INVESTING
in the future
INTEGRATED REPORT 2021
INVESTING
IN THE FUTURE
Our reporting theme
Our ongoing investments are aimed at extending the lives of our
mines and enhancing operating flexibility by ensuring a long-
term Ore Reserve pipeline to underpin production and sustain
AngloGold Ashanti in the long-term.
This investment programme has been supplemented by a new
Operating Model aimed at improving effectiveness, eliminating
inefficiency, enhancing performance and flexibility, and ensuring
clear accountability for delivery on commitments. This Operating
Model prioritises improved operating outcomes and consistency
that will enhance AngloGold Ashanti’s valuation and position in
the sector throughout the commodity cycle.
“We must put in place the right foundation for long-term
success, and the most crucial part of that is an Operating Model
which prioritises efficiency, agility and accountability,” said CEO
Alberto Calderon. “My immediate aim is to ensure that we have
the right people, in the right places, making the right decisions,
to provide better outcomes.”
AngloGold Ashanti is an
independent, global gold mining
company with a diverse, high-
quality portfolio of operations,
projects and exploration activities
across nine countries on four
continents.
We pursue value-creating
opportunities involving other
minerals, where we can leverage
our existing assets, shareholdings,
skills and experience.
Note:
• • AngloGold Ashanti, the Company or the Group refers to AngloGold Ashanti Limited
• • Unless otherwise indicated, $ or dollar refers to the US dollar throughout
• • All information is attributable unless otherwise specified
• • Metric tonnes (t) are used throughout, and all ounces are troy ounces
• • Rounding of numbers may result in computational discrepancies
O U R VA L U E S
Safety is our
first value.
We treat each
other with dignity
and respect.
We are accountable
for our actions and
undertake to deliver on
our commitments.
We want the
communities and
societies in which we
operate to be better off
for AngloGold Ashanti
having been there.
We value
diversity.
We respect
the environment.
OUR 2021 SUITE OF REPORTS
CONTENTS
At AngloGold Ashanti, we are committed to transparent, informed
and consistent reporting to a broad range of stakeholders. Our
2021 reports communicate the challenges facing our business
and progress made to date in delivering on our strategic objectives
and in creating value.
Our 2021 reports are:
INVESTING
in the future
INTEGRATED REPORT 2021
Integrated Report
INVESTING
in the future
MINERAL RESOURCE AND ORE RESERVE REPORT
AS AT 31 DECEMBER 2021
INVESTING
in the future
SUSTAINABILITY REPORT 2021
Mineral Resource and
Ore Reserve Report
Sustainability
Report
INVESTING
in the future
ANNUAL FINANCIAL STATEMENTS 2021
Annual Financial
Statements
INVESTING
in the future
NOTICE OF MEETING 2021
16 March 2022
Reporting
website
Notice of Annual General Meeting and
Summarised Financial Information
(Notice of Meeting)
Our 2021 reports are prepared consistent with the following:
• • International Integrated Reporting Framework
• • King IV Report on Corporate Governance South Africa, 2016
(King IV)
• • South African Companies Act, No. 71 of 2008, as amended
(Companies Act)
• • JSE Listings Requirements
• • International Financial Reporting Standards (IFRS)
• • South African Code for the Reporting of Exploration Results,
Mineral Resources and Mineral Reserves (SAMREC Code, 2016
edition)
• • Sustainable Development Goals (SDGs)
• • United Nations Global Compact (UNGC)
• • Task Force on Climate-related Financial Disclosures (TCFD)
About this report
Directors’ statement of responsibility and
commitment
WHO WE ARE, WHAT WE DO
About AngloGold Ashanti
How we create value
Our business model
CREATING AND PRESERVING VALUE
THROUGH LEADERSHIP
Chairperson’s letter
Corporate governance
(including board and leadership)
OPERATING CONTEXT
Our external operating environment
Integrated stakeholder engagement
Managing our risks and opportunities
STRATEGIC RESPONSE AND DELIVERY
CEO’s review and outlook
Executive Committee
Our strategy – an overview
Performance and delivery by strategic
focus area
• • People, safety, health and sustainability
• • Ensure financial flexibility
• • Optimise overhead, costs and
capital expenditure
• • Improve portfolio quality
• • Maintain long-term optionality
Regional performance
Mineral Resource and Ore Reserve –
summary
Exploration and planning for the future
VALUE CREATED, PRESERVED
AND GROWTH
CFO’s report and outlook
Financial review
Economic value-added statement
Value by stakeholder
REWARDING DELIVERY
Remuneration report
Our 2021 reporting suite, together with supporting
financial, operational and sustainability data, is
available at: www.aga-reports.com
SUPPLEMENTARY INFORMATION
Forward-looking statements
Administration and corporate information
Stakeholder feedback
We welcome feedback on our reporting. Should you have any
comments or suggestions on how we could improve the quality
of our reports, contact our investor relations team at:
investors@anglogoldashanti.com
Navigating our
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AngloGold Ashanti Limited 2021AngloGold Ashanti Limited 2021 ABOUT THIS REPORT
The aim of this report is to provide balanced insight into
AngloGold Ashanti’s ability to create and preserve value
in the prevailing operating context. This report provides a
concise overview of our overall performance and prospects,
to assist the reader in making an informed decision on our
ability to create value in the short, medium and long term,
and on the future viability of our business.
Reporting period
Our integrated report is published annually. This Integrated Report
2021 () covers the performance of AngloGold Ashanti and its
subsidiaries, associates and investments for the financial year
1 January to 31 December 2021. For completeness, any
significant events occurring from the end of the year
2021 to the date of approval of this report are included.
Scope and boundary
This report describes our business model, strategy, significant
risks, opportunities and issues, and our overall performance
and related outcomes and prospects for the year under review.
In addition to AngloGold Ashanti’s financial performance, we
also present information relating to our non-financial (social and
environmental) and governance performance.
Our reporting boundary
The boundary for this integrated report is determined by
our operating environment, the related risks, opportunities,
and outcomes, and by the results of engagement with key
stakeholders who may potentially affect our ability to create
sustained value.
This is a group-level report, covering the entire Company, its
joint ventures and investments. All managed operations are fully
reported. Our joint venture, Kibali (AngloGold Ashanti, 45%), is
partially reported. More detailed information on Kibali is provided
on the corporate website of our joint venture partner, Barrick Gold
Corporation (Barrick), which manages the operation.
References to discontinued operations relate to South African
operations disposed of during 2020. The remaining operations are
classified as continuing operations.
Audience
This , aimed primarily at long-term investors, shareholders and
other providers of financial capital, endeavours to enable informed
decision-making by aiding understanding of AngloGold Ashanti’s
potential long-term viability and ability to create and protect value.
The report also provides information on the creation and
preservation of value relevant to other stakeholders – employees,
suppliers and business partners, communities and governments.
Integrated reporting boundary
Financial reporting
boundary
Subsidiaries, joint ventures, investments
1
Strategy
2
External operating
environment
3
Risks
4
5
Opportunities
Outcomes
STAKEHOLDERS
Shareholders/
Investors
Employees
Governments/
Regulators
Suppliers
Communities
For our operating assets and related shareholdings, see About AngloGold Ashanti. For detail on our principal subsidiaries and operating
entities, refer to the .
More comprehensive information on our operational, financial, geological and sustainability performance is provided in the respective
supplementary reports that are available online at www.aga-reports.com.
2
Integrated reporting process
AngloGold Ashanti understands the importance of, and is committed
to, integrated reporting and we aim to continually improve the
quality of our reporting. The integrated reporting process begins
with an evaluation of the previous year’s report to identify areas
for improvement and enhanced disclosure. We also undertake
benchmark and gap analyses to improve alignment with best
reporting practice. The content of the is based on board
reports, presentations, written submissions and interviews with key
executives. Disclosure is overseen by a working group led by the CFO.
Draft copies are reviewed by subject specialists and senior
executive management, including the CFO, prior to the report’s
submission to the Audit and Risk Committee. This committee
provides approval and recommends the report to the board for
final approval.
Key issues
This report focuses on those factors that have the potential to
significantly affect our ability to create value in the short, medium
and long term, and which are of most interest to investors and
shareholders, the primary audience. Consequently, we consider our
most significant issue in this context to be the sustained profitability
of our business, as measured by all-in sustaining costs, free cash
flow, adjusted EBITDA and normalised return on equity (nCROE).
Shareholders invest in AngloGold Ashanti to earn dividends and for
capital appreciation (measured in aggregate by total shareholder
returns), both of which are determined by earnings. This is
acknowledged in our remuneration policy – see Rewarding delivery.
Access to capital to fund future growth and development is also
influenced by our long-term outlook for profitability.
Approval and assurance
While the is not independently assured as a whole, certain
information presented has been subject to either an internal or
external audit. Type of assurance and monitoring applied:
• • Annual financial
statements
• • Sustainability
(non-financial) data
• • Operational and other
financial and non-financial
data, compliance and risk
management
• • External financial audit
(Ernst & Young (EY))
• • External assurance of
selected, sustainability
metrics (EY)
• • Internal audit (overseen by the
Audit and Risk Committee)
The Audit and Risk Committee, on behalf of the board, approves
and monitors the auditing and assurance of all reporting
and related processes. See the for this committee’s
chairperson’s report.
Internal audit and related approval processes include, among
others, regular management reviews of information and data
published. Management also verifies the processes that determine
all non-financial information.
In addition, our operations are subject to risk-based, integrated,
combined assurance reviews of the financial, safety, compliance 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.
Reporting frameworks and compliance
In compiling this report, we have applied the International Integrated Reporting Framework and its guiding principles and content elements. In
addition to the frameworks, standards and guidelines listed on the inside front cover of this report, we have also taken into account the World
Gold Council’s Responsible Gold Mining Principles, the principles of the International Council on Mining and Metals (ICMM) and the guidelines
of various sustainability indices prepared by ESG ratings agencies, such as the FTSE/Russell Responsible Investment Index (FTSE4Good), the
S&P Global Corporate Assessment (CSA) and the Bloomberg Gender-Equality Index.
Directors’ statement of responsibility and commitment
The AngloGold Ashanti board of directors acknowledges its responsibility for ensuring the integrity of this integrated report. The board
believes that it complies with the Value Reporting Foundation’s International Integrated Reporting Framework and that it presents a fair
and balanced view of AngloGold Ashanti’s performance, strategy, risks, opportunities, and outlook. The board is confident that the 2021
suite of reports identifies all those issues considered significant to our ability to create value over time and that it will enable informed
decision-making on our long-term prospects by investors and shareholders in particular, as well as by other stakeholders. Supported by
the Audit and Risk Committee, the board approved this integrated report on 29 March 2022.
Board Chairperson:
Maria Ramos
Audit and Risk Committee chairperson:
Alan Ferguson
Independent non-executive directors:
Kojo Busia, Albert Garner, Rhidwaan Gasant, Scott Lawson, Nelisiwe Magubane, Maria Richter, Jochen Tilk
Executive directors:
Alberto Calderon
Chief Executive Officer (CEO)
Christine Ramon
Chief Financial Officer (CFO)
3
AngloGold Ashanti Limited 2021AngloGold Ashanti Limited 2021 ABOUT ANGLOGOLD ASHANTI
VISION
To be the
LEADING MINING COMPANY
OUR MISSION
To create value fo r o ur sha rehol ders ,
our emp loyees , a nd our b u si ness
and soc ial pa r t ner s by s afely a nd
resp onsibl y exp lor in g, m inin g a n d
market in g o u r p rodu ct s.
OUR VALUES
Ou r s ix va lu es g ui de al l deci si ons made
an d ac tion s taken in the con duc t of our
bu si nes s. Thes e val ues li nk our bu sines s
ac tivi ties to ou r en vi ronmenta l, so c ial and
govern an ce (ESG ) g oal s an d c ommi tments.
ANGLOGOLD ASHANTI AT A GLANCE
• • Produced 2.472Moz of gold and employed an average
of 30,561 people (including contractors) in 2021
(2020: 2.806Moz*; 36,952 people**)
• • Gold is our principal product. Silver and sulphuric acid are
by-products at our Argentinian and Brazilian operations
respectively. Quebradona in Colombia is a gold-copper project
• • A significant asset base with a total gold Mineral Resource of
123.2Moz that includes a 29.8Moz Ore Reserve
• • Listed on the Johannesburg, New York, Australia and Ghana
stock exchanges
• • Geographically diverse shareholders including the world’s largest
financial institutions
• • Market capitalisation of $8.8bn at 31 December 2021
(2020: $9.4bn)
• • Constituent of the JSE Top 40 Index, the S&P Global CSA, the
FTSE/JSE Responsible Investment Index Series (the FTSE4Good
Index), the Responsible Mining Index and the Bloomberg 2021
Gender-Equality Index
* Excludes 241,000oz produced by former South African operations
** Includes South Africa operations
INVESTMENT CASE
• • Our well-defined, disciplined and shareholder-focused
capital allocation framework is supported by significant
cash-flow generating ability, a strong balance sheet and our
firm intention to return value to shareholders
• • Our self-generated and self-funded project pipeline,
supported by substantial long-term production plans, is
complemented by our proven track record in replenishing
and increasing our Ore Reserve. We aim for value-accretive
growth, with a singular focus on risk-adjusted returns
• • Our ESG focus is embedded in our decision-making and in
the way we work and act. It informs our plans and actions
from the initial exploration, to project development and the
start of mining operations, throughout the productive life
of our mining assets and through to closure. Sustainability
and ESG are entrenched in our business, strategy, activities
and processes, driving long-term value creation and
underpinning our social licence to operate
• • As a responsible gold miner, we aim to create long-term
value for all our stakeholders in partnership with host
communities and governments
OUR FOOTPRINT
LEGEND
Operations
Projects
Exploration
Note: Percentages
indicate the ownership
interest held by AngloGold
Ashanti. All operations
are 100%-owned unless
otherwise indicated.
AMERICAS
1 Argentina
AFRICA
5 Guinea
Cerro Vanguardia (92.5%)
Siguiri (85%)
2 Brazil
Serra Grande
AGA Mineração
3 Colombia
Gramalote (1) (50%)
La Colosa
Quebradona
United States of America
(United States)
Silicon (2)
4
6 Ghana
7
Iduapriem
Obuasi (3)
Democratic Republic of
the Congo (DRC)
Kibali (45%) (4)
8 Tanzania
Geita
AUSTRALIA
9 Australia
Sunrise Dam
Tropicana (70%)
Production
(Group contribution):
Total Ore Reserve:
Average employed
(including contractors):
Operating cash flow (5)
(Operating contribution):
Capital expenditure:
Total community
investment:
0.559Moz
(23%)
7.38Moz
1.419Moz
(57%)
19.48Moz
0.494Moz
(20%)
2.97Moz
9,972 people
17,260 people
1,332 people
$214m
(15%)
$398m
$5.8m
$1,065m
(72%)
$506m
$10.5m
$199m
(13%)
$185m
$1.0m
(1) Gramalote is managed by B2Gold
(2) As at 31 December 2021, a maiden Mineral Resource was declared for Silicon
(3) Obuasi’s redevelopment project began in 2019
(4) Kibali is operated by Barrick Gold Corporation (Barrick)
(5) Includes joint ventures
4
5
965782431AngloGold Ashanti Limited 2021AngloGold Ashanti Limited 2021
HOW WE CREATE VALUE
To fulfil our purpose and mission, we have in place an integrated business model and a resilient and
flexible strategy that enables AngloGold Ashanti to respond as necessary to the constantly changing
world in which we operate. We strive for agility in our strategic decision making and in our response to
a dynamic operating environment and unpredictable economic and commodity cycles, to enable us to
sustain long-term value creation.
GOVERNANCE
Our overarching corporate governance framework underpins value creation and the long-term sustainability of our business.
Together with our Code of Ethics, which is based on our values, the corporate governance framework is crucial to the successful
achievement of our business objectives, delivery on our strategy and value creation. It guides all decision-making, business activities
and actions.
To create value and deliver on our vision and mission, the following elements are in place:
1
2
3
4
Understanding our
context
External operating environment
The global macro-economic, geopolitical and financial
landscape, as well as the location of our operations and their
specific political and social dynamics, all affect our ability to
deliver on our strategy and to create value over time.
See Our external operating environment
Stakeholder engagement and key relationships
In conducting our business, we have an impact on
stakeholders and they, in turn, through their needs, actions
and expectations, influence our business and our social
licence to operate.
Our approach to inclusive stakeholder engagement seeks to
balance the interests and expectations of stakeholders over
time. Constructive and respectful dialogue with stakeholders
is vital in managing these expectations and any issues
identified.
Identifying our risks,
opportunities and
key issues
Risks and opportunities
Understanding the world in which we operate, the supply
and availability of the scarce resources we rely on to
conduct our business, as well as stakeholder relationships
and expectations, guide us in identifying, prioritising and
managing our risks and opportunities. This enables planning
and initiatives to effectively mitigate such risks, to act on
opportunities and to achieve our strategic objectives.
See Managing our risks and opportunities
Key issues
Our materiality assessment process prioritises and integrates
into our strategy and business model those key issues
affecting our ability to create value. Understanding and
managing stakeholder needs, expectations and concerns, and
how we in turn affect them, is vital to the successful delivery
on our strategy and to value creation.
Strategising and
allocating resources
Creating and
preserving value
Sustained value creation over time requires responsible
corporate citizenship and encompasses social upliftment,
careful environmental stewardship, effective governance
and the creation of economic opportunities for communities,
suppliers and governments.
Our mission to create value is supported by an emphasis on
ESG performance. This is supported by our values and the
foundation of our strategy – our enduring focus on people,
safety and sustainability.
Strategy
Mining is a long-term business, and so our strategy aims to
create sustained value over the life of our mining operations
and beyond. This involves the allocation of key resource
inputs – the natural, financial, human, manufactured, social
and relationship, and intellectual capitals – which are
essential to achieving this aim.
Business model
We actively manage our activities as we try to mitigate
negative impacts of our operations and seek to achieve
positive outcomes.
Understanding the long-term impacts of decisions on the
allocation and use of capital inputs, and resulting strategic
trade-offs, is essential to long-term value creation and
preservation, and to limiting value erosion.
See Integrated stakeholder engagement in this report and
Focusing on our material issues in the .
See Focusing on our material issues in the and Integrated
stakeholder engagement in this report.
See Our business model and Performance and delivery by
strategic focus area.
See Performance and delivery by strategic focus area
and Value by stakeholder.
OUR BUSINESS – WHAT WE DO
1. Exploration and development
Establish and maintain a pipeline of
economically viable and competitive projects to
develop long-term mining operations. Exploration
is a cornerstone of our business.
2. Mining, processing and refining
Operate and maintain mining and processing
infrastructure and equipment, and ensure a
skilled and trained workforce to enable cost-
efficient, safe operations.
3. Sale of product, financial management
Sale of gold and by-products to generate
revenue. Solid financial management and
disciplined capital allocation ensures positive,
sustained cash flow and returns.
4. Rehabilitation and mine closure
Develop and maintain constructive stakeholder
relations to support our regulatory and social
licences to operate, minimise and mitigate our
environmental impact and manage closure
responsibly in line with our values.
6
7
AngloGold Ashanti Limited 2021AngloGold Ashanti Limited 2021 OUR BUSINESS MODEL
The conduct of our business entails the efficient use of capital inputs. Delivery on our strategy entails
optimising and balancing use of these inputs, enhancing positive outcomes and impacts, and minimising
those that are negative. Our business model describes how we create stakeholder value and is informed
by our vision, mission and strategy.
The efficient extraction and processing of gold-bearing ore requires well-maintained mining infrastructure, plant, machinery and equipment.
Our capital inputs and related actions – 2021
NATURAL CAPITAL
A pipeline of economically viable
mineable orebodies is essential to
our business, as are the land, energy
and water used in the mining and
processing of ore.
Began year with:
• • A Mineral Resource of 124.5Moz, of which 29.7Moz was classified as Ore Reserve
• • 639,709ha of land under management
• • Active greenfield and brownfield exploration programmes to identify potentially viable orebodies
During the year, we:
• • Treated/milled 44Mt of ore
• • Consumed 22.04PJ of energy
• • Withdrew 33.12GL of water
• • Exploration (brownfield and greenfield) spend of $217m
• • Continued project to convert our Brazil tailing storage facilities (TSFs) to dry stacking at a cost
of approximately $140m for 2021
• • Approved a new Climate Change Strategy to address our energy consumption and
greenhouse gas (GHG) emissions and started work on setting new GHG emissions
targets for 2030
FINANCIAL CAPITAL
Access to cost-efficient capital
funds to sustain our business and
ensure future growth. Investment
in the business aims to enhance
performance and efficiency, to
improve margins and sustainably
extend operating lives. Main sources
are operating cash flow, borrowings
(bond and credit facilities), and equity.
Began year with:
• • Total equity of $3.74bn
• • Cash and cash equivalents of $1.33bn
• • Adjusted net debt of $597m
• • Undrawn credit facilities of $1.5bn
• • Market capitalisation of $9.43bn
During the year:
• • Generated $1.268bn in operating cash flow (2020: $1.545bn). The decline was mainly due to the
reduced ounces of gold sold and higher operating costs, partially offset by the marginally higher
gold price received, lower cash taxes, higher dividends received and favourable movements in
working capital. See CFO’s report and outlook
• • Began implementation of a new Operating Model which is being introduced to create a
foundation to ensure improved operating outcomes in 2022 and beyond
• • Issued seven-year $750m bonds at lowest-ever coupon for AngloGold Ashanti of 3.375%
per annum
• • Successfully redeemed $750m of 5.125% per annum bonds scheduled to mature in 2022
Our capitals
Natural capital
Human capital
Manufactured capital
Financial capital
Social and
relationship capital
Intellectual capital
Outcomes of our actions 2021 by year end
NATURAL CAPITAL
• • Mineral Resource of 123.2Moz and Ore Reserve of 29.8Moz post
depletion at year end
• • Maiden Mineral Resource declared for Silicon in Nevada
of 3.4Moz
• • Agreed to acquire Corvus Gold (Corvus) to increase our position in
the Beatty district of Southern Nevada. Corvus properties are
adjacent to our own landholdings in the area (acquisition completed
on 18 January 2022)
• • 5 reportable environmental incidents (2020: 8)
• • 639,709ha under management of which 806ha was newly disturbed
and 177ha rehabilitated at the end of 2021
Energy and GHG emissions*
• • Achieved an energy use intensity
Water*
• • Achieved a water use
of 0.50GJ/t treated
(2020: 0.37GJ/t treated)
intensity of 0.75kL/t treated
(2020: 0.68kL/t treated)
• • Recorded a GHG emissions
• • Re-used 67% of water
intensity of 31kg CO2e/t treated
(2020: 33kg CO2e/t treated)
(2020: 73%)
* Includes the impact of sold assets: West Wits, Mine Waste Solutions, Vaal River
in South Africa and Sadiola in Mali
For further data, see ESG and Sustainability Data Workbook
FINANCIAL CAPITAL
Ended the year with:
• • Robust balance sheet – strong liquidity of approximately $2.6bn,
low leverage of 0.42 times adjusted net debt to adjusted EBITDA,
and refinanced our longer-term debt through the redemption of the
2022 bonds
• • Adjusted net debt of $765m, down 76% from its 2014 peak –
without raising additional equity
• • 58% lower finance costs since 2014
• • Net cash position – cash and cash equivalents of $1.154bn
• • Free cash inflow of $104m, down from $743m in 2020 (1)
• • Adjusted EBITDA of $1.8bn, down from $2.47bn in 2020
• • Capital expenditure of $1.1bn, up from $757m in 2020 (2)
• • Headline earnings of $612m, down from $1,000m (1) in 2020
• • Share price down by 7% in 2021, negatively impacting market
capitalisation at 31 December 2021
• • Since 1 September 2021, the share price has increased by 39%,
compared with a 15% increase in the Market Vectors Gold Miners
Exchange Traded Fund, making AngloGold Ashanti’s one of the
best-performing major gold shares over that period
(1) Includes discontinued operations
(2) Includes joint ventures
Outputs
Produced
2.5Moz of gold
3.5Moz of silver
173t of sulphuric acid
Revenue generated
$4.0bn
Mining waste generated as follows
44.1Mt of tailings deposited
146.5Mt of overburden and
waste rock
21.0Mt of hazardous waste
responsibly managed
Emissions generated
GHG emissions (CO2e)
Nitrous oxides (NOx)
1,380Kt
4,968t
Sulphur dioxide (SO2)
174t
8
9
AngloGold Ashanti Limited 2021AngloGold Ashanti Limited 2021 OUR BUSINESS MODEL continued
Our capital inputs and related actions – 2021
HUMAN CAPITAL
Successful, profitable, sustainable
operations rely on the skills,
knowledge, productivity, motivation
and well-being of employees.
Employees are the foundation of
our business.
MANUFACTURED CAPITAL
The efficient extraction and
processing of gold-bearing ore
requires well-maintained mining
infrastructure, plant, machinery and
equipment.
Began year with:
• • Safety policy and functional support dedicated to zero harm and eliminating fatalities
• • Experienced, diverse leadership and board
• • Policy promoting equality, diversity and inclusivity
• • Employee localisation a focus area – especially in the Africa region
• • Motivational reward structures linked to strategic performance and delivery
During the year, we:
• • Employed an average of 30,561 people, including 16,384 contractors
(2020: excluding South African operations – 28,655 and 14,937 respectively)
• • Revitalised safety strategy and introduced a related three-year work plan focused on leadership
and people, processes, technology, innovation and risk management
• • Embarked on design and implementation of new Operating Model, including
organisational restructuring
• • Spent $7m on critical skills training and development
• • Supported national COVID-19 vaccination initiatives
Began year with:
• • Ten mining operations – with accompanying infrastructure, gold processing plants and
equipment, and four growth projects in development (Obuasi, Gramalote, Quebradona,
Beatty District in Nevada)
• • Tangible assets, right of use assets and intangible assets with a book value of $3.157bn
• • Relevant exploration and mining rights, permits and licences
During the year, we:
• • Incurred total cash costs of $2.3bn
• • Spent $778m * on sustaining operations and enhancing performance (sustaining capital)
• • Implemented new Operating Model to streamline and empower our operations to enable them to
deliver consistently and safely on plans
• • Progressed growth projects
For details on materials consumed – such as cyanide, diesel, explosives, acids and alkalis, among
other items – in the course of our mining and processing activities, see ESG and Sustainability Data
Workbook 2021
* Includes joint venture
Outcomes of our actions 2021 by year end
HUMAN CAPITAL
Workforce
Employee relations
• • Restructuring related to new
Operating Model resulted in a
reduction in central function
roles of 215 people
• • Restructuring across the
group’s business units will be
completed during 2022
Diversity and training
• • In 2021, women made up:
• • 12.3%* of total workforce
(2020: 12.6%)
• • 36% of board members
• • Maintained strong employee
relations – no industrial action
Safety and health
• • 2 fatalities (2020: 6 (includes
South Africa))
• • Overall improved health
performance
• • Excluding South Africa, safety
performance regressed, though
injury rates remain well below the
ICMM peer average; severity of
injuries also continues to decline
(2020: 44%)
• • Around 85% of workforce fully
• • 33% of executive
management (2020: 33%)
* 12.3% reflects only employees
on payroll
vaccinated (excluding boosters)
by end 2021 – this has greatly
supported the process to
normalise operations
MANUFACTURED CAPITAL
AngloGold Ashanti has filed an
appeal to secure further details on
specific information the agency
requires. The aim is to prepare,
submit and process a new
environmental licence request
for Quebradona in due course.
Gramalote is a joint operation with
B2Gold. The final feasibility study for
the Gramalote project is expected to
be delivered this year
North American project:
Aim of the Corvus acquisition is
to use this combined portfolio of
Nevada assets (along with our
own emerging resource base in
the region) to establish a low-cost,
long-life production base over the
medium term in the Beatty District
• • At 31 December 2021,
tangible assets, right of use
assets and intangible assets
with a book value of $3.757bn
Projects
Obuasi:
• • Phase 2 construction
complete
• • Phase 3 underway
• • Ramping up to 4,000tpd
and an annual rate of gold
production of 320,000oz
to 340,000oz in the fourth
quarter of 2022
Colombian projects:
Quebradona, an attractive
long-life, high-grade, low-cost
project, will introduce copper
production into the portfolio.
Colombia’s environmental
agency ‘archived’ our
environmental licence
application for Quebradona,
meaning that it declined
to approve or deny the
appreciation.
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AngloGold Ashanti Limited 2021AngloGold Ashanti Limited 2021
• • Dedicated community engagement structures to foster strong relationships based on trust
• • Maintained investor
OUR BUSINESS MODEL continued
Our capital inputs and related actions – 2021
SOCIAL AND RELATIONSHIP CAPITAL
Began year with:
Honest, constructive stakeholder
relations aid understanding of
stakeholder needs and expectations,
underpinning our licence to operate.
All stakeholder engagement is
guided by our values and Code of
Ethics.
INTELLECTUAL CAPITAL
Strong governance framework,
organisational systems and
procedures – underpinned by
technological innovation to optimise
system and process efficiencies, and
outcomes – essential to delivery on
our vision, mission and strategy.
• • A reliable, cost-focused and representative supplier database, aligned with our Supplier Code of
Conduct, prioritising local suppliers
• • Community grievance mechanisms in place across our operations
• • Commitment to share value and socio-economic benefits of our mining activities
During the year, we:
• • provided informative, transparent, regular and reliable disclosure to all key stakeholders
• • maintained constructive relationships with government and regulators
• • invested $18.1m (1) in community projects to promote resilient socio-economic development
* Excludes joint venture
Began year with:
• • Integrated, focused strategy supported by sound management systems and a robust corporate
governance framework encompassing effective risk management
• • A values-driven culture that is guided by Our Code
• • The necessary policies are in place to ensure responsible environmental stewardship and
consumption, and responsible corporate citizenship
• • A solid brand and reputation
During the year, we:
• • conducted Project Thrive aimed at restructuring and streamlining our organisation to bring about
significant efficiency improvements and ensuring its long-term success, which occurred hand-in-
hand with the roll-out of the new Operating Model
• • conducted a company-wide culture survey as first step in the initiative to refresh
organisational culture and values
• • progressed digital transformation roadmap – defined the initiatives to be implemented and
advanced to feasibility stage. These initiatives are grouped as follows:
• • Digital supply chain
• • Connected assets
• •
Intelligent planning and engineering
• • Next generation safety and sustainability
• • Digital mining operations
The expected benefits from the roadmap are: improved operational efficiencies; greater agility;
improved recoveries; greater staff engagement; reduced costs; and improved safety. Investment to
progress the initiatives to feasibility amounted to around $200,000 and entailed:
• • Adopting the Control Objectives for Information and Related Technology (COBIT) framework to
improve IT governance. This assisted in meeting regulatory compliance, risk management and
aligning the IT strategy with the organisation’s overall goals
• • Adopting several new processes while the maturity of several existing processes increased to
level 4 maturity to further strengthen governance
• • Aligning board reporting with King IV principles for good governance
Outcomes of our actions 2021 by year end
SOCIAL AND RELATIONSHIP CAPITAL
Shareholders and investors
Communities
confidence by delivering
on strategic objectives
and targets, solid financial
performance and consistent,
regular targeted engagement
Governments and regulators
• • Constructive relations
maintained by regular, reliable
engagement, regulatory
compliance and responsible
citizenship
• • Regulatory compliance – no
material fines received for
non-compliance
INTELLECTUAL CAPITAL
• • Overall positive community
relationships were boosted
by active engagement and
provision of local employment
and procurement opportunities,
infrastructure and services
• • Community partnerships and
relations strengthened by
collaborative efforts to combat
COVID-19
• • 447 community complaints
received, of which 48 remained
unresolved at
year end
• • No human rights violations
reported for fourth consecutive
year
• • Maintained our focus
• • Results of the culture survey are
being analysed and will be used to
guide learnings on how to improve
engagement and collaboration
with one another in pursuit of our
strategic goals
• • Committed to a target of net zero
Scope 1 and 2 GHG emissions
by 2050, and, in partnership
with our value chain partners,
to set Scope 3 GHG emissions
reduction targets, if not by the
end of 2023, as soon as possible
thereafter
on a robust governance
framework, organisational
systems and procedures,
underpinned by integrating
all sustainability systems
and processes through our
Integrated Sustainability
Information Management
System (iSIMS). The
systems implementation
began during the year to
increase efficiencies and
improve outcomes which are
essential to delivering on our
strategy, aligned to the new
Operating Model
• • New Climate Change
Strategy developed to
enhance proactivity and
transparency in mitigating
current and future climate
risks; measures being taken
to strengthen the climate
resilience of our business
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AngloGold Ashanti Limited 2021AngloGold Ashanti Limited 2021
As ever, AngloGold Ashanti’s
values will continue to be a
lodestar in dictating our actions
and our interventions – not only
in response to COVID-19 and its
aftermath, but in every aspect of
how we do business.
Maria Ramos
Chairperson
CHAIRPERSON’S
LETTER
Dear Stakeholders,
The terrible invasion of Ukraine by Russia, the continuing presence
of COVID-19, worldwide inflation and the risk of stagflation, present
a complex environment that we must continue to navigate.
With over two million refugees, countless civilian casualties and
many millions internally displaced, it is hard to quantify the social,
humanitarian and economic costs inflicted on the people of Ukraine.
The early estimates of economic costs are huge. The impact on
global supply chains from the conflict will become clearer over time.
Fragile recovery
In January 2022, the IMF’s World Economic Outlook Report pointed
to rising COVID-19 caseloads due to the Omicron variant, along with
mobility restrictions and rising inflation, all signalling a ‘disrupted
recovery’ in the global economy. This will be compounded by the
Ukraine conflict and the impact on energy prices as countries reassess
energy dependency and contemplate the shift to other markets.
In the immediate aftermath of the invasion, commodity prices
soared to levels not seen in years, or in some cases, ever. Gold has
been a beneficiary, touching near-record levels of $2,060/oz in early
March 2022. Prices for oil, copper and aluminium spiked. So, too,
did prices of commodities such as wheat and corn.
Inflation, which was already a concern at the end of 2021, is
forecast to increase further, posing a more material risk for the
global economy and our business. Commodity shortages and the
subsequent second and third-order effects of rising prices, are likely
to have far reaching consequences such as food shortages and
hunger in many parts of the world.
COVID-19
The direct toll of COVID-19 has been staggering, with almost six
million deaths reported from more than 400 million cases. The true
number is likely far higher.
In addition to high levels of absenteeism caused by illness and
quarantine requirements, border closures and travel bans changed
normal patterns of labour mobility.
In Western Australia, with some of the world’s toughest
restrictions, mining skills became harder to find as out-of-state
workers were shut out by a hard border shutdown. Iron ore
producers in Australia and Brazil, cash flush from a run of record
prices, paid premiums to attract scarce skills. As with many of our
gold-producing peers, the resultant wage inflation eroded margins
and the vacancies hurt efficiency.
Mining was not the only sector affected by changing labour
trends and rising input costs. Global supply chains experienced
a range of challenges which caused delays and added to
inflationary pressures.
A resilient organisation in transformation
These exogenous shocks and our difficulties dealing with many
of the disruptions they brought last year highlighted the need for a
more competitive, agile and resilient business.
Our new CEO, Alberto Calderon, who joined in September 2021, has
introduced a new Operating Model designed to achieve just that
– a more agile and robust organisation, better able to deal with an
increasingly unpredictable operating landscape.
14
This new Operating Model, detailed elsewhere in this report, greatly
simplifies the organisational structure, eliminates duplication,
ensures the operating mines are appropriately resourced, and
ensures clear accountability for the safe and responsible delivery of
our commitments. The board strongly endorses these objectives.
As ever, AngloGold Ashanti’s values will continue to be a lodestar
in dictating our actions and our interventions – not only in
response to COVID-19 and its aftermath, but in every aspect of
how we do business.
Gold market
We’ve seen gold fulfilling its role as a haven in times of uncertainty
and inflation. The ongoing conflict and negative real interest rates
are also supportive for gold.
Notwithstanding this positive sentiment in the gold price, it remains
a time for disciplined capital allocation. Tight cost management
and overall efficiency improvement are key areas of emphasis for
the board and the executive, given the inflationary pressures already
evidenced in the business.
Leadership
We are pleased to have someone of Alberto’s calibre and experience
to lead the business through the next phase of our development.
The board is fully supportive of the strategy, including the redesign
and implementation of the new Operating Model, which creates a
foundation for ensuring operating excellence.
Chief Financial Officer Christine Ramon has chosen to take early
retirement in June of this year, and a thorough process to find
and appoint her replacement has begun. I extend the thanks of
the board to Christine for her exemplary service to the Company,
including her stewardship through a challenging environment during
the year she served as Interim Chief Executive Officer. Similarly,
Ian Kramer was exemplary in his role as Interim Chief Financial Officer.
Other changes to the leadership team, detailed in the Remuneration
Committee Chairperson’s letter to shareholders, have deepened
the experience of the Company’s executive as it works to close the
valuation gap with our peers.
The board welcomed Scott Lawson as its newest non-executive
director on 1 December 2021. Scott was Executive Vice President
and Chief Integration Officer for Newmont Corporation until January
2020. Prior to this, he served as Executive Vice President and Chief
Technology Officer and in other senior technical roles at Newmont
and Rio Tinto over more than 30 years. His depth and breadth of
technical experience will add significant value to our business.
Business performance
The most serious setback during the past year was the sill-pillar
failure at Obuasi, in May 2021, which caused a fatality and led us to
voluntarily suspend underground production for the remainder of
the year while remedial actions were undertaken.
Daniel Nuertey-Kwao Quaynortey died in that incident, while a
fall-of-ground in February 2021 at our Serra Grande mine in Brazil
claimed the life of Carlos Machado Barbosa. I offer my sincerest
condolences to their families and loved ones and offer my
assurance that concrete steps have been taken to improve safety
and eliminate injuries from our mine sites. There is no higher priority.
The stoppage at Obuasi compounded a series of challenges
experienced elsewhere in the business during the year. In addition
to skilled labour shortages and rising inflation, COVID-19 affected
production and costs, while a complex and expensive investment
in converting our TSFs in Brazil to dry-stacking facilities also
contributed to lower production and narrower margins.
Although these operating and cost disappointments led to a
revision of guidance in August 2021, our mines staged a recovery
in the second half of the year. The business ended the year
generating a cash surplus of $104m after more than replacing the
Ore Reserve, self-funding a significant reinvestment programme
and funding 2021’s final dividend declaration. A total dividend of
20 US cents a share was declared for 2021, in line with our policy.
The balance sheet remains robust.
Environment, social and governance
The board and our leadership are focused on continued
improvement in our ESG performance. While significant progress
was made across a broad front this year, we realise much remains
to be done, including to reach the board’s own targets on diversity
and inclusion.
The approval of our Climate Change Strategy in November 2021
was an important milestone. So, too, was the publication in
December 2021 of our first Climate Change Report, aligned with the
recommendations of the Task Force on Climate-Related Financial
Disclosures, and which details our approach to dealing with the
impacts of a changing climate on our business.
Notwithstanding the 69% reduction in absolute greenhouse gas
emissions since we first set targets with 2007 as the baseline
year, we are focused on ensuring further improvements. A new
decarbonisation target for 2030 is in the works which will provide
a key milestone to meeting our commitment of reaching net zero
Scope 1 and 2 emissions by 2050.
Host community expectations will continue to grow as the
pandemic lingers and commodity prices rise. We will remain in a
constructive dialogue with these stakeholders to better understand
their expectations and how we can help in meeting them.
Our contributions to communities stem not only from our vibrant
programme of direct corporate social investments, but also from
ensuring we have a robust, profitable business that pays taxes,
buys local goods and employs nationals in our host countries. Our
Economic value-added statement provides useful detail on how we
measure up in each of these areas.
Looking to the future
As we look toward 2022 and beyond, we expect to see the benefits of
the changes in leadership and operational improvement efforts. We
are confident that Obuasi will demonstrate its qualities as a Tier One
asset as we continue to ramp up and complete the last phase of the
expansion project. We see new opportunities arising at our Nevada
assets to build an additional operational pillar in a proven jurisdiction.
Thanks
I extend my personal thanks to my fellow directors for their
ongoing guidance and commitment throughout the year. On behalf
of the board, I would like to express gratitude to all stakeholders
for their ongoing support, and to every member of the AngloGold
Ashanti team for their efforts and sacrifice during a difficult year.
We are clear-eyed in viewing the task ahead of us, which is to
improve our operating performance and to maintain the very
highest levels of safety and ethics as we work to deliver on our
commitments to all stakeholders.
Maria Ramos
Chairperson
29 March 2022
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AngloGold Ashanti Limited 2021AngloGold Ashanti Limited 2021 CORPORATE GOVERNANCE
AngloGold Ashanti’s board is guided by its commitment
to ensuring that sound governance principles and practices
are embedded at all levels of the Company.
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.
These underpin value creation and the long-term sustainability
of our business and are crucial to the achievement of our
business objectives and delivering on our strategy. AngloGold
Ashanti’s governance structures and processes demonstrate our
commitment to high standards of business integrity and ethics,
and are supported by our values-driven culture and Code of
Business Principles and Ethics (Our Code).
Our Code is the defining document for AngloGold Ashanti’s
values and ethics and, in addition to applicable laws, regulations,
standards and contractual obligations, guides our business
AngloGold Ashanti’s board of directors
In 2021, AngloGold Ashanti reviewed its application of the King IV
principles – ethical culture, good performance, effective control
and legitimacy – and is satisfied that the Company has adopted
these principles and the recommended practices. A statement
on our application of these principles is available online at
www.anglogoldashanti.com.
Board composition
environment, social and governance (ESG) principles, striving to
enhance the economic life of the communities in which we operate
and endeavouring to protect and minimise harm to the environment.
At AngloGold Ashanti climate change is a board-level governance
issue. The board recognises the impacts of climate change that
could exacerbate existing mining-related risks and the effect on
ecosystems, communities and employees. Given the gravity of
climate change, the board has approved a new Climate Change
Strategy which informed the Company’s inaugural Climate Change
Report which is aligned to the recommendations of the Task Force
on Climate-related Financial Disclosures.
independent non-executive directors and two executive directors.
The board acts with independence and its members have the
appropriate competencies and experience to execute their
fiduciary duties.
The board appoints new directors on the recommendation of
the Nominations and Governance Committee, which conducts
rigorous credential 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 are considered in appointing new board members.
Their appointments are subject to shareholder approval at the
annual general meeting following their appointment by the board.
The board ensures AngloGold Ashanti is a responsible corporate
citizen by delivering on financial performance and pursuing
AngloGold Ashanti is governed by a unitary board of directors,
which at year-end consisted of eleven directors – nine
INDEPENDENT NON-EXECUTIVE DIRECTORS
EXECUTIVE DIRECTORS
Maria Ramos (63)
Rhidwaan Gasant (62)
Kojo Busia (59)
Alan Ferguson (64)
Albert Garner (66)
Nelisiwe Magubane (56) Maria Richter (67) Scott Lawson (60)
Jochen Tilk (58) Alberto Calderon (62) Christine Ramon (54)
Independent Non-
Executive Chairperson
MSc, BCom (Hons),
Banker Diploma, Certified
Associate of the Institute
of Bankers (SA)
Appointed: 1 June 2019
and as Chairperson on
5 December 2020
External appointments:
Non-executive director on
the boards of Compagnie
Fin Richemont, Standard
Chartered PLC and
Standard Chartered Bank.
Lead Independent Director
Independent Non-
Executive Director
Independent Non-
Executive Director
Independent Non-
Executive Director
BCompt (Hons), CA(SA),
ACIMA, Executive
Development Programme
PhD, MA, BA
BSc, (Accountancy and
Business Economics),
CA (Scotland)
BSE (Aerospace and
Mechanical Sciences)
Independent Non-
Executive Director
Independent Non-
Executive Director
Independent Non-
Executive Director
Independent Non-
Executive Director
Chief Executive Officer
and Executive Director
Chief Financial Officer
and Executive Director
Pr.Eng, BSc, MBA
BA, Juris Doctor
BSc (Civil
Engineering), MBA
Bachelors Mining
Engineering,
Masters Mining
Engineering
PhD, MPhil, MA, Juris
Doctor, BA
BCompt, BCompt
(Hons), CA(SA), Senior
Executive Programme
(Harvard)
Appointed:
12 August 2010
Appointed:
1 August 2020
Appointed:
1 October 2018
Appointed:
1 January 2015
Appointed:
1 January 2020
Appointed:
1 January 2015
Appointed:
1 December 2021
Appointed:
1 January 2019
Appointed:
1 September 2021
Appointed:
1 October 2014
External appointments:
Chairperson of
Growthpoint Properties
Ltd and a non-executive
director on the board of V
and A Waterfront Holdings
(Pty) Ltd and three other
companies within its
group. Also serves as a
non-executive director on
the board of MTN Nigeria
Communications PLC.
External appointments:
Non-executive
director on the board of
AMV Resources Partners.
External appointments:
Managing director and
vice chair of Investment
Banking at Lazard.
External appointments:
Interim chairperson, senior
independent director
and chair of the audit
committee at Marshall
Motors Holdings. Also
a non-executive director
and chair of the audit
committee at Harbour
Energy.
External appointments:
Chairperson of Matleng
Energy Solutions and the
Strategic Fuel Fund, a
subsidiary of the Central
Energy Fund.
External
appointments:
Non-executive
director on the
boards of Rexel
Group and
Bessemer Trust.
