Anglogold Ashanti Plc · NYSE:AU
Anglogold Ashanti — Corporate Update (February 2005)
75 slides from Anglogold Ashanti's corporate update, Feb 12, 2005
Slide 1: Analyst Visit Geita Gold Mine
Analyst Visit GEITA GOLD MINE February 12 2005 Peter Turner Managing Director 1
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: Contents
Contents • Introduction to Geita • Geology and Exploration • Mining • Metallurgy • Key Results • Safety, Health and Environment • Human Resources • Community Development 3
Slide 4: Introduction
Introduction Regional Map Geita 4
Slide 5: Locality Map
Locality Map Placer Dome Mwanza GEITA Tulawaka Kahama Golden Pride This area is geologically referred to as the Lake Victoria Goldfields which the following Geita (18Moz), Kahama (25Moz), Golden Pride (2Moz), Placer Dome (4Moz) and Tulawaka (0.6Moz). Kahama is currently the only Underground Mine and
Slide 6: Management Team
Management Team • Peter Turner - Managing Director • Hatibu Senkoro - AGA Country Manager • Martin Ahorney - Finance • Jon Yelland - Mining • Steve Rule - Metallurgy • Richard Adofo - Geology • Philemon Tano - Human Resources • David Kiama - Community • Steve Quigley - Safety • Ulrich Sibilski - Env
Slide 7: Our business is gold
Our Mission Our business is gold 7
Slide 8: Our core value
Our core value AngloGold Ashanti consistently strives to generate competitive shareholder returns. We do this by replacing profitable gold reserves and by continuously improving the performance of our key resources - our people, our assets and our product. We do this by • finding • mining • developi
Slide 9: Strategic Aims
Strategic Aims Geita’s strategic aim is to contribute to AGA’s purpose by developing the Geita Gold Mine into one of the world’s most efficient and safe gold mining operations through: • Implementation of internationally recognised safety, training environmental best practices • Maintaining cordial
Slide 10: Doing Business in Tanzania
Doing Business in Tanzania • Government Relationship • Tax Structure • Mining Title • Contribution to the Tanzanian Economy 10
Slide 11: Geita History
Geita History •1994 Start of Exploration by Cluff Resources •1995 0.4M oz delineated by Cluff Resources •1996 Acquisition of Cluff by Ashanti Goldfields •1997 Ashanti outline 3.5Moz Resource •1998 Ashanti acquires SAMAX •1999 Ashanti commence construction of 0.4Moz/ annum Mine The Geita Mine was co
Slide 12: Our Value: Finding Gold
Finding Gold Our Value Replacing and finding profitable gold reserves 12
Slide 13: Geita Exploration Strategy
Geita Exploration Strategy •Ascertain upside potential to ensure a balance between current and future mining & production rates is maintained •Maintain balance between new resource addition potentials and current depletions. •Monitoring the ZOI for any significant economical upside in terms of emerg
Slide 14: Prospecting Licenses and Mining area
Prospecting Licenses and Mining area Prospecting Area Mining Lease Area A combined area of approximately 300 km2 14
Slide 15: Geita Mineralised Blocks
Geita Mineralised Blocks Kukuluma Block Chipaka Matandani Kukuluma Geita Block Area 3 West Roberts Geita Hill Star & Comet Lone Cone Ridge 8 Nyankanga Nyamulilima Block Historically these three blocks are from three previous exploration companies - SAMAX (Kukuluma block), Ashanti (Geita block) and A
Slide 16: Geita Mineralised Trend
