerning the economic outlook

for the gold mining industry, expectations regarding gold prices, production, total cash costs, all-in sustaining costs, all-in costs, cost savings and other

operating results, productivity improvements, growth prospects and outlook of AngloGold Ashanti’s operations, individually or in the aggregate, including the

achievement of project milestones, commencement and completion of commercial operations of certain of AngloGold Ashanti’s exploration and production

projects and the completion of acquisitions, dispositions or joint venture transactions, AngloGold Ashanti’s liquidity and capital resources and capital

expenditures and the outcome and consequence of any potential or pending litigation or regulatory proceedings or environmental health and safety issues,

are forward-looking statements regarding AngloGold Ashanti’s operations, economic performance and financial condition.

These forward-looking statements or forecasts involve known and unknown risks, uncertainties and other factors that may cause AngloGold Ashanti’s

actual results, performance or achievements to differ materially from the anticipated results, performance or achievements expressed or implied in these

forward-looking statements. Although AngloGold Ashanti believes that the expectations reflected in such forward-looking statements and forecasts are

reasonable, no assurance can be given that such expectations will prove to have been correct. Accordingly, results could differ materially from those set out

in the forward-looking statements as a result of, among other factors, changes in economic, social and political and market conditions, the success of

business and operating initiatives, changes in the regulatory environment and other government actions, including environmental approvals, fluctuations in

gold prices and exchange rates, the outcome of pending or future litigation proceedings, and business and operational risk management.

For a discussion of such risk factors, refer to AngloGold Ashanti’s annual report on Form 20-F for the year ended 31 December 2015, which was filed with

the United States Securities and Exchange Commission (“SEC”). These factors are not necessarily all of the important factors that could cause AngloGold

Ashanti’s actual results to differ materially from those expressed in any forward-looking statements. Other unknown or unpredictable factors could also have

material adverse effects on future results. Consequently, readers are cautioned not to place undue reliance on forward-looking statements. AngloGold

Ashanti undertakes no obligation to update publicly or release any revisions to these forward-looking statements to reflect events or circumstances after the

date hereof or to reflect the occurrence of unanticipated events, except to the extent required by applicable law. All subsequent written or oral forward-

looking statements attributable to AngloGold Ashanti or any person acting on its behalf are qualified by the cautionary statements herein.

The financial information contained in this news release has not been reviewed or reported on by the Company's external auditors.

This communication may contain certain “Non-GAAP” financial measures. AngloGold Ashanti utilises certain Non-GAAP performance measures and ratios

in managing its business. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the reported operating results or

cash flow from operations or any other measures of performance prepared in accordance with IFRS. In addition, the presentation of these measures may

not be comparable to similarly titled measures other companies may use. AngloGold Ashanti posts information that is important to investors on the main

page of its website at www.anglogoldashanti.com and under the “Investors” tab on the main page. This information is updated regularly. Investors should

visit this website to obtain important information about AngloGold Ashanti.