External
appointments:
None.
External
appointments:
Non-executive
director of Emera
Inc.
External
appointments:
Non-executive director
of the International
Council on Mining and
Metals.
External appointments:
Non-executive
director of Melanani
Investments (Pty) Ltd
and Melanani Women
Investments (Pty) Ltd.
Also a member of the
Presidential State-
Owned Enterprise
Council, a director of
AngloGold Ashanti
Holdings plc and
alternate director at the
World Gold Council.
Detailed CVs of directors are available on the corporate website, www.anglogoldashanti.com
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AngloGold Ashanti Limited 2021AngloGold Ashanti Limited 2021 INDEPENDENT NON-EXECUTIVE DIRECTORS
Maria Ramos
Rhidwaan
Gasant
Kojo Busia
Alan Ferguson
Albert Garner
Scott Lawson
Nelisiwe
Magubane
Maria Richter
Jochen Tilk
Alberto Calderon Christine Ramon
EXECUTIVE DIRECTORS
CORPORATE GOVERNANCE continued
Board of directors
Nationality
Board expertise
Board experience
Leadership experience
Strategy development
Environment, health and safety
Mining/engineering
Financial acumen/accounting
Corporate governance/legal
Risk management
Technology and innovation
Human resources/labour
Collective expertise (%)
91
100
100
55
36
64
82
100
36
45
Board committees
C – Committee chair
Audit and Risk
Social, Ethics and Sustainability
Remuneration and Human Resources
Nominations and Governance
Investment
Pursuant to 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, are put forward for
re-election by shareholders. The directors due to retire at the
forthcoming annual general meeting are Maria Ramos, Maria
Richter and Nelisiwe Magubane. They are all eligible and have
offered themselves for re-election. Alberto Calderon and Scott
Lawson, who were appointed since the last annual general
meeting, will be standing for election as directors of the board.
See the .
Independence of directors and conflicts of interest
In determining director independence, we are guided by King IV,
the Companies Act, the JSE Listings Requirements, the NYSE
independence rules and our internal policy on independence, as
well as by best practice. For 2021, all non-executive directors
were assessed as being independent in terms of mind, character
and judgement.
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determine the extent to which the conflict may impact the
performance of 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 or potential conflict is declared at
each meeting.
Tenure
Directors are required to declare their interests annually and
to disclose any conflicts of interest, and when they arise, to
Average tenure of non-executive directors: 4.4 years
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Board diversity
AngloGold Ashanti recognises the benefits of promoting broader
diversity at board level, including diversity of gender, race and
ethnicity, culture, age, field of knowledge, skills and experience, and
geography. These attributes are considered in determining the optimal
composition of the board as well as succession planning, and when
possible will be balanced appropriately for the board to be effective as
a whole.
For AngloGold Ashanti to leverage the benefits of a globally diverse
board, the board introduced a racial diversity target of 50% black
representation (including African, Indian, Coloured and other foreign
black nationals) on the board. In addition, to promote gender diversity,
a target of at least 40% female board members was established.
In 2021, female representation on the board declined from 44%
(2020) to 36% and black representation and historically
disadvantaged individuals (HDIs) declined from 44% (2020) to 36%.
The board recognises that much remains to be done to reach its
diversity targets.
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Promoting diversity at board level
GENDER
DIVERSITY
(Target 40%
female)
RACIAL
DIVERSITY
(Target 50%
Black)
GEOGRAPHICAL
DIVERSITY
AGE
DIVERSITY
Female
Male
Black
Other
South
African
Other
nationalities
Between
50 and 59
Between
60 and 69
36% (2020: 44%)
64% (2020: 56%)
36% (2020: 44%)
64% (2020: 56%)
36% (2020: 44%)
36% (2020: 44%)
64% (2020: 56%)
64% (2020: 56%)
Average age:
62 years (2020: 60 years)
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Non-executive directors: Time on board12240.00.51.01.52.02.53.03.54.0Less than 3 years3 to 5 years6 to 8 years9 years or longerAngloGold Ashanti Limited 2021AngloGold Ashanti Limited 2021
CORPORATE GOVERNANCE continued
Directors’ dealings in shares and
closed periods
In accordance with statutory and regulatory requirements,
directors, prescribed officers 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 Chairperson to
deal in the Company’s securities.
The Chairperson of the board must obtain written approval from
the lead independent director, or in his/her absence, the chairperson
of the Audit and Risk Committee. The company secretary retains
a record of all such share dealings. For prescribed officers written
approval must be obtained from the Chief Executive Officer (CEO)
before dealing in AngloGold Ashanti securities.
Directors’ time commitments and
external appointments
The board appreciates the benefits that wider boardroom
exposure provides for directors. However, the number of external
appointments undertaken by a director is monitored to ensure
that adequate time is committed to AngloGold Ashanti, and the
effective discharge of the director’s duties and responsibilities, as
well as to align with shareholder advisory companies’ guidelines
on overboarding. When making new appointments the board
takes account of other demands on a potential director’s time and,
prior to appointment, significant commitments are required to be
disclosed with an indication of the time involved.
For existing directors, additional external appointments must not be
undertaken without prior approval of the Chairperson of the board to
ensure that directors have sufficient time to dedicate to the affairs
of the Company. Additional directorships for the Chairperson are
subject to approval by the lead independent director.
Details of the directors’ external appointments can be found on
pages 16 and 17.
Non-executive directors’ minimum
shareholding requirements
The board recently approved a minimum shareholding policy for non-
executive directors, in order to strengthen the alignment between the
interests of non-executive directors and those of AngloGold Ashanti’s
shareholders and to ensure long-term sustainable decision making.
Non-executive directors are required to acquire and hold a
minimum shareholding in AngloGold Ashanti shares, equivalent to
150% of their annual base fee within 4 years of the effective date
of the policy, namely February 2022, for existing non-executive
directors, and from the effective date of appointment for new
non-executive directors. However, a non-executive director may
not hold shares in AngloGold Ashanti which are material to his/her
personal wealth, as this may adversely impact the non-executive
director’s independence.
Executive directors
Alberto Calderon was appointed as CEO with effect from
1 September 2021, at which point Christine Ramon, who had
been the Interim CEO from 1 September 2020, resumed her role
as chief financial officer (CFO) and Ian Kramer, the Interim CFO,
resumed his role as Senior Vice President: Group Finance.
The Company has subsequently announced that Christine Ramon
has elected to take early retirement from her role as CFO at the end
of June 2022. A process to identify a new CFO has commenced,
with a view to enabling a smooth transition to a successor.
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 the
appropriate expertise and experience to manage the Group’s
financial affairs during 2021, as detailed in the CFO’s review and
Audit and Risk Committee chairperson’s report, which are included
in the .
Board and committee structure and delegation of authority
AngloGold Ashanti board
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 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 ,
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 the Group ethics and
regulatory compliance programme
• • Ensures the Company has qualified
independent external auditors and
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
Remuneration and Human Resources
Committee
• • Assists the board in ensuring that AngloGold
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
Ashanti remunerates fairly, responsibly
and transparently so as to promote the
achievement of strategic objectives and
positive outcomes in the short, medium and
long term
• • Reviews, oversees and, where appropriate,
approves human resources group policies
and strategies aimed at creating and
sustaining the technical and managerial
excellence required to support the attainment
of the Company’s global objectives and
achieve a globally competitive workforce
More information on the achievements of the
committee is available in the Remuneration
and Human Resources Committee
chairperson’s report
Nominations and Governance
Committee
• • Assists the board in the implementation
of programmes to ensure that the board’s
composition and size is appropriate at all
times, oversees the annual evaluation of the
board and its committees, as well as the
independence assessment and qualification
and competence of the company secretary
• • Considers the extent to which the general
corporate governance mechanisms and
frameworks of the Company are appropriate
and effective, and makes appropriate
recommendations to the board
• • Develops processes to identify, assess and
recommend board candidates for appointment
as executive and non-executive directors,
including the Chairperson and CEO, as well as
the company secretary, and at the same time
considers succession planning for the board
Investment Committee
• • Assesses individual capital projects
and investment and divestment
opportunities to ensure that they
are in accordance with AngloGold
Ashanti’s primary mission to create
sustained shareholder value in the
long term
• • Ensures that project and investment
evaluation guidelines, including
appropriate strategic, operational,
financial, technical and sustainability
guidelines and other procedures
for the allocation of capital, are
consistently and properly applied
• • Oversees the integrity of and
approves the
The latest approved board charter
and committees’ terms of references,
containing detailed information regarding
their respective responsibilities and
mandates, are available online.
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As CEO, Alberto Calderon is responsible for the execution of AngloGold Ashanti’s strategy and reports to the board. He chairs the 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.
Executive Committee
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See Governance on www.anglogoldashanti.com
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AngloGold Ashanti Limited 2021AngloGold Ashanti Limited 2021
CORPORATE GOVERNANCE continued
Board and committee meeting attendance
Directors’ attendance at board and committee meetings during 2021 was as follows:
Internal evaluation process
Board (8) Audit and Risk
Investment
Remuneration
and Human
Resources (9)
Social,
Ethics and
Sustainability
Nominations
and
Governance (10)
Special
Committee (11)
14
14
13
5
14
14
13
0
14
13
14
14
6
n/a
n/a
n/a
6
n/a
5
n/a
3
n/a
6
6
6
n/a
6
n/a
n/a
6
5
1
n/a
6
n/a
6
11
2
n/a
n/a
11
11
8
n/a
n/a
n/a
11
n/a
6
6
6
n/a
n/a
n/a
n/a
0
6
n/a
n/a
6
20
20
19
n/a
19
n/a
20
n/a
n/a
n/a
19
20
2
2
n/a
n/a
n/a
2
2
n/a
n/a
n/a
n/a
2
Number of
meetings in 2021
MDC Ramos (1)
KOF Busia (7)
A Calderon (2)
AM Ferguson
AH Garner
R Gasant (3) (7)
SP Lawson (4)
NVB Magubane (5)
KC Ramon (6)
MC Richter
JE Tilk
(1) MDC Ramos stepped down from the Remuneration and Human Resources Committee on 18 February 2021.
(2) A Calderon was appointed to the board on 1 September 2021.
(3) R Gasant was appointed to the Remuneration and Human Resources Committee on 18 February 2021.
(4) SP Lawson was appointed to the board with effect from 1 December 2021.
(5) NVB Magubane was appointed to the Audit and Risk Committee with effect from 4 May 2021.
(6) KC Ramon had a conflict of interest in respect of the matter being discussed and therefore recused herself from one board meeting.
(7) A number of special board meetings were held during the year, impacting the ability of our directors to attend all meetings. All directors who were unable to attend
received accompanying material and had opportunities to provide comment.
(8) During 2021 the board held five scheduled meetings and nine special meetings.
(9) The Remuneration and Human Resources Committee held four scheduled meetings and seven special meetings in respect of the appointment of leadership roles.
(10) During 2021 the Nominations and Governance Committee held four scheduled meetings and 16 special meetings in respect of the recruitment
of a CEO and non-executive director.
(11) The Special Committee was established in 2020 to provide oversight for various aspects of the Company’s strategy.
Board and committee performance
evaluations
Unless determined otherwise by the board, an evaluation of the
board, its committees, the Chairperson and individual directors
shall be carried out at least every two years, and every alternate
year, an opportunity is provided for consideration, reflection
and discussion by the board of its performance and that of its
committees, the chairperson and its members.
The evaluation of the performance and effectiveness of the board
and its committees was internally assessed for the 2021 year.
The evaluation indicated a pleasing improvement in the overall
effectiveness of the board from 76% in 2020 to 81% in 2021,
illustrating a high degree of alignment between governance
structures and best practice. Of the areas evaluated, the strongest
performance was found in the board’s responsibility for the
governance of ethics and establishment of an ethical culture
within AngloGold Ashanti. Importantly, members of the board,
individually and collectively, are considered to cultivate and exhibit,
integrity, competence, responsibility, accountability, fairness and
transparency in their conduct.
The board’s arrangements for delegation within its governance
structures positively promotes independent judgement and
assists with the balance of power and the effective discharge
of the board’s duties. In addition, the board effectively ensures
that the Company remunerates employees fairly, responsibly
and transparently so as to promote the achievement of strategic
objectives. The evaluation also revealed that the board has a
profound appreciation of the requirement for a stakeholder-
inclusive approach that balances the needs, interests and
expectations of stakeholders.
Areas observed as requiring further attention included the
continuous oversight of the advancement of strategic and
operational performance, and while recent appointments have
further facilitated the board’s effectiveness, consideration should
continue to be given to the enhancement of skills and experience
on the board.
Subsequent to considering the results of the evaluation, the
board introduced action plans to address areas that require
further attention.
Nominations and
Governance Committee
agrees approach and
reviews evaluation
questionnaires
Action plans for the board
and each committee
are developed based on
the results. Progress
against these plans will be
monitored during 2022
Questionnaires are
completed by
directors online
Company secretary
prepares evaluation reports
Board and each committee
discuss the results
Results are shared with the
Chairperson of the board
and committee chairs
Company secretary
The company secretary 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. The company secretary advises the
board and individual directors on their fiduciary duties and on
corporate governance requirements and best practices.
The former Group company secretary, Lucy Mokoka, resigned
from the Group with effect from 31 December 2021 and the
board appointed Leeanne Goliath as Group company secretary
with effect from 1 January 2022. Leeanne has experience as a
company secretary and in corporate governance and securities
and exchange regulatory requirements applicable in South Africa
and other jurisdictions, gained during her tenure working in
regulated and listed companies. Leeanne holds BCom and MBA
degrees as well as certificates for the Management Advanced
Programme and in Advanced Company Law. The board is of the
view that Leeanne has the necessary expertise and experience to
act in this role, in accordance with the JSE Listings Requirements.
Other governance practices
Legal, ethical and regulatory compliance
The Group’s geographical spread makes its legal and regulatory
environment diverse and complex. The board has oversight
for ensuring that the Company complies with applicable laws
and regulations, codes and standards, and has delegated this
responsibility to the Audit and Risk Committee. Group Compliance
plays an essential role in the management of designing and
implementing appropriate compliance policies and procedures.
During 2021, Group Compliance continued with activities aimed
at enhancing the Company’s governance. Key among these
activities were:
• • Ongoing anti-bribery and anti-corruption induction training to
all new employees. The training covers anti-bribery and anti-
corruption, payments to government officials, gifts, hospitality
and sponsorships, engagement of agents and intermediaries,
conflicts of interest, reporting wrongdoing, and political donations
and activities
• • Tracking and monitoring compliance with laws and regulations,
including self-certification processes and legal registers,
by country
• • AngloGold Ashanti continued to have a robust whistleblowing
platform, administered by a third-party, to which all employees,
directors, officers and external parties have access via hotlines,
email and web facilities. Reporting is anonymous unless the
reporter specifically nominates to disclose his or her identity.
All concerns are carefully investigated, and feedback is provided
through the third-party service partner to the person raising the
concern. Whistleblowing results are communicated quarterly
to the Audit and Risk Committee as well as the Social, Ethics
and Sustainability Committee and to the Serious Concerns
Committee, a management committee. Whistleblowing plays a
key role in giving credence to the board’s commitment to ethical
leadership and responsible corporate citizenship
Compliance
with laws and
regulations
Fraud, bribery
and corruption
Conflicts
of interest
Gifts, hospitality
and sponsorship
Responsible
sourcing
Confidential
reporting
Compliance risk
assessments
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AngloGold Ashanti Limited 2021AngloGold Ashanti Limited 2021 CORPORATE GOVERNANCE continued
• • Continued development of a compliance programme aligned
with “best practice” principles identified by, among others,
bodies responsible for the prosecution of violations of key extra-
territorial legislation such as the US Foreign Corrupt Practices
Act, and that are adaptable at an operational level to enhance the
effectiveness of the compliance framework
• • Continued embedding of our responsible sourcing programme
to align suppliers with our business ethics and values. Our
supplier Code of Conduct encourages all our suppliers, including
contractors, to align their businesses with our internal policies
and codes of ethical behaviour, particularly on human rights
practices, labour relations and employment practices, the
environment, our anti-bribery and corruption policies, and
safety procedures, policies and standards. Our approach with
suppliers involves ensuring responsible environmental, social and
governance practices are carried out by those we associate and/
or do business with. Suppliers are assessed on their governance
conduct in addition to their socio-economic behaviour
• • Regular assessment of the automated registers for gifts,
hospitality and sponsorship and conflicts of interest
• • Business unit assessments for risks related to bribery and
corruption, including virtual assessments as part of our
combined assurance audit programme
External and internal standards and regulations
AngloGold Ashanti complies with legislative and regulatory
requirements, including several external and voluntary industry
and international standards and recommendations that are
relevant to the business.
AngloGold Ashanti is a member of, and a signatory to, the:
• • International Council on Mining and Metals (ICMM)
• • Principles of the United Nations Global Compact (UNGC)
• • Extractive Industries Transparency Initiative (EITI)
• • United Nations Guiding Principles on Business and
Human Rights
• • Voluntary Principles on Security and Human Rights (VPSHR)
• • World Gold Council’s Conflict-Free Gold Standard and
Responsible Gold Mining Principles
• • International Cyanide Management Code
• • Responsible Gold Mining Principles
• • Sustainability Accounting Standard Board
We are committed to complying with the following standards:
• • Universal Declaration on Human Rights
• • International Bill of Human Rights
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.
In view of the growing climate crisis, AngloGold Ashanti has issued
its inaugural Climate Change Report in line with the guidelines and
recommendations of the Task Force on Climate-related Financial
Disclosures, reflecting its commitment to mitigating current and
future climate risks.
By virtue of its securities being registered with the United States
Securities and Exchange Commission (SEC), AngloGold Ashanti
is also subject to the various securities laws applicable in the
United States. This is in addition to being subject to the various
listing requirements applicable for all the stock exchanges on
which the Company’s shares or depositary receipts are listed.
These are the Johannesburg, New York, Ghana and Australian
stock exchanges.
Governance of supply chain management and
procurement policies
Effective supply chain management, undertaken with integrity and
in line with our values and governance principles, adds value to
our business, by improving efficiency, relationships and reputation,
ultimately, impacting our long-term sustainability. As a global
company, responsible management of our supply chain is an
increasingly important ethical and human rights consideration.
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.
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.
We recognise that AngloGold Ashanti must earn and maintain
its social licence to operate in partnership with government and
community stakeholders, thus contributing towards our 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.
• • Corporate citizenship: We engage with tax authorities in the
countries in which we operate in an open and fair manner. We
support sustainable relationships in dealing with global tax
authorities. We communicate with tax authorities to resolve
uncertainties as soon as practical.
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 transparency and tax
Our approach to tax is underpinned by the AngloGold Ashanti
values, which include accountability for our actions and delivering
on our commitments. We also value the communities and
societies in which we operate and want them to be better off for
AngloGold Ashanti having been there.
The principles set out below govern our global approach to tax:
• • Compliance: We respect and comply with the legal framework of
the countries in which we operate, meeting all our tax obligations
on time. We comply with local and global rules with respect to
transfer pricing and cross-border transactions.
• • Transparency in our dealings with governments: We are
transparent with regard to the taxes paid to governments as
we believe that this allows our stakeholders to understand the
contribution which we make and the integrity of our tax systems.
• • Risk management and governance: We are committed to
strong governance. We identify, investigate, assess and report
tax risks in terms of our global audit and risk framework. On a
quarterly basis, we report on tax risks and uncertainties to the
Audit and Risk Committee.
• • Business rationale: We undertake our transactions against a
test of their commercial rationale. We seek to manage our tax
affairs in a manner that contributes to sustainable business
performance and long-term shareholder value. Accordingly, we
do not engage in aggressive tax planning.
• • We advocate fair tax treatment: We engage in the tax reform
processes of international tax rules and local tax rules in
the jurisdictions in which we operate. This supports the
principle that tax systems should be fair, certain, efficient and
competitive in order to support growth, jobs and long-term
sustainable tax contributions.
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AngloGold Ashanti Limited 2021AngloGold Ashanti Limited 2021
OUR EXTERNAL OPERATING ENVIRONMENT
The environment in which AngloGold Ashanti operates is dynamic and often complex, with external
factors beyond our control influencing delivery on our strategy and our ability to create value.
The COVID-19 pandemic, in its second full year, had direct and
indirect impacts which created new and ongoing challenges in
our operating environments and wider society. These included
the more obvious direct impacts of increased absenteeism
Against this backdrop, investors increased the call for companies
in which they invest to improve their own sustainability practices,
governance and their contribution to society while reducing their
impact on the environment.
due to illness and quarantine requirements as new variants
Externally, AngloGold Ashanti was primarily affected by:
of the virus brought new infection peaks, but also increased
• • COVID-19 pandemic
shortages of critical skills in jurisdictions where travel and
border restrictions shrunk the labour pool. These phenomena
also disrupted global supply chains, exacerbating inflationary
• • Global geopolitics and macro-economics, including inflationary
pressures amid labour shortages, supply chain disruptions and
energy shortages
pressures, including for key goods and services used in our
• • Growing climate crisis and increasing pressure to decarbonise
production processes. Societal implications of the pandemic
operations
remain significant, including heightened geopolitical tensions,
• • Uncertain and increasingly rigorous regulatory requirements
ongoing uncertainty, increasing inequality and rising poverty, and
• • Increasing stakeholder and societal expectations in respect of ESG
strains on physical and mental well-being of employees, their
performance and disclosures
families and communities.
• • Pressure from international credit ratings
COVID-19 pandemic
Explanation and impact
The pandemic has had far-reaching social and economic impacts
during its second year.
Our response
• • Actively worked to mitigate the impact of significant disruptions,
operational or otherwise, due to COVID-19
As governments rolled out measures to limit the spread of the
virus, the normal running of operations was affected by illness,
quarantine requirements, lockdowns and ever-changing travel
restrictions, all of which continue to hamper economic growth in
key sectors and erode societal norms.
• • Supported host governments, NGOs and communities
• • Established a cross-functional team to manage crisis response
• •
• •
Implemented strict operating protocols at all operations
Implemented site contingency plans under regular testing and review
• • Halted non-essential travel and tighten approvals for essential travel
• •
• •
Increased awareness, surveillance and screening
Implemented strict quarantine and isolation protocols
Outlook
Although several vaccines have been approved in certain jurisdictions, vaccine demand will likely far outstrip supply for some time.
Vaccine programmes are largely directed by governments and influenced by the regional availability of doses. We are actively monitoring
the situation and have in place vaccine protocols and guidance aligned with host government policies.
We are committed to ethical and responsible sourcing of vaccines in a manner that does not disadvantage vulnerable and high-risk
groups. We are working to ensure that our high-risk employees and their families are included in national priority lists and vaccination
programmes. We are raising awareness of the safety and efficacy of vaccines among our workforce, and are using workplace policies to
combat vaccine disinformation and hesitancy.
Related strategic focus areas
• • Focus on people, safety and sustainability
• • Optimise overhead, costs and capital expenditure
Global macro-economics and geopolitics, including inflationary pressures amid labour
shortages, supply chain disruptions and energy shortages
Explanation and impact
Economic uncertainty and heightened geopolitical tensions impact several factors that can
influence commodity prices, exchange rates, and interest rates. These factors, together
with investor sentiment, influence the gold price, which in turn affects the financial results
of our business.
The COVID-19 pandemic led to economic shutdowns around the world. The International
Monetary Fund estimates that the global economy rebounded in 2021, with growth of 5.9%
compared to a contraction of 3.5% in 2020.
Inflation, which reached 7% in the US at the end of 2021 – its highest level in almost two
decades – remained a key risk amid increased economic stimulus since the onset of the
pandemic, rising energy prices, and shortages of labour in key parts of the world’s supply chain,
among other things.
The gold price received averaged $1,796/oz in 2021, which, although high relative to
the average price over the past decade, was little changed from the $1,778/oz the prior
year. Continued price increases amid rising inflationary expectations were countered by
expectations of rising interest rates as monetary authorities in the world’s largest economies
signalled their willingness to raise interest rates to check rising prices.
The unprovoked invasion of Ukraine by Russian forces in late February 2022 has caused
enormous suffering and loss of life as well as significant disruption to financial and commodity
markets. As of the time of completing this report, in late March 2022, prices for several hard and
soft commodities had reached their highest levels in a decade or more, or in some cases had
set records. Brent crude oil touched levels not seen since 2012, copper advanced to its highest
level ever. Corn and wheat both soared to multi-year highs. Gold responded as it should in
times of inflation and geopolitical stress, exceeding $2,000/oz in early March. While it is unclear
whether these sudden price spikes will endure, the higher cost for basic commodities used in
our host countries and communities, and as key production inputs, could impact our costs.
Our response
• • Rigorously managed those variables in
our control
• • Started implementation of a new
Operating Model during the fourth
quarter of 2021 to reduce overhead
costs, improve effectiveness by
simplifying organisational structure
and locating resources closer to
each operation to ensure their delivery
on-budget
• • Renewed emphasis on our ‘Operational
Excellence’ initiatives to optimise
operating processes and reduce costs,
while ensuring our workforce is fully
engaged and appropriately skilled
• • Continued investment in capital
projects that will increase
grade, lengthen mine lives and widen
margins over the medium-to-long term
• • Strengthened the balance sheet by
reducing debt, increasing the tenor of
borrowings and lowering the average
interest rate
• • Disciplined capital allocation for
exploration projects to extend mine life
and improve the quality of our portfolio
Outlook
A robust economic recovery in the US, Europe and China, coupled with severe complications in the global supply chain, has brought with
it accelerating inflation and the prospect of rising interest rates. The pace at which the US Federal Reserve is prepared to raise interest
rates to combat inflation will have a direct impact on gold prices in the year ahead. The focus of the business will be to lower costs and
ensure profitability at lower gold prices.
Related strategic focus areas
• • Improve portfolio quality
• • Enhance financial flexibility
• • Optimise overhead, costs and capital expenditure
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AngloGold Ashanti Limited 2021AngloGold Ashanti Limited 2021
OUR EXTERNAL OPERATING ENVIRONMENT
continued
Growing climate crisis and increasing pressure to decarbonise operations
Uncertain and increasingly rigorous regulatory requirements
Explanation and impact
Changing rainfall patterns, rising sea levels, higher temperatures,
reduced supply of industrial and potable water and severe
weather conditions caused by global climate change remain
growing concerns for businesses, investors, broader society
and governments. This has led to growing pressure to reduce
greenhouse gas (GHG) emissions and to limit energy and water
usage and to promote responsible practices in line with the
Conference of the Parties (COP) on Climate Change, the Paris
Agreement, the SDGs and other benchmarks.
Our response
• • Maintained focus on improving ESG performance and developing
a Climate Change Strategy for the business
• • Concluded physical risk assessments covering different climate
scenarios and issued our inaugural Climate Change Report in line
with the guidelines and recommendations of the TCFD
• • After meeting our initial climate targets in 2018, started detailed
work on new 2030 GHG emissions targets
• • Recommitted to net zero Scope 1 and 2 GHG emissions by
2050 and, in partnership with our value chain partners, to set
Scope 3 GHG reduction targets, if not by the end of 2023, as
soon as possible thereafter
• • Climate Change Working Group continued its focus on the
related strategy and transition processes, and will oversee
implementation of the new Climate Change Strategy adopted
in 2021
• • Maintained compliance with our corporate frameworks, standards
and guidelines, as well as external ones including the ICMM and
the World Gold Council’s Responsible Gold Mining Principles,
among others
Outlook
Pressure from governments, investors and broader society to improve environmental stewardship and reduce GHG emissions is likely to
intensify, both in absolute terms and in terms of consumption rates per tonne mined. This trend is being driven by national commitments
under the Paris Agreement to limit average global temperature increases to less than 1.5 degrees Celsius by 2050. To achieve this, global
emissions are projected to need reductions of 8-10% annually between 2020 and 2050. Work is ongoing to set new medium-term targets,
and then to progress work toward charting a pathway to net zero Scope 1 and 2 GHG emissions by 2050. Our power mix already includes
hydro-electric energy in the DRC and Brazil, while our planned Colombia projects will be largely hydro-powered. Our Australian operations,
previously powered by diesel generators, presently use natural gas.
Related strategic focus areas
• • Focus on people, safety and sustainability
• • Improve portfolio quality
• • Maintain long-term optionality
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Explanation and impact
Regulatory certainty facilitates decision-making in relation to
long-term investments in mining assets with lives spanning several
decades. Regulatory changes relating to mining rights, the payment
of taxes and royalties, and operating, closure and decommissioning
requirements can impact investment returns.
Our response
• • Engaged constructively with governments, local stakeholder
groups and regulators to optimise the shared value and benefits
derived from the orebody among stakeholders
• • Carefully monitored regulatory changes to ensure compliance and
to facilitate long-term planning
More onerous regulations can result in an increased cost of
compliance, which may be compounded by uncertainty in the
understanding or application of legislation. This can affect the
financial position of the business and its sustainability as well as
relationships with government and regulators.
Outlook
While we engage regularly with all governments and regulators, particular attention is given to negotiations with regulators in Colombia
(on mining and environmental permitting), Tanzania (on taxation), Brazil (on evolving legislation on TSFs) and countries in Africa (Guinea,
Tanzania and Ghana) that are considering legalising or formalising small-scale and artisanal mining. With respect to TSFs, we remain
committed to implementing the Global Industry Standard on Tailings Management, and the conversion of our TSFs in Brazil to dry-
stacking is well advanced. We engage with host governments and monitor and evaluate actual or anticipated regulatory changes, for
timely implementation and compliance.
Related strategic focus areas
• • Focus on people, safety and sustainability
• • Enhance financial flexibility
• • Maintain long-term optionality
Increasing stakeholder and societal expectations in respect of ESG performance and disclosures
Explanation and impact
Companies, particularly those in the extractive industries, face
increased scrutiny worldwide from an array of stakeholders:
• • Providers of capital and ratings agencies have increasing
expectations relating to financial, operating and ESG performance
• • Governments’ expectations relate to contributions to the fiscus
and to national and local economies, as well as partnerships to
facilitate service delivery and social and economic development
• • Communities’ expectations relate to socio-economic benefits
– local employment and procurement opportunities, and the
provision of infrastructure, healthcare and education
Our response
• • Engaged constructively with stakeholders to better understand
their requirements, to consistently manage their expectations, and
to secure and maintain our social licence to operate
• • Delivered on related strategic objectives and commitments
• • Ensured responsible corporate citizenship, in line with our values
• • Maintained and improved our ESG performance – set targets and
transparently reported progress made in meeting these targets
• • Created shared value for communities in host countries – through
employment and procurement opportunities, and by investing in
socio-economic initiatives that promote long-term resilience and
self-sufficiency
Outlook
There has been increasing expectation from governments, investors and broader society for greater disclosure on ESG matters as well
as performance and sustainability metrics in general. On disclosure, we have comprehensive ESG data sets available on our website,
and we will continue to participate annually in a number of ESG rating agency surveys and aim to respond promptly to related queries.
We have continued to provide support to our host communities with respect to their responses to the COVID-19 pandemic. For more
detail, see our .
Related strategic focus areas
• • Focus on people, safety and sustainability
• • Enhance financial flexibility
• • Maintain long-term optionality
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OUR EXTERNAL OPERATING ENVIRONMENT
continued
Pressure from international credit ratings
Explanation and impact
As the ratings agencies assess the credit risk of a company and its
ability to honour its debt obligations, the assessments sometimes
take into account the jurisdiction within which the company is
located or operates since the country’s political, economic and
regulatory environment can have an impact on the company.
Our response
• • Engaged regularly with ratings agencies to ensure an
accurate understanding of our potential operating and
financial performance
• • Continued to look at operational efficiencies that will make our
mines more consistent in production, more resilient to gold price
volatility and thus provide stable and sustainable cash flows
• • Current company ratings are as follows:
• • S&P: BB+/positive
• • Moody’s: Baa3/negative
• • Fitch: BBB-/stable
Outlook
South Africa’s sovereign rating by Fitch, Moody’s and S&P will continue to determine whether and by how much our credit rating can
improve, as our corporate rating cannot be more than two notches above the sovereign rating of our country of domicile (South Africa).
We also remain exposed to other lower-rated sovereign countries. Our overall credit rating has improved since 2019, a result of a more
stable operating performance, improved cash generation, and consistent delivery on our strategic objectives, with the agencies taking
greater account of the consistent delivery on our strategic objectives.
Related strategic focus areas
• • Improve portfolio quality
• • Enhance financial flexibility
Principal uses of gold
Investment
• • Gold is a long-term store of value independent of other assets. As
its price often moves contra-cyclically, it can protect or enhance
the performance of an investment portfolio and reduce volatility.
Demand for gold rose 10% in 2021, with increases in most areas
including central bank buying and jewellery sales, as broader
economic uncertainty and inflationary fears remained and
consumer markets rebounded from poor sales during the first
year of the pandemic in 2020
• • Central banks are also a strong source of demand, with volumes
having increased steadily over the past decade
Jewellery
• • Historically, gold jewellery has been the strongest source
of demand, accounting for around 50% of total demand. In
2021, jewellery demand rose 52%, recovering from losses
sustained during 2020. The largest gold jewellery markets
are India and China
Medicine and dentistry
Technology, aerospace, environment
• • Gold nanoparticles are used in rapid diagnostic testing, which
have helped to revolutionise the diagnosis of diseases such as
HIV/Aids
• • Gold-based drugs are being developed to treat diseases such as
• • Gold wire is widely used in almost all electronic devices that
make the Internet function – computers, mobile phones, global
positioning systems, etc. As an efficient and reliable conductor
and connector, it enables the rapid, accurate transmission of data
rheumatoid arthritis
• • In space, layers of gold are used to protect astronauts and
• • Gold nanoparticles deliver anti-cancer drugs directly to tumours
equipment from heat and radiation
• • Gold’s being malleable and non-allergenic makes it ideal for
• • Gold nanoparticles are used to improve the efficiency of solar
use in dentistry
cells and panels
• • Environmentally, nanoparticles are used to clean contaminated
groundwater by breaking down pollutants
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INTEGRATED STAKEHOLDER ENGAGEMENT
Effective management of stakeholder relationships has a direct
bearing on our ability to deliver on our strategy and create value.
Engaging key stakeholders
We have identified our key stakeholders, the significance of our engagement with each, their primary concerns and expectations, and our
response to those concerns and expectations. In addition, we have conducted self-evaluations of the quality and nature of our relationship
with each stakeholder grouping as follows:
Strong = collaborative and mutually advantageous
Cordial = sufficiently involved to achieve common goals
Weak = requires some effort and consultation to achieve consensus
Our approach to and rationale for
engagement
We are committed to collaborative stakeholder engagement. Our
stakeholder engagement process is integrated and inclusive,
and seeks to balance the needs, interests and expectations of
stakeholders with those of AngloGold Ashanti. It is critical at every
stage of our business, from exploration through to mine closure.
Our engagement structures aim to help us navigate the political,
regulatory and legislative environments in which we operate,
to provide insights into potential risks, opportunities and key
issues, enabling us to better manage and act on these potential
risks, opportunities and issues in order to maintain our social
licence to operate.
Oversight and accountability
The board has ultimate responsibility for stakeholder
engagement. The Social, Ethics and Sustainability
Committee assists with oversight of our stakeholder
engagement framework and structures. The committee
reviews the framework and engagement annually.
Key stakeholders
Investment community
Quality of engagement: Strong
Includes: Shareholders, current and future investors, debt funders and other providers of capital.
•
Investment community
This stakeholder group represents the principal providers of financial capital. Engagement is with both international and local
institutional and private investors and fund managers as well as investment and ESG analysts and financial media.
• Employees, including unions
Transparent and consistent engagement on our performance, delivery on our strategy, and managing expectations can enhance investor
sentiment and our reputation and improve access to capital and our market valuation. The CEO, CFO and Chief Corporate Affairs and
Sustainability Officer, supported by the investor relations team, are responsible for shareholder engagement. Such engagement, which is
regular and done through a variety of channels, is conducted in line with our listing and exchange requirements.
• Governments and regulators
Key issues of engagement
Our response
• Communities
• Suppliers
• • Appointment of CEO and new approach
• • Maintained engagement with shareholders, analysts, debt holders and other lenders
throughout the year via quarterly market reporting, trading statements, conference
calls and investor conferences
• • Board engagement with shareholders, including the Annual General Meeting, regarding
the process to appoint a new CEO
• • Once appointed, the new CEO engaged with investors and analysts on results calls,
meetings and through presentations at both the FT Mining Summit and Denver Gold
Forum, where he outlined his strategy and the planned new Operating Model
•
Industry partners and peers
• • Financial and operating performance
• • Provided detail on financial and operating performance
• • Continued strengthening of the balance sheet to better weather short- and medium-
term volatility in gold price and the general operating environment
• • Debt consolidation
• • Communicated areas of delivery on strategy
• • Cash lock-up challenges
• • Provided detail on strategy for dealing with cash lock-ups in DRC, Tanzania
and Argentina
• • Obuasi suspension of underground activities
• • Communicated the causes of the Obuasi underground production stoppage and
and restart
• • Climate approach
timing of the subsequent restart
• • Developed a new Climate Change Strategy and presented our first Climate Change
Report outlining our approach to dealing with the risks and opportunities that come
with climate change and extreme weather – see
• • Recommitted to the ICMM’s target of net zero Scope 1 and 2 GHG emissions by 2050;
revising our medium-term targets to cut GHG emissions further by 2030
• • ESG performance
• • Delivered regular feedback on ESG-related performance
• • COVID-19: first- and second-order impacts,
• • Provided information on impact of the pandemic on the business and our response in
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namely, public health impacts (absenteeism,
quarantines, lockdowns) and the consequent
effects of labour shortages and accelerating
inflation on economies
managing it
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INTEGRATED STAKEHOLDER ENGAGEMENT
continued
Employees and unions
Quality of engagement: Cordial
Governments and regulators
Quality of engagement: Cordial
Includes: All employees as well as their representative labour unions at certain operations
Employees, our human capital, provide the labour, knowledge, skills and expertise necessary for the efficient operation of our business
and successful delivery on our strategy. Constructive employee engagement promotes stable employee relations, enhances productivity
and ensures alignment on our strategic objectives.
Line management, supported by the human resources function, is the main point of engagement. Engagement is frequent and ongoing,
formal and informal and includes official communications issued by the business, regional and company-wide town hall meetings,
in-house presentations and awareness campaigns on various topics such as safety, health, business performance, the new Operating
Model and COVID-19 updates. Communication media used includes email, newsletters, employee briefs, WhatsApp, the intranet and
personal communication with line management. Union engagement is more formal and structured.
Key issues of engagement
Our response
• • Implications of new Operating Model and
• • Focused employee engagement across all levels
organisational restructuring
• • CEO held several employee town halls, one-on-one and small group meetings, issued
numerous briefs to communicate revised priorities and the importance and benefits of
the new Operating Model
• • Safety
• • Three-year work plan introduced in 2021 to revitalise safety strategy
and performance
• • Organisational culture
• • Culture survey, conducted in line with the Barrett model, indicated current culture
is concentrated at the evolutionary phase, indicating employees are experiencing a
significant degree of transformation and change, and are willing to continue changing
and growing. See and Culture survey case study
• • Obuasi suspension of underground activities
• • Communicated the causes of the Obuasi underground production stoppage,
and restart
remediation steps taken, and timing of the subsequent restart
• • COVID-19 – response and management
• • Implemented COVID-19 protocols tailored to each operation – accompanied by a
• • Productivity, maintaining focus on strategy
and meeting guidance on production and
other performance metrics
focused communications plan
• • Ensured no employee lost wages or benefits related to COVID-19 lockdowns and
other disruptions
• • New Operating Model implemented – focused communication by line managers to
reinforce delivering in line with strategy
Includes: National, regional, local governments as well as various regulators and departments (mining, environmental, social,
labour, taxation)
Government and regulators develop and implement legislation and associated regulations that can significantly affect AngloGold
Ashanti or one or more of our operations. Ongoing engagement aims to communicate the state of the business and its challenges
and opportunities, to mitigate regulatory and political risks, encourage certainty, strengthen our social licence to operate and generally
promote an environment conducive to investment and development. Proactive engagement with governments includes regulatory
submissions, formal and informal discussions on significant issues, and service delivery collaborations.
Direct engagement by corporate and site teams with national, regional and local governments in each jurisdiction continued through the
year, alongside engagement with those parties through industry bodies.
The subject matter covered in these engagements spanned a variety of issues, from updates on our operating performance to the status
of various projects and communication about the benefits of our operations to local communities and value chains. These meetings
also allowed our teams to remain abreast of changing political and regulatory dynamics.
Key issues of engagement
Our response
• • Compliance
• • Regulatory changes
• • Political changes
• • Group Compliance plays an essential role in co-ordinating 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
• • Ongoing monitoring of compliance with laws, regulations and legal registers by
country – this includes self-certification processes
• • Improved internal systems and activities to meet requirements of regulatory changes
• • Developed system to track political changes across the group. Engaged with current
and new governments on matters relating to mining agreements and tax matters
• • TSF management
• • Committed to implement the Global Industry Standard on Tailings Management
(GISTM) at all facilities by August 2025. TSFs at our Brazilian operations are currently
being converted to dry stacking to comply with federal requirements in Brazil
• • Engagement ahead of the approval of the Beposo TSF at Iduapriem
• • Project development updates – Ghana
• • Continued to engage with regulators and governments on progress being made on
and Colombia
and status of projects in respective countries
• • Continued to engage with ANLA (the licensing authority) in Colombia on the
environmental permit for the Quebradona project
• • Regulatory compliance – safety, local
• • Engaged regularly with governments and relevant regulators to provide updates
economic and community development
and taxation
on regulatory compliance
• • Dispute resolution – repatriation of funds
• • Maintained dialogue in the DRC on the repatriation of funds held through joint venture
(DRC) and tax refunds (Tanzania)
partner and operator, Barrick
• • Mitigation of political and regulatory risk
• • Engaged with governments and relevant regulators to ensure channels of
communication remain open
• • Maintained dialogue with Tanzanian authorities
• • Continued timeous payment of taxes, royalties and duties
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INTEGRATED STAKEHOLDER ENGAGEMENT
continued
Communities
Quality of engagement: Cordial
Suppliers
Quality of engagement: Strong
Includes: Those communities located in the vicinity of our operations, in which many of our employees reside, on whose goodwill we
depend and who are directly impacted by mining operations.
Includes: AngloGold Ashanti has many suppliers, ranging from established multi-national corporations, local strategic partnerships
(such as joint ventures) to smaller, more localised businesses – and labour contractors.
We are accountable to host communities to be a responsible corporate citizen. Communities can directly affect our social licence to
operate. In line with our values, we aim to leave a positive legacy for those communities.
Our suppliers provide those vital inputs – raw materials, products and services – required to conduct our business activities. We
endeavour to ensure suppliers are aligned with our business ethics and values, internal policies and standards, and codes of behaviour.
Engagement aims to manage expectations, uphold human rights and ensure community and asset security. Its focus is local socio-
economic development programmes, developed and run in partnership with local governments and host communities. These contribute
to economic growth, stimulate income-generating opportunities, create employment, and aim to nurture sustainable livelihoods beyond
the life of mine. Mutually beneficial community partnerships enhance shared value creation and support our social licence to operate.
Our community engagement strategy identifies potential areas of interest and concern within local communities. Engagement is
largely directed through various community forums that include representatives from AngloGold Ashanti, the community and local
authorities. Grievance mechanisms, together with accompanying resolution procedures, enable communities to lodge complaints
which can be resolved.
Key issues of engagement
Our response
• • Employment and procurement opportunities
• • Ensured Obuasi redevelopment is in line with commitments made to the Government
and local enterprise and economic
development programmes
• • Environmental and social impact of mining
activities on communities (noise, dust,
water issues)
and the community in Ghana (see Suppliers)
• • Continued to include local suppliers in our database. More than 80% of relevant
expenditure spent with local suppliers
• • As part of our localisation policies and procedures, and in line with country specific
legislation, we work to promote and ensure the employment of local people
• • Optimised participation by local companies and the transfer of skills in the Obuasi
redevelopment project
• • In line with our socio-economic contribution standard, we support alternative
livelihoods and local economies though community development projects in our
host communities
• • Ensured implementation of corporate social responsibility plan for Geita and continued
to roll out development initiatives working with communities and governments across
all our sites
• • Responded, followed up and resolved complaints received via the community
grievance mechanism
• • Social licence to operate
• • Engaged with key stakeholders regarding new mining projects and mine expansion
projects to ensure community support
• • Potential business interruptions
• • Maintained engagement with host communities on socio-economic contributions
accrued to communities across the group
• • Legacy issues (social and environmental),
• • Continuing to honour financial obligations to former employees in South Africa
post asset sale in South Africa
• • Studying options for legacy social projects in South Africa to benefit former employees
For more information on work undertaken to establish self-sustaining communities, see .
and their families
Key issues of engagement
Our response
• • Responsible sourcing
• • As a condition of working with AngloGold Ashanti, suppliers must comply at a
minimum with all relevant laws and industry regulations, and must be aligned with
our business code of ethics, values, and codes of behaviour, including responsible
sourcing
• • Our responsible sourcing programme enables us to identify risks relating to human
rights violations to help our suppliers make ethical decisions when purchasing goods
and services
• • Published a Modern Slavery Statement to comply with Australian regulations
and integrated supply chain modern slavery risks into our broader Human Rights
Framework to improve governance. See
• • Local content and procurement opportunities • • Designed programmes to promote local procurement and to build in-country mining
skills bases to empower local communities and reduce reliance on expat labour
through sustainable skills transfer and capacity building programmes
• • Community capacity building and localisation • • Geita contributed to capacity building of its host communities by partnering with
the National Economic Empowerment Council of Tanzania (NEEC) to encourage
participation by Tanzanians in the procurement of local goods and services in mining.