Geita Mineralised Trend Semi-continuous, fault jogged mineralised structure, trending generally WSW – ENE and dips N to NW, sub parallel to stratigraphy N l Hi l ita Ge Nyankanga Lone Cone Copcot Strike length of 5.3km Gold mineralisation and distribution is controlled by a complex interplay between
Slide 17: Nyankanga Section 50120E
Nyankanga Section 50120E Laterite Cover Southeast Northwest 1200 mN Designed Pit Outline 59m@7.2g/t 55m@7.4g/t 1000 mN 28m@11.2g/t Laterite 37m@4.3g/t Quartz Porphyry Felsic Porphyry 19m@7.3g/t 17m@7.3g/t 800 mN Hornblende rich Diorite Mineralisation Fine Grained Diorite Banded Ironstone Formation 0
Slide 18: Nyankanga Mineralisation (BIF Hosted)
Nyankanga Mineralisation (BIF Hosted) Pyrite 0 4 Chert cm Magnetite • Grades proportional to pyrite content • Silicification and quartz-carbonate alteration • Non – refractory (+90% metallurgical recovery) Area of uniform BIF as shown above would carry grades in the order of 20g/t over 10m thickness
Slide 19: Typical Geita Hill Section
Typical Geita Hill Section 5 8 4 47 30 C9 7 04 36 C0 22 05 38 R RC 05 2 01 RC GH R 1 01 13 2003 Design 12 GH RC DD GH DD GH D0 D0 GH GH D GH D GH GH 20m @ 2.7g/t Au 1400RL 10m @ 3.4g/t Au 15m @ 1.4g/t Au 2004 Preliminary 6m @ 2.3g/t Au Design 8m @ 9.7g/t Au 21m @ 4.9g/t Au 6m @ 18.6g/t Au 1200RL 9m
Slide 20: Grade variation with depth
Grade variation with depth Geita Hill Vrs Nyankanga Nyankanga 6 Grade (g/t) 4 Geita Hill 1150 RL 2 0 1520 1420 1320 1220 1120 1020 920 820 Depth (mRL) Geita Hill 1150RL Nyankanga GVP The upper portions of Geita Hill which is approximately 200m higher than the starting elevation of Nyankanga. The sli
Slide 21: Kukuluma Mineralised Trend
Kukuluma Mineralised Trend Mineralisation trend cut obliquely to a NW trending and steeply dipping BIF interbedded with distinctive units of carbonaceous pyritic pelites and felsic tuffs Strike length of 3km N Matandani Kukuluma Area 3 West Mineralisation at Kukuluma is controlled by the northwest o
Slide 22: Typical Kukuluma Section
Typical Kukuluma Section South North 5 T1 0 20 1R 04 31 R5 12 M 1R 5 A R2 A 1 11 1R 1D 2 R4 20 KK A1R A R20 A1 1R A 1 A A1 A 1 A 47m@3.60g/t 60m@3.14g/t 29m@4.18g/t Designed Pit Outline 13m@13.01g/t 72m@7.35g/t 15m@4.58g/t 95m@6.06g/t Oxide 1400 169m@4.83g/t Transitional Fold Limb Sulphide Gold Mine
Slide 23: Kukuluma Mineralisation
Kukuluma Mineralisation • Depth of Oxidation exceeds 100 metres • Brecciated banded ironstone and chert • Gold associated with pyrite, pyrrhotite and arsenopyrite • Primary Ore Refractory (Metallurgical recovery 66%) The decrease in plant recovery since 2002 from 92 to 91% is the results of mining t
Slide 24: Nyamulilima Mineralised Trend
Nyamulilima Mineralised Trend Mineralisation is focused within the base of a BIF unit which has been folded along a NW trending antiformal axis N Star & Comet Roberts Ridge 8 Mineralisation is hosted largely within QFP with high grades in the contacts with BIF, dipping approx. 35° SW Mineralisation
Slide 25: Regional Target Area
Regional Target Area Reassessing Resource addition potentials Priority Geita Trend follow up The focus here is to extend the Geita Trend both to the east and west based on recent exploration and also increase the reserves from the trend. Conversion rate within this area is more than 60%. The Nyamati
Slide 26: Exploration Expenditure from Y2000
Exploration Expenditure from Y2000 ($M) budget 8.3 7.7 5.5 5.6 5.2 4.9 2000 2001 2002 2003 2004 2005 During 2002, an intensive drilling programme was carried out at Nyankanga, Geita Hill, Star & Comet and Ridge 8. This continued through 2003 to 2004 during which some of the Inferred ounces were conv
