D I V E R S I F I E D , D E C I S I V E , S U S T A I N A B L E B U S I N E S S
I N T E G R A T E D R E P O R T 2 0 1 9
V I S I O N
T O B E T H E
LEADING
MINING
COMPANY
CONTENTS
M I S S I O N
To crea t e value f or our
shareholders, our employees and
our business and social par tners
through saf el y and responsibl y
exploring, mining and marketing
our product s.
V A L U E S
Our values and belief s guide all
decision-making and act ivities
in t he conduct of our business
to ensure we make a posit ive
impact . The y underpin our
environmental, social and
governance (ESG) perf ormance.
ABOUT ANGLOGOLD ASHANTI
Who we are – corporate profile
Key features of the year
Our strategy and investment case
How we create value – our business model
Economic value-added statement
Chairman’s letter
WORLD IN WHICH WE OPERATE
Our external operating environment
Managing our risks and opportunities
Stakeholder engagement and material issues
DELIVERING ON OUR STRATEGY
CEO’s review and outlook
Focus on people, safety and sustainability
People are our business
Managing ESG impacts for sustainability
Ensure financial flexibility and optimise overhead costs and capital expenditure
CFO’s review
Financial review – three-year statistics
Improve portfolio quality and maintain long-term optionality
Regional reviews
Three-year statistics by operation
Mineral Resource and Ore Reserve – summary
Exploration and projects – planning for the future
LEADERSHIP AND ACCOUNTABILITY
Audit and Risk Committee: chairperson’s report
Corporate governance, board and executive committee
Remuneration and Human Resources Committee: chairperson’s letter
Remuneration report – overview of remuneration policy
Remuneration report – implementation report
CORPORATE INFORMATION
Forward-looking statements
Administration and corporate information
V A L U E S
AngloGold Ashanti’s 2019 suite of reports comprises:
Integrated Report
*
Notice of Annual General Meeting and Summarised
Financial Information (Notice of Meeting)
Safety and
Health
Dignity and
respect
Sunrise Dam
Accountability
Communities
Diversity
Environment
Sustainability Report
Mineral Resource and Ore Reserve Report
Reporting website
* Publication has been delayed as the forthcoming annual general meeting has been postponed.
Annual Financial Statements
See www.aga-reports.com.
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10
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41
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56
57
64
67
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94
102
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108
110
119
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138
158
159
PAGE 1
2019 AB OU T O UR REPORT
Scope, boundary and reporting principles
This integrated annual report, our primary report, covers the year
from 1 January to 31 December 2019 and describes the relationship
between AngloGold Ashanti’s operational, financial and sustainable
development performances and our overarching governance
framework, how we manage risks and opportunities and our
remuneration philosophy. In our reporting, we are committed to
being honest and transparent. Structured in line with our strategic
objectives, this report provides a concise, balanced review of our
overall performance and progress made in delivering on our strategy.
This is done within the context of our external operating environment,
the ensuing material opportunities, risks and stakeholder concerns
– as well as the long-term sustainability of our business. We also
discuss the resource capitals used as we conduct business, our
impacts, their interrelatedness and the trade-offs made in order to
deliver on our objectives. More detailed information on our sustainable
development performance and material issues is presented in the
and in the individual , all of which are available online 1 .
In addition to complying with the King IV Report on Corporate
Governance for South Africa, 2016 (King IV), this integrated report
also complies with the International Integrated Reporting Council’s
Framework on Integrated Reporting, the South African Companies
Act, No.71 of 2008 (as amended) and the JSE Listings Requirements.
We have also considered the contribution we make to the United
Nations Sustainable Development Goals (SDGs), our support of the
World Gold Council’s recently introduced Responsible Gold Mining
Principles, our responsibilities as a member of the International
Council on Mining and Metals (ICMM) and other related targets.
This is a group level report covering the entire Company, its joint
ventures and investments. While performance and targets are
reported regionally, we report fully on all operations managed by
AngloGold Ashanti. Those operations in which we have an ownership
interest but do not manage – Kibali and Morila – are partially reported.
Several asset sales have been recently announced or are currently
underway (see Corporate status – an update in the Corporate
profile). There were no significant changes to the scope, boundary
or measurement methods used in this report. Any comparative
restatements are indicated.
Information on joint ventures and other interests is provided if
considered material. Production, costs and capital expenditure data
are attributable, unless otherwise indicated. Employee data and
average workforce data are reported for AngloGold Ashanti with
joint ventures reported as attributable. Employee data includes both
permanent employees and contractors. Any significant, material event
that occurs between the end of the financial year and the date on
which this report is approved is included.
1 www.aga-reports.com
Materiality and target audience
This report is aimed primarily at current and potential
investors, and provides information considered to be
material and of interest to them, enabling an informed
assessment of our ability to create value and the future
viability of our business. This integrated report will also
be useful to other stakeholders – communities, various
levels of government, regulators, non-governmental
organisations (NGOs), among others – who have an
interest in our performance and outlook.
The material risks and issues reported are those
considered most likely to affect the sustainability of
our business in the short, medium and long term.
In identifying these, as well as any opportunities
identified, we have considered our operating context
and stakeholder feedback received during the year. Our
most material stakeholder issues, which are referenced
in this report, are discussed more fully in the .
Approvals and assurance
The information presented in this report has been subject to either
an internal or external audit. Internal audit and approval processes
include, among others, regular management assurance and reviews
of information and data published.
In addition, our operations are subjected to risk-based, integrated,
combined assurance reviews of the commercial, safety and
sustainability aspects of our business. The outcomes of these
internal processes and external assurances, as well as of any
independent technical reviews, provide reasonable assurance to
allow the board, on the recommendation of the Audit and Risk
Committee, to determine the effectiveness of our internal control
systems and procedures, and thus to ensure the accuracy of the
information presented.
Financial information has been externally audited and signed off by
Ernst & Young (EY) while certain, selected sustainability performance
indicators reported have also been assured by EY – for further
details, see the .
Navigating this document
1
Indicates a hyperlink to an external source of information. All references to
other 2019 reports are hyperlinked, as are references to other sections in
this report. These hyperlinks are indicated by orange text.
Note: Unless otherwise stated, $ or dollar refers to US dollar throughout this
report. All information is attributable unless otherwise specified.
Online Integrated Report 2019
In addition to housing the full suite of 2019 annual
reports, our online version of this integrated report
presents its contents in an easily accessible format.
Legend of icons used in this report
Strategic focus areas
Focus on people, safety and sustainability
Ensure financial flexibility
Optimise overhead, costs and capital expenditure
Improve portfolio quality
Material issues 1
Employee safety
Employee and community health
Contributing to resilient, self-sustaining communities
Responsible environmental stewardship
Employee, community and asset security
Artisanal and small-scale mining
Respecting human rights
Talent management, skills development and
employee relations
Maintain long-term optionality
Navigating political uncertainty and risk
1 See for further detail on these material issues
Our five capital resource inputs
NATURAL
CAPITAL
HUMAN AND
INTELLECTUAL CAPITAL
MANUFACTURED
CAPITAL
FINANCIAL
CAPITAL
SOCIAL AND
RELATIONSHIP CAPITAL
Directors’ statement of responsibility and commitment
The AngloGold Ashanti board, together with executive management, views the matters discussed in this report to be those
that most influence our ability to successfully achieve our strategic objectives, to manage the risks we face and to create value.
It is the board’s collective opinion that the Integrated Report 2019 presents a balanced and fair account of AngloGold Ashanti,
our performance in the past year and our outlook for the short, medium and the longer term. The board confirms AngloGold
Ashanti’s commitment to ethical leadership, governance, and to our corporate citizenship and assurance responsibilities, which
are reflected throughout this report, in line with King IV, Principle 5.
The board, assisted by the Audit and Risk and the Social, Ethics and Sustainability committees, is ultimately responsible for
ensuring and confirming the integrity and completeness of this report as well as of the entire suite of 2019 reports. Having
applied its collective mind to the preparation, information and presentation of this report, the board resolved that all material
issues have been addressed and that this report presents a fair and balanced view of AngloGold Ashanti’s integrated
performance for the year ended 31 December 2019.
This report was approved by the board of directors on 27 March 2020.
Chairman
Sipho M Pityana
Chief Executive Officer
Kelvin Dushnisky
Chief Financial Officer
Christine Ramon
Chairperson: Audit and
Risk Committee
Rhidwaan Gasant
Chairperson: Social, Ethics and
Sustainability Committee
Nozipho January-Bardill
Chairperson: Remuneration and
Human Resources Committee
Maria Richter
Independent non-executive directors:
Alan Ferguson, Albert Garner, Nelisiwe Magubane, Maria Ramos, Rodney Ruston, Jochen Tilk
PAGE 2
PAGE 3
2019 WH O W E AR E – CO RPORATE PROFILE
A ngloGold Ashanti Limited ( AngloGol d Asha nt i ) i s a n i n d e p e n de nt , g lo ba l g o l d m i n i ng c o m pa ny w i th a d i v ers e,
high -q uality portfolio of operations, pr oj ect s a n d exp l o ra ti o n a ct i vi ti e s a c r o s s t e n c o u nt ri e s o n f o u r c o n ti n en ts .
While gold is our principal product, we al so p r o du c e s i l ve r ( Arge nt in a ) a n d s u l p hu r i c a c i d (Bra zi l ) a s
by-produ cts and will pursue value-cre ati n g o pp or tu n i ti e s i n o t he r mi ne ra l s w he re we c a n l e v e ra g e o u r ex i st i ng
assets, skills and experience to enh an ce va l ue cre a ti o n.
ANGLOGOLD ASHANTI AT A GLANCE
Geographic shareholdings (%)
OUR
FOOTPRINT
• Third largest gold producer globally and the largest on
the African continent, producing 3.3Moz and employing
34,263 people in 2019
• Leading responsible gold miner in meaningful
partnership with host communities and government –
we aim to create valuable outcomes for stakeholders
over the long term
• Listed on four stock exchanges around the world –
the Johannesburg, New York, Australian and Ghana
exchanges – and included in the JSE Top 40 Index,
FTSE/JSE Responsible Investment Index Series (of
the FTSE4Good Index), Responsible Mining Index and
the Dow Jones Sustainability Indices (now part of S&P
Global Inc) and the Bloomberg Gender-Equality Index
• A geographically diverse shareholder base includes
some of the world’s largest financial institutions
• Market capitalisation of $9.28bn as at
31 December 2019
CORPORATE DEVELOPMENTS
• Obuasi redevelopment achieved first gold pour in
December 2019
• Sale of South African and Mali assets announced
• Sale process of asset in Argentina advanced
• Closure at Yatela is on track and its sale is pending,
subject to fulfillment of conditions precedent
South Africa
United Kingdom
Europe
North America
Asia
Rest of the world and other
24
16
7
43
6
4
4
5
6
8
7
9
2
3
1
10
CONTINENTS 14
4
3
4
OPERATIONS
PROJECTS
JOINT VENTURE
PARTNERS
Geita
Our operations and projects are grouped regionally as follows:
AMERICAS
1 Argentina
Cerro Vanguardia (92.5%) (1)
2 Brazil
Serra Grande
AGA Mineração
3 Colombia
Gramalote (51%)*
La Colosa
Quebradona (2)
CONTINENTAL AFRICA
4 Guinea
Siguiri (85%)
5 Mali
Morila (40%) (5)
Sadiola (41%) (3)
6 Ghana
Iduapriem
Obuasi (4)
7
Democratic Republic of the
Congo (DRC)
Kibali (45%) (5)
8 Tanzania
Geita
SOUTH AFRICA
9 South Africa
Mponeng (6)
Surface Operations (6)
AUSTRALIA
10 Australia
Sunrise Dam
Tropicana (70%)
Note: Percentages indicate the ownership interest held by AngloGold Ashanti.
All operations are 100%-owned unless otherwise indicated
Legend
Operations
Projects
Asset sale underway
Greenfields exploration
(1) Sale process at an advanced stage
(2)
Change in ownership to 100% as B2Gold's shareholding was converted to a share of profits. Will be a copper mine producing
gold and silver as by-products
(3) Agreement and sale announced December 2019
(4) Obuasi's redevelopment project began in 2019
(5) Kibali and Morila are managed and operated by Barrick Gold Corporation (Barrick)
(6) Agreement and sale announced post year end in February 2020
* An agreement reached for B2Gold to earn back 50:50 partnership effective from 1 January 2020
PAGE 4
PAGE 5
2019
KEY FE AT URES OF THE YEAR
IMPROVED PORTFOLIO
2019 – another redefining year
for AngloGold Ashanti.
We improved the
quality of our portfolio, balanced competing
3.3Moz
production in line with guidance
(2018: 3.4Moz)
3.5Moz
of Ore Reserve added in 2019
before depletion
0.91 times
adjusted net debt to adjusted
EBITDA
capital needs, delivered the Obuasi
redevelopment project on time and within
budget, supplemented the Ore Reser ve in our
core portfolio outside South Africa, further
reduced debt and brought balance sheet
leverage below target and grew our
dividend, all while managing our
operations through their safest
year on record.
$998/oz
all-in sustaining cost
(2018: $976/oz)
$814m
capital expenditure
(2018: $721m)
57% increase in dividends per share
$776/oz
total cash cost
(2018: $773/oz)
$127m
free cash flow
(2018:$67m)
REPORTABLE
ENVIRONMENTAL
INCIDENTS3
(2018: 2)
ZERO
fatal ities
in 2019
PAGE 6
PAGE 7
2019 OUR S TR ATEGY AND INVESTMENT CAS E
OUR CORE
STRATEGIC
FOCUS AREAS
O pti m is e o v erh e a d, c o sts
a n d c a pital e x p e n diture
ortfolio q
prove p
ality
Im
u
E
n
s
u
r
e
fi
n
a
n
c
i
a
l
fl
e
x
i
b
i
l
i
t
y
Supporting our
strateg y for
sustainable cash
flow im pro vements
and returns
Focus on people,
safety and sustainability
n
ality
ptio
m o
-te
g
n
r
aintain lo
M
People are the
foundation of our
business. Our business
must operate according
to our values if it is to
remain sustainable in the
long term.
See and
We must ensure our
balance sheet always
remains able to meet
our core funding needs.
All spending decisions
must be thoroughly
scrutinised
to ensure they are
optimally structured and
necessary to fulfil our
core business objective.
We have a portfolio of
assets that must
be actively managed to
improve the
overall mix of our
production base as we
strive for a competitive
valuation as a business.
While we are focused
on ensuring the most
efficient day-to-day
operation of our
business, we must keep
a close eye on creating
a competitive pipeline of
long-term opportunities.
See ,
and
See and
See and
See
and
C onsistent deliver y on targets, prudent cost management, maintaining
balance sheet flexibility, and optionality to deliver value-adding growth, all
while working towards zero harm in the workplace
O U R I N V E S T M E N T C A S E :
Prioritising
margins over
volume; and
improving cost
management
Ongoing portfolio
improvements and
rationalisation,
extensive and
proven world-
class exploration
programme to
maintain high-
quality portfolio of
long-life assets with
a track record of
disciplined capital
allocation and
project delivery
Transparent,
decisive
management
team, focused on
minimising risk
and improving
shareholder
returns
Clear and
predictable
strategic approach
with a decisive
response to a
lower gold price
and maintaining
discipline in a
higher gold price
environment
Balance sheet
flexibility;
appropriate liquidity,
and maturities
while within set
covenant ratio
Well-developed
engagement
model ensures
strong stakeholder
relationships and
maintains licence
to operate
STEADY PROGRESS
Increase in free
cash flow
Increase in average
gold price received
Decline in adjusted
net debt
Improvement
in AIFR
90%
10%
5%
31%
2019: $127m
2019: $1,387/oz
2019: $1.572bn
2019: 3.31
2018: $67m
2018: $1,261/oz
2018: $1.659bn
2018: 4.81
PAGE 8
PAGE 9
2019
HOW W E CREATE VALUE – OUR BUSINES S MODEL
WHAT WE DO
W e creat e value by safely and respon si b l y mi n i n g a n d ma r ke ti n g o u r p r o d uc t s . De l i v e r i n g o n o u r m i s s i on
entails ensuring that our business mo de l a n d s tra t e g y a re su f fi c i e n tl y r o b u s t a n d fl ex i b l e t o a d a p t t o t h e
ever-changing, dynamic world in wh i ch w e o p e ra t e.
Understanding the world in which we operate, how it impacts us, stakeholder expectations and how we impact others, is essential to
successful delivery on our strategy and value creation. This understanding enables effective planning to mitigate risks, act on opportunities
and deliver on our strategic objectives.
UNDERSTANDING OUR CONTEXT
Operating environment
Political environments, location, global macro-economics,
and financial markets all have an impact on our ability
to create value. Analysing, monitoring and evaluating
variables and trends in our external environment guide us
in identifying and managing risks and opportunities, and
delivery on our strategy, enabling us to create value in the
short and long term.
Key risks and opportunities
Risks:
Elevated political and country risk
Operational underperformance
Delivery of growth projects
Adverse gold, commodity and currency
movements
Cost competitiveness
Covid-19*: see
Serra Grande
Opportunities:
Stakeholder relations
Similarly, our stakeholders can potentially have an impact
on our operations and licence to operate. Their needs
and expectations, our impact on them and the quality
of our relationships with them can potentially affect our
performance and ability to create value. Positive, transparent
and regular interaction with stakeholders helps us to identify
and better manage those material issues which matter most
to stakeholders.
Balanced and disciplined approach
to capital allocation
Portfolio optionality through exploration and
greenfield projects
Business planning, optimisation
and streamlining portfolio
Improved production mix and cost profile
Higher gold price
Material issues 1
The material matters identified through feedback from our stakeholder engagement
in terms of environmental, social and governance (ESG) factors are:
Environment:
Responsible environmental stewardship
Social:
Employee safety
Serra Grande
Employee and community health
Contributing to resilient, self-sustaining communities
Employee, community and asset security
Artisanal and small-scale mining
Talent management, skills development and employee relations
Governance:
Respecting human rights
Navigating political uncertainty and risk
1 See for further detail on these material issues
GOVERNANCE
All that we do is guided by an overarching governance framework – decision-making, the conduct of
our business and stakeholder engagement
Our core business activities are …
1
3
Exploration and mine
development
Generating revenue,
financial management
STRATEGY
AND STRATEGIC
OBJECTIVES
Mining, processing
and refining
Rehabilitation
and closure
2
4
Simultaneously, we acknowledge and act on our corporate social responsibilities
Our strategy is …
…to generate sustainable cash flow improvements and shareholder
returns by focusing on five core strategic areas, each of which
drives our plans for inward investment to enable improved quality of
production, increased margins, extended mine lives and a portfolio
that is viable in the longer term.
O pti m is e o v erh e a d, c o sts
a n d c a pital e x p e n diture
Im
prove p
ortfolio q
u
ality
E
n
s
u
r
e
fi
n
a
n
c
i
a
l
fl
e
x
i
b
i
l
i
t
y
Supporting our
strateg y for
sustainable cash
flow impro vements
and returns
Focus on people,
safety and sustainability
n
ality
ptio
m o
-te
g
n
r
aintain lo
M
Strategic planning goes hand in hand with the responsible and efficient
allocation of resources. See .
Creating and sharing value
Our overall aim is to create sustained long-
term value for our stakeholders – employees,
communities, investors and other business and
social partners – and to leave communities and
society better off for our having been there.
We ensure that we deliver on our mission and
strategy and that we respond thoughtfully to
opportunities while managing and minimising
risks effectively.
Value by stakeholder:
For investors
Consistent, sustained returns by creating value,
delivering sustainable free cash flows and growing
dividends
For employees
Employment means learning and earning – training
and skills development. This includes continuously
nurturing a culture of accountability and respect
For communities
Investment in host communities – jobs, local
economic development, infrastructure, health and
education. We work in partnership to ensure that
communities are socially and economically viable
post mining. This includes promoting and facilitating
local procurement and enterprise development as
well as addressing and mitigating our social and
environmental impacts
For governments
Contributions to the national fiscus, both directly and
indirectly, with the payment of royalties and taxes
and personal income tax on behalf of employees
PAGE 10
PAGE 11
2019
EC O N OMIC VALUE-ADDED STATEMENT
For the year ended 31 December 2019
GENERATION AND DISTRIBUTION OF ECONOMIC VALUE
ECONOMIC VALUE GENERATED
US dollar million
Gold sales and by-product income (1)
Interest received
Royalties received
Profit/(loss) from sale of assets
Income from investments
Other income
Total economic value generated
ECONOMIC VALUE DISTRIBUTED
US dollar million
$4.26bn
total economic value generated
2019
2018
4,080
3,943
20
3
1
139
16
17
10
(20)
95
–
4,259
4,045
2019
2018
Related SDGs
Breakdown of economic value distributed – 2019
CONTRIBUTING TO THE SDGs
ECONOMIC VALUE SUMMARY
Total distributed by recipient (2)
3,316
3,326
$559m
$808m
Employees
Salaries and wages
Training and development
Government
Current tax (3)
Royalties (4)
Employee taxes (4)
Production, property and other taxes (4)
559
547
12
808
298
160
236
114
713
698
15
717
242
151
234
90
$26m
$1,715m
$208m
ECONOMIC VALUE RETAINED
Community (5)
26
21
Suppliers and services
1,715
1,673
Providers of capital
Finance costs and unwinding of obligations
Dividends
208
181
27
202
178
24
943
719
(1) Gold income increased by 3% due to the higher gold price received for the year 2019
(2) Economic distribution providing human, financial, social, natural and manufactured capital, guided by business objectives and material issues identified
through the operating process to ensure sustainable long-term value retention for stakeholders, underpinned by our key behavioural programme
operational excellence, implemented at every step of the business from exploration through the entire chain to divestment/disposal
(3) Current taxation includes normal taxation and withholding taxation on dividends paid per jurisdiction in which the group operates
(4) Employee, production, property and other taxes and royalties reported on a cash basis
(5) Community and social investments exclude expenditure by equity accounted joint ventures
Suppliers and services
Government
Employees
Providers of capital
Communities
$m
1,715
808
559
208
26
Total distributed:
$3.32bn
A c r o s s t h e g r o u p , r e f u n d s a r e d u e t o A n g l o G o l d A s h a n t i f o r i n p u t t a x
a n d f u e l d u t i e s f o r a n a m o u n t o f $ 3 2 9 m ( 2 0 1 8 : $ 2 7 6 m ) , i n c l u d i n g
a t t r i b u t a b l e a m o u n t s o f e q u i t y - a c c o u n t e d j o i n t v e n t u r e s , w h i c h h a v e
r e m a i n e d o u t s t a n d i n g f o r p e r i o d s l o n g e r t h a n t h o s e p r o v i d e d f o r i n t h e
r e s p e c t i v e s t a t u t e s .
Value distributed
78%
Value retained for growth
22%
PAGE 12
PAGE 13
2019
CH A IR MA N'S LETT ER
C o m m i t t e d t o t h e r e s p o n s i b l e
c o n d u c t o f o u r b u s i n e s s , i n
l i n e w i t h o u r v a l u e s
Sipho M. Pityana
Chairman
FOCUS
ON ESG
Dear Stakeholder,
The year 2019 started on a tragic note when on 25 January the
Brumadinho tailings dam in Brazil suffered a catastrophic failure, wiping
everything in its wake and claiming 270 lives. The latter part of 2019
saw the emergence of an infectious ailment caused by a new virus, the
coronavirus (covid-19), whose first epicentre was China before spreading
across the globe, upending lives, disrupting economic activity and
sending markets into a tailspin.
For AngloGold Ashanti, last year marked a record safety performance
for the Company and an impressive delivery on our critical strategic
objectives. For the first time in the history of this business, we recorded
zero fatalities and the all injury frequency rate, the broadest measure of
workplace safety, decreased to 3.31 injuries per million hours worked
compared to 4.81 injuries per million hours worked in 2018. These
unprecedented achievements are a result of cumulative investment,
many years of sustained effort and an unwavering commitment to our
ambition of zero harm.
Regrettably, in March 2020, a fatal seismic-related incident cost
the lives of three colleagues: Johannes Radebe, Lucas Maapea,
and Xolani Ngqwemese. This was to be followed soon after by a
tramming-related accident in which Thabo Rakometsi died. We
extend our sincere condolences to the families, colleagues, friends
and communities of the deceased. A serious setback no doubt, but
also a rude reminder, if there was ever need for one, that we must
constantly guard against complacency while maintaining an emphasis
on the constant need for vigilance.
Shaken by the Brumadinho tailings dam collapse in Brazil that resulted
in a deluge of toxic mud that inundated people, homes and damaged
the environment, we have actively worked with regulators and local
communities to ensure confidence in the design and safety of our tailings
storage facilities (TSFs), and in our related governance and oversight.
Our board site visit to our operations Brazil left us with an increased
resolve to do even more to ensure the integrity of our TSFs.
This unfortunate event and other developments that include evolving
societal expectations of companies, highlight the importance of
environment, sustainability, governance and data stewardship (ESG&D)
risks and opportunities across industry sectors in terms of their ability to
destroy, create and/or sustain value. Failure to effectively manage these
factors risks lost business opportunities and the erosion of investor,
employee and societal trust.
PAGE 14
ESG&D focus
AngloGold Ashanti is driven by value-accretive strategies to achieve
its business and financial objectives and we conduct our business
responsibly, in line with our values. We carry a burden of responsibility
for environmental stewardship, social justice, good governance,
good corporate citizenship, diversity and inclusion and human rights,
collectively characterised as ESG&D considerations. Hence our efforts
to ensure that host communities share with us the benefits of mining,
and that the countries in which we operate see fiscal benefits from the
responsible development of their natural resources.
ESG&D is core to the strategy and long-term sustainability and health of
our business. We accept the need to drive consistent improvement in
this regard, and this is reflected in our commitment to decent work for
our employees, enhancing workforce diversity including race and gender
in our organisation, and reducing our carbon emissions. For more on
these, see in this report.
Our ESG&D performance receives constant attention and scrutiny from
the Social, Ethics and Sustainability Committee of the board. Equally
important, we are a business that is committed to harmonising the
needs of all its stakeholders. Similarly, the board Investment Committee
has ensured that we allocate our capital responsibly, efficiently and that
we invest in the sustainability of the business and create value for all
our stakeholders. This integrated report, and the accompanying ,
provide an account of our efforts in this regard. While we have made
good progress, there remains much more to be done.
We are encouraged that ESG&D considerations have become
increasingly important for institutional investors, who are rightly paying
ever closer attention to the non-financial aspects of the performance
of the companies in which they invest. It is encouraging for us to see
private capital being deployed to solve some of society’s most pressing
challenges, notably climate change, entrenched social inequality,
sustainability and environmental issues, including water security,
biodiversity loss, waste and plastics in the ocean. We have anchored
our priorities with the targets set out in the United Nations Sustainable
Development Goals (the SDGs).
Simultaneously, we seek to ensure that the providers of capital – who
have ample alternative placement options – are also well rewarded for
investing in our Company. For us to achieve all of those things, we seek
to ensure that we allocate our capital responsibly and efficiently and
invest in the long-term health of our business.
Ensuring that these often-disparate needs are met to the greatest extent
possible – and that expectations are appropriately managed along the
way – lies at the heart of our commitment to ensure we maintain and
strengthen our licence to operate. Achieving that balance requires honest
dialogue and a clear understanding of these often-competing needs.
Capital allocation and asset sales
Our asset rationalisation strategy is driven by a single-minded disciplined
asset capital allocation focus. Hence our decision to sell our assets in
Mali, Argentina and South Africa while simultaneously recommissioning
Obuasi in Ghana. These decisions have inevitably attracted much
attention, particularly given our long operating history in each jurisdiction.
We are jurisdiction agnostic and asset quality focused.
As a board, we are determined to ensure that the Company’s finite
capital is appropriately allocated to realise those opportunities that will
deliver the best returns through the economic cycle. Given the breadth of
our portfolio, we have several options from which to choose.
We firmly believe that by placing these assets in the hands of responsible
new owners who have different investment priorities to ours, – Sadiola,
Cerro Vanguardia, Mine Waste Solutions and Mponeng – will have longer
and more productive lives, thereby securing jobs for our employees for a
longer period than they would have had in our hands.
The sale of the South African assets, agreed soon after our financial year
end, is a case in point. Harmony Gold Mining Limited (Harmony), a deep-
level mining specialist with a long history of operating in South Africa,
has already indicated it will do the work and due diligence necessary to
extend the life of Mponeng, maintaining desperately needed jobs, tax
revenues and associated benefits, well beyond the timespan we had
envisaged.
Gold price tailwind and volatile economic
environment
The gold price provided a strong tailwind during the year, as investors
once again migrated toward its safe-haven qualities. The growing
global stock of negative-yielding debt and a steady flow of unsettling
macro-economic and geopolitical news from across the world
reinforced the attractiveness of gold as a hedge. These factors have
only increased in the new year, with heightened Iran-US tensions and
the worrying prospect of a global coronavirus pandemic sending bullion
to its highest level in more than six years. Additionally, tension between
oil producers has put pressure on the oil price and markets are in
turmoil with no end in sight.
The board and management remain resolute that we will not replicate
the gold industry’s mistakes of the past, in allowing rising costs,
poor investment choices and undisciplined acquisitions to erode
the margin benefit that the current higher gold price brings. The
Investment Committee provides robust oversight to ensure this
discipline is maintained.
We will continue to invest in our orebodies to extend their lives, provide
much-needed operating flexibility and bring on stream new production.
We will lower debt to improve leverage and reduce the overall risk profile
of the business. And we will pay dividends to shareholders in line with
our policy, while these capital priorities are unchanged.
As regards the covid-19 pandemic, the well-being of all AngloGold
Ashanti employees is our priority. Covid-19 is the single biggest risk
facing not only our business, but also the world economy. We have
extensive experience in managing the Ebola virus in West Africa and
other communicable diseases, and we intend to put this invaluable
capability to good use during this time. Coupled with our strategy to
strengthen our health discipline, every effort will be made to effectively
manage its impact. This is a challenge to which we are adapting, and
we are working closely with our employees, industry partners and the
governments in all the countries in which we operate to manage the
crisis and ensure business continuity while complying with applicable
regulations and country restrictions during this time.
This pandemic, which is still evolving, has resulted in drastic actions by
governments across the world, potentially leading to a global economic
recession. To extricate the world from this shock requires a co-ordinated
effort by all stakeholders and we are encouraged by the efforts of
the World Health Organization in working with authorities and global
experts to better understand this virus, its impact and, importantly, in
guiding national responses to arrest its spread. In this era of stakeholder
capitalism, it is crucial that in the midst of this crisis the livelihoods of the
most vulnerable in our societies are protected and that health systems
remain intact because, while we are currently pushing back against this
virus, other communicable diseases including malaria and TB are also to
be kept at bay.
Strategic follow-through
In my letter last year, I spoke of our ongoing work to unlock the latent
value that exists within our Company. We remain as committed as
ever to that task, with the knowledge that improving our fundamental
valuation will be the product of several initiatives, including, among
others, consistent delivery on our commitments, optimisation of our
orebodies, disciplined allocation of capital, improved cash conversion,
having a remuneration approach that enhances delivery on long-term
strategy and continuing to strengthen our license to operate. I’m pleased
to note that the management team has each of these areas in focus, and
the board continues to monitor their progress in each.
Conclusion
Regrettably two board members – Nozipho January-Bardill and
Rodney Ruston – will not be standing for re-election at the forthcoming
Annual General Meeting (AGM), in accordance with board policies and
guidelines. I thank both for their significant contribution over almost
a decade in helping steer this company through the commodity
downturn in a prudent and responsible way. Their efforts have helped
ensure that AngloGold Ashanti is well placed to take advantage of the
current upturn.
The board has nominated two new directors for election by shareholders
at the 2020 AGM. We are pleased to welcome the newly appointed
independent non-executive directors – Maria Ramos and Nelisiwe
Magubane – who joined our board of directors with effect from 1 June
2019 and 1 January 2020, respectively. They bring a depth and breadth
of financial, technical and corporate experience 1 that will ensure the
board retains strong oversight of the Company and is effective in working
with the executive leadership in setting the appropriate strategy.
Finally, I’d like, on behalf of the board, to thank the executive leadership
team and every employee across the organisation for their tireless
efforts and dedication, not only in achieving our strategic objectives but
in upholding the values of the Company while doing so. To my fellow
directors, thank you for your counsel, support, and robust engagement
with issues that are all invaluable to making a success of this endeavour.
Sipho M. Pityana
Chairman
27 March 2020
1 See for further detail
PAGE 15
2019 S E C T I O N 2
WORLD IN
WHICH WE
OPERATE
E x p l a i n i n g h o w e x t e r n a l
f a c t o r s i n t h e w o r l d i n
w h i c h w e o p e r a t e a f f e c t
u s , t h e r e s u l t a n t r i s k s a n d
o p p o r t u n i t i e s , w h a t w e d o i n
r e s p o n s e a n d o u r e n g a g e m e n t
w i t h s t a k e h o l d e r s
Our external operating environment
Managing our risks and opportunities
Stakeholder engagement and material issues
18
20
30
PAGE 16
PAGE 17
Geita
2019 OUR E X T ER NAL OPERATING ENVIRONMENT
External factor/variable
Explanation and potential impact on value
Our response
T he business environment in which we operate is dynamic and complex, with influence from several external factors,
which are beyond our control.
This can potentially affect our performance, ability to deliver on our strategy and its objectives, and thus to create value. The following
factors have been identified and are considered as we strive to position AngloGold Ashanti to realise opportunities and to minimise risks.
External factor/variable
Explanation and potential impact on value
Our response
Global socio-economic and
political outlook
Related strategic
focus areas:
Increasing pressure
to reduce emissions,
and further mitigate
environmental impacts
related to climate change
Gold price volatility:
The Company’s business activities are focused on the
production of gold, and thus is heavily exposed to the
gold price. The gold price is influenced by global markets,
geopolitical and macroeconomic factors, in addition to
fundamental supply and demand drivers.
Exchange rate volatility:
The gold price is determined on global markets and based
in US dollars. However, the Company’s operating costs are
sensitive to local currency movements in Brazil, Argentina,
Australia and South Africa.
Global socio-economic factors:
The outbreak of the coronavirus (covid-19) and the US-China
trade war have increased global economic uncertainty, causing
global stock markets to fall sharply and boosting the gold price.
The covid-19 virus has had a major economic impact with
cities placed on lock down and border restrictions imposed by
some countries across the world. This is having an impact on
the global economy and may potentially impact supply-chain
logistics.
There could also be ramifications for our operations should
employees contract the virus or due to mine operations having
to be suspended.
There is mounting pressure on mining companies to reduce
their emissions of greenhouse gases, and to promote
responsible practices in line with the Paris Accord, Conference
of the Parties (COP) on Climate Change, the SDGs and the
TCFD (Task Force on Climate-related Financial Disclosures)
and related emission reduction targets.
Related strategic
focus areas:
Water is a valuable natural resource whose availability is impacted
by climate change – either during periods of extreme heat and
drought (Australia) or periods of extreme rain (Brazil, Ghana).
Related material issue:
• Focus on Operational Excellence initiatives
with the aim to counter cost inflation and
achieve cost savings
• Expand margins, focusing on quality
ounces over volumes
• Portfolio optimisation focused on reducing
costs and maximising margins
• Actively work to mitigate any major
disruptions due to covid-19
For more on the preparedness work being carried
out internally, see information below this table
• Careful monitoring of freight and shipping
pricing and delays
• Focus on continuously improving our ESG
performance
• Identify and align corporate targets with
SDGs and other guidelines, where relevant
• Aim to align reporting on environmental
management and climate-related impact
with the guidelines and recommendations of
the TCFD
• Continue to comply with and meet investor
requirements on our environmental impact as
part of the industry frameworks, standards
and guidelines, which include the ICMM, the
UN-supported Principles for Responsible
Investment (PRI), the United Nations Global
Compact (UNGC) and the World Gold
Council’s Responsible Gold Mining Principles,
among others
Uncertain and increasingly
rigorous regulatory
environment
Related strategic
focus areas:
Regulatory certainty is important in making long-term
investments in assets that span several decades. Potential
regulatory changes relate to mining rights, the payment
of taxes and royalties, and operating or closure and
decommissioning requirements can have an impact on a
project’s investment returns.
Related material issue:
Increasing and more onerous regulations can result
in increases in the cost of compliance, which may
be compounded by any uncertainty in application or
understanding. This can affect the financial position of the
business and its sustainability as well as affect relationships
with government and regulators.
Increasingly demanding
stakeholder expectations
Currently, companies, particularly mining companies, are facing
greater scrutiny worldwide from various stakeholders:
Related strategic
focus area:
Related material issue:
• The investment community and ratings agencies have
expectations relating to financial and operating performance
– and increasingly in terms of ESG factors – and to deliver
on strategic objectives and commitments
• Governments’ expectations relate to our contributions to
national/local economies and the fiscus, and to partnering in
service delivery
• Communities have expectations of economic benefits
– employment and procurement opportunities, and the
provision of infrastructure, health care and education
• Engage constructively with governments,
local stakeholder groups and regulators to
optimise shared value
• Carefully monitor regulatory changes and
compliance
• Reduction or impact on carbon footprint
following the sale of the South Africa assets
• Constructively engage with stakeholders with
aim to: share value; better understand and
manage expectations; and to secure and
maintain our social license to operate
• Ensure responsible corporate citizenship, in
line with our values
• Maintain and improve ESG performance and
report this transparently
South Africa’s
sovereign rating
The country’s sovereign rating could impact AngloGold
Ashanti’s credit rating and the cost of and access to capital
• Engage with ratings agencies to provide a
realistic understanding of the Company’s
potential operating and financial performance
Related strategic
focus area:
Covid-19 preparedness
AngloGold Ashanti has established a covid-19 Crisis Committee, through which we maintain close liaisons with the national authorities
in our respective countries of operation to ensure active monitoring and other measures to contain the coronavirus outbreak. To date,
among our employees, we have one case of coronavirus, contracted on personal travels. We are actively educating and promoting
awareness of the virus, within and around our sites and in surrounding communities. In Argentina, we have had to suspend mining
activities from 20 March 2020 following implementation of country-wide restrictions on travel and border closings. On 24 March 2020,
an announcement was made to temporarily suspend production from South Africa operations for three weeks, from 26 March 2020.
This follows a decision by the President of the country for a nationwide lockdown in an effort to slow the spread of covid-19.
On 26 March 2020, the State of Goiás, in Brazil, extended a set of restrictions on the operation of non-essential business to include
mining. These restrictions are set to run through to 6 April 2020, and while AngloGold Ashanti may apply for exemption from this order,
the Minera Serra Grande operation will temporarily suspend operations.
Since the status of the covid-19 crisis is evolving rapidly, we are continually assessing its development. There have been no material
disruptions related to shipments of gold. We are cognisant of the fact that if border closures occur, this may cause temporary logistical
constraints and we are working closely with the security companies who handle our gold shipments to ensure contingency plans are in
place should this arise.
There have been minimal price or supply-related issues associated with the virus, however, there is a potential supply risk associated
with base metals and steel sourced from China. The near-term risk is low-to-medium. The six- to 12-month outlook is medium-to-high
risk, based on uncertainty around how long the outbreak will continue. We are starting to see lead times extend on low-value personal
protective equipment items sourced from China, but there is minimal risk to our operations regarding supplies as alternative international
sources can be identified. See in the section.
PAGE 18
PAGE 19
2019
MA NA G ING OU R R IS KS AND OPPORTUNITI ES
A ngloGold Ashanti operates in a dynamic world that
is ever-changing. This requires that management
and our decision-making processes are agile and
responsive, enabling us to mitigate risks and act on
opportunities identified.
Our risk management process aims to balance mitigating and
minimising our risks with maximising the potential rewards from
opportunities. A risk is defined as any variable and/or event
that may affect AngloGold Ashanti’s ability to create sustained
value. Our risk policy sets out the requirements for group risk
management with the purpose of ensuring that risks are managed
effectively. A structured framework of internal risk management
process is in place to proactively identify risks, while simultaneously
considering the views and interests of our stakeholders.
The Audit and Risk Committee oversees risk management on
behalf of the board and receives regular risk-related feedback from
management. The committee regularly reviews and assesses all
such information and governance structures, ensuring that roles
and accountability for identifying, managing, mitigating, reporting
and escalating risks and opportunities are clearly defined. The
board has ultimate responsibility for managing and reducing risks
and for realising value from opportunities.
Risk appetite and tolerance
AngloGold Ashanti defines risk appetite as the amount and type of
risk that the group is willing to accept in achieving its business goals;
risk tolerance refers to the level and amount of risk that the group
carries at a particular time. Both the risk appetite and risk tolerance
are critical elements of an enterprise risk management process, as it
integrates risk management with business planning and operational
management. In pursuit of our key strategic objective of sustainable
cash flow improvements and returns, recognising that risk is present
in all business and operational activities, and mindful of the external
risk environment, we operate with heightened focus for each of the
following strategic building blocks:
• Improve portfolio quality
• Maintain long-term optionality
• Focus on people, safety and sustainability
• Ensure financial flexibility
• Optimise overhead, costs and capital expenditure
Identifying and monitoring risks and
opportunities
Our risk management process supports delivery of our
strategic objectives and provides a platform for identifying
risks and opportunities.
Our risks and opportunities are identified, assessed,
quantified and monitored with input from senior
management to ensure accountability. They are
reviewed quarterly, or more often as required, based
on developments and changes in our operating
environment. Relevant business units for the respective
identified risks are consulted to confirm the status
of risks and opportunities in terms of their severity
and likelihood, and to ensure alignment with regular
independent assessments.
Monitoring and reporting
Risks and
opportunities are
identified with input
from business units,
with the executive
committee having
accountability.
• Board through respective
committees (quarterly)
and as part of the board
strategy sessions
• Audit and Risk Committee
(quarterly)
Our top 10 residual group risks
Our top residual group risks are presented in the ‘heat map’ that plots the likelihood and impact of the top risks. Risks have previously been
categorized as either strategic, operational or external
Top group risks heat map
Nature of risk
Strategic
Operational
External
Almost
certain
Likely
d
o
o
h
i
l
e
k
i
L
Possible
Unlikely
Very rare
1
2
5
3
6
4
7
8
9
10
Minor
Moderate
High
Major
Extreme
Impact/consequences
These are our top 10 risks as at the end of January 2020, ranked from highest to lowest ranked. The previous year’s ranking is in parentheses.
• Executive Committee
(monthly review)
Risk ranking
(Previous year's ranking)
Top group risk
The board annually determines the levels of group risk tolerance
setting limits for risk appetite.
• Operations: mine sites, etc
(regularly/as required)
AGILE AND RESPONSIVE MANAGEMENT
e n a b l e s u s t o m i t i g a t e r i s k s a n d
r e a l i s e o p p o r t u n i t i e s
1 (1)
2 (6)
3 (2)
4 (5)
5 (3)
6 (4)
7 (7)
8 (8)
9 (–)
10 (10)
(–) indicates new group risk
Regulatory changes to mining rights and adverse fiscal changes
Inability to convert Mineral Resource to Ore Reserve
Failure to meet our operational and safety targets
Failure to move down the industry cost curve
Failure to successfully deliver and ramp up of growth projects
Adverse gold and commodity prices, and currency movements
Failure to attract and retain critical skills and talent
Implications of future tailings regulations for our governance of event risks
Loss of/threats to social licence to operate
Delayed or unsuccessful asset sale process
PAGE 20
PAGE 21
2019 MA NA G ING OU R R IS KS AND OPPORTUNITI ES CON TI NU ED
Emerging risks
Our risk management standards promote communication of up-to-date information on group and industry risks, trends and
emerging risks. There were shifts in several emerging risk in the business during 2019 with the main emerging risk being
increased investor focus on transparency and responsible mining. The events early in 2020 relating to the covid-19 resulted in a
re-assessment of our emerging risks and their impact on our operations.
The covid-19 pandemic has resulted in great uncertainty in the global financial markets and in overall economic activity,
which may have an adverse effect on worldwide demand for gold. Furthermore, the covid-19 pandemic could cause supply
chain delays and disruptions, or lead governments in the countries in which we operate to impose temporary restrictions on
travel or business activities, including nationwide lockdowns (quarantine), which may disrupt our activities and operations
temporarily and even lead to a full or partial temporary suspension of our mining operations in such affected countries. In
addition, any spread of the covid-19 virus among our workforce may lead to a full or partial temporary suspension of the
Company’s mines in the affected areas.
The Company has raised awareness and established a multi-disciplinary covid-19 task force to direct our global response to the
crisis, with input from its health, operational, travel, human resources, community relations, finance and supply teams, among
others. All disciplines and operations have emergency preparedness plans in place, developed in line with national protocols and
plans. Our first aim is to protect employees, their families and our host communities.
Given the uncertainty around the extent and timing of the potential spread of the virus in future, although AngloGold Ashanti
cannot reasonably estimate its impact on the profitability of our operations or our financial condition, management is actively
managing this risk and has put in place crisis management measures to mitigate as far as possible any disruptions to the
business. Any prolonged dislocation in financial markets due to the spread of the covid-19 pandemic could impact the
Company’s ability to refinance its debt on commercially reasonable terms, if at all, and could as a result have a material
adverse effect on the Company’s funding requirements and overall liquidity.
AngloGold Ashanti is implementing cash conservation measures, including focused capital prioritisation and reducing non-
essential spending across the business and is well positioned to weather the current market uncertainty. The Company
has drawn down $1.4bn on its US dollar RCF to cater for the $700m bond redemption due mid-April 2020 and to provide
additional liquidity headroom. After the drawdowns, cash on hand is about $1.8bn (excluding cash lock-up positions at Kibali
and Sadiola, where AngloGold Ashanti’s combined share totals about $300m). Management will continue to take a prudent
and proactive approach to managing the Company’s liquidity, which may include procuring additional credit facilities or debt
over and above its current facilities.
Opportunities
• Exploration potential (as proven by growing the Ore Reserve)
• Project development (to fully realise Obuasi, with Quebradona and Gramalote in feasibility study phase – their respective feasibility studies
are expected to be completed by end of 2020)
• Ongoing operational efficiency and cost
Top ten group risks – potential consequences, mitigating actions, key focus areas
and related opportunities
1. Regulatory changes to mining rights and adverse fiscal changes
Strategic focus areas and responsibilities
Potential consequences
Mitigating actions
Related strategic focus area/s affected
• Regulatory uncertainty
by this risk:
• Increased tax and royalties
• Adverse impact on our business plans
• Regular, inclusive engagement
and broader collaboration with
government, communities and
NGOs
Responsible board committee:
• Social, Ethics and Sustainability
Committee
• Audit and Risk Committee
• Adverse impact on our market capitalisation
• Continuous monitoring of
• Increased operational costs
• Reduced cash flow
• Reputational damage – scrutiny by governments,
international non-governmental organisations (NGOs)
and communities
• Political instability
• Compromised employee safety and security
legislative/political landscape
• Use of joint venture alliances in
line with host country’s regulatory
requirements
Key areas of focus and related opportunities
Tanzania:
Geita
• In July 2017, the Government of Tanzania passed a new legal framework for the country’s extractive industries
• Our operation continues to operate normally in compliance with the legislation read in conjunction with the Mining Development
Agreement, as constructive dialogue continues with government and other authorities at various levels
• As a precautionary measure to safeguard our assets in Tanzania, AngloGold Ashanti applied in July 2017 to arbitration proceedings
under the rules of the UN Commission on International Trade Law. Following the expiry on 13 January 2020 of the stay of the arbitration
proceedings against the Government of Tanzania, AngloGold Ashanti received a further extension of the stay until 13 May 2020
DRC:
Kibali
• Joint venture partner Barrick continues to engage with the DRC government on concerns related to the new mining code introduced in 2018
• As of June 2018, AngloGold Ashanti and many other holders of mining rights reserved their rights under the 2002 Mining Code
• A VAT refund agreement was signed with the DRC Tax Administration in 2018 permitting the joint venture to offset the amount of VAT
credits eligible for repayment against other payments to government
• Discussions are continuing with the authorities to progress the Article 220 Decree, with the aim of limiting the fiscal impact of the new
mining code and improving the cash repatriation process
Argentina:
Cerro Vanguardia
• The export duties re-imposed by the government in Argentina in 2018 and increased in late 2019 could negatively impact free cash
flow, especially in a weakening exchange rate environment. Reimbursement is being pursued under the tax stability guarantee following
the related framework having been made public
Brazil:
• TSF licensing and permitting process requirements in terms of new and proposed legal requirements may have an operational and
financial impact on our operations in Brazil. This may impact operating and project costs
Iduapriem
PAGE 22
PAGE 23
2019 MA NA G ING OU R R IS KS AND OPPORTUNITI ES CON TI NU ED
Top ten group risks continued
2. Inability to convert Mineral Resource to Ore Reserve
Top ten group risks continued
4. Failure to move down the industry cost curve
Strategic focus areas and responsibilities
Potential consequences
Mitigating actions
Strategic focus areas and responsibilities
Potential consequences
Mitigating actions
Related strategic focus area/s
• Ore Reserve write-down
affected by this risk:
Responsible board committee:
• Investment Committee
• Impairments and lower future earnings per share,
decline in market capitalisation
• Reduced production profile
• Premature mine closure or mothballing of operations
• Focus on improving underground
development to create flexibility for
mines to cope with unexpected
events through targeted
investments
• Focused greenfield exploration
targeting new discoveries to
maintain a healthy portfolio over
the long term
• Robust business planning,
portfolio optimisation and
considered feasibility studies to
withstand potential risks
• Focus on brownfields exploration
Key areas of focus and opportunities
• Invest in growing our Ore Reserve and improving operating flexibility by investing in the Ore Reserve development and conversion at
sites with high geological potential over the next two to three years
• Project development (Obuasi, Quebradona, Gramalote) has already increased the Ore Reserve
• Continue to bring more projects to account to further increase the Ore Reserve
• Greenfields exploration in new areas and other key projects
3. Failure to meet our operational and safety targets
Strategic focus areas and responsibilities
Potential consequences
Mitigating actions
Related strategic focus area/s
• Reduced cash flow and decreased liquidity
affected by this risk:
• Reduced earnings, uncertain delivery on targets and
disproportionate penalty on share price
Responsible board committee:
• Decline in investor confidence
• Negative risk to credit ratings
• Audit and Risk Committee
• Restricted ability to invest in strategic growth and
• Social, Ethics and Sustainability
Committee
Key areas of focus and opportunities
development projects
• Delivery of business plans by
focusing on Mineral Resource
modelling, integrated business
planning and execution, as well as
by addressing development delays
• Drive operational excellence
programmes to improve
productivity and efficiency
• Focus on safe production across
all operations
Brazil:
Cuiabá
• The operation has been experiencing poor ground conditions. To ensure safe production, a decision was taken to slow the rate of
mining while a new surface support regime and mining sequencing were explored. Leading internal and external rock engineering
experts were engaged to provide advice
• Mesh surface support to rehabilitate access ways as well as new controls and mine sequencing were introduced
• Early indicators showing these new measurements to be successful and condition monitoring will be ongoing as mining progresses in
the deeper, higher grade areas
Guinea:
Siguiri
• Operational and technical challenges related to the commissioning of the combination plant were experienced, impacting performance.