DISCLAIMER

DENVER GOLD FORUM 2016 2

AGENDA


A Strategy for Any Gold Market

Daylighting Value for Shareholders

Background and Strategy

GLOBALLY DIVERSIFIED AND ACTIVELY MANAGED


14% of H1 production

Australia


South Africa


Continental

Africa


Americas

A truly global gold producer with strong technical

experience and emerging market credentials

• Balance global portfolio - 19 operations in 9 countries

• Open-pit, mechanised underground and ultra-deep mining

• Free milling & refractory ores

• Pure gold exposure, >95% of revenue from gold

• Strong pipeline of brownfield and greenfield projects

POSITIONED TO CREATE VALUE THROUGH THE CYCLE


Focus on sustainable improvements to margins and cash flow

Consistent delivery on targets; improving cost management on key metrics

Decisive action on operations, balance sheet

Focus on optionality to deliver value-adding growth

Ongoing portfolio improvements and rationalisation

Working towards zero harm through the elimination of high consequence events

Responding decisively and proactively to

create sustainable value through the cycle

1597

1312 1341

1170

1017 993 1052 1034

1005

920 928 937

860 860

962

600

800

1000

1200

1400

1600

1800

2000

2200

Q4 2012Q1 2013Q2 2013Q3 2013Q4 2013Q1 2014Q2 2014Q3 2014Q4 2014Q1 2015Q2 2015Q3 2015Q4 2015Q1 2016Q2 2016

$/o

z

All-in sustaining costs* Average gold price All-in costs*

FOCUS ON MARGINS


We remain focused on margins through

cost control, operational excellence, and

selected value-added growth

*World Gold Council standard

E B I T D A M a r g i n

29% 40% 23% 37%

PORTFOLIO IMPROVEMENTS

7

Bubble size = reserve size; calendar year AISC and production

We have moved our assets down the

cost curve through rigorous cost

management and capital allocation

2014 South Africa

2014 Continental Africa

2014 Australia

2014 Americas

2015 South Africa

2015 Continental Africa

2015 Australia

2015 Americas

0

200

400

600

800

1000

1200

1400

1600

1800

2000

750 850 950 1050 1150 1250 1350

Pro

duction,

koz

AISC ($/oz)

DENVER GOLD FORUM 2016

FLEXIBLE BALANCE SHEET


Highest cost debt redeemed using internal

proceeds; good liquidity, no near-dated

maturities, ample covenant headroom

Last-12-months adjusted EBITDA ratio based on restated results

Net debt and Net debt to Adjusted EBITDA

1.81 1.70

1.94 2.02 1.95

1.54 1.49 1.47 1.44

1500

2000

2500

3000

3500

0.5

1

1.5

2

2.5

3

3.5

Q22014

Q32014

Q42014

Q12015

Q22015

Q32015

Q42015

Q12016

Q22016

Net

debt

$m

Net

debt

to A

dju

ste

d E

BIT

DA

Net debt to Adjusted EBITDA Net debt

Covenant: 3.5x

Undrawn facilities* At 30 June 2016

*Total calculated with ZAR facility at R14.68/$ (excluding DMTNP), AUD

facility at 0.745$ to A$

A$ 190m

R3.2bn

US$1bn

US$470m Cash

$1,830bn

AGENDA





DISCIPLINED APPROACH TO CAPITAL ALLOCATION


• Focus on margin growth rather

than production growth

• Near- to medium-term focus on

improving production mix through:

- efficiency improvements

- mine-plan changes

- high-return brownfield projects

Our focus is to improve net asset value in a

sustainable way, through strict capital

allocation

DISCIPLINED APPROACH TO PLANNING


750 850 950 1050 1150 1250 1350

Rigorous project evaluation

methodology using

conservative assumptions

and lower than current AISC

targets

Average Gold Price (3yr)

Current Reserve Price

H1 2016 All-in Cost

Spot Gold Price*

Target >15% returns through the cycle

* Price at 16 September 2016

OPPORTUNITIES FOR VALUE CREATION UNDERWAY


6

12

8

11

7

7

5

3

5

3

1

1

2

3

1

3

4

Geita

Iduapriem

Siguri

Sadiola

Tropicana

Sunrise Dam

CVSA

MSG

Mineracao

Life of mine Years

Base Plan Partial Site Optimisation Success

High-grade Palmeiras and Inga ore bodies in development

Drilling satellite orebodies; Ore-sorting prototypes commissioned

Strong exploration focus on concession and adjoining property

Increase reserve; optimise plant, increase tons and studying in-pit waste deposition

Boost mined tonnage and Vogue resource; optimise recoveries and ore handling

Complete optimisation of PFS; Power accord and other permissions from GoM

Investment agreement reached for new Hard Rock Plan, access new mining blocks

Confirm exploration potential of Block 1

Early underground ramp-up at Star & Comet; Confirm underground potential elsewhere

SIT

E

OP

TIM

IIS

AT

ION

IN

ITIA

TIV

ES

*

* Site Optimisation includes mine planning, brownfields exploration, asset reliability, P500 and Operational Effectiveness

work underway; Partial site optimization success includes the first 1/3 of opportunities identified

PROJECT: SIGUIRI BROWNFIELDS EXPANSION


Kibali - Dam wall and Stilling basin

Scope:

Expand plant • Lower cost • Extend life

•Treat 43M tonnes containing ~1.6Moz fresh/transitional

material at 1.16g/t

•Opens new exploration targets and opportunities

•Targeting high returns

Capex: $115M over two years

Production and AISC target: C.300koz pa at c.$900/oz

Timeframe: Completion in 2018, extends LOM from

2019 to 2023

Progress:

•Approvals received, targeting ratification by year-end

•100 holes drilled in Area 1 in first half show good grades

over thick intersections

PROJECT: SADIOLA SULPHIDES BROWNFIELDS EXPANSION


Scope:

Treat sulphides • Deliver returns • Extend life

•Current case is 7.2Mt annual throughput

•Treat 58M tonnes at 1.93g/t containing 3.6M oz of gold

•Addition of a crushing, grinding and additional CIL circuits

enables hard rock processing

•Upgrade existing plant and associated infrastructure to

maximise capital efficiency

Capex*: Optimisation studies underway

Production and AISC target: C.300koz pa at c.$900/oz

Timeframe: Completion by 2019, adds 10 years to LOM

Progress report:

•Optimisation study underway includes: • Optimised mine planning,

• Owner vs Contractor trade off

• Tailings Storage Facility alternatives

•Board decisions expected in Q4

*Previous assumption was $361M on a 100% basis plus pre-stripping cost

GEITA UNDERGROUND



Scope:

Extend LOM • Convert reserve • Expand to underground

•Early self funding exploration, enabling quick access to value

while building UG capability

•Underground targets at Nyankanga, Star & Comet and Geita

Hill have potential to significantly extend the LOM

•Matandani sulphide material being tested

Capex: Sustaining capital expected to remain at levels

similar to 2016

Timeframe: Development and exploration to take place

through to the end of 2018

Progress report:

• Total 8,143m of development expected through to 2018

• Targeting 641,000 tonnes of ore @ 6.27g/t for 117,000oz

Oblique 3D View of Resource Model coded on classification

TROPICANA VALUE ENHANCEMENT



Latest concept – August 2016

Tropicana pit to be used for waste backfill from mining at

Havana South and Boston Shaker; large reduction in

haulage cost

Scope:

Grow reserve • lower cost • extend LOM

•Target substantially reserve increase by year-end

•30% higher plant capacity to support long life operations

•Materially cut mining costs by optimising haulage

• Increase mining volumes to reap benefits of scale

Capex: Expected to remain at levels seen in 2016

Costs: Significant improvement over current levels

Timeframe: Positive production impact in 2017

Progress report:

•Plant optimisation and upgrade near completion

•New mining strategy being investigated whereby Tropicana

pit is used for waste, resulting in shorter haulage route

• Intensive drilling at Boston Shaker and Havana Deeps have

revealed high-grade targets outside existing resource

SUNRISE DAM ENHANCEMENT INITIATIVES



Scope: Increase recoveries • Add resources • Lower cost

•Recovery improvement target >6% Considering

underground crushing and conveyor haulage to surface

ROM pad to:

- reduce re-handling and trucking costs

- maximize production rates

•Drilling to add resource from Western incline area

Capex: Incremental capex relative to current level

Cost Target: AISC <$900/oz

Timeframe: Positive results by end of 2017

Progress report:

•Feasibility study targeted for completion early 2017

COLOMBIA – 40M OZ + PATIENTLY ASCENDING THE VALUE CURVE


Gramalote (51%) • Permitted project

• Pre-feasibility targeted for end-2017

• Successful PFS completion will result in

resource-to-reserve conversion

• Current resource 3.475Moz attributable

La Colosa (100%) • Pre-feasibility targeted for end-2017

• Successful PFS completion will result in

resource-to-reserve conversion

• Current resource 28.5Moz

1

2

3

Quebradona (92.53%) • PFS targeted for completion in 2018

• Current resource 5.661Moz of gold,

7.9bn lbs of copper

Successful pre-feasibility studies will lead

to significant reserve addition; Latin

America’s most prospective region

AGENDA





A STRATEGY FOR ANY MARKET


1. High-quality portfolio of long-life, pure gold

assets leveraged to energy and currencies

4. Decisive strategic response cements ability

to weather lower gold price

5. Balance sheet flexibility - appropriate

liquidity, covenant and maturities

6. Well developed engagement model ensures

strong stakeholder relationships

2. Transparent, decisive management team

focused on delivery and shareholder value

with focus on self-help

3. Prioritising margins over production growth

– focus on cost and capital discipline

DIVERSIFIED, DECISIVE, SUSTAINABLE - The Vault...DENVER GOLD FORUM 2016 5 Focus on sustainable...

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