More than 300 local businesses have been trained and we see increased participation
of local vendors in bidding and tender processes
• • Supply chain risks
• • Proactively monitored global supply chains to ensure resilience and continuity of
supply, threatened by the COVID-19 pandemic. Measures put in place to address
the sustainability of our strategic supplier base. For example, timely payment to
and support for small, medium, and micro enterprises (SMMEs) to create business
opportunity and growth, and extended rosters for contractor expats that are subject to
longer quarantine periods due to border closures and restrictions
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INTEGRATED STAKEHOLDER ENGAGEMENT
continued
Industry partners and peers
Quality of engagement: Strong
Includes: National or local mining/industry bodies, the ICMM, World Gold Council (WGC), among others, providing a joint platform for
addressing industry-related developments and concerns, as well as initiatives for sharing lessons learnt and best practice.
Engagement aims to garner support and promote collaboration with other shared stakeholders – governments, regulators, employees,
unions and communities – on matters of mutual concern, to work together to reduce regulatory and political uncertainty, and to promote
long-term partnerships. These include joint efforts to find solutions to sector or industry challenges, and on any new developments to
promote the future of the industry. Engagement, which is led by the CEO and designated area leads, involves various platforms including
conferences, meetings and other industry forums.
We continued to engage with our peers through various forums, both through industry organisations in our operating jurisdictions and
at a global level through various bodies including the ICMM and the WGC, among others. These connections with our peers across the
local and global mining sectors help ensure we stay abreast of developing trends, allow us to provide input on major issues affecting
mining companies in general and AngloGold Ashanti in particular, allowing us to contribute to a collective voice for the sector. Much of the
discourse in these forums is centred on the broader environmental, social and governance topics, including the ongoing development of
best practices and how best to communicate the significant amount of good work being done by the industry in each area.
We continued implementation of the ICMM’s Performance Standards and the WGC’s Responsible Mining Principles.
Key issues of engagement
Our response
• • Climate change
• • In 2021, we developed a new Climate Change Strategy and presented our first
Climate Change Report (See ), outlining our approach to dealing with the risks
and opportunities that come with climate change and severe weather. We are fully
commited to the ICMM’s target of net zero Scope 1 and 2 GHG emissions by 2050; and
we are working on a medium-term target to cut GHG emissions by 2030
• • Evolution of ESG
• • We view our ESG performance as crucial to the broader financial and operational
success of our business, and our ability to generate value for all of our stakeholders.
We continue to work closely with our community and government stakeholders to
align our social and environmental investments with their own needs and aspirations
• • Making clear the benefits of mining
• • Contributed to the WGC’s report, The Social and Economic Contribution of Gold Mining
• • Regulatory uncertainty
• • Collaborated with industry bodies to manage and improve regulatory and
political certainty
• • TSF management
• • We have, along with our peers in the ICMM, committed to implement the Global
Industry Standard on Tailings Management (GISTM) at all facilities by August 2025
Engaging with media
Media engagement facilitates improved understanding of AngloGold Ashanti’s business among government stakeholders, the
investment community and the general public, promotes transparent and accurate reporting, and contributes to constructive
relationships with other stakeholders. It aids reputation management, improves transparency and credibility, supports our social
licence to operate, and can address speculation and misinformation in the public domain.
See the section Value by stakeholder further detail on value created in relation to each of these stakeholders.
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MANAGING OUR RISKS AND OPPORTUNITIES
AngloGold Ashanti is exposed to volatility and various risks in the
external operating environment. We recognise that risks and their
effective management are intrinsic to this business and, while this
remains the case, we will continue to identify and pursue value-
creating opportunities, including the leveraging of existing assets,
shareholdings, skills and experience. Risk management is a central
component of strategic, operational and project management,
and our risk management framework assists us in assessing and
managing the risks associated with our business and operational
activities. Our framework, which applies across the Company and to
all group-managed entities, consists of a formal risk management
policy and a set of risk management standards. We adhere to the
King IV Corporate Governance Risk Principles, ISO 31000 and to the
Committee of Sponsoring Organisations (COSO) Enterprise Risk
Management Framework.
Our risk governance is
reflected in our established
oversight structures
and the management of
assigned ownership and
accountabilities.
Roles of the board, Audit and Risk Committee
and management
The board provides oversight of AngloGold Ashanti’s risk
management framework, policies and processes and has ultimate
accountability for the development and implementation of the risk
management strategy and plan.
The Audit and Risk Committee is accountable for risk governance
and oversight of the risk management system, approving risk
policy, determining the appropriate levels of risk appetite and
tolerance and setting of annual limits for these.
Management is responsible and accountable for effective risk
management and practice. The CFO is accountable for the
enactment of policy and reports to the Audit and Risk Committee
and the board on this matter.
Assurance on the risk management system is provided by Group
Internal Audit, which provides periodic evaluation of controls and
compliance, as well as an objective view of delivery on the risk
management process.
Our risks and opportunities are identified at an operational and
regional level and assessed with input from senior management.
These are reviewed quarterly, or more frequently if required, based
on changes in our operating environment. Relevant risk owners
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 and assurance processes.
Risk appetite and risk tolerance
A certain degree of risk is inevitable in the conduct of our business. AngloGold Ashanti defines risk appetite as the level and type
of risk that the Group is willing to accept to achieve its business goals, while risk tolerance refers to the level of risk carried at a
particular time. Both risk appetite and risk tolerance are critical elements of the Group’s risk management process and in how risk
management is integrated into business planning and operational management.
The board approves the appropriate levels of Group risk tolerance after consideration of the levels of risk appetite and tolerance
determined by the Audit and Risk Committee.
Overview of our risk management framework elements, processes and accountabilities
Board of directors and CEO
Board has ultimate accountability for risk management; CEO is delegated with responsibility for design, implementation and monitoring
Corporate, exploration,
operations and projects
Manages risks which are
‘owned’ primarily by:
• • Executive risk owners *
• • Operational and project
risk owners
Risk management
system
Supports the board, Audit
and Risk Committee, CEO
and CFO
Audit and Risk
Committee
Oversees risk management
system and framework
Assurance
Provides independent
internal and external
assurance
Risk management framework
1
2
3
Policy
Standard
Guidelines
4
Appetite and
tolerance
statement
5
6
Assessment and
reporting matrix
Structure and
accountabilities
Context
Monitoring and
review
Identifying
Recording and
reporting
Risk management process
Assessing
Communicating
and consulting
Evaluating
Responding
Bottom up
Operational
level risks
Includes identification
and management of
emerging risk
Top down
Strategic risks
Includes identification
and management of
emerging risk
Tier 1: Management
Tier 2: Risk, compliance, legal, governance and steering committee functions
Tier 3: Independent assurance (internal and external)
COMBINED ASSURANCE FRAMEWORK
*
Chief Operating Officer and Chief Officers. Key management changes, a two-tier chief operating structure was consolidated into a single chief operating officer structure.
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MANAGING OUR RISKS AND OPPORTUNITIES continued
Opportunities
Acquisitions
The acquisition of Corvus, completed on 18 January 2022,
provides AngloGold Ashanti with the opportunity for district-wide
consolidation in Nevada. The combination of Corvus' assets,
the North Bullfrog, Mother Lode, and other exploration areas,
with our own neighbouring targets, including the Silicon and
Merlin deposits, provides the opportunity for the Beatty District
to become a potential Tier One asset with first gold production
expected in the next three years.
The transaction is expected to enable AngloGold Ashanti to
establish a medium- to longer-term, low-cost production base in a
premier gold mining jurisdiction.
Operational effectiveness and cost reduction
A core priority for the organisation is to reduce costs, such
that the business is profitable at lower prevailing gold prices.
Key to this objective is to embed the new Operating Model and
the organisational model that supports it. The new Operating
Model aims to reduce wasteful spending and activity, remove
unnecessary duplication of roles at multiple places in the
organisation, and empower the revenue generating assets with
the resources needed to execute on their business plans. In all,
this change to the business is expected to provide improved and
more consistent operating outcomes. In parallel with this process,
work is also underway to review planned operating and capital
expenditures while also conducting a full asset potential review of
our operating sites to ensure each is operating at its full potential.
Project development
Development of new projects has the potential to improve the cost
and life-of-mine profile of the Company’s portfolio, and improve
its long-term optionality. The redevelopment of Obuasi in Ghana
is well advanced and the operation is expected to ramp up to a
steady state of 4,000tpd of mining by the middle of 2022. The most
advanced projects in the pipeline currently are those in southern
Nevada’s Beatty district, including our own Silicon deposit and the
properties newly acquired in the Corvus acquisition; the Gramalote
joint operation with B2Gold in Colombia, currently undergoing
optimisation of its feasibility study to improve returns; and the
Quebradona copper and gold deposit, also in Colombia, which
has appealed a decision by the national environmental regulator
to ‘archive’ its environmental permit application, meaning that the
regulator will not approve or deny the application.
Climate change
There are substantial opportunities for the gold supply chain –
including gold mining – to implement decarbonisation initiatives
and move toward a future with net zero GHG emissions, as revealed
by the work undertaken by the World Gold Council to understand the
gold sector’s GHG emissions profiles and climate change impacts.
Climate change risk assessments undertaken in 2020 for all our
operating assets and the Quebradona project showed that most
physical change-related climate risks have already been identified
and included in operational-level risk registers.
We recognise that the effects of climate change may alter the
frequency and severity of weather and climate hazards. Using the
latest climate data and projections for a range of climate hazards,
operational teams were guided through a participatory approach
to consider how risks may be affected into the 2030s, focusing
on the worst-case scenario (equivalent to a 4.3°C increase in the
global average temperature by the end of the century, relative to
pre-industrial temperatures), which would require the most robust
adaptation measures.
When planning our response to individual physical climate
risks, we consider risk management actions that apply to many
areas of the business – including those related to information,
governance and policy – as well as any operational changes and
physical modifications.
We recognise that in some cases our understanding of the risks
and required adaptive(1) measures need to be developed further.
Informational actions were thus key in enabling us to successfully
build on our 2020 climate change risk assessments. These include
expanding our monitoring and early warning systems, together
with more detailed quantitative modelling and risk assessments.
To strengthen climate governance controls, awareness-raising
and capacity-building activities are essential in ensuring that our
employees have the knowledge and skills necessary for good
decision-making and to ensure that our functional policies and
standards are fit for purpose.
Operational actions include many simple, cost efficient and flexible
options – such as increased frequency of routine maintenance
activities – to ensure our assets, infrastructure and equipment
are performing optimally. Physical modifications covering both
‘hard’ engineering solutions and ‘softer’ nature-based solutions,
tend to be more complex and costly. Nature-based solutions are
potentially attractive as they frequently offer multiple benefits
beyond management of the initial risk such as environmental
improvements and contributions to social value.
(1) Adaptation: The process of adjustment to actual or expected climate and its effects. In human systems, adaptation seeks to moderate or avoid harm or exploit beneficial
opportunities. In some natural systems, human intervention may facilitate adjustment to expected climate and its effects. Mitigation (of climate change):
A human intervention to reduce the sources or enhance the sinks of greenhouse gases (GHGs). IPCC. (2014). Climate Change 2014: Synthesis Report.
Emerging risks
Supply chain disruptions and constraints
The global impact of the COVID-19 pandemic on logistics and
global supply chains across geographies and industries, including
the mining and metals sectors has been unprecedented and
continues to present challenges for our operations, despite the
resilience our operations have demonstrated over the past two
years. Supply disruptions, higher costs, extended lead times and
greater inflationary pressures will require continued management in
order to minimise the impact on operations.
We continue to see challenges in securing the key underground
expatriate skills required in Africa, especially those from
Western Australia.
The unintended consequences of the COVID-19 pandemic
have shifted commodity and labour markets, resulting in
market imbalances with shortages in certain sectors and a
surplus in others.
For detail on our strategy and its strategic objectives, see
Performance and delivery by strategic focus area.
For more on anticipated inflationary impacts, see Global
macro-economics and geopolitics.
Our top 10 residual Group risks
Our risks are assessed over the short, medium and long term. The heat map below shows the residual rating for each of our top 10 risks
over a three-year view (medium term). Residual risk is the Company’s exposure to a particular risk once mitigation measures have been
applied to the inherent risk.
Almost
certain
Likely
d
o
o
h
i
l
e
k
i
L
Possible
Unlikely
Very rare
1
4
2
3
6
8
5
10
9
7
Minor
Moderate
High
Major
Extreme
Consequences
Rank
(previous)
Risk
owners *
1
(1)
CLO, COO,
CFO
2
(2)
COO
3
(4)
CTO
4
(3)
COO, CFO
5
(5)
COO, CTO
6
(8)
CFO, COO,
CTO
7
(7)
CSCAO
8
(6)
CPO
9
(9)
CFO
10
(10)
CSCAO
Potential risk
Adverse regulatory changes
to mining rights and fiscal
requirements
Inability to convert Mineral
Resource and Ore Reserve
Failure to successfully deliver
and ramp up growth projects
Adverse future implications
for the industry and event
risks
Failure to meet our
operational and safety targets
Failure to move down
the industry cost curve
– all-in sustaining cost
competitiveness
Loss of or threats to social
licence to operate
Failure to attract and retain
critical skills and talent
Adverse gold and commodity
prices, and currency
movements
Inability to meet expectations
on responsible mining (ESG
performance)
42
43
Nature of risk:
Operational
External
Strategic
* See Executive Committee
AngloGold Ashanti Limited 2021AngloGold Ashanti Limited 2021
MANAGING OUR RISKS AND OPPORTUNITIES continued
Strategy
Mining is a long-term business, and so our strategy aims to create
sustained value over the life of our mining operations and beyond. This
involves careful allocation of key resource inputs – the natural, human,
intellectual, financial, manufactured, and social and relationship capitals
– which are essential to achieving this aim.
Our principal risks
Our risks are assessed over the short, medium and long term.
Not all of these factors contributing to our principal risks are
within the control of management as they are influenced by
external factors outside of management’s control. These
external factors include among other things COVID-19 and
its lingering impacts on employees, supply chain resilience,
resource nationalism, macroeconomic factors, the gold
price, and unforeseen events in our areas of operation.
These factors carry varying degrees of uncertainty and
at times require agile responses to manage the risks. For
more on these external factors, see Our external operating
environment in this report.
Supporting our
strategy for
sustainable cash
flow improvements
and returns
People, safety,
health and
sustainability
Improve
portfolio quality
1
Financial
flexibility
Maintain long-term
optionality
Optimise overhead,
costs and capital
expenditure
For detail on our strategy and strategic focus areas, see Our strategy –
an overview.
Adverse regulatory changes to mining
rights and fiscal requirements
Risk description
Experience shows that political, tax and economic laws
and policies in our operating jurisdictions can change
rapidly. We operate in countries that can from time-to-time
experience a degree of social and political instability as
well as economic uncertainty.
Mitigating action
• • Conduct regular, inclusive engagement and broader
collaboration with governments, communities and
NGOs
• • Continuously monitor legislative, regulatory and
political landscape
• • Make use of joint venture alliances with local
companies in line with host country’s regulatory
requirements to improve participation of host-country
industries
• • Ensure compliance with relevant country legislation
and regulation
• • Have in place a government relations framework to
guide engagement
2
3
4
Inability to convert
Mineral Resource and
Ore Reserve
Failure to successfully
deliver and ramp up
growth projects
Adverse future
implications for the
industry and event risks
Risk description
It is essential to replace depleted
Ore Reserve in order to maintain or
increase production in the long term.
If not, our operational performance,
financial condition and prospects will be
adversely affected.
Risk description
Failure to develop and operate projects
in line with expectations could negatively
impact business performance.
Risk description
Potentially catastrophic events include
among other events the COVID-19
pandemic, a TSF failure and our inability
to ensure liquidity of the business. Such
events could have significant financial
consequences and cause fundamental
changes in the way we operate.
Mitigating action
• • Continue ongoing monitoring of
the evolving pandemic and agile
COVID-19 response planning
• • Ensure adequate liquidity and
bond submission in anticipation of
prolonged impact of COVID-19
• • Undertake comprehensive TSF
governance and management
framework, standards and
guidelines developed to address
tailings-related risks
• • Convert TSFs to dry stacking in Brazil
Mitigating action
Short term
• • Improve Ore Reserve development
to create flexibility for mines to cope
with unexpected events that might
interrupt and hinder delivery on the
mine plan
• • Conduct greenfield and brownfield
exploration to replenish mineral
inventory
Mitigating action
• • Adopt robust approach to regular
stage-gate project reviews to
assess projects and allocate capital
in accordance with our capital
allocation framework
• • Ensure appropriate project skills,
systems, structures and governance
are in place
• • Create multi-disciplinary steering
• • Increase conversion of the Mineral
committee
Resource to Ore Reserve
• • Apply robust business planning,
portfolio optimisation and feasibility
studies to support Ore Reserve
conversion
Long term
• • Implement focused greenfield
exploration targeting new
discoveries
• • Continue focus on brownfield
exploration
• • Rank opportunities based on returns
and affordability
• • Ramp up safe operations at Obuasi
and learning from the case study
Feasibility study
• • Finalise Quebradona feasibility
study and address any gaps in the
Environmental Impact Assessment
required by regulators to secure
outstanding permits
• • Await completed feasibility study
of Gramalote from project operator
B2Gold
Strategic focus areas impacted
Strategic focus areas impacted
Strategic focus areas impacted
Strategic focus areas impacted
OVERSIGHT
OVERSIGHT
OVERSIGHT
• • Social, Ethics and Sustainability Committee
• • Investment Committee
• • Investment Committee
• • Audit and Risk Committee
OVERSIGHT
• • Social, Ethics and Sustainability
Committee
• • Audit and Risk Committee
45
a
i
l
a
r
t
s
u
A
,
a
n
a
c
p
o
r
T
i
44
AngloGold Ashanti Limited 2021AngloGold Ashanti Limited 2021
MANAGING OUR RISKS AND OPPORTUNITIES continued
5
6
7
8
9
10
Failure to meet our
operational and
safety targets
Failure to move down
the industry cost curve
– all-in sustaining cost
competitiveness
Loss of or threats to
social licence to operate
Failure to attract and
retain critical skills
and talent
Adverse gold and
commodity price, and
currency movements
Risk description
Unplanned stoppages and unforeseen
operational interruptions, and
operational accidents or injuries that
can impact production could adversely
impact business performance.
Risk description
Margins and free cash flow are at risk
when the gold price remains static or
declines, when production targets are
not met or when all-in sustaining costs
increase, potentially having an adverse
impact on our financial position.
Risk description
Failure to operate in a sustainable and
responsible manner to provide benefits
to communities could threaten our social
licence to operate and adversely impact
our financial position.
Risk description
Inability to retain and attract sufficiently
skilled and experienced employees may
harm our business and growth prospects.
Having the right people with the required
skills is vital to the efficient conduct of our
business and strategic delivery.
Risk description
Lower spot prices and strengthening
of currencies in host countries will
adversely impact our ability to generate
free cash flow.
Mitigating action
• • Ensure delivery of business plans
by focusing on Mineral Resource
modelling, integrated business
planning and execution
• • Improve Ore Reserve life and
planning certainty
• • Maintain operational excellence
programmes aimed at improving on
budget, productivity and efficiencies
• • Focus on safe production across
all operations to achieve zero harm
including the implementation of
refreshed safety strategy
• • Continue ongoing monitoring of
the evolving pandemic and agile
COVID-19 response planning
• • Roll-out of vaccination programmes
and ongoing education, awareness
and policy changes to mitigate
vaccine disinformation and hesitancy
Mitigating action
• • Drive operational excellence
programmes
Mitigating action
• • Target stakeholder mapping
and engagement
• • Introduce lower cost ounces to the
• • Monitor legislative, regulatory and
Ore Reserve
• • Optimise capital to generate
maximum returns
• • Complete asset sales enable
enhanced focus on higher-return
assets
• • Implement new Operating Model to
improve effectiveness, ensure better
operational outcomes and reduce
costs
• • Undertake full asset
potential reviews
political landscape in anticipation of
negative impact on business
• • Meet local content and localisation
requirements
• • Share economic benefits and
value created with host countries
and communities
• • Review sustainability performance
with general managers and increase
overall awareness among senior
management cohort across all
operations
• • Assess status of social licence to
operate at operations
• • Collaborate with health authorities
on national vaccination programme
implementation
Mitigating action
• • Implement key human resource
initiatives to ensure productive and
engaged workforce
• • Implement transformation model
to identify future critical skills
requirements
• • Integrate talent management
and succession planning, with an
increased coverage ratio for
critical skills
• • Increase training capacity for scarce
artisan skills
• • Implement short- and long-term
incentive schemes
• • Conduct employee engagement
surveys
• • Enable remote working functionality
• • Develop and implement
response plans
Mitigating action
• • Enhance cost competitiveness by
improving quality of the portfolio
• • Focus on cost, efficiencies, and
capital discipline
• • Maintain long-term optionality by
ensuring competitive project pipeline
• • Improve debt profile and interest
cost of capital
• • Apply conservative gold price and
currency planning assumptions
• • Conduct sensitivity analyses on gold
price, production, exchange rates
and Group risk adjustments
• • Implement new Operating Model to
improve effectiveness, ensure better
operational outcomes and reduce
costs
Inability to meet
investor expectations on
responsible mining
(ESG performance)
Risk description
Irresponsible mining practices and/or
perceptions that we are insufficiently
committed to ESG matters could
lead to investors divesting AngloGold
Ashanti’s securities, increased
reputational risk, and an adverse
impact on the price of our securities
and our social licence to operate.
Mitigating action
• • Conduct regular engagement and
collaboration with stakeholders
• • Undertake transparent reporting and
public disclosure
• • Review sustainability performance
with general managers and
increase overall awareness among
senior management cohort across
all operations
• • Ensure good corporate citizenship
and governance
• • Manage and limit environmental
impacts and progress achievement
of targets
• • Integrate climate considerations into
the business and undertake physical
climate risk assessments for all
operations
• • Implement Climate Change Strategy
• • Include stakeholders in COVID-19
response plans
• • Implement a human rights framework
• • Enhance diversity and inclusion
practices
Strategic focus areas impacted
Strategic focus areas impacted
Strategic focus areas impacted
Strategic focus areas impacted
Strategic focus areas impacted
Strategic focus areas impacted
OVERSIGHT
• • Investment Committee
• • Audit and Risk Committee
• • Social, Ethics and Sustainability
Committee
OVERSIGHT
• • Audit and Risk Committee
• • Investment Committee
OVERSIGHT
• • Social, Ethics and Sustainability
Committee
OVERSIGHT
OVERSIGHT
OVERSIGHT
• • Social, Ethics and Sustainability
• • Audit and Risk Committee
• • Investment Committee
Committee
• • Remuneration Committee
• • Investment Committee
• • Social, Ethics and Sustainability
Committee
46
47
AngloGold Ashanti Limited 2021AngloGold Ashanti Limited 2021 Alberto Calderon
Chief Executive Officer
CEO’S REVIEW
AND OUTLOOK
Fellow Shareholder
Thank you for your support through what has been a
challenging year for AngloGold Ashanti, our employees and
our many stakeholders.
It is a great honour to be appointed CEO of AngloGold Ashanti,
truly an iconic gold mining company endowed with high quality
assets, great people, and an excellent balance sheet. These are
the critical foundation stones upon which to build the long-term
success of any mining company.
As I look at our portfolio, however, I believe there is significant
value to unlock. The best place to begin realising that potential is
to ensure we’re doing the basics right – that means meeting our
commitments, sharpening our operational performance, executing
flawlessly on projects, extending the lives of our mines at a
reasonable price, reducing costs and improving cash conversion.
Building blocks
First, however, it was important for us to put in place a new, clear
Operating Model and the organisational structure to support it.
I spent significant time with the leadership team immediately
after my appointment in September 2021, designing and
communicating this new model. Its implementation began
in early 2022.
The model locates functional support roles at only two places in
the organisation – at the centre and the business units – rather
than in three or four places previously. It also empowers the line,
ensuring our revenue-producing assets are properly resourced
with the skills and decision-making authority to safely deliver on
their day-to-day plans. Specialist technical support is provided by
the centre, as are the necessary policies and standards to which
the business units must be held.
At its most basic level, the new Operating Model reduces waste
and duplication through the elimination of 215 support roles
at the mid- and senior management levels. But the benefit to
the organisation is more profound, in that it ensures the right
people are in the right place throughout the organisation and
removes confusion created by what was a convoluted, top-heavy
structure. Most importantly, though, this new Operating Model
provides for clear accountability across the business.
Leadership changes
I also moved to reinforce our leadership team with three key
external appointments, adding significant experience
in transformation, talent management, business improvement
and mine planning, to an already seasoned group of
existing executives.
Marcelo Godoy, was appointed Chief Technology Officer in
November 2021 and he previously had a senior leadership role at
Newmont. Lisa Ali joins on 1 April 2022 as Chief People Officer,
after a long career in senior leadership roles at BP and most
recently Newcrest. Terry Briggs, a 30-year veteran of the industry
and previously Vice President: Planning at Newmont, joins as
Chief Development Officer, also on 1 April 2022, with oversight of
planning, exploration and business development.
I believe there is significant potential value to unlock. The best place to
begin realising that potential is to ensure we’re doing the basics right – that
means meeting our commitments, sharpening our operational performance,
executing flawlessly on projects, extending the lives of our mines at a
reasonable price, reducing costs and improving cash conversion.
Realising potential
With the right people now in place, we’re ideally positioned to
focus on a step-change in performance through our Full Asset
Potential Review. This is a true and tested process used by many
of our larger peers in the mining sector, deploying subject matter
specialists from within the business to identify – through an
intensive three-month process – the gaps between the current and
best possible performance of each of our sites.
Site management teams, involved every step of the way, are
then accountable for delivery on the tasks that will close the
performance gap.
As our new Chief Technology Officer, Marcelo, who led a similar
process in his former role at Newmont, will oversee the Full Asset
Potential review, starting with Sunrise Dam in February of 2022,
followed by a further five sites before year end. The remaining
sites will follow in 2023.
This exercise will give us clear, empirical data against which to
measure the performance of each site, and upon which to base
our future capital allocation and portfolio decisions.
Tier One * assets
It is vital that we realise the full potential of our Tier One mines in
particular. Kibali continues to deliver excellent results, with strong
margins and a robust mineral inventory. At Obuasi, underground
mining resumed in October 2021 after operations had been
voluntarily suspended in May 2021. Since then, the restart plan
has tracked to schedule.
When Phase 3 construction is completed at the end of 2023, Obuasi
will be positioned to produce 400,000oz to 450,000oz a year at an
all-in sustaining cost (AISC) of $900/oz to $950/oz. With a life of
more than 20 years, and operating metrics expected to improve still
further in the second decade of its life as grades increase, this mine
is a true rarity in the global gold sector. Ongoing capital reinvestment
at Geita in Tanzania, where the Ore Reserve has more than doubled
in the past four years, and Tropicana in Australia, will see improving
production and cost profiles in coming years, ensuring these
operations are recognised as the Tier One mines that they are.
The project pipeline has also been enhanced with the purchase
of Corvus, which concluded post year-end in January 2022. The
acquisition delivers a unique opportunity to expand our asset base
in one of the world’s top ranking mining jurisdictions to create a
meaningful new production base, with first gold output anticipated
in three years.
At Quebradona, in Colombia, a feasibility study was completed
during the year and the Mining Operations Licence was approved
by Antioquia’s Mining Secretary. In November 2021, however, the
Colombian Environmental Agency (ANLA) officially “archived”
our environmental licence application, a decision that allows it to
neither approve nor deny a permit.
We appealed that outcome in early 2022 to gain clarity on the
specific information ANLA requires to make a final determination
on our application. We will prepare a new environmental licence
application accordingly and estimate this process is likely to add
about 24 months to the licensing timeline.
While this delay is disappointing, we are focused on the long term
and ultimately bringing to production one of the world’s most
exciting new, long-life copper-gold projects. In this endeavour, we
are encouraged by the continued support for its development.
In particular Colombia’s national and regional leadership have
expressed strong support for the project as an important
replacement for thermal coal energy sales, which account for
more than half of the country’s total exports. At the local level,
community support continues to grow.
With our balance sheet significantly strengthened in recent years,
we will continue to reinvest in our orebodies to increase Ore Reserve
conversion, extend mine life, and improve mining flexibility. Over the
past two years we’ve added 8.7Moz to our Ore Reserve, more than
replacing depletion, at first quartile grades when compared to our
*A Tier One gold asset is an asset with an Ore Reserve potential to deliver a minimum 10-year life, annual production of at least 500,000 ounces of gold and total cash
costs per ounce over the mine life that are in the lower half of the industry cost curve.
48
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AngloGold Ashanti Limited 2021AngloGold Ashanti Limited 2021 CEO’S REVIEW AND OUTLOOK
EXECUTIVE COMMITTEE
peers. We also declared a maiden Mineral Resource of 3.4Moz at
Silicon in Nevada. This success underscores the world-class quality
of our exploration team which continues to add ounces into our
inventory at a fraction of the acquisition cost that many of our peers
are forced to spend to replenish their pipelines.
Financial performance
It’s clear that 2021 was beset by a slew of challenges, some
exogenous and others related to sub-par operational execution, in
the first half of the year in particular.
While the new Operating Model is aimed at addressing those
shortcomings in a consistent way, it was encouraging to see our
operating parameters at our mines stabilise in the second half of
the year with a 12% production gain from our operating assets
(excluding Obuasi) over the first half, partly offsetting rising costs
related to COVID-19 and inflation impacts.
Aside from the continuing reinvestment, our costs also showed
the significant impact of the approximately $140m in capital
expenditure in 2021 that we invested in TSF compliance in Brazil.
We see 2021 as a peak year for this tailings expenditure, which will
continue to be material in 2022 – 2025 but will decline over time
through to the end of 2025.
Still, we generated free cash flow of $104m, leaving our balance
sheet in a solid position at year-end, with low gearing, strong
liquidity and no near-term debt maturities.
Safety
Maintaining our overall social licence to operate is fundamental.
Our primary objective is to operate the business free of injury
and harm. We continue to respond to our host government and
community needs, through direct investments and a healthy flow
of taxes and royalties.
We ended the year with our all injury frequency rate at 2.14
injuries per million hours worked, which remains well below the
ICMM member company average, and injury severity continues
to decline. But none of this can detract from the fact that in
2021 we lost two of our colleagues and we extend our heartfelt
condolences to their friends and families.
Carlos Machado Barbosa, 43 years old, lost his life in a tragic
accident at our Serra Grande mine in Brazil. Carlos, a blaster at
the mine, was fatally injured during a fall-of-ground incident in an
underground stope on 16 February 2021.
that more work needs to be done and we are implementing a revitalised
safety strategy, focused on the controls to eliminate major hazards.
Climate
We published our inaugural Climate Change Report during the
year, in line with the recommendations of the Task Force on
Climate-related Financial Disclosures. The report highlights our
proactive and transparent approach to mitigating current and
future climate risks and the measures we are taking to strengthen
the climate resilience of our business, our value chain partners,
host communities and the environment in which we operate.
We set our first decarbonisation targets in 2008 for a 30% reduction
in GHG emissions intensity by 2022 with 2007 as the baseline year.
We have exceeded that goal and the picture on absolute emissions
– down 69% from the base – is even better. This year we joined our
ICMM peers by committing to a target of net zero Scope 1 and 2
GHG emissions by 2050 and, in partnership with our value chain
partners, to set Scope 3 GHG reduction targets, if not by the end
of 2023, as soon as possible thereafter. We are also working on
new 2030 Scope 1 and 2 GHG emission targets.
Conclusion
I’d like to extend the Company’s sincere appreciation to our CFO
Christine Ramon, who has chosen to retire to spend more time
with her family after more than seven years with AngloGold
Ashanti. Our thanks, too, to Sicelo Ntuli, former COO Africa, who
left the Company to pursue other opportunities and to Graham
Ehm, former Executive Vice President (EVP) Group Planning and
Technical, who retired during the year.
I’d also like to thank AngloGold Ashanti’s Chair, Maria Ramos, for
her support and counsel over these first months in my new role as
I’ve moved to make significant changes to improve this Company’s
long-term performance.
I firmly believe we are on the right path to take AngloGold Ashanti
back to its place among the top gold mining companies, which is
where it belongs. We are focused on ensuring we deliver excellent,
consistent results and are directing the right resources to realise
our full potential.
I extend my gratitude to all our stakeholders and thank you all for
your support.
Daniel Nuertey-Kwao Quaynortey, 46 years old, an employee of Obuasi
contractor African Underground Mining Alliance, died in a geotechnical
event at the Obuasi mine on 18 May 2021. Their loss clearly indicates
Alberto Calderon
Chief Executive Officer
29 March 2022
Executive Management
Alberto Calderon (62)
Christine Ramon (54)
Stewart Bailey (48)
Italia Boninelli (65)
Chief Executive Officer
(CEO)
Chief Financial Officer
(CFO)
Chief Sustainability and Corporate
Affairs Officer (CSCAO)
Executive Consultant: Group
Human Resources (CPO)
PhD, MPhil, MA, Juris Doctor, BA
BCompt, BCompt (Hons), CA(SA),
Senior Executive Programme
(Harvard)
MA, PGDip (Labour Relations),
Executive Development
Programme
Ludwig Eybers (55)
Marcelo Godoy (50)
Lizelle Marwick (44)
Chief Operating Officer
(COO)
Chief Technology Officer
(CTO)
Chief Legal Officer
(CLO)
BSc (Mining Engineering),
Post graduate qualifications
PhD (Strategic Mine Planning), Masters
(Geostatistics)
BProc, LLB, LLM (Corporate Law)
Detailed CVs of the current Executive Committee are available on the corporate website, www.anglogoldashanti.com
50
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AngloGold Ashanti Limited 2021AngloGold Ashanti Limited 2021 OUR STRATEGY – AN OVERVIEW
The overall aim of our strategy is to generate sustainable, improved cash flows and returns over the longer term and, in so
doing, to create and preserve value for all our stakeholders.
The five key strategic focus areas on which our strategy is based enable us to deliver on our overall strategy. They guide
decision-making and are aimed at generating increased cash flows; extending mine lives; creating an organic pipeline of
economically viable orebodies; and enhancing our social licence to operate.
OUR STRATEGY
People, safety,
health and
sustainability
Supporting our
strategy for
sustainable cash
flow improvements
and returns
Improve
portfolio quality
Financial
flexibility
Maintain long-term
optionality
Optimise overhead,
costs and capital
expenditure
FIVE STRATEGIC ENABLERS
Streamlined,
margin-focused
portfolio
Disciplined capital
allocation and a
strong balance sheet
Engaged workforce;
prioritising employee
safety and health
Values-driven
culture
Responsible citizenship
with good governance
as the foundation
FIVE KEY STRATEGIC FOCUS AREAS
• • SUSTAINABILITY
The sustainability focus encompasses our environmental and
community (socio-economic) responsibilities.
People, safety, health and sustainability
• • Environment
Mining, by its nature, impacts the environment. Our mining
activities disturb land, consume water and energy, generate
air emissions, and produce waste that must be safely and
responsibly managed and disposed of. Air, water and energy
management, climate change, the protection of biodiversity
and land rehabilitation are key focus areas. Responsible
environmental stewardship aims to enhance efficiencies
in the use of natural resources, encourage responsible
consumption, and minimise, mitigate and remediate
environmental impacts. Environmental management is
actively integrated into operational functions and formalised
cross-functional collaboration structures are in place.
• • Communities
Our social conduct is critical to maintaining our social licence
to operate. Building resilient, self-sustaining communities is
in line with our ethics and values and with our aims to create
and share value.
Creating economic opportunity helps to build trust and
acceptance, leading to increased community collaboration
and economic growth. While community demands and the
complexity of social challenges faced may at times be felt
more acutely at mining operations in emerging economies
– where the challenges of poverty, unemployment and
inequality are most visible – the concept of shared value is
relevant across all operating jurisdictions.
This strategic focus area ensures that our business strategy
aligns with our values and corporate citizenship responsibilities,
which include being accountable for our actions and respecting
all stakeholders and the environment. In support of this, ESG
principles are integrated into all aspects of our business.
Performance in relation to this strategic pillar accounts for 25%
of Deferred Share Plan (DSP) remuneration awarded. See
Rewarding delivery.
In terms of each aspect of this strategic focus area:
• • PEOPLE
People are the foundation of our business – their skills, expertise,
talents, training and development are vital to the efficient conduct
of our business. A motivated, engaged workforce, within an
efficient organisational structure, is thus crucial for improving
productivity and innovation, efficiencies, and the successful
execution of the overall strategy.
Implementation of the new Operating Model began in late 2021.
This new model, along with the organisational model that supports
it, is key to the efficient execution of the overall strategy. Both the
model and the structure are aimed at improving effectiveness
of the business by eliminating duplication, streamlining work
processes, locating functional support roles at only two places in
the business – at business units and corporate – and ensuring
business units are adequately resourced to deliver on their plans.
The restructuring required ahead of implementation of the new
Operating Model and organisational structure unfortunately
required the reduction in a number of roles across the business,
and was undertaken with the clear understanding that we must
continue to attract and retain key talent, develop skills and manage
our talent effectively, in order for the business to thrive.
We will continue to actively invest in our people (human capital)
and have in place a policy to promote diversity and inclusivity.
• • SAFETY AND HEALTH
Allied to People is employee safety and health, which are
paramount to our duty of care towards our employees and our
responsibilities as a corporate citizen. Safety is our first value
and we believe that in return for understanding and following
our safety policies, standards and regulations, employees
should return home safely at the end of each shift. To this end,
a systematic and integrated safety strategy is embedded in our
organisational structures, systems and processes and is fully
supported by executive and senior management leadership teams.
Our health priorities include occupational health and, more
recently, management of the COVID-19 pandemic and its impacts.
This has led to better integration of health risk management
throughout the Company and the inclusion of occupational health
in the overarching business strategy.
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OUR STRATEGY – AN OVERVIEW
PERFORMANCE AND DELIVERY BY STRATEGIC FOCUS AREA
Focus on people, safety, health and sustainability
Financial flexibility
We must ensure our balance sheet is sufficiently flexible to meet
our core funding needs. This requires sufficient liquidity in the
form of cash and available credit facilities and staggered tenor
of debt maturities and leverage that sits well below our lending
covenants. These attributes allow us to weather periods of low
gold prices, to reward shareholders and to take advantage of
strategic opportunities throughout the cycle.
Optimise overhead, costs and
capital expenditure
All spending decisions must be scrutinised to ensure they are
optimally structured and necessary to fulfil our core business
objective. We do not control the price of our product, which can be
volatile and unpredictable. By optimising spending and investment,
we are able to maximise our margins throughout the gold-price
cycle, withstanding and even flourishing during periods of low gold
prices and continuing to invest in the sustainability of our business
without unnecessary reliance on dilutionary equity top-ups.
Improve portfolio quality
Our asset portfolio must be actively managed to improve the
overall mix of our production base as we strive for a competitive
valuation as a business. This is key to unlocking the full underlying
value of the portfolio. We continue to invest in upgrading the
overall quality and longevity of our portfolio, by developing new
lower-cost mining operations; extending the profitable lives
of our existing operations through brownfield exploration and
the discovery of a new Ore Reserve; mergers, acquisitions and
divestments; and improving the efficiency of our fleets and plants.
Maintain long-term optionality
Our Mineral Resource and Ore Reserve portfolio, our primary
natural capital input, is essential to the successful growth of our
business. Improving the quality of this natural capital, enhances
our ability to create value. To maintain long-term optionality, we
aim to continually replenish and increase the Mineral Resource
and Ore Reserve pipeline so as to sustain the business over
time. Key to achieving this are our exploration activities, both
greenfield and brownfield, and project development. With our
world-class team of geologists and other specialists we aim
to maintain and replenish a pipeline of economically viable
orebodies that will support delivery of sustained value-adding
growth. By discovering, developing and exploiting viable
orebodies sustainably and cost efficiently, AngloGold Ashanti
positions itself to create long-term value.
People, safety, health and sustainability
• • PEOPLE
People are vital to the long-term sustainability, growth and profitability of the Company. Our people management strategy aims to create an
environment conducive to achieving our business objectives by ensuring we have the right talent, in the right places to deliver the strategy.
Key metrics and related targets 2021
People
Metrics
Remuneration metrics
(5.5% of DSP performance award):
• • Strategic coverage of leadership roles
Targets, aims and performance
Related remuneration targets:
Performance
• • 15 to 18 designated (executive team)
• • 14 successors in place on average in 2021
successors in place
• • Key staff (skills) retention
• • 85% to 95% staff retention annually
• • Overall staff retention in 2021 was 95.58%
• • Gender diversity
• • 21% to 25% representation by women in
• • Average Group representation by women
Group workforce
Other related metrics monitored:
• • Number of people employed
• • Productivity per employee (oz/TEC *)
• • Training and development spend
* TEC: total employee costed
of 15.24% in 2021
Other:
• • Total training and development spend of
$7.11m
See Talent and leadership development,
Critical and scarce skills and Diversity and
inclusion below as well as the .
Organisation design and development
Operating model
A new Operating Model, designed and introduced to employees
towards the end of 2021, aims to improve efficiency and support
better operating outcomes by focusing only on work required to
deliver the strategy, clarifying the mandates of corporate functions,
properly resourcing our revenue-generating assets to deliver on
their plans, and removing duplicate structures and activities.
A new organisational structure aligned with this model supports
our people management strategy by: clearly defining the work
critical to achieve the strategy; aggregating functional support
roles in only two places in the organisation rather than three
or four previously; clarifying accountabilities; improving the
connections between all parts of the organisation; and ensuring
the right skills are in place.
The model dictates that corporate functions are accountable for
setting standards and minimum requirements in their areas, while
the new Business Units will have the resources and decision-
making flexibility to deliver the best operational outcomes, within
the requirements set out in the policies and standards created by
corporate. Specialist capability also exists at the corporate centre
to deliver support as required.
In line with the new model, the human resources team will focus
on enhancing the quality of our leadership cohort, meeting
requirements for improved talent and skills, embedding bespoke
human resources planning and labour strategies, and using data
analytics to improve people management decisions.
Learning and development
Learning and development programmes are critical for
enhancing employee performance, developing critical skills and
ensuring leaders provide an empowering work environment.
Development blends experience, exposure and education
interventions to build breadth and depth of critical experience
and leadership capabilities.
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PERFORMANCE AND DELIVERY BY STRATEGIC FOCUS AREA
Focus on people, safety, health and sustainability continued
Online/virtual learning
The COVID-19 pandemic accelerated the shift from traditional
classroom to online and virtual learning. The EdCast Learning
Platform went live in January 2022 and is a cost-effective, artificial
intelligence-based learning platform that is flexible in terms of
when and where it can be used. It provides learning tailored to
individual development needs and is aligned with our leadership
competency framework, providing technical training to support our
health of discipline objectives.
and will be cascaded to lower levels during 2022. We engaged with
tertiary institutions to understand how they may support our talent
development objectives. A managerial leadership development
strategy to support our Managerial Leadership Development
Competency Framework is being finalised. A neuro-leadership
development programme piloted at our Africa operations consists
of online learning and coaching. The programme was well received
and provided valuable insights.
• • Young leader development
This project is a collaborative effort supported by business units
and disciplines heads. Learning modules, using both external
and internal learning material where relevant, include future skills,
leadership development, project management, engineering skills
development as well as some key learning pathways such as
women in leadership, major hazards and critical controls.
The pilot initiative, with 400 participants across the business, runs
until March 2022 and will be followed by an assessment of its
effectiveness and impact before a broader rollout.
Talent and leadership development
A successful learning and development strategy enables better
professional development and is key to maintaining a healthy
talent pipeline. Development interventions are informed by
structured career engagements and have clear time frames linked
to defined development needs.
In 2021, we introduced development assessments for successors
to key roles to better understand their potential, strengths, current
development areas and aspirations. These assessments were
implemented for all near-term Executive Committee successors
The Emerging Young Leader Development Programme aims
to enhance our long-term leadership pipeline with inductees
assigned to high-impact projects in the business. Participants
receive mentoring and coaching from in-house experts and
since its inception in 2015, 40 young leaders – 54% women –
from various disciplines have graduated from the programme.
About two-thirds are from core disciplines. The graduates
return to roles within their business areas and receive
mentorship and opportunities to participate in international
programmes, for secondments and further studies. Thus far,
96% have been promoted or changed roles and 82% have been
retained in the Company.
The programme was redesigned during 2021 to sharpen its
focus on adding value to strategic projects and improving each
participant’s management capabilities.
• • AngloGold Ashanti Mentorship Programme
This programme aims to transfer knowledge and skills and
promote broader exposure within the business. Mentorship
training is available to mentors and mentees across all regions.
There are currently more than 70 mentorship relationships
across the business.
Talent management
Effective talent management is vital to business sustainability and
competitiveness. A comprehensive talent and succession planning
guideline was developed and socialised during 2021. The guideline
includes standards and toolkits to equip line management to make
effective talent and succession decisions.