Plans to mitigate these challenges are being implemented and improving recoveries remains a critical focus
Related strategic focus area/s affected
• Reduced profit margins, or failure to achieve cost
• Drive operational excellence
by this risk:
competitiveness and potential savings
• Failure to achieve business plans and deliver
strategy given limited financial resources
• Threat to credit and investment ratings
Responsible board committee:
• Audit and Risk Committee
• Investment Committee
programmes to improve productivity
and efficiency
• Exploration and studies focused on
introducing new, lower cost ounces
• Increased focus on capital optimisation
and capital efficiency and allocation
that will generate maximum returns
• Exiting assets in South Africa, Mali and
Argentina with a view to focusing limited
capital and resources on other parts of
the portfolio that generate or have the
potential to generate higher returns
Key areas of focus and opportunities
• Redevelopment of Obuasi and other lower cost projects to contribute to targeted reductions in AISC
• Accelerate development and/or ramp-up of Colombian assets
• Operational excellence initiatives across all operations
5. Failure to successfully deliver and ramp up growth projects
Strategic focus areas and responsibilities
Potential consequences
Mitigating actions
Related strategic focus area/s affected
• Project delays can adversely impact project
• Ensuring appropriate project skills,
by this risk:
returns and earnings
• Failure to achieve business plans and deliver on
strategy
• Decline in investor confidence and company
valuation
Responsible board committee:
• Investment Committee
Key areas of focus and opportunities
systems, structures and governance
are in place
• Selected project steering committee
participation by the group planning and
technical function
Ghana:
Obuasi
• The redevelopment project achieved its first gold pour in December
2019 and is currently ramping up to steady state production
• Phase 2 of the project is firmly on schedule and within budget with
commissioning scheduled for the end of 2020
Colombia:
Quebradona Project
• The feasibility study is due to be submitted for board approval
at the end of 2020. Results of regional and local elections
held in late October 2019 were positive and local support is
growing for this project
• Management continues to work closely with government and
community stakeholders to ensure the mine is developed
sustainably and creates value for all stakeholders
Guinea:
Siguiri
• Operational and technical challenges related to the commissioning
of the combination plant was experienced, impacting performance.
Plans to mitigate these challenges are being implemented and
improving recoveries remains a critical focus
Gramalote Project
• JV partner B2Gold assumed management of the project
effective 1 January 2020 with a target to complete the
feasibility study by the end of 2020
• B2Gold will fund the investment and exploration programme
this year to earn-in back to a 50:50 partnership
Australia:
Tropicana
• The Boston Shaker Underground Project continues to
progress well and is on track to deliver first gold in the second
half of 2020
PAGE 24
PAGE 25
2019 MA NA G ING OU R R IS KS AND OPPORTUNITI ES CON TI NU ED
Top ten group risks continued
6. Adverse gold and commodity prices, and currency movements
Top ten group risks continued
8. Implications of future tailings regulations for our governance of event risks
Strategic focus areas and responsibilities Potential consequences
Mitigating actions
Strategic focus areas and responsibilities
Potential consequences
Mitigating actions
Related strategic focus area/s
• Inadequate free cash flow/liquidity
affected by this risk:
• Inability to deliver growth and execute strategy
• Lower market capitalisation
• Recapitalisation at distressed equity prices and
Responsible board committee:
in poor market conditions
• Audit and Risk Committee
• Credit ratings impact
• Investment Committee
• If sustained, significant gold price volatility
may adversely affect our ability to evaluate the
feasibility of undertaking new capital projects,
the continuity of existing operations and their
ability to meet operational targets, or to make
other long-term strategic decisions
• Enhance cost competitiveness by
improving quality of the portfolio
• Focus on cost, efficiencies and capital
discipline to deliver competitive all-in
sustaining costs
• Maintain long-term optionality by
ensuring our pipeline of opportunities is
continuously replenished
• Improve debt profile and reduce annual
interest bill
• Execute operational excellence initiatives
to counter inflation and improve margins
Key areas of focus and opportunities
• Operational excellence initiatives to take advantage of the price premia differential
• Portfolio enhancement, particularly on quality and high margin assets
• Reducing funding costs
7. Failure to attract and retain critical skills and talent
Strategic focus areas and responsibilities Potential consequences
Mitigating actions
Related strategic focus area/s
• Failure to execute and deliver on strategic
• Implement key human resource
Related strategic focus area/s
• Adverse socio-economic stakeholder impact and
affected by this risk:
reputational damage
Responsible board committee:
• Social, Ethics and Sustainability
Committee
• More intense regulatory scrutiny and control of
TSFs, including relevant licences
• Higher costs associated with inspecting,
maintaining and constructing TSFs
• Significantly increased pressure from local
communities and elevated risk in securing our social
licence to operate
• Certain types of TSFs may be prohibited, resulting
in operational restrictions until alternative facilities
can be constructed
• A tailings management framework,
standards and guidelines in place
to deal with TSF risks with regular
reviews undertaken from an
operational, regional, corporate and
external perspectives
Key areas of focus and opportunities
Brazil:
• The regulatory environment is complicated, and there remains an ongoing risk of operational stoppages and/or regulatory delays
• Continuous monitoring of the legislative landscape and engaging with local authorities
• All seven of our TSFs in Brazil received external stability declarations ahead of the legislated deadline of 30 September 2019. Final
reports are to be submitted by March 2020 but maybe impacted by the evolving covid-19 situation
• Reinforcement of dam walls of Serra Grande's upstream TSF in advance of its expected deactivation on 15 September 2021
affected by this risk:
objectives
Responsible board committee:
• Social, Ethics and Sustainability
Committee
• Remuneration and Human
Resources Committee
• Potential impact on productivity and safety
levels
• Increased labour costs
• Depending on the skills or talent lost – potential
impact on market confidence
• Higher cost of retention
• Failure to meet localisation targets
initiatives such as fair and responsible
remuneration; career growth and
development opportunities; succession
planning; retention schemes; managerial
effectiveness; and entrenching
company values (taking operational
and jurisdictional nuances into account)
to ensure a productive and engaged
workforce
• Identify potential future critical skills and
leadership talent risks, due to increased
competition for critical skills from
operating peers, planned divestments,
limited supply of local skills in some
jurisdictions and proactively implement
mitigation measures.
• Implement integrated talent management
and succession planning process across
the business, with an increased coverage
ratio for critical skills
• Increase training capacity for scarce
artisan’s skills where required
Key areas of focus and opportunities
• Continue Chairman’s Young Leaders programme targeting the development of the Company’s internal talent pool to create a talent
pipeline for future leadership positions
Geita
PAGE 26
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2019 MA NA G ING OU R R IS KS AND OPPORTUNITI ES CON TI NU ED
Top ten group risks continued
9. Loss of/threats to our social licence to operate
Top ten group risks continued
10. Delayed or unsuccessful asset sale process
Strategic focus areas and responsibilities
Potential consequences
Mitigating actions
Strategic focus areas and responsibilities
Potential consequences
Mitigating actions
Related strategic focus area/s
• Reputational damage – scrutiny from governments,
affected by this risk:
international NGOs and communities
Responsible board committee:
• Social, Ethics and Sustainability
Committee
• Impact on investor confidence, market capitalisation
and potentially credit ratings
• Adverse regulatory response
• Compromised employee safety and security
• Targeted stakeholder mapping and
engagement with a greater focus
on government structures, local
community and NGOs
• Continuously monitor the legislative/
political landscape in anticipation of
any negative impact on business
• Strive to meet local content
requirements throughout the portfolio
• Focus on sharing of economic
benefits with other stakeholders
in the country – communities,
governments, local suppliers
Key areas of focus and opportunities
Guinea:
Siguiri
• Continuous stakeholder engagements with the communities and the authorities resulted in a Memorandum of Understanding (MOU)
being signed at the end of November 2019 with key deliverable actions
• Areas of disagreement have since stabilised but are being closely monitored while the agreements, as part of the MOU, are being
actioned and implemented
Ghana:
Obuasi
• Experienced community demands with regards to local content implementation and local employment. Communication with key
stakeholders is ongoing and good progress has been made in implementing the Obuasi Social Management Plan to mitigate this risk
Tanzania:
Geita
• There was an escalation in complaints and claims for compensation relating to cracked houses in some of the villages
Related strategic focus area/s
affected by this risk:
• Sales processes not realising full value, sale process
may be convoluted or may not eventuate in a sale
• Continue operating high-cost operations due to
unsuccessful sales process
Responsible board committee:
• Investment Committee
Key areas of focus and opportunities
• Management focused on organic
opportunities to create value over
acquisition options
• Preparations in place to operate assets
in the event that they are not sold
• Ranking investment opportunities
based on returns and affordability to
maintain discipline in balancing capital
needs of the business
Argentina:
Cerro Vanguardia
• The sale process continues and is at an advanced stage. We hope to make a decision on whether to accept a firm offer or to terminate the
sale process in the second quarter of 2020. Once the decision has been made, we will make an announcement. The asset remained a key
contributor in 2019
Mali:
Sadiola
• On 23 December 2019, the Company announced that it had reached an agreement to sell its interest in the Sadiola Mine to Allied Gold
for an attributable cash consideration of $52.5m
• This sale transaction is subject to the fulfillment, or waiver, of a number of conditions precedent, including the receipt of certain
approvals and releases from the Government of Mali
• AngloGold Ashanti received approval from the South African Reserve Bank in early 2020. It is anticipated that all other conditions
precedent will be fulfilled or waived by the end of April 2020. All efforts are being explored to secure the remaining conditions precedent
South Africa:
• On 12 February 2020, AngloGold Ashanti announced an agreement to sell its remaining South African producing assets (Mponeng
underground mine, Mine Waste Solutions (the mine waste retreatment operation) and a surface rock dump processing business) and
related liabilities to Harmony Gold Mining Company Limited
• A committee consisting of mine management, local government and community leadership resolved the majority of the issues raised,
• Consideration for the transaction is in cash and deferred payments with expected proceeds of around $300m, subject to subsequent
with some of the remaining queries still being addressed
performance, and with additional proceeds if the West Wits assets are developed below current infrastructure
• The transaction is subject to the fulfillment of a number of conditions precedent, including obtaining of all the necessary consents from
the relevant authorities and other stakeholders with the earliest closing anticipated on or about 30 June 2020. All efforts are being
explored to secure all the necessary approvals as soon as possible
Iduapriem
PAGE 28
Cerro Vanguardia
PAGE 29
2019 STA K EH OLDE R ENGAGEMENT AND MATERIA L I SS UES
Our approach
E n g a g e m e n t w i t h o u r s t a k e h o l d e r s u n d e r p i n s
v a l u e c r e a t i o n a n d i s v i t a l t o t h e s u c c e s s f u l
c o n d u c t o f o u r b u s i n e s s . I t a i d s u n d e r s t a n d i n g
o f o u r o p e r a t i n g e n v i r o n m e n t a n d d e c i s i o n -
m a k i n g , a n d a s s i s t s i n i d e n t i f y i n g r i s k s a n d
m a t e r i a l i s s u e s .
Stakeholder engagement is critical at every stage of our business
activities, from exploration through to mine closure. It aims to
nurture constructive relationships to secure our licence to operate.
It is an inclusive two-way process that is aligned with our core
values and guided by our Code of Ethics. As we engage with
stakeholders we adhere to the Voluntary Principles on Security
and Human Rights, advocating transparency and working against
bribery and corruption.
Engagement is dynamic and aids understanding and management
of stakeholders’ needs and expectations; we in turn share
information on AngloGold Ashanti, our objectives, policies
and standards, and our financial, operating and sustainability
performance. Feedback helps us to identify and manage our
material issues, business risks and opportunities, and to develop
appropriate actions and responses.
Identifying our key stakeholders
We identify our key stakeholders based on the influence on our
business decision making processes. Based on this assessment,
we categorise these relationships as either collaborate, involve or
consult. While we engage with all stakeholders, we have identified
our principal stakeholder groups below.
Employees and unions
Communities and
suppliers
Industry
partners
WHO ARE OUR
STAKEHOLDERS
Investment
community
Governments and
regulators
Media
Oversight and accountability
A group-wide Management Standard on Engagement 1 is
in place to guide stakeholder engagement. This standard
and the material issues are in turn informed by King IV, the
GRI Standards, the AccountAbility AA1000 Stakeholder
Engagement Standard, and the International Council on
Mining and Metals’ (ICMM’s) 10 Principles. Stakeholder
relationships is one of the guiding principles of the
International Integrated Reporting Framework.
The board is ultimately accountable for stakeholder
engagement, providing oversight of material stakeholder
issues and their management through the Social, Ethics
and Sustainability Committee.
Each stakeholder grouping is allocated an executive/
champion who is responsible for:
• managing the relationship and engagement
• identifying and managing material issues, risks and
opportunities
• developing and monitoring appropriate responses
and actions
1 Our group-wide management standard on stakeholder
engagement
Our principal stakeholder groups are:
• Investment community – this grouping is geographically diverse
and includes shareholders, providers of capital, analysts and
prospective investors
• Employees and unions – all employees, including contractors,
and those unions which represent employees in our various
operating jurisdictions
• Governments and regulators – various levels of government
including local, municipal, regional, provincial and national
• Communities and suppliers – the host communities in and
around our operations on which we have an impact. Suppliers
of goods and services required by our operations with local
suppliers being given preference
• Industry partners – includes entities such as the World Gold
Council (WGC), ICMM, the Extractive Industries Transparency
Initiative (EITI), the World Economic Forum, the Africa Mining
Indaba, the Occupational Lung Disease (OLD) working group, as
well as local/regional industry chambers in the countries in which
we operate
• Media – includes local and international media houses as well as
print media and newswires
We have highlighted relevant stakeholder relationships – and
their potential impact on our ability to maintain our social licence
to operate.
1. Engaging with the investment community
Related material issues:
Employee
safety
Employee
and community
health
Contributing
to resilient
self-sustaining
communities
Responsible
environmental
stewardship
Employee,
community
and asset
security
Artisanal and
small-scale
mining
Respecting
human rights
Nature of relationship:
Strong
Why engage
Navigating
regulatory and
political uncertainty
and risk
Talent
management,
skills
development
and employee
relations
Open and transparent engagement on our performance, management of expectations and delivery on our strategy can enhance
investor sentiment and the Company’s reputation, thus improving access to capital and our valuation.
How we engage and frequency
Engagement is regular – in person, by email, by telephone or video conference – and includes corporate action announcements, our
interim and annual results presentations, our annual reports, site visits, investor conferences and one-on-one meetings. We undertake
regular periodic reporting or as and when there are new developments and we do submissions in various sustainability indexes. We
engage in compliance with JSE Listings Requirements and with the regulations of the various other stock exchanges on which we are
listed, including the NYSE.
Topics of engagement 2019
• Business restructuring, proposed sale of assets and other corporate transactions
• Progress and execution of Obuasi redevelopment
• Brazilian TSFs and their management
• Management of and performance on critical safety, operational, financial and environmental, social and governance (ESG) metrics
and eliminate change in particular
• Jurisdictional risk and cash conversion challenges from Tanzania and the DRC
• Other material matters that may impact performance, such as regulatory and political risk, labour unrest, and community matters
• Shareholder voting on AGM resolutions relating to our remuneration policy and implementation report
• The CEO’s sign-on award
Strategic response
• Regulatory and other reporting on our operational, financial and ESG performance
• Demonstrating:
• our focus on and performance in maintaining financial discipline and delivering on our strategy by reducing debt, tight control of
costs, increasing shareholder dividends, reinvesting in our portfolio, and keeping our Ore Reserve pricing unchanged
• steps taken to improve the quality of our asset base and unlock value for shareholders by adhering to our strict investment criteria
• the efficient and optimised use of limited capital for investment, including explanation of rationale for planned asset sales and
investments in the redevelopment of Obuasi and other projects, such as in Colombia
• The Chairperson of the Remuneration and Human Resources Committee met with various investors and committed to providing
a detailed explanation on the CEO's sign-on remuneration. For more details, see the
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2019 STA K EH OLDE R ENGAGEMENT AND MATERIA L I SS UES
CO N TINUED
2. Engaging with employees and unions
Related material issues:
Employee
safety
Employee
and community
health
Nature of relationship:
Employee,
community
and asset
security
Talent
management,
skills
development
and employee
relations
Respecting
human rights
Cordial
Why engage
Employees are fundamental to delivery on our mission and strategy. Respectful engagement aims to promote positive, stable
employee relations, increase productivity, motivate the workforce and ensure alignment of work to our strategy. Good employee
relations encourage a collaborative approach. Employee engagement reinforces the importance of safety in the workplace, good
safety practices, and covers employee wellness and security as well.
How we engage and frequency
• Employees – engagements are frequent and ongoing, and take the form of, among others: internal newsletters and briefs,
management meetings, staff briefings, mass meetings, electronic newsletters, safety and health awareness campaigns, employee
surveys, performance and exit reviews
• Unions – engagement is more formal and structured, and occurs at meetings and more frequently during wage negotiations
Topics of engagement 2019
• Asset sale processes
• Impact of restructuring on jobs
• Job security and incentives (fair wages, salaries and benefits), career and personal growth/development, terms of employment
• Safety and safe workplaces, health and wellness, gender equality and security
• Productivity and maintaining focus on strategy and meeting guidance
• Encouraging collaboration to solve problems
• Settlement of the silicosis case
Strategic response
• A group-wide employee survey was conducted, initial results of which indicated areas of employee concerns. Action plans to address
these have been developed, with some having been implemented already. See for more details
• Engagement, either directly or through unions, with employees at head office and the operations where asset sales processes are
underway – in South Africa, Mali and Argentina
• Formalised safety and health strategies support related awareness initiatives and wellness programmes
• Reinforced importance of living by our values
• Gender and inclusivity policy reinforced and expanded
• Communication at the various stages of the court process on the silicosis settlement case, ensuring all notices are widely and
clearly communicated
• Safety campaign (Khumbul’ekhaya) to entrench the culture of safe practices even during holidays
3. Engaging with governments and regulators
Related material issues:
Employee
safety
Employee
and community
health
Contributing
to resilient
self-sustaining
communities
Responsible
environmental
stewardship
Employee,
community
and asset
security
Artisanal and
small scale
mining (legal
and illegal)
Respecting
human rights
Nature of relationship:
Cordial
Why engage
Navigating
regulatory and
political uncertainty
and risk
Talent
management,
skills
development
and employee
relations
Our aim is to mitigate regulatory and political risk and uncertainty, to encourage certainty and ensure our licence to operate as well as to
promote an environment conducive to investment and development, enabling us to grow and create value in the long term. Proactive
engagement aims at collaborating with governments on their service delivery responsibilities. We focus on maintaining good working
relations with governments, apprising them of any new developments at our operations and projects, and key concerns within each
operating jurisdiction.
How we engage and frequency
Engagements happen quite regularly, on an ad hoc basis and matters arising or depending on either company developments,
industry-related changes or during specific forums like the Mining Indaba. Can be direct, in person or indirect, at company level or
through industry partners which lobby on behalf of the mining industry. See industry partners below for indirect engagement with
government and regulators.
Topics of engagement 2019
• Proposed assets sales in South Africa, Mali and Argentina
• Mitigation of political and regulatory risk
• Policy development and regulatory proposals
• Project development in Ghana and in Colombia
• Dispute resolution
Conversely, governments engage to:
• ensure that benefits of mining flow through to the state at national, local and community levels
• ensure monitoring of regulatory compliance
Strategic response
• Improved internal systems and activities to meet the requirements of regulatory changes
• Promoted collaborative dialogue with the government of Tanzania; we have suspended arbitration proceedings
• Maintained dialogue in the DRC on the repatriation of funds held in the country
• Constructive engagement with governments and relevant regulators in countries in which asset sales are underway to ensure the
transactions meet conditions precedent
• Grievance mechanisms in place at all operations for any grievances and complaints
• Compliance with all laws and regulations relating to TSFs
PAGE 32
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2019 STA K EH OLDE R ENGAGEMENT AND MATERIA L I SS UES
CO N TINUED
4. Engaging with communities and suppliers
Related material issues:
5. Engaging industry partners
Related material issues:
Employee
and community
health
Contributing
to resilient
self-sustaining
communities
Nature of relationship:
Suppliers
Communities
Responsible
environmental
stewardship
Employee,
community
and asset
security
Artisanal and
small scale
mining (legal
and illegal)
Respecting
human rights
Employee
safety
Employee
and community
health
Artisanal and
small scale
mining (legal
and illegal)
Navigating
regulatory and
political uncertainty
and risk
Strong
Cordial
Why engage
Engagement aims to manage expectations, uphold human rights and ensure community and asset security. Mutually beneficial
partnerships with host communities enhance shared value creation, which help in retaining our social licence to operate.
Understanding and managing community expectations is vital. For more information on how we contribute to self-sustaining
communities, see .
We endeavour to ensure suppliers are aligned with our business ethics and values.
How we engage and frequency
• Communities: Each operation has a forward-looking community engagement strategy that identifies potential areas of concern
within the local communities. Engagement with communities drives the focus on local economic development programmes,
developed and run in partnership with local governments and host communities, that contribute to economic growth, stimulate
income-generating opportunities, create employment, and aim to nurture sustainable livelihoods beyond the life of mine.
• Suppliers: Our supplier Code of Conduct encourages all suppliers, including contractors, to align with our internal policies,
standards and codes of behaviour.
Topics of engagement 2019
Communities:
• Proposed sale of assets in South Africa, Mali and Argentina, including the incorporation of mine areas and donation of facilities to
local communities in South Africa
• Work/employment opportunities
• Local enterprise development and local economic development programmes
• Possible impact of mining activities on communities
Suppliers:
• Responsible ESG practices
• Promotion of local procurement, transformation and capacity building to empower the local population
• Ensuring alignment with our Code of Ethics, including human rights practices, labour relations and employment practices, the
environment, anti-bribery and corruption, and safety procedures
Nature of relationship:
Strong
Why engage
Engagement to ensure support and collaboration with other stakeholders, such as government, regulators, employees, unions and
communities on matters of mutual concern and to reduce regulatory and political uncertainty, promote long-term partnerships and to
empower communities. This includes joint efforts to find solutions to sector or industry challenges, and on any new developments to
promote the future of the industry.
How we engage and frequency
Various platforms are used to engage, including conferences, meetings and other industry forums. As members of the ICMM, we attend
two annual face-to-face membership meetings. We also participated in ICMM working groups focusing on different industry-related
matters throughout the year. The WGC provides a platform to share with and learn from gold industry peers.
Topics of engagement 2019
• Regulatory changes in South Africa (Mining Charter) and Tanzania
• Community challenges
• Occupational lung disease settlement in South Africa
• TSF management, following the failure of a tailings dam wall in Brazil, early in 2019 (Brumadinho, which is operated
by an unrelated party)
• Climate change disclosures
• Increasing demands for responsible mining practice
Strategic response
• Collaborated with industry bodies to manage and reduce regulatory and political uncertainty
• Participated in the OLD working group in South Africa and the final settlement on the silicosis case
• Participated in deliberations and submitted comment on an initial draft of the International Tailings Standard being developed by
the ICMM members for the safer management of TSFs
• Collaborated in the development of the WGC’s Responsible Gold Mining Principles
Strategic response
• Ensured that the redevelopment of Obuasi, in line with our commitments to the Government in Ghana and the community, optimised
Engaging with media
participation by local companies and the transfer of skills
• In Brazil, we engaged on the safety of our TSFs, and implementation of emergency preparedness plans
• Various engagement forums held in the South Africa region with local authorities and host communities ahead of the sale of assets
• Media engagement facilitates an understanding of AngloGold Ashanti, promotes transparent and accurate reporting and supports
constructive relationships with other stakeholders by augmenting communication with other stakeholders, such as communities,
investors and government, and various interested parties. It aids management of our reputation and credibility, contributes to our
social licence to operate, and can address speculation and misinformation in the public domain.
PAGE 34
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2019 S E C T I O N 3
DELIVERING
ON OUR
STRATEGY
E x p l a i n i n g h o w w e p e r f o r m e d
i n d e l i v e r i n g o n o u r s t r a t e g i c
f o c u s a r e a s – i n t e r m s o f
o u r s u s t a i n a b l e d e v e l o p m e n t ,
f i n a n c i a l a n d o p e r a t i o n a l
p e r f o r m a n c e
CEO’s review and outlook
Focus on people, safety and sustainability
People are our business
Managing our sustainability and ESG impacts
Ensure financial flexibility and optimise overhead
costs and capital expenditure
CFO’s review
Financial review – three-year statistics
Improve portfolio quality and maintain long-term optionality
Regional reviews
Three-year statistics by operation
Mineral Resource and Ore Reserve – summary
Exploration and projects
38
41
42
48
56
57
64
67
68
84
94
102
PAGE 36
PAGE 36
PAGE 37
Sunrise Dam
2019 CEO ’S R EVIE W AND O UTLO OK
D e l i v e r i n g o n o u r
s t r a t e g i c o b j e c t i v e s a n d
c r e a t i n g v a l u e
ZERO
HARM
Fellow shareholders,
Last year, AngloGold Ashanti undertook several meaningful
measures to improve the quality of its portfolio, and the focus of
its management team. I’m proud to say that we’ve successfully
made progress in doing so. We demonstrated our ability to
balance the competing capital needs of the business while
continuing to deliver value to our shareholders. We delivered on a
key development project, reinvested in the portfolio, strengthened
our balance sheet and grew our reserves and dividends, all while
managing our operating asset base through which was our safest
year on record.
Safety
The health and wellbeing of all employees is of utmost importance
and we have been steadily improving safety, recording our
best-ever performance last year. We’ve lowered injury rates
by almost 60% since 2012, and in 2019, for the first time in
our history, we passed a calendar year without a fatality in the
workplace. The group all-injury frequency rate (AIFR), which is
the broadest measure of workplace safety, improved 31% to
a record 3.3 injuries per million hours worked, from a rate of
4.8 injuries per million hours worked in 2018. While these are
important milestones, there will be no complacency with respect
to safety and our goal to achieve zero-harm remains a priority.
Our safe production strategy continues, and is being implemented
successfully at all our operations, with a focus on proactively
addressing risks.
Regrettably, after reaching nearly 700 fatality-free days, a seismic
event at Mponeng in South Africa on 5 March 2020 took the
lives of three of our colleagues. They were Lucas Maapea, 41,
Xolani Ngqwemese, 31, and Mokhetha Radebe, 47. Their loss
is heart-breaking, and a humbling reminder that even when we
do everything right, there’s always the risk of an uncontrollable
event. This was sadly followed by another fatality on 16 March
2020, when Thabo Rakometsi 29 was fatally injured while he was
coupling a mechanical loader to a caboose. At this time, I wish to
PAGE 38
Kelvin Dushnisky
Chief Executive Officer
reiterate our absolute commitment to safety. Even at this difficult
time, we should not lose sight of the great strides we have made
over many years in improving safety – reaching milestones that
would have been thought unimaginable only a short time ago – as
we redouble our efforts to make zero-harm a reality.
Sustainability
We also have a strong commitment to operating a sustainable
business, and that requires maintaining and strengthening our
social licence to operate, while mitigating our contribution to
climate change to the best of our ability. While we continue
to investigate ways to strengthen our partnerships with our
local communities and host governments, we take pride in our
progress in this area. We have been working hard across several
fronts – from safety and community development to reducing our
impact on the environment.
In 2008, AngloGold Ashanti announced that a target had been set
to reduce greenhouse gas (GHG) emissions by 30% by 2022. In
fact, we surpassed this target in 2018, when we achieved a 43%
reduction from our current asset base. This has been achieved
through divestments, efficiency improvements and adopting
cleaner energy sources. The achievement is mostly attributed to
energy efficiency gains in the South Africa region, where coal-fired
electricity meant that on-site energy savings translated directly
into indirect GHG savings. In Australia, we switched Sunrise
Dam’s generators from diesel to liquified natural gas and both
of our operations in Australia have moved from diesel to piped
natural gas.
Our mines operate using a sizeable proportion of renewable
energy: predominantly in Brazil where hydropower is used,
including our own Rio do Peixe hydro facility; a local power
grid largely supplied by hydropower is used in Ghana; and
locally-generated hydroelectricity is used at Kibali in the DRC.
Furthermore, as we plan for the future of our Quebradona project,
we have an opportunity to significantly raise the bar by identifying
innovative ways to incorporate ESG principles into the totality of
our mining practices.
We recognise that our ability to create value is only as good as
our ability to evolve in our practices, from a technical, social and
environmental perspective.
Obuasi
In December, we delivered on the most significant project
milestone for the business by pouring the first gold at Obuasi
in Ghana, which was the culmination of Phase 1 of the
redevelopment project. The start of gold production on time and
on budget was a significant achievement for us, the community
at Obuasi and for Ghana as a whole. It’s also testament to the
focused execution by our team on the ground and, importantly,
it reflects the clear investment framework and supportive
environment created by the Government of Ghana.
An opening ceremony for the mine on 29 January 2020 brought
together 3,500 employees and local community members to
celebrate this momentous occasion. In his keynote address,
President Nana Akuffo-Addo delivered a strong endorsement
of our steadfastness in the reopening of the mine and our
commitment to localisation. He pledged his government’s support
for the mine. I am pleased to say, overall project completion was
at 77% at year end. Phase 2 is confidently on schedule and on
budget, as we target the mine to reach its 4,000 tonnes-per-day
capacity by the end of 2020.
Financial performance
The year ended with a strong balance sheet, protected by
the disciplined approach to capital allocation adopted by
management. The ratio of adjusted net debt to adjusted EBITDA
was 0.91 times, well below our targeted level of 1 times through
the cycle. We have paid and will continue to pay down debt,
improving on our ability to generate free cash through the
commodity cycle. As free cash flow improves, we remain intent
on balancing the application of capital by reinvesting in our core
asset base to sustain our business in the longer term, and by
paying 10% of free cash flow to shareholders before we consider
investing in growth. This is at the discretion of the board and
ensures a level-headed approach to managing our business.
Asset sales
Steady progress has been made in simplifying our portfolio and
improving our focus. In December 2019, we reached agreement
on the sale of our interest in Sadiola for an attributable cash
consideration of $52.5m. Subsequent to year end, in February
2020, we also reached agreement on the sale to Harmony of all
our remaining South African producing assets, with expected
proceeds of around $300m. The sale process for Cerro
Vanguardia is at an advanced stage. All cash proceeds from these
sales will be used primarily to reduce debt.
Ore Reserve
A total of 3.5Moz of Ore Reserve was added at our operating
assets before depletion and other reductions, showing strong
progress on efforts aimed at sustainably improving our mine lives.
Impressively, the group’s Ore Reserve, outside South Africa, grew
by approximately 1.1Moz.
In recent years, our focus has been mainly on repairing the
balance sheet. This meant we have prioritised reducing debt,
using entirely internally generated cash, over investment in
brownfield drilling. With the balance sheet now in excellent
shape and continuing to improve along with our cash flow, over
the next two to three years we can focus more on Ore Reserve
development and Ore Reserve conversion at our operations with
high geological potential. Accordingly, sustaining capital for 2020
is expected to increase and include around $30/oz to facilitate
additional exploration and development. This will improve our
overall ore-body confidence and operating predictability, and
extend mine lives. We believe this disciplined reinvestment in our
assets will enhance shareholder value.
Projects
After a prolonged period of investment in Colombia, we are now
advancing both Quebradona and Gramalote through feasibility
studies and these are expected to be concluded by year-end
2020. To further sharpen the focus on capital and management
resources, we announced an agreement in mid-September
2019 which saw B2Gold assume management of the Gramalote
project on 1 January 2020. In 2020, B2Gold will fund an
investment and exploration programme to the value of $13.9m
to earn-in back a 50:50 partnership. The budget agreed by
the joint venture partners for the feasibility study is $37m. Our
exploration teams continue to add value to the business through
the drill bit. Not only do we expect positive results from our
brownfield projects, I am equally excited to see the results from
our generative programme.
Strategy
In an ever-changing landscape and against a backdrop of global
uncertainty, which escalated at the start of 2020, it is critical that we
remain rational in our decision-making and position the business
to create value at virtually any gold price. We will keep working
to focus AngloGold Ashanti as a solid, predictable business that
enhances value for all stakeholders through the cycle. In saying
that, while 2020 is expected to be another transitional year in our
efforts to create a sustainable business with growing margins
and free cash flow, the rapid spread of covid-19 across the world
requires that we adapt to a fast-changing landscape. The health of
our employees and communities throughout the world will shape
many of our decisions as we navigate through this challenging, and
incredibly fluid global pandemic. We recognise our role as a global
citizen and our responsibility to people and our environment. We
are committed to working in partnership with governments and
remain agile in our approach to helping manage this crisis, while
doing everything necessary to protect our people and our business.
We have been proactive in positioning ourselves to respond to the
impact of the outbreak. We will respond quickly and work in deep
partnership with stakeholders while doing our part in fighting this
global pandemic.
PAGE 39
2019 CEO ’S R EVIE W AND O UTLO OK CON TI NU ED
On 21 March 2020, following the Argentinian government’s
decision to impose a nationwide lockdown (quarantine) until
31 March 2020, including temporary travel restrictions, border
closings and suspension of most industries, Cerro Vanguardia
was required to temporarily suspend mining activities.
On 23 March 2020, the South African government announced
a 21-day nationwide lockdown, effective from midnight on 26
March 2020, resulting in the temporary suspension of mining
activities of the Company’s South African operations particularly
Mponeng, and the partial suspension of mining activities at Mine
Waste Solutions and Surface Operations.
On 26 March 2020, the State of Goiás, in Brazil, extended a set of
restrictions on the operation of non-essential business to include
mining. These restrictions are set to run through to 4 April 2020.
Serra Grande operation will temporarily suspend operations.
The Company had a good start to the year, and – notwithstanding
an anticipated impact of 30,000oz – 40,000oz from operations
that are suspended at this stage (less than 2% of annual
production) – AngloGold Ashanti currently remains on track to
meet its annual guidance. Nonetheless, given the uncertainties
with respect to future developments, including the duration,
severity and scope of the covid-19 pandemic, and the necessary
government responses to limiting its spread, AngloGold Ashanti
has decided to withdraw its market guidance at this time.
It is my belief that AngloGold Ashanti will continue to distinguish
itself as a responsible gold mining company in the way it
conducts its business, and deals with all its stakeholders, as we
persevere through this challenging time.
Acknowledgement
I would like to thank the board of directors for their leadership
and tremendous support in my first full year at AngloGold Ashanti.
My thanks also go to the executive team and all AngloGold
Ashanti employees for the great work done in delivering on the
Company’s strategy, in meeting our objectives for the year and in
ensuring that we deliver value to our many stakeholders.
Kelvin Dushnisky
Chief Executive Officer
27 March 2020
,
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RELEVANT STRATEGIC
OBJECTIVE
Focus on people, safety
and sustainability
People are the
foundation of our
business. Our business
must ope rate according
to our values – acting
with dignity and respect
towards communities
and the environment
and being accountable
for our actions – if it is
to remain sustainable in
the long term.
Sunrise Dam
PAGE 40
PAGE 41
2019
Employee safety
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Gender equality
RELATED MATERIAL ISSUES:
Employee and
community health
Talent
management,
skills development
and employee
relations
RELEVANT SDGs
Decent work and
economic growth
Reduced
inequalities
RELATED RISKS:
Risk 3: Failure to meet our operational and
safety targets
Risk 7: Failure to attract and retain critical skills
and talent
CAPITAL AFFECTED
Human and intellectual
PEOPLE ARE OUR BUSINESS
O ur employees – our human capital – are essential
to deliver y on our business strategy. A productive
and motivated workforce, equipped with the right
skills and knowledge required to achieve our strategic
objectives, is vital to the creation of sustained value
throughout the business cycle.
Several key people management initiatives were undertaken in
2019 to ensure that AngloGold Ashanti remains competitive, agile
and consistent in creating and delivering value.
As one of five key strategic focus areas, our human resources
strategy is integral to our business strategy. Furthermore, our risk
and materiality processes have highlighted people as an important
focus area.
Creating value through our people
Integrated talent and succession management
Given that the retention of critical skills and talent is a key risk,
our human resource-related activities are aimed principally at
addressing and mitigating this risk. Various initiatives are in place
to attract and retain talent, to build leadership, to develop internal
capabilities, to upskill and develop young talent and to encourage
diversity and inclusion.
Our approach to integrated talent and succession management
aims to ensure a pipeline of leadership and critical skills talent
across the organisation.
The effectiveness of these initiatives is measured through the
annual talent and succession planning review conducted in a cross
functional and systematic manner by operational, regional, functional
and executive leadership teams for presentation to the board.
In 2019, the following outputs were achieved:
Six strategic
human resource priorities
Align organisational design
and operating model with
business strategy
Implement health of discipline
frameworks to support delivery
of Operational Excellence
Develop capable, values-
based leadership
Employee engagement
and commitment
What we achieved – 2019
• A 9% year-on-year increase in the talent pool to 257 employees
• 67% of Stratum IV (senior management) and higher vacancies
were filled internally, illustrating the strong focus on internal
appointments for key positions
• A retention rate of 90% for employees graded at Stratum IV
(senior management) and higher
• A 14% increase in female representation in the talent
and succession pool between 2016 and 2019, and a 3%
improvement in the appointment of female leaders in
key positions
• Steady progress in skills transfer to and training and development
of local nationals, reducing the number of expatriate employees
• A 14% improvement in the 26- to 35-year age group talent
and succession pool since 2016 – positioning them for senior
leadership and critical scarce skills positions in the future
• Approximately 740 formal, informal and on-the-job interventions,
including job retentions, were conducted to grow, nurture and
retain talent
• New operating model
established together
with relevant changes to
management structures;
appointment of two Chief
Operating Officers – one
for Africa and one for
International operations
• Roll-out of health of discipline
frameworks completed
• Clearly defined technical and
functional role profiles and
competencies
• Leadership competency
framework embedded in
human resources practice
• Employee survey conducted
to better understand
employee motivations –
action taken to address
issues identified
(See below for more detail)
Talent management and
succession planning
• Good talent cover ratio
achieved for key positions
Simplify and integrate human
resource systems
• Chairman’s Young Leaders
Programme well underway
• Group-wide mentorship
programme launched
(See below for more detail)
• Design of our integrated
human resources framework
currently underway, including
enhanced performance
management and
compensation systems
Obuasi
PAGE 42
PAGE 43
2019
PEO PL E ARE OU R BUS INESS CON TI NU ED
Chairman’s Young Leaders Programme
The Chairman’s Young Leaders Programme underpins our integrated
talent and succession management strategy. The programme
accelerates the development of high potential employees, enhancing
their performance in their current roles. Its aim is to develop and
nurture young talent and establish pipelines for scarce skills talent
and long-term leadership potential within the Company.
In 2019, eight young leaders from a range of disciplines and
operations successfully completed the year-long experiential
development programme. Since its launch in 2015, 34 candidates
have completed and graduated from the programme, 53% of them
women. Overall, more than 90% have been promoted or given a
broader scope of work, and 90% have stayed with the Company.
One Young World Summit
Investment in young leaders continues once they have graduated
from the Chairman’s Young Leaders Programme. Exposure to
developmental opportunities continues as their careers progress.
In October 2019, five young leaders representing our South Africa,
Continental Africa and Australia operations attended the One Young
World Summit in London, United Kingdom. The annual summit
provides a global platform for bright young leaders, between the
ages of 18 and 35 years, to network and debate global business
and social priorities linked to the United Nations SDGs. Those
young leaders who represented AngloGold Ashanti are now part of
the One Young World Network that comprises around 800 young
leaders from some 200 countries.
AngloGold Ashanti mentorship programme
AngloGold Ashanti has established a structured mentorship
programme where an experienced, and predominately senior
employee (the mentor) assists another employee (the mentee) in
developing specific skills and knowledge to enhance the mentee’s
professional and personal growth.
To meet the growing need to provide mentorship as a
developmental opportunity across the organisation, the Future
Leaders Mentorship Programme, launched originally to enhance
the Chairman’s Young Leaders Programme, was revised to
become the AngloGold Mentorship Programme. To implement
this programme, 54 mentors and 18 mentorship facilitators
were trained in 2019. Sixteen mentees – based on a broader
mentorship approach – were also matched to mentors, mainly in
senior leadership roles. It is planned that more employees will be
enrolled in the programme across the organisation in 2020.
Employee engagement
AngloGold Ashanti conducted its third global employee
engagement survey in five years in May 2019. The survey aimed to
improve understanding of our employees, their expectations and
motivations. The survey findings are used to improve perception of
the organisation, to develop our brand as an employer of choice,
and to retain and attract critical and scarce skills talent. Despite
the challenging operating business landscape, 76% of employees
participated in the survey.
Results of the survey highlighted that employees highly rate the
extent to which AngloGold Ashanti conducted its business as a
PAGE 44
values-based organisation, placing a high value on the leadership
and the Company’s vision. Based on the results of the survey, work
began to develop, implement and track relevant interventions to
improve the business culture and reinforce our values.
To improve employee engagement with senior leadership and in
response to feedback from the survey, CEO breakfast sessions
were held on a quarterly basis, providing an opportunity for informal
conversations with employees. Additionally, CEO town hall meetings,
regional COO town hall meetings and other engagements were
hosted to promote a more active dialogue, ensure alignment to the
group’s strategy and support collaboration throughout the business.
Progress on these interventions will be provided to the board on an
annual basis until the next survey. The next employee engagement
survey is planned to take place in 2021.
Fair, equal and responsible pay
At AngloGold Ashanti, we are committed to the principles of fair,
equal and transparent pay, the framework for which is continually
evolving. These principles are reflected in our group remuneration
policy. See Gender equality in the for
further details.
Developing capabilities locally (localisation)
Localisation encompasses efforts to strengthen local economic
and employee development. These efforts include preserving and
increasing local jobs, skills development, local procurement, and
infrastructure and service development.
Increasing localised employment is an important area of focus,
especially in the Continental Africa region where we are currently
working with local institutions to develop local talent. In 2019,
16 key positions in the region were filled by local nationals, despite
increases in expatriate numbers due to the Obuasi redevelopment
and the move to underground mining currently underway at Geita.
Initiatives are underway to ensure that local adequately skilled
individuals with good potential are included in talent pools
and succession planning. Ongoing talent mapping to identify,
develop and maintain a pipeline for general manager and head of
department positions is a critical area of focus to localise senior
management.
In 2019, there was a year-on-year improvement in general manager and head of department talent pools, with significant increases in
successors in the “Ready now”, “Ready in 1-3 years” and “Ready in 3-5 years” categories – see graph below.
General manager and head of department talent pools: successors
100
80
60
40
20
0
11.6
11.4
13.0
87.0
61.0
60.0
37.8
40.0
33.3
Now
1 – 3 years
3 – 5 years
2017
2018
2019
Focusing on diversity and inclusion
Take aways from the gender diversity assessments included:
Fostering a culture of diversity and inclusion, based on dignity and
respect, across our global footprint, is a business imperative.
• A range of issues impede the recruitment and development
of females
Gender assessments conducted internally during the year helped
inform our Global Diversity and Inclusion Framework, which had
oversight from the Sustainability, Ethics and Social Committee.
Knowledge of country-specific legislation as well as input from
focus groups on the needs of females and the barriers that prevent
many from joining and actively participating in the business were
used to determine desired key outcomes of the framework.
The framework 1 , is aligned with the ICMM and United Nations
Global Compact principles as well as our group human resource
objectives to empower all employees, irrespective of race, gender,
ethnicity, religion, sexual orientation and people with disabilities.
The 10-pillar framework guides managers as they work to achieve
a truly diverse workforce and a workforce free of inequality.
Furthermore, unconscious bias awareness workshops are being
rolled out across the organisation.
The Policy on Diversity, which promotes gender and racial
diversity at board level in accordance with the JSE Listings
Requirements, has been expanded to include culture, age, field of
knowledge, skills and experience. Voluntary targets have been set
for race and gender inclusion.
1 Global Diversity and Inclusion Framework
• Cultural issues, favouritism and biases are evident in the
recruitment and promotion of females
• Marginalisation of women exists
• Inadequate facilities and services for females in some areas
of the business
• More inclusive science, technology, engineering and
mathematics (STEM) opportunities can enhance the pipeline
of talent
• Branding of mining, it is not inclusive for women
Gender diversity – key facts
Women directors on the board: 4
Women members on the
Executive Committee: 3
Board – gender profile *
Executive Committee – gender profile *
42% 58%
Female
Male
33% 67%
Female
Male
Chairman’s Young Leadership Programme (CYLP)
* As at the date of this report
PAGE 45
2019 PEO PL E ARE OU R BUS INESS CON TI NU ED
Female representation in the
workforce by region
Corporate office
Continental Africa
South Africa
Americas
Australia
on the conventions and guidelines of the International Labour
Organization, strengthens internal safety assurance processes and
included reviews of internal safety standards and practices, along
with the assessment of protocols used. Alignment with ISO 45001
was completed in early 2019. Three operations have received ISO
45001 certification – Sunrise Dam in 2018 and Geita and Siguiri
in 2019. Other operations will be working toward ISO 45001
certification over the next two years.
46
8
9
19
18
Our safety performance
Our safety performance across our operations continued to
improve in 2019. By the end of the year, Mponeng had achieved
its best-ever injury rate and had been fatality free for one year.
Operations in the Continental Africa region presented their best-
ever all injury frequency rates (AIFR) and in Australia, Tropicana
also achieved its best-ever AIFR and was a finalist in the 2019
Western Australia Work Health and Safety Excellence Awards. This
is a significant step change, highlighting the progress that can be
made through Company-wide focused initiatives and an integrated
safety strategy. Our group AIFR improved by 31% year-on-year to
the lowest level on record. We also passed a calendar year without
a fatal accident for the first time, and by the end of 2019 had
recorded 633 days without a workplace death. This progress is the
cumulative result of numerous safety interventions over many years.
Regrettably post year end in March 2020, we had two seismic-
related incidents resulting in four fatalities, see .
Our health performance
Our strategic focus is moving beyond ‘do no harm’ to one
underpinned by a desire to actively improve, where possible, the
environments in which we operate. During 2019, we reviewed
our health strategy. Work plans were created to facilitate line
management ownership of employee and community health. In
addition to driving productivity and improving employee wellbeing,
this is an important aspect of long-term risk management.
To better address occupational health issues, we are pursuing
a preventative approach rather than being reactive. ‘Predictive
leading indicators’ targeting reductions in occupational exposures
are now included in our operational key performance indicators
to help us identify problem areas and address them proactively.
