Anglogold Ashanti Plc · NYSE:AU
Anglogold Ashanti — Q3 2005 Earnings Presentation
19 slides from Anglogold Ashanti's earnings presentation, Oct 26, 2005
Slide 1: Results for the third quarter and nine months ended 30 September 2005
Results for the third quarter and nine months ended 30 September 2005
Slide 2: Disclaimer
Disclaimer Certain statements contained in this document, including, without limitation, those concerning the economic outlook for the gold mining industry, expectations regarding gold prices and production, the completion and commencement of commercial operations of certain of AngloGold Ashanti’s e
Slide 3: Quarter review
Quarter review Q3’05 Group production down slightly to 1.534Moz, with total cash costs up 2% to $284/oz Good cost control and strong operating performances from the South Africa region, in spite of four-day strike Steady performances from most international assets, with Sunrise Dam production down a
Slide 4: Financial overview
Financial overview Q3’05 Gold price received up $11/oz to $433/oz Total cash costs increase 2% to $284/oz due to: lower grades inflationary increases in fuel, consumables, mining costs Partially mitigated by efficiencies and cost savings Estimated 2005 total cash costs of $282/oz
Slide 5: Adjusted headline earnings movement June to September
Financial overview Adjusted headline earnings movement June to September 140 120 100 80 $ million 60 40 20 0 92 (12) (6) 8 (47) (34) 1 Adjusted Lower grades Geita contractor Other Once-off tax Fair value Adjusted Headline termination credit - Ghana movements on Headline Earnings June Tax rate change
Slide 6: Financial review
Financial review Q3 adjusted headline earnings decline as compared to Q2 At an operations level, decline attributed to: Lower grades at Sunrise Dam and Geita and lower production at Siguiri ($12m) Abnormal contract termination charge at Geita ($6m) At a financial level, decline attributed to: Non-re
Slide 7: Financial review: Convertible bond
Financial review Convertible bond Two elements to the convertible bond – debt and option Option element must be fair-valued at each quarter end and the q-on-q change recorded on the income statement. Option valuation affected by: Rise or fall of US$ share price Rise or fall in volatility in our US$
Slide 8: African asset overview: South Africa
African asset overview South Africa Production up 15,000oz to 677,000oz Total cash costs 2% lower at R59,053/kg Commendable cost management and safety performances Kopanang and Mponeng report good results Tau Lekoa and Savuka improve from the start of the year Great Noligwa and TauTona have not met
Slide 9: Total cash cost management: South Africa
Total cash cost management South Africa 70,000 65,000 R/kg 60,000 55,000 50,000 Q1'04 Q2'04 Q3'04 Q4'04 Q1'05 Q2'05 Q3'05 Total cash costs R/kg 9
Slide 10: Great Noligwa
Great Noligwa South Africa Q3 yield of 9.03 g/t Anticipated 9 g/t for next 3 years Decline to 8 g/t thereafter
Slide 11: TauTona
TauTona South Africa Q3 production of 124,000oz; below expectation Key challenges include: late start in mining 1C11 block slower rate of mining in high- grade shaft pillar area
Slide 12: African asset overview: Tanzania
African asset overview Tanzania Production at Geita down 17% as expected as the next mining phase gets underway. This cut-back likely to begin delivering better grades from Q3 2006 Cash costs up only 7% in spite of production challenges, reflecting a successful transition to owner mining Forecast 20
Slide 13: Geita pit profile
Geita Tanzania Pit profile Q3’05 Cut 5 designed pit profile Low Medium Intermediate High
Slide 14: African asset overview: Ghana
African asset overview Ghana Obuasi production down 4% to 98,000oz, missing 110,000oz target Key challenges were: Primary crusher failure Poor ground conditions in high-grade Sansu and Block 1 areas Good progress on all key input areas, but current inflexibility means volatile monthly production and
Slide 15: Obuasi
ANGLOGOLD ASHANTI Ghana N s Kwesi George Kwesi . . Sansu Renner — Cappendell Mensah ia es ae pa Shaft - Shaft Shaft al al pratt aed Shaft Level 10 Fan = 2... » - Block 1 a be —. - SCs vee =! | _ eee Level32 Sansu Block ~ te 0 = Level 50 (1640mbd) Brown Level 60 Sub V Shaft Level 75 Level 100 i i in
Slide 16: Obuasi: Key objectives for 2005
Obuasi Key objectives for 2005 Parameter January 2005 September 2005 TARGET Development 2800 per month 1400 per month 2700 per month metres end of 2005 Definition 2100 per month 700 per month 2106 per month drilling metres end of 2005 Number of 22 per month available 13 per month 22 per month mining
Slide 17: International asset overview: Argentina and Brazil
International asset overview Argentina and Brazil Production at Cerro Vanguardia up slightly to 52,000oz, though cash costs rose 18% to $202/oz as a result of a lower silver by- product credit and increased maintenance cost Serra Grande and AngloGold Ashanti Mineração both posted commendable product
Slide 18: International asset overview: USA and Australia
International asset overview USA and Australia Production at CC&V up 30% to 92,000oz, with cash costs up marginally to $231/oz due to increasing commodity input and fuel prices At Sunrise Dam in Australia, production dropped 23% as expected to 101,000oz, as mining moved to the low-grade northern end
Slide 19: Sunrise Dam
Sunrise Dam Australia Sunrise Shear Portal Trial stoping July 2005 Panels 1 and 2 Panel 4