We reintroduced the concept of ‘Levels’ during the year to aid
determination of successor potential and readiness levels. A
comprehensive assessment programme was developed for all
Executive Committee successors. Around 60% of the 33 identified
executive successors had been assessed by year end and most
had participated in discussions with their manager-once-removed
to facilitate development and readiness. There is a healthy
succession coverage of 6.2 successors per role for all stratum IV
and above roles, with a favourable age distribution.
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Critical and scarce skills
of a career in mining for many young graduates, have necessitated
initiatives to strengthen the pipeline for critical and scarce skills.
The 2021 talent and succession review incorporated a Critical Role
Identification Framework to consider the impact of roles on the
business and the risk of their being vacant for extended periods.
The review enabled line managers and Business Units to be more
specific and objective in identifying critical roles.
Our ability to assess the strength of internal and external skills
pipelines, to address gaps within these pipelines, and to focus on
recruitment initiatives to fill vacancies have been enhanced by:
• • Intensifying internal training and development to secure a critical
scarce skills pipeline
• • Establishing strategic partnerships with recruitment agencies
and educational institutions
• • Focusing graduate development and internship programmes on
specific skills
• • Applying remuneration benchmarks for critical/scarce skills
and subsequent use of appropriate remuneration, benefits, and
retention initiatives
• • Incorporating critical and scarce skills into competency
and assessment frameworks of Health of Discipline (HOD)
assessments
See Rewarding delivery for details on our remuneration
philosophy, policy and related implementation.
Employee relations
Our workforce is highly unionized, requiring a structured approach
to employee relations, based on engaging with employees and
their representative unions in a manner that improves relations
and establishes trust. Our interest-based approach to collective
bargaining and compliance with labour legislation, as well as fair
and transparent policies and procedures, underpins constructive
relations with our employees and unions. In Australia and the United
States, where no unions are present on our operations, we rely on
management practices that promote healthy employees relations.
None of our operations experienced any strike action during 2021.
Wage negotiations were concluded at Obuasi, Geita and Siguiri,
testament to an effective approach to collective bargaining.
Diversity and inclusion
Diversity and inclusion are business imperatives and we celebrate
differences in race, gender, culture, sexual orientation and ability.
Diversity and inclusion are embedded as a line management
accountability, measured through our key performance indicator
(KPI) management systems, and overseen by a clear governance
structure that breathes life into our values and commitment to
human rights and non-discrimination.
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Increased demand for key skills, the pandemic’s restrictions on
skills mobility, localisation imperatives and diminished desirability
During the year we conducted unconscious bias training,
established diversity and inclusion committees, developed
site-based diversity and inclusion policies, implemented non-
discriminatory and competitive remuneration scale and practices
for all employees, ensured gender-balanced intake for graduate
trainees and national service programmes, and reinforced our
value to create a diverse workforce through refresher training.
Localisation
We are committed to prioritising employment of local nationals
and to reducing the number of expatriate workers where we
operate. We do so responsibly, without impacting our operational
requirements and working closely with regulators. Site action
plans identify gaps and career paths for talented individuals.
Initiatives were undertaken to create roles for promising talent
and additional positions were created for graduates and learners.
To bring impetus to skills transfer to local nationals, special
recognition initiatives were implemented, together with coaching
and mentoring. To promote retention, dedicated site diversity
programmes and action plans were adopted. Accountability for
localisation rests with site leadership, who provide regular detailed
reports to the Executive Committee and the Remuneration and
Human Resources Committee.
Employee engagement
Global engagement surveys
Regular employee engagement surveys help to build high
performing employees and teams, united in achieving the best
outcomes. The recent employee engagement demonstrated that,
despite the impact of COVID-19 and remote work, engagement
remained at satisfactory levels.
Cultural assessment survey
People are at the centre of what we do, and we are driven by our
values and the diversity, talents and aspirations of the people
in the business. We are determined to create an inclusive and
collaborative environment based on trust, respect and dignity.
During October 2021, we conducted a culture assessment survey,
which received an 80% participation rate.
Key insights from the survey were:
• • Most employees have a grounded and well-rounded set of values
• • There is a satisfactory match between the current and
desired culture
• • Employees are committed to safety and health, continuous
improvement, accountability, and continuous learning
• • While employees have experienced significant transformation
and change, they are willing to continue changing and growing
• • There is a willingness to embrace a culture characterised
by greater employee engagement, recognition, leadership,
professional growth and open communication
• • Employees desire greater accountability
Culture often reflects the values, beliefs, and behaviours of
leadership and so executive leadership feedback sessions were
conducted as part of a culture transformation implementation plan.
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PERFORMANCE AND DELIVERY BY STRATEGIC FOCUS AREA
Focus on people, safety, health and sustainability continued
• • SAFETY AND HEALTH
The safety and health of our employees and host communities is paramount and, with the goal of achieving zero harm across our operations,
we continue to design and implement strategies to eliminate high potential incidents, fatalities and catastrophic events.
Safety compliance
All operations except for Obuasi have successfully migrated to ISO 45001:2018, which has replaced the OHSAS 18001:2007 series.
Obuasi is scheduled to migrate in 2022.
Key metrics and related targets 2021
Health and safety
Metrics
Remuneration metrics
(11% of DSP performance award)
• • All injury frequency rate (AIFR)
Related remuneration targets:
Performance:
Targets, aims and performance
• • Continually improve AIFR
performance
• • Major hazard management critical control
• • 95% to 99.5% critical control
percentage compliance
compliance
• • Cumulative number of site-specific critical
control registers established for major
health risks
• • Five to eight cumulative number of
site-specific critical control registers
established for major health risks
• • Group AIFR increased from 1.68 to 2.14 per
million hours worked (excluding the former
South African assets)
• • The level of critical control compliance
achieved in 2021 was 99.15%
• • At year end, there were an average of seven
critical control registers for site-specific major
health risks critical controls in place at each
of our mining operations, with 83 registers
completed. This compares to a target of six per
site, and a stretch target of eight
• • Compliance with operational occupational
exposure (noise and dust) monitoring
programmes
• • 60% to 90% compliance with
• • All operations continued to strengthen their
operational occupational exposure
(noise and dust) monitoring
programmes
occupational hygiene monitoring programmes
to ensure adequate and effective measurement
of workplace health hazards
Other related metrics monitored:
Overall safety and health aims are:
• • Number of fatalities
• • All occupational disease frequency rate
• • COVID-19 related workforce (employees
and contractors) metrics being monitored
internally are:
• • Cumulative number of confirmed
COVID-19 cases
• • Cumulative number of COVID-19
related deaths
• • Percentage of workforce partially
vaccinated
• • Percentage of workforce fully
vaccinated
• • Zero harm – no fatalities, no injuries
• • Reducing annual number of cases of
occupational disease recorded
• • A workforce that is fully vaccinated
against COVID-19. In 2021, before
implementation of vaccine mandates
at certain locations, campaigns
were run to encourage voluntary
vaccination by employees and
contractors
See below as well as the for further details
on our safety performance.
Revitalised safety strategy
In 2021, we introduced a three-year work plan to revitalise our
safety strategy. The plan centres on four areas: leadership and
people, work processes, technology and innovation, and risk
management. We developed a safety induction programme for all
leaders and now have clearer lines of accountability with further
work planned to align accountabilities of line management and
safety support staff, to the new Operating Model.
The introduction of a new Integrated Sustainability Information
Management System (iSIMS) means we can more effectively
integrate operational risk management and key performance
indicators at all levels of the organisation.
and our critical monitoring programme to ensure verification
and checks are well understood, allowing them to be effectively
implemented. Employees and contractors are educated on the
critical risks linked to their roles and can apply controls to manage
these risks.
Improving injury frequency rates
Over several years, our all injury frequency rate is improving and
now stands at a rate of 2.14 per million hours worked. This is
lower than the latest ICMM member company average for 2020 of
2.94 per million hours worked.
In the year, we tragically lost two of our colleagues and we extend
our heartfelt condolences to their friends and families.
Technology is aiding our drive to achieve our safety targets and
we have a Centre of Excellence portal to share safety updates and
lessons. We are simplifying our major hazard control standards
Carlos Machado Barbosa, 43 years old, lost his life in a tragic
accident at Serra Grande in Brazil. Carlos was a blaster at the
mine and was fatally injured during a fall-of-ground incident in an
underground stope on 16 February 2021. Daniel Nuertey-Kwao
Quaynortey, 46 years old, was an employee of contractor African
Underground Mining Alliance who died in a sill-pillar failure at the
Obuasi mine on Tuesday, 18 May 2021. His body was discovered
on Saturday, 29 May 2021 by mine rescue teams.
Management led
Our executives and line managers are responsible for integrating
safety into the business and we are intensifying employees’
focus on safety practices in all workplaces. Risk management
and critical control modelling resulted in continued efforts
to strengthen safety protocols and preventative measures.
Implementation of our safety strategy is overseen by our Social,
Ethics and Sustainability Committee.
Employee health and well-being
In working towards achieving our health metrics, we conduct
systematic assessments and mitigation programmes for
occupational and community health risks and impacts of our
mining operations on our communities. These are completed
through baseline occupational hygiene assessments, as well as
community health baselines and impact assessments.
In line with our health and well-being strategy, which includes
strengthening governance and assurance systems and processes
to avert long- and short-term risks and impacts, we adopted a
suite of updated health standards based on the systematically
identified major health risks or hazards. These standards are
important to the introduction of critical control principles to
manage health risks, where applicable. The new suite of Health
Standards has been approved by the Sustainability Policy
and Standards Committee and are in use across all sites. The
standards will be published once a company-wide plan to
standardise Company documents, is complete. For now, we
continue to refer to the Health & Safety Standards online.
The Health and Safety section of our Risk Management Guideline
and Risk Matrix was reviewed and updated to integrate health and
hygiene consequence definitions and classification metrics into the
initially safety-heavy approach to risk consequence classification.
In 2021, we recorded six occupational diseases cases – one at
Cerro Vanguardia, two at AGA Mineração, two at Geita, and one at
Obuasi. Of the six cases, five were related to noise-induced hearing
loss (NIHL) and one to temporary heat-related stress. This resulted
in an all occupational disease frequency rate (AODFR) of 0.08 cases
per million hours worked in 2021. This rate remains low and less
than one case per million hours worked, an improvement to the
long-term trend following the Company’s sale of its South African
portfolio, which had traditionally accounted for the greatest burden
of occupational medical diseases across the Group.
Health in the community
It is clear that as we work to end occupational disease and
associated health risks across our operations, we cannot view our
sites in isolation. Increasingly, we are working to improve available
healthcare. COVID-19 brought into sharp focus the symbiotic
relationship between community and employee health. As with
many diseases, the pandemic does not stop at the mine fence.
Over the past two years, measures to educate on, and stop the
spread of the pandemic have been embedded throughout our
operations. We have also worked in the communities to educate
and provide medical supplies, in line with government protocols.
Where we have been able, we have promoted the rollout of the
vaccine. By the end of 2021, we believe approximately 85% of the
workforce was fully vaccinated, excluding booster shots.
We are also aware of the pressures caused by the pandemic and
its impact on employee mental health and, with that, the potential
impact on safety. See and related Healthy Minds case study.
Public health initiatives
We continued to collaborate closely with our sustainability
colleagues at sites to support community-based health initiatives
and projects outside of our COVID-19 work. African operations
focused on chronic disease and cancer screening outreach and
malaria programmes.
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PERFORMANCE AND DELIVERY BY STRATEGIC FOCUS AREA
Focus on people, safety, health and sustainability continued
• • SUSTAINABILITY – ENVIRONMENT AND COMMUNITY
We work to achieve our sustainability goals by reducing our environmental impact, supporting community projects in business development,
education and infrastructure and by ensuring we plan well and work efficiently and cost effectively. We proactively manage risks to air, land,
biodiversity and water during the mining lifecycle.
Crucial to our ability to maintain our social licence to mine is engaging with, and listening to, the people in the communities in which we work and
all our other stakeholders, in both national and local government and throughout civil society. The table below presents our related key metrics,
targets and performance for the environment and communities.
Key metrics and related targets 2021
Environment
Metrics
Remuneration metrics
(6% of DSP performance award):
Related remuneration targets:
Performance:
Targets, aims and performance
• • Number of reportable environmental
• • No more than two reportable
• • Number of reportable environmental
incidents
environmental incidents annually
• • GHG emissions intensity – develop a
carbon budget for each operation
• • 80% to 100% of operations
incidents declined to five compared to
eight in 2020
• • Individual carbon budgets were developed
for all operations, based on their respective
life-of-mine plans
Other environmental metrics monitored:
• • Land rehabilitated and value of related
rehabilitation liabilities
• • Energy use and related intensity
• • GHG emissions and related intensity
• • Water withdrawl and reuse
• • Tailings deposited and waste
management
• • Water discharge and quality
• • Biodiversity
Communities
Remuneration metrics
(2.5% of DSP performance award):
Related environmental aims:
• • Have committed to a target of net zero
Scope 1 and 2 GHG emissions by 2050,
and in partnership with our value chain
partners, to set Scope 3 GHG emissions
reduction targets, if not by the end of
2023, as soon as possible thereafter
• • Comply with the Global Industry Standard
on Tailings Management (GISTM) by
August 2025
• • Minimise new water withdrawals and
maximise water reuse where possible and
prevent contamination of water resources
See below, Three-year statistics and
for more detail on our environmental
performance in 2021.
Related remuneration targets:
Performance:
• • No. of business disruptions resulting from
community unrest
• • Three significant community-related
business disruptions at most annually
Other community metrics monitored:
• • Community investment
Related aims:
• • Win trust of communities and
• • No. of community complaints
• • No. of human rights violations
stakeholders, equitably sharing and
supporting host communities
• • Work with communities and
governments to deliver initiatives that
will add sustainable economic value to
communities
• • There was one significant community
business disruption resulting from
community unrest at Siguiri in Guinea
• • No human rights violations were recorded
in 2021. We released our Human Rights
Report in 2021
• • Collaborate with governments on the
formalisation of artisinal and small-scale
mining (ASM)
See below and the for more detail on
our community-related and socio-economic
performance in 2021.
Management of the environment
Senior operational managers are responsible for ensuring
operations comply with their respective regulatory and permit
requirements, as well as our Environmental Management
Standards. Day-to-day management is enabled by site-level
Environment Management Systems which are externally certified
to the ISO 14001:2015 Standard.
Environmental compliance
All sites are certified except Obuasi whose certification was
deliberately allowed to lapse while operations were suspended.
Work for Obuasi’s re-certification in 2022 is currently underway.
Managing our climate change impacts
Our Climate Change Strategy, approved by the board in November
2021, seeks to embed management of physical risks, transition
climate risks and climate opportunities into our strategic and
operational planning processes. Our climate work is further
underpinned by a framework that aims to improve our climate
maturity along four pillars, aligned with the TCFD themes of
governance, strategy, risk management and climate metrics
and targets.
In December 2021, we published our inaugural Climate Change
Report, in line with TCFD recommendations. It highlights the ways
in which we are working to mitigate current and future climate
risks and the measures being taking to strengthen the climate
resilience of our business. See .
We also joined our peers in the ICMM by committing to a target of
net zero Scope 1 and 2 GHG emissions by 2050, and in partnership
with our value chain partners, to set Scope 3 GHG reduction
targets, if not by the end of 2023, as soon as possible thereafter.
Managing and conserving water
Our water management standard mandates comprehensive
understanding of water risks and the implementation of tailored
management and monitoring plans, supported by context-specific
objectives and targets.
Core objectives for operational water management are to
minimise new water withdrawals and maximise reuse of water
to the extent possible and to prevent contamination of water
resources through our activities. This is achieved by either
maintaining zero-water discharge on sites, or by treating and
releasing excess water from the process circuit, typically the case
for high rainfall sites.
During the year, the Iduapriem mine’s water treatment facility was
expanded to accommodate the release of greater water volumes
from the process water inventory during construction and ramp
up of a planned new tailings facility. Rehabilitation of Iduapriem’s
Block 1 waste rock facility, which required active treatment of low
pH seepage water, was reworked to encapsulate acid generate
rock more effectively, and to reduce rainfall infiltration.
A site-wide water optimisation project started at Tropicana is
aimed at reducing water abstraction from aquifers and using
water by preference, namely water from higher efficiency bores
requiring less energy consumption and providing higher water
yields, including those around the TSF. Variable-speed pumps
with reduced energy usage, operating off the mine’s internal
electricity supply grid, have been introduced, eliminating the need
for standalone diesel generators, which further aids in reducing
greenhouse gas emissions. The project increased the site’s
recycled water use, and cut diesel consumption for borefield
pumping by up to 35%.
Managing our tailings
AngloGold Ashanti has committed to implement, the Global
Industry Standard on Tailings Management (GISTM) at all TSFs by
August 2025.
While we have conducted external TSF reviews in Brazil, we have
not yet set up Independent Tailings Review Boards (ITRBs) for our
South American operations. We have established ITRBs for our
African and Australian operations, and have reviewed the TSFs at
Obuasi, Iduapriem, Geita, Tropicana and Sunrise Dam.
Integrated closure management
Our integrated closure management standard aims to ensure
that our activities minimise adverse impacts on people, the
environment and broader society. Our Closure Planning Standard
sets a consistent benchmark across all operations and ensures
a multi-disciplinary approach to identifying and managing
current and future closure risks and liabilities, while identifying
opportunities for value-adding initiatives and projects.
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Focus on people, safety, health and sustainability continued
We review and update our mine closure liability estimates quarterly
to comply with legislative changes and align with business and
closure plans, among others. At year-end, the consolidated group
environmental liability estimate totalled $688m, which includes an
obligation provision of $15m for Yatela (2020: $674m). We put in
place financial instruments to ensure that resources are available to
meet our closure obligations.
The social aspects of mine closure are critically important. There
is a growing emphasis on contributing to resilient and sustainable
communities during the lifecycle of the mining operation in order
to ensure a positive legacy after closure.
See Environmental stewardship, Ensuring integrated closure
and Resilient, self-sustaining communities in the .
Contributing to resilient, self-sustaining
communities
AngloGold Ashanti’s foundation in community relations is built on
mutual respect, transparency and trust. Our activities are guided by
our Social Performance management framework that includes the
Community Relations Policy and its supplementary management
standards and guidelines, which are found in AngloGold Ashanti’s
Code of Business Principles and Ethics, Our Code.
All sites have stakeholder engagement plans, based on detailed
annual stakeholder mapping processes. These plans are guided
by our Stakeholder Engagement Management Standard, which
is aligned with the International Finance Corporation’s (IFC)
Performance Standard 2. For more information, see .
Mitigating current and legacy impacts
We understand that our activities can have negative impacts on
communities that must be addressed fairly and openly. Grievances
are addressed using Group management principles taken from the
Performance Standards of the IFC and the United Nations Guiding
Principles on Business and Human Rights.
Our social impact management approach dictates that our
operations must identify and mitigate past, current and future
impacts. This considers external factors such as changing socio-
political and economic content and societal expectations and
community concerns. All AngloGold Ashanti sites are expected
to avoid or, where not possible, minimise their impacts on local
communities through project design and management plans.
Grievance mechanisms are critical to this process and we have in
place a series of mechanisms to address community complaints.
For more detail, see .
Socio-economic contributions
A key focus is our contribution to the development of local and
host communities. We continued to engage with stakeholders
on the implementation of our socio-economic development
plans, guided by the Socio-Economic Contribution Standard,
and invested $18.1m (excluding joint ventures) in community
investment projects in the areas of education, social
infrastructure, income generation initiatives and health in 2021
(2020: $20.6m, including South African operations and excluding
joint ventures).
Community investment by region (1)
5%
5%
33%
%
57%
(cid:31) Africa (cid:31) Americas (cid:31) Australia (cid:31) Corporate and other
(1) Excludes joint ventures
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Inclusive employment and procurement
AngloGold Ashanti makes every effort to procure goods and
services from local business and has held various briefing
sessions to guide potential suppliers on how to participate in the
supply chain. See
The employment of local people wherever possible is aligned with
our localisation strategy and is vital in ensuring tangible value is
shared with our host countries and communities.
Rights of indigenous people
Our policy is in line with international standards and treaties
in the area of Indigenous Peoples’ rights. We align with the
ICMM Position Statement on Indigenous Peoples and the IFC’s
Performance Standard 7 on Indigenous Peoples. Understanding
and respect for the values, traditions, and cultures of the local and
indigenous communities in which we operate is ingrained in our
values. See .
Respecting and upholding human rights
AngloGold Ashanti has a responsibility to respect human rights
and, where practically possible, to leverage its position and
influence to ensure that state actors protect human rights.
We have a human rights governance framework and a human
rights policy in place. We are committed to the United Nations
Guiding Principles and other international initiatives such as
the UN Global Compact and we are a member of the Voluntary
Principles on Security and Human Rights (VPSHR). See .
The starting point for AngloGold Ashanti’s human rights work is
the risk management process. Cutting across disciplines and the
entire project lifecycle, the human rights risk assessment process
forms part of the Group enterprise risk management system. The
human rights due diligence process forms a critical part of this
system. Training and communication help ensure that AngloGold
Ashanti employees, contractors and suppliers, communities and
governments understand what human rights are, what they mean
in the context of mining and what their responsibilities are in this
regard. Awareness-raising is critical, and every employee should
be able to act as an advocate and ambassador for human rights.
We recorded no human rights violations in 2021.
Artisanal and small-scale mining
Artisanal and small-scale mining (ASM) operations, where
individuals and a growing number of organised groups mine
informally and sometimes illegally, either on previously mined
areas or in some cases on sites belonging to AngloGold Ashanti,
are a material concern to the Company. We continue to advocate
for increased efforts in the formalisation of ASM, helping to
educate and provide safer work environments and alternative
avenues for the people around our mines to secure a living.
At Siguiri, in Guinea, illegal mining activities in our concessions
continue. We work with local and regional authorities, community
leaders and other stakeholders to assist in mitigating or reducing
this risk to communities and our operations. We also facilitated a
process for the initiation of an ASM formalisation project here in
2020, by introducing a third party ASM expert, who is co-ordinating
the project led by the Guinea Government, with our full support.
Unfortunately, as a result of COVID-19 and changes in Guinea’s
government, the project launch has been delayed. We are hopeful
that it will take place in 2022 and stand ready to support it.
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AngloGold Ashanti Limited 2021AngloGold Ashanti Limited 2021
PERFORMANCE AND DELIVERY BY STRATEGIC FOCUS AREA
Ensure financial flexibility
We must ensure our balance sheet
always remains able to meet our core
funding needs
AngloGold Ashanti is committed to maximising long-term
shareholder value and returns and so must ensure that our balance
sheet remains able to meet our core funding needs. We achieve this
by applying our clear and robust capital allocation framework.
The capital allocation framework prioritises investment in
our asset base, to support the health and sustainability of the
business. The sustaining free cash flow that comes as a result is
earmarked to:
• • Return cash to shareholders through our defined dividend
pay-out ratio focused on dividend returns based on free cash
flow before growth capital expenditure
• • Self-fund growth capital expenditure, with a disciplined focus on
risk-adjusted returns
• • Maintain a solid balance sheet, giving us strategic flexibility
through the cycle
We ensure sufficient flexibility at all times to reinvest continuously
in our asset base, supporting the long-term sustainability of our
business. Maintaining a strong balance sheet and reducing debt,
remains important in the current operating environment where the
COVID-19 pandemic presents added complexity and risk to the
mining industry in general, and more so for a producer of a single,
volatile commodity.
While our ability to generate free cash flow improves markedly
as the gold price increases, we nonetheless maintain our focus
on ensuring a strong balance sheet through all stages of the
commodity cycle.
Disciplined, shareholder-focused capital allocation
Transparent allocation hierarchy to maximise long-term shareholder value and returns
Operating and capital productivity
Net operating cash flow
Sustaining capital, prioritising Ore Reserve growth
Sustaining free cash flow
Strong balance sheet
(1.0x adjusted net debt to adjusted EBITDA ratio through the cycle)
Dividends
(20% of free cash flow pre-growth capital)
Growth capital
(Targeting a return in excess of our hurdle rate)
Excess cash flow
Further debt reduction
Additional dividends
should capacity exist
Growth
64
• • Reinvesting in our asset base to
support the long-term sustainability of
our business
• • Commitment to cash returns to
shareholders
• • Solid balance sheet underpins flexibility
and optionality through the cycle
• • Growth focused on risk-adjusted
returns
• • Allocation of excess cash tested
against shareholder returns
One measure of the success of our capital
allocation strategy is our ability to generate
sustainable free cash flow through the cycle,
and also our share price performance. Other
metrics monitored include: adjusted net debt
to adjusted EBITDA ratio (as defined in the
Revolving Credit Agreements); and cash and
cash equivalents.
Key metrics and related targets 2021
(35% of DSP performance award)
Measure
Target
Weighting
Threshold
measures
Target measures
Stretch measures
Actual
achievement
2021
achievement
%
Relative total shareholder
return (TSR)
10.00%
Median TSR of
Comparators
Halfway between median
and upper quartile
Upper quartile TSR
of Comparators
124.25%
15.00%
Absolute TSR
10.00%
$ COE (1)
$ COE + 2%
$ COE + 6%
124.25%
15.00%
Normalised cash return
on equity (nCROE)
(1) Cost of equity
15.00%
$ COE
$ COE + 9%
$ COE + 18%
25.90%
15.00%
Performance outcomes
• • The relative and absolute TSRs are based on a three-year
trailing average using the average share price achieved in
2018 as the base and comparing it to the average share price
achieved in 2021. The average share price in 2018 ($9.38/
share) grew by 124.25% over this period, inclusive of dividends
paid ($0.72/share) from January 2019 through to the end of
December 2021
• • Absolute TSR growth exceeded the stretch target set, while the
Relative TSR performance is compared to a comparator peer
group. The median TSR of the comparator peer group was
70.50% at 31 December 2021
• • A three-year trailing average nCROE of 25.9% was achieved on
the back of strong free cash flow generation over the same
period, notwithstanding an annualised increase in shareholders’
equity of 9%
• • Improved balance sheet flexibility was achieved with the
issuance of a $750m, seven-year bond at a record low coupon
for AngloGold Ashanti of 3.375% p.a., following the issue of a
$700m, ten-year bond, issued at a coupon of 3.75% p.a. in 2020.
Both bonds’ coupons were substantially below those of the debt
they replaced, helping to maintain balance sheet flexibility while
significantly reducing finance costs
• • The adjusted net debt to adjusted EBITDA ratio ended the year
at 0.42 times, some 58% below our target of 1 times, through
the cycle
• • Liquidity remains strong, providing good financial flexibility.
Our cash balance of $1.15bn excludes our $499m share of the
Kibali joint venture cash balance. The $1.4bn, multi-currency
revolving credit facility (RCF), was largely undrawn at year end,
while the $365m Corvus acquisition concluded in January 2022,
post year end, was settled from cash on hand
• • A total dividend for the year of 20 US cents was declared, based
on the dividend pay-out ratio under the policy of 20% of free
cash flow before growth capital expenditure
• • Credit ratings remained unchanged at investment grade from
Moody’s (Baa3) and Fitch (BBB-), with negative and stable
outlooks, respectively. The Standard & Poor’s rating remained one
notch below investment grade (BB+), with a positive outlook
For further detail on our performance in relation to this
strategic pillar, see the CFO’s report and outlook and the .
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AngloGold Ashanti Limited 2021AngloGold Ashanti Limited 2021
PERFORMANCE AND DELIVERY BY STRATEGIC FOCUS AREA
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
The group’s cost performance in 2021 reflects the continued reinvestment across our portfolio, notably at the Obuasi, Iduapriem, Geita,
and Tropicana operations. It also reflects significant investment in TSF compliance in Brazil.
Our overall focus remains on improving our operational performance, underpinned by the introduction of the new Operating Model,
continued cost discipline and the commencement of the Full Asset Potential Review programme in 2022.
Key metrics and related targets 2021
(27.5% of DSP performance award)
Measure
Target
Weighting
Threshold
measures
Target
measures
Stretch
measures
Actual
achievement
2021
achievement %
Production (shared with
Improve portfolio quality)
All-in sustaining costs
12.50%
15.00%
Other metrics monitored are:
• • Total cash costs
• • Sustaining capital expenditure
2.7Moz
2.8Moz
2.9Moz
2.472Moz
$1,230/oz
$1,205/oz
$1,180/oz
$1,355/oz
0.00%
0.00%
Capital expenditure by region
1%
17%
All-in sustaining costs
($/oz)
%
46%
36%
1,500
1,200
900
600
300
0
993
942
978
1,037
1,355
(cid:31) Africa (cid:31) Americas (cid:31) Australia (cid:31) Corporate and other
(cid:31) Continuing operations
2017
2018
2019
2020
2021
Total capital expenditure 2021:
(1) Includes joint ventures
$1.1bn (1)
Performance outcomes
• • Total cash costs increased 22% in 2021, or $173/oz, to $963/oz
mainly due to lower grades ($121/oz) and stockpile drawdowns
at certain operations ($23/oz). The second half of 2021 reflected
an 8% drop in cash costs to $925/oz, on the back of a 12%
increase in production from our operating assets (excluding
Obuasi), helped by higher underground grades (11%), when
compared to the first half of 2021
• • Inflationary pressures ($40/oz) were partially mitigated by weaker
local currencies, lower royalties and higher silver by-product
contribution. Our proactive supply chain strategies, including
holding three to six months inventories of consumables and
spares, delayed the inflationary impacts and enabled business
continuity during the year. We are closely monitoring the sea
freight market, given capacity constraints which are squeezing
lead times on deliveries, as well as freight and logistics costs. We
have taken a proactive posture on managing our supply chain
since the onset of the COVID-19 pandemic, and we will continue
to do that to ensure resilience and continuity of supply
• • Open pit grades were 26% lower year-on-year, with most
operations affected other than Siguiri and Sunrise Dam.
Recovered grades from underground were 3% higher
year-on-year, with grade improvements at Geita and Kibali
more than offsetting lower grades in Brazil, Sunrise Dam and
Cerro Vanguardia
• • The re-investment in our sites continues to progress with
the aim of extending mine life and improving flexibility, which
remain key priorities
• • Sustaining capital increased by $281m or 57% mainly due to the
TSF investment, as well as ongoing stripping at Tropicana and
Iduapriem
• • All-in sustaining costs were $1,355/oz, up 31% year-on-year,
driven by the higher sustaining capital expenditure and the rise
in total cash costs. AISC includes an estimated $34/oz COVID-19
impact, and an estimated $55/oz impact for Brazilian TSF
compliance
For further detail on our performance in relation to this
strategic pillar, see the CFO’s report and outlook and the .
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AngloGold Ashanti Limited 2021AngloGold Ashanti Limited 2021
PERFORMANCE AND DELIVERY BY STRATEGIC FOCUS AREA
Improve portfolio quality
AngloGold Ashanti continually works to improve
portfolio quality by maintaining operations,
delivering on mine plans and progressing projects.
Our aim is for a portfolio characterised by long-
life, high-grade, low-cost assets.
Key metrics and related targets 2021
Production and portfolio
Metrics
Remuneration metrics
(12.5% of DSP performance award)
• • Production
Targets, aims and performance
Related remuneration targets:
Performance:
• • Annual production of between 2.7Moz and
• • Produced 2.4Moz versus 2.8Moz in
2.9Moz
Other metrics monitored:
Overall portfolio aims are:
• • Recovered grade
• • Operating life
• • Improve confidence in our orebodies
• • Increase the quality of our Ore Reserve
• • Investment in Ore Reserve development
base
• • Metres developed
• • Waste stripping
• • Improve operating flexibility
2020 (excludes 241,000oz produced by
previously owned South African assets)
• • Added ~10% to Ore Reserve tonnes and
44% more ounces to the Proved category
• • Additions at first quartile Ore Reserve
grades versus peers
Contribution to group production by region
20%
23%
%
57%
Performance
While production declined year-on year, output improved
over the course of the year, increasing by 6% in the second
half of the year compared to the first half. This improvement
was based on the greater volumes processed and an
improvement in underground grades mined.
Operating challenges during the year included lower grades
and rising costs, related mostly to a shortage of skills and
higher inflation, due in large part to COVID-19. While there
are encouraging signs in the evolution of the pandemic, it
impacted production by around 47,000 ounces, and the all-
in sustaining cost by an estimated $34/oz in 2021.
Lower realised grades at certain operations came amidst
the ongoing re-investment programme currently underway
across the portfolio, and the temporary suspension
of underground mining operations at Obuasi. This re-
investment, evident in elevated capital expenditure levels,
is aimed at improving orebody flexibility and increasing
conversion of Mineral Resource to Ore Reserve. This
capital investment is funding increased waste stripping at
open pit mines, higher rates of underground development,
and the transition of our Brazilian TSFs to dry-stacked
structures in line with new legal requirements.
Asset review and new Operating Model
During the course of the past year, a new Operating Model was designed and its implementation begun. In terms of this new model,
we aim to improve organisational effectiveness, reduce waste and duplication, narrow our focus on costs and sharpen overall
operational performance and project execution. In addition, there is a sharp focus on improving cash conversion.
Our Full Asset Potential Review, which started at Sunrise Dam in February 2022 and will eventually take place at each site, is aimed
at assessing the full potential of each asset in our portfolio. This is a well understood process that has had significant success
across the industry, and which has not been used at our sites. We will bring in a team of specialists, led by Chief Technology Officer,
Marcelo Godoy, who will provide the necessary level of expertise to look at all key strategic levers for every operation. The process will
involve a detailed analysis of each asset, including mine design and key operating parameters, to understand the reasons for the gap
between current and best possible performance.
The full assessment of each site will take approximately three months and will identify key areas of performance improvement to be
implemented over the ensuing 18 to 24 months. This process – which will ultimately be ‘owned’ by each site leadership team – will
be tracked until the full value of initiatives has been realised.
Projects
At Obuasi, underground operations were suspended in May 2021
following a geotechnical event and fatality. A detailed review into
the incident and its causes was followed by a thorough external
review of future mining fronts covering the mine design, schedule
and ground management plan. Underground mining activities
remained suspended until mid-October 2021 when stoping
activities restarted.
Since then, the restart plan, and in particular tonnage delivered
to the mill, have tracked to schedule with the processing plant
achieving 2,000 tonnes per day in January. The safe ramp-up to
the full mining rate of 4,000 tonnes per day is expected by the end
of June 2022.
A comprehensive series of protocols has been introduced to
supplement existing operating procedures at Obuasi and they
are expected to add about $10 to $20 per tonne to the mine’s
operating costs, or about $50/oz. External consultants will
continue their review of future mining areas. Areas of assessment
completed include Sansu, Block 8 lower and the decline.
In terms of infrastructure, the work needed to support the ramp up
to 4,000tpd is now complete (Phase 2). Phase 3 – which relates
principally to extended capital expenditure to refurbish existing
infrastructure around the KMS shaft and runs to end 2023 – is
also proceeding according to schedule. This includes upgrading
the KMS shaft and materials handling system, a new ventilation
shaft, underground pump stations and refurbishment of the BSVS
sub-shaft.
For 2022, we forecast production of between 240,000oz and
260,000oz at an all-in sustaining cost of $1,250/oz to $1,350/oz.
Annualised production by year end 2022 is forecast at 320,000oz
to 350,000oz. We expect annual production to remain at around
that level in 2023 until Phase 3 is completed late that year, which
will allow a step-up to 5,000 tonnes per day.
In Colombia, our proposed Quebradona gold and copper project
will take longer to develop than previously anticipated following a
decision by the Colombian environment agency, ANLA, to archive
our environmental licence application. A thorough review and
analysis of the items and further information identified as part
of ANLA’s archiving decision is underway. The aim is to prepare,
submit and process a new environmental licence request for
Quebradona. This process will result in a delay in the project.
At Gramalote, the feasibility study work completed in early 2021
has illustrated the potential to improve the economics of the
project by revisiting and further optimising the original project
design included in the existing mining permit. The joint operation
partners believe that greater value could be created through
additional drilling of the Inferred portions of the Mineral Resource
area, both within and adjacent to the designed pit. A Mineral
Resource update is expected in early 2022. The final feasibility
study results for the project are currently expected by around
August 2022.
The reinvestment programmes underway at our bigger assets
– Geita, Tropicana and Iduapriem – have progressed well, and
remain on schedule.
For more detailed information on our portfolio and operational performance, see Regional reviews and the individual Operational Profiles.
(cid:31) Africa (cid:31) Americas (cid:31) Australia
2.5Moz (1)
Total production:
(1) Includes joint ventures
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AngloGold Ashanti Limited 2021AngloGold Ashanti Limited 2021 PERFORMANCE AND DELIVERY BY STRATEGIC FOCUS AREA
Maintain long-term optionality
We have a strong track record in replacing
our Ore Reserve and Mineral Resource and in
securing our long-term optionality.
Key metrics and related targets 2021
Mineral Resource and Ore Reserve
Metrics
Targets, aims and performance
Remuneration metrics
(12.5% of DSP performance award):
Related remuneration targets:
Performance
• • Ore Reserve additions*
• • Additions of between 1.4Moz and 4.3Moz
• • 2.7Moz added to the Ore Reserve pre-
depletion
• • Mineral Resource additions*
• • Additions of between 3.8Moz and
• • 2.1Moz added to the Mineral Resource
11.3Moz
pre-depletion
Other metrics monitored
• • Proportion of total Ore Reserve in each
category.
* Pre-depletion, asset sales, mergers and acquisitions
• • Added ~10% to Ore Reserve tonnes and
44% more ounces to the Proved category.
• • Additions at first quartile Ore Reserve
grades versus peers
• • Maiden Mineral Resource of 3.4Moz
declared for the Silicon project in Nevada.
Ore Reserve and Mineral Resource
Exploration is the foundation of our business and with our balance
sheet significantly stronger, and our portfolio significantly simpler,
we can safely turn to reinvesting in our ore bodies.
We are in the midst of a multi-year initiative, begun in early
2020, to increase investment in Ore Reserve development and
brownfield exploration, increase Ore Reserve conversion, extend
Ore Reserve life, improve mining flexibility and upgrade knowledge
of our orebodies. Two years into this initiative, strong progress
has been made with a cumulative addition of 8.7Moz to our Ore
Reserve, before depletion, at a cost of $68/oz. Our Ore Reserve
inventory has grown by 23% over this period, providing the Mineral
Resource base needed to leverage and further grow the Ore
Reserve.
In 2021, AngloGold Ashanti added 2.7Moz to its Ore Reserve
before depletion. At Geita, where extending mine life is a priority,
the Ore Reserve grew by 0.8Moz, bringing to 2.2Moz the total
Ore Reserve added there over the past two years. At Iduapriem,
the Ore Reserve increased by 0.9Moz, at Kibali by 0.5Moz and
at Sunrise Dam by 0.4Moz – all underpinned by an expansive
exploration programme.
There were steady Ore Reserve gains totalling 0.5Moz across the
rest of the portfolio.
Americas
On the greenfield front, we declared a maiden Mineral Resource
of 3.4Moz at Silicon in Nevada, United States. Following the
acquisition of Corvus in January 2022, a further Mineral Resource
will be added in 2022. Our aim is to use this acquisition as
a foothold in the region to establish a meaningful, low-cost,
long-life production base over the medium term. This regional
consolidation has the potential for significant synergies, including
economies of scale and integrated infrastructure relating to water
rights, adjacent concessions and processing facilities.
Our conceptual development plan for the district envisions:
• • North Bullfrog deposit (previously owned by Corvus) – to be
developed first with initial production expected within three years
• • Silicon – a 3.4Moz Mineral Resource with growth potential
• • Mother Lode deposit (previously owned by Corvus) – to be
developed last
There is potential to supplement this schedule with various other
prospective deposits now being explored across the tenement.
These deposits will be developed in a modular fashion, mined
initially as open pits with processing by means of heap leach and
gravity recovery where applicable.
Africa
The expansion of the underground operations at Geita continued
during the year with development of the newly established
Geita Hill underground mine progressing. Ore Reserve access
development is also being accelerated at Geita Hill underground
after the delayed granting of the required approvals.
Mining operations continue at Nyamulilima open pit and, in
the short term, production is planned to be lower compared to
previous periods, and costs higher, as we focus on fortifying high-
grade ore access at Geita in coming months.
Geita had another successful year in 2021 on the exploration
front – adding 800,000oz before depletion with strong additions at
Nyamulilima and Geita Hill East. This was the fourth consecutive
year in which the Ore Reserve grew net of depletion with the Ore
Reserve growing 112% from 1.25Moz in 2017 to 2.65Moz in 2021.
Geita is currently on track to achieve our target of consistently
having three to four years of Ore Reserve ahead at the right
balance between development and ore extraction.
Brownfield exploration at Iduapriem contributed about 900,000oz
to the mine’s Ore Reserve, pre-depletion.
Australia
At our Australia operations, the focus is on improving mining
flexibility at Sunrise Dam where our reinvestment programme
contributed ~700,000oz to the Mineral Resource and ~400,000oz
to the Ore Reserve, pre-depletion, in 2021.
For more detailed information on our long-term optionality, Mineral Resource and Ore Reserve and greenfield and brownfield
exploration, see Mineral Resource and Ore Reserve - summary, Exploration and planning for the future and .
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AngloGold Ashanti Limited 2021AngloGold Ashanti Limited 2021
REGIONAL PERFORMANCE
AFRICA
Guinea
Ghana
DRC
Tanzania
Operation
Project
57%
contribution to group production
$1.3bn (1)
invested in the Africa operations
over the past three years
(1) Includes joint ventures
Our operations in Africa
Africa is currently home to five of our operations, with one – Kibali
– managed by Barrick Gold Corporation. These operations, which
contributed 57% or 1.4Moz to total annual group production
in 2021, are in Ghana (Iduapriem and Obuasi), Guinea (Siguiri),
Tanzania (Geita) and the DRC (Kibali).
Operational Excellence initiatives aimed at unlocking value
and offsetting current cost and production challenges in the
short term remain key while the Full Asset Potential Review will
be instrumental in realising latent value from these assets in
the medium to long term. Growth and expansion projects are
underway at Siguiri, Iduapriem and Geita while Phase 3 of the
Obuasi Redevelopment Project continues.
At the end of 2021, our African operations accounted for 65% of the
group’s total Ore Reserve and 45% of its total Mineral Resource.
The Africa operations employed an average of 17,260 people, of
whom 10,781 were contractors, in 2021.
Successes
• • Strong safety performance – Iduapriem, Geita and Siguiri
remained fatality-free for the year
• • Mining started at the Nyamulilima open pit (Geita), which is
expected to produce more than one million ounces of gold over
the next six years
• • 21% year-on-year increase in Siguiri’s production, boosted by
a 17% improvement in recoveries and the start of mining from
higher-grade Block 2 ore body
• • Completion of Phase 2 of Obuasi’s Redevelopment Project
Challenges
• • Voluntary suspension of underground operations at Obuasi after
a fatal incident following a sill pillar failure, which impacted the
region’s production
• • Cost pressures at Iduapriem, due mainly to the investment
required for waste stripping needed to access blocks 7 and 8 and
the planned construction of a new TSF
• • Impact of the ongoing COVID-19 pandemic in absenteeism and
labour availability on some skill categories
• • Negative short-term effect on costs due to re-investment
programme and increased reliance on lower-grade stockpiles
during transitional period
• • Political uncertainty in Guinea following coup d’etat
Outlook for 2022
• • Safely maintain solid performance across the region
• • Obuasi is scheduled to ramp up to 4,000tpd by mid-year, with production of about 240,000oz to 260,000oz; progress Phase 3
• • Continued ramp up of underground and open pits at Geita
• • Growth capital expenditure of approximately $100m has been allocated to Obuasi for completion of Phase 3 of the redevelopment project
and approximately $60m for the construction of a new TSF at Iduapriem, as well as smaller amounts at Geita and Siguiri
• • Marginal improvements in production are expected at Iduapriem and Siguiri, and consistent performances at the remaining assets
• • Progress the Full Asset Potential Review, which began during the first quarter of 2022 at Siguiri
Performance summary
Production for the year was 1.4Moz (2020: 1.6Moz), achieved at a total cash cost of $904/oz (2020: $757/oz), as the region executes the re-
investment programme and various growth projects
Higher all-in sustaining cost of $1,161/oz (2020: $935/oz), because of lower production
Capital expenditure for the region was $506m (2020: $397m)
Safety performance deteriorated with one occupational fatality and an all injury frequency rate of 0.61 per million hours worked versus 0.55 in 2020
Community investment of $10.5m (2020: $12.9m)
All Africa operations certified in terms of International Cyanide Management Code, ISO 45001 (health and safety) and ISO 14001, with the exception
of Obuasi where work for its recertification in terms of the Cyanide Code and ISO 14001 is currently in progress
Solid performances at Geita, Siguiri and Kibali supported production and helped to offset
stalled production at Obuasi where underground operations were suspended following a
fatal incident in May 2021.
Attributable production
(000oz)
2,000
The increase in the regional all-in sustaining unit cost was a result of higher underground
mining costs at Geita, because of the step up in ore and waste volumes and higher
sustaining capital spend for waste stripping at Teberebie Cut 2 at Iduapriem. Also, higher
royalty costs were seen across the operations due to the increase in the gold price received.
Capital expenditure was largely spent on underground Ore Reserve development projects,
which continued at Geita, and pre-stripping at Iduapriem (Teberebie Cut 2) to provide
access to orebodies identified for future gold extraction. The balance of sustaining capital
investment was used for capitalised exploration and sustaining projects to improve asset
integrity and realise business improvements across the operations, to ensure safe and
sustainable growth and production.