Occupational health hazard programmes designed to deal with
occupational exposures such as airborne pollutants and noise are
to be introduced at Obuasi in Ghana and Geita in Tanzania, as these
mines move underground. Risk assessments have been expanded
to include both occupational and non-occupational environments.
We educate and raise awareness on the prevention and treatment
of communicable diseases such as malaria, HIV and Ebola, and
other priority health issues. Non-communicable diseases, such as
hypertension, diabetes and other life-style related conditions, the
biggest health issues globally, are of particular concern. Mental
health is also an important risk worldwide and our operations are
currently establishing systems to adequately assess this issue.
The proposed sale of our South African assets will alter the group’s
health profile, as currently most of our occupational disease issues,
such as silicosis and noise-induced hearing loss (NIHL), are found
in our South Africa region. Covid-19 has become a major focus
area in relation to employee well-being, with measures having been
put in place to prevent, contain and manage its spread, as detailed
on page 19. The situation is monitored continuously.
Occupational fatalities
(number of fatalities)
Noise-induced hearing loss (NIHL)
(number of cases)
2015
11
2016
2017
2018
2019
7
7
3
0
All injury frequency rate
(per million hours worked)
2015
8.91
2016
9.39
2017
9.81
3.35
7.18
4.09
7.71
3.14
7.49
2018
6.56
2.13
4.81
2019
4.38
Employees
2.13
3.31
Contractors
2015
68
2016
147
2017
132
2018
39
2019
20
All occupancy disease frequency rate (AODFR)
(per million hours worked)
2015
6.62
2016
7.13
2017
7.03
2018
3.29
2019
1.36
Geita
2020 Bloomberg Gender-Equity Index
AngloGold Ashanti voluntarily participated in the 2020
Bloomberg Gender-Equity Index (GEI). The 2020 index
comprised 325 companies in 42 countries with a
combined market capitalisation of $12 trillion. The GEI
tracks the financial performance of public companies
committed to supporting gender equality through policy
development, representation and transparency. The
Bloomberg GEI metrics measure indicators such as:
the likelihood of a woman remaining employed at a
firm following parental leave, the availability of on-site
lactation rooms, and sponsorship of STEM education
programmes for women.
Our inaugural submission has established a foundation
to benchmark and improve upon in promoting gender
equality, diversity and inclusion. The Company scored
especially high marks in the areas of equal pay and
gender pay parity, sexual harassment policies and
Pro-Women Brand. The full results can be viewed in
the section on ESG impacts on page 50. Our inclusion
in the Bloomberg GEI is recognition of the work we
are doing to achieve diversity across the group. With
the support received from the board and Executive
Committee to promote gender diversity and create the
right working environment for women, opportunities
exist to improve on future submissions.
Keeping our people safe and well
What we did in 2019
Safety remains AngloGold Ashanti’s priority, and together with
providing healthy workplaces and maintaining employee health
and well-being, is a key material issue. We pursue and adapt
safety and health strategies in line with recognised leading
practice in global safety and health standards and systems. These
strategies underpin our 2030 goal of providing workplaces free of
injury and harm.
Embedding and integrating safety and health into the business
and into the Operational Excellence programme is an ongoing
process. This work included mapping and translating ISO 45001
(replacing OHSAS 18001) concepts into work processes to ensure
that methods, such as approaches to risk management, are
aligned across the group. The move to ISO 45001, which is based
PAGE 46
PAGE 47
2019 MANAGING ESG I MPACTS FOR SUSTAI NABI LI T Y
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I n conducting our business activities, we are mindful of
our impact on host communities and the environment.
Our values guide our stakeholder engagement,
decision-making and actions in relation to communities
and the environment and our related responsibilities.
These responsibilities are acknowledged in our five
strategic objectives.
RELATED MATERIAL ISSUES:
Environment:
Governance:
Responsible
environmental
stewardship
Social:
Employee and
community health
Contributing
to resilient,
self-sustaining
communities
Employee and
community health
Contributing
to resilient,
self-sustaining
communities
Employee,
community and
asset security
Artisanal and
small-scale
mining
RELATED RISKS:
Risk 3: Failure to meet our operational and safety targets
Risk 8: Implications of future tailings regulations for our
governance of event risks
Risk 9: Threats to social licence to operate
CAPITALS AFFECTED
A critical aspect in acquiring and maintaining AngloGold Ashanti’s
social licence to operate is contributing positively to communities
and demonstrating responsible environmental stewardship.
Strong environmental, social and governance (ESG) performance
is critical in maintaining stakeholder confidence and trust, and
creating value through the cycle.
ESG performance and the SDGs
AngloGold Ashanti is committed to the Sustainable
Development Goals (SDGs). Announced in 2015, the SDGs
and related targets were set by the United Nations (UN)
to support its 2030 Agenda to end poverty and inequality,
protect the planet and ensure prosperity for all.
Our sustainable development strategy supports our overall
business strategy and is aligned with the SDGs. The SDGs
also speak to our environment, social and governance
(ESG) performance and are aligned with the 10 principles
of the ICMM.
Having considered and interrogated the SDGs, we have
categorised and prioritised them, based on the extent to
which we can contribute to each as follows:
SDGs selected as our main focus
Core to our business and committed to making a
positive contribution:
Those SDGs we directly affect
Not core to our business, but we have a direct impact:
Social and
relationship
capital
Natural
capital
Financial
capital
Intellectual capital
(governance)
Those SDGs we indirectly affect
May be impacted by our activities and may
require intervention:
PAGE 48
1 Code of Ethics
2 Mine tailings disclosure
Our ESG performance
G = GOVERNANCE
Governance and partnerships
Good corporate governance is integral to how we operate, to long-
term value creation and thus to the sustainability of our business.
We apply the principles and recommendations set out in the King
IV Report and other relevant laws, and comply with all the listings
requirements of the stock exchanges on which we are listed.
We are committed to promoting good governance and being a
responsible corporate citizen. Our Code of Ethics 1 and values
guide our conduct, and that of our contractors as well.
The board provides ethical leadership and is responsible for
our overall corporate governance. It acknowledges that sound
governance principles and practices underpin value creation for
shareholders and the sustainability of the business, and are thus
crucial to the achievement of our business objectives.
Our governance processes are set out in .
Further detail on this is provided in the and on our assurance processes. See also
the in the .
In launching the SDGs, the UN explicitly recognised that in
achieving these goals business would have an important role to
play and that this would entail collaboration with governments
and NGOs, among others. Hence the importance of SDG 17 –
Partnerships for the goals – in acknowledgment of the strong
commitment to global partnership and co-operation required to
deliver on the goals. One of the targets specified for SDG 17 is “to
encourage and promote effective public, public-private and civil
society partnerships, building on the experience and resourcing
strategies of partnerships”.
In the spirit of SDG 17– Partnerships for the goals – we collaborate
with and support various organisations that include the ICMM, the
World Gold Council (WGC) and the World Economic Forum (WEF),
among others. As a member of the ICMM, we commit to their 10
principles which underpin sustainable development in the mining
industry, and include protecting biodiversity, respecting human rights,
and contributing to the sustainable development of host countries.
We also work together with the United Nations Environment
Programme (UNEP) and the Principles for Responsible Investment
(PRI) to collaborate on various industry issues. We have also
participated in efforts by the ICMM members and the Global
Tailings Review to develop an international tailings standard for
the safer management of tailings storage facilities, following
the Brumadinho dam wall failure in Brazil early in 2019. The
Brumadinho TSF failure also resulted in a significant global drive
for increased transparency around the management of tailings
facilities. In 2019 there was a coalition comprising the Church of
England Pensions Board, the Swedish Council on Ethics and the
UN-supported PRI that sent a request to global mining companies
for a public disclosure of detailed information relating to their TSFs
and the management thereof. See AngloGold Ashanti’s response
to this 2 .
PAGE 49
2019
MA NA G ING ESG IMPA CTS FOR SUSTA INA BI LITY
CO N TINUED
Bloomberg Gender-Equality Index
Responsible Mining Index 2020
We actively participate in and contribute directly to various global
forums. Our Chairman serves as co-chair of the WEF’s new Africa
Regional Stewardship Board, playing an integral role with delivery
on the Africa Growth Platform, while our CEO was appointed
Chairperson of the WGC in February 2020, enabling AngloGold
Ashanti to play a more intimate role in the organisation's drive to
stimulate and sustain demand for gold.
Participation in sustainability indices
We engage openly with various indices such as the FTSE Russell,
the Responsible Mining Index (RMI), the Dow Jones Sustainability
Indices (DJSI) and the Bloomberg Gender-Equity Index, which have
rated our sustainability performance during the year.
FTSE4Good 2019
• The FTSE4Good Index Series is designed to measure the
performance of companies demonstrating strong ESG practices.
• Overall rating: 4.3 out of a total of 5 (up from 4.2 in 2018). This
compares favourably with average scores of 2.6 for the gold
mining sector, 2.1 for the basic materials industry and 3.5 for
South Africa.
• Score by theme:
• Environment
• Social
• Governance
= 3.9
= 4.0
= 5.0
RobecoSAM Dow Jones Sustainability Index
AngloGold Ashanti has been included in the emerging markets
index component of the Dow Jones Sustainability Indices (DJSI)
for the fourth consecutive year. Our inclusion in the RobecoSAM
Dow Jones Sustainability Emerging Markets Index acknowledges
the continued improvement in our sustainability practices. In the
2019 assessment, AngloGold Ashanti was among the top 15% of
companies in the industry and achieved a score within 30% of the
industry’s top performing companies.
The RobecoSAM ESG rating is now part of S&P Global, positioning it
within the broader investment community. AngloGold Ashanti's overall
score was 69 (2018: 66). Scores in the ESG categories were as follows:
• Economic dimension:
62 (2018: 64) – industry average: 41
• Environmental dimension:
73 (2018: 70) – industry average: 35
• Social dimension:
73 (2018: 66) – industry average: 33
Obuasi
AngloGold Ashanti has been included in the 2020 Bloomberg
Gender-Equity Index (GEI) in recognition of the work being done
to improve diversity and inclusion across the group. Our overall
score of 69% compares with an average score across all sectors
of 63% and 67% for the mining sector. Our highest scores
were for disclosure, equal pay and gender parity, and for our
sexual harassment policies. Opportunities exist to improve our
performance – in terms of a female leadership and talent pipeline,
and inclusivity – and submission. With the support of the board and
executive committee to promote gender diversity and create an
inclusive working environment, we are well placed to achieve this.
See and the for
more information.
Bloomberg Gender Equality
Index Scores
AngloGold
Ashanti
All sector
average
Materials
sector
Overall GEI* average
Disclosure score
Data Excellence Score
Female leadership and
talent pipeline
Equal pay and gender
pay parity
Inclusive culture
Sexual harassment policies
Pro-women brand
69%
97%
57%
63%
90%
52%
67%
94%
55%
30%
48%
51%
89%
39%
80%
75%
50%
54%
58%
48%
67%
47%
69%
43%
* Total number of companies: 325, of which 20 are in the materials sector.
aim for a consistent approach across our global portfolio, while
enabling operations to adapt their environmental management
programmes to varying operational, geographical, climate and
regulatory settings.
In addition, we are actively working to integrate environmental
management with our operational functions, and formalising cross-
functional collaboration.
In 2019, our environmental activities focused on:
• Water: Water is a valuable and, in some areas, a scarce
resource. All our operations are subject to either a scarcity or an
excess of water, with 17% of our operations – such as Siguiri
and Sadiola – in high water stress regions. A primary objective
of water management at site level is to minimise the volume of
water imported, often working towards a site-specific target.
To better track this, we monitor the ratio of fresh water re-used
and the volume of water imported per tonne of ore treated.
Another primary water management objective is to prevent the
contamination of water resources by our activities. Where this
has not been possible, environmental incidents are logged,
investigated and corrective actions are put in place. In 2019 we
experienced three reportable environmental incidents. See
• Tailings management: The safe and responsible management of
tailings, both during and after mining, is critical to the sustainability
of our industry and in protecting the environment. AngloGold
Ashanti has stringent monitoring and controls in place for the
management of its TSFs. For work undertaken in Brazil, see above
and the Americas’ regional review in this report as well as the AGA
Mineração and Serra Grande . See also the case study:
Tailings storage facility management in Brazil in the
• Energy and climate change: Mining is by its very nature more
energy intensive. Lower grades mean more rock has to be shifted
to maintain production and as mining progresses further away
from infrastructure, the longer distances require more energy to
transport both workers and the rock mined.
In 2019, we continued to mitigate our carbon footprint, marginally
reducing our GHG emissions intensity by 1% from 31.8kg of GHG
per tonne treated versus 32.1kg of GHG per tonne treated in
2018. Absolute GHG emissions remained flat. This was despite
a 3.7% increase in total energy used to sustain production.
These improvements were led by continued benefits from energy
efficiency gains at our South African mines, which, despite a 9.3%
increase in the South African grid emission factor, managed an
8.5% reduction in absolute emissions and a 9.2% reduction in
emissions intensity compared to 2018.
AngloGold Ashanti was ranked fourth out of 38 global mining
companies for its mine-site-level results in the Responsible
Mining Index (RMI) which assesses the extent to which large-
scale mining companies address a range of economic and ESG
issues across their mining activities. We scored in the top five for
performance in economic development, lifecycle management,
community wellbeing and environmental responsibility. Other
areas which are assessed by the index are business conduct and
working conditions. We were commended for, among others, our
transparency in relation to the negative impacts our operations can
have, our formalised approach to supporting local procurement
and local business development, for our comprehensive approach
to mitigating the impacts of collective retrenchment and relatively
detailed disclosure of environmental incidents.
Our ranking (out of 38 companies) for the six performance areas
was as follows:
• Community wellbeing – 2
• Lifecycle management – 3
• Economic development – 3
• Environmental responsibility – 5
• Working conditions – 7
• Business conduct – 11
E = ENVIRONMENT
Environmental responsibilities and performance
Key areas of our environmental responsibilities are protecting
biodiversity, including land rehabilitation, and mitigating impacts
on water, energy and climate change, and air. The extent to
which we manage these at each of our operations is influenced
by their different geographies and applicable regulations. At an
operational level, our environmental work is governed by our Group
Environmental Policy, Standards and Guidelines, which together
Water use efficiency
(kilolitres per tonne treated)
Energy intensity
(gigajoule per tonne treated)
GHG emissions intensity
(kilograms of GHG per tonne treated)
2015
0.64
2016
0.59
2017
0.61
2018
0.57
2019
2015
0.31
2016
0.33
2017
0.35
2018
0.32
2015
45
2016
48
2017
46
2018
32
0.59
2019
0.33
2019
32
PAGE 50
PAGE 51
2019
MA NA G ING ESG IMPA CTS FOR SUSTA INA BI LITY
CO N TINUED
External pressure around ESG issues, especially climate
change, continue to intensify. This pressure has included some
of AngloGold Ashanti’s largest shareholders and the wider
investment community. We are currently beginning development
of a comprehensive new climate change strategy that will reset
our emission reduction targets, ensure we protect our operations
and our host communities against physical climate risks,
continue to implement appropriate climate disclosure systems,
and maximise opportunities for cost-saving and energy efficiency.
We will be guided by, among other things, the ICMM’s updated
Climate Change Position Statement. Plans are underway to align
our primary climate change disclosure with the Task Force on
Climate-related Financial Disclosure (TCFD) recommendations.
• Integrated closure management: The social aspects of mine
closure and related management are becoming increasingly
important in the integrated management of mine closure. There
is also a growing emphasis on contributing toward resilient
and sustainable communities during the lifecycle of the mining
operation. We are working to achieve this by engaging with
our communities, allowing them to identify the projects they
would like to see developed in the areas of health, education,
agriculture, small business and supply chain development.
Simultaneously, as part of our mine closure responsibilities,
we will continue rehabilitating disturbed land as we mine.
Closure is currently underway at Yatela while mining operations
have ceased at Morila. Geita’s mine closure plan has been
submitted to the authorities in Tanzania while at Obuasi, a
Closure Consultative Committee has been established. Also at
Obuasi, a Reclamation Security Agreement (RSA) describes the
activities required to reclaim land previously disturbed by mining
activities. It is based on a reclamation plan approved by the Ghana
Environmental Protection Agency (EPA), in terms of which funds
are to be posted or bonded as security for land reclamation. This
financial surety is aimed at helping to ensure that adequate funds
will be available to pay for site rehabilitation and post-closure
monitoring and maintenance at any stage in the life of the mine.
Geita
PAGE 52
Rehabilitation liabilities per operation ($ million)
Operation
Continental Africa
Ghana
Iduapriem
Obuasi (1)
Guinea
Siguiri
Mali (2)
Morila
Sadiola
Yatela
DRC
Kibali (2)
Tanzania
Geita
South Africa
Great Noligwa
TauTona (3)
Mponeng
Legacy projects
- Vaal River
- West Wits
- Other
First Uranium SA
Americas
Argentina
Cerro Vanguardia
Brazil
AGA Mineração
Serra Grande
United States of America
Other
Colombia
La Colosa
Gramalote (2)
Australia
Australia
Sunrise Dam
Tropicana
Less equity-accounted investments included above (2)
Less liabilities held for sale included above (4)
2019
Restoration
Decommissioning
249.9
32.3
141.5
28.5
–
12.2
3.1
–
32.3
15.3
5.9
3.5
2.2
–
–
0.2
3.5
129.0
58.2
47.1
16.3
0.4
6.6
0.4
59.5
28.4
31.1
453.7
(15.7)
(15.1)
422.9
158.8
14.0
44.8
25.9
6.5
12.5
7.8
11.5
35.8
81.3
27.5
16.5
2.8
3.0
2.8
–
28.7
38.0
19.1
14.9
4.0
–
–
–
37.3
17.0
20.3
315.4
(38.3)
(81.3)
195.8
Total
408.7
46.3
186.3
54.4
6.5
24.7
10.9
11.5
68.1
96.6
33.4
20.0
5.0
3.0
2.8
0.2
32.2
167.0
77.3
62.0
20.3
0.4
6.6
0.4
96.8
45.4
51.4
769.1
(54.0)
(96.4)
618.7
(1) Includes Mpasatia (Bibiani pit)
(2) The equity-accounted investments refer to the Mali assets, Kibali in the DRC and Gramalote in Colombia.
(3) Includes Savuka
(4) Includes the liabilities held for sale of Mponeng, Great Noligwa, TauTona, Vaal River and West Wits legacy projects and First Uranium.
2018
Total
378.3
42.8
163.2
53.1
7.6
26.6
12.3
10.6
62.1
75.7
30.7
16.9
4.7
2.8
0.2
0.2
20.2
137.5
69.1
48.6
12.6
0.4
6.4
0.4
88.5
40.6
47.9
680.0
(57.5)
–
622.5
PAGE 53
2019
MA NA G ING ESG IMPA CTS FOR SUSTA INA BI LITY
CO N TINUED
S = SOCIAL
Our social performance covers our activities in relation to our
employees and communities. To learn about our activities in relation
to our employees in the past year, see
and .
Communities
One of AngloGold Ashanti’s six core values is that the communities
and societies in which we operate should be better off for our having
been there. As our operations develop and expand, requiring land,
or embark on closure, the principle of shared value becomes more
important, making this ever more significant.
We operate in environments where the communities affected by
our operations expect a meaningful existence beyond the life of
our mines. Creating direct economic opportunity can build trust
and acceptance of the mining industry and can lead to increased
community collaboration and economic growth. While community
demands and the complexity of social challenges faced may be
felt more acutely at our operations in emerging economies, where
the challenges of poverty, unemployment and inequality are most
visible, the concept of shared value is relevant across all our
operations. Our social performance is a critical determinant of our
continued ability to conduct our business activities, underpinning
as it does our ability to maintain our social licence to operate.
Our 2030 aspirational community goal, which is aligned with the
SDGs, is “Contributing to resilient, self-sustaining communities”
that are free from poverty and inequality. To deliver on this
aspiration, we endeavour to ensure that communities experience
real and sustainable benefits from our operating activities.
Such an approach is aligned with the increasing emphasis on
responsible investment.
For more detailed information on our contribution to resilient self-
sustaining communities, see the and . These reports
also contain information on our performance and work in relation
to community health, community and asset security, respecting
human rights and artisanal and small-scale mining.
Socio-economic development and community upliftment
Socio-economic development initiatives are vitally important
if we are to ensure self-sustaining, resilient communities. The
ability to demonstrate the positive impacts from our activities
is important in winning and maintaining our social licence to
operate. All operations have implemented social development
programmes in line with their own development imperatives,
including the profile and needs of host communities, the
resources available for investment and relevant regulatory
requirements, among other things.
The socio-economic development projects implemented are
aligned with identified community investment priorities, including
social infrastructure, health facilities and services, education,
training and skills development, and small, medium and micro
enterprise (SMME) development. For 2019, group community
investment spend totalled $27.69 million as compared with
$22.25 million in 2018.
PAGE 54
Community investment by region (%)
Corporate office
Continental Africa
South Africa
Americas
Australia
3
61
11
22
3
Total
centrally managed
procurement spend
Total
regionally managed
procurement spend
69%
$1.41bn
31%
$0.64bn
Local procurement
Implementation continued of our group Local Procurement Policy
that was launched in 2018. This policy seeks to establish a
company-wide, sustainable local procurement programme to safely
and ethically stimulate economic and social development within
the countries and communities where we operate. It is central
to building local value chains as we support the development of
local suppliers. During the year, a multi-stakeholder workshop led
to the completion of a local business development framework
and guidelines for sustainable development across our Africa
operations. Implementation of these is evidenced for example by
the partnerships established with local suppliers, amongst others
when we started our Obuasi mine.
This policy is intended to address increasing pressure from host
governments and communities on mining companies to overhaul
local procurement processes and systems, which remains a
challenge. We are committed to implementing our localisation –
see – and local procurement policies
and strategies.
Total procurement spend
($ billion)
2015
2.10
2016
1.98
2017
2.29
2018
2.06
2019
2.05
Community investment (less equity-accounted
investments) ($ million)
Community
investment
(2018: $22.25m)
$27.69m
84%
$2.05bn
Total procurement spend
(2018: $2.06bn)
Proportion of spend
on local suppliers
(2018: 78%)
2015
15.22
2016
20.16
2017
24.05
2018
22.25
2019
Community incidents
(number)
2015
15
2016
2
2017
17
2018
26
2019
27.69
32
Obuasi
PAGE 55
2019 I
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PAGE 56
CFO’S REVIEW
EXECUTIVE SUMMARY (1)
Christine Ramon
Chief Financial Officer
E f f e c t i v e l y b a l a n c i n g c o m p e t i n g
c a p i t a l n e e d s t o a c h i e v e
b a l a n c e s h e e t l e v e r a g e t a r g e t s
STABLE
GROWTH
T he year 2019 was a strong financial year for the business. Free cash flow, before growth capital, increased by
106% to $448m, while cash flow from operating activities increased by 22% to $1,047m. Measures have been
taken during the year to instill more financial discipline and follow a clear framework for allocating capital. We
have and will continue to prioritise the reduction of debt with excess cash as we believe that maintaining lower debt
will help us to be more sustainable through the cycle. We ended the year with adjusted net debt to adjusted EBITDA
improved to 0.91 times, well below our targeted level of 1 times through the cycle.
Reinvestment in our core asset base has enabled us to
optimise output and plan for the future with Ore Reserves
outside of South Africa replenished.
• Dividend increased by 57% to approximately 11 US cents per
share (165 ZAR cents per share up from 95 ZAR cents per share
in the prior year).
The rising cash flows from our operations has grown our dividend by
57% to 11 US cents per share. Our dividend policy, which pays 10%
of free cash flow, before growth capital, at the discretion of the board
of directors, reflects a discipline in our capital allocation process: we
carve out cash for shareholders before we look at growth options.
Our investment in growth has culminated in the historic pouring
of first gold at Obuasi in December 2019, bringing Phase 1 of the
redevelopment project to a conclusion on time and within budget.
Progress has been made on the sales processes announced. On
23 December 2019, the company announced that it had reached
an agreement to sell its interest in the Sadiola Mine, while on 12
February 2020, the company announced that it had reach an
agreement with Harmony to sell all its remaining South African
assets and related liabilities. In Argentina, the sales process related
to Cerro Vanguardia continues. The sales proceeds from these
asset sales will be prioritised to debt reduction.
Financial highlights of the year under review include:
Group performance
• The group met 2019 full year guidance with production at
3.281Moz and All-in sustaining costs (AISC) of $998/oz
(including $6/oz non-cash rehabilitation provision in Brazil as
guided in the third quarter of 2019)
• Record production achieved at Kibali, Tropicana and Iduapriem,
while Geita delivered the highest production in 14 years
• Free cash flow, before growth capital, increased by 106% to
$448m, while cash flow from operating activities increased by
22% to $1,047m
• Adjusted net debt to Adjusted EBITDA improved to 0.91 times,
with cash and cash equivalents at $463m
• The company reached agreements to sell the remaining South
African assets and the Sadiola mine in Mali
AngloGold Ashanti’s cash flows and earnings showed further
growth in 2019, and for the seventh consecutive year, production,
capital and all cost guidance metrics were met.
Cash flows from the business continue to improve, with free cash
flow at $127m up 90% compared to 2018. Adjusted EBITDA in
2019 increased to $1,723m, versus $1,480m in 2018. Both metrics
benefitted from the increased gold price received during 2019,
partly offset by lower gold output, increased taxes and royalties.
All-in sustaining costs (AISC) of $998/oz in 2019, compared to
(1) The information included in the Chief Financial Officer’s review is
provided for the AngloGold Ashanti group (i.e. including South Africa),
unless otherwise indicated. Following the announcement of the South
African asset sale, the South African operations are recorded as
discontinued operations in the financial results. Comparative results
have been restated where required.
PAGE 57
Key guidance metrics
met or exceeded f or the
seventh consecutive year
Production of 3.2 81Moz
106% increase in free cash flo w
before gro wth ca pital to $448m
Adjusted net debt to adjust ed
EBITDA impro ved t o 0.9 1 times
with cash and cash
equivalents of $463m
Agreement reached on sale of
remaining South African assets
and Sadiola mine in Mali
Dividend 165 ZAR cents
(a pproxima tely 11 US c ents) per
share declared – up 57%
2019
CFO ’S REVIEW CONTIN UED
$976/oz in 2018, was impacted by a $6/oz non-cash impact
from the revised rehabilitation provisions in Brazil, as required
by new legislation promulgated during the third quarter of 2019.
Excluding this impact, AISC increased by 2% year-on-year.
Basic loss for the year ended 31 December 2019 was $12m,
or 3 US cents per share, compared with basic profit of $133m,
or 32 US cents per share in 2018. Earnings were negatively
impacted by the impairment of the South African assets
associated with their held for sale accounting treatment ($385m,
net of tax), higher rehabilitation provisions in Brazil ($15m, net
of tax) and higher care and maintenance costs in South Africa
and Ghana ($13m, net of tax). Excluding impairment charges,
headline earnings were $379m, or 91 US cents per share,
compared with $220m, or 53 US cents per share in 2018.
The group ended the year with a robust balance sheet, with
improved cash flows contributing towards continued debt
reduction. At the end of December 2019, the ratio of adjusted
net debt to adjusted EBITDA was 0.91 times (1 times from
continuing operations), below the targeted level of 1 times
through the cycle and at the lowest level since 2012.
As at 31 December 2019, liquidity remains strong with $1.42bn
undrawn on the $1.62bn US dollar Revolving Credit Facilities (RCFs)
approximately R4.65bn available on the R5.65bn South African
RCFs and other facilities, and cash and cash equivalents of $463m.
In South Africa, we cancelled one of our South African RCFs totalling
R1.4bn at the end of February 2020. Subsequent to year-end, we
drew on the remainder of our US Dollar RCF to bolster our cash
position as indicated later in the report.
The board approved a dividend of ZAR 165 cents per share
(approximately 11 US cents per share), in line with the dividend
policy based on 10% of free cash flow, before growth capital
expenditure. This compares to a dividend of ZAR 95 cents
per share (7 US cents per share) in 2018. The increase in the
dividend reflects management's commitment to improving
shareholder returns, while maintaining disciplined capital
allocation. The board is satisfied that subsequent to the dividend
declaration, the company has adequate balance sheet flexibility
and sufficient funding facilities available to withstand market
volatility.
Strategic priorities
Maintaining a reliable track record of consistent and prudent
behaviour as custodians of shareholder capital continues to be
central to our approach. Capital allocation continues to remain
disciplined and focused on improving value creation through
effective management and without placing undue financial or
operating risk on the business. This approach does not prioritise
scale but rather focuses on sustainable margins and free cash
flow growth to improve total returns to shareholders over time.
Whilst noting the establishment of two global mega gold-
producing entities after the mergers of Barrick/Randgold and
Newmont/Goldcorp, the group continues to favour organic
opportunities to create value, over those available through
acquisition. The company’s equity remains an important asset
that should be protected while efforts are undertaken to close the
considerable valuation gap that exists with global industry peers.
We continue to jealously guard our equity and have focused on
self-funding growth projects over the last number of years with
our ongoing capital needs not requiring the issue of additional
equity. The last significant issue of equity occurred in 2013 when
we issued 18,140,000 shares to settle the remainder of the
outstanding 6% Mandatory Convertible Bonds.
Within this framework of self-funding we continue to target a
return of 15% through the cycle at a long-term real gold price of
$1,200/oz on our new investments, using conservative discount
rates that account for specific jurisdictional and operating risks.
All-in sustaining costs vs. gold price
($/oz)
1,700
1,600
1,500
1,400
1,300
1,200
1,100
1,000
900
800
700
14%
margin
19%
margin
21%
margin
16%
margin
23%
margin
21%
margin
2013
AISC (1)
Average annual gold price
(1) World Gold Council Standard
(2) Spot price as at 21 February 2020, the date of the preliminary results announcement
Spot
$1,610/oz (2)
28%
margin
2019
The integrity of the balance sheet is fundamental to the long-term
health of the business and enforces disciplined decision-making
in allocating capital. This means that the company will continue
to rank and prioritise its investments, assessing them not only
on their returns but also on their affordability with respect
to maintaining leverage ratios at or around targeted levels.
Importantly, the company will weigh these competing priorities
and consider the full suite of financing opportunities available
when determining whether or not to proceed with an investment.
Margin improvement – an ongoing priority
As in prior years, we continued to focus our efforts on driving
operational excellence and cost efficiencies across our business.
Our efforts in the current year were supported by a higher gold
price environment.
The group AISC margin improved to 28% in 2019 from 23% in
2018. For continuing operations, the margin has improved to
30% in 2019 from 26% in 2018.
Balance sheet strategy to enforce capital
discipline
Our balance sheet strategy continues to enforce capital discipline,
with adjusted net debt at $1.572bn, 5% lower than last year. Our
adjusted net debt to adjusted EBITDA ratio of 0.91 times (1 times
from continuing operations) reflects ample headroom to our 3.5
times debt covenant. Liquidity remains strong, providing good
flexibility in a volatile climate.
As stated above, our liquidity remains strong with sufficient
undrawn facilities. The company will continue targeting a lower
adjusted net debt to adjusted EBITDA ratio of 1 times through
the cycle. We believe this target level is sustainable, even as
we invest inward, service debt obligations and pay dividends to
shareholders at the discretion of the board of directors.
We remain strongly levered both to the gold price and currencies
and we expect cash flow generation across the business to
continue to benefit from prevailing market conditions as well as
from efficiency and operational improvements in our business.
Subsequent to year end, on 18 March 2020, the Company drew
$900m under the US dollar RCF to fund the repayment of the
$700m 5.375% bonds maturing on 15 April 2020 and to support
short-term liquidity in the event of continuing disruptions in the
global financial markets as a result of the recent outbreak of the
coronavirus (covid-19). In addition, a further $450m was drawn
down on the remainder of the US Dollar RCF and received on
27 March 2020.
Continued positive cash flow momentum
We continue to follow a balanced approach, with a focus on
positive free cash flow generation while reinvesting in our portfolio.
Our dividend policy remains to pay out 10% of free cash flow,
before growth capital, at the discretion of the board. Subject to
this discretion, our dividend policy represents a key element of our
disciplined capital allocation.
Free cash flow before growth capital was $448m (2018: $278m,
after the adjustment for South African retrenchment payments
of $61m). The board approved a dividend, representing a 57%
increase in dollar terms.
The continuation of the dividend is a reflection of our capital
discipline and commitment to improving shareholder returns on
the back of sustainable free cash flow generation. Importantly,
we will maintain adequate balance sheet flexibility and utilise our
cash flows and available facilities to fund our ongoing capital and
operational requirements.
Net debt
($m)
4,000
Self-funded development
of Tropicana, Kibali
3,000
2,000
1,000
50% decline
in net debt
2012
2013
2014
2015
2016
2017
2018
2019
Self-funded redevelopment of Obuasi
Adjusted net debt to adjusted EBITDA (times)
2.5
2.0
1.5
1.0
0.5
0
1.0 times, new target
through the cycle
0.91 times (1)
2013
2014
2015
2016
2017
2018
2019
Last 12 months adjusted net debt to adjusted EBITDA ratio
(1) Calculations include discontinued operations
Undrawn facilities*
(at 31 December 2019)
c.$2.2bn
• ZAR facilities R4.650bn
• $ RCFs**
$1,420m
• Cash
$463m
* Total calculated with ZAR facility at R13.9937/$, and AUD facility at 0.70492
** $1.4bn RCF includes a capped facility of A$500m
PAGE 58
PAGE 59
2019 CFO ’S REVIEW CONTIN UED
Free cash flow generation
(Adjusted FCF)
1,000
800
600
400
200
0
(200)
(400)
(600)
(800)
(1,000)
(1,200)
155
821
(666)
2012
703
(1,064)
(361)
2013
391
249
142
(1) 371
169
202
(2) 424
116
308
(4) 278
150
128
(3) 174
124
50
448
321
127
2014
2015
2016
2017
2018
2019
Pre-growth capex
Adjusted free cash flow generation
(1) Adjusted for bond redemption premium of $61m on part settlement of $1.25bn high-yield bonds; for Obuasi redundancy costs of $210m; and the 2014 Rand Refinery loan of $44m.
(2) Adjusted for bond redemption premium of $30m on settlement of remaining $1.25bn high-yield bonds.
(3) Adjusted for SA retrenchment costs paid of $49m.
(4) Adjusted for SA retrenchment costs paid of $61m.
Delivery against 2019 financial and operational objectives
1. Continued focus
on sustainable
free cash flow
generation
Free cash flow of $127m for the full year represents a 90% improvement year on year
(2018: $67m and 2017: $1m). All the group’s major operating mines were cash positive.
Free cash flow was bolstered by higher gold prices which offset lower production, higher
capital expenditure, increased profit based taxes and the slower cash repatriation from
Kibali in the DRC.
ü
Objective
met
Although we received $75m in dividends from Kibali for the year, our attributable share of
cash balances in-country increased to $202m as at 31 December 2019 (2018: $53m). Our
joint venture partner, Barrick, who is the operator at Kibali, continues to engage with the
government of the DRC with regards the cash lock-up in-country.
2. Improve margins Our margins for total cash costs, AISC, and all-in costs (AIC) on revenue from continuing
operations were 46%, 30% and 17%, respectively. Except for AIC, the margins reflected
increases from 2018 (total cash costs: 42%; AISC: 26%; and AIC: 18%). Margins were
positively affected by the higher gold price received during the year, with AIC marginally
down year-on-year as a result of the increased growth capital expenditure incurred during
the year relating to the Obuasi redevelopment project.
ð
Objective
ongoing
Delivery against 2019 financial and operational objectives (continued)
3. Maintain strict
cost and capital
discipline
The group’s total cash costs were largely steady with total cash costs of $776/oz in 2019,
$3/oz higher than $773/oz achieved in 2018. Total cash costs were favourably impacted
by weaker currencies, which assisted in offsetting inflationary pressures in the emerging
economies that we operate in, particularly in Argentina and South Africa. The main cost
drivers contributing to inflationary pressures related to mining contractors, labour and
consumables, which are all predominately indexed to inflation.
ð
Objective
ongoing
Total cash costs were further adversely impacted by lower production, predominately grade
impacts and lower planned by-product revenue at Cerro Vanguardia. Operational efficiency
improvements continue to be a key group focus to mitigate operational cost pressures.
AISC of $998/oz in 2019, were 2% higher than $976/oz achieved in 2018. AISC for 2019
include a non-cash $6/oz for additional environmental rehabilitation obligations in Brazil
pertaining to tailings facilities, under the new legislation enacted in August 2019, following
Vale’s Brumadinho failure in January 2019. Lower sustaining capital was largely offset by
IFRS 16 lease costs, higher rehabilitation provisions and other non-cash costs.
Total capital expenditure (including equity accounted investments) increased by 13% to
$814m in 2019, compared to $721m in 2018. This included project capital expenditure
of $321m relating to Obuasi, Siguiri, Tropicana, Mponeng and Quebradona in 2019,
compared to $150m invested in growth projects in 2018. Sustaining capital expenditure
decreased to $493m in 2019, compared to $571m in 2018.
4. Advance Obuasi
for first production
by the end of 2019
The Obuasi redevelopment project achieved its first pour of gold on 18 December 2019,
signalling the successful redevelopment of the mine into a modern, mechanised mining
operation since mining activities were suspended five years ago. At the end of 2019, the
overall project was 77% complete. The Phase 1 ramp up is now in progress to achieve
2,000 tonnes per day.
Phase 2 of the project, to achieve a capacity of 4,000 tonnes per day, is firmly on schedule
and within budget with commissioning scheduled for the end of 2020.
See section for more detail on the project.
5. Complete asset
sale processes
Processes to sell assets in Mali, South Africa and Argentina progressed during the year. On
23 December 2019, the company announced that it had reached an agreement to sell its
interest in the Sadiola Mine to Allied Gold for an attributable cash consideration of $52.5m.
ü
Objective
met
ð
Objective
ongoing
After the financial year end, on 12 February 2020, the company announced it had reached
an agreement with Harmony to sell all its remaining South African producing assets
and related liabilities with expected proceeds of around $300m, subject to subsequent
performance, and with additional proceeds if the West Wits assets are developed below
current infrastructure.
Both the Mali and South African sales processes are expected to close in 2020.
Subsequent to the announcement of the sale of the South African assets, Moody's affirmed
a credit-positive impact of the sale citing another positive step in strategy to streamline the
portfolio and lower the long-term cost structure of the business.
In Argentina, the sales process related to Cerro Vanguardia continues. This process is at
an advanced stage and we hope to make a decision whether to accept a firm offer or to
terminate the sales process in the second quarter of 2020. Cerro Vanguardia continues
to be a strong contributor to the group, with 225,000oz produced in 2019 at an AISC of
$859/oz, generating gross profits of $108m.
6. Ongoing
stakeholder
engagement
The group’s strategy is underpinned by our overall objective, which is to deliver quality
production, responsibly, with an emphasis on widening margins, extending mine lives and
improving the portfolio. This forms the basis of our continuing and ongoing stakeholder
engagement, whether with investors, governments, communities, or employees.
ð
Objective
ongoing
The global enhanced interest in environmental, sustainability and governance disciplines
(ESG) for companies operating in the extractive activities industries has become a focus
for investors and it receives considerable attention from the group. Maintaining and
enhancing our licence to operate through effective ESG practices, is critical to achieving
our objectives.
PAGE 60
PAGE 61
2019 CFO ’S REVIEW CONTIN UED
Delivery against 2019 financial and operational objectives (continued)
7. Advance
Colombian
projects up the
value curve
At Quebradona, the company continued with its feasibility study, after the declaration of
a reserve at the end of 2018. It is expected that the results of the feasibility study will be
announced towards the end of 2020. During the year, drilling focused on geotechnical
programmes for site infrastructure, the tunnel trace, above the mine area and the crusher
chamber.
ð
Objective
ongoing
On 16 September 2019, the company announced that it had reached an agreement with
B2Gold, its joint venture partner at the Gramalote Project in Colombia, whereby B2Gold will
fund an investment and exploration programme in 2020 to the value of $13.9m, in order
to earn back to a 50:50 joint venture and assume management of the project with effect
from 1 January 2020. This agreement provides additional momentum to the Gramalote
Project, one of AngloGold Ashanti’s two advanced exploration projects in Colombia. At the
time of the announcement, B2Gold owned a 48.3% stake, with AngloGold Ashanti holding
the remaining 51.7%. B2Gold and AngloGold Ashanti have agreed on a budget for the
feasibility study on the Gramalote Project of approximately $37m. As manager, B2Gold
plans to continue the feasibility work with the goal of completing a final feasibility study by
the end of 2020.
Looking ahead to 2020
We have a number of key catalysts we intend to focus on
in 2020. Our strong focus on ESG related matters is paying
dividends and we will specifically continue our focus and attention
on improving our safety record. We have made good progress
in streamlining the portfolio and our continued focus in 2020 will
be on the successful commissioning of Phase 2 of the Obuasi
project by the end of the year. Simultaneously, we expect that
our planned increased Ore Reserve Development and Mineral
Resource Conversion over the course of 2020 and 2021 will
provide positive results in the medium term. Our additional
anticipated sustaining capital spend for 2020 is estimated at $30/
oz. We expect to close on all the ongoing, announced divestment
processes.
We expect to continue to improve cash flows, potentially resulting
in further increases in our dividend pay-outs. Our leverage is
currently at the target level we would like to maintain through the
cycle and, given the strong fundamentals in place currently, we
expect further improvement on this leverage. We aim to achieve
all of this while remaining disciplined in managing costs and
capital expenditure, thereby optimising current operating margins.
COVID-19 virus pandemic, guidance and liquidity
At the date of the approval of these financial results, the COVID-19
virus outbreak continues to spread across the globe and
contributes to economic instability in global financial markets.
The outbreak was declared a global pandemic on 11 March
2020 by the World Health Organization (WHO) and since then
has resulted in numerous governments and other organisations,
including AngloGold Ashanti, introducing a variety of measures to
curb the spread of the virus. To date, we have taken a number of
proactive steps to protect our employees, our host communities
and business, in line with the company’s values, guidelines and
advice provided by the WHO and within the requirements of the
countries in which we operate. The health and wellbeing of our
employees and our host communities remains a key priority. Cases
of the outbreak have been reported in all of the jurisdictions in
which we operate, and it may lead to a prolonged restriction on the
movement of people and continued requirement for people to self-
isolate or be quarantined.
PAGE 62
A cross-functional team, including operations, technical, finance,
health, community, government relations and other support
disciplines, is helping to guide the response to the crisis. The
company has for some time employed increased screening and
surveillance of employees, stopped non-essential travel, instituted
mandatory quarantine for arriving travelers and increased hygiene
awareness across its operations, in addition to a range of other
measures to mitigate the risks presented by the virus. It has also
worked with local communities to help bolster their responses to
the outbreak. These initiatives have complemented government
responses in each of its operating jurisdictions.
As a precaution against the potential effects of the pandemic on our
ability to secure spares and consumables, our supply chain teams
have proactively placed orders to build increased safety stocks on
critical items at our operations. Specific inventories depend on
the level of risk identified in each region, lead time considerations,
and storage capacity. In general, we are targeting inventories of
three to six months on primary consumables, while recognising we
have the support of strategic partnerships with key suppliers who
themselves are maintaining inventories in the respective regions for
many critical items.
More specifically, the near-term supply chain outlook remains
positive, while mid to long term uncertainty (i.e. 4 to 8 months) is
being actively managed as follows:
• We are pro-actively placing orders to increase safety stocks on
critical consumable items at our operations.
• We have strong supplier relationships and a globally diversified
supply base which minimises the risk of global interruptions.
• Potential supply chain risks are currently limited to base metals
and steel sourced from China impacting grinding media required
at our operations. However, we do not rely solely on Chinese
steel for our grinding media.
• Minimal risks have been identified thus far for the supply of
mining equipment over the next 12 months, however, we are
starting to see lead times increasing.
• We have noted lead times extending for lower value protective
gear and equipment, however, alternative sources for these items
have been identified.
We are proactively managing the gold shipments logistics through
alternative flight routes and air charters due to cancellation of flights
by certain airlines and closure of ports in various jurisdictions in
order to avoid shipment delays of gold doré bars to refineries.
Any self-imposed or government-mandated lockdowns may
disrupt the company’s activities and operations and even lead to
a full or partial temporary suspension of the company’s mining
operations in those jurisdictions. On 21 March 2020, following
the Argentinian government’s decision to impose a nationwide
lockdown (quarantine) until 31 March 2020, including temporary
travel restrictions, border closings and suspension of most
industries, Cerro Vanguardia was required to temporarily suspend
mining activities.
On 23 March 2020, the South African government announced a
21-day nationwide lockdown, effective from midnight on 26 March
2020, resulting in the temporary suspension of mining activities of
the company’s South African operations particularly Mponeng, and
the partial suspension of mining activities at Mine Waste Solutions
(MWS) and Surface Operations.
On 26 March 2020, the State of Goiás, in Brazil, extended a set of
restrictions on the operation of non-essential business to include
mining. These restrictions are set to run through to 4 April 2020.
Serra Grande will temporarily suspend its operations.
The current impact of all of the suspended operations is expected
to be about 30,000oz to 40,000oz, or less than 2% of annual
production. In these countries, the suspension of mining activities
will continue for the period during which the respective restrictions
remain in force.
The rest of AngloGold Ashanti’s mines in its diversified portfolio
of 14 assets in nine countries, continue to operate. For the sites
where production has been suspended, plans for a safe and
smooth ramp-up, and for safely regaining part of the delayed
production, are being developed.
The pandemic, if prolonged, would have a wide range of impacts,
including the direct consequences of the virus on the health of
employees and communities, but also the consequent restrictions
to travel and work put in place by governments to slow its spread.
There would also be indirect consequences, including the reduced
ability to effectively move people, supplies and equipment to
sites. These may cause production interruptions through further
suspensions of mining activities or delays to projects. We are in the
process of designing the necessary contingency plans to mitigate
these risks.
The Company had a good start to the year, and notwithstanding
the suspended production in South Africa and Argentina remains
well on track to meet its annual guidance. Nonetheless, given
the uncertainties with respect to future developments, including
duration, severity and scope of the covid-19 pandemic and the
necessary government responses to limiting its spread, the board
has decided to withdraw its market guidance for 2020 published as
part of its preliminary condensed consolidated financial results on
21 February 2020, at this time.
We will continue to focus on the necessary steps to protect people,
work to meet production targets and secure the longer-term future
of the business during this period of uncertainty.
We are implementing cash conservation measures, including
focused capital prioritisation and reducing non-essential spending
across the business.
The company has drawn down $1.4bn on its US dollar RCF to
cater for the $700m bond redemption due mid-April 2020 and to
provide additional liquidity headroom. After the drawdowns, cash
on hand is about $1.8bn (excluding cash lock-up positions at Kibali
and Sadiola, where AngloGold Ashanti’s combined share totals
about $300m).
Management will continue to take a prudent and proactive
approach to managing the group’s liquidity, which may include
procuring additional credit facilities or debt over and above its
current facilities.
Summary
In summary, priorities for 2020 are:
• Continued focus on sustainability and safety improvements
• Target increased reserve conversion through additional
investment in Ore Reserve Development and Mineral Resource
Conversion
• Aim to successfully complete divestment processes
• Obuasi phase 2 commissioning complete by year-end
• Optimise margins and cash conversion
• Enforce capital discipline in a rising gold price environment
• Proactively manage the emerging risks relating to the Corona
virus pandemic from an operational, liquidity, working capital and
supply chain perspective
• Focus on cash conservation measures including reducing
corporate costs and AISC
• Pursue optimal financing alternatives for the group
Acknowledgement
I wish to record my gratitude to the broader finance team across
the group which includes the financial reporting, tax, treasury,
information management, global supply chain and internal audit
functions. These functions work together seamlessly to ensure
that we proactively manage risk, ensuring that we have robust
financial systems in place to maintain a strong internal control
environment whilst enabling relevant, timely financial reporting that
inform business decisions. Our strong track record of achieving
our financial KPIs is testimony to the strong calibre of our
financial team. I look forward to the year ahead with enthusiasm,
focusing on our strategic objectives and improving returns to our
shareholders.
Christine Ramon
Chief Financial Officer
27 March 2020
PAGE 63
2019 FINA N CI AL REVIEW
Three-year summaries
Summarised group financial results – income statement
US dollar million
Continuing operations
Revenue from product sales
Cost of sales
Gain (loss) on non-hedge derivatives and other commodity contracts
Gross profit
Corporate administration, marketing and other expenses
Exploration and evaluation costs
Impairment, derecognition of assets and profit / loss on disposal
Other expenses
Operating profit
Interest income
Dividends received
Foreign exchange losses
Finance costs and unwinding of obligations
Share of associates and joint ventures' profit
Profit before taxation
Taxation
Profit after taxation from continuing operations
Discontinued operations
Loss from discontinued operations
(Loss) profit for the year
Allocated as follows:
Equity shareholders
- Continuing operations
- Discontinued operations
Non-controlling interests
- Continuing operations
(1) Years 2018 and 2017 have been restated for IFRS 5.
