Slide 1: AngloGold & Ashanti Goldfields: A powerful combination
A powerful combination AngloGold & Ashanti Goldfields A transaction which brings together the financial and technical resources of AngloGold with the reserve base and growth potential of Ashanti creating a combination strategically placed for sustained value growth. 1
Slide 2: Certain forward-looking statements
Certain forward-looking statements Certain statements in this presentation are forward-looking within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including, without limitation, those statements concerning (
Slide 3: Summary
Summary The Transaction • AngloGold to merge with Ashanti by way of a scheme of arrangement • Combined group to be called AngloGold Ashanti and will trade as Ashanti AngloGold in Ghana The Terms • 0.26 AngloGold shares for every Ashanti share • US$8.36 per Ashanti share (as at close 1 August) 1 • US
Slide 4: AngloGold & Ashanti
AngloGold & Ashanti A powerful combination … Growth • • Underground potential (Obuasi) Land positions 9 • Potential of improved operating performance Synergies • • Consolidation of Geita ownership Financing, administrative costs 9 • Technical expertise Scale 1 • • #1 in reserves Leading gold produce
Slide 5: Attributable proven and probable reserves (Moz)
Ashanti 25 Tonnes Grade Reserves Production Costs Attributable proven and probable reserves (Moz) (million) (g/t) (Moz) (oz) (US$/oz) 20 Obuasi 60.8 6.1 11.9 537,219 207 Geita (50%) 35.2 4.2 4.7 289,522 172 15 Iduapriem (80%)/ 39.2 1.7 2.1 157,419 241 Teberebie (90%) Siguiri (85%) 47.1 1.2 1.8 228,8
Slide 6: Growth potential: Obuasi Deeps
Growth potential: Obuasi Deeps • Obuasi orebody extends at depth below the deepest level of current workings (1,500m depth) • High grade extensions of orebody projected below 50 level and indicated by exploration intersections down to 66 level (2,000m depth) • Orebody is extrapolated to extend to a
Slide 7: AngloGold & Ashanti: Global presence
AngloGold & Ashanti: Global presence Global presence, focused in some of the most prospective regions in the world... USA Cripple Creek & Victor Yatela Sadiola MALI Obuasi GUINEA Iduapriem / Teberebie Siguiri GHANA Bibiani BRAZIL Geita Morila TANZANIA Serra Grande Morro Velho NAMIBIA ZIMBABWE Union
Slide 8: AngloGold & Ashanti: African champion
AngloGold & Ashanti: African champion Unparalleled operational and exploration activities throughout LEGEND Africa... AngloGold operations (as at 31 December 2002) AngloGold exploration projects Ashanti operations (as at 31 December 2002) Ashanti exploration projects Gold belt Yatela MALI Sadiola GU
Slide 9: Growth potential: Greenfields/Brownfields
Growth potential: Greenfields/Brownfields Global growth prospects CANADA MONGOLIA USA Yatela Morila Cripple Creek Sadiola & Victor Siguiri MALI Serra Grande GUINEA GHANA D R CONGO IVORY COAST TANZANIA Obuasi Geita BRAZIL Iduapriem / Teberebie Union Reefs ZIMBABWE PERU Bibiani NAMIBIA AUSTRALIA Morro
Slide 10: Synergy benefits
Synergy benefits Total annual synergies of US$15 million per annum expected … 1 • Consolidation of Geita ownership • Reduced financing costs • Reduction of administrative and procurement costs • Technical capabilities including potential to reduce expenditure for outsourced functions Note: 1 From fi
Slide 11: Scale: #1 in reserves
Scale: #1 in reserves The world’s largest reserve base … AngloGold & Ashanti¹ 71.2 22.0 93.2 Barrick 86.9 Newmont² 83.2 Gold Fields³ 81.1 Placer Dome 52.9 0 20 40 60 80 100 120 Attributable proven and probable gold reserves (Moz) Source: Public filings as at 31 December 2002 Note: 1 AngloGold reserv
Slide 12: Scale: Production
Scale: Production Leading production … Newmont¹ 7.3 AngloGold & Ashanti² 5.7 1.6 7.3 Barrick 5.7 Gold Fields³ 4.5 Placer Dome 2.8 0 2 4 6 8 10 2002 pro forma attributable gold production (Moz) Source: Public filings as at 31 December 2002 Notes: 1 Gold sales, with estimated adjustments to exclude eq
Slide 13: Operating strength: Quality assets
Operating strength: Quality assets Substantial long-life asset base … Mines with 15+ year life of mine plans ‘02 Production ‘02 Cash costs4 Country (‘000 oz) ($/oz) Geita Tanzania 579 175 Mponeng South Africa 466 178 Morro Velho Brazil 205 131 Obuasi Ghana 537 207 1 3 Boddington expansion project Au
Slide 14: Operating strength: Diversification
Operating strength: Diversification A well diversified portfolio Attributable reserves – pro forma geographic distribution East & South West Africa America 33% 5% Australia 7% North America 5% South Africa 50% Source: Public filings as at 31 December 2002 A powerful combination 14 14
Slide 15: Investment appeal: Size