At Geita, substantial progress was made opening up the Nyamulilima open pit, commencing
production and remaining on track to achieve full planned operation by the end of 2022.
Another notable achievement was the development of the Geita Hill underground mine for
which a maiden Ore Reserve has been declared and where steady state operations are also
expected by the end of 2022.
Kibali’s metallurgical plant performed well overall. The increased tonnages processed during
2021 were driven by the greater volumes of open-pit tonnes mined compared to 2020 and
yielded 812,152oz. Kibali’s Ore Reserve net of depletion is expected to increase for the third
successive year in 2022, maintaining its plus 10-year life as a Tier One asset.
The grind and recovery optimisation continued at Siguiri’s combination plant during the year,
and treatment of carbonaceous material started. The Block 2 project yielded its first ore
once the haul road was completed between the remote deposit and the plant at Block 1.
The implementation of an initial three-year re-investment plan to revise and extend
Iduapriem’s mine life is underway. This plan involves accelerated waste stripping from the
Block 7 and 8 pit, initially from Teberebie Cut 2. Longer term options are to strip waste from
Cuts 5 and 6. The re-investment plan includes increasing TSF capacity to match the revised
mine plan.
Obuasi update
Underground mining activities resumed in the fourth quarter of 2021, after they were
voluntary suspended in May 2021 immediately following the failure of a sill pillar. Towards
the end of the first quarter of 2022, the restart plan was tracking to schedule. Construction
of the major infrastructure to support the ramp up to 4,000tpd was complete by year end,
with the paste-fill plant and GCVS vent fans commissioned. The KRS hoisting system is
in service and the ramp up to 4,000tpd is targeted for the end of the first half of 2022.
Forecast production for 2022 is around 240,000oz to 260,000oz at an all-in sustaining
cost of $1,250/oz to $1,350/oz. Major infrastructure works are required to support
a further ramp up of production. This will include the upgrade of the KMS shaft and
KMV shaft as well as the development of a new ventilation shaft. We will continue the
Ore Reserve development to access Block 11. Phase 3 construction is expected to be
completed at the end of 2023 when the mining rate is planned to lift to 5,000tpd.
1,453
1,500
1,512
1,538
1,603
1,419
1,000
500
0
2017
2018
2019
2020
2021
AIFR
(per million hours worked)
0.8
0.7
0.6
0.5
0.4
0.3
0.2
0.1
0
0.62
0.61
0.55
0.49
0.39
2017
2018
2019
2020
2021
Productivity
(oz/TEC)
25
23.01
20
15
10
5
0
20.70
19.17
18.98
15.45
2017
2018
2019
2020
2021
Total cash and all-in sustaining costs
($/oz)
1,200
1,161
1,000
953
904
896
935
904
800
720
773
759
757
600
400
200
0
2017
Total cash costs
(1) World Gold Council Standard
2018
All-in sustaining costs (1)
2019
2020
2021
72
73
AngloGold Ashanti Limited 2021AngloGold Ashanti Limited 2021 REGIONAL PERFORMANCE
AMERICAS
United States
Colombia
Operation
Project
Brazil
Argentina
23%
contribution to group production
$810m
invested in the Americas
over the past three years
Our operations in the Americas
The Americas hosts three of our operations – one in Argentina and
two in Brazil – as well as two greenfield projects in Colombia and a
significant new greenfield development in Nevada in the United States.
These operations accounted for 25% of the group’s total Ore Reserve
and 47% of its total Mineral Resource at the end of 2021.
The Americas operations contributed 23% or 559,000oz to total
annual group production in 2021. These sites are in Argentina
(Cerro Vanguardia) and Brazil (Serra Grande and AGA Mineração
complex, which comprises the Cuiabá and Córrego do Sítio mines).
The portfolio also includes the Quebradona and Gramalote projects
in the Colombian department of Antioquia, which are undergoing
environmental permitting and feasibility study respectively, while
the La Colosa Project, in the department of Tolima, remains in force
majeure. In the United States, the greenfield concessions – which
include adjacent assets acquired with the Corvus acquisition – are
located in the Beatty District in southern Nevada.
The Americas operations employed an average of 9,972 people, of
whom 3,520 were contractors, in 2021.
Successes
• • Conversion of TSFs in Brazil to dry-stacking facilities, in line with
Brazilian legislation, continued:
• • Cuiabá and Córrego do Sítio commissioned two new filter
plants, with a third to be added in 2022
• • Serra Grande reinforced existing TSF and commissioned two
new filter plants
• • Cerro Vanguardia completed expansion of on-site
accommodation to create added flexibility during periods of lock
down among other things
• • Corvus acquisition finalised in January 2022, giving us a prime
position in the Beatty District in southern Nevada, the largest new
gold area in the United States
Challenges
• • Direct and indirect impacts of the ongoing COVID-19 pandemic
continued to be felt across the region, hampering production and
causing higher costs at all operations
• • Increased cost pressures due to lower production, inflation and
dry-stack conversion of our TSFs in Brazil – around $140m
was spent on TSF conversions in 2021, a peak year for TSF
investment. Costs are expected to be material from 2022 – 2025
but will decline over time
• • The combination of lower production and higher sustaining
capital contributed to abnormally high all-in sustaining unit costs
Outlook for 2022
• • Full Asset Potential Review is due to begin at AGA MineraÇão’s
Cuiabá complex during 2022
• • Continue inward investment programme to improve Ore Reserve
life and enhance operating flexibility at all operations
• • Evaluate Gramalote enhanced feasibility results due during the
third quarter, and decide on future course of action
• • Continue engagement with environmental regulator in
Colombia regarding Quebradona permit application and
take steps necessary to address any deficiencies in original
permit application
• • Progress completion of the TSF conversion programme across
all operations in Brazil
• • In Nevada our technical team has initiated its evaluation of
the Corvus Mineral Resource and, for 2022, multiple activities
are either underway or planned including:
• • Ore Reserve-conversion drilling at North Bullfrog and Silicon
• • Prefeasibility study underway at Silicon and a concept study
for the Merlin deposit is scheduled to begin
• • Permitting for North Bullfrog, which is due to start
before mid-year
74
Performance summary
Production for the year was 559,000oz (2020: 649,000oz), achieved at a total cash cost of $921/oz (2020: $721/oz)
Higher AISC of $1,587/oz (2020: $1,003/oz), because of lower production and high levels of sustaining capital expenditure, largely in relation to
the TSF conversion initiative
One occupational fatality in Brazil, at Serra Grade, in February 2021. The all injury frequency rate improved to 3.55 (2020: 3.68)
Community investment of $5.8m (2020: $6.2m)
All American operations certified in terms of International Cyanide Management Code, ISO 45000 (health and safety) and ISO 14001
Capital expenditure of $398m (2020: $217m)
The year in review was a challenging one for the Americas
operations, which faced significant headwinds from COVID-19.
There were, however, improvements in the second half of the year
with production up 14% versus the first half. Sites faced a range of
first- and second-order consequences of the pandemic, with Brazil
experiencing significant absenteeism during the first half of the year,
and Argentina’s production limited due to a range of travel and shift-
rotation restrictions in response to various waves of the outbreak.
In Brazil, at both AGA Mineração and Serra Grande, plant throughput
was scaled back during the second half to ensure tailings deposition
remained within legally mandated limits while the conversion
programme for the conversion of TSFs to dry-stacking facilities, was
fast tracked. At AGA Mineração, operating challenges at Córrego do
Sítio were partly offset by improvement at the larger Cuiabá mine,
where tonnes of ore treated increased year-on-year.
At Cerro Vanguardia, where silver revenues are offset against
gold cash costs, the negative impact of reduced capacity due to
COVID-19 restrictions was partly offset by continued weakness in
the Argentinean peso against the US dollar and higher volumes of
silver produced and sold.
In Colombia, the Quebradona Project remains an attractive long-life,
high-grade, low-cost project which will add copper production to
our portfolio. At Gramalote, a joint operation with B2Gold, the final
feasibility study for the project is expected to be delivered during
the course of 2022. Colombia’s environmental agency (ANLA)
took the decision to archive our environmental licence application
relating to the Quebradona project. AngloGold Ashanti has filed an
appeal seeking to secure further details on the specific additional
information the agency would require in order to be able to prepare a
licence submission that would meet the agency’s requirements. This
prcess will result in a delay of the project.
Nevada strategy
AngloGold Ashanti completed its acquisition of Corvus on
18 January 2022, consolidating much of the largest new gold district
in Nevada. This provides AngloGold Ashanti the opportunity to
establish, in the medium and longer term, a meaningful, low-cost,
long-life production base in a premier mining jurisdiction.
As the Company has previously indicated, the consolidation of
the Beatty District has the potential for significant synergies from
economies of scale and integrated infrastructure, including water
rights, adjacent concessions and processing facilities. The combined
asset base also allows for unified engagement with federal, state
and local stakeholders to advance and achieve shared sustainability
goals and other district benefits, such as opportunities to design
projects incorporating renewable energy, as well as develop
conservation and other local projects in conjunction with the Beatty
community. Following the completion of the Corvus transaction,
water rights that will form an important part of the district’s
development, have transferred to AngloGold Ashanti.
The Company’s conceptual development plan for the district
envisions the North Bullfrog deposit – previously owned by Corvus
– being developed first, with initial production expected in the next
three years. This is expected to be followed by AngloGold Ashanti’s
Silicon deposit – which has declared a maiden 3.4Moz Mineral
Resource – and then potentially the Merlin target near Silicon. The
timing for mining activities at the Mother Lode deposit is expected to
start only in the long term after the Company completes additional
study work. This initial development schedule is expected to be
supplemented by various other prospective deposits being explored
across the tenement. It is expected that deposits will be developed in
a modular fashion, mined initially as open pits and processed using
heap leach and gravity recovery where applicable. This pathway
provides the opportunity for project capital expenditure intensity to
develop in a staged fashion. The district is expected to yield more
than 300,000oz annually over more than a decade at a Tier One
cost structure. Sulphide processing and underground mining will be
evaluated in the longer term. AngloGold Ashanti’s technical team
has initiated the process of evaluating the Corvus’ Mineral Resource.
For 2022, multiple activities are planned to take place in the district,
with requisite drilling underway at North Bullfrog and Silicon, with
an aim to convert Mineral Resource to Ore Reserve. We also plan to
begin a pre-feasibility study at Silicon and initiate a concept study
for the Merlin deposit. The permitting process for North Bullfrog
is expected to start in the first half of 2022. Importantly, given the
various deposits across the tenement, our approach to mapping
these deposits is expected to take place over a number of years in a
staged and de-risked manner.
Attributable production
(000oz)
1,000
800
600
400
200
0
840
776
710
649
559
2017
2018
2019
2020
2021
AIFR
(per million hours worked)
Productivity
(oz/TEC)
13.34
12.86
5
4
3
2
1
0
3.97
3.84
3.68
3.55
3.29
2017
2018
2019
2020
2021
15
12
9
6
3
0
75
Total cash and all-in
sustaining costs ($/oz)
2,000
11.39
9.70
1,500
1,587
7.74
1,000
943
855
638
624
1,032
1,003
921
736
721
500
0
2017
2018
2019
2020
2021
2017
2018
2019
2020
2021
Total cash costs
(1) World Gold Council Standard
All-in sustaining costs (1)
AngloGold Ashanti Limited 2021AngloGold Ashanti Limited 2021 REGIONAL PERFORMANCE
AUSTRALIA
Western
Australia
Kalgoorlie
Perth
Operation
Project
20%
contribution to group production
$477m
invested in the Australia
operations over the past
three years
Performance summary
Production for the year was 494,000oz (2020: 554,000oz), achieved at a total cash cost of $1,196/oz (2020: $968/oz)
Higher all-in sustaining cost of $1,500/oz (2020: $1,225/oz)
Capital expenditure of $185m (2020: $143m)
Safety performance regressed, from an AIFR of 3.74 per million hours worked in 2020, to 6.59. The increase in the number of incidents in
2021 is attributed to a range of COVID-related factors, including high employee turnover (see comment on labour market above) coupled
with an increase in the proportion of inexperienced workers
Community investment of $1.01m (2020: $0.81m)
All operations certified in terms of the Cyanide Code, ISO 45000 (health and safety) and ISO 14001
While production declined year-on-year, the Australia assets recorded a stronger second
half of the year with output improving by 23%, when compared to the first half of the year.
Attributable production
(000oz)
Our operations in Australia
The two AngloGold Ashanti operations in Australia are Sunrise Dam
and Tropicana, both of which are in the north-eastern goldfields
in the state of Western Australia. Sunrise Dam is wholly owned,
while we have a 70% holding in, and manage, Tropicana, with Regis
Resources Ltd, our partner, holding the balance. Regis Resources
acquired the stake in Tropicana from IGO Ltd on 31 March 2021.
Sunrise Dam includes the Butcher Well project (70%).
Together, these operations produced 494,000oz in 2021 (2020:
554,000oz), contributing about 20% to group production.
At the end of 2021, the Australian operations accounted for
about 10% of the group’s total Ore Reserve and 8% of its total
Mineral Resource.
The Australian operations employed an average of 1,332 people,
of whom 1,044 were contractors, in 2021.
Successes
• • Improved mine flexibility remained a strong focus at Sunrise Dam
where the investment in exploration added 0.7Moz to its Mineral
Resource and 0.4Moz to Ore Reserve in 2021 (pre-depletion)
• • Sunrise Dam’s Golden Delicious open pit, where mining is carried
out by indigenous mining contractor Carey Mining, achieved all
planned metrics in 2021
• • Waste stripping continued at Tropicana’s Havana pit while
ore and waste were mined from the Boston Shaker pit as well
as Havana
• • The Boston Shaker underground operation successfully ramped
up and is performing in line with the feasibility study
• • All staff and contractors are fully vaccinated as per Western
Australia’s state-wide mandate for all fly-in, fly-out mineworkers
and visitors to mine and exploration sites
Challenges
• • Productivity at both mines impacted by acute skilled labour
shortages across the Australian mining sector. Western
Australia’s strict COVID-related border closures prevented the
interstate movement of fly-in, fly-out employees and constrained
recruitment from outside the state. The labour shortage was
compounded by demand from new projects and project
expansions in the state, driven by strong commodity prices,
especially iron ore
• • Production at Tropicana was also hampered by a pit-wall failure
in the Boston Shaker open pit during the third quarter of 2021,
delaying production by about 30,000oz
• • Tonnes mined at Sunrise Dam’s underground mine were lower
than expected, largely due to labour shortages
• • A stronger Australian dollar impacted costs
Outlook for 2022
• • The lower stripping rates in 2021 will impact production in the next one to two years. To mitigate this, and ensure production potential in
future years (particularly 2023 and 2024), a primary focus in 2022 will be the optimal sequencing of the pits and ensuring waste stripping
is carried out on schedule
• • Work will continue to build the pipeline of skilled personnel for our sites, including the Company’s successful graduate programme and
traineeships
• • Our Full Asset Potential review began at Sunrise Dam in February 2022. The aim of the review is to complete a detailed analysis of each
asset, including mine design and key operating parameters, and to understand the reasons for the gap between current and best possible
performance
At Sunrise Dam the new, higher-grade and shallower Frankie orebody was accessed at
year-end, and 1.09Mt of ore was mined from the new, relatively short life Golden Delicious
open pit, displacing lower grade stockpile material from mill feed in the second half of the
year. Recovery rates also improved in the second six months of 2021 versus the first half.
Mining at Golden Delicious is progressing well, with this material stockpiled and blended
with underground ore to optimise throughput and production.
At Tropicana, open pit material movement was lower than planned in 2021, due primarily
to the severe shortage of skilled operators and maintenance personnel. The mine
plan was adjusted to mitigate this shortfall and reduce the impact on gold production.
Progress in the lower priority (bulk waste) work areas suffered as a consequence,
resulting in less waste stripping of cutbacks being carried out.
625
614
554
494
800
600
559
400
200
0
2017
2018
2019
2020
2021
AIFR
(per million hours worked)
10
8.53
9.14
8
6
4
2
0
7.33
6.59
3.74
2017
2018
2019
2020
2021
49.55
44.85
37.50
30.93
Productivity
(oz/TEC)
47.87
50
40
30
20
10
0
2017
2018
2019
2020
2021
Total cash cost and all-in sustaining costs
($/oz)
1,500
1,500
1,200
1,062
1,038
990
968
1,225
1,196
743
762
730
900
600
300
0
2017
2018
2019
2020
2021
Total cash costs
(1) World Gold Council Standard
All-in sustaining costs (1)
a
i
l
,
a
r
t
s
u
A
m
a
D
e
s
i
r
n
u
S
76
77
AngloGold Ashanti Limited 2021AngloGold Ashanti Limited 2021
MINERAL RESOURCE AND ORE RESERVE – SUMMARY
Responsible management of our Mineral Resource and Ore Reserve, our exploration programme and
related planning, is vital in optimising the operating lives of our portfolio.
AngloGold Ashanti strives to actively create value by growing
its major assets – the Mineral Resource and Ore Reserve.
This drive is based on active, well-defined brownfield and
greenfield exploration programmes, innovation in both
geological modelling and mine planning, and continual
optimisation of the asset portfolio. Ensuring a viable Mineral
Resource and Ore Reserve pipeline enables delivery of
sustained value-adding growth in the long term.
Responsible management of our Mineral Resource and Ore
Reserve, our exploration programme and related planning, is
vital in optimising the operating lives of our portfolio. In so doing,
AngloGold Ashanti ensures that it is able to deliver on its strategy
and the related strategic objectives in particular, namely, to maintain
long-term optionality and improve the quality of our portfolio. See
also Exploration and planning for the future in this report.
AngloGold Ashanti has therefore once again resolved not to
provide the detailed reporting as defined in Table 1 of the SAMREC
Code, apart from the maiden Mineral Resource declaration for
Silicon. The Company will continue, however, to provide the
high level of detail it has in previous years to comply with the
transparency requirements of the SAMREC Code.
Price assumptions
The SAMREC Code requires the use 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.
Reporting compliance
AngloGold Ashanti’s Mineral Resource and Ore Reserve are
reported as at 31 December 2021, 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) and Section 12.13 of
the JSE Listings Requirements (as updated from time to time).
In the case of Sunrise Dam, the 2021 Ore Reserve estimate
reflects that the mine is two years into a three-year “growth
through exploration” phase that aims to unlock the value of the
asset, with Ore Reserve growth the initial step in a move towards
realising the full asset potential. The Ore Reserve has been
estimated using a mine-constrained break-even cut-off determined
at a $1,200/oz gold price under budget cost conditions across the
six-year Ore Reserve life.
We achieve this by ensuring the principles of integrity,
transparency and materiality are central to the compilation of the
and by using reporting criteria and definitions as detailed
in the SAMREC Code. In complying with the SAMREC Code
the 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.
This has meant that significant marginal material was included in
the plan in order to keep the plant operating at full capacity.
The Ore Reserve has been evaluated economically and shown to
be cash flow positive at a $1,500/oz gold price. It is AngloGold
Ashanti’s opinion that there is sufficient margin between this price
and the current spot price of gold for this to define an Ore Reserve.
Gold price
The following local prices of gold were used as a basis for estimation in the December 2021 declaration, unless otherwise stated:
2021 Ore Reserve
2020 Ore Reserve
2021 Mineral Resource
2020 Mineral Resource
Gold price
$/oz
Australia
AUD/oz
1,200
1,200
1,500
1,500
1,633
1,604
2,072
2,170
Local prices of gold
Brazil
BRL/oz
6,182
5,510
7,940
7,682
Argentina
ARS/oz
134,452
119,631
173,065
142,507
Colombia
COP/oz
3,849,000
4,096,877
5,336,250
5,094,827
Copper price
The following copper price was used as a basis for estimation in the December 2021 declaration:
2021 Ore Reserve
2020 Ore Reserve
2021 Mineral Resource
2020 Mineral Resource
Copper price
$/lb
2.90
2.65
3.50
3.30
COP/lb
9,302
9,047
12,451
11,209
Mineral Resource
Gold
The AngloGold Ashanti Mineral Resource reduced from 124.5Moz in December 2020 to 123.2Moz in December 2021. This annual net
decrease of 1.3Moz includes depletion of 2.9Moz, the relinquishment of the lease for Obuasi’s Anyankyirem open pit of 0.4Moz, changes
in economic assumptions of 2.3Moz and other factors of 1.4Moz (including the write-off of 0.6Moz for AGA Mineração Nova Lima Sul).
This decrease is partially offset by additions due to exploration and modelling changes of 5.7Moz. The Mineral Resource was estimated
using a gold price of $1,500/oz, unless otherwise stated (2020: $1,500/oz).
Mineral Resource – Gold
Mineral Resource as at 31 December 2020
Disposal
Depletions
Additions
Silicon
Geita
Sunrise Dam
Kibali
Other
Reductions
Obuasi
Iduapriem
At Obuasi, the Anyankyirem open pit mining lease was relinquished.
Sub-total
Sub-total
Due to:
A maiden Mineral Resource was declared after the completion of a positive
conceptual study based on the greenfield exploration success.
Increase due to ongoing grade control and successful exploration activities.
Following a review of mining cost for 2021 the resultant reduction in cost led
to further increases.
Increase due to ongoing advanced grade control and exploration activities
partially offset by minor local changes in gold price and an overall increase
in costs.
Changes were largely as a result of exploration, with gains seen from the
open pits, specifically from Oere, Pamao, KCD and Gorumbwa as well as
from the initial Inferred Mineral Resource definition of the 11000 lode in the
underground.
Additions less than 0.5Moz
Sub-total
Due to:
Changes primarily due to model changes in the historic mining areas in the
north of the mine which accounted for an overall reduction.
New grade control drilling at Block 3W resulted in a decrease in model grade
and re-interpretation of the intrusives in the deeper portions of Blocks 7 and 8
resulted in further losses. These were partially offset by lower costs resulting
from a new long-term contract resulting in additions.
Other
Reductions less than 0.5Moz
Mineral Resource as at 31 December 2021
Moz
124.5
(0.4)
124.1
(2.9)
121.2
3.4
0.9
0.7
0.6
0.3
127.1
(2.2)
(0.6)
(1.1)
123.2
Copper
The AngloGold Ashanti Mineral Resource reduced from 4.39Mt (9,677Mlb) in December 2020 to 4.26Mt (9,384Mlb) in December 2021 due to
methodology changes of 0.13Mt (293Mlb). The Mineral Resource was estimated at a copper price of $3.50/lb (2020: $3.30/lb).
Mineral Resource – Copper
Mineral Resource as at 31 December 2020
Reductions
Quebradona
Mineral Resource as at 31 December 2021
Due to:
Decreases resulted from the remodelling of the orebody including
three new drill holes.
Mt
4.39
Mlb
9,677
(0.13)
(293)
4.26
9,384
78
79
AngloGold Ashanti Limited 2021AngloGold Ashanti Limited 2021 MINERAL RESOURCE AND ORE RESERVE – SUMMARY continued
Ore Reserve
Gold
The AngloGold Ashanti Ore Reserve increased from 29.7Moz in December 2020 to 29.8Moz in December 2021. This annual net increase
of 0.1Moz includes additions due to exploration and modelling changes of 4.1Moz. This increase was partially offset by depletion of
2.6Moz and reductions due to other factors of 1.4Moz. The Ore Reserve was estimated using a gold price of $1,200/oz, unless otherwise
stated (2020: $1,200/oz).
Ore Reserve – Gold
Ore Reserve as at 31 December 2020
Depletions
Additions
Iduapriem
Geita
Kibali
Sunrise Dam
Other
Reductions
Obuasi
Other
Ore Reserve as at 31 December 2021
Sub-total
Due to:
The net increase is primarily due to the decrease in costs resulting from
signing a new mining contract and operational changes.
The significant increase is mainly due to ongoing drilling exploration success
resulting in larger pit designs. The open pit shell and underground slope
design changes contributed to an increase of 27% and 3% to the Ore Reserve
respectively.
The increase in Ore Reserve was primarily as a result of the conversion of the
3000 and 9000 lode extensions in the KCD underground, and the addition of
the Oere pit and growth in the Pamao pit due to exploration successes. The
price used for pit optimisation at Pakaka and Gorumbwa also changed from
$1,000/oz to $1,200/oz which contributed to the increase seen.
The increase in the reported Ore Reserve is due to exploration success and
a revised methodology for underground stope optimisation offset by more
conservative extraction ratios and increased unit costs.
Additions less than 0.3Moz
Sub-total
Due to:
Operational changes primarily associated with design reviews in historically
mined areas to eliminate low confidence stopes resulted in a net decrease
which was partially offset by methodology changes.
Reductions less than 0.3Moz
Moz
29.7
(2.6)
27.1
0.9
0.8
0.5
0.4
0.5
30.2
(0.4)
(0.0)
29.8
Copper
The AngloGold Ashanti Ore Reserve increased from 1.41Mt (3,105Mlb) in December 2020 to 1.47Mt (3,250Mlb) in December 2021.
This gross annual increase of 0.07Mt (145Mlb) is due to methodology changes. The Ore Reserve was estimated at a copper price of
$2.90/lb (2020: $2.65/lb).
Ore Reserve – Copper
Ore Reserve as at 31 December 2020
Additions
Quebradona
Ore Reserve as at 31 December 2021
Due to:
Result of an update in the Mineral Resource model due to three
new drill holes, in addition to an upgrade in Mineral Resource
classification based on conditional simulation.
Mt
1.41
Mlb
3,105
0.07
145
1.47
3,250
Note:
The Mineral Resource, as reported, is inclusive of the Ore Reserve component, unless otherwise stated. Mineral Resource and Ore Reserve
estimates are reported as at 31 December 2021 and are net of 2021 production depletion. Although the term Mineral Reserve is used
throughout the SAMREC Code, it is recognised by the SAMREC Code that the term Ore Reserve is synonymous with Mineral Reserve. AngloGold
Ashanti elects to use Ore Reserve in its reporting. To reflect that figures are not precise calculations and that there is uncertainty in their
estimation, AngloGold Ashanti reports tonnage content for gold to two decimals and tonnage content for copper with no decimals.
By-products
Several by-products will be recovered as a result of processing
of the gold Ore Reserve and copper Ore Reserve. These include
0.43Mt of sulphur from Brazil, 20.5Moz of silver from Argentina
and 28.1Moz of silver from Colombia. Molybdenum, at present, is
not planned for recovery at Quebradona. The Quebradona process
plant has been designed to treat underground ore and to produce
copper concentrate with provision of space in the plant site for a
molybdenum plant in the future.
(RCubed) for the compilation and authorisation of Mineral
Resource and Ore Reserve reporting. It is a fully integrated system
for the reporting and reconciliation of Mineral Resource and Ore
Reserve that supports various regulatory reporting requirements,
including the U.S. Securities and Exchange Commission (SEC) –
under Subpart 1300 of Regulation S-K (Regulation S-K 1300) – 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.
Corporate governance
AngloGold Ashanti has an established Mineral Resource and
Ore Reserve Steering Committee (RRSC), which is responsible
for setting and overseeing the Company’s Mineral Resource
and Ore Reserve governance framework and for ensuring that
it meets the Company’s goals and objectives while complying
with all relevant regulatory codes. Its membership and terms of
references are mandated under a policy document signed by the
Chief Executive Officer.
The Audit and Risk Committee and Investment Committee
review the Mineral Resource and Ore Reserve and make a
recommendation to the board, which provides final approval for
the publication of the Mineral Resource and Ore Reserve.
AngloGold Ashanti has developed and implemented a rigorous
system of internal and external reviews aimed at providing
assurance in respect of Mineral Resource and Ore Reserve
estimates. In 2021, the following operations were subject to an
external review in line with the policy that each operation or project
will be reviewed by an independent third party on average once
every three years:
• • Mineral Resource and Ore Reserve at Iduapriem
• • Mineral Resource and Ore Reserve at Obuasi
• • Mineral Resource and Ore Reserve at Kibali
• • Mineral Resource and Ore Reserve at Serra Grande
• • Mineral Resource and Ore Reserve at Sunrise Dam
• • Mineral Resource and Ore Reserve at Tropicana
The external reviews of the Mineral Resource and Ore Reserve
were conducted by SRK Consulting for the mines operated by
AngloGold Ashanti. Certificates of sign-off have been received for
all AngloGold Ashanti managed operations and projects to state
that the Mineral Resource and Ore Reserve estimates are reported
in accordance with the SAMREC Code. In the case of Kibali, an
independent technical review of the annual Mineral Resource
and Ore Reserve estimates was undertaken by RSC Mining and
Mineral Exploration on behalf of the managing partner Barrick. No
significant flaws were identified.
In addition, numerous internal Mineral Resource and Ore Reserve
process reviews were completed by suitably qualified Competent
Persons from within AngloGold Ashanti and no significant
deficiencies were identified. The Mineral Resource and Ore Reserve
governance framework is underpinned by appropriate Mineral
Resource Management processes and protocols that ensure
adequate corporate governance. These procedures have been
developed to comply with the guiding principles of the US Sarbanes-
Oxley Act of 2002 (SOX).
AngloGold Ashanti makes use of a web-based group reporting
database called the Resource and Reserve Reporting System
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.
Where technical experts involved in the estimation of Mineral
Resource or Ore Reserve feel that their technical advice has
been ignored and may represent a risk to the Mineral Resource
or Ore Reserve to be published, they are obliged to inform the
Mineral Resource and Ore Reserve Steering Committee in writing.
AngloGold Ashanti’s Whistle Blowing Policy and links can be found
at https://www.anglogoldashanti.com/sustainability/governance/
ethics/ and can also be used if the person deems they will be
compromised in the process.
Competent persons
The information in this report relating to Exploration Results,
Mineral Resource and 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 (which uses
a Competent Person employed by Barrick) and have sufficient
experience relevant to the style of mineralisation and type of
deposit under consideration and relevant 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 all the Ore Reserve has been confirmed
to be 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 report, in the form and context
in which it appears.
Accordingly, the chairperson of the Mineral Resource and Ore
Reserve Steering Committee, Mr. VA Chamberlain, MSc (Mining
Engineering), BSc (Hons) (Geology), MGSSA, FAusIMM, assumes
responsibility for the Mineral Resource and Ore Reserve processes
for AngloGold Ashanti and is satisfied that the Competent Persons
have fulfilled their responsibilities. Mr. VA Chamberlain has 34
years’ experience in exploration and mining and is employed full-
time by AngloGold Ashanti and can be contacted at the following
address: 112 Oxford Road, Houghton Estate, Johannesburg, 2198,
South Africa.
A detailed breakdown of our Mineral Resource and Ore Reserve
and backup detail is available on the AngloGold Ashanti website
www.anglogoldashanti.com. The full comprehensive may
be accessed at www.aga-reports.com.
80
81
AngloGold Ashanti Limited 2021AngloGold Ashanti Limited 2021 MINERAL RESOURCE AND ORE RESERVE – SUMMARY continued
Mineral Resource by region, inclusive of Ore Reserve (attributable)
Mineral Resource by region, exclusive of Ore Reserve (attributable)
Gold
as at 31 December 2021
Africa
Americas
Australia
AngloGold Ashanti
Copper
as at 31 December 2021
Americas
AngloGold Ashanti
Category
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
Ore Reserve by region (attributable)
Gold
as at 31 December 2021
Africa
Americas
Australia
AngloGold Ashanti
Category
Proved
Probable
Total
Proved
Probable
Total
Proved
Probable
Total
Proved
Probable
Total
Tonnes
million
56.44
361.14
179.17
596.75
114.47
1,203.75
767.87
2,086.08
56.08
58.45
50.07
164.59
226.98
1,623.33
997.11
2,847.42
Tonnes
million
86.74
227.33
305.94
620.02
86.74
227.33
305.94
620.02
Tonnes
million
41.33
183.69
225.02
11.11
203.74
214.86
26.41
25.31
51.73
78.86
412.74
491.60
Grade
g/t
3.38
2.52
3.43
2.87
1.33
0.90
0.75
0.87
1.35
1.73
2.53
1.85
1.84
1.29
1.32
1.35
Grade
%Cu
0.95
0.87
0.48
0.69
0.95
0.87
0.48
0.69
Contained gold
Tonnes
191.03
909.64
613.98
1,714.66
151.88
1,085.22
576.86
1,813.96
75.74
101.24
126.83
303.82
418.66
2,096.11
1,317.67
3,832.44
Moz
6.14
29.25
19.74
55.13
4.88
34.89
18.55
58.32
2.44
3.26
4.08
9.77
13.46
67.39
42.36
123.22
Contained copper
Tonnes million
0.82
1.97
1.47
Pounds million
1,814
4,338
3,231
4.26
0.82
1.97
1.47
4.26
Grade
Contained gold
g/t
2.58
2.72
2.69
2.70
0.98
1.07
1.46
2.13
1.79
2.22
1.82
1.89
Tonnes
106.54
499.29
605.84
29.99
199.60
229.60
38.43
54.04
92.47
174.97
752.93
927.90
9,384
1,814
4,338
3,231
9,384
Moz
3.43
16.05
19.48
0.96
6.42
7.38
1.24
1.74
2.97
5.63
24.21
29.83
Gold
as at 31 December 2021
Africa
Americas
Australia
AngloGold Ashanti
Copper
as at 31 December 2021
Americas
AngloGold Ashanti
Category
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
Ore Reserve by region (attributable) continued
Copper
as at 31 December 2021
Americas
AngloGold Ashanti
Category
Proved
Probable
Total
Proved
Probable
Total
Tonnes
million
13.16
179.46
179.17
371.79
64.29
1,035.46
767.37
1,867.11
29.92
33.13
50.07
113.12
107.37
1,248.04
996.61
2,352.02
Tonnes
million
45.15
148.91
305.94
500.01
45.15
148.91
305.94
500.01
Tonnes
million
–
120.01
120.01
–
120.01
120.01
Grade
g/t
3.98
2.36
3.43
2.93
1.50
0.87
0.75
0.84
1.25
1.42
2.53
1.87
1.73
1.10
1.32
1.22
Grade
%Cu
0.69
0.68
0.48
0.56
0.69
0.68
0.48
0.56
Contained gold
Tonnes
52.32
422.86
613.98
1,089.15
96.24
897.36
576.25
1,569.85
37.49
47.21
126.83
211.52
186.05
1,367.43
1,317.06
2,870.53
Moz
1.68
13.60
19.74
35.02
3.09
28.85
18.53
50.47
1.21
1.52
4.08
6.80
5.98
43.96
42.34
92.29
Contained copper
Tonnes million
0.31
1.01
1.47
Pounds million
684
2,218
3,231
2.78
0.31
1.01
1.47
2.78
6,134
684
2,218
3,231
6,134
Grade
Contained copper
%Cu
Tonnes million
Pounds million
–
1.23
1.23
–
1.23
1.23
–
1.47
1.47
–
1.47
1.47
–
3,250
3,250
–
3,250
3,250
82
83
AngloGold Ashanti Limited 2021AngloGold Ashanti Limited 2021
EXPLORATION AND PLANNING FOR THE FUTURE
Our exploration programmes enable us to ultimately expand our Ore Reserve and are based on consistent
standards and processes across the AngloGold Ashanti portfolio which are guided by peer reviews.
We identify the best group of drill targets, prioritising those that
have the highest potential for success.
We have developed a system – Exploring for value (E4V) – that
goes beyond SAMREC limitations to ensure that our exploration
activities are focused on maximising value for the business and
allow us to bring into play, at an early stage, very low confidence
material. This means we can ensure our exploration pipeline can
deliver into our life-of-mine (LOM) plans at the right time.
The system allows for an understanding of the geology from
the earliest stage of development. In addition to integrating our
E4V process with our LOM planning, we have also integrated
our E4V process with our accounting standards. Through this
integration, as an area is explored and drilled, a series of reviews
and appropriate economic studies are used to support the next
level of exploration.
Targeted investments during the year led to two positive advances,
with Pure Gold Mining, in which we have a 16% stake, continuing
to ramp up at the Madsen mine redevelopment in Red Lake,
Ontario. Further, AngloGold Ashanti made an offer to purchase
Corvus Gold Inc. and the acquisition was completed in January
2022. The Company also actively monitors for new early-stage
opportunities that would be a potential fit for our portfolio.
Some highlights of our greenfield and brownfield exploration
work follow.
Greenfield exploration
Our greenfield exploration programmes are designed to discover a
new Mineral Resource that will ultimately lead to the development
of new gold mines. In 2021, $38m was spent on greenfield
exploration. Exploration tenements cover over 4,400km2 of highly
prospective ground in four countries – Australia, Brazil, Argentina
and the United States. In total, 114km of diamond, reverse
circulation (RC) and aircore drilling was completed in greenfield
exploration programmes in 2021.
In the United States, a total of 25,538m of RC and 14,581m of
diamond drilling was completed during the year at the Silicon
project near Beatty, Nevada. Work focused on expanding the
project along strike and at depth. Infill drilling was completed as
part of a successful conceptual study that defined a first Inferred
Mineral Resource of 3.37moz of gold at 0.87g/t and 14.17moz
silver at 3.66 g/t contained in 120.44Mt constrained within a pit
optimisation completed at a $1500/oz gold price. Development
drilling to expand gold mineralisation and tighten average drill
spacing to increase the Mineral Resource classification will
continue as part of project studies in 2022.
At the Merlin target, in the Silicon project tenement area, 5,198m
of RC and 7,104m of diamond drilling were completed. The drilling
tested a target area with favourable volcanic stratigraphy and
widely spaced gold-bearing drill intercepts that will be followed
with additional drilling in 2022.
In Argentina, field programmes started in the fourth quarter of
2021 with systematic talus fines (890 samples) and ridge and spur
sampling (225 samples) undertaken at the El Cori project.
Brownfield exploration
During 2021, brownfield exploration activities were undertaken
across the globe. We completed 1,059km of drilling with a total
expenditure of $83m (capital) and $76m (expensed) for the year.
Tanzania: Capitalised (underground) and expensed (surface/
underground) drilling programmes completed a total of 167,392m
during the year at a cost of $37m.
Mineral Resource development drilling was carried out at Star &
Comet Cut 2 and Cut 3 and assay results confirmed the continuity
of the mineralisation for both Cuts. While exploratory drilling
conducted at Star and Comet Cut 3 towards Ridge 8 returned
results confirming open-ended mineralisation. Results at Cut 4
confirmed the hanging wall and footwall structures as modelled
and exploratory drilling results from Cut 5 confirmed the continuity
of the mineralisation.
At Nyankanga Block 1 and Block 2, the drilling results confirmed
up-dip continuity of the mineralisation for both targets. The
results from a short drilling programme at Block 5 suggest
possible down-dip continuity of mineralisation. Drilling results
from Geita Hill confirm open-ended down-dip extensions of
the ore zones. At Lone Cone, the results confirm the down-dip
continuity of mineralisation and increased the Mineral Resource
model confidence.
Results from exploration drilling at Nyamulilima Cut 1 and 2
confirmed the model. The assay results from the sterilisation
drilling for a proposed waste dump site returned no significant
intersections, and at Xanadu, drilling is in progress with the results,
so far, not showing obvious down-dip continuity.
Non-drilling exploration programmes consisted of surface
geological mapping and integration of various geological datasets
to better understand the sub-surface geology in an effort to
identify new exploration targets.
Exploration was impacted by the suspension of underground
mining activities after the tragic death of one of our colleagues in
May 2021. The resumption of the drilling was staged, with the first
rig restarting in July 2021. Exploration and infill drilling activities in
the year focused on 41 Level in Blocks 1 and 10, 32 Level in Blocks
8 and 10, 21N1, 26 and 26N3 Levels in Sansu and stockpiles along
the ODD decline.
Democratic Republic of the Congo: Capitalised and expensed
drilling programmes, at Kibali, completed a total of 16,035m
during the year at a cost of $4m.
Tete Bakangwe was delivered as an opportunity, and post Mineral
Resource conversion drilling it has been added to the mine plan
for 2022.
First phase drilling results testing down plunge continuity of high
grade at Kalimva support an underground project. At KCD, step
out holes have confirmed continuity of 3000, 5000 and 11000
system 500m down plunge, with additional mineralisation below
11000 lode.
In Argentina, a total of 38,895m of drilling was completed at a
cost of $7m. Exploration was focused on creating new Mineral
Resource which could be converted to Ore Reserve to extend the
current life of mine.
In Brazil, at Cuiabá and Lamego, 151,042m were drilled at a cost
of $14m.
In Colombia, at Quebradona, work was completed on drill hole
relogging, tuff differentiation logging, geometallurgical modelling
and geology project support. Preparation and support for the
geotechnical campaign including laboratory follow up was started
as were routine measurements of groundwater levels, flow
stations and rain stations.
Outlook
• • Our planned investment (capital and expensed) in brownfield
exploration drilling ramps up to a level of approximately
$210m to $220m for Ore Reserve and Mineral Resource
additions in 2022
• • We expect another year of good Mineral Resource and Ore
Reserve delivery across the portfolio
Guinea: Capitalised and expensed drilling programmes completed
• • We have expanded our project exploration budget in 2022 to
a total of 34,336m during the year at a total cost of $7m. The 2021
allow for expanded drilling in Nevada
drilling was impacted by contractor changes and significant delay
in mobilising three of the contractor’s new rigs.
Ghana: At Obuasi, drilling continued with a total of 37,583m drilled
in the underground exploration programmes at a cost of $7m.
• • We continued to take advantage of field restrictions that
were in place during most of 2021 to generate a group of
new terranes and districts through data reviews and desktop
assessments for field validation in 2022
s
e
t
a
t
S
d
e
t
i
n
U
,
n
o
c
i
l
i
S
84
85
AngloGold Ashanti Limited 2021AngloGold Ashanti Limited 2021
The balance sheet remains
in a solid position, with
approximately $2.6bn
in liquidity
Christine Ramon
Chief Financial Officer
CFO’s REPORT
AND OUTLOOK
AngloGold Ashanti experienced a challenging 2021,
including the effects of rising inflation, the ongoing
COVID-19 pandemic and its impact on production and costs,
lower realised grades across certain operations during the
ongoing reinvestment phase and the temporary suspension
of underground mining at the Obuasi gold mine following the
sill pillar incident on 18 May 2021.
Revised production, capital and cost guidance (after adjusting
cost for the impact of COVID-19) was achieved and the business
generated free cash flow before growth capital expenditure
of $426m. A final dividend of 14 US cents per share ($60m)
was declared, taking the gross dividend for the year to 20 US
cents per share. The balance sheet remains in a solid position,
with approximately $2.6bn in liquidity, including cash and cash
equivalents of approximately $1.15bn, at the end of 2021.
Salient financial results for the year include:
• • Basic earnings decreased to $622m from $946m in 2020, after
once-off expenses of $87m
• • Total cash costs of $963/oz for 2021, an increase of 22% from
$790/oz in 2020
• • All-in sustaining costs (AISC) of $1,355/oz compared to
$1,037/oz in 2020, an increase of 31%, reflects the increase in
total cash costs and the continued reinvestment in orebodies
and Brazilian TSFs
• • Net cash inflow from operating activities decreased by 18% to
$1,268m in 2021, from $1,545m in 2020
• • Free cash flow of $104m in a transitional year with significant
reinvestment, COVID-19 impacts and Obuasi underground
suspension
• • Adjusted net debt of $765m at the end of 2021; Adjusted net debt
to Adjusted EBITDA ratio of 0.42 times
• • Cumulative cash dividends of $231m received from Kibali in 2021
Strategic priorities
The key financial indicators by which the Company measures
shareholder value creation are production, AISC, normalised
cash return on equity (nCROE), and absolute and relative total
shareholder return (TSR) (see Rewarding delivery). Production and
AISC targets are measured on an annual basis, while the nCROE
and TSR targets are measured on a three-year trailing average
basis. In meeting these targets, the Company focuses on three
strategic priorities: production and cost performance to optimise
margins; improve balance sheet strength and preserve liquidity;
and free cash flow generation – while applying a disciplined capital
allocation framework.
Production and cost performance to optimise margins
2021
Production and cost metrics
Production (000oz)
Costs
All-in sustaining costs ($/oz)(1)
Total cash costs ($/oz)(1)
2021
2,472
1,355
963
2020
Guidance Revised guidance
2,806
2,700 – 2,900
2,450 – 2,600
1,037
1,130 – 1,230
1,240 – 1,340
790
790 – 850
890 – 950
(1) AISC of $1,321/oz and total cash cost of $935/oz after adjusting for the estimated impacts of COVID-19
Our cost performance in 2021 reflects the reinvestment
programme that commenced at the beginning of 2020 across
our portfolio and continued during the year in review, including
increased conversion of Mineral Resource to Ore Reserve, waste
stripping at open pit mines and improved rates of underground
development. Increased costs also reflected significant
investment in TSF compliance in Brazil, following new legislation in
Brazil (see CEO’s review and outlook).
Margins narrowed in 2021, a result of increased sustaining
capital expenditure, lower production and the consequent impact
on costs.
Our overall focus remains on improving our operational
performance, underpinned by the introduction of the new
Operating Model, continued cost discipline and the Full Asset
Potential Review starting in 2022.
Margins
Total cash costs
All-in sustaining costs
Year ended
Year ended
2021
46%
25%
2020
56%
42%
Despite these headwinds, margins remain healthy and reflect the
Company’s ability to generate sustainable cash flow.