Summarised group financial results – statement of financial position
US dollar million
Assets
Tangible, right of use and intangible assets
Investments
Inventories
Cash and cash equivalents
Assets held for sale
Other assets
Total assets
Equity and liabilities
Total equity
Borrowings and lease liabilities
Provisions
Deferred taxation
Liabilities held for sale
Other liabilities
Total equity and liabilities
PAGE 64
2019
(1) 2018
(1) 2017
US dollar million
2019
(1) 2018
(1) 2017
Summarised group financial results – statement of cash flows
3,525
(2,626)
3,336
(2,584)
3,394
(2,607)
5
904
(82)
(112)
(6)
(83)
621
14
–
(12)
(172)
168
619
(250)
369
(376)
(7)
364
(376)
5
(7)
(2)
750
(76)
(98)
(7)
(79)
490
8
2
(9)
(168)
122
445
(212)
233
(83)
150
216
(83)
17
150
–
787
(64)
(105)
(2)
(150)
466
8
–
(11)
(157)
22
328
(163)
165
(336)
(171)
145
(336)
20
(171)
Cash flows from operating activities
Cash generated from operations
Dividends received from joint ventures
Net taxation paid
Net cash inflow from operating activities from continuing operations
Net cash inflow from discontinued operations
Net cash inflow from operating activities
Cash flows from investing activities
Capital expenditure
Net payments from acquisition and disposal of subsidiaries, associates and joint ventures
Net proceeds (payments) from disposal and acquisition of investments, associate loans, and
acquisition and disposal of tangible assets
Interest received
Increase in cash restricted for use
Other
Net cash outflow from investing activities from continuing operations
Net cash (outflows) inflows from discontinued operations
Cash in subsidiaries sold and transferred to held for sale
Net cash outflow from investing activities
Cash flows from financing activities
Net proceeds (repayments) from borrowings and lease liabilities
Finance costs and lease finance costs paid
Dividends paid
Other
Net cash outflow from financing activities from continuing operations
Net cash outflows from discontinued operations
Net cash outflow from financing activities
Net increase (decrease) in cash and cash equivalents
Translation
Cash and cash equivalents at beginning of year
2019
2018
2017
Cash and cash equivalents at end of year
(1) Years 2018 and 2017 have been restated for IFRS 5.
2,873
1,667
725
456
601
541
6,863
2,676
2,204
797
241
272
673
6,863
3,504
1,675
758
329
–
377
6,643
2,694
2,050
927
315
–
657
6,643
3,880
1,645
783
205
348
358
7,219
2,704
2,268
1,064
363
126
694
7,219
Geita
1,102
77
(221)
958
89
1,047
(703)
(5)
17
14
–
(6)
(683)
(54)
(6)
(743)
3
(137)
(43)
–
(177)
–
(177)
127
–
329
456
931
91
(166)
856
1
857
(575)
(8)
21
5
(6)
2
(561)
226
–
(335)
(214)
(130)
(39)
(10)
(393)
–
(393)
129
(5)
205
329
1,067
6
(160)
913
84
997
(675)
(27)
(8)
7
(8)
–
(711)
(151)
–
(862)
48
(138)
(58)
–
(148)
–
(148)
(13)
3
215
205
PAGE 65
2019 FINA N CI AL REVIEW CONTIN UED
Three-year summaries (continued)
Ratios and statistics
Operating review – gold
Production from continuing operations
Production from continuing and discontinued operations
Gold sold from continuing operations
Gold sold from continuing and discontinued operations
Continuing operations
Closing spot price at year-end
Average gold price received
Total cash costs
All-in sustaining costs
All-in costs
Earnings
Gross profit
Gross margin
Adjusted EBITDA (2)
Interest cover
Asset and debt management
Adjusted net debt
Adjusted net debt to adjusted EBITDA (2)
Continuing and discontinued operations
(Loss) profit attributable to equity shareholders
(Loss) profit attributable to equity shareholders
Headline earnings
Headline earnings
Capital expenditure (3)
Net cash inflow from operating activities
Free cash inflow
Asset and debt management
Equity
Net capital employed
Net asset value – per share
Market capitalisation
Return on net capital employed
Other
Weighted average number of shares
Issued shares at year-end
Exchange rates
Rand/dollar average
Rand/dollar closing
Australian dollar/dollar average
Australian dollar/dollar closing
Brazilian real/dollar average
Brazilian real/dollar closing
Argentinean peso/dollar average
Argentinean peso/dollar closing
Units
2019
(1) 2018
(1) 2017
000oz
000oz
000oz
000oz
$/oz
$/oz
$/oz
$/oz
$/oz
$m
%
$m
2,862
3,281
2,854
3,268
1,517
1,394
746
978
2,913
3,400
2,922
3,412
1,268
1,266
729
942
2,852
3,755
2,869
3,772
1,258
1,257
700
993
1,151
1,034
1,077
904
26
750
23
787
24
1,580
1,388
1,369
times
11
10
10
IMPROVE PORTFOLIO QUALITY
AND MAINTAIN LONG-TERM
OPTIONALITY
$m
times
$m
US cents
$m
US cents
$m
$m
$m
$m
$m
US cents
$m
%
million
million
1,581
1.0
(12)
(3)
379
91
814
1,047
127
2,676
4,422
644
9,278
11
418
415
14.44
13.99
1.44
1.42
3.94
4.03
48.29
59.90
1,659
1.2
2,001
1.5
RELEVANT STRATEGIC OBJECTIVES
133
32
220
53
721
857
67
2,694
4,657
653
5,180
8
417
413
13.25
14.35
1.34
1.42
3.66
3.87
28.14
37.81
(191)
(46)
27
6
953
997
1
2,704
5,031
659
4,178
3
415
410
13.30
12.36
1.30
1.28
3.19
3.31
16.57
18.65
We have a portfolio of assets that must be actively managed to ensure delivery on our strategic
objectives
Maintain long-term
optionality
Improve portfolio quality and
maintain long-term optionality
RELEVANT RISKS
Risk 1: Regulatory changes to mining rights and adverse fiscal changes
Risk 2: Inability to convert Mineral Resource to Ore Reserve
Risk 3: Failure to meet our operational and safety targets
CAPITALS AFFECTED
NATURAL CAPITAL
HUMAN AND
INTELLECTUAL CAPITAL
MANUFACTURED
CAPITAL
FINANCIAL
CAPITAL
SOCIAL AND
RELATIONSHIP CAPITAL
(1) Where appropriate, years 2018 and 2017 have been restated for IFRS 5.
(2) The adjusted EBITDA calculation is based on the formula included in the revolving credit agreements for compliance with the debt covenant formula.
(3)
Includes attributable share of equity-accounted investments.
PAGE 66
PAGE 67
2019 REG IO NA L REVI EWS
Continental Africa
T here are seven mining operations in our Continental Africa region, four of which
are currently in operation – with one of these treating tailings and another oxide
ore. Of these four, AngloGold Ashanti manages three.
Mali
1
2
3
Guinea
Ghana
4
DRC
5
Tanzania
LEGEND
1
Guinea Siguiri (85%)
2 Mali Sadiola (41%)/Morila (40%)
3
4
5
Ghana Iduapriem/Obuasi
DRC Kibali (45%)
Tanzania Geita
Operation
Project
0
2,000km
Our operations in this region are:
In Mali:
In Ghana:
• Iduapriem, an open-pit mine comprising the Iduapriem and
Teberebie properties and the Ajopa South West concession, is
located in the western region of Ghana
• Obuasi, an underground mine in the Ashanti region of
Ghana, was placed on care and maintenance from 2016.
Following the decision to redevelop the mine in 2018, the
redevelopment project began early in 2019. First gold was
poured in December 2019
In the Democratic Republic of the Congo:
• Kibali, one of the largest mines of its kind in Africa, is situated
in north-eastern DRC. The mine, which has both open pit and
underground operations, is co-owned by AngloGold Ashanti
(45%), Barrick (45%), which manages the mine, and Société
Minière de Kilo-Moto (SOKIMO) (10%), a state-owned gold
mining company
In Tanzania:
• Geita is located in the Lake Victoria goldfields, in north-western
Tanzania. The Geita gold deposit is mined as a multiple open-pit
and underground operation
In Guinea:
• Siguiri is a multiple open-pit oxide gold mine in the relatively
remote district of Siguiri, in which AngloGold Ashanti has an
85% interest. The remaining 15% is held in trust for the nation
by the government of Guinea. Siguiri is contractor-mined using
conventional open-pit techniques
• Morila is a joint venture between AngloGold Ashanti and Barrick,
in which each has a 40% interest. The remaining 20% is held
by the government of Mali. The mine completed mining of the
satellite pits in 2019 and will treat material from tailings storage
for remainder of its life
• Sadiola, which is jointly held by AngloGold Ashanti (41%),
IAMGOLD (41%) and the government of Mali (18%) began
operating in 1996. Mining ceased during 2018 and the
operation began the treatment of stockpiles. The sale of the
combined 82% interest in Sadiola to Allied Gold Corporation
for $105m was announced in December 2019. All conditions
precedent are expected to have been fulfilled or waived by the
end of April 2020
In 2019, the Continental Africa region accounted for:
47% of group production
50% of group capital expenditure
A more detailed description and discussion of each of
these operations can be found in the individual .
Operating performance
Production
Production from the Continental Africa region increased to
1.538Moz in 2019 compared to 1.512Moz in 2018. This was
largely due to record production at Kibali and Iduapriem, and an
exceptional performance at Geita.
Gold production at Iduapriem was 8% higher at a record
275,000oz compared to 254,000oz in 2018, primarily a result of
a 14% improvement in plant feed. The grade improvement was
driven by better grade control and access to Cut 1 area in the
Teberebie pit where stripping commenced in 2017. Production was
impacted by a 5% year-on-year decline in tonnage throughput due
to lower plant availability owing to an unstable power supply from
the national grid in the first half of the year and mill downtime in
the last quarter of the year to repair a cracked trunnion journal on
Sag Mill 2. The power supply challenge has since been resolved by
changing over to Volta River Authority and Ghana Grid Company.
Geita produced 604,000oz in 2019, the highest level in 14 years,
compared to 564,000oz in 2018. The operation is successfully
transitioning to predominantly underground operations, with a 10%
increase in recovered grades achieved on the back of additional
flexibility in the blending strategy resulting in improved recovery
rates. Record quarterly production of 208,000oz was achieved in
the last quarter of the year, largely a result of the higher volumes of
tonnes treated and higher-grade material from Star & Comet Cut 3.
Production at Siguiri declined to 213,000oz in 2019. This compares
with production of 242,000oz in 2018. The lower production
was mainly due to lower plant feed grade and recovery which is
related to the ROM 3 crushing plant low performance and material
feed blend to the plant. This was a result of a slower ramp-up
than anticipated following the completion of the carbon-in-leach
(CIL) combination plant integration during the year. By year-end,
quarterly production had improved as the processing challenges
from the treatment of harder rock material through the plant had
been addressed.
At Kibali, production increased to a record of 366,000oz in 2019
(2018: 363,000oz), a result of the ramp up in underground mining,
which partially offset the 9% decrease in tonnes treated due to the
planned reduction in open pit mining. The mine delivered higher
volumes of underground tonnes as the shaft operated in line with
design specifications for the full year. Total volume of underground
ore hoisted was 15% higher year-on-year.
Sadiola continued to process the stockpile and optimise costs,
producing 51,000oz in 2019. This compares to 59,000oz in 2018.
The end of mining activities and the depletion of full grade ore
stockpiles in 2018 led to a higher proportion of marginal grade ore
from the stockpiles being fed to the plant in 2019.
Morila’s production decreased, as planned, to 27,000oz in 2019
compared to 30,000oz in 2018, following the completion of satellite
pit mining at the start of the first half of the year. Production was
also impacted by a 16% decrease in recovered grade as the mine
continued to treat tailings material. This was partially offset by a 9%
increase in tonnes treated compared to the previous year.
Attributable production
(000oz)
2,000
1,500
1,000
500
0
1,435
1,321
1,453
1,512
1,538
2015
2016
2017
2018
2019
Productivity
(oz/TEC)
25
23.01
20
15
10
5
0
20.61
20.70
20.70
19.17
2015
2016
2017
2018
2019
AIFR
(per million hours worked)
0,7
0,6
0,5
0,4
0,3
0,2
0,1
0,0
0.50
0.51
0.49
0.39
0.62
2015
2016
2017
2018
2019
Total cash costs and all-in sustaining costs
(US$/oz)
1000
953
905
827
678
717
720
904
896
773
759
800
600
400
200
0
2015
2016
2017
2018
2019
Total cash costs
All-in sustaining costs (1)
(1) World Gold Council Standard
PAGE 68
PAGE 69
2019 REG IO NA L REVI EWS CONTINU ED
Continental Africa
Costs
All-in sustaining costs for the region decreased to $896/oz
for 2019, a result of lower operating costs at Geita, given the
decline in open pit mining and transition to underground mining,
lower operating costs at Sadiola and Morila as they wind down
operations, as well as cost savings achieved from reagent
optimisation at both Geita and Iduapriem.
The drive for continuous cost improvements through the
Operational Excellence programme is well entrenched across all
sites and disciplines in the region. The focus remains on delivering
systemic and sustainable operational improvements in the
management of the region’s stay-in-business projects.
Capital expenditure
Total capital expenditure for the region increased to $410m in
2019, from $313m in 2018. This was in line with planned inward
investment in growth projects, particularly at Obuasi where $246m
was spent in the redevelopment of the project (see box below).
Underground Ore Reserve development projects continued at
Geita, for Star & Comet and Nyankanga, and at Obuasi. These
projects will provide access to orebodies identified for future
gold extraction. The balance of the capital spend was used for
capitalised exploration and stay-in-business projects to improve
asset reliability across our mines to ensure safe, risk-free mining
and production.
Growth and improvement
Commissioning of the Siguiri CIL combination plant was completed
in 2019 with the mill achieving design throughput consistently.
Optimisation of the circuit is now underway. The prefeasibility study
for the Block 2 Project was completed, and the feasibility study is
expected to be completed by end of the second quarter in 2020.
Evaluation of Siguiri Block 2 and the trucking of oxide material to
the existing process plant to displace marginal ore was completed.
The aim is to improve the mine’s ounce profile from 2021 onwards
and potentially extend its life of mine. Permits for construction of
the new haul road have been received while the mining permit
application is currently in progress.
At Geita, the development of Nyankanga Block 1 Portal began in
December 2019 to accelerate mining in Blocks 1 and 2 following
the delay in permitting for Geita Hill.
Development of Geita’s Star & Comet and Nyankanga underground
operations continued during the year. Approximately 4,568m
of development was completed during the year to access new
areas for stope mining and further exploration. Open pit mining
at Nyankanga will reach the end of its economic life during 2020.
Surface exploration continued at Selous, a satellite pit 2.4km from
Star & Comet, to supplement the underground operation in the
near term.
At Iduapriem waste stripping for Teberebie Cut 1 was completed
and ore was mined from Teberebie Cut 1, Cut 3, Ajopa and
Block 3. Stripping in Cut 2 is expected to start during the first
half of 2020 to deliver ore in 2021 when Cut 1 ore is depleted.
Brownfields drilling continued at the Ajopa pit and open pit mining
has been extended to Cut 3 to supplement ore from the larger
PAGE 70
Teberebie pit. Major brownfield exploration drilling continued at
Blocks 7 and 8, Ajopa and Block 1 to improve the mine’s future
ounce profile and potentially extend the life of mine.
The prefeasibility studies for the new tailings storage facility and
return water dam (RWD) sites were completed. Related feasibility
study is planned to be completed in 2020. Construction sites were
identified and land access compensation and engagement with
the relevant government authorities began for the permitting of
the new facilities. In the second half of 2019 the mine undertook a
feasibility study to consider treatment options to discharge excess
water efficiently on the current greenfield tailings storage facility, the
completion of which is expected in 2020.
At Kibali, the Kalimva-Ikamva prefeasibility study was completed,
delivering another viable opencast project. This will help balance
the mine’s open cast/underground ore ratio and enhance mine
plan flexibility. Drilling at Gorumbwa highlighted future underground
potential and ongoing conversion drilling at KCD is delivering Ore
Reserve replenishment. The mine is well placed to meet its 10-year
production targets and extend them beyond this horizon.
Obuasi redevelopment project
The Obuasi redevelopment project has progressed well
and remains on schedule and within budget.
Phase 1 of the project, which set up the plant to
achieve a daily processing rate of 2,000t of ore, was
completed. Phase 2 which aims to expand plant
capacity to 4,000t a day will continue through 2020.
The civil engineering work is progressing well with most
orders already having been placed.
First blast underground, signalling the start of
underground development, took place on 11 February
2019 and the first stope blast was in October 2019.
This indicated the start of ore production, albeit on a
limited scale, and was followed by the first pour of gold
on 18 December 2019, demonstrating the successful
implementation of the plan to redevelop Obuasi into a
modern, mechanised mining operation, following the
suspension of mining activities five years ago.
Phase 2 work mainly involves construction of new
buildings in the plant, surface infrastructure and tailings
storage facilities, in parallel with underground materials
handling systems and shaft refurbishment, paste-
fill plant and new underground pumping and piping
systems. Phase 2 operational readiness includes
ramping up the mining operation including the start
of mining in Block 8 lower, commissioning the KRS
shaft, GCVS vent shaft, paste fill plant and installing
the underground paste systems and commensurate
recruitment and training.
Sustainability performance
More detailed information on the sustainable development
activities at each of these operations can be found in the
individual .
In the Continental Africa region, our principal sustainable
development activities relate to the following material issues:
Employee safety
There were no fatalities in the Continental Africa region in 2019,
with the last fatal injury having been recorded in October 2015.
The all injury frequency rate (AIFR) for the year was 0.62 injuries
per million hours worked across the region. The region saw a
regression from the previous year, primarily due to an increased
number of injuries associated with the redevelopment project
currently underway at Obuasi in Ghana.
value chains to support local supplier development. During
the year, a multi-stakeholder workshop led to completion of
a local business development framework and guidelines for
sustainable development across the Continental Africa region.
In Ghana, legislation on local procurement is in place and in the
Obuasi redevelopment project we are using local suppliers and
contractors.
AngloGold Ashanti has helped facilitate the development of a
satellite Obuasi campus for Ghana’s renowned Kwame Nkrumah
University of Science and Technology (KNUST), which is
headquartered in the city of Kumasi. See the case study Kwame
Nkrumah University of Science and Technology develops an Obuasi
campus in the .
At Obuasi, a social management plan has been designed and is
being implemented for the benefit of the community, and a trust
fund composed of representatives from across the community, the
Obuasi Community Trust Fund, was established.
Employee and community health
Responsible environmental stewardship
We continued with constant monitoring and control of workplace
exposures to dust, noise and lead, which are important
occupational health focus areas. One case of occupational disease
was diagnosed in 2019, a noise-induced hearing loss case at
Geita. Necessary medical support was provided and workplace
controls were strengthened to prevent adverse effects on other
employees, including contractors. In particular, occupational health
hazard programmes designed to deal with occupational exposures
such as airborne pollutants and noise are being introduced at
Obuasi in Ghana and Geita in Tanzania, as it moves underground.
Non-occupational lifestyle and community health risks such as
malaria, which is endemic in our African operations, as well as
the persistent Ebola virus in the DRC also present challenges to
business productivity and continuity.
In Ghana, malaria control activities continued in collaboration with
the Ghana Department of Health as well as The Global Fund.
Contributing to resilient self-sustaining
communities
Work within communities continued in the region. Each operation
has a forward-looking community engagement strategy that
identifies potential areas of concern for the respective communities.
We have local economic development programmes, which are
developed and run in partnership with local governments and host
communities.
These programmes are aimed at contributing towards economic
growth, income-generating opportunities, creation of employment,
and nurturing sustainable livelihoods beyond the life of mine.
Implementation of our local procurement policy, approved in
2018, continued in 2019. This policy is central to building local
There was one reportable environmental incident in the region
in 2019, at Siguiri where cyanide-bearing solution draining into
a temporary spillage pond reached the external spillage pond,
which unfortunately caused the deaths of a cow and birds which
drank from the pond. Immediate action was taken to isolate and
detoxify water in the external pond and a full investigation initiated
to understand and address the cause of the release. Remedial
action was taken to prevent similar incidents in future.
All operational mine sites in the region have been certified to the
new ISO 14001:2015 Environmental Management System. Their
first surveillance audits were successfully conducted in 2019.
Obuasi’s certification remained suspended for 2019 as the mine
was being recommissioned.
Geita and Sadiola submitted mine closure plans to their
respective governments for approval, while Siguiri and Iduapriem
are expected to update theirs during 2020. Obuasi continued to
implement the legacy closure works as agreed in the Reclamation
Security Agreement signed with the Ghana Government. Also see
for reclamation work that has begun at Obuasi.
Employee, community and asset security
In all countries in which we operate, threat and risk assessments
are conducted to determine which security resources are
required. In Mali, Tanzania, Ghana and Guinea, risk assessments
categorise threats as high and require the involvement of
state police and/or military units (public security forces) on a
near-permanent basis. Our goal is to be proactive, constantly
assessing the risks and, where we see potential threats, we
develop and implement mitigating strategies to address these.
PAGE 71
2019
REG IO NA L REVI EWS CONTINU ED
Continental Africa
REGIONAL REVI EWS
South Africa
Artisanal and small-scale mining
Major mining markets across Africa faced growing risks from
artisanal and small-scale mining (ASM) and illegal mining activities
in 2019, exacerbated by the stronger gold price and deteriorating
socio-economic conditions. We continued to engage with
governments and other stakeholders on our ASM formalisation
programmes.
Countries in the region affected by ASM are Tanzania, Ghana, Mali
and Guinea. Our two-pronged approach to legal ASM includes
providing direct support in formalising ASM and helping to establish
alternative livelihoods by promoting local enterprise development.
We also work together with country law enforcement agencies in
protecting our mining tenements.
Respecting human rights
a human rights violation, despite the complex human rights
challenges in our operating landscapes. However, proactive
management of ASM, illegal mining and general criminality remains
a focal point for the security discipline in the region.
Talent management, skills development and
employee relations
Localisation of talent is a feature of our human resources practice
in the region. Good progress is being made in building talent and
succession pools. In 2019, 16 key positions in the region were
filled by local nationals, despite increases in expatriate numbers
due to the Obuasi redevelopment and the move to underground
mining currently underway at Geita. See
in this report.
Navigating regulatory and political
uncertainty and risk
No human rights violations were recorded and there were no
incidents reported during the year. Our human rights performance
continues to improve, and we have recorded two years without
Increasing pressure from host governments and communities on
mining companies to overhaul local procurement processes and
systems remains a key challenge to the industry. We are committed
to implementing our localisation policies and strategies.
Iduapriem
PAGE 72
A fter extensive restructuring of this region, which took place between 2016 and 2018, at December
2019, we had two operations in the South Africa. Post-year end, on 12 Februar y 2020, it was announced
that agreement had been reached to sell all our remaining South African producing assets and related
liabilities to Harmony. The transaction, which is subject to several conditions precedent, is expected to be
concluded on or about 30 June 2020.
Gauteng
North West
Carletonville
2
Klerksdorp
1
Swaziland
Bloemfontein
Lesotho
Durban
LEGEND
1 Mponeng (West Wits)
2
Surface Operations (Includes MWS and
other surface treatment facilities)
Operation
Cape Town
Port Elizabeth
East London
0
400km
An agreement and sale was announced post year end for Mponeng
and the Surface Operations in South Africa.
Our operations in this region are:
• Mponeng, the world’s deepest gold mine, is located in the West
Wits mining district south-west of Johannesburg, on the border
between Gauteng and North West Province
• Surface Operations comprises surface facilities in the West
Wits and Vaal River areas, which process and extract gold from
marginal ore dumps and TSFs. Surface Operations also includes
Mine Waste Solutions (MWS)
In 2019, the South Africa region accounted for:
13% of group production
8% of group capital expenditure
Operating performance
Production
The South Africa region produced 419,000oz at a total cash cost
of $981/oz in 2019, 14% lower than the previous year, largely
due to limitations in face length availability which impacted grades
following high seismicity at Mponeng. Production was also
impacted by intermittent electricity due to Eskom load shedding
and seismicity related safety stoppages.
Mponeng mine produced 243,000oz at a total cash cost of
$976/oz in 2019 compared to 265,000oz at a total cash cost of
$977/oz in 2018. The 2019 year marked the first full year in which
new shift arrangements at Mponeng were implemented. The new
shift arrangement represents a paradigm shift in the evolution of
the mine and this has resulted in significant improvements in both
A more detailed description and discussion of each of
these operations can be found in the individual .
PAGE 73
2019
REG ION AL REVI EWS CONTINU ED
South Africa
safety and productivity. Employees have responded positively to
the new schedule, resulting in a 44% year-on-year improved safety
performance (AIFR) and a 11% uplift in productivity.
Production of 176,000oz at Surface Operations improved for the
year driven by a 3% increase in production at MWS, from improved
recoveries with the introduction of the Aachen Shear reactor and
other initiatives aimed at enhancing efficiencies.
The main drivers for the improved delivery at the Surface
Operations were primarily due to:
• Improved throughput from better operational performance
delivery by the contractor; stabilised duty cycle of the
comminution circuits
• A change in strategy to process Mponeng marginal ore dumps
(MOD) through the Savuka Gold Plant
• General metallurgical process efficiencies
• Implementation of grid sampling and grade profiling strategy
The impact of inclement weather remained significant during 2019.
A remote reclamation project is currently underway with the aim of
reducing inclement weather disruptions to production. The current
situation at Eskom also remains a concern as MWS is not able to
fully function on emergency power and therefore any interruptions
caused by Eskom load shedding directly impact production activities.
Costs
Costs benefitted from operating efficiencies as well as a weaker
rand/dollar exchange rate, resulting in a 5% year-on-year decrease
in total cash cost. This was partially offset by lower gold output
from the region. Cost reduction initiatives aimed at calibrating both
on- and off-mine cost structures progressed well through the year
in line with our focus on Operational Excellence.
All-in-sustaining costs for the region were $1,132/oz, down 4%
despite the headwinds related to production and inflationary
pressures. The region successfully delivered on its targeted cost
savings initiatives for 2019.
Through our Operational Excellence initiatives, cost and capital
management remained a key priority as we continue to maintain
asset integrity and safety performance. Project initiatives include a
wide array of activities aimed at improving metallurgical recoveries
and throughput and cost saving initiatives.
Operational Excellence began at Mponeng in 2019 and included
working to increase face length availabilities, improve recovery
and mine call factors, reduce power consumption, and optimise
capital spend.
Capital expenditure
Total capital expenditure for the region was $57m, compared to
$73m in 2018. This was mainly spent on the completion of the
Mponeng Phase 1 project, Ore Reserve development (ORD) work,
as well as the Mponeng life-of-mine extension feasibility study.
Sustaining capital expenditure was spent on a variety of stay-in-
business projects and the rehabilitation work related to the Carbon
Leader project.
PAGE 74
1,000
800
600
400
200
0
5
4
3
2
1
0
Productivity
(oz/TEC)
6
2015
2016
2017
2018
2019
3.74
3.56
3.57
5.10
4.45
AIFR
(per million hours worked)
15
12
9
6
3
0
12.02
12.68
10.81
10.25
6.60
2015
2016
2017
2018
2019
Total cash costs and all-in sustaining costs (1)
(US$/oz)
1500
1200
1,088
1,081
1,084
1,251
881
896
1,182
1,032
1,132
981
900
600
300
0
2015
2016
2017
2018
2019
Total cash costs
All-in sustaining costs (2)
(1) Years 2015 and 2016 have not been restated for IFRS 5
(2) World Gold Council Standard for AISC
Attributable production
(000oz)
1,200
1,004
967
903
Sustainability performance
More detailed information on the sustainable development activities
at each of these operations can be found in the individual .
In the South Africa region, our principal sustainable development
activities relate to the following material issues:
487
419
Employee safety
2015
2016
2017
2018
2019
Employee and community health
In memoriam
Post year-end we regrettably lost four colleagues in two
separate fatal incidents at Mponeng.
On 16 March 2020, we lost Thabo Rakometsi in a
tragic accident during an underground horizontal
transport incident. This tragedy followed an accident
which occurred on 5 March 2020 where three of our
colleagues – Lucas Maapea, Xolani Ngqwemese, and
Mokhethea Johannes Radebe – were fatally injured in a
seismic related incident caused by a large fall of ground,
roughly 3.6km below surface.
We extend our sincere condolences to the families,
colleagues, friends and communities of the deceased.
Koekemoerspruit crossing. Further details of these incidents are
provided in the Mponeng and Surface Operations’ .
Recovery of the impacted section of the Koekemoerspruit will be
assessed through in-stream bio-monitoring by an independent
specialist, following clean-up of the watercourse and adjacent
surface areas impacted by the spill.
At our West Wits operations, we continue to manage acid mine
drainage (AMD) that flows from disused neighbouring mines. We
have carefully managed the risk of water spilling from the West Wits
water circuit by balancing our site water inventories. This somewhat
delicate balance has thus far been achieved by accelerated
water evaporation technologies and by using the water for the
reprocessing of old tailings storage facilities once its acidity has
been neutralised.
There were no fatalities in the South Africa region in 2019, the
region’s safest year on record. The AIFR was 6.60 per million hours
worked for the year, a 36% improvement year-on-year. Safety
interventions have included changes in planning and information
systems, the introduction of a new way of mining, and a change in
shift arrangements as of November 2018.
To create additional safety awareness during the festive season,
a campaign named Khumbul’ekhaya, an Nguni word meaning
‘remember home’, was launched in the last quarter of 2019 and
rolled over into 2020 to encourage mineworkers to return home
healthy and safe every day. Khumbul’ekhaya was developed by
South African mining companies to drive and sustain the local gold
mining industry’s pursuit of Zero Harm.
The proposed sale of our South African assets will alter the health
profile of the Company as currently most of our occupational
disease issues, such as silicosis (see the case study, Court
approves settlement of silicosis and TB class action in the )
and noise-induced hearing loss relate to our South African mines.
There were 12 cases in 2019 significantly down from 35 in 2018.
Contributing to resilient self-sustaining
communities
Artisanal and small-scale mining
Socio-economic development (SED) initiatives are vitally
important if we are to ensure self-sustaining communities.
In South Africa, support for SED initiatives, which includes
promoting alternative livelihoods, continued with variable
outcomes. The Masakhisane Enterprise Development Fund,
which provides interest-free loans, continued to support local
business development projects disbursing a total of $1.04
million in 2019. Following consultation, a new social and labour
plan for the 2020-2024 period was submitted to the Department
of Mineral Resources and Energy for approval.
Illegal and ASM mining activities continued to pose a significant
challenge to our operations throughout 2019 in South Africa where
gold producers continued to face an escalation in violent crime-
related activities as a result of large armed criminal groups and
illegal miners intruding into and invading mining areas. As a result,
the region’s Mines Crime Combatting Forum (MCCF) eight-pillar
initiative was launched to address general criminality resulting from
the increase of illegal mining activities.
Navigating regulatory and political
uncertainty and risk
Responsible environmental stewardship
There were two reportable environmental incidents in the region in
2019. In the first incident, which occurred on 2 September 2019, the
residue tanks at Savuka’s gold plant overflowed, ultimately affecting
the Wonderfonteinspruit. Immediate response measures were put
in place to stop, monitor and mitigate the effects of the spill. The
second occurred on 20 September when a pipeline conveying
tailings from the MWS plant to the Kareerand TSF, failed near the
In South Africa, the industry, through the Minerals Council, is
challenging aspects of the September 2018 Mining Charter III. The
main issue is non-recognition of the continuing consequences of
previous black empowerment transactions in relation to mining
right transfers and renewals. While agreement through engagement
is the preferred approach, the Minerals Council lodged a legal
application for a review of that and two other aspects of the charter
in March 2019. A court date is expected during 2020.
PAGE 75
2019
REG IO NA L REVI EWS
Americas
O ur Americas region includes three operations, featuring both open
pit and underground mining – one in Argentina and two in Brazil
– and two advanced greenfields projects in Colombia.
4
LEGEND
1
2
3
4
Argentina
Cerro Vanguardia (92.5%)
Brazil
Serra Grande
AGA Mineração
Colombia
Gramalote (51%)
La Colosa
Quebradona
Operation
Project
0
400km
2
3
1
Projects
Operations
0
400km
Our operations and projects in this region are:
In Argentina:
• Cerro Vanguardia, in which AngloGold Ashanti has a 92.5%
stake and Fomicruz, a state company operating in the province
of Santa Cruz, the remaining 7.5%. The operation, located in the
province of Santa Cruz, operates multiple small open pits with
high stripping ratios and multiple narrow-vein underground mines
that produces gold and silver as a by-product. The sale process
for this asset is at an advanced stage and a decision is due shortly
In Brazil:
• AngloGold Ashanti Córrego do Sítio Mineração (AGA
Mineração) in the state of Minas Gerais, which comprises the
Cuiabá complex, the Córrego do Sítio mining operation and the
Cuiabá and Queiroz gold plants
• Serra Grande, in the state of Goiás about 5km from the city of
Crixás, comprises three mechanised underground mines and an
open pit
In Colombia:
• Quebradona is situated in the Middle Cauca region of Colombia,
in the Department of Antioquia, 60km south-west of Medellin.
Five main targets have been identified, of which Nuevo Chaquiro
is the most advanced
See for further information on
these projects.
In 2019, the Americas region accounted for
21% of group production
24% of group capital expenditure
Operating performance
Production
• Gramalote, a joint venture between AngloGold Ashanti (51%)
and B2Gold (49%), is located near the towns of Providencia and
San Jose del Nus within the municipality of San Roque, north-
west of the Department of Antioquia. It is approximately 124km
north-east of Medellin, the regional capital of the Antioquia
Department. B2Gold took over management of the project
on 1 January 2020
Total production for the Americas region in 2019 declined to
710,000oz compared with 776,000oz in 2018, a result of production
declines at all three operations.
At AGA Mineração, performance at Cuiabá was impacted by poor
ground conditions where, to ensure safe production, the rate of
mining was slowed while a new surface support regime and mine
A more detailed description and discussion of each of these operations can be found in the individual .
sequencing plan were introduced. Early indicators show these new
controls to be successful and condition monitoring will be ongoing as
mining progresses in the deeper, higher grade areas.
At the Córrego do Sítio complex, geological model changes, open
pit licence delays for the Rosalino orebody, geotechnical issues and
unexpected heavy rains in the last two months of the year delayed the
development and mining of the planned open pit mining areas.
At Serra Grande, the slightly lower production level in 2019 was due
to lower feed grades, particularly in the second half of the year, and
reduced drilling productivity and fleet availability. This was partially
offset by higher tonnage treated following the Mina III pushback.
Cerro Vanguardia’s production was negatively affected in the second
half of the year by the planned lower grades mined and a 42% decline
year-on-year in silver production. This was partially compensated for
by a higher average silver price.
Costs
The total cash cost for the region for the year was $736/oz in 2019
(2018: $624/oz) and the AISC $1,032/oz (2018: $855/oz). The
increased costs were largely due to the decline in ounces sold,
reduced silver by-product revenue from Cerro Vanguardia and
inflation. The inflationary pressures which affected both Argentina
and Brazil, included increases in wages, operational materials, this
coupled with impact of changes in the estimation of rehabilitation
provisions for the Brazilian operations as required by the new
legislation. This was slightly offset by weaker currencies.
Capital expenditure
Total capital expenditure for the region was $195m, compared to
$176m in 2018, with the increase largely driven by higher spend
in Colombia on feasibility study work at Quebradona. Sustaining
capital expenditure was spent mainly on Ore Reserve development
at underground operations in Brazil and Argentina. At Cerro
Vanguardia, capital expenditure for the year was spent primarily
on development work and larger trucks to increase hauling and
loading capacity, and to ultimately improve productivity.
Serra Grande is our only operation in Brazil with an upstream TSF.
The current dam, which has a reinforced wall, will be converted to
dry stacking as per the mine plan. Following the implementation of
new legislation, the process will be accelerated. Decommissioning
is expected to begin in September 2021 to ensure we comply with
the revised legislation.
Growth and improvement
In Brazil, the strategy is to enhance mining flexibility and
predictability by investing in Ore Reserve development, along with
Mineral Resource and Ore Reserve conversions. More brownfields
exploration is planned to increase the Ore Reserve and related
confidence levels. This work will be vital in the upcoming year.
During 2019, Serra Grande transitioned to full owner development
and development metres achieved increased by 10% compared
to 2018 levels. At Cuiabá, a new international contractor in the
Brazilian market was signed on in March 2019 and has to date
delivered a 28% year-on-year increase in metres developed.
Attributable production
(000oz)
1,000
948
820
840
776
710
800
600
400
200
0
1000
800
600
400
200
0
2015
2016
2017
2018
2019
Productivity
(oz/TEC)
20
15
10
5
0
15.05
13.98
13.34
12.86
11.39
2015
2016
2017
2018
2019
AIFR
(per million hours worked)
6
5
4
3
2
1
0
5.61
3.96
3.97
3.84
3.29
2015
2016
2017
2018
2019
Total cash costs and all-in sustaining costs
(US$/oz)
1200
881
943
799
576
578
638
624
1,032
855
736
2015
2016
2017
2018
2019
Total cash costs
All-in sustaining costs (1)
(1) World Gold Council Standard for AISC
PAGE 76
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2019 REG IO NA L REVI EWS CONTINU ED
Americas
Cuiabá is also investigating the potential of new orebodies and a
plan for deepening the mine.
Employee safety
At Córrego do Sítio (CdS) the focus is to re-open the CdS II
underground mine. Along with a focus on Mineral Resource
conversion and stabilising production, CdS will invest in looking at
the potential of CdS III and the Rosalino open-pit expansion.
At Serra Grande, Palmeiras South underground mine is expected
to commence delivering ounces in the first half in 2020.
In Argentina, Cerro Vanguardia, which has been in operation for over
20 years, is expected to see a reduction in grades from the open pit
mines and lower contributions from silver compared to the previous
years’ levels. To sustain the production plan, exploration will focus on
converting new and already existing blue sky tangible and Inferred
to Indicated Mineral Resource around current pits and underground
operations in the main production zone. The exploration plan
includes 25,000m of diamond drilling hole campaign, channels,
trenches, geophysics surveys, among others.
Sustainability performance
In the Americas region, our principal sustainable development
activities relate to the following material issues:
There were no fatalities in the Americas region in 2019. Safety
improved overall with an AIFR of 3.84 recorded for the year. A
Safe Production Programme, based on the Dupont Sustainable
Solutions safety regime, is being trialled at Cuiabá, following the
fatality that occurred in 2018 in Brazil. The programme aims to
eliminate fatalities, transform the way we work, and create a
sustainable organisational culture and work process. See the case
study: Cuiabá Safety Production Programme, in the .
The programme is currently being rolled out and will be completed
by the end of 2020. Once completed, the programme will be
implemented at all our Brazilian operations.
Contributing to resilient self-sustaining
communities
In line with our values to leave communities better off for our having
been there, in Brazil, as part of our corporate social responsibility,
we have established a sustainable partnership programme that
Serra Grande
PAGE 78
promotes local businesses (see the case study: Brazil’s Sustainable
Partnerships Programme in the ).
Community-related work included the voluntary resettlement of
the Santos Reis community adjacent to Serra Grande, progressed
notably during the year with 41 of 51 families settled in new homes
in the nearby town of Crixás. The resettlement will allow work to
begin on the open pit expansion
Responsible environmental stewardship
In Brazil, two unrelated but catastrophic collapses of TSFs (at
another company) in recent years have heavily influenced the shift
in global environmental management regulations, particularly those
relevant to the construction, management and regulation of TSFs,
which will inevitably lead to increased compliance and operational
costs. AngloGold Ashanti's Brazilian operations continued to
accelerate the transition towards compliance with the requirements
of new local laws and regulations. See the case study: Tailings
storage facility management in Brazil in the .
Employee, community and asset security
In all countries in which AngloGold Ashanti operates, threat and risk
assessments are conducted to determine which security resources
are required. In Colombia, risk assessments categorise threats as
high and require the involvement of state police and/or military units
(public security forces) on a near-permanent basis.
Artisanal and small-scale mining
Illegal and artisanal and small-scale mining (ASM) activities continued
to pose a significant challenge to our activities in Colombia. We seek
harmonious co-existence with legal ASMs. Our two-pronged approach
involves providing direct support for the formalisation of ASM and
promoting local enterprise development, which contributes to creating
alternative livelihoods, and working with the country’s law enforcement
agencies to protect our mining tenements. See case study: Gramalote
partners with ASM to formalise mining in the
Navigating regulatory and political
uncertainty and risk
South America experienced a wave of political volatility, fuelled by
a long-term decline in living standards and exacerbated by global
trends of high economic inequality. The rise of anti-establishment
politics continued to swing between left- and right-wing
governments, creating some political turbulence in the region. We
will continue to engage with the relevant government and external
stakeholders to mitigate this risk.
Cerro Vanguardia
PAGE 79
2019
REG IO NA L REVI EWS CONTINU ED
Australia
A ngloGold Ashanti has two operations in its Australia region, Sunrise Dam and
Tropicana, both of which are in the north-eastern goldfields of the state of
Western Australia.
Darwin
Operation
0
1,000km
LEGEND
1
2
Sunrise Dam
Tropicana (70%)
Western
Australia
1
2
Kalgoorlie
Perth
Brisbane
Adelaide
Sydney
Canberra
Melbourne
Our operations in this region are:
In Australia:
Operating performance
Production
• Sunrise Dam, wholly-owned by AngloGold Ashanti, is located
220km north-east of Kalgoorlie and 55km south of Laverton.
Underground mining, carried out by a contract mining
company, is now the primary source of ore, following the
cessation of mining in the open pit in 2014.
• Tropicana, a joint venture in which AngloGold Ashanti has a
70% holding and which it manages with 30% held by IGO Ltd, is
located 200km east of Sunrise Dam and 330km east-northeast
of Kalgoorlie. The operation is a large open pit operation with
mining carried out by a contractor.
The Australia region produced 614,000oz in 2019 compared to
625,000oz 2018. The 2% drop in year-on-year production was
largely the result of lower underground mined volumes and grades at
Sunrise Dam.
Sunrise Dam experienced operational challenges in the middle of
the year with limited stope flexibility and paste fill delays, which
resulted in lower underground volumes and grades. However,
mining flexibility improved in the fourth quarter of 2019 as
larger stopes came online, resulting in a record production from
underground for the fourth quarter.
In 2019, the Australia region accounted for
19% of group production
18% of group capital expenditure
A more detailed description and discussion of each of
these operations can be found in the individual .
A substantial exploration programme is underway to increase Mineral
Resource confidence, grow the underground Ore Reserve and
support development of additional mining areas in the long term.
Critical for success at Sunrise Dam is increasing flexibility to ensure
consistently high underground tonnages are available to displace
lower-grade surface stockpiles. Strategic drill platforms have been
established to facilitate systematic exploration of the down plunge
extents of the Vogue mineralised system, while also testing areas to
the north and south that could generate additional work areas. The
objective of the drilling is to provide data to facilitate Ore Reserve
conversion and increase confidence and reliability in the two- to five-
year planning horizon.
At Tropicana, production at 360,000oz for the year, was 7% higher
year-on-year. Higher mill throughput, which set new records in
December 2019, offset lower feed grades in the second half of the
year and contributed to the increase in gold production. Annual
tonnes mined also broke site records in 2019. The Tropicana
open pit was completed during the year and mining continued in
the Havana South, Havana and Boston Shaker pits. In 2020, it is
planned that open pit mining will be focused on the Havana pit.
Costs
The region’s AISC was $990/oz in 2019 compared to $1,038/oz for
2018. Despite the 2% lower production delivered in the region for
the year, a strong focus on operational excellence coupled with a
weaker exchange rate contributed to a 4% drop in total cash costs
and a 5% drop in AISC compared to 2018. Tropicana’s total cash
costs declined due to higher volumes, and improved efficiencies
partially offset by unfavourable grades, royalties and inflation while
total cash costs at Sunrise Dam were negatively impacted by lower
efficiencies, lower grade and inflation.
Operational excellence work included a successful trial of
autonomous open-pit blast hole drilling, which indicated significant
productivity gains could be achieved by converting all six drill rigs
to autonomous operation. Autonomous operation can improve drill
use by enabling their continued operation within the exclusion zone
during blasting, so extending drill bit life and reducing the number
of operators needed.
Capital expenditure
Total capital spend for the region was $149m in 2019 compared
to $156m in 2018. Capital expenditure at Tropicana increased
by $30m predominately due to the start of the Boston Shaker
underground growth project at $21m. An increase in waste
stripping capital expenditure due to the scheduling of open pit
cutbacks was partially offset by a reduction in stay-in-business
capital. Capital expenditure at Sunrise Dam reduced by $36m
due to lower Ore Reserve development and stay-in-business
capital expenditure. Several key infrastructure projects, such as
the expansion of the tailings storage facility and the upgrade to
the ventilation system were completed in 2018 resulting in a $25m
year-on-year reduction in stay-in-business capital expenditure when
compared to 2019.
Growth and improvement
At Sunrise Dam, the underground exploration programme initiated
in the second half of 2019 is expected to take two years. The
programme is designed to increase Mineral Resource confidence,
grow the underground Ore Reserve and support development of
additional mining areas in the long term. By the end of the year six
underground diamond drill rigs were in operation testing targets
including the southern strike extensions of the Midway Shear
Steeps (MSS) and Elle and areas to the south of the current Vogue
Indicated Mineral Resource. Surface diamond drilling will target
southern extensions of Vogue.
Drilling results returned in 2019 identified extensions of Vogue
mineralisation over an approximate 180m strike length;
southern extensions to the Midway Shear Steeps ore domains,
approximately 190m south of the current Indicated Mineral
560
Attributable production
(000oz)
800
700
600
500
400
300
200
100
0
520
2015
2016
559
625
614
2017
2018
2019
Productivity
(oz/TEC)
60
55.84
46.81
47.87
49.55
44.85
2015
2016
2017
2018
2019
AIFR
(per million hours worked)
10
8.56
9.49
8.53
9.14
7.33
2015
2016
2017
2018
2019
Total cash costs and all-in sustaining costs
(US$/oz)
1,200
1,082
1,062
1,000
875
702
793
743
762
730
1,038
990
2015
2016
2017
2018
2019
Total cash costs
All-in sustaining costs (1)
(1) World Gold Council Standard
50
40
30
20
10
0
8
6
4
2
0
800
600
400
200
0
PAGE 80
PAGE 81
2019 REG IO NA L REVI EWS CONTINU ED
Australia
Resource; and potential repetition of the Midway Sheer Steeps
ore domains, approximately 100m east of the current Indicated
Mineral Resource. Drilling also intersected mineralisation 500m to
the south down plunge of the Mineral Resource, suggesting the
continuation of the Vogue orebody.
Development of the Boston Shaker underground mine at
Tropicana began in May 2019 and at year-end the project was
on track to deliver high-grade ore in mid-2020 as planned. The
decision to go ahead with the project was announced in March
2019 and, after a feasibility study confirmed that underground
mining was technically and financially viable, demonstrating robust
economics with an anticipated internal rate of return of 39% for a
capital investment of $79.3 million (100%).
Boston Shaker is expected to contribute higher-grade mill feed,
resulting in an improved gold production profile and enhanced
cash flow, during 2021-2023 when the mine plan includes periods
of higher waste stripping in the Havana open pit.
The feasibility study was based on the mining of 6.58 million tonnes,
grading 3.84g/t, assuming the systematic conversion of Mineral
Resource to Ore Reserve over the life of the mine. The average
underground mining rate will be approximately 1.1Mtpa (including
development) over an eight-year mine life to 2026 to produce a
total of 732,000oz. Mining methods will comprise conventional
mechanised mining and underhand sub-level open stoping.
The two raises bore holes required for ventilation and emergency
egress were tracking ahead of schedule by year end, and
underground development of 1,640m was ahead of plan.
Underground reverse circulation grade control drilling began in
October. Recruitment of the underground workforce is in line with
plan and the underground operation remains on track to deliver
first gold in the second half of 2020. Operational excellence work
is focused on remote bogging, the mechanical operator-controlled
digging of ore from surface, and on optimising level spacing and
extraction ratios.
Sustainability performance
Employee safety
Safety performance improved for the Australia region in 2019,
continuing a positive trend since the commissioning of Tropicana
in 2013. At Tropicana, the site ended the year with a record safety
performance in terms of the AIFR and the lost-time injury frequency
rate (LTIFR), achieving 14 months without a lost-time injury. At
Sunrise Dam, the AIFR and LTIFR both increased marginally from
2018, although the severity of injuries was minor.
in mid-2018, there has been a 51% reduction in fatigue alarms
among haul truck operators. In 2019, this project was a finalist
in the Work Health and Safety Excellence Awards, organised
by the government of Western Australia’s Department of Mines,
Industry Regulation and Safety. See case study entitled, Tropicana
implements programme to address sleep disorders in the .