Investment appeal: Size Re-enforcing AngloGold’s leading market position … Newmont 14,452 Barrick 9,257 AngloGold/Ashanti¹ 7,163 1,089 8,252 Gold Fields 5,588 Placer Dome 5,014 Harmony² 2,355 Buenaventura 2,299 Goldcorp 2,180 Kinross 2,029 Newcrest 1,896 Meridian 1,254 Lihir 992 ARMgold² 823 Avgold
Slide 16: Investment appeal: Share liquidity
Investment appeal: Share liquidity …with liquidity on a par with the North American majors Last twelve months average daily shares traded relative to free float 1.4% 1.2% 1.2% Shares traded as % of free float 1.2% 1.0% 1.0% 0.9% 0.8% 0.8% 0.6% 0.4% 0.2% 0.0% Gold Fields Barrick AngloGold & Placer Do
Slide 17: Investment appeal: Liquidity
Investment appeal: Liquidity … trading largely driven by North America AngloGold & Ashanti share trading – pro forma geographic distribution South Africa 27% Europe 2% US 71% Source: Datastream Notes: 1 Based on share trading volumes over the twelve months up to and including 1 August 2003, the trad
Slide 18: Investment appeal: Dividends
Investment appeal: Dividends … continuing to pass strong cash flow to shareholders 5.0 4.5 4.5 4.0 3.3 Dividend yield (%) 3.5 3.0 2.5 2.0 1.5 1.3 1.0 0.8 0.5 0.5 0.0 Newmont Placer Dome Barrick Gold Fields AngloGold Source: Datastream (as at close 1 August 2003, the trading day prior to announcement
Slide 19: Hedging
Hedging Actively managed hedging position Pro forma June 2003 hedge position 2002 Hedge Hedge Production Delta marked-to-market ('000 oz) (Moz) (US$m) AngloGold 5,939 8.7 (179.3) Ashanti 1,626 6.0 (147.6) Combined 7,565 14.7 (326.9) • Combined hedge within AngloGold policy, percentage hedged of five
Slide 20: Debt
Debt Combined company gearing at comfortable levels Pro forma debt position for the combined group: • Total Debt of US$1,183 million (at 30 June 2003) 1 • Net Debt of US$832 million (at 30 June 2003) 1 • Net Debt to Total Capital Employed of 17.6% (at 30 June 2003) 1 • Net Debt to EBITDA of 0.76 tim
Slide 21: A compelling transaction for Ashanti shareholders
AngloGold & Ashanti A compelling transaction … for Ashanti shareholders • Significant premium – US$8.36 per share 1 – 34% premium based on 30 day average price to 15 May 2 • Enhanced operating profile – significantly larger reserve base – lower cash costs – well diversified asset portfolio • Increas
Slide 22: A compelling transaction for AngloGold shareholders
AngloGold & Ashanti A compelling transaction … for AngloGold shareholders • Enhances AngloGold’s strategic position – Reserves: 31% increase 1 – Production: 27% increase 1 – Market capitalisation: 15% increase to US$8.3 billion 2 – Cash costs: US$220 per ounce at 30 June 2003 on a pro forma basis 3
Slide 23: AngloGold & Ashanti
AngloGold & Ashanti A powerful combination … Growth • • Underground potential (Obuasi) Land positions 9 • Potential of improved operating performance Synergies • • Consolidation of Geita ownership Financing, administrative costs 9 • Technical expertise Scale 1 • • #1 in reserves Leading gold produce
Slide 24: Supplementary materials
Supplementary materials APPENDIX
Slide 25: Company summary
Company summary Fact sheet AngloGold Ashanti Stand-alone Stand-alone Ordinary shares outstanding (m) 222.8 130.3 Share price (US$) 1 32.15 8.362 Exchange ratio 0.26 Market capitalisation (US$m) 7,163 1,0892 2002 Reserves (Moz) 71.2 22.0 Contribution to combined group (%) 76 24 2002 production (‘000
Slide 26: Asset base
Asset base 2002 Attributable production Total cash costs Attributable reserves 1 Mine % ownership (‘000 oz) (US$ / oz) (Moz) South African Great Noligwa 100 880 124 6.9 Kopanang 100 511 165 6.0 Tau Lekoa 100 311 192 3.9 Surface operations—Vaal River 100 99 137 2.4 Ergo 100 264 184 0.8 Mponeng 100 46
Slide 27: Asset base (continued)
Asset base (continued) 2002 Attributable production Total cash costs Attributable reserves 1 Mine % ownership (‘000 oz) (US$ / oz) (Moz) East & West Africa (continued) Iduapriem / Teberebie 80 / 90 157 241 2.1 Bibiani 100 242 189 0.8 Siguiri 85 229 241 1.8 Obuasi 100 537 207 11.9 Freda-Rebecca 100 9
Slide 28: Asset base (continued)
Asset base (continued) 2002 Attributable production Total cash costs Attributable reserves 1 Mine % ownership (‘000 oz) (US$ / oz) (Moz) Australia Boddington 33.33 2 – 3.6 Sunrise Dam 100 382 177 2.6 Union Reefs 100 118 224 0.1 Totals 7,256 168 93.2 Source: AngloGold public filings as at 31 December
Slide 29: Additional information
Additional information In connection with the proposed transaction, AngloGold will file with, or otherwise furnish to, the SEC a scheme document/prospectus. Investors and security holders are urged to carefully read the scheme document/prospectus regarding the proposed transaction when it becomes av