Cost performance reflecting significant re-investment phase
Total cash costs
Year ended Dec 2021 vs. Dec 2020 ($/oz)
1100
1000
900
800
700
600
500
External factors
790
(18)
40
812
121
23
26
2
(9)
(5)
(7)
963
Dec 20
Exchange
Inflation
Total
Grade
Stockpile and Gip
Efficiency
Other
Royalty
Volume
By-products
Dec 21
All-in sustaining costs *
Year ended Dec 2021 vs. Dec 2020 ($/oz)
1,500
1,400
1,300
1,200
1,100
1,000
900
Reinvestments
and TSF
132
173
812
1,037
10
4
4
(1)
(4)
1,355
Dec 20
Total cash cost
Total sustaining
capex
Finance lease
payment sustaining
Corporate
costs
Rehabilitation
Sustaining
exploration
Other
Dec 21
86
87
* World Gold Council standard
AngloGold Ashanti Limited 2021AngloGold Ashanti Limited 2021
CFO’s REPORT AND OUTLOOK continued
Total cash costs per ounce for the year was $963/oz compared
with $790/oz for 2020. Total cash costs increased mainly due
to lower grades ($121/oz) and stockpile drawdowns at certain
operations ($23/oz). Inflationary pressures ($40/oz) were partially
mitigated by weaker local currencies, lower royalties and higher
silver by-product contribution.
The ratio of adjusted net debt to adjusted EBITDA was 0.42 times
at 31 December 2021 compared to 0.24 times at 31 December 2020.
The Company remains committed to maintaining a flexible
balance sheet with an Adjusted net debt to Adjusted EBITDA target
ratio not exceeding 1.0 times through the cycle.
Proactive supply chain strategies, including holding three to six
months inventories of consumables and spares, delayed the
inflationary impacts and enabled business continuity during the
year. We are closely monitoring the sea freight market, given
ongoing capacity constraints, which has impacted lead times on
deliveries, as well as freight and logistics costs. We will continue
to manage our supply chain proactively to ensure resilience and
continuity of supply.
AISC of $1,355/oz compared with $1,037/oz in 2020, was higher
due to increased sustaining capital expenditure and higher
cash costs. AISC included an estimated $34/oz impact due to
COVID-19 (including $17/oz related to estimated additional cost
impacts and $17/oz related to estimated lost production) and an
estimated $55/oz impact relating to the Brazilian TSF compliance
programme (see risk 6 in Managing our risks and opportunities).
At 31 December 2021, the balance sheet remained robust, with
strong liquidity comprising the $1.4bn multi-currency revolving
credit facility (RCF) of which $1,367m was undrawn, the $150m
Geita RCF of which $40m was undrawn, the $65m Siguiri RCF of
which $30m was undrawn, the South African R150m ($10m) RMB
corporate overnight facility which was undrawn, and cash and
cash equivalents of approximately $1.15bn.
On 22 October 2021, a new $750m bond was issued by AngloGold
Ashanti Holdings plc, which is fully and unconditionally guaranteed
by the Company, with a 7-year tenor at a record low coupon of
3.375% per annum. The proceeds from the new bond were used
to fund the repayment of the $750m, 5.125% per annum notes due
in 2022 through a cash tender offer followed by the redemption
of any remaining notes due. This translates into a $13m interest
saving annually.
Basic earnings (profit attributable to equity shareholders) for the
year ended 31 December 2021 were $622m, or 148 US cents per
share, compared with $946m, or 225 US cents per share, for the
year ended 31 December 2020.
Liquidity remains strong, providing good flexibility. Our cash
balance of $1.15bn excludes our $499m share of the Kibali cash
balance. We funded the $365m Corvus acquisition post year-end
from cash on hand.
Headline earnings for the year ended 31 December 2021 were
$612m, or 146 US cents per share, compared with $1.0bn, or
238 US cents per share for the year ended 31 December 2020.
Headline earnings were lower year-on-year mainly due to lower
gold production, higher operating and exploration costs, as well as
other expenses related to care and maintenance at Obuasi ($45m),
restructuring and related costs ($18m), foreign exchange ($43m)
and costs associated with the tender offer for, and subsequent
redemption of, the 5.125% per annum notes due 2022 ($24m).
These effects were partially offset by the marginally higher gold
price received and lower net finance costs ($92m).
Adjusted earnings before interest, tax, depreciation and
amortisation (adjusted EBITDA) for the year ended 31 December
2021 was $1.8bn compared with $2.47bn for the year ended
31 December 2020. Adjusted EBITDA was lower year-on-year
mainly due to lower ounces of gold sold and higher operating
costs, partially offset by the marginally higher gold price received.
Improve balance sheet strength and preserve liquidity
Our balance sheet strategy is underpinned by disciplined capital
allocation and self-funded improvements in the balance sheet over
the long term.
Although adjusted net debt increased 28% from $597m at
31 December 2020 to $765m at 31 December 2021, it is down 76%
from its peak in 2014 – all without any equity raise – and finance
costs are 58% lower over the same period.
Credit ratings remained unchanged, with investment grade
from Moody’s (Baa3) and Fitch (BBB-), with negative and stable
outlooks, respectively. The Standard & Poor’s rating remained one
notch below investment grade (BB+), with a positive outlook.
Long-term balance sheet improvement
achieved through disciplined capital allocation
– without equity issuance
Facilities and cash available
(million)
ZAR150m
$1,154m
Cash
c.$2.6bn *
$1,437m **
RCFs
* Total calculated with ZAR150m O/N facility at R15.9921/$
** US$1.4bn multi-currency RCF includes a capped facility of A$500m ($/A$0.7260)
Adjusted net debt, finance costs
($m)
3,500
3,000
2,500
2,000
1,500
1,000
500
0
Self-funded development of Tropicana, Kibali
Adjusted net debt down 76% from peak in 2014
Finance costs down 58% since 2014
2013
2014
2015
2016
2017
2018
2019
2020
2021
Self-funded redevelopment of Obuasi
350
300
250
200
150
100
50
0
(cid:31) Adjusted net debt (cid:31) Finance costs (RHS)
Adjusted net debt to adjusted EBITDA
ratio at 0.42 times at 31 December 2021
2.5x
2.0x
1.5x
1.0x
0.5x
0x
3,105
3,133
2,190
2,001
1,916
1,659
1,581
1.0x
Target through
the cycle
765
597
2013
2014
2015
2016
2017
2018
2019
2020
2021
Last-12-months adjusted net debt to adjusted EBITDA ratio
Figures to 2016 reflect continuing and discontinued operations
Free cash flow generation
Net cash inflow from operating activities decreased to $1.268bn
for the year ended 31 December 2021, compared to $1.545bn for
the year ended 31 December 2020. This decrease was mainly due
to lower gold sales and higher operating costs, partially offset by
the marginally higher gold price received, lower cash taxes, higher
dividends received and favourable movements in working capital.
Free cash flow of $104m for the year, compared to a free cash flow
of $743m in 2020, with the reduction due to fewer gold ounces
sold, higher capital expenditure and higher operating costs, partially
offset by reduction in net finance costs, taxes and working capital
inflows, as well as the marginally higher gold price received.
Free cash flow before growth capital – the metric on which
dividends are calculated – was $426m for the year ended
31 December 2021, compared to $1.0bn for the year ended
31 December 2020.
in Kibali Goldmines S.A. AngloGold Ashanti’s share of these
dividends, net of withholding taxes, amounted to $81m.
In addition, AngloGold Ashanti received a cash distribution of
$150m from Kibali (Jersey) Limited, which comprised loan
repayments. At 31 December 2021, the Company’s attributable
share of the outstanding cash balances awaiting repatriation
from the Democratic Republic of the Congo (DRC) was $499m.
The cash and cash equivalents held at Kibali Goldmines S.A.
are subject to various administrative steps before they can be
distributed to Kibali (Jersey) Limited and are held across four
banks in the DRC. The cash is fully available for the operational
requirements of Kibali Goldmines S.A. Barrick, the operator of the
Kibali joint venture, continues to engage with the DRC government
regarding the 2018 Mining Code and the cash repatriation.
Free cash flow was further impacted by continued lock-ups of value
added tax (VAT) receivables at Geita in Tanzania and Kibali in the
DRC, and export duties receivable at Cerro Vanguardia in Argentina:
During 2021, Kibali Goldmines S.A. (the company which owns
the Kibali gold mine) paid a total dividend of $200m to its two
shareholders, Kibali (Jersey) Limited, which is jointly owned by
Barrick and AngloGold Ashanti, and holds a 90% stake in Kibali
Goldmines S.A., and Société Minière de Kilo-Moto S.A. (SOKIMO),
a DRC government parastatal entity that holds a 10% stake
• • In Tanzania, net overdue VAT receivables increased by $3m
during 2021 to $142m at 31 December 2021 from $139m at
31 December 2020. During the year new claims of $50m were
submitted and verified claims of $54m were offset against
corporate tax payments. The Company will continue offsetting
verified VAT claims against corporate taxes.
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AngloGold Ashanti Limited 2021AngloGold Ashanti Limited 2021 CFO’s REPORT AND OUTLOOK continued
• • In the DRC, the attributable share of the net recoverable VAT
balance is $73m as at 31 December 2021, a $8m increase from
$65m as at 31 December 2020.
• • In Argentina, the Company recorded a $4m decrease in the
export duty receivables during 2021 to a net amount of $19m at
31 December 2021 from $23m at 31 December 2020.
Cerro Vanguardia had a cash balance equivalent to $139m at
31 December 2021. During 2021, AngloGold Ashanti received
an offshore dividend of $19m (net of withholding taxes) paid in
US dollars. Out of the $139m cash balance, monies equivalent
to $131m are available to be paid to AngloGold Ashanti’s
offshore and onshore investment holding companies in the
form of declared dividends. Applications have been made to the
Argentinean Central Bank to approve the purchase of US dollars
in order to distribute an offshore dividend of $114m to AngloGold
Ashanti. While the approval is pending, the cash remains fully
available for Cerro Vanguardia’s operational requirements.
Free cash flow results are used in the determination of the
Company’s achievement of nCROE, a measure of how much
cash is generated by the Company for each US dollar of equity in
issue. Cash generated is adjusted for once-off, abnormal items to
achieve a normalised cash flow. This is then compared against a
US dollar cost of equity (USD COE), which is calculated using an
external financial model and is not Company specific.
Capital allocation framework
Our capital allocation is disciplined and focused on improving
value without placing undue financial or operating risk on the
business. The Company will continue to rank and prioritise its
Free cash flow generation
(Free cash flow before growth capital ($m))
investments, assessing them on their respective returns and
affordability with respect to maintaining leverage ratios at or
around targeted levels. The Company weighs these competing
priorities and considers the full suite of financing opportunities
available when determining whether to proceed with an
investment. Free cash flow generated by the business is applied
in a balanced manner to the four pillars of our capital allocation
strategy, in order of allocation:
• • Sustaining capital expenditure to prioritise Ore Reserve growth
• • Maintaining a strong and solid balance sheet to provide
optionality and flexibility through the cycle
• • Return of value to shareholders through the dividend policy
• • Self-funding any major growth capital projects
In 2021, we generated $1.4bn of cash from operations and
received $231m of dividends from Kibali, our joint venture. After
tax payments and financing costs, we invested $717m * (53%
of our cash from operations) in sustaining capital, to fund Ore
Reserve development and waste stripping.
We self-funded our growth capital incurred in 2021 of $311m *.
This includes $122m at Obuasi and $58m at Geita, for the new
open pit and underground developments.
* Excluding equity-accounted joint ventures
Capital expenditure
Two years into our inward reinvestment initiative, strong progress
has been made with a cumulative addition of 8.7Moz of Ore
Reserve, before depletion, at a cost of $68/oz. This was achieved
primarily by exploration activities across the portfolio (see risk 2
included in Managing our risks and opportunities).
1,200
1,000
800
600
400
200
0
371
169
202
2015
424
116
308
2016
174
124
50
2017
278
150
128
2018
448
321
127
2019
1,003
260
743
2020
426
322
104
2021
(cid:31) Free cash flow generation (cid:31) Growth capex
2015 – Adjusted for bond redemption premium on part settlement of $1.25bn high-yield bonds of $61m
2016 – Adjusted for bond redemption premium on settlement of remaining $1.25bn high-yield bonds of $30m
2017 – Adjusted for South African retrenchment costs paid of ~$49m
2018 – Adjusted for South African retrenchment costs paid of ~$61m
Capital distribution in 2021
INFLOWS
OUTFLOWS
Net taxes paid
$316m
Cash from operations
$1,353m
Other income
• • Dividends from joint
ventures $231m
• • Interest received $58m
• • Other dividends $22m
• • Net other movements $17m
Total: $328m
Finance costs and other
borrowings
• • Finance costs $159m
• • Lease liabilities $63m
Total: $222m
Sustaining capex
Including Ore Reserve
development and stripping
capex: $717m (1)
TOTAL INFLOWS
TOTAL OUTFLOWS
$1,681m inflows
$1,255m outflows
m
6
2
4
$
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Balance sheet strength
• Adjusted net debt to adjusted
EBITDA
0.42x
Returns to shareholders
• Dividends
$240m
Growth and investment
• Key project investments including;
• Obuasi, $122m
• Joint ventures
$322m
(1) Excludes joint ventures
Our capital allocation framework enforces a disciplined and focused approach to value creation through effective
management and without placing undue financial or operating risk on the business
AngloGold Ashanti added 2.7Moz Ore Reserve before depletion in
2021. At Geita, 0.8Moz of Ore Reserve were added, for a total of
2.2Moz added over the last two years. Iduapriem added 0.9Moz,
Kibali 0.5Moz and Sunrise Dam 0.4Moz. There were steady gains
of 0.5Moz in Ore Reserve added across the rest of the portfolio.
The Company has declared a maiden Mineral Resource of 3.4Moz
at Silicon in Nevada, USA. Following the acquisition of Corvus
completed on 18 January 2022, it is currently anticipated that
the first production from the Nevada region will be realised in
approximately three years.
Capital expenditure activities such as waste stripping at Tropicana,
Iduapriem and Sunrise Dam’s Golden Delicious pit continued and
remained on track. At Geita, the underground portal development
at Geita Hill East progressed and mining operations started at the
Nyamulilima open pit. In Brazil, investment continued to convert
existing TSFs to dry-stack facilities at all mine sites, in a market
characterised by increased competition for skills and engineering
resources due to the COVID-19 pandemic and the industry
requirements to meet regulatory deadlines relating to TSFs.
Total capital expenditure (including equity-accounted joint
ventures) increased by 45% year-on-year to $1.1bn, compared to
$757m in 2020. This increase was largely due to a 57% increase
in sustaining capital expenditure to $778m, from $497m in 2020,
which includes $137m for the Brazil TSF conversion. Total growth
capital expenditure increased by 24% to $322m compared to
$260m in 2020. (see risk 3 included in Managing our risks and
opportunities).
As we continue to allocate capital to this important exploration
and development programme, in addition to increased capital
expenditure on TSFs in Brazil, sustaining capital is expected to
remain at elevated levels of $300/oz between 2022 and 2024. In
subsequent years, we expect this to return to normalised levels of
about $200/oz.
(Refer to Maintain long-term optionality for an update on capital
projects.)
Capital expenditure to sustain and develop our business
Capital expenditure ($/oz) from continuing operations
2018
170
50
2019
151
111
2020
180
95
2021
310
130
0
100
200
300
400
500
(cid:31) Sustaining (cid:31) Non-Sustaining
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AngloGold Ashanti Limited 2021AngloGold Ashanti Limited 2021
CFO’s REPORT AND OUTLOOK continued
2021
Delivery against 2021 financial objectives
Capital expenditure metrics
Capital expenditure
Total ($m)
Sustaining capex ($m)
Non-sustaining capex ($m)
2021
1,100
778
322
2020
Guidance
Revised guidance
757
497
260
990 – 1,140
1,030 – 1,190
720 – 820
270 – 320
700 – 800
330 – 390
Shareholder returns
Free cash flow before growth capital, our dividend metric, was
$426m (2020: $1.0bn). Our dividend policy remains 20% of free
cash flow, before growth capital, paid bi-annually. In line with this
policy, our board approved a final dividend of 14 US cents a share
($60m), based on free cash flow generated in the second half of
2021, paid in March 2022. The declaration and payment of the
final dividend resulted in a total dividend based on the financial
performance of 2021 amounting to 20 US cents per share
($85m), following an interim dividend of 6 US cents per share
($25m) declared and paid in August 2021.
Despite the challenging year, the Company has demonstrated its
ability to balance the competing capital needs of the business
with delivery on key objectives against the backdrop of leadership
change, and amidst the rapidly changing COVID-19 landscape.
The dividend pay-out allows us to maintain adequate balance
sheet flexibility in a volatile and uncertain gold price environment,
and to use our cash flows and available facilities to fund our
ongoing capital and operational requirements, including self-
funding sustaining and growth capital expenditure, should we
wish to do so.
1. Continue to grow Ore Reserve and Mineral Resource through our ongoing reinvestment strategy
• • $164m (2020: $124m) was spent on exploration and study costs
√
• • Ore Reserve increased 2.7Moz pre-depletion, for a total of 8.7Moz pre-depletion added over the last two years, at a
cost of $68/oz
• • Maiden Mineral Resource at Silicon totalling 3.4Moz
• • Sustaining capital spend at increased levels amounted to $310/oz for 2021
Details of this can be found in our
2. Maintain strong cost and capital discipline
• • Total capital expenditure + 45% year-on-year to $1.1bn in 2021 (including joint ventures), largely due to 57% increase
√
in sustaining capital expenditure of $778m
• • Total growth capital expenditure increased by 24% to $322m
• • Obuasi Redevelopment Project $122m
• • Geita $58m
• • Colombia $51m
• • Tropicana $40m
• • Siguiri $20m
• • Sunrise Dam $15m
• • AISC of $1,355/oz for 2021, reflects higher sustaining capital expenditure, lower production and higher total cash costs
• • AISC negatively impacted by COVID-19 impacts estimated at $34/oz
• • Corporate costs increased by $5m for the year
3. Continue our efforts to optimise margins and generate strong free cash flows
• • $104m in free cash flow during a transitional year with significant portfolio reinvestment, COVID-19 impacts and
voluntary temporary suspension of underground mining at Obuasi
• • Net cash inflow from operating activities decreased by 18% to $1,268m in 2021 from $1,545m in 2020
4. Improve our cash conversion efforts, with a specific focus on unlocking cash lock-up in the DRC
• • At 31 December 2021 the Company had $872m in cash (compared to $784m in 2020), VAT receivables and export
√
√
duties owed in the DRC, Tanzania and Argentina
• • DRC
• • Cash dividend of $231m received from Kibali in 2021
• • Attributable share of outstanding cash balances awaiting repatriation from Kibali was $499m at the end of the year
• • VAT receivable $73m at 31 December 2021
• • Tanzania
• • Offset verified VAT claims of $54m against corporate tax payments – VAT receivable $142m at 31 December 2021
• • Argentina
• • Cerro Vanguardia paid $19m in offshore dividends to AngloGold Ashanti – an application has been made to the
Argentinean Central Bank to approve the payment of the $114m offshore declared dividends
• • Export duties owed $19m at 31 December 2021
5. Continued efforts to manage the debt profile and maintain a healthy balance sheet
• • Adjusted net debt of $765m at the end of 2021; adjusted net debt to adjusted EBITDA ratio of 0.42 times
√
• • Improved balance sheet flexibility with new $750m, 7-year bond at 3.375% per annum
• • Strong liquidity comprising cash and cash equivalents of $1.15bn and total liquidity of $2.6bn
√ Objective met
√ Objective partly met or ongoing
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AngloGold Ashanti Limited 2021AngloGold Ashanti Limited 2021
CFO’s REPORT AND OUTLOOK continued
Looking ahead to 2022
Guidance and indicative outlook
Production (000oz)
2022
Guidance
2,550 – 2,800
Costs
All-in sustaining costs ($/oz)
1,295 – 1,425
Capital
expenditure
Total cash costs ($/oz)
Total ($m)
925 – 1,015
1,050 – 1,150
Sustaining capex ($m)
Non-sustaining capex ($m)
Overheads
Corporate costs ($m)
Expensed exploration and
study costs ($m)
Depreciation and amortisation ($m)
Interest and finance costs ($m) – income
statement
Other operating expenses ($m)
Economic assumptions for 2022 are as follows:
Currency and commodity assumptions
A$/$ exchange rate
$/BRL exchange rate
$/ARS exchange rate
$/R exchange rate
Oil ($/bbl)
770 – 840
280 – 310
75 – 85
210 - 240
690 – 740
115 – 125
45 - 55
2022
0.76
5.30
133.00
15.00
80
Total cash costs are expected to be $925/oz to $1,015/oz.
This outlook includes inflationary pressures on the back of oil,
consumables, and logistics as well as scarce skills. Inflationary
pressure for the year is estimated at around 7% to 8% for the
group. We have benefitted from delayed inflation impacts in
2021 due to our strategic partnerships on certain global spend
categories, as well as the stocking approach we have followed at
our operations.
Still, we anticipate sustained inflationary pressure through at least
the first half of the year, which we will look to manage through our
long-range consumable contracts, leveraging our global spend and
ongoing collaboration with our strategic suppliers. The Operating
Model changes and operational improvement initiatives are
expected to further mitigate inflationary pressures.
All-in sustaining costs are expected to be between $1,295/oz and
$1,425/oz, consistent with the last year’s levels, where elevated
sustaining capital underpinned our reinvestment strategy. We
continue our multi-year reinvestment strategy in: exploration
($32/oz), Ore Reserve and underground infrastructure
development ($103/oz), waste stripping ($39/oz), Brazil TSF
compliance ($26/oz or $70m), and an incremental $45m of Ore
Reserve and infrastructure development to support Obuasi’s ramp
up. Total capital expenditure is weighted to the first half of 2022
and is guided at $1.05bn to $1.15bn and includes sustaining
capital expenditure of $770m to $840m. On a per ounce sold
basis, this amounts to $275/oz to $300/oz, in line with 2021.
incremental additional impact is included in the cost and capital
forecast ranges relating to the COVID-19 pandemic.
Sensitivities on key economic metrics based on budgeted
economic assumptions for 2022 are as follows:
These costs will remain elevated in the near term, but are planned
to reduce to more normalised levels of around $200/oz from 2024
onwards.
Non-sustaining or growth capital is guided at $280m to $310m
and includes remaining funding for Obuasi Phase 3 (approximately
$100m), Havana stripping at Tropicana (approximately $80m),
$39m for Geita Hill Underground, study costs for the two
Colombian projects (Quebradona $12m, Gramalote $9m), and
a new TSF at Iduapriem (approximately $60m). The profiling of
growth capital is heavily weighted to the first half (65%) largely due
to Tropicana.
Expensed exploration and study costs are guided in line with
previous levels, with an additional $42m to move our Nevada
projects forward.
We remain mindful that further waves of COVID-19, its impacts
on communities and economies, and the actions that authorities
may take in response, are largely unpredictable, and therefore no
Sensitivity*
10% change in the oil price
10% change in local currency
10% change in the gold price
50koz change in production
Cash from
operating activities
before taxes for
2022 ($m)
AISC
($/oz)
6
56
7
24
17
124
433
80
* All the sensitivities based on $1,650/oz gold price and assumptions used for
guidance.
Governance
Materiality
The related material financial matters identified in our materiality
assessment process were: Managing our TSFs (with an impact
on capital expenditure) and achieving business sustainability and
growth. See Focusing on our material issues in the .
Cost and capital forecast ranges are expressed in nominal terms. In addition,
production, cost and capital expenditure estimates assume neither operational
or labour interruptions (including any further delays in the ramp-up of the
Obuasi Redevelopment Project), or power disruptions, nor further changes
to asset portfolio and/or operating mines and have not been reviewed by our
external auditors. Other unknown or unpredictable factors could also have
material adverse effects on our future results and no assurance can be given
that any expectations expressed by AngloGold Ashanti will prove to have
been correct. Measures taken at our operations together with our business
continuity plans aim to enable our operations to deliver in line with our
production targets. We, however, remain mindful that the COVID-19 pandemic,
its impacts on communities and economies, and the actions authorities may
take in response to it, are largely unpredictable and therefore no incremental
additional impact is included in the cost and capital forecast ranges. Actual
results could differ from guidance and any deviation may be significant. Please
refer to the Risk Factors section in AngloGold Ashanti’s annual report on
Form 20-F for the year ended 31 December 2021 filed with the United States
Securities and Exchange Commission (SEC).
In line with past trends, production for 2022 is expected to be
about 55% weighted to the second half. Unit costs are expected to
decline into the second half of the year, as production increases.
Based on the planned production profile, we expect that unit cash
costs and AISC will exceed the top level of annual cost guidance
during the first half of the year, before trending below those ranges
in the second half.
This takes into consideration Obuasi’s ramp up to 4,000 tonnes
per day in the second half, when it will add about 140,000 ounces
to this year’s production over 2020 levels. Production is guided
between 2.55 to 2.8 million ounces. We’ll be looking for marginal
improvements in production at Tropicana, Sunrise Dam, Iduapriem
and Siguiri, and consistent performances at the remaining assets.
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AngloGold Ashanti Limited 2021AngloGold Ashanti Limited 2021
CFO’s REPORT AND OUTLOOK continued
FINANCIAL REVIEW
Oversight
Governance of our financial performance and reporting is
overseen and monitored by the Audit and Risk Committee, on
behalf of the board. See Corporate governance for further detail
on this.
External audit rotation
On 19 November 2021, the Company advised shareholders that
following the conclusion of a comprehensive tender process,
the Audit and Risk Committee has recommended the proposed
appointment of PricewaterhouseCoopers Inc. (PwC) as the
external auditor of AngloGold Ashanti with effect from the
financial year 2023. The change in external auditor was initiated by
AngloGold Ashanti’s decision to early adopt mandatory audit firm
rotation. This appointment will be submitted to shareholders for
approval at the annual general meeting of the Company scheduled
for May 2022. Ernst & Young Inc. (EY) will continue as external
auditor of AngloGold Ashanti in respect of the financial years 2021
and 2022.
Financial risk management
Details of our financial risk management exposures can be found
in group note 33 of the .
Priorities for 2022
Our financial priorities for 2022 are:
• • Achieve guidance on all metrics – continue to focus on cost
discipline, maintaining margins, and ensuring sustainable cash
flow generation
• • Achieve Obuasi ramp up target; move to steady state operations;
progress Phase 3
• • Continue reinvestments across the portfolio – continue to grow
Ore Reserve, net of depletion
• • Embed Operating Model redesign
• • Initiation of the Full Asset Potential Review to complete detailed
analysis of each asset, including mine design and key operating
parameters, to understand the reasons for the gap between
current and best possible performance
Achieving these milestones will position the Company favourably
to achieve its longer-term goals, thereby underpinning an industry
competitive return to shareholders.
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. Our strong balance sheet, robust financial systems
and strong internal control environment enable proactive risk
management and well informed business decisions. This bears
testimony to the calibre of our financial team. During the first eight
months of the past financial year, I filled the interim CEO role while
the Company searched for a full-time CEO. The finance function
continued to run smoothly during this period under Ian Kramer, the
interim CFO, to whom I am very grateful.
In February 2022, I took the difficult decision to take early
retirement from my role as CFO of the Company at the end of
June 2022, in order to spend more time with my family in the near
term. For the remainder of my tenure, I will continue to focus on
delivering on the Company’s strategic priorities and supporting
Alberto, our CEO, with the implementation of the new Operating
Model and the Full Asset Potential Review initiative. I wish my
successor, yet to be appointed, all of the best in this role.
Christine Ramon
Chief Financial Officer
29 March 2022
Three-year summaries
Summarised group financial results – income statement
US dollar million
Continuing operations
2021
2020
2019
1
1
2
Revenue from product sales
4,029
4,427
3,525
Cost of sales
(2,857)
(2,699)
(2,626)
(Loss) gain on non-hedge derivatives and other
commodity contracts
Gross profit
Corporate administration, marketing and related
expenses
3
Exploration and evaluation costs
Impairment, derecognition of assets and profit / loss on
disposal
4
Other expenses
Operating profit
Interest income
Dividends received
Foreign exchange and fair value adjustments
–
(19)
5
1,172
1,709
904
(73)
(68)
(82)
(164)
(124)
(112)
11
(136)
(1)
(57)
(6)
(83)
810
1 459
621
58
–
(43)
27
2
–
14
–
(12)
5
Finance costs and unwinding of obligations
(116)
(177)
(172)
Share of associates and joint ventures' profit
Profit before taxation
6
Taxation
249
278
958
1,589
168
619
(312)
(625)
(250)
Profit for the year from continuing operations
646
964
369
Discontinued operations
Profit (loss) from discontinued operations
–
7
(376)
Profit (loss) for the year
646
971
(7)
Allocated as follows:
Equity shareholders
- Continuing operations
- Discontinued operations
Non-controlling interests
- Continuing operations
622
–
24
646
946
7
18
971
364
(376)
5
(7)
2
3
4
Revenue decreased by 9% from 2020
resulting from 257koz less gold sold. The
impact of lower gold sold was partially
negated by a higher price received of
$18/oz ($1,796/oz in 2021 vs. $1,778/
oz in 2020) as well as higher silver and
hydrochloric acid revenue.
Cost of sales increased by 6% from 2020
primarily due to a 15% increase in cash
operating costs ($279m), partly offset by
a 10% decrease in royalties paid ($19m)
and a 16% decrease in amortisation
($93m). The increase in cash operating
costs reflects the impact of inflationary
and other cost pressures, and includes
the impacts of the COVID-19 pandemic.
Increases were experienced due to higher
labour and contractor costs, fuel and
power costs, consumable stores, and
higher services and other charges, while
unfavourable ore stockpile movements
and consumable inventory write-offs
further contributed to increased costs.
Exploration and evaluation costs
increased by $40m (32%) mainly due to
pre-feasibility studies in North America
($20m), as well as brownfield exploration
($8m) and greenfield exploration ($4m)
undertaken across the portfolio.
Other expenses increased by $79m
(139%) to $136m and mainly include care
and maintenance activities at Obuasi
following the voluntary suspension of
underground mining operations in May
2021 ($45m), the premium paid on the
early bond settlement ($24m), other
indirect taxes ($18m), retrenchment costs
incurred following the rollout of the new
Operating Model ($18m), government
fiscal claims ($7m), cost of old tailings
operations ($9m) and legal fees and
project costs ($10m).
Finance costs and unwinding of obligations decreased by $61m (34%) mainly
as a result of decreases in the discount on long term receivables at Geita ($34m)
and interest on bank loans ($19m). In addition, amortisation fees on borrowing
facilities in prior years of $17m did not recur.
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The taxation expense of $312m in 2021 decreased by 50% ($313m) compared to 2020. The decrease in taxation was mainly due to
lower current tax in Ghana, Australia, Argentina and Tanzania (due to lower revenue) and deferred tax assets impaired in 2020 relating
to the discontinued South African operations not recurring in 2021.
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AngloGold Ashanti Limited 2021AngloGold Ashanti Limited 2021
FINANCIAL REVIEW continued
Summarised group financial results – statement of financial position
Summarised group financial results – statement of cash flows
1
Movements in working capital:
US dollar million
Assets
2021
2020
2019
1
Tangible, right of use and intangible assets
3,757
3,157
2,873
1
2
3
Investments
Inventories
Cash and cash equivalents
Assets held for sale
Other assets
Total assets
Equity and liabilities
Total equity
4
Borrowings and lease liabilities
Provisions
Deferred taxation
Liabilities held for sale
Other liabilities
1,764
1,839
1,667
730
802
1,154
1,330
-
-
562
544
725
456
601
541
7,967
7,672
6,863
4,061
3,740
2,676
2,094
2,084
2,204
806
313
-
814
246
-
693
788
797
241
272
673
Total equity and liabilities
7,967
7,672
6,863
4
Borrowings and lease liabilities increased by $10m and together with the cash
balance, IFRS16 and other adjustments resulted in adjusted net debt of $765m at
31 December 2021, up from $597m at 31 December 2020.
During 2021, the Company concluded a 7-year $750m bond offering, priced at a
record low coupon of 3.375% per annum, with the net proceeds directed at early
redemption of the $750m, 5.125% per annum notes due 2022.
The balance sheet remains robust, with strong liquidity comprising the $1.4bn
multi-currency Revolving Credit Facility (RCF) of which $1.367bn was undrawn, the
$150m Geita RCF of which $40m is undrawn, the $65m Siguiri RCF of which $30m
was undrawn, the South African R150m ($10m) RMB corporate overnight facility
which is undrawn, and cash and cash equivalents of approximately $1.15bn at
31 December 2021.
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2
3
Tangible, right of use and intangible
assets increased by $600m from
2020 mainly due to project capital
expenditure of $311m and sustaining
capital expenditure of $717m incurred
in 2021. Additions to leased assets
was $102m in 2021 (mainly sustaining
capital). In addition, $14m of finance cost
was capitalised as part of the Obuasi
redevelopment project. The increase
was partly offset due to a decrease in
foreign currency translations of $48m.
Amortisation charges amounted to
$483m in 2021.
Investments which include investments
in associates, joint ventures and other
investments, decreased by $75m from
$1,839m in 2020 to $1,764m in 2021
largely due to a decrease in the fair value
adjustment to PureGold Mining ($91m),
partly offset by an increase in the fair
value adjustment to Corvus ($21m).
Cash and cash equivalents decreased by
$176m from 2020. Cash outflows relate
mainly to net taxation paid ($316m),
capital expenditure ($1,027m), dividends
paid ($240m), finance costs ($120m)
and net repayment of borrowings and
lease liabilities ($61m). Cash inflows
relate to cash generated from operations
($1,353m), dividends from joint ventures
($231m) and interest received ($58m).
US dollar million
Decrease (increase)
in inventories
Increase in trade,
other receivables
and other assets
Increase in trade,
other payables and
provisions
2021
2020
2019
58
(83)
(67)
(49) (163) (138)
44
8
40
53 (238) (165)
Inventory decreased as a result of ore
stockpile depletions across the operations
as well as a reduction in consumable
inventory and goods-in-transit following
a build-up to compensate for COVID-19
restrictions in 2020.
The increase in trade, other receivables
and other assets is mainly due to the
delay in recovery of reimbursable indirect
taxes and duties in Tanzania, Ghana and
Argentina.
Trade, other payables and provisions
increased mainly due to an increase in
capital accruals at Guinea resulting from
the mobilisation of contractors to access
ore in Block 2 of the lease property.
2
Capital expenditure increased by $326m
during 2021 due to the continuing focus
on the reinvestment programme.
This included growth capital expenditure
of $311m relating to Obuasi, Siguiri,
Geita, Tropicana, Sunrise Dam,
Quebradona and Gramalote in 2021,
compared to $260m invested in growth
projects in 2020 (mainly Obuasi,
Tropicana and Quebradona). Sustaining
capital expenditure was 61% higher in
2021 at $717m, compared with $445m in
2020, including $137m for the Brazil TSF
conversion to meet the requirements of
new legislation in Brazil.
US dollar million
2021
2020
2019
Cash flows from operating activities
1
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
1,353
1,828
1,102
231
(316)
148
(431)
1,268
–
1,545
109
77
(221)
958
89
Net cash inflow from operating activities
1,268
1,654
1,047
Cash flows from investing activities
2
Capital expenditure
Net proceeds (payments) from acquisition and disposal of
subsidiaries, associates and joint ventures
Net proceeds from disposal and acquisition of
investments, associate loans, and acquisition and disposal
of tangible assets
Interest received
Increase (decrease) in cash restricted for use
Other
Net cash outflow from financing activities
from continuing operations
Net cash outflows from discontinued operations
Cash in subsidiaries sold and transferred to held for sale
Net cash outflows from investing activities
Cash flows from financing activities
Net (repayments) proceeds from borrowings
and lease liabilities
Finance costs and lease finance costs paid
Dividends paid
Other
(1,027)
(701)
(703)
2
28
(5)
5
58
14
8
(940)
–
–
(940)
(61)
(120)
(240)
(35)
215
27
(9)
(8)
(448)
(31)
3
(476)
(131)
(118)
(47)
(33)
17
14
–
(6)
(683)
(54)
(6)
(743)
3
(137)
(43)
–
Net cash outflow from financing activities
(456)
(329)
(177)
3
Net (decrease) increase in cash and cash equivalents
Translation
Cash and cash equivalents at beginning of year
(128)
(48)
1,330
849
25
456
Cash and cash equivalents at end of year
1,154
1,330
127
–
329
456
3
Free cash flow reconciliation (1):
US dollar million
2021
2020
2019
Net cash inflow from operating activities
1,268
1,654
1,047
Net cash outflow from investing activities
Finance costs
Other borrowing costs
Repayment of lease liabilities
Movement in restricted cash
Acquisitions, disposals and other
Proceeds from sale of assets
Cash in subsidiaries disposed and transferred to
held for sale
Free cash flow
(940)
(110)
(35)
(63)
(14)
–
(2)
–
104
(1) Includes continuing and discontinued operations for the comparative periods
(743)
(143)
–
(42)
–
2
–
6
127
(476)
(138)
(33)
(47)
9
3
(226)
(3)
743
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AngloGold Ashanti Limited 2021AngloGold Ashanti Limited 2021 ECONOMIC VALUE-ADDED STATEMENT
How we create and share value
Economic value generated (1)
US dollar million
Gold sales and by-product income (2)
Interest received
Royalties received
Profit from sale of assets
Income from investments
Other income
%
92
1
–
1
6
–
2021
4,029
58
2
22
249
–
%
94
1
–
–
5
–
2020
4,836
30
–
2
261
5
Total economic value generated
100
4,360
100
5,134
(1) This economic value-added statement includes the South African operations until the date of sale
(2) Gold sales decreased by 10% due to lower gold production in 2021 compared to 2020.
Economic value distributed 2021
1%
11%
15%
19%
%
54%
(cid:31) Suppliers and services (cid:31) Government (cid:31) Employees
(cid:31) Providers of capital (cid:31) Communities
Value distributed
(2020: 68%)78%
Value retained
(2020:32%)22%
Total value distributed
$3.39bn
(2020: $3.47bn)
Economic value distributed (1) (7)
US dollar million
Providers of capital
Finance costs and unwinding of obligations
Dividends
Employees (2)
Government
Current tax (3)
Royalties (4)
Employee taxes (4)
Production, property and other taxes (4)
2021
2020
Contributing to the SDGs
364
140
224
221
183
38
515
508
656
248
149
167
92
1,055
562
175
209
109
Community (5)
15
22
Suppliers and services (6)
1,836
1,664
Total economic value distributed
3,386
3,470
(1) Economic distribution providing human, financial, social, natural and manufactured capital, guided by business objectives and key 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
(2) Payments to employees include salaries, wages and other benefits
(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 are reported on a cash basis and exclude equity-accounted joint ventures
(5) Community and social investments exclude expenditure by equity-accounted joint ventures
(6) Suppliers and services excludes capital expenditure
(7) This economic value-added statement includes the South African operations until the date of sale
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(US dollar million)
Africa
Americas
Australia
Other
Total
(1) Includes the South African operations until the date of sale
2021
147
108
(3)
(4)
248
2020 (1)
300
186
71
5
562
100
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AngloGold Ashanti Limited 2021AngloGold Ashanti Limited 2021
VALUE BY STAKEHOLDER
INVESTORS AND SHAREHOLDERS
Access to financial capital enables us to sustain and grow our business. Shareholders are the principal providers of
capital. In delivering long-term value, we earn their support and ensure sustained access to capital.
EMPLOYEES
Our employees, their skills, knowledge and experience, are critical to the conduct of our business activities. A skilled,
engaged, safe and healthy workforce is essential to delivering on our strategy and the creation of value.
We create, preserve and grow
value by:
• • Delivering on our strategic
objectives, plans and growth
projects, which helps improve
our returns, and also our
share price and market
capitalisation
• • Maintaining prudent financial
management and tight
cost control contributes to
sustained profitability
• • Maintaining disciplined and
efficient capital allocation to
ensure the desired returns on
equity, capital and assets
• • Returning surplus funds to
shareholders in the form
of dividends and, in certain
circumstances, share
buybacks
• • Ensuring best possible credit
rating profile in order to
ensure the lowest possible
cost of debt
• • Enhancing our ESG
performance
Value created, preserved and grown – 2021
Contributing to the SDGs:
We create, preserve and grow
value by:
Value created, preserved and grown – 2021
Contributing to the SDGs:
For AngloGold Ashanti:
• • Improved tenor of debt profile
by issuing a new seven-year
$750m bond, at a coupon
of 3.375% p.a. and using
the proceeds to redeem a
5.125% p.a. bond of the same
principal, due in 2022
• • Maintained investment grade
ratings with Moody’s Investor
Services and Fitch; S&P
continues to rate AngloGold
Ashanti at BB+, which is one
notch below investment grade
• • Included in ESG indices
– S&P Global Corporate
Sustainability Assessment,
Responsible Mining Index,
FTSE4Good and Bloomberg
Gender-Equality Index
• • Achieved an improved rating
in the MSCI ESG index, to BB,
from B previously
For investors and shareholders:
• • Dividend of 20 US cents per
share for the year declared –
total dividend of $85m
• • Share price declined by 7.3%,
relative to the benchmark
Market Vectors Gold Miners
Exchange Traded Fund, which
fell by 11%
• • The relative and absolute
TSRs are based on a three-
year trailing average using the
average share price achieved
in 2018 as the base ($9.38 a
share) and comparing it to the
average share price achieved
in 2021. The share price
has increased by 124.25%
over this period, including
dividends paid of $0.72/share
from January 2019 until the
end of December 2021
• • Absolute TSR growth
substantially exceeded the
stretch target set, while the
relative TSR performance is
compared to a comparator
peer group. The median TSR
of the comparator peer group
was 70.50% at 31 December
2021
• • Providing employment and
job opportunities
For employees:
• • On average, 30,561 people
For AngloGold Ashanti:
• • Stable, motivated and
• • Paying fair, market-related
salaries and benefits,
including healthcare
• • Providing skills development
and training
• • Having in place incentive
schemes to reward
performance excellence
• • Promoting diversity and
inclusion
• • Facilitating access to
medical aid and healthcare
programmes (malaria and
mental health, among others)
• • Implementing a new
Operating Model which
contributed to a loss of
employment
employed (including
contractors), with $515m
(1) paid in paid in employee
benefits, excluding skills
development, to give an
average annual payment per
employee of $16,622 (2020:
36,952, $508m and $13,450
respectively)
• • $7.11m spent on skills
development (2020: $10.76m)
• • Promoted and facilitated
COVID-19 vaccination
campaigns where practical
• • 12.3% (2) of workforce is
female (2020: 12.6%)
(1) Payments to employees include
salaries, wages and other benefits
(2) Employees on payroll
empowered workforce,
working together to deliver on
the strategic goals
• • Attraction and retention of
those skills necessary to the
safe, efficient delivery on
our strategy and enhanced
productivity
• • Introduction of a new
Operating Model and related
organisational restructuring
led to a reduction of 215
functional support roles.
The impact of this reduction
was mitigated by the use of
voluntary severance packages
to affected employees
SUPPLIERS
Suppliers provide inputs – raw materials, products and services – essential to the conduct of our business and its
activities. We aim to ensure suppliers are aligned with business ethics and values, internal policies and standards,
and codes of behaviour. A significant constructive engagement with suppliers facilitates cost management and control.
We create, preserve and grow
value by:
Value created, preserved and grown – 2021
Contributing to the SDGs:
• • Delivering on our strategic
objectives and growth
projects, we provide a reliable,
steady market for suppliers
For suppliers:
• • $2.61bn spent on the total
procurement of goods and
services (2020: $2.58bn)
• • Contributing to and
• • Local preferential
stimulating local economic
activity through our
procurement expenditure,
especially that portion spent
locally
procurement, including, in-
country capital expenditure,
of $2.4bn * or 93% of total
procurement (2020: $2.1bn
and 82% respectively)
• • Ensuring our procurement
practices are aligned to best
practice and do not enable the
exploitation of people along
the value chain
* This amount includes capital
expenditure in-country
For AngloGold Ashanti:
• • A well-established, reliable,
cost-efficient supplier data
base aided delivery on our
strategy and in particular our
aim to optimise overhead,
costs and capital expenditure
• • Strong relationships with
suppliers help ensure
business continuity during
disruptions to global supply
chains, such as those
currently being experienced
• • Published inaugural Modern
Slavery Statement
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AngloGold Ashanti Limited 2021AngloGold Ashanti Limited 2021
VALUE BY STAKEHOLDER continued
GOVERNMENTS
COMMUNITIES
Open, honest and respectful engagement with governments is important – such engagement relates to our licence to
operate, our right to mine and explore, all necessary permits and regulatory compliance, and infrastructural and socio-
economic partnerships.
Open, honest and respectful stakeholder engagement with communities supports our social licence to operate, promoting
mutual understanding of their and our needs and expectations. Engagement with and action undertaken in relation to communities
are underpinned by our values, particularly that communities should be better off for AngloGold Ashanti’s having been there.