Contributing to resilient self-sustaining
communities
AngloGold Ashanti is actively involved in communities across the
Western Australian goldfields, from Laverton to Kalgoorlie-Boulder
and beyond, including remote Aboriginal communities such as
Tjuntjuntjara. Our community projects support education, youth,
community development and health programmes and local training.
We also offer employment and business participation opportunities.
During 2019, AngloGold Ashanti Australia awarded a contract
for ore rehandling and crusher feed at Sunrise Dam to Aboriginal
contractor Carey Mining Pty Ltd, continuing a business partnership
that began more than 20 years ago. Carey Mining employs 57
people on the Sunrise Dam contract.
Responsible environmental stewardship
There were no reportable incidents in 2019 at either Australian
operation and both sites met all their regulatory reporting
obligations during 2019.
In the first half of the year, all necessary approvals were received
to enable development of the Boston Shaker underground mine
at Tropicana to proceed on schedule. During the year, the Great
Victoria Desert (GVD) Biodiversity Trust, established in 2013 by the
Tropicana joint venture as part of the biodiversity offset approach
for the Tropicana operation, had a range of projects underway
in 2019. Tropicana is on the GVD’s western edge and the trust
supports research and on-the-ground conservation in two of the
desert’s six ecological sub-regions.
The trust funded the first Sandhill Dunnart Research and Adaptive
Management Plan for the GVD, which incorporates traditional
owner land management expertise. This work identified two new
Sandhill Dunnart sites, recorded 52 more fauna species and
increased total bird and mammal species records for the region
to 172. The Sandhill Dunnart, a small carnivorous marsupial, is an
endangered species. The trust supports activities to capture and
apply traditional ecological knowledge and facilitate indigenous
land management participation. Projects include research to
increase fire-management capability and introduce traditional fire
management practices, as well as traditional owner ranger training.
Employee and community health
Navigating regulatory and political
uncertainty and risk
At Tropicana, a programme was initiated to improve health,
safety and productivity outcomes by identifying and supporting
people with sleep disorders. Since the start of the programme
AngloGold Ashanti drafted a whistle-blowing policy for the region,
which is also aligned with group policy, to address specific
requirements of the Australian Whistle-blowing Act.
Sunrise Dam
PAGE 82
PAGE 83
2019
TH R EE - Y EAR STATISTICS BY OPERATION
Operational, financial and sustainability statistics
Production metrics
Continental Africa
DRC
Kibali (45%)
Ghana
Iduapriem
Obuasi (1)
Guinea
Siguiri (85%)
Mali
Morila (40%)
Sadiola (41%)
Tanzania
Geita
Americas
Argentina
Cerro Vanguardia (92.5%)
Brazil
AGA Mineração
Serra Grande
Australia
Australia
Sunrise Dam
Tropicana (70%)
Continuing operations – total (2)
Discontinued operations
South Africa (2)
Vaal River
Kopanang (3)
Moab Khotsong (3)
West Wits
Mponeng
TauTona (including Savuka) (4)
Surface Operations
Surface Operations (5)
AngloGold Ashanti – total (6)
Attributable tonnes treated/milled (Mt)
2019
26.6
2018
27.3
2017
28.0
3.4
5.1
–
8.8
2.1
2.0
5.2
7.2
2.7
3.2
1.3
10.2
4.1
6.1
44.0
35.1
1.3
33.8
79.1
3.7
5.3
–
8.9
2.0
2.1
5.3
6.8
2.7
3.0
1.1
9.5
4.0
5.5
43.6
34.9
0.1
0.1
1.2
33.5
78.5
3.4
5.1
–
9.9
2.2
2.1
5.4
7.5
3.1
3.0
1.4
9.4
4.0
5.4
44.9
38.9
0.6
1.1
1.0
0.4
35.8
83.8
(1) Obuasi was in care and maintenance in 2017, pending the commencement of the redevelopment project. In June 2018, the Parliament of Ghana ratified
the regulatory and fiscal agreements that cover the redevelopment of the mine, and in December 2019, Obuasi achieved its first gold pour as a modern,
mechanised mine.
Production metrics
Continental Africa
DRC
Kibali (45%)
Ghana
Iduapriem
Obuasi (1)
Guinea
Siguiri (85%)
Mali
Morila (40%)
Sadiola (41%)
Tanzania
Geita
Americas
Argentina
Cerro Vanguardia (92.5%)
Brazil
AGA Mineração
Serra Grande
Australia
Australia
Sunrise Dam
Tropicana (70%)
Continuing operations – total (2)
Discontinued operations
South Africa (2)
Vaal River
Kopanang (3)
Moab Khotsong (3)
West Wits
Mponeng
TauTona (including Savuka) (4)
Surface Operations
Surface Operations (5)
Technology
Technology
AngloGold Ashanti – total (6)
Average grade recovered (g/t)
Attributable gold production (000oz)
2019
1.80
3.37
1.67
–
0.75
0.40
0.82
3.61
3.04
4.77
4.32
3.23
1.87
2.42
1.85
5.69
7.33
2018
1.72
3.06
1.47
–
0.85
0.48
0.87
3.28
3.55
6.49
4.21
3.55
2.01
2.73
1.91
6.82
5.88
8.23
8.19
0.17
0.16
2017
1.61
2.44
1.40
–
1.01
0.40
0.96
3.13
3.49
7.50
4.97
2.95
1.89
2.02
1.87
6.93
4.68
8.15
7.33
6.56
0.17
2019
1,538
2018
1,512
2017
1,453
366
275
2
213
27
51
604
710
225
362
123
614
254
360
2,862
419
243
363
254
–
242
30
59
564
776
282
364
130
625
289
336
2,913
487
12
39
265
176
171
3,281
3,400
268
228
3
324
28
63
539
840
283
424
133
559
238
321
2,852
903
91
294
224
91
192
11
3,755
(1) Obuasi was in care and maintenance in 2017, pending the commencement of the redevelopment project. In June 2018, the Parliament of Ghana ratified
the regulatory and fiscal agreements that cover the redevelopment of the mine, and in December 2019, Obuasi achieved its first gold pour as a modern,
mechanised mine.
(2) The South African operations have been disclosed as a discontinued operation and the comparative results have been restated.
(3) Sold effective 28 February 2018.
(4) TauTona mine was placed into orderly closure during the September 2017 quarter.
(2) The South African operations have been disclosed as a discontinued operation and the comparative results have been restated.
(5) For the purposes of this report, Surface Operations includes MWS, which is operated and managed as a separate cash-generating unit.
(3) Sold effective 28 February 2018.
(4) TauTona mine was placed into orderly closure during the September 2017 quarter.
(5) For the purposes of this report, Surface Operations includes MWS, which is operated and managed as a separate cash-generating unit.
(6) Continuing and discontinued operations.
(6) Continuing and discontinued operations.
PAGE 84
PAGE 85
2019 TH R EE - Y EAR STATISTICS BY OPERATION CON TI NU ED
Operational, financial and sustainability statistics
2019
Productivity (oz/TEC)
Continental Africa
DRC
Kibali (45%)
Ghana
Iduapriem
Obuasi (1)
Guinea
Siguiri (85%)
Mali
Morila (40%)
Sadiola (41%)
Tanzania
Geita
Americas
Argentina
Cerro Vanguardia (92.5%)
Brazil
AGA Mineração
Serra Grande
Australia
Australia
Sunrise Dam
Tropicana (70%)
Continuing operations – total (2)
Discontinued operations
South Africa (2)
Vaal River
Kopanang (3)
Moab Khotsong (3)
West Wits
Mponeng
TauTona (including Savuka) (4)
Surface Operations
Surface Operations (5)
AngloGold Ashanti – total (6)
2019
19.17
2018
20.70
2017
23.01
18.19
26.40
56.49
19.04
–
19.43
–
18.34
–
15.30
17.50
21.69
11.29
18.65
22.16
11.39
9.80
16.66
21.84
12.86
15.76
12.62
22.65
13.34
16.68
20.63
20.97
9.97
9.80
44.85
37.15
52.54
18.32
5.10
4.48
7.95
13.76
10.60
10.50
49.55
41.83
58.91
19.95
4.45
1.67
3.36
4.03
7.83
13.31
11.66
10.13
47.87
40.58
55.20
20.71
3.57
1.97
4.22
3.66
1.92
7.60
9.66
(1) Obuasi was in care and maintenance in 2017, pending the commencement of the redevelopment project. In June 2018, the Parliament of Ghana ratified
the regulatory and fiscal agreements that cover the redevelopment of the mine, and in December 2019, Obuasi achieved its first gold pour as a modern,
mechanised mine.
(2) The South African operations have been disclosed as a discontinued operation and the comparative results have been restated.
(3) Sold effective 28 February 2018.
(4) TauTona mine was placed into orderly closure during the September 2017 quarter.
(5) For the purposes of this report, Surface Operations includes MWS, which is operated and managed as a separate cash-generating unit.
(6) Continuing and discontinued operations.
Costs
Continental Africa
DRC
Kibali (45%)
Ghana
Iduapriem
Obuasi (1)
Guinea
Siguiri (85%)
Mali
Morila (40%)
Sadiola (41%)
Tanzania
Geita
Americas
Argentina
Cerro Vanguardia (92.5%)
Brazil
AGA Mineração
Serra Grande
Australia
Australia
Sunrise Dam
Tropicana (70%)
Continuing operations – total (2)
Discontinued operations
South Africa (2)
Vaal River
Kopanang (3)
Moab Khotsong (3)
West Wits
Mponeng
TauTona (including Savuka) (4)
Surface Operations
Surface Operations (5)
AngloGold Ashanti – total (6)
Total cash costs ($/oz produced)
All-in sustaining costs ($/oz sold)
2019
759
572
815
–
1,091
1,205
966
695
736
673
782
707
730
1,014
504
746
2018
773
600
804
–
844
1,145
938
804
624
476
723
660
762
920
594
729
2017
720
784
823
–
725
974
900
608
638
522
671
764
743
919
564
700
2019
896
704
890
–
1,176
1,237
956
894
1,032
859
1,107
1,105
990
1,246
757
978
2018
904
752
977
–
930
1,321
990
940
855
652
973
945
1,038
1,223
843
942
2017
953
1,090
1,033
–
796
1,218
1,019
941
943
772
1,006
1,103
1,062
1,203
885
993
981
1,032
1,084
1,132
1,182
1,251
2,002
1,083
976
977
987
776
1,030
773
1,534
779
1,014
2,044
969
792
2,115
1,247
1,186
1,177
1.043
998
1,094
976
1,593
938
1,259
2,242
1,045
1,054
(1) Obuasi was in care and maintenance in 2017, pending the commencement of the redevelopment project. In June 2018, the Parliament of Ghana ratified
the regulatory and fiscal agreements that cover the redevelopment of the mine, and in December 2019, Obuasi achieved its first gold pour as a modern,
mechanised mine.
(2) The South African operations have been disclosed as a discontinued operation and the comparative results have been restated.
(3) Sold effective 28 February 2018.
(4) TauTona mine was placed into orderly closure during the September 2017 quarter.
(5) For the purposes of this report, Surface Operations includes MWS, which is operated and managed as a separate cash-generating unit.
(6) Continuing and discontinued operations.
PAGE 86
PAGE 87
TH R EE - Y EAR STATISTICS BY OPERATION CON TI NU ED
Operational, financial and sustainability statistics
Capital expenditure ($m)
Continental Africa
DRC
Kibali (45%)
Ghana
Iduapriem
Obuasi (1)
Guinea
Siguiri (85%)
Mali
Morila (40%)
Sadiola (41%)
Tanzania
Geita
Other and non-controlling interests
Americas
Argentina
Cerro Vanguardia (92.5%)
Brazil
AGA Mineração
Serra Grande
Other and non-controlling interests
Australia
Australia
Sunrise Dam
Tropicana (70%)
Other
Other
Continuing operations – total (2)
Discontinued operations
South Africa (2)
Vaal River
Kopanang (3)
Moab Khotsong (3)
West Wits
Mponeng
TauTona (including Savuka) (4)
Surface Operations
Surface Operations (5)
Technology
Technology
Equity-accounted investments
AngloGold Ashanti – total (6)
2019
410
51
16
246
19
–
–
75
3
195
31
91
34
39
149
43
106
–
3
757
57
50
7
–
814
(51)
763
2018
313
64
43
48
82
2
1
59
14
176
33
96
35
12
156
79
76
1
3
648
73
–
7
54
12
–
721
(69)
652
2017
409
110
51
–
70
2
7
157
12
234
54
136
38
6
153
62
91
–
7
803
150
8
42
72
13
12
3
953
(123)
830
(1) Obuasi was in care and maintenance in 2017, pending the commencement of the redevelopment project. In June 2018, the Parliament of Ghana ratified
the regulatory and fiscal agreements that cover the redevelopment of the mine, and in December 2019, Obuasi achieved its first gold pour as a modern,
mechanised mine.
(2) The South African operations have been disclosed as a discontinued operation and the comparative results have been restated.
(3) Sold effective 28 February 2018.
(4) TauTona mine was placed into orderly closure during the September 2017 quarter.
Average number of employees (permanent employees and contractors)
Continental Africa
DRC
Kibali (45%)
Ghana
Iduapriem
Obuasi (1)
Guinea
Siguiri (85%)
Mali
Morila (40%)
Sadiola (41%)
Tanzania
Geita
Americas
Argentina
Cerro Vanguardia (92.5%)
Brazil
AGA Mineração
Serra Grande
Australia
Australia
Sunrise Dam
Tropicana (70%)
Other, including corporate
and non-gold producing
subsidiaries
2019
Permanent
employees Contractors
Total
2018
Permanent
employees Contractors
Total
2017
Permanent
employees Contractors
Total
15,786
6,131
9,655
14,833
5,697
9,136
13,593
5,467
8,126
2,239
799
1,440
2,497
604
1,893
2,428
402
2,026
1,801
2,924
626
500
1,175
2,424
1,733
1,321
622
290
1,111
1,031
1,598
1,066
628
277
970
789
3,056
1,856
1,200
3,869
1,885
1,984
3,353
1,850
1,503
354
346
5,066
8,114
133
260
1,957
5,869
221
86
3,109
2,245
411
435
150
318
4,567
7,973
1,828
5,755
261
117
2,739
2,218
305
592
4,251
8,511
144
398
1,768
5,888
161
194
2,483
2,623
1,698
1,130
568
1,775
1,179
596
2,001
1,250
751
4,885
1,531
1,140
570
570
3,517
1,222
249
115
134
1,368
309
891
455
436
4,736
1,462
1,051
576
475
3,418
1,158
238
108
130
1,318
304
813
468
345
4,932
1,578
974
489
485
3,465
1,173
226
96
130
1,467
405
748
393
355
1,353
943
410
1,589
1,229
360
2,157
1,753
404
Continuing operations – total (2)
26,393
13,192
13,201
25,446
12,919
12,527
25,235
13,334
11,901
Discontinued operations
South Africa (2)
Vaal River
Kopanang (3)
Moab Khotsong (3)
West Wits
Mponeng
TauTona (including Savuka) (4)
Surface Operations
Surface operations (5)
Other
AngloGold Ashanti – total (6)
7,870
6,682
1,188
18,803
17,049
1,754
26,245
22,738
3,507
4,944
107
2,031
788
4,659
107
1,543
373
285
–
488
415
3,525
6,092
5,400
228
2,290
1,268
3,317
5,450
5,037
228
1,753
1,264
208
642
363
–
537
4
3,879
6,143
5,962
3,822
3,161
3,278
3,628
5,498
5,521
3,399
2,500
2,192
251
645
441
423
661
1,086
34,263
19,874
14,389
44,249
29,968
14,281
51,480
36,072
15,408
(1) Obuasi was in care and maintenance in 2017, pending the commencement of the redevelopment project. In June 2018, the Parliament of Ghana ratified
the regulatory and fiscal agreements that cover the redevelopment of the mine, and in December 2019, Obuasi achieved its first gold pour as a modern,
mechanised mine.
(2) The South African operations have been disclosed as a discontinued operation and the comparative results have been restated.
(5) For the purposes of this report, Surface Operations includes MWS, which is operated and managed as a separate cash-generating unit.
(3) Sold effective 28 February 2018.
(6) Continuing and discontinued operations.
(4) TauTona mine was placed into orderly closure during the September 2017 quarter.
(5) For the purposes of this report, Surface Operations includes MWS, which is operated and managed as a separate cash-generating unit.
(6) Continuing and discontinued operations.
PAGE 88
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2019 TH R EE - Y EAR STATISTICS BY OPERATION CON TI NU ED
Operational, financial and sustainability statistics
Safety
Continental Africa
Ghana
Iduapriem
Obuasi (2)
Guinea
Siguiri
Mali
Sadiola
Tanzania
Geita
Americas
Argentina
Cerro Vanguardia
Brazil
AGA Mineração
Serra Grande
Colombia
Australia
Australia
Sunrise Dam
Tropicana (70%)
Greenfields exploration
South Africa
Vaal River
Kopanang (3)
Moab Khotsong (3)
West Wits
Mponeng
TauTona
(including Savuka) (4)
Surface Operations
Surface Operations (5)
Other
All injury frequency rate (1)
Number of fatalities
Energy usage (PJ)
Water usage (ML)
Environmental performance (1)
2019
0.62
0.50
1.38
0.45
0.65
0.08
3.84
0.79
4.75
6.11
–
7.33
13.00
3.14
17.12
6.60
2018
0.49
0.75
0.62
2017
0.39
0.39
–
0.22
0.13
0.29
1.25
0.60
3.97
0.43
3.29
0.76
1.77
5.05
5.93
0.77
9.14
11.52
7.34
3.50
10.25
18.90
13.44
3.48
5.49
1.26
8.53
12.10
6.11
2.24
12.68
20.99
15.55
9.57
17.12
18.88
0.00
12.79
3.35
4.63
4.21
2019
2018
2017
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1
0
1
0
0
0
0
0
0
2
0
1
1
0
0
0
3
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
7
2
1
4
0
0
0
7
Continental Africa
Ghana
Iduapriem
Obuasi (2)
Guinea
Siguiri
Mali
Sadiola
Tanzania
Geita
Americas
Argentina
Cerro Vanguardia
Brazil
AGA Mineração
Serra Grande
Australia
Australia
Sunrise Dam
Tropicana (4)
South Africa
Vaal River (3)
West Wits (3)
Mine Waste Solutions
AngloGold Ashanti – total
2019
9.93
1.41
0.58
2018
9.36
1.58
0.26
2017
9.16
1.46
0.26
2019
2018
2017
15,801
15,575
16,651
80
–
1,636
–
2,137
–
3.02
2.29
2.40
7,083
6,027
6,349
1.23
1.31
1.55
5,409
4,201
3,476
3.69
4.31
3.92
4.13
3.49
4.23
3,229
8,780
3,711
7,813
4,689
8,283
1.86
1.87
1.90
1,512
1,596
1,487
1.83
0.62
7.68
2.67
5.01
4.40
0.60
2.98
0.82
1.72
0.54
6.72
2.49
4.23
5.17
1.20
3.10
0.87
1.77
0.56
6.32
2.18
4.14
6,825
443
8,698
1,898
6,801
4,717
1,500
7,734
1,808
5,926
10.05
14,617
14,770
4.61
4.61
0.83
3,581
3,257
7,779
4,507
3,256
7,007
5,292
1,504
6,783
1,115
5,668
20,503
10,813
3,688
6,002
26.32
25.38
29.76
47,896
45,892
52,219
(1) Refer to the for definitions of these environmental indicators.
(2) Obuasi was in care and maintenance in 2017, pending the commencement of the redevelopment project. In June 2018, the Parliament of Ghana ratified
the regulatory and fiscal agreements that cover the redevelopment of the mine, and in December 2019, Obuasi achieved its first gold pour as a modern,
mechanised mine.
(3) Includes consumption by Surface Operations’ facilities located in these areas.
(4) Excludes pre-production water use at Tropicana.
AngloGold Ashanti – total
3.31
4.81
7.49
(1) Per million hours worked.
(2) Obuasi was in care and maintenance in 2017, pending the commencement of the redevelopment project. In June 2018, the Parliament of Ghana ratified
the regulatory and fiscal agreements that cover the redevelopment of the mine, and in December 2019, Obuasi achieved its first gold pour as a modern,
mechanised mine.
(3) Sold effective 28 February 2018. Safety numbers have been included to the date of disposal.
(4) TauTona mine was placed into orderly closure during the September 2017 quarter.
(5) For the purposes of this report, Surface Operations includes MWS, which is operated and managed as a separate cash-generating unit.
PAGE 90
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2019 TH R EE - Y EAR STATISTICS BY OPERATION CON TI NU ED
Operational, financial and sustainability statistics
Environmental performance (1)
Continental Africa
Ghana
Iduapriem
Obuasi (2)
Guinea
Siguiri
Mali
Sadiola
Tanzania
Geita
South Africa
Vaal River (3)
West Wits (3)
Mine Waste Solutions
Americas
Argentina
Cerro Vanguardia
Brazil
AGA Mineração
Serra Grande
Australia
Australia
Sunrise Dam
Tropicana
GHG emissions (000t CO2e)
2019
2018
725
121
64
205
84
676
134
31
156
89
251
1,218
266
1,332
173
835
210
177
101
52
24
449
146
303
317
805
210
168
102
45
21
395
140
255
2017
666
124
36
163
106
238
2,733
1,242
1,290
201
182
106
52
24
372
122
250
AngloGold Ashanti – total
2,570
2,571
3,953
No. of reportable environmental incidents
2019
2018
2017
1
0
0
1
0
0
2
0
1
1
0
0
0
0
0
0
0
3
1
0
0
1
0
0
1
0
0
1
0
0
0
0
0
0
0
2
2
0
2
0
0
0
1
0
0
1
0
0
0
0
0
0
0
3
(1) Refer to the for definitions of these environmental indicators.
(2) Obuasi was in care and maintenance in 2017, pending the commencement of the redevelopment project. In June 2018, the Parliament of Ghana ratified
the regulatory and fiscal agreements that cover the redevelopment of the mine, and in December 2019, Obuasi achieved its first gold pour as a modern,
mechanised mine.
(3) Includes consumption by Surface Operations’ facilities located in these areas.
Social performance (1)
US dollar (000)
Continental Africa
Ghana
Iduapriem
Obuasi
Guinea
Siguiri (85%)
Mali
Morila (40%)
Sadiola (41%) and Yatela (40%)
Tanzania
Geita
DRC
Kibali (45%)
South Africa (2)
Americas
Argentina
2019
17,946
484
336
2018
8,121
198
122
10,146
2,474
120
403
142
442
2017
9,025
415
120
890
47
455
5,851
4,119
6,331
607
3,999
6,176
624
5,186
9,407
768
5,971
9,834
Cerro Vanguardia (92.5%)
3,864
7,745
8,885
Brazil
AGA Mineração
Serra Grande
Colombia
Denver office
Australia
Australia
Sunrise Dam and Tropicana
Sub-total
Equity-accounted investments
AngloGold Ashanti – total
1,512
1,209
431
278
91
701
701
28,821
(1,129)
27,692
322
128
3
742
742
23,456
(1,207)
22,249
377
114
451
7
684
684
25,515
(1,460)
24,055
(1) Refer to the for the definition of this social indicator.
(2)
Community investment in the South Africa region is aggregated and is overseen via the corporate entity and includes corporate
community investment.
PAGE 92
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2019 y
r
a
m
m
u
s
a
–
E
C
R
U
O
S
E
R
L
A
R
E
N
M
E
V
R
E
S
E
R
E
R
O
D
N
A
I
PAGE 94
RELEVANT STRATEGIC OBJECTIVES
Ensuring a viable Mineral Resource and
Ore Reserve pipeline will enable delivery of
sustained value-adding growth in the long term
MAINTAIN LONG-TERM
OPTIONALITY
IMPROVE PORTFOLIO
QUALITY
RELATED RISK
Risk 2: Inability to convert Mineral Resource
into Ore Reserve
CAPITAL AFFECTED
NATURAL CAPITAL
ACHIEVEMENTS 2019
• Our Ore Reserve increased by 3.5Moz (before
depletion), indicating the progress made in
extending the lives of our mining operations
• After depletion and excluding South Africa,
the Ore Reserve increased by 1.1Moz
FUTURE APPROACH
To improve operating and mining flexibility by
investing in Ore Reserve development and
Ore Reserve conversion drilling at sites with
high geological potential over the next two to
three years.
MINERAL RESOURCE AND ORE RESERVE
A summary
O ur Mineral Resource and Ore Reser ve portfolio, our
primar y natural capital input, is essential to the
successful growth of our business. By discovering,
developing and exploiting viable orebodies sustainably
and cost efficiently, AngloGold Ashanti positions itself
to create long-term value. Improving the quality of this
natural capital, enhances our ability to create value.
Responsible management of our Ore Reserve and Mineral
Resource, together with our exploration programme and planning,
is vital in optimising and maximising the operating lives of our
portfolio. In so doing, AngloGold Ashanti ensures that it is able
to deliver on its strategic objectives, namely, to maintain long-
term optionality and improve the quality of our portfolio. See also
in this report.
Currently, Ore Reserve management is focused on ensuring our
pipeline is maintained and grows, and that depletion is replaced.
We do this by managing production and organic growth, and by
ensuring optionality and flexibility in our asset portfolio in order to
extend and maximise the operating lives of our assets. AngloGold
Ashanti continuously strives to actively create value by growing
its major asset – our Mineral Resource and Ore Reserve. This
drive is supported by active, well-defined exploration programmes,
innovation in both geological modelling and mine planning, and
continual optimisation of the asset portfolio.
Price assumptions
The SAMREC code requires application of reasonable economic
assumptions. These include long-range commodity price and
exchange rate forecasts. These are reviewed annually and are
prepared in-house using a range of techniques including historic
price averages. AngloGold Ashanti selects a conservative Ore
Reserve price relative to its peers. This is done to fit into the
strategy to include a margin in the mine planning process. The
resultant plan is then valued at a higher business planning price.
At several of our underground operations, primarily in Brazil and
Australia, a change in methodology in 2019 resulted in significant
reductions in Mineral Resource. These changes where introduced
to better meet the requirement for eventual economic extraction.
The process saw the introduction of a stope optimiser to
constrain the Mineral Resource in an economically and technically
defined shape and to clean out existing pillars not considered
mineable from a geotechnical perspective. This process
represents a once-off adjustment.
Reporting compliance
Our Mineral Resource and Ore Reserve are reported in
accordance with the minimum standards described by the
South African Code for the Reporting of Exploration Results,
Mineral Resources and Mineral Reserves (The SAMREC
Code, 2016 edition).
We achieve this through ensuring the principles of integrity,
transparency and materiality are central to the compilation
of the and through using the reporting criteria and
definitions as detailed in the SAMREC code.
The Mineral Resource is inclusive of the Ore Reserve
component, unless otherwise stated. In complying with
the 2016 SAMREC Code, changes to AngloGold Ashanti’s
Mineral Resource and Ore Reserve have been reviewed and
it was concluded that none of the changes are material to
the overall valuation of the company.
AngloGold Ashanti has therefore once again resolved not
to provide the detailed reporting as defined in Table 1 of the
code. We will however continue to provide the high level of
detail it has in previous years in order to comply with the
transparency requirements of the code.
Gold price
The following local prices of gold were used as the basis for estimation in the December 2019 declaration:
Local prices of gold
Gold price
South Africa
US$/oz
1,100
1,100
1,400
1,400
ZAR/kg
541,501
501,150
693,274
563,331
Australia
AUD/oz
1,512
1,509
1,981
1,778
Brazil
BRL/oz
4,230
3,565
5,166
4,501
Argentina
ARS/oz
57,080
45,443
78,102
51,564
Colombia
COP/oz
3,230,030
–
3,838,220
–
2019 Ore Reserve
2018 Ore Reserve
2019 Mineral Resource
2018 Mineral Resource
Copper price
The following copper price was used as the basis for estimation in the December 2019 declaration:
2019 Ore Reserve
2018 Ore Reserve
2019 Mineral Resource
2018 Mineral Resource
Copper price
US$/lb
2.65
2.65
3.30
3.30
COP/lb
7,947
–
9,646
–
PAGE 95
2019
MIN E RA L RE SO UR CE A ND ORE RESERVE CON TI NU ED
A summary
Mineral Resource
Gold
Our Mineral Resource reduced from 184.5Moz in December 2018 to
175.6Moz in December 2019. This gross annual decrease of 8.9Moz
includes depletion of 4.1Moz. The balance of 4.8Moz resulted
from reductions of 4.0Moz due to the application of a revised
methodology at some operations, to constrain the underground
Mineral Resource and thereby ensure the Mineral Resource meets
the requirement for reasonable and realistic prospects of eventual
economic extraction. Further reductions of 2.4Moz were due
primarily to pillar clean up, 0.6Moz was due to revised geotechnical
design requirements and other factors resulted in reductions
of 1.3Moz. These reductions were offset by increases due to
exploration of 2.9Moz, changes in economic assumptions of 0.3Moz
and changes in ownership of 0.3Moz. The Mineral Resource was
estimated at a gold price of $1,400/oz (2018: $1,400/oz).
MINERAL RESOURCE – GOLD
Mineral Resource as at 31 December 2018
Depletions
Additions
Sub total
Due to:
Quebradona
Remodelling and change in ownership
Obuasi
Geita
Iduapriem
Other
Reductions
Obuasi
Exploration of underground and surface targets
Mineral Resource conversion drilling and reduced mining costs after contract renegotiation
Additions less than 0.5Moz
Sub total
Due to:
Constraining of the Mineral Resource following changes in methodology and removal of Mineral
Resource at depth resulting from downgrading
AGA Mineração
Application of a mining constraint on the underground Mineral Resource
Sunrise Dam
Application of a mining constraint on the underground Mineral Resource
Siguiri
Other
Increased costs
Reductions less than 0.5Moz
Mineral Resource as at 31 December 2019
Copper
Moz
184.5
(4.1)
180.4
1.4
1.0
0.9
0.8
184.5
(3.0)
(2.8)
(1.5)
(1.1)
(0.5)
175.6
Ore Reserve
Gold
Our Ore Reserve reduced from 44.1Moz in
December 2018 to 43.9Moz in December
2019. This gross annual decrease of
0.2Moz includes depletion of 3.7Moz.
The increase before depletion of 3.5Moz,
resulted from additions of 3.6Moz due
to exploration and modelling changes,
changes in economic assumptions of
0.4Moz and a change in ownership
of 0.1Moz. Other factors resulted in a
0.6Moz reduction. The Ore Reserve was
estimated using a gold price of
US$1,100/oz (2018: US$1,100/oz).
ORE RESERVE – GOLD
Ore Reserve as at 31 December 2018
Iduapriem
Depletions
Additions
Obuasi
Kibali
Geita
Sub total
Due to:
Model updates which resulted in new designs for Sansu, Block 8 and Block 11
Exploration which upgraded Inferred Mineral Resource was partially offset by higher open pit costs
resulting from the changes in the DRC's mining code. Fresh rock processing costs also increased
Exploration additions at Nyankanga and Star and Comet, as well as the steepening of the planned
eastern pit wall at Nyankanga Cut
AGA Mineração
Additions to the Cuiabá model, mainly at Serrotinho, which were countered by increased costs used
in the feasibility study for the mining of secondary orebodies as well as a review of mining methods. At
Lamego, additions resulted from exploration at Carruagem
Iduapriem
Inclusion of Block 5 in the Ore Reserve given reduced mining costs
Quebradona
Remodelling and change in ownership
Other
Additions of less than 0.3Moz
Reductions
Other
Sub total
Due to:
Reductions less than 0.3Moz
Ore Reserve as at 31 December 2019
Copper
Moz
44.1
(3.7)
40.4
1.3
0.8
0.8
0.5
0.5
0.3
0.3
44.9
(1.0)
43.9
The AngloGold Ashanti Mineral Resource increased from 3.61Mt (7,954Mlb) in December 2018 to 4.39Mt (9,677Mlb) in December 2019.
This gross annual increase of 0.78Mt includes an increase of 0.58Mt (1,293Mlb) due to a change in methodology and 0.20Mt (430Mlb) due
to change in ownership from 94.876% to 100% as B2Gold’s shareholding was converted to a share of profits. The Mineral Resource was
estimated at a copper price of US$3.30/lb (2018: US$3.30/lb).
Our copper Ore Reserve increased from 1.26Mt (2,769Mlb) in December 2018 to 1.39Mt (3,068Mlb) in December 2019. This gross annual
increase of 0.14Mt includes an increase of 0.07Mt (150Mlb) due to methodology and 0.07Mt (150Mlb) due to change in ownership from
94.876% to 100% as B2Gold’s shareholding was converted to a share of profits. The Ore Reserve was estimated at a copper price of
US$2.65/lb (2018: US$2.65/lb).
MINERAL RESOURCE – COPPER
Mineral Resource as at 31 December 2018
Additions
Due to:
Quebradona
Remodelling and change in ownership
Mineral Resource as at 31 December 2019
PAGE 96
Mt
Moz
ORE RESERVE – COPPER
3.61
7,954
Ore Reserve as at 31 December 2018
Additions
Due to:
0.78
4.39
1,723
9,677
Quebradona
Remodelling and change in ownership.
Ore Reserve as at 31 December 2019
Mt
Moz
1.26
2,769
0.14
1.39
300
3,068
PAGE 97
2019
MIN E RA L RE SO UR CE A ND ORE RESERVE CON TI NU ED
A summary
By-products
Several by-products will be recovered as a result of processing of
the gold and copper Ore Reserve. These include estimates over life
of mine of 0.39Mt of sulphur from Brazil, 18.76Moz of silver from
Argentina and 25.95Moz of silver from Colombia.
Governance
Our established Mineral Resource and Ore Reserve Steering
Committee (RRSC) is responsible for setting and overseeing our
Mineral Resource and Ore Reserve governance framework and for
ensuring that it meets AngloGold Ashanti’s goals and objectives
while complying with all relevant regulatory codes. The committee’s
membership and terms of references are mandated under a policy
document signed by the Chief Executive Officer.
For more than a decade, the Company has developed and
implemented a rigorous system of internal and external reviews
aimed at providing assurance in respect of Ore Reserve and
Mineral Resource estimates. The following operations were subject
to an external review in line with the policy that each operation/
project will be reviewed by an independent third party on average
once every three years:
• Mineral Resource and Ore Reserve at Siguiri
• Mineral Resource and Ore Reserve at Geita
• Mineral Resource and Ore Reserve at AGA Mineração Cuiabá
and Lamego
• Mineral Resource and Ore Reserve at AGA Mineração Córrego
do Sítio
External reviews were conducted by Golder Associates Pty
Ltd and certificates of sign-off were received stating that the
Mineral Resource and/or Ore Reserve estimates are reported in
accordance with the SAMREC Code.
In addition, numerous internal Mineral Resource and Ore Reserve
process reviews were completed by suitably qualified Competent
Persons from within AngloGold Ashanti. No significant deficiencies
were identified. Our Mineral Resource and Ore Reserve are
underpinned by appropriate Mineral Resource management
processes and protocols. These procedures have been developed
to be compliant with the guiding principles of the Sarbanes-Oxley
Act of 2002 (SOX). AngloGold Ashanti makes use of a web-based
group reporting database called the Resource and Reserve Reporting
System (RCubed) for the compilation and authorisation of Mineral
Resource and Ore Reserve reporting. It is a fully integrated system
for reporting and reconciliation of Mineral Resource and Ore Reserve
that supports various regulatory reporting requirements, including the
SEC and the JSE under the SAMREC Code. AngloGold Ashanti uses
RCubed to ensure a documented chain of responsibility exists from
the competent persons at the operations to the Company’s RRSC.
AngloGold Ashanti has also developed an enterprise-wide risk
management tool that provides consistent and reliable data that
allows for visibility of risks and actions across the group. This tool is
used to facilitate, control and monitor material risks to the Mineral
Resource and Ore Reserve, thus ensuring that the appropriate risk
management and mitigation plans are in place.
Competent persons
The information in this report relating to Exploration Results, the Mineral Resource and the Ore Reserve is based on information
compiled by, or under, the supervision of the Competent Persons as defined in the SAMREC Code. All Competent Persons are
employed by AngloGold Ashanti, except for Kibali’s and Morila's Competent Person, and have sufficient experience relevant to
the style of mineralisation, type of deposit under consideration and to the activity which they are undertaking. The legal tenure of
each operation and project has been verified to the satisfaction of the accountable Competent Person and it has been confirmed
that all of our Ore Reserve is covered by the required mining permits or there exists a realistic expectation that these permits
will be issued. This is detailed in the . The Competent Persons consent to the inclusion of Exploration Results, Mineral
Resource and Ore Reserve information in the , in the form and context in which it appears.
Accordingly, the Chairman of the Mineral Resource and Ore Reserve Steering Committee, VA Chamberlain, MSc (Mining
Engineering), BSc (Hons) (Geology), MGSSA, FAusIMM, assumes responsibility for AngloGold Ashanti’s Mineral Resource and
Ore Reserve processes and is satisfied that the Competent Persons have fulfilled their responsibilities. VA Chamberlain, who
has 32 years’ experience in exploration and mining, is employed full-time by AngloGold Ashanti and can be contacted at the
following address: 76 Rahima Moosa Street, Newtown, Johannesburg 2001, South Africa.
A detailed breakdown of the Mineral Resource and Ore Reserve and backup detail is provided on the AngloGold Ashanti website,
www.anglogoldashanti.com, and on our reports website, www.aga-reports.com.
OUR MINERAL RESOURCE AND ORE RESERVE
ARE UNDERPINNED BY APPROPRIATE
MINERAL RESOURCE MANAGEMENT
PROCESSES AND PROTOCOLS
Geita
PAGE 98
PAGE 99
2019 MIN E RA L RE SO UR CE A ND ORE RESERVE CON TI NU ED
A summary
Mineral Resource by region inclusive of Ore Reserve
Gold
Mineral Resource by region exclusive of Ore Reserve
Gold
As at 31 December 2019
Continental Africa
South Africa
Americas
Australia
AngloGold Ashanti
Copper
As at 31 December 2019
Americas
AngloGold Ashanti
Ore Reserve by region
Gold
As at 31 December 2019
Continental Africa
South Africa
Americas
Australia
AngloGold Ashanti
PAGE 100
Category
Measured
Indicated
Inferred
Total
Measured
Indicated
Inferred
Total
Measured
Indicated
Inferred
Total
Measured
Indicated
Inferred
Total
Measured
Indicated
Inferred
Total
Category
Measured
Indicated
Inferred
Total
Measured
Indicated
Inferred
Total
Category
Proved
Probable
Total
Proved
Probable
Total
Proved
Probable
Total
Proved
Probable
Total
Proved
Probable
Total
Tonnes
million
48.01
425.15
169.14
642.30
104.63
596.87
24.70
726.21
83.91
1,170.40
677.38
1,931.69
57.88
70.81
28.30
156.99
294.43
2,263.23
899.53
3,457.19
Tonnes
million
57.90
203.77
340.43
602.10
57.90
203.77
340.43
602.10
Tonnes
million
30.89
176.72
207.62
65.00
493.05
558.05
8.27
194.87
203.15
27.62
29.64
57.26
131.79
894.28
1,026.07
Grade
Contained gold
g/t
3.09
2.62
3.65
2.93
1.64
1.91
11.25
2.19
1.58
0.92
0.75
0.89
1.17
1.91
2.69
1.78
1.77
1.53
1.64
1.58
Tonnes
148.48
1,113.36
618.15
1,879.99
171.13
1,142.09
277.85
1,591.07
132.97
1,073.30
504.74
1,711.01
67.82
135.36
76.23
279.40
520.39
3,464.11
1,476.96
5,461.46
Moz
4.77
35.80
19.87
60.44
5.50
36.72
8.93
51.15
4.28
34.51
16.23
55.01
2.18
4.35
2.45
8.98
16.73
111.37
47.49
175.59
Grade
Contained copper
% Cu
Tonnes million
Pounds million
1.10
0.89
0.57
0.73
1.10
0.89
0.57
0.73
Grade
g/t
1.71
2.86
2.69
0.36
0.93
0.86
2.36
1.05
1.11
1.17
2.29
1.75
0.97
1.38
1.33
0.64
1.81
1.95
4.39
0.64
1.81
1.95
4.39
Contained gold
Tonnes
52.76
505.05
557.80
23.49
457.83
481.32
19.49
205.22
224.72
32.28
67.95
100.23
128.02
1,236.05
1,364.07
1,406
3,981
4,290
9,677
1,406
3,981
4,290
9,677
Moz
1.70
16.24
17.93
0.76
14.72
15.47
0.63
6.60
7.22
1.04
2.18
3.22
4.12
39.74
43.86
As at 31 December 2019
Continental Africa
South Africa
Americas
Australia
AngloGold Ashanti
Copper
As at 31 December 2019
Americas
AngloGold Ashanti
Copper
As at 31 December 2019
Americas
AngloGold Ashanti
Category
Measured
Indicated
Inferred
Total
Measured
Indicated
Inferred
Total
Measured
Indicated
Inferred
Total
Measured
Indicated
Inferred
Total
Measured
Indicated
Inferred
Total
Category
Measured
Indicated
Inferred
Total
Measured
Indicated
Inferred
Total
Category
Proved
Probable
Total
Proved
Probable
Total
Tonnes
million
9.83
254.04
162.29
426.16
7.37
61.63
17.88
86.88
74.29
971.71
675.56
1,721.56
30.26
41.17
28.30
99.73
121.75
1,328.55
884.03
2,334.33
Tonnes
million
57.90
92.53
340.43
490.86
57.90
92.53
340.43
490.86
Tonnes
million
–
111.24
111.24
–
111.24
111.24
Grade
g/t
3.21
2.60
3.62
3.00
18.83
9.64
15.36
11.60
1.38
0.86
0.74
0.83
1.17
1.64
2.69
1.80
2.53
1.62
1.63
1.67
Contained gold
Tonnes
31.57
659.80
587.45
1,278.81
138.81
593.96
274.73
1,007.49
102.49
831.96
500.64
1,435.09
35.54
67.41
76.23
179.17
308.40
2,153.12
1,439.05
3,900.56
Moz
1.01
21.21
18.89
41.11
4.46
19.10
8.83
32.39
3.30
26.75
16.10
46.14
1.14
2.17
2.45
5.76
9.92
69.22
46.27
125.41
Grade
Contained copper
% Cu
Tonnes million
Pounds million
1.10
0.45
0.57
0.61
1.10
0.45
0.57
0.61
Grade
% Cu
–
1.25
1.25
–
1.25
1.25
0.64
0.41
1.95
3.00
0.64
0.41
1.95
3.00
1,406
913
4,290
6,609
1,406
913
4,290
6,609
Contained copper
Tonnes million
Pounds million
–
1.39
1.39
–
1.39
1.39
–
3,068
3,068
–
3,068
3,068
OUR MINERAL RESOURCE AND ORE RESERVE
ARE REPORTED IN ACCORDANCE
w i t h t h e m i n i m u m s t a n d a r d s d e s c r i b e d b y t h e S A M R E C C o d e
PAGE 101
2019
EXP L ORATION A ND PROJECTS
Planning for the future
E xp loration an d projects withi n A ng l oGol d A sh a n ti
focu s on creating significant valu e fo r th e co mp a n y
by pr oviding long-ter m optionali ty a nd i mp rovi n g
the p ortfolio quality, two of our strat eg i c f ocus are a s.
Ou r exp loration prog ramme cov ers g re en fi el d s an d
brow nfields p rojects.
These strategic objectives are met by:
• Greenfields exploration which aims to discover large, high-value
Mineral Resource, which will eventually lead to the development
of new gold mines
• Brownfields exploration focuses on delivering value through
accretive additions to the Ore Reserve at existing mines as
well as new discoveries in defined areas around operations.
Brownfields exploration actively drives the creation of value
by growing our Mineral Resource and Ore Reserve, our major
assets. The brownfields exploration programme is based on
innovation in geological modelling and mine planning, and
continual optimisation of our asset portfolio
This report serves to highlight the achievements in 2019. In 2020,
the focus will fall on increasing the Ore Reserve by increased Ore
Reserve development and exploration drilling, primarily in Brazil
and Australia.
Greenfields exploration
Exploration was conducted within 5,500km2 of highly prospective
ground in two countries – Australia and the United States – along
with licence applications and other ground positions in Argentina,
Brazil and Tanzania. In total, more than 71km of diamond, reverse
circulation (RC) and aircore (AC) drilling was completed in 2019.
In Australia, in the Laverton district, AngloGold Ashanti completed
the 70% earn-in at the Butcher Well and Lake Carey JV. The
Butcher Well scoping study was updated by integrating the drilling
results from the second half of 2018. Elsewhere in Laverton, a total
of 49,200m of aircore drilling and 4,486m of diamond drilling was
completed on several joint venture and non-joint venture projects.
Diamond drilling programmes were also completed at the Mt Clark
prospect in North Queensland (nine holes for 2,748m) and the
Glandore prospect, located 60km east of Kalgoorlie in Western
Australia (six holes for 1,846m), with no positive results derived.
In the United States, at the Silicon project in Nevada, 8,008m of
RC and 3,300m of diamond drilling were completed in 2019. The
programme followed up on and further developed understanding
of the alteration system intersected in earlier drilling as well as
testing other favourable litho-structural targets within the Silicon-
Thompson structural corridor. An induced polarization (IP) survey
was also completed along with ground magnetic and gravity
surveys. The second-year anniversary payment was made to
Renaissance Gold during the period to maintain the option earn-in
agreement into the third and final year in 2020.
Also in the United States, in Minnesota, roto-sonic drilling was
completed over several target areas with 54 holes completed for
a total of 1,619m. Since the results from the programme were not
encouraging, work has stopped. AngloGold Ashanti returned all the
mineral leases to the state of Minnesota.
PAGE 102
In Argentina and Tanzania, exploration properties are on care and
maintenance. Target generation activities were completed in Brazil
and West Africa.
Brownfields exploration
Brownfields exploration was carried out in 9 countries, in and
around AngloGold Ashanti operations. A total of 877,630m of
Diamond and RC drilling was completed during the year.
South Africa
Exploration continued with one-hole drilled at Mponeng’s Western
Ultra Deep Levels targeting the Ventersdorp Contact Reef. Drilling
was stopped due to capital constraints and the final site clearance/
closure certificate signed off in June.
Americas
Argentina: At Cerro Vanguardia, due to budget constraints,
exploration was focused on mapping, surface sampling and ground
geophysical surveys.
Brazil: At AGA Mineração, in the Iron Quadrangle, a total of
263,345m was drilled. At Cuiabá, the underground drilling
programme focused on Fonte Grande and Serrotinho (upright limb),
Balancão and Galinheiro (overturned limb). A long-inclined borehole
drilling project was successfully completed. Positive results with
significant intercepts were reported for secondary targets including
the quartz vein project (VQZ) and Viana.
Regionally, drilling at the Descoberto target is ongoing and has
produced encouraging observations. Land access was granted
in October 2019 to allow the Matarelli target drill programme to
begin. A trial unmanned aerial vehicle (UAV) magnetic survey was
successfully completed at Matarelli and a more comprehensive
survey covering the Matarelli and Tinguá targets is planned. A
detailed geological map and associated cross sections were
produced over the Tinguá target area ahead of a geochemical soil
programme planned for early 2020.
At Lamego, drilling focused on confirming the continuity of
Carruagem in a south-westerly direction (both limbs) from levels 1 to
5. Drilling also took place at Cabeça de Pedra (hinge zone), which
reported high grades and indicated that the orebody remains open.
Drilling at CdS tested the Rosalino open pit. At CdS I, underground
drilling in Laranjeiras and Carvoaria confirmed the Mineral Resource
and indicate good prospectivity for high grades in Carvoaria. In the
‘Gold Quadrangle’ area of Candeias-Cristina, Mutuca, Cachorro
Bravo and Pneu, drilling supported Mineral Resource additions in
the area.
At CdS II, drilling in the shallow north-east portion of São Bento
confirmed the continuity of the mineralised structure in that
direction. The Remaining Ounces project identified potential areas
for high-grade ore within old mining areas. At CdS III, a sterilisation
drilling campaign is underway and one positive intercept suggests
the extension of the Anomalia and Jambeiro target trends.
A total of 128,888m was drilled at Serra Grande. Exploration drilling
at Pitanga, Palmeiras South, Mangaba, Corpo IV, V and Limoeiro
resulted in the addition of Mineral Resource. The mine acquired
the Palmeiras South area in late 2018 which contains the southern
extension of all mineralised trends; subsequent drilling during 2019
returned positive results along Structure 3.5.
