Slide 1: Results for the second quarter and six months ended 30 June 2005
Results for the second quarter and six months ended 30 June 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 Strong financial performance, including a 19% increase in headline earnings adjusted for the effect of unrealised non-hedge derivatives to $92m Profit attributable to equity shareholders up $74m to $96m Gold production steady at 1.569Moz Total cash costs down 2% to $278/oz South Afric
Slide 4: Management succession
Management succession Roberto Carvalho Silva – COO International 33 years of experience with AngloGold Ashanti and its predecessors Joined Anglo American in its Brazil exploration JV as Chief Accountant in 1973 Moved up the company finance ranks and was appointed Brazil Gold CEO in 1997 Appointed CE
Slide 5: Management succession
Management succession Neville Nicolau – COO Africa Started as Vaal Reefs learner official In 1996, appointed general manager – Great Noligwa Technical director of South American operations from 1999 to 2001 Appointed Executive Officer – South Africa region in 2001 In 2005, appointed Chief Operating
Slide 6: Management succession
Management succession Fritz Neethling – Executive Officer - East and West Africa 21 years with the company and the greater group Engineering positions with Iscor, Somchem, De Beers Consulting mechanical and electrical engineer for Anglo American plc in 1997 Appointed general manager of Ergo in 1999
Slide 7: Management succession
Management succession Richard Duffy – Executive Officer - Business Development 18 years with the company and its predecessors Joined AA plc as management trainee Seconded to Zambia in 1994 to rationalise Anglo’s investments Joined AngloGold at its formation in 1998 as Managing Secretary to the Board
Slide 8: Management succession
Management succession Srinivasan Venkatakrishnan – Executive Director - Finance Deloitte and Touche Audit and Tax Manager from 1986 to 1991 Promoted to Deloitte and Touche Director, Reorganization Services in 1991 In 2000, was asked to join Ashanti Gold Fields as Chief Financial Officer & Executive
Slide 9: Gold market review
Gold market review Q2’05 Average spot price for the quarter of $427/oz – identical to that of last quarter Dramatic dislocation between the gold market and the currency market when US dollar strengthened 10% against the euro over the quarter, gold rallied Gold price is expected to continue to benefi
Slide 10: Euro/US$ exchange rate & US$ gold price
US$/oz 430 435 440 445 415 420 425 1-Apr-05 Q2’05 6-Apr-05 11-Apr-05 16-Apr-05 21-Apr-05 US$/oz 26-Apr-05 1-May-05 6-May-05 12-May-05 18-May-05 24-May-05 29-May-05 3-Jun-05 8-Jun-05 Euro / US$ exchange rate & US$ gold price Euro/US$ 14-Jun-05 20-Jun-05 25-Jun-05 30-Jun-05 1.20 1.22 1.24 1.26 1.28 1.
Slide 11: Hedge overview
Hedge overview Q2’05 Price received within $5 per oz of the spot price of $427 per oz for the quarter Little volume left in 2005 hedge commitments and cover of only 17% of production in 2006 further material reductions in the volume of hedge outstanding therefore unlikely in the coming 6 to 18 month
Slide 12: Africa region
Africa region Quarter review Obuasi production increases 11% to 102,000oz, meeting management target Production at Siguiri in Guinea up 37,000oz after first full quarter of operation of the new CIP plant Production down 14% and cash costs up 55% at Geita due to lower grade mined and contractor ineff
Slide 13: Cost savings 2005
Cost savings 2005 South Africa region Achieved savings Forecast savings Category of savings R million R million Operational efficiency 238 550 Procurement 71 87 Restructuring 13 25 Total 322 662
Slide 14: Great Noligwa and Moab Khotsong
Great Noligwa and Moab Khotsong Grades Great Noligwa shaft Moab Khotsong shaft 1 - 650 cmg/t 650 - 1000 cmg/t 1000 - 2000 cmg/t 2000 - 3000 cmg/t 3000 - 3450 cmg/t Moab Extension 3450 - 3900 cmg/t 3900 - 4500 cmg/t > 4500 cmg/t
Slide 15: Geita
Geita Mineral Resource and satellite targets Matandani 1.27Moz @ 2.70g/t Geita Hill Kukuluma 5.21Moz @ 2.90g/t Chipaka 0.39Moz @ 3.12g/t Nyankanga Surface 0.33Moz @ 1.88g/t Area 3 West 6.64Moz @ 4.44g/t 0.28Moz @ 2.05g/t Nyankanga Underground 0.92Moz @ 8.16g/t Lone Cone 0.31Moz @ 2.62g/t Matandiko N
Slide 16: Obuasi
Obuasi Key objectives for 2005 Parameter January 2005 June 2005 Target 2800 per month by Development metres 1400 per month 2600 per month end of 2005 Definition drilling 2100 per month by 700 per month 2106 per month metres end of 2005 Number of available 22 per month by 13 per month 17 per month mi
Slide 17: Obuasi Ultra Deeps
Obuasi Ultra Deeps Current drilling and proposed drillhole locations
Slide 18: The Americas and Australia
The Americas and Australia Quarter review Steady operational performances from Brazilian operations Production down 11% at Cerro Vanguardia, though expected to rise going forward Production down 12% at CC&V due to delayed recoveries, though should increase in the second half of the year Sunrise Dam
Slide 19: Sunrise Dam
Sunrise Dam 2005 gold production Watu Cutback – mined Jan-June 2005 150 120 90 000 oz Mega Pit – to be mined Jul-Dec 2005 60 30 0 Q1'05 Q2'05 FQ3'05 FQ4'05
Slide 20: Sunrise Dam underground
Sunrise Dam underground Feasibility study 2003-2006 Total decline development - 9 km Progress at July 2005 - 4.9 km Sunrise Shear Portal Western Shear Portal North Decline Western Shear East Decline Decline South Exploration Decline
Slide 21: Sunrise Dam 2005 exploration
Sunrise Dam 2005 exploration GQ zone North South Significant Significant GQ GQ results results (g/t (g/t Au) Au) include: include: 13m 13m @@ 102.7 102.7 12.2m 12.2m @ 7.4 @ 7.4 9m 9m @@ 16.4 16.4 5m 5m @@ 9.8 9.8 5m @ 7.9 5m @ 7.9 4m 4m @@ 8.0 8.0 4m @ 7.1 4m @ 7.1 Sunrise 3m 3m @@ 12.1 12.1 Shear
Slide 22: Córrego do Sítio
Córrego do Sítio Carvoaria Velha-Bocaina Sao Bento Mine Mineral Resource estimate 1.947Mt @ 8.20g/t. Open down plunge. 61% oxide. Mineralized Mineralized zones zones Bocaina Carvoaria Velha Carvoaria Velha Non-refractory gold mineralisation defined to a down plunge length of Laranjeira 1200m Cristin
Slide 23: Cuiabá Mine
Cuiabá Mine Layout and expansion