Slide 27: 2003 End of Year Mineral Resource
2003 End of Year Mineral Resource DECEMBER 2002 DECEMBER 2003 Mt g/t Moz Mt g/t Au Moz MEASURED 40.26 3.48 4.51 40.93 3.13 4.12 INDICATED 67.98 4.29 9.38 86.61 3.80 10.59 INFERRED 21.28 3.51 2.40 39.93 3.03 3.88 TOTAL 129.52 3.91 16.29 167.47 3.45 18.59 The increase in Indicated ounces is the result
Slide 28: Mineral Resources Distribution as at December 2003
Mineral Resources Distribution as at December 2003 113.5Mt @ 3.77g/t Au (13.77Moz) Geita Block Nyamulilima Block 28.88Mt @ 2.89g/t Au (2.68Moz) 24.0Mt @ 2.68g/t Au (2.07Moz) Kukuluma Block The distribution here reflects where exploration should focus as the likelihood of increasing resources along s
Slide 29: Mineral Resource Growth (Moz)
Mineral Resource Growth (Moz) 18.6 16.3 14.6 14.5 11.9 6.9 3.5 1.6 0.4 1995 1996 1997 1998 1999 2000 2001 2002 2003 Discovery cost - $2.02/oz The trend 1999 shows that there would be two years of increasing resources and the third year staying the same. This implies that the 2004 resource is project
Slide 30: 2003 End of Ore Reserves
2003 End of Ore Reserves As at 26 December 2002 As at 26 December 2003 Tonnes Grade Ounces Tonnes Grade Ounces Ore Reserve (Mt) (g/t) (Moz) (Mt) (g/t) (Moz) Proven 30.81 3.67 3.63 28.38 3.30 3.01 Probable 39.63 4.55 5.80 42.24 4.17 5.67 Oxide 11.96 2.98 1.14 11.80 2.72 1.03 Transitional 5.70 2.92 0.
Slide 31: Ore Reserve Growth (Moz)
Ore Reserve Growth (Moz) 9.4 8.7 7.8 7.7 5.5 4.2 2.4 1997 1998 1999 2000 2001 2002 2003 Conversion cost - $2.09/oz In 1998 when Ashanti decided to go into production, the available Reserves was only 4.2Moz and this is why it was planned to produce 0.4Moz/annum. To date (end of 2004), 2.65Moz have be
Slide 32: Reserves Growth by pit
Reserves Growth by pit Reserves(Mozs) Pits 1999 2000 2001 2002 2003 Nyankanga 3.00 5.02 4.90 5.69 4.73 Geita Hill 1.29 1.37 1.39 2.03 1.90 Lone Cone 0.29 0.40 0.35 0.33 0.15 Kukuluma 0.67 0.66 0.68 0.49 0.33 Matandani 0.28 0.37 0.33 0.40 0.34 Chipaka 0.16 0.15 Area 3 West 0.04 0.03 Roberts 0.29 0.32
Slide 33: Our Value: Mining gold
Mining gold 63 Million Tons per annum Our Value We continuously improve the performance of our key resources – our people, our asset and our product 33
Slide 34: Nyankanga Ultimate Pit
Nyankanga Ultimate Pit Pit Orebody 34
Slide 35: Nyankanga cross-section showing face position (by year)
Nyankanga cross-section showing face position (by year) Cut 5 Cut 6 Cut 4 2007 2010 Pit Floor as at August 25, 2004 2004 2008 2011 Cut 3 2005 2009 2012 2004 2006 2010 2007 2011 2013 2012 2014 This slide show the effect of cut backs on ore from Nyankanga. From late 2005 to the whole of 2006, mining w
Slide 36: Geita Hill Ultimate Pit
Geita Hill Ultimate Pit ANGLOGOLD ASHANTI 36
Slide 37: Lone Cone Pits
Lone Cone Pits North South Central 37
Slide 38: Kukuluma and Matandani Pits
Kukuluma and Matandani Pits Kukuluma Matandani 38
Slide 39: Chipaka ultimate Pit
Chipaka ultimate Pit 39
Slide 40: Nyamulilima Pits
Nyamulilima Pits Ridge-8 Pits Star & Comets Pits Ridge-8 Waste Dump ROM Stockpile Roberts Pit Star & Comets Waste Dump Roberts Waste Dump 40
Slide 41: Our Value: Processing gold
Processing gold 6 Million Tons Our Value Profitable business 41
Slide 42: Process Plant