Value created, preserved and grown – 2021
Contributing to the SDGs:
For governments:
For AngloGold Ashanti:
• • $489m paid in corporate
taxes, other taxes and
royalties in total (2020:
$846m)
• • $167m paid as personal
income tax on behalf of
employees (2020: $209m)
• • Strong, constructive
government relations:
• • facilitate partnerships,
ethical conduct and good
governance
• • help maintain permits and
ensure regulatory licences
to operate
• • assist in managing risk of
regulatory uncertainty
Collaboration on infrastructure
projects contributes to:
We create, preserve and grow
value by:
• • Partnering with governments
in our operations, yielding
benefits from earnings
generated
• • Contributing to the national
fiscus with the payment of
corporate taxes and royalties
due to government as well as
payment of personal income
tax on behalf of employees
• • Delivering on our obligations
as an ethical, responsible
corporate citizen
• • Collaborating to develop and
provide local infrastructure
(water reticulation,
educational facilities, among
others)
We create, preserve and grow
value by:
• • Delivering on our obligations
as an ethical, responsible
corporate citizen
• • Providing employment and
procurement opportunities
• • Focusing our community
investment on development of
local socio-economic projects
that are economically viable
and sustainable in the long
term that support resilient,
self-sustaining communities
and improved standard of
living – covers agriculture,
education and infrastructure,
among others
• • Conducting community
healthcare initiatives such as
the malaria programme in
Africa and COVID-19 initiatives
across our business
Value created, preserved and grown – 2021
Contributing to the SDGs:
For communities:
For AngloGold Ashanti:
• • $18.1m (1) invested in
• • Strong, constructive
community socio-economic
development projects (2020:
$20.6m (2))
community relations support
our social licence to operate
• • Mutually beneficial relations
enable us to better understand
and manage stakeholder
needs and expectations
guides socio-economic
project delivery
• • Reduced incidence of
operational disruptions as a
result of community protests
Our socio-economic
community projects contribute
indirectly to:
• • Major focus of such projects
is at host communities in and
around our Africa operations
• • Employment and procurement
opportunities
• • Local procurement spend of
$2.4bn (2020: $2.1bn)
• • We prioritise the employment
of people from our local
communities and host
countries at our operations
(1) Excludes joint ventures
(2) Excludes joint ventures and
includes South African operations to
date of sale
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AngloGold Ashanti Limited 2021AngloGold Ashanti Limited 2021
VALUE BY STAKEHOLDER continued
ENVIRONMENT
Mining is environmentally disruptive. Our business depends on access to economically viable gold deposits (land).
Many of our activities impact land, air, water, biodiversity and host communities with whom we share these natural
resources. Our environmental management programme aims to mitigate damage caused by land disturbance, to
protect biodiversity and to ensure the responsible consumption of natural resources and management of waste.
We create, preserve and grow
value by:
Delivering on our environmental
obligations as a responsible
corporate citizen – we aim to
minimise our environmental
impacts and help restore
natural capital and preserve
environmental value
Complying with relevant
regulations and committing
to various standards
(ISO standards, Cyanide
Management Code, ICMM
Principals)
Having in place systems, plans
and procedures to mitigate
instances where we have
eroded environmental value
Value created, preserved and grown – 2021
Contributing to the SDGs:
For the environment:
For AngloGold Ashanti:
• • 5 reportable environmental
incidents (2020: 8) – action
taken to address and
mitigate effects
• • 3,643ha of land rehabilitated
• • Improved environmental and
ESG performance supported
responsible investment in our
equity and our valuation in the
long term
• • Reduced environmental
impact and GHG footprint,
in line with ICMM mining
principles and our UNGC
commitments
by end 2021 – total
rehabilitation liabilities of
$688m (2020: 5,243ha;
$674m respectively)
• • 639,709ha under
management of which 806ha
was newly disturbed and
177ha rehabilitated at the
end of 2021
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AngloGold Ashanti Limited 2021
REWARDING DELIVERY
REMUNERATION
report
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Section 1: Remuneration and Human Resources Committee: Chairperson’s letterSection 2: Overview of the remuneration policySection 3: Remuneration implementation report–January to December 2021AngloGold Ashanti Limited 2021 SECTION 1: REMUNERATION AND
HUMAN RESOURCES COMMITTEE
Ensuring fair,
responsible
and transparent
remuneration
Maria Richter / Chairperson: Remuneration and Human Resources Committee
CHAIRPERSON’S
LETTER
Dear Shareholders,
I am pleased to present the AngloGold Ashanti remuneration
report for the year ended 31 December 2021. In it, I provide an
overview of our remuneration and human resource practices
and their alignment with the Company’s strategic objectives.
The Remuneration and Human Resources Committee
(the committee) aims to ensure that the remuneration policy
and its implementation play a key role directing the efforts and
behaviours of employees and leaders to in turn ensure the safe
and sustainable creation of value for stakeholders over the
long term.
The principle of fair and responsible pay continues to guide
our decision making, with particular emphasis on recognising
the contribution of all AngloGold Ashanti employees. We had
previously committed to review the Company’s remuneration
policy and did so with input and advice from our remuneration
advisor to ensure that it reflects our pay philosophy and the
current realities of our business and industry. I believe our
remuneration policy achieved its intended objectives during an
especially challenging period, however, the committee exercised
its judgement to adjust certain Deferred Share Plan (DSP)
performance achievement results downwards.
Several important considerations informed decisions taken by
the committee this year, including financial and non-financial
performance in both relative and absolute terms; competition
in the market for scarce skills; the views and expectations of
stakeholders; our broad suite of environmental, social and
governance (ESG) objectives; and the impact of COVID-19.
The committee decided that no annual salary increases would
be awarded to executives (with one exception) or to senior
management for 2022, given the organisational restructuring
undertaken at the end of 2021 and the need to closely
manage costs. In light of this decision, the non-executive directors
(NEDs) will not be receiving a fee increase for 2022 to align
themselves with the executives and senior management teams.
The Company continued to work with employees and other
stakeholders to lend assistance in dealing with the ongoing
impact of the pandemic, including aiding vaccine access and
other medical and social support where needed. We believe
approximately 85% of the workforce was fully vaccinated
(excluding boosters) by the end of 2021. Vaccine mandates are
now in place at our corporate offices in Johannesburg, Denver
and Perth. As the second year of the pandemic draws to a
close, no employee has seen their remuneration affected by the
pandemic, and no government COVID-19 grants were requested
or received to support the business.
Another key initiative was a culture and values survey which
covered the global business. The response was strong, with
almost 11,000 employees responding. The survey’s findings will
allow us to evolve the business, our culture and values in line
with views expressed by our employees.
Disclosure and transparency
The committee has fulfilled the requirements of its terms of
reference. While we have focused on ensuring that our reporting is
clear and transparent, we continue to look for further improvement
in this regard.
Notwithstanding the positive results of our non-binding advisory
votes for our remuneration policy and implementation reports
for 2020, we continued our engagement with a number of
shareholders who provided constructive feedback in respect of
both our policy and its implementation.
Actions from shareholder engagement
We maintained our dialogue with shareholders in respect of
remuneration practices, listening to concerns and suggestions
for alignment with evolving best practice. As a result of the
engagements during 2021, we took the following actions:
• • Extended the Minimum Shareholding Requirement (MSR) for all
executives to apply one-year post termination
• • Introduced an MSR for NEDs in order to strengthen alignment
between the interests of NEDs and those of AngloGold Ashanti
shareholders and to reflect best practice in the gold mining sector
• • Reviewed the appropriateness of the DSP
In addition, we considered further best practice initiatives and
made the following changes:
• • Reviewed, updated and approved various policies in important
matters, such as: Diversity and Inclusion Policy; Policy and
Procedure for Dealing with Poor Conduct; Grievance Policy;
Acting Allowance Policy; AngloGold Ashanti Standards of
Conduct; and Anti-Discrimination and Sexual Harassment Policy
• • Updated the malus and clawback clauses in the
Remuneration Policy
These policies are available on our corporate website,
www.anglogoldashanti.com.
The remuneration policy and implementation report for reporting
period 2020 were tabled for two separate, non-binding advisory
votes at the Annual General Meeting (AGM) held on 4 May
2021, in line with the JSE Listings Requirements and King IV
recommendations.
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The table below furthermore details the results of shareholder
voting at the 2020 and 2019 AGMs.
Votes
Remuneration policy
4 May 2021
10 June 2020
9 May 2019
Remuneration implementation report
4 May 2021
10 June 2020
9 May 2019
86.34
87.52
58.51
For
Against Withheld
95.30
88.04
98.31
4.7
11.96
1.69
13.66
12.48
41.49
0.22
0.35
0.40
0.22
0.35
0.40
Operational context and performance
The gold sector continued to grapple with the direct and second-
order impact of the COVID-19 pandemic, increased stakeholder
expectations, a paucity of skilled personnel in some jurisdictions,
increasing pressure to address the effects of climate change,
accelerating inflation across more categories of inputs, and
challenges in replacing the depleted Ore Reserve. Delivering on
market commitments safely and consistently, while navigating
those challenges, remains the key objective of the business.
The year was marked by significant operational difficulties – see
CEO’s review and outlook and Regional performance – notably
due to the suspension of underground mining at Obuasi in May,
following the tragic underground death of a contractor after a
sill-pillar failure. The significant effect of this halt to production,
which lasted from May through to the end of December 2021,
was compounded by further production losses spread across
the remainder of our sites. These production shortfalls, the
consequent impact on operating costs and accelerating inflation
across many categories of inputs, were the principal factors
leading to the revision of the cost and production outlook during
the year, snapping a seven-year streak of meeting guidance.
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SECTION 1: REMUNERATION AND HUMAN RESOURCES COMMITTEE:
CHAIRPERSON’S LETTER
continued
There were positives; our exploration geologists replaced our
depleted Ore Reserve for the second consecutive year – see
Mineral Resource and Ore Reserve – summary in this report and
the – a vitally important achievement in a sector struggling
to replenish mineral inventories. More ounces were upgraded
to the Proved and Probable Ore Reserve, a clear sign that our
reinvestment strategy – aimed at increasing orebody confidence,
mine lives and operating flexibility – is gaining traction. The
business generated free cash flow of $104m for the year. Despite
the free cash flow generated for 2021, which was modest in
the current gold price environment, the committee applied a
downward adjustment from stretch to target on the 2021 DSP
nCroe annual performance achievement to further recognise the
operational challenges experienced in the current year.
Our absolute greenhouse gas emissions fell markedly – down 69%
since 2007, the baseline year used when we first set our emissions
intensity targets – as we saw the cumulative benefit of asset
closures, sales and efficiency gains, including not having the large
Scope 2 GHG emissions from our South Africa portfolio, the last
of which was sold in 2020. The board approved the Company’s
Climate Change Strategy in November 2021, creating a clear
pathway to manage the risks and opportunities a changing climate
brings, and we published an inaugural Climate Change Report,
aligned with the recommendations of the Task Force on Climate-
related Financial Disclosures – see .
While our all injury frequency rate of 2.14 per million hours worked
was well below the average of our peers in the International
Council on Mining and Metals, the achievement was marred
by two workplace deaths – the first at Serra Grande in Brazil,
in February 2021, and the second at Obuasi in Ghana, in May
2021 – see We honour and remember in the . Our heartfelt
condolences go to the family and loved ones of those who passed
away, along with the assurance that lessons learned have been
applied to those and other sites in the portfolio to avoid a repeat.
The committee applied a downward adjustment on the 2021
DSP safety annual performance achievement as a result of these
fatalities. In addition, a revised safety strategy is being rolled out
across the business to take us closer to our goal of zero harm in
the workplace.
The overall DSP annual performance achievement result was
70.73% post the downward adjustments of 7.5% for nCROE
and 4% for safety. This is compared to the 2020 DSP annual
performance achievement of 116.57%.
Operating model
To improve the quality and consistency of AngloGold Ashanti’s
operating performance, the executive team designed and began
implementing a new Operating Model, and organisational
structure. This change to the business, spearheaded by new
CEO Alberto Calderon and supported by the board and executive
management team, brings cost efficiencies and greater clarity to
the organisation with respect to how and what work is done and
single point of accountability. This, therefore, required a reduction
in roles – mainly at the mid- and senior- management levels
– across the portfolio and will ultimately improve operational
outcomes. For more on the Operating Model, see the CEO’s review
and outlook and human capital in the Business model.
The committee, supported by the human resources team,
maintained its focus on gender equality, employment equity and
skills retention through this process. See People, safety health and
sustainability.
Leadership changes
Alberto Calderon, formerly CEO of Melbourne-based Orica, was
appointed CEO on 1 September 2021, after an extensive global
search. Immediately after joining, Alberto initiated a full review of
AngloGold Ashanti’s Operating Model.
The leadership team saw several changes during the year as the
executive team received an infusion of external experience.
With the appointment of the new CEO, Christine Ramon, who had
led the Company as Interim CEO for the year to the end of August
2021, returned to her role as CFO. In February, it was announced
that Christine had opted to take early retirement in order to spend
more time with her family. She leaves a significant legacy after
her more than seven years with the Company and her work in
protecting a tradition of disciplined capital allocation, is evidenced
by our strong balance sheet. She will begin early retirement in
June 2022 with her last day of employment being 31 December
2022. We extend our deep gratitude to Christine and wish her well
in her future endeavours.
Ian Kramer, who was deputised as Interim CFO, returned to
his role as Senior Vice President: Group Finance; and Vaughan
Chamberlain, Senior Vice President: Exploration, was appointed
Interim Chief Development Officer on 1 October 2021, a position
he will hold until 1 April 2022. Terry Briggs, formerly Vice President
Planning at Newmont Corporation, has been appointed Chief
Development Officer, effective from 1 April 2022.
Our thanks go to Christine, Ian and Vaughan for stepping into
these important roles during the year and stewarding the
Company through its transition.
Graham Ehm, a 33-year veteran of the Company, retired as
Executive Vice President: Planning and Technical Development,
and Sicelo Ntuli, COO: Africa, separated from the Company due to
the reconfigured Operating Model, effective 31 December 2021,
after 22 years with AngloGold Ashanti. We give both our sincere
thanks for their enormous contributions over their careers with
AngloGold Ashanti and best wishes for their future endeavours.
Graham was replaced on 15 October 2021 by Marcelo Godoy,
formerly Senior Vice President of Exploration at Newmont
Corporation. Ludwig Eybers, COO: International since 2019, has
resumed his role as COO for the entire portfolio.
Lisa Ali, formerly the executive in charge of Human Resources and
Sustainability at Newcrest, has been appointed as Chief People
Officer, effective from 1 April 2022. Lisa replaces Italia Boninelli, an
experienced former executive of AngloGold Ashanti, who has ably
and successfully filled the role since 1 April 2021.
The single total figure reporting on pages 128 to 129 provides the
remuneration details aligned to the shareholder approved standard
conditions of employment.
Areas of achievement for 2021 and focus for 2022 are:
2021
2022
Enhancement of remuneration
policy by tightening recruitment
eligibility criteria for awards
granted in lieu of forfeiture
Focus on results and action
plan of our organisational
culture and values survey
outcomes particularly in
relation to gender and diversity
Enhancement of the malus and
clawback provisions
Continued focus on equality of
gender remuneration
Increased MSR for members of
the Executive Committee and
introduction of MSR for NEDs
Enhanced performance
management review process
Focus on health and well-being
of our employees particularly in
light of the COVID-19 pandemic
Continued engagement with
shareholders
Continued focus on succession
planning, talent management
and development
Continued focus on employee
health and well-being
Review and refresh of
Company policies to ensure
that they remain current and
relevant
Ensuring training on all key
human resource policies at
all levels of the organisation
including the board
Continued focus on succession
planning and development
Further review of the DSP
scheme, to ensure global best
practice and continued close
alignment with shareholders’
interests
Thanks
Lastly, our thanks to PwC, who provided invaluable advice as our
remuneration adviser over several years. With PwC now being
appointed as our new external auditor, we have commenced
a tender process to identify new independent remuneration
advisers ahead of the AGM in May 2022.
I would like to thank Maria Ramos for her steadfast leadership
and expert direction in her first year as Chairperson of the board.
The support and guidance she has provided to the committee and
myself personally has been invaluable. I would also like to thank
my colleagues on the committee for their tireless commitment to
ensuring fairness, equity and transparency in our remuneration
practices. With the executive changes, the committee met more
frequently, and I am thankful for their engagement and support
over this time of transition in the Company.
My gratitude also goes to our management team for resilience
in a year marked by a host of challenges. I extend my sincerest
thanks especially to Italia Boninelli, as executive sponsor to the
committee, for lending her decades of experience to our efforts.
Our work in the year ahead will remain focused on ensuring
that our overall human resource strategy, practices and policies
are closely aligned with the needs of the business and the
requirements of our shareholders.
Continued implementation of
diversity framework
Enhancing our relationships
with our shareholders
Sincerely,
Maria Richter
Chairperson: Remuneration and Human Resources Committee
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SECTION 2: OVERVIEW OF THE REMUNERATION POLICY
The AngloGold Ashanti strategic values and objectives are
key when defining our remuneration policy. When setting
the remuneration policy, the committee ensures that the key
principles that define the CEO remuneration are the same
as those that apply to the Executive Committee and all other
employees. In the same way, the performance measures
used to determine the variable pay outcomes for the CEO
and all other employees are linked to our strategic objectives
and focused on delivering on both internal and external
stakeholder priorities.
AngloGold Ashanti and the board are committed to good
governance and consistently engage with their stakeholders to
ensure that this level of governance is upheld and translated into
a framework that primarily aims to attract, motivate and retain
a skilled workforce through fair, responsible, transparent and
competitive remuneration.
Each year we focus on improving our remuneration approach
and 2021 was no different with a full review of our remuneration
and human resource policies to ensure that the practices and
principles continue to support the strategic values and objectives.
In 2021 we focused on the following policy issues which will be
detailed in the section below:
• • Further commitment to our key principles of remuneration
which remain unchanged
• • An update to the malus and clawback provisions
• • A review of the DSP and the metrics driving the incentive
calculations
• • An ongoing focus on fair and responsible remuneration and the
steps taken to ensure that we continue to address this
• • Further review of our objectives in terms of the MSR
Key principles of our remuneration policy
To support AngloGold Ashanti’s remuneration approach, the
remuneration policy is based on the following key principles:
• • Alignment with strategic objectives and shareholder interests
• • Remunerate to motivate and reward the right behaviour and
performance of employees and executives
• • Ensure that performance metrics are challenging, substantial
and cover all aspects of the business including both financial
and non-financial drivers and do not reward excessive risk
taking
• • Ensure that the remuneration of executive management is fair,
responsible and transparent in the context of overall employee
remuneration in the organisation
• • Promote an ethical culture and responsible corporate citizenship
• • 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
• • Apply the appropriate global remuneration benchmarks
• • Provide competitive rewards to attract, motivate and retain
highly skilled executives and staff vital to the success of the
organisation
• • The use of performance measures which support positive
outcomes across the economic, social and environmental
context in which AngloGold Ashanti operates
Remuneration design
When determining appropriate remuneration, the committee
considers:
Fair and responsible pay
Paying the right level of remuneration to both attract, recruit
and retain our employees
Our pay practices and policies in making pay decisions for
executive directors and executive management
Setting minimum performance thresholds and potential
maximum remuneration that executive managers could earn
in relation to their and the Company’s performance
External influences, primarily being:
Shareholders’ view
associated with executive
management team
remuneration
Economic
trends
Competitive
pressure
Benchmarks in markets
with similar attributes,
including complexity, size
and geographic spread
Remuneration practices are designed to be fair,
responsible, transparent and compliant
with applicable legislation.
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Fair and responsible pay
Fair and responsible pay are ethical values that AngloGold
Ashanti strives to uphold. AngloGold Ashanti aims to ensure
that the business meets short-term objectives while creating
shared and sustainable value over the long term, within
the economic, social and environmental context in which it
operates. The remuneration framework, aligned to King IV and
global best practice principles, emphasises the importance of
fair, responsible and transparent pay.
The policy, which necessarily evolves along with a dynamic
market and operating landscape, currently reflects the
principles of fair and responsible pay as follows:
We aim to apply a fair approach to remuneration by:
• • Taking an impartial view on pay
• • Doing away with pay differentials that cannot be explained
or justified
• • Ensuring that pay parity is achieved across groups and
eliminating discrimination
• • Identifying and addressing unfair practices
We remunerate responsibly by:
• • Enforcing the approved, appropriate delegation of authority
on all aspects of remuneration
• • Having independent remuneration consultants providing
advice and oversight
• • Using external market benchmarks
• • Ensuring that correct behaviours are rewarded and
inappropriate behaviour is discouraged
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SECTION 2: OVERVIEW OF THE REMUNERATION POLICY
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Fair pay
Variable pay
Responsible pay
• • Variable pay is directly correlated to the achievement of
• • Variable pay metrics are linked to the creation of value over a mix
measures linked to the Company scorecard
of short-, mid- and long-term periods
• • Equity is considered and implemented which ensures that
the long-term interests of shareholders are aligned with
those of executive directors and executive management
• • The metrics of our DSP incentive scheme are reviewed annually
and approved by the committee ensuring that the performance
targets remain relevant and appropriate
• • Metrics include both individual and Company performance
• • The approved metrics are reported in the annual report
measures and financial and non-financial drivers
Remuneration and pay differentials
• • Only pay differentials that can be explained and justified
are allowed
• • Strive to achieve pay parity across the groups and levels
within the organisation
• • All employees receive a minimum level of remuneration
that enables participation in the economy. To achieve this,
AngloGold Ashanti ensures that all employees are paid at
least 25% above the respective regional minimum wage,
and in most instances much higher than this
• • Strive to ensure that CEO and executive remuneration is
fair and responsible in the context of overall employee
remuneration
• • 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. Relevant
metrics are used to ensure that the income dispersion
between high- and low-income earners is not outside
market norms
Key internal stakeholders
• • The metrics are designed 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
• • Metrics include safety, environmental, social, governance and
people metrics (including gender and diversity)
• • The DSP contains triggers for both malus and clawback
• • All Executive Committee members are subject to a minimum
shareholding requirement and post-employment holding period
which will be effective 1 January 2022
• • 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
• • All executive management remuneration is subject to approval
by the committee
• • 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
• • Decisions on remuneration are scrutinised to ensure that
they are:
• • impartial and non-discriminatory
• • rational and objective
• • aligned with local legislation
• • Pay differentials are tracked using market norms and metrics to
measure income dispersion
• • Appropriate global remuneration benchmarks are used; Mercer
is used for executive and senior management teams and locally
available reputable surveys are used for middle-management
and below
• • Other board committees, which include the Audit and Risk,
Social, Ethics and Sustainability, Investment, and Nominations
committees, give input on remuneration matters including but
not limited to pay parity, DSP metrics and scarce skills initiatives
• • The Serious Concerns Committee, comprising members of
the Executive Committee supports remuneration governance
by reviewing ethical concerns which could have an impact on
remuneration
Wage differential
On an annual basis, PwC calculates the wage differential which is
the annual total compensation of the CEO against the median of
the annual total compensation of AngloGold Ashanti’s employees.
For 2021 the calculation was done using the acting CEO, Christine
Ramon’s total annualised compensation as she was in the role for
the majority of the year. The wage differential for the CEO’s total
reward was approximately 80 times the median of all employees
in AngloGold Ashanti, compared to 177 times in 2020. Additionally,
to provide a meaningful comparison in 2021, an annualised
wage differential using the target earnings for the new CEO was
conducted, resulting in a wage differential of 162 times.
Gender and pay equality
The board and management view diversity and inclusion, and
particularly gender diversity, as essential to the growth and
success of the Company. Underpinning gender diversity is
ensuring the organisation measures, achieves and maintains
gender pay parity. Globally, achieving gender pay parity is an
important step towards gender equality and empowerment
of women.
The Company’s aim remains to achieve a diverse and
inclusive workforce, aligned to the United Nations Sustainable
Development Goals, and the United Nations Global Compact,
which is essential to the growth and success of the Company.
The board of directors comprises 36% women. A third of the
executive management team are women.
Gender pay-gap differentials at middle management levels and
above reflect that men are paid 11.62% more than women. The
changes in and transition to a new Operating Model have had a
negative impact on the outcome of the calculation. This transition
phase has entailed:
• • Changes in the levels of roles
• • A reduction in the global staff complement
• • The downgrading of certain roles
• • Updated pay scales
Specific attention in embedding the final Operating Model is being
placed on addressing this disparity. The proportion of women
employees, particularly in senior roles, remains low, and is being
steadily addressed by a greater focus on attracting, developing
and retaining women in the technical disciplines. Furthermore,
metrics included in the incentive scheme are designed to improve
the gender ratio. We will continue to monitor pay differentials and
to take action as appropriate.
2021 remuneration policy and structure
The table below sets out the remuneration policy that applies to all employees for 2021 and was endorsed by shareholders at the 2020
annual general meeting. The table details each component’s link to the Company 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 is
provided to employees to
ensure that their experience,
contribution and appropriate
market comparisons are
fairly reflected and applied
Operation and objective
Maximum opportunity
Performance measures
• • Base salaries are reviewed annually and
increases are effective from 1 January
each year
• • Employees’ 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, may pay higher than the median
• • The CEO makes recommendations on the
executive management team but does
not make recommendations on the CEO’s
own base salary. This is reviewed by the
committee and approved by the board
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
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continued
Remuneration element and
link to strategy
Pension
Provides a defined
contribution retirement
benefit, in addition to
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
In addition to base
salary, benefits are
provided to ensure broad
competitiveness in the
respective markets
Operation and objective
Maximum opportunity
Performance measures
2021 DSP performance metrics
• • Funds vary depending on jurisdiction
and legislation
Funds vary depending on
jurisdiction and legislation
Not applicable
• • Defined benefit funds are not available
for new employees, in line with
Company policy
The pension contributions
for executive directors and
executive management
team are aligned to those of
employees across the Group
Provided to all employees through
either a percentage of fee contribution,
reimbursement or Company provided
healthcare providers
Aligned to approved policy
Not applicable
Financial measures – total weighting 62.5%
Future optionality –
total weighting 12.5%
Shareholder returns
Return on equity
Production
Costs
Future optionality
Absolute total
returns
Relative total
returns
10%
10%
Normalised cash
return on equity
(nCROE)
15%
All-in sustaining costs
Mineral
Resource
Ore
Reserve
15%
6.25%
6.25%
12.5%
Related strategic focus area:
Ensure financial
flexibility
Improve
portfolio quality
Optimise overhead, costs
and capital expenditure
Maintain long-term
optionality
People, safety, health, environment and community – total weighting 25%
Benefits are provided based on local market
trends and can include items such as life
assurance, disability and accidental death
insurance, assistance with tax filing, cash
in lieu of untaken leave (above legislated
minimum leave requirements), and
occasional spousal travel
Variable pay
The Deferred Share Plan (DSP) was implemented in 2018 as
a single incentive scheme comprising of short- and long-term
metrics. In 2021, the DSP was reviewed both internally and
benchmarked against external comparators to ensure that it
continues to support the business strategy, remains compliant
with corporate governance best practice and meets the goal
of aligning the executive goals with those of the shareholders.
Elements reviewed were:
• • The current structure of the incentive scheme
• • The effectiveness of both the short- and long-term measures
• • The metrics of the scheme with special consideration being
given to ESG measures
The committee concluded that the DSP continues to achieve its
strategic objectives and that the structure and the short- and long-
term design of metrics remain appropriate and continue to meet
both the executive and shareholder requirements. The metrics
were, however, adjusted to better reflect the organisation’s strategic
requirements by changing the weightings in line with the focus
of business requirements while the broader objectives remained
unchanged. Further changes to the metrics and their weightings
have been recommended for 2022. As the business develops, the
DSP metrics will be adjusted if necessary as we have done for 2022.
See .
Aligned to approved policy
Not applicable
People
Safety
Health
Environment
Community
5.5%
• • Gender diversity
• • Key talent retention
• • Succession bench
strength in talent for
Executive Committee
roles
8%
Combination of:
• • All injury frequency rate
• • Major hazard control
compliance
2.5%
• • Business
disruptions as a
result of community
unrest
6%
• • Number of reportable
environmental incidents
at operating mines
• • GHG emissions –
develop a carbon budget
for each operation based
on approved business
plans
3%
• • Cumulative number of
critical control registers
established for site-
specific, material health
risks (as captured
in AuRisk) at each
operation
• • Compliance with
occupational exposure
monitoring programmes
for noise and dust at
each operation
Related strategic focus area:
People, safety, health and sustainability
Total 2021 DSP metrics by category (100%)
2021 DSP metrics – weighting by category
25.0%
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s
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(cid:31) Financial measures (cid:31) Future optionailty
(cid:31) People, safety, health, environment and community
12.5%
62.5%
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SECTION 2: OVERVIEW OF THE REMUNERATION POLICY
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Deferred Share Plan
Endorsed by shareholders at the 2017 annual general meeting, and implemented with effect from 1 January 2018
The graphs below illustrate the threshold, on-target and stretch for the DSP scheme and performance measure weightings
(Company and individual) as a percentage of base salary:
Maximum
opportunity
Details of on-
target, threshold
and maximum
awards for
all staff are
shown in the
tables on page
119. 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.
Performance measures are
weighted between Company
and individual KPIs.
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.
Company metrics, each with
their own weighting, are:
• • Relative total shareholder
returns (TSR)*
• • Absolute total shareholder
returns*
• • Normalised cash return
on equity*
• • Production
• • All-in sustaining costs
• • Ore Reserve additions pre-
depletion
• • Mineral Resource additions
pre-depletion
• • Safety, Health, Environment
and Community
• • People
Remuneration element and
link to strategy
With effect from
1 January 2018, the
Company 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.
A single set of
performance objectives
is used, reviewed and
approved annually by
the committee, based
on the impact on the
Company’s performance.
Operation and objective
Permanent employees who do not participate in a
production bonus are eligible to participate in the DSP.
The DSP award is payable in cash and where applicable
(depending on stratum level), the balance will be delivered
in one of two compensation components, either deferred
cash or deferred shares, vesting equally over a period of
two to five years.
The total incentive is determined based on a combination
of Company and individual performance measures, which
are defined annually with weightings 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, Mineral
Resource and Ore Reserve, sustainability and people. 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.
At the end of each financial year, the performance of
the Company, the CEO and CFO is assessed by the
committee and the board against the defined metrics
to determine the quantum of the cash portion and the
quantum of the deferred portion as per calculations
below:
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 equally over either
a two-, three-, or five- year period, depending on the level of
the participant.
* These measures are on a trailing three-year backward-looking basis
Threshold
(50%)
On-target
(100%)
Stretch
(150%)
CEO (VII)
50.0%
100.0%
150.0%
CEO (VII)
100.0%
200.0%
300.0%
CEO (VII)
150.0%
300.0%
450.0%
CFO (VIH)
42.5%
92.5%
135.0%
CFO (VIH)
85.0%
185.0%
270.0%
CFO (VIH)
127.5%
277.5%
405.0%
Executive Mng (VIL)
37.5%
87.0%
124.5%
Executive Mng (VIL)
75.0%
174.0%
249.0%
Executive Mng (VIL)
112.5%
261.0%
373.5%
Senior Mng (IVH - V)
26.0% 39.0%
65.0%
Senior Mng (IVH - V)
52.0% 78.0%
130.0%
Senior Mng (IVH - V)
78.0% 117.0% 195.0%
Senior Mng (IVL)
24.0% 27.0% 51.0%
Senior Mng (IVL)
48.0% 54.0% 102.0%
Senior Mng (IVL)
72.0% 81.0% 153.0%
Middle Mng (IIIH)
16.5% 16.5% 33.0%
Middle Mng (IIIH)
33.0% 33.0% 66.0%
Middle Mng (IIIH)
49.5% 49.5% 99.0%
Middle Mng (IIIL - IIIM)
12.5% 12.5% 25.0%
Middle Mng (IIIL - IIIM)
25.0% 25.0% 50.0%
Middle Mng (IIIL - IIIM)
37.5% 37.5% 75.0%
0
30
60
90
120
150
0
50
100
150
200
250
300
0
100
200
300
400
500
Cash bonus award
Deferred cash award
Deferred shares award
Cash bonus award
Deferred cash award
Deferred shares award
Cash bonus award
Deferred cash award
Deferred shares award
Employee stratum and level
Deferral period (years)
Company
Individual
Performance measure weightings
CEO (VII) / CFO (VIH) /Executive management (VIL)
Senior management (IVH – V)
Senior management (IVL)
Middle management (III)
5
3
2
2
80
50
50
40
20
50
50
60
The deferred shares are awarded as conditional rights to shares with dividend equivalents. Vesting of the deferred portion occurs equally over
either a two, three, or five- year period, depending on the level of the participant.
Malus and clawback
The committee have reviewed the “malus” and “clawback”
provisions in 2021 in line with external benchmarks and the
committee’s expectations in the event that any of the following
matters is discovered. Below are the revised provisions:
Malus
The committee has discretion to reduce, including to zero, an
award that has not yet accrued or vested to an individual where
(but not limited to):
• • A participant was, in the reasonable opinion of the committee,
deliberately misleading the Company or any subsidiary, the
market and/or the Company’s shareholders concerning the
financial performance of the Company
• • A participant caused harm to the Company’s reputation
• • A participant’s actions amounted to misconduct, including but
not limited to the participant acting fraudulently, dishonestly or
being in material breach of their obligations, as described in the
Company’s Disciplinary Code and Procedure Policy
• • A participant’s actions amounted to negligence, incompetence
or poor performance
• • There is a material error in the Company’s financial statements,
which results in a restatement
• • There is a material downturn in the financial performance of the
Company at any time before the applicable vesting date
• • There is a material failure of risk management in the Company
• • The discovery that any information or the assessment of any
performance condition(s) used to determine an award based on
a material error, or inaccurate or misleading information, or
• • Any other matter which, in the reasonable opinion of the
committee, is required to be taken into account to comply with
prevailing legal and/or regulatory requirements, which for the
avoidance of doubt, includes the applicable laws published by a
regulator from time to time
Clawback
The committee will consider applying clawback at any time
during the three years from the date of vesting of the variable
remuneration, being the cash incentive, deferred cash or deferred
share allocation (the clawback period), based on the following
limited trigger events:
• • There is a material failure of risk management in the Company
or in the relevant Business Unit, considering the participant’s
involvement and responsibility for that incident
• • The discovery of action or conduct of a participant which in the
opinion of the committee amounts to gross misconduct that
occurred prior to award or vesting
• • There is a material error in the Company’s financial statements,
which results in a restatement, which may have resulted in an
over-allocation of cash incentive, deferred cash and deferred
share allocations
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AngloGold Ashanti Limited 2021AngloGold Ashanti Limited 2021 SECTION 2: OVERVIEW OF THE REMUNERATION POLICY
continued
• • The discovery of events that occurred prior to vesting that
have had a significant detrimental impact on the reputation
of the Company or the relevant business unit or have led to
the censure of the Company or a group Company by a
regulatory authority
• • Where there is an error in the calculation of any performance
condition which may have resulted in an overpayment
Performance management
Performance management at AngloGold Ashanti is a key
process where our management and employees work together
to plan, monitor and review an employee’s objectives and overall
contribution to the organisation. More than just an annual
performance review, performance management is the continuous
process of setting objectives, assessing progress and providing
on-going support, coaching and feedback to ensure that
employees are meeting their objectives and career goals – aligned
to the strategic business goals.
CEO
(Rm)
CEO
(% of total remuneration)
Below threshold
24
6
Below threshold
80
20
Threshold
24
6
12
24
Threshold
37
9
18
36
Target
24
6
24
48
Target
23
6
24
Maximum
24
6
36
72
Maximum
18
4
26
47
52
0
30
60
90
120
150
0
20
40
60
80
100
Base salary Benefits DSP cash DSP deferral
Base salary Benefits DSP cash DSP deferral
A performance management framework has been designed to
address the following business requirements:
CFO
(Rm)
CFO
(% of total remuneration)
Below threshold
10
3
Below threshold
77
23
Threshold
10
3
4
9
Threshold
38
11
16
35
Target
10
Maximum
10
3
3
13
28
40
9
19
Target
25
8
21
Maximum
19
6
23
46
52
• • Goal setting: creating line of sight between business goals and
0
10
20
30
50
60
0
20
40
60
80
100
individual goals
• • Performance conversations: consistent and continuous
conversations throughout the year
• • The rating scale: consistent measure of performance across
the business
• • Calibration: creates fairness to mitigate assessor’s bias
Base salary Benefits DSP cash DSP deferral
Base salary Benefits DSP cash DSP deferral
Executive Committee
(Rm)
Executive Committee
(% of total remuneration)
• • Performance Management Outcome Distribution Curve: aligns
Below threshold
business performance with people performance
Individual performance is as critical as Company performance
on both fixed and variable remuneration decisions. Where an
employee’s performance is below expectations they will not
receive an incentive bonus.
Threshold
Target
8
8
8
2
2
3
7
Below threshold
80
20
Threshold
40
10
16
34
2
2
6
14
Target
26
6
20
9
21
Maximum
20
5
23
48
52
Maximum
8
• • Defining and measuring a high-performance culture linked to
business requirements
• • Aligning KPIs to business strategy – the cascading of goals
• • Effective engagement and partnering by line managers, building
line manager capability
• • Integrated people processes – aligning talent management,
career development, reward and recognition to performance
outcomes
• • Providing a consistent performance management methodology
and practices:
Remuneration scenarios at different performance levels
The graphs alongside, typically depict the pay mix of the executive
management team in line with the 2021 remuneration policy
including DSP outcomes at threshold, target and maximum
performance. Below threshold performance will result in no
payout. The long-term incentive (DSP deferred shares) vests
annually in five equal tranches.
The pay mix graphs for the CEO and CFO depict actual base
salaries and benefits. Those for the Executive Committee are
based on averages.
0
5
10
15
20
25
30
35
40
0
20
40
60
80
100
Base salary Benefits DSP cash DSP deferral
Base salary Benefits DSP cash DSP deferral
120
121
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AngloGold Ashanti Limited 2021AngloGold Ashanti Limited 2021
SECTION 2: OVERVIEW OF THE 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 principles are applied when recruiting external hires:
• • Remuneration for external appointments will take into
account any remuneration which is forfeited from the previous
employment upon joining, and may replace these in an
appropriate form, taking into account timing and performance
conditions as appropriate subject to proof of forfeiture
• • The committee will not offer any sign-on bonuses that do
not conform to the conditions set out above, for example the
“golden hello”
• •
In the case of share awards forfeited they will have equivalent
performance conditions unless the committee determines otherwise
• • 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 clawback
All Executive Committee members recruited in 2021 were
remunerated in line with the recruitment policy.
Termination policy
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 below, but excludes variable pay.
All Executive Committee members terminated in 2021 were paid in
line with the termination policy.
Reasons for termination
DSP cash
bonus
Deferred
cash awards
Deferred
share
awards
Voluntary
resignation
Base salary
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
Dismissal/
termination
for cause
Base pay will
be paid until
employment
ceases
Pension
contributions
will be paid until
employment
ceases
Normal and early retirement,
retrenchment and death
Mutual
separation
Base pay is paid for a defined period
based on cause and local policy
as employees have different
employment entities
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
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
Medical provision/payment will be
provided until employment ceases
Benefits will fall away when
employment ceases
Pension
Medical
provisions
Benefits
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 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
Applicable benefits may continue
to be provided during the notice
period but will not be paid on a lump
sum basis
Voluntary
resignation
Dismissal/
termination
for cause
Normal and early retirement,
retrenchment and death
Mutual
separation
Reasons for termination
continued
Forfeit, no bonus
No bonus
Discretion to pro-rate for period worked Discretion to pro-rate for period
worked
Unvested awards lapse
Unvested
awards lapse
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
Unvested awards lapse
Unvested
awards lapse
Retrenchment and retirement
(early, normal and late):
Senior managers – upon separation,
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 separation date
Executives – upon separation of
employment, vested shares may be
exercised within six months following
separation date. The participant will
continue to hold unvested shares post
separation 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 separation,
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
separation date
Executives – upon separation of
employment, vested shares may be
exercised within six months following
separation date. The participant will
continue to hold unvested shares post
separation of employment to vest at
the original vesting date. Upon vesting
of these shares, participant has up to
six months to exercise vested shares
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AngloGold Ashanti Limited 2021AngloGold Ashanti Limited 2021 SECTION 2: OVERVIEW OF THE REMUNERATION POLICY
continued
Revised minimum shareholding requirements
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 MSR was introduced for the executive management team and the MSR was further increased with effect from 2020.
In 2021, the committee further enhanced the MSR to include a 12-month post termination MSR, to be implemented commencing
1 January 2022. 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 revised MSR
(1 January 2020)
Within six years of
appointment/ from
introduction of revised MSR
(1 January 2020)
150% of net annual
base salary
300% of net annual
base salary
Holding
requirement
Post termination holding period
effective 1 January 2022
Role
CEO
CFO
125% of net annual
base salary
250% of net annual
base salary
Throughout
employment as a
director or prescribed
officer
The post-termination MSR will be the
requirement based on the MSR policy
at the time of termination. Should the
executive depart (or no longer serve as
director or prescribed officer) before
they have achieved the MSR, all shares
allocated effective 1 January 2022
from the Company’s share incentive will
be held for one year post-termination
period. The holding will be up to their
required MSR
Executive management employment contracts provide that, in
the event of their employment being terminated as a result of a
change in control, the following is applicable:
I. All salary, benefits and bonuses in lieu of their notice pay
II. An amount equivalent to I above, and inclusive of the value 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 advisors
The committee, which is comprised solely of independent non-
executive directors, engages independent advisors 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 all major international markets. They comment
on technical matters, and generally opine on the committee’s work.
The performance of PwC as the independent advisor is evaluated
from time to time. Their fees are set to reflect time commitment,
value added and market norms. For the year ended 31 December
2021, fees payable to PwC amounted to GBP449,100.
100% of net annual
base salary
200% of net
base salary
Executive
management
team
The following count towards an individual MSR:
• • Shares purchased on the market, either directly or indirectly
• • Vested shares from AngloGold Ashanti’s share incentive
schemes
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 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.
Change in control
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.
Key focus areas with which PwC assisted in 2021 include:
• • Consultation on the appointment of the new CEO
• • Advise on the appropriateness of the DSP structure and metrics
• • Consultation on executive management matters
• • Wage differential calculations and associated benchmarking
• • Market trends, updates and best practice guidelines
• • Committee training, where required
It is the committee’s opinion that PwC has acted in an independent
manner, in that they have primarily provided directional and
strategic advice.
Given the change in AngloGold Ashanti’s Independent Auditors
from Ernst & Young (EY) to PwC, the committee has embarked on
a formal tender process to appoint a new independent advisor.
The committee also made use of the services and output of
Mercer, who provided global survey data and analysis. Mercer’s
charges amounted to R438,971.
Non-executive directors remuneration policy
AngloGold Ashanti’s non-executive directors (NEDs) continue to be
paid according to their roles. Retainer fees for board and standing
committees are paid quarterly in arrears and are not subject to
attendance at meetings.
The policy is applied using the following principles:
• • Fees are reviewed annually and increases are effective as at the
date of the AGM. They are set using a global comparator group
which is derived from companies with similar size, complexity
and geographic spread
• • For the first time since 2014, the NEDs received an inflationary
fee adjustment of 2% in 2021 based on market data provided by
PwC in accordance with the selected peer group
• • NEDs receive a travel allowance per night when they are away
from their home country for board meetings or on Company
approved business
• • NEDs are not eligible to receive any short- or long-term incentives
• • For 2022 the NEDs will not receive a fee increase to align
themselves with the executive and senior management teams
(Details of the NED fees are presented on pages 143 of this report
and 28 of the )
Non-executive directors’ Minimum
Shareholding Requirement
During February 2022, the board approved an MSR for NEDs.
In terms of the policy, NEDs are required to acquire and hold
an MSR in AngloGold Ashanti shares, equivalent to 150% of
their annual base fee within four years of the effective date
of the policy for existing NEDs and from the effective date of
appointment for new NEDs.
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AngloGold Ashanti Limited 2021AngloGold Ashanti Limited 2021
SECTION 3: REMUNERATION IMPLEMENTATION REPORT
JANUARY TO DECEMBER 2021
This 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 2021.
Executive management team pay
Mercer conducts a biennial bespoke survey of executive
management team remuneration. For 2021, 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 committee approved
the inclusion of Sibanye-Stillwater into the comparator group
commencing in 2022. See .
The companies included in the comparator group are ranked in
terms of a number of criteria selected in areas which were aligned
with AngloGold Ashanti. The table below summarises the 2021
comparator group:
2021 Comparator benchmark group
Agnico Eagle Mines
Anglo American Platinum Limited
Antofagasta
Barrick Gold Corporation
B2Gold Corporation
Gold Fields Limited
Kinross Gold Corporation
Newcrest Mining Limited
Newmont/Goldcorp
South32
Yamana Gold Incorporated
Canada
South Africa
United Kingdom
Canada
Canada
South Africa
Canada
Australia
United States
Australia
Canada
Annual salary review 2021
In January 2021, 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. Most of
the executive management voluntarily elected to donate their
increase to the special COVID-19 relief fund in South Africa.
The respective CPI increases applicable to the executive
management team were as follows:
Region
Australia
South Africa
United States
Inflationary salary
increase
1.5%
4.1%
2.0%
It is to be noted that a special salary increase adjustment was
implemented effective 1 January 2021 for Ms Lizelle Marwick who
has received an overall increase of 20% to align her closer to both
the market and her internal peers.
Details are available in the single total figure reporting table on
pages 128 to 129.
For management and below employees that are not in the
bargaining unit, the committee reviews a local market increase
application, this is primarily based on CPI. However, concession
is granted where there are region specific scarce skills or hyper-
inflation considerations. For 2021 the majority of increases
were CPI based. Actual increases are typically performance
differentiated while retaining the overall CPI increase pool.