The Pitanga orebody was discovered along Structure III close to
Mina Nova mine. Reinterpretation of existing orebodies at Corpo
IV, Corpo V and Limoeiro, supported exploration drilling and lead
to new ounce generation. Target generation focused on assessing
shallow opportunities and using interpreted S2 stacking behaviour
to identify new potential areas to test in 2020.
Colombia: Limited exploration activities were completed at
Gramalote. RC drilling started at Trinidad in October and diamond
drilling at Gramalote in November with no results reported to date.
The La Colosa project continued on care and maintenance
following the cessation of all field activities in April 2017.
At Quebradona, a total of 10,494m was drilled, focusing on
geotechnical programmes for site infrastructure, the tunnel trace,
the mine subsidence area and the crusher chamber. Geological
and structural models were updated for infrastructure sites, the
tunnel and mine area.
Continental Africa
Tanzania: At Geita, a total of 96,407m of drilling was completed
in 2019.
The overall results for Star & Comet Cut 2 Mineral Resource
drilling were positive. While exploratory drilling results identified no
economic intersections, interpretation and review are ongoing. The
Star & Comet Cut 3 Mineral Resource drilling results confirmed
the down-dip continuity. Extension drilling at Star & Comet Cut
2 and Cut 3 confirmed the presence of open-ended high-grade
mineralisation along the hanging wall and footwall sides of the
intrusive, suggesting that the Cut 2 and Cut 3 orebodies might join
and become one.
Mineral Resource development drilling programmes for Nyankanga
underground were carried out at Blocks 3, 4 and 5 as well as in the
gap area between Block 2 and 3. All results were positive.
the orebody extensions inside and outside the pit margins. While
exploratory surface drilling at Mabe delineated localised orezones
of medium to high grade.
At Geita Hill, underground Blocks 1 and 2 drilling results defined
low-grade mineralised zones. Drilling initiated at the Roberts
deposit confirmed the presence and potential of economic ore
zones within and outside the optimised pit.
Guinea: At Siguiri, a total of 74,939m was drilled during the year.
Kami drilling has shown that the mineralisation extends into the
fresh rock and into oxide in Kami East saddle. Bidini drilling shown
that the mineralisation extends to the east of the pit in oxide.
Silakoro West drilling was completed and confirmed the
mineralisation. While at Silakoro North drilling intersected
mineralisation associated with disseminated sulphides.
Foulata East drilling results show unmineralised albitite, while
the main Foulata drillholes indicate the potential extension of
mineralisation at depth and along the trend. Advanced grade
control (AGC) drilling at Foulata confirmed the model.
At Saraya, drilling confirmed the extension of shallow mineralisation
to the north and deeper along the plunge. The Saraya AGC
drilling confirmed the model despite defining thicker internal waste
intervals. At Seguelen, PB2 drilling confirmed the extension of the
mineralisation in the fresh rock.
The Sanu Tinti infill drilling crossed potentially mineralised breccio-
conglomerates layers. At Niono, reconnaissance drilling showed
weak potential for oxide mineralisation. The Doko, Block 4,
reconnaissance drill programme is now 48% complete with some
economic intersection.
At Balato North, Saraya West EL and Setiguiya West
reconnaissance drilling showed negative results. Field visits and
reviews confirmed the potential of the Carbonate Hills (East and
Central) targets.
Three of eight holes in the surface drilling programme at the Star
& Comet North Extension returned lower grades than previous
data. Results from surface drilling completed at Selous confirmed
Ghana: At Iduapriem, a total of 21,279m was drilled in 2019.
Exploration focused on Mineral Resource conversion drilling at
Block 1, Ajopa, Efuanta and Block 4S. Regional mapping of the
Geita
PAGE 103
2019 EXP L ORATION A ND PROJECTS CON TI NU ED
Planning for the future
hydrothermal targets commenced during the year as well as auger
drilling at Mile 8 and Mile 5W targets.
underground rig took place during November and an eighth rig was
commissioned in December 2019.
At Obuasi, drilling started on 27 May 2019 with capital drilling on
41 level, grade control drilling on 17 and 22 levels, and expensed
exploratory drilling in the GCS top area.
One surface rig was in operation, targeting the southern extensions
of the deposit from surface, 520m and 360m south of the current
Ore Reserve from the Cleo waste dump.
The 41-level drill programme completed 7,921m of combined RC
and diamond drilling. Two multi-purpose RC/diamond rigs are
being used to accelerate data acquisition and reduce costs. The
grade control programme drilled 3,480m and showed continuity of
the Obuasi fissure in terms of grade and structure. The 5,475m of
exploratory drilling indicated potential in the footwall splays.
DRC: A total of 25,210m was drilled at Kibali.
The drilling results at Gorumbwa-Sessenge gap support the
continuity of the mineralisation from Gorumbwa into the gap.
At Tropicana, mine drilling consisted of infill drilling at Havana to
upgrade the Mineral Resource confidence and assist in the mining
option studies. Significant results were returned from the infill drilling
at Havana, as well as encouraging results from drilling at Havana
South down-dip.
Regional drilling was concentrated at Iceberg, Tumbleweed, New
Zebra, Angel Eyes Voodoo Child, Wild Thing, Electra, Mojito and
Monsoon. Regional drilling produced an important result from RC
drilling at Voodoo Child that indicates mineralisation is present
~500m along strike from the defined prospect.
At Ikamva, drilling observations support the model while at Ikamva-
East, the drilling programme was completed, and the results
returned support the consistency of the two lenses. Two holes were
drilled into the Kalimva-Ikamva Hinge zone with results supporting
the model of a potential link between the two structures.
Results also suggest the presence of other shoots pertaining to the
Kalimva system.
The orientation drilling programme along the Zakitoko-Birindi trend
was completed and indicate an extension down dip and along
strike. A data review of the Aindi area was conducted leading to
identification of four zones of interest.
In the Oere-Kalimva Gap, the drilling programme is complete and
indicates no mineralisation within the gap. While in the Mofu-Oere
gap, a trenching programme showed weak results from surface
that increase down dip and plunge.
Eight trenches were excavated in the Mandungu-Memekazi-Renzi
trend with overall results supporting the model and the trenching
programme at Memekazi Northeast, returning results that support
the potential of the area.
At Sayi, the results support the model and continuity of the
interpreted mineralisation. While drilling in the Sayi-Mengu gap
returned narrow intercepts. Results from the Renzi trenching
programme support the model, though they are relatively low
grade, while the Oere drilling results support the presence of high-
grade domains within the mineralisation envelope.
A soil sampling programme in the KZ South area returned results
supporting potential for a mineralised system. At Pakaka, drilling
results from the hole furthest southeast support a consistently
thin high-grade mineralisation along the sheared contact
observed in the pit.
Mali: No drilling was completed in 2019.
Australia
Australia: At Sunrise Dam, six underground rigs were in use during
the period, with most drilling taking place at Vogue, Midway Shear
(MWS) Steeps and Elle, as well as at Stella (Target 18) and Steeps
below Sunrise Shear Zone (Target 01). Commissioning of a seventh
Tropicana
PAGE 104
Projects
Colombia
The greenfields projects in Colombia make a significant
contribution to AngloGold Ashanti’s Mineral Resource with
the three projects, La Colosa, Quebradona and Gramalote,
collectively contributing 38.5Moz. Quebradona and Gramalote
contribute 4.3Moz to the gold Ore Reserve. Quebradona also
has a copper Ore Reserve of 3,068Mlbs. Both Quebradona
and Gramalote are at various stages of feasibility study
while the La Colosa project is currently under force majeure,
pending the necessary environmental permits.
Gramalote project
The Gramalote project, a joint venture between AngloGold
Ashanti (51%) and B2Gold (49%) in Colombia, lies on the
eastern flank of the Cordillera Central, near the towns of
Providencia and San Jose del Nus in the municipality of San
Roque, in the north-west of the Antioquia Department. It is
approximately 230km north-west of Bogota and about 120km
north-east of Medellin.
In September 2019, AngloGold Ashanti announced that an
agreement had been reached with B2Gold, in terms of which
B2Gold would fund an investment and exploration programme
in 2020 to the value of $13.9m, in order to earn back to a
50:50 partnership and assume management of the project
effective 1 January 2020. Completion of the feasibility study
for Gramalote is targeted for the end of 2020. The project has
several key infrastructure advantages including reliable water
supply, its close proximity to key infrastructure and a technically
capable workforce in country.
As per the agreement, B2Gold assumed management of the
Gramalote joint venture on 1 January 2020. On 21 January
2020, B2Gold announced positive results from the updated
preliminary economic assessment (PEA) for the Gramalote
Ridge deposit, a part of the Gramalote project. The PEA
updates and enhances previous studies on the Gramalote
project in several areas, which are listed in the announcement
1 made in January 2020
B2Gold is currently completing approximately 42,500m of
infill drilling at Gramalote Ridge to convert the existing Inferred
Mineral Resource to the Indicated category, and 7,645m
geotechnical drilling for site infrastructure.
The Gramalote joint venture will continue to advance
community resettlement programmes, establish coexistence
programmes for small artisanal miners, to work on health,
safety and environmental projects and to continue to work with
government and local communities on social programmes.
B2Gold, as manager, plans to continue to complete and submit
the feasibility work by 31 December 2020. Given that the
volume of work completed by AngloGold Ashanti over the past
several years – including extensive testing programmes, work
with local communities and small miners and the high level
of engineering performed in 2017 for an internal study – the
remaining work required to complete the final feasibility study is
not extensive. The main work programme for feasibility is infill
drilling to confirm and upgrade the Inferred Mineral Resource to
the Indicated category. The budget agreed by the joint venture
partners for the feasibility study is $37m.
The Environmental Impact Study and Project Implementation
Plan for the Gramalote project have been fully approved by
the National Authority of Environmental Licences of Colombia.
Due to necessary modifications to the processing plant and
infrastructure locations, a Modified Environment Impact Study
and a Modified Project Implementation plan were submitted
and are currently in the final stages of approval. If the final
economics of the feasibility study are positive and the joint
venture makes the decision to develop Gramalote as an open
pit gold mine, B2Gold would use its proven internal mine
construction team to build the mine and mill facilities, and
operate the mine on behalf of the joint venture.
Quebradona Project
The Quebradona deposit is located approximately 104km
south-west from Medellin, Antioquia Department and is a
porphyry-related, copper-gold mineralised stock work system,
located within the Western Cordillera of Colombia. Until 2019,
the project was a joint venture with B2Gold (5.7% and diluting)
and AngloGold Ashanti (94.3% and operator). During 2019, the
5% dilution threshold was reached and the parties entered into
a royalty agreement in which B2Gold transferred the minority
interest in the joint venture to AngloGold Ashanti in exchange
for a royalty fee during production.
During the year, AngloGold Ashanti continued with the
exploration programme, with the key aim of developing the
feasibility study, completing and submitting the environmental
and construction licence requests (filled in November 2019),
and securing the land required for project implementation. The
Quebradona project is an attractive business case of ~8.7Moz
gold equivalent, with required capital investment estimated at
around ~$1b and an internal rate of return at approval stage of
15% (meeting our required hurdle rate).
2020 will be a critical year for the project, with an estimated
investment of approximately $64m, targeted at the following
key milestones:
• Complete the feasibility study and present it to the board
for approval in November 2020
• Obtain the environmental and construction licence by
November 2020
• Complete the process of securing the land for project
implementation
La Colosa
The La Colosa project is located approximately 150km west of
Bogota in the Tolima Department. It is a very large porphyry-
style gold deposit discovered by the Colombia greenfields
exploration team in 2006. The project is 100% owned by
AngloGold Ashanti. The project comprises a singular large
deposit likely in excess of 28.33Moz of Mineral Resource and
endowment. The project’s prefeasibility study began in 2010
and was formally put on care and maintenance in April 2017. A
second-time force majeure was granted pending environmental
permits. The force majeure is expected to be renewed in
June 2020 if the conditions associated with the environmental
licence permits remain.
1 Updated Preliminary Economic Assessment for the Gramalote
Project in Colombia
PAGE 105
2019 S E C T I O N 4
LEADERSHIP
AND
ACCOUNTABILITY
W e r e v i e w o u r p e r f o r m a n c e
a n d p h i l o s o p h y r e l a t i n g
t o c o r p o r a t e g o v e r n a n c e ,
r e m u n e r a t i o n a n d a s s u r a n c e o f
t h e i n f o r m a t i o n p r e s e n t e d i n
t h i s I n t e g r a t e d R e p o r t .
Audit and Risk Committee: chairman’s report
Corporate governance, board and executive committee
Remuneration and Human Resources Committee: chairman’s letter
Remuneration report – overview of remuneration policy
Remuneration report – implementation report
108
110
119
123
138
PAGE 106
PAGE 106
PAGE 107
Obuasi
2019 AU D IT AND R ISK C OMMITTEE: CHAIRPERS ON’ S REPORT
O v e r s i g h t o n t h e c o m p l e t e n e s s
a n d f a i r r e p r e s e n t a t i o n o f t h e
C o m p a n y ' s f i n a n c i a l p o s i t i o n
INTEGRITY
CONTROL
Rhidwaan Gasant
Chairperson: Audit and Risk Committee
T he Audit and Risk Committee’s principal duty is to oversee the integrity of the group’s internal
controls, systems and environment.
These duties include responsibility for ensuring that AngloGold Ashanti’s financial statements comply with the International Financial
Reporting Standards (IFRS) and fairly present the financial position of the group and Company and the results of their operations. The Audit
and Risk Committee (the committee) executed its duties in terms of the JSE Listing Requirements (paragraph 3.84(g) in particular), section
94(7) of the Companies Act, King IV, and board-approved terms of reference as set out in the committee’s annual work plan.
For a detailed report on this work plan, refer to the Audit and Risk Committee Chairperson’s letter in the , pages 1 to 6.
Non-executive independent committee members
Meetings and attendance
Stakeholders
Rhidwaan Gasant
Rodney Ruston
Maria Richter
Alan Ferguson
Michael Kirkwood – Retired 9 May 2019
5 meetings
100% attendance
• Shareholders
• Employees
• Regulators
Key focus 2019
IFRS16
XBRL and i-XBRL tagging
Committee’s discussions, decisions and actions
Key focus 2020
Discussed feedback received regularly on the process adopted
to address the requirements of the new accounting standard
and where appropriate challenged management on aspects of
accounting
Monitored the actions of management in meeting the requirements
and noted the successful and timely filings of the required financial
reports
Combined assurance
Monitored the progress that was made in involving technical
disciplines in the combined assurance process
Risk themes considered
Assessed and discussed the management process and controls to
address the risks associated with:
• Tailings facility management
• Critical control management
• Brazilian operations – risks and opportunities
• Critical skills and talent management
Monitor the internal control
environment given recent asset sales
Monitor the cyber crime environment
and the group’s prevention and
defence capabilities
Monitoring continuous improvement
in the identification, mitigation and
reporting of key risks facing the
group, including our risk appetite and
risk ranking methodology
Further consider the group's
approach to the proposed mandatory
auditor firm rotation
The committee is satisfied that it fulfilled its responsibilities in accordance with its terms of reference as well as relevant legislative and
regulatory requirements, as summarised below:
Financial reporting
Governance
• Reviewed half and full year results, trading statements,
• Reviewed developments in reporting standards,
and market updates
corporate governance best practice and legislation
• Reviewed and assessed the key audit matters raised as
• Evaluated the committee's effectiveness
part of the 2019 year-end audit
• Considered the integrity of the , and the Form
20-F for the 2019 financial year, and recommended these
for approval to the board
• Assessed accounting judgements, estimates and
impairments
• Reviewed tax provisions and contingencies
• Considered the 2019 as well as related feedback
on this report from the Investment Committee
• Assessed the going concern assumptions and solvency/
liquidity requirements
• Monitored the XBRL and i-XBRL filing processes
• Reviewed and assessed the expertise, experience and
performance of the finance function, the Chief Financial
Officer and Group Internal Audit
• Approved an updated whistle-blowing policy
• Assessed the feedback of an independent assessment of
the whistle-blowing process
• Reviewed the terms of reference of the Audit and
Risk Committee
• Held separate meetings with the external and internal
auditors as well as management at each meeting
Internal control and risk management
External auditors
• Assessed the systems to identify, manage and monitor
• Assessed their effectiveness
financial, non-financial and fraud risks
• Reviewed the scope, resources, and results of internal audit
• Approved the internal audit plan and monitored the
• Assessed their suitability and that of the lead audit
partner and recommended the appointment of the
independent external auditors by the shareholders
execution thereof
• Approved their terms of engagement, remuneration and
• Ensured that the combined assurance model was further
refined to provide a co-ordinated approach to assurance
activities
• Reviewed significant whistle-blowing reports
• Monitored the governance of information technology (IT),
including cyber security
• Received and reviewed quarterly updates on risk
management within the group
• Received and reviewed semi-annual updates on
compliance related matters
integrated audit plan
• Pre-approved all non-audit services
• Assessed their independence and concluded that
there were no impediments on the external auditors’
independence
• Approved their appointment to provide independent
limited assurance on certain sustainability indicators
included in the
STATEMENT OF INTERNAL CONTROL
The opinion of the board on the effectiveness of the internal control environment is informed by the conclusion of the committee.
Based on the Audit and Risk Committee’s assessment of the results of the formal documented review conducted by Group
Internal Audit and other identified assurance providers of the evolving combined assurance model of the group’s system of
internal controls and risk management, including the design, implementation and effectiveness of the internal financial controls,
and considering information and explanations given by management and discussions with both the internal and external auditors
on the results of their audits, nothing has come to the attention of the board that caused it to believe that the Company’s system
of internal controls and risk management is not effective and that the internal financial controls do not form a sound basis for the
preparation of reliable financial statements.
PAGE 108
PAGE 109
2019 CORP O RATE GOVERNANCE
A NGLOGOLD ASHANTI is committed to the highest standards of governance, ethics and integrity. Good corporate
governance is integral to our sustainability. Adherence to the standards and recommendations set out in King IV
and to other relevant laws and regulations is vital to achieving our strategic priorities.
Ethical leadership and corporate citizenship
The AngloGold Ashanti board, which has ultimate responsibility for
corporate governance, is guided by its commitment to ensuring
sound governance principles and practices are in effect. These
principles and practices underpin value creation and the long-term
sustainability of our business, and are crucial to the achievement of
our business objectives and delivery on the strategy.
AngloGold Ashanti’s governance structures and processes
demonstrate our commitment to high standards of business integrity
and ethics in all its activities, and are underpinned by our values-
driven culture and Code of Business Principles and Ethics (Our
Code). In making decisions, the board acts with independence, and
has the appropriate competencies and experience collectively to
execute its fiduciary duties.
The board is committed to promoting good governance and
providing ethical leadership. It supports the outcomes described in
King IV, namely, ethical culture, good performance, effective control
and legitimacy. AngloGold Ashanti reviewed its application of the
King IV principles and is satisfied that the Company is materially
compliant. A statement on our application of these principles is
available online at www.anglogoldashanti.com.
Our Code is the defining document for AngloGold Ashanti’s
values and ethics, and is used in addition to the applicable laws,
regulations, standards and contractual obligations to guide our
business decisions in the countries in which we operate. Our Code
provides a framework and sets requirements for the implementation
of key corporate policies and guidelines. Among other areas, it
addresses fraud, bribery and corruption, conflicts of interest, gifts,
hospitality and sponsorships, the use of company assets, privacy
and confidentiality, disclosures and insider trading.
The board ensures that at all times AngloGold Ashanti is and is
seen to be a responsible corporate citizen by not only considering
our financial performance, but by striving to enhance and invest
in the economic life of the communities in which we operate and
society in general, and endeavoring to protect and minimise harm
to the environment, thus enforcing good ESG practices. The
board’s Social, Ethics and Sustainability Committee ensures the
application of the principles of responsible corporate citizenship
and the executive committee is responsible for ensuring they are
put into practice and adhered to.
Board composition
AngloGold Ashanti is governed by a unitary board of directors,
which at year-end consisted of eleven directors – nine independent
non-executive directors and two executive directors. During the year,
Michael Kirkwood and David Hodgson retired with effect from
9 May 2019. Maria Ramos and Nelisiwe Magubane were appointed
as directors with effect from 1 June 2019 and 1 January 2020,
respectively. The board comprises directors with a variety of skills,
professional experience and backgrounds which complement each
other and are relevant to the business in the execution of the board’s
duties. The composition of the board promotes the balance of power
and of authority and precludes any one director from dominating
decision-making.
PAGE 110
1
2
Independent non-executive directors
1
Sipho M. Pityana (60)
(Chairman)
2
Rhidwaan Gasant (60)
(Lead independent director)
3
Alan Ferguson (62)
BA (Hons), MSc, DTech (Honoris)
Appointed: 13 February 2007 and Chairman
on 17 February 2014
BCompt (Hons), CA (SA), ACIMA, Executive
Development Programme
BSc, Accountancy and Business Economics, CA
Appointed: 12 August 2010
Appointed: 1 October 2018
C
C
4
Albert Garner (64)
5
Nozipho January-Bardill (69)
6
Nelisiwe Magubane (54)
3
4
BSE, Aerospace and Mechanical Sciences
BA, MA Applied Linguistics, Diploma Human
Resources Development
Pr.Eng, BSc, MBA
Appointed: 1 January 2015
Appointed: 1 October 2011
Appointed: 1 January 2020
7
Maria Ramos (61)
8
Maria Richter (65)
9
Rodney Ruston (69)
MSc (Economics), BCom, Banker Diploma,
Certified Associate of the Institute of Bankers
(South Africa)
BA, Juris Doctorate
MBA, BE (Mining)
5
6
Appointed: 1 June 2019
Appointed: 1 January 2015
Appointed: 1 January 2012
C
C
Independent non-executive directors
Executive directors
10
Jochen Tilk (56)
B Mining Engineering,
Masters Mining Engineering
Appointed: 1 January 2019
11
Kelvin Dushnisky
(Chief Executive Officer) (56)
12
Christine Ramon
(Chief Financial Officer) (52)
BSc (Hons), MSc and Juris Doctorate
BCompt, BCompt (Hons), CA(SA), Senior
Executive Programme
Appointed: 1 September 2018
Appointed: 1 October 2014
7
8
Detailed CVs of directors are available on the corporate website, www.anglogoldashanti.com
C
9
1
0
Legend
Audit and Risk Committee
Remuneration and Human Resources Committee
Social, Ethics and Sustainability Committee
Nominations Committee
Investment Committee
Committee Chairman
1
1
1
2
COMMITTED TO
THE HIGHEST
GOVERNANCE
STANDARDS
Obuasi
PAGE 111
2019 CORP O RATE GOVERNANCE CON TI NU ED
The information below is as at the date of approval of this report by the board.
Independence of directors
In determining director independence, we are guided by
King IV, the Companies Act, the JSE Listings Requirements,
the NYSE independence test and our internal policy on
independence, as well as by best practice. For 2019, all non-
executive directors were assessed as being independent in
terms of mind, character and judgement.
Executive directors
Kelvin Dushnisky (CEO)
Christine Ramon (CFO)
Tenure
Non-executive directors: time on board
AngloGold Ashanti board
Independent non-executive directors
Sipho M Pityana
(Chairman)
Rhidwaan Gasant
(Lead independent director)
Alan Ferguson
Albert Garner
Nozipho January-Bardill
Nelisiwe Magubane
Maria Ramos
Maria Richter
Rod Ruston
Jochen Tilk
9 years and longer
6 to 8 years
3 to 5 years
Less than 3 years
20%
20%
20%
0
10
20
30
40%
40
50
The board appoints new directors on the recommendation of the Nominations Committee, which conducts rigorous credentials
assessments of each potential candidate. Several factors including relevant legislative requirements, best practice, the candidate’s
qualifications and skills and the requirements of AngloGold Ashanti’s Directors’ Fit and Proper Standards, as well as regional
demographics are considered in appointing new board members. Their appointments are subject to shareholder approval at the
annual general meeting following their appointment.
In terms of our memorandum of incorporation, one-third of directors are required to retire at each annual general meeting and, if
eligible and available for re-election, will be put forward for re-election by shareholders. The directors due to retire at the forthcoming
annual general meeting are Sipho Pityana and Albert Garner, who are eligible and have offered themselves for re-election, and
Nozipho January-Bardill and Rodney Ruston, who have elected not to stand for re-election, in accordance with board policies and
guidelines. See the .
Board diversity
AngloGold Ashanti supports the principles and aims of
diversity at board level and recognises and embraces the
benefits of having a diverse board. In terms of the board policy
on the promotion of gender diversity, a target of having at
least 40% female board members by 2020 was set. Female
now make up 42% of the board following the appointments of
Maria Ramos and Nelisiwe Magubane, up from 27% in 2018.
When considering racial diversity, for AngloGold Ashanti
to leverage the benefits of a globally diverse board that is
aligned with our geographic footprint, race is not limited to
‘black’ as defined by the South African Department of Mineral
Resources and Energy but includes foreign black nationals. The
voluntary target for race diversity at board level is 50% black
representation. At present, black representation from a global
perspective is 42% and that of historically disadvantaged
individuals (HDIs) is 50%, up from 36% on a global and
HDI basis in 2018. This improvement is attributed to the
appointments of Maria Ramos and Nelisiwe Magubane.
Board skills and experience
Corporate governance
Economics
Engineering technical
Environment health and safety
Finance/accounting
Government/public policy
Human resources/labour
International relations
Legal
25%
Mergers and acquisitions
Mining
Risk management
Strategy development
33%
42%
42%
Broader diversity, specifically focusing on gender, race, culture,
age, field of knowledge, skills and experience will be considered
in determining the optimal composition of the board and
succession planning, and when possible will be balanced
appropriately for the board to be effective as a whole.
Female
42%
GENDER
(Target 40%
female)
Male
HDI
RACE
(Target 50% HDI)
Non-South Africans
58%
50%
50%
AGE
50%
50%
50%
50%
Between 50 and 59
33%
Between 60 and 69
67%
100%
100%
58%
67%
75%
0
20
40
60
80
100
PAGE 112
PAGE 113
1022019 CORP O RATE GOVERNANCE CON TI NU ED
Directors’ interests
Directors are required to declare their interests annually and to
disclose any conflicts of interest, and if they arise, to determine the
extent to which the conflict may impact their duties at AngloGold
Ashanti. Once a conflict has been disclosed, it is managed
appropriately by the board. A Declaration of Interest form is
maintained by the company secretary and any new interest is
declared at each meeting.
Directors’ dealings in shares and closed periods
In accordance with statutory and regulatory requirements,
directors, management and any restricted employees may not
deal directly or indirectly in the securities of the Company during
specific closed or prohibited periods. All directors and the company
secretary require prior approval from the chairman to deal in the
Company’s shares. The company secretary retains a record of all
such share dealings.
Executive directors
The Chief Executive Officer (CEO), Kelvin Dushnisky, is responsible
for execution of AngloGold Ashanti’s strategy and reports to the
board. He chairs the nine-member executive committee that is
responsible for the day-to-day management of the group’s affairs.
The committee’s work is supported by country and regional
management teams as well as by group corporate functions.
The Chief Financial Officer (CFO) is Christine Ramon. As required
by the JSE Listings Requirements, the Audit and Risk Committee
annually considers and expresses its satisfaction at the level
of expertise and experience of the CFO. The Audit and Risk
Committee concluded that Christine Ramon, together with other
members of the financial management team, had effectively and
efficiently managed the group’s financial affairs during 2019, as
detailed in the CFO’s review, which is included in the .
Both the CEO and CFO are executive directors on the board.
AngloGold Ashanti's board committees
The overriding role of the board is to ensure the long-term
sustainability and success of the business, for the mutual benefit
of all stakeholders. Its overall role is one of strategic leadership.
This includes the setting, monitoring and review of strategic
targets and objectives, the approval of capital expenditure,
acquisitions and disposals, and oversight of governance, internal
controls and risk management.
The board is supported by five committees to which it delegates
certain functions without abdicating any of its own responsibilities.
This process of formal delegation involves documented and
approved terms of reference, which are reviewed at least annually,
or more often when required.
Audit and Risk Committee
• Oversees the integrity of our financial reporting, the existence of
proper internal controls, the integrity of the , ,
and of our risk management processes
• Assesses AngloGold Ashanti’s continuing ability to operate
as a going concern, assists the board with oversight of IT
governance, risk management and implementation of the group
ethics and regulatory compliance programme
PAGE 114
• Ensures the Company has qualified external auditors and
Board and committee meeting attendance
internal auditors
• More detailed information on the committee’s achievements is
available in the .
Social, Ethics and Sustainability Committee
• Key responsibility is to assist the board in monitoring matters
relating to safety, health, the environment and ethical conduct,
and to ensure that AngloGold Ashanti develops and behaves as
a responsible corporate citizen
• Ensures that our sustainability strategy positions AngloGold
Ashanti as a leader in mining and that sustainability objectives
are effectively integrated into the business
• Oversees the integrity of and approves the
More information on the work done during the year by the
committee is available in the .
Remuneration and Human Resources Committee
• Assists the board in ensuring that remuneration policies are in
AngloGold Ashanti’s long-term interests
• Ensures that, in terms of decisions made, non-executive
directors, executive directors, senior management and all other
employees are fairly and responsibly remunerated and that
shareholder value is delivered
• Assists the board in the development of AngloGold Ashanti’s
human resources environment
More information on the achievements of the committee is available
in the .
Nominations Committee
• Develops processes to identify, assess and recommend board
candidates for appointment as executive and non-executive
directors, including the Chairman and CEO, as well as for
the company secretary, and at the same time fully considers
succession planning and leadership within the group
• Reviews board composition, including the balance of gender,
race, culture, age, field of knowledge, skills, experience and
independence
• Develops and implements the annual board evaluation
processes, whether internal or external
Investment Committee
• Assesses individual capital projects and investment and
divestment opportunities to ensure that they and any financing
proposals are in accordance with AngloGold Ashanti’s primary
mission to creating sustained shareholder value in the long term
The latest approved board charter and committees’ terms
of references, containing detailed information regarding their
respective responsibilities and mandates, are available online 1 .
1 See under Governance on www.anglogoldashanti.com
Directors’ attendance at board and committee meetings during 2019 was as follows:
Audit
Board
and Risk Investment
Remuneration
and Human
Resources
Social,
Ethics and
Sustainability
Nominations
Special
Committee (5)
NED
Search (5)
Number of meetings
in 2019
SM Pityana
KPM Dushnisky
AM Ferguson
AH Garner
R Gasant (1)
DL Hodgson (2)
NP January-Bardill
MJ Kirkwood (3)
KC Ramon
MDC Ramos (4)
MC Richter
RJ Ruston
JE Tilk
7
7
7
7
7
7
2
7
2
7
4
7
7
6
5
n/a
n/a
5
n/a
5
n/a
n/a
2
n/a
n/a
5
5
n/a
4
n/a
n/a
n/a
4
4
1
n/a
n/a
4
2
n/a
4
4
4
4
n/a
4
n/a
n/a
n/a
4
1
n/a
n/a
4
n/a
n/a
5
5
n/a
n/a
n/a
n/a
2
5
n/a
n/a
2
n/a
n/a
5
2
2
n/a
n/a
2
1
n/a
n/a
1
n/a
n/a
2
n/a
n/a
2
2
2
2
2
n/a
n/a
n/a
n/a
n/a
2
n/a
n/a
n/a
2
2
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
1
2
n/a
1
(1) R Gasant was appointed to the Nominations Committee with effect from 7 August 2019.
(2) DL Hodgson retired at the AGM held on 9 May 2019.
(3) MJ Kirkwood retired at the AGM held on 9 May 2019.
(4) MDC Ramos was appointed with effect from 1 June 2019.
(5) Two special purpose committees were established by the board during 2019, the Special Board Committee and the NED Search Committee.
Cuiabá
PAGE 115
2019 CORP O RATE GOVERNANCE CON TI NU ED
Board and committee evaluations
We are committed to complying with the following standards:
• Universal Declaration on Human Rights
• International Bill of Human Rights
• International Labour Organisation
In addition, we have group policies and charters to which we
adhere. Increasingly, customers and consumers want assurance
that the gold they are purchasing has not contributed to conflict or
human rights abuse. This has resulted in several measures being
introduced by industry-related organisations of which we are part,
to prevent gold and other commodities from being used to fund
conflict and other violations of human rights.
By virtue of its shares or depositary receipts being registered with
the Securities and Exchange Commission (SEC) in the United
States, AngloGold Ashanti is also subject to the various laws
applicable in that country regarding securities. This is in addition to
being subject to the various listing requirements applicable for all
the stock exchanges on which the Company is listed. These are
the Johannesburg, Ghana and Australian stock exchanges.
South African Employment Equity Act
In compliance with Section 21 of the Employment Equity Act, No 55
of 1998, AngloGold Ashanti is obliged to file with the Department
of Labour, the employment equity statistics for its South African
workforce. A copy of the report filed for the period 1 August 2018 to
31 July 2019 is available on the AngloGold Ashanti website, in the
section entitled “Employment Equity Reports”. AngloGold Ashanti
has also embarked on a new five-year plan (1 August 2019 to
31 July 2024), in accordance with Section 20 of the Employment
Equity Act, No 55 of 1998.
Board performance is evaluated annually and includes an
assessment of the board as a whole, individual directors and
each committee by members of the committee. An external board
evaluation is conducted every third year and for the other two
years, an internal evaluation is facilitated by the company secretary.
Evaluation of the effectiveness and performance of the board
and its committees was internally assessed in 2019. The overall
results indicated the board was performing well and that the
governance structures are better than satisfactory and closely
aligned with best practice.
Company secretary
The company secretary, Maria Sanz Perez, is responsible for
developing, implementing and maintaining effective processes
and procedures to support the board and its committees in the
discharge of their duties and responsibilities. She advises the board
and individual directors on their fiduciary duties and on corporate
governance requirements and best practices.
In line with the JSE Listings Requirements, the board evaluated
the qualifications, competence and experience of the company
secretary in 2019 and was satisfied that Maria Sanz Perez is
qualified to serve as company secretary. The board also confirmed
the company secretary’s independence and that she maintains an
arms-length relationship with the board and is not a director of the
Company. Maria Sanz Perez’s qualifications and experience are
available on the website 1 .
Legal, ethical and regulatory compliance
The group’s geographical spread makes its legal and regulatory
environment diverse and complex. Given the critical importance of
compliance in building a sustainable business, group compliance
plays an essential role in coordinating compliance with laws and
regulations, standards and contractual obligations and in assisting
and advising the board and management on designing and
implementing appropriate compliance policies and procedures.
External and internal standards and regulations
AngloGold Ashanti adheres strictly to legislative and regulatory
requirements, including several external and voluntary standards
which are listed below.
AngloGold Ashanti is a member of and a signatory to the:
• International Council on Mining and Metals
• Principles of the United Nations Global Compact
• Extractive Industries Transparency Initiative (EITI)
• United Nations Guiding Principles on Business and
Human Rights
• Voluntary Principles on Security and Human Rights
• World Gold Council’s Conflict-Free Gold Standard and
Responsible Gold Mining Principles
Sunrise Dam
1 www.anglogoldashanti.com
PAGE 116
Governance of supply chain management and
procurement policies
Supply chain management is about more than just procuring the
right product, at the right time, at the right quality and in the right
quantities. Effective supply chain management, undertaken with
integrity and in line with our values and governance principles, can
add value to our business by improving efficiency, relationships and
reputation and, ultimately, can affect our long-term sustainability.
As a global company operating on most of the world’s continents,
responsible management of our supply chain is an increasingly
important ethical and human rights consideration. External ratings
agencies and customers are ever more aware of the implications
and importance of ethical conduct in the supply chain.
Responsible supply chain management has the potential to add
value to communities, local governments and society as a whole,
particularly in developing countries. We have adopted a cross-
functional approach to supply chain management to ensure best
practice, which includes complying with international human
rights and labour standards and the economic participation of
local stakeholders.
Tax strategy and tax management policy
Our tax strategy, which is aligned with our business strategy
and its objectives, is to manage all our global tax obligations in
a transparent, responsible and sustainable manner, within the
governance framework established by our Tax Management Policy
while respecting the differing interests of all our stakeholders.
We recognise that AngloGold Ashanti must earn and maintain
its social licence to operate in partnership with government
and community stakeholders, thus contributing towards their
sustainable future in the countries where we operate. Aligned with
our vision, mission and values, we acknowledge our obligations as
a responsible corporate citizen and that our operations contribute
material tax revenues, in terms of both taxes borne and taxes
collected, to the economies of the countries in which we conduct
our business.
As a member of the EITI, a global standard to promote open and
accountable management of natural resources, AngloGold Ashanti
is committed to reporting the amounts paid to governments in
respect of our operations in those countries that have implemented
the standard.
The principles governing the group’s tax strategy and policy are
reviewed and approved by the board which, through the Audit and
Risk Committee, monitors adherence to the policy.
Our tax policy governs the management of tax throughout
AngloGold Ashanti and confirms the defined parameters within
which the board-approved tax strategy is applied. The tax
governance framework employs a combination of suitably skilled
resources and internal processes, together with internal and
external controls. Our approach to tax and our tax strategy are
each embedded in the organisation, through various regular
regional governance meetings.
Our overall objective is to act responsibly in ensuring efficiency
in our tax affairs in all countries in which we operate, to always
fully comply with the law while taking into account, however, that
such laws may be subject to regular amendment and differing
interpretations and practices prevailing from time to time.
PAGE 117
2019 EXE C UT IV E MANAGEMENT
REM UNERATION REPORT
Section one: Remuneration and Human Resources Committee: Chairperson’s letter
1
2
3
A l i g n i n g r e m u n e r a t i o n a n d
h u m a n r e s o u r c e p r a c t i c e s
w i t h o u r s t r a t e g i c o b j e c t i v e s
4
5
6
7
8
9
Independent non-executive directors
1
Kelvin Dushnisky (56)
2
Christine Ramon (52)
3
Stewart Bailey (46)
Chief Executive Officer
Chief Financial Officer
BSc (Hons), M.Sc. and Juris Doctorate
BCompt, BCompt (Hons), CA(SA), Senior
Executive Programme
Executive Vice President:
Corporate Affairs and Sustainability
4
Pierre Chenard (59)
5
Graham Ehm (63)
6
Ludwig Eybers (53)
Executive Vice President: Corporate Development
and Strategy
Executive Vice President: Group Planning
and Technical
Chief Operating Officer: International
BSc (Min. Eng), Post graduate qualifications
LLB; admitted attorney
BSc (Hons), MAusIMM, MAICD
7
Sicelo Ntuli (41)
8
Maria Sanz Perez (54)
9
Tirelo Sibisi (51)
Chief Operating Officer: Africa
BSc Eng. (Electrical), MBA
Executive Vice President: General Counsel,
Compliance and Company Secretary
Executive Vice President: Group
Human Resources
BCom LLB, Higher Diploma in Tax, Advanced
Management Programme, Admitted Attorney
BSSc, Advanced HR Executive Development
Programme, MBA, Post Graduate Diploma in
Business Management
Detailed CVs of current executive management are available on the corporate website, www.anglogoldashanti.com
PAGE 118
FAIRNESS
EQUALITY
Maria Richter
Chairperson: Remuneration and
Human Resources Committee
Dear Shareholders,
As the new Chairperson of the Remuneration and Human
Resources Committee (the committee), I am pleased to continue
the important work of ensuring clear alignment of AngloGold
Ashanti’s remuneration and human resource practices with its
strategic objectives. Remuneration is a rapidly evolving discipline,
particularly with respect to executive fair and responsible pay for
performance, gender diversity, talent management and – especially
relevant for our business – the development and retention of local
skills in the jurisdictions in which we have operations or projects.
Engagement with shareholders is invaluable in ensuring that
the linkage between strategy and incentive outcomes is clearly
understood. It is also very important that the views of the
shareholders are taken into account in the development and
implementation of our remuneration policy. My predecessor valued
these engagements and I have committed to continuing that
tradition, engaging with shareholders – outside of voting season –
to ensure that we receive unfiltered input on all matters relating to
our remuneration and human resources practices.
Continuous improvement is fundamental to long-term success in
mining and remaining open to enhancement of our remuneration
practices is no exception. In line with King IV and the JSE
Listing Requirements, we are reporting for the first time the
executive management team’s remuneration in Single Total Figure
Remuneration format. This further improves transparency and
accountability to shareholders.
I am also pleased to report that the committee observed
management’s continued delivery of the Company’s strategy during
2019. Clear advances were made towards de-risking the asset
portfolio, while delivering significant improvements in safety, cash
flows and returns. Meaningful progress was made in the broad area
of sustainability, as well as in capital allocation and balance sheet
management, providing a solid foundation upon which AngloGold
Ashanti can continue to improve its asset base over time.
Performance on safety, health and the
environment
Success for any mining company relies on the safe operation of
its mines, the good health of employees and host communities,
and careful stewardship of the environment.
AngloGold Ashanti, as part of the global community, is
experiencing the covid-19 pandemic. As safety is our first value,
we will continuously focus on the safety of our employees,
which is aligned to our shareholders’ interests. We will monitor
the developments of this pandemic, engaging shareholders and
other stakeholders accordingly.
I am most proud that AngloGold Ashanti passed the calendar
year without a workplace fatality for the first time ever and
extended its fatality-free record to 633 days. Tragically, we have
since lost four of our colleagues in two separate incidents that
occurred in March 2020 at the Mponeng mine. This places even
greater focus on our commitment to safety and to working on the
eradication of all injuries and accidents across our mines.
Our commitment to excellence will however continue with
much diligence and dedication in the areas of safety, health and
environment which is underpinned by our Deferred Share Plan
(DSP), the variable pay programme with 20% of the total annual
bonus used to reward the positive outcomes of this basket of
sustainability metrics.
Management performance and achievements
It has been a memorable first year as Chairperson of this
committee and I am proud to share management’s performance
and achievements:
• Free cash flow increased by 90% as annual guidance was
achieved across key operating metrics for the seventh
straight year
• The Obuasi redevelopment project poured first gold on time and
within budget and remains on track to mine at a rate of 2,000t
a day during 2020, climbing to 4,000t a day by year-end. The
mine will produce gold at an average run-rate of 350,000oz
– 400,000oz annually for the first ten years, and more than
400,000oz annually over the life of mine at an all-in sustaining
cost of around $800/oz
• The capital allocation framework, with clear leverage and return
targets, guided the decision to initiate processes to sell assets in
South Africa, Argentina and Mali. In December 2019, AngloGold
Ashanti announced the sale of its interest in the Sadiola mine,
in Mali, to Allied Gold Corp, while an agreement to sell the
PAGE 119
2019 REMU NE RATI ON REPORT CON TI NU ED
Section one: Remuneration and Human Resources Committee: Chairperson’s letter (continued)
remaining South African producing assets and related liabilities
to Harmony Gold Mining Company Limited was reached in
February 2020
• AngloGold Ashanti’s market capitalisation increased by almost
80% in 2019, as the share price outpaced the gold price and
its international peer group. The American Depositary Receipts,
the Company’s most liquid publicly traded security, gained 76%
in 2019 versus a 39% gain for the Van Eck Vectors Gold Miners
ETF, a basket of 47 gold shares, and an 18% rise in the price of
bullion over the year
The committee commends the management team, led by the
CEO Kelvin Dushnisky, for intensifying its dual focus on protecting
– and indeed, improving – margins while working to maintain
and strengthen the social licence to operate. This approach is
consistent with the remuneration policy which aims to discourage
excessive risk taking, while recognising efforts to improve
performance with respect to factors within management’s control
that will drive value creation over the short-, medium- and long
term, in an ethical, sustainable and responsible manner.
Notwithstanding the above achievements, production, all-in
sustaining costs, future optionality – particularly in the area of
Mineral Resource additions – community and environmental
elements provide us with further opportunities for improvement as
evidenced in the DSP 2019 performance outcomes on page 149.
Given the satisfactory performance in 2019 across financial,
operating and safety metrics, the committee is satisfied with the
remuneration outcomes of the DSP.
In terms of the 2017 Long-Term Incentive Plan (LTIP) (one of the
prior year schemes replaced by the DSP in 2018), the strong
growth in our share price and continued focus on the key value of
safety yielded a solid performance of 94.46%, payable in March
2020. This is the final pay-out of the LTIP scheme. (Further details
are set out on page 148 of the remuneration report.)
Obuasi
PAGE 120
Competitive remuneration
Shareholder engagement
As a large gold mining company with a complex suite of assets
across developed and emerging markets, AngloGold Ashanti
requires competitive remuneration structures to attract and retain
scarce skills and expertise. This is fundamental to our strategy.
It is also imperative to ensuring that we are able to compete
and flourish in a volatile global mining industry, with increasingly
exacting requirements from shareholders, civil society, regulators
and our host governments. These remuneration structures are well
considered and have clear guardrails, which are detailed in the
2019 remuneration policy and structure on page 126.
Disclosure and transparency
The remuneration policy and implementation report were tabled for
two separate, non-binding advisory votes at the Annual General
Meeting (AGM) held on 9 May 2019, in line with the JSE Listings
Requirements and King IV recommendations. The table below
details the results of the 2018 AGM (held on 9 May 2019) which
reflect shareholder concerns over the structure of the CEO’s sign-
on award, together with results of shareholder voting at the 2017
and 2016 AGMs.
Votes
For
Against
Withheld
Remuneration policy
09 May 2019
16 May 2018
16 May 2017
98.31
98.35
98.23
Remuneration implementation report
09 May 2019
16 May 2018
16 May 2017
58.51
98.96
98.31
1.69
1.65
1.77
41.49
1.04
1.69
0.40
0.21
0.60
0.40
0.21
0.30
This poll alongside showed 98.31% of shareholders voted in favour of the remuneration policy compared with 58.51% for its
implementation.
I subsequently engaged with investors representing over 30% of the shareholder base with the aim of better understanding their
perspectives and to ensure that our remuneration practices and reporting reflect their views. Following these meetings – which were
supportive and constructive – we have further enhanced the detail of our disclosure, including additional information related to the CEO’s
joining remuneration in 2018, which can be found on page 138 of the remuneration report. The table below summarises the key themes
from shareholder engagements, and our responses.
Shareholder feedback
Remuneration committee response
Concern over lack of
performance criteria
attached to the CEO’s
sign-on award
While the payment of $4.2m was disclosed in the 2018 Remuneration report, it was incorrectly described
as a share buy-out. The correct position is that, at the time of the negotiations, Mr Dushnisky expected
corporate activity under discussion at the time by his former employer that would entitle him to a substantial
contractual severance payment. He was prepared to wait for this activity to materialise and for the payment
to become due, after which time he would join AngloGold Ashanti. However, in light of AngloGold Ashanti’s
requirement that he start immediately after the departure of the former CEO, the parties agreed to a value
that took into account Mr Dushnisky’s expected loss of compensation and his willingness to start at the
earlier date.
The committee determined that it would be in the best interests of our shareholders for the negotiated
sign-on award to be both staggered over three years and have a significant proportion payable in AngloGold
Ashanti shares, to create immediate alignment with shareholders’ interests. Should the CEO leave
AngloGold Ashanti within a certain period of time, a claw-back clause was agreed. We regard the retention
component of the sign-on award as an essential part of our retention strategy.
Further details of the CEO’s remuneration are included on page 152 of this report.
Lack of transparency
on the sign-on award
of CEO
The committee is committed to providing greater transparency with respect to all aspects of remuneration
and is introducing enhancements to the remuneration policy. The proposed enhancements are included on
page 122. We would also like to emphasise the following elements of our current recruitment policy:
• Appointees will not be paid more than what they would have lost at their previous company;
• A time period is applied to a buy-out with a minimum claw-back; and
• We will provide full disclosure of any buy-out.
I am grateful for the opportunities to hear directly from the
shareholders. The committee has enjoyed their strong support
for the overall remuneration policy which was revised and
implemented in 2018 and adheres to South African corporate
governance recommendations. The committee believes that these
remuneration practices have balanced the needs of shareholders
and employees and served both constituencies well over time.
AngloGold Ashanti’s remuneration policy and implementation
report will be tabled for separate non-binding advisory votes by
shareholders at the upcoming AGM, as recommended by King IV.
If either, or both, are voted against by 25% or more of the voting
rights entitled to be exercised by shareholders at the AGM, the
committee will embark on an engagement process with dissenting
shareholders to address legitimate and reasonable objections,
where appropriate.
Fostering an equitable workplace
The Company continues to focus on the development of an
equitable workplace and is committed to equal pay and gender
equity in line with the JSE Listings Requirements, King IV
guidelines and our diversity policy.
Furthermore, the Company continues to develop the leadership
succession pool and has implemented strategies to attract,
motivate and retain a skilled workforce through fair, responsible,
transparent and competitive remuneration. The attraction and
retention of suitable local candidates to replace expatriates
are done through labour planning processes, recruitment from
the local market and bursar and graduate trainee schemes.
The group talent, succession management, training and
development processes at all of our operations ensures that we
address localisation across our global footprint.