Process Plant Conventional gold processing plant i.e. Primary crushing, SABC milling circuit (with gravity) and Leach/CIL Key Design Parameters Mill throughput t/month 400,000 Mill throughput t/hour 500 Leach Residence Time hours 26 42
Slide 43: Secondary Crushing Plant
Secondary Crushing Plant • Feasibility study conducted during 2001 to upgrade plant capacity • Project approval given in April 2002 • Total Capital US$4.4m (including 2 new leach tanks and mill classification circuit upgrade) • Successfully commissioned end-December 2002 • Plant capacity upgraded to
Slide 44: Process Plant tonnes per month
Process Plant 550,000 500,000 450,000 tonnes per month 400,000 Secondary Crushing 350,000 Plant Operational 300,000 250,000 200,000 150,000 Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec 2000 2001 2002 2003 2004 44
Slide 45: Our Value: Key Results
Key Results Our Value We consistently strive to generate competitive shareholder returns 45
Slide 46: Total Mined
Total Mined 25 Million Cubic Meters 22.3 20.0 20 17.8 15 12.3 10 6.5 5 0 2000 2001 2002 2003 2004 Year 46
Slide 47: Plant Throughput
Plant Throughput 6 5.69 5.71 Throughput (Mt) 5 4.98 4 4.58 3 2.06 2 1 0 2000 2001 2002 2003 2004 Year 47
Slide 48: Plant grade
Plant grade 5 4.21 3.91 3.92 3.93 4 grade (g/t) 2.81 3 2 1 0 2000 2001 2002 2003 2004 Year 48
Slide 49: Gold Production
Gold Production 692 700 661 600 579 Ounces '000 546 500 400 300 200 177 100 0 2000 2001 2002 2003 2004 Year 49
Slide 50: Gold Recovery
Gold Recovery 100 Recovery (%) 95 92.9 93.1 92.1 91.7 91.3 90 85 2000 2001 2002 2003 2004 Year Recoveries are reducing purely due to the occasional input of Kukuluma transitional material, particularly during 3 months of 2004 50
Slide 51: Total Cash Cost
Total Cash Cost 300 242 US$/ Ounce 200 183 175 156 147 100 0 2000 2001 2002 2003 2004 Year 51
Slide 52: Processing cost per tonne
$/t (processing) $/t (processing) 9 8 7.68 7.51 7.45 7 6.86 6 5.35 5 4 3 2 1 0 2000 2001 2002 2003 2004 52
Slide 53: Mining cost per tonne
$/t (mining) 2.5 2 1.91 1.5 1.15 1 1.02 0.96 0.77 0.5 0 2000 2001 2002 2003 2004 53
Slide 54: Operating Cost Breakdown
Operating Cost Breakdown ANGLOGOLD ASHANTI
Slide 55: Forecast for 2005
Forecast for 2005 The following are the expected operating parameters for 2005 • Production - 600 000oz • Total cash costs - $240/oz • Capex - $20m • Grade - sligthly lower 55
Slide 56: Stripping ratio
Stripping ratio Stripping Ratio 12 10 9.9 8.7 8.9 8 8 6.5 6 4 2 0 2000 2001 2002 2003 2004 56
Slide 57: Key challenges going forward
Key challenges going forward • Mining contract cost • Fuel • Power • Transportation 57
Slide 58: Safety, Health & Environment
Safety, Health & Environment Our Value We strive to create a workplace which is free of occupational injury and illness 58
Slide 59: Safety
Safety • Safety at GGM is the number one priority. • The mine utilises the National Occupational Safety Association (NOSA) system to monitor our safety programs. In 2003 the mine gained 4 star rating from NOSA following their annual audit. This achievement was maintained in 2004 with an increased pe
Slide 60: Safety Statistics 2004
Safety Statistics 2004 • Total hours worked – 8,016,943 • Lost Time Incidents – 8 • LTIFR – 1.0 • Fatal accidents – 0 60
Slide 61: Health
Health • GGM has a clinic staffed by qualified medical practitioners which provides medical treatment and health surveillance to all employees. • The medical staff are always on standby for medical emergencies and have a four bed ward to take care of patients who may need to be monitored overnight.
