Anglogold Ashanti Plc · NYSE:AU
Anglogold Ashanti — Gold Investment Summit 2004
18 slides from Anglogold Ashanti's conference presentation, November 2004
Slide 1: Managing Risk Beyond Mature Gold Regions
Managing Risk Beyond Mature Gold Regions Richard Duffy and Gordon Wylie Gold Investment Summit November 2004
Slide 2: Disclaimer
Disclaimer Except for the historical information contained in the presentation to be made, there are matters discussed here that are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended,
Slide 3: Introduction
Introduction ANGLOGOLD ASHANTI
Slide 4: Strategic Growth Objectives
Strategic Growth Objectives Maximum performance from asset base Successful resource growth and conversion Growth opportunities through value-adding acquisitions and targeted greenfields exploration
Slide 5: AngloGold Ashanti Achievements
AngloGold Ashanti Achievements High margin, long life acquisitions in Australia, Tanzania, Mali, Ghana and Argentina Disposal of high-cost, short life operations, mainly in South Africa Focus on extending lives of existing operations Feasibility studies underway at Sunrise Dam underground, Cuiabá de
Slide 6: Asset Base Diversification
Asset Base Diversification AngloGold 1999 AngloGold Ashanti 2004 83% 37% 43% 4% 8% 6% 5% 7% 7% South Africa Africa South America South Africa Africa North America Australia South America North America
Slide 7: New Frontiers Logic
New Frontiers Logic Global gold production is expected to decline over the next 10 years Gold price expected to remain positive due to hedging, global political uncertainty, continued weak US dollar Existing exploration areas are maturing and the acquisition of existing assets in established areas i
Slide 8: Global Prospectivity
Global Prospectivity ii Younger proterozoic epithermal Q Q and orogenic deposits | Ancient archean/proterozoic mainly orogenic deposits ANGLOGOLD ASHANTI
Slide 9: Key Risk Areas
Key Risk Areas Prospectivity Risk Operational Risk Environmental Risk Political Risk stoppers Geological potential Security of Government Show Legislation tenure stability Maturity Repatriation Community issues Security/safety breakers Deal Ground availability of profits External pressure Corruption
Slide 10: Risk Analysis
Risk Analysis Country Risk Traditional country risk analysis can be misleading, as it may not be relevant to AngloGold Ashanti or the gold mining industry. AngloGold doubled its holding in Cerro Vanguardia when Argentina’s country risk was very high due to: banking system collapse runaway currency d
Slide 11: What is Risk?
What is Risk? AngloGold Ashanti views risk as: Potential for adverse change to occur in areas of interest to a gold mining company, including: ownership rights curbs on cross-border transfers earnings security Perception and therefore requires: local presence and information desktop research and exp
Slide 12: Red 5 – The Philippines
Red 5 The Philippines Beale) a fe A * a Philippines a 4 Manila ; re .¢: _ f Surigao City R , Mindoro \. > 9... Samar of by ’ , ? oe, o Negros \ Bohol A ey ‘ ‘ ‘ % 4 Palawan Mindanao ‘ \ Sisons= — ‘ \ MUNIN S excluded area \ O Bayugo ‘ . Boyangan O. ‘ ‘ \ * . Mainit = : \ My ‘ Lake Mainit Alegrial -.
Slide 13: Risk Assessment Summary
Risk Assessment Summary Local presence and confirmation of prospectivity Increasingly focused research, drilling down to the community in which we would operate Comparison of opinions – AngloGold Ashanti v. ‘outside’ views Identification of a potential partner to ameliorate exploration and operation
Slide 14: New Frontier Opportunities
New Frontier Opportunities Yatela ee Sadiola & Guinea’ ( Siguiri g Bibiani ° Obuasi Iduapriem & Teberebie South \ \ aa é \ ” \ , ” \ J \ 2 o Cripple Creek \ & Victor i Central J itarninee *. America .) SE Asia Geita $e: Tanzania ee oBhe Serra Navachab =a Grande Namibia’ AngloGold South African Ashan
Slide 15: Exploration Philosophy
Exploration Philosophy Finding profitable ounces at target costs Target criteria Success factors - Long life, low cost orebodies - First class explorationists - Advanced technologies Focused target generation - Definitive walk-away criteria - Multidisciplinary teams combined - Sustained budgets with
Slide 16: Greenfields Exploration
Greenfields Exploration Current efforts focused in Alaska, principally at Livengood and West Pogo South America, in Peru and Colombia DRC, established a base in the Ituri region Russia, strategic partnerships and greenfields exploration China, established an office and looking at strategic alliances
Slide 17: Embracing Risk
Embracing Risk Risk must be understood and managed, not avoided Joint ventures with juniors help ameliorate some risks, especially in New Frontier environments AngloGold Ashanti strives to develop healthy relationships with selected juniors to maximize opportunities and gain early entry into these n
Slide 18: Conclusion
Conclusion AngloGold Ashanti has: developed a competitive advantage as a developing economy gold company; developed a risk management approach that prudently balances risk with reward in these new territories; and demonstrated the ability to develop meaningful, sustainable partnerships – necessary b