PAGE 121
2019 REMU NE RATI ON REPORT CON TI NU ED
Section one: Remuneration and Human Resources Committee: Chairperson’s letter (continued)
REM UNERATION REPORT
Section two: Overview of remuneration policy
The committee is constantly looking at ways to enhance our remuneration policy in line with shareholders' interests and corporate best practice.
Enhancements to the remuneration policy
What is the impact of the change?
• Tightened recruitment eligibility criteria
• Aligns with corporate best practice
• Enhanced the malus and claw-back provisions, see page 18
• Further reinforces alignment between executive management and
in the
shareholders' interests
• Increased minimum shareholding requirements for members
• Further reinforces alignment between executive management and
of the Executive Committee, see page 22 in the
shareholders' interests
• Enhanced performance management review process,
• Aligns Executive Committee performance and pay
see page 16 in the
Focus areas 2019
In addition to management’s performance achievements for
2019, the committee’s key focus areas included
the following:
• Enhancing our relationships with our shareholders
• Ensuring pay for performance
• Enriching the workplace by building on our
diversity initiatives
• Managing our talent successfully by identifying and placing
internal successors into executive roles
• Successfully continuing to execute the Chairman’s
Young Leaders Programme and enhancing development
opportunities
• Building the relationship with our employees through the
engagement survey 1
1 See in this report
Focus areas 2020
• Enhancement of our remuneration policy by focusing on the
following:
• Confirming that our DSP metrics are still in line with
shareholders' interests and global best practice
• Addressing minimum shareholding requirements for the
Executive Committee (details are included on page 22 of
the .
• Performance management review enhancements (details
are included on page 16 of the )
• Continued focus on succession planning
• Continued engagement with shareholders
• Continued focus on the implementation of our diversity and
inclusion framework.
Expression of gratitude
In closing, I would especially like to thank the members of the committee for a warm welcome and their support; our shareholders for their
constructive engagement and considerable feedback; and our management team who have been relentless in their efforts to create value
for all stakeholders.
Maria Richter
Chairperson: Remuneration and Human Resources Committee
27 March 2020
Geita
PAGE 122
A ngloGold Ashanti’s remuneration approach aims to create a sustainable executive
management team remuneration structure with increased alignment to shareholder
views and interests, underpinned by our strategic objectives and values.
At AngloGold Ashanti, the remuneration policy aims to align with the Company’s strategic objectives while working to deliver on both
internal and external stakeholder priorities, in a manner that recognises uncontrollable market dynamics. This is accomplished by means
of a governance and application framework that primarily aims to attract, motivate and retain a skilled workforce through fair, responsible,
transparent and competitive remuneration.
OUR POLICY IS DESIGNED TO SUPPORT
OUR REMUNERATION PRACTICES
WE DO
• We pay for performance. This is achieved by
placing 66% of the CEO’s earnings at risk.
In addition, the variable pay for executives is
primarily driven by Company performance
• We have a minimum shareholding requirement
policy for the executive management team
• We have a long-term incentive, the DSP with
share deferral awards, which vests over five years.
In the case of an executive leaving AngloGold
Ashanti's employ due to early or normal retirement,
retrenchment or mutual separation, these awards
are not accelerated, however, they vest as per the
normal dates to ensure sustainable and strategic
executive decision making
• We have malus and claw-back provisions
• We have various risk mitigation controls
in place for remuneration programmes across the
Company
• Committee members are all independent
directors
• As all the terms of group policies were adhered
to, the committee was not required to exercise its
discretion
• We retain an independent remuneration
consultant (currently PwC) to advise the
committee
WE DONT
• We do not provide guaranteed variable pay
• We do not grant shares to non-executive
directors
• We do not allow the use of unvested shares as
collateral, nor does the Company use unvested
share amounts towards the calculation of MSR
provisions
• We do not provide financial assistance to
executive directors or prescribed officers
Key principles of our
remuneration policy
In order to continue to support
AngloGold Ashanti’s remuneration
approach, the remuneration policy is
based on the following key principles:
Alignment with strategic
objectives and
shareholders' interests
Ensure that performance metrics
are challenging, sustainable and
cover all aspects of the business
including both financial and non-
financial drivers, and do not reward
excessive risk taking.
Remunerate to motivate and
reward the right behaviour and
performance of employees and
executives
Ensure that the remuneration
structure is aligned to AngloGold
Ashanti’s values and that the
correct governance frameworks
are applied across remuneration
decisions and practices
Promote an ethical culture and
responsible corporate citizenship
Apply the appropriate global
remuneration benchmarks
Ensure that the remuneration of
executive management is fair,
responsible and transparent in
the context of overall employee
remuneration in the organisation
Provide competitive rewards to
attract, motivate and retain highly
skilled executives and staff vital to
the success of the organisation
Use performance measures
that support positive outcomes
across the economic, social and
environmental context in which
AngloGold Ashanti operates
PAGE 123
2019 REMU NE RATI ON REPORT CON TI NU ED
Section two: Overview of remuneration policy (continued)
Remuneration design
When determining appropriate remuneration, the committee considers:
• The potential maximum total remuneration that each member of the executive management team could earn relative to their and the
Company’s performance
• External influences, primarily being:
• shareholder views and recommendations associated with executive management team remuneration
• economic trends
• competitive pressure
• the labour market and the pay-gap between the executive management team and the rest of AngloGold Ashanti's employee population
• Market benchmarks, choosing appropriate benchmarks in a market with similar attributes, including complexity, size and
geographic spread
Remuneration practices are designed to be fair, responsible, transparent and compliant with legislative requirements within all the
jurisdictions in which AngloGold Ashanti operates.
Fair and responsible pay
The process of developing a framework that describes fair, responsible and transparent pay is an evolving journey and, as a group,
AngloGold Ashanti’s remuneration policy reflects the principles of fair and responsible pay as follows:
Remuneration policy element
Fair and responsible pay principle
AngloGold Ashanti’s remuneration is aligned to the
strategic objectives and shareholder outcomes
Remunerate to motivate and reward the right
behaviour and performance of employees and
executive management team
Ensure that performance metrics are challenging,
sustainable and cover all aspects of the business
including both critical financial and non-financial drivers
Ensure that the remuneration structure is aligned
to the organisation's values and that the correct
governance frameworks are applied across
remuneration decisions and practices
Promote an ethical culture and responsible
corporate citizenship
AngloGold Ashanti’s variable pay is directly correlated to the achievement of
measures linked to its scorecard. These metrics are linked to the creation of value
over a mix of short-, medium- and long-term periods. Metrics are approved by
the committee and recommended to the board for approval. AngloGold Ashanti is
transparent with the approved metrics, and these are reported in the annual report.
Individual performance is measured on an annual basis for all employees. These
include both individual and Company performance measures; financial and non-
financial drivers including environmental, social, and governance (ESG) and people
metrics. The DSP incentive scheme includes 37.5% of metrics that measure non-
financial targets. The metrics are reviewed by the committee on an annual basis to
ensure that they are reflective of stretch performance.
All remuneration falls within the ambit of the committee; all senior management
remuneration is subject to approval by the committee. The DSP metrics include
ESG and gender diversity metrics. Safety, community and diversity are included in
AngloGold Ashanti’s values. The incentive scheme furthermore contains a forfeit/
claw-back and malus clause. The executive management team is subject to a
minimum shareholding requirement.
It is imperative that all employees receive a minimum level of remuneration that
enables participation in the economy. At this point, AngloGold Ashanti can confirm
that all employees are paid at least 25% above the respective regional minimum
wage, and in most instances much higher than this. Furthermore, benchmarking
exercises are conducted on an annual basis in each region to ensure that all
employees are paid a market-related salary for the role which they occupy, with
due consideration to levels of performance.
All decisions on remuneration are scrutinised to ensure that they are:
• Impartial and non-discriminatory
• Rational and objective
• Aligned to local legislation
Ensure fair and responsible executive remuneration
in the context of overall employee remuneration in
the organisation
The difference in pay between job levels is justified in the context of the level of
responsibility of the job, complexity of the job, and the consequence and impact
thereof on the organisation. The Gini co-efficient is used to ensure that the income
dispersion between high- and low-income earners is not outside market norms.
Remuneration policy element
Fair and responsible pay principle
Apply appropriate global remuneration
benchmarks
The Mercer Survey is used to benchmark salaries for the executive management
team. For senior management and below, benchmarking is conducted using locally
available reputable surveys including Remchannel (South Africa), Hay evaluation
methodology and others.
Provide competitive reward to attract, motivate
and retain highly skilled executive management
team and employees vital to the success of the
organisation
The executive management team comparison is based on a selected group of
global competitors (page 138) which is reviewed and approved by the committee
on an annual basis to ensure that it remains appropriate. In reviewing the
participants, the committee considers:
• Global spread and complexity
• Nature of business
• Size of the peer group, which should be large enough to create a sufficient
benchmark from which to draw information
Each component of remuneration (base salary, variable pay and benefits) is analysed
and compared with the market information and the overall package is reviewed
accordingly. The market median is generally targeted for most roles, while the
market 75th percentile is targeted for scarce skills.
AngloGold Ashanti tracks the Gini co-efficient from a South African
perspective to ensure that the income dispersion between high-
and low-income earners is not outside market norms.
The analysis is conducted by PricewaterhouseCoopers Inc. (PwC)
as an independent third party and based on the November 2019
analysis, PwC concluded that the Gini co-efficient for AngloGold
Ashanti had deteriorated marginally year on year from 0.43 in 2018
to 0.48 in 2019. This is comparable to the South African mining
industry benchmark of 0.42.
The decline in the Gini co-efficient is mostly attributable to the
reduction in staff in the South African region, as well as to changes
to the executive management profile. In addition to the Gini co-
efficient, AngloGold Ashanti tracks the global wage differential.
The wage differential outcome, as calculated by PwC in November
2019, indicated that the Chief Executive Officer is paid, on a total
rewards basis, approximately 79 times the median of all employees
in AngloGold Ashanti.
This compares favourably to our competitors when considering
AngloGold Ashanti’s geographic footprint and market capital.
Diversity and inclusion
On diversity and inclusion, a framework has been drafted that is
aligned with the UN Global Compact Principles and also with our
own objectives and values. We believe this framework will help
foster the empowerment of all staff, irrespective of race, gender,
ethnicity, religion and sexual orientation. The framework, known
as the Global Diversity and Inclusion Framework, followed a global
gender assessment conducted across all operations to determine
the diversity requirements of each. The document, which has 10
key pillars including organisational culture and management style,
will help us breathe life into our corporate values – particularly
to value diversity – and will assist in continuing to build an
organisation that better reflects the demographics of the societies
in which we operate.
Significant work has been completed in the preparation of our
inclusion in the inaugural Bloomberg Gender-Equality Index (GEI).
This further demonstrates our commitment to paying more than
lip service to addressing the challenge of gender inequality, both
internally and in the communities where we operate.
The group executive management team has 33% female
representation, while 19% of the global workforce is comprised of
females. The AngloGold Ashanti board of directors has 36% female
representation, which represents a 9% improvement from 2018
due to the appointment of Ms Maria Ramos as a non-executive
director in June 2019.
The Company subscribes to various bodies and interest groups
that focus on gender diversity, which has provided the opportunity
to adopt best practices from other organisations, particularly in the
mining industry.
Furthermore, our gender diversity metric which forms part of our
DSP incentive scheme has achieved stretch performance for the
DSP 2019 results. For our DSP 2020 measures, enhanced targets
have been approved by the committee as outlined on page 17
of the , emphasising the Company’s commitment to the
promotion of gender equality and diversity across all operations.
PAGE 124
PAGE 125
2019 REMU NE RATI ON REPORT CON TI NU ED
Section two: Overview of remuneration policy (continued)
2019 remuneration policy and structure
The table alongside sets out the remuneration policy that applies to all employees for 2019. The table details each component’s link to
AngloGold Ashanti's strategy, objectives, performance measurements and the maximum opportunity associated with
each component. The full remuneration policy can be found in the .
Remuneration element
and link to strategy
Base salary
A competitive salary provided
to employees to ensure that
their experience, contribution
and appropriate market
comparisons are fairly
reflected
Pension
Provides a defined
contribution retirement
benefit, in addition to the base
salary, aligned to the schemes
in the respective country in
which the employee operates
Medical insurance
Provides medical aid
assistance, in addition to base
salary, aligned to the schemes
in the respective country in
which the employee operates
Benefits
Provided to ensure broad
competitiveness in the
respective markets, in
addition to base salary
Operation and objective
Maximum opportunity
Performance measures
Executive base salary
increases and increases for
all non-bargaining unit
employees are closely aligned,
where practical. This is
informed by inflation, which
can be matched directly or
above/below consumer price
index (CPI)
Individual performance
on a scale of 1 to 5,
measured against specific
key performance indicators
(KPIs). A CPI increase
pool is approved annually
by the committee. In
high-inflation countries,
individual increases may
be differentiated according
to each individual’s
performance rating. In low-
inflation countries, a flat CPI
is generally applied to all
members of the executive
management team and
employees
• Base salaries are reviewed annually
and are effective from 1 January
each year
• Employee’s base salaries are
determined by considering
performance; market comparison
against companies with a similar
geographic spread; market
complexity, size and industry; and
internal peer comparisons. AngloGold
Ashanti positions guaranteed pay at
the median of the applicable markets
and where there is a shortage of
specialist and/or key technical skills,
will pay higher than the median
• The CEO makes recommendations
on the executive management team
but does not make recommendations
on his own base salary. This is
reviewed by the committee and
approved by the board
• Funds vary depending on jurisdiction
and legislation
24.75% of base salary for the
CEO and lower contributions
for others, dependent on their
retirement schemes
Not applicable
• Provided to all employees
In line with approved policy
Not applicable
through either a percentage of
fee contribution, reimbursement
or Company-provided healthcare
providers
• Benefits are provided based on local
market trends and may include items
such as life assurance, disability
and accidental death insurance,
assistance with tax filing, cash in lieu
of leave not taken (above legislated
minimum leave requirements),
and occasional spousal travel
(for members of the executive
management teams)
In line with approved policy
Not applicable
Variable pay
The DSP, as set out below, is driven by a single scorecard,
comprising short- and long-term metrics. The committee
believes that this scheme has achieved the objectives that it had
set out upon the design of the scheme, namely: simplification,
transparency, increased alignment with shareholder interests,
while remaining compliant with regulatory requirements. The
target metrics for the DSP are reviewed annually to ensure that
they provide suitable stretch, are aligned to the business plan and
budget, and are within benchmark practices of our competitors.
The selection of metrics ensures a balance that mitigates excessive
risk taking, and places focus on items that are within the control
of employees, such as production and reduction of costs. It is the
committee’s view that this overall balance drives the right behaviour,
in line with our values.
The DSP has placed greater focus on cash generation and capital
efficiency by reducing measures that are outside of management’s
control such as the gold price. This is best illustrated as follows, with
metrics not directly impacted by gold price highlighted by the black
arc in the diagram below (37.5% out of the total score of 100%):
All-in sustaining costs
2019 DSP performance measure
n
Pro d u ctio
15%
10%
Normalise
S
E
R
U
S
A
E
M
L
A
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e
t
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n
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q
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t
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(
n
C
R
O
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)
A
b
s
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l
u
t
e
s
h
a
r
e
h
15%
12.5%
6 2 . 5 %
Target
weighting
5 %
1
2
.
5
%
20%
6.25%
6.25%
4.00%
4.00%
1.50
%
1.5
0
%
3.0
0
10%
1
.
0
0
%
2
.
0
0
%
2
.
0
.
5
%
5
0
2
.
0
0
%
0
%
%
2
.
0
1
%
3
4
O
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R
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a
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1
2
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C
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5
S
A F E T Y, H EALTH, ENVIRON
NOT DIRECTLY IM
old
e
r return
6
7
8
11
10
9
Relative total shareholder return
CORE VA L U E :
P E O P L
E
Safety, health, environment and community
1
All injuries frequency rate (AIFR)
2 Major hazard management critical control percentage compliance
3
4
Health – site compliance to the global safety standards on
organisational health, wellness and fitness for work standards
Completion of risk assessments per region, including identification
of critical controls and actions managed to closure
5 Number of reportable environmental incidents at operating mines
6
Greenhouse gas emissions intensity at gold producing operations,
measured in kg CO2e/tonne
7 Community: number of human rights violations
8
Number of business disruptions as a result of
community unrest
Core value: people
9
Strategic successor coverage ratio for leadership roles
10 Key staff retention
11 Gender diversity
PAGE 126
PAGE 127
2019
REMU NE RATI ON REPORT CON TI NU ED
Section two: Overview of remuneration policy (continued)
Alignment of strategy, pay and performance in the DSP scheme
In line with AngloGold Ashanti’s strategic objectives, the DSP metrics were designed to deliver on these key focus areas:
Deferred Share Plan (DSP)
Remuneration element
and link to strategy
Operation and objective
Iduapriem
O pti m is e o v erh e a d, c o sts
a n d c a pital e x p e n diture
Im
pro
ve p
ortfolio q
u
ality
E
n
s
u
r
e
fi
n
a
n
c
i
a
l
fl
e
x
i
b
i
l
i
t
y
Supporting our
strateg y for
sustainable cash
flow impro vements
and returns
Focus on people,
safety and sustainability
n
ality
ptio
m o
-te
g
n
r
aintain lo
M
Strategic focus area:
Description
Optimise overhead,
costs and capital
expenditure
All spending decisions must be thoroughly
scrutinised to ensure they are optimally
structured and necessary to fulfil our core
business objective.
Improve portfolio
quality
We have a portfolio of assets that must be
actively managed to improve the overall mix
of our production base as we strive for a
competitive valuation as a business.
Maintain long-term
optionality
While we are focused on ensuring the
most efficient day-to-day operation of
our business, we must keep an eye on
creating a competitive pipeline of long-term
opportunities.
Focus on people,
safety and
sustainability
People are the foundation of our business. Our
business must operate according to our values
if it is to remain sustainable in the long term. This
includes a drive to improve safety performance,
reduce fatalities, and retain key skills
Supportive DSP metric
• Production
• All-in sustaining costs
• Normalised cash return on equity
• Relative and absolute total shareholder return
• Asset optimisation
• Safety
• Mineral Resource additions pre-depletion
• Ore Reserve pre-depletion
• Production
• All-in sustaining costs
• Relative and absolute total shareholder return
• Mineral Resource additions pre-depletion
• Ore Reserve pre-depletion
• All-in sustaining costs
• Relative and absolute total shareholder return
• People
• Safety
• Environment, health and community
• Relative and absolute total shareholder return
Ensure financial
flexibility
We must ensure our balance sheet
always remains able to meet our core funding
needs.
• Production
• All-in sustaining costs
AngloGold Ashanti
has used a single
incentive for short-
term and long-term
performance.
The DSP is designed
to encourage
employees to meet
strategic short-,
medium- and long-
term objectives that will
enable value delivery
to shareholders, by
achieving defined
Company objectives.
Permanent employees who do not participate in a
production bonus are eligible to participate in the DSP.
Participation is at the discretion of the committee.
A portion of the award is paid in cash as a bonus, and the
balance is delivered as either deferred cash (for Stratum
levels III – middle management – and below) or deferred
shares (for Stratum level IV – senior management – and
above), vesting equally over a period of two to five years
depending on the level.
The total incentive is determined based on a combination
of Company and individual performance measures, defined
annually and weightings are applied to each measure.
The metrics are defined against the objectives that most
strongly drive Company performance and are weighted to
financial outcomes, production, cost and sustainability.
Each metric is weighted and has a threshold, target and
stretch definition based on the Company budget and the
desired stretch targets for the year.
Maximum
opportunity
Details of
threshold,
on-target and
maximum
awards for all
staff are shown
in the table
below.
Note that
below threshold
performance
will result in no
payment.
Performance measures
One set of performance metrics is
used to determine the cash portion
and deferred portion. Future vesting
of the deferred portion is subject to
continued employment.
Details of the performance measure
weightings of Company and
individual KPIs are shown in the
table below.
Company and individual
performance measures are
assessed over the financial year,
with the exception of certain
Company measures that are
measured over a trailing three-year
basis, as indicated below.
The table below sets out the performance measure weightings (Company and individual): threshold, on-target and maximum for the DSP awards.
Performance
measure
weightings *
Threshold
On-target
Maximum
)
d
e
r
r
e
f
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d
+
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s
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c
(
d
r
a
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d
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s
d
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D
d
r
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a
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C
100.0% 150.0% 100.0%
92.5% 135.0% 85.0%
87.0% 124.5% 75.0%
39.0% 65.0% 52.0%
27.0% 51.0% 48.0%
d
r
a
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–
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)
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s
d
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D
d
r
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w
a
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200.0% 300.0% 150.0%
185.0% 270.0% 127.5%
174.0% 249.0% 112.5%
78.0% 130.0% 78.0%
54.0% 102.0% 72.0%
d
r
a
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s
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f
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D
–
–
–
–
–
d
r
a
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f
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D
–
–
–
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–
y
n
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d
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a
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70% 30% 50.0%
60% 40% 42.5%
60% 40% 37.5%
50% 50% 26.0%
50% 50% 24.0%
40% 60% 16.5% 16.5%
40% 60% 12.5% 12.5%
–
–
33.0% 33.0% 33.0%
25.0% 25.0% 25.0%
–
–
66.0% 49.5% 49.5%
50.0% 37.5% 37.5%
)
s
r
a
e
y
(
d
o
i
r
e
p
l
a
r
r
e
f
e
D
5
5
5
3
2
2
2
Employee level
and stratum
CEO (VII) *
CFO (VIH) *
Executive
management (VIL) *
Senior
management (IVH – V)
Senior management (IVL)
Middle management (IIIH)
Middle management
(IIIL – IIIM)
)
d
e
r
r
e
f
e
d
+
h
s
a
c
(
d
r
a
w
a
P
S
D
l
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T
d
r
a
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a
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r
a
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s
d
e
r
r
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f
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D
300.0% 450.0%
277.5% 405.0%
261.0% 373.5%
117.0% 195.0%
81.0% 153.0%
–
–
99.0%
75.0%
PAGE 129
PAGE 128
• Relative and absolute total shareholder return
• Asset optimisation
* Please see amendments to performance measure weightings in the on page 16
2019
Maximum
opportunity
Performance measures
CEO
(Rm)
CEO
(%)
REMU NE RATI ON REPORT CON TI NU ED
Section two: Overview of remuneration policy (continued)
Deferred Share Plan (DSP) (continued)
Remuneration element
and link to strategy
A single set of
performance objectives
are used, reviewed
and approved annually
by the committee,
based on the impact
on AngloGold Ashanti’s
performance.
Operation and objective
At the end of each financial year, the Company and the
CEO’s performance is assessed by both the committee
and the board against the defined metrics to determine
the quantum of the cash portion and the quantum of the
deferred portion namely:
Cash portion:
Base pay x individual performance weighting x on target
cash percentage x individual performance modifier (KPIs:
1 – 5 rating)
+
Base pay x Company performance weighting x on-target
cash percentage x Company performance modifier
Deferred cash/shares:
Base pay x individual performance weighting x on target
deferred percentage x individual performance modifier
(KPIs: 1 – 5 rating)
+
Base pay x Company performance weighting x on-target
deferred percentage x Company performance modifier
The deferred shares are awarded as conditional rights to
shares with dividend equivalents.
Vesting of the deferred portion occurs over a period of
time either a two, three, or five- year period, depending on
the level of the participant.
Company metrics, each with their
own weighting, are:
• Relative total shareholder return*
• Absolute total shareholder return*
• All-in sustaining costs
• Normalised cash return on equity*
• Production
• Ore Reserve pre-depletion
• Mineral Resource additions
pre-depletion
• Safety, health, environment
and community
• People
The committee reserves the right to
apply a safety multiplier to the total
score which can detract from the
final score.
Relative total shareholder return
is measured against a carefully
selected peer group of seven
comparators recommended by the
committee and approved by the
board. The comparator group is
retained for measurement for the full
three-year review period.
Full details of the DSP metrics are
provided in the remuneration policy.
* These measures are on a trailing three-year backward-looking basis or combination of annual and three-year measures
Malus and claw-back
For details on the enhancements, see page 18 in the .
Remuneration scenarios at different
performance levels
The graphs alongside depict the pay mix of the executive
management team in line with the 2019 remuneration policy. The
graphs alongside represent actual outcomes of the DSP detailed
above at below threshold performance (which will result in zero
variable pay), threshold, target and maximum performance.
Graphs alongside represent the pay mix percentage. Note that
the long-term incentive (DSP deferred shares) is payable annually
in five equal tranches.
The committee may determine that an unvested award or part of an
award may not vest, or may determine that any cash bonus, vested
shares, or their equivalent value in cash be returned to the Company
in the event that any of the following matters is discovered:
• A material misstatement of our results which may have caused
the over allocation of cash bonus, deferred cash and deferred
share allocations
• Misconduct, including but not limited to the participant acting
fraudulently or dishonestly or being in material breach of their
obligations to AngloGold Ashanti as described in our Disciplinary
Code and Procedure policy, will result in the lapse of all deferred
cash and deferred shares, both vested and unvested, in line with
the rules of the DSP
• Where there is an error in the calculation of any performance
condition used in the calculation of the performance conditions
which may have resulted in an overpayment
PAGE 130
Below threshold
19
6
Below threshold
100
Threshold
19
6 9
19
Threshold
46
18
36
Target
19
6
20
40
Target
29
24
47
53
49
55
Maximum
19
6
32
0
30
60
65
90
Maximum
20
27
120
150
0
20
40
60
80
100
Base salary Benefits DSP cash DSP deferral
Base salary and benefits DSP cash DSP deferral
CFO
(Rm)
CFO
(%)
Below threshold
10
2
Below threshold
100
Threshold
10
2 4
9
Threshold
47
17
36
Target
10
Maximum
10
2
2
0
10
15
20
9
20
Target
29
22
32
Maximum
20
25
30
40
50
60
0
20
40
60
80
100
Base salary Benefits DSP cash DSP deferral
Base salary and benefits DSP cash DSP deferral
Executive Committee
(Rm)
Below threshold
Threshold
Target
8
8
8
1
1 3
7
Executive Committee
(%)
Below threshold
100
Threshold
48
16
36
1
7
15
Target
30
21
49
Maximum
8
1
11
25
Maximum
20
24
56
0
10
20
30
40
50
0
20
40
60
80
100
Base salary Benefits DSP cash DSP deferral
Base salary and benefits DSP cash DSP deferral
Pay mix for all employees is informed by market surveys. As such, the pay mix for all employees will vary depending on level, jurisdiction
and the legislation in which we operate. Note that the base salary for Executive Committee members is based on the average earnings for
current members.
PAGE 131
2019 REMU NE RATI ON REPORT CON TI NU ED
Section two: Overview of remuneration policy (continued)
Prior period short- and long-term incentives
As highlighted previously, with effect from January 2018, AngloGold Ashanti implemented the DSP which replaced all previous short- and
long-term incentive plans. For purposes of the implementation report, which reflects the incentives payable in prior years, the following
section describes the short- and long-term incentives applicable prior to 2018. The remaining awards under these plans have vested, with a
final payment in March 2020.
Operation and objective
Maximum opportunity
Performance measures
Short-term incentive plan (STIP): Bonus Share Plan (BSP)
STIP metrics were defined annually and
weightings were applied to each measure.
The metrics were defined against the
objectives that most strongly drive Company
performance and were heavily weighted to
production, cost and safety.
Each metric was weighted and had a threshold,
target and stretch definition based on the
Company budget and the desired stretch targets
for the year.
CEO:
Maximum award – 200% of base salary
(cash 80% + deferred equity/cash award 120%)
Target award – 100% of base salary
(cash 40% + deferred equity/ cash award 60%)
Threshold award – 50% of base salary
(cash 20% + deferred equity/ cash award 30%)
Below threshold achievement results in a 0% payment
CFO:
The STIP was delivered as a cash element and a
deferred equity element, with 50% vesting
12 months after the date of issue and remaining
50% vesting on the 24th month after issue.
Maximum award - 175% of base salary
(cash 70% + deferred equity/cash award 105%)
Target award – 87.5% of base salary
(cash 35% + deferred equity/cash award 52.5%)
CEO:
Performance measures:
• 70% Company objectives
• 30% individual KPIs (as
reviewed by the board)
Both Company and individual
performance are assessed over
the financial year
CFO and EXCO:
Performance measures:
• 60% Company objectives
• 40% individual KPIs (as
reviewed by the CEO)
Both Company and individual
performances are assessed over
the financial year.
The Company metrics
measured are:
• Production
• All-in sustaining costs
• Adjusted free cash flow
• Safety, health and environment
• Ore Reserve pre-depletion
• Project delivery/capital
expenditure
Threshold award – 43.75% of base salary
(cash 17.5% + deferred equity/cash award 26.25%)
Below threshold achievement results in a 0% payment
EXCO:
Maximum award – 150% of base salary
(cash 60% + deferred equity/ cash award 90%)
Target award – 75% of base salary
(cash 30% + deferred equity/cash award 45%)
Threshold award – 37.5% of base salary
(cash 15% + deferred equity/cash award 22.5%)
Below threshold achievement results in a 0% payment.
150% of the equity originally invested over a
deferred 24-month period
Quantum based on STIP
achievement
At the end of each financial year, AngloGold
Ashanti's and the CEO’s performances were
assessed by the committee and the board
against the defined metrics to determine the
award to be granted.
Stratum III (middle management) employees and
above, who did not participate in production
bonuses, were eligible to participate.
The deferral was intended to be delivered in
equity, but the committee retained the discretion
to deliver in cash should there be a requirement,
for example, where the shares available for
issue were below the required amount to satisfy
employee allocation needs. Participation in the
STIP was at the discretion of the committee.
Co-Investment Plan (CIP)
The CIP was offered annually to create
shareholdings held by the executive management
team to meet their minimum shareholding
requirements (introduced in 2013). These were
implemented to achieve alignment of shareholder
and executive management team interests.
The executive management team member
invests up to 50% of their net cash bonus in
Company shares, after 12- and 24-month
periods, AngloGold Ashanti offers 150% of the
amount originally purchased by the executive,
in shares purchased on market, provided the
executive management team member remains in
employment and retains the original investment.
Operation and objective
Maximum opportunity
Performance measures
Long-Term Incentive Plan (LTIP)
The LTIP metrics were reviewed and defined
annually in accordance with the strategy. (It is
important to note that any amendment would
be applied on a go-forward basis to newly
allocated awards with no retrospective metric
changes to existing awards).
CEO:
Range of award – 160 – 250% of base salary
CFO:
Range of award – 140 – 200% of base salary
Weightings were provided to the metrics which
must be achieved over a three-year period.
Range of award – 140 – 200% of base salary
EXCO:
The TSR is measured against a carefully
selected peer group of 10 comparators that
was recommended by the committee and
approved by the board. The comparator group
was retained for measurement for the full
three-year review period.
The score against all relevant measures
contributed towards the percentage of total
awards that vested at the end of the
three-year period.
Only senior management from Stratum IV and
above were eligible to participate in the LTIP.
A share under the LTIP was a fully paid
ordinary share in the capital of the Company,
subject to performance vesting restrictions.
The dilution may not exceed 5% of the
Company’s ordinary share capital.
Participation in the LTIP is at the discretion of
the committee.
The TSR is calculated by
the growth in capital from
purchasing a share in the
Company, assuming that
the dividends are reinvested
each time they are paid. The
TSR is then used to rank the
performance of the Company
against its competitors (Barrick,
Gold Fields, Harmony, Kinross,
Goldcorp, Newmont, Gold ETF
(World Gold Council SPDR
classification), Randgold,
Newcrest and Sibanye-
Stillwater).
The remaining 50% performance
measurement are:
• Operational performance
(measured through, all-in cost,
project delivery and asset
optimisation)
• Future optionality (measured
by technology innovation and
Mineral Resource and Ore
Reserve)
• Development and attraction
and retention of people
(measured by the succession
cover ratio and talent
retention)
• A safety multiplier applied
to the total score which can
either enhance or detract
from the final score by
20%. The safety multiplier
cannot however increase the
maximum pay-out above the
defined caps
On 18 February 2020, the committee approved that the 2017 long-term awards be settled as 50% cash settled
and 50% share settled for executive management and 100% cash settled for the remaining eligible participants.
Dividends
At vesting, equivalent cash payments subject
to applicable PAYE, are provided to all
participants of the STIP and LTIP.
In line with AngloGold Ashanti's dividend
payment policy
Paid post vesting
PAGE 132
PAGE 133
2019 REMU NE RATI ON REPORT CON TI NU ED
Section two: Overview of remuneration policy (continued)
Recruitment policy
When recruiting a member of the executive management team, a
comparative benchmarking exercise is undertaken to determine the
size, nature and complexity of the role, and skills availability in the
market prior to making a competitive offer.
The following will be considered when recruiting external hires:
• The committee will also take into account both market practice
and any relevant commercial factors in considering the terms of
the buy-out award;
• A time period is applied to a buy-out with a minimum claw-back
The committee has made enhancements to the recruitment policy
for 2020 and details can be found on page 19 of the .
• External appointments will not be paid more than what they
Termination policy
would have lost at their previous employer within a 12-month
period. The terms of the payment will reflect the nature of the
remuneration forfeited (salary, other contractual payments,
annual bonus and/or share based elements including in-flight
share awards), time horizons and any performance requirements.
The committee will not offer any sign-on bonus for example, a
“golden hello”.
• In the case of share awards forfeited they will have equivalent
performance conditions unless the committee determines
otherwise.
Members of the executive management team, and all permanent
employees have open-ended contracts (except where prescribed
retirement ages apply) with termination periods defined in their
contracts. In addition, incentive scheme rules clearly specify
termination provisions by termination category. In the event of a
termination, the Company has the discretion to allow the employee
to either work out their notice or to pay the guaranteed pay for the
stipulated notice period in lieu of notice.
Guaranteed pay includes base salary and other benefits as detailed
in the table but excludes variable pay.
Voluntary
resignation
Dismissal/
termination
for cause
Normal and early retirement,
retrenchment and death
Mutual
separation
Reasons for termination
Base salary
Pension
Medical
provisions
Base pay will be paid over
the notice period or as a
lump sum
Base pay will
be paid until
employment
ceases
Base pay is paid for a defined period
based on cause and local policy
as employees have different
employment entities
Base pay will be paid over the notice
period or as a lump sum
Pension contributions
for the notice period will
be paid; any lump sum
does not include pension
contributions unless
contractually agreed
Pension
contributions
will be paid until
employment
ceases
Where applicable, medical
provision for the notice
period will be paid; any
lump sum does not include
contributions unless
contractually agreed
Medical
provision/
payment will be
provided until
employment
ceases
Pension contributions will be paid until
employment ceases
Medical provision/payment will be
provided until employment ceases
Pension contributions for the notice
period will be paid; any
lump sum would not include
pension contributions unless
contractually agreed
Where applicable, medical
provision for the notice period
will be paid; any lump sum would
not include contributions unless
contractually agreed
continued overleaf
Iduapriem
PAGE 134
Reasons for termination
(continued)
Voluntary
resignation
Dismissal/
termination
for cause
Applicable benefits may
continue to be provided
during the notice period but
will not be paid on a lump
sum basis
Benefits will
fall away when
employment
ceases
Forfeit, no bonus
No bonus
Unvested awards lapse
Unvested
awards lapse
Benefits
DSP cash
bonus
Deferred
cash awards
Normal and early retirement,
retrenchment and death
Mutual
separation
Benefits will fall away when
employment ceases
Applicable benefits may continue to
be provided during the notice period
but will not be paid on a lump sum
basis
Discretion to pro-rate for period
worked
Discretion to pro-rate for period
worked
The vesting date will be accelerated
to the date of separation and the
participant shall be entitled to receive
a pro-rated deferred cash value taking
into account the period that the
participant has been in employment
during the vesting period.
The vesting date will be accelerated
to the date of separation and the
participant shall be entitled to receive
a pro-rated deferred cash value taking
into account the period that the
participant has been in employment
during the vesting period.
Deferred
share awards
Unvested awards lapse
Unvested
awards lapse
Retrenchment and retirement (early,
normal and late):
Senior managers – upon
termination, the vesting date will be
accelerated to the date of separation
and the participant shall be entitled to
receive pro-rated shares taking into
account the period that the participant
has been in employment during the
vesting period. Vested shares may be
exercised within six months following
termination date.
Executives – upon termination of
employment, vested shares may be
exercised within six months following
termination date. The participant will
continue to hold unvested shares post
termination of employment to vest at
the original vesting date. Upon vesting
of these shares, participant has up to
six months to exercise vested shares.
Death:
All participants – upon death of an
employee, the vesting date will be
accelerated, and the participant’s
estate shall be entitled to receive the full
vested and unvested deferred shares
within 12 months from date of death.
Senior managers – upon
termination, the vesting date will be
accelerated to the date of separation
and the participant shall be entitled to
receive pro-rated shares taking into
account the period that the participant
has been in employment during the
vesting period. Vested shares may be
exercised within six months following
termination date.
Executives – upon termination of
employment, vested shares may be
exercised within six months following
termination date. The participant will
continue to hold unvested shares post
termination of employment to vest at
the original vesting date. Upon vesting
of these shares, participant has up to
six months to exercise vested shares.
PAGE 135
2019 REMU NE RATI ON REPORT CON TI NU ED
Section two: Overview of remuneration policy (continued)
Minimum shareholding requirements
II. An amount equivalent to I above, and inclusive of the value
It is the committee’s opinion that PwC has acted in an independent
The committee is of the opinion that share ownership by executive management team members demonstrates their commitment to
AngloGold Ashanti's success and serves to reinforce the alignment between executive and shareholder interests. With effect from March
2013, a minimum shareholding requirement (MSR) was introduced for the executive management team.
All executive management team members are required to have a minimum shareholding in the Company as per the table below:
Within three years of appointment/from
introduction of MSR
Within six years of appointment/from
introduction of MSR
CEO
100% of net annual base salary
200% of net annual base salary
Executive Management Team 75% of net annual base salary
150% of net base salary
Holding
requirement
Indefinite
Indefinite
The following count towards an individual MSR:
Change in control
• JSE/NYSE shares purchased on the market, either directly or
indirectly, for personal reasons
• Vested shares from AngloGold Ashanti's previous share incentive
schemes (BSP and LTIP and any other historic schemes), as well
as vested shares from the current DSP.
The committee has amended the MSR requirements for 2020.
Details of the changes can be found on page 22 of the .
Service contracts
All members of the executive management team have permanent
employment contracts which entitle them to standard group
benefits as defined by their specific region and participation in the
Company’s DSP.
South African executive management team members are paid
a portion (of up to 40%) of their remuneration offshore which is
detailed under a separate contract. This reflects global roles and
responsibilities and considers offshore business requirements. All
such earnings are subject to tax in South Africa.
Executive management team contracts are reviewed annually and
currently continue to include a change in control provision. The
change in control provision is subject to the following triggers:
• The acquisition of all or part of AngloGold Ashanti; or
• A number of shareholders holding less than 35% of the
Company’s issued share capital consorting to gain a majority of
the board and make management decisions; and
• Executive management team member contracts are either
terminated or their role and employment conditions are curtailed
In the event of a change in control becoming effective, the
executive management team member will in certain circumstances
be subject to both the notice period and the change in control
contract terms.
Executive management employment contracts provide that, in the
event of their employment being terminated as a result of a change
of control, the following is applicable:
I. All salary, benefits and bonuses in lieu of their notice pay;
of any pension contributions that would have been made by
the Company in the notice period following the termination
date (less such tax and national insurance contributions as the
Company is obliged to deduct from the sum);
III. The vesting date will be accelerated to the date of the event
and the participant shall be entitled to receive pro-rated shares
taking into account the period that the participant has been in
employment during the vesting period.
Remuneration consultants
In line with best common practice, the committee which is
comprised solely of independent non-executive directors, engages
independent consultants in relation to remuneration related matters.
The current advisor is PwC whose appointment, terms of reference
and fees payable are determined solely by the committee. PwC
is invited to attend all meetings of the committee and has regular
access to the committee's Chairperson and members.
PwC informs and assists the committee’s deliberations by drawing
on their global reach and perspective on compensation matters
and trends. They brief the remuneration committee on regulatory
developments in South Africa and major international markets.
They comment on technical matters, and generally opine on
the committee’s work. Each year, the committee evaluates the
performance of PwC as the independent advisor and sets their
fees to reflect time commitment, value added and market norms.
For the year ended on 31 December 2019, fees payable to PwC
amounted to c. R786,000 (2018: c. R432,000).
Key focus areas with which PwC assisted in 2019 were:
• Gini co-efficient, wage differential calculations and associated
benchmarking
• Market trends, updates and best practice guidelines
manner, in that they have primarily provided directional and
strategic advice.
The committee also made use of the services and output of Mercer,
who provided global survey data and analysis. Mercer’s charges
amounted to c. R524,000 (2018: c. R472,000).
Non-executive directors’ remuneration policy
AngloGold Ashanti’s non-executive directors (NEDs) continue to
be paid according to their roles. The policy is applied using the
following principles:
• A board fee is paid for the six annual board meetings and board
committee members receive annual committee fees
for participation
• Fees are reviewed annually and increases, if any, are
implemented in July. They are set using a global comparator
group which is derived from companies with similar size,
complexity and geographic spread
• Fees have remained unchanged since 2014
• NEDs receive a travel allowance for travel outside of their home
country for site visits and board meetings
• NEDs are not eligible to receive any short- or long-term
incentives
• Based on market data provided by PwC in accordance with the
selected peer group, a 2% US dollar inflationary increase will be
proposed to the non-executive director fee only for 2020. (Details
of the proposed increase are presented on page 7 of the )
• No increase will be proposed to committee fees as these remain
• Committee training, where required
favourably positioned against the market
Iduapriem
PAGE 136
Iduapriem
PAGE 137
2019 REMU NE RATI ON REPORT CON TI NU ED
Section three: Remuneration implementation report – January to December 2019
T his section of the Remuneration Report explains
the implementation of the remuneration policy by
providing details of the remuneration paid
to members of the executive management team and
non-executive directors for the financial year ended
31 December 2019.
Executive management team pay
2019 saw the gold price and share price increase. Cost control
remains a key imperative and the external market reflected
similar challenges.
On behalf of AngloGold Ashanti, Mercer conducts a biennial
bespoke survey of executive management team remuneration.
For 2019, the committee reviewed the comparator group against
AngloGold Ashanti to ensure that changes in the market had not
led to variances that made the current matches inappropriate. The
review consisted of a detailed analysis of companies who it was felt
were appropriate for inclusion in the benchmark.
The companies included in the comparator group were ranked in
terms of a number of criteria selected in areas which were, aligned
with AngloGold Ashanti.
2019 Comparator benchmark group
Information regarding CEO’s remuneration on
joining AngloGold Ashanti
At the Annual General Meeting (AGM) held on 9 May 2019,
58.51% of shareholder voting supported implementation of the
remuneration report compared with support of 98.31% for the
remuneration policy. This level of support necessitated engagement
by the committee Chairperson with 30% of investors to better
understand their perspectives and ensure that our remuneration
practices and reporting reflect their views.
As set out in the committee Chairperson’s letter, one of the main
areas for engagement with shareholders related to the sign-on
terms accompanying Mr Kelvin Dushnisky’s appointment. The
Chairperson committed to providing a detailed explanation of the
approach the committee took in determining the above payments,
to clarify the disclosure in our 2018 report.
As previously disclosed in our 2018 Remuneration Report,
Mr Dushnisky’s payments at joining included:
• A pro-rata sign-on cash payment of $800,000 in lieu of his
previous company’s 2018 performance year
• A sign-on award valued at $4,200,000, made up of the following
components and terms as per the tables below:
Anglo American Platinum
Agnico Eagle Mines
Barrick Gold Corporation
B2Gold Corporation
Eldorado Gold Corporation
Evolution Mining Limited
Gold Fields Limited
IAMGOLD Corporation
Impala Platinum Holdings Limited
Kinross Gold Corporation
Newcrest Mining Limited
Newmont / Goldcorp
Sibanye-Stillwater Limited
South32
Yamana Gold Incorporated
Vesting date
1 January 2019
1 January 2020
Total
Value of cash sign-on bonus in US$
400,000
1,000,000
1,400,000
Number of
AngloGold
Ashanti shares
Vesting date
Value of
shares (US$) (1)
Value of
shares (ZAR)
1 January 2019
1,400,000
20,188,000
175,877
1 January 2020
700,000
10,094,000
1 January 2021
700,000
10,094,000
87,939
87,939
Total
2,800,000
40,376,000
351,755
(1)
Value of shares is based on award date and not vesting date
calculated on a five-day VWAP prior to Mr Dushnisky’s starting date
of 1 September 2018. In accordance with the above tables, a cash
payment of $400,000 was made to Mr Dushnisky on 1 January 2019
and 175,877 AngloGold Ashanti shares vested on 1 January 2019.
Cash payment ($800,000)
The sign-on cash payment of $800,000 was in lieu of the annual
bonus which Mr Dushnisky was eligible for from his previous
employer, Barrick Gold, but would ordinarily have been forfeited on
termination of his employment. Notwithstanding his departure, the
Remuneration Committee of Barrick Gold exercised their discretion to
make an incentive payment to Mr Dushnisky post the cessation of his
employment for the flexibility shown by him regarding his departure
date and the delivery of agreed matters of strategic importance as
disclosed in the Barrick Gold 2019 Information Circular published in
March 2019 relating to the financial year ending 31 December 2018.
In light of this, Mr. Dushnisky has voluntarily repaid the $800,000
sign-on cash payment to the Company.
Sign-on payment ($4,200,000)
While the payment of $4.2m was disclosed in the 2018
Remuneration report, it was incorrectly described as a share buy-
out. The correct position is that, at the time of the negotiations,
Mr Dushnisky expected corporate activity under discussion at the
time by his former employer that would entitle him to a substantial
contractual severance payment. He was prepared to wait for this
activity to materialise and for the payment to become due, after
which time he would join AngloGold Ashanti.
However, in light of AngloGold Ashanti’s requirement that he start
immediately after the departure of the former CEO, the parties
agreed to a value that took into account Mr Dushnisky’s expected
loss of compensation and his willingness to start at the earlier date.
Annual salary review
In 2019, the January annual increases resulted in each member of
the executive management team receiving an increase in line with
the CPI in their respective jurisdictions. This is in line with increases
for all AngloGold Ashanti employees. The respective CPI increases
applicable to the executive management team were as follows:
Region
Australia
South Africa
USA
Increase
3.0%
5.7%
2.5%
All retirees received the standard payments as per the retirement
policies in place at AngloGold Ashanti.
Mr Sicelo Ntuli was appointed Executive Vice President: Chief
Operating Officer: Africa Operations, and Mr Stewart Bailey was
appointed Executive Vice President: Corporate Affairs, effective
1 January 2019. Both were internal promotions, confirming our
commitment to succession planning and developing internal talent.
Mr Pierre Chenard was appointed Executive Vice President:
Strategy and Corporate Development, on the following terms:
• Base pay: R8,380,580 per annum
• Medical aid insurance through BUPA
• International pension scheme membership
• A sign-on award, which Mr Chenard received on appointment
for compensation forfeited from his previous employer. This was
based on the fair value of unvested share awards which lapsed
on the cessation of his employment and other remuneration
and benefits as detailed below. The buy-out award for Mr
Chenard took into account the proportionate achievement of the
relevant performance conditions and the time elapsed from the
date of grant under the terms of the former employer's share
scheme. As such, it was concluded that the buy-out award
featured no further corporate performance conditions other than
new time-based vesting conditions.
Vesting date
1 April 2019
1 April 2020
Total
Vesting date
1 April 2020
1 April 2021
Total
Value of cash sign-on
bonus in US$
Value of cash sign-on
bonus in ZAR
225,000
225,000
450,000
3,165,000
3,165,000
6,330,000
Value of
shares
in US$ (1)
450,000
450,000
Value of
shares
in ZAR
Number of
AngloGold
Ashanti shares
6,513,255
6,513,255
32,475
32,476
64,951
900,000
13,026,510
Executive movements
In 2019, the following executive management team
members retired:
• Mr Charles Carter, Executive Vice President: Strategy, on
31 March 2019
• Mr Chris Sheppard, Chief Operating Officer: South Africa on
15 March 2019
• Mr David Noko, Executive Vice President: Group Sustainable
Development, on 28 February 2019
(1)
Value of shares is based on award date and not vesting date
calculated on a five-day VWAP prior to Mr Chenard’s starting date of
1 April 2019. In accordance with the above tables a cash payment
of R3,165,000 was made to Mr Chenard on start date, 1 April 2019.
Shares will vest in accordance with the JSE Listings Requirements.
The table overleaf represents the executive management team’s
remuneration for 2019 and 2018. It comprises an overview of all the
pay elements received by the executive management team for the
12-month periods ended 31 December 2019 and 31 December
2018 respectively.