Increases awarded to our various bargaining units were
determined through a collective bargaining process.
Executive movements
A new CEO, Mr Alberto Calderon, was appointed on 1 September
2021. His remuneration and sign-on details are reflected in the
single figure reporting on pages 128 and 129.
Ms Christine Ramon, Interim CEO, and Mr Ian Kramer, Interim CFO,
continued in their interim appointments, which had begun on
1 September 2020, until the appointment of the new CEO on
1 September 2021, when Ms Christine Ramon and Mr Ian Kramer
resumed their respective roles as CFO and Senior Vice President:
Group Finance.
The Interim CEO’s and Interim CFO‘s remuneration details for 2021
are reflected as follows on pages 128 and 129:
• • Ms Ramon: Interim CEO from 1 January 2021 to 31 August 2021
and CFO from 1 September 2021 to 31 December 2021
• • Mr Kramer: Interim CFO (in his capacity as a prescribed officer)
from 1 January 2021 to 31 August 2021
An allowance aligned to the Company’s acting allowance policy
formed part of Ms Ramon and Mr Kramer’s remuneration to
recognise the additional responsibilities associated with these
roles for the period 1 January 2021 to 31 August 2021.
Ms Tirelo Sibisi, Executive Vice President: Group Human
Resources, resigned effective 1 April 2021; her last day of
employment was 30 September 2021. Ms Italia Boninelli was
appointed as Interim Group Human Resources Executive
Consultant and a prescribed officer for the period 1 April 2021 to
31 December 2021. She will remain on contract until 31 March
2022. Their remuneration is reflected on pages 128 and 129.
Mr Graham Ehm, Executive Vice President: Planning and Technical,
retired effective 31 December 2021. He was replaced by Mr Marcelo
Godoy, Chief Technology Officer effective 15 October 2021. Their
remuneration is reflected on pages 128 and 129.
Mr Vaughan Chamberlain assumed the role of Acting Chief
Development Officer from 1 October 2021. An allowance aligned
with the Company’s acting allowance policy formed part of
Mr Chamberlain’s remuneration to recognise the additional
responsibilities associated with the prescribed officer role for the
period 1 October 2021 to 31 December 2021. This is reflected on
pages 128 and 129.
Due to the reconfigured Operating Model, Sicelo Ntuli separated
from the Company after a distinguished career spanning 22 years.
His separation payments were calculated in line with the relevant
policy and can be seen in the single figure tables on pages 128
and 129.
Ms Lisa Ali, Chief People Officer, and Mr Terry Briggs, Chief
Development Officer, will both be joining AngloGold Ashanti
effective 1 April 2022. No payments were made to them for the
2021 reporting period.
The single total figure reporting on pages 128 and 129 provides
the remuneration details of executive directors and prescribed
officers who held office in the current year in line with the
shareholder-approved standard conditions of employment. It is
to be noted that KPM Dushnisky who was no longer a director
or prescribed officer for the relevant period in 2021 was paid the
balance of his 12-month notice period of $2.8m, which included
his DSP FY2020 cash bonus in February 2021. These payments
are in accordance with our termination policy on page 122 and
were previously disclosed in our 2020 report.
The single figure remuneration comprises an overview of all the
pay elements available to the executive management team for the
year ended 31 December 2021.
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126
127
AngloGold Ashanti Limited 2021AngloGold Ashanti Limited 2021
SECTION 3: REMUNERATION IMPLEMENTATION REPORT
JANUARY TO DECEMBER 2021 continued
Executive directors’ and prescribed officers’ remuneration
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. It comprises an overview of all the pay elements available to the executive
management team for the year ended 31 December 2021.
The following are definitions of terminology used in the adoption of the reporting requirements under King IV:
Reflected
In respect of the DSP awards, 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 but may not
yet have been paid to the executive in the current period.
Single total figure of remuneration
Base Salary
ZAR denominated
portion (1)
ZAR '000
USD/AUD
denominated
portion (1)
ZAR '000
–
–
6,104
5,864
6,104
5,864
4,648
4,465
4,725
–
1,047
–
440
5,282
–
–
–
–
–
–
2,408
1,156
4,706
1,896
5,415
5,202
1,144
4,484
24,533
22,485
7,821
–
4,324
4,594
12,145
4,594
3,062
3,305
–
–
252
–
335
4,255
10,392
10,462
10,760
10,832
1,882
–
–
–
1,828
939
3,567
3,851
758
3,518
32,836
37,162
2021
2020
2021
2020
2021
2020
2021
2020
2021
2020
2021
2020
2021
2020
2021
2020
2021
2020
2021
2020
2021
2020
2021
2020
2021
2020
2021
2020
2021
2020
Executive directors
A Calderon (4)
KC Ramon (5)
Total executive directors
Prescribed officers
SD Bailey
I Boninelli (6)
VA Chamberlain (7)
PD Chenard (8)
GJ Ehm (9)
L Eybers
MC Godoy (10)
I Kramer (11)
L Marwick (12)
S Ntuli (13)
TR Sibisi (14)
Total prescribed officers
Pension Scheme
benefits
Once off
relocation costs
ZAR '000
ZAR '000
Cash in lieu
of dividends
ZAR '000
Other
benefits (2)
ZAR '000
DSP
awards (3)
ZAR '000
Sign-on
awards granted
ZAR '000
Other payments
ZAR '000
Single total figure
of remuneration
ZAR '000
USD '000 (15)
Awards earned during the period reflected
but not yet settled
2,066
–
864
834
2,930
834
–
–
–
–
137
–
–
–
291
284
291
284
141
–
301
144
629
256
756
728
242
1,000
2,788
2,696
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
67
385
67
385
30
75
–
–
–
–
–
–
54
409
52
377
–
–
15
–
13
–
36
95
47
258
247
1,214
156
–
525
924
681
924
1,246
1,259
131
–
29
–
1,489
2,468
1,548
710
1,578
798
358
–
48
24
271
136
2,239
1,387
14
58
8,951
6,840
20,481
–
7,652
22,507
28,133
22,507
15,752
24,103
4,091
–
7,228
–
–
8,554
6,359
32,108
21,189
31,896
4,782
–
5,459
6,085
13,735
16,615
5,358
26,942
–
20,802
10,289
–
–
–
10,289
–
–
–
–
–
–
–
–
–
–
–
–
–
35,072
–
–
–
–
–
–
–
–
–
83,953
167,105
35,072
–
–
–
22,974
16,513
22,974
16,513
–
–
–
–
264
–
–
–
–
–
–
–
–
–
602
289
–
571
17,599
–
4,406
–
22,871
860
40,813
–
42,510
51,621
83,323
51,621
24,738
33,207
8,947
–
8,957
–
2,264
20,559
18,644
43,973
33,870
44,187
42,235
–
8,833
7,698
21,182
20,413
34,970
38,205
6,611
30,120
2,761
–
2,875
3,138
5,636
3,138
1,673
2,019
605
–
606
–
153
1,250
1,261
2,673
2,291
2,686
2,857
–
598
468
1,433
1,241
2,365
2,322
447
1,831
211,251
238,362
14,289
14,490
(1) Salary denominated in USD/AUD for global roles and responsibilities converted to ZAR on payment date.
(2) Other benefits include health care, group personal accident cover, group life cover, funeral cover, accommodation allowance, pension allowance, airfare and surplus
leave encashed. Surplus leave days accrued are automatically encashed unless work requirements allow for carry over.
(3) The fair value of the DSP comprises a cash bonus and share awards for the year ended 31 December 2021. The cash bonus is payable in February 2022 and the share
awards are allocated in February 2022. Shares vest over a three to five year period in equal tranches.
(8) PD Chenard retired as EVP: Strategy and Corporate Development and prescribed officer with effect from 31 January 2021. All payments including salary and other
benefits were pro-rated and aligned to retirement date.
(9) GJ Ehm retired as EVP: Group Planning and Technical and prescribed officer with effect from 31 December 2021. All payments including salary, pension, DSP awards
(cash bonus only) and other benefits are aligned to retirement date.
(10) MC Godoy was appointed as Chief Technology Officer and prescribed officer effective 15 October 2021. All payments including salary, DSP awards, pension, and other
(4) A Calderon was appointed as executive director and CEO with effect from 1 September 2021. All payments including salary, DSP awards, pension, and other benefits
benefits were pro-rated and aligned to the appointment period.
were pro-rated and aligned to the appointment period.
(5) KC Ramon was appointed as Interim CEO from 1 September 2020 to 31 August 2021. Included in the DSP awards is the DSP cash bonus and share award for 2021
calculated on the CFO role for four months. Other payments reflect the acting allowance paid and the DSP cash bonus and share award for the acting period of eight
months calculated on the CEO percentage bonus opportunity.
(6) I Boninelli was appointed as Executive Group Human Resources Consultant and prescribed officer effective 1 April 2021. All payments including salary, DSP awards
(cash bonus only) and other benefits were pro-rated and aligned to the appointment period.
(7) VA Chamberlain was appointed as Interim Chief Development Officer and prescribed officer effective 1 October 2021. All payments including salary, pension and other
benefits were pro-rated and aligned to the appointment period. Included in the DSP awards is the DSP cash bonus and share award for the full year of 2021 (DSP
awards were not pro-rated but were calculated based on his Senior Vice President (SVP) salary including a three-month acting allowance). Other payments reflect the
acting allowance for the acting period from 1 October to 31 December 2021.
(11) I Kramer was appointed as Interim CFO and prescribed officer from 1 September 2020 to 31 August 2021. All payments including salary, pension and other benefits
were pro-rated aligned to the acting period for 2021. Included in the DSP awards is the DSP cash bonus and share award for the full year of 2021 (DSP awards were not
pro-rated but were calculated based on his SVP salary including an eight-month acting allowance). Other payments reflect the acting allowance for the acting period
from 1 January to 31 August 2021.
(12) L Marwick’s 2021 earnings are for a full financial year as compared to 2020 earnings which were prorated as she was promoted and appointed as a prescribed officer
effective 1 July 2020.
(13) S Ntuli separated from the Company due to the reconfigured Operating Model effective 31 December 2021. All payments including salary, pension, DSP awards (cash
bonus only) and other benefits are aligned to separation date. Other payments include separation payments.
(14) TR Sibisi resigned as EVP: Group Human Resources and prescribed officer effective 1 April 2021. All payments including salary, pension and other benefits were
pro-rated and aligned to 1 April 2021. Included in other payments is payment in lieu of unworked notice period from 1 April 2021 to 30 September 2021.
(15) Convenience conversion to USD at the year-to-date average exchange rate of $1: R14.7842 (2020: $1: R16.4506).
128
129
AngloGold Ashanti Limited 2021AngloGold Ashanti Limited 2021 SECTION 3: REMUNERATION IMPLEMENTATION REPORT
– JANUARY TO DECEMBER 2021 continued
Total cash equivalent received reconciliation
Awards earned during the period
reflected but not yet settled
DSP 2020 cash
portion settled
DSP share awards settled
Sign-on cash settled
Sign-on shares settled
Executive directors
A Calderon
KC Ramon
2021
2020
2021
2020
Total executive directors
2021
Prescribed officers
SD Bailey
I Boninelli
VA Chamberlain
PD Chenard
GJ Ehm
L Eybers
MC Godoy
I Kramer
L Marwick
S Ntuli
TR Sibisi
2020
2021
2020
2021
2020
2021
2020
2021
2020
2021
2020
2021
2020
2021
2020
2021
2020
2021
2020
2021
2020
2021
2020
Single total
figure of
remuneration
DSP
awards (1)
Sign-on
awards
granted
Market
movement
since grant
date (2)
Grant fair
value (2)
Vesting fair
value (2)
ZAR '000
ZAR '000
ZAR '000
ZAR '000
ZAR '000
ZAR '000
ZAR '000
40,813
(20,481)
(10,289)
–
42,510
51,621
83,323
51,621
24,738
33,207
8,947
–
8,957
–
2,264
20,559
18,644
43,973
33,870
44,187
42,235
–
8,833
7,698
21,182
20,413
34,970
38,205
6,611
30,120
–
(28,907)
(38,137)
(49,388)
(38,137)
(15,752)
(24,103)
(4,091)
–
(7,228)
–
–
(8,554)
(6,359)
(32,108)
(21,189)
(31,896)
(4,782)
–
(5,459)
(6,085)
(13,735)
(16,615)
(5,358)
(26,942)
–
(20,802)
(83,953)
(167,105)
–
–
–
(10,289)
–
–
–
–
–
–
–
–
–
–
–
–
–
(35,072)
–
–
–
–
–
–
–
–
–
–
–
11,479
9,214
11,479
9,214
6,793
5,473
–
–
–
–
7,977
5,557
9,465
8,612
9,402
8,518
–
–
2,434
–
4,760
–
7,593
6,367
5,849
5,943
–
–
7,751
22,804
7,751
22,804
3,892
4,960
–
–
2,099
–
2,624
–
6,912
20,969
6,683
19,688
–
–
1,772
–
1,543
–
6,278
6,289
5,399
15,258
37,202
67,164
–
–
1,596
24,878
1,596
24,878
504
5,278
–
–
425
–
(151)
–
1,468
21,781
1,376
21,295
–
–
340
–
262
–
1,637
6,710
1,132
16,122
6,993
71,186
–
–
9,347
47,682
9,347
47,682
4,396
10,237
–
–
2,524
–
2,473
–
8,380
42,750
8,059
40,983
–
–
2,112
–
1,805
–
7,915
12,999
6,531
31,380
44,195
138,349
Total prescribed officers
2021
2020
211,251
238,362
(35,072)
–
54,273
40,470
Grant fair
value (2)
ZAR '000
10,289
–
–
–
10,289
–
–
–
–
–
–
–
–
3,165
–
–
–
–
4,583
–
–
–
–
–
–
–
–
–
4,583
3,165
Currency
movement since
grant date (2)
Settlement fair
value (2) Grant fair value (2)
Market
movement since
grant date (2)
Vesting fair
value (2)
Total cash equivalent received
reconciliation
ZAR '000
ZAR '000
ZAR '000
ZAR '000
ZAR '000
ZAR '000
US$ '000 (3)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
10,289
–
–
–
10,289
–
–
–
–
–
–
–
–
3,165
–
–
–
–
4,583
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
6,513
6,513
3,644
9,012
10,157
15,525
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
20,332
–
34,429
70,380
54,761
70,380
20,175
24,814
4,856
–
4,253
–
22,871
36,252
30,130
63,227
30,142
61,792
6,964
–
7,920
1,613
14,012
3,798
45,120
30,629
18,991
46,641
4,583
3,165
6,513
6,513
3,644
9,012
10,157
15,525
205,434
268,766
1,375
–
2,329
4,278
3,704
4,278
1,365
1,508
328
–
288
–
1,547
2,204
2,038
3,843
2,039
3,756
471
–
536
98
948
231
3,052
1,862
1,285
2,835
13,897
16,337
(1) The fair value of the DSP comprises of a cash bonus and share awards for the year ended 31 December 2021. The cash bonus is payable in February 2022 and the
share awards are allocated in February 2022. Shares vest over a three to five year period in equal tranches.
(2) 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
DSP 2019, DSP 2020 and vested sign-on share awards and difference in the currency movements for the vested sign-on cash settled award.
(3) Convenience conversion to USD at the year-to-date average exchange rate of $1: R14.7842 (2020: $1: R16.4506).
Details of the share incentive scheme awards are reflected in the tables that follow.
130
131
AngloGold Ashanti Limited 2021AngloGold Ashanti Limited 2021 SECTION 3: REMUNERATION IMPLEMENTATION REPORT
JANUARY TO DECEMBER 2021 continued
Number of unvested awards and movement during the reporting period
Number of unvested awards and movement during the reporting period
Sign-on share awards
Prescribed officers
PD Chenard
MC Godoy
Total prescribed
officers
Other management (4)
Total sign–on
share awards
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
2021
2020
2021
2020
2021
2020
2021
2020
2021
2020
32,476
64,951
–
–
32,476
32,475
–
–
107,353
–
–
–
32,476
107,353
32,476
64,951
–
32,475
87,939
5,449
87,939
175,878
–
87,939
120,415
112,802
120,415
240,829
–
120,414
–
–
–
–
–
–
896
–
896
–
–
32,476
–
–
10,157
15,525
107, 353
30,489
–
–
–
–
107,353
30,489
10,157
32,476
4,553
87,939
–
15,525
1,415
27,277
–
28,473
111,906
31,904
37,434
120,415
–
43,998
–
11,124
35,287
–
35,287
11,124
1,497
30,121
36,784
41,245
(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 to three year period in equal tranches in accordance with the JSE Listings Requirements.
(2) The fair value of vested awards represents the value received on settlement date.
(3) The fair value of unvested awards is calculated using the closing share price as at 31 December.
(4) The awards for other management include awards for Mr KPM Dushnisky who stepped down as executive director in 2020.
DSP awards
Executive directors
A Calderon
KC Ramon
Total executive
directors
Prescribed officers
SD Bailey
I Boninelli
VA Chamberlain (4)
PD Chenard
GJ Ehm
L Eybers
MC Godoy
I Kramer
L Marwick
S Ntuli
TR Sibisi (5)
Total prescribed
officers
Other management (6)
Total DSP awards
2021
2020
2021
2020
2021
2020
2021
2020
2021
2020
2021
2020
2021
2020
2021
2020
2021
2020
2021
2020
2021
2020
2021
2020
2021
2020
2021
2020
2021
2020
2021
2020
2021
2020
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
–
–
–
–
–
–
134,421
79,541
30,475
89,782
62,595
17,956
134,421
79,541
30,475
89,782
62,595
17,956
52,433
51,929
14,325
19,196
39,635
6,398
–
–
–
–
–
–
19,889
15,498
8,228
40,251
–
8,050
–
40,251
–
120,204
73,218
27,321
82,037
54,574
16,407
115,886
72,734
26,272
77,380
53,982
15,476
–
–
–
–
12,892
11,816
7,759
9,012
11,482
36,223
6,170
8,397
–
–
6,884
3,879
5,884
3,085
62,114
58,047
25,226
24,006
46,110
8,002
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
183,487
134,421
24,576
20,404
183,487
24,576
134,421
20,404
90,037
52,433
16,045
12,920
–
–
–
–
–
–
9,347
6,069
9,347
6,069
4,396
2,163
–
–
27,159
4,788
2,524
32,201
40,251
166,101
120,204
162,348
115,886
–
–
17,824
12,892
41,821
11,482
–
–
13,121
22,622
17,789
22,473
17,597
–
–
3,651
2,938
11,192
2,737
94,935
17,935
62,114
15,030
–
2,473
–
8,380
5,546
8,058
5,231
–
–
2,112
1,311
1,805
1,043
7,915
2,705
6,531
4,287
44,194
22,286
212,629
145,376
266,170
173,731
–
–
60,312
46,042
60,312
46,042
29,595
17,959
–
–
8 927
–
10,584
13,787
54,597
41,172
53,364
39,693
–
–
5,859
4,416
13,747
3,933
31,205
21,275
–
32,120
207,878
174,355
423,292
501,059
691,482
721,456
93,775
–
21,291
72,484
–
–
63,424
43,035
12,684
–
93,775
14,028
528,926
319,465
143,481
72,484
279,972
294,996
65,931
–
632,426
509,037
98,706
96,160
1,442,976
786,342
691,212
250,330
1,287,776
242,956
1,229,606
818,941
430,107
155,575
1,462,865
266,950
2,106,323
1,185 348
865,168
322,814
2,103,689
366,238
1,599,360
1,176,532
513,994
155,575
2,106,323
383,514
(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,
24 February 2021.
(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) Opening balances were included as part of Other Management.
(5) Share awards lapsed due to resignation.
(6) The awards for other management include awards for Ms ME Sanz, who resigned in 2020, and Mr KPM Dushnisky, who stepped down as executive director in 2020.
132
133
AngloGold Ashanti Limited 2021AngloGold Ashanti Limited 2021 SECTION 3: REMUNERATION IMPLEMENTATION REPORT
JANUARY TO DECEMBER 2021 continued
Minimum shareholding requirements
For the purposes of the MSR calculation, only fully owned and vested awards will count towards the determination of the MSR.
2021 DSP performance outcomes
The committee approved the 2021 DSP metrics Company performance achievement with the following downward adjustments:
Executive
Executive directors
A Calderon (1)
KC Ramon
Prescribed officers
SD Bailey
I Boninelli (2)
VA Chamberlain (3)
GJ Ehm (4)
L Eybers
MC Godoy (5)
L Marwick
S Ntuli (6)
Six-year target
achievement date
September 2027
March 2021
January 2025
April 2027
October 2027
March 2019
March 2023
October 2027
July 2026
January 2025
MSR holding as at
31 December 2021
as a percentage of
net base pay
Three-year MSR target
achievement percentage
Six-year MSR target
achievement percentage
7%
899%
199%
0%
57%
243%
370%
0%
108%
181%
150%
125%
100%
100%
100%
100%
100%
100%
100%
100%
300%
250%
200%
200%
200%
200%
200%
200%
200%
200%
(1) Appointed executive director with effect from 1 September 2021 and the three-year MSR achievement is due in September 2024.
(2) Appointed prescribed officer with effect from 1 April 2021 and the three-year MSR achievement is due in April 2024.
(3) Appointed prescribed officer with effect from 1 October 2021 and the three-year MSR achievement is due in October 2024.
(4) Retired prescribed officer with effect from 31 December 2021. MSR holding not required.
(5) Appointed prescribed officer with effect from 15 October 2021 and the three-year MSR achievement is due in October 2024.
(6) Prescribed officer separated from the Company due to the reconfigured Operating Model with effect from 31 December 2021. MSR holding not required.
• • nCROE: 7.5% reduction from stretch to target on the basis of the Company’s performance
• • AIFR: 4% reduction as a result of the two fatalities that took place at Obuasi in Ghana and Serra Grande in Brazil
• • This resulted in a total reduction of 11.5%. Therefore the 2021 DSP Company performance achievement will be 70.73% (from the original
82.23%)
The table below, which is a 14% reduction on the unadjusted figure, summarises AngloGold Ashanti’s remuneration metrics, their
weightings, and performance against these metrics applicable to the DSP during 2021:
DSP performance measure
Financial
measures
Relative total shareholder return
(measured in US$)
Weighting
10.00%
Threshold
measures
Median TSR of
comparators
Target measures
Stretch measures
Halfway between
median and upper
quartile
Upper quartile of
TSR comparators
2021
achievement %
15.00%
Absolute total shareholder return
(measured in US$)
Normalised cash return on equity (nCROE)
Production
All-in-sustaining costs
10.00%
15.00%
12.50%
15.00%
US$ COE
US$ COE + 2%
US$ COE + 6%
US$ COE (6%)
US$ COE + 9% (15%) US$ COE + 18% (24%)
2,700oz (000)
US$1,230/oz
2,800oz (000)
US$1,205/oz
2,900oz (000)
US$1,180/oz
Future
optionality
Ore Reserve additions (pre-depletion,
asset sales, mergers and acquisitions)
6.25%
Plus 1.4Moz
Plus 2.9Moz
Plus 4.3Moz
Safety,
health,
environment
and
community
Mineral Resource (pre-depletion, asset
sales, mergers and acquisitions)
All injury frequency rate (AIFR) –
one year
Major hazard management critical
control percentage compliance
Cumulative number of critical control
registers established for site-specific
material health risks (as captured in
AuRisk) at each operation
Compliance with occupational
exposure monitoring programmes for
noise and dust at each operation
Number of reportable environmental
incidents at operating mines
GHG emissions – develop a carbon
budget for each operation based on
approved business plans
Number of business disruptions as a
result of community unrest
Core value:
People
Succession bench strength in talent for
Executive Committee roles
Key staff retention
Gender diversity
Total
6.25%
Plus 3.8Moz
≥2.5%
performance
improvement
(2.33)
95% critical
control
compliance
4.00%
4.00%
Plus 7.5Moz
≥5%
performance
improvement
(2.27)
99% critical
control
compliance
Plus 11.3Moz
≥7.5%
performance
improvement
(2.21)
99.5% critical
control
compliance
1.50%
5
6
8
2.08%
60%
Compliance
70%
compliance
90%
compliance
2.01%
2
1
–
0.00%
80% of
operations
90% of
operations
100% of
operations
4.50%
3
2
–
3.13%
15 successors
16 successors
18 successors
85% p.a.
90% p.a.
95% p.a.
21% female
representation
23% female
representation
25% female
representation
0.00%
1.50%
0.00%
70.73%
1.50%
3.00%
3.00%
2.50%
2.00%
1.00%
2.50%
100%
15.00%
15.00%
0.00%
0.00%
5.91%
0.00%
2.00%
4.60%
134
135
No malus or clawback provisions were applied for the Executive Committee members in 2021.
AngloGold Ashanti Limited 2021AngloGold Ashanti Limited 2021 SECTION 3: REMUNERATION IMPLEMENTATION REPORT
JANUARY TO DECEMBER 2021 continued
CEO: Key objectives and achievements 2021 continued
Scorecard
Individual KPIs
Weighting Comments
20%
• • The CEO spent significant time with the leadership team immediately
Total remuneration outcomes – Alberto Calderon
Chief Executive Officer – four months (September – December 2021)
Start date:
Notice period:
Change in control
(as described in the Remuneration Policy, “Change in control” on page 124):
CEO
(Rm)
Actual Earnings
8
2
7
14
1 September 2021
12 months
12 months
Target
Maximum
0
24
24
6
6
24
36
48
72
30
60
90
120
150
Base salary Benefits DSP cash DSP deferral
Total actual pay for Mr Calderon is based on four months, which is aligned to his start date of 1 September 2021. Note that the
target and maximum earning potential have been annualised.
• • Operating model that builds organisational
efficiency through effective structure and
leadership
• • Effective stakeholder management through:
• • Effective relationships with Shareholders
and Investors; and
• • Effective regular communication with
Executive Committee, operations, projects
and employees
Total
100%
CEO: Performance incentive outcome 2021
2021 DSP performance outcome
Financial performance targets
Relative total shareholder return
Absolute total shareholder return
nCROE
Production
All-in sustaining costs
Ore Reserve pre-depletion
Mineral Resource additions pre-depletion
Safety, health, environment and community
Core value: people
Maximum DSP cash bonus opportunity: 150%
Maximum DSP share awards opportunity: 300%
Total DSP opportunity: 450% (as % of base pay)
Final cash bonus results: 86.58%
Total % for Company performance:
Final share award results: 173.17%
Final DSP result for 2021: 259.75%
Organisational performance weighting:
CEO: Key objectives and achievements 2021
Scorecard
Weighting Comments
Health, safety, environment and community
25%
• • A new Climate Change Strategy has been developed
• • Safety – 12.5%
• • Health, environment and community – 12.5%
• • Results aligned to Company DSP outcome
• • We have published our inaugural Climate Change Report during the
year, in line with the recommendations of the Task Force on Climate-
related Financial Disclosures
• • Our all injury frequency rate in 2021 ended with 2.14 injuries per million
hours worked, which remains well below the ICMM member Company
average. This however does not detract from the fact that in 2021 we
lost two of our colleagues
• • The decarbonisation target of a 30% reduction in GHG emissions
intensity by 2022 has been exceeded (baseline year: 2007)
Production and cost
55%
• • Our mines stabilised in the second half of the year with a 12%
• • Achievement of production ounces and cash
cost/oz
• • Deliver the Company strategy and market
guidance
• • Advance major projects for the Company’s
long-term future
production gain from our operating assets (excluding Obuasi) over the
first half, partly offsetting rising costs related to COVID-19 and inflation
impacts
• • We generated $104m free cash flow, leaving our balance sheet in a
solid position at year-end, with low gearing, strong liquidity and no near-
term debt maturities
• • We resumed underground mining at Obuasi in October and since then
the start plan has tracked to schedule
• • The acquisition of Corvus has enhanced the project pipeline. This
delivers a unique opportunity to consolidate Corvus’ assets with our
own in one of the world’s top ranking mining jurisdictions to create a
meaningful new production base, with first gold output anticipated in
three years
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 award correlation:
B - DSP opportunity based on individual performance:
Total % of DSP 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 for four months as at 31 December 2021 (all offshore payments
converted to ZAR at exchange rate of ZAR14.7842: USD1)
Annual cash portion of DSP:
Annual deferred share portion of DSP (to vest over five years):
Total 2021 deferred share plan award:
136
137
after his appointment in September 2021, designing and
communicating the new model and implementation was completed
in early 2022. The new organisational structure provides clear
accountability across the business
• • With a focus on transformation, talent management, business
improvement and mine planning, the CEO made three key external
appointments, adding significant experience to an already seasoned
group of existing executives
Weighting
DSP award outcome
10.00%
10.00%
15.00%
12.50%
15.00%
6.25%
6.25%
19.50%
5.50%
100.00%
15.00%
15.00%
15.00%
0.00%
0.00%
5.91%
0.00%
18.32%
1.50%
70.73%
x
80.00%
=
56.58%
20.00%
X
150.00%
=
30.00%
86.58%
x
100.00%
200.00%
=
86.58%
173.17%
x
7,884,907
=
6,827,068
13,654,135
20,481,203
AngloGold Ashanti Limited 2021AngloGold Ashanti Limited 2021
SECTION 3: REMUNERATION IMPLEMENTATION REPORT
JANUARY TO DECEMBER 2021 continued
Total remuneration outcomes – Christine Ramon
Start date:
Notice period:
Change in control
(as described in the Remuneration Policy, “Change in control” on page 124):
(a) Interim Chief Executive Officer – eight months (January – August 2021)
Interim CEO: Personal KPIs and performance 2021 continued
1 October 2014
6 months
6 months
Interim CEO
Personal KPIs
Guide the development
of 2022 strategy and
execute the agreed 2021
strategy
Interim CEO
(Rm)
Actual Earnings
Target
Maximum
0
7
7
7
2.5
2.5
2.5
7
6
9
14
13
19
5
10
15
20
25
30
35
40
Base salary Benefits DSP cash DSP deferral
Total actual pay for Ms Ramon in 2021, 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)
Interim CEO: Personal KPIs and performance 2021
Final cash bonus results: 81.58%
Final share award results: 163.17%
Final DSP result for 2021: 244.75%
Interim CEO
Personal KPIs
Focus on employee
health and safety and
maintain business
continuity in the context
of the COVID-19
pandemic
Weightings Comments
20%
• • Supported the roll out of the revitalised safety strategy across the group which resulted in the
number of reported high potential incidents improving year-on-year
• • Maintained focus on business continuity while proactively managing operational and supply
risks to ensure adequate stockpile levels and three to six months of critical consumables and
spares across operations to mitigate risk
• • Ensured AngloGold Ashanti maintained its focus on the COVID-19 vaccination roll-out
programme across the group within the regulatory frameworks of each of our operational
jurisdictions
Disciplined capital
allocation: balance sheet,
reinvestment in the
business and shareholder
returns
Effective stakeholder
management
Organisational culture
and values refresh
Weightings Comments
25%
• • Focused on extending mine lives and improving Ore Reserve confidence through
development. Completed 465km of brownfield drilling in the first half of the year. Notable
successes included the continued growth of the newly discovered Frankie orebody at
Sunrise Dam and additional high-grade intercepts at Geita’s Nyamulilima discovery
• • Tropicana-Havana Stage 2 progressed and Sunrise Dam’s Golden Delicious open pit
was completed
• • The Geita Hill underground portal development advanced according to plan
• • Received permits for the Geita Nyamulilima open pit earlier than expected and progressed
its development
• • Obtained the new TSF facility permit for Iduapriem and advanced related plans
• • The reinvestment strategy experienced delays in the execution of Cut 2 at Iduapriem, a result
of community issues, and an unplanned pit-wall failure at Tropicana has led to a three-month
production delay for 2022
• • Kept market informed on Obuasi, and in particular the voluntary suspension of underground
activities there following the fatal incident in May 2021, the mine-wide review process and
the potential impact on the Ore Reserve. The Obuasi mine suspension led to the revision of
market guidance in August 2021
• • The Corvus business case was progressed and the proposal to acquire the 80% stake was
approved by board in July 2021
• • Supported the launch of the shared consciousness framework on 29 April 2021 to ensure
improved visibility, accountability and focus on ESG metrics
• • Ensured a strong focus on progressing the Company’s Climate Change Strategy
• • Ensured an appropriate focus and the necessary governance structures to monitor
implementation of the Brazilian TSF compliance programme
25%
• • Maintained adequate balance sheet liquidity. Balance sheet metrics remained strong with an
improved adjusted net debt to adjusted EBITDA ratio of 0.37 times at the end of the second
quarter 2021 compared to 0.73 times for June 2020
• • Maintained focus on capital discipline and ensuring that capital was managed within budget
• • Ensured substantial completion of Obuasi Phase 2 in June 2021. Phase 3 was established
and progressed while underground mining activities were suspended
20%
• • Represented AngloGold Ashanti at all major investor conferences
• • Led the capital markets day communication in February 2021. This was the first time
that AngloGold Ashanti management held this event in 8 years. The strategy and longer-
term guidance issued was well received by the market. Unfortunately, the suspension of
underground mining operations at Obuasi and cost pressures led to the revision in the
market guidance later in the year
• • Participated in key stakeholder forums and engaged with joint venture partners, ensuring
that AngloGold Ashanti’s position on key sustainability and other relevant matters was
advanced
• • Ensured regular communication with the organisation through briefs and townhall sessions
10%
• • Initiated and directed the organisational culture and values refresh journey
• • Continued to embed the diversity and inclusion framework across the group
• • Progressed unconscious bias training and played an active role in the Global Women’s
Forum
• • Ensured review of relevant human resource policies, practices and frameworks
• • Held regular team cohesion sessions with the executives
138
139
Total
100%
AngloGold Ashanti Limited 2021AngloGold Ashanti Limited 2021
SECTION 3: REMUNERATION IMPLEMENTATION REPORT
JANUARY TO DECEMBER 2021 continued
Interim CEO: DSP performance incentive outcome 2021
(b) Chief Financial Officer – four months (September – December 2021)
2021 DSP performance outcome
Financial performance targets
Relative total shareholder return
Absolute total shareholder return
nCroe
Production
All-in sustaining costs
Ore Reserve additions pre-depletion
Mineral Resource additions pre-depletion
Safety, health, environment and community
Core value: people
Total % for Company performance:
Organisational performance weighting:
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 award correlation:
B - DSP opportunity based on individual performance:
Total % of DSP 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 for eight months as at December 2021 (all offshore payments
converted to ZAR at exchange rate of ZAR14.7842: USD1)
Annual cash portion of DSP:
Annual deferred share portion of DSP (to vest over five years):
Total 2021 deferred share plan award:
Weighting
DSP award outcome
10.00%
10.00%
15.00%
12.50%
15.00%
6.25%
6.25%
19.50%
5.50%
100.00%
15.00%
15.00%
15.00%
0.00%
0.00%
5.91%
0.00%
18.32%
1.50%
70.73%
x
80.00%
=
56.58%
20.00%
X
125.00%
=
25.00%
81.58%
x
100.00%
200.00%
=
81.58%
163.17%
x
8,684,485
=
7,085,162
14,170,338
21,255,500
CFO
(Rm)
Actual Earnings
Target
Maximum
0
3
3
3
0.5
2
5
0.5
0.5
3
5
6
5
9
10
15
20
Base salary Benefits DSP cash DSP deferral
Total actual pay for Ms Ramon in 2021, which could result from the remuneration policy stated above, is shown in relation to target
and maximum earning potential.
Maximum DSP cash bonus opportunity: 127.5%
Maximum DSP share awards opportunity: 277.5%
Total DSP opportunity: 405% (as % of base pay)
CFO: Personal KPIs and performance 2021
CFO Personal KPIs
Weightings
Comments
Final cash bonus results: 69.35%
Final share award results: 150.93%
Final DSP result for 2021: 220.28%
Leadership and
stakeholder
engagement
Liquidity, ratings,
balance sheet
management
15%
• • Maintained engagement and effective relationships with investors, banks, debt investors,
ratings agencies and joint venture partners
• • Continued providing input at relevant stakeholder forums on financial, tax and regulatory
matters
30%
• • Delivered on the refinancing of the 2022 bonds through a new issuance in October 2021,
setting a new benchmark, for the lowest coupon ever achieved by AngloGold Ashanti
• • Launched a liability management exercise to redeem the 2022 bonds which was successfully
executed in November 2021
• • Ensured successful refinancing of the Geita $150m RCF in December 2021
• • Proactively engaged ratings agencies on AngloGold Ashanti’s strategy, cost initiatives,
Obuasi’s mining operations and risk mitigation measures applied during the COVID-19
pandemic. All three agencies reaffirmed AngloGold Ashanti’s credit rating during the second
half of 2021
• • Ensured that we maintained our focus on cash upstreaming while complying with regulatory
requirements across our various operating jurisdictions
• • Kibali repatriated a cash dividend of $231m (attributable) in 2021, a significant positive
development
• • Ensured that our focus remained on cash repatriation in Argentina where we repatriated
$19m in cash (net of withholding tax) in December 2021. The remainder of the cash in-
country was invested at attractive interest rates and mitigated currency devaluation
• • Ensured tangible progress on the Tanzanian VAT receivable where $54m was offset in 2021
against corporate taxes
• • The balance sheet and liquidity remained strong, despite operational issues, the suspension
of underground mining operations at Obuasi and COVID-19 impacts
140
141
AngloGold Ashanti Limited 2021AngloGold Ashanti Limited 2021
SECTION 3: REMUNERATION IMPLEMENTATION REPORT
JANUARY TO DECEMBER 2021 continued
CFO: Personal KPIs and performance 2021 continued
CFO Personal KPIs
Weightings
Comments
CFO: DSP performance incentive outcome 2021continued
2021 DSP performance year outcome
Weighting
DSP award outcome
Cost discipline and
cash preservation
measures
30%
• • Compiled revised production and cost guidance in August 2021 – this applied across all
metrics for 2021 after taking into consideration COVID-19 impacts (which was explicitly
excluded from guidance)
• • Proactively managed supply chain risks across the business. Despite the inflationary
B - DSP opportunity based on individual performance:
Total % of DSP pay opportunity (A+B)
pressures, supply chain savings of $52.3m were achieved for 2021 against a target of $55m
On-target total cash bonus opportunity (as % of base pay)
• • Maintained a strong focus on reducing corporate costs and non-essential expenditure.
Corporate costs were contained well below budget for the year
Governance and
Risk management
20%
• • Ensured a strong culture of compliance across the group through regular interaction with the
business, and quarterly CFO sessions; also ensured consistency in accounting practices and
proactive risk mitigation processes throughout the Company
• • Ensured that cyber security was effectively managed across the business. There were no
material breaches in cyber security during the year
• • The P80 target 2022 budget and P50 stretch budget were delivered timeously for
board approval
• • Supported the external auditor tender process which was successfully executed for
consideration by the Audit and Risk Committee in November 2021
People, culture, and
values refresh
5%
• • Directly involved in initiation of the organisational culture and values refresh, ensuring
broader finance team participation
• • Played an integral part in overseeing the design and implementation of the new Operating
Model changes for the finance and supply functions
Total
100%
CFO: DSP performance incentive outcome 2021
2021 DSP performance year outcome
Financial performance targets
Relative total shareholder return
Absolute total shareholder return
nCroe
Production
All-in sustaining costs
Ore Reserve additions pre-depletion
Mineral Resource additions pre-depletion
Safety, health, environment and community
Core value: people
Total % for Company performance:
Organisational performance weighting:
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 award correlation:
Weighting
DSP award outcome
10.00%
10.00%
15.00%
12.50%
15.00%
6.25%
6.25%
19.50%
5.50%
100.00%
15.00%
15.00%
15.00%
0.00%
0.00%
5.91%
0.00%
18.32%
1.50%
70.73%
x
80.00%
=
56.58%
20.00%
X
125.00%
=
25.00%
81.58%
x
85.00%
185.00%
=
69.35%
150.93%
x
3,473,818
=
2,408,953
5,243,023
7,651,976
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 for four months as at December 2021
(all offshore payments converted to ZAR at exchange rate of ZAR14.7842: USD1)
Annual cash portion of DSP:
Annual deferred share portion of DSP (to vest over five years):
Total 2021 deferred share plan award:
Non-executive directors’ fees and allowances
The board received a 2% inflationary increase for 2021. This increase was based on the US inflation rate in 2021, in line with market
practice. This is the first increase non-executive directors have received since 2014. During 2021, the board and its committees held a
significantly higher number of special meetings in respect of several strategic matters considered by the board and the recruitment of the
CEO and a non-executive, which resulted in an increase in fees paid to non-executive directors.
The table below details the fees and allowances paid to non-executive directors during the year as approved by shareholders.
Director
fees (1)
Committee
fees
Travel
allowance
Total
Total
MDC Ramos (Chairperson)
359,350
92,000
R Gasant (Lead independent director)
179,900
116,500
–
–
451,350
296,400
2021
(USD)
139,300
93,500
7,500
240,300
139,300
103,000
12,500
254,800
139,300
139,300
53,500
38,500
139,300
103,000
139,300
130,500
8,750
201,550
–
177,800
7,500
8,750
249,800
278,550
2020
(USD)
202,375
222,500
103,250
197,000
173,500
170,500
208,750
205,875
2019
(USD)
106,750
193,250
–
216,500
195,500
–
230,250
230,500
KOF Busia
AM Ferguson
AH Garner
NVB Magubane
MC Richter
JE Tilk
Total
(1) Includes the annual base fee paid to NEDs as well as fees paid for special board meetings.
1,375,050
730,500
45,000
2,150,550
1,483,750
1,172,750
142
143
AngloGold Ashanti Limited 2021AngloGold Ashanti Limited 2021
SUPPLEMENTARY INFORMATION
FORWARD-LOOKING STATEMENTS
SUPPLEMENTARY
information
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, return on equity, 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, the consequences
of the COVID-19 pandemic and the outcome and consequences
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, political and
market conditions, including those related to international conflicts,
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, the outcome of pending or future litigation proceedings, any
supply chain disruptions, any public health crises, pandemics or
epidemics (including the COVID-19 pandemic), and other business
and operational risks and other factors, including mining accidents.
For a discussion of such risk factors, refer to AngloGold Ashanti’s
annual report on Form 20-F for the year ended 31 December 2021
and the Risk Factors section in AngloGold Ashanti’s Prospectus
Supplement dated 19 October 2021, each filed with the United
States Securities and Exchange Commission (SEC). 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.
Materiality disclaimer
Inclusion of information in this report, including any discussion, analysis or assessment of “material”, “significant”, “key” or similarly
described information is not an indication that we deem such information to be material to an investment decision related to our
securities or important to an understanding of our business more generally. This report also contains certain forward-looking
statements, including “forward-looking statements” made within the meaning of the U.S. Private Securities Litigation Reform Act of
1995. In particular, these include, among other statements, forward-looking statements relating to the Company’s future performance,
goals and objectives, as well as future regulatory developments, with respect to sustainability and other environmental, social and
governance matters. Such statements are often, but not always, made through the use of words or phrases such as “believes,”
“expects,” “anticipates,” “estimates,” “intends,” “plans,” “seeks”, “will,” “should,” “could” or “may” or words of similar meaning. They may
involve estimates and assumptions that are subject to risks, uncertainties and other factors. These and other statements made in this
report may be affected by a wide range of variables that could cause actual results and performance to differ materially from those
currently anticipated, including the risk factors set forth in our Report on Form 20-F filed on 30 March 2022 with the U.S. Securities and
Exchange Commission.
144
145
AngloGold Ashanti Limited 2021AngloGold Ashanti Limited 2021 ADMINISTRATION AND CORPORATE INFORMATION
Directors
Executive
A Calderon
(Chief Executive Officer)
KC Ramon ^
(Chief Financial Officer)
Non-executive
MDC Ramos ^ (Chairperson)
KOF Busia°
AM Ferguson *
AH Garner #
R Gasant ^
SP Lawson #
NVB Magubane ^
MC Richter #~
JE Tilk5
*British 5Canadian # American
Colombian ~ Panamanian
^ South African ° Ghanaian
Officers
LM Goliath
Group Company Secretary
Investor relations contacts
Yatish Chowthee
Telephone: +27 11 637 6273
Mobile: +27 78 364 2080
E-mail:
yrchowthee@anglogoldashanti.com
Andrea Maxey
Telephone: +61 08 9425 4603
Mobile: +61 400 072 199
Email: amaxey@anglogoldashanti.com
AngloGold Ashanti Limited
Registration No. 1944/017354/06
Incorporated in the Republic of
South Africa
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
112 Oxford Road, Houghton Estate,
Johannesburg, 2198
(Private Bag X 20, Rosebank 2196)
South Africa
Telephone: +27 11 637 6000
Fax: +27 11 637 6624
Australia
Level 10 AMP Building
140 St George’s Terrace
Perth, WA 6000
(PO Box Z5046, Perth WA 6831)
Australia
Telephone: +61 8 9425 4602
Fax: +61 8 9425 4662
Ghana
Gold House
Patrice Lumumba Road
(PO Box 2665)
Accra
Ghana
Telephone: +233 303 773400
Fax: +233 303 778155
Share registrars
South Africa
Computershare Investor Services
(Pty) Limited
Rosebank Towers, 15 Biermann Avenue,
Rosebank, 2196
(Private Bag X900, Saxonwold, 2123)
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
18 Gamel Abdul Nasser Avenue
Ringway Estate
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
146
6593/21
AngloGold Ashanti Limited 2021 www.anglogoldashanti.com