Slide 62: Environmental Policy
Environmental Policy Geita Gold Mine is committed to continuous improvement in social and environmental performance, believing that these improvements are good business practices and contribute to its shareholder confidence. The commitment includes an emphasis on working towards minimising the impac
Slide 63: Indicators for Environmental Excellence
Indicators for Environmental Excellence ISO14001 re-certification audit results • “The findings of the surveillance assessment are that GGML and contractors are implementing the HSE management system across the site at a consistently high level.” • GGM has continuously retained its certification und
Slide 64: Environment – Re-forestation
Environment – Re-forestation Land disturbance is managed through Permit to Clear and Disturbed Land Register. First seeding began in 2001/02 season by broadcast seeding 2002/03 season began direct sowing of seeds, with tree seedlings for special areas completed. 2003/04 raised 60,000+ tree seedlings
Slide 65: Environment Monitoring
Environment Air Sampling Water Sampling Monitoring Its very important for us to check that we are not affecting environment around us. We have a network of nearly 100 stations of different types stretching from Geita itself to the Lake, where we monitor in great details the air and any dust in the a
Slide 66: Zero discharge policy/cyanide management
Zero discharge policy/cyanide management • GGM has zero discharge policy. This means that there are no releases of contaminated water. • Cyanide-bearing water at the Tailings Storage Facility is recycled to the processing plant. • GGM tests regularly at many sites for possible seepage of cyanide – n
Slide 67: Human Resources
Human Resources Our Value Improve the performance of our people 67
Slide 68: Geita Workforce
Geita Workforce 2002 2003 2004 Geita Gold Mining Ltd. Tanzania Nationals 560 585 610 Expatriates 49 53 50 609 638 660 Contractors Tanzania Nationals 1,280 1,607 1,511 Expatriates 126 133 107 1,406 1,740 1,618 Grand Total 2,015 2,378 2,278 Annual training budget of $1.4M 68
Slide 69: Community Development
Community Development Our value Partnership with the community We involve the host community in various projects. These project include nurseries, cooperative farming venture, seed collection, cleaning and planting. The slide shows women from the Nyakabale village cleaning seeds for rehabilitation p
Slide 70: HIV/AIDS
HIV/ AIDS Kilimanjaro Challenge VCT Clinic 300 million Tshilling 300 Million TSHS donations to AMREF and TANESA. Of the 40,000 people that have climbed the Kilimanjaro, 900 of the number are Tanzanians of which 120 are from Geita 70
Slide 71: Investment in the Community: Health
Investment in the Community Housing for District Medical Staff Construction of operating theatre Health Government District hospitals: Build operating Theatre, Built Staff Quarters,, Renovated Mortuary, Landscaping, Equipment for Operating Theater 71
Slide 72: Investment in the Community: Water
Investment in the Community Water 2.736 Million used in water projects A pipeline was built from Lake Victoria at a cost of 2 Billion TSHS. The pipeline has 11 off takes that directly benefit the communities in which it passes 72
Slide 73: Investment in the Community: Education
Investment in the Community Kamena Secondary School University of Dar Es Salaam Education 210 Million spent on education projects Student attachments, twice a year 73
Slide 74: Investment in the Community: Nyakabale Farm Project
Investment in the Community Nyakabale Farm Project Farm supplies produce to the village Training 74
Slide 75: Asante Sana
ANGLOGOLD ASHANTI Thank you; 75