PAGE 138
PAGE 139
2019 REMU NE RATI ON REPORT CON TI NU ED
Section three: Remuneration implementation report – January to December 2019 (continued)
Executive directors’ and prescribed officers’ remuneration
The following are definitions of terminology used in the adoption of the reporting requirements under King IV:
The tables below illustrate the single total figure of remuneration and the total cash equivalent received reconciliation of executive directors
and prescribed officers as prescribed by King IV. They provide an overview of all the pay elements available to the executive management
team for the year ended 31 December 2019.
Reflected
In respect of the DSP and LTIP plans, remuneration is reflected when
performance conditions have been met during the reporting period.
Settled
This refers to remuneration that has been included in prior reporting
periods and has now become payable (may not yet have been
paid) to the executive in the current period.
Single total figure remuneration
Base salary
ZAR
denominated
portion
ZAR '000
US$/AUD
denominated
portion (1)
ZAR '000
Pension
scheme benefits
Once-off
relocation costs
Cash in lieu of
dividends
ZAR '000
ZAR '000
ZAR '000
–
–
5,585
5,246
5,585
5,246
3,879
–
–
–
2,933
–
–
–
1,377
4,795
869
4,931
4,607
–
4,481
4,196
1,159
5,213
4,944
4,778
18,608
5,740
3,981
3,446
22,589
9,186
2,560
–
2,791
9,557
3,900
–
9,074
8,693
7,945
3,151
396
2,083
2,871
–
3,184
2,757
528
2,202
2,337
1,569
24,249
23,913
35,586
30,012
4,648
1,421
779
725
5,427
2,146
–
–
5,524
1,381
–
–
251
248
251
248
117
658
631
–
958
869
160
696
910
793
8,802
4,893
2,726
–
–
–
2,726
–
–
–
–
–
1,270
–
–
–
1,135
–
–
–
–
–
–
–
–
–
–
–
2,405
–
142
–
194
124
336
124
37
–
–
131
–
–
163
116
64
37
17
92
36
–
169
88
169
40
158
19
813
523
Executive directors
KPM Dushnisky
KC Ramon
Total executive directors
Prescribed officers
SD Bailey
CE Carter (6)
PD Chenard (5) (7)
GJ Ehm
L Eybers
DC Noko (6)
S Ntuli
ME Sanz Perez
CB Sheppard (6)
TR Sibisi
Total prescribed officers
2019
2018
2019
2018
2019
2018
2019
2018
2019
2018
2019
2018
2019
2018
2019
2018
2019
2018
2019
2018
2019
2018
2019
2018
2019
2018
2019
2018
Awards earned during the period reflected but not yet settled
CSLTIP
awards (4)
ZAR '000
Sign-on awards
granted
ZAR '000
Single total figure remuneration
ZAR '000
US$ '000 (8)
Other
benefits (2)
ZAR '000
2,578
127
893
1,038
3,471
1,165
1,160
–
2,277
855
1,729
–
611
578
2,310
1,333
1,110
314
343
–
68
62
830
349
61
94
DSP
awards (3)
ZAR '000
61,842
19,586
29,135
26,097
90,977
45,683
18,087
–
–
27,026
18,362
–
25,329
23,577
25,054
21,985
–
19,307
21,041
–
20,567
19,238
–
20,410
19,638
18,183
10,499
3,585
148,078
149,726
124,827
63,615
–
–
33,064
10,316
33,064
10,316
5,917
–
–
10,316
–
–
33,064
10,316
29,160
1,719
–
10,316
7,526
–
26,447
10,316
–
10,316
22,713
10,316
–
73,400
–
–
–
73,400
–
–
–
–
19,356
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
19,356
–
90,544
100,274
73,631
46,992
164,175
147,266
31,640
–
10,592
49,266
47,550
–
68,492
43,528
67,296
33,268
2,509
37,701
37,055
–
55,874
37,526
2,846
39,226
50,761
35,752
374,615
276,267
6,268
7,570
5,097
3,547
11,365
11,117
2,190
–
733
3,719
3,292
–
4,742
3,286
4,659
2,511
174
2,846
2,565
–
3,868
2,833
197
2,961
3,514
2,699
25,934
20,855
(1) Salary denominated in US$/AUD for global roles and responsibilities converted to ZAR on payment date.
(2)
(3)
Other benefits include health care, group personal accident, disability, funeral cover, accommodation allowance, airfare and surplus leave encashed. Surplus leave
days accrued are automatically encashed unless work requirements allow for carry over.
The fair value of the DSP comprises a cash bonus and share awards for the year ended 31 December 2019 with the cash bonus payable in February 2020 and the
share awards allocated in February 2020, vesting over a five-year period in equal tranches.
(4)
The fair value of the CSLTIP granted in 2017 with a three-year performance period ended 31 December 2019. The awards vested on 1 March 2020.
(5)
(6)
(7)
PD Chenard was awarded a sign-on award of ZAR19,356m at start date,1 April 2019, of which ZAR6.33m will be settled in cash with 50% payable upfront,
the balance on 1 April 2020 and ZAR13,026m will be settled in shares to vest over a two-year period in equal tranches in accordance with the JSE Listing
Requirements.
All salary payments (including salary, performance related payments, pension and other benefits) for CE Carter (retired 28 March 2019), DC Noko (retired 28 February
2019) and CB Sheppard (retired 15 March 2019) are pro-rated in accordance with their retirement dates.
All salary payments (including salary, performance related payments, pension and other benefits) for PD Chenard are pro-rated in accordance with his start date,
1 April 2019.
(8)
Convenience conversion to US$ at the year-to-date average exchange rate of $1:R14.445 (2018: $1:R13.247).
PAGE 140
PAGE 141
2019
REMU NE RATI ON REPORT CON TI NU ED
Section three: Remuneration implementation report – January to December 2019 (continued)
Total cash equivalent received reconciliation
Awards earned during the period reflected but
not yet settled
BSP, CIP and LTIP share awards settled
Sign-on cash settled
Sign-on shares settled
Single
total figure
remuneration
DSP awards
(1)
CSLTIP
awards (2)
Sign-on
awards
granted
DSP 2018
cash portion
settled
Grant fair
value (4)
Market
movement
since grant
date (4)
Vesting fair
value (4)
Grant fair value (4)
Currency
movement since
grant date (4)
Settlement fair
value (4)
Grant fair value (4)
Market movement
since grant date (4)
Vesting fair
value (4)
Total cash equivalent
received reconciliation
ZAR '000
ZAR '000
ZAR '000
ZAR '000
ZAR '000
ZAR '000
ZAR '000
ZAR '000
ZAR '000
ZAR '000
ZAR '000
ZAR '000
ZAR '000
ZAR '000
ZAR '000
US$ '000 (5)
Executive directors
KPM Dushnisky
KC Ramon
Total executive directors
Prescribed officers
SD Bailey
CE Carter
PD Chenard (3)
GJ Ehm
L Eybers
DC Noko
S Ntuli
ME Sanz Perez
CB Sheppard
TR Sibisi
Total prescribed officers
2019
2018
2019
2018
2019
2018
2019
2018
2019
2018
2019
2018
2019
2018
2019
2018
2019
2018
2019
2018
2019
2018
2019
2018
2019
2018
2019
2018
90,544
100,274
73,631
46,992
164,175
147,266
31,640
–
10,592
49,266
47,550
–
68,492
43,528
67,296
33,268
2,509
37,701
37,055
–
55,874
37,526
2,846
39,226
50,761
35,753
374,615
276,267
(61,842)
(19,586 )
(29,135)
(26,097)
(90,977)
(45,683)
(18,087)
–
–
(27,026)
(18,362)
–
(25,329)
(23,577)
(25,054)
(21,985)
–
(19,307)
(21,041)
–
(20,567)
(19,238)
–
(20,410)
(19,638)
(18,183)
(148,078)
(149,726)
–
–
(33,064)
(10,316)
(33,064)
(10,316)
(5,917)
–
–
(10,316)
–
–
(33,064)
(10,316)
(29,160)
(1,719)
–
(10,316)
(7,526)
–
(26,447)
(10,316)
–
(10,316)
(22,713)
(10,316)
(124,827)
(63,615)
–
(73,400)
–
–
–
(73,400)
–
–
–
–
(16,191)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(16,191)
–
7,119
–
8,378
4,607
15,497
4,607
2,613
–
8,778
4,411
–
–
7,113
4,116
6,701
3,691
5,851
3,173
3,269
–
5,864
3,159
6,186
3,354
5,495
2,886
51,870
24,790
–
–
21,504
14,843
21,504
14,843
4,066
–
26,276
13,804
–
–
19,622
13,163
7,463
4,466
24,906
10,712
3,956
–
18,839
10,181
25,446
4,737
17,709
2,251
148,283
59,314
–
–
2,849
(4,384)
2,849
(4,384)
724
–
3,913
(4,079)
–
–
(198)
(3,723)
2,825
(1,389)
4,316
(2,943)
1,046
–
1,460
(2,774)
4,338
(1,406)
876
(652)
19,300
(16,966)
–
–
24,353
10,459
24,353
10,459
4,789
–
30,188
9,725
–
–
19,424
9,439
10,289
3,077
29,222
7,769
5,002
–
20,299
7,407
29,783
3,331
18,585
1,599
167,581
42,347
(1)
The fair value of the DSP comprises a cash bonus and share awards for the year ended 31 December 2019 with the cash bonus payable in February 2020
and the share awards allocated in February 2020, vesting over a five-year period in equal tranches.
(2)
The fair value of the CSLTIP granted in 2017 with a three-year performance period ending 31 December 2019. The awards vested on 1 March 2020.
(3)
(4)
PD Chenard was awarded a sign-on award of ZAR19,356m at start date,1 April 2019, of which ZAR6.33m will be settled in cash with 50% payable upfront,
the balance on 1 April 2020 and ZAR13,026m will be settled in shares to vest over a two-year period in equal tranches in accordance with the JSE Listing
Requirements.
Reflects the sum of all the grant fair value, the sum of all the share price movements since grant to vesting date and the sum of all the vesting fair value for
the vested CSLTIP 2016, vested BSP 2017 and 2018, vested CIP 2017 and 2018 vested sign-on share awards and difference in the currency movements
for the vested sign-on cash settled award. These values include awards vested early for CE Carter, DC Noko and CB Sheppard in accordance with their
retirement dates as per as per scheme rules.
(5)
Convenience conversion to US$ at the year-to-date average exchange rate of $1:R14.445 (2018: $1:R13.247).
Details of the share incentive scheme awards follow.
17,616
–
–
–
17,616
–
(1,010)
–
–
–
(1,010)
16,606
–
–
–
16,606
20,188
–
–
–
20,188
–
18,357
–
–
–
18,357
38,545
–
–
–
38,545
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
90,972
7,288
44,163
25,645
135,135
32,933
15,038
–
49,558
26,060
12,997
–
36,636
23,190
30,072
16,332
37,582
19,020
16,759
–
35,023
18,538
38,815
15,185
32,490
11,739
304,970
130,064
6,298
550
3,057
1,936
9,355
2,486
1,041
–
3,431
1,967
900
–
2,536
1,751
2,082
1,233
2,602
1,436
1,160
–
2,425
1,399
2,687
1,146
2,249
886
21,113
9,818
PAGE 142
PAGE 143
2019
REMU NE RATI ON REPORT CON TI NU ED
Section three: Remuneration implementation report – January to December 2019 (continued)
Number of unvested awards and movement during the reporting period
Number of unvested awards and movement during the reporting period continued
Balance at
1 January
Granted
Vested,
deemed
settled
Forfeited/
lapsed
Balance at
31 December
Fair value
of granted
awards (1)
Fair value
of vested
awards (2)
Fair value
of unvested
awards at
31 December (3)
ZAR '000
ZAR '000
ZAR '000
Sign-on share awards
Executive directors
KPM Dushnisky
2019
351,755
–
175,877
Total executive
directors
Prescribed officers
PD Chenard
Total prescribed
officers
Total sign-on
share awards
2018
2019
2018
2019
2018
2019
2018
2019
2018
–
351,755
–
351,755
–
175,877
–
351,755
–
–
–
–
64,951
64,951
–
–
–
–
–
–
351,755
64,951
175,877
–
–
–
–
–
–
–
–
–
175,878
–
38,545
351,755
40,376
–
175,878
–
38,545
351,755
40,376
–
64,951
13,026
–
–
64,951
13,026
–
–
–
–
–
–
240,829
13,026
38,545
55,665
63,931
55,665
63,931
20,557
–
20,557
–
76,222
63,931
–
351,755
–
–
351,755
40,376
–
(1)
The fair value of granted awards represents the value of awards, calculated using a five business-day volume weighted average share price prior to
grant date. The share awards were granted on start date and will vest over a two-year period in equal tranches in accordance with the JSE Listing
Requirements.
(2) The fair value of KPM Dushnisky's vested awards represents the value received on settlement dates, 20 and 21 February 2019.
(3) The fair value of unvested awards is calculated using the closing share price as at 31 December.
Balance at
1 January
2019
Granted
Vested,
deemed
settled
Forfeited/
lapsed
Balance at
31 December
2019
Fair value
of granted
awards (1)
Fair value
of vested
awards (2)
Fair value
of unvested
awards at
31 December
2019 (3)
ZAR '000
ZAR '000
ZAR '000
–
–
–
67,742
89,782
157,524
–
–
–
–
–
–
–
–
–
–
–
19,196
98,451
–
82,037
77,380
67,548
24,006
67,712
71,409
63,424
571,163
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
67,742
13,848
89,782
18,353
157,524
32,201
–
19,196
3,924
–
–
–
–
–
–
–
–
–
–
98,451
20,125
–
–
82,037
16,770
77,380
15,818
67,548
13,808
24,006
4,907
67,712
13,842
71,409
14,597
63,424
12,965
571,163
116,756
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
940,504
14,623
55,208
870,673
192,258
– 1,669,191
14,623
55,208
1,599,360
341,215
4,269
4,269
21,440
28,416
49,856
6,076
31,160
–
25,965
24,491
21,379
7,598
21,431
22,601
20,074
180,775
275,568
506,199
DSP awards
Executive directors
KPM Dushnisky
KC Ramon
Total executive directors
Prescribed officers
SD Bailey
CE Carter
PD Chenard
GJ Ehm
L Eybers
DC Noko
S Ntuli
ME Sanz Perez
CB Sheppard
TR Sibisi
Total prescribed officers
Other management
Total DSP awards
(1)
The fair value of granted awards represents the value of awards, calculated using a five business day volume weighted average share price prior to grant
date, 21 February 2019.
(2) The fair value of vested awards represents the value deemed received on settlement date.
(3) The fair value of unvested awards is calculated using the closing share price as at 31 December 2019.
PAGE 144
PAGE 145
2019 REMU NE RATI ON REPORT CON TI NU ED
Section three: Remuneration implementation report – January to December 2019 (continued)
Number of unvested awards and movement during the reporting period continued
Number of unvested awards and movement during the reporting period continued
Balance at
1 January
Granted
Vested,
deemed
settled
Forfeited/
lapsed
Balance at
31 December
Fair value
of granted
awards (1)
Fair value
of vested
awards (2)
Fair value of
unvested awards
at 31 December (3)
ZAR '000
ZAR '000
ZAR '000
CIP awards
Balance at
1 January
Granted
Matched
Forfeited/
lapsed
Balance at
31 December
Fair value
of granted
awards (1)
Fair value
of matched
awards (2)
Fair value of
unvested awards
at 31 December (3)
ZAR '000
ZAR '000
ZAR '000
BSP awards
Executive directors
KPM Dushnisky
KC Ramon
2019
2018
2019
2018
–
–
77,073
–
–
–
–
–
49,256
58,040
55,634
36,601
Total executive directors 2019
77,073
–
49,256
2018
58,040
55,634
36,601
–
–
–
–
–
–
–
–
–
–
27,817
77,073
27,817
77,073
8,306
–
–
–
–
–
–
–
10,034
6,628
3,922
–
10,034
6,628
3,922
–
–
–
2,903
–
11,664
–
–
8,804
14,008
8,804
14,008
2,629
–
–
67,173
5,704
4,033
12,209
Prescribed officers
SD Bailey
CE Carter (4)
PD Chenard
GJ Ehm
L Eybers
DC Noko (4)
S Ntuli
ME Sanz Perez
CB Sheppard (4)
TR Sibisi
2019
2018
2019
2018
2019
2018
2019
2018
2019
2018
2019
2018
2019
2018
2019
2018
2019
2018
2019
2018
22,549
–
67,173
–
–
–
14,243
–
58,055
9,118
56,933
47,873
37,633
–
–
62,783
–
–
–
–
–
39,786
49,381
45,993
32,591
53,626
–
31,338
23,627
44,575
14,576
–
–
–
–
–
–
–
–
–
22,997
62,783
22,288
53,626
52,531
–
44,415
8,116
–
37,666
38,718
23,853
28,221
–
17,584
–
52,842
–
–
–
33,770
39,394
38,143
24,695
–
–
–
–
–
52,531
10,637
–
19,072
52,842
55,534
–
47,374
8,160
–
34,281
40,931
19,678
47,221
–
29,516
23,621
35,410
11,810
–
–
–
55,534
17,705
47,221
–
–
–
5,480
–
5,311
–
4,613
–
–
–
4,544
–
4,877
–
4,219
–
–
8,109
3,492
6,419
1,562
9,070
2,556
3,587
–
6,879
2,646
9,584
2,109
6,021
1,266
Total prescribed officers 2019
442,480
–
316,081
25,394
101,005
–
64,236
2018
264,903
291,643
164,836
–
391,710
34,748
17,664
Other management
2019 2,482,900
– 1,595,362
70,586
816,952
–
321,706
2018 2,276,381 2,170,797 1,554,165
359,343
2,533,670
258,629
166,752
Total BSP awards
2019 3,002,453
– 1,960,699
95,980
945,774
–
395,976
2018 2,599,324 2,518,074
1,755,602
359,343
3,002,453
300,005
188,338
–
–
7,279
11,411
7,054
9,747
–
9,548
3,367
–
6,036
9,604
–
10,093
5,604
8,582
31,969
71,194
258,565
460,495
299,338
545,697
–
–
–
–
–
–
–
–
–
–
–
–
Executive directors
KPM Dushnisky
KC Ramon
2019
2018
2019
2018
–
–
23,270
–
–
–
–
–
14,795
17,817
16,950
11,497
Total executive directors 2019
23,270
–
14,795
2018
17,817
16,950
11,497
Prescribed officers
SD Bailey
CE Carter
PD Chenard
GJ Ehm (4)
L Eybers
DC Noko (5)
S Ntuli
ME Sanz Perez
CB Sheppard (5)
TR Sibisi
2019
2018
2019
2018
2019
2018
2019
2018
2019
2018
2019
2018
2019
2018
2019
2018
2019
2018
2019
2018
–
–
949
1,897
–
–
16,500
–
–
–
–
–
–
–
–
–
949
948
–
–
–
16 500
9,000
12,000
4,500
16,788
–
10,198
7,218
13,179
3,609
15,370
–
15,370
12,929
10,606
8,165
–
–
16,039
–
–
–
–
–
10,297
9,109
11,484
4,554
14,358
–
14,358
8,016
10,350
9,304
6,127
–
6,240
4,008
6,184
3,063
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
8,475
23,270
8,475
23,270
–
–
–
949
–
–
–
16,500
6,590
16,788
–
–
–
–
1,889
–
1,889
–
–
–
–
–
–
–
–
–
3,004
1,304
3,004
1,304
–
–
175
107
–
–
–
1,379
505
–
1,983
1,501
394
–
2 974
15,370
1,195
930
–
–
5,742
16,039
–
–
–
–
1,298
–
–
2,104
496
–
2,855
14,358
1,121
–
676
442
1,249
334
3,120
9,304
15,452
89,308
–
–
–
–
2,682
4,229
2,682
4,229
–
–
–
172
–
–
–
2,999
2,086
3,051
–
2,793
–
–
1,817
2,915
–
2,610
987
1,691
4,890
–
–
7,572
20,460
Total prescribed officers
2019
89,308
–
57,356
16,500
–
11,340
Other management
2018
2019
2018
–
–
–
–
–
–
–
–
–
–
Total CIP awards
2019 112,578
72,151
16,500
23,927
–
–
–
–
–
14,344
54,296
63,859
28,847
7,170
3,208
16,231
2018
72,113
80,809
40,344
–
112,578
9,059
4,512
(1) The fair value of granted awards represents the value of awards, calculated using a five business-day volume weighted average share price prior to grant
date. Closed scheme, no awards granted in 2019.
(2)
The fair value of vested awards represents the value deemed received on settlement date.
(3) The fair value of unvested awards is calculated using the closing share price as at 31 December.
(1)
The fair value of granted awards represents the value of awards, calculated using the original investment share price on purchase date. Closed scheme, no
awards granted in 2019.
(2)
The fair value of matched awards represents the value received on settlement dates.
(3)
The fair value of unvested awards is calculated using the closing share price as at 31 December.
(4)
Includes awards vested early and lapsed for CE Carter, DC Noko and CB Sheppard in accordance with their retirement dates, as per scheme rules.
(4)
These awards lapsed for GJ Ehm, in line with the rules of the scheme.
(5)
Includes awards vested early for DC Noko and CB Sheppard in accordance with their retirement dates, as per scheme rules.
PAGE 146
PAGE 147
2019 REMU NE RATI ON REPORT CON TI NU ED
Section three: Remuneration implementation report – January to December 2019 (continued)
Number of unvested awards and movement during the reporting period continued
Minimum shareholding requirements
Balance at
1 January
Granted
Vested,
deemed
settled
Forfeited/
lapsed
Balance at
31 December
Fair value
of granted
awards (1)
Fair value
of vested
awards (2)
Fair value
of unvested
awards at
31 December (3)
ZAR '000
ZAR '000
ZAR '000
LTIP awards
Executive directors
KPM Dushnisky
KC Ramon
Total executive directors
Prescribed officers
SD Bailey
CE Carter (4)
PD Chenard
GJ Ehm
L Eybers
DC Noko (4)
S Ntuli
ME Sanz Perez
CB Sheppard (4)
TR Sibisi
2019
2018
2019
2018
2019
2018
2019
2018
2019
2018
2019
2018
2019
2018
2019
2018
2019
2018
2019
2018
2019
2018
2019
2018
2019
2018
–
–
230,595
345,232
230,595
345,232
39,793
–
230,595
352,962
–
–
230,595
349,831
117,535
142,113
208,850
302,693
40,173
–
208,463
301,898
213,928
231,328
195,971
195,971
Total prescribed officers
2019 1,485,903
2018 1,876,796
Other management
2019 2,099,263
2018 4,266,105
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
56,760
63,240
110,595
47,047
67,590
230,595
56,760
63,240
110,595
47,047
67,590
230,595
9,460
10,540
19,793
–
–
93,205
137,390
–
–
50,219
72,148
230,595
–
–
–
–
–
–
56,760
63,240
110,595
48,934
70,302
230,595
9,460
10,540
97,535
10,086
14,492
117,535
85,036
123,814
–
38,513
55,330
208,850
7,095
7,905
25,173
–
–
–
56,760
63,240
88,463
38,345
55,090
208,463
87,220
126,708
–
7,140
10,260
213,928
56,760
63,240
75,971
–
–
195,971
461,756
606,617
417,530
193,237
277,622
1,405,937
510,922
635,904
952,437
634,493 1,452,383
2,179,229
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
11,315
5,232
11,315
5,232
1,886
–
18,349
5,585
–
–
11,315
5,442
1,886
1,122
17,178
4,283
1,414
–
11,315
4,264
17,344
780
11,315
–
–
–
35,003
41,911
35,003
41,911
6,264
–
–
41,911
–
–
35,003
41,911
30,870
21,362
–
37,958
7,967
–
27,999
37,888
–
38,881
24,045
35,618
92,002
21,476
101,852
70,562
205,169
97,270
132,148
255,529
301,446
396,075
468,597
693,515
Total LTIP awards
2019 3,815,761
– 1,029,438 1,305,761
1,480,562
2018 6,488,133
–
874,777 1,797,595
3,815,761
(1) The fair value of granted awards represents the value of awards, calculated using a five business-day volume weighted average share price prior to grant
date. Closed scheme, no awards granted in 2019.
(2) The fair value of vested awards represents the value deemed received on settlement date.
(3) The fair value of unvested awards is calculated using the closing share price as at 31 December.
(4)
Includes awards vested early and lapsed for CE Carter, DC Noko and CB Sheppard in accordance with their retirement dates, as per scheme rules.
For the purposes of the MSR calculation, only fully owned and vested awards will count towards the determination of the MSR.
Executive
Executive directors
KPM Dushnisky
KC Ramon
Prescribed officers
SD Bailey (1)
PD Chenard (2)
GJ Ehm
L Eybers
S Ntuli (1)
ME Sanz Perez
TR Sibisi
Six-year target
achievement date
MSR holding as at
31 December 2019
as a percentage
of net base pay
Three -year MSR target
achievement percentage
Six-year MSR target
achievement percentage
March 2024
March 2021
March 2025
March 2026
March 2019
March 2023
March 2025
March 2019
March 2022
279
507
81
0
321
169
34
532
155
100
75
75
75
75
75
75
75
75
200
150
150
150
150
150
150
150
150
(1) Appointed prescribed officer with effect from 1 January 2019 and the three-year MSR achievement is only due in March 2022.
(2) Appointed prescribed officer with effect from 1 April 2019 and the three-year MSR achievement is only due in March 2023.
DSP performance outcomes
The DSP measures resulted in an achievement of 103.25% out of 100%.
The table below summarises AngloGold Ashanti’s remuneration metrics, their weightings, and performance against these metrics applicable
to the DSP during 2019:
DSP performance measure
Financial
Measures
Relative total
shareholder return
Weighting
10.00%
Threshold
measures
Target measures
Stretch measures
Actual
achievement
2019
achievement %
Median TSR of
comparators
Halfway between
median and
upper quartile
Upper quartile
TSR of
comparators
18.88%
15.00%
Absolute total
shareholder return
Normalised cash return
on equity (nCROE)
10.00%
15.00%
US$ COE
US$ COE + 2% US$ COE + 6%
18.88%
15.00%
Production
12.50% 3.280Moz
3.350Moz
3.420Moz
All-in-sustaining costs
15.00% US$998/oz
US$983/oz
US$968/oz
3.280Moz
US$991/oz
US$ COE
US$ COE + 2% US$ COE + 6%
14.00%
22.50%
6.34%
10.90%
Future
Optionality
6.25%
6.25%
Ore Reserve additions
(pre-depletion, asset
sales, mergers and
acquisitions)
Mineral Resource
(pre-depletion, asset
sales, mergers and
acquisitions)
Plus 0.9Moz
Plus 1.7Moz
Plus 2.6Moz
Plus 3.34Moz
9.38%
Plus 2.8Moz
Plus 5.7Moz
Plus 8.5Moz
Plus 1.11Moz
0.00%
PAGE 148
PAGE 149
2019
REMU NE RATI ON REPORT CON TI NU ED
Section three: Remuneration implementation report – January to December 2019 (continued)
Threshold
measures
≥5%
performance
improvement
(4.57)
90% of major
hazards
identified,
assessed and
controlled.
Target measures
Stretch measures
Actual
achievement
2019
achievement %
≥10%
performance
improvement
(4.33)
92.5% of
major hazards
identified,
assessed and
controlled.
≥15%
performance
improvement
(4.09)
95% of major
hazards
identified,
assessed and
controlled.
3.31
6.00%
98.47%
6.00%
90%
compliance
95% compliance
100%
compliance
99.27%
compliance
2.14%
21
Assessments
completed
group wide
2.25%
1
2
3.00%
2.00%
2
1
3
0
DSP performance measure
Safety,
health,
AIFR – three-year
rolling average
Weighting
4.00%
4.00%
1.50%
1.50%
environment
and
community
Major hazard
management critical
control percentage
compliance
Health – site compliance
to the global safety
standards on
organisational health,
wellness and fitness for
work standard
Completion of risk
assessments per region,
including identification
of critical controls and
actions managed to
closure
Number of reportable
environmental incidents
at operating mines
Greenhouse gas
emissions intensity
at gold producing
operations, measured in
Kg CO2e/tonne
Community: number of
human rights violations
Vesting outcomes of the 2017 LTIP awards
The table below summarises AngloGold Ashanti’s 2017 LTIP metrics, their weightings and performance against these metrics, which vested
in March 2020:
2017 LTIP performance measure
Relative total shareholder return (TSR)
Absolute total shareholder return (TSR)
nCroe
Portfolio optimisation (20%)
– Project delivery
– Asset optimisation
Future optionality (20%)
– Mineral Resource
– Ore Reserve
– Colombia
Core value: People (10%)
– Strategic coverage ratio
– Retention of top talent pool
Sub-total
Multiplier
Core value: Safety
% weighting
% achievement
15%
15%
20%
10%
10%
10%
5%
5%
5%
5%
100%
±20%
15.00%
15.00%
20.00%
3.74%
7.06%
0%
5%
5%
5%
5%
80.80%
16.90%
3
0.00%
– Percent compliance with AngloGold Ashanti safety standards
TOTAL
100%
94.46%
For comparison purposes, the historical LTIP performance achievements are indicated as follows:
7.171
7.150
7.121
7.69
0.00%
Historical LTIP performance achievement
1.50%
(0.3)% off base (0.6)% off base
(1)% off base
≤ 2 human
rights violations
≤ 1 human rights
violations
0 human rights
violations
0
2.25%
2012
37.4%
2013
32.4%
2014
26.1%
2015
41.04%
2016
47.3%
Number of business
disruptions as a result of
community unrest
2.50%
Core value:
Strategic coverage ratio 2.00%
People
Total
Key staff retention
Gender diversity
2.00%
1.00%
100%
5
3
1
23
0.00%
1:1.375
85% pa
1:1.5
90% pa
1:1.75
95% pa
13% female
representation
15% female
representation
17% female
representation
1:1.375
95.5%
19.27%
1.00%
3.00%
1.50%
103.25%
PAGE 150
PAGE 151
2019 REMU NE RATI ON REPORT CON TI NU ED
Section three: Remuneration implementation report – January to December 2019 (continued)
Total remuneration outcomes – Kelvin Dushnisky, Chief Executive Officer
CEO – Key objectives and achievements 2019
Start date:
Notice period:
Change in control
(as described in the Remuneration Policy section “Change in control” on page 136):
1 September 2018
12 months
12 months
CEO
(%)
Maximum
Target
Actual earnings
19
19
19
6
6
6
20
21
32
65
40
41
0
30
60
90
120
150
Base salary Benefits DSP cash DSP deferral
Total actual pay for Mr Dushnisky in 2019, which could result from the remuneration policy stated above, is shown in relation to target and
maximum earning potential.
Maximum DSP cash bonus opportunity: 150%
Maximum DSP share awards opportunity: 300%
Total DSP opportunity: 450% (as % of base pay)
Final cash bonus result: 109.8%
Final share award result: 219.6%
Final DSP result for 2019: 329.4%
(as % of base pay)
Key performance
indicators
Achievements
Safety (20%)
• Achieved record AIFR in the history of the Company, delivering a 31% improvement on 2018
Market guidance
(15%)
Obuasi
redevelopment
project (15%)
Colombia strategy
(5%)
• Achieved the target of zero fatalities for the year, a first in the Company’s history
• Maintained a strong culture of safety, driven by the Company’s core values
• Achieved 2019 full year production, cost and capital guidance, despite several unpredicted externalities and
operating challenges (e.g. Brumadinho TSF failure in Brazil)
• Achieved record production at Kibali, Tropicana and Iduapriem; Geita delivered highest production in 14 years
• Delivered first gold pour at Obuasi on time and within budget, and with strong support of key stakeholders
• Reached an agreement with B2Gold to assume operatorship and advance feasibility studies at Gramalote
in Colombia
• Successfully divested of unwanted Colombian exploration tenements, reducing liabilities and annual holding costs
• Advanced feasibility study activities for Quebradona which includes project permitting and extensive
Balance sheet
(5%)
consultation activities
• Constructively engaged with key stakeholders at all levels
• Reduced leverage ratio target from 1.5x to 1.0x to enforce further discipline
• Maintained balance sheet flexibility and improved liquidity to strongest levels in recent years
• Improved adjusted net debt to adjusted EBITDA to 0.91 times
• Increased free cash flow before growth capital by 106% to $448; cash flow from operating activities increased by
22% to $1,047m
• Annual dividend increased by 57% to 11 US cents per share year-on-year
• Reached agreements to sell Yatela and Sadiola mines in Mali
• Meaningfully advanced process to sell the South African assets and Cerro Vanguardia
• Established and maintained our licence to operate in every jurisdiction
• Led engagements with heads-of-state and other critical stakeholders to ensure alignment to the Company’s
strategy and gain support for key business activities
• Implemented initiatives to support the revised COO structures aimed at improving collaboration and information
sharing, and efficiencies between the operations and corporate centre
• Effective integration of the investor relations, communication and ESG functions under the EVP: Corporate
Affairs and Sustainability
• Seamless onboarding of new EVP: Business Development and Strategy
• Appointment of new SVP: Supply Chain and updated the supply chain structure for improved efficiencies
• Proactive engagement with media resulting in a factual and positive representation of the Company in the public
• Active shareholder engagement through marketing non-deal roadshows and key investor conferences
• Delivered improved share-price performance, an 80% increase for the year, which compares favourably with the
peer group
• Streamlined board reports and meeting structures to improve efficiency and promote impactful outcomes
Asset divestment
(10%)
Government
relations (2.5%)
Organisational
design (10%)
Investor relations
(15%)
Board and
enterprise risk
reporting (2.5%)
PAGE 152
PAGE 153
2019 REMU NE RATI ON REPORT CON TI NU ED
Section three: Remuneration implementation report – January to December 2019 (continued)
CEO’s performance bonus outcome 2019
2019 DSP performance year
bonus outcome
Financial performance targets
Relative total shareholder return
Absolute total shareholder return
nCroe
Production
All-in sustaining costs ($m)
2019 Ore Reserve pre-depletion (Moz)
2019 Mineral Resource additions pre-depletion (Moz)
Safety, health, environment and community
Core value: people
Total % for Company performance:
Organisational performance weighting:
Weighting
10.0%
10.0%
15.0%
12.5%
15.0%
6.25%
6.25%
20.0%
5.0%
100.0%
A - Organisational performance weighted outcome:
Individual performance results
Actual individual targets and strategic objectives are not
disclosed in order to maintain commercial confidentiality in
competitive markets.
Individual performance weighting:
Performance rating bonus correlation:
B - DSP opportunity based on individual performance:
Total % of cash bonus pay opportunity (A+B)
On-target total cash bonus opportunity (as % of base pay)
On-target total deferred share award opportunity (as % of base pay)
Final cash bonus result (as % of base pay)
Final deferred share award result (as % of base pay)
Base pay as at December 2019 (all offshore payments converted to ZAR at exchange rate of ZAR14.445: USD1
Annual cash portion of DSP:
Annual deferred share portion of DSP (to vest over five years):
Total 2019 deferred share plan award:
DSP Cash
payment outcome
15.00%
15.00%
22.50%
6.34%
10.90%
9.37%
0.00%
18.64%
5.50%
103.25%
x
70.00%
=
72.3%
30.00%
X
125.00%
=
37.5%
109.78%
x
100.00%
200.00%
=
109.8%
219.6%
x
18,778,500
=
20,614,098
41,228,197
61,842,295
Total remuneration outcomes – Christine Ramon, Chief Financial Officer
Start date:
Notice period:
Change in control
(as described in the Remuneration Policy section “Change in control” on page 136):
1 October 2014
6 months
6 months
CFO
(%)
Maximum
Target
Actual earnings
10
10
10
2
2
2
9
9
15
32
20
20
0
10
20
30
40
50
60
Base salary Benefits DSP cash DSP deferral
Maximum DSP cash bonus opportunity: 127.5%
Maximum DSP share awards opportunity: 277.5%
Total DSP opportunity: 405%
(as % of base pay)
CFO – Key objectives and achievements 2019
Key performance
indicators
Achievements
Final cash bonus result: 95.20%
Final share award result: 207.10%
Final DSP result for 2019: 302.30%
(as % of base pay)
Leadership (5%)
• Actively engaged with relevant stakeholders, to ensure that they are fully informed on the Company's strategy
• Informed policy and regulatory matters as chair of the listed companies' CFO Forum in South Africa
• Influenced global policies on ethics and worked to improve alignment between public interests and the accounting
profession
Integration into
operations, people
and cost drivers
(10%)
• Ensured that group finance, supply chain and IT functions support the overall group strategic objectives
• Achieved cost performance within market guidance
• Overall capital expenditure has been well contained and below budget/market guidance
Cost discipline (20%) • Corporate costs were contained within budget
• Delivered total forecasted savings related to procurement exceeding the 2019 target by 30%
Liquidity, credit
ratings, balance
sheet (20%)
• Optimised shared services for the South Africa region
• Achieved second Investment Grade rating from Fitch
• Maintained good liquidity levels and sufficient headroom on all facilities
• Successfully renewed local facilities at Geita and Siguiri
• Maintained credit ratings by S&P and Moody's
• Achieved an adjusted net debt to EBITDA ratio of 0.91 times, below the Group target of 1 times through the cycle
Risk management
(10%)
• Implemented selective and limited hedging strategies to manage both the oil input cost risk and the ZAR gold price risk,
providing certainty to the business from a cash flow perspective
• Carefully monitored and managed industry legislation changes and other impacts in the Brazilian mining industry related
to tailings
• Performed a full review of management practices related to strategic, operational and catastrophic risks
• Advised finance, tax and treasury functions on all transactions, restructuring and fiscal negotiations
Transactional
support (10%)
PAGE 154
PAGE 155
2019 DSP Cash
payment outcome
15.00%
15.00%
20.00%
10.80%
10.00%
10.00%
80.80%
16.90%
94.46%
x
110,595
x
277.77
x
29,016,612
REMU NE RATI ON REPORT CON TI NU ED
Section three: Remuneration implementation report – January to December 2019 (continued)
CFO – Key objectives and achievements 2019 (continued)
CFO’s performance bonus outcome 2019 (continued)
Key performance
indicators
Reporting and
compliance (10%)
Achievements
• Optimised reporting timelines to report earlier in line with the North American peer group
• Enhanced financial reporting to better meet business requirements
• Promoted a culture of compliance across the operations
Tax (10%)
• Continued to offset VAT in certain African jurisdictions in a legally compliant manner
• Thoroughly assessed uncertain tax positions and addressed from a disclosure/accounting perspective
• Engaged with the joint venture partner at Gramalote before the transfer of operatorship was concluded
• Ensured that the Company remained tax compliant
2017 LTIP performance measures
Relative total shareholder return
Absolute total shareholder return
nCroe
Portfolio optimisation
Future optionality
Core value: people
Total
Core value: safety multiplier
Weighting
15%
15%
20%
20%
20%
10%
100%
±20%
Information
technology (5%)
• Efficiently managed governance, cyber security and business effectiveness of the overall information management – using
technology – function across the business
A - LTIP performance measures:
CFO’s performance bonus outcome 2019
2019 DSP performance year bonus outcome
Financial performance targets
Relative total shareholder return
Absolute total shareholder return
nCroe
Production
All-in sustaining costs ($m)
2019 Ore Reserve pre-depletion (Moz)
2019 Mineral Resource additions pre-depletion (Moz)
Safety, health, environment and community
Core value: people
Total % for Company performance:
Organisational performance weighting:
Weighting
10.0%
10.0%
15.0%
12.5%
15.0%
6.25%
6.25%
20.0%
5.0%
100.0%
A - Organisational performance weighted outcome:
Individual performance results
Actual individual targets and strategic objectives are not
disclosed in order to maintain commercial confidentiality in
competitive markets.
Individual performance weighting:
Performance rating bonus correlation:
B - DSP opportunity based on individual performance:
Total % of cash bonus pay opportunity (A+B)
On-target total cash bonus opportunity (as % of base pay)
On-target total deferred share award opportunity (as % of base pay)
Final cash bonus result (as % of base pay)
Final deferred share award result (as % of base pay)
Base pay as at December 2019 (all offshore payments converted to ZAR at exchange rate of ZAR14.445:USD1
Annual cash portion of DSP:
Annual deferred share portion of DSP (to vest over five years):
Total 2019 deferred share plan award:
B - 2017 number of shares allocated based on 200% of annual basic salary
DSP Cash
payment outcome
C - Share price as at 28 February 2020
Value of 2019 vesting
15.00%
15.00%
22.50%
6.34%
10.90%
9.37%
0.00%
18.64%
5.50%
103.25%
x
60.00%
=
62.0%
40.00%
X
125.00%
=
50.0%
111.95%
x
85.00%
185.00%
=
95.2%
207.1%
x
9,638,912
=
9,172,148
19,962,910
29,135,058
Non-executive directors’ fees and allowances
The board elected not to take an increase in 2019, given prevailing market conditions. Non-executive directors have not received an
increase in their fees since 2014. Note that while the fees have not changed, the absolute figures will vary according to the number of
meetings held in the particular year.
The table below summarises directors’ fees for the period as well as the comparative totals for 2018 and 2017:
Non-executive directors’ fees and allowances (US dollars)
Director fees
Committee fees
Travel allowance
Total
SM Pityana (Chairman)
AH Garner
AM Ferguson (1)
MJ Kirkwood (2)
NP January-Bardill
R Gasant
RJ Ruston
MDC Richter
DL Hodgson (2)
JE Tilk (1)
M Ramos (3)
Total
303,000
123,500
123,500
33,500
123,500
123,500
123,500
123,500
33,500
123,500
70,000
2019
73,750
37,000
50,500
22,250
56,000
63,500
56,000
71,750
13,500
47,000
30,500
10,000
35,000
42,500
6,250
6,250
6,250
38,750
35,000
–
60,000
6,250
386,750
195,500
216,500
62,000
185,750
193,250
218,250
230,250
47,000
230,500
106,750
Total
2018
441,000
200,000
52,500
246,750
197,500
229,500
260,750
235,250
189,750
–
–
2017
372,250
200,750
–
230,750
179,500
182,000
212,000
203,250
167,000
–
–
1,304,500
521,750
246,250
2,072,500
2,053,000
1,747,500
(1) Director's travel allowance includes travel for site inductions.
(2) Directors resigned effective 9 May 2019
(3) Director joined on 1 June 2019
PAGE 156
PAGE 157
2019 FORWARD-LOOKING STATEMENT S
ADMINISTRAT ION A ND CORPORATE IN FOR MATIO N
Certain statements contained in this document, other than
statements of historical fact, including, without limitation, those
concerning the economic outlook for the gold mining industry,
expectations regarding gold prices, production, total cash
costs, all-in sustaining costs, all-in costs, cost savings and other
operating results, productivity improvements, growth prospects
and outlook of AngloGold Ashanti’s operations, individually or in
the aggregate, including the achievement of project milestones,
commencement and completion of commercial operations
of certain of AngloGold Ashanti’s exploration and production
projects and the completion of acquisitions, dispositions or
joint venture transactions, AngloGold Ashanti’s liquidity and
capital resources and capital expenditures and the outcome and
consequence of any potential or pending litigation or regulatory
proceedings or environmental health and safety issues, are
forward-looking statements regarding AngloGold Ashanti’s
operations, economic performance and financial condition. These
forward-looking statements or forecasts involve known and
unknown risks, uncertainties and other factors that may cause
AngloGold Ashanti’s actual results, performance or achievements
to differ materially from the anticipated results, performance or
achievements expressed or implied in these forward-looking
statements. Although AngloGold Ashanti believes that the
expectations reflected in such forward-looking statements and
forecasts are reasonable, no assurance can be given that such
expectations will prove to have been correct. Accordingly, results
could differ materially from those set out in the forward-looking
statements as a result of, among other factors, changes in
economic, social and political and market conditions, (including
as a result of the covid-19 pandemic), the success of business
and operating initiatives, changes in the regulatory environment
and other government actions, including environmental approvals,
fluctuations in gold prices and exchange rates, (including as
a result of the covid-19 pandemic), the outcome of pending
or future litigation proceedings, and business and operational
risk management. For a discussion of such risk factors, refer
to AngloGold Ashanti’s annual reports on Form 20-F filed with
the United States Securities and Exchange Commission. These
factors are not necessarily all of the important factors that could
cause AngloGold Ashanti’s actual results to differ materially
from those expressed in any forward-looking statements. Other
unknown or unpredictable factors could also have material
adverse effects on future results. Consequently, readers are
cautioned not to place undue reliance on forward-looking
statements. AngloGold Ashanti undertakes no obligation to
update publicly or release any revisions to these forward-looking
statements to reflect events or circumstances after the date
hereof or to reflect the occurrence of unanticipated events, except
to the extent required by applicable law.
All subsequent written or oral forward-looking statements
attributable to AngloGold Ashanti or any person acting on its
behalf are qualified by the cautionary statements herein.
Non-GAAP financial measures
This communication may contain certain “Non-GAAP” financial
measures. AngloGold Ashanti utilises certain Non-GAAP
performance measures and ratios in managing its business. Non-
GAAP financial measures should be viewed in addition to, and not
as an alternative for, the reported operating results or cash flow
from operations or any other measures of performance prepared
in accordance with IFRS. In addition, the presentation of these
measures may not be comparable to similarly titled measures other
companies may use.
AngloGold Ashanti Limited
Directors
Share registrars
Registration No. 1944/017354/06
Incorporated in the Republic of
South Africa
Executive
KPM Dushnisky § (Chief Executive Officer)
KC Ramon ^ (Chief Financial Officer)
Share codes:
ISIN: ZAE000043485
JSE: ANG
NYSE: AU
ASX: AGG
GhSE: (Shares) AGA
GhSE: (GhDS) AAD
JSE Sponsor:
The Standard Bank of South Africa Limited
Auditors:
Ernst & Young Inc.
Offices
Registered and corporate
76 Rahima Moosa Street
Newtown 2001
(PO Box 62117, Marshalltown 2107)
South Africa
Telephone: +27 11 637 6000
Fax: +27 11 637 6624
Australia
AMP Building,
140 St George’s Terrace
Perth, WA 6000
(PO Box Z5046, Perth WA 6831)
Australia
Telephone: +61 8 9425 4600
Fax: +61 8 9425 4662
Ghana
Gold House,
Patrice Lumumba Road
(PO Box 2665)
Accra,
Ghana
Telephone: +233 303 773400
Fax: +233 303 778155
Non-executive
SM Pityana ^ (Chairman)
AM Ferguson *
AH Garner #
R Gasant ^
NP January-Bardill ^
NVB Magubane ^
M Ramos ^
MDC Richter #
RJ Ruston ~
JE Tilk §
* British § Canadian # American
~ Australian ^ South African
Officers
Executive Vice President: General Counsel,
Compliance and Company Secretary
ME Sanz Perez
Investor relations contacts
Sabrina Brockman
Telephone: +1 646 880 4526
Mobile: +1 646 379 2555
E-mail: sbrockman@anglogoldashantina.com
Fundisa Mgidi
Telephone: +27 11 637 6763
Mobile: +27 82 821 5322
E-mail: fmgidi@anglogoldashanti.com
Yatish Chowthee
Telephone: +27 11 637 6273
Mobile: +27 78 364 2080
E-mail: yrchowthee@anglogoldashanti.com
General e-mail enquiries
Investors@anglogoldashanti.com
AngloGold Ashanti website
www.anglogoldashanti.com
Company secretarial e-mail
Companysecretary@anglogoldashanti.com
South Africa
South Africa Computershare Investor Services
(Pty) Limited
Rosebank Towers, 15 Biermann Avenue,
Rosebank, 2196
(Private Bag X9000, Saxonwold, 2132)
South Africa
Telephone: 0861 100 950 (in SA)
Fax: +27 11 688 5218
E-mail: queries@computershare.co.za
Website: www.computershare.com
Australia
Computershare Investor Services
Pty Limited
Level 11, 172 St George’s Terrace
Perth, WA 6000
(GPO Box D182 Perth, WA 6840)
Australia
Telephone: +61 8 9323 2000
Telephone: 1300 55 2949
(Australia only)
Fax: +61 8 9323 2033
Ghana
NTHC Limited
Martco House
Off Kwame Nkrumah Avenue
PO Box K1A 9563 Airport
Accra,
Ghana
Telephone: +233 302 235814/6
Fax: +233 302 229975
ADR Depositary
BNY Mellon (BoNY)
BNY Shareowner Services
PO Box 30170
College Station, TX 77842-3170
United States of America
Telephone: +1 866-244-4140
(Toll free in USA) or
+1 201 680 6825 (outside USA)
E-mail:
shrrelations@cpushareownerservices.com
Website: www.mybnymdr.com
Global BuyDIRECTSM
BoNY maintains a direct share purchase
and dividend reinvestment plan for
ANGLOGOLD ASHANTI
Telephone: +1-888-BNY-ADRS
PAGE 158
PAGE 159
2019 www.anglogoldashanti.com
www.aga-reports.com