AngloGold Ashanti plc · NYSE:AU
AngloGold Ashanti — Diggers & Dealers Forum 2014
21 slides from AngloGold Ashanti's conference presentation, Aug 6, 2014
Slide 1: Diggers & Dealers Forum 2014
Diggers & Dealers Forum 2014 ANALYST VISIT – 3RD MARCH 2014 Graham Ehm – Executive Vice President Group Planning & Technical DUNCAN GIBBS – GENERAL MANAGER AUGUST 6 2014
Slide 2: Disclaimer
Disclaimer 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, cash costs, all-in sustaining costs, cost savings and
Slide 3: AngloGold Ashanti at a glance
AngloGold Ashanti at a glance An extensive global operational and exploration footprint with improving geographical split… 2013 Gold Production South Africa 32% Australia 8% Continental Americas Africa 24% 36% 2013 EBITDA South Africa 35% Australia 4% Americas Continental 26% Africa 35% ...provides
Slide 4: Building blocks for AngloGold Ashanti
Building blocks for AngloGold Ashanti Seek to maximise sustainable free cash flow from a high-quality, diversified portfolio… …whilst maintaining the fundamentals of the business, with a focus on delivery. 4
Slide 5: Delivery on key strategic objectives
Delivery on key strategic objectives Progress has been made in achieving strategic objectives despite tough headwinds… AISC improved 22% y-o-y to $993/oz in Q1’2014 Kibali, Tropicana commissioned ahead of time, on budget Overhead and exploration costs decline by 34% Navachab sale for US$110m
Slide 6: Safety performance
Safety performance We strive to achieve zero harm… Fatalities • Record Q1 AIFR performance - 20% fewer injuries year-on-year, 8% fewer days lost. Year-on-Year 1Q’13 1Q’14 Reduction • One fatality in South Africa and two in Brazil; South Africa 3 (2) 1 both in non-production related incidents. Intern
Slide 7: Improvements in production and costs
Improvements in production and costs New production coming on stream at lower costs, as planned… Quarterly gold production All-in sustaining costs (AISC) koz $/oz Q1 2014 Q1 2014 1.06Moz $993/oz 1,229 1,302 1,275 1,043 1,155 935 1,015 899 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2013 Q2 2013 Q3 2013 Q4 20
Slide 8: Capital expenditures
Capital expenditures Total capex profile has reduced significantly since 2012… Capital expenditure $bn 2.32 2.00 • Reduced capex from 2012 onwards reflecting delivery of Kibali and Tropicana. 1.69 1.38 • Medium term capex focused on: – CC&V MLE2 – Mponeng B120 – Kibali underground – Obuasi decline •
Slide 9: Obuasi
Obuasi Meaningful action taken to correct Obuasi underperformance continues… Production and All-in cost trend Areas of progress 80 3000 • Labour reductions. 70 2500 • Lower cost mining contract. 60 50 2000 • Underground equipment rationalisation. • New decline development well advanced. $/oz koz 40
Slide 10: Obuasi next steps
Obuasi next steps A radical intervention is being defined… Current Underground Layout (long section) In consultation with key stakeholders to support: South North 1. Amended Program of Mining Operations • Substantial reduction in production to tailings retreatment only • Targeted mine development •
Slide 11: Returning to growth
Returning to growth New mines scheduled to deliver approx. 580,000 oz in 2014 at $600/oz… Annual production oz Actual Forecast* 6000 5000 4000 3000 2006 2007 2008 2009 2010 2011 2012 2013 2014 *mid-point of guidance 4.2Moz-4.5Moz …helping improve the portfolio and deliver annual production growth fo
Slide 12: AGA Greenfields Portfolio 2014
AGA Greenfields Portfolio 2014 Focused Greenfields exploration… Greenfields Exploration Countries Continued Success in Colombia and Guinea Projects - Focused activities • Outlining significant oxide resource at Kounkoun. Projects – On hold • 630koz Au resource added by end of 2013* • Goal to at leas
Slide 13: Portfolio improvement: Kibali
Portfolio improvement: Kibali Kibali (45% AngloGold Ashanti) started production ahead of budget and on schedule… • Secondary sulphide circuit currently being commissioned. • Focus on handover of metallurgical plant and Met Plant and power generators commissioning of Nzoro hydropower station. • Ramp-
Slide 14: Portfolio improvement: Tropicana
Portfolio improvement: Tropicana A world-class, tier-one mine (70%) discovered and developed by AngloGold Ashanti… • Started ahead of schedule and on budget in September 2014. • Production in first half of 2014 of 253,423 oz • Minimal capital requirements expected going forward, contributing to high
Slide 15: Portfolio improvement: Tropicana ramp-up
Portfolio improvement: Tropicana ramp-up New low-cost mine performing to plan… Tropicana Mill Tonnes (tpd; Jan - May 2014) Ramp-up • 95% availability (design) achieved in March 2014. • Consistently achieving throughput rate of > 5.8 Mtpa (nameplate). Recovery • Consistent with Bankable Feasibility S
Slide 16: Cost reduction: gas power for WA mines
Cost reduction: gas power for WA mines Conversion to gas-fired power for processing … • Agreements signed in July with APA Group to transport natural gas to the Sunrise Dam and Tropicana operations • APA to construct a 292 km pipeline, the Eastern Goldfields Pipeline, with gas to be available at Tro
Slide 17: Cost reduction: Sunrise Dam
Cost reduction: Sunrise Dam Strategy to replicate success of open pit in underground mine … • Open pit completed early 2014 with successful mining of Crown Pillar • Strategy to steadily increase underground ore production using techniques effective for orebody in the open pit: RC grade control and l
Slide 18: Australia's cost competitiveness challenge
Australia’s cost competitiveness challenge All In Sustaining Costs high relative to most other gold producing nations… South Africa Australia China Russia United States Peru Indonesia Average of 10 biggest producers US$/oz 1600 1400 1200 1000 800 600 400 200 2007 2008 2009 2010 2011 2012 Source: Tho
Slide 19: Royalty payments by the gold industry
Royalty payments by the gold industry The Australian gold industry is an important contributor to government revenues… $m Royalty payments by the Australian gold industry 350 300 250 200 150 100 50 0 Source: Deloitte Access Economics …with 70% of gold royalties paid to the WA Government in 2012/13..
Slide 20: Celebrating the official opening of Tropicana - March 2014
Celebrating the official opening of Tropicana - March 2014 20
Slide 21: ANGLOGOLD ASHANTI
ANGLOGOLDASHANTI